Training centers need to develop a Business plan to succeed. This set of PPTs provides step by step development process for an effective business plan.

1. BUSINESS PLAN
for
Training Centers
- Dr. V. Thanikachalam

2. What is a Business Plan?
A plan to communicate your
business goals, business
description, market strategies,
competitive analysis, design and
development plan, operations
and management plans, and
financial components.

3. Business Goals
1. What do you want to do in Highways
Engineering?
2. How much do you plan to do?
3. What is the type of product that you want to
produce?
4. Investigation, Design, Execution, Supervison
5. What is the type of service that you wanted
to provide?
6. What is volume of your projects?

4. Feasibility
• Silver’s first law of entrepreneurship
• V = Venture Feasibility
• V = P x S x E
• V = Valuation or Wealth
• P = Problem that business intends to solve for its customers
• S = Elegance of the solution that it will offer
• E = The skill of the entrepreneurial team.

5. Maximum Valuation
•V = P x S x E
= 1 x 1 x 1
= 1
•Suppose P=1, S=1, E=0
What is the maximum valuation?
•Suppose P=1, S=0, E=1
What is the maximum valuation?
•Suppose P=0, S=1, E-1
What is the maximum valuation?

6. Size of the Problem
Size = R x N
R = Price they can pay for a solution
N = Number of people with the problem
If, N = 50,000, R = 40
Size = 50,000 x 40
= 20,00,000
If N = 2,50,000, R = 40
Size = 1,00,00,000

7. The elegance of the solution
Non-duplicable, first to market,
difficult to replicate
First to market, difficult to
replicate
First to market.

8. Skill of the High Performing Team
Entrepreneurial team has managed a
launch; knows how to operate a Training
Division.
Entrepreneurial team has at least one
person who has launched and operated a
Training Center before.
Entrepreneurial team has no prior launch
experience.

9. Demonstratable Economic
Justification (DEJ) Factors
 Select all that are true:
1. There are many potential consumers of
your solution and are they aware of the
problem that your solution addresses.
2. The consumers of your solution will
accept a standard product or service,
and you will not have to customize it.

10. 3. You don’t have to tell your customers that they
have a problem; they are aware of it and are
willing to pay for a solution.
4. The solution delivery system does not require
an expensive sales person and long cycle from
presentation to sale; a competent sales person
could make the sales quickly.

11. 5. No restrictions must be removed before your
product or service can be introduced to the
market.
6. The product or service will not require
advertising on a grand scale. Instead, the
benefits of the product or service will get
passed along by word of mouth.

12. 7. Your company can be built quietly
without news leaking out in the press or
otherwise, thus preventing accidental or
intentional competition.
8. Your product or service’s gross profit
margins will be very high, around 80
percent.

13. Successful Strategic Plan
 The simple way to keep your business on track:
Step One – Be the Best
• Develop a competitive advantage
• What can your company potentially do better than any
other company?
• Understand your competitive advantage
• The reason for you in business
• What you do best that draws customers to buy your
product / service instead of your competitor’s
• Focus all of your energy on your competency.
• Incorporate your competitive advantage into your
mission and / or your vision statements.

14. Step two – State your Objectives
• State your Objective
• A mission statement is a statement of the company’s purpose.
• It is useful for putting the spotlight on what business a company is
presently in and the customer needs it is presently endeavoring to
serve.
• A guide for day-to-day operations.
• A foundation for future decision making.

15. Write a Mission Statement of your
Training Center
•Answer the following questions:
-What are we trying to accomplish for
our customers?
•What is our training Center’s reason for
existing?

16. Step three – Visualize the future
•A strategic vision is the image of a
Training Center’s future
- the direction it is headed
- the customer focus it should have
- the market position it should try to occupy
- the business activities to be pursued
- the capabilities it plans to develop

17. What is the purpose of strategic vision?
•Forming a strategic vision should
delineate what kind of enterprise the
company is trying to become and infuse
the organization with a sense of
purposeful action.

