business proposal
TRANSCRIPT
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1.0 DESCRIPTION AND OWNERSHIP OF PROPOSED
BUSINESS
1.1 Company Summary
- Introduction
This business is a partnership company. It is a trendy business built around the belief that
eating a healthy, delicious dessert can have a significant impact on a person’s well-being and
attitude, especially for those who believe in marvelous food. We produce variety types of
light foods such as cakes, buns and cupcakes. Incorporating the adaptability factor, our
company will also cater to customers who require special needs such as vegan, gluten-free
and sugar-free diets. Big Bang Bakery also believes that customers can have great tasting
organic baked cupcakes if the right attention is paid to sourcing, recipes and consistent
quality. Finally, it is the purpose of Big Bang Bakery to fulfill the customer’s need in
choosing their desserts and cakes.
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- Goals and Objectives
Business Goals
• To spend about 28 days per month specifically to marketing efforts
• To participate in state-wide and local bridal trade shows
• Minimize our sales force and maximize our effectiveness
Strategic Goals
• Raise funds to support our goals through interested investors
• Achieve 99% customer satisfaction and develop repeat customer base
VISION
We will become a well-known bakery’s brand name among the residence in Mount Austin
through a shared commitment to excellence. We are also dedicated to the uncompromising
quality of our food, service, people and profit, while taking exceptional care of our guests and
staff.
MISSION
To create an environment where absolute guest satisfaction is our highest priority and also to
provide a new taste of products to our dearest customers.
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1.2 Company Ownership
- Company Ownership
This company is owned and established by Bavithiran S/O Vadiveloo, Yasreen Binti
Mohd Yasin and Noraishah bte Mior Razali in April, 2013. Big Bang Bakery is a Limited
Liability Company (LLC). The Limited Liability Corporation (LLC) is a very common
choice in business plans because it affords the owners a great deal of flexibility, and
distances of a company. LLCs provide limited personal liability for business debts and
claims. But when it comes to taxes, LLCs are more like partnerships, the owners of an
LLC pay taxes on their shares of the business income on their personal tax returns.
- Company History
This company is established when there are three person decided to merge to run on
business. The business that we choose is a bakery shop. This partnership company able to
achieve few benefits that will make our company profitable. After a long discussion
between three of us, we are proudly to announce that Big Bang Bakery as our company
name. The named is given because we would likely want our business gives a big impact
in gaining profit when we start up our business. The three of us combined our fund to
develop the business that is located at Mount Austin. We are buying double-storey shop
house where it is at one of the largest business park at Mount Austin. The location of the
shop is strategic and quite competitive. This is because there is a lot more other shop that
sell light foods. However, we will make sure that our quality of food will satisfy our
customers. Three of us are the founder for this bakery shop, and we decided to employ as
much as 5 employees. These employees will help us out in managing our Big Bang
Bakery shop. They will also help in ensure our customer satisfy and treat our customer
right. With this, the business will run smoothly and successfully.
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Here are some advantages and disadvantages of doing a partnership company :-
Advantages of Partnership
Capital – Due to the nature of the business, the partners will fund the business with start
up capital. This means that the more partners there are, the more money they can put into
the business, which will allow better flexibility and more potential for growth. It also
means more potential profit, which will be equally shared between the partners.
Flexibility – A partnership is generally easier to form, manage and run. They are less
strictly regulated than companies, in terms of the laws governing the formation and
because the partners have the only say in the way the business is run, without interference
by shareholders. They are far more flexible in terms of management, as long as all the
partners can agree.
Shared Responsibility – Partners can share the responsibility of the running of the
business. This will allow them to make the most of their abilities. Rather than splitting
the management and taking an equal share of each business task, they might well split the
work according to their skills. So if one partner is good with figures, they might deal with
the book keeping and accounts, while the other partner might have a flare for sales and
therefore be the main sales person for the business.
Decision Making – Partners share the decision making and can help each other out when
they need to. More partners mean more brains that can be picked for business ideas and
for the solving of problems that the business encounters.
