NEXT IN

Faculty : Faculty of Administrative Science & Policy Studies

Program : Bachelor of Administrative Science (Honours)
Program Code : AM228
Course : Principles of Entrepreneurship
Course Code : ENT530
Semester : 20182 – Sesi 2 2017/2018
Group Name : SAMA2A
Group Members : 1. Natasha Fitriyannie Binti Hilarius 2015480416
2. Florence Binti George 2014392879
3. Deidre Maryanne Mariusius 2015247114
4. Rohani Binti Janim 2014935623

Submitted to
Miss Jacqueline Koh Siew Len Binti Stephen

Submission Date
JUNE 2018
TABLE OF CONTENTS

CONTENTS PAGE NUMBER

1.0 Executive Summary
2.0 Business Plan Purpose
3.0 Company Background
4.0 Location of Business
5.0 Shareholder Background
6.0 Administration Plan
7.0 Marketing Plan
8.0 Operation Plan
9.0 Financial Plan
10.0 Appendices
1.0 EXECUTIVE SUMMARY
Next In is a multi-business that sells pre-loved clothes, home baked cookies and provide
car rental service located at Gaya street Kota Kinabalu. We can loosely be described as
a quick-service shop where customers can shop, eat cookies and at the same time in
case any of the customers might need a car we provide car rental services as well. We
are the first and only Malaysian that owns this unique idea type of business. You can
never find a very rare combination business like this anywhere except ours.

1.1 PRE- LOVED CLOTHES

Naisho and Style studio owned by two different businesses owner combined
together that sell pre-loved clothes and second hand clothes. Our pre-loved
clothes will offer a women’s clothing line that is exquisite and sophisticated, as
well as practical, wearable and affordable. Customers who wish to shop through
online can check our page on Facebook “NAISHO” and “Style Studio”.

1.2 COOKIES AND BISCUITS

RaC Cookies business provides a wide range of Cookies. For example, ‘Biskut
Semperit multi-flavored. In addition we provide ‘Makmur Kacang’, Milk Cerelac,
Tart Nenas, ‘Biskut Ulat Bulu’ and other cookies. The price set by RaC Cookies is
as low as RM 10/28pieces of all types of cookies. It also provides sell services
and sends to customers who wish tobook as a souvenir for certain occasions.
Additionally, it also allows visitors to enjoy our foodand beverages. Anyone who
wishes to order online also can check-out our page for more information.

1.3 CAR RENTAL SERVICES

Global Speed Management Services will offer car rental services in line with our
slogan “Cheap, Convenience and Savvy”, we are set to deliver our services at
your door steps. We are quite optimistic that our values, highly reliable and
comfortable fleet of cars and of course the quality of service offering will help us
drive our car rental business to enviable heights and also help us attract the
numbers of clients that will make the business highly profitable.
We are a company that will be dedicated to establishing good business
relationship with our clients giving them value for their money and reasons for
them to rent and lease our cars over and over again. Our client’s best interest will
always come first, and everything we do will be guided by our values and
professional ethics. We will ensure that we hold ourselves accountable to the
 highest standards by meeting our client’s needs precisely and completely. We will
cultivate a working environment that provides a human, sustainable approach to
earning a living and satisfaction for our clients.

2.0 PURPOSE

The main purpose of this business plan is to provide clearer information or information
regarding the business we want to venture. Additionally, with this business plan, it can
attract and convince many parties to cooperate and make financial investments to our
company.

2.1 First and foremost, this business plan is as guideline for day to day management
of the business in order to ensure that the operation of business would be more
effective.

2.2 The other reason of making this business plan is to control cost and expenses
that would be borne by the company within monthly of salary distribution,
equipment, transportations, as well as advertisements cost.

2.3 To fulfil the demand of the people who are seeking for convenience products and
services that gives various types of fashion style, cookie flavour as well as comfy
and affordable car rent price.
3.0 COMPANY BACKGROUND

Name of Company Next In

Nature of Business Multi business (clothes, food, car rental service)

Location of Business Gaya Street, lot 118, Kota Kinabalu

Date of Business
1st April 2018
Commencement

1. To promote local Multi-business

2. Higher demand car rental in Kota Kinabalu
area.
3. Preloved clothes have become the number
one choice for youngster and adults to shop
Factors in selecting the
because its much cheaper.
proposed business
4. Sabah is the most strategic place for
investment as it it one (1) of the famous
tourist spot and has higher potential in this
particular products and services in
accordance with customers preferences.

1. To develop and expand the business to be

better in providing convenience product and
Future prospects of the
services.
business
2. To be the most succesfull multi business
company.

