The

Business Plan
 Learning Targets

Identify the Determine the

different Analyze the possible
sources of market need product/s or
business service/s that
opportunities will meet the
 Old Man-out
Analyze the following set of
words. Identify which does not
belong to the group.
STE ICT
M
ABM HUMS
S
Janua Februa
ry ry
Marc May
h
2 3
4 6
1. What was your basis in choosing the “odd
man-out” in each set of words?
2. What is common among the remaining
words in each group?
3. How are you going to apply the same
concept in deciding on your own business
ventures?
Entrepreneurial venture starts with an opportunity
that an entrepreneur needs to exploit.
The ways for you to uncover or discover these
opportunities are limitless: from noble ideas through
utilization of new technologies or ideas to observing
emerging trends and patterns and identifying specific
customer segments.
Market refers to a group of people or organizations
that has an interest on a product or service (satisfying
their needs and wants), has resources and, permitted
by law and other regulations to purchase the given
product or service.
One way to recognize a potential market is to analyze
the market need and opportunities through its
environment.
Macro Environmental Sources of
Opportunities
3. Economic
1. Socio
Environment
cultural
Environment
5.
4. Ecological Technological
2. Political Environment
Environment
Environment
 1. Socio Cultural

Environment
This includes the demographic and cultural
factors including beliefs, tastes, customs and
traditions.
 a. Social Forces

These are elements of the society resulting from human

interactions that can influence the thoughts, behaviors, attitude,
actions, and even the beliefs and customs of the people. This may
include values, traditions, literacy level or consumer psychology
Feminism, the advocacy of gender equality that supports giving women
significant tasks in the community. Subsequently, some religious groups
which follow certain doctrines such as nonconsumption of blood or pork
may affect the customers’ purchase of products.
 b. Cultural Forces

These basically refer to the integrated characteristics of a group of people

or ethnic group in a particular society.
Cultural diversity is clearly manifested in the Philippines due to the
presence of different ethnic groups with different languages and
traditions. A certain practice of one group might be unacceptable with
another group.
Pinikpikan of the Cordillera region is a chicken dish wherein during the preparation, the
chicken is slightly hit on its neck and wings for its blood to coagulate. This process is
considered a tribal ritual that their people use to identify the fate of their tribe regarding a
particular course of action. However, this preparation might not be acceptable to some
animal advocates.
 2 , Po l i t i c a l E n v i ro n m e n t

This depicts the governance system of an area or the local region of

the business enterprise. It includes but not limited to laws, rules,
and regulations that control their business practices along with
permits, approvals, and licenses required to manage a business.
In some cases, voluminous documentary requirements in every
government office and the amount of fees and taxes in processing
them may contribute to the loss of interest of the entrepreneur on
opening a venture.
 3, Economic Environment

This is characterized by the income level of a region which in turn

dictates the purchasing power of the customers. Competitiveness of
its industries and enterprises also defines this type of environment.
Bataan is known to be an industrial province with all the industries
that can be seen here: from garments to fuel to power plants. This
in turn creates employment to its citizens, improving the quality of
their lives. This opens opportunities for business such as food,
transportation, house rentals or laundry services.
 4, Ecological Environment

This includes living and non-living things around us. A growing

environmental awareness for taking care of our planet and
prolonging of lives opens opportunities for business. Drives for a
clean and green earth and healthier living gives birth to ideas such
as air filters, energy saving devices and the likes.
Envirotech Waste Recycling gathers plastic trash such as chips
packaging, plastic straws, shampoo sachets, plastic bags, candy
wrappers and the likes and transform them into building materials
and even furniture.
 a. Climate

This refers to the average weather in a particular area over a long

period of time. Philippines as a tropical-maritime country has a
climate characterized by relatively high temperature, high humidity
and abundant rainfall visited by several typhoons in a year.
Batanes is frequently visited by typhoons making it difficult for farmers to
grow crops such as corn or rice. Instead, they grow root crops like ube,
gabi, garlic, ginger and onions that have lower destruction risk.
 b. Physical

Resources
These include tangible items that are necessary and
available for a business to function.

