Business Plan

Simplified version
by: Bryant C. Acar
Business Plans…

…Need to be employed by anyone who is in

business

…Set a strategy for future growth and can be

used to attract investors and loans
 …Business Plans are also kept
They aren’t just used and developed over time by
by start-ups… existing businesses, and even
started over when new
opportunities arise.
Types of Business Plan include:

• Summary • Start-up
• Special Project • Presentation
• Feasibility • Internal
• Mini • Growth
Business Plan Essentials:
 I. EXECUTIVE SUMMARY
1. Brief Description of the Project and its Goal
2. Brief Selling Points (Strategy)
3. Brief Project Values; Commitment and Contributions
4. Brief Description of the Entrepreneurs and income
projection
 II. MARKETING PLAN

1. Description of the Product

2. Comparison of the Product with its Competitors
3. Location
4. Market Area
5. Main Customers
6. Total Demand
7. Market Share
8. Selling
9. Sales Forecast
10.Promotional Measures, Logo, Slogan and Packaging
11.Marketing Strategy
12.Marketing Budget
 III. PRODUCTION PLAN
1. Production Process
2. Fixed Capital
3. Life of Fixed Capital
4. Maintenance and Repair
5. Sources of Equipment
6. Planned Capacity
7. Future Capacity
8. Terms and Conditions of Purchase of Equipment
9. Factory Location and Lay-out
10. Raw Materials
11. Cost of Raw Materials
12. Raw Materials Availability
13. Labour
14. Cost of Labour
15. Labour Availability
16. Labour Productivity
17. Factory Overhead Expenses
18. Production Cost
 IV. ORGANIZATION AND MANAGEMENT
1. Form of Business
2. Organizational Structure
3. Business Expenses and Qualifications of
Entrepreneur
4. Pre-Operating Activities
5. Pre-Operating Expenses
6. Equipment
 V. FINANCIAL PLAN
1. Project Cost
2. Financing Plan and Loan Requirement
3. Total Sales (daily)
4. Cash Flow Statement (daily)
5. Return Of Investment (%) (daily)
6. Weekly and Entire Project Projection
VI. RESUME OF ENTREPRENEURS
VII. DAILY FINANCIAL FLOW/WEEKLY FINANCIAL FLOW
VIII. DOCUMENTATION (PHOTOS)
IX. RECEIPTS OF SALES AND EXPENSES
BUSINESS PLAN WITH
SAMPLE WRITE UP
 I. EXECUTIVE SUMMARY
1. Brief Description of the Project and its Goal
2. Brief Selling Points (Strategy)
3. Brief Project Values; Commitment and Contributions
4. Brief Description of the Entrepreneurs and income
projection

NOTE: MAKE THE SUMMARY IN PARAGRAPH FORM

TAMBUG is an ice candy business that will be a springboard of an
innovative project/product in STEC Senior High School. TAMBUG’s
main product is an Ice Candy of varying flavors that suited for
everyone’s descriminating palate. TamBug means “Tam-is Nga
Bugnaw,” and its slogan is “Tikman Mo ang Sarap Ko.”
Our business goal as school campus ICE CANDY retailing business is
to become the number one choice of the students in the whole
campus. We envision that our product will become part of the daily
habit of all students. A sweet dessert after that sumptuous lunch or
a sweet partner for snacks. We are set to retail a wide range of
flavors that will catch the taste of our customers. TAMBUG is set to
redefine how school based ice candy store businesses should be
run, not only in STEC but also in the whole community.
Our strongest selling point is the unique selling strategy of ensuring
that we brand kiosk and strategically position them in different
locations prone to high student traffic all around STEC. We make
sure that customers would visit our kiosk, would love and would
want to come back and make more purchase—we take delight in
welcoming repeated customers over and over again. Loving our
Customer is our main point of doing business and delighting them
with our sweet brand of ice candy.
TAMBUG ICE CANDY store will at all time demonstrate commitment
to sustainability, both individually and as a start up business, by
actively participating in our school campus and integrating
sustainable business practices. We will ensure that we hold
ourselves accountable to the highest standards by meeting our
customers’ needs. We will cultivate a working environment that
provides a human, sustainable approach to earn a living in a most
creative and friendly ways.
TAMBUG Ice Candy is a business partnership that is run by a
collaborative duo (pair) who have great determination, passion and
willing to take the risk in fulfilling and making the business more
progressive. The main entrepreneurs are: Mr. Julius Elian Von
Amores and Ms. Allyssa Trixie Faith Carpentero Venci. Both are
from STEM strand who would like to venture in a small capital of
Php 500 and projects income to Php 5,000 in 2.5 months time.
 II. MARKETING PLAN

