- The nature of the assignment.
You are required to prepare a business plan for a small business in a sector of your choice. The business plan should not exceed 1500 words, excluding financial forecasts, calculations, tables, diagrams, data, appendices and references. The final word count must be mentioned in the front page of Assignment Attachment Sheet. Please ensure that you comply with the standard definition of a small business in Malaysia.
To start, assume that you have RM100,000 in your saving. You plan to use the money to start a small business. Your bank is willing to lend you a further amount (up to RM200,000) based on your business plan, to be repaid over a ten-year period. You may borrow the amount that you need from any bank that operates in Malaysia. Your interest rate, if you elect to borrow from a bank, will be the official published rate. Therefore, you are advised to choose a bank that best suits your business plan. You may also consider additional funding from the Malaysia SME Corporations or any other governmental funds depending on the nature of your business and your eligibility.
In your business you must include the following:
1) An explanation of your business, the nature of the industry, as well as why and how
your business will be successful. (6 marks)
2) The legal structure of your proposed business, including the key person(s) involved in
the running of your business. (6 marks)

2 3) The cost of the product or service to be offered to customers, including the mark-up or
profit margin.
4) Produce a marketing plan that includes the following:
a. Products/services you propose to offer
b. Pricing policy you will adopt with justification
c. Impact of the external environment factors on the pricing strategy
d. Demographic characteristics of potential customers
e. Location where you plan to set up your business
f. Communication methods you will employ to promote the business with a
supporting budget fully detailed for the first year of operations
(6 marks)
(4 marks) (4 marks) (4 marks) (4 marks) (4 marks)
(4 marks)
5) Produce the first year’s proforma profit and loss with appropriate assumptions and justifications. (12 marks)
6) Produce the first year’s proforma balance sheet with appropriate assumptions and justifications. (12 marks)
7) Produce the first year’s proforma cash flow on a monthly basis with appropriate
assumptions and justifications.
8) Assess the viability of the business plan using:
a. The break-even analysis, and
b. Two financial ratios.
9) Identify the strengths and weaknesses of your proposed business.
(12 marks)
(6 marks) (6 marks)
To start with, you must identify a business of your choice and obtain an approval from your lecturer. You will have the opportunity to present your business idea and your progress on your assignment in class. Your presentation will not be graded but you are encouraged to use these opportunities to ensure that you are on track with your work.
