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ENTREP

The document outlines the key components of a business plan and provides details on each section. It discusses that a business plan should: 1) Describe the business concept, goals, target customers, products/services, and strategy for gaining customers and keeping them. 2) Include an executive summary that introduces the business, team, offerings, strategy, and financial forecasts in 2-3 pages. 3) Provide details on the business founders, partners, suppliers, and management team to showcase their qualifications and contributions. 4) Analyze the market size and industry factors, and justify how the business will succeed in that environment. 5) Present financial projections like sales, expenses, profits, and return

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Mike
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© Public Domain
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Download as PDF, TXT or read online on Scribd
69 views

ENTREP

The document outlines the key components of a business plan and provides details on each section. It discusses that a business plan should: 1) Describe the business concept, goals, target customers, products/services, and strategy for gaining customers and keeping them. 2) Include an executive summary that introduces the business, team, offerings, strategy, and financial forecasts in 2-3 pages. 3) Provide details on the business founders, partners, suppliers, and management team to showcase their qualifications and contributions. 4) Analyze the market size and industry factors, and justify how the business will succeed in that environment. 5) Present financial projections like sales, expenses, profits, and return

Uploaded by

Mike
Copyright
© Public Domain
Available Formats
Download as PDF, TXT or read online on Scribd
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Business Plan and its Parts

r A business plan is a written document that describes all the steps necessary for opening and
operating a successful business.

r Descrihes what your business will produce, how you will produce it and who will buy your
product or service

r Explains who will run your business and who will supply it with goods
r States how your business will win over customers from competitors and what your business will
do to keep customers
r Provides detailed financial information that shows how your business will succeed in earning a
profit.

L lntroduction
a- The Business Concept and Business Model
b. The Business Goals: Vision, Mission, Objectives and Performance Targets
c. The Business Offering and Justification
ll. Executive Summary
lll. The Business Proponents: Organizers with their Capabilities and Contributions
lV. The Target Customers and the Main Value Proposition to the Customer
V. The Market, Market Justrfication based on the Industry Dlnamics and the Macro
Environmental Factors Affecting the Opportunities and Threats in the Market the Size,
Potential and Realistic Share of the Market
Vl. The Product and Serv'ice Offerrngs
Vll. The Enterprise Strategy and Enterprise Delivery Systems: Business Competitiveness
Vlll. The Financial Forecasts and Expected Retums,Rrsk and Contingencies
lX. Environmental and Regulatory Compliance
X. The Capital Structure and Financial Offenng: Returns ard Benefits to Lrvestors, Frnanciers
and Business Parhrers

I.The Business Concept


- Contains the essence of the enterprise rr a concise but powerfi* manner
- It stresses the value ofthe product berrg offered.
The Business Model
r A formula on how the enterprise exactly plans to make money out of the business

The Business Goals: Vision,Mission,Objectives and Performance Targets

'. lt shows the future and long-term prospects of the enterprise.


r It also includes the key result areas and the performance indicators

II. Executiye Summary


r It's a synthesis of the entre plan
r Contains the rnajor argumentations of the business proponent on why the business will work
arid succeed
r Should rn oduce and highlight the good qualities of:
*...
E-

1. Business proponents and their partners


2. The enterprise orgarizationand its capabilities
3. The technology providers and their expertise and experience
4. The suppliers and all the major service providers
r Describe the products/services its features and attributes
r Justify the Enterprise Strategy (builds arrd develops the game plan for attaining
competitiveness) md
r Enterprise Delivery System (the entire process of convertrng resources into output into
outcomes.
r Should render all the operations,market, and organizational strategies previously cited into
financial strategies and forecasts
r Lrvestment requirements should be presented
r Should contain a section on the environmental and regulatory compliance of the proposed
business
o Capital struchre
III. The Bnsiness Proponents
- Contains information about the business proponents or stakeholders.
Tlpes of stakeholders:
1. Resource mobilizers and financial backers ( to share the burden of raising money)
2. Technology providers and apptcators ( sufficient firnds to pay for the teachnology)
3. Governance and top management (what sfategies and performance indicators are berng
proposed)
4. Operating and support team (what programs,activities tasks and resources would be in place)

