BUSINESS PLAN ENT 300

5/7/2020

MUHAMMAD AKMAL BASYIR BIN LAYNIN

2018268788
AHMAD NUR MISUARI IBRAHIM

EC1104C
Contents
1 Introduction ....................................................................................................................................................5
1.1 Our business name: ................................................................................................................................5
1.2 Nature of business ..................................................................................................................................5
1.3 Industry profile.......................................................................................................................................5
1.4 Location of building ...............................................................................................................................6
1.5 Date of Business Commencement .........................................................................................................7
1.6 Factors in Selecting Proposed Business ................................................................................................7
1.7 Future Prospect of the Business ............................................................................................................7
2 Purpose ............................................................................................................................................................9
2.1 Maintaining Focus .................................................................................................................................9
2.2 Raise Finance ........................................................................................................................................10
2.3 Manage your Business Effectively ......................................................................................................10
3 Business Background ...................................................................................................................................12
3.1 Vision & Mission ..................................................................................................................................12
3.2 Organizational Chart ...........................................................................................................................14
3.3 Logo & Motto .......................................................................................................................................15
4 Background of Partnership ........................................................................................................................17
5 Location of Business.....................................................................................................................................23
5.1 Physical Location of the Project .........................................................................................................23
5.2 Building .................................................................................................................................................23
5.3 Basic Amenities.....................................................................................................................................23
6 Marketing plan .............................................................................................................................................25
6.1 Introduction ..........................................................................................................................................25
6.2 Marketing Objective ............................................................................................................................25
6.3 Determining Products or Service ........................................................................................................26
6.4 Marketability of a Product or Service ................................................................................................28
6.5 Target Market ......................................................................................................................................30
6.6 Market Trend and Market Size ..........................................................................................................31
6.7 Sales Forecast .......................................................................................................................................34
6.8 Marketing Strategy ..............................................................................................................................35
6.9 Planning for marketing Personnel ......................................................................................................40
6.10 Marketing Budget ................................................................................................................................40
7 Operational plan...........................................................................................................................................42
7.1 Introduction ..........................................................................................................................................42
7.2 Process Planning...................................................................................................................................43
7.3 Operational Layout ..............................................................................................................................46
 7.4 Production Planning ............................................................................................................................47
7.5 Material Planning.................................................................................................................................47
7.6 Machine and Equipment Machine......................................................................................................48
7.7 Manpower Planning .............................................................................................................................49
7.8 Overhead Requirement .......................................................................................................................52
7.9 Location Plan ........................................................................................................................................52
7.10 Business and Operation Hours............................................................................................................53
7.11 License, Permits & Regulations Required .........................................................................................54
7.12 Implementation Schedule ....................................................................................................................54
7.13 Operation Budget .................................................................................................................................55
8 Administration Plan .....................................................................................................................................57
8.1 Introduction ..........................................................................................................................................57
8.2 Organization by Chart .........................................................................................................................60
8.3 Organizational Structure by Function ...............................................................................................61
8.4 Manpower Planning .............................................................................................................................62
8.5 Schedule of Task & Responsibility .....................................................................................................63
8.6 Schedule of Remuneration ..................................................................................................................65
8.7 List of Office Equipment .....................................................................................................................65
8.8 List of Office Furniture & Fittings .....................................................................................................66
8.9 Administration Expenses .....................................................................................................................66
8.10 Administration Budget ........................................................................................................................67
9 Financial Plan ...............................................................................................................................................70
9.1 Introduction ..........................................................................................................................................70
9.2 Administration Budget ........................................................................................................................71
9.3 Marketing Budget ................................................................................................................................72
9.4 Operation Budget .................................................................................................................................73
9.5 Useful Life of Fixed Assets ..................................................................................................................74
9.6 Sales & Purchases Budget ...................................................................................................................75
9.7 Sales Collection .....................................................................................................................................76
9.8 Payments to Suppliers..........................................................................................................................76
9.9 Value of Stocks for 3 Years .................................................................................................................76
9.10 Project Implementation Cost & Sources of Finance .........................................................................77
9.11 Depreciation of Fixed Assets ...............................................................................................................78
9.12 Loan Repayment Schedule ..................................................................................................................81
9.13 Hire-Purchase Repayment Schedule ..................................................................................................81
9.14 Pro Forma Cash Flow Statemen .......................................................................................................82
9.15 Pro Forma Balance ..............................................................................................................................83
 9.16 Manufacturing Cost .............................................................................................................................84
9.17 Pro Forma Balance Sheet ....................................................................................................................85
9.18 Financial Ratios ....................................................................................................................................86
9.19 Forecast Performance ..........................................................................................................................87
10 Conclusion.................................................................................................................................................89
Introduction
1 Introduction
1.1 Our business name:
Hope’s Venture

1.2 Nature of business

Hope’s Venture is a new and small business which purposely establish to help and
create and innovative for all citizen especially in Malaysia. This company is a company who
have a vision to come out with a bold idea where it improvises the product to give such a big
impact to community for the future living. Other than that, this company will like to expand
their product for all people around the world to take an advantage and satisfied their customer.

1.3 Industry profile

The bag industry could be a wide and stable industry where the stress are increasing
constantly thanks to the rise in population. This industry is one amongst the foremost influential
industries to community people in Malaysia.

Malaysia as a modern country become an interest country to live day by day. Tourist
also like to come to our country and make population in our country become increase. This can
lead an advantage to increasing our sales in the company.

The production of a product like bag and purse has a big potential to grow up because
people nowadays make these products implement as a fashion in their lifestyle. Any gender will
suit their self with their preferred style. So, there is no doubt that our company will have a
bright future if the plan and financial in the right place.
1.4 Location of building

Our company which is Hope’s Venture will have a first building at Johor Bahru which
is will become our headquarters. This is because the material and sources for our product can
be found area our headquarters. People also easily to find the building with the maps.

Figure 1.2: Store of Hope’s Venture

1.5 Date of Business Commencement
17th January 2020

1.6 Factors in Selecting Proposed Business

The first factor of this company to gives the best product to community in Malaysia.
Our company, Hope’s Venture, chose to produce a bag’s company it is an important thing to
nowadays usage. They need to bring their belonging and keep their important thing safely. But,
some people tend to about their bag and purse because of many causes. In other hand, they
will take a many time and sometime cannot found it at all to search it. So, to counter this
problem we innovated the bag and purse with a tracker for the user to search it if they forget
their belongings.

Furthermore, bag and purse is also a product that easy to buy from any suppliers with
lower prices and whole sale. It also long-lasting that may be depleted to 1 year with a decent
care. Since our products comes from varies sizes, users can choose which one is their
preferences which implies it's suitable for all people with all ages. Our product also has
variety of style that will suit any gender

So, by creating innovative bag we hope that people will take our product as an
innovative product that will give an impact in their life.

1.7 Future Prospect of the Business

In the future, we want our company become well-known company as a company that
serve a satisfied product. The company also hope to become a rival for other famous brand
like Levi’s and Timberland. This will become a target for us to become more successful in
the future.
Purpose
2 Purpose
A business plan is an effective means of defining your goals and the steps needed to
reach them. It spells out your purpose, vision and means of operation. It also serves as your
company’s resume, explaining your objectives to investors, partners, employees and vendors.

A good business plan clearly states the amount of capital you need to make the
company work and where the investment is coming from. It clarifies the means by which you
will pay back borrowed money, your sales forecast, spending budget, cash flow and how you
will invest profits.

A well-developed business plan also documents actions the company will follow in case
the projections turn out to be too optimistic. Scenarios should be developed to identify potential
obstacles, including possible changes in the market, so that the company will be prepared to
make operational decisions that remain in line with the overall business strategy.

2.1 Maintaining Focus

As an entrepreneur, where should your efforts and concentrations be centred on?

It’s a common issue. The early days of starting out can be very chaotic. There’s so much
to set up, think about, implement and develop. It’s an emotional roller coaster of mass
excitement and sharp shots of anxiety. Amid all this and with an ever mounting in-tray
of to do’s, our company can fast lose track of what’s important.

Hope’s Venture need exactly what to organisation is today and then intends to
become tomorrow. This coherence concerning the purpose of your business and
direction in which you’re heading is invaluable. Doing this means our company
understand what needs to be implemented to move forward.
2.2 Raise Finance

The likelihood is that to support Hope’s Venture growth would require an

injection of funding. That's unless our company have got an especially cash generative
business model. More often than not you almost certainly won’t have enough customers
and thus free income to finance the following opportunity. Our company will
have a capital requirement and thus need investment beyond the reach of your business.

