BUSINESS PLAN OUTLINE

COVER PAGE

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 FACULTY OF BUSINESS AND MANAGEMENT

DIPLOMA IN BANKING (BM112)

BMD6Ab

FUNDAMENTALS OF ENTREPRENUERSHIP

ENT 300

BUSINESS NAME (Example : FURNITURISTIC ENTERPRISE)

PRODUCT NAME (ARMADILLO)

PREPARED FOR:

DR. ATHIFAH NAJWANI HJ SHAHIDAN

PREPARED BY:

ALI BIN AHMAD 2010456789

HALIJAH BINTI SAAD 2010123456
ABU BIN BAKAR 2010XXXXX
AMIN BIN SALEH 2010XXXXX
AMINAH BINTI ABU 2010XXXXX

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LETTER OF SUBMISSION

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Diploma in Banking (BM112)
Faculty of Business and Management
Universiti Teknologi MARA Perlis
02600 Arau Perlis

15 June 2020

Miss Zulaiha Binti Ahmad

Lecturer of Fundamentals of Entreprenuership (ENT300)
Faculty of Business and Management
Universiti Teknologi MARA Perlis
02600 Arau Perlis

Madam,

Submission of the Business Plan (ENT 300)

Attach is the business plan title “FURNITURISTIC ENTERPRISE – ARMADILLO” to

fulfill the requirements as needed as university requirements.

Below is the list of the group members that involved in completing this business plan:

Ali Bin Ahmad 2010456789

Halijah Binti Saad 2010123456
Abu Bin Bakar 2010XXXXX
Amin Bin Saleh 2010XXXXX
Aminah Binti Abu 2010XXXXX

Thank you,

Yours sincerely

………………………
Ali Bin Ahmad
General Manager

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ACKNOWLEDGEMENT

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ACKNOWLEDGEMENT

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TABLE OF CONTENTS

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 TABLE OF CONTENTS

Page Number

LETTER OF SUBMISSION

ACKNOWLEDGEMENT

TABLE OF CONTENT

EXECUTIVE SUMMARY

1 INTRODUCTION
1.1 Name of Business xxx
1.2 Nature of Business xxx
1.3 Location of the Business
1.4 Date of Business Commencement

2 PURPOSE
2.1 To evaluate the project viability and growth potential
2.2 To apply for loans or financing facilities from the relevant financial
institutions
2.3 To act as a guideline for the management of the proposed business
2.4 To allocate business resources effectively

3 BUSINESS BACKGROUND
3.1
3.2
3.3

4 BACKGROUND OF PARTNERSHIPS
4.1
4.2

5 MARKETING PLAN
5.1
5.2

6 OPERATIONAL PLAN
6.1
6.2
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7 ADMINSTRATION PLAN
7.1
7.2

8 FINANCIAL PLAN
8.1
8.2

APPENDICES

PARTNERSHIP AGREEMENT

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EXECUTIVE SUMMARY

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EXECUTIVE SUMMARY

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INTRODUCTION

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1. Introduction (Arial 12, BOLD)

1.1. Name of the Business (Arial 11, Italic)

1.2. Nature of Business

1.3. Location of the business

1.4. Date of business commencement

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PURPOSE

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2. Purpose of preparing the business plan (Arial 12, BOLD)

2.1. To evaluate the project viability and growth potential

2.2. To apply for loans or financing facilities from the relevant financial institutions

2.3. To act as a guideline for the management of the proposed business

2.4. To allocate business resources effectively

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BUSINESS BACKGROUND

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3. Business Background (Arial 12, BOLD)

Table 3.1 Business Background

Name of the Business

Business Address
Correspondence Address
Website
E- mail
Telephone Number
Fax Number
Form of Business
Main Activity
Date of Commencement
Date of Registration
Registration Number
Name of Bank
Bank Account Number

3.1 Vision and Mission

3.1.1 Vision

3.1.2 Mission

3.2 Organizational Chart

(GM + Head of Department)

3.3 Logo and Motto

3.3.1 Logo

Logo description

3.3.2 Motto

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PARTNERSHIPS BACKGROUND

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4. Background of Partnership (Arial 12, BOLD)

4.1 General Manager

Table 4.1 Background of General Manager

Name of Partners
Identity Card Numbers
Permanent Address
Correspondence Address
E- Mail
Telephone Number
Date of Birth
Marital Status
Academic Qualification
Course Attended
Skills
Experiences
Present Occupation
Previous Business Experience

4.2 Administration Manager

Table 4.2 Background of Administration Manager

Name of Partners
Identity Card Numbers
Permanent Address
Correspondence Address
E- Mail
Telephone Number
Date of Birth
Marital Status
Academic Qualification
Course Attended
Skills
Experiences
Present Occupation
Previous Business Experience

