BUSINESS PLAN FOR ENGINEERING PROJECT GUIDELINES

CONTENTS GUIDELINE

Executive Summary
This is an overview of your business and your plans. It introduces your company, explain
what you do, and lays out what you’re looking for from readers. Typically one of the main
goals of the business plan is to convince banks, angel investors, or venture capitalists to
invest in your business by providing start-up capital in the form of debt or equity financing.
In order to do so you will have to provide a solid case for your business idea which makes
your executive summary all the more important.
A typical executive summary for a start-up company includes the following sections:
- The business opportunity - describe the need or the opportunity.
- Taking advantage of the opportunity - explain how will your business will serve the
market.
- The target market - describe the customer base you will be targeting.
- Business model - describe your products or services and what will make them
appealing to the target market.
- Marketing and sales strategy - briefly outline your plans for marketing your
products/services.
- The competition - describe your competition and your strategy for getting market
share. What is your competitive advantage, e.g. what will you offer to customers
that your competitors cannot?
- Financial analysis - summarize the financial plan including projections for at least
the next three years.
- Owners/Staff - describe the owners and the key staff members and the expertise
they bring to the venture.
- Implementation plan - outline the schedule for taking your business from the
planning stage to opening your doors.

1. Industry, Customer, and Competitor Analysis

1.1. Industry Overview
Industry analysis is important because it allows business owners to estimate how much
profit they can generate from business operations. Business owners also assess the
number of competitors currently selling consumer goods or services in their industry. It
act as a tool that facilitates a company's understanding of its position relative to other
companies that produce similar products or services. Understanding the forces at work
in the overall industry is an important component of effective strategic planning.

An example of simple industry analysis tool is Porter's Five Forces Analysis, it is a very
useful tool for business strategists. It is based on the observation that profit margins vary
between industries, which can be explained by the structure of an industry. The
comparison between Porter’s Five Forces analysis in this part is to analyse the industry
attractiveness. Students should be able to convince the reader of their respective industry
is lucrative enough to pursue their venture plan. The analysis can further be strengthened
with comparison and highlights on the industry average score between the players of the
industry.

1.2. Opportunity Analysis

Based on the analysis on industry attractiveness, student should be able to identify a
lucrative market gap in the industry. Here, student may enlighten the reader of the
potential business venture through valid facts and data such as market size, growth, or
changing trends based on the segment targeted and current performance of the segment.
Comparison of the facts and data will help the reader to understand the significant of the
business plan proposed.

1.3. Competitor Analysis

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 Comparison between at least the top potential competitors through proper competitor
analysis matrix will emphasize how the business will tackle the market they are
targeting. Furthermore, this will also explain how the business proposed by the student
able to utilize their limited resources to maximize their business potential. Student ought
to identify potential competitors in the industry and study each of the competitors
comparatively such as conducting financial data/ratios comparison or product/business
strength and weaknesses.

1.4. Critical Risks

Every new venture faces a number of risks that may threaten its survival. Although the
business plan, to this point, is creating a story of success, readers will identify and
recognize a number of threats. The plan needs to acknowledge these potential risks;
otherwise, investors will believe that the entrepreneur is naıve or untrustworthy and may
possibly withhold investment. How should you present these critical risks without
scaring your investor or other stakeholders? Identify the risk and then state your
contingency plan. Critical risks are critical assumptions—factors that need to happen if
your venture is to succeed as currently planned. The critical assumptions vary from one
company to another, but some common categories are market interest and growth
potential, competitor actions and retaliation, time and cost of development, operating
expenses, and availability and timing of financing.
For instance, for technological company there is potential of outdated technology that
might affect the investment by the company. Limited resources or alternative use of
resources may also become potential risks that may make a dent to the business plan in
the future. Student need to examine the risk attentively to show their ability to critically
assess the business feasibility in the future and prepare necessary action to overcome the
issue.

2. Company Description
2.1. Company Description
Describe the proposed company name, address and commencement date. Then, describe
about the company legal structure. It can either be ‘Sole Proprietorship, Partnership or
Sdn. Bhd.’ company. The students should also highlight the shareholding percentage if
the company will be owned by more than one (1) person. In summary, this subsection
should consist of the followings:
- Proposed company name, address and commencement date
- Legal structure of the company: Sole Proprietorship, Partnership OR Sdn. Bhd.
- Shareholding percentage, if it is more than one (1) partner

2.2. Nature of Business

Describe about the proposed business type/category and the product or service to be
offered to business customer OR end user. It is also recommended to highlight the
company vision and mission.
- Vision – this company/business in five (5) years’ time and more from the
commencement date
- Mission – the main objective/purpose of this business

2.3. Management Team

List down key personnel to be involved in running this start-up company. State their
academic background and previous employment experience, if any. Indicate their
position as well as job description in this company. Outline the company structure in the
organizational chart.

