PM YOUTH BUSINESS LOAN SCHEME GUIDELINES ON DEVELOPING AN EFFECTIVE BUSINESS PLAN

PM YOUTH BUSINESS LOAN SCHEME GUIDELINES ON DEVELOPING AN EFFECTIVE BUSINESS PLAN

Guidelines on Developing an effective Business Plan

1.What is a business plan:

• It is the face of your business; Functions like a magnet, attracting your clients, investors and strategic partners
• It is a living document; You should Review it with every change in external and / or internal factors

2.Why does the applicant need a business plan:

• Read the first page of Business Plan Template. Which explains
• First step for fine tuning your ideas for practical implementation into a functioning business
• Acts as a ‘How to’ guide for running your business
• Helps you map options for best and worst case scenarios

3.How to develop a business plan:

• Know your business: Market research, product / service, target customer
• Create your identity: Company/ Business mission, vision
• Structure your thoughts: Write your business plan (Refer to Table of content of Template)
• Key features of a good business plan

4.Think about the following before and after you’ve written every section:

• Description of your project and product (Refer to Sec II of BPT)
• Marketing Plan: Product, customer profile, distribution channel and proposed location, pricing, promotion and advertising.(Ref to Sec III of BPT)
• Operational Plan: Production, location, Inventory, Credit, Payables (Refer to Sec IV of BPT)
• Management and Organization: Competitive strengths, Legal form and structure (Ref to Sec V)
• Startup Expenses an Capitalization: Estimating Pre Ops, Contingencies and unforeseen (Ref to Sec VI)
• Financial Plan: Recommend using professional help for Income Statement, Balance Sheet and Cash flow (Ref to Sec VII)
• Appendices; Advice on appending useful written materials to Business Plan (Refer to Sec VIII)
• Refining the Plan; Advice on how to create a plan specifically suited to applicants business.(Refer to Sec IX)

5.Who will develop a business plan:

• The entrepreneur may use professional help, however DO IT YOURSELF
• Technical advice from private sector experts/Govt institutions, listed.