No. Student Name Registration Number 1 Chan Chi Yee 08WBA12624 2 Lian Ye Chen 08WBA12418 3 Lim Swee Ling 08WBA10687 4 Ng Kim Toh 08WBA11482 5 Tee Yang Wei 08WBA12303
Academic Year: 2009/10 Course/Year: Advanced Diploma in Business Studies (Accounting)/ 2AAC Tutorial Class: Group 7 Lecturer: MR. LIM CHIN HOCK Tutor: MR. JAMES TEO Date of Submission: 10 AUGUST 2009
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Page Executive Summary
1 Company Description
2 Franchisor Description
2-3 Objectives and Missions
4-5 Industry and Market Analysis
6-9 Marketing Plan
10-15 Management Structure
16-17 Operational Plan
18-21 Implementation Plan
22-27 Financial Plan
28 Critical Risk Factors
29 Conclusion
30 Appendix
31-40 Bibliographies
41-42
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Executive Summary
The purpose of this business plan is to secure a long term funding to open a Secret Recipe Caf franchise in Perak. The 5 owners in company are investing Rm 30,000 each person and total up to Rm 150,000 in total. The long term loan we are seeking is in the amount of Rm 300,000, and if approved it will be amortized to 10 years.
We will be forming a private limited company, Infinity Private Limited Company to get the franchisee license from Secret Recipe Cakes & Caf Sdn Bhd and open our franchise shop as the first shop in Perak state. Our caf will be strategically located at Unit 829, Jalan Batu Karang, Taman Bandar Baru Kampar, 31900, Kampar, Perak it is refer as new town in Kampar District.
Secret Recipe Caf is a lifestyle concept caf chain that features a modern and metropolitan setting that has more than 150 outlets throughout Malaysia and Asia. It is one of the fastest growing caf chain in Asia. Our mission is to give the best satisfaction to our valued customer. Secret Recipe caf offers a wide choice of more than 40 different type of cake and fusion food. It is one of the best place to dine in with friends and family.
As in our industry analysis report, the trend is moving toward dining out from home nowadays. People tend to enjoy life and more concern about the quality of life, thus they are more likely to dine in more classy and trendy caf and not just have their meals at restaurant which does not serve good quality food. The business we are going into is visible and viable as we offer best quality food and best service at a reasonable price.
Despite the competitiveness from our competitor, with our promoting strategy and the brand name of Secret Recipe, we are positive to attain the market share we estimated. Our management team was build with 5 shareholders with qualification and knowledge in Accounting.
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Company Description Infinity Private Limited is formed through a partnership of 5 fresh graduates from Tunku Abdul Rahman College. We are planning to get a franchisee license from Secret Recipe Cakes & Caf Sdn Bhd to setup a Secret Recipe franchise lifestyle caf at Unit 829, Jalan Batu Karang, Taman Bandar Baru Kampar, 31900, Kampar,Perak. Our caf will be a single unit, medium-sized single story caf serving large variety of tasty cakes and a fusion of tasty foods
Company Ownership 5 partners will jointly hold the company at 20% shares each. Profits are to be distributed equally among the 5 partners.
Franchisors Description Secret Recipe is a lifestyle caf chain established since year 1997 by Yang Bahagia Dato Steven Sim. He had successfully transformed a small business into a market leader within a short period of time. Secret Recipe has established a firm presence in Asia, including Malaysia, Singapore, Philippines, Indonesia, Thailand and Pakistan. A large variety of cakes and fusion of foods are served under the brand name of Secret Recipe.
The company has registered double digit growth for the past 5 years. In a period of seven years, Secret Recipe has expanded by over 100 cafes throughout the region. Defying the statistics of an economic crisis, Secret Recipe continues to register annual growth of 30% for the past three years, while profits saw a 300% increase in year 2002.
Secret Recipe has won numerous awards across the region for its authentic food recipes and fine quality cakes including: Best Cheesecake Award Most Original Chocolate Award Best Lamb Stew Award Malaysias Best Local Restaurant Chain Indonesians Best Restaurant Award COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI ABDM 5234 Entrepreneurship Skills 3
Singapores Excellent Food Award Best Brand Food & Beverage Caf The Brand Laureate Asia Pacific Best Restaurant Award Philippines Talter Best Casual Dining Restaurant of the Year Hospitality Asia Platinum Awards
Secret Recipe offers customers a warm and friendly ambience in a trend setting environment. In line with Secret Recipes lifestyle caf concept, the cafe features the theme of fresh and simplicity chic interior.
The interior also presents an interlude of vibrant splashes of dramatic colours with plush sofas and arty seats that liven up the ambience and adding on to the cosmopolitan characteristics of the cafe.
Patrons can look forward to a pleasant dining experience in a modern in-trend set up. The caf concept certainly provides a conducive location for birthday and celebration parties, private functions or business lunch functions. COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI ABDM 5234 Entrepreneurship Skills 4
Vision Our vision is to ride on the success of Secret Recipe brand and engrave a good brand impression in the hearts of Kampar population. We strive to adhere to strict self regulation and control on the food and service standards and quality that we provide to customers.
Mission Statement At Infinity Private Limited, we believe that our accomplishment is driven by our philosophy of practicing quality and high standards is the most important brand value for Secret Recipe. We strive to provide the best satisfaction to our valued customers.
We will continue to provide friendly, personalized service beyond customers expectation and serve premium quality products. We adhere strictly to Secret Recipes core values:
QUALITY is everything we do. Quality is more than a word we use to describe our food and service. It is a philosophy that everything we do. It is always the result of high standards, sincere effort and skillful execution. Our commitment to quality distinguishes us apart from our competitors.
DEDICATION- we are dedicated to maximize the level of performance and productivity in all areas of or business. To drive success of our company, we must set aggressive goals, focus on results and an obligation to earn a profit in order to remain in the business and growth. We must not jeopardize our future for short-term gain. We will balance our need for current earnings with our desire for consistent long-term profitability.
