Easy Learning Sdn Bhd

7/29/2019 Easy Learning Sdn Bhd

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A BUSINESS PROPOSAL ON MEDICAL E-BOOK BY

EASY LEARNING SDN BHD

SUBJECT: TECHNOPRENUERSHIP

PRGRAMME: MBBS YEAR 1

LECTERURS NAME: CIK NURULIZA BINTI RASLAN

BOARD OF DIRECTORS OF EASY

LEARNING SDN BHDSTUDENTS NUMBER

MUHAMAD ALEIFF BIN TAJUDDIN 57260212151

MUHAMMAD HIDAYAT BIN AZIZAN 57260212150

AMIR HUSSEIN ABBAS BIN SHAMENAN 57260212153

MUHAMMAD ADAM BIN MD ZAIN 57260212142

MUHAMMAD ALIF SYAKIR BIN ROSLI 57260212154

AHMAD ABDUL HADI BIN KAMAL 57260212124


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TABLE OF CONTENTS

NUMBER CONTENT NUMBER OF PAGE

1

2

3

4

5

6

7

8

9

EXECUTIVE SUMMARY

INTRODUCTION

PURPOSE

COMPANY BACKGROUND

INTRODUCTION

ADMINISTRATION

DEPARTMENT

MARKETING

DEPARTMENT

OPERATION

DEPARTMENT

FINANCIAL DEPARTMENT

4-5

6

7

8

9

10-20

21-26

27-35

36-50


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EXECUTIVE SUMMARY

Our company is Medical E-book, and we are also providing Scholar articles, journals and

reviews (Rental fees for a year), and question bank collection according to each particular

subject. Furthermore, we are also providing service such as E-assignment system. This

product very useful for medical student and doctor and easy to carry at any place. All

material in this disc-base on the best reference books for all medical student, from our

professional and specialist recommended, and it is modern and state-of-art technology,

where it can be use with laptop or computer. This products are highly secured, so it only can

be use with who has password and we are having our own consultant, for customer service

in 24hours. All source in this product are original, and get permission from other books

company to insert their work in disc, and the customers can be return back if disc have

problems to access. Eventhough. it is beneficial to our customers, the company also has

some weaknesses such as the price is a little bit expensive when compared to others

competitors, which is RM800.00, and the product is still new, thus the customers need to be

expose with this product. We are lack of capital to produce in large quantity. This products

are targetting students,lecturers,and staffs of health sector around Lembah Klang. Base

source from Bidang Keberhasilan Utama Negara (NKRA) on 12 December 2012, Bernama

,total numbers of people stay around Lembah Klang average is 600,000.Which means at

least 200 people in 1km per square.We estimate 5,000 medical students study at Lembah

Klang. After carrying out a detail survey on the companies who had come out with the same

products concept as ours, we had identified one major competitor locally known as Natural

Healing Centre. After carrying out a detail survey on the companies who had come out with

the same products concept as ours, we had identified one major competitor locally known as

Natural Healing Centre. This product is very useful for medical student and doctor. The main

advantage of our product is easy to carry at any place,all material in this disc-base on the

best reference books for all medical student, from our professional and specialist

recommended. Modern and high technology, where it can be use with laptop or


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computer.Highly secured, so it only can be use with who has password.We have our own

consultant, for customer service in 24hours.All source in this product are original, and get

permission from other books company to insert their work in disc.Our company is legal and

we have permit.It can be return back if disc have problems to access. This product still new,

thus it is easier to penetrate marketand furthermore every year they have new medical

student.


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INTRODUCTION

This company is name as Medic Easy Learning, which the name itself reflect the business

overview of our company. It is also reflect our specialities in the medical education and the

products that are offered by our company. The main reason this business plan is made

because it is use to convince venture capitalists, investors and bankers in order to raise

capital and obtain support for the venture. Furthermore, the stakeholders are also require the

business plan to have their own overview of this company. This company will be manage by

a Chief Executive Officer, with the assist of four manager in their own respective department,

which is Marketing, Administration, Finance and Operational Department.The company will

be settle at Bandar Permaisuri, Cheras, Kuala Lumpur.


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PURPOSE

The main reason for preparing the business plan is the opportunity for entrepreneur to

assess the business venture objectively, criically and practically. Furthermore, this business

plan is use as a guideline for day-to-day management of the business and to be able to

distribute business resources more effectively.It is also use to convince venture capitalists,

investors and bankers in order to raise capital and obtain support for the venture. The capital

that is needed for this company is RM 500,000.00, which the financing is going to be utilized

in each of the four respective department, which is Marketing, Administration, Financing and

Operational Department. The financing of this company will be handle by the Financing

Department. The financing will give benefit to our company in the early stage, which it will be

use as rolling capital, and we are forecasting that by 18 month from our beginning of the

businesses, we will be able to cover up the capital. The company is also consider to make a

loan from the Governments owned company such as 1Malaysia Dana Belia Berhad, which

this company is establish to help Malaysians Small Medium Entreprenuer in starting their

businesses.

