Professional Documents
Culture Documents
ENTREPRENEURSHIP
ETR 300
PREPARED BY:MUHAMMAD YUSNIZA YUNUS ASLIN ABD SANI NOR HAFIZAH ZAINAL ARIF NOREHAN MOHD IDRIS NORAFIDAH RQSLI 2000469128 2000469254 2000469684 2000468816 2000468942
PREPARED TO:PROF. MADYA BAHARUDIN BIN ISMAIL DATIN HAZARAH BIT MUHAMMAD
ACKNOWLEDGEMENT
In the name of ALLAH, The Most Beneficent, The Most Merciful First and foremost, we would like to express our thanks and gratitude to our lecturer, Prof. Madya Baharuddin for the advice and guidance in order to us to explore something new in our life. Thank also to all owner flower shop that has given the cooperation to us during our survey time. To our family and not to forget to our friend for their cooperation, encouragement, moral support, pride and joy towards completing this precious project Wc also would like to thank to other whose names not mentioned on the team credits but made a significant contribution upon the compilation of this Lovely Blossom business plan. Last but not least, thanks again to the people and groups mentioned above and we as ETR 300 student are very grateful to them for their contribution and cooperation that helps a lot in the completion of this business plan.
TABLE OF CONTENTS
1..EXECUTIVE SUMMARY 2. PURPOSE OF THE BUSINESS PLAN 3. BUSINESS BACKGROUND 4. SHAREHOLDER BACKGROUND 5.ADMINSTRATIONPLAN 6. MARKETING PLAN 7. OPERATION PLAN 8. FINANCIAL PLAN 9. SUMMARY 10. APPENDICES
EXECUTIVE SUMMARY
For fulfilling the Business Plan (ETR 300) we came up to make a type of business. We choose to run this company; LOVELY BLOSSOM SDN BHD is fully by Bumiputera. This nature of business isflowershop and our products are mostly based on flowers. Our location of this business is G31, Ground Floor, PKNS, 40450 Shah Alam, Selangor. We have chosen this location because of its strategic site. It is situated in place of fully community, near the 5 Stars Hotel and easy to find. From what we have planned, we have decided to start our business on 1st January 2006. There are a few factor affecting our decision in selecting this business. a) We want to gain maximum profit through the business because there is no one to do this business like this. b) We want to be thefirstcompany with mis type of business. We know that mis business has varied bright future because of bright demand, which rapidly nowadays. The increment of the tourist from outside and local also will be the encouragement for us to do this business. Our products are sold to all customers, either tourist from local or outside. In running this business, we have 9 workers consists of general manager, administration, marketing, operation and financial manager. Our business will operate from Monday to Sunday. So, our business is operating everyday and will operate from 10.30am until 10.30pm.
Our future prospect of this business is to open as many branch as we can. To earn more profit and we wish to expand our company all over Malaysia and also over the world There are 5 shareholders on this business. For the General Manager, he gives RM 20000.00 and for each shareholder gives RM10000.00. Besides that, we also apply loan from Maybank that is RM50000.00.
The main purposes of preparing a business plan are: 1. To evaluate the project viability and growth potential. 2. To appry for loans or financing facilities from relevant financial institutions. 3. To act as guideline for the management of the proposed business especially in administration, marketing, operation and financial 4. To allocate business resources effectively.
