Lesson 4: Business Plan Contents – Enterprise Strategy, Financial Forecasting, Compliance, and Capital Structure

Enterprise Strategy

A set of choices and actions aimed at gaining a sustainable competitive advantage in business.

Input

Acquiring human, financial, and physical resources.

Operations

Converting inputs into products/services.

Marketing

Packaging, pricing, promoting, selling, and distributing the output.

Business Outcomes

Includes high customer satisfaction, sales volume, market reach, financial returns, and productivity

Financial Forecasting

An estimate of a business’s financial future, including capital investment, funding sources, and expected returns.

Balance Sheet

A snapshot of the business's financial position at a given time, showing assets, liabilities, and equity.

Income Statement

Reports revenues, expenses, and profits over a specific period.

Cash Flow Statement

Shows the movement of money in and out of the business, ensuring enough liquidity to cover expenses.

Tax Identification Number (TIN)

Issued by the Bureau of Internal Revenue (BIR) for tax purposes.

Barangay Clearance

Approval from the local barangay for business operation

DTI Business Name Registration Certificate

Required for sole proprietorships.

Mayor’s Permit/Business Permit

Permission from the local government to operate.

Sanitation and Fire Safety Permits

Ensures business safety and hygiene.

SEC Certificate

Required for corporations and partnerships.

Equity Capital

Funds provided by business owners and shareholders

Contributed Capital

Money originally invested in exchange for ownership.

Retained Earnings

Profits reinvested for growth and expansion.

Debt Capital

Borrowed money that must be repaid with interest.

Long-Term Bonds

Loans paid over several years.

Vendor Financing

Selling a product before paying the supplier.

Policyholder Float Financing

Used by insurance companies to earn investment returns before paying claims.