Figure 1.1 Company Background

Figure 1.2 Company Logo

3.1 COMPANY DETAILS

Name of company Next In

118, Jalan Gaya, Pusat Bandar Kota Kinabalu,

Business Address
88000 Kota Kinabalu, Sabah
Correspondence 118, Jalan Gaya, Pusat Bandar Kota Kinabalu,
Address 88000 Kota Kinabalu, Sabah

Telephone Number 088-222111

Form of Business Multi Business

 Selling preloved clothes

Main activity  Car rental services
 Selling home baked cookies

Date of Commencement 1st April 2018

Date of Registration 1 January 2018

Registration Number 11678-W

Name of Bank CIMB BANK

Bank Account Number 160169011601

Figure 1.3 Company Details

3.2 BUSINESS LOCATION

Figure 1.4 Business Location

This business is located at Gaya Street, Lot 118, Kota Kinabalu Sabah. It has basic
amenities such as wifi, utilities and telephone line. The location is one of the
prominent areas in Kota Kinabalu and known as tourist attraction. The store is
approximately 500-700 square feet. This area will include five (5) to six (6) clothes
rack, two (2) large dressing room with built-in mirrors. The operating space will consist
of one (1) nos of microwave, counter and serving area which provides ambient display
cases, cold beverage fridge, coffee maker as well as eating area and a restroom. Next
to the entrance, a booth counter for car rental services shall be located.

The stores is located on high traffic commuter routes and close to shopping facilities
in order and strategically convenience to any customers to drop by while going to or
from work and during lunch hour. The business will operate from Monday to Sunday.
The business operation hours is from 9am to 9pm
3.3 SHAREHOLDERS’ BACKGROUND

Name Natasha Fitriyannie

IC Number 910415-12-5471

Address SIDMA bundusan

Email Address natasha@gmail.com

Phone Number 012-8328138

Date of Birth 15th April 1991

Age 27

Martial Status Single

Academic Qualification Bachelor Degree in Administrative Science

Course Attended Entrepreneurial talk and training administration.

 Excellent communication skills

Skills
 Good public relation
 7 years of experience with a strong
Experience environmental awareness, excellent writing skills,
and the ability to find innovative solutions.
Name Deidre Maryanne Mariusius

IC Number 891013125614

Address Papar

Email Address Deidre@gmail.com

Phone Number 010 9308202

Date of Birth 13th October 1989

Age 29

Martial Status Single

Academic Qualification Bachelor Degree in Administrative Science

Course Attended Entrepreneurial talk and training administration.

 Excellent communication skills

Skills
 Good public relation
 Strong background in marketing, business
Experience development, and project management.
Name Rohani Binti Janim

IC Number 800303-12-5886

Address Menggatal

Email Address Rachel_0303@yahoo.com

Phone Number 0146555022

Date of Birth 3rd March 1980

Age 38

Martial Status Married

Academic Qualification Bachelor Degree in Administrative Science

Course Attended Entrepreneurial talk and training administration.

 Excellent communication skills

Skills
 Good public relation
 Experienced at analyzing clients' financial needs
Experience and helping them achieve goals through
comprehensive financial management
Name Florence Binti George

IC Number 770210-12-5428

Address Kota Kinabalu

Email Address survivor10277@yahoo.com

Phone Number 0146695965

Date of Birth 10th February 1977

Age 41

Martial Status Single

Academic Qualification Bachelor Degree in Administrative Science

Course Attended Entrepreneurial talk and training administration.

 Excellent communication skills

Skills
 Good public relation
 Experienced with government regulations and
compliance issues for hazardous waste
Experience
incidents and emergency planning.
4.0 ADMINISTRATION PLAN

Administration is the most important thing when open up a business. It is to ensure

the business run smoothly. The performance, growth and survival of the business
depend on managerial skills and capabilities. The manager should have the
administration function such as planning, controlling, organizing, and leading the
company. The task of administration manager is to set the employee’s salaries,
protect the employee’s welfare compensation and fringe benefits, recruiting, provide
the furniture and fitting in the office to ensure the employee comfortable working
environment.

The administration task also including plan and set the objective or goals of the
business and ensure the company achieve the goals that have been set successfully.
The administration also has to arrange the organizational structure, do a working
schedule, and calculate all budgets relating to administration department. Besides, the
administration also responsible to ensure the partnership and the employees get the
acceptable salaries like stated in the agreement and take care about employee
welfare such as SOCSO, EPF, bonuses and leaves such as medical leaves,
emergency leaves, maternity leaves and annual leaves.

Thus, in Next_In we see administration function as a vital task where it compresses

all the elements to make sure the effectiveness in terms of performing organization
activities. Our company, Next_In which will focus in distribution and selling of clothing
lines and range of cookies. On top of that, we also provide car rental services. By
looking this as business opportunity, we chose to create this company that not only
focusing in domestic demand but also create new products that can give varieties of
choices to the customer.
4.1 VISION, MISSION & OBJECTIVES

4.1.1 VISION

Our business vision is to become one (1) of the successful

entrepreneur companies in multi-marketing business by providing
clothing line, range of cookies and transportation. We envision
providing the best services to fulfill our customers’ satisfaction.

