note-pb201-entrepreneurship-chapter8 (1).docx

8/10/2019 note-pb201-entrepreneurship-chapter8 (1).docx

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CHAPTER 8

BUSINESS PLANINTRODUCTION

By: Engr. Muhammad Muizz Bin Mohd Nawawi


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BUSINESS PLAN

Business Plan is a written document between 25to 40 pages describing the :

Business or project to be carried out, businessdirection and how it will develop acomprehensive.

Studies have been made and steps to be taken in

future to develop the business andPredictions, expectations, and how the

implementation of business strategies.


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Other names for Business Plan

business master plan, paper, project paper orprospectus

map that will determine the direction andstrategy of how success is achieved by the

entrepreneur.


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IMPORTANCE OF THE BUSINESS PLAN

To Entrepreneur

Provide opportunities for entrepreneurs to see andevaluate business ideas or business projects

carefully, objectively and critically.

To provide an overview of the proposed project, whetherviable or not

Help entrepreneurs to make estimates and resourcerequirements of the business properly and efficiently

Entrepreneurs realize the problems that may arise in

the implementation of business projects


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Making the guidelines for managing daily business

Make predictions of sales, expenses and cash flowbusiness

Explain the duties and responsibilities of employeesand the needs and expectations of business

Evaluatebusiness performance

Plan for development of new products

Make basic recommendations for fundingapplications


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Importance of Business Plan For The Outdoors

1. Banker or bankers To assess the potential of the proposed project in relation

to the application of business financing

2. Supplier

To get a clear idea of business and financial position forthe purpose of evaluating whether to extend creditfacilities or not

3. Staff

To understand the goals and purposes of the business

enable them to carry out works as expected by thebusiness,


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4. ConsumerAssess whether the business can offer products or

services that are safe and convincing

if the manufacturing process guarantees in terms ofsafety and health

5. Investor To assess the business information and provide greater

confidence to prospective investors or investors toinvestwith him.


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BASIC FEATURES OF A GOOD BUSINESS PLAN

Facts and information used is correct and current

available - resources that can be trusted as businessrecords and internal data, government statistics,marketing research data and others.

Information or data collected will be analyzed in detailand justified

Information and data that changes from time to time be

modified and updated. Having a set of financial statements: cash flow Performa,

end accounts

Focusing on consumer needs


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BASIC FEATURES OF A GOOD BUSINESS PLAN

Displaying the coordination of all functions and businessactivities

act as a 'one team' to achieve the targets specified.

Shows the determination, commitment and competenceof entrepreneurs or managers involved

Have an action plan (action plan) a clear and workable


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Why Business Plan Failed

objective to be achieved is not reasonable

No measurable goals and fuzzy

Entrepreneurs are not fully committed to Business Planprovided

entrepreneur with less experience in business planning

to easy with threats and weaknesses of the business

Does not meet the requirements of consumers


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CHAPTER 8

BUSINESS PLAN

FORMAT

By: Engr. Muhammad Muizz Bin Mohd Nawawi


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Mission Statement

In general, the information in the missionstatement is as follows :-

Established business reasons

Products or services offered

Clients or customers for business

Geographical area of marketingCompetitive advantages, products or services

offered.


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A formal Business Plan contains the following :-

1. Content2. Executive Summary or Abstract3. Introduction4. Objective5. Business background6. Business Owner background

7. Project background8. Organization Plan9. Marketing Plan10.Production or Operations Plan11.Financial Plan12.Project Implementation Schedule

13.Summary14.Appendix / Supporting Document


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1.Content lists the contents of the main topics page.

2.Executive Summary/ Abstract highlight the important matters of the business plan.

it should be possible to arouse the interest of thereader to examine the contents of the business planhas been prepared.


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3.Introductioni. state the type of business.

ii.business location

iii.date the business is run

iv.background and the pattern of trade which theindustry. (Information needs to be supported withreal facts and realistic)

4.Objective Clearly state the purpose of preparing a business

plan. For example, to apply for a capital funding or a

business site of Bank Pembangunan MalaysiaBerhad. etc.