1. Description of the Product

2. Comparison of the Product with its Competitors
3. Location
4. Market Area
5. Main Customers
6. Total Demand
7. Market Share
8. Selling
9. Sales Forecast
10.Promotional Measures, Logo, Slogan and Packaging
11.Marketing Strategy
12.Marketing Budget
1. Description of Product
Ice candy is one of the summer treats of the Filipino, especially the
kids. It is a frozen juice or shaked fruits in little ice bags where one
would have to nibble at the end of the plastic to sip or bite the ice
candy. However, this is saleable not only during summer, but all
throughout the year. Moreover, this does not only entice the kids
but also adults.

Ice candies come in different flavors. The most common flavors are
mango, pineapple, avocado, and grapes.

The proposed product is buko ice candy. The entrepreneurs chose ice
candy to be the product not only because of the fact that the
materials are readily available, but also because it is saleable and
affordable especially for students. The product is sold at five pesos.

The product is called “Tambug” which is a clipped form from a

Visayan words “Tam-is nga Bugnaw” which literally speaks of our
buko ice candy.
2. Comparison of the Product with its Competitors

The product is unique from the ice candies of the competitors

because of its ingredients and flavors. It is not an ordinary ice
candy because aside from its unique taste, it is also apparently
healthy because of the “buko” or the coconut. The customers will
definitely enjoy the taste without feeling guilty of their diet
because the main ingredient is organic.
3. Location

The location is in Basak Lapu-Lapu City, Cebu, where the materials and ingredients
are readily available.

4. Market Area

The product will be sold to the Science and Technology Education Center (STEC)
canteen, where students would visit for snacks and lunch time. It will also be sold in
the residential areas of the entrepreneurs. The products will be sold on-line for bulk
orders and special events.

5. Main Customers

The main customers are the students and parents of the school. Aside from the
students and parents, teachers, and staff may also be a market of the buko ice candy.

6. Total Demand

The entrepreneurs will produce at about 100 pieces of ice candy a day to be sold in
the canteen. And another 100 pcs to be sold at the residents of the entrepreneurs.
7. Market Share
The school has more than 500 students including the teachers
and the staff and visiting parents. Out of the population, only one
hundred is expected to buy the product. This means that the market
share is 20% of the total market. And for residential selling around 2%
would be the target market share (i.e. 2000 population and 2% is 20
pax) a day.

8. Selling Price

The buko ice candy is sold at 5 pesos but since it is sold through the
canteen it will then be sold at six pesos. One peso per ice candy may
be given to the canteen as share.

9. Sales Forecast

One hundred percent of the product will be sold every day from
Monday to Friday. And full blast in the residents of the entrepreneurs
during weekends.
10. Promotional Measures, Logo, Slogan and Packaging
The product is promoted in a form of advertisement through
friends. A Flyer will be made of promotional purposes. FB account
will also be made to advertise the product.

(Attached here the brochure, flyer, logo, slogan, packaging and Fb account)
11. Marketing Strategy

The entrepreneurs may utilize, free taste but limited to only 5-10
ice candies on the first day of the launching, word of mouth, and
may also utilize the internet where the partners may take pictures
of the product and upload it.

