Sweetie’s Cookie

Table of Contents
1.0 Executive Summary ...................................................................................................... 1

2.0 Mission Statement......................................................................................................... 2

3.0 Company Background .................................................................................................. 3

4.0 Product Description ...................................................................................................... 4

5.0 Marketing Plan .............................................................................................................. 5

5.1 Market Analysis ........................................................................................................ 5

5.2 Market Segmentation ................................................................................................ 6

5.2.1 Internet ............................................................................................................... 6

5.3 Target Market............................................................................................................ 7

5.4 Marketing Strategic ................................................................................................... 9

5.4.1 Product ............................................................................................................... 9

5.4.2 Price ................................................................................................................... 9

5.4.3 Promotion......................................................................................................... 10

5.4.4 Place/Location.................................................................................................. 11

6.0 Competitor Analysis ................................................................................................... 12

7.0 SWOT Analysis .......................................................................................................... 13

7.1 Strengths ................................................................................................................. 13

7.2 Weaknesses ............................................................................................................. 14

7.3 Opportunities........................................................................................................... 14

7.4 Threats..................................................................................................................... 15

8.0 Operations Plan ........................................................................................................... 16

8.1 Organizational Chart ............................................................................................... 16

8.2 Staffing Plan............................................................................................................ 17

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8.3 Daily Operation ....................................................................................................... 17

8.4 Business Operation ................................................................................................. 17

9.0 Financial Plan.............................................................................................................. 19

9.1 Start-Up Expenses ................................................................................................... 20

9.2 Projected Cash Flow for first 12 Months ................................................................ 21

9.2.1 Projected Cash Flow for first 3 years ............................................................... 21

9.3 Projected Income Statement for first 12 Months .................................................... 22

9.3.1 Projected for 3 years Income Statement .......................................................... 23

9.4 Projected Balance Sheet for 12 Months: ................................................................. 24

9.4.1 Projected for 3 years Balance Sheet ................................................................. 25

10.0 Timeline .................................................................................................................... 26

10.1 Start Up Timeline.................................................................................................. 26

10.2 Three Years Timeline ........................................................................................... 28

11.0 References ................................................................................................................. 30

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1.0 Executive Summary

Sweetie’s Cookie is a brand new cookie manufacturer with presence in the

Central region of Malaysia. With its first factory in Klang Valley, Sweetie’s Cookie
operates via online with a unique selling point of having a central kitchen in in order to
control the quality of its cookies. The business concept of Sweetie’s Cookie is to provide
healthy cookies with quality ingredients. With the aim to meet the different preferences
and taste of its consumers, Sweetie’s Cookie customizes its cookies basing the orders
received besides differentiating itself by the mix-and-match concept, attractive packaging
and special delivery services.

According to a report by Euromonitor International on the Biscuit industry in

Malaysia, the change in trend and lifestyle among consumers in Malaysia has significant
impacts on the biscuit industry. As Malaysians are gradually pursuing hectic lifestyles,
often times juggling with time constraints during their daily life, the demand for delicious
and healthy biscuits has increased significantly. According to CK Tan, CEO of Munchy’s
Group's CEO, the value of the biscuit market in Malaysia worth approximately RM1
billion per annum. It was also reported that the increasing number of individual packed
biscuits sold in Malaysia had made consumption to be more convenient as consumers can
easily grab a pack and consume anywhere.

Looking from the prospects of this industry, the bakery market in Malaysia has
increased at a compound annual growth rate of 8.3% between 2004 and 2009
(Datamonitor, 2011). Specifically, the biscuits category in Malaysia is expected to record
a marginal increase in constant value terms with a CAGR of 1% over the next 5 years
(Euromonitor International, 2013). Premised on the above, the positive outlook of this
industry was mainly contributed by the rising concerns on health has also coupled with
the higher disposable incomes among Malaysian consumers. This has impacted the
willingness of consumers to pay higher cost for healthy biscuits. In fact, the improved

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literacy rate among Malaysians on balanced diet and health has also boost the demand for
healthy biscuits.

