Business Plan Workbook

Section 1
EXECUTIVE SUMMARY

1.1 Name Of Business

1.2 Business Address

1.3 Nature Of Business

1.4 Form Of Business

1.5 Name Of Owner(s)

1.6 Brief Description Of Business

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1.7 Objectives

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Section 2
MARKETING PLAN

2.1 Description of the Product

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2.2 Comparison of the Product with Its Competitors

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Table 2.2 Competitive Analysis of Product

Proposed Competito Competito Competitor

Features
Business r1 r2 3
Product quality: Length

Width/Design

Color

Weight

Price

Delivery lead time

Brand name

Multiple use

Taste

Material make up

Rating: 1 - Outstanding; 2 - Very satisfactory; 3 - Good; 4 - Fair; 5- Poor

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2.3 Store Location

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Figure 2.3 Location Map (Draw on a separate sheet of paper)

2.4 Market Area

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Table 2.4 List of Market Areas and Size of Market

Barangay /Locality No. of Households Population

2.5 Main Customers

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Table 2.5 List of Major Customers and their Requirements

2.6 Total Demand

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Table 2.6 Table of Projected Demand
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Year Quantity Amount ( Pesos)

2.7 Total Supply

Table 2.7 Table of Projected Supply & Sources of Supply

Supplier Year Quantity Amount

(Pesos)

2.8 Market Share

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Gap Analysis
Year Market Requirement Available Supply GAP

2.9 Selling Price

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Table 2.9 Comparison of Competitors’ Selling Prices

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Project’s Project’s Prices of Competitors Competitor’s

Product(s) Selling Average
Price Competitor Competitor Competitor Price
1 2 3

2.10 Sales Forecast

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Table 2.10 Projected Sales by Year, Sales Volume and Amount

Year Sales Volume (Units) Sales Amount (Pesos))

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2.11 Promotional Measures

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2.12 Marketing Strategy

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Table 2.12 Table of Competitor’s Marketing Strategy

Competitor Product Price Distribution Promotion

2.13 Marketing Budget

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Table 2.13 Marketing Budget

Item

Projected Sales

Marketing Expenses:

Promotion
(Specify)

Distribution
(Specify)

Advertising
(Specify)

Selling
(Specify)

Total Marketing Expenses

Marketing Expenses over Sales (%)

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Section 3
PRODUCTION PLAN
PPPPPPPPPLPLAN
3.1 Production Process
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Figure 3.1.1 Process Flow Chart (Draw on a separate sheet of paper)

3.2 Fixed Assets

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3.3 Life of Fixed Assets

Table 3.3 Schedule of Useful Life and Depreciation Rate

Machines, Tools & Fixtures Cost Useful Life Depreciation Rate

3.4 Maintenance and Repairs

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Table 3.2.1 List of Machinery, Number, Specifications and Purpose

Machines, Tools & Fixtures Number Specifications Purpose

Table 3.2.2 List of Machinery, Suppliers and Price

Price per No. of Total

Machines, Tools & Fixtures Suppliers Terms of Purchase
Unit Units Cost
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3.5 Sources of Equipment

Table 3.5.1 List of Equipment and Suppliers

Suppliers
Machines, Tools & Fixtures

3.6 Planned Capacity

Projected Production Volume by year

Year Volume

3.7 Future Capacity

3.8 Terms and Conditions of Purchase of Equipment

3.9 Plant Location and Layout

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Figure 3.9.1 Plant Location Figure 3.9.2 Plant Layout

(Draw on a separate sheet of paper) (Draw on a separate sheet of paper)

3.10 Raw Materials Needed

3.11 Cost of Raw Materials

Table 3.11 List of Materials, Quantity Needed and Cost

Unit Price Quantity Total

Raw Materials Remarks
of Materials Needed Cost

A. Direct Materials

B. Indirect Materials

Total Material Cost

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3.12 Raw Materials Availability

Table 3.12 List of Raw Materials, Sources and Price

Type of Materials Suppliers Unit Price

3.13 Labor

Table 3.13 Job Position, Qualifications and Experience of Direct and Indirect Labor
(See page 14)

3.14 Cost of Labor

Table 3.14 Job Position, Number and Cost (See page 15)

3.15 Labor Availability

3.16 Labor Productivity

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3.17 Factory Overhead Expenses

Table 3.17 Overhead Items and Cost (See page 16)

3.18 Production Cost

Table 3.18 List of Direct Materials Used, Direct Labor Employed and Factory
Overhead – Total and Unit Cost (See page 13 )
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Table 3.13.1 Job Position, Qualifications and Experience of Direct Labor

Direct Labor
Qualifications Experience
Job Title of Worker

Table 3.13.2 Job Position, Qualifications and Experience of Indirect Labor

Indirect Labor
Qualifications Experience
Job Title of Worker
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Table 3.14.1 Labor Cost

Year Type of Labor No. of Workers Total Salary per Total Fringe Benefits per Total Labor Cost per Year
Month Month

