BUSINESS PLAN DISCUSSION

•Title page
•Acknowledgement
•Table of Contents
I. EXECUTIVE SUMMARY
-is a portion of the business plan that summarizes that
highlights the important points of each section of the business plan.

II. THE BUSINESS

A. Industry analysis- this portion describes the business
environments and mentions the industry where the business is
categorized as well as, how this industry is performing in the present
and the projections for the future.
B. THE COMPANY
i. Company name and Tagline
ii. Company Vision and Mission
iii. Company’s Objectives
iv. SWOT Analysis
 SAMPLE FORMAT OF A SWOT ANALYSIS
STRENGTHS OPPORTUNITIES
(the strengths of the business) (the opportunities for the
business)

WEAKNESSES THREATS
(the weaknesses of the (the threats of the business)
business)
v. Location Map
vi. Forms of Business Organizations

Sole Proprietorship- is the simplest form of business organization wherein

it is owned by a single person.

Patrnership- is a form of business organization where two people or

groups share ownership.

Corporation- is a business organization that is legally threated and own

by many people.
III. ORGANIZATIONAL PLAN
A. Manpower Plan
i. Organizational Chart
ii. Personnel Qualifications
iii. Personnel Duties and responsibilities
iv. Personnel Salary Structures
v. Human Resources control policies
 IV. PRODUCTION PLAN
A. Monthly Production Forecast- this is a data of the
monthly production forecast or estimation of your production
for the specific period with the following explanations that will
support your data.
B. Proccess and Design Strategy
i. Process flow
a. Production and service procedures
ii. Plant/Shop layout
C. INPUTS AND MANAGEMENT
i. Raw Materials
ii. Facilities and equipment
iii. Utilities and waste disposal

V. MARKETING PLAN
A. Market Research Analysis
i. Target market- is defined as the particular market segment the
firm wishes to serve.
 a. Demographic profile
b. Psychographic and Behavioral Profile
ii. Estimated Market share

B. The Product
- is an item that can be a good or a service that satisfies consumer
want or need.
Three Components of a product:
- Core Product
- Formal Product
- Augmented Product
 CATEGORIES OF CONSUMER PRODUCTS
Convenience Products- appeal to a very large market.

Shopping Products- target market is a lesser than convenience goods.

Specialty Products- products that carry high price.

Unsought Products- These are the products where the purchase of

consumers is unplanned.
 Product Life cycle
Product extension

INTRO GROWTH
Maturity Decline
-Introduction Stage -Product extension
- Growth stage •Repackaging
- Maturity stage •Discounting
- Decline stage •Re-branding
•Repositioning
 i. Brand names
ii. Product features/ Uniqueness of the product
iii. Product packaging and labeling
iv. Logo description
C. PRICING STRATEGY
i. Pricing structure- Price is the amount of
costumer pays for the product.
 PRICING APPROACHES

Skimming pricing- sets relatively high price for a products at first, then lowers the price over time.

Penetration pricing- sets relatively low initial entry price , often lower than the eventual market
price , to attract new costumers.

Prestige pricing- sets high prices of luxury products to the expectation of a niche class of
costumers who associate higher prices with superior quality.

Price lining- also referred as “ product line pricing”.

Odd-even pricing- it is where price is set based on customers perception of a significant

difference in cost between products priced at whole number value and products priced slightly
below this whole number.
Bundle pricing- companies sell a package or set of goods for lower price than they would
charge if the customer bought all of the them separately.
 a. Introduction or Lunch Stage- explains the pricing strategy/
approach during this phase.
b. Growth and Maturity Stage- in this section, discuss the
pricing strategy/ approach during these stages.

D. Place strategy-refers to providing the product a place

which is convenient for consumer/customer to access or buy.

i. Distribution Channel- it refers to the path or route

through which goods travel to get from the place of
production or manufacture to the finals users.
 CNANNEL STRUCTURE

Product → Customer
-the producer sells the goods and services directly to the customer.

Producer → Retailer → Customer

- Purchase are made by the retailer from the producer and the retailer sells the merchandise to
the customer.
Producer → Wholesaler / Distributor →Customer
-wholesalers/ distributors buy the products from the producer and sell them to the customer.

Producer → Agent/ Broker → Wholesaler or Retailer → Customer

-the agent or the middleman of the company assists with the negotiation between the
producer and the seller and then the seller the product to the customer.
E. Promotion and Sales Strategy- refer to the entire
activities, which communicate the products, brand or
service to the user.

