Unit 4:Business plan Formulation

•Need and importance of business plan.

•Marketing plan.
•Business operation Plan.
•Organizational and human resource
plan.
•Financial plan.
•Business plan appraisal.
•Prepare a Business Plan
• A business plan is a formal written document
that outlines the goals and objectives of a
business and the strategy for achieving those
goals.
• It serves as a roadmap for the business,
providing a comprehensive overview of various
aspects such as the business concept, mission
and vision, target market, products or services
offered, marketing and sales strategies,
organizational structure, financial projections,
and more.
Need and importance of Business Plan
• Clarity of Vision and Mission: A business plan helps clarify the
vision and mission of the company. It defines the purpose of
the business and the direction it aims to take.
• Goal Setting: It establishes clear and measurable goals and
objectives for the business. This provides a roadmap for the
company's future and helps in tracking progress.
• Strategic Planning: Business plans involve strategic planning,
outlining the steps the business will take to achieve its goals.
This includes market analysis, competitive research, and a
detailed action plan.
• Resource Allocation: It helps in identifying and allocating
resources efficiently. This includes financial resources,
manpower, technology, and other assets needed to achieve
business objectives.
• Funding and Financing: A well-prepared business plan is
often required when seeking financing or investments.
Investors and lenders use the plan to evaluate the viability
and potential return on investment of the business.
• Risk Management: Business plans force entrepreneurs to
think about potential risks and challenges. Identifying these
risks early on allows for the development of strategies to
mitigate or overcome them.
• Market Understanding: Through market research and analysis,
a business plan helps in understanding the target market,
customer needs, and industry trends. This information is
critical for developing products or services that meet market
demands.
• Operational Guidelines: It provides operational guidelines for
the business, including organizational structure, roles and
responsibilities, and day-to-day operations. This helps in
ensuring smooth business operations.
• Communication Tool: A business plan serves as a
communication tool, both internally and externally. It helps in
conveying the business idea and strategy to employees,
stakeholders, and potential partners.
 Market
• A market is a place where parties can gather to
facilitate the exchange of goods and services.
The parties involved are usually buyers and
sellers.
• The market may be physical, like a retail outlet,
where people meet face-to-face, or virtual, like
an online market, where there is no physical
presence or contact between buyers and sellers.
 Product and service
• Product: A product is a tangible, physical item that is manufactured
or produced for sale. Products can take various forms, including
goods, merchandise, or items that customers can touch, see, and
possess.
• Examples of products include smartphones, clothing, cars,
electronics, and food items. Products are often the result of a
manufacturing or production process, and they are typically sold to
customers through retail or online channels.
 Service
• service, is an intangible offering that is performed or provided by one
party for another. Services involve actions, efforts, or performances
that cater to the needs of customers.
• Unlike products, services are not physical items that customers can
own or possess. Instead, they are experiences, expertise, or
assistance provided by individuals or businesses. Examples of services
include consulting, healthcare, education, hospitality, and financial
advice.
 Target market" and "customers
• Target market" and "customers" are terms often used in marketing to describe different aspects
of a business's audience, but they have distinct meanings.
• Target Market: The target market refers to the specific group of individuals, organizations, or demographics that a
business aims to reach with its products or services.
• Identification: Businesses identify their target market based on factors such as age, gender, income level, geographic
location, interests, and purchasing behavior.
• Purpose: Defining a target market helps businesses tailor their marketing strategies and efforts to better appeal to
the needs and preferences of the identified group.
• Customers: Definition: Customers are individuals or entities that have already purchased or used
a product or service from a business.
• Relationship: Customers have engaged with the business by making a transaction, and they may continue to do so in
the future.
• Focus: While the target market is a broader group that a business seeks to appeal to, customers are those within the
target market who have converted into actual buyers.
 location of a business establishment
• The location of a business establishment is a critical decision that can
significantly impact its success. The choice of location depends on various
factors, and different types of businesses may prioritize different
considerations. Here are some key factors to consider when determining
the location of a business:
• Target Market:
• Proximity to the target market is crucial. Consider the demographics,
behaviors, and preferences of your target customers.
• Analyze the purchasing power and needs of the local population.
• Accessibility:
• Choose a location that is easily accessible to your customers. This includes
considerations for transportation, parking facilities, and proximity to major
roads or public transportation.
 Estimating market share
• Estimating market share involves determining the portion of the total sales or
revenue within a specific industry or market that a particular company or product
holds. Here are several methods commonly used for estimating market share:

• Sales Data and Revenue:

