business/company -It helps you to run your business/company with your vision and goal -It serves as a road map to your goal as a company. -It improves your chances to success BUSINESS PLAN FORMAT I. Introduction A. The Business Concept and the Business Model B. The Business Goals: Vision, Mission, Objectives and Performance Target C. The Business Offering and Justification II. Executive Summary III. The Business Proponents: Organizers with their Capabilities and Contributions (Management Team) IV. The Target Customers and the Main Value proportion to the Customer V. The Market A. Market Justification based on the Industry Dynamics B. The Macro Environmental Factors Affecting the Opportunities C. Threats in the Market, the Size, Potential and the Realistic Share of the Market D. Location and Facilities VI. The product and Services Offering VII. The Enterprise Strategy and Enterprise Delivery System: Business Competitiveness VIII. The Financial Forecasts and Expected Returns, Risks, and Contingencies IX. Environmental and Regulatory Compliance X. The Capital structure and Financial Offering: A. Returns and Benefits to Investors B. Financiers C. Business Partners XI. Appendix II. Executive Summary -The executive summary contains everything that is relevant and important to the business. It is the synthesis of the entire plan. -It must contain the major argumentations of the business proponent on why the business will work and succeed. -The executive summary should then introduce the highlight and the good qualities of: -1.the business proponent and their partners; -2. the enterprise organization and its capabilities 3. The technology providers and their enterprise and experience. 4. The suppliers and all the major service provides. It should likewise describe the products/services of the enterprise, their features and attributes, and why they are the right ones to deliver to the customers.
the executive summary should then
describe and justify the Enterprise Strategy and Enterprise delivery System. REMEMBER: Your executive summary is the doorway to your business plan—this is the time to grab your reader’s attention and let them know what you do and why they should read the rest of your business plan or proposal. In a standard business plan with a standard executive summary, the first paragraph of your executive summary should generally include your business’s name, its location, what product or service you sell, and the purpose of your plan. Basically, the first paragraph is an introduction to what you—and your business plan—are all about. Another paragraph should highlight important points, such as projected sales and profits, unit sales, profitability, and keys to success. Include the news you don’t want anyone to miss. This is a good place to put a highlights chart—a bar chart that shows sales, gross margin and profits (before interest and taxes) for the next three years. You should also cite and explain those numbers in the text. III. THE BUSINESS PROPONENTS The third section of the business plan contains information about the business proponents or stakeholder. There four types of stakeholders: 1. Resource mobilizers and financial backers 2. Technology providers and applicators 3. Governance and top management 4. Operating and support team ----If the business plan readers are the resource providers, then they will want to know who else are on board to share the burden of raising money to see the whole thing through. --- If the business plan readers are the technology providers, they will want to know if there will be sufficient funds to pay for the technology. --- If the business plan readers are the governance and top management team, then they will want to know what strategies and performance indicators are being proposed. --- If the business plan readers are the implementing, operating, and support teams, they will want to know what programs, activities, tasks, and resources would be in place. COMPANY AND MANAGEMENT *This section is an overview of who you are. *It should describe the organization of your business, and the key members of the management team, be sure to include summaries of your managers’ backgrounds and experience—these should act like brief curriculum Vitae—and describe their functions with the company. Full-length resumes (curriculum Vitae) should be appended to the plan. SUMMARIZE YOUR MANAGEMENT CHAPTER *The personnel management section of your plan outline will normally include an explanation of: *Your management team *Management philosophy *Backgrounds Make sure you cover the basic information first. That would include how many employees the company has, how many managers, and how many of the managers are founders. -Is your organizational structure sound, with job descriptions and logical responsibilities for all the key members? -Is your team complete, or are there gaps still to be filled? -Make sure you explain how job descriptions work and how the main company functions are divided up. EXPLAIN YOUR ORGANIZATIONAL STRUCTURE *The organizational structure of a company is what you frequently see as an organizational chart, also known as an “org chart.” Use texts to describe the organizational structure in words, without a chart. DEVELOP YOUR PERSONNEL COSTS *The indirect costs include vacation pay, sick pay, insurance benefits, education, and of course, payroll taxes and some other costs. There are different terms for all of this, but most favorite of all is “personnel burden,” which is a cost over and above the direct wages and salaries. IV. The Target Customers and the Main Value proportion to the Customer The Target Customers must be of sufficient size, sufficient paying capacity, and have sufficient interest to purchase the product being offered. The Main Value proposition is the unique selling proposition. --Knowing where the target customer are exactly concentrated, the business plan should then pinpoint what the customers buy, how they can buy, when they can buy, where they buy, and what convinces them to buy. These information should then be used to justify the exact locations and marketing channels to be employed by the enterprise. -EMAIL ACCOUNTS (PAGE/Website) ----- it includes the location, map and schedules. -OPERATION SCHEDULE -OTHER SERVICES OFFERED (wedding, birthday, baptism, etc.- include the price) -Emphasized the benefits, not features -What do you have that no one else has? -Most importantly- how this become an advantage to your customers? V. The Market A. Market Justification based on the Industry Dynamics B. The Macro Environmental Factors Affecting the Opportunities C. Threats in the Market, the Size, Potential and the Realistic Share of the Market D. Location and Facilities A.Market Justification based on the Industry Dynamics *Who are the competing enterprise in the industry and what are their comparative advantages and disadvantages? -LIST AT LEAST FIVE OF YOUR COMPETETITORS IN THE INDUSTRY (COMPETITORS PROFILING) *Name of their business *Who owned the business? *How long are they in the business? *What do they offer? *Advantages and disadvantages B. The Macro Environmental Factors Affecting the Opportunities The SOCIO-CULTURAL ENVIRONMENT includes the demographics and cultural dimensions that govern the relevant entrepreneurial endeavor. The POLITICAL ENVIRONMENT defines the governance system of the country or the local area of business. It includes the law, rules and regulations that govern business practices as well as the permits, approvals, and licenses necessary to operate the business. ECONOMIC ENVIRONMENT Supply and demand forces mainly drive the macro economic environment. They are the same factors that drive the interest and foreign exchange rates that fluctuate with the movement of the market forces. The ECOLOGICAL ENVIRONMENT includes all natural resources and the ecosystem, habitat of men, animals plants and minerals. TECHNOLOGICAL ENVIRONMENT New scientific and technological discoveries, which often leads to the launch and commercialization of new products with superior attitudes or to rendering the old ones obsolete, entrepreneurs nightmares. C. Threats in the Market, the Size, Potential and the Realistic Share of the Market -market threats are external challenges that may negatively impact your company`s goals and sales goals. -the market size is the measurement of the total volume of a given market. What is the total size of your market? ---think of a market size in terms of a pie chart. The entirety of the circle represents the market size. --Market potential is the entire size of the market for a product a specific time. Market potential is usually measured either by the sales value or sales volume. Market potential is based on the estimated number of possible customers who might avail the product or service. - For more realistic number, it would help to narrow down your estimation to the relevant population or target customers in the area where you want to operate your business. (Pie chart) market share represents a company`s allocation in the total market size. (pie chart)--explain What percent share of the market will you have? (This is important only if you think you will be a major factor in the market.) D. Location and Facilities Proposed Location -Map (explain) Is your location important to your customers? If yes, how? *If customers come to your place of business: *Is it convenient? Parking? Interior spaces? Not out of the way? *Is it consistent with your image? *Is it what customers want and expect? *Where is the competition located? Is it better for you to be near them (like car dealers or *fast food restaurants) or distant (like convenience food stores)? -The facilities inside and outside of your business enterprise (explain)