Module 6

CHAPTER
1 6
Technology Venture
Business Plan
Learning Outcomes
At the end of this chapter, you should be able to:
1.Explain the concept of a business plan and

demonstrate its value
2.Discuss the importance of a business plan
3.Define the parties who need a business plan
4.Develop and present a complete outline of an
effective business plan
TECHNOPRENEURSHIP Second Edition All Rights Reserved

© Oxford Fajar Sdn. Bhd. (008974-T), 2016 1– 3
Introduction
What is a Business Plan?
Business Plan is a roadmap, a guide to achieve goals and how to achieve

it.
It is simple and formal document that describes a plan on how you are
going to drive your business and make it successful.
Can be defined as a written document that serves as a blueprint and guide
for a proposed business project that entrepreneur or technopreneur intends
to undertake.
Information gathered regarding the project is used in the business plan to
predict the business’ viability, forecast success and propose strategies for
the project.

The Importance of a
Business Plan

Entrepreneurs use a
business plan to :
 Develop the business mission and vision
 Analyse the performance of their business
 Identify wo are the main competitors, and
analyse their strength and weaknesses
 Increase their opportunity for success
 Identify the right way of managing the
business
 Recognize the barriers of the business and
 Increase their stakeholders’ confidence

Who Needs a Business Plan?

Components of a Business
Plan
Executive Summary
The executive summary is an independent element of the business
plan. It should contain a briefed overview which provide readers or
potential investors a brief but dynamic description of the most
important aspects of the business plan. In particular, it should
highlight the business description, product or service, the value to
the customer, the relevant markets, competition, operations,
risk/opportunities, management expertise, financial and capital
requirements, source of fund, used fund and possible return on
investment.
The reader should be able to read and comprehend the summary in

ten minutes. (The summary, between one or three pages length )

Plan
INTRODUCTION TO THE COMPANY
2.1 Company Background
2.1.1 Company’s Name :
2.1.2 Company’s Vision :
2.1.3 Company’s Mission :
2.1.4 Percentage of Bumiputra’s share : %
2.1.5 Date of Registration :
2.1.6 Date of Operation :
2.1.7 Company’s Registration Number :
2.1.8 Correspondence Address :
2.1.9 Telephone Number :
2.1.10 Type of Industry :
2.1.11 Contribution : RM
(* NB – non Bumiputra, B – Bumiputra)
Figure 1.1 Share holders information
No. Name & IC No. Position Contribution Shareholder
status
RM % NB B

Plan
2.2 Business Project Background
2.2.1 Technical Aspect
2.2.1.1 Product / Service / Technology
(a) Product or services offered
(b) Market needs (demand)
(c) Degree of innovation and
(d) Feasibility and profitability
Essentially, the following are also worth including:
* core technologies
* current development or R & D status
* strategy for current or future products and
* intellectual property
2.2.1.2 Project Location

* Location
* Area and land status.
* Price comparison if your company wanted to
purchase the property. If rental give a copy of
tenancy agreement.(Appendix)

Plan
2.2.1.3 Factory Building
•Type of existing building (Bricks or wood – material used)
•Area and land status
•Development cost and cost comparison
(at least 3 comparison)(Appendix)
•Contractor or developer name and their experience.
•Gantt chart.
•If rental give a copy of tenancy agreement.(Appendix)
2.2.1.4 Proposed Machine/Vehicle/Equipment
Types of Quantity Capacity % of current Purchased Types of
machinery/ usage price (RM) financing
vehicles

Plan
2.2.1.5 Raw Material Requirement/Others Important Input
Type Quantity Price Total Name and

Required per unit (RM) location of
per year (RM) supplier
Total
Figure 2.3: Raw Material Requirement
Give justification cost per unit and resources of raw material

(import/domestic/recycle).
Overall raw material status and suppliers capability, price
fluctuation
and threat)
Plan
2.2.1.6 Production Process
Flow chart of the product and explanation at every process.
2.2.1.7 Quality Control And Pollution

