Entrepreneurship

Business Plan
Unit – 3
❖ Unit 3: Business Plan
• Business Plan: Components of a Business Plan - Promoter's Background,
Background of the Business, Market Potential, Marketing Plan, Operational
Resources, Infrastructural Resources, Government Consents, Financial
Summary; Writing a Business Plan
• Marketing - the sustainment of a Business
• Pitching: Communication of the Business Plan in concise terms to Potential
Customers and Financiers in Verbal mode or Presentation mode
❖ Business Plan: Components of a Business Plan
A business plan is a detailed document that outlines a company’s goals and the
strategies it will use to achieve them. It serves as a roadmap for the business, and
its components are essential for defining the direction of the business. Here are the
key components of a business plan:
1. Promoter's Background:
o The promoter’s background details the history, experience, and
qualifications of the business founders and key stakeholders.
o This section is crucial because it helps investors understand the credibility
and capability of the individuals leading the business.
o It includes the promoter’s experience in the industry, skills, and past
entrepreneurial successes, which boost confidence in the business’s
potential.

Prepared by Ayush Kumar ( 83838 03881 ) 1 For Entrepreneurship , BBA – BFSI ( 2025 )
 o Example: For instance, if a new financial technology startup is led by
someone who has previously worked at top banks and has a background in
finance, it establishes trust in their ability to navigate the business. A
fintech promoter might have experience as an executive in a major bank
and can leverage that network and expertise to grow their new venture.
2. Background of the Business:
o This section introduces the business by explaining its name, founding date,
products or services offered, and target market.
o It includes the business’s mission, vision, core values, and long-term
goals. These should align with the overall objectives of the company.
o The background should tell the story of the business and why it exists.
o Example: If a company is launching an online financial services platform,
the background section would explain how the company aims to provide
accessible and affordable financial products to the underbanked
population. It would highlight the company’s mission to make banking
more inclusive and its goal to expand globally in five years.
3. Market Potential:
o Market potential refers to the estimated demand for a product or service
within a particular market or segment.
o It includes market size, trends, customer demographics, competition, and
growth forecasts.
o This section should answer critical questions: Is there a growing demand
for the product or service? What market share can the business potentially
capture?
o Example: For a digital insurance startup, the market potential could be
estimated based on the increasing trend of people seeking online insurance
services. The market might be growing as more people prefer purchasing
insurance online due to convenience, especially post-COVID-19. If the

Prepared by Ayush Kumar ( 83838 03881 ) 2 For Entrepreneurship , BBA – BFSI ( 2025 )
 startup plans to target the urban population with tech-friendly platforms,
the market potential could include data such as the number of smartphone
users and internet penetration in specific regions.
4. Marketing Plan:
o The marketing plan is a strategic document that outlines how the business
will promote its products or services to the target market.
o It includes identifying the target market, setting clear marketing
objectives, and choosing marketing tactics (digital, print, social media,
etc.).
o The plan must focus on building brand awareness, customer acquisition,
and long-term engagement.
o Example: A BFSI business might target millennials by advertising on
social media platforms like Instagram and LinkedIn. The marketing plan
would highlight campaigns to promote financial literacy and offer easy-to-
use investment tools, attracting younger customers who are looking to
manage their money more effectively.
5. Operational Resources:
o Operational resources refer to the various assets needed to run the day-to-
day activities of the business.
o These include human resources (employees), physical resources
(equipment, office space), and technological resources (software,
platforms).
o It is crucial for the business to have a clear plan for managing these
resources to ensure efficient and effective operations.
o Example: A financial advisory firm needs qualified financial analysts,
CRM software for client management, and a secure office environment.
The firm might also use advanced algorithms for portfolio management
and need a well-trained customer support team to handle client queries.

Prepared by Ayush Kumar ( 83838 03881 ) 3 For Entrepreneurship , BBA – BFSI ( 2025 )
 6. Infrastructural Resources:
o Infrastructural resources are the foundational systems and structures that
support business operations.
o This includes technologies, communication systems, facilities, and other
physical or virtual resources that ensure smooth business operations.
o A strong infrastructure ensures business continuity and scalability.
o Example: A digital payments company would require robust server
infrastructure to handle transactions securely. It might also need payment
gateways, secure authentication systems, and a dedicated IT support team
to ensure that the business can scale effectively as transaction volumes
increase.
7. Government Consents:
o Many businesses, particularly in regulated sectors like BFSI, need
government approvals and licenses before they can start operating.
o Examples of government consents include:
▪ SEBI: Approval from the Securities and Exchange Board of India is
necessary for businesses involved in financial securities.
▪ RBI: The Reserve Bank of India’s approval is required for financial
institutions, including NBFCs.
▪ IRDA: The Insurance Regulatory and Development Authority of
India approval is needed for insurance-related businesses.
▪ FSSAI: For businesses involved in food manufacturing or
processing.
o Example: If a new startup is offering peer-to-peer lending services, it
would require RBI approval to operate as an NBFC. Similarly, a business
offering health insurance products would need to seek IRDA approval to
legally operate.

