STEPS in

BUSINESS PLANNING
 “Go with you passion,
then money will follow you”
-Mr. Albert Pagdanganan NGTC
Summarize Your Vision
Answering questions about what you hope to accomplish
1
how you plan to reach your goals will guide you in making
subsequent decisions
Develop Your Product or Service
While logic dictates that this step should occur after conducting research, most
businesses start as an idea for a specific product or service. If you already have a product
or service in mind, try developing it further. Having a concrete idea of what you hope to
sell can help kick-start your research, but be prepared to make revisions based on what
you find.

2
 Research the Industry
Understand the industry in which you plan to operate, researching historic performance
and growth forecasts. The Timmons model of opportunity recognition, a popular
technique for evaluating an industry, can help you assess market demand, market size
and margin analysis.

Margin analysis is the analysis or examination

of the additional benefits of a good, input or
activity compared to its additional costs. You
analyze your business's profitability over time

3
Analyze the Market
Define your target market. Use demographic and psychographic information to better
understand what your customers want, how they want to receive it and how you can
best reach them. This information will help you improve your offering, and it forms the
foundation for your marketing plan.

4
Size Up Your Competitors
Determine your direct and indirect competitors and
consider how your product or service compares to
theirs. Note key attributes and success factors,
evaluating your business against the competition, and
then identify your competitive advantage or develop
one using the information obtained in the competitor
analysis.

5
Design Your Company
Choose your company's name, location and business model. Determine how you will sell
your product or service to your customer and how you will protect your competitive
advantage. If you plan on securing a patent, apply for one early because the process can
take more than a year.

Where?
6
Create a Marketing Strategy
Develop a plan for reaching your target customer. It should contain information on
advertising channels, distribution avenues, pricing and product attributes. Include a sales
forecast that will provide the foundation for your business' financial plan.

7
Plan Your Operations
Determine how you will manufacture or deliver your product or service. Decide where
to locate your business and anticipate how your operations will change as demand
grows. Decide how ownership will be distributed and how investors and employees will
be compensated. Begin to build your team.

Delivery of Product
Location of your business
Make a Team

8
Determine Your Financial Needs
Calculate how much must be invested to start your business. You will need to fund
operations until the business can sustain itself. Keep in mind that actual sales are
usually lower, and expenses higher, than forecast. Decide which, if any, outside sources
of funding your business will utilize, and draft a plan for securing those funds.

9
8 most common challenges of
planning a business
1. Getting started
"The hardest part about writing a business plan is
getting it started. Lock yourself in a room, turn off
your phone, and focus." – John Gavigan, managing
director
2. Identifying cash flow and financial projections
"The most difficult part of writing a business plan is the financial section. It is
difficult to project figures on a brand-new business with, possibly, a brand-new
concept. There is no roadmap, no one to follow. The best you can do is find a
similar company and try to gauge what they are making." – Rosemary O'Brien,
owner
3. Knowing your target market
"The hardest but most important piece is getting your target
demographics dialed in properly. You need to know whom you'll
sell to and how big the market is to estimate with some accuracy as
to how many people you can reach and sell your product or service
to." – David Batchelor, founder, DialMyCalls 
4. Being concise
"[One of the top challenges is] keeping it short and sweet. The
more concise and focused a plan is, the more likely business
owners are to achieve the goals they have set for themselves and
their business." – Rick Faulk, CEO, Locus Robotics and 
Quiet Logistics
5. Making it interesting
"The hardest thing about writing a business plan is being able to
tell your story in such a way that people buy into your idea. If you
tell a lousy story, people won't want to invest." – MJ Pedone,
president and founder, Indra Public Relations
6. Establishing workable goals
"Establishing clear, concise and understandable goals – these goals
must also be realistic. When people can't see the vision of the plan,
they won't take action to pursue the plan. In addition, by 
having set goals that align with your plan, you have measurable
targets to track your progress." – Mike Rodriguez, coach and
business consultant
7. Being realistic about business growth
"[You need] to be honest with yourself. Entrepreneurs are, by
nature, dreamers and optimists, and business plans require them
to challenge their assumptions about market opportunity, the
competition, the value of their product, and growth projections.
That is where they get caught up in defining an aspirational but
somewhat realistic business plan." – Vikram Aggarwal, CEO and
founder, EnergySage
8. Proving that your idea is worth it
"A common challenge is being able to express your idea and prospects for growth
in hard numbers. If you seek capital, numbers are of the greatest importance.
Investors and lenders will look at projections and determine the business's
prospects for profitability. They will want a return on investment over time,
whether it be a year, five years or whatever the parties agree on." – Rick Cottrell,
CEO and owner, BizResults.com