Quality control procedure and environment certification
(if needed) and company suggestion on how to fulfill the
requirement from Ministry of Environment)
2.2.1.8 Technology transfer (if any)

Technology supplier, term and condition

Plan
2.2.1.9 Gantt Chart (Start from the date loan approved)
No Particular Week Week Week Week Week Week

1 2 3 4 5 6
1. Agreement Preparation

Plan
2.2.1.10 Maraketing Programmes (Marketing Aspect)
Type and development of industry, who is the main user, demand size or
market current status, projection for 5 years and the factor influence the
projection. Supply status (import and domestic) for the past 3 years and
current status.
This section should describe how the sales projections you are making in
your financials will be attained in terms of positioning, marketing activities
and promotional campaigns.
It should include:
* Your overall marketing strategies, incl. Events, materials and
primary tactics
* Your pricing strategy (this could also be covered in Revenue
Model segment)
* Your marketing and sales messages
* Your promotional strategy
This section is actually a representation of the overall content of your

more detailed company Marketing plan.
Plan
2.2.1.11 Company’s Target Market
Who is company’s target market and basic requirement of your target, list of current
and future costumer. Customer requirement per annum. Product distribution, prices,
credit terms and season market or all season. If by contract please give the contract
terms and condition. Government regulation if any. Marketing Strategies to increase
market or mind share)
2.2.1.12 Benefits & Customer Value

Your innovative product or services should have its benefits to the end customer.
It is important to indicate how your product differs from others that are now or will
be on the market.
Discuss the function of your product or services and the value in which the
customer will gain from it.
If comparable products, technology or services are already available from your
competitors you must convincingly substantiate the added value your customers
will receive. If you are offering a range of innovative products or services,
categorize them and describe how the integrated products will benefit consumers .

Plan
2.2.1.13 Market & Competitors Information Main Competitor
Name, Location, Brand, projection output per annum, market share (%).
Competitor background, operation date, capacity, pricing, performance and
their expansion planning.
Competitor’s Brand Output Market share Market Value

Name & Projection per (RM)
Address year
Total
Describe the market segment or target market you are in. Also, indicate
which main factors are now influencing or may influence the given industry
segment. Show what factors will affect developments (technology, legislative
initiatives, etc.) and what relevance these factors have for your business.

Plan
2.2.1.14 SWOT Analysis
Define the strengths and weaknesses of your competitors.
Evaluate your major potential competitors using the same criteria,
e.g. sales volume and revenues (pricing), growth, market share,
cost positioning, product lines, customer support, target groups,
and distribution channels.
Evaluate your own company according to these same criteria, and

make a comparison as to how sustainable your competitive
advantage will be.
Strength & Weaknesses or SWOT (if possible)

Broadly, list the competitors in your market segment, and briefly
describe the strength and weaknesses against your product or
services
Plan
Strength Weakness
Internal
Opportunities Threats
External

Plan
2.2.1.15 Seven Ps’ of Marketing Mix
(a) Product – your current product or service appropriate or suitable for today’s
Market and customers? You product superior in any way to those or your
competitors?
(b) Price – Your prices ideal for your current market? Why?
(c ) Place – Where will your product or service be sold, displayed or stored?
(d) Promotion – How will your products be promoted? (advertisements,
Websites, new channels, etc.
(e) People – Who will offer your product or services to customer? Who will
carry out specific tasks or responsibilities?
(f) Process – How will your products or service reach customers? Do you have
An effective process to minimize costs?
(g) Physical evidence – How will customers know that your product or service
is in the marketplace? How will they recognize your presence and
establishment?
Plan
2.2.1.16 Growth Strategies to Compete The Competitor
Growth strategies. State what are the strategies that your

company plans to achieve in growing the company. (Quality,
packaging, pricing, distribution, promotion, credit terms,
services, design or branding)
Technology and Product Development Strategies

