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FACULTY OF EARTH SCIENCE

EFT 4082 STUDENT IN ENTERPRISE PROGRAM (SIEP)

BUSINESS PROPOSAL

FONG MEI YONG

E14A0057

BACHELOR DEGREE OF APPLIED SCIENCE

(GEOSCIENCES)

SIEP 4
Contents
1.0 Introduction SIEP 4 .................................................................................................................. 2
2.0 Executive Summary ........................................................................................................................ 2
2.1 Identify Business Opportunities ................................................................................................ 2
3.0 Product and Service ........................................................................................................................ 3
3.1 Introduction ................................................................................................................................. 3
3.2 Purpose of Business Proposal............................................................................................... 3
3.3 Business Background .................................................................................................................. 3
3.4 Owners Background ................................................................................................................... 4
4.0 Management Team Plan................................................................................................................. 4
4.1 Organizational Chart.................................................................................................................. 4
4.2 Schedule of Task & Responsibilities.......................................................................................... 5
4.3 Schedule of Remuneration ......................................................................................................... 5
4.4 Office Layout Plan ...................................................................................................................... 5
4.5 Administration Budget ............................................................................................................... 6
5.0 Industry & Market Analysis .......................................................................................................... 6
5.1 Service Description ..................................................................................................................... 6
5.3 SWOT Analysis ........................................................................................................................... 8
5.4 Marketing Budget ....................................................................................................................... 8
6.0 Operation Plan ................................................................................................................................ 9
6.1 Process Flowchart ....................................................................................................................... 9
6.2 Equipments Planning.................................................................................................................. 9
6.3 Operation Layout Plan ............................................................................................................... 9
6.4 Operational Budget ................................................................................................................... 10
7.0 Financial Plan ................................................................................................................................ 10
7.1 Source of Capital ....................................................................................................................... 10
7.2 Project Implementation Cost Schedule ................................................................................... 10
7.3 Pro forma Cash Flow Statement.............................................................................................. 11
8.0 Conclusion ..................................................................................................................................... 11

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1.0 Introduction SIEP 4
The objective of SIEP 4 is different from the previous SIEP. SIEP 4 is fully exposes
to the real challenges of the business world and entrepreneurships. In the real business world,
many unpredictable problems and challenges may be emerged which affect the business
operation and structure. Hence, entrepreneur needs to expose to the real challenges first
before start up their own business. On the other hand, students are needs to prepare a business
proposal which include the necessary information of the business and the opportunity of the
business to be set up in the market. The tasks in this SIEP 4 are to prepare a full business
proposal for a new business idea including profile and service, management team plan,
industry and market analysis, operation plan and financial plan. The business proposal is
essential to determine the viability of a business. A good business proposal can be used as a
guide to the business and lead the business to continuous growth.

2.0 Executive Summary


Name of Company Georesearch Malaysia Sdn. Bhd.
Business fields Services
Business overview Georesearch Malaysia Sdn Bhd is an organization/company with a
philosophy that unites all the commitment, motivation, teamwork
and dedication, to provide a quality service in an effective and
professional manner. We provide full service in site investigation
and also mining exploration. Besides that, Georesearch Malaysia
also provides free education about geological knowledge to
students and citizens.
Objective of the business 1) To provide high and effective service in site investigation.
2) To provide consultation on the geological problems.
st
Date of Commencement 1 September 2017
Target market Construction/Exploration Company
Operation budget RM 20,000

2.1 Identify Business Opportunities


Nowadays, many exploration and construction company could not able to get directly to a
mining region, construction site to start doing geological investigation. They need extra
services like consultancy, temporary developers, transportation, brokerage, financial
consulting, machine sales, risk assessment services, power supply, equipment leasing,
Software and technology, safety services and even data mining.
There is abundance of mineral resources that available, hence there are lots of
business opportunities. For examples limestone mining, quarry, gold mining, iron-ore mining
are the business opportunities around. Therefore site investigation service is a must for all
these business around.

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3.0 Product and Service
3.1 Introduction
Profile Descriptive
a) Name of business Georeseach Malaysia Sdn. Bhd. is a service-based organization that
provide expertize for site investigation and geological investigation.
b) Intention to start This organization idea came when I travel to Indonesia and do the Final
up business Year Project. I got the opportunities to communicate with the expertise
there and surprise that the idea of organization is very interesting and
meaningful. They educated the peoples around about the geological
knowledge and educate the students about geology. Besides that the
organization also joins the exploration for minerals, ores and coal mining.
c) Industry profile Georesearch Malaysia Sdn Bhd. provides service in geological
investigation.

