BUSINESS PLAN WRITING GUIDE
This Business Plan Writing Guide (BP Guide) intends to serve as a guide in preparing the
Enterprise Development Project (EDP) of OFW who wish to avail the Reintegration
Program of OWWA specifically the Enterprise Development & Loan Program . This
Business Plan guides tries to be applicable to as many types of businesses that the
availee may consider. Please note that the approval of your business plan lies on the
evaluator of Landbank of the Philippines.
OWWA RWO XI ǀBusiness Plan GuideǀA. Alban, 2020
BUSINESS PLAN OUTLINE
Preliminaries
1. Cover Page (Annex A)
2. Table of contents (Annex B)
Main body of Paper
1. Executive Summary/Background business/Introduction of entrepreneur
2. Marketing Plan
a. Products/Services
b. Market Analysis (Pricing/Place or location advantage disadvantage)
c. Marketing Programs and strategies (Pricing/Place or location/promotion
and advertisement, etc)
3. Operational Plan
a. Production Process/Trading and Operations
b. Facilities
c. Staffing requirements
d. Production Costs/Operating expenses
4. Organizational Plan (Annex M)
a. Legal Structure of Business
b. Ownership
c. Organizational Structure and Key Management Personnel
d. Pre-operating Activities and costs
e. Fixed Assets
f. Administrative expenses
5. Financial Plan
a. Total Project Cost
b. Projected Income Statements
c. Projected Balance Sheets
d. Projected Cash Flow Statements
e. Financial Analysis
f. Other Financial Assumptions
OWWA RWO XI ǀBusiness Plan GuideǀA. Alban, 2020
Annex A : Cover Page
A THREE(FIVE) YEAR BUSINESS PLAN FOR COMPANY NAME
Name of Company/Business (DTI Registered Name)
Name of Entrepreneur (Proprietor)
Business address
Contact Person (s)
Contact Number(s)
Website of Business (if any)
Email address of Business
FB/Twitter/Instagram Page of Business
OWWA RWO XI ǀBusiness Plan GuideǀA. Alban, 2020
ANNEX B : Table of Contents
This should be brief and is intended to direct the readers to key sections and sub-
sections (up to the 2nd sub-section) only of the paper
OWWA RWO XI ǀBusiness Plan GuideǀA. Alban, 2020
Executive Summary/Business Background/Introduction of entrepreneur
This section should point out the purpose for writing the Business Plan and should
highlight the firm’s distinctive competencies or those factors that will allow it to succeed
and meet set goals. This may then include highlights of the marketing (advantages),
operational, organizational and financial plans.
Introduce your business vision, mission and goals/objectives and tell the reader about
yourself, your business background, skills, interest etc. In this part you can also tell your
financial needs and how you plan to utilize the resources. (Make sure to sell your idea
and yourself)
OWWA RWO XI ǀBusiness Plan GuideǀA. Alban, 2020
I. MARKETING PLAN (4 Ps of Business – Product, Price, Place & Promotion)
Products/Services
This section should at least cover the following:
1. Description. Indicate here details about the product/s or service/s being offered by
the your company. Questions to guide you include: What are you selling? What
customers’ wants/needs are being addressed? What are the benefits for buying
your product? What are its features?
2. Market Readiness. Indicate whether there is an existing market to be served or an
entirely new need/market to be served/created.
3. Proprietary Position. Is there exclusivity to the product (copyright, patent, etc.) or
distribution?
4. Comparative Position.Indicate here how your product compares with those of your
direct competitors in terms of performance and economics. It is suggested that a
table be presented to summarize the comparisons to be discussed which may look
like:
Factors/Bases Product Names of Competing Firms
for Our Other Product Other Product Other Product
Comparison Product 1 2
Factor 1
Factor 2
Market Analysis.
This includes factors that impacts business decisions on pricing (Total Cost + Mark-up/
competitive pricing/ combination of both method) and business positioning (as a
supplier/buyer/new entrants/substitute and consider the completion and how rivalry
affect your business in the market place)
3. Competitive Analysis. This section provides readers information as to how your
company compares with competition using some factors (e.g. business philosophy,
R&D expenditures, no. of new product/services, depth of product line) as bases for
comparison. It is suggested that a table be presented to summarize the
comparisons to be discussed which may look like:
Factors/Bases for Our Firm Competitor 1 Competitor 2
Comparison
OWWA RWO XI ǀBusiness Plan GuideǀA. Alban, 2020
4. Target Market Profile. This should provide a description of the specific target
audience. Information should include their characteristics, benefits sought, demand
& supply conditions, size & expected growth, geographic location. How will specific
customers be identified? What is the market penetration target? Where market
research (or feasibility) was conducted, what percentage of the potential
customers will try? Of those who will try, how many will be buying for the 2nd or 3rd
time? How much do customers buy in currency or number of units? What
percentage of customers will switch should competitors give special offers? Answer
the question: kinsa ang akong customer?
