MODULE 1: Introduction to Business Plan

• It is a document that outlines the basics of your business, products, and services; the market you are targeting; the goals you have for your business; and how you will achieve these goals.

  Business Plan
• It is designed to reveal whether a project or plan is feasible.

  Feasibility Study
• IMPORTANCE OF BUSINESS PLAN

  • Identifies key areas of your business so you can maximize the time you spend on generating income.
  • Key investors will want to look at your business plan before providing capital.
  • Helps you start and keep your business on a successful path.
  • Helps you make decisions.
  • Can give you new ideas.
• SOURCES OF BUSINESS IDEAS

  • Strengths and Abilities
  • Current Trends
  • Research Organizations
  • Travel
  • Friends and Family
  • Past Work Experience
  • Books and Magazines
  • Distribution Channels
  • Hobbies and Interests
  • The Web
• It is the first section of your small business plan that is typically written last

  Executive Summary
• This section highlights at least one important statement from each of the other sections in your business plan, while also including basic information about your business such as your business name and location, description of your business and its products and/or services, your management team, and the company's mission statement.

  Executive Summary
• The company description outlines vital details about your company, such as where you are located, how large the company is, what you do, and what you hope to accomplish.

  Introduction
• This section also describes the vision and direction of the company so potential leaders and partners can develop an accurate impression of who you are.

  Introduction
• Situations Analysis and SWOT Analysis

  • Background of Business
  • Market/Industry Analysis
  • Product History
  • Competitive Analysis
  • SWOT Analysis
• Competitive Analysis (Michael Five Forces)

  • Threat of New Entry
  • Buyer Power
  • Threat of Substitution
  • Supplier Power
  • Competitive Rivalry
• Threat of New Entry consists of:

  • Time and cost of entry
  • Specialist knowledge
  • Economies of scale
  • Cost advantages
  • Technology protection
  • Barriers to entry
• Buyer Power consists of:

  • Number of customers
  • Size of each order
  • Differences between competitors
  • Price sensitivity
  • Ability to substitute
  • Cost of changing
• Threat of Substitution consists of:

  • Substitute performance
  • Cost of change
• Supplier Power consists of:

  • Number of suppliers
  • Size of suppliers
  • Uniqueness of service
  • Your ability to substitute
  • Cost of changing
• Competitive Rivalry consists of:

  • Number of competitors
  • Quality differences
  • Other differences
  • Switching costs
  • Customer loyalty
• SWOT Analysis (Applicable for existing businesses) consists of:

  • Strengths
  • Weaknesses
  • Opportunities
  • Threats
• It is simply a plan describing how a business intends to make money.

  Business Model
• It lets you define these different components on a single page

  Business Model Canvas
• NINE ELEMENTS OF A BUSINESS MODEL CANVAS:

  1. Key Partners
  2. Key Activities
  3. Key Resources
  4. Value Propositions
  5. Cost Structure
  6. Customer Relationships
  7. Distribution Channels
  8. Customer Segments
  9. Revenue Streams
• MARKETING PLAN (w/ Product Prototype) consists of:

  • Target Market
  • Demand and Supply Gap Analysis
  • Marketing Mix
• HUMAN RESOURCES PLAN consists of:

  • Organization Structure
  • Job Description and Specification
  • Norm of Employee Contracts
  • Labor Term
  • Employee Training and Development
  • Attendance Policy
  • Behavior Employees
  • Guidelines for Disciplinary Action
  • Employee Uniform
  • Safety Equipment
  • Compensation Scheme and Benefits
  • Contribution Table
  • Proposed Working
• TECHNICAL/OPERATIONS PLAN consists of:

  • Workflow Process
  • Production Process
  • Production Process Schedule
  • PERT Diagram of the Production Process
  • Machineries and Equipment
  • Estimated Useful Lives of Assets
  • Summary of Expenses
  • Waste Disposal Management
  • Business Site and Business Layout (blueprint)
• COST STRUCTURE AND FINANCIAL PLAN consists of:

  • Project Cost
  • Sources of Capital
  • Financial Assumptions
  • Projected Financial Statements
  • Financial Ratio Analysis
• SOCIO-ECONOMIC ASPECT consists of:

  • Beneficiaries of the Project
  • Goals of the Company's CSR Program
  • CSR Project
  • Impact of the CSR Program