M

St
OD
UL
Pr
ep
a
E
arin
g
3 rt
th
e
.C
Bu
si
ne
ss
Pl
OO
an
P
Start.COOP
MODULE 3
Preparing the Business Plan

I
 Start.COOP by International Labour Organization (ILO) is licensed under a Creative Commons
Attribution-NonCommercial-ShareAlike 4.0 Unported License.

Start.COOP

Start.COOP has been developed as a low-cost, easy to use training tool for those interested in
starting and launching a cooperative in a participatory and efficient manner. It draws on technical
content from existing materials in different ILO cooperative training tools and peer-to-peer, activity
based learning methodology from the ILO’s Community-Based Enterprise Development (C-BED) pro-
gramme. The Start.COOP training tool has been divided into four modules that correspond to each
phase of the cooperative formation process to give you time to reflect on the importance of what
you are doing at a given time and to see how it fits into the big picture. The focus of the Start.COOP
modules is on the decisions to be made at each step with a view to increasing chances of success.

At the end of the training you will be able to:

• Identify the core members of your cooperative
• Define your business idea
• Research the feasibility of your business idea
• Prepare your business plan
• Decide on the organizational set-up of your cooperative

To learn more about the ILO’s work on cooperatives visit www.ilo.org/coop or email:
[email protected]
To learn more about the ILO’s peer-to-peer, activity based learning methodology visit
www.cb-tools.org

Acknowledgements
Start.COOP was developed collaboratively by the ILO Decent Work Team Bangkok and the Coopera-
tives Unit of the Enterprises Department at the ILO. The text was drafted by Marian E. Boquiren.

Start.Coop

ILO Enterprises Department

Decent Work Team - Bangkok

II
CONTENT
Start.COOP Modules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV
MESSAGE TO THE GROUP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V
Follow the Signs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI
Getting Started.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VII
Learning Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VIII
SESSION 1: WHAT IS A BUSINESS PLAN?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Activity 1A: Structure of a basic business plan. . . . . . . . . . . . . . . . . . . . . . . . . . 1

SESSION 2: BUSINESS PROFILE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Activity 2A: Writing your business profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

SESSION 3: MARKETING PLAN .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Activity 3A: Product and/or service description. . . . . . . . . . . . . . . . . . . . . . . . . . 5

Activity 3B: Market description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Activity 3C: Marketing strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

SESSION 4: OPERATIONS PLAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Activity 4A: Physical resources: facilities and equipment. . . . . . . . . . . . . . . . . . 13

Activity 4B: Work process and system. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

SESSION 5: MANAGEMENT PLAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Activity 5A: Preparing your organization chart. . . . . . . . . . . . . . . . . . . . . . . . . . 20

Activity 5B: Job description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

SESSION 6: FINANCIAL PLAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Activity 6A: Preparing your income statement. . . . . . . . . . . . . . . . . . . . . . . . . . 24

Activity 6B: Preparing your cash flow projection. . . . . . . . . . . . . . . . . . . . . . . . 27

Activity 6C: Preparing your balance sheet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

SESSION 7: EXECUTIVE SUMMARY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Activity 7A: Writing the executive summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Answers: Activity 1A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

III
 Start.COOP
Modules

Identifying
Core Members and
Module Business Idea
1

Researching
the Feasibility of
Module the Business Idea
2

Preparing
the Business Plan
Module
3

Organizational
Set-up
Module
4

IV
MESSAGE
TO THE GROUP
Starting a cooperative is like setting up any business, but what makes a cooperative different from
other business models is that it is shaped through collective effort and group decision-making as
well as a set of cooperative principles that help to guide the business. The Start.COOP modules will
walk you through the process of starting and launching a cooperative in a participatory and efficient
manner.

Throughout the Start.COOP training, you will be playing the role of potential owner-members or the
core group who will be leading the set-up of the cooperative. You will carry out the exercises based
on the business idea you defined in Module 1. In many cases, the outputs in the various exercises
form the basis or inputs for the activities in the next modules. As you go through the exercises or
activities, try to think and act as the potential owner-members. It is highly recommended that all
individuals who may be involved in the actual set-up of your cooperative undergo the Start.COOP
training.

In Module 2 you undertook a feasibility study, it is time to proceed to the preparation of the business
plan. The feasibility studies answer the question “will this work”. A business plan answers the ques-
tion “how will this work”. This module focuses on the preparation of a basic business plan aimed at
providing guidance on how to run the business during the early stages of its operation.

At some point in the process of developing your business plan, you may need some external assis-
tance. What is important, however, is that the ideas and content of the business plan should come
from the core group or potential members of the cooperative. It is, therefore, important that you
learn the process of preparing the business plan. At the end of this module, it is expected that you
will have the draft outline of your business plan.

The style of this training is different from traditional approaches. You will work together as a team
to follow the simple step-by-step instructions for discussions and activities in the training guide. A
facilitator will be around to assist with any questions on the training content and exercises. Because
there is no group leader, all group members should take a turn reading the information and instruc-
tions out loud to the group, and all group members share responsibility for monitoring time. In this
new style of training, you will learn from each other by sharing ideas and opinions, skills, knowledge
and experience. For this to work, all group members must participate in discussions.

Before and after the training, you will be asked to complete a survey to help understand the impact
of the training. This information will be kept confidential and will be used to improve the training
materials and organization of future programmes. It will also be helpful for identifying other training
on cooperatives that can be subsequently introduced to participants. Some trainees may also be
contacted by the training organizers in the future after 3, 6 or 12 months for another survey to learn
about the implementation of their action plans.

V
 Follow the Signs
The instructions in the training guide are easy to follow and the suggested timeframe for each step is
provided. Look out for these signs:

SIGNS AND THEIR MEANING

This sign indicates the suggested time for the activity

This sign indicates background information to be read to the group

This sign indicates group discussion

This sign indicates that the activity is beginning and that step-by-step instructions
need to be read out loud to the group and folloowed sequentially

VI
Getting Started
Before you begin the training, follow the simple steps below to get organized:

• Fill out the pre-training survey. Ask the organizers if you do not have a copy or have not already
filled it in.
• Organize into small groups of 5 to 7 people. The organizers will guide you in how best to do this.
• Identify one group member to volunteer to start the training as “Group Reader”. The role of the
“Group Reader” is to read the information and activity instructions out loud to the group. Any
group member with basic literacy can be the “Group Reader” and you should aim to share this
role among group members throughout the training.

