Business Plan Workbook
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
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1.7 Objectives
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Section 1EXECUTIVE SUMMARY
2.1 Description of the Product
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2.2 Comparison of the Product with Its Competitors______________________________________________________________________
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Table 2.2 Competitive Analysis of Product
FeaturesProposed Business
Competitor 1
Competitor 2
Competitor 3
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
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Section 2MARKETING PLAN
2.3 Store Location____________________________________________________________________________
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Figure 2.3 Location Map (Draw on a separate sheet of paper)
2.4 Market Area____________________________________________________________________________
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Table 2.4 List of Market Areas and Size of Market
Barangay /Locality No. of Households Population
2.5 Main Customers____________________________________________________________________________
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Table 2.5 List of Major Customers and their Requirements
2.6 Total Demand____________________________________________________________________________
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Table 2.6 Table of Projected Demand
3
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____________________________________________________________________________
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Gap AnalysisYear Market Requirement Available Supply GAP
2.9 Selling Price____________________________________________________________________________
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Table 2.9 Comparison of Competitors’ Selling Prices
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Project’s Product(s)
Project’sSelling Price
Prices of Competitors Competitor’sAverage
PriceCompetitor1
Competitor2
Competitor3
2.10 Sales Forecast ____________________________________________________________________________
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Table 2.10 Projected Sales by Year, Sales Volume and Amount
Year Sales Volume (Units) Sales Amount (Pesos)) ______________ _________________ _______________
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2.11 Promotional Measures____________________________________________________________________________
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2.12 Marketing Strategy
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Table 2.12 Table of Competitor’s Marketing Strategy
Competitor Product Price Distribution Promotion
2.13 Marketing Budget ______________________________________________________________________
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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 (%)
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3.1 Production Process____________________________________________________________________________
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Figure 3.1.1 Process Flow Chart (Draw on a separate sheet of paper)
3.2 Fixed Assets____________________________________________________________________________
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3.3 Life of Fixed Assets
Table 3.3 Schedule of Useful Life and Depreciation Rate
Machines, Tools & Fixtures Cost Useful Life Depreciation Rate
3.4 Maintenance and Repairs
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Section 3PRODUCTION PLAN PPPPPPPPPLPLAN
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 SuppliersPrice per
UnitNo. of Units
Total Cost
Terms of Purchase
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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 Volume
3.7 Future Capacity
3.8 Terms and Conditions of Purchase of Equipment
3.9 Plant Location and Layout
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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 MaterialsUnit Price of Materials
Quantity Needed
Total Cost
Remarks
A. Direct Materials
B. Indirect Materials
Total Material Cost
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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 (See page 15)
3.15 Labor Availability
3.16 Labor Productivity
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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 )
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Table 3.13.1 Job Position, Qualifications and Experience of Direct Labor
Direct LaborJob Title of Worker
Qualifications Experience
Table 3.13.2 Job Position, Qualifications and Experience of Indirect Labor
Indirect LaborJob Title of Worker
Qualifications Experience
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Table 3.14.1 Labor Cost
Year Type of Labor No. of Workers Total Salary per Month
Total Fringe Benefits per Month
Total Labor Cost per Year
1Direct laborIndirect LaborTotal
2Direct laborIndirect LaborTotal
3Direct laborIndirect LaborTotal
4Direct laborIndirect LaborTotal
Table 3.14.2 Direct Labor Cost
ProductProduction Time per Product Unit
Direct Labor RateDirect Labor Cost per Product Unit
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Table 3.17 Factory Overhead Expenses
Overhead ItemYear
1 2 3 4 5
Total Factory Overhead Per Year\
Factory Overhead per product unit
Table 3.18 Production Cost
Product
PlannedProduction
Volume
DirectMaterials
DirectLabor
FactoryOverhead
Total Cost
Per unit Total Per unit Total Per unit Total Per unit Total
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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
Timetable (In ________)
Section 4ORGANIZATION & MANAGEMENT PLAN
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Activities1 2 3 4 5 6 7 8 9 1
011
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13
14
15
16
17
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1.
2.
3.
4. 5.
6.
7.
8.
9.
4.5 Pre-operating Expenses
Table 4.5 Pre-Operating Expenses
Pre-Operating Expenses Amount
4.6 Office Fixed Assets and Equipment
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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/SalaryPosition Item Wage/Salary
5.1 Capital Requirement (Project Cost)
Section 5FINANCIAL PLAN
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Table 5.1 Capital Requirement (See page 21)
5.2 Financing Plan and Loan Requirement
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 Amount (Pesos)
Percent1. Fixed Assets
1.1
1.2
1.3
1.4
1.5
1.6
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1.7 Sub-total
2. Pre-operating Expenses
2.1
2.2
2.3
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 CostSources
Bank Loan Equity Other Creditors
Total
1. Fixed Assets
1.1 Land
1.2 Building
1.3 Machinery
1.4 Vehicles
1.5 Furniture
1.6 Office
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Equipment
1.7 Others
2. Pre-Operating Expenses
4. Working Capital
3.1 Raw Materials
3.2 Work in Process
3.3 Finished Goods
3.4 AccountsReceivable
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
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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 ____________
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Less: Interest Expense ____________ Net Profit before Tax ____________
Less: Estimated Income Tax ____________
Net Profit After Tax P ============
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
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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 )
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
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3.1 Depreciation
- Building
- Equipment
- Furniture & Fixtures
- Vehicles
- Others
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
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- Furniture & fixtures
- Vehicles
- others
3.2 Rental
3.3 Indirect Labor
3.4 Maintenance and repair
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.)
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Table 5.5.1 PROJECTED MONTHLY CASH FLOW STATEMENT
Particulars Pre-Operating Period
Month Total1 2 3 4 5 6 7 8 9 10 11 12
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.
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Table 5.5.2 PROJECTED ANNUAL CASH FLOW STATEMENT
ParticularsPre-Operating
Period YEAR1 2 3 4 5
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.
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Table 5.6 Projected Balance Sheet ( As of _____________)
Pre-Operating Period
YEAR
1 2 3 4 5
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
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5.7 Loan Repayment Schedule
Table 5.7 Loan Repayment Schedule
____Principal atBeginning
______Installment
InterestPaid
PrincipalPaid
Principalat End
1
2
3
4
5
6
7
8
9
10
11
12
5.8 Break-even point (BEP)
5.9 Return on Investment (ROI)
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5.10 Financial Analysis (Ratio Analysis: Current Ratio, Debt-Equity Ratio, Sensitivity Analysis)
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