1.

0 INTRODUCTION

1.1 Name of business

SA BAKERYS
1.2 Nature of business
SA BAKERYS sells various type of high quality product of cakes and excellent
customer satisfaction through efficient customer service and trust. With creativity,
with just a plain biscuit, Milo, cocoa powder and cream milk. SA BAKERYS in the
production of this product, SA BAKERYS has involved in wide range of raw
material suppliers such as the plain biscuit itself. Our bakery produces a delicious
product in order to fulfill customer satisfaction and needs. We believe that customer
need a new taste in this bake industry and we make innovation into this bakery
industry. Our bakery not only produces kek batik but also we do the kek batik oreo
cheese and kek batik cheese to fulfill our customer satisfaction. Our bakery receive
orders form the customers according to their tastes. In addition, the quality of the raw
material is so important so that the resulting of the end product will satisfied the end
customer.
1.3 Industry Profile
SA BAKERYS has been an important source of income to the people out of the city
and also the city for innovating a normal cake to the delicious and more trendy cakes.
This make this small industry become known to the others and can be passing the
entrepreneurship as the cake maker knowledge through generations. This industry
was created in order to study how the producers could work with the customer wants
and needs an also for the new idea of innovating the product.
This cake is one of the innovative and creative ideas to produce variation for
customer. This type of new cake will worth it when someone know how to produce it
from various type of raw material such as cheese, oreo biscuit, nestum and oat.
However, demands of this type of cakes are highly in the city center area because of
the lack of time, the urban population do not have the opportunity to create their own.
1.4 Location of business
SA BAKERYS is located at lot 1236 Kawasan Perindustrian, Padang
Tembak,Pengkalan Chepa, 16800 Kota Bharu, Kelantan. The location strategy
because it is at the city center where there are the focus of the public and potential to
attract many user and customer.
1.5 Date of commencement
 07 July 2014
1.6 Factor in selecting the proposed venture
SA SDN BHD have decided to establish the cake business due to the opportunity and
potential to make profit at the Kota Bharu area. Besides that, there are several reasons
that attracted to this business and its location. Altogether, there are two reasons why
decided to establish SA SDN BHD.
Firstly, SA SDN BHD chooses the city center area because of the possession
population density is high. However, with the higher population SA SDN BHD have
potential to gain high profit. SA SDN BHD offers a product with affordable prices, so
that it will not be a problem to our company to select businesses in the city center
because the city center of population is more concerned with the cost of the product.
Second, SA SDN BHD decided the city center are because it is near to the
shopping mall and all the facilities there. SA SDN BHD selecting the location easily
accessible to customers. In addition, rental cost is lower than elsewhere.
1.7 Future prospect of the business
SA SDN BHD always renew the taste of the product to meet customer tastes that
always changing from time to time. Customers are individuals or maybe a firm that
buy and eat the product. This is because of the unique taste of the product that makes
them more interested to know more about the product. In addition, unique tastes of
the product can attract a customer or more to approach it. This is because to improve
and enhance the product by the reaction of the market.
As a conclusion, it is important to ensure that the bakery will continue to earn
high returns and can ensure the bakery can continue to grow more rapidly in the
future. Therefore, the company must ensure that the product development process are
implemented to be in accordance with the current state of the market and customer
needs so that it can produce the products favored by the consumers.
2.0 Purpose of preparing business plan.

2.1 This business plan is prepared as a guide for managing the purpose business venture
in this bakery industry. Since this is the new company, a guide are very important to
assist us in understanding the nature of the bakery industry and the working
component of the company.

