Entrepreneurship

01 How to make a business plan

02 Misconceptions on Entrepreneurship

03 Importance of Entrepreneurship

04 Sources of Entrepreneurial Ideas

05 Character Traits Common to Succesful

Entrepreneurs

06 Skills and Core Competencies in Entrepreneurship

The Business Plan
Lesson 1
Major Parts 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
 The Business Plan
A. Title Page
B. Table of contents G. Executive Summary
C. List of tables 1. Vision, mission, goals, and objectives
D. List of Figures of the business
E. List of Appendices 2. Business model
F. Introduction 3. Business and product positions
1. Proposed name of the business 4. Wealth Improvements approaches
2. Address of the business 5. Parties supporting the business
3. Name of the Owner/s H. Environmental Analysis
4. Description of the business 1. Global Analysis
5. Location of the business 2. Social Analysis
6. Funding requirements and 3. Industry Analysis
sources
I. Business Description
The Business Plan
1. Nature of the organization
2. Product or service that it plans to K. Production Plan
produce or serve 1. Production schedule
3. Various plants and office 2. Production Process
equipment 3. Processing plant and equipment
4. Size of the proposed business 4. Sources of Materials
5. Future parties with whom 5. Production cost
contracts may be necessary L. Operation Plan
6. Personnel Requirements 1. Evaluation of suppliers
7. Administrative operation 2. Materials requisition and receiving
J. Organizational Plan procedures
1. Form of business organization 3. Storage and inventory control system
2. Liability of the owner/s 4. Shipment system and control
3. Organizational Structure 5. Functions of support services
4. Roles and Responsibilities
5. Salary Requirements
M. Marketing Plan
The Business Plan
1. Product
2. Place
3. Price
4. Promotion
5. People
6. Packaging
7. Positioning
N. Financial Plan
1. Major Assumptions
2. Projected statement of comprehensive income
3. Projected statement of cashflows
4. Projected statement of changes in equity
5.Projected statement of financial position
6. Financial statement analysis
O. Apendix
 01 The Business Plan
• Prepared using a
scientific approach
• Roadmap of a new
business
• Must be prepared
Feasibility
before opening a new
Study
business
 Feasibility Study
- To determine whether the
proposed business is feasible or
not
Test
of Business idea should have
Possibility positive results

Test
Also known as the Test of
of
Viability
Feasibility
 INTRODUCTION
- presents the general
perspective of the business
- may consist one to two pages
1. Proposed name of the business
2. Address of the business
3. Name of the owner or owners
4. Description of the business
5. Location of the business
6. Funding requirement and source
 Proposed name of the
I business
N
T must:
R 1. reflect the business identity
O and image
D 2. promote the philosophical
U values and culture that the
C business values most
T 3. Profess the brand identity of
I the product
O 4. attract or influence the target
N customers
 Proposed name of the
I business
N
T must:
R 1. reflect the business identity
O and image
D 2. promote the philosophical
U values and cuture that the
C Three suggested business values most
T trade names 3. Profess the brand identity of
I must be the product
O submitted to DTI
4. attract or influence the target
N customers
I Address of the Business
N
T - should be correctly written
R because all business
O correspondence are mailed to
D the business address
U - email address is also necessary
C
nowadays to facilitate
T
I electronic communication
O betweeen the business and
N the customers
I Name of the Owner
N
T
R - must be properly stated
O - for partnership, the names of the
D owners, including the extent of
U their liabilities, must be indicated
Incorporators - for business venture that will
C are persons
T who originally operate as a corporate entity, the
I formed the names, nationalities, and addresses
O corporation of the incorporators must be given
N
I Description of the Business
N
T - must include information about the
R type of product or service the
O business intends to provide
D - may include brief information
U about the ultimate mission, vision,
C and objectives of the business
T - you can also mention other
I products or services that the
O business plans to produce or
N provide
I Location of the Business
N
- Basic entrepreneurial consideration
T
is to place the proposed business in
R
a strategic location that will assure
O Address of the Business
competitive advantage.
D • Exact business
Location of the Business
U address
• Indicates the
C • No additional
reason/s for
description is
T the selection
provided to
I highlight the
of the location
O exact business
N address
I Location of the Business
N
T Factors to be considered:
R 1. Proximity of the target customers
O 2. Distance from the sources of raw
D materials, labor, and utilities
U 3. Availability and cost of
C transportation
T 4. Peace and order situation
I 5. Presence of direct competitors
O 6. The geographic and climatic
N conditions
 Funding Requirement and
I Source
N
T - Estimated initial cost of the
R business venture must be clearly
O indicated
D - should include the projected
U breakdown of allocation of the
C total cost
T - presents the source/s of funds
I - must also mention the estimated
O period to settle the funding source
N provided by creditors.
 EXECUTIVE SUMMARY
- points out the overall highlights of
the business plan as well as a
bird's-eye view of its sections
- must not provide a summary of the
different major sections of the
business plan
- must be written in a simple
language that can be easily
understood and at the same time
attract the attention and influence
the decision of the reader
 Executive Summary

include the following sections:

- Vision, Mission, Goals, and

Objectives of the Business
- Business model
- Business and product position
- Wealth improvement approaches
- Parties Supporting the business
 Vision, Mission, Goals, and
Objectives of the Business
Executive Summary
- embodies the fundamental
characteristics, nature,
philosophical values, identity, and
image of the business.
- must be clearly stated and easily
understood
- must be reviewed and revisited at
least every three years to
determine whether they are still
reasonable and achievable
 Business model
Executive Summary
- defines the perspective of the business in terms
of its structure, production, operation, and
financial activities that will lead to the
achievement of the VMGO
- must basically reflect the certain innovations that
will indicate the competitiveness of the business
in the industry
- must define how the business gives importance
to its relations with customers, creditors,
suppliers, and internal human resources
 Business and product position
Executive Summary
- help determine how the business defines its
coarse and the process of the accumulating
wealth
- tells the size of the market and the target market
share of the business and product
- must be able to convince the readers that the
proposed business has a competitive advantage
in the market
 Wealth and Improvement
approches
Executive Summary
- describes the methodologies or approaches that
will be taken by the business in order to:
1. Maintain a competitive advantage
2. Position the business in the market
3. Improve the market share
4. Maximize the utilization of the resources
- this also includes a brief discussion of the
marketing policies and financial operations of the
business, and the profitability level of the
industry and of the business
 Parties supporting the business
Executive Summary
- must include the description of the parties that
have a direct relationship with the business like:
1. Consumers
2. Creditors
3. Suppliers
4. Employees and staff
- must cover 3-5 pages
 ENVIRONMENTAL
ANALYSIS
- A strategic tool that helps determine the external
and internal factors affecting the performance of the
business. (political, economic, social, or
technological)
- may consist of at least 20 pages including the
graphical representations, tables, and computations
- considered the heart of the business plan
- consists:
• Global Analysis
• Societal Analysis
• Industry Analysis
 BUSINESS DESCRIPTION

- Presents the nature (merchandising,

service, manufacturing, or a hybrid) and
form (sole proprietorship, partnership, or
corporation) of the business to be
undertaken
- may cover 2-3 pages
- must include the innovative features of the
business
- reason/s for the selection of the form
 BUSINESS DESCRIPTION

must also include the following:

• product or service that it plans to
produce or serve
• various plant and office equipment
• size of the proposed business
• future parties with whom contacts
may be necessary
• personnel requirement
• Administrative operation
 ORGANIZATIONAL PLAN

- Provides a detailed description of the

business in terms of the following:
1. Form of the business organization
2. Liability of the owner or owners
3. Organizational Structure
4. Roles and responsibilities
5. Salary requirements
 PRODUCTION PLAN
- Presents or describes activities related to the
production of goods
- it is the result of the industry analysis, particularly
on the study of supply and demand and
consumer behavior
- includes the following:
1. Production schedule
2. Production process
3. Processing plant and equipment
4. Source of materials
5. Production cost
 OPERATION PLAN
- outlines the various activities, from the
acquisition of raw materials to the delivery of
the products
- covers the following areas:
1. Evaluation of suppliers
2. Materials requisition and receiving
procedures
3. Storage and inventory control system
4. Shipment system and control
5. Functions of support services
 MARKETING PLAN
- Details how the proposed business will sell its
product to the target consumers
- may consist of the following important sections:
1. Product
2. Place
3. Price
4. Promotion
5. People
6. Packaging
7. Positioning
 FINANCIAL PLAN
- accumulates and describes all the data expressed in
monetary units from the other sections of the business
plan
- simply collates and describes the various sets of
information derived from the other sections of the
business plan
- composed of the following important areas:
1. Major assumptions
2. Projected statement of comprehensive income
3. Projected statement of cashflows
4. Projected statement of changes in equity
5. Projected statement of financial position
6. Financial statement analysis
 APPENDIX

is like the business plan's own mini

library
holds the entire plan's supporting
documents in a clear, well-organized
fashion
consist of an array of documentation
Template that ranges from receipts and bank
statements to contacts and
inventories