Business Plan: Start-Up

Guide (Part1)
HOME-BASED
BUSINESS
INTRODUCTION
SECTION 1:
BUSINESS SUMMARY
 BUSINESS CONCEPT
 An idea for a business that includes basic information such as the
service or product, the target demographic, and a unique selling
proposition that gives a company an advantage over competitors.
 A business concept may involve a new product or simply a novel
approach to marketing or delivering an existing product.
 HOME-BASED IS OUR BRANDING BUSINESS
 Define…
 Proponents perspective..
 5 W’s and 1 H…
 BUSINESS PROPONENT
 The Business Proponents: Organizers with their
Capabilities and Contributions.
 The proponents of the business are the ten (10) members
of the group that can be considered as student
entrepreneurs.
 Each of them has something to contribute and they can be
divided based on their capabilities, skills, and interests.
MISSION

 A sentence describing a company's function, markets and competitive advantages;

 a short written statement of your business goals and

philosophies.
 A mission statement defines what an organization is,
why it exists, its reason for being.
 VISION
 Create a business vision.

 A vision is a vivid mental image of what you want

your business to be at some point in the future, based on
your goals and aspirations. ...
 A vision statement captures, in writing, the essence of
where you want to take your business, and can inspire
you and your staff to reach your goals.
BUSINESS NAME/TITLE
BUSINESS LOGO AND TAGLINE
 A tagline is a signature phrase that differentiates your brand.
 At its best, a tagline clarifies what you do, summarizes your value
proposition, or defines your business ethos.
 Not only are they memorable, but the most effective taglines are
pleasant to hear and repeat.

 A recognizable graphic design element, often including a name,

symbol or trademark, representing an organization or product.
 Before you start thinking about designing a business card or picking
colors for your letterhead, you need a logo.
SECTION 2:
BUSINESS AND ITS MANAGEMENT
HISTORY AND POSITION TO DATE
 What to Include in Your Company Background
 Here are a few key points that you should be sure to include in the business background
section of your business plan:
 The origin of the idea for the business
 The market opportunity you're pursuing (and why)
 Your progress to date, including any relevant key milestones
 Problems you’ve faced so far (and how you've overcome them)
 Short-term growth plans
 If you have any experience already working with customers to solve their challenges—or
you've used the basis for your business idea to get some level of results for yourself, then
highlight those figures in your business background section to showcase how what you're
doing does indeed work.
5 YEAR STRATEGIC BUSINESS PLAN
 In this section of your strategic plan, you will identify the wants
and needs of each of your target customer groups.
 This is important in focusing your marketing efforts and getting a
higher return on investment on your advertising expenditures.
 This is because the more you can “speak” directly to your target
customer wants and needs in your marketing, the better you will
attract them.
LEGAL STRUCTURE

 The most common forms of business are the sole

proprietorship, partnership, corporation, and S
corporation.
 A Limited Liability Company (LLC) is a business
structure allowed by state statute. 
 Legal and tax considerations enter into selecting
a business structure.
MANAGEMENT TEAM

 The management team is the group of individuals that

operate at the higher levels of an organization and have
day-to-day responsibility for managing other individuals
and maintaining responsibility for key business functions.
SECTION 3:
BUSINESS PRODUCTION AND SERVICES
PRODUCT AND SERVICES

 The product and services section of your business plan format discusses

your product or service, why they're needed by your market, and how they compete with
other businesses selling the same or similar products and services.
 This is the part of your business plan where you will describe the
specific products or services you’re going to offer. You’ll fully
explain the concept for your business, along with all aspects of
purchasing, manufacturing, packaging, and distribution. You’ll go
over suppliers, costs, and how what you’re offering fits into the
current market and stacks up against your competitors.
PRODUCT PORTFOLIO

 A product portfolio is the collection of all the products or services offered by

a company. Product portfolio analysis can provide nuanced views on stock
type, company growth prospects, profit margin drivers, income contributions, market
leadership, and operational risk.
 Product Portfolio can be defined as the compilation of products and
services offered by the company to the target market. It comprises
of all the set of products offered right from the ones that were
launched and offered during the inception of the brand to the ones
that are launched currently along with ones that are in the pipeline.
PRODUCTION PROCESS

 Production is a process of combining various material inputs and immaterial inputs

(plans, know-how) in order to make something for consumption (output). It is the act of
creating an output, a good or service which has value and contributes to the utility of
individuals.