12. Marketing Budget

The entrepreneurs utilize the internet and word of mouth, which
means that they do not need to spend money for marketing
budget. Free taste of about five to ten ice candies may cost only
about 20 pesos.
 III. PRODUCTION PLAN
1. Production Process
2. Fixed Capital
3. Life of Fixed Capital
4. Maintenance and Repair
5. Sources of Equipment
6. Planned Capacity
7. Future Capacity
8. Terms and Conditions of Purchase of Equipment
9. Raw Materials; Cost of Raw Materials & Raw Materials
Availability
10. Lay Out and Design of the set-up
11. Labour
12. Cost of Labour
13. Labour Availability
14. Labour Productivity
15. Factory Overhead Expenses
16. Production Cost
 1. Production Process
For daily production we are required to produce 100 pieces of ice
candy. To produce 100 pieces of ice candy, it takes 1 hour
100/1 = 100 pieces of ice candy
We estimate that one worker can produce 50 pieces of ice candy
per hour.
100/50 = 2 workers
Therefore we need 2 workers to produce 100 pieces of ice candy
in one hour. Tambug Ice Candy will be sold at the canteen very
Monday until Friday. Mon – Fri and Saturday and Sunday selling
at the residents. Our business will start the operation on 8:00 am
until 4:OO pm because we want to take much reservation and
attract more customers to come and buy our TAMBUG Ice Candy.
2. Fixed Capital
Estimated fixed capital is 500.00.

3. Life of Fixed Capital

Expected life of fixed capital is one year.

4. Maintenance and Repairs

Maintenance of the equipment used (ice bucket) is done every
end of the month. But the cleaning should be done every day.

5. Sources of Equipment
Equipment used in the business may be bought in Mercado
(LLC) wherein we can buy a lesser price of the bucket.
 6. Planned Capacity
Based on the production of the Total Product Cost of ₱190, day 1 this will
produced 100pcs “ Buko Ice Candy”.
7. Future Capacity
The next production will be ₱250pcs/day.
Day 2-Cost/Buko Ice Candy is ₱1.90-₱250 x 1.90=₱475.00
Money from sales of 100pcs.day 3- can produce 250 pcs/day
Day 4- produce 250pcs/day
Day 5-can produce 250pcs/day
8. Terms and Conditions of Purchase of Equipment
No equipment to be purchased.
9. Raw materials availability
Raw materials are always available all year round. It can be purchased at
the public market or any supermarket.
10. Location and Lay-out Design
11. Labour
Direct labor needed on the 1st production are 2 persons. Indirect labor needed
is one person only (from a mentor who knows how to do it). Skills needed for both
direct & indirect labor is only hard work and sales ability.
12. Cost of Labour
Labor cost allocated for mentor is free. Entrepreneurs will have hands-on in
making the ice buko.
13. Labour Availability
Workers are always available all year round.
2.16 Labour Productivity
The workers will be motivated to do better if products will be sold based on
projection; orders and reservations. Production will increase due to advertising and
effort of the entrepreneurs.
17. Factory Overhead Expenses
This includes the electric bill of ₱20.00 for the production of 100pcs Buko Ice
Candy.
2.18. Production Cost
Production cost per unit of Buko Ice candy is ₱0.47
Computed as follows:
Labor Cost - 0
Electric Bill - 20
Total 20
Divide by 100 pcs.
0.20/unit
 IV. ORGANIZATION AND MANAGEMENT
1. Form of Business
2. Organizational Structure
3. Business Expenses and Qualifications of
Entrepreneur
4. Pre-Operating Activities
5. Pre-Operating Expenses
6. Equipment
1. Form of Business
The business will be organized in a form of business
partnership that consists of 2 entrepreneurs (paired by the teacher)
2. Organizational Structure
The business will be managed by two owners of the
business. And the rest will be network of clients and retailers.
Owner 1 Owner 2

