BEST KIDS (Building Entrepreneurial Skills and Talents of KIDS PLUS)

SEASON 5: New Normal Edition

ANNEX C: SIMPLE BUSINESS PLAN

Below is our recommended business plan outline. Every business is different and the business
plan needs to be tailored to reflect that, therefore this is more a guideline than a strict template.

Our business plan outline is structured so that each section answers a specific set of investor
questions about your business. It also offers a natural progression making it suitable for both the
investor who wants to read the plan cover to cover and the one who wants to simply jump into
specific parts to clarify particular points.

I. BUSINESS OVERVIEW

Name of Business
Location
Date Started
Owner of Business
Relationship of Owner to
Participant
Products/Services being Offered

II. ORGANIZATIONAL MANAGEMENT

1. Legal Environment

Registered:  Yes (if Yes, write government agency/ies) _______________________

 No

Capitalization:  Sole Proprietorship  Partnership  Corporation

2. Number, Qualifications and Salary of Personnel Requirements

Job Title No. Tasks Qualification Salary

1.

2.

3.

4.

5.

3. Narrative Contributions/Responsibilities of Participant in Operating the Business

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4. Organizational Chart. (Draw the Organization Chart showing also the position of participant
in the Business)

III. PRODUCTION MANAGEMENT

1. Operational Plan. Explain the daily operation of the business, its location, equipment, people,
processes, and surrounding environment.
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2. Production. Explain how and where your products or services are being produced. Explain
your business methods in terms of the following.

2.1 Production/Service Process and Costs. List and describe the process steps of production or
service delivery.

Production Activity Raw Unit Price Quantity Total Cost

Materials

2.2. Quality Control. Describe how you define quality for your business and how can you
ensure meeting quality standards.
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2.3. Customer Service. Explain how you handle customers complaints and how will you
provide customer service innovatively.
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2.4. Inventory control. Describe the kind of inventory that the business implements. i.e.,
average value in stock of raw materials, supplies, finished goods, etc.
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2.5. Contingencies. Describe how you deal with more than one supplier for critical production
items as a backup to address shortages or short‐term delivery problems.
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2.6. Power, Water and Other Utilities. Describe your estimated monthly expenses for power
and other utilities relative to business operation.

Usage Monthly Consumption

Utility (i.e., KwH/month,
Cubic meters/month,
Mpbs/month)
Power
Water
Internet

IV. MARKETING MANAGEMENT

1. Customer Description. Describe the target customers of the business.

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2. Trends. Define what the current market conditions are, such as economic indicators, life-cycle
stage, areas of profitability, and technological changes that are being address by the business.
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3. Competitive Advantages. Describe the advantages or uniqueness about the business that its
competitors could not easily replicate. It is normal that new businesses do not have a competitive
advantage yet. State a planned competitive advantage that you want to build for the business.
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4. Marketing Mix. Describe the methods you will employ to grow awareness, drive sales, and
motivate customer loyalty.
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5. Product/Service. Describe the products/services that you are selling to address the demand
/needs of target customers. Focus on a few products that will generate the most income.
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6. Place. Describe the channels and methods to deliver the products/services to your customer.
This may be through direct-selling, partners or distributors, marketplaces and others.
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7. Price. Describe the pricing methods being used to deliver the products/services to your
customer. Include the specific prices for your products/services.
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8. Promotions. Describe the methods being used to make the products/services known to your
target customers.
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V. FINANCIAL PLAN

1. Different Types/Sources of Financing the Business (check all applicable)

Internal Source  personal savings  other assets, personal properties

External Sources:  from relatives/friends  loans

2. Project Costing. Show the sales forecast indicating the quality of products that you will sell
and its selling price for the next three (3) months.

Month Units to be sold Price per Unit Total

November, 2021
December, 2021
January, 2022

3. Production Cost. Show the monthly cost of production needed in the business.

Activities Quantity Unit Cost Total

Direct Materials
Direct Labor
Overhead

4. Management and Organization. Show the monthly personnel expenses that are not included
in production cost.

Personnel No. Monthly Other Total

salary benefits

5. Prepare Income Statement (Monthly)

Name of Business: _____________________________________

Sales Phpxxxx
Less: Cost of Good Sold/Cost of Sales Xxxx
Gross Profit Xxxx
Less: Operating Expenses Xxxx
Selling and Marketing Expenses Xxxx
General and Administrative Expenses Xxxx
Total Operating Expenses Xxxx
Net Income or Net Profit Xxxx
6. Prepare Balance Sheet.

ASSETS
Bank Account PHP XXXX
Accounts Receivable PHP XXXX
Equipment PHP XXXX
TOTAL ASSETS PHP XXXX

LIABILITIES
Accounts Payable PHP XXXX
Loans Payable PHP XXXX
Utilities Payable PHP XXXX
Salaries Payable PHP XXXX
TOTAL LIABILITIES PHP XXXX

OWNER’S EQUITY PHP XXXX

TOTAL LIABILITIES and OWNERS’ EQUITY PHP XXXX

Note: Total Assets should equal Total Liabilities plus Owner’s Equity

7. Prepare Cash Budget

For the period ending (month)

Beginning Cash Balance, (date) XXX

Cash Collections
From Current Sales XXX
From Accounts Receivable XXX

Cash Payments
Materials XXX
Payroll XXX
Rent XXX
Utilities XXX

Cash In/Out from Financing Activities

Interests Received XXX
Loan Repayments XXX

Ending Cash Balance, (date) XXX