GENIE

make your wish come true......

"Conversational Commerce" platforms became a priority for some of

the world's biggest companies, e-commerce retailers and new start-ups.
Businesses leverage the power of social messengers for customer
communication - it uses technologies consumers enjoy using with
artificial intelligence for them to interact with brands or services through
bots. 'When responsiveness meets discoverability, users get the best of
conversation and the internet together' - Derry Finkeldey, Research
Director at Gartner.
Contents Page
1.0 Executive Summary 3
1.1 Objectives 3
1.2 Mission 4
1.3 Keys to Success 4
2.0 Company Summary 5
2.1 Company Ownership 5
2.2 Start-up Summary 5
3.0 Products & Services 7
4.0 Market Analysis Summary 9
4.1 Market Segmentation 9
4.2 Industry Analysis 10
4.2.1 Competition and Buying Patterns 11
5.0 Strategy Implementation Summary 13
5.1 Competitive Edge 13
5.2 Sales Strategy 14
5.2.1 Sales Forecast 15
5.3 Marketing Strategy 16
5.4 Milestones 18
6.0 Web Plan Summary 18
6.1 Website Marketing Strategy 19
6.2 Development Requirements 19
7.0 Management Summary 19
7.1 Personnel Plan 20
8.0 Financial Plan 21
8.1 Projected Profit and Loss 21
8.2 Break-even Analysis 22
8.3 Pro Forma Balance Sheet 22

GENIE | make your wish come true

1.0 Executive Summary

GENIE is an on-demand chat based personal assistant and personal concierge service. It is a
messaging-based service that acts as your personal assistant and personal concierge service.
Our company tagline is to "make your wish come true". At the same time, giving an
opportunity to consumer to have a personal assistant, on-demand without having to worry
paying a monthly salary because we only pay for the service that we use. The idea of having
a personal concierge and personal assistant is to help us in completing our daily routine or
urgent task whenever and wherever we are without have to leave our living room. In addition,
GENIE is also a marketplace that as well serve as a bridge towards GENIE's mobile app and
feature the same convenience and access similar to the web store. Just a few clicks, we
provide our customer any other things that they might need with the best deals from all over
the world on our online store. They can shop multiple things at once and GENIE will make
sure to deliver the goods to their doorstep at the right place and at the right time.

Although the on-demand personal assistant and personal concierge business model is still
very new in Malaysia, but we believe that a monopoly will benefit the industry and the
consumers. It will definitely change the way we buy and these services will totally fit in with
our busy and demanding lifestyles.

GENIE was founded by two individuals, that have totally different speciality and skill set that
can complement each other in every single aspect. The company located at the heart of
golden triangle of business areas in Kuala Lumpur, Malaysia. GENIE start-up capital derived
from both of the founders personal funding amounting RM200,000.

1.1 Objectives
To make GENIE a reliable, trustable and efficient on-demand personal assistant and
personal concierge service globally.
To give an opportunity to all consumer to have a personal assistant and concierge
service anytime they required without have to worry about overhead problem.
A hub that provide the best deals offered from all over the world without have to
worry on hidden charges.
To create consumer experience by using conversational commerce as a platform to a
perfect complement to the purchasing stage of the consumer journey. 3

GENIE | make your wish come true

1.2 Mission
GENIE's mission is to "make your wish come true". By providing a reliable, trustable and
efficient on-demand personal assistant and personal concierge service by using
conversational commerce as a platform with lower cost possible and deliver high-end quality.
We strive to create consumer experience without having them to leave their home.

1.3 Keys to Success

Although GENIE is a new start-up company in e-commerce industry, but there are three
main keys to ensure the organization's success. There are;

E-store with a concierge

Besides on-demand personal assistant and personal concierge service, GENIE also
open an e-store with a concierge that's available just for their consumer at each and
every step, so that their shopping experience becomes conversational again. The store
reside on GENIE's website is the one stop centre for their existing consumer and
potential buyer to purchase items and have them delivered to their door step. The e-
store give customers the opportunity to choose both date and time of delivery for their
purchased items and GENIE will coordinate the delivery schedule and ensure all
goods are delivered at the right place and at the right time.

