An Overview to

Business Planning
Chantal May D. Lipata

Definition of Business Plan

A written document prepared by the
entrepreneur that describes all the
relevant external and internal
elements involved in starting a new
venture. An integration of functional
plans such as marketing,
manufacturing, and human
resource

Hisrich and
Peter

Definition of Business Plan

A document that
convincingly demonstrates
the ability of a business to
sell its products or services
to make satisfactory profit
and be attractive to
potential backers.
David E.
Gumpert

Other definition

Thinking ahead of objectives, strategies, financing,

production, marketing, profit prospects , and growth
possibilities.

Involves attainment of goals and ways to accomplish

such goals.

Principles of Planning
For micro and small business:
1. Planning must be realistic.

It must be based on the available resources: human,

financial, and physical resources.

2. Planning must be based on felt needs.

The objectives of an entrepreneur should fit the needs

of the people in a community. It can be known through
observation, personal interviews, and questionnaires.

3. Planning must be flexible.

Resource needs and economic conditions change.

Planning should be adjusted to such changes to be
effective and relevant.

4. Planning must start with simple projects.

Stages of Business Planning

by: Philip Kotler
At the start of business, owner-manager is busy looking for funds, customers,

Criteria of Effective Planning

The plan should
1. State clearly its objectives.
2. Provides measures for a satisfactory
accomplishments of the objectives.
In terms of QUANTITY, QUALITY, TIME AND COST.
3. State the policies.
4. Indicate what department/unit would be involved in
accomplishing objectives.
5. Indicate the time allowed for each activity.
6. Specify the required resources.
7. Designate the officers.

Components of Business
Planning
1. SWOT. The chances of a product or service can be
evaluated through the SWOT analysis. Every
product or service has its own strength, weakness
opportunity, and threat. Planning should include
the improvement of the product/service in order to
survive competition.
2. OBJECTIVES.
Specific and realistic (can be daily, weekly,
monthly, and yearly).
3. STRATEGIES. Ways of accomplishing the
objectives (stated in the financial, production,
marketing, and organizational plans).
4. TIME FRAME.

Characteristic of a Sound

Business Plan
1.
2.
3.
4.
5.
6.

OBJECTIVE
CLEAR
LOGICAL AND SIMPLE
FLEXIBLE
STABLE
COMPLETE AND INTEGRATED