Business Plan (Concept, Samples & Examples for Students)

Business plan content, samples, and examples for students

Small or Medium-sized Enterprises (SMEs)

Several economies now have a significant numbers of small or medium-sized enterprises (SMEs) (the definition of an SME may differ somewhat across countries). As well as providing a living for their owners, SMEs make a significant contribution to the economy generating significant employment and annual turnover in the private sector.

In SMEs, the focus is on the owners’ objectives: Many small businesses are the psychological extension of the owner-manager or entrepreneur. So their personal motives and objectives will be crucial in assessing success or failure.

In micro-entities, the owner(s) is likely to be very influential in determining the strategic objectives of the business.

In terms of sustainability cash however, flow will always be an important.

Failure is often seen as the result of owners and managers not making plans or having very limited plans that do not capture important issues relating to the viability and sustainability of the business.

Business closures almost match the rate of business start-ups in most countries/

10% of business enterprises close each year and most are small or micro-entities. 66% of businesses close within the first five years (Stokes and Wilson, 2009)

Note the word ‘closure’ rather than ‘failure’.

Main reasons for closure: Sold, Not meeting the owners’ objectives, Financial failure, Technical closure (reopened in another form).

Finance and the Finance Gap

Finance is ‘The capital involved in a project, especially the capital needed to start a new business.

The finance gap is the situation where a business has profitable opportunities, but is unable to raise the finance to exploit them.

Typically a problem for SMEs, but it may not be the most important problem.

If a gap in funding exists it may seriously be a threat to sustainability and growth of small business entities.

Funding Sources

Where are to raise the capital to start the business?

• Own savings
• FFF (Friends, Family and Fools)
• Banks
• Business Angels
• Venture Capital
• Partnerships
• Issuing Shares to Employees
• Leasing and hire purchase
• Alternative sources of finance e.g. crowd funding

Debt finance: Overdraft, loans and mortgages, Trade credit, Debentures (companies only)

Asset-based finance: Hire purchase (rental & purchase agreement), Leasing (rental agreement), Invoice finance (raised against receivables)

Equity: Ordinary share capital/ Owners funds, Corporate venture capital, Venture capital from business angels

Alternative finance: The model

A high proportion of models operate solely via websites designed to meet customers’ needs.

Example: Peer-to-peer (P2P) lending.

• Customers interested in a loan complete application form
• Using online data and technology, the platform quickly assesses risk, determines credit rating and assigns an interest rate
• Successful applicants receive offers in minutes and can evaluate loan options
• Individual or institutional lenders select applicants to whom they wish to lend, and earn monthly returns

What is a Business Plan & Why You Need One?

A plan for a new business usually includes a statement of business’s goals, reasons they are attainable, and plans for reaching them.

Without a plan in mind, it is very difficult for anyone to reach their destination.

A business plan helps you formalize your goals and makes it easy to check on your progress as the business grows, as well as ensures that you have something to show to banks or potential investors to prove that you know what you’re doing.

Does one really need a business plan to do well? While it is certainly possible to reach success without one, a business plan is helpful in reaching your goals in a timely manner.

It is also mandatory if you intend to go after outside financing, such as a bank loan or angel investors.

What is It?
The simplest form of a business plan is simply a list of ideas you have. This may be enough to keep you on track yourself, but if you want to attract investors, you’ll need something more involved. It’s also a good idea to go a bit more in depth for yourself, as well. The more detail you record, the easier it is to reach your business goals.

What Does it Include?
A few things to keep in mind before starting:

Be conservative when considering how much money you need to operate.
Keep it simple; some detail is good, planning for every possible catastrophe is a waste of time however plan your first year in detail.

Include the what, why, where, and how you will market your business. It should include:

Your Mission Statement
Your Skills
The Business Profile
Business goals
Analysis of the industry
Steps you will take to reach your goals
Cash Flow Assessment

See How You Compare
Throughout the year, take a look back over your plan and compare your expectations to where you really are. This can help you shift your focus, if necessary, to get back on track. Since it can be easy to lose sight of your goals when you are faced with the daily task of running your business, having a plan can be handy. Simply refer to it whenever you need to be reminded of where you’re going. It’s a good idea to check it at least twice a year and make changes as your business shifts.

Main points to cover:

• Type of business entity and the business idea
• Key people (owners/managers)
• Market and customers
• Industry and competition
• Business objectives and strategy
• The financial analysis is a major component

To Conclude
When you’re creating your business plan, you might find it helpful to look at sample plans to get a better feel for how yours should look. It doesn’t necessarily have to be a huge book: even two or three pages can be enough if you have all the information down. The length will also depend on whether you are showing it to someone else or merely working up the numbers for your own use. Writing a business plan creates a road map for the entire company. There are various sample business plans that you could refer, in case you want to create one. When writing a business plan, make sure to include the key components, such as an executive summary, an operation section, a management section, a marketing section, a finance section and an appendix.

Cash Flow Forecasts

A cash flow forecast is similar to a cash flow statement, but instead of showing the actual movements of cash over the period, it shows forecast or budgeted figures.

Cash inflows expected from capital, loans and revenue.

