Lesson 2 - Sections of the Business Plan (Chapter 1 - Introduction).pdf

ENT104 Entrepreneurship 1 Lesson 2: Sections of the Business Plan (Chapter 1: Introduction) ❑ What is a Business Plan? ❑ Content of Chapter 1: Introduction 2  At the end of this lesson, students should be able to: Recogniz...

ENT104 Entrepreneurship 1 Lesson 2: Sections of the Business Plan (Chapter 1: Introduction) ❑ What is a Business Plan? ❑ Content of Chapter 1: Introduction 2  At the end of this lesson, students should be able to: Recognize a potential market ✓ Analyze the market need ✓ Determine the possible product/s or service/s that will meet the need. ✓ Screen the proposed solution/s based on viability, profitability, and customer requirements; and Select the best product or service that will meet the market need. 3 What is a business plan? 4  What is a Business Plan? a detailed and integrated written It is a central and detailed statement of what document your business is going to do. The potential investor will require this in applicable to small businesses order to be introduced to the prospects of your business. It identifies your goals and serves as your serves as roadmap of the new business enterprise resume. must be prepared before opening a It helps you allocate resources properly, handle unforeseen complications, and make the right business or expanding an existing business decisions. provides a clear direction to any uncertain describes the various activities involved in business endeavor opening and operating a new entrepreneurial venture A business plan is defined as a detailed and integrated written document that describes the various activities involved in opening 5 and operating a new entrepreneurial venture. A business plan has three primary purposes: 1. To serve as an action plan 2. To serve as a road 3. To serve as a sales This will help an map tool entrepreneur pull apart It is an invaluable tool to A business plan serves as the pieces of starting a help entrepreneur on a tool in attracting business and examine track of its goal. investors. each piece by itself. 6 Characteristics of a Good Business Plan It must contain enough Short and The writing style must give information but not Interesting impact and appealing. Simple excessive. Make sure it is Easy to No typing comprehensible. Understand errors Make sure to proofread. It must be bound into a Use booklet to ensure pages stay Printed and spreadsheets Present information in the right order. Bound and graphs graphically. 7 Chapter 1: Introduction 8  ❑ Proposed Name of Business ❑ Logo of the Business Content Contentofof ❑ Name of the Owner/s Chapter 1: Chapter 1: ❑ Description of Business Product/Service ❑ Address and Location of the Business Introduction Introduction ❑ Vision ❑ Mission 9 Chapter 1: Introduction ❑ reflect the business identity and image, ❑ promote the philosophical values and culture that the business values Proposed Name the most, of Business ❑ profess the brand identity of the product, and ❑ attract or influence the target consumers. 10 Chapter 1: Introduction ❑ a symbol of your company’s identity Logo of the ❑ creates your customers’ first impression of your company Business ❑ convey a message with no words or explanation required 11 Chapter 1: Introduction Types of Logos 1. Font-based logos consist of just the company name in a carefully chosen font that makes it stand out. 2. Literal illustrations, such as a loaf of bread alongside the name of a bakery, simply send a message about what that company does. 3. Abstract symbols, such as Nike’s swoosh, are immediately identified with the company’s brand and image that promotes an athletic way of life. 12 Chapter 1: Introduction ❑ The name of the owner/s must be Name of the properly stated. Owner/s ❑ formal or semi-formal photo/s of the owner/s ❑ basic information of the owner/s 13 Chapter 1: Introduction Forms of Business Organization 1. Sole Proprietorship -These firms are owned by one person, usually the individual who has day-to-day responsibility for running the business. Sole proprietorships own all the assets of the business and the profits generated by it. 2. Partnership - two or more people share ownership of a single business. The Partners should have a legal agreement that sets forth how decisions will be made, profits will be shared, disputes will be resolved, how future partners will be admitted to the partnership, how partners can be bought out, or what steps will be taken to dissolve the partnership when needed. 3. Corporation is considered by law to be a unique entity, separate and apart from those who own it. The owners of a corporation are its shareholders. The shareholders elect a board of directors to oversee the major policies and decisions. The corporation has a life of its own and does not dissolve when ownership changes. 14 Chapter 1: Introduction Description of ❑ information about the type of product or service that the business intends to the Business produce or provide 15 Chapter 1: Introduction Address of the Business - the exact business address Location of the Business - the reason/s for the selection of the location Address and Factors to consider when deciding on the location Location of the of the proposed business: 1. proximity to the target consumers Business 2. distance from the sources of raw materials, labor, and utilities 3. availability and cost of transportation 4. peace and order situation 5. presence of direct competitors 6. the geographic and climatic conditions 16 Chapter 1: Introduction ❑ is what your company aspires to be ❑ is what you want to be doing tomorrow and, in the future ❑ When done right, your vision statement can and should drive Vision decisions and goals in your company. Statement Examples: 1. Disney: “To make people happy” 2. Ford: “To become the world’s leading Consumer Company for automotive products and services.” 3. Avon: “To be the company that best understands and satisfies the product, service and self- fulfillment needs of women—globally. 17 Chapter 1: Introduction ❑ is what your company actually does ❑ keep it short and sweet, and easy to memorize ❑ specific enough that people understand what you do and how you Mission differ from your competitors Examples: Statement 1. Public Broadcasting System (PBS): “To create content that educates, informs and inspires.” 2. Google: “To organize the world’s information and make it universally accessible and useful.” 3. Make-A-Wish: “We grant the wishes of children with life-threatening medical conditions to enrich the human experience with hope, strength and joy.” 18 “A goal without a plan is just a wish.” -Antoine de Saint-Exupéry 19 References: Aduana, N. (2017). Entrepreneurship in Philippine Setting for Senior High School. C & E Publishing, Inc. Areola, E. M., & Siggaoat, J. P. (2017). Entrepreneurship. Pasay City, Philippines: JFS Publishing Services. Gilles, A. C., & Mondejar, R. P. (2006). Guide to Entrepreneurship 2nd Edition. Makati City, Philippines: Sinag-tala Publishers. 20