for entrepreneurship

1. DEVELOPING A BUSINESS PLAN
Lesson 1: Preparing a Business Plan

2. Business Plan
A formal statement of a set of business goals, the
reasons why they are believed attainable, and plan
for reaching those goals.
It may also contain background information about
the organization or team attempting to reach those
goals.

3. Focus of a Business Plan
Externally focused plans target goals that are
important to external stakeholders, particularly
financial stakeholders. They typically have detailed
information about organization or team attempting to
reach the goals
Internally focused business plans targets intermediate
goals required to reach the external goals . They may
cover the development of a new product, a new service,
a new IT system, a new restructuring of finance, or the
refurbishing of a factory

4. Categories of Business
Plan

5. 1. Business Plan
for Profit
•Typically focuses
on financial goals
2. Marketing
Plan
•Targets changes in
perception and
branding as its
primary goals

6. 3. Project Plan
•Describes the goals
of a particular
project
4. Business plan for
Non-profit and
government agency
•Tends to focus on
service goals

7. 5. Operational Plans
•Describes the goals of an internal
organization, working group or
department

8. Contain of Business Plan

9. 1. Executive Summary
• Guides proponents or investors on the overall
feasibility of the proposed project at a glance.
• It summarize the major highlights and finding ofeach
major aspect of the study.

10. 2. Project Background and
History
• Narrates the project conceptualization, and details
the events that led to the study.
• It also present the project proponents, the proposed
name of the project, the type of business
proposal/project, and the project location.

11. 3. Management and Personnel
Feasibility
• It pinpoint the project’s general to specific market
feasibility topics.
• It presents the market and an analysis of past,
present and future demand and supply situation for
the particular product(s).
• It present a summary of ales projections of the
project study’s entire duration and the project’s
marketing system and forms design.

12. 4. Production Feasibility
• Refers to the manufacturing aspects of the product.
• It including the details of what the product is and
how they will be produced/raised using proposed
location, production size(capacity) and lay-out.

13. • It also looks into the machineries and equipment,
raw materials and manpower requirements, as well
as the detailed, and civil engineering and lay outing
of the project, as applicable.
• It also present the project utilities, wastes and waste
management methods and the production system’s
documentation and forms.

14. 5. Financial Feasibility
• Enables the entrepreneur to know how much
capitalization will be needed to finance the project
and who will be the project’s financial.
• Identifies the financial soundness of the business
plan with presentation of some assumptions to the
financial projection’s as well as the projected
financial statement and financial analysis including
financial ratio, break even points, sensitivity
analysis, project rate of return, and payback period to
prove the financial feasibility of the project.

15. 6. Socio Economic Feasibility
• Viewing the project’s feasibility only from the point of
view or from the standpoint of the project’s
proponents/investors. This part are presents the
project’s feasibility as to how it will be beneficial to
other people and entities.

16. 7. Project Implementation and
Timetable
• Include the details of all activities to be considered
during the project’s pre-investment and pre-operating
phase and also the timetable of each of these
activities.
• The Introduction provides a positive overview of the
entire study, it includes the Mission Statement which
answer the following question;

17. Who is the customer?
What do they need?
What’s in it for the customer?
How does the company satisfy its stakeholders?

19. FEASIBILITY STUDY

20. • The preparation of a business plan complements the
project feasibility study. A major information source in
making a critical decision whether to go or not to go into
the business.
The advantages of writing down the result of the
feasibility study are as follows:
 the finding can be set out in a clear and logical way, so that
potential lenders can understand the business and its
likely/advantages. The document helps the entrepreneur to
clarify and focus his/her ideas.
It is a reference material that can be used to plan long term
development of the business.

21. The plan can be regularly consulted and updated as a guide to the
business development.
Mistakes can be made on paper rather than in the operation of the
business.
When the plan shows that a successful business is possible, it makes
the entrepreneur feel more confident to succeed.
It helps the entrepreneur to decide on how much money is needed and
if properly prepared, it gives the loan agency confidence that their
money will be paid.
Most lenders have understanding of the business and the
entrepreneur should therefore write the business plan in a simple way,
avoiding jargon and technical language as much as possible. If lenders
can understand what is involved in the business, most likely they will
approve the loan.
As a requirement, a detailed business plan is prepared before its

22. 1. Conducting a Feasibility
Study
• An idea a business is not a sufficient reason to begins
production straight away, without having thought
clearly about the different aspects involved in
actually running the business.
• To reduce the risk of failure and losing money,
potential producers should go through the different
aspects of running their business in discussion with
friend and advisers before they commit fund or try to
obtain a loan.

23. • Conducting a feasibility study need not be difficult or
expensive, but the most important aspects should all
be taken into account to endure that potential
problems are addressed. These are summarized in
the feasibility study checklist given below.
Question that can be answered by a feasibility study
are addressed:
Is there a demand for the product? (find out the
characteristics required of the product and the size and
value of the market).

24. Who else is producing similar products? (determine the
number and type of competitors).
What is needed to make the product? (find the
availability and cost of staff, equipment, service, raw
materials, ingredients and packaging).
What is the cost of producing a product? (calculate the
capital costs of getting started and the operating costs
of production).
What is likely profit? (calculate the difference between
the expected income from sales to an estimated share of
the market and the costs of production).

25. 2. Comparison between a
Feasibility study and a Business
Plan
a. A feasibility study conducted before a decision to
proceed (go/no no).
b. A business plan is prepared after a decision to
proceed (go/no go).
c. A feasibility study provides an investigative
function.
d. A business plan provides a planning function.

26. Feasibility
Plan
1. A feasibility
study conducted
before a decision
to proceed.
2. provides an
investigative
function.
Business Plan
1. prepared after a
decision to
proceed
2. provides a
planning function
PLAN