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GROUP MEMBERS
Muhammad Fuad bin Kassim
Muhammad Amir Shazwan bin Shahuddin
Nur Shazleen Aini binti Mamat
Noraliana binti Ibrahim
Nor Suhada binti Muhammad
1
EXECUTIVE SUMMARY
Fassa Flour is a company name and our main product is cupcake cookies in the UTHM kiosk of Parit Raja and shop at shopping complex. We can loosely be described as a quickservice restaurant where customers sit around a bar and wait their cupcake cookies being made. The show, as well as the cupcake cookies, is our main selling point. Fassa Flour will hold true to its vision of being a new concept with an old fashioned feel in order to become a favorite spot for parit raja natives. As a reported national leader in money spends in restaurants, Parit raja is an optimal location for launching a new shop concept. Fassa Flour also hopes to become a destination for the thousands of customer and tourists, who visit UTHM or Parit Raja every year. We plan to manipulate our location in the UTHM shop to our outmost advantage. As the UTHM fills up with new businesses over the next few years Fassa Flour will receive an added boost of increased traffic. Therefore, we are aggressively planning for a 30% increase in sales the second year of business.
Objectives 1. Attain average sales transaction of RM 5.00 per customer within the of in the first year 2. Expand to more stores by the five year of business.
Mission Fassa Flour is a hospitality company dedicated to providing high-quality cupcake cookies in a comfortable atmosphere for clients who seeks a fun “gourmet” experience outside shops. We intend to make enough profit to generate a fair return to our investors and to finance continued growth and development in quality products. We also maintain a friendly, fair, and creative work environment, which respects diversity, new ideas, and hard work.
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Keys to Success
Dedication to the finest quality ingredients and ‘make it happen no matter what’ customer
service. On-going employee education and recognition programs. Give back to the community
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INTRODUCTION Firstly, we have discussed for our committee members selection about who are the Chairperson, Chief Executive Officer (CEO), Chief Financial Officer (CFO), Secretary and Project Manager. Finally, we make a decision as follow as a chairman, Muhammad Fuad bin Kassim, Chief Executive Officer is Muhammad Amir Shazwan bin Shahuddin, Chief Financial Officer is Nur Shazleen Aini binti Mamat, Secretary is Nor Suhada binti Muhammad and lastly Project manager is Noraliana binti Ibrahim. We decided to choose Fuad as our chairman because we think that he can control all members under his instruction. There are suggestions from group members about the business plan. Muhammad Fuad suggested a Solar Charger as our business. Muhammad Amir Shazwan a delivery service. Nur Shazleen a flowers shop. Nor Suhada want made multi drink maker machine and we have chosen suggestion from our project manager, Noraliana Ibrahim that is cakes and cookies but we exchange it to become cupcakes cookies. Every person in our group given a different name and suggest different idea for our company’s name. After discuss about it, we decide to name our company as FASSA COOKIES. We name as FASSA because the name stand for our group members. The letter of F stand for Fuad, A stand for Amir, S stand for Shazleen, S stand for Suhada and last A stand for Alia. Other than that, the word COOKIES refer to product that our company will be selling. Our company will be act as like cafe. Nowadays, people like to eat a new product that can attract them to get it. Hence, we plan to upgrade the cupcakes in various type and flavour. The flavour that we offer which are differ from other company, example fruity cookies yogurt cookies and colourful cookies. To get more attractive cookies, we want to make or designed the rainbow cookies. Customer also can buy cake if they want because our company also provided that. The customer can take - away the cookies or eat at that place. Our company also provided delivering service for our customer that want send to their family or friends. Furthermore, the customer at overseas also can give a call or e-mail us if they want our company send the cupcakes cookies. Our customer can get more information about our company service by liking our page in Facebook or they can reach us in blog. Besides that, we use “love at first bite” as our motto’s company.
FASSA FLOUR MISSION STATEMENT 4
Vision: To bring amount an innovative business model that is sustainable, passionate, aims for perfection. Mission: To inspire and nurture the human spirit, one person, one cookie at a time. Our Cakes and Cookies It has always been about quality. We are passionate in sourcing for the perfect recipe in cake and cookies, baking them with a heart full of passion and great care and strife them towards perfection. Our Customers It is our main priority in engaging, connecting and uplift the lives of our customers, even if just for a few brief moment. It not just about cakes and cookies, it’s the connection between us, a human connection and its start with a hot beverage and dough of perfection. Our Stores When it comes to a sense of belonging, our stores became a haven. A place to spend and meet with loves ones, a place to break from the heavy world outside. Enjoying every moment of life slowly and savored. It’s all about humanity that counts. Our Partners We’re called partners, because it’s not just a job, it’s our passion. Together, we embrace diversity to create a place where each of us can be ourselves. We always treat each other with respect and dignity. And we hold each other to that standard. Our Ethics Passionate, humility and respectful. We have a passion for brilliant cakes and cookies, and this is reflected in our knowledge and advancement of gourmet pastry creation. We acknowledge own mistakes and commit to learning and honor the dignity, inclusion, and diversity of others.