CONCEPT a differentiated and proven concept with broad consumer appeal. This unique positioning and strong brand image remain part of our strongest competitive advantage.
SERVICE we believe quality, friendly and personalized services sets us apart from our competitors. It is an effort we put in building positive customer relationship, transcend ingenuity, hard work and passion for service excellence. COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI ABDM 5234 Entrepreneurship Skills 5
RESULT ORIENTED managing performance within the company and through customer feedback is very important to gauge the growth of the company. We continuously measure our performance and set targets by benchmarking to stay competitive and to move ahead for growth.
Objectives Infinity Private Limiteds main objective is to achieve a break-even point within the first year of commencing operating of business. During the first year period, marketing plan will be implemented to tap into Kampars market share and achieve a 10% market penetration.
For the following years, we will continue to achieve positive percentage growth that can help our caf to grow steadily and remain dominant in the market segment that we are strong in. COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI ABDM 5234 Entrepreneurship Skills 6
Industry Background Statistics Malaysia shows that the Gross Domestic Product for the year 2008 has an average growth of 4.73% for the whole year. However, it is at a 6.2% contraction for the first quarter of year 2009. Consumer Price Index shows a 7.2% increase in price of foods for the period of January to June 2009 as compared to year 2008.
Despite the contraction of economy nationwide, our researches lead us to a different opinion on lifestyle trends in Malaysia. Consumers are more than willing to dine outside due to lack of time to cook at home as a result of doing overtimes in work. Purchasing power for outside food has greatly increase over the years because people find that the time is much wiser to be spend on doing more work to get increases in wages.
Another trend that we see is a growing demand for better dining environment among family households. Family households demand more from eateries, including good quality foods, services and dining environment.
As one of the fastest growing franchise in the food service industry, we are right on track to tap into the market in Kampar and woe customers to enjoy a good lifestyle dining experience at Secret Recipe.
Market Analysis Analysis of Business Environment Kampar district of 920sq km have a growing population of 93,000 residents to date and a yearly revenue of RM 12million.Our targeted market are the new town in Kampar district, Bandar Baru Kampar where it had rapidly developed over the years.. More than 5,000 houses and shops were build in this town and hub of education such as major university and college were set up here. Furthermore, the biggest hotel in Kampar is already in operation here. It would attract many tourists as it is located in center of many attractions such as Gua Tempurung, Batu Berangkai Waterfall and white water rafting. Our market consists of students and lecturers from COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI ABDM 5234 Entrepreneurship Skills 7
Tunku Abdul Rahman University and Tunku Abdul Rahman College, white collar workers, residents and also tourists.
Market size In Bandar Baru Kampar there will be more than 18,000 residents residing that town. Many of these household are from middle income family earning RM2,000-3,000 with high purchasing power. The hub of education also draws a population of more than 9,000 students age between 18-24 with high purchasing power and going after trendy and classy lifestyle. The biggest hotel in Kampar which located just 1 km from our shop, The Grand Kampar Hotel attracts more than 3,000 tourists annually because of it strategic location. Lastly, we targeted the1,200 white collar worker who works in the town to consume in our caf.
Should we be able to attract 10% of the population to order a slice of cake per month and10% of the population to order a cake per year, we are able to sell 6,240 cakes year the year 2009 to that market alone. On top of that, should there be a meal being bought for 2 slices of cake sold, we are able to sell 37,440 meals for the year 2009. Resident Students and Lecturers Tourists White collar worker
Demographic Changes The trend of demographic in our targeted area is set to be increased at a high rate with more students coming to Kampar to pursue education in newly launched University Tunku Abdul Rahman as the university completes its transition from old campus to the newly built campus. This leads to increase in population aged 18 to 24 with high purchasing power. The demographic COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI ABDM 5234 Entrepreneurship Skills 8
of family households has now been largely diluted with a lot of college students. College students tend to eat out more often than doing the cooking themselves.
Attitude of the community towards our business There is a high demand for a lifestyle dining concept among college students and average family household. This particular category of consumer is willing to pay premium in return for better environment to dine in, good service and quality foods. Consumer reports in the targeted area concludes that consumers would rather eat out with friends and families to save time on cooking, while still able to utilize the extra time saved with friends and families. Thus, they demand quality service and environment when dining out.
Analysis of the Competition Our competition consists of a few food caf located nearby our location. The competition will be quite fierce as it offer food at lower price compares to our. But however our lifestyle caf will set us apart from the competition as we focus on best quality food and cake, cozy lifestyle ambiance dining concept and therefore we emphasize on providing only the best dining experience to our customers.
Golden Sand Cafe Golden Sand caf is our main competitor. It is located at the shop lots opposite to our store at roughly 200 meter distance. It serves a variety of western food which includes steaks with rice, spaghetti, and soups. Their main target is the students from university and college, thus their average price per meal is set within the range of RM9-12.
Yum Yum Cafe Yum Yum Caf is located at the corner of the same shop lots as our caf. They serve mostly Chinese food such as noodle and rice which comes with a dish. Their meals price was set quite low as to attract customer, within the range of RM 7-10. But however, the review from customer for food has not been very good.
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Big A Kopitiam Big A Kopitiam is a local restaurant which serves local delicacies from all over Malaysia. It is located quite a distance from our shop, almost 2 km. Hence, they targeted market are those downtown workers and late nighters as their shop operates till 2am.
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Marketing Plan Product Secret Recipe is well known in Malaysia for its fine quality cakes, fusion food and distinctive service. Our well-guarded homemade recipes have become favorites for both old and young. We are serving a wide selection of more than 40 types of gourmet quality cake and other baked desserts. Other than that we also offer savory foods such as local delicacies and fusion food. It includes Secret Recipe award winning Lamb-Stew and other favorites dish of all time, Black Pepper Chicken, Kebab and Pasta.
