Why you need to learn how to write a business plan

 From small business success blog

For most students, I think, writing a business plan is a big challenge.  Despite the long lead time given to them (45 days after the semester officially ends) 3 to 5 per batch fail to submit the business plan on time.  For those who submit, the rigor of of making a business plan does not set it.

The on going rate for a business plan is about P200t per.  It could be a good way to earn in the future.  Not many MBA grads, I think know how to write a winning business plan.  I yet have to see my students join a business plan writing competition.  I did announce before a Larry Farrell business plan writing competition (NO ONE JOINED SUBMITTED A PAPER SO I HAD TO STOP IT)

Here is another reason/post why a business plan is needed

Submission of business plans last December 20, 2012

I received yesterday 11 business plans via LBC courier at my office in Angono, Rizal.  Several were in partnership with one another.  Two submitted earlier:   one from Icham, and other from CC.

However the thin ones I could easily say did not conform to the minimum of 40 pages as specified in the syllabus.  I will have to sweat out checking those business plan during the vacation.

I have to see whether they learned from the class during the semester.  Those who do in partnership will suffer when they do the strama

One submitted at AGSB last December 19, 2012 at the last day of classes and I will not see until Jan 7, 2013.

Some notes on last Oct 1 2012 session

The following are some important notes I made on last session last Monday:

l.  On MVP's withdrawal of support from Ateneo.  There were very few attendees yet at the time this was discussed and Ms. Lei Pichay was grilled on this.  The idea being emphasized was that MVP could not buy principles.  Businessmen and the clergy have their role to perform in the society;  therefore they are poles apart.   Businessmen are driven by expediency and efficiency.  The clergy is driven by what is right, entrepreneurship, what is good for all. The Jesuits, under Fr. Magadia did not say anything new at all.  He was not arguing with MVP.

2.  On SR.  The social entrepreneurship and CSV were particularly interesting special reports.  Elena must have done a great deal of effort and time to understand the CSV.  CSV is capitalism reinvented.

On Social entrepreneurship  -  the profit motive is used to sustain the social enterprise.  There is less of cash burn.

3.  Case analysis.  This is on Mico, which is about input-throughput- output.   This is an elaboration of  the PDQ group creative activity.  However, the driving force that dictates the ITO stream is the primary target market.  Different folks (PTM) different strokes (ITO).  The fun part of the case analysis is the drawing of the profile of the PTM:   how does she look like, is she old or young?  Is she fat or thin?  Marty and Lloyd did the honors of drawing the PTM.

Marty said that what he drew are the mother and daughter from school going to MICO shop.

It is emphasized that the long form of the enterprise delivery system as well as the dashboard should be incorporated in the business plan.

4.  Business plan -  The professor again drew on the board the parts of the business plan and emphasized the deficiency of the past classes on business plan parts.  He reminded the students to regularly submit parts of the business plan and/or submit a group business plan on the PDQ they worked on.

5.  Other requirements -The rest of the class who have not submitted their NU 12, inspirational video, factors paper, pictures for their class cards, learning agreement to do so at the earliest possible time.  Cramming at the last hour usually results in the students not being able to submit anything at all.

Revisiting the syllabus is advised.

Business Plan writing results; guidelines for the curren class

---------- Forwarded message ----------
From: Michael Ligayo <michael_ligayo@yahoo.com>

Michael Ligayo

From: Jorge Saguinsin <profjorge.entrep@gmail.com>
To: Michael Ligayo <michael_ligayo@yahoo.com>
Sent: Friday, September 14, 2012 12:49 PM
Subject: Business Plan writing results

Hi Mike:

I would like to update you on the results of business plan writing final requirements of the subject:

I should be able to submit grades tomorrow.  Those who got INC have one month to submit;  otherwise, the INC becomes F.

l.  Stats:

     Of the __ or so who enrolled;  __ did not continue, 19 submitted business plan;  __ did not meet deadlines for the business plan submission.

2.  There were only 4 who got respectable grades:   Trisha, you, John Ng and Ed Duenas.  For those who submitted drafts before the deadlines, they were awarded 5 points or 0.20 for the total grades0

3.  Comments:  I am writing this so that the class will be properly guided in writing their next major paper:   the strama.

 l.  Completeness:   Many suffered from completeness difficulties.  The requirement was that if you must submit a decent and complete business plan, it should be at least 40 pages.

2.  Minimum contents:

       l.  Business concept:  one to 60 words description of the business (N.B. not the product although in some cases the business = product) 5 pts.  The id exercise and menus should have thoroughly trained us on this and NU 12 too.

       2.  Business model canvass:  10 pts  Most lacked the financial:   revenue vs cost;  unit selling price vs cost

            MVP   -  must be compelling and differentiating;   only the main value proposition must be highlighted.  There are other value propositions;  but mention the main.

            The id exercise and the iron chef menu should have prepared well us for this;  and also Pranav and Jose Lontoc

     3.  Business objectives:  I gave  hand out and there is in the pages:   Teaching resources a long article on business objectives:  VMOKRAPI.  The other objectives were dismissed and lack figures for  the KRAPI

     4.  Sales projections:20 pts  should include MACRO:   PESTEL etc and the MICRO.  The very important things I am looking for in this chapters are:    Size of the market, your market share.  The observation, foot traffic (see {Pranav case again) should be a guide on how markets can deduced from observation   Our micromarket observations likewise should enable us to guessestimate how the sales should like in the next 3 years or so.

The sales projection should be the basis of the FS projections.

Many lacked the numbers for sales projection and fs was divorced from this chapter, and the proving of the sales projection is thus week and disconnected.

     5.  Product:   some papers do no have product chapter:   Minimum content: (10 pts)

        l.  Product description/concept/logic, what problems does the product serve?  Is in an answer to what pissed off people?

       2. PTM (demographics/psychographics)

        3.  COGS/BOM

        4.  How it is made;

       5.  Competitive analysis on 4Ps or other criteria

       6.  Alpha and beta testing.

5,  Enterprise delivery system:     SPATRES  20 pts

A very detailed strategy on how the the objectives (stipulated at number 3,3 ) are to be met:   Sales objectives, financials, customer impact, job generation are to be met.

TO BE DISCUSSED IN GREAT DETAILS ARE:

       1.  INPUTS (the 4ms)

       2.  THROUGHPUTS (PROCESSES, CONTROLS, JOB DESCRIPTIONS, QUALITY INITIATIVES, COUNTERMEASURES) . tHEY SHOULD COVER THE  FUNCTIONAL AREAS:    FINANCE, HR, OPERATIONS,

      3.  OUTPUTS:  PRODUCT  (PRICE, DELIVERY QUALITY)

     4.   MATCHING (MARKETING)

     5.  OUTCOMES (the business objectives)  

The case for this is MICO.  The creative activity for this is PDQ.

6.  FS there must be 3 FS:

     l.  Balance sheet

     2.  PNL

     3.  Cash flow

In previous classes, I  gave f to papers without FS.  I gave consideration today not to fail students without FS.  I gave a spreadsheet for FS and should have been studied by groups.

7. Exit:   how do you exit:  sell, go on IPO, or close the business.  Some did not discuss this at depth.) succession

8.  Compliance with regulations:    local, national international  rules:  waste disposal, health and environmental issues.

       7 and 8 are worth 5 pts.

This is a lowdown on my teaching career. It meant that the students did not understand the lessons/course or that the ampitheater was not conducive to learning.  We had groups so that they could help one another create the business plan.

Is it possible too that they did not read or were no very much engaged?

Sincerely