Davao de Oro State College

Main Extension Class - Laak

Agriculture Department
Laak, Davao de Oro

ENTERPRISE PLAN MANUAL

Prepared by:

RENEE ROSAMAE Y. SAYLAN, Lic. Agr.

Faculty

January 23, 2024

1
 Rationale

Enterprise

Enterprise refers to any single or type of agricultural production for business

purposes such as rice or corn production. A combination of two or more agricultural

production is called enterprises. For the manager/farmer to have a guide what to do,

when to do, and how to do the production activities an enterprise plan is

recommended. The enterprise plan is generally prepared after the project feasibility

study has shown the viability or feasibility of the enterprise. It focuses on the most

promising scenario presented in the feasibility study. It can be revised during the

implementation phase as the need arises.

Objectives

At the end of this manual, students should be able to:

1. Differentiate project Feasibility Study from an Enterprise Plan;

2. Identify different parts of an enterprise plan;

3. Familiarize and interpret financial statements

4. Prepare an enterprise plan.

2
 The enterprise plan is sometimes called business plan. It differs from

feasibility study because the feasibility study is conducted to evaluate if the chosen

enterprise is viable, feasible and profitable. If it is found unprofitable then there is no

sense of preparing a business plan.

Sometimes, instead of preparing a feasibility study, the proponent will

conduct only the screening process because deciding what product to offer in the

market is the most difficult one. Now, try to think of possible business or enterprise

you would like to engage. You can get ideas from your friends, environment, and

other sources of business information. If you identified several business

opportunities it’s the time for you to go into screening process to narrow down your

choices. It is advisable to consider only the top 3 most preferred opportunities.

The screening process involves macro and micro screening stages. In macro

screening, similarly called personal level screening, there are five criteria namely,

personal preference, education/training, business contacts, work experience, and

family support. After macro screening, micro screening or firm level screening will

follow using the criteria like market demand, technology, availability of labor/skills,

availability of raw materials, financial or capital requirement, profitability, and

government support. Once you have decided which business to go into, subject it to

a SWOT analysis. SWOT is an acronym that stands for Strength, Weaknesses,

Opportunities, Threats. Strengths and Weaknesses analysis is focused on the

resources (7Ms) analysis for the money, materials, machines, methods, manpower,

management, and moment(time). The resource analysis identifies the strengths and

weaknesses of the proposed business to determine what it can deliver. Strengths

3
are those factors that contribute to the success of the prospective business.

Weaknesses refer to factors which may cause the business to fail. Opportunities

and Threats anaysis is focused on the environmental analysis specifically socio-

cultural, technical, economic, natural environment, peace and order, population

trends, government programs, and global environment. The environment analysis

gives you an indication whether the business can survive or not. Therefore, the

more opportunities, the greater the chances of survival.

As mentioned earlier, enterprise plan is prepared after feasibility study has

shown its viability. If the proponent will just undergo screening process, it should be

indicated that the strengths is greater than weaknesses and more opportunities than

threats so that survival is high.

There are four major parts of an enterprise plan. These are marketing,

technical, organizational, and financial plans. Let’s familiarize each part.

I. Marketing plan

This provides estimates of the sources of revenues of the enterprise. This

focuses on the marketing mix which includes the brief description of the product,

place of distribution or the target market, promotion, and price of the product to be

offered in the market.

a. The product

Briefly describe the product as the output. The proponent can

specify the weight, size, dimensions, brand name, and various uses.

4
 State also the present market situation like similar products offered in

the market, number of competitors that is offering the same product,

their capacity to offer the product in the market and the estimated

unmet demand of the consumers. Indicate also the distinct quality of

your product in comparison with the product of your competitors. The

target market should also be indicated. Market segmentation in terms

of age, income, geographical location, gender, occupation and others

is also advised. This would help owner focused in planning other

marketing activities. Emphasize also the specific location and size of

your target market.

b. Place or Channel of Distribution

This emphasizes the place where the farmer sells his/her end

product. This indicates on how the farmers would bring the product to

the end-users or consumers. The farmer may use middlemen o

distributors to help distribute and market the product. He should also

decide how much he would offer or give as commission /discounts to

the middlemen involved.

c. Promotion

The promotion aspect of marketing answers the questions:

How will you attract customers to buy? Will you advertise in

5
 newspapers, radio or tv? Or will you use posters, flyers, signboards,

etc? Will you have promotional gimmicks like free taste, Buena mano,

etc? How much will you spend for these promotional efforts?

