Unit 2: The Business Plan

Lesson 2: The Business Plan Contents (I):

Introduction, Executive Summary, and
Proponents

Contents
Engage 1
Introduction 1
Objective 2

Explore 2

Explain and Elaborate 3

Business Plan Introduction 3
The Business Concept and the Business Model 3
The Business Goals 4
The Executive Summary 5
The Business Proponents 9

Extend 10
Activity 10

Evaluate 11

Wrap Up 13

Bibliography 14
Unit 2.2: The Business Plan Contents (I): Introduction, Executive Summary, and
Proponents

Engage

Introduction

Fig. 1. Business Idea

Planning is a crucial part of deciding the best product or service that you will offer for your
customers. How can a business be established? What should an entrepreneur do to choose
the best product or service for his or her customers?

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Unit 2.2: The Business Plan Contents (I): Introduction, Executive Summary, and
Proponents

Objective
In this lesson, you should be able to discuss the different parts of a business plan.

DepEd Competency
Identify the market problem to be solved or the market need to be met.
(CS_EP11/12ENTREP-0a-1)

Explore

10 minutes
Choose a partner. Assume that you didn’t know each other well. Tell a short introduction
about yourself. Include your hobbies, interests, even your goals after ten years, your likes,
and dislikes. Then, answer the questions below.

Guide Questions
1. How did you introduce yourself to your partner?

2. What did you notice about how your partner introduced himself or herself to you?

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Unit 2.2: The Business Plan Contents (I): Introduction, Executive Summary, and
Proponents

3. Why is it important to have an introduction to every product or service that we have?

(i.e., books, research, etc.)

Explain and Elaborate

Business Plan Introduction

The business plan introduction serves as the “bird’s-eye view” of your plan. It is written as an
overview while not going into details. That’s what the remainder of the plan ought to do.
The introduction sets the tone of your business plan. The business plan introduction is
composed of two (2) to three (3) pages that covers the description of the business, the goals,
and why the business is a good venture to start.

There are two (2) main components of a business plan introduction: (1) the business
concept and model; and (2) the business goals.

Why is writing a business plan essential for an

entrepreneur?

The Business Concept and the Business Model

A business concept should have the essence of the business in a short but powerful
manner. It emphasizes the value of the product to be offered to the target customers who
would most likely buy it.

A business model is a formula on how the business plans to make money out of business.
There are four areas of moneymaking which the business model should address:

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Unit 2.2: The Business Plan Contents (I): Introduction, Executive Summary, and
Proponents

1. Raising revenue - What are the critical factors that cause the revenues to
materialize?
2. The cost of the enterprise products and other costs of doing business - How will
these costs be managed to ensure comfortable profits?
3. Major investments of the enterprise - Why will these investments give the
enterprise a competitive advantage?
4. Financing the investment - How will the enterprise fund its growth?

Why should you have measurable goals and

objectives in your business plan?

The Business Goals

The business goals show the long-term and future prospects of the enterprise. It is
composed of the vision, mission, objectives, key results area, and performance indicators.

As an entrepreneur, it is suggested that one should think of goals and objectives this way:
● Goals tell you wherever you want to go; objectives tell you precisely the way to get
there.
● Goals will increase your effectiveness; objectives back your goals, and cause you to be
more economical.
● Goals are usually represented in words; objectives usually go together with numbers
and specific dates.

Tip
Always think of a goal that is measurable. By establishing
measurable goals, you'll be able to track your progress and
acknowledge right away once your efforts are going off target.

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Unit 2.2: The Business Plan Contents (I): Introduction, Executive Summary, and
Proponents

Example
Writing Goals and Objectives

Situationer:
You want to establish a web-conferencing service for educational purposes. You can have
the following goals and objectives (in terms of launching the service):

● Placing print and airing radio ads to gain awareness.

● Attract first-time customers by offering a discount on their first visit.
● Cultivate prospects by implementing a permission-based weekly email to 2,500
targeted contacts.
● Convert 10 percent of prospects to clients, using email reminders.

Why is it important that your executive summary

is written perfectly?

The Executive Summary

The executive summary summarizes the necessary details of the business plan for its
readers. It is timesaving for readers, for they are able to get the gist of the business plan.
The content of the executive summary should be clear and brief but also stimulates the
reader to read the rest of the business plan.