4.1.2 MISSION

We target within three (3) years our range of products and services
would be able to be known among west Malaysian, Sarawak and
Brunei market.

4.1.3 OBJECTIVES

 To broaden, expand and diversify business scope in the field

of supply and services.

 Our presence in this business line is to provide the best

services and to meet the needs and satisfaction of our
customers.

 Dealing with more efficient and professional customers.

 Handling all matters according to company procedures through

work ethics and pure value creation between suppliers and
customers.

 Provides quality services by implementing various types of

effective marketing techniques to maximize customer
satisfaction.

 Always be sensitive and ready for any changes that take place
in order to improve service quality over time.

 Consistent in dealing with ordering and purchasing issues so

product delivery can be channeled to customers immediately.
This objective is in line with the efforts of the Malaysian government in
generating aggressive generation of entrepreneurs who are keen towards
achieving "Vision 2020" and also to build the "Bumiputera Commercial and
Industrial Community (MPPB)"In order to achieve the highest standards of
performance and become a competitive Bumiputera company, we shall
ensure the quality of services and supplies are in conformance to our
customers taste and desires.
4.2 LAYOUT PLAN

CAR RENTAL
L-SHAPE PC
ENTRANCE
GLOBAL SPEED SOFA
MANAGEMENT
SERVICES

RAC COOKIES

MEETING TABLE

CLOTHING

NAISHO/ STYLE STUDIO

WASH
FITTING ROOM
WASH ROOM
BASIN

Figure 1.6 Layout Plan

 4.3 ORGANIZATION CHART

Natasha Fitriyanne
(General Manager)

Deidre Maryanne Florence George Rohani Janim

(Marketing Manager) (Admin Manager) (Finance Manager)

Figure 1.7 Organization Chart

4.4 MANPOWER PLANNING

NO POSITION NO.OF STAFF

1 GENERAL MANAGER 1
2 ADMIN MANAGER 1
3 MARKETING MANAGER 1
4 FINANCE MANAGER 1

4.5 SCHEDULE OF TASK AND RESPONSIBILITIES

POSITION MAIN TASK

General - Coordinating and directing within an organization acting on the

Manager monitoring of workflows and integrating all elements of the
organization.
- Responsible for efficient use of resources efficiently to achieve
defined goals and objectives.
- Responsible for the failure and success of the employee under
his / her management.
- Set goals, plans, and policies and implement strategies.
- Control human resources, finances and marketing

- Monitor facilities to ensure that they are in good condition and

Admin
safe as well maintained
Manager
- Direct and coordinate support services
- Set goals and deadlines
- Prepare and review operating reports and schedules to ensure
accuracy and efficiency
- Acquire, distribute, and store supplies
- Carry out relevant tasks;
Marketing - Identify the target market and analyze current market trends
Manager - Review customer needs and requirements as well as
competition information
- Develop and implement strategic plans to meet customer
demand
- Manage activities to promote products
- Monitor the progress of promotional activities
- Develop an effective marketing communications program
- Writing marketing materials like brochures and web pages
 - Monitor marketing campaigns to ensure appropriate execution
- Managing marketing budgets and ensuring all marketing
activities are always in line with budgets
- Ensuring the distribution of marketing materials effectively
- Manage shooting and updating databases
- Conduct surveys to understand customer demand and manage
brand positioning

- Make short-term and long-term investment and investment

Finance
decisions
Manager
- Make financial planning and forecasts
- Financial control and coordination

4.6 SCHEDULE OF REMUNERATIONS

MONTHLY
POSITION NO. OF STAFF
SALARY

GENERAL MANAGER 1 RM 1,500.00

ADMIN MANAGER 1 RM 1,200.00

MARKETING MANAGER 1 RM 1,200.00

FINANCE MANAGER 1 RM 1,200.00

4.7 LIST OF OFFICE EQUIPMENT

4.7.1 LIST OF FURNITURE, FITTING & EQUIPMENT

NO ITEM QTY

1 PC Desktop 1 no

2 3 in 1 Printer 1 no

3 Computer Table 1 no

4 Executive Chair 1 no

5 Cash Register 1 no
4.8 LIST OF STATIONERIES

NO ITEM QTY PRICE TOTAL

1 Hard Cover File 4 nos RM 3.70 RM 14.80

2 Pen 12 pieces RM 0.80 RM 9.60

3 Correction Liquid 2 nos RM 5.20 RM 10.40

4 A4 Paper 10 reams RM 12.50 RM 125.00

5 Calculator 2nos RM 15.00 RM 30.00

6 Paper Clips 10 boxes RM 0.60 RM 6.00

7 Stapler (Small) 2 nos RM 5.10 RM 10.20

8 Stapler (Big) 2 nos RM 25.30 RM 50.60

Staples
9 20 boxes RM 28.00 RM 28.00
(Size: No.3-1M)

Staples
10 20 boxes RM 18.80 RM 18.80
(Size :No.10-1M)

11 Waste bins 4 nos RM 3.70 RM 14.80

12 Scissors 2 nos RM 3.80 RM 7.60

5.0 MARKETING PLAN

Marketing plan can help a company to expand products and services to meet your
target market needs. Good marketing can help customers understand why your
product or service is better or different from your competitors.

