ENTREPRENEUSHIP 12

CHAPTER 1: PLANNING THE ENTERPRISE

What is a Business Plan for?

- It serves entrepreneurs who plan to enter any business endeavor must have a business plan on
hand to guide them throughout the process.
- It serves investors and cautious financiers about the soundness and potential of their business.
- It serves the mangers and staff of the organization so that they will know the strategies and
programs of the enterprise.

Format of a business plan for a good start:

I. Introduction
A. The Business Concept and the Business Model
B. The Business Goals: Vision, Mission, Objectives, and Performance Targets
C. The Business Offering and Justification
II. Executive Summary
III. The Business Proponents: Organizers with their Capabilities and Contributions
IV. The Target Customers and the Main Value Proposition to the Customer
V. The Market, Market Justification based on the industry Dynamics and the Macro
Environmental Factors Affecting the Opportunities and Threats in the Market, the Size,
Potential and Realistic Share of the Market
a. The Product and Service Offerings
VI. The Enterprise Strategy and Enterprise Delivery Systems: Business Competitieness
VII. The Financial Forecasts and Expected Returns, Risk, and Contingencies
VIII. Environmental and Regulatory Compliance
IX. The Capital Structure and Financial Offering: Returns and Benefits to Investors financiers,
and Business Partners.

CONTENTS OF THE BUSINESS PLAN

1. The Business Concept and the Business Model – contains the essence of the enterprise in a
concise but powerful manner. It stresses the value of the product offering to the target
customers who would most likely buy it.
2. The Business Goals: Vision, Mission, Objectives, and Performance Targets – the business goals
show the future and long term prospects of the enterprise.
3. Executive Summary – contains everything that is relevant and important to the business
audience. It must contain the major argumentations of the business proponent on why the
business will work and succeed.
The executive summary should introduce and highlight the good qualities of:
a. The business proponents and their partners
b. The enterprise organization and its capabilities.
c. The technology providers and their expertise and experiences.
d. The suppliers and all the major service providers.
4. The Business Proponents – The third section of the business plan contains information about
the business proponents or stakeholder.
4 Types
a. Resource mobilizers and financial backers
b. Technology providers and applicators
c. Governance and top management
d. Operating and Support Team.
5. The Target Customers and the Main Value Proposition to the Customer – the fourth section of
the business plan
 Target Customers – must be of sufficient size, sufficient paying capacity and have
sufficient interest to purchase the products being offered by the enterprise.
Main Value Proposition – is the unique selling proposition of the enterprise.
6. Market Demand and Supply, Industry Dynamics, and Macro Environmental Factors - the fifth
section of the business plan
Social environment – includes the demographics and cultural dimensions that govern the
relevant entrepreneurial behavior.
Political environment – defines the governance system of the country or the local area of the
business.
Economic Environment – is mainly driven by supply and demand forces.
Ecological environment – includes all natural resources and the ecosystem that defines the
habitat of man, animals, plants, and minerals.
Technological environment –new scientific and technological discoveries often lead to the
launch and commercialization of new products with superior attributes or to rendering the old
ones obsolete.
7. The Product and Service Offering: Description, Evolution, and Justification – The sixth section
of the business plan where products and services must be described by highlighting the features
and attributes that would most appeal to the target customers.
8. The Enterprise Strategy and Enterprise Delivery Systems
Enterprise Strategy (ES) - mapping the competitive landscape and by situating the enterprise
and its competitors as to their strategies and chosen positioning.
Enterprise Delivery System (EDS) – starts from the Input (resources mobilized) proceed to the
Throughput (the transformation process where inputs are converted to output), and produces
the Output (the products and services). Output are the marketed to the customers then
customer satisfaction, profit generated, and the performance of the people from the transaction
are the Outcomes of EDS.
9. The Financial Forecasts and Expected Returns, Risk, and Contingencies – the eight section of
the business plan where it should calculate the expected returns from the business:
a. Expected return on sales
b. Expected return on assets or investments
c. Expected return on stockholder’s equity

- should also calculate the long term returns, using time value of money.
- should then evaluate both the business risks and the financial risk involved.

10. Environmental and Regulatory Compliance – the ninth part of the business plan where the
business plan must articulate the laws, rules, and regulations governing the business, and the
industry that the enterprise is in. The business plan should also assure the reader that all
necessary local government ordinances and barangay ethics would be followed by the
enterprise.
11. The Capital Structure and Financial Offering: Returns and Benefits to Investors financiers, and
Business Partners – the tenth section of the business plan contains the capital structure and
financial offerings of the enterprise including some discussions on who are the investors, the
financiers, and the partners of the enterprise.