• Obtain sales data and revenue figures for the company of interest.
• Calculate the company's sales as a percentage of the total sales in the market.
• Market share (%) = (Company's Sales / Total Market Sales) x 100.
• Unit Sales:
• Evaluate the number of units sold by the company in comparison to the total
units sold in the market.
• Market share (%) = (Company's Unit Sales / Total Unit Sales) x 100.
 Competitor analysis
• Competitor analysis is a strategic evaluation of a company's rivals within its
industry. The goal is to understand the strengths and weaknesses of competitors
to make informed business decisions. Here are key steps and components
involved in competitor analysis:
• Identify Competitors:
• Identify direct competitors (those offering similar products or services) and
indirect competitors (those in the broader industry or with substitute offerings).
• Consider both current competitors and potential new entrants.
• Gather Information:
• Collect data on competitors through various sources, including their websites,
financial reports, press releases, social media, customer reviews, and industry
reports.
• Focus on key information such as market share, financial performance,
product/service offerings, pricing strategies, marketing tactics, and customer
feedback.
Measures for business promotion
• Measures of business promotion are as follows:
• Personal (face-to-face) selling: In order to win over prospective clients, a
company routinely organizes face-to-face sales presentations delivered by its
representatives. Developing connections with you, on the other hand, is
much less difficult than doing it through any of the other methods.
• Traditional advertising :Running sponsored advertisements of any form will
allow you to reach a broader audience and help you generate quick
interaction and transactions. This can lead to more sales. This type of
marketing is conducted on a one-to-one basis, and the costs connected with it
are decided by competitive bidding.
• i.e.) Print advertising, billboards, TV, radio, etc.
• Direct marketing: It is the process of communicating a message that
is hyper-targeted to a particular audience via the use of many
marketing channels. It provides more possibilities to gather input
from consumers swiftly and sustain interactions with those clients.
• Social Media: You have the option of marketing your wares on a wide
range of platforms available on the internet, each of which grants you
access to a sizeable population of prospective buyers. These days,
practically everyone uses at least one social media network, and two
of the most popular ones are Facebook and Instagram
• Word-of-mouth marketing: It is the process of encouraging individuals to
communicate about your company’s products and services with other
people who are a part of their social networks, such as friends and family.
It will provide qualified leads since consumers trust their friends and
family’s words more than they believe a business’s words.
• Public relations: You are able to handle both positive and negative voices
from customers if you supply appropriate information and do so in order to
construct a favorable image for your company and establish closer
relationships with your customers. If you do this, you can handle both
positive and negative voices from customers.
•
 Marketing plan
• A marketing plan is a comprehensive document that
outlines the specific goals, strategies, and tactics to be
employed by a business or organization.
• In order to promote its products or services, reach its
target audience, and achieve desired marketing
objectives.
• It serves as a roadmap for guiding marketing activities
and allocating resources effectively to maximize the
impact of promotional efforts.
 Importance of marketing Plan
• Focus on your target market: It forces you to think about who your
target market is and what needs and wants they have. This
information is critical in order to develop marketing strategies and
messages.
• Effective utilization of resources: By clearly defining your marketing
goals and strategies, you can avoid wasting time and money on
marketing activities that aren't likely to be effective. A well-thought-
out plan will help you to focus your limited resources on the most
effective marketing activities.
• Measure progress: A marketing plan includes specific measures that
you can use to track your progress over time. This feedback can help
you to adjust your marketing activities as needed in order to achieve
your desired results.
• Framework for making future decisions: As your business grows and
changes, your marketing plan can provide a useful framework for
making future marketing decisions. By referring back to your plan on
a regular basis, you can ensure that your marketing activities remain
aligned with your overall business goals.
 Marketing Mix