Cash outflows expected on purchases of inventory and other expenditure.

Timing of the cash flows (important because transactions can be for immediate cash or on credit).

Purpose of a cash flow forecast or budget

At the start-up stage, a cash flow forecast can be used to plan the amount of capital required.

Once the business has started cash flow forecast/budget helps management:

Plan the investment of cash if there is likely to be a cash surplus.

Anticipate the need for additional finance if there is likely to be a cash deficit.

Monitor actual cash flows against the forecast/budget, investigate reasons for any significant adverse variances and take remedial action to ensure the business meets its financial objectives.

Financial Analysis

Start up: Financial Analysis Stage (1)

Funding requirements:

• start up capital
• working capital
• asset capital
• timing of cash flows
• risk and reward: risk / return trade off
• security offered

Start up: Financial Analysis Stage (2)

Cash flow:

• six month forecast
• receipts
• payments
• balances over time / identification of surplus and deficits

Forecast profit or loss for a year:

• Balance Sheet: uses of funds, sources of funds
• Ratio analysis
• Sensitivity Analysis

Example: One Page Business Plan

Business Overview

Customer Problem Worth Solving:

Finding an online store for formal and outwear clothing as currently in the market we can only findd a price range of 500 to 1000 when itcoms to street wear.

Solution:

Creating an online platform for formal wear and old money clothing filling the gap in the market for affordable formal wear with a price range of 500 to 1500 and also, the market gap for formal wear which is not present in the Indian market.

What is your PRODUCT/SERVICE? How is it better or different to what is already available?

The process includes selling formal clothing for men and women on online platforms. This includes formal wear such as t-shirts, shirts, polo necks, skirts. trousers, shorts, formal dresses, coats and sweaters. These will sold on online platforms such as Instagram, Facebook, Official website and Amazon where, products will have marketing campaigns running through google ads, business Meta Suite, Instagram, and through influencer marketing.

The products are different as clothes with an old money aesthetic are usually priced at RS 1500 or above allowing a larger target audience to benefit from the ‘old money aesthetic’ as clothes will be priced at Rs, 399 above to Rs 2000+.

Market Analysis

Target Markets:

Target audience will include college students (17 to 21), working women (21 to 45) and women to the age of 60 as the designs and aesthetic is suitable for women of all ages. Target audience of men would include working men, college students and school students from the age of 16 to 50.

Distribution:

The product will be sold on a website and be promoted through social media platforms such as instagram Facebook, Twitter through influencer marketing.

Competiors:

The competitors would include online stores such as Urbanic, Snitch & Co, Spykar, online shopping platforms with their own products such as Amazon and Myntra, Zudio,Street shopping.

Marketing / Finance Plan

Marketing Activities:

Marketing such as influencer marketing through social media platforms and through reels, posts and stories, hosting special invite events for influencers will increase awareness, marketing through Google ads, business meta suite and more will allow brand name to pop up when searched on Google and directly guide customer to the website. Traditional marketing can be established once the brand has gained recognition where, we can have local celebrities on billboards, referral discounts, vouchers and more.

Any research conducted to test your idea?

Primary research was conducted where I went to select stores which have the old money aesthetic, where price ranged above 1000. Local street shopping had prices present from 500+ for formal wear. Secondary research was conducted as online stores such as Marks & Spencers, Amazon and Myntra had price ranges for old money clothing from 800.

Business Location:

On a Website where Instagram and Facebook will direct the user to the website and have the clothes present on the page as well.

Pricing:

Clothing will range from Rs:300 to Rs: 2000, where shirts will range from 300 to 700, pants from 300 to 700, skirts from 400 above, coats/blazers from 700 above and other accessories above 150.

Revenue Streams:

E-commerce, B2B, C2C.

Estimated Costs:

250,000 for website development + 20,000 for UX/UI + (10,000 to 40,000) for payment gateway integration + 20,000 for maintenance + 50,000 for SEO and marketing totaling up to RS 3.5 Lakh to Rs. 4 Lakh.

Detailed Business Plan: Structure

A detailed business plan is an essential element in the implementation of a business idea. The plan must consider company resources, identify specific markets, and establish specific plans for dealing with marketing, legal, manufacturing, personnel, and financial elements. Finally, it must include a schedule for implementing the plan.

I. Executive summary

• A. Key elements of the plan
• B. Description of business and target markets
• C. Brief description of management team
• D. Summary of financial projections

II. Business history

• A. History of company
• B. Products-services offered and their unique advantages
• C. Domestic-market experience
• D. Foreign-market experience
• E. Production facilities
• F. Personnel-international experience and expertise
• G. Industry structure, competition

III. Market Research

• A. Target countries
  1. Primary
  2. Secondary
  3. Tertiary
• B. Market conditions in target countries
  1. Existing demand
  2. Competition
  3. Strengths and weaknesses of the economy-barriers to entry, etc.

