BUSINESS PLAN

LECTURERS NAME : DR NOOR FADHIHA BT

OTHMAN


To serve UMT students by selling their
need and want.
To earn higher profit by attract more
customers.
To become the largest shop in UMT.
To be first choice of shop for UMTs
students.






OBJECTIVES








We are using five main strategies as the key of success:
Trained a team of effective worker to give the best
services to our customers.
Manage the inventories effeciently by close monitoring
waste.
Always ensure that our stocks in high qualities.
Set the location of business in the strategic place.
Ensure that our image of our business always in the high
level.
KEYS TO SUCCESS

Rakan Enterprise is a new business in
University Malaysia Terengganu (UMT). Our
shop located in front the hostel UMT. Our
shop provide such as stationery, daily
necessities, food & drinks and some services.
We want to give our service to UMT students
by selling product they need. Therefore, our
shop hope can attract more customers and
earn higher profit.
EXECUTIVE SUMMARY

Rakan Enterprise is a partnership that
own by four partners include Tuan Farah
Farhana, Yee Juet Reen, Ariesha Nur
Azreen and Tan Hui Yin. We are sharing
our own experince and ability during
forming our grocery shop.
COMPANY
OWNERSHIP

Rakan Enterprise start up cost is amount
RM30,950. It has including:
Legal RM1,800
Insurance RM200
Rent RM120
Other RM80
Cash Required RM10,000
Start-up Inventory RM3,500
Other Current Assests RM2,000
Long Term Assests RM5,000


START-UP SUMMARY

Product and service
Pen and foolscap paper
Detergent , soap,
toothpaste, toothbrush ,
etc.
Snacks , soft drink ,
breads , yogurt , biscuits
, maggie , ice cream,
etc.


PRODUCT AND
SERVICE
We are providing the
computer services ,
photostat services , and
top-up mobile phone
services. Examples of
service including:

1. Online and printing service
2. Photostat in colour or black
and white
3. Top-up to all network

FOOD AND
DRINKS
BREADS
ABOVE RM 0.80 (depend
types)
BISCUIT
ABOVE RM 1.50 (depend types)
DRINKS
ABOVE RM 1.80 (depend types)
STATIONERY (depend types)
SERVICES PHOTOSTAT RM 0.10 PER PRICE
PRINTING RM 0.15 PER PRICE
TOP-UP ABOVE RM 5.00
PRODUCT AND SERVICE
DESCRIPTION

LOCATION AND FACILITIES
-Rakan Enterprise is located at UMT. We set our shop in front
of the UMTs student hostel. We have some stand to put our
products. Besides that, the wholesaler or supplier are suppling
the refrigerator for us to keep their drinks products. We also set
a counter for our cashier

PERSONNEL PLAN
- Our grocery is form by 5 people. We are including one owner,
three partners and one worker. Four of us are all students in
UMT. We are discuss to start a own business but since lack of
capital, so we decide to become partners in the business. We
will share the profit that we get. We will not taking the salary
from our business.

.


OPERATIONAL PLAN

MANAGEMENT SUMMARY
-Rakan Enterprise have a very simple management
because we have only one employee. Size of our shop
is small and we dont need too much of workers. We
will only hire those worker which are responsibility and
independent. We need an independent worker can
facing unexpected problems. Therefore, he/she know to
handle the problem.
-The arrangement for the product will arrange by types
on products.
OPERATIONAL PLAN

YEE JUET REEN
PRESIDENT
TUAN FARAH FARHANA
MARKETING
MANAGERS
TAN HUI YIN
OPERATIONAL
MANAGER
ARIESHA NUR AZREEN
FINANCIAL
MANAGER
ORGANIZATIOANAL
CHART

Four of us are all students in University Malaysia
Terengganu. We are discuss to start a own business
but since lack of capital , so we decide to become
partners in the business. Our total capital is
RM24,000 and each person is RM6,000.


MANAGEMENT
TEAM

Rakan Enterprise is lack of the perfect manage system of
inventory. Therefore, our inventory management was
unefficiency . We using the normal system to record all
the purchases and sales inventory every month. We keep
all the invoice for purchases and sales.
We are trying to use computer database system to
overcome this problem. We try to learn the way to record
the flow of inventory every day into database. That is
more accuracy and efficiency to record our inventory. We
also can make sure our inventory always in correct
quantity. We can see more clear and easy to make
analysis about our business performance.
MANAGEMENT TEAM GAPS

Our products and services are more depends on the
needs of universitys students because they are our
major customers.

We also expect that the university students will
purchase in our shop is around 21600 people in the
first year. Besides that maybe have 9000 staffs will
purchase in our shop the first year. Visitor are the
minor segment. We expects that the visitors is just
around 5400 people will purchase in our shop for the
first year.
MARKETING PLAN


Helpful Harmful

Internal origin Strength:
Shared risks
Shared knowledge and
expertise
Longer business hour

Weakness:
Does not have a systematic
system
Not enough capital

External origin Opportunity:
Market presence Synergy
potential customer
economy stable
Threat:
Incompatibility of partners
Limited access to
information
Competitive with others
competitors
SWOT ANALYSIS

We are targeting UMT students as our main target
customers. It is because they are the large amount
customers that will purchase in our shop.

