Business Plan

.  The administration section has to manage the overall business objective and goals. The administration of business forms an important base from the business routines are maintained and control.  General Manager also manages the overall business routines and strategies from administrative point.  This may be the reason of the business General Manager is often housed in administrative section.

mission and objectives. One of the best ways to introduce a business organization is to state its vision.  It establishes the identity of the business and what it does.  Vision is the long term goal of the business.  Vision is often stated in terms of a value statement announcing where the business wants to go or what it aspires to be. .  A mission is a statement of purpose or the reason for existence.  Mission defines long-term goals of the company but in a specified time frame.

 Objective is more specific.  A good business objective should be specific. realistic and have a time frame. . stated in shorted term and have a define time frame. achievable. measurable. Objective support the achievement of a business mission and vision.

. An organization chart will show a business structured according to the departments / or position in the company.  Organization Chart will allow one to see how the lines of authority and responsibility flow through the organization.

 This schedule will describe in detail the tasks and responsibilities of the person holding the particular position. A schedule off tasks and responsibilities has to constructed for every position that is available in the organization. .

. The Administrative Plan has to include the remuneration schedule that lists the salary and wage structure for each position.  It should include the contribution that a company has to allocate to different provident funds like the Employees Provident Funds (EPF) and the Social Security Organization (SOCSO).

 In order to facilitate the overall financial planning of the business.  The costs structure of a business can be divided into three main categories: 1) Fixed Assets 2) Monthly Expenses 3) Other Expenses . all costs under every section of the business plan need to be summarized under relevant section.

Monthly Expenses  Refer to the payments that have to be made every month as part of maintaining the business existence. electivity. monthly payment for utilities (i. business rental. and office supplies. purchase of business premises or any renovation of premises.  The key items included under Fixed Costs include the purchase of furniture and fittings. Other Expenses  Refer to the expenses that do not fall into the Fixed Assets and Monthly Expenses. water).Fixed Assets  Refer to the investment made in the purchase of assets that will be used in the organization of r a period of more than one year.  The main expenses include remuneration and contributions for business personnel.  These item are often expenses incurred once a year or on a .e.

 Marketing plan is one of the main aspects that are very important in order to expand market.  Marketing is and exchange activity that takes place between a business entity and customers. .  Marketing plan also introduce product and make sure there is improvement in the business.  It is a part of the business which can help us to promote the business to the customer. through the marketing plan there are giving more choice to customer besides introducing a new concept in attracting the customers and promote company product to market.  Beside that.

 Marketing is defined as the activities that are carried out systematically and increase sales products or services as long as the activities are in line with religious and ethical practice.  The success of a business venture depends very much on the ability of that business to offer the products or services that is demanded by the target customer group.  A market is a physical place where buyers and sellers exchange goods and services. .

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It is impractical and almost impossible for a business to offer a product that can satisfy the needs and wants of the entire population.Definition of Target Market  To ensure that marketing efforts fulfill customers’ needs and wants as well as bring profits. Importance of Identifying the target market i. Most businesses have limited resources in terms of time. . money and manpower.  The target market is therefore defined as the group of customers with needs and wants.  The business should identify and focus its efforts on a selected group of customers. ii.

Steps in Identifying the Target Market Step 1 Identify the product or service to be offered Step 2 Focus the marketing effort a)Identify the market area and business location b)Collect information and data of customers c)Segmenting the market Step 3 Determine target market from the market segments identified .

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 Operation plan can be defined as the process of marshalling resources to produce output through the transformation process. Operation management need to planned very properly as it is the main component in any business proposal. it is:a)Business Input b)Transformation System c)Output .  The operation process comprises three main components.

Among others. technology. Output can be categorized into either products or services. information and capital. Output Refer to the product created as the result of the transformation process. planning of floor layout and distributing of manpower in organization. Transformation System Refer to the activities involved in transforming input into output.Business Input Refer to all resources required to produce a particular output. designing of operation process. . the processing system involves planning of raw materials. machines and equipment. Examples of input are manpower. raw materials.

External Environment Forces INPUT • • • Labor Raw Materials Machines & Equipment Technology & Methods Capital OUTPUT Services TRANSFORMATION PROCESS Or • • Products Feedback Feedback .

he/she will have to undertake process planning.Process Planning i. . iii. Several alternative processes available and the entrepreneur will have to choose one that is most suitable and cost effective to his/her operation. Process planning will involved identifying the step-by-step process from beginning to end make the product or provide the services. Before the entrepreneur can produce an output either in the form of products and services. ii.

. Transportation Transport activity occurs when materials and transported from one point to another. Activities that measures standard of the in-process material.Symbol Type of Activities Operation Description Activities that modify. finished products or services. transform or give value to the input. Inspection Storage The symbol is used when the inprocess materials or finished products are stored in the storage area.

ii. iii. and machine. . Process flow chart will be uniform and there will be less variation on production input such as material. manpower. The entrepreneur will have to decide which of the strategies is more advantageous. Process flow chart is to ensure that quantity of production is enough to fulfill expected market demand.Process Flow Chart i.

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Financial Plan .

2. . Office equipment Payroll Other administration costs 1. 4. 3. 4. machinery and equipment cost 2. Direct labor 3. Direct materials 4. 5. Product / Operation Budget 1. Operation overheads Administrative Budget Furniture. 3. Plant. 2. 4. 3.Operating Budget Marketing Budget Sales forecast Cost of distribution Promotional costs Entertainment allowances Sales commission 1. Financial Budget Project implementation costs Sources of financing Cash flow statement Income statement Balance sheet 1. 2. fixtures and fittings. 5.

e.a) To determine the size of investment i. the project implementation cost To identify and propose the relevant sources of finance b) c) d) To ensure that the initial capital is sufficient To appraise the viability of the project before actual investment is committed To be sued as a guideline for implementation e) .

Step 1: Gather all financial input Step 2: Prepare the project implementation cost schedule Step 3: Prepare the sources of finance schedule Step 4: Prepare the pro forma cash flow statement Step 5: Prepare the pro forma income statement Process of Developing a Financial Plan Step 6: Prepare the pro forma balance sheet Step 7: Perform financial analysis based on the above pro forma statement .

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