The Contents of the Executive Summary

For a startup business, generally, one of the main goals of the business plan is to persuade
banks, investors, or venture capitalists to take a position in your business by providing
startup capital in the type of debt or equity funding. To try to do so, you may offer a solid
case for your business plan that makes your executive summary provide all the additional
important details. A typical executive summary for a startup business includes the
subsequent sections:

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Unit 2.2: The Business Plan Contents (I): Introduction, Executive Summary, and
Proponents

● The business opportunity - It describes the needs of the target market.

● Taking advantage of the opportunity - You need to explain how your business will
serve the market.
● The target market - You need to describe your market based on the analysis that
you will conduct.
● Business model - You need to describe and think of products or services and justify
in what way it will make it appealing to your target market.
● Marketing and sales strategy - You need to have a brief outline of your marketing
strategy for your products or services that you will offer.
● The competition - Describe your competition and your strategy for getting market
share. You will also identify your competitive advantage.
● Financial analysis - Summarize the financial statement together with projections for
a minimum of three years.
● Owners/Staff - You need to describe the owners and also the key employees and
the experience they convey to the venture.
● Implementation plan - As an entrepreneur, you need to define the schedule for
taking your business from the planning stage to its formal opening.

Remember
In writing your executive summary, you already need to capture the
audience's attention immediately so that they are motivated to read
the remainder of the document.

For established businesses, the executive summary usually includes data regarding
achievements, growth plans, etc. A typical executive summary outline for an established
business includes:

● Mission Statement – It describes what your company does and indicates the
company’s core values and business philosophy.
● Company Information – It contains a brief history of the company. It describes and
introduces the products and/or services, the place and the year it was formed, the

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Unit 2.2: The Business Plan Contents (I): Introduction, Executive Summary, and
Proponents

owner/s and its key employees, substantial data such as the number of employees,
and business locations.
● Business Highlights – It presents a quick glance of the evolution of the business -
how it has grown, including profitability, increases in market share, and the number
of customers served.
● Financial Summary – It contains a brief financial summary if the purpose of the
business plan is for expansion and network growth.
● Future goals – It describes the goals and future plans for the business. If the
intention of the business plan is to seek financing, it explains how these additional
funds will be used to expand the business and/ or increase profits.

Tip
You need to end your business plan’s executive summary with a
strong and clinching closing sentence that will justify why your
proposed business is a winning one.

Example
Executive Summary of an Anime Store

Johanne’s Bakery (JB) is a starting coffee and cake shop located in San Pedro City, Laguna. JB
is expected to catch the interest of its loyal and regular customers with a variety of coffee,
pastry, and cake products. The company plans to have a strong market established in the
town because of its mild competitive climate and our partner’s experience in the area.

JB aims to offer its bread and pastry products at a competitive price to meet the needs and
demands of the lower-to-middle income local market area residents and tourists.

Because of its variety of product offerings, Johanne’s Bakery will be the No. 1 coffee and
bakeshop in the city.

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Unit 2.2: The Business Plan Contents (I): Introduction, Executive Summary, and
Proponents

Why should you aim to write an excellent

executive summary?

On Writing an Executive Summary

There are five major tips on writing an effective executive summary:

1. Focus on providing a summary. The business plan itself can offer the details of the
business, and the readers of your plan don’t wish to have their time wasted. So just
input the important details in the executive summary.
2. Keep your language sturdy and positive. Don’t weaken your executive summary
with non-sturdy language. Rather than writing, “The Anime Store could be the best
anime store in the country,” write “The Anime Store is the best anime store in the
country.”
3. Keep it short - no over two pages long. Resist the temptation to pad your business
plan’s executive summary with details (or pleas). The duty of the executive summary
is to present the facts and stimulate your reader to read the remainder of the
business plan, not to tell everything.
4. Polish your executive summary. Read it aloud. Does it flow smoothly, or it sounds
choppy? Check for clarity. Once it sounds smart to you, have another person who is
not aware yet of your business scan it, and create suggestions for improvement.
5. Put yourself in your readers’ place. Browse your executive summary once more.
Does it generate interest or excitement for you as a reader? If not, why?

Who are considered to be the business

proponents in a certain business?

