ENT 300

FUNDAMENTALS OF
ENTREPRENEURSHIP

ELEGLOW ENTERPRISE

INTRODUCTION

Industry Profile
The most important thing to realize about the scarf
industry is that it changes constantly.
Trends and styles come and go with the seasons, so it
is necessary for those working in the industry to be
adaptable and ready adjust to the latest market
demand.
If it's design that you're interested in there are a few
things to consider.
An entrepreneur must also have the ability to predict
and understand what consumers want even if that
differs from what he or she thinks is fashionable.

FACTORS IN SELECTIONG THE

PROPOSSED BUSINESS
Availability of Resources
Market Demands
Current Business Trends
Good Location
Capital or Fund

PURPOSE OF
THE BUSINESS
PLAN

PURPOSE OF THE BUSINESS PLAN

To give us a chance to view and evaluate the business

To make research and evaluate whether the business are having a profit
or loss.

To venture capitalist, investor and banker in order to raise capital and

obtain support for the venture

As guidelines of routine management in the business

To give management an opportunity for entrepreneur to assess, view &

appreciate the business venture objectively, critically & practically

To evaluate the project viability and growth potential

COMPANY
BACKGROUND

MAIN ACTIVITY
Our company main activity is providing and selling
fashion scarf. Our scarf have an exclusively Glow in the
Dark effect.

LOCATION OF THE BUSINESS

Physical Location
Our physical company location is located at Kelana
Centre Point which is a great location that can help
improve our sales and productivity.

 Map of the location

ORGANIZATION
PLAN

COMPANY VISION, MISSION AND OBJECTIVE

VISION
To be a famous fashion of scarf producer in the region and provides
the needs of the global Muslimah community
MISSION
To be a market leader in the production and distribution of fashion
scarf product in Malaysia within five years and in Asia within the 15
years
OBJECTIVE
To establish and operate an international standard production
needed for fashion scarf product in Malaysia

ORGANIZATION CHART
General Manager / Administration
Muhammad Abdullah

Marketing Manager
Nabila binti Awang
Ahmad Kafli

Operating Manager
Nur Illya Syaheera
bt Mat Rodzi

Worker

Deliveryman

Financial Manager
Nur Amiza Sahira
binti Mad Zali

ORGANIZATION BUDGET
Fixed

Monthly

Assets

Expenses

Expenses

(RM)

3000

Salaries
EPF

3200

Contributio

384

n
SOCSO

80

130

3000

3664

130

Item

Furniture
and Fittings

Telephone
Deposit
Total

Other
Expenses

MARKETING
PLAN

PRODUCT DESRIPTION
Our company provide scarf for Muslims women. We bring
the freshest scarf prints and Glow in the Dark designs.
Our scarfs are designed exclusively by our company
because of the Glow in the Dark feature that we add.
The most common fabrics we select include polyester and
silk to ensure the best and most comfortable fit possible.
The finishes we carry most often are chiffon, satin and
crepe and most importantly our exclusive Glow in the
Dark feature.

TARGET MARKET
Demographic segmentation

We have decided to open our first branch in Kelana Centre Point, Petaling
Jaya.

Our chosen location is basically a large town with a large number of

populations and it shows huge potential to be developed ours product more.

Our companies is also located near others famous building, an educational

institution and large portion of population, which is our primary target since
most of our customer will consist of residential because scarf are always be
the target for career woman to exchange their scarf on going to works

Our secondary target will be the teenager that lives around Kelana Jaya city.
We mainly attract the teenagers that love in unique style of scarf.

MARKETING STRATERGY
Product
Brand
Fioxa is a brands named of our product.
Our company provide uncommon scarf which is Glow in The Dark.
In addition, our brand motto Love it, Grab it, Wear it is an
attraction because it will make people what the difference between
our scarf and the other scarf in market.

