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Entrepreneurship
Course
EMBA Batch
April 2013
Session 4
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The ProgramSession Topic Curriculum Date
1 Introduction
Welcome the students Explain course and schedule The Contract Students expectation of the course InteractionI the Business Case Study #1 InteractionThe Name Ball Interaction-I the Investor Part 1 Discussion Singapore Incorporated and Entrepreneurship
9th April7.00 pm to 8.15pm
2 Entrepreneurship
Presentation Entrepreneurship Process
Presentation Leadership and Entrepreneurship explained InteractionI the Business Case Study #2 Discussion Doing Business in India and China
9th April9.00 pm to 10.15 pm
3 The Entrepreneur
Interaction Jockey Quiz Presentation Myths about entrepreneurship Presentation The ten mistakes a new entrepreneur make InteractionI the Business Case Study #3 Self Assessment - Are you the entrepreneurial type? Discussion Challenges of an Entrepreneur
10th April7.00 pm to 8.15 pm
4 Business Planning
Presentation Generating ideas and opportunities Presentation Types of Business Plan Presentation Making assumptions and identifying constraints InteractionI the Business Case Study #4 Interaction Briefing on The Coffee Stall Business Discussion Business Entertainment
10th April9.00 pm to 10.15 pm
5Site Visit at DignityKitchen
Understanding of social entrepreneurship Learning the value of business (The Coffee Stall Business)
11th April6.00 pm to 8.30 pm
6
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The ProgramSession Topic Curriculum Date
7 Getting Started in Business
Presentation Understanding and evaluating business risks Presentation Taking Risk Presentation Funding Types and Process Presentation Closing the Deal Interaction - I the Investor Part 2 InteractionI the Business Case Study #5 Discussion - My Business Values
13th April2.00 pm to 3.15pm
8 Doing Business
Presentation Business structures & its incorporation
Presentation Processes and System Presentation Maintaining a business Presentation Growth of a Business InteractionI the Business Case Study #6 Discussion Learning from the $100 Experience
13th April4.00 pm to 5.15 pm
9 Success in Business
PresentationDeath of a business Presentation Why business failed Presentation Element of Success in Business
Discussion Bad Business Practice
13th April6.00 pm to 7.15 pm
10 Assessment I the Business Individual Assessment14th April
10.00 am to 11.15 am
11 Assessment The $100 Experience Business Plan Presentation14th April
12.00 pm to 1.15 pm
12 Conclusion
Course Review Result of your Assessment Review of The Contract
14th April2.00 pm to 3.15 pm
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Session 4Business Planning
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Presentation :Generating Ideas and OpportunitiesBusiness PlanningApproach to Strategic Planning
Interaction :I the Business Case Study #4Briefing on The Coffee Stall Business
Discussion
Guan Xi and Business EntertainmentBackground ReadingQuestions and Answers
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Ideas and Opportunities
PresentationChristopher Benjamin Consultancy Services 5
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Marina Bay Sands Integrated Resort
Opportunities?
.. back in Singapore
Ideas and Opportunities
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Ideas and Opportunities
What is an opportunity?
The dictionary defines opportunity as:
1: a favorable juncture of circumstances;
2: a good chance for advancement or progress.
Opportunities exist when there is a problem to solve,
where there is a need or a want.
What is an idea?
An idea is a plan for action.
I n entrepreneurship, it is cri tical to understand how these two concepts are diff erent
as well as how they relate.
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Ideas and Opportunities
Opportunities can be defined as problems or needs,
while an idea may be identified as the solution.
An innovative idea is of no value if there is noopportunity or market.
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Ideas and Opportunities
Ideas Opportunities
Instant Noodles World War 2 and the need for food
Avon Cosmetics Sell direct
Cadbury Chocolate Therapeutic potion to pleasant drink with sugaradded
Heinz Baked Beans No artificial preservatives, no impurities, nocoloring and money back guarantee
Yale Hobbs Lock for security
Macdonald Franchise for ease of business startupSony Walkman Personalise music system
Mobile Phone Need for communication
Many more.
