The Business Plan :

Creating and Starting

The Venture
 Planning as Part of The
Business Operation

• Planning is a process than never ends

for a business.
• As the venture grow up to mature
business, planning will continue …
Information Needs
• Before committing time and energy to
preparing a business plan, the
entrepreneur should do a quick
feasibility study of the business
concept to see whether there any
possible barriers to success.
What is a Business Plan?
• A business plan is a detailed and
integrated written document prepared by
the entrepreneur that describes all the
various activities involved in opening and
operating a new entrepreneurial venture.
• It is a integration of functional plans such
as marketing, finance, manufacturing, sales
and human resources.
Who should write the plan?
• The business plan should be prepared
by the entrepreneur.
• Though the perspective of the
entrepreneur has the major influence
on the business plan, he/she
nonetheless must still consider the
views of customers, creditors, and
even employees and staff.
 Who Reads The Plans?
• The business plan may be read by
employees, investors, bankers, venture
capitalists, suppliers, customers, advisors,
and consultants.
• There are three perspectives should be
considered in preparing the plan :
– Perspective of the entrepreneur
– Marketing perspective
– Investor’s perspective
Why Have a Business Plan?
• The business plan is valuable to the entrepreneur,
potential investors, or even new personnel, who
are trying to familiarize themselves with the
venture, it goals, and objectives.
– It helps determine the viability of the venture in a
designated market
– It provides guidance to the entrepreneur in organizing
his or her planning activities
– It serves as an important tool in helping to obtain
financing.
 Presenting The Plan
• It is often necessary for an entrepreneur
to orally present the business plan before
an audience of potential investors.
• In this typical forum the entrepreneur
would be expected to provide a short
(perhaps 20-minutes or half-hour)
presentation of the business plan.
Lay-out of a Business
Plan
10 Parts of a Business Plan
I. Introduction or the Cover Page
II. Table of Contents
III.Executive Summary
IV. Business Description
V. Market and Industry Analysis
VI. Sales and Marketing
VII.Production and Technical Plan
VIII.Management Plan
IX. Financials
X. Appendix
PART I. Introduction or
the Cover Page
▪ Your cover page should say the words
"Business Plan," and should include:
– Name of the owner or owners
– Business Name
– Business Logo
– Address of the business
– Telephone or Contact number
– Email address
– Date
 PART II. Table of
Contents
– All pages of your business plan should be
numbered and the table of contents
should include page numbers.
– Be sure to list headings for major
sections as well as for important
subsections.
 PART III. Executive
Summary
• The executive summary is what most
readers will go to first. If it is not good, it
may be the last thing they read about your
company. Lenders in particular read
executive summaries before looking at the
rest of a plan to determine whether or not
they want to learn more about the company.
• Your goal in this section is to generate
enough interest to make someone want to
read further for more detail.
 PART III. Executive
Summary (continued)
• This section should answer briefly the basic
questions a venture capitalist would ask.
• o Who is on the team?
o What business is your company in?

o Why should we invest in your product or

service?
o How will you achieve the potential in your
business model?
o How much money is required?
• Three to four pages summarizing the complete
business plan. For this reason, it is often easier to
write this section last.
 PART IV. Business
Description
• An overview of the Business
• Vision/Mission/Goals/Objectives (VMGO)
Statement
• Business Description
– Type of business
– Business Name
– Business Location
– Product Description
– Position
– Pricing Strategy
PART V. Market and Industry
Analysis
• Customer Profile
– Segment Description
– Needs and Description
o Who are they?
o Where are they?
o What do they need?
o How do they make their buying decisions?
o Where do they buy?
o How do you reach them with your marketing and sales
messages?
• Market Size/Trends
• Competition
• Labor Requirement
• Estimated Sales
 VI. Sales and Marketing
• Strategy
• Methods of Sales
• Advertising and Promotion
• Slogan/Tagline
 VII. Production and
Technical Plan
• Production Schedule
• Production Process
• Sources of Materials
• Production Cost
 VIII. Management Plan
• Organizational Structure
• Roles and Responsibilities
• Profit and Loss Sharing
 IX. Financials
• Expenses and Capital Requirements
• Sources of Funds
• Financial Plan
– Projected Income Statement
– Projected Cash Flows/Statement of
Changes in Owner’s Equity
– Projected Balance Sheet
– Financial Statement Analysis
 X. Appendix
• contains backup material
– Letters
– Market research data
– Leases or contracts
– Price lists from suppliers.
 Using and Implementing
The Business Plan
• The business plan is designed to guide the
entrepreneur through the first year of
operations.
• Implementation of the strategy contain
control point to ascertain progress and to
initiate contingency plan if necessary.
• Business plan not end up in a drawer
somewhere once the financing has been
attained and the business launched.
 Measuring Plan Progress
• Entrepreneur should check the profit and loss
statement, cash flow projections, and information
on inventory, production, quality, sales, collection
of accounts receivable, and disbursements for the
previous month.
– Inventory control
– Production control
– Quality control
– Sales control
– Disbursements
 Updating the Plan
• The most effective business plan can
become out-of-date if condition change.
• If the change are likely to affect the
business plan, the entrepreneur should
determine what revisions are needed.
• In this manner, the entrepreneur can
maintain reasonable targets and goals and
keep the new venture on a course that will
increase probability of success.
 Why Some
Business Plans Fail
• Goals set by the entrepreneur are unreasonable.
• Goals are not measurable
• The entrepreneur has not made a total commitment to
the business or to the family.
• The entrepreneur has no experience in the planned
business.
• The entrepreneur has no sense of potential threats or
weaknesses to the business.
• No customer need was established for the proposed
product or service.
The End
 Quiz
1. This is a test that has a positive results. TEST OF
POSSIBILITY
2. This is to test the viability. TEST OF FEASIBILITY
3. This is the process that never ends for the business.
PLANNING
4. It is a detailed and integrated written document
prepared by the entrepreneur that describes all the
various activities involved in opening and operating a
new entrepreneurial venture. BUSINESS PLAN
5. This is the one who prepares the business plan.
ENTREPRENEUR
6-10. Give at least five (5) readers of business plan.
11. Under this part of business plan includes the
production Schedule, production Process, sources of
Materials & Production Cost. VII. PRODUCTION
AND TECHNICAL PLAN
12. This is the company’s all about, what part of the
business plan? III. EXECUTIVE SUMMARY
13. It contains backup materials such as Letters,
Market research data, Leases or contracts and Price
lists from suppliers. X. APPENDIX
14. Under this business plan part, includes the
organizational Structure, roles and Responsibilities
and Profit and Loss Sharing.
VIII. MANAGEMENT PLAN
• 15. This is the overview of the Business
and VMGO Statement where found.
IV. BUSINESS DESCRIPTION
10 Parts of a Business Plan
I. Introduction or the Cover Page
II. Table of Contents
III.Executive Summary
IV. Business Description
V. Market and Industry Analysis
VI. Sales and Marketing
VII.Production and Technical Plan
VIII.Management Plan
IX. Financials
X. Appendix