Lesson 10 - BUSINESS PLAN
One who earns his bread,
By sweat of his brow in a good way,
And where enterprise is done,
There shall God Himself stay.
UDYAM SHASTRA- Chapter 10,Verse 8
KEY OBJECTIVES:
Reading this module and doing the students activities will enable the students :
To develop ability to identifying business opportunities
To develop ability draw business plans.
To develop ability to a write report
To develop ability to make a business presentation
ENTERPRISE CONCEPTS:
(Basic instruction regarding E.CONCEPTS to trainers: The trainer is requested to first read and follow the Basic instructions regarding Enterprise Concepts to trainers and proceed further thereafter. The trainer should ask a series of leading and thought provoking questions to elicit answers from the students. These answers are expected to make the students understand these E.Concepts in their own words that they recognize and know).
Definitions of the E. CONCEPTS of the module Business Plan
BUSINESS PLAN : A detailed plan describing the future plans of a business.
BUSINESS OPPORTUNITY : The activity of buying and selling goods and services, or a particular company that does this, or work you do to earn money.
BUSINESS REPORT : A written report of business activities planned for future.
BUSINESS PRESENTATION : Verbal expression by individual or more with help of charts or other audio-visual aid to explain the business plan.
ENTERPRISE SKILLS:
The students activity is designed to clarify the CONCEPTS of the module and develop some ENTERPRISE SKILLS (E. Skills).
The E.Skills included in a module may not be exhaustive but are only indicative. E.Skills stated in modules elsewhere may also get addressed through the activities of a module.:
IDENTIFYING BUSINESS OPPORTUNITY : Ability to see a possibility of making a new product or service to generate wealth or solve a problem in a cost effective manner.
MAKES PLANs: Ability to arrange the action to be taken in terms of sequence of actions to be taken in accordance with the objective.
IDENTIFYING CUSTOMERS: Ability to identifying a probable customer who may have use of the product or services offered by you.
ESTIMATE INCOME : The ability to make prediction about the probable income. The Income estimation is different than sales and marketing plan. Sales and Marketing targets are normally more than the actual expectations. So taking in to consideration
all uncontrollable factors and making very realistic estimation is an ability different than marketing plans.
ESTIMATE EXPENDITURE : To be able to predict the expenditures. The ability to predict the chance happenings and uncontrolled factors accurately is required to estimate the expenditure.
ESTIMATE PROFIT : Keeping in view the income and expenditure, maintain the balance of both and predicting net profit is very essential. It is this estimation that helps a entrepreneur to decide whether a particular venture is worth the risk or not.
IDENTIFYING COMPETITIONS IN MARKET: The ability to see if any other company in the market offers the same product or services as his own. To be able see if there were any chances of his potential customers going to some other businessman for the product or service provided by him.
DRAW PLANS FOR OVERCOMING COMPETITION IN BUSINESS: If an entrepreneur can see that his customers are going
for some other companies product or services and he could loose business due to that, he must also be able to work out a plan to win back the customers and keep his profit to an expected level.
STUDENTS ACTIVITY
Activity 1 : WHAT TO DO ?
This is a group activity to be performed at home. The students must be given at least one or two weeks time to present their final presentation. The first session in the class must involve discussions based on the questions in task sheet. The E concepts involved in the activity may be simplified and explained to the students. The best way to do this will be to tale presentations on discussion at the end of the first session. After one group finishes a presentation e concepts that well explained by the group must be highlighted back. After all the groups finish if there are some concepts which still not covered in any presentations must be taken up the teachers for general discussion. Students must be motivated to make the business plan with as much details as possible. The use of charts, computer, dramatization etc must be encouraged to make their final business presentation very interesting.
Instruction to Students:
Form groups with the help of teacher.
Read your task sheet carefully.
Discuss the points in your group
Prepare your business plan using the help questions given.
Make an impressive business presentation.
Your group is given a shop as big as your classroom in the busiest street of your town or city. Your group has been given a task to start some business there. The shop is given to you free of cost and you dont have to pay any rent for first five years of your business.
Make a report on the business you plan to start there using the following questions.
1 . What will be your product or service?
______________________________________________________________________________
2. Who will buy it?
______________________________________________________________________________
3. How much capital will be needed to start your business?
______________________________________________________________________________
4. How will you get the capital?
______________________________________________________________________________
5. How will you advertise or market business?
______________________________________________________________________________
6. How many people will you employ to run the business?
______________________________________________________________________________
7. How will you try to attract customers?
______________________________________________________________________________
8. Who are your competitors in business?
______________________________________________________________________________
9. What will you do to win over your competitors?
______________________________________________________________________________
10. Will there be any good business season in your plan?
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11. What will you do to have more business in low business season?
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