DEVELOPING BUSINESS PLAN •1) What general type of business is this?

What is Business Plan? •2) What is the status of the business?

Start-up, expansion or take-over?
- A formal statement of a set of goals, the
reasons why they are believed •3) What is the business form? Sole
attainable, and the plan for reaching Proprietorship, Partnership, Corporation
those goals. or Limited Liability Company?
Focused of Business Plan •4) What are your products?
- Externally focused plans target goals •5) Who are (will be) your customers?
that are important to external
stakeholders, particularly financial A. Business Description
stakeholders. They typically have
•1) Why will you be successful in this
detailed information about the
business?
organization or team attempting to reach
the goals. •2) What is your experience with this
type of business?
- Internally focused business plans target
intermediate goals required to reach the •3) What will be special or unique about
external goals. They may cover the this business?
development of a new product.
•4) Why will your business be successful?
CATEGORIES OF BUSINESS PLAN
B. Products/Services
1.Business Plan for Profit
•Basic Questions:
- typically focuses on financial goals.
•3) What Position do you have (or want
2. Marketing Plan to have) in the market?
- targets changes in perception and •4) How do your products/services differ
branding as its primary goals. from the competition?
3. Project Plan •5) What makes your products unique
and desirable?
- Describes the goals of a particular
product. •6) Why do (will) customers buy from
you?
4. Business Plan for Non-profit and
government agency C. Marketing Plan
- Tends to focus on service goals Basic components of a Marketing Plan
are:
5. Operational Plans
•What are you selling? (What benefits do
- Describes the goals of an internal
you provide and what position or
organization, working group or
department. •image do you have?)
CONTENTS OF BUSINESS PLAN •· Who wants the things you sell?
(Identify Target Markets)
1. Executive Summary
· How will you reach your Target Markets
- It guides proponents or investors on the
and motivate them to buy?
overall feasibility of the proposed project
at a glance. •(Develop Product, Price, and
Promotional Strategies)
2. Business description and structure.
Product Strategies
- This is where you explain why you’re in
business amdwhat you’re selling. •1) How will products be packaged?
A. Business Description •2) How broad will your product line be?
Basic Questions: •3) What new products will you
introduce?
•4) What Position or Image will you try to your organizational and marketing
develop or reinforce? sections.

Pricing Strategies - Include conservative projections of your

profit and loss statements, balanced
1) What will be your pricing strategies? sheet, and your cash flow for the next
(For example: Premium, Every Day three years.
Low Price, Frequent Sale Prices, Meet CORE COMPETENCIES IN ENTREPRENEURSHIP
Competitor Price, etc.)
1. Economic and Dynamic Activity
2) How will you compare with Entrepreneurship
competition and how will they respond?
is an economic activity because it
3) Why will customers pay your price? involves the creation and operation of
an enterprise with a view to creating
4) What will be your credit policies?
value or wealth by ensuring optimum
5) Is there anything about your business utilization of limited resources.
which insulates you from price
2. Innovative
competition?
The entrepreneur constantly looks for
6) Can you add value and compete on new ideas, thus he needs to be
issues other than price? creative.

Promotional Strategies 3. Profit Potential

1) Who are your Target Markets? The entrepreneur can be

compensated by his profit coming
2) How will you reach your Target from the operation.
Markets? (What Media will you use?)
4. Risk bearing
3) How will you motivate them to buy?
(What Message will you stress?) the entrepreneur needs to gamble
but wise enough to offset the risk.
4) What is the cost and timetable for
implementation of the marketing plan? TYPES OF ENTREPRENEURS

E. Location 1. Innovative Entrepreneurs - They are

those who always make new things by
Basic Questions: thinking of new ideas. They have the
ability to think newer, better and more
1) What is the business address? economical ideas.
2) Is it owned or leased? If leased, what 2. Imitating Entrepreneurs - They are
are the terms? those who don’t create new things but
3) Are renovations or modifications only follow the ideas of other
needed, and what are the costs? entrepreneurs.

