ENT 300

FUNDAMENTALS OF ENTREPRENEURSHIP

ELEGLOW ENTERPRISE

INTRODUCTION

Industry Profile The most important thing to realize about the scarf

industry is that it changes constantly. Trends and styles come and go with the seasons, so it

is necessary for those working in the industry to be adaptable and ready adjust to the latest market demand.

If it's design that you're interested in there are a few things to consider.

An entrepreneur must also have the ability to predict and understand what consumers want even if that differs from what he or she thinks is fashionable.

FACTORS IN SELECTIONG THE PROPOSSED BUSINESS

Availability of Resources

Market Demands

Current Business Trends

Good Location

Capital or Fund

PURPOSE OF THE BUSINESS

PLAN

PURPOSE OF THE BUSINESS PLAN

To give us a chance to view and evaluate the business

To make research and evaluate whether the business are having a profit or loss.

To venture capitalist, investor and banker in order to raise capital and obtain support for the venture

As guidelines of routine management in the business

To give management an opportunity for entrepreneur to assess, view & appreciate the business venture objectively, critically & practically

To evaluate the project viability and growth potential

COMPANY BACKGROUND

MAIN ACTIVITY

Our company main activity is providing and selling fashion scarf. Our scarf have an exclusively “Glow in the Dark” effect.

LOCATION OF THE BUSINESS

Physical Location

Our physical company location is located at Kelana Centre Point which is a great location that can help improve our sales and productivity.

Map of the location

ORGANIZATION PLAN

COMPANY VISION, MISSION AND OBJECTIVE

VISION

To be a famous fashion of scarf producer in the region and provides the needs of the global “Muslimah” community

MISSION

To be a market leader in the production and distribution of fashion scarf product in Malaysia within five years and in Asia within the 15 years

OBJECTIVE

To establish and operate an international standard production needed for fashion scarf product in Malaysia

ORGANIZATION CHART

General Manager / AdministrationMuhammad Abdullah

Marketing ManagerNabila binti Awang

Ahmad Kafli

Operating ManagerNur Illya Syaheera

bt Mat Rodzi

Worker

Deliveryman

Financial ManagerNur Amiza Sahira

binti Mad Zali

ORGANIZATION BUDGET

Item

Fixed

Assets

Expenses

Monthly

Expenses

(RM)

Other

Expenses

Furniture

and Fittings3000    

Salaries   3200  

EPF

Contributio

n

  384  

SOCSO   80  

Telephone

Deposit    130

Total 3000 3664 130

MARKETING PLAN

PRODUCT DESRIPTION

Our company provide scarf for Muslims women. We bring the freshest scarf prints and “Glow in the Dark” designs.

Our scarfs are designed exclusively by our company because of the “Glow in the Dark” feature that we add.

The most common fabrics we select include polyester and silk to ensure the best and most comfortable fit possible.

The finishes we carry most often are chiffon, satin and crepe and most importantly our exclusive “Glow in the Dark” feature.

TARGET MARKETDemographic segmentation

We have decided to open our first branch in Kelana Centre Point, Petaling Jaya.

Our chosen location is basically a large town with a large number of populations and it shows huge potential to be developed ours product more.

Our companies is also located near others famous building, an educational institution and large portion of population, which is our primary target since most of our customer will consist of residential because scarf are always be the target for career woman to exchange their scarf on going to works

Our secondary target will be the teenager that lives around Kelana Jaya city. We mainly attract the teenagers that love in unique style of scarf.

MARKETING STRATERGY

Product

Brand

Fioxa is a brand’s named of our product.

Our company provide uncommon scarf which is ‘Glow in The Dark’.

In addition, our brand motto ‘Love it, Grab it, Wear it’ is an attraction because it will make people what the difference between our scarf and the other scarf in market.

Quality

Quality of our product is definitely suitable with our business.

As we convince our customer due to our quality of the product by maintaining the light of the scarf.

We also express elegance and sophistication.

In addition to this, the material are so soft and pleasant to wear.

Nothing can compare with the smoothness and also keep us cool and warm in any situation and seasons

Design

A sophisticated design is the sign of luxury scarf.

It means that the brands has invested time in creating something really unique and uncommon scarf.

We are not always aware of it but the beauty of a scarf comes both from its design and from the number and the subtlety of its colours.