COMPANY BACKGROUND

The main product of our company is Medical E-book, and we are also providing Scholar

articles, journals and reviews (Rental fees for a year), and question bank collection according

to each particular subject. Furthermore, we are also providing service such as E-assignment

system. This product very useful for medical student and doctor and easy to carry at any

place. All material in this disc-base on the best reference books for all medical student, from

our professional and specialist recommended, and it is modern and state-of-art technology,


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where it can be use with laptop or computer. This products are highly secured, so it only can

be use with who has password and we are having our own consultant, for customer service

in 24hours. All source in this product are original, and get permission from other books

company to insert their work in disc, and the customers can be return back if disc have

problems to access. Eventhough. it is beneficial to our customers, the company also has

some weaknesses such as the price is a little bit expensive when compared to others

competitors, which is RM800.00, and the product is still new, thus the customers need to be

expose with this product. We are lack of capital to produce in large quantity. This products

are targetting students,lecturers,and staffs of health sector around Lembah Klang. Base

source from Bidang Keberhasilan Utama Negara (NKRA) on 12 December 2012,Bernama

,total numbers of people stay around Lembah Klang average is 600,000.Which means at

least 200 people in 1km per square.We estimate 5,000 medical students study at Lembah

Klang.

THE INDUSTRY

The 12 National Key Economic Areas (NKEAs) are at the core of the ETP. A NKEA is

defined as a driver of economic activity that has the potential to directly and materially

contribute a quantifiable amount of economic growth to the Malaysian economy. The

education and health sector are two of the main NKEAs objectives, thus our company are

targetting to gain profit and at the same time contributing towards our nation economic

growth, thus we are expecting the support from the government and private sectors to help

establish the company.


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ADMINISTRATION

Administration Chart


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Managers Role

a) General Manager

General managers are involved in various activities that include managing all the

aspects of various business operations of the firm. Be it the human resources, administrative

services, operations, accounts and even the policies and procedures, general managers are

directly or indirectly involved in all these aspects of the work. Thus, the duties and

responsibilities of the general manager in this company are:

A general manager is expected to look into the matters related to the human

resources. All the matters related to organizational training, the general manager in

consultation with the administration manager looks after recruitment and selection of

candidates.

While the administration/human resource manager carries out all the tasks related to

recruitment, the general manager ensures that quality organizational training is given

to the trainees. Precisely said, general managers look after the training needs of the

employees.

The responsibility of a general manager is to actively participate in the feedback

session and performance evaluation of the employees.

A general manager ensures that matters related to finance and transactions are

within his supervision.

General manager manages and utilizes the funds and expenditures of the various

operations carried out by the firm. The general manager is expected to understand

the financial tools and resource available to the firm and chalk out a plan that

effectively meets the requirements of the projects.

One of the key duties of a general manager is that he is expected to act as liaison

between the management and the employees/staff.


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General manager also monitors and tracks the performance and achievements of the

employees as well of the entire company.

The general manager also directs people to various goals and targets.

b) Administration/Human Resource Manager

An admin manager, who manages every activity pertaining to proper working of the

organization, heads the administrative department. He also undertakes the responsibility of

coordinating other departments, clients, and third parties. An admin manager must possess

administrative qualities, which are utmost necessary for uplifting the standard of the

company. Thus, the jobs and responsibilities of an admin manager are:

An admin manager extends administrative support to departments dealing with the

task of editing, typing, mailing, and filing.

He keeps an account of the documentation details and every kind of information

relating to products, sales, support, and cost of the company.

He must possess good observation power. He monitors the work of back office

personnel and supervises the performance of his assistants, clerks, coders, typists,

and other members of the organization.

He is responsible for scheduling meetings, checking product quality, and deadlines of

his subordinates.

He is answerable to inter-office queries and ensures that there is effective

communication of operational data to the management section.

He provides support to other departments of the organization and manages projects

of the company.

He has the responsibility of reviewing and managing office budget and expenditure.

Admin manager is also responsible for training his subordinates and evaluating their


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performance as they participate in growth of the organization

Human resource management refers to the coherent and strategic approach to

understand the needs of the people working in a firm. Undoubtedly, the growth of a firm is

totally based on the individual and the collective efforts of its workers. This field evolved as a

serious discipline in the business world when it was understood that employees are not mere

business units, like machines and automobiles. Instead, they are a valuable human

manpower and have personal, emotional, and financial needs. The dynamics of business

have become more and more challenging in today's global economy.

