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Business Plan:

A business plan is also a road map

that provides directions so a business
can plan its future and helps it avoid
bumps in the road. It is the only single
written document that must be prepared
before opening a new business or
expanding an existing business
Business Plan:

It also provides a clear direction to any

uncertain business endeavor. and
A business plan is a detailed and
integrated written document that describes
the various activities involved in opening
and operating a new entrepreneurial
venture
10 Reasons Why You Need to Prepare a Business Plan for
Small Business
1. To help you with critical decisions
2. To iron out the kinks
3. To avoid the big mistakes
4. To prove the viability of the business
5. To set better objectives and benchmarks
6. To communicate objectives and benchmarks
7. To provide a guide for service providers
8. To secure financing
9. To better understand the broader landscape
10. To reduce risk
Guided Questions:
1. What are some of the tests that need to be conducted
before putting up a business?
2. What is the difference between Business Plan and
Feasibility Study?
3. Who should prepare a business plan?
Two Major Tests to be Conducted every time a New
Business Idea is Created
1. Test of Possibility
2. Test of Feasibility
Note: The test of possibility on the new business should have a positive result,
so that the test of feasibility or viability will be conducted.
Business Plan versus Feasibility Study
The primary objective of the feasibility study is to determine
whether the proposed business is feasible or not in all areas.
If the outcome of the feasibility study is positive, then the
entrepreneur prepares the business plan.

The content and structure of the business plan are almost

the same as those of the feasibility study. The data shown
in the feasibility study are the same set of data presented or
used in the business plan. Nonetheless, the business plan
presents a more detailed discussion of how the business
will be undertaken and operated.
 MAJOR PARTS OF THE BUSINESS PLAN
There is no universally accepted standard format or structure of the business
plan.

1. Introduction
2. Executive Summary
3. Environmental Analysis
4. Business Description
5. Organizational Plan
6. Production Plan
7. Operation Plan
8. Marketing Plan
9. Financial Plan
10. Appendix
The first part of Business plan

INTRODUCTION
I - Introduction
The introduction presents the general perspective of the
business. It may consist of one to two pages. It includes,
among others, the following sections:
1. Proposed Name of the Business
2. Address of the Business
3. Name of the Owner or Owners
4. Description of the Business
5. Location of the Business
6. Funding Requirement and Source
Note: In case the consulting team prepares the business plan for prospective owners
or investors, the section Statement of Confidentiality is added as the last section.
Vocabulary list:
Business - refers to the organized efforts and activities of individuals to
produce and sell goods and services for profit.
Business Plan - is a detailed and integrated written document that describes
the various activities involved in opening and operating a new entrepreneurial
venture.
Entrepreneur – refers to a person who strongly advocates and correctly
practices the concepts and principles of entrepreneurship in operating and
managing the self-owned entrepreneurial venture.
Entrepreneurship – is the art of observing correct practices in managing and
operating a self-owned, wealth-creating business enterprise by providing
goods and services that are valuable to the customers.
Feasibility – the possibility that can be made, done, or achieved, or is
reasonable.
Corporation - is a legal entity created by individuals, stockholders, or
shareholders, with the purpose of operating for profit.
1. Proposed Name of the Business

The formulation and drafting of the

proposed business name is not as simple
as it sounds. It is a delicate and important
entrepreneurial task. Remember that the
name of the business may exist in the
market for the many years. Careful and in-
depth planning is of prime importance.
The proposed business name must:

1.Reflect the business identify and image,

2.Promote the philosophical values and
culture that the business values the most,
3.Profess the brand identity of the product
4.Attract or influence the target costumers
Note: At least three suggested trade names must be submitted to the department
of Trade and Industry for approval and registration.
2. Address of the Business
It is important that the address of the Business is
correctly written because all business correspondence
is mailed to the business address. Raw materials and
other manufacturing supplies are also shipped by the
seller to the designated business address.
Nowadays, it is also necessary for the business to
have an e-mail address to facilitate electronic
communication between the business and the
customers, suppliers, creditors, and other significant
parties.
3. Name of the Owner
The name of the owner must be properly stated. In a
sole proprietorship, there is only one owner. In case
the venture is a partnership, the names of the partners,
including the extent of their liabilities, must be
indicated. For example, if a partner’s must be properly
mentioned.
For business ventures that will operate as a corporate
entity, the names, nationalities, and addresses of the
incorporators must be given. Incorporators are persons
who originally formed the corporation.
4. Description of the Business
A brief description of the business must include
information about the type of product or service
that the business intends to produce or provide. It
may include a brief information about the ultimate
mission, vision, and objectives of the business.
The other products or services that the business
plans to produce or provide must also be
mentioned in the description of the business
5. Location of the Business

There are no rigid rules in the selection of the

business location since several variables affect
the selection of the business location . The basic
entrepreneurial consideration is to place the
proposed business in a strategic location that will
assure competitive advantage.

What is the difference between the Address sections of the Business and
Location of the Business?
The former simply states the exact business
address. No additional description is
provided to highlight the exact business
address. The latter indicates the reason/s
for the selection of the location. In case the
processing plant is not within the vicinity of
the business, its exact location must be
described.
The following factors should be considered when deciding on
the location of the proposed business:

1.Proximity to the target customers

2.Distance from the sources of raw materials,
labor, and utilities
3.Availability and cost of transportation
4.Peace and order situation
5.Presence of direct competitors
6.The geographic and climatic conditions
6. Funding Requirement and Source
The estimated total initial cost of the business venture
must be clearly indicated. It should include the projected
breakdown or allocation of the total cost, e.g., how much
will be for building, fixtures, equipment, supplies, and
working capital. This section also presents the source or
sources of funds. The initial cost of the investment may
be provided solely by the owner or owners or partly by
the owner and creditors. The estimated period to settle
the funding source provided by the creditors must also be
mentioned
1. Prepare the introduction section of your business plan. The cover page of your
final output will appear below.
BUSINESS PLAN

(Name and Address of Your Proposed Business)

JYNAPHI PROCESSING COMPANY
216 JALIPA STREET, PBLACION 1
PIGCAWAYAN, COTABATO
www.jynaphi@yahoo.com

OWNED BY:
(Your Names as the Owners)
ANGEL CO
PRINCESS TAN
2. Use the guide for the format of the Introduction section of your business plan.

INTRODUCTION
This section of the business plan presents the description of the business, its
location, and the total funding requirements and the possible funding source.

Description of the Business

Location of the Business

Funding Requirement and Source of Funds

Thank
you!..