What is a Business Plan

for?
3 reasons why business plan is
adopted
1. It serves the entrepreneur who must set a
navigational course
2. It serves investors and cautious financier
3. It serves the managers and staff of the
organization so that they will know the strategies
and programs of the enterprise.
PLANNING THE
ENTERPRISE
 PLANNING THE
ENTERPRISE
THE TARGET COSTUMERS
AND THE MAIN VALUE
PROPOSITION
 THE TARGET COSTUMERS AND THE MAIN VALUE
PROPOSITION
Target Costumers
Sufficient Size

Sufficient Paying
Capacity
Sufficient
Interest
 THE TARGET COSTUMERS AND THE MAIN VALUE
PROPOSITION
Main Value Proposition – is the unique selling
proposition of the enterprise
o explains how your product solves customers’
problems or improves their situation (relevancy)
o delivers specific benefits
o tells the ideal customer why they should buy from
you and not from the competition
 THE TARGET COSTUMERS AND THE MAIN VALUE
PROPOSITION
What makes a good value proposition?
 Clarity! It is easy to understand.
 It communicates the concrete results a customer will get from
purchasing and using your products and/or services.
 It says how it’s different or better than the competitor’s offer.
 It avoids hype (like never seen before amazing miracle product),
superlatives (best) and business jargon (value-added interactions).
 It can be read and understood in about 5 seconds.
 THE TARGET COSTUMERS AND THE MAIN VALUE
PROPOSITION
Knowing where the target costumers are exactly concentrated the
business plan should pinpoint :

What the costumers

buy? they buy?
How
When they buy?
Where they
buy?
What convince them to
buy?
The double Happiness vision is to establish a commanding presence and market
leadership as a food chain servicing in major bus terminals in South Luzon within the next
five years. As the entrepreneur and the owner of the enterprise, design an organizational
structure to set the duties and responsibilities and standards for a specific position. Drawn
below is the organizational structure of Double Happiness. Fill out the job description and
job specification to complete the organizational structure.
 
 
 Double Happiness Organizational Structure
 
Genera Manager

Sales and MArketing

Production Supervisor Fiance Supervisor
Supervisor

Inventory Keeper Chef Sasles Execuive Marketing Executive Bookkeeper/Accountant CAshier

Messman
MARKET DEMAND AND SUPPLY,
INDUSTRY DYNAMICS, AND
MACRO ENVIRONMENTAL
FACTORS
 MARKET DEMAND AND SUPPLY, INDUSTRY DYNAMICS, AND
MACRO ENVIRONMENTAL FACTORS

Market Demand
• The business plan should estimate the total market
supply and demand for the product offerings of the
enterprise.
• The business plan should then determine the major
critical factors that influence this market demand
and supply.
 MARKET DEMAND AND SUPPLY, INDUSTRY DYNAMICS, AND
MACRO ENVIRONMENTAL FACTORS

The market analysis and forecasting exercise should

lead to a quantification of the current and prospective
size of the market. Both the current and potential
consumptions should then be dissected.
 MARKET DEMAND AND SUPPLY, INDUSTRY DYNAMICS, AND
MACRO ENVIRONMENTAL FACTORS

Industry
Dynamics
Who are the competing enterprises in the industry and what
are their comparative advantages and disadvantages? What
business models and strategies are they employing?
Who are the suppliers in the industry and what are their
capabilities and bargaining power?
What are the channels of distribution being used by the
industry? How effective are these channels?
 MARKET DEMAND AND SUPPLY, INDUSTRY DYNAMICS, AND
MACRO ENVIRONMENTAL FACTORS

Macro Environment
SOCIAL ENVIRONMENT
This includes the demographics and cultural dimensions that
govern the relevant entrepreneurial behavior. The structure,
social status, and dynamics of the population at large, as well
as the people’s beliefs, tastes, mores, customs, and traditions
dictate the major parameters of market behavior.
POLITICAL ENVIRONMENT
Defines the governance system of the country or the local area
of business. It includes all the laws, rules, and regulations on
allowable and disallowable business practices.
MARKET DEMAND AND SUPPLY, INDUSTRY DYNAMICS, AND
MACRO ENVIRONMENTAL FACTORS

ECONOMIC ENVIRONMENT
This is mainly driven by supply and demand forces. It is the
same factor that drives the interest and foreign exchange rates
to fluctuate with the movement of the market forces.
ECOLOGICAL ENVIRONMENT
This includes all natural resources and the ecosystem that defines the habitat of
men, animals, plants, and minerals.