3.2 Purpose of Business Proposal


a) To analyze and evaluate the viability of proposed business.
b) To convince relevant parties as to the investment potential of the business.
c) To allocate business resources more effectively.
3.3 Business Background
Name of company Georesearch Malaysia Sdn Bhd.
Registered address UMK Kampus Jeli, Beg Berkunci No. 100, 17600 Jeli, Kelantan.
Telephone No./ Fax No. 017-2004 0728
Email georesearchmalaysia@mail.com
Website www.georesearchmalaysia.grm
Form of business Sole Proprietorship
Date of registration 1st June 2017
No. of registration 17031990-Y
Date of commencement 1st September 2017
Main activity Provide expertize for site investigation and geological investigation.
Name of bank Bank Islam Sdn. Bhd.
Account No 251705039490

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3.4 Owners Background
Name Fong Mei Yong
Permanent Address Taman Mahawangsa, 05150 Alor Setar
Academic Bachelor of Applied Science (Geoscience) with Honor
Qualification
Course Attend Education for Geosciences
Skill/experiences - Good in using computer and geological software
- Good in presentation and communication
- Good in proficiency languages (English, Malay and Mandarin)
- Had been worked as assistance geologist for one year.

4.0 Management Team Plan


Vision To be the most convenient and effective geological service for the clients and
educates the students about the earth sciences.
Mission To do more connection with other organization and company and build
credibility within 5 years.
Objectives a) To experience the entrepreneur skill and geological knowledge.
b) To explore new knowledge about entrepreneurship.
c) To instill the ethnic value and responsibility in startup a business.
Location Universiti Malaysia Kelantan Kampus Jeli, Beg Berkunci No. 100, 17600 Jeli,
Kelantan.
Type of building Small Office
Available Working table and field basic equipments
facilities
Cost RM 20,000

4.1 Organizational Chart


Company Owner
(Geologist)

Assistance Geologist Assistance Geologist

Field Technician

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4.2 Schedule of Task & Responsibilities

Position Responsibilities
Company Owners - To lead and oversee the implementation of the company’s long and short term plans in
accordance with its marketing strategy
- To ensure effective internal controls and communication between clients.
- To assess the principal risks of the company and to ensure that all the risks are being
monitored and managed well.
Assistance Geologist - To assist the geologist during exploration
- To give support in geological mapping and exploration.
- To prepare reports of findings.
Field Technician - Performed outdoors and in remote locations, to be on site for several days at a time.
- To collect samples and identifying their mineral content using both manual and computer
equipment.
- To prepare reports of findings.

4.3 Schedule of Remuneration


Position Monthly salary EPF contribution SOCSO (2%) Amount (RM)
(RM) (12%) (RM) (RM)

Geologist RM 4,000.00 RM 480.00 RM 80.00 RM 3,440.00

Assistance Geologist RM 4,000.00 RM 480.00 RM 80.00 RM 3,440.00


(x2)

Operation RM 2,000.00 RM 240.00 RM 40.00 RM1,720.00


Technician

Total Per Month RM 10,000.00 RM 1,200.00 RM 200.00 RM 8,600.00

4.4 Office Layout Plan

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4.5 Administration Budget

No. Particulars RM RM RM
1 Fixed assets
- Renovation RM 400.00

2 Monthly expenditure
- Land & Buildings (Rental) RM 250.00
- Salary (EPF & SOCSO) RM10,000.00

3 Other expenditure
- License RM 300.00

Total (RM) RM 400.00 RM 12,500.00 RM 300.00

Grand Total (RM) RM 13,200.00

5.0 Industry & Market Analysis


5.1 Service Description

Georesearch Malaysia communicates geological findings by writing research papers,


participating in conferences, and/or teaching geological science at universities. Besides that, we
measure characteristics of the Earth, such as gravity and magnetic fields, using equipment such as
seismographs, gravimeters, torsion balances, and magnetometers. Georesearch Malaysia analyse and
interpret geological, geochemical, and geophysical information from sources.

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5.2 Market Analysis
Market Analysis Descriptive
Target market - Construction and Mining Company
Market size - Potential Construction, government and mining company
- RM1,000/days x 26days = RM26,000.00
Competitors - There are one potential competitors in Malaysia
Market share
Competitors Percentage (%) Amount (RM)
Geosolution Malaysia 100 RM 26,000.00
Total 100 RM 26,000.00
Market share: Before entry

Competitors Percentage (%) Amount (RM)


Geosolution Malaysia 50 RM 13,000.00
Georesearch Malaysia 50 RM 13,000.00
Total 100 RM 26,000.00
Market share: After entry

Sales forecast - First year  Monthly forecast


- Second & Third year  Annual forecast based on certain percentage
increased.
Marketing - Advertising in social media (Facebook, Twitter and WhatsApp)
Strategies - New idea and technological for solving geological issues.

