STYLE M

BUSINESS PLAN

BY
RACHEAL NANA DANKWANO

Cover Letter
1

Style M Fashion Enterprise.

No 54, Dpulze shopping centre,
Persiaran Multimedia, 63000 Cyberjaya,
Selangor, Malaysia.
Tel: 016-xxxxxxx

Fax: 03-xxxxxxx

General Manager
May Bank,
Cyberjaya, Selangor, Malaysia

Dear Sir,
Application for Business Loan

Referring to the subject above mentioned, I Morgan Paul from Style M Fashion
Enterprise wish to apply for a loan with May bank to start a fashion design business.
For your information, we are just a new enterprise with the plan to start a business
that cares for apparel and accessories for student and working class in Cyberjaya.
Our business is located at No. 54, Dpulze Shopping Centre, Persiaran Multimedia,
63000 Cyberjaya, Selangor, Malaysia and all the facilities and equipment needed to
ensure the smooth running of the business would be made available. This business
has the potentials to gain profit because of its uniqueness.
However, we do not have a sufficient capital to run the business. The business
needs a capital of RM92, 000. We only have RM 20,000 as for now. Therefore, we
would like to apply for a loan of RM72, 000 from your Bank.
We will be much delighted if our application is granted. We look forward to hearing
from you soon. You can contact us at 016-xxxxxxx if you wish to discuss any of the
above points. We are ready to furnish you with additional materials with regards to
this matter.
Thank you.
Yours faithfully,

(Morgan Paul)
General Manager
Style M Fashion Enterprise

BUSINESS PLAN

Fashion. See more. Do more

20th November 2016

MORGAN PAUL
Style M Fashion Enterprise
No 54, Dpulze shopping centre,
Persiaran Multimedia,
63000 Cyberjaya,
Selangor, Malaysia.

Tel: 016-XXXXXXX

EXECUTIVE SUMMARY
Style M is a fashion brand producing designers apparel and accessories that will open soon
this year in Cyberjaya, Malaysia. Just as the name of the brand suggest, our focus is to
provide western wears and accessories that is unlike anything offered in Malaysia so far for
both men and women.
We are the first and only western designers apparel and accessories store in the shopping
mall in the city of Cyberjaya. We aim at obtaining 80% market share and to become the
central hub of shopping activities for both the student and working class who are locals,
international students, tourists as well as those who enjoy wearing western designers
apparel in Cyberjaya, Malaysia.
The business goal is to provide a unique and stylish collections of western apparel and
accessories that will ensure that the students and working class citizens in Cyberjaya are
well dressed and beautify. We also aim to provide clothings and accessories to our
customers that will change frequently, with a personal service, in a friendly and relaxed
atmosphere and also at affordable prices.
The name Style M was chosen because it implies the sense of distinctive appearance and
design. And these two ideas could be easily used to draw the attention of the business target
customers. The Style M customers and the society at large enjoys fashion and go for
apparel and accessories that are trendy, yet will still allow them stand out in the crowd. They
go for an informal, unstuffy shopping atmosphere and expects attentive associates. All of
these Style M will provide.
Although, Style M owner and managers has some experience in running fashion outlet and
will apply their educational knowledge to effectively run the business as an entrepreneurship.
The business has its location in Cyberjaya which will enable it success and long term growth
in Cyberjaya.
The purpose of this business plan is to secure a RM 92,000 loan from the bank. This
supplemental financing is required to work on site preparation, inventory, and operational
expenses. The loan amount appears in the long-term liability row of the start-up summary.
Other financing will include the owners investment of RM 20,000.
Anticipated sales for the first year is RM 515,900.00, RM 564,000.00 for the second year
and RM 576,000.00 for the third year. This is based on the history of our competitors. Our
pricing strategy will be based on our objective to sale for a minimum price to receive our
customer thereby make reasonable profit. Also, emphasis will be in placed on friendly

service so as to meet not only our customers expectations but also to give them customer
satisfaction.

TABLE OF CONTENT
Item

1.0
1.1
1.2
1.3
1.4
1.5
1.6
1.7
2.0
3.0
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
4.0
4.1
5.0
5.1
5.2
5.3
5.4
5.5
5.6
5.7
6.0
6.1

Page
Introduction
8
Name of the company
8
Nature of business
8
Industry profile
8
Location of business
9
Date of commencement
9
Factors in selecting the proposed venture
9
Future prospect of the business
10
Purpose of preparing a Business plan
10
Business Background
11
Name of Business
11
Address (Business and correspondence)
11
Telephone number/Fax number/E-mail address
11
Form of business
11
Main business activities
11
Date of commencement
11
Date of registration and registration number
11
Name of bank and account number
11
Background of owner/partners
11
Personal particulars of owners
11
Background of proposed project
12
Physical location
12
Price of premise
12
Distance from source of raw materials
12
Availability of manpower
13
Transportation facilities
13
Distance from customers
13
Basic amenities
13
Organisation/Management/Administration plan
13
Organisations mission, vision, objectives, goals and keys to 13

6.2
6.3
6.4
6.5
6.6
6.7
7.0
7.1
7.2
7.3
7.4

success and features and benefits

Organisational chart/structure
Manpower planning
Schedule of task and responsibilities
Remuneration plan
List of office equipment and supplies
Administrative budget
Marketing plan
Description of products and services
Target market
Competitors
Market share
5