3.0 Business/Company Background

3.1 Name of Business : SA BAKERYS

 3.2 Business Address : Lot 1236 Kawasan Perindustrian, Padang
Tembak,Pengkalan Chepa,
16800 Kota Bharu, Kelantan.
Correspondence Address : same as above.
3.3 Telephone Number : 01126082312
Fax Number :-
E-mail Address : SA_Bakery@yahoo.com
3.4 Form of Business :
3.5 Main Business Activity (ies) : Provides various type of kek batik.
3.6 Date of commencement : 07 July 2014
Date of Registration : 10 August 2014
Registration Number : S5997xxx
Initial (own) Capital : RM 70,000
3.7 Name of Bank : Maybank Berhad
Bank Account Number : 01300 xxxx xxxx

4.0 Background of Owner

4.1 Personal particulars of owner

Name of owner : Muhammad Syahirul Asraf Bin Mat Roafi
Identitidy Card Number : 930xxx-xx-xxxx
Permanent Address : Lot 757, Kg Bukit Bidang,
16810, Pasir Puteh,
Kelantan.
Telephone number : 01126082312
E-mail address : S_Bakery@yahoo.com
Date of birth : 07 July 1993
Marital status : Married
Academic qualification : Degree in Management
Course attended : Forum on Entrepreneurship
Seminar Managing Business
Skill : Designing, make shape
Experience : Worker in Bakery
Present occupation : Designer
Capital contribution : RM 4,200.00

5.0 Background of proposed project

5.1 Physical location

SA BAKERYS is located at lot 1236 Kawasan Perindustrian, Padang Tembak,
Pengkalan Chepa, 16800 Kota Bharu, Kelantan. The location strategy because it is at
the city center where there are the focus of the public and potential to attract many
user and customer. Generally, the premise is a shop lot that situated at the centre of
the town with many facilities nearby.
 5.2 Price of premise
Since the premise is commercial business premised owned by MAYBANK, the rent is
same with the market rate. Expenses for the rent cost about RM 700 per month.
5.3 Distance from the source of raw materials
We got our supply from suppliers from around Kota Bharu area. Our main supplier is
HAFIZAN SDN BHD which is located not far from the premise. The suppliers
always make sure that their material are not faulty, and it according to the order they
have received. Also, the suppliers always guarantee that the materials are always
enough.
5.4 Availability of manpower.
Since this business requires some skilled workers, the search for available manpower
needs to be expanded to the others areas. For this new business, we plan to hire two to
three staff to help in managing the business operation. While I maintain the number of
the workers in the first year, we will search for more staff from the local people in
Kota Bharu.
5.5 Transportation facilities
Customers can reach to our premises by bus, taxi and else. The location is also
convenient for our supplier to deliver the raw materials.
5.6 Distance from customers
Our premise is located 5 km from the bus station and Tesco area, which makes it very
easy to frequent.
5.7 Basic amenities (Electrical, Water, and telephone Facilities)
This premise is completed with water and electricity supplies, telephones lines, and
also internet connection. This amenities are provided in order to make sure that all the
workers can perfoms and accomplish their jobs efficiently and more productive.

6.0 Organization/management/administration plan

6.1 Organization vision, mission and objectives

Table business plan 1.1 Logo, vision, mission and objectives of SA BAKERYS

Logo
of business
 Companys
vision SA Bakerys will be living proof that caring, integrity, hard work
and innovation at all levels create success.

Companys Our mission is to enhance our customers business. We will do this

missions by providing the highest quality bakery products and the best
possible services to the food industry

6.2 Organizational chart

MANAGER

MOHD SYAHIRUL ASRAF

ASSISTANT MANAGER

HAIKAL MOHAMMAD
MARKETING MANAGER ACCOUNTANTS

TUAN HAFIZUL ABDUL MUHAIMIN

BAKERS 1 BAKERS 2 BAKERS 3

Figure 1.1 Organizational structure
HAFIZAH AKMAL of SA BAKERYS HAATIKAH

6.3 Manpower planning

SA BAKERYS has one manager, one assistant manager, one marketing manager, one
accounting, one financial manager and three experienced bakers to manage and
execute the operation of the business shown in Table 2

POSITION NUMBER OF PERSONNEL

Manager 1
Assistant Manager 1
Marketing Manager 1
Accountants 1
 Bakers 3
Table 2 : Position and Number of personnel in SA BAKERYS

6.4 Schedule of tasks and responsibilities

Table 3 describes the tasks and the responsibility of every position. The following
functions and responsibilities have been identified and will be delegated to the
respective individual to ensure the smooth operation of the business.

