Entrep Pre Finals and Final Module

TCI S.Y.
the.entrepreneurial.mind 2020-2021
TANCHULING COLLEGE, INC.

Imperial Court Subdivision, Phase II,
Legazpi City 4500 Philippines
Tel. # 480-61-06/480-25-13
http://www.tanchuling.edu.ph
ORIENTATION VIDEO : https://tinyurl.com/ProfRYA N

FB Account: RYAN MENDINA
Email Account: ryanmendina@tanchuling.edu.ph
Contact Number: 0929-437-6523
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Tanchuling College are committed to provide a sound

foundation in basic education which follows through into an
exemplary secondary and tertiary education that will equip our
students not only to become competent but to standout as
active members of our workforce.
The Tanchuling College Inc will be a school that provides

complete and quality education from Kindergarten to College,
whose graduates are known to excel in their c hosen fields of
practice, globally competitive ethical and intellectual leaders.
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The Tanchuling College of Hospitality Management aims to

be recognized as the leading institution on Legazpi for
excellence in the development of graduates in the hospitality
disciplines.
The College of Hospitality Management will produce individuals

who possess the competence to lead, proactive in national
building, socially responsible, and are highly skilled and globally
competent in the field of hospitality management.
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PERIOD ACTIVITY REMARKS
Checking of Preliminary Outputs

Week 1 Preparation and Distribution of
Pre Final/ Final Modules
Uploading the Modules and

Activities to Google
Classroom
Chapter IV: THE BUSINESS PLAN
Week 2
NOTE: Power point
Presentation/Pre Uploaded
Video will be uploaded via
Google Classroom on
December 4, 2021
PREPARATION AND
Week -3-4 SUBMISSION OF OUTPUTS
Week 5 PRE- FINAL/FINAL EXAMINATION
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Prof. Ryan B. Mendina
About the Professor

- Graduate of Bachelor of Science in Business Administration Major in
Human Resource Development Management
- 2015 Leadership and Service Awardee at San Jose Community
College
- With 27 units in Master in Business Administration at Daniel B.

Peña Memorial College Foundation, Tabaco City
- Completed Academic Requirements in Master in Cooperative
Management and ongoing thesis writing at Bicol University Graduate
School, Legazpi City
- Completed 18 units Methods of Teaching at Dr. Ruby Lanting

Casaul Educational Foundation Incorporated
- (CSC) Career Service Passer- Professional Level
- Former College Professor at DRLCEFI
- Event Host, Organizer and Facilitator
- Head Coordinator of Beyond Imagination Events Planning and

Services
- Human Resource Officer of Tanchuling College Inc.
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TCI MV 2
BSHM VMO 3
Calendar of Activities 5
About the Professor 6
Table of Contents 7
Chapter 4: THE BUSINESS PLAN

8
EXECUTIVE SUMMARY
10
THE COMPANY DESCRIPTION

13
MARKET ANALYSIS
15
THE ORGANIZATION AND MANAGEMENT
18
THE PRODUCT AND SERVICE LINE
24
MARKETING AND SALES 28
FUNDING REQUEST 33
FINANCIAL PROJECTION 37
APPENDIX 41
ACTIVITY 43
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CHAPTER IV
THE BUSINESS PLAN
WHAT IS A BUSINESS PLAN?

A business plan is a written document that describes in
detail how a business usually a startup — defines its
objectives and how it is to go about achieving its
goals. A business plan lays out a written roadmap for
the firm from each of a marketing, financial, and
operational standpoint.
Business plans are important documents used to

attract investment before a company has established
a proven track record. They are also a good way for
companies to keep themselves on target going
forward.
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Although they're especially useful for new businesses,

every company should have a business plan.
Ideally, the plan is reviewed and updated periodically

to see if goals have been met or have changed and
evolved. Sometimes, a new business plan is created
for an established business that has decided to move
in a new direction.
ELEMENTS OF A BUSINESS PLAN

The length of the business plan varies greatly from
business-to-business. All of the information should fit
into a 15- to 20-page document. If there are crucial
elements of the business plan that take up a lot of
space—such as applications for patents—they should
be referenced in the main plan and included as
appendices.
As mentioned above, no two business plans are the
same. But they all have the same elements. Below are
some of the common and key parts of a business plan.
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EXECUTIVE SUMMARY
The executive summary goes near the beginning of

the plan but is written last. It should provide a
short, concise and optimistic overview of your business
that captures the reader's attention and gives them
an interest in learning more about it.
An executive summary of a business plan is an

overview. Its purpose is to summarize the key points of
a document for its readers, saving them time and
preparing them for the upcoming content.
What Information Goes in an Executive Summary?
The information you need to include varies somewhat