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2.0 ASSESSMENT OF THE BUSSINESS ENVIROMENT
2.1 ECONOMIC CONDITION
We’re decided to run on bakery business at Mount Austin in Johor Bahru. We’re shared the
economic condition between the season, secret recipe, and many other. But we’re still confident
with our business and assured that we can compete the others bakery shop. Other than that, we’re
sure that our bakery business were profitable because the economic growth in Malaysia were
rosy every years in this time.so, we’re think that the people will increase their income and similar
with their demands. Then the demand condition for the bakery’s business will increase too.
Besides that, in the growth country like Malaysia people don’t have much time to bake some
cake. So, because of that we can see that the demand of cake is actually larger in any place.
Furthermore, we’re choosing in Mount Austin because the income of the residents on that place
was higher than others place. But then with our strategy that made a baked with the lower price
than others bakery shops besides we’re maintained the tasted of the cake, we’re sure that the
customers were attracted with our business.
Other than that, the economic condition at the Mount Austin was larger because there have
students that will increase the demand of our cake. The example is the students of the Sunway
College. Moreover, we’re find out the residents at Mount Austin was have a lower
unemployment rate that will increase our demand of bakery. Besides, we’re made a contract with
2 wedding company that they will order cake with for every month.
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2.2 INDUSTRY ENVIROMENT
Industry environment means the exterior forces which cannot be controlled by marketing but
may have a significant impact on the success of the product offering including existing
competition, the threat of new competition, price competitiveness, changes in consumer tastes
and economic factors.
As we know, when we open up business we will have a competitors. So, we’re listed out our
competitor such as season, secret recipe and many others. But we can compete the others
competitors with our delicious and inexpensive cake and baked.
Besides that, we know that the standard of living at the Mount Austin were higher. So,the
demand on that place were high. Other than that we can see that why the standard of living at
Mount Austin higher because there have Sunway college. Students in the Sunway college is the
one four target customers besides that the residents at the Mount Austin.
Furthermore, we’re tried to adapt with the willingness on the resident at Mount Austin, students
in Sunway College and many more. We made survey what the most people demand at the Mount
Austin. The result is people demanding in the tiramisu cake. so with our own strategy, we will
made variety type of tiramisu cake to attract people at Mount Austin. Moreover, we’re having a
fixed customer that will to order cake for every month. So every month, we’re sure that our
productivity bakery business runs on with good and smoothly.
2.3 GLOBAL ENVIROMENT
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Global environment is the analysis of the global environment of a company is called global
environmental analysis. This analysis is part of a company’s analysis-system, which also
comprises various other analyses, like the industry analysis, the market analysis and the analyses
of companies, clients and competitors. This system can be divided into a macro and micro level.
Except for the global environmental analysis, all other analyses can be found on the micro level.
Though, the global environmental analysis describes the macro environment of a company.
Obviously, a company is influenced by its environment
So, suitable with our place at Johor Bahru that is nearest to Singapore. We will target the
customers at Singapore too. And we know that the currency for Singapore is high and their
demand was high too. And then similar to the mission of government with the year of visit
Malaysia, we will target the others foreigner as our customers.
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3.0 MANAGEMENT PLAN
3.1 Organizational StructureB
IG
BA
NG
B
AK
ER
YNORAISHAH BINTI MIOR RAZALI(CEO AND FINANCING DIRECTOR)
BAVITHIRAN S/O VADIVELOO(CEO AND MANAGER )
YASREEEN BINTI MOHD YASIN(CEO AND MARKETING DIRECTOR)
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3.2 Profile Board Of Directors
Name : Bavithiran S/O Vadiveloo
Date of Birth : 4 January 1985
Status : Married
Position : CEO and Manager
Responsibility : Managing the business
Education Level : PhD in management
Name of University : University of Sydney
Name : Yasreen bt Mohd Yasin
Date of Birth : 4 June 1988
Status : Single
Position : CEO and Marketing of Director
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Responsibility : Enlarge our market business
Education Level : Bachelor of human resource
Name of University : Taylor University
Name : Noraishah Bt Mior Razali
Date of Birth : 12 February 1988
Status : Single
Position : CEO and Financial of Director
Responsibility : Determine the profit of business
Education Level : Bachelor of finance
Name of University : Sunway University
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Grand opening of the Big Bang Bakery Shop.Giving flyers out to the target custmers.
