CHAPTER 2

THE BUSINESS
PROFILE
 Business profile guidelines
A1. The business activity
A2. Ownership structure
A3. Business name
A4. Business location
A5. Business history / Entry strategy
A6. Legal requirements
A7. Business objectives
 Business profile example
A1. THE BUSINESS ACTIVITY

A business activity can be described in terms of

generic products or services sold and the nature of
the selling activity
A1. THE BUSINESS ACTIVITY

Examples of description of business activities are

A2. OWNERSHIP STRUCTURE

There are 4 main ownership structures to choose

from for your small business
Sole Trader
Partnership
Joint Venture
Small Company
A2. OWNERSHIP STRUCTURE

Some of the factors to consider when making your

choice of ownership structure include:
A2. OWNERSHIP STRUCTURE

Advantages and disadvantages of ownership

structure
A2. OWNERSHIP STRUCTURE

Advantages and disadvantages of ownership

structure
A2. OWNERSHIP STRUCTURE

Advantages and disadvantages of ownership

structure
A2. OWNERSHIP STRUCTURE

Advantages and disadvantages of ownership

structure
A3. BUSINESS NAME

 Whichever ownership structure you choose, the

business need a name to trade under
 A proposed business name will only be registered
if it is original and not misleading, deceptive or
offensive
 A businessname should be brief, descriptive of
the business activity, catchy, easy to remember
and should project the desired image
A3. BUSINESS NAME
A4. BUSINESS LOCATION
The choice of business location is a marketing
decision which is considered in the Marketing
Plan
Any location features such as exposure or
accessibility should be emphasized in the
description
 A description of the business location chosen should
be part of the business profile and should include:
A4. BUSINESS LOCATION
A4. BUSINESS LOCATION

Ifapplicable, also describe key lease terms

negotiated for the premises.
Key lease
terms include:
A5. BUSINESS HISTORY/ENTRY
STRATEGY
BUSINESS HISTORY
For an existing operation, provide a brief
history of the development of the business
from its starting date to present time
You could include a summary of key
measures of business performance to
highlight growth (see table 2.5)
A5. BUSINESS HISTORY/ENTRY
STRATEGY
BUSINESS HISTORY
A5. BUSINESS HISTORY/ENTRY
STRATEGY
BUSINESS HISTORY
A demonstrated history of business growth
provides a lender with evidence of
management ability
A5. BUSINESS HISTORY/ENTRY
STRATEGY
BUSINESS ENTRY STRATEGY
 You must select an entry strategy and start date for a
proposed business
 There are 3 main ways for you to enter small
business
1. Starting up
2. Buying an existing business
3. Obtaining a franchise outlet
STARTING UP
STARTING UP
BUYING AN EXISTING BUSINESS
BUYING AN EXISTING BUSINESS
OBTAINING A FRANCHISE OUTLET
OBTAINING A FRANCHISE OUTLET
A6. LEGAL REQUIREMENTS

 There may be specific legal requirements to be met

when carrying out your business
 Legal requirements may be in the form of
1. Business licenses
2. Approval and permits
3. Compulsory registrations
http://www.dbkk.sabah.gov.my/index.php/perkhidmat
an/2015-07-22-09-01-05
A6. LEGAL REQUIREMENTS
A7. BUSINESS OBJECTIVES

 Should be designed to achieve business goals

 Are targets for the operation to work towards
 They set a direction for your business to follow
 Once defined, you will be able to plan strategies to achieve them
 Need to be set for each function of the operation
 There should be annual objectives for each year of the plan
period
 Need to be coordinated and consistent with each other
A7. BUSINESS OBJECTIVES

 Tobe an acceptable target, any business objective

must satisfy the following criterias
Be measurable
Be clear and concise
Be in writing
Be attainable
Be challenging
Be improving over time
A7. BUSINESS OBJECTIVES