BUSINESS ENVIRONMENT
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Market Research Market research includes secondary and primary research on available information for single-location fresh cookies cupcake in Johor Darul Takzim. Secondary Research Information Secondary research methods were used to find business information about target customers, product and sources of supply and analyze the competitor. Supply Sources. There are many available the supply sources for the bakery, cookies, cupcake or utensil that are mostly ordered from Harvest Bakery Ingredients Sdn.Bhd with located at Lot 23,Jalan U5/15,Section U5,40150 Shah Alam, Selangor. Second, Pastry Pro Sdn.Bhd located 10, Jalan 3/37A Taman Bukit Maluri, Kepong, 52100, Kuala Lumpur, Malaysia (
[email protected]) and more. Industry Information Sources. This industry poses challenges in that some cookies cupcake stores have categorized themselves as bakeries or snack bars rather than as cookies cupcake manufacturers. Additionally, these are small private companies; therefore there is not a lot of information available about their finances or production. Informal yet valuable sources of information included the KAK NOR COOKIES, IL LECCA LECCA and CUPPACAKE B’LICIOUS and official information sources included the City of Malaysia Business License database and each company’s own website.
Management Plan 6
Qualification
Position
Qualification At least have a Bachelor’s degree in management field.
Chief Executive Officer
Have great deal of business experience.
Are intrigued by business which made.
Having a Bachelors or Masters of Degree.
Project Manager
Minimum 3 years have experience of managing.
Areas of study may include Retail Management,
Marketing,
Sales
Management, Business Administration, and Strategic Management.
Secretary
Have degree certification in secretary
field. At least 2 years have work experience. Knowledge of the English language. Knowledge of shorthand. Basic office skills Communication skills Computer literacy Decision-making skills At least have working experience 2
years. Have a bachelor's or master's degree in business
Marketing Officer
administration
with
a
concentration in marketing. At least 2 years have work experience. Have finance qualifications such as a degree or come from an accounting
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Chief Financial Officer
background. Have PhD certification in cooking field. At least 2 years have work experience.
At least have SPM certification. Have driving qualifications. Good at working with others.
Pantry Chef
Delivery Worker
The qualification of the owner or entrepreneur is important to the success of the business. Detailed information on the entrepreneur is covered in the resume including his education, work experience, management experience and entrepreneurial traits. For our business, we showed qualification that we need for position in our company’s organization chart which is Chief Executive Officer, Project Manager, Secretary, and Finance Officer. We also include the qualification for Pantry chef and Delivery worker position. This is crucial as it will assist the banker or investor to determine whether our company has the knowledge and training the business.
Job Description and Responsibilities Position
Chief Executive Officer
Number of Staff 1
Main Task
Planning business activity. Responsible on corporate
finance. Planning business strategy.
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Project Manager
1
Handling sales matters. Recruiting staff. Keeping the store in line with
Health and Safety regulations. Managing the shops security
policies. Proposing and implementing
promotions and specials. Developing marketing
strategies. Ensuring meetings are effectively organised and
Secretary
Marketing Officer
Chief Financial
1
minute. Maintaining effective records
and administration. Planning marketing
activity annual. Develop marketing activity.
Planning financial activity. Planning
company expenditure. Produce financial reporting. Store food in designated
1
1
Officer
containers and storage areas to Pantry chef
3
prevent spoilage. Inform supervisors when equipment is not working properly and when food and supplies are getting low, and order needed items.
Deliver food products. 9
Plan the shortest delivery route Delivery worker
and drive the vehicle to the 2
destination. Handle cash and give correct
change to customers. Provide customer service and advice.
A detailed job description is needed to determine what is expected from each person. It gives an accurate description of the tasks to be performed and the responsibilities of the individual. We decide to choose one Chief Executive Officer, one Project Manager, one Secretary, one Marketing Officer, one Chief Financial Officer, three Pantry chefs and two delivery workers to manage our company as in Table above about Task and Responsibilities.
Wages or Salaries and Benefits to Employees POSITION
NO
Chief Executive Officer Project Manager Secretary Marketing Officer Finance Officer Pantry chef Delivery workers Part time worker
EPF (13%) (RM) 650
SOCSO (2%) (RM)
AMOUNT (RM)
1
MONTHLY SALARY (RM) 5,000
100
5,750
1
3,000
390
60
3,450
1 1 1 3 2 1
900 1,800 1,500 7,500 1,600 600
117 234 195 975 208 78
18 36 30 150 32 12
1,035 2,070 1,725 8,625 1840 690
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Total
25,185
The table above shows wages or salaries and benefits to employees. In addition to these benefits, it consist various provident funds such as Social Security Organisation (SOCSO) and Employees Provident Fund (EPF). The Social Security Organization (SOCSO) provides social security protection by social insurance including medical and cash benefits, provision of artificial aids and rehabilitation to employees to reduce the sufferings and to provide financial guarantees and protection to the family. SOCSO is commonly known in the Malay term as PERKESO or Pertubuhan Keselamatan Sosial. Employees Provident Fund (EPF) is a compulsory savings scheme in Malaysia. Its primary aim is to provide a measure of security for old age retirement to its members. It also provides supplementary benefits to members to utilize part of their savings for house ownership and other withdrawal schemes. EPF is commonly known in the Malay term as KWSP or Kumpulan Wang Simpanan Pekerja. After calculate all salaries, we get RM 25,185 for total salaries for all position in our company. Office furniture, equipment and others Item
Shop furniture Shop equipment
Other utensils
Type
Quantity
Price/unit (RM)
Total cost (RM)
Shelf Kitchen desk Cashier desk Refrigerator Bakery oven Mixer machine -
3 3 2 4 5 5 -
500 800 700 5000 1500 900 500
1500 2400 1400 20,000 7500 4500 500
Delivery service equipment
Mini lorry Types of box
1 A lot
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140000 200
200
Signs Tenant
-
-
-
-
8600 2000
Improvements Business Computer Personal computer
2000
1500
1500
Memory storage
1 -
200
200
-
-
1100
1100
Office supplies
-
-
600
600
License
-
-
3140
3140
Equipment
Restaurant supplies
TOTAL
195,140
In order to facilitate management planning and budget, our company list shop furniture, shop computer, shop equipment and other utensil as our office furniture, equipment and others. So, the total cost is RM 195,140.