But all of these things, especially tv/radio advertising, depend

on the nature of the product offered in the market especially what

market structure it belongs. Agricultural products generally belong to

purely competitive market where the said products are characterized

as homogeneous or identical. This implies that the cucumber product

of one farmer is exactly the same or a perfect substitute of the

cucumber of the other farmer, other factors being equal. So, if the

farmer will advertise his cucumber it’s the same thing as he is

advertising the product of his competitor. In addition, it is just an

additional cost on his part. And remember, an additional cost is also a

reduction to the farmer’s profit. As a businessman, try to think of an

efficient way of informing your prospect buyers about the existence of

your product.

d. Price

Price is the value of your product that would be paid by the

customers. Prices are generally being determined through the

interaction of the supply and demand. However, agricultural products

are priced according to the prevailing market price because farmers

6
 cannot dictate his price unless he will differentiate his product through

branding, market segmentation, added feature and minor ingredients,

and packaging. Pricing strategies like price lining, tie-in , competitive,

and unit pricing are also important to attract buyers. Price lining is

offering two or more classes of the same product at different prices

such as table egg’s prices vary from small, medium, and large sizes.

Tie-in means offering less desirable varieties or classes of product

together with the limited more desirable ones. Competitive pricing is

offering the product at a price equal or closer to the competitors’ price.

Unit pricing is pricing product in two or more units like 3 whole durian

fruit for Php100.

e. Location

Location is very important for traders and service providers.

They need to be located in a place that is convenient and accessible

to their customers. In agricultural production, mode of transportation

and farm to market roads are some of the important considerations.

The proponent has to draw also the location of the project. It will be

good if landmarks and access routes are shown.

II. Technical Plan

This part of the enterprise plan discusses the costs of producing a product or

providing a service from planning to actual operations. This includes the production

7
process, field/building lay-out, waste disposal, raw materials and labor

requirements.

a. Production Process

This shows the flow diagram indicating the different activities

involved in the production process. In agricultural production, this

includes from land preparation to harvesting activities.

b. Field or Building lay- out/ Selling Area

The field lay-out is needed to show how your production looks

like in the field. Building lay-out may be done to those who would want

the animal production like poultry and selling area lay-out for those

who intend to engage in trading.

c. Waste Disposal

How are you going to dispose your wastes? How much will it

cost? Can you recycle them? Or can you utilize them as other income

sources?

d. Property and Equipment

Properties and equipment that will be used should also be

considered. These are considered as the assets of the business. You

have to answer questions like : What equipment will you need for your

business? How much does each one cost? How many do you need

for each type of machine, equipment, vehicle? Compute for your

8
annual depreciation charges. This is necessary because properties

and equipment costs are not expenses but are considered assets as

mentioned earlier. Depreciation is the annual loss in the value of your

asset due to use, wear, tear, age & technical obsolescence. The most

commonly used depreciation method is the Straight Line where annual

depreciation is the same for each full year of an item’s life. It can be

computed by the following formula:

Annual Depreciation = {Cost – Salvage Value} / Useful Life

Where:

Cost is the price paid for the asset, including taxes, delivery

fees, installation, & any other expenses directly related to placing the

asset into use. Useful Life is the number years the asset is expected

to be used in the business. Salvage value is the expected market

value of the asset at the end of its assigned useful life generally

positive value but sometimes zero.

If properties or equipment are to be rented, indicate the rental

expenses to be incurred for the accounting period set. Accounting

period refers to the period of time used to summarize revenues &

expenses & estimate profit and can be a calendar year or fiscal year.

Calendar year if transactions occurring between Jan.1-Dec.31 are

considered while fiscal year is any twelve (12) months that begins on

9
 some date other January. You can also prepare financial statements

monthly, quarterly, or semi-annually.

Sample record for fixed investment and depreciation schedule.

Table 2.1 Fixed Investment and Depreciation schedule for property and equipment
Particulars Acquisition Quantity Total Life Annual Depreciation charges
Cost Cost span(in Year1 Year 2 Year 3
years)
Land*

Building

Machineries

* It will only depreciate in terms of soil fertility though generally it will not.

e. Production Schedule

This serves as the target or estimated volume of production in a

given period. This is used in determining the expected revenues of the

firm.

