*Entrepreneurial

Business Planning
*Learning Objectives:
Understand
the importance of planning in effective
management
Know the importance and uses of the business plan.
Understand the contexts of a business plan.
Be able to prepare a business plan.
*Planning
the fundamental management function, which
involves deciding beforehand, what is to be done, when is it
to be done, how it is to be done and who is going to do it.

Figure 1. Characteristics of Planning

 PLAN

 STRATEGIZE

 ESTABLISH

 GOAL & OBJECTIVES

BUSINESS PLAN
* What is a business plan?
a written document that describes in detail how a business — usually
a start-up — defines its objectives and how it is to go about achieving
its goals. A business plan lays out a written roadmap for the firm from
each of a marketing, financial, and operational standpoint.

“overall vision of your long-term goals”

* Writing the Business Plan

― main body is usually 30-40 pages
― Two-page executive summary is needed
― it must also contain the purpose of the plan
― Must be well written or properly structured/presented.
* Purpose of the Plan
Five general purpose of uniting a business plan:

• Obtain Finances
• Determine Resources Needed
― Determine Existing Resources
― Identify Resource Needs
― Determine Suppliers of Needed Resources
― Develop Approach to Suppliers of Needed
Resources
• Establish Direction for Firm
• Evaluate Results of Firms
― Management by Deviation
― Reporting Results to Stakeholders
• Obtain a Joint Venture Partner
* Benefits of a Business Plan

 Determines the amount and timing of resources needed.

 Establishes the direction of the firm.
 Guides and Evaluates
* Elements of a Business Plan
Grouped into three main general sections

Section 1: Title Page

Table of Contents
Executive Summary
Section 2: 1.0 Description of Business
2.0 Description of Industry
3.0 Technology Plan
4.0 Marketing Plan
5.0 Financial Plan
6.0 Production (Outsourcing) Plan
7.0 Organizational Plan
8.0 Operational Plan
9.0 Summary

Section 3: Appendices (exhibits)

* Section 1
 Title Page – an important part of every business
plan

• company name, address, telephone, fax, e-mail

address, and website
• Name and position of each identified member of
the management team
• The purpose of the plan, the amount of money
needed, and funding increments

 Table of Contents – self-explanatory

 Executive Summary – most important document in
the business plan; “SCREENING SECTION”.
* Section 2
 Description of the Business
• Description of the Venture
• Product(s) and/or Service(s)
• Type of Industry
• Mission Statement
• Business Model

 Description of Industry
• Future outlook and Trends
• Analysis of Competitors
• Industry and Market Forecasts

• Technology Plan
• Description of Technology
• Technology Comparison
• Commercialization Requirements
 Marketing Plan
• Market Segment
• Product or Service
• Pricing
• Distribution
• Promotion

 Financial Plan
• Sources and Applications of Funds Statement
• Pro Forma Income Statement
• Pro Forma Cash Flow Statements
• Pro Forma Balance Sheet
• Break – even Analysis
 Production (outsourcing) Plan
• Manufacturing Process ( Amount Subcontracted)
• Physical Plant
• Machinery and Equipment
• Suppliers of Raw Materials
• Outsourcing Aspects

 Organizational Plan
• Description of Company’s Operation
• Flow of Orders and Goods
• Exit Strategy

 Summary – brief summary that completes the section 2 of a

business plan
* Section 3
Contains all the backup material to support areas in Section 2.

•Secondary support data

•Any research data
•Contracts or leases
•The patent document
•Resumes of the entrepreneur and any known
members of the management team

Every venture needs a business plan to set the direction for the firm
and/or to obtain financial resources. It must be well written and
organized, consistent without errors to have a clear understanding to
achieve future success of the new venture.
“Unless commitment is made, there are only
promises and hopes, but no plans.”
-Peter F. Drucker

Thank you!
Prepared and Presented by:
ANJIEUANA A. SELLE
ALIAZA MAE P. CABALHIN