Management Budget
Item
Total (RM)
Furniture and fitting
195,140
Salaries
25,185
Rental deposit
2,000
Utilities deposit
1,000
Grand total
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223,325
The grand total for furniture and fitting, salaries, rental deposit and utilities deposit is RM 223,325. So, the total cost is still does not exceed money that we borrow from bank.
MARKETING PLAN Competitive Intelligence Product sales information is private, and these are all privately owned small companies. According to KAK NOR COOKIES, IL LECCA LECCA and CUPPACAKE B’LICIOUS. Each company has the following price, place, strength and weakness, opportunities and threats characteristics:
KAK NOR COOKIES
IL LECCA LECCA
CUPPACAKE B’LICIOUS
Not detailed
RM 0.40
Not detailed
PRICE One cookie?
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Deals?
Unknown
Unknown
Unknown
Bank in?
Unknown
Yes (at least RM 150)
Unknown
Reviews?
Good Deal
Good deal
Affordable
Details of Price for IL LECCA LECCA
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Basic: 1-2 colours Detailed: 3-6 colours Elaborate: 7 colours and above Table 1. Competitive Intelligence about Price
KAK NOR COOKIES
IL LECCA LECCA
CUPPACAKE B’LICIOUS
Location?
Bandar Tun Hussein Onn,Cheras,Kua la Lumpur.
Klang,Selangor
Batu Pahat,Johor
Store?
Yes
Yes
Not yet
Signage?
Good
Not stated
Good
Parking?
Unknown
Unknown
Unknown
Décor?
No frills
Average
N/A
Indoor seating?
No
No
Yes
No
No
Yes
PLACE
Outdoor seating?
15
Hours?
Unknown
Unknown
10 am-11 pm
Music?
Unknown
Unknown
Yes
Cleanliness?
Ok
Ok
Ok
Restrooms?
No
Outside
Outside
Pan Handlers?
Unknown
Unknown
Unknown
Microwaves?
Unknown
Unknown
Unknown
Air conditioning?
Unknown
Unknown
Yes
Table 2: Competitive Intelligence about Place
Strengths and Weaknesses.
Strengths of the competitors are that they are well established and well known. They have each generated a unique following and have differentiated themselves in the marketplace. Yet each business has its unique challenges as well, and that leaves room for opportunity.
KAK NOR COOKIES Located in the walking-friendly area Bandar Tun Hussein Onn, Cheras, Kuala Lumpur. KAK NOR COOKIES has a simple storefront with a big, eye-catching neon sign. They have a huge and loyal following. One unique strength is always make the promotion and held the class for
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maing cake and cookies. AK NOR COOKIES also had launch the event “Kelas Rahsia Jutawan Online “ to help the women to increase their income.Next,provide the job of distributor person. Their weaknesses include that their one-cookie price is perceived as too high, their no-frills decor, lack of outdoor seating and do not specified their sales. Website: http://kaknorcookies-mufin.blogspot.com IL LECCA LECCA With a perfectly sized located at Klang,Selangor, the IL LECCA LECCA could not ask for a better location because did not state the correct address.A business registered with the Suruhanjaya Syarikat Malaysia (SSM). The business also give free gift when they having the promotion time. This business also provide the delivery service with the charge is depend on distance.Weaknesses include that the location of IL LECCA LECCA not state in correct address,with not detailed listed. Their one-cookie price is perceived as too high, and there are grumbles that the cookies could be larger for the price. Website: http://illeccalecca.blogsport.com
CUPPACAKE B’LICIOUS Overcoming the challenge of selling at Batu Pahat, Johor, and the CUPPACAKE B’LICIOUS has generated their business using the internet example through the Facebook. They also offered many types of cake .Besides, the location also in a strategic place with provide the map for customer to search it. Their weakness is not stated either the parking space is available or not. Website: https://www.facebook.com/pages/Cuppacake-BLicious/114193641479
Opportunities
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There are quite a few opportunities here for a great business. First, the market is not over-saturated with competition. It an effort to identify competitors in the JOHOR area, we came up with only six unique local cookies cupcake specialty types, and two cookies cupcake locations. For a city with over 2 million residents, seven cookie stores spread out over the entire county does not seem to be an overwhelming amount of competition. And of the cookie stores that we have discovered, most have been in business for over 10 years each, showing that they are very stable. Customers want a product that is warm, fresh, moist, soft, flavorful, and attractive, and they are willing to pay for quality. They want a clean facility, easy parking, air conditioning, restrooms, indoor and outdoor seating options, and a pleasant atmosphere with no microwaves and no pan handlers. They are looking for quality and value. They will pay up to RM 2 per cookies cupcake with few grumbles for gourmet quality with excellent visual appeal. The other popular deal was day-old cookies cupcake at a price of RM 5 for 6 type of cookies cupcake.
