Business Plan Workbook

Section 1
EXECUTIVE SUMMARY

1.1 Name Of Business

1.2 Business Address

1.3 Nature Of Business

1.4 Form Of Business

1.5 Name Of Owner(s)

1.6 Brief Description Of Business

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1.7 Objectives

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2

Section 2

MARKETING PLAN
2.1 Description of the Product

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2.2 Comparison of the Product with Its Competitors

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Table 2.2 Competitive Analysis of Product
Features

Proposed
Business

Competito
r1

Competito
r2

Product quality: Length
Width/Design
Color
Weight
Price
Delivery lead time
Brand name
Multiple use
Taste
Material make up

Rating: 1 - Outstanding; 2 - Very satisfactory; 3 - Good; 4 - Fair; 5- Poor

Competitor
3

3
2.3 Store Location
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Figure 2.3 Location Map (Draw on a separate sheet of paper)
2.4 Market Area
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Table 2.4 List of Market Areas and Size of Market
Barangay /Locality

No. of Households

Population

2.5 Main Customers
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Table 2.5 List of Major Customers and their Requirements

2.6 Total Demand
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Table 2.6 Table of Projected Demand

4
Year

Quantity

Amount ( Pesos)

2.7 Total Supply

Table 2.7 Table of Projected Supply & Sources of Supply
Supplier

Year

Quantity

Amount
(Pesos)

2.8 Market Share
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Gap Analysis
Year

Market Requirement

Available Supply

GAP

2.9 Selling Price
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Table 2.9 Comparison of Competitors’ Selling Prices

5

Project’s
Product(s)

Project’s
Selling
Price

Prices of Competitors
Competitor
1

Competitor
2

Competitor
3

Competitor’s
Average
Price

2.10 Sales Forecast
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Table 2.10 Projected Sales by Year, Sales Volume and Amount
Year
______________

Sales Volume (Units)
_________________

Sales Amount (Pesos))
_______________

______________

_________________

_______________

______________

_________________

_______________

______________

_________________

_______________

______________

_________________

_______________

______________

_________________

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2.11 Promotional Measures
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2.12 Marketing Strategy

6
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Table 2.12 Table of Competitor’s Marketing Strategy
Competitor

Product

Price

Distribution

Promotion

2.13 Marketing Budget

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7
Table 2.13 Marketing Budget
Item
Projected Sales
Marketing Expenses:
Promotion
(Specify)
Distribution
(Specify)
Advertising
(Specify)
Selling
(Specify)

Total Marketing Expenses
Marketing Expenses over Sales (%)

8

Section 3

PRODUCTION PLAN
PPPPPPPPPLPLAN
3.1 Production Process
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Figure 3.1.1 Process Flow Chart (Draw on a separate sheet of paper)
3.2 Fixed Assets
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3.3 Life of Fixed Assets

Table 3.3 Schedule of Useful Life and Depreciation Rate
Machines, Tools & Fixtures

3.4 Maintenance and Repairs

Cost

Useful Life

Depreciation Rate

9
Table 3.2.1 List of Machinery, Number, Specifications and Purpose
Machines, Tools & Fixtures

Number

Specifications

Purpose

Table 3.2.2 List of Machinery, Suppliers and Price
Machines, Tools & Fixtures

Suppliers

Price per
Unit

No. of
Units

Total
Cost

Terms of Purchase

10
3.5 Sources of Equipment

Table 3.5.1 List of Equipment and Suppliers
Machines, Tools & Fixtures

Suppliers

3.6 Planned Capacity

Projected Production Volume by year
Year

3.7 Future Capacity

3.8 Terms and Conditions of Purchase of Equipment

3.9 Plant Location and Layout

Volume

11

Figure 3.9.1 Plant Location

Figure 3.9.2 Plant Layout

(Draw on a separate sheet of paper)

(Draw on a separate sheet of paper)