2.4. Company Strategy

Highlight the strategies that will assist in achieving company’s vision and mission. The
strategies can either be expansion, growth or diversification plan of the company.

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3. Marketing Plan
3.1. Overview
Describes your target customers in general and tools used to reach / approach them.
Explain your distribution, promotion planning, and detailed cost involved.

3.2. Customer Analysis

Describe who your targeted customer is. Explain Reasons why they need/ should buy
your product. Elaborate your targeted customer profile to further justify why they own
purchasing power and to clarify their needs towards your products.

3.3. Pricing Strategies

Describe your product pricing structure. Explain reasons on your decision. Present
summary of cost involved in determining your products price. State and elaborate your
pricing strategies and planning for future use, e.g. 1st; 2-3 years; >4 years. (Need to be
synchronised with your financial section)

3.4. Distribution Strategies

Decide where and how to sell your products. . Explain reasons on your decision. Present
summary of cost involved in determining your distribution decision. State and elaborate
distribution strategies and planning for future use, e.g. 1st; 2-3 years; >4 years. (Need to
be synchronised with your financial section)

3.5. Marketing Communications

Describe how to deliver information to your targeted customer by selecting proper
marketing channels. Explain reasons on your decision. Present summary of cost
involved in determining your marketing communication decision. . State and elaborate
marketing strategies and planning for future use, e.g. 1st; 2-3 years; >4 years. (Need to
be synchronised with your financial section)

3.6. Sales and Marketing Forecast

Explain your projected number of customer for three consequences period; 1st year, 2-3
years and >4 years. State your sales forecast for three consequences period. Present
summary of pricing, distribution and marketing communication cost and strategies for
three consequences period. (Need to be synchronised with your financial section)

Example
1st year 2-3 years >4 years
New Customer
Sales Forecast
Pricing
Distribution
Communication

4. Operations
4.1. Overview
In this section, students should be able to explaining the operational activities of the
business such as process of production, location, supplier, inventory, equipment and
tools, manpower and surrounding environment in operations.

4.2. Production Process

Explain the key processes in producing the products. Should include production
techniques, quality control and coordination of required materials in producing final
products. Students can use the flow chart or process chart to explain in detail the key
processes.

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 4.3. Materials Requirements
List of materials requires for each of the processes describe in 4.2and its suppliers. The
list must also include price or cost of the materials and requirement in producing 1 unit
of final product. Must also explain the requirement of materials in order to produce in
one month or one year as part of materials cost and must reflect to the sales forecast.

4.4. Machines and Equipment

List down the machines and equipment used in the production process and the suppliers
of these machines and equipment with the prices. Need to determine the number of
machines and equipment required to fulfill the forecasted production.

4.5. Workforce Requirements

List of workforce required in producing the final product. Explain the task or
responsibilities for each worker and must be in accordance the production process. List
down the wages paid, KWSP, PERKESO and others. Number of workforce will
influence the operations time for productions.

4.6. Layout of operations

Explain the layout requirements of the operations space. Draw the sections to show the
main activities in the business.

4.7. Location
Explain where the business will be operated. The status of the building whether rental or
own, renovations cost and other costs involved.

4.8. Operation Cost

The amount of operational expanses monthly or yearly. Need to identify Unit cost of the
final product in order to determine the price.

5. Product Design and Development Plan

5.1. Product Overview
This section can be used to generally describe your product and its purpose, current
pricing structure, current distribution channels, positioning within the market, current
promotions and advertising, and current packaging.

5.2. Product Design and Development

The purpose of this section is to provide a description of the product's design, chart its
development within the context of production, marketing, and the company itself, and
create a development budget that will enable the company to reach its goals. The
product design and development timeline should be presented in this section as well.

5.3. Product Features and Characteristics

You may details out the product/services features in this section. Includes a comparison
of the products or services your competitors offer in relation to yours.

5.4. Growth Plan

Describe the future products or service you plan to offer.

6. Financial Plan
6.1. Introduction
This section represents of conservative, achievable and management projections of
revenue, cost, expenses and cash flow. For convenience, you are suggested to use the
sample financial template given to you. The purpose of writing this business plan is to
apply loan from financial institutions or banks.

6.2. Projected profit & loss

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 This section should include sales revenue (RM), sales volume, selling price of a product,
how do you mark-up the selling price from the cost.

6.2.1. Cost of sales

This section should detail out the cost of product/cost per unit, and other related costs
such direct material, direct labour and manufacturing overhead cost. The average cost of
sales will be certain percentage of sales revenue. Cost of sales is estimated based on
manufactured units.

6.2.2. Expenses
Expenses for company are centred on three main areas which are sales and marketing
area, general administration expenses area and research and development (R&D) area.
This section should include the other cost of overhead, wages/ personnel cost, revenue
expenditures, capital expenditures. Other expenses includes legal expenses, insurance,
which might be based on industry average.

