Business Planning

Entrepreneurial Process
•  The winning idea (opportunity identification)
•  The roadmap (business plan)
•  The winning team (organization)
•  The funders (equity / debt)
•  Strategic partners (suppliers, market tie-ups)
•  Marketing presence (word-of-mouth,
advertising)
•  The liquidity event (cash flow management)
Business Planning

Major Components of the Business Plan

Technical Plan

Marketing Plan

Financial Plan Organizational

Plan
 Outline
Business of
Planning Final Report
•  Cover / Title Page
•  Executive Summary
•  Vision - Mission Statement (VM vs. Personal GPC)
•  Description of Product / Service (The Opportunity)
•  Macro Environmental Assessment (PESTE)
•  Micro Market Assessment (Customer, Location,
Competitors)
•  Internal Assessment / Opportunity Screening
•  S W O T Analysis
•  Marketing Plan & Strategy (Innovations / USPs)
•  Operational Plans
•  Organizational Structure
•  Financial Projections / Analysis
•  Critical Risks
•  Conclusion / Mission Statement
Business Planning

The importance of writing a

business plan is not the final
paper but the learning that is
gained from writing it.
Business Planning

Executive Summary
•  Start with an abstract of the business plan
(The perceived opportunity, general
description of product or service, target
market, location, people who will be
involved, estimated investment
requirement)
•  The final summary will differ from the initial
abstract
Business Planning

Begin with
the end in
mind
Develop a
Vision – Mission
What will the
Statement
Enterprise be in the
Future (Vision)

Is your person How do you see

vision and goals yourself
aligned with the
Company vision? contributing to
that Vision?

Objectives
Business Planning
The Many Sources Of Opportunity

Macro- Industry &

Environmental Market
Sources Sources

Consumer
Talents, Hobbies,
Preferences,
New Knowledge Interests, Skills,
Piques &
& Exposure
Perceptions

Opportunities
Opportunities from
from the
the Future
Unexpected
Business Planning

—  Location

—  Customers

—  Competition
Business Planning

Industry, Customer, Competitor Analysis

•  General description of industry, trends,
economic indicators
•  Profile of target customer (be specific)
–  Customer Persona
•  Identify industry players (competition)
(description of their product or service,
location, present market niche, pricing,
market strategy)
•  Competitors Profile Matrix
Business Planning

Identify Critical Factors

Weighted
Critical Success Factors Weight Rating Score
Reputation & image 0.14 3 0.42
Facilities 0.12 3 0.36
Accessibility 0.10 4 0.40
Competitiveness 0.14 4 0.56
Qualification of Staff 0.12 3 0.36
Service-orientation 0.05 3 0.15
Market-orientation 0.05 3 0.15
Product Quality 0.07 4 0.28
Advertising & Promotions 0.05 4 0.20
Financial Position 0.02 3 0.06
Management Expertise 0.02 3 0.06
Involvement in Community Service 0.02 2 0.04
TOTALS 1.00 3.24
Business Planning

Ranking of Competitors
Company A Company B
Critical Success Factors Wgt Rtg Score Wgt Rtg Score
Reputation & image
Facilities
Accessibility
Competitiveness
Qualification of Staff
Service-orientation
Market-orientation
Product Quality
Advertising & Promotions
Financial Position
Management Expertise
Involvement in Community Service
TOTALS
Business Planning
Twelve Opportunity Screens
Relevance to the Vision, Mission & Objectives of the Enterprise

Resonance to Values

Reinforcement of Existing Enterprise Strategies

Revenues

Responsiveness to Customer Needs & Wants

Reach

Range

Revolutionary Impact

Returns

Relative Ease of Implementation

Resources Required
Risks
 Business Planning
Internal Analysis

• Assess performance vis-à-vis targets

and benchmarks
•  Assess Organizational Capabilities
•  Assess Resources and their allocation
Strengths and
•  Assess Marketing, Operations,
Weaknesses
Human Resources and Finance
•  Assess Management Processes
•  Assess Teams and Individuals
• Assess Top Management and
Strategic Fit
Strategic
Business Planning
Planning Process Using
SWOT Analysis
Internal Strengths Weaknesses
Environment
Assessment
External
Environment
Assessment

Opportunities SO WO
1. Expand area / sector / Industry 1. Niche
coverage 2. Linkaging or networking
2. Intensify existing operations 3. Subcontracting
3. Integrate backward or forward 4. Anchor projects

Threats ST WT
1. Diversify into other services or 1. Retrench
products 2. Merge
2. Consolidate 3. Withdraw / close shop
3. Contingency mechanisms

Strategic Options: SO / ST / WO / WT
Business Planning

Marketing Strategies
•  Prepare Customer Profile; List down
names of target market & their perceived
buying habits
•  List down responses to market research
•  Address the 4Ps of marketing (product,
price, place [location, distribution],
promotion)
•  Identify your differentiating factor
•  Include a 5th P: Purpose
Business Planning
Business Planning

CREATING
PURPLECOWS
INBLUE OCEANS

REVOLUTION ary
products
izing
markets
Business Planning

Marketing Strategies

Value Creation Basics

Why consumers buy and why they buy what they buy
Business Planning

Operational Plans
•  List down & describe Steps Description
the step-by-step
production or 1
service process,
2
from procurement of
raw materials up to 3
the finish product
and delivery stage 4
•  Draw process flow
5
diagram
Business Planning

Other Technical Tables

•  Production / Service Schedule
•  Direct material costs/ purchasing
schedule
•  Indirect materials requirement/ cost /
purchasing schedule
•  Manpower requirements (number of
personnel, salary rates)
•  Cost of production or service
Business Planning

ORGANIZATION STRUCTURE
ü Legal Organization
SEC, DTI
ü Government Mandatory Registration
BIR, SSS, Pagibig, Philhealth
ü Plantilla
Business Planning

Organizational Plan:
Who will do what when
Functions Qualifications Number of
People
Marketing

Production /
service
Finance

Administration

Outsourced
services
Business Planning

Financial Plan:
Putting it all together
Total Project Cost
Debt Equity Total

Pre-operating expenses

Fixed investment

Working capital (for one

cycle/period)
Total Project Cost

Proportion of debt-equity
Business Planning

Other Financial Tables

•  Projected Income Statement
•  Projected Cash Flow Statement
•  Projected Balance Sheet
•  Financial Ratios
Gross profit margin, net profit margin
Return on equity, return on investment
Current ratio, quick ratio, debt equity ratio
Inventory turnover
Business Planning

Critical Risk Factors

•  Using the Competitors Profile Matrix &
SWOT, identify key result indicators and
examine extent of risk.
•  List down strategies that can mitigate the
level of risk
•  Timing is always a critical factor; review
developmental plan to ensure proper
timing
Business Planning

Conclusion & Mission Statement

•  Summarize the marketing, technical,
operational & financial plans
•  Consolidate in a mission statement
•  End with a powerful tag line for the
business plan