APRIL
Promoting products to customers.New website ( www.BigBangBakery.com.my ) is created.
MAY
Promoting varieties of products.
JUNE
3.3 Project Milestone
- 2013 -
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Introducing membership cards to customers for more discounts and benefits.
JANUARYInforming customer on how to reedem points if they will gain on their loyalty card.
FEBRUARY
Hiring new staffs.
M ARCH
Introducing new products.
M AY
Introducing couples baking session.
JUNE
Enlarging the cafe shop.
NOVEM BER
Calculating Balance Sheet & Income Statement annually.
DECEM BER
- 2014 -
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There is some major of management functions in our business which is planning, organizing,
leading and controlling. In the planning, we are using a strategic, tactical and operational plan.
For operational plan, we are focusing on the customer as we want to attract more customers to
come visit our business. As for the tactical, we are planning to open new branch in the Malaysia
as well as our business progress is better soon. Finally, we are planning to achieve our strategic
plan which is get involved in the International Business (IB).
While, for the organizing, we are setting some activities to achieve our goals which is a
convenience and comfortable workplace to the employer and employees, produce quality clothes
that satisfy the customer needs, work together and shares values between employer and
employees, managing our business to get a healthy competitive between competitors, improving
our business by getting a direct feedback from our customers, try to maintain and increase the
profit from day to day and lastly look forward to get involved in the International Business (IB).
As for the structuring resources, we are trying hard to obtaining a high quality of raw materials
and goods and also employing the educated employees.
We are also practices a leading strategy in our management team which is employer always let
the employees to get involved in the decision making for certain parts of business to ensure that
the business will run smoothly without interruption of the outsider.
Last but not least, for controlling in the management, we are having a meeting once a week to
see our business progress as we are evaluating and correcting the performance of the business
activities.
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4.0 MANAGING EMPLOYEES
4.1 TRAINING
Training is the acquisition of knowledge, skills, and competencies as a result of the teaching of
vocational or practical skills and knowledge that relate to specific useful competencies. Training
has specific goals of improving one's capability, capacity, and performance. In addition to the
basic training required for a trade, occupation or profession, observers of the labor-market who
need to continue training beyond initial qualifications, to maintain, upgrade and update skills
throughout working life. People within many professions and occupations may refer to this sort
of training as professional development.
We offer a job vacancy to peoples who know in bakery. They must have a certificate in culinary
and knows how to bake. We are also taking some practical students who taking culinary course.
This will help them and also help us in saving our cost to pay them. We teach them how to bake
the cakes that have in our shop. It is our responsible to teach them the recipe of cakes, bun,
cupcakes and others that sold in our bakery shop. This is to ensure the food patability and the
equivalence taste of the food.
Our shop has our own machinery that are specialized to bake the cakes of own recipe. There are
quite a lot of techniques that need to be done to bake certain menu of cakes. Thus, we will train
our employees on how to manage, handle and use our own machinery. This will maintain the
quality, taste, sizes and colour of foods that we bake.
Materials and ingredients that are used to bake the foods must same and cannot be different. So,
we must train and warn our employees not to change and trick the customers by changing the
material and substance used to bake cakes. This will lead to dissatisfaction of the customers and
get sue. So, it is prominent to train them to use same materials.
In the field of employment, punctuality is the most important thing. Training them in how to
manage time and be punctual to work is one of our responsibilities too. To maintain good quality
and caliber of employees, the employees must obey the rules that are made by our company.
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4.2 MOTIVATING
Motivation may be regarded as a set of those wishes, desires, needs and drives which stimulate
or activate an individual to act. Motivation may also be defined as the process which inspires
individuals to contribute to the best of their capability for the achievement of organizational
goals. It is an effective instrument in the hands of the management to maximize efficiency of
operations. Higher motivation leads to job satisfaction of workers and makes them committed to
the organization.
