LESSON 3

INTRODUCTION

CONTENTS OF THE BUSINESS PLAN

PREPARED BY:
MARIA GINA G. SERRANO
 WHAT IS BUSINESS PLAN
FOR?
• IS A FORMAL STATEMENT OF BUSINESS GOALS,
REASONS THEY ARE ATTAINABLE, & PLANS FOR
REACHING THEM, BACKGROUND INFO ABOUT
ORGANIZATION.

• PLAN TO ENTER ANY BUSINESS ENDEAVOR MUST HAVE

A BUSINESS PLAN TO GUIDE THEM THROUGHOUT THE
PROCESS.

• DIFFERENT BUSINESS PLANS ARE PREPARED FOR

DIFFERENT PURPOSES.
 A. BUSINESS CONCEPT

• IT CONTAINS THE ESSENCE OF THE

ENTERPRISE IN A CONCISE BUT POWERFUL
MANNER.

• IT STRESSES THE VALUE OF THE PRODUCT

OFFERING TO THE TARGET CUSTOMERS
WHO WOULD MOST LIKELY BUY IT.
 BUSINESS MODEL
• A FORMULA ON HOW THE ENTERPRISE
EXACTLY PLANS TO MAKE MONEY OUT
OF THE BUSINESS.

• THE PRODUCT CONCEPT MUST THEN

BE TRANSLATED INTO A BUSINESS
MODEL
 FOUR AREAS OF MONEY
MAKING OUT OF THE
BUSINESS.
WILL THE BUSINESS RAISE REVENUES?
AT CRITICAL FACTORS WILL MAKE THE REVENUES TO
ALIZE?

T WILL BE THE COSTS OF THE ENTERPRISE PRODUCTS

THER COSTS OF DOING BUSINESS? - HOW WILL
E COSTS BE MANAGED TO ENSURE COMFORTABLE
TS?

WHAT CRITICAL FACTORS WILL DRIVE THE COSTS?

HOW CAN THESE FACTORS BE CONTROLLED?
 Continuation: Four Areas….

• WHAT WILL BE THE MAJOR INVESTMENTS OF THE

ENTERPRISE?
- WHY WILL THESE INVESTMENTS GIVE THE
ENTERPRISE A COMPETITIVE EDGE?

• HOW WILL THE ENTERPRISE FINANCE THE

INVESTMENTS?
- HOW WILL THE ENTERPRISE FUND ITS GROWTH?
 B. BUSINESS GOALS:
• SHOW THE FUTURE & LONG TERM PROSPECTS OF THE
ENTERPRISE.

• 5 PARTS OF BUSINESS GOALS:

1. VISION - A CONSUMER ROAD MAP INDICATING WHAT THE
CONSUMER WANTS TO BECOME A GUIDING
TRANSFORMATIONAL INITIATIVES BY SETTING A DEFINED
DIRECTION FOR THE CONSUMERS GROWTH MORE SPECIFIC.

2. MISSION – DEFINES THE PURPOSE OR BOARDER GOAL

FOR BEING IN EXISTENCE AND CAN REMAIN THE SAME FOR
DECADES IF CRAFTED WELL.
 Continuation: Business
Goal
3. OBJECTIVES – MUST BE MORE SPECIFIC THAN THE
VISION AND MISSION STATEMENTS. THEY SHOULD BE
MEASURABLE, ACHIEVABLE & TIME-BOUNDED.
4. KEY RESULTS AREAS – GENERAL AREAS OF
OUTPUTS FOR WHICH THE DEPARTMENTS ROLE IS
RESPONSIBLE, EXPECTED OUTCOME.
5. KPI – A MEASURABLE VALUE THAT DEMONSTRATES
HOW EFFECTIVELY A CONSUMER IS ACHIEVING KEY
BUSINESS OBJECTIVES.
EX. SALES VOLUME BY LOCATION.
EMPLOYEE SATISFACTION.
 C. EXECUTIVE SUMMARY

• CONTAINS EVERYTHING RELEVANT & IMPORTANT TO

THE BUSINESS AUDIENCE.
• CONTAINS THE MAJOR ARGUMENTATIONS OF THE
BUSINESS PROPENENTS ON WHY THE BUSINESS WORK
& SUCCEED.
• PROCEEDS TO DISCUSS & JUSTIFY THE ENTERPRISE
STRATEGY & ENTERPRISE DELIVERY SYSTEM.
• IT SHOULD THEN RENDER ALL THE MAJOR
INSTITUTIONAL, MARKET OPERATIONS &
ORGANIZATIONAL STRATEGIES INTO FINANCIAL
STRATEGIES & FORECASTS.
 Continuation: Executive
Summary

• INVESTMENT REQUIREMENTS SHOULD BE PRESENTED

ALONG WITH THE SUMMARIES OF THE PROJECTED
INCOME STATEMENTS, BALANCE SHEETS, CASH FLOWS
FUNDS AND THEIR ANALYSES & CONCLUSIONS.

