How to Plan Your Business


I was totally lost because I didn’t knew how to start something they are sir what I found was I got everything together at one place it was a one-stop shop for me like I got all the information regarding anything and everything in the ass my business is beacon of peace now and it’s being faster [Music] it takes a village to get a business off the ground and a village to sustain it this is especially true for small businesses it involves processes such as getting funding to managing the legal aspects of the business to marketing and even performing basic organizational tasks it also requires passion a lot of hard work access to relevant information and support [Music] since the objectives of the asana to work at scales we want to create two self-employed people and entrepreneurs we must also look at how many people have we been able to help as an ecosystem this is going to take some time and effort and over a period of time the number of entrepreneurs we have helped and also how well have we helped an individual entrepreneur both of these are important factors when we look at the successor they asked the Astra foundation is a not-for-profit company it’s an organization that is set up based on the vision of dr. Allen Deshpande MB CEO and founder of persistent systems essentially the whole point of the Astra foundation is to provide a complete ecosystem which can support small business on whether they want to start their business or whether many people manage the businessman in an organized fashion we provide information step by step guidance and services at the right time right Aust and best quality are with the success imagine if you had a lighthouse showing you the way as you make the brave decision to chase your business dreams a voice of reason that would guide you and help you to connect with different like-minded people all willing to help you set up your business by supporting enterprises to achieve success the Astra aims to create more opportunities a not-for-profit organization the Astra tools and knowledge resources are available online at www.studiocitymailboxes.com provides an interactive enough is to face partner or through phone or the Astra has a network of professional service partners that includes funding houses and banks to legal advisors and marketing support partners that we connect with entrepreneurs and they are sera we are trying to create a culture of support and encouragement for entrepreneurship this includes providing information motivational stories and guidance to the larger group through our magazine jesh a suite with yoga and a variety of symposiums and workshops such as this one we are developing faster than ever and yet the rate of employment doesn’t seem to match the pace daiara is on the ground doing our part in trying to change that by helping people in setting up managing and growing their business our role is to demystify the idea of entrepreneurship think affair – this way our role in your business is that of a supportive friend stepping in as and where you need are helping out [Music] hello and welcome to the dais our star ticket program many of you have completed your technical training and are now thinking of using this skill to convert it into a business idea and go full-blown business this idea is so precious and valuable to you that you have been thinking of it over and over and again until you find ways to finally start an enterprise you are about to make a big choice in length if your wish to become an entrepreneur is strong enough if you are focused enough and if you know specifically what you want to do then let me tell you this is a valuable beginning and boy this is where you need a step-by-step process a well-crafted plan and a deal is seen mechanism and much much more you put your thoughts into action I’m sure you’ve seen people around you who wish to start a business or who are actually running it and have a hard time figuring out how to begin and how to be successful now how do you solve it for yourself is it the internet I mean everything is available on the net and you can pull any information from anywhere it’s all there it’s all in one place but is it authentic and you sit in one place finally I am afraid know someone have to research it someone has to wet it and stack it up neatly for you to pick up precisely what you need and when you mean it we have done this exactly for you it is incredible how a structured approach and a well research process can make a phenomenal change in the way you start an enterprise and also the way you would run an enterprise it does make a difference so how do we solve it is it all available in some place oh yes it is let me give you a glimpse of it through a short video titled plan your business this is one of the many tools and resources that are available on the website they are not in to visit it also remember we love feedbacks so when you finish watching this video feedback it’s a short form on the right-hand of the video put your name put your email because once we have your email we’ll be able to inform you when our free webinars are and you will be able to witness it be a part of the movement join the asana create jobs thank you hey today we are going to see how to plan a business so welcome to the first chapter this chapter will explain the need prerequisites and components of a business plan why is business planning required business planning helps in defining the goals and the steps required to be taken for seen now the need for business plan is it defines the purpose vision and process of starting a business activity it helps to prioritize your objectives in a well-defined manner it identifies the resources that are required for implementation and last but not the least it aids in procuring loans from the financial institutions going ahead we will see the prerequisites to plan a business first idea it can either be completely new or tested or tried one knowledge and skills of the decided business activity are always mandatory third investment capacity that has to be figured out before starting a business or at an initial stage that is the planning stage ideal business place or location has to be selected considering the type of the business and the target group of customers support and