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4.3 Marketing Manager

Table 4.3 Background of Marketing Manager

Name of Partners
Identity Card Numbers
Permanent Address
Correspondence Address
E- Mail
Telephone Number
Date of Birth
Marital Status
Academic Qualification
Course Attended
Skills
Experiences
Present Occupation
Previous Business Experience

4.4 Operation Manager

Table 4.4 Background of Operation Manager

Name of Partners
Identity Card Numbers
Permanent Address
Correspondence Address
E- Mail
Telephone Number
Date of Birth
Marital Status
Academic Qualification
Course Attended
Skills
Experiences
Present Occupation
Previous Business Experience

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4.5 Financial Manager

Table 4.5 Background of Financial Manager

Name of Partners
Identity Card Numbers
Permanent Address
Correspondence Address
E- Mail
Telephone Number
Date of Birth
Marital Status
Academic Qualification
Course Attended
Skills
Experiences
Present Occupation
Previous Business Experience

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MARKETING PLAN

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5. Marketing Plan (Arial 12, BOLD)

5.1 Marketing Objectives

(i) New business

 Introduce new product – state the product, to whom the product offer,

reason product have been introduce, benefit of the product

 Estimate sales and market acceptance

5.2 Description of products (Arial 11, Italic)

This section describes the products offered by the business in detail. The proposed

products or services should be related to the needs and wants of the target

customers

Table 5.2.1 Product description

Product Description
Features  Size :
 Shape :
 Flavour :
 Odour :
 Packaging :
 Colour :
Materials 
Benefits 


Table 5.2.2 Product illustration

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 5.3 Target market (Arial 11, Italic)

Here, the customers’ profile in the target market area is explained. The entrepreneur

should identify the different market segments that exist in the same market.

5.3.1 Geographic Segmentation (in a paragraph)

- Identify area + sub area (Ex : Perlis – Arau and Kangar)

- Location (Ex : Bakery shop, Restaurant)

5.3.2 Demographic Segmentation (in a paragraph)

Identify the characteristic of customer such as age, gender, income, race etc

5.3.3 Psychographic Segmentation (in a paragraph)

Identify whether the product offered based on this variables: motives, interest,

personality, and lifestyle

5.4 Market size (Arial 11, Italic)

5.4.1 Population table

5.4.1.1 Georgetown, Penang

Table 5.4.1.1 Georgetown, Penang (example)

Type of outlet No of outlet No of items Price/unit Total

to needed (RM)
(unit)
Retailer
 Shopping 5 18 210.00 18,900.00
Mall
 Mini 30 5 210.00 31,500.00
Market
Wholesaler 20 3 210.00 12,600.00

TOTAL 26 63,000.00

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 5.4.1.2 Population 2

Table 5.4.1.2 Population 2

Type of outlet No of outlet No of items Price/unit Total

to needed (RM)
(unit)

TOTAL

5.4.1.3 Population 3

Table 5.4.1.3 Population 3

Type of outlet No of outlet No of items Price/unit Total

to needed (RM)
(unit)

TOTAL

Note:
1 unit = 1 box
1 box = 6 laundry bags
Price per box = RM210
Price per unit = RM 35

5.4.2 Total market size

Total market size = Georgetown + Population 2 + …… + Population n

= Total Table 6.4.1.1 + Total Table 6.4.1.2 + ……
= RM 803 040 /per month (example)

5.5 Competitors (Arial 11, Italic)

5.5.1 Identifying competitors (3 competitors)

Table 5.5.1 Competitive analysis

Competitors Strengths Weaknesses

Competitor1  3 strengths  3 weaknesses
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 Competitor2
Competitor3
Others

5.6 Market Share (Arial 11, Italic)

5.6.1 Market share before the entry of XXX Enterprise.

Table 5.6.1 Market share before the entry of XXX Enterprise

Competitor Before entrance Amount

(%) (RM)
Competitor1
Competitor2
Competitor3
Others
TOTAL 100 803,040.00

Use pie charts for illustration

5.6.1 Adjusted market share after the entry of XXX Enterprise.

Table 5.6.2 Market share after the entry of XXX Enterprise

Competitor After entrance Amount Percentage of

(%) (RM) loss (%)
Competitor1 Differentiation
before and loss
Competitor2 Differentiation
before and loss
Competitor3 Differentiation
before and loss
Others Differentiation
before and loss
Your business 5 – 10 % 80,304.00 -
TOTAL 100 803,040.00

Use pie charts for illustration

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5.7 Sales forecast (Arial 11, Italic)

Table 5.7 Sales Forecasting

Month Sales Forecast

1 80,304.00
2
3
4
5
6
7
8
9
10
11
12
Year 1 Total Month 1 – Month 12
Year 2 Increment of 10% from Year 1
Year 3 Increment of 15% from Year 2

