DEVELOPING

A BUSINESS
PLANPresented By :
Shahir Lee Barroga
Christine Joyce Lagumay
Joyce Estrella
Angela Via Marinas
 FACTORS TO BE
CONSIDERED BEFORE
VENTURING INTO THE
FIELD OF BUSINESS
1
1. KNOW YOUR PRODUCT OR SERVICE
Customers want to try new products but it must be better than those existing in the
market.

2. ANALYZE THE MARKET POTENTIALS

He analyze customers' profile as to their buying habits, income, and social status.

3. DETERMINE THE MARKETING STRATEGY

A unique product or service needs effective distribution strategy to get customer into
the basket of demand potential.

4. KNOW THE COMPETITORS

In launching a product with existing competitors, one must know their strengths and
weaknesses.

5. DO NOT SET ON YOUR LAURELS

The landscape of business is continuously changing.
ENVIRONMENTAL
SCANNING
2
1. BUSINESS LOCATION FOR SMALL ENTREPRENEURS
-A retail outlet would need a site that is convenient to
prospective customers in terms of parking space or
availability of transportation.
a. Rent and Space- the cost of rent is a regular monthly
expense and it must be sustained with the possible
income that will be generated.
b. Terms of Lease Agreement - The term of lease must be
studied carefully as some owners of space might take
advantage of lessee.
c. Type of Goods or Merchandise- A convenient store is
located where there are pedestrians passing by.
d. Income Level of Prospective Customer - The type of
pedestrians and the income level of customer must be
taken in to account.

e. Prospective Sales Volume - High density sales volume

need to be located in shopping areas where customers
converse to buy essential goods.

f. Municipal or City Ordinances including taxes and fees -

The location must not violate city or municipal ordinances
and the taxes and fees must be reasonable for the owners
of business.
2. LOCATION FOR SMALL INDUSTRIAL PLANT Or A
MANUFACTURING FACILITIES- Environmental factors in
locating a manufacturing plant or industrial facilities need
to be studied carefully as plant location is a great factor in
the investment of funds and its profitability in the long
run.

a. Land Area- the contour of the land, its size, and shape
must be suitable to the plant site.

b. Facilities for Expansion- the land area must have ample

space for plant expansion and provisions for parking
facilities for customers and employees.
c. Power and Utilities- availability of power
supply and the cost of electricity involved in
the operation are great factors in the
production of goods.

d. Building and Other Utilities - the building

must be within the restrictions code of the
municipality or city.

e. Plant Site Accessibility - the plant site must

 STRENGTHS,
WEAKNESSES,
OPPORTUNITIES,
AND THREATS
(SWOT) 3
 SWOT
The entrepreneur must look at how strong he is to combat
the weaknesses on his side and this needs strong
determination to succeed with caution.
The product must be evaluated along the
following areas:
1. Product strength in the market must
have the following:
a. Available Technology in Product
Processing
b. The Source of Raw Materials must be
Abundant and at Lower Price
c. Skilled Workers must be Available
d. Capital Investment in
Machinery and Operating
Expenditures

e. Expertise and Technical Skills of

the Management Team
2. Characteristics of Weak Products and
Weak Management

a. Poor Quality and High Price

b. Product Design and Appeal
c. Production Cost
d. Supply and Demand
e. Weak Product Management
3. Sustainable Product Opportunities in
the Market:
a. Product Demand
b. Presence of Poor Quality in the
Market
c. Government Policies and Support
d. Liberal Credit Terms and Interest
Rates
 4. Treats to Product Profitability
and Market Expansion
a. Entrance of Competition
b. The supply of raw materials will be limited
as other competitors will be getting the same
suppliers
c. The Emergence of Leftwing Labour Unions
d. The Presence of Double Taxation
e. Peace and Order in the Area of Business
 THE
ENTREPRENEUR
SHOULD LOOK
DEEPER INTO THIS
FOLLOWING 4
1. THE MANAGEMENT TEAM
Management must be able to set the direction of
the enterprise with a clear MISSION and VISION
as the guiding tool for its plans and programs.
The technical and manpower complements
are important factors in the success of the
business
The management must introduce
new technology to make work easier
for the working team.
2. THE PRODUCTION PROCESS
Product specifications must be maintained
according to product standards that are
acceptable to customers.
The management must look into cheap
available raw materials in the
production of goods.
Inventory reports must be available and
warehousing activities are supervised
accordingly.
3. THE MARKETING PROGRAM
A new product would need
customer view point before it is
launched into the market.
The demographic profile of the
target customer must be taken into
account as the success of the
product depends on the target
 4. THE FINANCIAL
MANAGEMENT
Venturing into a business needs financial
resources. Money is needed to finance
the activities of business. Whatever
capital is available determines the kind
of business operation.

