Entrepreneurship Subject for Senior High School Students; ABM Strand; This chapter talks about the Planning of the Enterprise specifically the Making of Business Plan and highlighted explanation each section of the Business Plan.

2. The Development of the Business Plan:
Planning the Enterprise
Opportunity Seeking, Screening, and
Seizing
Getting to know the Market
Let the Market Know You Better
The right Product for the Right Market

3. Chapter 1: Planning the Enterprise
What is a Business Plan for?
- to guide them throughout the process
- different business plans are prepared for different
purposes.

4. A Business plan serves many master:
First, it serves the entrepreneur who must set a
navigational course.
Second, it serves investors and cautious financiers.
Third, it serves the managers and staff of the
organization so that they will know the strategies
and programs of the enterprise.

5. Business Concept and the Business
Model- A business concept contains the essence of the
enterprise in a concise but powerful.
- It stresses the value of the product offering to the
target customers who would likely buy it.
- The product concept must then be translated into
a business model. A business model is a formula
on how the enterprise exactly plans to make
money out of the business.

6. Here are four areas of moneymaking which the
business model must address:
1. How will the business revenue? What critical factors will
cause the revenues to materialize?
2. What will be the costs of the enterprise products and
other costs of doing business? How will these costs be
managed to ensure comfortable profits? What critical
factors will drive the costs? How can these factors be
controlled?

7. 3. What will be the major investments of the
enterprise? Why will these investments give the
enterprise a competitive edge?
4. How will the enterprise finance the investments?
How will the enterprise fund its growth?

8. Business Goals: Vision, Mission, Objectives,
and Performance Target
- The business goals show the future and long-term
prospects of the enterprise. It is composed of the
vision, mission, objectives, key results areas, and
performance indicators of the enterprise.

9. Executive Summary
- The executive summary contains everything that is
relevant and important to business audience.
- It is the synthesis of the entire plan.
- It must contain the major implementations of the
business proponent on why the business will work and
succeed.
- It should provide the business plan audience all the
arguments on why they should participate in the
business venture.

10. The executive summary should then introduce and
highlight the good qualities of:
1. the business proponents and their partners;
2. the enterprise organization and its capabilities;
3. the technology providers and their expertise and
experience; and
4. the suppliers and all the major service providers.
- The Executive Summary should then proceed to discuss
and justify the Enterprise Strategy and Enterprise
Delivery System.

11. a. The Enterprise Strategy - builds and develops the game plan
for attaining competitiveness.
b. The Enterprise Delivery System – is the entire process of
converting input (resource) into output and these output into
outcomes.
 Investment requirements - should be presented along with the
summaries of the projected income statements, balance sheets,
cash flows, and funds flow, and their analyses and conclusions.
- yields and returns, along with risks
and contingency measures, should round up this section.

12. The Executive Summary should also contain a section on
the environmental and regulatory compliance of the
proposed business, as well as the more proactive
programs to become a more responsible corporate
citizen.
Finally, the Executive Summary should present the capital
structure of the proposed business and show how this
structure will respond to the investment programs and
financial forecasts of the enterprise.

13. The Business Proponents
Contains information about the business
proponents or stakeholders. There are four types of
stakeholders:
1. Resource mobilizers and financial backers
2. Technology providers and applicators
3. Governance and top management
4. Operating and support team

14.  If the business plan readers are the resource providers, then they will
want to know who else are on board to share the burden of raising
money to see the whole thing through.
 If the business plan readers are the technology providers, they will want
to know if there will be sufficient funds to pay for the technology.
 If the business plan readers are the governance and top management
team, then they will want to know what strategies and performance
indicators are being proposed.
 If the business plan readers are the implementing, operating, and
support teams, they will want to know what programs, activities, tasks,
and resources would be in place.

15. Target Customers and the Main
Value Proposition- It must be very precise about the target audience
or target customers.
Target Customers- must be sufficient size,
sufficient paying capacity, and sufficient interest to
purchase the products being offered by the
enterprise.
Value Proposition- is the unique selling
proposition of the enterprise.

