LESSON 8 - 1/10/23
PARTNERSHIP
→EXTERNAL ENVIRONMENT
- Is conducted to determine the availability of raw
materials, the suitability of the business to the
location, the cost involved, the growth of the industry,
and the possible position of the business in the
market.
→INTERNAL ENVIRONMENT SCANNING
- Is conducted to determine the possible target market
and the business competency in taking available
opportunities.
→2 SIGNIFICANT FACTORS THAT MUST BE
CONSIDERED BEFORE OPENING A BUSINESS:
1. Competency of the entrepreneur
2. Competency of the business after conducting the
environmental scanning
FORM AND NATURE OF ENTREPRENEURIAL
VENTURE
Forms of Entrepreneurial Venture
1. SOLE PROPRIETORSHIP
2. PARTNERSHIP
3. CORPORATION
1. SOLE PROPRIETORSHIP
- A business venture owned by one person only.
- Most of the small business operating in the
Philippines are sole proprietorship.
CHARACTERISTICS OF SOLE PROPRIETORSHIP
1. It is easy to form and manage.
2. It is a simple business operation.
3. It has a limited pool of resources.
4. Its growth is limited.
5. The owner has unlimited liability.
2. PARTNERSHIP
- A business venture that is owned by two or more
persons.
- Owners are usually called partners.
- Profits or loss is divided between or among the
partners.
- All the partners may contribute money, property, or
industry, and their contributions become a common
fund of the entrepreneurship.
- Partners are held personally liable for the
partnership's liabilities.
- Life of the partnership is easily dissolve.
2.
REASON FOR DISSOLVING
1. Death of one of the partners
2. Admission of a new partner in an existing
partnership
3. Personal insolvency of one of the partners 4.
Permanent withdrawal of the investment of a partner
3. CORPORATION
- An entrepreneurial venture formed by at least five
but not more than fifteen persons.
- Persons originally forming the corporation are called
incorporators.
- It can either be stock or non-stock, profit or non-
profit, and domestic or foreign.
- Management is entrusted to the board of directors
who are elected by and from its group of
stockholders.
- An Artificial being
STOCK CORPORATION
Corporation is authorized to issue shares of stocks to
shareholders. NON-STOCK CORPORATION
Corporation is not authorized to issue shares of stock
to the members.
STOCKHOLDERS OR SHAREHOLDERS Owners of
a stock corporation
MEMBERS
Owners of a non-stock corporation
CERTIFICATE OF STOCK
An evidence of ownership of a corporation
DOMESTIC CORPORATION
Organized under the laws of the Philippines
FOREIGN CORPORATION
Organized under the laws of the foreign country but
has the authority to operate in the Philippines
Forms of Entrepreneurial Venture
1. SOLE PROPRIETORSHIP
2. PARTNERSHIP
3. CORPORATION
NATURE OF ENTREPRENEURIAL VENTURE EXAMPLES:
Mushroom production, potted ornamental plants, hog
NATURE fattening and dispersal, poultry products, and
- Refers to whether the business is simply selling a fishpond.
product, manufacturing a product, or rendering a
service to its consumers
5. HYBRID BUSINESSES
CLASSIFICATIONS OF ENTREPRENEURIAL - It possesses the characteristics and nature of
VENTURE ACCORDING TO ITS NATURE combined types of business entities.
1. MERCHANDISING - It is inherent in the business to produce and sell
2. SERVICE goods and at the same time provide services to
3. MANUFACTURING customers.
4. AGRICULTURE
5. HYBRID BUSINESS EXAMPLES:
6. SPECIAL CORPORATION Restaurants and fast food chains

1. MERCHANDISING
- Business is engaged in the buying and selling of
products or goods.
- It does not alter the physical appearance,
mechanical parts or chemical content of the product
purchased from the seller.

EXAMPLES: 6. SPECIAL CORPORATION

Grocery stores, hardware stores, - It includes cooperatives, joint ventures, and non-
and department stores profit organization.

