A PRESENTATI ON BYAHMAD SYAFIQ DEEN (0325116)

ARINA NADIA (0324105)HAZEQ OSMAN (0325875)

LIM MEN HORNG (0324350)

BUSINESS PLAN

APPENDIX

BUSINESS BACKGROUNDMARKET ANALYSISMARKETING STRATEGIESMANAGEMENT STRATEGIESFINANCIAL PLANCONCLUSIONREFERENCE

BUSINESS BACKGROUND

• Bookstore café

• Providing books to sell(especially for local writers) and rent, as well as serve snacks for customers as they browse around

• Name: “The Author’s Café & Bookstore”

• Location: SS15, Subang Jaya

• To generate income and stability, as well as provide a place for students to have their meals, as do their assignments (reports and etc.) and study with reliable references (textbooks, journals, etc.) nearby, or simply enjoy a good book for leisure.

NATURE OF BUSINESS

LOGO

C

MARKET ANALYSIS

CAFÉS BOOKSTORES

Cafés, particularly “hipster” cafes, are doing quite well these days, becoming the preferred place for a lot of teenagers to hang out

Unlike in the USA, physical bookstores in Malaysia are still available

The only reason customers don’t purchase is because books are getting more expensive and are considered a luxury

MARKET TRENDS

CAFÉS BOOKSTORES

The estimated revenue of cafés are around RM250k each year

The estimated revenue of bookstores is around RM600k each year

MARKET TRENDS

CUSTOMERS

• College/university students (Taylor’s, INTI, Monash, Sunway) with incomes of RM0-2,000

• Working class people, with incomes of RM2,500-3,500

• Book Worms

Coffee Lovers

POTENTIAL COMPETITORS

Restaurants and cafes nearby.

STRENGTHS:

Their prices; possibly will be more inexpensive than ours.

The selection of food; mostly comprised of heavier meals.

WEAKNESSES:

They don’t provide a secondary product: books.

They don’t provide a comfortable space for students to read/do their assignments/have discussions.

MARKETING STRATEGIES

a. BENEFITS OF OUR SERVICE

We provide a place for students to do their research as well as have group discussions freely without the hassle of booking discussion rooms on campus.

Students also get to have meals while doing their assignments.

The main goal of starting a business is of course, having a steady income and also having a steady amount of customers.

While we are confident that we can achieve that goal, we are also providing a medium for local writers to publish their books.

We are also selling books that are popular.For the local published books, we are providing a book-on-

demand service, which has proven to be effective before.

b. SALES STRATEGY

We will be selling books in the cafe, stylized like a library for customers to browse with ease.

We offer rental services for books – customers are able to do so online or in store.

Online purchase of books and food are also available, as well as free-of-charge delivery services to places within a 20km radius of the café.

We will offer memberships with 20% discounts on rental/purchasing of books more than RM60.

There will be ‘quiet corners’ for those who want peace while reading/doing work or have private discussions.

c. PRICING

Average beverage costing:- Hot Drinks : RM 8- Iced Coffee/Chocolate: RM 11- Iced Teas and Sparkling Fruit Drinks: RM 10- Frappucinos and Smoothies: RM 14

Average Pastry costing:- Cakes: RM 9- Pies, Panini, and etc: RM 14

HOW WILL WE ATTRACT CUSTOMERS TO OUR

SERVICES?

ONLINE MARKETING

• From banners to Instagram reviews, the internet can be a very strong medium for marketing our business.

• For banners, we can display them on famous social media websites such as Facebook.

• We can also start a trend on twitter about our café, creating a hashtag so the news about our café will be spread more widely

•

OFFLINE MARKETING

• With mass adoption of the Internet, our company will also find new ways of offline marketing to create more engaging customer experiences.

• We can create essay writing events with coupons as gifts

• We can use the guerrilla tactic, dropping business cards or even cleverly made invitation cards to libraries, universities and even bookshops to make people come to our café.

COMMUNITY MARKETING

• Asking friends and family to spread the word.

• Engaging in friendly conversations with customers to have a good image in the local community, indirectly making them spread the word about our business.

ALLIANCE MARKETING

• Since having partnerships with companies like MPH bookstores, we can make arrangements to display some banners at some of their branches and even give out vouchers to our shop when customers purchase a certain amount of books

MANAGEMENT STRATEGIES

WHO ARE OUR PARTNERS?

