Chapter 7 entrep
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Chapter 7 entrep Chapter 7 entrep Presentation Transcript

  • CHAPTER 7 Developing A Business Plan
  • WHAT BUSINESS PLANNING EXPLAINED?
    • Planning is -What to do.
    • -How to do it.
    • -When to do it.
    • -What to expect in the future.
    • It involves the attainment of goals, and the way to accomplish such goals.
  • PRINCIPLES OF PLANNING
    • (General application particularly for micro and small business)
    • Planning must be realistic
    • Planning must be based on felt needs
    • Planning must be flexible
    • Planning must start with simple projects
    View slide
  • STAGES OF BUSINESS PLANNING
    • ( Based on Phillip Kotler)
    • Unplanned stage- the owner- manger is busy looking for funds, customers. Materials and equipment.
    • Budgeting- System stage- the owner- manager realizes the need to develop budgeting system.
    • Annual planning stage- the owner drafts an annual plan.
    • Strategic planning stages- this is a 3 or 5 year planning.
    View slide
  • CRITERIA OF EFFECTIVE PLANNING
    • The plan should state clearly its objectives.
    • 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
    • SWOT
    • Objectives
    • Strategies
    • Time frame
  • ACTIVITY MONTH 1 2 3 4 5 6 7 8 9 10 11 12
    • Market analysis
    2. Strategies Organizational Financial Production marketing 3. Open business 4. Ten percent sales increase 5. Purchase equipment
  • CHARACTERISTICS OF SOUND BUSINESS PLAN
    • Objective
    • Clear
    • Logical and simple
    • Flexible
    • Stable
    • 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
    • Cover sheet:
    • Name of business, names of principals, address and phone number
    • Business goals
    • Strategies
    • Table of Contents
    • SECTION ONE: The Business
    • Description of Business
    • Product/ Service
    • Market
    • Location of Business
    • Competition
    • Management
    • Personnel
    • Application and Expected effect of Loan ( if neede)
    • Summary
    • SECTION TWO: Financial Data
    • Sources and Application of Funding
    • Capital Equipment List
    • Balance Sheet
    • 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
    • Tax returns
  • 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
    • THE END
    • SALAMAT SA LISTENING!
    • GODBLESS!
  • 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
  • 11-13. COMPONENTS OF BUSINESS PLANNING
  • 13- 18 CHARACTERISTICS OF SOUND BUSINESS PLAN
  • 19-20 IMPORTANCE OF BUSINESS PLANNING