•The marketing mix, often referred to as the

4Ps, is a fundamental framework in
marketing that represents the various
elements a business can control to influence
consumers and achieve its marketing
objectives. The 4Ps stand for Product, Price,
Place, and Promotion.
• Product: This refers to the actual goods or services
that a company offers to its customers. It includes the
design, features, quality, branding, and packaging. The
product element is concerned with creating a product
that meets the needs and wants of the target market.
• Price: Price represents the amount of money that
customers have to pay to acquire the product or
service. Setting the right price is crucial, as it affects
the perceived value of the product and influences
consumer behavior. Pricing strategies may involve
discounts, promotions, or bundling.
• Place: Place, also known as distribution, focuses on how the
product or service is made available to the customers. This
involves decisions related to channels of distribution,
logistics, inventory management, and retail locations. The
goal is to ensure that the product is available at the right
place and at the right time for the target audience.
• Promotion: Promotion involves all the communication and
marketing activities used to inform, persuade, and remind
customers about the company's products or services. This
includes advertising, public relations, sales promotions,
personal selling, and digital marketing. The objective is to
create awareness, generate interest, and ultimately drive
sales.
• Additionally, three additional Ps have been added to the marketing
mix over time, especially in the context of services marketing and the
evolving business environment:
• People: In service industries, people play a critical role in delivering
the service. This includes the employees, customer service
representatives, and anyone else who interacts with customers
• Process: Process refers to the systems and procedures that a business
uses to deliver its products or services. It involves the entire customer
journey, from the initial contact to the after-sales service.
• Physical Evidence: This element is particularly
relevant in services marketing and refers to the
tangible cues that help customers evaluate the
intangible service. It includes the physical
environment, facilities, brochures, website
design, and any other tangible elements that
contribute to the overall customer experience.
 Template of Marketing plan
• Executive Summary:
• Business Overview:
• Provide a brief introduction to your company, its mission,
and values.
• Summarize the current state of your business.
• Goals and Objectives:
• Clearly outline your marketing goals (e.g., increasing brand
awareness, driving sales, entering new markets).
• Set measurable objectives to track progress.
• Situation Analysis:
• SWOT Analysis:
• Identify your business's Strengths, Weaknesses, Opportunities, and
Threats.
• Understand internal and external factors affecting your business.
• Target Audience:
• Define your target market segments.
• Provide detailed demographics, psychographics, and behavior
characteristics.
• Marketing Strategy:
• Positioning:
• Clearly define your brand's positioning in the market.
• Highlight what sets your product or service apart from competitors.
• Unique Selling Proposition (USP):
• Clearly articulate the unique benefits of your product or service.
• Explain why customers should choose your offering over competitors'.
• Marketing Mix (4Ps or 7Ps):
• Product:
• Describe your product or service features and benefits.
• Highlight any unique features or innovations.
• Price:
• Determine your pricing strategy (e.g., cost-plus, value-based, competitive).
• Consider discounts, bundles, or promotional pricing.
• Place:
• Outline your distribution channels (online, retail, partnerships).
• Detail logistics and inventory management.
• Promotion:
• Develop a comprehensive promotional strategy.
• Include advertising, public relations, digital marketing, and other tactics.
• Action Plan:
• Marketing Tactics:
• Specify the marketing channels and tools you'll use.
• Provide a timeline for each tactic.
• Budget:
• Allocate resources to each marketing activity.
• Consider both fixed and variable costs.
• Implementation:
• Team Responsibilities:
• Assign roles and responsibilities for executing the marketing plan.
• Ensure clear communication within the team.
• Monitoring and Measurement:
• Key Performance Indicators (KPIs):
• Identify metrics to measure the success of your marketing efforts.
• Set specific targets for each KPI.
• Monitoring and Evaluation:
• Establish a system for monitoring and evaluating the performance of
your marketing plan.
• Adjust strategies based on the results.
• Conclusion:
• Review and Adaptation:
• Summarize the main points of the plan.
• Emphasize the importance of flexibility and
adaptation.
 Requirement of marketing plan
• Set your marketing goals: set realistic and measurable goals to
achieve over the time period.
• Conduct a marketing audit: A marketing audit is a review of all
marketing activities that have occurred in your practice over the past
few years.
• Conduct market research: The purpose of market research is to draw
a realistic picture of your practice, the community you practice in and
your current position in that community.
• Analyze the research: you need to analyze the raw data you collect
and summarize it into meaningful findings that will be the foundation
for determining which marketing strategies make the most sense and
will get the best results for your practice
• Identify a target audience: With the help of your market research
analysis, you should be able to identify your practice’s “target
audience,” which is the specific group of patients to which you’d like
to direct your marketing efforts. Your target audience might include
patients of a certain age, gender, location, payer type or
language/ethnicity and patients with certain clinical needs.
• Determine a budget: Before you can decide what specific marketing
strategies you want to implement to achieve your goals, you need to
examine your financial information and come up with a marketing
budget. Marketing budgets vary by the type of market a practice is in,
the age of a practice and whether the practice has marketed before.
• Develop marketing strategies: With your budget in place, you can
begin to define specific marketing strategies that will address your
goals, reach your target audience and build your patient base
• Develop an implementation schedule: An implementation schedule
is a time-line that shows which marketing actions will be done when
and by whom. The schedule should also include the cost of each
marketing action and how it fits into the budget estimates for the 24-
month period.
• Create an evaluation process: The value of a marketing plan is its
effectiveness, which requires deliberate and timely implementation
and monitoring and evaluation of results.
 Business operational plan
• An operational plan, also known as a work plan, is a
planning method designed to establish, enhance, and
upgrade a firm’s ongoing daily operations.
• It ensures that all activities carried out by the firm are
performed continuously and cyclically, resulting in the
smoother and more timely delivery of services and
products.
• A business operational plan is a comprehensive
document that outlines how a company will conduct
its day-to-day operations to achieve its strategic goals
and objectives.
• Jane owns a marketing business and is looking to grow her company
by 25% over the next two years by working with more clients. To
meet this target, she creates an operational plan:
• Goal: 25% increase in business growth, measured in revenue.
• Timeline: Two years.
• Required resources: Customer service training, increase in phone
lines and extra staff members.
• Tasks: To learn how to engage and advertise to customers over the
phone, to learn how to use email marketing to advertise and to learn
how to network to generate potential leads for the company.
• Budget: £5,000 for two years
• Monitoring technique: Analyzing revenue over the next two years.
Need and importance of operational Plan
• Guides Daily Operations: An operational plan serves as a guide for
daily activities within a business. It outlines the specific tasks,
responsibilities, and processes required to produce goods or services
and deliver them to customers.
• Aligns with Strategic Objectives: The operational plan should align
with the broader strategic goals of the organization. It ensures that
day-to-day activities contribute to the achievement of long-term
objectives.
• Risk Management: Identifies potential risks and challenges
associated with daily operations. This enables the business to develop
strategies for mitigating risks and responding to unexpected events,
thereby enhancing overall resilience.
• Improves Efficiency and Productivity: By clearly defining processes and
workflows, an operational plan helps streamline operations, reduce
inefficiencies, and enhance overall productivity. This is critical for
maximizing output with the available resources.
• Communication and Coordination: Facilitates effective communication
and coordination among different departments and teams within the
organization. A well-defined operational plan ensures that everyone
understands their roles and responsibilities, fostering collaboration.
• Performance Measurement: Establishes key performance indicators (KPIs)
and metrics to measure the success of operations. Regularly tracking these
metrics enables the business to assess its performance and make informed