A good marketing plan can help you reach your target audience and it is often
necessary when looking for money and helps you set clear, realistic and measurable
goals for your business.

Therefore, the main purpose of Next In is to developing a marketing plan requires

research, time, and commitment, but this is a very valuable process that can make a
significant contribution to the success of the business.

5.1 MARKETING OBJECTIVES

Since Next In is a multi – business, so the marketing objectives are:-

 To be able on overcome our initial cost within 1 years.

 To gain respect and trust from our customer by fulfilling their needs and
request.

 To overcome other competitors by using a well organize business strategies

5.2 PRODUCTS & SERVICE DESCRIPTION

Next In. offer multi – business where we are selling product of pre – loved
clothing, cookies and the car rental service. Pre – loved clothing business, Style
Studio and NaisHo offer second – hand clothing for women that could meet any
customers’ budget. Pre – loved clothing includes variety of dresses, jackets,
tops, skirts etc.

Meanwhile, RaC Cookies is selling different kinds of cookies. These are the list
of cookies such Makmur Kacang, Milk Cerelac, Tart Nenas, Biskut Ulat Bulu and
Biskut Semperit.
 Global Speed Management Services provides car rental service with the slogan
of Cheap, Convenience and Savvy. It is set to deliver our services at your door
steps. It is also a company that will be dedicated to establishing good business
relationship with our clients giving them value for their money and reasons for
them to rent and lease our cars over and over again.

5.3 TARGET MARKET

The target market refers to a group of customers or buyers and the organization
is trying to attract them to use their services and purchase their products. For our
company Next In, has identified the target market as an important factor to
enable us to predict the actual and potential customers in the market. Customers
will actually buy our products and use the services that we are providing.
Moreover the importance of identifying the target market is so that we can do an
early estimation whether our products and service is competitive enough in the
market. Thus, Next In has decided to use three (3) general strategies namely to
select the target market, to attract the entire market through a marketing mix, to
focus on one segment or use multiple combinations and to attract multiple
segments. Next In.’s target market focuses on:-

5.3.1 GEOGRAPHIC SEGMENTATION

Next In will be offering products and service to the customers.

Furthermore, to accomplish our business plan, we have decided to open
our first business in Gaya Street, Kota Kinabalu. The place that we have
selected is the centre heart of Kota KInabalu and known as the golden
triangle. Hence, our customers can easily deal with us. We consider this
is the one of the techniques to attract more customers.

5.3.2 DEMOGRAPHIC SEGMENTATION

A statistical view of a population, generally including age, gender, income,

schooling, and occupation defined the demographic segmentation.
Understanding the demographics of the target customers is critical for the
success of our business. Our demographic target for our pre-love clothing
line is for the middle income level, mostly female students and teenagers.
 Cookies range targeted cookies lovers who are too busy to bake cookies
and prefer home-made products because of its affordable price range
whereby we target working class customers with the age range 21-55 to
use our car rental services.

5.4 COMPETITORS

COMPETITORS STRENGTHS WEAKNESSES

 Strong brand name  Unfriendly staff

Labelz  Have their own regular  Less choice of
customer fashion.

 Good environment with nice

Bits & Bites
interior  Unaffordable price

 Well known
Port View Euro
Bakery  Have their own regular  Unaffordable price
customers

Pang’s Café  Many choices of menu

 Unaffordable price

Omma’s Oven  Many choices of menu

 Expensive

Borneo Express
 Is known by many  Does not provide
Rent A Car & tours
companies personal tour
Sdn. Bhd.

KK Leisure Tour &

 Is known by many  Only for tour around
Rent A Car Sdn.
companies 20 people.
Bhd

KMT Global Rent A

Car  Is known by many  Unaffordable price
companies
5.5 SALES FORECAST

MONTH SALES COLLECTION

JANUARY RM1000

FEBRUARY RM1000

MARCH RM1000

APRIL RM1000

MAY RM1000

JUNE RM1000

JULY RM1000

AUGUST RM1000

SEPTEMBER RM1000

OCTOBER RM1000

NOVEMBER RM1000

DECEMBER RM1000

TOTAL RM12,000

Figure 1.8 Sales Forecasting

5.6 MARKET STRATEGY

Marketing strategy is one of the key elements in promoting our new company.
This method will help our organization to provide quality of products and
services from our business. Next In. also offers customers our products and
services at a reasonable price to meet customers’ needs. Marketing strategies
also a key idea to provide customers’ satisfaction and competitive advantage
for the company.

