topic 5 bp guidelines

8/3/2019 Topic 5 BP Guidelines

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ENTREPRENEURSHIP

TOPIC 4 :

GENERAL GUIDELINES FOR

BUSINESS PLAN


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WHAT IS BUSINESS PLAN ?

Business Plan is a comprehensive documentthat helps an entrepreneur analyze the marketand plan the strategy

A business plan is often prepared by existing

company to ensure the future of growth isproperly managed

For a start-up company, it helps theentrepreneurs avoid costly mistake.

It is often necessary for obtaining financing.

A well-written business plan provides evidenceof the entrepreneurs ability to pelan andmanage a company.


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ORTHEROBJECTIVES OF

BUSINESS PLAN

To view, evaluate the proposed businessventure in an objective, critical and practicalmanner.

Analyze the viability of the business venture

As guideline to manage the proposed ventureor project.

To allocate business resource effectively

To convince relevant parties of investmentpotential in the venture.


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Who Need the BP ?

The Entrepreneur

Detail out the proposed venture

Guide to manage business

Funding and capital raising. Financial Institutions & Investors

Investigate and evaluate the viability of the

business proposal as to assess the risks and

return of the venture


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Who Need BP ? Supplier

To support supplier credit facility to be given to thenew venture.

Employee.

To get employee commitment towards the success of

the company / ventures. Customer

To influence customer on the company product orservices.

To convince the customer about company

capabilities


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Feasibility Study

Before committing time and energy to preparing a

business plan, the entrepreneur should do a quick

feasibility study of the business concept.

Are there any barriers to success?

Can the product be marketed, financed,

produced?

Use the Internet as a source of information.

Are goals and objectives of the venture clearly

defined?


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Sources of Information for

Planning: Market Information:

The first step is to define the market.

Operations Information Needs

Considers manufacturing operations,

materials, labor, overhead. Financial Information:

Pro forma income statements, balance sheetsand cash flow statements for the next 3 years.

2 Types :

Primary Secondary.


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Main body of BP

1. Introduction2. Objective

3. Business Background

4. Shareholders / Directors background

5. Organizational Plan6. Market Plan

7. Operational Plan

8. Financial Plan9. Summary

10.Attachments


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Organizational Plan

Introduction to Organization Mission Statement , Objectives, Strengths

Administrative Plan Organizational Chart, List of Staff, Offices, Branches

Administrative Budget ( RM ) Salary, perks, office supply, office furniture , equipments,rental, utilities etcs.


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Market Plan

Product / services description.Market Size

Target Market

Competition Level

Market Share

Marketing Strategies & Action Plan

Sales Target ( both quantity and value RM)

Marketing operation budget

Fixed assets for marketing activities


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Operational Plan ( production )

Production Processes flow chart

Production Schedule

Capacity Plan

Manpower for production

Raw material supplyLocation & layout

Production Budget (quantity & cost)

Operating budgetFixed assets for plant & equipments


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Financial Plan

Project Implementation Costs

Capital Expenditure (one off)

Working Capital (recurring)

Initial expenditure (one off)

Sources of Financing

Overall financing requirements

Cash Flow Forecast - monthly & yearly

Profit & Loss Forecast monthly & yearlyBalance Sheet


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Financial Plan

Project Implementation Costs

Capital Expenditure (one off)

Working Capital (recurring)

Other expenditure (one off)

Sources of Financing

Overall financing requirements

Cash Flow Forecast - monthly & yearly

Profit & Loss Forecast monthly & yearlyBalance Sheet


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FINANCIAL PLANNING IN THE BUSINESS

PLAN

MARKETING

PLAN

PRODUCT PLAN

FINANCIAL

PLAN

OPERATIONAL

PLAN

ORGNIZATIONAL

PLAN


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FINANCIAL PLAN

Contents

Introduction

Project Implementation

Capital Expenditure

Working Capital

Other Expenditures

Contingency allocation

Source of Financing

Short Term Financing

Intermediate Financing

Long Term Financing

Schedule Loan Payment

Hire Purchase Installment

Depreciation asset

Proforma Cash flow Statement

Profit Loss Statement

Balance Sheet

Assumption and Basis Sales

Cost

Economics

Environment


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Summary

Summarize important points in Business

Plan. It must be precise and concise.

Attachments any relevant attachments

topic 5 bp guidelines

Documents