Business Plan Workbook

Business Plan Workbook Section 1 EXECUTIVE SUMMARY

1.1 Name Of Business

1.2 Business Address

1.3 Nature Of Business

1.4 Form Of Business

1.5 Name Of Owner(s)

1.6 Brief Description Of Business

____________________________________________________________________________ _

1.7 Objectives

____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________

2

Section 2

MARKETING PLAN 2.1 Description of the Product

______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________

2.2 Comparison of the Product with Its Competitors

______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ Table 2.2 Competitive Analysis of Product Features

Proposed Business

Competito r1

Competito r2

Product quality: Length Width/Design Color Weight Price Delivery lead time Brand name Multiple use Taste Material make up

Rating: 1 - Outstanding; 2 - Very satisfactory; 3 - Good; 4 - Fair; 5- Poor

Competitor 3

3 2.3 Store Location ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ Figure 2.3 Location Map (Draw on a separate sheet of paper) 2.4 Market Area ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ Table 2.4 List of Market Areas and Size of Market Barangay /Locality

No. of Households

Population

2.5 Main Customers ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ Table 2.5 List of Major Customers and their Requirements

2.6 Total Demand ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ Table 2.6 Table of Projected Demand

4 Year

Quantity

Amount ( Pesos)

2.7 Total Supply

Table 2.7 Table of Projected Supply & Sources of Supply Supplier

Year

Quantity

Amount (Pesos)

2.8 Market Share ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________

Gap Analysis Year

Market Requirement

Available Supply

GAP

2.9 Selling Price ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ Table 2.9 Comparison of Competitors’ Selling Prices

5

Project’s Product(s)

Project’s Selling Price

Prices of Competitors Competitor 1

Competitor 2

Competitor 3

Competitor’s Average Price

2.10 Sales Forecast ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ Table 2.10 Projected Sales by Year, Sales Volume and Amount Year ______________

Sales Volume (Units) _________________

Sales Amount (Pesos)) _______________

______________

_________________

_______________

______________

_________________

_______________

______________

_________________

_______________

______________

_________________

_______________

______________

_________________

_______________

2.11 Promotional Measures ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________

2.12 Marketing Strategy

6 ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________

Table 2.12 Table of Competitor’s Marketing Strategy Competitor

Product

Price

Distribution

Promotion

2.13 Marketing Budget

______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________

7 Table 2.13 Marketing Budget Item Projected Sales Marketing Expenses: Promotion (Specify) Distribution (Specify) Advertising (Specify) Selling (Specify)

Total Marketing Expenses Marketing Expenses over Sales (%)

8

Section 3

PRODUCTION PLAN PPPPPPPPPLPLAN 3.1 Production Process ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ Figure 3.1.1 Process Flow Chart (Draw on a separate sheet of paper) 3.2 Fixed Assets ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ 3.3 Life of Fixed Assets

Table 3.3 Schedule of Useful Life and Depreciation Rate Machines, Tools & Fixtures

3.4 Maintenance and Repairs

Cost

Useful Life

Depreciation Rate

9 Table 3.2.1 List of Machinery, Number, Specifications and Purpose Machines, Tools & Fixtures

Number

Specifications

Purpose

Table 3.2.2 List of Machinery, Suppliers and Price Machines, Tools & Fixtures

Suppliers

Price per Unit

No. of Units

Total Cost

Terms of Purchase

10 3.5 Sources of Equipment

Table 3.5.1 List of Equipment and Suppliers Machines, Tools & Fixtures

Suppliers

3.6 Planned Capacity

Projected Production Volume by year Year

3.7 Future Capacity

3.8 Terms and Conditions of Purchase of Equipment

3.9 Plant Location and Layout

Volume

11

Figure 3.9.1 Plant Location

Figure 3.9.2 Plant Layout

(Draw on a separate sheet of paper)

(Draw on a separate sheet of paper)

3.10 Raw Materials Needed

3.11 Cost of Raw Materials

Table 3.11 List of Materials, Quantity Needed and Cost Raw Materials A. Direct Materials

B. Indirect Materials

Total Material Cost

Unit Price of Materials

Quantity Needed

Total Cost

Remarks

12

3.12 Raw Materials Availability

Table 3.12 List of Raw Materials, Sources and Price Type of Materials

Suppliers

Unit Price

3.13 Labor

Table 3.13 Job Position, Qualifications and Experience of Direct and Indirect Labor (See page 14) 3.14 Cost of Labor

Table 3.14 Job Position, Number and Cost 3.15 Labor Availability

3.16 Labor Productivity

(See page 15)

13

3.17 Factory Overhead Expenses

Table 3.17 Overhead Items and Cost (See page 16) 3.18 Production Cost

Table 3.18 List of Direct Materials Used, Direct Labor Employed and Factory

Overhead – Total and Unit Cost (See page 13 )

14 Table 3.13.1 Job Position, Qualifications and Experience of Direct Labor Direct Labor Job Title of Worker

Qualifications

Experience

Table 3.13.2 Job Position, Qualifications and Experience of Indirect Labor Indirect Labor Job Title of Worker

