BUSINESS PLAN: AN OVERVIEW
It should include a market research that
THE BUSINESS PLAN
• A Business Plan is a written document that
defines the goals of your business and describes how
you will attain those goals.
• A Business Plan sets objectives, defines
budgets, engages partners, and anticipates problems
before they occur.
• It serves better as a roadmap, a guide to keep
you on track according to your purpose and your
mission.
• Potential investors are not likely to consider
investing in a new venture until the business plan has
been completed
• The business plan helps the entrepreneur
maintain perspective as to what needs to be
accomplished.
CONCEPT OF A BUSINESS PLAN
- A business plan is a written document prepared
by the entrepreneur that describes all the
relevant external and internal elements involved
in starting a new venture. It is often an
integration of functional plans such as
marketing, finance, manufacturing, and human
resources.
COMPONENTS OF BUSINESS PLANNING
1. Sales and Marketing
- Any sales and marketing decision made must be
based on a realistic sales estimate over the
period.
2. Operations
- Operational decisions cover Production,
Engineering, Distribution, Human Resources,
and Information Communication and
Technology.
3. Technology
- The use of Technology can generate a significant
market advantage that competitors find difficult
to match.
CHARACTERISTICS OF A SOUND
BUSINESS PLAN
1. A business plan should be detailed. In listing
products and services for example, it should
not stop by just enumerating them, it should
include the descriptions and scope of the
products and services.
2.
identifies competitors, the share of the market
and the range of the products produced. By
learning how competitors conduct their
operations, tricks of the
trade in the business may be learned
and entered to be used as a basis to
excel.
3. It needs to have a list of everything needed
which comprises the equipment, technology,
raw materials, financial and other resources
needed when starting and running a business
venture. Having all these listed will give an
idea on how much capital is needed before
the start-up and how much money should
made in a day to make the business survive.
4. It also needs to be written in formal format
and style since a business plan is something
that have to be presented to business partners,
financial firms and banks.
5. A business plan should be error – free. This is
important because the business plan defines
the business person.
WHY DO WE NEED A BUSINESS PLAN
1. A business plan is an effective tool for
defining the existing realities. It prompts
to analyze the business project or the
existing situation objectively and
critically, define a focus and set realistic
goals. It may also constitute the basis for
control and evaluation.
2. A good business plan will reveal
weaknesses or omissions in planning.
Because good business plans require
a guesstimate of risk calculation, it helps to
reduce risks.
3. It provides a valuable communication tool
presented in an organized, credible manner,
which allows lenders, outside directors,
investors, banks and employees to obtain a
complex view of the business. Even if, in
some cases, a business plan format is not
officially required when applying for a loan,
although most lenders will ask for one, the
very existence of a plan constitutes a plus, a
step forward in obtaining the loan.
 OUTLINE OF A BUSINESS PLAN
The Executive Summary
- The Executive Summary provides a concise
synopsis of the business plan, and highlights the key
points raised within. The Executive Summary must
communicate to the prospective investor the size and
scope of the market opportunity, the venture’s
business and profitability model, and how the
resources/skills/strategic positioning of the
Company’s management team make it uniquely
qualified to execute the plan. The Executive
Summary must be compelling, easy-to-read, and no
longer than 2-4 pages.
OUTLINE OF A BUSINESS PLAN
1. The Industry
-This section evaluates the playing field in
which the company will be competing, and includes
well-structured answers to key market research
questions such as the following:
• What are the sizes of the target market segments?
Growth rate? & Sales Projection?
• What are the trends for the industry as a whole?
• With what other industries do your services
compete?
• What is the industry structure, the nature of
participants & key success factors?
COMPANY DESCRIPTION
-This section begins with a general description of
the company.
Items to include in this section:
• Company description.
• Company history.
• Mission statement.
• Products and services.
• Current status.
• Legal status and ownership.
• Key partnerships (if any).
Outline of a Business Plan
2. Market Analysis
-This section assesses the customer segment(s)
that the company serves. In this section, the company
must convey the needs of its target customers. It must
then show how its products and services satisfy these
needs to an extent that the customer will pay for
them.
• The market analysis breaks the industry into
segments and zeros in on the specific segment (or
target market) to which the firm will try to
appeal.
• Items to include in this section:
- Market segmentation and target market
selection.
- Buyer behavior.
- Competitor analysis.