3.10 Raw Materials Needed

3.11 Cost of Raw Materials

Table 3.11 List of Materials, Quantity Needed and Cost
Raw Materials
A. Direct Materials

B. Indirect Materials

Total Material Cost

Unit Price
of Materials

Quantity
Needed

Total
Cost

Remarks

12

3.12 Raw Materials Availability

Table 3.12 List of Raw Materials, Sources and Price
Type of Materials

Suppliers

Unit Price

3.13 Labor

Table 3.13 Job Position, Qualifications and Experience of Direct and Indirect Labor
(See page 14)
3.14 Cost of Labor

Table 3.14 Job Position, Number and Cost
3.15 Labor Availability

3.16 Labor Productivity

(See page 15)

13

3.17 Factory Overhead Expenses

Table 3.17 Overhead Items and Cost (See page 16)
3.18 Production Cost

Table 3.18 List of Direct Materials Used, Direct Labor Employed and Factory

Overhead – Total and Unit Cost (See page 13 )

14
Table 3.13.1 Job Position, Qualifications and Experience of Direct Labor
Direct Labor
Job Title of Worker

Qualifications

Experience

Table 3.13.2 Job Position, Qualifications and Experience of Indirect Labor
Indirect Labor
Job Title of Worker

Qualifications

Experience

15
Table 3.14.1 Labor Cost
Year

1
2
3
4

Type of Labor

No. of Workers

Total Salary per
Month

Total Fringe Benefits per
Month

Total Labor Cost per Year

Direct labor
Indirect Labor
Total
Direct labor
Indirect Labor
Total
Direct labor
Indirect Labor
Total
Direct labor
Indirect Labor
Total

Table 3.14.2 Direct Labor Cost
Product

Production Time per Product Unit

Direct Labor Rate

Direct Labor Cost per Product Unit

16
Table 3.17 Factory Overhead Expenses
Year
Overhead Item

1

2

3

4

5

Total Factory Overhead Per Year
\

Factory Overhead per product unit
Table 3.18 Production Cost

Product

Planned
Production
Volume

Direct
Materials
Per unit

Total

Direct
Labor
Per unit

Factory
Overhead
Total

Per unit

Total

Total Cost
Per unit

Total

17

18

Section 4

ORGANIZATION & MANAGEMENT PLAN
4.1 Form of Business

4.2 Organizational Structure

Figure 4.2 Organization Chart (Draw on a separate sheet of paper)
4.3 Business Experience(s) and Qualifications of the Entrepreneur(s)

Annex: Entrepreneur’s Bio-data
4.4 Pre-operating Activities

Figure 4.4 Gantt Chart
Pre-Operating Activities

19

Timetable (In ________)

Activities

1

2

3

4

5

6

7

8

9

1
0

1
1

1
2

1
3

1.
2.
3.
4.
5.
6.
7.
8.
9.

4.5 Pre-operating Expenses

Table 4.5 Pre-Operating Expenses
Pre-Operating Expenses

4.6 Office Fixed Assets and Equipment

Amount

1
4

1
5

1
6

1
7

1
8

20

Table 4.6 List of Office Fixed Assets and Equipment, Number Required, Cost
and Depreciation Rate
Item

Number

Cost

Depreciation Rate

4.7 Administrative Expenses

Table 4.7 Position Items and Wage/Salary
Position Item

Section 5

FINANCIAL PLAN
5.1 Capital Requirement (Project Cost)

Table 5.1 Capital Requirement (See page 21)
5.2 Financing Plan and Loan Requirement

Wage/Salary

21

Table 5.2 Financing Plan (See page 22)
5.3 Security for Loan

Table 5.3 Particulars of Collateral Offered

Total Value of Security
* Specify whether purchase, book or market value.
Table 5.1 Capital Requirement
Investment Item
1. Fixed Assets
1.1
1.2
1.3
1.4
1.5
1.6
1.7
Sub-total
2. Pre-operating Expenses
2.1
2.2
2.3