BACKGROUND OF BUSINESS
BUSINESS NAME
BUSINESS ADDRESS
CORRESPONDENCE ADDRESS
DATE COMMENCEMENT OF BUSINESS DATE OF BUSINESS REGISTRATION BUSINESS REGISTRATION NUMBER NAMA OF BANK BANK ACCOUNT NUMBER
EQUITY CONTRTBUTTON GENERAL MANAGER ADMINISTRATION MANAGER MARKETING MANAGER OPERATION MANAGER FINANCIAL MANAGER : RM 20,000 : RM 10,000 : RM 10,000 : RM 10,000 :RM 10,000
BACKGROUND OF PARTNERS
PARTNER 1 (GENERAL MANAGER) NAME VC NO DATE OF BIRTH AGE GENDER PERMANENT ADDRESS Mohammad Yusniza Bin Yunus 820111-10-5045 11 Jan 1982 21 years Male No 407 Block 17 Sec 6, 40000 Shah Alam, Selangor PHONE NO ACADEMIC QUALIFICATION 012-2247225 Diploma In Foodservice Management MARTTALSTATUS -eeRRENTnJOB Single
Student
PARTNER 2 (ADMINTSTRATFON MANAGER) NAME 1/C NO DATE OF BIRTH AGE GENDER PERMANENT ADDRESS Norehan Binti Mohd. Tdris 820712-08-5828. 12 July 1982 21 years Female 419FeldaTrolakUtara, 35600 SungkaiPerak PHONE NO ACADEMIC QUAUFICATTON 019-5739624 Diploma In Foodservice Management MARITAL STATUS Single
CURRENT JOB
Student
PARTNER 3 (MARKETING MANAGER) NAME VC NO DATE OF BIRTH AGE GENDER PERMANENT ADDRESS Nomfidah Rinti Rosli 820517-10-5176 17 May 1982 21 years Female 28 AKampung Pasir, XJlu Yam Bharu, 444300 Selangor PHONE NO ACADEMIC QUALIFICATION 012-3551475 Diploma In Foodservice Management MARITAL STATUS Single
CURRENT JOB
Student
PARTNER 4 (OPERATION MANAGER) NAME I/C NO DATE OF BIRTH AGE GENDER PERMANENT ADDRESS Aslm Rinti Abd Sani 821205-01-5248 5 Dec 1982 21 years Female 74 Man Wawasan 3, Kg. MelayuBaru, 81550 GelangPatah, Johor PHONE NO ACADEMIC QUALIFICATION 013-7268401 Diploma In Foodservice Management MARITAL STATUS Single
CURRENT JOB
Student
PARTNER 5 (FINANCIAL MANAGER) NAME VC NO DATE OF BIRTH AGE GENDER PERMANENT ADDRESS NorHafizah Binti Zainal Arif 820529-05-5356 29 May 1982 21 years Female 334, Taman Bahagia Delima, 72000 Kuala PilahN.Sembilan PHONE NO ACADEMIC QUALIFICATION 013-3728789 Diploma In Foodservice Management MARITAL STATUS Single
CURRENT JOB
Student
10
AGREEMENT OF PARTNERSHIP
This letter will be sign by all the shareholdWin LOVELY BLOSSOM SDN. BHD. This letter is about our agreement before staring our business. It must be unanimous consents from all existing partner between: 1 NAME IC NUMBER ADDRESS : Mohammad Yusniza bin Yunus 820111-10-5045 No 407 Block 17 Sec 6, 40000 Shah Alam, Selangor
11
Norehan binti Mohd Idris 820712-08-5828 419 Felda Trolak Utara 35600 Sungkai, Perak
111
Nor Hafizah Binti Zainal Arif 820529-05-5356 : 334, Taman Bahagia Delima, 72000 Kuala Pilah, N.Sembilan
IV
Norafidah Binti Rosli 820517-10-5176 28 A Kampung Pasir, Ulu Yam Bharu, 44300 Selangor
: Aslin binli Abd Sani : 821205-01 -5248 : 74 Jalan Wawasaa Kg, Melayu Baru 81550 Gelang Patah, Johor
We all agreed to be sliareholders on handling Hw business and agreed to follow all the term and condition stated below: a) This agreement will started on 1st JANUARY 2006 and will continue until a certain time as agreed. b) This business will be located at G31 Ground Floor, PKNS Complex, 40450 Shah Alam, Selangor. c) Each of the shareholders will contribute RM 10,000,except the General Manager, he will contribute RM 20,000 for the asset in this company. The sum of assets is RM 60,000. d) Each of the shareholders will have their post in this company based on qualification of handling on specific tasks not on our share or capital. e) f) The profit gained will be divided equally except for the general manager. All agreement in this paper can be rewrite or modified in one memorandum that contains the changes made in memorandum and must be agree by all the shareholders.
12
AH of the shareholders must give all commitment and full support and also us& all their effort expertise and their knowledge to heh? buQd and widen the business. A H of the shareholders are governed by the partnership act 1961. Dissolution of the shareholders must be by a unanimous consentfromall existing shareholders or majority voice. The deal or bankruptcies of any shareholders that win cause mis agreement liquidated are abundant. If tliere is death or any accident to the shareholders that wiH be stop him to continue this business, cither one of the agreed shareholders or his family can claim for their compassion.