A plain scarf or a scarf with a very few colours is fine if you like it this way

Packaging

We provide a nice and elegance packaging for our customer.

A special box if the customer buy more than three scarf meanwhile for the customer only one, he or she will get plastic bag.

At the plastic bag and the box we create an elegance and simple design that will attract customer’s interest.

At the bag and plastic bag, we put our number, logo, and email.

Our company’s had choose pink and black as a theme for elegance and simple design to colour our packaging.

Labelling

Labelling performs several functions such as identifying, grading, describing or even promoting the product.

Our labelling product is about the name of our company Eleglow Enterprise.

Our motto ‘Love it, Grab it, Wear it’ also will be display in our label.

We put the fabric and material as a guidance to customer to avoid they wash the scarves too rough.

Price (Cost-based pricing)

TYPE OF

PRODUCT

PRICE OF SCARF

Fareeda RM 200

Aidijuma RM 100

Ariani RM 150

EleGlow Price = cost per unit + mark up= RM 145 + (24% x RM145)= RM 179.80 @ RM 180

Distribution

Our strategies are involved many areas which are through the wholesalers then being distributed to the retailers and finally being distributed directly to the customers.

Direct to Consumer

EleGlow Enterprise Customer

We sell and manufactured our products which are scarf directly to the customer which are the one who pays to consume our product based on their satisfying needed and wants toward the scarf

Direct to Retailer

EleGlow Enterprise Retailer Customer

We had manufactured our scarf to the one intermediary level, the retailers which are a business or person that sells goods to the consumer.

So that we can expands to coverage by increasing the exposure and capturing the market and boosting our brand name within short time.

The selection of number and location widely depend on our coverage areas intended by our manufacturer EleGlow Enterprise through enlarge our product to the Malaysian market.

Promotion

Banner

We will put our banner on the front of the company office and alongside of the main road of Jalan SS 7/19 which will allow the pedestrian to see our banner. The cost of the banner is RM50.00 each. The size of the banner is 4 X 20 feet.

Flyers

We will distribute a flyers throughout the Kelana Centre Point offices and throughout the residence area. The flyers will be cost at RM50.00 per bundle. Each bundle will consist of 1000 of papers.

Business Card

We will give our business card to our customer and supplier that come to make business with us. The cost of the business card is RM70.00 per pack

Signboard

We will put a company signboard on the front of the company office. The signboard will be cost at RM3000.00

Flyers inside newspaper

We will put our flyers inside the newspaper such as Berita Harian which will cost RM 250.00. The total of flyers we will put inside the newspaper is 5000 pieces.

Social Media

We will advertise our product on social media by using internet on websites, email and social network such as Facebook and Twitter.

MARKETING BUDGETItem Fixed Asset

Expenses (RM)

Monthly

Expenses (RM)

Other

Expenses (RM)

Laptop 900    

Signboard 3000    

Salary   1500  

Wi-Fi   130  

EPF   180  

SOCSO   37.50  

Flyer under

Newspaper

  250  

Deposit Wi-Fi     100

Banner     65

Flyers     50

Business Card     70

Total 3900 2,097.50 285

OPERATION PLAN

PROCESS PLANNING Activity Flow Chart

Delegate the fabrics into the storage areas, place those fabrics based on gred arrangement.

In the storage area, check the quality of the fabrics and separate the fabrics.

Drawing area to create the design and bring to measurement area then bring to cutting area.

Cut the fabrics based on measurement required.

Transfer the fabrics from cutting area to sewing machines area for sewing process.

Shredded and put the fabrics into pieces in the sewing machine for lining process of every edges of the scarf.

After sewing process, fabric or knitted material used for making scarf.

Next, transfer fabrics colouring area for ultimate step of glowing in the dark scarf.

Last step is moved the fabrics from colouring area to drying area process for complete look of scarf. The total processed to complete dry within 24 hours.

Process Flow Chart

Purchasing of scarf materials.

Storage the fabric and scarf material.

Arrange and place the scarf accordingly.

Draw the fabric based on measurement.

Cutting the materials to measure size.

Quality inspection.

Transport the materials that have been to tailor’s table.

Sewing by tailors.

Coloring.

Transfer to the drying area.

Dry the scarf.

Quality inspection.

Packaging the scarf neatly.