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Ideas and Opportunities
Identify the needs not wants
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Ideas and Opportunities
Self Actualisation
Esteem NeedsSelfesteem
Recognition
Status
Social Needs
Sense of belonging
Love
Safety Needs
Security
Protection
Physiological Needs
Hunger
Thirst
Maslows Hierarchy of Needs
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Ideas and Opportunities
According to a study by The National Federation of
Independent Business:
"2,994 start-ups showed that founders who spent along time in study, reflection, and planning were no
more likely to survive their first three years than
people who seized opportunities without planning."
Procrastination.
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InteractionGiven a recent HEADLINE
What are the opportunities?
Then what are the ideas??????
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The World Trade Centre
September 11th 2001
Ideas &
Opportunities???
Ideas and Opportunities
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Evaluating Opportunity1. Has the opportunity been considered by others?
If yes, have others selected or acted upon it?
2. Can I determine how long the opportunity may last?
3. Am I satisfied that I have accurate and sufficient information about the opportunity?
4. Have I specifically defined the opportunity?
5. Will people care about the opportunity?
6. Is this the best opportunity I can envision?
7. Can I generate a good idea to match the opportunity?
8. Does the opportunity suit my personal goals?
9. Are there any regulatory systems that may restrict or limit the opportunity I envision?
Regulatory systems may include laws, bylaws, school rules or others.
10. What is the target market?
Have I studied the lifestyle and created a customer profile of the type of consumers that wouldtake interest in this opportunity.
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Missed Opportunities
Missed Opportunity = EMOTIONAL BLOCK
An emotional blockmay be overcome with greater self confidence and self
esteem.
Fear, distrust, desire for security, and the inability to change may prevent you
from generating creative ideas.
Staying flexibility is a great method for overcoming an emotional block.
Decision in seizing opportunity has to look at in the context of GOOD andBAD; not RIGHT and WRONG.
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Chrisbens Axis of Strategic
Directions
InteractionChristopher Benjamin Consultancy Services 25
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Ideas and Opportunities
Chrisbens Three Axis Approach
Value Chain
Demographic
Industry
Globalisation
Application
To Customers
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Business Planning
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What is a business plan?A business plan is a formal presentation (often a document and/or
Power Point slides) that outlines how you will launch, market,
manage and finance your business idea. It shows how well you
and your partners are qualified to run the business. Anyonereviewing your business plan should be able to see how much
thoughtyou have put into your business idea and opportunity.
a basic planning tool that bridges the gap
between thinking and doing
a physical printout of your mental idea
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Why is business planning so important?
A business plan precisely defines your business, identifies yourgoals, and serves as your firms resume.
The basic components include a current and pro forma balance sheet,
an income statement, and a cash flow analysis. It helps you allocateresources properly, handle unforeseen complications, and make goodbusiness decisions.
Additionally, it informs sales personnel, suppliers, and others about your
operations and goals.
From the US Small Business Association
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Type of Business Plans
STRATEGIC PLANS outline the actions necessary to achieve long-range goals. Applies mainly to on-going business.
TACTICAL OR OPERATING PLANS focus on the short-run, usually
one year. Normally as a result of changes affecting the business,where a review was necessary
FUNCTIONAL PLANS specify short- to medium-range actions havingto do with specific aspects of the business, such as marketing,
finance, manufacturing, or personnel.
INVESTMENT PLAN, used by small business owners to gain accessto financing from banks or venture capitalists.
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Who will see my business plan?
Anyone who is willing to take a risk on being a part of yourbusiness venture will see your plan. This includes investorssuch as a bank or other supporting organization orindividuals that may lend you money to get started.
Other interested parties include organizations that maychoose to partner with you, as well as suppliers and buyers
who will depend on your business to buy or sell theirproducts.
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Approach to Investment
Planning
Presentation
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Details of a Investment Plan
1. Executive Summary
2. Company BackgroundBusiness HistoryGrowth and Financial ObjectivesLegal Structure and Ownership
Company Location and Facilities
3. Plans for Financing the Business
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Executive SummaryThe Executive Summary is the most critical
element of the business plan.
If it does not grab the investor's attention, theinvestor will neither read nor request the full
business plan. As such, spend time developing the
best possible summary.
Work to get it in the hands of the right investors bycreating two versions :
Stand-alone executive summary Plan predecessor
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Executive SummaryThe Plan Predecessor
When the Executive Summary precedes the business plan, its lengthshould be short, typically only one to two pages and certainly no longerthan three pages. This is because the Executive Summary is not meantto tell the whole story of the business opportunity. Rather, the summary
must simply stimulate and motivate the investor to learn more about thecompany in the body of the plan.
