1. SESSION-2 Business Plan Development
Objectives:
To define what the business plan is, and who prepares it
To understand the scope and value of the business plan to investors, lenders, employees, suppliers, and customers
To identify information needs and sources for each critical section of the business plan
To present examples and a step-by-step explanation of the business plan
To present helpful questions for the entrepreneur at each stage of the planning process

2. What is Business Plan? BP is …..
a written document prepared by the entrepreneur that describes all the relevant external and internal elements involved in starting a new venture
Useful for new venture or for the expansion of the existing business

3. A Good Business Plan is... complete short integrated
prepared for the audience
organized

4. Who should write the plan?
Entrepreneur, with:
Lawyer
Accountant
Financial consultant
Marketing consultant
Engineer, etc.
or: Professional consultant
Source of information:
Gov. Agency
University
Association
Internet
etc.

5. How is BP evaluated? Suppliers: Customers: Lenders/Bank: Investors:
to supply components or finished goods, the number of materials, etc.
Customers:
products, quality, quantity, after sales service, etc.
Lenders/Bank:
the ability to pay back the debt, potential risk, etc. or 4 Cs of credit (character, cash flow, collateral, equity contribution)
Investors:
pay back period, ability to generate income (return), etc.

6. Information needs: Production and operation information needs:
location, manufacturing operations, raw material, equipment, labor skills, space, overhead
Marketing information:
market potential, STPD (Segmentation, Targeting, Positioning, Differentiation)
Financial information needs:
Sales forecasting, capital expenditures, direct operating expenses, etc.

7. Outline of BP: Introductory Page Executive Summary
Environmental and Industry Analysis
Description of Venture
Production Plan
Operational Plan
Marketing Plan
Organizational Plan
Assessment of Risk
Financial Plan
Appendix

8. I. Introductory Page Name and Address
Name of the entrepreneur(s), telp number, address, student ID
Nature of Business
Statement of Financing Needed
Statement of Confidentially Report

10. IV. Description of Venture
Product(s) and or Service(s)
Size of Business
Office Equipment and Personnel
Background of Entrepreneurs

12. Let’s do it! Finalize the business idea, etc.
Finalize the organization structure
Compose Chapter I and IV