Quality
Quality of our product is definitely suitable with our business.
As we convince our customer due to our quality of the product by
maintaining the light of the scarf.
We also express elegance and sophistication.
In addition to this, the material are so soft and pleasant to wear.
Nothing can compare with the smoothness and also keep us cool and warm
in any situation and seasons

Design
A sophisticated design is the sign of luxury scarf.
It means that the brands has invested time in creating something really
unique and uncommon scarf.
We are not always aware of it but the beauty of a scarf comes both from its
design and from the number and the subtlety of its colours.
A plain scarf or a scarf with a very few colours is fine if you like it this way

Packaging

We provide a nice and elegance packaging for our customer.

A special box if the customer buy more than three scarf meanwhile for
the customer only one, he or she will get plastic bag.

At the plastic bag and the box we create an elegance and simple design
that will attract customers interest.

At the bag and plastic bag, we put our number, logo, and email.

Our companys had choose pink and black as a theme for elegance and
simple design to colour our packaging.

Labelling
Labelling performs several functions such as identifying, grading,
describing or even promoting the product.
Our labelling product is about the name of our company Eleglow Enterprise.
Our motto Love it, Grab it, Wear it also will be display in our label.
We put the fabric and material as a guidance to customer to avoid they
wash the scarves too rough.

 Price (Cost-based pricing)

TYPE OF

PRICE OF SCARF

PRODUCT
Fareeda

RM 200

Aidijuma

RM 100

Ariani

RM 150

EleGlow

Price = cost per unit + mark

up
= RM 145 + (24% x RM145)
= RM 179.80 @ RM 180

 Distribution
Our strategies are involved many areas which are through the
wholesalers then being distributed to the retailers and finally
being distributed directly to the customers.
Direct to Consumer
EleGlow Enterprise
Customer
We sell and manufactured our products which are scarf directly to
the customer which are the one who pays to consume our product
based on their satisfying needed and wants toward the scarf

Direct to Retailer
EleGlow Enterprise
Customer

Retailer

We had manufactured our scarf to the one intermediary level, the

retailers which are a business or person that sells goods to the
consumer.
So that we can expands to coverage by increasing the exposure
and capturing the market and boosting our brand name within short
time.
The selection of number and location widely depend on our
coverage areas intended by our manufacturer EleGlow Enterprise
through enlarge our product to the Malaysian market.

Promotion

Banner
We will put our banner on the front of the company office and alongside of
the main road of Jalan SS 7/19 which will allow the pedestrian to see our
banner. The cost of the banner is RM50.00 each. The size of the banner is
4 X 20 feet.

Flyers
We will distribute a flyers throughout the Kelana Centre Point offices and
throughout the residence area. The flyers will be cost at RM50.00 per
bundle. Each bundle will consist of 1000 of papers.

Business Card
We will give our business card to our customer and supplier that come to
make business with us. The cost of the business card is RM70.00 per pack

Signboard
We will put a company signboard on the front of the company office. The
signboard will be cost at RM3000.00

Flyers inside newspaper

We will put our flyers inside the newspaper such as Berita Harian which will
cost RM 250.00. The total of flyers we will put inside the newspaper is 5000
pieces.
Social Media
We will advertise our product on social media by using internet on
websites, email and social network such as Facebook and Twitter.

MARKETING BUDGET
Item

Fixed Asset

Monthly

Other

Expenses (RM) Expenses (RM) Expenses (RM)

Laptop

900

3000

Salary

1500

Wi-Fi

130

EPF

180

SOCSO

37.50

Flyer under

250

Deposit Wi-Fi

100

Banner

65

Flyers

50

Business Card

70

3900

2,097.50

285

Signboard

Newspaper

Total

OPERATION
PLAN

PROCESS PLANNING

Activity Flow Chart

Delegate the fabrics into the storage areas, place those fabrics based on gred
arrangement.

In the storage area, check the quality of the fabrics and separate the fabrics.

Drawing area to create the design and bring to measurement area then bring to
cutting area.

Cut the fabrics based on measurement required.

Transfer the fabrics from cutting area to sewing machines area for sewing process.

Shredded and put the fabrics into pieces in the sewing machine for lining process of
every edges of the scarf.