The Stand-aloneThe second type of Executive Summary is a stand-alone document.That is, it is given, by itself, to investors for their initial review. Purpose isto entice interest in your plan. If interested, the investor will then requestthe full business plan. A stand-alone Executive Summary is often used tolimit the flow of information. That is, if an investor is not interested in thegeneral opportunity that your summary presents, you don't want toreveal to them intimate details of your plan.
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Details of a Investment Plan4. Organization
Team MembersOrganizational StructureOther Key Employees
5. Shareholding Structure and Principal Shareholders
6. Market AnalysisSummaryIndustry AnalysisTarget MarketCustomer ProfileMajor competitors and participantsMarket SegmentationProjected Market Growth and Market Share Objectives
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Details of a Investment Plan7. Product / Service Offering
Product / Service SummaryProduct / Service UniquenessProduct / Service Descriptions
Competitive ComparisonsResearch and DevelopmentPatents and Trademarks
9. Manufacturing / Production Plan (optional)
Production IssuesCurrent Plant Production and CapacityQuality ControlLabor Force
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Details of a Investment Plan10. Marketing Plan
Creating and Maintaining CustomersProduct Pricing StrategyProduct Positioning
Sales and Distribution PlanPromotional Strategy
11. Financial Plan and AnalysisBalance Sheet
Income StatementCash Flow BudgetStartup CostAssumptions
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Where do I begin?
Be aware of some general rules for preparing a plan:
BE HONEST with yourself and your teammates, investors, and others involved in your plan.
PRACTICE GOOD WRITING SKILLS: use clear language, accentuating the positive.
SHOW YOU HAVE DONE YOUR HOMEWORK: make sure it is clear that you have carefully evaluatedyour business idea and opportunity, and that you have taken the time to look at other business cases,both the successes and the failures
STRESS YOUR UNIQUENESS: how do you and your business idea stand out from the crowd?
MAKE THE PLAN LEGIBLE AND NEAT: use appropriate print and paper.
USE CHARTS, TABLES, ILLUSTRATIONS AND PHOTOGRAPHS when applicable
BE REALISTIC: do not exaggerate what you will be able to do with your time and resources.
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Financial for a Culinary School
Presentation
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Phase 1 Phase 2 Phase 3 TotalFrom From From From
M1 M7 M13 M1
To To To To
M6 M12 M24 M24
(6 months) (6 months) (12 months) (24 months)
Capital Expenditure $ $ $ $
Renovation 295,415 0 0 295,415
Fixtures and Fittings 82,690 0 0 82,690
Equipments 93,750 0 0 93,750
Total 471,855 0 0 471,855
Downpayment (20%) 94,371 0 0 94,371
Hire Purchase and Leasing (80%) 377,484 0 0 377,484
Finance Cost (5% PER ANNUM) 9,437 9,437 18,874 37,748
Installment Payable (5 YEARS) 47,186 47,186 94,371 188,742
Projected Capital Expenditure and Equipping Plan
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Renovation
Plumbing & Waste Work $63,200Fire Fighting (Provisional) $28,000Air Cond and Exhaust $87,000
Flooring / Ceiling / Wall Work $92,215Electrical Work $25,000
Total $295,415
Fixtures and FittingsReception / Admin $14,450
Training Room $14,750Food Court Dining Area $39,040
Stalls & Catering Kitchen $14,450Total $82,690
EquipmentsComputer and Peripherals $10,000
Teaching Aids $15,000Kitchen Equipment $56,000
Changing Rooms Lockers $6,750Signages and Graphics $6,000
Total $93,750
Projected Capital Expenditure and
Equipping Plan - Detailed
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Phase 1 Phase 2 Phase 3 Total
From From From FromM1 M7 M13 M1
To To To To
M6 M12 M24 M24
(6 months) (6 months) (12 months) (24 months)
Staff $ $ $ $
Assume OperationalM4
Executive and Admin Office