Trusted and reliable service provider

It's not easy for an individual to ask other individual to run their important errand and
expect them to complete and deliver the task as good as they wanted it to be. But for
all GENIE's services, customer only pay for completed and satisfied services.
Customer is not required to pay their services bill if they don't feel satisfy as long as
they can rationalize it with a valid reason. In addition, you don't have to worry on the
availability because GENIE's customer can send text messages requesting for
anything anytime that they desire. GENIE is available 24/7 everyday, 365 days a year.
There is no such thing is public holiday, goes on vacation, sick leave or quitting.
GENIE will serve their customer endlessly without a complaint. Moreover, existing
and potential customer will have secure and trusted payments

GENIE | make your wish come true

 Convenient
GENIE will get anything done for their customer even on their complicated requests
as long as its legal. GENIE's customer don't have to think about the traffic, parking, or
even bargaining for the best prices. What's more GENIE's customer don't have to
worry about queuing anymore because they don't have to leave their home and
everything will be delivered to their door step. As long as you have your smart phone
with you, consider everything is done. Most important of all its "hassle free".

2.0 Company Summary

GENIE is a start-up company that plans to capitalize on the growing e-commerce market in
Malaysia. The organization is a messaging-based service and using conversational commerce
platform to get connected to their existing and potential customer. In addition, GENIE is also
a marketplace. The online store covered any other things that their customer might need and
they can shop multiple things at once without have to worry on the safety issue. Even though
from a top perspective, the e-commerce market in Malaysia often looks congested but in
reality, there's still plenty of area for development in the e-commerce and concierge service
both in Malaysia and in ASEAN. In fact, market size of e-commerce in Malaysia estimated
about USD 7 billion according to e27's article that they reported earlier. Succinctly, GENIE
believe they can penetrate and become the fierce player and be the one who able to capture
market share in e-commerce industry.

2.1 Company Overview

GENIE Sdn Bhd is owned by Farzihan Hassan (50%) and Mohd Rizal Azmi (50%). The
organization was incorporated in Kuala Lumpur, Malaysia in 2016.

2.2 Start-up Summary

Ms. Farzihan and Mr. Rizal has invested RM200,000, which covers the start-up expenses,
with the remaining amount contributed towards the cash requirements. At this current phase,
the organization is looking for short-term loan amounting RM150,000 to begin financing
technology development and hiring more resources for concierge services. The start-up
expenses covers list follows:
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GENIE | make your wish come true

 Legal fees
Office rental, deposit and utilities
Office supplies
Office furniture
Website development - This will be used for information disbursement
as well as e-store.
Mobile apps development - For iphone and android users. Linked with
GENIE website and give out similar function.
Payment Gateway
Telephone line installation
Security & surveillance
Computers (Apple Mac) & Printer - Latest high end models and utilize software for
Microsoft Office, Adobe Photoshop and Illustrator, Macromedia FreeHand, Wiz Pro
and QuickBooks Pro.
Broadband Internet connection
Rental of Development Server

Table 1 showed start-up summary with amount.

GENIE | make your wish come true

 TABLE 1
START-UP FUNDING
Start-up Expenses to Fund 54,800.00
Start-up Assets to Fund 145,200.00
TOTAL FUNDING REQUIRED RM 200,000.00
Start-Up Expenses
Legal fees 2,000.00
Office rental + deposit + utilities 7,000.00
Computer equipment & printer 21,000.00
Server Rent 5,000.00
Office furniture 8,000.00
Office supplies 1,000.00
Security and Surveillance 500.00
Telephone line installation, Broadband Internet Connection &
300.00
Payment Gateway
Website development & Mobile Apps 10,000.00
TOTAL START-UP EXPENSES RM 54,800.00
Start-up Assets to Fund
Cash Required 50,000.00
Start-up Inventory -
Other Current Assets 50,000.00
Long-term Assets 45,200.00
TOTAL ASSETS RM 145,200.00
TOTAL REQUIREMENTS RM 200,000.00

