Importing clothing accessories from Indonesia

Written by Mr. Jonathan Camilleri IAD, who is referred to as “the entrepreneur” within this document, may be contacted on for further
queries:

Email: camilleri.jon@gmail.com

Postal address: 33, L. Casolani street, Birkirkara BKR 4535,

Malta (EU)

Online resume and testimonials are available online at http://mt.linkedin.com/in/jonathancamilleri.

Version 1.0

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Confidentiality agreement
The reader acknowledges that the information provided within this business plan is confidential, therefore the reader agrees not to
disclose it without the explicit written consent of the entrepreneur.

It is acknowledged by the reader that information to be furnished in this business plan is in all respects confidential in nature, other than
information which is in the public domain through other means and that disclosure of use of same by reader may put the reader as liable
for the infringement of intellectual property.

It is assumed that the reader is familiar with business terminology, accounting, and, has a good grasp of the English language.

The document remains the property of the author, and, acceptance of reading this document is assumed to be an acceptance of this
agreement.

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Executive summary
This documents portrays the setup of a business organization that imports clothing
accessories such as rings, earrings, bracelets, beach sandals and handbags, from
Indonesia, and, re-selling them within the Maltese islands.
Due to the highly competitive market the entrepreneur is concerned about availing from
competitively priced products which can be resold at a mark-up at markets, beaches, and,
within retail outlets located near beaches and outdoor events and activities that are
commonly organised during the summer season within the Maltese islands.

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Company summary
The business organisation shall advertise accessories, with particular focus on women’s
accessories, and, shall order products according to the orders – on which a booking
deposit1 shall be collected from the ordering customer.
The entrepreneur shall operate from his private residence, and, keep minimal stocks,
operating on a just-in-time business process.2

The entrepreneur undertakes to negotiate purchase prices which are favourable, trying to
negotiate bulk discounts for popular items, and, attain price efficiency by, for example,
ensuring that items are transported within a single transhipment or cargo.
The entrepreneur is seeking business partners, business angels, and, suppliers,
particularly in Indonesia, who may provide catalogues and items that are available for sale
at competitive prices.

Start-up summary3
€
Setup of business operations and start-up costs of stock Less than €2,000
Business advisory To be estimated

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Deposit of 10% of the total order value in €s shall be collected from the ordering customer, for items that are held in stock;
Deposit of 25% of the total order value in €s shall be collected for items that are not in stock, and, a mutually convenient
delivery date or range of dates shall be agreed, although the entrepreneur does not assume responsibility for issues that do not lie
within his reasonable control, typically, delays in shipment by air or by sea.
Since the entrepreneur calculates the profit on a mark-up basis, items requiring more urgent delivery can be supported by way of
asking for delivery by courier or via air traffic, which has to be agreed with the provider in the third country. Increased cost of
importation, customs duties, taxes, and, review of the business costs are expected to affect the selling price of the items.

2
Just-in-time (JIT) a production strategy that strives to improve an business' return on investment by reducing in-
processinventory and associated carrying costs. Just In Time production method is also called the Toyota Production System, as
defined at http://en.wikipedia.org/wiki/Just-in-time_(business), last accessed May 2011.
3
The entrepreneur is looking into the possibility of applying for up to 75% EU co-financing under the Tourism and Support Services
Training Programme (Merhba), which is being advertised at https://secure2.gov.mt/TSDU/tourism_support_services, last accessed
May 2011.

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Market analysis
An estimated 25% of the Maltese economy depends on the touristic sector4, and, the
entrepreneur envisages that an inflow of tourists in the summer season (June 2011 to
September 2011) makes the business “right on time” for the high season.
Marketing research is required to quantify competitors and the current market share.

Strengths Opportunities
 Flexibility and competitive pricing  Accessories are perceived to be
can be provided by way of mutual popular in concerts and events
supplier and customer relationships organised in Malta
Weaknesses Threats
 Dis economies of scale5  Global recession of 2008-2009
 Local and international competition
through online marketing

Viral marketing, networking, and, social media shall be the main channels used to
advertise services provided.
Human capital analysis
For the time being, the entrepreneur intends to venture into setting up a one-person
business – thus a micro-enterprise6, and business growth is perceived to be one of the
performance indicators which would necessitate further recruitment, outsourcing, and/or
sub-contracting.
Feasibility and viability shall be assessed by the entrepreneur on a task by task basis,
particularly during start-up operations in the medium term.

