BESTLINK COLLEGE OF THE PHILIPPNES – BULACAN INC.

Road 1, Minuyan Proper, City of San Jose Del Monte, Bulacan

THE BASICS OF A BUSINESS PLAN (FOR DUMMIES)

Starting a business can be exciting and challenging at the same time. The first step to success
is creating a solid business plan. In this chapter, we’ll break down the basics to make it simple,
even if you have zero experience.
What Is a Business Plan?
A business plan is a written document that describes your business’s goals and how you plan
to achieve them. Think of it as a roadmap that outlines:

❖ What your business is

❖ How it will operate
❖ Who your customers are
❖ How much money you need to start
❖ How you’ll make money

The goal is to use this document not only to guide your actions but also to present to potential
investors, banks, or partners. It tells them, “I have a plan, and here’s why you should trust me
with your money.”

Why Do You Need a Business Plan?

Here’s why a business plan is so important:

1. Clarifies your vision: Writing things down helps you solidify your business idea.
2. Attracts investors: A good business plan gives investors the confidence to fund your
business.
3. Guides your actions: It's a step-by-step guide to achieving your goals.
4. Tracks progress: You can measure your success by comparing actual results to your
plan.

Key Sections of a Business Plan

A business plan usually includes the following key sections:

1. Executive Summary
A brief overview of your entire plan. Though it's written last, it appears at the start of your plan
and should grab the reader’s attention.

2. Business Description
Explains what your business is all about, including your industry, structure, and what sets
you apart from the competition.

3. Market Analysis
An analysis of your target market, your competitors, and how you fit into the market. What
makes you different, and why will customers choose you?

4. Organization & Management

Details of your business structure, the roles of key team members, and who will run the
day-to-day operations.

Learning Activity Sheet

ECC10 – Business Plan Preparation
 BESTLINK COLLEGE OF THE PHILIPPNES – BULACAN INC.
Road 1, Minuyan Proper, City of San Jose Del Monte, Bulacan

5. Products or Services
Describes what you’re selling or offering. What problems does it solve? How will you price it?

6. Marketing & Sales Strategy

How will you attract and retain customers? What marketing strategies will you use to promote
your product or service?

7. Funding Request
If you’re seeking funding, outline how much money you need, how you plan to use it, and your
proposed repayment schedule (if applicable).

8. Financial Projections
A look at the numbers. How much money do you expect to make? This section includes income
statements, balance sheets, and cash flow statements.

9. Appendix
Optional section for additional supporting information like resumes, permits, or product
images.

Tips for Writing Your Business Plan

Be Clear and Concise: Keep your language simple, avoiding jargon or complicated
language.
Do Your Research: Know your market and competitors well. It strengthens your plan.
Tailor It to Your Audience: Customize your business plan depending on whether it’s for
you, an investor, or a lender.
Update It Regularly: A business plan isn’t set in stone. As your business grows, revisit
and revise it.

Summary
A business plan helps transform your idea into a real, actionable business. It’s a tool that can
guide your business to success while attracting potential investors or partners. Keep it clear,
well-researched, and concise, and update it as you grow.

WRITING AN EFFECTIVE EXECUTIVE SUMMARY

The Executive Summary is arguably the most critical part of any business plan. It’s your first
chance to grab the reader's attention, whether that’s an investor, lender, or partner. Think of it
as your elevator pitch: short, powerful, and engaging.

Key Points to Consider:

Write It Last: Even though it’s the first section, it should be written last. This way, you
can summarize the key points of your entire plan concisely.
Keep It Brief: Ideally, it should be one to two pages long. Investors are busy, so aim to
communicate the most important details quickly.
Highlight Your Unique Selling Proposition (USP): What makes your business stand out?
Why is it a good investment?

Learning Activity Sheet

ECC10 – Business Plan Preparation
 BESTLINK COLLEGE OF THE PHILIPPNES – BULACAN INC.
Road 1, Minuyan Proper, City of San Jose Del Monte, Bulacan

Include Key Financial Information: If seeking funding, give a brief overview of your
financial needs, projected sales, and profitability.
Be Persuasive: This is your chance to sell your business idea. Showcase your passion,
vision, and why it’s bound for success.

Key Sections of an Executive Summary:

Business concept: What does your business do?

Market opportunity: Who is your target market, and why is there a demand?
Financial highlights: How much money do you need, and what are the projected
returns?
Current status: What milestones have you achieved so far?

COMPANY VISION, MISSION, AND VALUES

A strong company foundation starts with a clear vision, mission, and set of values. These guide
your business’s decisions, culture, and direction.

Vision:
The vision is your long-term goal. It answers the question, “Where do you see your business in
the future?” A vision should inspire and provide a clear direction. It’s your dream and the
impact you aim to have.

Example: "To become the leading provider of sustainable fashion globally, reducing
environmental impact while empowering local artisans."

Mission:
Your mission is the roadmap to achieving your vision. It defines what your company does today
and how it serves its customers. A good mission statement is specific, actionable, and
customer-focused.