Qualifications

Experience

15 Table 3.14.1 Labor Cost Year

1 2 3 4

Type of Labor

No. of Workers

Total Salary per Month

Total Fringe Benefits per Month

Total Labor Cost per Year

Direct labor Indirect Labor Total Direct labor Indirect Labor Total Direct labor Indirect Labor Total Direct labor Indirect Labor Total

Table 3.14.2 Direct Labor Cost Product

Production Time per Product Unit

Direct Labor Rate

Direct Labor Cost per Product Unit

16 Table 3.17 Factory Overhead Expenses Year Overhead Item

1

2

3

4

5

Total Factory Overhead Per Year \

Factory Overhead per product unit Table 3.18 Production Cost

Product

Planned Production Volume

Direct Materials Per unit

Total

Direct Labor Per unit

Factory Overhead Total

Per unit

Total

Total Cost Per unit

Total

17

18

Section 4

ORGANIZATION & MANAGEMENT PLAN 4.1 Form of Business

4.2 Organizational Structure

Figure 4.2 Organization Chart (Draw on a separate sheet of paper) 4.3 Business Experience(s) and Qualifications of the Entrepreneur(s)

Annex: Entrepreneur’s Bio-data 4.4 Pre-operating Activities

Figure 4.4 Gantt Chart Pre-Operating Activities

19

Timetable (In ________)

Activities

1

2

3

4

5

6

7

8

9

1 0

1 1

1 2

1 3

1. 2. 3. 4. 5. 6. 7. 8. 9.

4.5 Pre-operating Expenses

Table 4.5 Pre-Operating Expenses Pre-Operating Expenses

4.6 Office Fixed Assets and Equipment

Amount

1 4

1 5

1 6

1 7

1 8

20

Table 4.6 List of Office Fixed Assets and Equipment, Number Required, Cost and Depreciation Rate Item

Number

Cost

Depreciation Rate

4.7 Administrative Expenses

Table 4.7 Position Items and Wage/Salary Position Item

Section 5

FINANCIAL PLAN 5.1 Capital Requirement (Project Cost)

Table 5.1 Capital Requirement (See page 21) 5.2 Financing Plan and Loan Requirement

Wage/Salary

21

Table 5.2 Financing Plan (See page 22) 5.3 Security for Loan

Table 5.3 Particulars of Collateral Offered

Total Value of Security * Specify whether purchase, book or market value. Table 5.1 Capital Requirement Investment Item 1. Fixed Assets 1.1 1.2 1.3 1.4 1.5 1.6 1.7 Sub-total 2. Pre-operating Expenses 2.1 2.2 2.3

Amount (Pesos)

Percent

22

Sub-total 3. Working Capital 3.1 3.2 3.3 3.4 3.5 3.6 Sub-total Total

Table 5.2 Financing Plan

Items 1. Fixed Assets 1.1

Land

1.2

Building

1.3

Machinery

1.4

Vehicles

1.5

Furniture

1.6

Office Equipment

1.7

Others

2. Pre-Operating Expenses 4. Working Capital 3.1 Raw Materials

Cost

Bank Loan

Equity

Sources Other Creditors

Total

23

3.2 Work in Process 3.3 Finished Goods 3.4

Accounts Receivable

3.5 Permanent Working Capital Total (Pesos) Total (%)

5.4 Profit and Loss Statement

Table 5.4 Projected Profit and Loss Statement (See page 24) 5.5 Cash Flow Statement

24

Table 5.5.1 & 5.5.2 Projected Cash Flow Statement (See pp.28-29; monthly/annual). 5.6 Balance Sheet

Table 5.6 Projected Balance Sheet (See page 30).

Profit and Loss Statement (For the Year Ended December 31, _________)

Gross Sales

P ____________

Less: Returns and Allowances

____________

Net Sales Less: Cost of Goods Sold

____________

Direct Materials

____________

Direct Labor

____________

Factory Overhead

____________

Gross Profit

____________

Less: Administrative and Selling Expenses

____________

Operating Profit

____________

Less: Interest Expense

____________

Net Profit before Tax

____________

Less: Estimated Income Tax Net Profit After Tax

____________ P ============

25

Cost of Goods Sold for Manufacturing 1. Direct Materials 1.1

Beginning Inventory

1.2

Add: Purchases

1.3

Cost of materials available

1.4

Less: Ending inventory

1.5

Total cost of materials used for production

2. Direct Labor 3. Factory Overhead 3.1

Depreciation

3.2

Rental

3.3

Indirect labor

3.4

Maintenance and repair

3.5

Indirect materials (e.g. packaging mat., oil)

3.6

Utilities (e.g. electricity, water)

3.7

Insurance

3.8

Others

3.9

Total manufacturing overhead ( 3.1 + up to 3.8 )

26

4. Total manufacturing cost (1.5 + 2 + 3.9 ) 5. Work in process 5.1

Work-in process, beginning

5.2

Less: Work-in process, ending

5.3

Net Work-in-process

6. Cost of goods manufactured (4. + 5.3.) 7. Add: Finished goods inventory, beginning 8. Cost of goods available for sale (6. + 7.) 9. Less: Finished goods inventory ending 10. COST OF GOODS SOLD (8. - 9.)

