BUSINESS PLAN

- Is a detailed and integrated written document that describes the various

activities involved in opening and operating of a new entrepreneurial venture.
- In its simplest form, a business plan is a guide—a roadmap for your business
that outlines goals and details how you plan to achieve those goals.
MAJOR PARTS 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

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/s
4. Description of the business
5. Location of the business
6. Funding requirement and source
Proposed name of the business
The proposed name of the business must:
1. Reflect the business identity 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 consumer
At least 3 suggested names must be submitted to DTI for approval and registration.
Address of the business
It is important that the address of the business 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 important to have email address for electronic
communication and easier transactions.
Name of the owner/s
The name of the owner must be properly stated. if its sole ownership then there’s
only 1 owner. If it’s a partnership it must be stated what is the contribution or what type
of partner. And if its corporation it must include the name, nationalities and addresses of
the incorporators must be given. Incorporators are persons who originally started the
business.
Description of the business
A brief description of the business must include the information about what type
of product or service that the business intends to produce or provide. It includes the
business mission, vision, and objectives of the business. It may also include the other
plans for the business.
Location of the business
The basic entrepreneurial consideration is to place a proposed business in a
strategic location that will assure competitive advantage.
The following factors should be considered when deciding the location of the
business:
1. Proximity to the target consumers
2. Distance from the source of raw materials, labor and utilities
3. Availability and cost of transportation
4. Peace and order situation
5. Competition
6. Geographic and climatic conditions
Funding requirement and source
The estimated total initial cost of the business venture must be clearly indicated.
It should include the project breakdown or allocation of the total cost. Example, how
much will be for the building, fixtures, equipment, supplies and working capital. It also
presents the source/s of income. The initial cost of investment may be provided solely
by the owner/s or by the owner and creditors. The estimated period to settle the funding
source provided by creditors must also be mentioned.
FOLLOW THIS FORMAT!!!!!!!!!!
BUSINESS PLAN
(SPACE)
(SPACE)
(SPACE)
(SPACE)
(SPACE)
(Name of your Proposed Business)
(Address of your Proposed Business)
(Contact details of your Proposed Business)
(SPACE)
(SPACE)
(SPACE)
(SPACE)
(SPACE)
(SPACE)
(SPACE)
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OWNED BY:
(SPACE)
(SPACE)
(YOUR NAMES AS THE OWNERS)
 INTRODUCTION
(SPACE)
This section of the business plan presents the description of the business, its location, and
the total funding requirements and the possible funding source.
(SPACE)
(SPACE)
Description of the Business
(Content)

Location of the Business

(Content)

Funding Requirement and Sources of funds

(Content)
EXECUTIVE SUMMARY
It points out the overall highlights of the business plan as well as a bird’s eye
view of its section. It may consist of at least 3 to 5 pages. It must be written in simply
language that can be easily understood and at the same time attract the attention and
influence the decision of the reader.
Investors, creditors and other significant parties usually proceed to the details of
the business plan once they find the executive summary interesting, convincing and
worthy of further reading. Part of this section are:
1. Vision, mission, goals and objective of the business
2. Business model
3. Business and product position
4. Wealth improvement approaches
5. Parties supporting the business
Vision, mission, goals and objective of the business
The business plan must depict the fundamental characteristics, nature, values,
identity and image of the business. These important concerns are embodied in the
Vision, mission, goals and objective (VMGO) of the business. The VMGO must be
clearly stated and understood. They must be reviewed and revisited every 3 years to
determine whether they are still reasonable and achievable in view of the rapid changes
in the business community.
Business model (Floor plan)
The business model defines the perspective of the business in terms of its
structure, production, operation and financial activities that will lead to the achievement
of VMGO.
Business and product position
It tells the size of the market and the target market share of the business and the
product. The Business and product position must convince readers that the proposed
business has a competitive advantage in the market.
Wealth improvement approaches
It describes the methodologies or approaches that will be taken by the business
in order to:
1. Maintain competitive advantage
2. Position the business in the market
3. Improve the market share, and
4. Maximize the utilization of resources
Parties supporting the business
 The parties that have a direct relationship with the business are consumers,
creditors, suppliers, employees and staff.