All group members are responsible for monitoring time, but one group member should be nominated
for each session to remind the group when the suggested time for an activity/step has been reached.
You do not strictly need to follow the suggested timing, but you will need to manage your time for the
total training. If one activity lasts longer than the suggested timing, try to save time in other activities
to keep the balance.

All group members will receive the same training guide. Individual work as well as group work can be
completed in these guides.

VII
 Learning Process
Session Time

SESSION 1:
20 minutes
WHAT IS A BUSINESS PLAN?

SESSION 2:
30 minutes
BUSINESS PROFILE

SESSION 3:
110 minutes
MARKETING PLAN

SESSION 4:
75 minutes
OPERATIONS PLAN

SESSION 5:
40 minutes
MANAGEMENT PLAN

SESSION 6:
110 minutes
FINANCIAL PLAN

SESSION 7:
40 minutes
EXECUTIVE SUMMARY

VIII
 YOUR
BUSINESS
PLAN
SESSION 1: SESSION 1: BUSINESS PLAN
1A. Structure of a basic business plan
WHAT IS A BUSINESS PLAN? SESSION 2: BUSINESS PROFILE
2A. Writing your business profile
SESSION 3: MARKETING PLAN

Session Overview 3A. Product and/or service description

3B: Market description
3C: Marketing strategy
SESSION 4: OPERATIONS PLAN
5 minutes 4A: Physical resources:
facilities and equipment
4B. Work process and system
SESSION 5: MANAGEMENT PLAN
The business plan is a roadmap that details where the cooperative is going and 5A: Preparing the organization chart
how to get there. It explains what the business is and how it will be operated. 5B: Job description
Having a good business plan will help cooperatives minimize risks of failure. SESSION 6: FINANCIAL PLAN

It can also be used by cooperatives in applying for support from development 6A: Preparing the income statement
6B. Preparing your cash flow projection
programmes.
6C: Preparing your balance sheet
SESSION 7: EXECUTIVE SUMMARY
A business plan should be reviewed and updated regularly to reflect changes in 7A: Writing the executive summary
the business environment and status of the cooperative. In this session, you will
familiarize yourselves with the structure of the business plan.

Activity 1A:
Structure of a basic business plan
10 minutes

The following are the different sections of the business plan:

• Executive Summary
• Business Profile
• Marketing Plan
• Operations Plan
• Management Plan
• Financial Plan

Although the executive summary is the first section of the business plan, it is written after all of the
other sections have been prepared. The reason for this is that it will draw from and synthesize all the
important information from the succeeding sections.

Most likely, you are already familiar with the titles of the other sections as these were the areas that
you investigated when you conducted your feasibility study. As a review, let’s look at the pictures
below and identify which section of the business plan it represents (excluding the Executive Sum-
mary). For example, Picture 1 shows information that should be included under the Business Profile
section.

Share and discuss your answers with your group.

1
 PICTURE 1 PICTURE 2
Our cooperative is composed of workers in the The cooperative expects
aquaculture. We provide a wide range of services – from to earn US$ 6,000 per
pond preparation to harvest and post-harvest. Through month with a profit margin
the coop, we hope to have access to social security of 15%.
services and get better wages.

Answer: Business Profile Answer:

PICTURE 3 PICTURE 4
Fish cage owners will book services via
We will send out flyers to all fish cage owners to the coop. The manager will assemble a
inform them about our services. We will charge pool of harvesters to handle the assign-
US$ 100 per harvest. We target to serve 60% of ment. Harvesting rafts including safety
the fish cages in our region. gear will be provided by the coop.

Answer: Answer:

PICTURE 5
In Year 1, we will hire a manager
who will also be responsible for job
placements. All members will take
turns in cleaning tools and facilities.

Answer: Answers can be found on page 36.

2
 YOUR
BUSINESS
PLAN
SESSION 2: SESSION 1: BUSINESS PLAN
1A. Structure of a basic business plan
BUSINESS PROFILE SESSION 2: BUSINESS PROFILE
2A. Writing your business profile
SESSION 3: MARKETING PLAN

Session Overview 3A. Product and/or service description

3B: Market description
3C: Marketing strategy
SESSION 4: OPERATIONS PLAN
5 minutes 4A: Physical resources:
facilities and equipment
4B. Work process and system
SESSION 5: MANAGEMENT PLAN
The business profile typically comes after the executive summary. This section 5A: Preparing the organization chart
outlines vital details about your cooperative such as where it is located, whom 5B: Job description
to contact, how large the cooperative is, what it does and what you hope to SESSION 6: FINANCIAL PLAN

accomplish. 6A: Preparing the income statement

6B. Preparing your cash flow projection
6C: Preparing your balance sheet
SESSION 7: EXECUTIVE SUMMARY
7A: Writing the executive summary

Activity 2A:
Writing your business profile
20 minutes

As a group, complete the business profile of your cooperative by answering the questions listed
below. The second column provides an example to guide you. Answer the question as it is read. Write
your answer in column 3. Many of the answers to the questions can be found in your feasibility study
outputs.

3
 Column 1 Column 2 Column 3
Question Example Your Answer

Background Information

Name of Cooperative XYZ Cassava Farmers Cooperative

Address Banga, South Cotabato

SOCCKSARGEN, Philippines

Contact Details Manuel de la Cruz, Manager

Cellphone No. +63 9175324017

Number and type of members 200 farmers in South Cotabato

Purpose/Objective of Cooperative

What are the objectives of To reduce postharvest losses and

forming the cooperative? engage in value addition activities
through production of cassava chips
Tip
using improved technologies and under
Review outputs in Start.COOP
hygienic and safe working conditions.
Module 1
What would the group like to Increase in income
achieve by coming together?
Access to bigger and more lucrative
markets
Stable jobs for household members
including access to social security
Access to water system

Products and/or Services

Type of Cooperative √ Production √ Production

Tick as applicable √ Marketing Marketing
Service Service
Others (specify) Others (specify)
What product/service is the Production of cassava chips
business going to provide?
Why will customers buy your We can deliver regular supplies of high
products or use your services? quality cassava chips at a competitive
price. Our chips will be produced under
safe and hygienic conditions.
The cooperative will also advocate for
decent and safe working conditions not
only in its processing plant but also
among its suppliers.

