3.

1 COVER PAGE

BUSINESS PLAN

FLOURISH BOUTIQUE

A RETAIL BUSINESS

NO . 5, JALAN 4/83A, MID VALLEY, KERINCHI, OFF JALAN PANTAI BAHARU, 59200, KUALA
LUMPUR MALAYSIA

+60 3-7733 7912 (PHONE NO) & +60 3-7733 7913 (FAX NO)

FLOURISHBOUTIQUE.GMAIL.COM (EMAIL) & WWW.FLOURISHBOUTIQUE.COM

(WEBSITE)

NAME STUDENT ID PROGRAMME

NUR FATIN FARAHAIN BINTI ROSLAN I14100125 BBA MARKETING

NUR AFIQAH BINTI NUR HAZLAN I14100169 BBA ENTREPRENEUR

ANIDA BINTI AHMAD I14100056 BBA ENTREPRENEUR

NOOR SYAHIRAH BINTI MOHAMAD TAZARI I14100043 BBA ENTREPRENEUR

DATE OF SUBMISSION 9 DECEMBER 2015

TABLE OF CONTENT

1
Cover page 1
3.1.1 Title of Business Plan
3.1.2 Name of the business and business address
3.3.3 Name of group members
3.1.4 Date of submission
3.2 Table of contents
3.3 Executive Summary
3.3.1 In this section, please write up the idea of your business,
containing essential and motivating the reader the purposed of the
business plan. Please highlight the important components of the plan
such as the product or service being offered, market potential, project
management, project cost and expected returns.

3.4 Main body of the business plan

The main body of the business plan contains extensive information and
forms the core of the completed plan. This section is composed mainly
of the following sections:
3.4.1 Introduction
3.4.1.1 Name of the company
3.4.1.2 Date of Business commencement
3.4.1.3 Nature of Business
3.4.1.3 Industry Profile
3.4.1.5 Factors of selecting the proposed business
3.4.1.6 Future prospects of the business
3.4.2 Purpose of the business plan to be written
This section must be written and stated in a clear, concise and coherent
manner.
3.4.3 Company background
3.4.3.1 Name of company
3.4.3.2 Business address
3.4.3.3 Correspondence address (email/website)
3.4.3.4 Telephone number
3.4.3.5 Main activity or activities of the company
3.4.3.6 Date of registration

2
 3.4.3.7 Registration number
3.4.3.8 Name of Bank
3.4.3.9 Bank Account Number
3.4.4 Owner/ Partners background Q
3.4.4.1 Name of owner/partners
3.4.4.2 Identify card number
3.4.4.3 Permanent address
3.4.4.4 Correspondence address(email/website)
3.4.4.5 Telephone number
3.4.4.6 Date of Birth
3.4.4.7 Age/Marital status
3.4.4.8 Academic Qualifications
3.4.4.9 Skills
3.4.4.10 Experience
3.4.4.11 Present occupation
3.4.4.12 Previous business experience
3.4.5 Location of business
3.4.5.1 Physical information
3.4.5.2 Building type, condition, structure, size, cost
3.4.5.3 Basic amenities(water, electricity, telephone lines,
internet)
3.4.6 Administrative Plan
3.4.6.1 Introduction to organization- Mission/Objectives
2.4.6.2 Organization Chart
3.4.6.3 Manpower Planning
3.4.6.4 Company Budget
3.4.7 Marketing Plan
3.4.7.1 Description of how your marketing plan would be i.e.
pamphlets, radio, TV, newspaper, new media, and others.
3.4.7.2 Target group, segmentation including age, gender,
household income, market size, market share, sales forecast and
others.
3.4.7.3 Marketing Budget
3.4.8 Operations Plan
3.4.8.1 Process flow chart
3.4.8.2 Machine, equipment and material requirements

3
 3.4.8.3 Operations budget
3.4.8.9 Financial Plan
3.4.9.1 Source of Finance Schedule
3.4.9.2 Performa Profit and Loss
3.4.10 Conclusion
3.5 Appendices
3.5.1 Suppliers quotation
3.5.2 Agreement letter
3.5.3 Letter of reference
3.5.4 Reference

