BUSINESS PLAN OUTLINE

COVER 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

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
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

3.1.1 Vision
3.1.2 Mission

3.2

Organizational Chart
(GM + Head of Department)

3.3

Logo and Motto

3.3.1 Logo
3.3.2 Motto

SHAREHOLDERS BACKGROUND

4. Background of Shareholders (Arial 12, BOLD)

4.1 General Manager
Table 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
4.2Administration Manager
Table 4.2 Background of Administration Manager
4.3 Marketing Manager
Table 4.3 Background of Marketing Manager
4.4 Operation Manager
Table 4.4 Background of Operation Manager
4.5 Financial Manager
Table 4.5 Background of Financial Manager

LOCATION OF THE BUSINESS

5. 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)

6.1 Marketing Objectives
(i) New business
(ii) Existing business
*Please refer slides for elaboration (Choose new business).

6.2 Description 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 description
Product
Features
Materials
Benefits

Description

Table 6.2.2 Product ilustration

6.3 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.
6.3.1 Geographic Segmentation with explanation (in a paragraph)
6.3.2 Demographic Segmentation with explanation (in a paragraph)
6.3.3 Psychographic 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 outlet
Retailer
Shopping
Mall

No of outlet
20
5

No of items to
needed (unit)
3
18

Price/unit
(RM)
210.00
210.00

Total
12,600.00
18,900.00

30

Mini
Market
Wholesaler
TOTAL

210.00

31,500

26

63,000

6.4.1.2 Population 2
Table 6.4.1.2 Population 2
Type of outlet

No of outlet

No of items to
needed (unit)

Price/unit
(RM)

Total

No 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 outlet

No of outlet

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 analysis

Competitors
Competitor1
Competitor2
Competitor3
Others

Strengths
3 strengths

Weaknesses
3 weaknesses

6.5.1

Ranking of the competitors

Table 6.5.2 Ranking of the competitors
Rank No
1
2
3
4

6.6

Competitors
Competitor1
Competitor2
Competitor3
Others

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 company

Competitor

Before entrance
(%)

Competitor1
Competitor2
Competitor3
Others
TOTAL

100

Amount
(RM)

803,040.00

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 company

Competitor

After entrance
(%)

Amount
(RM)

Competitor1
Competitor2
Competitor3
Others
Your company
TOTAL

5 10 %
100

80,304.00
803,040.00

Percentage of
loss (%)
Differentiation
before and loss
Differentiation
before and loss
Differentiation
before and loss
Differentiation
before and loss
-

Use pie charts for illustration

6.7

Sales forecast (Arial 12, BOLD)

Table 6.7 Sales Forecasting

Month
1
12
Year 1
Year 2
Year 3
6.8

Sales Forecast
80,304.00
Total Month 1 Month 12
Increment of 10% from Year 1
Increment of 15% from Year 2

Market strategy (marketing mix) (Arial 12, BOLD)

6.8.1 Product - detail about the product
6.8.2 Price
6.8.3 Place
6.8.4 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 Personnel

Position

No of Personnel

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

Table 6.11 Task and Responsibilities of Marketing Personnel : Head +
workers
Position

Task and Responsibilities

6.12 Schedule of Remuneration (Arial 12, BOLD)

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

workers
Position

Qty

Monthly
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 Budget
Item

Fixed Asset
Working capital
Other Expenses

TOTAL

Fixed Assets

Monthly
Expenses
(RM)

Other
Expenses
(RM)

OPERATIONAL PLAN

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 Layout
7.3.1 Layout based on the product
7.4 Production Planning
7.4.1 Sales forecast per month
Output per month
Average 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 unit
7.4.2

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 month
7.4.3 Number of units per hour
Such as daily working hour = 8 hours
= No. of output per day / daily working hours

7.5Material Planning
7.5.1 Material Requirement Planning
7.5.1.1 Raw Material Required per Month (Bill of Material)
No

Material

Quantity
(kg)

Safety
Stock

Sugar

500

(example)

500

7.5.2

Price/Unit
(RM)

5% of
quantity

Total
Material
Requirement
Quantity +
Safety Stock

50

550

2.00

Identify supplier

Material
Sugar

Material
Malayan Sugar Mfg. Co. Berhad

2.00

Total
Price
(RM)
2.00 X
total
material
required
1,100

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 day
Example :

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 & equipment

Machine
Welding machine
Cutter machine
Polish machine

7.6.3

No of machine

List of machine supplier

Machine
Machine A
Machine B
7.6.4

Supplier
XXX Company + Address

Machine and Equipment (rental or purchase)

Item

Quantity

Price/unit
(RM)

Total Cost
Monthly
(RM)

Type of machine
(Mixer, drying, steam,
packaging)
TOTAL
7.7Manpower 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 day

Example :

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 Personnel

Position
Laboratory operator
Operator
Cutter operator
Quality checker

No of personel

)
7.7.3

Schedule of task and responsibilities

Position

Task and Responsibilities

7.7.4

Schedule of remuneration

Position

No .

Monthly
Salary (RM)

Operation manager
Labotary supervisor
Labotary
technologist
Operator

1
1
3

4400
2500
1200

1200
TOTAL

EPF
Contribution
(13%)
(RM)
572
325
156

SOCSO
( 1.75% )

Amount

(RM)

( RM )
4972
2875
4140

156

24

50
24

4140
16127

7.8

Overhead requirement
7.8.1 Operations Overhead (indirect labour/indirect
material/insurance/maintenance and utilities)
No
1
2
3
4
5
6
7
8

7.9

Types of Overhead
Electricity
Water
Rental
Telephone
Internet
Box for transportation
Machine maintenance
Cleaner
TOTAL

Monthly
Cost (RM)
8,000
2,000
17,000
400
500
300
750
200

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 office

7.13 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
7.14.2
7.14.3

Manufacturing license
Building license
Environement license

7.15 Operations Budget

Item

Fixed Asset
Working Capital
Other Expenses
Pre-Operations

TOTAL

Fixed Assets

Monthly
Expenses
(RM)

Other
Expenses
(RM)

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)

Position

No 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)

Position

Task and Responsibilities

8.4 Schedule of Remuneration (Arial 12, BOLD)

Table 8.4 Schedule of Remuneration
Position

8.5

Quantity

Monthly
Salary
(RM)
(A)

EPF
(RM)
(13 %)
(B)

SOCSO
(RM)
(1.75 %)
(C)

Total
(A)+(B)+(C)

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

Table 8.5.1 List of Office Furnitures and Fittings
Type

Quantity

Price/Unit
(RM)

Total
(RM)

Quantity

Price/Unit
(RM)

Total
(RM)

Monthly
Expenses

Other
Expenses

Table 8.5.2 List of Office Supplies

Type

8.6

Administration Budget (Arial 12, BOLD)

Table 8.6 Administration Budget
Item

Fixed Assets

(RM)
Fixed Asset
Working capital
Other Expenses

TOTAL

(RM)

FINANCIAL PLAN

Financial Plan (Arial 12, BOLD)

9.1
Operating Budget
9.1.1 Administrative Department
9.1.2 Marketing Department
9.1.3 Operations Department
9.2
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 Ratios
9.8.2.1 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
9.8.3.3
9.8.3.4

Net Profit Margin

(table and graph)
Return on Assets
(table and graph)
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