Look before you leap

 Tony worked for a local steel

dealership as a welder for over 20
years. He was the best welder at
the dealership, and he always
received very high customer
service ratings. One day, Tony
decided that because he was a
good welder, he could make more
money working on his own.
 At a local print and signage
shop, he had business cards
printed and a sign made that
read “Tony the Welder.” He
quit his job at the dealer on
Friday, put his sign up on
Sunday, and he was open for
business on Monday.
1. Tony made his decision very fast and
jumped right into owning his own
business. What do you think are
Tony’s chance for success?
2. What advice you would give Tony if he
had talked to you about his idea?
A business plan is a written
document that describes all
the steps necessary for
opening and operating a
successful business.
 What a business plan does?

1. Describes what your business

will produce, how you will
produce it and who will buy
your product or service
2. Explains who will run your
business and who will supply
it with goods
3. States how your business will
win over customers from
competitors and what your
business will do to keep
customers
 4. Provides detailed financial
information that shows how your
business will succeed in earning a
profit.
 Potential investors will want to know in
what you are asking them to invest
 Purposes of a Business Plan

 1. A business plan explains the idea

behind your business and spells out
how your product or service will be
produced and sold.

- What will you do to convince investors

that your business idea is solid?
 Purposes of a Business Plan

 2. A business plan sets specific objectives

and describes how your business expects to
achieve them.
What includes a good business plan?
 sales projection for the short term
 the medium term
 long term
3. It describes the
backgrounds and experience
of the people who will be
running the business
 Create Interest in your Business Plan

 Having always have a strong interest in

electronics and computers, Andy would
like to start a business building
customized computers for business and
personal use. He knew that he would
need about Php 200,000 to get his
business started. He had Php 100,000
in savings that he could use, but
 He was going to have to get a loan from
family, friends, or the bank for the
remaining Php 100,000. He sat down
one night to throw together a few facts
about his business and handwrote a list
of items that he needed to purchase.
The cost of items on the list totaled Php
90,000.
 He showed the information he had
compiled to his parents,
grandparents, aunt and uncle and
friend. No one was interested in
making an investment in his
business.
 Contents of a Business Plan

I. Introduction
a. The Business Concept and Business
Model
b. The Business Goals: Vision,Mission,
Objectives and Performance Targets
c. The Business Offering and
Justification
II. Executive Summary
III. The Business Proponents:
Organizers with their Capabilities
and Contributions
IV. The Target Customers and the
Main Value Proposition to the
Customer
 Contents of a Business Plan

V. The Market, Market Justification

based on the Industry Dynamics and the
Macro Environmental Factors Affecting
the Opportunities and Threats in the
Market, the Size, Potential and Realistic
Share of the Market
VI. The Product and Service Offerings
VII. The Enterprise Strategy and
Enterprise Delivery Systems:
Business Competitiveness
VIII. The Financial Forecasts and
Expected Returns,Risk and
Contingencies
 Contents of a Business Plan

IX. Environmental and Regulatory

Compliance
X. The Capital Structure and
Financial Offering: Returns and
Benefits to Investors, Financiers and
Business Partners
 I. Introduction

I.The

Contains the essence of the

enterprise in a concise but
powerful manner
It stresses the value of the
product being offered.
• The
- What critical factors will
drive the costs?
- How can these factors be
controlled?
3. What will be the major
investments of the
enterprise?
4. How will the enterprise
finance the investment? How
will the enterprise finance its
growth?
II. The Business Goals:
Vision,Mission,Objectives and
Performance Targets
- It shows the future and long-term
prospects of the enterprise.
- It also includes the key result areas and
the performance indicators
Case Example 1: Double Happiness

Vision: To establish a commanding

presence and market leadership as a food
chain servicing major bus terminals in
Central Luzon within the next five years.
Mission: To provide quality
food and passenger convenience
services that would generate
sufficient profits for the
stockholders and improve the
lives of its employees.
Objectives:
1. To establish a strong market
presence in Central Luzon
2. To earn good financial returns
for its owners
3. To delight customers with
high quality food and services
4. To make Double Happiness
a happy and rewarding place
to work in
 Double Happiness

OBJECTIVES KEY RESULT AREAS

1. To establish a strong market
presence in Central Luzon
2. To earn good financial returns for 2a. Amount of net profits realized
its owners
3. To delight customers with high
quality food and services
1a. Number of food outlets in major
bus terminals in Central Luzon
1b. Sales volume attained
1c. Market share in Central Luzon
for the next five years
2b. Return on equity (ROE)
2c. Return on assets(ROA) or return
on investments(ROI)
2d. Return on sales(ROS)
3a. Growth in sales per outlet
3b. Percentage of repeat customers
 OBJECTIVES KEY RESULT AREAS
4. To make Double Happiness 4a. Compensation and
a happy and rewarding place benefits of managers and
to work in workers are above industry
rates
 KEY RESULT AREAS PERFORMANCE INDICATORS
2014 2015 2020
(Now) (One Year (Five
Later) Years
Later)
1a. Number of food outlets in major 3 5 20
bus terminals in Central Luzon
1b. Sales volume attained P7 P13 Million P60
Million Million