TASK RESPONSIBILITIES/JOB DESCRIPTION

Manager Monitor the productivity of the products so that
are systematic orderly.
Plan and manage the task.
Make decision and solve problems among staff.
Ensure staff compliance with company rules and
always ethical company.
Control the overall management of the business.

Assistant manager Help managers to handle the job.

Marketing Manager Use communication skills to deals with the
customer behavior.
Be prepared to meet with customers who know
their needs and problems.
Identify measures and strategies that need to be
done on the user to gain an advantage in the
market.
Create a strategy and monitoring of the target
market and competitor activity to better
planning company.
Accountants Calculate credit and debit of the business
Control the cash flow.
Bakers Bake cakes for sales to the customers.
Receive order from customers.
Invented new recipe.
Table 3: Schedule of tasks and responsibilities of employees

6.5 Remuneration plan

For our bakerys we have chosen the EPF scheme to be given to the employees. Table
4 illustrate the remuneration plan for each employee in SA BAKERYS.

POSITION NO. SALARY ALLOWANCE EPF SOCSO TOTAL

(RM) (RM) (RM) (RM) (RM)
Manager 1 1300 - 140 30 1470
Assistant 1 1000 - 100 20 1120
manager
Marketing 1 1000 - 100 20 1120
manager
Accountant 1 1000 - 100 20 1120
s
Bakers 1 900 - 90 16 1006
Bakers 1 900 - 90 16 1006
Bakers 1 900 - 90 16 1006
Total 7 7000 - 710 138 7848
Table 4 : Remuneration Plan
6.5.1 Salary
Basic wage or salaries will be paid in cash as stipulated in
the employment contract. Wages will be paid once a month
to the workers and the payment will be paid at the early of
the month. This salary will be debited on their accounts on
the 2nd 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.
6.5.2 EPF and SOCSO contributions
EPF contributions will be deducted from all workers
salaries. The company will also contribute to SOCSO which
2% of the worker basic salary.
6.5.3 Working Hours
Every employee who works in SA BAKERYS has work for
nine hours per day, starting from 10.00 a.m until 7 p.m
every day.
6.5.4 Medical Allowance
Medical allowance will be provided in the event of illness.
 6.5.5 Maternity Benefits
Female employees are entitled to 60 days maternity leaves
for every confinement period. Allowance is not given to
employees who have more than five surviving children.
6.5.6 Insurance
Insurance coverage will be given to all workers, the
premises buildings bought or rented as well as all means of
transportation.
6.5.7 Bonus
Bonus will be paid depending on the bakers job
performance.
6.5.8 Compensation and benefits to workers.
Compensation and benefits are given to workers to
improve their performance and job satisfaction.
6.5.9 Holidays
All workers are entitled to have at least three rest day that
is can be chosen by the workers.
6.5.10 Annual leave and sick leave
Each worker will be given an annual leave of 16 days. In
term of sick leaves, the medical certificate has to approve
by a registered medical practitioner. If an employee is
hospitalized, they is entitled to 60 days of sick leave
whereby their wages will still be paid. But, if the employee
is hospitalized more than 60 days, their wages will not be
paid.

