CHAPTER 6 : BUSINESS PLAN

TYPES OF BUSINESS
PLAN

1. Concept-Based Business Plan

2. Business plan for bank loan
Retailing Business Plan
Internet Business Plan
Venture Capital Business Plan
Agricultural Business Plan
Franchise Business Plan

WHO NEEDS BUSINESS

PLAN?
Financial Institutions
Supplier
Investors

BUSINESS PLAN
COMPONENTS

1. INTRODUCTION
Main Page
Contents
Executive Summary
2. BUSINESS MATTER
The Industry
The Company
The Product
Market Analysis
Marketing Plan
Production or Operation Plan
Management Plan
3. FINANCIAL INFORMATION
4. ATTACHMENT SUPPORT

CHAPTER 7 : STARTING &

DEVELOPING NEW BUSINESS

IMPORTANT CONSIDERATIONS BEFORE STARTING-UP A BUSINESS

Evaluate Self Capability

Capital & Financial Status
Location of the business
Rules & Regulations
Raw materials & equipments
Competition
Customers & Products Distribution

CRITICAL FACTORS IN STARTING A BUSINESS

Uniqueness.
Size of Investment
c
Sales forecast / Profit expectation
Product Availability
Customer Availability

METHODS OF STARTING A BUSINESS

o Starting-up a New Business
o Buy or Take Over an Existing Business
o Buying a Franchise Business

BUSINESS FORMS

Limited Company
Private Limited Company
Public Limited Company

1. Single-owning Business
2. Business Partnership

CHAPTER 8 : BUSINESS

TYPES OF CAPITAL
Fixed Capital
Working Capital
Growth Capital

FORMS OF FINANCING

Debt/Loan Financing
Equity Financing

TYPES OF DEBT FINANCING

1. Short Termed Loan
Overdraft
Revolving Credit
2. Long Termed Loan
Termed Loan
Hire Purchase
Factoring
Pawnshops

TYPES OF DEBT FINANCING

Short Termed Loan
Long Termed Loans

FORM OF ISLAMIC SYARIAH

BASED FUNDING

SOURCES OF EQUITY FINANCING

Owners Capital
DISADVANTAGES
Family & Friends OF FRANCHISE
BUSINESS
TO FRANCHISOR
Informal
Investor
Venture
Capital
RESPONSIBILITIES
OF
High
Self Returns
Owned vs. Franchise Units

FRANCHISOR
Ease
Difficulty

of Exitin selecting a good

franchisee
FRANCHISE
PACKAGE
BASIC CONCEPTS
Communication
FRANCHISE
PROMOTION PACKAGE
DISADVANTAGES
TO FRANCHISEE
The Franchisor
Disclosure Document
Franchisee
Capital too high
Master
Franchisee
Agreement
Franchise
Fail to become
a profitable biz
Real Estate Franchise
Homegrown
Franchisor
OPERATION
PACKAGE

Al Mudharabah
Al Musyarakah
Al Murabahah
Bai' Bithaman Ajil
Bai' Al Dayn
AI Ijarah
Al Wakalah
ADVANTAGES OF FRANCHISE
BUSINESS TO THE FRANCHISOR
Growth cost is lower
Lower Number of
Workforce/Staf
Purchasing in bulk
Centralized advertising &
promotion

CHAPTER 9 : FRANCHISING

ADVANTAGES OF FRANCHISE
BUSINESS
THE FRANCHISEE
TYPES OFTO
FRANCHISE
SystemFormat
of Business
that is

Business
Franchise
Brand
Name
or Trade Mark
proven
Successful

Does not require experience

Franchise

Standardized
Quality Control
Franchise
by Conversion

CHAPTER 10 : FAMILY
BUSINESS
CONTROLLED & MANAGED
BY MEMBERS OF THE FAMILY

CATEGORY FAMILY
BUSINESS

CONTROLLED BY MEMBERS
OF THE FAMILY BUT
MANAGED BY OUTSIDER

CONTROLLED AND
MANAGED BY NON-FAMILY
MEMBERS

SIZE, IMPORTANCE AND FAILURE OF FAMILY BUSINESS

o Four reasons why family firms fail to transfer the business to the next
generation :
Lack or fail to plan
Less business potential
Owner's refusal to release or transfer parts of its ownership
The reluctance of children to join the family firm
INTERNATIONAL BUSINESS
METHODS
The Method Of Importation
(Import)
Method Of Exports (Export)
Method Of Forming Strategic
Alliances (Strategic Alliance)
Export Management
Companies (Export
Management Company)
Foreign Distributor (Foreign
Distributors)
Foreign Agents (Foreign
Agents)
The Establishment Of Local
Office (Setting Up A Local
Office)
Production Contract (Contract
Manufacturing)
Joint Venture (Joint Venture)
Foreign Direct Investment
(Foreign Direct Investment)
Subsidiary (Subsidiary)
Licensing (Licensing)

CHAPTER 11 : ENTREPRENEURS
AND INTERNATIONAL MARKET
ADVANTAGES OF DEVELOPING
INTERNATIONAL BUSINESS

Extend the Product Life Cycle

Improve Sales and Profits
Reduce Production Cost
Balancing Sales Decline in Local
Market
Improving the Quality of Products

International Trade Barriers

Tarifs (Tarifs)
Quota (Quota)
Export Subsidies (Export Subsidy)
Control Of Foreign Exchange
(Foreign Exchange Control)
Embargo
Prevent The Accumulation (AntiDumping)
Trading Block

CONSTRAINTS TO ENTER INTERNATIONAL

MARKETS
Socio-Cultural
Lack of Capital or Limited
Political and Legal
Economic Changes
Patriotism
o Technology
o
o
o
o
o