ENTREPRENEURSHIP Module 4: Planning a Business Lesson 2: Types of Business Plan

1. Module 4: PLANNING A BUSINESS
LESSON 2
TYPES OF
BUSINESS PLAN
Mr. CARLO JUSTINO J. LUNA
Angeles City National Trade School

2. WHAT IS THE LESSON ABOUT?
This lesson deals with the
different types of business plan.

3. At the end of the lesson, you should be
able to:
a. enumerate the components of a
business plan; and
b. determine and describe the different
types of business plan
WHAT WILL YOU LEARN?

4.  A business plan is a formal
statement of business goals, reasons
they are attainable, and plans for
reaching them.
 It may also contain background
information about the organization
or team attempting to reach those
goals.
BUSINESS PLAN

5. C
WORDS TO STUDY
O M P O N E N T
is a constituent part of the business plan

6. F
WORDS TO STUDY
E A S I B I L I T Y
S T U D Y
is an analysis and evaluation of a
proposed project to determine its
profitability

7. M
WORDS TO STUDY
A R K E T I N G
deals with the selling and buying
activities of the business

8. P
WORDS TO STUDY
R O J E C T
deals with the introduction statement of
the problem
S U M M A R Y

9. After having learned about
the IMPORTANCE of
business planning, you
must KNOW THE
DIFFERENT TYPES of
business plan.

10. 1. Feasibility Study
2. Concept Paper
3. Business Plan
4. Project Proposal
TYPES

11. FEASIBILITY
STUDY

12.  It is created in order to minimize risk
and to ascertain the viability of a
project.
 It is not merely an investigation but a
frame work on how the operation of a
business project shall be accomplished.
 It is used to determine the potential
success of a proposed business venture
FEASIBILITY STUDY

13. FEASIBILITY STUDY
Will it work? When?
Why?
Where?
How long?
How much?

14. A feasibility study has a PROJECT
SUMMARY which deals with the:
1. Introductory statement of the
problem
2. Business name
3. Business logo
4. Business location
5. Descriptive definition of the problem

15. A feasibility study contains five major
components, namely:
a) Marketing study
b) Technical study
c) Management study
d) Financial study
e) Social desirability
COMPONENTS OF FEASIBILITY STUDY

16. a. MARKETING STUDY
The sufficient demands for the product
as well as the competitive position of
the firm in the industry must be
determined.
COMPONENTS OF FEASIBILITY STUDY

17. b. TECHNICAL STUDY
In this study, you must consider the
manufacturing process, plant size,
production schedule, machinery, plant
location and layout structure,
raw materials, utilities and
waste disposal.
COMPONENTS OF FEASIBILITY STUDY

18. c. MANAGEMENT STUDY
This involves on how the project shall
be managed such as the business
organization including the organization
chart and function of each unit
management personnel,
skills and numbers of
labor required.
COMPONENTS OF FEASIBILITY STUDY

19. d. FINANCIAL STUDY
You should include the assessment of
total capital requirements break-even
outputs, sales and prices, amount of
sales required to earn a
certain amount of profit and
the cash payback period.
COMPONENTS OF FEASIBILITY STUDY

20. e. SOCIAL DESIRABILITY
This is measured by economic benefits
to the people living in the community
and its vicinities.
COMPONENTS OF FEASIBILITY STUDY

21. CONCEPT
PAPER

22.  It is a written plan for a business on
how it will be managed.
 It is a tool to represent a certain
venture anticipating its future.
CONCEPT PAPER

23. The different parts of the concept paper
are the following:
a) Introduction
b) Objectives
c) Rationale
d) Terms and conditions
e) Recommendations
PARTS OF CONCEPT PAPER

24. a. INTRODUCTION
This is the part that discusses the
significant details of the product/service
and why the product/service is needed
by the community.
PARTS OF CONCEPT PAPER

25. b. OBJECTIVES
This part gives the details of the
business both specific and general.
PARTS OF CONCEPT PAPER

26. c. RATIONALE
This part focuses on the advantages of
putting a certain business.
PARTS OF CONCEPT PAPER

27. d. TERMS & CONDITIONS
In this part, specific agreement from
particular to general things are
clarified.
PARTS OF CONCEPT PAPER

28. e. RECOMMENDATIONS
This part is very important because it
helps to improve the project in the
future.
PARTS OF CONCEPT PAPER

29.  A concept paper is a document written
to convince potential funders to sponsor
a product, program or service.
 Concept papers vary in format and
specifics depending on the organization,
but are generally concise documents
containing information, statistics and
persuasive arguments.
HOW TO WRITE A CONCEPT PAPER

30. STEPS:
1. Acknowledge the role of the sponsoring
organization.
Demonstrate your knowledge of the
private or public organization by
summarizing the nature of its involvement
in the project.
For example, if the funders are dedicated to
advancing literacy in developing nations,
acknowledge their successful history in this area.

31. 1. Acknowledge the role of the sponsoring
organization.

32. STEPS:
2. Describe your team or organization.
Explain the core objective of your project.
For example, you may be an instructional software
company that uses software programs to teach
reading skills to disenfranchised populations.
Clearly convey your position as it relates to the
goals of the funding organization.

33. 2. Describe your team or organization.

