Writing The Business Plan

Entrepreneurship
Handouts 6

 A well written business plan is one that

contains all the information necessary for
the financing source to make decision
even without talking to the entrepreneur.

Anonymous

 A business plan is a written story of

business to be.
A business plan is a document that
convincingly demonstrate the ability
of a business to sell its products or
services to make satisfactory profit
and be attractive to potential backers.

 Why the need for a business plan?

1. To project a general picture of the
business project.
2. To serve as a guide in implementing
the business or project.
3. To serve as major input to investment
decisions or major expenditures.
4. To serve as reference or guide to
policy formulation and development.

5. To serve as a guide for operational

matters.
6. To serve as a reference for bank loan
or financing purposes.
7. To determine or estimate the detailed
technical and financial requirements.
8. To serve as an overall guide for the
proponent or entrepreneur.

 Rules to observed in writing a business

plan:
1. Make it neat.
-. Appearance is important and it can
reflect the personality of the maker.
Make it simple and avail of latest
technology in the market.
2. Make it grammatically correct.
- Be sure to have the final version of the
write up corrected or edited by

3. Make it honest.
- Do not exaggerate or lie. Tell or write
exactly as it is. Financial sources are
looking for integrity and honesty.
Everyone admires a person who can
overcome mistakes or is above
adversity. Be sure to support your
assumptions.

4. Write in laymans language.

- Communicate in simple language and
not in technical jargon, unless it is
really called for. Take note that finance
people are more concerned with
financial
viability
and
technical
soundness.

 A winning business plan should have

the following attributes:
1. It must be arranged properly.
2. It must be of right length and have
the right appearance.
3. It must give a sense of what the
founders and the company expect to
accomplish in the immediate period
and in the future.

4. It must explain in quantitative and

qualitative terms the benefits to the
user.
5. It must present hard evidence of the
marketability of the product or service.
6. It must justify financially the means
chosen to sell the product or service.
7. It must explain and justify the level of
product development that has been
achieved.

8. It must portray management as a

team of experienced people with the
complementary business skills.
9. It must contain believable and
verifiable market as well as financial
projections, with the key data
explained and documented under
assumptions.
10. It must be easily and concisely
explainable in a well-orchestrated oral

 The principle of due diligence:

Due diligence is the detailed evaluation
of the business plan.

Who should prepare the plan?

The business plan has to be prepared by
the entrepreneur himself as the
proponent of the business.

Why

It is not only because the entrepreneur is

the business proponent requesting for
a financing source but is also
necessary for the entrepreneur to be
directly involved in doing the business
plan because of the fact that the
business plan itself is an operational
guide in running the business if it
pushes through.

 Entrepreneurship An Introduction by Donald

F. Kuratco
Entrepreneurship by Feliciano R. Fajardo
Contemporary Entrepreneurship by
Norberto A. Orcullo Jr.
Management for Filipinos (Principles and
Applications) by Conrado E. Inigo Jr.
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