CHAPTER

04
SMALL BUSINESS
MANAGEMENT AND
PLANNING

BY: MISS AISHAH BT ABDUL GHAPAR

AKA MISS GOJES
 THE OVERVIEW OF BUSINESS PLAN
AND GUIDELINE

The overview of Business Plan

A viable Business Plan is important in creating the opportunity of an entrepreneur’s
success. It set the business mission and determine the right ways of managing
business. The entrepreneurs could determine the company’s main competitors,
barriers, and company’s performance through a business plan. A good business plan
should be simple and specific yet can be measurable and achievable. It should be
realistic and relevant.
Definition of Business Plan
A business plan is a written document prepared by a person or an entrepreneur that
describes all the relevant external and internal elements involved in starting a new
venture

BY: MISS AISHAH BT ABDUL GHAPAR

AKA MISS GOJES
Business Plan (BP) also known as

Venture plan Entrepreneur’s plan

Prospective Working/ Project paper

BY: MISS AISHAH BT ABDUL GHAPAR

AKA MISS GOJES
 PURPOSE OF BP
1. As guidelines to the management of the company to implement business
activities planned and achieve goals set

2. As a tool to assess stiffness for company to always maintain competitive and

sustainable growth

3. As a tool to receive financial support or sources of outside capital (investor) for

business start or growth

BY: MISS AISHAH BT ABDUL GHAPAR

AKA MISS GOJES
 Business Plan Preparation Guidelines

Know
competit
Know or
organizati strength
Realistic on
and and
Info strength wekness
objective and
should
Avoid the based on weakness
use of previous
Reveal jargon
the study
Be language
people
flexible involved
Keep the
BP short and their
and roles
precise

BY: MISS AISHAH BT ABDUL GHAPAR

AKA MISS GOJES
 Standard Format of BP

Executive Summary Marketing Plan Operational/Production Plan

Organizational Plan/
Table of Content Financial Plan
Administrative Plan

Background of Project Implementation

Introduction
Owner/Partners/Directors Schedule

Purpose of Preparing A Business/ Company Conclusion/

Business Plan Background Recommendation

BY: MISS AISHAH BT ABDUL GHAPAR

AKA MISS GOJES
 Executive Summary
Executive Summary/Abstract (make sure
all points as follows included in the essay)

Objective of the company

Products or services being offered

Market potential

Project management

Project cost

Expected returns
BY: MISS AISHAH BT ABDUL GHAPAR
AKA MISS GOJES
 Table of Content
Table of Contents (make sure all main topic and
sub topic written)

1.0 Introduction

2.0 Purpose Of Preparing Business Plan

3.0 Company’s Background

4.0 Owners/ Partners/ Directors Background

5.0 Background Of The Proposed Project

6.0 Organization Plan

7.0 Marketing Plan

8.0 Operational Plan

9.0 Financial Plan

10.0 Summary / Conclusion

BY: MISS AISHAH BT ABDUL GHAPAR

11.0 Appendices AKA MISS GOJES
 Introduction

1.1 Name of the 1.2 Nature of

1.3 Industry profile
company business

1.5 Date of
commencement 1.6 Factors in
1.4 Location of
(the date of selecting the
business
business starts its proposed venture
operations)

1.7 Future prospects

of the business

BY: MISS AISHAH BT ABDUL GHAPAR

AKA MISS GOJES
Purpose of Preparing A Business Plan

2.1 To view and evaluate the proposed

business venture in an objective, critical and
practical manner

2.2 To obtain financial assistance/loan

2.3 To allocate business resources effectively

BY: MISS AISHAH BT ABDUL GHAPAR

AKA MISS GOJES
 Business/ Company Background
3.3
3.1 Name of the 3.2 Business Correspondence 3.4 Telephone
business address address (same number
address a above)

3.8 Main
3.6 E-mail 3.7 Form of
3.5 Fax number business
address business
activities

3.9 Date of
commencement 3.10 Date of 3.11 Registration 3.12 Equity
(business start its registration number contribution
operations)

