ENTREPRENEURIAL MANAGEMENT

The Business

YTIC NACOOLAC FO YTISREVINU

Plan
Prepared by: Mr. Jahdiel Jacutan
Introduction
Venturing into a new business or doing any
form of innovation in a business
organization demands or necessitates a
plan. A business plan that is well-
researched and well-done is by itself
insurance against the elusive success
that every entrepreneur is looking
forward to.

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Objectives:
1.Identify the importance of business
planning and its advantages, as well as the
step by step procedure in preparing a
business plan.

2.Enumerate the factors and other

necessities on how to manage and start a
business successfully.

The Business Plan

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Organizing
the
Enterprise,
Planning the
Enterprise
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Concept of a
Business Plan

“A well-written business plan is one that contains all

information necessary for the financing source to make a
decision even without taking the entrepreneur.” –
Anonymous
Concept of a
Business Plan
David E. Gumpert’s concept and definition of
a Business plan

A business plan is a document that convincingly demonstrates the ability

of a business to sell its product or services to make a satisfactory profit
and be attractive to potential backers. A better definition: A business
plan is a selling document that conveys the excitement and promise
of your business to any potential backers or stakeholders.
Concept of a
Business Plan
Other definition of a Business plan from the
books of Entrepreneurship
Business planning should be realistic. This means planning is based on
the available resources and is responsive to the needs of the community.
It is also:
What to do

How to do it
Planning
When to do it

What to expect in the future

Business planning involves the attainment of goals and the ways to

accomplish such goals.
Principle of
Planning
Planning must be realistic.
It must be based on the available resources: human,
financial, and physical resources

Planning must be based on felt needs.

The objectives of an entrepreneur should fit the needs
of the people in a community.

Planning must be flexible.

Resource needs and economic conditions change.
Planning should be adjusted to such changes to be
effective and relevant.

Planning must start with simple projects.

 01 02 03 04

Unplanned stage Budgeting system stage. Annual Planning Stage Strategic Planning Stage

At the start of the business, Eventually, the owner- The owner-manager drafts an As the business enterprise
the owner is busy looking for manager realizes the need to annual plan. He can use either becomes bigger, a long-range
funds, customers, materials, develop and use a budgeting top-down planning or bottom- planning is needed.

and equipment. His entire system. Estimated income is up planning. In a top-down

attention is devoted to the made to facilitate the orderly approach, he provides the goal
daily operation of his business function of the growing and let the employee comply
with it. While in a bottom-up
and his desire to survive. enterprise.
approach, he encourages his
employees to participate in
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planning the goals and
strategies.
Criteria of 1.The plan should state clearly its objectives.
2.The plan should provide measures for a satisfactory

Effective accomplishment of the objectives in terms of quantity,

quality, time, and cost.

Planning 3.The plan should state the policies, which should guide
people in attaining the objectives.
4.The plan should indicate what department or unit
would be involved in accomplishing the objectives. It
may or may not spell out the procedures for performing
the required work.
5.The plan should indicate the time, which should be
allowed for each activity. It may be necessary to
establish a target data for completing the activity.
6.The plan should specify the required resources and
their corresponding costs.
7.The plan should designate the officers who will be held
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accountable for the accomplishments of the objectives.
Why do 1.To project general picture of the business project;

we need a 2.To serve as a guide in implementing the business or

project;

business 3.To serve as a major input to investment decisions or

major expenditures;

plan? 4.To serve as a reference or guide to policy

formulation and development;
5.To serve as a guide for operational matters;
6.To serve as a reference for a bank loan or financing
purposes;
7.To determine/estimate the detailed technical and
financial requirements; and
8.To serve as an overall guide for the proponent or an
entrepreneur.
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 Outlines of
a Business
Plan
There are many books and literature
about the format of a business plan. Any
of them can be used as a guide. As a
general rule, however, the business plan
format should have at least four major
components, namely: the marketing
plan, technical plan, financial plan, and
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the organizational plan.
Sample
Format
From Hisrich and Peters
I. Introductory Page V. Production plan
A.Name and address of the business A. Manufacturing process (amount
B.Names and addresses of the principals subcontracted)
C.Nature of Business B. Physical plant
D.Statement of Financing need C. Machinery and equipment
E.Statement of the confidentiality report D. Names of suppliers of raw materials
II. Executive Summary VI. Marketing plan
III. Industry Analysis A. Pricing
A.Future outlook and trends B. Distribution
B.Analysis of Competitors C. Promotion
C.Market Segmentation D. Product of forecast
D.Industry forecasts E. Controls
IV. Description of Venture VII. Organizational Plan
A.Product A. Form of ownership
B.Service B. Identification of partners or principal
C.Size of Business shareholders
D.Office equipment and personnel C. Authority of principals
E.Background of entrepreneurs D. Management-team background
E. Roles and responsibilities of
members of organization
Sample
Format
From Hisrich and Peters

VIII. Assessment of risk

A. Evaluate weakness of business
B. New technologies
C. Contingency plan
IX. Financial plan
A. Pro forms income statement
B. Cash flows projections
C. Pro forma balance sheet
D. Break-even analysis
E. Sources and applications of funds
X. Appendix (contains back-up material)
A. Letters
B. Market research data
C. Leases or contracts
D. Price list from suppliers
Sample
Format
Outline of a Business Plan

Section 2: Financial Data

Cover sheet: Name of business, name of
A. Sources and Application of funding
principals, addresses, and phone numbers
B. Capital equipment list
Business goals
C. Balance sheet
Strategies
D. Break-even analysis
Table of contents
E. Income projections (profit and loss statements)
Section 1: The Business
a. Five-year summary
A. Description of Business
b. Detail by month for the first year
B. Product/Service
c. Detail by quarter for second, third, fourth, and
C. Market
fifth years
D. Location of Business
d. Notes of explanation
E. Competition
F. Cash flow projection
F. Management
a. Detail by month for the first year
G. Personnel
b. Detail quarter for second, third, fourth, and
H. Application and Expected Effort of Loan (if
fifth years
needed)
c. Notes of explanation
I. Summary
G. Deviation Analysis
H. Historical financial reports for existing business
a. Balance sheet for past five years
b. Income statement for past five years
c. Tax returns
Sample
Format
Outline of a Business Plan

Section 3: Supporting documents

Personal resumes, personal balance sheets,
cost of living budget, credit reports, letter of
reference, job description, letters of intent, copies
of leases, contracts, legal documents, and anything
else relevant to the plan.
Steps in
Business 1. Evaluate your personal resources and interests, and the

Planning resources of the community

2. Analyze your market

3. Choose a proper business location

4. Prepare a financial plan

5. Prepare a production plan

6. Prepare an organizational plan

7. Prepare a management plan

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Importance of
Business
Planning

Planning can eliminate business risk.

Planning can minimize the cost of

production.

Planning can detect the weaknesses of

the business operation.
Planning
and
Organizing
the
Enterprise
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 The Intricacies of
Enterprise Planning

01 02 03

Step 1: Idea generation Step 2: Informal Step 3: Analysis of the

and opportunity screening situation
identification
After generating so many ideas Resource analysis
The method used in this process and possible opportunities to be Environmental Analysis
is brainstorming. pursued, you should now select Values analysis
about 10 project ideas (from the
50 ideas you generated), which
interests you the most. Continue
the screening process until you
are down to three – the best
UNIVERSITY OF CALOOCAN CITY three.
Thank you for listening!