COVER LETTEREntrepreneurship Students, Bachelor of Computer Science (Computer Security), Universiti Teknikal Malaysia Melaka, Hang Tuah Jaya, 76100 Durian Tunggal, Melaka, Malaysia. Datin Suraya Binti Ahmad, Technology Entrepreneurship (BTMW 4012), Universiti Teknikal Malaysia Melaka, Hang Tuah Jaya, 76100 Durian Tunggal, Melaka, Malaysia. 23rd December 2016 Madam, SUBMISSION OF BUSINESS PLAN (BTMW 4012) Followed by the references above, we as part three student group of Technology Entrepreneurship Bachelor of Computer Science (Computer Security), would like to submit our business plan report. 2. According to our business plan, we are agreed to establish our business as partnership. We choose CAD Laundry as our company name, which provides laundry services. Our target is for all resident and worker area in Bukit Beruang, Melaka. 1 3. With this report, we hope that we have fulfill the satisfactions of the objectives of taking BTMW 4012 subject. We are feeling very great full because we were exposed to the basic requirement, procedure and strategies before we really involved in the actual business. Thank you. ................................................... Muhammad Soleh Manuel Bin Abd Rahman Dairi 951030-02-5449 General Manager ................................................... Azri Bin Khairul Anuar 930403-14-5855 Administrative Manager .................................................. Hanafi Bin Rosdi 950520-01-5919 Marketing Executive ................................................... Mohamad Ashraf Firdaus Bin Mat Zain 960117-03-5943 Operational Manager ................................................... Siti Afifah Binti Kadian 960205-01-5280 Financial Manager 2 Agreement of Partnership This project was made by the agreement between the following personnel: Name Muhammad Soleh Manuel Bin Abd Rahman Dairi IC no. 951030-02-5449 Position General Manager Capital RM 20000.00 Name Azri Bin Khairul Anuar IC no. 930403-14-5855 Position Administrative Manager Capital RM20000.00 Name Hanafi Bin Rosdi IC no. 950520-01-5919 Position Marketing Executive Capital RM 10000.00 Name Mohamad Ashraf Firdaus Bin Mat Zain IC no. 960117-03-5943 Position Operational Manager Capital RM 10000.00 Name Siti Afifah Binti Kadian IC no. 960205-01-5280 Position Financial Manager Capital RM 10000.00 Due to this agreement of partnership, it can be stated that; i. This business shall be name as CAD Laundry company. ii. Each company shareholder is entitled to receive company salary and intensive as reward for their involvement in the company. iii. Resignation notice must be made in 30 days period before the resignation. iv. Any decision only is accepted with the authorization from the General Manager. v. If any shareholder wanted to resign or retire from the company with concrete reason, therefore the company will return back their share, unless, that person wants to sell his shareholders. For the witness of this agreement, therefore the company shareholders need to design the agreement in front of the witness on the date when this proposal is declared. 3 Yours truly, ................................................... Muhammad Soleh Manuel Bin Abd Rahman Dairi 951030-02-5449 General Manager ................................................... Azri Bin Khairul Anuar 930403-14-5855 Administrative Manager ................................................... Hanafi Bin Rosdi 950520-01-5919 Marketing Executive ................................................... Mohamad Ashraf Firdaus Bin Mat Zain 960117-03-5943 Operational Manager ................................................... Siti Afifah Binti Kadian 960205-01-5280 Financial Manager 4 Letter of Business Loan Muhammad Soleh Manuel Bin Abd Rahman Dairi 59 Jalan Bukit Beruang Indah 1, Taman Bukit Beruang Indah , 75450 Bukit Baru, Melaka. Maybank Ayer Keroh Branch, No.G4 & G6 Lebuh Ayer Keroh 75450 Ayer Keroh, Melaka, Malaysia. 12 FEBRUARY 2016. Sir, PURPOSAL FOR LOAN APPLICATION Based on the matter above, I just like name above, General Manager of company CAD Laundry would like to apply a loan from Maybank. 2. Our company is a new company. As such, the amount to be applied is RM100,000 only. We demand loan as our own capital to start this business in opening a laundry are not enough to support in future needs especially in equipment operation. 3. This is because, we strongly believed that our company has a potential to move forward and has ability to complete with other well established companies. I believed that this financial institution given support for new entrepreneur as we are. This Business plan will show about the whole plan of our company. 4. Full consideration from your company will help us run the business smoothly and assistance given preceded by thanks. Thank you, Sincerely appreciated, ……………………… (Muhammad Soleh Manuel Bin Abd Rahman Dairi) General Manager CAD Laundry. 