Business Startup

I Love Novel Rental Shop
BUSINESS PLAN
TABLE OF CONTENT
1. INTRODUCTION.2
2. PURPOSE OF BUSINESS PLAN....3
3. COMPANY BACKGROUND.4
4. PARTNERSHIP BACKGROUND..................................................................5-8
5. LOCATION OF BUSINESS.....9-10
6. ADMINISTATIVE PLAN.11-17
7. MARKETING PLAN....18-26
8. OPERATION PLAN27-33
9. FINANCIAL PLAN..34-38
10. CONCLUSION..43
LIST OF FIGURE
Figure 5.1 location of business....12
Figure 6.1 organization chart...14
Figure 7.1 before market share25
Figure 7.2 after market share26
Figure 8.1 operation layout30
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BUSINESS PLAN
Figure 8.2 activity chart of I Love Novel shop31
Figure 8.3 activity chart of I Love Novel online..32
Figure 8.4 process flowchart of I Love Novel shop...33
Figure 8.4 process flowchart of I Love Novel online.34
LIST OF TABLE
Table 3.1 company background.....7
Table 6.1 manpower planning..15
Table 6.2 task and responsibilities.16-17
Table 6.3 schedule of remuneration...18
Table 6.4 list of equipment19
Table 6.5 administration budget...20
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BUSINESS PLAN
Table 7.1 competitor analysis...24
Table 7.2 sales forecast.27
Table 7.3 marketing budget.........29
Table 8.1 operation budget...36
ACKNOWLEDGEMENT
Bismillahirrahmanirrahim.
First of all, I am very grateful to Allah S.W.T for His blessings. I would to give a
special thanks to my lecturer, Prof Dr. Habrizah Hussin for the supervision and support that
she had gave. With her guidance, it really helps me in the progression of the business plan.
Besides that, all tasks during the development of this paper work would be nothing without
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BUSINESS PLAN
her help. Not forget, a big thank to the friends whos had help a lot in completing the final
year system.
Last but not least, thank you to my family member especially my parents. They
always supporting me especially in financial matter. May Allah bless all of us and only He,
the Almighty could repay all my debts to those whos had gave me a helps.
EXECUTIVE SUMMARY
I Love Novel shop is a novel rental business. The novels that offered is Malay novel
and English novel. The purpose of running this business is to support the hobbies of reading
novel and to help to saving peoples money from buying a novel. The concept of I Love
Novel rental business is customer need to pay the exact price of the rent novel. When they
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BUSINESS PLAN
return back the novel, the balance of payment will return to customer because the rental
price is only rm5 per book.
The market target of I Love Novel shop is among of fully housewife, teenagers or
students, and also career woman. Generally, the category of people that like to spent time
with reading the novel is the female. That why the shop is open at strategic area which is at
Taman Permaisuri, Cheras. The location of shop is nearer to housing area and school. The
business of I Love Novel shop is own by Nurnabilah and the form of this business is
partnership. Besides be a partnership, they also take a part in handle the business and they
have their own expertise in marketing, financial, and operation.
1.0
INTRODUCTION
I Love Novel shop is a novel rental business. The idea of this kind of business is
based on the hobby of reading and gather the novels. Because of too much novels that
have been collected, so existence of idea to open a novel rental business. This business
are offering 500 local writers work like Norhayati Ibrahim, Fauziah Ashari, Sharifah Abu
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BUSINESS PLAN
Salem and Ramlee Awang Murshid to help the fans especially group of housewives to
read the novel in as low as RM5 per novel.
The concept of this business is customer need to pay the exact price of novel then
when they return back the novel the change of money will return. For example if the price
of novel is RM25, the customer need to pay RM25. Then when they return the novel, the
change of money is RM20. It is because the price of rental is RM5.
Even though the profit of this business not too much, but it give a self-satisfaction to
a person that love to read a novel. It is because when doing a business like this will
attract public to be more interest in reading. I Love Novel shop has 4 members who
manage and run the business plan. Each of them is appointed base on their experience
and skills such as General Manger, Marketing Manager, Finance Manager and Operation
Manager.
I Love Novel shop is located at 42-G, Danau Lumayan Business Park, Jalan Danau
Lumayan 1, Tasik Permaisuri Cheras. The location is chosen because it is a strategic
place and near to housing area. When the shop is opened near to housing area,
definitely many housewives and youth that like to read a novel. Because of that, the
novel rental business surely get the positive feedback.
1.1 INDUSTRY PROFILE

