BUSINESS PLAN vs.

FEASIBILITY STUDY

WEEK 4
Business Plan versus Feasibility Study

► The primary objective of the feasibility study is to determine whether

the proposed business is feasible or not in all areas.
► If the outcome of the feasibility study is positive, then the
entrepreneur prepares the business plan.
► The content and structure of the business plan are almost the same
as those of the feasibility study.
► The data shown in the feasibility study are the same set of data
presented or used in the business plan.
► Nonetheless, the business plan presents a more detailed discussion
of how the business will be undertaken and operated.
MAJOR PARTS OF THE BUSINESS
PLAN
►There is no universally accepted standard format or structure 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
► 10.Appendix
Introduction
► The introduction presents the general perspective of the business. It may consist of
one to two pages. It includes, among others, the following sections:
► 1. Proposed Name of the Business
► 2. Address 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

► In case the consulting team prepares the business plan for prospective owners or
investors, the section Statement of Confidentiality is added as the last section.
Proposed Name of the Business
► The formulation and drafting of the proposed business name is 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 the 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 costumers

► At least three suggested trade names must be submitted to the department of Trade
and Industry for approval and registration.
 Address of the Business
► It is important that the address of the Business is correctly written because all
business correspondence is mailed to the business address. Raw materials and
other manufacturing supplies are also shipped by the seller to the designated
business address.

► Nowadays, it is also necessary for the business to have an e-mail address to

facilitate electronic communication between the business and the customers,
suppliers, creditors, and other significant parties.
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 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.
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 advantage.

► What is the difference between the sections Address of the Business and
Location of the Business?

► The former simply states the exact business address. No additional

description is provided to highlight the exact business address. The latter
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 be described.
The following factors should be
considered when deciding on the
location of the proposed
► 1. Proximity to the target customers
business:
► 2. Distance from the sources of raw materials, labor, and utilities
► 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 b 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 the
creditors must also be mentioned.
ACTIVITY TIME

1. Prepare the introduction section of your

business plan. The cover page of your final
output will appear below.
Note that since the name, address, and
name/names of the owner/owners of the
business appear on the cover page, they may
no longer be repeated in the Introduction
section.

2. Use the guide for the format of the

Introduction section of your business plan.
SCORING RUBRICS