DEVELOPING A

BUSINESS PLAN
Content Standard:

 The learner demonstrates understanding of

concepts, underlying principles, and processes
of developing a business plan.
Performance Standard:

 The learner independently or with his/her

classmates presents an acceptable detailed
business plan.
Learning Competencies:
 1. Recognize a potential market
The learners…
1.1 Identify the market problem to be solved or the market
need to be met; and
1.2 Propose solution/s in terms of product/s and service/s
that will meet the need using techniques on seeking,
screening, and seizing opportunities:
1.2.1 Analyze the market need;
1.2.2 Determine the possible product/s or service/s that
will meet the need;
1.2.3 Screen the proposed solution/s based on viability,
profitability, and customer requirements; and
1.2.4 Select the best product or service that will meet the
market need.
Opportunity
Seeking, Screening
& Seizing
OPPORTUNITY SEEKING

 Entrepreneurs are innovative opportunity

seekers.
 Entrepreneurs create value by introducing new
products or services or finding better ways of
making them.
Entrepreneurial Mind Frame, Heart
Flame, & Gut Game
Entrepreneurial mind frame
 allows the entrepreneur to see things in a very positive and optimistic light in the
midst of crisis or difficult situations.
Entrepreneurial heart frame
 driven by passion, they drawn to find fulfillment in the act and process of
discovery.
 it is also about emotional intelligence (EQ) – often manifested in the
entrepreneur’s efforts to nurture relationships with customers, employees, and
suppliers.
Entrepreneurial gut game
 refers to the ability of the entrepreneur to sense without using the five senses.
 also known as intuition.
The Many Sources of Opportunities

 Macro Environmental Sources of Opportunities

 Industry Sources of Opportunities
 Market Sources of Opportunities
Macro Environmental Sources of
Opportunities
 refers to the “big or macro forces” that affect
the area, the industry, and the market, which
the enterprise belongs to.
FIVE CATEGORIES OF MACRO
ENVIRONMENTAL FORCES:
 Socio-cultural environment – includes the
demographics and cultural dimensions.
 Political Environment – defines the governance
system of the country or the local area of business. It
regulates the use of natural resources; the disposal
of wastes; the taxation of income; the importation of
goods and services; the accounting and reporting
of business financial statements; public and private
education; health programs; use of public funds;
etc.
FIVE CATEGORIES OF MACRO
ENVIRONMENTAL FORCES:
 Economic Environment – supply and demand
forces mainly drive the macro economic
environment. They are the factors that drive the
interest and foreign exchange rates that
fluctuate with the movement of the market
forces.
 Ecological environment – includes all natural
resources and the ecosystem, habitat of men,
animals, plants, and minerals.
FIVE CATEGORIES OF MACRO
ENVIRONMENTAL FORCES:
 Technological environment – new scientific and
technological discoveries, which often lead to
the launch and commercialization of new
products with superior attributes or to rendering
the old ones obsolete.
Examples of Relevant Opportunities and Threats to a Fast Food Chain

FACTORS OPPORTUNITIES TO THE THREATS TO THE

ENTERPRISE ENTERPRISE

1. Social
• Increasing double • Increased customer
income earners in the base for the fast food
family (i.e. both father & chain
mother are working) • More healthy product
• Trend toward healthier offerings are demanded
food choices by customers
2. Political • Increased purchasing
• Tax exemption for 13th power of the customers
month pay and other leading to higher retail
bonuses up to P70, sales
000.00 passed by
Congress.
 FACTORS OPPORTUNITIES TO THE THREATS TO THE ENTERPRISE
ENTERPRISE

3. Economic • Smaller supplier’s

• ASEAN Integration in • Opportunity for the enterprise to difficulty coping with
2015 (countries that expand to other ASEAN markets greater competition
belong to ASEAN posed by foreign rivals;
trading at zero tariff) might lose small but
reliable suppliers
4. Ecological • Opportunity to start an • Additional costs incurred
• Increased usage of advocacy toward a “greener” by new packaging may
eco bags and operation (not limited to usage decrease profitability
environment-friendly of eco-friendly
containers containers/packaging)
5. Technological • Greater usage of apps to place • Potential for online
• Increased usage of delivery orders via smartphones, customer
smartphones to which may help increase disappointments and
disseminate market research netizen bashing due to
important information poor product/service
(e.g. news, weather, delivery brought about
traffic updates) by intermittent technical
glitches
Industry Sources of Opportunities

 The proper classification of what industry the

enterprise is competing in is important if the
entrepreneur’s intention is to define who are the
relevant customers, who are the direct and
indirect competitors, and what are the critical
characteristics of the market as to the quality of
products or services to be delivered.
Participants in an industry include:

1. Rivals or competitors in a particular type of

business (e.g. Coca-Cola vs. Pepsi; Samsung
Galaxy vs. Apple’s Iphone, etc.)
2. Suppliers of input – (e.g. fuel, electricity, raw
materials) to rivals as well as suppliers of
machinery and equipment, suppliers of
manpower and expertise, and supplies of
merchandise
Participants in an industry include:

3. Consumer market segments being served by

rivals or competitors
4. Substitute products or services, which customers
shift or turn to.
5. All other support and enabling industries
 After identifying the participants, it would help
the entrepreneur to determine the logic of the
industry.
1. How do these participants in the industry make
or lose money?
2. What critical factors drive the industry’s
success?
3. What critical factors lead to failures?
Market Sources of Opportunities

 can be discovered from increased or decreased

demand as well as higher or lower supply.

Example: battle of the value/combo meals

Micromarket

 refers to the specific target market segment of a

particular enterprise.
 These are the target customers that represent
the immediate customers of the enterprise; a
clearly defined location or specific customer
group that the enterprise wishes to serve.
Consumer Preferences, Piques, and
Perceptions
 Consumer preferences – refer to the tastes of
particular groups of people.
 Piques – annoyances
 Perceptions – how customers perceive the
product
OPPORTUNITY SEEKING