Direct labor
1 Indirect Labor
Total
Direct labor
2 Indirect Labor
Total
Direct labor
3 Indirect Labor
Total
Direct labor
4 Indirect Labor
Total

Table 3.14.2 Direct Labor Cost

Production Time per Product Unit Direct Labor Cost per Product Unit
Product Direct Labor Rate
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Table 3.17 Factory Overhead Expenses

Year
Overhead Item
1 2 3 4 5

Total Factory Overhead Per Year

\

Factory Overhead per product unit

Table 3.18 Production Cost

Direct Direct Factory

Planned Total Cost
Materials Labor Overhead
Production
Product
Volume Per unit Total Per unit Total Per unit Total Per unit Total
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Section 4
ORGANIZATION & MANAGEMENT PLAN

4.1 Form of Business

4.2 Organizational Structure

Figure 4.2 Organization Chart (Draw on a separate sheet of paper)

4.3 Business Experience(s) and Qualifications of the Entrepreneur(s)

Annex: Entrepreneur’s Bio-data

4.4 Pre-operating Activities

Figure 4.4 Gantt Chart

Pre-Operating Activities
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Timetable (In ________)

Activities
1 2 3 4 5 6 7 8 9 1 1 1 1 1 1 1 1 1
0 1 2 3 4 5 6 7 8

1.

2.

3.

4.

5.

6.

7.

8.

9.

4.5 Pre-operating Expenses

Table 4.5 Pre-Operating Expenses

Pre-Operating Expenses Amount

4.6 Office Fixed Assets and Equipment

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Table 4.6 List of Office Fixed Assets and Equipment, Number Required, Cost
and Depreciation Rate

Item Number Cost Depreciation Rate

4.7 Administrative Expenses

Table 4.7 Position Items and Wage/Salary

Position Item Wage/Salary

Section 5
FINANCIAL PLAN

5.1 Capital Requirement (Project Cost)

Table 5.1 Capital Requirement (See page 21)

5.2 Financing Plan and Loan Requirement

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Table 5.2 Financing Plan (See page 22)

5.3 Security for Loan

Table 5.3 Particulars of Collateral Offered

Total Value of Security

* Specify whether purchase, book or market value.

Table 5.1 Capital Requirement

Amount (Pesos)
Investment Item Percent
1. Fixed Assets

1.1

1.2

1.3

1.4

1.5

1.6

1.7

Sub-total

2. Pre-operating Expenses

2.1

2.2

2.3
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Sub-total

3. Working Capital

3.1

3.2

3.3

3.4

3.5

3.6

Sub-total

Total

Table 5.2 Financing Plan

Sources
Items Cost Bank Loan Equity Other Total
Creditors

1. Fixed Assets

1.1 Land
1.2 Building
1.3 Machinery
1.4 Vehicles
1.5 Furniture
1.6 Office
Equipment
1.7 Others

2. Pre-Operating
Expenses

4. Working Capital

3.1 Raw
Materials
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3.2 Work in
Process

3.3 Finished
Goods

3.4 Accounts
Receivable

3.5 Permanent
Working
Capital

Total (Pesos)

Total (%)

5.4 Profit and Loss Statement

Table 5.4 Projected Profit and Loss Statement (See page 24)

5.5 Cash Flow Statement

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Table 5.5.1 & 5.5.2 Projected Cash Flow Statement (See pp.28-29; monthly/annual).

5.6 Balance Sheet

Table 5.6 Projected Balance Sheet (See page 30).

Profit and Loss Statement

(For the Year Ended December 31, _________)

Gross Sales P ____________

Less: Returns and Allowances ____________

Net Sales

Less: Cost of Goods Sold ____________

Direct Materials ____________

Direct Labor ____________

Factory Overhead ____________

Gross Profit ____________
Less: Administrative and Selling Expenses ____________
Operating Profit ____________

Less: Interest Expense ____________

Net Profit before Tax ____________

Less: Estimated Income Tax ____________
Net Profit After Tax P
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Cost of Goods Sold for Manufacturing

1. Direct Materials

1.1 Beginning Inventory

1.2 Add: Purchases
1.3 Cost of materials available
1.4 Less: Ending inventory
1.5 Total cost of materials used for production

2. Direct Labor

3. Factory Overhead

3.1 Depreciation
3.2 Rental
3.3 Indirect labor
3.4 Maintenance and repair
3.5 Indirect materials (e.g. packaging mat., oil)
3.6 Utilities (e.g. electricity, water)
3.7 Insurance
3.8 Others
3.9 Total manufacturing overhead ( 3.1 + up to 3.8 )
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4. Total manufacturing cost (1.5 + 2 + 3.9 )