decisions for continuous improvement.
 Process of product or service creation
• The process of product or service creation are as follows:
1. Idea generation :The initial stage of the product development
process begins by generating new product ideas. This is the product
innovation stage, where you brainstorm product concepts based on
customer needs, concept testing, and market research.
2. Product definition: Once you’ve completed the business case and
discussed your target market and product functionality, it’s time to
define the product. This is also referred to as scoping or concept
development, and focuses on refining the product strategy.
• 3. Prototyping: During the prototyping stage, your team will
intensively research and document the product by creating a more
detailed business plan and constructing the product.
• These early-stage prototypes might be as simple as a drawing or a
more complex computer render of the initial design. These
prototypes help you identify areas of risk before you create the
product.
• 4. Initial design: During the initial design phase, project stakeholders
work together to produce a mockup of the product based on the
MVP(most valuable prototype). The design should be created with
the target audience in mind and complement the key functions of
your product.
• A successful product design may take several iterations(trial) to get
just right, and may involve communicating with distributors in order
to source necessary materials.
5. Validation and testing: To go live with a new product, you first need
to validate and test it. This ensures that every part of the product—
from development to marketing—is working effectively before it’s
released to the public.
6. Commercialization: Now it’s time to commercialize your concept,
which involves launching your product and implementing it on your
website.
By now, you’ve finalized the design and quality tested your
development and marketing strategy. You should feel confident in your
final iteration and be ready to produce your final product.
 Capacity utilization
• Capacity utilization refers to the extent to which a company
or an economy uses its installed productive capacity to
produce goods and services.
• It is typically expressed as a percentage and represents the
relationship between actual output and potential output.
• A capacity utilization rate of 100% indicates that all available
resources are being used to their maximum extent, while a
rate below 100% suggests that there is idle or underutilized
capacity.
 Estimating office overhead and utilities
• Estimating office overhead and utilities involves calculating the costs
associated with running an office space, including utilities such as
electricity, water, heating, and other overhead expenses.
• The specific costs can vary depending on factors like the size of the
office, location, and the nature of the business. Here are steps to help
you estimate these expenses:
• -Rent, Administrative staff, office supplies and equipment, insurance,
maintenance and many others depending upon the nature of the
organization.
 Depreciation
• Depreciation is an accounting practice used to spread the
cost of a tangible or physical asset over its useful life.
Depreciation represents how much of the asset's value has
been used up in any given time period.
• Companies depreciate assets for both tax and accounting
purposes and have several different methods to choose
from. Some of the most popular methods are: Straight-line
Depreciation, Declining Balance Depreciation.
 Amortization
• Amortization refers to the process of gradually
reducing or paying off a financial obligation, such as a
loan or an intangible asset, over a specific period.
• This reduction typically occurs through a series of
periodic payments. The term is commonly associated
with loans, where borrowers make regular payments
that include both principal and interest, resulting in
the gradual repayment of the loan balance.
 Fixed assets
• Fixed assets, are long-term tangible assets that a
business uses in its operations to generate
revenue.
• These assets are not intended for sale, and their
useful life extends beyond one accounting
period. Fixed assets play a crucial role in the
production and delivery of goods and services.
• Examples: Land and building, Plant and
equipment.
Template of business operational plan
• Executive Summary
• Briefly summarize the operational plan in order to provide a quick
overview for stakeholders.
• Operational Objectives
• List the objectives of the operational plan and make sure they align
with the overall business strategy.
• Tasks, Processes, Workflows
• Add the tasks, resources (material and labor) and who is assigned to
each task below.
• Operational Budget :Estimate the cost of the operational plan over
the timeline expected to achieve its objectives.
• Operational TimeLine: The operational timeline is dependent on the
duration of your workflow and processes.
• Hiring Plan: Note any new hires that will be necessary to onboard to
fill in any skill gaps in your organization
• Quality Assurance & Control: To comply with regulatory codes,
customer safety and to save on costs, set up quality management
protocols.
• Key Performance Indicators :In order to measure the productivity of
your operational plan, you’ll have to define any many key
performance indicators (KPIs) to track everything from product
development to marketing, sales and beyond.
• Risk, Assumptions & Constraints:• list any risks, assumptions and
constraints that might impact the execution of your operational plan.
• Evaluation and conclusion: Measure the result and write down the
conclusion.
 Financial plan
• A financial plan is a comprehensive overview of an
individual's, family's, or organization's financial goals and the
strategies to achieve them.
• It serves as a roadmap for managing finances, making
informed decisions, and working toward long-term financial
success.
• A well-structured financial plan takes into account various
aspects of one's financial life, including income, expenses,
savings, investments, insurance, taxes, and retirement
planning.
 Need and importance of Financial plan
• Goal Setting: A financial plan helps individuals and
organizations articulate and prioritize their financial goals.
Whether it's buying a home, funding education, or saving for
retirement, a clear plan provides a roadmap for achieving
these objectives.
• Resource Allocation: By outlining income, expenses, and
savings, a financial plan assists in allocating resources
efficiently. It ensures that money is directed toward essential
needs, savings, debt repayment, and discretionary spending
in a balanced manner.
• Risk Management: Financial plans incorporate strategies for
managing risks through insurance and emergency funds. This
helps mitigate the impact of unexpected events, such as
medical emergencies or job loss, on overall financial stability.
• Retirement Planning: Planning for retirement is a critical
aspect of financial planning. A well-structured financial plan
helps individuals set realistic retirement goals, determine the
required savings, and choose appropriate investment
vehicles to ensure a comfortable retirement.
• Investment Strategy: A financial plan helps individuals determine an
appropriate investment strategy based on their risk tolerance, time
horizon, and financial goals. It guides decisions regarding asset
allocation and investment vehicles to optimize returns.
• Debt Management: Many individuals have various forms of debt. A
financial plan provides a structured approach to manage and pay off
debts, preventing them from becoming overwhelming and hindering
financial progress.
• Peace of Mind: Having a financial plan provides a sense of security
and peace of mind. It instills confidence that there is a structured
approach in place to navigate various financial aspects, reducing
stress and uncertainty.
 Working capital estimation
• Estimating working capital is crucial for businesses as it
helps ensure they have enough liquidity to cover day-to-
day operational expenses. Working capital is the difference
between a company's current assets and current liabilities.
It represents the capital that is used in the regular course
of its business operations.
• Formula of working capital
• Working capital=Current assets –Current liabilities.
• Negative working capital indicates insufficient fund and
positive working capital indicates sufficient fund.
 Pre-operating expenses
• Pre-operating expenses, also known as pre-operating costs
or pre-opening costs, refer to the costs that a business incurs
before it officially starts its regular operations.
• These expenses are associated with the initial setup,
preparation, and organization of the business before it
begins generating revenue. Pre-operating expenses are
considered one-time costs incurred during the planning and
startup phase of a business. They are distinct from ongoing
operational expenses. Common examples of pre-operating
expenses include: Market Research, Business Registration
and Legal Fees:
The per unit cost of a service or product
• The per unit cost of a service or product refers to the cost associated
with producing or providing one unit of that particular item.
Calculating per unit cost is essential for businesses to understand and
manage their expenses, set pricing strategies, and make informed
decisions about production or service levels.
• To calculate the per unit cost, you typically divide the total cost by the
number of units produced or services rendered. The formula is:

• Per Unit Cost

• =Total Cost/Number of Units
•In summary, a financial plan is essential for
setting, achieving, and adapting to financial
goals. It acts as a comprehensive guide,
helping individuals and organizations
manage their resources effectively and work
towards long-term financial success
 Template of Financial plan
1. Executive Summary:
Brief overview of your current financial situation.
Summary of key financial goals.
2. Financial Goals: Clearly defined short-term, medium-term, and long-term
financial goals.
Prioritize goals based on urgency and importance.
3. Income and Expense Analysis:
Breakdown of all sources of income.
Categorization and analysis of monthly expenses.
[Link]:Detailed budget that outlines income allocation for various
expenses.
Identification of areas for potential savings.
Emergency Fund: Explanation of the purpose and size of the
emergency fund.
• Strategy for building and maintaining the fund.
Debt Management: List of existing debts (mortgage, loans, credit cards,
etc.).
Plan for debt repayment, including timelines and strategies.
Savings and Investments: Investment strategy based on risk tolerance
and financial goals.
• Specific investment vehicles (stocks, bonds, mutual funds, retirement
accounts, etc.)
 Insurance Coverage: Overview of current insurance policies
(life, health, property, etc.).
• Recommendations for adequate coverage.
Retirement Planning:
• - Retirement goals and desired lifestyle.
• - Analysis of existing retirement accounts and contributions.
• - Strategies for achieving retirement savings targets.
• Risk Management: - Identification of potential risks
(health, disability, etc.). - Strategies for mitigating and
managing these risks.
• Review and Adjustments: - Schedule for regular
reviews and updates to the financial plan. -
Consideration of life changes and adjustments to the
plan as needed.
 Organizational and human resource plan.
• Human resources is the division of a business that is charged with
finding, recruiting, screening, and training job applicants. It also
administers employee benefit programs.
• Human resource management (HRM) is the practice of recruiting,
hiring, deploying and managing an organization's employees. HRM is
often referred to simply as human resources (HR).
• A company or organization's HR department is usually responsible for
creating, putting into effect and overseeing policies governing
workers and the relationship of the organization with its employees.
 Human resources Planning
• Human Resource Planning (HRP) is the process of systematically
reviewing HR requirements to ensure that the required number of
employees with the required skills is available when they are needed.
• Human resource planning is “an integrated approach to performing
the planning aspects of the personnel function in order to have a
sufficient supply of adequately developed and motivated people to
perform the duties and tasks required to meet organizational
objectives and satisfy the individual needs and goals of organizational
members.”
 Need and importance of human resources
planning
• Assessing Future Personnel Needs: Whether it is surplus labor or
labor shortage, it gives a picture of defective planning or absence of
planning in an organization. A number of organizations, especially
public sector units (PSUs) in India are facing the problem of surplus
labor.
• Foundation for Other HRM Functions' is the first step in all HRM
functions. So, HRP provides the essential information needed for the
other HRM functions like recruitment, selection, training and
development, promotion, etc.
• Coping with Change: Changes in the business environment like
competition, technology, government guidelines, global market, etc.
bring changes in the nature of the job. This means changes in the
demand of personnel, content of job, qualification and experience
needed. HRP helps the organization in adjusting to new changes.
• Investment Perspective: As a result of change in the mindset of
management, investment in human resources is viewed as a better
concept in the long run success of the enterprise. Human assets can
increase in value as opposed to physical assets. Thus, HRP is
considered important for the proper planning of future employees.
• Expansion and Diversification Plans: During the expansion and
diversification drives, more employees at various levels are needed.
Through proper HRP, an organization comes to know about the exact
requirement of personnel in future plans.
• Conformity with Government Guidelines: In order to protect the
weaker sections of the society, the Indian Government has prescribed
some norms for organizations to follow.
 Roles and responsibility of Staff
• The roles and responsibilities of staff within an organization can vary
depending on the nature of the business, industry, and the specific
job positions held. However, there are some common roles and
responsibilities that apply to many staff members across different
organizations. Here is a general overview:

• 1. Job-Specific Tasks:
• Perform tasks and duties associated with their specific job role.
• Complete assignments in a timely and efficient manner.
• 2. Team Collaboration:
• Work collaboratively with colleagues to achieve team goals.
• Communicate effectively and contribute to a positive team environment.
• 3. Communication:
• Clearly and effectively communicate with colleagues, superiors, and
subordinates.
• Share relevant information and updates in a timely manner.
• 4. Time Management:
• Prioritize tasks and manage time effectively to meet deadlines.
• Demonstrate an ability to balance multiple responsibilities.
• 5. Adaptability:
• Be flexible and adaptable to changes in the work environment.
• Willingness to learn new skills and take on new responsibilities.
• 6. Accountability:
• Take ownership of tasks and responsibilities.
• Be accountable for the quality and accuracy of work.
• 7. Problem-Solving:
• Identify and address challenges or problems that arise in the course of
work.
• Propose solutions and collaborate with others to implement them.
 Management structure
• The management structure of an organization outlines the hierarchy
and relationships among different levels of management and
employees. The structure defines the roles, responsibilities, and
reporting relationships within the organization. Various types of
management structures exist, and the choice of structure depends on
the organization's size, industry, culture, and strategic goals. Here are
some common types of management structures:
• Functional Structure:
• In a functional structure, the organization is divided into functional areas such as
marketing, finance, operations, and human resources. Each functional area
operates independently, and employees report to functional managers.
• Divisional Structure:
• A divisional structure organizes the company based on products, services,
geographic regions, or customer segments. Each division operates as a separate
business unit with its own functional departments and leadership.
• Matrix Structure:
• The matrix structure combines elements of both functional and divisional
structures. Employees report to both functional managers and project managers
simultaneously, allowing for more flexibility and better communication across
departments.
Required human resources and associated
costs
• Determining the required human resources and associated costs for a
project or business operation involves careful planning and analysis. Here
are steps to estimate the required human resources and their costs:
• 1. Identify Project Requirements:
• a. Define Project Scope:
• Clearly define the scope and objectives of the project or business
operation. This will help identify the tasks and activities that need to be
performed.
• b. Breakdown Tasks:
• Break down the project into smaller tasks or activities. This will help in
identifying the skills and expertise required for each task.
• 2. Determine Human Resource Needs:
• a. Skill Requirements:
• Identify the skills and expertise needed for each task. This may include technical
skills, project management skills, communication skills, etc.

• b. Estimate Workload:
• Determine the estimated workload for each task in terms of hours or days required.
Consider factors like complexity, urgency, and dependencies between tasks.

• c. Calculate Full-Time Equivalents (FTEs):

• Convert the workload into the number of full-time equivalents needed. For example, if a
task requires 80 hours of work and a full-time employee works 40 hours per week, the
task would require 2 FTEs.
3. Cost Estimation:
• a. Salary and Benefits:
• Determine the average salary for each role or skill set required.
• Include employee benefits such as health insurance, retirement
contributions, and other perks.
• b. Recruitment Costs:
• Consider the costs associated with recruiting and onboarding new
employees. This may include advertising, interviewing, and training
expenses.
• c. Overhead Costs:
• Include overhead costs associated with each employee, such as office
space, utilities, equipment, and administrative support.
• d. Contingency:
• Add a contingency factor to account for unforeseen circumstances or
changes in project scope.
• 4. Total Cost Estimation:
• Calculate the total cost by summing up the salary, benefits,
recruitment costs, overhead costs, and contingency for each role or
skill set. Multiply this by the number of FTEs(Full time equivalence)
needed for each task.
• 5. Review and Adjust:
• Regularly review and adjust the estimates based on changes in
project requirements, market conditions, or any other factors that
may impact costs.
Template of Human resources plan
• 1. Executive Summary:
• Brief overview of the organization's current workforce situation.
• Summary of key HR goals and strategies.
• 2. Organizational Overview:
• Overview of the organization's mission, vision, and strategic goals.
• Description of the organizational structure and any relevant changes.
• 3. Workforce Planning:
• Assessment of current workforce demographics.
• Anticipated changes in workforce size and composition.
• Strategies for attracting, retaining, and developing talent.
• 4. Recruitment and Staffing:
• Identification of key positions to be filled.
• Recruitment strategies and sources.
• Timelines for the recruitment process.
• 5. Training and Development:
• Training needs analysis.
• Employee development programs.
• Budget for training initiatives.
• 6. Performance Management:
• Performance appraisal process and timeline.
• Recognition and rewards programs.
• [Link] and Inclusion:
• Policies and initiatives to promote diversity and inclusion.
• Training programs on diversity and cultural sensitivity.
• 9. Compensation and Benefits:
• Overview of the organization's compensation philosophy.
• Benefits packages and any changes or enhancements.
• Salary review and adjustment timelines.
• 10. HR Technology:
• - Evaluation of current HR systems and tools.
• - Plan for implementing or upgrading HR technology.
• - Integration of technology for better HR processes.
• 11. Risk Management:
• - Identification of potential risks related to HR initiatives.
• - Strategies for mitigating and managing risks.