13
Usually, in such organization, administration department plays an important role in ensuring the business to run smoothly and systematicaEy. This administration plan is one of the plans in our business organization. Our company may face a lot of problem without this administration functions. This plan is a total control to this organization so that we can result in the highest level of productivity and services in effective and efficient ways. Each organization in the business has it own objectives and mission as to improve the business capability. This objectives and missions also are needed to make sure the establishment the business achieves its aim to become firm and popular in this field.
14
ORGANIZATION MISSION
Every organization must have their mission in order to achieve goal. Our missions for Lovely Blossom are: 1. To get maximum profit 2. To be the first entrepreneur running in this business. 3. To be successful entrepreneur in this type of business. 4. To help increase our economy level.
15
ORGANIZATIONAL OBJECTIVES
It is know that administration plan is crucial part in any business Without a systematic management, all of the business operation will not run smoothly. That is why in Lovely Blossom, a systematically plan has been planned to ensure that mis company will work smoothly as we want. To ensure the organization smooth, administration department will try the best to achieve goal This department will also not forgetting the needs and
requirements for the holders We try to build good spirit in working and always give the best to all of our shareholders while they doing the job To match with our concept, we will ensure that our services are the best and satisfaction guaranteed This is not just based on our flower but also to our services,
because to us. without the customer, others will never known us At the first step of our business, we try to tackle all of our difficulties and weakness, beside that we are trying to get the maximum profit as we can from this
'rolling stone' of ours Our product and services is the best among all
16
ORGANIZATION STRATEGIES
To make sure our company objectives become reality, strategies are important element for a business company. An effectives and planned strategy will make a company operate smoothly to achieve die great profits. Our strategies are: 1. To create and prepare the organization's objectives by developing a company policies and strategies so that this business can achieve its goals efficiently and effective ways. 2. Job is divided according to qualification in order to ensure the right person handles every task smoothly. 3. To plan marketing program and the type of services that we should provide by giving reasonable price. This is because price and cost controlling arc important aspects to be given priority in order to avoid loss and gaining profit. 4. To make sure our quality of product and services and selling can attain customer satisfaction and try to attract competitor's customer. 5. To identify the problems arise and the competitors that existed in the business. 6. To measure the organization performance whether it is increasing or decreasing. 7. To maintain clean image so that customers is attracted with our services. 8. All decisions and controlling should be done in the organization's meeting 9. To ensure all tasks is being carried out smoothly and also ensuring all workers communicate among themselves 10. Try to avoid dissatisfactions among the shareholders.
17
11. Monthly meeting with the shareholders to identify whether there are problems with their works. 12. Avoid trouble or problems while dealing with supplier. 13. Increase customer's confidence when buying our products by giving good services. ] 4. Progress an efficient management system, discipline and competitive.
18
LOCATION PLAN
'^Sto*.^
/ -' T^kf
We are here
19
LOCATION PLAN
B US1NESS ADDRESS:
INFRASTRUCTURE: 1. Transportation PKNS is the center of business place, and near with the other shopping complex, so people can easily go there. Beside that, public transportation also provided. 2. Utilities Public phone is located everywhere Near with the others shopping complex Surau is provided
20
L
Administration Manager Norehan Mohd Idris
_
Operation Manager AslinAbdSani NorHafizahZainalArif
cs
Norafidah Rosli
General Worker
NO. OF WORKER 1
QUALIFICATION
SOURCES
Dip. In Foodservice management Dip. In Foodservice management Dip. In Foodservice manaaement Dip. In Foodservice manaaement Dip. In Foodservice management SPM
Shareholder
Administration Manager
Shareholder
Marketing Manager
Shareholder
Operation Manager
Shareholder
Financial Manager
Shareholder
Employees
Xone
LIST OF ADMINISTRATION POST AND THEIR TASK MAIN TASK As the represented of the company Managed all the final management that is done by the shareholder Always fair to all the employees Try to solve the pioblem with the help of the shareholders to achieve the company's goal Always known what's going on the company Rule the general management of the business to be parallel with the customer's desires Administration Manager Handle all the administration problems Calculates all the administration budget and try to minimize budget Prepares problems Sets up all the remuneration and all the managers task easier Marketing Manager Ensure that employees welfare is protected Search for new marketing chances Plan a new and also improved strategy yearh Anah zed the company 's potential in its growth -I the structures the administiation