6.3. Capital Financing

This section should include the use of fund and source of fund for your business
proposal.Plan out on how the business is using the funds. Show the major areas where
the investor’s funds will be spent. These could include marketing, R&D, sales or
perhaps purchasing inventory.

6.4. Projected Statement of Comprehensive Income (SOCI)

Previously, Statement of Comprehensive Income is known as Income Statement. This
section should lay out three (3) year of SOCI, net profit.

6.5. Projected Statement of Financial Position (SFP)

Previously, Statement of Financial Position is known as Balance Sheet. This section
should lay out three (3) years of SFP. This section should detail out the following:
i.) Assets
ii.) Liabilities
iii.) Owner’s equity/capital

6.6. Projected Cash Flows

This section should include three (3) years of projected cash flows of business.

References
Appendix Business Model Canvas
Other Appendixes (if any)
OTHER GUIDELINES

Number of words (excluding appendixes)

Minimum: 10,000 words
Maximum: 35,000 words

Printing
All copies must be clean and legible.
Use 80gsm paper, A4 size (210 x 297mm) white paper.
One sided printing.

Cover
The cover must contain the following:
- Full thesis title
- Your full name
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 - School and University name
- Year of submission
Please refer to appendix 1 for a sample.

Binding
Students must prepare thehardcover binding in ‘BLUE BLACK’ colour for degree
dissertation purposes as follow:
1 copy – School (compulsory)
1 copy – SV (if required by the SV)
1 copy – Your own copy (recommended)

Typing format
- Font: Times New Roman
- Font size: 12
- All narratives, tables, and graphs must be typeset and NOT handwritten.

Spacing
- Double spacing for text
- Single spacing for long tables, table titles, long quotations, notes, footnotes,
multiline caption and bibliographic entries

Margins
All text, tables, figures and their captions must conform to the following margins:
- Top edge : 2.5 cm
- Bottom edge : 2.5 cm
- Right side : 2.5 cm
- Left side : 4.0 cm

Subdivision
- Text in each chapter may be divided under headings and sub headings such as 1.1,
1.2, 1.3 etc. and 1.1.1, 1.1.2 etc.
- All subdivisions begin from the left margin.

Notes and Footnotes

- Font sizes for notes and footnotes must be smaller than general text
- Footnotes are not encouraged; and should be kept to a minimum.

Tables
- All tables must be numbered in relation to chapter, e.g. in chapter 1, tables should
be numbered table 1.1, table 1.2 and so on.
- Place tables near to related discussion in text.
- Use single space for all tables.

Language

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Please write your text in good English (American or British usage is accepted, but not a
mixture of both).

References
Responsibility for the accuracy of bibliographic citations lies entirely with the authors.

Citations in the text

Please ensure that every reference cited in the text is also present in the reference list (and
vice versa). Avoid citation in the abstract. Unpublished results and personal communications
should not be in the reference list, but may be mentioned in the text.

Citing and listing of web references

As a minimum, the full URL should be given. Any further information, if known (author
names, dates, reference to a source publication, etc.), should also be given. Web references
can be listed separately (e.g., after the reference list) under a different heading if desired, or
can be included in the reference list.

Text
Citations in the text should follow the referencing style used by the American Psychological
Association. You can refer to the Publication Manual of the American Psychological
Association, Fifth Edition, ISBN 1-55798-790-4, copies of which may be ordered from
http://www.apa.org/books/4200061.html or APA Order Dept., P.O.B. 2710, Hyattsville, MD
20784, USA or APA, 3 Henrietta Street, London, WC3E 8LU, UK. Details concerning this
Referencing style can also be found at
http://humanities.byu.edu/linguistics/Henrichsen/APA/APA01.html.

List: References should be arranged first alphabetically and then further sorted
chronologically if necessary. More than one reference from the same author(s) in the same
year must be identified by the letters "a", "b", "c", etc., placed after the year of publication.

Examples:
Reference to a journal publication:
McGuiness, P. 1992, An Examination of the Underpricing of Initial Public Offerings in
Hong Kong: 1980-1990, Journal of Business Finance and Accounting 19(2),
January, pp. 165-186.

Reference to a book:
Strunk, W., Jr., & White, E. B. (1979). The elements of style. (3rd ed.). New York:
Macmillan, (Chapter 4).

Reference to a chapter in an edited book:

Mettam, G. R., & Adams, L. B. (1994). How to prepare an electronic version of your article.
In B. S. Jones, & R. Z. Smith (Eds.), Introduction to the electronic age (pp. 281-
304). New York: E-Publishing Inc.

Reference to a web source:

Smith, Joe, (1999), One of Volvo's core values. [Online] Available:
http://www.volvo.com/environment/index.htm (July 7, 1999)
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