5 BTMW 4012 TECHNOLOGY ENTREPRENEURSHIP CAD LAUNDRY 59 Jalan Bukit Beruang Indah 1, Taman Bukit Beruang Indah , 75450 Bukit Baru, Melaka. Prepared by: Name Student ID Muhammad Soleh Manuel Bin Abd Rahman Dairi B031510141 Azri Bin Khairul Anuar B031510012 Hanafi Bin Rosdi B031510108 Mohamad Ashraf Firdaus Bin Mat Zain B031510163 Siti Afifah Bin Kadian B031510173 PREPARED TO: Datin Suraya Binti Ahmad GROUP: BTMW 4012 DATE SUBMISSION: 23.12.2016 6 TABLE OF CONTENT Executive Summary.............................................................8 Introduction……………………………………………………9 Purpose for preparing Business Plan………………………….10 Company Background…………………………………………11 Owner/ Partners Background………………………………….12 Location of the Premise……………………………………….. 17 Administrative Plan…………………………………………. 19 Marketing Plan……………………………………………….... 28 Operation Plan…………………………………………………. 41 Financial Plan…………………………………………………... 57 Conclusion…………………………………………………….... 72 7 EXECUTIVE SUMMARY CAD Laundry is about a business that provide laundry services to the elite resindential area in Bukit Beruang, Melaka. A busy lifestyle of the resident has a high possibility that will contribute them to send their clothes to our shop as they are not being able to manage their laundry. This business plan is provided with the operation, marketing, administration and financial plan which being manage by all of the members of the project. The operation plan will explain all the processes and steps in producing the products starting from the raw material that will use for laundary to the using modern machines and technology. Marketing plan will show the marketing strategies to earn maximum profit in our business and compete with other competitors to maintain the business in the market. Administration plan will provide all the internal data of the company including organizational chart and salary made to the managers, staffs and workers. Besides that, their responsibilities will be stress on this plan to ensure their maximun productivity to the tasks. Financial plan will show the financial progress of the business that is important to maintain and stabalize inflow and outflow of the money. Our company will be operated in the early year of 2017, so our financial entity will be track on the 1st January 2017. For the first year, financial statement will be counted each month followed by yearly assessment. Our capital to run our business is about RM 70000. In final consideration, our company is confident to provide quality services to the customers. 8 INTRODUCTION Our business choose is laundry business and name our company CAD laundry. CAD Laundry is a laundry shop that will equipped with the most recent technology. The shop are planned to be placed at the elite residential area Bukit Beruang, Melaka. The location was chosen due to the busy lifestyle of the resident at the area. A busy lifestyle has a high possibility that will contribute them to send their clothes to our shop as they are not being able to manage their laundry. Despite of the strong competitors in the area, we are sure that we will have a bright future based on the services that we are going to offer. All the committee had agreed to commence the business at 1st January 2017. We have chosen this date due to accumulate the capital to start up this business in 2017. Furthermore, partners needs time to do more research on the types of detergent will be used, where to get the supplier and how to handle the fabric that will be washed. This is to satisfy the customers due to the services that will provide. The partners also will seek information via website that provides information about laundry services. This is to ensure enough knowledge adapted by each partners before starts the business and set up the date of business. CAD offers the best services in laundry for customers. It provides laundry services like wash, dry, fold, dry cleaning, ironing and delivery to customers. This laundry can easily full the demands of the customers because the services are using the latest machines and equipments. As the area was an elite residential area, thus the customers might range from corporate officers, the wedding boutiques’ owners and the person that might be have an expensive clothes. CAD will be promote our service via advertisement directly and indirectly such as spread the pamphlet, give the business card, social network and others. The marketing department will always make sales promotion on short term incentives or use special offers such as by giving discount to regular customers. This department plays an important role in ensuring the promotion of the company and developing the market strategy. Our laundry will provide membership card to attract the customers and gives a good prices of the services. 9 Factors in selecting the proposed business 1. A busy lifestyle in Bukit Beruang has a high possibility that will contribute the residential to send their clothes to our shop as they are not being able to manage their laundry. 2. Services does not have expired date compared to products. 