Any business plan won't survive its first

encounter with reality. The reality will

always be different. It will never be the
plan.

Jeff Bezos
What’s on your mind?
Water Break..
We’ll be back after 5 minutes.
Any business plan won't survive its first
encounter with reality. The reality will
always be different. It will never be the plan.

Jeff Bezos – AMAZON

Developing a
Business Plan
Presented by: Gina M. Oloresisimo, MBA
Topic Outline

1. The users and purpose of writing

a business plan
2. Parts or Content of a business
plan.
3. Purpose of a Business Plan
4. Selecting a product to sell or
service to offer.
Business Plan
• It is a written document
describing the nature of the
business, the sales and marketing
strategy, and the financial
background, and containing a
projected profit and loss
statement.
Business concept
• It is an idea for a business that
includes basic information
such as the service or product,
the target demographic, and a
unique selling proposition that
gives a company an advantage
over competitors.
A business concept may involve
a new product or simply a novel
approach to marketing or
delivering an existing product.
Once a concept is developed, it
is incorporated into a business
plan.
Product Opportunity
It exists when there is a gap
between what is currently on
the market and the possibility for
new or significantly improved
products that result in emerging
trends.
Opportunity recognition
It is relevant to an entrepreneur, it is the
active, cognitive process (or processes)
through which individuals conclude that they
have identified the potential to create
something new that has the potential to
generate economic value and that is not
currently being exploited or developed, and
is viewed as desirable in the society in which
it occurs (i.e. its) development is consistent
with existing legal and moral conditions.
Users of Business Plan
A business plan serves:
1) Entrepreneur, who must a
navigational course
2) Investors and “cautious” financiers
3) Managers and staffs of the
organization so they will know the
strategies and programs of the
enterprise.
Users of Business Plan
A business plan serves:
1) Entrepreneur, who must a navigational
course
2) Investors and “cautious” financiers
3) Managers and staffs of the organization
so they will know the strategies and
programs of the enterprise.
Parts of Business Plan
The process of writing down what is involved in bringing your
idea to reality requires dealing with why, what, who, how,
where, when, and how much of your venture.

Writing a business plan forces you to take a deep look at your

idea and how you will turn it into a business. Your business
plan will typically include the following:
I. Business Description
A. Vision & Mission Statement
B. Business Overview
C. Products and Services
II. Market Analysis
A. Market Characteristics
B. Target Customer Profile

III. Competitor Assessment

IV. Marketing Plan

A. Products and Services
B. Pricing
C. Distribution
D. Promotion

V. Operating Plan
A. Ownership and Management –
organizational chart
B. Resources and Production
C. Legal Issues
VI. Financial Plan
Financial statement

VII. Executive Summary

The overview of your entire business
plan and should briefly highlight the
most important parts of the plan.
Purpose of Business Plan
1) A business plan helps provide
direction by making you discuss where
you want to take the venture and
describe what you want out of it.
2) A business plan provides structure to
your thinking and helps you make sure
you have covered all of the important
areas.
3) A business plan prompts you to
think about your future.

4) A business plan will help you

communicate your idea to
stakeholders.
What’s on your mind?
Choosing a Product
To succeed as an entrepreneur, you
must develop the ability to select and
offer the right products or services to
your customers in a competitive market.
More than any other factor, your ability
to make this choice will determine your
success or failure.
The most important thing you can
do before deciding what to sell is to
think. And the more you think
about a product or service before
you bring it to market, the better
your decisions will be.
To make a product successful
You must be personally and emotionally
committed to its success.

Once you have got a product or service in mind,

you need to begin with a self-analysis:

1. What kinds of products do you like, enjoy,

consume, and benefit from?
2. Would you buy it and use it yourself?
3. Would you sell it to your mother,
your best friend, your next-door
neighbor?

4. Is this a product or service that

you intensely desire to bring to the
marketplace?
Then analyze the product or service from
the customer's point of view:

1. What does the product achieve, avoid or

preserve for the customer?
2. How does the product improve your
customer's life or work?
3. What kind of customers will you be
selling the product to?
Bottom-line questions about the product:

1. Is there a real demand for the product at

the price you'll have to charge?
2. Is the demand large enough for you to
make a profit?
3. Is the demand concentrated (intensed)
enough so you can advertise, sell and
deliver the product at a reasonable
expense?
There are a series of additional questions you
need to ask before you make a final decision on a
new product or service offering.
1. Is there a real need for the product or
service in today's market?

2. Is your new product or service better

than anything else currently available?

3. What are the three ways that your

product is superior to your competition?
3. Is your product lower-priced or of
better quality than anything else
that is available?

4. Do you think you could become

the number-one supplier in the
market for this product or service?
That’s all for today…
Thank you for listening 

Any questions???
 Executive Summary
• A Business Plan identifies key areas of your
business so you can maximize the time you
spend on generating income.
• Key investors will want to look at your

Building a Business Plan

Business Plan before providing capital.
• A Business Plan helps you start and keep your
business on a successful path.
• You should prepare a Business Plan, although,
in reality, many small business owners do not. 35
Business Plan Format
• All sample business plans are complete and Incorporates all of the sections that
bankers and investors hope to see. Each business plan includes the following key
sections:
• Executive Summary: A quick and brief introduction to your business plan. It includes
a summary of your business, the problem that it solves, your target market, and
financial highlights.
• Company: Details about your company ownership, where your business based, how
large the company is, what you do, and what you desire to achieve.
• Market Analysis: Describes the industry you plan to sell your product or service in,
including statistics to support your claims.
• Products and Services: Reviews what you sell and what you’re offering your clients.
How it will rival other businesses selling the same or similar products and services.
• Marketing plan: Promotional strategy to introduce your business to the world and
drive sales.
• Strategy and Implementation: Provides the details of how you turn strategies and
plans into actions in order to achieve key objectives and goals.
• Management Team: Describes your management team, staff, resources, and why
they’re the right team to make the business a success.
• Financial Plan: Composed of four financial statements: the income statement, the
Executive Summary: A quick and brief
introduction to your business plan. It
includes a summary of your business,
the problem that it solves, your target
market, and financial highlights.
Quiz No. 2
1. It is an idea for a business that includes basic
information such as the service or product,
the target demographic, and a unique selling
proposition that gives a company an
advantage over competitors.

2. It is a written document describing the nature

of the business, the sales and marketing
strategy, and the financial background, and
containing a projected profit and loss statement.
3. It exists when there is a gap between
what is currently on the market and the
possibility for new or significantly
improved products that result in
emerging trends.

4. The most important thing you can do

before deciding what to sell is
_____________.
5. It is the active, cognitive process
(or processes) through which
individuals conclude that they have
identified the potential to create
something new that has the
potential to generate economic
value.
6. Who are the users a business plan?
(5pts)
7. Name the purpose of Business Plan
(5pts)
8. What are the first three chapters of
business plan? (5pts)