We offer more than 40 types of different cheesecake, chocolate cake, and brownies. Other than that, we also offer seasonal cakes using seasonal ingredient in Malaysia such as Durian Cake, Durian Cheesecake and Hazel Cheesecake. Health Cake was introduced to the market as the market trend shift to healthier lifestyle. Sugar free and trans-free cake such as Sugar Free Moist Chocolate Cake and Hi-fiber Cream Cheese was put on shelf and gets good review from the customers.
Secret Recipe do have the service of baking cake in shape of different character of Disney cartoon based on the preference of customers choice of flavor . Customer can choose the cartoon character pose from our album and choose up to 3 different flavors depending on how big the cake they want. This cake reservation must be made 3 days in advance.
Our menu includes a few sections, which are: Vegetarian: Its offers choice of salads and Japanese soba for those who vegetarian or those who wish to have a fresh bowl of salad as appetizer.
Soup: Secret Recipe does have well-guarded recipes of soups such as mushroom soup, pumpkin soup and carrot and ginger soup. COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI ABDM 5234 Entrepreneurship Skills 11
Chicken: This section serves chicken in a variety of dish such as Chicken Steak Burger With Fries, Grilled Chicken (Black Pepper, Mushroom, BBQ) Chicken Kebab and many more delicious dish with chicken.
Pasta: We offer spaghetti with recipe all over the world no matter in western or Asia, such as Spaghetti Bolognese and Tom Yam spaghetti. It is popular food in our menu.
Asian Classic: This section provides the best food selected from all over Asia.
Fish and Lamb: The Lamb Stew has been awarded Best Lamb Stew Award, it had becomes a signature dish in Secret Recipe. Western foods are also served such as Fish And Chips.
Kids club: Secret Recipe Caf had been also considering kids favorites dish and so gather it in menu too. It comes in a smaller portion and smaller bite to ease the kids in dining.
Pies: It offers best pies recipe and created to engage the taste buds of customer.
Brownies: Brownies are offer in Secret Recipe Caf with a variety choice. It is suitable for both young and old and in comes in a fine texture of taste and quality.
Secret Recipe Caf also serves a variety choice of drinks that includes Coffee, Organic tea, Milkshake, Yoghurt shake, Fruit Juice, Ice Blended, Iced tea and also hot drinks.
Distribution We distribute our products directly to our customer, which is through retail shop. Secret Recipe also offers cake delivery if customers make booking of minimum 2 cakes through our website, www.secretrecipe.com.my. The delivery will be made in 5 km radius from our shop.
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Promotion As we are the franchise of Secret Recipe Caf, the advertising on the franchise business as a whole will be place by the induct company in major newspaper. At the grand opening of our branch, we will hold an opening party. Free food such as our signature cheesecake and drinks from menu will be served. By this method we can gain publicity and build our brand name in town. The grand opening of the branch in Kampar will be put up in website of Secret Recipe Caf as free advertising. Besides that we will also put up banner at the lamp post along the main road into the town to bring up the awareness of residents in town of the opening of our caf.
Apart from that we will place advertisement of the opening of our shop in local daily newspaper. This is an effective ways of spreading the words among the local to let them aware of the brand new caf existence.
Upon opening of our shop, we will distribute flyers at both the Tunku Abdul Rahman University and Tunku Abdul Rahman College and to the white collar workers. Then we make a sponsorship for an event in Tunku Abdul Rahman University to build our brand name and to introduce it to the students and lecturers.
As to attract the tourist, we will meet the management of The Grand Kampar Hotel to discuss on placing our brochure on the front desk as information to the tourist who accommodate there.
Secret Recipe Caf also offer Birthday Promotion for the birthday girl/boy with the condition of purchasing a whole cake and the birthday girl/ boy will be given a complimentary meal and drink. The second promotion is RM15 per meal which comes with a drink; the customer can choose the meal and drink from the given set menu.
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Place We have chosen a strategic location facing a new plaza which will be built not far in future. This location is located in the center of the town where its surrounded by the Tunku Abdul Rahman University, Tunku Abdul Rahman College, more than 5000 houses and shop lots. After surveying a few potential shop lots, we have decided to rent Unit 829, Taman Bandar Baru Kampar, 31900, Kampar, Perak.
The property is about 2056 square feet and the height is about 4 meters. The rental of the premise is Rm 2,000 per month. The premise will be renovated according to the design of layout provided by the main franchisor of Secret Recipe Cakes & Caf Sdn Bhd as to customize all the branch.
The location was selected because the population in the town alone is 18,000 residents and the students from both the university and college make up to 9,000. Furthermore the biggest hotel in Kampar district was located about 400 meters away from our shop, the hotel attracts more than 3,000 tourist per year. This new town in Kampar will have a steady growth of population as the hub of education was build here and the business center of Kampar are shifting into here as well.
The shop was located at the front row of shop lots and can be easily seen from the main road from Kampar old town. The main road is the road accessible to university, college and also the hotel. It may draw many attention and gets free publicity.
There are many parking lots available at the front of our shop and within our caf area. It is very convenient for customer to find parking.
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Pricing Our product prices are set by Secret Recipe and we adhere to the price strategies set by Secret Recipe. Secret Recipe uses a price lining strategy on certain categories of products. This is to simplify the choices of the customers by introducing same pricing for foods of the same type.
Secret Recipes markup of 250% to arrive at menu price is at the industry average level range. This is to cover up the overheads generated to operate the business. Retail prices will be competitive at about $15 for the average meal which is about 30% above our competitors prices. However customers are simply willing to pay more for healthier, tasty food served in a clean, comfortable and pleasant environment.
Our pricing objective is to be as reasonable as possible for the average household income who demands a good dining experience, therefore the cap limit for which the average target market would be willing to pay for a meal is slightly above the normal pricing. This applies to the ala carte meals only.
We have another set if pricing policies for our cakes which is different from the ala carte meals. Tapping into the idea and trend of people craving for Secret Recipes cakes, we are able to introduce our cakes at a standard RM6.30 per slice of cake and a standard RM70.00 per cake. Customers are just willing to go for our quality cakes because of our brand in cake making industry which had won us lots of awards.
