CONCEPT OF A BUSINESS PLAN• Written document prepared by entrepreneur that describes all the relevant external and internal elements involved in starting a new venture. (Hlsrich and Pters)• The plan is the direction and guide of the entrepreneur as to what is to be done and how to do it. It details out what is to be achieved over a certain period of time.
– Business plan is also a map that would guide the management team and its worker in achieving the plans of the business.– A business plan is also a document that convincingly demonstrates the ability of business to sell its products or services to make satisfactory profit and be attractive to potential backers(David E. Gumpert).– A business plan Is a selling document that conveys the excitement and promise of your business to any potential backers or stakeholders.
WHY THE NEED FOR A BUSINESS PLANA. To project a general picture of the business project.B. To serve as a guide in implementing the business or project.C. To serve as major input to investment decision or major expenditures.D. To serve as reference or guide to policy formulation and development.E. To serve as guide for operational matters.F. To serve as a reference for bank loan or financing purposes.G. To determine/estimate the detail technical and financial requirement.H. To serve as an overall guide for the proponent or entrepreneur.
For David Gumpert, a business plan is a selling point. With a business plan, you sell the entire company as package.These are the reasons:1. To sell yourself on a business2. To obtain a bank financing.3. To obtain Investment funds.4. To arrange strategic alliance.5. To obtain large contracts.6. To attract key employees.7. To complete mergers and acquisition.8. To motivate or focus your management team.
WRITING THE BUSINESS PLAN For some business proponents, one of themost difficult aspects of raising money is to getstory in formal or written form. Writing abusiness plan effectively can spell out a bigdifference between a success and failure inraising a capital for the business and operating abusiness itself. The financers will based 50% ofthe decision to lend or to invest in a project onthe presentation it receives both oral and written.
A WELL-WRITTEN BUSINESS PLAN A well- written business plan is one thatcontain all the information necessary for thefinancing source to make a decision evenwithout talking to the entrepreneur.
RULES TO OBSERVED Rules in writing a Business Plan 1. Make it Neat Appearance is important and it can reflect the personality of the maker. 2. Make it Grammatically correctBe sure to have the final version of the write up corrected or edited by professional or qualified editors.
3. Make it Honest Do not exaggerate or lie. 4. Written in Layman’s Language Communicate in simple language and not in technical jargon unless it is really called for. 5. Don’t over emphasize your product or Business.Product or service is just part of the business and the business itself requires a lot of other resources that is dependent from one another.
BUSINESS PLAN FORMAT Components of a Business Plan 1. Marketing Plan 2. Technical Plan 3. Financial Plan 4. Organizational Plan
THE FINANCIAL PLAN One of the common reasons why a written business or project feasibility study is necessary or usually needed is to convince a bank or directing company to finance the business project. The financial plan is the most important aspect of the business plan. This should include the:A. Total amount of funding neededB. Amount to be financed and equity componentC. Purpose of financingD. Specific use of fundsE. Description of collateralF. Historical financial record of the BusinessG. Financial projection and assumptions
H.Schedule of major assets and liabilitiesI. Management/ ownership structureJ. Financial status of owners/ stakeholdersK. Bank referencesL. Personal references of company officersM. Other supporting documents
THE PRINCIPLE OF DUE DILIGENCE Due diligence is the name work investor or financiers complete before a final investment decision is reached.
Who should prepare the plan or project study?The business plan or project/feasibility study has to be prepared by the entrepreneur himself being the proponent of the business project.
THE ROLE OF CONSULTANTS The business proponent may need theservices of consultants specially if the proposed business project is highly technical in nature. Both a management consultant a technicalconsultant may be hired depending on the scale of the project.
THANKYOU AND GODBLESS!!! By: Joanna Agustin Kristel Albacete Jennifer Aviso and Angeline Karla Palisoc