34. STEPS:
3. Identify the problem.
Funders read your concept paper because
they have a shared interest in the
problem. Describe the core issue. Explain
the problem in enough detail to convey
your background and expertise with the
issue. If necessary, include data to
demonstrate the extent of the problem.

35. 3. Identify the problem.

36. STEPS:
4. Include an assessment of previously
applied methods.
This may be a report of your past
successes with a similar project. Or it may
be a reference to a history of successes
experienced by various organizations who
have applied your specific solution to the
problem.

37. 4. Include an assessment of previously
applied methods.

38. STEPS:
5. Explain how you will meet the need.
Describe the product, service or program.
Be clear and concise. Use language that
the reader will easily understand. Avoid
using technical language for a non-
technical audience.

39. 5. Explain how you will meet the need.

40. STEPS:
6. Outline your intended objective.
Your solution to the problem may save
money, advance learning or prevent health
issues. Include quantitative details, such
as the number of people who will benefit,
how much time will be saved or the
amount of profit that will be generated.

41. 6. Outline your intended objective.

42. STEPS:
7. List the resources necessary to offer
the services.
This may include a list of materials to
build a product or the type of personnel
required to provide the services. A detailed
list will demonstrate your grasp of the
project's needs and your readiness to
provide the product or service.

43. 7. List the resources necessary to offer the
services.

44. STEPS:
8. Establish a time line for delivery of
services.
Explain how long it will take to build the
product, deliver the service or manage the
project. The time line should be both
realistic and efficient.

45. 8. Establish a time line for delivery of
services.

46. STEPS:
9. Specify the amount of funds you are
requesting.
If possible, research the amount of money
that the funding organization has
available to stay within its budget. Asking
for an amount that exceeds the available
funds may result in an immediate
dismissal of your program, project or
service.

47. 9. Specify the amount of funds you are
requesting.

48. STEPS:
10. Summarize the concept paper by
describing the outcome.
Close with a few sentences to ensure the
sponsoring organization that an
investment in your team or organization
will meet objectives and solve the specific
problem.

49. 10. Summarize the concept paper by
describing the outcome.

50. STEPS:
11. Include your contact information.
List your name, address, website, phone
number and email address.

51. 11. Include your contact information.

52. BUSINESS
PLAN

53. A business plan describes the nature of
the business, the sales and marketing
strategy, the financial background,
containing a projected profit and loss
statement
BUSINESS PLAN

54. a) The environment
b) Behavior of the product
c) Location of the business
d) Organizational plan
e) Production plan
f) Financial plan
COMPONENTS OF BUSINESS PLAN

55. a. THE ENVIRONMENT
The needs of the people in the
community should be identified.
COMPONENTS OF BUSINESS PLAN

56. b. BEHAVIOR OF THE PRODUCT
You should know the market trends,
product demand in the community, the
resources, quantity and quality goods in
buying.
COMPONENTS OF BUSINESS PLAN

57. c. LOCATION OF THE BUSINESS
You should consider the place where
customers prefer to buy.
COMPONENTS OF BUSINESS PLAN

58. d. ORGANIZATIONAL PLAN
The needed workers in the business
must be listed in organizational chart.
COMPONENTS OF BUSINESS PLAN

59. e. PRODUCTION PLAN
This involves the manpower, money,
machinery, materials and methods to be
able to produce the desired output based
on anticipated profit.
COMPONENTS OF BUSINESS PLAN

60. f. FINANCIAL PLAN
You, as an entrepreneur, need to
determine the fiscal needs of the
business and the sources of needed
funds.
COMPONENTS OF BUSINESS PLAN

61. PROJECT
PROPOSAL

62. This is the initial
document that converts an
idea or policy into the
details of a potential
project.
PROJECT PROPOSAL

63. a) Executive Summary
b) Justification
c) Procedure
d) Objectives
e) Project Organization &
Management
f) Budget
PARTS OF A BUSINESS PROPOSAL

64. a. EXECUTIVE SUMMARY
The overview of the proposal from
beginning to end should be stated in the
project proposal.
PARTS OF A BUSINESS PROPOSAL

65. b. JUSTIFICATION
This emphasizes the need of the
proposal.
PARTS OF A BUSINESS PROPOSAL

66. c. PROCEDURE
The steps are being explained where to
start and to end.
PARTS OF A BUSINESS PROPOSAL

67. d. OBJECTIVES
The goals or targets of the business are
defined.
PARTS OF A BUSINESS PROPOSAL

68. e. PROJECT ORGANIZATION and
MANAGEMENT
The manpower and function of each are
clearly stated.
PARTS OF A BUSINESS PROPOSAL

69. f. BUDGET
You should determine the source for the
input and output, the profits and the
loss of the business.
PARTS OF A BUSINESS PROPOSAL

70. LET’S APPLY
WHAT YOU
HAVE LEARNED

71. Directions: Think of a service
type of business which you feel
is a good venture to invest on.
APPLICATION

72. PART 1: Make your own concept paper to
support your business ideas and plans.
Title of your concept paper:
Introduction:
Objectives:
Rationale:
Terms and conditions:
Recommendations:

73. PART 2: Using your data in the concept
paper, conceptualize a Business Plan. Fill
in the data regarding the Components of a
Business Plan.
Environment:
Location of the business:
Behavior of the product:
Organizational plan:
Financial plan: