The document outlines the steps to developing an effective business plan: 1. Evaluate personal and community resources like skills, materials, funding and market needs. 2. Analyze the target market including customers, products, demand, competition and potential profits. 3. Select an appropriate business location with access to customers, facilities and supplies. 4. Create financial, production, organizational and management plans to guide business operations.

1. Developing a Business Plan

2. Business Plan
• serves as your guide in manging your enterprise.
• it indicates what to do, how to do this, when to do it and what to
expect in the future.

3. Basic Principles in Planning
• 1. Planning must be realistic.
- must be based on available human, financial and physical resources
2. It must be based on the needs of the community.
- these could be determined through environmentl scanning.
3. It must be flexible.
- should be able to adjust to plan if development changes in
government laws and policies.
4. Planning must starts with simple projects.
- it require simple management and technology

4. Steps in Business Planning

5. 1. Make an evaluation of your personal resources,
interest, available raw materials and available
specialized technical skills in your community.
• Try to answer the following questionS:
• a. Are you interested in trhe business?
• b. Do you have sufficient funds?
• c. Do you possess management skills?
- Are raw materials available?
- Does the goverment give financial and technical assistance?
- Do you have good personal relations with other people?

6. 2. Make an analysis or survey of your market.
a. Who are your customers?
b. What product or service will you offer?
c. Is there a good demand for your product or service?
d. Are the customers interested in the exixting product or services?
e. How many competitors are there in the market?
f. How much is your estimated share in the market?
g. Could you possibly offer a better quality product or service at a lower
price?
h. Is there a reasonable profit?

7. 3. Select a proper business location.
a. Is the location clean, decent, and peaceful?
b. Are there customers in the place?
c. Are facilities such as electricity, water, transportation and
communication available?
d. Is the place accessible to raw materials and other supplies?
e. In case first choice is not available,do you have a good alternative?

8. 4.Make a financial plan
a.Determine your objectives.
b.How much money will you need?
c.What are your sources of funds?
d.Does your budget determine how you will spend your money?
e.How soon can you recover your investment?

9. 5.Make a production plan.
a.Determine whetere to buy or lease the production equipment.
b.Will you improve the quality of an existing product?
c.Can your production scheme meet market demand?
d.Do you have a proper scheduling of production?

10. 6.Make an organizational plan.
a.Find out what type of organization is most suitable.
b.Are you acquainted with the laws,policies,and requirements of your
business organization?
c.Who will be your workers?
d.What will be the duties and responsibilities of each?

11. 7.Make a management plan.
a.Write down your goals and objectives.
b.Determine your strategies.
c.What customer policies will you adapt?
d.What human resource development program will you undetake?
e.What will be your program of social responsibility?