• 12. Communication Plan:

• - Communication strategies for informing employees about HR changes.
• - Internal communication channels and frequency.

• 13. Conclusion:
• - Summary of the overall HR plan.
• - Next steps and any additional considerations.
Legal Status of Business/venture Registration
• Companies in Nepal are registered according to Nepal Company Act, 2063.
To get a legal status one should complete the following steps.
1. Verify the uniqueness of the proposed company name in the Office of the Company
Registrar
• In the first step of company registration, the uniqueness of the proposed company name
should be verified in the Office of the Company Registrar. Verification of the uniqueness
of a company name can be done online as well. To reserve the available company name,
the company must submit an application to the Office of the Company Registrar. The
company name reservation can also be completed online for no charge.
• 2. Verification and certification of the memorandum and articles of association
Entrepreneurs normally use the services of professionals in practice for verifying and
drafting the memorandum (legal document why the organization was founded)and articles
of association(A document that specifies the regulation for a company operation and
define the company purposes. This is mainly done to avoid mistakes.
[Link] a stamp to be attached to registration form: The company
founders can buy a stamp to be attached to the registration form for
Rs. 5 or 10 from the Post Office.
4. Register at the Office of the Company Registrar, Department of
Industry: To register a company, the promoter must submit an
application as prescribed. Online filing of the required documents has
been introduced and made mandatory. After the online filing,
entrepreneurs are required to visit the Office of Company Registar and
submit all the original documents for further verification.
• Make a company rubber stamp:
• Company founders can make a company rubber stamp at the Seal maker.
• 6. Register for VAT and income Tax at the Inland Revenue Office, Ministry
of Finance
• According to the Value Added Tax Act 2052, the company must disclose the
office address to the tax office. If the company's objectives include goods
or services subject to VAT, both registrations (VAT and income tax) should
be obtained simultaneously.
• 7. Enroll the employees in the Provident Fund
• Every month, 10% is deducted from the basic salary of each employee,
matched by a contribution from the employer.
 Business plan appraisal
• Business plan appraisal involves a comprehensive evaluation of a
business plan to determine its feasibility, potential for success, and
overall value. Here's a step-by-step guide on how to appraise a
business plan:
• Executive Summary:
• Assess the clarity and completeness of the executive summary.
• Check if it effectively summarizes the key elements of the business
plan, including the business idea, market opportunity, and financial
projections.
• Business Description:
• Evaluate the business concept and its uniqueness.
• Assess the clarity of the problem the business aims to solve and the
value proposition it offers.
• Market Analysis:
• Examine the market research and analysis.
• Assess the size, trends, and dynamics of the target market.
• Organization and Management:
• Review the qualifications and experience of the management team.
• Assess the organizational structure and key roles.
• Determine if the team has the necessary skills to execute the business
plan.
• Product or Service:
• Evaluate the features, benefits, and uniqueness of the product or
service.
• Assess the potential market demand for the offering.
• Marketing and Sales Strategy:
• Review the marketing and sales plans.
• Assess the target customer segments and the effectiveness of the go-to-
market strategy.
• Evaluate sales forecasts and customer acquisition costs.
• Financial Projections:
• Scrutinize the financial projections, including revenue, expenses, and
profitability.
• Assess the reasonableness of assumptions and the credibility of the
financial model.
• Evaluate the break-even point, payback period, and return on investment.
• Risk Analysis:
• Identify and assess potential risks and challenges.
• Evaluate the mitigation strategies and contingency plans outlined in the business
plan.
• Implementation Plan:
• Review the timeline and milestones for plan execution.
• Assess the scalability of the business model.
• Evaluate the operational plan for bringing the product or service to market.
• Exit Strategy:
• Determine if there is a clear exit strategy for investors.
• Assess the potential return on investment for stakeholders.
• Legal and Regulatory Compliance:
• Ensure the business plan addresses legal and regulatory
requirements.
• Evaluate potential legal risks or challenges.
• Appendix:
• Review any additional documentation, market research, or supporting
materials provided in the appendix.
 Need and importance of Business plan
appraisal
• A business plan appraisal is the process of evaluating and assessing a
business plan to determine its viability, effectiveness, and potential for
success. This process is crucial for several reasons:
• Critical Evaluation: Appraising a business plan involves critically examining
every aspect of the plan, including the business idea, market analysis,
financial projections, and operational strategies. This helps identify
weaknesses, inconsistencies, or areas that require improvement.
• Investor Confidence: For entrepreneurs seeking funding or investors, a
well-prepared and thoroughly appraised business plan can instill
confidence. Investors want assurance that their money is being invested in
a well-thought-out and viable business. A comprehensive appraisal helps to
build trust.
• Risk Mitigation: Identifying potential risks and challenges early on allows
businesses to develop strategies for mitigating those risks. A thorough
appraisal helps in anticipating obstacles and planning for contingencies,
reducing the likelihood of unforeseen issues disrupting operations.
• Strategic Alignment: The appraisal process ensures that the business plan
aligns with the overall strategic goals and objectives of the company. This
alignment is crucial for effective execution and achieving long-term
success.
• Operational Efficiency: A well-appraised business plan considers the
operational aspects of the business, ensuring that resources are utilized
efficiently. This includes assessing the scalability of operations and
identifying areas where efficiency can be improved.
• Adaptability: Markets and business environments are dynamic, and
plans need to adapt to changes. Regular appraisals allow businesses
to update and adjust their plans in response to changing market
conditions, technological advancements, or other external factors.
• Communication Tool: A well-prepared and appraised business plan
serves as a communication tool, both internally and externally. It
helps convey the business vision, strategy, and goals to stakeholders,
employees, and potential partners.
 Break even analysis
• Break-even Analysis is an economic concept that is used to determine
the number of units that needs to be sold by the company to cover
the costs and gain no profits. It is the level of units that a company
should at least reach in order to survive in the market.
• Break-even is a level where a company neither earns any profits nor
suffers any losses. Basically, the break-even point tells us the units to
be sold in order to cover costs. The users of break even analysis are:
Entrepreneurs, Financial Analysts, Investors.
 Return on Investment
• Return on investment (ROI) is a performance measure used to
evaluate the efficiency or profitability of an investment or compare
the efficiency of a number of different investments. ROI tries to
directly measure the amount of return on a particular investment,
relative to the investment’s cost.
• To calculate ROI, the benefit (or return) of an investment is divided by
the cost of the investment. The result is expressed as a percentage or
a ratio.
Risk Factor while preparing Business plan
apprasial
• While preparing a business plan, it's important to consider and address various
risk factors that could impact the success of your business. Here are some
common risk factors to be mindful of:
• Market Risks:
• Market demand: Changes in customer preferences, economic conditions, or
industry trends can affect demand for your product or service.
• Competition: Intense competition or the entry of new competitors can impact
your market share and profitability.
• Operational Risks:
• Supply chain disruptions: Dependence on a single supplier or issues in the supply
chain can lead to delays or shortages.
• Production issues: Problems in manufacturing or service delivery can affect the
quality and timely delivery of your offerings.
 Book keeping System/account keeping
• Bookkeeping is the process of recording your company’s financial
transactions into organized accounts on a daily basis. It can also refer
to the different recording techniques businesses can use.
• Bookkeeping is an essential part of your accounting process for a few
reasons. When you keep transaction records updated, you can
generate accurate financial reports that help measure business
performance. Detailed records will also be handy in the event of a tax
audit. Types of book keeping system: Single-entry bookkeeping,
double entry book keeping system.
 Market demand
• Market demand refers to the total quantity of a
good or service that consumers in a specific
market are willing and able to purchase at a
given price and during a particular period. It is
essentially the aggregate of individual demands
within a market.
Structure/Format/outline/Template of a
Project report
• TABLE OF CONTENT
• Acknowledgement
• Table of contents
• List of Table
• List of Figure
• Abbreviations

