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BUSINESS PLANLECTURERS NAME : DR NOOR FADHIHA BT

OTHMAN

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To serve UMT students by selling their

need and want.To earn higher profit by attract more

customers.

To become the largest shop in UMT.

To be first choice of shop for UMTsstudents.

OBJECTIVES

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We are using five main strategies as the key of success:

Trained a team of effective worker to give the bestservices to our customers.

Manage the inventories effeciently by close monitoringwaste.

Always ensure that our stocks in high qualities.

Set the location of business in the strategic place. Ensure that our image of our business always in the high

level.

KEYS TO SUCCESS

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Rakan Enterprise is a new business inUniversity Malaysia Terengganu (UMT). Ourshop located in front the hostel UMT. Ourshop provide such as stationery, dailynecessities, food & drinks and some services.

We want to give our service to UMT studentsby selling product they need. Therefore, ourshop hope can attract more customers andearn higher profit.

EXECUTIVE SUMMARY

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Rakan Enterprise is a partnership that

own by four partners include Tuan FarahFarhana, Yee Juet Reen, Ariesha Nur

Azreen and Tan Hui Yin. We are sharingour own experince and ability during

forming our grocery shop.

COMPANY

OWNERSHIP

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Rakan Enterprise start up cost is amountRM30,950. It has including:

Legal RM1,800Insurance RM200

Rent RM120

Other RM80

Cash Required RM10,000

Start-up Inventory RM3,500

Other Current Assests RM2,000

Long Term Assests RM5,000

START-UP SUMMARY

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Product and service

Pen and foolscap paper

Detergent , soap,toothpaste, toothbrush ,etc.

Snacks , soft drink ,breads , yogurt , biscuits

, maggie , ice cream,etc.

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PRODUCT AND

SERVICEWe are providing the

computer services ,photostat services , and

top-up mobile phoneservices. Examples ofservice including:

1. Online and printing service

2. Photostat in colour or blackand white

3. Top-up to all network

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FOOD ANDDRINKS

BREADS ABOVE RM 0.80 (dependtypes)

BISCUITABOVE RM 1.50 (depend types)

DRINKS ABOVE RM 1.80 (depend types)

STATIONERY (depend types)

SERVICES PHOTOSTAT RM 0.10 PER PRICE

PRINTING RM 0.15 PER PRICE

TOP-UP ABOVE RM 5.00

PRODUCT AND SERVICEDESCRIPTION

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LOCATION AND FACILITIES-Rakan Enterprise is located at UMT. We set our shop in frontof the UMTs student hostel. We have some stand to put our

products. Besides that, the wholesaler or supplier are supplingthe refrigerator for us to keep their drinks products. We also seta counter for our cashier

PERSONNEL PLAN- Our grocery is form by 5 people. We are including one owner,

three partners and one worker. Four of us are all students inUMT. We are discuss to start a own business but since lack ofcapital, so we decide to become partners in the business. Wewill share the profit that we get. We will not taking the salaryfrom our business.

.

OPERATIONAL PLAN

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MANAGEMENT SUMMARY

-Rakan Enterprise have a very simple management

because we have only one employee. Size of our shopis small and we dont need too much of workers. Wewill only hire those worker which are responsibility andindependent. We need an independent worker can

facing unexpected problems. Therefore, he/she know tohandle the problem.

-The arrangement for the product will arrange by typeson products.

OPERATIONAL PLAN

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YEE JUET REEN

PRESIDENT

TUAN FARAH FARHANA

MARKETINGMANAGERS

TAN HUI YIN

OPERATIONALMANAGER

ARIESHA NUR AZREEN

FINANCIALMANAGER

ORGANIZATIOANAL

CHART

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Four of us are all students in University Malaysia

Terengganu. We are discuss to start a own businessbut since lack of capital , so we decide to becomepartners in the business. Our total capital isRM24,000 and each person is RM6,000.

MANAGEMENT

TEAM

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Rakan Enterprise is lack of the perfect manage system of

inventory. Therefore, our inventory management wasunefficiency . We using the normal system to record all

the purchases and sales inventory every month. We keepall the invoice for purchases and sales.

We are trying to use computer database system toovercome this problem. We try to learn the way to recordthe flow of inventory every day into database. That is

more accuracy and efficiency to record our inventory. Wealso can make sure our inventory always in correctquantity. We can see more clear and easy to makeanalysis about our business performance.

MANAGEMENT TEAM GAPS

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Our products and services are more depends on the

needs of universitys students because they are ourmajor customers.

We also expect that the university students willpurchase in our shop is around 21600 people in thefirst year. Besides that maybe have 9000 staffs willpurchase in our shop the first year. Visitor are theminor segment. We expects that the visitors is justaround 5400 people will purchase in our shop for thefirst year.

MARKETING PLAN

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Helpful Harmful

Internal origin Strength:Shared risks

Shared knowledge andexpertise

Longer business hour

Weakness:Does not have a systematic

systemNot enough capital

External origin Opportunity:Market presence Synergy

potential customereconomy stable

Threat:Incompatibility of partners

Limited access toinformation

Competitive with others

competitors

SWOT ANALYSIS

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We are targeting UMT students as our main target

customers. It is because they are the large amountcustomers that will purchase in our shop.

