Unit 2: The Business Plan 1.
It’s realistic- with a practical business plan, you’ll be
Entrepreneurship
Lesson 1: Definition, Purpose, and Market Need Identification
The Business Plan
- A business plan is a written description of the business
that you will establish in the future.
- A business plan can be written before or during the first
few years of the enterprise.
- This is to guide the entrepreneur on which strategies
would be most beneficial for the enterprise to take.
Why prepare a business plan?
- The business plan is the blueprint of your proposed
business.
1. To test the feasibility of your business idea- It’s a timer-
saber and money-saber if you already understand that
your business is going to be indefensible.
2. To give your new business the best chance of success-
Writing a business plan can make sure that you pay
attention to the broad operational and monetary objectives
of your new business.
3. To test the feasibility of your business idea- Its a timer-
saber and money-saber if you already understand that
your business is going to be indefensible.
4. To give your new business the best chance of success-
Writing a business plan can make sure that you pay
attention to the broad operational and monetary objectives
of your new business.
Three Factors of a Good
Business Plan
able to spot potential weaknesses.
2. It’s specific- Every business plan ought to embody tasks,
deadlines, forecasts, budgets, and an idea to measure goal
performance.
3. It’s followed through- The best-arranged plans amount
to nothing if they’re not followed.
A realistic business plan accounts for the feasibility of
implementation. If the business plan is not practical or too
good to be true, then, no operational method can be devised to
achieve the strategy.
Identifying Customer Needs
- Identifying customer needs is the method of determining
what a client needs from a product.
1. To keep the products-focused only to the needs of
the costumer
2. to identify not just the specific needs of the client,
but also the latent needs.
1. Gather raw data- the primary step is to collect
information from the customers.
There are 3 ways to gather data
1. Interview
2. Focus groups
3. Observation
2. Interpreting data- after the interview, it’s necessary to
translate obscure statements of the customer.
3. Organizing the data- Cluster similar needs together, order
them.
4. Reflect the process- The final step in the customer needs
identification method is to reflect on what has been done.
 Lesson 2: The Business Plan Contents (I): Introduction,
Executive Summary, and Proponents
The Executive Summary
Business Plan Introduction - The executive summary summarizes the necessary details
of the business plan for its readers.
- The business plan introduction serves as the “birds-eye
- It is timesaving for readers, for they are able to get the gist
view” of your plan.
of the business plan.
- It is written at a high level while not going into details.

The Business Concept Contents of the Executive

- A business concept should have the essence of the
business in a short but powerful manner.
Summary
- A business model is a formula on how the business plans For startup business
to make money out of business.
- The business opportunity
- Taking advantage of the opportunity
Four Areas of Business -
-
The target market
Business model
Modelling -
-
Marketing and sales strategy
The competition
1. Raising revenue - Financial analysis
- Owners/Staff
2. The cost of the enterprise products and other costs of
doing business - Implementation plan
3. Major investments of the enterprise In writing your executive summary, you already need to
4. Financing the investment capture the audience's attention immediately so that they are
motivated to read the remainder of the document.

You need to end your business plan’s executive summary with

The Business Goals a strong and clinching closing sentence that will justify why
- The business goals show the long-term and future your proposed business is a winning one.
prospects of the enterprise.
- It is composed of the vision, mission, objectives, key
results area, and performance indicators.
- Goals tell you wherever you want to go; objectives tell On Writing an Executive
you precisely the way to get there.
- Goals will increase your effectiveness; objectives back Summary
your goals, and cause you to be more economical.
- Goals are usually represented in words; objectives usually 1. Focus on providing a summary.
go together with numbers and specific dates. 2. Keep your language sturdy and positive.
3. Keep it short.
1. Specific Goal Setting 4. Polish your executive summary.
2. Self-Efficacy 5. Put yourself in your readers’ place.
3. Need for Achievement
4. Ambition
5. Willingness to Learn
6. Adaptability and Flexibility
7. Willingness to Take Risk
8. Interpersonal Skills

Always think of a goal that is measurable. By establishing

measurable goals, you'll be able to track your progress and
acknowledge right away once your efforts are going off target.
 Types of Stakeholders

Each of the proponents has something to contribute, and they

can be divided based on their capabilities, skills, and interests.