Markets
Who will be your customers? The cassava chips will be sold to feed
companies located within the region.
To minimize risk, we will forge a supply
agreement with two to three feed
companies.

4
 YOUR
BUSINESS
PLAN
SESSION 3: SESSION 1: BUSINESS PLAN
1A. Structure of a basic business plan
MARKETING PLAN SESSION 2: BUSINESS PROFILE
2A. Writing your business profile
SESSION 3: MARKETING PLAN

Session Overview 3A. Product and/or service description

3B: Market description
3C: Marketing strategy
SESSION 4: OPERATIONS PLAN
5 minutes 4A: Physical resources:
facilities and equipment
4B. Work process and system
SESSION 5: MANAGEMENT PLAN
This section of the plan provides the description of the products and/or services 5A: Preparing the organization chart
with emphasis on the value that you would be providing to your customers. It 5B: Job description
also presents a summary of the results of your market analysis (conducted as SESSION 6: FINANCIAL PLAN

part of your feasibility study) with a focus on the market opportunities for your 6A: Preparing the income statement
6B. Preparing your cash flow projection
products and/or services. You will then describe your strategies on how you will
6C: Preparing your balance sheet
reach your target customers and differentiate your business from competitors. SESSION 7: EXECUTIVE SUMMARY
7A: Writing the executive summary

Activity 3A:
Product and/or service description
30 minutes

The product and service description describes the features of your product or service, the unique
selling points offered by your product or service, and how your product or service satisfies client
needs and expectations.

This is a group activity. An example is provided in each step to guide you. Perform each step as it is
read.

5
 Steps
STEP 1 20 minutes

OUR PRODUCTS PRODUCTS SPECIFICATION PRODUCT DESCRIPTION

Unpeeled Cassava Chips We only use 10-12 month old cassava tubers. Chips are ¼ inch thick for
The tubers are processed not more than 24 hours quick drying.
after delivery to avoid contamination.

Peeled Cassava Chips Moisture content of 12% to 14% Packed in clean 50 kg sack

Example: XYZ Cassava Farmers Cooperative

You will produce high quality peeled and unpeeled cassava chips. The peeled cassava chips will only
be offered during the 2nd year to give the cooperative time to raise money for a mechanical peeler.
Key features of your cassava chips are described below.

Parameter Description
Raw Material: Fresh Cassava Tubers
Maturity 10 to 12 month production
Freshness Newly harvested; not more than 1 year old
Appearance No evidence of pest infestation
No rotten or damaged parts
Cassava Chips
Moisture Content 12% to 14% - tested via a tester
Appearance and colour Cream to light brown
No evidence of pest infestation
No rotten or damaged parts
No soil or mud
Chip size Not more than ¼ inch thick
Odour No fermented odour or bad smell
Texture Brittle and easily cracks when crushed
Packaging 50 kilogram sack; clean sack – not used for ingredients that
could affect food safety
Production Volume 1,800 MT per year
Product Uses Ingredient for all types of livestock and farmed fish feed

6
 Description of Your Product and/or Service
Use the guiding questions to help you describe your product and/or service. If you have several
products or services, describe only one during the activity. You will complete the description of your
other products or services when you meet again to finalize your business plan.

a) What is the product or service of your cooperative?

b) What are the key features of your product or service?

c) How much do you target to produce in a month or year?

d) What are the main uses of your product or service?

STEP 2 10 minutes

What makes our product better than what is already available in the market?
Example: Cassava Farmers Cooperative

Fresh and chemical free High quality chips at compet- Clean and safe chips: Safe work, happy and
tubers: Tubers are grown in itive prices: Semi-mechanized Our chips will be dried in productive workers: Coop
farms compliant with Good production under strict quality raised platforms. will ensure safety at every
Agricultural Practices and control system. step of our operations.
near the processing plant.

When you answer the question below, imagine that you are in a meeting with a prospective buyer and
would want to convince him/her to buy from your cooperative.

What makes your product or service better than what is already available in the market?

7
 Activity 3B:
Market description
30 minutes

The market description explains who your target customers are and why you chose this market. You
should also clearly state why your target customers need the product or service you are planning to
sell. An analysis of your competitors should also be presented.

To facilitate the writing of the market description, as a group answer the guide questions in Column 1.
Sample answers are provided in Column 2 for your reference. You can also refer to your outputs in
the Market Analysis session of Module 2.

Column 1 Column 2 Column 3

Guide Question Example: Cassava Farmers Coop Your Answer
Who are the possible Feed mills: about 1,730 nationwide
customers?
Bioethanol companies:
Indicate the different 2 companies; start-up phase
types of customers or
Brewery: only 1 company so far using cassava
users of your product or
chips
service
Flour companies: only small portion of
production devoted to cassava flour
Snack food processors: generally micro
companies
Export market with China as the largest
importer
Among all the possible Feed mills
customers you have
identified, which type of
customers or segment
will your cooperative
focus on?

Why did you choose to The top 5 feed mills have facilities in
focus on this market the region which are accessible to the
segment? cooperative
There is a guaranteed market and floor price
via supply agreement
Companies also offer advance payment and
provide assistance to suppliers
Why do your target There is a lack of supply of cassava chips.
customers need your Feed mills currently operating at 60% of
product or service? production capacity
Quality of existing supply of chips is of
What specific need in
inconsistent quality --- high moisture content
your target market will
and not compliant with food safety standards
the product or service
address? We will also be able to cater to demand for
cassava chips produced from chemical free
tubers. Feed companies are expanding their
production of natural feed to cater to growing
demand from livestock raisers

8
 Column 1 Column 2 Column 3
Guide Question Example: Cassava Farmers Coop Your Answer
Who are your Direct competitors are the assemblers who
competitors? collect tubers from their own farms and from
farmers. They process the tubers into cassava
chips