I Love Novel shop is a rental service business. Nowadays, too many new
business in the market sector such bakery, laundry, caf, and so on. So to make
the business is uniqueness from other business, the owner had decide to open a
novel rental shop. Besides, this kind of business is rarely exist in market sector.
The concept of this business is to help the people whose love to read a novel
without need to spend a lot of money for buy a novel. This main activity of novel
rental is similar to textbook rental. By having this novel rental, customer need to
pay the novel price. Then when they return back the novel, the worker will give
the balance of payment because the rental price is only RM5.
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The problems that may face during run this business, the annual profit of
novel rental is not too much. It is because the price of each novel for rental just
only RM5. In addition, not everyday people will come to rent a novel and not all of
them like to spend the time with reading a novel. But, the owner will try to do an
enhancement for attract more customers for get the novel rental services.
1.2 FUTURE PROSPECT OF BUSINESS

To make sure the business is get the support from people and to maintain in
the market sector, owner has think and apply a strategy for attracting more
customer. In future, I Love Novel shop may be combine a novel rental services
and caf. While the customer stay and read the novel, they can having a slice of
cake or a cup of coffee. In addition, I Love Novel shop has decide to develop the
business outside Cheras areas. I Love Novel shop also can do a promotion once
a month such rent 5 novel at a time will get free one slice of cake. Furthermore, I
Love Novel shop want create online service. Which means the customer no need
to go to the shop for rental. Customers also can read the novel through online.
The concept of novel online is the customer can read the novel for free for one
month then they need to subscribe for continuing read the novel.
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BUSINESS PLAN
2.0
PURPOSE OF BUSINESS PLAN
a. To map the future

- With having a business plan, it not just required to make a funding, but it also a
vital aid to help in manage business more efficiently. By committing the ideas to
the business plan, founder can understand the business better. A plan can detail
alternative future scenarios and set specific objectives and goals along with the
resources required to achieve these goals.
b. To attract financing
- The important reason why need a business plan is to attract the investors by
putting statistics, facts, figures and detailed plans of the business. When the
investors read and understand the business plan, it will attract investors to give a
fund to a new business idea.
c. To create a new business

- With use of a business plan, it is to establish the right steps to starting a new
business, including what you need to do, what resources will be required, and
what you expect to happen.
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BUSINESS PLAN
3.0
COMPANY BACKGROUND
Name of the company
I Love Novel shop
Business address
42-G Danau Lumayan Business Park, Jalan

Danau Lumayan 1, Tasik Permaisuri, Cheras.
Correspondence Address
(include website/e-mail address)
Website : www.ilovenovel.com
E-mail : ILoveNovel@gmail.com
Telephone Number
Tel no: 03-91712412

Fax no: 03-91712410
Form of Business
Partnership
Main activity
Novel rental
Date of commencement
March 2016
Date of registration
October 2015
Registration no.
000276328-F
Name of bank
Maybank
Bank account no.
2532-8220319-24-7
Table 3.1 company background

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BUSINESS PLAN
4.0
PARTNER BACKGROUND
Name: NURNABILAH BINTI ABDOL RASIP

IC Number: 901224-14-5660
Permanent Address: 33-03-16 Flat Sri Johor, Jalan Cheras, 56100 Kuala Lumpur.
Telephone Number: 012-3731224
Date of Birth: 24/12/1990
Age: 25 years old
Sex: Female
Marital Status: Single
Academic Qualifications: master in business strategic
Skills: able to make business strategy and able to conduct people
Experience: 10 years in human resource development hong leong bank
Present Occupation: General Manager
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Name: ANIS SOFEA BINTI HARRUN

IC Number: 890920-14-5838
Permanent Address: Blok 9-12-9 Taman Miharja Fasa 2 Batu 2 Cheras 55100 Kuala
Lumpur.
Date of Birth: 20 september 1989
Age: 26 years old
Sex: Female
Marital Status: Engaged
Academic Qualifications: Degree in accounting
Skills: good in Microsoft words, communication and calculating
Experience: assistant manager, Sime Darby
Present Occupation: Finance Manager
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BUSINESS PLAN
Name: MOHAMMAD AIMAN BIN SULAIMAN

IC Number: 870331-14-6648
Permanent Address: No 8, Jalan 11, Taman Sri Tanjung, 43500 Semenyih, Selangor.
Date of Birth: 31 March 1987
Age: 28 years old
Sex: Male
Marital Status: married
Academic Qualifications: Degree In Business Management
Skills: fluent in English and Bahasa Melayu
Experience: Sales Assistant at ASTRO Company
Present Occupation: Marketing Manager
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BUSINESS PLAN
Name: ARIF ZAKUAN BIN DANIEL