Hope’s Venture likely need to approach potential sources of finance and they’ll want to
assess the your income statements/profit and loss statements, and business plan. If our
company still at concept stage, or haven’t begun making sales, then their decision will
rest solely on the strength and our business plan.

2.3 Manage your Business Effectively

The usefulness of a cashflow forecast doesn’t end there though. Managing

the cash position, as our company may have already gathered, is fundamental to the
long term future in our business. There’s a common quote that “most businesses fail
because they run out of money”. This means they’re no longer able to pay their debts
when they’re due.

Hope’s Venture should reference the cashflow projections in our business plan
regularly. When we invest in our business, there will be significant out flows of money
before any cash comes in. The timing investments thus needs to be considered against
our projections and statements. Consider trading patterns, seasonal variations and the
likely impact on cash flows.
Business Background
3 Business Background
Name of the Business Hope’s Venture
Business Address
Kawasan Perindustrian Tebrau 4,
Johor Bahru , Johor
Website Hopeventure.com.my
E- mail hopeventure@gmail.com
Telephone Number 05 - 553 4787
Fax Number 05 - 553 4796
Main Activity Bag’ Company
Date of Commencement 17 January 2020
Date of Registration 30 November 2019
Registration Number 156647-k
Name of Bank Maybank
Bank Account Number 162218764933
3.1 Vision & Mission

3.1.1 Vision

• To encourage people about our product and the advantage of our product.
• To become a well-known company in the future.
• To challenge oversea brands out there.

3.1.2 Mission

To become a huge and successful company that bring Malaysian product the
world in the future.
 General
Manager

Administrative Marketing Finance Operatinal

Manager Manager Manager Manager

1. Sales
2. Promoter
Workers
1. Operational Supervisor
2. Technician
3. Sewer
4. Quality Inspection
3.2 Organizational Chart

General
Manager

Administrative Marketing Finance Operational

Manager Manager Manager Manager
3.3 Logo & Motto
3.3.1 Logo

Our company’s name “ Hope’s Venture” is to show our hope to make the
customer satisfied. This logo is based on our style of product which simple but powerful.
The anchor symbol represent bold and brave. We want other people look our brand as a
competitor that can challenge them. “Futuristic” means the innovative that we bring in
our product that will be shock other brand.

3.3.2 Motto

“Fear for future”

This motto represent Hope’s Venture to take a big risk for a future purpose. People may
afraid and doubt about our product at first. But, they will find that the product from our
company will become an advantage to them and very helpful in their daily life. So, “Fear
for future” is really meant for our team to growth and become a successful company.
Background Partnership
4 Background of Partnership

Muhammad Akmal Basyir bin Laynin

No.54 Jalan Kristal 7/65, 40000, Shah Alam,

Address Selangor
Age 20
Gender Male
I/C number 00224-10-2031
Birth 24/2/2000
Status Single
No. Phone 019 676 4940
Email basyirfrg8@gmail.com
Skills Relax but precise
 Muhammad Amir Zikri bin Azmi

1888, Kg Padang Negara, Jalan Sultan Mahmud,

Address 20400 Kuala Terengganu, Terengganu
Age 20
Gender Male
I/C number 001026-11-0131
Birth 26/10/2000
Status Single
No. Phone 018 244 3097
Email Amironlyone@gmail.com
Skills Fishing
 Muhammad Nurhafiz bin Zainuddin

No 29 Jalan Seroja 2 Taman Flora Heights

Address 81700 Pasir Gudang Johor
Age 20
Gender Male
I/C number 000716-01-1449
Birth 16/7/2000
Status Single
No. Phone 013 557 890
Email Hafizcomelnya@gmail.com
Skills Motorcycle racing
 Mujibur Rahman bin Osman

2B-10-3A Pangsapuri Saujana Damai,Lorong

Sungai Tram 3, 11900 Bayan Lepas, Pulau
Address Pinang.
Age 20
Gender Male
I/C number 000104-02-0031
Birth 4/10/2000
Status Single
No. Phone 017 634 455
Email Mujiburhebat04@gmail.com
Skills Flirting
 Muhammad Haikal Bin Shoib

-204, Iris Apartment, P.R.S.N. Saujana 4,

Address Saujana Utama, 47000 Sungai Buloh
Age 20
Gender Male
I/C number 000331-10-0891
Birth 31/3/2000
Status Single
No. Phone 0193779660
Email haikalshoib65@gmail.com
Skills Know Everything
Location
5 Location of Business
5.1 Physical Location of the Project

Hope’s Venture choose a strategic location with the populations of people that
have been targeted by our company. It is to ensure this product will contribute to the
community to create such a creative and flexible life. People also will easily find using a
map.

5.2 Building

This building rent area Tebrau

5.3 Basic Amenities

Our company provide basic amenities like prayer room, small kitchen, toilet and
resting place. It can affect our workability and spirit to do the work effectively.
Marketing Plan
6 Marketing plan
6.1 Introduction
A marketing plan considers the value proposition of a business. The value proposition is the
overall promise of value to be delivered to the customer and is a statement that appears front and centre
of the company website or any branding materials.

The Hope’s Venture consider value proposition should state how a product or brand solves the
customer's problem, the benefits of the product or brand, and why the customer should buy from this
company and not another. The marketing plan is based on this value proposition to the customer.

The marketing plan identifies the target market for a product or brand. Hope’s Venture
hopefully can have our own identities which is a bag and a purse with an innovative tracking. Market
research is often the basis for a target market and marketing channel decisions. For example, whether
the company will advertise on the radio, social media, through online ads, or on regional TV.

The marketing plan includes the rationale for these decisions. The plan should focus on the
creation, timing, and placement of specific campaigns and include the metrics that will measure the
outcomes of marketing efforts. Our company will make sure the products provided will be in a good
condition to the customers.

Lastly, a marketing plan can be adjusted at any point based on the results from the metrics. If
digital ads are performing better than expected, for example, the budget for a campaign can be adjusted
to fund a higher performing platform or the company can initiate a new budget. The challenge for
Hope’s Venture to become marketing leaders is to ensure that every platform has sufficient time to
show results.

6.2 Marketing Objective

• Introduce an innovative and new product to the public.
o Most of the people may think this innovative as big failure or worthless. They will
easily say that the product not worth their money. This is because this is brand new item
in release in the public. They never see the item before does not have an experience
using it. Hope’s Venture will surely guarantee the user will satisfied with our product
and will recommend it to other people. The function with a good design offered will
make catch up other people eyes once the product release. It may take a time to become
a known-well company but surely in the future Hope’s Venture will become a well-
known company.
 • Safety first.
o We as a caring company want to create a product that can help their user in many ways
such as safety. From materials to the function of the tracker, we can surely satisfied our
customer needed. They can reduced their worried if they misplaced their belongings by
using the tracker. The material is also safe for them. We only use a approval materials
for our product.
• Fight with other overseas brand.
o Hope’s Venture product will lead to an innovative process in our country. People will
aware about the product and make us as benchmark or competitor in the future. Our
company also will have to face a lot of difficulty such as a competitor in the early stage.
Overseas brand like Levis, Bonia and Timberlake will become a big problem for our
company to grow in the early time. But commitment will lead Hope’s Venture to always
giving the best to the people especially our customer. We will make sure we can
compete with the company in the future.

6.3 Determining Products or Service

➢ Products
o People nowadays will likely survey or investigate something before they consider it to
buy. They also will compare about the price and quality to make sure the product will
worth the price. Normally most of the people will choose the popular brand because
they expect they will get a good quality but the price will be expensive and over price.
Hope’s Venture will offer a good quality of the product released. The quality like the
good leather or a synthetic material with a high quality will become an addition benefits
for our product to become a high quality product. The price also will become affordable
and can be afford by most of the people as specially Malaysian. This is because we sell
a product and not a brand. Maybe we not well known like other company, but we can
guarantee to satisfied our customer
➢ Needs and Wants of Customer

• Safety purpose
o Safety among the public is the most important thing we consider when Hope’s
Venture decide to release this product. People will very sensitive and aware
about the safety fixture in their device or belongings. As many people known
that product in the Hope’s Venture will be added with a tracking device that will
allow the user to search or track if their bag or purse missing. This will be a
main benefit to our customer to make sure their valuable belongings will not be
steal or missing in the area covered. All of they need is a smart phone that will
connect to the tracking provided in their product. So, the risk for their
belongings to be missing or steal will reduce.
• Suitable for all ages
o Hope’s Venture has been plan and decided to variety the product which is will
suit for all ages. There will release the product that all people will all ages
being able to use it. The bag and purse will out with variety of design that will
suit people like kids, teenager and adult. This is because we aware product that
our company will release. People will feel free to choose their style and design
that suit them without worry not suit for their style. So, our product will truly
become a product that suitable for ages. Teen, adult, kids and elderly will easily
find their interest to fit their style. Cartoon design and vogue design will be
applied when produce the product soon.