6.6 List of shop equipment suppliers

SA BAKERYS has bought the shop equipment and supplies as listed
in table 5 below :

NO TYPE OF QUANTITY PRICE PER TOTAL

EQUIPMENT UNIT (RM) AMOUNT
(RM)
1 Oven 2 1200 2400
2 High speed mixer 1 1700 1700
3 Air conditioner 1 1000 1000
4 Furniture 1 set 3000 3000
 5 Baking Supplies 700 700
(milk, sugar, cocoa
powder, orea,
nestum, flour)
6 Blender 1 120 120
7 Baking Equipment 1700 1700
(refrigerator, tray,
spoon)
TOTAL 10620
Table 5 : List of equipment and suppliers

RM RM
Fixed assets / Capital expenditure
-
Working Capital / Monthly expenditure
Manager Salary 1300
Worker Salaries 5700
EPF 710
SOCSO 138
Shop Maintenance 100
Shop Supplies 200
Rental 700
Water Bill 150
Electricity Bill 250
Telephone Bill 150
9398
Other Expenditure
Clerical and promotion 150 150
TOTAL 9548
Table 6: Administrative expenditure
7.0 Marketing plan/Analysis

7.1 Description of products or services

Table 7 below describes the products offered by SA BAKERYS and
the price or rate of each product.

TYPE OF PRODUCTS PRICE (RM)

Kek batik 20
Kek batik Oreo 25
Kek batik Nestum 25
Kek batik cheese 30
Table 7 : Some of the SA BAKERYS Product
7.2 Target market
The target market of the SA BAKERYS is comprised of the residents
of the housing area in Kota Bharu and workers in the government
and private sectors in the Kota Bharu.
7.3 Market size
The market size is calculated to be 10,000 families from the area
listed below with a rough estimation of RM 3000 per month.
7.4 Competitors (strengths and weakness)
Based on the market survey done earlier this year 2016, we found
that there several competitor to our business, which they also do
this type of cakes that we made.

COMPETITORS PRODUCT STRENGTH WEAKNESS

Moon Cakes House Cakes and Very popular Not many
Enterprise Cookies among people choices.
Jalan Lurus, 16/8
Kota Bharu,
Kelantan
Huda Cakes Cake Customer focus. Higher price.
Enterprise
Jalan Sultan
Muhammad,
 16800, Kota
Bharu, Kelantan.
Kings Bakery Cake Competitive Not many
Enterprise pricing choices.
Jalan Taman Indah,
16800, Kota
Bharu, Kelantan.
Table 8 : Business Competitors.

7.5 Market Share

The target market for this business is formed mainly for all. We are
not able to identify the actual market share for our business as the
data is ambiguous. However, we have taken our market share as
25% of the number of the population the age of 7-40 tears old who
lived or work in the area listed in the table 9

NO NAME SHARE PERCENTAGE VALUE

(%)
1 Moon Cakes House 22 5250
Enterprise
2 Huda Cakes Enterprise 15 3750
3 Kings Bakery Enterprise 20 5750
4 SA BAKERYS 30 7000
5 Other 13 3750
TOTAL 100 25500
Table 9: Market share after the entry of SA BAKERYS.

7.6 Sales Forecast

Our sales overcast for three consecutive years is shown in table 10

MONTH 1ST YEAR 2ND YEAR 3RD YEAR TOTAL REMARKS

SALES
JANUARY - 6325 7273.75 13598.75
FEBRUARY 5500 6325 7273.75 19098.75
MARCH 5500 6325 7273.75 19098.75
APRIL 5500 6325 7273.75 19098.75
MAY 5500 6325 7273.75 19098.75
JUN 5500 6325 7273.75 19098.75
 JULY 5500 6325 7273.75 19098.75
AUGUST 5500 6325 7273.75 19098.75
SEPTEMBER 5500 6325 7273.75 19098.75
OCTOBER 5500 6325 7273.75 19098.75
NOVEMBER 5500 6325 7273.75 19098.75 FESTIVE
MONTH
DECEMBER 5500 6325 7273.75 19098.75
TOTAL 61600 77165 88739.75 227504.75
Table 10 : Sales forecast for Three Consecutive Years.

