Assoc Prof Dr Abdullah Ibrahim

BUSINESS PLAN
Introduction
A business plan is a written document that serves
as a blue print and guide for a proposed business
project that one intends to undertake. The
information gathered regarding the project is
used in the Business Plan to predict viability,
forecast success and propose strategies for the
project
PURPOSES
To allow the entrepreneur to view and evaluate
the proposed business venture in an objective,
critical and practical manner
To analyse and evaluate the viability of a
proposed venture
To convince relevant parties of the investment
potential of the project
As a guideline for managing the business
To allocate business resources effectively
WHO NEEDS A BUSINESS
PLAN?
The entrepreneur
Investors
Financial institutions
Suppliers
Customers
Company staff
Information Gathering for the Business Plan
Information gathered for a business plan must
give an accurate picture for projects viability and
sustainability
The entrepreneur needs to collect and analyse
relevant data
Two types of information - primary and
secondary information

Primary Information
Obtain through interviews, surveys and
observations involving people that the project
targets as users or recipient of the project
outcome
Specific and concurrent information

Secondary Information
Extracted from sources that are available in
printed form (newspapers, jounals, annual reports
and survey results) or electronic form (television,
radio or internet)
Cheaper and easier way but not concurrent
BUSINESS PLAN FORMAT
Cover letter stating hopes and willingness to
furnish additional materials to facilitate better
understanding of the project
Cover page Introductory information including:
Title of the Business Plan
Name of the business and business address
Name of the writer(s)
Date of submission
BUSINESS PLAN FORMAT
Table of Contents list of main headings, tables,
schedules and appendices according to page
numbers
Executive Summary to convince and motivate
the reader to spend time going through the whole
plan. Need to highlight important components
such as the product and service being offered,
market potential, project management, project
cost and expected returns
BUSINESS PLAN FORMAT
Main Body of the Business Plan Essential
information such as administrative, marketing,
operation and financial plans
Appendices contains relevant supporting
documents such as:
Suppliers quotation
Agreement letter
Letter of references
Research findings
MAIN BODY OF THE BUSINESS
PLAN
Introduction
Purpose
Company background
Owner/partners background
Location of the business
Administrative plan
Marketing plan
Operations plan
Financial plan
Conclusion
Introduction
Name of the company
Nature of business
Industry profile
Location of the business
Date of business commencement
Factors in selecting the proposed business
Future prospect of the business
Purpose
Objective of the Business Plan must be stated
clearly
Example of financial loan:
This business plan is prepared by ABI Sdn Bhd
for the purpose of obtaining working capital loan
from BIMB for the amount of RM50,000. OR

Purpose
Example as a guide for the entrepreneur to
manage the business:
This business plan is prepared by ABI Sdn Bhd
as a guideline for managing the proposed
venture.
A Business Plan can have more than one
objective but the main objective should be the fist
to list
Company Background
a. Name of the Company
b. Business Address
c. Correspondence Address (include website/e-
mail address)
d. Telephone Number
e. Form of Business
f. Main Activity or Activities
g. Date of Commencement
h. Date of Registration
i. Registration Number
j. Name of Bank
k. Bank Account Number
Owner or Partners Background
a. Name of the Owner/Partners
b. Identity Card Number
c. Permanent Address
d. Correspondence Address (include website/e-
mail address)
e. Telephone Number
f. Date of Birth
g. Age
h. Marital Status
i. Academic Qualifications
j. Course Attended
Owner or Partners Background
k. Skills
l. Experience
m. Present Occupation
n. Previous Business Experience
Location of the Business
Physical location of the project (e.g. whether it is
located adjacent to the main roads and other
designated premises)
Building (e.g. type, structure, condition, size and
cost of the building)
Basic amenities (i.e. water, electricity, telephone
lines)

Administrative Plan
Introduction to the Organisation
State vision, mission and objectives
Organisation Chart
Show the structure according to the departments
and/ or positions in the company.
Show the lines of authority and responsibility
The entrepreneur is encourage to present the
organisation in the chart form

Administrative Plan
Manpower Planning
List of positions and staff for each position in table
form (see Table 1)
Schedule of Tasks and Responsibilities
Every post should come with the descriptions of
tasks and responsibilities (Table 2)
Schedule of Remuneration
List the salary and contribution that the company
has to allocate to different Provident Funds (Table
3)
List of Office Equipment (Refer to Table 4)

Administrative Plan
Administrative Budget
Fixed Assets-refer to the investment made in the
purchase of assets that will be used in the
organisation for a period of more than one year. Eg.
Furniture, fittings, premises and renovation
Monthly Expenses-refer to the payments that have
to be made every month. Eg. Remuneration,
utilities, rental, travelling expenses and office
supplies
Other Expenses-refer to the expenses that do not
fall into the above two categories. Incurred once a
year or on a periodic basis. Eg. Vehicle road tax,
business registration fees, deposits
Refer to Table 5

Table 1. Position and the Number of Staff
Position Number of Staff
General Manager 1
Sales Officer 1
Accounts Clerk 1
Operations Officer 1
Administrative Clerk 2
Table 2. Schedule of Tasks and Responsibilities
Position Main Tasks
General Manager To plan, implement and control the
overall management of business

To plan and monitor the strategic
progress of the business

To be accountable for the overall
performance of the business
Table 3. Remuneration for Administrative Staff
Position No. Monthly
Salary
EPF
Contribution
(13%)
SOCSO
(2%)
Amount
General
Manager
1 4 000 520 80 4 600
Account
Clerk
1 1 000 130 20 1 150
Administra
tive
Clerk
1 700 91 14 805
Table 4. List of Furniture, Fittings and
Equipment
Item Quantity Price per Unit Total Cost
Office
Furniture
2 sets 2 000 4 000
Personal
Computer
2 sets 3 000 6 000
Office
Renovation
- - 10 000
Table 5. Administrative Budget
Fixed Assets
Expenses
Monthly
Expenses
Other Expenses
Furniture and
Fittings
4 000 - -
Salaries - 8 050 -
Rental - 3 000 -
Rental Deposit - - 9 000
Utilities Deposit - - 1 000
Marketing Plan
a. Product or Service Description
b. Target Market
c. Market Size-units of goods or sales (RM)
d. Competition
e. Market Share-estimated as a percentage of the
market size. Based on companys strengths and
weaknesses
f. Sales Forecast-at least for the first year and
extended to 2
nd
and 3
rd
year (Table 6)
g. Marketing Strategy
h. Marketing Budget (see Table 7)
Table 6. Sales Forecast
Year Month Sales Forecast
1 1 70 000
2 70 000
3 70 000
4 77 000
5 77 000
6 77 000
7 70 000
8 65 000
9 65 000
10 70 000
11 70 000
12 70 000
2 900 000
3 1 000 000
Table 7. Marketing Budget
Item Fixed
Assets
Expenses
Monthly
Expenses
Other
Expenses
Van 70 000
Promotion 400
Vehicle
Insurance
2 000
Operation Plan
Process Flow Chart
Production Schedule-product or service
Material Requirements
Manpower Requirements
Machine and Equipment
Opeartion Layout Plan
Location
Operation Overheads-utilities
Operation Budget

Financial Plan
Project Implementation Cost Schedule
Source of Fund Schedule
Fixed Assets Depreciation Tables
Loan Amortisation Schedule (if relevant)
Hire Purchase Repayment Schedule (if relevant)
Proforma Cashflow
Proforma Profit and Loss
Proforma Balance Sheet