STARTUP &

ENTREPRENEURIAL
SKILLS
UNIT-2
SYCS
BUSINESS PLAN
• Concept of a Business Plan
• A business plan is a written document that outlines a company's goals,
strategies, market analysis, operational structure, and financial projections. It
serves as a roadmap for the business, detailing how it plans to achieve its
objectives over a defined period. A business plan is essential for both new
ventures and existing businesses seeking growth, as it helps in organizing ideas
and securing funding from investors or lenders.

• https://www.shopify.com/blog/business-plan
FORMAT OF A BUSINESS PLAN
COMPONENTS OF A BUSINESS PLAN
SIGNIFICANCE OF BUSINESS PLAN
BUSINESS MODELS & STRATEGY

• A business model is a framework that outlines how an organization

creates, delivers, and captures value. It is the foundation of any
business and explains how a company operates, generates revenue,
and achieves profitability. A well-designed business model provides
clarity on the target market, value propositions, and revenue streams.
• 4. Types of Business Models
1.Product-Based Models: Selling tangible goods (e.g., Apple, Tesla).
2.Service-Based Models: Offering services instead of products (e.g., Netflix,
Uber).
3.Subscription Models: Recurring revenue from subscribers (e.g., Spotify,
Adobe).
4.Freemium Models: Free basic services with paid premium options (e.g.,
Dropbox, LinkedIn).
5.Marketplace Models: Connecting buyers and sellers (e.g., Amazon, eBay).
• 2. Entry Wedges
• Entry wedges refer to the strategic approaches a business uses to enter a new
market or industry. These strategies help overcome barriers to entry and
establish a foothold.
• Types of Entry Wedges:
1.First-Mover Advantage: Being the first to market with a unique product/service.
1. Example: Amazon in e-commerce.
2.Second-Mover Advantage: Improving on the first-mover’s idea.
1. Example: Facebook improving upon MySpace.
3.Innovative Products/Services: Offering something novel to disrupt the market.
1. Example: Tesla with electric vehicles.
4.Leveraging Existing Relationships: Using partnerships or networks to ease entry.
1. Example: Starbucks leveraging real estate partnerships for rapid expansion.
• 3. Resource-Based Strategies
• These strategies are built around leveraging a company’s internal resources
and capabilities to achieve a competitive advantage. The Resource-Based View
(RBV) emphasizes that unique resources and capabilities can be a source of
sustainable advantage.
• Key Components:
1.Valuable Resources: Resources that create value for customers.
2.Rare Resources: Resources that are not commonly available to competitors.
3.Inimitable Resources: Resources that are difficult to replicate.
4.Non-Substitutable Resources: Resources that cannot be replaced by other
alternatives.
• Example: Apple’s unique brand equity and innovative design capabilities are
key resources driving its success.
4. Information Rules Strategies focus on how businesses use information and
data to make smart decisions, especially in industries like IT, media, and finance,
where technology and data play a big role. These strategies help companies
grow, deliver better products/services, and stay competitive.
• 5. The concept of Strategy and Industry Environments refers to how
businesses create strategies by analyzing the industry they operate in. The
"industry environment" includes all external factors, like competitors,
customers, suppliers, and market trends, that affect a company's ability to
succeed.
• By understanding the environment, businesses can make informed decisions to
gain a competitive advantage, adapt to changes, and achieve their goals.

• Examples
1. Technology Industry (Dynamic Environment):
1. Companies like Google and Microsoft invest heavily in innovation and adapt quickly to technological
changes to stay ahead.
2. Retail Industry (Competitive Environment):
1. Amazon analyzes customer data to offer better pricing and convenience, outpacing competitors.
3. Food Industry (Moderate Environment):
1. Companies like McDonald’s focus on standardization and cost efficiency to dominate in stable markets.
• Tools for Analyzing Industry Environments
1.PESTEL Analysis:
1. Looks at Political, Economic, Social, Technological, Environmental, and Legal factors affecting the
business.
2. Example: An electric car company might consider government incentives (Political) or new battery
technology (Technological).
2.Porter’s Five Forces:
1. Analyzes the following forces to understand industry competition:
1.Threat of New Entrants: How hard is it for new companies to enter the market?
2.Bargaining Power of Suppliers: Can suppliers raise prices or limit supply?
3.Bargaining Power of Buyers: Can customers demand lower prices or better quality?
4.Threat of Substitutes: Are there alternatives to your product/service?
5.Rivalry Among Competitors: How intense is the competition?
2. Example: In the smartphone industry, companies like Apple and Samsung face intense rivalry, while
new entrants struggle due to high barriers.
3.SWOT Analysis:
1. Identifies Strengths, Weaknesses, Opportunities, and Threats.
2. Example: A restaurant might have great food (Strength), but limited seating (Weakness) and an
opportunity to expand delivery (Opportunity).
• 6. Crafting and Evaluating Strategy
• This refers to the process of formulating, implementing, and assessing
strategies to ensure organizational success.
• Steps in Crafting Strategy:
1.Vision and Mission: Define the long-term purpose and goals.
2.Setting Objectives: Break down the vision into measurable targets.
3.Strategic Analysis: Use tools like SWOT or Porter’s Five Forces.
4.Strategy Formulation: Decide on competitive positioning (e.g., cost leadership,
focus strategy).
5.Implementation: Allocate resources, align teams, and execute.
• Evaluating Strategy:
1.Performance Metrics: Measure financial and operational outcomes.
2.Market Feedback: Analyze customer and competitor responses.
3.Adaptation: Refine strategy based on internal and external feedback.
Role of Small Scale Industries (SSI) Sector in the Economy
Small Scale Industries (SSIs) play a vital role in driving economic development
and contributing to the socio-economic growth of a country.
TURNAROUND STRATEGIES https://www.wallstreetmojo.com/turnaround-strategy/
Turnaround Strategy refers to retrenchment when a company realizes that they have made a
severe mistake. The strategy is called turnaround because it suggests one has come in the wrong
direction, and it is time to make a U-turn, undoing the mistake and minimizing the impact and
losses.
• Turnaround strategies are critical for reviving struggling Small Scale Industries
(SSIs) and restoring them to profitability. These strategies involve identifying
the root causes of problems, implementing corrective actions, and positioning
the business for sustainable growth.
• Turnaround Strategies for Small Scale Industries (SSIs)
1.Financial Restructuring: Renegotiate loans, seek new funding, and reduce
costs to stabilize finances.
2.Operational Efficiency: Optimize resources, adopt automation, and improve
product quality to enhance productivity.
3.Market Reorientation: Diversify products, enter new markets, and rebrand to
rebuild customer trust.
4.Technological Upgradation: Implement modern tools, use digital platforms,
and invest in R&D to stay competitive.
5.Customer Focus: Strengthen customer relationships, offer customized
solutions, and implement loyalty programs.
6. Strategic Alliances: Form partnerships or joint ventures to share risks and
expand market reach.
7. Workforce Management: Upskill employees, restructure teams, and improve
motivation.
8. Government Support: Leverage subsidies, training programs, and tax benefits
for financial and operational aid.
9. Core Competency Focus: Concentrate on high-margin areas and discontinue
unprofitable ventures.
10. Crisis Management: Address urgent issues, develop short-term plans, and
monitor progress for stabilization.

•These strategies, when effectively implemented, can help SSIs overcome

challenges and achieve long-term growth.