Employee retention is a crucial factor and firms hire such managers for this vital task.

Also, the function of such managers is to work in tandem with all the departments of a firm in

order to monitor and decipher the needs of the employees. The human resource department

acts as a bridge between the CEO or the Managing Director of the company and the various

branches, like executive, administrative, project management teams, and operations

management. Following are the major functions and duties of a Human Resource Manager:

Resource hunting and recruitment.

Coaching the employees.

Motivation and performance appraisal.

Salary and payroll negotiations.

Employee satisfactions and feedback.


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c) Finance Manager

There are a large number of specific job titles for different types of finance managers.

In fact, the term, 'financial manager' encompasses various job titles like 'controllers', 'financial

bank managers', 'cash managers', 'chief financial officers', 'treasurers', and 'credit managers'.

Depending on the type of designation, duties and tasks of finance managers vary

significantly. In general, duties and tasks of financial managers are as follows.

They prepare financial reports, balance sheets and store account related data

carefully, for income tax purposes.

They also look after investment areas that are profitable for the firm or an individual

and advise on the same.

Financial managers who work as financial risk managers work on risk management

issues. They help to maximize profits, by finding out risk factors.

Financial controllers ensure that the long-term objectives of financial growth of the

firm are met adequately. By directing and implementing financial strategies, financial

managers ensure that all financial goals of the firm are met adequately.


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d) Operation Manager

An operations manager is responsible for coordinating production activities of the

company and providing the best service to clients to maximize company revenues and

profits. Which is the reason why companies choose to recruit a well-qualified and

experienced person for this post. He has to plan effective strategies to ensure the profit and

financial well being of his company. He works closely with the other departments such as

production, human resources, finance, accounts, marketing, and plans the long-term as well

as the short-term goals of the organization. Additionally, he also discusses each and every

aspect of the development plans with the top-level management of the company. Thus, the

presence of leadership qualities and effective communication skills are a must in any person

aspiring to work in this area. Here is the summary of work that the operation manager is

involved in.

Coordination happens to be one of the foremost duties. He is expected to liaison with

different departments within the company and co-ordinate they are functioning.

He is responsible for budgeting, which involves making appropriate monetary

allocations that maximize outputs along with ensuring profits.

An operations manager also needs to proficiently maintain a balance between the

quantity of work and the quality of the output. Any discord in this area can lead to

problems in the company.

Employee safety is another vital responsibility of the operations manager.

He needs to ensure communication within separate departments of the company so

that the flow of work does not get interrupted.

The operations manager primarily supervises inventory management and quality

control.

He may also have to evaluate employee performance and look into hiring new

people.


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e) Marketing Manager

Marketing is a very important concept that has to be followed by manufacturing

companies in order to let potential consumers know about their products and services.

Marketing is a field that exploited by every company; be it from any industry such as

manufacturing, software development, medical, educational, etc. Since marketing is a wide

scenario to be considered and executed, there is a requirement for the process to be carried

out by responsible and talented professionals. And these professionals are known as sales

and marketing managers. They carry out a large number of tasks and projects, which depend

on the company they are employed in and the brand or product they have to market. The job

descriptions for the marketing manager are:

Their primary responsibility is to formulate the contents of marketing mix and put forth

an effective marketing plan. He has to be in touch with the management to develop

marketing strategies for any products the company is going to launch.

He also has to keep an eye on the current state of the market and the details of the

competitors in the same class.

Before the finalization of the marketing plan, he has to conduct an exhaustive market

research that will really help in the advertising and promotional campaigns of the

product.

A marketing manager supervises the daily work of sales, marketing, advertising, and

product promotion executives. He has evaluated the plans and strategies on the

basis of Return On Investment (ROI).

He also has to discuss with the company management regarding the pricing

strategies and budget of the marketing campaigns.

He has to oversee all components of the product life cycle management. Researching

on methods to improve or meliorate the quality and efficiency of current products and

services of the company is also one of his major job duties.


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ADMINISTRATION DEPARTMENT

MISSION STATEMENT

Providing excellent service with a positive attitude.

DEPARTMENT DESCRIPTION AND PURPOSE

The Administration Department provides administrative support to the Board of Directors,

Board Committees and all departments, and undertakes overall general management of the

company.

Core functions include:

Accounting and budgeting.

Human resources.

Investments.

Public information Risk management.

Safety and training.

General administration and representation at various regulatory agencies.

STAFFING

Three authorized positions in this department headed by the administration manager.

GOALS AND OBJECTIVES

Support Chief Executive Officers activities and provide information on current issuesto the Board.

