Business development plan I – Introduction 1. Introduce the business idea 2. Background to the industry 3. Rationale (why do you think that is a good idea) 4. Aim 5. Objectives 3 or 4 6. Signposting – description of chapters II – Business concept chapter 1. Description of the business 2. Description of the product or service 3. Description of target customers 4. Opportunity 5. Positioning 6. Value addition 7. Organisational Structure III Literature review same as above IV Methodology as above V Data analysis and findings 1. Internal and external analysis 2. Operations (ex. From supplies to end product) 3. Marketing 4. Marketing mix 5. HR strategy VI Evaluation of the business plan 1. Financial forecast Budget, Income, capital investment, balance sheet, cash flow, profit or loss estimate for 2 or 3 years For BDP Name of the business, nature of business, Location, unicity of business USP Here is the whole context of guidelines- Please Read it Project 1 Business. Second, give details about the product or service that you're offering. Okay? Please don't put things like description of product and service. You can confuse people. Okay. But be quite, um, specific to what you're doing. So description of the product or service that you're actually offering. The third thing you're looking at would be tell us who your target market is. Who are your target customers. And this is where you have to be quite specific in terms of things like, say, segmentation. Give us details about things like, I don't know, a gender location, for instance, you know, what kind of mindset do they have? What are they looking for? What are the expectations? Give some description about the customers themselves. Exactly. Once you you've got past those descriptions overall, then we're looking for things like say um, what are what is the value that your business, uh, is providing. I just don't see the restaurant. The question I ask is why should I come to your restaurant? What is different about your restaurant's competitors? If you're telling me, for instance, you're going to be serving fried chicken and burgers. There are lots of people serving fried chicken. So what is different about you? What is the value? What is different about your business is what we're looking over here. And that needs to relate to the next section which is called opportunity. What is the business opportunity in that market space that you are capitalizing on? Because I'm sure this is something you learned in Ebrd. Did you learn about opportunities in the market space? So what is the opportunity that you have been able to identify? And then what is your positioning? How are you positioning your business? For instance, is it meant for everybody or is it meant only for a specific group of people, which hopefully would have covered it under the, uh, target market part? Is it going to be like a mass product or is it going to be a luxury product, for instance? You know, if you're coming from this is where the positioning issues come into the picture. Okay. What are people going to think about your business? Um, the way you're going to project, it's a bit like, you know, how is how does Primark position itself? It is meant to be extremely affordable. It is meant for the masses, meant for everybody. It's meant as a family brand. Gay men, men, women and kids. You know everybody. And you find it's not just a clothing store. It's like a home store. They're selling a whole variety of different products. It's about how people see you as a business. How are you going to position yourself as a business owner? Oh yeah. One more important thing about Primark is location. They try to ensure that you don't struggle too much to get to a Primark. You know it's not too far away. That's the thing. So hopefully that makes sense. All this comes into your own is your organisational structure. For instance, uh, going back to the restaurant example. I'm sure you can't do everything by yourself. You'll have to employ people. Yeah. You'll have people who are probably going to be doing the serving, cooking, accounting, cleaning. We want to see an organizational chart. How many people in which departments and what positions are in this? Okay. So that needs to come into your chapter. Is that for instance everybody? Yes. These two. All right. Okay. So just to run through the once again description of the business, description of the product or service that you're offering. Description of your target segment. And please focus on segmentation. Also talk a bit about the business opportunity, the value that is being provided. The positioning that your business is adopting. The organizational structure. Okay. So please ensure that you cover these different details. And again it's a little over 1000 words but maybe maximum 1005. But I hope you can see you need to compress all of these into that space. Chapter three literature review. Yes, sir. The business concepts. Um, I think it should be close to 2000 because, well, these are guidelines. These are kind of word counts. But the whole point is don't go ahead and write 5000 words on it. That's the that's the point that you're looking at. You need to cover these errors. But you've got a word count of 12. So I think needs to come within that particular section. Chapter three. You already spoken about it. Concepts, theories and models. And again, keep in mind concepts, theories and models that will relate to your work and you will be using later on in your work. You'll be applying this. So it's also an application okay. And like I said earlier on, please don't put in models for the sake of putting them in. That's not necessary. Um, chapter four is methodology, which I've already spoken about. And I told you there are five questions you need to ask yourself. So same thing applies over here. So please keep in mind that you have to respond to those five questions in chapter four. So yes, um, I do uh, do you say that, uh, what you said chapter three is a concept research and model concept theories and models. So how do you mean about models? Models are things like Porter's five forces. So, for instance, you know, cage is role models, isn't it? See, you find that the word is very similar to the concept of theory. It's not like, you know, it's very different from it, but it's just a different terminology being used. Um, chapter four methodology like you're actually looking at, you know, what are the methods used and so on and so forth. Chapter five analysis of the business model. And this is again, you can see it's quite important. 