16
16
17
18
20
21
21
21
22
23
24

7.5
7.6
7.7
7.8
8.0
8.1
8.2
8.3
8.4
8.5
8.6
8.7
8.8
9.0
9.1
9.2
9.3
9.4
9.5
10.0

Sales forecast
Market strategy
Swot analysis of Style M
Market budget
Operational plan
Operational objectives
Business hours
Operational layout
Operational process
Amenities and facilities
Permanent assets and required items
Estimation of purchases for three years
List of raw materials, quantity and cost for a month
Financial plan
Project implementation cost schedule
Sources of finance
Pro forma cash flow statement
Pro form income statement
Pro forma balance sheet
Conclusion/ Summary and Recommendation
References

24
25
26
27
27
27
28
28
29
29
29
30
31
31
31
32
33
34
35
36
37

1.1 Introduction
1.2 Name of Business.
Style M Fashion Enterprise
1.3 Nature of Business
Style M is an enterprise that offers apparel and accessories to our customers
to meet their specification and needs. Style M is the manufacturer of an upscale
designers clothings of high quality materials like pure cotton, lace, sequins,
chiffons, wool and silk for students and working class consisting of male and
female between the age of 18 and 40. We believe that everybody nowadays
need our product because majority of them are students and also working class
which are all required to dressed in a formal and corporate attire. Style M does
not only provide clothings but also accessories such as shoes, belt, wallet made
from quality materials like hide and skin, leather, and rubber. The idea of the
business was chosen because it is a lucrative business that can survive
anywhere. This is because everybody wears cloth and want to look good
especially the youngsters. We believe that it will be successful since it is located
in the mist of students and working class who are very sensitive to fashion.
1.4 Industry profile
Fashion design is the art of application of design and aesthetics in creating
unique styles on clothing and accessories. Style M will operate as an enterprise
in the fashion industry, and more specifically in women and men apparel and
accessories industry which represent a business worth over $40 billion
7

nationwide. The demand for women and men apparel and accessories is fairly
volatile and relies heavily on some factors such as discretionary income level,
seasonal changes and fashion trends. Fashion while important for every
individual, it plays a limited role in the overall market demand.
The barriers to enter the fashion industry are relatively low. This is because
setting up a single or an independent establishment does not require much
capital. The fashion industry is generally moderate concentrated and gives no
room for small start-ups. Customers are generally loyal when it comes to certain
designers rather than an ordinary store. The threats of substitutes are relatively
low.
The fashion industry is a solid business with ever-changing styles and everpresent consumer demand. While supercentres and megastores ruled the past
two decades, more and more consumers are looking for change. They're
searching for a more serene and customer-friendly shopping experience which
Style M will provide
1.5 Location of Business
Style M will be located in Cyberjaya in the heart of Cyberjaya, Malaysia.
Specifically in No 54, Dpulze shopping centre, Persiaran Multimedia, 63000
Cyberjaya, Selangor, Malaysia. This decision was made based on some
economic and social factors which is in line with what Style M portray.
Security: Cyberjaya is generally safe with very low crime rate. CCTVs are
installed round the city with a police station dedicated to serve the whole of
Cyberjaya. Aside from these, there is also a fire house in case of any emergency.
With these, our business is assured of security in Cyberjaya.
Development: Cyberjaya is a fast developing city with universities such as MMU,
Lim Kok Wing, FTMS and more. More to that, a lot of investors from Europe and
America are familiar with environment and prefer living and working in Cyberjaya.
This means we have better chances of getting good store rent price and will help
our business because the students and working class are our target market.
Transportation system: Cyberjaya has one of the most complete transportation
system in the entire Malaysia. And also has a well-developed infrastructure. It is
8

extremely convenient for frequent traveller as it is 20 mins to reach KLIA or LCCT

and KL City Centre. This will enable our customers who are far away from
Cyberjaya to locate us.
1.6 Date of commencement
Style M will commence operation on 20th November, 2016.
1.7 Factors in selecting the propose venture
We chose this business venture due to the high potentials to make profit in
Cyberjaya. Asides from that, there are several reasons that attracted us to this
business together with the location. Some of the reasons why we decided to
establish Style M is;
Firstly, looking at Cyberjaya there are quite a lot of store where they sell
apparel and accessories but they lack a fashion design shop with unique and
outstanding products. As such, this is a very great opportunity for the company to
attract the student, working class and also the residents of Cyberjaya because
they are very sensitive to fashion especially when it is a brand. Style M will be
the first to introduce fashion designers wears and accessories in Cyberjaya.
Secondly, this venture was chosen after analysing the category of people in
Cyberjaya. There are many working men and women and also students in this
area who are pure target market. Many of them we need formal attire which Style
M will provide.
Thirdly, this venture will need services of some college students who will work
as part time. This enterprise is therefore a way of creation job opportunity for
some youngsters because job is scarce.
1.8 Future prospect of the Business
We hope that the business will be financially stable so that we can open more
branches in Malaysia. Besides that, we hope establish the business so that our
customers can shop online and get their products delivered at their door step.
Lastly, we also look forward to be supported by government and non-government
associations and also investors to make the business more stable.
2.0 Purpose of preparing a business plan
This business plan is prepared by Style M fashion enterprise as a guideline
for

managing the proposed venture in fashion design. This guide is very

important since it is a new company and will assist us in understanding the nature
of the business and also the working components of the company. So far, in
9

preparing this business plan we have made a list of the plans and strategies the
business will use to achieve its goals. The business plan is prepared to obtain a
working capital loan from bank for the amount of RM 92,000.