2. SERVICE
- It provides services to the customers.
- The primary sources of income are the different NATURE OF ENTREPRENEURIAL VENTURE
services rendered or provided to the customers.
NATURE
CLASSIFICATIONS OF SERVICE - Refers to whether the business is simply selling
1. Non-professional service ventures a product, manufacturing a product, or rendering
- It includes laundry shops, car repair shops, beauty a service to its consumers
parlors, educational institutions, and banking
institutions. CLASSIFICATIONS OF ENTREPRENEURIAL
2. Professional service ventures VENTURE ACCORDING TO ITS NATURE
- It includes law offices, medical clinics, and auditing, 1. MERCHANDISING
and consultancy services 2. SERVICE
3. MANUFACTURING
4. AGRICULTURE
3. MANUFACTURING 5. HYBRID BUSINESS
- Is a producer of goods or products. 6. SPECIAL CORPORATION
- It is engaged in buying raw materials and supplies to
be processed into finished products.

4. AGRICULTURE
- Is engaged in the production of agricultural goods
and animals.
- It may sells its products as raw materials or as
finished goods.
 - It is also known as "garbage in, garbage out"
(GIGO).

1. MANPOWER
1. INPUT ·- It refers to the human workforce involved in the
manufacture of products.
It includes the following: - It is the most critical and important factor of
1. Manpower production.
2. Materials - The entrepreneur must determine, acquire, and
3. Machine match the most qualified employees with the jobs.
4. Design
5. Instructions CRITERIA IN SELECTING MANPOWER
1. Educational qualifications and experience required
for
2. PRODUCTION PROCESS the job.
- Also referred to as the transformation or conversion 2. Status of employment, whether permanent or
process. temporary
- It is the stage of production where the materials are 3. Number of workers required for the job.
transformed into the final product with the aid of 4. Skills and expertise required for the job.
manpower and machine. 5. Appropriate time the workers is needed.
6. Conduct of background checking and issuance of
PRODUCTION PROCESS requirements.
It involves the following activities: 7. Amount of salary or wages and other mandatory
1. Procurement or acquisition of raw materials and benefits.
manufacturing supplies. 8. Availability of potential workers in the community.
2. Inspection of materials and supplies upon receipt at
the receiving section.
3. Storage of acquired materials and supplies. 2. METHOD or Production Method
4. Issuance of materials and supplies to the - It refers to the process or technique of converting
production line. raw materials to finished products.
5. Inspection of damaged or broken goods and - The raw material undergoes several stages before it
assessment of losses. is completed and becomes ready for delivery to the
6. Rework or repair of defective goods. target consumers.
7. Transfer of finished goods to the storeroom.