How can you compete We grow, process, and sell the product. We
with your competitors? are, thus, our own suppliers. Although assem-
blers have their own farms, they depend on
farmers who are willing to sell to them. Most
of their suppliers only harvest once a year.
In our proposed production system, we will
promote modular plots and natural farming
among our members so that we will have a
year-round supply and chemical free tubers
Assemblers do not invest in technology and
upgrading. Their chips are generally Class B
and Class C. We will produce Class A chips

What is the estimated In the region, total demand is about 200,000

demand for your product MT per year. The supply gap is about 50,000
or service? MT annually

What percentage of the Projected annual production volume of

market do you hope to cooperative: 1,800 MT
penetrate?
This is about 1% of total demand. The
cooperative will fill up about 4% of current
supply gap

How can you increase Members have to increase farm productivity.

your market share over Current yield is only about 70% of optimum
time? yield
We need to improve both farm and processing
productivity so as to be competitive with
imported cassava chips
We also have to increase our production
capacity for chips

Is your market likely to The market for cassava chips especially

grow? How much? for feed mill is expected to grow due to an
increase in livestock population. The market
is expected to grow by 5% per year based on
interviews with feed mills within our region

9
 Activity 3C:
Marketing strategy
40 minutes

You have identified your markets and products or services. It is clear that the markets and products
or services you have chosen can help to address your common objectives. In this activity, you will
define how you are going to get your customers to buy your products and/or use your services.

This is a group activity. Everybody should share their ideas and listen to each other.

Steps
STEP 1 15 minutes

Promotion strategy:
How your target customers will know about your product or service

Visit to prospective buyers Text messages/social media Trade fair participation Advertisement

The development of a promotion strategy involves thinking about how you can inform your customers
about your products or services and influence them to buy from you. Read the question (Column 1)
and the example (Column 2), share ideas, and write your answer (Column 3).

Column 1 Column 2 Column 3

Guide Question Example: Cassava Farmers Coop Your Answer
How will you inform your We will meet with our potential customers
target customers about and provide them with samples and our pro-
your product or service file. We will invite them to visit the cassava
and cooperative? farms of our members and our processing
plant in order to gain their trust.

What will be the main Use of our cassava chips will help feed mills
message(s) that you will make better quality feeds.
communicate in your
We can help feed mills penetrate the natural
promotional activities?
feed market with our chemical free tubers.
With a membership base of 200 cassava
farmers adopting the modular farming, our
buyers are assured of a year-round supply of
chips.
10
STEP 2 10 minutes

Distribution strategy:
How you will get your product to your target customers
Direct Distribution

Indirect Distribution

COOPERATIVE INTERMEDIARY TARGET CUSTOMER

Relationship between cooperative and buyer

Deal… Our coop

We will pre- can supply 2500 MT
It is only US$ Okay. I will buy
pare the marke- of chips monthly. But we
0.08 per kilo 5 kilos
ting agreement want a guaranteed floor
price

On the spot transaction With contractual agreement between buyer and seller

In this step, describe how you will make your product or service available to your target customers
by answering the guide questions in Column 1. Read through the example in Column 2 to have some
ideas on how to answer the question. Write your answers in Column 3.

Column 1 Column 2 Column 3

Guide Question Example: Cassava Farmers Coop Your Answer
How is your product or The cooperative will sell directly to the three
service going to get to the feed mills in the region. The three feed mills
customer? are less than 30 miles from the proposed
location of our processing plant. We will rent
Describe how your
a truck to deliver the chips.
produce will be sold –
whether directly to your
target customers, via
intermediaries, etc.
What is the contractual The cooperative will sign a non-exclusive
relationship between marketing contract with the three feed mills.
you and your target The contracts provide a guaranteed floor price
customers? and an advance payment of 20% to 30% of
agreed volume for delivery. We will deliver the
chips every month.

11
 STEP 3 15 minutes

Hmm... I can give it to

Pricing strategy you for US$ 0.10 if you
buy 2 kilos

INTERNAL EXTERNAL Only US$ 0.12 per kilo

FACTORS FACTORS
Costs Supply and
Demand
Marketing Buy now … Introducto-
PRICING
Strategy Competition ry price of US$ 2. The
STRATEGY
Marketing Consumer price will surely increase
Objectives perception of next month
price and value
Competition Pricing
Government,
etc.
I sold it at US$ 1.50 per kilo
to cover all costs + mark-up of
25%. Supply is also limited.

Market Penetration
Pricing

Cost Plus Pricing

Pricing strategy involves determining how you will price your product or service. Work together to
answer the guide questions.

Column 1 Column 2 Column 3

Guide Question Example: Cassava Farmers Coop Your Answer
How will you set the We will negotiate with our buyers for a
price of your product or guaranteed floor price that will cover all costs
service? and a mark-up of at least 15%. If prevailing
market price at the time of delivery is higher
than floor price, the coop will receive the
higher price.
Feed mills set the price of cassava chips
based on quality and volume. Chips with
moisture content higher than 14% receive a
deduction in buying price. To get the optimum
value for our products, the cooperative will
work towards increasing production volume so
as to be eligible for incentives given by feed
mills that are able to deliver large quantities
of chips per month. We will also ensure that
we deliver only Class A chips.
How does the pricing of This is not applicable to us. Feed mills set the
your product or service price based on available supply of cassava
compare to the market and alternative materials such as corn. For
price of similar products our cooperative to remain viable though, we
or services? will invest in continuous productivity improve-
ment to keep our production costs low for
both cassava and chips.

12
 YOUR
BUSINESS
PLAN
SESSION 4: SESSION 1: BUSINESS PLAN
1A. Structure of a basic business plan
OPERATIONS PLAN SESSION 2: BUSINESS PROFILE
2A. Writing your business profile
SESSION 3: MARKETING PLAN

Session Overview 3A. Product and/or service description

3B: Market description
3C: Marketing strategy
SESSION 4: OPERATIONS PLAN
5 minutes 4A: Physical resources:
facilities and equipment
4B. Work process and system
SESSION 5: MANAGEMENT PLAN
The operations plan describes how you will make your product or carry out the 5A: Preparing the organization chart
service. It also provides details on the physical location, facilities, and equip- 5B: Job description
ment that would be needed to produce the product or deliver the service. Last SESSION 6: FINANCIAL PLAN

but not least, the operations plan presents how the business will ensure product 6A: Preparing the income statement
6B. Preparing your cash flow projection
or service quality and productivity and safety of the whole operations. Most of
6C: Preparing your balance sheet
the information that you will need in completing your operations plan can be SESSION 7: EXECUTIVE SUMMARY
found in your outputs in Module 2. 7A: Writing the executive summary

Activity 4A:
Physical resources: facilities and equipment
25 minutes

Physical resources include land, building and other structures, machinery, and equipment. These are
the tangible assets that the cooperative will use to produce the product or deliver the service.
Do the steps together. Listen to all the ideas of your group members.