3. High demand in this location. PURPOSE FOR PREPARING THE BUSINESS PLAN 1) To apply loan - This business plan is prepared by CADE for the purpose to obtain the working capital loan from Maybank for RM 75,000 2) As a guideline for managing the proposed business - Business plan is important in guiding to manage the flow of the business. Without business plan, our business will not run smoothly. It will allow us to handle and manage the business effective and efficiency regarding the strategies that formulated in the business plan. 3) To convince investors - To convince the investors in order to invest for our business by ensuring the business plan is prepared properly. 4) As a guideline for the owners to allocated the resources efficiently. - It is important for the owner to plan, distribute and monitor the resources in producing the product and to avoid surplus and shortage of the resources 10 COMPANY BACKGROUND Name of Company CAD Laundry Business Address 59 Jalan Bukit Beruang Indah 1, Taman Bukit Beruang Indah , 75450 Bukit Baru, Melaka. e-mail address
[email protected] Office no. +606-2003355 Fax +606-2003346 Business partners Muhammad Soleh Manuel Bin Abd Rahman Dairi Azri Bin Khairul Anuar Hanafi Bin Rosdi Mohamad Ashraf Firdaus Bin Mat Zain Siti Afifah Binti Kadian Form of Business Partnership Main Activity Laundry Service Date of Commencement 1 January 2017 Registration no. MAL19976399X Registration Date 1 September 2016 Name of Bank Maybank Bank Account no. 1644902443 Equity contribution: Name Percent (%) RM MUHAMMAD SOLEH MANUEL BIN ABD 25 20000 RAHMAN DAIRI AZRI BIN KHAIRUL ANUAR 18.75 15000 HANAFI BIN ROSDI 18.75 15000 MOHAMAD ASHRAF FIRDAUS BIN MAT ZAIN 18.75 15000 SITI AFIFAH BINTI KADIAN 18.75 15000 Total 100% 80,000 11 GENERAL MANAGER NAME : Muhammad Soleh Manuel B Abd Rahman Dairi IDENTITY CARD NUMBER : 951030-02-5449 ADDRESS : Tnb 25 kg. tepi Laut 06600 Kuala Kedah, Kedah Darul Aman E-MAIL ADDRESS :
[email protected] TELEPHONE NUMBER : 011-50750064 DATE OF BIRTH : 30/10/1995 AGE : 21 Years Old MARITAL STATUS : Single ACADEMIC QUALIFICATION : Sijil Pelajaran Malaysia COURSES ATTENDED : Degree In Computer Security SKILL : Good in software computer PRESENT OCCUPATION : Student PREVIOUS BUSINESS EXPERIENCE : Simenfero Development Sdn Bhd. 12 ADMINISTRATIVE MANAGER NAME : Azri Bin Khairul Anuar IDENTITY CARD NUMBER : 930403-14-5855 ADDRESS : 35, Jalan Setapak Indah, 53300 Kuala Lumpur E-MAIL ADDRESS :
[email protected] TELEPHONE NUMBER : 011-26538475 DATE OF BIRTH : 03/04/1993 AGE : 23 Years Old MARITAL STATUS : Single ACADEMIC QUALIFICATION : Sijil Pelajaran Malaysia COURSES ATTENDED : Bachelor in Computer Science (Computer Security) SKILL : Leadership Skill WORKING EXPERIENCE : Dispatch PRESENT OCCUPATION : Student PREVIOUS BUSINESS EXPERIENCE : None 13 MARKETING MANAGER NAME : Hanafi Bin Rosdi IDENTITY CARD NUMBER : 950520-01-5919 ADDRESS : No 553, Jalan Haji Mahmood, Batu 17, Kampung Sungai Tiram, 81800, Ulu Tiram, Johor. E-MAIL ADDRESS :
[email protected] TELEPHONE NUMBER : 013-7731872 DATE OF BIRTH : 20/05/1995 AGE : 21 Years Old MARITAL STATUS : Single ACADEMIC QUALIFICATION : Degree in Marketing Management, Universiti Utara Malaysia SKILL : Fluent in English, Malay, Chinese and good in communication with client WORKING EXPERIENCE : Supervisor PRESENT OCCUPATION : Student PREVIOUS BUSINESS EXPERIENCE : Marketing planning 14 OPERATION MANAGER NAME : Mohamad Ashraf Firdaus Bin Mat Zain IDENTITY CARD NUMBER : 960117-03-5943 ADDRESS : Blok L 04-07, Bandar Baru Permas Jaya, 81750 Johor Bahru, Johor E-MAIL ADDRESS :
[email protected] TELEPHONE NUMBER : 013-9031701 DATE OF BIRTH : 17/01/1996 AGE : 20 Years Old MARITAL STATUS : Single ACADEMIC QUALIFICATION : Bachelor in Business Administration - Business Management COURSES ATTENDED : MBA in Operations Management SKILL : Speaks in English Fluent and good in Calculation WORKING EXPERIENCE : None PRESENT OCCUPATION : Student PREVIOUS BUSINESS EXPERIENCE : None 15 FINANCIAL MANAGER NAME : Siti Afifah Binti Kadian IDENTITY CARD NUMBER : 960205-01-5280 ADDRESS : No.767, Lorong 2/1A, Taman Sri Wang, 08000 Sungai Petani. E-MAIL ADDRESS :
[email protected] TELEPHONE NUMBER : 013-7068156 DATE OF BIRTH : 05/02/1996 AGE : 20 Years Old MARITAL STATUS : Single ACADEMIC QUALIFICATION : Sijil Pelajaran Malaysia COURSES ATTENDED : Bachelor in Computer Science (Computer Security) SKILL : Leadership Skill WORKING EXPERIENCE : cashier PRESENT OCCUPATION : Student PREVIOUS BUSINESS EXPERIENCE : None 16 LOCATION OF THE BUSINESS Business location : 59 Jalan Bukit Beruang Indah 1, Taman Bukit Beruang Indah , 75450 Bukit Baru, Melaka.. Physical location : Facing Main Road Jalan Bukit Beruang Size of the building : 20x70 ft Rent (per month) : RM 8000 Cost of renovation : RM 10000 Basic amenities : Water, electricity and telephone line. Location map : Figure 1: Location Map 17 Figure 2: Shop 18 ADMINISTRATION PLAN Introduction In any organization, the administration management is essential to the existence, success, or operation in order to manage, control and keep in good working order the