4) Describe the property and the 3. Fabian Entrepreneurs - They are

surrounding area. skeptical about changes to be made in
the organization. They don’t initiate but
5) Why is this a good location for your follow only after they are satisfied.
business?
4. Drone Entrepreneurs - They are those
D. Management and Personnel Plan who live on the labor of others. They are
die-hard conservatives even ready to
- Provides bios of your company suffer the loss of business.
executives and managers and explain
how their expertise will help you meet 5. Social Entrepreneurs - They are those
business goals. who initiate changes and drive social
innovation and transformation in the
E. Financial Plan various fields such as education, health,
human rights, environment and
- This is where you provide the numbers
enterprise development.
that back up everything you described in
CAREER OPPORTUNITIES OF ENTREPRENEURSHIP when problems arise.
1. Business Consultant - with the
expertise of in the field of Entrepreneurial heart flame.
entrepreneurship, he can be a very good
source of advices to other entrepreneurs Entrepreneurs are driven by passion;
and would be business men. they are attracted to discover
satisfaction in the act and process of
discovery. Passion is the great desire of
2. Teacher - a graduate of an an entrepreneur to achieve his/her goals.
entrepreneurship can use his knowledge
in teaching.
Entrepreneurial gut game.

3. Researcher - the entrepreneur can be This refers to the ability of the

employed as a researcher by an entrepreneur of being intuitive. This also
enterprise. known as intuition. The gut game also
means confidence in one’s self and the
firm belief that everything you aspire can
4. Sales - the entrepreneurship graduate be reached.
can apply as a salesman.
Sources of Opportunities
There are many ways to discover
5. Business Reporter - the entrepreneur opportunities. Looking at the big picture,
being expert in the field, can be some have noticed the emerging trends
employed as a business reporter. and patterns for business opportunities.
While others are trying to find out their
ENTREPRENEURIAL IDEAS
target market. The following are some
The creation of an entrepreneurial idea sources of opportunities:
leads to the identification of
1. Changes in the environment
entrepreneurial opportunities, which in
Entrepreneurial ideas arise when
turn results in the opening of an
changes happen in the external
entrepreneurial
environment. A person with an
venture.
entrepreneurial driveviews these
Recognize a Potential Market changes positively. External environment
The entrepreneurial process of creating a refers to the physical environment,
new venture is presented in the diagram societal environment, and industry
below. (Nick L. Aduana, Etrepreneurship environment where the business
in Philippine Setting for Senior High operates.
School, 2017, C&E publishing page 46,
Aduana, 2017). 1.1 The Physical environment includes.

a. Climate – the weather conditions.