18. Think Big
•What will our business look like in five to
ten year from now?

19. Step four – Take an inventory
•The SWOT Analysis
•Strengths
•Weaknesses
•Opportunities
•Threats
•Critically look at your organization
•A good fit between a training center’s
strengths and opportunities

20. Strengths and Weaknesses
•What do we do best?
•What do we not do best?
•What are company resources – assets,
intellectual property and people?
•What are our training center’s
capabilities?

21. Opportunities and Threats
•What is happening externally that will affect
our training center?
•What are the strengths and weakness of each
competitor?
•What are the driving forces behind sales
trends?
•What are important and potentially important
markets?
•What is happing in the world that might affect
our company?

22. Step five – Profile your customers
•Meet your customers’ needs and wants better
than your competitors do
•Develop customer profile
- What are our customer needs, motivations,
and characteristics?
- How do we uniquely provide value to our
customers?
- What should we improve to grow our
customer base?

23. How to choose the right business
plan format?
A vital component of starting and
growing a successful enterprise.
Chose the right one for your
purpose and enterprise.

24. Who is the intended audience?
Internal audiences
- Owners, Employees, Boards of
Directors, Advisors, Senior
Management.

25. Why?
For the purpose of
implementing a growth strategy.
Referred to as a Strategic Plan.
A guide solely for the owner of
a new business to clarify their
vision and goals.

26. A business plan for external
audiences
Internal Development Agencies
Clients
Suppliers
New hires
Banks
Other Lenders
Government

27. Purpose of Business Plans
Attracting financing
Talent or suppliers

28. Business Opportunity Document
For attracting funds.

29. Business Funding Proposal
Like DPP or DPR
Obtaining financing is a
significant issue.

30. What goes in the business plan?
Executive summary
Company history and background
Clear description of the business concept and value proposition
Marketing analysis including competitive analysis and market
development plan
Production and operations assessment and development plan
Financial assessment and projections
Management and human resources assessment and plan
Implementation plan
Identification of resources
Proposed deal structure for investors (if appropriate)
Survival strategy describing inherent risks and mitigation
strategies
Growth strategy
Existing strategy

31. Why many business plans don’t get
funded?
Your business plan is very often the
first impression potential investors get
about your venture.
But even if you have a great product,
team, and customers it could also be
the last impression that the investor
gets if your make any of these
avoidable mistakes.

32. Content Mistakes
You are in business to get paid for
making goods and services.
You have not analysed the market
potential.
A well written business plan places
the solution firmly in the context of
the problem being solved.

33. Value Inflation
“Unparalleled in the history”
“Unique and limited opportunity”
“Superb returns with limited capital investments”
Nothing but assertions and hype.
Investors will judge these factors for themselves.
Layout facts
- the problem, your solution, the market size, how
will you sell it, and how you will stay ahead of
competitors.
Lay off the hype.

34. Trying to be all things to all people
Many early stage companies believe that more is
better
They explain how their product can be applied to
multiple, diverse markets
Or they devise a complex suite of products to bring
to a market
Most investors prefer to see a more focused strategy,
Enrich and support the highly focused core strategy
(additional products, applications, markets, and the
distribution channels)
You need to hold the story together with a strong,
compelling core thread.

35. No go-to-market strategy
Business plans that fail to
explain the sales, marketing, and
distribution strategy are doomed.

36. The key questions that must be
answered are :
Who will buy it?
Why, and
How will you get it to them?

37. You must explain
How you have already
generated customer interest?
Obtained pre-orders
Made actual sales
Describe how you will leverage
through a cost-effective go-to-
market strategy.

38. We have no competition?
You have competitors!
Substitute solutions
Competitors, simply stated, consist
of every body pursuing the same
customer rupees
Investors will conclude that you do
not have a full understanding of your
market.

39. Competition Section of your business
plan
Showcase your relative strengths
against competitors
Project your strength against
direct competitors, indirect
competitors and substitutes
Show investors that a real market
exists.

40. Business Plan should show
the real worth of the Training
Center in Engineering!