3.0 Business Background

Name of Business

: Style M Fashion Enterprise

Business Address

: No 54, Dpulze shopping centre, Persiaran

Multimedia,
63000 Cyberjaya, Selangor, Malaysia.
Correspondence Address :

Same as Above

Telephone Number

016-xxxxxxx

Fax Number

03-xxxxxxx

Email Address

style-m@gmail.com

Form of Business

Enterprise

Main Business Activity

Provides Apparel and Accessories

Date of Commencement

20 November 2016

Date of Registration

21 August 2016

Registration Number

J79xxxx

Initial Capital

RM 20,000.00

Name of Bank

May Bank Islamic

Bank Account Number

1204 xxxx xxxx

4.0 Background of Owner

4.1 Personal particulars of owners
10

Name of Owner

Morgan Paul

Identity card owner

xxxx-xx-xxxx

Permanent Address

Lot F8-19, Block D, No. 4 Oasis Square,

Damasara.
Jalal PJU 3a/9, 47301 Petaling Jaya Selangor.
Correspondence address :

Same as above

Telephone number

012-xxxxxxx

E-mail address

style-m@gmail.com

Date of birth

xx/xx/xxxx

Age

xx

Marital Status

Married

Academic qualification

B.Sc. Human Resources

Courses attended

Skills

Sewing, Designing clothes.

Experience

Part-time tailor.

Present occupation

Fashion designer

Capital contribution

RM 20,000

5.0 Background of the proposed project

5.1 Physical location
Style M fashion enterprise is located in the heart of Cyberjaya at shop No 54,
Dpulze shopping centre Persiaran Multimedia, 63000 Cyberjaya, Selangor,
Malaysia. The store is a very big store in the mall which is newly built.
5.2 Price of Premise

11

Since the premise is in a mall newly built, the price is quite high. We are retaining
the premise with a rental expense of RM 7,000 per month.
5.3 Distance from source of raw materials
This location was chosen due to its proximity to both road, rail and airport where
the cost of transportation to get raw material will be at a minimum level. The
sources of our raw materials are in Cyberjaya and also imported from China.
Therefore, our sources of raw material easily around and gotten at a minimum
cost.

5.4 Availability of Manpower

Fashion design requires skilled and talented workers. Our location offers a steady
supply of available talented designers. We plan to employ college student for
sales and marketing.
5.5 Transportation facilities
Buses, taxi and train station are easily accessed at the mall which our customers
can easily reach us. The location is also convenient for our suppliers of raw
materials.
5.6 Distance from Customers
Our store is located in the heart of Cyberjaya which means it is at the centre. Our
customers all around Cyberjaya can reach us easily with any transportation
means.
5.7 Basic amenities (Electricity, water and telephone facilities)
Our premise is provided with all the basic amenities. Such as water, electricity,
telephone line, and transportation. We believe that with all these being provided,
our business will operate properly and also accomplish the business goals. .
Cyberjaya has a lot of infrastructure and well equipped with basic amenities.
Other amenities provided In Cyberjaya include, police station, fire service for

12

emergencies. Other amenities include petrol station, restaurant, clinics, banks

and place of worship.
6.0 Organisation/Management/Administration plan
6.1 Organisations mission, vision, objective and goals
Logo of the Business

Fashion. See more. Do more.

Companys vision
To become a success and well reputation fashion design brand in Malaysia.
Companys mission
Style M intends to develop an inventory of unique fashion products that can
add value to both women and men wardrobe. These products which will be
source from high quality raw materials and manufactured in Cyberjaya will
enhance the image experience of everyone who holds fashion together with
quality, and high-end design with utmost importance.
It is Style M mission to bring back the enchantment of fashion all over again
in the brand couture lines.
Style m mission is to offer quality, name brand western wear in an assortment
of sizes and styles to accommodate all varying body styles and shapes.
Companys objectives
To create a shopping environment that caters to the apparel needs of the
students and working class who are locals, international students, tourist and
the society.
To hire associates that are enthusiastic, love fashion and also exhibit great
interpersonal skills.
13

 To ensure that all our employees are well versed in the latest trend and styles
through ongoing training.
To offer an array of customized style, and news to our customers.
To closely monitor our expenses and the cost of goods sold at a times so as
to achieve sales of at least 300,000 RM annually.
To properly reinvest a percentage of net income so as to ensure future
expansion in the business.
Companys goals
To get designers apparel and accessories for both women and men which
cannot be found elsewhere.
To deliver an exceptional customer service at all times.
To be known for the best fashion purchases and fashion knowledge so as to
gain brand recognition.
To reach the break-even point at the end of year one.
To experience growth, and achieve profit margins of 15% after the first year.
Keys to success
Style M believes that it has fashionable clothing line and accessories and the
right people desiring it to attract the target market. But most importantly, it is
the brand name philosophy that will ensure the success which is STYLE M.
The fashion industry demands that products are delivered on time together
with high quality execution. In pursue on these demands;
Style M will satisfy these demand by maintaining acceptable inventory levels
that will be delivered on time according to the pre-arranged shipping
schedule.
Provide our customers with top notch personalized customer service in an
atmosphere of warm hospitality.
In addition, style M will offer a unique line of products that will encourage
fashion specialty to think of our products first when looking for original
products.
Features and benefits:
One key feature that separates Style M from all other local brand and
designers in Cyberjaya is our commitment in providing women and men of
this millennium generation stylish, quality clothing options and accessories.
14

