Handout 7 Flashcards
exemplifies the entrepreneur’s way of thinking systematically for every aspect related to its venture. This includes analyzing the business’s present and future, focusing on the
internal factors such as whom the people to employ or work with, where to get resources, the possible sources of funds, and the likes
Internal reason
exemplifies the qualities of the business that will appeal to its consumer. This will help an entrepreneur plan accordingly, answering the questions such as what kind of market the business will serve, the current demands of the people, who are the possible competitors, among others.
External reason
Since there is a direction to follow, businesses with a business plan have coordinated ways and organizations that promote beneficial actions that lead to more market and profit gains, making them see a great future.
More companies stay in business
This will help to analyze one’s business. This will let an entrepreneur determine why customers do not go after the product or service and the things competitors offer to make them better.
An entrepreneur is more certain of what to do
Since business planning is knowing the operations of the venture to be put up, it can determine if the existing resources are enough. This will also
help an entrepreneur provide enough resources by finding skilled-people beneficial to work with
An entrepreneur can provide resources better
A business plan includes even the financial capability of a business to keep running in a span of a year or two. This is a relevant factor of a business plan as this will present how a business must forecast its sales and expenses or costs.
An entrepreneur can understand and manage his finances well
Everyone related to the venture needs to know about the business plan; thus, the people are drawn together in the same direction and become united.
Everyone is aware of the plan
This is the kind of business plan that presents only 10 to 15 pages, usually used by first-timers or pioneers.
Summary business plan
This is the kind of business plan usually used for investor’s opinion. They are usually composed of 25 to 35 pages explaining further details regarding the companies’ operations and plans. This one is like their blueprint
Full business plan
This is the kind of business plan prepared for existing businesses for
internal purposes. This kind handles 40 to 100 pages that include many details regarding the venture and serves as a guide to operational managers
Operational business plan
A business plan must be feasible in the sense that everything that will be
written will be based on the availability of the resources needed to push through with the business.
It must be realistic
As entrepreneurship is defined to exist to produce products or services of value and enough to support the market’s need. It is important for a business plan that its objective or goals were anchored in producing something that will help people and the community they belong to.
It must be based on felt needs
A business plan must adapt to any possible changes responding to the
consumers changing preferences. It must withstand the adjustments of the policies and economic conditions that can be changed in no time.
It must be flexible
In the Philippines, resources are not always available. An entrepreneur needs to have a business plan to reach few markets at first, operated by simple management and existing technologies.
It must start with simple projects
This will serve as your title page. This includes the name, address, and contact details of the company. This also includes the month and year it was established. The name of
the one who prepared it and the number of copies prepared should also be mentioned.
Cover sheet
This explains the purpose of the business, the management, and the
strengths of the company. This section summarizes the objectives and the purpose of why a company wants to be successful.
Executive summary
This includes the details of the page references or the outline of the topics in the business plan
Table of contents
This is the summary description of the business. This will explain the broad overview of the business – the origin, the date, and the purpose of the company’s formation.
The organizational plan
explaining both short- and long-term goals
Mission of the company
its distinction to other companies and uniqueness to the industry
Business model
its distinction to other companies and uniqueness to the industry
Business model
related companies or parenting
company
Strategic relationships
Strengths, Weaknesses, Opportunities,
and Threats – both internal and external) of the
company.
SWOT analysis
This contains the description of
the product the entrepreneur either manufacture or sell, depending on what business they are proposing.
Products or services
