IE103 (TECHNOPRENEURSHIP 101)

BUSINESS PLAN CONTENTS & OUTLINE

EXECUTIVE SUMMARY (This is the most important section providing a short overview of the business
plan, thus, it must be convincing like a “business pitch to potential investors” of max 3 pages)
 Product Concept [Answer to questions: What is the solution? How will it be delivered (product
features and attributes)? How is it different (unique benefits)?] – This is the “Big Idea.”
 Value Proposition and Target Market (benefits vis-a-vis price; target customer profile) – “Value”
 Business Model (how revenues will be generated, how it would be a market success, start-up
strategy and future plans) – “How will it make money?”
 Viability with a summary of Performance Metrics (below) – “The Desired Outcomes” Toward
a Profitable Growth

Year 1 Year 2 Year 3 Year 4 Year 5

Sales Revenue
Profit after tax
Profit Margin

Investment Php _______M ROI _____ % Payback ____years

ACKNOWLEDGMENT (can put a product image a start-up company logo as backdrop)

TABLE OF CONTENTS (by major title and subtitle with page numbers)
LIST OF TABLES and FIGURES (with titles and page numbers)

I. INTRODUCTION (The business idea in a nutshell - max of 2 pages)

A. The New Business Venture
1. Company Name - rationale behind the chosen business name & logo
2. Management – initial investment, employment size, ownership structure; managers
3. Key Milestones (be specific in terms of target achievements over the next 5 years for
capacity building, market penetration, sales performance, patents, if any, etc.)
B. Start-Up Operations
1. Key Results Areas (KRAs) [Describe the value-adding activities that the start-up
company need to perform in order to be competitive like sourcing, assembly &
production, logistics, marketing & selling]
2. Product Realization (proposed site location; setup scheme to meet sales volume)
3. Market Penetration (proposed distribution channels, promotion, and advertising, if any)
C. The Business Strategy
1. Mission, Vision, Values [proposed for the start-up company]
2. The Goal (clear desired outcome/s of the entrepreneurial business venture)
3. Key Success Factors (competencies needed to propel and sustain the business)
4. Differentiation or Focus/Niche Strategy (product uniqueness; price positioning;
specialization; best-cost provider strategy)
5. Objectives (must be SMART; can include sales % growth and market share increases
year-on-year)
6. Competitive Positioning (tactics on how the start-up company will compete; how does
the company intend to build its image based on its chosen strategy)

II. MARKETING PLAN

A. Market Study
1. Product Concept (ideation based on NABC, UXD, Design Thinking)
2. Problem – Solution Fit (Value Proposition Canvas)
3. Product – Market Fit (Business Model Canvas)
4. Market Survey Results [Highlights only with insights relative to market potential &
growth prospects] – details (Sample Size (at least 300 - 400); Respondents’ Profile
and Summary of Responses and Questionnaire) to be placed in the Appendix
Prof. Marvin I. Noroña, MBA, PIE
IE103 – Technopreneurship 101
 B. Sales & Marketing Strategy
1. Target Market (Results of STP; Customer Profile; Target Segments; Market Size)
2. 5-year Sales Projection with pricing assumptions and Peso revenue targets
3. Product Positioning (highlight competitive advantage vs. rivals; Unique Selling
Proposition; use of perceptual map and other tools)
4. Marketing Mix – 4P’s (product highlights including design & packaging, pricing
assumptions, distribution schemes, and promotions/advertising campaigns)
5. Sales & Marketing Expense Budget (5-year expenses on selling & promotions)

