Business Enterprise Simulation

Lesson 1: Concept of Business Plan

Learning Competencies: Scan the market and identify
potential business opportunities to capitalize on
 Business Plan
• is a formal written document containing the goals
of a business,
the methods for attaining those goals, and the
timeframe for the achievement of the
goals.
• This is where you bring the vision of having your
own business to life.
Business plans are like road maps: it’s possible to travel
without one, but it will only increase the like hood of
getting lost along the way.

A well-written business plan is an important tool

because it gives entrepreneurs the ability to lay out
their goals and track their progress as their business
begins to grow.
• helps to articulate a strategy for starting a
business,
• provides insight on steps to be taken,
• resources required for achieving a business goal
and a timeline of anticipated results.
• attract investors and determine if the business is
on the right path and worth putting money into.
• A business idea is a plan, suggestion, or possible
course of action.
Reasons why you should generate business ideas are…
(Know about Business Manu et al.2005)

1.to respond to market needs

2.to respond to changing fashions and requirements
3.to stay ahead of the competition
4.to exploit technology-do things better
5. because of product life cycle
6.tospread risk and allow for failure
 Sources of Business Ideas
Sources of Business Ideas
1. Hobbies/interests
2. Personal skills and Experience
3. Franchises
4.Mass media (newspapers, magazines, TV, and internet)
5. Exhibitions
6. Surveys
7. Complaints
8. Brainstorming
9. Creativity
 What do you need to create a business plan?
1. Creativity is the ability to design, form, make or
do something in a new different way, and to be
creative you need to keep your mind and eyes open.
2. Brainstorming is a technique for creative
problem solving as well as for generating ideas. The
objective is to come up with as many ideas as possible.
It is usually starting with a question or problem
statement. Each idea leads to one or more additional
ideas, resulting in a good number.
Activity 1

Directions: Answer the following questions.

1. What is the purpose of a business plan?

2. Why planning is an important step in starting a
business?
3. What makes an effective business plan?
 FOUR RULES:
1. Don’t criticize or judge the ideas of others.
2. Freewheeling is encouraged-ideas that seem to be
wild or crazy are welcome.
3. Quantity is desirable-the greater the number of
ideas, the better.
4. Combine and improve upon the ideas of others.
Quiz: Essay

Directions: Imagine that you are opening a business.

Think of a name of your own business.
Guide Questions
1. Why did you choose that name for your business?
2. What makes your business name unique?
3. How will your business name encourage client?
4. What sale tactics will you use in promoting your
business?
5. How will you promote your business?