Threats The biggest threat is that the location would not prove to be profitable. There are enormous benefits to having a fixed location, but the drawback is that if surrounding demographics are not suitable it can kill a business before they even get off the ground. Other threats include that new competitors can enter the market, that knock-offs could be developed, or that economic conditions become worse than they currently are which would leave people with little or no disposable income for small luxuries like cookies cupcake.
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The marketing plan includes the company name, logo, motto, values, objectives, marketing mix, branding, and advertising strategy. Company Name Our company name as FASSA COOKIES. We name as FASSA because stand for our members nickname. The letter of F stand for Fuad, A stand for Amir, S stand for Shazleen, S stand for Suhada and last A stand for Alia. Other than that, the word COOKIES refer to main product that our company will be selling. Company Logo This is our company logo
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Company Motto We decided to name our company motto is “Love at First Bite”. It means that falling in love at first impression when the people eat the cookies. Mission Statement To make unique, creative, high quality cookies and provide them locally at a fair price.We also want to promote our cookies cupcake in all country. Values
Community
Quality Ingredients
Fair Prices
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Objectives 1. Achieve an average sales transaction of RM 5.00 per customer within the first year. 2. Increase profit by 5% in the second year of business. 3. To promote our company name to all country.
The Target Customer The target customer for this business is a person who totally loves cookies cupcake. The cookie cupcake lover is a niche market, as demonstrated in the comments of the primary research survey. Cookie cupcake lovers, like our members, tend to take it for granted that everyone else loves cookies cupcake as much as they do. While enthusiasm is important for any business, we cannot allow it to blind me to the cold fact that not everyone is in love with cookies. More importantly, among cookie cupcake lovers, we are seeking those who are not the health nuts looking for ‘alternative’ cookies cupcake. Our vision is for good old fashioned high calorie splurge type cookies cupcake. From this, we take the opportunity with offered the yogurt, fruity of cookies cupcake. Locating these cookie cupcake lovers is no simple task, as it is more of a psychographic characteristic than any sort of easily identifiable demographic.
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The Marketing Mix Competitive intelligence reveals that the ideal company would have the following characteristics for product, price, place, and promotion:
-Main product is cookies cupcake 1) Variety of cookies, for example Oreo, chocolate, coffee and 1) PRODUCT
2) PRICE
3) PROMOTION
others. 2) Fruity cookies cupcake 3) Yogurt cookies cupcake 4) Rainbow or colourful cookies cupcake -Very reasonable and affordable price -For all type of cookies of cupcake same price:each RM 1.00 -For 1 box of cookies cupcake that contain all flavours which are consist 6,the price is RM 5.00 -First week of sales provide 30% discount -Offer free delivery service for the first week of our sales 22
4) BUSINESS LOCATION
- Can give a call or e-mail to order the cookies cupcake -Provide the membership cards -Firstly, for the first sales, we prefer to open at the supermarket. 1)At the supermarket -very strategic place -all people can taste it. -can promote our product -We also get the opportunity to sell the product in UTHM 2)At the UTHM -everyone at the UTHM can get the product
Product Cookie cupcake lovers want a moist, fresh cookie with ample ingredients. They prefer a 5” diameter or larger size with firm edges and a soft chewy thick warm center, but not undercooked. Scent and appearance should both be attractive, and they want a nice variety of choices for flavor. Creativity is important, plus a variety of cookies cupcake and the ability to place custom orders. Most want real butter in their cookies cupcake, while some want a healthy alternative too. Price Customers want a good deal. They are willing to pay RM1.00 per all cookie cupcake, but not much more than that . Credit cards may be more trouble than they are worth one mistake with those and customers were extremely unhappy and vocal about it. For 1 box of cookies cupcake that contain all flavors which are consist 6 and the price is RM 5.00.For the delivery service, the charge is RM 1.00 for 1 km and soon on. Place The location should be accessible to those who walk around such as at the UTHM. Student like the unique design of cookies cupcake and all people can taste it and this can make us to promote our product .They should be comfortable, and hours of operation should be approximately 10 am – 10 pm every day. 23
Initial primary market research revealed that a supermarket is one of the stronger possibilities for a shop location, rather than a neighborhood location which was being considered before primary market research was completed. Further primary market research will need to be conducted regarding the ideal location for the business.
Location will be to generate the
appropriate volume of business. Shopping mall patrons will need to be surveyed, and further studies should be done at the neighborhood strip mall locations as a comparative before the location is determined.
