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Making a Risk Management Plan for Your Business
It’s impossible to eliminate all business risk. Therefore, it’s essential for having a plan for its management. You’ll be developing one covering compliance, environmental, financial, operational and reputation risk management. These guidelines are for making a risk management plan for your business.
Developing Your Executive Summary
When you start the risk management plan with an executive summary, you’re breaking apart what it will be compromised of into easy to understand chunks. Even though this summary is the project’s high-level overview, the goal is describing the risk management plan’s approach and scope. In doing so, you’re informing all stakeholders regarding what to expect when they’re reviewing these plans so that they can set their expectations appropriately.
Who Are the Stakeholders and What Potential Problems Need Identifying?
During this phase of making the risk management plan, you’re going to need to have a team meeting. Every member of the team must be vocal regarding what they believe could be potential problems or risks. Stakeholders should also be involved in this meeting as well to help you collect ideas regarding what could become a potential risk. All who are participating should look at past projects, what went wrong, what is going wrong in current projects and what everyone hopes to achieve from what they learned from these experiences. During this session, you’ll be creating a sample risk management plan that begins to outline risk management standards and risk management strategies.
Evaluate the Potential Risks Identified
A myriad of internal and external sources can pose as risks including commercial, management and technical, for example. When you’re identifying what these potential risks are and have your list complete, the next step is organizing it according to importance and likelihood. Categorize each risk according to how it could impact your project. For example, does the risk threaten to throw off timelines or budgets? Using a risk breakdown structure is an effective way to help ensure all potential risks are effectively categorized and considered. Use of this risk management plan template keeps everything organized and paints a clear picture of everything you’re identifying.
Assign Ownership and Create Responses
It’s essential to ensure a team member is overseeing each potential risk. That way, they can jump into action should an issue occur. Those who are assigned a risk, as well as the project manager, should work as a team to develop responses before problems arise. That way, if there are issues, the person overseeing the risk can refer to the response that was predetermined.
Have a System for Monitoring
Having effective risk management companies plans includes having a system for monitoring. It’s not wise to develop a security risk management or compliance risk management plan, for example, without having a system for monitoring. What this means is there’s a system for monitoring in place to ensure risk doesn’t occur until the project is finished. In doing so, you’re ensuring no new risks will potentially surface. If one does, like during the IT risk management process, for example, your team will know how to react.
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Writing a Business Plan
While it may be tempting to put off, creating a business plan is an essential part of starting your own business. Plans and proposals should be put in a clear format making it easy for potential investors to understand. Because every company has a different goal and product or service to offer, there are business plan templates readily available to help you get on the right track. Many of these templates can be adapted for any company. In general, a business plan writing guide will recommend that the following sections be incorporated into your plan.
The executive summary is the first section that business plans open with, but is often the last section to actually be written as it’s the most difficult to write. The executive summary is a summary of the overall plan that highlights the key points and gives the reader an idea of what lies ahead in the document. It should include areas such as the business opportunity, target market, marketing and sales strategy, competition, the summary of the financial plan, staff members and a summary of how the plan will be implemented. This section needs to be extremely clear, concise and engaging as you don’t want the reader to push your hard work aside.
The company description follows the executive summary and should cover all the details about the company itself. For example, if you are writing a business plan for an internet café, you would want to include the name of the company, where the café would be located, who the main team members involved are and why, how large the company is, who the target market for the internet cafe is, what type of business structure the café is, such as LLC, sole proprietorship, partnership, or corporation, what the internet café business mission and vision statements are, and what the business’s short-term objectives are.
Services and Products
This is the exciting part of the plan where you get to explain what new and improved services or products you are offering. On top of describing the product or service itself, include in the plan what is currently in the market in this area, what problems there are in this area and how your product is the solution. For example, in a business plan for a food truck, perhaps there are numerous other food trucks in the area, but they are all fast –food style and unhealthy so, you want to introduce fast food that serves only organic and fresh ingredients every day. This is where you can also list your price points and future products or services you anticipate.
The market analysis section will take time to write and research as a lot of effort and research need to go into it. Here is where you have the opportunity to describe what trends are showing up, what the growth rate in this sector looks like, what the current size of this industry is and who your target audience is. A cleaning business plan, for example, may include how this sector has been growing by 10% every year due to an increase in large businesses being built in the city.
Organization and Management
Marketing and sales are the part of the business plan where you explain how you will attract and retain clients. How are you reaching your target customers and what incentives do you offer that will keep them coming back? For a dry cleaner business plan, perhaps if they refer customers, they will get 10% off their next visit. In addition, you may want to explain what needs to be done in order for the business to be profitable. This is a great way of showing that you are conscious about what clear steps need to be taken to make a business successful.
Financial Projections & Appendix
The financial business plan section can be a tricky one to write as it is based on projections. Usually what is included is the short-term projection, which is a year broken down by month and should include start-up permits, equipment, and licenses that are required. This is followed by a three-year projection broken down by year and many often write a five-year projection, but this does not need to be included in the business plan.
The appendix is the last section and contains all the supporting documents and/or required material. This often includes resumes of those involved in the company, letters of reference, product pictures and credit histories. Keep in mind that your business plan is always in development and should be adjusted regularly as your business grows and changes.
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ENT300 - Business Plan Report : Platanos Enterprise (2014)
Platanos Enterprise will be establish on the early year of 2018 as to provide our best services towards people especially people in Simpang Renggam and Kluang city at Kluang, Johor which known due to highly demand in population around. We also wanted to help our Malay people in that area as we sold the bananas cheaper than our competitor. We are offering product that are produce from the fresh bananas farm, which will give our customer the best taste and quality of bananas. This business was founded and managed by five partners and determined to give a great opportunity to public to supply our product in order to conquer our market. Therefore we will able to establish our business and trying to get an opportunity to expand our business.
This paper presents the structures of the global banana trade management and the role of the multinational companies in shaping the global banana market policies. The paper presents the concentration of production and consumption of the bananas worldwide and analyses the various import policies of the major EU member countries prior to the entry in force in 1993 of the Common Market Organization for Bananas (CMOB). It introduces the subsequent agreements reached between by the EU, US and Latin American countries that led to the implementation of the Tariff-only Policy of the EU banana import regime. The paper assesses the recent policy development, the changing role of the multinational companies in global banana trade, and concludes with the industry outlook and the new role of the retail supermarket chains in international banana trade.
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ENT 300 Business plan Flores Virent
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FUNDAMENTALS OF ENTREPRENEURSHIP (ENT) UITM
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- 1. ENT 300 FUNDAMENTALS OF ENTREPRENEURSHIP GROUP MEMBERS SHADINA SHAH CLASS MBM 111 5B DATE OF SUBMISSION 4TH DECEMBER 2017 NAME OF LECTURER PROF MADYA SHAHARIAH BT OSMAN
- 2. 2 ACKNOWLEDGEMENT Praise is to Allah for His help and guidance that we finally able to complete this project according to schedule. Many obstacles and difficulties we had to face in preparing this business plan. First and foremost we would like to extend our sincerest gratitude to Prof Madya Shahariah Bt Osman, lecturer of Fundamentals of Entrepreneurship for his willingness in overseeing the progress of our assignments from its initial phases till the completion of it. Your invaluable support and patience throughout this journey has been unreal. To our beloved parents and family who had given us a lot of moral support as well as financial support, thank you so much. For all the group members, thank you for believing us whether through our stormy weathers. The experience and knowledge we gained throughout the process of completing this project would prove invaluable to better equip us for the challenges which lie ahead. I also like to express my thanks and appreciation to all the individuals who involved directly or not directly in helping us giving cooperation and information that we needed along the way completing this business plan. Thank You.
- 3. 3 TABLE OF CONTENTS ITEM PAGE A. Cover Letter 6 B. Executive Summary 7 C. Partnership of Agreement 8 1.0 Introduction 11 1.1 Name of business 12 1.2 Nature of business 12 1.3 Industry profile 12 1.4 Location of the business 12 1.5 Date of commencement 12 1.6 Factors in selecting the proposed venture 13 1.7 Future prospects of the business 13 2.0 Purpose Of Preparing The Business Plan 14 3.0 Business / Company Background 14 3.1 Nature of business 14 3.2 Address (business and correspondence) 14 3.3 Telephone number 14 3.4 Form of business 14 3.5 Main business activity 14 3.6 Date of commencement 14 3.7 Date of registration and registration number 14 3.8 Name of bank and account number 14 4.0 Background Of Owner 4.1 Personal particulars of owner 1 15 4.2 Personal particulars of owner 2 16 4.3 Personal particulars of owner 3 17 5.0 Background Of Proposed Project 5.1 Physical location 18 5.2 Price of premise 19
- 4. 4 5.3 Distance from source of raw material 19 5.4 Availability of manpower 19 5.5 Transportation facilities 19 5.6 Distance from customers 19 5.7 Basic amenities 19 6.0 Marketing Plan 20 6.1 Product or service description 21 6.2 Target market 22 6.3 Market size 23 6.4 Competition 24 6.5 Market share 25 6.6 Sales forecast 27 6.7 Marketing strategy & budget 28 7.0 Operation Plan 32 7.1 Operational objective 33 7.2 Process planning 34 7.3 Operations layout 35 7.4 Production planning 37 7.5 Material planning 38 7.6 Machines and equipment planning 39 7.7 Manpower planning 39 7.8 Overhead requirement 40 7.9 Location 40 7.10 Business and operations hours 41 7.11 License, permits and regulations required 41 7.12 Operations budget 43 7.13 Implementation schedule 44 8.0 Organizational Plan 45 8.1 Organization vision and mission 46 8.2 Organization chart 47
- 5. 5 8.3 Manpower planning 48 8.4 Schedules of task and responsibilities 48 8.5 Operation Layout 52 8.6 Schedule of remuneration 53 8.7 List of office equipment 55 8.8 List of furniture, fixture and fittings 56 8.9 Pre-operational budget 56 8.10 Utilities expenses 57 8.11 Administration Budget 58 9.0 Financial Plan 60 9.1 Project implementation cost and source of financing 61 9.2 Pro forma cash flow statement 62 9.3 Pro forma income statement 63 9.4 Pro forma balance sheet 64 9.5 Start-up summary 65 9.6 Financial report 66 9.7 Financial analysis 68 10.0 Conclusion 73 11.0 Appendices 75
- 6. 6 A. COVER LETTER BUSINESS PLAN 6TH OCTOBER 2017 FLORES VIRENT ENTERPRISE Jalan KJ 3 78300 Kuala Sungai Baru, Melaka. Tel:
- 7. 7 B. EXECUTIVE SUMMARY Flores Virent wants to introduce to people about indoor plantation. It is an urban florist that connects people to the world of plants, fostering delight and curiosity while inspiring an appreciation and sense of stewardship of the environment. In the garden, in its community and well beyond, Flores Virent inspires people of all ages through the conservation, display and enjoyment of plants; with educational programs that emphasize learning by doing; and with research focused on understanding and conserving regional plants and plant communities. We believe that people nowadays need some refreshment and relaxing life because the majority of them are working in an office or organization that had enough time to relax. We hope that we can encourage people would love to plant and more aware about nature. This may also reduce the burden of working in the office for hours while smell the fragrance of the flowers. Besides that, it is to promote environmental awareness and sustainability practices to be shared and applied across different layers of society. Flores Virent is located at Jalan KJ 3 78200 Kuala Sungai Baru, Melaka, a prime location for any type of business. The location is strategic because it is at the center of a housing area. After through considerations, we determines it is the ideal place for the shop to be open. A good neighborhood ensures stable operating revenue, since convenience is one of the key factors in floral industry. Customers value shops within close proximity. Flores Virent Enterprise will operate six days a week that headed by manager Shadina Asyiqin Bt Norhasrin Shah with her partners Fatin Ashila Bt Azmi and Nurul Najihah Bt Abu. The company will have three workers which is cashier, inventory (who managed the order) and packaging (pack the items). This document will demonstrate the need for a business such as in Kuala Sungai Baru and its chances for success. It will serve as road map that will set the course for further planning and for the implementation process. Anticipated sales are RM 824 890.50 for the first year, RM 907 379.55 for second year and RM 998 117.505 for the third year. This is based on the history of sales of our competitors. Our pricing strategy will be based on the objectives to get reasonable profit and to ensure customers continue doing business with us in the future. Emphasis will be placed on friendly service that will not only meet, but exceed customers’ satisfaction.
- 8. 8 C. PARTNERSHIP AGREEMENT All of partners are free to sign this partnership agreement on 7th October 2017. The function of this partnership agreement is to avoid any fraudulent and deception that might be happen during the operation of business and ensure business run efficiently and effectively. Below are the partners of the Flores Virent Enterprise: 1. Shadina Asyiqin Bt Norhasrin Shah 971208-10-6288 2. Fatin Ashila Bt Azmi 970924-10-6516 3. Nurul Najihah Bt Abu 970110-04-5744 We all are the strength under one roof of Flores Virent Enterprise. We will strive to bring our product to the customer and market it nationally and internationally in the future. We are all come with the mutual agreement in relation to the sharing of information, openness, trust and decision making involvement which lead to the successful of our company Flores Virent Enterprise. We are agreed to work together and strive till the end in gaining the target profit and achieving our mission and vision. This agreement is a symbol of our continued partnership and we will work with each other in good faith and having a close relationship with one another in ensuring the successful of our company. 1) Company’s Name Three partners under Partnership Act Registered 1961 (Amendment 1974) established Flores Virent Enterprise. 2) Business Form Our business operation and administration will base on the Business Registration Act 1956 (revised 1978) and our business carry on the partnership. 3) Business Location Our premise is located at Jalan KJ 3 78200 Kuala Sungai Baru, Melaka. The reason why we choose this location because it is at the center of a housing area. We have decided to establish the florist’s business due to opportunity and potential to make profits at the Kuala Sungai Baru area.
- 9. 9 4) The business will start Our business will start on 1st January 2018. This business will not be dissolve if one partner is death but it will dissolve if all partners are agreed to dissolve it. 5) Partners position Name Position a) Shadina Asyiqin Bt Norhasrin Shah General Manager / Administration / Financial Manager b) Fatin Ashila Bt Azmi Marketing Manager c) Nurul Najihah Bt Abu Operation Manager 6) Profit and lost sharing is based on the capital contributions of partners. 7) Management of salaries Name RM a) Shadina Asyiqin Bt Norhasrin Shah 1 800.00 b) Fatin Ashila Bt Azmi 1 500.00 c) Nurul Najihah Bt Abu 1 500.00 8) Death and dissolve This partnership will continue operate in the future even partners is dead, until all agree to dissolve it. 9) Labor right Each partner is entitled to take 16 days leave per year. 10) All partners have to work hard, build up trust and honesty in their own self, all information should be informed to the other partners and all partners should keep secret and policy of company.
- 10. 10 11) All partners should help each other’s in ensuring the successful of business in the future. 12) This agreement is valid for 10 years starting from the date of this agreement. General Manager / Administration / Financial Manager Marketing Manager Operation Manager
- 11. 11 INTRODUCTION
- 12. 12 INTRODUCTION 1.1 Name of Business Flores Virent Enterprise 1.2 Nature of Business Our company is offering an indoor flower plantation to the market. Our business concept is selling the seeds of variety of flowers from Holland. We provide variety of flowers’ seeds such as Mini Lotus, Calla Lily, Hyacinth, Tulip, Water lily, Daffodil, Saffron and many more depending to the season in their homeland. Once the flowers bloom, it will release the fresh smell of fragrance. 1.3 Industry Profile Flores Virent Enterprise is about guiding people in indoor flower plantation and interior decoration. Indoor flower plantation could act as the main mechanism of relaxation and stress reduction specifically for the working people. We believe that people nowadays need some refreshment and relaxing life because most of them are working in an office or organization that had not enough time to relax. We want to encourage people to love indoor flower planting and more aware about nature. 1.4 Location of Business Flores Virent Enterprise is located at Jalan KJ 3 78300 Kuala Sungai Baru, Melaka. The location is strategic because it is at the center of a housing area where there are schools. 1.5 Date of Commencement 1st January 2018
- 13. 13 1.6 Factors in selecting the proposed venture We have decided to establish the florist’s business due to opportunity and potential to make profits at the Kuala Sungai Baru area. Besides that, there are several reasons that attracted us to this business and its location. There are three reasons why we decided to establish Flores Virent. Firstly, they observed that people are lacks about indoor flower plantation. As such, this is great opportunity for his business to be the only choice of customers. Their business will be the only customers’ option and thus, able to attract many customers. Secondly, there are many working women in this area. Since the objective is to focus on indoor plantation, working women are going to be their target market. This is because the environment in a building is very suitable for the plant to grow. In the meantime, they also want to encourage nowadays community to learn how to plant. Thirdly, the competition among florists in their area is not strong enough. Therefore, the demand for flowers from the Flores Virent will be higher 1.7 Future prospect of the business Once the business is financially stable, we plan to open other branches and expand our business in other housing areas. Besides, we will try to keep the cost lower and minimum as the cost of maintenance (plantation) is high. We also want to improve our marketing strategy by attend and participate in expo (FAMA, MARDI) to give clear information about indoor plantation, do a collaboration with research and development (R&D), advertise our flowers in magazine, newspaper and expand our business internationally. As a conclusion, this business has a good future prospect as many people later would love to plant and give awareness about nature.
- 14. 14 2.0 PURPOSE OF PREPARING BUSINESS PLAN This business purposed is about selling varieties of Holland flowers to Malaysian in a very affordable and reasonable price. Besides, it will encourage people to be more aware about nature and started to plant by them. 3.0 BUSINESS / COMPANY BACKGROUND 3.1 Name of Business : Flores Virent 3.2 Business address : Jalan KJ 3 78300 Kuala Sungai Baru, Melaka Correspondence address : Jalan KJ 3 78300 Kuala Sungai Baru, Melaka 3.3 Telephone number : 3.4 Form of business : Partnership 3.5 Main business activity : Holland florists 3.6 Date of commencement : 1st January 2018 Date of registration : 8 October 2017 3.7 Registration number: : MA0199032-D 3.8 Name of bank : BIMB Bank account number :
- 15. 15 4.0 BACKGROUND OF OWNER 4.1 Personal particulars of owner Name of the owner : Identity card number : Permanent address : Telephone number : E-mail address : Date of birth : Age : Marital status : Academic qualifications :
- 16. 16 4.2 Personal particulars of owner Name of the owner : Identity card number : Permanent address : Telephone number : E-mail address : Date of birth : Age : Marital status : Academic qualifications :
- 17. 17 4.3 Personal particulars of owner Name of the owner : Identity card number : Permanent address : Telephone number : E-mail address : Date of birth : Age : Marital status : Academic qualifications :
- 18. 18 5.0 BACKGROUND OF THE PROPOSED PROJECT 5.1 Physical location Flores Virent is located at Jalan KJ 3 78300 Kuala Sungai Baru, Melaka. Generally, the premise is a shophouse situated in a housing area with many facilities nearby. Figure 1.1 Map of the premise Figure 1.2 Premise of Flores Virent Enterprise
- 19. 19 5.2 Price of premise Expenses for the rent cost about RM1000 per month. 5.3 Distance from the source of raw material We get the raw materials from suppliers through shipping. We get the sources from Holland Netherlands. The supplier always guarantees that the materials are not faulty. 5.4 Availability of man power The business requires skilled workers in terms of promoting and advertising through social network and in terms of packaging the items. 5.5 Transportation facilities Customers can reach our premise by bus and taxi. The location is also convenient for our supplier to deliver the raw materials. 5.6 Distance from customers Our company is located 500 meters from the nearest schools and housing area, which makes it very easy to frequent. Customers can always contact the staff asking for any inquiries, complained, and searching for more details. 5.7 Basic amenities The staff office is completed with water and electricity supplies, internet connection, and telephone connection lines. These basic amenities are provided in order for all workers to perform and accomplish their jobs more efficiently and productively.
- 20. 20 MARKETING PLAN
- 21. 21 6.0 MARKETING PLAN 6.1 Product and service description We will focus on providing high-quality seeds of Holland flowers to consumers with outstanding service and establish good relationship between our clients. Our product is high in quality as we originally bring it from its homeland, Holland, Netherlands. Flores Virent will select and offer distinctive vases for the discretionary buyer as well as affordable options for routine purchases. To create a gallery environment, the Flores Virent store will feature paintings and/or drawings from local artists. Flores Virent will contribute to the experience by offering a pleasant shopping experience through the gallery-like design of its storefront, and its selection of vases and type of flowers. 6.1.1 Technology Technology is, of course, vital to the success of Flores Virent. It is imperative that we stay up-to-date on the latest technological developments in the business industry. In addition, it is important to know the possible equipment/s that can be used for the business. Flores Virent will use sophisticated technology especially for the storing and packaging. As the product is basically a natural product importance will be given on culture and production of quality flowers. Sophisticated technology will also be used in terms of selecting the fertilizers. 6.1.2 Future product and service Flores Virent plans to venture into creating a new fresh flower arrangement services to any establishments as well as provide medicines for plants to avoid pests and any harmful insects to the flowers.
- 22. 22 6.2 Target Market The target market of Flores Virent is comprised of the residents of the housing area in Kuala Sungai Baru, Melaka and workers (sales people, executives, professionals) in the government and private sectors in those area especially women. Based on the statistics, population at Malacca is about 872,900 people and 18% of them are the potential customer in buying flowers and plants. Area that we serves: Kampung Permatang Kampung Ladang Kampung Teluk Belanga Taman Seri Kuala Taman Desa Bayu Taman Seri Gemalan Factories located in the area are Chinaware Kelvin Eng Enterprise, Guan Seng Motor Company, Homewares AFS Berkat Enterprise and Cdo Homemade Bakery & Enterprise. Schools and other institutions located in the area are Melaka International Islamic College of Technology (MIITECH) / (KUIM), Malaysian Maritime Academy (ALAM), SMK Rahmat, SMKA Darul Falah and SMK Lubok China.
- 23. 23 6.3 Market size Based on the statistics, population at Malacca is about 872,900 people and 18% of them are the potential customer in buying flowers and plants. Total Market Size: 872,900 people × 18% = 157,122 people (potential customers) Market size × Average price (1 set) = 157,122 × RM35 = RM 5,499,270
- 24. 24 6.4 Competition It is very important for Flores Virent to identify our competitors. Competitors refer to other businesses that offer similar product or service. Based on our market survey done this year, we found a few competitors for our business, which are open in the city of Malacca. Table 6.1 Competitors’ strengths and weakness Competitor Product Strength Weakness Iman Amanda Shoppe (Holland Florist) 23-1, Jalan Inang 2, Taman Paya Rumput Utama, Melaka. Holland fresh flowers 100% online business Easier for customer to buy anywhere, anytime. Cheap in price No face to face service Lack in delivering management . Paradise Flower House 331, Jalan Ong Kim Wee, Taman Angkasa Nuri, 75300 Melaka. Flowers and chocolate Varieties bouquet of flowers arrangement. Quite expensive price Voe Florist 574, Jalan Merdeka, Taman Melaka Raya, 75000 Melaka. Flowers and chocolate Specialist in artificial flowers Provide additional gifts. High quality Quite expensive price
- 25. 25 6.5 Market share The target market for this business is formed mainly by working adult especially women. We are not able to identify the actual market share for our business as the data is ambiguous. The market size for flowers at Malacca area is about RM 5,499 270 per year. Our company target is to enter about 15% of the market share in Malacca area for starting. The estimated market share for 15% is about RM 8 24 890.50. 6.5.1 Market share before entering the market Table 6.2 Market share before the entry of Flores Virent Enterprise NAME SHARE PERCENTAGE VALUE (RM) Iman Amanda Shoppe (Holland Florist) 45% 2,474,671.50 Paradise Flower House 35% 1 924 744.50 Voe Florist 20% 1, 099 854.0 TOTAL 100% RM 5,499 270 Figure 6.1 Pie chart before entering the market Iman Amanda Shopee 45%ParadiseFlower House 35% Voe Florist 20% MARKET SHARE BEFORE THE ENTRY OF FLORES VIRENT ENTERPRISE Iman Amanda Shopee Paradise Flower House
- 26. 26 6.5.2 Market share after entering the market Table 6.3 Market share after the entry of Flores Virent Figure 6.2 Pie chart after entering the market Iman Amanda Shoppe 40% ParadiseFlower House 30% Voe Florist 15% Flores Virent Enterprise 15% MARKET SHARE AFTER THE ENTERING OF FLORES VIRENT ENTERPRISE Iman Amanda Shoppe Paradise Flower House Voe Florist Flores Virent Enterprise NAME SHARE PERCENTAGE VALUE (RM) Iman Amanda Shoppe (Holland Florist) 40% 2,199 708 Paradise Flower House 30% 1, 649 781 Voe Florist 15% 824 890.50 Flores Virent Enterprise 15% 824 890.50 TOTAL 100% RM 5,499 270
- 27. 27 6.6 Sales forecast FLORES VIRENT ENTERPRISE sales forecast is estimated as follows: Table 6.4 Sales forecast for Flores Virent for three consecutive years MONTH SALES FORECAST FOR THREE CONSECUTIVE YEAR (RM) Sales Collection January 68 740.875 February 68 740.875 March 68 740.875 April 68 740.875 May 68 740.875 June 68 740.875 July 68 740.875 August 68 740.875 September 68 740.875 October 68 740.875 November 68 740.875 December 68 740.875 Total for Year 1 RM 824 890.50 Total for Year 2 RM 907 379.55 Total for Year 3 RM 998 117.505
- 28. 28 6.7 Marketing strategy & budget 6.7.1 Product strategy and service strategy Flores Virent Enterprise focuses on providing high-quality products to consumer with outstanding service. Customization of orders and specialization of services will create a competitive advantage. Flores Virent Enterprise is developing the organization by beginning with few employees to reduce costs. All current employees are very highly motivated, resulting in a positive and strong company culture. This culture will carry over to all new trainees, which is a prime objective for the expansion of Flores Virent Enterprise. The first year of service will be the most important, as Flores Virent Enterprise plans to establish strong relations with both suppliers and buyers. These relationships will help us to grow and evolve in this industry. Our product is far better than those of our competitors because we provide varieties and the best seeds of Holland flowers we have from their origin land. 188.8.131.52 Company logo and sticker Figure 6.3 Logo of Flores Virent This is our company logo and stickers that will appear on each of our paper bag. We confident that it will attract the buyers to remembered us by the logo or stickers
- 29. 29 184.108.40.206 Company’s product We provide only the seeds with highly quality guaranteed from Holland, Netherlands. We also provide the mini pot, import flower’s nutrient and some others equipment for nursing the flowers. F i g u 6 Figure 6.4 A set of items that customer will get 6.7.2 Pricing Strategy Flores Virent Enterprise imposed prices affordable for the customers .Being a very new company in this business and that too with a new territory the company does not know about the pricing strategy of the competitors. So, at the initial level the company will go for low pricing strategy. Flores Virent Enterprise sets standard prices for each product line. These prices are not expected to experience significant change over the next two years. 6.7.3 Distribution (location) strategy Our company which is Flores Virent Enterprise located at Jalan KJ 3 78300 Kuala Sungai Baru, Melaka. The location is strategic because it is at the centre of a housing area where there are schools. Technically, we are operating in a busy street and high exposure to potential customers. The place also easy for people to access, and parking is provided. Seeds Pot Nutrient Hydroponic pot Hydroponic rope
- 30. 30 6.7.4 Promotion strategy Our goal is to gain enough visibility from the public and to promote our products and services. Initially the company is not interested in any price promotion activity as the company believes at the initial level it will hamper the brand equity of the company. a) Business card (see appendix) Business card is a great inexpensive marketing tool that we use in our company. It includes our contact and business location to ease the people to contact us for any inquiries. b) Brochure (see appendix) We are providing brochure to the customer who enter our store as to introduce them our varieties of Holland flowers and other information regarding flowers. c) Social Media (see appendix) We also promote our business via Facebook, Twitter, and Instagram. This medium could help in making our company more visible and popular. d) Gift (see appendix) We will provide the customer with free mini calendar so that they will be more motivated in growing their own flowers. e) Signboard (see appendix)
- 31. 31 6.7.5 Marketing budget Table 6.5 Marketing budget for Flores Virent Enterprise PARTICULARS FIXED ASSETS EXPENSES (RM) MONTHLY EXPENSES (RM) OTHERS EXPENSES (RM) Signboard 1 300 Initial promotion 1 000 Business card 300 Mini calendar 200 Brochure 350 TOTAL RM 1 300 RM 1 850
- 32. 32 OPERATION PLAN
- 33. 33 7.0 Operation plan The operational plan is one of the most important factors to consider in a business. Like other companies, our target is to ensure that our services are the best in quality and able to satisfy our customers’ needs and wants. Hence, systematic operational plan is formed so that our business runs smoothly and achieves its objectives. 7.1 Operational objectives The objectives of our operational plan are as follows: a) To ensure the operations of the business runs smoothly b) To optimize customer satisfaction and fulfill their expectations towards our ability to provide high quality products and timely service c) To achieve consistency and stability in our production and services d) To ensure the quality of our products and services meets the established standards e) To ensure our business is profitable and successful
- 34. 34 7.2 Process planning Customer enter the premise Customer choose the flower (seeds) and the vase that they want Customer then makes an order through the ordering system Production team received the order from the system and handles it to packaging team Meanwhile, the customer waits for several minutes for their ordered items. The packaging team sends the ordered items to the cashier to be delivered to the customer Customer made payment at the cashier Figure 7.1 Process flow chart in Flores Virent Enterprise
- 35. 35 7.3 Operations Layout Figure 7.2 Layout of Flores Virent premise FlowerDisplay Vase/PotDisplay Cashier& Collectingitems Customerwaitingseat
- 36. 36 Figure 7.3 2nd floor layout of premise Ready-to-packitem Place to pack the item Storageofseeds Soil,nutrientfertilizer,vase/pots Toilets
- 37. 37 7.4 Production Planning Production per year: Average Sale Price per unit = 68 740.875 35 = 1 964 units / year Production per month: Total Production per Year 12 month = 1 964 12 = 164 units / month Production per day: Total production per month 24 days = 164 24 days = 7 units / day
- 38. 38 7.5 Material Planning Table 7.1 Raw Materials per month NO. MATERIALS QUANTITY PRICE (RM) TOTAL PRICE (RM) 1 Hyacinth 35 bulb RM 25 1 050 2 Calla lily 35 bulb RM 25 1 050 3 Daffodil 35 bulb RM 25 1 050 4 Holland Tulip 35 bulb RM 25 1 050 5 Mini lotus 100 bulb RM 25 3 000 6 Mini water lily 35 bulb RM 25 1 050 7 Royal peony 35 bulb RM 25 1 050 8 Saffron crocus 35 Bulb RM 25 1 050 9 Venus flytrap 35 bulb RM 25 1 050 10 Nutrient fertilizer 1 Pack RM 25/ 1 Kg 25 11 Soil 1 Sacks RM 10 / 25 Kg (1 sack) 10 TOTAL RM 9 535
- 39. 39 7.6 Machines and equipment Table 7.2 Machines and equipment 7.7 Manpower Planning Table 7.3 Manpower Planning ITEMS UNIT PRICE (RM) TOTAL (RM) SUPPLIER Air conditioner 2 units 1 500 3 000 PANASONIC Lamp 4 units 120 480 IKEA Table 8 units 130 1 040 IKEA Chair 10 units 80 800 IKEA Racks / Shelves 10 units 100 1 000 IKEA Refrigerators 1 units 1 000 1 000 PANASONIC Vase / Pots 80 units 10 800 VIVA HOME Desktop PC 2 units 1 800 3 600 ASUS TOTAL RM 11 720 POSITION NO. OF STAFF MONTHLY SALARY (RM) EPF CONTRIBUTION 11% (RM) SOCSO 2.5 % (RM) AMOUNT (RM) Cashier 1 900 99 22.5 1021.5 Order 1 900 99 22.5 1021.5 Packaging 1 900 99 22.5 1021.5 TOTAL 3 RM 2 700 RM 297 RM 67.5 RM 3 064.5
- 40. 40 7.8 Overheads Requirement Table 7.4 Overheads Requirement No. ITEMS COST (RM) AMOUNT (RM) 1. Insurance 300 300 2. Fire extinguisher 35 x 2 unit 70 TOTAL RM 370 7.9 Location A strategic location is the most important thing that we should be considered. Without strategic location, we will counter problem in the future even though our plan is strategic. A strategic location that been chosen will determine whether the business can operate for long time period or not. Thus, Flores Virent Enterprise will be located at Jalan KJ 3 78200 Kuala Sungai Baru Melaka. In our operation plan, the choice of our location is depend on the following factors: 7.9.1 Distance from customer In our business, we choose this location because it situated in nearby town and housing. The location also near the main road also be important factor from transportation and many tourists can come at our place. 7.9.2 Facilities Our business location also has facilities in term of parking park, sources of water, electricity, communication facilities and also financial institution. 7.9.3 Security Security is very important in our business. The location of our business is very strategic because our premise is in the town. Besides, our location is near to the police station and public area.
- 41. 41 7.10 Business and operation hours Flores Virent operates 6 days per week. Flores Virent will be close only on Sunday. Our company will give 16 days annual leave for every employee. The workers get one day off and follow the rotation that company gives so they can spend time with their family and rest after tiredness working for 6 days. Table 7.5 Operation hours for Flores Virent Enterprise Day Time Monday, Tuesday, Wednesday, Thursday, Friday, Saturday 9.00 am – 9.00 pm Sunday Closed 7.11 License, permits and regulations Required Business act 1956 Our Flores Virent registered to Companies Commission of Malaysia (SSM) as stipulated in the Act 197 Registration of Business Act 1956. Requirements to register a sole proprietorship or partnership: a) Ownership must be a Malaysian Citizen or permanent resident of Malaysia b) Aged 18 years old and above c) Business must be carried out in Peninsular Malaysia or federal Territory of Labuan. An application under subsection (1) shall be made in the prescribed form and shall state: a) Name of the business b) Nature of the business
- 42. 42 c) Date of commencement of the business d) Address of the place of business in the case of a business having more than one place business, the address of the branches e) The particular of the partnership agreement f) In respect of the associate of the business, their full names, position hold and dates of entry into business’ g) Such other as the register may require
- 43. 43 7.12 Operations Budget Table 7.6 Operations Budget for Flores Virent Enterprise PARTICULARS FIXED ASSETS EXPENSES (RM) MONTHLY EXPENSES (RM) OTHERS EXPENSES (RM) Machine and Equipment 11 720 Salaries ( EPF,SOCSO) 3 064.50 Raw materials 9 535 Overhead requirements 370 TOTAL RM 11 720 RM 3 064.50 RM 9 905
- 44. 44 7.13 Implementation Schedule Table 7.7 Implementation schedule Flores Virent Enterprise Jan Feb Mar Apr May June July Aug Sept Incorporation of business Application of permits Searching for business premise Renovation of premise Procurement of machines and raw materials Recruitment of labors Installation of machines and equipment Launch of premise Figure 7.4 Gantt chart of Implementation schedule for Flores Virent Enterprise Activities Deadlines Durations Incorporation of business Jan-Mac 2018 3 months Application of permits Jan- April 2018 4 months Searching for business premise Feb- April 2018` 3 months Renovation of premise April 2018 1 month Procurement of machines and raw materials April- June 2018 3 months Recruitment of labors June 2018 1 month Installation of machines and equipment July 2018 1 month Launch of premise August 2018 1 month
- 45. 45 ORGANIZATIONAL PLAN
- 46. 46 8.0 Organizational/ Administration Plan 8.1 Organization’s vision, mission and objectives The management plan section explains how the business will be managed in order to ensure the objectives of the business can be achieved. It is the plan that describes the contributions of the management team and staff to the bottom line, setup plans and strategies of the business, and the division of work among them according to skills and qualification. 8.1.1 Vision Flores Virent wants to connect people to the world of plants, fostering delight and curiosity about indoor plantation while inspiring an appreciation and sense of stewardship of the environment. 8.1.2 Mission Flores Virent Enterprise will provide the customers with high quality seeds of Holland flowers at a fair price and strive to match and surpass the expectations that our customers expect from us and our products. Flores Virent Enterprise will not compromise on quality and will never use inferior product for the sake of price. 8.1.3 Objectives a) To achieve consistency in our company’s cash flow b) To ensure that we have good cash flow and a smooth running business c) To offer reasonable price to customers d) To achieve monthly profit targets e) To ensure the order is completed on time
- 47. 47 8.2 Organizational chart Figure 8.1 Organizational Structure of Flores Virent Enterprise SHADINA SHAH GENERAL MANAGER / ADMINISTRATIVE / FINANCIAL MANAGER OPERATION / PRODUCTION MANAGERMARKETING MANAGER PACKAGINGCASHIER ORDERING
- 48. 48 8.3 Manpower Planning Table 8.1 Position and number of personnel in Flores Virent Enterprise Position Number of personnel General Manager / Administrative / Financial Manager 1 Marketing Manager 1 Operation / Production 1 Workers Cashier Ordering Packaging 3 TOTAL 6 8.4 Schedule of tasks and responsibilities Table 8.4.2 describes the tasks and responsibilities of every position. The following functions and responsibilities have been identified and will be delegated to the respective individual to ensure the smooth of operation business.
- 49. 49 Table 8.2 Schedule of tasks and responsibilities Position Job description GENERAL MANAGER / ADMINISTRATION MANAGER / FINANCIAL MANAGER Responsible for overseeing all administrative functions in business. Ensure all activities to run smoothly using the proper procedure. Leading and directing employee. Prepared cash flow, trading profit and loss account and also the balance sheet of the company. To manage the flow of organization financial from suffered loss. To handle the administration, operations and marketing expenses not over the budget. To ensure the organization have financially stable. Responsible to the entire activities that involves the company finance. Organize and supervise other office activities. Manage schedules and deadlines. MARKETING MANAGER To identify the marketing target, current market and determine the strategy that suitable to be used. To prepared marketing analysis and observe the strategic location to expand the business. Doing consistent promotions to ensure
- 50. 50 the sales reach the objective goals. Analyze market trends and recommend changes to marketing business development strategies OPERATION / PRODUCTION MANAGER Ensure all workings are manufactured in correct, cost effective and timely manner in alignment with specifications and quality requirements. To ensure the smoothly flow of stock runs without having any shortage of stock. To ensure the quality of product. Controlling the operation includes the welfare and safety of workers. Contribute towards the achievement of company’s strategic and operational objectives To ensure all stock and equipment is sufficient. Overseeing inventory, distribution of goods and facility layout CASHIER To serve customers and carry out replenishment, merchandising and stock control activities to deliver an every little helps shopping trip for our customers Ensure store availability measure is achieved and customers can get what they want To coordinate product packaging
- 51. 51 PACKAGING development activity involving internal and external parties Managing all packaging innovation, labeling and improvement Work on material and ingredients sourcing when require ORDERING Verify and upload daily auto replenishment order Responsible for updating data and system maintenance is accurately maintained Responsible to manage, monitor, coordinate and ensure inventory is kept at optimum level Identifies and escalates root causes of over / under stocks for various products’ categories, and generates solutions / work together with respective department to overcome the issues Assist stores in managing and optimizing aged, returns and excess stocks
- 52. 52 8.5 Operation Layout Figure 8.2 Office layout Toilet Rest Room Office
- 53. 53 8.6 Schedule of remuneration For our company, we have chosen the EPF scheme to be given to all employees. Table 8.6.1 illustrates the remuneration plan for each employee in Flores Virent Enterprise. Table 8.3 Remuneration plan POSITION NO. OF STAFF MONTHLY SALARY (RM) EPF CONTRIBUTION (11%) (RM) SOCSO (2.5%) (RM) AMOUNT (RM) General Manager / Administration / Financial Manager 1 1 800 198 45 2 043 Marketing Manager 1 1 500 165 37.5 1 702.5 Operation Manager 1 1 500 165 37.5 1 702.5 Total 3 RM 4 800 RM 528 RM 120 RM 5 448 8.6.1 Salary Basic wage or salary will be paid in cash as stipulated in the employment contract. Wages will be paid once a month to the workers and payment will be paid at the end of the month. The salary will be debited to their accounts on the 27th of every month. Any increment in wages will be decided by the management. Salaries will be given to all employees based on their qualification and working experience.
- 54. 54 8.6.2 EPF and SOCSO contributions EPF contributions will be deducted from all workers’ salaries. The company will also contribute to SOCSO which is 2% of the workers basic salary. 8.6.3 Working hours Every employee who works in Flores Virent Enterprise has to work starting from 9.00 a.m. until 9.00 p.m. every Monday to Saturday. Lunch hour is from 1.00 p.m. until 2.00 p.m. 8.6.4 Medical allowance Medical allowance will be provided in the event of illness. 8.6.5 Maternity benefits Female employees are entitled to 60 days maternity leave for every confinement period. Allowance is not given to employees who have more than five surviving children. 8.6.6 Insurance Insurance coverage will be given to all workers, the premises or buildings bought or rented as well as all means of transportation. 8.6.7 Bonus Bonus will be paid depending on the tailor’s job performance. 8.6.8 Compensation and benefits to workers Compensation and benefits are given to workers to improve their performance and job satisfaction.
- 55. 55 8.6.9 Holidays All workers are entitled to have at least one rest days that is on Sunday every week. 8.6.10 Annual leave and sick leave Each worker will be given an annual leave of 16 days. In terms of sick leave, the medical certificate has to be approved by a registered medical practitioner. If an employee is hospitalized, he is entitled to 60 days of sick leave whereby his wages will still be paid. But if the employee is hospitalized more than 60 days, his wages will not be paid. 8.7 List of Office Equipment Flores Virent Enterprise has bought office equipment and supplies as listed in table 8.4 Table 8.4 List of office equipment ITEMS QUANTITY PRICE PER UNITS (RM) TOTAL COST (RM) SUPPLIER Desktop PC 2 units 1 800 3 600 ASUS Telephone 1 unit 600 600 PANASONIC White Board 1 unit 120 120 EASY WRITE Photostate machine 1 unit 1 000 1 000 RICOH SP Small Dustbin 3 units 5 15 IKEA TOTAL RM 5 335
- 56. 56 8.8 List furniture, fixture and fitting Table 8.5 List of Furniture, Fixture and Fitting ITEMS QUANTITY PRICE PER UNITS (RM) TOTAL COST (RM) SUPPLIER Office manager table and chair 3 set 500 1 500 IKEA Air Conditioner 1 unit 1 500 1 500 PANASONIC First aid kit 1 unit 40 40 DEMC Storage cabinet 1 unit 1 200 1 200 IKEA Sofa & Coffee Table 1 set 2 000 2 000 IKEA Lamp 2 units 120 240 IKEA TOTAL RM 6 480 8.9 Pre-operational budget Table 8.6 Pre-operational Budget ITEM RM Business license 250 Business registration 60 Fire insurance 500 TOTAL RM 810
- 57. 57 8.10 Utilities expenses Table 8.7 Utilities expenses ITEMS RM Water 300 Electricity 1 200 TM Wi-Fi 300 Rental 2 500 Rental deposit (other expenses) 3 000 TOTAL RM 7 300
- 58. 58 8.11 Administration budget Table 8.8 Administration Budget PARTICULARS FIXED ASSETS EXPENSES (RM) MONTHLY EXPENSES (RM) OTHERS EXPENSES (RM) Office Equipment 5 335 Furniture, fitting, and fixture 6 480 Salaries ( EPF,SOCSO) 5 448 Utilities 4 300 Rental deposit 3 000 Pre Operational Expenses 810 Stationery 100 Maintenance 1 500 TOTAL RM 11 815 RM 9 748 RM 5 410
- 59. 59 FINANCIAL PLAN
- 60. 60 9.0 FINANCIAL PLAN Financial plan is important for the overall success of Flores Virent Enterprise because it helps to: a) Determine the size of investment that is the project implementation cost b) Identify and propose the relevant source of finance c) Ensure the initial capital is sufficient d) Appraise the viability of the project before actual investment is committed e) Guide the implementation of plans
- 61. 61 9.1 PROJECT IMPLEMENTATION COST AND SOURCE OF FINANCING Table 9. 1 Project implementation cost and source of finance for Flores Virent Enteprise CashExistingF.Assets 5,3355,335 6,4806,480 1,3001,300 11,72011,720 29,24429,244 37,80037,800 9,6809,680 3,4503,450 5,2505,250 110,25960,73949,520 FLORESVIRENTENTERPRISE OwnContributions Land&Building OfficeEquipment Furniture,fixtureandfittings CapitalExpenditureCost Pre-Operating&IncorporationCosts(one-off) TOTAL WorkingCapital ProvisionforContingencies Loan Sales&MarketingCosts(monthly) General&AdministrativeCosts(monthly) Operations&TechnicalCosts(monthly) OtherExpenditure(annually) Hire-Purchase Signboard Machinesandequipmment ©2017IsmailAb.WahabMASMEDUiTM
- 62. 62 9.2 PRO FORMA CASH FLOW STATEMENT Table 9.2 Cash flow pro forma statement for Flores Virent 2018 MONTHPre-OperationsJanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember CASHINFLOW Capital(Cash) 60,73960,739 Loan49,52049,520 CashSales68,74168,74168,74168,74168,74168,74168,74168,74168,74168,74168,74168,741824,891907,380998,118 CollectionofAccountsReceivable TOTALCASHRECEIPT110,25968,74168,74168,74168,74168,74168,74168,74168,74168,74168,74168,74168,741935,150907,380998,118 Pre-operating&IncorporationExpenditure9,6809,680 Sales&MarketingExpenditure General&AdministrativeExpenditure9,7489,7489,7489,7489,7489,7489,7489,7489,7489,7489,7489,748116,976122,825131,423 Operations&TechnicalExpenditure3,0657,83312,60012,60012,60012,60012,60012,60012,60012,60012,60012,600136,898153,039161,463 OtherExpenditure3,4503,4503,6233,876 PurchaseofFixedAssets24,83524,835---- Hire-PurchaseRepayment: Principal-- Interest-- LoanRepayment: Principal3283283283283283283283283283283283283,9374,1344,341 Interest2062062062062062062062062062062062062,4762,2792,072 TaxPayable000 TOTALCASHOUTFLOW34,51516,79718,11522,88222,88222,88222,88222,88222,88222,88222,88222,88222,882298,252285,899303,175 CASHSURPLUS(DEFICIT)75,74451,94350,62645,85845,85845,85845,85845,85845,85845,85845,85845,85845,858636,898621,480694,942 BEGINNINGCASHBALANCE75,744127,688178,314224,172270,031315,889361,748407,606453,465499,323545,181591,040636,8981,258,379 ENDINGCASHBALANCE75,744127,688178,314224,172270,031315,889361,748407,606453,465499,323545,181591,040636,898636,8981,258,3791,953,321 MONTHLYCASHFLOW 201820192020 CASHOUTFLOW FLORESVIRENTENTERPRISE
- 63. 63 9.3 Pro Forma Income Statement Table 9.3 Pro forma Income Statement Flores Virent Year Ended 31 December 2018 2019 2020 824,891 907,380 998,118 97,922 118,491 127,337 #VALUE! #VALUE! 726,968 788,888 870,781 #VALUE! #VALUE! 6,680 116,976 122,825 131,423 36,780 38,619 41,322 #VALUE! #VALUE! 3,072 2,691 2,358 #VALUE! #VALUE! 3,450 3,623 3,876 560,010 621,131 691,802 #VALUE! #VALUE! 2,476 2,279 2,072 557,534 618,852 689,730 #VALUE! #VALUE! Income Tax 0 0 0 #VALUE! #VALUE! 557,534 618,852 689,730 #VALUE! #VALUE! Years Sales FLORES VIRENT ENTERPRISE PRO-FORMA INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER General &Administrative Expenditure Pre-Operating &Incorporation Expenditure Expenditure NetIncome Before Tax Intereston Loan Sales &Marketing Expenditure NetIncome After Tax Depreciation ofFixed Assets Intereston Hire-Purchase OtherExpenditure OperatingIncome Less:CostofSales (Notes 1 &2) Operations &Technical Expenditure Gross Income
- 64. 64 9.4 Pro Forma Balance Sheet Table 9.4 Pro Forma Balance Sheet 2018 2019 2020 21,763 19,072 16,714 - - - 3,000 3,000 3,000 24,763 22,072 19,714 16,498 18,148 19,962 #VALUE! #VALUE! 636,898 1,258,379 1,953,321 653,396 1,276,526 1,973,283 #VALUE! #VALUE! 678,159 1,298,598 1,992,998 #VALUE! #VALUE! 60,739 60,739 60,739 557,534 1,176,386 1,866,116 618,274 1,237,126 1,926,855 41,449 37,108 32,551 27,765 22,740 41,449 37,108 32,551 27,765 22,740 14,303 20,024 29,034 #VALUE! #VALUE! 4,134 4,341 4,558 4,786 5,025 18,436 24,364 33,592 #VALUE! #VALUE! 678,159 1,298,598 1,992,998 #VALUE! #VALUE! Accumulated Fund Accumulated Income Hire-Purchase Balance Loan Balance TOTAL EQUITY & LIABILITIES Accounts Payable Current Liabilities Long-Term Liabilities Other Current Liabilities Loan Due Within Current Year Net Worth (Equity) Land & Building Current Assets Deposit Cash Balance Accounts Receivable Other Fixed Assets TOTAL ASSETS Other Current Assets Other Non-Current Assets Inventory FLORES VIRENT ENTERPRISE PRO-FORMABALANCE SHEET AS AT 31 DECEMBER ASSETS Non-Current Assets (Book Value) Hire-Purchase Due Within Current Year
- 65. 65 9.5 Start-up summary 9.5.1 Start-up information Figure 9.1 Start-up information 9.5.2 Source of starting Figure 9.2 Source of starting 0 20,000 40,000 60,000 80,000 100,000 120,000 Project Cost Capital Expenditure Operating Expenditure Loan Owners' Equity 110,259 24835 35478 49,520 60,739 START-UP INFORMATION Cash 60,739RM Existing F. Assets -RM Loan 49,520RM Hire-Purchase -RM Total 110,259RM START-UP SUMMARY RM- RM20,000 RM40,000 RM60,000 RM80,000 RM100,000 RM120,000 Cash Existing F. Assets Loan Hire-Purchase Total RM60,739 RM- RM49,520 RM- RM110,259
- 66. 66 9.6 Financial Report 9.6.1 Annual sales Figure 9.2 Annual sales for Flores Virent Enterprise ## RM998,118 RM998,118 RM998,118 2018 2019 2020 RM0 RM100,000 RM200,000 RM300,000 RM400,000 RM500,000 RM600,000 RM700,000 RM800,000 RM900,000 RM1,000,000 RM824,891 RM907,380 RM998,118 RM998,118 RM998,118
- 67. 67 9.6.2 Annual Income Figure 9.3 Annual Income Gross IncomeOperating Income Net Incopme After Tax ### RM560,010 557,534 RM560,010 ### RM621,131 618,852 RM621,131 ### RM691,802 689,730 RM691,802 ### #VALUE! #VALUE! #VALUE! ### #VALUE! #VALUE! #VALUE! 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 2018 2019 2020 Gross Income Operating Income Net Incopme After Tax ANNUAL INCOME
- 68. 68 9.7 Liquidity Figure 9.4 Current Ratio Figure 9.5 Quick Ratio 0 10 20 30 40 50 60 2018 2019 2020 2021 2022 35 52 59 0 0 Current Ratio 0 10 20 30 40 50 60 2018 2019 2020 2021 2022 35 52 58 0 0 Quick Ratio (Acid Test)
- 69. 69 9.8 Profitability Figure 9.5 Gross Profit Margin Figure 9.6 Net Profit Margin 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 2018 2019 2020 2021 2022 88% 87% 87% 0% 0% Gross Profit Margin 0% 10% 20% 30% 40% 50% 60% 70% 0% 10% 20% 30% 40% 50% 60% 70% 2018 2019 2020 2021 2022 68% 68% 69% 0% 0% Net Profit Margin
- 70. 70 Figure 9.7 Return On Assets Figure 9.8 Return on Equity 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 2018 2019 2020 2021 2022 82% 48% 35% 0% 0% ReturnonAssets 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2018 2019 2020 2021 2022 90% 50% 36% 0% 0% ReturnonEquity
- 71. 71 9.9 Financial leverage Figure 9.9 Debt to Equity Figure 9.10 Debt to Assets 0% 2% 4% 6% 8% 10% 2018 2019 2020 2021 2022 9% 5% 3% 0% 0% Debt to Equity 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 2018 2019 2020 2021 2022 8% 4% 3% 0% 0% Debt to Assets
- 72. 72 Figure 9.11 Time Interest Earned 0 50 100 150 200 250 300 350 2018 2019 2020 2021 2022 224 271 332 0 0 Time Interest Earned
- 73. 73 CONCLUSION
- 74. 74 10.0 CONCLUSION / SUMMARY AND RECOMMENDATION Through the business, we are able to answer the raising question in the beginning about the feasibility of business. The market opportunities are very encouraging. The management team complement each other’s skills. The only grand challenge for Flores Virent is to differentiate itself from existing tough competition. The business will continuously perform the business strategies, especially on the marketing aspects to ensure that the business is well known to the customers and we hope to build a loyal customer.
- 75. 75 APPENDICES
- 76. 76 11.0 APPENDICES 1. Business card 2. Brochure 3. Gift (Mini Calendar)
- 77. 77 4. Promotion through social media (Facebook, Twitter and Instagram)
- 78. 78 5. Signboard
- 79. 79 6. SSM Registration
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FACULTY OF APPLIED SCIENCE DIPLOMA IN SCIENCE (AS120) AS1205_D FUNDAMENTALS OF ENTREPRENUERSHIP ENT 300 BUSINESS NAME: PERSONALIZZARE PIZZA PREPARED FOR: ENCIK MOHD HAFIZEE BIN IDERIS PREPARED BY: MOHAMMAD FAIZ BIN JAMAL 2016337807 ILYANA BINTI AMRAN 2016562461 MOHD IZZAT WAFI BIN MD YAZI 2016931169 NUR SYUHADA BINTI AHMAD TERMIZI 2016726471 NAJIHAH BT. MOHD TAHIR 2016936353 LETTER OF SUBMISSION Diploma in Science (AS120) Faculty of Applied Science UniversitiTeknologi MARA Cawangan Perak Kampus Tapah 35400 Tapah Perak Darul Ridzuan 12th APRIL 2019 Encik Mohd Hafizee Bin Ideris Lecturer of Fundamentals of Entreprenuership (ENT300) Faculty of Business Management UniversitiTeknologi MARA Cawangan Perak Kampus Tapah 35400 Tapah Perak Darul Ridzuan Encik, Submission of the Business Plan (ENT 300) Attach is the business plan title “Personalizzare Pizza” to fulfill the requirements as needed as university requirements. Below is the list of the group members that involved in completing this business plan: MOHAMMAD FAIZ BIN JAMAL 2016337807 ILYANA BINTI AMRAN 2016562461 MOHD IZZAT WAFI BIN MD YAZI 2016931169 NUR SYUHADA BINTI AHMAD TERMIZI 2016726471 NAJIHAH BT. MOHD TAHIR 2016936353 Thank you, Yours sincerely ……………………… MOHAMMAD FAIZ BIN JAMAL General Manager 2|Page ACKNOWLEDGEMENT First and foremost, we would like to thank to our lecturer, Encik Mohd Hafizee Bin Ideris for the valuable guidance and advice. He inspired us greatly to work in this project. His willingness to motivate us contributed tremendously to our project. We also would like to thank him for showing us some example that related to the topic of our project. Besides, we would like to thank the authority of Universiti Teknologi MARA Cawangan Perak Kampus Tapah for providing us with a good environment and facilities to complete this project. Also, we would like to take this opportunity to thank to the Faculty of Applied Science for offering this subject, Fundamentals of Entrepreneurship. It gave us an opportunity to participate and learn about the business opportunities. Finally, an honorable mention goes to our families, group members and friends for their understandings and supports on us in completing this project. Without helps of the particular that mentioned above, we would face many difficulties while doing this project. 3|Page TABLE OF CONTENTS CONTENT COVER LETTER OF SUBMISSION ACKNOWLEDGEMENT TABLE OF CONTENT EXECUTIVE SUMMARY 1. INTRODUCTION 2. PURPOSE OF BUSINESS PLAN 3. BUSINESS BACKGROUND 3.1 LOGO AND DESCRIPTION 3.2 LOCATION 4. BACKGROUND OF PATNERSHIPS 5. MARKETING PLAN PAGES 2 3 4 5 6 7 8 9 10 12 17 5.1 INTRODUCTION 5.2 DESCRIPTION OF PRODUCT 5.3 TARGET MARKET 5.4 MARKET SIZE 5.5 COMPETITORS 5.6 MARKET SHARE 5.7 SALE FORECAST 5.8 MARKET STRATEGEY 5.9 MARKET BUDGET 6. OPERATIONAL PLAN 31 6.1 INTRODUCTION 6.2 OPERATION OBJECTIVE 6.3 OPERATION PROCESS 6.4 PRODUCTION PLANNING 6.5 MATERIAL PLANNING 6.6 MACHINES & EQUIPMENTS PLANNIG 6.7 OPERATION LAYOUT PLAN 6.8 OPERATION BUDGET 6.9 OPERATION OVERHEADS 6.10 PERMIT, LICENSE AND REGULATIONS 4|Page 7. ADMINISTRATION PLAN 49 7.1 INTRODUCTION 7.2 VISION, MISSION, MOTTO AND OBJECTIVES OF THE BUSINESS 7.3 ORGANIZATIONAL CHART 7.4 LIST OF ADMINISTRATIVE PERSONEL 7.5 SCHEDULES OF TASK AND RESPONSIBILITIES 7.6 SCHEDULES OF RUMENERATION 7.7 OFFICE EQUIPMENT AND FITTING 7.8 LIST OF STATIONARY AND OFFICE SUPPLIES 8. FINANCIAL PLAN 59 8.1 INTRODUCTION 8.2 CAPITAL EXPENDITURE 8.3 PRE-OPERATING AND WORKING CAPITAL 8.4 SALES AND PURCHASES 8.5 PROJECT IMPLEMENT COSTS 8.6 SOURCES OF PROJECT FINANCING 8.7 LOAN AMORTIZATION SCHEDULES 8.8 DEPRECIATION OF FIXED ASSETS 8.9 PRO FORMA CASH FLOW STATEMENT 8.10 PRO FORMA INCOME STATEMENT 8.11 PRO FORMA BALANCE SHEET 8.12 FINANCIAL PERFORMANCES 9. APPENDICES PARTNERSHIP AGREEMENT 80 82-84 5|Page EXECUTIVE SUMMARY Personalizarre Pizza Enterprise is a fresh new company that just started to operate in Malaysia. The name of this company is come out from the concept and theme of the product itself. It gives the customer an idea on the product that we serve. The name also easy to remember and pronounce. As for the business, we are providing a special, delicious pizza for the Malaysian based on their choices. As we go through with the changes of environment, economical, and sociological, people nowadays don’t put simple food on their own daily meals. So, from our survey we conclude that we are going to provide the Malaysian with the healthy, fast, and special pizza within their budget at the same time, the quality of the product always being our priority. Starting capital of this business is RM150,000.00 and all of the partners are contributing RM750,000.00. We have six workers that is general manager, administration manager, operational manager, marketing manager, financial manager, and four from the operational department. Our target market of customers is come from all ages level, who come from all economical background. Even children also can consume our pizza. Business plan is necessary to all businesses. This plan includes the marketing, operation, administration, and financial plan. 6|Page 1.0 Introduction i. Name of the Business : Personalizarre Pizza Enterprise ii. Nature of Business : Partnership iii. Location of the business : Selangor iv. Industry Profile : Food v. Date of business commencement : 1st January 2020 vi. Factors in selecting the proposal business: 1. Providing a variety of topping for the customer to choose for their pizza. 2. Giving a new style of pizza concept to attract new customer. 3. Helping saving time for the career housewives to cook new recipes. vii. Future prospects of the business 1. Opening new franchise for our restaurant 2. Expand our company into international market 3. To become number one pizza restaurant in Malaysia 7|Page 2.0 Purpose Of The Business Plan In general, this business plan was prepared in order to determine a few important purposes. Below are the highlighted purposes of the business plan done; 1. As an important piece of document that will serve as guidance to the owner, investor, suppliers, customers and our company’s partner. Creating a clear and transparent outline for current and future referral as a preparation for any misunderstandings that might occur among all parties involved and participating, as well as gaining confidence and fervor from all the stakeholders in our business endeavor. 2. To attract banker. To convince the bankers in black in white that the business is an ideal investment and expected to flourish in its industry thus obtaining and incremental rise up in the capital application in order to help the business venture. 3. As guideline for company’s operation as it is very important to ensure that all the activities goes smoothly and are aligned with the organization’s goals and objective in achieving longterm success in the industry. 4. To distribute business resources effectively. To become cost-efficient in every task and to eliminate the wastage elements in all aspects of the businesses. 8|Page 3.0 Business Background Table 3.1 Business Background Name of the Business Personalizarre Pizza Enterprise Business Address / Correspondence Lot 6, Jalan PJU 1/41, Dataran Prima, Address 47301, Petaling Jaya, Selangor. Instagram @Personalizarre_Pizza E- mail [email protected] Telephone & Fax Number 03-5144 2880 Form of Business Partnership Main Activity Providing pizza Date of Commencement 1st January 2020 Date of Registration 1st December 2019 Registration Number RA398775 Name of Bank Malayan Banking Berhad (Maybank) Bank Account Number 1443 5732 6544 9|Page 3.1 LOGO AND DESCRIPTION PP Stands for our restaurant, Personalizarre Pizza. Pizza It shows that our place provide pizza and focusing more about pizza as their main dish. Pizza for everyone The phrase is about our pizza that providing customer a free will to choose their own topping for the pizza. So, our pizza is suitable for those customers who a bit picky about what they eat and can be eaten by all ages. 10 | P a g e 3.2 LOCATION Address of Personalizarre Pizza Enterprise: Lot 6, Jalan PJU 1/41, Dataran Prima, 47301, Petaling Jaya, Selangor. Premise: 11 | P a g e Map: 12 | P a g e 4.0 BACKGROUND OF PARTNERSHIPS 1. GENERAL MANAGER. NAME OF PARTNER MOHAMMAD FAIZ BIN JAMAL IDENTITY CARD NUMBER 980115-14-5223 ADDRESS BLOK 54-15-02 FLAT SRI SABAH, KM6, JALAN CHERAS, CHERAS, 56100, W.P KUALA LUMPUR EMAIL [email protected] PHONE NUMBER 017-6258793 DATE OF BIRTH 15 JANUARY 1988 MARITAL STATUS MARRIED ACADEMIC QUALIFICATION DIPLOMA IN SCIENCE BACHELOR OF BUSINESS MANAGEMENT (HONS.) SKILLS SUPERVISORY SKILS DECISION MAKING CONFLICT RESOLUTION INVENTORY MANAGEMENT EXCELLENT IN COMMUNICATION SKILL ABILITY TO LEAD AND MENTOR TEAM EXPERIENCES CLIENT SERVICE MANAGER GENERAL MANAGER 13 | P a g e 2. ADMINISTRATION EXECUTIVE. NAME OF PARTNER ILYANA BINTI AMRAN IDENTITY CARD NUMBER 930116465210 ADDRESS 2747, KG. SEB. PANGGONG, KERANDANG, 22000 JERTEH, TERENGGANU. EMAIL [email protected] PHONE NUMBER 0135144280 DATE OF BIRTH 16 JANUARY 1993 MARITAL STATUS SINGLE ACADEMIC QUALIFICATION CERTIFICATE OF HUMAN RESOURCES MANAGEMENT DIPLOMA IN SCIENCE BACHELOR OF SCIENCCE IN BUSINESS ADMINISTRATION SKILLS OFFICE MANAGEMENT SPREADSHEET AND DATABASE CREATION INVENTORY MANAGEMENT EXPERIENCES ADMINISTRATIVE ASSISTANT OFFICE ASSISTANT 14 | P a g e 3. MARKETING EXECUTIVE. NAME OF PARTNER MOHD IZZAT WAFI BIN MD YAZI IDENTITY CARD NUMBER 900610-02-5327 ADDRESS HADAPAN SURAU KAMPUNG PIDA 6 GERBI AYER HITAM , 06150 JITRA , KEDAH EMAIL [email protected] PHONE NUMBER 012-4582529 DATE OF BIRTH 10 JUNE 1990 MARITAL STATUS SINGLE ACADEMIC QUALIFICATION DIPLOMA IN SCIENCE BACHELOR’S DEGREE IN MARKETING SKILLS EDITING VIDEOS AND PICTURES CREATING POSTERS GOOD POWERPOINT SKILLS COMMUNICATION AND ORGANIZATIONAL SKILL EXPERIENCES DIGITAL MARKETING SALES ACCOUNT MANAGER ASSISTANT MARKETING MANAGER 15 | P a g e 4. OPERATION EXECUTIVE. NAME OF PARTNER NUR SYUHADA BT AHMAD TERMIZI IDENTITY CARD NUMBER 900831-38-5018 ADDRESS 116-A, LALUAN MERU PERMAI, TAMAN MERU RAYA, 32000, IPOH, PERAK EMAIL [email protected] PHONE NUMBER 019-2725018 DATE OF BIRTH 31 AUGUST 1990 MARITAL STATUS SINGLE ACADEMIC QUALIFICATION BACHELOR OF SCIENCE IN ACCOUNTING SKILLS ABILITY IN STAFF TRAINIING CREATIVE THINKING AND PROBLEM SOLVING ABILITY OF PROJECT PLANNING AND DEVELOPEMENT EXPERIENCES TEAM MANAGER OPERATION MANAGER ASSISTANT SERVICE DELIVERY OPERATION MANAGER 16 | P a g e 5. FINANCE EXECUTIVE. NAME OF PARTNER NAJIHAH BINTI MOHD TAHIR IDENTITY CARD NUMBER 920923-10-5262 ADDRESS LOT 41D, JLN BERKAT 1, KG SRI AMAN, BT 13, 47150 PUCHONG, SELANGOR EMAIL [email protected] PHONE NUMBER 013-2330553 DATE OF BIRTH 23 SEPTEMBER 1992 MARITAL STATUS SINGLE ACADEMIC QUALIFICATION DIPLOMA IN SCIENCE BACHELOR OF SCIENCE, FINANCE SKILLS STRATEGIC AND FINANCIAL PLANNING EXPERT STAFF LEADERSHIP AND DEVELOPEMENT RISK AND PORTFOLIO MANAGEMENT EXPERIENCES SALES MARKETING AT MEM WATCHES CUSTOMER SERVICES AT THO MEM GROUP FINANCIAL ANALYST CASH FLOW CONTROL 17 | P a g e MARKETING PLAN 18 | P a g e 5.1 INTRODUCTION TO MARKETING PLAN Marketing can be defined as a “satisfying needs and wants through an exchange process”. In addition, marketing also can be defined as the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchange that satisfy individual and organization objectives. The basic idea of marketing is basically an exchange activity that takes place between a business entity and its customer. These customers include individual, business entity, and the support organizations. Marketing is a crucial and critical aspect in business and always referred as the backbone to any business in achieving a profitable outcome. 5.0.1 Marketing Objectives To ensure customer satisfaction and build a repeat-customer base. To achieve financial goals by reducing costs while growing profits at the same time. To improve position in the local market and strengthen brand. 19 | P a g e 5.2 DESCRIPTION OF PRODUCTS Table 6.1.1 Product description Product Description Provides customized pizza according to what Features flavor/topping that customers want. Meats Pepperoni Materials Seafood Vegetables Mozzarella cheese Benefits Customers can choose their favorite flavor/topping. Edible to people from 4 years old and above. Table 6.2.2 Product illustration 20 | P a g e 5.3 TARGET MARKET 5.3.1 Geographic Segment Geographic is one of the important segments on the distribution to the market of our product. It will be easy and suitable for us to take place in Petaling Jaya and predicted to expand to nearest districts/states. The reason why Petaling Jaya is chosen because it is one of the developing districts in Selangor and the population increase by year. Hence, the district will have high demand for ready-made food since the people are busy with works and more. It is good for us to start our business in such developing district. Furthermore, our pizzas are customized according to how customers want. So, they can enjoy the pizza to the fullest. As for the beginning, this will help the brand/company to be known by the citizens. 21 | P a g e 5.3.2 Volume Purchase Before entering this market, around 108,682 pizzas were sold in Petaling Jaya. After doing a lot of research, our company decided to give new experience for the customers which is they can choose their favorite toppings/ingredients for the pizza that they want to order. By doing this, customers can enjoy their pizza to the fullest. This can avoid the customers from order pizza with topping that they cannot eat. For example, there are customers that cannot eat pineapple. Instead of choosing pineapple, they can choose mushroom as topping for their pizza as long as they can enjoy the pizza. 5.3.3 Quality Evaluation of Distributor Our company provides pizza that anyone can eat without any bad consequences. In order to maintain the quality of the pizza, our company make sure that the ingredients/toppings that we use for the pizza are fresh and it is sell out every day. So, in the next day, fresh, new ingredients is use. We also provide packaging box that can keep the pizza at hot, edible temperature so the quality of the pizza is consistent, and customers can enjoy the pizza with great experiences. 5.4 MARKET SIZE 22 | P a g e 5.3.1 Population table 220.127.116.11 Population Table 18.104.22.168 Petaling Jaya, Selangor Number of populations No of Price/unit production (RM) Total needed (unit) 24,379 48,758 TOTAL 48,758 23.00 1,121,434.00 1,121,434.00 Note: 1 unit = 1 box 1 box = 1 pizza Price per box = RM23.00 5.3.2 Total market size Total market size = Population = Total Table 22.214.171.124 = RM1,121,434.00 5.5 COMPETITORS 23 | P a g e 5.4.1 Identifying competitors Table 6.4.1 Competitive analysis Competitors Pizza Hut Domino’s Pizza 5.2.2 Strengths Weaknesses Services Not vary Brand equity Location of franchises Promotions Worldwide franchises Lack of dine-in places Quality Brand equity Worlwide franchises Services Ranking of the competitors Table 5.4.2 Ranking of the competitors Rank No Competitors 1 Domino’s Pizza 2 Pizza Hut 5.6 MARKET SHARE 5.5.1 Market share before the entry of Personalizarre Pizza. 24 | P a g e Table 6.5.1 Market share before the entry of Personalizarre Pizza Competitor Before entrance (%) Amount (RM) Domino’s Pizza 54 605,574.36 Pizza Hut 46 515,859.64 TOTAL 100 1,121,434.00 5.5.2 Adjusted market share after the entry of Personalizarre Pizza. Table 5.5.2 Market share after the entry of Personalizarre Pizza Competitor After entrance (%) Amount (RM) Percentage of loss (%) Domino’s Pizza 51 571,931.34 3 Pizza Hut 42 471,002.28 4 Personalizarre Pizza 7 78,500.38 - TOTAL 100 1,121,434.00 7 25 | P a g e 5.7 SALES FORECAST Table 6.6 Sales Forecasting Month Sales Forecast Remarks 1 79,390.10 2 77,243.90 3 73,789.45 4 70,219.85 5 69,975.00 5Labour Day Ramadhan 6 72,349.25 8Hari Raya Puasa 7 74,529.40 8 73,728.80 8Hari Raya Haji Malaysia’s National Day 9 70,678.20 6Muharram/New Year Malaysia Day 10 71,978.30 5Deepavali 11 75,657.75 12 77,927.95 Year 1 887,467.95 Year 2 976,214.75 Year 3 1,064,961.55 7Chinese New Year Valentine’s Day School Holidays Christmas Eve New Year’s Eve 26 | P a g e 5.8 MARKET STRATEGY (MARKETING MIX) 5.8.1 Product Our pizza is not as the usual pizza that everyone sees or eat. Our pizza is edible in a wide range of age estimate starting from 4 years old above because the pizza that customers buy from us is customized by the customers themselves. We provide pizza that customers can choose whatever topping on the menu that they want to add on the pizza that they order from us. So, everyone can enjoy eating pizza of their favorite flavor. 5.8.2 Price The price for the pizza that we produce is depending on how much ingredients/topping of customer’s choice per pizza. For set A which is two topping per pizza, the price is RM23. For set B, which is three topping per pizza, the price is RM25 and for set C which is four topping per pizza, the price is RM28. The price for each pizza is reasonable with the quality of the pizza that we provide to customers as they can customize their pizza by choosing any topping of their favorite. 5.8.3 Place 27 | P a g e In this business, we target people/citizens that live in Petaling Jaya (Dataran Prima) which is located in Selangor. The reason why our business starts in the area because it is a developing district/region. Proportional to the development, the amount of population also increases by year. So, it is good to start a new business in such place so that the name/brand of the company can be wellknown. 5.8.4 Promotion (promotion mix) In business environment, promotion plays the crucial part for effective business development. Along with positive brand image, an effective promotion can contribute to the fast and steady business development. In this regard, our company needs to conduct promotion carefully to promote the products and to reach the target market. The promotions are available according to events (Hari Raya, New Year, etc.), celebration, and demands from customers (student card, 28 | P a g e member card). For the advertisement, we use social medias like Instagram to promote our brand. 5.8.5 Manpower Planning Table 5.9 List of Marketing Personnel Position No of Personnel Marketing Executive 1 5.8.6 Schedule of Task and Responsibilities Table 5.10 Task and Responsibilities of Marketing Personnel: Position Marketing Executive Task and Responsibilities Establish target market strategy and attempt to achieve target. To attract customers by planning a good marketing strategy. To do promotion to introduce our company/brand To create a futuristic sand attractive marketing promotion. To report to the General Manager regarding the performance of Marketing Department 29 | P a g e 5.9 MARKETING BUDGET Table 5.11 Marketing Budget Item Fixed Assets Monthly Other Expenses Expenses (RM) (RM) Fixed Asset Signboard 2,000 Other Expenses Pamphlet Business Card Advertising Total Grand Total 250 30 120 2,000 120 280 2400 30 | P a g e OPERATING PLAN 6.0 INTRODUCTION TO OPERATIONAL PLAN The operation plan is one of the most important factors to consider in a business. Like other companies, our targets are to ensure that our products or services are the best quality and able to 31 | P a g e satisfy our customer’s need and wants. Hence, a systematic operational plan is formed so that our business runs smoothly and achieves its objectives. 6.0.1 OPERATION OBJECTIVES To make sure that all the operation activities will be run properly and effectively by the workers who are responsible for it and able to achieved the business goal. To ensure that all the products that provided to our customer follow the requirements and needs in order to make them satisfy with our product. To make sure that our product is nutritious, clean, Halal and always available to the customer. To make sure that the stocks is being managed properly. To ensure all the workers can perform their job effectively. To maximize the sustainable profit growth and minimize the lost. To make our company grow faster in order to be more competitive in the business. To be more creative and innovative in order to attract customers. To be aware with new business opportunity that is based on our product To make sure the performance of our business operation will be successful. 6.1 OPERATION PROCESS 6.1.1 Activity flow chart Customer walk in and queue up at the counter 32 | P a g e The staff will greet and take order from the customer based on the menu Customer make payment for their order and get an order number The staffs prepare the food based on customer’s order Customer kindly wait for their order to be ready Customer take their food at the pickup counter as their order number being called 6.1.2 Flow Chart for the Production of Pizza Add 2 tablespoon of dry yeast to lukewarm water about (90°F/32°C), add salt, sugar and oil. Then, stir Add one cup of flour and remaining 2 cups of flour to the yeast mixture. Stir well with the ladle. 33 | P a g e Turn the dough onto a lightly floured counter and knead briefly until smooth about 5 minutes. Shape dough into a ball. Place onto greased cookies sheet and flatten, shaping into a round, flat pizza. Spread the pizza sauce and cheese on the dough. Add as much sauce and cheese based on customer’s requirement. Add any favorite toppings based on customer’s order. The meat toppings were cooked first on the stove before adding them. Preheat the oven to 450°F/ 230°C. Bake for 20 minutes or until the crust is golden brown and cheese has melted. 6.2 PRODUCTION PLANNING 6.2.1 Calculation for output per day: Pizza is ready to be served to customer. Average Sales Forecast per month = RM 73,955.70 Price / pack = RM 23.00 34 | P a g e No. of output / month = RM 73,955.70/ RM 23.00 = 3216 pack/ month Working days = 30 days No. of Output / day = 3216 / 30 days = 107 pack / day 6.2.2 Position and number of personnel Position No. of personnel Kitchen Workers 3 Cashier 1 35 | P a g e 6.2.3 Schedule of Task and Responsibilities Position Task and Responsibilities Kitchen Workers To prepare the pizza according to customer’s orders To clean the work areas, equipment, utensils, dishes and silverware. Package take-out foods and/or serve food to customers. Portion and wrap the food or place it directly on plates for service to patrons. Cashier To serve and entertain the customers that walk in into restaurant by taking their order and receive the payment 6.2.4 Schedule of Remuneration POSITION NO. Kitchen worker 3 MONTHLY EPF SOCSO SALARY CONTRIBUTION CONTRIBUTIO (RM) (RM) (11%) N (RM) (2.5%) 1500 132 30 TOTAL (RM) 4986 36 | P a g e Cashier 1 1200 110 25 1335 TOTAL 6321 6.3 MATERIAL PLANNING 6.3.1 Raw Materials Materials Quantity Safety Total Material Price / Total Price Stock Requirement Unit/Kg (RM) (RM) Crust Flour 1500 kg 50 kg 2000 kg 1.50 3000 37 | P a g e Yeast 30 kg 2 kg 32 kg 4.20 134.40 Corn meal 70 kg 5 kg 75 kg 1.35 101.25 Olive oil 50 L 2L 52 L 37.00 1924 Toppings Meats 60 kg 5 kg 65 kg 12.00 780 Pepperoni 40 kg 2 kg 42 kg 9.00 378 Seafood 30 kg 2 kg 32 kg 25.00 800 Vegetables 30 kg 2 kg 32 kg 20.50 656 Cheese 80 kg 5 kg 85 kg 45.00 3825 Tomatoes sauce 60 L 10 L 70 L 12.50 875 Condiments 20 kg 2 kg 22 kg 8.50 187 Salt 15 kg 2 kg 17 kg 0.80 13.60 Sugar 15 kg 2 kg 17 kg 1.20 20.40 1050 bottles 2.00 2100 Beverage Carbonated 1000 bottles 50 bottles drinks TOTAL 14,794.65 6.3.2 Packaging Materials Materials Quantity Unit Price (RM) Total Price (RM) Straw 40 2.50 100 38 | P a g e Tissues 100 2.80 280 Plastic Cup 3220 0.50 1610 Take away boxes 1600 1.00 1600 Plastic bags 2000 0.20 400 TOTAL 3990 6.3.3 List of Suppliers List of materials Suppliers Address LOT 37634, Jalan 6/37 A Taman Bukit Seafood Focal Marketing Sdn. Bhd Maluri, Mukim Batu 52200 Kuala Lumpur Meats 6, Jalan SS13/6, Subang Jaya Industrial BGS Trading Sdn. Bhd Estate 47500 Subang Jaya, Selangor Pepperoni Tomato sauce Spring Valley Enterprise No 35 Jalan Selesaria 4 Taman Gembira 58200 Kuala Lumpur 39 | P a g e Cheese Seasoning NO 4&5, Jalan SU 29, Selayang Utama ALCOFRESH Sdn. Bhd. Light Ind. Lot 68100 Selangor Fresh Herbs No. 201, Jalan Kip 6, Taman Vegetable Ever Fresh Cameron Sdn. Bhd. Perindustrian Kip, 52200 Kuala Lumpur, Malaysia Level 10 Menara Yayasan Tun Perak Carbonated Drinks Permanis Sdn. Bhd. No 200 Jalan Bukit Bintang 55100 Kuala Lumpur LOT PT 391 Batu 2 ¼ Jalan Cheras CKE Holdings 56100 Kuala Lumpur Kitchen Equipment CHEFHUB RESOURCES 25-GM Jalan Perdana 2/7 Taman SDN BHD Pandan Perdana 55300 Kuala Lumpur OBTECH CORPORATION No 5&7 Jalan TPK 2/6 Taman Packaging Stuff (M) SDN BHD Perindustrian Kinrara 47100 Puchong 6.4 MACHINE AND EQUIPMENT PLANNING TOTAL COST ITEM QUANTITY PRICE PER UNIT (RM) Dough Mixer 2 250 500 Dough Rounder 2 200 400 Pizza Peel 3 15 45 40 | P a g e Pizza Pan 6 15 90 Pizza Prep Tables 2 500 1000 Pizza Cutters 3 12 36 Dishes 20 20 400 Oven 3 2000 6000 Oven Mitts 3 10 30 Kitchen Cabinet 1 670 670 Freezer 2 1500 3000 Fridge 4 2000 8000 Kitchen Utensils 3 30 90 Cleaning Set 2 20 40 Storage Cabinet 1 580 580 Water Dispenser 1 600 600 Sink 2 115 230 Cash Machines 2 300 600 Dining table 7 500 3500 TOTAL 25811 41 | P a g e KITCHEN OFFICE 6.5 OPERATION LAYOUT PLAN KITCHEN PICK UP COUNTER DINING AREA CASHIERR R 42 | P a g e 6.6 BUSINESS AND OPERATION HOURS 6.6.1 Business Hour DAY TIME Monday – Friday 10.00 A.M. – 10.00 P.M Saturday – Sunday 10.00 A.M. – 11.00 P.M 6.6.2 Operation Hour 43 | P a g e DAY TIME Monday - Friday 8.00 A.M. – 5.00 P.M Saturday (Week 1 & 3) 8.00 A.M. – 12.00 P.M Sunday Close 6.7 OPERATIONS OVERHEAD NO. OVERHEADS COST (RM) 1. Repairs and maintenance 1,500 TOTAL 1,500 6.8 OPERATIONS BUDGET ITEM FIXED ASSETS EXPENSES (RM) MONTHLY EXPENSES (RM) OTHER EXPENSES (RM) 44 | P a g e Machinery and equipment 25811 Remuneration 6321 Raw Materials 14,794.65 Packaging Materials 3990 Repair and maintenance 1,500 Halal certification TOTAL 100 25,811 26,605.65 100 52,516.65 6.9 LICENSE, PERMITS AND REGULATIONS ITEM TYPE SSM License REMARKS SURUHANJAYA SYARIKAT MALAYSIA Jabatan Kemajuan Islam Halal Certification Regulation Malaysia (JAKIM) 45 | P a g e Dewan Bandaraya Kuala License for signboard License Lumpur (DBKL) EPF (Employee Provide KWSP Regulation Compulsory to all workers Fund) SOCSO (Social Security Regulation PERKESO Regulation Ministry of Health Act Organization Malaysia) Typhoid Injection 6.10 IMPLEMENTATION SCHEDULE NO. ACTIVITIES MONTH 1 1 Incorporation of business 2 Application for permit license 3 Searching for business 4 Renovation of premise 5 General briefing to personnel 2 3 4 5 6 7 8 9 10 11 12 46 | P a g e 6 Advertising and promotion launched 7 Procurement of machine and items needed 8 Installation of machines 9 Recruitment of workers 10 Departmental coordination 11 Briefing for all distribution channels 12 Monitoring and corrective action 13 Sales visit 14 Consolidation 47 | P a g e ADMINISTRATION PLAN 48 | P a g e 7. INTRODUCTION TO ADMINISTRATION. Administration is one of the most important part in running a business. It is to ensure the business can run smoothly. Managerial skills and capabilities are one of the factors which influence the growth, performance and survival of a business. Therefore, manager should have the administration function such as planning, controlling, organizing, and leading the company. The task of administration manager is to set the employees’ salaries, protect the employee’s welfare compensation, recruiting, provide the furniture and fitting in the office to build the employee comfortable working environment. The administration task also including plan and set the objectives or goals of the business and ensure the company achieve the goals that have been set successfully. The administration also arranges the organizational structure, do a working schedule, and calculate all budgets relating to administration department. Besides, the administration also responsible to ensure all of employees and staff get the acceptable and standard salaries like stated in the agreement and take care about employee welfare such as SOCSO, EPF and leaves such as medical leaves, emergency leaves, maternity leaves and annual leaves. Thus, in Personalizarre we see administration function as a crucial task where it compresses all the elements to make sure the effectiveness in terms of conducting organization activities. Our company, Personalizarre Pizza Enterprise, will focus on distribution and selling of our product, see that Malaysian demand on fast food are dramatically increases day by day due to various factors. By looking this as business opportunity, we chose to create this company that not only focusing in domestic demand but also create variation in order to fulfill the customers’ demand. 49 | P a g e 7.1 VISION, MISSION, MOTTO AND OBJECTIVES OF THE BUSINESS. VISION: Become a leading corporation at a globally level, offering products and service of superior quality. Improving the well-being of our customers, community and people connected to our enterprise and be the number one. MISSION: Providing choices of taste depending on the customers’ needs. Serving the best customize pizza in the world. Maintaining high standard quality of products and services and provide excellent experience to customers. BUSINESS OBJECTIVES: To ensure customer satisfaction and build a repeat-customer base. To achieve financial goals by reducing costs while growing profits at the same time. To improve position in the local market and strengthen brand. MOTTO: “Pizza for everyone”. 50 | P a g e 7.2 ORGANIZATIONAL CHART 51 | P a g e The organizational structure can be said as the backbone of the organizational management. Where, it showed the hierarchy of responsibilities of the organization itself. It is vital to know the hierarchy because it can show us who is responsible in each of the management field including the administration, finance, marketing and operation. It also makes the activities of the organization become smooth and efficient since we have determined which person will handle which scope of responsibilities and to whom shall that particular staff report for his or her progress of work. For Personalizarre Pizza Enterprise, we decided to use functional organization structure. The main reasons why we choose this structure are list as below. It can clearly show the chain of command that make the flow of work become easier since we know who in charge for a particular department. It can help the management team to solve directly the problem that occur since we have a representative for each department that will frequently monitor the progress. It will have the manager focus only each department. This can lead to an effective and efficient work since the manager will focus only one department. 52 | P a g e 7.3 LIST OF ADMINISTRATIVE PERSONNEL POSITION PERSONNEL STAFF MANAGER 1 ADMINISTRATION EXECUTIVE 1 MARKETING EXECUTIVE 1 OPERATIONAL EXECUTIVE 1 FINANCIAL EXECUTIVE 1 KITCHEN STAFF 3 CASHIER 1 TOTAL 9 53 | P a g e 7.4 SCHEDULE OF TASK AND RESPONSIBILITIES Position Staff manager Task and responsibilities Making decision and signing agreement. Must have a good communication skill to help solving employee’s problem. Administration executive Marketing executive Operational executive Financial executive Manage the activity so that it will be done smoothly. Motivate other manager to achieve goal. Record and manage the organization document. Give instruction other workers. Communicate and interact with the outsider. Helping general manager. Promote the product. Arrange strategy to attract customers. Provide new idea to enhance sell. Assist others to increase quality and quantity of productivity. Supervise the workers. Managing the operational budget. Control the relationship between the workers. Control the operational process. Collect and calculate company’s financial documents. Keep maintaining company’s profit. Planning for reducing cost and increasing profit. 54 | P a g e 7.5 SCEDULE OF RUMENERATION MONTHLY SALARY (RM) A EPF-11% (RM) B SOCSO-2.5% (RM) C TOTAL (RM) (A+B+C) 1 2200 242 55 2497 ADMINISTRATION EXECUTIVE 1 1800 198 45 2043 MARKETING EXECUTIVEE 1 1800 198 45 2043 OPERATION EXECUTIVE 1 1800 198 45 2043 FINANCIAL EXECUTIVE 1 1800 198 45 2043 POSITION NO. OF STAFF STAFF MANAGER TOTAL(RM) 10669 7.6 OFFICE EQUIPMENT AND FITTING. 55 | P a g e TYPE PRICE/UNIT (RM) 920 QUANTITY (UNIT) 2 TOTAL AMOUNT (RM) 1840 170 1 170 OFFICE FURNITURE 350 2 700 DOCUMENT CABINET 178 1 178 NOTICE BOARD 45 1 45 FIRE EXTINGUISHER 100 2 200 AIR CONDITIONER 1200 2 2400 CCTV 200 3 600 EMERGENCY LIGHT 170 3 510 FIRST AID KIT 35 2 70 COMPLETE DESKTOP PC SET PRINTER TOTAL 6713 7.7 LIST OF STATIONARY AND OFFICE SUPPLIES TYPE PRICE PER UNIT (RM) QUANTITY (UNIT) TOTAL (RM) 10.40 1 10.40 OFFICE FILE 5 4 20 OTHER - - 40 A4 PAPER TOTAL 70.40 56 | P a g e 7.8 ADMINISTRATION BUDGET ITEMS FIXED ASSET (RM) RENOVATION 15350 OFFICE EQUIPMENT AND 6713 MONTHLY EXPENSES (RM) OTHER EXPENSES (RM) FITTING SALARY (EPF & SOCSO) 10669 RENT 1500 UTILITIES 2350 STATIONARY & OFFICE SUPPLIES 70.40 BUSINESS REGISTRATION 450 INSURANCE 75 BUSINESS LICENSE/PERMIT 500 TOTAL 22063 14589.40 1025 57 | P a g e FINANCIAL PLAN 58 | P a g e Financial Plan 9.1 Introduction 9.1.1 Introduction of Financial Plan Every business must have its own financial plan that used as a budget, a plan for spending and saving future income. So, Financial Management is very important for the organization to manage all the organization’s funds. The financial management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the organization. It means applying general management principles to financial resources of the organization. It can be used statement to check and evaluate the organization’s performance that is crucial to its development, growth and survival. The financial manager is the person who is responsibility to in charge with the financial management. Financial plan is the step in the preparation of business plan. Financial plan incorporates all financial data derived from the operation budgets in example the marketing, production or operation and administrative budgets. The financial information from the operating budgets is then translated or transformed into a financial budget. The financial plan involves in determining the total project cost, choice of sources of financing and preparation on financial projection in terms of pro forma statements, which include cash flow, income statement and balance sheet. In addition, the financial plan should be supported by depreciation schedules for every fixed cost owned as well as amortization schedules for loan and hire purchase repayments. The financial plan is prepared after all budgets pertaining to marketing, operation, and administration (knows as operating budgets) is completed. Without financial plan, the cash flow for the business will be unclear and will cause future projects to be in a pinch as there is no trace of where the money is coming from and going to. This is to make sure all contributors know where their money is going and for what purpose to avoid profits loss. In short, financial report, the backbone of the company will help to keep tracks of incoming and outgoing money for future planning projects. 59 | P a g e 9.1.2 Important of Financial Plan To decide the amount of investment required to run the business To determine the internal and external financial resources To avoid the risk of capital inadequacy To measure the financial viability of the business before the real investment is undertaken To be as a direction for business implementation 60 | P a g e 9.2 Capital Expenditure Types of Fixed Assets Estimated Cost (RM) Estimated Economic Life (years) Administrative/Organisation Land & Building Office Equipment Renovation 6,713 15,350 5 5 Sales/Marketing Signboard 2,000 5 Machines and equipment 25,811 5 Total 49,874 Operations/Technical 61 | P a g e 9.3 Pre-Operating and Working Capital Projection Pre-Operating & Incorporation Costs (oneoff) Development cost Business incorporation Deposit (rent, utilities, etc.) Other pre-operating & incorporation costs Sales & Marketing Costs (monthly) Pamphlets Business Card Advertising General & Administrative Costs (monthly) Salaries, Wages, EPF & SOCSO Phone & Wifi Utilities Rental Operations & Technical Costs (monthly) Purchase of Raw Materials/Goods Carriage Inwards Salaries, Wages, EPF & SOCSO Operation Overhead Packaging Supplies Other Expenditure (annually) insurance, license, road tax office supplies Total Pre-Operations & Working Capital Expenditure RM 5,100 250 30 120 10,669 200 2,350 1,500 14,795 6,321 1,500 3,990 575 1,044 48,444 Annual Increase in Working Capital (if any) Year 2 Year 3 5% 5% Tax Rates Year 1 Year 2 Year 3 26% 26% 26% 62 | P a g e 9.4 Sales and Purchase Projection Sales Projections January 2020 February 2020 March 2020 April 2020 May 2020 June 2020 July 2020 August 2020 September 2020 October 2020 November 2020 December 2020 Total 2020 Total 2021 Total 2022 Sales Collections In the month of sales One month after sales Two months after sales Ending Inventory of Raw Materials End of 2020 End of 2021 End of 2022 RM 79,390 77,244 73,789 70,220 69,975 72,349 74,529 73,729 70,678 71,978 75,658 77,928 887,467 976,215 1,064,962 50% 50% 0% RM 300 500 700 Purchase Projections January 2020 February 2020 March 2020 April 2020 May 2020 June 2020 July 2020 August 2020 September 2020 October 2020 November 2020 December 2020 Total 2020 Total 2021 Total 2022 Purchase Payments In the month of purchase One month after purchase Two months after purchase Ending Inventory of Finished Goods End of 2020 End of 2021 End of 2022 RM 14,795 14,795 14,795 14,795 14,795 14,795 14,795 14,795 14,795 14,795 14,795 14,795 177,540 195,294 213,048 50% 50% 0% RM 3,000 5,000 6,000 63 | P a g e 9.5 Project Implementation Costs Capital Expenditure Land & Building Office Equipment Renovation Cost Signboard Machines and equipment Working Capital 3 months Sales & Marketing Costs (monthly) General & Administrative Costs (monthly) Operations & Technical Costs (monthly) Pre-Operating & Incorporation Costs (one-off) Other Expenditure (annually) Provision for 10% Contingencies TOTAL Sources of Financing Cash 6,713 Cash 15,350 Loan Loan Cash 2,000 Cash Cash Cash Cash 25,811 Loan Cash Cash Cash 1,200 44,157 79,818 5,100 1,619 Cash Cash Cash Cash Cash 18,015 Cash 199,783 9.6 Sources of Project Financing 64 | P a g e Capital Expenditure Own Contributions Existing F. Cash Assets Cost Land & Building Office Equipment Loan HirePurchase 6,713 6,713 Renovation 15,350 15,350 - 2,000 2,000 - Signboard Machines and Equipment 25,811 25,811 - Working Capital Sales & Marketing Costs (monthly) 1,200 1,200 General & Administrative Costs 44,157 (monthly) 44,157 Operations & Technical Costs (monthly) 79,818 79,818 Pre-Operating & Incorporation Costs 5,100 (one-off) 5,100 Other Expenditure (annually) 1,619 1,619 Provision for Contingencies 18,015 18,015 158,62 TOTAL 199,783 2 Proposed Terms of Loan (if required) Interest rate Loan tenure (years) 10% 5 41,161 Proposed Terms of Hire-Purchase (if required) Interest rate 5% Tenure (years) 8 9.7 Loan Amortization and Hire- Purchase Schedules Amount (RM) LOAN AMORTIZATION SCHEDULE 41,161 65 | P a g e Interest Rate Duration (yrs) Method Year 1 2 3 4 5 6 7 8 9 10 10% 5 Annual Rest Instalment Payments Principal Interest Annual Payments 6,742 4,116 10,858 7,416 3,442 10,858 8,158 2,700 10,858 8,974 1,884 10,858 9,871 987 10,858 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Principal Balance 41,161 34,419 27,003 18,845 9,871 0 0 0 0 0 0 9.8 Depreciation of Fixed Assets Type of Fixed Asset Cost (RM) Office Equipment 6,713 66 | P a g e Depreciation Method Straight Line Economic Life (yrs) 5 Annual Accumulated Year Depreciation Depreciation 1 1,343 1,343 2 1,343 2,685 3 1,343 4,028 4 1,343 5,370 5 1,343 6,713 6 0 0 7 0 0 8 0 0 9 0 0 10 0 0 Type of Fixed Asset Cost (RM) Depreciation Method Economic Life (yrs) Annual Year Depreciation 1 3,070 2 3,070 3 3,070 4 3,070 5 3,070 6 0 7 0 8 0 9 0 10 0 Type of Fixed Asset Cost (RM) Book Value 6,713 5,370 4,028 2,685 1,343 - Renovation 15,350 Straight Line 5 Accumulated Book Value Depreciation 15,350 3,070 12,280 6,140 9,210 9,210 6,140 12,280 3,070 15,350 0 0 0 0 0 - Signboard 2,000 67 | P a g e Depreciation Method Straight Line Economic Life (yrs) 5 Annual Accumulated Year Depreciation Depreciation 1 400 400 2 400 800 3 400 1,200 4 400 1,600 5 400 2,000 6 0 0 7 0 0 8 0 0 9 0 0 10 0 0 Type of Fixed Asset Cost (RM) Depreciation Method Economic Life (yrs) Annual Year Depreciation 1 5,162 2 5,162 3 5,162 4 5,162 5 5,162 6 0 7 0 8 0 9 0 10 0 9.9 Pro-Forma Statement Book Value 2,000 1,600 1,200 800 400 - Machines and equiment 25,811 Straight Line 5 Accumulated Book Value Depreciation 25,811 5,162 20,649 10,324 15,487 15,487 10,324 20,649 5,162 25,811 0 0 0 0 0 Cash Flow 68 | P a g e 9.10 Pro-Forma Income Statement 69 | P a g e 35,339 36,865 September 35,989 35,339 October 37,829 35,989 November 38,964 37,829 December 2020 1,619 Other Expenditure 0 Interest 144,809 147,653 144,809 2,844 ENDING CASH BALANCE 144,809 CASH SURPLUS (DEFICIT) 36,851 BEGINNING CASH BALANCE 54,974 TOTAL CASH OUTFLOW 0 343 Interest Tax Payable 562 Principal Loan Repayment: 0 Principal Hire-Purchase Repayment: Purchase of Fixed Assets 19,209 Operations & Technical Expenditure 400 14,719 49,874 5,100 General & Administrative Expenditure Sales & Marketing Expenditure Pre-operating & Incorporation Expenditure CASH OUTFLOW Capital (Cash) 183,340 147,653 35,687 42,630 0 343 562 0 0 26,606 14,719 400 78,317 216,226 183,340 32,887 42,630 0 343 562 0 0 26,606 14,719 400 75,517 245,601 216,226 29,375 42,630 0 343 562 0 0 26,606 14,719 400 72,005 273,069 245,601 27,468 42,630 0 343 562 0 0 26,606 14,719 400 70,098 301,601 273,069 28,532 42,630 0 343 562 0 0 26,606 14,719 400 71,162 332,410 301,601 30,809 42,630 0 343 562 0 0 26,606 14,719 400 73,439 363,909 332,410 31,499 42,630 0 343 562 0 0 26,606 14,719 400 74,129 393,483 363,909 29,574 42,630 0 343 562 0 0 26,606 14,719 400 72,204 422,181 393,483 28,698 42,630 0 343 562 0 0 26,606 14,719 400 71,328 453,369 422,181 31,188 42,630 0 343 562 0 0 26,606 14,719 400 73,818 487,532 453,369 34,163 42,630 0 343 562 0 0 26,606 14,719 400 76,793 487,532 0 487,532 560,754 0 4,116 6,742 0 0 49,874 1,619 311,875 176,628 4,800 5,100 1,048,286 443,734 404,770 39,695 36,865 37,265 August 199,783 37,265 36,175 July TOTAL CASH RECEIPT 36,175 34,988 June 41,161 34,988 35,110 May 39,695 0 35,110 36,895 April 41,161 36,895 38,622 March Loan Cash Sales Collection of Accounts Receivable 38,622 39,695 February 158,622 January 158,622 CASH INFLOW MONTH Pre-Operations 2020 MONTHLY CASH FLOW 0 0 923,742 487,532 436,210 538,293 0 3,442 7,416 - - 1,700 335,236 185,459 5,040 974,503 488,108 486,396 2021 0 0 1,411,909 923,742 488,166 573,098 0 2,700 8,158 - - 1,785 360,431 194,732 5,292 1,061,264 532,481 528,783 2022 Years 2020 2021 2022 70 | P a g e Sales Less: Cost of Sales (Notes 1 & 2) Gross Profit 887,467 321,134 566,333 976,215 347,075 629,140 Less: Expenditure Pre-Operating & Incorporation Expenditure General & Administrative Expenditure Sales & Marketing Expenditure 176,628 4,800 185,459 5,040 194,732 5,292 1,619 1,700 1,785 4,116 4,813 191,976 374,357 0 374,357 374,357 3,442 4,813 200,454 428,686 0 428,686 803,043 2,700 4,813 209,322 482,370 0 482,370 1,285,414 Other Expenditure Interest on Hire-Purchase Interest on Loan Depreciation of Fixed Assets Total Expenditure Net Income Before Tax Tax Net Income After Tax Accumulated Net Income Note 1 Cost of Sales Opening Inventory of Finished Goods Add: Total Production Cost (Note 2) 0 324,134 1,064,962 373,270 #VALUE! 691,692 #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! 3,000 5,000 349,075 374,270 0 Less: Ending Inventory Note 2 Raw Materials Opening Inventory Add: Current Year Purchases Add: Carriage Inwards Less: Ending Inventory Raw Materials Used Labour Salaries, Wages, EPF & SOCSO Factory Overhead Depreciation of Fixed assets (Operations) Operation Overhead 3,000 321,134 5,000 347,075 6,000 373,270 #VALUE! #VALUE! 0 177,540 300 195,294 500 213,048 300 177,240 500 195,094 700 212,848 #VALUE! 75,852 79,645 83,627 5,162 5,162 5,162 18,000 18,900 19,845 #VALUE! 71 | P a g e Packagin g Supplies 47,880 50,274 52,788 Total Factory Overhead 71,042 74,336 77,795 Total Production Cost 324,134 349,075 374,270 #VALUE! #VALUE! 9.11 Pro-Forma Balance Sheet 72 | P a g e 2020 2021 2022 39,899 29,924 19,950 5,100 44,999 5,100 35,024 5,100 25,050 300 500 700 3,000 38,964 487,532 529,796 5,000 40,676 923,742 969,918 6,000 44,373 1,411,909 1,462,982 574,795 1,004,943 1,488,032 158,622 374,357 532,979 158,622 803,043 961,665 158,622 1,285,414 1,444,035 34,419 27,003 18,845 ASSETS Non-Current Assets (Book Value) Land & Building Other Fixed Assets Other Assets Deposit Current Assets Inventory of Raw Materials Inventory of Finished Goods Accounts Receivable Cash Balance TOTAL ASSETS Owners' Equity Capital Accumulated Income Long-Term Liabilities Loan Balance Hire-Purchase Balance Current Liabilities Accounts Payable TOTAL EQUITY & LIABILITIES 34,419 27,003 18,845 7,398 16,275 25,152 574,795 1,004,943 1,488,032 #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! 9.12 Financial Performances 73 | P a g e Financial Ratio Analysis 2020 2021 2022 2023 2024 LIQUIDITY Current Ratio Quick Ratio (Acid Test) 72 71 60 59 58 58 #VALUE! #VALUE! #VALUE! #VALUE! EFFICIENCY Receivable Turnover Inventory Turnover 11 195 12 126 12 111 #VALUE! #VALUE! #VALUE! #VALUE! PROFITABILITY Gross Profit Margin Net Profit Margin Return on Assets Return on Equity 63.81% 42.18% 65.13% 70.24% 64.45% 43.91% 42.66% 44.58% 64.95% 45.29% 32.42% 33.40% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! SOLVENCY Debt to Equity Debt to Assets 7.85% 7.28% 4.50% 4.31% 3.05% 2.96% #VALUE! #VALUE! #VALUE! #VALUE! 90 124 178 #VALUE! #VALUE! Time Interest Earned Break-even 2020 2021 2022 74 | P a g e Analysis Total projected sales(RM) Total variable costs (cost of sales) Contribution margin Contribution margin ratio Fixed costs Total costs Net Profit Break-even sales Percentage of break-even to sales 887,467 976,215 321,134 347,075 373,270 #VALUE! 566,333 629,140 691,692 #VALUE! #VALUE! 64% 64% 65% #VALUE! #VALUE! 191,976 513,110 374,357 200,454 547,529 428,686 209,322 582,592 #VALUE! 482,370 #VALUE! 300,834 311,037 322,282 #VALUE! #VALUE! 30% #VALUE! #VALUE! 34% 32% 1,064,962 #VALUE! #VALUE! #VALUE! 9.13 Financial Ratio Analysis 75 | P a g e 76 | P a g e 77 | P a g e CONCLUSION 78 | P a g e CONCLUSION We are grateful to finish this business plan. We have gone through lots of new experiences and it is very beneficial for all of us in participating in this business. We hope that our business will be progressed smoothly in the future. Our target is that we want to achieve high profit in the involvement of this business even though there are many rivals exist. Unfortunately, with the good cooperation with all the subordinates we manage to compete with the rivals as fair and square. We also hope that with our dedication and hard work, we will achieve our vision to become the number one local pizza’s restaurant in Malaysia. In addition, we know that pizza making industry is more familiar nowadays. Besides that, we hope can produce the great pizzas that no one can match with our product. We will provide full responsibility and commitment; there is no doubt that we will achieve all these things. We are also encouraged to take any chance that directly or indirectly in order to increase and succeed our business performance in the future undertakings. 79 | P a g e APPENDICES 80 | P a g e PARTNERSHIP AGREEMENT 81 | P a g e PARTNERSHIP AGREEMENT With reference to the Partner Act 1961 (Revise 1974), this agreement is lawfully made between the partners of Personalizarre Pizza Enterprise. The reason of this partnership agreement is made in order to make sure that all the business operation run accordingly to the schedule and the main objective of the business can be achieved. All the partners as below within the business organization make this agreement in front of the lawyer, (Mr. Mahmud) that our company have selected to represent us. It is hereby declared that all the partners as mentioned below have witnessed and agreed to accept all terms, conditions and regulation stated as follow: This partnership is registered under the name of Personalizarre Pizza Enterprise. The partners have also agreed to accept the position in Personalizarre Pizza Enterprise as enlisted: MOHAMMAD FAIZ BIN JAMAL GENERAL MANAGER ILYANA BINTI AMRAN ADMINISTRATION EXECUTIVE MOHD IZZAT WAFI BIN MD YAZI MARKETING EXECUTIVE NUR SYUHADA BINTI AHMAD TERMIZI OPERATION EXECUTIVE NAJIHAH BT. MOHD TAHIR FINANCE EXECUTIVE It is also agreed that all profit sharing will be based on the capital contribution of each partners. Should the company suffer any loss of which the negligence cause by anyone of the partners that partner should be responsible for the loss. All the money owns by the partnership or money received on behalf of the partnership must be credited to the agreed partnership current bank account. It is also agreed that if in case where any of the partners want ro withdraw from the partnership then she/he must give a one month notice to the partners. Each of the partners: 82 | P a g e 1. Must have and act in good manners and has faith and be truth worthy between each partner in all business matters. 2. Must give full efforts in any way for the success of the company. 3. Must keep all information relating to the business confidential from people outside the business organization. 4. Must settle al personal problems without involving the company. All the partners are strictly forbidden (except with the consent from all the partners) to: 1. Give or transfer own share to the public or people outside the business organization. 2. Accept or borrow or lend money owned by the business to their people outside the business organization except regarding on business matter. 3. Accept or borrow money owned by the business for personal use. If any partners have borrowed any money or assets, payback or recovery must be made in one month from the date borrowed without any interest. 4. Disposed any assets or any liability such as debts, money or others owned by the partners. 5. If any partner dies or paralyzed that may bring difficulty or his/her to perform his/her work, the relative of partner must give a written notice in between 45 days to other partners if she/he wants to become a partner, if there is no notice between those periods, the relative of partner will receive back the capital contributed by deceased ot the paralyzed partner according to agreed proportion. This agreement can be changed or dissolved if agreed by all the partners under a memorandum signed by all the partners. It is also agreed that any action that may not fall under the agreement can be taen action or revised under the partnership act 1961 (revised 1974). 83 | P a g e Signatures: (Mohammad Faiz Bin Jamal) (Ilyana Binti Amran) General Manager Administration Executive (Mohd Izzat Wafi Bin Md Yazi) (Nur Syuhada Binti Ahmad Termizi) Marketing Executive Operational Executive (Najihah Binti Mohd Tahir) Financial Executive 84 | P a g e
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RM 303,264= RM 348,754ENT 300 I FARA’NA DESIGNS Page 47 3.7 MARKETING STRATEGIES Marketing strategy is to enable business to plan for its limited resources in order toachieve stated marketing objective and also is the key to deliver customer satisfactionyet provide business with a competitive advantage. This is our business marketingstrategy that will be carried out to promote our product to the public generally in Malaysiawhich is: 1) Product Strategy Our business is providing curtains service with variety of designs. We innovating the existing product that only have custom made (made in order). This will differentiate our product with existing product. Our product is focus on: Quality In order to satisfy the customer, our business focus more to the quality of the product. If the customer satisfy with the quality of our product, they will buy again in the future then our business will have a regular customer. Packaging For packaging, we use a plastic hanger that is safer than a plastic bag. Plastic hanger is more flexible and easy to handle. Labelling For labeling, we provide detail about our business and we also provide information about the fabric material and designs of our product, therefore our customer can knows about the uniqueness of our product.2) Price Strategy For pricing strategy, we has set up that our price is almost similar to the competitor price. This will help our business to compete with the competitor because with the same price, customer can have a same product but with variety of service and also provided service. The purpose of this pricing strategy is to attract a potential customer to become a regular customer to our business.ENT 300 I FARA’NA DESIGNS Page 48 3) Place Strategy Fara‟na Designs allocated at No.15, Jalan Plumbum Q7/7 Seksyen 7, 40000 Shah Alam, Selangor.4) Promotion Strategy Fara‟na Designs use the distribution of flyers methods for promotion purpose. We distribute the flyers to all the residents area .Other than that, we use business card to spread the word about our product to the public. This is an important element in marketing plan. Therefore, we can attract our potential customer in the target market. This is our strategies, as follows: Bunting This bunting will be place in front of the main entrance to the manager office at the manufacture premises. Flyer This flyers will give to the houses that located a stone throw away from our store or location business. Indoor Advertising These types of ads more targeted to areas in the business premises such as shopping centres and business premises where people have to wait. Once the media is merely billboard advertisement billboards small version. Sure to advertise one must pay to contract a year or two. Not for the small budget. Discount We use our strategy by giving to the customer the discount during festivals and the events for example, in March , the demand for the curtains design is high because of the promotion that we provide one month before the events occur.ENT 300 I FARA’NA DESIGNS Page 49 3.8 MARKET BUDGETThis is the marketing budget for every marketing expense that will be used for themarketing plan. ITEMS FIXED ASSET MONTHLY OTHER TOTAL EXPENSES EXPENSES EXPENSES EXPENSESSignboard (RM)Banner 1,000 (RM) (RM) (RM)Business Card - - -Flyers - - 2,130Bunting - - 200TOTAL - - 100 1,000 - 800 - 30 1,130ENT 300 I FARA’NA DESIGNS Page 50
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Give instruction other workers. ... Communicate and interact with the outsider. ... Helping general manager.
RM 303,264= RM 348,754ENT 300 I FARA'NA DESIGNS Page 47 3.7 MARKETING STRATEGIES Marketing strategy is to enable business to plan for its