7.7 Marketing strategy

The marketing strategy of the SA BAKERYS is summarized in the
table 11

CRITERIA DESCRIPTION
Product We ensure that the product offered to the
strategy customers are of high quality and meet the
customer needs and demands. To maintain the
high quality of our products.
Ensure that all measurement are accurate
Discuss with customers beforehand if there
are any specific details or requests
Receive a specific number of orders each
month to ensure the quality of products is
maintained and orders completed on time.
Pricing Strategy The product we offered is reasonably prices to
ensure that they remain affordable to customers.
The business also keeps track of the changes in
product of quality observing the rates offered by
our competitors so that our customers are not
undercharged or overcharged.
Place Strategy The location of our business is very strategic
because it is located at city center and where the
focus of the public and the potential to attract
many users and customers. This area also has a
few government and private agencies where most
 of the residents work in place.
Promotion Our promotion will be done using flyers and
Strategy business cards. At the moment, were rely more on
worth of mouth promotion by our existing
customers as we believe that this cost effective
and convincing in order to attract need customers.
Table 11: Marketing Strategy
7.8 Marketing budget
The marketing budget is mentioned as part of our administration
expenditure as shown in table 10.

8.0 Operational plan

The operational plan is one of the most important factors to consider

business. Like other companies, our target is to ensure that our services
the best in quality and able to satisfy our customer needs and wants. She
a systematic operational plan is formed so that our business runs smooth
and achieved its objectives.
8.1 Operational objectives
To ensure our business is profitable and runs smoothly
To create various type of cakes
To optimize customer satisfaction and fulfill their expectations
towards our ability to provide high quality products
To achieve consistency and stability in our production
To ensure the quality of our products meets the established
standards
To resolve any of the operation problem and make all the
operation process run efficiently
8.2 Business Hour
Our business is open for nine hours starting from 10.00 a.m until 7
p.m every day except FRIDAY.

8.3 Operational Layout

8.4 Operational process
The operational process of our business is illustrated by figure

WEIGTHING

MIXING

PUT INTO CUPS

COOLING

8.5 Amenities and Facilities

The premise of SA BAKERYS has all the amenities such as water,
electricity, air conditioning, and telephone lines. The building SA
BAKERYS is situated in a city center area where facilities such as
roads and public transportation are readily available.
8.6 Permanent Assets and Required Items
The permanent assets and required items of SA BAKERYS are
shown in table 12

RM RM
Fixed assets / Capital expenditure
-
Working Capital / Monthly expenditure
Manager Salary 1300
Worker Salaries 5700
EPF 710
SOCSO 138
Shop Maintenance 100
Shop Supplies 200
Rental 700
Water Bill 150
Electricity Bill 250
Telephone Bill 150
 9398
Other Expenditure
Clerical and promotion 150 150
TOTAL 9548

8.7 Estimation of purchase for three years

The estimation in table 13 covers all the materials used to making a
cake.

ESTIMATION OF PURCHASE FOR THREE YEARS

MONTH 1ST YEAR 2ND YEAR 3RD YEAR TOTAL
SALES
JANUARY - 800 900 1700
FEBRUARY 1000 1100 1250 3350
MARCH 700 800 900 2400
APRIL 700 800 900 2400
MAY 1000 1100 1250 3350
JUNE 700 800 900 2400
JULY 700 800 900 2400
AUGUST 700 800 900 2400
SEPTEMBER 700 800 900 2400
OCTOBER 700 800 900 2400
NOVEMBER 1000 1100 1250 3350
DECEMBER 1000 1100 1250 3350
TOTAL 8900 10800 12200 31900
Table 13: Estimation of Purchase for Three Years.
8.8 List of the raw materials, quantity and cost for a month

RAW MATERIALS PRICE PER UNIT QUANTITY TOTAL COST

(RM) (RM)
Biscuits 4 10 pack 40
Milo 22.90 5 pack 114.5
Cocoa Powder 1.8 10 pack 18
Oreo 2.60 10 pack 26
Nestum 19.90 5 pack 99.5
Packaging 1.50 500 750
Others - - 50
TOTAL 1098
 Table 14 : List of Raw Materials, Quantity and Cost for a
month

8.9 Material suppliers

Materials for SA BAKERYS will be obtained from a supplier shops as
shown in table 15 below

