Business Plan

H@C

H@C FLASK
Bangsar,Kuala Lumpur

Business Phone: 03-7960 3516

Business Email: www.H@C wellness@gmail.com

Website URL: www.H@C wellness.com

Social Media: H@C(Instagram and Facebook)

Date: 03.12.2018
 Table of Contents
Table of Contents .................................................................................................................................... 1
Executive Summary................................................................................................................................. 2
Business Overview .................................................................................................................................. 3
Company information ......................................................................................................................... 3
Vision & Mission Statement ................................................................................................................ 3
Core Values ......................................................................................................................................... 3
Business Goals..................................................................................................................................... 3
Ownership Structure ........................................................................................................................... 3
Product(s) / Service(s) Description ......................................................................................................... 4
Product(s) / Service(s) Idea ................................................................................................................. 4
Problem Solved By Product(s) / Service(s) .......................................................................................... 4
Unique Selling Proposition .................................................................................................................. 4
Target Customers ................................................................................................................................ 4
Marketing Plan ........................................................................................................................................ 5
Market & Industry ............................................................................................................................... 5
SWOT Analysis..................................................................................................................................... 5
Pricing Strategy ................................................................................................................................... 5
Promotional Strategies ....................................................................................................................... 6
Operational Plan ..................................................................................................................................... 7
Distribution Channel / Platform .......................................................................................................... 7
Product(s) / Service(s) Development .................................................................................................. 7
Human Resource Management .............................................................................................................. 8
Owner(s) and Key Employees ............................................................................................................. 8
Organization Chart .............................................................................................................................. 8
Financial Plan .......................................................................................................................................... 9
Projected Income Statement .............................................................................................................. 9
Projected Cash Flow Statement .......................................................................................................... 9
Projected Balance Sheet ................................................................................................................... 10
Appendix .......................................................................................................................................... 11-13

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 Executive Summary
H @ C (Hot @ Cold) flask is determined to become a daily necessity for healthy life style, a place to
dream of as you try to escape the daily stresses of life by having your favourite drink in selected
tempreture all in one. With the growing demand for high-quality thermos flask and great service,
H@C will capitalize on its proximity to the University of Malaya campus to build a core group of
repeat customers. H@C will offer its customers the best prepared thermos flask in the area that will
be complimented with instant coffee or tea packets as well as free ice cubes that its patrons can
have their drink to enjoy their visit. H@C uses a system that is new to the beverage and food service
industry to provide hot and cold beverages in a convenient and time-efficient way

One of the most attractive aspects is that the business is projected to attain a strong cash position
and achieve profitability in the first year of operation. Due to a large need for these products and
services, and a lack of direct competition, our projection of quick profitability is attainable.

Normally a hot substance becomes cold by loosing its heat to the surroundings. Similarly a cold
substance becomes hot by absorbing heat from the surroundings. The function of the vaccum flask is
to prevent the flow of heat to and from the bottle. We know that heat can flow from one place to
another by three processes: conduction, convection and radiation. The thermos flask prevents the
flow of heat by any of these processes. The flask is made up of glass which is a bad conductor of heat.
Hence heat does not flow by conduction. Since there is vacuum between the walls of the bottle, flow
of heat by convection is also ruled out. Due to the silvering of the walls heat is not lost by radiation.
As a result, hot things kept in a vaccum flask, do not become cold and cold ones do not become hot
for a long time. As we H@C designed with latest technology and special effects, this flask able to
store Hot and Cold water in the same time. This is because a separate wall inserted in the flask, so
we can store the liquid in 2 different temprature at the same time in the same flask. These bpa free
flasks feature vacuum insulation and are a storage solution with the desgin quality expected with
SIGG. They will make sure you can your coffee and tea to go are perfect and will keep drink hotter
and colder for longer.

Our products comes in with 2 litre capacity, divided into 2 sections (1 litre for cold beverages, same
goes to hot beverages as well.) It’s a big sized flask which will be convenient for the users and easy to
clean. As the flask coated with special stainless steel, we can guarantee the flask is safe for everyday
use and of course corrosion free.