Example: "We create high-quality, eco-friendly clothing that blends modern design with
traditional craftsmanship, ensuring fair wages and sustainable production."

Values:
Values are the guiding principles of your company. They define your culture and the ethical
standards you’ll uphold. A strong value system builds trust with customers and employees
alike.

Example: Integrity, sustainability, innovation, inclusivity, and customer commitment.

Why It Matters:
Guidance: Vision, mission, and values provide a compass for decision-making.
Attraction: A compelling vision and mission help attract customers, partners, and talent who
share your goals.
Consistency: They ensure consistency in branding, marketing, and business practices.

Learning Activity Sheet

ECC10 – Business Plan Preparation
 BESTLINK COLLEGE OF THE PHILIPPNES – BULACAN INC.
Road 1, Minuyan Proper, City of San Jose Del Monte, Bulacan

BUSINESS MODEL AND STRUCTURE

Your business model defines how your company creates, delivers, and captures value. It
answers fundamental questions about how your business will operate and how it will make
money.

Key Elements of a Business Model:

Revenue Streams: How does your business make money? Is it through direct sales,
subscription services, advertising, or another method?
Cost Structure: What are your main expenses? Are they variable or fixed?
Customer Segments: Who are your target customers, and how do you serve them?
Value Proposition: What problem are you solving, and how does your product or service
benefit customers?
Distribution Channels: How do you deliver your product or service to customers?

Example of a Business Model:

For an e-commerce clothing store:

▪ Revenue Stream: Online sales from the store.

▪ Customer Segment: Environmentally conscious consumers aged 18-35.
▪ Cost Structure: Manufacturing, shipping, website maintenance.
▪ Value Proposition: Affordable, fashionable, eco-friendly clothing.
▪ Distribution Channel: Direct-to-consumer via website.

Business Structure:
Your business structure determines how your company is legally organized and managed. This
can be:

▪ Sole Proprietorship: Simple, but you are personally liable for all debts.
▪ Partnership: Shared ownership, but also shared risk.
▪ Corporation: Limited liability, but more complex to set up and maintain.
▪ Limited Liability Company (LLC): Combines the benefits of a corporation and a
partnership.

Why Business Structure Matters:

▪ Legal Protection: It affects your personal liability.
▪ Tax Implications: Different structures have different tax benefits and obligations.
▪ Funding Options: Certain structures (like corporations) may have easier access to
investors.

Conclusion
Writing an effective Executive Summary, defining a strong Vision, Mission, and Values, and
establishing a clear Business Model and Structure are essential steps in building a successful
business. These components form the core of a solid business plan, guiding your company’s
direction, inspiring stakeholders, and helping you achieve financial and operational success.

Learning Activity Sheet

ECC10 – Business Plan Preparation
 BESTLINK COLLEGE OF THE PHILIPPNES – BULACAN INC.
Road 1, Minuyan Proper, City of San Jose Del Monte, Bulacan

SAMPLE EXECUTIVE SUMMARY

Executive Summary

Business Name: EcoThreads

Industry: Sustainable Fashion
Founded: 2024
Business Structure: Limited Liability Company (LLC)
Location: San Francisco, CA

Business Concept
EcoThreads is an online retail brand offering high-quality, eco-friendly clothing made from
sustainable materials such as organic cotton, hemp, and recycled fibers. We partner with local
artisans in underdeveloped regions to create modern, stylish apparel that reflects ethical
production practices and environmental responsibility. Our products target environmentally-
conscious consumers who value sustainability without compromising on fashion.

Market Opportunity
The global sustainable fashion market is experiencing rapid growth, valued at $6.35 billion in
2023 and projected to grow at a compound annual growth rate (CAGR) of 9.8% by 2030.
EcoThreads is positioned to tap into this expanding market, targeting millennials and Gen Z
consumers who prioritize eco-friendly products. With increasing awareness of environmental
issues like climate change, more customers are shifting toward sustainable purchasing habits.
EcoThreads aims to capitalize on this trend by offering affordable yet stylish green alternatives
to fast fashion.

Products and Services

EcoThreads offers a range of fashion-forward clothing, including t-shirts, dresses, outerwear,
and accessories for both men and women. Our materials are certified organic, and our
production process ensures minimal carbon footprint. Additionally, we provide a "Rewear"
program, where customers can return used EcoThreads clothing for recycling or upcycling in
exchange for store credit.

Competitive Advantage
EcoThreads differentiates itself through its commitment to ethical fashion. Unlike many
competitors who claim sustainability, we back our claims with third-party certifications, full
transparency in our supply chain, and partnerships with Fair Trade artisans. Our brand’s
unique value proposition lies in its blend of eco-consciousness, affordability, and high-quality
design, giving customers both style and substance.

Financial Highlights
EcoThreads is seeking an initial investment of $500,000 to fund product development,
inventory, marketing, and online store improvements. Based on market research, we project
revenues of $1.2 million in the first year, with an operating margin of 20%. We anticipate
breaking even within the first 18 months and generating a net profit of $250,000 by Year 3.