Basing on the positive outlook and business opportunities in the industry,

Sweetie’s Cookie has projected that the proposed business model would promise high
return on investment within the next 3 years of operations. With the projected returns,
Sweetie’s Cookie aims to expand the operations throughout West Malaysia and
eventually venturing into East Malaysia over the next 5 years. The continuity of the
business will be further supported by the franchising strategy as Sweetie’s Cookie would
raise the bars by constantly strengthening its product appeal and market network in
Malaysia before its goes public and/or increases its market shares over the next 8 to 10
years.

2.0 Mission Statement

Sweetie’s Cookie is committed to deliver tasty and a variety of cookies in

accordance to its customer wants and preference. The ultimate goal of the business is to
manufacture and customize various cookies to its customers within Malaysia. Such
mission is achieved when Sweetie’s Cookie differentiates itself in terms of its mix-and-
match concept, attractive packaging and special delivery services. It is undeniable that
there are various cookies fan with different preferences and interest to taste a variety of
cookies at the same time. Instead of purchasing several packs which comes in certain
quantities (in each pack) to taste each and every flavour, Sweetie’s Cookie adopts a pro-
active mix-and-match approach to allow customers to savour the different types of
cookies in the bakery industry.

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3.0 Company Background

Sweetie’s Cookie is founded because of the cookies market in the country is not
popular compared with other countries such as Taiwan, Hong Kong or even Japan. The
business is selling cookies and produce varieties cookies through a central kitchen in
order to provide a standard procedure for cookies produced and ensure the best quality of
the cookies able to always meet customers’ requirement within the city. Central Kitchen
located at Klang Valley because of the transportation concern and this improves
efficiency of the logistics.

Sweetie’s Cookie consists of three founders that operating the cookies business
together. Hamzar worked as the Chief Operation Officer whereby manage the operation
of the cookies manufacturing, sales and marketing and logistics of the products. Mei
Ying is Chief Technology Officer that manages the operation of the E-commerce and any
technology related. Also, Jimmy Liew is another founder that act as Chief Finance
Officer whereby he manages the human resources, any cash or credit related and as well
as those administrations tasks of the company.

There are two different business operations that implement by Sweetie’s Cookies
which is Kiosks that planned to setup in Super Market, Hypermarket, and shopping
center in Klang Valley. And the other one is E-commerce method that approach user to
place orders and purchase through internet portal. Both operations are important as to
increase the consumers’ spending on cookies. For example, Kiosks allocated in the malls
in order to promote our cookies by different marketing method and as well as E-
commerce provided for consumers to purchase through online surfing.

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4.0 Product Description

Cookies lovers like to taste various homemade cookies over the time. This
business provides homemade cookies such as Ginger biscuit, Chocolate biscuit, Almond
biscuit and many others. Cookies are produced in varieties of favor, shape, design, and
customers able to mix and match their favorite cookies in one cookies jar or beautiful
cookies box that come in variety of designs as well for delivery. In details, central kitchen
will produced homemade cookies in order to send to kiosks or shops to attract and sell to
cookies lovers. Furthermore, cookies lovers can pre-order cookies through kiosks, or
online cookies store that we developed based on the favor or mix favor that they wanted,
and the design of the package that they required. Here, central kitchen will produce
cookies based on the orders and deliver to the customers.

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5.0 Marketing Plan

5.1 Market Analysis

Malaysia is in a highly profitable market in a rapid growing economy.

Malaysians are able to purchase anything ever think of by simply walk into the nearest
shopping complex. The sizes of shopping complex are also getting bigger and bigger, as
well as the number of the products. Thus it also creates more competitive edge for
companies to sell their products to consumers. Company need to make sure their product
can stand out from the crowd in order to catch consumer attention.

There are many avenues for purchasing the goods that one wants or needs. With
the evolution of the Internet, there are now even more ways to shop and get more for your
money. E- Commerce is the selling of goods and services via an electronic media, using
technology to facilitate rapid exchange of detailed information between buyers and
sellers (Lightner 2003)

The current demand in the market is high, as many cite in online comments a
willingness to pay a premium for a good product as well as willingness to put up with
what is occasional poor service or long lines to get their expected cookie. This cookie’s
market poses challenges in that some cookie stores have categorized themselves
as bakeries or snack bars rather than as cookie 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 from
competitor website, and official information sources included the Euromonitor database
and each company’s own website.