In addition to providing a quality product to ensure customer awareness and loyalty, as well as good
publicity coverage and media support, we will be donating up to 7.5% of revenue to local charities
based upon customer choices.

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 Business Overview
Company information
H@C company began in Kuala Lumpur founded by three owners, all of whom hold director positions.
The H2C headquarters which will be situated at Bangsar, Kuala Lumpur. We have also technical
support team which consist of 20 employees will guide customers on online purchasing including
other types of services as well. As to create a wide network marketing, continous updates are posted
in Instagram (H@C Flask) same goes to facebook and a specific website also created to provide brief
info regarding our product values.

Vision & Mission Statement

Vission

Provide the highest quality products and services that consistently meet customer’s expectations
and our competitors capablities while continuosly improving our manufacturing processes.

Mission

Product Mission - Provide customers the finest quality beverage in the most efficient time.

Community Mission - Provide community support through customer involvement.

Economic Mission - Operate and grow at a profitable rate through sound economic decisions.

Core Values
The greatest locations - visibility, high traffic pattern, convenient access.

The friendliest employees - cheerful, skilled, professional, articulate.

The finest reputation - word-of-mouth advertising, promotion of our community mission of

charitable giving.

The attractive designs- Store design that will be both visually attractive to customers, and designed
for fast and efficient operations

Business Goals
 Increase profit margin.
 Increase efficiency.
 Capture a bigger market share.
 Provide better customer service.
 Improve employee training

Ownership Structure
H@C privately held corporation. The three founders comprise all of the ownership.

Hemameera - 40 percent.

Nesamala - 30 percent.

Elil Arasi - 30 percent.

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 Product(s) / Service(s) Description
Product(s) / Service(s) Idea
Selected by Live Beautiful Magazine as Best For The Crave. Our H@C Flask is specially designed to
help to maintain the tempreture of two different drink wheter hot or cold, all in one go. This is great
for all drink types. H@C is an insulating storage vessel that greatly lengthens the time over which its
contents remain hotter or cooler than the flask's surroundings.

Problem Solved By Product(s) / Service(s)

As an example person A and B is a couple. Person A wanted to drink an iced coffee, Person B was
having headache, so he prefer drinking a hot tea. Conflict arise when two of them wanted store their
beverage in the same flask as they just got one. Two different demand contradict with one
supply(the flask). If they had H@C flask, these two different beverages can be stored in one. So, no
issues arises with the presence of H@C.

Unique Selling Proposition

H@C online store, and there is nothing especially unique about selling flask online. However, selling
point is unique: free returns. There is no penalty whatsoever to returning a flask that customer don’t
want, a major convenience to customers. Moreover our unique selling point includes that for every
customer purchases, the company donates to a child in need. Campaigns also made unique
propositions to customers and convinced them to switch brands.

Target Customers
“Cheers Buddy” is our slogan, it is a perfect example of a compelling slogan. In very few words, H@C
was able to convey the message that it guarantees of combining two different beverage can be
stored together. Different people who shares different perspectives in one house are free to make
decision by having this flask. Overall, our product designed to be sold to adult peoples. Adults will
make up our target market. Health conscious person, a drinker will be our secondary targeted
customer as water is basic need for them and no one wants to get dehydrated. A hot water flask is a
must to those who having babies as they have to feed babies. So promoting our product near to
maternity centres and housing areas will be a plus to attract customers.

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 Marketing Plan
Market & Industry
The buying patterns for customers is based on convenience, cost, and quality. Some customers are
willing to pay more for the convenience of individual sized servings. We anticipate that so far our
largest group of customers will be those who order through the online. These customers will be
targeted through an advertising campaign in magazines and newsletters that have an older (>55)
audience who regularly need medication and are aware in advance of their needs.
SWOT Analysis
The point of a SWOT analysis is to help develop a strong business strategy by making sure you’ve
considered all of your business’s strengths and weaknesses, as well as the opportunities and threats
it faces in the marketplace.