Retailer 1 Retailer 4

CUSTOMER 1 CUSTOMER 1 CUSTOMER 1 CUSTOMER 1

3. Business Experienced and Qualification of the Entrepreneurs
The TAMBUG Ice candy is first of its kind and will be
launched as a new product with new concept. The project is an
application of the Entrepreneurship class. The entrepreneurs are
aspiring STEM students with no formal background in selling other
than informal trading in occasional manner.
4. Pre-operating Activities
The pre-operating activities include the product testing where
the sample of the products were tested by actual 20 respondents
of STEC. The result of the product testing is a weighted mean of
93.20 which means outstanding. The formal launching of the
product will be on January 19, 2017.
5. Pre-operating Expenses
The expenses that will be/were incurred before the
business can operate will be/were as follows:
(list here the materials and cost)

6. Equipment
Ice bucket will be the main equipment that cost 120 pesos.
Refrigerator, cooking materials will be borrowed from the owner’s existing
equipment. (attached picture of equipment and tools)
 V. FINANCIAL PLAN
1. Project Cost
2. Financing Plan and Loan Requirement
3. Total Sales (daily)
4. Cash Flow Statement (daily)
5. Return Of Investment (%) (daily)
6. Weekly and Entire Project Projection
1. Project Cost
Total project cost is 190 pesos. Break down of the total cost
are as follows
A. Ingredients
1can milk (condense 370 ml) 31.00
I kilo white sugar 48.00
3 pieces young coconut (grated) 3@ 15 45.00
TOTAL COST OF INGREDIENTS 124.00
A. Cost of Production
Labor cost (1 person for 30 minutes) 27.00
Transportation (2way) 14.00
Plastic cellophane 5.00
Electric Cost (refrigerator) 20.00
TOTAL PRODUCTION COST 66.00
TOTAL PROJECT COST 190.00
2. Financing Plan and Loan Requirement
Sources of Funds : Owners’ Savings
Each owner will contribute 80 pesos to raise 190
pesos equivalent to the total projected cost
3. Total Sales
500.00 (100 pieces @ 5pesos)
Less: Cost of goods sold 190.00
NET PROFIT 310.00
4. Flow Statement
TAMBUG ICE CANDY
Cash Flow Statement (Daily)
CASH IN FLOW
Cash sales 500.00
Collection of receivables 0.00
TOTAL CASH INFLOW 500.00
CASH OUTFLOW
Purchase of raw materials 124.00
Payment for labor costs 27.00
Payment for electrical charges 20.00
Supplies (cellophane) 5.00
Transportation 14.00
TOTAL CASH OUTFLOW 190.00
Net Cash Inflow 310.00
Add: Cash Balance,beginning 0.00
Cash Balance,Ending 310.00
5. ROI
ROI = Net Profit/Total Investment x 100
310.00/ 190.00 x 100%
ROI = 163.16
6. Weekly Projection Php 310 (less 50% conservative projection)
Php 155 X 5 days (weekends not included)
= Php 775 per week net sales

Week January 19 – Projection of Weekly Projected Project

March 9, 2018 Net Income Income
Week 1 775
Week 2 775
Week 3 775
Week 4 775
Week 5 775
Week 6 775
Week 7 775
Total 5,425 Php 5,425
+ Full Sales Php 5, 425
+ week ends Php 2, 170
Php 13, 020
VI. RESUME OF ENTREPRENEURS
VII. DAILY FINANCIAL FLOW/WEEKLY FINANCIAL FLOW
VIII. DOCUMENTATION (PHOTOS)
IX. RECEIPTS OF SALES AND EXPENSES
Reminders:
- short size bond paper
- Verdana 12 font size
- 1.5 space
- Clear book (one page per sheet back-to-back)
- Presentation in PPT January ONLY PART 2 & 4
- Launching on January 19 ( number of products to be sold based on
projected daily sales); brochures/flyers, table with tarp (tarp should
be complete with contact numbers, prices and products)
Immersion Exhibit (January 19, 2018)
- By batch (regardless of assignment)
- To prepare, Tarpaulin with all the photos and
captions
- Portfolio
- Program (to be finalized by January)