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Development of Business Plan

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DEVELOPMENT OF

BUSINESS PLAN
WHAT IS A BUSINESS PLAN FOR?
Entrepreneurs who plan to enter any business
endeavor must have a business plan on hand to guide
them throughout the process. Business plan serves
many masters. First, it serves the entrepreneur who
set a navigational course. Second, it serves investors
and cautious financers. And third, it serves the
managers and staff of the organization so they will
know the strategies and programs in the enterprise.
BUSINESS PLAN
FORMAT
I. Introduction
A. The Business Concept and the Business Model
B. The Business Goals; Vision, Mission, Objectives, and Performance
Targets
C. The Business Offering and Justification

II. Executive Summary

III. The Business Proponents: Organizers with their Capabilities and


Contributions

IV. The Target Customers and the Main Value Proposition to the
Customer.
V. The Market, Market Justification based on the Industry Dynamics and the
Macro Environmental Factors Affecting the Opportunities and Threats in the
Market, the Size, Potential and Realistic Share of the Market.

VI. The Product and Service Offerings

VII. The Enterprise Strategy and Enterprise Delivery Systems: Business


Competitiveness

VIII. The Financial Forecasts and Expected Returns, Risks, and Contingencies

IX. Environmental and Regulatory Compliance

X. The Capital Structure and Financial Offering: Returns and Benefits to


Investors, Financers, and Business Partners
CONTENTS OF
THE BUSINESS PLAN
The Business Concept and the Business Model
A business concept contains the essence of the
enterprise in a concise but powerful manner. It stresses
the value of the product offering to the target customers
who would most likely buy it.
A business concept must then be translated into a
business model. A business model is a formula on how the
enterprise exactly plans to make money out of the business.
There are four areas of moneymaking which the business
model must address.
1. How will the business raise revenue? What critical factors will cause
the revenues to materialize?
2. What will be the costs of the enterprise products and other costs of
doing business? How will these costs be managed to ensure
comfortable profits? What critical factors will drive the costs? How can
these factors be controlled?
3. What will be the major investment of the enterprise? Why will these
investments give the enterprise a competitive edge?
4. How will the enterprise finance the investment? How will the
enterprise fund its growth?
The Business Goals: Vision, Mission, Objectives,
and Performance Targets
The Business goals show the future and long-term prospects of
the enterprise. It is composed of the vision, mission, objectives, key
results areas, and performance indicators of the enterprise.

The business goals are communicated by articulating the basic purpose


of setting up the enterprise in a mission statement. Needless to say, all
business enterprise are established for the purpose of making money for
its investors.
The vision and mission statements must be then
translated into measurable end results, more popularly
called objectives.

Objectives must be more specific than the vision and


mission statements. They should be measurable,
achievable, and time-bound.
Objectives:
1.to establish a strong market presence in Central Luzon;
2.to earn good financial returns for its owners;
3.to delight customers with high quality food and services;
and
4.to make Double Happiness a happy and rewarding place
to work in.
The objectives should be then translated into key result areas
or KRAs. KRAs are the qualitative manifestations that the
objectives are being achieved

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