depending on whether your business is a startup or
an established business.
For a startup business typically one of the
main goals of the business plan is to convince
banks, angel investors, or venture capitalists to invest
in your business by providing startup capital in the form
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of debt or equity financing. In order to do so you will

have to provide a solid case for your business
idea which makes your executive summary all the
more important. A typical executive summary for a
startup company includes the following sections:
✓ The business opportunity - describe the need or

the opportunity.
✓ Taking advantage of the opportunity - explain
how will your business will serve the market.
✓ The target market - describe the customer base
you will be targeting.
✓ Business model - describe your products or
services and what will make them appealing to
the target market.
✓ Marketing and sales strategy - briefly outline your
plans for marketing your products/services.
✓ The competition - describe your competition and
your strategy for getting market share. What is
your competitive advantage, e.g. what will you
offer to customers that your competitors cannot?
✓ Financial analysis - summarize the financial
plan including projections for at least the next
three years.
✓ Owners/Staff - describe the owners and the
key staff members and the expertise they bring to
the venture.
✓ Implementation plan - outline the schedule for
taking your business from the planning stage to
opening your doors.
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For established businesses the executive summary

typically includes information about
achievements, growth plans, etc. A typical executive
summary outline for an established business includes:
• Mission Statement – Articulates the purpose of
your business. In a few sentences describe what
your company does and your core values and
business philosophy.
• Company Information – Give a brief history of your
company - describe your products and/or
services, when and where it was formed, who the
owners and key employees are, statistics such as
the number of employees, business locations, etc.
• Business Highlights – describe the evolution of the
business - how it has grown, including year-over-
year revenue increases, profitability, increases in
market share, number of customers, etc.
• Financial Summary – if the purpose of updating
the business plan is to seek additional
financing for expansion, then give a brief financial
summary.
• Future goals – describe your goals for the business.
If you are seeking financing explain how
additional funding will be used to expand the
business or otherwise increase profits.
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THE COMPANY DESCRIPTION
WHAT IS A BUSINESS DESCRIPTION?
A company description provides an overview of key

aspects of your business, like what you do and what
makes your business unique. Anyone reading your
business description should have no problem
understanding the scope of your business.
Lenders and investors should see how your business

has a place in the market, as well as its benefits to
future customers.
Your business’s mission statement is the part of your

company description that you want the public to
see. And, you should include your vision statement,
too.
Regularly update your company description as your

business expands or changes.
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The company description of a business plan should

include:
• Business name
• Location
• Legal structure (i.e., sole proprietorship, LLC, S
Corporation, or partnership)
• Management team
• Mission statement
• Company history (when it started and important
milestones)
• Description of products and services and how
they meet the needs of the marketplace
• Target market (who will buy your product or
services)
• Competitive advantage (what sets you apart in
the marketplace to allow you to succeed)
• Objectives and goals (plans for growth)
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MARKET ANALYSIS
Market Analysis for Your Business Plan

A business plan is the blueprint for taking an idea for a
product or service and turning it into a commercially
viable reality. The market analysis section of your plan
provides the evidence that there is a niche in the
market that your company can exploit. This analysis
provides the foundation on which your marketing and
sales plan will rest.
The core components of the market analysis are:
• an industry analysis, which assesses the general
industry environment in which you compete.
• a target market analysis, which identifies and
quantifies the customers that you will be
targeting for sales.
• a competitive analysis, which identifies your
competitors and analyzes their strengths and
weaknesses.
The precise way in which you choose to organize this
information is up to you. As long as you include all the
basic facts, there are a number of outline forms that
can work well.
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Just keep the purpose of your plan in mind, and

highlight or expand the sections that have the
greatest application to what you're trying to
accomplish.
It's also important to realize that, as you go about
planning a business startup or expansion, you should
be doing a lot of research and learning an enormous
amount about its marketing environment. Your
business plan is not intended to include everything
you've learned. It will just summarize the highlights, in a
way that shows the reader that you understand your
industry, market and individual business.
THE INDUSTRY
The industry analysis is the section of your business plan
in which you demonstrate your knowledge about the
general characteristics of the type of business you're
in. You should be able to present some statistics about
the size of the industry
THE TARGET MARKET
How do you determine if there are enough people in
your market who are willing to purchase what you
have to offer; at the price you need to charge to
make a profit? The best way is to conduct a
methodical analysis of the market you plan to reach.
You need to know precisely who your customers are,
or will be.
For example, if you sell to consumers, do you have

demographic information (e.g., what are their
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average income ranges, education, typical