3.0 Product & Services

GENIE famous tagline is to "make your wish come true". Following to that the organization
offering on-demand personal assistant and concierge service anytime, anywhere and deliver it
to their customer ASAP. On top of that GENIE is also a marketplace. The organization
opened up an online store with a concierge that provide the best deals offered in one stop
centre.
It is a messaging-based service that allow consumer to send message through their smart
phone, Facebook Messenger or Instagram for any request that they have and expect to receive
their goods delivered to their door step. The e-store is available in GENIE website as well as
mobile app. GENIE's existing and potential customer can shop online and purchase multiple
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things at once and arrange the delivery date and place that suited their time.

GENIE | make your wish come true

Some of services that GENIE offered as follows:

Purchase gift
Tax filing
Purchase movie ticket
Arrange babysitter
Office or house cleaning
Restaurant recommendation and reservation
Buying your favourite food and get it delivered to your place
Book hotel
Purchase grocery
Purchase furniture
Pet services
Organize event to surprise your love one and many more.

If customer couldn't find what they looking for in the website, they can just send in their
request and ask for quote and GENIE will get it done as their wish. What's more, GENIE also
provide their customer few recommendations and options for them to choose from based on
their criteria requirement and budget. Picture 1 show "Step How to Use GENIE Service".

Picture 1: Step How to Use GENIE Service

GENIE | make your wish come true

4.0 Market Analysis Summary

At the present time e-commerce market size in Malaysia estimated about USD 7 billion
although from high-end perspective Malaysia e-commerce market often looks crowded but
there's still space for growth both in Malaysia and in ASEAN. In 2015, research firm Juniper
reported there are more than 94 million digital messages were sent with the bulk being
through email. On the other hand, in mid-2016 instant messaging has just about attained its
turning point on the total number of instant messages sent surpassing emails. Messaging apps
are becoming the favourite way of communication. E-marketer mentioned 1.4 billion
consumers used messaging apps in 2015, which is up 31.6% from 2014 and that number is
expected to hit 2 billion by 2018. Consumers are increasingly more dependent on using
messaging apps for all forms of communication, whether it's for personal, business or
commerce. In conclusion, conversational commerce is the new "battleground" for customer
service.

4.1 Market Segmentation

GENIE will be focusing on two distinct groups that commonly utilize on-demand personal
assistant and concierge service: professional and non-professional individual and
organization.
The professional corporate customer is an organization that using GENIE's services for its
employees. The tasks for the employees will range considerably; but, the essential
requirement will be for services made during business hours. For instance, lots of
organization would rather have the employee at work being productive instead of running an
errand. It will increase efficiency towards employee and the organization. This is where
GENIE jump in. GENIE will provide range of services to suit its customer preferences and
budget.
The second group of customers are professional and non-professional individuals. Basically,
this group has similar needs to the employees of organizations, however their request will be
more personal and intimate. This group of individuals can be divided into two subgroups;

working parents
For those who don't have time and busy with their daily routine every day, they can
seek GENIE assistant and GENIE will help them to accomplish their needs. Usually 9

individual that often use GENIE's services are working parents. Due to their busy
GENIE | make your wish come true
 schedule and everyday jobs in the office, they don't have time to fulfil their household
tasks. Such as buying grocery, cleaning the house, cooking dinner and many more. In
a way GENIE will ease their problem. They can just send a text message request for a
help and GENIE will take care of the rest without question ask.

lazy people
There will be a time when we wish that we don't have to do anything just lay on our
bed and have people to serve us. We are hungry but lazy to cook, we want to go out to
buy our favourite food but the restaurant is too far and the traffic is bad, we have
nothing fancy to wear but we are so lazy to pick up our laundry and many more. No
worries, GENIE is there to make your wish come true. Just few clicks away and
GENIE will fulfil all your wishes and get it delivered to you on the same day.

