ACKNOWLEDGEMENT

First and foremost, we convey our sincere gratitude to our respected course lecturer,
Madam Khairunnisa binti Bujang for teaching us Small Business and Entrepreneurship. We
highly appreciate her for giving us sufficient time to complete this business plan and her
constant guidance throughout the whole assignment. Her understanding and patience in
answering every question helps us feel less pressured in completing this task.

We cannot express enough thanks to each one of our group members for making this
happen. Without each other’s cooperation and support, we are surely not able to complete
this group assignment. At the beginning, we had faced some struggles since we do not really
understand on how to do it but with the help of other classmates and the effort of our own
groupmates, we could finish it successfully.

We would also like to thank our parents for taking the time to help us by putting aside
their important works. Some of our parents has contributed in this assignment by explaining
to us on how to do the business plan little by little. Not to forget, we would like to thank all
journalists who wrote articles and posted useful information on their website or blog
regarding this subject. Due to that, our job became easier as some of them can be attained
from the Internet. We gained a lot of ideas and by that, we improvised the ideas into our own
words.
Purpose of Preparing the Business Plan

A business plan is a formal written document outlining the detailed execution plan and
company’s strategies on how to achieve it in an efficient way. It is the starting point for every
start-up business because operating without a business plan will result in failure.

There are several purposes of preparing the business plan and the main one is to use it
as a roadmap. According to Lindzon (2019), it is possible to travel without a roadmap but it
will only increase the possibility of getting lost along the way. Thus, business plan acts as a
roadmap to look for the right direction when in doubt because it includes an overall path like
competitive analysis, market segmentation and cash flow projection. It also guides
employees and executives to be realistic in planning, to turn vision into reality. For instance,
business plan describes customer’s needs so the company can create a product to fulfil it.
Business may have some artistry to it, but real success comes from having a vision and
being organized in striving that vision. Therefore, a well-written business plan is an important
tool for business owners to see a bigger picture, plan ahead, manage crisis and making the
best decisions.

Secondly is to attract investors. One of the first things that investors look for before
investing in a particular company is an excellent and solid business plan. For example, they
want to know about expenses, revenue estimation and if the company shares the same
business philosophy and professional approach as them. Most importantly, they want to see
a realistic forecast of how much they will be earning returns on their capital investment. All of
these aspects help investors to decide whether the business is on the right path and worth
putting money into. Establishing a company often requires time and capital so a start-up
company should reveal its business plan to potential investors since their decisions will be
solely on the strength of business plan itself. After all, anyone that is interested to invest in a
company will want to know if their money is in good hands and viable in the long run.

The last purpose is to secure external financing. Here, business plan serves as a
business card for introducing the company to banks or any other agents involved in seeking
financial support. Before any financial institution approves a loan, they will want to read a
well-crafted business plan to assess if company’s financial situation is sound and stable.
They will not provide monetary support unless the company can demonstrate a clear income
statement in the business plan as it quickly shows whether the company will be making profit
or suffering from a loss and how much the losses may be every month. This is because
banks want to mitigate their risk if any companies fail to repay the loan and thus, banks has
made business plan a precondition before providing capital to start-up businesses (Hayes,
2021).