The plan should provide measures for a satisfactory accomplishment of the objectives in terms of quantity, quality, time and cost.
The plan should state the policies which should guide people in attaining the objectives.
The plan should indicate what department or unit will be involved in accomplishing the objectives.
CONTINUATION- PRINCIPLE OF CRITERIA OF EFFECTIVE PLANNING
5. The plan should indicate the time which should be allowed for each activity.
6. The plan should specify the required resources and their corresponding costs.
7. The plan should designate the officers who will be held accountable for the accomplishment of the objectives.
COMPONENTS OF BUSINESS PLANNING
ACTIVITY MONTH 1 2 3 4 5 6 7 8 9 10 11 12
2. Strategies Organizational Financial Production marketing 3. Open business 4. Ten percent sales increase 5. Purchase equipment
CHARACTERISTICS OF SOUND BUSINESS PLAN
Logical and simple
Complete and integrated
OBTAIN THE FACTS FOR A BUSINESS PLAN
( Here are the questionnaires to get the necessary data)
What is unique about my products/ service?
Who are my competitors?
How will my customers buy?
What is my share in the market?
What is the market potential?
Who are my customers and where are they located?
Where will I put up my business?
OUTLINE OF A BUSINESS PLAN
Name of business, names of principals, address and phone number
Table of Contents
SECTION ONE: The Business
Description of Business
Location of Business
Application and Expected effect of Loan ( if neede)
SECTION TWO: Financial Data
Sources and Application of Funding
Capital Equipment List
Break- Even Analysis
Income Projections ( Profit and Loss Statements)
Five year summary
Detail by month for first year
Detail by quarter for second, third, fourth, and fifth year
F. Cash flow Projection
Detail by month for first year
Detail by quarter for second, third, fourth, and fifth years
Notes of Explanation
G. Deviation Analysis
H. Historical Financial Reports for Existing Business
Balance sheets for past five years
Income statements for past five years
SECTION THREE: Supporting Documents Personal resumes, personal balance sheets, cost of living budget, credit reports, letter of reference, job descriptions, letters of intent, copies of leases, contracts, legal documents, and anything else relevant to the plan.
STEPS IN BUSINESS PLANNING
Evaluate your personal resources and interests, and the resources of the community.
Analyze your market
Choose a proper business location
Prepare a financial plan
Prepare a production plan
Prepare an organizational plan
Prepare a management plan
THE IMPORTANCE OF BUSINESS PLANNING
Planning can eliminate business risks
Planning can minimize costs of production
Planning can detect the weaknesses of the business operations
SALAMAT SA LISTENING!
CHAPTER 7 QUIZ
1. STAGE OF BUSINESS PLAN THAT IN 3 OR 5 YEAR PLANNING.
2. IT IS THE STAGE OF BUSINESS PLAN THAT THE OWNER DRAFTS AN ANNUAL PLAN.
3. THE OWNER- MANAGER REALIZES THE NEED TO DEVELOP BUDGETING SYSTEM.
4. THE OWNER- MANGER IS BUSY LOOKING FOR FUNDS, CUSTOMERS. MATERIALS AND EQUIPMENT.
5 . PART OF BUSINESS PLAN OUTLINE THAT TELLS THE NAME OF BUSINESS, NAMES OF PRINCIPALS, ADDRESS AND PHONE NUMBER
6 . SECTION OF FINANCIAL DATA THAT TELLS THE SOURCES AND APPLICATION OF FUNDING
7. PART OF BUSINESS PLAN OUTLINE THAT TELLS THE NAME OF BUSINESS, NAMES OF PRINCIPALS, ADDRESS AND PHONE NUMBER
8 . SECTION OF BUSINESS PLAN THAT TELLS THE PERSONAL RESUMES, PERSONAL BALANCE SHEETS, COST OF LIVING BUDGET, CREDIT REPORTS, LETTER OF REFERENCE, JOB DESCRIPTIONS, LETTERS OF INTENT, COPIES OF LEASES, CONTRACTS, LEGAL DOCUMENTS, AND ANYTHING ELSE RELEVANT TO THE PLAN.
9 . IT INVOLVES THE ATTAINMENT OF GOALS, AND THE WAY TO ACCOMPLISH SUCH GOALS.
10. THE OWNER- MANGER IS BUSY LOOKING FOR FUNDS, CUSTOMERS. MATERIALS AND EQUIPMENT