Nevertheless, for cakes that requires custom designs, shapes, decorations, a premium will be charged because of the usage of more than 1 recipes and the additional work on the cake. Customized cakes with 1 recipe will have a markup of 250% of its cost, 2 recipes will have a markup of 600% on cost and 3 recipes will have a markup of 800% on cost. The premiums are paid for the amount of recipes used in the cake making process.
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We will exercise product bundling by introducing set meals to customers who come to dine during peak hours, which is lunch hour and dinner hour. The objective of setting product bundling pricing is to maximize table turnovers during the peak period and boosting sales. By packaging a main course meal with a soup of choice and a drink, we are able to introduce set packs at a much lower markup margin. Riding on the idea that white collar classes people and college students who are in a rush to have their lunch, it would be effective that we get a lower margin but able to maximize the table turnovers in order to maximize our sales during peak hours.
Labor costs are based on monthly basis where staffs will be paid at the end of the month. Besides this, bonus will be given at the start of every year. Bonuses are given to employee based on performance of the company for the year.
Raw materials prices that we obtained are discounted prices 10% below market price as set in an agreement by Secret Recipe franchisor with suppliers. This is the bang for the buck spot as the cost and thus, leaving us with more space for our margins. COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI ABDM 5234 Entrepreneurship Skills 16
Management Structure Our management team consist of five(5) partners which will be Chan Chi Yee, Lian Ye Chen, Lim Swee Ling, Ng Kim Toh, Tee Yang Wei. We segregate the duties to among five partners. Our aim is to motivate our managers to take a personal stake in the success of company, and for the reason each managers will be shared any profit that has been generated.
The sharing profit ratio will be 20% for each partner.
Marketing and Sales Manager This position will be assigned to Chan Chi Yee. He will responsible for daily sales, advertising, promotional plan and budgeting plan.
Financial Manager Tee Yang Wei will be appointed as financial manager as he has the qualification as an accountant. Therefore, he is capable of handling this responsibility. He will responsible for accounting reporting and tax computation.
Purchasing Manager Ng Kim Toh will take the responsibility of this position. She is responsible for keep contact with our master suppliers list in order to ensure the supplier will deliver the raw material on times and in good condition.
Administration and Human Resource Manager This position will be appointed to Lian Ye Chen. She will responsible for all the administration works. In addition, she also responsible to contact with Secret Recipe franchisor for fresh recruit on-site training, set up and implement staff policy and accounting payroll.
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Supervisor Lim Swee Ling will take over this responsibility. She is responsible for evaluate staff performance, prepare staff daily schedule, monitor the daily operation and perform cash counting at the end of each operating day. COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI ABDM 5234 Entrepreneurship Skills 18
Operational Plan Location It must be at the good strategic location. Therefore, the location that we have chose will be located at Taman Bandar Baru Selatan Kampar which is a surrounding by housing area, highly visible, high stream of people as it is near to the University of Tunku Abdul Rahman and College Tunku Abdul Rahman. The floor area is about 2,056 square feet. The rental per month will be RM2,000 which is considered reasonable. The shop will be renovated as the design of layout that provided by Secret Recipe franchisor.
Operation Hours Our daily operation hours for Sunday to Thursday will be 10am to 10pm. For Friday and Saturday our operation hours will be from 10am to 12am to accommodate the longer peak period during dinner, because more family households choose to dine up outside during this time. Besides that, our staff will be required to come in 1 hour in advance in order to any necessary preparation.
Operation In order to keep efficiency for daily operation, we will hire two chefs, one will be the main chef and another one will be responsible for pastry plus we also hire an assistance chef to provide assistance for the two main chefs. Besides that, four full-time staff will also be recruited and also one part time staff that will fill in the job whenever one of our full-time staff is on leave. We will also assign two shifts for our staff which is 1 day shift and night shift. Furthermore, the order and payment by customers will be fully computerized, in order to ensure the effectiveness and efficiency of our operation to minimize error.
Supplier We will purchase our raw material from the suppliers which provided by the Secret Recipe franchisor because it is more reliable and quality control by headquarter. Furthermore, purchase the raw material through the suppliers list given by Secret Recipe franchisor will be given us a lower price which the price is quoted at below 10% of the market price. We also given the COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI ABDM 5234 Entrepreneurship Skills 19
benefit of 30 days credit term for procurement of raw material, this allows to loosen up our cash outflow.
Equipment The suppliers of equipment, furniture, kitchen ware, auxiliary, toiletries and cutleries will be provided by the Secret Recipe franchisor as to customize to their policy of shop layout concept.
Training Secret Recipe franchisor will be provided on-site training for the chef, pastry chef and also waitress. The chef must undergo 1 month training on how to prepare the dish on menu at Kuala Lumpur headquarter. The pastry chef must also be trained in Kuala Lumpur on how to prepare the cake and desserts. The objective of training not only to teach on the preparation of food but also to increase their knowledge and skill. The full time workers will also be train by the management in headquarter as how to serve the customers and how to prepare the drinks. COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI ABDM 5234 Entrepreneurship Skills 20
Daily Business Schedule Time Person in charge Job Description 9.00am to 10.00am All the staff who work at morning shift Chefs and chef assistance The staff will be did some cleaning process such as sweep and mop the floor, clean the table and etc. While, the chefs and chef assistance will be prepared for the raw material for the daily usage. Supervisor will bank in the yesterday cash received to bank account. 10.00am to 1.00pm All staffs include chefs and chef assistance Waitress will serve the customers, take order, prepare the Supervisor will manage the cash payment system and serve the customers when it is necessary. Chefs and chef assistance will start their cooking in order to meet customers order. 1.00pm to 3.00pm All staff including night shift staff Part-timer (if full- time staff is on leave) The staff that work for night shift will be come in at 1.00pm and start their work. Morning shift staff will be given one hour for their lunch. 3.00pm to 7.00pm All staff Continue their job as above. Night shift staff will be given 1 hour for dinner. COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI ABDM 5234 Entrepreneurship Skills 21
7.00pm to 9.30pm All staff Morning shift staff can be knock off work at 7.00pm Other staff will still continue their job. 9.30 to 10.00pm All staff Chef and chef assistance will do the necessary keeping for the raw material, cleaning and throw rubbish Other staff will clean the table, throw rubbish. Supervisor will perform the daily cash counting and keep the cash at security box.