Abundance of seafoods in Bataan gives birth to business

opportunities such as fish trading, bagoong, dried fish and smoked
fish (tinapa) making and similar products.
 c. Wildlife

This pertains to flora (plants) and fauna (animals). Wildlife preservation

must also be taken into consideration during opportunity seeking.
Continuous cutting of trees and hunting animals cause imbalance in the
ecosystem.
Paper, as simple as it seems, brings damage to the environment. Trees are being
cut down to be used as material for paper production. Even after use, it emits
carbon dioxide in the atmosphere when burned and releases methane when
rotten. Business enterprise such as Countryside Trading manufactures newsprint
(recycled papers) as an alternative to the usual papers that we use for printing
and writing.
 5 , Te c h n o l o g i c a l E n v i r o n m e n t

One of the nightmares of entrepreneurs is to be left behind by the newest

trends and technological discoveries that will make their own products
obsolete. Thus, technological offerings for the improvement of their own
ventures is unavoidable for them. From upgrading of systems, processes
or new equipment integrated in your product, it will surely be a blast.
Online applications Paymaya or GCash are widely used for cashless payments.
Brought about by the current situation we are in (You might have experienced
washing money you received when you went to a grocery store, right?) and the
ease it brings on transacting with online stores, utilization of these apps is a huge
advantage among businesses nowadays.
Relevant Opportunities
and Threats to a Small-
Scale Food Enterprise
 Factors Opportunities Threats

1. Social
• Pandemic brings • Increase in the • Health of
about awareness demand of entrepreneurs
on healthy living healthier food. might be at risk.
to improve body • Food to be •
resistance. delivered at
• Community doorsteps is
quarantines attractive to the
obliged people to customers.
stay at home.
 Factors Opportunities Threats

2. Political
• Tax exemption to • Exempted • Increased
online sellers amount may be competition since
with earnings not utilized for other the exemption is
exceeding ₱ 250 expenses of the attractive to
000 yearly enterprise other budding
small-scale
enterprises
 Factors Opportunities Threats

3. Economic
• Fast growing • Ease of access to • Increased
community of online market for competition
online sellers purchase of raw
materials
 Factors Opportunities Threats

4. Ecological
• Environmental • Opportunity to • Increased risk in
awareness on the start a “greener” product handling.
use of ecobags advocacy New packaging
and the removal might affect
of plastic straws profitability in
and utensils terms of cost
incurred on the
use of new
packaging
 Factors Opportunities Threats

5. Technological
• Increased usage • Utilizing social • Potential for
of gadgets media platforms customer
to increase disappointments
market reach in and bashing of
terms of netizen’s on poor
marketing and product and
food delivery service quality
services
 “If you fail to
prepare, you are
preparing to fail”
-B e n j a m i n Fr a n k l i n
 Business Plan

formal written description of your

business future by defining your goals,
strategies to meet the goals, and the
timeframe for the achievement of those
goals.
Is it necessary
for you, as an
entrepreneur, to
write your own
As cited by Edralin (2016), the Department of Trade
and Industry through the Bureau of Small and
Medium Enterprise Development mentioned the
following reasons of writing a business plan.

3. Anticipate
1. Minimize or
remove risk of the financial
losing money requirements. 5. Assess actual
performance
against set goals.
4. Organize the
2. Avoid costly
activities
mistakes. 6. Apply for
beforehand. financing from
lending institutions.
 1. Minimize or remove risk
of losing money.

Investment on poorly researched

business that may result to financial
instability should be avoided. You must
see all sides of the venture before letting
go of any resources.
 2. Avoid costly mistakes.

Unplanned decisions may

result to negative outcomes
that may hurt the business.
 3. Anticipate the financial
requirements.

Futuristic view of the increase or

decrease of demand on the given
product/service will prepare you
in meeting business obligations.
 4. Organize the activities
beforehand.
Thinking in advance, you must
look at the near and distant
future. Contingency plans must
be present for anticipated
concerns that may arise.
 5. Assess actual performance
against set goals.

Having a clear goal will help

you achieve your target in
terms of sales, revenues or
even expenses.
Parts of Business Plan
III.
I. Executive
Product/Servi
Summary
ce Plan
V. Financial
IV. Market Plan
II.
Plan
Management
and
Organization
 I. Executive Summary

This part can be found at the beginning of the plan

but is the last to be accomplished since this
synthesizes the whole plan.
This contains a brief introduction and summarizes
everything that is relevant and important to the
prospect business audience.
These are the information needed to guide you:
Description of your proposed
business and business model
Description of the market
opportunity you want to capture or
market problem the business solves
Reasons why this is an attractive
business opportunity
These are the information needed to guide you:
Key distinctions or differentiators of your
business versus competitors
Overview of the sales, marketing, and
operations strategy and plan
Description of your executive planning
timeline
Overview of the projected financials containing
revenues, cost, profits, and assumptions of your
business
 II. Management and
Organization
This part includes all the basic information of your
business.
This also describes the workflow (organizational
structure; the background, experience and role of
each) of your business from the highest position up to
the lowest.
These are the information needed to guide you:
Company Name, Logo, and Address
Vision and Mission Statements
Key Personnel
Organizational Chart
Ownership Capitalization, Compensation, and
Incentives
External Management Support
 III. Product/Service Plan