• Unisex
o This is so important to attract the customer because they can find all the item in
a one store or brand. The main product produced by the Hope’s Venture is purse
and bag. This product is commonly used by all people for their own purpose.
Our company will provide a lot of style and design that will suite both genders
to make the customer satisfied with the product. Such as a handbag or quilted
bag will be one of the type bags for woman that will be produce in our company.
 For the man, sling bag or shoulder bag will be in our plan to be produce. The
addition innovative like tracking device in the bag will make the product very
useful for both genders to use in the daily usage. So, it will be easily to find for
who those shopping with their family or friend. They does not need to go to
other place to find the item for other gender.
• Natural and non-toxic Material
o The material that will be selected surely will not give a bad effect to our
environment or our health. The material like leather or synthetic will be main
material for our product. The leather chosen will genuinely authentic leather like
goat leather or cow leather. These leather chosen because the animal we choose
not from the extinction and these leathers are within the budget. Synthetic
material like ballistic nylon or cordura will give a huge advantage in the quality
and durability to the product. These materials are commonly used in many
famous brands in the market to produce a good quality of bag and purse. So, our
customer will no longer to worry about the material we use in our product
anymore. The common issues like the type of the leather will be used will be
clearly clean for Muslim people because we not use pig and dog skin.

6.4 Marketability of a Product or Service

• Market of a Product or Service

o Shopping store

People love to spend their leisure time or holiday in the shopping mall or shopping
store. There is a lot of shopping mall in our country. People love to go shopping
mall because they can found a lot of shopping store in one building. They can easily
found their interesting thing or belongings without going somewhere else. Hope’s
Venture take this situation as an opportunity open up a store in shopping mall.
People will aware about our brand if they see our store often. So, we can attract
many customers to our store and have a potential to grow big in the future. If this
action become a successful, we can add many more store in other shopping mall like
Aeon or Sogo in the future plan.
 o Online Shopping Platform

Online shopping has become a phenomenon nowadays to all people around the
world. They just can find anything they want even an overseas item in the online
shopping. They like and prefer to shop online rather than go to the store. This is
because they may do not an enough time or they are just lazy because of the
several reason. So, this situation make Hope’s Venture wanted to make a
platform about online shopping with some popular platform out there like
Lazada, Shoppe and Zalora. This action must be taken quickly to make sure the
sales and profit receive in a maximum amount. This will be a big advantage for
the company. So, people will easily find and buy our product without need to go
our store.

o Official websites

Almost all famous brands have their own official website nowadays. Such as
Levis, Billabong, Coach and Timberland, they have their own website that they
can share and update their product. This is important because it will become more
easier to share about their product and news happen in their company. It also can
prevent people from buy a fake product in other website because there are many
websites that offer a fake product using famous company’s brand with a price
cheaper than the original brand. To make sure this situation not happening in the
future, Hope’s Venture need to have an official website. It also will prevent other
company plagiarism our products because of the innovation in our company.

o Research from famous brand

To make sure Hope’s Venture on a good track, we always investigate and doing
some research about other famous brand. We not plagiarism them, but we learn
how their company can attract many customer by selling product like us. Brand like
Timberland and Levis is the among brand we research. Like Levis, their company
have their own identity which is leather and jeans material. This knowledge is very
useful for growing company like us to make sure we stay in a good track to become
a well-known company in the future.
6.5 Target Market

• Quality over brands

o This is a perfect choice for people who buy a product not from the brand but from
the quality. This is because major and important thing that many people in our
community have in their mindset before they buy something. This is because
people like to judge a product using the brand without consider about the price and
mostly quality. They just think if the brand is famous, the product will definitely
have a good quality. This is not a fully wrong but some of the not famous brand has
a good quality and price to offer. Hope’s Venture is a new in the industry but we
can offer the quality better than the most of the famous brand out there. Our
customer surely will satisfied with our product’s quality and price.
o
• Try something new/innovative
o Our product will fit for someone who wanted to try something new from the other
product. As a people already know, Hope’s Venture will release a product which is a
bag or a purse that can be track by their user phone. This is a new in our market and
also a big innovative to offer in our community. Some of the people will look this
improvement as a failure because they never seen and use the product before. But
most of the people will think that the product release have a big potential in the
market which is will give a benefit to them. We as a grown up company will make
sure the product will be useful well and functional to our beloved customer.

• Always forget about their belongings

o People who always forget about their belongings need to use our product because it
very useful for them. Situation like always forget something or carelessly is a
common mistake that happen in our daily life. This problem not only happen to the
adult but also happen between the teenager and kids. This product will functionally
help their user if they carelessly about their belongings. The user just need to open a
track app in their smartphone and the app will track the bag or purse perfectly. This
provided function will attract many people with this common problem because it
will solve their problem in a short time. They do not to be panic anymore. We hope
everyone can reduce this problem by using our product.
 • Start with Johor
o We choose Johor because its near our place and it will be easier to work near the
place we live. Johor also is country that have many visitors and also have many
shopping mall. It will be easier for us to promote our product and get a target sell.
Johor also have a big population of people and also near to Singapore, so we can
maximize our profit.

6.6 Market Trend and Market Size

1. Market Trend
o People around the world like to carrying a simple bag and use a purse to keep their
belongings. Beside for keeping purpose, they also want to look stylish and cool while
carrying it. It can show how well someone in dress up or someone personality. Such
as workers women like to carry a handbag to show how well their skills in dress up.
They also want to keep safety their belongings without effect their looks.
o
2. Product Description
o Hope’s Venture will produce an item that we use to keep our belongings which is
purse and handbag. The material will be based on the leather and synthetic that
suitable and common in producing a good quality of bag. We also will add a tracker
that will help the user to find their bag or purse if they misplace it. The tracker will
cover around 1000 meters radius. It will become a big help for the user for the safety
purpose.

3. Bag and Purse vs Gender

o So basically our company will produce two type of bag which is bag and purse as
our main product. We take an analysis among man and woman in two large state in
Johor (Pasir Gudang and Johor Bahru) for choosing their taste which is bag and purse.
The result show man chose to use purse because most of the man not bring a lot of
stuff everywhere. So, bringing a purse will be enough for them. Although, woman
choose to carry a bag such as handbag because they can bring a lot of stuff like make
up accessories, purse and others.
 Purse Bag
100%
100%

80% 80%

60% 60%

40% 40%

20%
20%
0%
Johor Bahru Pasir Gudang 0%
Johor Bahru Pasir Gudang
Woman Man Woman Man

4. Market Size
o Johor Bahru

Gender Population
Man 597920
Woman 896880
Total 1494800

o Pasir Gudang

Gender Population
Man 18700
Woman 28051
Total 46751

Total Population = Total Johor Bahru + total Pasir Gudang = 1,541,551

Market size (average price) = (1,541,551) x (RM65) = RM 100,200,815

5. Market Share
o We identified a few of company that can be our competitor which is three big
company that have been published for a long time ago in our country. The companies
we choose is Levi’s, Bonia and Timberland. We choose these three brand based on
the total outlet and the user around Johor Bahru and Pasir Gudang.
o Market Share ( Before Penetration)

Company Share (%) Market Share (RM)

Levi’s 35 35,070,285
Bonia 40 40,080,326
Timberland 25 25,050,204
Hope 0 0
Total 100 100,200,815

Sales

Levi's Bonia Hope Timberland

o Market Share ( After Penetration )

Company Share (%) Market Share (RM)

Levi’s 32 32,064,261
Bonia 35 35,070,285
Timberland 23 23,046,187
Hope 10 10,020,082
Total 100 100,200,815
 Sales

Levi's Bonia Timberland Hope

6.7 Sales Forecast

• Type and Price

Type Price (RM)

Bag 50
Purse 80

• 1st Year Monthly Sales Forecast

Month Type Price (RM) Unit Sold Total (RM)

Bag 80.00 300 24,000.00
January
Purse 50.00 200 10,000.00
Total 34,000.00
Bag 80.00 300 24,000.00
February
Purse 50.00 200 10,000.00
Total 34,000.00