5.8 Market strategy (marketing mix) (Arial 11, Italic)

5.8.1 Product - detail about the product (choose any point which is related

with your product/relevant)

5.8.1.1 Quality

5.8.1.2 Design

5.8.1.3 Packaging

5.8.1.4 Product Differentiation

5.8.1.5 Labelling

5.8.1.6 Product safety

5.8.2 Price

5.8.2.1 Cost based pricing – explain

Selling price = Total Cost per Unit (FROM 6.9 ) + Mark Up (Range

15 – 20%)

= RM 5.50 + (RM 5.50 x 20%)

= RM 6.60

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 5.8.3 Place

Manufacturer Wholesaler Retailer Consumer

 Manfacturer – explain

 Wholesaler – explain

 Retailer – explain

 Consumer – explain

5.8.4 Promotion (promotion mix) – Choose any relevant point

5.8.4.1 Advertising (select appropriate method)

5.8.4.2 Sales promotion (select appropriate method)

5.8.4.3 Public relation (select appropriate method)

5.8.4.4 Personal selling (select appropriate method)

5.9 Organization Chart for Marketing Department (Arial 11, Italic)

Figure 5.9 Organizational Chart (Head of Marketing Department + workers)

5.10 Man Power Planning and Schedule of Remuneration (Arial 11, Italic)

Table 5.10 List of Marketing Personnel and Schedule of Remuneration: Head of

Marketing Department + workers

Position No of Monthly EPF SOCSO Total

Personnel Salary (13 %)
(RM) (RM) (RM)
(A) (B) (C) (A)+(B)+(C)

TOTAL

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 5.11 Marketing Budget (Arial 11, Italic)

Table 5.11 Marketing Budget

Item Fixed Monthly Other

Assets Expenses Expenses
(RM) (RM) (RM)

Fixed Asset
Signboard 123
Vehicle 456
Working capital
Transportation cost
Salaries
Promotion cost
Petrol
Other Expenses
Insurance and road tax
Banner

TOTAL

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OPERATIONAL PLAN

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6 Operational Plan (Arial 12, BOLD)

6.1 Process Planning for Manufacturing

6.1.1 Process flow chart

6.1.2 Activity chart

1 cycle = --------- unit

1 unit = ------------ minutes

Process Time Machine/ Men

(Minutes) Equipment

6.2 Operations Layout

6.2.1 Layout based on the product

6.3 Production Planning

6.3.1 Sales forecast per month

Output per month

Average sales forecast per month = ? (Refer 5.7)

The sales price = ? (refer 5.4)

Number of output per month = Average sales forecast/Sale price per unit

6.3.2 Number of output per day

If the number of working days per month is 24 days (6 days/week)

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 = No. of output per month / No. working days per month

6.3.3 Number of units per hour

Such as daily working hour = 8 hours

= No. of output per day / daily working hours

6.4 Material Planning

6.4.1 Material Requirement Planning

6.4.1.1 Raw Material Required per Month (Bill of Material)

No Material Quantity Safety Total Price/Unit Total

Stock Material Price
Requiremen
t (RM) (RM)
1 Sugar 500 5% of Quantity + 2.00 2.00 X
quantity Safety Stock total
material
required
2
(example) 500 25 525 2.00 1,050

6.5 Machine and Equipment Planning

6.5.1 Amount of machine & equipment required (Calculate for every machine

usage)

Planned Rate of Production per day X SPT (one process cycle in minute)

Machine productive time per day quantity product per cycle

Example : a) Welding machine

33 X 11.21 min

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 420 min (7 hours x 60 minutes)

= 0.88 @ 1 machine

** Standard production time = one process cycle in minute/ quantity product

per cycle

6.5.2 List of machine & equipment (rental or purchase)

Machine No of machine Price/unit Total Cost

Monthly
(RM) (RM)
Welding machine
Cutter machine
Polish machine
TOTAL

6.6 Manpower Planning

6.6.1 Organization Chart for Operation Department (Arial 11, Italic)

Figure 6.6.1 Organizational Chart (Head of Operation Department + workers)

6.6.2 Amount of direct labour required (Calculate for every man power)

Planned Rate of Production per day X Standard production time

Machine productive time per day

a) Example : Laboratory operator

33 X 0.9 min

420 min (7 hours x 60 minutes)

= 0.07 @ 1 operator

** Standard production time = one process cycle in minute/ quantity

product per cycle

6.6.3 List of Operation Personnel and Schedule of remuneration

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 Table 6.6.3 Table of list of Operation Personnel and Schedule of remuneration