Explore the weakness and also the strength of the company and try to make an improvement
Operation Manager
Estimate all the operation cost and budgets Make certain that all the production process is in good situations
Define all operations needed yearly Handles the suppliers and make good
impression of the company to them Finance Manager Prevents overflow money Make certain that all accounts are in well balanced and stable Foresee the profit and loss of the business yearly Plans and predicts on how to get finance sources to make this business success Employees Formulate the finance sheets yearly Help operation manager works Do the job with the good services Always gives the good services and tiy to help the management staff improve the companies
24
REMUNERATION TABLE
POST General Manager Administration Manager Marketing Manager Operation Manager Financial Manager Employees NO. OF STAFF 1 SALARYAVAGE PER MONTH 1200 EPF (12%) RM144 SOCSO (2%) RM24 TOTAL RM1368
900
RM108
RM18
RM1026
900
RM108
RM18 -
RM1026
900
RM108
RM18
RM1026
900
RM108
RM18
RM1026
500
RM60
RM10
RM570
TOTAL
5300
636
106
RM6042 i
25
Salary
In our company, salaries are given at the end of the month. So it is easy for a company to measure the expected salary for every worker. If the business showing an advance and the payment is made, changes in salary will be considered. Increasing of salary is depends by staff productive and company profit. Work hour
Our company gives 1 day's holiday for every week. Worker can choose any day that they want and this day is fixed for two month. Workers only can change their off day after month because the work schedule only change after two month. Day chosen also depend on worker shift. Medical leave
Workers can have a chance at most six day off with full salary if workers give medical certificatefroma business panel clinic. Annual leave
Leave application must be done a week before the date. Annual leave for management department are 20 days and general worker are 114 days. This annual leave is given by agency and excluding the emergency leave Bonus
Bonus will be given to the workers. Bonus are given two time a year but the bonus only given for the woiker who have been woik at least six month. The bonus will be given in the form of half
26
EMPLOYEES INTENSIVES In every company, there will be intensrves for their employees. These necessities are important as it according to the employees commitment and also rules from the government. In "Lovely Blossoms" the employees will get more incentive from the management staff. The reason is to make the employees work hard and improve their productivity and performance of work. These are the incentives that are been given to our employees: Bonus
Employees will be given bonuses to all workers if the company has more profit will give half from the salaries M.C or Medical Leaves
All the staff allowed taking medical leaves if they are sick. The M.C certificate must get from the hospital, clinic or any pharmacy that the staffs go. Therefore the management staff will take the certificate as the proof and to be kept as the record EPF
EPF are charge 12 percent from salaries and it is the saving account for the workers from the company. It is long term and it can be used for old days
socso
SOCSO are given to all employees where the charge about two percent from the salaries. It can protect to all employees and leads them to a bright future. It also may used for the emergency cases and it can help in solving the workers problem
27
ITEM Desk Meeting Desk Telephone Facsimile Chair " Cash Register
! TOTAL
2700
28
ADMINISTRATION BUDGET
ITEM
Fixed asset; Renovation Fixtures Computer Monthly expense; EPF SOCSO Rent___ BUI; 1) Watei I) Electricity 3) Telephone Other expenses: Deposit: 1) Water 2) Electricity 3) Telephone 4) Rental Registration Insurance l)van Road Tax Business License Company Register
i
L_
1203
240C
^ ~1A
TOTAL
17200
8042
96504
8810
29
YEARl(RM)
YEAR2(RM)
YEAR3(RM)
63600 7632 1272 ~| " " _ 9000 " ___ 2400" ~" " 2400 ,
i
socso
i Rent ! Bills;
!
I
__ 2448 2448" ~ ~
'
^TOTAL~
87504
91224
93145.40"
We assume there is an increment 2% for bills for every year. There is no increment in salary for the first 3 years
30
INTRODUCTION TO MARKETING
Marketing is a social and managerial process whereby individual and groups obtain what they need and want through creating and exchanging products and values with others. It is also means the performance of business activities lhat direct the flow of goods and services from producer to customer or user. Marketing as the process of planning and executing the executing conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives. Marketing is one process of making business. It is because marketing planning must be systematic and takes many factors for making much sale of product. In the other words, marketing is a definition of an action to do with systematically making high sales without even jeopardizing the rules of religion and humanity. A written marketing plan provides clearly stated that help an organization of business to understand and work toward the common goals. It also serves as the reference point for the success of the activities. On the "Lovely Blossoms Sdn Bhd" comes out with very strong and strategicalry marketing plan to ensure a profitable business. The businesses were in small-scale business with a wide range of a market. We are confident that our business are still under par and concerning the satisfaction to our customer needs and wants as well as contributing towards profits for the business.
