DEVELOPING A BUSINESS PLAN 4.

Building and Other Utilities

The building must be within the restrictions code
FACTORS TO CONSIDER OF A NEW ENTREPRENEUR of the municipality or city. The utilities like canteens and
other employees’ facilities must be put in place in
1) Know your product or service. compliance with the labor code.
You must believe on the product or service that
you will offer to your customer. 5. Plant Site Accessibility
The plant site must be accessible to public or
2) Analyze the market potentials. service transport for its employees and valued
The entrepreneur must know his needs and customers. It must be near highways or expressway to
wants and figure out how to satisfy these needs. Analyze provide ease in travel time.
customers’ profile as to their buying habits, their income,
and social status. STRENGTH, WEAKNESSES, OPPORTUNITIES AND
THREATS (SWOT)
3) Determine the marketing strategy.
Outlets must be developed that would answer SWOT Analysis – is an entrepreneurial tool in
customers’ demand. determining the profitability of the business operation.
The strength and weaknesses are internal factors to the
4) Know the competitors. entrepreneur while the opportunities and threats are
In launching a product with existing competitors external factors.
you must know their strengths and weaknesses.
1. Product Strength in the Market
5) Do not set on your Laurels. a) available technology in product processing
The landscape of business is continuously b) the source of rare materials must be abundant
changing. Your initial success in your business activities and at a lower price
needs more proactive analysis for expansion and growth c) skilled workers must be available
and overcome possible competitions. d) capital investment in machinery and operating
expenditures
FACTORS THAT ARE CONTRIBUTORY TO THE e) expertise and technical skills of the management
DEVELOPMENT OF CUSTOMER SATISFACTION term
2. Characteristics of Weak Products and Weak
1. Business Location for Small Entrepreneurs. Management (lower quality and high price, product
a) rent and space cost, supply and demand, and weak product
b) terms and lease agreement management)
c) type of goods or merchandise
d) income level of prospective customer 3. Sustainability Product Opportunities in the Market
e) prospective sales volume (product demand, presence of poor quality in the
f) municipal or city ordinances including taxes & fees market, and government policies and support)
g) location of the areas
4. Treats to product Profitability and Market
2. Location for Small Industrial Plant or Expansion (entrance of competition, supply of raw
Manufacturing Facilities Materials, and emergence of leftwing labor unions)
a) land area
b) facilities for expansion Business Plan – business formation that have been
c) power and utilities done by entrepreneurs that applied a more scientific
d) building and other utilities study of the business conditions.
e) plant site accessibility
BASIC PHASES OF BUSINESS PLAN
The following are important factors to consider:
1. Marketing and Distribution Study – shall deal with
1. Land Area product demand analysis. It should show the competitive
The contour of the land, its size, and shape must product advantage over existing product or service and
be suitable to the plant size. It must be free from floods designing the marketing program of the enterprise.
and other environmental hazards that will disturb the
operation. 2. Production and Technology Study – refer to the
need in making the product or service. This refers to the
2. Facilities for Expansion machineries, plant location, and other technical aspect in
The land area must have ample space for plant the making of the product.
expansion and provisions for parking facilities for
customers and employees. Anticipation of growth and 3. Financial Management – refers to the capital
expansion in plant facilities should be considered as investment and sources of funding the operation of the
additional site in the future may create a problem. business. It shall show financial projections over a period
of one year and five years program and shall determine
3. Power and Utilities the rate of return on investments.
Availability of power supply and the cost of
electricity involve in the operation are great factors in the
production of goods.