3.13 Name of 3.14 Bank

bank account number

BY: MISS AISHAH BT ABDUL GHAPAR

AKA MISS GOJES
 Background of Owner/Partners/Directors

Name Date of birth Age

Present ● Chief Of Director /Manager

Identity card occupation (your ● Administration Manager
number
Telephone no Marital status
position in your ● Marketing Manager
company)
● Operation Manager
● Finance Manager

Permanent
Academic
address of the E-mail address Experience
qualifications
company

Course attended
Correspondence Skills (relate with
Website address (relate with your
address your position)
position)

BY: MISS AISHAH BT ABDUL GHAPAR

AKA MISS GOJES
 Organizational Plan/ Administrative Plan

Organization info Organization Manpower planning Schedule of tasks and Remuneration plan List of office Administrative budget
• Logo chart/structure (according to your responsibilities • Position equipment and • Fixed Assets/Capital
partners) (details) supplies Expenditure
• Mission • Number of people
• Vision • Position • Task/position • Salary • Type of Equipment • Working
• Objectives • Number of person • Responsibilities/job • EPF • Quantity Capital/Monthly
• Price per unit (RM) Expenditure
• SOCSO
• Other Expenditures
• Contingency
allowance/cost

BY: MISS AISHAH BT ABDUL GHAPAR

AKA MISS GOJES
 Process of Management

PLANNING

RESOURCES ORGANIZATIONAL GOALS

CONTROLLING ORGANIZING

INPUT LEADING OUTPUT

 Type of organizational structure
Managing Director

Manager Manager
FINANCE MARKETING

Manager Manager
ADMIN OPERATION
 Marketing Plan
• Description • Target • Market • 3 companies • Market • Sales • Product • Fixed

Competitors (strengths and weaknesses)

Marketing budget
Marketing strategy
of products/ market and size -competitors share forecast Strategy Assets/Capital
services market • Strengths • Pricing Expenditure
segmentation • Weaknesses Strategy • Working
• Distributio Capital/Month
n Strategy ly Expenditure
• Promotion • Other
Strategy Expenditures

BY: MISS AISHAH BT ABDUL GHAPAR

AKA MISS GOJES
❑ It is an important concept of marketing
management.
❑ Main aim of every business organization is to earn
and maximize its profits.
❑ Four factors/ Four Ps of marketing mix:
▪ Product
▪ Place
▪ Promotion
▪ Price
BY: MISS AISHAH BT ABDUL GHAPAR
AKA MISS GOJES
 Product: the features and
Price: the amount customers
appearance of goods and
pay for a product
services

Marketing Mix

Place: the point where

Promotion: how customers
products are made available
are informed about products
to customers

BY: MISS AISHAH BT ABDUL GHAPAR

AKA MISS GOJES
 Marketing Mix 4Ps
Product Price Place Promotion
Variety List Price Channels Advertising
Quality Discounts Coverage Personal Selling
Design Allowances Locations Sales Promotion
Features Payment Period Inventory Public Relations
Brand Name Credit terms Transportation Direct Marketing
Packaging Logistics
Services Assortments

