Business Plan Development: The Key to Business Survival in the Entrepreneurial Ecosystem
The University of Tehran Science and Technology Park held a workshop on how to write a business plan on Sunday, June 16.
Dr. Reza Mohammadkazemi, Director of the Business Promotion and Development Center at the University of Tehran Science and Technology Park and the workshop instructor, began by introducing the Global Entrepreneurship Monitor (GEM) and explained: “Global Entrepreneurship Monitor is the only research program that examines and measures the entrepreneurial ecosystem and the process and indicators of entrepreneurship. “
He then spoke about the importance of reviewing GEM reports and each country’s position in the field of entrepreneurship and added: “. Despite the economic sanctions, Iran has been able to be among the top 20 countries in business startups. However, 80% of new businesses fail within the first two years.
Based on the analyses provided by the GEM, Dr. Mohammadkazemi explained the reasons for the failure of businesses in Iran, stating that the lack of awareness and low skill level of business owners or founders in terms of business plans and how to write them are among the main reasons for this.
The Director of the Business Promotion and Development Center at the University of Tehran Science and Technology Park identified industry analysis as the primary step in writing a business plan. He elaborated that obtaining a big-picture understanding of the business we want to launch is essential.
Important topics such as environmental analysis, market analysis, supply and demand analysis, industry review, and technical analysis are considered critical factors in industry analysis.
Dr. Mohammadkazemi, emphasizing the importance of writing a business plan, noted: “One of the existing issues in the country’s business environment, especially in organizations, is the misuse and substitution of the three terms feasibility study, business plan, and business model. It is crucial to recognize and clarify the differences between these three concepts.”
The University of Tehran professor further explained the concept of a business plan and stated: ” A business plan not only allows us to know what the entrepreneur chooses to do but also clarifies the reason behind their actions. This understanding enables us to interpret the entrepreneur’s observations, behaviors, and performance by considering rationality.”
He detailed the reasons for the importance of preparing and developing a business plan, adding: “50% of companies that had a business plan achieved higher revenues. Additionally, according to GEM statistics, over 90% of businesses that survived for more than five years had a well-developed business plan, which contributed to their growth and development. Furthermore, 40% of businesses that did not have a business plan dissolved and faced early demise within the first year.”
Dr. Mohammadkazemi outlined the applications of a business plan, stating that it is helpful in obtaining loans or credit from banks, attracting investors, securing significant contracts, recruiting key personnel, merging with or acquiring companies, and interacting with customers.
It is worth mentioning that in the first part of the workshop, Dr. Mohammadkazemi explained the concepts and components of a business plan, including the executive summary, industry analysis, business description, product or service explanation, management team, production/operations plan, marketing plan, financial plan/analysis, legal considerations, and appendices.
In another part of the workshop, participants, after forming teams under the supervision of Dr. Mohammad Kazemi and other facilitators from the Science and Technology Park, practiced and implemented the discussed concepts. This workshop, aimed at technology cores (teams), companies, and entrepreneurship enthusiasts, was held from 1:00 PM to 6:00 PM at the University of Tehran Science and Technology Park.