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5.2 Market Segmentation

5.2.1 Internet
Increase the internet users in Malaysia (see the figure 1). Online targeted
marketing offers almost immediate access to potential customers. Some of its benefits
include easily spreading the word about a new company or product, reaching a large
number of targeted consumers, and cost-effectiveness. Likewise, online marketing can
drive a lot of traffic to web sites, convert users almost instantly, and make it easy to get
real-time statistics.

The ability to quickly create interest in a company or product is one of the biggest
benefits of online targeted marketing. The use of social networks, e-mail marketing
campaigns, and online advertising makes it easy for the information to "go viral." An
interesting or funny advertisement can be sent electronically from one Internet user to the
next, creating a lot of interest and exposure that is free of charge.

Figure 1: Internet users in Malaysia

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5.3 Target Market

Nowadays teens have grown up with the internet, and their status as digital
natives places them in the avant-garde of internet and technology use. E-Marketer
estimates that by the end of 2011, 96% of US teens ages 12 to 17 will use the internet at
least monthly, significantly higher than the 61% penetration for the total Malaysia
population. According to e-Marketer the internet is not only fun, but is also indispensable
for a host of tasks such as communicating, learning and shopping.

According to Norazah Mohd Suki (2006) mentioned that the penetration of

Malaysians shopping online, i.e. people who bought or ordered goods and services online
in 2000, was 1% of the total adult population in Malaysia. This corresponded to 4% of
the Internet users in the country. Specifically, 24% of the total adult population in
Malaysia is Internet users in 2001. Males were the dominant Internet users, i.e. 28% of
the total population, while 21% were females. The proportion of adult population that
used Internet in the last 4 weeks was the highest amongst 15 to 20 years old (50%)

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followed by the 20 to 29 years olds (39%). The study found that 14% of Malaysian
Internet users planned to buy or order goods or services online by the end of 2001.

Our company will target on consumers who currently in their age between 16 to
50 years old. Markets define these group of people as Generation Z and Generation Y,
it’s because both of them are born when the personal computer starting to boom in year
1991. It’s easier for them to accept the concept of shopping online. With regards to the
trend of giving cookies as a gift online starting to grow, we foresee our products will
definitely take advantage of it. Furthermore, according to survey, it shows that the
growth of the Internet technology in Malaysia has influence the consumer online
purchase habits simultaneously, see the chart below.

Next, our company will target on public consumer as well by allocate cookies
kiosks in different shopping center (Mid Valley, Sunway) and hypermarket (Giant, Tesco
and Jusco Big) around the Klang Valley. We understand some consumers still prefer to
do shopping at the bricks and mortar shop, thus our cookies kiosks is the simple and
easiest way for us to reach our consumer in public. Figure 2 is showing estimation target
market for Sweetie’s cookies.

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Working Adult
25% 40% Student
10%
25% Housewife
Teenager

Figure 2: Target Market for Sweetie’s Cookies

5.4 Marketing Strategic

5.4.1 Product
Selling of the cookie is based on the online and offline methods. Consumers can
purchase the cookie through online in any time at anywhere. Our company will provide
variety cookies type and taste base on their favorite such as maple syrup, oatmeal, and
vanilla. Consumers can choose their favorite cookie in different appearances and cuisine.
For instance consumer can choose the cookie appearance such as round, square, oblong,
finger-shaped, or fancifully impressed with designs through online. Consumers can
purchase the cookies in any unit that they needed.

Packaging also important criteria to increase product brand image, so company

will provide different package to consumer base on their requirement. For example
company will provide the different type and cuisine to consumers in special occasion
such as valentine day, Chinese New Year, Christmas and others. These special packages
will include the well-chosen tastes that are preference for consumers. Furthermore, our
company will provide the warranty to the quality of cookies and responsibility in deliver
the product to the customer.

5.4.2 Price
This strategic is represented how to set the price to suit the market demand. Most
of the time, the price will be decided based on the ingredient of the cookies. Some
ingredients are imported from foreign country which does not have in Malaysia. So, it

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may increase the production costs. If the ingredient is general ingredient, this will not
cause the production much higher. If we set the price too high, some customers will
unable to buy our cookies especially for the middle-class and lower-class populations.
But, this does not means that low-income customers will accept the lower quality
products with lower price compare to other same products.