IC Number: 920426-04-5058
Permanent Address: 407 Block D 14 Wangsa Maju Seksyen 1 Setapak 53300 Kuala
Lumpur.
Date of Birth: 26 April 1992
Age: 23 years old
Sex: Male
Marital Status: single
Academic Qualifications: Degree in Office Management
Skills:
influence
in
English
and
bahasa,
able
to
handle
workers,
good
in
communication.
Experience: 5 years experience in HR assistant at PERKESO
Present Occupation: Operation Manager.
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BUSINESS PLAN
5.0
LOCATION OF BUSINESS
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Figure 5.1 location of business

The location of I Love Novel shop was located at Bandar Sri Permaisuri. The reason
of founder choose the location is because the place is strategic. I Love Novel shop is
placed near to housing area. With nearer to housing area, the profit of I Love Novel will
increase because usually the person that like to read the malay novel is youth and
housewives. Besides that, based on studies that was done, the housing area that placed
in Bandar Sri Permaisuri majority are Malay. So it is a good business plan for open the I
Love Novel shop at Bandar Sri Permaisuri. In the picture above, it is the location that I
Love Novel shop will be operated. As mentioned, the address of I Love Novel shop will
located at 42-G, Danau Lumayan Business Park, Jalan Danau Lumayan 1, Tasik
Permaisuri Cheras.
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BUSINESS PLAN
6.0
ORGANIZATIONAL PLAN
Organization plan is a process of identifyings immediate and long-term objectives.

Besides, the organization plan is to formulating and monitoring specific strategies to
achieve them. Organizational plan is one of the most important tasks of business
management since it provides consistent guidance and action plan to be follow.
6.1 MISSION STATEMENT
MISSION
To help the people who love to read the novel without need to use a lot of
money to buy the novel.
6.2 ORGANIZATIONAL CHART
GENERAL
MANAGER
FINANCE
EXECUTIVE
MARKETING
EXECUTIVE
OPERATION
EXECUTIVE
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BUSINESS PLAN
2 DESPATCH
BOY
1 FINANCE
CLERK
2 GENERAL
WORKER
Figure 6.1 organizational chart
6.3 MANPOWER PLANNING

It important to include a list of all the staff positions and it is a best way to present
the positions and number of people for each position to facilitate easier
understanding.
POSITION
General Manager
NUMBER OF STAFF
1
Finance Executive
Marketing Executive
Operation Executive
Finance Clerk
General Workers
Despatch Boy
Table 6.1 manpower planning
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6.4 TASKS AND RESPONSIBILITIES

For task and responsibilities is to describe the tasks of each employees position
such as general manager, financial executive, marketing executive, operation
executive, financial clerk, general worker, and despatch boy.
POSITION
General Manager
MAIN TASKS
To make sure the business run smoothly.
Perform
regular
administration
and
management activities of the corporation.

Plan and monitor the strategic progress of
the business.
Managing cost control.
Do a preparation and content of all financial
documents.
Ensure individuals
are
focused
on
achieving team goals.

Operation Executive
Manage and direct operation team to
achieve business targets.

Ensure tram members follow standard
operating procedures for all operational
functions.
Support operational risk and audit process
for the purpose of preventive maintenance.

Assist in developing operating and capital
budgets.
Finance Executive
Do a preparation of monthly management
account schedules.
Producing
ad
hoc
reports
and
reconciliations as required by the Finance
Manager.
Overseeing
the
invoice
and
payment
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BUSINESS PLAN
Marketing Executive
processing.
Analysing the capital expenditure additions
in the month.
Provide marketing resource assistance to
entire sales staff, management team, and
Finance Clerk
sales manager.
Analysing and investigating price, demand,
and competition.
Do a promotional activities.
Organising events and product exhibitions.
Managing campaigns on social media.
Perform related clerical duties like word
processing,
filing,
faxing,
photocopying.
Prepare and
process
bills,
and
invoices,
account statements, and others financial

statement using computerized and manual
systems.
Record all cheques.
Maintain updated vendor files.
Maintain a filing system for all financial
documents.
General Worker
Despatch Boy
Make sure the preemies always orderly
and tidy.
Assist the customers in finding the related
novels.
Fill up the novel rental form
Handling the tasks at cashier counter
Delivery the novel to customer house

