BUSINESS PLAN

Dr. Azlin Shafinaz Mohamad Arshad

Malaysian Academy of SME & Entrepreneurship
Development
(MASMED)
 Learning Outcomes:

▪ To understand what is a business plan

▪ To determine why business plan is
prepared
▪ To know who needs business plan
▪ To identify how business plan is
prepared
 WHAT??

BUSINESS
HOW?? WHY??
PLAN

WHO??
 What is a Business Plan??

▪ A business plan is a written document

which described the proposed business or
project to be undertaken in a
comprehensive manner.
▪ It is also known as a working paper,
business proposal, project paper or
prospectus.
 Why Prepare a Business Plan??
❑ To assess the business venture objectively,
critically and practically.
❑ To study and evaluate the feasibility of the
business.
❑ To convince venture capitalists, investors and
bankers in order to raise capital and obtain
support for the venture.
❑ To guideline for day-to-day management.
❑ To distribute business resources more effectively
 Who Reads Business Plan??

Entrepreneurs
Investors
Bankers & Financial Institution
Suppliers
Customers
Employees
 HOW PREPARE BUSINESS PLAN??
Cover Page
Table of
Contents
Executive  Introduction
Summary  Company background
Main Body  Owner(s) background
 Administration plan
Appendices  Marketing plan
 Operations plan
 Financial plan
 Conclusion
 HOW??
Cover Page

Table of Contents

Executive Summary

Main Body

Appendices
COVER PAGE
The cover page should include the
details of the project (name, contact
no, address, etc).

TABLE OF CONTENTS
▪ Included in the table of contents is a
list of the sections, sub- sections, and
any appendices.
▪ The page numbers must be included
for easy reference.
 EXECUTIVE SUMMARY
❑Gives a brief overview that helps put all the
information into perspective which includes:
❑ Brief description of the business and
product concepts
❑ The target market and projections
❑ The competitive advantages
❑ The profitability
❑ The management team
❑It is generally written at the very last when all
the details of the blueprint are available.
 MAIN BODY
▪ Introduction
▪ Business Description
▪ Administration Plan
▪ Marketing plan
▪ Operation plan
▪ Financial plan
 INTRODUCTION

❑Should clearly state name of company, nature of

business, location, operational date and prospects of
business.
❑Specify physical location of business premise,
operations premise (if different), advantage of location
in helping business achieve objectives (e.g. proximity
to suppliers, target market or usability of space).
❑State the key purpose of preparing plan (e.g. for
financing, business viability assessment, operational
blueprint etc.)
State the vision, mission and objectives of the
business organization.
 Business vision helps to prepare a small
business to plan for the future and to
achieve what it aspires to be.
 Business mission is a statement that shows the
purpose or reasons for its existence.
 Business objectives are short term planning
characterized by a more specific statements
and with definite time frame. Use SMART
concept.
 Also include the following: business address,
location plan, type of building and
infrastructure.
 BUSINESS DESCRIPTION
Business Background
❑ Details regarding the company legal structure
(registered name, form address and when
registered), main activity & date operations start.
❑Vision statement, Mission statemen & Objectives.
❑Company logo & descriptions
Owner Background
❑Details of each individual that is a registered
owner of the business
❑State relevant qualifications, skills, experience, role
in business and stake or share in business
BUSINESS BACKGROUND
OWNER’S BACKGROUND
 ADMINSTRATION PLAN

1. ORGANIZATION CHART

2. SCHEDULE OF TASKS & RESPONSIBILITIES

3. SCHEDULE OF REMUNERATION

4. OFFICE EQUIPMENT & SUPPLIES SCHEDULE

5. ADMINISTRATION BUDGET
 MARKETING PLAN

1. DETERMINING PRODUCT OR SERVICE

2. IDENTIFYING TARGET MARKET

3. MARKET SIZE AND MARKET SHARE

4. ASSESSING COMPETITION

5. MARKETING STRATEGY

6. MARKETING BUDGET
 OPERATIONAL PLAN
1. PROCESS PLANNING

2. OPERATION LAYOUT

3. PRODUCTION PLANNING

4. MATERIAL PLANNING

5. MACHINE AND EQUIPMENT PLANNING

6. OPERATION BUDGET
 FINANCIAL PLAN
1. PROJECT IMPLEMENTATION COST

2. SOURCE OF FINANCE

3. LOAN AMORTIZATION & DEPRECIATION TABLE

4. CASH FLOW STATEMENT

5. INCOME STATEMENT

6. BALANCE SHEET
 CONCLUSION
❑ Is the proposed project is viable to proceed?
❑ Have you justified the claims?
 APPENDICES
❑Attached every supporting facts or
documents.
❑Includes pictures, certificates, etc.