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THE BUSINESS PLANMEDEC UiTM
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THE BUSINESS PLANSESSION OBJECTIVES
At the end of the session, students should be able to:
understand the importance of a business plan, andprepare a
business plan
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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.
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Audiences of the Business Plan:
1.Entrepreneurs2.Investors3.Bankers4.Financial Assistance
Providers5.Suppliers6.Customers 7.Employees
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Reasons For Preparing a Business Plan:1.Opportunity for
entrepreneur to assess the business venture objectively, critically
and practically.2.To study and evaluate the feasibility of the
business.3.To convince venture capitalists, investors and bankers
in order to raise capital and obtain support for the venture.4.As a
guideline for day-to-day management of the business.5.To plan for
effective and efficient distribution of business resources
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Business Plan Format1.Cover Letter2.Title Page* Title of the
business plan* Name and address of the business* Name of writers*
Date 3.Table of Contents4.Executive Summary5.Main Body of the
Business Plan6.Appendices
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Main Body of the Business
Plan1.Introduction2.Purpose3.Background of the Business4.Background
of Partners/Shareholders5.Location of Project6.The Organization
Plan7.The Marketing Plan8.The Production/Operation Plan9.The
Financial Plan10.Justification 11. Appendices
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Body of the Business Plan1.Introductiona.Name of the
businessb.Type of businessc.Industry overviewd.Location of the
businesse.Date of commencement f.Factors influencing choice of
businessg.Business potential
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2.PurposeEach business plan is prepared for a specific purpose.
The entrepreneur should clearly and specifically state the purpose
for preparing the particular business plan .
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a.This business plan is prepared by Fair One Sdn. Bhd. to obtain
a term loan for the amount of RM50,000 from the SME Bank. b.This
business plan is prepared by Syarikat Fair One Sdn. Bhd. as a
guideline in managing the business.2.Purpose: Examples
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3.Background of the Businessa.Name of the businessb.Business
addressc.Correspondence addressd.Telephone numbere.Form of business
f.Main activityg.Date of commencement of businessh.Date of business
registrationi.Business registration numberj.Name of bankk.Bank
account numberl.Equity contribution
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4.Background of Partners/Shareholdera.Name in fullb.Identity
card numberc.Permanent addressd.Correspondence addresse.Telephone
number f.Date of birthg.Age
h.Marital statusi.Academic qualificationj.Courses
attendedk.Skillsl.Experiencesm.Current job/positionn.Other/Previous
business experiences
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5.Location of projecta.Physical location of project and
proximity to roads, highways etc.(Provide road map for exact
location)b.Building (type, structure, size and
value)c.Infrastructure (water, electricity, telephone)
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Main Content the Business Plan6.The Organization Plana.General
business descriptionb.Organizational chartc.Table of job
designation and number of workersd.Job descriptione.Remuneration
tablef.List of office furniture, fixtures and fittingsg.The
administrative budget
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7.The Marketing Plana.Introduction to the
product/serviceb.Target marketc.Market sized.Competitione.Market
sharef.Sales forecastg.Marketing strategiesh.The marketing
budget
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8.The Production/Operation Plan a.Process Flow Chartb.Unit
Output/Hours of Operation c.Material Requirementd.List of Direct
Workers* designation* remuneratione.List of Machines and
Equipmentf.Plant/Office Layoutg.Locationh.Operation Overheadh.The
Production Budget
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9.The Financial Plan a.Project Implementation Costb.Sources of
Financing c.Table of Depreciationd.Loan Amortization Schedulee.Hire
Purchase Repayment Schemef.Cash Flow Proformag.Profit and Loss
Proformah.Balance Sheet Proforma
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PROJECT IMPLEMENTATION COSTS:
Capital ExpenditureWorking CapitalOther ExpenditureContingency
Allowance
SOURCES OF FINANCING:
Equity FinancingDebt Financing=ADMINISTRATION
BUDGETMARKETINGBUDGETOPERATION BUDGETOTHER COSTS
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PROJECT IMPLEMENTATION COSTS:
Capital ExpenditureWorking CapitalOther ExpenditureContingency
Allowance
SOURCES OF FINANCING:
Equity FinancingDebt Financing=DEPRECIATION TABLEPROFORMACASH
FLOWLOAN AMORTIZATIONHIRE PURCHASE REPAYMENT SCHEDULE
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PROFORMA INCOME STATEMENTPROFORMA BALANCE SHEETMANUFACTURING
ACCOUNT:
To Calculate Cost of Goods manufacturedTRADING ACCOUNT:
To Calculate Cost of Goods SoldFINANCIAL ANALYSIS :
Breakeven AnalysisProfitability Analysis
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10.JustificationJustify why the project should be undertaken or
is worthy of finance
Focus on: profit potential, sustainability, growth potential,
credential/strength of management team, market assurance &
other factors that add credit to the proposed business
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11.AppendicesAttach documents or data to support your claim in
the proposal.
Example:
Letter of undertakingPrevious successful projectsExperience of
management teamLicences & Agreements
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