Therefore, we ate using the 4Ps marketing strategies which each of these
strategies have their own attribute to market our business

i. Product / Service strategies

ii. Pricing strategies
iii. Place strategies
iv. Promotion strategies

5.7 PRODUCT / SERVICE STRATEGIES

Typically, there is a physical differences in a product that will attract consumers

to make a purchase. These differences can be seen through different
packaging, product features, the performance of the offered products to the true
standard, the effectiveness of the user and the content used. These differences
can affect users in purchasing decisions on a product.

In Next In, we are aware of technological changes, needs and wants of

consumers and the economic environment. Meeting the needs of consumers
often causes changes to existing products. Thus, for our cookies products we
focus on the attractive packaging and the taste quality. For our clothing line,
even though it is pre-love clothing we will ensure that the range offered is free
from tear and discoloration whereas for our car rental services, we will focus on
the consistent servicing, safety and cleanliness.
5.8 PRICING STRATEGIES

We are taking into account the cost of production, distribution costs, and
competitive cost structure in the market. Some factors need to be considered in
determining the prices of goods offered by the business. Amongst are:

- The total price of the actual cost of the product is offered

- The assessment of the selling price offered by the competitor
- To evaluate the discount structure to be introduced
- To evaluate the response of target users to the value of our products with
Competitors
- The appropriate price selection for a product must not be too high where this
will cause the customer to choose a competitive product.

Thus, in Next In, our products price shall be competitive and affordable
whereby our services shall value the price offered.

5.9 PLACE STRATEGIES

Places or locations also play an important role in the marketing activities. Any
issues related to the location and how to interrelate the delivery activities
between our product and our customers are the reason of the selected location
which is an important aspect of the strategy in order for customers to access to
the products or services offered.

Thus, we chose Gaya Street to operate our business due to its strategic
location and easy access for high market size.

5.10 PROMOTION STRATEGIES

Promotion is a form of communication used to inform, persuade, convince

potential customers to try and buy the products and services marketed.

The most important promotional tools are:

 Advertisement
That is a non-personal communication form used by sponsors to inform
potential buyers/users of a product/services
  Personal / Direct Sales
Sale from door to door where the seller will explain to prospective
buyers about the product. Many industrial products use this method to
increase sales while providing additional services. Salesperson will
show usage methods to customers especially for technical and
advanced tools / products.

 Sales promotion
This method is always used for less expensive products, which
involves an attraction to prospective buyers/users. Free gifts, coupons
and discounts are offered to buyers to attract them to buy/use the
product/services.

 Publicity / Public Relations

Engage in all forms of communication to build the image of both the
company and its products.

In Next In, we had developed advertising page in order to promote our new
business to the society who is yet to come to know the existence of our products
and services through social network such as Facebook and outdoor advertisement.

Figure 1.9 Sample poster for display purpose

5.11 BUSINESS CARD

We also create our company business card that allows customers to contact
us for any business deals. The card contains our company's name, logo,
name, address and contact number.

Figure 1.10 Business Cards Sample

5.12 MANPOWER PLANNING

5.12.1 LIST OF TASK AND RESPONSIBILITIES

Position No. of Task and Responsibilities

Personnel

Marketing 1 Develop new marketing strategies to

Manager promote the company products and service
Organize and analyze market research and
surveys and generate report on services
Develop staff policy among staffs.

Figure 1.11 List of Marketing Personnel

5.12.2 SCHEDULE OF REMUNERATION

Position Qty Monthly Salary

Marketing 1 RM1,200.00
Manager

Figure 1.12 Schedule of Remuneration

5.13 MARKETING BUDGET

Item Fixed Monthly Other

Assets Expenses Expenses

(RM) (RM) (RM)

Fixed Asset

Signboard 500

Working Capital 1,000

Promotion 480

Internet

Other Expenditure 1,000

Other Expenditure

Pre Operations

Deposit (Rent, Utilities,

ETC)

Business Registration &

Licenses

Insurance & Road Tax for

Motor Vehicle

Other Expenditure

TOTAL 2,480

Figure 1.13 Marketing Budget

5.14 OPERATION PLAN
5.14.1 PROCESS OF OPERATION PLAN

Figure 1.14 Process of Operation Plan

5.14.2 PROCESS OF PRODUCTION PLAN

Figure 1.15 Process of Production Plan

5.15 OPERATION HOURS

Business Total Hours

Day
Hours Per Day

Monday to 8:00am –
13 Hours
Saturday 9:00pm

8:00am –
Sunday 8 Hours
5:00pm

Public 8:00am –
8 Hours
Holiday 5:00pm

Figure 1.16 Next In Operation Hours

5.16 OPERATION LAYOUT

Figure 1.17 Operation Layout

5.17 OPERATION BUDGET

Monthly
Fixed Other
Item Expense
Assets Expenses
s
(RM) (RM)
(RM)