Pick up the novel if the customer do not
return back the novel.
Table 6.2 tasks and responsibilities
6.5 SCHEDULE OF REMUNERATION

The purpose of remuneration schedule is to list the salary and wage structure for
each position. Additionally, it should include the contribution that a company has
to allocate to different provident funds like EPF and SOCSO.
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BUSINESS PLAN
Position
No.
Finance
Monthly
EPF
SOCSO
Amount
Salary (RM)
Contribution
(2%) (RM)
(RM)
2,300
Finance Clerk
1,000
Marketing
(13%) (RM)
299
46
2,645
130
20
1,150
2,300
299
46
2,645
2,300
299
46
2,645
1,000
130
20
1,150
900
117
18
1,035
Executive
Executive
Operation
Executive
General
Worker
Despatch Boy
Table 6.3 schedule of remuneration
6.6 LIST OF OFFICE EQUIPMENT

A list of office furniture and equipment is necessary to facilitate layout planning
and budget considerations.
ITEM
QUANTITY
PRICE/PER UNIT
TOTAL COST
Book Rack
4 sets
(RM)
450
(RM)
1,800
Personal Computer
1 unit
2,000
2,000
Cashier Machine
1 unit
400
400
Desks
1 units
350
350
Telephone
1 units
150
150
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BUSINESS PLAN
Office Chair
2 units
200
400
Coffee Table
2 units
250
500
Sofa
2 sets
3,000
6,000
Table 6.4 list of equipment
6.7 ADMINISTRATION BUDGET

In order to facilitate the overall financial planning of the business, all costs under
every section of the business plan need to be summarised under the relevant
section.
Furniture and Fittings
FIXED ASSETS
MONTHLY
OTHER
EXPENSES
EXPENSES
EXPENSES
(RM)
11,600
(RM)
(RM)
Salaries
8,000
Rental
4,000
Rental Deposit
Utilities
8,000
1,000
Table 6.5 administration budget
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BUSINESS PLAN
7.0
MARKETING PLAN
Marketing plan is a written document that describing the strategy of business.
Marketing plan is the part of the business plan outlining the market strategy for a product
or service. Besides that, the content that include in marketing plan is such as the
information of product or service offered, pricing of product, target market, competitors,
marketing budget and many more. In addition, a marketing plan should be implemented
during do a business plan because it very helpful in raise the company profit.
7.1 SERVICE DESCRIPTION
I Love Novel shop is a business that offered a novel rental service. The type
of novel that be rent is such as English novel and Malay novel. The purpose of
doing this business is to help the people who love to read the novel without need
to use a lot of money to buy the novel. By having this kind of business, people
who love to read a novel no need to spent a lot of money for buying a novel but
she/he can only go for rent a novel. Besides go to the shop for novel rental, we
also provide a service such novel delivery. The customer only required to do a
phone call and inform the title of the novel then we will send the novel to
customers home. But, the novel delivery just provided in Cheras area.
The concept of this business is customer need to pay the exact price of novel
then when they return back the novel, the change of money will return. For
example if the price of novel is RM25, the customer need to pay RM25. Then
when they return the novel, the change of money is RM20. It is because the price
of rental is RM5. But, if they do not return the novel, the money that had pay will
burn.
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BUSINESS PLAN
7.2 TARGET MARKET

Target market is a target customer who have the same hobbies, interests, and
needs. Identifying the target market is an essential step in the development of a
marketing plan. In addition, target market can be separated from the market as a
whole by geography, buying power, and demographics. I Love Novel shop has
target several categories of customer and the group of customers is as followed:
7.2.1
FULL-TIME HOUSEWIFE
According to the analysis, most of Malay housewife would like to
spend their free time with reading a novel. These people like to spend
their time by reading the novel rather than read the magazines.
However, the other races also have same hobbies which read a novel.
7.2.2
TEENAGERS
Usually, the teenagers are likely to read a love novel. In this average
of ages, the teenagers are learning the meaning of love. Because of
that, this young people love to read a novel because while reading
they can imagine the story line.
7.2.3
CAREER WOMAN
A career woman also have an interest in reading a novel. By reading
the novel, it will help the career person in reducing the stress at
working place. In addition, with reading novel help a lot the career
person from thinking the working matters.
7.3 MARKET SIZE

