Gec 2110 Midterm Module 3

Republic of the Philippines
PHILIPPINE STATE COLLEGE OF AERONAUTICS

INSTITUTE OF ENGINEERING AND TECHNOLOGY Acc.
No. :M2700903PM
Basa Air Base Campus, Floridablanca, Pampanga Certificate Number: AJA16.0920
Prepared by
ASSOC. PROF. MITZI C. GUTIERREZ, Ph.D
General Education Faculty
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INSTITUTE OF ENGINEERING AND TECHNOLOGY Acc. No. :M2700903PM
A. (Week 10)
* Introduction to Business Plan Preparation
* Definition of Business plan
* Need for Business Plan
* Main purpose of Business Plan
* Importance of Business Plan
* Reasons why need an outline for business plan
B. (Week 11)
* Components of a good business plan
* Basic Essential Part of a business plan
*Examples of Business Plan Outline
* Business Plan Checklist
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COURSE LEARNING OUTCOME (CLO)
CLO1: Gain an understanding MODULE LEARNING OUTCOME (MLO)

on how an entrepreneurial mind
works.
CLO 9: Use critical thinking MLO1:
skills to identify and evaluate Discuss background to
entrepreneurial opportunities,
business plan preparation and
manage risks and learn from the TLO29: Define & explain
describe Business Plan.
results of evaluating the business plan preparations as a
MLO2:
process. start for business.
Explain why is there a need for
CLO 5: Apply the concepts and TLO30: Identify the needs of
business plan preparation.
frameworks that underlie an business plan to guide through
MLO3:
entrepreneurial mind, in a team each stage of
Discuss & identify the main
situation, to generate ideas, purpose of business plan. managing business.
MLO4: TLO31: Distinguish &
solve problems, and explore
Explain the importance of understand the purpose &
opportunities. importance of business plan so
business plan as its roadmap to
CLO 8: Distinguish and explain as business will prosper & grow.
success.
the important elements of MLO5: TLO32: Classify & understand
business planning, finance & Distinguish the reasons why that there’s a need of an outline
marketing, production, business there’s a need an outline for for business as an insight on
business. steps to be taken.
analysis & managing rapid
MLO:6 TLO33: Understand the
growth and overcoming components & essential parts
obstacles in an entrepreneurial Identify the components of a
business plan as a guide for the of the business plan to attain
mind. the step by step preparations
entrepreneur.
CLO 4: Reflect on the MLO7: for business
characteristics of their own Discuss the basic essential part TLO34: Identify & learn how to
entrepreneurial mindset and of a business plan to know its prepare business plan outline &
steps in business checklist through examples
identify how to develop it further.
CLO 7: Determine elements of MLO8:
entrepreneurial behavior Set an example of business
including approaches to plan outline
teamwork and production, MLO9:
communication, creative and Discuss the business plan
critical thinking, checklist to identify the sections
innovation, risk taking and of the business plan
ethical responsibility for
professional development.
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TABLE OF CONTENTS
Title Page Time Allotment
(Minutes)
A.
1. Introduction to Business Plan Preparation 5 50
2. The Need for the Business Plan 6 50
3. Three Main Purposes of a Business Plan 6 45
4. The Importance of a Business Plan 6 40
5. Ten Reasons for Needing Business Plan 7 50
B.
6. Components of Business Plan 11 20
Executive Summary 11 10
Company Description 11 10
Market Analysis 11 15
12 10
Description of Management & Organization 12 15
Breakdown of Products & Services 12 10
Marketing Plan 13 15
Sales Strategy 13 15
Request for funding 13 10
Financial Projections 13 10
7. The Parts of the Business Plan 14 20
8. Examples of Business Plan Outline 16 15
9. Executive Summary 17 10
10. Business Plan Template 18 10
11. Timeline & Metrics 24 10
12. Financial Forecasts 25 10
13. Business Plan Checklist 26 20
14. Key Points 27
15. Summary 29
16. References 29
17. Activities -Formative Assessment 30
18. Rubrics 33
19. Honesty Clause 34
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A. INTRODUCTION TO BUSINESS PLAN PREPARATION
What Is a Business Plan?