Pricing Strategy
The going rate per item is RM 40. This price is low enough to ensure rapid growth in the market yet
still provide a very healthy profit, given that we have no direct competition. This is possible because
we are on the front end of the industry growth in this region.

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Promotion Strategies
Our promotional strategy will be two-fold: first phase promotion will focus on before, during, and six
months following our opening; the second phase of promotion will deal with the long term. The
purpose of the first phase is to assist with rapid market entry to ensure early and sustained
profitability. The purpose of the second phase is to ensure long-term growth and help propel us
toward achieving our goal of expanding state wide and across Kuala Lumpur

First Phase Promotions

Publicity: We will send news releases to all of the major newspapers in Kuala Lumpur.. We will
similarly seek publicity in the form of news stories from local radio and television stations.

Advertising: We will utilize direct mail and face-to-face promotional strategies to raise awareness
about our products and services in the target markets. Newspaper advertising may also be used.
Radio and television ads are not certain, we will evaluate their effectiveness before further
implementation.

Internet: We will have a content heavy website geared toward educating potential customers about
the benefits of our products and services. All literature, business cards, etc. will include our website
and e-mail address information.

Second Phase Promotions

Publicity: As the business grows and expands we will continue to seek publicity through news media
to tout our successes.

Advertising: We will continue to make face-to-face contact with customers and potential customers.
Mail-outs will be done again within a few months of start up. The second round of mail outs will be
updated to reflect the benefits provided to customers thus far. Such mail-outs will be sent
periodically.

Internet: We will continue to have a comprehensive website. The website will be updated to provide
responses to frequently asked questions. After the first six months, and certainly after the first year,
we will evaluate the viability of having target clients advertise on our site, and conversely, we will
evaluate viability of advertising on our target clients websites (if applicable).

Alliances: We will continue to seek mutually beneficial and complementary alliances with
manufacturers where applicable.

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 Operational Plan
Distribution Channel / Platform

Indirect Distribution
Indirect distribution occurs when there are middlemen or intermediaries within the distribution
channel. Example, the intermediaries would be the H@C customer service team who in charge of
online orders, the product maker, and the retailer. The larger the number of intermediaries within
the channel, the higher the price is likely to be for the final customer. This is because of the value
adding that occurs at each step within the structure.

Product(s) / Service(s) Development

H@C new company that provides expertise in search marketing solutions for businesses worldwide,
including website promotion, online advertising, and search engine optimization techniques to
improve its clients' positioning in search engines. We cater to the higher education market, including
colleges, universities, and professional educational institutions

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 Human Resource Management
Owner(s) and Key Employees
As founder and president H@C Miss Hemameera Vellasamy will be responsible for the entire
operation. Some of her duties will include overseeing the areas held by the other company
executives, as well as the output produced by other employees. She will be in charge of the
company's public relations. She will also have the job of hiring dedicated people and ensuring
employees put their best efforts into the production of products. She will have the lead role in
making decisions that concern the well being of H@C Flask.

Miss Nesamala has an important job as operations manager. She job will be crucial in the growth of
the company. she will ensure that day-to-day operations are conducted such that materials are
received, methods and processes are standardized, and production is maximized to ensure uniform
production of compost materials. This duty will entail establishing a good working relationship with
production line employees because without products will not be produced.

Miss Elil Arasi will be responsible for financial management operations including accounts payable,
accounts receivables, and bookkeeping.

Organization Chart

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 Financial Plan
Our financial plan is based on receiving several loans to purchase/fabricate the production
equipment, provide initial operating capital, and establish the customer base.We will achieve
profitability early in the first year and due to the expected high growth rate, we will realize strong
profits on sales by year three.

Projected Income Statement

We are expecting some dramatic growth in the next three years, reaching healthy sales and Gross
Profit Margin by the end of the first year.

