Faculty of Information Technology

Ts. Asma Zubaida Bt Mohamed Ibrahim

ICT Entrepreneurship
MIT 4203
January 2022
 ICT Entrepreneurship
MIT 4203

Chapter 4
ICT BUSINESS PLAN &
MODEL
BUSINESS PLAN
• AT THE END OF THIS Lecture, YOU WILL BE ABLE TO:
• Define what is a business plan.
• List the individuals who need a business plan.
• Explain the importance of a business plan to an entrepreneur.
• List the main sections of a business plan.
• Describe the format of a business plan.
• Discuss the guidelines in preparing a business plan.
• Explain the reasons for failure in a business plan.
 INTRODUCTION

• Business planning is one of the management

tools used to achieve business objectives.
• The accuracy of a business plan will reflect
management's ability, experience and history in
running the business.
BUSINESS PLAN
• The business plan is also known as venture plan,
entrepreneur plan, working paper, project paper or
prospectus.
• The plan serves as a guide and blueprint for a
proposed business project that one intends to
undertake.
 VARIOUS PARTIES WHO NEED A BUSINESS
PLAN

• A business plan is very important to various parties

for many reasons.
• Among those who need a Business Plan are...
INDIVIDUALS WHO NEED A BUSINESS PLAN
INDIVIDUALS WHO NEED A
BUSINESS PLAN
THE IMPORTANCE OF A BUSINESS PLAN
 THE CHARACTERISTICS OF A
GOOD BUSINESS PLAN

The business Finally, the financial

concept section

The marketplace section

 THE BUSINESS CONCEPT

• Where you discuss the industry, your business structure,

your particular product or service, and how you plan to
make your business a success.

BACK
 THE MARKETPLACE SECTION

• In which you describe and analyze potential customers: who

and where they are, what makes them buy and so on.
• Here, you also describe the competition and how you’ll
position yourself to beat it.

BACK
 THE FINANCIAL SECTION

• Contains your income and cash flow statement, balance

sheet and other financial ratios, such as break-even
analyses. This part may require help from your accountant
and a good spreadsheet software program.
 EXPLAINING THE BUSINESS PLAN
FORMAT

A) COVER LETTER
• The cover letter is often enclosed with the completed
Business Plan as an introduction to the purpose and
contents of the attached plan.
• This letter needs to specify what the entrepreneur hopes
to obtain from the Business Plan being submitted and
subsequently evaluated by the relevant recipient.
B) COVER PAGE
• The cover page presents certain basic introductory
information as follows:
• Title of the business plan
• Logo, name and address of the business
• Name of the writer/s
• Date of submission
• Company's mission
C) EXECUTIVE SUMMARY / ABSTRACT
• The executive summary is the most important section of a
business plan. This is the first section that needs to be looked
at and it tells readers where the company is and where the
company wants to go.
• Objective
• Products or services being offered
• Market potential
• Project management-  is the application of processes, methods,
knowledge, skills and experience to achieve the project objectives.
• Project cost-  is a method that uses technology to measure cost and
productivity
• Expected returns
D) TABLE OF CONTENTS
• This page will list the main headings, tables, schedules and
appendices according to page numbers.
• This list will facilitate the reader in identifying the
appropriate pages for easy reference.
E) MAIN BODY OF THE BUSINESS PLAN
• This section is central and vital in making up the complete
business plan.
• It contains information related to the various aspects of
the proposed venture particularly the administrative,
marketing, operation and the financial plans.
MAIN BODY OF A BUSINESS PLAN
 THE PURPOSE OF PREPARING A
BUSINESS PLAN

THE PURPOSE OF PREPARING A

BUSINESS PLAN

To allow the entrepreneur to view To allocate business resources

and evaluate the proposed business effectively
venture in an objective, critical and
practical manner

To analyse and evaluate the As a guideline for managing the

viability of a proposed venture business.

● To convince relevant parties of the

investment potential of the project
SWOT Analysis
• The entrepreneur can view and evaluate the proposed
business venture in an objective, critical and practical
manner by SWOT analysis, which highlights:
• Strengths
• Weaknesses
• Threats
• Opportunities
Analysis and Evaluation
• An entrepreneur must analyze and evaluate the viability
of a proposed venture.
• This is necessary to assist potential investors in analyzing
and evaluating the viability of a project.
 Allocation of Business Resources

• The effective allocation of business resources is used to

attract investment capital, secure loans, convince
workers to join, and assist in attracting strategic
business partners.
• The development of a comprehensive business plan
shows whether or not a business has the potential to
make a profit.
 As a guideline

• As a guideline for the managing the business, the business plan

helps entrepreneurs to track, monitor and evaluate their progress.
• The business plan is a living document that they will modify as
they gain knowledge and experience.
 To convince relevant parties

• A business plan is used to convince relevant parties of the

investment potential of the business project.
• To apply for loans or financing facilities from relevant institutions.
• State clearly the amount required and the purpose of the loan.
• Helps the financial institutions evaluate the viability of the proposed
project and decide on financing.
 Location of the Business

• Physical location of project

• Distance from the source of raw materials
• Availability of manpower
• Transportation facilities
• Distance from customers
 Organization / Administration Plan

Organization/ Management/ Administration Plan

Introduction to Schedule of tasks and

the organization Administration
responsibilities
budget
Organization chart/ Schedule of
Structure remuneration

List of administration List of office equipment

personnel and supplies
 MARKETING PLAN / ANALYSIS

Marketing Plan /Market Analysis

Target market Product or services

description/ product
Competitors (strength and innovation/Introduction
weaknesses)
Market size
Sales forecast
Marketing strategy
List of marketing personnel
Market share
List the main tasks and
responsibilities Marketing budget
 Operations Plan

Operations process / Process

innovation

Process flow chart

Schedule of tasks and
responsibilities

List of personnel Schedule of

remuneration
Operation Plan/
Production Strategy
Machinery and equipment
Material
requirement

Operations layout plan

Operations
Location of operations
budget

Operations overhead
Production schedule/Capacity planning –
Output in units/ Operations time
 FINANCIAL PLAN

Prepare the project

Prepare the sources of financial
implementation cost schedule
schedule

Financial Plan/Strategy/Analysis/Statement

Prepare the pro forma balance

sheet
Prepare the pro forma cash flow
statements
Prepare the proforma profit and loss
account/ proforma income
statement
Guidelines in Preparing Business Plan
 Information should be based on study

• Do not estimate the sales on the basis of plant

capacity.
• The planner must estimate the potential sales carefully
on the basis of the marketing study and form these
estimations to determine the production facilities
required.
Reasons for Failure in Business Plan
 Pitfalls to Avoid When Preparing a Business Plan

NO REALISTIC
GOALS FAILURE TO
ANTICIPATE
OBSTACLES

NO COMMITMENT
LACK OF BUSINESS OR
OR DEDICATION
TECHNICAL
EXPERIENCE

NO MARKET
NICHE
TUTORIAL ON SWOT ANALYSIS