This is because our primary concern is ensuring that our customers are happy
with the fit and style of their purchase, we will provide products tailored to all
shapes and sizes of women and men. We will make every effort to have petite
and plus size versions of our merchandise in stock. In addition, we also plan
to make our products affordable to the rich and common man.
Further, Style M will not just be a brand that sells clothes and accessories.
Our clientele will benefit from an experienced, knowledgeable sales staff. Out
of the gate, our goal is to implement a superior customer service system.
Beyond our friendly reception and an inviting atmosphere, Style M will also
offer customers fashion information and advice. Our trained personnel will
provide counsel that our customers cannot find at other fashion stores.

6.2 Organisational Chart

Style M uses an organisation structure based on the functions done in the company.
The firm is divided into sales/marketing divisions, manufacturing division, purchase
division as well as finance department/ customer service. This structure fits into Style
M since the business requires functional specialities to perform the tasks. The table
below Table BP 1.1 will illustrates our proposed structure.

15

General
Manager
Finance
Division

purchase
Division

Sales and
Marketing

Operation
Division

Figure BP 1.1 Organisational Structure of Style M Fashion Enterprise.

6.3 Manpower planning.

Style M has four manager who will supervise the employees in those various
department. We also have a secretary, store manager and also a security guard
as shown in Table BP 1.2.
Table BP 1.2 position and number of personnel in Style M Fashion Enterprise.
Position
Sales/Marketing Manager
Purchase Manager
Operation Manager
Secretary
Customer Service
Security
Finance manager
Sales/Marketing Associates
Manufacturing personnel

Number of Personnel
1
2
1
1
1
1
1
4
4

6.4 Schedule of task and Responsibilities

16

Each manager and employees has his responsibilities to execute the operations
of the business. It is very vital for each manager and employee to know his task and
responsibilities s that they would do what is expected of them and also will guide
them in accomplishing their job. Table BP 1.3 describes the task and responsibilities
of each position. The following responsibilities has already been identified and will be
properly delegated to the respective person to ensure smooth running of the
business.
Table BP 1.3 Schedule of task and responsibilities of employees.
Task/position
Sales/Marketing
Manager

Responsibilities/Job description

Responsible for meeting the sales targets of the organization

through effective planning and budgeting.

Responsible for not only selling but also maintaining and

improving relationships with the client.

Responsible for brand promotion

Forecasting levels of demand for services and products to

Purchase Manager
meet the business needs and keeping a constant check on
stock levels;

Conducting research to ascertain the best products from

suppliers in terms of best value, delivery schedules and
quality.

Track and report key functional metrics to reduce expenses

and improve effectiveness

Operation Manager

Responsible for the supervision on production, inventory

and quality control.

Customer service

Finance Manager

Attracts potential customers by answering question about the

product and services; suggesting information about other
products and services.
Opens customer accounts by recording account information.

Maintains customer records by updating account information

Listens to customers complains and recommendation on the

business products.
To make and manage the preparation of budget of the

company.
To prepare forecast and accurate financial statement for the
17

company; to interpret financial statement.

To keep record of the financial record in the business.
Guard against theft and maintain security.
Respond to alarms and calls of distress.
Stop suspicious people and ask for identification.
Producing unique concept of apparel and accessories as

directed by operation manager.

Developing patterns and making sketches of by hand or on

Security

Manufacturing
employees

computer.
Analysis trends in fabrics, colour and shapes.
Engage with customer through conversation to determine the

customers needs.
Provide the business products knowledge to customers

through the features, values and benefits of each product.

Handle returns/complaints graciously and effectively.
Work with co-associates to achieve Stores sales plan. Strive

Sales/Marketing
Associates

to achieve individual sales plan.

6.5 Remuneration Plan

Table BP 1.4 Remuneration plan
Number
Position

of
employees

Remuneration
Per month/

General manager
Operation manager
Production

1
1
4

Monthly salary (RM)

2,000.00
1,500.00
2,800.00

employees
Secretary
Sales manager
Finance manager
Purchase manager
Store assistant
Sales associates
Customer service
Security
TOTAL

1
1
1
1
1
4
1
1
17

1,000.00
1,500.00
1,500.00
1,500.00
1,000.00
2,800.00
800.00
500.00
16,900.00

Total
(RM)
2,000.00
1,500.00
2,800.00
1,000.00
1,500.00
1,500.00
1,500.00
1,000.00
2,800.00
800.00
500.00
16,900.00

