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A business plan is a document that describes the nature of the business, the objective/ goals of the business and marketing strategies which will be followed by the business. Every organisation requires a business plan, whether it is to secure profits or attract investments or even to secure a loan for working capital/ fixed capital, a business plan is required. Without a business plan, the organisation would be aimless without any goals and objectives to achieve. A well-structured business plan will ensure that your organisation focuses on critical priorities. Let’s read about NBFC Business Model in depth.
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There are many NBFCs in India. These NBFCs contribute to the development of the economy by concentrating their resources in sectors such as Agriculture[1], Micro and Small Scale Enterprises, Income Generation, Transportation, Housing and to the economically weaker sections of the society. Due to the highly competitive environment of NBFCs in India, it is crucial to devise a proper Business Model for NBFCs.
Drafting an effective Business Model for NBFC is crucial for the business purpose and serves the following objectives:
Drafting a business model for NBFC plays an important role in the success of an NBFC. Below are the requirements for starting an NBFC Business Model:
A well-drafted NBFC business plan would have the above points. However, a business plan is drafted having the current market factors and would be valid for a specified period. A business plan cannot be valid indefinitely. Some factors which affect the business plan are technology changes, digitisation, market forces and changes in the preference of consumers. Therefore, an NBFC business plan drafted must be put to immediate use.
Having an NBFC business model will provide you with a road map to a successful NBFC. It also provides you with risk mitigation. If specific requirements have not complied with, you can always refer to your NBFC business plan and make the necessary improvements. Therefore, this model acts as a blueprint to a successful NBFC. Apart from the above, there are also other advantages which are mentioned below:
Starting any business without a business plan is an aimless prospect. It is crucial to have a business plan to ensure the objectives and goals of the business have been achieved. Similarly having an NBFC business model would provide efficiency in business development and meeting all the priorities of the business. Apart from just organizational priorities, the NBFC Business model offers a comparison tool for the actual standards which are required to be achieved by your NBFC business with the standards which are present in the business model. Therefore, every NBFC must have a business model to succeed in the current market.
See Our Recommendation : New Trend in NBFC Business Model, Challenges and a Scalable Business model.
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