Bag 80.00 350 28,000.00

March
Purse 50.00 250 12,500.00
Total 40,500.00
Bag 80.00 300 24,000.00
April
Purse 50.00 200 10,000.00
Total 34,000.00
Bag 80.00 400 32,000.00
May
Purse 50.00 400 20,000.00
Total 52,000.00
Bag 80.00 300 24,000.00
June
Purse 50.00 200 10,000.00
Total 34,000.00
Bag 80.00 300 24,000.00
July
Purse 50.00 200 10,000.00
Total 34,000.00
 Bag 80.00 320 25,600.00
August
Purse 50.00 240 12,000.00
Total 37,600.00
Bag 80.00 350 28,000.00
September
Purse 50.00 230 11,500.00
Total 39,500.00
Bag 80.00 300 24,000.00
October
Purse 50.00 200 10,000.00
Total 34,000.00
Bag 80.00 250 30,000.00
November
Purse 50.00 180 20,000.00
Total 50,000.00
Bag 80.00 450 55,000.00
December
Purse 50.00 350 15,000.00
Total 70,000.00
Total 456,100.00

Target Total
Jan-Dis 2021 increse (5%) RM23,255 RM479,355
Jan-Dis 2022 increse (10%) RM45,610 RM501,710

6.8 Marketing Strategy

• Product Strategy
o Product attributes

Our company will produce two types of product which is purse and bag. We use a
good material which is base from leather or synthetic material that proved can make
our product high quality. We also use an approval leather like cow and goat leather
to make sure our question like pork leather not coming up. It was a big benefit for
our customer because our target customer , Malaysia is majority of Muslim. We also
provide an innovative technology that we call as a tracker. This tracker used for
people to find their bag or purse if they misplace or forget about it. It can track over
1000 meter radius. Its so useful and look innovative for people to use it in the future.
Our company also will provide many design to be chosen by our customer. They
can choose their design that suit their style and taste. We really hope that we can be
a known-well company in the future by serving a good product to the Malaysian.
o Trade Name

Our company’s name “ Hope’s Venture” is to show our hope to fulfill oue customer
satisfied. This logo is based on our style of product which simple but powerful. The
anchor symbol represent bold and brave. We want other people look our brand as a
competitor that can challenge them. “Futuristic” means the innovative that we bring
in our product that will be shock other brand.

o Labelling and packaging

Our product will come with a box to protect the quality before its serve with
customer. The box will have label manufactured and mini logo of our company.
Simple but creative and most importantly is to protect the product from defect
• Pricing strategy
o Based on cost

We will show how exactly we calculate price for our unit which is bag and purse. We
will divided the fixed cost total into two because there are two types of product we
will produce.

Types Total
of cost Type Cost (RM) (RM)
Bag &
Fixed 10,000 (5 workers), 6,000 (rent,ads)
purse 16,000
Bag 1,000 (utilities), 1,000 (materials) 2,000
Variable
purse 1,000 (utilities), 500 (materials) 1,500

Total cost (monthly) + desired margin

Product Margin Total

Monthly Type produce (%) (RM)
Bag 300 120 75.30
January
Purse 200 30 58.00

Purse = RM 60 per unit

Bag = RM80 per unit

• Place/distribution Strategy
o Direct distribution
▪ Sales Team

This action need our company to find a complete team with a high skilled in sales
and promoting a product. Rent a place that full of people like shopping mall or
shopping store to make sure the target sell can be achieve. This can help our
workers to become productive and smart in making a strategy to get a customer.
Our company hope to achieve some sort of reputation and confidence among those
users as this target places with our own sales team.
 ▪ Online

Online platform become more effective ways to reach people indirectly without
meet. People will easily can search what they want and need in the internet. Our
company will take an action as a way to reach more customer. We will use many
ways like make our own website or using an online shopping platform. Platform
like Facebook and Instagram become a phenomenon nowadays. People also have a
fully trust in these online platform to buy their things. We hope by using these
action, we can collect and achieve our target.

o Indirect distribution
• Reseller

To make sure our company’s brand keep growing we will offer our product to
famous outlet like Brands Outlet, Tesco, Giant and Aeon. This is because these
selected outlet have a many customer visited daily. By using their medium and
platform, we can get a customer and also can make our company’s brand become
well-known. Its also become easier to our company to have a business partner in
the future.

• Promotion Strategy
o Advertising
▪ Electronic

We will use a platform like television, radio slot to engaged people around
Malaysia about our company. It obviously will be pricy but its also very worthy.
People will keep hear and listen to our ads when they open their medium. People
will aware about our brand if the ads seem interesting because interesting ads will
attract many people. They will start search for our brand online and will start
following our product.
 ▪ Printed

Our company will make an ads using printed medium like magazine, newspaper
or brochures. The cost will be more reasonable than other ads method and also
worth it. Nice picture with good model will become a strategy for us to make
people attract with our ads.

▪ Outdoor
Medium like billboards, transportation and banner is a great method ads can we
chose. Transportation like train and taxi will attract people out there when they see
it. It may look not powerful but it can make people keep realized about the ads.
Funny and colorful ads will become an addition to keep people eyes while
watching our ads.

• Sales Promotion
o Promotion price
Many companies are doing a promotion during a celebration or festivity like
Chinese New Year and Hari Raya celebration. Hope’s Venture also will follow this
period of time to make a promotion. This is because during this time, Malaysian will
have a holiday and a lot of free time. They will look for a shopping store that offer a
great promotion and deals with their families and friends. Our company must take
this opportunity to increase the sale target and profits by doing a lot of promotion
such as buy 1-free 1 or clearance stock item. This promotion hopefully will attract
many people to buy our product during the promotion time.
o Bulk buying price

Some people like to buy something with a big amount of quantity. Most of them
want to resell because many companies give a big discount to someone who buying
in bulk. Hope’s Venture also offers to the other sellers who want to start their
business or want to become an agent for our company. The discount will increase if
the quantity of bulk increase. The customer does not need to worry about the decay
because the material we use is a base on a leather and synthetic that has a long span
life. This action will become an additional choice for the customer who want to buy
our product.
6.9 Planning for marketing Personnel

Salary per month EPF Contribution SOCSO Total

Position (RM) (13%) (RM) (1.75%) (RM)
Seller 1,150 149.5 20.15 1,319.65
Promoter 1,150 149.5 20.15 1,319.65
Total 2,639.50
6.10 Marketing Budget

WORKING CAPITAL OTHER

ITEM EXPENSES
FIXED ASSET (RM) (RM (RM)
Signboard 3,000
Wages (salary + EPF +
SOCSO 2639.5
Grand opening 1,500
Flyers 200
Banner 200
Total RM7,539.50
Operational Plan
7 Operational plan
7.1 Introduction

Operation unit is one of the most important parts in the business organization because the
through the operations of its product it will lead to a business growth. From this operation of our
business company, Hope’s Venture, we can also maximizing the profit gain.

All activities in this operation will be done according to plan so that it will meet with our
customer’s expectation. In this term of office, we are ensuring that the production of our table will
be produced continuously to fulfill the increasing demand from public. This operation states the
information about the cost of product, salaries of workers, operation flow chart, operation hours,
operation budget and list of suppliers for raw materials and machines.

In the operation unit, we applied a systematic technique and management in order to ensure that
the business will be more efficient and effective in producing table. Therefore, it can fulfil the
demand for customers’ needs and wants by providing the best services to them and
indirectly the business can gain the optimum profit.

Lastly, our company will runs the transformation system to complete the output. Generally, we
have prepared many kind of choices related materials, design the operational process, plan the floor
layout, and distribute the manpower in the organization. Finally, we would produce output where
products are readily to be market and compete with other competitors.
7.2 Process Planning
• Symbol of Process Chart
Process of manufacturing our innovative bag has include all the activities or working
step-by-step from the beginning of the process from combine the bottle with electrical
component till the end of the process. Our process planning is representing by chart and
several symbols to make it easier to understand. So there is a symbol that we would
likely use :

SYMBOL ACTIVITY DESCRIPTION

Activities that

Operation modifies,
Transforms or give
added value to the
input
Movement of

Transportation materials or goods

from one place to
another
Process is delayed

Delay because in process

materials are waiting
for next activity

Finished product or

Storage goods are stored in

the storage area or
warehouse
Activity that measure

Inspection the standard or

quality.
• Process of Flow Chart
Process planning can be identified as the steps of process from the beginning to
the end of the of the product making. As for our product we tried to use a simple step
that start from the beginning of the bag until we insert the electrical tracker component.

o Preparation for the product (bag and purse)

The material (leather, sewing stuff) transport to office

The worker check the quality and the quantity required

Divide the material for bag and purse

The worker start processing the material to product

Keep in the storage foe queuing

o Preparation for electrical tracker

Complete the electrical circuit

Assemble all the electrical component

Programming the tracker using GPS tracking device

Complete the circuit

Testing the circuit

Storage

o Preparation for inserted the tracker into a product

Inserted the complete electrical component into product

Testing the product

Storage and ready to delivery

7.3 Operational Layout
7.4 Production Planning

Average sales forecast per month = RM 53,500

Price per unit:
Bag = RM80
Purse = RM60
Number of output per month = RM34,000
RM 80 + RM60
= RM 242.86 units – per size

If number of working days per-month is 24 days, the amount of the output to be produced per
day is:

243
24
= 11 units per day

7.5 Material Planning

• Product production for a month

No Materials Quantity Price (RM) Total (RM)

1 Skin (Leather, 500 4 2,000
Synthetic)
2 Sewing 500 3 1,500
material
3 Electrical 500 3 1,500
component
 • Supplier identity

Leather and synthetic Hong Fong Trading Sdn.Bhd

64, Jalan Putra 1, Taman Tun Sri
Yacob, 81300 Johor Bahru, Johor,
Malaysia.

