Starting a business is exciting, but it also requires careful planning.
One of the most important first steps is to create a smart business plan.
A business plan is your written guide to success.
It shows your goals, how you’ll reach them, and what resources you’ll need along the way.
It’s for aspiring entrepreneurs, small business owners, and anyone looking to apply for funding or register with the Department of Trade and Industry (DTI).
Creating a plan doesn’t cost anything, but the benefits are priceless.
It helps you stay focused, avoid costly mistakes, and attract investors or partners.
Whether you’re planning to open a sari-sari store, launch an online shop, or start a food business, knowing how to craft a business plan and a smart one, at that, is crucial to the success of your venture.
1. Start With Your Vision: Know Where You Want to Go
Think of your business vision as the destination on your map.
It tells you where you’re headed and why you’re doing this in the first place.
Ask yourself these questions:
• What is my business about?
• Who do I want to serve?
• Why does this matter to me and others?
Write a mission statement that answers those questions.
For example: “To provide affordable and nutritious meals for busy workers in my barangay.”
Then, add your long-term goals.
These should be based on your values and what success looks like to you in 5 or 10 years.
Having a strong vision gives your plan purpose.
It also keeps you motivated when things get tough.
2. Understand the Market: Do Your Homework
A smart plan doesn’t guess—it’s based on real information.
Before you open your doors, do some market research.
Here’s how:
• Study the industry. What are the current trends? Are people spending more or less on what you offer?
• Look at competitors. What are they doing well? What can you do better or differently?
• Know your customers. Who are they? Where do they live? What do they need that isn’t being met?
You don’t need fancy tools.
Sometimes, talking to people in your community, checking prices in nearby stores, or observing foot traffic can tell you a lot.
At the end of this research, set your SMART goals:
• Specific: “Sell 100 milk teas per day.”
• Measurable: “Earn ₱15,000 per week in the first quarter.”
• Achievable: Make sure you can actually do it with your current resources.
• Relevant: Goals should match your business type.
• Time-bound: Set deadlines like “by end of month” or “within 6 months.”
3. Choose a Business Model That Works
Now that you understand your market, decide how your business will earn money.
This is your business model.
It should include:
• Products or services: What are you selling?
• Pricing strategy: How much will you charge? Will it be affordable, premium, or in between?
• Sales channels: Will you sell online, in person, or both?
• Operations: Where will you source your supplies? How will you handle delivery or logistics?
• Cost structure: List your fixed costs (like rent) and variable costs (like ingredients or packaging).
For example, if you’re opening a home-based bakery:
You might sell cakes online through Facebook and deliver using a motorcycle.
You’d budget for flour, sugar, electricity, and delivery fees.
Your pricing should cover your costs and leave room for profit.
This part of your plan helps you avoid overspending and plan for sustainability.
4. Build a Marketing Plan That Reaches the Right People
You might have the best product—but if people don’t know about it, they won’t buy it.
That’s where your marketing plan comes in.
A good marketing plan answers these questions:
• Who are my ideal customers?
• Where do they spend their time—online or offline?
• How can I catch their attention?
Set SMART marketing goals like:
• “Reach 500 Facebook followers in 2 months.”
• “Get 10 new inquiries per week from social media.”
• “Partner with 3 influencers for giveaways by next quarter.”
Marketing tools to consider:
• Social media (Facebook, TikTok, Instagram)
• Word of mouth (referrals from friends and family)
• Promos or discounts (soft opening or buy-1-take-1)
• Printed flyers or tarpaulins (for local areas)
Choose what fits your budget and audience.
Keep track of what works and adjust as needed.
5. Plan Your Finances: Don’t Leave Money to Chance
Finances are a big part of your business.
Without a plan, your earnings might come in—but go out just as fast.
You’ll need to include basic financial projections, even if they’re estimates.
Start with:
• Startup costs: equipment, permits, tools
• Monthly costs: rent, utilities, staff wages
• Projected income: sales per day, week, or month
• Break-even point: the point where your income covers all expenses
• Profit targets: how much you plan to keep after costs
Also include a funding plan if you’ll apply for a loan or ask family to invest.
Show them how you’ll use the money—and how you’ll pay it back.
Use simple tables if needed.
Even a handwritten breakdown is better than none.
6. Set a Clear Timeline With Milestones
You now have your goals, market research, and financial plans.
The next step is to turn your ideas into action with a timeline.
This helps you stay on track and measure progress.
Break your plan down into smaller steps like:
• “Week 1: Finalize product list and pricing”
• “Week 2: Register with DTI and get permits”
• “Week 3: Set up online store and Facebook page”
• “Week 4: Start soft launch with friends and family”
Link these to your SMART goals.
If your goal is to earn ₱10,000 in the first month, your timeline should support that.
Also include buffer time.
Unexpected delays can happen—power outages, supplier issues, or weather problems.
Planning ahead gives you time to adjust.
Frequently Asked Questions
- Do I need a business plan even for a small home business?
Yes. A business plan helps you stay focused, track your money, and prepare for growth, no matter how small your business is. - Is there a free template I can use?
Yes. You can download templates from DTI’s website or use free planners from Go Negosyo and local business development offices. - Can I change my business plan later?
Absolutely. Your plan should grow with your business. Review and adjust it every few months or after big changes. - How long should a business plan be?
It depends. A short, clear plan is often better than a long, confusing one. Focus on clarity and action over length.
Conclusion
Creating a smart business plan takes effort, but it doesn’t have to be overwhelming.
Break it into simple steps.
Focus on what matters most: your vision, your customers, your income, and your timeline.
Whether you’re just starting out or trying to grow, your plan can serve as your guide.
It reminds you of your “why” and keeps you moving toward your goals.
Stay flexible, keep learning, and update your plan as your business evolves.
You’ve got this.