Planning the

Business
 At the end of the lesson, you should be
Learning able to:
Outcomes
1. Describe the common principles of
business planning

2. Discuss the stages of business plan

development

3. Explain the criteria of effective planning

4. Discuss the steps in business planning.

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1.
Principles of
Business
Planning

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Principles of
Business
1. Planning must be realistic.
Planning
2. Planning must be based on felt needs.

3. Planning must be flexible.

4. Planning must start with simple projects.

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2.
Stages of
Business
Plan
Development
 1. Essential Initial Research
Stages of
Business 2. Business Model
Plan
Development 3. Initial Business Plan Draft

4. Making the Business Plan Realistic

5. Making Plan Appeal to Stakeholders and

Desirable to the Entrepreneur

6. Finishing the Business Plan.

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3.
Criteria of
Effective
Planning

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 ▪ The plan should state clearly its objectives.
Criteria of
Effective ▪ The plan should provide measures for a
Planning satisfactory accomplishment of the objectives
in terms of quantity, quality, time and cost.

▪ The plan should state the policies, which

should guide people in attaining the
objectives.

▪ The plan should indicate what department or

unit would be involved in accomplishing the
objectives.

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 ▪ The plan should indicate time, which should
Criteria of be allowed for each activity.
Effective
Planning ▪ The plan should specify the required
resources and their corresponding costs.

▪ The plan should designate the officers who

will be held accountable for the
accomplishments of the objectives.

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4.
Steps in
Business
Planning
 1. Evaluate your personal resources and
Steps in interests, and the resources of the community.
Business ▪ Do you have the necessary funds?
Planning ▪ Do you have skills or management
experience?
▪ Does the government provide financial and
technical assistance?
▪ Are raw materials available?
▪ Are you interested in such business?
▪ Do you have good human relations?

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 2. Analyze your market.
Steps in ▪ Is there a good demand for your product?
Business ▪ How many competitors are there in the
Planning market?
▪ What is your estimated share in the market?
▪ Who are your customers?
▪ Are they interested in existing products or
services?
▪ Is it possible for you to offer better quality or
a lower price?
▪ Is there a reasonable profit?

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 3. Choose a proper business location.
Steps in ▪ Is it near your perspective customers?
Business ▪ Are there facilities like electricity, water,
Planning transportation, and
▪ communications?
▪ Is the place clean, decent, and peaceful?
▪ Do you have a good alternative in case the
best location is expensive?
▪ Is it accessible to raw materials and other
suppliers?

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 4. Prepare a financial plan.
Steps in ▪ What are your objectives?
Business ▪ How much money do you need?
Planning
▪ How will you spend the money?
▪ Where will you get the money?
▪ What are your expenses?
▪ How soon can you recover your money or
investment?

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 5. Prepare a production plan.
Steps in ▪ Is it economical to rent or buy production
Business equipment?
Planning ▪ Can you ensure or improve the product
design or quality?
▪ Can your production facilities meet demand?
▪ Do you have inventory control?
▪ Do you have proper scheduling of
production?

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 6. Prepare an organizational plan.
Steps in ▪ What type of business organization is most
Business suitable?
Planning ▪ Do you know the corresponding laws,
policies, requirements of your
▪ business organization?
▪ Who will be the officers and employees of
your enterprise?
▪ What are their duties and responsibilities?

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 7. Prepare a management plan.
Steps in ▪ What are your goals and objectives?
Business ▪ What are your strategies?
Planning
▪ Do you have business policies for your
customers?
▪ Do you have human resources development
for your employees?
▪ What is your program responsibility?

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Thank you for Listening!

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