Introduction to

BUSINESS PLAN
PREPARATION
Is a detailed and integrated written document that describes the various activities involved in
opening and operating a new entrepreneurial venture.
 a formal statement of business goals

What is
BUSINESS plan for reaching the goals

PLAN?

contains background information about

the organization attempting to reach this
goals
 Focus of Business Plan
Externally focused plans target goals that are
important to external stakeholders, particularly
financial stakeholders. They typically have detailed
information about the organization or team
attempting to reach goals.
Internally focused business plans target
intermediate goals required to reach the external
goals. They may cover the development of a new
product, a new service, a new IT system, a
restructuring of finance, or the refurbishing of a
factory.
Categories of Business Plan

MARKETING PLAN – PROJECT PLAN – BUSINESS PLAN FOR OPERATIONAL PLANS

BUSINESS PLAN TARGETS CHANGES IN
PERCEPTION AND
DESCRIBES THE GOALS
OF A [ARTICULAR
NON-PROFIT AND
GOVERNMENT
– DESCRIBES THE
GOALS OF AN
FOR PROFIT – BRANDING PROJECT AGENCY – TENDS TO
FOCUS ON SERVICE
INTERNAL
ORGANIZATION,
typically focuses on GOALS WORKING GROUP, OR
DEPARTMENT
financial goals
Categories of Business Plan

BUSINESS PLAN FOR MARKETING PLAN PROJECT PLAN – BUSINESS PLAN OPERATIONAL
PROFIT –typically focuses on DESCRIBES THE FOR NON-PROFIT PLANS – DESCRIBES
financial goals GOALS OF A AND GOVERNMENT THE GOALS OF AN
– targets changes in [ARTICULAR
PROJECT
AGENCY – TENDS TO
FOCUS ON SERVICE
INTERNAL
ORGANIZATION,
perception and GOALS WORKING GROUP,
OR DEPARTMENT
branding
Categories of Business Plan

BUSINESS PLAN FOR MARKETING PLAN BUSINESS PLAN OPERATIONAL

– targets changes in
PROFIT –typically focuses on
financial goals perception and branding PROJECT PLAN – FOR NON-PROFIT
AND GOVERNMENT
PLANS – DESCRIBES
THE GOALS OF AN
describes the goals AGENCY – TENDS TO
FOCUS ON SERVICE
INTERNAL
ORGANIZATION,
of a particular GOALS WORKING GROUP,
OR DEPARTMENT
project
 Categories of Business Plan

MARKETING PLAN
BUSINESS PLAN FOR
PROFIT –typically focuses – targets changes in
PROJECT PLAN – BUSINESS PLAN FOR OPERATIONAL
PLANS –
describes the goals of a
on financial goals perception and branding particular project NON-PROFIT AND DESCRIBES THE
GOALS OF AN
GOVERNMENT INTERNAL
AGENCY – tends to ORGANIZATION,
WORKING GROUP,
focus on service goals OR DEPARTMENT
 Categories of Business Plan

BUSINESS PLAN FOR MARKETING PLAN PROJECT PLAN – BUSINESS PLAN

PROFIT –typically focuses – targets changes in
on financial goals
perception and
describes the goals of a
particular project
FOR NON-PROFIT
AND GOVERNMENT OPERATIONAL
branding AGENCY – tends to
focus on service goals
PLANS – describes the
goals of an internal
organization, working
group, or department
 Categories of Business Plan

BUSINESS PLAN FOR MARKETING PLAN PROJECT PLAN – describes the BUSINESS PLAN FOR OPERATIONAL PLANS –
PROFIT –typically focuses on – targets changes in goals of a particular project NON-PROFIT AND describes the goals of an
financial goals perception and branding GOVERNMENT AGENCY internal organization,
– tends to focus on service working group, or
goals department
Contents of Business Plan

Executive Summary
Project Background and History
It provides a concise overview of the
Details the project conceptualization, study
project's feasibility, highlighting key
events, proponents, proposed name, business
findings and focusing on the study's
type, and location, along with the project's type
conclusion.
and location.
 Management and Personnel Feasibility
Outlines the project's market feasibility, analyzes
past, pres/” ent, and future demand and supply
situations for a product, examines competitors'
marketing practices, and provides sales projections
and marketing system design.
Production Feasibility
The manufacturing plan details the product's
production, capacity, layout, machinery, raw
materials, manpower, civil engineering,
utilities, waste management, and
documentation of the production system,
including waste management methods and
project utilities.
Contents of Business Plan

 Financial Feasibility
Entrepreneur determines project capitalization and financiers,
determining the most adaptable financing scheme based on
financiers' terms and conditions of repayment.
The business plan's financial soundness is assessed through
assumptions, projections, financial statements, and analysis
using ratios, break-even points, sensitivity analysis, project rate
of return, and payback period.

Socio Economic Feasibility
Examines the project's feasibility from
the perspective of its proponents or
investors, focusing on its potential
benefits to others and entities.
Project Implementation and Timetable
The project's pre-investment and pre-operating phase
involves detailed activities and timetables, sometimes
included in Management and Personnel Feasibility to
differentiate between pre-operating and normal operating
activities.
 1. To help you with critical decisions.
2. To iron out the kinks.

10 Reasons Why 3. To avoid the big mistakes.

To prove the viability of the business.
You Need to 4.

5. To set better objectives and benchmarks.

Prepare a 6. To communicate objectives and benchmarks.
Business Plan 7. To provide a guide for service providers.
for Small 8. To secure financing.
Business 9. To better understand the broader landscape.
10. To reduce risk.
 A feasibility plan is a comprehensive study or
document that assesses the viability and
practicality of a proposed project, business
venture, or initiative. It typically includes an
analysis of various factors such as financial,
What is
technical, operational, legal, and market-related
aspects to determine if the project is feasible and
Feasibility
worth pursuing. The goal of a feasibility plan is to Plan?
provide decision-makers with the necessary
information to make informed choices about whether
to proceed with a particular endeavor or not.
FEASIBILITY STUDY CHECKLIST

Who else is
Is there a demand What is needed to
producing similar
for the product? make the product?
product?

What is the cost of

What is likely
producing a
profit?
product?
 Feasibility
\ Plan vs. Business Plan

Feasibility Plan PBusiness Plan

P
A. Is conducted before a L Prepared after a
L A.
decision to proceed decision to proceed
A
A B. Provides a planning
B. Provides an
investigative function NNfunction