Social Entrepreneurship Venture Day Manila 2014

Co-organized by
Peace and Equity Foundation
Ateneo de Manila University – John Gokongwei School of Management
IE Business School

BUSINESS PLAN GUIDELINES

What is a Business Plan?

A business plan is a tool that will help you keep in track and moving in the direction you want to
go. A business plan will also serve to help others understand your vision, including suppliers,
customers, employees, friends and family. Funding sources such as investors, banks, donor
agencies, government agencies, and friends and family will expect a well prepared business
plan on which to base their decisions to contribute funds to your business.

Outline of the Business Plan

1. Opportunity, Vision, Mission

2. Value Proposition
3. SWOT Analysis
4. Market Analysis and Marketing Plan
5. Operations
6. Management
7. Business Model
8. Financing Requirements and Sources of Funds
9. Six Month Startup or Development Plan
10. Financial Projections

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Name of the Social Enterprise: ________________________________________________

Business Plan Summary

1. What is the social issue/problem your social business idea is addressing? How does it
generate social impact and who are your beneficiaries?
2. What is the social business idea that you will use to address the social issue/problem
above? That is:
 What is your product/service?
 Who are your customers/target markets?
 How many are they?

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 
Why will they buy your products/services?

How much are they willing to pay and why?
3. How much income from sales do you expect to make from this social business? (i.e. will
your expected income cover your expected costs?, do you expect to make profits?
How much?)

4. Tell us about yourself – who are you?

 Where are you from?
 Do you have what it takes to turn your idea into a thriving social enterprise?
 What do you hope to get out of the Venture Day Competition?

Description of the Business Plan Components

1. Opportunity, Vision, Mission

Opportunity
Provide a quantitative description of the Opportunity for your enterprise and key characteristics
of the opportunity.

Vision Statement
What is your big vision? What problems are you solving and for whom? Where do you want to
be in the future?

Mission Statement
Create a short mission statement for your enterprise. Your mission statement is a short (one
sentence to one paragraph) inspirational statement of the purpose of your venture. Be sure that
your mission statement is succinct and content rich, and excites your readers.

2. Social Value Proposition

Write a brief statement of how your target customer will benefit from your product/service.
Why should they care?

3. SWOT Analysis

Strengths
What are the internal assets, resources, capabilities and relationships of your enterprise that
will enhance or enable the success of your business?

Weaknesses
What are the gaps in internal knowledge, skills and resources that will hamper or impede the
success of your business?

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Opportunities
What are the external conditions and resources that will enhance or enable the success of your
business?

Threats
What are the external conditions that may hamper or impede the success your business?

4. Market Analysis and Marketing Plan

Market Analysis

Available Market
Estimate the total number of possible direct beneficiaries for your organization, i.e., how many
people could benefit from the value proposition. You can use geographic boundaries (e.g.
continent, nation, state) and demographics (e.g. age, gender, social groups) to segment this
number.

Addressable Market
Identify the segment of the Available Market that you are currently targeting, or could reach
within a few years. This is the group of potential beneficiaries you can reach with the
organizational resources (financial and human) that you have (or plan to have) available.
Identify why these potential beneficiaries will “consume” your product or service, rather than an
alternative.

Target Market Segmentation

Segment, or divide, your customers into different categories. These categories can be anything
that will help you to understand specific characteristics of your beneficiaries, how to reach
them, and what kind of communication and messaging will convince them to buy your product
and/or adopt your services. Some examples of categories are age, education level, income level,
location, size of family, or group affiliation (such as an industry or village organization).

Marketing Plan

Product
Describe how your product or service has been designed and tailored to meet the needs of your
target customer. Describe the key features or attributes of your product/service and
enhancements that make your product/service attractive to your customers.

Price
Explain your pricing strategy and why it will be effective with your target customer.

Promotion
Explain how you will reach your target customers and inform them of the availability of your
product.

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Place
Describe what distribution channel or channels you will utilize in order for your product/service
to be available and accessible your customers. Distribution channel includes direct selling,
stationary or mobile carts, retailers, distributors, wholesalers, e-commerce.

5. Operations

The operations describe how you will run your business and deliver value to your customers. It
describes the processes used to deliver your products and services to the marketplace. Product
ventures may include production, outsourcing, purchasing, quality control, transportation,
warehouse and shipping, customer and technical support, capital expenditures for equipment
and systems, etc. Service ventures may include location, type and size of facility, recruitment
and training of employees, hours of operation, computers, equipment and systems, furnishings,
etc.

6. Management & Human Resource Requirements

Organization Chart
Draw an organization chart for your enterprise with the positions of each key employee.

Management Team
Who are the members of your management team and what are the roles of each member?

Board of Directors
Will you form a Board of Directors? If yes, provide a description and list of members and
roles/responsibilities for your Board of Directors.

7. Business Model

Revenue Drivers

Identify the key income (revenue) “drivers” that “monetize” (fund) your value proposition. It is
useful if at least a portion of the funds that you need to operate or scale will be based on income
for products or services provided (“earned income”) because earned income reduces your
dependence on contributed income (grants and/or fund raising). It is imperative that the earned
income be a by-product of producing the products and/or services for your beneficiaries and not
be an additional defocusing initiative that would distract you from your primary purpose.

Cost Drivers

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Identify the key expense (cost) drivers that are necessary to create the value you describe in your
value proposition, including any fundraising or sales expenses necessary to create your income
streams.

8. Financing Requirements and Sources of Funds

How much capital do you need to start the business? What are the specific uses of the capital
fund needed to start the business?

How much working capital do you need to run the business? What are the specific uses of the
working capital?

The startup capital and working capital combined make up the cost of investment of the
business.

How will you raise the investment capital you need? How much will come from your own
savings? How much will come from the contributions from your family and friends? How much
will an outside investor contribute?

If you win in this competition, how much of the prize money of P200,000 will you use to start or
grow your social business? Please describe how you will allocate the amount to be used for
starting or growing your social business?

9. Six Month Start-up or Development Plan

Identify the key critical steps with the corresponding schedules you need to accomplish within
the next 6 months to get your business up and running.

10. Financial Projections

Prepare the following 3-year summary financial projections of your enterprise:

Statement of Income and Expense

Cash Flow Statement
Balance Sheet

FORMAT OF THE BUSINESS PLAN

Font type and size: Calibri/Ariel/Times Roman 11 points

Line spacing: 1 ½ - 2 spaces
Margins: 1 inch margin all around (top, bottom, left, right)
Maximum pages: not exceeding 20 pages, including attachments

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References:
Writing a Sucessful Business Plan, Stephen Lawrence and Frank Moyes (Deming Center for
Entrepreneurship, Leeds School of Business, University of Colorado at Boulder: 2009).

Global Social Benefit Incubator (GSBI) 2013 Application Requirements (Santa Clara University,
California: 2013).

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Please submit completed Business Plan not later than November 3, 2014 via email to:
The Secretariat
Social Entrepreneurship Venture Day Manila 2014
Email Address: SEVenture@admu.edu.ph