BUSINESS PLAN

PREPARATION
A comprehensive paper that
details the situation analysis,
objectives, strategies and tactics
and how to monitor and control
the enterprise. Morato, E., 2016
- is written document describing
the nature of the business, the
sales and marketing strategy,
and the financial background,
and containing a projected
profit and loss statement
A Business Plan summarizes the plan of
action after a course of action has been
determined through the Feasibility Study

 A Business Plan provides a Planning function

A Business Plan outlines the actions needed

to take the proposal from “idea” to “reality”
A Business Plan tells How your business will be
created and Why it will be successful

A Business Plan provides a road map for

strategic planning
 FUNCTIONS OF A BUSINESS PLAN
• 1. Minimize or remove risk of losing money - Investment on
poorly researched business that may result to financial
instability should be avoided. You must see all sides of the
venture before letting go of any resources.
• 2. Avoid costly mistakes - Unplanned decisions may result to
negative outcomes that may hurt the business.
• 3. Anticipate the financial requirements - Futuristic view of
the increase or decrease of demand on the given
product/service will prepare you in meeting business
obligations.
 FUNCTIONS OF A BUSINESS PLAN
• 4. Organize the activities beforehand - Thinking in advance, you must look
at the near and distant future. Contingency plans must be present for
anticipated concerns that may arise.

• 5. Assess actual performance against set goals - Having a clear goal will
help you achieve your target in terms of sales, revenues or even expenses.

• 6. Apply for financing from lending institutions -There are cases that
financial assistance from other people or organization is needed to start a
business. A good business plan may encourage investors to entrust you
their resources but remember to be wise whenever you are lending money
and make sure to use the money for its intended purpose for the growth of
the business.
 PARTS OF BUSINESS PLAN
I. Introduction
II. Executive Summary
III. Market Aspect
IV.Technical Aspect
V. Organization and Management Aspect
VI.Financial Aspect
VII.Investment Decision Analysis