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Pathways To Entrepreneurship

The document discusses the importance of a business plan for starting or expanding a business. It explains that a business plan helps determine the viability of a business idea, guides the mobilization of necessary resources, and serves as a tool for obtaining financing. The major sections of a business plan are then outlined, including an executive summary, description of the business, marketing plan, financial plan, and assessment of risks. Finally, the document provides details on the key information needed in several of the major sections, such as market information, operational details, and financial projections.

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Diana Joy Aquino
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62 views11 pages

Pathways To Entrepreneurship

The document discusses the importance of a business plan for starting or expanding a business. It explains that a business plan helps determine the viability of a business idea, guides the mobilization of necessary resources, and serves as a tool for obtaining financing. The major sections of a business plan are then outlined, including an executive summary, description of the business, marketing plan, financial plan, and assessment of risks. Finally, the document provides details on the key information needed in several of the major sections, such as market information, operational details, and financial projections.

Uploaded by

Diana Joy Aquino
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Pathways to

Entrepreneurship
Chapter 4 Business
Plan
WHAT IS A BUSINESS PLAN
Business Plan – it is a document that describes the various
external and internal elements involved in starting a
business or in expanding an existing venture, amidst a
dynamic business environment.

WHY WRITE A BUSINESS PLAN?WHO READS IT?


Business plan are important because of the following reasons,
among others:

(a) It helps determine whether a proposed or existing business


(b) It guides the entrepreneur in mobilizing the resources needed by the
business
(c) It serves as a tool in helping get financing for the business.
INFORMATION NEEDED FOR THE MAJOR SECTIONS
OF BUSINESS PLAN
Market Information
A critical piece of information for any aspiring entrepreneur is the potential
market for his product or service.

Informations About Operations


This includes the location,service operations,equipment and/or furniture
required,space requirements,labor requirements,raw materials needed and potential
suppliers,utilities.

Financial Information
The financial section of the business plan will require the entrepreneur to
include a list of all sources of revenue and a list of possible expenditures for the
first year of operations.
MAJOR SECTIONS OF A BUSINESS PLAN

- Introductory Page
- Executive Summary
- Environmental and Industry Analysis
- Description of the Business
- Production Plan
- Operations Plan
- Marketing Plan
- Organizational Plan
- Financial Plan
- Assessment of Risk
- Timetable/Milestones
- Appendices
Introductory Page – this cover page provide a brief summary of
the business plan’s content.

Executive Summary – the executive summary, which is prepared after the


total plan has been written, must stimulate the interest of its reader,
especially if he or she is a potential investor.

Environmental and Industry Analysis – as explained earlier, it is


important to describe the general conditions within which the
entrepreneurial venture will operate . These environmental factors include the
following.

*Sociocultural Conditions – this includes, among others, a


description of shifts in the characteristics of the
population (demographics), including the rise of the Filipino
middle class and the growing elderly population;
lifestyle trends, including the increasing emphasis on health
and sustainable living; and shifting consumers preference,
including the demand for green products and services.

*Technological Conditions – this must include an assessment of the


major developments in science and technology that might
have either a beneficial or detrimental impact on business or on
the entire industry.

*Economic Condition – this must include a description of the growth of


both the national and local economies, as measured by the Gross
Domestic Product or GDP and the regional GDP
repectively; price movement of key business inputs, inflation
rates, interest rates, foreign exchange rates, employment
trades, and disposable income, among others.
*Politico-legal Conditions – this must take into account existing laws
and regulations, as well as future legislations that could directly affect
the business.

*Supply and Demand - for the entrepreneur, it is important to know


whether his proposed business venture belongs to an industry that is rapidly
growing(sunrise industry), steadily growing, plateauing, or rapidly
declining (sunset industry).

*Competition – some entrepreurs might be led to believe that a


good product or service is enough to sustain a profitable business.
Description of the Business – worth including in this section in the
venture’s mission statement, which could serve as a guide in decision
making.

Production Plan – a description of the layout of the physical plant,the


machinery and equipment needed to perform the
manufacturing operations.

Operations Plan – this section must describe the flow of goods and
services from production to the customer,describe
the procedures in completing a business transaction.

Marketing Plan – this section describe the target market for the new
product or service.
Organizational Plan – it is not enough for this section to provide
documentation of the venture’s form ownership–
that is propietorship, partnerhip, or corporation, nor is it
sufficient to have a nice organizational chart that indicates
the positions and jobs descriptions of the venture’s
management team.

Financial Plan – this section determines the investment that must be


poured into the business, and indicates whether the
business is an economically viable undertaking.

Assessment of Risk – effective business plans must contain section


that discusses the risks that might prevent the business
from achieving its objectives.
Timetable/Milestone – for both the entrepreneur and the
potential investors, knowing when major
activities will happen and when milestones
will be reached serves a useful purpose.

Appendices – to ensure that the main body of the business plan


is concise enough to include only the most essential
information, several items could instead be appended to the
document.

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