Assoc. Prof. Dr. Nik Maheran Nik Muhammad, (CFP, CITM, IBBM)
Definition of planningWhat is business planningHow to write a
business planOperational planOperational and Business ModelThe
Business plan and operational plan cycle
PLANNINGPlanning is "identifying and selecting appropriate goals
and courses of action.Three steps of planning exist. First,
determine the organization's mission and goals. defining the
business and establishing major milestones. Secondly, formulate a
business strategy. analyze the current situation and develop
strategies that correspond to it. Thirdly, implement the strategy.
allocate resources and responsibilities to achieve those
A mission statement occurs during the initial planning stage of
determining the organization's mission and goals.
A mission statement shows how an organization is unique and
it distinguishes and differentiates the organization from
A mission statement is brief.
BUSINESS PLANA business plan is a formal statement of a set of
The business plan helps guide the direction of any new
Business Plans are most often created for new companies looking
for start-up funding, It may also contain background information
about the organization or team attempting to reach those goals
Business plan..cont.Business Plans: The Company Description
Without too much superfluous detail, the company description
section of the business plan should clearly define the basics of
the company or business.
WRITING A BUSINESS PLANInternal Document that:Outlines a
business direction, philosophy, and purpose;
Examine its current status and terms of its strength,
opportunities and threat (SWOT);
Set long term objectives, and formulates short term tactics to
Business plans have many different presentation formats,
business plans typically cover five major content areas:
Company descriptionAn Operational planA marketing planA
financial planGovernance/management team
Writing a business plan.cont.
Writing a business plan.cont.When you write a company
description, you should cover the following:Company nameForm of
organization. (Sole Proprietor, Partnership, etc.)Ownership full
name of the owner/ownersLocation, offices headquarters, branches.
Explain the benefits of the locationDefinition of the business. The
products or services will be outlined without too much detail. A
more thorough description will appear in the chapter on products.
It will also describe the reasons for and advantages of the choice
of product or service.History of the company. If the business is
new, give a short historical sketch of the idea behind the
foundation of the company. For an already established business,
explain its origin, and the development of the product or service
over time. Include some historical data on sales and profits. After
giving the historical background, outline the current status of
your business. State the business history and purpose of the
company clearly.Company goals plans to be accomplished over coming
years (up to five years in advance), and how these are going to
relate to the investment you are seeking. Keep the the goals
realistic and credible.Future plans for the growth and expansion of
the company. Will you keep the business smal? Do you plan to expand
extensively? Link this to the projected investment. Once again, be
moderate and keep things simple and believable.
Presents the companys action plan to execute its vision
Details of operation plan:Everyday process (Short Term
Process)Business Milestone (Long Term Process)
Everyday Process (short term)Customer service - marketing
Systems to provide customers with product and services
CONCEPT vs. REALITYOperational plan must prove that managerial
team can execute concept better than anyone else
Business milestone (Long Term)Company vision financial plan Key
milestoneWhen will the product be launched and available in the
market placeRevenue milestone will be attainedKey partnership will
be executedKey customer contract will be securedKey financial event
will occurKey employees will be hired
MARKETING PLANPlan that details a company's marketing effort;
also called marketing strategy. The plan specifies the marketing
goals and objectives to be achieved over a specific time period.The
strategies will involve the proposed development of :the
product(s), the definition of the target market(s), and the types
of media and sales promotions to be used.
FINANCIAL PLANFinancial plan section is the section that
determines whether or not your business idea is viable, and
Is a key component in determining whether or not your business
plan is going to be able to attract any investment in your business
idea.Indicate from:PROFORMA FINANCIAL STATEMENTBUSINESS
FORECASTCASH FLOW ANALYSIS
OPERATIONAL and BUSINESS MODELAn operational model is a
demonstration of a process
The term business model describes a broad range of informal and
formal models that are used by enterprises to represent various
aspects of business, such as: operational processes, organizational
structures, and financial forecasts
Components of a business model
Infrastructure core capabilities: The capabilities and
competencies necessary to execute a company's business model.
partner network: The business alliances which complement other
aspects of the business model. value configuration: The rationale
which makes a business mutually beneficial for the industry and its
Components of a business modelcont
Offering value proposition: The products and services a business
Components of a business modelcontCustomers Target customer: The
target audience for a business' products and services.
Distribution channel: The means by which a company delivers
products and services to customers. This includes the company's
marketing and distribution strategy.
Customer relationship: The links a company establishes between
itself and its different customer segments. The process of managing
customer relationships is referred to as customer relationship
Components of a business modelcontFinances Cost structure: The
monetary consequences of the means employed in the business
Revenue: The way a company makes money through a variety of
revenue flows. A company's income.
THE BUSINESS PLAN AND OPERATIONAL PLAN CYCLEBUSINESS
PLAN:Rational of doing businessOPERATIONAL PLAN:Plan for
implementationWhere are we now?2. What are our goals?3. What is our
rational/ justification for them?What are the different avenue to
get them?5. What is the best avenue and what will it involved?7.
What resources are required?8. What are the majorChallenges to
successAnd how can they be Managed?9. What criteriaShould we use
toEvaluate and Determine if we haveAchieve our objective?6. How
long will itTake and what are theKey milestone inGetting them?
YOUR BUSINESS PLAN.
BE AGGRESSIVE BUT CREADIBLE !!!