Sewing material Chop Yoong Seng

44, Jalan Dedap 13, Johor Jaya,
81100 Johor Bahru, Johor

7.6 Machine and Equipment Machine

No Machine Units Price (RM) Total (RM)

1 Soldering devices 3 24.90 74.70

(complete set)

2 Bag making 1 5,000 5,000

machine(used)
 3 Leakage current 2 90.00 180.00

clamp meter (used)

Total (RM) 5,254.70

7.7 Manpower Planning

Position No of personal

Production Supervisor 1

Technician / Sewer 3

Quality Inspector 1

Total 5
 • Direct Labor Planning Schedule

Designation No of Salary (RM) EPF SOSCO Total (RM)

Worker

Operation 1 1,600.00 - - 1,600.00

Manager

Technician / 3 6.00 per hrs - - 2,592.00

Sewer 5.00 x 6hrs = 36.00
36.00 x 24 = 864.00

Quality Inspector 1 6.00 per hrs - - 1080.00

6.00 x 7hrs =
42.00
42.00 x 24 =
1080.00

Total 5 5,272.00
 • Schedule Task Responsibility

Position Task and Responsibilities

OPERATION MANAGER • Responsible of the operation of the company

• Monitoring the operation activities to make sure all

business transaction is going smoothly
• To make sure all the facilities is on the good condition

• To make sure the fully utilizing of the equipment of the

operation
• Provide a good operation plan for the business

Operational Supervisor • Supervise effective working of production personnel

and prepare effective production schedules and
ensure compliance to all company policies.
• Maintain records of all data attendance and provide
effective training to all staff members.
• Coordinate with equipment and process teams and
ensure compliance to all protocols and maintain
product quality.

Technician / Sewer • Provide assistance to assemble, test and maintain

company equipment.
• Provide anytime support to troubleshoot the
equipment problems.
• Perform regular inspections to identify and correct
equipment malfunctions, repairs and replacements.
• Make sure the product is prepared well and within a
time.
Quality Inspection • Perform dimensional, visual, electrical and
mechanical inspection using standard documentation
and procedures.
• Utilize precision measuring tools to assist receiving
inspection.
• Provide acceptance or rejection for compliance to
established standards and processes.
7.8 Overhead Requirement

No Types of Overhead Monthly

Cost (RM)

1 Bills 200.00

2 Insurance 150.00

3 Maintenance 100.00

TOTAL 450.00

7.9 Location Plan

Location is an important element to have a successful start and a successful business.

Hope’s Venture take this action as an important thing and have choose to start a company in Johor
Bahru, Johor as the location area of the operation business. It is because of many several reason lead to
Johor Bahru. This is because Johor is a state that lead to modern society and lifestyle. This can help our
product which is seem futuristic to growth and have a many customer. This is because the area that we
choose is an industrial area and have a lot of potential to become a bigger company in the future. Our
supplier also nearby with us, so it will minimize the used of transportation and fuel cost as the cost of
transportation is quite high. There are also residential area that can influence sales revenue as service
priority. Within the perimeter, there are several other suppliers such as Hong Fong Trading Sdn.Bhd.
7.10 Business and Operation Hours

WORKING DAYS WORKING HOURS

Monday 9.30 AM – 6.00 PM

Tuesday 9.30 AM – 6.00 PM

Wednesday 9.30 AM – 6.00 PM

Thursday 9.30 AM – 6.00 PM

Friday 9.30 AM – 6.00 PM

Saturday 11.00 AM – 6.00PM

Sunday Closed / Rest

7.11 License, Permits & Regulations Required

Our company had register with an official permits like Suruhanjaya Syarikat
Malaysia (SSM) in 2020 which is to make sure our company is legal for this country. It
can also make our company secured from bad behaviour because we have been
protected by SSM. We also need to bring our worker for a training and overall cost
expected to be RM250.

7.12 Implementation Schedule

Activities Deadlines Durations

Incorporation for business Jan – Feb 2020 2months

Application for license and permits Jan – March 2020 3months

Searching for business premise and Feb – May 2020 3months

business partner
Searching for a machinery May 20020 1month

Insertion the raw materials and the June 20020 1month

machines

Recruitment of the workers and a right June – August 2months

training 20020
7.13 Operation Budget

No. Item Expenses Fixed Asset Monthly Other

(RM) Expenses (RM) (RM)
1.
- Electronic
equipment 5,254.70
2. - Salary 5,272.00
- Operation 450.00
Overhead
- Raw Material 3,500.00
- Electrical 1,500.00
component
3. - Business’s 150.00
License SSM
- Training 250.00
Total 16,376.70
Administration Plan
8 Administration Plan
8.1 Introduction

Hope’s Vebture is a cooperation that was registered under Suruhanjaya Malaysia

(SSM). This company provided a highest quality of bag and purse which is added with an
innovative tracker for help people in need. All people sometimes or usually forget about their
belongings that will lead a lot of time for the to find it. With a tracker added, our user will
easily tracker their bag or purse easily using their smart phone. They can save their time and
also their belonging from being thief by wrong person. Our company also provide a lot of
design that suitable for all people within ages or gender. They can choose their style that suit
them. We will also provide an affordable price with a good quality.

Made with genuine leather and good quality of synthetic material will make our product
become more interesting. We also only use a cow and sheep leather because these leathers are
suitable for all people. So, issues like pork leather will not be questioned when it comes to our
product. We will also will promote the product to people when the product come out to make
sure all of people know about our product. People will aware and become curious about the
product from our company.

This business was run at few places around Johor as an example Pasir Gudang, Johor
Bahru and Masai, while our office is found Tebrau where is that the place is strategic and one
among the most important populations among Johor. The office are going to be operating from
Monday-Saturday (8am-6pm) while Sunday is closed.

8.1.1 Vision

• To encourage people about our product and the advantage of our product.

• To become a well-known company in the future.

• To challenge oversea brands out there.

8.1.2 Mission

To become a huge and successful company that bring Malaysian product the world in the
future.
8.1.3 Objective

Specific Hope’s Venture produce bag and purse to form our

customer satisfied with our service. Our product is one
amongst the direct businesses we run and promote. the
placement is even specific since we survey supported the
frequent of individuals within the area. we've high
expectation that our innovative product has to be specific
not just the placement but also the employment and
purpose itself in terms of functions. There are many types of
design that we organized to make sure users or customers
will satisfied with our product. Comes with form of size
where you'll be able to choose anytime anywhere.
Measurable As an early stage in our planning, we would like to target
the right amount to produce the right amount of bag and
purse to avoid losses. We will use our sales target for our
guidance to produce more product. Since we are in
beginning stage, we try to produce only a little to know how
the market will react.
Achievable We do achieve most of our selling market when we get
higher demands over years and it reduce any loss of
prediction. Moreover, it runs smoothly as plan since the
employees are also from the head department itself and we
are trained to be skilled worker.
Realistic Even our product seems futuristic and impossible to
produce, we have investigate that our product is still reliable.
This is because its only an innovative product that will help
people nowadays.

Time The prediction of our product is within a year our sales has

Frame reach its target, so we can produce a large amount of bag

and purse for the next following year and try to open other
store if the demand is increasing.
 In a conclusion, we still need the entire SMART concept to accomplish our
common goal. All the rules which 5 aspect needs to be follow to make sure our
objective is clear. The specific location, the measurable of our process, the achievable
of sales, the realistic of the product and the time frame of the prediction to achieve our
sales target of the year.
8.2 Organization by Chart
8.3 Organizational Structure by Function
8.4 Manpower Planning

Position No. Of Personnel

General Manager 1

Administrative Manager 1

Operational Manager 1

Marketing Manager 1

Financial Manager 1

Production Supervisor 1

Technician / Sewer 3

Quality Inspector 1

Total 10
Table 2: List of Administrative personnel
8.5 Schedule of Task & Responsibility

Position Tasks and Responsibilities

General Marketing • To plan, implement and control overall

management of the business.
• To be liable for the performance of business.
• Monitoring all activities in the business.
• To make sure the environment of office always
clean
• To keep the office area neat, tidy and helps to
supervise and motivate staff.

