Business Plan Flashcards
It is a detailed and integrated written document that describes the various activities involved in opening and operating a new entrepreneurial venture
Business Plan
It is prepared using a scientific approach.
Business Plan
It is the road map of the new
business for it provide a clear direction and light to an uncertain business endeavor
Business Plan
A detailed analysis that considers all of the critical aspects of a proposed project in order to determine the likelihood of it succeeding.
Feasibility Study
Forerunner of business plan.
Feasibility Study
the formulation and drafting of the proposed business name is not as simple as it sounds. It is a delicate and important entrepreneurial task. Remember that the name of a business may exist in the market for many year. Careful and in depth planning is of prime importance.
Proposed Name Of The Business
this important that the address of the business is correctly written because all business correspondence are mailed to the business address. Raw materials and other manufacturers are shipped by the by the seller to the designated business address. Nowadays it is also necessary for the business to have an email address to facilitate electronic communication between the business and the customers, suppliers, creditors, and other significant parties.
Address of the business
Classification of business ventures according to FORM:
Sole Proprietorship
Partnership
Corporate
type of business owned and manage by a single person.
Sole Proprietorship
a formal arrangement by two or more parties to manage and operate a business and share its profits.
Partnership
- formed by at least five but not more than fifteen persons. It has a distinct personality separate from the owners.
Corporation
Refers to the person originally formed the corporation
Incorporators
organized under the laws of the Philippines
Domestic Corporation
when they are authorized to issue share of stock Holders
Stock Holders
when they are not authorized to issue share of stocks to stockholders.
Non-Stock Holders
organized under the laws of the foreign country but has the authority to operate in the Philippines
Foreign Corporation
A brief description of the business must include information about the type of the product or service that the business intends to produce or provide. It may include a brief information about the ultimate mission, vision and objectives of the business. The other products or services that the business plans to produce or provide must also be mentioned in the description of the business.
Description of the business
engage in buying and selling of products or goods
Merchandising
provide service to the customer either in professional or non-professional.
Service
engage in buying raw materials and supplies to be processed into finished products.
Manufacturing
the basic entrepreneurial consideration is the place that proposed business in a strategic location that will assure competitive advantage. The following factors should be considered when deciding on the location of the proposed business
Location of the business
The estimated total initial cost of the business venture must be clearly indicate. It should include the projective breakdown or allocation of the total cost, e.g., how much will be for building fixtures, equipment,
supplies, and working capital. This section also presents the source or sources of funds. The initial cost of investment may be provided solely by the owner/s or partly by the owners and creditors. The estimated period to settle the funding source provided by the creditors must be also be mentioned.
Funding Requirement and source
- describe what the company wants to achieve and where it wants to go in the future. It determines the course of direction of the company and identifies which markets, technologies, products, or customers tofocuson.
Vision Statement
describes a company’s reason for its existence. It answers the question the question why the company exist.
Mission Statement
are specific accomplishments or action plans that the company wishes to achieve within a period of time.
Goals
are similar to goals but they are more measurable and are achievable within a short period of time
Objectives
defines the perspective of the business interms of its structure production operation and financial activities that will leadtothe achievement of the VMGO.
Business Model
It must defined how the business gives importance to its relations to with customers creditors suppliers and internal human resources
Business Model
Basically reflect certain innovations that will indicate the competitiveness of the business in the industry.
Business Model
help determine how thebusiness defines its course and the process of accumulatingwealth.Ittells the size of the market and the target market shareof thebusinessand products. The business and product position must beabletoconvince the reader that the proposed business has a competitiveadvantage in the market.
Business Product Positioning
This section describe the methodologies or approaches that will betakenby the business in order
Wealth Improvement approach
this is the last section of executive summary is the descriptionofpartiesthat strongly support the business
Parties in supporting a business
It is a strategic tool that help determine the external andinternal factors affecting the performance of thebusiness
Environmental Analysis
it is the heart of the business
Environmental Analysis
describe the the global business situationtoprovideenough knowledge about the global perspective or horizonof thebusiness.
Global Analysis
tells how the environment forces affect the proposed business and how great their effects are
Societal Analysis
focus mainly on the customer and competitors
Industry Analysis
refers to the gathering, critical
evaluation and utilization of information on events and activities and their relationships with the physical, societal and industry environments.
Environmental Analysis
- a tabular framework of the trends and development in the different forces in the external
environment.
PESTEL Analysis
classifies the various environment forces into their frequency of occurenace and level of effect to the existing or proposed business.
Environmental Force Matrix
otherwise known as the “five forces of
competition,
” was popularized by Michael Porter, a prominent figure instrategyformulation
Forces of Competition Model
