Lesson 11: Business Plan

Business Plan - a formal written document containing business goals, the methods on
how these goals can be attained and the time frame that these goals need to be achieved.

Purpose of a Business Plan

1. To guide the entrepreneur
2. To convince investors and financiers to financially support the enterprise
3. To harmonize the strategy and programs of enterprise managers and staffs

Stages of a Business Plan

1. Written prior to setting up an enterprise
2. Written during the first few years of enterprise
3. Written to focused on bringing the enterprise to a higher level of growth

Users of Business Plan

➢ Entrepreneur
➢ Investors/Financiers
➢ Managers and Staffs

Features on an Effective Business Plan

✓ Clearly stated objectives
✓ Measurability/realistic
✓ Policy guidelines
✓ Time frame
✓ Required resources and cost
✓ Responsible personnel and implementing office

Steps in Making Business Plan

1. Identify needs and wants of customers
2. Generate ideas and identify business opportunities
3. Informal screening
4. Select the business you want to get into
 5. Analyze the situation using SWOT analysis (Strengths, Weaknesses,
Opportunities
6. and Threats)
7. Prepared detailed business plan

Parts of A Business Plan

I. Introduction
A. The Business Concept and the Business Model
Concept - stresses the value of the product offering to target customers who would
most likely but it.
Model - formula on how the enterprise exactly plans to make money of the business.
Money-making
• Revenues
• Cost
• Investment
• Financing

B. The Business Goals: Vision, Mission, Objectives and Performance Target

• Vision - describes the desired future position of the company.
• Mission - defines the company’s approach.
• Objectives - end result of the mission and vision (SMART - Specific, Measurable,
Attainable, Realistic, Time-bound)
• Performance targets (Key Targets - Quantitative standpoint; Performance
Indicator - Qualitative/Aspirational/Scorecard of the Enterprise)

C. The Business Offerings and Justification

II. Executive Summary

• Synthesis of the entire plan
• Proponents
• Products/services
• Strategy and delivery system
• Environmental and regulatory compliance
• Capital Structure
III. The Business Proponents: Organizers with their Capabilities and Contributions
IV. The Target Customers and the Main Value Proposition to the Customer
V. The Market, Market Justification based on the Industry Dynamics and the Macro
Environmental Factors affecting the Opportunities and Threats in the Market, the
Size, Potential and Realistic Share of the Market
VI. The Product and Service Offerings
VII. The Enterprise Strategy and Enterprise Delivery System: Business
Competitiveness
VIII. The Financial Forecast and Expected Returns, Risk and Contingencies
IX. Environmental and Regulatory Compliance
X. The Capital Structure and Financial Offerings: Returns and Benefits to Investors,
Financiers and Business Partners