THE BUSINESS PLAN

Without a plan, even the most brilliant business can get lost. You need to have goals, create
milestone and have a strategy in place to set yourself up for success.
-Yogi Berra
 Intended learning outcomes:

By the end of the learning experience, students must be

able to:
● outline the basic contents of a business plan;
● explain in brief the pertinent sections comprising the
business plan;
● demonstrate the basic skills of constructing pertinent
sections of the plan.
 Business Plan
Defined
Business Plan is a thorough and systematic
analysis of all factors that affect the
possibility of success of a proposed
undertaking. The business plan is a sort of
blueprint at it keeps the entrepreneur on the
right track. It also covers the aspects of
Marketing, Production, Management and
Finance
 Importance of
Business Plan
A business plan is a very important and strategic tool for
entrepreneurs. A good business plan not only helps
entrepreneurs focus on the specific steps necessary for
them to make business ideas succeed, but it also helps
them to achieve short-term and long-term objectives.

- Rich Longo of Small Business Development Center

Pennsylvania
 A business plan allows
you to communicate your
vision to others and
persuade them to help
you meet your goals.
Business plan allows you and your
team the ability to prioritize your
objectives, establish time lines and
tools to measure your success, and
find ways to reduce costs, change
marketing strategies or increase
profits.
A business plan helps guide
your company's efforts and,
if applicable, gives investors
and lenders the information
they need to decide whether
or not to fund your company.
A strong business plan also
can help you attract top-level
employees.
CONTINUATION…
A business plan gives
you clarity and plan
when things might get
heated otherwise.
A business plan will help
you identify what works
and what doesn’t, allowing
you to track your success
and adjust accordingly. 
 Purposes of a Business Plan

A business plan is written for two main purposes.

They are the following:

To serve as management’s guide during

1 the lifetime of the business.

To fulfill the requirement for securing

2 lenders and investors.
 The Business Planning
Business Planning is the critical activity that has to be undertaken by the
entrepreneur who wanted to succeed in his business endeavor. In general,
Business Planning is very significant:

1. Encourages systematic forecasting of the business activities ahead;

2. Enhances better coordination in the implementation of the business;
3. Provides for the necessary business measures as standards;
4. Sets up the necessary business goals and objectives;
5. Defines necessary alternatives for future developments
RATIONALE FOR THE BUSINESS
PLAN:
Business plan is prepared by entrepreneurs because of the following reasons:
1. Used for business decision-making
2. Anticipation of problems
3. Provides alternate courses of actions
 A Good Business Plan:

Entrepreneurs must bear in mind that when he/she prepares a business plan, the following considerations must be
emphasized:
• Ensures that all relevant questions are answered
• Organizes the business operation orderly and systematically
• Provides the general direction for the business venture
• Defines the target market and the necessary work volume required
• Defines the competition and its threats in the business venture
• Reduces the risk of failure caused by financial aspects of the business
• Sets the specific objectives of the business organization
• Defines the financial requirements, its estimated income, cash flow and balance
 PARTS OF A BUSINESS PLAN

01 02

Title Page - It includes the name of Executive Summary- It is a portion of the

the business, name of proponents, business plan that summarizes the plan and
address, telephone number, e-mail states the objectives of the business.
address
 PARTS OF A BUSINESS PLAN

03 04

Table of Contents - it will serve Introduction - It includes the

as an organized outline and background or overview of the
proposed business.
navigation system.
 Business Description - it includes a short
05 explanation of the industry.
PARTS OF A BUSINESS PLAN

In describing the industry, it is important to present the

current situation and the outlook for the future. Statements
about the following will be useful in describing the
business:

1. industry sector where the business falls into (retail,

manufacturing, service, education, etc.
2. whether the business is new or established
3. the ownership status of the business (sole
proprietorship, partnership, corporation)
4. information on who the customers are
5. information on the size of market
 PARTS OF A BUSINESS PLAN

Business Objectives -
states the short-term or long-
term objectives that the
business would like to attain.
06 08

Vision, Mission - state

07 Market Aspect-It includes product
the proposed vision and description, demand analysis, supply
mission statement. analysis, market share, selling price and
volume of sales.
 PARTS OF A BUSINESS PLAN

Organization and Management Aspect-It

includes the nature of the business, corporate profile,
officers and key personnel, pre-operating activities,
and pre-operating costs.
09

Production Aspect- It includes 10

sources and costs of raw materials, labor,
overhead expenses, fixed assets, waste
disposal and production costing.
PARTS OF A BUSINESS PLAN
11
Financial Aspect- includes the
financial assumptions projected
income statement, projected cash
flow statement and projected
balance sheet.
12
Appendices - is the section that
includes all the supporting
documents that will substantiate,
clarify and help your readers
visualize points that you make in
your business plan.
 Definition of the Business:
1. Business Title- chose of the business name and brief explanation of reason
2. Business Type- legal description of the business classification
3. Business Location- definition of the business address
4. Business Status- defining the nature of business plan
5. Business Description- brief description of the mode of operation of the business
6. Type of ownership- defining business by legal entity
7. Business Owner’s Profile- personal information of the investors
8. Business Objectives- definition of the organization’s goals
9. Financial Scheme- defining amount and sources of required capital
10. Summary of Business Feasibility:
a. Marketing Aspects
b. Production Aspects
c. Management Aspects
d. Financial Aspect
 
THANK
YOU!
 PRESENTORS

BADRUDIN, Farhana M. BANIAGA, Zainab W.

BARAACAL, Faidah D. BASAL, Henry II M.

JUPITER
BELTRAN, Loren Rose B. BERMUDEZ,
BERMUDEZ, Shaira
Shaira S.
S.

CABES, Merry Carl Q.

 REFERENCES

● Medina, R. (2014), Entrepreneurship and Small Business. Manila: Rex Bookstore.

 
● Trainor’s Training on Entrepreneurship Development. (2000). Industrial Technology
Foundation Inc.