Topic 8

BUSINESS PLAN &

BUSINESS MODEL CANVAS
• Learning objectives:

– Explaining the importance of canvas business

and business plan
– Identify the key components of the business
plan and business canvas.
– Applying design and canvas business in
managing the business
– Explaining the value and strength found in a
business
– Explaining the deal value proposition of a
business in the context of real business
 Introduction
• Is the most important step before
entrepreneurs start a business
• RP can minimize the risk of failure
• Is a written document that provides
evidence of the business or project that will
be run as a whole, including the current
status, expected needs and desired
outcomes.
• The strategy used to two or three years in
the future
 Importance of RP
• Two main functions:

1) as a guideline for managing the

business to ensure a successful of a
business or company.

2) to raise capital for business financing

 Four (4) of BP Evaluator
1. Financial institution
2. Supplier
3. Customer
4. Investor
 Critical Factors in provision of the BP

• A good BP has a goal that is both realistic

and take into account the critical factors as
follows (SMART):
I. Specific-S
II. measurable-M
III. attainable-A
IV. realistic-R
V. timely-T
 Components of Business Plan
I. Introduction
II. Purpose
III. Executive summary
IV. Business background
V. Background of entrepreneurs and partners
VI. Organization plan
VII.Marketing plan
VIII.Operating plan
IX. The financial plan
X. Summary
XI. Appendix
 1 – Introduction
Contains the following sections:
I. Front page - the business name, the name of
the entrepreneur and the business address and
the date provided
II. The content - headlines by page
III. Introduction - A brief overview of the main
activities and specific business and information;
business type, name and location, date,
business will be / when operating and market
trends that justify a well-designed project.
 2 –Purpose of BP

• Whether applying for financing from

financial institutions
• Initially planned for implementation of new
projects
• As a guideline of doing business
• Assess the viability of the proposed
project
 3 – Executive Summary
• An overall summary of the businesses proposed by entrepreneurs
in 1-2 pages

• The main part of the BP – expository of the main elements to the

proposed business

• Includes information or business idea to be carried out, goods or

services, uniqueness, a summary of the characteristics of the
market, the introduction of the founder and the financial structure

• Normally the executive summary will become the last part of which
will be provided by the entrepreneur after everything in BP was
resolved
 4– Business Background
• Provide details such as:
1. Business address and mailing
2. Business forms - individual, partnership
or limited company (Sdn. Bhd)
3. Date and registration number
4. Initial capital
5. Bank - the name and bank account
 5- Background of Owner and
Partner(s)
I. Full name
II. Identification card number
III. Date of birth
IV. age
V. gender
VI. marital status
VII.Academic qualifications
VIII.Attended course
IX. Skill
X. experience
XI. Permanent address
XII.Current work
XIII.Phone number
XIV.Businesses that have ventured
 6 – Organization Plan
• Such information
– Address, sketches, plans that show the location of the
building and location of environmental conditions -
explains the shape of the building (shops, factories, in
shopping centres, etc.) form of rental, own property etc.
– Information offices requirement and the expenses
involved (fixed assets, monthly expenses, other
expenses)
– Organizational charts, job listings, number of employees
and job descriptions, wages, remuneration etc.
 7 – Marketing Plan
1. A study and Analysis
I. Identify your target market
II. Market size and market trends
III. competition
IV. Estimated market share

2. Marketing plan or marketing strategy (4Ps)

I. product Strategy
II. pricing
III. Promotion
IV. distribution
 8 – Operation Plan
• Explaining the steps in the process of production of goods,
livestock or services offered in the business.
– Sketch of the process flow chart
– Unit production or production budget in line with sales forecasts included in
the marketing plan
– Material requirements - the list of raw materials or merchandise required
– List of marketing positions and number of employees, job descriptions and
remuneration, salaries and remuneration
– Machinery and equipment needed
– The layout of the operating room
– The location of the office or factory or site operations - rental costs etc.
– Overhead operation - water, electricity, gas etc.
– Operating expenses - expenses on fixed assets, monthly expenses and
other expenses
 9- Financial Plan
• Include the following items:
1. The cost of the Project Implementation
2. Sources of Project Financing
3. Tables/schedules
– Repayment schedule
– Hire purchase repayment schedule
– Fixed assets depreciation schedule
4. Pro forma of Statements
– Cash Flow Statement
– Manufacturing /trade Statement
– Income Statement/Profit or Loss Statement
– Statement of Financial Position / Balance Sheet
5. Fixed Asset Investment – cash, hire purchase or
rental
6. Capital (short term) – for short term need of
organizations expenses, marketing and operations
7. Other expenses – deposit, registration fee, license,
etc
8. Perbelanjaan luar jangka /miscellanious –
additional expenditure, 5-10% from total cost
involved.
10- Summary
• Summing up all the planning - brief,
precise and compact
• Describe briefly about the viability of the
planned projects.

11- Appendix
• Attach relevant documents as a consolidation and
business justification
 BUSINESS CANVAS
• Known as the Business Model Canvas
(BMC) - a model and tools used in the
design of a project, business and company
• Help address the challenges of business
• More systematic and comprehensive
• It is a communication tool that is easily
understood by the entrepreneurs and
interested parties such as financial
institutions, investors, suppliers and
customers
Importance of Business Canvas
I. Measurement tools for entrepreneurs to create, deliver and produce
value proposition
II. can understand the main points of business main values delivered to
the customers
III. For easy reference on business activities through 9 elements
IV. more flexible
V. Can integrate the key elements for the purpose of latest business
planning
VI. Model is highly accurate
VII. For fast and easy decision-making process
VIII. It has been used by many large companies and is the best indicator
to measure the success of the business
 Elemen Kanvas Perniagaan

Jadual 8.1: Elemen Kanvas Perniagaan

 Business Canvas Elements
9 business canvas elements:

1. Customer segments
2. Cash Value - why buy, customer problem that can be solved
3. Channel
4. customer Relations
5. Income stream - and how to get money / income
6. The main source - the main sumbeer, can consist of physical
resources / material, intellectual, human and financial
7. The main activities - advertising, buying and selling process, money
transfers, etc.
8. Key partners - comprised of partners, suppliers, etc aims to optimize
operating costs and reduce risk
9. The cost structure
 Conclusion

• Business plan and business canvas is

essential for the business