STEP 1 10 minutes

Location: Where the business will be located

Basic considerations in choice of location

Electricity/Power Supply Water Supply

Communication Accessible Near buyers Allowed by ordinance

Facility and suppliers or law

13
 Read the guiding questions in Column 1 and the examples in Column 2, and write down your answer
in Column 3.

Column 1 Column 2 Column 3

Guide Question Example: Cassava Farmers Coop Your Answer
Where will the busi- It will be located in South Cotabato,
ness be located? which is the top producer of cassava
in the country.

What are the The proposed location is near the

advantages and cassava farms and the potential
disadvantages of buyers. It is also accessible by
the location? 4-wheel drive vehicles. The area is
connected to the power grid. A clean
water supply is also abundant. The
proposed location is not prone to
floods.
The area, though, does not have
landline phone or internet connec-
tion. However, it can be reached via
cell phone.

STEP 2 15 minutes

Physical resources:
Facilities and equipment needed to produce product or provide service
We need an open working Ok. I will ask the
area for the manual carpenters to give
chipping. The cyanide a quotation for
that is released during the both the shed and
cutting is harmful. storage area.

You will identify the equipment and facilities that the cooperative will need and how the group plans
to acquire these. By now, the group should have already validated whether the planned mode of
acquisition identified during the feasibility study is feasible. Remember, you can also make use of
existing assets and facilities of members to lower investment cost.

14
Example: Cassava Farmers Cooperative

Equipment/Facility Description How Coop will Acquire

Land 250 square meters Member will allow coop to use her land
Building 150 square meters; design and layout will Grant from local government
be compliant with Good Manufacturing
Practices
Open working area About 50 square meters; for manual To be constructed; materials will be
chipping donated by members
Slicing machine 2 units Purchase
Weighing machine 2 units Purchase
Moisture tester 1 unit Purchase
Raised platforms For drying of chips Construction; materials will be donated
by members
Stainless washing vats 2 units Purchase
Truck For delivery of chips Rental

Complete the table below for your own cooperative.

Equipment/Facility Description How Coop will Acquire

15
 Activity 4B:
Work process and system
40 minutes

This part of the Operations Plan will describe how the business will be operated from sourcing of
inputs to after sales services. The process will vary depending on your business. You will also need
to show how you will ensure product or service quality and the health and safety of workers.

Work together to complete each of the steps outlined below. Use the examples and illustrations as
your guide in answering the questions.

Steps
STEP 1 (15 minutes)

Procurement of inputs/raw materials needed to produce product or service

Promotional campaign to recruit suppliers Receiving, quality inspection, Weighing and

Training of suppliers and sorting payment

Column 1 Column 2 Column 3

Guide Question Example: Cassava Farmers Coop Your Answer
What are the key inputs/ Fresh cassava tubers – 375 MT per month
raw materials needed to
produce the product or
service? How many do
you need per month?

From whom will you Members and non-members

source these inputs?

How will you ensure Members will be required to allocate at least

that you will have an 60% of their harvest for the cooperative
adequate supply of raw
Cooperative will regularly conduct promotional
materials?
campaigns to attract cassava farmers to supply
to the plant and eventually become members
We will promote modular farming. We will
also conduct training to help farmers improve
productivity and comply with quality standards
16
 Column 1 Column 2 Column 3
Guide Question Example: Cassava Farmers Coop Your Answer
What are the key Zero to very minimal use of chemical inputs;
requirements to become cassava with zero chemical inputs should be
a supplier? appropriately labelled
No child labour in their farms
Basic work safety is observed
What are the terms of Members enjoy guaranteed price of US$ 0.05
payment? per kilo. If market price is higher than US$
0.05 at the time of delivery, members will get
the higher price
Non-members will be paid based on prevailing
market price
Price discount of 10% will be applied to
immature tubers
Cash on delivery

STEP 2 (25 minutes)

Production /work process

Cleaning and washing of tubers Moisture content testing Packing and storage of chips

Manual chipping Drying of chips Delivery of chips

Measures to ensure quality and safety

Pallets arranged properly

Pallets cleaned
Workers wear
regularly
protective clothing

Use of clean water

Illustration by: Esteban Idrovo

17
 In Column 1, list the key activities involved in making the product or delivering the service. In
Column 2, identify the key measures to ensure product quality and workers’ safety. In Column 3,
identify the person or people responsible for performing the activity.