4.2 Industry Analysis

In recent years, on-demand personal assistant and personal concierge service no longer
dominated by celebrities and affluent professionals. In the emerge of conversational
commerce platforms in e-commerce, on-demand personal assistant and concierge service that
based on messaging service is rapidly increasing among private households and corporate
employees that in need for these services to carry out a variety of their household tasks. The
growth in clientele has helped the industry thrive, as revenue increased in each of the past
years.
E-commerce has gone from the point of being conversational - traditionally we will be going
to the store, speak to the sales representative and make a purchase but now everything is
being electronic. E-commerce is known as a business that gives millennials the opportunity to
choose what they want from a wide range of products as long as there is internet connection.
Conversational commerce platform allowed them to still interacting in robotic way even with
their busy and anti-social lifestyles to send in their request. Whether or not personalizing a
customer's shopping experience, inspirational customer service with a "personal buying
assistant", or catalyzing successful content marketing, we need to admit the fact the
"artificial intelligence" (AI) is shifting the way things are done in the e-commerce world and
is something business start-up can't ignore this year.
However, conversational commerce is still a new concept here in Malaysia. There are only
few people are aware about this messaging based service existence. At the same time, 10

companies likes GENIE are still struggling with ways in which they can offer perks to their
GENIE | make your wish come true
customers at reasonable costs. Besides that with the decreased disposable income and lower
corporate profit during the recession, demand for personal assistant and concierge services
are not that convincing due to cut back on discretionary expenditures.

GENIE: PORTER'S FIVE FORCES MODEL

4.2.1 Competition and Buying Patterns

In Malaysia, there are few competitors in the on-demand personal assistant and
concierge service area. With the help of social media such as Facebook and
Instragram, the exposure for this market is everywhere especially for social butterfly.
However in reality, there are very few players that are able to fully monopolise their
respective markets. For GENIE its main competitors in Malaysia are Helpr and
Bemalas. Both of these companies have the closest business models with them. Table
2 showed GENIE and both of its competitors business models.

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GENIE | make your wish come true

 Table 2
GENIE Bemalas Helpr
Contact SMS, Whtsapp or send SMS or leave private message Facebook messenger or email
message thru Facebook on Facebook
Messenger or Instagram DM
Operating Hours Daily Daily Monday to Friday
Available 24/7 9am - 9pm 9am - 6pm
Responds 3 hours or less 4 hour or less Not stated
Service fees RM25 and above RM25 and above RM35 and above
Depending on the purchase item Depending on the purchase Depending on the purchase item weight
weight and size. item weight and size. and size.
E-store Available Available NIL
Delivery Nationwide delivery Nationwide delivery Nationwide delivery
Payment Gateway Paypal & SurePay Paypal & ipay88 Paypal & Billplz
Available Anywhere in Malaysia. Delivery Anywhere in Malaysia and Anywhere in Malaysia. Delivery service
service only within Klang Valley. Singapore. Delivery service subject to available areas.
subject to available areas.

Consumers buying trends are linked to limited of time and an overly competitive
brand environment. Consumers don't want to waste their precious time making
choices, whether it's shopping for toiletries in the supermarket aisle, selecting
cosmetics at a department store counter or choosing an accommodation for business
or family holiday. If they need to choose, they would rather stay at home relaxing,
watching TV and playing with their phone instead of having to go through all the
hassle unnecessarily.
In order to suit with consumer needs and buying pattern, over the last two years,
messaging apps have started to outdo social networks when it comes to where people
spend their time. Electronic commerce trend became more distinct than ever. Its
became a platform for marketer to infuse online marketing communications with as
much relevant information as possible to become a guideline for consumer to make an
accurate judgment and choice. At the same time, by offering consumer personal
concierge services it's like killing two birds with one stone. Consumer can make
purchase thru the e-store and get it delivered to their doorstep without having to leave
their home.
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GENIE | make your wish come true

5.0 Strategy and Implementation Summary

GENIE will leverage their three competitive edges to quickly gain market share. The
competitive edges are great online service, wide range of product and service offering and
customization. The sales campaign will emphasize making the experience as easy and
pleasing as possible to encourage repeat customers and word of mouth referrals.