3. Competitive Analysis
-An investigation of direct and indirect
competitors, with an assessment of their competitive
advantage and an analysis of how it will overcome
any entry barriers to the chosen market.
4.Marketing Plan
-A detailed explanation of the sales strategy,
pricing plan, proposed advertising and promotion
activities, and product or service's benefits.
5.Management Plan
-An outline of the business's legal structure and
management resources, including the internal
management team, external management resources,
and human resources needs.
-The Management Team section demonstrates
that the company has the required human resources
to be successful. The business plan must answer
questions including:
• Who are the key management personnel and
what are their backgrounds?
• What management additions will be required to
make the business a success?
• Who are the other investors and/or shareholders,
if any?
• Who comprises the Board of Directors and/or
Board of Advisors?
• Who are the professional advisors (e.g., lawyer,
accounting firm)?
6.Operations Plan
-A description of the business's physical
location, facilities and equipment, kinds of
employees needed, inventory requirements and
suppliers, and any other applicable operating details,
such as a description of the manufacturing process.
-These sections detail the internal strategies for
building the venture from concept to reality, and
include answers to the following questions:
• What functions will be required to run the
business?
• What milestones must be reached before the
venture can be launched?
• How will quality be controlled?
-Outlines how your business will be run and how
your product or service will be produced.
-A useful way to illustrate how your business
will be run is to describe it in terms of “back stage”
(unseen to the customer) and “front stage” (seen by
the customer) activities.
-Items to include in this section:
• General approach to operations.
• Business location.
• Facilities and equipment.
7.Financial Plan
-A description of the funding requirements,
detailed financial statements, and a financial
statement analysis.
8. Appendices & Exhibits
-Any additional information that will help
establish the credibility of the business idea, such as
marketing studies, photographs of the product,
and/or contracts or other legal agreements pertinent
to the business.
-The Appendix is used to support the rest of the
business plan. Every business plan should have a full
set of financial projections in the Appendix, with the
summary of these financials in the Executive
Summary and the Financial Plan. Other
documentation that could appear in the Appendix
includes technical drawings, partnership and/or
customer letters, expanded competitor reviews
and/or customer lists.
MARKETING PLAN
-The marketing plan details the strategy for
penetrating the target markets. Key components
include the following:
•A description of the company’s desired
strategic positioning
• Detailed descriptions of the company’s
product and service offerings and potential
product extensions
• Descriptions of the company’s desired
image and branding strategy
• Descriptions of the company’s promotional
strategies
• An overview of the company’s pricing
strategies
•A description of current and potential
strategic marketing partnerships/ alliances
PRODUCTION PLAN
- A production plan is that portion of the
intermediate-range business plan that the
manufacturing / operations department is responsible
for developing. The plan states in general terms the
total amount of output that the manufacturing
department is responsible to produce for each period
in the planning horizon.
- The output is usually expressed in terms of
pesos or other units of measurement (e.g. tons, liters,
kgs.) or units of the aggregate product (this refers to
the weighted average of all the products in the
company). The production plan is the authorization
of the manufacturing department to produce the
items at a rate consistent with the company's overall
corporate plan.
- This production plan needs to be translated into
a master production schedule so as to schedule the
items for completion promptly, according to
promised delivery dates; to avoid the overloading or
under loading of the production facility; and so that
production capacity is efficiently utilized and low
production costs result.
ORGANIZATIONAL PLAN
-An organizational plan is basically a “to do” list for
an organization. It lists out the plan of work,
programs and organizational growth over a period of
time. The tasks involved, who is responsible for
them, and when they’ll be done.
An organizational plan helps to:
• Set priorities for work
• Make sure tasks get done on time
• Focus on one thing at a time
• Share work among staff, board members &
volunteers
• Make goals clear to investors
• Get a handle on big projects by breaking
them down
• See the big picture of what an organization
is doing.
ORGANIZING THE ENTERPRISE
-Common structural and operating components
and all businesses include a series of jobs to be done
and a specific overall purpose. Each organization
must develop the most appropriate organizational
structure -- the specification of the jobs to be done in
the ways in which they relate to one another.
-Firms prepare organization charts to clarify
structure and to show employees were they fit into a
firm's operations. Each box represents a job, and
solid lines define the chain of command, or reporting
relationships. The charts of large firms are complex
and include individuals and many levels. Because
size prevents them from charting every manager,
they may create single organization charts for overall
corporate structure and separate charts for divisions.

