ENTREPRENEURSHIP
MODULE 2:
THE BUSINESS PLAN
GENERAL MAMERTO
NATIVIDAD NATIONAL HIGH
SCHOOL
SENIOR HIGH SCHOOL
GRADE 12
SHAYNE C. TAGLORIN
Subject Teacher
Learning Objectives
Recognize a potential market
(TLE_ICTAN11/12PC-1a-1)
identify the analyze the determine the define a determine the
different market need possible business plan importance
sources of product/s or and parts of a
business service/s that business plan
opportunities will meet the
market need
What is business plan?
a formal written description of
your business future by defining
your goals, strategies to meet
the goals, and the timeframe for
the achievement of those goals.
Is it necessary for you, as an
entrepreneur, to write your
own business plan?
As cited by Edralin (2016), the Department of Trade
and Industry through the Bureau of Small and
Medium Enterprise Development mentioned the
following reasons of writing a business plan.
Minimize or remove risk of
losing money
Investment on poorly researched
business that may resultto financial
instability should be avoided.You must
see all sides of the venture before letting
go of any resources.
Avoid costly mistakes
Unplanned decisions may result
to negative outcomes that may
hurt the business.
As cited by Edralin (2016), the Department of Trade
and Industry through the Bureau of Small and
Medium Enterprise Development mentioned the
following reasons of writing a business plan.
Assess actual performance
against set goals.
Having a clear goal will help you
achieve your target in terms of
sales, revenues or even expenses.
Organize the activities
beforehand
Thinking in advance, you must look at
the near and distant future. Contingency
plans must be present for anticipated
concerns that may arise.
As cited by Edralin (2016), the Department of Trade
and Industry through the Bureau of Small and
Medium Enterprise Development mentioned the
following reasons of writing a business plan.
Apply for financing from
lending institutions.
Having a clear goal will help you
achieve your target in terms of
sales, revenues or even
expenses.There are cases that
financial assistance from other
people or organization is needed
to start a business.
PARTS OF BUSINESS PLAN
I. Executive Summary II. Management and
Organization
III. Product/ IV. Market Plan
Service Plan
Financial Plan information
need to guide you:
V. Financial Plan Start up cost requirements
Financial Projections
Break even analysis
Budget
I. Executive Summary
This part can be found at the
beginning of the plan but is
the last to be accomplished
since this synthesizes the
whole plan. This contains a
brief introduction and
summarizes everything that
is relevant and important to
the prospect business
audience.
I. Executive Summary
• description of your proposed
business and business model
•description of the
marketopportunity you want to
captureor market problem the
business solves
•reasons why this is an
attractive business opportunity
•key distinctions or
differentiators of your business
versus competitors
I. Executive Summary
• overview of the sales, marketing,
and operations strategy and plan
•description of your executive
planning timeline
•key distinctions or
differentiators of your business
versus competitors
• overview of the projected financials
containing revenues, cost, profits,
and assumptions of your business
II. Management and
Organization
These are the information
needed to guide you:
• Company Name, Logo, and
Address
•Vision and Mission Statements
•Key Personnel
•Organizational Chart
•Ownership Capitalization,
Compensation, and Incentives
•External Management Support
III. Product/Service Plan
This part describes the highlight of the productor
service offered to the customers so that they will be
encouraged to patronize your product or service.It also
explainshow the products or serviceswill be accepted
and carried by the distribution channels.
•Purpose of your Productor Service
•Product’s/Service’s Unique
Features
•Material Requirements and
Sources of Supply
. Processing Equipment that will be Used to
Manufacture the Product or Render the
Service
III. Product/Service Plan
This part describes the highlight of the productor
service offered to the customers so that they will be
encouraged to patronize your product or service.It also
explainshow the products or serviceswill be accepted
and carried by the distribution channels.