occupations, geographic location, family makeup,
etc.) that identifies your target buyers?
What about lifestyle information (e.g., hobbies,
interests, recreational/entertainment activities,
political beliefs, cultural practices, etc.) on your target
buyers?
You may very well sell to several types of customers--
for example, you may sell at both retail and wholesale,
and you may have some government or nonprofit
customers as well. If so, you'll want to describe the
most important characteristics of each group
separately.
THE COMPETITION
In the industry overview section of your business plan,
you may have identified the largest players in your
industry. Not all of these businesses will be directly
competing with you, however. Some may be located
in geographically distant locations, and others may
have pricing or distribution systems that are very
different from those of a small business.
Therefore, in your competition analysis, you'll focus on
those businesses that directly compete with you for
sales--the specific companies or brands that are direct
competitors to your product or service, in your
geographic locality. In many cases, these competitors
offer a product or service that is interchangeable with
yours in the eyes of the consumer (although, of course,
you hope you hold the advantage with better quality,
more convenient distribution, and other special
features).
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THE OGRANIZATION AND MANAGEMENT
This section of your business plan, Organization and

Management, is where you’ll explain exactly how
you’re set up to make your ideas happen, plus you’ll
introduce the players on your team.
As always, remember your audience. If this is a plan

for your internal use, you can be a little more general
than if you’ll be presenting it to a potential lender or
investor.
No matter what its purpose, you’ll want to break this

section into two segments: one describing the way
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you’ve set up the company to run (its organizational

structure), and the other introducing the people
involved (its management).
Business Organization
Having a solid plan for how your business will run is a
key component of its smooth and successful
operation. Of course, you need to surround yourself
with good people, but you have to set things up to
enable them to work well with each other and on
their own.
It’s important to define the positions in the company,

which job is responsible for what, and to whom
everyone will report. Over time, the structure may
grow and change and you can certainly keep
tweaking it as you go along, but you need to have
an initial plan.
If you’re applying for funding to start a business or

expand one, you may not even have employees to
fit all the roles in the organization. However, you can
still list them in your plan for how the company will
ideally operate once you have the ability to do so.
Obviously, for small businesses, the organization will

be far more streamlined and less complicated than it
is for larger ones, but your business plan still needs to
demonstrate an understanding of how you’ll handle
the work flow. At the very least, you’ll need to touch
on sales and marketing, administration, and the
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production and distribution of your product or the

execution of your service.
For larger companies, an organizational plan with

well-thought-out procedures is even more important.
This is the best way to make sure you’re not wasting
time duplicating efforts or dealing with internal
confusion about responsibilities. A smooth-running
operation runs far more efficiently and cost-
effectively than one flying by the seat of its pants,
and this section of your business plan will be another
indication that you know what you’re doing.
A large company is also likely to need additional

operational categories such as human resources and
possibly research and development.
One way to explain your organizational structure in

the business plan is graphically. A simple diagram or
flowchart can easily demonstrate levels of
management and the positions within them, clearly
illustrating who reports to whom, and how different
divisions of the company (such as sales and
marketing) relate to each other.
Here is where you can also talk about the other levels
of employees in your company. Your lower-level staff
will carry out the day-to-day work, so it’s important to
recognize the types of people you’ll need, how
many, what their qualifications should be, where
you’ll find them, and what they’ll cost.
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If the business will use outside consultants, freelancers,

or independent contractors, mention it here as well.
And talk about positions you’d want to add in the
future if you’re successful enough to expand.
Business Management
Now that we understand the structure of your

business, we need to meet the people who’ll be
running it. Who does what, and why are they on
board? This section is important even for a single
practitioner or sole proprietorship, as it will introduce
you and your qualifications to the readers of your
plan.
Ownership
Start at the top with the legal structure and ownership
of the business. Whether you’re in a partnership or are
a sole owner, this is where to mention it.
List the names of the owners of the business, what

percent of the company each of them owns, the
form of ownership (common or preferred stock,
general or limited partner), and what kind of
involvement they’ll have with day-to-day operations;
for example, if they’re an active or silent partner.
Management
Here’s where you’ll list the names and profiles of your
management team, along with what their
responsibilities are. Especially if you’re looking for
funding, make sure to highlight the proven track
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record of these key employees. Lenders and investors

will be keenly interested in their previous successes,
particularly in how they relate to this current venture.
Include each person’s name and position, along with

a short description of what the individual’s main
duties will be. Detail his or her education, and any
unique skills or experience, especially if they’re
relevant to the job at hand. Mention previous
employment and any industry awards or recognition
related to it, along with involvement with charities or
other non-profit organizations.
Think of this section as a resume-in-a-nutshell,