After sewing process, fabric or knitted material used for making scarf.
Next, transfer fabrics colouring area for ultimate step of glowing in the dark scarf.
Last step is moved the fabrics from colouring area to drying area process for
complete look of scarf. The total processed to complete dry within 24 hours.

Process Flow Chart

OPERATION LAYOUT

OPERATION BUDGET
Item

Fixed Assets
Expenses (RM)

Monthly
Expenses (RM)

Other Expenses
(RM)

Machine and
equipment

2400

Van
Shop rental
Utilities
Insurance
Salary
EPF
Oil and gas
SOCSO
Shop Deposit
Maintenance
License
Road tax
Overhead
Expenses

22000

6000
1280
900
3300
396
800
82.50

1000
250
130
90
158

24400

12, 785.50

1628

FINANCIAL
PLAN

PROJECT IMPLEMENTATION COST

SCHEDULE

Capital expenditure:

RM

RM

RM

Marketing:

Signboard

3000

900

3900

Operation:

2400

22 000

24400

Administration:

3000

3000

Laptop

Sewing machine (2)

Van

Furniture and fittings

Sub-total

31 300

Working capital (1 month):

Marketing:

1717.50

Flyers under Newspaper

250

Wi-Fi

130

2097.50

Operation:

Salary for Operation Manager (EPF+SOCSO)

1717.50

Salary for Operational Assistant

1030.50

(EPF+SOCSO)

1030.50

3778.50

Salary for driver (EPF+SOCSO)

6000

Shop rental

1280

Salary for marketing manager (EPF+SOCSO)

Utilities (water and electricity0

900

Insurance

800

8980

Toll and mileage

Administration:

1946.50

Salary for General manager (EPF+SOCSO)

1717.50

3664

Salary for Financial manager (EPF+SOCSO)

Sub-total

18520

Other expenditure:

Marketing:

Banner

65

Flyers

50

Business cards

70

185

Operation:

Maintenance

250

License

130

90

158

628

Deposits:

Wi-Fi

100

Shop

1000

Utilities ( water and electricity)

640

Telephone

130

1870

Road tax
Overhead expenses

Sub-total

2683

Grand total

52 503

Add:

Contingency cost (10%)

5250.30

TOTAL PROJECT IMPLEMENTATION COST

57 753.30

SOURCE OF FINANCING

Internal Sources :
Cash ( 4 partners )
Muhammad bin Abdullah
Nabila binti Awang Ahmad Kafli
Nur Illya Syaheera binti Mat Rodzi
Nur Amiza Sahira binti Madzali

Assets :
Van

Sub-total

External Sources :

Term loan

Sub-total

Other Sources :
TOTAL SOURCES OF FINANCE

RM

RM

3 938.32
3 938.32
3938.32
3938.32

22 000

15 753.30

22 000

37 753.30

20 000

20 000

57 753.30

PRO FORMA CASH FLOW STATEMENT

(ANNUALLY ONLY) FOR 3 CONSECUTIVE
YEARS

Year 1

Cash inflow :
Equity Contribution Cash ( 4 partners )
Term Loan
Sales
Total Cash Inflow :
Cash Outflow :
Marketing Expenditure :
Salary for Marketing Manager
Flyer under Newspaper
Wi-Fi
Others Marketing Expenses :
Banner
Flyers
Business card
Operation Expenditure :
Raw Material
Direct Labour
Shop Rental
Utilities ( Water & Electricity )
Insurance
Toll and Mileage

15 753.30

Year 2
( 2% )

Year 3
( 4% )
-

20 000
2 880 000
2 915 753.30

20 610
3 000
1 560

65
50
70

2 320 002

2 937 600
2 937 600

21 022.20
3 060
1 591.20

66.30
51
71.40

2 366 402

3 055 104
3 055 104

21 863.10
3182.40
1 654.80

69
53
74.30

2 461 058.10

45 342
72 000
15 360
10 800
9 600

46 248.80
73 440
15 677.20
11 016
9 792

48
76
16
11
10

098.80
377.60
293.90
456.60
183.70

Others Operation Expenses :