Salary
The basic wage or salary will be paid in cash as designed in the employment
contract. The payment will be done at every month end to the workers. The amount
will be debited to their account on the 27 th of every month. Any increment of
18

decrement will be decided by the management. Also, salaries will be pad according
to the employees qualification and experience.
Working hours
Every employees in Style M Fashion Enterprise will work for nine hours daily.
Starting from 9.00am to 7.00pm from Mondays to Saturdays. Our lunch hour will be
from 12.30pm to 1.30pm.
Medical allowance / Maternity benefit
Medical allowance will be provide for every employees in an event of illness. The
maternity benefit is provided for the female employees as they are entitle to 60days
maternity leave. Allowance will not be given to a maternity employees with five
children.
Insurance/ Bonus
An insurance coverage will be provided for every employee in Style M. which include
the premises, buildings bought or rented apartment and also all means of
transportation. Bonus and compensation will be given to motivate the employee and
improve job satisfaction in an event of job performance.
Holidays /Annual leave
Every employees is entitle to have at least two days rest usually Saturday and
Sunday. Also, each employee will be given an annual leave of 16 days. In an event
of illness, the medical certificate has to be approved by a registered medical
practitioner. If this employee is hospitalized, he is entitled to 60 days sick leave and
also being paid his salary. But after the 60 days, his salary wont be paid.
6.6 List of office equipment and supplies
Style M Fashion Enterprise has bought office furniture, fittings and equipment as
listed in the table below.
Table BP 1.5 List of office equipment and supplies
No
.
1

Type of Equipment
Office furniture

Quantity
2 sets
19

Price (RM)
1,500.00

Total

cost

(RM)
1,500.00

2
4
5
6

Personal computer
Sign board
Air conditioner
Sewing supplies (threads,

7
8
9
10
11
12
13

buttons, gums etc.)

Iron
High speed sewing machine
Edging machine
Normal machine
Bag closer sewing machine
Shoe machine
Embroidery machine
TOTAL

4 units
1
3

1,200.00
1,000.00
1,500.00
3,000.00

4,800.00
1,000.00
1,500.00
3,000.00

2
2
1
1
1
1
1

125.00
2,000.00
1,500.00
300.00
700.00
500.00
2,000.00

250.00
2,000.00
1,500.00
300.00
700.00
500.00
2,000.00
19,050.00

6.7 Administrative budget

As indicated in the table above, the administrative expenses budget covers rental
deposit for three months, water, electricity and telephone bills, transportation costs.
Table BP 1.6 Administrative expenses
ADMINISTRATIVE EXPENDITURE
Fixed assets/Capital expenditure
RM
Furniture and fittings
19,050.00

RM
19,050.00

Working capital/ Monthly expenditure

Salaries
Rental
Electricity bill
Telephone bill
Water bill
Transportation
Office supplies

16,900.00
2,000.00
300.00
100.00
150.00
200.00
1,000.00
20,650.00

Other expenditures
Utilities deposit
Rental deposit

1,000.00
6,000.00
7,000.00
46,700.00

TOTAL
7.0 Marketing plan /Analysis
7.1 Description of products or services
20

Style M is the manufacturer of an upscale designers western clothings of high

quality materials like pure cotton, lace, sequins, chiffons, wool and silk for students
and working class consisting of both male and female.

Our raw materials are

sourced from within and outside the country to give our product a quality look. We
provide quality clothings and accessories having our customer satisfaction in minds.
Our business is established to fulfil the demand of the fashion design industry. We
conducted a thorough research on the proposed venture for two months prior to the
business commencement. We guarantee that our products are of good quality. If in
any instance the products have fail to meet our customer expectation or satisfy their
needs, we guarantee a full refund of the value or a replacement of the same value.
7.2 Target market
The target customer for Style M are students and working class of both male
and female from 18 and 40. Our target customers value uniqueness, convenience,
service and quality. Style M customers dreams of owning a day look by high end
designers such as Dior and Moschino. They scours the internet on fashion magazine
and styling ideas and inspiration. They want the best and affordable designers
according to their income.
The geographical, demographical and behavioural aspects of Style M customers are
as follows;
Geo/Demographic

Resides in Cyberjaya, Malaysia.

18-40 Year male and female.
College/university student and working class.
Average income RM 2,000 or more.

Psychographics

Highly socializes on fashion.

Read vogue, lucky and in-style.
Finds excitement in trying new things.
Highly reliant on modern technology like smartphones and laptops.

Buying patterns
Seeks unique yet versatile apparel and accessories.
21

Spends around RM 4,000 or more on apparel and accessories yearly.

Keeps up with the latest trend but does not wear them from head-to- toes.
Shops frequently.
Closet reflects a balance of quality and quantity.

7.3 Competitors (Strength and weaknesses)

It is very important for Style M Fashion Enterprise to identify its competitors.
Competitors refer to other businesses offering similar products and services. Based
on our market survey done earlier this year, we found few competitors among which
are Limkokwing fashion club, Gate way jeans and modern Muslim collection. Table
BP 1.7 shows the strengths and weaknesses of our competitors.
Table BP 1.7 Competitors strengths and weaknesses
Competitor
Limkokwing Fashion
Club Cyberjaya
Campus

Products
Women and men

Strengths
Unique apparel

Weaknesses
Limited products

apparel and

and accessories

offered.

accessories.

Inovasi 1-1, Jalan

Teknorat 1/1, 63000
Cyberjaya, Selangor,
Malaysia
Gateway jeans
G-26, Dpulze
shopping centre,
persiaran multimedia.
63000 Cyberjaya,
Selangor, Malaysia.

Men apparel and

Experienced

No embroidery

accessories

staffs, trendy

Services.

Modern Muslim

Women clothings

Customer friendly, Lack of

collection

and accessories

Popular among

uniqueness,

No 1-12, bloc A, jalan

stores.

Muslim

inconsistent

housewives.

quality.

clothings and
affordable prices.