recapping the highlights and achievements of the
people you’ve chosen to surround yourself with.
Actual detailed resumes for you and your
management team should go in the plan’s
appendix, and you can cross reference them here.
You want your readers to feel like your top staff
complements you and supplements your own
particular skill set. You also want readers to
understand why these people are so qualified to help
make your business a success.
This section will spell out the compensation for

management team members, such as salary,
benefits and any profit-sharing you might be offering.
If any of the team will be under contract or bound by
non-compete agreements, you would mention that
here, as well.
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Board
If your company will have a Board of Directors, its
members also need to be listed in the business plan.
Introduce each person by name and the position
they’ll hold on the board. Talk about how each might
be involved with the business (in addition to board
meetings.
Similarly, to what you did for your management

team, give each member’s background information,
including education, experience, special skills, etc.,
along with any contributions they may already have
had to the success of the business. Include the full
resumes for your board members in the appendix.
Alternately, if you don’t have a Board of Directors,

include information about an Advisory Board you’ve
put together, or a panel of experts you’ve convened
to help you along the way. Having either of these, by
the way, is something your company might want to
consider whether or not you’re putting together a
business plan.
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THE PRODUCT AND SERVICE LINE
The products and services section of your business

plan is more than just a list of what your business is
going to provide. Especially if you intend to use
your business plan to get funding or find partners,
your products and services section needs to
showcase the quality, value, and benefits your
business offers.
What's Included in the Products and Services Section
The products and services section of your business

plan outlines your product or service, why it's needed
by your market, and how it will compete with other
businesses selling the same or similar products and
services. Your product and services section should
include:
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• A description of the products or services you are

offering or plan to offer
• How your products and services will be priced
• A comparison of the products or services your
competitors offer in relation to yours
• Sales literature you plan to use, including
information about your marketing materials and
the role your website will play in your sales efforts
• A paragraph or so on how orders from your
customers will be processed or fulfilled
• Any needs you have in order to create or deliver
your products, such as up-to-date computer
equipment
• Any intellectual property, such as trademarks, or
legal issues you need to address
• Future products or services you plan to offer
Tips for Writing About Your Products and Services
This section of your business plan should excite those

you're hoping will fund your business or work with you.
To that end, here are a few tips to create a products
and services section that appeals to the reader:
• Indicate why your product or service is
needed. Especially if you're venturing into a new
concept or invention, or a place where there is
no current market, you need to explain the need
for your product or service.
• Highlight the features of your product or
service. A crucial part of success in business is the
ability able to set yourself apart from other
businesses that sell the same or similar products
and services. What features, such as price point
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or level of service, do you offer that is unique to

you?
• Focus on benefits. Unique features are important,
but even more vital is how those features provide
value to consumers. Translate your features (i.e.,
faster or cheaper) into benefits (i.e., get it now or
save money).
The goal is to highlight how your product or
service will fix a problem or improve a client or
customer's life.
• Be clear and concise. Don't let your business plan
get bogged down in too much description and
information. Use bullets or numbered lists to
quickly and easily highlight important
information.
• Show off your expertise, experience, and
accolades. You not only want to describe your
products and services but also share why you're
the best person to provide them. Include
anything in your education or experience that
makes you an expert in this business. If you have
testimonials, awards, or endorsements, share
those. Finally, if you've applied for a patent,
copyright, or trademark, include that as well.
• Be the expert, but talk in layman's terms. You
should know your product, service, and industry
well, but don't expect your potential funders and
partners to have the same level of knowledge.
Assume the reader doesn't know as much as you
when you explain what you're offering. Avoid
acronyms and jargon when outlining your
products and services.
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• Indicate anything extra special about what or

how you'll provide your products or services. Will
you be offering a special guarantee or refund
policy? Do you have a quicker or more unique
way of delivering your product or service?
• Write as if you're talking to your customer. While
you don't want to write an advertorial, you do
want to be customer-oriented when you write
your products and services section.
The business plan products and services section is the
centerpiece of your plan. While other sections of your
business plan are important, the products and
services section is the essence of your business and
the point around which every other part of
the business plan is built.
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MARKETING AND SALES
Before starting your business, it's important to outline

all the details in a business plan. Creating the plan
not only forces you take a good look at all aspects of
your business, from financial, to target market, and
more, but also, it becomes the roadmap for your
success.
One of the most important sections of a business plan
is Marketing and Sales Strategies, which outlines your
plan for reaching and selling to your target market.
While you want to have a wonderful product or
provide stellar service, it's all for nothing if you don't
have customers and clients. Your marketing plan is
the key to effectively and affordably finding your
buyers, making it a crucial section that lenders and
investors review before giving you startup money.
Why You Need a Business and Marketing Plan
There is some debate regarding the need for home

business owners to have a formal business plan,
especially if you're not asking for startup funding.
However, a business plan isn't only about appealing
to banks and investors. The truth is, every business,
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regardless of size needs a business plan. A business

plan helps you:
• Determine where you are now in relation to

where you want to go in your business
• Identify needed resources to start and run your
business
• Develop clarity and focus on what needs to be
done
• Gain insight to and understanding of your
industry, market, and more
• Calculate start up costs and what you need to
charge to build a profitable business
• Hone in on your offer, how its different from your
competitors, and how it benefits your potential
client/customer
• Obtain financing
• Decide if you need to hire or contract outside
help
What to Include in the Marketing &

