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Saturday, November 22, 2008

What is any Businees?

Why: A business plan may have one of the three primary objectives
- To make money/ To be independent/ To work for oneself
- Two-fold: Social Entrepreneurship- To make money & to contribute to society; e.g. open a school, hospital, set-up a rural BPO etc.
- To contribute to society

What: Involves the following activities
- Get money from a lender
- Hire experts and get other assets in place to work for you
- Pay out salary/ wages and other expenses
- Sell the product/ service
- Pay back the lender

How: The detailed business plan specific to one's business - explaining how one would carry out each and every step of the business including but not limited to Operations, Sales, Admin, HR, Finance, IT etc. The business could be
- A pharmaceutical company (to make money)
- A private equity fund (to make money)
- A library (Social Entrepreneurship)
- A self sustainable business model with sole aim of contributing to the society; e.g. open a school in a child labour prevalent area, pay kids for coming to school which compensates for their income from child labour, give them a vocational training along with education, e.g. teach to make pottery, cane basket, handicraft etc. sell their products into the market which would provide cash in-flow for the expenses to run the school and pay-out to the kids; Obviously this process involves one to borrow money for the initial set-up, hire experts for teaching/ vocational training and incur expenses, sell the products and pay back the lender