Starting a business is exciting. The thought of being your own boss, building something from scratch, and earning on your own terms is empowering. But before you dive into setting up shop or launching your online store, there’s one step you shouldn’t skip: creating a business plan.
You might be thinking, “Kailangan pa ba ‘yan?” Absolutely. A business plan is not just for big companies or corporate presentations. Whether you’re running a sari-sari store, launching a café, or starting a tech startup, having a well-thought-out business plan can guide your decisions and help your business grow.
Let’s walk through it step by step. No complicated jargon, just straight-to-the-point, practical advice for Filipino entrepreneurs.
What Is a Business Plan and Why Do You Need One?
A business plan is a written document that outlines your business goals and how you plan to achieve them. Think of it as your roadmap. It helps you stay on track, prepare for obstacles, and make better decisions.
But more than that, it also helps others understand your business—whether you’re applying for a loan, pitching to investors, or seeking government support.
Here’s what a business plan can help you with:
- Clarifying your business idea
- Identifying your target market
- Setting clear financial goals
- Planning your marketing and operations
- Securing funding or support from institutions
One entrepreneur I spoke with launched a small milk tea stall in Pampanga. She didn’t think a business plan was necessary at first. But after her first month of slow sales, she revisited her plan, realized she had skipped market research, and adjusted her pricing and location. Two months later, her daily sales doubled. Sometimes, what seems like a simple adjustment makes all the difference—and it starts with a plan.
When Do You Need a Business Plan?
You need a business plan when:
- You’re just starting your business
- You want to expand or launch a new product
- You’re applying for a loan or grant
- You’re bringing in partners or investors
Even if you’re not doing any of these yet, having a plan gives you clarity. It makes your business feel real—and manageable.
Key Sections of a Business Plan
Let’s break it down. You don’t need a long, complicated document. What matters is that your plan is clear, honest, and based on real information.
1. Executive Summary
This is a short summary of your business. It should include:
- What your business is
- Who your target customers are
- What products or services you offer
- Your short- and long-term goals
Most people write this section last. It’s easier to summarize once you’ve gone through the full plan.
2. Company Description
Describe your business in more detail. Share your mission and vision. What problem are you solving? What makes your business unique?
Also include your business structure. Are you a sole proprietor, a partnership, or a corporation? How long have you been operating? What are your goals for the next few years?
3. Market Research
This section shows that you understand your customers and competitors. It includes:
- A description of your target market
- Their needs, habits, and spending behavior
- Your competitors and how you’re different
- Market size and trends
You can gather data through simple surveys, interviews, or by reviewing industry reports from agencies like the Philippine Statistics Authority or the Department of Trade and Industry.
One business owner I spoke with in Quezon City conducted a survey among students before opening her silog food cart. She found out most students preferred affordable meals under 80 pesos. She adjusted her pricing, and now her cart has a steady lunchtime crowd.
4. Organization and Management
Even if you’re the only one running the business, this section matters. It shows who is responsible for what.
Include:
- A short profile of the owner or founders
- Roles and responsibilities of team members
- Your legal structure and registration status
- Any advisors, consultants, or partners
If you plan to hire in the future, share how you’ll build your team.
5. Products or Services
Describe what you’re selling or offering. What makes your product or service different or better? Include:
- Product descriptions
- Pricing strategy
- Benefits or unique features
- Product life cycle or future product plans
Be clear about what you offer and how it meets the needs of your market.
6. Marketing and Sales Strategy
This section outlines how you’ll attract customers and keep them coming back. It includes:
- Pricing strategy
- Promotion and advertising (online, word of mouth, flyers, social media)
- Sales channels (physical store, website, online marketplaces)
- Customer retention strategies (loyalty programs, customer service)
Think about where your target customers spend time and how they prefer to shop or engage with businesses.
7. Funding Request (If Applicable)
If you’re applying for funding, include:
- How much you need
- What you’ll use the money for
- How you plan to repay it (if it’s a loan)
- What investors will get in return (if applicable)
Be specific. Don’t just say “for startup costs.” Break it down—equipment, inventory, marketing, rent, salaries, and so on.
8. Financial Projections
This section shows that you’ve done the math and understand your numbers. Include:
- Projected income and expenses (monthly or yearly)
- Break-even analysis
- Cash flow forecast
Use real estimates. If you’re unsure, start small and adjust as you go. There are free Excel templates online that can help, or you can ask help from a mentor or accountant.
One tip: keep your projections realistic. It’s better to under-promise and over-deliver than the other way around.
9. Appendix
Add supporting documents like:
- Business permits and registrations
- Product photos
- Market survey results
- Sample menus or brochures
- Contracts or agreements
These don’t need to be included in the main body of the plan, but they help back up your ideas.
Common Mistakes to Avoid
- Skipping research. Don’t assume you know the market. Always validate your ideas.
- Overestimating revenue. Stay conservative with sales forecasts, especially in your first year.
- Ignoring competition. Even if your product is unique, there’s always indirect competition.
- Not planning cash flow. Sales don’t equal cash. Watch your expenses and payment schedules.
- Writing a plan and forgetting it. Revisit and update your plan regularly. Treat it like a living document.
Business Plan Templates You Can Use
You don’t have to start from scratch. There are several Filipino-friendly templates available that are simple, editable, and useful.
These templates include the basic sections and are designed for small business owners, whether you’re a first-timer or already operating.
Final Thoughts
A business plan doesn’t guarantee success, but it gives you a solid foundation. It forces you to think clearly, make informed decisions, and focus your efforts. More importantly, it gives you the confidence to move forward, knowing you’ve done your homework.
As a writer who has spoken to many entrepreneurs across the country, I’ve seen how a simple plan on paper can turn into a thriving sari-sari store, an online brand, or a full-blown family business.
The best time to write a business plan is before you start. The second-best time is now.
MSME Philippines: Your Partner in Growth
At MSME Philippines, our mission is to empower Filipino entrepreneurs with the knowledge and tools they need to succeed. Whether you’re planning your first business or scaling your existing one, we provide practical, localized resources to support you every step of the way.
Explore more guides, templates, and tips designed specifically for micro, small, and medium-sized enterprises in the Philippines. Because building a business is easier when you’re not doing it alone.