Business

Plan
 What is a Business Plan
Is a written document that describes all the steps
necessary for opening and operating a successful
business.
 Describe what your business will produce, how will
you produce it and who will buy your product or
service
 Explains who will run your business and who will
supply it with goods
 States how your business will win over customers
from competitors and what your business will do to
keep customers
 Provides detailed financial information that
shows how your business will succeed in
earning a profit
 Describes plans for future growth of your
business.

“ Writing a business plan is one

of the most difficult and
important things that an
entrepreneur will do.”
 Why Write a Business
Plan ?
 A Business Plan helps you evaluate the
feasibility of a new business idea in an
objective, critical, and unemotional way.
 It provides an operating plan to assist
you in running the business and
improves your probability of success.
 It communicates your idea to others,
serves as a “selling tool,” and provides
the basis for your financing proposal.
 PARTS OF THE BUSINESS PLAN
 INTRODUCTION
 MARKET ANALYSIS/MARKET RESEARCH
 OPERATION/ TECHNICAL MANAGEMENT
 ORGANIZATION AND MANAGEMENT
 FINANCIAL DATA
 INTRODUCTION
 a detailed description of the business and its
goals
 The ownership of the business and the legal
structure
 The skills and experience you bring to the
business
 The advantages you and your business have
over your competitors.
the advantages that you may include are:
• Performance
• Quality
• Reliability
• Distribution
• Price
• Promotion
• Public image or reputation
 MARKET ANALYSIS/MARKET RESEARCH
• Overall market
• Competitive Factors
• Other Market Influences
• Marketing Orientation
• Marketing Strategy
• Contingency Plans
 Operations/ Technical Management
• Research and Development
• Production Requirements
• Production Process
• Quality Assurance and Control
• Contingency Plan
 Organization and Management
• Key Personnel
• Other Personnel
• Miscellaneous Issues
• Contingency Plan
• Structure of Business
• Financing and Equity Considerations
• Description of Risk
 Financial Data
• Current Financial Position
• Payables/Receivables
• Cost Control
• Break-even Analysis
• Financial Ratios
• Financial Projections
 MARKETING

“The very purpose of writing the

marketing is plan is to define your
market, identify your customers and
competitors, outline a strategy for
attracting and keeping your customers,
and identify and anticipate change.”
 P’s of MARKETING

People Product

Placement Promotion

Price
DEMAND NEED

MARKET
WANTS
UTILIZE

fy
nti ve
de cti
i e
To osp
pr
 MARKET SEGMENTATION STRATEGIES

Geographic
Demographics
Psychographics
Behavior
 COMPETITORS
Direct competitors – enterprises selling the same
category of products to the enterprise target
market

Indirect competitors- enterprises selling an

alternative product to the enterprise products.

(Conducting a competitor analysis)

 Product Management
In selecting a product, the enterprise should
consider the features that will satisfy the customer
needs. Features include things such as color, size,
quality, hours, warranties, delivery and
installation.
You also have to consider branding, packaging and
labeling.
“You have to make your
product stand out from all
the others in the market”
Brand is the name, symbol or design used to
identify your product.
Package is the box, container, or wrapper in
which the product is placed.
Label is where information about the product is
given on the package.
 PROMOTION

Advertising is a form of promotion designed

to use TRIMP formula (TV, Radio, Internet, Mobile
and Print Media)

Sales Promotions these are promotions

that heavily relies on promotional gimmicks (buy
one take one, holiday sale, midnight sales, volume
sales, eat all you can )
Direct Selling designed to use person to person
selling techniques. This is recommended for technical
and expensive products that require an expert or
specialist to explain the product mechanics.

Public Relations is a promotion that

generate public awareness through
publicities, interviews, press conference, free
product endorsements, sponsorship and etc.
 PRICING

The PRICE is the actual amount a

customer pays for product or service.

Note: The price must be low enough to

encourage customer to buy from you,
not from your competitors but high
enough that revenues exceed
expenses.
Things to consider in setting PRICE OBJECTIVES

1. Return on Investment (ROI) is the

amount earned as a result of the
investment and usually expressed as a
percentage.
Ex. You invested P5000 in your smoothie
business, you want your business to have
15% return then you have to price your
product in a way that you will earn P750,
since P5000x.15=P750
2. Market Share is another consideration when setting
pricing objectives. Market share is a business percentage of
the total sales generated by all companies in the same
market. The total market for a product must be known in
order for a market share to be determined.
Example: If Jana’s community is spending P1,750,000 a year
on fast food and Jana’s store sells products amounting of
P192,500, their market share will be 11%
Amount of Sales/ Total Market = Market Share
P192,500/1,750,000= 11%
(your objective in pricing your product depends on target
market share)
 Determine a Price for a Product

• Demand –Based Pricing

– Pricing that is determined by how much
customers are willing to pay for the product.
This is determine through survey.
• Cost based pricing
- is determined by using the whole sale cost of
an item as the basis for the price charged
You can either mark up or mark down your
price.
 Price a Service or an Idea
When setting the price for a service, it is important
consider not only the cost of any items used in
providing the service but also the amount of time
and anything that is included with service.
1. Time based Pricing- the price to charge for the
services can be determined by the amount of time it takes
to complete the service. A service provided must decide
whether there will be a separate charge for the material or
materials will be included.
2. Bundling- services are bundled, or combined under
one charge, rather than making the customer pay for each
individual part of the service.
 Pricing Strategies
1. Introductory Price
2. Psychological Price
Prestige pricing
Odd/even Pricing
Price Linings
Promotional Pricing
Multiple Unit Pricing
3 Discount Price
 Cash discounts
Quantity discount
Trade Discounts
Seasonal Discount
From the output of the first activity (Same groupings)

You have to select one business that you are going to pursue.
1. Identify your :
a. target market
b. Product and its unique selling proposition
c. location of your enterprise/ business (simple explanation)
d. pricing strategy/ies
e. Advertising Campaign ( Jingle or TV advertisement)
f. Packaging (simple drawing)

2. Develop a name/brand to your product and simple tag line

(slogan that makes your business/product popular)

3. Presentation of Outputs