The other groups such as the UMT s staff and visitorsare not always purchase in our shop. That is becausethey are not always come to our shop area. Therefore,we does not put a high expectation to the staffs andvisitors of University Malaysia Terengganu.

TARGET MARKET

SEGMENTATION

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Our main marketing strategy is to satisfy customersby provide different types of products and services.

Our second marketing strategy is segmentationstrategy. We need to know our main customers arestudents in UMT, we need to do some researchesthat what actually they need. We will distribute some

brochures for our shop to become the 1

st

choicewhen students think of grocery shop.

MARKETING STRATEGY

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Seen our grocery shop Rakan Enterprise are a smallbusiness and we are just a university students, we doesnot have a large capital to make a large business.Therefore, in around three years, we are possibility notto make any distributions.

Pricing strategyWe try to caught the loyalty of customers, so we try to

set a fair and good prices for the customers. We set the

profit as the 40% or below from the direct cost. It is nottoo high for customer and it is enough us to get theprofits from the sales.

Distribution strategy

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Rakan Enterprise are doing the start-up promotionfor 5 days to attract new customers. We will give the30% for the customer who purchase in our shop for

first three hours. Later the promotion will be 10%discount for whole day.

Promotion strategy

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YEARS 2013 2014 2015RM RM RM

Food and drinks 25,730.00 31,000.00 34,590.00

stationery 18,200.00 20,000.00 22,890.00

Printing and Photostat services 17,010.00 20,000.00 21,000.00Top-up services 27,410.00 32,400.00 33,800.00

Total sales 88,350.00 103,400.00 112,280.00

Direct Cost of Sales

Food and drinks 11,765.00 13,780.00 14,890.00stationery 6,840.00 8,900.00 9,400.00

Printing and Photostat services 6,100.00 7,590.00 8,130.00

Top-up services 14,250.00 15,980.00 16,980.00

SUBTOTAL DIRECT COST OFSALES 38,955.00 46,250.00 49,400.00

SALES FORECAST

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Our grocery shop are expect to grow in the rate of20% for the total profits every years. We try to

improve as many as possible in our quantity andquality of products and services. It may help us toattract more customers to purchase in our shop.

FINANCIAL PLAN

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Start-up Funding

RMStart-up Expenses to Fund 1,400.00

Start-up Assets to Fund 22,600.00

Total Funding Required 24,000.00

Assets

Non-cash Assets from Start-up 12,600.00Cash Requirements from Start-up 10,000.00

Cash Balance on Starting Date 10,000.00

Total Assets 32,600.00

Capital

Owner 6,000.00Investors 18,000.00

Total Planned Investment 24,000.00

Loss at Start-up (Start-up Expenses) (1,400.00)

Total Capital 22,600.00

Total Funding 24,000.00

START-UP FUNDING

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Pro Forma Cash Flow2013 2014 2015

RM RM RM

Cash from Operations

Cash Sales 88,350 103,400 112,280

Subtotal Cash from Operations 88,350 103,400 112,280

Expenditures from Operations

Cash Spending 6,000 6,600 7,200

Bill Payments 68,836 85,119 93,201Subtotal Spent on Operations 74,836 91,719 100,401

Net Cash Flow 13,514 11,681 11,879

Cash Balance 23,514 35,195 47,075

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PROFIT AND LOSS2013 2014 2015

RM RM RM

Sales 88,350 103,400 112,280

Direct Costs of Goods 38,955 46,250 49,400

Other Costs of Goods 25,000 30,000 35,000

Total Cost of Sales 63,955 76,250 84,400

Gross Margin 24,395 27,150 27,880

Gross Margin % 27.61% 26.26% 24.83%

ExpensesPayroll 6,000 6,600 7,200

Marketing/Promotion 500 500 500

Rent 1,440 1,440 1,440

Utilities 1,200 1,200 1,200

Insurance 2,400 2,400 2,400

Payroll Taxes 645 840 720Other 960 960 960

Total Expenses 13,145 13,940 14,420

Profit Before Interest and Taxes 11,250 13,210 13,460

EBITDA 11,250 13,210 13,460

Taxes Incurred 1,125 1,453 1,615

Net Profit 10,125 11,757 11,845Net Profit/Sales 11.46% 11.37% 10.55%

Pro Forma Balance Sheet

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Pro Forma Balance Sheet

2013 2014 2015

RM RM RM

Current Assets

Cash 23,514 35,195 47,075

Inventory 3,545 4,209 4,496

Other Current Assets 3,200 3,200 3,200

Total Current Assets 30,259 42,604 54,771

Long-term Assets

Long-term Assets 5,400 5,400 5,400Total Assets 35,659 48,004 60,170

Current Liabilities

Accounts Payable 2,934 3,522 3,843

Total Liabilities 2,934 3,522 3,843

CapitalPaid-in Capital 24,000 24,000 24,000

Retained Earnings -1,400 8,725 20,482

Earnings 10,125 11,757 11,845

Total Capital 32,725 44,482 56,327

Total Liabilities and Capital 35,659 48,004 60,170Net Worth 32,725 44,482 56,327

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THANK YOU