1c. Market share in Central Luzon 2% 3%

12%

2a. Amount of net profits realized P 1M P 2M P 10M

for the next five years
2b. Return on equity (ROE) 30% 40% 60%
 KEY RESULT AREAS PERFORMANCE INDICATORS
2014 2015 2020
(Now) (One Year (Five Years
Later) Later)
2c. Return on assets(ROA) or return 15% 20% 30%
on investments(ROI)

2d. Return on sales(ROS) 14% 15% 16%

3a. Growth in sales per outlet 20% 20% 20%
3b. Percentage of repeat customers 30% 40% 50%
4a. Compensation and benefits of Same as 5% above 15% above
managers and workers are above Industr Industry Industry
industry rates y
II. Executive Summary
 II. The Executive Summary

- It’s a synthesis of the entire plan

- Contains the major
argumentations of the business
proponent on why the business
will work and succeed
- Should introduce and highlight
the good qualities of:
- 1. Business proponents and
their partners
- 2. The enterprise organization
and its capabilities
- 3. The technology providers
and their expertise and
experience
- 4. The suppliers and all the
major service providers
- Describe the products/services
- Features and attributes
- Justify the Enterprise Strategy
(builds and develops the game plan
for attaining competitiveness) and
- Enterprise Delivery System (the
entire process of converting
resources into output into
outcomes.
 Should render all the
operations,market, and
organizational strategies previously
cited into financial strategies and
forecasts
 Investment requirements should be
presented
- Should contain a section
on the environmental and
regulatory compliance of
the proposed business
- Capital structure
 III. The Business Proponents

- Contains information about the

business proponents or stakeholders.
Types of stakeholders:
1. Resource mobilizers and financial
backers ( to share the burden of
raising money)
2. Technology providers and applicators (
sufficient funds to pay for the teachnology)
3. Governance and top management (what
strategies and performance indicators are
being proposed)
4. Operating and support team (what
programs,activities tasks and resources
would be in place)
IV. THE TARGET CUSTOMERS AND THE
MAIN VALUE PROPOSITION

Target Customers must be of

sufficient size,paying capacity
and interest to purchase the
products
The Main Value Proposition - the
unique selling proposition
V. Market Demand and Supply,Industry
Dynamics and Macro Environmental
Factors
What do you think are the
factors that influences the
market?
 The business plan should estimate
the total market supply and
demand for the product offerings
and determine the major critical
factors that influence it.
Once these factors or variables
are determined,the business
plan should then forecast the
future demand and supply
 Industry Dynamics

It is the study of the means

and processes through which
industries change over time
through their own processes
of evolution.
 Industry Dynamics

Competing enterprise?What are

their comparative advantages
and disadvantages? What
business models and strategies
are they employing?
Suppliers? What are their
capabilities and
bargaining power?
Channels of distribution
 Macro Environmental Factors

Social Environment
- Demographic and cultural
dimensions
• Political Environment
- Includes the laws, rules, and
regulations on allowable and
disallowable business
practices
• Economic Environment
- Driven by supply and demand
forces
• Ecological Environment
- Includes all natural resources and
the ecosystem
 YOUR COMMENTS ARE IMPORTANT!

Jollibee delivery website

suspended due to 'vulnerabilities'
ABS-CBN News
Posted at May 08 2018 08:03 PM

 MANILA - The Philippines' data privacy

watchdog has ordered fast-food chain
Jollibee to suspend the operations of its
delivery website after the company admitted
vulnerabilities in its system.
 The National Privacy Commission,
in a notice dated May 4, ordered
the suspension of jollibee
delivery.com "for an indefinite time
until the site’s identified
vulnerabilities are addressed."
 The commission said Jollibee's
data privacy officer earlier
notified it that the website's
database protection was not up to
date, and some data, including
personal information, were
unencrypted.
An assessment conducted by the
commission's Complaints and
Investigation Division (CID)
also found Jollibee’s website
vulnerable to unauthorized
access.
 VI. Product/ Service Offering

- It is described by highlighting the

features and attributes of the
product/service.
VII. Enterprise Strategy (ES)
- Mapping of the competitive
landscape
- Situating the enterprise and its
competitors as to their strategies
and chosen positioning
 Enterprise Delivery System
Input Throughput Output Marketing Desired
Outcomes

• Harnessing • Conversion • Goods • Positioning • Customer

of of input produced or • Product satisfied
human,mo into output services • Packaging • Sales
ney,and and the delivered • Place volume
physical transformat • People attained
resources ion process • Promotion • Profits
• Resoures within the • Price generated
mobilized factory or • People
- money,men, service performance
machines,nate shop
rials,methods,
management
VIII. Financial Forecasts: Expected Returns, Risks and
Contingencies

Important Return Calculations:

1. Expected return on sales
2. Expected return on assets or investments
3. Expected return on stockholders’ equity
 IX. Environmental and Regulatory Compliance

The business plan must articulate the ff:

- Laws
- Rules and regulations governing the
business and the industry that the enterprise
is in.
X. Capital Structure and Financial Offering: Returns
and Benefits to Investors, Financiers and Partners
 Finally, the business plan must appeal
to its target audience. It must highlight
for them the main features of the
business plan that they are looking for.