BUSINESS PLAN OUTLINE

COVER PAGE

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 FACULTY OF BUSINESS MANAGEMENT

DIPLOMA IN ACCOUNTANCY (AC110)

AC1105A

FUNDAMENTALS OF ENTREPRENUERSHIP

ENT 300

BUSINESS NAME

PRODUCT NAME

PREPARED FOR:

PN IMA SHANAZ BINTI WAHIDIN

PREPARED BY:

Ali bin Ahmad 2010456789

Bakar bin Abu 2010123456
Kamal bin Johari 2010456789

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LETTER OF SUBMISSION

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 LETTER OF SUBMISSION

Diploma in Accountancy (AC110)

Faculty of Accountancy
Universiti Teknologi MARA Perak
Tapah Campus
35400 Tapah Road
Perak

21st February 2018

Puan
Lecturer of Fundamentals of Entreprenuership (ENT300)
Faculty of Business Management
Universiti Teknologi MARA Perak
32610 Seri Iskandar
Perak

Madam,

Submission of the Business Plan (ENT 300)

Attach is the business plan title “XYZ ENTERPRISE – DIGITAL CALCULATOR” to

fulfill the requirements as needed as university requirements.

Below is the list of the group members that involved in completing this business plan:

ABC 2010
DEF 2010
GHI 2010
XBM 2010
GST 2010

Thank you,

Yours sincerely

………………………
ABC
General Manager

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ACKNOWLEDGEMENT

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ACKNOWLEDGEMENT

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TABLE OF CONTENTS

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 TABLE OF CONTENTS

LETTER OF SUBMISSION

ACKNOWLEDGEMENT

EXECUTIVE SUMMARY

TABLE OF CONTENTS

1 INTRODUCTION
1.1 Name of Business
1.2 Nature of Business
1.3 Industry Profile
1.4 Location of the Business
1.5 Date of Business Commencement
1.6 Factors in Selecting the Proposed Business
1.7 Future Prospects of the Business

2 PURPOSE
2.1
2.2

3 BUSINESS BACKGROUND
3.1
3.2
3.3

4 BACKGROUND OF PARTNERSHIPS
5 LOCATION OF BUSINESS
6 MARKETING PLAN
7 OPERATIONAL PLAN
8 ADMINSTRATION PLAN
9 FINANCIAL PLAN

APPENDICES

PARTNERSHIP AGREEMENT

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EXECUTIVE SUMMARY

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EXECUTIVE SUMMARY

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INTRODUCTION

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1. Introduction (Arial 12, BOLD)

1.1. Name of the Business

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

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PURPOSE

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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

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BUSINESS BACKGROUND

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3. Business Background (Arial 12, BOLD)

Table 3.1 Business Background

Name of the Business

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 Logo and Motto

3.3.1 Logo

Logo description

3.3.2 Motto

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PARTNERSHIPS BACKGROUND

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4. Background of Partnership (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

4.2 Administration 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

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LOCATION OF THE BUSINESS

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5. Location of Business (Arial 12, BOLD)

5.1. Physical location of the project

(Map of business’s 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)

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MARKETING PLAN

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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 Description
Featuress 

Materials 
Benefits 


Table 6.2.2 Product ilustration

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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 Market Segmentation with explanation (in a table)

6.4 Market size (Arial 12, BOLD)

6.4.1 Population table

Table 6.4.1.1 Georgetown, Penang (example)

Target market Total Target Price/unit Total

population customers (RM)
 Workers
 Shopping Mall 5 18 210.00 18,900.00
 Mini Market
 Wholesaler
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 Strengths Weaknesses

Competitor1  3 strengths  3 weaknesses
Competitor2
Competitor3

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 Others

6.5.1 Ranking of the competitors

Table 6.5.2 Ranking of the competitors

Rank No Competitors
1 Competitor1
2 Competitor2
3 Competitor3
4 Others

6.6 Market Share (Arial 12, BOLD)

6.6.1 Market share before the entry of your business.

Table 6.6.1 Market share before the entry of your business

Competitor Before entrance Amount

(%) (RM)
Competitor1
Competitor2
Competitor3
Others
TOTAL 100 803,040.00

6.6.1 Adjusted market share after the entry of your business.

Table 6.6.2 Market share after the entry of your business

Competitor After entrance Amount Percentage of

(%) (RM) loss (%)
Competitor1 Differentiation
before and loss
Competitor2 Differentiation
before and loss
Competitor3 Differentiation
before and loss
Others Differentiation
before and loss
Your business 5 – 10 % 80,304.00 -
TOTAL 100 803,040.00