Learning Activity Sheet

ECC10 – Business Plan Preparation
 BESTLINK COLLEGE OF THE PHILIPPNES – BULACAN INC.
Road 1, Minuyan Proper, City of San Jose Del Monte, Bulacan

Current Status
EcoThreads is currently in the final stages of product development, with sample designs ready
for production. We have established partnerships with three local artisan cooperatives and
secured commitments from eco-conscious influencers to promote our brand. Our e-commerce
platform is under development, with a planned launch in the first quarter of 2025.

Funding Request
We are seeking $500,000 in seed funding to support our launch. These funds will be allocated
toward initial inventory, marketing campaigns, operational costs, and technology development.
In return, we offer investors a 20% equity stake in the company.

Learning Activity Sheet

ECC10 – Business Plan Preparation
 BESTLINK COLLEGE OF THE PHILIPPNES – BULACAN INC.
Road 1, Minuyan Proper, City of San Jose Del Monte, Bulacan

Name: ____________________________________________ Date: _________________

Year and Section: ________________________________ Instructor: Mr. Rodolfo R. Turo Jr. Score

Written Task ___

Instructions: Choose the best answer for each question. Encircle the correct answer.

1. What is the primary purpose of a business 7. The vision statement of a company answers
plan? which question?
a) To serve as a marketing tool a) What do we do today?
b) To clarify the business’s goals and how to b) What are our current expenses?
achieve them c) Where do we see the company in the future?
c) To set the price of products d) How do we make sales?
d) To describe how to hire employees
8. Which of the following describes a company’s
2. Which section of the business plan should be mission?
written last but appears first? a) Long-term goal
a) Financial Projections b) Ethical standards
b) Business Description c) Current actions and customer focus
c) Executive Summary d) Future product lines
d) Market Analysis
9. Values in a business plan help:
3. What is the most important reason for a) Guide decision-making and build trust
keeping the language in your business plan b) Reduce competition
simple? c) Decrease operational costs
a) To reduce printing costs d) Increase marketing budgets
b) To impress competitors
c) To ensure investors understand it clearly 10. Which of the following is part of a business
d) To save time model?
a) Customer support policies
4. A business plan is crucial because it helps b) Product pricing
you: c) Revenue streams
a) Avoid taxes d) Employee wages
b) Compare actual results with your goals
c) Hire better employees 11. What is the main focus of the “Products or
d) Find a good location Services” section of a business plan?
a) Describing how products solve customer
5. What does the "Market Analysis" section of a problems
business plan focus on? b) Detailing marketing strategies
a) The company’s financial needs c) Highlighting the company’s leadership team
b) The company's organizational structure d) Summarizing financial projections
c) The target market and competitors
d) The company’s mission statement 12. Which business structure offers limited
liability and is often more complex to set up?
6. The best time to update your business plan a) Sole proprietorship
is: b) Partnership
a) Only when seeking investors c) Corporation
b) Whenever your business grows or changes d) Limited Liability Company (LLC)
c) At the end of the year
d) Before hiring employees

Learning Activity Sheet

ECC10 – Business Plan Preparation
 BESTLINK COLLEGE OF THE PHILIPPNES – BULACAN INC.
Road 1, Minuyan Proper, City of San Jose Del Monte, Bulacan

13. A key advantage of the Limited Liability 17. The Funding Request section should
Company (LLC) structure is: include:
a) Simple tax reporting a) A list of products and services
b) Shared ownership and profits b) A breakdown of costs and repayment plans
c) Combining the benefits of a corporation and c) A detailed market analysis
partnership d) A review of competitors
d) High level of legal protection
18. What is the purpose of the Financial
14. In the Executive Summary, which of the Projections section?
following should you highlight? a) To provide a long-term marketing plan
a) Product descriptions b) To offer insight into the company's financial
b) Key financial needs and projections future
c) Employee hiring strategy c) To explain the company's values
d) Customer feedback d) To describe customer service policies

15. How does a strong business plan attract 19. Which of the following best describes a
investors? "Value Proposition"?
a) By offering discounts on products a) The legal status of the business
b) By showing them how the business will make b) A statement about why customers should
money choose your business
c) By having a long appendix c) A method for collecting payments
d) By providing detailed employee information d) An analysis of competitors

16. Which section outlines how you will reach 20. Why is it important to tailor your business
your customers and make sales? plan to your audience?
a) Funding Request a) To ensure it aligns with your vision
b) Marketing & Sales Strategy b) To make it more concise
c) Organization & Management c) To meet the specific interests and
d) Executive Summary expectations of the reader (e.g., investors,
lenders)
d) To reduce production costs

Analysis and Exploration ___

Think of a sample business, then;
Your answers must be in printed form.
1. Draft an Executive Summary for a business idea.
2. Develop a Company Description for a sample business.

Learning Activity Sheet

ECC10 – Business Plan Preparation