Business Plan

Business Plan

  • Definition of a business plan

    • Detailed and integrated written document

    • Describes activities for a new venture

  • Importance of a business plan

    • Acts as a roadmap for business

    • Helps in planning and avoiding obstacles

    • Essential before opening or expanding a business

REASONS

  • 10 reasons to prepare a business plan for small businesses

    • Help with critical decisions

    • Iron out the kinks

    • Avoid big mistakes

    • Prove business viability

    • Set better objectives and benchmarks

    • Communicate objectives and benchmarks

    • Provide a guide for service providers

    • Secure financing

    • Better understand the broader landscape

    • Reduce risk

Two Major Tests to be Conducted every time a New Business Idea is Created

  • Test Of Possibility

    • The test of possibility on the new business should have a positive result, so that the test of feasibility or viability will be conducted.

  • Test of Feasibility

    • Feasibility study determines business is feasible in all areas

Major Parts of Business Plan

  • Major parts of a business plan

    • Introduction

    • Executive Summary

    • Environmental Analysis

    • Business Description

    • Organizational Plan

    • Production Plan

    • Operation Plan

    • Marketing Plan

    • Financial Plan

    • Appendix

Introduction

  • Components of a business plan

    • Introduction

      • General perspective of the business

    • Proposed Name of the Business

      • Reflect business identity and image

      • Promote values and culture

      • Profess brand identity

      • Attract target customers

    • Address of the Business

      • Importance of correct address

      • Need for an email address

    • Name of the Owner

      • Properly stated owner's name

      • Details for sole proprietorship, partnership, or corporation

    • Description of the Business

      • Information about products/services

      • Mission, vision, and objectives

    • Location of the Business

      • Factors for selecting business location

    • Funding Requirement and Source

      • Total initial cost breakdown

      • Sources of funds

      • The estimated period to settle the funding source provided by the creditors must also be mentioned.

        • Think of three possible names of your small business.

        • Indicate the proposed complete address your business.

        • Write your names as owners of the business.

        • Make a brief description of your business.

        • Cite the reason for choosing the location.

        • Based on the nature and type of your proposed small business, determine the initial funding requirement.

        • State also the possible source/s of funds.