lesson 2

1. Lesson 2: Basic
Concepts About
The Business Plan

2. Things I need to plan for to
make my business successful:

3. • 1. Why did you choose these to be a part of your
plan?

4. • 1. Why did you choose these to be a part of your
plan?
• 2. What factors will make your plan successful?

5. • 1. Why did you choose these to be a part of your
plan?
• 2. What factors will make your plan successful?
• 3. What factors are deemed as obstacles to your
plans?

6. Guide questions on possible
business ideas:
• What are the common activities people of your age
love to do?

7. Guide questions on possible
business ideas:
• What are the common activities people of your age
love to do?
• What are your unique skills that you can do
without support?

8. Guide questions on possible
business ideas:
• What are the common activities people of your age love
to do?
• What are your unique skills that you can do without
support?
• What are the things that your community needs? Are
these needs supplied well?

9. Guide questions on possible
business ideas:
• What are the common activities people of your age love to do?
• What are your unique skills that you can do without support?
• What are the things that your community needs? Are these needs
supplied well?
• What are the things that your community wants?

10. Guide questions on possible
business ideas:
• What are the common activities people of your age love to do?
• What are your unique skills that you can do without support?
• What are the things that your community needs? Are these needs
supplied well?
• What are the things that your community wants?
• Can your products be affordable for your target market?

11. Guide questions on possible
business ideas:
• What are the common activities people of your age love to do?
• What are your unique skills that you can do without support?
• What are the things that your community needs? Are these needs
supplied well?
• What are the things that your community wants?
• Can your products be affordable for your target market?
• How do you see yourself addressing the community needs?

12. The Business Plan
• The blueprint of individuals, organizations or
groups who would like to engage in business.
• Considered as bible of some individuals
• Can be checked from time to time to guide them in
carrying out their business ides

13. Purposes of a business plan:
• Presents a general picture of the enterprise.

14. Purposes of a business plan:
• Presents a general picture of the enterprise(
serves as a guide in business policy
formulation)

15. Purposes of a business plan:
• Presents a general picture of the enterprise(
serves as a guide in business policy
formulation
• Provides guidance for investment decisions
and capital expenditures.

16. Purposes of a business plan:
• Presents a general picture of the enterprise( serves as a guide in
business policy formulation
• Provides guidance for investment decisions and capital expenditures.
• Serves as guide in the implementation of the plan for business
including the marketing, production, organizational and financial
aspects of the enterprise.

17. Purposes of a business plan:
• Presents a general picture of the enterprise( serves as a guide in
business policy formulation
• Provides guidance for investment decisions and capital
expenditures.
• Serves as guide in the implementation of the plan for business
including the marketing, production, organizational and
financial aspects of the enterprise.
• Serves as selling tool for encouraging investment and financing.

18. Parts of a business plan
A. Executive summary
B. Introduction
C. Product or service description
D. Industry analysis
E. Market analysis
F. Marketing plan
G. Production or operational plan
H. Organizational plan
I. Financial plan
J. Appendices

19. Parts of a business plan
A. Executive summary
-contains a brief description of each part of the business
plan
-must be clear enough to catch the interest of a potential
venture capitalist or any interested individual who will
finance the business

20. Parts of a business plan
B. Introduction
-covers the compelling reason for selecting a particular project being
proposed
-directs the reader to the main contents of the business plan
-should include the idea, the rationale for the business, the problems
being addressed, the value proposition, and the potential benefits to
would-be financiers who maybe interested to commit their money to this
particular undertaking

21. The introduction presents…..
• Clear explanation of the business concept
-presents the rationale why the said proposal is considered to
make a good or have a very promising outcome as an economic
activity
- it may be a product or a service that addresses the need of a
market

22. The introduction presents…..
• Clear explanation of the business concept
-presents the rationale why the said proposal is considered to make a good or have a very
promising outcome as an economic activity
- it may be a product or a service that addresses the need of a market
• Available opportunity
-justify why the concept will have a market to serve or have a gap to fill in
-example, professionals working multiple jobs or are too busy would definitely want to have a
helping hand

23. The introduction presents…..
• Type of industry where the business concept
belongs
-gives some background about the industry

24. The introduction presents…..
• Type of industry where the business concept
belongs
-gives some background about the industry
• The target market
-defines the people who the business will serve

25. The introduction presents…..
• Type of industry where the business concept belongs
-gives some background about the industry
• The target market
-defines the people who the business will serve
• Key people involved
-who will handle the business operations
-key personnnel who will handle your business

26. The introduction presents…..
• Type of industry where the business concept belongs
-gives some background about the industry
• The target market
-defines the people who the business will serve
• Key people involved
-who will handle the business operations
-key personnnel who will handle your business
• Financial requirement
-should indicate the total amount of the proposed business concept

27. Parts of a business plan
C. Product or service description
-tackles the characteristics and the details of the proposed idea
-the name of the product or service should be describe first
-a clear understanding of the product must be settled first before other details are to
be identified
-details of the product such as properties, features, characteristics, possible sources
of raw materials or ingredients, potential market or costumers and other details should
be included

28. Parts of a business plan
D. Industry analysis
- shows a situational presentation, at least three to five years of current data,
trends and latest updates of the industry where the proposed business idea
belongs
-include the group of businesses in the same orientation, target market,
understanding the gap or the need of the industry, the size, growth, structure,
and other factors that may contribute to the success of the industry

29. Parts of a business plan
• E. Market analysis
-involves the search for, and analysis of, data that can be used to identify, isolate, describe, and
quantify a given market or group of costumers
Define the objectives of the study
• Who is your target market?
• What is the size of the market and your production capacity?
• What will be the nature of the operation and industry orientation of the business being
planned?
• How much sales is being projected?
• What is the price of the product or service being offered?
• How will the product reach the costumers in the most efficient manner?

30. Conduct a situational analysis of the market
• Seeks the background information on the relationship between the product and the market it wishes to serve.
Collect secondary data
- internal company records -private business research firms
-government publications -private directories
-registration data -university research organizations
- trade and professional associattions - foundations and institutes
-university research organizations - investment and brokerage firms
- foundations and institutes
- investment and brokerage firms

31. Parts of a business plan
F. Marketing plan
-comprehensive document or blue print that outlines a business advertising
and marketing efforts for the coming tear
-identifies almost all you need to know about your target costumers, how your
product will reach them and how you will maintain their loyalty so you can
expect a repeat purchase
-guided by the P’s of marketing or the marketing mix: Product, Place, Price,
Promotion, People, Packaging , Positioning and Productivity

32. Parts of a business plan
G. Production or operational plan
-lays down the specifics of operating or running the business, and
if the marketing plan has the P’s that make up the marketing mix,
the production or operational plan has the four M’s that comprise
the production or operation of a business: Materials, Machines, Men
and women, and Money

33. Parts of a business plan
H. Organizational plan
-details the human resource complement of the business
-describes the legal form that the business will take: sole
proprietorship, partnership or corporation

34. Parts of a business plan
I. Financial plan
-shows the financial or funding requirement of the
business
-also shows the financial projections of the business
from its startup stage up to the time it registers positive
income

35. Parts of a business plan
J. Appendices
-intended for miscellaneous items which may not be put
in the main part of the business plan such as photos,
contracts, certificates, permits and other papers related to
the business