NO NAME AND ADDRESS TYPE OF MODE OF

MATERIAL PAYMENT
1 Cake Mold Suppliers Packaging Cash
Kelantan
Jalan Tunku Abdul
Rahman,
15200, Kota Bharu,
Kelantan
2 Chiller Cake Display Raw Materials Cash
Kompleks Baharu,
16800, Kota Bharu,
Kelantan
3 Cake and Pie Slicer Bakers Cash
Jalan Kuala Krai,
Equipment
15050, Kota Bharu,
Kelantan
Table 15 : List of Suppliers

8.10 Cost estimation of service / order

Based on the size of the jar
i. Large : RM 20.00
ii. Medium : RM 10.00
iii. Small : RM 6.00

9.0 Financial plan

A financial plan is important for the overall success of SA BAKERYS
because it help to
Ensure that the initial capital is sufficient.
Help business in determining the size of investment regarding the
project implementation cost, and identify and proposing the
relevant sources of finance.
 Also help the business to appraise the variability of the project
before actual investment is committed.

9.1 Project implementation cost schedule and sources of finance

PROJECT IMPLEMENTATION COST AND SOURCES OF FINANCE

PROJECT IMPLEMENTATION SUGGESTED SOURCES OF
COST FINANCING
Requireme Cost (RM) Loan Hire- Own
nts (RM) Purcha Contribution
Cash Existin
se (RM)
(RM) g
Assets
(RM)
Fixed 3000 8000
Assets 0
Oven 2400
High 1700
Speed
Mixer
Air 1000
Conditione
r
Furniture 3000
Blender 120
Baking 1700
equipment
9920

Working 1 7000
Capital
(Per
Month)
Other
Expenses
Registratio 500
 n
Deposit 1000

TOTAL 18420
Table 16 : Project Implementation Cost Schedule and Sources of
Finance

TABLE 17 1ST YEAR

TABLE 18 2ND YEAR
TABLE 19 3RD YEAR

9.2 Pro forma cash flow statement for three years

YEAR 1ST YEAR (RM) 2ND YEAR (RM) 3RD YEAR (RM)
CASH INFLOW
Owners Capital 7000
(cash)
Cash sales 70500 90000 100000
Credit Collection
Loan Payment 20000
TOTAL CASH
70500 90000 100000
INFLOWS
CASH PAYMENT
Administrative
Expenses
Permanent Asset 10000
Manager Salary 15600 17000 19000
Building Rent 8400 8700 9100
Workers Salaries 30000 32000 34000
EPF 8520 8700 8900
SOCSO 1656 1800 2000
Water Bill 1800 1980 2100
Electricity Bill 3800 3960 4100
Office 1200 1320 1320
maintenance
Office Expenses 1200 1320 1320
Marketing
Expenses
Promotion 2400 2640 2840
Operational
 Expenses
Baking Materials 7000 6000 7300
Registration
Deposit
Loan Repayment
TOTAL CASH 80000 83000 85000
OUTFLOWS
EXCESS/ DEFICIT 19000 8000 8000
OPENING 100100 275000 325000
BALANCE
FINAL BALANCE 190000 280000 350600
Table 20 : Pro Forma Cash Flow Statement for Three Years

9.3 Pro Forma Balance Sheet

SA BAKERYS
PRO FORMA BALANCE SHEET STATEMENT FOR 1ST YEAR
YEAR 2016
ASSETS
Fixed Assets ( Non-Current Asset) 9000
Furniture
Operational Machinery
Air Conditioner 1000

Current Assets
Cash In Hand and Bank 20000

Other Assets
Deposits 1000
TOTAL ASSETS 31000

Owners Equity
Capital 7000
Accumulated Profit -900

Long term Liabilities

Term Loan 22000
Current Liabilities
Accounts Payable
Revenue
TOTAL EQUITY AND LIABILITIES 28100
Table 21 : Pro Forma Balance Sheet Statement for 1st Year