3. OUTPUT
-It represents the final products from the production
process and distributed to the customers.

FOUR M's OF PRODUCTION

- The most critical factors in the whole production
system are the inputs and the transformation process
because their quality determines the quality of the
output.
FACTORS IN THE SELECTION OF PRODUCTION
METHOD
1. PRODUCT TO PRODUCE
2. MODE OF PRODUCTION
3. MANUFACTURING EQUIPMENT TO USE
4. REQUIRED SKILLS TO DO THE WORK
1. PRODUCT TO PRODUCE
PRODUCT - is the physical output of the whole
production process.
- It should be valuable and beneficial to the
consumers and should satisfy their basic needs and
wants.
- A product can be heterogeneous or homogenous.
--
HETEROGENEOUS PRODUCT
- Has dissimilar characteristics, parts, and physical
appearance.
- Easily identified from other products.
- Examples: Makers of furniture, bags, and home
decors
HOMOGENOUS PRODUCT
- Has a physical appearance, taste, or chemical
content that can hardly be distinguished from the
other products.
- Examples: Makers of soft drinks and medicines
2. MODE OF PRODUCTION
- It refers to how the product will be produced.
PRODUCTION SYSTEM THAT MAY BE USED IN
MANUFACTURING THE DESIRED PRODUCT
1. Intermittent production system
-- Is adopted when the production process is basically
short and the machines are frequently changed.
-- Examples of entrepreneurs who use this are tailors,
goldsmiths, furniture makers, and manufactures of
farm equipment.
1. Intermittent production system
1. Project Method
METHODS
- The product is usually substantial in size and is
bound by a specific time to complete it.
EXAMPLES: Cargo vessels. Jumbo aircraft, and
buildings.
2. Job order method
- Production is completed by a single employee or a
batch of employees.
3. Batch method
- Production undergoes several stages and the
product is transferred from one worker to another.
2. Continuous production system
-Is adopted when the demand for the product is
considered constant.
-Production is not based on the order of customers
but for the stocking of inventories.
3. Just-in-time production system
- Goods are produced just in time when the market
needs or demands for them.
-The raw materials will be produced just in time for the
actual production to start and the delivery equipment
will be required in the production plant just in time
when the products are about to be completed.
-It is designed to eliminate wastage of resources and
to increase productivity.
3. MACHINE
-It refers to the manufacturing equipment used in the
production of goods or delivery of services.
IMPORTANT ELEMENTS IN THE PROCESS OF
SELECTING THE TYPE OF EQUIPMENT TO
PURCHASE
1. Types of products to be purchased
2. Production system to be adopted
3. Cost of the equipment
4. Capacity of the equipment
5. Availability of spare parts in the local market 6.
Efficiency of the equipment
7. The skills required in running the equipment
4. MATERIALS
- It refers to the raw materials needed in the
production of a product.
- It is basically form part of the finished product.
- In case the raw materials are of poor quality, the
finished product will be of poor quality as well.
IMPORTANT FACTORS IN THE SELECTION OF
RAW MATERIALS
1. Cost
2. Quality
3. Availability
4. Credibility of suppliers
5. Waste that the raw materials may produce
LESSON 9 - 1/10/23
INTRODUCTION TO BUSINESS PLAN
PREPARATION
BUSINESS PLAN
• Defined as a detailed and integrated written
document that describes the various activities
involved in opening and operating a new
entrepreneurial venture.
• Roadmap of the new business and entrepreneur.
• Determining possible business situations
considering the different perspectives of people who
are interested in the business.
• Must still consider the views of the customers,
creditors, and even the employees and staff aside
from the perspective of entrepreneur.
Two major tests that are conducted every time a
business idea is created
1. Test of possibility
■ It should have a positive results.
2. Test of feasibility
■ Once the new business idea has a positive
results, test of feasibility or viability can be conducted.
FEASIBILITY STUDY & BUSINESS PLAN
•The content and structure of the business plan are
almost the same as those of the feasibility study.
• The data shown in the feasibility study are the same
set of data presented or used in the business plan.
• Business plan presents a more detailed discussion
of how the business will be undertaken and operated.
FEASIBILITY STUDY
• It serves as the forerunner of the business plan.
• Its primary objective is to determine whether the
proposed business is feasible or not in all areas.
• If the outcome of the feasibility study is positive, then
the entrepreneur prepares the business plan.
MAJOR PARTS OF THE BUSINESS PLAN
I. INTRODUCTION
II. EXECUTIVE SUMMARY
III.ENVIRONMENTAL ANALYSIS
IV.BUSINESS DESCRIPTION
V.ORGANIZATIONAL PLAN
VI. PRODUCTION PLAN
VII. OPERATION PLAN
VIII. MARKETING PLAN
IX. FINANCIAL PLAN
X. APPENDIX
I. INTRODUCTION
It presents the general perspective of the
business.
It may consist of one to two pages.
IT INCLUDES THE FOLLOWING SECTIONS:
a. Proposed name of the business
It must:
☐ Reflect the business identity and image
Promote the philosophical values and culture that the
business values the most
Profess the brand identity of the product
Attract or influence the target consumers
• At least three suggested trade names must be
submitted to the Department of Trade and Industry for
approval and registration.
b. Address of the business
It must be correctly written because all business
correspondence is mailed to the business address.
▪ Raw materials and other manufacturing supplies are
also shipped by the seller to the designated business
address.
▪ Email address is also necessary to facilitate
electronic communication between the business and
the customers, suppliers, creditors, and other
significant parties.
c. Name of the owner or owners
It must be properly stated.
d. Description of the business
It must include:
Information about the type of product or service that
the business intends to produce or provide.
A brief information about the ultimate mission, vision,
and objectives of the business.
The other products or services that the business
plans to produce or provide.
e. Location of the business
The basic entrepreneurial consideration is to place
the proposed business in a strategic location that will
assure competitive advantage.
It indicates the reason/s for the selection of the
location.

