The Pinoy Entrepreneur

In this chapter from The Ultimate Guide to Starting Your Own Business, Jose M. Galang Jr., explains the importance of having a business plan and the essential details that must be included in one. Read on to learn more.

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No matter how small the business you are planning to build is, it is good practice to create a business plan before starting it. The business plan will serve as your roadmad and it will guide you through uncertain times. Here are the essentials of a good Business Plan.

A brief statement of the purpose and goals of your business. Try to keep the goals realistic so that potential investors or lenders who will read it will not doubt the plan.

A brief summary of the plan's important contents. This section encapsulates the entire business plan and is written for those who may not have the time to go over the entire document. This is usually written last after the entire document is completed.

A clear and complete description of the business you intend to set up and how you plan to go about it. Include a listing of key people who will invest in or manage the business. The objective is to convince readers that your management team is capable of running the business.

Mainly, in this section, you will discuss the 4 P's in marketing, i.e., Product, Price, Placement, and Promotion. This is where you will discuss the characteristics and selling points of your product. You will also have to include marketing strategies that you plan to take and the demographics of your target market.

This section summarizes the flow of money into and out of the business. You will also be required to make a detailed budget and financial projections on how the business is expected to perform in the coming years. It is important to show how and when the business is expected to break-even and start earning.