What is a business plan?

It is a formal written document

containing business goals, the
methods on how these goals can
be attained, and the time frame
that these goals need to be
achieved.
 *
*Some business plan are written prior to
setting up an enterprise.

*Other business plan are written during

the first few years of the enterprise in
order to guide the entrepreneur on
which strategies would be most
beneficial for the enterprise to take.
*

*Entrepreneur
*Investors and cautious financiers
*Managers and staffs of the organization
*
I. A. The Business Concept and the
Business Model
A business concept contains the essence of
the enterprise in a concise but powerful
manner. It stresses the value of the product
offering to the target customers who would
most likely buy it. The product concept must
then be translated into business model. A
business model is a formula on how the
enterprise exactly plans to make money out of
the business.
B.The Business Goals: Mission, Vision,
Objectives, and Performance Targets

❖The business goals show the future and long-

term prospects of the enterprise.
❖The vision and the mission statements must
then be translated into measurable end
results, more popularly called objectives.
❖Objectives must be more specific than the
vision and the mission statement. They should
be measurable, achievable, and time-bound.
❖The objectives should be translated into key
result areas (KRAs). KRAs are the qualitative
manifestations that the objectives are being
achieved.
II. The Executive Summary
The executive summary contains everything that
is relevant and important to the business
audience. It must contain the major
argumentations of the business proponent on why
the business will work and succeed.
_____________________________
1. The business proponents and their partners;
2. The enterprise organization and its
capabilities;
3. The technology provider and their expertise
and experience;
4. The suppliers and all the major service
providers.
❖The executive summary should discuss and
justify the Enterprise Strategy and
Enterprise Delivery System.
-The Enterprise Strategy builds and develops
the game plan for attaining competitiveness.
The Enterprise Delivery System is the entire
process of converting input (resources) into
output and these output into outcomes.
❖The executive summary must also contain a
section on the environmental and regulatory
compliance of the proposed business, as well
as the more proactive programs to become a
more responsible corporate citizen.
❖The executive summary should present the
capital structure of the proposed business
and show how this structure will respond to
the investment programs and financial
forecasts of the enterprise.

❖The executive summary can only be written

last in order to capture the findings and
insights of the other parts, but for
presentation purposes, it is placed in the
first part of the business plan.
III. The Business Proponents
This contains information about the
business proponents or stakeholders.
❖Four types of stakeholders:
1.resource mobilizers and financial backers –
they will want to know who else are on board to
share the burden of raising money to see the
whole thing through.
2. technology providers and applicators – they
will want to know if there will be sufficient funds
to pay for the technology
3. Governance and top management – they will
want to know what strategies and performance
indicators are being proposed.
4. Operating and support team - they will want
to know what programs, activities, tasks, and
resources would be in place.
IV. The Target Customers and the
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. The Main Value
Proposition is the unique selling
proposition of the enterprise.
V. Market Demand and Supply,
Industry Dynamics, and Macro
Environmental Factors
❖The macro-environment factors (SPEET):
1.Social environment – includes the
demographics and cultural dimensions that
govern the relevant entrepreneurial
behavior.
2. Political environment – defines the
governance system of the country or the
local area of the business.
3. Economic environment – this is mainly
driven by supply and demand forces.
4. Ecological environment – includes all
natural resources and the ecosystem that
defines the habitat of man, animals, and
plants.
5. Technological environment – new
scientific and technological discoveries
often lead to the launch and
commercialization of new products with
superior attributes or to rendering the old
ones obsolete.
VI. 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.
VII. Enterprise Strategy (ES) and
Enterprise Delivery System (EDS)
❖The business plan should then show how
the Enterprise Delivery System would
enable the business to implement the
Enterprise Strategy.
❖Input – Throughput – Output – Outcomes
❖The EDS involves the harnessing of
human, money, and physical resources
from well-selected sources.
❖The EDS serves as the enabler of the ES.
What should be the business outcomes?
✓High customer satisfaction levels;
✓High sales volume, market share, and
market reach;
✓High financial returns;
✓High people performance, productivity,
and morale levels.
VIII. Financial Forecasts; Expected Returns,
Risks, and Contingencies
❖The business plan must translate everything
into financial forecasts and outcomes.
❖The important calculation are expected
return on sales, expected return on
assets/investments, and expected return on
stockholders’ equity.
❖The business plan should also calculate the
long-terms returns, using the time value of
money.
❖The business plan should then evaluate both
the business risks and the financial risks
involved
IX. Environmental and Regulatory
Compliance

❖The business plan should articulate the

laws, rules, and regulations governing
the business, and the industry that the
enterprise is in. it should ascertain that
all necessary permits, licenses, and
authority to use proprietary intellectual
capital had either been secured.
X. Capital Structure and Financial
Offering: Returns and Benefits to
Investors, Financiers, and Partners

❖This section describes and

analyzes your company’s capital
requirements and profit potential.