IV. Marketing decisions

• A. Distribution strategies
  1. Indirect exporting
  2. Direct exporting
  3. Documentation
  4. Direct investment, strategic alliances
• B. Pricing strategy
• C. Promotion strategy
• D. Product strategy

V. Legal decisions

• A. Agent/distributor agreements
• B. Patent, trademark, copyright protection
• C. Export/import regulations
• D. ISO 9000
• E. Dispute resolution

VI. Manufacturing and operations

• A. Location of production facilities for exports
• B. Capacity of existing facilities
• C. Plans for expansion
• D. Product modification necessary to adapt to local environment

VII. Personnel strategies

• A. Personnel needed to manage exports
• B. Experience and expertise of existing personnel
• C. Training needs of existing personnel
• D. Hiring needs in the short term and long term

VIII. Financial decisions

• A. Pro forma financial statements and projected cash flows assuming export activity
• B. Identification of key assumptions
• C. Current sources of funding-private and bank funding
• D. Financial needs and future sources of funding
• E. Tax consequences of export activity
• F. Potential risk and sources of protection

IX. Implementation schedule

Questions, samples, examples on Business Plan

Management (MBA) question (assignment, essay, project) on making a Business plan.

Question: Making a Business Plan (Report). I twill have the following format.

Executive Summary
A brief description/ explanation of the business idea? What is the problem your business solves? How will the business deliver this solution? How is this different or better to what is currently available? A Brief identification of Key staff and skills required to run the business.

Value Proposition and Business Canvas
A completed Value Proposition Canvas for your business with written explanation. A completed Business Canvas Model for your business with written explanation.

Market research / Target Market(s) and Competitors
An analysis (quantitative & qualitative) of the market/ sector you intend to compete in (including reference to Market research from MINTEL & other reports.) Is this a growing market? What is changing in the market? What are the key trends? This will most likely be based on national rather than regional data – but use regional/ local data if applicable and if available.

You need to undertake some primary market research (such as survey) to substantiate demand for your business idea and present the findings of this in your report.

Marketing/ launch/ plan
Launching your business (creating an identity, building awareness with your target market(s) How will you do this? Launch event? Pop up shop? Social media? Introductory offers? Endorsement from influencers/ bloggers?

Developing a marketing communication plan for your business. Online and offline – Targeted Promotional activity/publicity/ Events/Shows/ Selling activity/ Provide an explanation of your social media marketing strategy: How you will use and combine Instagram/ You Tube/ Facebook etc? and links to your web site.

How will you sell and distribute your products or services? Through social media? Website? Direct to customers or through intermediaries? Selling to commercial buyers? (other businesses?).

State your pricing strategy, competitive pricing? Value based pricing? (avoid simply competing on price). Use of a customer subscription model? Single unit vs. bulk purchases? (Your pricing strategy should relate to expected profit margins)

Identify the business premises/ location (unit to work from or high street presence?)

Finance:
Identify start-up costs- capital items/ monthly materials or stock/ overheads – This should be as realistic as possible. How much start-up capital will you need to start the business? Where will the start-up capital come from?
12 Month cash-flow forecast (Your figures will be projections based on realistic monthly sales & expenses.) You should provide some commentary in your report to explain key figures in the cash flow forecast eg: the monthly sales figures – how did you reach this figure? A cashflow template is provided on CANVAS.
A Projected Profit & Loss Statement for your first 12 months of trading. The Vision and business goals (turnover/ market coverage) for the first 12 months & for next 2-3 years?

Appendices:
You should Include in this section any relevant appendices which support your Business Plan. The appendices are not part of the 5000-word limit for this assignment. YOU SHOULD INCLUDE SUPPORTING MATERIAL SUCH AS:

Equipment lists

• A map showing the location of the business premises
• Copy of Primary research questionnaire
• Identification of the different suppliers
• Price lists
• Staffing requirements for the business – over next 12 months
• Regulations/ Licences required for your business

Question) As a JGU student, you got to know about the French company “Sodexo” and dreamt about starting and managing a similar yet better company in the same domain. Now your dream has become a reality with Total Solutions Pvt. Ltd. (TSPL). TSPL is a new start-up that you have founded in the facilities management space. TSPL aims to target small to medium organizations in the Delhi NCR area to win and retain customers.

You have exhausted all your personal savings on this venture on the following;

1. Renting an office space on a lease at Sonipat city
2. Hiring one personal secretary, one accountant and one housekeeping staff (total 3 full-time staff members) for your office in Sonipat.
3. Official website
4. Buying a secondhand car for Official use

Since you have Just started, there are NO company revenues at present. Unfortunately, you need significant amount of cash now to fund your marketing and sales plans as well as hiring required manpower, in addition to other expenses as you deem fit.

You are now looking to get funding from an Angel Investor in order to start and expand your operations. You understand well that the Angel Investor will finance your venture only when your business-plan looks feasible and makes sufficient business sense. The document of course needs to be well drafted.

In this context, you have to draft a Business Plan, for presentation in front of an Angel Investor. Your Business Plan should iclude, but not limited to, the following components;

l. Executive Summary
2 The Opportunity
3. Vision, Mission. Strategy
4. The company and its products
5. Management Team
6. HR plan
7 Marketing Plan
B. Operations Plan
9. Financial plan
10. Any other section(s) deemed appropriate

Prepare a Business Plan for this scenario.