Sales Strategies Section
The basics of the marketing and sales section have to

do with knowing your market and competition, and
designing your product messaging, pricing, and other
marketing strategies to maximize sales. It involves
the 5 P's of marketing, as well as figuring out how
you'll measure your marketing mix's success.
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Here are the 5 P's of marketing:

• Product – Describe the product or service offered
to the customer by your home business, including
the physical attributes of your products or
services, what they do, how they differ from your
competitors and what benefits they provide to
your potential customers.
• Price – Outline your pricing strategies that will
help you reach your target profit margin. How
you will price your product or service so that the
price remains competitive while still allowing you
to make a good profit? When calculating price,
make sure you take into consideration both fixed
expenses (those that don't change) and variable
expenses (costs that aren't set), as well as your
time and expertise, to insure you're charging
enough to make a profit. Also discuss if your price
will be lower or higher than your competition,
and how you can justify the difference (i.e. what
do buyers get by paying more for your
product?).
• Place (Distribution) – Indicate where your business
will sell its products or services, and how it will get
those products or services to consumers. For
example, will you sell online? Will you consign
your products into local stores? When you know
what outlets our product and services will be
available, indicate how much you expect to sell
in each location. For example, will 65 percent of
your sales be done online and 35 percent
through face-to-face appointments? Also
include any delivery terms and costs, and how
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those expenses will be covered (i.e. added to the

sale of the item).
Indicate if there any shipping or labeling

requirements that need to be considered and
how you will meet those requirements. Finally,
outline the transaction process and your return
policies.
• Promotion – What methods of promotion you will
use to communicate the features and benefits of
your products or services to your target
customers? Will you advertise? If so, where? What
percentage of advertising will be handled by
each advertising option? How much business do
you anticipate each form of advertising will result
in? How much is this all going to cost? Also
indicate if you plan to offer coupons or other
incentives to get customers in the door.
• People – Decide your sales strategy and the
people who will provide sales and service that
will be used in marketing your products or
services to the customer. Who are the people
or sales team that will be providing this service,
and what kind of sales training will they receive?
Do you plan to offer any incentives to
your customer service representatives and how
do you plan to measure customer satisfaction?
Essentially, the 5 P's of marketing forms the basis of

your marketing plan. If you want to make your
marketing plan a standalone document, you'll also
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want to include the information you prepared in

the Market Analysis section for your business plan.
Evaluating Marketing Effectiveness

As you make your marketing decisions, consider how
you'll know what strategies are working and those
that aren't. There's no sense in wasting time or money
on promotional tactics that don't work. If you use
social media to promote your business, you'll want to
measure your social media analytics. Consider
using A/B testing techniques to make sure you're
using your best offers. Whatever form of marketing
you use, find a way to quantify results so you can
know whether it's worth your time and money to
continue to use it.
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FUNDING REQUEST
We’ve talked before about the benefits of having a

business plan for every business, but the truth is, most
companies don’t put one together until they want to
apply for funding, whether from a bank or investor.
Sometimes, even if you don’t need a full business
plan when applying for a loan, you will be asked for a
funding request. You can also follow the guidelines
below to prepare a stand-alone proposal to present
to a potential lender with your application.
If the purpose of your business plan is NOT to get

funding, feel free to skip this section.
As we’ve said before about writing a business plan,

it’s important to keep your audience in mind. You
can certainly prepare different versions of your
funding request depending on whether you’re
applying for a loan or approaching an investor. The
terms of each would be different, and you might be
looking for different amounts of money or types of
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funding, especially if you’re approaching several

potential partners.
Be clear about whom you’re directing the request to,

and think about the questions they might have and
what they would want to see. Make sure you’ve
done your homework regarding the costs involved
with your plans. This is where the financial section of
your plan will work hand in hand with this one. Be
consistent with your numbers, and ask for enough to
cover your needs fully so you don’t fall short and
remain unable to complete your goals. At the same
time, don’t ask for more than you need.
What to Include in Your Funding Request
1. A summary of the business.

