Strategies and Best Practices for Preparing Undergraduate Students to Write Effective Business Plans

Kaustubh Chavan^*
*Correspondence: Kaustubh Chavan, Department of Business and Economics, Nanyang Technological University, Nanyang Ave, Singapore, Tel: 9987324724, Email:

Keywords

Business strategy • Entrepreneurship • Higher education • Startup • Skill development

Introduction

Before a student pursues postgraduate study, undergraduate education is essential in forming their knowledge and skills. When concepts are still in their infancy, colleges and universities have a vital role to play in shaping students during their undergraduate years. According to data on graduate employment rates in India from 2014 to 2021 [1], the employability rate for male graduates was roughly 39 percent, compared to about 41 percent for female graduates. Interestingly, the employability rate for female graduates rose from 38% in 2018 to 47% in 2020.

Higher education institutions are locations where a lot of young individuals congregate, and by fostering an entrepreneurial, innovative, and incubation culture early on, these educational institutions can help students grow into individuals who create employment for others. Institute Innovation Councils (IICs) were set up on all AICTE approved campuses in 2017 as the outcome of a collaborative effort by the Ministry of Human Resource Development (MHRD) and AICTE [2]. These IICs aim to involve staff, educators, and learners in innovation and entrepreneurial activities, promoting the development of innovation ecosystem on campuses. The project management, idea generation, problem-solving, design thinking, and Intellectual Property (IPR) management processes are all organized by each IIC [3]. The Ministry of Education's Innovation Cell (MIC) also coordinates additional programmes like the national innovation start-up policy, YUKTI 2.0, and the drug discovery Hackathon, in addition to other national and international events like the smart India hackathon. Universities and institutions must train interested student groups and faculty members in the craft of creating business plans in keeping with the aforementioned innovation and entrepreneurship efforts. Students will be able to move from having a concept to creating a workable business plan thanks to these instructions that will equip them with the skills required to effectively become the market.

In this research paper, we'll examine the importance it is to give undergraduate students the understanding and skills required for creating a business plan. We can equip students with the skills they need to turn their ideas into enterprises which are ready for the market by running educational programmes and creating an inviting atmosphere within colleges and universities.

Multiple types of business plans

For a business idea to develop and succeed, a well-structured business plan is crucial. Business plans, or B-plans, can be divided into different categories depending on their goals and structures, including mini plans, presentation plans, working plans, what-if plans, one-page plans, expansion plans, operations plan, feasibility plans, strategic plans, startup plans, internal business plans, standard plans, growth plans, lean plans, and contingency plans [4,5]. The significance of a business plan, however, is frequently difficult for students to understand at the undergraduate level. For undergraduate students, given their limited resources, planning and developing a workable business plan are essential jobs. It might be difficult to balance academic obligations with turning an idea into a business without enough planning. Students must become familiar with the fundamentals of business plans before they can move on to the next stage of creating their business concepts. They should be aware of the reasons behind why a business plan is essential, the many elements it should have, the kind of business plan that best suits their ideas, the suggested planning period, the frequency of plan modifications, and how to present the plan to investors, target clients, or consumers. By acquiring this fundamental knowledge, students may effectively become ready to create a thorough business plan, ensuring that their concepts have a strong foundation for success.

Literature Review

Before beginning the process of developing a business plan, students or aspiring business owners must have a thorough understanding of the potential advantages and uses of each factor. Different business concepts could call for various business models, so it's critical to pick the one that best fits the venture's demands and objectives. Keep in mind that no idea can be uniformly applied by a fixed company strategy or plan. Business strategies should be tailored to the specific circumstances they are used in [6]. A better road map may be created to direct the future prospects of the venture by understanding the specific application of a business plan and adapting it to the particular requirements of the business idea. It is crucial to include numerous elements that enhance the efficacy of a feasible business plan while drafting one. To develop a complete and well-rounded plan, these components should be taken into consideration [7]. Some essential elements to mention are:

• An executive summary is a succinct overview of the company strategy that lists the major ideas and summarises the whole thing.

• Specifics about the goods and services: A comprehensive outline of the goods and services the company will provide, outlining their special attributes, advantages, and value proposition.

• Financial predictions and plans for the long-term viability and profitability of the enterprise, as well as those for short-term financial goals and tactics.

• Marketing strategy and assessment: A comprehensive plan for reaching the target market, locating rivals, assessing market trends, and creating marketing techniques to effectively promote the goods or services.

• Budgeting, revenue predictions, spending management, pricing strategies, and financial contingency plans are all part of indepth financial planning, known as major and minor financial planning.

• A detailed budget that includes costs for operations, marketing, R and D, and other pertinent categories, as well as an explanation of anticipated income streams and costs.

Undergraduate students may develop comprehensive and individualized plans for their business ideas, boosting their probability of success and market readiness, by recognizing the many categories of business plans and their specific purposes. Some essential elements to mention are:

• Mini plan: A brief overview of the business idea and plan with details about the market potential, competitive assessment, marketing strategy, financial predictions, and important tasks [8].

• Presentation plan: A strategy for pitching and presenting a business idea to investors that emphasizes key elements and refines and simplifies the idea itself.