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Implementation Plan Task Implementation Steps Start Date Duration Completion Date Staff Responsible Administrative Registration of business Filling up forms to Registrar of Company to establish a private limited company Filing of documents required by Registrar of Company to complete business registration procedure 1/10/200 9 90 days 31/12/2009 Administration Manager Registration of franchisee Filling up forms to Registrar of Franchise to establish as a franchisee Filing of documents required by Registrar of Franchise to complete franchisee registration procedure 1/10/200 9 90 days 31/12/2009 Administration Manager Loan application Application of bank facility for RHB Bank Seek a loan term loan application 2/10/200 9 7 days 9/10/2009 Financial Manager Business operating license Obtain business operating license with municipal council 8/10/200 9 60 days 6/12/2009 Administration Manager COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI ABDM 5234 Entrepreneurship Skills 23
Task Implementation Steps Start Date Duration Completion Date Staff Responsible Location agreements Seek and confirmation of location for business operation Confirm and enter into tenancy agreement of business operation location 12/10/20 09 7 days 19/10/2009 Administration Manager & Financial Manager Renovation and fitting of furniture, lightings, decorations Liaise with franchisors concept designer to design the location into Secret Recipes theme Get contractors to renovate the theme designed Installing of furniture and lightings, decorations 20/10/20 09 72 days 31/12/2009 Purchasing Manager, Financial Manager & Administration Manager Approval from Ministry of Health Submission of form to Ministry of Health for medical checkups of partners Attend food sanitation classes Allow health workers to evaluate sanitation compliances at premise Confirmation of approval 21/10/20 09 14 days 4/11/2009 Administration Manager COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI ABDM 5234 Entrepreneurship Skills 24
Task Implementation Steps Start Date Duration Completion Date Staff Responsible Approval from Environmental Protection Bureau Compliance with Environmental Protection Act Allow officers to determine level of compliance of premise to ensure it is in compliance with Environmental Protection Act 22/10/20 09 14 days 5/11/2009 Administration Manager Tax & Legal Compliances Submission of documents to LHDN (Lembaga Hasil Dalam Negeri) for tax compliances of business Legal, solicit on business legal system compliances 5/11/200 9 7 days 12/11/2009 Financial Manager Insurance Application for premises fire insurance, employees liability insurance from Kurnia Insurance (Malaysia) 16/11/20 09 3 days 19/11/2009 Human Resource Manager, Supervisor & Administrative Manager
Human Resource Recruitment Publicity activities to be done to 4/12/200 14 days 18/12/2009 Human Resource COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI ABDM 5234 Entrepreneurship Skills 25
Task Implementation Steps Start Date Duration Completion Date Staff Responsible notify public about vacancy to be filled up Conducting of interviews Confirmation of staff structure 9 Manager & Supervisor Medical Checkups Medical checkups for all recruited staffs to comply with regulation bodies requirements 19/12/20 09 3 days 22/12/2009 Human Resource Manager Training Liaise with franchisors staff trainer and follow up close with on-site training of staffs 15/11/20 09 1 month 25/12/2009 Human Resource Manager
Marketing & Promotion
Advertising Advertise at local daily newspaper Put in the date of grand opening and the grand opening party After opening, advertise on the set meal promotion. 15/12/20 09 3&1/2 months 31/3/2009 Marketing and Sales Manager Printing Design the banner to put up on 1/12/200 25 days 25/12/2009 Marketing and COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI ABDM 5234 Entrepreneurship Skills 26
Task Implementation Steps Start Date Duration Completion Date Staff Responsible lamp post along main road Design flyer to be distributed to students, residents and workers. Design brochure to be put in the front desk of hotel. Get into contact with printing supplier and get the best deal Choose material and confirm the printing 9 Sales Manager Sponsorship for Tunku Abdul Rahman Event Meeting with the board of University. Discuss on the details of the sponsorship. Confirm of which event to sponsor.