Projected Cash Flow Statement

Cash flow will have to be carefully monitored, as in any business.. After the initial investment and
start-up costs are covered, the business will become relatively self-sustaining. With the exception of
seasonal dips, which H@C has attempted to account for, through changes in the items.Assuming an
initial investment and financing, which would include operating capital, we anticipates no cash flow
shortfalls for the first year or beyond.

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Projected Balance Sheet
With the present financial projections, H@C expects to build a company with strong profit potential,
and a solid balance sheet that will be asset heavy and flush with cash at the end of the third year.
PRO FORMA BALANCE SHEET
YEAR 1 YEAR 2 YEAR 3
RM RM RM
Assets
Current Assets

Cash 30,000 91,674 528,315

Inventory 20,000 134,826 328,252
Other Current 0 0 0
Assets

TOTAL CURRENT 50,000 226,499 856,567

ASSETS
Long-term Assets

Long-term Assets 300,000 752,950 2,109,943

Accumulated 22,900 114,695 310,790
Depreciation
TOTAL LONG- 322,900 638,255 1,799,153
TERM ASSETS
TOTAL ASSETS 372,900 864,754 2,655,720
Liabilities and Year 1 Year 2 Year 3
Capital

Current Liabilities

Accounts Payable 50,000 106,240 248,402

Current Borrowing 7,500 5,500 500
Other Current 0 0 0
Liabilities
SUBTOTAL 57,000 111,740 248,902
CURRENT
LIABILITIES
Long-term 200,000 513,364 1,193,356
Liabilities
TOTAL 257,000 625,104 1,442,258
LIABILITIES

Paid-in Capital 225,270 225,270 225,270

Retained Earnings -173,770 -202,642 14,381

Earnings -28,872 217,023 973,812
TOTAL CAPITAL 22,628 239,651 1,213,463

TOTAL 366,246 864,754 2,655,720

LIABILITIES AND
CAPITAL
Net Worth 22,628 239,651 1,213,463

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 Appendix
Sales Forecast

Personnel Plan

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 Pro forma profit and loss
PRO FORM A PROFIT AND LOSS
M ONTH 1 M ONTH 2 M ONTH 3 M ONTH 4 M ONTH 5 M ONTH 6 M ONTH 7 M ONTH 8 M ONTH 9 M ONTH 10 M ONTH 11 M ONTH 12

RM RM RM RM RM RM RM RM RM RM RM RM
Sales 17,500 21,000 22,500 26,000 32,500 40,000 47,500 52,375 56,450 65,750 72,500 85,000
Direct Cost of Sales 1,500 1,500 2,000 2,000 2,500 2,500 3,000 3,000 3,500 3,500 4,000 4,000
Other Costs of Sales 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL COST OF SALES 1,500 1,500 2,000 2,000 2,500 2,500 $3,000 3,000 3,500 3,500 4,000 4,000

Gross Margin 16,000 19,500 20,500 24,000 30,000 37,500 44,500 49,375 52,950 62,250 68,500 81,000
Gross Margin % 91.43% 92.86% 91.11% 92.31% 92.31% 93.75% 93.68% 94.27% 93.80% 94.68% 94.48% 95.29%
Expenses
Payroll 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500
Marketing/Promotion 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100
Depreciation 600 600 600 600 600 600 600 600 600 600 600 600
Rent 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Utilities 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100
Insurance 450 450 450 450 450 450 450 450 450 450 450 450
Leased Equipment 0% 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300
Payroll Taxes 15% 0 0 0 0 0 0 0 0 0 0 0 0
Other 0 0 0 0 0 0 0 0 0 0 0 0
Total Operating Expenses 25,050 25,050 25,050 25,050 25,050 25,050 25,050 25,050 25,050 25,050 25,050 25,050

