1. Assoc. Prof. Dr. Nik Maheran Nik Muhammad, (CFP, CITM, IBBM)

2. PRESENTATION OUTLINE Definition of planning What is business planning How to write a business plan Operational plan Operational and Business Model The Business plan and operational plan cycle

3. PLANNING Planning is "identifying and selecting appropriate goals and courses of action.“ Three steps of planning exist. 1. First, determine the organization's mission and goals. defining the business and establishing major milestones. 2. Secondly, formulate a business strategy. analyze the current situation and develop strategies that correspond to it. 3. Thirdly, implement the strategy. allocate resources and responsibilities to achieve those strategies.

4. Mission Statement 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 important. it distinguishes and differentiates the organization from competitors. A mission statement is brief.

5. BUSINESS PLAN A business plan is a formal statement of a set of business goals; The business plan helps guide the direction of any new company. 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

6. 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.

7. WRITING A BUSINESS PLAN Internal 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 reach them.

8. Business plans have many different presentation formats, business plans typically cover five major content areas: 1. Company description 2. An Operational plan 3. A marketing plan 4. A financial plan 5. Governance/management team Writing a business plan….cont.

9. When you write a company description, you should cover the following: Company name Form of organization. (Sole Proprietor, Partnership, etc.) Ownership — full name of the owner/owners Location, offices headquarters, branches. Explain the benefits of the location Definition 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.chapter on products 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.

10. OPERATION PLAN Presents the company’s action plan to execute its vision Details of operation plan: Everyday process (Short Term Process) Business Milestone (Long Term Process)

11. Everyday Process (short term) Customer service - marketing plan Systems to provide customers with product and services CONCEPT vs. REALITY Operational plan must prove that managerial team can execute concept better than anyone else

12. Business milestone (Long Term) Company vision – financial plan Key milestone When will the product be launched and available in the market place Revenue milestone will be attained Key partnership will be executed Key customer contract will be secured Key financial event will occur Key employees will be hired Targeted date

13. MARKETING PLAN Plan 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.

14. FINANCIAL PLAN Financial 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 STATEMENT BUSINESS FORECAST CASH FLOW ANALYSIS

15. GOVERNANCE Partnership Alliances Business Ventures

16. OPERATIONAL and BUSINESS MODEL An 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

17. 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.business alliances value configuration: The rationale which makes a business mutually beneficial for the industry and its customers.

18. Components of a business model…cont Offering value proposition: The products and services a business offers.

19. Components of a business model…cont Customers 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.distribution 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 management.

20. Components of a business model…cont Finances Cost structure: The monetary consequences of the means employed in the business model. Revenue: The way a company makes money through a variety of revenue flows. A company's income.

21. THE BUSINESS PLAN AND OPERATIONAL PLAN CYCLE BUSINESS PLAN: Rational of doing business OPERATIONAL PLAN: Plan for implementation 1.Where are we now? 2. What are our goals? 3. What is our rational/ justification for them? 4.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 major Challenges to success And how can they be Managed? 9. What criteria Should we use to Evaluate and Determine if we have Achieve our objective? 6. How long will it Take and what are the Key milestone in Getting them?

22. YOUR BUSINESS PLAN…………. BE AGGRESSIVE BUT CREADIBLE !!!

23. THANK YOU QUESTIONS?????