III. TECHNICAL PLAN

A. Proof of Concept (designed to demonstrate feasibility of the proposed idea to solve a
customer need/problem and to show that a product concept is both functional and can be
developed) - Include target specifications, features & aesthetics with rough product sketch or
images to illustrate the rationale and value of the proposed product / solution.
B. Product Specifications (Include final product 3D drawing, product dimensions and tolerances,
assembly drawing or exploded view, module drawings for functionalities; and Bill of Materials)
C. Process Standards (Include assembly process chart and/or process flow chart; describe
technology requirement; use schematic or electrical wiring; sequence of work)
D. Manufacturing Operations (Production Design for Reproducibility) – production layout with
work stations and material flow; resources - DL & IL manpower complement, machines &
equipment, and services & fixtures; Compute production capacity - rates per day or month)
E. Product Distribution (handling, packaging, labeling, delivery scheme; instruction manual,
brochure, maintenance or user guide)
F. Office, Physical Plant and Warehouse Location/s (if owned, describe land & facilities that
will form part of start-up capital and will become the part of the depreciation schedule; if not
owned, show infrastructure requirements to start the business)
G. Business Processes (flow chart of transactions for in-house and outsourced activities, such
as but not limited to sales, purchases, material issuances, production scheduling, order
processing, delivery scheduling, selling, finance & accounting)
H. Product Costing (must include direct materials, direct labor and variable overhead costs)
1. Ensure completeness of Bill of Materials including packaging and manuals and then
compute the DM cost per unit.
2. Compute the daily production capacity requirement by dividing the biggest of the 5-year
sales projection by 12 months then by 20 days to determine the man-machine
requirements to produce the required daily production and the corresponding space, flow
and layout requirements.
3. Determine manning complement for the production line - machine operators, assemblers
and packers and compute DL cost per unit by getting the total labor expenses (after
multiplying # of men by the respective labor rates) and then dividing it by daily output rate.
4. Compute the VOH cost per unit with the following steps:
a) Assign personnel for production supervision, quality inspection, material issuance /
warehouse operations, FG handling / storage activities, and machine maintenance.
Compute indirect labor costs per unit by multiplying # of men by the respective labor
rates per day, the total of which will be divided by the daily production rate in units.
b) Determine operating requirements (water & electricity, fuel & oil, supplies and other
utilities) and compute other indirect costs per unit by determining the 8-hour operating
costs per day and dividing it by the daily production rate in units.
c) Add up the Indirect Labor and Other Costs per unit (item 4a + item 4b above)
NOTE: If outsourcing and/or subcontracting will be the scheme with final assembly operations,
DM costing will cover the costs of delivered components & sub-assemblies and supplies. DL
will be for final assembly & packaging only. FOH will cover expenses same as Item III.H.4.

Prof. Marvin I. Noroña, MBA, PIE

IE103 – Technopreneurship 101
IV. ORGANIZATIONAL PLAN
A. Company Name & Logo - Discuss rationale of company name & logo)
B. Legal Form of Business – State type of ownership (partnership, sole proprietorship or
corporation; names of owner/s or incorporators.
C. Management Team and Organization Chart - Detail the roles & responsibilities of key
personnel running the business and operations and the number of staff with positions.
D. Staffing - Specify projected number of employees; indicate monthly salary rate of each
position; mention training plans; present a 5-year budget for compensation of salaried
employees (multiply the monthly salaries by 12).
E. Bases and Assumptions (if facilities will be acquired)
1. Land Area and Building Space
a) Manufacturing Area – determine machine and staging areas for RM, WIP & FG;
compute space for aisles, locker & rest rooms, RM warehouse & FG storage, support
equipment and maintenance (show production layout with area dimensions & location)
b) Administration & Office Area – based on item IV.C, determine office area with rooms,
cubicles or table space provisions and the other service areas for pantry / canteen,
restrooms and the like (draw the office layout with dimensions and location of tables,
A/C units
c) Building Size – based on items IV.E.1a and IV.E.1b
d) Land Area – building area plus space for parking, driveway, and future expansion
2. Land Acquisition and Facility Building – estimate the cost of land (specify location and show
site location map) and site development & improvement (fencing, perimeter lighting and
pavement) and the total cost of building constructing and of interior design & fit-out.
3. Machines & Equipment – based on item III.G.1, specify the machine requirements and
support equipment and estimate the total cost of acquisition, installation, and initial
operation.
4. Furniture & Fixtures – estimate the total cost of office tables & chairs, computers, printers
& peripherals, lighting & electrical fixtures, and airconditioning units (including those in the
production area, if any).
5. Depreciation Schedule – get the annual depreciation by adding the following:
a) Land & Building – divide the total cost in item IV.E.2 by 15 years
b) Machines & Equipment – divide the total cost in item IV.E.3 by 10 years
c) Furniture & Fixtures – divide the total cost in item IV.E.4 by 5 years
F. General, Selling & Administrative Expense (GSAE) Budget - 5-year projections of the
following, but not limited to: (These will comprise the Fixed Costs)
1. Salaries & Wages (of administration personnel only according to item IV.D
2. Employee Benefits - includes 13th month pay plus 50% of the annual salaries & wages of
ALL EMPLOYEES - direct labor (item III.H.3), indirect labor (item III.H.4a) and
administration employees (item IV.D)
3. Rental Expense (if facility is leased)
4. Selling & Promotion Expense (item II.B.4)
5. Depreciation (see item IV.E.5 – only for acquired fixed assets)
6. Amortization & Interest Payments (for capital funds and loans in acquiring assets)
7. Utilities (water & electricity for office, telephone & internet, web hosting & maintenance
based on office space, layout, and furniture & fixtures in item IV.E.4)
8. Insurance & Property Taxes
9. Licenses & Fees
10. Maintenance, Repair & Operating (MRO) Expenses – R&M budget and office supplies
11. Security Services (outsourced)
12. Janitorial Services (outsourced)
13. Other Expenses