Executive director ($5,000:$8,000 per month) 30,000 30,000 96,000 156,000
Accountant ($4,000 per month) 24,000 24,000 48,000 96,000
Business development executive ($2,500 pm) 0 15,000 30,000 45,000Clerical staff (2 pax at $1,500 per month each) 0 9,000 36,000 45,000
Training Division
Training director ($5,000 per month) 30,000 30,000 60,000 120,000
Trainers (6 pax at $2,000 per month each) 12,000 72,000 144,000 228,000
Program coordinator ($1,500 per month) 0 9,000 18,000 27,000
Training coordinator ($1,500 per month) 0 9,000 18,000 27,000
Food Court Division
Operation manager ($3,000 per month) 18,000 18,000 36,000 72,000
Catering staff (2 pax at $1,000 per month each) 6,000 12,000 24,000 42,000Cashier (2 pax at $1,500 per month each) 0 36,000 36,000 72,000
Cleaner (2 pax at $1,500 per month each) 0 36,000 36,000 72,000
Gross Salary 120,000 300,000 582,000 1,002,000
Employer's CPF (14.5%) 15,660 35,670 73,950 125,280
Skill Development Levy (0.25%) 300 750 1,455 2,505
Total Payroll Cost 135,960 336,420 657,405 1,129,785
Projected Staffing Plan
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Phase 1 Phase 2 Phase 3 TotalFrom From From From
M1 M7 M13 M1To To To To
M6 M12 M24 M24
(6 months) (6 months) (12 months) (24 months)Fixed Expenses $ $ $ $
Rental 21,732 21,732 43,464 86,928
Utilities 28,800 28,800 57,600 115,200
Telecommunication 2,700 2,700 5,400 10,800
Maintenance and upkeep 21,000 21,000 42,000 84,000
Advertising & Promotion 15,000 10,000 12,000 37,000
Miscellaneous 12,000 12,000 24,000 48,000
Operating Expenses 101,232 96,232 184,464 381,928
Projected Essential Operating Expenses
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Projected Essential Operating Expenses - Assumptions
(sq ft) Total Cost
Training Centre area 7244 $3,622.00Rental per sf $0.50
Utilities per month $4,800
Telecom per month $450
Maintenance per month $3,500
Miscellaneous per month $2,000
Projected Essential Operating
Expenses - Assumptions
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Phase 1 Phase 2 Phase 3 TotalFrom From From From
M1 M7 M13 M1
To To To To
M6 M12 M24 M24
(6 months) (6 months) (12 months) (24 months)
Income $ $ $ $
Assume OperationalM4
Training Income
Number of students per month 30 60 90Average training fee charged per student per month 800 800 900
Total training fee received for the phase 72,000 288,000 972,000 1,332,000
Food Court Income
Food Stalls
Number of stalls 6 6 10
Average sales proceeds per stall per month 7,200 7,200 7,200Total Food Stalls Sales for the phase 129,600 259,200 864,000 1,252,800Drink Stall
Average sales proceeds per month 10,080 10,080 10,080
Total Drink Stall Sales for the phase 30,240 60,480 120,960 211,680
Catering Income
Average 3 meals per day for 24 days per month 72 72 72
Cost of per meal 1.50 1.50 1.50
Number of person per month 400 400 2,000
Total catering sales for the phase 129,600 259,200 2,592,000 2,980,800
Total Revenue 361,440 866,880 4,548,960 5,777,280
Projected Income and Revenue
Received
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Phase 1 Phase 2 Phase 3 TotalFrom From From From
M1 M7 M13 M1
To To To ToM6 M12 M24 M24
(6 months) (6 months) (12 months) (24 months)
Profit and Loss $ $ $ $
REVENUE 361,440 866,880 4,548,960 5,777,280
COST OF SALES (177,840) (427,968) (2,761,776) (3,367,584)
GROSS PROFIT 183,600 438,912 1,787,184 2,409,696
STAFF COST (135,960) (336,420) (657,405) (1,129,785)
ESSENTIAL OPERATING COST (101,232) (96,232) (184,464) (381,928)
PROFIT/(LOSS) BEFORE DEPRECIATION (53,592) 6,260 945,315 897,983
DEPRECIATION OF FIXED ASSETS (5 YEARS) (47,186) (47,186) (94,371) (188,742)
PROFIT/(LOSS) AFTER DEPRECIATION (100,778) (40,926) 850,944 709,241
FINANCE COST (9,437) (9,437) (18,874) (37,748)
PROFIT/(LOSS) BEFORE TAXATION (110,215) (50,363) 832,070 671,493
TAXATION (18%) 0 0 (149,773) (149,773)
PROFIT AFTER TAXATION (110,215) (50,363) 682,297 521,720
Projected Profit and Loss Statement
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Phase 1 Phase 2 Phase 3 Total
From From From FromM1 M7 M13 M1