5.1 Competitive Edge

The competitive edge in other word is a competitive advantages of the company that differ
them from the competitors. The GENIE strive to achieve the competitive advantage through
3 strategy that consists of:

Great online service

a. GENIE focusing in providing fast online service through emphasizing on site
search function in order to makes customer easy in finding the right product or
services. Among other element that stress out in order to deliver great
services: Grouping of products according to how customers search for them.
b. Plenty of information on the products (how to use them, how they fit into the
lives of customers, care and cleaning, maintenance, comparison information,
customer reviews, etc.)
c. Make the order system easier with fewer steps.
d. Offer options for storing payment and shipping information so the customers
dont have to type it in again for subsequent purchases.
e. Offer multiple payment and order options.
f. Provide regular, personalized newsletters with useful information.
g. Include multiple ways for the customer to contact company representative.

Wide-range of products and service offer

GENIE carryout a wide selection of related products, in which customer can make a
complete purchase more easily. For example, a mattress reseller that also offers sheets
and comforters may find an advantage in promoting the complete package. This
advantage meets the demands of consumers who are looking to save time and make
shopping easy. Furthermore, GENIE also offer variety product and service assortment 13
that offer by other offline and online stores. In other word, customer could find all

GENIE | make your wish come true

 product together with hard-to-find brands as well as imported brands. All this kind of
product are available at the GENIE.

Customization/ Personalization
The GENIE strive to focus on serving everyone as the competitive advantage in the
marketing message. This is due to the millennials customer that have their individual
specific needs and desires. Every customer have different needs and wish to be
fulfil. GENIE will do the best in providing and delivering the product and service
based on the customer requirement.

5.2 Sales Strategy

The sales strategy will emphasize the fact that ordering through GENIE is convenient and
pleasing experience. The only thing that you need is your smart phone. GENIE sales team
will work on the continual development of the website and customer experience as their main
tools of attracting people to use GENIE services.
Not only that, it is important to have user friendly, easy to use and attractive web interface for
consumer to use based on these two main reasons. One, there are so many choices available
in the market that could become daunting to the customer. The second reason is from a
customer behaviour prospective a large portion of sales will be placed thru the e-store in
GENIE website. It is imperative to make it simple and convenient for people to avoid any
inconvenient occur during ordering process due to cumbersome or difficult
instructions. GENIE believe in implementing and embracing philosophy that can create
pleasant customer experience throughout their buying journey, will encourage customer to
come back for more.
Besides that GENIE also rely on these three strategies to help boost up GENIE sales returned.
There are as follows;

Exemplary Customer Service

To have an excellent customer service is by providing service that beyond customer
expectations. Customer need to experience the feeling that GENIE not only doing this
for business but actually to fulfil their interest. With this customer will feel
appreciated and value even after the sales transaction is completed.
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GENIE | make your wish come true

 Respond Time and Delivery
GENIE will try their best to respond to any of customer request or enquiries within 3
hours or less, as soon as they can. GENIE representative will make sure once the
payment is received all orders and services are delivered and performed ASAP in
short period of time.

Online Offers or Gifts

Online offers or gifts will be given to GENIE loyal customer. In this way, it will
encourage customer to use GENIE services more often and what's more customer will
feel appreciated and special.