31
MARKETING OBJECTIVES
a) To provide goods and services to the public and our customer b) To ascertain the sales level will increase for every month c) To assured that our percentage of profit is increase eveiy year d) To make sure that public and our customer comfortable with services provided e) Grand promotion will be done f) To create healthy competition between competitors to increase the business market size g) To make profit quality product in orders increase customer loyalty by 3 to 4 of market share h) To take the opportunities that depending on the ability and business objectives in order to increase income
32
33
34
TARGET MARKET
Target market is a group of customers who have higher request where it must fulfill by a business via the product offered. In this business plan that our company have done, a survey about the marketing target, it conclude survey in demographic and psychographics. hi choosing the suitable location for our business, we make some survey to find out the area, which has a highest rate of consumer. These customers are choose based on business ability to satisfy customers need and want. Our target market is the community in Shah Alam which consist of: Student college Workers & Offices Personal & Family Hotels & Resorts
Our main office, located at PKNS, Shah Alam. Our main targets are hotels & resorts in Shah Alam. We expect 40% of our market is coming from this community. Besides that's, we also focus our market to, offices, student college and personal and family.
35
MARKET SIZE
In order to manage a "Lovely Blossoms Sdn Bhd", we had makes some survey about our customer which is the community in Shah Alam area. This is because to decide our market size and so that we can makes some comparison with others competitors. Our marketing population on 4 categories: Hotel & Resorts - 40% Workers & Offices - 30% Personal & Family - 15% Student collages - 15 %
We prefer to chooses a community of hotels and resorts as a our main target because there a fewer competitors compared to other places in Shah Alam. Besides that, Shah Alam also have a lot of business especially on hospitality such hotels and resorts. So that we agreed that our market size is come from this community. We also provide a reasonable price for our customers with a good service. For example, we can deliver our flowers to the hotel and resort, so that they do not spend time to pick the flowers arrangements.
36
From the data above, we can obtain the market for our first year of operation. From our own survey for the amount of minimum expenses of the person buy the flower is RM 4.00 per person. So, from here we can calculate the expenses of the customers for a day and a year. Market size = 10/100 X 150000 = 15000 peoples
We assumed that from our service for hotels and offices, weddings RM 16600 per month X 12 = 199200
RM 720000 + RM 199200 - R M 2 7 1 2 0 0
37
MARKET SIZE
40%
0.4-
0.35-
0.3-
0.25-
0.2CO
16%
15%
0.15-
0.1
0.05-
student collages
COMPETITORS
Competitors refer to other businesses that offer similar, substitute or alternative products/services to the same target market. The entrepreneur should analyze the strength and weaknesses of the competitors in terms of size, experience, and years in business, financial ability and product line. In our business, there are a few flower shops that will be our competitors that are operate around our shop From our survey, the\ ha\re their own customers The table show s the competitors of our business 1 2 3 4 Ruby Shapphire Flora & Koleksi \ l e k Su MidoidFloml Hie \Ieo\\ Garden
39
Disadvantages: The price is too expensive Lack of promotion The productivities are low The shops are too small and crowded Product sold are not properly manage
40
MARKET SHARE
Market share refers to the estimated potential sales of the business after taking into considerations the market size and competitors" influences. Market share is often represented in terms of percentage of potential market sized owned. In our business, BEFORE Number ' !
i i
i 1 1
! !
i
i
3 4.
i
l
RM 27,000
! No
Main Competitors
AFTER Monthly Sales Market Share Expectation RM 25,920 RM 23,760 RM 22.680 RM 10,800 RM 24,840
1. 2.
