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Business Plan Workbook

Section 1
EXECUTIVE SUMMARY
1.1 NAME OF BUSINESS
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1.2 BUSINESS ADDRESS
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1.3. NATURE OF BUSINESS
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1.4. FORM OF BUSINESS
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1.5 NAME OF OWNERS
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1.6 BRIEF DESCRIPTION OF BUSINESS
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1.7 OBJECTIVES
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Section 2

MARKETING PLAN
2.1 THE PRODUCT/SERVICE
Describe the product you want to sell

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2.2 EXISTING MARKETING SITUATION

2.2.1 What are the existing products or services in the market?
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What are the designs? Dimension( size,weight,shape)?
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What are the brands (if any)?
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How are they packaged?
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Who are the users/ consumers of the product?
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Where are they located?

2.2.2 Who are the existing suppliers of the product/service?

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Do they sell directly to the consumer or do they sell to middlemen?

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2.2.3 How do they promote their product/service?What are their promotional
strategies?
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Who do they target in their promotion activities?
_________________________________________________________________________
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How much do they spend for their promotion?
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2.2.4 What are the prices of their existing products/service?
Product description

Price per unit

What do you think of their pricing: high or low or average?

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How often do their prices change?

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2.2.5 What are their selling terms?
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Do they accept credit card?

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If yes, what is the difference between cash and credit?
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How long is the credit term?
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2.3 OWN MARKETING PLAN
2.3.1 PRODUCT/SERVICE
What are the products/services you want to sell?
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What are the characteristics/features of the product/services?

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What will be your brand name?

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How will you present/package your product/service?

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How much will be your packaging cost?

2.3.2 PLACE TO MARKET

Where will you sell your product/service?
]
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To whom will you sell? (Target buyers)

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Will you use middlemen or distributors?

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If yes, will you give commissions or discounts?

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2.3.3 PROMOTIONS
How will you promote and sell the product/service?

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Will you advertise? If yes, what type and how much will you spend for it?
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Will you use signages? What kind and how much will you spend for it?

Will you use posters/displays? What kind and how much will you spend for it?
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Will you use sales agents? if yes, what will be your arrangements/terms with
them? How much will their commission?

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2.3.4 PRICE
How much will you sell the product/service?

_________________________________________________________________________
What pricing method will you use? (Cost-plus, market oriented,competition
oriented,others)
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Will you adopt a wholesale price and retail price? How much?

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If wholesale, what is the minimum quantity for wholesale and how much?

What will be your selling term and condition?

Cash or installment?
_________________________________________________________________________
What will be the price difference between cash and installment?

If installment, what will be the terms?

__________________________________________________________________

2.4 SALES FORECAST

How many units will you sell per day ,per month, per year?
Projected Sales by Month, Sales Volume and Amount
Month
______________

Sales Volume (units)

_________________

Sales Amount (Pesos))

_______________

______________

_________________

_______________

______________

_________________

_______________

______________

_________________

_______________

______________

_________________

_______________

______________

_________________

_______________

How many percent will be sold on a cash basis and how many percent on an
installment basis?

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How many percent will be sold on a wholesale basis and how many on a retail
basis?
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2.5 MARKETING FUNCTIONS
Who will be responsible for marketing?

How much will be his salary or commission?

_________________________________________________________________________
How much will you spend for transportation?

How much will you spend for communication?

_________________________________________________________________________

2.6

MARKETING BUDGET
How much will be the total marketing cost per month? Per year?

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Table 2.13

Marketing Budget
Item
Month
1

Projected Sales
Marketing Expenses:
Promotion
(Specify)
Distribution
(Specify)
Advertising
(Specify)
Selling
(Specify)

Total Marketing Expenses

Marketing Expenses over Sales (%)

Month
2

Month
3

Section 3

PRODUCTION/TECHNICAL PLAN
3.1 What are the technical descriptions of the product or service?Dimensions(size etc)
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What are the materials needed to produce the product/service?

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Are they raw materials or processed or semi-processed materials?
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3.2 What is the Production process? List and describe the step by step process from the
procurement of raw materials up to the finished product stage.
Figure 3.2-A Process Flow Chart (Draw on a separate sheet of paper)
3.3 Production Schedule
How many are you going to produce/deliver daily/monthly/yearly?
Month 1

Month 2

Month 3

Projected Production in Units

Plus: Inventory Ending
Goods available for Sale
Less : Inventory Beginning

3.4 Materials Requirement

What are the direct materials needed for the production process?How many are
needed for each type of direct materials?
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
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Where will you obtain them?
____________________________________________________________________________
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What are the indirect materials needed for the production process? How many are
needed for each type of indirect materials?
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________

Where will you obtain them?

How much will be the cost of materials per unit? Make a schedule of materials
required on your production schedule

Materials
A. Direct Materials
1.
2.
3.
4.
B. Indirect Materials
1.
2.
3.
4.

