Lesson 3: The Business Plan Contents (I): Introduction, Executive Summary, and Proponents

Question 1

serves as the “birds-eye view” of your plan.

Answer 1

Business plan introduction

Question 2

It is written at a high level while not going into details.

Answer 2

Business Plan introduction

Question 3

It covers the description of the business, the goals, and why the business is a good venture to start

Answer 3

Business Plan introduction

Question 4

Business Plan Introduction

Two Main Components:

Answer 4

The Business Concept and Model
The Business Goals

Question 5

should have the essence of the business in a short but powerful manner. It emphasizes the value of the product to be offered to the target customers who would most likely buy it.

Answer 5

The Business Concept

Question 6

is a formula on how the business plans to make money out of business.

Answer 6

Business Model

Question 7

Four Areas of Business Modelling

Answer 7

Raising revenue

The cost of the enterprise products and other costs of doing business

Major investments of the enterprise

Financing the investment

Question 8

show the long-term and future prospects of the enterprise.

Answer 8

Business Goals

Question 9

It is composed of the vision, mission, objectives, key results area, and performance indicators.

Answer 9

Business Goals

Question 10

The Business Goals
4 sub topics

Answer 10

KRA - key result area
Goals
Objectives
KPIs- Key Performance Indicator

Question 11

KRA stands for

Answer 11

Key Result Area

Question 12

They are the broad areas in which you are expected to deliver results (e.g. customer service, quality, safety).

Answer 12

KRAs
Key Result Areas

Question 13

are the specific outcomes that you are trying to achieve within each key result area, within a given time period.

Answer 13

Goals

Question 14

are the foundation of your plan and need to be set at the start of the planning process - after all, you need to know your destination in order to a figure out how to get there.

Answer 14

Goals

Question 15

are sub components of a goal.

Answer 15

Objectives

Question 16

For example, to achieve one goal there may be four major pieces of work to be completed. Completion of one of these pieces of work would be an ____.

Answer 16

objective

Question 17

can be set later in the planning process once you have defined all of the tasks to be completed.

Answer 17

Objectives

Question 18

KPI stands for

Answer 18

Key Performance Indicator.

Question 19

are metrics that are used to monitor performance in key areas on a daily, weekly or monthly basis.

Answer 19

KPIs
Key Performance Indicators

Question 20

tell you wherever you want to go;

Answer 20

Goals

Question 21

tell you precisely the way to get there.

Answer 21

objectives

Question 22

will increase your effectiveness;

Answer 22

Goals

Question 23

back your goals, and cause you to be more economical.

Answer 23

objectives

Question 24

are usually represented in words;

Answer 24

Goals

Question 25

usually go together with numbers and specific dates.

Answer 25

objectives

Question 26

Why should you have measurable goals and objectives in your business plan?

Answer 26

Always think of a goal that is measurable. By establishing measurable goals, you'll be able to TRACK YOUR PROGRESS and ACKNOWLEDGE RIGHT AWAY ONCE YOUR EFFORTS ARE GOING OFF TARGET.

Question 27

Example: Writing Goals and Objectives Situationer: You want to establish high-quality, delicious, and visually stunning desserts that cater to the growing demand for unique, customizable, and healthier sweet treats.

Answer 27

KRA 1: Marketing & Brand Awareness Goal: Establish Strong Brand Identity Objectives:  1. Increase brand visibility on digital platforms and attract new followers. 2. Create engaging marketing campaigns and partnerships to position Sweet Delights as a premium brand in the dessert industry. KPIs: 1. Social Media Growth: Increase followers on Instagram, TikTok, and Facebook by 30% within the first year.  2. Brand Engagement Rate: Achieve an engagement rate of 5% or higher on social media posts. 3. Influencer Partnerships: Secure 3 influencer collaborations per quarter to boost brand reach and credibility.

Question 28

summarizes the necessary details of the business plan for its readers.

Answer 28

executive summary

Question 29

It is timesaving for readers, for they are able to get the gist of the business plan.

Answer 29

Executive Summary

Question 30

Contents of the Executive Summary

Answer 30

For startup business, one of the main goals is to PURSUADE BANKS, INVESTORS, or VENTURE CAPITALISTS TO TAKE a POSITION IN YOUR BUSINESS by PROVIDING STARTUP CAPITAL in the TYPE OF DEBT OR EQUITY FUNDING.

