Page 102 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Unit 7: Building the Business Plan

down the strategies for segmentation of the market, identification of the target market and Notes
laying down strategies for target market.

Task Prepare a Business plan and forward the Business plans to any financial
institution and see the viability of the plan.

Production/Operation Plan: Production plan is drawn for business enterprises in the
manufacturing sector whereas operational plans are drawn for business enterprises in the service
sector. The production/operation plan should include strategies for the following parameters:

1. Location and reasons for selecting the location
2. Physical layout
3. Cost and availability of machinery, equipments, raw material

4. List of suppliers and if possible, distributors
5. Cost of manufacturing/running the operations
6. Quality Management
7. Production scheduling, capacity management and inventory management
8. Changes in above in case of expansions of business.

Organizational Plan: Organizational plan defines the type of ownership: it could be single
proprietary, partnership firm, company, private limited or public limited. It also proposes an
organizational structure and proposes human resource management practices that would govern
the successful running of the proposed business enterprise.

Financial Plan: Financial plan indicates the financial requirements of the proposed business
enterprise.
1. Cost incurred in smooth running of all the financial plans (marketing, operation and
human resources).

Did u know? Cost incurred in the marketing plan would include forecasting sales, for
production plan it includes cost of goods, for organizational plan it includes cost of
compensation to employees.
2. Projected cash flows
3. Projected income statement
4. Projected break-even point

5. Projected ratios
6. Projected balance sheet.
To cope with the rising competition, Hindustan Liver Limited (HLL) had come up with a new
strategy: New Product Every Month!

7.3.5 Project Report Preparation

After environmental scanning and feasibility analysis, a project report is prepared. It is a written
document that describes step-by step, the strategies involved in starting and running a business.

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