Example: Cassava Farmers Cooperative

Activity Measures to ensure quality and safety Responsible

Cleaning and Clean water will be used for washing Washers
washing of tubers
Chipping Thickness of chips will be about ¼ inch to ensure high granules Chippers
recovery
Chippers will only use sharp knives to avoid crushing the cassava,
reduce physical strain (workers), and minimize risk of injury
(workers)
Prior to using a mechanical chipper, operator will ensure that: (i)
blades and funnels are clean; (ii) blades are properly calibrated
to desired thickness; and (iii) motor is in good running condition.
Checking and service maintenance of mechanical chipper will be
done monthly. At all times, operator will wear personal protective
equipment
Chipping will be done in a clean and dry place that is protected
from animals and pests
Area for manual chipping will be well ventilated, shaded, and open
to minimize risk of workers inhaling cyanide
Weighing of chips Clean pails will be used to weigh chips. Content of pail will not be Chipper team leader/
more than 15 kilograms to reduce physical strain on haulers chippers
Drying of chips Chips will be dried in clean platforms without soil and dust Workers/Driers
particles. Chips will be spread evenly at approximately 12 kg. per
square meter
Chips will be turned every two hours to have uniform drying
Workers will be provided with appropriate sun protection
Testing for moisture The thickest chip cut from among the dried chips will be tested for Receiving staff
content moisture content using a tester
Packing of chips Only chips that pass the 12% - 14% moisture content will be Workers/Driers
packed
Chips will be packed in clean sacks without holes and rips
Sacks will be sealed via sewing to avoid entry of pests
Weighing of chips Chips will be weighed using calibrated weighing scales. Each sack Receiving staff
will contain 50 kg. of chips
Weight and number of sacks including date of processing will be
recorded in inventory logbook. Date processed will be indicated on
the sacks
Storage of chips Chips will be stored in clean, well-lit storage areas. The sacks will Receiving staff
be placed on top of pallets, off the floor and away from the walls
Proper stacking will be observed to facilitate easy monitoring,
minimize risk of falling off, and proper ventilation
“First In, First Out” will be observed in the release of cassava
chips
Hauling and The vehicle for delivery will be inspected for cleanliness. Vehicles Warehouse staff
delivery of chips used for the transport of animal manure, fertilizers and harmful
pesticides will not be used for the delivery of cassava chips
Trolleys will be used for the (un)loading of the sacks to protect both
product and workers
18
Complete a similar table for your cooperative. To facilitate the identification of measures to ensure
quality and safety, let’s first identify the quality and safety risks in each of the major activities.

Activity Quality and safety risks Measures to ensure quality and safety Responsible

19
 YOUR
BUSINESS
PLAN
SESSION 5: SESSION 1: BUSINESS PLAN
1A. Structure of a basic business plan
MANAGEMENT PLAN SESSION 2: BUSINESS PROFILE
2A. Writing your business profile
SESSION 3: MARKETING PLAN

Session Overview 3A. Product and/or service description

3B: Market description
3C: Marketing strategy
SESSION 4: OPERATIONS PLAN
5 minutes 4A: Physical resources:
facilities and equipment
4B. Work process and system
SESSION 5: MANAGEMENT PLAN
The Management Plan section describes how the cooperative business will be 5A: Preparing the organization chart
structured. It also identifies the human resources and skills that the business 5B: Job description
will need to meet the demands of customers. SESSION 6: FINANCIAL PLAN
6A: Preparing the income statement
6B. Preparing your cash flow projection
6C: Preparing your balance sheet
SESSION 7: EXECUTIVE SUMMARY

Activity 5A: 7A: Writing the executive summary

Preparing your organization chart

15 minutes

The organization chart is a diagram showing the structure of the business. It is drawn using boxes for
the job titles or functions and vertical lines to demonstrate the reporting relationships of supervisors
and their reporting staff. An example of an organization chart is shown below.

Example:
Organization chart: cassava farmers cooperative
General Assembly Composed of members of coop

Elected by members;
Board of Directors oversee the operations
of the cooperative
Manager

Team Leader: Chipping/ Warehouse

Bookkeeper Cashier
Equipment Operator Supervisor

Workers Receiving Staff

You will learn about the General Assembly and Board of Directors in Module 4. For now, let’s focus
on the people who are directly involved in the daily operations of the business.

Now draw together the organization chart of your own cooperative. A review of your production plan
can help you identify the people that you need. As soon as you have identified the people that you
need, then decide on who should report to whom.

20
Your organization chart

21
 Activity 5B:
Job description
15 minutes

After completing the organization chart, describe the specific duties of each of the positions and the
required skills, experience, and other qualifications. For this activity, only describe positions starting
from the manager to the workers.

Example: Cassava Farmers Cooperative

Position Job Description Qualifications

Manager Manages operations in the processing facility At least 3 years of experience in managing
Oversees financial operations processing facility
Reports to Board of Directors Familiar with cassava chips production (or
similar)
Good management and marketing skills

Equipment Oper- Operation of machines Knows how to operate the chipping machine
ator/ Chipping Cleaning and maintenance of the machines With background in equipment mainte-
– Team Leader
Quality control nance and basic troubleshooting
Monitoring of output of workers With 2 years of experience in production of
banana chips
Good leadership skills

Warehouse Super- In-charge of warehouse and storage operations At least 2 years of experience in warehouse
visor including ensuring cleanliness operations and cassava chip production
Responsible for procurement of supplies Knows basic business math
Records and monitors raw material stock and
finished products
Quality control

Receiving staff Grading and sorting of fresh cassava Familiar with cassava chip production
Records all incoming supplies and deliveries to Knows basic business math
buyers
Maintains inventory record

Bookkeeper/ Recording of financial transactions Background in bookkeeping

Finance Clerk
Maintenance of relationships with suppliers
Checking and processing of payment to
suppliers

Cashier Collection of payment from customers Has previous similar work experience
Release of payment to suppliers
Safekeeping of cash/money of cooperative

Chippers Manual chipping of cassava Has similar work experience

Hauling and weighing of cassava chips
Washer Cleaning and washing of cassava chips Has similar work experience

Driers Drying of cassava chips Has similar work experience

Weighing and hauling of cassava chips
22 Packing and stocking of cassava chips
Loading of cassava chips
Using the example as your guide, complete the table below for your cooperative.

Position Job Description Qualifications

23
 YOUR
BUSINESS
PLAN
SESSION 6: SESSION 1: BUSINESS PLAN
1A. Structure of a basic business plan
FINANCIAL PLAN SESSION 2: BUSINESS PROFILE
2A. Writing your business profile
SESSION 3: MARKETING PLAN

Session Overview 3A. Product and/or service description

3B: Market description
3C: Marketing strategy
SESSION 4: OPERATIONS PLAN
5 minutes 4A: Physical resources:
facilities and equipment
4B. Work process and system
SESSION 5: MANAGEMENT PLAN
The Financial Plan section of the business plan provides details on how poten- 5A: Preparing the organization chart
tially profitable the business will be. You will also need to provide projections 5B: Job description
that would show that the business will survive on the start-up capital until SESSION 6: FINANCIAL PLAN

it makes a profit. In short, you have to demonstrate in this section that the 6A: Preparing the income statement
6B. Preparing your cash flow projection
proposed business is a good investment.
6C: Preparing your balance sheet
SESSION 7: EXECUTIVE SUMMARY
You also need to present here the money that is needed to start the business 7A: Writing the executive summary
and how you will raise the required funding. Since you have already studied this
in Module 2, you can skip this today. It is recommended though that you review
your start-up costs before finalizing your business plan.