There are 10 steps on how to motivate employees:-
1. Make sure you're setting a good example of productivity and cheerfulness. Don't let
your own moods distract other employees from their work.
2. Develop your listening skills. This means using active listening to its fullest potential,
not just pretending interest.
3. Be clear about the purpose of the job, and the big picture of the company's mission
and goals. Foster pride in working at that company, whether it is designed to make the
world's best sandwich or build the world's best bridge. Make sure everyone knows the big
picture and where their department and individual jobs fit in.
4. Don't let your personal likes and dislikes blind you to who is actually productive on
the job. Be fair.
5. Don't sweat the small stuff. If you have a good worker who is frequently 10 minutes
late, let them know that you expect them to be on time, but don't belabor the point if their
work is otherwise above average.
6. Set goals and reward the staff when the goals are achieved. The reward can be as
simple as a star on the calendar and a bigger reward at the end of the month if there are
enough stars for each day.
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7. Be open, friendly, and professional with the staff, they're your hard workers and
deserve to be treated with respect.
8. Make it an atmosphere where doing a good job is recognized and appreciated.
9. Encourage communication among people who have to work together. People may
feel blocked in and unable to relate to co-workers when they're hidden in a cubicle. Ask
the staff how they would like to see the workspace organized and set up opportunities for
people to work collaboratively.
10. If you have a problem employee, do not avoid the problem. Talk to that person and
make sure they know what they're doing wrong, as well as what they're doing right. Make
a plan and a time chart to correct problem behaviors. If the employee will not or cannot
improve after several performance meetings, and it is in your power to do so, terminate
their employment. It is very demoralizing to the other staff members to have a fellow
employee who isn't pulling their weight.
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4.3 EVALUATING
Evaluation is a systematic determination of a subject’s merit, worth and significant, using criteria
governed by a set of standards. It can assist an organization to assess any aim, realizable concept
or proposal, or any alternative, to help in decision making, or to ascertain the degree as
achievement or value in regard to the aim and objectives and results of any such action that has
been completed. The primary purpose of evaluation, in addition to gaining insight into prior or
existing initiatives, is to enable reflection and assist in the identification of future change.
Evaluation is often used to characterize and apprise subjects of interest in a wide range of human
enterprise, including the arts, criminal justice, foundations, non-profit organizations,
governments, health care, and other human services.
As we know, if we want to get loyalty from our employee we must do something that make our
employee feel appreciated. We have to protect our employee according to law and rules. And
they must be controlled with law and rules too. So, with evaluation we can control the employee
besides can change their attitude. We can evaluate their work every month and gives them some
reward for the best employee. Example the reward is bonus, gives title to them who work hard
such as best employee of the month. So, our employee will be more encouraged to do a work.
Other than that, through evaluation we can determine and improve our employees’ weakness.
Then, our employees will try to recovery their disability. Then, we can find any ability that our
employee has but they don’t realize it. Which they always have competed between each other’s.
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4.4 COMPENSATING EMPLOYEES
Ask any human resources consultant where financial compensation ranks in the hierarchy of
employee requirements, and you're likely to get a range of answers. Some say it's the most
important thing. Others declare wages are the only important thing. Still others say that while
financial compensation isn't the most important thing, it's important enough that if your pay isn't
fair, all the other employee benefits in the world may not be enough to keep employees on board.
Obviously, it's important to know whether you're paying enough and how to get the most for
what you're paying. In addition, you have to know how to bolster the actual dollars you lay out in
salary and wages with nonfinancial compensation.
Bonuses will be offered based on employee performance and overall production goals. Managers
will be salaried. Other employees will be paid on an hourly basis. To recruit and retain superior
staff, compensation will need to be very competitive. All the employees get a discount for
purchasing the company products.
As for now, our current financial status precludes us from offering any employee incentives,
however as the business grows and more employees are hired, we intend on providing basic
benefits such as retirement plans and group health insurance. Besides that, we will give their card
clinic so in certain clinic they will get discount.
