 I am S.R. Doolange working as an associate professor in the Department of Mechanical Engineering at Vajjan Institute of Technology, Solapu. In this video, we will discuss on writing a business plan part 1. Learning Outcome At the end of this session, students will be able to write a plan for starting a business and getting funds. Content Components of business plan Details on components of business plan and references In the introduction video, we had discussion on components of business plan and now here, we will discuss in detail on each components of business plan. Business Plan Pause the video for a moment and think which are the compelling reasons to write a business plan. In my opinion, the compelling reasons to write a business plan are rising the funds, applying for the incubation and may be participating in business plan competition. Now, what are the components of business plan? Basically, there are two formats of business plan. One is written format and other is power point presentation. It consists of two things. One is a cover page, another is a contents. Cover page is nothing but it is a first page where the whole impression of the business plan is depending on this cover page. So as it is said, first impression is last impression. So invest in designing the cover so it stands out. It should catch the eyes of the investor. It should be professional and it should be out of the crowd. Contents People do not have time to go through the whole report. Contents tells your audience what to expect in the report. Dedicate two or more pages so that it will make an impact on the audience. Now in this video, we will discuss the contents in detail. First is executive summary. Second the business. Third market and market demand. Fourth competitive advantage and your value proposition. Fifth strategies operation management. Six the resources. Seven financial outlets and financial closures. And projected financials. Eight risk opportunities and sensitivities. Nine conclusion. Ten appendices. Now first is executive summary. You should be alert and mindful while writing a summary. It should contain everything about the business. People are going to read this. In a couple of pages, you have the opportunity to show the compelling reasons, motivation and driving force. The business. What business? What is your product or service? What customer pain you are going to elevate? The team? Who? Your team members? The proposal? Your value proposition? Why now? Reliance? Big picture? Technology? If suppose the 5G is coming, Now the important and related businesses based on it is nothing but a why now. Why it will succeed? Because everyone tries. What the rewards will be? So actually you must have to think the reward for the investors. Major risk and how you can minimize them. Very important. Again executive summary. For most readers, it will be the first few pages or the only pages they read. Spend time on it. Nurture it. Hone it. Even give it to a professional to edit. It may be the best investment you make. Summary. Make the first impression. Research evidence says that we create an impression about a person we meet in the first 15 seconds. If you are presenting for say 5 minutes, you create a lasting impression that is hard to shift later. Must be persuasive. Should cover all the key issues. Try to be detailed but brief. Means provide all key information in a precise way. Show your compelling reason of the business. Why now? Make it short and interesting and keep people expecting more. Second, the business. In business we will have a background and business mix by segment. You brief your audience on the bare essentials. What it does. For whom. Why. Where. With whom. With what. Highlight the traction. Traction means having a measurable set of customers or users that serves to prove to a potential investors. Introduce more detail on the background to your business than you will have set out in the executive summary. Remember that your plan is to be short, sharp, punchy document aimed at hooking your audience. There is where the reader is introduced to the business where you set out clearly and concisely what makes the business tick. The atoms in the background are first is the opener, second is goals and objectives, third is strategies, fourth is resources, fifth is basic financials. Now the opener, opener should be just one paragraph containing who you are, what products or services it focuses on, which main customer groups your business serves, where it is based, where else it has operations and where it sells with what success in terms of revenues and operating margin. Generally operating margin is nothing but operating profit divided by sales and by which year you will achieve. Next is the goals and objectives. Your goal is to become customer centering. So your objective may be percentage satisfied customer. Put a number say 40% of our customers will rate highly satisfied by next year. You may set the goal in terms of market share. Now put data to set the objective. You are working to gain 10% market share by the end of next year. Goals are directional, objectives are specific. You know what is smart. Smart is nothing but specific, measurable, attainable, relevant and time limited. So your goals must be smart. Mission sets your business apart from the competitors. Vision is where you want your business to be or achieve in the long term. Values are how you respond to the moral, ethical, safety, health, environmental or other values. Your audience is more interested in the specific goals and smart objectives. The next under business is strategy. What strategy you add up to build and maintain competitive advantage. How is your offering differentiated, unique features that customers love technically superior, convenient purchase and delivery, hassle free maintenance and many more. Next under the business is resources. Highlight the key resources such as strategic location, existing infrastructure including office access to strategic assets, technology, IP that is intellectual property, team, mix of skill, mentors, key employees, any arrangement with suppliers and distribution, any acquisition plan. Good to have an infographics and timeline. Write a separate paragraph on your team including key employees. Highlight the credentials of the team and how the skill set and experience will help in executing the business model. You may also mention their key responsibilities and ownership. Now for every businesses we require certain resources. That is first is personal, second is technology, third is finances, fourth is distribution, fifth is promotion, sixth products and services. So you must have to put certain emphasis on these resources. Under the business the next is basic financials. Provide a summary of key financial metric such as sales and operating profit. In case no sales has been made so far, state the major expenses incurred, the source thereof and the time it required. Next under the business the business mix by segment. Clearly define which group of people of businesses constitute your main customers, what products or services you are offering them, which of them will critically contribute to your business success. Next under the business is the business customer segment. Who are the target customer? Define customer persona. In which way will they benefit from your offerings? How do you offer a superior product market fit compared to the competitors? How do you target them and position your product? You need to mention evidence such as market research data or validation by number of users and their responses. So in this video we had discussion on two things. One is the executive summary and next is the business. Now the third is market demand. So this we will discuss in the next video. These are the references which are used in order to create this video. Thank you.