Example:

Table 2.2 Production schedule for cucumber production (0.1 ha) 1st cropping

Period Volume of production Units

Class A 2,350 kg

Class B 2,000 kg

Class C 1680 kg

10
 f. Direct and Indirect Raw Material Requirements

Direct raw materials are those materials that will be used for the

production while indirect are those materials that would still exist even

without the production but indirectly part of the activities. What raw

materials will go directly or indirectly into the production of your

goods? Are you assured of continuous supply of all your direct

material requirements? For each type of direct material, how much will

you need for each unit you intend to produce?

Examples:

Table 2.3 Direct Raw Material Requirements

Direct Materials Cost per unit Unit Quantity Total cost
needed
Seeds 750 Can 2 1500.00

Fertilizers 9 kg 19 171.00

Pesticides 100 pack 1 100

Table 2.4 Indirect Raw Material Requirements

Direct Materials Cost per unit Unit Quantity Total cost
needed
Knife 20 pc 1 20.00
Knapsack 3,500 pc 1 3, 500.00
sprayer

g. Direct Labor Requirements

This reflects the number of direct labors required for the operation.

How long does it take to complete the step or activity? How many people will

you need to complete each step or activity? How much are you going to pay

11
 your employees? Are you going to give any salary increases in the next three

years?

Table 2.5 Direct Labor Requirements

Direct Labor Cost per unit Unit Quantity Total cost
needed
Land Preparation 230 MAD 3 690.00
Drainage canal 150 MD 2 300.00
establishment
Fertilization 75 application 2 150.00
Pest Control 75 application 3 225.00

h. Administrative expenses

Administrative expenses must also be clearly computed. These

include salaries and wages for the hired labors and management,

office supplies, rent for land, buildings, machineries, utilities for water

and electricity, Depreciation of assets, repair and maintenance, etc.

Example:

Table 3.2 Administrative expenses

Particulars 1st Cropping
Salaries and wages(refer to direct and
indirect labors and other manpower
requirements)
Office Supplies
Rent
Utilities
Depreciation
Repair and Maintenance

12
III. Organization Plan

This section discusses the legal form of business. This also includes

organizational structure, and hiring or training of employees.

a. Form of Ownership

It could be in single proprietorship, partnership, cooperative, or

corporation.

b. Organizational Structure

This is in the form of a diagram showing the different personnel

involve in the business. Marketing, production, finance, and

administration activities of the business should be considered. You

cannot do everything so you will need to hire people to do the different

tasks associated with these functions. In marketing, who will sell your

products? Who will deliver products to customers or distributors? In

production, who will do the production activities? In finance, who will

take charge of the financial aspect of the business? In administration,

who will take care of personal matters?

c. Personnel Functions

After identifying manpower requirements, describe their jobs to be

performed, number of persons needed, compensation, and qualifications.

13
IV. Financial Plan

This focuses on the viability of the business. This includes fund source, total

production cost, financial statements like income, balance sheet and cash flow to

determine the financial condition of your business.

a. Source of Funds

Example: The business will need Php 23,237.50 to operate. The

proponent will avail a loan worth P20,000.00 from the AFNR

NegosyoDyante with a 0% interest rate to be paid after the 1st

cropping of the enterprise. The remaining money will be shouldered by

the owner.

b. Total Project Cost

Total project cost should include all the costs of resources used for the

production of good or service. If the land is owned it should be valued according

to its opportunity cost. It may refer to the value of the land if such will be rented

by somebody with the same purpose. If the owner will be the manager/farmer

then he should also consider his cost. If at the same time, the owner could have

earned something if given a chance to be employed in other firms or company,

the same value should be considered as part of his management fees. In the

same manner, the capital to be used in the business will also have its

opportunity cost which is the interest in the banks. If the bank offered an interest

14
 rate of 10% per annum and the capital is intended to be used for less than a

year, interest on capital should be prorated.

Table 4.1.Summary of Production Cost

Description Amount %Share

(Php)

Labor requirements 3, 746.00 16.12

Supplies and materials 1, 894.00 8.15
Tools, Equipment and Others 17, 597.50 75.73

Total 23,237.50 100%

Data Reference: Barcelona, C., Cucumber Enterprise report,2010.

