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The Business Plan

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A document that helps the small

What is business owner determine what
resources are needed to achieve
Business Plan? the objectives of the firm, and
provides a standard against which
to evaluate results.
+

 Toserve as management’s guide

Purpose of a during the lifetime of the business

Business Plan
 To fulfill the requirement for
securing lenders and investors.
+  Title page and Contents
 Executive Summary
 Description of the Business
 Description of the product or
Parts of the service

Business Plan  Market Strategies

 Analysis of the competition
 Operations and Management
 Financial Data
 Supporting Documents
+ A. Type of Business
 A short explanation of the
Industry
 Description of the Business
 Name of the Business
 Address of the Business
Executive  Telephone Number of the
Summary Business
 Email and Website Address
 Social Media Address
 The name of the proponents
+ B. Management, Marketing and
Financial Highlights
 B.1. Management
 Owners of the Business and
Position of the Key People
 B.2. Marketing
Executive  Definition of the Market
Summary  Determination of the Market
Share
 Positioning Strategy
 Pricing Strategy
 Distribution Strategy
 Promotion Strategy
+ B. Management, Marketing and
Financial Highlights
 B.3. Financial Highlights
 Operating Expenses
 Capital Requirements
 Cost of Good Sold
Executive  Income Statement
Summary  Balance Sheet
 Cash Flow Statement
+ C. Socio Economic Contributions
 Provide Taxes
 Provide Employment
 Corporate Social
Responsibility

Executive
Summary
+  The name of the company and
the name of the brand
 Visionof the company
 Explanation

 Missionof the company

About the  Explanation

Company  Valuesof the company

 Explanation

 Company Logo with definition

 Explanation
+  The product or service must be
described in the following way:

 The important features of the

product or service
Marketing
A detailed description of how
Plan the product is used
A. Product and Service  What makes the product or
to Sell
service different from others
available in the market.
(Unique Selling Proposition)
+  Pricing Strategy
 Customer’s perception of
value in the firm’s kind of
business
 Cost involved such as
Marketing overhead, storage,
financing, production and
Plan distribution
A. Product and Service
 Profit objectives of the firm
to Sell
+  PricingStrategy
 Cost plus pricing
 Demand Pricing
 Competitive pricing
 Markup pricing
Marketing
Plan
A. Product and Service
to Sell
+  DistributionStrategy
 Direct Sales
 Original equipment
manufacturer sales
 Manufacturer’s
Marketing representatives
Plan  Wholesalers

A. Product and Service  Brokers

to Sell  Retailers
 Direct mails
 Social Media and Web
+  Definition

 AreaCoverage
of the Market

 Population Data
 Determination of Market Share
(Niche) using Slovin Formula
Marketing
Plan
B. Target Market

 Customer
or Consumer
 Demographics and Psychographics
+  Positioning Strategy
 What does the customer
really want to buy from the
firm?
 How is the product or
Marketing service different from the
competitors?
Plan  What makes the product or
B. Target Market
service unique?
+ Total Potential Demand
Number of prospects in 1,000
the Target Market
Frequency of purchase 48 times
Marketing per year (average)
Total number of 48,000
Plan purchases per year
Average payment per Php 1,000
C. Demand and Analysis purchase
Projected total sales per Php
year 48,000,000
 Present Suppliers
1. Supplier A Description

2 . Supplier B Descriptions

Present Competitors
Competitors Product Price Place Promotion
Competitor A
Competitor B

Product – Description of the product

Price – Price point of the product
Place – distribution channel of the product
Promotion – Competitors Practices
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 Analysis of the Competition
 Product SWOT Analysis
Marketing
Plan Present Competitors
D. Marketing Program Own Company Competitor B Competitor C
and Strategies Price
Product
Place
Promotion
People
+  Own
 Radio
Marketing Program
Commercial
 Description of the radio
commercial
 Video Commercial

Marketing  Description of the video

commercial
Plan  Print

D. Marketing Program  Posters

and Strategies  Description of the poster
 Flyers
 Description of the Flyers
 Social Media Channel
 Purpose of using the channel
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 Compute for the Marketing
Expenses
Marketing  Table form
Plan
D. Marketing Program
and Strategies
PRODUCTION/OPERATION PLAN
A. Technical Production Description
B. Production Operation by process
1. Step by step procedure
2. Duration per step per batch
3. Labor and Machine requirements per step
C. Production Schedule
1. Monthly Schedule
D. Labor Requirement
E. Machinery/Equipment Requirement
F. Raw Materials requirement
G. Plant/Factory Location
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Production Operation per Process
Process Time Labor Equipment
Grilling 20 mins 1 person Oven
Cooking 60 mins 1 person Stove
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Production Schedule
Time Activities
8:00 am – 9:00 pm Cooking
9:00 am – 10:00 pm Grilling
PRODUCTION/OPERATION PLAN
H. Plant Layout
I. Waste Disposal System
J. Quality Control System
K. Production Cost
1. Total Production per year
2. Production cost per unit
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Cost of Good Sold (COGS)
Materials Cost Unit of Cost per Unit Quantity of Cost per unit
Measure of Measure Ingredients
per unit
Cooking Oil Php 30.00 60ml Php 0.5/ml 4ml Php 2/ml
Butter Php 54.00 200gms Php 0.27/gms 34 gms Php
9.18/gms
Packaging Php 60.00 10pcs/pack Php 6/pc 1pc Php 6/pc
Php 17.18

Cost per unit of measure = Cost / Unit of Measure

Cost per unit = Qty of Ingredients per unit x Cost per unit
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Markup
Pricing
Formula
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Gross Margin
Formula
 ORGANIZATIONAL PLAN
A. Legal Form of Business
B. Organizational Structure
C. Qualification of Officers
D. Office Equipment
E. Gantt Chart of Activities
1. Charting activities against time
F. Administrative Expenses
 FINANCIAL PLAN
A. Total Project Cost
B. Sources of Financing

C. Projected Financial Statement

1. Projected Cash Flow Statement
2. Projected Income Statement
3. Projected Balance Sheet
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 Rent

 Advertising and Sales Promotions

 Supplies

 Utilities

 Packaging and Shipping

Operating  Maintenance and Repair

Expenses  Equipment Leases

 Payroll

 Payroll Benefits
 Bad Debts
 Professional Services
 Insurance

 Loan payments
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 Total Cost of the Project
from Development to
Total Cost of Implementation
Project  Construction Cost
 Equipment purchase
 Raw materials
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 Loan from Bank
 Own Savings
Sources of
Financing  Loan from Family
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Profitability
Indices
Return on Investment
Formula
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Profitability
Indices
Payback Period
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Profitability
Indices
Net Income to Sales
Ratio
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Profitability
Indices
Break Even Point