Fixed Asset
Machine & 1,000
Equipments

Working Capital
Raw Materials
Carriage Inward &
Duty 600
Salaries, EPF & 200
SOCSO
12,000

Other Expenditure

Pre Operations
Deposit (Rent,
Utilities, ETC)
Business
Registration &
Licenses
Insurance & Road
Tax for Motor
Vehicle
Other Expenditure

TOTAL
13,800

Figure 1.18 Operation Budget

6.0 FINANCIAL PLAN

Financial planning is a plan outlining efforts involving some disciplines to better

manage the sources of income, assets and debts so that every expenditure incurred
benefits optimally. Even if it is possible, it is possible to keep savings and investments
that will ensure long-term income. By managing our finances as a student, we can
certainly afford to spend only on their ability, and will only make financial commitments
that can be solved.

Loans and financial commitments such as debt will be in line with the repayment
capabilities. And it would not be a problem that would be the cause of the other bigger
problem later on. In short, managed finances can provide comfort and comfort.
Hence, it will prompt us to inculcate full attention to the subject matter and what
activities are carried out.

6.1 FINANCIAL PLAN OBJECTIVES:

 It's important to create a small business
 Help businesses more effectively, navigating businesses away from
problems that prevent success.
 The mistake of a trader is to fail to collect and analyze basic financial
data.
 Most important thing is to increase revenue and minimize the expenses
and use existing raw materials.

6.2 SHORT TERM STRATEGY

 Provide maximum satisfaction to customers
 Maintain customer loyalty by providing the best service
 Maximize profits
 Expanding the market
 Always provide customer friendly service

6.3 LONG TERM STRATEGY

 Maintain the standard price
 Maximum customer satisfaction
 To expand and to be known in West Malaysian, Sarawak & Brunei
 6.4 START UP COST

Capital Expenditure
Estimated Economic
Types of Fixed Assets Estimated Cost (RM)
Life (years)
Administrative/Organisation
Land & Building 225,000
Office Equipment 500 5
Motor vehicles 48,000 9
Computer 6,000 5
5
Sales/Marketing
5
5
5
5
Operations/Technical
Machines 500 5
5
5
5
Total 280,000

Figure 1.19 Start up Cost

6.5 WORKING CAPITAL

Pre-Operating & Working Capital Projections

Pre-Operating & Incorporation Costs (one-off) RM
Development cost 25,000
Business incorporation 2,000
Deposit (rent, utilities, etc.) 2,000
Other pre-operating & incorporation costs 1,000
Sales & Marketing Costs (monthly)
Promotions and advertising 1,000
Internet 480
General & Administrative Costs (monthly)
Administrative salaries 1,200
Office rent 3,000
Utilities 3,000
Office supplies 500
Operations & Technical Costs (monthly)
Purchase of Raw Materials/Goods 600
Carriage Inwards 200
Salaries, Wages, EPF & SOCSO 6,436
Business registration, licenses, road tax 2,000
Other Expenditure (annually)
Total Pre-Operations & Working Capital
48,416
Expenditure

Annual Increase in Working Capital (if any)

Year 2 5%
Year 3 5%
Tax Rates
Year 1 20%
Year 2 20%
Year 3 20%
Year 4 20%

Figure 1.20 Working Capital

 6.6 START-UP CAPITAL AND FINANCING

Sources of Project Financing

Own Contributions
Capital Expenditure Cost Existing F. Loan Hire-Purchase
Cash Assets

Land & Building 225,000

225,000

Office Equipment 500

500

Motor vehicles 48,000

48,000

Computer 6,000
6,000
Working Capital
Sales & Marketing
1,000
Costs (monthly) 1,000
General &
Administrative Costs 7,700
(monthly) 7,700
Operations &
Technical Costs 9,236
(monthly) 9,236
Pre-Operating &
Incorporation Costs 30,000
(one-off) 30,000
Other Expenditure
(annually) -
Provision for
16,772
Contingencies 16,772

TOTAL 343,708 71,208 273,000

Figure 1.21 Start-up Capital & Financing

 6.7 SALES AND PURCHASE PROJECTION

Sales & Purchase Projections

Sales Projections RM Purchase Projections RM

January 2016 10,000 January 2016 1500

February 2016 10,000 February 2016 1,500

March 2016 10,000 March 2016 1,500

April 2016 10,000 April 2016 1,500

May 2016 10,000 May 2016 1,500

June 2016 10,000 June 2016 1,500

July 2016 10,000 July 2016 1,500

August 2016 10,000 August 2016 1,500

September 2016 10,000 September 2016 1,500

October 2016 10,000 October 2016 1,500

November 2016 10,000 November 2016 1,500

December 2016 10,000 December 2016 1,500

Total 2016 120,000 Total 2016 18,000

Total 2017 240,000 Total 2017 36,000

Total 2018 360,000 Total 2018 54,000

 Sales Collections Purchase Payments
In the month of
In the month of sales 100% purchase 100%
One month after
One month after sales 0% purchase 0%
Two months after
Two months after sales 0% purchase 0%

