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Entrepreneurship Course

EMBA Batch

April 2013 Session 4

The Program
Session Topic Curriculum Welcome the students Explain course and schedule The Contract Students expectation of the course Interaction I the Business Case Study #1 Interaction The Name Ball Interaction-I the Investor Part 1 Discussion Singapore Incorporated and Entrepreneurship Presentation Entrepreneurship Process Presentation Leadership and Entrepreneurship explained Interaction I the Business Case Study #2 Discussion Doing Business in India and China Interaction Jockey Quiz Presentation Myths about entrepreneurship Presentation The ten mistakes a new entrepreneur make Interaction I the Business Case Study #3 Self Assessment - Are you the entrepreneurial type? Discussion Challenges of an Entrepreneur Presentation Generating ideas and opportunities Presentation Types of Business Plan Presentation Making assumptions and identifying constraints Interaction I the Business Case Study #4 Interaction Briefing on The Coffee Stall Business Discussion Business Entertainment Understanding of social entrepreneurship Learning the value of business (The Coffee Stall Business) Date
9th April 7.00 pm to 8.15pm

Introduction

Entrepreneurship

9th April 9.00 pm to 10.15 pm

The Entrepreneur

10th April 7.00 pm to 8.15 pm

Business Planning

10th April 9.00 pm to 10.15 pm

5 6

Site Visit at Dignity Kitchen

11th April 6.00 pm to 8.30 pm

The Program
Session Topic Curriculum Presentation Understanding and evaluating business risks Presentation Taking Risk Presentation Funding Types and Process Presentation Closing the Deal Interaction - I the Investor Part 2 Interaction I the Business Case Study #5 Discussion - My Business Values Presentation Business structures & its incorporation Presentation Processes and System Presentation Maintaining a business Presentation Growth of a Business Interaction I the Business Case Study #6 Discussion Learning from the $100 Experience Presentation Death of a business Presentation Why business failed Presentation Element of Success in Business Discussion Bad Business Practice I the Business Individual Assessment The $100 Experience Business Plan Presentation Course Review Result of your Assessment Review of The Contract Date

Getting Started in Business

13th April
2.00 pm to 3.15pm

Doing Business

13th April
4.00 pm to 5.15 pm

Success in Business

13th April
6.00 pm to 7.15 pm

10 11

Assessment Assessment

14th April
10.00 am to 11.15 am

14th April
12.00 pm to 1.15 pm

12

Conclusion

14th April
2.00 pm to 3.15 pm

Session 4 Business Planning


Presentation

: Generating Ideas and Opportunities Business Planning Approach to Strategic Planning Interaction : I the Business Case Study #4 Briefing on The Coffee Stall Business Discussion Guan Xi and Business Entertainment Background Reading Questions and Answers

Christopher Benjamin Consultancy Services

Ideas and Opportunities

Presentation
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1990

6
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2007

7
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Ideas and Opportunities


.. back in Singapore

Marina Bay Sands Integrated Resort

Opportunities?
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Ideas and Opportunities


What is an opportunity?
The dictionary defines opportunity as:
1: a favorable juncture of circumstances; 2: a good chance for advancement or progress.

Opportunities exist when there is a problem to solve,

where there is a need or a want.

What is an idea?
An idea is a plan for action.

In entrepreneurship, it is critical to understand how these two concepts are different as well as how they relate.
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Ideas and Opportunities

Opportunities can be defined as problems or needs,

while an idea may be identified as the solution. An innovative idea is of no value if there is no opportunity or market.

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Ideas and Opportunities


Ideas Instant Noodles Avon Cosmetics Cadbury Chocolate Opportunities World War 2 and the need for food Sell direct Therapeutic potion to pleasant drink with sugar added

Heinz Baked Beans


Yale Macdonald Sony Walkman Mobile Phone

No artificial preservatives, no impurities, no coloring and money back guarantee


Hobbs Lock for security Franchise for ease of business startup Personalise music system Need for communication

Many more.
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Ideas and Opportunities

Identify the needs not wants

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Ideas and Opportunities


Maslows Hierarchy of Needs
Self Actualisation Esteem Needs Self esteem Recognition Status Social Needs Sense of belonging Love Safety Needs Security Protection Physiological Needs Hunger Thirst
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Ideas and Opportunities

According to a study by The National Federation of Independent Business:

"2,994 start-ups showed that founders who spent a long time in study, reflection, and planning were no more likely to survive their first three years than people who seized opportunities without planning."
Procrastination.

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Interaction
Given a recent HEADLINE
What are the opportunities?

Then what are the ideas??????


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Ideas and Opportunities


The World Trade Centre September 11th 2001

Ideas & Opportunities???

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Evaluating Opportunity
1. Has the opportunity been considered by others? 2. 3. 4. 5. If yes, have others selected or acted upon it?

Can I determine how long the opportunity may last? Am I satisfied that I have accurate and sufficient information about the opportunity? Have I specifically defined the opportunity? Will people care about the opportunity?

6.
7. 8. 9.

Is this the best opportunity I can envision?


Can I generate a good idea to match the opportunity? Does the opportunity suit my personal goals? Are there any regulatory systems that may restrict or limit the opportunity I envision? Regulatory systems may include laws, bylaws, school rules or others.

10. What is the target market?


Have I studied the lifestyle and created a customer profile of the type of consumers that would take interest in this opportunity.

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Missed Opportunities
Missed Opportunity = EMOTIONAL BLOCK
An emotional block may be overcome with greater self confidence and self esteem. Fear, distrust, desire for security, and the inability to change may prevent you from generating creative ideas. Staying flexibility is a great method for overcoming an emotional block. Decision in seizing opportunity has to look at in the context of GOOD and BAD; not RIGHT and WRONG.

This is your Life


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Chrisbens Axis of Strategic Directions

Interaction
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Ideas and Opportunities


Value Chain Demographic

Industry

Application

Chrisbens Three Axis Approach


Globalisation To Customers
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Business Planning

Presentation
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What is a business plan?


A business plan is a formal presentation (often a document and/or Power Point slides) that outlines how you will launch, market, manage and finance your business idea. It shows how well you and your partners are qualified to run the business. Anyone reviewing your business plan should be able to see how much thought you have put into your business idea and opportunity. a basic planning tool that bridges the gap between thinking and doing a physical printout of your mental idea
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Why is business planning so important?

A business plan precisely defines your business, identifies your goals, and serves as your firms resume. The basic components include a current and pro forma balance sheet, an income statement, and a cash flow analysis. It helps you allocate resources properly, handle unforeseen complications, and make good business decisions. Additionally, it informs sales personnel, suppliers, and others about your operations and goals.
From the US Small Business Association

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Type of Business Plans

STRATEGIC PLANS outline the actions necessary to achieve longrange goals. Applies mainly to on-going business. TACTICAL OR OPERATING PLANS focus on the short-run, usually one year. Normally as a result of changes affecting the business, where a review was necessary FUNCTIONAL PLANS specify short- to medium-range actions having to do with specific aspects of the business, such as marketing, finance, manufacturing, or personnel.

INVESTMENT PLAN, used by small business owners to gain access to financing from banks or venture capitalists.

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Who will see my business plan?

Anyone who is willing to take a risk on being a part of your business venture will see your plan. This includes investors such as a bank or other supporting organization or individuals that may lend you money to get started.
Other interested parties include organizations that may choose to partner with you, as well as suppliers and buyers who will depend on your business to buy or sell their products.

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Approach to Investment Planning

Presentation
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Details of a Investment Plan

1. Executive Summary
2. Company Background
Business History Growth and Financial Objectives Legal Structure and Ownership Company Location and Facilities

3. Plans for Financing the Business

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Executive Summary
The Executive Summary is the most critical element of the business plan. If it does not grab the investor's attention, the investor will neither read nor request the full business plan. As such, spend time developing the best possible summary. Work to get it in the hands of the right investors by creating two versions : Stand-alone executive summary Plan predecessor
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Executive Summary
The Plan Predecessor
When the Executive Summary precedes the business plan, its length should be short, typically only one to two pages and certainly no longer than three pages. This is because the Executive Summary is not meant to tell the whole story of the business opportunity. Rather, the summary must simply stimulate and motivate the investor to learn more about the company in the body of the plan.

The Stand-alone
The second type of Executive Summary is a stand-alone document. That is, it is given, by itself, to investors for their initial review. Purpose is to entice interest in your plan. If interested, the investor will then request the full business plan. A stand-alone Executive Summary is often used to limit the flow of information. That is, if an investor is not interested in the general opportunity that your summary presents, you don't want to reveal to them intimate details of your plan.
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Details of a Investment Plan


4. Organization Team Members Organizational Structure Other Key Employees 5. Shareholding Structure and Principal Shareholders 6. Market Analysis Summary Industry Analysis Target Market Customer Profile Major competitors and participants Market Segmentation Projected Market Growth and Market Share Objectives
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Details of a Investment Plan


7. Product / Service Offering Product / Service Summary Product / Service Uniqueness Product / Service Descriptions Competitive Comparisons Research and Development Patents and Trademarks 9. Manufacturing / Production Plan (optional) Production Issues Current Plant Production and Capacity Quality Control Labor Force

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Details of a Investment Plan


10. Marketing Plan Creating and Maintaining Customers Product Pricing Strategy Product Positioning Sales and Distribution Plan Promotional Strategy 11. Financial Plan and Analysis Balance Sheet Income Statement Cash Flow Budget Startup Cost Assumptions

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Where do I begin?
Be aware of some general rules for preparing a plan:
BE HONEST with yourself and your teammates, investors, and others involved in your plan.
PRACTICE GOOD WRITING SKILLS: use clear language, accentuating the positive. SHOW YOU HAVE DONE YOUR HOMEWORK: make sure it is clear that you have carefully evaluated your business idea and opportunity, and that you have taken the time to look at other business cases, both the successes and the failures STRESS YOUR UNIQUENESS: how do you and your business idea stand out from the crowd? MAKE THE PLAN LEGIBLE AND NEAT: use appropriate print and paper. USE CHARTS, TABLES, ILLUSTRATIONS AND PHOTOGRAPHS when applicable BE REALISTIC: do not exaggerate what you will be able to do with your time and resources.

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Financial for a Culinary School

Presentation
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Projected Capital Expenditure and Equipping Plan


Phase 1 From M1 To M6 (6 months) $ 295,415 82,690 Phase 2 From M7 To M12 (6 months) $ 0 0 Phase 3 From M13 To M24 (12 months) $ 0 0 Total From M1 To M24 (24 months) $ 295,415 82,690

Capital Expenditure Renovation Fixtures and Fittings

Equipments

93,750

93,750

Total

471,855

471,855

Downpayment (20%) Hire Purchase and Leasing (80%) Finance Cost (5% PER ANNUM) Installment Payable (5 YEARS)

94,371 377,484 9,437 47,186

0 0 9,437 47,186

0 0 18,874 94,371

94,371 377,484 37,748 188,742

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Projected Capital Expenditure and Equipping Plan - Detailed


Renovation Plumbing & Waste Work Fire Fighting (Provisional) Air Cond and Exhaust Flooring / Ceiling / Wall Work Electrical Work Total Fixtures and Fittings Reception / Admin Training Room Food Court Dining Area Stalls & Catering Kitchen $14,450 $14,750 $39,040 $14,450 $82,690 $63,200 $28,000 $87,000 $92,215 $25,000 $295,415

Total
Equipments Computer and Peripherals Teaching Aids Kitchen Equipment Changing Rooms Lockers Signages and Graphics Total
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$10,000 $15,000 $56,000 $6,750 $6,000 $93,750


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Projected Staffing Plan


Phase 1 From M1 To M6 (6 months) $ Assume Operational M4 Executive and Admin Office Executive director ($5,000:$8,000 per month) Accountant ($4,000 per month) Business development executive ($2,500 pm) Clerical staff (2 pax at $1,500 per month each) Training Division Training director ($5,000 per month) Trainers (6 pax at $2,000 per month each) Program coordinator ($1,500 per month) Training coordinator ($1,500 per month) Food Court Division Operation manager ($3,000 per month) Catering staff (2 pax at $1,000 per month each) Cashier (2 pax at $1,500 per month each) Cleaner (2 pax at $1,500 per month each) 30,000 24,000 0 0 30,000 24,000 15,000 9,000 96,000 48,000 30,000 36,000 156,000 96,000 45,000 45,000 Phase 2 From M7 To M12 (6 months) $ Phase 3 From M13 To M24 (12 months) $ Total From M1 To M24 (24 months) $

Staff

30,000 12,000 0 0

30,000 72,000 9,000 9,000

60,000 144,000 18,000 18,000

120,000 228,000 27,000 27,000

18,000 6,000 0 0

18,000 12,000 36,000 36,000

36,000 24,000 36,000 36,000

72,000 42,000 72,000 72,000

Gross Salary Employer's CPF (14.5%) Skill Development Levy (0.25%)

120,000 15,660 300

300,000 35,670 750

582,000 73,950 1,455

1,002,000 125,280 2,505

Total Payroll Cost

135,960

336,420

657,405

1,129,785

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Projected Essential Operating Expenses


Phase 1 From M1 To M6 (6 months) $ 21,732 28,800 2,700 21,000 15,000 12,000 Phase 2 From M7 To M12 (6 months) $ 21,732 28,800 2,700 21,000 10,000 12,000 Phase 3 From M13 To M24 (12 months) $ 43,464 57,600 5,400 42,000 12,000 24,000 Total From M1 To M24 (24 months) $ 86,928 115,200 10,800 84,000 37,000 48,000

Fixed Expenses Rental Utilities Telecommunication Maintenance and upkeep Advertising & Promotion Miscellaneous

Operating Expenses

101,232

96,232

184,464

381,928

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Projected Essential Operating Expenses - Assumptions


Projected Essential Operating Expenses - Assumptions (sq ft) 7244 $0.50 $4,800 $450 $3,500 $2,000 Total Cost $3,622.00

Training Centre area Rental per sf Utilities per month Telecom per month Maintenance per month Miscellaneous per month

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Projected Income and Revenue Received


Phase 1 From M1 To M6 (6 months) $ Assume Operational M4 Phase 2 From M7 To M12 (6 months) $ Phase 3 From M13 To M24 (12 months) $ Total From M1 To M24 (24 months) $

Income

Training Income Number of students per month Average training fee charged per student per month Total training fee received for the phase Food Court Income Food Stalls Number of stalls Average sales proceeds per stall per month Total Food Stalls Sales for the phase Drink Stall Average sales proceeds per month Total Drink Stall Sales for the phase Catering Income Average 3 meals per day for 24 days per month Cost of per meal Number of person per month Total catering sales for the phase 30 800 72,000 60 800 288,000 90 900 972,000

1,332,000

6 7,200 129,600 10,080 30,240

6 7,200 259,200 10,080 60,480

10 7,200 864,000 10,080 120,960

1,252,800

211,680

72 1.50 400 129,600

72 1.50 400 259,200

72 1.50 2,000 2,592,000

2,980,800

Total Revenue

361,440

866,880

4,548,960

5,777,280

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Projected Profit and Loss Statement


Phase 1 From M1 To M6 (6 months) $ Phase 2 From M7 To M12 (6 months) $ Phase 3 From M13 To M24 (12 months) $ Total From M1 To M24 (24 months) $

Profit and Loss

REVENUE COST OF SALES

361,440 (177,840)

866,880 (427,968)

4,548,960 (2,761,776)

5,777,280 (3,367,584)

GROSS PROFIT STAFF COST ESSENTIAL OPERATING COST PROFIT/(LOSS) BEFORE DEPRECIATION DEPRECIATION OF FIXED ASSETS (5 YEARS) PROFIT/(LOSS) AFTER DEPRECIATION FINANCE COST PROFIT/(LOSS) BEFORE TAXATION

183,600 (135,960) (101,232) (53,592) (47,186) (100,778) (9,437) (110,215)

438,912 (336,420) (96,232) 6,260 (47,186) (40,926) (9,437) (50,363)

1,787,184 (657,405) (184,464) 945,315 (94,371) 850,944 (18,874) 832,070

2,409,696 (1,129,785) (381,928) 897,983 (188,742) 709,241 (37,748) 671,493

TAXATION (18%)
PROFIT AFTER TAXATION

0
(110,215)

0
(50,363)

(149,773)
682,297

(149,773)
521,720

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Project Cash Flow Plan


Phase 1 From M1 To M6 (6 months) $ Phase 2 From M7 To M12 (6 months) $ Phase 3 From M13 To M24 (12 months) $ Total From M1 To M24 (24 months) $

Cash Flow

Profit/(Loss) before taxation Add: Depreciation of fixed assets Finance Cost CASH FLOW/(IN USED) FROM OPERATION CASH FLOW FROM INVESTING ACTIVITIES Purchase of fixed assets

(110,215)

(50,363)

832,070

671,493

47,186 9,437
(53,592)

47,186 9,437
6,260

94,371 18,874
945,315

188,742 37,748
897,983

(471,855) (525,447)

0 6,260

0 945,315

(471,855) 426,128

CASH FLOW FROM FINANCING ACTIVITIES Issurance of share capital Hire purchase and leasing Repayment of hire purchase and leasing

250,000 377,484 (47,186) 580,299 54,852 0 54,852

0 0 (47,186) (47,186) (40,926) 54,852 13,926

0 0 (94,371) (94,371) 850,944 13,926 864,870

250,000 377,484 (188,742) 438,742 864,870 0 864,870

CASH SURPLUS/(DEFICIT) CASH BROUGHT FORWARD CASH CARRIED FORWARD

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Projected Balance Sheet


Phase 1 From M1 To M6 (6 months) $ Phase 2 From M7 To M12 (6 months) $ Phase 3 From M13 To M24 (12 months) $

Balance Sheet

SHARE CAPITAL PROFIT AND LOSS Shareholders' equity FIXED ASSETS CURRENT ASSETS Cash and cash equivalents Total Asset

250,000 (110,215) 139,785 424,670

250,000 (160,577) 89,423 377,484

250,000 521,720 771,720 283,113

54,852 479,521

13,926 391,410

864,870 1,147,983

Less: CURRENT LIABILITIES Hire purchase creditors Provision for taxation Government grant

339,736 0 0 339,736
139,785

301,987 0 0 301,987
89,423

226,490 149,773 0 376,263


771,720

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Projected Monthly Cash Flow for Year 1


M1 Income Capital Loan Training fee Food court revenue Catering Sponsorship Total Income M2 M3 M4 M5 M6 Total $250,000 $0 $0 $0 $0 $0 $250,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $24,000 $53,280 $43,200 $0 $120,480 $0 $0 $24,000 $53,280 $43,200 $0 $120,480 $0 $0 $24,000 $53,280 $43,200 $0 $120,480 $250,000 $0 $72,000 $159,840 $129,600 $0 $611,440

Expenditure Cost of sales Salary CPF Skill Development Levy Capital expenditure Rent Utilities Telecommunication Maintenance & Upkeep Downpayment Advertising & Promotion Miscellaneous Total Expenditure Cash Surplus (Deficit) Cash brought forward Cash carried forward

$0 $20,000 $2,610 $50 $7,864 $3,622 $4,800 $450 $3,500 $94,371 $6,000 $2,000 145,267 104,733 0 104,733

$0 $20,000 $2,610 $50 $7,864 $3,622 $4,800 $450 $3,500 $0 $2,000 44,896 (44,896) 104,733 59,837

$0 $20,000 $2,610 $50 $7,864 $3,622 $4,800 $450 $3,500 $0 $3,000 $2,000 47,896 (47,896) 59,837 11,940

$59,280 $20,000 $2,610 $50 $7,864 $3,622 $4,800 $450 $3,500 $0 $2,000 104,176 16,304 11,940 28,244

$59,280 $20,000 $2,610 $50 $7,864 $3,622 $4,800 $450 $3,500 $0 $6,000 $2,000 110,176 10,304 28,244 38,548

$59,280 $20,000 $2,610 $50 $7,864 $3,622 $4,800 $450 $3,500 $0 $2,000 104,176 16,304 38,548 54,852

$177,840 $120,000 $15,660 $300 $47,186 $21,732 $28,800 $2,700 $21,000 $94,371 $15,000 $12,000 556,589 54,852

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Projected Monthly Cash Flow for Year 1


M7 Income Capital Loan Training fee Food court revenue Catering Sponsorship Total Income Expenditure Cost of sales Salary CPF Skill Development Levy Capital expenditure Rent Utilities Telecommunication Maintenance & Upkeep Downpayment Advertising & Promotion Miscellaneous Total Expenditure Cash Surplus (Deficit) Cash brought forward Cash carried forward M8 M9 M10 M11 M12 Total $48,000 $53,280 $43,200 $144,480 $48,000 $53,280 $43,200 $144,480 $48,000 $53,280 $43,200 $144,480 $48,000 $53,280 $43,200 $144,480 $48,000 $53,280 $43,200 $144,480 $48,000 $53,280 $43,200 $144,480 $288,000 $319,680 $259,200 $866,880

$71,328 $50,000 $5,945 $125 $7,864 $3,622 $4,800 $450 $3,500 $0 $4,000 $2,000 $153,634 ($9,154) $54,852 $45,697

$71,328 $50,000 $5,945 $125 $7,864 $3,622 $4,800 $450 $3,500 $0

$2,000 $149,634
($5,154) $45,697 $40,543

$71,328 $50,000 $5,945 $125 $7,864 $3,622 $4,800 $450 $3,500 $0 $2,000 $2,000 $151,634 ($7,154) $40,543 $33,389

$71,328 $50,000 $5,945 $125 $7,864 $3,622 $4,800 $450 $3,500 $0

$2,000 $149,634
($5,154) $33,389 $28,235

$71,328 $50,000 $5,945 $125 $7,864 $3,622 $4,800 $450 $3,500 $0 $4,000 $2,000 $153,634 ($9,154) $28,235 $19,080

$71,328 $50,000 $5,945 $125 $7,864 $3,622 $4,800 $450 $3,500 $0

$2,000 $149,634
($5,154) $19,080 $13,926

$427,968 $300,000 $35,670 $750 $47,186 $21,732 $28,800 $2,700 $21,000 $0 $10,000 $12,000 $907,806 ($40,926)

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Common Mistakes in Business Plan


Some of the common mistakes business owners make when completing their business plans : Mistake 1: Incomplete financials This is perhaps the most important section of any business plan. Lenders want to know when they will have their loans repaid and assess the risk. You need to produce financial statements that accountants will endorse without question.

Mistake 2: Over ambitious projections Everyone thinks their business will grow exponentially in the first 12 months but in reality this is rarely the case. Your business plan must show a realistic path to profitability that proves your actual revenues and profits are comparable with your written plan.

Mistake 3: Leaving something out Every business plan follows a certain structure. Lenders and professional readers generally look for 3 or 4 aspects of your plan. You need to ensure you have these elements correctly written in the right area of your business plan.
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Common Mistakes in Business Plan


Here are some of the common mistakes business owners make when completing their business plans : Mistake 4: Incorrect format Your readers do not expect a 100 page novel nor a 1 page overview. Getting this fundamental area wrong will show your readers just how inexperienced you are.

Mistake 5: Poor understanding of marketing Communicating your products to your prospects is a critical success factor for every business owner. You need to show you understand your target customers, what their needs are, why they will buy from you and how you will communicate with them.

Mistake 6: An inability to sell your plan Having an accountant prepare your plan may save you a headache, but it is you who needs to explain to your lender or investors every question they have about your plan. You need to understand everything that is written in your plan.

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Approach to Strategic Planning

Presentation
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APPROACH
DIAGNOSTIC
Internal Assessment

TO STRATEGIC

PLANNING
STRATEGIC ALIGNMENT

STRATEGY FORMULATION

Pre-assessment Workshop

SWOT Report

Mission & Objective Setting

Strategy Workshop

Action Planning

Process Re-alignment

Top Management Stakeholders

Middle Management Staff Suppliers Customers

Top Management Middle Management


Companys Mission Core Competence Critical Success Factor

Top Management Middle Management Stakeholders

Middle Management

Middle Management

Project Expectations

Customer Surveys Climate Surveys SWOT Report

Strategic Option Action Plans

Process Re-alignment
Sales & Marketing Procurement & Warehousing Human Resources Financial Management Information

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External Assessment

Participants Deliverables

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APPROACH

TO STRATEGIC

PLANNING

Mission Objectives

Why and What Statement

Strategy

How to Statement
Action Plan
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APPROACH

TO STRATEGIC

PLANNING

The Business Assessment


Internal Functional aspects: Sales/Marketing Production Inventory Delivery Finance Human Resource Business Processes Infrastructures Corporate Structure Organisation Structure Systems External Customers current, future needs and expectations how they perceive your services? how they compare you with your competitors? Competitors what areas and why do they do better than you? what is their industry outlook? how do they see current, future customer needs and expectations? Industry Prospects Analyse: Weakness/Bottlenecks Market Threats Critical Success Factors Strengths Market Opportunities Core Competence

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APPROACH
SWOT Analysis

TO STRATEGIC

PLANNING

Core Competence Strategy Options

Critical Success Factors

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APPROACH

TO STRATEGIC

PLANNING

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Employee Ownership

Human Resource

APPROACH

Manufacturing

Financial & Accounting

Mission

Objectives Strategy

Strategic Alignment
Purchasing Warehousing & Logistics Management Information

TO STRATEGIC

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PLANNING

Management Commitment

APPROACH

TO STRATEGIC

PLANNING

School Holiday

Mission

= to have a good holiday time

Objective

= to go to Desasu

Strategy

= to drive to Desaru People Logistics Money

Strategic Alignment

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Action planning
Action Planning Date:

Goals

Prepared By :

Action Plan Main task Sub-task

2008
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

By Whom

Remark

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Chrisben Axis of Strategic Directions


Value Demographic

Industry

Application

Geographical Customer
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EXAMPLE

OF STRATEGIC

PLANNING

Corporate Vision
To establish overseas presence in 4 countries by 2010 Vietnam Thailand To achieve national business recognition award by 2010; Indonesia To publicly list the company by 2012 Brunei

To be South East Asias foremost distributor of quality bolts and nuts.


T o have four additional strategic outlets In Malaysia by 2010 Sabah Sarawak Penang Johor

To have a fully automated logistic hub by 2010. To attain ISO 9000:2000 certification by year 2008.

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Example of Strategic Planning


Strategic Overview
Value R&D Europe Manufacturing Middle East Value adding Global Sales Points

Diversification Industry East Malaysia

Engineering

Consultation
Application

Supply Chain Management Trading Customer


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S.E.A Regional Sales Points

Example of Strategic Planning


Market Coverage

ASEAN FTA 0% Duty & Tax by 2010

To set up sales office In Penang, Johor & East Malaysia To attain ISO 9000:2000 certification

To establish sales Presences in Vietnam, Thailand Brunei & Indonesia

Integrated logistic hub commence Operations, Sales points commence business in 4 countries, Additional 4 outlets in Malaysia, Total of 13 outlets to provide wider market coverage

To construct new Integrated logistic hub Increase stock capacity Reduce order lead time

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

Q3 2009

Q4 2009

2010

Year

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Example of ACTION PLAN


Action Planning 200X Team Johor Date: 7th July

Goals

Increase sales revenue by 10%

Prepared By :

Steven

Action Plan Main task A. Widen product range Sub-task 1. 2. 3. 4. 5. 6. Source one new product - Torx screw Find suppliers Requisition for sample Product training for staff Market new product Review of sales result Jul X X Aug

2007 Sep Oct Nov Dec By Whom Team Michael Steven Team Michael Micheal / CG Remark

X X X X X X X

Steven to liaise with supplier

B. Increase no. of customers (Target 20 new customers)

1. 2. 3. 4. 5.

Target new sales area - Pasir Gudang List potential customers and contacts Train sales staff Make sales calls and visit Review of sales performance

X X X X X X X X X X X

Micheal / Cheah Steven Micheal / Cheah Team Cheah

One new custumer visit per week

C.Sales promotion of old stock

1.List of old stock 2. Review pricing of old stock 3. Approval for sales of old stock 4. List target customers for old stock 5. Contact target customers and sell 6. Review of sales performance

X X X X X

X X

X X

Steven Micheal / Cheah Mr. Lee / CG Steven Team Micheal / Cheah

Non moving stock over 2 years old

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NetFoodasia

Case Study #4
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Interaction: I as the Business


Raise S$280,000 to develop a Internet B2B Food Portal business
Scenario:
Christopher Benjamin Consultancy Services

Four friends got together in 1998 to develop a portal to assist restaurateurs / chef with their purchasing operation.
One of the founder, a chef by professional realize that he needs to prepare and sent out purchase orders every night to his suppliers, a process that take more than an hour per night. There is need to simplified this process hence Netfoodasia was born.

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Our E-Portal Proposal


Viewers Food and Beverage industries members of the public governmental bodies suppliers (equipment / service providers) students (current / potential) Association (local / oversea) Criteria for Phase 2 Revenue generating Dynamic High eyeballs Platform for the F & B industries

Phase 1 Informational
Information Job Opportunities Student Placement Events / Activities Forum Search News New Development Criteria for Phase 1 on-time information attractive appearance interactive nature interesting/relevant content fast access

Phase 2 Transactional
Advertising
Banners

Consultancy / Brokerage / Data Mining

Fee

Revenue Model

Payment

e-Shop

Subscription

Membership Christopher Benjamin Consultancy Services 70

Guan Xi and Networking

Discussion

Guan Xi

Discussion

Guan Xi

Affiliation / Clans Colleges

network

Interest Groups

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Guan Xi

3-4 hours uninterrupted activities

Undivided attention

Preferably enjoyable

Successful Networking
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Maintenance of the Guan Xi


A relationship is based on three critical foundation Shared Values Mutual trust Support Financial, Physical, Emotional

Values

Trust

Values

Trust

Support
A good relationship is like an equilateral triangle

Support
But sometime the relationship is like an isosceles triangle

Maintenance of the Guan Xi

Values

Trust

When the triangle is broken Closing the triangle will require time and events

Support

Closing = (time ; event)

Maintenance of the Guan Xi Useful Tips


1. Maintain contacts
a. Phone call I saw you at.
b. Email Can I have your autograph. c. SMS Birthday Greetings

2. Maintain professionalism
a. Never bad mouth anyone b. Watch what you said to anyone, the world is a small place. c. Never talk in a lift, you never know who is listening d. Said what is good, may not be right

Maintenance of the Guan Xi Useful Tips


3. Maintain records
a. Get personal details Where last met, What was spoken, Number of

children etc b. Update your Database regularly

4. Maintain status
a. Never be out of your circle of contacts and lost you b. Constantly work on widening your contacts and find new Guan Xi

(relationship)

Business Entertainment

Discussion

Business Entertainment
Objective What you want to get out of it? Whats the budget?

Who you are entertaining? Status - Theirs and Yours Type of Industry With or without family

Time allocated Day or Night

Duration

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Business Entertainment
Time of the Day
Daytime Golf Yachting / Fishing Johor Singapore Southern Islands S$40 per game S$100 per game Half day - $800 for a 30 footer Luxury 100 footer about $10,000 including meal $200 per person per session

Location

Cost

Spa Night Dinner Casual Fine After Dinner Clubbing Massage Parlour Karaoke

Hotel and Clubs

Seafood restaurant Les Mis

$25 to $40 per person excl Liqueur From $80 onwards

St James / Mohammad Sultan / Clarke Quay Clean & Special High Class to Geyland Area

$30 - $200 per person per night out Foot reflexology $40 per hour Full Body $60 - $100per one hour Hourly Rate - $50 to $300 per sitting Butterfly - $20- $50 Liqueur - $300 to $800 per bottles Time Booking - $200 to $300 From $50 to $2000 excluding rooms

Chickens and Ducks

Call Girls and Pickups

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The Coffee Stall Business

Interaction

The Coffee Stall Business


Coffee / Tea Soft Drinks Fruit Juice Sugarcane Beer Cigarettes Tit bits Cut fruits Sandwiches Popiah Rojak

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The Coffee Stall Business


product

policy

Profit?

process

people

Ignore other considerations like Environment / Legislature/ Suppliers / Customers.


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Background Reading

Confidence by Rosabeth Moss Kanter Enterprise & Small Business by Michael Schaper & Thierry Volery

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Assignment I the Investor - Part 1

Part 1 Submission 1 A4 sheet Invest or Not? Why did you invest?

Do not open the newspaper prior to submission


Submit hard copy and soft copy to Administrator Session 6 Thursday Midnight latest Late submission will not be entertained
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Questions & Answers

My email address: chrisben@singnet.com.sg