3.3 EXECUTIVE SUMMARY

Flourish is a contemporary womens apparel and accessories boutique that will open in
Mid Valley, Kuala Lumpur. It is Commercial land at Jalan Pantai Baharu next to the main road
and UDA business center, opposite KL ECO Park and Mid Valley City. And it is also 1 min to
Kerinchi Putra LRT station, Kolej Bedford, school and opposite Mid Valley Mega mall. It is
strategic location and convenient location to open up a business. The idea for the business was
initially generated in order to fill a void in the current market. Flourish will provide the young,
female consumer with a combination of products and services that is unlike anything offered
thus far. The goal of the business is to deliver a unique yet stylish collection of apparel and
accessories that changes frequently, personal service, a friendly and relaxed atmosphere, and

4
prices that wont break the bank and we also sell flower too. We not only sell various types of
clothing, but we also sell a wide - range of flowers next to our boutique. We will also build green
homes next door from our boutique so we were able to maintain the freshness of the flowers
before to sell it. If women go to see the clothes while their partner can also go to see the flowers
in the shop next to our boutique and buying for their partners to make a surprise.

The name Flourish was chosen because it implies a sense of vitality and expression
and these are two ideas that could easily be used to describe the business target customer.
The Flourish customer enjoys fashion and seeks apparel and accessories that are trendy, yet
still allow her to stand out a little from the crowd. We will also decorates our interior design
boutiques also be based on the environment and are able to give peace to the customer She
seeks an informal, unstuffy shopping environment but expects attentive associates. All of these
things are what Flourish will provide.

Although still young, the Flourish owner and manager already has substantial retail
experience and will apply her work and educational knowledge to effectively run the business as
a sole proprietorship. The stores location in area Mid Valley will help it to capitalize on the
growing crowded and famous area and heavy area foot traffic.

Using market based sales forecasting, Flourish is expected to break even within the
first year of operations. Net Income from Year 1 is estimated at around RM 100,000.90 MYR
and should grow to over RM 153,993.90 MYR by the end of Year 3. Although the retail industry
has been in a decline due to the economic recession, consumer confidence has recently begun
to rise. This fact, along with the assertion that the store will fill a gap in the current market
ensures that Flourish will live up to its name and continue to exhibit growth well beyond the third
year.

3.2 MAIN BODY OF THE BUSINESS PLAN

3.4.1 INTRODUCTION

NAME OF COMPANY : FLOURISH BOUTIQUE SDN BHD

DATE OF BUSINESS COMMENCEMENT : 25 NOVEMBER 2015

NATURE OF BUSINESS :
Flourish will be organized as a SDN BHD due to the ease of organization and
simplicity of structure. The business will be primarily owned and managed by four people which

5
is Nur Afiqah binti Nor Hazlan, Fatin Farahain binti Roslan, Anida binti Ahmad and Noor
Shahirah binti Mohamad Tazari that is why this business will be organized as a SDN BHD.

INDUSTRY PROFILE :

Flourish will operate in the retail industry, and more specifically in the Women's
Apparel Industry, which represents a business worth well over $40 billion nationwide. The
demand for women's apparel is fairly volatile and relies heavily on discretionary income levels,
seasonal changes, and fashion trends. Based on 2008 figures, the average women's apparel
retailer achieved operating profits of 4.2% of revenue, before tax; however, this number varies
based on the three industry forces listed above. Because this Flourish Boutique is a retail
business in clothes and flowers industry.

The barriers to entry in the Apparel Retail Industry are relatively low; setting up a
single, independent retail establishment does not require much capital. The industry is
moderately concentrated, and there is substantial room for small start - ups. Consumer
switching costs are low. People are generally more loyal to a certain designer rather than to a
certain store. The threat of substitutes is also low; the only other options in addition to retail
purchases are for consumers to buy clothes directly from the manufacturer or to make them
themselves.

FACTORS OF SELECTNG THE PROPOSED BUSINESS :

Factors we selecting this proposed business is because Flourish will provide all the
necessary products and services to outfit the young, Kuala Lumpur female in styles that make
her feel confident and unique. And also a floral shop that provides every floral product and
service needed by customers, including delivery and wire service. This will be achieved first
through the setup of brick-and-mortar establishment and later through the addition of an online
store.

