Unit II

Implementing a Business Plan

After you have learned how to formulate a business plan, you will now be given the
chance in this unit to implement a simple business plan. This experience will hopefully open
doors for you to carry out your fresh ideas and put them into action.
The implementation of the business plan, however, is a tough endeavor for most
entrepreneurs. Plans can easily be designed on paper. Ideas and concepts for a good business
plan are easy to come up with, but the appropriate implementation is more of a challenge. The
realization of the entire business plan will be, to a great extent, dependent on a well-timed,
effective, and efficient execution. A reexamination is needed to assess whether or not enough
research has been done so that your strategies will go as planned. There are instances that plans
do not materialize themselves perfectly because the entrepreneur did not prepare for the
uncertainties that often arise. Thus, the entrepreneur must develop a positive attitude and employ
a flexible approach to face sudden changes in the business environment.
The entrepreneur must aim for the execution of the business plan at the right time and
using the right methodology. Measurement of progress should be based on actions and not
words. At the end of the day, the entrepreneur has to reflect on how to be better by fine-tuning
business strategies and adjusting to sudden changes regularly.
As a modern entrepreneur, executing ideas is always a trial-and-error undertaking. As
part of the creative process, the more times the entrepreneur tries, the more he or she learns, and
the better he or she gets at bouncing back from missteps.
Because business is a risky endeavor, you have to manage all the business
implementation risks. In Beyond Walls 1.3, Apply It in Real Life activity in Module 1, you were
able to interview successful entrepreneurs and inquire about how they started and manage their
business. You have learned that most of them did not experience success on their initial attempt.
The first letdown they experienced did not push them out of the business; rather, they kept going
using their experience as an investment rather than a liability.
 This unit will be very exciting and very challenging for you at the same time because you
will be tasked to implement a small business in your locality. This will also validate if you really
have a calling for entrepreneurship

Lesson 5: Implementation of Marketing Plans

and Strategies

Introduction:
The marketing plan plays a very important role in the entrepreneur's business plan as
discussed in Module 3. Its role is to ignite the customers to be informed, be persuaded, and be
reminded to buy a product or avail of a service. To fulfill this role, this module will teach you
how to make marketing concepts a reality. The implementation of a marketing plan and
strategies is the stage when the entrepreneur puts his or her marketing ideas into action.
Therefore, this module will cover the basic steps on how to implement a marketing plan and
eventually sell the product or service to the primary target market. You will be tasked to
implement a marketing plan for your selected product or service in your locality.

Objectives
At the end of this lesson, the students will be able to:
 Implement marketing plans and strategies.
 Sell the product or service to the primary and the secondary target
market.
 Manifest an understanding of starting and operating a simple
business.

Implementing the Marketing Plans and Strategies

Preparing a marketing plan and implementing a marketing plan are two different
disciplines. Preparing a marketing plan is research-based, very technical, and focused on coming
up with a methodical marketing plan. Implementing a marketing plan is strategy- and tactics-
based, needs manpower to execute, and is results-oriented. Implementation of the marketing plan
is an iterative process and does not end after one round. It changes and adapts to the internal and
external factors affecting the product or service. Therefore, the entrepreneur should always
prepare a marketing plan ideally for one year.
While creating a marketing plan, along with the other parts of
business plan, is very challenging and requires a lot of research, its
implementation is equally, if no more challenging. The
implementation stage requires that the entrepreneur be very flexible
and yet steadfast on his or her vision. The execution of the plans will
require him or her to interact with a very dynamic business
environment, and he or she has no choice but to keep up or at the best,
even a head of key players.
Effective marketing implementation starts with listing the marketing activities and those
who will be involved in executing the tasks. As the driver of the business, the entrepreneur must
be able to know who are responsible for what and must manage them to perform their functions
effectively.

From the planning to the execution stage, the entrepreneur must be clear
on the accountabilities assigned to key personnel in the business