Promotion Be sure to have a good supply of product on hand, and give out samples so they can try before they buy. Don’t make people wait in line, be sure to help them promptly. Let them watch the process of products being made – it inspires trust. Delivery is a nice service, but it is optional. For the first week of sales provide 30% discount and offer free delivery service. The customers can give a call or e-mail to order the cookies cupcake and we provide the membership cards .Overall, good customer service is very important and customers value a company that donates their product to charity fundraisers and events. Promotion will use an integrated marketing approach that includes public relations, sales promotion, customer service, and suggestive selling techniques to help keep sales at target levels. Promotion will include a strong branding element, as described in the next section. Branding A PhD of pantry chef will be hired to create six choices of cookies cupcake, décor, and product display designs. They will use feedback that we have from our primary research indicating that six types of cookies cupcake like oreo,chocolate,coffee,fruity.yogurt and rainbow or colourful.That people associate with our concept of fresh, warm, and tasty cookies. We will do market research with those three choices and select the most popular of the three designs to be implemented.
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Advertising Our primary research indicates that the number one information source for us will be word of mouth, from our poster, closely followed by signage on location and information on the internet. Signage and internet branding will be designed by a secretary and tested with market research before being implemented. Word of mouth will require that we are good about getting the initial word out so people can tell others about our product. To encourage word of mouth we will provide free product samples to all people in the first week that we are open for business. Poster that we made can attract the attention of all people to come and enjoy with our cookies cupcake.
Customer Service and Suggestive Selling Customer service must be of the highest quality in a small business like this, and extensive care will be taken to select the right employees for the job of working with the public and representing the brand. Suggestive selling techniques will be used, and each customer should be offered the ‘one box of cookies cupcake that contain six flavor with the price only RM 5.00’ opportunity. In addition, free samples will be provided to help customers find their favorite flavors and not be disappointed in paying for something they may not like as much as another flavor. It also can give the customers to taste it before buy our product to make sure the flavor is appetizing. For the delivering service, we hired two of delivery workers with having the license of transport. From this, it can make sure that the product that ordered will send on the actual time. It can satisfy the customers.
Rate production (month) = Average sales month / Price of one unit = (RM 50 000/month) / (RM 1.00/unit) = 50 000 unit
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Rate production for one type cookies cupcake (month) = 50 000/6 types =8333 unit Rate production for one type cookies cupcake (month) =8333/30 days =277 unit
Estimates of monthly sales of FASSA FLOUR
Variety
Cookies cupcake of cookies,
Price ( RM ) for 1.00 × 30days × 833unit/day = RM25000
example Oreo, chocolate, and coffee Fruity cookies cupcake 1.00 × 30days × 277unit/day = RM8310 Yogurt cookies cupcake 1.00 × 30 × 277unit/day = RM8310 Rainbow or colourful cookies 1.00 × 30 × 277unit/day = RM8310 cupcake Total
RM 49930
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Estimates of yearly sales of FASSA FLOUR
Sales of cookies cupcake January February March April May Jun July August
Month RM 49,930 RM 50,000 RM 59,900 RM 68,000 RM 75,050 RM 85,500 RM 90,000 RM 95,900
September
RM 105,000
October November
RM 105,500 RM 106,000
December
RM 110,000
TOTAL
RM 1,000,780
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FINANCIAL PLAN Narrative Introduction The purpose of the plan is to illustrate the revenue and expense situation for starting this business and generating a profit. The financial plan includes financial objectives, revenue forecast, pro forma cash flow analysis, pro forma income analysis, pro forma balance sheet, and estimate of start-up expenses. Projections have been made with the unit sales method. Financial Objectives 1. Achieve an average sales transaction of RM 5.00 per customer within the first year. 2. Increase profit by 5% in the second year of business. Revenue Forecast CALCULATION: 1. FOR ONE YEAR RM 600, 00/RM 1.00=600,000 2. FOR ONE YEAR (BUY 5 GET 1 FREE) 600,000 + 111,111 =711,111 3. FOR DAILY AVERAGE 711,111/365 days =1948 4. FOR ONE HOUR 1948/12 hour =162 5. FOR ONE MINUTE 162/60 second =3
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Based on the secondary data information for FASSA FLOUR, we had at least RM 50,000 in sales in one month with a cookies cupcake price of RM1.00 each of cookies cupcake. This is most similar to the pricing and financial model that we wish to follow, so it is being used as a basis for financial projections. Since our most popular deal is buy 6 cookies cupcake in box get RM 5.00, our sales becoming increase. If sales in 12 months are RM 600,000 divide that by RM 1.00 and we get 600,000 cupcake cookies that were paid for. Since our most popular deal is buy 5 cookies cupcake get 1 free in price RM5.00, we will estimate that they produced 711,111 cookies cupcake to generate that much revenue. That is a daily average of 1,948 cookies cupcake sold in a year with 365 days. We are open from 10 am to 10 pm for 12 hours each day, so that is an hourly sale rate of about 162 cookies cupcake per hour. In order to reach this target, production will have to match that pace, with approximately 3 cookies per minute being produced and given out. FASSA FLOUR is well established and has been in business for at least 10 years. To be more reasonable in our projections, if we did 50% of their annual business volume in our first year it would be a great year. That’s RM 25,000 in sales in the first year as a new start-up with a rate of 1 cookies cupcake per minute being produced and given out, or about 5 dozen per hour. Our plan, however, calls for 9 hours per day of work time versus their 12 hours per day, which would mean either an increase in number of cookies cupcake per hour to achieve the revenue target of RM 25,000 in sales, or a decrease in target revenue for the first year. That would mean sales of 68 cookies cupcake per hour or 1.13 cookies cupcake per minute to stay on target with a first year sales revenue of RM 25,000 before taxes and other expenses. That would be approximately RM 76 per hour of incoming revenue during open business hours. If business is distributed evenly across all months.