The opening of Flourish will introduce option five, providing the customer with the best
of the best. The key elements to success will include: a unique yet stylish collection of apparel
and accessories that changes frequently, personal service, a friendly and relaxed atmosphere,

6
and prices that wont break the bank. And we also providing customer with the fresh flowers that
still fresh.

FUTURE PROSPECTS OF THE BUSINESS :

Future prospects of this business is our products / services stock apparel and
accessories for women that cannot easily be found elsewhere. Our flowers stock also cannot
easily be found elsewhere and from abroad and our flowers still fresh and we will always keep
its freshness so that it would stay longer. For our products / services we will deliver exceptional
customer service at all times and be not only a source for fashion purchases, but be a source
for fashion knowledge as well.

Our future prospects for this business is we promised that for our performance we will
break within the first year of operations and experience growth of 15% after the first year, and
5% growth after years 2 and 3. For our performances we will achieve profit margins of 15% by
the end of year 5.

3.4.2 PURPOSE OF THE BUSINESS PLAN TO BE WRITTEN

The purpose of this business plan is for a financial institution where we are about to
ask for a RM 50,000 business loan. We really need this money because we want to ensure the
success of our business.

3.4.3 COMPANY BACKGROUND

NAME OF COMPANY : FLOURISH BOUTIQUE SDN BHD

BUSINESS ADDRESS : NO . 5, JALAN 4/83A, MID VALLEY, KERINCHI, OFF

JALAN PANTAI BAHARU, 59200, KUALA LUMPUR MALAYSIA

7
 FLOURISHBOUTIQUE.GMAIL.COM (EMAIL)

WWW.FLOURISHBOUTIQUE.COM (WEBSITE)

TELEPHONE NUMBER : +60 3-7733 7912 (PHONE NO)

MAIN ACTIVITY OR ACTIVITIES OF THE COMPANY :

We sell clothing womens apparel and many kind of flowers.

DATE OF REGISTRATION : 15 NOVEMBER 2015

REGISTRATION NUMBER : IM0456789-N

NAME OF BANK : RHB BANK

BANK ACCOUNT NUMBER : 08247 - 41 - 000000 - 126

3.4.4 OWNER / PARTNERS BACKGROUND

1. OWNER/PARTNERS

NUR FATIN FARAHAIN BINTI ROSLAN

910814-08-5860

NO 286 , LORONG 13 TAMAN DAMAI 34700 SIMPANG TAIPING PERAK

PRINCESSFARAH_ROSLAN@HOTMAIL.COM

012-5832631

8
14 AUGUST 1991

24 SINGLE

BBA MARKETING

COMPUTER

SALES EXECUTIVE FOR PEACE COLLECTION SDN BHD & SALESGIRL FOR ZAMITA
ENTERPRISES

KUISAS STUDENT

ONLINE BUSINESS

2.OWNER/PARTNERS

NUR AFIQAH BINTI NUR HAZLAN

930826-08-5778

NO 21 , JALAN SERI PERMAI 5 TAMAN SERI PERMAI 33700 PADANG RENGAS PERAK

FIKAHHAZLAN@GMAIL.COM

0175033720

26 AUGUST 1993

22 SINGLE

BBA ENTREPRENEUR

COMPUTER

TEACHERS ASSISTANT FOR TASKA PERMATA & SALESGIRL & FINISAR OPERATOR

KUISAS STUDENT

3.OWNER/PARTNERS

9
ANIDA BINTI AHMAD

940728-02-5500

F11 BATU 18 08800 GUAR CHEMPEDAK GURUN KEDAH

ANIDAAHMAD94@GMAIL.COM

011-12506519

28 JULY 1994

21 SINGLE

BBA ENTERPRENEUR

COMPUTER

KUISAS STUDENT

BAKERY BUSINESS

4.OWNER/PARTNERS

NOOR SYAHIRAH BINTI MOHAMAD TAZARI

940417-08-6218

30A KAMPUNG PADANG LALANG 34500 BATU KURAU TAIPING PERAK

NOORSYAHIEYRAH94@YAHOO.COM

019-4314975

17 APRIL 1994

21 SINGLE

10
BBA ENTERPRENEUR

COMPUTER

CLERK & CASHIER

KUISAS STUDENT

3.4.5 Location of business

Flourish will be located in Kuala Lumpur downtown, specifically in Mid Valley Mega mall. This
decision has been made based on economic factors of the area and on the notion that the
downtown community is well aligned with the image that Flourish would like to portray. Many
retail establishments in the area are local, not chain locations, and offer unique products and
services.