1/2/2010 1 month 28/2/2010 Marketing and Sales Manager Grand Opening 1/1/2010 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI ABDM 5234 Entrepreneurship Skills 27
Gantt Chart of Implementation Plan Month Task Oct 2009 Nov 2009 Dec 2009 Jan 2010 Feb 2010 Mar 2010 Registration of business Registration of franchisee
Loan application Business operating license
Location agreements Renovation and fitting of furniture, lightings, decorations
Approval from Ministry of Health
Approval from Environmental Protection Bureau
Tax & Legal Compliances
Insurance Recruitment Medical Checkups Training Advertising Grand Opening
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Financial Plan
-refer excel
COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI FINANCIAL PLAN Startup Costs RM Furniture & Fitting 35,000 Renovation 90,000 Kitchen Equipment 55,000 Total Capital Expenses 180,000 Franchise Fee 120,000 Franchise Fee - Registration 1,000 Franchise Fee - Processing Fee 50 Business License 3,480 Grand Opening Advertising 80,000 Rental (Deposit) 15,000 Total Deposit & Prepayments 219,530 Startup Costs 399,530 Equity RM Capital 150,000 Long-term Liabilities Long-term loan 300,000 Total Equity and Libilities 450,000 Calculation of Working Capital Total Equity and Liabilities 450,000 (-) Startup Costs (399,530) Working Capital 50,470 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI Pro Forma Income Statement for Year 1 Infinity Private Limited Month Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Total Sales 84,296 85,946 87,629 89,346 91,097 92,883 94,704 96,563 98,458 100,391 102,363 104,374 1,128,049 (-)Cost of Good Sold 23,956 24,428 24,909 25,399 25,899 26,410 26,930 27,461 28,003 28,555 29,118 29,693 320,762 Gross profit 60,340 61,518 62,720 63,946 65,197 66,473 67,774 69,101 70,455 71,836 73,245 74,681 807,287 Gross Profit Margin 72 72 72 72 72 72 72 72 72 72 72 72 72 Expenses Depreciation 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000 Maintenance and repairs 400 400 400 400 400 400 400 400 400 400 400 400 4,800 Salaries and wages 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 360,000 EPF 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 43,200 Rent 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000 Telephone bill 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Interest expense 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 13,500 Utilities 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000 Accounting fee 800 800 800 800 800 800 800 800 800 800 800 800 9,600 Insurance 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000 Advertising 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 21,600 Royalty fees - 7% 5,901 6,016 6,134 6,254 6,377 6,502 6,629 6,759 6,892 7,027 7,165 7,306 78,963 Miscellaneous 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Total Expenses 51,026 51,141 51,259 51,379 51,502 51,627 51,754 51,884 52,017 52,152 52,290 52,431 620,463 Profit before taxes 9,314 10,377 11,461 12,567 13,695 14,846 16,020 17,217 18,438 19,684 20,954 22,250 186,824 Taxes - 25% 2,328 2,594 2,865 3,142 3,424 3,712 4,005 4,304 4,610 4,921 5,239 5,563 46,706 Profit After Tax 6,985 7,783 8,596 9,425 10,272 11,135 12,015 12,913 13,829 14,763 15,716 16,688 140,118 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI Pro Forma Income Statement for Year 2 Infinity Private Limited Quarter Q1 Q2 Q3 Q4 Total Sales 386,122 402,278 419,242 437,054 1,644,696 (-)Cost of Good Sold 106,631 111,247 116,093 121,183 455,153 Gross profit 279,491 291,031 303,148 315,871 1,189,543 Gross Profit Margin 72 72 72 72 72 Expenses Depreciation 9,000 9,000 9,000 9,000 36,000 Maintenance and repairs 1,200 1,200 1,200 1,200 4,800 Salaries and wages 90,000 90,000 90,000 90,000 360,000 EPF 10,800 10,800 10,800 10,800 43,200 Rent 6,000 6,000 6,000 6,000 24,000 Telephone bill 600 600 600 600 2,400 Interest expense 3,000 3,000 3,000 3,000 12,000 Utilities 3,000 3,000 3,000 3,000 12,000 Accounting fee 2,400 2,400 2,400 2,400 9,600 Insurance 3,000 3,000 3,000 3,000 12,000 Advertising 4,860 4,860 4,860 4,860 19,440 Royalty fees - 7% 27,029 28,159 29,347 30,594 115,129 Miscellaneous 600 600 600 600 2,400 Total Expenses 161,489 162,619 163,807 165,054 652,969 Profit before taxes 118,003 128,412 139,342 150,818 536,574 Taxes - 25% 29,501 32,103 34,835 37,704 134,143 Profit After Tax 88,502 96,309 104,506 113,113 402,430 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI Pro Forma Income Statement for Year 3 Infinity Private Limited Quarter Q1 Q2 Q3 Q4 Total Sales 455,757 475,395 496,014 517,665 1,944,830 Cost of Good Sold 126,526 132,137 138,028 144,214 540,906 Gross profit 329,230 343,258 357,986 373,451 1,403,925 Gross Profit Margin 72 72 72 72 72 Expenses Depreciation 9,000 9,000 9,000 9,000 36,000 Maintenance and repairs 1,200 1,200 1,200 1,200 4,800 Salaries and wages 90,000 90,000 90,000 90,000 360,000 EPF 10,800 10,800 10,800 10,800 43,200 Rent 6,000 6,000 6,000 6,000 24,000 Telephone bill 600 600 600 600 2,400 Interest expense 2,625 2,625 2,625 2,625 10,500 Utilities 3,000 3,000 3,000 3,000 12,000 Accounting fee 2,400 2,400 2,400 2,400 9,600 Insurance 3,000 3,000 3,000 3,000 12,000 Advertising 4,374 4,374 4,374 4,374 17,496 Royalty fees - 7% 31,903 33,278 34,721 36,237 136,138 Miscellaneous 600 600 600 600 2,400 Total Expenses 165,502 166,877 168,320 169,836 670,534 Profit before taxes 163,729 176,381 189,666 203,615 733,390 Taxes 40,932 44,095 47,416 50,904 183,348 Profit After Tax 122,796 132,286 142,249 152,711 550,043 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI Pro Forma Cash Flow Statement For Year 1 Infinity Private Limited Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Beginning Cash Balance 50,470 57,955 66,238 75,334 85,259 96,031 107,666 120,181 133,593 147,922 163,185 179,400 Cash Inflows (Income) Cash Sales 84,296 85,946 87,629 89,346 91,097 92,883 94,704 96,563 98,458 100,391 102,363 104,374 Available Cash Balance 134,766 143,901 153,867 164,680 176,356 188,914 202,370 216,743 232,051 248,313 265,548 283,775 Cash Outflows (Expenses) Salaries and wages 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 EPF 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 Advertising 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 