ESSENTIAL COMPONENTS Of a Business Plan

 Cover Letter
 Title Page
 Table of Components
 Executive Summary
 Company Summary
 Products and Service Analysis
 Market Analysis
 Strategic Plan
 Financial Analysis
 Management Profile
 Appendix

EXECUTIVE SUMMARY

 Purpose: Describe the intent of the plan

 Definition: Define your business ideas clearly and briefly
 Overview: Cover the market potential for your business & list your past, present and future
competitors
 Features: Describe what makes your product or service unique and qualified to compete
 Financial Requirements: State what it take to put your business plan into action
 Growth: Outline how your company grow and continue to grow

COMPANY SUMMARY

Includes the following:

 Benefits: Show why your products or services are unique, distinct or better than what is
available
 Costs: Identify all expenses e.g. RM, other parts & supplies, labor & overhead & explain
sources of RM. For service business, how much will it cost to fulfill your services
 Location: Provide details where your business will be located and why chose that place.
What are the costs of the facilities?
 Technology: If your product or service is based on a unique technology, show why it is
important. Is it patented, copyrighted or trademarked?
 Future: What products or services will you be able to offer in the future in response to
changing consumer demands?
MARKET ANALYSIS

Includes the following:

 Industry Analysis: Present highlights of your industry. Is it a growing or declining industry?

What have been the historic business cycles? Is the industry seasonal? How long will the
market need your products and services?
 Competitors: List all your known competitors. Are they big companies or small ones? What
is their market share and are they profitable? What advantages or disadvantages do they
have over your business? How do you plan to use your advantages and overcome your
disadvantages?
 Customers: Identify your most likely customers. How many are there? Is it highly-targeted
market? What common traits do your customers have?
 Market: Describe how you will fit into existing market. How does your product or service
meet market demand? How do you compare with your competition?

The Strategic Plan

Includes the following:

 Marketing: Identify the major parts of your program and how they all fit together.
 Pricing: Summarize your pricing rationale, showing how it was developed and why it will
work.
 Distribution: Describe the distribution channels that you plan to use
 Sales: Outline how you plan to sell your products. Will you have a sales force?
 Promotion & Advertising: How will you promote and advertise? What will it cost?
 Forecast: Develop charts showing estimated sales for the next 5 years.

The Financial Analysis

Includes the following:

 Balance Sheet: This report projects business assets, liabilities and owners equity over a
minimum of 5 years.
 Income Statement: Projects the net profits or losses of the business over a 5 year period.
 Cash Flow Statement: Show where and when cash will be spent and raised over the next 5
years. Project how much you will owe and when each installment will be paid.
 Break-even Analysis: Present some of the relevant ratios of liquidity, profitability, stability.
 Capital Budgeting Techniques: Show the overall feasibility through determining the results
of Payback Period, NPV & IRR.
  Behavioral Approaches in Dealing with Risk: Use sensitivity and scenario analysis to get a
“feel” for the level of risk.
 Quantitative Approaches in Dealing with Risk: Use CE & RADR to allow explicit adjustment
for risk.

The Management Profile

Includes the following:

 Organizational: include an organizational chart showing who reports to whom and what
functions they perform
 Resumes: standard CV profile
 Professionals: include attorneys, accountants, business advisors or industry experts you plan
to use.
 Personnel: explain the employment needs and how you plan to hire the right people.

GUIDE QUESTIONS

For Market Analysis:

 How large is the market for your product or services?

 Is the market growing, stagnant or declining?
 Who are your customers?
 How do they buy?
 How can they be reached?

For Industry Analysis:

 To what degree is your product or service, a compelling purchase?

 How will the product or service be priced?
 How will the venture reach all the identified customer segments?
 How much does it cost to produce and deliver the product or service?
 How easy is it to retain a customer?

For Competitors’ Analysis:

 Who are your venture’s current competitors?

 What resources do they control?
 What are their strengths and weaknesses?
 How will they respond to the new venture’s decision to enter the market?
 How can the new venture respond to its competitors’ response?
 Who else might be able to observe and exploit the same opportunity?
 Are there ways to co-opt potential or actual competitors by forming alliances?
Of all the five senses that humans have, the sense of taste has a distinguished value because it is the
sense with which we enjoy food regardless if it is traditional or just your normal fast food fare. The food
business has always gained more ground than other types of businesses simply because it addresses a
basic human need – food. There are many ways for setting up a food business, including but not limited
to, as part of a hotel, as its own separate restaurant, roving food trucks, and of course the ever popular
food carts. The difference between food trucks and food carts is that they are fixed and unlike food
trucks, food carts needs to be moved by some means.

For the past decade, the Philippines had witnessed a substantial growth in the retail industry. This
growth can be evidenced by some recent literature and numbers like statistics, but it can also be seen in
terms of the size, investment on structure and modernization in operation.

In the Philippines, food retailing industry involves various arrays of sellers such as sidewalk vendors, we
and dry markets, sari-sari stores, groceries, supermarkets, hyper marts, warehouses, discount clubs and
convenience stores. One of the growing trends in the industry is doing sidewalk vending with the use of
food carts. In fact, food cart business is becoming more popular among the entrepreneur of Philippines
because it is easily manageable, requires a small capital, is easy to set up and has a low risk of business
failure.

Food in the Philippines is intricately linked with its culture and tradition. People love to eat food
especially those that is easily available and particularly ones that are available at cheap prices