3.4.5.1 Physical Information

Mid Valley Mega Mall in downtown of Kuala Lumpur at Jalan Lingkaran Syed Putra consists
of over forty businesses grouped around a central mall with benches, fountains, and a stage.
Mid Valley Mega mall and the leading retailer in Kuala Lumpur, Malaysia with over 4.5 million
square feet of total floor area filled with the latest fashion trends, 30 offices, 2 hotels, home
convenience wares, hottest sales and promotions and the greatest shop experience.

3.4.5.2 Building type, condition structure, size cost.

11
 2,232 square feet with existing

back office area, restrooms (2), and storage

12
13
 Photo Examples of Inspiration for Store Design

and Unique Display Options

3.4.5.3. Basic amenities (water, telephone, electricity, internet)

The cost of electricity, water and telephone are approximately 20% of its sales. As far from
what we know is that the cost is not always fixed every month.

14
3.4.6 Administrative plan

3.4.6.1 Introduction to organization:

The purpose of this business plan is to fill a noticeable void in the Kuala Lumpur womens
apparel market. The proposed boutique, Flourish, will combine elements of existing stores in
order to meet the markets needs in the best way possible. Up until this point, the female Kuala
Lumpur shopper has been forced to undergo a constant evaluation of benefits and sacrifices.
So, the opening of Flourish will introduce option five, providing the customer with the best of the
best. The key elements to success will include: a unique yet stylish collection of apparel and
accessories that changes frequently, personal service, a friendly and relaxed atmosphere, and
prices that is affordable.

Flourish will be organized as an Sdn Bhd business due to the ease of organization and
simplicity of structure. The business will be primarily owned and managed by Nur Afiqah binti
Nor Hazlan, Nur Fatin Farahain binti Roslan, Anida binti Ahmad and Noor Shahirah binti
Mohamad Tazari.

Mission:

Flourish will be a leader in the Kuala Lumpur retail sector by offering customers unique and
stylish womens apparel and accessories at affordable prices. The Store will provide a relaxed
and easy-going atmosphere in which to shop, and its patrons will enjoy top-notch customer
service and benefits.

15
3.4.6.2 Organization chart

Nur Fatin Farahain

Binti Roslan
General manager

Nur Afiqah Binti Nor Anida Binti Ahmad Noor Shahirah Binti
Hazlan Mohamad Tazari
Finance manager
Administration Manager Marketing Manager

16
3.4.6.3 Manpower planning

Staff Salary (EPF 13%) (SOCSO 2%) Total monthly

remuneration
1.Owner(four RM80/day RM312.00/monthl RM48/monthly RM2400.00x4=
person) y RM9,650.00+1248+192
=
RM11,090.00
2.Assistant RM35/day RM136.50/monthl RM21/monthly RM1050.00+ 157.50=
y RM1207.50
3.Total RM12,297.50/
monthly

Figure 1: Manpower planning

3.4.6.4 Company budget

Startup expenses for Flourish have been estimated at RM39, 993.00. Startup assets
including initial cash required, startup inventory, and longterm assets have been estimated at
RM41, 500.00. This brings the total funding required to RM81, 493.00. A portion of the planned
investment will be covered through a 10year, RM50, 000 Small Business Association Loan,
with interest at 8%. Total starting capital at the beginning of Year 1 will be RM8, 500.00. Detailed
charts of startup requirements and funding may be found in figure 2.

17
 FLOURISH BOUTIQUE
Startup Funding
Startup Funding

Startup Expenses to Fund RM39,993.00

Startup Assets to fund RM41,500.00
Total Funding Required RM81493.00
Asset
Non-Cash Asset from Startup RM41,000.00
Cash Requirement from Startup RM500.00
Additional Cash Raised RM0.00
Cash Balance on Starting Date RM500
Total assets RM41,500.00
Liabilities and Capital
Liabilities
Current Borrowing RM0.00
Long-Term liabilities RM50,000.00
Other Current liabilities RM0.00
Total Liabilities RM50,000.00
Capital
Planned Investment
Owner injection RM31,493.00
Additional investment Required RM0.00
Total planned investment RM31,493.00
Loss a startup (Startup Expenses) (RM39,993.00)
Total Capital (RM8,500.00)
Total Capital and Liabilities RM41,500.00
Total funding RM81,493.00