Manage department expenditures within budget.

Ensure the company is compliance with all regulatory safety and training.

Issue accurate financial reports on a timely basis.

Update and maintain the companys policies and standard procedures.

Provide excellent internal and external customer service.


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DIRECT LABOUR PLANNING SCHEDULE

Table of Rumenuration

No. Position Salary /Month(RM)

EPF (RM)13%

SOCSO(RM)2%

Total(RM)

1. Chief

ExecutiveOfficer

7,000.00 910.00 140.00 8,050.00

2. AdministrationManager

5,000.00 650.00 100.00 5,750.00

3. MarketingManager

5,000.00 650.00 100.00 5,750.00

4. OperatingManager

5,000.00 650.00 100.00 5,750.00

5. FinancialManager

5,000.00 650.00 100.00 5,750.00

Total 31,050.00

No. Position No. of

StaffRequired

Salary /

Month(RM)

EPF

(RM)13%

SOCSO

(RM)2%

Total

(RM)

1. Chief ExecutiveOfficer

1 7,000.00 910.00 140.00 8,050.00

2. AdministrationManager

1 5,000.00 650.00 100.00 5,750.00

3. AdministrationStaff (Clerk)

1 1,200.00 156.00 24.00 1,380.00

TOTAL 15,180.00


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PROJECTED ADMINISTRATIVE EXPENDITURE

ADMINISTRATIVE EXPENDITURE

Fixed Assets RM

Land and Building 250000

Electronic Devices 7000

Working Capital

Salary (EPF, SOCSO, etc.) 15,180.00

Office Maintenance 3,000.00

Other Expenditure

Other Expenditure 2000.00

Pre-Operations

Deposit (rent, utilities, etc.) 25000.00

Business Registration & Licenses 350.00

Insurance & Road Tax for Motor Vehicle -

Other Expenditure -

TOTAL 302,530.00


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Marketing

Definition of marketing

Marketing is the process of planning and executing the conception, pricing, promotion and

distribution of ideas, goods and services to create exchange that might satisfy individual and

organizational objectives by Griffin/Pustay.Marketing is defined as the activities that are

carried out systematically to encourage and increase sales of products/services as long as

the activities are in line with religious and ethical practices

Definition of market

A market is a physical place where buyers and sellers exchange goods and services.

Any entity that has the purchasing power to acquire goods and services to fulfill its needs

and wants

a)Market segmentation.

Segmentation Variables/Bases

Demographic Their age around 19 to 30,especiallymedical student including male andfemale. Their maximum pocket money

RM 1000 and open to all race.

Psychographic Educational student, also know how touse technology internet and then like touse many source to make reference andtheir hobby is learning and reading andthus dont have any problems for the highprice.

.

b)Market Share

Market size around Lembah Klang,Selangor.

Market size,around Lembah Klang base source from Bidang Keberhasilan Utama Negara

(NKRA) on 12December 2012,Bernama ,total numbers of people stay around Lembah Klang

average is 600,000.Which means at least 200 people in 1km per square.We estimate 5,000

medical students study at Lembah Klang.

Market Share


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Percentage before enter market sale:

Percentage during enter market sale:

Total target market:

Kamal

bookstore

80%

Micron Medical

Resources (M3)

20%

0%0%

Percentage before enter market sale

Kamal bookstore

75%

Micron Medical

Resources (M3)

15%

Easy learning

company

10%

0%

Percentage During enter market sale


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Name of Company % during competition x5,000 medical student

Total target market

Kamal Bookstore 75% x 5,000 3,750

Micron Medical Resource 15% x 5,000 750

Easy Learning 10% x 5,000 500

b) Sales Forecast

Month Units Sales (RM)

January 0 0

February 300 240,000

March 300 240,000

April 300 240,000

May 300 240,000

June 300 240,000July 300 240,000

August 300 240,000

September 300 240,000

October 300 240,000

November 300 240,000

December 300 240,000

Total 3,600 2,880,000

c) Marketing Budget

Fixed AssetsExpenses

(RM)

MonthlyExpenses

(RM)

OtherExpenses

(RM)

Pre-operation

(RM)

Machine printer 11,000.00

Pamphlets andbrochures (Advertising)

5,000.00

Commission

Salary, EPF & SOCSO :1)clerk2)assistant marketing

Manager

22,770.00

Other Expenditure 2,000.00Media Advertisment 8,000.00

Deposit(rent,utilities,etc) -

Business registrationand license

Insurance&road tax formotor vechile

-

Total each marketingexpenditure

11,000.00 35,770.00 2,000.00

Total 48,770.00

Strength Weakness

This product very useful for medical Price is expensive


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student and doctor

Easy to carry at any place Product is still new, thus customer needto be exposed with this product.

