Course Code & Title : Fine1 Entrepreneurial Management
Lesson Number : 6
Topic : Developing A Business Plan 2
LEARNING OBJECTIVES
1. Discuss the important role of SWOT analysis before starting the business
2. Discuss the importance of a business plan before business formation
3. Give the different phases of a business plan
4. Prepare a comprehensive business plan
PRE-ASSESSMENT
Direction: Read the questions carefully. Write your answer at the back of your paper.
1. Conduct SWOT analysis on your school or food chain.
2. How does the business name help in establishing success to the enterprise?
LESSON PRESENTATION:
STRENGTHS , WEAKNESSES, OPPORTUNITIES, AND THREATS ( SWOT )
SWOT ANALYSIS is an entrepreneurial tool in determining the profitability of the
business operation. Opportunities carries with it some risk involved and this should be
looked into carefully. The strengths and weaknesses are internal factors to the
entrepreneur must look at how strong he is to combat the weaknesses on his side and
this needs strong determination to succeed with caution. He may need long working
hours and advanced thinking to overcome the possible threats. Planning and
environmental analysis is needed to keep opportunities moving to his side of profitability.
Investment in money and effort should turn the tide of profit to the side of the
entrepreneur and this needs careful study and analysis.
The product must be evaluated along the following areas:
1. Product strength in the market must have the following:
a. Available Technology in Product Processing
b. The Source of Raw Materials must be Abundant and at Lower Price
c. Skilled Workers must be Available
d. Capital Investment in Machinery and Operating Expenditures
e. Expertise and Technical Skills of the Management Team
2. Characteristics of Weak Products and Weak Management
a. Poor Quality and High Price
b. Product Design and Appeal
c. Production Cost
d. Supply and Demand
e. Weak Product Management
3. Sustainable Product Opportunities in the Market:
a. Product Demand
b. Presence of Poor Quality in the Market
c. Government Policies and Support
d. Liberal Credit Terms and Interest Rates
4. Treats to Product Profitability and Market Expansion
a. Entrance of Competition
b. The Supply of raw materials will be limited as other competitors will be getting
the same suppliers.
c. The Emergence of Leftwing Labour Unions
d. The Presence of Double Taxation
e. Peace and Order in the Area of Business Operation
f. The Cost of Power Supply
The Entrepreneur should look deeper into the following areas:
1. The management Team
2. The Production Process
3. The Marketing Program
4. The Financial Management
THE IDENTIFICATION OF BUSINESS OPPORTUNITY
1. The Starting Point of Conceiving the Idea of the Type of Business
2. The Technical Feasibility and Time Frame
TIPS IN CHOOSING THE BUSINESS NAME
1. Easy to recall or remember
2. Pleasant meaning creates pleasant feeling
3. Easy to pronounce
4. Easy to spell
5. Related to the product
ORGANIZING THE BUSINESS ENTERPRISE
The prospective entrepreneurs before going into the intricate field or the business
world should first go into deep analysis of their personal and social attitudes . It is not
enough that you have the capital and resources to go into business as it involves not
only material assets but personal values and characteristics. Before venturing into the
field of business it is wise to develop entrepreneurial studies that will help determine the
feasibility of the project.
THE EVENT FORMATION PROCESS FOR ENTREPRENEURS
1. The Change in Life Path
2. The Desirability of the Business Concept
3. The Feasibility of Implementation
4. Forming the Business Enterprise
5. Stability of Business Income and Profit
BASIC PHASES OF BUSINESS PLAN
1. Management Structure and Component
2. Marketing and Distribution System
3. Production and Technology
4. Financial Management
Why Create a Business Plan?
• Saves time and money.
• Key to raising capital.
• Serves as an operations guide.
• Helps you organize your thoughts before starting.
Business Plan Components
1. Cover page
2. Table of contents
3. Executive summary
4. Mission, vision, and culture
5. Company description
6. Opportunity analysis
7. Marketing strategy and plan
8. Management and operations
9. Financial analysis and projections
10. Funding request
11. Exit strategy
12. Appendices
Business Plan Suggestions
1. Write for your audience.
2. Show that you have “skin in the game.”
3. Be clear and concise.
4. Use current industry data and reports.
5. Select a “voice” and stick with it.
6. Use a consistent, easy-to-read format.
7. Number and label items throughout the plan.
8. Present the plan professionally.
GENERALIZATION:
At the end of this module, the students should be able to know the important
role of SWOT analysis before starting the business . And the significance of a business
plan before business formation. The students should be able to Illustrate and create a
comprehensive business plan
EVALUATION
Direction. Read the questions carefully. Write your answer on the space provided.
1 Given the uncertainty and dynamic nature of the business environment, is a
business plan necessary? Cite the reasons for your answer.
2. Why is it important for start –up businesses to come up with monthly cash flow
projections especially during the first year?
REINFORCEMENT
1. Work as a group. If you already have a product idea for a possible
business, prepare a rough marketing plan. What decision will you
make regarding product, pricing ,place and promotions?
REFERENCES
Entrepreneurial Management - Mariefe Agustin – Acierto
DBA,LPT, FRI(Rs),CPME
Pathways to Entrepreneurship - Raymund B. Habaradas ,DBA
Tereso S. Tullao Jr .,Phd