Market size is refer to the number of buyers and sellers in a particular market.
This
is
especially
new product or service,
important
since
for companies that
wish
small markets are less likely
to
to launch a
be
able
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BUSINESS PLAN
to support a high volume of goods. By having this market size, large markets
could bring in more competition.
I Love Novel shop is located at Taman Permaisuri, Cheras. The location of
shop is so strategic because it nearer to school areas and housing areas. The
target customer of I Love Novel rental business is such students or teenagers,
career woman, and also fully house-wife. Mostly the teenagers like to read a
Malay love novels rather than others.
At Taman Permaisuri, Cheras there are more than 30,000 housing units. The
calculation of market size I Love Novel will be calculate as below:
No of population
40,000
10%
rental
Assumption
of
Market
service
novel rental per
per
4,000
day (RM)
5xRM5=RM25
(RM)
750
size
month
Market size per

year (RM)
9,000
7.4 COMPETITOR ANALYSIS
COMPETITOR
Pick-A-Book
STRENGTH
WEAKNESS
Have a website for

view
the
titles
of
The price of novel

rental is expensive.
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BUSINESS PLAN
novel.
Provide a novel-caf
Do not provide novel

delivery.
concept.
AHM store
Provide
novel
delivery.
Just offering a Malay

novel.
The
location
of
business is at home.
Dunia Domoku
Offer an online novel
Do not provide a
booking.
Provide variety
shop.
Delivered the novel
of
novels.
through post.
Table 7.1 competitor analysis
7.5 MARKET SHARE

Market share is refer to the portion of market controlled by a particular company.
Besides that, market share is the percentage of business or sales a company
wields out of total business or sales by all competitors combined in any given
market. Market share also is one of the primary indicators companies use to
measure how well they are doing versus competitors.
7.5.1
BEFORE I LOVE NOVEL ENTER THE MARKET

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BUSINESS PLAN
Sales
Pick-A-Book
Adiqfi Hannah Marsya
Dunia Domoku
25%
30%
45%
Figure 7.1 market share before I Love Novel take place
Before I Love Novel take place in the market share, the biggest
percentage in the market is Adiqfi Hannah Marsya which is 45%. It is
because AHM is the first company that practising novel rental
business. Followed by Dunia Domoku which is 30% and the last is
Pick-A-Book Company which take a part for 25%.
7.5.2
AFTER I LOVE NOVEL ENTER THE MARKET
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BUSINESS PLAN
Sales
Pick-A-Book
Dunia Domoku
Adiqfi Hannah Marsya
I Love Novel
2%
23%
45%
30%
Figure 7.2 market share after I Love Novel take place
Because of I Love Novel shop is a new business, the market share is

only 2%. I Love Novel cannot take more percentage in market share
because ILN is a new business and not well-known by customers. In
addition, ILN need to be compete with other competitor for get a more
percentage.
7.6 SALES FORECAST
Month
Quantity Sold
Malay
English
Price per unit (RM)

Malay
English
Novel
Novel
Novel
Total
Sales
Forecast (RM)
Novel
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BUSINESS PLAN
January
20 books
10 books
20x5=100
10x5=50
150
February
25 books
20 books
25x5=125
20x5=100
225
March
20 books
10 books
20x5=100
10x5=50
150
April
20 books
5 books
20x5=100
5x5=25
125
May
25 books
15 books
25x5=125
15x5=75
200
June
40 books
25 books
40x5=200
25x5=125
325
July
10 books
10 books
10x5=50
10x5=50
100
August
20 books
10 books
20x5=100
10x5=50
150
September
30 books
15 books
30x5=150
15x5=75
225
October
50 books
20 books
50x5=250
20x5=100
350
November
40 books
25 books
40x5=200
25x5=125
325
December
55 books
15 books
55x5=275
15x5=75
350
Table 7.2 sales forecast
7.7 MARKETING STRATEGIES

In doing a business, marketing strategy is so important. Without marketing
strategy, a company cannot promote the products to people. These are four
major of principle that need to be done for promote the business.
7.7.1
PRODUCT
In product, I Love Novel do a novel rental service. For market strategy,
I Love Novel offer a variety of novels included English and Malay
novel. Besides that, I Love Novel proving a service such novel delivery
to customer home.
7.7.2
PROMOTIONS
For promotion, I Love Novel shop distribute through flyers and give the
promotion information to regular customer for them to tell the new
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BUSINESS PLAN
customer. Besides that, if one customer rent for 5 books at the same
time, they will get a free for rent for one extra novel.
7.7.3
PLACE
I Love Novel was choose a strategic place which nearer to school and
resident area. When the shop is nearer to market target place, it
easier to I Love Novel to tackle the customers. In addition, I Love
Novel shop is located at middle of capital centre.
7.7.4
PRICING
In pricing, I Love Novel provide a minimum price of rental which is only
for rm5 per book. In certain novel rental business, they offered rm8
per rental. To compete with other competitors, I Love Novel should
offer a better price and good service.
7.8 MARKETING BUDGET