To To To To
M6 M12 M24 M24
(6 months) (6 months) (12 months) (24 months)
Cash Flow $ $ $ $
Profit/(Loss) before taxation (110,215) (50,363) 832,070 671,493
Add:
Depreciation of fixed assets 47,186 47,186 94,371 188,742
Finance Cost 9,437 9,437 18,874 37,748
CASH FLOW/(IN USED) FROM OPERATION (53,592) 6,260 945,315 897,983
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of fixed assets (471,855) 0 0 (471,855)
(525,447) 6,260 945,315 426,128
CASH FLOW FROM FINANCING ACTIVITIES
Issurance of share capital 250,000 0 0 250,000
Hire purchase and leasing 377,484 0 0 377,484Repayment of hire purchase and leasing (47,186) (47,186) (94,371) (188,742)
580,299 (47,186) (94,371) 438,742
CASH SURPLUS/(DEFICIT) 54,852 (40,926) 850,944 864,870
CASH BROUGHT FORWARD 0 54,852 13,926 0
CASH CARRIED FORWARD 54,852 13,926 864,870 864,870
Project Cash Flow Plan
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Phase 1 Phase 2 Phase 3
From From From
M1 M7 M13
To To To
M6 M12 M24
(6 months) (6 months) (12 months)
Balance Sheet $ $ $
SHARE CAPITAL 250,000 250,000 250,000
PROFIT AND LOSS (110,215) (160,577) 521,720
Shareholders' equity 139,785 89,423 771,720
FIXED ASSETS 424,670 377,484 283,113
CURRENT ASSETS
Cash and cash equivalents 54,852 13,926 864,870
Total Asset 479,521 391,410 1,147,983
Less:
CURRENT LIABILITIES
Hire purchase creditors 339,736 301,987 226,490
Provision for taxation 0 0 149,773
Government grant 0 0 0
339,736 301,987 376,263
139,785 89,423 771,720
Projected Balance Sheet
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M1 M2 M3 M4 M5 M6 Total
IncomeCapital $250,000 $0 $0 $0 $0 $0 $250,000
Loan $0 $0 $0 $0 $0 $0 $0
Training fee $0 $0 $0 $24,000 $24,000 $24,000 $72,000
Food court revenue $0 $0 $0 $53,280 $53,280 $53,280 $159,840
Catering $0 $0 $0 $43,200 $43,200 $43,200 $129,600
Sponsorship $0 $0 $0 $0 $0 $0 $0Total Income $250,000 $0 $0 $120,480 $120,480 $120,480 $611,440
Expenditure
Cost of sales $0 $0 $0 $59,280 $59,280 $59,280 $177,840
Salary $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $120,000
CPF $2,610 $2,610 $2,610 $2,610 $2,610 $2,610 $15,660
Skill Development Levy $50 $50 $50 $50 $50 $50 $300
Capital expenditure $7,864 $7,864 $7,864 $7,864 $7,864 $7,864 $47,186
Rent $3,622 $3,622 $3,622 $3,622 $3,622 $3,622 $21,732
Utilities $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $28,800
Telecommunication $450 $450 $450 $450 $450 $450 $2,700
Maintenance & Upkeep $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $21,000
Downpayment $94,371 $0 $0 $0 $0 $0 $94,371
Advertising & Promotion $6,000 $3,000 $6,000 $15,000Miscellaneous $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $12,000
Total Expenditure 145,267 44,896 47,896 104,176 110,176 104,176 556,589
Cash Surplus (Deficit) 104,733 (44,896) (47,896) 16,304 10,304 16,304 54,852
Cash brought forward 0 104,733 59,837 11,940 28,244 38,548
Cash carried forward 104,733 59,837 11,940 28,244 38,548 54,852
Projected Monthly Cash Flow for
Year 1
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M7 M8 M9 M10 M11 M12 Total
IncomeCapital
Loan
Training fee $48,000 $48,000 $48,000 $48,000 $48,000 $48,000 $288,000
Food court revenue $53,280 $53,280 $53,280 $53,280 $53,280 $53,280 $319,680
Catering $43,200 $43,200 $43,200 $43,200 $43,200 $43,200 $259,200
SponsorshipTotal Income $144,480 $144,480 $144,480 $144,480 $144,480 $144,480 $866,880
ExpenditureCost of sales $71,328 $71,328 $71,328 $71,328 $71,328 $71,328 $427,968
Salary $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $300,000
CPF $5,945 $5,945 $5,945 $5,945 $5,945 $5,945 $35,670
Skill Development Levy $125 $125 $125 $125 $125 $125 $750
Capital expenditure $7,864 $7,864 $7,864 $7,864 $7,864 $7,864 $47,186
Rent $3,622 $3,622 $3,622 $3,622 $3,622 $3,622 $21,732
Utilities $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $28,800Telecommunication $450 $450 $450 $450 $450 $450 $2,700
Maintenance & Upkeep $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $21,000