Steps for an Ideal Marketing Plan Implementation

Step 1: Divide the marketing into small manageable pieces and manageable time line
The entrepreneur must discuss the marketing plan and the marketing objectives
thoroughly to the marketing team at the onset and establish accountabilities. The value
proposition, the unique selling proposition, and the 7Ps or the marketing mix must be clear with
the members of the marketing team and why these were chosen to best communicate the product
or service to target customers.
Step 2: Explain and delegate the marketing tasks to assigned individuals
Step 3. Keep the communication line open
The entrepreneur must ensure that the line of communication between him or her and the
marketing team is always open to avoid implementation issues.
Step 4. Monitor accomplishments and progress
Step 5. Open yourself to relevant ideas of your marketing team.
Step 6. Adapt to the internal and external factors that affect the marketing function
Step 7. Incorporate incentives and penalties for motivation
Step 8. Analyze and interpret the results
Actual Selling of a Product or Service
The first objective a marketing strategy is usually to create awareness. But the ultimate
objective of any marketing strategy is for the product or service to be sold because this is where
the revenue comes in. Awareness cannot be translated to peso value but sales can be. The
validation of how good or bad a marketing strategy is can be manifested through how much sales
the entrepreneur generated. The actual selling of a product or service may seem to be easy for
some, or it may vary per person or per business. But many successful entrepreneurs believe that
there are proper methods to sell products or services. Sellers are expected to be skilled in probing
and digging deep into the needs and wants of customers. These pieces of information can be
translated as a significant investment of the seller to effectively drive sales.
There are various selling strategies entrepreneurs use that you can also apply when you
sell your actual product or service:
1. Cold calls - This is a selling strategy whereby the seller calls a random person who has
no relationship with the business yet but is considered as a potential customer. This selling
strategy is one of the most difficult to pull off. The seller should expect that the customers are
"cold" and skeptical when he or she sells the product to them.
2. Consultative selling - Unlike cold calls, consultative selling is a dialog process
between the buyer and the seller (who acts as an expert consultant) as to how the buyer's
problems or pain points can be addressed by the product or service of the seller.
3. Direct selling - This is a selling strategy that is common in the Philippines. It is where
an independent direct seller goes directly to the customer's house or office and presents his or her
products for selling.
4. Persuasive selling - This is often associated with being pushy, but persuasive selling 4.
is different in such a way that it is selling with subtlety. This is positioning the product or service
as rare, limited, or recommended by experts. The persuasive seller is able to engage a customer
in a conversation rather thana sales pitch. This way, the customers are put at ease.
Selling is a process. There is a series of steps followed by a salesperson when selling a
product or service. However, given a very dynamic interaction between the salesperson and the
customers, the salesperson may choose to skip some steps. At times, a salesperson may need to
revert to the previous steps before moving forward. A salesperson's approach may also vary
depending on the type of customer. For instance, dealing with a consumer is different from
dealing with a business customer. A consumer will purchase a product for consumption, whereas
a business customer will purchase a product with the intent of further processing or reselling to
make a profit. Nonetheless, here are the steps to sell a product or a service effectively.

Steps in Selling a Product or Service

Step 1: Find prospects.
 There is no such thing as "everyone," "all of them," or "everybody" when it comes to
marketing and selling. At the onset, the entrepreneur has to choose an initial group of people that
has common interests and preferences that the entrepreneur has to find. This mechanism lessens
unnecessary marketing and selling expenses and makes the strategy more effective and suited to
the primary target market. These primary target markets are also called sales leads or prospects.
These prospects have to be screened as to their potential profitability and longevity with the
business. The entrepreneur must segment the prospects according to his or her preferred
demographics, psychographics, behavior, and geography. When an entrepreneur begins to gather
a number of new customers, he or she can leverage on them by asking for their referrals.
Step 2: Sell credibly to your primary target market (sales presentation).
The selling presentation is one of the most challenging tasks in selling. The entrepreneur
or his or her sales team/agents must contact the prospects in any of the possible channels where
they can be easily reached such as face-to-face, Internet (e-mail, Web site, social media). mobile
phone, landline phone, text message, advertisement, affiliates, or any other creative and strategic
channel where they will be enticed to buy. This initial selling phase determines who in the
household is the decision-maker and how the product or service can be of use to them. But all of
these pieces of information are difficult to acquire if the customers do not trust the business.
Therefore, the sales team or sales agents must establish credibility from the beginning and give
the customers a compelling reason why they should trust the business
Once trust has been established, the sales team members must come up with a convincing
ng about the product that will catch the customers' attention. Once attention has been given, they
have to offer a deal that will inspire the customers to act. Last, they have to institute a selling
tactic that will actually prompt customers to buy the product or service.
There are four types of sales presentation as follows:
a. Stimulus response - offering the customer compelling proposition that triggers them to
initiate purchase
b. Formula selling – follows a standardized selling approach or based b. a formula
C. Canned presentation - is a sales presentation memorized by the presenter
d. Need presentation - is a question-and-answer presentation with the aim of
understanding the exact needs and wants of the customers
Step 3: Manage customers' inquiries and objections.
Customers are not buying for the sake of buying. They are the entrepreneur's major
critique. They are usually asking questions related to price or value proposition. They need to be
assured that the value of their money is satisfied by the value of the product or service.
Sometimes of these objections are also coming from those who are not interested to buy.
Therefore, the challenge for the seller is to address the unique needs of customers based on their
interests, needs, and situations to proceed with closing the sale.
Step 4: Close the sale.
The entrepreneur must close the sale by ensuring that both the seller (entrepreneur) and
the buyer agree to the conditions of the sale. The entrepreneur must inspire the buyer to instigate
an action by making a firm commitment to buy the product or avail of the service. In processing
the sale, the entrepreneur should ensure that the customers will have a seamless buying
experience so that they will be encouraged to repeat transacting with the business. Incorporating
a value-added feature or service in the sales process also makes a dent in the minds of the
customers, triggering them to do a repeat transaction. In essence, closing a sale is not just a
transaction but an organic ending of the sales process.
Step 5: Develop a long-lasting relationship with customers.
Closing the sale as stated is the organic end of the sales process. However, when one
process ends, another one begins. Closing the sale spearheads a long-lasting relationship with
customers. The entrepreneur must ensure that he or she asks for customer feedback regarding the
product or service sold so that he or she knows if the customer is satisfied or not. The
entrepreneur should assess the product or service satisfaction of customers and confirm if their
satisfaction is complete. Entrepreneurs must also prepare their after-sales strategy to entice
customers to come back and repeat the purchase over and over again. This way, the
entrepreneurs will save on additional marketing expenses to acquire new customers, because
maintaining happy customers is more cost-effective than getting new ones. In short, the
entrepreneur (seller) must maintain the good rapport that he or she has with loyal customers.
There is no single formula or just one best way to become effective in
selling. Focus on the needs of the client. Always try to offer him or her value.
Then everything will fall into place.

