CHAPTER 8:
BUSINESS PLAN
LEARNING OUTCOMES
1. Explain the objective of preparing a business plan
2. Describe the reader of business plan
3. Identify the format of a business plan
INTRODUCTION
❑ An entrepreneur needs to plan for his business.
❑ The outlines and details of the proposed business in a
document known as a Business Plan.
❑ The Business Plan is essential when applying for
business financing and to guide the entrepreneur in
business planning and implementation process.
BUSINESS PLAN OBJECTIVES
• To evaluate the viability of the planned business
• To plan for business resources effectively
• To apply for business financing
• To use as a guideline for the planned business
BUSINESS PLAN READERS
1. Entrepreneur
2. Investors
3. Financial Institutions
4. Government Agencies
5. Other Relevant Parties
BUSINESS PLAN OUTLINE
COVER PAGE
▪ Include the details of the
project (name, contact no,
address, etc).
TABLE OF CONTENTS
▪ Include a list of the
sections, sub-sections,
and any appendices.
▪ The page numbers MUST
be included for easy
reference.
EXECUTIVE SUMMARY
▪ Gives a brief overview that helps put all the information
into perspective which includes:
▪ Brief description of the business and product/
service
▪ The target market
▪ The competitive advantages
▪ The profitability
▪ One paragraph and only wordings here.
▪ It is generally written at the very last when all the
details of the blueprint are available.
MAIN BODY
▪ Introduction
▪ Administration Plan
▪ Marketing Plan
▪ Operation Plan
▪ Financial Plan
▪ Conclusion
INTRODUCTION
a. Business Background
❑ Details regarding the company legal structure
(registered name, form address and when registered),
main activity & date operations start.
b. Owner Background
❑ Details of each individual that is a registered owner of
the business
❑ State relevant qualifications, skills, experience, role in
business and stake or share in business
c. Factors selecting the business
• Why do you choose the business to venture
• State at least 3 reasons
d. Purpose of preparing business plan
• Why do you prepare your business plan
• State at least 3 reasons
ADMINSTRATIVE PLAN
1. VISION, MISSION & OBJECTIVES
2. BUSINESS LOGO
3. ORGANIZATIONAL CHART
4. PERSONNEL
5. ROLES & RESPONSIBILITIES
6. COMPENSATION & BENEFITS
7. OFFICE EQUIPMENT, FIXTURES & FITTINGS, OFFICE
SUPPLIES
8. ADMINISTRATION BUDGET
MARKETING PLAN
1. PRODUCT OR SERVICE DESCRIPTION
2. TARGET MARKET
3. MARKET SIZE
4. COMPETITOR ANALYSIS
5. MARKET SHARE
6. SALES FORECAST
7. MARKETING STRATEGY
8. MARKETING BUDGET
OPERATION PLAN
1. PROCESS PLANNING
2. OPERATION LAYOUT
3. BUSINESS & OPERATION HOURS
4. LICENSE, PERMIT & REGULATIONS
5. PRODUCTION PLANNING
6. MANPOWER PLANNING
7. MACHINE AND EQUIPMENT PLANNING
8. MATERIAL PLANNING
9. OPERATION BUDGET
FINANCIAL PLAN
1. OPERATIONAL BUDGET
2. PROJECT IMPLEMENTATION COST
3. SOURCE OF FINANCE
4. PROFORMA CASH FLOW STATEMENT
5. PROFORMA INCOME STATEMENT
6. PROFORMA BALANCE SHEET
CONCLUSION
❑ Convince relevant parties that the business is feasible
and viable.
❑ Based on cash flow and net profit.
APPENDICES
❑ Relevant supporting documents
SUMMARY
• It is important to prepare a business plan to estimate
whether a new business or project is worth implementing.
It allows the entrepreneur to make an intelligent, informed
decision.
• There are multiple formats for a Business Plan which
commonly is based on the functional areas of a business.