Marketing Programs & Strategies
This section should specify the marketing objectives, strategies and action plans.
Objectives refer to the specific goals that the business wants to attain. This must be
measurable and time bounded. Budgets and timing of expenditures may be
presented to serve as control. Strategies are the means, methods or plans by which the
business sets out to meet its goals. Action plans, on the other hand, specifies how the
strategies are to be executed. Objectives, strategies and action plans are to be
prepared for at least the following specific plans:
1. Products/Services Plan. This should cover such subjects as pricing strategy,
packaging and depth of the product/service line (sizes, shapes and models).
2. Communications Plan. This consists of three separate plans: advertising plan, sales
promotion plan and public relations plan. Advertising may include the (1) creative
strategy (that which contains your selling message to the target audience; the
product/service positioning that needs to be conveyed to the target audience; ),
(2) creative plan (refers to the execution of the creative strategy or the
advertisements themselves), (3) media strategy(defines how you will use your
advertising budget to reach the maximum number of people in your target
audience in the most efficient and effective manner) and (4) media plan (details
the specific media that will be used, during which months, weeks, days or time and
the size and length of your ads and commercials). The estimated awareness and
preference levels may also be indicated. Sales promotion generally refers to
activities that help increase awareness and preference for your product/services
(e.g. trade shows, sampling, coupons, price-offs, refunds).Public relations (PR) plan
includes those that help the company build, improve or strengthen public image.
PR activities are usually categorized under financial PR (e.g. periodical financial
reports, presentations to financial groups and companies); government, business
and community relations; product publicity and internal marketing.
3. Research Plan. Objects must be set for the methods you will use to measure the
effectiveness of your marketing plan, changes in the market and new
product/service development.Where marketing research will be conducted on a
regular basis to assist the firm in meeting its overall objective, this section should be
included. The research agenda should at least include the following: Who is the
OWWA RWO XI ǀBusiness Plan GuideǀA. Alban, 2020
target audience? What do the customers want? What does competition offer
them? What can we offer them? What do you think we offer them?
4. Customer Service Plan. Objectives should be set for the performance of customer
service (e.g. effectiveness ranking within the industry, management involvement,
marketing involvement, knowledge of product/service line, number of telephone
rings before response, costs of handling returns and expertise of technical
personnel).
5. Sales Management Plan. This should project conversion of awareness to trial and
repeat purchases rates. Details should be provided in terms of no. of units and
currency terms. Market share targets or desired market share changes may also be
specified.
A table may be presented to summarize key ideas prior to discussions like the one
below:
Objectives Strategies Action Plans
Objective 1 Strategy 1 for objective 1 Action plans for strategy 1
of objective 1
Strategy 2 for objective 1 Action plans for strategy 2
of objective 1
Objective 2 Strategy 1 for objective 2 Action plans for strategy 1
of objective 2
OWWA RWO XI ǀBusiness Plan GuideǀA. Alban, 2020
II . OPERATIONAL PLAN/PRODUCTION PLAN/MANUFACTURING PLAN (Discuss how the
business operates includes topic about cost, Land & building requirements and all other
fixed assets, raw materials, etc)
Production Process/Trading Operations
This section should at least discuss the following:
1. Process Flow/Description of Operations. A diagram for the process flow and
technical description should be included. For those in trading, you may describe
the trading operations flow. Processes involved in monitoring and controlling for
quality should also be presented here. Waste disposal system should also be
discussed here.
2. Raw Materials. Alist and a description of the materials used in the production
process. Sources (suppliers) for key raw materials have to be identified. Trading
businesses may describe here the product/s that they sell.
Facilities
This section should at least discuss the following:
1. Manufacturing Plant and Other Buildings. A listing and a description should be
provided as to the location and layout. Other buildings may refer to warehouses
and offices. Values and remaining useful life for these facilities must be presented
for existing businesses while details of the estimated costs are to be presented for
new plants, warehouses or offices. Are these covered by insurances? Pictures may
be provided for existing businesses.