Rent 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 Utilities 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Telephone bill 200 200 200 200 200 200 200 200 200 200 200 200 Insurance 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Accounting fee 800 800 800 800 800 800 800 800 800 800 800 800 Miscellaneous 200 200 200 200 200 200 200 200 200 200 200 200 Loan payment 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Interest payment 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 Taxes 2,328 2,594 2,865 3,142 3,424 3,712 4,005 4,304 4,610 4,921 5,239 5,563 Maintenance and repairs 400 400 400 400 400 400 400 400 400 400 400 400 Inventory Purchases 23,956 24,428 24,909 25,399 25,899 26,410 26,930 27,461 28,003 28,555 29,118 29,693 Royalty fees 5,901 6,016 6,134 6,254 6,377 6,502 6,629 6,759 6,892 7,027 7,165 7,306 Total Cash Outflows 76,811 77,663 78,533 79,420 80,325 81,248 82,190 83,150 84,129 85,128 86,147 87,187 Ending Cash Balance 57,955 66,238 75,334 85,259 96,031 107,666 120,181 133,593 147,922 163,185 179,400 196,588 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI Pro Forma Cash Flow Statement For Year 2 Infinity Private Limited Quarter Q1 Q2 Q3 Q4 Beginning Cash Balance 196,588 286,590 384,399 490,405 Cash Inflows (Income) Cash Sales 386,122 402,278 419,242 437,054 Available Cash Balance 582,710 688,868 803,641 927,459 Cash Outflows (Expenses) Salaries and wages 90,000 90,000 90,000 90,000 EPF 10,800 10,800 10,800 10,800 Advertising 4,860 4,860 4,860 4,860 Rent 6,000 6,000 6,000 6,000 Utilities 3,000 3,000 3,000 3,000 Telephone bill 600 600 600 600 Insurance 3,000 3,000 3,000 3,000 Accounting fee 2,400 2,400 2,400 2,400 Miscellaneous 600 600 600 600 Loan payment 7,500 7,500 7,500 7,500 Interest payment 3,000 3,000 3,000 3,000 Taxes 29,501 32,103 34,835 37,704 Inventory Purchases 106,631 111,247 116,093 121,183 Maintenance and repairs 1,200 1,200 1,200 1,200 Royalty fees 27,029 28,159 29,347 30,594 Total Cash Outflows 296,120 304,469 313,236 322,441 Ending Cash Balance 286,590 384,399 490,405 605,018 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI Pro Forma Cash Flow Statement For Year 3 Infinity Private Limited Quarter Q1 Q2 Q3 Q4 Beginning Cash Balance 605,018 729,315 863,100 1,006,850 Cash Inflows (Income) Cash Sales 455,757 475,395 496,014 517,665 Available Cash Balance 1,060,775 1,204,709 1,359,115 1,524,515 Cash Outflows (Expenses) Salaries and wages 90,000 90,000 90,000 90,000 EPF 10,800 10,800 10,800 10,800 Advertising 4,374 4,374 4,374 4,374 Rent 6,000 6,000 6,000 6,000 Utilities 3,000 3,000 3,000 3,000 Telephone bill 600 600 600 600 Insurance 3,000 3,000 3,000 3,000 Accounting fee 2,400 2,400 2,400 2,400 Miscellaneous 600 600 600 600 Loan payment 7,500 7,500 7,500 7,500 Interest payment 2,625 2,625 2,625 2,625 Taxes 40,932 44,095 47,416 50,904 Inventory Purchases 126,526 132,137 138,028 144,214 Maintenance and repairs 1,200 1,200 1,200 1,200 Royalty fees 31,903 33,278 34,721 36,237 Total Cash Outflows 331,460 341,609 352,265 363,454 Ending Cash Balance 729,315 863,100 1,006,850 1,161,061 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI Pro Forma Balance Sheet Infinity Private Limited Opening Balance Year 1 Year 2 Year 3 Fixed Assets Furniture & Fixtures 35,000 28,000 21,000 14,000 Kitchen Equipment 55,000 44,000 33,000 22,000 Renovations 90,000 72,000 54,000 36,000 Total Current Assets 180,000 144,000 108,000 72,000 Current Assets Cash and Bank 50,470 196,588 605,018 1,161,061 Prepayments 219,530 219,530 219,530 219,530 Total Current Assets 270,000 416,118 824,548 1,380,591 Total Assets 450,000 560,118 932,548 1,452,591 Equity Capital 150,000 150,000 150,000 150,000 Retained Earnings - 140,118 402,430 550,043 Retained Earnings b/f - - 140,118 542,548 Total Equity 150,000 290,118 692,548 1,242,591 Liabilities Long Term Loan 300,000 270,000 240,000 210,000 Total Liabilities 300,000 270,000 240,000 210,000 Total Equity and Liabilities 450,000 560,118 932,548 1,452,591 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI Break-Even Analysis Breakeven Value = Total Fixed Cost/ Gross Margin Year 1 Year 2 Year 3 Expenses RM RM RM Employee Salary 360,000 360,000 360,000 Advertising 21,600 19,440 17,496 Rent 24,000 24,000 24,000 Depreciation 36,000 36,000 36,000 Utilities 12,000 12,000 12,000 Telephone bill 2,400 2,400 2,400 Interest expense 13,500 12,000 10,500 Insurance 12,000 12,000 12,000 Accounting Fee 9,600 9,600 9,600 EPF @ 12% 43,200 43,200 43,200 Total Fixed Costs 534,300 530,640 527,196 Gross Margin 72 72 72 Breakeven Value 746,595 733,678 730,315 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI APPENDIX Employment Salary on monthly basis Quantity Salary (RM) Total (RM) Marketing and Sales Manager 1 3,500 3,500 Financial Manager 1 3,500 3,500 Purchasing Manager 1 3,500 3,500 Administration and Human Resource Manager 1 3,500 3,500 Supervisor 1 3,500 3,500 Main Chef 2 2,250 4,500 Assistance Chef 1 1,800 1,800 Full Time Staff 4 1,300 5,200 Part Time Staff 1 1,000 1,000 13 30,000 Sales Forecast (Food & beverages) For first year, sales per month estimated to be increased by 2% every month For year 2 and year 3, sales per year estimated to be increased by 5% every quarter Year 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total 82,500 84,150 85,833 87,550 89,301 91,087 92,908 94,767 96,662 98,595 100,567 102,578 1,106,497 Year 1 Year 2 Q1 Q2 Q3 Q4 Year 3 Q1 Q2 Q3 Q4 1,106,497 323,122 339,278 356,242 374,054 392,757 412,395 433,014 454,665 Purchase Forecast (Food & beverages) We use mark-up of 250% for the menu pricing, so the cost of purchase should be (Sales/Cost) - 1 = 250% (Sales/Cost) = 3.5 Cost = Sales/3.5 Year 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total 23,571 24,043 24,524 25,014 25,514 26,025 26,545 27,076 27,618 28,170 28,733 29,308 316,142 Year 1 Year 2 Q1 Q2 Q3 Q4 Year 3 Q1 Q2 Q3 Q4 316,142 92,321 96,937 101,783 106,873 112,216 117,827 123,718 129,904 Sales forecast(cake) We estimated we can sell 1 customised cake for every 30 normal cakes sold RM So, sales for customised cake every month : (12x83)+(3x120)+(2x220) 1796 Purchase forecast(cake) cake (1 recipe) = markup 250% cake (2 recipe) = markup 600% cake (3 recipe) = markup 800% RM So, cost of cake for