Maintenance
License
Road tax
Overhead expenses
Administration Expenditure :
Salary for General Manager
Salary for Financial Manager
Loan Repayment :
Principle
Interest
Capital Expenditure :
Machinery and Equipment
Furniture and Fittings
Motor Vehicle ( Van )
Signboard
Laptop ( Marketing )
Deposits
Total Cash Outflow
Cash Surplus / ( Deficit )
Beginning Cash Balance
Ending Cash Balance

250
130
90
158

23 358
23 358

4 000
1 000

2 400
3 000
22 000
3 000
900
1 870
2 581 225

255
132.60
91.80
161.20

23 825.20
23 825.20

4 080
1 020

2 601 829.10

334 528.30
0
334 528.30

335770.90
334 528.30
670 299.20

265.20
137.90
95.50
167.60

24 778.20
24 778.20

4 243.20
1 060.80

270 5891.90
349 212.10
670 299.20
1 019 511.30

PRO FORMA INCOME STATEMENT

(3 CONSECUTIVE YEARS)

Year 1 ( RM )

Year 2 ( RM )

Year 3 (RM )

SALES
COST OF GOOD SOLD (COGS)
Opening stock for finished goods
Add : Cost of goods manufactured

2 880 000

0
2 396 792

2 937 600

2 449 510.20

3 055 104

2 503 881.30

Goods available for sale

2 396 792

2 449 510.20

2 503 881.30

Less : Closing stock for finished goods

( 31/12 )

GROSS PROFIT

Less : Expenditure
Marketing expenditure
Administration expenditure
Other expenditure
Interest on Loan
Depreciation for Fixed assets

Total Expenditure
Net profit Before Tax
Tax
Net Profit After Tax
Accumulated Net Profit

483 208

25 170
43 968
185
1 000
1 380

71 703
554 911
0
554 911
554 911

488 089.80

25 673.40
44 847.40
188.70
800
2 760

74 269.50
562 359.30
0
562 359.30
562 359.30

551 222.70

26 700 3
46 641.30
196.30
600
4 140

78 277.90
629 500.60
0
629 500.60
629 500.60

PRO FORMA BALANCE SHEET

(3 CONSECUTIVE YEARS)

Fixed Assets (Book Value)

Year 1

Year 2

Year 3

Motor Vehicles (Van)

17 600

13 200

8 800

Furniture and Fittings

2 400

1 800

1 200

Machinery (Sewing Machine)

1 920

1 440

960

720

540

360

2 400

1 800

1 200

Current Assets

334 528.30

677 654.60

1 032 522.20

85 720

87 434.40

90 931.80

590 664.30

776 513.60

1 122 963.10

15 753.30

15 753.30

15 753.30

554 911

562 359.30

629 500.60

Laptop
Signboard

Cash
Account Receivable

Owners Equity
Capital
Accumulated profit
Current Liabilities

Account payable

182 401

465 709.20

Long Term Liabilities

Term Loan
TOTAL EQUITY AND LIABILITIES

20 000

16 000

12 000

590 664.30

776 513.60

1 122 963.10

FINANCIAL ANALYSIS (CURRENT RATIO NET

PROFIT MARGIN ONLY) FOR 3
CONSECUTIVE YEARS

CURRENT

YEAR 1
RM 420 248.30

YEAR 2
RM 757 733.60

YEAR 3
RM 110 443.10

ASSET
CURRENT

RM 0

RM 182 401

RM 182.401

LIABILITIES
CURRENT

4.51 Times

5.58 Times

RATIO
ANALYSIS

The business has the ability to generate cash to

meet the short-term obligations.

Current ratio for three consecutive year

CONCLUSION

In general conclusion, Eleglow Enterprise will meet its goals by following

the Business Plan.

Our target market is mainly focus on women in various age. With the
start up capital total up RM 15753.30 Eleglow Enterprise will grow into a
larger company.

By following the plan, Eleglow Enterprise will grow up to 4% of sales in

the first 3 years after its initial launch.