Administrative • To handle office administrative duty.

• To assist in payroll preparation, attendance and
Manager
reporting.
• To be able to handle incoming calls with good
telephone etiquette.
• To maintain a good and efficient computer and
filling system.

Marketing Manager • Developing price strategies upon balancing

customer satisfaction and firm objectives.
• Identifying, developing, evaluating marketing
strategic plans, based on knowledge or
organizational objectives, cost and markup factors
and market characteristics.
• Consulting product development department on
product specifications like design, packaging and
color.

Operational Manager • Responsible of the operation of the company.

• Monitoring the operation activities to make sure all
business transaction is going smoothly.
• To make sure all the facilities is on the good
condition.
Position Tasks and Responsibilities

• To make sure the fully utilizing of the equipment of

the operation.
• Provide a good operation plan for the business.

Financial Manager • Responsible for keeping full set of accounts.

• Prepare relevant account reports.
• Prepare invoices, quotations, purchase orders and
operation related documents.

Operational • Supervise effective working of production

Supervisor personnel and prepare effective production
schedules and ensure compliance to all
company policies.
• Maintain records of all data attendance and
provide effective training to all staff members.
• Coordinate with equipment and process teams
and ensure compliance to all protocols and
maintain product quality.
Technician / Sewer • Provide assistance to assemble, test and
maintain company equipment.
• Provide anytime support to troubleshoot the equipme
• Perform regular inspections to identify and
correct equipment malfunctions, repairs and
replacements.
• Make sure the product is prepared well and within
a time.
Quality Inspection • Perform dimensional, visual, electrical and
mechanical inspection using standard
documentation and procedures.
• Utilize precision measuring tools to assist
receiving inspection.
• Provide acceptance or rejection for compliance to
established standards and processes.
8.6 Schedule of Remuneration

Position No Monthly Salary EPF SOCSO Total

(RM) (RM) (RM) Amount

(RM)
General 1 2,350.00 470.00 47.50 2,867.50
Manager
Administrative 1 2,050.00 410.00 41.50 2,501.50

Manager
Marketing 1 2,050.00 410.00 41.50 2,501.50

Manager
Operational 1 2,050.00 410.00 41.50 2,501.50

Manager
Financial 1 2,050.00 410.00 41.50 2,501.50

Manager

Table 4: Schedule of Remuneration

8.7 List of Office Equipment

Item Quantity Cost per unit Total

(RM) (RM)
Laptop 1 2,000 2,00

Printer and photocopy machine 1 250 250

Fan 4 230 920

Lamp 6 50 300

Fire extinguisher (2kg) 1 95 95

First aid kit 1 30 30

Stationary 1 120 120

Total 3,715

Table 5 : List of Office Equipment

8.8 List of Office Furniture & Fittings
Item Quantity Cost per unit Total
(RM) (RM)
Office desk 1 135 150

Table 1 80 225
Office chair 1 50 160

Sofa 4 150 600

Plant 2 25 50
Total 1,185

Table 6: List of Office Furniture & Fittings

8.9 Administration Expenses

Item Unit Unit price Total

(rm) (rm)
Business Licenses 1 150 150

Registration Fees 1 80 80

Legal and Audit 1 1400 1400

Fees
TOTAL 1630.00

Table 7: Administration Expense

8.10 Administration Budget
Administration budget

Fixed item Fixed asset Monthly expenses Other expenses

Salary

• General Manager
- 2,350 -
• Administrative
Manager
- 2,050 -

• Marketing Manager - 2,050 -

• Operation Manager - 2,050

• Financial Manager
- 2,00 -

EPF

• General Manager 470.00

• Administrative - 410.00 -

Manager
- 410.00 -
• Marketing Manager

• Operation Manager 410.00

• Financial Manager -
410.00
SOCSO

• General Manager - 47.50

• Administrative
- 41.50
Manager

• Marketing Manager 41.50

-
• Operation Manager
41.50

• Financial Manager -
41.50
 Administration budget

Fixed item Fixed asset Monthly expenses Other expenses

Utilities + Stationary - 320

Vehicles 70,000

Office supplies - 50 -

Business registration - - 80

Business license/permit - - 150

Other pre-operating and

incorporation costs - - 500

Others (Administration
expenses)
- - 1630

Deposit - - 4500

Total 70,000 13,244 6,280.00

Financial Plan
9 Financial Plan

9.1 Introduction

A financial business plan is created by gathering all the components of the business and
expressing them in numbers – both revenue and startup expenses.Every business plan needs a
cash flow projection. The rest of the plan tells the story of the business and how the company
will execute that plan.The cost-volume-profit analysis shows the income or cash flows that
occur with different scenarios of key assumptions, like sales or costs.

The sections about our marketing plan and strategy are interesting to read, but they don't
mean a thing if you can't justify your business with good figures on the bottom line. Hope’s
Venture do this in a distinct section of your business plan for financial forecasts and statements.
The financial section of a business plan is one of the most essential components of the plan, as
we will need it if you have any hope of winning over investors or obtaining a bank loan. Even if
our don't need financing, we should compile a financial forecast in order to simply be
successful in steering our business.
9.2 Administration Budget

Particulars F.Assets Monthly Others Total

Fixed Assets*

Land & Building -

Furniture & Fitting 1,185 1,185

Ofice Equipment 3,715 3,715

Vehicles 70,000 70,000

- -
Working Capital

Salaries,EPF,SOCSO 12,874 12,874

Utilities + stationery 320 320

Office supplies 50 50

- -

- -

- -

- -
Other Requirements

Deposit 4,500 4,500

Registration & Licences 150 150

Insurance & Road Tax -

Other Expenses 1,630 1,630

Total 74,900 13,244 6,280 94,424

9.3 Marketing Budget

Particulars F.Assets Monthly Others Total

Fixed Assets*

Signboard 3,000 3,000

-
Working Capital
wages (salary + epf +
Sosco) 2,640 2,640

Banner 200 200

Grand opening 1,500 1,500

Flyers 200 200

-
Other Requirements
Deposit

Registration & Licences -

Insurance & Road Tax

Other Expenses -

Total 3,000 4,540 - 7,540

9.4 Operation Budget

Particulars F.Assets Monthly Others Total

Fixed Assets*

Machine 5,255 5,255

Working Capital

Purchase of Materials 5,000 5,000

Carriage Inwards & Duties -

Salaries, EPF & SOCSO 5,272 5,272

Overhead 450 450

-
Other Requirements

Deposit - -

Registration & Licences - -

Insurance & Road Tax 150 150

Other Expenses 250 250

Total 5,255 10,722 400 16,377

9.5 Useful Life of Fixed Assets
* useful life of fixed assets years
Land & Building nil
Furniture & Fitting 5
Ofice Equipment 5
Vehicles 20
5
Signboard 5
0 5
Machine 10
0 5
0 5
5

Depreciation method 1
1=straight line, 2=reducing balance
9.6 Sales & Purchases Budget

Sales & Purchases Budgets

Sales Purchases
Month
(RM) (RM)
1 34,000 5,000
2 34,000 5,000
3 40,500 5,000
4 34,000 5,000
5 52,500 5,000
6 34,000 5,000
7 34,000 5,000
8 37,600 5,000
9 39,500 5,000
10 34,000 5,000
11 50,000 5,000
12 70,000 5,000

Total Year 1 494,100 60,000

Total Year 2 518,805 63,000

Total Year 3 570,686 69,300
Increment Year
2 (%) 5% 5%
Increment Year
3 (%) 10% 10%
9.7 Sales Collection

Sales Collections (%)

Current month 50%
1 month after sales 50%
2 months after sales 0%
Total 100%

9.8 Payments to Suppliers

Payments to
Suppliers (%)
Current month 50%
1 month after purchase 50%
2 months after purchase
Total 100%

9.9 Value of Stocks for 3 Years

Year 1 Year 2 Year 3

Value of Stocks

Raw materials 402 422 443

Finished goods 1,200 1,260 1,386

Tax Rate (Private Ltd

Co.) 20% 20% 20%

Increase in working capital 5% 5%

 9.10 Project Implementation Cost & Sources of Finance

PROJECT IMPLEMENTATION COST & SOURCES OF FINANCE

Project Implementation Cost Suggested Sources of Financing
Requirements Cost Loan Hire-Purchase Own Contribution
Fixed Assets Cash Existing Assets
Land & Building - - - -
Furniture & Fitting 1,185 - - 1,185 -
Ofice Equipment 3,715 - - 3,715 -
Vehicles 70,000 - 68,500 1,500 -
- - - - -
Signboard 3,000 - 1,500 1,500 -
- - - - -
Machine 5,255 5,255 - -
- - - - -
- - - - -
- - - - -
Working Capital months 1 28,505 7,505 18,000 3,000
Other Expenses 6,680 1,680 - 5,000
Contingencies 10% 11,834 1,834 - 10,000