•Production or Service Process and Controls
•Distribution Logistics
•Regulatory and Other Compliance
Issues
IV. MARKET PLAN
These are the information
This includes your needed to guide you:
business strategies, •Market Analysis
the target market, •Marketing and Sales
value proposition of Strategies
your product or •Product or Service
services that may Characteristics
increase the •Pricing Policy
company sales (Chen, Sales Projection
2019).
MARKET ANALYSIS
•This includes the process of how you
divide the total market into smaller
groups seeking similar needs and
wants (market segmentation) and
the characteristic analysis of the
business in relation to internal and
external factors.
SWOT ANALYSIS
SWOT Analysis, on the other
hand, is a popular tool to
evaluate the internal
environment pioneered by
George Albert Smith Jr. and
Ronald Christensen,
two Harvard business
professors (Aduana, 2016).
SWOT stands for Strengths,
Weaknesses,
Opportunities and Threats.
STRENGTHS
refer to strong
attributes or
capabilities of the
business that provide
great advantage in
exploiting the business
opportunity.
WEAKNESSES
are poor attributes or
deficiencies that give
disadvantage to the
business
Both strengths
and weaknesses are considered
internal origins, meaning they are
attributes inside
the business venture.
OPPORTUNITIES
are business situations
that must be exploited
due to their potential in
terms of profit and
growth.
THREATS
are possible external
factors that may harm
the business. Both
opportunities and
threats are outside
origins and are
attributes outside the
business.
Below is a sample SWOT Analysis of a Small Online
Bakeshop.
MARKETING AND
SALES STRATEGIES
•These are also known as the
product PUSH. These have
three key characteristics
that allow to perform
marketing function of
persuading customers to
buy right away. (Go, 2010)
1. TEMPORARY
•Sales promotions are
conducted at short
periods creating a sense
of urgency on the part of
the customers.
2. BETTER VALUE
•Sales promotions are
used to create short-term
differentiation by offering
a better product value.
3. BENEFICIAL
•Sales promotions
promote growth
sometimes even at
artificial level.
3. BENEFICIAL
Example:
7-11 stores offer promotional
sales, such as “Buy1-Take1” of
products at particular period.
At the same time, they offer
Cliqq Rewards to loyal
customers by getting Cliqq
points in every purchase which
in turn can be
exchanged to free or
discounted items.
PRODUCT
SERVICE CHARACTERISTICS
•This includes value proposition
of the product/service. Value
proposition answers the
question, why should your
customers buy from you and not
from other similar businesses?
These contain the convincing
reasons that buyers should see
that will make them purchase
your products/services.
PRODUCT
SERVICE CHARACTERISTICS
•EXAMPLE:
BDO: “We find ways”.
Before this pandemic,
while other banks operate
from 8AM-3PM Mondays
to Fridays, BDO offers
services until 6PM and
even operates during
weekends fulfilling their
promise of “finding ways”
for the customers.
PRICING POLICY
•This part specifies the price of
the product/service. It must be
noted that quality and price
cannot be separated in marketing
(Aduana, 2016). You must be
careful in setting the price of your
product/service considering the
costs of production, competitors’
pricing, and customers’
perception.
SALES PROJECTION
•This is also called sales forecast
or the prediction of the amount of
revenue your company expects to
earn at some point in the future.
This shows quantity of product
sold or service rendered and its
corresponding amount within a
given period.
V. FINANCIAL PLAN
This is a document
containing your current
financial situation as an
entrepreneur and long-
term monetary goals,
as well as tactics to
attain those objectives.
V. FINANCIAL PLAN
These are the information needed to
guide you:
START-UP COSTS
REQUIREMENTS – These
are expenses that you
will be needing during
the course of creating
a new business
These are the information needed to
guide you:
FINANCIAL
PROJECTIONS
These are estimates of
your future profits and
expenses
Example of Financial Projections
These are the information needed to
guide you:
BREAK-EVEN ANALYSIS
– This is a financial tool
that will help you
determine at what
stage (or period) your
company will start
gaining profit.
These are the information needed to
guide you:
BUDGET – This includes
the amount needed for
business operations as
well as sources of such
funds (equal shares or
through a creditor).