A business plan is a written document that
describes in detail how a business — usually
a startup — defines its objectives and how it is to
go about achieving its goals.
A business plan lays out a written roadmap for

the firm from each of a marketing, financial, and
operational standpoint.
Business plans are important documents used to

attract investment before a company has
established a proven track record. They are also a good way for companies to keep themselves
on target going forward.
Although they're especially useful for new businesses, every company should have a business
plan. Ideally, the plan is reviewed and updated periodically to see if goals have been met or
have changed and evolved.
Sometimes, a new business plan is created for an established business that has decided to
move in a new direction.
Understanding Business Plans
A business plan is a fundamental document

that any startup business needs to have in
place prior to beginning operations. Banks
and venture capital firms indeed often make
writing a viable business plan a prerequisite
before considering providing capital to new
businesses.
Operating without a business plan is not usually a good idea. In fact, very few companies are
able to last very long without one. There are definitely more benefits to creating and sticking to
a good business plan — including being able to think through ideas without putting too much
money into them and, ultimately, losing in the end.
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A good business plan should outline all the projected costs and possible pitfalls of each
decision a company makes. Business plans, even among competitors in the same industry, are
rarely identical. But they all tend to have the same basic elements, including an executive
summary of the business and a detailed description of the business, its services and/or
products. It also states how the business intends to achieve its goals.
The plan should include at least an overview of the industry of which the business will be a part,
and how it will distinguish itself from its potential competitors.
THE NEED FOR THE BUSINESS PLAN
 Business plan is prepared using scientific approach in

determining possible business situations considering the
different perspective of people who are interested in the
business.
 Business plan actually is a roadmap to a business.
 Defined as a detailed integrated written document that

describes the various activities involved in opening & operating
a new entrepreneurial venture.
THREE MAIN PURPOSES OF A BUSINESS PLAN
 To identify the Business Plan
 Describe and analyze a business opportunity and/or a business already under way
 Examining its technical, economic and financial feasibility.
THE IMPORTANCE OF A BUSINESS PLAN
Business plans are like road maps; it’s possible to travel without one, but it will only increase
the likelihood of getting lost along the way.
Rather than putting yourself in a position where you may have to stop and ask for directions or
even circle back and start over, entrepreneurs often use business plans to help guide them.
That’s because they help business owners see the bigger picture, plan ahead, make important
decisions, and improve the overall likelihood of success.
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Why is business plan important?
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.
Formulating a business plan should be the first thing done when starting a new business.
Business plans are also important for attracting investors so they can determine if your
business in on the right path and worth putting money into.
Business plans typically include detailed information that can help improve the business’s
chances of success, like a market analysis, competitive analysis, customer segmentation,
marketing, logistics and operations plans, cash flow projection and an overall path to long-
term growth.
Though it may sound tedious and time-consuming, business plans are critical to success. To
outline the importance of business plans, here are 10-reasons why you need one for your
small business.
1. To help you with critical decisions
While business plans have many purposes, the primary

importance of a business plan is that they help business
owners make better decisions.
Entrepreneurship is often an endless exercise in decision

making and crisis management. Sitting down and
considering all the ramifications of any given decision is a
luxury that entrepreneurs can’t always afford. That’s where
a business plan comes in.
Building a business plan allows you to determine the answer to some of the most critical
business decisions ahead of time. Creating a robust business plan is a forcing function—you
have to sit down and think about major components of your business before you get started,
like your marketing strategy and what products you’ll sell. You answer many tough questions
before they arise. And thinking deeply about your core strategies can also help you understand
how those decisions will impact your broader strategy.
2. To iron out the kinks
Putting together a business plan requires entrepreneurs to ask

themselves a lot of hard questions and take the time to come up
with well-researched and insightful answers.
Even if the document itself were to disappear as soon as it’s

completed, the practice of writing it helps to articulate your vision in
realistic terms and better determine if there are any gaps in your
strategy.
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3. To avoid the big mistakes
According to the Small Business Administration, only about half of

small businesses are still around to celebrate their fifth birthday.
While there are many reasons why small businesses fail, many of the
most common are purposefully addressed in business plans.
According to data from CB Insights, some of the most common

reasons businesses fail include:
 No market need: No one wants what you’re selling.