Do you think it is possible for a bad strategy to be implemented

and executed well and to create value for the business? Explain
your answer.

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Lesson 6: Implementation of a
Business Operations Plan

Introduction:
Implementing the operations plan is one of the most difficult processes to undergo due to
the details that the entrepreneur has to consider. It covers the 4Ms of operations that are equally
important to cover all aspects of business operations. The flow of implementation of these 4Ms
will depend on what business model or nature/type of business the entrepreneur will choose.
Regardless of the business type/model, the entrepreneur must implement the methods (processes)
that he or she envisioned in the operations plan, hire the right manpower to do the job description
crafted, acquire or lease machineries, and use relevant technologies, such as e-commerce, in
conducting businesses and source materials from the most efficient and practical suppliers.
Similar to the marketing plan implementation, all of these will be learned in this module
using the practical approach of being with a real entrepreneur rather than focusing on the
academies of implementing the operations plan. You will be acquainted with a business example
that involves both manufacturing and service, so you can relate how to operate and run a
business from the beginning until it matures and becomes an established venture.
Objectives
At the end of this lesson, the students will be able to:
 Manifest an understanding of starting and operating a simple business
following the operations plan and strategies.
 Demonstrate the knowledge on how to implement the business
operations plan using the 4Ms.
Lesson Proper:
1. Methods
The implementation of processes or methods in the operations plan will depend on the
entrepreneur's business type or model. The general classification of the business type or model
would be the manufacturing business or service business. For your better appreciation, these two
will be discussed in the following hybrid business, which is both a manufacturing and a service
business
Roainne's Homemade Batutay Business in Cabanatuan City
Mr. Ron Lopez and Mrs. Allaine Lopez decided to put up Roainne's Batutay Longganisa
Business in Cabanatuan City. Based on their marketing research, they discovered that not only
the people of Cabanatuan like the taste of batutay, the native beef longganisa, but also the nearby
areas including Metro Manila. They plan to manufacture their own batutay because Ron just
came from his one-year training from TESDA where he learned how to make longganisa.
Aside from manufacturing, Allaine suggested that it will make a difference if they will
incorporate service in their business as well. They will implement a longganisa delivery service
via mobile and social media but limited to Cabanatuan City only. This service will include
delivery of cooked and uncooked longganisa for a minimum purchase of two kilos for the
uncooked longganisa and one kilo for the cooked longganisa. Both will have P30 delivery
charge.
To complement the manufacturing business, they will also put up a mini-restaurant that
oei serves batutay as their main course in their business residence. They are now ready to operate
the business. They started with the methods and processes needed to run it.
Step 1. Register the business
Go to the city or municipality hall's business permit licensing ofice to secure a business
permit, and to the Department of Trade and Industry for the business name.
Business Name: Roainne's Homemade Batutay
Business Classification: Manufacturing and Service

Step 2. Determine the manufacturing elements or ingredients of the product.

