UNIT 1-Lesson 3-Developing Business Plan

ENTREPRENEURSHIP
Lesson 3: Developing Business Plan

ACTIVITY:
Answer the Following question based on your own opinion,
1. How do you define the word “Planning”?
2. What is Business?
2
What Is a Business Plan?
3
Business Plan
× A business plan is a written document that

describes in detail how a business—usually a
startup defines its objectives and how it is to go
about achieving its goals. A business plan lays out
a written roadmap for the firm from marketing,
financial, and operational standpoints.
4
KEY TAKEAWAYS
•A business plan is a written document describing a

company's core business activities, objectives, and how
it plans to achieve its goals.
•Businesses may come up with a lengthier traditional
business plan or a shorter lean startup business plan.
•Good business plans should include an executive

summary, products and services, marketing strategy and
analysis, financial planning, and a budget.
5
The Business Plan Looks Forward in Time
× Business plans usually look forward in time for a period of one to three
years to a "planning horizon," which moves forward periodically with
reviews and updates. Business plans for different organizations will
differ somewhat in content and structure, but most are designed to
address two fundamental kinds of questions:
- What will the business look like in one year? Two, or three
years? (I.e., what will business performance look like and what will the
financial position look like then?)
- How does the organization bring about the desired performance and
build a stable financial situation?
6
The Business Plan Looks Forward in Time
× Founders and owners typically develop an initial business plan

before startup. They build the plan anticipating using it as a
tool for supporting their requests for investment capital or
loans to start the business. And, once the company is
operating, the business plan becomes a living document,
which management reviews and revises at least quarterly.
7
In creating or searching to business opportunities, one must
consider the following factors:
1. The needs of the society
2. Availability of capital resources
3. Business inclination
4. Clientele
5. Availability of raw materials
6. Human Resources
7. Nature of product or service
8
BASIC PHASES OF BUSINESS PLAN
1.Marketing and Distribution Study

× shall deal with product demand analysis. It should
show the competitive product advantage over
existing product or service and designing the
marketing program of the enterprise.
9
2. Production and Technology Study

× refer to the need in making the product or service.
This refers to the machineries, plant location, and
other technical aspect in the making of the product.
10
3. Financial Management
× refers to the capital investment and sources of
funding the operation of the business.
11
CONTENT OF BUSINESS PLAN
× A business plan should be

structured in a way that it
contains all the important
information that investors are
looking for.
Here are the main sections of a
business plan:
12
BUSINESS PLAN TEMPLATE
13
× Each part of the business plan outline below

offers a brief overview of what the section
covers.
14
1. The Executive Summary

× While appearing first in the business plan, the executive summary
is a section that is usually written last as it is a summary of the
entire business plan. It provides an overview of your business
including your mission statement and details about what you
offer. It's critical that your executive summary is outstanding,
especially if you're seeking funding.
15
2. The Business Description

× Provide information about the business you're starting, including
what sort of problem your product or services solve, and who the
most likely buyer is. Provide an overview of the industry that your
business will be a part of, including trends, major players in the
industry, and estimated industry sales. This business overview section
should also provide a summary of your business's place within the
industry, along with your or your team's expertise as well as your
competitive advantage.
16
3. Market Analysis
× The market analysis is a crucial section of the business plan, as it
helps you identify your best customers or clients. In the market
analysis, research the primary target market for your product or
service, including geographic location, demographics, your target
market's needs and how these needs are currently being met. Your
purpose here is to have a thorough knowledge of the people you are
planning to sell your goods and/or services to so that you can make
informed predictions about how much they might buy.
17
4. Competitive Analysis
× In the competitive analysis section, you'll learn how successful your
direct and indirect competitors are in the marketplace, with an
assessment of their competitive advantage and how you'll set yourself
apart from them. It also includes an analysis of how you will
overcome any entry barriers to your chosen market. You also need to
distinguish your business from the competition, which is especially
important in persuading potential funding sources that you'll be able
to compete in the marketplace.
18
5. Sales and Marketing Plan

× The sales and marketing section offers a detailed explanation of your
sales strategy, pricing plan, proposed advertising and promotion activities,
and product or service's benefits. This is where outline your business's
unique selling proposition, describe how you're going to get your goods
and/or services to market, and how you're going to persuade people to
buy them.
× TIP: When developing your unique selling proposition, your goal is to
answer the question: Why should people buy from me over my
competition?
19
6. Ownership and Management Plan

× This section gives an outline of your
business's legal structure and management resources, including your
internal management team, external management resources, and
human resources needs. Include experience or special skills each
person in your management team brings to the business. If the goal of
your business plan is to get funding, it's wise to make sure that your
management plan includes an advisory board as a management
resource.
20
7. Operating Plan
× The operating plan gives information on how your business will be
run. It provides a description of your business's physical location,
facilities and equipment, kinds of employees needed, inventory
requirements, suppliers, and any other applicable operating details,
such as a description of the manufacturing process.
21
8. Financial Plan
× Starting a business is generally about making a profit, and so having
a solid sense of your current finances, funding needs, as well as
projected income is important. In the financial section, provide a
description of your funding requirements, your detailed financial
statements, and a financial statement analysis. This part of the
business plan is where you present the three main financial
documents of any business; the balance sheet, the income statement,
and the cash flow statement, or in the case of a new business, a cash
flow projection.
22
9. Appendices and Exhibits

× In addition to the sections outlined above, at the end of your business
plan, include any additional information that will help establish the
credibility of your business idea, such as marketing studies,
photographs of your product, permits, intellectual property rights
such as a patent, credit histories, resumes, marketing materials,
and/or contracts or other legal agreements pertinent to your business.
23
 After completing all the sections, don't forget to insert a title page at the beginning of the plan followed by a table of contents listing
each section with page numbers.
Table of Contents
1. Executive Summary................................ Page #
2. Business/Industry Overview................. Page #
3. Market Analysis........................................ Page #
4. The Competition...................................... Page #
5. Sales & Marketing Plan........................... Page #
6. Ownership and Management Plan....... Page #
7. Operating Plan.......................................... Page #
8. Financial Plan............................................ Page #
9. Appendices and Exhibits........................ Page #
24
STRENGTH, WEAKNESSES, OPPORTUNITIES AND
THREATS (SWOT)
× SWOT ANALYSIS – is an entrepreneurial tool in

determining the profitability of the business operation.
Opportunities carriers with it some risk involved and this
should be look into carefully. The strengths and
weaknesses are internal factors to the entrepreneur while
the opportunities and threats are external factors.
25
THANK YOU!
26

UNIT 1-Lesson 3-Developing Business Plan

Uploaded by

Copyright:

Available Formats

UNIT 1-Lesson 3-Developing Business Plan

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

UNIT 1-Lesson 3-Developing Business Plan

Uploaded by

Copyright:

Available Formats

ENTREPRENEURSHIP

Lesson 3: Developing Business Plan

Answer the Following question based on your own opinion,

1. How do you define the word “Planning”?

× A business plan is a written document that

•A business plan is a written document describing a

•Good business plans should include an executive

× Founders and owners typically develop an initial business plan

1.Marketing and Distribution Study

2. Production and Technology Study

× A business plan should be

× Each part of the business plan outline below

1. The Executive Summary

2. The Business Description

5. Sales and Marketing Plan

6. Ownership and Management Plan

9. Appendices and Exhibits

× SWOT ANALYSIS – is an entrepreneurial tool in

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.