Course :

Subject :

MAED TECHNOLOGY AND HOME ECONOMICS

TLE 510 ENTREPRENEURSHIP, COOPERATIVE DEVELOPMENT
AND MANAGEMENT
Term
:
FIRST SEMESTER S.Y. 2014-2015
Professor
:
JANETTE M. CASUCO
Reporter :
LIONEL C. BABALCON
Topics :
MAKING BUSINESS PLAN, AVOIDING PITFALLS IN PLANNING

Making business plan

Planning in plain and simple language is
thinking ahead. In business, it is thing
ahead of objectives, strategies, financing,
production, marketing, profit prospects,
and growth possibilities.

what to do.
how to do it.
when to do it.
what to expect in the future.

Principle of
Planning

Planning must be realistic.

Planning must be based on
felt needs.
Planning must be flexible.
Planning must
simple projects.

start

with

Stages of Business Planning

Unplanned stage.
Budgeting-System stage.
Annual planning stage.
Strategic planning stage.

Components of Business
Planning
SWOT.

Objectives.
Strategies.
Time frame.

Outline of a Business Plan

Cover Sheet: Name of business, names of principals
address and phone number
Business Goals
Strategies
Table of Content
Section One: The Business
A.
B.
C.
D.
E.
F.
G.
H.
I.

Description of Business
Product/Service
Market
Location of Business
Competition
Management
Personal
Application and Expected Effect of Loan (if needed)
Summary

Section Two: Financial Data

A. Sources and Applications of Funding
B. Capital Equipment List
C. Balance Sheet
D. Break-Even Analysis
E. Income Projections (Profits and Loss Statements)
1. Five-year summary
2. Detail by month for first year
3. Detail by quarter for second, third, fourth & fifth years
4. Notes of explanation
F. Cash Flow Projection
1. Detail by month for first year
2. Detail by quarter for second, third, fourth, and fifth years
3. Notes of explanation
G. Deviation Analysis
H. Historical Financial Reports for Existing Business
1. Balance sheets for past five years
2. Income statements for past five years
3. Tax Returns
Section Three: Supporting Documents
Personal resumes, personal balance sheets, cost of budget etc.

Steps in Business Planning

1.Evaluate
your
personal
resources and interest, and
the
resources
of
the
community.
2.Analyze your market.
3.Choose a proper business
location
4.Prepare a financial plan.
5.Prepare a production plan
6.Prepare an organizational

te

P us
la in
n e
n s
in s
g

bus ning
c
ine
ss an el
risk
imi
na
s

Pl
pr an
od n i
uc ng
ti ca
on n

m
in

im

iz
e

co
st
s

of

The Importance of Business

Planning
Pl a
n

e
h
t
f
o
s
s
e
kn
a
e
w
e
h
t
ct
e
t
e
d
n
a
c
g
n
i
n
Plan ess
usin

Avoiding Pitfalls in Planning

1. Avoid glamorizing your business
plan.
2. Avoid jargon or tech-speak.
3. Avoid abbreviations and your own
shortcuts unless these are clearly
explained at the beginning of the
business plan.
4. Avoid grandstanding.
5. Don't look for investment until you
have a business plan.
6. Get to the point.
7. Don't expect your business plan to
be finished quickly.