_*>.
i
24% 22%
21%
Ruby Shapphire
| i i
10% 23 %
1
2%
41
TOTAL = RM 271,200
42
43
MARKETING STRATEGY
In order to achieve our sales forecast, we try to develop appropriate marketing strategies to generate sales from our target market. So that we .can concentrate on 4P's, which are product/service, place, promotion and price strategies. All items are very important in order to ensure that the sales can be effectively.
a) Product Strategy To ensure that our business success, we provide the best quality to our customers We also guarantee that our products are attractive which beautiful arrangements of the flowers are. From our survey, we found that people usually bought flowers for many purposes such as occasions like Birthday, Valentine, New Year, and Weeding & Anniversary Ceremony So, we assumed that our sales increase during festive season like Hari Raya and Chinese New Year. Furthermore, we also take a tender for the hotels such as Concorde Hotel, Quality Hotel, Intekma Resort & Convention Centre. IT -tel UiTM and restaurants and offices usage everyday
44
b) Place Strategy Our business is strategically located at G31, Ground Floor, PKNS Complex, 40450 Shah Alam which is main area of Shah Alam. Besides that, it is easy for our customers to find our shop- because our location in shopping complex.
c) Price Strategy The paces that we offer are very reasonable Flm is because nur paces are cheaper than other flower shop "We give a discount price tor our regu'ai customers, hotels and offices. We also provide member car J. f\'them Because rf v"e buy in a large amount, we get a trade and purchase discount form the dealer.
45
d) Promotion Strategy We have to do a lot of promotion in order to notify to all people about the existence of our company. We expect that the sales will generate on our target market and ^o that we will achieve our sales forecast We use effective promotion channel such as signboard, flyers, posters, business card and i others The promotion aetiutv is done twice in a vear The reason is to tell the customer the existence of our shop and to do maintain our sales Besides that, we will make ->ure that our customer get a best service form our w orkers
46
PROMOTION STRATEGY
In order to notify to all community in Shah Alam area about the existence of our company, we use a few alternative to promote our product and services. The strategies we are using are: a) Signboard It is located in front of our premise. It shows the name, address, logo and the product and services of our business b) Flyers
We also distribute fixers to public to attract hotels, resorts, student colleges, \\ orkers and offices. The flyers contains all information about our business e) Posters We stick the posters at the bus stations, supermarkets and also at the college area d) Business Card We use business card to deal with other suppliers and our customers. It contains all information related to our business.
47
MARKETING BUDGET
ITEMS ASSET EXPENSES Business Sign Promotion Transport Business Card RM1000 MONTHLY EXPENSES OTHER EXPENSES
-
TOTAL = RM 2100
48
TOTAL
RM 2100
RM 1000
RM 1050
Transportation: The budget for transportation increased at 15u start from second year to third year This budget include oil A'ehicle. cost transportation like tolls, road tax etc. Promotion: At the first vear the promotion cost its fixed, but the second year and third year this cost is increased at around 15o We estimated that the second and third year, the promotion is not very important Sign Board: We consider this item is fixed asset for our flower shop to grow up
49
INTRODUCTION TO OPERATION
Operation is a process, which involves various kinds of activities that's is being run in a long period. Every process is related to each other starting from raw materials to the outputs. Quality service is the most important thing, which should be considered to achieve our objective and vision to the company. As the operation manager, I am responsible to make sure the operation is run smoothly in all area. I also responsible to check the supplies of the materials for the whole month and for the whole year. At the same time we make sure that our customer are satisfied with our services. In general, our company provides services sales of fresh flower to our entire customer in Shah Alam. We also provide the delivery service for the customers whom make an order, which the flower arrangement is needed. The flowers are selling for any special occasion, Valentines Day, Mother's Day, business purpose and others.
50
OPERATION PROCESS
Buy the flowers from the suppliers at the Chinatown
fl
The worker at the counter will get the information from the customer about the flower types, color, quantity that are needed The worker will give the flower to the customer if they want to buy on that time. If there is a delivery service, information about the customer and the recipient will be taken
JO. . ,
The worker will ask for the payment from the customer
After receive the payment, the worker will give the receipt to the customer
51
O
Buy the flowers
I'
Send the flower
o o^ o
I
52
Roses Carnations Sunflowers Tiger Lilies White Peacock Yellow Peacock Pom-Pom Stargazer / Casablanca Gerbera Orchid
168 144
2.00 5 00
336 720 j
2 50
7 00
|
i
TOTAL
5010
53
Dry Flowers NAMES Dry Flower Class A (Big) Class B (Medium) Class C (Small) Bunga Telur Class A Class B Class C Cossage _ClassA_ Class B Clasb C TOTAL QUANTITY PRICE PER UNIT(RM) 7.50 6.00 5.00 TOTAL AMOUNT PURCHASED (RM) 112.50 90.00 75.00
15 15 15
30 30 30
. 1. -
2 00 100 0 60
. . . . . . . . . I -
60.00 30 00 18 00
. !
