The
The Business
Business Plan
Plan ::
Creating
Creating and
and
Starting
Starting The
The
Venture
Venture
Alex Sanga MVM, MBA
Sjut
Soph
June 2025
Learning Objectives
• To define what the business plan is, who prepares it, who reads it, and
how it is evaluated.
• To understand the scope and value of the business plan to investors,
lenders, employees, suppliers, and customers
• To identify information needs and sources for each critical section of
the business plan.
• To enhance awareness of the ability of the internet as an information
resource and marketing tool.
• To present examples and a step by step explanation of the business
plan.
• To present helpful questions for the entrepreneur at each stage of the
planning process.
• To understand how to monitor the business plan.
Planning as Part of The
Business Operation
• Planning is a process that never ends for a
business.
• It is extremely important in the early stages of any
new venture when the entrepreneur will need to
prepare a preliminary business plan.
• As the venture grow up to mature business,
planning will continue …
• Plan may be short term or long term, strategic or
operational.
What is Business Plan?
• The business plan is a written document prepared
by the entrepreneur that describes all the relevant
internal and external elements and strategies for
starting a new venture.
• It is a integration of functional plans such as
marketing, finance, manufacturing, sales and
human resources.
Who should write the plan?
• The business plan should be prepared by
the entrepreneur.
• The entrepreneur may consult with many
other sources in its preparation, such as
lawyers, accountants, marketing
consultants, and engineers.
Scope and Value of the Business
Plan – Who Reads The Plans?
• The business plan may be read by employees,
investors, bankers, venture capitalists, suppliers,
customers, advisors, and consultants.
• There are three perspectives should be considered
in preparing the plan :
– Perspective of the entrepreneur
– Marketing perspective
– Investor’s perspective
Scope and Value …
• The business plan is valuable to the entrepreneur,
potential investors, or even new personnel, who
are trying to familiarize themselves with the
venture, its goals, and objectives.
– It helps determine the viability of the venture in a
designated market
– It provides guidance to the entrepreneur in organizing
his or her planning activities
– It serves as an important tool in helping to obtain
financing.
How do Potential Lenders and
Investors Evaluate The Plan?
• Four Cs of Credit:
– Characters
– Cash flow
– Collateral
– Equity of Contribution
• Another …
– Marketable
– Payback period
– Risk
– Feasibility, etc
Presenting The Plan
• It is often necessary for an entrepreneur to
orally present the business plan before an
audience of potential investors.
• In this typical forum the entrepreneur
would be expected to provide a short
(perhaps 20-minutes or half-hour)
presentation of the business plan.
Information Needs
• Before committing time and energy to
preparing a business plan, the entrepreneur
should do;
a quick feasibility study of the business concept to
see whether there is any possible barriers to
success.
Information Needs
• The information, obtainable from many sources
should focus
– on marketing (segmenting, targeting, and
positioning),
– finance (list of all possible expenditures, demand
forecast, revenue), and
– production (location, manufacturing operations,
raw materials, equipment, labor skills, space,
overhead) .
• Internet can be a valuable resource.
Outline of a Business Plan
• Introductory Page
– Name and address of business
– Name(s) and address(es) of principal(s)
– Nature of business
– Statement of financing needed
– Statement of confidentially of report
Outline …
• Executive Summary – Three to four pages
summarizing the complete business plan
– What is the business concept or model?
– How is this business concept or model unique?
– Who are the individuals starting this business?
– How will they make money and how much?
Outline …
• The executive summary should define the
decision to be made and the reasons for approval.
• The specific content will be highly dependent on
the core purpose and target audience.
• To get a sense of the difference the purpose and
target audience can make, here are three different
sets of key points for an executive summary –
• one for a loan request,
• one for a start-up seeking venture finance,
• and one for an internal plan.
Outline …
• Environmental and Industry Analysis
– Future outlook and trends
– Analysis of competitors
– Market segmentation
– Industry and market forecasts
• Description of Venture
– Product(s)
– Service(s)
– Size of business
– Office equipment and personnel
– Background of entrepreneurs
Outline …
• Production Plan
– Manufacturing process (amount subcontracted)
– Physical plant
– Machinery and equipment
– Names of suppliers of raw materials
• Operational Plan
– Description of company’s operations
– Flow of orders for goods and/or services
– Technology utilization
Outline …
• Marketing Plan
– Pricing
– Distribution
– Promotion
– Product forecasts
– Controls
• Organizational Plan
– Form of ownership
– Identification of partners or principal shareholders
– Authority of principals
– Management-team background
– Roles and responsibilities of members of organization
Outline …
• Assessment of Risk
– Evaluate weakness of business
– New technologies
– Contingency Plans
• Financial Plan
– Pro forma income statement
– Cash flow projections
– Pro forma balance sheet
– Break-even analysis
– Sources and applications of funds
Outline …
• Appendix (contains backup material)
– Letters
– Market research data
– Leases or contracts
– Price lists from suppliers.
Using and Implementing
The Business Plan
• The business plan is designed to guide the
entrepreneur through the first year of operations.
• Implementation of the strategy contain control
point to ascertain progress and to initiate
contingency plan if necessary.
• Business plan not end up in a drawer somewhere
once the financing has been attained and the
business launched.
Measuring Plan Progress
• Entrepreneur should check the profit and loss
statement, cash flow projections, and information
on inventory, production, quality, sales, collection
of accounts receivable, and disbursements for the
previous month.
– Inventory control
– Production control
– Quality control
– Sales control
– Disbursements
Updating the Plan
• The most effective business plan can become out-
of-date if condition change.
• If the change are likely to affect the business plan,
the entrepreneur should determine what revisions
are needed.
• In this manner, the entrepreneur can maintain
reasonable targets and goals and keep the new
venture on a course that will increase probability
of success.
Why Some Business Plans
Fails?
• Goals set by the entrepreneur are unreasonable.
• Goals are not measurable
• The entrepreneur has not made a total commitment to the
business or to the family.
• The entrepreneur has no experience in the planned
business.
• The entrepreneur has no sense of potential threats or
weaknesses to the business.
• No customer need was established for the proposed
product or service.
1000 kms starts with a single
step
Thank You