Downpayment $0 $0 $0 $0 $0 $0 $0Advertising & Promotion $4,000 $2,000 $4,000 $10,000
Miscellaneous $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $12,000Total Expenditure $153,634 $149,634 $151,634 $149,634 $153,634 $149,634 $907,806
Cash Surplus (Deficit) ($9,154) ($5,154) ($7,154) ($5,154) ($9,154) ($5,154) ($40,926)
Cash brought forward $54,852 $45,697 $40,543 $33,389 $28,235 $19,080
Cash carried forward $45,697 $40,543 $33,389 $28,235 $19,080 $13,926
Projected Monthly Cash Flow for
Year 1
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Common Mistakes in Business Plan
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Some of the common mistakes business owners make when completing their businessplans :
Mistake 1: Incomplete financialsThis is perhaps the most important section of any business plan. Lenders want to know whenthey will have their loans repaid and assess the risk. You need to produce financial statementsthat accountants will endorse without question.
Mistake 2: Over ambitious projectionsEveryone thinks their business will grow exponentially in the first 12 months but in reality this israrely the case. Your business plan must show a realistic path to profitability that proves youractual revenues and profits are comparable with your written plan.
Mistake 3: Leaving something outEvery business plan follows a certain structure. Lenders and professional readers generallylook for 3 or 4 aspects of your plan. You need to ensure you have these elements correctlywritten in the right area of your business plan.
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Common Mistakes in Business Plan
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Here are some of the common mistakes business owners make when completing theirbusiness plans :
Mistake 4: Incorrect formatYour readers do not expect a 100 page novel nor a 1 page overview. Getting this fundamentalarea wrong will show your readers just how inexperienced you are.
Mistake 5: Poor understanding of marketingCommunicating your products to your prospects is a critical success factor for every businessowner. You need to show you understand your target customers, what their needs are, whythey will buy from you and how you will communicate with them.
Mistake 6: An inability to sell your planHaving an accountant prepare your plan may save you a headache, but it is you who needs toexplain to your lender or investors every question they have about your plan. You need tounderstand everything that is written in your plan.
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Approach to Strategic Planning
Presentation
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Mission
&Objective
Setting
Pre-assessment
Workshop
Internal
Assessment
External
Assessment
SWOTReport StrategyWorkshop ActionPlanning ProcessRe-alignment
DIAGNOSTIC STRATEGY FORMULATION STRATEGIC
ALIGNMENT
Participants
Top Management
Stakeholders
Middle Management Staff
Suppliers
Customers
Top
Management
Middle
Management
Top Management
Middle
Management
Stakeholders
Middle
Management
Middle
Management
Deliverables
Project
Expectations
Customer Surveys
Climate Surveys
SWOT Report
Companys
Mission
Core Competence
Critical Success
Factor
Strategic Option Action PlansProcess Re-alignmentSales & Marketing
Procurement & Warehousing
Human Resources
Financial
Management Information
APPROACHTOSTRATEGIC PLANNING
C
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cyServices
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Objectives
Strategy
Action Plan
Mission
How to Statement
Why and What Statement
APPROACHTOSTRATEGIC PLANNING
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The Business Assessment
Internal
Functional aspects:
Sales/Marketing
ProductionInventory
Delivery
Finance
Human Resource
Business Processes
Infrastructures
Corporate Structure
Organisation Structure
Systems
External
Customers
current, future needs and
expectationshow they perceive your
services?
how they compare you with
your competitors?
