Your business is only as good as your business plan. Good business plans: give you a clear idea of your goal and targets clarify the means for achieving your goals determine your financial needs underpin your ability to raise capital add to your bottom line

// overview

1	Why do you need a Business Plan?
2	What Should a Business Plan Cover?
3	Sample of a Business Plan
4	The Last Word...

Why do you need a Business Plan? A business plan is an essential tool for any start-up entrepreneur. It is like a map or guide that shows you where you are at the moment and where you are going. Its unique feature, however, is the fact that you chart the course yourself. A good business plan includes: a description of products and services a competitive analysis, a marketing plan, a management plan, and a financial plan It will provide you-and potential investors or lenders-with a clear understanding of your objectives, strategies, and financial viability and could mark a difference between survival and failure. In planning your journey to success, you can anticipate the environment that you will face, the hurdles along the way, how much money you will need at each stage of the journey, the measures you will take to overcome the challenges and the contingency plans you will need. Altogether it should save you time and money, enable you to react more swiftly to the unexpected, help you solve problems and take advantage of new opportunities. In a nutshell, a business plan charts your course of action towards the establishment and growth of your company. It is a document that maps out all crucial areas of your business and how you would address the concerns within each area. It serves more purposes than you may realize. You will need a business plan to: present to a lender to raise funding for a new business raise funding for an existing business plan for the future of your business