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Unit 2.2: The Business Plan Contents (I): Introduction, Executive Summary, and
Proponents

The Business Proponents

This section of your business plan contains information about the business proponents or
the stakeholders of your business. There are four (4) types of stakeholders:

Table 1. Types of stakeholders

Types of Stakeholder Description

Resource Mobilizers They are the investors who are willing to take a position
within the business. They are the ones who will share in
the capital of the business.

Technology Providers and They are the ones who can think about the technologies
Applicator that the business needs. They are also the ones who can
analyze if the budget is enough to make use of
technologies and if there's enough funds that they can use
to acquire it.

Government and Top These leaders will lead their members. However, having
Management leaders doesn’t mean that other members can’t
participate. Because as a team within the business, the
suggestions and approval of every individual are extremely
necessary. In this part, they will be able to formulate
different ideas and thoughts which will improve the
business.

Operations and Support These are members that will create the main product.
Team Others will work for the implementation of the business
and might operate the institution. There are also members
who can work as the advertisers of the business. Others
can be the ones who will become sellers, cashiers, and
other support staff of the business.

Remember
Each of the proponents has something to contribute, and they can be
divided based on their capabilities, skills, and interests.

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Unit 2.2: The Business Plan Contents (I): Introduction, Executive Summary, and
Proponents

Extend

Activity
If you are going to have a business, what would it be? Make an organizational chart
illustrating the key stakeholders of your business.

Guide
● In answering the organizational chart, you may refer to the type of stakeholders in
the Business Proponents part.
● Avoid broad/ generalized terms so as not to create confusion and vagueness.
● Focus on answering what is just being asked in the activity.

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Unit 2.2: The Business Plan Contents (I): Introduction, Executive Summary, and
Proponents

Evaluate

A. You will do this activity with your group mates. Each

group will discuss the answer to the following questions.
One group member will be selected to share your
answer in front of the class.

1. Why is it essential to make the business goals measurable and attainable?

2. What will happen if the executive summary is vague or has incomplete details?

3. Why should business partners be well-meaning and like-minded?

4. Why should executive summary be written with positive and sturdy language?

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Unit 2.2: The Business Plan Contents (I): Introduction, Executive Summary, and
Proponents

5. Why should you put yourself in the place of the reader of your executive summary?

B. If your group will establish a business whose mission and

vision statements are given below, what will be your goals in
the future to make your business succeed? Write five goals
or objectives that a business should attain.

Name of Business: Double Happiness

Vision Statement To establish a commanding presence and market

leadership as a food chain servicing major bus terminals in
Metro Manila within the next five years.

Mission Statement To provide quality food and passenger convenience

services that would help improve the growth of the
company and the lives of its employees.

Goals and Objectives 1.

2.

3.

4.

5.

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Unit 2.2: The Business Plan Contents (I): Introduction, Executive Summary, and
Proponents

Wrap Up
___________________________________________________________________________________________

● A business plan introduction serves as the “bird’s-eye view” of your plan.

● A business concept emphasizes the value of the product to be offered to the
target customers who would most likely buy it.
● A business model is a formula on how the business plans to make money out of
business.
● The business goals show the long-term and prospects of the enterprise.
● The executive summary provides the key points of a document for its readers,
saving them time and getting them ready for the entire content.
● The business proponents contain information about the stakeholders of your
business.

___________________________________________________________________________________________

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Unit 2.2: The Business Plan Contents (I): Introduction, Executive Summary, and
Proponents

Bibliography
“An Introduction to Business Plans.” Entrepreneur. Accessed March 20, 2010.
https://www.entrepreneur.com/article/38290.

Berry, Tim, and Noah Parsons. “Palo Alto Software.” Bplans. Accessed March 3, 2020.
https://articles.bplans.com/writing-an-executive-summary/.

Dollingner, Marc. Entrepreneurship: Strategies and Resources 3rd Edition. New Jersey: Prentice
Hall, 2003.

Peterson, Steven D. “Set Goals and Objectives in Your Business Plan.” Dummies. Accessed
March 20, 2020.
https://www.dummies.com/business/start-a-business/business-plans/set-goals-and-o
bjectives-in-your-business-plan/.

Ward, Susan. “Business Plan Tips: How to Write a Winning Executive Summary.” The Balance
Small Business. Accessed March 20, 2020.
https://www.thebalancesmb.com/executive-summary-of-the-business-plan-2948012.

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