A

SAMPLE BUSINESS PLAN

FOR

ABC INSTITUTE OF TECHNOLOGY AND MANAGEMENT

SUBMITTED TO

BY
ABHISHEK KUMAR
Reg. No.-10MBA1003

ON
AUGUST 21; 2010
 Assignment No.-1
Description of My Business.

India is a developing country, both in terms of economy and population. There is a great need for
Baby products, products for young aged people and education in a country like India. So, my
business plan in the future is to establish an institute where I can impart knowledge to the
people.

*Steps for starting up a new business:-

ANALYSE YOURSELF AND YOUR OBJECTIVE.

UPDATE YOURSELF WITH NEWER IDEAS

CONSULT PUBLICATIONS AND AGENCIES

TAKE A DECISION

CHOOSE A LINE

DECIDE ON FORM OF OWNERSHIP

DECIDE TO PURCHASE A GOING CONCERN / START A NEW ONE

OBTAIN/PREPARER A PROJECT REPORT

DECIDE LOCATION AND SITE

OBTAIN CLEARENCE FROM DIFFERENT CONCERNED AUTHORITITES

PLAN FINANCE

PLAN SOURCES OF EQUIPMENTS

PLACE ORDER FOR EQUIPMENTS

RECRUIT PERSONNNEL

DECIDE ON PRICING
 ORGANISE MARKETING

START FUNCTIONING

BE UP TO DATE

DIVERSIFICATION

MODERNISATION

COMPETE WITH OTHERS

GROW BIGGER

*Steps have been taken from the book “Dynamics of Entrepreneurship Development”

Before planning I need to prepare a business plan in order to control the plan and specify the
clear objective.

1. What is the purpose of this business?

• To provide quality education.

• Attract students from all parts of the world.

• To capture maximum market share in education service.

• To stay in the market for long time.

• Welfare of stakeholders.

2. I) What product will the business provide?

• Education Services

II) Who is the target market?

 • All students who want to pursue their career in the field of Engineering and
Management.

3. Who are my competitors?

In the beginning my target competitors are

• IIMs

• IITs
As they are in this sector from a long time and have built up a brand image. But, their
week point is that as they are very old so they don’t like to change anything in
teaching methodology or anything else. They want to go with the prescribed rules and
regulations which are followed from years and years.

4. What is the competitive advantage? How will the business be successful?

The competitive advantage will be :-

• World class infrastructure.

• Highly qualified and experienced and student friendly Faculty members.

• Best students

• Innovative teaching methodology.

• Involvement in the practical cases.

• Flexibilities
• Tie-ups with foreign universities with regular lectures through video
conferencing.

5. How much money do I need to get started?

Capital required in order of establishing an institute depends over the requirements. A

rough idea can be estimated as Rs. 10 Crore as the start-up capital on the basis of below
points.
 • Acquisition of Building on lease.

• Equipping the building with all facilities.

 Modern Labs.

 Communication facilities.

 Infrastructure.

 Recreational equipments (including Gym).

 Modern Class rooms with touch screen boards.

 Video conferencing.

• Affiliation.

• Heavy Advertisement.

 Print Media.

 Electronic Media.

• Selection of students.

• Tie-ups with foreign universities.

• Monthly expenditure over regular activities.

 Stationary.

 Salary to staffs.

 Bills.

 Transportation.

 Miscellaneous expenditure.

6. Where do I secure the money to finance the new venture

My requirements for start-up capital are as follows:
I will require either start-up capital or financing. These items include buying supplies,
getting a computer, equipment and fixtures, tooling, travel expenses and start-up
overhead expenses.
My sources of financing for starting my business are
 • My savings.
• Friends and Relatives(First stage financing)
• Banks
• Credit from suppliers
• Mortgage financing
• Venture Capitalists.

7. What is the potential revenue, expenses and profit

It’s a sector, where I can expect to generate revenue from the very first year. Profit
margin would not be very high at the beginning as I will have to repay the capital and pay
salaries, but in long run it will generate a good profit.
Even if I start this institute with 100 students, means I will get 100*
3,00,000=Rs.3,00,00,000 in the first year. Thereafter I will delegate this authority to
Finance department for raising and deployment of fund.

8. How do I manage the business?

I would not like to form two conflicting groups as Management and Administration.
Therefore it will be single group in order to avoid formation of unnecessary groups. At
beginning I will hold the most of the authority with myself in order of controlling of plan
and avoid any deviation and then gradually delegate the authority to faculties. There will
be a single hierarchy. For Marketing strategy I would like to opt heavy marketing and
promotions by electronic media with boards and banners everywhere.

9. What are the possible expansion plans?

Probable expansion plans are:-

• Acquiring my own land.

• Building of college Building.

• Expansion in numbers of courses to be offered.

• Building of hostels.
• Building of staff quarters.