30 ^0 30~
45 00 100 15 00
481.00
Other Materials ITEMS Plastic Vase Basket Sponge Wishing Card Wrapper and Ribbon Floral Shear & Scissor PRICE (RM) 125 120 45 _
150 68
!
! j
TOTAL
538
54
MONTH January February March April May June Jury August September October November December
TOTAL COST (RM) 5491.50 5791.50 5691.50 5591.50 5700.00 5710.00 5230.00 5238.00 5063.13 5073.13 5103.13 5103.13
TOTAL = RM64786.52
55
STORE
MARKETING MANAGER, OFFICE OPERATION MANAGER OFFICE FINANCIAL MANAGER OFFICE ADMINISTRATION MANAGER OFFICE
MEETING ROOM
CHILLER
56
OPERATION BUDGET
ITEMS Chiller Van Table Van service Insurance and Road Tax Petrol Raw Materials Other Materials j ! 1000 1 I
1
300.00 1300.00
5491.50
i
538.00
TOTAL
37800
6491.50
2138.00
58
> There is an increasing in the cost of petrol and raw materials, which is at 10% for the second year and 20% for the third year.
INTRODUCTION TO FINANCIAL
Before we start our company, we had made a careful planning about financial aspects. This financial prepared after our company prepare in administration, marketing and operation aspects. All factors are relevant or connected to our business and can dominated the movement of companyfinancialwill be search deeply pro and the contra.
Thisfinancialplanning prepared for determined: a) b) c) The amount of cost needs to start the project, Total of source need. Capital structure of our company.
d) Total of loan amortization. c) f) g) Total of hire-purchase repayment. The depreciation of fixed assets. Cash money prepared in our company,
60
This financial information plan depends on the input from the budget of administration, marketing and operation that has prepared first. The statement include in thisfinancialplanning are:
a) Project implement cost. b) Source of project fund. c) Loan amortization schedule. d) Table of depreciation. e) Cash flow pro-forma statement. f) Manufactuiing, trading, profit and loss pro-forma statement.
61
RM
m'
1 contingencies (10%)
| i
!
TOTAL i
1
82602.85
62
SOURCE OF FUND
RM
63
DEPRECIATION ASSETS
Year
i i
1
i
j | 1
1
|
i
1
1
64
DEPRECIATION ASSETS
Year
0 1 2 3 4 5
65
DEPRECIATION ASSETS
Year
0 1 2 3 4 5
66
DEPRECIATION ASSETS
Year
Annually Depreciation
| Total Depreciation
(RM)
0 1 2 3 4 5
-
(RM)
-
1
400 200
i
67
DEPRECIATION ASSETS
Year
Balance (RM)
4500
900 900
900 1800
27O0 3600 4500
5600
2700 1800
3 4 5
900
-
68
DEPRECIATION ASSETS
j
i
Year
Balance
(RM)
100
80
fio
i
;
!
-i
I
2 3
20
20
1
2o
20
i
40
6a
40
1 20.
i
1
4
1
2o
:
i
80
1
20
100
1
69
Year
Interest (RM)
i
0 1 2 3 4 5
i
i
j 1 , 1
1000O
f
70
Year
Interest (RM)
Principal (R]VI)
Payment (RM)
~24000 ~
"TROOO"
6000
71
RM SALES LESS EXPENSES Administration Marketing Operation Financial 1 Interest on term loan
I
RM 271200
700
2400
2. Interest on hire-purchase
Depreciation charges Pre-Operation Expenditure Total Expenditure PROFIT
10660 "3260
. .