Step 3. Decide the most practical and efficient manufacturing site and location: home-base or
rent/buy a commercial space.
Step 4. Decide whether to follow a product-based or process-based internal layout, and then
draw the manufacturing process flow.
Internal layout: Product-based layout (facilities are prearranged according to the
manufacturing process flow)
Step 5. Decide on what distribution process and distribution process channel will be most
economical for the business.

2. Manpower
Because the business model has already been identified and set up, the next aspect of
operations to be looked into is to identify how many persons are needed and what their
qualifications are to operate the business.
Step 1. Create a table of organization to show a graphical description of the manpower
complement of the business.
Step. 2. Prepare a job description for each member of the organization so that everyone is aware
of what is expected of him or her.
The tasks assigned to the different department and the scope of responsibilities
of all personnel have to be clear.

Step 3. List the qualifications of employees needed and decide where to source them.
Step 4. Decide on where to source candidates (e.g., friends, relatives, employment, agencies,
referrals, manpower agencies, newspaper, social media, walk-ins)
Step 5. Interview the potential candidates and ask them relevant questions about the job.
Step 6. Choose the best candidates and provide a job offer. The job offer should contain the
following details.
Step 7. Ensure there is an employee training and development program for the business

3. Machine
Third in the list of 4Ms to be considered is the machine. It could be the physical
equipment or technology that can help the business operate seamlessly and with quality.
Step 1. List all the equipment and technology needed and decide whether it is economical to
purchase them or just rent them.
Machines are essential to achieve operational efficiency and for the
organization to be cost-effective.

Step 2. Understand how to use these machines properly, and apply all the necessary safety
precautions before using them. Protect these pieces of equipment from physical security risks.
Step 3. List alternate options in case the equipment becomes dysfunctional. The key is for the
business to continue no matter what. Know where to find repair shops when needed.
4. Materials
The last M in the 4Ms of operations is materials. The general premise for materials is where to
source these easily with a cheaper price and of good quality. The entrepreneur must have a
minimum of two or more suppliers for contingency purposes (e.g., in case one supplier is unable
to deliver).

Step 1 To determine the requirements for materials, the entrepreneur must decide on which path
to choose: (1) manufacture own products or offer own services, (2) outsource manufacturing or
service activities to a third party, and (3) purchase finished products or services from a
manufacturer
Step 2. List all the materials needed for the manufacturing or service business and decide where
to source them efficiently (at least two suppliers)
Step 3. Implement efficient logistics management-warehousing, transportation, and inventory
management.
Warehousing and Fulfillment Basics
First, let's define these two functions in detail. For your storage needs, you'll require a
warehouse--a company that can accept shipments of your inventory from your manufacturer and
store them safely. The options range from the completely informal--renting a friend's unused
garage space to self-storage facilities where you can drop off and pick up inventory yourself--to
tightly-run warehousing operations that manage hundreds of thousands of square feet of
inventory, as well as handle receiving and shipping.
You can also get creative. For instance, in the course of conversation one day, I
discovered that one of our online retailers had extra storage space and offered fulfillment
services (which we'll get into more detail about next), so we created an arrangement where they
provided all our warehousing and fulfillment operations.
So what exactly is fulfillment? A fulfillment house (which is often an added service of a
warehouse, a combo that can help simplify this task even further) will send out your orders as
instructed. In other words, if XYZ store orders 50 of your widgets, you would simply send word
to your fulfillment house in whatever mode of communication they prefer (e-mail, fax, etc), and
they handle the order for you. Seems simple, right? Well, it is, but there are specific factors you
should be aware of before making a final decision on your warehouse/fulfillment center.
First, examine your specific business needs right now as well as your anticipated needs
for the near future. Even if you can still handle your orders at this time, think ahead to six
months or a year from now. If you anticipate relatively fast sales growth, you may want to find a
solution you can grow into rather than reinvent the wheel in a few months.
Also, you should look for a company with a good track record and reputation. Find out
how many years they've been in business (although new companies can be good partners, too),
the types of customers they service, the specific services they offer, their quality control
processes, their knowledge of postal regulations and changes, and their client service practices.
Some companies can also provide value-added services, such as suggestions about
increasing efficiencies or decreasing postage costs. Find out if there's a contact person who'll
help you come up with strategic solutions for your overall shipping needs.