Figure 2: Company budget

Flourish Boutique
Startup requirement
Startup Expenses

Advertising and promotion RM1,800.00

Building Rental Deposit RM2,790.00
Commission RM0.00
Consulting Services RM6,500.00
Dues and Subscriptions RM300.00
Leasehold Improvement RM20,000.00
Licenses and Permits RM100.00
Miscellaneous RM1000.00

18
 Office and Store Supplies RM800.00
Payroll Taxes RM78.00
Prepaid Insurance RM1000.00
Rent for Pd. Of Improvements RM2,790.00
Security System RM250.00
Signage RM500.00
Travel RM1000.00
Utilities Deposit RM525.00
Wages RM560.00
Total Startup Expenses RM39,993.00
Startup Assets
Cash Required RM500.00
Startup Inventory RM28,000.00
Other Current Assets RM0.00
Long-Term Assets
Furniture And Fixtures RM6,000.00
Office Equipment RM1,500.00
POS Equipment RM5,500.00
Total LT assets RM13,000.00
Total Assets 41,500.00
Total Requirements RM81,493.00
Figure 2: Company Budget

19
3.4.7 MARKETING PLAN

PRODUCTS/SERVICES

Flourish will sell ready to wear casual, contemporary apparel and accessories for women. Many
of the brands to be sold will be selected at apparel markets, but some possibilities
include the following:

Kensie

Dogeared

James Jeans

Haven

Pepper

Scout by Bungalow

MM Couture

Various fresh flower

An effort will be made to showcase local talent as well, especially in the area of jewellery
and accessories.

In addition to great products, Flourish will also offer a variety of services. The Flourish
website will launch in accordance with the stores grand opening and will include important store
information and fashion related content. There will be a Style Blog sections, which will be written
by the store owner and will feature updates on the latest trends and how to wear them. The
website will also informs visitors on the latest happenings and deal at Flourish. Later on, a
section for online shopping will be added. This addition will be planned as soon as Flourish has
established a substantial market presences and the financial and environmental condition are
right.

The next service that Flourish will provide will take place with its employees. The sales
associates will actually be thought more as Stylist who provide personal shopping services.
These services will be more heavily concentrated in Flourishs older target market since

20
younger females tend to shop in larger groups and rely more heavily on the opinions of friends.
However, this fashion knowledge can still be a valuable tool for suggestive selling.

In regards to the product/service mix, Flourish services (website news, Stylists. Etc.) Will
fulfil the value of Educating customers about recent fashion trends and how to properly style
their purchase. Most importantly, both products and services will always be tailored to fulfil the
value of Meeting customer needs and wants at all times.

PLACE

Products will be sourced from retail wholesalers at apparel markets in the United
Kingdom. In order to provide a unique product assortment, apparel markets will be chosen that
are not standards for local boutiques. Many local boutiques source from Indonesia and Thailand
market for proximity reason, so Flourish apparel and accessories will be sources from placed
like United Kingdom.

Flourish will be located in Mid Valley in a ground level space that encompasses 2.323
square feet. The products will be neatly merchandised, allowing for plenty of room to move
freely about the store.

PRICE

In 2008, the average gross margin for womens apparel stores was 44.3%. Based on the
fact that Flourish is somewhat of a specialty retailer with unique products and services, the
gross margin goal will be set at 50%. Therefore, products in the store will retail for double the
wholesale price. With the exception of just a few items (i.e. premium denim and special
occasion dresses), price points at Flourish will remain below RM100.

PROMOTION/ ADVERTISING

The following section will describe promotional and advertising methods that will be used
to educate the target market about Flourish. Although many of the selected methods are free, a
list of proposed costs is included at the end of the section.

The initial goal of Flourish promotions will simply be to create awareness. Therefore, the
business will be heavily reliant on word-of-mouth for the first year or so. Part of the of Flourish
associates will be to tell all of their friends and family about the store. Another major asset that

21
will be used for promotion is the use of social networking sites like Facebook and Twitter. These
free websites are all used frequently by members of the Flourish target market and are great
ways to keep customers updates on new products, store events.

