BUSINESS PLAN Flashcards
prepared using a scientific approach in
determining possible business situations considering the different
perspective of people who are interested in the business
business plan
the road map of the new business it is the
road map of the entrepreneur it is the only single written document that
must be prepared before opening a new business or expanding an
existing business. It provides a clear direction to any uncertain business
endeavor.
business plan
defined as a detailed integrated written
document that describes the various activities involved in
opening and operating a new entrepreneurial venture. In
case the business project is relatively large in terms of
financing or funding requirements, the entrepreneur
usually seeks the assistance of consultants.
Business plan
presents the general perspective of
the business. It includes, among others, the following
sections:
1. Proposed name of the business
2. Address of the business
3. Name of the owner or owners
4. Description of the business
5. Location of the business
6. Funding requirement and source
Introduction
in case the consulting team prepares the business
plan for prospective owners or investors, the section
____________ is added as the last
section.
Statement of Confedentiality
- reflect the business identify and images.
- promotes the philosophical values and culture that the business values the most.
- profess the brand identity of the product, and
- attract or influence the target consumers
Proposed Name of the Business
It is important that the address of the business is correctly written because all business correspondence is mailed to the business address. Raw materials and other manufacturing supplies are shipped by the seller to the designated business address.
Address of the Business
The name of the owner must be properly stated. In a sole proprietorship, there is only one owner. In case the venture is a partnership, the names of the partners, including the extent of their liabilities, must be indicated.
For business ventures that will operate as a corporate entity, the names, nationalities, and addresses of the
incorporators must be given. Incorporators are persons
who originally formed the corporation.
Name of the Owner
A brief description of the business must include information about the type of product or service that the business intends to produce or provide. It may include brief information about the ultimate mission, vision, and objectives of the business. The other Product or services that the business plans to produce or provide must also be mentioned in the description of the business.
Description of the Business
There are no rigid rules in the selection of the business location since several variables affect the selection of the business location. The basic entrepreneurial consideration is to place the proposed business in a strategic location that will assure competitive advantage
Location of the Business
Factors in Location Selection:
Proximity to consumers.
Distance from raw materials and labor.
Transportation costs.
Peace and order.
Competitor presence.
Geographic/climatic conditions.
Location of the Business
The estimated total initial costs of the business venture
must be indicated. It should include the projected
breakdown or allocation of the total costs e.g., how
much will be for building, equipment, supplies, and
working capital. This section also presents the source
of funds. The initial costs of the investment may be
provided solely by the owner or owners or partly by the
owner and creditors. The estimated period to settle the
funding source provided by creditors must also be
mentioned.
-Total startup costs (building, equipment, capital).
-Source of funds (owner, loans, etc.).
-Loan repayment terms (if applicable).
Funding Requirement and Source