The purpose of calculate the marketing budget is to summarises all marketing
expenses planned and is useful for financial planning. In marketing budget, all
expenses such as advertisement tools, salaries, and other marketing expenses
must be reckoned.
ITEMS
FIXED ASSETS
MONTHLY
OTHER
EXPENSES (RM)
4,000
EXPENSES (RM)
EXPENSES (RM)
Shop rental
Signboard
3,000
Banner
500
Flyer
300
Salary
30,000
Commission
5,000
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BUSINESS PLAN
EPF/SOCSO
2,000
Promotion
8,000
Grand Opening
5,000
TOTAL
7,800
37,000
13,000
Table 7.3 marketing budget
8.0
OPERATION PLAN
An operation plan can be defined as a plan prepared by a component of an organization

that clearly defines actions it will take to support the strategic objectives and plans of
upper management. The purpose of operation plan is to produce output through the
transformation process.
8.1 OPERATION LAYOUT
BOO
K
PRAYING
AREA
RAC
K
BOO
K
BOO
RAC
K
K
RAC
K
E
N
T
R
A
N
C
E
TOILE
T
OFFICE
READING
AREA
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BUSINESS PLAN
CASHI
ER
SOFA BED
Figure 8.1 operation layout
8.2 ACTIVITY CHART FOR NOVEL RENTAL
Customer take a look of

novels.
Customers read the
synopsis of interested
novel.
Customer go to counter
for rental.
Customer fill up the
rental form
Worker jot down the
information of novel
rental.
Customer pay for rental
price.
Customer do not return

Customer return the
the novel.
novel.
Worker returning balance

The balance of payment
of payment.
is burn.
Figure 8.2 activity chart of I Love Novel shop
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BUSINESS PLAN
Customer go to I Love
Novel website.
Customers read the
synopsis of interested
novel.
Customer make a call to I
Love Novel shop for
novel rental.
Worker jot down the
information of novel
rental.
Despatch boy will make a
novel delivery to
Customer do not return

Customer return the
the novel.
novel.
Worker returning balance

The balance of payment
of payment.
is burn.
Figure 8.3 activity chart of I Love Novel online
8.3 PROCESS FLOW CHART FOR NOVEL RENTAL
Symbol
Type of Activity
Operation
Description
Activities that modify, transform or
gives values to the input
Delay
The symbol is used when in-process

material is restrained in a location
waiting for next activity
Customer take a look of

novels.
Customers read the synopsis of interested
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novel.

BUSINESS PLAN
Customer go to counter for rental.

Customer fill up the
rental form
Worker jot down the information of
novel rental.
Customer pay for rental
price.
Customer return the
Customer do not return the

novel.
The balance of payment is
Worker returning
burn.
balance of payment.
Figure 8.4 process flowchart of I Love Novel shop
Symbol
Type of Activity
Operation
Description
Activities that modify, transform or
gives values to the input
Delay
The symbol is used when in-process

material is restrained in a location
waiting for next activity
Customer open the I Love Novel

website.
Customers read the synopsis of
interested novel.
Customer make a call to I Love Novel shop for
novel rental.
Worker jot down the information of
novel rental.
Despatch boy make a novel
delivery.
Customer return the
Customer do not return the

Page 33 of 46
novel.

BUSINESS PLAN
The balance of payment is

Worker returning
burn.
balance of payment.
Figure 8.4 process flowchart of I Love Novel online
8.4 MATERIAL REQUIREMENT

Material
Malay novel
English novel
Amount Required/Month
100 books
100 books
8.5 OVERHEAD REQUIREMENT

Expenses
Supervisors salary
Shop rent
Utilities
Petty expenses
Costs (RM)
2,000
850
1,700
500
8.6 OPERATION HOURS

The below information show the operation hours of I Love Novel shop. This
operation hours is describe for inform the working hour of I Love Novel shop.
Operation days
Monday
Tuesday Friday
Saturday, Sunday, public holiday
Working hours
Closed
10.00 a.m. 9.00 p.m.
10.00 a.m. 6.00 p.m.
8.7 LICENSE, PERMITS AND REGULATION REQUIRED

