The written document which is prepared by entrepreneur and describes by all the relevant internal & external elements involved in starting a new venture is called Business Plan. Generally it describes what entrepreneur plan to do and how be planned to do it. It also provides a direction so that a business unit can plan its future and helps to avoid bumps in the role.
Objective Of Business Plan
1.Provide Direction
The primary objective of a business plan is to provide direction to a business unit so that it can plan its future.It helps to develop a course of action that shows that the destinations determined by an entrepreneur can be easily achieved.
2.Outline procedures
Another objective of a business plan is to outline the step by step procedure that could be followed to convert a business idea into a successful business venture.It also integrates various external and internal elements on starting a new venture and various functional plans such as finance,marketing and manufacturing etc.
3.Attract Lenders and investors
The other most important objective of a business plan is to attract leaders and investors towards a business venture.It also aims at attracting key employees and suppliers towards business units and enables them to evaluate various operations proposed by business.
4.Guidelines for Implementation
The providing various guidelines for implementation of various business ideas is yet considered as another objective of business plan.It also mentions successful implementation through follows up and ensures achievement of predetermined objective.
5.Description of all accepts
The another objective of business plan is to provides description all accepts relating with proposed venture.It also aims at demonstrate a clear picture of what the new venture is where it is projected to go and how entrepreneur plans to reach there.
Importance of Business Plan:
1.Monitoring of business plan
The monitoring of business plan success is considered as another important aspect of business plan as it develops and examines operating strategies at expected result for outside evaluations.It also ensures successful implementation of business plans and derived maximum benefits.
2.Provide direction or achiving goals
The provide direction for achieving goals is yet considered as another importance of business plan.It helps to guide the employees and ensure that the activities are undertaken as per predetermined goals and directed towards its achievement.
3.Determines the flexibility
The business plan also determines the flexibility of business ideas.It also ensures its successful implementation and achieves the better result of the business plan.
4.Increase efficiency
The business plan enables owners, managers and workers to work with effectiveness and efficiency.It also facilitates in efficient implementation of business ideas so that maximum benefits can be derived.
5.Control instrument
Business plan acts as a contract instrument.It provides various standards and computer actual performance in order to defect deviation and take corrective actions.It ensures the smooth functioning of business units while implementing future business ideas.
6.Road map action
The provision of a road map of various actions is yet considered as another important part of a business plan.It provides a blueprint of future action to be followed for the achievement of business goals.
7.Identifying oppertunity and risks
Business plan is also helpful for business by identifying opportunities and risks that arise in the future.By identifying the opportunity and risk management system, take decisions to overview.
8.Design a rational business model
Business plans are also helpful for business enterprises to design a rational business model.
WHAT IS PROJECT PROPOSAL:
Project proposal is a document or report that contains the purposes of the project, procedures and steps that will be taken to complete the running project. Project proposal report helps to clarify the formal agreement between two parties, communication between two parties, communication between two companies by the help of its purposes and also for the team members of the company to approach the project.
Project proposals or reports contain several key elements for better business management.
1.Project Background:
The primary element of a business proposal is project background. It means what problems, challenges or opportunities are available for the project.
2.Objectives:
The other elements of the business proposal are what are the outcomes of this project.
3.Project Scope:
The other elements which contain the business proposal are what are the steps,stages or elements added in this project and how will the objectives be reached through the particular project.
Why Project Proposal Important For Business:
The purpose of a project proposal is to describe the service, scope, evaluation, research of the business enterprise.In other words project proposal report is a written document summary of the scope,evaluation, research, time and money.
Project proposal is so helpful or important for the business.We point out some key points about the importance of project proposal for the business.Those points are highlighted below.
1.It acts like a reference guide for the business.
2. It is a basic written document which helps in obtaining loans.
3.By the help of project proposal Govt. sanction license or certificate.
4.Its a controlling device for the enterprise.
5.Project proposal report supplies information to the business.
6.It is used as basic information by promoters to take investment decisions towards business models.