2. Equipment. A list and a description of existing equipment (including their utilization
rates and capacities) used in operations and planned additions should be provided.
If there are new equipment that need to be acquired, a short description about the
suppliers must be provided. Are these covered by insurances? What technical or
engineering support are required?
3. Maintenance and Repairs. Where existing manufacturing plants are involved,
maintenance and repairs schedules as well as the estimated costs involved are to
be presented.
Staffing Requirements
This section should identify and explain who are the people important to the venture.
Are there written job descriptions or skills requirements for each (key) positions in your
business – supervisors, employees, laborers? A summary of their responsibilities should
also be presented. Are all (key) positions already filled-up? If not, the recruitment plan
for operations personnel should be presented here. How much will these people be
paid? Are there other benefits that they should be receiving?
Production Costs/Operating Expenses
OWWA RWO XI ǀBusiness Plan GuideǀA. Alban, 2020
This section should at least provide the following:
1. Costs of raw materials.
2. Labor costs.
3. Overhead expenses (all expenses i.e utilities, maintenance, etc).
III. ORGANIZATIONAL PLAN
This section should at least indicate the following:
Legal Structure of Business.Sole proprietorship, partnership, corporation, cooperative?
Ownership.Show how much is owned by each of the owners of the firm.
Organizational Structure and Key Management Personnel.An organizational chart may
be presented. A brief regarding the business experience, affiliations, expertise of key
management personnel should be presented.
Pre-Operating Activities.A GANTT chart of these activities (from inception to start of
operations) may be presented. Short descriptions of each of the activities should be
presented.
TIMEFRAME (months)
Activity AMOUNT
1 2 3 4 5 6 7 8 9 10 11 12
1) Get permit
2) Get financial support
3) Procurement of equipment
4) set-up of kitchen
5) procurement of Raw
Materials
6) production and marketing
Pre-Operating Costs.Should include all expenses (to be) incurred prior to operations.
Fixed Assets.Indicate here all other fixed assets needed for offices.
Administrative Expenses.
OWWA RWO XI ǀBusiness Plan GuideǀA. Alban, 2020
FINANCIAL PLAN (Summary of all financial concern)
This section should at least include the following:
Total Project Cost. This refers to total funding requirements to implement the business.
This also presents how much of total cost requires funding from a financing (bank)
company. A table as shown below may be used for presentation: (see attachment)
Projected Statements of Comprehensive Income (Income Statement)
Projected Statements of Financial Position (Balance Sheet)
Projected Cash Flow Statements
Financial Analysis
1. Profitability.Should at least include return on investment, return on assets, return on
equity, payback period, sales/revenue growth, gross margin, operating margin and
net margin.
2. Efficiency.Should at least include days receivable, days inventory and dayspayable.
3. Liquidity.Should at least include quick ratio, current ratio and working capital ratio.
4. Solvency.Should at least include times interest earned, times fixed charges earned,
debt-equity and debt-asset ratios.
Other Financial Assumptions
OWWA RWO XI ǀBusiness Plan GuideǀA. Alban, 2020
Sample Total Project Cost (Annex A) could be included under executive summary
FOR START-UP PROJECT
TOTAL PROJECT COST
To be Acquired
Existing Total
FIXED ASSET EQUITY LANDBANK
Land 500,000.00 500,000.00
Building 545,000.00 545,000.00
Machinery & Equipment 700,000.00 700,000.00
Vehicle 600,000.00 600,000.00
Total Fixed Asset 500,000.00 1,845,000.00 2,345,000.00
PRE-OPERATING EXPENSE
Power Connection 12,000.00 12,000.00
Water Connection 1,200.00 1,200.00
Telephone Connection 2,000.00 2,000.00
Advertising 3,000.00 3,000.00
Business Permit 12,000.00 12,000.00
Total Pre-Operating Expenses - 30,200.00 - 30,200.00
WORKING CAPITAL
Labor and Materials 112,652.00 400,000.00 512,652.00
ADMINISTRATIVE & SELLING EXPENSES 64,500.00 64,500.00
177,152.00 400,000.00 577,152.00
TOTAL 500,000.00 207,352.00 2,245,000.00 2,952,352.00
Proposed Loan 2,245,000.00 76%
Equity 707,352.00 24%
TOTAL PROJECT COST 2,952,352.00 100%
OWWA RWO XI ǀBusiness Plan GuideǀA. Alban, 2020