flow of the business of the company. An administration involves planning, organizing, leading, and controlling all of the business activities and performance. The most significant about the administration management is the worth of the work done to ensure that all the customer who dealing with our company may feel satisfaction contented. In this case, only the effective and efficient administration will achieve the objectives and goals of the organizations. In order to run all the business activities smoothly, the administration should provide enough office equipment and facilities. It will encourage the worker to work in a motivated mood and comfortable environment. Those entire things are done so that they will increase their productivity, quality and performance of work and help in the growth of company. Administration also prepares the organization chart to show the hierarchy of the organization. Thus, this department is important to manage all the business activities in order to run the business as what the company expected. 19 i. Vision To be among the leading corporation in laundry and related businesses globally ii. Mission We aim to be better quality, innovation, and has the advantage of available services. We are here to enrich the world of entrepreneurship in all parts of the world. We anticipated consumer need and deliver service that fulfill people wants and needs. Provide labor are responsible to the company's activities run smoothly Responsible for providing enough equipment to perform maintenance work on the orderly Perform the work that has been assigned to the trust and dedication Providing the best service to all customers iii. Objectives To expand our business during the first 3 years comings through the country . To give job opportunity to the local people 20 ORGANIZATIONAL CHART GENERAL MANAGER Muhammad Soleh Manuel ADMINISTRATIVE MARKETING OPERATIONAL FINANCIAL MANAGER MANAGER MANAGER MANAGER Azri Khairul Anuar Hanafi Rosdi Ashraf Firdaus Siti Afifah POSITION AND NUMBER OF STAFF POSITION NUMBER OF STAFF GENERAL MANAGER 1 ADMINISTRATIVE MANAGER 1 MARKETING MANAGER 1 OPERATIONAL MANAGER 1 FINANCIAL MANAGER 1 TOTAL 5 21 SCHEDULE AND TASK RESPONSIBILITIES POSITION MAIN TASKS GENERAL 1. Plan, organize, lead and control the management and MANAGER operation of the business overall 2. Accountable for the overall performance of the business and ensuring stability. 3. Conduct manpower and guide the business toward its mission, vision and objectives. 4. Manage and oversee liaison matters with external partners. 5. Ensure that the business is always ethical. ADMINISTRATIVE 1. Gathering, adapting, storing and distributing information within the company. MANAGER 2. Dealing and meeting with the customers. 3. Support other departments and managers. 4. Ensuring that human and material resources utilized 5. Controlling all administrative functions. 6. Dealing and meeting with customers’ registration and class schedule. 7. Do the typing of formal letters business matters. MARKETING 1. Generate and update key marketing strategies that includes price, potential and existing product, place and promotion. MANAGER 2. Identify target market and what motivates new customer and how to retain repeat customers. 3. Be alert with competitors, and the company’s market share. 4. Communicate with all marketing external forces including advertising promotional matters. 5. Provide the marketing budget. OPERATIONAL 1. Manage, oversee and organize the establishment’s operations of production, controlling the quality of product and services. MANAGER 2. Manage the business inputs as such that output will continuously bring profitable income. 3. Research and development of products selling price. 4. Contacts external sales-related companies and prepare administrative schedule and budgets. FINANCIAL 1. Establish and maintain the company’s financial position at all times. MANAGER 2. Oversee profit and loss, cash inflow and outflow, and the capital structure of the organization. 3. Determine financial viability for new proposed projets/ products. 4. Collect and updates accounting budgets from sales and admin, operations, marketing and finance 5. Liason with external financial creditors and banks. 22 Schedule of Remuneration Position No. Monthly EPF SOCSO Amount of salary contribution (1.85%) (RM) staff (RM) (13%) (RM) (RM) General Manager 1 1000 130 18.50 1148.50 Administrative Manager 1 1000 130 18.50 1148.50 Financial Manager 1 1000 130 18.50 1148.50 Operational Manager 1 1000 130 18.50 1148.50 Marketing Manager 1 1000 130 18.50 1148.50 TOTAL(RM) 5742.50 List of Equipment No Items Quantity Price per Total cost(RM) unit(RM) 1 Telephone and Fax Machine 1 400 400 2 Computer set 1 1500 1500 3 Filling Rack 6 80 480 4 Notice board 1 25 25 5 Calculator 2 20 40 6 Printer + ink 1 250 250 7 Dustbin 4 5 20 8 First aid kit 1 50 50 9 Fan 6 100 600 10 Stationeries 50 50 Total(RM) 3415 23 List of Office Furniture and Fittings No Items Quantity Price per Total unit(RM) Cost(RM) 