Pro Forma Cash Flow Analysis
29
To calculate gross profit, we need to take the adoption curved revenue and then subtract the cost of goods sold. To find an accurate cost of goods sold, we need to know our cost per cookie and how many cookies were produced. It is important to remember we’re offering “buy 5 get 1 free” so for every 5 cookies cupcake paid for in revenue, one will be given away for free. MONTH CASH ADVANCE + FLOW IN CASH CASH SALES COLLECTION SALES CREDIT FUNDING: BANK LOAN TOTAL CASH FLOW IN CASH-FLOW OUT CASH PAYMENTS: RENTAL SITE PRINTING MATERIAL ultility WAGES AND SALARIES COST comunication OFFICE SUPPLY Advertisement TRANPORTATION FIXED ASSET PURCHASE HIRE PURCHASE REFUND LOAN REPAYMENT TREE BENEFITS Contents at beginning
DECEMBER 50,000
JANUARY 430,865
FEBRUARY 416,760
49,930
50,000
550,000
480,795
466,760
10,000 500 5000 25,185 400 600 8,600 5,000 54,600
10,000 1000 5000 25,185 400 600 10,600 5,000 -
10,000 1200 7000 25,185 400 600 10,600 5,000 -
4,167 2,083
4,167 2,083
4,167 2,083
-
-
TOTAL CASH FLOW OUT
119,135
64,035
66,325
FINAL BALANCE OF CASH
430,865
416,760
400,435
500,000
3,000
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Using a list of ingredients for an average cookie recipe, and current figures from a leading national grocery chain, the cost per cookie was calculated at RM0.52 each. Note that this is a conservative estimate because we would actually be able to lower the cost per cookies cupcake by buying in bulk from wholesalers or club stores instead of retailer. Once the cost per cookie is known, we need to figure how many cookies are being made. If we have a revenue of RM 50,000 at RM 1.00 per cookie that means that 50,000 cookies were sold, but with our special there is one cookie given for free for every 5 cookies sold, so 50,000 is only 83% of the cookies that were actually made and distributed.Table show for ingredients of 35 cookies cupcake. Cost per Cookies Cupcake Calculation
Ingredients 0.35 Flour (kg) 0.70 Castor sugar (kg) 0.35 Butter (kg) 0.010 Baking powder (kg) 0.035 Flavour (litre) 0.70 Chocolate cookies (kg) 0.70 Coffee powder (kg) 0.70 Oreo cookies (kg) 6 Egg 350 Water (ml) 700 Fresh milk (ml) Assorted Fruit (slices) 700 Yogurt (ml) 35 Paper cup BATCH TOTAL
Price (RM) 1.20 0.70 3.50 0.50 0.50 2.00 1.50 1.20 2.00 0.80 2.00 1.00 1.20 0.02 18.12
Cost per cookies
0.52
cupcake
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LOAN AMOUNT CALCULATED : Loan Amount
RM 500,000
Interest Rate
5% Period Pay Back
Year
INTEREST
10 years LOAN
TOTAL
CURRENT
PAYMENT
BALANCE
BACK LOAN (RM) 0
500,000
1
25,000
50,000
75,000
450,000
2
22,500
50,000
72,500
400,000
3
20,000
50,000
70,000
350,000
4
17,500
50,000
67,500
300,000
5
15,000
50,000
65,000
250,000
6
12,500
50,000
62,500
200,000
7
10,000
50,000
60,000
150,000
8
7,500
50,000
57,500
100,000
9
5,000
50,000
55,000
50,000
10
2,500
50,000
52,500
-
32
FINANCIAL BUDGET Item
Shop furniture Shop equipment
Other utensils
Type
Quantity
Price/unit (RM)
Total cost (RM)
Shelf Kitchen desk Cashier desk Refrigerator Bakery oven Mixer machine -
3 3 2 4 5 5 -
500 800 700 5000 1500 900 500
1500 2400 1400 20,000 7500 4500 500
140000 200
140000 200
Delivery service equipment Signs Tenant
Mini lorry Types of box
1 A lot
-
-
-
-
8600 2000
Improvements Business Computer Personal computer
8600 2000
1500
1500
Memory storage
1 -
200
200
-
-
1100
1100
Office supplies
-
-
600
600
License
-
-
3140
3140
Equipment
Restaurant supplies
TOTAL
195,140
33
Furniture (RM 5,300) Secondary market research demonstrated that cookie cupcake need the shelf for three can be purchased as RM 1,500. Three kitchen desks would be needed, for a total of RM 2,400.Two of cashier desk in total RM 1,400.
Fixtures (RM 4,100) Fixtures that may be needed include ensuring that all plumbing and lighting are in good working order. Estimate RM 600 for these items. Five bakery cases with lighting and temperature control are also required at RM 700 each pre-owned.