Before I Love Novel shop want to start the business, the business should register
to SSM (Suruhanjaya Syarikat Malaysia) first. The fees need to pay for business
registration only for RM100. Besides that, to rent a preemies at Taman
Page 34 of 46

BUSINESS PLAN
Permaisuri, Cheras, I Love Novel shop need to fill up application form for
preemies rental. The related required licenses or permits will be attach at the
appendix.
8.8 OPERATION BUDGET
Furniture and Fittings
FIXED ASSETS
MONTHLY EXPENSES
EXPENSES (RM)
11,600
(RM)
Salaries
8,000
Rental
4,000
Utilities
1,000
Table 8.1 operation budget
Page 35 of 46

BUSINESS PLAN
9.0
FINANCIAL PLAN
A financial plan incorporates all financial data derived from the operating budgets such
as marketing, production or operation, and administrative budgets. Based on financial
data, several pro forma statements namely cash flow, income statement and balance
sheet is created. These statements reflect estimated values based on planning
assumptions rather than actual events.
9.1 PROJECT IMPLEMENTATION COST
A. Capital Expenditure
Land & Building (contributed by owner)
Furniture and Fixtures
Vehicle-van
Renovation cost
Sub-total
RM
30,000
6,000
18,000
4,000
58,000
B. Working Capital (2 months)
Marketing
Production/Operation
Administrative
Sub-total
12,000
C. Other Expenditure
Business registration
Insurance
Licenses
RM
2,000
5,000
5,000
100
200
300
600
Utilities
Sub-total
Grand-total
300
900
70,900
D. Add: Contingency cost (10%)
TOTAL PROJECT IMPLEMENTATION COST
12,500
83,400
9.2 SOURCES OF FINANCING
RM
A. Equity Contributions
Cash
Assets (land & building)
Sub-total
RM
26,000
30,000
56,000
B. External Sources
Page 36 of 46

BUSINESS PLAN
Hire Purchase
Term Loan
Sub-total
15,000
35,000
50,000
C. Others
TOTAL SOURCES OF FINANCE
0
106,000
9.3 PRO FORMA CASH FLOW STATEMENT
B
C
YEAR
Cash Inflow:
Equity cash
Term-loan
Cash sales
Total Cash Flow
Cash Outflow:
Operations Expenditure:
Direct labour
Operations overheads
Marketing Expenditure:
Sales commission
Entertainment allowance
Administrative Expenditure:
Salaries & Wages
EPF & SOCSO
YEAR 1
YEAR 2
YEAR 3
27,000
40,000
100,000
167,000
0
0
130,000
130,000
0
0
150,000
150,000
30,000
23,000
31,000
23,500
32,500
24,300
8,000
3,000
9,000
3,000
9,500
3,000
50,000
10,000
53,000
13,000
55,000
15,000
Page 37 of 46

BUSINESS PLAN
D
E
F
G
Other administrative overheads

Loan Repayment:
Principal
Interest
Capital Expenditure:
Machinery & Equipment
Furniture & Fixtures
Renovation
Pre-operational Expenditure
Deposits
Total Cash Outflow
Cash Surplus/(Deficit)
Beginning Cash Balance
Ending Cash Balance
15,000
17,000
18,000
8,000
4,000
8,000
3,500
8,000
3,000
5,000
8,000
5,000
2,600
800
172,400
20,000
0
35,000
0
0
0
1,800
0
162,800
18,000
35,000
30,000
0
0
0
1,800
0
170,100
23,000
40,000
43,000
9.4 PRO FORMA INCOME STATEMENT

RM
SALES
LESS: OPERATING EXPENSES
Administrative
Marketing
Operation/Production
Interest:
Term loan
Hire purchase
Depreciation charges
Miscellaneous
Total operating expenses
NET PROFIT BEFORE TAX
RM
250,000
95,000
18,000
95,000
4,000
1,500
11,900
2,700
228,100
21,900
Page 38 of 46

BUSINESS PLAN
9.5 PRO FORMA BALANCE SHEET
FIXED ASSETS
Land
Machinery & equipment
Furniture and fixtures
Renovation
Van
CURRENT ASSETS
Cash
OTHER ASSETS
Deposits
TOTAL ASSETS
EQUITY
Capital
Accumulated profit
CURRENT LIABILITIES
LONG TERM LIABILITIES
Term loan
Hire purchase
TOTAL EQUITY AND LIABILITIES
RM
RM
40,000
10,000
5,000
3,000
20,000
78,000
30,000
800
108,800
50,000
9,000
35,000
15,000
59,000
0
50,000
109,000
10.0 CONCLUSION
To develop a business, a business plan is important document for applying a financial
source. The content that need to describe in the business plan is such as introduction of
business, administrative plan, marketing plan, operation plan, and also financial plan.
Page 39 of 46

