BUSINESS

PLAN
 BUSINESS PLAN
Is a road map of the new
business.
It is a roadmap of the
entrepreneur.
The only single document that
must be prepared before
opening a new business.
It provides a clear direction to
any uncertain business
endeavor.
 Is a detailed and integrated
written document that
describes the various activities
involved in opening and
operating a new
entrepreneurial venture.
 MAJOR SECTIONS OF A
BUSINESS PLAN
- Introduction - Production Plan
- Executive Summary - Operation Plan
- Environmental Analysis - Marketing Plan
- Business Desciption - Financial Plan
- Organizational Plan - Appendix
 INTRODUCTION
- Presents the general
perspective of the
business.
- It may consist of one to
two pages.
 INTRODUCTION
It includes, among others, the following sections:
- Proposed name of the business
- Address of the business
- Name of the owner / owners
- Description of the business
- Location of the business
- Funding requirement and source
 PROPOSE NAME OF THE
BUSINESS
- The formulation and drafting of
the proposes business name is not
as simple as it sounds.
- It delicate and important
entrepreneurial task.
 PROPOSE NAME OF THE
BUSINESS
The proposes business name must:
ncludes, among others, the following sections:
- reflect the business identify and image,
- promote the philosophical values and culture that the
business values the most
- profess the brand identify of the product
- attracy or influence the target consumers
 ADDRESS OF THE
BUSINESS
- It is very important that the address of the
business is correctly written because all the
business correspondence are mailed to the
business address.
- Raw materials and other manufacturing supplies
are also shipped by the seller to the designated
business address.
 NAME OF THE OWNER
- The name of the owner must be properly
stated.
- SOLE PROPRIETORSHIP * only one owner.
- PARTNERSHIP * the names of the partners
including the extent of their liabilities must be
indicated.
- CORPORATION * the names, nationalities and
addresses of the incorporators must be given.
 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 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 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.
FUNDING REQUIREMENT &
SOURCE
- The estimated total initial cost of the
business venture must be clearly indicated.
- what should include the projected breakdown
or allocation of the total cost, how much will
be for buidling, fixtures, equipment, supplies
and working capital.
 EXECUTIVE SUMMARY
- It point outs out the overall highlights of the
business plan as well as the bird's eys view of its
section.
- It must be written in simple language that can be
easily understood and at the same time attract the
attention and influence the decision of the reader.
 EXECUTIVE SUMMARY
It includes, among others, the following
sections:
- Vision, mission, goal & objectives of the
business
- Business Model
- Business and product position
- Wealth improvement approaches
- Parties supporting the business
VISION, MISSION, GOALS &
OBJECTIVES
- The VMGO must be clearly stated and
easily understood. They must reviewed
and revisited at least every 3 years to
determine whether they are still
reasonable and achievable in view of the
rapid changes in the business community.
 BUSINESS MODEL
- Defines the perspective of the business in
terms of structure, operation, financial
activities that will lead to the achievement of
the VMGO. There is no standard model that will
exactly fit all types of business because they
have different strengths and weaknesses,
infrastructure, networks and value
propositions.
BUSINESS AND PRODUCT
POSITION
- Help determine how the business
defines its course and the process of
accumulating wealth.
- It tells the size of the market and the
target market share of the business and
product.
 WEALTH IMPROVEMENT
APPROACHES
- Describe the methodologies or
approaches that will be taken by the
business.
PARTIES SUPPORTING THE
BUSINESS
- Description of the parties that strongly
support the business: Consumers,
Creditors, Suppliers, Employees & Staff.
 ENVIRONMENTAL ANALYSIS
- It is a strategic tool that helps determine the
external and internal factors (Political, Economic,
Social, or Technological in nature) affecting the
performance of the business.
- May consist at least 20 pages including the
graphical representations, tables and
computations.
- It is considered as the heart of the business plan.
 MAJOR AREAS
- GLOBAL ANALYSIS
- SOCIETAL ANALYSIS
- INDUSTRY ANALYSIS
 GLOBAL ANALYSIS
- Begin with global business
situation to provide enough
knowledge about the global
perspective or horizon of the
business.
 SOCIETAL ANALYSIS
- Determine the variables (P-olitical
E-conomic S-ocioeconomic
T-echnological E-cological L-egal
Forces) affecting the societal
environment.
 INDUSTRY ANALYSIS
- It involves Conducting a critical
evaluation of the forces in the industry
that affect the proposed business,
Evaluating the probable position of the
business in the industry & Determining
the most appropriate strategy that may
be adopted by the proposed business.
 BUSINESS DESCRIPTION
- Presents the nature and form of the business to
be undertaken, and may cover by two or three
pages. As to nature, the business may be a
merchandising, service, manufacturing, or a
hybrid.
- The description must include the innovative
features of the business.
 BUSINESS DESCRIPTION
- Product or service that it plans to produce or
serve.
- Various plant and office equipment
- Size of the proposed business
- Future parties with whom contacts may be
necessary
- Personnel requirement
- Administrative operation
HAVE A NICE DAY!
Thank You .....