THE BUSINESS PLAN

LEARNING OUTCOMES:

1. Describe a business plan and its contents

2. Prepare a business plan

 The blueprint of the
company which is presented
in a standard business
format that is logical &
realistic

Summarizes the operational

and financial objectives of
the business and contains
the detailed plans and
budgets

BUSINESS PLAN
 Entrepreneur

Shareholders

Bankers

Investor

Management/employee
Who need a
business plan? Client/customer
 Set the business
Creates the
mission
opportunity for 1 2
success
Determine the right
way of managing the
Determine the 3 4 business
company’s main
competitor Determine barriers to
the venture
Increase the 5 6
stakeholders’
confidence

Determine the
7
company’s IMPORTANCE
performance
 • Focus on the
industry, the • target market,
products/servi market size and • financial
BUSINESS PLAN

ces, business market share, to calculations for

location and compare with the business
competitors
background
Business Marketing Financial
Concept Plan Plan

Administration Operation
Plan Plan
• business structure, • business
remuneration of staff operation,
and their process of
responsibilities, list of input to
office equipment and produce output
 CHAPTER 4
THE ADMINISTRATION PLAN
LEARNING OUTCOMES:

1. Describe the types of business structures

2. Write an administration plan

 To ensure the
Types: organization has
1. Functio adequate and
n qualified workers
2. Product as and when
3. Custom required
Administration Business Organization Personnel
er
Plan Ownership Structure Planning
describes the overall 1. Sole proprietorship Design considerations:
• Identify the
management of a 2. Partnership Division of work:
job and
business, to ensure 3. • all activities identified
Private limited preparing job
the objectives are company and assigned, no
description
achieved 4. Public limited overlap
and job
company Unity of command:
specification
• ensure workers receive
• Recruiting the
commands from only 1
qualified
manager
workers
Span of control
• Retaining
• 1 supervisor: 8 to 20
 ⮚ Business Concept

1. Business/company background
• Details on company’s background &
basic information

2. Background of
owner/partners/directors
• Personal particulars of the owner,
partners/directors
3. Background of the proposed
• The partnership agreement
business
• Discuss about the physical location
of the purpose venture
 SOLE PROPRIETORSHIP

PARTNERSHIP
BUSINESS
WNERSHIP PRIVATE LIMITED COMPANY

PUBLIC LIMITED COMPANY

 SOLE PROPRIETORSHIP

• Solely owned and operated by one individual/single owner

• Only Malaysian citizens who are permanent residents allow to register

Advantages Disadvantages
• Ease of formation • Unlimited liability
• Total responsibility • Lack of continuity
• Retaining profits • Incurs all losses
• Freedom of choice • Limited access of funds
 PARTNERSHIP

• Owned by at least two or more individuals, not exceeding max no 20 persons

• Each partner contributes money, labour, or skills and shares the profits/losses
• General Partnership & Limited partnership

Advantages Disadvantages
• Increase in resource capital • Unlimited liability
• Sharing all business risks • Limited life span
• Direct rewards • Lack of continuity
• Ease of formation • Conflict
 PRIVATE LIMITED COMPANY

• Company limited by shares and owned by a group of people with at least 2 or more
individuals, not exceeding 50 (pool their capital & work together to form a
company

• Example: Twelve N’s Sendirian Berhad (Sdn Bhd) / Twelve N’s Private Limited (Pte Ltd)

Advantages Disadvantages
• Limited liability • High set-up costs
• Perpetual life • High taxation
• Attracts skilled employees • Limited membership
• Ease of expansion • Lack of freedom in the transfer of
ownership
 PUBLIC LIMITED COMPANY

• Owned by at least seven or more individuals and unlimited

• Shares of stock can be easily purchased/sold by investors

• Example: Twelve N’s Berhad (Bhd.)/ Twelve N’s Limited (Ltd)

Advantages Disadvantages
• Perpetual life • High taxation
• Transfer of ownership • High set-up costs
• Ease of expansion • Agency problem
• Economies of scale • Restriction of activities
 Activity 1:
Administration
Budget Logo, Vision, Mission,
Activity 7:
Objectives
Activity 2:

Organizational
Administration Structure
List of Office
Activity 6:
Activity 3:
Equipment Plan
Manpower
Planning
Activity 5:

Remuneration Plan Activity 4:

Schedule of task and

Activity 1: A statement of purpose or reason for the company’s
existence
“ To become market leader in Muslimah wear in
Malaysia within 5 years”

Log Missio
o n

Visi Objecti
on
The framework for all the strategic planning More specific andves
vision and mission
must support the
and portrays the long term goal of the
business Smart, Measurable, Attainable,
“ To become the leader in Muslimah wear in Realistic and Timely (SMART)
Malaysia” “ To provide basic informal learning to
children ”
“ To instill moral values in children
from an early stage”
“ To provide basic technological
knowledge for children ”
Activity 2:

Company Organization
•Structure
Present the schematic representation of the
organizational structure.

• Show all positions for every department:

Administration, Operations, Marketing, and
Finance
Activity 3:

Manpower Planning
List the job positions and number of employee
needed to run the company

Position Number
CEO 1
Activity 4:

Schedule of tasks and

responsibilities
List the job positions and descriptions of the responsibilities for
each position.

Position Job Description

CEO
Activity 5:

Remuneration Plan
List the cost for manpower taking into account monthly salary
and allowances

Position No Monthly Allowance Total

salary (RM) (RM) (RM)

Total
Activity 6:

List of Equipment &

Supply
List down all office equipment and supply necessary for the
administration of the company

No Item Quantity Price per unit Total

(RM) (RM)
1 Computer
Workstation

Total
Activity 7:

Fixed expenses
Long term investment of fixed assets for
Admin administration purposes: computers,
printers
Budget
Prepare the
administration Monthly expenses
budget according Payments made every month for
to administration administration activities
activities Example: Paper, printing ink, salary,
utilities
Other expenses
Cost incurred once a year or on periodic
basis
Example: Dinner for administration staff
Admin
Administrative Expenditure
Budget RM RM
Fixed assets/capital
expenditure
Computer (Asset)

Working
capital/monthly
expenditure
Worker’s salary
Office supplies
Internet
Water bill
Electricity bill
Telephone/fax
Total