Cost per unit

Qty Needed /unit

Total Cost

3.5. Production Requirements

3.5.1 Building Structure
Are you building a structure?What kind? Who will make it? How much will be
the cost?
____________________________________________________________________________
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How long is the useful life of the building?
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3.5.2 Machinery and Equipment
What machines and equipment will be used? Where will you obtain them? How
much will each cost?

Table 3.5 Schedule of Useful Life and Depreciation Rate

Cost

Useful Life

Depreciation Rate

Building
Machines/Equipment/Tools

3.6 Utilities Required

Light and Power: How much will it cost?

Water Consumption? How much will it cost?

3.7 LABOR REQUIRED

How many people will you need?
____________________________________________________________________________
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What will be their responsibilities?
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How much will you pay them?
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3.8 Plant Location
Where will you locate your plant? Give address and description of the place.
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Are you going to develop the place? (eg fencing etc) How much will it cost?

3.9 Waste Disposal System

How will you dispose the waste?
3.10 PRODUCTION COST

A. Materials Cost

Cost per Month

B. Direct Labor Cost

C. Overhead Cost
Depreciation Cost
Light and Water
Repairs and Maintenance
REnt
Transportation
Indirect Labor
TOTAL PRODUCTION COST
Divided by Total Quantity produced/mo
Production Cost per unit

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Section 4

ORGANIZATION & MANAGEMENT PLAN

4.1

4.2

Form of Business

Organizational Structure
How will you structure the organization?

Figure 4.2 Organization Chart (Draw on separate sheet of paper)

4.3 Management
Who will run the business?What are the qualifications? What are their
responsibilities? How much will they be paid?

Position

Qualification

REsponsibilities

SAlary

4.4 Pre-operating Activities

What are the preliminary activities to be done before operating the business? List
down the activities to be done with the use of the GANTT Chart.

Figure 4.4

Gantt Chart
Pre-Operating Activities

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Timetable (In ________)

Activities
1

1
0

1
1

1
2

1
3

1
4

1
5

1
6

1
7

1
8

1.
2.
3.
4.
5.
6.
7.
8.
9.

4.5 Pre-Operating Expenses

Pre-Operating Expenses

Amount

4.6 Office Fixed Assets and Equipment

Table 4.6 List of Office Fixed Assets and Equipment, Number Required, Cost
and Depreciation Rate
Item

Number

Cost

Depreciation Rate

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4.7 Administrative Expenses

Items
Salaries
Supplies
Communication
Depreciation of Office Equipments
TOTAL

Cost/month

Section 5

FINANCIAL PLAN
5.1 Capital Requirement (Project Cost)

Table 5.1 Capital Requirement

Investment Item

Amount (Pesos)

Percent

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1. Fixed Assets
1.1
1.2
1.3
1.4

Sub-total

2. Pre-operating Expenses

Sub-total
3. Working Capital
3.1Direct Costs:
Direct Materials
Direct Labor
Overhead
3.2Other operating Expenses
Marketing Expenses
Administrative Expenses

Sub-total
Total

5.2 Profit and Loss Statement

Table 5.2 Projected Profit and Loss Statement (see sample formats).
5.3 Cash Flow Statement

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Table 5.3 Projected Cash Flow Statement (see sample formats: monthly/annual).
5.4 Balance Sheet

Table 5.4 Projected Balance Sheet (see sample format).

Table 5.2 Projected Profit and Loss Statement

Profit and Loss Statement
(For the Year Ended December 31, _________)
( All LC Figures are in Thousands)

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LC
Gross Sales

____________

Less: Returns and Allowances

____________

Net Sales
Less: Cost of Goods Sold

____________

Direct Materials

____________

Direct Labor

____________

Factory Overhead

____________

Gross Profit

____________

Less: Administrative and Selling Expenses

Operating Profit

____________
____________

Less: Interest Expense

Net Profit before Tax
Less: Estimated Income Tax

____________
____________
____________

Net Profit After Tax

============

Cost of Goods Sold for Manufacturing

1. Direct Materials
1.1

Beginning Inventory

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1.2
1.3
1.4
1.5

Add: Purchases
Cost of materials available
Less: Ending inventory
Total cost of materials used for production

2. Direct Labor
3. Factory Overhead
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9

Depreciation
Rental
Indirect labor
Maintenance and repair
Indirect materials (e.g. packaging mat., oil)
Utilities (e.g. electricity, water)
Insurance
Others
Total manufacturing overhead ( 3.1 + up to 3.8 )

4. Total manufacturing cost (1.5 + 2 + 3.9 )

5. Work in process
5.1
5.2
5.3

Work-in process, beginning

Less: Wok-in process, ending
Net Wok-in-process

6. Cost of goods manufactured (4. + 5.3.)

7. Add: Finished goods inventory, beginning
8. Cost of goods available for sale (6. + 7.)
9. Less: Finished goods inventory ending
10. COST OF GOODS SOLD (8. - 9.)

