ARC 514 - 18

BUSINESS MANAGEMENT AND

APPLICATION FOR ARCHITECTURE 1

First Semester 2022-2023

AR. MARK G. DELFIN

RESEARCH 2:
ELEMENTS OF A BUSINESS PLAN

TIERRA, MONIQUE C.
18 – 11329 – 958 | 5-AR1

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TABLE OF CONTENTS

RESEARCH 2: ........................................................................................................................................... 1

A. GOALS AND OBJECTIVES .............................................................................................................. 3

B. PROVISIONS FOR DELIVERIES ..................................................................................................... 4

C. MARKETING STRATEGIES ............................................................................................................ 4

D. MANAGEMENT SYSTEMS .............................................................................................................. 7

E. FINANCING SCHEME ....................................................................................................................... 8

REFERENCES .......................................................................................................................................... 9

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 RESEARCH 2: ELEMENTS OF A BUSINESS PLAN

A. GOALS AND OBJECTIVES

Objectives give the business a clearly defined target. Plans can then be made to achieve
these targets. This can motivate the employees. The "how" of your business is explained by your
goals and objectives. They distinguish your business from any other one even if they both have the
same purpose. Also, business objectives set a map to your developmental processes as it also
enables the business to measure the progress towards to its stated aims. Aside from that, any
concepts you want to implement in your company come from your aims. In other words, if a
concept conflicts with your objectives, you won't consider it. This is a useful method for
eliminating irrelevant ideas because it gives your business an outline to develop ideas within.
Having well-defined goals and objectives for your business means forming a road map for your
company’s future. Without them, you are very likely to make wrong decisions and waste precious
resources.

The most effective business objectives meet the following criteria:

SMART Objectives
o Specific - this refers to being thoroughly
detailed. They are customized according to
the nature of the business.
o Measurable - Business objectives are
quantifiable. They must include definite
numbers and well-defined action plans. This
makes it easier to execute these measures.
o Agreed - All the responsible parties should be
in agreement about the objectives.
o Realistic - Objectives are challenging, yet
attainable. Unrealistic objectives make your
business lose credibility and will make it hard
for your employees to keep up with your
objectives.
o Time Bound - That refers to setting a specific
time frame to accomplish your objectives.
The main objectives that a business might have are:
o Survival - This is a short term objective that is usually set during times of crisis or when a
small business is just starting. The objective of “survival” resembles an emergency alarm
that requires serious and quick measures with short deadlines.
o Sales Growth - As a matter of fact, in the world of business, money is the end goal of
almost all businesses. It does not come as a surprise that increasing the number of sales to
the maximum is the objective of all companies, from start-ups to global businesses.
o Service Providing - This objective is more relevant to public sector organizations. Public
services, like transportation, for example, do not have profit as their main focus. Their main
objective is to provide value and facilitate the lives of the citizens. Despite the fact that
these organizations gain some money, they must put the quality of the service itself before
profit.

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B. PROVISIONS FOR DELIVERIES

This section of element is known as the Operation Plan, which strategies, designs and
developmental plans. Also, this section provides a summary of the company’s physical
requirements, such as office space, machinery, labor, supplies, and inventory. For a business
that requires custom warehouses and specialized equipment, the operating plan will be more
detailed compared to a home-based consulting business. If the business plan is for a manufacturing
company, it will include information on raw material requirements and the supply chain.

This section include answers to the following:

o What functions will be required to run the business?
o What milestones must be reached before the venture can be launched?
o How will quality be controlled?

C. MARKETING STRATEGIES

A Business Marketing plan is very important for any product or company, in order to
achieve individual and organizational goals. It clearly states how the firm plans to achieve its
goals as planned. It also contains detailed guidelines regarding how the product will perform in
each life cycle and the budget allocated for the same. And of course, it should be achievable and
must be able to respond positively to changing market conditions.

Within your Marketing Strategy, you should outline:

o A definition of your target market –Knowing the target market is crucial part of
marketing, in order for the overall marketing strategy be effective and successful, the
business must know its target market first. When identifying your target market look at the
following data:
 Age: What is the average age range for your customers?
 Gender: Are your customers male/female or both?
 Language: What language do your customers speak?
 Interests: Are there any commonalities between your customers in terms of
their interests?
 Stage of life: In what stage of life are your customers? For example, they
could be college students or parents.

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 o An assessment of your market – This should summarise how attractive your target market
is to your company and why, Porter’s Five Forces or Six Forces Model are useful tools to
define this;
 Porter's Five Forces - a model that identifies and analyzes five competitive
forces that shape every industry and helps determine an industry's
weaknesses and strengths.

 Six Forces Model - a strategic business tool that helps businesses evaluate
the competitiveness and attractiveness of a market. It provides a view or
outlook by analyzing six key areas of business activity and competitive
forces that shape any industry. The purpose of the model is to identify the
structure of the industry including strengths and weaknesses to help
formulate a corporate strategy.

