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Transcript of 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.??????