THE BUSINESS PLAN

Chapter 6
 INTRODUCTION
Preparing a business plan is not
easy. It is a well-written, honest-to-
goodness document prepared by the
entrepreneur that will convince the
investor to invest, or it is a tool to sell
your business story to financial
resources and should be recognized.
 ORGANIZING THE
ENTERPRISE, PLANNING
THE ENTERPRISE
 CONCEPT OF A BUSINESS PLAN

“A well-written business plan is one of that

contains all information necessary for the
financing source to make a decision even
without taking the entrepreneur.”
- Anonymous
 AUTHORS HISRICH AND PETERS’
DEFINITION OF A BUSINESS PLAN

It is a written document prepared by

the entrepreneur that describes all the
relevant external and internal element
involved in starting a new venture. It is an
integration of functional plans such as
marketing, finance, manufacturing, and
human resources.
 OTHER DEFINITION OF A BUSINESS
PLAN FROM THE BOOKS OF
ENTREPRENEURSHIP
it is thinking ahead the objectives, strategies, financing, production,
marketing, profit prospects, and growth possibilities.

What to do
How to do it

PLANNING When to do it

What to expect in the future

 PRINCIPLES OF PLANNING
1. Planning must be realistic. It must be based on the available
resources: human, financial and physical resources.
2. Planning must be based on felt need. The objectives of an
entrepreneur should fit the needs of the people in the community.
It can be known through observation, personal interviews, and
questionnaires.
3. Planning must be flexible. Resource needs the economic
condition change. Planning should not be such changes to be
effective and relevant.
4. Planning must start with simple projects.
 STAGES OF BUSINESS PLANNING
(by professor Philip Kotler)
1. Unplanned Stage – at the sight of the business, the owner
manager is busy looking for funds, costumers,
materials, and equipments.
2. Budgeting System Stage – Eventually, the owner-manager realizes
the need to develop and use a budgeting
system.
3. Annual Planning Stage – The owner-manager drafts an annual
plan.
4. Strategic Planning Stage – as the business enterprise becomes
bigger, a long-range is planning.