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 6.7 Sales forecast (Arial 12, BOLD)

Table 6.7 Sales Forecasting

Month Sales Forecast

1 80,304.00
-
12
Year 1 Total Month 1 – Month 12
Year 2 Increment of 10% from Year 1
Year 3 Increment of 15% from Year 2

6.8 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 Marketing Budget (Arial 12, BOLD)

Table 6.9 Marketing Budget

Item Fixed Assets Monthly Other

Expenses Expenses
(RM) (RM)

Fixed Asset

Working capital

Other Expenses

TOTAL

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OPERATIONAL PLAN

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7 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

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 7.4.3 Number of units per hour

Such as daily working hour = 8 hours

= No. of output per day / daily working hours

7.5 Material Planning

7.5.1 Material Requirement Planning

7.5.1.1 Raw Material Required per Month (Bill of Material)

No Material Quantity Safety Total Price/Unit Total

(kg) Stock Material (RM) Price
Requirement (RM)
1 Sugar 500 5% of Quantity + 2.00 2.00 X
quantity Safety Stock total
material
required
(example) 500 50 550 2.00 1,100

7.5.2 Identify supplier

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

7.6 Machine and Equipment Planning

7.6.1 List of machine & equipment

Machine No of machine
Welding machine
Cutter machine
Polish machine

7.6.2 List of machine supplier

Machine Supplier
Machine A XXX Company + Address
Machine B

7.6.3 Machine and Equipment (rental or purchase)

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 Item Quantity Price/unit Total Cost
(RM) Monthly
(RM)
Type of machine
(Mixer, drying, steam,
packaging)
TOTAL

7.7 Manpower 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 List of Operation Personnel

Position No of personel

7.7.3 Schedule of task and responsibilities

Position Task and Responsibilities



7.7.4 Schedule of remuneration

Position No . Monthly EPF SOCSO Amount

Salary (RM) Contribution ( 1.75% )
(13%)
(RM) (RM) ( RM )
Operation manager 1 4400 572 4972
Labotary supervisor 1 2500 325 50 2875
Labotary 3 1200 156 24 4140
technologist
Operator 3 1200 156 24 4140
TOTAL 16127

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7.8 Overhead requirement

7.8.1 Operations Overhead (indirect labour/indirect

material/insurance/maintenance and utilities)

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
6 Box for transportation 300
7 Machine maintenance 750
8 Cleaner 200
TOTAL

7.9 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 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)

Working days = 6 days per week ( Monday – Saturday)

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7.13 License, permits and regulations required (Refer text book and choose relevant

with your business)

7.13.1 Manufacturing license

7.13.2 Building license

7.13.3 Environement license

7.14 Operations Budget

Item Fixed Assets Monthly Other

Expenses Expenses
(RM) (RM)

Fixed Asset

Working Capital

Other Expenses

Pre-Operations

TOTAL

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ADMINISTRATION PLAN

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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





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 8.4 Schedule of Remuneration (Arial 12, BOLD)

Table 8.4 Schedule of Remuneration

Position Quantity Monthly EPF SOCSO Total

Salary (RM) (RM)
(RM) (13 %) (1.75 %)
(A) (B) (C) (A)+(B)+(C)

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

Table 8.5.1 List of Office Furnitures and Fittings

Type Quantity Price/Unit Total

(RM) (RM)

Table 8.5.2 List of Office Supplies

Type Quantity Price/Unit Total

(RM) (RM)

8.6 Administration Budget (Arial 12, BOLD)

Table 8.6 Administration Budget

Item Fixed Assets Monthly Other

Expenses Expenses
(RM) (RM)

Fixed Asset

Working capital

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Other Expenses

TOTAL

FINANCIAL PLAN

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9 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)

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 9.8.3.2 Net Profit Margin

(table and graph)

9.8.3.3 Return on Assets

(table and graph)

9.8.3.4 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)

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CONCLUSION

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CONCLUSION

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APPENDICES

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PARTNERSHIP AGREEMENT

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