Storage before shipping out.

OPERATION LAYOUT

OPERATION BUDGET

Item Fixed Assets Expenses (RM)

Monthly Expenses (RM)

Other Expenses (RM)

Machine and equipment

2400    

Van 22000    Shop rental   6000  Utilities   1280  Insurance   900  Salary   3300  EPF   396  Oil and gas   800  SOCSO   82.50  Shop Deposit     1000Maintenance     250License     130Road tax     90Overhead Expenses

    158

  24400 12, 785.50 1628

FINANCIAL PLAN

PROJECT IMPLEMENTATION COST SCHEDULE

  RM RM RM

Capital expenditure:      

Marketing:

Signboard

Laptop

 

Operation:

Sewing machine (2)

Van

 

Administration:

Furniture and fittings

 

Sub-total

 

3000

900

 

 

2400

22 000

 

 

3000

 

 

3900

 

 

 

24400

 

 

3000

 

 

 

 

 

 

 

 

 

 

 

31 300

Working capital (1 month):

Marketing:

Salary for marketing manager (EPF+SOCSO)

Flyers under Newspaper

Wi-Fi

 

Operation:

Salary for Operation Manager (EPF+SOCSO)

Salary for Operational Assistant

(EPF+SOCSO)

Salary for driver (EPF+SOCSO)

Shop rental

Utilities (water and electricity0

Insurance

Toll and mileage

 

Administration:

Salary for General manager (EPF+SOCSO)

Salary for Financial manager (EPF+SOCSO)

 

Sub-total

 

 

1717.50

 250

130

 

 

1717.50

 1030.50

1030.50

6000

1280

900

800

 

 

1946.50

 1717.50

 

 

 

 

2097.50

 

 

 

 

 3778.50

 

 

 

8980

 

 

 

 3664

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

18520

Other expenditure:

Marketing:

Banner

Flyers

Business cards

 

Operation:

Maintenance

License

Road tax

Overhead expenses

 

Deposits:

Wi-Fi

Shop

Utilities ( water and electricity)

Telephone

 

Sub-total

 

Grand total

 

 

65

50

70

 

 

250

130

90

158

 

 

100

1000

640

130

 

 

 

 

 

 

185

 

 

 

 

 

628

 

 

 

 

 

1870

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2683

 

52 503

Add:

Contingency cost (10%)

 

TOTAL PROJECT IMPLEMENTATION COST

 

 

   

5250.30

 

 

57 753.30

SOURCE OF FINANCING  RM RM Internal Sources :

   

Cash ( 4 partners )    - Muhammad bin Abdullah 3 938.32  - Nabila binti Awang Ahmad Kafli 3 938.32  - Nur Illya Syaheera binti Mat Rodzi 3938.32  - Nur Amiza Sahira binti Madzali 3938.32  

    15 753.30 Assets :    - Van 22 000 22 000

     Sub-total   37 753.30      External Sources :

   

     Term loan 20 000       Sub-total   20 000      Other Sources :

   

-    TOTAL SOURCES OF FINANCE   57 753.30

PRO FORMA CASH FLOW STATEMENT (ANNUALLY ONLY) FOR 3 CONSECUTIVE YEARS  Year 1 Year 2

( 2% )Year 3( 4% )

Cash inflow : Equity Contribution – Cash ( 4 partners )

 15 753.30

 -

--

Term Loan 20 000 - - Sales 2 880 000 2 937 600 3 055 104Total Cash Inflow : 2 915 753.30 2 937 600 3 055 104Cash Outflow :      Marketing Expenditure : Salary for Marketing Manager

 20 610

 21 022.20

 21 863.10

Flyer under Newspaper 3 000 3 060 3182.40 Wi-Fi 1 560 1 591.20 1 654.80Others Marketing Expenses :       Banner 65 66.30 69 Flyers 50 51 53 Business card 70 71.40 74.30Operation Expenditure : Raw Material

 2 320 002

 2 366 402

 2 461 058.10

Direct Labour 45 342 46 248.80 48 098.80 Shop Rental 72 000 73 440 76 377.60 Utilities ( Water & Electricity ) 15 360 15 677.20 16 293.90 Insurance 10 800 11 016 11 456.60 Toll and Mileage 9 600 9 792 10 183.70