Position No of Monthly EPF SOCSO Amount

personnel Salary Contribution
(13%)
(RM) (RM) (RM) ( RM )
Operation manager 1 4400 572 4972
Labotary 1 2500 325 50 2875
supervisor
Labotary 3 1200 x 3 = 156 24 4140
technologist (suppose (suppose
for 3 for 3
workers) workers)
Operator 3 1200 x 3 = 156 24 4140
(suppose (suppose
for 3 for 3
workers) workers)
TOTAL 16127

6.7 Overhead requirement

6.7.1 Operations Overhead (indirect labour/indirect material/insurance/maintenance and

utilities)

No Types of Overhead Monthly

Cost (RM)
1 Electricity 8,000
2 Water 2,000
3 Rental 17,000
4 Telephone 400
5 Internet 500
6 Box for transportation 300
7 Machine maintenance 750
8 Cleaner 200
TOTAL 29,150

6.8 Total Operations Cost

Total Operation Cost = Direct Material Cost (total raw material) – 6.41 + Direct

Labor Cost (total remuneration) – 6.63 + Overhead Cost (total operations overhead)

– 6.7

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6.9 Cost per unit

Cost per unit = Total Operations Cost (RM)

Total number of Output (Output per month)

6.10 Productivity Index (PI)

Productivity Index = Total value of Output (Sales forecast per month)

Total Value of input (Total Operation Cost)

6.11 Business and operation hours

Business hour = 8 hours per day (8.00 a.m until 6.00 p.m)

Operating hour = 8 hours per day (8.00 a.m until 6.00 p.m)

Working days = 6 days per week ( Monday – Saturday)

6.12 Operations Budget

Item Fixed Assets Monthly Other

Expenses Expenses
(RM) (RM) (RM)

Fixed Asset

Working Capital

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Other Expenses

Pre-Operations

TOTAL

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ADMINISTRATION PLAN

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7. Administration Plan

7.1 Organizational Chart for Administration and Finance Department (Arial 11, BOLD)

Figure 7.1 Organizational Chart (GM + Head and workers of Administration and

Finance Department)

7.2 Manpower Planning

Table 7.2 List of Administration Personnel and Schedule of Remuneration

Position Quantity Monthly EPF SOCSO Total

Salary (13%)
(RM) (RM) (RM)
(A) (B) (C) (A)+(B)+(C)

TOTAL

7.3 Office Furniture, Fitting, Office Equipment and Office Supplies (Arial 11, BOLD)

Table 7.3.1 List of Office Furnitures

Type Quantity Price/Unit Total

(RM) (RM)

TOTAL

Table 7.3.2 List of Office Supplies

Type Quantity Price/Unit Total

(RM) (RM)

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 TOTAL

Table 7.3.3 List of Office Fittings

Type Quantity Price/Unit Total

(RM) (RM)

TOTAL

Table 7.3.4 List of Office Equipments

Type Quantity Price/Unit Total

(RM) (RM)

TOTAL

7.4 Administration Budget (Arial 11, BOLD)

Table 7.4 Administration Budget

Item Fixed Monthly Other

Assets Expenses Expenses
(RM) (RM) (RM)

Fixed Asset
 F
 F
 E
Working capital

Other Expenses

TOTAL

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FINANCIAL PLAN

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8 Financial Plan (Arial 12, BOLD)

8.1 Operating Budget

8.1.1 Administrative Department

8.1.2 Marketing Department

8.1.3 Operations Department

8.2 Project Implementation Cost and Sources of Finance

8.3 Fixed Asset Depreciation Schedule

8.4 Loan and Hire Purchase Depreciation Schedule

8.5 Proforma Cashfow Statement

8.6 Proforma Income Statement

8.7 Proforma Balance Sheet

8.8 Financial Ratio Analysis

8.8.1 Liquidity Ratios

8.8.1.1 Current Ratios

( table and graph)

8.8.1.2 Quick Ratios

(table and graph)

8.8.2 Efficiency Ratios

8.8.2.1 Inventory Turnover Ratios

(table and graph)

8.8.3 Profitability Ratios

8.8.3.1 Gross Profit Margin

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 (table and graph)

8.8.3.2 Net Profit Margin

(table and graph)

8.8.3.3 Return on Assets

(table and graph)

8.8.3.4 Return on Equity

(table and graph)

8.8.4 Solvency Ratios

8.8.4.1 Debt to Equity

(table and graph)

8.8.4.2 Debt to Assets

(table and graph)

8.8.4.3 Time Interest Earned

(table and graph)

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CONCLUSION

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CONCLUSION

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APPENDICES

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PARTNERSHIP AGREEMENT

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a. Name of the business

b. The duration of the partnership (to prevent the dissolution of the business).

The agreement should also state that in the event one partner passes away or

withdraws from the partnership, the business will not be dissolved.

c. Individuals involved in managing the partnership business.

d. The accounts of the business and share capital that show the contribution of

each partner and the right and obligations of each partner towards the capital.

e. The properties are considered as assets of the business.

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