The other groups such as the UMT s staff and visitors
are not always purchase in our shop. That is because
they are not always come to our shop area. Therefore,
we does not put a high expectation to the staffs and
visitors of University Malaysia Terengganu.
TARGET MARKET
SEGMENTATION

Our main marketing strategy is to satisfy customers
by provide different types of products and services.
Our second marketing strategy is segmentation
strategy. We need to know our main customers are
students in UMT, we need to do some researches
that what actually they need. We will distribute some
brochures for our shop to become the 1
st
choice
when students think of grocery shop.
MARKETING STRATEGY
Seen our grocery shop Rakan Enterprise are a small
business and we are just a university students, we does
not have a large capital to make a large business.
Therefore, in around three years, we are possibility not
to make any distributions.
Pricing strategy
We try to caught the loyalty of customers, so we try to
set a fair and good prices for the customers. We set the
profit as the 40% or below from the direct cost. It is not
too high for customer and it is enough us to get the
profits from the sales.
Distribution strategy
Rakan Enterprise are doing the start-up promotion
for 5 days to attract new customers. We will give the
30% for the customer who purchase in our shop for
first three hours. Later the promotion will be 10%
discount for whole day.

Promotion strategy

YEARS 2013 2014 2015
RM RM RM
Food and drinks 25,730.00 31,000.00 34,590.00
stationery 18,200.00 20,000.00 22,890.00
Printing and Photostat services 17,010.00 20,000.00 21,000.00
Top-up services 27,410.00 32,400.00 33,800.00
Total sales 88,350.00 103,400.00 112,280.00

Direct Cost of Sales
Food and drinks 11,765.00 13,780.00 14,890.00
stationery 6,840.00 8,900.00 9,400.00
Printing and Photostat services 6,100.00 7,590.00 8,130.00
Top-up services 14,250.00 15,980.00 16,980.00
SUBTOTAL DIRECT COST OF
SALES 38,955.00 46,250.00 49,400.00
SALES FORECAST


Our grocery shop are expect to grow in the rate of
20% for the total profits every years. We try to
improve as many as possible in our quantity and
quality of products and services. It may help us to
attract more customers to purchase in our shop.
FINANCIAL PLAN

Start-up Funding
RM
Start-up Expenses to Fund 1,400.00
Start-up Assets to Fund 22,600.00
Total Funding Required 24,000.00
Assets
Non-cash Assets from Start-up 12,600.00
Cash Requirements from Start-up 10,000.00
Cash Balance on Starting Date 10,000.00
Total Assets 32,600.00
Capital
Owner 6,000.00
Investors 18,000.00
Total Planned Investment 24,000.00
Loss at Start-up (Start-up Expenses) (1,400.00)
Total Capital 22,600.00

Total Funding 24,000.00
START-UP FUNDING

Pro Forma Cash Flow
2013 2014 2015
RM RM RM
Cash from Operations
Cash Sales 88,350 103,400 112,280
Subtotal Cash from Operations 88,350 103,400 112,280

Expenditures from Operations
Cash Spending 6,000 6,600 7,200
Bill Payments 68,836 85,119 93,201
Subtotal Spent on Operations 74,836 91,719 100,401

Net Cash Flow 13,514 11,681 11,879
Cash Balance 23,514 35,195 47,075
PROFIT AND LOSS
2013 2014 2015
RM RM RM
Sales 88,350 103,400 112,280

Direct Costs of Goods 38,955 46,250 49,400
Other Costs of Goods 25,000 30,000 35,000
Total Cost of Sales 63,955 76,250 84,400

Gross Margin 24,395 27,150 27,880
Gross Margin % 27.61% 26.26% 24.83%
Expenses
Payroll 6,000 6,600 7,200
Marketing/Promotion 500 500 500
Rent 1,440 1,440 1,440
Utilities 1,200 1,200 1,200
Insurance 2,400 2,400 2,400
Payroll Taxes 645 840 720
Other 960 960 960
Total Expenses 13,145 13,940 14,420
Profit Before Interest and Taxes 11,250 13,210 13,460
EBITDA 11,250 13,210 13,460
Taxes Incurred 1,125 1,453 1,615
Net Profit 10,125 11,757 11,845
Net Profit/Sales 11.46% 11.37% 10.55%
Pro Forma Balance Sheet
2013 2014 2015
RM RM RM
Current Assets
Cash 23,514 35,195 47,075
Inventory 3,545 4,209 4,496
Other Current Assets 3,200 3,200 3,200
Total Current Assets 30,259 42,604 54,771
Long-term Assets
Long-term Assets 5,400 5,400 5,400
Total Assets 35,659 48,004 60,170
Current Liabilities
Accounts Payable 2,934 3,522 3,843
Total Liabilities 2,934 3,522 3,843
Capital
Paid-in Capital 24,000 24,000 24,000
Retained Earnings -1,400 8,725 20,482
Earnings 10,125 11,757 11,845
Total Capital 32,725 44,482 56,327
Total Liabilities and Capital 35,659 48,004 60,170
Net Worth 32,725 44,482 56,327

THANK YOU