Business Plan Outline - Guidance

BUSINESS PLAN OUTLINE

Business












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


PURPOSE


2. 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 institutions
2.3. To act as a guideline for the management of the proposed business
2.4. To allocate business resources effectively


COMPANY BACKGROUND


3. Company Background (Arial 12, BOLD)
Table 3.1 Company Background
Name of the Company
Business Address
Correspondence Address
Telephone Number
Form of Business
Main Activity
Date of Commencement
Date of Registration
Registration Number
Name of Bank
Bank Account Number


SHAREHOLDERS BACKGROUND


4. Background of Shareholders (Arial 12, BOLD)
4.1.1. General Manager
Table 4.1  Background of General Manager
Name of Partners
Identity Card Numbers
Permanent Address
Correspondence Address
Telephone Number
Date of Birth
Marital Status
Academic Qualification
Course Attended
Skills
Experiences
Present Occupation
Previous Business Experience

4.1.2 Human Resource Manager
Table 4.2 Background of Human Resource Manager
4.1.3 Marketing Manager
Table 4.3 Background of Marketing Manager
4.1.4 Operation Manager
Table 4.4 Background of Operation Manager
4.1.5 Financial Manager
Table 4.5 Background of Financial Manager


LOCATION OF THE BUSINESS


5. Location of Business (Arial 12, BOLD)
5.1.1. Physical location of the project
(Map of business’s location)
5.1.2. Building
(type, structure, condition, size and cost of the building)
5.1.3. Basic amenities
(water, electricity, telephone lines and etc)


ADMINISTRATION PLAN


6. Administration Plan
6.1. Vision, Mission, Objectives and Logo
6.1.1. Vision
6.1.2. Mission
6.1.3. Objectives (3 objectives)
6.1.4. Logo and Motto
(description of  logo and motto)

6.2. Organizational Chart (Arial 12, BOLD)
Figure 6.1 Organizational Chart

6.3. Manpower Planning (Arial 12, BOLD)
Table 6.1  List of Administrative Personnel
Position No of Personnel

6.4. Task and Responsibilities of Key Personnel (Arial 12, BOLD)
Table 6.2 Task and Responsibilities of Key Personnel
Position Task and Responsibilities

6.5. Schedule of Remuneration (Arial 12, BOLD)
Table 6.3  Schedule of Remuneration
Position
Qty
Monthly Salary  (RM) (A)
EPF (RM) (State13 %) (B)
SOCSO (RM) (State2.5 %) (C)
Total (A)+(B)+(C)

6.6. Office Furniture and Fitting (Arial 12, BOLD)
Table 6.4  List of Office Furnitures and Fittings
Type
Qty
Price/Unit (RM)
Total (RM)

6.7. Administration Budget (Arial 12, BOLD)
Table 6.5  Administration Budget
Item Fix Assets Monthly Expenses (RM)
Other
Expenses (RM)
TOTAL


MARKETING PLAN


7. Marketing Plan (Arial 12, BOLD)
Marketing is a process of creating and attracting customers to the company in detail. The entrepreneur should realize that customers are the lifeblood of a business venture

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

Table 7.1 Product description
Product Description
Features
Materials
Benefits

7.2. Target 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.
7.2.1. Geographic Segmentation
7.2.2. Demographic Segmentation
7.2.3. Psychographic Segmentation

7.3. Market size (Arial 12, BOLD)
7.3.1. Population table

7.3.1.1. Population 1
Table 7.1 Georgetown, Penang (example)
Type of outlet No of outlet No of items to needed (unit) Price/unit (RM)   Total
Retailer         20                 3                                         210.00                 12,600.00
Shopping Mall 5                 18                                         210.00                     18,900.00
Mini Market 30                   5                                         210.00                 31,500
TOTAL                                 26                                                                 63,000

7.3.1.2. Population 2
Table 7.2 Population 2
Type of outlet No of outlet No of items to needed (unit) Price/unit (RM) Total
TOTAL

7.3.1.3. Population 3
Table 7.3 Population 3
Type of outlet No of outlet No of items to needed (unit) Price/unit (RM) Total
TOTAL

Note:
1 unit = 1 box
1 box = 6 laundry bags
Price per box = RM210


7.3.2. Total market size
Total market size = Population 1 + Population 2 + …… + Population n
= Total Table 7.1 + Total Table 7.2 + …… + Total Table 7.n
= RM 803 040 (example)

7.4. Competitors (Arial 12, BOLD)
7.4.1. Identifying competitors (3 competitors)
Table 7.4 Competitive analysis
Competitors Strengths Weaknesses
Competitor1 3 strengths 3 weaknesses
Competitor2
Competitor3


7.4.2. Ranking of the competitors
Table 7.5 Ranking of the competitors
Rank No Competitors
1 Competitor1
2 Competitor2
3 Competitor3

7.5. Market Share (Arial 12, BOLD)
7.5.1. Market share before the entry of your company.
Table 7.6 Market share before the entry of your company
Competitor Before entrance   (%) Amount
(RM)
Competitor1
Competitor2
Competitor3
TOTAL         100                                 803,040.00

Use pie charts for illustration

7.5.2. Adjusted market share after the entry of your company.
Table 7.6 Market share before the entry of your company
Competitor After entrance(%) Amount(RM) Percentage of loss (%)
Competitor1
Competitor2
Competitor3
Your company 10                         80,304.00  -
TOTAL         100                         803,040.00

Use pie charts for illustration

7.6. Sales forecast (Arial 12, BOLD)
Table 7.7 Sales Forecasting

Month Sales Forecast
1 80,304.00
-
12
Year 1 Total Month 1 – Month 12
Year 2 Increment of 5% from Year 1
Year 3 Increment of 10% from Year 2