All material in this disc-base on the bestreference books for all medical student,from our professional and specialistrecommended.

Company still new, thus it is harder togain customers trust.

Modern and high technology, where itcan be use with laptop or computer.

Lack of agent to promote this product.

Highly secured, so it only can be use withwho has password.

Lack of money to produce, in highquantity.

We have our own consultant, forcustomer service in 24hours.

All source in this product are original, andget permission from other bookscompany to insert their work in disc.

Our company is legal and we have

permit.Can be return back if disc have problemsto access.

Opportunities Threats

This product still new, thus it is easier topenetrate market

New products offering the similar serviceor product will emerge.

Every year they have new medicalstudent

Promotion

We will concentrate on mass advertising in order to promote our product.

Include our agency in local print advertising like Metro, Berita Harian, and New Straits

Times as well as magazines like HealthToday, Readers Digest. This will further

increase the customers knowledge about our products and the benefits.

Set up a website and a FB page. As people nowadays are attached to technology, it

will be an advantage to reach them by this way.

Advertise our products in TV3 and RTM in order to create name recognition and

attract potential buyers.


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Besides mass advertising, there are other several steps that we will take in order to ensure

an effective and adequate promotion for our product, such as:

Involve in a road show around the country, that organised from health and society

government department and NGO in order to reach.

Organised a special launch day to celebrate our agencys opening. Door gifts

containing 1 disc with stethoscope.

Distribution of pamphlets and brochure around medical university areas.

Open small booth in every medical school around Malaysia, twice a year

Place

Our company specialized to manufacture disc with own secure system is located in

Damansara Perdana,Selangor as the area is well populated and the transport system is

good. The product will be distributed around the country especially through IPTA and IPTS

around Malaysia.

Potential customers

For market segmentation, we are focusing on the medical students studying in Malaysia,

primarily. If, we have the chances to broaden up our company, simultaneously our product

and services, we would like to advertise and sell our products to the medical students around

the world.

Competitor

After carrying out a detail survey on the companies who had come out with the same

products concept as ours, we had identified one major competitor locally known as Natural

Healing Centre. The address of this company is as follow:

Syarikat Kamal

Address: Jalan Pahang, 50300 Kuala Lumpur, Federal Territory of Kuala Lumpur

Micron Medical Resource (Medical software and supplies)

Address: Pulau Pinang, 11700 Timur Laut, Pulau Pinang.


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Products

Medical E-book

E Educationalsystem.

Price

For each item of our product,we have made a conclusion about our price. Each product,

price is RM800.00.


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OPERATION MANAGEMENT

Operations management can be defined as the process of marshalling business input totransform them into output in the form of product or services. Operations management is thebusiness function that plans, coordinates and control the resources needed to produce acompanys products and services. (Reid and Sanders)

Operation is one of an important function in a business organization including our company.Managing operations is crucial to make sure that the business is able to produce product ordeliver services according to the specification, quality and time specified by our customer.

In our company, there are 12 major components in the operations plan which is

Process Planning

Operations Layout

Production Planning

Material Planning

Machine and Equipment Planning

Manpower Planning

Overheads Requirement

Location Plan

Business and Operations Hours License, Permits and Regulations Required

Operations Budget

Implementation Schedule


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Meeting with medicalbook company to get their

permission and tie a deal

Discuss about content to

be delivered and customer

approach method

Consultation from webdesigner,server engineer,

and DVD supplier

Further discuss about

sharing of resources to

achieve desired service

Work on the server, DVD,

and website design

Implementation of books

content into digital web

servers and DVD

Website is ready to

provide service desired by

the company

DVD is ready to be

implemented when in

demand

PROCESS PLANNING


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PRODUCTION PLANNING

Average sales forecast per month= RM 240,000.00

Price per unit= RM 800.00

Number of output per month= RM240000/RM800= 300 CD set

Number of working days per month= 24 days

The amount of output to be produced per day is:= 300 units/ 20 days= 15 CD set per day

A for our web-based services, the number of output per day is not required as the website isreadily available as the web programming is done. However, to remain relevant for ourcustomer, the content need to be updated regularly


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MATERIAL PLANNING

RAW MATERIALS REQUIRED AND ESTIMATED QUANTITY FOR A SET OF PRODUCT

PRODUCT NO. MATERIAL SPECIFICATION QUANTITY

01 Rewritable DVD 4GB of space 30

02 Plastic DVD case Can fit DVD 30

03 DVD Label paper Glossy Paper 30

04 BOX 1

MATERIAL PRICE PER UNIT (RM) TOTAL PRICE (RM)

