Business Plan

Introduction to
Business Plan Preparation

Objectives:
1. Define business plan,
2. Specify the different sections of the business

plan, and
3. Identify the information included in the

Introduction section of the business plan.
Activity – FOUR PICS, ONE WORD!
W R I T T E N
D O C U M E N T
O P E N
O P E R A T E
B U S I N E S S
P L A N
● Based on the words that you have formed on the
previous activity; how do we define a Business
Plan?
What is Business Plan?
● A business plan is a detailed and integrated written document that
describes the various activities involved in opening and operating a
new entrepreneurial venture.
● A business plan is also a road map that provides directions so a

business can plan its future and helps it avoid bumps in the road. It is
the only single written document that must be prepared before opening
a new business or expanding an existing business. It provides a clear
direction to any uncertain business endeavor.
10 Reasons Why You Need to Prepare a Business
Plan for Small Business
1. To help you with critical decisions
2. To iron out the kinks
3. To avoid the big mistakes
4. To prove the viability of the business
5. To set better objectives and benchmarks
6. To communicate objectives and benchmarks
7. To provide a guide for service providers
8. To secure financing
9. To better understand the broader landscape
10.To reduce risk
Business Plan versus Feasibility Study
Feasibility study which serves as the forerunner of the business plan.
Two Major Tests to be Conducted every time a New Business Idea is

Created:
1. Test of Possibility
2. Test of Feasibility
Business Plan versus Feasibility Study
The primary objective of the feasibility study is to
determine whether the proposed business is feasible
or not in all areas. If the outcome of the feasibility
study is positive, then the entrepreneur prepares the
business plan.
MAJOR PARTS OF THE BUSINESS
1. Introduction
PLAN
2. Executive Summary
3. Environmental Analysis
4. Business Description
5. Organizational Plan
6. Production Plan
7. Operation Plan
8. Marketing Plan
9. Financial Plan
10. Appendix
Introduction
The introduction presents the general perspective of the business. It may
consist of one to two pages. It includes, among others, the following
sections:
1. Proposed Name of the Business

2. Address of the Business
3. Name of the Owner or Owners
4. Description of the Business
5. Location of the Business
6. Funding Requirement and Source
Proposed Name of the Business
The proposed business name must:
1. Reflect the business identify and image,

2. Promote the philosophical values and culture that
the business values the most,
3. Profess the brand identity of the product, and
4. Attract or influence the target costumers
Address of the Business
It is important that the address of the Business
is correctly written because all business
correspondence is mailed to the business
address. Raw materials and other
manufacturing supplies are also shipped by
the seller to the designated business address.
Description of the Business
A brief description of the business must include information
about the type of product or service that the business intends
to produce or provide. It may include a brief information
about the ultimate mission, vision, and objectives of the
business. The other products or services that the business
plans to produce or provide must also be mentioned in the
description of the business.
Location of the Business
The following factors should be considered when deciding on the
location of the proposed business:
1. Proximity to the target customers

2. Distance from the sources of raw materials, labor, and utilities
3. Availability and cost of transportation
4. Peace and order situation
5. Presence of direct competitors
6. The geographic and climatic conditions
Funding Requirement and Source
The estimated total initial cost of the business
venture must be clearly indicated. It should include
the projected breakdown or allocation of the total
cost, e.g., how much will b for building, fixtures,
equipment, supplies, and working capital. This
section also presents the source or sources of funds.
Form a group of five (5) and do the following. Follow the format below and
then share your output in class. Please be guided with the scoring rubrics
below.
1. Think of three possible names of your small business. Rank them
according to your preferences.
2. Indicate the proposed complete address your business.
3. Write your names as owners of the business.
4. Make a brief description of your business. You may include the
product or service that you plan to sell or serve.
5. Cite the reason for choosing the location.
6. Based on the nature and type of your proposed small business,
determine the initial funding requirement.
7. State also the possible source/s of funds.
Form a group of five (5) and do the following. Follow the format below and
then share your output in class. Please be guided with the scoring rubrics
below.

Business Plan

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Introduction to

Business Plan Preparation

2. Specify the different sections of the business

3. Identify the information included in the

● A business plan is also a road map that provides directions so a

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

1. Proposed Name of the Business

1. Reflect the business identify and image,

1. Proximity to the target customers

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