GC 1, Glomac
Cyberjaya Cyber 12,
63000 Cyberjaya,
Selangor, Malaysia.

22

7.4 Market share

The target market for the business is formed mainly for student and working
class of both male and female. Presently, we are not able to identify our actual
market share for our business due to the uncertainty of our data. However, we have
taken our market share to be 10% of the number of population in the age of 18-40
years who school and work in the areas listed in table BP 1.8 below.
Table BP 1.8 Market share after entry of Style M Fashion Enterprise
No
1
2
3
4

Name
Limkokwing fashion club
Gateway jeans
Modern Muslim collection
Style M
Others
TOTAL

Share percentage
40%
25%
20%
10%
5%

Value
40,000.00
25,000.00
20,000.00
10,000.00
5,000.00
100,000.00

7.5 Sales forecast

Table BP 1.9 Sales forecast for three years

Month
January
February
March
April
May
June
July
August
September
October
November
December
TOTAL

Sales forecast for three conservative years

First year
Second year
Third year
47,000.00
48,000.00
46,900.00
47,000.00
48,000.00
46,900.00
47,000.00
48,000.00
46,900.00
47,000.00
48,000.00
46,900.00
47,000.00
48,000.00
46,900.00
47,000.00
48,000.00
46,900.00
47,000.00
48,000.00
46,900.00
47,000.00
48,000.00
46,900.00
47,000.00
48,000.00
46,900.00
47,000.00
48,000.00
46,900.00
47,000.00
48,000.00
46,900.00
47,000.00
48,000.00
515,900.00
564,000.00
576,000.00

7.6 Marketing strategy

23

Total sales
95,000.00
141,900.00
141,900.00
141,900.00
141,900.00
141,900.00
141,900.00
141,900.00
141,900.00
141,900.00
141,900.00
141,900.00
1,655,900

Products/services:
Style M will sell ready-to-wear casual and contemporary apparel and accessories
for women and men. In addition to the products, Style M will also offer a variety of
services. The Style M website will launch in accordance with the stores grand
opening and will also include some important information about the store and fashion
related content. There will be a style blog section which will be written by the brand
owner and will feature updates on the new release latest trends and also highlighting
Style M merchandise. The website will serve as an information ground to inform
visitors on the latest deals and happenings at Style M. A section for online shopping
will be added later on. This additions will be plan as soon as Style M has established
a substantial market presence and the financial and environmental conditions are
right in place.
The next service Style M will provide will take place on its employees. The sales
associates will be thought more as stylist who provide personal shopping services. In
regards to the products/service mix, Style M will fulfil their goal on meeting customer
need and wants at all times by educating customers about the recent fashion trends
and how to style properly.
Place:
Raw materials for the products will be source from Malaysia and oversees in order
to provide a unique products assortments. Style M will be located in the heart of
Cyberjaya. Our products will be neatly merchandise allowing room to move freely in
the store.
Price:
In 2008, the average gross margin for women and men apparel stores was 44.3%.
Based on this fact, Style M is somewhat of a specialty designers with unique
products and services. The gross margin goal will be set at 50%.therefore our
products in the store will sale at the price below RM 300.
Promotion/advertising:
The initial goal of Style M is to create awareness. These measures will show how
we intend to advertise the products thereby promoting marketing.

24

Exclusive fashion shows: The Company will attend and exhibit in large precollection of fashion shows in addition to annual industry fashion shows. Style M will
also exhibit the lines at many other fashion trade shows in order to introduce the
brand to potential buyers.
Word of mouth: Style M will rely heavily on word of mouth for the first year. Style M
associates will tell their friends and family about the brand. Another medium that will
be used for promotion is the used of social network like Facebook, twitter and
whatsapp. These are websites that are frequently used by Style M target customers
and are great ways to keep them updated about new products, store and events.
Marketing and public relations: Public relations will play a vital role in the
marketing mix since it is free and highly credible. The company will hire a
professional who will send press release about Style M grand opening to area
newspapers and magazines such as Sun, Business Times, Daily Express and Vision
KL. This is done with the hope that the newspapers will publish articles about the
introduction of Style M in their printed or online editions. Another interesting way to
promote Style M brand name will be through brand listings on information fashion
websites.
Finally, unique and attractive displays will be a crucial promotional tool to attract
passers-by. The windows will be rotated out frequently as new product is made and
will display the merchandise in the most appealing way possible. The prior fashion
knowledge of the owner has given the experience to create such displays. Minor
costs will be incurred through the purchase of display accessories.
7.7 Swot Analysis of Style M:
The SWOT analysis provides Style M with an opportunity to examine its internal
strengths and weaknesses the business must address. It also allows the opportunity
presented to Style M as well as potentials threats.
Strengths:
High quality apparel and accessories with large attention to detail in
design fabrics and manufacturing.
Unique shopping experience with exceptional customer service.
Experience and understanding of fashion industry.
Classic couture at an attainable price.
25

Weaknesses:
Lack of recognition of couture and brand.
Access to starting and operating capital.
Opportunities:
Changes in trends, for high fashion thereby generating sales.
Creating buzz and attracting customers by offering high end apparel for
affordable price.
Increasing sales opportunity beyond a 100 mile by offering alternative
sales of item from virtual online shopping.
Threats:
Unstable economic climate.
Rapid rise of consignment stores.

