CONTENT OF A BUSINESS

PLAN
1. Brief description of the product of
the product or service.

•Describe briefly what you want

to produce and how you wish to
undertake the whole business
from production to marketing.
2. Market study
• In this activity you are going to establish
whether you will have enough sales and
customers to keep your business going. It
will be helpful to answer the following
questions:
• What will you market or sell?

Clearly define your product or service. How is it similar or

different from what your competitors are selling? If you are
selling a new product you have invented, then you will have to
explain your invention in detail and provide a drawing of it. If it
is a service, such as laundry, then list the coverage of services
you are offering such as dry cleaning, pressing, with pickup and
delivery, and so on. Also describe the uses of the product or the
limitation of your service offerings. For example, your service is
exclusively for females or children.
• To whom will you sell?

First, define the territory which you will cover

then selling your product. Will it include only
the town proper or also nearby barrios and
barangays? Then specify who the main
customers will be. Describe in terms of sex,
age, education and other characteristics.
Estimate the approximate number of people in
each category.
• How much will you sell?
This refers to the numbers of goods or services which you will produce for
sale to customers. To obtain this, you must first estimate how much is being
sold now by all your competitors. Estimate their average individual and
combined sales within a specific period of time. Then estimate the total
number of products that your main customers are likely to buy within the
specific period of time you covered. Subtract from this amount the figure you
obtained as the total sales competitors.
The difference represents the available market share that you can freely
aim to capture. Now decide whether you are willing to produce and sell as
much the available market share has indicated. Sometimes, because of
limitations of capital, ability and other resources, you may not be able to
produce too many products. Indicate, therefore, how much you will produced
or provide the products is near enough to customers for convent attractive
buying.
• How will you sell to the customers?

First of all, you must think of the

place. Where you will locate the
business? It is important that the site
where you will produce or provide the
product is near enough to customer for
convenient and attractive buying.
• Then think the quality and price.

How will you compare the product

with your competitors? Decide whether
you will sell at a cheaper price, and
whether your quality will be better or
lower than others.
• Then consider promotion

How will you promote your product, or

whether you will depend on friends to
recommend your product, or whether you will
advertise on the local radio, or erect big bill
board to let other know that your product
exist. You can think of many ways to attract
customers to buy from you.
3. Production study.

• This part will provide details on

how you will produce the product
or provide the service that you
are selling.
• How are you going to produce your product?
Indicate the production process if
you are going to make something or
describe your service packages if you
plan a service business.
• How much will you produce within the period
of time?
• What will you need in order to produce?

Do you need a building,

machine, tools or equipment ,
raw material , water
electricity, maintenance?
• Where will you produce?

Will you be producing in the same

place where you will or not? If not,
how will you move the products from
production to market area?
• Who will produce?
• Will you work?
• Will you hire people?

• How many are they and what are their qualification.

4. Financial study.

This part will show you how much

capital you will need to start and run the
business, as well as how much profit you
may expect to again from all your efforts.
A. What need to be financed?

Think of all the things that will need to

be coasted such as wages, rent, tools,
raw materials, transportation and
advisement. Get the total.
B. How will the business be financed?

Where will the amount you obtained in

(a)come from? Will you borrow from
someone?
(b)From whom and how much will you
borrow?
C .How will you cost and price your product?

Separate all expenses related to the

production, marketing and operation of
the business. Obtain the unit cost of tour
product and add some amount (mark up)
to obtain the prize.
D. How much will the profit be?

Determine your total sales and

subtract this from your
expenses .the difference is the
profit
5. Organizational study

• This part of the business plan will explain

how you will organize and manage the
business. Will you be the sole owner of the
business or will you have partners?
• If you have partners specify the role of each
one.
5. Organizational study

• This part of the business plan will

explain how you will organize and
manage the business. Will you be the
sole owner of the business or will you
have partners?
• If you have partners specify the role of
each one.
Someone who launches a small enterprise should
undertake careful business planning so as to avoid
many costly mistakes. Even a simple business plan
requires a lot of work and thorough analysis of data.
for a new comer, doing the business plan is good
introduction to the many factors to look out for
when running a small business. it is also a good test
as to whether one is indeed that motivated to start
the business.