Table 4.2.Details of Labor cost

Description Unit cost Unit Quantity Total (Php)

Land Preparation
Plowing 230 MAD 2 460.00
Harrowing 230 MAD 1 230.00
Drainage
Drainage canal 150 MD 2 300.00
Establishment and
Maintenance
Staking 75 half day 2 150.00
Planting 150 MD 1 150.00
Watering 38 Application 5 190.00
Thinning 75 half day 1 75.00
Trellising 150 MD 2 300.00
Weeding 75 half day 3 225.00
Pruning 75 half day 1 75.00
Fertilizer Application 75 application 2 150.00
Spraying 75 application 3 225.00
Harvesting 38 cycle 32 1, 216.00

Total 3, 746.00

Data Reference: Barcelona, C., Cucumber Enterprise report,2010.

15
Table 4.3.Details of Supplies and Materials

Description Unit cost(Php) Unit Quantity Total (Php)

Seed 750 can 2 1,500.00

Inorganic Fertilizer
Ammonium Sulfate 9 kg 19 171.00
Empty sack 13 pc 6 78.00
Insecticide
Malathione 45 pack 1 45.00
Karate 100 pack 1 100.00

Total 1,894.00

Data Reference: Barcelona, C., Cucumber Enterprise report,2010.

Table 4.4.Details of Tools, Equipment and other Investment cost

Description Unit cost(Php) Unit Quantity Total (Php)

Grass hook 120 pc 1 120.00

Slashing bolo 100 pc 1 100.00
Shovel 180 pc 1 180.00
Bamboo post 5 pc 333 1,665.00
Twine
Atlas twine 170 roll 1 170.00
Black nylon 80 kg 3 240.00
Transportation cost 1, 650 1,650.00
Knife 20 pc 1 20.00
Knapsack Sprayer (rented) 30 application 3 90.00
Soil Analysis 150 sample 1 150.00
Management Fees 3,500 month 3.5 12,250.00
Land Rent 125 month 3.5 437.50
Contingency 150 month 3.5 525.00

Total 17, 597.50

Data Reference: Barcelona, C., Cucumber Enterprise report,2010.

16
c. Projected Income Statement

The projected income statement is the estimated income if the

enterprise will be implemented. This summarizes the revenues, expenses,

and the net income. Revenues are the total value of your product before

subtracting all the expenses incurred. It is also called gross income.

Expenses are the total cost of producing the product. If the enterprise

purchases an asset, depreciation should be included. Net Income is the

difference between total Revenues and total Expenses. The heading of the

income statement contains the name of the enterprise, name of the financial

statement being prepared, and the accounting period or the period covered

for the preparation of the financial statement. An example is illustrated below.

CBB Cucumber Enterprise

Projected Income Statement
For the 1st cropping ended February, 2009

Revenues/ Sales
Class A Php44, 299.00
Class B 11, 504.00
Class C 2,211.00

Total Revenues 58, 014.00

Expenses
Labor 3, 746.00
Supplies and Materials 1, 894.00
Tools, Equipment and other Investment cost 17, 597.50

Total Expenses (23, 237.50)

Net Income Php34, 776.50

17
d. Projected Cash Flow Statement

This is another financial statement wherein it shows the financial

capacity of the enterprise in terms of cash. It specifically focuses on the cash

inflows and cash outflows transaction of the enterprise. Cash inflows like the

initial investment, net income, etc. Cash outflows are those transactions like

purchases of raw materials, assets like machineries, equipment, payment of

loans, and others. These are taken from the three major farming activities ,

that is, production, investment, and financing activities. The heading of the

statement is similar to that of income statement. Consider the following

example.

CBB Cucumber Enterprise

Projected Cash Flow Statement
For the 1st cropping ended February, 2009

Cash Inflows
Revenues Php58,014.00
Investment by owner 3, 237.50
Loans 20, 000.00

Total Cash Inflows 81, 251.50

Cash Outflows
Purchases of Raw materials 1, 894.00
Purchases machineries 0.00
Purchases of equipment, tools&others 17, 597.50
Withdrawals 0.00
Payments of Loans 10,000.00
Payments of Labors 3, 746.00

Total Cash Outflows 33, 237.50

Net Cash flows( Total In- Total Out) Php48, 014.00

Add: Cash Balance beginning _____ 0.00
Cash Ending Php48, 014.00

18
 e. Projected Balance Sheet

Balance Sheet summarizes the financial condition of the business at a period

of time. Its purpose is to estimate net worth or owner equity by valuing & organizing

asset & liabilities. It is a systematic organization of everything ―owned‖ and ―owed‖

by a business or individual. The balance in a balance sheet comes from the

requirement that the ledger be in balance through the basic accounting equation of:

Assets= Liabilities + Owner Equity

Two (2) Concepts in Measuring Financial Position of a Business

1. Solvency—measures the liabilities of the business relative to the amount of

owner equity invested in the business.