1 Table 6 100 600 2 Chair 12 12 144 3 Sofa 1 250 250 4 Cabinet 1 200 200 5 Office renovation 10000 Total(RM) 11,194 Other Expenses No Items Total cost(RM) 1 Business license 200 2 Business registration 60 260 24 Layout Office 25 Administration Budget Particular Fixed Assets Expenses Monthly Other Expenses (RM) Expenses (RM) Salary + EPF 5742.50 +SOCSO Office Furniture 11,194.00 and Fittings Office Equipment 3415.00 Business 60.00 Registration Business license 200.00 and permit Land and 13000.00 Building(rental) Rental Deposit 26000.00 Utilities Deposit 1000.00 Building(insurance) 1000.00 Maintenance 250.00 Total 14609 19,742.50 27,510.00 Grand total(RM) 61861.50 26 MARKETING PLAN a. Marketing Objective To ensure that our business can be run smoothly and it is a real part in order to build a new business. To create a new profile and investing with high quality of laundry services in order to gain a higher profit by providing an effective promotion strategy. To offer the best service to the customer, to provide the convenience negotiation service to the customer and to ensure that customer can get high quality of laundry services. b. Service description Company name is offering laundry services such as dry cleaning, ironing, normal wash, and hand wash. Our company is located at Bukit Beruang, Melaka. Our company also sends deliveries by registering a membership card. But we have the special case that we need to be very careful when doing the laundry service such as silk or cloth that have accessories or other, thus the price is added more from normal. 27 Table 1:List of services provided Services Types of service Cost price normal Cost price special case (RM) (RM) Service A Dry Cleaning RM10/ pair RM13/ pair Service B Ironing RM3 / pair RM 5/pair Service C Normal Wash RM6 / kg - Service D Hand Wash RM3 / pair RM 5 Service E Delivery RM10 - 28 c. Target market We open the laundry to ensure that our laundry service efforts will fulfill the needs of the customers. The reason we choose a shop lot at Bukit Beruang, Melaka because it is strategically stated in elite residential area and this laundry service is necessary to them. This location also near to certain workplace such as Kolej Komuniti Bukit Beruang, Utem student hostel, Hospital Melaka, Ibu Pejabat Polis Kontinjen Melaka and not far from Multimedia Universiti. Table 2.1: Target market MARKET SEGMENTATION LOCATION/ADDRESS 1.Geographic District Bukit Beruang, Melaka Residency In Bukit Beruang, they have a lot of housing area, school and supermarket Have 30 thousands families living in Bukit Beruang with their family. 2.Demographic Occupation Kolej Komuniti Bukit Beruang, Utem Student Hostel, Hospital Melaka, MMU Campus. Social Class Elite Class residency Income RM5000 and above 3.Psychographics People with busy lifestyle and no time to wash their cloth. 29 Table 2.2: Target market Market segmentation Address IPT Student Kolej Komuniti Bukit Beruang, Universiti Teknikal Malaysia Melaka and Multimedia Universiti. Hospital & clinics Hospital Melaka, Clinics area Bukit Beruang, Melaka. Boutique Bukit Beruang, Melaka Hotel, Motel, Home stay Bukit Beruang, Melaka Workers Bukit Beruang, Melaka Family Bukit Beruang, Melaka d. Market size We have seen the opportunities of a target market of household and living quarters within 25 kilometers per square in the targeted area. There are three major market segments: families (75,346), other and worker (81,583) , single person (31,392) and student (5,034). The total of target market population in Bukit Beruang is 193,355 50% of the population will use the laundry service 50 𝑥 193,355 = 96,678 100 30 Table 3: Market Size Market Size Purchase per week Purchase per month (RM) (RM) IPT Student 2500 10,000 Other Hospital & clinic Boutique Hotel, Motel, Home 25,000 100,000 stay Uniform worker Workers 17,500 70,000 Family 32,500 130,000 Total 77,500 310,000 𝟑𝟏𝟎𝟎𝟎𝟎 𝑿 𝟏𝟐 = 3720000 Estimate the potential sales for the year as RM 3,720,000. The business consider factor that may affect sales: i. Increasing sale: Festival seasons( Hari Raya, Deepavali, Chinese New Year) Weather conditions (Raining) ii. Decreasing sale: School Holiday Weather condition (sunny day) After consider the factor, estimate the market size to be only RM 3,670,000 per year 31 e. Competitors Table 4: Competitors Name of competitors Strength Weaknesses - T2 is lack of promotion - The laundry service is strategy. cheap. - The location is too far T2 - They also provide deliveries and had expensive lot to home. parking. - It is well established since - The service laundry is Aqua Nano they had branches to be expensive. referred. - They have surcharges - The workers are customer fee for every late pick- friendly. up laundry. - The location of the shop is - Press To do not Press To near to the main road and providing deliveries easy to park. from shop. - They use green detergent as - The shop is house- promoting “Go Green” like and lack of parking activity. spaces. 