16.  The business plan needs to pinpoint what the:
a. customer buy
b. how they buy
c. when they buy
d. where they buy
e. what convinces them to buy
These information should then be used to justify the
locations and marketing channels to be employed by the
enterprise.

17. Market Demand and Supply, Industry Dynamics,
and Macro Environmental Factors
 the business proponent should examine all the
opportunities in this bigger market in order to
determine what exactly influences this market.
 the business plan should the determine the major
environmental factors that influence this market
demand and supply.

18. Macro Environment includes the:
Social Environment- the demographics and cultural
dimensions that govern the relevant entrepreneurial
behavior. The structure, social status, and dynamics of the
population at large, as well as the people’s beliefs, tastes,
mores, customs, and traditions dictate the major
parameters of market behavior.
Political Environment- defines the governance system
of the country or the local area of business. It includes all
the laws, rules, and regulations on allowable and
disallowable business practices.

19. Economic Environment- is mainly driven by supply and
demand forces. It is the same factor that drives the interest
foreign exchange rates to fluctuate with the movement of the
market forces.
Ecological Environment- includes all natural resources and the
ecosystem that defines the habitat of man, animals, plants,
minerals.
Technological Environment- makes or breaks competing
participants in any industry. New scientific and technological
discoveries often lead to the launch and commercialization of
new products with superior attributes or to rendering the old
ones obsolete.

20. Product / Service Offering: Description,
Evolution, and Justification
 the sixth section of the business plan is the
product/service offerings that should contain a
description, evolution, and justification of the
product/service offerings.
The product/services must be described by highlighting
the features and attributes that would most appeal to
the target customers. The business plan should also
prove that the product/services would be accepted and
carried by the distribution channels.

21. Enterprise Strategy and Enterprise
Delivery SystemThe business plan should expound on the Enterprise
Strategy (ES) by mapping competitive landscape and by
situating the enterprise and its competitors as to their
strategies and chosen position.
The Enterprise Delivery System starts from the Input
(resources mobilized), proceeds to the Throughput (the
transformation process where input are converted to
output), and produces the Output (the
products/services). The output are then marketed to the
customers (in the case of goods)

22. Or experienced by the customers (in the case of services).
Customer satisfaction level, profits generated, and the
performance of people from the transaction are the Outcomes
of the EDS.
- The EDS serves as the enabler of the Enterprise Strategy. The
business plan must demonstrate how the EDS and ES tandem
lead to the attainment of the desired enterprise outcomes.
These business outcomes should reasonably include:
- high customer satisfaction level;
- high sales volume, market share, and market reach;
- high financial returns; and

23. - high people performance, productivity, and moral level
Financial Forecasts: Expected Returns, Risks, and
Contingencies- The business plan must translate everything that we have
discussed so far into financial forecasts and outcomes.
- From the financial forecasts, the business plan should then
calculate the expected returns from the business.
The important return calculations are the following:
1. Expected return on sales;
2. Expected return on assets or investments; and
3. Expected return on stockholders’ equity.

24. The business plan should also calculate the
long-term returns, using the time value of
money. This means estimating the internal
rate of return and the expected net present
value.
The business plan should then evaluate both
the business risks and the financial risks
involved.

25. Environment and Regulatory
ComplianceIt is composed of the environmental and regulartory
compliance
Must articulate the laws, rules, and regulations governing
the business, and the industry that the enterprise is in.
It should ascertain that all the necessary permits,
licenses, and authority to use propriety intellectual
capital had either been secured or would definitely be
secured.

26.  it should also assure the reader
that all the necessary local
government ordinances and
barangay ethics would be
followed by the enterprise.

27. Capital Structure and Financial Offering:
Returns and Benefits to Investors, Financiers,
and Partners
Contains the capital structure and financial
offerings of the enterprise including some
discussions on who are the investors, the
financiers, and the partners of the enterprise.
Finally, the business plan must appeal to its target
audience. It must highlight for them the business
plan that they are looking for.

28. THANK YOU!!!