BUSINESS PLAN OUTLINECOVER PAGE (EDIT)

LETTER OF SUBMISSION (EDIT)

ACKNOWLEDGEMENT

INTRODUCTION

1. Introduction (Arial 12, BOLD)

1.1. Name of the company

1.2. Nature of Business

1.3. Industry Profile

1.4. Location of the business

1.5. Date of business commencement

1.6. Factor in selecting the proposed business

1.7. Future prospects of the business

PURPOSE2. Purpose of preparing the business plan (Arial 12, BOLD)

2.1. To evaluate the project viability and growth potential

2.2. To apply for loans or financing facilities from the relevant financial institutions2.3. To act as a guideline for the management of the proposed business

2.4. To allocate business resources effectively

COMPANY BACKGROUND3. Company Background (Arial 12, BOLD)Table 3.1 Company Background

Name of the Company

Business Address

Correspondence Address

Website

E- mail

Telephone Number

Fax Number

Form of Business

Main Activity

Date of Commencement

Date of Registration

Registration Number

Name of Bank

Bank Account Number

3.1

Vision and Mission

3.1.1Vision

3.1.2Mission3.2

Organizational Chart

(GM + Head of Department)3.3

Logo and Motto

3.3.1Logo

3.3.2Motto

SHAREHOLDERS BACKGROUND4. Background of Shareholders (Arial 12, BOLD)

4.1 General ManagerTable 4.1 Background of General Manager

Name of Partners

Identity Card Numbers

Permanent Address

Correspondence Address

E- Mail

Telephone Number/Fax Number

Date of Birth

Marital Status

Academic Qualification

Course Attended

Skills

Experiences

Present Occupation

Previous Business Experience

4.2 Administration Manager

Table 4.2 Background of Administration Manager4.3 Marketing Manager

Table 4.3 Background of Marketing Manager4.4 Operation ManagerTable 4.4 Background of Operation Manager

4.5 Financial Manager

Table 4.5 Background of Financial ManagerLOCATION OF THE BUSINESS5. Location of Business (Arial 12, BOLD)

5.1. Physical location of the project

(Map of businesss location)5.2. Building

(type, structure, size and rental cost of the building-with elaboration in bullets form)5.3. Basic amenities

(water, electricity, communication lines and etc-with elaboration in bullets form)MARKETING PLAN

6. Marketing Plan (Arial 12, BOLD)6.1Marketing Objectives(i) New business

(ii) Existing business

*Please refer slides for elaboration (Choose new business).

6.2Description of products (Arial 12, BOLD)This section describes the products offered by the business in detail. The proposed products or services should be related to the needs and wants of the target customers

Table 6.2.1 Product descriptionProductDescription

Features

Materials

Benefits

Table 6.2.2 Product ilustration

6.3Target market (Arial 12, BOLD)

Here, the customers profile in the target market area is explained. The entrepreneur should identify the different market segments that exist in the same market.

6.3.1Geographic Segmentation with explanation (in a paragraph)

6.3.2 Demographic Segmentation with explanation (in a paragraph)

6.3.3Psychographic Segmentation with explanation (in a paragraph) (if applicable)

6.4 Market size (Arial 12, BOLD)

6.4.1 Population table

6.4.1.1 Population 1

Table 6.4.1.1 Georgetown, Penang (example)

Type of outletNo of outletNo of items to needed (unit)Price/unit (RM)Total

Retailer203210.0012,600.00

Shopping Mall518210.0018,900.00

Mini Market305210.0031,500

Wholesaler

TOTAL2663,000

6.4.1.2 Population 2

Table 6.4.1.2 Population 2

Type of outletNo of outletNo of items to needed (unit)Price/unit (RM)Total

TOTAL

6.4.1.3 Population 3

Table 6.4.1.3 Population 3

Type of outletNo of outletNo of items to needed (unit)Price/unit (RM)Total

TOTAL

Note:

1 unit = 1 box

1 box = 6 laundry bags

Price per box = RM210

6.4.2 Total market size

Total market size = Population 1 + Population 2 + + Population n

= Total Table 6.4.1.1 + Total Table 6.4.1.2 +

= RM 803 040 /per month (example)6.5 Competitors (Arial 12, BOLD)

6.5.1 Identifying competitors (3 competitors) Table 6.5.1 Competitive analysisCompetitorsStrengthsWeaknesses

Competitor13 strengths3 weaknesses

Competitor2

Competitor3

Others

6.5.1 Ranking of the competitorsTable 6.5.2 Ranking of the competitorsRank NoCompetitors

1Competitor1

2Competitor2

3Competitor3

4Others

6.6 Market Share (Arial 12, BOLD)6.6.1 Market share before the entry of your company.

Table 6.6.1 Market share before the entry of your companyCompetitorBefore entrance(%)Amount (RM)

