Entrepreneurship

What is a business plan

for?
 Entrepreneur who plans to enter any business
endeavor must have a business plan on hand to guide
them throughout the process.
 They need to convey the capabilities and
competencies of their owners and managers.
 They must also be able to ‘sell’ the proponent and the
business proposition to this audience.
Clearly, a business plan serves many
masters.
First, it serves the entrepreneur who must set
a navigational course.
Second, it serves investors and cautious
financiers.
And third, it serves the managers and staff of
the organization so that they will know the
strategies and programs of the enterprise.
 The following are the
components found in a
Business Plan.
Introduction - this part discusses what is the
business plan all about. 
Executive Summary - is part of the business plan
which is the first to be presented but the last to be
made.
Management Section - shows how you will manage
your business and the people you need to help you in
your operations.
Marketing Section - shows the design of your
product/service; pricing, where you will sell and how
Financial Section - shows the money needed for the
business, how much you will take in and how much
you will pay out.
Production Section - shows the area, equipment and
materials needed for the business.
Competitive Analysis - is the strategy where you
identify major competitors and research their
products, sales and marketing strategies.
Market – refers to the persons who will buy the
product or services
Organizational chart - is the diagram showing
graphically the relation of one official to another, or
 CONTENTS OF THE BUSINESS
PLAN
THE BUSINESS CONCEPT AND THE BUSINESS MODEL

A business concept contains the

essence of the enterprise in a concise
but powerful manner.
It stresses the value of the product
offering to the target customers who
would most likely buy it.
 There are four areas of
moneymaking which the business
model must address:
How will the business raise revenues? What critical factors
will cause the revenues to materialize?
What will be the costs of the enterprise products and other
costs of doing business? How will these costs be managed
to ensure comfortable profits? What critical factors will
drive the costs? How can these factors be controlled?
What will be the major investments of the enterprise? Why
will these investments give the enterprise a competitive
edge?
How will the enterprise finance the investments? How will
the enterprise fund its growth?
The Business Goals
Vision
Mission
Objectives
Performance Targets
The Business Goals are communicated by
articulating the basic purpose of setting up the
enterprise in a mission statement. Needless to
say, all business enterprises are established for
the purpose of making money for its investors.
The vision and the mission statements must
then be translated into measurable end results,
more popularly called objectives.
Objectives must be more specific than the
vision and mission statements. They should be
measurable, achievable, and time-bound.
 THE EXECUTIVE SUMMARY
It must contain the major argumentations
of the business proponent on why the
business will work and succeed.
It should provide the business plan
audience all the arguments on why they
should participate in the business
venture.
The executive summary should then
introduce and highlight the good
qualities of:
The business proponents and their
partners
The enterprise organization and its
capabilities
The technology providers and their
expertise and experience
Executive Summary should then proceed
to discuss and justify the Enterprise
Strategy and Enterprise Delivery System.
Enterprise Strategy builds and develops
the game plan for attaining
competitiveness.
 Enterprise Delivery System is the entire
process of converting input (resources) into
output and these outputs into outcomes.
Activity 3. Picture Analysis. Analyze the picture
below then answer the corresponding guide
questions.
Guide Question:
 What appropriate product and/or
business that can be
conceptualized during this COVID
-19 pandemic? Write as many in
bullet form in a yellow paper.
ENTREPRENEURS
HIP
 THE BUSINESS PROPONENTS
The third section of the business plan contains
information about the business proponents or
stakeholders. There are four types of
stakeholders:
Resource mobilizers and financial backers
Technology providers and applicators
Governance and top management
Operating and support team
 THE TARGET CUSTOMERS AND THE MAIN VALUE PROPOSITION

The fourth section of the business plan

is the Target Customers and the Main
Values Proposition.
 Target Customers must be of sufficient
size, sufficient paying capacity, and have
sufficient interest to purchase the
products being offered by the enterprise.
 MARKET DEMAND AND SUPPLY, INDUSTRY DYNAMICS, AND MACRO
ENVIRONMENTAL FACTORS

The fifth section of the business plan is

the market demand and supply, the
industry dynamics, and the macro
environmental forces affecting the
business of the enterprise.
 The business plan should estimate the
total market supply and demand for the
product offerings of the enterprise.
The business plan should discuss the major trends
and changing patterns in the macro-environment,
which would have significant impacts on the
relevant industry and the behavior of consumers.
Social environment – includes the demographics
and cultural dimensions that govern the relevant
entrepreneurial behavior.
Political environment – defines the governance
system of the country or the local area of business.
It includes all the laws, rules, and regulations on
allowable and disallowable business forces.
Economic environment – is mainly driven by
supply and demand forces. It is the same factor that
drives the interest and foreign exchange rates to
fluctuate with the movement of the market forces.
Ecological environment – includes all natural
resources and the ecosystem that defines the habitat
of man, animals, plants, and minerals.
Technological environment – makes or breaks
competing participants in any industry. New
scientific and technological discoveries often lead
to the launch and commercialization of new
products with superior attributes or to rendering the
old ones obsolete.
 PRODUCT/SERVICE OFFERING: DESCRIPTION, EVOLUTION, AND JUSTIFICATION

The sixth section of the business plan is

the product/service offerings that should
contain a description, evolution, and
justification of the product/service
offerings.
 The business plan should also prove that
the products/services would be accepted
and carried by the distribution channels.
 ENTERPRISE STRATEGY AND
ENTERPRISE DELIVERY SYSTEM
The business plan should expound on the
Enterprise Strategy (ES) by mapping the
competitive landscape and by situating the
enterprise and its competitors as to their
strategies and chosen positioning.
 Input Throughput Output Marketing Desired
outcomes
• Harnessing of  conversion  goods  positioni  customer
human, money of input produce ng satisfied
and physical into output d or  product  sales
resources and the services  packagin volume
• Resources transforma delivere g attained
mobilized tion d  place  profits
• Money process  people generate
• Men within the  promotio  people
• Machines factory or n performan
• Materials service  price ce
• Methods shop
• management
FINANCIAL FORECASTS: EXPECTED RETURNS, RISKS, AND CONTINGENCIES

The eight section of the business plan

is the financial forecast including the
financial returns, the financial risks,
and the financial contingencies.
 ENVIRONMENTAL AND
REGULATORY COMPLIANCE
The ninth part of the business plan is
composed of the environmental and
regulatory compliance. The business
plan must articulate the laws, rules,
and regulations governing the
business, and the industry that the
enterprise is in.
CAPITAL STRUCTURE AND FINANCIAL OFFERING: RETURNS
AND BENEFITS TO INVESTORS, FINANCIERS, AND PARTNERS

The tenth section of the business plan

contains the capital structure and financial
offerings of the enterprise including some
discussions on who are the investors, the
financiers, and the partners of the
enterprise.