Prepared by Ayush Kumar ( 83838 03881 ) 4 For Entrepreneurship , BBA – BFSI ( 2025 )
 8. Financial Summary:
o The financial summary provides a snapshot of the business’s financial
health.
o It includes financial statements such as income statements, balance sheets,
and cash flow projections. It also provides profitability and growth
forecasts.
o Investors rely heavily on this section to determine the business’s financial
stability and future potential.
o Example: A small business offering investment services might provide a
five-year financial projection showing steady revenue growth, increasing
profit margins, and strong cash flow. The company might include income
statements for the past two years, a forecast for the next three years, and
projections on capital expenditures and liabilities.
❖ Writing a Business Plan
Writing a business plan is not only a formal requirement but also a vital step for
the success of a business. It serves as a roadmap, guiding the business through its
early stages and helping secure funding from investors or lenders.
Steps for Writing a Business Plan:
1. Executive Summary:
o The executive summary is a concise version of the entire business plan,
highlighting key points such as the business’s objectives,
products/services, target market, and financial projections.
o Example: If you’re starting an e-commerce platform for organic products,
the executive summary will explain your goal to provide eco-friendly
alternatives and outline your business model, target demographic, and
expected financial growth over the next five years.

Prepared by Ayush Kumar ( 83838 03881 ) 5 For Entrepreneurship , BBA – BFSI ( 2025 )
 2. Mission and Vision Statements:
o The mission statement defines the purpose of the business, while the
vision statement outlines its long-term goals.
o Example: The mission of an eco-friendly brand could be "To create
sustainable living solutions for environmentally conscious consumers."
The vision could be "To become a global leader in eco-friendly products
and reduce environmental impact by 50% in the next decade."
3. Market Analysis:
o Conduct a thorough analysis of the target market, including size, trends,
customer needs, and competitive landscape.
o Example: If your business is a health-tech startup, market analysis will
show the increasing trend of digital health solutions, an aging population,
and rising healthcare costs, positioning your business to cater to a growing
demand.
4. Products and Services:
o This section describes the products or services you are offering, including
unique selling points (USPs) that differentiate you from competitors.
o Example: If launching a mobile app for fitness tracking, you should
highlight the unique features like personalized workout plans, integration
with wearables, and real-time health data analysis.
5. Operational Plan:
o An operational plan outlines how the business will run day-to-day,
including workflow, human resources, and the tools/technologies needed
to function efficiently.
o Example: A restaurant will detail its daily operations, including sourcing
ingredients, managing inventory, staff scheduling, and customer service
procedures.

Prepared by Ayush Kumar ( 83838 03881 ) 6 For Entrepreneurship , BBA – BFSI ( 2025 )
 6. Financial Plan:
o This section includes key financial projections (revenues, expenses, profit
margins), funding requirements, and potential sources of capital (equity,
loans).
o Example: A SaaS company might project $500,000 in annual revenue
from 50,000 subscribers and list funding requirements of $200,000 to
expand its server capacity.
7. Appendices:
o The business plan should have an appendix with supporting documents
like resumes, market research data, legal documents, etc.
o Example: An appendix for a new technology startup could include patents
or intellectual property rights that provide a competitive edge in the
market.

❖ Marketing - The Sustainment of a Business

Marketing is essential for business sustainability, ensuring that a business remains
relevant, competitive, and connected to its customers over time. A well-executed
marketing strategy is crucial for driving sales, customer loyalty, and brand growth.
Key Elements of Marketing for Business Sustainability:
1. Effective Customer Engagement:
o Regular interaction with customers through personalized communication,
loyalty programs, and post-purchase follow-ups helps build long-term
relationships.
o Example: A clothing brand might send personalized discount codes to
customers on their birthdays, encouraging repeat purchases and
strengthening customer loyalty.

Prepared by Ayush Kumar ( 83838 03881 ) 7 For Entrepreneurship , BBA – BFSI ( 2025 )
 2. Brand Building:
o Strong branding is crucial for business sustainability. A business should
establish its brand identity and keep it consistent across all touchpoints,
including logos, social media, packaging, and messaging.
o Example: Nike’s “Just Do It” slogan and its consistent use of empowering
imagery in ads help it maintain a strong brand identity that resonates
globally with athletes and non-athletes alike.
3. Customer Retention:
o Focus on building customer loyalty through excellent service, product
satisfaction, and ongoing communication. Retaining existing customers is
often more cost-effective than acquiring new ones.
o Example: An online subscription box service like Birchbox might engage
customers with monthly emails, exclusive deals, and personalized product
recommendations, encouraging customers to renew their subscriptions.
4. Innovation and Adaptation:
o Continuously innovate and adapt to changes in customer preferences,
market trends, and technological advances to remain competitive.
o Example: A food delivery service like Zomato continuously innovates by
adding new features such as contactless delivery, real-time order tracking,
and personalized restaurant recommendations, which keeps customers
coming back.
5. Effective Market Research:
o Conducting regular market research to understand shifts in customer
preferences and behavior ensures that marketing strategies are relevant
and effective.
o Example: A tech company releasing a new smartphone might conduct
surveys and focus groups to identify features that customers prioritize,
such as battery life or camera quality.