 It provides an indication of the ability to pay off all financial obligations

or liabilities if all assets were sold.

 It measures the degree to which assets are greater than liabilities.

 If assets are not greater than liabilities, the business is insolvent & a

possible candidate for bankruptcy proceedings.

2. Liquidity – measures the ability of the business to meet financial obligation

as they come due w/o disrupting the normal operation of the business.

 It measures the ability of the business to generate cash in the amounts

needed and at the time it is needed.

19
 It is also imperative to familiarize the three major parts of a balance sheet.

A. Assets—has value for one or both of two reasons:

1. It can be sold to generate cash.

2. It can be used to produce other goods that in turn can be sold for cash at

some future time.

a. liquid assets—goods that have already been produced such as grain, can

be sold quickly and easily without disrupting future production activities.

b. Current assets—the more liquid assets, w/c will either be used up or sold

within the next year as part of normal business activity.

c. Noncurrent assets—the opposite of current assets e.g. machinery,

equipment, breeding livestock, buildings & land.

d. Intermediate assets—defined as less liquid than current assets and with a life

greater than 1 year but less than about 10 years.

Ex.: machinery, equipment, perennial crops, breeding livestock

e. Fixed assets—are the least liquid and have a life greater than 10 years

Ex.: Land and Buildings

B. Liability (ies) – an obligation or debt owed to someone else. It represents an

outsiders’ claim against one or more of the business assets.

20
a. current liabilities—are financial obligations that will become due & payable

within one year form the date of the balance sheet, and will therefore cash

be available in those amounts within the next year. ex.: accounts payable

b. noncurrent liabilities—include all obligations that do not have to be paid in

full within the next year.

c. Intermediate Liabilities—debt obligations where repayment of principal

occurs over a period of more than 1 year & up to as long as 10 years.

Ex.: loans where the money was used to purchase machinery & breeding

livestock

d. Long Term Liabilities—debt obligations where the repayment period is for a

length of time exceeding 10 years.

Ex.: Farm mortgages & contracts for the purchase of land.

(Mortgage- a legal agreement by which a lender receives the right to acquire a

borrower’s property to satisfy a debt if the repayment schedule is not met.)

C. Owner Equity—represents the amount of money left for the owner of the

business should the assets be sold and all liabilities paid as of the date of the

balance sheet. It is also called net worth.

21
 CBB Cucumber Enterprise
Projected Balance Sheet
For the 1st cropping ended February, 2009

ASSETS
Cash -------------------------------------- Php48, 014.00
Noncurrent assets ------------------------------------- 0.00

Total Assets -------------------------------------- 48, 014.00

LIABILITIES
Current Loan Payable ----------------------------------------- 10,000.00

Total Liabilities ---------------------------------------------- 10,000.00

OWNER’S EQUITY
Initial Investment -------------------------------------------- 3, 237.50
Net Income --------------------------------------------- 34, 776.50

Total Liabilities and Owner’s Equity ---------------------------- Php48, 014.00

f. Financial analysis

1. Return on Investment(ROI)

Return on investment (ROI) measures the percentage return of the

owner’s investment or the amount earned per 100 peso invested. ROI acceptable

value is equal or greater than the lending rate of the banks. If the average lending

rate of banks 24% per month, then ROI should be equal or greater than this value in

1 year period. It means that the higher the ROI the better. It is computed using the

following formula:

ROI = [Net Income/ Total Cost of Production] x 100

22
 Example:

ROI = Php34, 776.50 x 100

Php23, 237.50

= 149.66 %

This means that in every 100 peso invested by the owner, the

return is almost 150 pesos This implies that owner’s investment earns

nearly doubled.

2. Liquidity Analysis

a. Working capital

It measures the ability of the business to generate cash in the

amounts needed and at the time it is needed. This amount could be

used for enterprise’ sustainability. It is measured by deducting current

liabilities from current assets. Hence,

Working Capital = Current Asset- Current Liabilities

= Php48, 014.00- Php10, 000.00

= Php38, 014.00

3. Solvency Analysis

This measures the relative relations among assets, liabilities &

equity. It is a way to analyze the business debt & to see if all liabilities

could be paid off by the sale of all assets. There are three ways we

can measure solvency, debt/asset ratio, equity/asset ratio, and debt/

equity ratio. For simplicity, we will just use debt to asset ratio( D/A).