Ending Inventory of Raw Ending Inventory of

RM RM
Materials Finished Goods

End of 2016 500 End of 2016 3,000

End of 2017 700 End of 2017 3,500

End of 2018 1,000 End of 2018 4,000

1,200 4,500

1,400 5,000

Figure 1.22 Sales & Purchase Projection

6.8 CASH FLOW PROFORMA STATEMENT

2016 2017 2018

CASH INFLOW

Capital (Cash) 79,208 0 0

Loan 273,000 0 0
Cash Sales 20,000 240,000 360,000
Collection of Accounts Receivable 0 0 0

TOTAL CASH RECEIPT 372,208 240,000 360,000

CASH OUTFLOW

Pre-operating & Incorporation

30,000
Expenditure
Sales & Marketing Expenditure 2,000 12,600 13,230
General & Administrative
15,400 97,020 101,871
Expenditure

Operations & Technical Expenditure 20,273

129,219 144,860

Other Expenditure 0 -
-
Purchase of Fixed Assets 287,500
Hire-Purchase Repayment:

Principal 0 -
-

Interest 0 -
-
Loan Repayment:

Principal 3,617
22,790 23,929

Interest 2,275
12,565 11,425
Tax Payable 0 0 0
TOTAL CASH OUTFLOW 361,065 274,193 295,315
CASH SURPLUS (DEFICIT) 11,143 (34,193) 64,685
BEGINNING CASH BALANCE 0 11,143 (23,050)
ENDING CASH BALANCE 11,143 (23,050) 41,634

Figure 1.23 Cashflow Porforma Statement

6.9 TOTAL CASH INFLOWS AND OUTFLOWS

Total Cash Total Cash Ending

SUMMARY
Inflows Outflows Balance
2016 372,208 361,065 11,143
2017 240,000 274,193 (23,050)
2018 360,000 295,315 41,634
0 0
0 0

Figure 1.24 Total cash inflows & outflows

6.10 ANNUAL CASH BALANCE

Figure 1.25 Annual cash balance

6.11 INCOME STATEMENT

Years 2016 2017 2018

Sales 20,000 240,000 360,000
Less: Cost of Sales (Notes 1 & 2) 7,600 22,420 32,746
Gross Profit 12,400 217,580 327,254

Less: Expenditure
Pre-Operating & Incorporation
28,000
Expenditure
General & Administrative
15,400 97,020 101,871
Expenditure
Sales & Marketing Expenditure 2,000 12,600 13,230
Operations & Technical
Expenditure 16,873 106,299 111,614
Other Expenditure
Interest on Hire-Purchase
Interest on Loan 2,275 12,565 11,425
Depreciation of Fixed Assets 8,233 8,233 8,233
Total Expenditure 72,781 236,717 246,373
Net Income Before Tax (60,381) (19,137) 80,881
Tax 0 0 0
Net Income After Tax (60,381) (19,137) 80,881
Accumulated Net Income (60,381) (79,518) 1,363
Cost of Sales
Opening inventory 0 3,000 3,500
Add: Total Purchases 10,200 20,400 30,600
Carriage Inwards & Duty 400 2,520 2,646
Less: Ending Inventory 3,000 3,500 4,000
7,600 22,420 32,746

Figure 1.26 Income Statement

6.12 TOTAL SALES, TOTAL EXPENDITURE AND NET INCOME

Total
SUMMARY Total Sales Net Income
Expenditure
2016 20,000 72,781 (60,381)
2017 240,000 (19,137) (19,137)
2018 360,000 80,881 80,881
#VALUE! #VALUE!
#VALUE! #VALUE!

Figure 1.27 Total Sales, Total Expenditure & Net Income

6.13 NET INCOME, EXPENSES AND SALES

Figure 1.28 Net Income, Expenses & Sales

6.14 PRODUCTION COST PROFORMA STATEMENT

Pre-Operating & Working Capital Projections

Pre-Operating & Incorporation Costs (one-off) RM

Development cost
25,000
Business incorporation 2,000
Deposit (rent, utilities, etc.) 2,000
Other pre-operating & incorporation costs 1,000
Sales & Marketing Costs (monthly)
Promotions and advertising 1,000
General & Administrative Costs (monthly)
Administrative salaries 1,200
Office rent 3,000
Utilities 3,000
Office supplies 500
Operations & Technical Costs (monthly)
Purchase of Raw Materials/Goods 600
Carriage Inwards 200
Salaries, Wages, EPF & SOCSO 6,436
Business registration, licences, road tax 2,000
Other Expenditure (annually)
Total Pre-Operations & Working Capital
Expenditure 47,936