Amount (Pesos)

Percent

22

Sub-total
3. Working Capital
3.1
3.2
3.3
3.4
3.5
3.6
Sub-total
Total

Table 5.2 Financing Plan

Items
1. Fixed Assets
1.1

Land

1.2

Building

1.3

Machinery

1.4

Vehicles

1.5

Furniture

1.6

Office
Equipment

1.7

Others

2. Pre-Operating
Expenses
4. Working Capital
3.1 Raw
Materials

Cost

Bank Loan

Equity

Sources
Other
Creditors

Total

23

3.2 Work in
Process
3.3 Finished
Goods
3.4

Accounts
Receivable

3.5 Permanent
Working
Capital
Total (Pesos)
Total (%)

5.4 Profit and Loss Statement

Table 5.4 Projected Profit and Loss Statement (See page 24)
5.5 Cash Flow Statement

24

Table 5.5.1 & 5.5.2 Projected Cash Flow Statement (See pp.28-29; monthly/annual).
5.6 Balance Sheet

Table 5.6 Projected Balance Sheet (See page 30).

Profit and Loss Statement
(For the Year Ended December 31, _________)

Gross Sales

P ____________

Less: Returns and Allowances

____________

Net Sales
Less: Cost of Goods Sold

____________

Direct Materials

____________

Direct Labor

____________

Factory Overhead

____________

Gross Profit

____________

Less: Administrative and Selling Expenses

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Operating Profit

____________

Less: Interest Expense

____________

Net Profit before Tax

____________

Less: Estimated Income Tax
Net Profit After Tax

____________
P
============

25

Cost of Goods Sold for Manufacturing
1. Direct Materials
1.1

Beginning Inventory

1.2

Add: Purchases

1.3

Cost of materials available

1.4

Less: Ending inventory

1.5

Total cost of materials used for production

2. Direct Labor
3. Factory Overhead
3.1

Depreciation

3.2

Rental

3.3

Indirect labor

3.4

Maintenance and repair

3.5

Indirect materials (e.g. packaging mat., oil)

3.6

Utilities (e.g. electricity, water)

3.7

Insurance

3.8

Others

3.9

Total manufacturing overhead ( 3.1 + up to 3.8 )

26

4. Total manufacturing cost (1.5 + 2 + 3.9 )
5. Work in process
5.1

Work-in process, beginning

5.2

Less: Work-in process, ending

5.3

Net Work-in-process

6. Cost of goods manufactured (4. + 5.3.)
7. Add: Finished goods inventory, beginning
8. Cost of goods available for sale (6. + 7.)
9. Less: Finished goods inventory ending
10. COST OF GOODS SOLD (8. - 9.)

COST OF GOODS SOLD FOR SERVICES
1. Direct Materials (e.g. food (restaurant), fuel (petrol station), paper (photocopying), room
supplies (hotel)
1.1

Beginning materials inventory

1.2

Add: Purchases + Freight-in

1.3

Total cost of materials available for operation

1.4

Less: Ending materials inventory

1.5

Total cost of materials purchased and used

2. Direct Labor
(e.g. cooks and waiters for restaurant, technicians for repair services, teachers
for language centers, washers for laundry service)
3. Operational Overhead
3.1

Depreciation
-

Building

-

Equipment

-

Furniture & Fixtures

-

Vehicles

-

Others

27

3.2

Rental

3.3

Indirect labor

3.4

Maintenance and repair

3.5

Indirect materials (e.g. flowers for hotel, restaurant)

3.6

Utilities (e.g. electricity, water)

3.7

Insurance

3.8

Others (e.g. transport)

3.9

Total operational overhead (3.1 + up to 3.8)