FACTORS THAT MUST BE CONSIDERED IN

DECIDING THE LOCATION OF THE PROPOSED
BUSINESS
1. Proximity to the target consumers
2. Distance from the sources of raw materials, labor,
and utilities
3. Availability and cost of transportation
4. Peace and order situation
5. Presence of direct competitors
6. The geographic and climatic conditions

f. Funding requirement and source

▪ The estimated total initial cost of the business LESSON 10 - 1/10/23
venture must be clearly indicated.
▪ It should include the projected breakdown or
allocation of the total cost.
It also presents the source or sources of funds. MAJOR PARTS OF THE BUSINESS PLAN
The estimated period to settle the funding source I. INTRODUCTION
provided by the creditors must also be mentioned. II. EXECUTIVE SUMMARY
III.ENVIRONMENTAL ANALYSIS
IV.BUSINESS DESCRIPTION
V.ORGANIZATIONAL PLAN
VI. PRODUCTION PLAN
VII. OPERATION PLAN
MARKETING P
VIII. MARKETING PLAN
IX. FINANCIAL PLAN
X. APPENDIX

EXECUTIVE SUMMARY, ENVIRONMENT

ANALYSIS, AND BUSINESS DESCRIPTION

II. EXECUTIVE SUMMARY

■ It provides a summary of the different major
sections of the business plan.
▪ Points out the overall highlights of the business plan
as well as a bird's eye view of its sections.
■ It must be written in simple language.
Investors, creditors, and other significant parties
usually proceed to the details of the business plan
once they find the executive summary interesting
convincing, and worthy of further reading.
BUSINESS PLAN activities that will lead to the achievement of the
II. EXECUTIVE SUMMARY VMGO.
a. Vision, mission, goals, and objectives There's no standards model that will exactly fit all
of the business types of businesses because they have different
b. Business model strengths and weaknesses, infrastructures, networks,
c. Business and Product Position d. Wealth and value propositions.
Improvement Approaches e. Parties supporting the • Must define how the business gives importance to
business its relations with customers, creditors, suppliers and
internal human
resource.
EXECUTIVE SUMMARY SECTIONS
1. Vision, mission, goals, and objectives of the
business
• The business plan must depict the fundamental
characteristics, nature, philosophical values,
identity, and image of the business.
• These important concerns are embodied in the
business's vision, mission, goals, and objectives
(VMGO).
• It must be clearly stated and easily understood.
• Must be reviewed and revisited at least every
three year.

VISION
- An organization's vision is what it wants
to be known - for at some point in the
future (5-10+ years). Visions do not need to
be long documents.
3. Business and Product Position
- They just need to be a simple statement that
• It will help determine how the business defines its
describes the future.
course and the process of accumulating wealth.
MISSION
• It tells the size of the market and the target market
- The mission describes the day-to-day work
share of the business and product.
that, if the organization keeps doing it and
It must be able to convince the readers that the
doing it well, will eventually make the vision
proposed business has a competitive advantage in
become a reality. A mission is always
the market.
supported by one or more goals
GOALS
- Goals are the key efforts that must happen
for the organization to accomplish the
4. Wealth Improvement Approaches
mission. They provide a detailed description
• It describes the methodologies or approaches that
of the services, products and activities the
will be taken by the business in order to:
organization undertakes.
1. Maintain a competitive advantage
OBJECTIVES
2. Position the business in the market
- Objectives are the smaller steps, activities
3. Improve the market share
and milestones that must be completed in
4. Maximize the utilization of resources
order to achieve a goal. This is where the
day-to-day tasks, services, and projects fall
in the overall scheme of things.
5. Parties supporting the business
• The last section of the executive summary is a
2. Business model
description of the parties that strongly support the
• It defines the perspective of the business in terms of
business.
its structure, production, operation, and financial
THE PARTIES THAT HAVE A DIRECT
RELATIONSHIP WITH THE BUSINESS
1. Consumers 2. Creditors
3. Suppliers
4. Employees and staff
III. ENVIRONMENTAL ANALYSIS
▪ A strategic tool that helps determine the external
and internal factors affecting the performance of
the business.
These factors may be political, economic, social
or technological in nature.
It is considered the heart of the business
plan.
■ In today's competitive business environment,
environmental analysis is already a necessity. It may
consist of global analysis, societal analysis, and
industry analysis
A. Global Analysis
• Environmental analysis section may begin with a
description of the global business situation to provide
enough knowledge about the global perspective or
horizon of the business.
• The most significant bearing on the global analysis
is the possible business opportunities or ideas that
the global business trend offers.
• Global trend acts as an indicator of any favorable
sign for a business idea.
B. Societal Analysis
• Present the societal analysis and determine the
different variables affecting the societal environment.
VARIABLES:
1. Political forces
2. Economic forces
3. Sociocultural forces
4. Technological forces
5. Ecological forces
6. Legal forces
Must tell how the environmental forces affect the
proposed business and how great their effects are.
C. Industry Analysis
• It involves three important related tasks
3 IMPORTANT RELATED TASKS
1. Conducting a critical evaluation
of the forces in the industry that affects the proposed
business
2. Evaluating the probable position of the business in
the industry
3. Determining the most appropriate strategy that
may be adopted by the proposed business.
The gap between the consumer demand and the
competitor supply represents the unsatisfied demand.
Market segmentation is an entrepreneurial marketing
strategy designed primarily to divide the market into
small segments with distinct needs, characteristics, or
behavior.
Market targeting aims to determine the set of buyers
with common need and characteristics. They are the
market segment that the entrepreneurial venture
intends to serve.
Market Positioning refers to the process of arranging
a product to occupy a clear, distinct, and desirable
place in relation to other competing products in the
mindset of target consumers.
Demand and supply analysis
Also called consumer and competitor analysis.
The backbone or the foundation of all other analyses.
If there are no consumers or buyers of the product,
the business will never be created.
The entrepreneur must choose the scanning tools that
best suit his/her business venture.
■ May cover two to three pages.
■ The description must include the innovative features
of the business.
The reason/s for the selection of the form must also
be indicated.