COST OF GOODS SOLD FOR SERVICES

1. Direct Materials (e.g. food (restaurant), fuel (petrol station), paper (photocopying), room
supplies (hotel)
1.1

Beginning materials inventory

1.2

Add: Purchases + Freight-in

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1.3

Total cost of materials available for operation

1.4

Less: Ending materials inventory

1.5

Total cost of materials purchased and used

2. Direct Labor
(e.g. cooks and waiters for restaurant, technicians for repair services, teachers
for language centres, washers for laundry service)
3. Operational Overhead
3.1

Depreciation
- Building
- Equipment
- Furniture & Fixtures
- Vehicles
- Others

3.2

Rental

3.3

Indirect labor

3.4

Maintenance and repair

3.5

Indirect materials (e.g. flowers for hotel, restaurant)

3.6

Utilities (e.g. electricity, water)

3.7

Insurance

3.8

Others ( e.g. transport )

3.9

Total operational overhead (3.1 + up to 3.8)

4. Cost of Services Sold (1.5 + 2. + 3.9)

COST OF GOODS SOLD FOR TRADING

1. Direct Materials
1.1
1.2
1.3
1.4
1.5

Beginning merchandise inventory

Add: purchases + Freight-in
Total cost of merchandise available for sale
Less : Ending inventory
Total cost of merchandise purchased and sold

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2. Direct Labor
3. Operational Overhead
3.1

Depreciation
- Building
- Equipment
- Furniture & fixtures
- Vehicles
- others

3.2

Rental

3.3

Indirect Labor

3.4
3.5
3.6
3.7
3.8
3.9

Maintenance and repair

Indirect materials (e.g. packaging material, stationery)
Utilities (e.g. electricity, water)
Insurance
Others
Total operational overhead

4. COST OF GOODS SOLD ( 1.5. + 2. + 3.9.)

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Table 5.3- A

PROJECTED MONTHLY CASH FLOW STATEMENT

Particulars

Pre-Operating
Period

Month
6
7

Total
8

10

11

12

CASH INFLOW
Equity
Borrowings
Cash Sales
Collection of A/R
Other Income
Total Cash Inflow
CASH OUTFLOW
Pre-operating expenses
Purchase of fixed assets
Direct materials
Direct labor Factory/operational
overheads*
Inventory of raw materials
Inventory of work- in-process
Inventory of finished goods
Marketing expenses
Administrative expenses *
Interest expenses
Loan amortization
Taxes payable
Total Cash Outflow
NET CASH INFLOW (OUTFLOW)
CASH BALANCE BEGINNING
CASH BALANCE ENDING
* Excludes depreciation expenses and amortization of pre-operating expenses which are non-cash items.

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Table 5.3 - B

PROJECTED ANNUAL CASH FLOW STATEMENT

Particulars

Pre-Operating
Period
1

YEAR
3

CASH INFLOW
Equity
Borrowings
Cash Sales
Collection of A/R
Other Income
Total Cash Inflow
CASH OUTFLOW
Pre-operating expenses
Purchase of fixed assets
Direct materials
Direct labor
Factory/operational overheads*
Inventory of raw materials
Inventory of work-in-process
Inventory of finished goods
Marketing expenses
Administrative expenses *
Interest expenses
Loan amortization
Taxes payable
Total Cash Outflow
NET CASH INFLOW (OUTFLOW)
CASH BALANCE BEGINNING
CASH BALANCE ENDING
* Excludes depreciation expenses and amortization of pre-operating expenses which are non-cash items.

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Table

5.4

Projected Balance Sheet

( As of _____________)
Pre-Operating
Period

ASSETS
Current Assets
Cash
Raw Materials Inventory
Work-in-process
Finished Goods Inventory
Accounts Receivable
Prepaid Expenses
Total Current Assets
Fixed Assets
Land
Building
Machinery & Equipment
Vehicles
Furniture & Fixtures
Less: Accum. Depreciation
Net Fixed Assets
Total Fixed Assets
Other Assets
Pre-operating expenses
Goodwill
Patents

TOTAL ASSETS
LIABILITIES
Current Liabilities
Accounts Payable
Loans Payable
Total Current Liabilities
Long-Term Liabilities
Loans Payable
Total Long-term Liabilities

OWNERS EQUITY
Capital Beginning
Accumulated Capital
Add: Net Profit after Tax
Less: Withdrawal/ Dividends
Total Owners Equity

TOTAL LIABILITIES AND EQUITY

YEAR
1

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5.5 Break-even point (BEP)

5.6

Return on Investment (ROI)

5.7 Financial Analysis (Ratio Analysis: Current Ratio, Debt-Equity Ratio; Sensitivity
Analysis)

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