THE BUSINESS PLAN

MEDEC UiTM

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 THE BUSINESS PLAN

SESSION OBJECTIVES

At the end of the session, students should be able to:

 understand the importance of a business plan,

and
 prepare 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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 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 be able to distribute business resources more
effectively.
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 Audiences of the Business
Plan:
1. Entrepreneurs
2. Investors
3. Bankers
4. Financial Assistance Providers
5. Suppliers
6. Customers
7. Employees
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 Business Plan Format
1. Cover Letter
2. Title Page
* Title of the business plan
* Name and address of the business
* Name of writers
* Date
3. Table of Contents
4. Executive Summary
5. Main Body of the Business Plan
6. Appendices
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 Main Body of the Business Plan
1. Introduction
2. Purpose
3. Background of the Business
4. Background of Partners/Shareholders
5. Location of Project
6. The Organization Plan
7. The Marketing Plan
8. The Production/Operation Plan
9. The Financial Plan
10. Justification
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 Body of the Business Plan

1. Introduction

a. Name of the business

b. Type of business
c. Industry overview
d. Location of the business
e. Date of commencement
f. Factors influencing choice of business
g. Business potential
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 Body of the Business Plan
2. Purpose
Each business plan is prepared for a specific purpose. The
entrepreneur should clearly and specifically state the
purpose for preparing the particular business plan .

Examples:
a. This business plan is prepared by Syarikat Fair One
Sdn. Bhd. to obtain a term loan for the amount of
RM50,000 from Bank Pembangunan dan Infrastruktur.

b. This business plan is prepared by Syarikat Fair One

Sdn. Bhd. as a guideline in managing the business.
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 Body Of The Business Plan
3. Background of the Business
a. Name of the business
b. Business address
c. Correspondence address
d. Telephone number
e. Form of business
f. Main activity
g. Date of commencement of business
h. Date of business registration
i. Business registration number
j. Name of bank
k. Bank account number
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 Body Of The Business Plan
4. Background of Partners/Shareholders

a. Name in full h. Marital status

b. Identity card number i. Academic qualification
c. Permanent address j. Courses attended
d. Correspondence address k. Skills
e. Telephone number l. Experiences
f. Date of birth m. Current job/position
g. Age n. Other/Previous
business experiences

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 Body Of The Business Plan
5. Location of project

a. 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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 Body Of The Business Plan
6. The Organization Plan

a. General business description

b. Organizational chart
c. Table of job designation and number of workers
d. Job Description
e. Remuneration table
f. List of office furniture, fixtures and fittings
g. The administrative budget

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 Body Of The Business Plan
7. The Marketing Plan

a. Introduction to the product/services

b. Target market
c. Market size
d. Competition
e. Market share
f. Sales forecast
g. Marketing strategies
h. The marketing budget
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 Body Of The Business Plan
8. The Production/Operation Plan
a. Process Flow Chart
b. Unit output/Hours of operation
c. Material requirement
d. List of direct workers
* designation
* remuneration
e. List of machines and equipment
f. Plant/office layout
g. Location
h. Operation overhead
h.
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The production budget
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 Body Of The Business Plan
9. The Financial Plan

a. Project Implementation Cost

b. Sources of Financing
c. Table of Depreciation
d. Loan Amortization Schedule
e. Hire Purchase Repayment Scheme
f. Cash Flow Proforma
g. Profit and Loss Proforma
h. Balance Sheet Proforma

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 Body Of The Business Plan

10. Justification

Justify why the project is worthy of

finance.

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