7.8 Marketing budget

The marketing budget is mentioned as part of our administrative expenditure as
shown in Table BP 1.6.
8.0 Operational plan
The operational plan is one of the most important factor to consider in any
business. Our goal is to ensure that our services are the best in quality so as to meet
up customers wants and needs. Hence, a systematic operational plan is formed to
ensure the smooth running of the business so that it can achieve its objectives.
8.1 Operational objectives
The main objectives of our operational plan is listed as follows.

To ensure that the business operation runs smoothly.

To increase customers satisfaction and fulfil their expectations toward our

ability of providing them with high quality products and appropriate services.
To achieve a consistent and stable production and services.
To make sure that our products and services meet the established standards

of the business.
To ensure a profitable and successful business venture.
26

8.2 Business hours

Our business is open for nine hours a day, starting from 9.00am to 7.00pm. Every
Mondays to Saturdays.
8.3 Operational layout
The operation layout of Style M Fashion Enterprise is shown below

STYLE M
OFFICE
SKETCH

MD/CEO
OFFICE
MEETING
ROOM

SHOW ROOM

WAITING
ROOM

SECURITY
POST

SHOW ROOM
WASH
ROOM

DESIGNING/STORE
ROOM
STAFF
OFFICE

PAYMENT
OFFICE

Figure BP 2.0 Operational layout of Style M Fashion Enterprise.

8.4 Operational process

27

CAR
PARK

The operational process of our business is illustrated by figure BP 2.1

Customer enter the premises

Customer shop in the show room

Sales/ marketing associates attend to the customer.

Customers leaves the premises after shopping.

Figure
BP 2.1
Process flow chart in Style M Fashion Enterprise.
8.5 Amenities and Facilities
The premise of Style M Fashion Enterprise has all the amenities which include
water, electric supply, air conditioning, and also telephone lines. The building is
situated in a shopping centre where all facilities are readily available.
8.6 Permanent asset and required items
The permanent and required items of Style M Fashion enterprises are shown in
table BP 2.2 below.
Table BP 2.2 List of permanent assets and required items
No

Type of Equipment

.
1
2
4
5
6

Office furniture
Personal computer
Sign board
Air conditioner
Sewing supplies (threads,

Quantity

Price (RM)

2 sets
4 units
1
3

1,500.00
1,200.00
1,000.00
1,500.00
3,000.00

28

Price (RM)
1,500.00
4,800.00
1,000.00
1,500.00
3,000.00

7
8
9
10
11
12
13

buttons, gums etc.)

Iron
High speed sewing machine
Edging machine
Normal machine
Bag closer sewing machine
Shoe machine
Embroidery machine
TOTAL

2
2
1
1
1
1
1

125.00
2,000.00
1,500.00
300.00
700.00
500.00
2,000.00

250.00
2,000.00
1,500.00
300.00
700.00
500.00
2,000.00
19,050.00

8.7 Estimation of purchases for three years

The estimation in table BP 2.3 covers the materials used to make apparel and
accessories.
Month

Year I

January
February
March
April
May
June
July
August
September
October
November
December
TOTAL

(RM)
3,000.00
3,000.00
3,000.00
3,000.00
3,000.00
3,000.00
3,000.00
3,000.00
3,000.00
3,000.00
3,000.00
3,000.00
36,000.00

Year II
(RM)
3,500.00
3,500.00
3,500.00
3,500.00
3,500.00
3,500.00
3,500.00
3,500.00
3,500.00
3,500.00
3,500.00
3,500.00
42,000.00

Year III
(RM)
4,000.00
4,000.00
4,000.00
4,000.00
4,000.00
4,000.00
4,000.00
4,000.00
4,000.00
4,000.00
4,000.00
4,000.00
48,000.00

Total
(RM)
10,500.00
10,500.00
10,500.00
10,500.00
10,500.00
10,500.00
10,500.00
10,500.00
10,500.00
10,500.00
10,500.00
10,500.00
126,000.00

8.8 List of raw materials, quantity and cost for a month

Table BP 2.4 Quantity and cost of raw materials per month.
Raw materials

Price per unit

Quantity

Total cost

Cotton
Sequins
Leather
Hides and skin
Threads
Buttons
Lace
Linen

(RM)
100.00
100.00
100.00
100.00
10.00
5.00
50.00
2.80

5 metre
5 metre
5 metre
5 metre
5 dozen
2 box
4 metre
10 metre

(RM)
500.00
500.00
500.00
500.00
50.00
10.00
200.00
32.00

29

Zip
Scissors
Silk
Rubber
TOTAL

1.60
10.00
100.00
143.00

3 dozen
5 pairs
5 metre
1 rolls

15.00
50.00
500.00
143.00
3,000.00

9.0 Financial plan

Financial plan is very vital for the success of Style M Fashion Enterprise because
it helps to

Determine the size of investment that is the project implementation cost.

To identify and props eth relevant sources of finance.
Ensure that the initial capital is sufficient.
Evaluate the viability of the project before actual investment is committed.
Guide the implementation of plans.