D/A ratio measures what part of total assets is owed to lenders and

23
 should have a value of less than 1.0 and even smaller values are

preferred. Thus,

D/A = Total Liabilities

Total Assets

= Php10,000/ Php48, 014.00.00

= 0.21

This means that only 21% of the total assets will be owed to

lenders and 79% will be owned by the proponent at the end of the

cropping.

g. Break-Even Analysis

Break –even analysis measures the enterprise’ ―no gain, no

loss‖ condition. This would serve as a guide for the manager

especially farmers when would be the time that he is still safe to

continue the operation. This analysis includes the break-even volume

and break-even price.

4. Break –even Price(BEP)

The BEP measures the output price needed to just cover all

costs at a given output level. It is computed by dividing total cost of

production by the expected yield. Hence,

BEP = Total cost of production

Expected Yield

24
 Example:

BEP = Php23, 237.50

2,350 kg

= P9.89/kg

This means that the enterprise can have the break-even at a price of

P9.89/ kg. At a given price, the business is in ―no gain, no loss‖ condition. This

does not mean that the business owner will cease his production if break-even

exists. Instead, this sends signal to the farmer that if the price is P9.89/kg, he

must have an output of 2350kg. This implies further that for him to earn profit at

a given price, his production must be higher than the expected yield.

5. Break- even Volume (BEV)

The BEV is the yield or volume of production necessary to cover all

costs at a given output price or market price. It is computed by dividing the total

cost of production by the expected product price. Hence,

BEV= Total cost of production

market price

Example:

BEV = Php23, 237.50

Php15.00/ kg

= 1,549.16 kg*

This means that the volume of production where ―no gain, no loss‖ condition

exists is 1, 549.16 kg. If the BEP sends signal to the farmers at what price he is

25
at break-even, the BEV also tells the farmer at what volume he is at break-even.

This also dictates the farmer to produce higher than the break-even volume for

him to earn profit.

26
 WORKPLAN

This section indicates the schedule of activities to be done when the enterprise is to

be implemented. This could be daily, weekly, or monthly. If you will use short-term

crop, weekly work plan is recommended.

27
 SOURCES/ REFERENCES

Costales et al. (2000), Economics: Principles and Applications. JMC Press, Inc.
Quezon City Philippines

Drummond, H.E. & Goodwin, J.W. (2001), Agricultural Economics. Prentice –

Hall, Inc. New Jersey

Fajardo, F.R. (1999) Agricultural Economics , Rex Printing Co.

Fajardo, F. R. (1997). Management. Rex Bookstore, Inc. Manila, Philippines

Jones, G.R. and George, J.M. (2003), Contemporary Management ,3rd edition by
McGraw-Hill.

Kay, R.D. and Edwards, M.E.(1999), Farm Management , 4th edition, Mcgraw-Hill.

Rafael M. Santos Jr.(2005), Fundamentals of Accounting .

UP Institute for Small Scale Industries, (2007),Small Enterprises Research and

Development Foundation, Inc., revised edition.

Weygandt,J.J., et al. (1996), Accounting Principles. John –Wiley & Sons,

Unpublished Report

Barcelona, C.B. Cucumber Enterprise Report. 2009

28
 ENTERPRISE PLAN OUTLINE

I. Executive Summary
Project Title: _________________________________
Name of the Proponent: _______________________
Location: ___________________________________
Total project Cost: ___________________________
Source of Fund: _____________________________
Project Duration: ____________________________
II. Marketing Plan
A. Product
B. Place of Distribution
C. Promotion
D. Price
E. Location

III. Technical Plan

A. Production Process
B. Field/ Building Lay-out
C. Waste Disposal
D. Property and Equipment
E. Production Schedule
F. Direct Raw Material Requirements
G. Indirect Raw Material Requirements
H. Direct Labor
I. Administrative Expenses

IV. Organizational Plan

A. Form of Ownership
B. Organizational Structure
C. Personnel Functions

V. Financial Plan
A. Source of Funds
B. Total Production Cost
C. Projected Income Statement
D. Projected Cash Flow Statement
E. Financial Analysis
a. Return on Investment
b. Liquidity Analysis
c. Solvency Analysis
F. Break-Even Analysis
a. Break-Even Price
b. Break-Even Volume

29
VI. Appendices
A. Work Plan

30