 Forms used to determine the amount of food to serve for

menu production. ... Purpose: To learn the steps for
determining the amount of food to serve for one meal. ...
PRODUCT COSTING
 Product cost refers to the costs incurred to create a product. These costs include direct
labor, direct materials, consumable production supplies, and factory overhead. Product
cost can also be considered the cost of the labor required to deliver a service to a customer.
 Example of Product Costs
 Company A is a manufacturer of tables. Its product costs can include:
 Direct material: The cost of wood used to create the tables.
 Direct labor: The cost of wages and benefits for the carpenters to create the
tables.
 Manufacturing overhead (indirect material): The cost of nails used to hold the
tables together.
 Manufacturing overhead (indirect labor): The cost of wages and benefits for
the security guards to overlook the manufacturing facility
 Manufacturing overhead (other): The cost of factory rent and cost of factory
utilities.
SECTION 4:
BUSINESS MARKETING AND
COMPETITORS
MARKETS AND PROJECTIONS

 A component of marketing analysis that provides

anticipated figures and calculations based
upon market research.
 The forecast may include projections for a product type,
company, sector, industry, demographic type or overall
population.
COMPETITION AND COMPETITIVE EDGE

 competitive edge by finding different ways of being unique in the marketplace. By

differentiating your product, service, personnel or brand, you can establish a unique
position in your market.
 ... The
following strategies can help to distinguish your
offering in the market and create a competitive edge.
CUSTOMER SEGMENTATION

 Customer segmentation is the practice of dividing a customer base into groups of

individuals that are similar in specific ways relevant to marketing, such as age, gender,
interests and spending habits.
 The process of dividing customers into groups based on common characteristics so
companies can market to each group effectively and appropriately.
 In business-to-business marketing, a company might segment customers according to a
wide range of factors, including: Industry. Number of employees.
PRICING POLICIES

  a pricing policy is a standing answer to recurring question.

 A systematic approach to pricing requires the decision that an
individual pricing situation be generalized and codified into
a policy coverage of all the principal pricing problems.
PRICING OF CORE PRODUCT

 Low price are offered for the core product, but high prices are

placed on captive products.
 This attracts customers to the core product with a low price but
allows sellers to make a profit off the captive products, which are
necessary to use the product.
PROMOTIONAL PLAN

 The Promotional Planning is a process of optimizing the

utilization of marketing tools, strategies, resources to
promote a product and service with the intent to generate
demand and meet the set objectives.
 A promotional plan contains a detailed strategy for
expanding your business or marketing a particular
product. You have to take several factors into account ...
OPERATIONS

 A distribution channel is a chain of businesses or intermediaries

through which a good or service passes until it reaches the final
buyer or the end consumer. 
 Distribution channels can include wholesalers, retailers,
distributors, and even the Internet.
SUPPLY CHAIN MANAGEMENT

 Supply chain management is the management of the flow of goods and services and
includes all processes that transform raw materials into final products.
 It involves the active streamlining of a business's supply-side activities to maximize
customer value and gain a competitive advantage in the marketplace.
 A supply chain is comprised of all the businesses and individual contributors involved in
creating a product, from raw materials to finished merchandise. ... Examples of supply
chain activities include farming, refining, design, manufacturing, packaging, and
transportation.
SECTION 5:
TECHNICAL OPERATIONS
MATERIALS AND EQUIPMENT
EMPLOYEE UNIFORM
HOME-BASED PLAN - FEATURES
PRODUCT PACKAGING
SECTION 6:
FORECAST & FINANCIAL DATA
INCOME STATEMENT FOR 5 YEARS

 An income statement is one of the three important financial statements used for reporting

a company's financial performance over a specific accounting period, with the other two
key statements being the balance sheet and the statement of cash flows.
 The Income Statement is one of a company's core
financial statements that shows their profit and loss. The
P&L statement shows a company's ability to generate sales,
manage expenses, and create profits. over a period of time.
BALANCE SHEET

 a statement of the assets, liabilities, and capital of a business or other organization at a

particular point in time, detailing the balance of income and expenditure over the
preceding period.
 The balance sheet is a report that summarizes all of an entity's
assets, liabilities, and equity as of a given point in time. ... Typical
line items included in the balance sheet (by general category) are:
Assets: Cash, marketable securities, prepaid expenses, accounts
receivable, inventory, and fixed assets
CASH FLOW

 The total amount of money being transferred into and out of a business, especially as
affecting liquidity.
 Use the cash flow statement and balance sheet to obtain cash
flow from operations by adding net income, depreciation and
amortization together with income from other sources or charges,
then subtract the net increase in working capital (current assets
minus current liabilities).
FINANCING REQUIREMENT

 To use parametric estimating, first divide a project into units of work. Then, you
must determine the cost per unit, and then multiply the number of units by the cost per
unit to estimate the total cost.

 Actual or projected sum of money required to execute a

plan, project, or program.
END…

GD LUCK!!!