everymonth = (12x83/3.5)+(3x120/7)+(2x220/9) 385 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI Other Cost Estimation RM RM RM 1)Depreciation Depreciation per year at 20% i) Furniture and fitting 7,000 ii) Kitchen equipement 11,000 iii) Renovation 18,000 36,000 2)Maintenance and Repairs Maintenance and Repairs per year 4,800 3)Rent Rental per month 2,000 4)Telephone Bill Telephone bill per month 200 5)Interest Expenses and loan payment Year 1 Year 2 Year 3 Long term loan balance 300,000 270,000 240,000 (-) loan repayment 30,000 30,000 30,000 Interest payment per year 13,500 12,000 10,500 Long term loan balance at year end 270,000 240,000 210,000 6)Utilities Utilities fee per month 1,000 7)Insurance Insurance per year 12,000 8)Advertising Year 1 Year 2 Year 3 Advertising fees per month 1,800 1,620 1,458 Advertising fees decrease 10% per year because our shop will be well known year after year. 9)Miscellaneous Othee expenses per month 200 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI 29
Critical Risk Factors Strong Competitors Lifestyle cafes of similar concepts are mushrooming nationwide due to the high demand of such dining concepts. However, the trend is beginning to shift from people dining at home towards dining outside as the time they have after work is getting less, food service industry continues to be one of the largest industry in Malaysia.
Global Disease With the global pandemic outbreak of H1N1 influenza, people are likely to stay indoors rather and would rather dine at home or order food because of the potential lethality of the virus. This directly affects our business because of the widespread of the virus. This is inherent for us and we cannot do anything to reduce this problem.
Economic Recession Malaysia is going through a contraction in economy since the last quarter of year 2008. This directly indicates that consumer's purchasing power has drop and consumers would not spend lavishly. However, signs of economy recovering are beginning to pick up as of the third quarter of year 2009 and it's likely to be recovered in early year 2010.
Unnoticing, the food service industry is not affected considerably as there are still signs that the industry is growing at a positive rate with consumers want more of it.
Supplier Since our suppliers are fixed by franchisor, it may be a long way journey for the ingredients to be delivered to our location because of our location at a new area in Kampar. Therefore, the freshness of our raw materials might be jeopardized. To ensure the quality of our materials are at highest level possible, we would request our suppliers to upgrade their delivery method and packing method during delivery period to ensure the materials retain their quality. COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI 30
Conclusion Before we enter into the food industry in Kampar, we had done sufficient amount of market research and analyzed the business environment to determine the feasibility of venturing into the target market. Our analysis shows a positive sign of market trends towards what our business plan is offering.
We had planned our business venture by having marketing plans, operation plan, implementation plans and financial projections.
Our marketing plan is written thoroughly by using the 4Ps rule of thumb to be as concise and detail as possible. We detailed out all our product mix, selection of location, promotion strategy used and pricing strategies used. By combining our competitive advantage of riding on the good brand name value of Secret Recipe, we are able to gain a high markup on cost. Our special pricing strategy enables us to maximize our table turnover during peak period and thus increase our sales to the maximum.
Our implementation plan allows us to complete all our business operating procedures in time for grand opening on 1 st of January 2010. With this implementation plan, we are right on track to start operating in 3 months period.
Nevertheless, we are prepared for any uncertainties and risks that might hinder our business from operating smoothly. We are confident that we will ride through the storm of economic recession and our risk will be minimized with the strategies that we used.
Upon evaluating all the researches and analysis, we are confident that our business will have a steady and promising growth in the short term and a steady profit margin in the long term due to the strict adherence and believe in the success of Secret Recipes brand name. We are of the opinion that our business plan will be a huge success and will win over the hearts of Kampar people.
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Appendixes: Beverage & Desserts Menu
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Secret Recipe Caf Food Menu
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COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI 36
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Shop Location
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Shop layout
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Promotion
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KAMPAR. (n.d.). The secret of Secret Recipe. Retrieved July 14, 2009, from http://biz.thestar.com.my/news/story.asp?file=/2009/3/21/business/3471796&sec=busins
LENG, F. T., & BAHRI, S. (n.d.). Bright future for Kampar. Retrieved July 25, 2009, from http://thestar.com.my/metro/story.asp?file=/2009/6/4/north/4010985&sec=North
Malaysia Food and Drink Report Q3 2009 (download) - Food Market Research Reports. (n.d.). Retrieved July 15, 2009, from http://www.just-food.com/store/product.aspx?id=77601
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SHOPLOT NEAR KAMPAR PERAK UTAR KTAR FOR RENT LEASE in Malaysia @ Adpost.com Classifieds > Malaysia > SHOPLOT NEAR KAMPAR PERAK UTAR KTAR FOR RENT LEASE in Malaysia,free,malaysian,classified ad,classified ads. (n.d.). Retrieved July 15, 2009, from http://www.adpost.com/my/homes_offices/36677/
Secret Recipe |Cyber Cafe, Internet Cafe, Coffee Shop, Coffee House, Bistro Cafe, Beach Caf | Ad | 88DB Malaysia. (n.d.). Retrieved July 14, 2009, from http://my.88db.com/my/Services/Post_Detail.page/Food_Beverage/Caf%C3%A9/?PostI D=51382
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