 Lack of capital: Cash flow issues or businesses simply run out of money.
 Inadequate team: This underscores the importance of hiring the right people to help you
run your business.
 Stiff competition: It’s tough to generate a steady profit when you have a lot of
competitors in your space.
 Pricing: Some entrepreneurs price their products or services too high or too low—both
scenarios can be a recipe for disaster.
However, the exercise of creating a business plan can help you avoid these major mistakes.
Whether it’s cash flow forecasts or a product-market fit analysis, every piece of a business
plan can help spot some of those potentially critical mistakes before they arise.
4. To prove the viability of the business
Many businesses are created out of passion, and while

passion can be a great motivator, it’s not a great proof point.
Planning out exactly how you’re going to turn that vision into
a successful business is perhaps the most important step
between concept and reality. Business plans can help you
confirm that your grand idea makes sound business sense.
A critical component of your business plan is the market

research section. Market research can offer deep insight into your customers, your competitors,
and your chosen industry. Not only can it enlighten entrepreneurs who are starting up a new
business, but it can also better inform existing businesses on activities like marketing,
advertising, and releasing new products or services.
5. To set better objectives and benchmarks
Without a business plan, objectives often become arbitrary,

without much rhyme or reason behind them. Having a business
plan can help make those benchmarks more intentional and
consequential. They can also help keep you accountable to
your long-term vision and strategy, and gain insights into how
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your strategy is (or isn’t) coming together over time.
6. To communicate objectives and benchmarks
Whether you’re managing a team of 100 or a team of two,

you can’t always be there to make every decision yourself.
Think of the business plan like a substitute teacher, ready
to answer questions anytime there’s an absence.
Let your staff know that when in doubt, they can always
consult the business plan to understand the next steps in
the event that they can’t get an answer from you directly.
Sharing your business plan with team members also helps ensure that all member are aligned
with what you’re doing, why, and share the same understanding of long-term objectives.
7. To provide a guide for service providers
Small businesses typically employ contractors, freelancers, and

other professionals to help them with individual tasks like
accounting, marketing, legal assistance, and as consultants.
Having a business plan in place allows you to easily share relevant

sections with those you rely on to support the organization, while
ensuring everyone is on the same page.
8. To secure financing
If you’re planning on pitching to venture capitalists, borrowing

from a bank, or are considering selling your company in the
future, you’re likely going to need a business plan.
After all, anyone that’s interested in putting money into your

company is going to want to know it’s in good hands and that
it’s viable in the long run.
Business plans are the most effective ways of proving that and
are typically a requirement for anyone seeking outside
financing.
9. To better understand the broader landscape
No business is an island, and while you might have a

strong handle on everything happening under your own
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roof, it’s equally important to understand the market terrain as well.
Writing a business plan can go a long way in helping you better understand your competition
and the market you’re operating in more broadly, illuminate consumer trends and preferences,
potential disruptions and other insights that aren’t always plainly visible.
10. To reduce risk
Entrepreneurship is a risky business, but that risk becomes

significantly more manageable once tested against a well-
crafted business plan. Drawing up revenue and expense
projections, devising logistics and operational plans, and
understanding the market and competitive landscape can
all help reduce the risk factor from an inherently precarious
way to make a living.
Having a business plan allows you to leave less up to

chance, make better decisions, and enjoy the clearest possible view of the future of your
company.
B. 10 COMPONENTS OF A GOOD BUSINESS PLAN
1. Executive Summary
Your executive summary should appear first in your business plan. It should summarize what
you expect your business to accomplish. Since it’s meant to highlight what you intend to
discuss in the rest of the plan, the Small Business Administration suggests that you write this
section last.
A good executive summary is compelling. It reveals the company’s mission statement, along
with a short description of its products and services. It might also be a good idea to briefly
explain why you’re starting your company and include details about your experience in the
industry you’re entering.
2. Company Description
The next section that should appear in your business plan is a company description. It’s best to
include key information about your business, your goals and the customers you plan to serve.
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Your company description should also discuss how your business will stand out from others in
the industry and how the products and services you’re providing will be helpful to your target
audience.
3. Market Analysis
Ideally, your market analysis will show that you know the
ins and outs of the industry and the specific market you’re
planning to enter.
In that section, you’ll need to use data and statistics to