If the request is part of your business plan, you will
have already put together all the information found
in a business summary. If you’re creating a funding
request as a stand-alone document, explain what
the company is, where you’re located, what you sell
or what services you offer, and who your customers
are. Mention whether you’re incorporated, and if so,
what type of corporation it is, along with who the
owners and key staff members are. Briefly list your
business successes and accomplishment thus far.
2. How much money you’re requesting.

How much cash are you looking for now, and if you
anticipate this being the first part of an ongoing
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growth plan, how much more money do you plan to

request over time? What would the specific timeline
look like? The Small Business Administration suggests
thinking as far as five years down the road when
putting your funding request together. Also spell out
what type of funding you’re looking for, whether a
loan or investment, and the terms you’re asking for.
(As we suggested above, you can put together
different versions of the request for different types of
funding.)
3. What you will use the money for.

Do you need some extra funds for working capital to
buy more inventory? Are you paying off a high-
interest loan? Buying a building, new equipment, or
another company? Expanding your advertising
campaign, or hiring more staff? Whatever it is, explain
how much each aspect will cost.
4. Financial information.
This will be the heart of the financial information
section of your business plan , but you need to
include it here if you’re putting together a stand-
alone funding request.
You’ll need historical data on the company (if it’s an

established business), like income statements,
balance sheets, and cash flow statements for the last
three to five years. If the funding request is for a loan
that requires collateral, document what you have to
offer. If you’ve invested your own money in the
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company or there are other investors, state that

along with how much.
Offer realistic projections for the future, and explain

how this new funding would help you reach those
goals. Prepare yearly forecasts for income, balance
sheets, cash flow and capital expenditure budgets
for the next five years. Be even more specific for the
first year, with projections for each month or quarter.
You also need to cover how you plan to pay off the
debt, or what kind of return on investment you can
offer a potential investor. Potential funders will pay
particular attention to this, wanting to maximize their
gains and minimize their risk as much as possible. If
the plan is targeted to investors, what would their exit
plan be? Can they cash out in a specific number of
years? Do you plan to go public and offer stock?
Finally, address anything that might affect your ability

to repay, whether positively or negatively, such as
being acquired, buying out another business,
relocating, etc.
Getting money to fund your business may very well

be the point of creating your entire business plan, so
take the time to carefully prepare your funding
request, making sure to include all the information a
decision-maker will need.
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FINANCIAL PROJECTIONS
Creating financial projections for your startup is both

an art and a science. Although investors want to see
cold, hard numbers, it can be difficult to predict your
financial performance three years down the road,
especially if you are still raising seed money.
Regardless, short- and medium-term financial
projections are a required part of your business plan if
you want serious attention from investors.
The financial section of your business plan should
include a sales forecast, expenses budget, cash flow
statement, balance sheet, and a profit and loss
statement. Be sure to follow the generally accepted
accounting principles (GAAP) set forth by the
Financial Accounting Standards Board, a private-
sector organization responsible for setting financial
accounting and reporting standards in the U.S. If
financial reporting is new territory for you, have an
accountant review your projections.
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Sales Forecast
As a startup business, you do not have past results to

review, which can make forecasting sales difficult. It
can be done, though, if you have a good
understanding of the market you are entering and
industry trends as a whole. In fact, sales forecasts
based on a solid understanding of industry and market
trends will show potential investors that you've done
your homework and your forecast is more than just
guesswork.
In practical terms, your forecast should be broken
down by monthly sales with entries showing which units
are being sold, their price points, and how many you
expect to sell. When getting into the second year of
your business plan and beyond, it's acceptable to
reduce the forecast to quarterly sales. In fact, that's
the case for most items in your business plan.
Expenses Budget
What you're selling has to cost something, and this

budget is where you need to show your expenses.
These include the cost to your business of the units
being sold in addition to overhead. It's a good idea to
break down your expenses by fixed costs and variable
costs. For example, certain expenses will be the same
or close to the same every month, including rent,
insurance, and others. Some costs likely will vary month
by month such as advertising or seasonal sales help.
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Cash Flow Statement
As with your sales forecast, cash flow statements for a

startup require doing some homework since you do
not have historical data to use as a reference. This
statement, in short, breaks down how much cash is
coming into your business on a monthly basis vs. how
much is going out.
By using your sales forecasts and your expenses
budget, you can estimate your cash flow intelligently.
Keep in mind that revenue often will trail sales,

depending on the type of business you are operating.
For example, if you have contracts with clients, they
may not be paying for items they purchase until the
month following delivery. Some clients may carry
balances 60 or 90 days beyond delivery. You need to
account for this lag when calculating exactly when
you expect to see your revenue.
Profit and Loss Statement
Your P&L statement should take the information from