• YIELDS & RETURNS, ALONG WITH RISKS &

CONTINGENCY MEASURES CHOULD BE INCLUDED IN
THIS SECTION.
 Continuation : Executive
Summary
• EXECUTIVE SUMMARY SHOULD ALSO CONTAINS A
PORTION WHERE ENVIRONMENTAL & REGULATORY
COMPLIANCE OF THE PROPOSED BUSINESS AS WELL
AS THE MORE PROVATIVE PROGRAMS TO BECOME A
MORE RESPONSIBLE CORPORATE CITIZEN.
• SHOULD PRESENT THE CAPITAL STRUCTURE OF THE
PROPOSED BUSINESS & SHOW HOW THIS STRUCTURE
WILL RESPOND TO THE INVESTMENT PROGRAMS &
FINANCIAL FORECASTS OF THE ENTERPRISE.
• ENTERPRISE DELIVERY SYSTEM – IS THE ENTIRE
PROCESS CONVERTING INPUTS & OUTPUTS & THESE
OUTPUTS TO OUTCOMES.
 Continuation: Contents of
Executive Summary

• INTRODUCTION OF BUSINESS
• THE COMPANY
• PRODUCT & SERVICES
• THE MARKET
• FINANCIAL CONSIDERATION
 D. BUSINESS
PROPONENTS
• BUSINESS PLAN CONTAINS INFORMATION ABOUT THE BUSINESS
PLAN PROPONENTS OR STAKEHOLDERS.

• TYPES OF STAKEHOLDERS:

• RESOURCE MOBILIZERS & FINANCIAL BACKERS – IF THE

RESOURCE PROVIDERS ARE THE READER, THEN THEY WILL WANT
TO KNOW WHO ELSE ARE ON BOARD TO SHARE THE BURDEN OF
RAISING MONEY TO SEE THE WHOLE THING THROUGH.

• TECHNOLOGY PROVIDERS & APPLICATORS – IF THE BUSINESS

PLAN READER ARE THE TECHNOLOGY PROVIDER, THEN THEY WILL
WANT TO KNOW IF THERE WILL BE SUFFICIENT FUNDS TO PAY FOR
THE TECHNOLOGY.
 Continuation: Business
Proponents

• GOVERNANCE & TOP MANAGEMENT – IF THE

BUSINESS PLAN READERS ARE THE GOVERNANCE &
TOP MANAGEMENT TEAM, THEN THEY WILL WANT TO
KNOW WHAT STRATEGIES & PERFORMANCE
INDICATORS ARE BEING PROPOSED.

• OPERATING & SUPPORT TEAM – IF THE BUSINESS

PLAN READERS ARE THE IMPLEMENTING, OPERATING
& SUPPORT TEAMS, THEY WILL WANT TO KNOW WHAT
PROGRAMS, ACTIVITIES, TASKS & RESOURCES WOULD
BE IN PLACE.
 E. CAPITAL SOURCING

• PERSONAL SAVINGS - THIS IS A VERY TOUGH DECISION TO

MAKE BECAUSE WORSE COMES TO WORST, IT IS THE
ENTREPRENEUR’S OWN MONEY THAT IS AT STAKE & IT MAY
TAKE A LOT OF TIME TO GAIN IT BACK IF THE BUSINESS DID
NOT WORK OUT.

• BORROW FROM FAMILY & FRIENDS – IS THE EASIEST WAY

SO FAR, TO SOURCE FUNDS, ESPECIALLY FOR AN
ENTREPRENEUR WHO SEE FAMILY IS FINALLY SECURE, NOT
ONLY THAT HE CAN PAY WHEN HE IS ABLE TO, USUALLY
THERE IS NO INTEREST.
 Continuation: Capital
Sourcing
• APPLY FOR A BUSINESS LOAN FROM A BANK – THIS IS ALSO
ONE OF THE MOST DIFFICULT SOURCES OF FUNDS TO GET.
MOST POPULAR & COMMON SOURCE OF BUSINESS CAPITAL
IN THE PHILIPPINES IS BANK LOANING.

• 5’C OF CREDIT:
• CHARACTER
• CAPACITY
• CAPITAL
• COLLATERAL
• CONDITIONS
 OTHER SOURCES OF
CAPITAL

• HOME EQUITY LOAN

• CREDIT CARD
• VENTURE CAPITAL/ANGEL INVESTORS
• SMALL BUSINESS LOANS FROM GOVERNMENT
AGENCIES..
 F. TARGET MARKET

• THE ENTREPRENEUR SHOULD EXERT

EFFORTS TO KNOW THE MARKET HE
WANTS TO EXPLOITS BECAUSE KNOWING
THE MARKET WILL INCREASE CHANCES OF
UNDERSTANDING CUSTOMER WANTS &
NEEDS. THIS IS POSSIBLE THROUGH GOOD
MARKETING RESEARCH.
THANK YOU VERY MUCH!!!!!!!!!