talk about where the market has been, where it’s
expected to go and how your company will fit into it.
In addition, you’ll have to provide details about the

consumers you’ll be marketing to, such as their income
levels.
4. Competitive Analysis
A good business plan will present a clear comparison of

your business to your direct and indirect competitors.
You’ll need to show that you know their strengths and

weaknesses and you know how your business will stack up.
If there are any issues that could prevent you from

jumping into the market, like high upfront costs, it’s best to
say so. This information will go in your market analysis
section.
5. Description of Management and Organization
Following your market analysis, your business plan will outline the way that your organization
will be set up. You’ll introduce your company managers and summarize their skills and primary
job responsibilities. If you want to, you can create a diagram that maps out your chain of
command.
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Don’t forget to indicate whether your business will operate as a partnership, a sole
proprietorship or a business with a different ownership structure. If you have a board of
directors, you’ll need to identify the members.
6. Breakdown of Your Products and Services
If you didn’t incorporate enough facts about your products and services into your company
description (since that section is meant to be an overview), it might be a good idea to include
extra information about them in a separate section. Whoever’s reading this portion of your
business plan should know exactly what you’re planning to create and sell, how long your
products are supposed to last and how they’ll meet an existing need.
It’s a good idea to mention your suppliers, too. If you know how much it’ll cost to make your
products and how much money you’re hoping to bring in, those are great details to add. You’ll
need to list anything related to patents and copyright concerns as well.
7. Marketing Plan
In your business plan, it’s important to describe how you

intend to get your products and services in front of
potential clients. That’s what marketing is all about.
As you pinpoint the steps you’re going to take to promote

your products, you’ll need to mention the budget you’ll
need to implement your strategies.
8. Sales Strategy
How will you sell the products you’re building? That’s the
most important question you’ll answer when you discuss
your sales strategy. It’s best to be as specific as possible.
It’s a good idea to throw in the number of sales reps

you’re planning to hire and how you’ll go about finding
them and bringing them on board. You can also include
sales targets.
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9. Request for Funding
If you need funding, you can devote an entire section to talking about the amount of money you
need and how you plan to use the capital you’re trying to raise. If you’ll need extra cash in a
year or two to complete a certain project, that’s something that’s important to disclose.
10. Financial Projections
In the final section of your business plan, you’ll reveal

the financial goals and expectations that you’ve set
based on market research.
You’ll report your anticipated revenue for the first 12

months and your annual projected earnings for the
second, third, fourth and fifth years of business.
If you’re trying to apply for a personal loan or a small

business loan, you can always add an appendix or
another section that provides additional financial or
background information.
The Bottom Line
Every company is different so your business plan might look nothing like another entrepreneur’s.
But there are key components that every good plan needs to have, and it’s always a good idea
to provide a clear and accurate summary of your business goals in your business plan.
The Parts of the Business Plan

(Basic Essentials to creating a business plan)
Here are the key pieces to a solid Business Plan.
Title page
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 The title, or heading, of the plan, and very brief description of the business.
 The date
 The name of the owner
 The company name and location
 A copyright or confidentiality notice
Table of Contents
 A list of the individual sections and their page numbers, starting with the Title Page and
ending with a section for Special Materials (references, etc.).
Summary/Overview
 A brief, but focused statement (a few sentences or paragraphs) stating why the business
will be successful. This is the most important piece of a Business Plan because it brings
everything together.
Market Analysis
 Identifies specific knowledge about the business and its industry, and the market (or
customers) it serves.
 An analysis that identifies and assesses the competition.
Description of the Company
 A close look at how the different components of the business fit together, such as:
o Information about the nature of the business and the factors that should make it
successful.
o Special business skills and talents that provide the business with a competitive
advantage, such as a unique ability to satisfy specific customer needs, special
methods of delivering a product or service, and so on.
Organization & Management