Activity 6A:
Preparing your income statement
30 minutes

An income statement for a new business shows how much it will earn or lose during a given period
of time. It shows the estimated amount of sales, cost of goods or services sold, expenses incurred in
the running or operation of a business and the profits earned for a given period.

To prepare an income statement, you need to know how to compute profit and loss. You have already
learned this in Activity 4B in Module 2. For this activity, you will need to review your previous
outputs and write them in an income statement template.

24
 Steps:
STEP 1 Read example. (10 minutes)

Income Statement of Cassava Farmers Cooperative

For the Period January to December 2018

Particular Unit No. of Units Unit Price Amount (US$)

TOTAL INCOME 360,000
Income: money paid for your services or
products
Sales from cassava chips Metric ton 1,800 200 360,000
TOTAL EXPENSES 281,100
Expenses: money spent or cost incurred to
generate income
Materials 226,200
Fresh cassava Metric ton 4,500 50 225,000
Sacks Pieces 6,000 0.2 1,200
Salaries/Wages 50,400
Manual Chipper Metric ton 1,500 4 6,000
Equipment Operator Person month 12 375 4,500
Washer Person month 12 200 2,400
Driers/Laborers (5 people) Person month 60 200 12,000
Warehouse Supervisor Person month 12 375 4,500
Receiving Clerk Person month 12 200 2,400
Bookkeeper Person month 12 200 2,400
Cashier Person month 12 350 4,200
Manager Person month 12 500 6,000
Social security benefits Person month 12 500 6,000
Utilities and Other Expenses 4,500
Electricity Month 12 50 600
Water Month 12 25 300
Transportation Trip 12 200 2,400
Other expenses Month 12 100 1,200
GROSS INCOME 78,900
Profit: Total Income – Total Expenses
Less: Taxes (depends on country) 6,312
PROFIT/NET INCOME 72,588
Gross Income – Taxes

STEP 2 Take out your output from Activity 4B in Module 2.

STEP 3 Fill out the Income Statement template based on data from your output in Activity 4B in
Module 2. As you fill it out, review and decide whether there are changes you would want to
make. You can use a calculator to complete this step. (20 minutes)

25
 Income Statement template

Income Statement of (Name of your Proposed Cooperative):

For the Period (One year):

Particular Unit No. of Units Unit Price Amount (US$)

TOTAL INCOME
Income: money paid for your services or
products

TOTAL EXPENSES
Expenses: money spent or cost incurred to
generate income

Materials

Salaries/Wages

Utilities and Other Expenses

GROSS INCOME
Profit: Total Income – Total Expenses
Less: Taxes
(If you do not know tax rates, please leave
bank and include in your action plan)
PROFIT/NET INCOME
Gross Income – Taxes
26
 Use this space for any calculations that you may need to make.

Activity 6B:
Preparing your cash flow projection
40 minutes

The cash flow projection shows the amount of money that you expect to come into your business
and money that will be going out of your business. The projection is useful to determine the viability
of the cooperative, particularly its ability to pay for the expenses needed to produce the product or
service and the overall operations of the business. The cash flow statement monitors the flow of cash
over a period of time (a year, a quarter, a month) and shows you how much cash you have on hand
during a given period. It also shows you whether your cash position has improved and by how much
during a given period (e.g. start of business and after 12 months of operation).

Cash flow
CASH IN CASH OUT
How does money come in to your business? How does money goes out of your business?
By producing and By giving a service By purchasing By paying wages
selling goods raw materials and salaries

By getting a loan By getting a grant By paying for transpor- By renting a stall

tation and other utilities

The steps can be found on the next page. This is a group activity. Perform the steps as they are
read.
27
28
STEP 1
Cassava Farmers Cooperative
Cash Flow Projection
For the Period January to December 2018
Steps

Particulars Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

BEGINNING CASH
1,675 8,350 14,725 21,400 28,075 34,450 41,125 47,800 54,175 60,850 67,525
Copy the ending cash of previous month

Contribution from members 20,000

Cash In
Grants 15,000
List sources
Sales: Cassava Chips
Study the example. (10 minutes)

of cash
(refer to income in Income 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000
Statement)
TOTAL CASH IN
35,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000
Add entries in Cash In

Materials 18,850 18,850 18,850 18,850 18,850 18,850 18,850 18,850 18,850 18,850 18,850 18,850

Cash Out Salaries/Wages 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200

List projected Utilities 275 275 275 275 275 275 275 275 275 275 275 275
expenses
(refer to
expenses Repair/Maintenance 300 300 300
in Income
Statement) Equipment /tools 6,000

Construction of facilities 4,000

TOTAL CASH OUT

33,325 23,325 23,625 23,325 23,325 23,625 23,325 23,325 23,625 23,325 23,325 23,625
Add entries in Cash Out
NET CASH FLOW
1,675 6,675 6,375 6,675 6,675 6,375 6,675 6,675 6,375 6,675 6,675 6,375
Cash In - Cash Out
ENDING CASH
1,675 8,350 14,725 21,400 28,075 34,450 41,125 47,800 54,175 60,850 67,525 73,900
Beginning Cash + Net Cash Flow
Name od Cooperative:
Cash Flow Projection
Period:

Particulars Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
(30 minutes)

BEGINNING CASH
Copy the ending cash of previous month

Cash In

List sources
of cash

TOTAL CASH IN
Add entries in Cash In

Cash Out

List projected
expenses
(refer to
expenses
in Income
Statement)

TOTAL CASH OUT

Add entries in Cash Out
STEP 2 Complete the Cash Sales Projection table for your own cooperative. Work as a group.

NET CASH FLOW

Cash In - Cash Out
ENDING CASH
You may request assistance from the facilitator. You can use a calculator to complete this step.

Beginning Cash + Net Cash Flow

29
 Activity 6C:
Preparing your balance sheet
30 minutes

While the income sheet shows what the cooperative is earning, the balance sheet shows the total
worth of the cooperative. A balance sheet adds up everything the cooperative owns, subtracts
everything the cooperative owes, and shows the difference as the net worth of the cooperative. The
balance sheet reflects the financial position of the business at a given period (e.g. end of the year).