4
As quoted on http://www.nso.gov.mt/site/page.aspx?pageid=56, last accessed May 2011.
5
Diseconomies of scale are the forces that cause larger firms and governments to produce goods and services at increased per-unit
costs, as defined at http://en.wikipedia.org/wiki/Diseconomy_of_scale, last updated 22.04.2011.
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A micro-enterprise is a type of small business, defined by the European Union as those (businesses) that meet 2 of the following
criteria:
 has less than 10 employees,
 has a balance sheet total of less than €2M, and,
 a turnover below €2M.
The above information is available at http://en.wikipedia.org/wiki/Micro-enterprise.

Within the Maltese Islands, the Malta Enterprise (http://www.maltaenterprise.com/ is responsible for attracting inward
investment and supporting enterprises. Commission recommendation 2003/361/EC concerning the definition of micro, small, and,
medium-sized enterprises, is available online at http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?
uri=OJ:L:2003:124:0036:0041:EN:PDF, which builds upon Commission Recommendation 96/280/EC concerning the
definition of small and medium-sized enterprises, available online at http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31996H0280:EN:HTML.
Independent legal advice is shall be undertaken by the entrepreneur.

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Strategy and implementation summary
In order to benefit from limited liability, the entrepreneur intends to set up a company,
however, may initially act as a sole trader, accepting unlimited liability for business affairs
on his personal accounts.
The entrepreneur shall pursue opportunities for business networking, in order to create
collaborative ventures for ad-hoc projects or outsourcing of ongoing business as required.
Accounting, administration and management of the affairs of the business, will be carried
out assuming that the business is a going concern, and, accounts and organisation of the
assets related to the business shall be kept separately from the personal affairs of the
entrepreneur7.
The business shall operate from the entrepreneur's current residence in Birkirkara, Malta,
and is not perceived to relocate, since the required information will be hosted within a
location that is commonly accessible from any location with access to the Internet.
It is not possible to forecast sales and revenue streams at this stage, however, the
entrepreneur has to ensure that the rate of return and cash inflows are adequate to sustain
his personal lifestyle, and, ensure that the business is feasible in the medium to long term.
Sales and revenues will be based on the orders and contracts attained by the
entrepreneur8.

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Although independent legal and business consultancy advice is planned to be undertaken, the Companies Act 1996 – available
online at http://www.commonlii.org/mt/legis/consol_act/ca107.pdf, which outlays the options available for business
organisation licensed by the Malta Financial Services Authority (http://www.mfsa.com.mt/pages/default.aspx), and
supported by Malta Enterprise (www.maltaenterprise.com), as per note 6.

Occupational Health and Safety Issues are regulated by the Occupational Health and Safety Authority
(http://www.ohsa.org.mt). The entrepreneur has attended basic courses in Health and Safety, and, will ensure to be compliant
with regulations that are published from time to time by the Occupational Health and Safety Authoriity, of 17, Edgar Ferro street,
Pieta', Malta (EU).

The entrepreneur shall register as appropriate with the Department of Inland Revenue (www.ird.gov.mt), Department of VAT
(www.vat.gov.mt), and, apply for a Trading License with the Trade Services Directorate, register for import and export licenses as
required, and, submit the required statistics, reports and comply with the regulations established by the above government
departments.
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Business templates for contracts, and, other business forms are to be drafted and reviewed by a
professional legal advisor as deemed appropriate by the entrepreneur, and/or might be required in order
to comply with regulations issued by the Malta Enterprise (http://www.maltaenterprise.com), which is
being perceived as a “one-stop shop” point of contact for the entrepreneur.

The entrepreneur, shall make reference to the Business Promotion Act 1988, and, any relevant legal
notices (available at http://www.commonlii.org/mt/legis/consol_act/bpa247.pdf) in exercising due diligence
in case of disagreements.

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Start-up funding
The entrepreneur has limited financial capacity at the moment, and, will take up business
when it is deemed appropriate, depending on the viability of orders and/or contracts
attained during start-up.
The entrepreneur intends to recur to financial institutions in order to support contracts
attained by way of securing overdraft facilities, credit reference checks on customers
which provide substantial sales order(s) and/or contracts. The entrepreneur considers
orders and contracts exceeding €1,000 as substantial.

Trade terms and conditions

A deposit of 10% on the actual or estimated value in €s shall be collected upfront on
orders for items held in stock.
A deposit of 25% shall be collected upfront for orders not held in stock
All orders will be expected to be settled upon delivery.
Credit terms shall be allowed to customers who are deemed reliable, although initially cash
shall be receivable for any of the services provided as agreed within the sales orders
and/or contracts between the entrepreneur and the customer(s).
The entrepreneur shall seek to establish favourable trade finance, for example by ensuring
that the credit days allowable by creditors, match the date by which the ordering customer
settles the order.