TOTAL 130,174 16,274 88,000 25,900 -

Interest Interest on
on Loan Hire-Purchase
3% 4%
Loan duration H.P. duration
(years) (years)
15 9
* Method: 1 = flat rate Method*
9.11 Depreciation of Fixed Assets
9.11.1.1.1 Furniture and Fitting
Name of Assets Furniture & Fitting
Cost (RM) 1,185
Method of Depr. Straight Line
Duration (years) 5
Annual Accumulated
Year Depreciation Depreciation Book Value

- - 1,185

1 237 237 948

2 237 474 711

3 237 711 474

4 237 948 237

5 237 1,185 -
6 0 0 -
7 0 0 -
8 0 0 -
9 0 0 -
10 0 0 -
9.11.2 Office Equipment
Name of Assets Ofice Equipment
Cost (RM) 3,715
Method of Depr. Straight Line
Duration (years) 5
Annual Accumulated
Year Depreciation Depreciation Book Value

- - 3,715

1 743 743 2,972

2 743 1,486 2,229

3 743 2,229 1,486

4 743 2,972 743

5 743 3,715 -
6 0 0 -
7 0 0 -
8 0 0 -
9 0 0 -
10 0 0 -

9.11.3 Vehicles
 Name of Assets Vehicles
Cost (RM) 70,000
Method of Depr. Straight Line
Duration (years) 20
Annual Accumulated
Year Depreciation Depreciation Book Value

- - 70,000

1 3,500 3,500 66,500

2 3,500 7,000 63,000

3 3,500 10,500 59,500

4 3,500 14,000 56,000

5 3,500 17,500 52,500

6 3,500 21,000 49,000

7 3,500 24,500 45,500

8 3,500 28,000 42,000

9 3,500 31,500 38,500

10 3,500 35,000 35,000

9.11.4 Signboard
Name of Assets Signboard
Cost (RM) 3,000
Method of Depr. Straight Line
Duration (years) 5
Annual Accumulated
Year Depreciation Depreciation Book Value
- - 3,000
1 600 600 2,400
2 600 1,200 1,800
3 600 1,800 1,200
4 600 2,400 600
5 600 3,000 -
6 0 0 -
7 0 0 -
8 0 0 -
9 0 0 -
10 0 0 -

9.11.5 Machine
Name of Assets Machine
Cost (RM) 5,255
Method of Depr. Straight Line
Duration (years) 10
Annual Accumulated
Year Depreciation Depreciation Book Value

- - 5,255

1 525 525 4,729

2 525 1,051 4,204

3 525 1,576 3,678

4 525 2,102 3,153

5 525 2,627 2,627

6 525 3,153 2,102

7 525 3,678 1,576

8 525 4,204 1,051

9 525 4,729 525

10 0 0 525
9.12 Loan Repayment Schedule

LOAN REPAYMENT SCHEDULE

Total 16,274
Interest Rate 3%
Duration (years) 15
Method Annual Rest
Year Principal Interest Total Payment Principal Balance

- - 16,274

1 1,085 488 1,573 15,189

2 1,085 456 1,541 14,104

3 1,085 423 1,508 13,019

4 1,085 391 1,475 11,934

5 1,085 358 1,443 10,849

6 1,085 325 1,410 9,764

7 1,085 293 1,378 8,679

8 1,085 260 1,345 7,594

9 1,085 228 1,313 6,509

10 1,085 195 1,280 5425

9.13 Hire-Purchase Repayment Schedule

HIRE-PURCHASE REPAYMENT SCHEDULE

Total 88,000
Interest Rate 4%
Duration (years) 9

Year Principal Interest Total Payment Principal Balance

- - 88,000
1 9,778 3,520 13,298 78,222
2 9,778 3,520 13,298 68,444
3 9,778 3,520 13,298 58,667
4 9,778 3,520 13,298 48,889
5 9,778 3,520 13,298 39,111
6 9,778 3,520 13,298 29,333
7 9,778 3,520 13,298 19,556
8 9,778 3,520 13,298 9,778
9 0 0 - 9,778
10 0 0 - 9,778
 9.14 Pro Forma Cash Flow Statemen

MONTH 1 2 3 4 5 6 7 8 9 10 11 12 TOTAL YEAR 2 YEAR 3

CASH INFLOWS
Owners' Capital (cash) 25,900 - - - - - - - - - - - 25,900 - -
Bank Loan 16,274 - - - - - - - - - - - 16,274 - -
Cash Sales 17,000 17,000 20,250 17,000 26,250 17,000 17,000 18,800 19,750 17,000 25,000 35,000 247,050 259,403 285,343
Collection of Accounts Receivable - 17,000 17,000 20,250 17,000 26,250 17,000 17,000 18,800 19,750 17,000 25,000 212,050 272,786 283,181
TOTAL CASH INFLOWS 59,174 34,000 37,250 37,250 43,250 43,250 34,000 35,800 38,550 36,750 42,000 60,000 501,274 532,188 568,524

CASH PAYMENTS
Administrative Expenses
Salaries,EPF,SOCSO 12,874 12,874 12,874 12,874 12,874 12,874 12,874 12,874 12,874 12,874 12,874 12,874 154,482 162,206 170,316
Utilities + stationery 320 320 320 320 320 320 320 320 320 320 320 320 3,840 4,032 4,234
Office supplies 50 50 50 50 50 50 50 50 50 50 50 50 600 630 662
- - - - - - - - - - - - - - -
- - - - - - - - - - - - - - -
- - - - - - - - - - - - - - -
- - - - - - - - - - - - - - -
Marketing Expenses
wages (salary + epf + Sosco) 2,640 2,640 2,640 2,640 2,640 2,640 2,640 2,640 2,640 2,640 2,640 2,640 31,674 33,258 34,921
Banner 200 200 200 200 200 200 200 200 200 200 200 200 2,400 2,520 2,646
Grand opening 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000 18,900 19,845
Flyers 200 200 200 200 200 200 200 200 200 200 200 200 2,400 2,520 2,646
0 - - - - - - - - - - - - - - -
Operations Expenses
Cash Purchases 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000 31,500 34,650
Payment of Accounts Payable - 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 27,500 30,000 31,500
Carriage Inwards & Duties - - - - - - - - - - - - - - -
Salaries, EPF & SOCSO 5,272 5,272 5,272 5,272 5,272 5,272 5,272 5,272 5,272 5,272 5,272 5,272 63,264 66,427 69,749
Overhead 450 450 450 450 450 450 450 450 450 450 450 450 5,400 5,670 5,954
- - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - -
Deposit 4,500 - - - - - - - - - - - 4,500 - -
Registration & Licences 150 - - - - - - - - - - - 150 - -
Insurance & Road Tax 150 - - - - - - - - - - - 150 150 150
Other Expenses 1,880 - - - - - - - - - - - 1,880 1,880 1,880
Purchase of Fixed Assets - Land & Building - - - - - - - - - - - - - - -
Purchase of Fixed Assets - Others 10,155 - - - - - - - - - - - 10,155 - -
Hire-Purchase Down Payment 3,000 - - - - - - - - - - - 3,000 - -
Hire-Purchase Repayments
Principal 815 815 815 815 815 815 815 815 815 815 815 815 9,778 9,778 9,778
Interest 293 293 293 293 293 293 293 293 293 293 293 293 3,520 3,520 3,520
Loan Repayments
Principal 90 90 90 90 90 90 90 90 90 90 90 90 1,085 1,085 1,085
Interest 41 41 41 41 41 41 41 41 41 41 41 41 488 456 423
Tax - - - - - - - - - - - - - 0 0
TOTAL CASH OUTFLOWS 47,079 29,744 29,744 29,744 29,744 29,744 29,744 29,744 29,744 29,744 29,744 29,744 374,266 374,531 393,957

EXCESS/(DEFICIT) 12,095 4,256 7,506 7,506 13,506 13,506 4,256 6,056 8,806 7,006 12,256 30,256 127,008 157,657 174,567
OPENING BALANCE - 12,095 16,350 23,856 31,362 44,868 58,374 62,629 68,685 77,491 84,497 96,752 - 127,008 284,665
ENDING BALANCE 12,095 16,350 23,856 31,362 44,868 58,374 62,629 68,685 77,491 84,497 96,752 127,008 127,008 284,665 459,232
9.15 Pro Forma Balance
Hope's Venture
PRO FORMA BALANCE SHEET
Year 1 Year 2 Year 3
ASSETS

