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23 Cards in this Set
- Front
- Back
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What is a business plan? |
*Serves as the company's resume *Blueprint for the business |
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Why should you write a business plan? |
1. To test the feasibility of your business idea 2. To give your new business the best possible chance of success 3. To secure funding (loan & bonds) 4. To make business planning manageable & effective 5. To attract investors |
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Focus of a business plan |
Externally, focused plans target goals that are important to external stakeholders, particularly financial stakeholders. Internally, focused business plans target intermediaries goals required to reach the external goals. |
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Categories of a business plan |
1. Business plan for profit - financial goals 2. Marketing plan - changes in perception and branding 3. Project plan - goals of a particular project 4. Business plan for non-profit and government agency - service goals 5. Operational plans - internal organization, working group or department |
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Contents of business plan |
1. Executive summary 2. Project background and history 3. Management and personnel feasibility 4. Production feasibility 5. Financial feasibility 6. Socio economic feasibility 7. Project implementation and timetable |
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Executive summary |
It guides the proponents or investors on the overall feasibility of the proposed project at a glance. Summarizes the major highlight and findings of each major aspect. The conclusion is its focal point. |
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Project background and history |
Narrates the project conceptualization (project proponents, proposed name, type of business proposal/project, project location) and details the events that led to the study. |
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Management and personnel feasibility |
Pinpoints the project's general to specific market feasibility topics. It represents the market & an analysis of past, present and future demand & supply situations for the particular products. |
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Prduction feasibility |
Manufacturing aspects of the product. Details of what the product is and how they will be produced/raised using proposed location, production size (capacity) and lay-out. |
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Financial feasibility |
To know how much the capitalization will be needed to finance the project Who will be the project's financiers. It determines the most adaptable financing scheme in terms of the financiers' terms and conditions of repayment. |
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Socio economic feasibility |
Viewing project's feasibility only from the POV or from the standpoint of the project's proponents/investors. Represents the project's feasibility as to how it will be beneficial to other people and entities. |
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Project implementation and timetable |
Include all activities to be considered during the project's pre investment and pre-operating phase and also the timetable of each of these activities. |
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Comparison between a feasibility study and a business plan |
Feasibility study - conducted BEFORE a decision to proceed. Provides an INVESTIGATIVE function. Business plan - prepared AFTER a decision to proceed. Provides a PLANNING function. |
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MARKET ANALYSIS |
To start a business, the first thing to do is to find out what is the demand for the product by conducting a short market survey. They will then properly understand their customers' needs and how their business should operate. |
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SOURCES OF NEW PRODUCTS/SERVICE |
1. Consumer 2. Existing products and services - improve offerings 3. Distribution channels - manufacturer>DC>consumer; ex. Distributor, wholesaler, retailer 4. Government Patent office (IPO) - they have the list of the products so they can suggest new. 5. Research and development - conduct a research on your market and your customer needs. Results to the development and identification of new and improved product and services. |
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METHODS OF GENERATING NEW PRODUCTS/SERVICES |
FOCUS GROUP BRAINSTORMING PROBLEM INVENTORY ANALYSIS |
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FOCUS GROUP |
a moderator leads a geoup of 8 to 14 participants through an open, in-depth discussion in a directive or non-directive manner. (feedback, comments) (after brainstorming) |
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BRAINSTORMING |
Good ideas emerge when the brainstorming effort focuses on a specific product or market area. Rules: No criticism of ideas or suggestions. Every idea even the wildest, non-feasible is accepted. Freewheeling discussion is encouraged. Quantity of ideas is desired. Combinations and improvements of ideas are encouraged. |
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PROBLEM INVENTORY ANALYSIS |
Consumers are provided with a list of problems and are asked to identify products that have those problems. Results must be carefully evaluated as they may not reflect a new business opportunity. |
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GENERATING NEW PRODUCTS/SERVICES FOR CONVENTIONAL OR INNOVATIVE BUSINESS |
1. Conventional buisness scenario (adoptive) - ways to start: Start a business you are familiar with, due to the needs of existing business contacts, gain business inspiration from your hobby or interest, imported item, explore the possibility of import business. 2. Innovative business scenario - ways to introduce: Gain inspiration from the needs & wants of customer, the problems and issues that you & your peers are bothered to, study the usual or existing solutions & venture in the alternative solution, list down existing products & find out their other uses. |
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Market size, share & value |
Market size - whole population Market share - part of the whole population (your business' consumers) Market value - how much they are willing to pay for a product. |
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Competitors |
Different/same product compete for the same customer group & needs. GENERAL COMPETITORS - same industry TYPE COMPETITORS - DIRECT: same product, customer group & needs INDIRECT: different product, but same customer group & needs BRAND COMPETITORS - "brand name" |
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TOOLS IN CONDUCTING THE INTERNAL ENVIRONMENTAL SCANNING (SWOT ANALYSIS) |
Within the control of the entrepreneur: STRENGTHS - strong attributes or capabilities of the business (advantage) WEAKNESSES - poor attributes or deficiencies (disadvantage) Outside the business environment: OPPORTUNITIES - potential in terms of profit and growth THREATS - provide harm to the business (external - pestel) |