your sales projections, expenses budget, and cash
flow statement to project how much you expect in
profits or losses through the three years included in
your business plan. You should have a figure for each
individual year as well as a figure for the full three-year
period.
Balance Sheet
You provide a breakdown of all of your assets and

liabilities in the balances sheet. Many of these assets
and liabilities are items that go beyond monthly sales
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and expenses. For example, any property, equipment,

or unsold inventory you own is an asset with a value
that can be assigned to it. The same goes for
outstanding invoices owed to you that have not been
paid. Even though you don't have the cash in hand,
you can count those invoices as assets. The amount
you owe on a business loan or the amount you owe
others on invoices you've not paid would count as
liabilities.
The balance is the difference between the value of

everything you own vs. the value of everything you
owe.
Break-Even Projection
If you've done a good job projecting your sales and

expenses and inputting the numbers into a
spreadsheet, you should be able to identify a date
when your business breaks even—in other words, the
date when you become profitable, with more money
coming in than going out. As a startup business, this is
not expected to happen overnight, but potential
investors want to see that you have a date in mind
and that you can support that projection with the
numbers you've supplied in the financial section of
your business plan.
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APPENDIX
The appendix of a business plan is usually the last

section to appear in the business plan. Although not
required, a well-structured appendix can go a long
way toward convincing your reader you’ve got
a great business idea, or indeed that you have
thoroughly thought through your idea.
What goes in the appendix of a business plan?

In general, here are some of the documents you might
think to include in your business plan appendix:
• Charts, graphs, or tables that supplement
information from other sections of your business
plan
• Any agreements or contracts that you have with
clients or vendors
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• Licenses, permits, patents and trademark

documentation
• Product illustrations or product packaging
samples
• Marketing materials
• Resumes for each of your executive team
members
• Contracts and supporting documents for anything
else
• Building permit and equipment lease
documentation
• Contact information for attorneys, accountants,
advisors, and so on
• Credit history
• Detailed market studies
REFERENCES:
Raymund B. Harabadas, DBA, Tereso S. Tullao Jr, PhD,

Pathways to Entrepreneurship, Phoenix Publishing House 2018
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TANCHULING COLLEGE, INC.

Imperial Court Subdivision, Phase II,
Legazpi City 4500
Philippines Tel. # 480-61-06/480-25-13
http://www.tanchuling.edu.ph
NAME: _______________________________________
DIRECTION. Use the following outline as a guide as you
prepare your Business Plan for your own company.
Your business will be patterned to the Product you
presented in your MIDTERM Activity. For Writing and
Presentation instructions, see the guidelines below.
FORMATTING YOUR BUSINESS PLAN

Overall, business plans should use simple and
standard formatting. Use short Bond Paper ( 8.5 x 11),
Twelve point font size in a standard font like Arial as
well as the standard margin size of one inch on each
side. Pages should be numbered, and the name of
the company should appear on each page in the
header or footer.
Use charts whenever possible as it makes it much

easier for readers to consume the information in your
plan.
1. COVER PAGE
o Name of the company, names of the
management team, headquarters/office,

phone number; include "Confidential" on the
cover page.
2. TABLE OF CONTENTS
o List sections and page references.
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3. MISSION / VISSION STATEMENT

o Purpose of the business
o How your company will impact or meet the
needs of the various stakeholder groups:

customers, investors, the company, and
society.
4. MANAGEMENT STRUCTURE/BACKGROUND
o Organization Chart
o Management Background (for each member
of the management team)

▪ Experience
▪ Key skills and abilities
▪ Role in this business and why this person is
suited for this role

5. MARKETING PLAN
o Product/Service
▪ Supplier of the product (if applicable)

▪ Description of product and key
characteristics
▪ What makes it unique/competitive
o Target Market
▪ Who will use this product/why
▪ Specific demographics of target market
▪ Economic characteristics
o Competitive Environment
▪ Who are your competitors
▪ Strengths and weaknesses of competition
o Price
▪ Pricing strategy
▪ Pricing strategy vs. competition
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o Promotion
▪ How will you develop demand for your
product?
o Place
▪ Where will you produce your product and
how will you get it to the market?
6.FINANCIAL PLAN
o Projected income statement
▪ Sales: Number of units of product/service
estimated to be sold each week X price
• Example: 10 roses per week X 2 per
rose = 20 estimated sales per week
o Expenses per week
▪ Cost of Goods Sold (COGS): Per unit
costs X number of units of product/service
estimated to be sold each week
• Example: 10 puto per week X 10.00
cost to the company per puto = PHP
100.00 total COGS
▪ Other expenses per week (e.g. advertising,
taxes)
o Net income per week: Total Sales – Total
Expenses per week
o Projected income statement for the period
Aggregate Sales – Aggregate Expenses
▪
during the 6 weeks of running your business

a. Equipment list ( Pictures and its Functions)
b. Capital needed to get the business started
▪ Schedule (table) of how much capital is
needed and for what
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c. Financing sources: Outline your initial financing

plan.
o Teams must decide on the total
number of shares to be offered to

outside and management
investors combined.
o Management must actually spend
the money to purchase all shares

that they buy.
▪ ATTACH THE FOLLOWING SHAREHOLDER
INFORMATION TO THE BUSINESS PLAN:

• List of shareholders: Name of each
shareholder, contact information, and

number of shares bought (including
management shareholders)
• If you expect to raise additional
capital during the course of running

your business, estimate how much and
indicate what sources of capital you
will use. (e.g. loans, stock)
7.SUPPORTING DOCUMENTS
Completed up-to-date CAPITAL-INVENTORY-SALES-

EXPENSES spreadsheet (capital, inventory, and
loans/money borrowed areas filled in)
✓ Revised resumes of each of the management

team members
✓ logo (and documentation / official logo)
8. EXECUTIVE SUMMARY
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The executive summary goes near the beginning

of the plan but is written last. It should provide a
short, concise and optimistic overview of your
business that captures the reader's attention and
gives them an interest in learning more about it.
CALENDAR OF ACTIVITIES
CONTENT DATE OF REMARKS

SUBMISSION
o COVER PAGE
o MISSION/ VISSION
STATEMENT December 11,
o MANAGEMENT 2021
STRUCTURE
BACKGROUND
o MARKETING PLAN December 11,

2021
o FINANCAL PLAN DECEMBER 10,

2020
o SUPPORTING
DOCUMENTS
o EXECUTIVE DECEMBER 18,
SUMMARY 2021
o TABLE OF
CONTENTS
o BUSINESS PLAN DECEMBER 22,

SUBMISSION/ 2021
DEFENSE
46 | r y a n . m e n d i n a

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TCI S.Y.

TANCHULING COLLEGE, INC.

ORIENTATION VIDEO : https://tinyurl.com/ProfRYA N

Tanchuling College are committed to provide a sound

The Tanchuling College Inc will be a school that provides

The Tanchuling College of Hospitality Management aims to

The College of Hospitality Management will produce individuals

PERIOD ACTIVITY REMARKS

Checking of Preliminary Outputs

Uploading the Modules and

Chapter IV: THE BUSINESS PLAN

Week 5 PRE- FINAL/FINAL EXAMINATION

Prof. Ryan B. Mendina

About the Professor

- With 27 units in Master in Business Administration at Daniel B.

- Completed 18 units Methods of Teaching at Dr. Ruby Lanting

- Former College Professor at DRLCEFI

- Event Host, Organizer and Facilitator

- Head Coordinator of Beyond Imagination Events Planning and

- Human Resource Officer of Tanchuling College Inc.

About the Professor 6

Chapter 4: THE BUSINESS PLAN

THE COMPANY DESCRIPTION

THE BUSINESS PLAN

WHAT IS A BUSINESS PLAN?

Business plans are important documents used to

Although they're especially useful for new businesses,

Ideally, the plan is reviewed and updated periodically

ELEMENTS OF A BUSINESS PLAN

The executive summary goes near the beginning of

An executive summary of a business plan is an

What Information Goes in an Executive Summary?

The information you need to include varies somewhat

of debt or equity financing. In order to do so you will

✓ The business opportunity - describe the need or

For established businesses the executive summary

THE COMPANY DESCRIPTION

WHAT IS A BUSINESS DESCRIPTION?

A company description provides an overview of key

Lenders and investors should see how your business

Your business’s mission statement is the part of your

Regularly update your company description as your

The company description of a business plan should

Market Analysis for Your Business Plan

Just keep the purpose of your plan in mind, and

For example, if you sell to consumers, do you have

average income ranges, education, typical

THE OGRANIZATION AND MANAGEMENT

This section of your business plan, Organization and

As always, remember your audience. If this is a plan

No matter what its purpose, you’ll want to break this

you’ve set up the company to run (its organizational

It’s important to define the positions in the company,

If you’re applying for funding to start a business or

Obviously, for small businesses, the organization will

production and distribution of your product or the

For larger companies, an organizational plan with

A large company is also likely to need additional

One way to explain your organizational structure in

If the business will use outside consultants, freelancers,

Now that we understand the structure of your

List the names of the owners of the business, what

record of these key employees. Lenders and investors

Include each person’s name and position, along with