The store websites will also help educate potential customers about Flourish. At first, the
website will be purely informational, including things like location, directions, hours, brands and
fashion-related content like the StyleBlog. An e-commerce portion of the site will be added once
it is determined that the Flourish name has been well-established in the market, probably soon
after the first year of operation. Once this is set up, search engine optimization will be used to
help market the online store.

Public relations will also pay a pivotal role in the marketing mix since it is both free and
highly credible. The owner will send press releases about Flourishs grand opening to area
newspapers and magazines like the Knoxville News Sentinel, the Daily Beacon, the MetroPulse,
and Skirt!. This will be done in the hopes that the newspapers will publish articles about the
introduction of Flourish in their print or online editions. Another free and easy way to promote
the Flourish name will be through store listings on Knoxville tourism and informational websites.

Members of the Flourish target market are highly social and take fashion seriously.
Therefore, special in-store events will be held that merge these two aspects, while at the same
time generating positive word of mouth and producing sales. Ideas for such events include
Sample Sales, Runway Shows, and Fashion Previews. Sample Sales will more than likely be
held with local designers and will allow them to showcase their wares at slightly discounted
prices. Runway Shows would allow customers to get a first glimpse at the next seasons looks,
modelled by Flourish associates. Finally, Fashion Preview events would reserved as a benefit
for Flourishs most loyal customers. During these preview, pictures of the items ordered at
market would be on display before the actual garments arrive. Loyal customers would have the
first pick, and could reserve their favourite styles on the spot. These events have the potential to
generate a great deal of awareness, and yet they would be relatively inexpensive to hold. Costs
would include event promotions and minor extras like refreshments.

Finally, unique and attractive store displays will be an essential promotional tool for
attracting passer-by. The windows will be routed out frequently as new shipments arrive, and
they will display the merchandise in the most appealing way possible. The prior retail
experience of the owner has given her the expertise to create such displays herself. Minor costs
will be incurred through the purchase of display accessories.

22
 Annual Marketing Cost

Newspaper and magazine ads RM3,000.00

In-store events RM1,000.00
Display accessories RM250.00

3.4.8 Operation Plan

Flourish will operate in the retail industry, and more specifically in the Women's Apparel
Industry, which represents a business worth well over RM40 billion nationwide. The demand for
women's apparel is fairly volatile and relies heavily on discretionary income levels, seasonal
changes, and fashion trends.

The barriers to entry in the Apparel Retail Industry are relatively low; setting up a single,
independent retail establishment does not require much capital. The industry is moderately
concentrated and there is substantial room for small start-ups. Consumer switching costs are
low. People are generally more loyal to a certain designer rather than to a certain store. The
threat of substitutes is also low; the only other options in addition to retail purchases are for
consumers to buy clothes directly from the manufacturer or to make them themselves.

Flourish will sell ready-towear casual, contemporary apparel and accessories for women.
An effort will be made to showcase local talent as well, especially in the area of jewelry and
accessories. In addition to great products, Flourish will also offer a variety of services. The
Flourish website will launch in accordance with the stores grand opening and will include
important store information and fashionrelated content. There will be a Style Blog section,
which will be written by the store owner and will feature updates on the latest trends and how to
wear them of course, highlighting Flourish's merchandise. The website will also inform visitors
on the latest happenings and deals at Flourish. Later on, a section for online shopping will be
added. This addition will be planned as soon as Flourish has established a substantial market
presence and the financial and environmental conditions are right.

23
 The next service that Flourish will provide will take place with its employees. The sales
associates will actually be thought more as Stylists who provide personal shopping services.
These services will be more heavily concentrated in Flourish's older target market since younger
females tend to shop in larger groups and rely more heavily on the opinions of friends. However,
this fashion knowledge can still be a valuable tool for suggestive selling.

In regards to the product/service mix, Flourish services in website news will fulfill the value of
Educating customers about recent fashion trends and how to properly style their purchases.
Most importantly, both products and services will always be tailored to fulfill the value of
Meeting customer needs and wants at all times to see the VALUES STATEMENT.

Business Day Hour

Monday- Sunday 10.00 A.M. - 1 0.00 P.M

Figure 3: Business Hour

24
3.4.8.1 Process flow chart

INPUTS
Raw material, manpower, Equiptment, Place, Space and layout,
Capital, Technology.