Question 31

Contents of the executive summary 9 Subsequent sections in a startup business:

Answer 31

The Business opportunity Taking advantage of the opportunity The target market Business model Marketing and Sales Strategy The competition Financial Analysis Owner/Staff Implementation Plan

Question 32

it describes the need to the target market

Answer 32

business opportunity

Question 33

you need to explain how your business will serve the market.

Answer 33

Taking advantage of the opportunity

Question 34

you need to describe your market based on the analysis that you conducted

Answer 34

The target market

Question 35

you need to describe and think of products or services and justify in what way it will make it appealing to your target market

Answer 35

Business model

Question 36

have a brief outline of the marketing strategy for your products or services that you will offer

Answer 36

Marketing and sales strategy

Question 37

describe your competition and your strategy for getting market share. Also, identify your competitive advantage

Answer 37

The competition

Question 38

summarize the financial statement together with projections for a minimum of three years

Answer 38

Financial analysis

Question 39

Describe the owners and also the key employees and the experience they convey to the venture

Answer 39

Owner/Staff

Question 40

as an entrepreneur, you need to define the schedule for taking your business from the planning stage to its formal operating.

Answer 40

Implementation Plan

Question 41

Remember In writing your executive summary,

Answer 41

you already NEED TO CAPTURE THE AUDIENCE'S ATTENTION IMMEDIATELY so that they are MOTIVATED TO READ the REMAINDER OF THE DOCUMENT.

Question 42

Tip You need to end your business plan’s executive summary with a

Answer 42

STRONG AND CLINCHING CLOSING SENTENCE that will JUSTIFY WHY YOUR PROPOSED BUSINESS is a WINNING ONE.

Question 43

Example: Executive Summary of a Bakery

Answer 43

Johanne’s Bakery (JB) is a starting coffee and cake shop located in San Pedro City, Laguna. JB is expected to catch the interest of its loyal and regular customers with a variety of coffee, pastry, and cake products. The company plans to have a strong market established in the town because of its mild competitive climate and our partner’s experience in the area. JB aims to offer its bread and pastry products at a competitive price to meet the needs and demands of the lower- to middle-income local market area residents and tourists. Because of its variety of product offerings, Johanne’s Bakery will be the no. 1 coffee and bakeshop in the city.

Question 44

What are the 5 things that you need to keep in mind when writing your executive summary?

Answer 44

Focus on providing a summary. Keep your language sturdy and positive. Keep it short. Polish your executive summary. Put yourself in your readers’ place.

Question 45

What are the 5 things that you need to keep in mind when writing your executive summary?

Answer 45

Focus on providing a summary. Keep your language sturdy and positive. Keep it short. Polish your executive summary. Put yourself in your readers’ place.

Question 46

4 types of stakeholders

Answer 46

Resource mobilizers Technology Providers and Applicator Top management Operations and Support Team

Question 47

They are the investors who are willing to take a position within the business. They are the ones who will share in the capital of the business

Answer 47

Resource Mobilizers

Question 48

They are the ones who can think about the technologies that the business needs. They are also the ones who can analyze if the budget is enough to make use of technologies and if there's enough funds that they can use to acquire it.

Answer 48

Technology Providers and Applicator

Question 49

They are the ones who can think about the technologies that the business needs. They are also the ones who can analyze if the budget is enough to make use of technologies and if there's enough funds that they can use to acquire it.

Answer 49

Technology Providers and Applicator

Question 50

These leaders will lead their members. However, having leaders doesn’t mean that other members can’t participate. Because as a team within the business, the suggestions and approval of every individual are extremely necessary.

Answer 50

Top Management

Question 51

These are members that will create the main product. Others will work for the implementation of the business and might operate the institution. There are also members who can work as the advertisers of the business. Others can be the ones who will become sellers, cashiers, and other support staff of the business.

Answer 51

Operations and Support Team

Question 52

These are members that will create the main product. Others will work for the implementation of the business and might operate the institution. There are also members who can work as the advertisers of the business. Others can be the ones who will become sellers, cashiers, and other support staff of the business.

Answer 52

Operations and Support Team

Question 53

Remember Each of the proponents has something to contribute, and they can be divided based on their capabilities, skills, and interests.

Answer 53

True