Banks are external sources of

funds.
 THE
IDENTIFICATION
OF BUSINESS
OPPORTUNITY 5
 1. THE STARTING POINT OF CONCEIVING
THE IDEA OF THE TYPE OF BUSINESS

Conceiving a new product is a process of

innovation and when this come into a
reality, the product must be different from
an existing product.
The entrepreneur must find a new
approach to win customer on his
side if the product or service is
similar to what is existing in the
 2. THE TECHNICAL FEASIBILITY AND TIME
FRAME

An idea is not only concentrated on one

entrepreneur. The entrepreneur might
have conceived an idea that is also in the
mind of other person.

The new product needs testing as

to its technical capability to satisfy
customers' needs and wants.
 TIPS IN
CHOOSING THE
BUSINESS
6
1. Easy to recall or remember
2. Pleasant meaning creates
pleasant feelings
3. Easy to pronounce
4. Easy to spell
5. Related to the product
 ORGANIZING
THE BUSINESS
ENTERPRISE 7
 >It is not enough that you have
the capital and resources to go into
business as it involves not only
material assets but personal values
and characteristics.
Some entrepreneurs failed
because they are "plain copy cats"
in putting the business
 THE EVENT
FORMATION
PROCESS FOR
ENTREPRENEURS 7
1. The Change in Life Path
2. The Desirability of the
Business Concept
3. The Feasibility of
Implementation
4. Forming the Business
Enterprise
BUSINESS
PLAN

8
is a document that outlines a
company's goals and the
strategies to achieve them.
In creating or searching to business
opportunities, one must consider the following
factors:
1. The needs of the society
2. Availability of capital resources
3. Business inclination
4. Clientele
5. Availability of raw materials
6. Human Resources
7. Nature of product or service
BASIC PHASES OF
BUSINESS PLAN

9
1. Management Structure and
Component
2. Marketing and Distribution
System
3. Production and Technology
4. Financial Management
GENERAL FORMAT
OF A
COMPREHENSIVE
BUSINESS PLAN 10
I. INTRODUCTION
The introduction contains the rationale
and the background of the study
undertaken.
II. PROJECT SUMMARY

A. Name of the Firm

B. Business Location
C. Brief Description of the Business
1. Brief history or how the business was organized.
2. Highlights of the findings in every phase of the
business study.
III. MANAGEMENT AND PERSONNEL
COMPONENTS

organisation, jobs and people.

IV. MARKETING STUDIES

A. Market Profile
B. Demand Analysis
C. Supply Analysis
D. Competitive Analysis
1. Selling Price
2. Competition
3. Distribution and Cost of
Transportation
4. Channel of Product Distributions
5. General Competitive Practice
E. Program Analysis of Marketing Strategies
1. Geographic Segmentation Strategy- this
refers to the place of target market and the
approaches to penetrate the market niche.
2. Psychographic Strategy - the educational
background and the lifestyle of target
market.
3. Demographic Segmentation Strategy- it
means the target market as sex, age,
income and the other personal factors of the
4. Pricing Strategy - This has something to
do with the price index of any pricing
strategy that will attract customers.
5. Channel of Distribution- the choices could
be retailers, wholesalers, dealership,
franchise, or direct marketing.
6. Promotion and Advertising - media
network, personal selling, billboard, or any
media penetration strategy.
V. PRODUCTION

A. Product Specification
B. Production Process
C. Plant Rated Capacity
D. Machinery and Equipment
E. Plant Location
F. Building and Facilities
G. Raw Materials
H. Power Supply and Utilities
I. Production Cost
VI. FINANCIAL STUDIES

A. For New Business Venture

1. Total Project Cost
2. Capital Investments Required
3. Pre-operating cash flow and its relation to time
table
4. Supporting Schedules in the Financial
Statements and Income
5. Projected Financial Estimates showing return on
investments, return on equity, break-even
VI. FINANCIAL STUDIES

B. For Existing Project

1. Audited Financial Statement-last 3 years
a. Balance Sheet
b. Income Statement
c. Cash Flow
2. Fixed Assets, Capital Investments,
Depreciation used in Capital Assets.
3. Tax Assessment, Liabilities, and other
Payables.
VI. FINANCIAL STUDIES

4. Financial Trends and Ratio Analysis.

5. Financial Cost for Administrative expenses,
Production and Selling Expense.
6. Financial Projection for the Next Five Years.
7. Financial Analysis for Return of Investment,
Return of Equity, Break even Analysis,
Production Volume and Price Analysis.
MICRO BUSINESS
PLAN
11
•blueprint to success
and document details
what you plan to do
with your venture.
A. Executive Summary
-Synopsis of your business plan, this part
should be written last in order to include all
the necessary information and target points of
the document.

B. Marketing Plan
-must be able to tell how fast or slow your
product will move in the market
C. Operations Plan
-the company's expected sales for the coming year and
the costs of running the business in general. Determining
the number of people to hire to keep your perspective
business running smoothly is also a must.

D. Financial Plan
-According to Dr. Ferreria, "Your financial plan must show
how much money is needed to generate sales; how much
is going to be spent on a particular item; and how much
will be borrowed and paid."
THANK YOU