This part describes the highlight of the product or

service offered to the customers so that they will be
encouraged to patronize your product or service.
It also explains how the products or services will be
accepted and carried by the distribution channels.
These are the information needed to guide you:
Purpose of your Product or Service
Product’s/Service’s Unique Features
Material Requirements and Sources of
Supply
Processing Equipment that will be Used to
Manufacture the Product or Render the Service
These are the information needed to guide you:

Production or Service Process and Controls

Distribution Logistics
Regulatory and Other Compliance Issues
 IV. Market Plan

This includes your business strategies, the target

market, value proposition of your product or services
that may increase the company sales (Chen, 2019).
These are the information needed to guide you:

Market Analysis
Marketing and Sales Strategies
Product or Service Characteristics
Pricing Policy
Sales Projection
 Market Analysis

Market Segmentation
This includes the process of how
you divide the total market into
smaller groups seeking similar
needs and wants
 Market Segmentation Example

Food is a physiological need, but the cravings

depend on each consumer. Chicken wings
offered by The Wing Hub of Limay even come in
different flavors. Consumers who crave for
samgyupsal may turn to Super Boink of Balanga
City while those who want to have a taste of
Vietnamese food would probably go to Loleng’s
Hu Tieu-An in Morong.
 Market Analysis

SWOT Analysis
The characteristic analysis of the
business in relation to internal
and external factors.
SWOT Analysis, on the other
hand, is a popular tool to
evaluate the internal
environment pioneered by
George Albert Smith Jr. and
Ronald Christensen, two
Harvard business professors
(Aduana, 2016). SWOT stands
for Strengths, Weaknesses,
Opportunities and Threats.
 SWOT
Strengths refer to strong attributes or capabilities of the
business that provide great advantage in exploiting the
business opportunity.
Weaknesses are poor attributes or deficiencies that give
disadvantage to the business.
Opportunities are business situations that must be exploited
due to their potential in terms of profit and growth.
Threats are possible external factors that may harm the
business. Both opportunities 18 and threats are outside
origins and are attributes outside the business.
Example of SWOT Analysis
 Marketing and Sales Strategies
These are also known as the
product PUSH. These have three
key characteristics that allow to
perform marketing function of
persuading customers to buy
right away. (Go, 2010)
1. Temporary – Sales promotions are conducted at
short periods creating a sense of urgency on the part
of the customers.
2. Better value – Sales promotions are used to create
short-term differentiation by offering a better product
value.
3. Beneficial – Sales promotions promote growth
sometimes even at artificial level.
 Example
7-11 stores offer promotional sales,
such as “Buy1-Take1” of products at
particular period. At the same time,
they offer Cliqq Rewards to loyal
customers by getting Cliqq points in
every purchase which in turn can be
exchanged to free or discounted items.
 Product/Service Characteristics
This includes value proposition of the
product/service. Value proposition
answers the question, why should your
customers buy from you and not from
other similar businesses? These contain the
convincing reasons that buyers should see
that will make them purchase your
products/services.
 Example
BDO: “We find ways”. Before this
pandemic, while other banks operate
from 8AM-3PM Mondays to Fridays,
BDO offers services until 6PM and even
operates during weekends fulfilling their
promise of “finding ways” for the
customers.
 Pricing Policy
This part specifies the price of the
product/service. It must be noted that
quality and price cannot be separated in
marketing (Aduana, 2016). You must be
careful in setting the price of your
product/service considering the costs of
production, competitors’ pricing, and
customers’ perception.
 Example
Filipinos are generally price conscious. We tend
to check the price tag of a product first before
whether to buy or not to buy a commodity.
“SALE” and “PROMO” tags are consumer
magnets. In cases wherein the prices of the
product cannot be decreased, the entrepreneur
should be able to give emphasis on the benefits
of his/her product to convince the customer of
its value.
 Sales Projection
This is also called sales forecast or the
prediction of the amount of revenue your
company expects to earn at some point in
the future. This shows the quantity of
product sold or service rendered and its
corresponding amount within a given
period.
 V. Financial Plan

This is a document containing your current financial

situation as an entrepreneur and long-term monetary
goals, as well as tactics to attain those objectives. You
may create a financial plan on your own or with the
assistance of someone who is knowledgeable about
handling finances such as certified financial planner.
These are the information needed to guide you:

Start-up costs requirements – These are

expenses that you will be needing during
the course of creating a new business.
Financial projections – These are estimates of
your future profits and expenses.
These are the information needed to guide you:

Break-even analysis – This is a financial tool

that will help you determine at what stage
(or period) your company will start gaining
profit.
Budget – This includes the amount needed for
business operations as well as sources of such
funds (equal shares or through a creditor).
Thank
You