32 f. Market share - The market share is estimated as a percentage of the market size. Table 4: Market Share Name and Before entering the market After entering the market address of (month) competitors (month) % RM % RM Press To 40 124,000 35 108,500 Aqua Nano 35 108,500 29 89,900 T2 25 77,500 20 62,000 CAD Laundry - - 16 49,600 Total 100% 310,000 100% 310,000 33 BEFORE ENTRY OF CAD LAUNDRY T2 24% press to 42% aqua nano 34% AFTER ENTRY OF CAD LAUNDRY CAD 16% press to 35% T2 20% aqua nano 29% After our company enters the market, it will affect other company about 16%. (16% x RM310,000=RM49,600/month). The benchmark is about RM25500 to RM18600. 34 g. Sales forecast Table 5: Sales forecast Year Month Sales forecast (RM) 1 1 41,300 2 46,600 3 51,100 4 49,600 5 46,200 6 48,900 7 51,300 8 56,900 9 55,000 10 54,100 11 46,100 12 48,100 Total (RM) 595,200 2 Total (RM) 624960 3 Total (RM) 656,208 35 h. Marketing strategy i) Product strategy: Our business provides a good service of laundries. We will fully utilize our machines to ensure that our customers get high satisfaction from our service. In this business, our laundries will be processed through types of cloth, how to processed the cloth and lastly, distribute the cloth. Our business provides a clean environment of laundry, which is very important for our customers’ view to our quality product. A good process of laundry also comes from the good quality of care. The pack ii) Price strategy: The price of laundry service is based on the total cost of each laundry service plus a standard mark-up. Therefore, in order to put a price for our services, we are using cost-based pricing concept and the profit margin is made regarding quality and service of the laundries. iii) Distribution strategy: We have chosen Bukit Beruang, Melaka as our project site based on some factors which is laundry shop is near to town, living quarters, students’ colleges and housing area. Seems that our location is in Bukit Beruang, it will encourage the customer to make a deal with us. 36 iv) Promotion strategy An impressive promotion is needed to ensure that our missions are achieved. A step of promotion should be taken in order to achieve our vision to make everyone know our existence in laundry services. Promotions are based on: • Signboard, Flyers It is very important for each business to have a signboard to introduce the business and let everyone know the shop is providing laundry service. Moreover, we have our flyers separated to each houses nearby. Figure 3: Signboard Figure 4: Flyer 37 • Membership card Our membership card will be given to each customer who visits our shop and wants to have discounts on our laundry services by paying the fee of membership card for a year. This will make people have their own priorities through the membership card itself. Figure 5: Membership Card 38 i. Schedule of marketing budget Table 9: MARKETING BUDGET Items Fixed Assets Monthly Expenses Other Expenses Expenses (RM) (RM) (RM) Promotion - Signboard 2500 - Flyers 200 - Discounts 840 - Membership Card 1000 Marketing Personnel - Salary 3000 - Commission 2297 - EPF/SOCSO 445.50 Other Expenses - Grand opening 5000 Total RM2500.00 RM5742.50 RM7040.00 GRAND TOTAL(RM) RM15,282.50 OPERATION PLAN 39 A. Process Flow Chart Process Planning 1. Deal with Customers Deal with customer. Provide them with baskets to put their clothes and weight their clothes. Open the bill book ( asking for names, address, phone number, date and time [ received and given ] on the bill book ). Give one copy of the bill to the customer and one for the Laundry’s copy. Then proceed to the next process. 2. Service Provided i. Dry Cleaning 40 Customers send their clothes at the counter Check the customer clothes ( any sign of damages and type of fabric ) and weight it Tagging the clothes Put the clothes in the washing machine ( choose any programme ) Transfer to dryer machine ( 75% dry , 25% wet ) Inspection Packing Hang on stand rod ii. Steam Pressing / Ironing Customer send clothes 41 Count the amounts of clothes Check each of the customers clothes ( any sign of damages and type of fabric )and weight it Ironing Packaging Hang on conveyer iii. Wash, Dry And Fold / Iron Customer send clothes 42 Check the customer clothes ( any sign of damages and type of fabric ) Put all the clothes into the basket Weight the customers clothes Put all clothes in the washing machine for washing Use the dry machine ( 75% dry , 25% wet ) Folding the customers clothes Ironing the customers clothes Packing Tagging the clothes Put in the wardrobe Hang on stand rod iv. Delivery Look at the bills, which customers need delivery ( Marked the bill and the date and time to deliver ) 43 Gather all the customers clothes and put it in the Delivery Transport. Check all the clothes that need to be deliver Transport the clothes based on the time the customer wants the clothes and the address of the customers house Delay by the traffic condition Ask the customer to sign the receive bill and service bill. Process Of The Service 44 I. Dry Cleaning