b. Natural resources – such as minerals,
forests, water, and fertile land that occur
in nature and can be used for economic
Figure 1. The Entrepreneurial Process of gain.
Creating New Venture c. Wildlife – includes all mammals, birds,
Essentials in Entrepreneur’s Opportunity reptiles, fish, etc., that live in the wild.
– Seeking
These are the basic foundation that the
1.2 The Societal environment includes
entrepreneur must have in seeking
the various forces like
opportunities:
a. Political forces – includes all the laws,
rules, and regulations that
Entrepreneurial mind frame. govern business practices as well as the
permits, approvals, and
This allows the entrepreneur to see licenses necessary to operate the
things in a business.
very positive and optimistic way in the b. Economic forces – such as income
midst of difficult situation. Being a risk - level and employment rate.
taker, an entrepreneur can find solutions c. Sociocultural forces – customs,
lifestyles and values that young people to computers.
characterize a society.
d. Technological environment – new
inventions and technology 5. Past experiences
innovations. The expertise and skills developed by a
person who has worked in a particular
field may lead to the opening of a related
1.3 The Industry environment of the business enterprise. For example, an
business includes: accountant who has learned the
a. Competitors appropriate accounting and management
b. Customers skills and techniques in a prominent
c. Creditors accounting firm can start his/her
d. Employees business venture by opening his/her own
e. Government accounting firm.
f. Suppliers
For example, one factor in the physical
environment that can easily change is Forces of Competition Model
the climate. The temperature is very high It is also known as the “five forces of
during summer but very low during the competition”. An industry environment is
rainy season. An individual with a competitive environment. Regardless
entrepreneurial drive can be extremely of what product or services you have,
imaginative and inventive in identifying competition is always present.
opportunities. He/she can venture on a
business that Competition – it is the act or process of
responds to the needs of the people trying to get or win something.For
during summer and rainy season. example, the prices are lower when there
is a competition among the stores.
2. Technological discovery and These are the five forces competing
advancement within the industry:
A person with entrepreneurial interest  Buyers
sees possibility of business opportunities  Potential new entrants
in any new discovery or because of the  Rivalry among existing firms
use of latest technology. For example, an  Substitute products
individual with knowledge in repair and  Supplier
installation of a machine engine
discovers additional engine parts that 1. Buyers
considerably reduce fuel The buyers are the ones that pay cash in
consumption. exchange for your goods and services.
One example is the influence of the price
3. Government’s thrust, programs, and or in the bargaining strategy. The buyer
policies has a strong and magnified bargaining
The priorities, projects, programs, and power. The threat of its bargaining power
policies of the government are also good will be
sources of ideas. For example, the use of less if the following factors are noticed:
firecrackers to celebrate New Year’s Eve a. There are several suppliers available in
is strictly prohibited. People without the market.
entrepreneurial interest will view the b. The buyer has the potential for
ordinance as a plain restriction. However, backward integration.
for an entrepreneur, it is a business c. The cost of switching the supplier cost
opportunity to come up with a new is minimal.
product that will serve as a substitute for d. The product represents a high
firecrackers. percentage of the buyer’s cost.
e. The buyer purchases large portions of
the seller’s product or services.
4. People’s interest
The interest, hobbies, and preferences of
people are rich sources of 2. Potential New Entrants
entrepreneurial ideas, like the increasing A new entrant is defined as companies or
number of Internet Cafés at present businesses that have the ability to
could lead to the strong attachment of penetrate or enter into a particular
industry. For example, in the level of
capital requirements, if the business unstable the intensity of the threat is
requires huge capital, new entrants strong in this kind of the competitive
should decline to join force in the industry. This can be noticed
the business. This gives a threat to the if there is the presence of the following
business. This can be noticed if there is factors:
the presence of the following factors: a. The supplier has the ability for forward
integration
a. Substantial capital requirement b. Suppliers in the industry are few, but
b. Strict government policy. Difficulty in the sales volume is high
accessing distribution channels c. Substitute products are not readily
d. Economies of scale available in the market
e. High cost of product differentiation d. The switching cost is very high
f. High switching cost e. The product or service is unique
3. Rivalry among Existing Firms
Rivalry is a state or situation wherein
business organizations are competing What is Unique Selling Proposition (USP)
with each other in a particular market. and Value Proposition
For example, it depends on the (VP)?
marketing strategy of your competitor,
like giving freebies and special offers. This part allows the entrepreneur to
The intensity of rivalry among existing prepare himself on how to advertise and
firms is characterized to the following sell his product even if it is similar to
factors: others. In this lesson, you will find out the
a. Diversity of rivals answers and understand more about the
b. Number of competing firms market.
c. Characteristics of the products or
services Value Proposition (VP) - is a business or
d. Increased capacity marketing statement that
e. Amount of fixed costs summarizes why a consumer should buy
f. Rate of industry growth a company's product or use its service.
4. Substitute Products This statement is often used to convince
Substitute is one that serves the same a customer to purchase a particular
purpose as another product in the product or service to add a form of value
market. For example, the consumers to their lives. In creating Value
decide to use margarine as a substitute Proposition, entrepreneurs will consider
for butter. In case the price of butter the basic elements:
increases, preferably the consumer will  Target Customer
gradually switch to margarine. A  Needs/opportunity
substitute product can give a big threat  Name of the product
in the industry environment if the  Name of the enterprise/company
following There are many competitors in the
factors are noticed: market who establish superiority over
a. Switching cost is low other entrepreneurs. Entrepreneurs
b. Preferences and tastes of the should think of other alternatives to
customers easily change make their products better. An important
c. Product differentiation is highly aspect in Value Proposition is that it must
noticeable be truthful
and that it should establish credibility to