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5.0 MARKETING PLAN
5.1 TARGET CUSTOMER
Our company’s target customers mainly are students and the residence at the Mount Austin
areas. Students whose studied at Sunway College will attracted to our bakery shop because based
on our research, those students prefer to eat light food rather than eating fast foods, rice and
noodles. Besides, the residence at the Mount Austin has increased due to the new condominium
has just developed. Thus, we target more customer will come, survey and attracted to our bakery
shop. Other than that, we also aim for a fixed customer which is weeding planner who will take
booking cakes from us when they have a reservation of a marriage to be made. So, we will deal
with the wedding planner for the booking.
5.2 PRODUCT
There are various light foods are offer in our shop. Those light foods which attract students from
Sunway College because they spent less time on eating and need to spend more time in studying.
Hence, they will prefer eat light food such as sandwiches, croissant, sesame pretzel, cinnamon
bread, coconut cookies, cupcakes, marble brownies and caramel pie. Moreover, the residence at
the Mount Austin will also buy products from our shop because we also do offer huge birthday
cakes and weeding cakes. We also accept reservation for any booking orders of cakes.
CAKES
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EXAMPLES OF BUNS :
- TUNA BUN - BLUEBERRY BUN
- CHICKEN FLOSS - SCALLION BUN
- EGG TART - RED BEAN ROLLS
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5.3 PRICE
We did survey other bakery shop around of our shop’s location. As a result, we produce almost
same quality of light foods as other bakery shop but, we sell those foods at a lower price and
affordable price for our target customer. This is because, normally students’ pocket money is
limited and they need to spend other thing for their studies. Thus, they will estimate their
spending money and chooses to buy at our shop at a cheaper price. We also put a lower price for
the birthday cakes and weeding cakes so that they afford and they feel worth it when they buy
cakes from our shop.
PRICE OF CAKE
Size/s Fruit Cake Sponge
6 inch RM45.00 RM20.00
8 inch RM60.00 RM30.00
10 inch RM70.00 RM37.00
12 inch RM110.00 RM44.00
14 inch RM260.00 RM80.00
17 inch RM290.00 RM90.00
We sell many type of cakes such as tiramisu, deluxe mud, tim tam cake and chocolate beehive.
The price of the type of cake is almost the same. But this is our assumption about the price of
cakes.
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PRICE OF BREAD
TYPE OF BREAD PRICE (RM)
Tuna bun 2.00
Flavor fruit bun 2.50
Chicken floss 2.00
Scallion bun 2.30
Egg tart 1.50
Red bean rolls 2.00
Hot dog bun 3.00
Pizza bun 3.00
Happy bun 2.50
Couple bread 5.00
France bread 3.00
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5.4 PROMOTION
To attract more customers, we do some promotions when buying our products. Firstly, we are
doing promotion on special event such as on Mother’s Day, Father’s Day and Valentine’s Day.
We are doing promotion by giving 10% discount off for every purchase of the cake on those
special days. We are not only giving discount to them but we are giving them a free gift to the
customers. Besides, we are also doing a promotion on purchasing of breakfast with less 30%.
However, there is the time limit for the breakfast time which is until 9.30 a.m. for another
promotion, we have other interesting and special offer which is, on the special event, we are
giving a free large chocolate cake for the 100th customer on that day. This will attract the
customer to buy cakes from our shop during the special event such as Mother’s day and other
events too. Furthermore, we are also provide a loyalty card for our regular customer. The
benefits of the loyalty card are, they are able to receive discounts and collect points to redeem a
reward. To promote our bakery shop, we are making pamphlets to distribute to people
surrounding. Besides, we also have banner that promote our bakery shop to peoples.