Competitors
what areas and why do they
do better than you?
what is their industry outlook?
how do they see current,
future customer needs and
expectations?
Industry Prospects
Analyse:
Weakness/Bottlenecks
Market Threats
Critical Success Factors
Strengths
Market Opportunities
Core Competence
APPROACHTOSTRATEGIC PLANNING
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S W
O
T
Core Competence
Strategy Options
Critical Success Factors
SWOT Analysis
APPROACHTOSTRATEGIC PLANNING
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APPROACHTOSTRATEGIC PLANNING
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ManagementCommitment
EmployeeOwnership
Mission
Objectives
Strategy
Warehousing&Logistics
HumanResource
Manufactur
ing
Financial&
Accounting
Purchasing
Manageme
ntInformation
Strategic Alignment
APPROACHTOSTRATEGIC PLANNING
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School Holiday
Mission
Objective
Strategy
StrategicAlignment
= to have a good holiday time
= to go to Desasu
= to drive to Desaru
PeopleLogisticsMoney
APPROACHTOSTRATEGIC PLANNING
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Action Planning Date:
Goals Prepared By :
Action Plan 2008
Main task Sub-task Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec By Whom Remark
Action planning
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Value
Customer
Industry Application
Demographic
Geographical
Chrisben Axis of Strategic Directions
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Corporate Vision
To beSouth East Asias foremost distr ibutorofqualitybolts and
nuts.
To establish overseas presence in 4 countries by 2010
Vietnam
Thailand
Indonesia
Brunei
T o have four additional strategic outlets
In Malaysia by 2010
Sabah
Sarawak
Penang
Johor
To achieve national business recognition award by 2010;
To publicly list the company by 2012
To have a fully automated logistic
hub by 2010.
To attain ISO 9000:2000 certification by year 2008.
EXAMPLEOFSTRATEGIC PLANNING
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Value
Customer
Industry Application
Global
Sales Points
Regional
Sales Points
S.E.A
East Malaysia
Europe
Middle East
R & D
Manufacturing
Value adding
Engineering ConsultationDiversification
Supply Chain Management
Trading
Strategic Overview
Example of Strategic Planning
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To construct newIntegrated logistic hub
Increase stock capacity
Reduce order lead time
Q2 2008 Q3 2008 Q4 2008
To set up sales office
In Penang, Johor &
East Malaysia
To attain ISO 9000:2000
certification
To establish sales
Presences in Vietnam, Thailand
Brunei & Indonesia
Q1 2009 Q2 2009 Q3 2009 Q4 2009 2010
MarketCoverage
Year
Integrated logistic hub commence
Operations,
Sales points commence business
in 4 countries,
Additional 4 outlets in Malaysia,
Total of 13 outlets to providewider market coverage
ASEAN FTA 0% Duty &
Tax by 2010
Example of Strategic Planning
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Action Planning 200X Team Johor Date: 7th July
Goals Increase sales revenue by 10% Prepared By : Steven
Action Plan 2007
Main task Sub-task Jul Aug Sep Oct Nov Dec By Whom Remark
A. Widen product range 1. Source one new product - Torx screw X Team
2. Find suppliers X X Michael
3. Requisition for sample X Steven
4. Product training for staff X Team Steven to liaise with supplier
5. Market new product X X X Michael
6. Review of sales result X Micheal / CG
B. Increase no. of customers 1. Target new sales area - Pasir Gudang X Micheal / Cheah
(Target 20 new customers) 2. List potential customers and contacts X Steven
3. Train sales staff X X Micheal / Cheah
4. Make sales calls and visit X X X X X Team One new custumer visit per week5. Review of sales performance X X Cheah
C.Sales promotion of old stock 1.List of old stock X Steven Non moving stock over 2 years old
2. Review pricing of old stock X Micheal / Cheah
3. Approval for sales of old stock X Mr. Lee / CG
4. List target customers for old stock X Steven
5. Contact target customers and sell X X X X X X Team
6. Review of sales performance X X Micheal / Cheah
Example of ACTION PLAN
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Case Study #4
NetFoodasia
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Interaction:I as the Business
Scenario:
Four friends got together in 1998 to develop a portal to assist restaurateurs / chefwith their purchasing operation.