 The company’s organizational and legal structure, Is it a sole proprietorship? A
partnership? A corporation? (See: “Ownership Structures“)
 Profiles of the ownership and management team: What is their background, experience
and responsibilities?
Marketing & Sales
 The company’s process of identifying and creating a customer base. (See: “Market
Research“)
Description of Product or Service
 A detailed description of the product or service – from the customer’s point of view:
o How they will benefit from the product or service?
o Specific needs or problems that the business can satisfy or solve, focusing
especially on areas where the business has the strongest skills or advantages.
Funding
 The amount of current and future funding needed to start or expand the business.
Includes the time period that each amount will cover, the type of funding for each (i.e.,
equity, debt), and the proposed or requested repayment terms.
 How the funds will be used: For equipment and materials? Everyday working capital?
Paying off debt?
Financials
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 Explains or projects how the company is expected to perform financially over the next
several years. (Sometimes called a “pro-forma projection.”) Because investors and
lenders look closely at this projection as a measure of your company’s growth potential,
professional input is strongly recommended.
Appendix
 Provides specific information that certain individuals (such as creditors) may want review.
It allows the addition and/or deletion of information as needed, such as:
o Credit histories (personal & business)
o Resumes of key personnel and partners
o Letters of reference
o Details of market studies
o Copies of licenses, permits, patents, leases, contracts, etc.
o A list of business consultants, attorneys, accountants, etc.
These are just the basic essentials to creating a Business Plan. Each plan should be
tailored to the specific business.
EXAMPLES OF BUSINESS PLAN OUTLINE
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Example 1
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Example 2
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Example 3
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SIMPLE BUSINESS PLAN TEMPLATE
BUSINESS PLAN
COMPANY NAME
DATE PREPARED
00/00/0000
CONTACT
Contact Name
Contact Email Address
Phone Number
Street Address
City, State and Zip
webaddress.com
Example 4
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No. :M2700903PM
Basa Air Base Campus, Floridablanca, Pampanga
Certificate Number: AJA16.0920
EXAMPLE OF BUSINESS PLAN TEMPLATE
TABLE OF CONTENTS
EXECUTIVE SUMMARY ............................................................................................................................................................................................. 21
COMPANY OVERVIEW .............................................................................................................................................................................................. 21
PROBLEM & SOLUTION .............................................................................................................................................................................................22
THE PROBLEM ...................................................................................................................................................................................................... 22
OUR SOLUTION .....................................................................................................................................................................................................22
TARGET MARKET ...................................................................................................................................................................................................... 22
MARKET SIZE & SEGMENTS ................................................................................................................................................................................22
COMPETITION ............................................................................................................................................................................................................23
CURRENT ALTERNATIVES TARGET BUYERS ARE USING ............................................................................................................................... 23
OUR COMPETITIVE ADVANTAGES ..................................................................................................................................................................... 23
PRODUCT OR SERVICE OFFERINGS ...................................................................................................................................................................... 23
PRODUCT OR SERVICE ....................................................................................................................................................................................... 23
MARKETING ............................................................................................................................................................................................................... 23
MARKETING PLAN ................................................................................................................................................................................................ 23
TIMELINE & METRICS ................................................................................................................................................................................................24
TIMELINE ............................................................................................................................................................................................................... 24
MILESTONES .........................................................................................................................................................................................................24
KEY PERFORMANCE METRICS ...........................................................................................................................................................................24
FINANCIAL FORECASTS ........................................................................................................................................................................................... 25
KEY ASSUMPTIONS ..............................................................................................................................................................................................25
FINANCING ................................................................................................................................................................................................................. 25
SOURCES OF FUNDING ....................................................................................................................................................................................... 25
USE OF FUNDING ................................................................................................................................................................................................. 25
Example 5
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No. :M2700903PM
EXECUTIVE SUMMARY
Write this section last and summarize all the key points in your
business plan in less than two pages. This is your opportunity
to capture the attention of your reader and gain buy-in.
COMPANY overview
Provide a description of the overall nature of your business and
the industry in which it operates. Include details like industry
trends, demographics, and governmental and economic
influences.
Example 6
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No. :M2700903PM
Problem & Solution