Kitchen Equipment (RM 32,000) There are needed five bakery oven which total price is RM 7,500.For one bakery oven at RM 1,500. A commercial refrigerator for each one RM 5,000 and there are 4 of refrigerator that we are required in total price at RM 20,000. And five commercial quality stand mixers machine will also be required at RM 900 each. The total price for five mixer machines is RM 4,500.
Delivery Service Equipment (RM 140,200) For the equipment of delivery service, we need different size of box for the process of packaging. We estimated for the total is RM 200.Transport for the delivering service, we need the mini lorry with in cost RM 140,000.
34
Tenant Improvements (RM 2,000) Secondary market research demonstrated that cookie store patrons prefer an air conditioned environment. With a baking operation it is essential to ensure a comfortable climate indoors, so the air system must be in good working order for the comfort of patrons and employees. Ideally, we will not lease a location that requires any improvements to the air system, and therefore will save costs in this area, but realistically we will budget RM 2,000 for any unforeseen needs.
Signs (RM 8,600) Signage will be needed for the storefront and for any local directional signs, such as a mall marquee. Signage costs are RM 1,600 for a standard storefront sign lit with aluminum floodlights. A mall sign lit from within is RM 7,000.
Business Computer Equipment (RM 1,700) Our personal computer is in need at price RM 1,500, so that it can be used for the business. Internet service would need to be paid for also. Backup memory storage will be needed in case of equipment or software failure at RM 200.
We will avoid a computerized cash register for
simplicity and ambience.
Restaurant Supplies (RM 1,100) Inventory will need to be purchased for the ingredients at an estimate of RM 500 for starting inventory. Aprons, chef pants, logo jackets and prep towels will be required at RM 300 per kitchen worker also with 2 delivering workers and cleaner at the start of business. Paper towels, toilet paper, and cleaning supplies are needed as well, at an estimate of RM 300 for startup supplies.
Office Supplies (RM 600) 35
These include pens, paper and ink for the printer, stapler, scissors, scotch tape, and paperclips and other miscellaneous office supplies for a total of RM 200 at start up. An old-fashioned mechanical cash register will be obtained for RM 100, and we will need a small safe for cash and change storage at about RM 100.We offer the business card and the total cost for this about RM 200.
Kitchen Utensils (RM 500) These include spoons and scrapers as well as cookie spatulas and rolling pins at approximately and other utensil that related.
Licenses (RM 3140) To start a business in Malaysia, register it with the Companies Commission of Malaysia (CCM),which regulates all companies in the nation. A processing fee of RM 30, (approximately USD 9.05). The fee for the first copy of these documents is RM 100 each (USD 30.16) and the fee for the second copy is RM 10 each (approximately USD 3.02). The fee for the registration of business form accompanied with the name approval letter from CCM depends on the company's share capital and can thus range from RM 1,000 (approximately USD 301.57) to RM 70,000 (USD 21,209.91).So, to start up our business, we need to pay RM 3000 because the range of company’s share capital is about RM 100, 00 until RM 500,000.Details were obtained from the County of San Diego website and the “Guide to Opening a New Food Business in Malaysia”. Read more: How to Register a Business in Malaysia | eHow.com http://www.ehow.com/how_6618782_register-businessmalaysia.html#ixzz2SiwJ0fFf
OPERATIONAL PLAN
36
1.0
CAPACITY PLANNING
Our estimation for sell cookies cupcakes for one month is 50 000.
Rate production (month) = Average sales month / Price of one unit = (RM 50 000/month) / (RM 1.00/unit) = 50 000 unit Production rate for one month is 50 000 unit/month For one type of cookies cupcake in month 50 000/6 types=8333 6. FOR ONE YEAR RM 600,00/RM 1.00=600,000 7. FOR ONE YEAR (BUY 5 GET 1 FREE) 600,000 + 111,111 =711,111 8. FOR DAILY AVERAGE 711,111/365 days =1948 9. FOR ONE HOUR 1948/12 hour =162 10. FOR ONE MINUTE 162/60 second =3
Machine and equipment
37
4 of refrigerators
5 of mixer machines
5 of bakery oven
Utensil
2.0
HUMAN RESOURCES
38
Firstly,our shop at the shopping complex we need to have two chashier to handle the payment.then,we need three of experience pantry chef to make cookies cupcakes and also for the delivering service, we hired 2 workers to deliver the order.Lastly,one cleaner person is employed to make sure our shop is clean.At kiosk at the UTHM we just use indirect labor which is part-time student as our worker and we will pay them monthly salary.
Chief Executive Officer (1)
Chief Financial Officer
Project Manager
Marketing Officer (1)
(1)
(1)
Pantry Chef (3)
Secretary
Position (1) Chief Executive Officer Chief Financial Officer Secretary Marketing Officer Project Manager
Number of staff 1 1 1 1 1
Pantry Chef
3
Total
8
Roles and responsibilities.