Profit Before Interest and -9,050 -5,550 -4,550 -1,050 4,950 12,450 19,450 24,325 27,900 37,200 43,450 55,950
Taxes
EBITDA -8,450 -4,950 -3,950 -450 5,550 13,050 20,050 24,925 28,500 37,800 44,050 56,550
Interest Expense 916 909 903 896 889 882 875 868 861 854 847 750
Taxes Incurred -2,492 -1,615 -1,363 -486 1,015 2,892 4,644 5,864 6,760 9,087 10,651 13,800
Net Profit -7,475 -4,845 -4,089 -1,459 $3,046 8,676 13,931 17,593 20,279 27,260 31,952 41,400
Net Profit/Sales -42.71% -23.07% -18.18% -5.61% 9.37% 21.69% 29.33% 33.59% 35.92% 41.46% 44.07% 48.71%

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Pro Forma Cash Flow
PRO FORM A CASH FLOW
M ON TH 1 M ON TH 2 M ON TH 3 M ON TH 4 M ON TH 5 M ON TH 6 M ON TH 7 M ON TH 8 M ON TH 9 M ON TH 10 M ON TH 11 M ON TH 12

RM RM RM RM RM RM RM RM RM RM RM RM
Cash Received
Cash from Operations

Cash Sales 7,000 8,400 9,000 10,400 13,000 16,000 19,000 20,950 22,580 26,300 29,000 34,000
Cash from Receivables 0 350 10,570 12,630 13,570 15,730 19,650 24,150 28,598 31,507 34,056 39,585
SUBTOTAL CASH FROM 7,000 8,750 19,570 23,030 26,570 31,730 38,650 45,100 51,178 57,807 63,056 73,585
OPERATION S
Additional Cash Received

Sales Tax, VAT, HST/GST 0.00% 0 0 0 0 0 0 0 0 0 0 0 0

Received
New Current Borrowing 36,000 0 0 0 0 0 0 0 0 0 0 0
New Other Liabilities 0 0 0 0 0 0 0 0 0 0 0 0
(interest-free)
New Long-term Liabilities 0 0 0 0 0 0 0 0 0 0 0 0
Sales of Other Current 0 0 0 0 0 0 0 0 0 0 0 0
Assets
Sales of Long-term Assets 0 0 0 0 0 0 0 0 0 0 0 0
New Investment Received 0 0 0 0 0 0 0 0 0 0 0 0

SUBTOTAL CASH 43,000 8,750 19,570 23,030 26,570 31,730 38,650 45,100 51,178 57,807 63,056 73,585
RECEIVED
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Expenditures from
Operations

Cash Spending 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500
Bill Payments 396 11,904 12,769 13,518 14,426 16,416 18,299 20,509 21,728 23,148 25,459 27,549
SUBTOTAL SPEN T ON 12,896 24,404 25,269 26,018 26,926 28,916 30,799 33,009 34,228 35,648 37,959 40,049
OPERATION S
Additional Cash Spent

Sales Tax, VAT, HST/GST 0 0 0 0 0 0 0 0 0 0 0 0

Paid Out
Principal Repayment of 0 0 0 0 0 0 0 0 0 0 0 36,000
Current Borrowing
Other Liabilities Principal 0 0 0 0 0 0 0 0 0 0 0 0
Repayment
Long-term Liabilities 833 833 833 833 833 833 833 833 833 833 833 833
Principal Repayment
Purchase Other Current 0 0 0 0 0 0 0 0 0 0 0 0
Assets
Purchase Long-term 800 800 800 800 800 800 800 800 800 800 800 800
Assets
Dividends 0 0 0 0 0 0 0 0 0 0 0 0
SUBTOTAL CASH 14,529 26,037 26,902 27,651 28,559 30,549 32,432 34,642 35,861 37,281 39,592 77,686
SPEN T
Net Cash Flow 28,471 -17,287 7,332) -4,621 -1,989 1,181 6,218 10,458 15,316 20,526 23,464 -4,101
Cash Balance 38,471 21,184 13,852 9,231 7,242 8,423 14,641 25,099 40,415 60,941 84,405 80,303

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