Competitor1

Competitor2

Competitor3

Others

TOTAL100803,040.00

Use pie charts for illustration

6.6.1 Adjusted market share after the entry of your company.

Table 6.6.2 Market share before the entry of your companyCompetitorAfter entrance

(%)Amount

(RM)Percentage of loss (%)

Competitor1Differentiation before and loss

Competitor2Differentiation before and loss

Competitor3Differentiation before and loss

OthersDifferentiation before and loss

Your company5 10 % 80,304.00-

TOTAL100803,040.00

Use pie charts for illustration6.7 Sales forecast (Arial 12, BOLD)Table 6.7 Sales ForecastingMonthSales Forecast

180,304.00

-

12

Year 1Total Month 1 Month 12

Year 2Increment of 10% from Year 1

Year 3Increment of 15% from Year 2

6.8 Market strategy (marketing mix) (Arial 12, BOLD)6.8.1 Product - detail about the product6.8.2 Price6.8.3 Place6.8.4 Promotion (promotion mix)6.9 Organization Chart for Marketing Department (Arial 12, BOLD)

Figure 6.9 Organizational Chart (Head of Department + workers)

6.10 Manpower Planning (Arial 12, BOLD)

Table 6.10 List of Marketing PersonnelPositionNo of Personnel

6.11 Schedule of Task and Responsibilities (Arial 12, BOLD)

Table 6.11 Task and Responsibilities of Marketing Personnel : Head + workersPositionTask and Responsibilities

6.12 Schedule of Remuneration (Arial 12, BOLD)

Table 6.11 Schedule of Remuneration plan of Marketing Personnel : Head + workersPositionQtyMonthly Salary

(RM)

(A)EPF

(RM)

(13 %)

(B)SOCSO

(RM)

(1.75%)

(C)Total

(A)+(B)+(C)

6.13 Marketing Budget (Arial 12, BOLD)

Table 6.12 Marketing BudgetItemFixed AssetsMonthly Expenses

(RM)

Other

Expenses

(RM)

Fixed Asset

Working capital

Other Expenses

TOTAL

OPERATIONAL PLAN

7 Operational Plan (Arial 12, BOLD)

7.1 Component of Operating Systems

7.1.1 Business Input

7.1.2 Transformation Process

7.1.3 Output

7.1.4 Feedback

7.1.5 External Environment

7.2 Process Planning for Manufacturing

7.2.1 Symbol of Process Chart

7.2.2 Process flow chart

7.2.3 Activity chart

7.3 Operations Layout7.3.1 Layout based on the product7.4 Production Planning

7.4.1 Sales forecast per month

Output per monthAverage sales forecast per month = ? (Refer 6.7)The sales price = ? (Refer 6.8.2)Number of output per month = Average sales forecast/Sale price per unit7.4.2 Number of output per day

If the number of working days per month is 24 days (6 days/week)= No. of output per month / no. working days per month7.4.3 Number of units per hour

Such as daily working hour = 8 hours= No. of output per day / daily working hours

7.5 Material Planning

7.5.1 Material Requirement Planning7.5.1.1 Raw Material Required per Month (Bill of Material)NoMaterialQuantity

(kg)Safety StockTotal Material RequirementPrice/Unit

(RM)Total Price

(RM)

1Sugar5005% of quantityQuantity + Safety Stock2.002.00 X total material required

(example)500505502.001,100

7.5.2 Identify supplierMaterialMaterial

SugarMalayan Sugar Mfg. Co. Berhad

798 Main Road

13600 Perai, Malaysia

7.6 Machine and Equipment Planning

7.6.1 Amount of machine & equipment required (Calculate for every machine usage)Planned Rate of Production per day X Standard production time

Machine productive time per dayExample : Welding machine

33

X 11.21 min

420 min (7 hours x 60 minutes)

= 0.88 @ 1 machine** Standard production time = one process cycle in minute/ quantity product per cycle

7.6.2 List of machine & equipmentMachineNo of machine

Welding machine

Cutter machine

Polish machine

7.6.3 List of machine supplier

MachineSupplier

Machine A

Machine BXXX Company + Address

7.6.4 Machine and Equipment (rental or purchase)ItemQuantityPrice/unit

(RM)Total Cost Monthly(RM)

Type of machine

(Mixer, drying, steam, packaging)

TOTAL

7.7 Manpower Planning

7.7.1 Organization Chart for Operation Department (Arial 12, BOLD)

Figure 7.7.1 Organizational Chart (Head of Department + workers)

7.7.2 Amount of direct labour required (Calculate for every man power)

Planned Rate of Production per day X Standard production time

Machine productive time per dayExample : Laboratory operator

33

X 0.9 min

420 min (7 hours x 60 minutes)

= 0.07 @ 1 operator** Standard production time = one process cycle in minute/ quantity product per cycle

