Business Plan: Structure and Key Components

• A business plan serves as a roadmap for entrepreneurs, outlining goals, strategies, target market, financial projections, and operational structure.
• In the Philippines, business plans are crucial for proper planning and business sustainability.
• Business plans help secure funding, aid risk management, guide growth, and enhance operational efficiency.

Key Components of a Business Plan

• Business name and location
• Business concept
• Mission and vision
• Key products or services
• Target market
• Financial summary

Business Description

• The nature of the business, including: legal structure, industry analysis, business location & advantages and competitive advantage are detailed in this section.
• Delicioso Bakeshop operates as a sole proprietorship under Maria Santos.
• The Philippine bakery industry is growing because of increasing demand for healthier and artisanal baked goods.

Market Analysis

• Market Analysis evaluates the market, industry trends, and customer demographics.
• Includes target market segmentation, customer preferences, competitive analysis, and marketing strategies.
• Depicting the percentage of customer segments in a pie chart is useful.

Organizational Structure

• Organizational Structure outlines the management and staff hierarchy.
• A small bakery may have an owner, manager, head baker, and sales staff.
• Business owner
• Key personnel (manager, marketing head, finance officer, etc.)
• Employee roles and responsibilities are included

Product and Service Line

• Details the products or services offered, pricing strategy, and unique selling proposition.
• Delicioso Bakeshop's menu includes Whole Wheat Bread (PHP 80), Sourdough Bread (PHP 120), Pandesal (PHP 50 per 10 pcs) and Specialty Pastries (PHP 60-100 per piece)

Marketing and Sales Strategy

• Marketing and Sales Strategy outlines the business's plan to attract and retain customers.
• This include online and offline marketing strategies, the pricing model, sales promotions, loyalty programs, and distribution channels.
• Social Media Marketing through Facebook and Instagram ads is useful for targeting urban dwellers.

Financial Plan

• Financial Plans include income projections, expense estimates, and funding requirements.
• This encompasses startup costs, revenue projections, break-even analysis, and funding sources.

Appendix

• Supporting documents like permits, licenses, resumes, photos, and registration certificates are included in the Appendix.

Present Business Landscape in the Philippines

• Adaptations to digital transformation, online consumer engagement, and changing consumer preferences are needed.
• E-commerce is booming, so many businesses are moving to online platforms to reach a broader audience.
• Government support for SMEs can be acquired through DTI loans and incentives for startups.
• Eco-friendly and socially responsible businesses are gaining popularity.
• Challenges in inflation and supply chains are affecting profitability due to rising costs of materials and logistics.

Traditional Business Plan

• A business plan with an executive summary, market analysis, company description, organizational structure, product/service details, marketing strategies, and financial projections.
• Often used when applying for bank loans, attracting investors, or ensuring business sustainability.

Lean Startup Business Plan

• A concise plan that focuses on key partnerships, value propositions, reveue streams and cost structures that drive the busines.

One-Page Business Plan

• Key business elements distilled into a single page.

Operational Business Plan

• A plan focusing on internal workflows, managements responsibilities and performance metrics.

Growth/Expansion Business Plan

• A plan with strategies how to enter markets, increase production capacity and or acquire additional funding.

Strategic Business Plan

• emphasizes achieving business goals over several years.

Traditional Business Plan in the Philippines

• A comprehensive document for planning, operating, and growing a business.
• It's useful for bank loans, attracting investors, and ensuring sustainability.

Key Components of a Traditional Business Plan

• This section presents a high-level overview of a business, outlining its mission, goals, and key financial projections.
• Juan's Rice Retailing is a Manila-based startup providing quality, affordable rice; it aims to generate PHP 500,000 in monthly revenue by its second year with a PHP 1 million investment.

Business Description

• Business Description covers nature, structure, industry, and unique selling points.
• Juan's Rice Retailing is a DTI-registered sole proprietorship that sources directly from local farmers.

Market Analysis

• Market Analysis includes a study of the industry as well as the target market, customer behavior and market participants (competitors).
• The Philippine rice retailing sector is industry billion-peso one, catering to over 100 million consumers.
• The target market for rice retailing are urban households, small carinderias, and food businesses.
• Rice retailers compete against supermarkets and sari-sari stores utilizing better direct-to-consumer sales.

Organizational Structure

• Organizational Structure outlines key management roles and duties.
• Juan Dela Cruz manages operations and supplier relations, there are 2 sales staff (customer transactions) and 1 delivery personnel for bulk orders.

Product and Service Line

• Details products/services offered, pricing, and unique selling points.
• Local premium, imported, and organic rice varieties are sold as a product.
• The pricing starts at PHP 40/kg.
• Services include bulk delivery with loyalty rewards.

Marketing and Sales Strategy

• Marketing and Sales Strategy explains customer attraction and retention.
• Online Marketing happens using Facebook and Shopee/Lazada.
• Offline Strategies include discount vouchers and partnerships with carinderias.
• Free rice-tasting booths are promotional events in local markets.

Financial Plan

• Projected revenue: PHP 500,000 per month, break-even expected in 10 months.

Funding Request

• The funding need, with am example of Juan's Rice Retailing seeking PHP 1 million from a bank to cover startup costs and initial expenses is here.

One-Page Business Plan in the Philippines

• QuickBite PH has the mission "To provide fast, affordable, and delicious home-cooked meals to busy professionals and students in Metro Manila through an efficient delivery system."
• They aim to solve the problem that many students/professionals do not have access to budget friendly and home cooked meals.
• Solution is freshly cooked budget friendly meals delivered within 30 minutes delivered via food kiosks or a mobile app.
• Their target market is college students, office employees and working parents.
• Their unique value propisition is freshly cooked homemade meals at competitive prices with a delivery time guarantee.
• Revenues come from meal plans, bulk orders, and direct meal sales (PHP 100).
• Key success metrics include daily meal orders (500 target), customer retention rate and social media engagement (10,00 followers)

Operational Business Plan in the Philippines

• FreshHarvest PH's objective is to provide fresh, locally grown organic vegetables to consumers.
• Founder and CEO manages strategy and partnerships + farm manager supervises production and quality control.
• Example: FreshHarvest PH uses an automated inventory system to: Track levels in real time
• The business hopes to achieve Sales Growth increase revenue by 15% per quarter.

Growth/Expansion Business Plan in the Philippines

• FreshHarvest PH wants to expand to Visayas and Mindanao through franchising, it is currently operating in Metro Manila.
• Warehouses can assist with expansion and reduce costs.
• Expansion Cost: This is a plan that will ensure 90% of new franchisees achieve profitability within 12 months.

Strategic Business Plan in the Philippines

• EcoTech Solutions PH values: Innovation, Sustainability, Customer Commitment, and Integrity.
• Vision Statement: To be the leading provider of renewable energy solutions in Southeast Asia by 2035.

Feasibility Business Plan in the Philippines

• It is essential for ensuring that a business idea is practical and sustainable.
• Example: AquaPure PH targets Households, offices, and restaurants needing safe drinking water.
• Equipment Needed: Water filters, purification tanks, bottling machines, and delivery trucks.
• Operational Plan: Water is processed, tested for quality, bottled, and distributed to customers.
• Business Registration through DTI or SEC is required.
• AquaPure PH is looking to secure DOH sanitary Permits.
• Bank loans and government SME grants can assist with funding along with private investors.