Our loyalty card for dearest regular customers :
BIG BANG BAKERY Membership
CUSTOMER’S NAME
55 732092731 2187
EXP DATE :
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5.5 PLACE
Our shop is a double-storey shop house. The location of our storey shop house is located at
center of the Mount Austin. There are many other shop houses around us such as mini market,
cyber café and boutique. In a nutshell, we are situated at one of the largest business park at the
Mount Austin. The reason why are we choosing that location is because the place is strategic and
become the focus of many people at there. Other than that, there is also a lot of executives offices
nearby, so it is one of our business strategy to have a shop at this area. Furthermore, there is also
a university nearby our shop (SUNWAY UNIVERSITY COLLEGE) roughly 200 meters from
our shop. (Shop will become famous among students) (Low advertising cost).
Our Big Bang Bakery Shop :-
We are Here !
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6.0 FINANCIAL PLAN
6.1 START UP COSTS ANALYSIS
PRODUCT UNIT COST
Bakery Machinery (Mixer) 3 RM 9000
Spiral Mixer 2 RM 7000
Infra-Red Electrical
Baking Oven
4 RM 28000
Refrigerator 6 door chiller 3 RM 21000
Dough Divider 3 RM 15000
Dough Moulder 3 RM 15000
Dough Shelter 3 RM 15000
Gas Heated
Baking Oven
3 RM 30000
Rental 3 month RM 9000
Ingredients - RM60500
Cooking supplies - RM 3000
Desk phone 2 RM 500
Salary and wages 10 employees RM 10000
Business license - RM 2000
Delivery van 2 RM 180000
Extra cash - RM 100000
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The total funds that we to run on our business is RM 400000 including all the stuff like bakery
equipment, vehicles, office supplies and petty cash. But to give our business stable we will make
a bank loan amounted RM 500000.
6.2 REVENUE / EXPENDITURE 3 MONTH FORECAST: VARIOUS TYPE
OF CAKES AND BREADS
MONTH 1 MONTH 2 MONTH 3
UNIT SALES (KG) 600 650 700
UNIT SALES (PER
KG)
RM 60 RM 60 RM 65
SALES REVENUE RM 36000 RM 39000 RM 45500
UNIT COST (PER
KG)
RM 18 RM 18 RM 20
TOTAL UNIT COST RM 10800 RM 11700 RM 14000
TOTAL PROFIT
PRE-EXPENSES
RM 25200 RM 27300 RM 31500
BUSINESS
EXPENSES
RM 17000 RM 17500 RM 18000
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0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
MONTH 1 MONTH 2 MONTH 3
6.3 EXPENSES: WHAT ARE THE EXPENSES
TYPES OF EXPENSES MONTH 1 MONTH 2 MONTH 3
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RENTAL RM 3000 RM3000 RM 3000
WATER AND
ELECTRICITY
RM 500 RM 550 RM 650
WAGES AND
SALARIES
RM 10000 RM 10000 RM 10000
TELEPHONE BILL RM 50 RM 50 RM 50
DELIVERY VAN
EXPENSES
RM 450 RM 900 RM 1300
LOAN RM 3000 RM 3000 RM 3000
TOTAL EXPENSES RM 17000 RM 17500 RM 18000
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7.0 CONTINGENCY PLAN
A contingency plan is a plan devised for an outcome other than in the expected plan. It is often
used for risk management when an exceptional risk that, though unlikely, would have
catastrophic consequences. Furthermore, there are also some plans to develop our business back
to normal.
Firstly, we must aim or main goal to maintains business operations, which is, we have to
minimum level of service and functionality.
Secondly, we have to keep the plan simple. We have to know what specifically will cause us to
implement the contingency plan.
Next, we have to manage our risk. We got to look for opportunities to reduce risk, wherever
possible. This will help to reduce, or even eliminate, the need of full contingency plans in certain
areas.
Besides, identify operational inefficiencies which are, provide a standard to document our
planning process and find opportunities for performance improvement.
Well, here is some contingency plan to do if our business plan fail, one of the plan is to reserve
some amount of money from the loan we made before, that is about RM 100,000. Moreover, we
also willing to sell one of the delivery van that our company owned to settle some debt. Other
than that, we decide to do business by using our delivery van and minimize our products, at the
same time we sell it at very low price and make sure we still have profit even though little until
our business’ condition back to normal. We decide to open a stall outside the Sunway University
College to boost our business performance.