Receive clothes from the customer. Open the bill book and give the copy bill. ( name, phone number, date and time ) Check the clothes if there is any leftover things or damage on the clothes Tag the clothes with tagging paper Put the clothes in provided basket Then, put all the clothes from machine. Choose dry cleaning programme. After 10 minutes, take out clothes from machines and take them to the drying machine. Then set the timer at the drying machines for 10 minutes. Take out from the dry machine and do inspection, then iron the clothes. During ironing, the condition of the clothes must be 75% dry and 25% wet. Packaging the clothes in the plastics using the packaging machine and hang it on the conveyer. Record the customer name in the computer system. II. Wash, Dry And Fold / Ironing 45 Receive clothes from the customer. Open the bill book and give the copy bill. ( name, phone number, date and time. ). Weight the customer’s clothes. Then, put all the clothes in the basket. Put all the clothes in the machine and choose the program for wash ( the time is around 45 minutes ). After that, put in the dryer machine. Next, take out the clothes from the dryer machine and the clothes are ready to be fold or iron. Finish folding the clothes, packing them with plastic manually. For clothes that are ironed, pack them with plastic and hang them at the conveyer. III. Steam Pressing / Ironing 46 Receive clothes from the customer. Open the bill book and give the copy bill. ( name, phone number, date and time. ). Count the amount clothes sends by customer. Take the clothes to the iron area and iron the clothes. After that, pack the clothes using the plastic at packaging machine. Place them on the conveyer and record it in the system. IV. Delivery 47 Receive clothes from the customer. Open the bill book and give the copy bill. ( name, phone number, date and time. ). Marked the bill if the customer wants a delivery service, ask them for advance information ( address , date and time they want to deliver ) Gather all the customers clothes and put it in the delivery transportation. Transport the clothes based on the address given by the specific time and date. Found the destination ask the customer to sign the receive delivery bill and pay the service bill . B. Business And Operation Hours BUISNESS AND OPERATION HOURS OPERATION HOURS 8.00 A.M. – 7.00 P.M. BUISNESS HOURS 9.00 A.M. – 6.00 P.M. Open every day except PUBLIC HOLIDAY. C. Production Schedule SERVICES DAY WEEK MONTH DRY CLEAN 1 Day = 30 pieces 1 week = 210 pieces 1 month= 840 pieces 48 20 =normal cloth 140 =normal cloth 560 =normal cloth 10 = special case 70 = special case 280 = special case Normal= Normal= Normal= 20 x RM 10= RM200 140 x RM 10= RM1400 560 x RM 10= RM5600 Special Case = Special Case = Special Case = 10 x RM 13 = RM130 70 x RM 13 = RM910 280 x RM 13 = RM 3640 TOTAL= 200 +130 TOTAL= 1400 +910 TOTAL= 5600 + 3640 = RM330 = RM2310 = RM9240 IRON 1 Day = 20 pieces 7 Day = 140 pieces 1 month = 600 pieces 15 =normal cloth 105 =normal cloth 420 =normal cloth 5 = special case 35 = special case 140 = special case Normal= Normal= Normal= 15 x RM 3= RM45 105 x RM 3=RM 315 420 x RM 3=RM 1260 Special Case = Special Case = Special Case = 5 x RM 5 = RM15 35 x RM 5 = RM175 140 x RM 5 = RM 700 TOTAL= 45 +15 TOTAL= TOTAL= = RM70 315 +175 1260 + 700 = RM490 = RM1960 NORMAL Machine 20 kg = 3 times Machine 20 kg = 21 times Machine 20 kg = 84 times per WASH per day per week month Machine 11 kg = 7 times Machine 11 kg = 49 times Machine 11 kg = 196 times per day per week per month 1kg = RM6 1kg = RM6 1kg = RM6 Total= (20x3)+(11x7) Total= (20x21)+(11x49) Total= (20x84)+(11x196) = 137 kg per day = 959 kg per day = 3836 kg per month Total= Total= Total= (137 kg x RM6) (959 kg x RM6) (3836 kg x RM6) = RM 822 = RM 5754 = RM 23,016 HAND 1 hours = 15 pieces 1 day = 120 pieces 1 week = 960 pieces WASH 1 day = 15 x 8 1 week = 120 x 7 1 month = 960 x 4 49 = 120 pieces/day = 840 pieces/week = 960 pieces/week Normal = 80 pieces Normal = 560 pieces Normal = 2240 pieces Special = 40 pieces Special = 280 pieces Special = 1120 pieces Total = Total = Total = (80 x RM 3)+(40 x RM5) (560 x RM 3)+(280 x RM5) (2240 x RM 3)+(1120 x RM5) = RM 440 = RM 3080 = RM 12320 Delivery 1 day = 12 times 1 week = 84 times 1 month = 336 times TOTAL= TOTAL= TOTAL= 12 times x RM10 84 times x RM10 336 times x RM10 =RM120 =RM840 =RM3360 GRAND TOTAL PER MONTH RM 49,896.00 D. Material Requirement TYPE OF QUANTITY PRICE(COST TOTAL (RM) SUPPLIERS MATERIAL/STOCK (AVERAGE PRICE) RM PER MONTH) HANGER 500 0.30 150 AH SENG ENTERPRISE DETERGENT 48 38 1,828 AH SENG LIQUID BOTTLES( 10 ENTERPRISE LITRES EACH) DETERGENT 96 PACKAGE RM23.50 2,256 AH SENG POWDER (4KG EACH) ENTERPRISE BRUSH 2 1 2 PACKING 900 PIECE 0.20 180 PLASTIC TAGGING PAPER 4 BOX ( 1 BOX 10 40 CONTAIN 200 PIECES) GAS 20 25 500 RESIT PAPER 4 BOOKS ( 1 10 40 BOOK/200 PAGES) CAR PETROL 2,000 LITRE 2.10 4,200 PETRONAS TOTAL(RM) 9,196 E. FORECAST PURCHASE PURCHASE PROJECTION RM 50 JANUARY 2017 