Lec 7

• Business Plan


  A written document that outlines the detailed execution plan of the business. It will include details of the organization, administration and human resource plan, marketing plan, production plan and financial plan. The business plan should enable an entrepreneur to determine whether the project is viable, needs to be modified or whether the project is not feasible and should be abandoned altogether.
• Purposes of Preparing a Business Plan

  • It is used as a feasibility study to ascertain the viability of the project
  • It is a guide for project implementation
  • It is used as a document to justify and support loan application or to entice and convince a partner or investor to invest in the business
• Project Preliminary Screening


  • The viability, sustainability and growth potential of the business concept, model and strategy
  • Overcoming initial start up hurdle or chasm: The provision of adequate capital, skill manpower and the ability to achieve early break even sale volume
• Business Plan Format


  • Executive summary
  • Table of content
  • Introduction
  • Company background
  • Owner/partner background
  • Location
  • Organization, administration and human resource plan
  • Marketing plan
  • Operation plan
  • Financial plan
  • Conclusion
  • Appendices
• Organization, Administration and Human Resources Plan for Burger Kiosk


  • Manpower requirement and the organization structure for the company
  • Manpower planning also includes planning for their job qualifications, job specification, recruitment and their remunerations budget
• Marketing Plan for Burger Kiosk


  • What is your product and its special attraction or quality?
  • Who is your target market?
  • What is the market size?
  • Who are your competitors and what are their competitive strengths?
  • What is your market share and your sale forecast?
  • What are your marketing strategies?
  • What is your marketing budget and plan?
• Target Market Profile


  • College students
  • Factory workers
  • Local residents
  • Tourist and others
• The estimation of the total purchase of similar products in the locality including those purchased from your competitors. Let's say daily market size is as follows: College students 100@RM3.00 = RM300.00, Local residents 50@RM3.00 = RM150.00, Factory workers 30@RM3.00 = RM90.00, Tourist and others 20@RM3.00 = RM60.00, Total daily market size = RM600.00
• Let's say, your market share is 50 per cent, thus sale forecast is RM300.00 per day
• Let's say, you are going to promote your burger through pamphlet and roadside banner: Pamphlet—Printing and distribution RM200.00, Banner—Printing and permit RM200.00
• Operation Plan for Burger Kiosk


  • What products do you want to produce and what are its quality specifications and characteristics? Does this quality meet the target customers' needs and wants?
  • What is the cost of production per unit and what is the possible selling price the market can absorb?
  • How many do you need to produce per day/week / month so that you can cater for your sale forecast?
  • Based on quality and quantity required, what is the best production plan for the job; you will have to decide whether it is going to be fully mechanized, semi-mechanized or totally manual?
  • You will have to outline your material, machines, tools, space and lay out needs based on the production process flow chart.
• Let's say your operation is quite simple. Your material input cost per burger is only RM1.00 and your selling price per burger is RM3.00. Estimated sale per day RM300.00, Cost of raw material for one day RM140, therefore for 5 days (one week) RM700/week, Sale for five days/week RM300 ×5 days = RM1,500/week, Salary: RM20.00 /person for 2 persons, 5 working days/ week, RM20 × 2 persons × 5 days = RM200/week, Let's say your asset equipment cost is only RM1,500.00
• Financial Plan for Burger Kiosk


  • Project implementation cost
  • Sources of fund for the project
  • Financial schedule for asset depreciation and loan amortization
  • Cash flow projection
  • Income statement projection (profit and loss)
  • Balance sheet projection
• Example of loan amortization table for the proposed burger kiosk project: Let's say, the loan amount is RM1,000, duration 4 weeks, interest at RM10.00 per week.
• Social Entrepreneurship Project


  An alternative to the business plan project, where students can look into the internet to gain some ideas on the types or themes of the social entrepreneurship project that can be undertaken, such as helping the urban or rural poor, orphans, single mums, ex-drug addicts, HIV or cancer patients, environmental causes, animal protection or organizing to fight child labour, pollution, etc.