family background there is always an add-on and also helps to boost the morale now going ahead we will see components of a business plan business plan helps an entrepreneur in designing the roadmap it includes different components such as executive summary which means an overview of the key points of a business plan next business details that is business name its location and supporting key members next competition study and marketing strategy which means analyzing competitors and study market conditions SWOT analysis means studying the strengths weaknesses opportunities and threats defining a product and service which means to identify your target customers make a list of product and services and decide competitive prices next estimate costs that includes startup cost equipment furniture and fittings layout process contingencies working capital etc estimate cash needs that includes expenses such as purchase of raw material administrative cost salary and wages etc estimate sales that is projection of achievable sales sales revenue which is based on historical sales data that is in case of existing business and analysis of market service and new trends in case of new businesses next comes basic compliances that has to be listed while planning a business such as shop act or NOC from gram panchayat pan card rent agreement or same deed of the business premises current bank account last comes different sources of funds such as own capital loans or deposits from friends and relatives bank loan which is term loan and working capital and different government schemes let’s go ahead with chapter 2 which will cover steps of business planning now we will see what is executive summary exhibit of summary is a section where each step of a business plan is summarized it also contains brief statements describing the actionable stated in the business plan now let us see first three steps of business planning step number one describe the business details step number two define product and services step number three study the competition and marketing strategy now we will see step number one in detail first business activity it includes identifying the primary purpose or an objective of a business that is product or services that has to be offered suitable name should be decided and aligned to the business activity business location should be convenient and easily accessible to the target group of customers investment capacity has to be analyzed in terms of raising own funds and identifying sources of funds fall further requirement key team members have to be identified considering their expertise area let’s go ahead with step number two define product and services defining a product and service means deciding or identifying the same in line with the business activity writing its full description and highlighting or detailing its benefits and need now let us see factors that are to be considered while defining a product or a service first product which includes whether the customer is going to benefit from it second it has to be modified or enhanced and the last one it has right features and set feedback process force in second price which includes whether item considered is an everyday purchase and is affordable whether there is an established price structure for products and services like yours in the market third one which is place which includes whether physical location is easy to locate next one the product services are sold online step number three three Competition study and marketing strategy competition study means analyzing both the current competition and the potential competitors and understanding their strengths and weaknesses now let us see factors to be considered while doing competition study where are the competitors located that is competitors location how long they are into the business what are their unique selling point now let us see marketing strategy it is an approach for reaching people and converting them into customers of the product or service that the business provides there are five important aspects to be considered while planning a marketing strategy let’s check them first one offline integration which means enabling the business to be there when the customers are in need of the product or a service traffic building which is a method of attracting customers to the product or service social media presence which means actively increasing your existence amongst large number of audiences website designing it encompasses of different aspects such as web page layout content creation and graphic design tactics includes sales discounts promotional support or any other required support which motivates the customer to buy the product or avail the service let’s go ahead with chapter 3 which will cover further steps of business planning let us see steps of business planning step number 4 estimate sales step number 5 estimate cash needs and step number 6 estimate costs now let us see all the steps in detail step number 4 which is estimate sales estimate sales means analysis of market service entrance in case of new business projections of sales revenue which may be based on historical sales data and study of future market trends in case of existing business now we will see problems faced while estimating sales estimating accurate sales for a new business is difficult as it does not have sales history or any statistics all the factors are not considered due to which businesses often overestimate their future sales volume and underestimate the amount of money required to start the business now let us see how can one estimate sales it is derived by analyzing the size of the market for the product or service sales result that have been achieved by other competitors of the business the market gap where the business or the company is able to identify the space that remains to be pursued and it’s likely market share now let’s see a case or let’s take an example mr. Garre sunny has started a new business of mobile accessories now how is he going to estimate sales considering the products by forecasting number of units to be sold per month accordingly based on the price per unit he will estimate the sales per month by multiplying number of units and price per unit about estimation is limited for a month however going