assoc. prof. dr. nik maheran nik muhammad, (cfp, citm, ibbm)

Assoc. Prof. Dr. Nik Maheran Nik Muhammad, (CFP, CITM, IBBM)

PRESENTATION OUTLINE

Definition of planningWhat is business planningHow to write a business planOperational planOperational and Business ModelThe Business plan and operational plan cycle

PLANNINGPlanning is "identifying and selecting

appropriate goals and courses of action.“Three steps of planning exist.

1. First, determine the organization's mission and goals. defining the business and establishing major

milestones.

2. Secondly, formulate a business strategy. analyze the current situation and develop strategies

that correspond to it.

3. Thirdly, implement the strategy. allocate resources and responsibilities to achieve those

strategies.

Mission Statement

A mission statement occurs during the initial planning stage of determining the organization's mission and goals.

A mission statement shows how an organization is unique and important.

it distinguishes and differentiates the organization from competitors.

A mission statement is brief.

BUSINESS PLAN• A business plan is a formal statement of a set of

business goals;

• The business plan helps guide the direction of any new company.

• Business Plans are most often created for new companies looking for start-up funding,

• It may also contain background information about the organization or team attempting to reach those goals

Business plan…..cont.Business Plans: The Company Description

Without too much superfluous detail, the company description section of the business plan should clearly define the basics of the company or business.

WRITING A BUSINESS PLANInternal Document that:

Outlines a business direction, philosophy, and purpose;

Examine its current status and terms of its strength, opportunities and threat (SWOT);

Set long term objectives, and formulates short term tactics to reach them.

Business plans have many different presentation formats, business plans typically cover five major content areas:

1.Company description2.An Operational plan3.A marketing plan4.A financial plan5.Governance/management team

Writing a business plan….cont.

Writing a business plan….cont.When you write a company description, you should cover the following: Company name Form of organization. (Sole Proprietor, Partnership, etc.) Ownership — full name of the owner/owners Location, offices headquarters, branches. Explain the benefits of the

location Definition of the business. The products or services will be outlined without

too much detail. A more thorough description will appear in the chapter on products. It will also describe the reasons for and advantages of the choice of product or service.

History of the company. If the business is new, give a short historical sketch of the idea behind the foundation of the company. For an already established business, explain its origin, and the development of the product or service over time. Include some historical data on sales and profits. After giving the historical background, outline the current status of your business. State the business history and purpose of the company clearly.

Company goals — plans to be accomplished over coming years (up to five years in advance), and how these are going to relate to the investment you are seeking. Keep the the goals realistic and credible.

Future plans for the growth and expansion of the company. Will you keep the business smal? Do you plan to expand extensively? Link this to the projected investment. Once again, be moderate and keep things simple and believable.

OPERATION PLAN

Presents the company’s action plan to execute its vision

Details of operation plan:Everyday process (Short Term Process)Business Milestone (Long Term Process)

Everyday Process (short term)Customer service - marketing plan

Systems to provide customers with product and services

CONCEPT vs. REALITY Operational plan must prove that managerial team

can execute concept better than anyone else

Business milestone (Long Term)Company vision – financial plan Key milestone

When will the product be launched and available in the market place

Revenue milestone will be attained Key partnership will be executed Key customer contract will be secured Key financial event will occur Key employees will be hired

Targeted date

MARKETING PLANPlan that details a company's marketing

effort; also called marketing strategy. The plan specifies the marketing goals and

objectives to be achieved over a specific time period.

The strategies will involve the proposed development of :

the product(s), the definition of the target market(s), and the types of media and sales promotions to be used.

FINANCIAL PLANFinancial plan section is the section that

determines whether or not your business idea is viable, and

Is a key component in determining whether or not your business plan is going to be able to attract any investment in your business idea.

Indicate from: PROFORMA FINANCIAL STATEMENT BUSINESS FORECAST CASH FLOW ANALYSIS

GOVERNANCEPartnershipAlliancesBusiness Ventures

OPERATIONAL and BUSINESS MODELAn operational model is a demonstration of

a process

The term business model describes a broad range of informal and formal models that are used by enterprises to represent various aspects of business, such as:

operational processes, organizational structures, and financial forecasts

Components of a business modelInfrastructure

core capabilities: The capabilities and competencies necessary to execute a company's business model.

partner network: The business alliances which complement other aspects of the business model.

value configuration: The rationale which makes a business mutually beneficial for the industry and its customers.

Components of a business model…cont

Offering value proposition: The products and services a business offers.

Components of a business model…cont

Customers Target customer: The target audience for a business'

products and services.

Distribution channel: The means by which a company delivers products and services to customers. This includes the company's marketing and distribution strategy.

Customer relationship: The links a company establishes between itself and its different customer segments. The process of managing customer relationships is referred to as customer relationship management.

Components of a business model…cont

Finances Cost structure: The monetary consequences of the means employed in the business model.

Revenue: The way a company makes money through a variety of revenue flows. A company's income.

THE BUSINESS PLAN AND OPERATIONAL PLAN CYCLE

BUSINESS PLAN:

Rational of doing business

OPERATIONAL PLAN:

Plan for implementation

1. Where are we now?

2. What are our goals?

3. What is our rational/ justification for them?

4. What are the different avenue to get them?

5. What is the best avenue and what will it involved?

7. What resources are required?8. What are the majorChallenges to successAnd how can they be Managed?

9. What criteriaShould we use toEvaluate and Determine if we haveAchieve our objective?

6. How long will itTake and what are theKey milestone inGetting them?

YOUR BUSINESS PLAN………….

BE AGGRESSIVE BUT CREADIBLE !!!

THANK YOU

QUESTIONS?????