SESSION-2

Business Plan DevelopmentObjectives:

1. To define what the business plan is, and who prepares it2. To understand the scope and value of the business plan

to investors, lenders, employees, suppliers, and customers

3. To identify information needs and sources for each critical section of the business plan

4. To present examples and a step-by-step explanation of the business plan

5. To present helpful questions for the entrepreneur at each stage of the planning process

What is Business Plan?

BP is …..

a written document prepared by the entrepreneur that describes all the relevant external and internal elements involved in starting a new venture

Useful for new venture or for the expansion of the existing business

A Good Business Plan is...

completeshortintegratedprepared for the audienceorganized

Who should write the plan?Entrepreneur, with:

Lawyer Accountant Financial consultant Marketing consultant Engineer, etc.

or: Professional consultant

Source of information: Gov. Agency University Association Internet etc.

How is BP evaluated?

Suppliers: to supply components or finished goods, the number

of materials, etc. Customers:

products, quality, quantity, after sales service, etc.Lenders/Bank:

the ability to pay back the debt, potential risk, etc. or 4 Cs of credit (character, cash flow, collateral, equity contribution)

Investors: pay back period, ability to generate income (return),

etc.

Information needs:Production and operation information

needs: location, manufacturing operations, raw material,

equipment, labor skills, space, overhead

Marketing information: market potential, STPD (Segmentation,

Targeting, Positioning, Differentiation)

Financial information needs:Sales forecasting, capital expenditures, direct

operating expenses, etc.

Outline of BP:

I. Introductory PageII. Executive SummaryIII. Environmental and Industry AnalysisIV. Description of VentureV. Production PlanVI. Operational PlanVII. Marketing PlanVIII.Organizational PlanIX. Assessment of RiskX. Financial PlanXI. Appendix

I. Introductory Page

1. Name and Address2. Name of the entrepreneur(s), telp

number, e-mail address, student ID3. Nature of Business4. Statement of Financing Needed5. Statement of Confidentially Report

IV. Description of Venture

1. Product(s) and or Service(s)2. Size of Business3. Office Equipment and Personnel4. Background of Entrepreneurs

Let’s do it!

Finalize the business idea, etc. Finalize the organization

structure Compose Chapter I and IV