4. Cost of Services Sold (1.5 + 2. + 3.9)

COST OF GOODS SOLD FOR TRADING
1. Direct Materials
1.1

Beginning merchandise inventory

1.2

Add: purchases + Freight-in

1.3

Total cost of merchandise available for sale

1.4

Less: Ending inventory

1.5

Total cost of merchandise purchased and sold

2. Direct Labor
3. Operational Overhead
3.1

Depreciation
-

Building

-

Equipment

-

Furniture & fixtures

-

Vehicles

-

others

3.2

Rental

3.3

Indirect Labor

3.4

Maintenance and repair

28

3.5

Indirect materials (e.g. packaging material, stationery)

3.6

Utilities (e.g. electricity, water)

3.7

Insurance

3.8

Others

3.9

Total operational overhead

4. COST OF GOODS SOLD ( 1.5. + 2. + 3.9.)

29

Table 5.5.1 PROJECTED MONTHLY CASH FLOW STATEMENT

30
Particulars

PreOperating
Period

1

2

3

4

5

Month
6
7

Total
8

9

CASH INFLOW
Equity
Borrowings
Cash Sales
Collection of A/R
Other Income
Total Cash Inflow
CASH OUTFLOW
Pre-operating expenses
Purchase of fixed assets
Direct materials
Direct labor
Factory/operational overheads*
Inventory of raw materials
Inventory of work- in-process
Inventory of finished goods
Marketing expenses
Administrative expenses *
Interest expenses
Loan amortization
Taxes payable
Total Cash Outflow
NET CASH INFLOW (OUTFLOW)
CASH BALANCE BEGINNING
CASH BALANCE ENDING
* Excludes depreciation expenses and amortization of pre-operating expenses which are non-cash items.

10

11

12

31

Table 5.5.2 PROJECTED ANNUAL CASH FLOW STATEMENT
Particulars

Pre-Operating
Period
1

2

YEAR
3

CASH INFLOW
Equity
Borrowings
Cash Sales
Collection of A/R
Other Income
Total Cash Inflow
CASH OUTFLOW
Pre-operating expenses
Purchase of fixed assets
Direct materials
Direct labor
Factory/operational overheads*
Inventory of raw materials
Inventory of work-in-process
Inventory of finished goods
Marketing expenses
Administrative expenses *
Interest expenses
Loan amortization
Taxes payable
Total Cash Outflow
NET CASH INFLOW (OUTFLOW)
CASH BALANCE BEGINNING
CASH BALANCE ENDING
* Excludes depreciation expenses and amortization of pre-operating expenses which are non-cash items.

4

5

32

Table

5.6

Projected Balance Sheet
( As of _____________)
Pre-Operating
Period

ASSETS
Current Assets
Cash
Raw Materials Inventory
Work-in-process
Finished Goods Inventory
Accounts Receivable
Prepaid Expenses
Total Current Assets
Fixed Assets
Land
Building
Machinery & Equipment
Vehicles
Furniture & Fixtures
Less: Accum. Depreciation
Net Fixed Assets
Total Fixed Assets
Other Assets
Pre-operating expenses
Goodwill
Patents

TOTAL ASSETS
LIABILITIES
Current Liabilities
Accounts Payable
Loans Payable
Total Current Liabilities
Long-Term Liabilities
Loans Payable
Total Long-term Liabilities

OWNER’S EQUITY
Capital Beginning
Accumulated Capital
Add: Net Profit after Tax
Less: Withdrawal/ Dividends
Total Owner’s Equity

TOTAL LIABILITIES AND EQUITY

YEAR
1

2

3

4

5

33

5.7 Loan Repayment Schedule

Table 5.7 Loan Repayment Schedule

____

Principal at
Beginning

______
Installment

1
2
3
4
5
6
7
8
9
10
11
12

5.8 Break-even point (BEP)

5.9 Return on Investment (ROI)

Interest
Paid

Principal
Paid

Principal
at End

34

5.10 Financial Analysis (Ratio Analysis: Current Ratio, Debt-Equity Ratio, Sensitivity
Analysis)

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