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 IZMAYANI SA’ADIN

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

EXECUTIVE SUMMARY

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 INTRODUCTION

1. Introduction (Arial 12, BOLD)

1.1. Name of the Business
ABC Enterprise
1.2. Nature of Business
Manufacturing multipurpose detergents
1.3. Industry Profile
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 Issue semasa tentang industry anda
(trend, competitors, demand etc)
1.4. Location of the business
Alamat
1.5. Date of business commencement (start)
May 2019-Dec 2019
1.6. Factor in selecting the proposed business
 Ada permintaan
 Ada skill/expertise
 Less competition
1.7. Future prospects of the business
 Add more products
 Add more branch
 Expand the business to Asian

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

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 Partnership @ private limited company
(Sdn Bhd)
Main Activity Jenis perkhidmatan
Mengeluarkan sabun
Date of Commencement May 2019
Date of Registration April 2019
Registration Number
Name of Bank
Bank Account Number

3.1 Vision and Mission

3.1.1 Vision
-To be a leading company in detergent manufacturer
3.1.2 Mission
-We are committed to….
3.2 Organizational Chart
(GM + Head of Department)

GENERAL
MANAGER/CEO/PRESI
DENT/ MANAGING
DIRECTOR

HUMAN RESOURCE
FINANCIAL MANAGER OPERATION MANAGER
MANAGER

3.3 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

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)
 Two storey building
 Rental fee: RM2000/month
 Tenant in the mall

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
Introduce new products/services
Estimate market acceptance and sales
(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/service description

Product/SERVICE Description
TYPE
1. body massage Thai massage,

2. facial Mask etc

3. Hair treatment Cutting, perming, etc

PACKAGE 
1. student
2. wedding package
3.



Table 6.2.2 Product ilustration

6.3 Target market (Arial 12, BOLD)

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 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.

TARGET MARKET DESCRIPTIONS

Occasions Raya, dinner, etc

RESIDENTS BANDAR U, SIDEC ETC, TRONOH

BUSINESS/GOV AGENCY GOVERNMENT OFFICES IN S I SUCH

AS MDPT, IPD, BOMBA ETC

6.3.1 Geographic Segmentation with explanation (in a paragraph)

Location
6.3.2 Volume Purchase with explanation (in a paragraph)
6.3.3 Quality Evaluation of Distributor with explanation (in a paragraph)

6.4 Market size (Arial 12, BOLD)

6.4.1 Population table
6.4.1.1 Students
Table 6.4.1.1 Georgetown, Penang (example)

Type of outlet No of No of items to Price/unit Total

populations needed (unit) (RM)
Students
 IPTA 5000 4 10 5000 x 4 x
10=200,000
 IPTS 3000 4 10 150,000
Boarding 1000 2 10
school
TOTAL 350,000

6.4.1.2 Population 2
Table 6.4.1.2 Residents

Type of outlet No of No of items to Price/unit Total

populations needed (unit) (RM)
Bandar U 2000 8 15 Xxxxxxx
SIDEC
Tronoh
TOTAL

6.4.1.3 Population 3
Table 6.4.1.3 Population 3
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 Type of outlet No of outlet No of items to Price/unit Total
needed (unit) (RM)

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)
=350,000 + residents + offices= TOTAL MARKET SIZE1,000,000

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
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

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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 50 500,000
Competitor2 30 300,000
Competitor3 20 200,000
TOTAL 100 1,000,000

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 45 5
Competitor2 25 Differentiation
before and loss
Competitor3 15 Differentiation
before and loss
Your business 10 % 100,000 -
TOTAL 100 1,000,000

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 6.7 Sales forecast (Arial 12, BOLD)

Table 6.7 Sales Forecasting

Month Sales Forecast

1 100,000
- 100,000
12 100,000
Year 1 1,200,000
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 Organization Chart for Marketing Department (Arial 12, BOLD)

Figure 6.9 Organizational Chart (Head of Department + workers)

6.10 Manpower Planning (Arial 12, BOLD)

Table 6.10 List of Marketing Personnel

Position No of Personnel

6.11 Schedule of Task and Responsibilities (Arial 12, BOLD)

Table 6.11 Task and Responsibilities of Marketing Personnel : Head +

workers

Position Task and Responsibilities



6.12 Schedule of Remuneration (Arial 12, BOLD)

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 Table 6.11 Schedule of Remuneration plan of Marketing Personnel : Head +

workers

Position Qty Monthly EPF SOCSO Total

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

6.13 Marketing Budget (Arial 12, BOLD)

Table 6.12 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
Roti (material)
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 = RM83,403
The sales price = RM78
Number of output per month = Average sales forecast/Sale price per unit
=1069 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

1069/30 day=36 unit/day

7.4.3 Number of units per hour

Such as daily working hour = 8 hours
= No. of output per day / daily working hours
=36 unit/8hour=4.5 /5 unit

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

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 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 Amount of machine & equipment required (Calculate for every machine

usage)

Planned Rate of Production per day X Standard production time

Machine productive time per day
= 5 unit/5 hour X 1 hour
= 1 unit mixer

Example : Welding machine

33 X 11.21 min

420 min (7 hours x 60 minutes)

= 0.88 @ 1 machine

** Standard production time = one process cycle in minute/ quantity product

per cycle

7.6.2 List of machine & equipment

Machine No of machine
Welding machine
Cutter machine
7.6.3 Polish machine

List of machine supplier

Machine Supplier
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 Machine A XXX Company + Address
Machine B

7.6.4 Machine and Equipment (rental or purchase)

Item Quantity Price/unit Total Cost

(RM) Monthly
(RM)
Type of machine 1 6000 6000
(Mixer, drying, steam,
packaging)
Oven 2 5000 10,000
TOTAL 16,000

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 Amount of direct labour required (Calculate for every man power)

Planned Rate of Production per day X Standard production time

Machine productive time per day

 Example : Laboratory operator

33 X 0.9 min

420 min (7 hours x 60 minutes)

= 0.07 @ 1 operator

** Standard production time = one process cycle in minute/ quantity

product per cycle

7.7.3 List of Operation Personnel

Position No of personel
Laboratory operator
Operator
Cutter operator
Quality checker
I

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 )

7.7.4 Schedule of task and responsibilities

Position Task and Responsibilities



7.7.5 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

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

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 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 Location Plan (tell about factor affecting the business operation – refer slide) if

manufacturing premise located differently with main office

7.13 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)

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

with your business)

7.14.1 Manufacturing license
7.14.2 Building license
7.14.3 Environement license

7.15 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

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)

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 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





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)
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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

Other Expenses

TOTAL

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 FINANCIAL PLAN

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)

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)
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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)

CONCLUSION

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CONCLUSION

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APPENDICES

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PARTNERSHIP AGREEMENT

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