Rewritable DVD 2 60

Plastic DVD case 0.7 21

DVD Label paper 0.5 15

BOX 1 1

TOTAL PRICE PER UNIT

= RM 97

TOTAL PRODUCT COST PER MONTH

= RM 97 x 300

= RM 29100

TOTAL PRICE PER UNIT INCLUDING ROYALTY

= RM 97 + RM 403

= RM 500

TOTAL PRODUCT COST PER MONTH INCLUDING ROYALTY

= RM 500 x 300

= RM150000


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MACHINE AND EQUIPMENT

NO MACHINE QTY. PRICE/UNIT(RM) TOTAL PRICE(RM)

1 Computer 3 3000 9000

2 Printer 1 400 400

3 DVD burner 1 200 200

9800

MANPOWER PLANNING

WEB-BASED SERVICE

Estimated time needed to program desired websites = 50 hours

Work Capacity per day = 6 hours

1 worker can work 5 hours 1 day

Day of work needed = 50/6

= 8.333 hours

Workers needed = 8.333/5

= 1.666666

= 2

DVD PRODUCTION

For DVD production, since the working hour needed is too little to hire a worker, programmeris tasked to produce DVD according to demand. Salary allocation is based on number of dvdproduced.


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No Position No required Salary/month(RM)

EPF(RM)13%

Socso(RM)2%

Total(RM)

1 Operation M. 1 5000 650 100 5750

2 Programmer 1 3000 390 60 3459

3 As. Program. 1 2500 325 50 2875

DVD writer 1 2x300=600 600

12684


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LOCATION PLAN


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BUSINESS AND OPERATION HOURS

Business Hours

Weekdays

8.00AM to 12.30PM and 2.30PM to 5.00PM

Friday


Operation Hours

Weekdays


Friday8.00AM to 12.00PM and 3.00PM to 5.00PM

OPERATIONS BUDGET

Item Fixed Asset Monthly Expenses Other

ExpensesMachine And Equipment

Utilities

Wages + EPF + SOCSO

Software

Other Expenses

RM 9800

RM500

RM 150000

RM 12684

2000

RM 10300 RM 192684 RM 2000

TOTAL OPERATIONAL BUDGET = RM 174984


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IMPLEMENTATION SCHEDULE

Activities Deadlines Durations

Incorporation of business JanMac 2013 3 months

Dealing With Partners FebApril 4 monthsApplication for permits and license JanApril 2013 4 months

Searching for business premise FebMac 2013 3 months

Renovation of premise April 2009 1 month

Procurement of machines and rawmaterial

AprilJune 2013 3 months

Recruitment of labours June 2013 1 month


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Financial Plan

ADMINISTRATIVE EXPENDITURE

Fixed Assets RM

Land & Building 250,000

Electronic Devices 7,000

Working Capital

Salary, EPF, SOCSO 15,180

Office Maintenance 3,000

Other Expenditure

Other Expenditure 2,000.00

Pre-Operations

Deposit (rent, utilities, etc.) 25,000

Business Registration & Licences 350

Insurance & Road Tax for MotorVehicle -

Other Expenditure -

TOTAL 302,530

MARKETING EXPENDITURE

Fixed Assets RM

Electronic Devices & Machineries 11,000

Working Capital

Salaries, EPF & SOCSO 22,770

Pamphlets & Brochures 5,000


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Media Advetrisement 8,000

Other Expenditure


Pre-Operations

Deposit (rent, utilities, etc.) -

Business Registration & Licences -


Other Expenditure -

TOTAL 48,770

OPERATIONS EXPENDITURE

Fixed Assets RM

Electronic Devices 9,800

Softwares 500

Working Capital

Raw Materials & Packaging 150,000

Carriage Inward & Duty -

Salaries, EPF & SOCSO 12,684

Other Expenditure


Pre-Operations

Deposit (rent, utilities, etc.) -

Business Registration & Licences -


Other Expenditure -

TOTAL 174,984


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SALES PROJECTION

Month 1 240,000

Month 2 240,000

Month 3 240,000

Month 4 240,000

Month 5 240,000Month 6 240,000

Month 7 240,000

Month 8 240,000

Month 9 240,000

Month 10 240,000

Month 11 240,000

Month 12 240,000

Total Year 1 2,880,000

ToTal Year 2 3,744,000


PURCHASE PROJECTION

Month 1 150,000

Month 2 150,000

Month 3 150,000

Month 4 150,000

Month 5 150,000

Month 6 150,000

Month 7 150,000

Month 8 150,000Month 9 150,000

Month 10 150,000

Month 11 150,000

Month 12 150,000


ToTal Year 2 2,160,000


CASH COLLECTIONS FOR SALESIn the month of sale 100%

1 month after sale

2 months after sale

Total 100%

CASH PAYMENTS FOR PURCHASES

In the month of purchase 100%

1 month after purchase

2 months after purchaseTotal 100%


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FIXED ASSETS

Econ.Life(yrs)


- 5

- 5

- 5

Electronic Devices & Machineries 5

- 5

FIXED ASSETSEcon. Life

(yrs)

5

5


Softwares 5

5

5

DEPRECIATION METHOD (1=straight line, 2=declining balance) 1

INCREASE IN WORKING CAPITAL (%)

Year 2 30%

Year 3 35%

BUSINESS LEGAL ENTITY 2

1 = Private Limited Cpmpany (Sdn. Bhd.)