Others Operation Expenses : Maintenance

 250

 255

 265.20

License 130 132.60 137.90 Road tax 90 91.80 95.50 Overhead expenses 158 161.20 167.60Administration Expenditure : Salary for General Manager

 23 358

 23 825.20

 24 778.20

Salary for Financial Manager 23 358 23 825.20 24 778.20Loan Repayment : Principle

 4 000

 4 080

 4 243.20

Interest 1 000 1 020 1 060.80Capital Expenditure : Machinery and Equipment

 2 400

 -

 -

Furniture and Fittings 3 000 - - Motor Vehicle ( Van ) 22 000 - - Signboard 3 000 - - Laptop ( Marketing ) 900    Deposits 1 870 - -Total Cash Outflow 2 581 225 2 601 829.10 270 5891.90

Cash Surplus / ( Deficit ) 334 528.30 335770.90 349 212.10Beginning Cash Balance 0 334 528.30 670 299.20Ending Cash Balance 334 528.30 670 299.20 1 019 511.30

PRO FORMA INCOME STATEMENT (3 CONSECUTIVE YEARS)

  Year 1 ( RM ) Year 2 ( RM ) Year 3 (RM )

SALES 2 880 000 2 937 600 3 055 104COST OF GOOD SOLD (COGS)      Opening stock for finished goods 0    Add : Cost of goods manufactured 2 396 792 2 449 510.20 2 503 881.30

Goods available for sale 2 396 792 2 449 510.20 2 503 881.30

Less : Closing stock for finished goods ( 31/12 )

0    

       GROSS PROFIT 483 208 488 089.80 551 222.70       Less : Expenditure      Marketing expenditure 25 170 25 673.40 26 700 3Administration expenditure 43 968 44 847.40 46 641.30Other expenditure 185 188.70 196.30Interest on Loan 1 000 800 600Depreciation for Fixed assets 1 380 2 760 4 140       Total Expenditure 71 703 74 269.50 78 277.90Net profit Before Tax 554 911 562 359.30 629 500.60Tax 0 0 0Net Profit After Tax 554 911 562 359.30 629 500.60Accumulated Net Profit 554 911 562 359.30 629 500.60

PRO FORMA BALANCE SHEET (3 CONSECUTIVE YEARS)

  Year 1 Year 2 Year 3

Fixed Assets (Book Value)

Motor Vehicles (Van)

Furniture and Fittings

Machinery (Sewing Machine)

Laptop

Signboard

 

 

17 600

2 400

1 920

720

2 400

 

 

13 200

1 800

1 440

540

1 800

 

 

8 800

1 200

960

360

1 200

 

Current Assets

Cash

Account Receivable

 

334 528.30

85 720

 

 

677 654.60

87 434.40

 

 

1 032 522.20

90 931.80

-

  590 664.30 776 513.60 1 122 963.10

Owners’ Equity

Capital

Accumulated profit

 

15 753.30

554 911

 

15 753.30

562 359.30

 

 

15 753.30

629 500.60

 

Current Liabilities

Account payable

 

-

 

182 401

 

465 709.20

 

Long Term Liabilities

Term Loan

 

20 000

 

16 000

 

12 000

 TOTAL EQUITY AND LIABILITIES 590 664.30 776 513.60 1 122 963.10

FINANCIAL ANALYSIS (CURRENT RATIO NET PROFIT MARGIN ONLY) FOR 3 CONSECUTIVE YEARS

  YEAR 1 YEAR 2 YEAR 3

CURRENT

ASSET

RM 420 248.30 RM 757 733.60 RM 110 443.10

CURRENT

LIABILITIES

RM 0 RM 182 401 RM 182.401

CURRENT

RATIO

0 4.51 Times 5.58 Times

ANALYSIS The business has the ability to generate cash to

meet the short-term obligations.

Year 1 (0) Year 2 (4.51) Year 3 (5.58)0

1

2

3

4

5

6

Current ratio for three consecutive year

CONCLUSION

In general conclusion, Eleglow Enterprise will meet its goals by following the Business Plan.

Our target market is mainly focus on women in various age. With the start up capital total up RM 15753.30 Eleglow Enterprise will grow into a larger company.

By following the plan, Eleglow Enterprise will grow up to 4% of sales in the first 3 years after its initial launch.