PROMOTIONAL MIX TOOLS

Advertising- is bringing the product or service to the
attention of potential and current customer.
•Print advertising
•Broadcast advertising
•Cellphone and mobile advertising
•Online advertising
Sale Promotions-is the process of persuading a possible
customer to purchase the product.
•Money-off coupons
•Competitions
•Discount vouchers
•Free gifts
•Loyalty cards

Personal Selling-is a promotional method in which the

salesperson uses skills and the techniques for building personal
relationships with another party that result in both parties
obtaining value.
Public Relations-includes ongoing activities to ensure
the overall company has a strong public image.
•Media relations
•Press kits
•Matte release
•Special events
•Sponsorships
•Community relations

Direct Marketing-occurs when the business address

customers through a multitude of channels, including
e-mails, phone , an in person.
i. Advertising Strategy
a. Lunch or Introductory Stage
1. Advertising strategy and mix- discuss here the advertising
strategy and mix being applied by the business during this
stage to attract customers and/or maintain served market.
2. Sample TV Script, Radio Script, Print Add & Website-provide
here the sample script, print Ad, Leaflets, brochures or
website of the business.
 FINANCIAL PLAN
A. Financial Forecasts- is an estimate future financial
for a company or project.
 Three basic elements of the company
-Assets
-Liabilities
-Equity
 THE MAJOR ACCOUNTS
Assets- are resources that an entity owns.

a. Current Assets
- Cash on Hand
- Cash in Bank
- Accounts Receivable
- Allowance for Bad debts
- Notes Receivable
- Inventories
- Prepayments/ prepaid expenses
b. Non- Current assets
- Notes Receivable
- Furniture and Fixtures
- Property, Plant and Equipment (PPE)
- Accumulated depreciation

LIABILITIES- are debts of the business entity to their suppliers, banks, and
other creditor.
a. Current Liabilities
- Accounts Payable
- Notes Payable
- Accrued Liabilities
- Unearned Revenue
b. Non- Current Liabilities
- Notes Payable
- Loan payable

EQUITY-reflects the residual claims of the owners in the assets of the

business after considering all liabilities.
- Owner ‘s Capital
- Owners Drawings
- Losses

REVENUE/ SALES- refer to all the income a business receives in selling its
products or rendering services.
- Sales
- Service Revenue
 COST/ EXPENSES- cost reflects what the business
incurred to buy or manufacture the goods.
- Cost of Sales
- Utility expense
- Salaries expense
- Supplies expense
- Transportation expense
- Depreciation expense
- Bad debts expense
 i. Financial statements- are the
formal financial reports about the company’s
financial performance.

a. Income Statement- this statement

presents the result of the firm’s operation or
performance for a given period of time. It
consist of revenues, cost and expenses.
 SIMPLIFIED FORMAT OF INCOME STATEMENT

Name of the Company

Income statement
For the Period Ended Month 31,2OXX

Revenue/ Sales Pxxx

Less: Costs xx
Gross Profit Pxxx
Less: expenses xx
Net Income/ (loss) Pxxx
 b. Balance Sheet- this statement
shows what the company owns and
owes. The assets must equal the
liabilities plus the equity. It shows the
firm’s financial position with regard to
assets, liabilities, and equity at a point
in time.
 SIMPLIFIED FORMAT OF BALANCE SHEETS STATEMENT

Name of the Company

Balance Sheets
As of Month 31, 20XX

ASSETS
Current Assets Pxxx
Cash on Hand
Account Receivable Pxxx
Allowance for Bad debts xxx Pxxx
Total Current Assets Pxxx

Non-Current Assets
PPE Pxxx
Accumulated depreciation-PPE xxx xxx
Total Current Assets Pxxx
Total Assets Pxxx
LIABILITIES AND EQUITY
Current Liabilities
Account Payable Pxxx
Notes Payable xxx
Total Current Liabilities Pxxx

Non-Current Liabilities
Accounts Payable Pxxx
Notes Payables xxx
Total Non-Current Liabilities Pxxx
Total Liabilities Pxxx

Owner’s Capital Pxxx

Total Liabilities and Equity Pxxx

 c. Statement of Changes in
Owner’s Equity- this statement shows
the changes in the capital or equity as
a result of additional investment, profit,
withdrawal, and losses.
 SIMPLIFIED FORMAT OF CHANGE IN OWN’S EQUITY
STATEMENT

Name of the Company

Statement of Changes in Owner’s Equity
As of Month 31, 20XX
Owner’s Capital Beg. Pxxx
Add: Additional Investment xxx
Add: Profit (less: Loss) xxx
Less: Owner’s Drawings xxx
Owner’s Capital End. Pxxx
 VII. CRITICAL ANALYSIS
I. Potential Problems/ Obstacles and Risks- Identity the
problems and risks related to the industry, to the company,
to the market, and to the employees during the
development up to the growth of the company.
ii. Alternative Courses of Action- discuss the solutions or
the action plan of the company based on the identified
risks and problems