THE PROBLEM
OUR SOLUTION
TARGET MARKET
MARKET SIZE & SEGMENTS
Example 7
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No. :M2700903PM
COMPETITION
CURRENT ALTERNATIVES TARGET BUYERS ARE USING
OUR COMPETITIVE ADVANTAGES
PRODUCT OR SERVICE OFFERINGS

PRODUCT OR SERVICE
Describe the product or service you are offering, how it benefits the buyer, and its unique
selling proposition.
marketing
MARKETING PLAN
Describe your marketing objectives and strategy here, including your costs, goals, and plan of
action.
Example 8
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No. :M2700903PM
timeline & METRICS Example 9

TIMELINE
ACTIVITY DESCRIPTION COMPLETION DATE
MILESTONES
MILESTONE DESCRIPTION COMPLETION DATE
KEY PERFORMANCE METRICS

ACTIVITY DESCRIPTION KEY METRIC
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FINANCIAL FORECASTS
KEY ASSUMPTIONS
Provide insight into how you came up with the values in your financial projections (e.g., past
performance, market research). Describe the growth you are assuming and the profit you
anticipate generating.
FINANCING
SOURCES OF FUNDING
USE OF FUNDING
DISCLAIMER
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Example 10
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No. :M2700903PM
Business plan checklist is the list of most important sections of the business plan that
you should include into your business plan in the same order. This checklist will guide you
through the step-by-step process of writing an effective and successful business plan for your
startup.
A BUSINESS PLAN CHECKLIST
1. EXECUTIVE SUMMARY
• Why will the business succeed?

• What do you want to start (or change)?
• How much money is required?
• What is the return on the investment?
• Why is the venture a good risk?
2. BUSINESS DESCRIPTION
• What type of business are you planning?
• What products or services will you sell?
• What type of opportunity is it (new, part time, expansion,
seasonal, year round)?
• Why does it promise to succeed?
• What is the growth potential?
• How is it unique?
3. MARKETING
• Who are your potential customers?
• How large is the market?
• Who are your competitors? How are their businesses positioned?
• What market share do you anticipate?
• How will you price your product or service?
• What advertising and promotional strategies will you use?
4. RESEARCH, DESIGN, AND DEVELOPMENT

