A well-crafted business plan establishes a strong foundation, guiding informed decision-making and increasing your chances of success. Your plan is also valuable for attracting investors, securing loans, qualifying for government programs, and registering your business. To help you start, we’ll explain a business plan, its essential parts, and the practical steps to create one.
What is a Business Plan?
A business plan is a strategic document that outlines your business idea, goals, and the steps to achieve them. It serves as a blueprint for launching and growing your company, detailing everything from your product or service to your target market and financial projections. In the Philippines, a business plan may assist in securing funding from institutions like the Department of Trade and Industry (DTI), private investors, and banks. Parts of your business plan can also help you understand and complete the legal documents necessary for registering your business.
Parts of a Business Plan
A comprehensive business plan includes several components, each serving a specific purpose. Here are the core parts you need:
- Executive Summary of Business Plan: This is a concise overview of your entire plan, summarizing your business idea, goals, target market, and financial projections. It’s the first section, but it is often written last to capture the essence of your plan.
- Company Description: Details your business’s mission, vision, legal structure (e.g., sole proprietorship, corporation), and unique value proposition.
- Market Analysis: Analyze your target market, competitors, and industry trends in the Philippines to demonstrate your understanding of the local landscape.
- Products or Services: Describes what you’re offering, its benefits, and how it meets customer needs.
- Marketing and Sales Strategy: Outlines how you’ll attract and retain customers, including pricing, promotions, and distribution channels.
- Operational Plan: Covers day-to-day operations, including location, suppliers, and logistics, tailored to the Philippine context (e.g., compliance with local regulations).
- Organizational Structure: Defines your team, roles, and management hierarchy.
- Financial Plan: Includes startup costs, revenue projections, profit-and-loss statements, and funding requirements.
- Appendix: Optional section for supporting documents like permits, resumes, or market research data.
Each part ensures your plan is thorough and persuasive, especially when presenting to investors or banks in the Philippines. We’ll explain more about what to write in each section in the business plan sample template.
Business Plan Format / Business Plan Sample Template
A clear format makes your business plan professional and easy to follow. Below is a sample template tailored for Philippine entrepreneurs:
- Cover Page
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- Business name, logo, and contact details
- Date and confidentiality statement
- Table of Contents
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- List sections with page numbers for easy navigation
- Executive Summary of Business Plan
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- One-page overview of your business, including mission, target market, unique selling points, and financial goals
- Example: “Juan’s Coffee Co. aims to bring premium, locally sourced coffee to Metro Manila, targeting young professionals with a sustainable, community-driven brand.”
- Company Description
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- Write a mission statement, a specific goal of your business. For example, “To provide high-quality, eco-friendly coffee experiences.”
- Decide on a business structure (such as sole proprietorship, partnership, corporation, and their various types). For example, “Corporation registered with the SEC.”
- Location where your business operates: Quezon City, Philippines.
- Market Analysis
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- Your target market: Urban professionals aged 25–40.
- Competitors: Local and international coffee chains.
- Industry trends (within the country/region): Growing demand for sustainable products in the Philippines.
- Products or Services
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- Product: Specialty coffee and pastries.
- Unique features: Locally sourced beans, eco-friendly packaging.
- Marketing and Sales Strategy
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- Pricing: Competitive with premium positioning.
- Promotion: Social media campaigns, partnerships with local influencers.
- Distribution: Physical café and online delivery via GrabFood.
- Operational Plan
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- Location: Leased space in Quezon City.
- Suppliers: Local coffee farmers in Batangas.
- Compliance: SEC registration, DTI permits, and BIR compliance.
- Organizational Structure
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- Owner/Manager: Ferdinand Castro
- Staff: Baristas, marketing team, and accountants.
- Financial Plan
- Startup costs: ₱500,000 for equipment and initial inventory.
- Revenue projection: ₱1.2M in Year 1.
- Funding: Personal savings and a bank loan.
- Startup costs: ₱500,000 for equipment and initial inventory.
- Appendix
- Resumes, market research, and permits.
This template can be applied to most businesses. When writing your business plan, use more specific information, such as naming the companies that are your main competitors.
How to Write a Business Plan
Writing a business plan might be difficult, but keep at it and you’ll see steady progress. Here’s how to craft one:
- Start with Research: Study your industry, competitors, and target market in the Philippines. Use resources like the Philippine Statistics Authority (PSA) for demographic data or the DTI for industry insights. This will give you a better idea of what you want your business to be, how to position yourself in your chosen industry, and what you’ll need.
- Write the Executive Summary Last: Though it appears first in the business plan, write the executive summary of the business plan after completing other sections. Summarize your vision, goals, and key points in a compelling, concise way (1–2 paragraphs).
- Define Your Business: Clearly articulate your mission, vision, and what sets you apart. For example, if you’re starting a retail store in Cebu, highlight how you’ll cater to local preferences.
- Conduct a Market Analysis: Identify your target customers (e.g., millennials, small businesses) and analyze competitors. Note trends like the rise of e-commerce in the Philippines. Do field research by interviewing your customers and handing out surveys (look for something they want that isn’t readily available).
- Detail Your Offerings: Explain your products or services and their benefits. For instance, a tech startup might emphasize a user-friendly app solving a local problem.
- Plan Your Marketing: Outline strategies to reach your audience, such as leveraging social media platforms popular in the Philippines, like Facebook or Instagram.
- Map Out Operations: Describe your business’s daily operations, including compliance with local regulations (e.g., securing a Barangay Clearance or BIR registration).
- Build Your Team: List key roles and their responsibilities. If you’re a solo entrepreneur, mention plans to hire or outsource.
- Crunch the Numbers: Create realistic financial projections. Include startup costs, revenue forecasts, and funding needs. Conduct a soft launch to see how well your product sells for a few months to get more accurate sales forecasts.
- Polish and Review: Ensure your plan is clear, professional, and error-free.
- Leverage Professional Help: As a business registration and accounting service, we assist you with choosing the right business structure, applying the proper tax rates, securing the legal documents you need, and registering your business.
Summary
A well-crafted business plan is your first step toward entrepreneurial success in the Philippines. It will help you develop your product, attract investors, register your business, and make strategic decisions, especially in the early stages. While writing a business plan may be difficult, it will make the next steps of your journey much easier.
Is this Your First Time Starting a Business? We Can Help You Make Strategic Decisions That Set You Up for Success.
Developing a well-thought-out business plan is an essential step when launching a business in the Philippines. It shapes your strategy, from defining your market position to setting financial and operational goals. However, it can be difficult to make the right strategic decisions and gather all the requirements to register your business.
Thankfully, the Business Registration Philippines team provides comprehensive support for your business. We’ll assist you with pre-registration decisions, registering your business, and completing the necessary legal documents so you can focus on running your business.
Contact us today to schedule an initial consultation with one of our experts:
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