EM - Chapter 1 - 061204

PLANNING THE
ENTERPRISE
BUSINESS PLAN
• is a written description of your business's future.
• can help perform a number of tasks for those who write and read them.
They're used by investment-seeking entrepreneurs to convey their vision
to potential investors. They may also be used by firms that are trying to
attract key employees, prospect for new business, deal with suppliers or
simply to understand how to manage their companies better.
BUSINESS PLAN FORMAT
CONTENTS OF THE BUSINESS
PLAN
THE BUSINESS CONCEPT AND
THE BUSINESS MODEL
• Contains the essence or purpose of the enterprise.
• Introduces to the target customers the product.
• Product concept should be translated into a business model.
• A business model is a formula on how the enterprise exactly plans to
make money.
• Four areas of money making:
• How to raise revenue?
• What will be the cost of doing business?
• What will be the major investment of the enterprise?
• How will the business finance its investment & growth?
THE BUSINESS GOALS: VMGO
AND PERFORMANCE TARGETS
• Show the long term plans of the enterprise. It involves the Vision, mission,
objectives, key result areas, and performance indicators of the enterprise.
• See example case 1. Double hapiness.
THE EXECUTIVE SUMMARY
• Contains everything that is relevant and important to the business
audience.
• It should intriduce and highlight the good qualities of the ff:
• The business proponents and their partners
• The enterprise organization and its capabilities
• The technology providers and their expertise and experience; and
• The suppliers and all the major service providers.
• it should render all the major institutional, market, operations, and
organizational strategies previously cited into financial strategies and
forecasts.
• Must also contain the environmental and regulatory requirement
• Also must contain the capital structure of the proposed business
THE BUSINESS PROPONENTS
• Contains the information about the business proponents or stakeholders.
• Four types of stakeholder:
• Resource mobilizers and financial backers
• Technology providers and applicators
• Governance and top management
• Operating and support team
TARGET CUSTOMERS AND MAIN
VALUE PROPOSITION
• Target customers must be of sufficient size, sufficient paying capacity,
and have sufficient interest to purchase the products being offered by the
enterprise.
• Main value proposition is tg unique selling proposition of the enterprise.
• Pinpoint what customers buy, how they buy, when they buy, where they
buy, and what convinces them to buy.
MARKET DEMAND AND SUPPLY, INDUSTRY
DYNAMICS, AND MACRO ENVIRONMENTAL
FACTORS
• The business plan should estimate the total market supply and demand for the
product offerings
• Should also discuss the relevant business dynamics:
• Their competitors, including the advantages & disadvantages, and strategies they
employed
• The suppliers (capabilities & bargaining power)
• Channels of distribution (effective or not?)
• Macroenvironment:
• Social environment
• Political environment
• Economic environment
• Ecological environment
• Technological environment
PRODUCT/SERVICE OFFERING:
DESCRIPTION, EVOLUTION, AND
JUSTIFICATION
• The products/services must be described by highlighting the features and
attributes that would most appeal to the target customers. The business
plan should also prove that the products/services would be accepted and
carried by the distribution channels.
ENTERPRISE STRATEGY AND
ENTERPRISE DELIVERY SYSTEM
• The business should expound on the Enterprise strategy (ES) by mapping
the competitive landscape and by situating the enterprise and its
competitors as to their strategies and chosen positioning.
• Enterprise Delivery System
• Input
• Throughput
• Output
• Marketing
• Desired outcomes
FINANCIAL FORECASTS: EXPECTED
RETURNS, RISKS AND CONTINGENCIES
• Compitation of the Return on Sales, Expected Return on Assets or
investment and expected return of stockholders equity
• Business plan should also calculate the long-term returns, using the time
value of money.
• Business plan should then evaluate both the business risks and tye
financial risks involved.
ENVIRONMENTAL AND
REGULATORY COMPLIANCE
• The business pla must articulate the laws, rules, and regulations
governing the business, and the industry that the enterprise is in. it
should ascertain that all the necessary permits, licenses and authority to
use proprietary intellectual capital had either been secured or would
definitely be secured.
• The business plan should also assure the reader that all the necessary
local government ordinances and barangay ethics would be followed by
the enterprise.
CAPITAL STRUCTURE AND FINANCIAL
OFFERING: RETURS AND BENEFITS TO
INVESTORS, FINANCIERS AND PARTNERS
• Contains the capital structure and financial offerings of tge enterprise
including some discussions on who are the investors, the financiers, and
the partners of the enterprise.
• Business plan must appeal to its target audience. It must highlight for
them the main features of tge business plan that they are looking for.
ASSIGNMENT:
• Using the components and format in making business plan make your
own business plan. (Deadline: Next week class)

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PLANNING THE

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