It must also include the following

information:
1. Product or service that it plans to produce or serve
2. Various plant and office equipment
3. Size of the proposed business
4. Personnel requirement

BUSINESS PLAN
III. ENVIRONMENTAL ANALYSIS
a. Global Analysis
b. Societal Analysis
C. Industry Analysis
EXECUTIVE SUMMARY, ENVIRONMENT
ANALYSIS,
AND BUSINESS DESCRIPTION

IV. BUSINESS DESCRIPTION

■ It presents the nature and form of the business to
be undertaken.
 B. LIABILITY OF THE OWNER OR OWNERS
-> It describes the extent of the owner's financial
obligations with creditors.
->The extent of financial liability can either be limited
or unlimited.

C. ORGANIZATIONAL STRUCTURE
->It shows and defines the hierarchy of the different
positions in the organization and the interrelationships
LESSON 10 - 1/10/23

ORGANIZATIONAL PLAN, PRODUCTION PLAN,

AND OPERATION PLAN

of the different offices or departments.

Organizational
charts depicts the flow of communication within the
organization, and the line and staff authority that must
be observed and executed.
The entrepreneur prepares the structure that best fits
V. ORGANIZATION PLAN the organization and hires the most qualified people
-> It provides a detailed description of the business in to do the tasks.
terms of the following:
a. Forms of the business organization
b. Liability of the owner or owners c. Organizational
structure
d. Roles and responsibilities
e. Salary requirements