What Should a Business Plan Cover? A good business plan should contain all the elements essential to the success of your enterprise. These would cover: A Summary of your Business Plan This will give your investor a first impression of whether your business is worth further scrutiny. A description of Your Company-Its Business, Goals And Objectives Include an explanation of the business that you are in and your company history, current business conditions, industry trends, and what makes you unique An analysis of Your Market And Your Marketing Strategy This is one of the more important sections of your business plan. Your market analysis therefore, should be as specific as possible, focusing on credible and achievable projections. A description of Your Products/Services Describe your product/service simply and list down its competitive advantage Your Organization Set-up Offer details of your business structure, listing down officers and/or principal owner/managers. Remember to include your management team's responsibilities and qualifications. Describe Your Operations State how you operate your business, giving details about location, facilities, equipment, raw materials and suppliers, workforce, hours of operation, and methods of record keeping. Include Your Financial Forecast This is another important part of your Business Plan as it demonstrates not only your need for funds but also the potential future value of equity investments or debt repayment. It will reflect the viability of your company. Include a Financial Forecast A financial forecast will show your company's most likely results of operations and financial position within a particular period in future. It should be realistic and achievable. Determine Your Proposed Financing This section only applies if you are looking for funds. Based on your need, state your requirements, when you will need the money, how you will use it and your pay back plans. Future Plan(s) It is important to show that you have the potential for continued profitability. Include a short term and a long term-plan. Other Considerations Table of Contents Supporting Documents e.g quality accreditations, awards, product warranties, testimonials etc Resum¨¦s of key people Evidence of credit Current leases for facilities, equipment, cars, etc. Letters of reference Completed and current contracts including loan agreements, purchase agreements, service contracts, etc. Legal documents of the business including articles of incorporation, titles, insurance policies, partnership agreements, patents, etc. Sample Business Plan The following is a business plan for a fictitious company, Sendiri Training Services & Computer Sales, with fictitious business owners, who sell computers and provide training services. The figures, specifications and scenarios used in the plan are not intended to be accurate.  BUSINESS PLAN Sendiri Training Services & Computer Sales February 2002 for Barwest Bank Sdn Bhd INDEX Page 1  Executive Summary                Introduction to Acme Business Services & Co                Product: Computer Sales                Product: Training Services                Why the Business will Succeed                Financial Summary Page 2  Management                a) Proprietor: Employment Record                b) Junior Partners: Brief Summary                c) How and Why the Business Started  Page 3  Product / Service                                              a) Computer Sales                b) Printer Sales                c) Training Sales  Page 4  Marketing                                                         a) The Market Size                b) Future Growth                c) Market Sector                d) Expected Client Profile                e) Competitors  Page 5  Sales                                                            a) Advertising                b) Promotion                c) Who will Sell                d) The Unique Selling Points                e) Setting the Price  Page 6  Operational                                                       a) Location                b) Equipment and Costs To-date                c) Equipment Required                d) Staff  Page 7  Short - Medium Term Trading                a) Objective Short Medium-term                b) What if ? - Contingency Plans  Page 8  Financials                                          Page 9  Contact Details                                                      End Executive Summary Introduction to Sendiri Training Services & Computer Sales: Sendiri Training Services & Computer Sales has been established for two months, and trades on a regional basis. There are currently two partners: Salim Mokhtar(28) and Jane Pillai(25), who have extensive experience of computers and training.  Product: Computer Sales Salim Mokhtar has been building computers for five years for the well-known firm BuildComputer.com and he has access to favourably priced computer parts. The computers are aimed at the corporate market, with service contracts available. Product: Training Services Jane Pillai has been involved in computer training for 5 years, the last two years as an independent consultant. Jane specializes in cutting edge technology. The planned courses run for 2 - 3 days, with quarterly 1-day progress and update courses to keep those under training up-to-date with the latest technology. Why the Business Will Succeed: Jane and Salim complement each other - Salim worked for his father for four years as an office manager in a small manufacturing company, as such he has strong managerial skills to complement Jane's ability to easily digest new technology and her undoubted skills in technology training. Further, both parties bring existing business and network contacts. Both parties believe that they could increase their own business areas by 200% within 6 - 12 months if they could delegate some less skilful areas within their current work schedules.    Financial Summary: As you will see from the enclosed financials, the markup is 40% with an expected profit of RM500,000 in the first year. They have RM100,000 capital to invest in the company and seek further funds of RM250,000 from a lender - secured on Salim's property. An overdraft facility of RM80,000 is also required to finance larger than expected growth if cash flow is limited due to increased costs.    Management Proprietors: Employment Records Salim Mokhtar - CV attached Aged 28, Salim with a BA in Economics from Universiti Malaya(1994), has always held responsible positions in his career to-date. Working for his father's manufacturing company as office manager for five years up to 1995 where his interest in computers began. For the past three years Salim worked for WeBuildComp.com as Computer Services Manager  and has gained much experience of 'blue chip' requirements. Salim has  been married for 4 years with two young children.   Jane Pillai - CV attached Aged 25, Jane with a BSc in Communications  from the University of Adelaide and an MSc in Computer Technology from Universiti Sains Malaysia, has always sought positions that allow her to use her skills as a communicator and organiser. Jane worked for the leading firm WinMac Training Systems for three years before branching out as a successful independent training consultant two years ago. Other: Brief Summary Salim Mokhtar's father, Ibrahim, will be assisting with the initial setup of the manufacturing outlet. He is retired after running his own successful manufacturing business for 40 years. And of course, he will be available as an ongoing source of help and advice. Two other suitable individuals have been sounded out for management positions and are keen to be involved with this venture.  How and Why the Business Started: Jane and Salim worked for the same client about a year ago and have used each other's services on an informal basis since then. They believe that actively sourcing business for each other as a combined service will give them 'first sight' of opportunities.        Product / Service Computer Sales: Three standards of computers will be built: RS 01 350 MHz   32MB  6.4GB 15" ScreenRS 02 450 MHz   64MB  6.4GB 15" ScreenRS 03 550 MHz  128MB 12.6GB 17" Screen Each machine can have a number of specified built-in add-ons: CD ROM, DVD, Modem: The machines will be built in their own manufacturing unit, with service for the first year on the client's site. Servers will be purchased as required to the specifications of the client. Printer Sales: A number of leading laser and ink jet printers will be available, with the anticipated service contracts as a major source of income. Training Sales: Four levels of training will be available: 1. Trainee  up to 8 persons with no, or little, computer experience 2. Basic  up to 8 persons with basic computer skills 3. Intermediate  up to 8 persons who have a good working knowledge of computer systems 4. Advanced  up to 4 persons who understand technical computer systems  Marketing The Market Size: Currently, corporate computer sales are rising at 15% per quarter. It is expected to continue at that rate for another two - three years. There are few businesses that will avoid using a computer in that period. The ability to configure a network of computers will be an important requirement. Future Growth: The computer is still not integrated within 75% of Malaysian businesses. The computer will not be superseded within the next five years, and even then it is hard to see a dramatic change in hardware that will not be backward compatible.  Market Sector: Based in the Klang Valley the need for computer hardware and training is always available. SME Office space is increasing by 10% per annum. There are currently 120,000 SME's in the Klang Valley Expected Client Profile: Small Medium Enterprise (SME). Computer Sales Medium - Large Companies for Training Services, Commerce and Industry. Turnover RM12m , prefer client to be computer literate Competitors COMPUTERS Six companies have been identified as true competitors i.e. computer and peripheral sales and service direct to corporate clients on-site. The three main competitors are: ABC Computers-Established 6 years, turnover RM? (Not Known), 6 staff, no growth in past, two years. Mah Lok PC -Established 4 years, turnover RM11m, 10 staff, specialist computer systems, steady growth; Corporate Comps (National Company)Established 2 years, turnover RM42m, 40 staff, mainly top end clients, always stretched. Summary Service complaints are common with all competitors, and hardware upgrades are long overdue. Corporate Comps are looking to revamp their national operation in the spring.  TRAINING Three companies currently service the above client profile in computer training. The top two are: Easy Train: Established 15 years, turnover RM5m, computer training staff 4, no plans for rapid growth The PC Training Co. (National Company): Established 8 years, turnover RM35m, computer training staff 35, no local office. Summary: At present demand exceeds resources. No effective competition is challenging the top companies, who offer only limited cutting edge technology training skills.     Sales Advertising: An advert have been placed in the 'Computer Sales' and 'Training' sections of Yellow Pages. The Tuesday Computer section of the New Straits Times (on going), PCMAC Computer Monthly magazine Promotion: Targeted mail shot within 3 months. Telesales company to start promotion within 1 month. Two regional computer shows booked - 1st in 2 months, 2nd in 6 months   Who Will Sell: Both proprietors are competent sales negotiators The Unique Selling Points: Dual capability of hardware supplier and training provider Latest technology training package Availability  Setting the Price  COMPUTERS Prices include 1 year on-site total cover RS 01: 350 MHz, 32MB,  6.4GB, 15" Screen -RM3575.00. RS 02: 450 MHz,   64MB,  6.4GB, 15" Screen-  RM4400.00. RS 03- 550 MHz,  128MB, 12.6GB, 17" Screen- RM5550.00. PC Service contracts are RM800 per annum for one PC and then RM475 for each additional PC. Printer is RM300 per annum for one, then RM150 for each additional unit   TRAINING RM600 per day  Trainee:  up to 8 persons with no, or little, computer experience RM700 Per Day  Basic  up to 8 persons with basic computer skills RM900 per day.  Intermediate:  8 persons, a good working knowledge of computer systems RM1500 per day.  Advanced:  up to 4 persons who understand technical computer systems 20% reduction for in-house training