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5.Business background

i. Provide the following information :-ii.business nameiii.business addressiv.mailing address(if different)v.telephone number

vi.business formvii.the main activitiesviii.start date or want to start a businessix.business registration number

x.initial capitalxi.name of bankxii.bank account number


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6.Owner background

i. Information on each owner or partner of the following should be:-

ii. full nameiii.identity card number

iv.agev. gendervi.Fixaddressvii.telephonenumberviii.maritalstatusix.courses attended

x. skillsxi.experiencexii.current jobxiii.other business (if any)


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7.Project backgroundi. State information about the location of business :-

ii.Physical position of the projectiii.Buildings (type of structure, condition, shape, sizeand value of buildings)

8.Organization Plan/ Administration Stated mission and objectives of the organization

Present organizational structure in the organizationchart.


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Table Position and number of labor.

No. Position/designation No of workers

1. General Manager 1

2. clerk 3

3 salesman 10

Job Description Schedule.

designation Main responsibility

Financial Manager 1.Prepare Annual Budget for business.

2.Provide business Financial Reports

3.Control and manage the use of business

resources.

4.Coordinate personal ledger in the financial.


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Schedule employee remuneration Reply Service.

Designation No Monthly

Salary

EPF SOCSO Jumlah

General

manger

1 RM5000 RM650 RM100 RM5750

Financial

manager

1 RM2500 RM325 RM50 RM2875

Total RM8625


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List of Furniture and Office Needs

Types No. Price (RM)

Computer 2 8000

Printer 2 1000

Photostat Machine 1 5000

Total 14000


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List of Administrative Expenses

Item Property

expenses

Monthly

expenses

Other expenses

Services Salaries and

Remuneration Reply

RM8625

Furniture and

fixtures

RM14000

Rental RM2000


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9.Marketing Plan

Description of products / services offered relate to therequirements and needs.

Customer profile of the target group of customers.

Market size in terms of sales units or Ringgit Malaysia orboth.

Key competitors in the market. List the strengths andweaknesses of their status and indicate the proposed marketshare and key competitors

Monthly sales forecasts for the first year of business andannual sales forecasts for years 2 and 3. State the form ofeither cash sales, credit, or both.

Marketing strategies that will be used to achieve theforecasted sales. Examples of products strategy, pricingstrategy, promotional strategy and strategy circulation.


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Details of the marketing expenses.

Details Property

expenses

(RM)

Monthly

expenses

(RM)

Other

expenses

(RM)

Vehicle RMxxxx

Promotion RM xxxx

Insurance RM xxx


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10.0 Production Plan / Operations This section is to be provided to businesses in the form of

processing or production.

Production processes in the process flow chart Production unit or the operating hours of business with sales

forecasts based on the Marketing Plan.

Monthly material requirements in a table

State estimates of monthly purchases for the first year and the

estimated annual buying materials for years 2 and 3.

Material

Type

Quantity

used

Stock Price per

unit

(RM)

Total

purchases

(RM)

Sand 10000 tone 500 tone RM xxx RM xxxx


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List the position and amount of laboroperations and their remuneration.

Designation No Monthly

Salaries

EPF SOCSO Total

Production

operator

20 RM xxx RM xx RM xx RM xx


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List of machinery and equipment in the tableas follows: :

Types Supplier Price per

unit

No. Total

Price

Sewing

machine

Kedai

Heong

RM xx 3 RM xxx


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Plan the location of production activities or operations.

Overhead operations that include water supply,

electricity, telephone and other who constitute theoperation.

A sketch of the layout area of operations and state the

main factors taken into account in planning the layout.


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List all items in a table of operating expenses.

Item Property

expenses

Monthly

expenses

Other

expenses

Machine RM xxx

Salary RM xxx


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Predict and know the financial position of thebusiness by providing Performa Cash Flow.

Predict and know the profit / loss of business at theend of the accounting period to prepare PerformaProfit and Loss.

Predict and know the whole financial position atyear-end accounting by providing the PerformaBalance Sheet.

Providing Fixed Asset Depreciation Schedule,

Schedule of Loan Repayment (if any) and HirePurchase Installment Fee Schedule (if any).


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12.Project Implementation Schedule

This table is provided to show the stages of eventsthat 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 clearlyshow all the activities that will be made, when the

activity will take place and how the relationshipbetween activities.


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13.Summary Give a statement to convince certain parties why the

project should be continued or loans must be given orlicenses must be approved and so on.

14.Appendix / Supporting Document

If any, must be accompanied by documents to support astatement specified in the body of the Business Plan. Forexample and Procedure Memorandum of Association.


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Questions.??????

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