Developing A Business Plan: Sergio Rafael R. David

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DEVELOPING A

BUSINESS PLAN
SERGIO RAFAEL R. DAVID
BEFORE starting a business
STARTING A BUSINESS INVOLVES PLANNING,
MAKING FINANCIAL DECISIONS AND COMPLETING
A SERIES OF ACTIVITIES.
BEFORE STARTING A BUSINESS YOU SHOULD
KNOW AND MAKE A LIST OF THE FOLLOWING
BEFORE starting a business
1. REASONS YOU ARE 7. YOUR BUSINESS 13. THE LEGAL
STARTING A BUSINESS LOCATION STRUCTURE OF YOUR
8. THE NUMBER OF BUSINESS
2. KIND OF BUSINESS EMPLOYEES YOU NEED
YOU WANT 9. THE AMOUNT OF 14. BUSINESS PLAN
3. PRODUCTS OR MONEY TO GET 15. TYPE OF
STARTED OR IF BANK
SERVICES YOU WILL LOAD IS NEEDED MANAGEMENT AND
PROVIDE 10. TYPES OF ADVERTISING STYLE
4. YOUR TARGET SUPPLIERS YOU NEED 16. THE TAXES AND
CUSTOMER 11. LEAD TIME TO TAKE BUSINESS PERMITS
BEFORE YOUR YOU NEED TO PAY
5. YOUR COMPETITORS PRODUCTS OR
SERVICES ARE 17. PERSONS TO GET
6. YOUR DIFFERENCE AVAILABLE
FROM COMPETITION PROFESSIONAL HELP
12. PRICE OF THE OR ADVICE
PRODUCT COMPARED
LEGAL STRUCTURE
YOU HAVE TO DETERMINE FIRST THE LEGAL
STRUCTURE OF YOUR BUSINESS BEFORE
APPLYING FOR BUSINESS REGISTRATIONS AND
PERMITS. LEGAL STRUCTURE IS ALSO CALLED
OWNERSHIP STRUCTURE. THE TYPE OF
STRUCTURE WILL DEPEND ON THE SIZE AND
TYPE OF THE BUSINESS YOU ARE PLANNING TO
GET INTO.
Types of
business
structures
Sole partnership
It is the simplest business to set up. It has only one
owner. It is not a legal entity, therefore the owner of the
business is personally liable for its debts. You can apply
for a business registration at the department of trade
and industry.
partnership
It is a business where two or more people share
ownership. Each partner contributes to all aspects of
the business, including money, property, labor or skill.
Each partner shares in the profits and losses of the
business. You can apply for a business registration at
the securities and exchange commission.
corporation
It is an independent legal entity owned by people called
shareholders. This means that the corporation itself, not
the shareholders that own it, is legally liable for the
actions and debts the business incurs. You can apply
for a business registration at the securities and
exchange commission.
For all types of business structures, after you have
registered your business, you have to apply to get a
mayor’s/business permit from the city or municipality
where your business is located, a barangay clearance,
and a bureau of internal revenue (bir) tax identification
number (tin). You also have to apply for a social security
system (Sss) certificate.

Mayor’s permit Barangay clearance bir tin Sss certificate


Business plan
A good business plan will guide you in creating, running and
monitoring the company’s progress. You can create a simple
business plan at first and improve it later to a more formal
business plan format. The business plan usually consists of
a business profile, mission and vision, marketing and sales,
location, financing, accounting and employees. You must
determine if you will hire employees or do everything by
yourself initially. You must also decide if you will rent a place
or have a home-based business.
Creating a business plan
Preparatory activity for your business is creating a
business plan. A business plan is a guide or outline
stating your business goals and how to achieve those
goals. It also contains the company profile, background
information about the organization or team and other
information needed to run your business successfully.
Creating a business plan
A good business plan is one that will serve as guide for
tracking a company’s progress. A business plan is also a
tool for attracting banks and private investors to finance a
company as well as encouraging potential employees to join
the team. In addition, a solid business plan will help a
business owner identify potential risks and pitfalls so that he
can address problems early on rather than being caught
unaware. A business plan may be modified and updated as
you run your business.
You can initially draft a simple plan, and then later create a
formal business plan.
Simple business plan
Business name
The business profile
Business description
target market and customers
Growth trends in this business
Product/services, pricing
The vision and the team
Vision
Mission
My work experience related to my intended
business
My personal background and education
credentials
Simple business plan
Marketing and sales
Marketing plan
Advertising and promotion plan
Purchasing and inventory control
The competition
Office location or home-based business
Factors in selecting home-based
Home-based business format
Operating personnel while operating from
home
Location criteria
Financing
Financing strategy
Start-up capital
Sources of financing
Simple business plan
Business organization
Single proprietorship, partnership or
corporation
Professional consultants
Business licenses and permits
Barangay clearance, mayor permits,
healthy/sanitary permit, bir registration, sec or
dti registration, sss registration
communications
Computer
Telephone
Internet, email
Simple business plan
accounting
Accountant/bookkeeper
Accounting software program
Business records, bank account
Monthly and quarterly tax returns
Balance sheet, income statement
Internal controls, auditing
Cash flow planning
Costs and target mark up
Managing employees
Hiring and training policies
Compensation/benefit packages
Business procedures and employees
handbook
formal business plan
this will help you in applying for bank loans and seek
financial help from other financial institutions:
1. Cover page – name of business, address,
telephone, fax no., name of business owner, prepared
by (name who prepared the document), submitted to
(name and address of person or entity receiving the
business plan).
formal business plan
2. executive summary – overview of the business plan
and the results you expect. this is only a summary of
what is covered in detail in the body of the business
plan. this may include the name and description of the
business, the overall goals and statement on how to
achieve those goals. it may also include brief statement
about financial requirements and expected profits and
losses for the first three years of the business.
formal business plan
3. table of contents – outline of the business plan
sections in the order they will appear in the plan
4. main body
- values/mission statement
- business background and current situation
- vision and goals
- products and services
formal business plan
4. main body
- marketing plan/strategy
- operations plan/strategy
- management and human resources strategy and team
- financial plan/projection
- monitoring/controls
- projected income statement and cash flow
- appendices
develop the business model
a business model describes the value an organization offers
its customers and illustrates the capabilities and resources
required to create, market, and deliver this value and to
generate profitable, sustainable revenue streams.
a business plan is a more detailed version of your business
model. a business plan has been traditionally understood as
a physical document. business model may take the form of a
one page visual representations which can either be
produced before a business plan or as part of the same
planning process.
develop the business model
before starting the process of designing the business
model, you have to list and describe the following things
that will be needed later in the process.
1. your key partners
2. the key activities to engage in to deliver your value
proposition
3. your value propositions
develop the business model
4. how to acquire customers
5. how to establish and manage the relationship to a new
customer
6. your target customer
7. the assets or your key resources available to you
8. the fixed costs, variable costs, and cost structure
9. your revenue model
10. your revenue for the next month, quarter and year
branding
branding is a marketing practice of creating a name,
symbol or design that will identify your product and
differentiate your product from other existing products in
the market.
how to develop a brand name
1. decide what you are going to brand
2. do your research
3. position your product or service
4. write your brand definition
5. develop your name, logo and tagline
6. launch your brand
how to develop a brand name
7. sustain a brand quality
8. practice consistency
9. use online tools such as blog, website, portfolio,
twitter account, linkedin profile and others
10. print your logo/brand, on all sales and marketing
materials like calling card, letterhead, paper bag, t-shirt,
cap, mug, delivery van and others

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