d. The quality of substitute products the consumers.
dramatically improves Example: Potential value proposition is
most common in small businesses of
e. The price of substitute product is your locality. Aling Charing Sari-Sari
substantially lower Store opens only from 6:00 am to 6:00
pm, but Aling Charing noticed that there
are customers who go to a nearby town
5. Suppliers
to look for a
The Suppliers are the one that provide
convenience store at around 10:00 pm to
something that is needed in business
6:00 am. She believes that this is a great
operations such as office supplies and
opportunity for her store to operate 24/7.
equipment. In an example where
In this example, the proposed value
supplies and services being offered is
proposition is: “Charing sari-sari Store, are valuable for the entrepreneurs. Make
open 24/7”. The business describes a sure that you're focusing on a solution
sari-sari store – a basic retail store. The that is a need, and make sure that you
assurance from this value proposition is are targeting a customer segment that's
because of the phrase “open 24/7”, Aling large enough and cares enough about
Charing’s sari-sari store opens 24/7, your solution so that you can build a
which makes it different from other viable business. We'll talk more about
competitors. determining the size of your target
market in our next lesson. After you
Unique Selling Proposition (USP) – refers understand the value proposition and the
to how you sell your product or services unique selling proposition, now it’s time
to your customer. You will address the to understand the target market,
wants and desires of your customers. As customers requirement and market size.
an entrepreneur, you should think of As you might expect, the market is right
marketing concepts that persuade at the center of our word cloud for this
your target customers. lesson. Understanding your market is
critical in building your business model.
You may ask the following questions in
There are three factors that will
doing this: What do
determine your customers.
the customers want? What brand does
well? What does your competitor sell
well? Some tips for the entrepreneur on A. Target Market
how to create an effective unique selling Market Targeting is a sage in market
proposition to the target customers are: identification process that aims to
 Identify and rank the uniqueness of the determine the buyers with common
product or services character needs and characteristics. Prospect
 Be very Specific customers are a market segment that an
 Keep it Short and Simple (KISS) entrepreneurial venture intends to serve.
In targeting a specific market, it will
exclude people if it will not fit your
As an entrepreneur, present the best
criteria. Rather, target marketing allows
feature of your product or service that is
you to focus your marketing money and
different from other competitors.
brand message on a specific market that
Identifying the unique selling proposition
is more likely to buy from you than other
requires marketing research that you will
markets. Choose a product that is more
learn from the other modules. In
affordable, efficient, and effective to
promoting your products or services,
reach potential clients and generate
make sure that it is very specific and put
business.
details that emphasize the differentiator
against the competitors. Keep it short Commonly used methods for segmenting
and simple and think of a tagline that is the markets are follows.:
easy to remember. Right now, the
proposed unique selling proposition is: 1. Geographic segmentation – the total
“Charing sari-sari store, open 24/7” market is divided according to
geographical location.
Readers get confused between value  Variables to consider
proposition and unique
sellingproposition. The two propositions a. Climate
are used to differentiate the products b. Dominant ethnic group
from competitors. For example, Jollibee is
known to have a Filipino taste burger. c. Culture
d. Density (either rural or urban)
This brand has a unique selling point
because of its tagline “Langhap Sarap” 2. Demographic Segmentation – divided
based on consumers
 Variables to consider
Unique Selling Proposition and Value a. Gender
Proposition are two of the most famous b. Age
tools used to explain why prospect c. Income
customers buy each product and service.
Base on each definition, we learn that d. Occupation
USP and VP are frameworks of each
e. Education
business industry. The two propositions
f. Religion requirements. For example, if the
g. Ethnic group consumer hires a multi cab, then on-time
h. Family size arrival becomes an output requirement.
Customer buys gadgets (phone speaker)
3. Psychological Segmentation – divided the specification like the loudness and
in terms of how customers think and clarity are the output requirements.
believe
 Variables to consider C. Market Size
a. Needs and wants The entrepreneur’s most critical task is
b. Attitudes to calculate the market size, and the
c. Social class potential value that market has for their
d. Personality traits start-up business. Market research will
e. Knowledge and awareness determine the entrepreneurs’ possible
f. Brand concept customers in one locality.
g. Lifestyle
What is Market Size?
4. Behavioral Segmentation – divided
according to customers’ behavior pattern Market size is like a size of the arena
as where the entrepreneurs will play their
they interact with a company. business. It is the approximate number of
 Variables to consider sellers and buyers in a particular market.
a. Perceptions Companies are interested in knowing the
b. Knowledge market size before launching a new
c. Reaction product or service in the area in
d. Benefits determining the market size, the
e. Loyalty entrepreneur will conduct a strategic
f. Responses marketing research from reliable sources
B. Customer Requirements using the following method. The first step
Customer requirements are the specific is to estimate the potential market –
characteristics that the customers need approximate number of customers that
from a product or a service. will buy the product or avail your
services. The second step is to estimate
the customers who probably dislike to
THERE CAN BE TWO TYPES OF CUSTOMER REQUIREMENTS : buy your product or avail the services.
The third step is for the entrepreneur to
estimate the market share, that means
1.Service Requirement plotting and calculating of the
2.Output Requirement competitor’s market share to determine
the portion of the new venture. Market
3.Service Requirement: size becomes the most important factor
if you ever need to raise funding for your
business.
An intangible thing or product that
cannot be touched but the customer can
feel the fulfillment. There are elements in
service requirement like on-time
delivery, service with a smile, easy-
payment etc. It includes all aspects of
how a customer expects to be treated
while purchasing a product and how easy
the buying processgoes.

Output Requirements:

Tangible thing or things that can be seen.

Characteristic specifications that a
consumer expects to be fulfilled in the
product. Costumers will avail services as
aproduct, then various service
requirements can take the form of output