Key people who will handle the business operations identifies key personnel who will handle your

business Since you are still starting your business, you may be the one involved in all of its operations

The financial requirement portion should indicate the total amount of the proposed business concept

C Product or service description

This segment tackles the characteristics and the details of the proposed idea. The name of the product
or service should be described first. A complete picture of the product or service being proposed must
be fully described. A clear understanding of the product must be settled first before other details are to
be identified. Details of the product such as properties, features, characteristics, possible sources of raw
materials or ingredients, potential market or customers and other details should be included

D. Industry analysis

An industry is a group of firms producing similar products or offering similar services This part of the
business plan shows a situational presentation, at least three to five years of current data trends and
latest updates of the industry where the proposed business idea belongs. This will include the group of
businesses in the same orientation, target market, understanding the gap or the need of the industry,
the size, growth, structure, and other factors that may contribute to the success of the industry

E Market analysis

A market analysis involves the search for, and analysis of, data that can be used to identify, isolate,
describe, and quantify a given market or group of customers. The size, characteristics, and direction of
market movement are the basic areas of interest

Steps of the market analysis

1. Define the objectives of the study. To justify the conduct of a market analysis. it is imperative that an
objective should be set in a detailed manner. What makes the market attractive is the primary concern
of the analysis. To meet this objective, answering the following questions will be very useful:

Who is your target market?

What is the size of the market and your production capacity?

What will be the nature of the operation and industry orientation of the business being planned?

How much sales is being projected? What is the price of the product or service being offered? How will
the product reach the customers in the most efficient manner?

2. Conduct a situational analysis of the market. This step seeks the background information on the
relationship between the product (or service) and the market it wishes to serve An interview with key
people is necessary to generate as many information to make the result of the analysis more reliable. 3.
Collect secondary data, if necessary. Secondary data are published materials that also rely on primary
data such as surveys, indices, rates and other data for authority Examples of secondary data sources are:
  Internal company records
 Government publications
 Registration data
 Trade and professional associations
 Private business research firms
 Private directories
 University research organizations Foundations and institutes
 Investment and brokerage firms

F. Marketing plan

It is a comprehensive document or blueprint that outlines a business' advertising and marketing efforts
for the coming year. For your project, you are to describe how you will advertise your product. Will you
use flyers? Will it be a house-to- house information dissemination? Will you let your relatives help you?
A marketing plan describes the business activities involved in accomplishing specific marketing
objectives within a set time frame. For a business to grow, you need to consider a thorough study of the
market.

Amarketing plan identifies almost all you need to know about your target customers, how your product
will reach them and how you will maintain their loyalty so you can expect a repeat purchase. If properly
designed, your marketing plan can be your guide to attract more customers, which will lead to your
business' eventual success. A marketing plan is guided by the so-called P's of marketing or the marketing
mix: Product. Place, Price, Promotion, People, Packaging and Positioning. There is however another "P"
that must be added in service marketing and that is Productivity (and Quality). This will be discussed
thoroughly in the next lesson and will be the basis for developing your overall marketing strategy.

G. Production or operational plan

The production or operational plan lays down the specifics of operating or running the business, and if
the marketing plan has the P's that make up the marketing mix. the production or operational plan has
the four M's that comprise the production or operation of a business: Materials, Machines, Men (and
Women), and Money

H. Organizational plan

This details the human resource complement of the business. It also describes the legal form that the
business will take: sole proprietorship, partnership or corporation

I. Financial plan

Lastly, the financial plan shows the financial or funding requirement of the business Will the business be
financed 100% by the owner? Will some of the funds come from the bank or an investor?
The financial plan also shows the financial projections of the business from its startup stage up to the
time it registers positive income. Therefore, some projected financial statements that follow the
Generally Accepted Accounting Principles will be part of the financial plan.

J. Appendices

This portion is intended for miscellaneous items which may not be put in the main part of the business
plan such as photos, contracts, forms, certificates, permits and other papers related to the business.
Serves as guide in the implementation of the plan for business including the marketing, production,
organizational and financial aspects of the enterprise. You will need to identify key people involved in
your business. A blueprint of the all aforementioned aspects have to be clearly defined.

• Serves as selling tool for encouraging investment and financing. You are making a business plan to
make your business a success, Planning is the first step to make it successful as you will know the steps
to take.

Essential questions that have to be answered when making a business plan.

•What problem does the product or service solve? What need does it fill?

•What niche will it address?

• Who are the customers of the enterprise? How will the enterprise sell its product or service to them?

•What is the size of the market to be served?

• How will the business make money (Revenue - Cost Profit)? • What other products pose competition
to the business and how will the enterprise maintain its competitive advantage?

•How will the enterprise adjust its systems of management as the business grows?

•Who will run the company and what are their capabilities to manage the business

• What are the risks and threats confronting the business and what are the resources

•What will be the future financial requirement of your business? needed?

Parts of a business plan

A business plan does not need to be lengthy It contains the following parts:

A. Executive summary

This contains a brief description of each part of the business plan. Despite being short, the whole picture
of the proposed business must be clear enough to catch the interest of a potential venture capitalist or
any interested individual who will finance the business.

All the parts of the business plan which should be presented in the summary in at least one or two
paragraphs each are: Introduction, Product, Service or Company Description, Industry Analysis, Market
Analysis, Marketing Plan, Organizational Structure, Operations, and the Financial Aspect (where funding
will come from).

How to write an executive summary

The executive summary is the doorway to your business plan-this is the part where you should grab your
reader's attention and let him know what it is you that you intend to do and why your reader should
read the rest of your business plan or proposal. It should be written last but must be placed at the
beginning of the business plan.