5.2.1 Sales Forecast

The sales forecast is the process of estimating future sales. This sales forecast will
enable organization to make business decision and predict short-term and long-term
company performance. In initial stage, the sales forecast for GENIE shows a slow
movement due to the initial start-up phase of business. Then, in the second year the
sales increase as customer shows their interest in buying products and services
through GENIE. The Table 3 and Graph 1 showed the sales forecast of GENIE in three
years.

GRAPH 1

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GENIE | make your wish come true

 TABLE 3
SALES FORECAST
YEAR 1 YEAR 2 YEAR 3
Sales
Products & Services 187,000 323,500 494,250
Ad placement by retailers 71,500 102,575 261,250
TOTAL SALES 258,500.00 426,075.00 755,500.00
Direct Cost of Sales Year 1 Year 2 Year 3
Products & Services 108,050 186,500 233,535
Ad placement by retailers 32,500 46,625 95,000
Total Direct Cost of Sales 140,550.00 233,125.00 328,535.00

5.3 Marketing Strategy

The marketing strategy that will emphasize by GENIE is based on integrated marketing
communication. In this integrated marketing communication, GENIE will integrated in term
of product and services, price, partnership, place, promotion, people, process and physical
facilities. There are;

Product & services - Wide-range of products and services. GENIE will update
their e-store in their website regularly. The product that displays in GENIE e-
store will be more up-to-date and trendy based on their existing and potential
customer requirements. At the same time, services that not available in the website or
mobile apps can be requested directly to GENIE representative directly.

Price - Product price in GENIE e-store is set strictly by the e-retailer

supplier. GENIE will only advice the supplier to offer the reasonable price and try to
pursue the e-retailer to give the best price as much as they can without
jeopardising their profit in return.

Partnership - All products that purchased by customer in the e-store will be

delivered to the customer directly by the supplier itself. This will avoid any
unnecessary inventory charges to GENIE. Moreover, by doing this GENIE interaction
with the e-retailer will be more interactive because every purchased made GENIE will
16
need to inform the supplier directly. This healthy and trustworthy partnership

GENIE | make your wish come true

 relationship will enable GENIE to convince their customers and at the same time,
promoting GENIE e-store to other e-retailers who want to use GENIE as a platform to
display their goods and eventually become one stop centre that provides the best deals
globally.

Place - Website and social media will be maintained by GENIE

social media representative that will make sure the products and services shows in the
apps are easily and clear for customer to shop conveniently. Any questions from
customers will be assist by the social media representative as well.

Promotion - GENIE promotional campaign will cover all aspects in

advertising such as banner ads and inserts in a local newspapers and selected
magazine . Not only that advertisement will be place at social media such as
YouTube, Facebook, Instagram, Yahoo and Google newsfeed corners. In addition,
GENIE will be offering online coupons and free gifts to selected customers who are
using their services more than two times within four months.

People - People are the most important in GENIE marketing

strategy. In which, GENIE will only employed the right talent who have excellent
technical and social skills. The employee need to have the passion on serving people
and fulfilling the customers wish. With the right attitude GENIE existing and
potential customer will not be having problem communicating effectively with
GENIE representative.

Process - GENIE's Standard Operating Procedure (SOP) need to be on

top of their game in order to make sure the flow of requesting service and buying
process until delivering the final service or product to customer can be done smoothly
without any hiccup in the short time as possible.

Physical facilities Physical facilities is also important especially in online

business. Without excellent physical facilities, it will affect the sales of the online
company. GENIE used modern and up-to-date physical facilities that ensure their
business operation goes smoothly without any problem. Physical facilities such as 17

laptop, desktop, vehicle for delivery, mobile phone and land line.
GENIE | make your wish come true
5.4 Milestones
There are few key activities need to be accomplished prior readiness of GENIE system. For a
start, setting up new management team and defining key functional area. Then follow through
by Website and Mobile Apps development. Along the way, social media (Facebook and
Instragram) will be set-up as well. To ensure end to end readiness between technical and
business operation, engagement with selected and potential e-retailer on business
collaboration will concurrently take place. Full run test and system optimization will be
completed within 15 days. Overall timeframe for website, mobile apps and social media until
the official launching and ready date for marketplace will takes about 4 months.
Dedicated vendor appointed to carry out this project. The cost forecasted for website and
mobile apps preparation will take about RM10,000. Meanwhile for social media setting up
for Facebook and Instagram, will be handled by our IT and Social Media representative.

