THE BUSINESS PLAN

Topics: Management, Strategic management, Business plan Pages: 52 (1699 words) Published: April 11, 2015
THE BUSINESS PLAN

OBJECTIVES
 Identify the importance of business planning
and its advantages, as well as the step by
step procedure in preparing a business plan
 Enumerate the factors and other necessities
on how to manage and start a business
successfully

CONCEPT OF BUSINESS PLAN

 A well-written business plan is one that
contains all information necessary for the
financing source to make a decision even
without taking the entrepreneur
Anonymous

What is a Business Plan?
 Is a document that helps the small business
owner determine what resources are needed
to achieve the objectives of the firm, and
provides a standard against which to
evaluate.
 According to Hisrich & Peters. It is a written
document prepared by the entrepreneur that
describes all the relevant external and
internal elements involved in starting a new
venture.

What is a Business Plan
 Is a sort of a business blueprint and it keeps
the entrepreneur on the right track.

Other definition of a Business Plan
from the books of
Entrepreneurship
 It is thinking ahead of
 Objectives
 Strategies,
financing,
production,
marketing, profit prospects, and
 Growth possibilities.

Business planning should be
realistic?
 This means planning is based on the
available resources and is responsive to the
needs of the community.

It is also answering the

What to do?
How to do it?
Planning

When to do it?
What to expect in the future?

Business planning involves the attainment of goals
and the ways to accomplish such goals.

Purpose of a Business Plan
 To serve as management’s guide during the
lifetime of the business; and
 To fulfill the requirement for securing lenders
and investors.

Principles of Planning
Some principles of planning which have general application,
particularly for micro and small business:

 Planning must be realistic
 Planning must be based on felt needs
 Planning must be flexible
 Planning must start with simple projects

STAGES OF BUSINESS PLANNING
by Prof. Philip Kotler

 Unplanned stage.
 Budgeting system stage.
 Annual Planning stage
 Strategic Planning stage

CRITERIA OF EFFECTIVE
PLANNING

 1. the plan should state clearly its objectives.
 Such clear statement is necessary so
that those who will be involved in the
execution of the plan will understand,
accept, and support it.
2. The plan should provide measures for a
satisfactory accomplishment of the
objectives in terms of quantity, quality,
time, and cost.
3. The plan should state the policies, which
should guide people in attaining the
objectives.

CRITERIA OF EFFECTIVE
PLANNING
 4. The plan should indicate what department or unit
would be involved in accomplishing the objective. It
may or may not spell out the procedures for
performing the required work.
 5. The plan should be indicate the time, which should
be allowed for each activity. It may be necessary to
establish a target data for completing the activity.
 6. the plan should be specify the required resources
and their corresponding costs.
 7. the plan should designate the officers who will be
held accountable for the accomplishment.

Characteristics of a Sound
Business Plan
 1. Objectives
 2. Clear
 3. Logical and simple
 4. Flexible
 5. Stable
 6. Complete and integrated

WHY DO WE NEED A BUSINESS
PLAN?
 1. To project general picture of the business
project;
 2. To serve as a guide in implementing the
business or project;
 3. To serve as a major input to investment
decisions or major expenditure;
 4. to serve as reference or guide to policy
formulation and development

WHY DO WE NEED A BUSINESS
PLAN?
 5. To serve as guide for operation matters;
 6. To serve as a reference for bank loan or financing
purposes;
 7. To determine/estimate the detailed technical and
financial requirements; and
 8. to serve as an overall guide for the proponent...
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