Business Planning
What is the video about?
What problem occurred when the
students took the special examination?
Questions:
What do you think the students should
have done after they talk to the
professor?
How is the video related in starting a
business?
What is a Business Plan?
A business plan is the blueprint of individuals,
organizations or groups who would like to engage in
business
To some, business plan is considered as their bible
A business plan is a document that defines in detail a
company's objectives and how it plans to achieve its
goals. A business plan lays out a written road map for
the firm from marketing, financial, and operational
standpoints. Both startups and established companies
use business plans.
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Purposes of a Business Plan
Presents the general picture of the enterprise
What will the business be?
What goods can be sold?
Who will manage the business?
Provides guidance for investment decisions and capital expenditures
What will be the business like?
What kind of business will be established?
Where would be the materials came from?
Will you be needing a start-up capital?
Can you look for readily made resources that you can sell to your
market?
Purposes of a Business Plan
Serves as guide on the implementation of
the plan for business including the
marketing, production, organizational and
financial aspects of the enterprise
Serves as selling tool for encouraging
investment and financing
Essential question that have to be
answered when making a business plan
What problem does the product or service solve? What need
does it fill?
What niche will it address?
Who are the customers of the enterprise? How will the
enterprise sell its products or service to them?
What is the size of the market to be served?
How will the business make money?
What other products pose competition to the business and
how will the enterprise maintains its competitive advantage?
Essential question that have to be
answered when making a business plan
How will the enterprise adjust its systems of management as
the business grows?
Who will run the company and what are their capabilities to
manage the business?
What are the risks and threats confronting the business and
what are the resources needed?
What will be the future financial requirement of your
business?
Parts of a Business Plan
Executive summary
Introduction
Product or service description
Industry analysis
Market analysis
Marketing plan
Production or operational plan
Organizational plan
Financial plan
Contains a brief description of each
part of the business plan
The whole picture of the proposed
business must be clear enough to
Executive catch the interest of potential
investors or financers
Summary
All the parts of the business plan
should be presented in this part in at
least one or two paragraphs each
The first paragraph should
generally include your
business name, location, what
product or service you sell,
and the purpose of your plan.
Highlight important points such
as projected sales and profits,
How to unit sales, profitability, and keys
to success
write an
executive
summary
Include a bar chart that shows
sales, gross margin,and profits
for the next three years. Cite and
explain those number in the text
Covers the compelling reason for selecting a
particular product/service proposed
Directs the reader to main contents of the
Introduction business plan
Should include the idea, rationale the
problems being addressed, value
proposition, and the potential benefits to the
investors/financers
business concept,
available opportunity,
type of industry where the business concepts
belongs,
Introduction the target market,
presents a
clear the key people involved
explanation of
the following
unique selling proposition
the financial requirement
Product or Service
Description
Tackles the characteristics and the
details of the proposed
product/service.
The name of the product
Full description of the
product/service
Includes properties, features,
characteristics, possible sources of
raw materials
Industry Analysis
Shows a situational presentation, at
least three to five years of current
data, trends and latest updates of the
industry where the proposed business
idea belongs
Include the group of businesses in the
same orientation, target market,
understanding the gap or need of the
industry, the size, growth, structure
and other factors that may contribute
to the success of industry
Market analysis
Involves the search for, and analysis
of, data that can be used to identify,
isolate, describe and quantify a
given market or group of customers
The size characteristics and
direction of market movement are
the basic areas of interest
Define objectives of the study (questions to be
answered)
Who is your target market?
What is the size of the market and your production
capacity?
What will be the nature of operation and industry
Steps in orientation of the business being planned?
Market How much sales is being projected?
Analysis What is the price of the product/service being
offered?
How will the product reach the customers in the
most efficient manner?
Conduct a situational analysis
of the market. This step seeks
the background information on
the relationship between the
Steps in product or service and the
Market market it wishes to serve. Must
Analysis interview key people to
generate information for a
more reliable result.
Collect secondary data if
necessary. These are published
Steps in materials that also rely on
Market primary data
Analysis
Marketing Plan
A comprehensive document or
blueprint that outlines a
business’ advertising, and
marketing efforts for the
coming year.
Flyers?
House to house campaign?
Social media?
Marketing Plan
Describes the business activities
involved in accomplishing specific
marketing objectives within a set
time frame
Identifies all you need to know
about your target customers, how
your product will reach them, and
how you will maintain their loyalty
Guided by the P’s of marketing
Production or operational Plan
Lays down the
specifics of operating Comprise of 4M’s of
or running the business production
.
Organizational Plan
This details the human resource complement of the
business.
Describes the legal form that the business will take:
sole proprietorship, partnership or corporation
Financial Plan
Shows the financial plan or funding
requirement of the business
Will the business be financed 100% by
the owner?
Will some of the funds come from the
bank or investors?
Shows the financial projections of the
business from the start up stage up to the
time it registers positive income
Answer this:
What is the importance of writing a
business plan?
How can you relate the lesson that
we have in your life as a student?
