PB201 ENTREPRENEURSHIP

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TOPIC 8: BUSINESS PLAN

Define BUSINESS PLAN

A business plan is also known as a working paper, project paper or prospectus.
It is a written document between 25 and 40 pages describing the overall plans of a business in detail
Business plan is the blueprint of the company which is presented in a standard business format
A good business plan convince the reader that the business can produce enough revenue to make satisfactory profit and
is a sound investment opportunity
Importance of a Business Plan

Provide opportunities for entrepreneurs to see and evaluate business ideas or business projects carefully,
objectively and critically.
To provide an overview of the proposed project, whether viable or not
Help entrepreneurs to make estimates and resource requirements of the business properly and efficiently
Entrepreneurs realize the problems that may arise in the implementation of business projects
Explain the duties and responsibilities of employees
Determine the right way of managing the business
Determine the companys perfomance

Importance of Business Plan to Outdoors

Entrepreneurs
-Business plan as a guide in running the business
-The entrepreneur be able to analyze the strengths and weaknesses of the company
Bankers/Financial Institutions
-To assess the potential of the proposed project in relation to the application of business financing
Suppliers
-To get a clear idea of business and financial position for the purpose of evaluating whether to extend credit facilities or
not
Management/Employees
-To understand the goals and purposes of the business and enable them to carry out works as expected by the business
Clients/Customers
-Assess whether the business can offer products or services that are safe, quality, using latest technology and in line with
their lifestyle
Charateristic of a Good Business Plan

Keep the business plan simple

Information should be based on previous studies
Objective should be specific, measurable and achievable within the specified time frame
Know the organizations strengths and weaknesses
Know the competitions strengths and weaknesses
Know the business

PB201 ENTREPRENEURSHIP

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TOPIC 8: BUSINESS PLAN

Format Of A Business Plan

1. Content
-Lists the main headings, tables, schedules and appendices according to the page numbers
2. Executive Summary or Abstract
-Summary of the entire business plan which needs to be highlighted in a clear and concise manner
-It summaries key elements on company objectives, products or services being offered, market potential, project costs
and expected returns.
3. Introduction
-Name of the company
-Nature of the business
-Business location
-The date the business starts its operation
-Factor selecting the proposed venture
-Future prospects
4. Objective
-Clearly state the purpose of preparing a business plan.
-To obtain loan/financial assistance
- Example: This business plan is prepared by ABC Sdn Bhd for the purpose of obtaining working capital loan from Bank
Rakyat in the amount of RM50000.
-To attract capital investments (potential investors)
-To provide guidance in managing the business
5. Business background
-Name of the company
-Addresses
-Telephone number
-Form of business ownership
-Main business activities
-Date of registration
-Equity contribution
-Name of the companys bank (Acc no)
6. Business Owner background
a. Personal particular of owner/partners/directors
-Name of the owner/partners
-Identity card number
-Permanent address
-Correspondence address
-Telephone number
-D.O.B
-Age
-Marital status
-Academic qualification
-Skills
-Experience
b. Partnership agreement
-Name of business, form of business, equity contribution, management and position, death, other matters and signature
of each partner.
7. Organization Plan
-Explains how the business will be managed in order to ensure the objectives of the business can be achieved
-Organization vision and mission
-Organization chart

PB201 ENTREPRENEURSHIP

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TOPIC 8: BUSINESS PLAN

-Schedule of tasks and responsibilities

-List of office equipment and supplies
-Administrative budget/expenditure
8. Marketing Plan
-Activities that are carried out systematically to attract customers to buy companys products or services
-Description of product or services
-Identify target market
-Determine market size
-Identify competitors (Strengths and weaknesses)
-Market share
-Marketing strategy (Pricing, Product, Promotion and Placing)
-Marketing budget
9. Production or Operations Plan
-The description of a business physical location, facilities and equipment, inventory requirements and description of the
manufacturing process
- A good operational plan will ensure the company makes the maximum profit with the lowest possible cost
-Process flow chart
-Production schedule/capacity planning
-Material requirement
-Machine and equipment
-Operation layout plan
-Operational budget
10. Financial Plan
-Description of how the business will be financed and how it will maintain a sound financial condition
-Prepared after all budgets pertaining to marketing, operation and administration are completed.
-Total project cost
-Sources of financing
-cash flow
-income statement
-balance sheet
11. Project Implementation Schedule
-This table is provided to show the stages of events that will happen to business when business done. Usually it shows
the progress of the operation of the idea to reality.-These tables are presented using graphs that clearly show all the
activities that will be made, when the activity will take place and how the relationship between activities.
12. Summary
-Give a statement to convince certain parties why the project should be continued or loans must be given or licenses must
be approved and so on.
13. Appendix / Supporting Document

-All relevant documents include support documents from financial institutions, copies of course certificate, permit, license
and brochures or advertisements of the product and services.