3000 words again. Why. Because here you're describing how the business works how the business is going to operate. Now what are the fundamental things that you need to cover in this particular section? First is before you get to the work in your business, I'm sure you remember this from EBD as well as GSM last term. Whenever you run a business or start a business and you're building a strategy for it. The two things that you have to do two levels of analysis. First is internal. Second is external. So you need to have an internal analysis of your business. Look at things like say what are the strengths, what are the weaknesses, what are the resources. What are the skills or the capabilities. You need to look at those things. The second thing is will be external analysis, external analysis, something which you're all generally aware of. You use a model, use theory which you go ahead and apply, and you have to choose one that you described in your literature review. What model you choose is up to you. So do we have to choose only one model or we can use up to 2 or 3. Again, three three is an overkill. Okay. Again it's like the buffet in a restaurant. There's only so many dishes you can eat because your tummy can only take in so much. Same thing with you. You got 12,000 words. If in case C, let me jump to the external analysis. What are different models that you have? Study is the best tool okay. Okay. That's like you know really good use that anymore. Sorry. Best tool. Anything else? Uh, the new version of the steeple. The newer version of steeple. Steeple. You might have seen diamond model. You might have seen Porter's Five Forces. You might have seen cage model. My point is, there are different models that are there. Now, if you were to go ahead and choose Castle and then steeple, I'd say that's a bad decision because steeple is just an extension of Pestel. But if in case, let's say an example, you choose Pestel and you choose five forces. Now Bethel is more about the environment in general. Five forces is more about the industry. I hope you can see what's coming from so you can put both of them in. But my advice is check your word count. What counts? If it hits your word count, don't push it. Okay, so where it comes from do is you must have described it in literature review these models. You must have spoken about it there at the stage in time. Because otherwise if we don't see literature review and suddenly just appears out of nowhere over here, it's a bit like a magic act. Yeah. You're pulling a rabbit out of have from nowhere. Okay. Yes. Anomaly is 10%. Either plus or minus doesn't hold on 10% plus. I don't want to use the word 10% minus. But in practical terms, if it goes below 10,000. Um, I don't see how that's going to happen. I'm sure by the time you finish it all by ten over 10%, you have a problem. Oh, yeah. That's like see, 10% is 13,200. So keep that as an absolute maximum. Don't go beyond 30,200. Oh 30. You can see she's gunning for 14,000 already. Once you've looked at the internal and external analysis, how does the business operate? How does the business work? So otherwise things like, say, operations, operations management, what are the general activities that take place in a restaurant? Simple supplies need to look at things like suppliers getting the supplies in. That's part of the operations. Then obviously things like say cooking, prepare and so on, you know, and things like, uh, service, for instance, is going to be dining for everybody. Or do you have like a takeaway service, for instance, do you have, you know, a delivery thing you need to work on how these operations are going to work. So in a situation like this, these are probably things where you might want to look at like a supply chain. For instance, if you have a supply chain in place, how is working, how you can implement, how you're going to manage it, for instance. So that's where the operations comes in. Things that are taking place on a daily, weekly or monthly basis regularly routine. Second thing is I just I told you about people working in the business. How are you going to manage them? If you go to with 1015 employees, then how are you going to manage all the simple things, things that you've learned last year in human resource management? How are you going to recruit them? How are you going to select them? What are you going to do about it? Point one. Point number two is after they've joined you, what you need to do. Do they need training? Do they need some development? You need to keep them, isn't it? How are you going to retain them? What are you going to do? Um, is there any kind of, uh, motivation incentives, um, or reward strategies that employ. Give me some information on that. Last, but definitely not the least in the business model is you've got hopefully a good business in place. And fair enough. But how the hell are you going to market it? How do you let people know about your business? I'm sorry. And that's. Come back to what you did in marketing two years ago. There's a model. There's a model that you all learned about digital marketing. That's not the model I was about. We all would have done something called the marketing mix. So depending upon a product, it's four pieces of the service seven P's in marketing mix you have something called promotion or call IMC. And under promotion is where you're talking things like say advertising, social media, digital. I hope this makes sense. So this is how you need to work out how this is going to be marketed to your customers. What is your plan exactly at everybody? So that is the analysis of the business model. Does that make sense? Yes. Okay. Chapter six evaluation. What is that about your evaluating your plan? Okay. My plan? I've written about 10,000 words so far. How do I know that this plan is going to work? What is the sign of success? Let me put it practically. Practically true. But remember, this is an example. When you go to a bank for a loan, for instance, or you go to an investor for some capital, you know, for your business, how are you going to convince them that this plan is a workable, feasible plan? Sorry, the loan is not good enough. Who wants something a bit more than that? You need to have what are called as