72
PROFIT AND LOSS ACCOUNT FOR 2ND YEAR (31 DEC 2007)
RM SALES LESS EXPENSES Administration Marketing ()peration Financial ! 1 Interest on term loan 2 Interest ^n hire-purchase Total Expenditure PROFIT TAX (28%) NET PROFIT
RM
298320
91224
i
1000 80301.60
560
2400
73
RM SALES LESS EXPENSES Administration "Marketing rOpe^n^n" Financial 1 Interest on term loan 2 Interest on hire-purchase 1 " Total Expenditure PROFIT TAX (28%) NET PROFIT
I
RM
325440
! " '
;
139131.60_
1
-38956.80 100174.80
74
Equity
a) Cash b) Net Profit Liabilities a) Term Loan b) Hire Purchase TOTAL EQUITY AND LIABILITY 40000 2400 42400 152928.16 60000.00 50528.16 110528.16
75
RM
148440.80
76
Equity
a) Cash b) Net Profit Liabilities
-
77
Month A. CASH INFLOWS Beginning cash balance Equity Cash TermTx>an Cash Sales B. Total Cash Inflows C. CASH OUTFLOWS a) Administration Expenditure Salary EPF SOCSO Electricity & Water Rent Building Telephone Bill b) Operation Expenditure Raw Material Petrol c) Financial Expenditure Loan Repayment Principal Interest Hire Purchase Payment Down Payment Principal Interest d) Capital Expenditure Business Sign Chiller Table (Operation) Van Computer Furniture and Fixtures Renovation e) Other Expenditure Promotion Business Card Petrol (Marketing) Van Service Insurance Other Material (Operation) f)Deposit g)Pre-Operation D. Total Cash Outflows . Cash Surplus/Deficit F. Ending Cash Balance
JANUARY 39102
FEBRUARY 32618.34
16400 55502
28600 61218.34
833.33 833.33 5000 500 200 1000 2700 100 35000 4500 2700 10000 800 150 150 300 700 538 4000 3260 70898 39102 7839102
833.33 833.33
500 200
~ -
IARCH 44018.18
APRIL 50918.12
MAY 56418
JUNE 66509.3
JULY 69390.6
AUGUST 67751.98
SEPTEMBER 66605.32
27200 83618
20000 86509.3
18000 84390.6
19500 83251.98
14200 80805.32
833.33 833.33
833.33 833.33
833.33 833.33
833.33 833.33
833.33 833.33
833.33 833.33
833.33 833.33
500 200
500 200
500 200
500 200
500 200
500 200
500 200
17000.16 17108.66 17118.66 16638.66 56417.96 66509.3 69390.64 67751 98 56417.96 66509.3 69390.64 67751.98 19
OCTOBER 64333.53
NOVEMBER 63851.74
DECEMBER 77339.95
16000 80333.53
30000 93851.74
34800 112139.95
271200 327200
833.33 833.33
833.33 833.33
833.33 833.33
500 200
500 200
500 200
"
4500 2700 10000 800 150 150 300 700 538 4000 3260
YEAR1 A. CASH I N F L O W S Beginning cash balance Rquity Cash Term Loan Cash Sales B. Total Cash Inflows C. CASH O U T F L O W S a) Administration Expenditure Salary EPF SOCSO Electricity & Water Rent Building Telephone Bill b) Operation Expenditure Raw Material Petrol c) Financial Expenditure Loan Repayment Principal Interest Hire Purchase Payment Down Payment Principal Interest d) Capital Expenditure Business Sign Chiller Table (Operation) Van Computer Furniture and Fixtures Renovation e) Other Expenditure Promotion Business Card Petrol (Marketing) Van Service Insurance Other Material (Operation) f)Deposit g)Pre-Operation D. Total Cash Outflows E. Cash Surplus/Deficit F. Ending Cash Balance 0 60000 50000 271200 327200
YEAR 3 196455.99
325440 521895.99
10000 700 5000 6000 2400 1000 2700 100 35000 4500 2700 10000 800 150 150 300 700 538 4000 3260 279788.44 95628.16 95628.16
10000 560 0 6000 2400 0 0 0 0 0 0 0 800 0 200 300 700 538 0 0 210692.17 183255.99 196455.99
10000 420 0 6000 2400 0 0 0 0 0 0 0 800 0 250 300 700 538 0 0 220656.82 301239.17 301239.17
Cash-flow Pro-forma Statement For First Year, Second Year and Third Year
SUMMARY
Business plan have widened our knowledge and open our eyes to the world of business. Before mis, we assume mat making business is as simple as ABC, but our expectation is totally false. As we have to go through a hard way in completion of his
business plan report. However, we found that doing this is something fascinating and interesting to do. During the hard day preparing busmess plan, we learn many things especially teamwork. We learn the value of giving and taking, patience and the important thing is we have built stronger relationship. Based on the observation we made, LOVELY BLOSSOM SDN BHD can make a profitable business. Within the strategic location, in the heart of human activities, we though this might be the strategic 3pot for customer around and the place to choose us as their special place to get beautiful and enchanting flower.
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