• Have you carefully described your design or development?
• What technical assistance have you received?
• What research needs do you anticipate?
• Are the costs involved in research and design reasonable?
5. MANUFACTURING
• Where will the business be located? Why?
• What steps are required to produce your product or service?
• What are your needs for production (e.g., facilities and equipment)?
• Who will be your suppliers?
• What type of transportation is available?
• What is the supply of available labor?
• What will it cost to produce your product or service?
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6. ORGANIZATION
• Who will manage the business?
• What qualifications do you have?
• How many employees will you need? What will they do?
• How will you structure your organization?
• What are your plans for employee salaries, wages, and benefits?
• What consultants and specialists will you need? How will you use them?
• What legal form of ownership will you choose? Why?
• What licenses and permits will you need?
7. CRITICAL RISKS
• What potential problems could arise?
• How likely are they?
• How do you plan to manage these potential problems?
8. FINANCIAL
• What is your total estimated business income for the first year? Monthly for the first year?
Quarterly for the second and third years?
• What will it cost you to open the business?
• What will your personal monthly financial needs be?
• What sales volume will you need in order to make a profit the first three years?
• What will be the break even point?
• What will be your projected assets, liabilities, and net worth on the day before you expect to
open?
• What are your total financial needs?
• What are your potential funding sources? How will you spend it?
• How will the loans be secure?
9. MILESTONE SCHEDULE
• What timing have you projected for this project?
• How have you set your objectives?
• Have you set up your deadlines for each stage of your venture?
• Is there a relationship between events in this venture?
10. APPENDIX
• Have you included all important documents, drawings, agreements, and references?
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 A business plan is a written document describing a company's core business activities, objectives,
and how to achieve their goals.
 Startup companies use business plans to get off the ground and attract outside investors.
 Businesses may come up with a lengthier traditional business plan or a shorter lean startup
business plan.
 Good business plans should include an executive summary, products and services, financial
planning, marketing strategy and analysis, financial planning, and a budget.
 A business plan lays out a written roadmap for the firm from each of a marketing, financial, and
operational standpoint.
 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.
 Entrepreneurship is a risky business, but that risk becomes significantly more manageable once
tested against a well-crafted business plan.
 Let your staff know that when in doubt, they can always consult the business plan to understand
the next steps in the event that they can’t get an answer from you directly.
Page 28
A business plan is a written document that describes in detail how a business — usually a startup —
defines its objectives and how it is to go about achieving its goals.
A business plan lays out a written roadmap for the firm from each of a marketing, financial, and
operational standpoint. Operating without a business plan is not usually a good idea. In fact,
very few companies are able to last very long without one. There are definitely more benefits to
creating and sticking to a good business plan — including being able to think through ideas
without putting too much money into them and, ultimately, losing in the end.
A good business plan should outline all the projected costs and possible pitfalls of each decision
a company makes. Business plans, even among competitors in the same industry, are rarely identical.
But they all tend to have the same basic elements, including an executive summary of the business
and a detailed description of the business, its services and/or products. It also states how the
business intends to achieve its goals. It is a very important strategic tool for entrepreneurs.
It does not only help entrepreneurs to focus on the specific steps necessary for them to make business
ideas succeed, but it also helps them to achieve both their short-term and long-term objectives.
There are reasons why you need a business plan, First , to raise money for business, second, to
make sound decisions, third, to help identify potential weakness and fourth, to communicate ideas to
stakeholders.
References & Acknowledgements

Inspired by:
www.google.com, Introduction to Entrepreneurship

www.scribd.com, The entrepreneurial Mind
www.marketingteacher.com, marketing mix
openstax.org.entrepreneurship
study.com › academy › lesson › what-is-a-marketing
https://smallbusiness.chron.com/description-marketers
courses.lumenlearning.com › chapter › maslows-hierarchy
www.brandingmag.com › 2015/10/14 › what-is-branding...
www.slideshare.net › parminderkaurd19 › brandbranding.
www.entrepreneur.com › article an Introduction to Business Plans - Entrepreneur
https://www.investopedia.com/terms/b/business-plan.asp
https://smartasset.com/small-business/top-components-of-a-business-plan
Page 29
Assignment/Research:
Recitation:
Topics covered from the period of Midterm-Module 3
Midterm Exam- Topics covered from the period of Midterm-Module 1,

Module 2,
Module 3
Page 30
Page 31
Page 32
Academic Honesty Clause

Plagiarism is the use or close imitation of the language and thoughts of another author and the
representation of them as one’s original work. (1995 Random House Compact Unabridged Dictionary)
In the academe, it is an adaption or reproduction of an original intellectual creation, be it concepts,
ideas, methods, pieces of information or expressions of another author, whether individual, group, or
organization without proper acknowledgment. Moreover, plagiarism can range from borrowing a particular
phrase or sentence to paraphrasing someone else’s original idea without citing it. The most common form of
plagiarism, especially nowadays, is copying and pasting online material without crediting the source.
Every student must practice Academic Honesty. Academic misconduct is subject to an academic penalty by
the instructor and/or disciplinary sanction by the College.
Any Administrative & academic violations made by the student may have corresponding sanctions (refer to
Revised 2010 PhilSCA Student Manual).
.”
I _____________________________ fully understood the definition and description of plagiarism