BUSINESS PLAN
The purpose of creating this business plan is to attract financing. Besides that, to open a
new business, the owner should give the business plan to related parties to read and
give a support to business that implemented.
11.0 APPENDIXES
Page 40 of 46

BUSINESS PLAN
NOVEL RENTAL FORM
NAME
PHONE NUMBER
ADDRESS
QUANTITY OF BOOK
TITLE OF NOVEL
PERIOD OF RENT
DATE OF RENTAL
DATE OF RETURN
TOTAL OF PAID
:
Page 41 of 46

BUSINESS PLAN
MARKET SURVEY QUESTIONNAIRE
Age
Gender
:(
) Male
) Female
Race
:(
) Malay
) Chinese
Level
:(
) student/teenager
) Indian
) housewife
) Working person
Please answers the all questions below.
1. Do you like to read a novel?

( ) Yes
( ) No
2. If yes, what kind of novel would like you read?
( ) Malay
( ) English
3. Which genre of novel that you most like to read?
( ) Romance
( ) Horror
( ) Fantasy
Page 42 of 46

BUSINESS PLAN
4. When you like to spent time to read a novel?
( ) school holiday ( ) every night ( ) on weekends
) during free time
5. Do you prefer to buy or rent a novel?

( ) Buy novel
( ) Rent novel
6. Provide a reason why you prefer to buy/rent?
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
7. Which type and genre of novel do you frequent to read?

Never
Rarely
Often
Malay novel
English novel
Romance
Horror
Fantasy
8. In your opinion, which services are facilitate yourself?

( ) go to the shop for renting
( ) renting through online
9. Suggestion for attract the customer
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Page 43 of 46

BUSINESS PLAN
PREEMIES RENTAL FORM
Page 44 of 46

BUSINESS PLAN
COMPANIES COMMISSION OF MALAYSIA FORM
Page 45 of 46

BUSINESS PLAN
INSURANCE FORM
Page 46 of 46

Business Startup

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I Love Novel Rental Shop

I Love Novel Rental Shop

I Love Novel Rental Shop

I Love Novel Rental Shop

I Love Novel Rental Shop

I Love Novel Rental Shop

1.1 INDUSTRY PROFILE

I Love Novel Rental Shop

1.2 FUTURE PROSPECT OF BUSINESS

I Love Novel Rental Shop

PURPOSE OF BUSINESS PLAN

a. To map the future

c. To create a new business

I Love Novel Rental Shop

Name of the company

I Love Novel shop

42-G Danau Lumayan Business Park, Jalan

Tel no: 03-91712412

Bank account no.

Table 3.1 company background

I Love Novel Rental Shop

Name: NURNABILAH BINTI ABDOL RASIP

I Love Novel Rental Shop

Name: ANIS SOFEA BINTI HARRUN

I Love Novel Rental Shop

Name: MOHAMMAD AIMAN BIN SULAIMAN

I Love Novel Rental Shop

Name: ARIF ZAKUAN BIN DANIEL

I Love Novel Rental Shop

I Love Novel Rental Shop

Figure 5.1 location of business

I Love Novel Rental Shop

Organization plan is a process of identifyings immediate and long-term objectives.

6.2 ORGANIZATIONAL CHART

I Love Novel Rental Shop

6.3 MANPOWER PLANNING

Table 6.1 manpower planning

I Love Novel Rental Shop

6.4 TASKS AND RESPONSIBILITIES

management activities of the corporation.

achieving team goals.

Manage and direct operation team to

achieve business targets.

for the purpose of preventive maintenance.

Do a preparation of monthly management

reconciliations as required by the Finance

I Love Novel Rental Shop

Perform related clerical duties like word

account statements, and others financial

Make sure the preemies always orderly

Delivery the novel to customer house

Table 6.2 tasks and responsibilities

6.5 SCHEDULE OF REMUNERATION

I Love Novel Rental Shop

Table 6.3 schedule of remuneration

6.6 LIST OF OFFICE EQUIPMENT

I Love Novel Rental Shop

Table 6.4 list of equipment

6.7 ADMINISTRATION BUDGET

Furniture and Fittings

I Love Novel Rental Shop

I Love Novel Rental Shop

7.2 TARGET MARKET

7.3 MARKET SIZE