Milestone & Timelines for IT Development (Website & Mobile Apps Readiness)

6.0 Web Plan Summary

GENIE will have a website developed based on the philosophy that showing simplicity,
attractive to generation X and millennials and user-friendly. GENIE will only displayed
selected product and services on their website, mobiles apps and social media for customers
to place an order or services. Because of the large volume of graphic image choices, it will be
imperative that the site is easy to navigate through all the different options. The cost for
developing the website and mobile apps will be the major cost from GENIE start-up
requirement. Monthly maintenance costs will be marginal for the website development and 18

any future add on.

GENIE | make your wish come true
6.1 Website Marketing Strategy
GENIE website at www.GENIE.com will be integral in GENIE marketing effort as the site is
a key sales tool for both local and overseas customers. The website will provide information
on product and services that benefited to consumers. It will also links to organization partners
categorized by product category, and a location finder linked to online maps. The URL
address will always be used in promotional material and at the same time will encourage
people to check out GENIE website, concept, services and products that offered by them. In
additional, GENIE will be using social media network and other search engines such as
Yahoo and Google, in order to create awareness to people out there that never heard of
GENIE before. It significantly will increase the number of inquiries from people that curious
about GENIE services and what they can bring to the table.

6.2 IT Development Requirements

A computer programmer or designer has been identified as a potential candidate to manage
the design, implementation, and maintenance of the website. Apart from the website, GENIE
is in the midst of developing mobile apps in order to ease the communication with the
customer. The key process in development of GENIE applications are as follows:

Readiness of Website
Mobiles Apps via android and iPhone platforms
Existing social media via Facebook and Instagram

7.0 Management Summary

GENIE management team are positive towards business opportunity arises using
conversational commerce platform. As such, this opportunity leads to potential business
growth and profitability. At the earlier stage, GENIE need to build up good customer
relationship in order to ensure repetitive of sales and high potential for new customer growth.
GENIE is solely acting as a liaison between customer and vendor or retailer (business
partner) for GENIE e-store. GENIE basically provide a platform for others to use to promote
their products and services. Simultaneously keeping GENIE own internal resources as
minimum as possible.
Customer first experience with GENIE will be by interfacing with its website and mobile
19
apps. Therefore GENIE appointed dedicated vendor to meet stringent requirement checklist

GENIE | make your wish come true

especially for these two areas. The system develop with analogy keep it simple and short -
customer will only experience best interaction, ease and secure transaction.
GENIE will also be using secure payment gateway provided by local and international
provider such as PayPal and SurePay. This will cover all online transaction with local
banking systems such as maybank2u, cimbclick, RHBclick and credit card transaction. In
addition, using secure payment gateway will enable GENIE customer to feel secured and at
ease whenever their doing any shopping thru GENIE e-store. With minimal transaction
charges GENIE customer will no longer feel worry for any of their privacy data being breach.

7.1 Personnel Plan

GENIE will require the following personnel for business operations:

Farzihan - Business development, office management, finance,

PR and human resources.
Mohd Rizal - Business development, customer service and IT
development.
IT Executive Maintaining and developing the website, IT
application and spoke person for any problem arises pertaining to information system.
Social Media Executive - Maintaining the e-store, social media and any request
received through social media.
Logistic Executive In charge in delivering services requested from
GENIE customer and any other request that requested directly and not available in the
website and e-store.
Part-timer - In charge in delivering services or purchase and
entertaining request that received thru SMS and Whtsapp. Payment is paid per day at
RM30 for 8 hours and approved by Farzihan.