BY: MISS AISHAH BT ABDUL GHAPAR

AKA MISS GOJES
BY: MISS AISHAH BT ABDUL GHAPAR
AKA MISS GOJES
 ❑ Forces that shape opportunities/threats to company:
Demographic: Economic:
Factors that affect
consumer buying power
and patterns (income,
inflation, recession, interest
rate, exchange rate)
Monitors population in
terms of age, sex, race,
occupation, location, and
other statistics.
Key economic concerns for
marketers: (Economic
development, Changes in
income, Changes in
consumer spending
patterns)
Technological: Political: Cultural:
Forces that create new
products and market
opportunities
Laws, agencies, and groups Forces that affect a society’s
that influence or limit basic values, perceptions,
marketing actions. preferences, and behaviors.
Forces that create new
products and market
opportunities.
Key trends in the political
Views that express values:
environment: (Increased
Issues in the technological (Of oneself, Of others, Of
legislation, Changing
environment: (Rapid pace of organizations, Of society, Of
enforcement, Greater
change, High research and nature, Of the universe)
concern for ethics)
development (R & D)
budgets, Focus on minor
improvements, Increased
regulation)
BY: MISS AISHAH BT ABDUL GHAPAR
AKA MISS GOJES
 Operational/Production Plan
Operational • Describe who, what, where, when involved day-to-day
process tasks and activities of the business
Process flow chart • Symbols & Description
Production
schedule/capacity • Time of Production & Quantity of Production
planning
Machine and • Particulars, Quantity, Supplier, Price per unit, Total
equipment Amount
Operation layout • Physical arrangement of all resources that consume
plan space within a facility
Location of
• Provide map with level
operation
• Fixed Assets/Capital Expenditure
Operational
• Working Capital/Monthly Expenditure
budget
• Other Expenditures
BY: MISS AISHAH BT ABDUL GHAPAR
AKA MISS GOJES
 Financial Plan
Project implementation cost schedule
• Administration Budget
• Marketing Budget
• Operations Budget
Sources of finance
Fixed assets depreciation tables
Loan Amortization Schedule
Hire purchase (if relevant)
Pro forma cash flow statement
Pro forma income statement
Pro forma balance sheet statement
BY: MISS AISHAH BT ABDUL GHAPAR
AKA MISS GOJES
 Elements of Accounting
Asset Liability Expense Revenue Owner’s
Equity

▪ Somethin ▪ Somethin ▪ Any ▪ Any ▪ Residual

g we own g we owe decrease increase in interest in
or use that because of in equity equity the assets of
should something resulting resulting the entity
generate we did from from after
income. and we are decreases increases deducting
going to in assets or in assets or all its
have to increases decreases liabilities.
pay. in in • Increased by
liabilities. liabilities. revenue and
capital
contribution
s.
• Decreased
by expenses
and
drawings/
dividends

BY: MISS AISHAH BT ABDUL GHAPAR

AKA MISS GOJES
Cash Flow from Operating Activities:
Cash Inflow Cash Outflow

Payments to suppliers
Revenue from sale of goods
and services Payments to employees

Interest from securities Payments for taxes

Dividends from other Payments to lenders

companies
Payments for other expenses
Cash Flow from Investing Activities:
Cash Inflow Cash Outflow

Sales of plant, property, and

Purchase of plant, property,
equipment
and equipment
Sale of debt or equity
Purchase of debt or equity
Collection of the principle on
Lending to others
loans
Cash Flow from Financing Activities:

Cash Inflow Cash Outflow

Payment of dividends
Sale of securities
Redemption of long-term debt
Issue debt instruments
Redemption of capital stock
 Conclusion/ Recommendation

Your conclusion should; acknowledge the opportunity,

highlight the key strengths of your plan, summarise your
vision, and remind the reader why your business is in a
position to successfully execute the plan. If you are looking to
raise funding with your plan, you should detail the finance
required.

BY: MISS AISHAH BT ABDUL GHAPAR

AKA MISS GOJES
Appendices
Questionnaires used to collect data as part of
marketing research

Resumes of the key management team

Price list of competitors

Promotional brochures or advertisement

Copy of identity card

The permit, licence, letter of authority of letter

of support from another agency.

BY: MISS AISHAH BT ABDUL GHAPAR

AKA MISS GOJES
 Human Resource Management For Small Business
(functions)

a. Human resource b. Job analysis c. Recruitment d. Training and

planning and selection development
Is a systematic -
All businesses process to identify It involves the Employees
require qualified tasks and process of development
personnel for determine skills searching, through training,
position in the and knowledge identifying and education, and
organization. required to perform selecting qualified experience
a job candidates for
positions in an
organization.
BY: MISS AISHAH BT ABDUL GHAPAR
AKA MISS GOJES
 SECOND
ASSESMENT

BY: MISS AISHAH BT ABDUL GHAPAR

AKA MISS GOJES