• A working plan, which typically spans a period of six to twelve months, is a crucial tool for allocating tasks, managing workflows, and monitoring progress within a company or project.

• What if plan: A strategic plan that takes several possibilities into consideration and develops strategies based on options, aiding organizations in preparing for potential difficulties or changes.

• One page plan: A shortened form of the operational plan that emphasizes essential elements of the company, challenges, and solutions, the business model, target market, management gaps, funding, and financial summary.

• Expansion plan: A strategic exercise that pinpoints the necessity for corporate expansion, whether as a result of growing demand, new initiatives, diversified markets, or internalizing specific activities. It entails calculating the amount of time and money needed for an expansion to be successful.

• A plan that defines the operational procedures, processes, and resources necessary to efficiently run the business.

• Feasibility plan: A strategy for evaluating a business idea's viability and prospective success, taking into account elements including market demand, rivalry, financial viability, and resource availability.

• A strategic plan is a long-term plan that establishes the vision, goal, and strategy of a company and serves as a framework for resource allocation and decision-making.

• The stages and needs for starting a firm, including market study, target market, finance sources, and growth strategies, are described in a startup plan, which is a plan specifically designed for new ventures.

• Internal business plan: A strategy created for internal use within the company to provide direction to staff and stakeholders and coordinate their efforts with the overarching business goals.

• Standard plan: A thorough and in-depth plan that covers all aspects of business, such as operations, finance, marketing, and expansion strategies.

• A growth strategy is one that prioritizes tactics for scaling and growing a company over time, such as market penetration, product diversification, regional expansion, or strategic alliances.

• Lean plan: A compacted, simplified form of the business plan that highlights crucial components and avoids going into excessive detail, ideal for start-ups or organizations with limited resources.

• Contingency plan: A strategy outlining actions to be performed in the case of unanticipated risks, crises, or events to ensure business resilience and continuity.

Discussion

A business strategy includes the following elements: In order to give a thorough overview of the company and its prospects for success, a comprehensive business plan must include a number of essential elements. The executive summary provides a succinct overview of the whole strategy, stressing the business idea, target market, financial forecasts, and competitive advantages. A detailed analysis of the company, including its mission, offerings, and organizational framework can be found in the company description. Each component is explained as follows:

• A succinct description of the company plan's important elements, such as the mission and vision statement, market size, revenue, and important management professionals.

• Business analysis: An overview of the goals, target market, goods or services, and present successes of the company. It emphasizes the future benchmarks for achievement and satisfying client demands.

• An in-depth analysis of the market and industry in which the company competes. It contains data on the size of the market, market trends, target market categories, and competition.

• Customer analysis: A comprehensive examination of the target audience's characteristics, needs, geography, level of income, way of life, and interests. This helps in attracting and targeting customers in an effective way.

• Competition analysis: A review of both direct and indirect competitors. The same goods or services are offered by direct rivals, whereas comparable choices are provided by indirect rivals. In this part, their strengths, shortcomings, and competitive advantages are evaluated.

• Pricing, distribution methods, marketing and sales strategies, as well as other elements, comprise the marketing and sales strategy. It describes the company's strategy for luring and keeping clients.

• Operations and management: Information regarding the operational framework of the company, including the organizational hierarchy, important individuals, and their roles and responsibilities. The production technique, suppliers, and any legal or regulatory requirements are also covered.

• Financial projections: The business's financial forecasts, which include estimates of its revenues, costs, profitability, and cash flow. A sales prediction and income projections could be present.

• Financial projections : The business's financial projections, which include estimates of its revenues, costs, profitability, and cash flow. An income statement, balance sheet, cash flow statement, and sales forecast could all be included.

• Funding request: If you're asking for money, this section describes how much money you need, why you need it, and how you plan to pay it back. Information on the sources of present and future support may be included.

Risk analysis is the process of identifying and evaluating potential threats to the business's success. Contingency planning and mitigation techniques are included.

The market analysis component looks at the target market,market trends, and competition, giving details on the types of consumers, the market's size, and it’s potential for growth. Sections on organizational structure, goods and services the company offers, financial planning, risk management, and marketing and sales strategies are all included in the business plan. The business plan lays out a strategy for the expansion and success of the company by addressing these elements.

Conclusion

This study has examined the value of undergraduate education in developing student’s employability and encouraging an entrepreneurial mentality. It has drawn attention to the steps governments and educational institutions have made to encourage innovation and entrepreneurship among students. A well-structured business plan is crucial for realizing business ideas and supporting a company's expansion, as the article has also shown. The numerous types of business plans, their elements, and how they apply to diverse business concepts have all been covered. The overall message of this study is that undergraduate students must comprehend the importance of business planning and acquire the skills required to write strong business plans. This will increase their chances of succeeding in both their academic and professional endeavors.

Acknowledgement

I like to thank SIES graduate school of technology in Nerul, Navi Mumbai, for their assistance and support during the research process. This study's execution has been greatly aided by its facilities, academic atmosphere, and resources. I am appreciative of the institution's faculty and personnel for their advice and support during the project. The results of this study report have been greatly influenced by their dedication to offering high-quality instruction and promoting an innovative environment.

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