stated above and I am familiar with the Student Conduct Code. I am aware that I shall be penalized if
plagiarism is found evident on my output which includes, gaining a failing grade.
As a college student and a member of scholarly community, I shall value other people’s ideas. Thus, I
pledged to commit to the following truthful statements:
1. I shall not submit other people’s work and present them as my own.
2. I will not take any passages from their own previous work without adding citations.
3. I will not rewrite someone else’s work without properly citing sources.
4. I shall not use quotations without citing the source.
5. I will not interweave various sources together in my work, without citing.
6. I will not rely too heavily on other people’s work.
7. I shall bring original thought into my own work.
8. I will not disclose any exams/questionnaires/activities after I have taken them.
9. I will not copy any material from another student and submit it as my own.
10. I shall not share my own completed output to another class/student.
__________________________
(Signature over Printed Name)
REFERENCE:
https://courses.lumenlearning.com/suny-collegesuccess-lumen1/chapter/academic-honesty/
https://www.business.umt.edu/ethics/academic-honesty.php
Page 33
---END OF MODULE 3---

MIDTERM
Lifted from:
www.google.com, Introduction to Entrepreneurship

www.scribd.com, The entrepreneurial Mind
www.marketingteacher.com, marketing mix
openstax.org.entrepreneurship
study.com › academy › lesson › what-is-a-marketing
https://smallbusiness.chron.com/description-marketers
courses.lumenlearning.com › chapter › maslows-hierarchy
www.brandingmag.com › 2015/10/14 › what-is-branding...
www.slideshare.net › parminderkaurd19 › brandbranding.
www.entrepreneur.com › article an Introduction to Business Plans - Entrepreneur
https://www.investopedia.com/terms/b/business-plan.asp
https://smartasset.com/small-business/top-components-of-a-business-plan
Prepared by:
ASSOC. PROF MITZI C. GUTIERREZ, Ph.D

General Education Faculty
Page 34
INSTITUTE OF ENGINEERING AND TECHNOLOGY Acc. No:M2700903PM
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Republic of the Philippines

PHILIPPINE STATE COLLEGE OF AERONAUTICS

COURSE LEARNING OUTCOME (CLO)

CLO1: Gain an understanding MODULE LEARNING OUTCOME (MLO)

A. INTRODUCTION TO BUSINESS PLAN PREPARATION

What Is a Business Plan?

A business plan lays out a written roadmap for

Business plans are important documents used to

Understanding Business Plans

A business plan is a fundamental document

THE NEED FOR THE BUSINESS PLAN

 Business plan is prepared using scientific approach in

 Business plan actually is a roadmap to a business.

 Defined as a detailed integrated written document that

THREE MAIN PURPOSES OF A BUSINESS PLAN

 To identify the Business Plan

 Examining its technical, economic and financial feasibility.

THE IMPORTANCE OF A BUSINESS PLAN

Why is business plan important?

1. To help you with critical decisions

While business plans have many purposes, the primary

Entrepreneurship is often an endless exercise in decision

2. To iron out the kinks

Putting together a business plan requires entrepreneurs to ask

Even if the document itself were to disappear as soon as it’s

3. To avoid the big mistakes

According to the Small Business Administration, only about half of

According to data from CB Insights, some of the most common

 No market need: No one wants what you’re selling.

4. To prove the viability of the business

Many businesses are created out of passion, and while

A critical component of your business plan is the market

5. To set better objectives and benchmarks

Without a business plan, objectives often become arbitrary,

your strategy is (or isn’t) coming together over time.

6. To communicate objectives and benchmarks

Whether you’re managing a team of 100 or a team of two,

7. To provide a guide for service providers

Small businesses typically employ contractors, freelancers, and

Having a business plan in place allows you to easily share relevant

If you’re planning on pitching to venture capitalists, borrowing

After all, anyone that’s interested in putting money into your

9. To better understand the broader landscape

No business is an island, and while you might have a

roof, it’s equally important to understand the market terrain as well.

10. To reduce risk

Entrepreneurship is a risky business, but that risk becomes

Having a business plan allows you to leave less up to

B. 10 COMPONENTS OF A GOOD BUSINESS PLAN

In that section, you’ll need to use data and statistics to

In addition, you’ll have to provide details about the

A good business plan will present a clear comparison of

You’ll need to show that you know their strengths and

If there are any issues that could prevent you from

5. Description of Management and Organization

6. Breakdown of Your Products and Services

In your business plan, it’s important to describe how you