5. Work in process

5.1 Work-in process, beginning

5.2 Less: Work-in process, ending
5.3 Net Work-in-process

6. Cost of goods manufactured (4. + 5.3.)

7. Add: Finished goods inventory, beginning

8. Cost of goods available for sale (6. + 7.)

9. Less: Finished goods inventory ending

10. COST OF GOODS SOLD (8. - 9.)

COST OF GOODS SOLD FOR SERVICES

1. Direct Materials (e.g. food (restaurant), fuel (petrol station), paper (photocopying), room
supplies (hotel)

1.1 Beginning materials inventory

1.2 Add: Purchases + Freight-in
1.3 Total cost of materials available for operation
1.4 Less: Ending materials inventory
1.5 Total cost of materials purchased and used

2. Direct Labor
(e.g. cooks and waiters for restaurant, technicians for repair services, teachers
for language centers, washers for laundry service)

3. Operational Overhead

3.1 Depreciation

- Building
- Equipment
- Furniture & Fixtures
- Vehicles
- Others
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3.2 Rental
3.3 Indirect labor
3.4 Maintenance and repair
3.5 Indirect materials (e.g. flowers for hotel, restaurant)
3.6 Utilities (e.g. electricity, water)
3.7 Insurance
3.8 Others (e.g. transport)
3.9 Total operational overhead (3.1 + up to 3.8)

4. Cost of Services Sold (1.5 + 2. + 3.9)

COST OF GOODS SOLD FOR TRADING

1. Direct Materials

1.1 Beginning merchandise inventory

1.2 Add: purchases + Freight-in
1.3 Total cost of merchandise available for sale
1.4 Less: Ending inventory
1.5 Total cost of merchandise purchased and sold

2. Direct Labor

3. Operational Overhead

3.1 Depreciation

- Building
- Equipment
- Furniture & fixtures
- Vehicles
- others

3.2 Rental
3.3 Indirect Labor
3.4 Maintenance and repair
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3.5 Indirect materials (e.g. packaging material, stationery)

3.6 Utilities (e.g. electricity, water)
3.7 Insurance
3.8 Others
3.9 Total operational overhead

4. COST OF GOODS SOLD ( 1.5. + 2. + 3.9.)

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Table 5.5.1 PROJECTED MONTHLY CASH FLOW STATEMENT

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Particulars Pre- Month Total

Operating 1 2 3 4 5 6 7 8 9 10 11 12
Period
CASH INFLOW
Equity
Borrowings
Cash Sales
Collection of A/R
Other Income
Total Cash Inflow

CASH OUTFLOW
Pre-operating expenses
Purchase of fixed assets
Direct materials
Direct labor
Factory/operational overheads*
Inventory of raw materials
Inventory of work- in-process
Inventory of finished goods
Marketing expenses
Administrative expenses *
Interest expenses
Loan amortization
Taxes payable
Total Cash Outflow

NET CASH INFLOW (OUTFLOW)

CASH BALANCE BEGINNING

CASH BALANCE ENDING

* Excludes depreciation expenses and amortization of pre-operating expenses which are non-cash items.
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Table 5.5.2 PROJECTED ANNUAL CASH FLOW STATEMENT

Pre-Operating
Particulars Period YEAR
1 2 3 4 5
CASH INFLOW
Equity
Borrowings
Cash Sales
Collection of A/R
Other Income
Total Cash Inflow
CASH OUTFLOW
Pre-operating expenses
Purchase of fixed assets
Direct materials
Direct labor
Factory/operational overheads*
Inventory of raw materials
Inventory of work-in-process
Inventory of finished goods
Marketing expenses
Administrative expenses *
Interest expenses
Loan amortization
Taxes payable
Total Cash Outflow

NET CASH INFLOW (OUTFLOW)

CASH BALANCE BEGINNING
CASH BALANCE ENDING

* Excludes depreciation expenses and amortization of pre-operating expenses which are non-cash items.
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Table 5.6 Projected Balance Sheet

( As of _____________)

Pre-Operating YEAR
Period
1 2 3 4 5
ASSETS
Current Assets
Cash
Raw Materials Inventory
Work-in-process
Finished Goods Inventory
Accounts Receivable
Prepaid Expenses
Total Current Assets

Fixed Assets
Land
Building
Machinery & Equipment
Vehicles
Furniture & Fixtures
Less: Accum. Depreciation
Net Fixed Assets
Total Fixed Assets

Other Assets
Pre-operating expenses
Goodwill
Patents

TOTAL ASSETS
LIABILITIES
Current Liabilities
Accounts Payable
Loans Payable
Total Current Liabilities

Long-Term Liabilities
Loans Payable
Total Long-term Liabilities

OWNER’S EQUITY
Capital Beginning
Accumulated Capital
Add: Net Profit after Tax
Less: Withdrawal/ Dividends
Total Owner’s Equity

TOTAL LIABILITIES AND EQUITY

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5.7 Loan Repayment Schedule

Table 5.7 Loan Repayment Schedule

Principal at ______ Interest Principal Principal

____ Beginning Installment Paid Paid at End

10
11
12

5.8 Break-even point (BEP)

5.9 Return on Investment (ROI)

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5.10 Financial Analysis (Ratio Analysis: Current Ratio, Debt-Equity Ratio, Sensitivity
Analysis)