A. FORM OF THE BUSINESS ORGANIZATION

-> A business organization can come in the form of a
sole proprietorship, a partnership, or a corporation.
FACTORS AFFECTING THE SELECTION OF THE
MOST APPROPRIATE BUSINESS FORM:
1. Capital requirement D. ROLES AND RESPONSIBILITIES
2. Liability of the owner or owners Roles and responsibilities of the various positions in
3. Management and supervisory skills 4. Tax the business organization must be clearly defined in
implications order to minimize and avoid misunderstanding and
5. Government intervention overlapping of functions.
6. Nature of the business
7. External financing requirement
A clear set of selection criteria for every position in the
organization eases the hiring process and assures the
organization that only qualified personnel are hired.
Entrepreneur must prepared early a list of positions
together with the respective job specifications.
E. SALARY REQUIREMENTS
Organizational plan must show the total estimated
monthly and annual salary requirements of the
business.
If some legal plans and moves of the Congress of the
Philippines will bring about increases in the salaries of
personnel, the projected amount must be included.
VI. PRODUCTION PLAN
-> It presents or describes activities related to the
production of goods. -> It is the result of the industry
analysis, particularly the study of supply and demand
and consumer behavior.
THE PRODUCTION PLAN USUALLY INCLUDES:
a. Production Schedule
b. Production Process
c. Processing plant and equipment
d. Sources of materials
e. Production cost
This section basically applies to manufacturing
entities.
For service entities, this section must be modified and
labeled as Service Provision Plan.
A. PRODUCTION SCHEDULE
-> It presents the total number of goods to be
produced and the expected time to produce them.
FACTORS THAT CAN AFFFECT THE TOTAL
NUMBER OF UNITS TO PRODUCE:
1. Demand for the product 2. Availability of resources
3. Capacity of the plant
B. PRODUCTION PROCESS
-> Different processes or stages involved in the
production of goods must be clearly spelled out as
well as the description of the following:
1. Exact processing procedure
2. Materials, parts, or ingredients required 3.
Expected time to process the product
C. PROCESSING PLANT AND EQUIPMENT
-> It describes the manufacturing plant, the machinery
and equipment, and the various tools to be used in
the production of goods, including their respective
estimated
costs.
-> It also includes the location of the processing plant
and the reason for the selection of the site.
FACTORS IN THE SELECTION OF THE
MACHINERY AND OTHER EQUIPMENT
1. Capacity of the plant or machinery
2. Model of the machinery or equipment
3. Availability of spare parts
4. Cost and terms of payment
D. SOURCES OF MATERIALS
-> Possible sources of raw materials and
manufacturing supplies must be described in terms of:
1. Proximity of the source to the processing plant
2. Payment terms and conditions
3. Discounts and damages
4. Terms of shipment
-> Quality of raw materials plays a very significant role
in the production of quality products.
-> Entrepreneur must find trustworthy suppliers and
maintain good relationships with them.
E. PRODUCTION COST
-> It must show the estimated cost of production.
The three elements of cost, namely: labor, direct
materials, and factory overhead must be properly
described and accounted for.
The total cost of the proposed product may serve as
the basis in setting its selling price, which must not be
lower than its production cost.
VII. OPERATION PLAN
-> Is a major section of the business plan that outlines
the various activities, from the acquisition of raw
materials to the delivery of the products to the target
consumers.
OPERATION PLAN COMMONLY COVERS:
a. Evaluation of suppliers
b. Materials requisition and receiving procedures c.
Storage and inventory control system
d. Shipment and inventory control system
e. Functions of support services
A. EVALUATION OF SUPPLIERS
→ The entrepreneurial concept of quality
management is that control starts from the suppliers
of raw materials.
→ Business starts to implement its control system
upon receipt of the materials.
→ Suppliers of raw materials must practice total
quality
management to minimize or avoid defects or
damages in the supplies.
→ Business must conduct a critical evaluation of the
suppliers of raw materials and establish harmonious
working relationships with them to reduce the threats.
B. MATERIALS REQUISITION AND RECEIVING
PROCEDURES
→The procedures in requisitioning raw materials and
other manufacturing supplies and receiving them
must be explained in the operation plan.
→The person assigned to conduct inspection upon
receipt of the materials must also be included.
IT COVERS THE FOLLOWING AREAS:
1. Basis of receiving the raw materials 2. Comparison
of the order and receipt 3. Quality of materials
received
C. STORAGE AND INVENTORY CONTROL
SYSTEM
→ It describes how the business stores the finished
goods and protects its inventory against possible theft
and losses.
THIS SECTION DEALS WITH THE:
1. Owning or renting a warehouse
2. Management of the warehouse 3. Procedures in
the transfer of goods
4. Control of inventory in the warehouse
→ Under just-in-time manufacturing system (JIT
production system), storage and warehousing are
eliminated because only actual orders are produced
at the exact required time.
D. SHIPMENT AND INVENTORY CONTROL
SYSTEM
→The basis of sales invoice and other shipment
documents are the purchase order received from the
customers.
→ The sales contract and shipping documents must
be properly approved before the product is shipped to
the customers.
THIS SECTION COVERS THE FOLLOWING:
1. Approval of shipping and sales documents
2. Terms of shipment
3. Manner of shipping the product
4. Other terms and conditions like sales and contructs
E. FUNCTIONS OF SUPPORT SERVICES
→It defines and describes the function of other
support services relative to the acquisition,
processing, and shipment of goods to the consumers.
role of other
It also includes the important role of other support
services such as the maintenance personnel and the
security officers and staff.
LESSON 12 - 1/10/23
MARKETING PLAN
AND
FINANCIAL PLAN
VIII. MARKETING PLAN
→ It details how the proposed business will sell its
product to the target consumers.
→ Entrepreneur may opt to discuss all the 7P's of
marketing in the marketing plan to reiterate how a
product is distributed to the target consumers.
→ Entrepreneur may also present the most 1. Statement of Comprehensive Income
appropriate marketing strategy that will provide a 2. Statement of Cash Flows
competitive marketing position for the product and the 3. Statement of Changes in Equity
business in general. 4. Statement of Financial Position

