GDB3023 ENGINEERING ECONOMICS AND ENTREPRENEURSHIP MAY 2020

GDB 3023 ENGINEERING ECONOMICS AND ENTREPRENEURSHIP

BUSINESS PLAN – PROJECT GUIDELINES

Project Objectives
At the end of this project, students should be able to:
1. apply engineering economic decision making to realistic problems
2. prepare a realistic business proposal
3. improve communication skills both in presentation and report writing

Problem Statement
Student are expected to work in teams consisting of 3-5 students each. Each
project team is required to identify a project pertinent to one of the following
engineering economic decision problems and develop a business plan for the
following business sector. The project must specify the locality of the business,
potential market and develop the appropriate business plan as deemed suitable
for securing potential funding from either established financial institutions,
venture capital or private funds. Some possible business sectors suggested
(but not limited to) include:
1. Food and Beverages
2. Printing and Stationery Services
3. Computer Equipment and Repair
4. Leisure and Sports
5. Specialty Services (open selection)

Project Procedure
Project teams must follow this decision-making process:
1. Recognize potential market and localities
2. Define the business goals or objectives
3. Collect all the relevant information and market survey
4. Identify a set of feasible decision alternatives
5. Select the decision criterion to use
6. Select the best alternative
7. Document and present the business plan, company structure, financial
plan, business activities and all relevant data,

Project Evaluation Requirements

Project assessment will include the following deliverables:

1. Project title proposal:

Recognize a decision problem, define the project objectives and tasks,
plan the project schedule, team members and their responsibilities, etc.
Group project title proposal (2 page summary) is due on 20 July 2020.

2. Oral presentation:
Each business team will have 15 minutes to present its business
proposition, market analysis, business plan, operational plan and
financial plan and supporting data. Every team member is required to
participate. MS Power Point is required for this presentation. All
GDB3023 ENGINEERING ECONOMICS AND ENTREPRENEURSHIP MAY 2020

students should be prepared to evaluate the performance of his/her

teammates. Presentation will be conducted in Week 11.

3. Written final report:

Final report must be submitted before 5 pm 21 August 2020. The final
report should (not exceed 50 pages) include the following:
0. Cover page
1. Executive Summary (100 ~ 150 words):
(Executive summary must introduce the company, address the
market and consider financial obligations). It may cover the following
areas
1. Objective
2. Mission
3. Keys success factors

– Table of Contents:
(Business plan body should include following sections)
2. Company Summaries
Company profile, business type, corporate structure and ownership
management team and organizational plan must be presented in
detail. It must also discuss company startup: this includes expenses
and cash needed to support operations until revenues reach an
acceptable level. Projection of the company's liabilities that may be
in the form of outside private investors and management investment
must be addressed. Potential borrowing from local banks must be
supported by accurate document on the principal to be paid off within
recovery periods as properly planned.

Figure 1: Sample Startup Requirement

GDB3023 ENGINEERING ECONOMICS AND ENTREPRENEURSHIP MAY 2020

Figure 2: Sample Startup Funding

3. Services
Detailed description of product and services proposed, business
sector, specialty etc. Description of the product or service and its
unique features should be proven effective and detailed.

4. Industry and Market Analysis Summary

Detailed discussion of market analysis and supported with accurate
data. It must include among others, market segment proposed,
existing businesses, potential competitors and potential customer
buying patterns.

Figure 3: Sample Market Projection

GDB3023 ENGINEERING ECONOMICS AND ENTREPRENEURSHIP MAY 2020

5. Strategy and Implementation Summary

Detailed discussion of business, operational and marketing plan
must be presented. It may include among others sales forecast.

Figure 4: Sample Sales Forecast

6. Management Summary
Management summary must discuss manning requirements
including salaried personnel. Organisational structure and
management team must be clearly provided.

Figure 5: Sample Personnel and Salary

GDB3023 ENGINEERING ECONOMICS AND ENTREPRENEURSHIP MAY 2020

7. Financial Plan
This is the most important part of the report. It must include among
others all key assumptions made, base for projections and key
success factors. It must include among others:
• Breakeven Analysis
• Projection of Profit and Loss
• Projected Cash Flow
• Projected Balanced Sheet, and
• Business Analysis and Plan
• Marketing Plan
• Operational Plan

Figure 6: Sample Break Even Analysis

Figure 7: Sample Profit and Loss

GDB3023 ENGINEERING ECONOMICS AND ENTREPRENEURSHIP MAY 2020

Figure 8: Sample Cash Flow

– Appendix/Attachment: as required
– Reference list