CHAPTER-ONE: Introduction(ABOUT THE REPORT )-objectives, importance, limitation.

CHAPTER 2:REVIEW OF LITERATURE(Study about the previously done research on the same topic)
CHAPTER-3: RESEARCH METHODOLOGY(data collection primary or secondary )
CHAPTER4:PRESENTATION AND DATA ANALYSIS(Analysis the data using different tools)
CHAPTER5:CONCLUSION AND RECOMMENDATION(conclusion and recommendation for the future )
• Financial Risks:
• Cash flow: Insufficient cash flow can lead to financial difficulties. It's
crucial to manage working capital effectively.
• Debt and financing: High levels of debt or difficulties in securing
financing can strain your financial position.
• Regulatory and Legal Risks:
• Compliance issues: Failure to comply with regulations can result in
fines or legal actions.
• Changes in laws: Shifts in legislation or regulations can impact your
business operations.
• Technological Risks:
• Obsolete technology: Relying on outdated technology
may hinder your ability to compete and adapt to
market changes.
• Cybersecurity: The risk of data breaches or cyber
attacks can compromise sensitive information.
• Economic Risks:
• Economic downturn: A recession or economic
instability can lead to reduced consumer spending and
business investment.
• Political Risks:
• Political instability: Changes in government policies or
political unrest can affect business operations.
 Action Plan
• An action plan is a detailed, step-by-step document that outlines the
specific tasks, activities, and timelines needed to achieve a set of
defined goals or objectives.
• It is a practical guide that helps individuals or organizations move
from the conceptual stage of planning to the actual implementation
of their plans. The purpose of an action plan is to provide clarity and
direction, ensuring that everyone involved in the process understands
what needs to be done and when.
Format of action Plan
 Writing a Business plan
[Link] Summary
[Link] Analysis
[Link] Description
-company summary
-objectives
-Mission
-key partnership
[Link] Analysis
[Link] economics of the business
Financial plan
-important assumptions
-Breakeven analysis
[Link] Plan
-Sales Strategy
-Sales Forecast
[Link] and development plan
[Link] Plan
[Link] team
[Link] Schedule
[Link] Projections
-Projected profit and loss
-Projected Balance sheet
-Projected cashflow
-Business Ratios
12-Appendix
Thankyou