VIII. MARKETING PLAN IX. FINANCIAL PLAN

IT MAY CONSIST OF THE FOLLOWING FINANCIAL STATEMENTS ANALYSIS
IMPORTANT SECTIONS: → Financial statements do not provide any useful and
1. Product relevant information to the users unless they are
2. Place evaluated and analyzed.
3. Price → Financial statement analysis is conducted to
4. Promotion determine the financial operation of the business in
5. People terms of its liquidity level, profitability of operations,
6. Packaging and solvency status.
7. Process

BUSINESS PLAN OUTLINE

IX. FINANCIAL PLAN A. TITLE PAGE
It accumulates and describes all the data expressed 1. Proposed name of the business 2. Address of the
in monetary units from the other sections of the business
business plan. 3. Name of the owner or owners B. TABLE OF
⇒ It simply collates and describes the various sets of CONTENTS
information derived from the other sections of the C. LIST OF TABLES
business plan. D. LIST OF FIGURES
E. LIST OF APPENDICES
F. INTRODUCTION
4. Description of the business 5. Location of the
IX. FINANCIAL PLAN business
IMPORTANT AREAS 6. Funding requirements and sources
1. Major assumptions
2. Projected statement of comprehensive income 3.
Projected statement of cash flows G. EXECUTIVE SUMMARY
4. Projected statement of changes in equity 5. 1. Vision, mission, goals, and objectives
Projected statement of financial position 6. Financial of the business
statement analysis 2. Business model
3. Business and product positions 4. Wealth
improvement approaches 5. Parties supporting the
business
IX. FINANCIAL PLAN
MAJOR ASSUMPTIONS
→ Financial statements in the business plan are not H. ENVIRONMENTAL ANALYSIS
actual but rather projected, thus requiring some major 1. Global analysis 2. Social analysis
assumptions based on reliable data or information. 3. Political forces 4. Economic forces
5. Sociocultural forces
6. Technological forces 7. Ecological forces 8. Legal
forces
IX. FINANCIAL PLAN 9. Industry analysis 10. Customers 11. Competitors
FINANCIAL STATEMENTS 12. Creditors 13. Suppliers 14. Government
→ Financial plan features the following different 15. Shareholders 16. Employees
projected financial statements of the proposed 17. Trade associations 18. Market forecast 19. Market
business: share 20. Market position 21. Marketing Strategy
I. BUSINESS DESCRIPTION
1. Product or service that it plans to produce or serve
2. Various plant and office equipment
3. Size of the proposed business
4. Personnel requirements
J. ORGANIZATIONAL PLAN
1. Form of business organization 2. Liability of the
owner or owners 3. Organizational structure
4. Roles and responsibilities 5. Salary requirements

K. PRODUCTION PLAN
1. Production Schedule
2. Production Process
3. Processing plant and equipment 4. Sources of
materials
5. Production cost
L. OPERATION PLAN
1. Evaluation of suppliers
2. Materials requisition and receiving procedures
3. Storage and inventory control system
4. Shipment and inventory control system
5. Functions of support services

M. MARKETING PLAN
1. Product
2. Place
3. Price
4. Promotion
N. FINANCIAL PLAN
5. People
6. Packaging
7. Process
1. Major assumptions
2. Projected statement of comprehensive income 3.
Projected statement of cash flows
4. Projected statement of changes in equity
5. Projected statement of financial position 6.
Financial statement analysis
O. APPENDIX