The Business

What is the
importance of
writing a business
Parts of a Business Plan
I. Executive Summary
II. Management and Organization
III. Product/Service Plan
IV. Market Plan
V. Financial Plan
 I. EXECUTIVE
This part can be found at the beginning
SUMMARY
of the plan but is the last to be
accomplished since this synthesizes the
whole plan.
This contains a brief introduction and
summarizes everything that is relevant
and important to the prospect business
audience.
These are the information needed to guide you:
 description of your proposed business and business model
description of the market opportunity you want to capture or
market problem the business solves
 reasons why this is an attractive business opportunity  key
distinctions or differentiators of your business versus competitors
 overview of the sales, marketing, and operations strategy and
plan
 description of your executive planning timeline
 overview of the projected financials containing revenues, cost,
profits, and assumptions of your business
II. MANAGEMENT AND
ORGANIZATION
 This part includes all the basic
information of your business.
This also describes the workflow
(organizational structure; the
background, experience and role of
each) of your business from the
highest position up to the lowest.
These are the information needed to guide
you:
 Company Name, Logo, and Address
 Vision and Mission Statements
 Key Personnel
 Organizational Chart
 Ownership Capitalization, Compensation,
and Incentives
 External Management Support
III. Product/Service Plan
This part describes the highlight of the
product or service offered to the
customers so that they will be
encouraged to patronize your product or
service.
It also explains how the products or
services will be accepted and carried by
the distribution channels.
These are the information needed to guide you:
 Purpose of your Product or Service
  Product’s/Service’s Unique Features
  Material Requirements and Sources of Supply
  Processing Equipment that will be Used to
Manufacture the Product or Render the Service
  Production or Service Process and Controls
  Distribution Logistics
  Regulatory and Other Compliance Issues
 IV. Market Plan
This includes your business
strategies, the target
market, value proposition of
your product or services that
may increase the company
sales (Chen, 2019).
These are the information needed to
guide you:
 Market Analysis
 Marketing and Sales Strategies
 Product or Service Characteristics
 Pricing Policy
 Sales Projection
 Market Analysis
This includes the process of how you
divide the total market into smaller
groups seeking similar needs and
wants (market segmentation) and the
characteristic analysis of the business
in relation to internal and external
factors. (SWOT Analysis)
 Strengths refer to strong attributes
or capabilities of the business that
SWOT Analysis, provide great advantage in exploiting
the business opportunity. Weaknesses
on the other hand, is a are poor attributes or deficiencies
popular tool to evaluate that give disadvantage to the
the internal environment business. Both strengths and
pioneered by George weaknesses are considered internal
Albert Smith Jr. and origins, meaning they are attributes
Ronald Christensen, two inside the business venture. On the
Harvard business other hand, opportunities are business
professors (Aduana, situations that must be exploited due
2016). SWOT stands for to their potential in terms of profit
Strengths, Weaknesses, and growth. Threats are possible
external factors that may harm the
Opportunities and
business. Both opportunities and
Threats.
threats are outside origins and are
attributes outside the business.
 Marketing and Sales Strategies
 These are also known as the product PUSH. These have
three key characteristics that allow to perform marketing
function of persuading customers to buy right away. (Go,
2010)
 1. Temporary – Sales promotions are conducted at short periods
creating a sense of urgency on the part of the customers.
 2. Better value – Sales promotions are used to create short-term
differentiation by offering a better product value.
 3. Beneficial – Sales promotions promote growth sometimes
even at artificial level.
Product/Service Characteristics
This includes value proposition of the
product/service. Value proposition
answers the question, why should your
customers buy from you and not from
other similar businesses? These contain
the convincing reasons that buyers
should see that will make them purchase
your products/services.
Pricing Policy
This part specifies the price of the
product/service. It must be noted that
quality and price cannot be separated in
marketing (Aduana, 2016). You must be
careful in setting the price of your
product/service considering the costs of
production, competitors’ pricing, and
customers’ perception.
Sales Projection
This is also called sales forecast or the
prediction of the amount of revenue
your company expects to earn at some
point in the future. This shows the
quantity of product sold or service
rendered and its corresponding amount
within a given period.
V. Financial Plan
This is a document containing your
current financial situation as an
entrepreneur and long-term monetary
goals, as well as tactics to attain those
objectives. You may create a financial
plan on your own or with the assistance of
someone who is knowledgeable about
handling finances such as certified
financial planner.
These are the information needed to guide you:
 Start-up costs requirements – These are expenses that you
will be needing during the course of creating a new business.
 Financial projections – These are estimates of your future
profits and expenses.
 Break-even analysis – This is a financial tool that will help
you determine at what stage (or period) your company will
start gaining profit.
 Budget – This includes the amount needed for business
operations as well as sources of such funds (equal shares or
through a creditor).