Description of the business
A brief description of the business must include information about the type of product or service that
the business intends to produce or provide. It may include a brief information about the ultimate
mission, vision, and objectives of the business.
Location of the business
The following factors should be considered of the proposed business: when deciding on the location:
1. Proximity to the target customers
2. Distance from the sources of raw materials, labor, and utilities
3 . Availability and cost of transportation
4. Peace and order situation
5. Presence of direct competitors
6. The geographic and climatic conditions
Funding requirements and sources
The estimated total initial cost of the business venture must be clearly indicated. It should include the
projected breakdown or allocation of the total cost, e.g., how much will be for building, fixtures,
equipment, supplies, and working capital. This section also presents the source or sources of funds.
Environmental Analysis
The last section of the executive summary is a description of the parties that strongly support the
business. The parties that have a direct relationship with the business are as follows:
Relevant information about individuals and parties that support the business is important since the
proposed business may conduct transactions with them later.
➤The business description section presents the nature and form of the business to be undertaken, and
may cover two to three pages. As to nature, the business may be a merchandising, service,
manufacturing, or a hybrid. The description must include the innovative features of the business. As to
form, it may either be a sole proprietorship, a partnership, or corporation. The reason/s for the selection
of the form must also be indicated.
1. Nature of the organization
2. Product or service that it plans to produce or serve.
3. Various plant and office equipment.
4. Size of the proposed business
5. Personnel requirements
6. Administrative operation
Organizational Plan
The organization plan provides a detailed description of the business in terms of the following:
1. Form of business organization – A business organization can come in the form of a sole
proprietorship, a partnership, or a corporation.
2. Organizational structure – The organizational structure of the business is usually shown or reflected in
the organizational chart. It shows and defines the hierarchy of the different positions in the organization
and the interrelationships of the different offices or departments. The organizational chart depicts the
flow of communication within the organization, and the line and staff authority that must be observed
and executed.
4. Roles and responsibilities – The roles and responsibilities of the various positions in the business
organization must be clearly defined in order to minimize and avoid misunderstanding and overlapping
of functions.
5. Salary requirements – Equal amount of share by each member
Production Plan
The Production plan presents or describes activities related to the production of goodsduction plan the
result of the industry analysis, particularly the study of supply and demand and consumer behavior.
1. Production schedule – The production schedule presents the total number of goods to be produced
and the expected time to produce them. The total number of units to produce, however, is usually
affected by the following factors:
1. Demand for the product
2. Availability of resources
3. Capacity of the plan