Table 4 showed us the costing for GENIE business operation team in year 1 to year 3.

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GENIE | make your wish come true

 TABLE 4
PERSONNEL PLAN
YEAR 1 YEAR 2 YEAR 3
Farzihan 24,000.00 26,000.00 28,000.00
Mohd. Rizal 24,000.00 26,000.00 28,000.00
IT Executive 20,000.00 21,800.00 23,500.00
Social Media Executive 20,000.00 21,800.00 23,500.00
Logistic Executive 15,000.00 16,500.00 18,000.00
Computer
- 21,000.00 22,500.00
Programmer/Designer
Part-Timer 2,700.00 5,400.00 6,000.00
TOTAL PEOPLE 6 7 8
TOTAL PAYROLL RM 105,700.00 RM 138,500.00 RM 149,500.00

8.0 Financial Plan

8.1 Projected Profit and Loss
Projected Profit and Loss
Year 1 Year 2 Year 3
Sales 258,500.00 426,075.00 755,500.00
Direct Cost of Sales 140,550.00 233,125.00 328,535.00
Other - - -
Total Cost of Sales 140,550.00 233,125.00 328,535.00
Gross Margin 117,950.00 192,950.00 426,965.00
Gross Margin % 55.33% 54.71% 56.51%
Expenses
Payroll 105,700 138,500 149,500
Sales & Marketing and Other 117,600 123,600 133,600
Expenses
Depreciation & Amortization 9,533.33 17,160.00 22,880.00
Research & Development 10,000 30,000 50,000
Payroll Taxes 14,565.46 19,085.30 20,601.10
Other - - -
Total Operating Expenses 257,398.79 328,345.30 376,581.10
Profit Before Interest and Taxes 1,101.21 97,729.70 378,918.90
EBITDA 25,200.00 133,975.00 422,400.00
Interest Expense - - -
Good & Service Tax (GST) 6% 15,510.00 25,564.50 45,330.00
Tax Incurred 49,115.00 80,954.25 181,320.00
Net Profit (48,013.79) 16,775.45 197,598.90
Net Profit/Sales % -4360% 17.17% 52.15%
21

GENIE | make your wish come true

8.2 Break-even Analysis
Break-even analysis table below showed that in order for GENIE to cover its yearly fixed and
variable costs in Year 1, GENIE need to trade at least 3,066.15 units of service. GENIE need
to trade 7,043.08 units of service in order to meet its profit objectives in that particular year.

BREAK-EVEN ANALYSIS (YEAR 1)

Break-even Point Per Unit 3,066.15
Assumptions
Total Fixed Costs RM 199,300.00
Desired Profit 7,043.08

8.4 Pro Forma Balance Sheet

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets -
Cash 18,305.75 80,100 261,759.56
Account Receivable - - -
Other Current Assets 50,000.00 50,000.00 50,000.00
Total Current Assets 68,306 130,100 311,760
Long-term Assets
Long-term Assets 45,200.00 55,822 77,481
Accumulated Depreciation 9,533.33 17,160 22,880
Total Long-term Assets 35,666.67 38,662.00 54,601.00
Total Assets 103,972.42 168,761.66 366,360.56
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities - - -
Accounts Payable - - -
Current Borrowing - - -
Other Current Liabilities - - -
Subtotal Current Liabilities 0.00 0.00 0.00
Long-term Liabilities - - -
Total Liabilities 0.00 0.00 0.00
Paid-in Capital 200,000.00 200,000.00 200,000.00
Retained Earnings (48,013.79) (48,013.79) (31,238.34)
Earnings (48,013.79) 16,775.45 197,598.90
Total Capital 103,972.42 168,761.66 366,360.56
Total Liabilities and Capital 103,972.42 168,761.66 366,360.56
Net Worth 103,972.42 168,761.66 366,360.56 22

GENIE | make your wish come true