COST OF GOODS SOLD FOR SERVICES 1. Direct Materials (e.g. food (restaurant), fuel (petrol station), paper (photocopying), room supplies (hotel) 1.1

Beginning materials inventory

1.2

Add: Purchases + Freight-in

1.3

Total cost of materials available for operation

1.4

Less: Ending materials inventory

1.5

Total cost of materials purchased and used

2. Direct Labor (e.g. cooks and waiters for restaurant, technicians for repair services, teachers for language centers, washers for laundry service) 3. Operational Overhead 3.1

Depreciation -

Building

-

Equipment

-

Furniture & Fixtures

-

Vehicles

-

Others

27

3.2

Rental

3.3

Indirect labor

3.4

Maintenance and repair

3.5

Indirect materials (e.g. flowers for hotel, restaurant)

3.6

Utilities (e.g. electricity, water)

3.7

Insurance

3.8

Others (e.g. transport)

3.9

Total operational overhead (3.1 + up to 3.8)

4. Cost of Services Sold (1.5 + 2. + 3.9)

COST OF GOODS SOLD FOR TRADING 1. Direct Materials 1.1

Beginning merchandise inventory

1.2

Add: purchases + Freight-in

1.3

Total cost of merchandise available for sale

1.4

Less: Ending inventory

1.5

Total cost of merchandise purchased and sold

2. Direct Labor 3. Operational Overhead 3.1

Depreciation -

Building

-

Equipment

-

Furniture & fixtures

-

Vehicles

-

others

3.2

Rental

3.3

Indirect Labor

3.4

Maintenance and repair

28

3.5

Indirect materials (e.g. packaging material, stationery)

3.6

Utilities (e.g. electricity, water)

3.7

Insurance

3.8

Others

3.9

Total operational overhead

4. COST OF GOODS SOLD ( 1.5. + 2. + 3.9.)

29

Table 5.5.1 PROJECTED MONTHLY CASH FLOW STATEMENT

30 Particulars

PreOperating Period

1

2

3

4

5

Month 6 7

Total 8

9

CASH INFLOW Equity Borrowings Cash Sales Collection of A/R Other Income Total Cash Inflow CASH OUTFLOW Pre-operating expenses Purchase of fixed assets Direct materials Direct labor Factory/operational overheads* Inventory of raw materials Inventory of work- in-process Inventory of finished goods Marketing expenses Administrative expenses * Interest expenses Loan amortization Taxes payable Total Cash Outflow NET CASH INFLOW (OUTFLOW) CASH BALANCE BEGINNING CASH BALANCE ENDING * Excludes depreciation expenses and amortization of pre-operating expenses which are non-cash items.

10

11

12

31

Table 5.5.2 PROJECTED ANNUAL CASH FLOW STATEMENT Particulars

Pre-Operating Period 1

2

YEAR 3

CASH INFLOW Equity Borrowings Cash Sales Collection of A/R Other Income Total Cash Inflow CASH OUTFLOW Pre-operating expenses Purchase of fixed assets Direct materials Direct labor Factory/operational overheads* Inventory of raw materials Inventory of work-in-process Inventory of finished goods Marketing expenses Administrative expenses * Interest expenses Loan amortization Taxes payable Total Cash Outflow NET CASH INFLOW (OUTFLOW) CASH BALANCE BEGINNING CASH BALANCE ENDING * Excludes depreciation expenses and amortization of pre-operating expenses which are non-cash items.

4

5

32

Table

5.6

Projected Balance Sheet ( As of _____________) Pre-Operating Period

ASSETS Current Assets Cash Raw Materials Inventory Work-in-process Finished Goods Inventory Accounts Receivable Prepaid Expenses Total Current Assets Fixed Assets Land Building Machinery & Equipment Vehicles Furniture & Fixtures Less: Accum. Depreciation Net Fixed Assets Total Fixed Assets Other Assets Pre-operating expenses Goodwill Patents

TOTAL ASSETS LIABILITIES Current Liabilities Accounts Payable Loans Payable Total Current Liabilities Long-Term Liabilities Loans Payable Total Long-term Liabilities

OWNER’S EQUITY Capital Beginning Accumulated Capital Add: Net Profit after Tax Less: Withdrawal/ Dividends Total Owner’s Equity

TOTAL LIABILITIES AND EQUITY

YEAR 1

2

3

4

5

33

5.7 Loan Repayment Schedule

Table 5.7 Loan Repayment Schedule

____

Principal at Beginning

______ Installment

1 2 3 4 5 6 7 8 9 10 11 12

5.8 Break-even point (BEP)

5.9 Return on Investment (ROI)

Interest Paid

Principal Paid

Principal at End

34

5.10 Financial Analysis (Ratio Analysis: Current Ratio, Debt-Equity Ratio, Sensitivity Analysis)