2 = Partnership

3 = Sole Proprietorship

NATURE OF BUSINESS 1

1 = Manufacturing

2 = Trading3 = Service

LOAN (if required)

Interest rate 5%

Loan duration 5

Interest payment method* 1

* Method: 1 = flat rate 2 = annual rest

HIRE-PURCHASE (if required)

Interest rate 5%Hire-purchase duration 5


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MARKETING BUDGET

Particulars F.AssetsMonthly

Exp. Others Total

Fixed Assets

Electronic Devices & Machineries 11,000 11,000

- -

- -

- -

Working Capi tal

Salaries, EPF & SOCSO 22,770 22,770

Pamphlets & Brochures 5,000 5,000

Media Advetrisement 8,000 8,000

- -

- -

- -

- -


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Pre-Operat ions & Other Expendi ture

Other Expenditure 2,000

Deposit (rent, utilities, etc.) - -

Business Registration & Licences - -Insurance & Road Tax for MotorVehicle - -

Other Pre-Operations Expenditure - -

Total 11,000 35,770 2,000 46,770

OPERATIONS BUDGET


Exp. Others Total

Fixed Assets

Electronic Devices 9800 9,800

Softwares 500 500

-

-

Working Capi tal

Raw Materials & Packaging 150,000 150,000

Carriage Inward & Duty - -

Salaries, EPF & SOCSO 12,684 12,684

- -

- -

- -

- -



Deposit (rent, utilities, etc.) - -

Business Registration & Licences - -Insurance & Road Tax for MotorVehicle - -


Total 10,300 162,684 2,000 172,984

ADMINISTRATIVE BUDGET


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Exp. Others Total

Fixed Assets

Land & Building 250,000 250,000

Electronic Devices 7,000 7,000

- -

- -

- -

Working Capi tal

Salary, EPF, SOCSO 15,180 15,180

Office Maintenance 3,000 3,000

- -

- -

- -

- -

- -



Deposit (rent, utilities, etc.) 25,000 25,000

Business Registration & Licences 350 350Insurance & Road Tax for MotorVehicle - -


Total 257,000 18,180 27,350 300,530

DEPRECIATION SCHEDULES

Fixed A sset Electronic Devices

Cost (RM) 7,000

Method Straight Line

Econom ic Li fe (yrs) 5

Annual AccumulatedYear Depreciation Depreciation Book Value

- - 7,000

1 1,400 1,400 5,600


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2 1,400 2,800 4,200

3 1,400 4,200 2,800

4 1,400 5,600 1,400

5 1,400 7,000 -

6 0 0 -

7 0 0 -

8 0 0 -

9 0 0 -

10 0 0 -

Fixed A ssetElectronic Devices &Machineries

Cost (RM) 11,000



Annual Accumulated

Year Depreciation Depreciation Book Value

- - 11,000

1 2,200 2,200 8,800

2 2,200 4,400 6,600

3 2,200 6,600 4,400

4 2,200 8,800 2,200

5 2,200 11,000 -

6 0 0 -

7 0 0 -

8 0 0 -

9 0 0 -

10 0 0 -

Fixed A sset Electronic Devices

Cost (RM) 9,800



Annual Accumulated



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- - 9,800

1 1,960 1,960 7,840

2 1,960 3,920 5,880

3 1,960 5,880 3,920

4 1,960 7,840 1,960

5 1,960 9,800 -

6 0 0 -

7 0 0 -

8 0 0 -

9 0 0 -

10 0 0 -

Fixed A sset Softwares

Cost (RM) 500


Economic L i fe

(yrs) 5

Annual Accumulated


- - 500

1 100 100 400

2 100 200 300

3 100 300 200

4 100 400 100

5 100 500 -

6 0 0 -

7 0 0 -

8 0 0 -

9 0 0 -

10 0 0 -

LOAN REPAYMENT SCHEDULE

Amount 550,612

Interest Rate 5%

Durat ion (yrs) 5Method Kadar tetap


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Year Principal Interest Total Payment Principal Balance

