21ST ADD
21ST ADD
Environmental Analysis
It is a strategic tool that helps determine the external and internal
factors affecting the performance of the business.
Business Description market that exists. The marketing plan details how the proposed business will sell
It presents the nature and form of the business to be undertaken, its product to the target consumers. It may consist of some or all of the following
and may cover two to three pages. important sections.
Organizational Plan
It provides a detailed description of the business in terms of the form
of the business organization, liability of the owner/s, organizational structure, roles
and responsibilities and salary requirements.
Business Plan
It is the road map of the new business and of the entrepreneur. It is a
detailed and integrated written document that describes the various activities
involved in opening and operating the business.
Sanitary Permit. The official document issued by the Department of Public Health Entrepreneur – refers to a person who strongly advocates and correctly practices
and Social Services authorizing the establishment to operate its business. the concepts and principles of entrepreneurship in operating and managing the
self-owned entrepreneurial venture.
Organization Plan. The organization plan provides a detailed description of the
business in terms of the following: Entrepreneurship – is the art of observing correct practices in managing and
1. Form of the business organization operating a self-owned, wealth-creating business enterprise by providing goods
2. Liability of the owner or owners and services that are valuable to the customers.
3. Organizational structure
4. Roles and responsibilities Feasibility – the possibility that can be made, done, or achieved, or is reasonable.
5. Salary requirements
Corporation - is a legal entity created by individuals, stockholders, or
Organizational Structure. The organization section sets up the hierarchy of the shareholders, with the purpose of operating for profit.
people involved in your business. It's often set up in a chart form.
Board of Directors. This section provides much of the same information as in the 10 Reasons Why You Need to Prepare a Business Plan for Small Business
ownership and management team sub-section. Name, Expertise, Position (if there 1. To help you with critical decisions
are positions) and Involvement with the company. 2. To iron out the kinks
Support Professionals. This is the place to list any freelancers or contractors 3. To avoid the big mistakes
you're using. 4. To prove the viability of the business
Financial Plan. The fifth major section of dehydrated business plan is the financial 5. To set better objectives and benchmarks
plan. It accumulates and describes all the data expressed in monetary units from 6. To communicate objectives and benchmarks
the other sections of the business plan. A financial plan is simply an overview of 7. To provide a guide for service providers
your current business financials and projections for growth. 8. To secure financing
9. To better understand the broader landscape produce or provide. It may include brief information about the ultimate mission,
10.To reduce risk vision, and objectives of the business.
Two Major Tests to be Conducted every time a New Business Idea is Created Location of the Business. The basic entrepreneurial consideration is to place the
1. Test of Possibility 2. Test of Feasibility proposed business in a strategic location that will assure competitive advantage.
The following factors should be considered when deciding on the location of the
The test of possibility for the new business should have a positive result, so that proposed business:
the test of feasibility or viability will be conducted. 1. Proximity to the target customers
2. Distance from the sources of raw materials, labor, and utilities
The primary objective of the feasibility study is to determine whether the 3. Availability and cost of transportation
proposed business is feasible or not in all areas. If the outcome of the feasibility 4. Peace and order situation
study is positive, then the entrepreneur prepares the business plan. 5. Presence of direct competitors
6. The geographic and climatic conditions
MAJOR PARTS OF THE BUSINESS PLAN
There is no universally accepted standard format or structure of the business plan.
1. Introduction
2. Executive Summary
3. Environmental Analysis
4. Business Description
5. Organizational Plan
6. Production Plan
7. Operation Plan
8. Marketing Plan
9. Financial Plan
10.Appendix
Name of the Owner. The name of the owner must be properly stated. In a sole
proprietorship, there is only one owner. In case the venture is a partnership, the
names of the partners, including the extent of their liabilities, must be indicated.