 I am S.R. Doolange working as an associate professor in the Department of Mechanical Engineering at Walchand Institute of Technology, Solapur. In this video, we will discuss on writing a business plan. Learning Outcome At the end of this session, students will be able to write a plan for starting a business and getting funds. Content Business model and plan The purpose of business plan Factors affecting business plan Components of business plan Template of business plan References Business model and plan Pause the video for a moment and think what is the distinction between business model and plan. In my opinion, they are not the same thing but they refer to the same thing and are distinctly different. Business model is identifying the customer pain, elevate the pain by providing a solution with best value proposition. Business plan is how to execute the business model. Now what is business model? Business model is the business that is taken up to solve a problem. Now the problem may be solved by an individual, a group of team member or group of co-founders. For a customer segment through superior value proposition and deliver the value in a competitive way to create wealth for the stakeholders. Now for the stakeholders here, the customer should be happy at the same time the proposition should be profitable proposition in the interest of the manufacturer. Now here the word important is value proposition. Now what is the meaning of value proposition? A value proposition is a promise of value to be delivered, communicated and acknowledged. It is also a belief from the customer about how value that is benefit will be delivered, experienced and acquired. Now let us take an example of a business model. Suppose you start a business to manufacture and sell e-bikes. Your business model is to manufacture and sell e-bikes adopting a new value proposition to maximize customer satisfaction and also to create an increasing and repeatable loyal customer base for sustainable profit. The value proposition includes meeting the needs of your target customers, offering superior value for their money compared to the competitors, convenient delivery of the bikes and ensuring pleasant experience of using the product, offer satisfactory after sales and service. Now what is a business plan? Business plan on the other hand is a description of the business model. It is a ready-reconner. How do you execute business model is nothing but a business plan. It is a return elaboration. It talks about your milestone. How you are going to achieve the goals. Business plan is a document that delineates the detailed execution of the business model. It is short analysis that is strength, weakness, opportunity and threat. Nowadays it is called as source analysis where S is strength, W is weakness, O is opportunity and C challenge. Unique selling proposition. It is a team member, business process management. What are its strategies to remain competitive? How it will acquire and retain increasing number of customers and will be its financial performance? Business plan also states how it plans to create value for its investors. Now what is the definition of a business plan? In its simplest form, a business plan is a guide or we can call it as a roadmap for your business that outlines goals and how you plan to achieve those goals. The business plan is actually your future story presented in a systematic way highlighting key features. Ideally the plan explains why you think you will be successful leveraging the strengths and the opportunities given the challenges ahead. Now what is the purpose of making this business plan? Now the flavor may vary based on context. Entrepreneurs ready-reigner. It is called as a ready-reigner for the entrepreneurs. It is a dynamic plan that continuously evolves over time. Business plan is prepared for raising the fund, pitching your idea in front of the investors like engine investor, venture capital, incubators, accelerators. Where it focuses on success factors, risk factors and plans to manage them along with exit strategy. You can also take participation in business plan competition. Incubation where you nurture your idea. Accelerator is one form of fundraising. You can invite the customer and you can present your idea. Probably that idea may suit the customer. Mentor connection. So here also you can pitch the idea in front of the mentors in order to get a fund. So potential buyers of your company or acquirer, it is usually in the case of merger and acquisition, you present your future financial deals. Now what are the factors affecting business plan? Four factors critical to every new ventures and they should receive pride of place in your business plan. First is people. Second is opportunity. Third is context. Fourth is risk and reward. People. Now it is seen that most of the venture capital are very much interested in the people. What is the motivation of the people? What is the motivation of the founder member or employees? They are not interested in the product or service. The opportunity. Challenges. What it will sell and to whom? That is what pain you elevate with what efficacy with a competitive advantage. How it will make money? The unique value proposition. The contest. Now it is a present industry scenario. It gives a big picture. The present business scenario with particular reference to the opportunity. The growth prospect of the market segment along with a market structure. The risk and reward. Whole presentation is around risk and reward. Things that can go wrong and the potential gain if the team can do things right. Now similarly, whatever is the motivation to write a business plan, your audience would be interested to know how you navigate through challenges to emerge successful and create value. Your focus must be to bring to light the story of that journey. Now what are the components of business plan? Basically there are two formats of business plan. One is a written format and other is a power point presentation wherein you are going to pitch your idea. First is cover page. So it is said that first impression is last impression. Invest in designing the cover so it stands out. Catch their eyes. That is investor eyes. Should be professional. Should be out of the crowd. Contents. Prepare a one page content in such a way that people do not have time to go through the whole report so they can read it. It tells your audience what to expect in the report. Executive summary. Give it your best shot. Read by everybody. Many people read this one. The business. In the business, background and business mix. How did you get here? The pain point. What is the customer pain point? The market. Why this business? Why now? Where are you now? Next the market and market demand. Segment. Market size. Growth potential. The competition. Channel. Your advantages. Competitive advantage and your value proposition. Strategic operations management. It should be efficient. What are your values? What plans for a lean system? Supply and wire management. The next is the resources. The team. Key skills. In the field of technology. Management. Marketing. And operation. Seven is financial outlets and financial closures. Projected financial. So it gives a gist of profit and loss. Cash flow statement. Break even point. Risk. Which impact on your business. Opportunities and sensitivities. Parameters on which your business depends. Like if cost and selling price varies. Conclusion. So it should be a winning proposition. Appendices. Detailed profit and loss account. Balance sheet. Cash flow statement. Detailed project cost. Market survey report. And other reports. Now this is the template of Harvard Business Review. Notice the similarity. Summary. Business. Market demand. Competition. Strategy. Resources. Financial and forecast. Risk. Opportunities and sensitivities. Similarly this is a template of square capital. So these are the 15 to 20 slides. You can have a template like this. So this is the template for Forbes created by Lavinsky. Just go through pause the video and just go through the template. And these are the references which are used. To create this video. Thank you.