Prepared by Ayush Kumar ( 83838 03881 ) 8 For Entrepreneurship , BBA – BFSI ( 2025 )
 6. Social Media and Content Marketing:
o Leveraging social media platforms and creating valuable content that
resonates with your target audience helps maintain visibility and
engagement.
o Example: A skincare brand like The Ordinary uses Instagram to share
skincare tips, testimonials, and product education, engaging a community
of loyal followers.
7. Strategic Pricing:
o Competitive pricing strategies ensure that businesses remain attractive to
customers while maintaining profitability.
o Example: A new coffee shop might initially offer discounts or bundled
deals to attract customers before establishing its brand identity and
premium pricing.
8. Promotions and Discounts:
o Regular promotions and discounts incentivize customers to make
purchases and help businesses move excess inventory.
o Example: Amazon Prime Day, with deep discounts on a wide range of
products, creates excitement and drives massive sales for the platform.

Prepared by Ayush Kumar ( 83838 03881 ) 9 For Entrepreneurship , BBA – BFSI ( 2025 )
❖ Pitching: Communication of the Business Plan
Pitching is the art of communicating your business idea or plan clearly and
persuasively to potential investors, partners, or customers. A successful pitch can
secure funding, win partnerships, or generate interest in your product or service.
Effective Pitching Techniques:
1. Clear and Concise Communication:
o Your pitch should be clear, to the point, and focus on the most compelling
aspects of your business, such as the problem it solves, the market
opportunity, and its potential for growth.
o Example: When pitching a new mobile payment app, focus on the
increasing demand for seamless digital transactions and explain how your
app stands out in terms of security, speed, and ease of use.
2. Use of Visual Aids:
o A presentation pitch is more effective when visual aids, such as slides,
charts, and graphics, are used to reinforce key points and make the
information more digestible.
o Example: A startup founder pitching an AI-based product could use a
chart showing projected market growth in AI and how their product fits
into that growth, visually displaying the opportunity.
3. Understanding the Audience:
o Tailor your pitch to your audience’s interests, whether it’s investors
looking for returns, customers seeking value, or partners interested in
collaboration.
o Example: When pitching to an investor, highlight the financial potential
and scalability of your business. When pitching to customers, focus more
on the value proposition and how the product improves their daily lives.

Prepared by Ayush Kumar ( 83838 03881 ) 10 For Entrepreneurship , BBA – BFSI ( 2025 )
 4. Highlight Unique Selling Points (USPs):
o Focus on what makes your product or business unique and why it stands
out from competitors.
o Example: If pitching a new online loan platform, emphasize your unique
lending model (e.g., low interest rates, faster approval times, or a
completely digital process) as your USP.
5. Focus on the Problem and Solution:
o Clearly articulate the problem your business addresses and how your
product or service provides a solution.
o Example: In a pitch for a new water purification system, the problem
could be the lack of clean water in rural areas, and the solution could be a
low-cost, efficient purification system designed for local conditions.
6. Demonstrate Market Demand:
o Show that there is a real market need for your product or service by
providing data, research findings, or customer feedback that supports your
claims.
o Example: If pitching a new online education platform, you might present
statistics on the growing demand for e-learning or share testimonials from
potential users expressing their need for better online learning tools.
7. Anticipate Questions and Address Concerns:
o Be prepared to answer any questions that investors, customers, or partners
might have regarding the product, market, or business model.
o Example: When pitching an innovative app, investors might ask about
potential market competition, so you should be ready with information on
your competitive advantage and how you intend to overcome market
challenges.

Prepared by Ayush Kumar ( 83838 03881 ) 11 For Entrepreneurship , BBA – BFSI ( 2025 )
 8. Engage with the Audience:
o Engage the audience through storytelling, compelling examples, and
relatable scenarios that demonstrate the real-world value of your business.
o Example: Instead of just talking about your product, share a short story
about how your product changed someone’s life or solved a specific
problem, making the pitch more engaging and memorable.
9. Call to Action:
o End the pitch with a clear call to action, whether it’s securing a follow-up
meeting, asking for investment, or inviting customers to try the product.
o Example: After a pitch to investors, you might end with, “We’re looking
for a $500,000 investment to scale our operations and achieve profitability
in the next two years. Let’s discuss how we can make this partnership
work.”

Prepared by Ayush Kumar ( 83838 03881 ) 12 For Entrepreneurship , BBA – BFSI ( 2025 )