forecasts for across the next year or two years or three years. This is how much of money I will be making now. This comes from your. Business model. I just told you. Operations, human resources. Marketing. Each of those involves budgets. How many? I mean, you have to pay people salaries to pay for your marketing expenses you need to pay for under the kitchen appliances. Maybe, for instance, you know, there's a lot of budgets, expenditures involved. So you have to come up with your budgets across the next year or two. Don't say for the next three months that's not good enough for the plan. So for the next 12, 24 months, these are the budgets. These are the expenses. And from the business model we spoke with marketing. We said these are the things you're going to do. I already said she's going to be advertising on Sky TV as well as what did you say in the parliament Parliament advertise? You have to go ahead and say through these activities, how much would you be selling? Sales figures? Marketing mix. You would have spoken about pricing, isn't it? So hopefully through that you'll be able to tell us how much you're going to sell it for. And if I say how much I'm going to be selling when I put the two figures together, what do I get? I get turnover income. So I hope you can see that coming from you. You looked at the expenses there. You also look at the income and all of them come together in your. Evolution, and it comes together through creating what is called as a balance sheet. Where have you seen the balance sheet and the AFB? So you need to create a balance sheet which shows you know as to how it all balances. It shows things like cash flow. It shows profits or losses for instance. And through that you're able to then show, yes, this is a business which works. Is that clear to everyone? This makes sense. No very practical piece of advice. We are not looking for profits from day one because that is practically impossible. But what we are looking for is do you see the sales growing up? Do you see the number of customers going up? Do we see the cash flow becoming more positive? I hope this makes sense. These are indications to us which tell us as to whether it's going to work or not. Exactly. Everybody. Yes. Very important point. Please ensure that your figures make sense. If you go ahead and tell me, for instance, you know, I'm going to set up this restaurant and I need like £40,000 to set it up. I can relate to that. Okay. What I don't really do is when it looks like it happened last time, somebody can tell me I want to start a hairdressing salon. That's fine. That's where the person said off the street. Okay. Question two is there a hairdressing salon on Oxford Street? Why should I come to. I told you what is different about yours? And she said the majority of my customers will be women. Fair enough. A lot of young women. Okay. A lot of them will have kids. Okay. I'm going to encourage them to bring the kids to the saloon. What are the kids going to do in the saloon? She said, I'm going to have a little nursery there. I'll have nannies so they can bring the kids. Yes, and leave the kids in the nursery. Next question if it is okay to get all this done. How much of space do you need? She said, I need five rooms. I said, no, no, no. I'm not asking a number of rooms because the space matters. Because I can take the space and then work out the number of rooms. But I need to know how much space I'm looking at. And people do not rent space out to you on the basis of number of rooms. Yeah, they rent out on the basis of square foot or square meter, 70 square foot kitchen I came from. And then, um, finally, based on a long story short, I worked out that the capital investment to start this place with all these different things. Um, it took me about 15 minutes to work that out in Oxford Street. Uh, she would need something like £800,000. And I said, if you've got £800,000, you wouldn't be sitting here in front of me. I hope you're coming from on this one. It needs needs to be realistic. It needs to make sense at the end of the day. Yes. Okay. Then she said, okay, I'm not going to rent it out. I'm going to buy it. Okay, some more calculations that finally came with the £2.7 million. I hope you can see where I'm coming from on this one. It needs to make commercial sense. Is that clear to everybody? So please don't think about the figures very clearly. Be sure about what you're looking at. And then for the plan. Yes. I have a question based on this. Is it not okay? I know it's supposed to make sense because you want it to look realistic. It is meant to be realistic. That's why I said those of you who are planning to start in business should be doing a business plan. Okay. Okay. So my next question is, since we are doing this assignment on business plans and we are going to be referencing this, so are we going to be referencing it based on the concepts that are already there? Remember I said you're doing research on the industry on the industry. You also probably would have to research on the competition. Yes, a lot of them. The location, all that matters and all needs to be pulled into the picture. So you will bring the information to the internet. Okay. Okay. Is this clear to everyone? This makes sense. The BDP structure. Any questions on this? You sure, sir? Okay. Now, this is the easy part. So what topic? That's what I'm coming to right now. Okay. Now, how are things going to work from here? First thing that you guys have to do is decide which one you want to do. Here is your Project - Project Title: EliteMart Concept: A premium online marketplace offering a curated selection of high-quality products and services with a focus on exceptional customer experience. Impact of the Concept: EliteMart will bridge the gap in the market for a specialized platform catering to discerning customers seeking premium products and unparalleled service. Location: Based in London, UK, serving a global customer base. EliteMart will operate all over the UK, ensuring wide accessibility and coverage. Industry: E-commerce and online retail. EliteMart will operate within the highly competitive online retail sector, targeting the niche market of premium and luxury goods. The business will leverage cutting-edge technology and innovative marketing strategies to establish a strong presence in the industry.
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