How to draw up a BUSINESS PLAN

Prepared by: Ramon A. Kahulugan

Two different concepts

1. Business Planning - the process you undertake to develop, plan and review your business on an ongoing basis.
2. Business Plan - a document you may draw up for a specific purpose at a specific point in time.

Reasons for drawing up a business plan might include:

• You want to review your initial business plan.
• You want to use a business plan to explain your business concept to a potential partner.
• You want to convince a financial institution that lending your business money will be a good investment for them.

Parts of business Plan

1. Summary
2. Marketing Plan

• Products
• Location
• Target market
• Price of product
• Sales projection
• Promotion and marketing strategy
• Marketing cost allocation

3. Production Plan

• Production process
• Plant, building, equipment, cost
• Plant production and storage facility
• Raw materials supply and cost
• Labor requirement
• Factory overhead

4. Organization and management plan

• Structure
• Administration and personnel
• Pre-operating activities
• Ofiice fixed assets, equipment, fixtures
• Admin cost

5. Finance plan and analysis

• Plant installation and operation capital outlay
• Business office capital outlay
• Product manufacturing cost
• Admin operation cost
• Pre-operating cost
• Capital outlay summary
• Income statement projection
• Cash position after each year
• Financial viability

6. Business Process Planning overview


The Business Process Planning model works like this:

• Market Research: Research your markets.
• Competitive Advantage: Identify your Competitive Advantage.
• Unique Selling Proposition: Develop your Unique Selling Proposition.
• Critical Success Factors: Develop Critical Success Factors to achieve your Competitive Advantage.

• Key Activities: Develop your Key Activities to focus your actions.
• Action Plan: Identify Tasks, develop an Action Plan and check how you're going.
• Analyse and check: Prepare cash flows, profit and loss reports, budgets, benchmark reports etc, analyse them and check you're going to plan..