TECHNOLOGICAL ENVIRONMENT
This makes or breaks competing participants in any industry. New scientific and
technological discoveries often lead to the launch and commercialization of new
products with superior attributes or to rendering the old ones obsolete.
PRODUCT/ SERVICE OFFERING:
DESCRIPTION, EVOLUTION, AND
JUSTIFICATION
 PRODUCT/ SERVICE OFFERING: DESCRIPTION,
EVOLUTION, AND JUSTIFICATION

The products/ services must be described

by highlighting the features and attributes that
would most appeal to the target costumers. The
business plan should also approve that the
products/ services would be accepted and
carried by the distribution channels.
 PRODUCT/ SERVICE OFFERING: DESCRIPTION,
EVOLUTION, AND JUSTIFICATION

Product/ Service Offering: Evolution

 ENTERPRISE STRATEGY AND
ENTERPRISE DELIVERY SYSTEM
 ENTERPRISE STRATEGY AND ENTERPRISE DILEVERY
STYSTEM

ENTERPRISE STRATEGY
The business plan should expound on the Enterprise Strategy
(ES) by mapping the competitive landscapes and by situating
the enterprise and its competitors as to their strategies and
chosen positioning.
 ENTERPRISE STRATEGY AND ENTERPRISE DELIVERY
SYSTEM

OUTCOMES
Costumers satisfaction level, profit
generated, and the performance of the
people
OUTPUT

The products/ services

THROUGHPUT

Input are converted to output

INPUT

Resources mobilized ENTERPRISE delivery system

 ENTERPRISE STRATEGY AND ENTERPRISE DELIVERY
SYSTEM
DESIRED
INPUT THROUGHPUT OUTPUT MARKETING
OUTCOMES
o Harnessing of o Conversion o Goods o Positioning o Costumers
human, money, of input produced or o Product satisfied
and physical into output services o Packaging o Sales volume
resources and the delivered o Place attained
o Resources transforma o People o Profits
mobilized tion o Promotion generated
 Money process o Price o People
 Men within the performance
 Machines factory or
 Materials service
 Methods shop
 Management

ENTERPRISE STRATEGY
 ENTERPRISE STRATEGY AND ENTERPRISE DELIVERY
SYSTEM
The EDS involves the harnessing of human, money, and physical
resources from well selected sources.

These resources become the input (money, men, machines,

materials, methods, and management) which the Operation unit within
the EDS (i.e., the manufacturing or service delivery personnel) will
convert or transform(throughput) into output.

The output will then be delivered to the costumers through the

Marketing unit of the EDS. The products/services of the enterprise are
positioned to meet the requirements of the selected market segment
by choosing the right packaging, pricing, promotion, people for selling
and distribution, and places or locations where the targeted costumers
can best be found.
 ENTERPRISE STRATEGY AND ENTERPRISE DELIVERY
SYSTEM

The Operations Marketing units are supported by the Finance,

Administration, and Human Resources Management units, which
oversee the flow of the money, the procurement and maintenance of
machinery and materials, and ensure the proper deployment and
development of people.

The EDS serves as the enabler of the Enterprise Strategy. The

business plan must demonstrate how the EDS and the ES tandem lead
to the attainment of the desired enterprise outcomes.
 ENTERPRISE STRATEGY AND ENTERPRISE DELIVERY
SYSTEM
The business outcomes should reasonably include:

High customers satisfaction levels;

High sales volume, market share, and market reach;
High financial returns; and
High people performance, productivity, and morale
levels
 FINANCIAL FORECASTS:
EXPECTED RETURNS, RISKS,
AND CONTINGENCIES
 FINANCIAL FORECASTS: EXPECTED RETURNS, RISKS, AND
CONTINGENCIES
The business plan must translate everything into financial
forecasts and outcomes.

From the financial forecasts, the business plan should then

calculate the expected returns from the business. The important
returns calculations are the following:
 Expected return on sales;
 Expected return on assets or investments; and
 Expected return on stockholders equity
 FINANCIAL FORECASTS: EXPECTED RETURNS, RISKS, AND
CONTINGENCIES
The business plan should also calculate the long-term returns,
using the time value of money. This means estimating the
internal rate of return and the expected net present value.

The business plan should then evaluate both the business

risks and the financial risks involved.
 ENVIRONMENTAL AND
REGULATORY COMPLIANCE
 ENVIRONMENTAL AND REGULATORY
COMPLIANCE
The business plan must articulate the laws, rules, and
regulations governing the business, and the industry that the
enterprise is in. it should ascertain that all the necessary permits,
licenses, and authority to use proprietary intellectual capital had
either been secured or would definitely be secured.

The business plan should also assure the reader that all the
necessary local government ordinances and barangay ethics
would be followed by the enterprise.
 CAPITAL STRUCTURE AND
FINANCIAL OFFERING: RETURNS
AND BENEFITS TO INVESTORS,
FINANCIERS, AND PERTNERS
 CAPITAL STRUCTURE AND FINANCIAL
OFFERING
• Business plan contains the capital structure and financial
offerings of the enterprise including some discussion on who
are the investors, the financiers, and the partners of the
enterprise.

• Finally, the business plan must appeal to its target audience.

It must highlight for them the main features of the business
plan that they are looking for.
Thank you and
God bless