further surely projection is done considering the highs and lows of the future market conditions step number five estimate cash needs estimate cash needs means studying the yo leaf inflow and outflow of the cash it includes early or day-to-day income and expenses such as inflow which had which means cash sales credit sales realized other inflow of funds such as loans borrowing etc now flow such as electricity expenses purchase of raw material salary and wages repairs and maintenance costs etc now let us see this step number six estimate costs estimate cost means capital cost which are fixed and one-time expenses for setting up the business it includes startup cost that is in corporation expenses promotional expenses and licenses such as pan tan other mandatory licenses also such as shop at etc purchase of land and building plant and machinery vehicle etc deposits if the business place is rented furniture and fixtures cost contingencies contingencies are those which arise depending upon the occurrences where the outcome is uncertain which is due to overrun of cost and time working capital which is equal to all current assets also known as gross working capital whereas net working capital is calculated as current assets minus the current liabilities let’s go ahead with chapter four which will cover viability and feasibility check now let us see what is business visibility and viability and also we will cover different aspects used to study facility and viability of a business what is business visibility and viability business visibility means ensuring the practicability of the business and viability means ensuring or measuring the ability of a business to survive as well as to sustain profits over a period of time business idea should be unique or tried on a tested one and should be measured on different parameters such as first technical second economic third financial fourth commercial and fifth there are some other parameters now we will see all the five parameters in detail technical which includes analyzing the capacity of the business considering the business activity if manufacturing than the production capacity and if its service related then the service delivery capacity next ensuring the availability and quality of required resources such as raw material labor etc availability of infrastructure like suitable place machinery equipment furniture fixture electricity water etc now let’s go ahead with the second parameter which is economic and it includes study of market size for the product or a service study of competitors future trends pattern of demand and supply available gap identifying likely market share third parameter which is the financial it includes procurement of fixed assets and means to raise the funds fourth is commercial and it includes important parameters such as sales revenue the running cost that is the day-to-day cost study of profitability break-even point and return on investment so these five parameters are important and there are certain other checks such as to ensure proper management under proneural skills knowledge and experience and compliances and legalities as per the business requirement now we are on our last segment or the last chapter which covers basic compliances and sources of funds so let us see what is compliance compliance is a Durance to the legal and regulatory standards applicable to their business it is important as it reduces an overall risk of being non-compliant now why should a business be compliant for smooth running to avoid penalties legal actions stoppages of a business to generate customers confidence in your business let us see few of the basic compliances first shop act or an OC from gram panchayat pan card current bank account rent agreement or a sale deed of the business premises certain trade specific compliances for example food business fssi license or registration import an export business import-export code with yogaha in case of existing businesses only certain entity specific compliances such as partnership form partnership deed for LLP LLP deed etc and the last one that is GST registration wherever applicable now let us see what do you mean by sources of funds now we are heading towards the last segment of this chapter which is very important generally businesses cannot come into existence if not supported by proper means of finance finance is raised through different means such as equity borrowings etc for a business activity are known as sources of funds it is also required to avail funds from sources at best rate of interest in order to maintain profitability of the business so different sources of funds are own capital loans or deposits from relatives and friends bank loan that is term loan and working capital loans under different government schemes seed funding and crowdfunding now we will see two sources of funds in detail first one which is owned capital as the name well goes should be brought into the business by the proprietor partners directors from their individual savings or sources it should be invested into the business for a longer period of time that is almost on perpetual basis 1 capital plays an important role we’re in the business owner seeks funds through different sources and is asked for certain centage of margin money now let’s go ahead to the bank loan bank loan can be short-term loan as well as a long term loan short-term loan is required for meeting day to day expenses purchasing raw material paying bills salaries etc whereas long-term loans are taken for purchasing fixed assets such as land and building plant and machinery etc so banks and financial institutions have different schemes under which such loans are sanctioned also certain notified banks provide loans under various government schemes now we will quickly recall all the chapters of how to plan your business chapter number one that covered need prerequisites and components of a business plan chapter number two described the first three steps of business planning chapter number three continued with the further three steps of business planning chapter number four explained the feasibility and viability of the business and chapter number five concluded with the basic compliances and sources of funds thank you

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