FIXED ASSETS (Book Value)

Land & Building - - -
Furniture & Fitting 948 711 474
Ofice Equipment 2,972 2,229 1,486
Vehicles 66,500 63,000 59,500
- - -
Signboard 2,400 1,800 1,200
0 - - -
Machine 4,729 4,204 3,678
0 - - -
0 - - -
- - -
77,549 71,944 66,338
CURRENT ASSETS
Deposit 4,500 4,500 4,500
Stok - Raw Materials 402 422 443
Stok - Finished Goods 1,200 1,260 1,386
Accounts Receivable 35,000 21,617 23,779
Cash 127,008 284,665 459,232
168,110 312,464 489,339

TOTAL ASSETS 245,659 384,407 555,678

OWNERS' EQUITY
Capital 25,900 25,900 25,900
Accumulated Net Profit 141,848 289,959 468,942
167,748 315,859 494,842
LIABILITIES
Loan Balance 15,189 14,104 13,019
Hire-Purchase Balance 78,222 68,444 58,667
Accounts Payable 2,500 4,000 7,150
Tax Payable 0 0 0
95,911 86,548 78,836

TOTAL OWNER' EQUITY &

263,659 402,407 573,678
LIABILITIES
9.16 Manufacturing Cost

Hope's Venture
MANUFACTURING COST

Year 1 Year 2 Year 3

Materials
Opening Stock 0 402 422
Current Year Purchases 60,000 63,000 69,300
Closing Stock 402 422 443
Materials Used 59,598 62,980 69,279
Carriage Inwards & Duties - - -
59,598 62,980 69,279
Salaries, EPF & SOCSO 63,264 66,427 69,749
Factory Overhead
Depreciation on Fixed Assets
(Operation) 525 525 525
Overhead 5,400 5,670 5,954
- - -
- - -
Total Factory Overhead 5,925 6,195 6,479
Cost of Goods Manufactured 128,787 135,603 145,507
9.17 Pro Forma Balance Sheet

Hope's Venture
PRO FORMA BALANCE SHEET
Year 1 Year 2 Year 3
ASSETS

FIXED ASSETS (Book Value)

Land & Building - - -
Furniture & Fitting 948 711 474
Ofice Equipment 2,972 2,229 1,486
Vehicles 66,500 63,000 59,500
- - -
Signboard 2,400 1,800 1,200
0 - - -
Machine 4,729 4,204 3,678
0 - - -
0 - - -
- - -
77,549 71,944 66,338
CURRENT ASSETS
Deposit 4,500 4,500 4,500
Stok - Raw Materials 402 422 443
Stok - Finished Goods 1,200 1,260 1,386
Accounts Receivable 35,000 21,617 23,779
Cash 127,008 284,665 459,232
168,110 312,464 489,339

TOTAL ASSETS 245,659 384,407 555,678

OWNERS' EQUITY
Capital 25,900 25,900 25,900
Accumulated Net Profit 141,848 289,959 468,942
167,748 315,859 494,842
LIABILITIES
Loan Balance 15,189 14,104 13,019
Hire-Purchase Balance 78,222 68,444 58,667
Accounts Payable 2,500 4,000 7,150
Tax Payable 0 0 0
95,911 86,548 78,836

TOTAL OWNER' EQUITY &

263,659 402,407 573,678
LIABILITIES
9.18 Financial Ratios

Hope's Venture
FINANCIAL RATIOS

Current Ratio Quick Ratio (Acid Test)

30.0 30.0
25.0 25.0
20.0 20.0
Ratio

Ratio
15.0 15.0
10.0 10.0
5.0 5.0
- -
1 2 3 1 2 3

Year Year

Return on Sales Return on Equity

32% 90%
32% 80%
31% 70%
31% 60%
30%
30% 50%
%

29% 40%
29% % 30%
28% 20%
28% 10%
27% 0%
1 2 3 1 2 3

Year Year

Return on Investment Debt to Equity

70% 0.80
60% 0.70
50% 0.60
0.50
40%
Ratio

0.40
%

30%
0.30
20% 0.20
10% 0.10
0% 0.00
1 2 3 1 2 3

Year Year
9.19 Forecast Performance

Hope's Venture
FORECASTED PERFORMANCE

Particulars Year 1 Year 2 Year 3

PROFITABILITY
Sales 494,100 518,805 570,686
Gross Income 366,513 383,262 425,305
Net Income Before Tax 141,848 148,111 178,983
Net Income After Tax 141,848 148,111 178,983
Accumulated Net Income 141,848 289,959 468,942

LIQUIDITY
Tatal Cash Receipts 501,274 532,188 568,524
Total Cash Payments 374,266 374,531 393,957
Excess (Deficit) 127,008 157,657 174,567
Accumulated Cash 127,008 284,665 459,232

SAFETY
Owners' Equity 167,748 315,859 494,842
Fixed Assets 77,549 71,944 66,338
Current Assets 168,110 312,464 489,339
Long Term Liabilities 93,411 82,548 71,686
Current Liabilities 2,500 4,000 7,150

FINANCIAL RATIOS
Profitability
Return on sales 29% 29% 31%
Return on Equity 85% 47% 36%
Return on Investment 58% 39% 32%
Liquidity
Current Ratio 12.58 21.02 27.17
Quick Ratio (Acid Test) 12.12 20.61 26.82

Safety
Debt to Equity 0.68 0.30 0.17

BREAK-EVEN ANALYSIS
Break-Even Point (Sales) 306,904 395,271 405,902
Break-Even Point (%) 62% 76% 71%
Conclusion
10 Conclusion
Hope’s Venture is a small company in the beginning that have a big
dream to become a successful company in the future. There will be a lot of complex,
time consuming and life altering during the process. We must admit that there are
many hard things that we must go through into it than just providing the products or
services that a business offers. We mut to take care a lot of things like business’s
finances, protecting the company business and personal assets, keeping it business
legal, paying taxes, keeping records, managing employees and more. This may a big
challenge and risks for our company to take over it successfully. Everyone must to
take their own responsibility to make sure we can achieve as an entrepreneur mean
that always start a small business until it become successful.

To make it clear, building a small company is not an easy task. It requires an

entrepreneurship skill and innovation thinking. We must to come out with an idea that
will make everyone satisfied and give an attraction for them to buy or invest in our
company. Profit is a good thing but it is not a main purpose. This is because it will
lead our company to destruction and slow in growth. Make our company well known
is a main purpose as a new company. This action will lead people to have a courage to
buy our product and give a good feedback which will lead to profitable. These
business person attributes are the fundamental worth that should be learned, followed
and applied by every person so as to become accomplishment due to these decides the
achievement or disappointment of corporate business advancement, which likewise
decides if the arrangement of center intensity of endeavors. These business visionary
characteristics can be named basic component that contrast the distinction between the
effective business visionary and the standard business visionary.. So, it is important as
an entrepreneur to choose wisely their way in conduct a company.

In conclusion, fruitful business people are the thought process and impetus of
the economy in the nation. The nations can't arrive at the degree of created nations if
there are no fruitful business people in the nation since they are the foundation of the
monetary turn of events.
Appendices
11.0 Appendices & Reference

• https://study.com/academy/lesson/what-are-operational-plans-for-a-business-
definition-types-
examples.html#:~:text=An%20operational%20plan%20can%20be,planning%20process
%20within%20a%20business.

• http://entrepreneurinsight.com.my/business-plan-operations-management-plan/

• https://yourbusiness.azcentral.com/overall-purpose-business-plan-
1002.html#:~:text=A%20business%20plan%20is%20an,%2C%20partners%2C
%20employees%20and%20vendors.

• https://www.upcounsel.com/administrative-plan-for-
business#:~:text=When%20created%20properly%2C%20an%20administrative,g
oing%20in%20the%20right%20direction.

• https://www.bytestart.co.uk/business-plan-
8.html#:~:text=Your%20conclusion%20should%3B%20reiterate%20the,should
%20detail%20the%20finance%20required.

• https://study.com/academy/lesson/what-are-operational-plans-for-a-business-
definition-types-
examples.html#:~:text=An%20operational%20plan%20can%20be,planning%20
process%20within%20a%20business.

• https://www.youtube.com/watch?v=K37on9Dziww

• https://www.youtube.com/watch?v=JqfeGIuak_w

• https://www.youtube.com/watch?v=2gNc53QFlzg