39
Position
Main tasks
Chief Executive Officer
planning business activity responsible on corporate finance planning business strategy
Chief Financial Officer
planning financial activity planning company expenditure produce financial reporting Ensuring meetings are effectively
organised and minuted Maintaining effective records and
Marketing Officer
administration planning marketing activity annual develop marketing activity
Project Manager
for managing the project. for accomplishing the
objective responsible for the outcome(success
or failure) of the project. Store food in designated containers
Secretary
Pantry Chef
and
storage
areas
to
project
prevent
spoilage Inform supervisors when equipment is not working properly and when food and supplies are getting low, and order needed items
Administrative Budget. Item
Total (RM)
40
Furniture and fitting
195,140
Salaries
22,655
Rental deposit
2000
Utilities deposit
1000
Grand total
220795
3.0 RAW MATERIALS Our raw materials consist of oreo cookies,coffee and fruit such as apple, watermelon, guava, kiwi, strawberry, and others fruits that are suitable of making our products.we also have yogurt. The source of the raw material is located at Batu Pahat and we also have our own supplier with a low price that they offer.This can save some of our money and profit our company.
RAW MATERIALS
Ingredients
Ingredients per unit 41
Flour (kg)
0.01
Castor sugar (kg)
0.02
Butter (kg)
0.01
Baking powder (kg)
0.01
Flavour (litre)
0.01
Chocolate cookies (kg)
0.02
Coffee powder (kg)
0.03
Oreo cookies (kg)
0.03
Egg
1
Water (ml)
10
Fresh milk (ml)
20
Fruit (slices)
3
Yogurt (ml)
20
Paper cup
1
4.0 PROCESS AND SYSTEM a. Cookies cupcakes production process flow chart
42
Ingredient measuring
Mixing the mixture of cookies cupcake Checking the quality of mixture
Dividing mixture
Put the mixture into paper cup
Baking process
wait for cold
check the quality of cookies cupcake making process cream design the top of cookies cupcake
cookies cupcake are wrapped
check the quality of package 43
the packages are arranged in box
carry the boxes into storage room store the boxes in storage room
delivering service
b. Delivering service i. The customer order the cookies cupcake either on call or e-mail. ii. We receive the order and process the order. iii. Get the delivery workers to send the order.
5.0 PRODUCTION SCHEDULE.
Time
Activities 44
Early morning
Make the cookies cupcake
(5 a.m.)
mixture. The mixture are kept in storage room.
Bake cookies cupcakes using oven at 160 degrees as long as 15 minutes. Morning Open the shop and kiosk. Selling the cookies cupcakes to customer.
Afternoon
We make the process baking again for tea-time.
Night
The
shop
and
kiosk
are
closed.
(10 p.m.)
6.0 QUALITY
We used high quality ingredient, equipment and machines.We hired the professional workers.We employed experience chef ( PhD on Cooking Course).
45
7.0
LAYOUT
Shelf sales
Delive ry servic e room
Shelf sales
office
Kitchen pantry
Storage room
8.0
Prayer room
LOCATION
We decide to open our business at 2 location which are : 1) Shop at shopping complex 2) Kiosk at UTHM
46
9.0 BUDGET To set up our business, firstly we having a loan at CIMB Bank at value RM 500 000. Each committee come out which RM 10 000 as capital.
EXHIBITS 1. HALAL CERTIFICATE
47
2. COMPANY SIGNBOARD
48
3. FACEBOOK FAN PAGE
4. SHELF
49
5. LICENSE CERTIFICATE
PERAKUAN PENDAFTARAN AKTA PENDAFTARAN PERNIAGAAN 1956 BORANG D(KAEDAH 13) No. Pendaftaran JM024317-T
50
FASSA FLOUR LOT F14, CARREFOUR BATU PAHAT 86400 BATU PAHAT JOHOR Dengan ini diperakui bahawa Perniagaan yang dijalankan dengan nama
FASSA FLOUR Telah didaftarkan dari hari ini sehingga 3 JANUARI 2015 menurut peruntukan – peruntukan Akta Pendaftaran Perniagaan 1956, dengan nombor yang ditunjukkan di sini dan tempat utama perniagaannya LOT F14, Carrefour Batu Pahat, Batu Pahat, 86400 Batu Pahat, Johor. Jenis Perniagaan Menjual dan membekalkan kek cawan coklat serta menyediakan perkhidmatan penghantaran. Bertarikh di JOHOR pada 3 JANUARI 2014 MASNIZAH BINTI AROF Penolong Penasihat Perniagaan Semenanjung Malaysia DOKUMEN INI ADALAH CETAKAN KOMPUTER DAN TANDATANGAN TIDAK DIPERLUKAN
6. MEMBERSHIPS CARD
51
7. POSTER
52
REFERENCES 1)https://www.google.com.my/search? hl=en&noj=1&biw=1366&bih=643&q=kedai+jualan+cookies+cupcake+di+johor&oq=kedai+jual an+cookies+cupcake+di+johor&gs_l=serp.3...23211262.23229600.0.23230330.61.52.0.0.0.3.1431 .36830.0j4j4j2j2j16j3j16.47.0...0.0...1c.1.11.serp.1c9C88826Ps
53
2) https://www.facebook.com/pages/Il-lecca-lecca-chocolate-and-cookies/256472551049166 3) http://citarasawan.blogspot.com/2012/01/senarai-kedai-bahan-bekalan-bakery.html 4) https://www.facebook.com/pages/Cuppacake-BLicious/114193641479 5) http://kaknorcookies-mufin.blogspot.com 6) MODUL TENAGA PENGAJAR BPK 20802 (KEUSAHAWANAN) 7) SLIDES SHOW FROM LECTURER
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