7.It evaluates the quality and soundness of the particular running or future project.
What is Project Report ?
Project report is a document which provides information about the whole business enterprise. Project reports collect information from various factors like technical, financial, economic, production and managerial for better understanding.
The project report is very much helpful for business enterprises and outsiders with management potential. Management through project reports monitoring all operations properly and helps to recognize all problems and find solutions.
Content Of Project Report:
1.It records Name,address and location of the promoter and firm.
2.It records the objective and scope of the business.
3.Provide Market Study:–Project report gives the analysis of the market in aspect of.
a.Size of the market for the particular product produce to the market.
b.Present demand and supply position of product service in market.
c.Future prospectus of market share.
d.Number of suppliers or manufacturers and entrepreneurs of companies.
e.It contains the availability of intermediaries like wholesalers and retailers etc.
4.Provide technical study:-Project report provides details about the technology tool and sources for availability of technical study like manufacturing process,plant and machinery,raw material included in production process,technique applied in product on manufacturing process, location of starting business and requirement of land and buildings.
5.Provide Financial Study:-Project report contains financial aspects such as total cost of project,expenses of the project,source of working capital and fixed capital,cost of production,profitability,term loan and depreciation in fixed asset.
6.Provide Manpower Study:- Project report records or provide manpower data like number of skilled,semi-skilled and unskilled employees appointed in production process in the business.Salary and wages structure of the employees and business personnel and facilities for training and development of employees skill & technique.
7.Marketing Study:- Project report contains marketing study and overview markets pricing strategies, advertising strategies,sale and promotion techniques etc.
Why Project Report Important for Business:
1.It supports financial assistance for business enterprises.
2.It helpful in project execution and project control.
3.Describe the direction and path of the enterprise.
4.Attract lendor and investors towards business.
5.It collects general information and project description for the business.
6.It evaluates the market potential and project implementation.
7.It estimates cost of project,sources of finance,working capital requirement in business and other financial aspects.
8.It also records the economic and social impact towards the business model.
What is Project Planning?
Project planning is a term commonly used at the time of starting a new business or enterprise. Project planning is a process of measurement of business goal,scope, objective,resources step by step.A proper project planning helps to easily understand by everyone.
Features of Project Planning
1.It is useful for every type of business like small,big,private sector and public sector organisations.
2.It is done at the time of beginning a new project or modification of an existing project.
3.Project planning helps the project in a systematic manner.
4.Project planning is the primary and basic form of executing project reports, technical study, marketing study, financial and managerial aspects.
Steps In Project Planning
Why a Business need a Business Proposal?
Writing a business proposal will help business to make important decisions on cash flow of the business , marketing and personnel system of the business. Here we provide some basic reasons for the need for a Business proposal in the Business model.
i.It will help reliable plan and projections
When starting a business it’s important to take some reliable plans and projections for the smooth running of the business enterprise.Business proposal report contains the reliable plan and projection for future running of the business model.
ii.it can help business to secure funding
Capital is an important role in any type of business. When your business is small, a business proposal report plays a bigger role in helping you to attract more and more investors or secure funding in the near future.
Writing or creating well researched business proposals will show investors and outsiders to understand the concept and cash flow of the business.Business proposal reports show how strong your business is.
iii.it provides direction to the business
Business proposal report contains all the strategies of the business model.So, it provides a structure to move the business in the right direction. In most cases business models fail because of their inflexibility in maintenance of business planning and business proposal.Writing business reports helps the business to make decisions at the right time.
iv.It helps business to identify strengths and weakness.
Business proposal helps businesses to identify strengths and weakness.When starting any type of business not only focus on your strengths but also focus on your weakness.If you know all the strengths and weak zones of your business then you can properly manage it.
v.It bind everyone on the same place.
Business proposal helps everyone in the business organisation to understand the business’s strategy, the goal of the company and goodwill.Business proposal provides the knowledge and information to business and binds everyone in the same place.