A COFFEE COMPANY• To ensure the quality of the

coffee that we are serving

A PUBLISHING AGENCY• To have long term publishing

opportunities for local writers.

MPH BOOKSTORES• To improve the book sales

for writers.• To supply

storybooks/textbooks/reference books/journals for students.

MEMBERS OF BUSINESS

• Manager (2)

• Cashier (1)

• Barista (2)

• Librarian (2)

• Waiter (2)

TO MONITOR THE BUSINESS; RESPONSIBLE FOR CONTROLLING AND

ADMINISTERTING

MANAGER

• HANDLING TRANSACTIONSHANDLING SCRIPTS FOR PUBLISHING

CASHIER

• MAKE QUALITY COFFEE FOR CUSTOMERS

BARISTA

• Arranging and categorising books in the store for customers’ easeProviding relevant information when customers ask for help

LIBRARIAN/HELPDESK

• Providing clean and comfortable seating space for customerTaking ordersAssisting librarian and barista

WAITER

YEAR 2016-2019

FINANCIAL PLAN

STARTUP COSTSJAN, 2016

CAPITAL RM200,000

FURNITURE RM10,000

ADVERTISING RM20,000

MACHINERY Downpayment of RM5,000

MONTHLY COSTS2016

COFFEE RM948

RENT RM7,500

STAFF RM10,100

PUBLISHING RM2,000

ELECTRICITY RM1,000

ADVERTISING RM5,000

MACHINERY RM1,000

BANK LOANS RM7,000

MONTHLY REVENUEJAN - DEC, 2016

COFFEE RM24,000

PASTRIES RM21,000

BOOKS RM45,600

TOTAL REVENUE RM90,600TOTAL PROFIT RM21,052

REMAINING CREDIT RM221,052

MONTHLY COSTSJAN - DEC, 2017

REMAINING CREDITS RM837,646

COFFEE RM948

RENT RM7,500

STAFF RM10,100

PUBLISHING RM2,000

ELECTRICITY RM1,000

ADVERTISING RM5,000

MACHINERY RM1,000

BANK LOANS RM7,000

REVENUEJAN - DEC, 2017

TOTAL REVENUE RM90,600

TOTAL PROFIT RM56,054

REMAINING CREDIT RM893,700

MONTHLY COSTSJAN - DEC, 2018

REMAINING CREDITS RM1,536,348

COFFEE RM948

RENT RM7,500

STAFF RM10,100

PUBLISHING RM2,000

ELECTRICITY RM1,000

ADVERTISING RM5,000

MACHINERY RM1,000

BANK LOANS RM7,000

REVENUEJAN - DEC, 2018

TOTAL REVENUE RM90,600

TOTAL PROFIT RM56,054

REMAINING CREDIT RM1,592,402

CONCLUSION

To conclude our presentation, our business action plan is a simple but we believe effective way to advance our competitors which is:

- To provide good quality both in food and beverages and also service, making our prices reasonable

- To provide easier access for references to students- To provide a calm environment for reading and relaxing- To provide a platform for local writers to publish their

books- To allow customers to buy books for a cheaper price

(second hand books)- To generate income

REFERENCES

A. (2015, May 7). ASEAN coffee trade grows 20%-30% per annum. Retrieved March 1, 2016, from http://www.thestar.com.my/business/business-news/2015/05/07/asean-coffee-trade-grows-20-30-pct-per-annum/

Abrams, R. M. (2003). The successful business plan: Secrets & strategies. Palto Alto, CA: Planning Shop.

Cooper, R. G. (2001). Winning at New Products: Accelerating the Process From Idea to Launch. Perseus Pub.

Covello, J. A., & Hazelgren, B. J. (1998). Your first business plan: A simple question and answer format designed to help you write your own plan. Naperville, IL: Sourcebooks.

Lagerfield, N. (2015, October 20). Why There are Still Borders Bookstores in Malaysia, Or The Strange Case of the Zombie Chain. Retrieved February 27, 2016, from http://www.atlasobscura.com/articles/why-there-are-still-borders-bookstores-in-malaysia-or-the-strange-case-of-the-zombie-chain

A. (2014, February 22). The Growing Market of Small Coffee Shops In Asia - Business Insider. Retrieved March 5, 2016, from http://www.businessinsider.my/the-growing-market-of-small-coffee-shops-in-asia/#YwZuYIyxlisQUgDY.97

THANK YOU

END