One of the founder, a chef by professional realize that he needs to prepare andsent out purchase orders every night to his suppliers, a process that take morethan an hour per night. There is need to simplified this process hence Netfoodasiawas born.
Raise S$280,000 to develop a Internet B2BFood Portal business
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Phase 1Informational
Phase 2Transactional
Viewers
Food and Beverage industries members of the public governmental bodies suppliers (equipment / service providers) students (current / potential) Association (local / oversea)
Revenue Model
Advertising
Banners
e-Shop
Membership
Subscription
Consultancy /Brokerage /Data Mining
Fee Payment
InformationJob Opportunities
Student PlacementEvents / Activities
Forum
SearchNews
New Development
Criteria for Phase 2 Revenue generating Dynamic High eyeballs Platform for the F & B industries
Criteria for Phase 1 on-time information attractive appearance interactive nature interesting/relevant content fast access
Our E-Portal Proposal
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Guan Xi and Networking
Discussion
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Guan Xi
Discussion
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Guan Xi
network
Colleges
Affiliation/ Clans
InterestGroups
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Guan Xi
3-4 hoursuninterrupted
activities
Undividedattention
Preferablyenjoyable
Successful Networking
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Values
Support
TrustValues
Support
Trust
Maintenance of the Guan XiA relationship is based on three critical foundation Shared Values Mutual trust Support Financial, Physical, Emotional
A goodrelationship is like
an equilateraltriangle
But sometime therelationship is like
an isoscelestriangle
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Values
Support
Trust
Closing = (time ; event)
Maintenance of the Guan Xi
When the triangle is broken
Closing the triangle will require timeand events
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Maintenance of the Guan Xi Useful Tips1. Maintain contacts
a. Phone call I saw you at.
b. Email Can I have your autograph.
c. SMS Birthday Greetings
2. Maintain professionalisma. Never bad mouth anyone
b. Watch what you said to anyone, the world is a small place.
c. Never talk in a lift, you never know who is listeningd. Said what is good, may not be right
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Maintenance of the Guan Xi Useful Tips
3. Maintain recordsa. Get personal details Where last met, What was spoken, Number of
children etc
b. Update your Database regularly
4. Maintain statusa. Never be out of your circle of contacts and lost you
b. Constantly work on widening your contacts and find new Guan Xi
(relationship)
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Business Entertainment
Discussion
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Business Entertainment
Objective What you want to get out of it?
Whats the budget?
Who you are entertaining?
Status - Theirs and Yours
Type of Industry
With or without family
Time allocated
Day or Night
Duration
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B i E t t i t
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Business Entertainment
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Time of the Day Location Cost
Daytime
Golf JohorSingapore
S$40 per gameS$100 per game
Yachting / Fishing Southern Islands Half day - $800 for a 30 footerLuxury 100 footer about $10,000 includingmeal
Spa Hotel and Clubs $200 per person per session
Night
Dinner
Casual Seafood restaurant $25 to $40 per person excl Liqueur
Fine Les Mis From $80 onwards
After Dinner
Clubbing St James / Mohammad Sultan / Clarke Quay $30 - $200 per person per night out
Massage Parlour Clean & Special Foot reflexology $40 per hourFull Body $60 - $100per one hour
Karaoke High Class to Geyland Area Hourly Rate - $50 to $300 per sittingButterfly - $20- $50Liqueur - $300 to $800 per bottlesTime Booking - $200 to $300
Chickens and Ducks Call Girls and Pickups From $50 to $2000 excluding rooms
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The Coffee Stall Business
Interaction
Th C ff St ll B i
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The Coffee Stall Business
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Coffee / Tea
Soft DrinksFruit JuiceSugarcaneBeerCigarettesTit bits
Cut fruitsSandwichesPopiahRojak
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Background Reading
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Background Reading
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Confidence by Rosabeth Moss Kanter
Enterprise & Small Business by Michael Schaper & Thierry Volery
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AssignmentI the Investor - Part 1
Part 1 Submission1 A4 sheet
Invest or Not?Why did you
invest?
Do not open the newspaper prior to submission
Submit hard copy and soft copy to Administrator
Session 6 Thursday Midnight latest
Late submission will not be entertained
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Questions & AnswersMy email address: [email protected]