ENTREPRENEURSHIP

SUBJECT TEACHER: MS. GILDA M. BASSIG

LESSON 2: BASIC CONCEPTS OF BUSINESS PLAN
 At the end of the lesson, the students will be able to:

1. Define a business plan.

2. Identify key elements of a business plan.
3. Identify the different parts of a business plan.
4. Identify the different kinds of business plan.
5. Write a sample business plan.
What is Business plan?
A business plan is a summary document that
outlines how and why a new business is being
created. New entrepreneurial ventures must
prepare formal written documents to outline their
long-term objectives and the means to be
employed to reach said objectives. The business
plan underlines the strategies that need to be
adopted in order to reach organizational goals,
identify potential problems, and devise custom
solutions for them.
Purposes of a business plan
 Presents a general picture of the enterprise. It serves as
guide in business policy formulation. For starters, what
will the business be? What goods can be sold? Who will
manage the business?
 Providesguidance for investment decisions and capital
expenditures. What will be the business like? What kind
of business will be established? Where would the raw
materials come from? In your case, will you be needing a
start-up capital? Can you look for readily made resources
that you can sell to your market?
 Servesas guide in the implementation of the plan for
business including the marketing, production,
organizational and financial aspects of the enterprise.
You will need to identify key people involved in your
business. A blueprint of the all aforementioned aspects
have to be clearly defined.
 Servesas selling tool for encouraging investment and
financing. You are making a business plan to make your
business a success. Planning is the first step to make it
successful as you will know the steps to take.
Essential questions that have to be answered
when making a business plan
 Who are the customer of the enterprise? How will the enterprise
sell its products or service to them?
 What niche will it address?
 What is the size of the market to be served?
 What problem does the product or service solve? What need
does it fill?
 How will the business make money (Revenue – Cost = Profit?
 Whatother products pose competition to the business
and how will the enterprise maintain its competitive
advantage?
 Howwill the enterprise adjust its systems of
management as the business grows?
 Whowill run the company and what are their
capabilities to manage the business?
 Whatare the risks and threats confronting the business
and what are the resources needed?
 What will be the future financial requirement of your
business?
Parts of a business plan

 Executive summary – this contains

a brief description of each part of
the business plan. Despite being
short, the whole picture of the
proposed business must be clear
enough to catch the interest of a
potential venture capitalist or any
interested individual who will
finance the business.
 An introductory overview of your
business