PROCESS
Process flow, Capacity, Material requirement plannning, Process
control

OUTPUTS
Produce design, Quality specification, CUstomer
requirements, Quantity, Cost and delivery time Target.

CUSTOMERS
Marketing needs, Customer needs, wants, Value,
Preference and budget

Figure 4: Production plan component

25
Carriage inward stock after order made in advance

Customer walk-in to our shop buying the items

Process of checking the iitem to ensure the item in the good

condition and then packing the items by the sale assistance

Payment by the customer

Figure 5: Process of flow chart

26
3.4.8.2 Machine equipment & material requirement

TYPE QUANTITY PRICE/UNIT(RM) TOTAL PRICE

Dress Form 20 150 3000
Clothes Stock 100 40 400
Accessories 100 20 200
Iron & Bod iron 4 120 480
Desk& Chair 6 100 600
Wardrobe 8 150 1200
Boutique equipment 5 250 1250
Money Machine 1 300 300
Telephone 1 120 120
Shelf 5 140 700
Computer 1 2000 2000
Vehicle (van) 1 50,000 50,000
Various fresh flower 50 25 1250

Total RM61,500.00

Figure 6: Machine equipment & Material Requirement

3.4.8.3 Operation Budget

Month Unit Sale(RM)

1 19 26,600

27
 2 18 25,200
3 17 23,800
4 14 19,600
5 23 32,200
6 18 25,200
7 13 18,200
8 20 28,000
9 18 25,200
10 22 30,800
11 28 39,200
12 30 42,000
Total 240 336,000

Figure 6: Production Operation

TYPES MONTHS(RM) YEARS(RM)

Payment Rate 50.00 600.00
Rent 500.00 6,000.00
Manager Salary 11,090.00 133,080.00
Assistant Salary 1207.50 14,490.00
Equipment Service 50.00 600.00
Business Registration - 70.00
Business License - 130.00
TOTAL RM154,970.00

Figure 7: Operation Budget

28
3.4.9 FINANCIAL PLAN

Startup funding

Flourishs boutique

Startup requirements

Startup expenses RM RM

Advertising and promotions 1,800.00

Building rental deposit 2,790.00
Consulting services 6,500.00
Dues and subscriptions 300.00
Leasehold improvements 20,000.0
0
Licenses and permit 100.00
miscellaneous 1,000.00
Office and store supplies 800.00
Payroll taxes 78.00
Prepaid insurance 1,000.00
Rent for pd. Of improvements 2,790.00
Security system 250.00
signage 500.00
travel 1,000.00
Utilities deposit 525.00
wages 560.00
Total startup expenses 39,993.0
0
Startup assets

Cash required 500.00

Startup inventory 28,000.0
0
Other current assets 0.00
Long-term assets :
Furniture and fixtures 6,000.00
Office and equipment 1,500.00
POS equipment 5,500.00
Total LT assets 13,000.0
0

29
 Total assets 41,500.0
0
Total requirement 81,493.0
0

Flourishs boutique

Startup funding

Startup funding RM RM

Startup expenses to fund 39,993.00

Startup assets to fund 41,500.00
Total funding required 81,493.00
Assets

Non- cash assets from startup 41,000.00

Cash requirement from startup 500.00
Additional cash raised 0.00
Cash balance on starting date 500.00
Total assets 41,500.00 41,500.00
Liabilities and capital

Liabilities:
Current borrowing 0.00
Long-term liabilities 50,000.00
Accounts payable 0.00
Other current liabilities 0.00
Total liabilities 50,000.00
Capital

Planned investment:
Owner injection 31,493.00
Investor 0.00
other 0.00
Additional investment required 0.00
Total planned investment 31,493.00
Loss at startup (startup expenses) (39,993.00
)
Total capital (8,500.00)
Total capital and liabilities 41,500.00
Total funding 81,493.00

30
STARTUP FUNDING

Startup expenses for Flourish have been estimated at RM39,993.00. Startup assets
include initial cash required, startup inventory, and longterm assets have been estimated at
RM41,500.00. This brings the total funding required to RM81,493.00. A portion of the planned
investment will be covered through a 10year, RM50,000 Small Business Association Loan, with
interest at 8%. Total starting capital at the beginning of Year 1 will be RM8,500.00.