ry. The Target Customers and the Main Yalue Proposition

o Target Customers must be of sufficient size,paying capacity and interest to purchase the
products
r The Main Value Proposition - the unique selling proposition
V. Market Demand and Supply, lndustry Dynamics, and Maero Environmental Factors
r The business plan should estimate the total market supply and demand for the
product offerings and determine the majcr critical factors that influence it. Once
these factors or variables are determined,the business pian should then forecast
the future demand and supply
Industry Dynamics
r It is &e study of the means and processes through which industries change over time through
their own processes of evolution.
Macro Enyironmental Factors
r Sociai Environment
o Demographic and euitural dimensions
o PoliticalEnvironment
Includes the laws, rules, and regulations on allowable and disallowable business practices
r Economic Environment
- Driven by supply and demand forces
- EcologicalEnvironment
- Includes all naturalresources afldthe ecosystem
III. Product and Seryice Offering
- It is described by hrghlightlng the features and attributes of the producVservice.
YIL EnterpriseStrategy
- Mapprng of the competitive landscape
- Situating the enterprise and its competitors as to their stategies and chosen positiomng
- List down all yow direct and indirect competitors ( in a table form that has products or
services that directly competing with your produc! include the price of their product and
proximrty distance oftheir business to your location.
- Identify your core competency ( best features ofyour product or services)
- Identifu your competitive advantages ( unique characteristics of your business that your
competitors don't have)

VIII. Finaneial Forecasts: Expected Returns, Risks and Contingeneies


hnportant Retum Calculations :
l. Expected return on sales
2. Expected return on assets or investrnents
3. Expectedretum on stockholders' equity

Return on Sales
ROS : Net Income
Sales
ROS: Php 750
Php 1500
:0.5 x 100: 50%

Return on Assets or Investrnents


ROI: Investnent x Rate of ROI
: Php 2,000 x50o/o
ROI: Php 1,000

Retum on Equity
ROE: Net Income
Owner's Equity
: Php 750
Php 2,000
:a375:37.5A%

I)L Environmental and Regulatory Compliance

The business plan must articulate the ff:


- Laws
- Rules and regulations goveming the business and the indusfy that the enterprise is in.

)L Capital Structure and Financial Offering: Returrs and Benefits to Investors, Financiers
and Partners
Advice for Writing a Business Plan

1. Analyze the Market Thoroughly


ln analyzing the market for your product or service, you must answer the ff:questions:
a. What is your target market?
b. How large is the target market?
c. Who will buy your product or service?
2. Provide Solid Evidence for Any Claims
- Factualsupport must be supplied for any claims or assurances made. ln short, the
plan must be believable.
3. Think like an lnvestor
: Brinl to the andlysis both the energy of the entrepreneur and the discipline of an
investor.
- Many small firms do not seek outside capital, except in the form of small loans. But
whether or not you are preparing a business plan, in order to seek outside financing,
you would benefit from understanding the world as an investor sees it.
4. Don't Hide Weakness - ldentifu potential Fatal Flaws
- The best way to properly handle weaknesses, or flaws is to consider thoroughly all
potential issues, to be open and straightforward about those issues and to have an
action plan that effectively addresses any problems.
5. MaintainConfidentiality
- When presenting your business plan to outsiders, prominentty indicate that all
information in the plan is proprietary and confidential.
- Number every copy of the plan and account for each outstanding copy by requiring
all the recipients of the plan to acknowledge receipt in writing.
6. Pay Attention to Details
- Use good grammar
- Limit the presentation to a reasonable length
- Go for an attractive, professional appearance
- Describe your product or service in lay terms

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