* To have flawless mobilization
* To rapidly deploy the system integration by
initially
* To understudy closely with the
* To invest consistently in potential experts.
* To develop smart partnership with
* To exploit the ready infrastructure
* To extend into developing
* To exploit the database for
Plan
2.3 Employment of Knowledge Workers
2.3.1 Company’s organization

Plan
2.3.2 Director’s name and background (Appendix 1)
Name
Age
Qualification,
Experience,
Share hold from other company, value and percentage of ownership.
Net asset value,
Specialization.
2.3.3 Main staff name and background if different than above. (Appendix 2)
Name
Age
Qualification
Experience
Share hold from other company, value and percentage of ownership.
Net asset value,
Specialization.
Number of permanent workers and contract workers.
2.3.4 Justification
Explain the credibility of the management team to run the business.
Plan
2.4 FINANCIAL PROJECTIONS
2.4.1 Financial Overview
This section represents the conservative, achievable and
management projections of revenue, cost, expenses and cash
flow.
These includes:
* P&L projections for 3 years (in RM)
* Cash flow projections for 3 years (in RM)
* Performa Balance Sheet for 3 years (in RM)
* Major capital requirements or expenditure
* Breakdown of sales (in detail)
* Breakdown of R&D expenditure in detail
* Last 3 Years Revenue and Profit after tax (should your
company already been in operation the last 3 years)

Plan
2.4.2 Financial Qs to consider
Key questions that can be observed:
* How will your revenues and expenses develop?
* What assumptions underlie your financial planning?
* What sources of capital are available to you to sustain
operations?
* How will you realize profits?
* What can an investor expect should they invest in your
company?
3.0 Conclusion or Appendices

State the strength and potential of the project.
* Project risk and solution to overcome the risk and
* Anything else that you wish to include

CHAPTER 6
THANK YOU


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CHAPTER

At the end of this chapter, you should be able to:

1.Explain the concept of a business plan and

TECHNOPRENEURSHIP Second Edition All Rights Reserved

What is a Business Plan?

Business Plan is a roadmap, a guide to achieve goals and how to achieve

TECHNOPRENEURSHIP Second Edition All Rights Reserved

TECHNOPRENEURSHIP Second Edition All Rights Reserved

TECHNOPRENEURSHIP Second Edition All Rights Reserved

TECHNOPRENEURSHIP Second Edition All Rights Reserved

The reader should be able to read and comprehend the summary in

TECHNOPRENEURSHIP Second Edition All Rights Reserved

TECHNOPRENEURSHIP Second Edition All Rights Reserved

2.2.1.2 Project Location

TECHNOPRENEURSHIP Second Edition All Rights Reserved

TECHNOPRENEURSHIP Second Edition All Rights Reserved

Type Quantity Price Total Name and

Give justification cost per unit and resources of raw material

2.2.1.7 Quality Control And Pollution

2.2.1.8 Technology transfer (if any)

TECHNOPRENEURSHIP Second Edition All Rights Reserved

No Particular Week Week Week Week Week Week

TECHNOPRENEURSHIP Second Edition All Rights Reserved

This section is actually a representation of the overall content of your

2.2.1.12 Benefits & Customer Value

TECHNOPRENEURSHIP Second Edition All Rights Reserved

Competitor’s Brand Output Market share Market Value

TECHNOPRENEURSHIP Second Edition All Rights Reserved

Evaluate your own company according to these same criteria, and

Strength & Weaknesses or SWOT (if possible)

TECHNOPRENEURSHIP Second Edition All Rights Reserved

Growth strategies. State what are the strategies that your

Technology and Product Development Strategies

2.3.1 Company’s organization

TECHNOPRENEURSHIP Second Edition All Rights Reserved

Number of permanent workers and contract workers.

TECHNOPRENEURSHIP Second Edition All Rights Reserved

3.0 Conclusion or Appendices

TECHNOPRENEURSHIP Second Edition All Rights Reserved

TECHNOPRENEURSHIP Second Edition All Rights Reserved

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