FINANCIAL PLAN
-The Financial Plan involves the development of
the company’s revenue and profitability model. It
includes detailed explanations of the key
assumptions used in building the model, sensitivity
analysis on key revenue and cost variables, and
description of comparable valuations for existing
companies with similar business models.

-In addition, the financial plan assesses the

amount of capital the firm needs, the proposed use of
these funds, and the expected future earnings. It
includes Projected Income Statements, Balance
Sheets and Cash Flow Statements, broken out
quarterly for the first two years, and annually for
years 1-5. Importantly, all of the assumptions and
projections in the financial plan must flow from and
be supported by the descriptions and explanations
offered in the other sections of the plan. The
Financial Plan is where the entrepreneur
communicates how he/she plans to “monetize” the
overall vision for the new venture.
REGISTERING YOUR BUSINESS WITH THE
GOVERNMENT AGENCIES
HOW TO REGISTER YOUR BUSINESS
How to register your Business in the Philippines
• There are a number of government agencies
you must register with in addition to opening
a bank account when starting a business in
the Philippines and hiring employees.
• It is essential to register your business to
avoid any legal problems once business
operations begin.
• How to Register Your Business In The
Philippines
• Depending on the structure of your business,
your first step is to get a certificate of
registration for your business name in one of
these agencies:
- Department of Trade and Industry
(DTI) – for single proprietorship
- Securities and Exchange Commission
(SEC) – for partnerships or corporations
- Cooperative Development Authority
(CDA) – for cooperatives
• After getting your certificate of registration,
you will need to visit the following offices:
- Homeowners Association – for
businesses inside villages and
subdivisions, you need to get a
homeowner’s clearance
- Barangay Hall – secure a barangay
clearance to operate your business
- Local Government Unit (LGU) – visit
the municipality or city hall office and
process your business permit
- Bureau of Internal Revenue (BIR) –
apply for a business taxpayer
identification number (TIN), register
your books of accounts, point-of-sales
(POS) machines and receipts
• At this point, you may now legally start your
business operations, but you’ll need to then
register your employees (which may include
yourself) to the following agencies:
- Social Security System (SSS) – secure
an SSS number for yourself and your
employees
- Department of Labor and
Employment (DOLE) – for businesses
with five workers or more, register your
business with DOLE
- Home Development Mutual Fund
(HDMF) – as required by RA 7742, SSS
members earning at least P4,000 a month
must be registered with HDMF. This
agency administers the Pag-Ibig Fund.
- Philippine Health Insurance Corp.
(PhilHealth) – all employers of are
required to register their employees to
this agency as stated in the New National
Health Insurance Act (RA 7875 / RA
9241). PhilHealth manages and
administers the government health care
system.
Other Registering Agencies
• Furthermore, there are certain businesses that
are required to secure a special clearance,
permit or license from selected government
agencies as follows:
- Animals, animal products, animal
facilities, veterinary drugs: registration
certificate from the Bureau of Animal
Industry
- Aquatic animals, importation, fishpond
lease agreement: permit from the Bureau
of Fisheries and Aquatic Resources
(DA-BFAR)
- Fertilizer products, pesticide products:
registration certificate from the Fertilizer
and Pesticide Authority (DA-FPA)
• Fiber, fiber products processing and trading:
registration certificate and commodity
clearance from the Fiber Development
Authority (DA-FIDA)
• Film and television production and
distribution: registration certificate from the
Movie & Television Review and
Classification Board (MTRCB)
• Firearms, ammunition and explosives: permit
from the Firearms and Explosives Division
of the Philippine National Police (FED-
PNP)
• Food, chemicals, health related business:
registration certificate from the Bureau of
Food and Drugs, Department of Health
(DoH-BFAD)
• Flour, corn and grains related business:
operations and license from the National
Food Authority (DA-NFA)
• Pawnshop, lending and finance related
businesses: registration certificate from the
Central Bank of the Philippines,
Department of Finance (DoF-BSP)
• Plants and plant products: nursery
accreditation, registration, seed and
phytosanitary certificates from the Bureau of
Plant Industry (DA-BPI)
• Recruitment or placement agency for foreign
employment: registration certificate from the
Philippine Overseas Employment
Administration, Department of Labor
(DOLE-POEA)
• Recruitment or placement agency for local
employment: registration certificate from the
Bureau of Local Employment (DOLE-
BLE)
• Schools, technical-vocational and other