9.1 Project implementation cost schedule and sources of finance.

Table BP 2.5 Project implementation cost
Requirement

Cost
(RM)

Fixed assets
Office furniture
Personal computer
Sign board
Air conditioner
Sewing supplies (threads, buttons, gums etc.)
Iron
High speed sewing machine
Edging machine
Normal machine
Bag closer sewing machine
Shoe machine
Embroidery machine
SUBTOTAL

(RM)

1,500.00
4,800.00
1,000.00
1,500.00
3,000.00
250.00
2,000.00
1,500.00
300.00
700.00
500.00
2,000.00
19,050.0
0

Working capital
Administrative

20,650.00

Other Expenditures
Utilities deposit
Rental deposit

1,000.00
6,000.00

20,650.0
0

7,000.00
TOTAL

46,700.0
30

9.2 Sources of finance

The breakdown of finance sources is shown in the table 2.6 below. Total financing
cost will be obtain from the owners capital amounting to RM 20,000.00, whereas
the balance of RM 92,000.00 will be obtain from May bank.
Table BP 2.6 Schedule of financial sources
Style M Fashion Enterprise
Schedule of Financial sources as at year 2016
Sources

Amount (RM)

Equity / own contribution

Cash

20,000.00

Assets (land and buildings)

External sources
Hire purchase
Bank loan

92,000.00

Others

0.00

TOTAL

112,000.00

9.3 Pro forma cash flow statement for three consecutive years
Table BP 2.7 Pro forma cash flow statement for three consecutive years
PRO FORMA CASH FLOW STATEMENT FOR THREE YEARS
Year 1

Year 2

Year 3

564,000.00

576,000.00

564,000.00

576,000.00

CASH INFLOW
Owners capital (cash)

20,000.00

Cash sales

515,900.00

Credit collection
May Bank loan payment

92,000.00

TOTAL CASH INFLOWS

627,900.00

CASH PAYMENT
Administrative expenses
Fixed asset

25,550.00
31

Salaries

16,900.00

17,500.00

17,900.00

Rental

2,000.00

2,000.00

2,400.00

Electricity bill

300.00

400.00

500.00

Telephone bill

100.00

200.00

250.00

Water bill

150.00

200.00

300.00

Transportation

200.00

500.00

400.00

Office supplies

1,000.00

3,500.00

4,500.00

36,000.00

42,000.00

48,000.00

Operational expenses
Sewing materials/ raw materials
Marketing expense
Promotion

5,000.00

Deposit
Utilities deposit

1,000.00

rental deposit

6,000.00

Loan repayment
Principal

32,000.00

32,000.00

32,000.00

Interest

5,000.00

5,000.00

5,000.00

TOTAL CASH OUTFLOW

131,200.00

103,300.00

111,250.00

EXCESS/(DEFICIT)

496,700.00

460,700.00

464,750.00

496,700.00

460,700.00

464,750.00

OPENING BALANCE
FINAL BALANCE

9.4 Pro forma income statement

Table 2.8 BP Pro forma income statement of Style M Fashion Enterprise
STYLE M FASHION ENTERPRISE
PRO FORMA INCOME STATEMENT
FOR THE YEAR 31 DECEMBER 2016
RM
Sales
Less: Cost of sales (goods sold)
Opening stock

Purchases

36,000.00
32

RM
515,900.00

Good available for sale

36,000.00

Less: Closing stock

36,000.00

Gross profit
Less: Operating expenses

479,900.00

Administrative expenditure
Salaries

16,900.00

Rental

2,000.00

Electricity bill

300.00

Telephone bill
Water bill

100.00
150.00

Transportation

200.00

Office supplies

1,000.00

Marketing expenditure
Promotion

5,000.00

Financial expenditure
Diminishment

32,000.00

Payment interest

5,000.00

TOTAL OPERATING PROFIT

TOTAL NET PROFIT/LOSS BEFORE TAX

62,650.00
417,250.00

9.5 Pro forma balance sheet statement for Style M fashion enterprise.
Table 2.9 Pro forma balance sheet statement of Style M Fashion Enterprise.
STYLE M FASHION ENTERPRISE
PRO FORMA BALANCE SHEET STATEMENT
FOR THE YEAR END 31 DECEMBER 2016
ASSETS
Fixed Assets (Non-current Asset)
Office furniture

1,500.00

Personal computer

4,800.00

Sign board

1,000.00

33

Air conditioner

1,500.00

Iron

250.00

High speed sewing machine

2,000.00

Edging machine

1,500.00

Normal machine

300.00

Bag closer sewing machine

700.00

Shoe machine

500.00

Embroidery machine

2,000.00
19,050.00

Current Assets
Cash balance

496,700.00

Stock of finish goods

6,500.00
503,200.00

Other assets
Deposits

7,000

TOTAL ASSETS

529,250.00

Owners equity
Capital

20,000.00

Accumulated profit

417,250.00
437,250.00

Long term liabilities

Term loan

92,000.00

Current liabilities
account payable
Revenue
TOTAL EQUITY AND LIABILITIES

529,250.00

10.0 Summary and Conclusion

Based on the planning and projection of the income and expenses, our
company is very confident that this venture will create a satisfactory return on the
investment starting from the second year. This is because for the first year, we are
estimating to incur a very minimal loss as a result of the conservative estimated of
34

sales and expenses based on the fact that the business just started its operation.
The business will continually perform the business strategy, especially in the
marketing department to create awareness and brand recognition. This will enable
us to establish a loyal customer base in the second year of business operation.
We hope this application of finance will be granted due consideration from
MAYBANK for us to start the venture. We also look forward to become part of the
successful Malayan Banking Berhad (MAYBANK) in Malaysia.

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36