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5.3 SWOT Analysis

• Low startup capital • Lack of credibility


• High target market and • Take time to build
potential in the up the team.
geological survey and • Small form of
investigation. business
• Easy to manage
due to not many
workers.
STRENGTH WEAKNESS

OPPORTUNITIES THREATS

• Provide services and


•Competitors
expertise to capture
market transition
• Enhance this services to
have high competitive
value

5.4 Marketing Budget


No. Particulars RM RM
1 Fixed assets
- Sign Board RM 100.00
2 Other expenditure
- Data Plan (Advertisement in RM 30.00
Social Media)
Total (RM) RM 100.00 RM 30.00
Grand Total (RM) RM 130.00

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6.0 Operation Plan
6.1 Process Flowchart

Business • Getting business from potential customers

• Before enteringto the field,


Planning and planning and man power
Discussion division is needed.

• Geological
Field Mapping
mapping

6.2 Equipments Planning


No. Item Quantity Price Per Unit Price
1 Garmin GPS 64xs 2 units RM 1,000.00 RM 2,000.00
2 Brunton Compass 4 units RM 800.00 RM 3,200.00
3 AstWing Hammer 4 units RM 250.00 RM1,000.00
4 Tables & chairs 3 sets RM 100.00 RM 300.00
TOTAL RM 6,500.00

6.3 Operation Layout Plan

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6.4 Operational Budget
No. Particulars RM RM RM
1 Fixed assets
- Machinery & Equipment RM 6,500.00
2 Monthly expenditure
Electric and water R M 100.00
3 Other expenditure

Total (RM) RM 6,500.00 RM 100.00


Grand Total (RM) RM 6,600.00

7.0 Financial Plan


7.1 Source of Capital
Plan for the sources of the capital are important to overcome the business implementation
cost. It is come from the bank loan. (Sources of capital: Bank Islam Loan – RM 20,000.00)

7.2 Project Implementation Cost Schedule


Project Implementation Cost Schedule shows how much investment in term of fixed assets
cost, expenses and other are needed to start the business.
A. Capital Expenditure Amount(RM) Amount (RM)
Land & Building (Rental) RM 250.00
Renovation RM 400.00
Sign Board RM 100.00
Machinery & Equipment RM 6,500.00
Sub-total RM 7,250.00
B. Working Capital (per month)
Administrative RM 10,000.00
Marketing
Operations RM130.00
Sub-total RM 10,300.00
C. Other Expenditure
Business Registration License RM 300.00
Sub-total RM 300.00
Total Project Implementation Cost RM 17,850.00

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7.3 Pro forma Cash Flow Statement
Pro forma cash flow statement refers to the projected statement of cash flow and out flow
throughout the planned period.

Year Pre-Operation Year 1 Year 2 Year 3


Subject (RM) (RM) (RM) (RM)
CASH INFLOW:
Bank Loan RM 20,000.00
Cash Sales RM 156,000.00 RM 171,600.00 RM 188,760.00
TOTAL CASH INFLOW RM 20,000.00 RM 156,000.00 RM 171,600.00 RM 188,760.00

CASH OUTFLOW:
A. Administrative
Expenditures
Worker salaries (EPF and RM 120,000.00 RM 120,000.00 RM 120,000.00
SOCSO)
B. Marketing Expenditures

C. Operating Expenditures
Utilities
Other Expenditure RM 100.00 RM 100.00 RM 100.00
License Renewal
Pre-Operation
Business Registration & License RM 300.00
Fixed Assets
Purchase of Fixed Assets - RM 7,400.00
Others
Loan Repayment
Principal RM 4,000.00 RM 4,000.00 RM 4,000.00
Interest RM 1,000.00 RM 800.00 RM 600.00
TOTAL CASH OUTFLOW RM 7,700.00 RM 125,100.00 RM 124,900.00 RM 124,700.00

CASH SURPLUS (DEFICIT) RM 12,700.00 RM 50,900.00 RM 46,700.00 RM 68,656.00

BEGINNING CASH RM 12,700.00 RM 63,600.00 RM 110,300.00


BALANCE
ENDING CASH BALANCE RM 12,700.00 RM 63,600.00 RM 110,300.00 RM 178,956.00

8.0 Conclusion
In conclusion, the business proposal is done to carry out the organization. By
completing the business proposal of Georesearch Malaysia, I learnt how to prepare a business
proposal in future. The business proposal is comprised of owner profile, business details,
marketing plan, financial and operational plan. The business proposal is able to determine the
successes of a business. Hence, an entrepreneur should prepare good business proposal before
starting his business.

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