- - 550,612

1 110,122 27,531 137,653 440,490

2 110,122 27,531 137,653 330,367

3 110,122 27,531 137,653 220,245

4 110,122 27,531 137,653 110,122

5 110,122 27,531 137,653 -

6 0 0 - -

7 0 0 - -

8 0 0 - -

9 0 0 - -

10 0 0 -

Cash Flow Prow Forma Statement


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PRODUCTION COST PRO-FORMA STATEMENT

Year 1 Year 2 Year 3

Raw Materials

Opening Stock 0

Current Year Purchases 1,800,000 2,160,000 2,340,000

Ending Stock

Raw Materials Used 1,800,000 2,160,000 2,340,000

Carriage Inward

1,800,000 2,160,000 2,340,000

Salaries, EPF & SOCSO 152,208 197,870 267,125

Factory Overhead

Depreciation of Fixed assets(Operations) 2,060 2,060 2,060

Total Factory Overhead 2,060 2,060 2,060

Production Cost 1,954,268 2,359,930 2,609,185

PRO-FORMA INCOME STATEMENT


Sales 2,880,000 3,744,000 4,320,000

Less: Cost of SalesOpening Stock of Finished Goods

Production Cost 1,954,268 2,359,930 2,609,185

less: Ending Stock of FinishedGoods

0 0 0

1,954,268 2,359,930 2,609,185

Gross Profit 925,732 1,384,070 1,710,815

Less: Enpenditure

Administrative Expenditure 218,160 283,608 382,871

Marketing Expenditure 429,240 558,012 753,316

Other Expenditure 6,000 7,800 10,530

Business Registration & Licences 350

Insurance & Road Tax for MotorVehicle

Other Pre-Operations Expenditure

Interest on Hire-Purchase

Interest on Loan 27,531 27,531 27,531

Depreciation of Fixed Assets 3,600 3,600 3,600

Total Expenditure 684,881 880,551 1,177,848Net Profit Before Tax 240,851 503,519 532,967


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Tax 0 0 0

Net Profit After Tax 240,851 503,519 532,967

Accumulated Net Profit 240,851 744,370 1,277,338

PRO-FORMA BALANCE SHEET


ASSETS

Fixed Assets (Book Value)

Land & Building 250,000 250,000 250,000

Electronic Devices 5,600 4,200 2,800

Electronic Devices & Machineries 8,800 6,600 4,400

Electronic Devices 7,840 5,880 3,920

Softwares 400 300 200

272,640 266,980 261,320

Current Assets

Stock of Raw Materials

Stock of Finished Goods

Accounts Receivable

Cash Balance 412,001 811,058 1,239,563

412,001 811,058 1,239,563

Other Assets

Deposit 25,000 25,000 25,000

TOTAL ASSETS 709,641 1,103,038 1,525,883

Owners' Equity

Capital 28,300 28,300 28,300

Accumulated Profit 240,851 744,370 1,277,338

269,151 772,670 1,305,638

Long Term Liabilities

Loan Balance 440,490 330,367 220,245

Hire-Purchase Balance

440,490 330,367 220,245

Current Liabilities

Accounts Payable

TOTAL EQUITY &LIABILITIES 709,641 1,103,038 1,525,883


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0

FINANCIAL PERFORMANCE


PROFITABILITY

Sales 2,880,000 3,744,000 4,320,000Gross Profit 925,732 1,384,070 1,710,815

Profit Before Tax 240,851 503,519 532,967

Profit After Tax 240,851 503,519 532,967

Accumulated Profit 240,851 744,370 1,277,338

LIQUIDITY

Total Cash Inflow 3,441,612 3,744,000 4,320,000

Total Cash Outflow 3,029,611 3,344,944 3,891,495

Surplus (Deficit) 412,001 399,057 428,505

Accumulated Cash 412,001 811,058 1,239,563

SAFETY

Owners' Equity 269,151 772,670 1,305,638

Fixed Assets 272,640 266,980 261,320

Current Assets 412,001 811,058 1,239,563

Long Term Liabilities 440,490 330,367 220,245

Current Liabilities 0 0 0

FINANCIAL RATIOS

Profitabil i ty

Return on Sales 8% 13% 12%

Return on Equity 89% 65% 41%

Return on Investment 34% 46% 35%Liquid i ty

Current Ratio #DIV/0! #DIV/0! #DIV/0!

Quick Ratio (Acid Test) #DIV/0! #DIV/0! #DIV/0!

Safety

Debt to Equity Ratio 1.6 0.4 0.2

BREAK-EVEN ANALYSIS

Break-Even Point (Sales) 2,113,738 2,362,904 2,949,259

Break-Even Point (%) 73% 63% 68%


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