Case study

Rajat was deciding to start his own business. He was busy creating a detailed, well written and pleasing formatted plan to present it to the stakeholder. His aim was to satisfy the concerns, queries and issues of each group. While preparing the business plan he focussed on the following points.

A. The manufacturing operation that he will follow

B. Established the exact route of each individual item, part of assembly

C. He decided the form of business organisation that he needs to set up. This was done so that the investors know who controls the organisation

D. He also designed the amount of finance required and created the break-even analysis

E. He drafted the number and type of people required and what will be the selection process

F. He carefully analysed and did SWOT analysis for the business

Once the plan was drafted Rajat presented it before the team of DM capital. DM capital agreed to invest ₹20 cr for 10% share in the company. Rajat invested ₹10 cr out of his saving and also borrowed ₹20 cr from a bank @10% interest. Rajat started business and at the end of the first year earned a profit of ₹30 cr after paying taxes.

Identify the format of business plan created by Rajat for the investors.

A written presentation for external stake holders

The correct answer is option (3) - A written presentation for external stake holders.

Rajat created a detailed, well-written, and pleasingly formatted plan to present to the stakeholders, specifically the team of DM capital. This suggests that the plan is a formal document designed for external stakeholders, providing a comprehensive overview of the business, including manufacturing operations, financial requirements, organizational structure, and other relevant aspects.

i)                    Elevator pitch: It is a three minute summary of the business plan's executive summary. This is often used as a teaser to awaken the interest of potential funders, customers, or strategic partners.

ii)                  A pitch deck with oral narrative : A hopeful, entertaining slide show and oral narrative that is meant to trigger discussion and interest potential investors in reading the written presentation, i.e. the executive summary and a few key graphs showing financial trends and key decision making benchmark.

iii)                 A written presentation for external stakeholders: A detailed, well written, and pleasingly formatted plan targeted at external stakeholders.

iv)                 An internal operational plan: A detailed plan describing planning details that are needed by management but may not be of interest to external stakeholders.