Balance sheet
ASSETS LIABILITIES EQUITY
Something of value that the Debts or amounts that the business owes to Members/Owners’ Share of
business owns people or other business Business

Beginning Capital:
Cash on hand Accounts receivable: payments Accounts payable: money Contribution from members
Money in the bank you have yet to receive owed by business Grants

Stocks and raw Building, vehicle, Balance of bank loan Net Profit
materials on hand equipment

30
 Steps

STEP 1 Read and study the example. (10 minutes)

Cassava Farmers Cooperative

Balance Sheet as of 31 December 2018

ASSETS LIABILITIES + OWNERS’ EQUITY

List all the things that the business will own LIABILITIES
and the corresponding value by 31 Dec 2018 List all the estimated debts and value by 31 Dec 2018
Cash on hand US$ 73,900 Accounts Payable US$ 0
Equipment and facilities US$ 10,000 Loans US$ 0
Payment for Dec delivery US$ 30,000
Total Liabilities
US$ 0
Add all entries
OWNERS’ EQUITY
How much capital will the business
have by 31 Dec 2018?
Beginning Capital
Contribution from members, grants, US$ 35,000
etc. – refer to Cash Flow
Net Profit
US$ 78,900
Refer to Income Statement
Ending Capital
US$ 113,900
Add all entries under Owner’s Equity
TOTAL ASSET TOTAL LIABILITIES +
US$ 113,900 US$ 113,900
Add all entries under Assets OWNERS’ EQUITY

Figures should be the same

31
 STEP 2 Prepare the balance sheet for your own cooperative. You can use a calculator to complete this
step. (20 minutes)

Name of Cooperative:
Balance Sheet as of      (indicate date)

ASSETS LIABILITIES + OWNERS’ EQUITY

List all the things that the business will own LIABILITIES
and the corresponding value by date indicated List all the estimated debts and value by date
above indicated above
Expenses incurred by coop that have
Cash on hand
not yet been paid
Fixed Asset Loans
Payment for goods or
services sold or delivered that
coop has yet to collect
Total Liabilities
Add all entries
OWNERS’ EQUITY
How much capital will the business
have by date indicated above?
Beginning Capital
Contribution from members, grants,
etc. – refer to Cash Flow
Net Profit
Refer to Income Statement
Ending Capital
Add all entries under Owner’s Equity
TOTAL ASSET TOTAL LIABILITIES +
Add all entries under Assets OWNERS’ EQUITY

Check that figures are the same

32
 YOUR
BUSINESS
PLAN
SESSION 7: SESSION 1: BUSINESS PLAN
1A. Structure of a basic business plan
EXECUTIVE SUMMARY SESSION 2: BUSINESS PROFILE
2A. Writing your business profile
SESSION 3: MARKETING PLAN

Session Overview 3A. Product and/or service description

3B: Market description
3C: Marketing strategy
SESSION 4: OPERATIONS PLAN
5 minutes 4A: Physical resources:
facilities and equipment
4B. Work process and system
SESSION 5: MANAGEMENT PLAN
This is a summary of each section of the business plan. As indicated in Session 5A: Preparing the organization chart
1, this is the first section of the business plan, but you can only complete this 5B: Job description
after all the sections have been completed. It should provide a short, concise SESSION 6: FINANCIAL PLAN

and optimistic overview of the cooperative business that captures the readers’ 6A: Preparing the income statement
6B. Preparing your cash flow projection
attention and gives them an interest in learning more about it.
6C: Preparing your balance sheet
SESSION 7: EXECUTIVE SUMMARY
7A: Writing the executive summary

Activity 7A:
Writing the executive summary
30 minutes

The easiest way to write the executive summary is to review the business plan and make one or two
sentences to summarize each section.

33
 Steps
STEP 1 Read and review the example. (10 minutes)

Sample Executive Summary

Name of Cooperative
Cassava Farmers Cooperative
Location
Our cooperative is located in Banga – South Cotabato, the largest cassava producing area in the country.
Members
About 200 cassava farmers have indicated interest in joining the cooperative. This represents about 40% of the
total number of cassava farmers in the province. We expect that membership will grow by 5% each year.
Product/service and uses
The cooperative will process the fresh cassava tubers from its members into high quality peeled and unpeeled
cassava chips for feeds. The peeled cassava chips will only be offered during the 2nd year to give time to the
cooperative to raise money for a mechanical peeler.
Production capacity
For the first year, our target production volume is 1,800 MT of cassava chips. We plan to increase production
volume by 5% per year.
Production Process
We will promote modular plots and natural farming among our members so that we will have a year-round supply
and chemical free tubers. Processing will be semi-mechanized. Our plant will be compliant with Good Manufac-
turing Practices. Safety of workers will be a top priority.
Customers
The cooperative will sign a non-exclusive marketing contract with the three feed mills. In the region, total demand
for cassava chips is about 200,000 MT per year. Supply gap is about 50,000 MT annually.
Human Resources/Management
The Board of Directors will oversee the operations of the processing plant. We will hire a Manager to manage and
supervise the daily operations. Our workers will be trained in Good Manufacturing Practices and workers’ safety
and health.
Financial Projection
We will need US$ 35,000 to start our business. Contribution from members is expected to reach US$ 20,000.
We hope to source the remaining US$ 15,000 from grants. Annual income is estimated at US$ 360,000 with
total expenses at US$ 281,100. Estimated annual profit is US$ 78,900.

34
STEP 2 Prepare an executive summary for your own business plan. Please refer to your outputs in
previous sections to fill in the guide below. Assign two to three members to work on each topic.
(20 minutes)

Sample Executive Summary

Name of Cooperative

Location

Members

Product/service and uses

Production capacity

Production Process

Customers

Human Resources/Management

Financial Projection

35
 Answers: Activity 1A
Picture 1: Business Profile
Picture 2: Financial Plan
Picture 3: Marketing Plan
Picture 4: Operations Plan
Picture 5: Management Plan

Learn how to set-up your cooperative.

Join the Start.COOP MODULE 4 training.

Use this space for your calculations and notes.

36