Annual Increase in Working Capital (if any)

Year 2 5%
Year 3 5%

Tax Rates
Year 1 20%

Year 2 20%
Year 3 20%

Figure 1.29 Production Cost Proforma Statement

6.15 BALANCE SHEET

Pro-forma Balance
Sheet
2016 2017 2018

Non-Current Assets (Book

Value)
Land & Building 225,000 225,000 225,000

Other Fixed Assets

54,267 46,033 37,800
Other Assets
Deposit 2,000 2,000 2,000
281,267 273,033 264,800
Current Assets
Inventory 3,000 3,500 4,000
Accounts Receivable
Cash Balance 11,143 (23,050) 41,634
14,143 (19,550) 45,634
TOTAL ASSETS 295,410 253,483 310,434

Owners' Equity
Capital 79,208 79,208 79,208
Accumulated Income (60,381) (79,518) 1,363
18,827 (310) 80,571
Long-Term Liabilities
Loan Balance 269,383 246,593 222,663
Hire-Purchase Balance

269,383 246,593
222,663
Current Liabilities
Accounts Payable
TOTAL EQUITY &
288,210 246,283 303,234
LIABILITIES

Figure 1.30 Balance Sheet

6.16 TOTAL ASSETS, TOTAL LIABILITIES AND TOTAL EQUITY

SUMMARY Total Assets Total Liabilities Total Equity

2016 295,410 269,383 18,827

2017 253,483 246,593 (310)

2018 310,434 222,663 80,571

Figure 1.31 Total Assets, Total Liabilities & Total Equity

6.17 EQUITY, LIABILITIES AND SALES

Figure 1.32 Equity, Liabilities & Sales

6.18 PRO-FORMA INCOME STATEMENT

Pro-forma Income Statement

Years 2016 2017 2018

Sales 20,000 240,000 360,000
Less: Cost of Sales (Notes 1 & 2) 7,600 22,420 32,746
Gross Profit 12,400 217,580 327,254
Less: Expenditure
Pre-Operating & Incorporation
28,000
Expenditure
General & Administrative
15,400 97,020 101,871
Expenditure
Sales & Marketing Expenditure 2,000 12,600 13,230
Operations & Technical
Expenditure 16,873 106,299 111,614
Other Expenditure
Interest on Hire-Purchase
Interest on Loan 2,275 12,565 11,425
Depreciation of Fixed Assets 8,233 8,233 8,233
Total Expenditure 72,781 236,717 246,373
Net Income Before Tax (60,381) (19,137) 80,881
Tax 0 0 0
Net Income After Tax (60,381) (19,137) 80,881
Accumulated Net Income (60,381) (79,518) 1,363

Cost of Sales
Opening inventory 0 3,000 3,500
Add: Total Purchases 10,200 20,400 30,600
Carriage Inwards & Duty 400 2,520 2,646
Less: Ending Inventory 3,000 3,500 4,000
TOTAL 7,600 22,420 32,746

Figure 1.33 Proforma Income Statement

7.0 CONCLUSION

Based on the revenue plans and projections presented, Next In is confident that the
business will bring a good returns. The projections and estimates made for the first
year of operations after financing are quite conservative as it takes into account the
still-established business factors where new promotions and marketing are launched.

Systematic research and planning has been designed to enable the business to run
smoothly and ultimately achieve the targeted profit targets. Therefore, Next In
Company is optimistic about this business and is confident it is viable and able to
grow in the future.

Therefore, the owners are very hopeful that this application will be properly taken into
consideration by End Financier so that through this financing, the business can
operate more efficiently and be able to expand and contribute to the national
economy.
8.0 APPENDICES

Butte-Silver Bow Chamber of Commerce Official Site. (n.d.). Retrieved from

http://www.buttechamber.org/Gorman, Bill (2009)

TV by the Numbers by zap2it.com. (2009, July 29). Retrieved from

http://tvbythenumbers.com/2009/07/29/cake-boss-renewed-by-tlc/23822

Duermyer, R. (2006, March 12). Marketing Strategy: What it is and how do you
develop one in your home business? Retrieved from
https://www.thebalancesmb.com/marketing-strategy-for-home-business-success-
1794314

How to Start a Business Selling a Homemade Product. (2011, May 18). Retrieved
from http://smallbusiness.chron.com/start-business-selling-homemade-product-
10927.html

5 Benefits of Buying Pre-loved Clothing. (2017, August 31). Retrieved from

http://www.literallydarling.com/blog/2017/08/31/5-benefits-buying-preloved-
clothing/

Palo Alto Software. (n.d.). Mopeds Rental Business Plan Sample - Executive
Summary B plans. Retrieved from
https://www.bplans.com/mopeds_rental_business_plan/executive_summary_fc.php

How to Start a Rental Car Business. (2008, December 18). Retrieved from
https://bizfluent.com/how-4683608-start-rental-car-business.html