BALANCE SHEET

Flourish Boutique
Pro forma balance sheet

Year 1(RM) Year 2 (RM) Year 3(RM)

Assets
Current assets:
cash 2,404.82 23,984.00 49,253.00
Accounts receivable 0.00 0.00 0.00
inventory 30,000.00 32,000.00 33,000.00
Prepaid expenses 1,000.00 1,000.00 1,000.00
Total current assets 33,404.82 56,984.78 83,253.72
Fixed assets:
Furniture and fixture 6,000.00 6,000.00 6,000.00
equipment 7,000.00 7,000.00 7,000.00
Accumulated depreciation 1,100.00 3,300.00 5,500.00
Total fixed assets 11,900.00 9,700.00 7,500.00
Total assets 45,304.82 66,684.78 90,753.72
liabilities
Current liabilities:
Accounts payable 0.00 0.00 0.00
Short-term loan payable 7,280.00 7,280.00 7,280.00
Total current liabilities 7,280.00 7,280.00 7,280.00

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Long-term liabilities:
Long-term notes payable 42,720.00 35,440.00 28,160.00
Mortgage payable 0.00 0.00 0.00
Total long-term liabilities 42,720.00 35,440.00 28,160.00
Capital:
Paid-in capital 31,493.00 31.493.00 31,493.00
Retained earnings (36,188.18) (7,528.22) 23,820.72
Total capital (54,695.18) 23,964.78 55.313.72
Total capital and liabilities 45.304.82 66,684.78 90,753.72

BALANCE SHEET

Over the first three years, Flourishs total assets increase from RM45,305.00 to
RM90,754.00 because of increases in inventory levels and cash balances. Over that same
period, total liabilities decrease from RM42,720.00 to $28,160.00 because of a deduction in
notes payable.

CASH FLOWS

Flourishs boutique

Pro forma cash flows

32
Year 1 (RM) Year 2 (RM) Year 3 (RM)

33
 Beginning cash balance (8,500.00) 2,404.82 23,984.78
Cash inflows:
Accts, rec, collections 0.00 0.00 0.00
Loan proceeds 0.00 0.00 0.00
Sales and receipts 360,00.00 414,000.00 434,700.00
Prepaid expenses 0.00 0.00 0.00
Total cash inflows 360,000.00 414,000.00 434,700.00
Cash outflows:
Cost of goods sold 180,000.00 207,000.00 217,350.00
Operating expenses 137,310.00 140,810.00 143,780.00
Interest expenses 3,877.00 3,595.00 3,288.00
Taxes 6,908.00 12,715.04 14,513.06
Fixtures and equipment 1,100.00 3,300.00 5,500.00
Owners draw 20,000.00 25,000.00 25,000.00
Total cash outflows 349,095.18 392,420.00 409,431.06
Net cash flow 10,904.82 21,579.97 25,268.94
Ending cash balance 2,404.82 23,984.78 49,253.72

CASH FLOWS

Over the course of the first business year, cash flows will increase from RM8,500 from startup
costs to an ending cash balance of around RM,400.00. While this amount is certainly not a large
sum of cash to have on hand, the ending cash balance for Year 3 is expected to grow to over
RM49,000.00.

3.4.10 CONCLUSION

The goal of the business is to deliver a unique yet stylish collection of apparel and
accessories that changes frequently, personal service, a friendly and relaxed atmosphere, and
prices that wont break the bank. Accessories that changes frequently, personal service, a
friendly and relaxed atmosphere, and prices that wont break the bank. The Flourish customer
enjoys fashion and seeks apparel and accessories that are trendy, yet still allow her to stand out
a little from the crowd. Although the retail industry has been in a decline due to the economic
recession, consumer confidence has recently begun to rise. This fact, along with the assertion
that the store will fill a gap in the current market ensures that Flourish will live up to its name and

34
continue to exhibit growth well beyond the third year. Flourish will provide all the necessary
products and services to outfit the young, Kuala Lumpur female in styles that make her feel
confident and unique and flourish boutique also provide fresh flowers from abroad. This will be
achieved first through the setup of brick and mortar establishment and later through the addition
of an online store.

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APPENDIX

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