business proposal

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1 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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1

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.

2

- 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.

3

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 WEEDING CAKES :

EXAMPLES OF OTHER CAKES :

- VALENTINES CAKE

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EXAMPLES OF BUNS :

- TUNA BUN - BLUEBERRY BUN

- CHICKEN FLOSS - SCALLION BUN

- EGG TART - RED BEAN ROLLS

22

EXAMPLES OF CUPCAKES :

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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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First floor :

Second floor :

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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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TOTAL PROFIT RM 8200 RM 9800 RM 13500

Forecast For Three Month Expenditure

31

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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EXPENSES PER MONTH

MONTH 1MONTH 2MONTH 3

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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.