7.7.3 List of Operation PersonnelPositionNo of personel

Laboratory operator

Operator

Cutter operator

Quality checker

I) 7.7.3 Schedule of task and responsibilitiesPositionTask and Responsibilities

7.7.4 Schedule of remuneration PositionNo .Monthly

Salary (RM)EPF

Contribution

(13%)

(RM)SOCSO

( 1.75% )

(RM)Amount

( RM )

Operation manager144005724972

Labotary supervisor12500325502875

Labotary technologist31200156244140

Operator31200156244140

TOTAL16127

7.8 Overhead requirement7.8.1 Operations Overhead (indirect labour/indirect material/insurance/maintenance and utilities)NoTypes of OverheadMonthly Cost (RM)

1Electricity8,000

2Water2,000

3Rental17,000

4Telephone400

5Internet500

6Box for transportation300

7Machine maintenance750

8Cleaner200

TOTAL

7.9 Total Operations Cost

Total Operation Cost = Direct Material Cost (total raw material) + Direct Labor Cost (total remuneration) + Overhead Cost (total operations overhead)

7.10 Cost per unit

Cost per unit = Total Operations Cost (RM)

Total number of Output (Output per month)7.11 Productivity Index (PI)

Productivity Index = Total value of Output (Sales forecast per month)

Total Value of input (Total Operation Cost)7.12 Location Plan (tell about factor affecting the business operation refer slide) if manufacturing premise located differently with main office7.13 Business and operation hours

Business hour = 8 hours per day (8.00 a.m until 6.00 p.m)

Operating hour = 8 hours per day (8.00 a.m until 6.00 p.m)7.14 License, permits and regulations required (Refer text book and choose relevant with your business)7.14.1 Manufacturing license

7.14.2 Building license

7.14.3 Environement license

7.15 Operations Budget

ItemFixed AssetsMonthly Expenses

(RM)

Other

Expenses

(RM)

Fixed Asset

Working Capital

Other Expenses

Pre-Operations

TOTAL

ADMINISTRATION PLAN

8. Administration Plan

8.1 Organizational Chart for Administration and Finance Department (Arial 12, BOLD)Figure 8.1 Organizational Chart (GM + Head and workers of Administration and Finance Department)

8.2 Manpower Planning (Arial 12, BOLD)

Table 8.2 List of Personnel (GM + Head and workers of Administration and Finance Department)

PositionNo of Personnel

8.3 Schedule of Task and Responsibilities (Arial 12, BOLD)

Table 8.3 Task and Responsibilities (GM + Head and workers of Administration and Finance Department)

PositionTask and Responsibilities

8.4 Schedule of Remuneration (Arial 12, BOLD)

Table 8.4 Schedule of RemunerationPositionQuantityMonthly Salary

(RM)

(A)EPF

(RM)

(13 %)

(B)SOCSO

(RM)

(1.75 %)

(C)Total

(A)+(B)+(C)

8.5 Office Furniture, Fitting and Office Supplies (Arial 12, BOLD)

Table 8.5.1 List of Office Furnitures and FittingsTypeQuantityPrice/Unit

(RM)

Total

(RM)

Table 8.5.2 List of Office SuppliesTypeQuantityPrice/Unit

(RM)

Total

(RM)

8.6 Administration Budget (Arial 12, BOLD)

Table 8.6 Administration BudgetItemFixed AssetsMonthly Expenses

(RM)

Other

Expenses

(RM)

Fixed Asset

Working capital

Other Expenses

TOTAL

FINANCIAL PLAN

9 Financial Plan (Arial 12, BOLD)9.1 Operating Budget

9.1.1 Administrative Department9.1.2 Marketing Department9.1.3 Operations Department9.2 Project Implementation Cost and Sources of Finance

9.3 Fixed Asset Depreciation Schedule

9.4 Loan and Hire Purchase Depreciation Schedule

9.5 Proforma Cashfow Statement

9.6 Proforma Income Statement

9.7 Proforma Balance Sheet

9.8 Financial Ratio Analysis

9.8.1 Liquidity Ratios

9.8.1.1 Current Ratios

( table and graph)

9.8.1.2 Quick Ratios

(table and graph)

9.8.2 Efficiency Ratios9.8.2.1 Inventory Turnover Ratios

(table and graph)

9.8.3 Profitability Ratios

9.8.3.1 Gross Profit Margin

(table and graph)

9.8.3.2 Net Profit Margin

(table and graph)

9.8.3.3 Return on Assets

(table and graph)

9.8.3.4 Return on Equity

(table and graph)

9.8.4 Solvency Ratios

9.8.4.1 Debt to Equity

(table and graph)

9.8.4.2 Debt to Assets

(table and graph)

9.8.4.3 Time Interest Earned

(table and graph)

APPENDICES

PARTNERSHIP AGREEMENT