7.7. Market strategy (marketing mix) (Arial 12, BOLD)
7.7.1. Product
7.7.2. Price
7.7.3. Place
7.7.4. Promotion (promotion mix)

7.8. Manpower Planning (Arial 12, BOLD)
Table 7.8  List of Marketing Personnel
Position No of Personnel


7.9. Task and Responsibilities (Arial 12, BOLD)
Table 7.9 Task and Responsibilities
Position Task and Responsibilities


7.10. Schedule of Remuneration (Arial 12, BOLD)
Table 7.10  Schedule of Remuneration plan
Position
Qty
Monthly Salary  (RM) (A)
EPF (RM) (State13 %) (B)
SOCSO (RM) (State 2.5%) (C)
Total(A)+(B)+(C)


7.11. Marketing Budget (Arial 12, BOLD)
Table 7.11  Marketing Budget
Item Fix Assets
Monthly Expenses
Other
Expenses
Fixed Asset
Monthly Expenses
Other Expenses
TOTAL


OPERATIONAL PLAN


8. Operational Plan (Arial 12, BOLD)
8.1. Symbol of Process Chart

8.2. Process Flow Chart for Manufacturing
8.2.1 Process of Flow Chart
8.2.2 Activity Chart

8.3. Production Planning
Output per month
Average sales forecast per month = ?
The sales price = ?
So, the amount of output to be purchased per month =  ?

Number of output per month
= Sales forecast/sale per unit

Number of output per day
If the number of working days per month is 24 days (6 days/week)

Number of units per hour
Such as daily working hour = 8 hours


8.4. Operation Layout
Layout based on product
Layout based on process

8.5. Material  Planning
8.5.1. Material Requirement Planning
8.5.1.1. Raw Material Required per Month (Bill of Material)
No Material Quantity    Safety Stock Total Material Requirement Price/Unit  Total Price
1 Sugar 500 10% of quantity Quantity + Safety Stock 2.00   2.00  X total material required
(example) 500 50                         550                                 2.00   1,100

8.5.2. Identify supplier
Material Material
Sugar Malayan Sugar Mfg. Co. Berhad
798 Main Road
13600 Perai, Malaysia

8.5.3. Capacity planning
8.5.3.1. Manpower requirement
i) laboratory operator
ii) operator example of man power, so calculate
iii) cutter operator according to  avery man power
iv) quality checker

example
Laboratory operator
( Planned Rate of Production per day / Worker productive time per day ) X   Standard production time

Example:     ( 33 / 420 min (7 hours x 6 days) ) X  0.9 min

= 0.07 @ 1 operator


8.5.3.2. Machine requirement
i) Welding machine  example of machine required,
ii) cutter machine  so calculate for avery machine usage
iii) polish machine

example
Welding machine
( Planned Rate of Production per day / Machine productive time per day ) X Standard production time

Example:       ( 33 / 420 min (7 hours x 6 days) ) X  11.21 min

= 0.88 @ 1 machine

8.5.3.3. Machine and Equipment (rental or purchase)
Item Quantity Price/unit
(RM) Total Cost
(RM) monthly
Type of machine
(Mixer, drying, steam, packaging)
TOTAL


8.6 Operations Cost
8.6.1 Operations Overhead
No Types of Overhead Monthly Cost (RM)
1 Electricity 8,000
2 Water 2,000
3 Rental 17,000
4 Telephone 400
5 Internet 500
TOTAL

8.6.1.1 Total Operations Cost

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

8.6.1.2 Cost per unit
Cost per unit     = Total Operations Cost (RM) /
Total number of Output (Output per month)

8.6.1.3 Productivity Index (PI)
 Productivity Index (PI)
=  Total value of Output (Sales forecast per month) /
    Total Value of input (Total Operation Cost)

   
8.7 Remuneration table for Operations Staff
Position
Qty
Monthly Salary  (RM) (A)
EPF (RM) (State %) (B)
SOCSO (RM) (State %) (C)
Total (A)+(B)+(C)


8.8 Operations Budget
Item Fix Assets Monthly Expenses (RM)
Other
Expenses (RM)
Fixed Asset
Working Capital
Other Expenses
Pre-Operations
TOTAL


FINANCIAL PLAN


9 Financial Plan (Arial 12, BOLD)
9.6 Introduction
9.7 Objectives
9.8 Project Implementation Cost and Sources of Finance
9.9 Operating Budget
9.9.1 Administrative
9.9.2 Marketing
9.9.3 Operations
9.10 Fixed Asset Depreciation Schedule
9.11 Loan and Hire Purchase Depreciation Schedule
9.12 Proforma Cashfow Statement
9.13 Proforma Income Statement
9.14 Proforma Balance Sheet
9.15 Financial Ratio Analysis
9.15.1 Liquidity Ratios
9.15.1.1 Current Ratios
( table and graph)
9.15.1.2 Quick Ratios
(table and graph)

9.15.2 Efficiency Ratios
9.15.2.1 Inventory Turnover Ratios
(table and graph)

9.15.3 Profitability Ratios
9.15.3.1 Gross Profit Margin
(table and graph)

9.15.3.2 Net Profit Margin
(table and graph)
9.15.3.3 Return on Assets
(table and graph)
9.15.3.4 Return on Equity
(table and graph)

9.15.4 Solvency Ratios
9.15.4.1 Debt to Equity
(table and graph)
9.15.4.2 Debt to Assets
(table and graph)
9.15.4.3 Time Interest Earned
(table and graph)


Business Plan Outline - Guidance : sources UiTM Arau

ps : hopes helping, and sorry for the tables, can't make it look nice in blogspot 

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