Chapter 8

Drafting and Finalization of the Business Plan

Prepare/Draft a business plan of your proposed small business using the format
below as guide.

Major Parts of a Business Plan

Though there is no universally accepted standard format or structure of the
business plan, this learning module adopts the following format for the major parts of the
business plan.
1. Introduction
2. Executive Summary
3. Environmental Analysis
4. Business Description
5. Organizational plan
6. Production plan
7. Operation plan
8. Marketing plan
9. Financial plan

In the introduction, answer the following questions in a single paragraph. Aim for
clarity and simplicity in this part.
Basic Questions:
 What is the name of your company?
 Where is it located? Where will we grow?
 What general type of business is this?
 What is the status of the business?
(Start up, expansion or take-over?)
 What is the business form? (Sole proprietorship, partnership,
Corporation or Limited Liability Company?)
 What are your products?
 Who are (will be) your customers?

1
Tasty Coffee Business is a business with a new system where hot and cold coffee
drinks will be provided to customers in an efficient way.

Tasty Coffee Business is a specialty beverage retailer that will provide customers
with opportunity to drive up to its facility and order their choice of coffee and other
drinks.

Tasty Coffee Business is a start-up business formed by partnership.

Tasty Coffee Business specializes in coffee and other custom drinks while offering
the best hot and cold drinks to its customers.

The business will be focusing majorly on two types of customers which are:

(1) Captive Consumer: Customers who reside in a restricted environment that does

not allow convenient departure and return when searching for refreshments and
environments where refreshments are an important part of the environment are
known as captive consumers.
(2) Daily Commuter: This refers to customers that goes to and from work,
customers that deliver goods and services, customers that go for shopping and those
that are just out for a drive.
These two markets will be penetrated to increase sales and patronization by
deploying mobile facilities and drive through facilities in the most accessible and
logical locations.

2
 Executive Summary

The executive summary must include the following sections:

 Vision, mission, goals, and objectives of the business
 Business model
 Business and product position
 Wealth improvement approaches
 Parties supporting the business
VISION STATEMENT
The business vision is to establish a very good coffee cart business to stand as
a one stop location coffee business patronized by all citizens. Also, we will try
our possible best to offer products and services at affordable prices.
MISSION STATEMENT
T mission statement of Tasty Coffee Business is to become one of the
best and most popular mobile coffee cart business in the whole of
California and in neighboring cities.

Below are the objectives of Tasty Coffee Business:

(1) To develop a business that is sustainable enough and also contribute

to the employment rate and economy of the community where the
business is located.

(2) Establishing a business that goes beyond the expectations of its

clients.
(3) To achieve healthy and good profits in the early years of the business’
operation

Environmental Analysis

Environmental Analysis includes the following sections:

 Trend in the Industry
 Consumer Analysis
 Market Segmentation
 Demand Analysis
 Competitor Analysis
 Supply Analysis
 Market Forecast
  Demand and Supply Forecast
 Market Share
 Market Position
 Marketing Strategy

Business Description
This section shall describe the product to produce, the equipment needed
in the small business, the size of the business in terms of capitalization and scope,
and the personnel required to handle the operation.

 Product Description
  Equipment/Materials Needed
 Size of the Business
 Personnel Requirement
Organization Plan
The organization plan provides a detailed description in terms of the following:

 Form of the business

 Liability of the owner
 Organization structure
 Roles and responsibilities
 Salary requirements

Production Plan

The production usually includes the following:

 Production schedule
 Production process
 Processing plant and equipment
 Sources of materials
 Production cost

Operation Plan
The operation covers the following areas:
 Evaluation of suppliers
 Materials reacquisition and receiving procedures
 Storage and inventory control system
Marketing Plan
The marketing plan consist of the following sections:
 Product
 Place
 Price
 Promotion
People
 Packaging
 Positioning
Financial Plan
The financial plan is composed of the following areas:
 Major assumptions
 Financial statements
 Financial statement analysis