Prof. Marvin I. Noroña, MBA, PIE

IE103 – Technopreneurship 101
V. FINANCIAL PLAN
A. Investment / Funding Requirement – provide a breakdown as follows:
1. Capital Assets (if acquired - cost of land, building & improvement, machines &
equipment, furniture & fixtures in items IV.E.2, IV.E.3 and IV.E.4)
2. Pre-Operating Expenses (for licenses, registration, permits and legal requirements and
facilitation; recruitment & hiring expenses; product development and prototyping; etc.)
3. Working Capital (assume 3 months’ equivalent of total expenses – both Cost of Goods
Sold and Selling, General & Administrative Expenses excluding depreciation)
4. Cash Requirement (estimated for initial operations plus beginning cash-on-hand)
B. Key Assumptions (provide bases of computations in MS Excel spreadsheets)
1. Economic and Business Factors (interest rates, inflation, growth projections, etc.)
2. Schedule of Revenues and Expenses (at least 5-year projections of market size,
annual sales targets, and operating costs)
C. 5-Year Financial Projections
1. Income Statement (see Profit & Loss Statement template below)
2. Cash Flow Projection
3. Balance Sheet
4. Financial Ratios – profitability analysis, activity analysis, liquidity analysis
5. Financial Measures (ROI, break-even and payback period, ROA)

VI. CONCLUSION
A. Business Viability & Attractiveness (Market Growth Potential, ROI and Payback Period)
B. Assessment of Risks (Evaluate weakness of business; New technologies; Competition)
C. Overall Schedule (Business Registration; Completion of prototypes; Construction or Rental of
facilities; Obtaining critical financing; Starting production; Obtaining the first sale)
D. Future Plans (room for expansion; patent concerns; changes/trends in customer needs;
potential product improvements)

APPENDICES
 References/Bibliography (citations - source of info, using APA style version 6)
 Supporting Data (copies of relevant data & information)

Profit & Loss Template Sample Format (suggested only, do not exactly copy)

Unit costs, inflation rates and other assumptions in increases or percentages are placed in column C for computations.
Prof. Marvin I. Noroña, MBA, PIE
IE103 – Technopreneurship 101
BUSINESS PLAN WRITE-UP GUIDELINES

 Use short bond (letter size) paper

 Observe 1” x 1” margins
 Write text with font type: ARIAL and size: 12
 Employ 1.5 line spacing throughout the paper
 Observe block style and justified with indent for every paragraph
 Indicate all MAJOR SECTIONS in BOLD CAPS, Subtitles in Bold Font (capitalize
each word after A,B,C sectioning), and Discussion Points in Bold Italics (capitalize
each word after 1,2,3 sectioning )
 Each major section (in BOLD CAPS) must start on a new page
 If any, related literature must come with a citation and placed in the bibliography
using APA style version 7.0
 All supporting data must go to the Appendix as attachments (after its summary or
highlight is placed in the body of the paper with the indicated source cited as an
attachment properly labelled)

BUSINESS PLAN PRESENTATION

 Prior to the Business Plan presentation, give an “Elevator Pitch” good for 60 - 90
seconds with the objective of seeking the interest of an influential investor known
in the business circles or a CEO of a huge company. Capture this in an AVP (mp4)
file labeled LASTNAME FIRSTNAME_Product Name for submission or provide the
shareable link to a cloud storage or YouTube link.

[Note: Though this is product-specific based on the Proof of Concept, conclude the
pitch with a strong demonstration that your product idea is doable and presents a
very good business prospect with growth potential.]

 After finalizing and submitting the Business Plan, prepare and submit a MS Power
Point material highlighting major discussion points of the business plan. Convert
this to an AVP file labelled LASTNAME FIRSTNAME_Company Name for
submission too or just provide the shareable link.

 Prepare an AVP for the “Investor Deck” good for max 20 minutes [Take on the
perspective of an entrepreneur seeking for capital funding from an audience of
angel investors, venture capitalists, bank executives, industrialists and CEOs of
multinational and entrepreneurial companies.] Label the file LASTNAME
FIRSTNAME_Investor Deck – Company Name and provide the shareable link.

o If any, include a presentation of the product prototype (in 3D or VR), explain

the salient features, describe the functions of each component, and prove
how the product delivers the value proposition and drives profitable growth
Prof. Marvin I. Noroña, MBA, PIE
IE103 – Technopreneurship 101