15,819 FEBRUARY 2017 14,600 MARCH 2017 14,178 APRIL 2017 14,780 MAY 2017 14,780 JUNE 2017 14,780 JULY 2017 14,780 AUGUST 2017 14,600 SEPTEMBER 2017 14,600 OCTOBER 2017 15,819 NOVEMBER 2017 15,819 DECEMBER 2017 15,819 TOTAL FOR 2017 180,374 TOTAL FOR 2018 220,000 TOTAL FOR 2019 260,000 F. MANPOWER REQUIREMENT Position No. Job Status Remuneration per EPF SOCSO Total 51 month(RM) (13%) (1.85%) (RM) Manager 1 Full-Time RM 1000 RM 130 RM 18.50 1148.50 Washer 1 Full-Time RM 1000 RM 130 RM 18.50 1148.50 Washer 1 Part-Time RM900 RM117 RM16.65 1033.65 Cashier 1 Full-Time RM1000 RM 130 RM18.50 1148.50 Driver 1 Full-Time RM1000 RM 130 RM18.50 1148.50 GRAND TOTAL(RM) 5627.65 Table 7: Schedule of tasks and responsibilities Position Main task/responsibilities Find other strategies to help increase sales. Make sure the customer receive good service. Marketing manager Able to interact and try to make the customers to have confidence in our business To analyze the opportunity in the economy, choose and grab the opportunity based on the business Do all the laundries including hand Washer wash and normal wash, dry cleaning with ironing services. Receives orders and get the laundry done Cashier Takes orders that customer leave at the counter Driver Delivering product G. Machine And Equipment Planning 52 ITEM PRICE PER UNIT TOTAL COST SUPPLIER UNIT (RM) REQUIRED (RM) WEIGHT 450 1 450 MACHINE DRY CLEANING 1 19,200 ELECTROLUX MACHINE(13KG) 7,000 DRY CLEANING 12,200 1 MACHINE(20KG) IRON SET 2,000 2 4,000 PANASONIC COUNTER 1,500 1 1,500 IKEA TABLE WARDROBE 450 3 1,350 IKEA BASKET 8 6 48 IKEA TAGGING GUN 25 1 25 HARDWARE VAN 8000 1 8000 NISSAN WASHING 21,700 ELECTROLUX MACHINE(20KG) 11,300 1 WASHING MACHINE 5,200 2 (11KG) TOTAL(RM) 56273 H. Operation Layout 53 H. Operation Overheads Over Heads Total Per Month(RM) Electricity 3500 Water 3000 Telephone 120 Grand Total 6620 I. License, Permit and Regulation 1. Register from SSM 54 To start our business, first of all we registered our company at Syarikat Suruhanjaya Malaysia (SSM). For our business, we register our company at SSM Melaka. To register our company, we need several procedures which is : a. Complete Form A ( Register a new business ) to fill in detail the following information Name of business Type of business Date of commencement Address and place of business Branch of business Owner information To attach sharing partnership agreement (if any) b. All business owners must sign Form A c. We need to bring this following document : Copy of identity card (IC) Copy of Partnership agreement (if any) Permit, license, letter of permission or letter of support from other agencies (if any) d. For our company, we need to pay RM60 to register the company because the type of our company is partnership. e. These procedures only take one hour in SSM Melaka. 2. Permits for premise We get the permit from Majlis Bandaraya Melaka Bersejarah (MBMB) . Price for open laundry is RM 200. J. OPERATION BUDGET ITEMS FIXED ASSETS MONTHLY OTHER TOTAL EXPENSES(RM) EXPENSES(RM) EXPENSES(RM) (RM) MACHINE AND 90,073 90,073 EQUIPMENT MATERIAL 9,196 9,196 55 COST INSURANCE 1500 1500 AND ROAD TAX MAINTENANCE 3,000 3,000 Overheads 6620 6620 Salary 5627.65 5627.65 GRAND TOTAL(RM) 116,016.65 K. IMPLEMENTATION SCHEDULE ACTIVITIES DEADLINES DURATIONS Incorporation of business Jan – Mac 2017 3 months Application for permits and Jan – April 2017 4 months license Searching for business Feb – Mac 2017 3 months premise Procurement of machines April – June 2017 3 months and raw material Recruitment of labours June 2017 1 month Installation of machines June 2017 1 month Renovation premise April 2017 1 month FINANCIAL PLAN 56 57 58 CONCLUSION As conclusion, the business plan is a document which gives a guide and purpose to the business project. The main purpose of the preparing business plan is to allow the entrepreneur to view and calculate the proposed venture in an objective, critical and practical manner. With a business plan, the entrepreneur has solid and well-grounded information to supplement the planning and decision making process. The business plan can also be used as a guide for managing the proposed venture. In addition, a business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals. Business plans may also target changes in perception and branding by the customer, client, taxpayer, or larger community. When managing a business, a business plan is often confused with the term marketing plan. Lastly, the purpose of this business plan is to represent the plan of our business, CAD Laundry . This business plan covers four aspects, which are marketing, administration, operational and financial. This plan is important to ensure that our business runs smoothly and effectively in maximizing profit. By having all these data, it can give a clear picture to the entrepreneur of the amount of money needed to start a business. In addition, it can also show the sources of finance, the amount of cash available and the performance of the purposed business. 59