educational institutions: registration,
accreditation and permits from the
Department of Education (DepEd),
Commission on Higher Education (CHEd)
or from the Technical Education Skills
Development Authority (DOLE-TESDA)
• Security agency business: permit from the
Philippine National Police, Department of
Interior & Local Government (DILG-
PNP)
• Meat plant and slaughterhouse operations:
accreditation and registration certificate from
the National Meat Inspection Commission
(DA-NMIC)
• Mining, quarrying, logging, waste
management and related businesses: permit
from the Department of Environment and
Natural Resources (DENR)
• Motor vehicles, automotive & heavy
equipment, engineering, electronics,
electrical, office & data equipments, medical
& industrial equipment, appliances &
devices: accreditation license from the
Bureau of Trade Regulation and
Consumer Protection (DTI-BTRCP)
• Real estate projects: register with the
Housing and Land Use Regulatory Board
(HLURB)
• Sugar, muscovado, sugar-based products and
related businesses: registration certificate
from the Sugar Regulatory Administration
(DA-SRA)
• Telecom business: license from the National
Telecommunication Commission,
Department of Transportation &
Communication (DOTC-NTC)
• Tourism-related projects: registration and
accreditation certificate from the
Department of Tourism (DOT)
• Transportation: permits from the Land
Transport Franchise & Regulatory Board
(DOTC-LTFRB) or Maritime Industry
Authority (DOTC-MARINA)
• Video production, sales and rental:
accreditation from the Optical Media
Board, Office of the President (OPOMB)
Additional information . . .
BIR (Bureau of Internal Revenue)
Who Needs to Register?
• Individual
• Sole Proprietorship
• Corporation/Partnership
-It all starts with the BIR. You cannot operate your
business without your business tax identification
number(TIN).
You need to do these at the BIR:
1. Register your business establishment and all its
branch offices, if any. You do this at the BIR
Revenue District Office (RDO) in the place where
your business is located. Once you obtain your
Certificate of Registration, you must display it in a
conspicuous place within your business
establishment.
2. Register your books of accounts. You accomplish
this at the same RDO.
3. Request for permit to print and issue receipts and
invoices. You must thereafter post a notice in your
business premises stating that your establishment
issues receipts; and that if no receipt is issued by the
cashier, then the customer must ask for one.
 -In relation to no. 3 above, you must also request
for a permit to use a cash register and point of sale
(POS) machines, as well as a permit to use loose-
leaf books of accounts, accounting records or a
computerized accounting system. If your business
has branches, each branch must have its own books
of accounts.
DTI (Department of Trade and Industry)
Who Needs to Register?
• Sole Proprietorship
-Before you can conduct business in the country,
you need to register a name associated to your
business. This is called business name registration
(BNR). This is required if a person will use a name
other than his true name.
SEC (Securities and Exchange Commission)
Who Needs to Register?
• Corporation/Partnership
- The SEC is an agency under the Philippine
Department of Finance that is responsible for
regulating the securities industry.
- It supervises all registered business entities in
the country (with the power to suspend and
revoke registrations), investigate violations
of securities laws and impose sanctions, and
make policies with regard to the market in
securities.
- It also supervises stock and bond brokers as
well as the stock exchanges.
Local Barangay
Who Needs to Register?
• Sole Proprietorship
• Corporation/Partnership
• You need to secure a company barangay
clearance first in the barangay where your
business will be operating. It is also a
requirement when registering for a Mayor’s
Permit.
City Hall
Who Needs to Register?
• Sole Proprietorship
• Corporation/Partnership
• A Business Permit is sometimes also referred
to as a Mayor’s Permit because it is processed
at the City Hall – the office of the mayor.
Securing a business permit from the Mayor’s
Office can only be done after accomplishing
two other registrations:
1. The registration of your business with the
Department of Trade and Industry or DTI (for
single proprietorship) or with the Securities
and Exchange Commission or SEC (for
partnership or corporation)
2. Securing a Business Barangay Clearance
SSS/PHILHEALTH/PAG-IBIG
Who Needs to Register?
• Individual
• Sole Proprietorship
• Corporation/Partnership
-The term “employee” denotes any person
legally employed in the Philippines, any person
compulsorily covered by the GSIS under the
Commonwealth Act 186, or any person
compulsorily covered by the SSS under Republic
Act 1161. Such employee is automatically
covered for these government-mandated
employee benefits. This includes self-employed
individuals or freelancers.