How to Prepare a

Business Plan

Why startup?
Control

& freedom
No job security anymore
Pursue your passion
Earn money
Change the world

Start Up Facts
3100 start ups in India, 3rd largest base in
India.
800 plus start ups setting up annually.
By 2020, there would be more than 12000
start ups operating in India employing about
a million of people.
300 VC/ PE & ~225 angel investment deals
worth over USD 2 billion.
Over 20 M&As worth ~USD 1 billion in last
3 years

Why create a Business Plan?

Focus!
Organize your thoughts and actions
Raise financing
Guide your team
Proactive not reactive
Determine costs

Ingredients of a great plan

1.
2.
3.
4.
5.
6.
7.

Clear
Well-researched
Short (10 pages)
Comprehensive
Proofed by experts
Written by you
Updated every 2 years

Inside a Business Plan

Cover Page

Business name, contact information

Executive Summary

Highlights of the plan (1 page)

Business Profile

Ownership and Management

Business Environment
Analysis
Marketing Plan

Your business objectives

Growth expectations and strategy
Ownership
Management and advisors
Professional advisors (lawyer, accountant)
History
Industry overview
Industry position
Target market
Competitors
Competitive advantages
Sales and marketing plan

Inside a Business Plan

Operations

Financial Statements

Personal Financial Statement

Appendix

Location
Equipment/Technology
Suppliers
Cost centres
Human resources
Sales
Customer Service/Support
Balance Sheet
Income Statement
Cash Flow Forecast
Financing needs (Startup Budget)
Banking arrangements
Net worth
Employment history
Research reports
Floor plans & diagrams
7

Creating your plan:

Research
Think
Decide
Enter
8

What about you?

Passion
Ambitions

in life
Work preferences
Personal priorities
Your skills

Set goals
Personal

goals
Financial goals
What will your business achieve?
Who will it serve?

10

Market Research
Research

your idea

Customers
Surveys
Interviews
Focus Group

Competition
Industry

research

Trends

11

Product description
What

you will sell

What does it do
Benefits
Suppliers
Price
Costs

12

Decide operations
Where

will your business operate

Who will run it
Hiring employees
Processes

to make a product or
deliver a service

13

How much money do you

need?
Calculate

Startup Budget

Capital costs +
Operating costs (x 6 months)
Revenue

& expenses for financial

statements
Capital Cost

Operating Costs

Equipment

Heat

Renovations

Telephone

Inventory

Wages

Building

Advertising

14

Where youll get the money

Savings
Friends

& family

Banks
Investors
Govt

Programs
Customers & suppliers

15

Who will help you in

business
1.

2.

3.

Professional advisors
(banker, lawyer,
accountant, coach)
Peer advisors
(entrepreneurs,
mentors, colleagues)
Paid help (employees,
suppliers, freelancers)

16

Launch information
When

will you open for business

Planned promotions
First customers
Schedules
Testing your systems

17

Test your plan

Underestimate

revenue
Overestimate expenses
Ask several experts to proof it
Run what if? scenarios

18