BUSINESS PLANNING

I. Objectives• Define business plan.• Analyze the reasons why a business plan is

necessary• Understand and value the importance of

government programs for entrepreneurs• Describe the different components of a

business plan• Create a business plan for a virtual business• Critique a business plan

Do successful businesses happen by chance (or by luck)?

Do you think about your own future or you’re taking a ‘wait and see’ (by chance or by luck) attitude?

[Business Plan]

- Management tool that sets short-term

objectives and defines necessary steps to

achieve them.

What is planning?Planning is thinking ahead of

objective, strategies, production, financing,

marketing, growth possibilities and profit prospects.

Business Planning

Planning is ..

what to do.how to do it.when to do it.

what to expect in the future.

Principles in Planning Planning must be realistic.

- It must be based on available resources, such as financial, human

and physical resources.Planning must be based on felt needs.

- Goals and objectives of the entrepreneur suits the needs of the

consumers in the community.

Planning must be flexible.-Need, economic conditions and

resources change from time to time. Thus, planning should be adjusted to

such changes.

Planning must start with simple projects.

Government Programs• 1. Magna Carta for Small enterprise

R.A 6977- An act to promote, develop and

assist small and medium scale enterprises through the creation of a small and

medium enterprise development (smed) council, and the rationalization of

government assistance programs and agencies concerned with the development.

2. Kalakalan 20 R.A. 6810- An act establishing the magna

carta for countryside and barangay business enterprises, granting exemptions from any and all

government rules and regulations and other incentives and benefits therefor, and for other purposes.

3. Micro-Enterprise Development Program

- The program’s objective is to increase income and improve living

condition in low-income municipalities.a. Provision of financial assistance for livelihood

project in low-income municipalitiesb. Development of capabilities in livelihood program

implementation in low-income municipalities: Financial Assistance Technical Assistance

4. Self-Employment Loan Assistance Program

- The program’s rationale is that the rural poor is in need of financing facility for

gainful entrepreneurial activities. a. Provision of credit for micro entrepreneursb. Creation of employment and enhancement of

income in the rural areasc. Development and strengthening of NGO

capabilities for the livelihood projects

Components of Business Plan

A. Executive Summary

1. Mission and Vision Statement2. Summary of the business plan parts

[The purpose of an executive summary is to provide a quick and concise overview of the business. This is were you self yourself,

and your idea!]

II. Business Description

1.Product/Services for sale

2.Creators of the business

3.Business location

III. Goals and Objectives

1.Short-term

2.Long-term

IV. Marketing Plan1. Customer need2. Analysis of competition3. Target market analysis4. Price

[Describe the market’s characteristics, your target customer’s profile, the competition, and how you plan to gain an advantage over them to create a successful venture; Marketing plans usually address four areas: product offered, price charged, distribution system,

and promotional efforts.]

V. Financial Plan1. Start-up investment and other costs2. Projected costs, expenses, and

revenues

[Describe the current financial status and present forecasts of future financial

statements.]

VI. Organizational Plan1. Form of ownership2. Organizational chart3. Job descriptions