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 o Threats & Opportunities – An entrepreneur should know everything including any flaws
that may become apparent. The project strength, shortcomings, appropriate options for
progressing and warnings can be tested in the project itself for the successful completion
of the main project. For this, you need to do a thorough SWOT Analysis (Strengths,
Weaknesses, Opportunities, and Threats). This will give you the inner view of the business
model. However, it is very important to determine how a business will run in the changing
economic situation. The PEST analysis needs to be done to know how your model will
run in the changing Political, Economic, Social and Technological Environment.

o Product/Service Features – Start out by describing the product or service you offer and
what makes it unique compared to the competition. Include the following information:
 Product or service summary. Briefly outline what your business offers, how it
works and where customers can buy it.
 Unique selling proposition. Describe what sets your business apart from other
similar products or services in a sentence.
 Customer benefits. Tell the reader why your customer might want to buy your
product or pay for your service as opposed to your competitors’.
 Potential drawbacks and solutions. Mention any roadblocks you might face and
how your business might overcome them.

o Marketing Plan & Budget – This section includes the outline marketing and advertising
strategies you will use to promote your business. Marketing is essential to build brand
awareness and increase your business’ revenue. Having a business without investing on
marketing may be possible but not recommended as it can takes a very long time or the
business can be stagnant, or lose the market.
Marketing Budget is the total money allocated to growth and promotion related
strategies over a defined period, some of the strategies can include the following:
 Website design and development
 Social media campaigns & Content creation for content marketing campaigns
 Print, TV, radio, direct mail and other traditional campaign channels
 Employees and contractors working on marketing-related efforts
*Note: The size and complexity of your marketing budget will vary by the size
and complexity of your business.

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 o Pricing – Pricing is the most crucial phase of any business plan. Price can be the maker or
breaker of a product. It is the one element of the marketing mix that produces revenue.
People ought to create their brands or products in a way that makes them profitable and
able to charge a high price. Additionally, it must demonstrate a value that people are
prepared to pay for and a benefit that justifies the expense.
 Pricing breakdown. List the prices your business charges for all products and
services it offers.
 Cost of production. Analyze all of the expenses related to producing and
distributing your goods or services.
 Competitor prices. What do your rivals charge for comparable products? How does
it stack up against yours?
 Justification of pricing. If you chose to charge less than the competitors, please
explain why and how you are able to do so.
 Return on investment. In light of the costs and prices, how much profit do you
anticipate making?
 Promotions. Include details about rebates and discounts, such as holiday specials
or seasonal discounts.

D. MANAGEMENT SYSTEMS
This section includes the Management Plan that describes the forms of business. It
identifies key persons on the management team with their position, responsibilities, and
authority. People are one of the most important parts of any new business. A good team can make
a huge success, while people that are not appropriate to what your business need can distract you
and be a disadvantage to your success.

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 including education,
experience, special skills, etc., along with any
contributions they may already have had to
the success of the business.
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 the organization and management
section or your business plan.
The management section of your business plan is an excellent space to highlight the
members of your management team. Tell your readers and potential investors who will be
managing your company, where they come from, how they will help your project or business,
and anything else that will signal your business’ future success. Be sure to include what’s best
about your management team. Your investors need to know that this team is capable of anything.

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A few things to remember as you work on this section of your business plan:
o Your readers are usually potential investors. They need to know you and your
management team are trustworthy and deserving of their investment.
o Investors need to know that you and your team can do the job; they need to get a feel for
your attitudes and your abilities.
o Showing your team has a wide variety of skills and experiences will give you an
advantage when presenting your business plan.
o It's all about the people. Business plans are great for answering key questions about the
new venture, but at the end of the day, investors are looking to partner with hard-working,
trustworthy people.

E. FINANCING SCHEME
The financial plan involves the development of the company’s revenue and profitability
model. These financial statements detail how you generate income and get paid from customers.
The financial plan includes detailed explanations of the key assumptions used in building
the business plan model, sensitivity analysis on key revenue and cost variables, and description of
comparable valuations for existing companies with similar business models.

This section of your business plan aims to determine the amount of capital the firm needs.
The financial plan does this along with assessing the proposed use of these funds (e.g., equipment,
working capital, labor expenses, insurance costs, etc.) and the expected future earnings. It includes
Projected Income Statements, Balance Sheets (showing assets, liabilities and equity) and Cash
Flow Statements, broken out quarterly for the first two years, and annually for years 1-5.
Importantly, all of the assumptions and projections in the financial plan must flow from
and be supported by the descriptions and explanations offered in the other sections of the plan. The
financial plan is where the entrepreneur communicates how he/she plans to “monetize” the overall
vision for the new venture. Note that in addition to traditional debt and equity sources of startup
and growth funding that require a business plan (bank loans, angel investors, venture capitalists,
friends and family), you will probably also use other capital sources, such as credit cards and
business credit, in growing your company.
This section includes projections, budgets and goals that are unique to each business. In
particular, you should focus on explaining the assumptions on which you based your forecasts,
more than on the forecasts themselves. Every good Financial Plan will include:
o 12-month Profit & Loss Projection – A month-by-month forecast of sales, operating costs,
tax and profits for the following year. Sometimes three years.
o Cash Flow Statement & Forecast – This financial statement tracks the amount of cash that
leaves or enters the business at any given time.
o Breakeven Analysis – This is a cornerstone of your business plan. Here you should show
what level of projected sales allows the business to cover its costs.
o Capital Requirements – This point is fundamental as it shows investors what their money
will be spent on. It should contain a summary of all the expenses for big purchases and
day-to-day running costs.

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REFERENCES
https://www.constantcontact.com/blog/small-business-plan-help/

https://www.upcounsel.com/management-plan-in-business-plan

https://companyplan.com/product-description-business-plan/

https://www.zenbusinessplans.com/business-plan-goals-objectives/

https://profiletree.com/business-objectives/

https://bizally.com.au/insights/basic-elements-business-plan

https://finerva.com/white-paper/5-key-elements-business-plan/

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