ENVIRONMENTAL ANALYSIS (SWOT ANALYSIS)

It is a strategic tool that helps determine the external and internal factors
affecting the performance of the business. These factors may be political, economic,
social or technological in nature. It consists of at least 20 pages including graphical
presentations, tables and computations. The environmental analysis section is
considered to be the heart of the business plan. It consists of global analysis,
societal analysis and industry analysis.
Global analysis
It may begin with a description of the global business situation to provide enough
knowledge about the global perspective or the horizon of the business. Remember that
it is not the business trend that has the most significant bearing on the global analysis
but rather the possible business opportunities or ideas that the global business trend
offers.
Societal analysis
After describing and possibly convincing the reader of the bright prospect in the
world market. It is now time to analyze the societal factors that may affect the business
and it includes the following variables:
1. Political forces
2. Economic forces
3. Socioeconomic forces
4. Technological forces
5. Ecological forces
6. Legal forces
Industry analysis
It includes 3 important task:
1. Conducting a critical evaluation of the forces in the industry that affect the
proposed business
2. Evaluating the proposed position of the business in the industry
3. Determining the most appropriate strategy that may be adopted by the proposed
business
Another format that you can use includes trend in the industry, consumer
analysis, competitor analysis, market forecast, market share, market position and
marketing strategy.
BUSINESS DESCRIPTION
The business description section presents the nature and form of the business to
be undertaken, and may cover 2 to 3 pages. As to nature, the business may be a
merchandising, manufacturing, service, agriculture or hybrid. The description must
include the innovative features of the business. As to form, it may either be a sole
proprietorship, partnership or corporation. The reason/s for the selection of form and
nature must also be indicated.
In addition, it also includes the following information:
1. Product or service offered that it plans to produce or serve
2. Various plant and equipment
3. Size of the proposed business
4. Personnel requirement
5. Administrative operation
FOLLOW THIS FORMAT!!!!!
EXECUTIVE SUMMARY

This section presents the (name of company), the business model, the business and
production position, wealth improvement approaches, and the parties supporting the study.

Vision, Mission, Goals, and Objectives

(Content)

Business Model
(Content)

Business and Product Position

(Content)

Wealth Improvement Approaches

(Content)

Parties Supporting the Business

(Content)
 ENVIRONMENTAL ANALYSIS

This section presents the analysis covering the following forces directly affecting the
proposed business that presents its strength, weakness, opportunities and treats.

BUSINESS DESCRIPTION
 This section shall describe the product to produce, the equipment needed in the small
business, the size of the business in terms of capitalization and scope, and the personnel required
to handle the operation.

Product Description
(Content)

Equipment/Materials Needed
(Content)

Size of the Business

(Content)

Personnel Requirement
(Content)
ORGANIZATIONAL PLAN
This provides the detailed description of the business in terms of the following:
1. Form of the business organization
1. Sole Proprietorship
2. Partnership
3. Corporation
4. Cooperative
2. Liability of the owner/owners
1. Limited liability
2. Unlimited liability
3. Organizational structure
4. Roles and responsibilities
5. Salary requirements

PRODUCTION PLAN or SERVICE PROVISION PLAN

This presents or describes the activities related to the production of goods. It
includes the following:
1. Production schedule
1. Demand for the product
2. Availability of resources
3. Capacity of plant
2. Production process
1. Exact processing procedure
2. Materials, parts, or ingredients required
3. Expected time to process the product
3. Processing plant and equipment
1. Capacity of the plant or machinery
2. Model of the machinery or equipment
3. Availability of spare parts
4. Cost and terms of payment
4. Sources of materials
1. Proximity of the source of the processing plant
2. Payment terms and conditions
3. Discounts and damages
4. Terms of shipment
5. Production cost

OPERATION PLAN
1. Evaluation of suppliers
1. Practice of total quality management (suppliers, and suppliers of
suppliers)
2. Materials requisition and receiving procedures
1. Basis of receiving the raw materials
2. Comparison of the order and receipt
3. Quality of materials received
3. Storage and inventory control system
 1. Owning or renting a warehouse
2. Management of the warehouse
3. Procedures in the transfer of goods
4. Control of inventory in the warehouse
4. Shipment system and control
1. Approval of shipping and sales documents
2. Terms of shipment
3. Manner of shipping the product
4. Other terms and conditions like sales contract
5. Functions of support services
1. Finance
2. Marketing
3. Operation
4. Human Resource

MARKETING PLAN
1. Product
2. Price
3. Place
4. Promotion
5. People
6. Process
7. Physical evidence

FINANCIAL PLAN
1. Major assumptions
2. Projected statement of comprehensive income
3. Projected statement of cash flows
4. Projected statement of changes in equity
5. Projected statement of financial position
6. Financial statement analysis