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Sections of the Business Plan

(Chapter 1 – Introduction)
I. Introduction to Business Plan
Business Plan is defined as a detailed and integrated written document that describes the
various activities involved in opening and operating a new entrepreneurial venture. In case the
business project is relatively large in terms of financing or funding requirements, the
entrepreneur usually seeks the assistance of consultants. However, concept of business plan
preparation is more applicable to a small business that the learner is expected to open as the
final major requirement of the course in entrepreneurship.
The Need for a Business Plan
The business plan is prepared using a scientific approach in determining possible business
situations considering the different perspectives of people who are interested in the business.
Though the perspective of the entrepreneur has the major influence on the business plan, he/
she nonetheless must still consider the views of the customers, creditors, and even the
employees and staff. He/She must gather sufficient and relevant information to support any
perception or conclusion.
The business plan is actually the roadmap of the new business. It is the roadmap of the
entrepreneur. It is the only single written document that must be prepare before opening a
business or expanding an existing business. It provides a clear direction to any uncertain
business endeavor.
Introduction
The introduction presents the general perspective of the business. It includes, among others,
the following sections:
1. Proposed name of the business
2. Logo of the business
3. Name of the owner or owners
4. Description of the business
5. Location of the business
6. Funding requirement and source

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Proposed Name of the Business

The formulation and drafting of the proposed business name are not as simple as it sounds.
It is a delicate and important entrepreneurial task. Remember that the name of the business
may exist in the market for many years. Careful and in-depth planning is of prime importance.
The proposed business name must
1. reflect the business identify and image,
2. promote the philosophical values and culture that the business values the most,
3. profess the brand identity of the product, and
4. attract or influence the target consumers.
At least three suggested trade names must be submitted to the Department of Trade and
Industry for approval and registration.
Logo of the Business
A business logo is a symbol of your company’s identity. It creates your customers’ first
impression of your company. The best logos send a message to customers about the company’s
values, create brand loyalty and give company letterhead, vehicles and signs a more
professional appearance.
Some company logos convey a message with no words or explanation required, such as
Mr. Clean, who represents strength. Others are fun or memorable once consumers associate
the logo with a particular product or service. Popular logos and brands go hand in hand after
the connection is established.
Types of Logos
The three basic kinds of logos are font-based, literal illustrations and abstract symbols.
Some logos use a combination of these types.
• Font-based logos consist of just the company name in a carefully chosen font that
makes it stand out.
• Literal illustrations, such as a loaf of bread alongside the name of a bakery, simply
send a message about what that company does.
• Abstract symbols, such as Nike’s swoosh, are immediately identified with the
company’s brand and image that promotes an athletic way of life.

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Using just a symbol as a logo is a risky move as it requires customers to immediately

associate your company with that symbol, whereas a font-based logo allows consumers to
recognize new companies by their name.
Name of the Owner
The name of the owner must be properly stated. In a sole proprietorship, there is only one
owner. In case the venture is a partnership, the names of the partners, including the extent of
their liabilities, must be indicated. For example, if a partner's contribution takes the form of a
service, a description like industrial partner or limited partner must be properly mentioned. For
business ventures that will operate as a corporate entity, the names, nationalities, and addresses
of the incorporators must be given. Incorporators are persons who originally formed the
corporation.
Description of the Business
A brief description of the business must include information about the type of product or
service that the business intends to produce or provide. It may include a brief information about
the ultimate mission, vision, and objectives of the business. The other products or services that
the business plans to produce or provide must also be mentioned in the description of the
business.
Address and Location of the Business
There are no rigid rules in the selection of the business location since several variables
affect the selection of the business location. The basic entrepreneurial consideration is to place
the proposed business in a strategic location that will assure competitive advancement.
What is the difference between the sections Address of the Business and Location of the
Business?
The Address of the Business simply states the exact business address. No additional
description is provided to highlight the exact business address. The Location of the Business
indicates the reason/s for the selection of the location. In case the processing plant is not within
the vicinity of the business, its exact location must also be described.
The following factors should be considered when deciding on the location of the proposed
business:
1. Proximity to the target consumers
2. Distance from the sources of raw materials, labor, and utilities

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3. Availability and cost of transportation

4. Peace and order situation
5. Presence of direct competitors
6. The geographic and climatic conditions.
Funding Requirement and Source
The estimated total initial cost of the business venture must be clearly indicated. It should
include the projected breakdown or allocation of the total cost, e.g., how much will be for
building, fixtures, equipment, supplies, and working capital. This section also presents the
source or sources of funds. The initial cost of the investment may be provided solely by the
owner or owners or partly by the owner and creditors. The estimated period to settle the funding
source provided by creditors must also be mentioned.
Vision, Mission, and Objectives
At the very outset, the business plan must depict the fundamental characteristics, nature I
philosophical values, identity, and image of the business. These important concerns are
embodied in the vision, mission, and goals, of the business. They must be clearly stated and
easily understood. They must be reviewed and revisited at least every three years to determine
whether they are still reasonable and achievable in view of the rapid changes in the business
community.
Vision Statement
This is what your company aspires to be. In many cases, this will look very different from
a company’s mission statement. A mission statement is what you do now, a vision statement
is what you want to be doing tomorrow and in the future. When done right, your vision
statement can and should drive decisions and goals in your company. Here are some great
examples:
Disney: “To make people happy”
Ford: “To become the world’s leading Consumer Company for automotive products and
services.”
Avon: “To be the company that best understands and satisfies the product, service and self-
fulfillment needs of women—globally.

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Mission Statement
This is what your company actually does. Keep it short and sweet, and easy to memorize.
It’s tempting to use fancy words that sounds good but end up not meaning much. Your mission
statement should be specific enough that people understand what you do and how you differ
from your competitors. Consider these mission statements of well-known organizations:
Public Broadcasting System (PBS): “To create content that educates, informs and inspires.”
Google: “To organize the world’s information and make it universally accessible and useful.”
Make-A-Wish: “We grant the wishes of children with life-threatening medical conditions to
enrich the human experience with hope, strength and joy.”
Objectives
This works by first setting high level objectives, which align with your vision statement.
However, while vision statements can be general, these objectives should be specific and
measurable. Rather than aiming to “Have the best product ever” consider aiming to “Add two
new developers”.

Reference:
Aduana, N. (2017). Entrepreneurship in Philippine Setting for Senior High School. C & E Publishing, Inc.
What Is a Company Logo? (June 21, 2021) Retrieved from https://smallbusiness.chron.com/create-powerful-logo-
14944.html
The Difference Between Core Values, Mission & Vision Statements, and Goals. (May 25, 2021). Retrieved from
7geese.com: https://7geese.com/the-difference-between-core-values-missionand-vision-statements-and-goals/

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