DEVELOPING

A BUSINESS
PLAN
Objective : Recognize a
Potential Market

“Business plan does not

guarantee the results you
want to accomplish but it’s
still a step closer to
making things work in
advantage”
 Factors to Consider of a
New Entrepreneur
1. Know your Product or
Service.
2. Analyze the Market
Potentials.
3. Determine the Marketing
Strategy
4. Know the Competitors
5. Do not set on your Laurels
Factors that Are
Contributory to
the Development
of Customer
Satisfaction
1.Business Location for
Small Entrepreneurs
a. Rent and Space
b. Terms of Lease Agreement
c. Type of Goods or Merchandise
d. Income Level of Prospective
Customer
e. Prospective Sales Volume
f. Municipal or City Ordinance
including taxes and fees
 g. Location of the Areas
2. Location for Small
Industrial Plant or
Manufacturing Facilities
a. Land Area
b. Facilities for Expansion
c. Power and Utilities
d. Building and other utilities
e. Plant Site Accessibility
 SWOT
ANALYSIS
 SWOT is an acronym for
Strengths, Weaknesses,
Opportunity and Threats.
 is a simple framework that
you can use to identify,
describe, and analyze the
strengths, weaknesses,
opportunities, and threats
facing your company or
business.
 Business Plan
- Steps in the business formation
have been done by the
entrepreneurs that applied a more
scientific study of the business
conditions.
- A business project either new or an
expansion must undertake a careful
planning of the project which will
serve as a guide in implementation.
 Factors to
Consider in
Creating or
Searching to
Business
Opportunities
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
1. Marketing and Distribution Study
- Deal with product detailed
analysis
- It should show the competitive
product advantage over existing
product or service and designing
the marketing program of the
entrepreneur.
- It should analyze market share
and system of promotion,
distributing, advertising media
and other marketing mix
strategies to ascertain market
product market acceptance and
patronage
2. Production and Technology Study
- refer to the need in making the
product or service
- this refers to the machineries,
plant location and other technical
aspect in the making of the
product
- shall describe the physical
layout of the building and the
equipment that will be used in
production.
3. Financial Management
- refers to the capital investment
and sources of funding the
operation of the business.
- It shall show financial
projections over a period of one
year and five years program and
shall determine the rate of return
of investments.
- must be able to show the return
on equity and break even sales as
well as pricing sensitivity test.
GENERAL FORMAT
OF A
COMPEREHENSIVE
BUSINESS PLAN
I. INTRODUCTION
- It contains the rationale
and the background of
the study undertaken. It
should include the
importance of the project
and the proponent’s
background and their
desire to establish the
business.
II. PROJECT SUMMARY
A. Name of the Firm
B. Business Location
C. Brief Description of the
Business
1. Brief history or how the
business organized.
2. Highlights of the findings in
every phase of the business
study.
III. MANAGEMENT AND
PERSONNEL COMPONENTS
IV. MARKETING STUDIES
A. MARKET PROFILE – this refers
to the market segmentation for
the distribution of the product or
service.
- the study must cover the
possible users of the product and
how to reach the particular
market segments.
B. Demand Analysis
1. Projected consumption
in the first year of
operation, then five years
and ten years operation
2. Major segment users
of the product and their
location.
C. Supply Analysis
1. Source of Product
Supply
a. Foreign Suppliers
b. Local Suppliers
2. Factor Analysis of the
Past and Future Supply
Chain
D. Competitive Analysis
1. Selling Price – this
refers to the selling price
of the product.
2. Competitions – it
refers to the competing
product in the market as to
its quality and market
acceptability.
 3. Distribution and Cost
of Transportation – it refers
to the transfer or
movements of products
from the producer to the
ultimate user. The usage of
different vehicles and ways
to transport the product
should be easily defined.
 4. Channel of Product
Distributions – this refers to
the means of reaching the
target market or it is the
method or strategy to
particular market segments
5. General Competitive
Practice – it is the analysis of
how competition distribute
the product to existing end
users.
F. Program Analysis of
Marketing Strategies
1. Geographic Segmentation –
this refers to the place of target
market and the approaches to
penetrate to market niche.
2. Psychographic Strategy –
this refers to educational
background and the lifestyle of
target market.
 3. Demographic Segmentation
Strategy – refers to the target
market as to age, income and the
other personal factors of the target
market.
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,
wholesaler, dealership, franchise or
direct marketing
 6. Promotion and Advertising –
media network, personal selling,
billboard, and any media penetration
strategy.
V. PRODUCTION
A. Product Specification – it tells
about the product or service that
the entrepreneur will offer to its
target market. It is an elaborate
presentation of the properties of the
products and the benefits related
therein. It is the service that will be
offered to the target consumer.
B. Production Process – it is the
detailed layout of the production
process as the products goes into
the production line indicating the
flow process, materials and
equipment to be used and normal
time table that product will
finished.
C. Plant Rated Capacity – this
refers to the volume of production
per shift per day or a monthly
basis considering
 D. Machinery and Equipment
E. Plant Location
F. Building Facilities
G. Raw Materials
H. Power Supply Utilities
I. Product Cost
VI. Financial Studies
A. For New Business Venture
B. For Existing Project