In addition, we also need to consider the price of substitute products and

competitor. Customers also have potential to purchase from others competitors. In this
case, this can affect our sales. We also need to cover the discount pricing that we give to
our customers who buy in large number. This is to avoid us from making loss.

5.4.3 Promotion
The objective of promotion for our cookies is to expose the products to the
consumer marketplace and increase brand awareness. Our businesses are focus on Klang
Valley (Allocation Kiosk) and E-commerce/ online store within Malaysia expect to
increase the reputation for our company through promotion. To promote the cookies, we
will have the promotion strategies to enhance the products image. For example, the
cookies sample will give to consumers at high-traffic locations such as hypermarket,
stores and others. Sampling promotion will implement to increase the awareness of
consumers and attract the consumers to buy the products. We will advertise the cookie
through the online marketing such as Google Adword and blog. These advertising tools
will effectively transfer our company message and cookie information to target market
and further expand the business market. The following are our 2 type of promotions:

1. Product promotion

 Google Adword – Google advertisement where can easily to deliver promotion

message to the right target market by searching keyword through search engine.
 Blog – Company will create blog for all type of cookies in our company; provide
ingredient information and healthy message. This will increase company’s
website SEO ranking in search engine.

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 Newspaper & magazine – Advertisement that contain the attractive photograph

of our products and our delivery location will be posted.
 Brochure & Flyer – Can be distributed to the public during weekend or holiday.
To increase the awareness of the public regarding our products.
2. Sales promotion

 Discount – customers who buy in a huge amount will be giving a special discount
and free of charge of transport fee. This to create a good relationship and loyalty.
 Customer loyalty program – member card will be given to those loyalty
customer and they can enjoy the privilege promotion from company.

5.4.4 Place/Location
Our company will running the business in a high volume of customer flow, we
choose Klang Valley. The business target market such as white collar is more concentrate
and important to our business because we know that Klang Valley is a place that many
people work so this is a good situation to run the business. Klang Valley is well known
by modern transportation because the connection of road is sufficient so that we can
delivery as fast as possible. The people in Klang Valley has more interest to test or buy a
new product available in market, in addition they also willing to spend for a product and
our product packaging is so attractive and the favorite for the product is meet the
customers’ needs and wants.

Suggested Location allocation Kiosk in Klang Valley

Location No. of Kiosk
Mid Valley 1
Aeon Bukit Bintang 1
Sungei Wang 1
Sunway Pyramid 1
The Mines/ Capital Mall 1
Tesco, Ampang 1
Paradigm Mall 1
One Utama Shopping 1

Due to the flow of people in these 8 locations are very high, we would suggest allocating
8 kiosks to the locations as indicated in the table above.

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6.0 Competitor Analysis

There are some main competitors’ analysis to understand the current status of the
business and the chance to gain competitive advantages.

The Famous Amos Chips more Ever Delicious Food

Chocolate Chip Cookie Industries
Product or  Differentiation  Quality products.  Product
services  Focus on quality of  Excellence of Service Differentiation
strategic product
Pricing  The price is the higher  Dynamic pricing  Normal price
strategic than other brand.  Based upon market
demand, market
segment, and product
availability.
Distribution  Have own shop in  Very good distribution  Distribution channel
Strategic most of the shopping channel and most of the is poor and only
center like Aeon. hypermarket, certain palce can get
supermarket, this product
convenience shop can
get this product
Promotion  Well promotion  Well promotion through  Less promotion
strategic through TV, radio, TV, radio, sale
sale promotion, and promotion, and internet
internet until well until well knows in
knows in Malaysia. Malaysia.
Strength and  Lead cookies brand in  Well-established  Business operation
weakness Malaysia. manufacturers. more through
 High rivalry between  Synergetic traditional way.
competitors.  High risk
Market share  Consider leader in the  This brand belong to  Market share is low,
cookies industry, consumer product, also due to the brand is
having a majority play a major role in this not famous.
share industry
E –commerce  Still no develop yet  Still no develop yet  Still no develop yet
Activity

Website  http://www.famousam  http://www.chipsmore.c  http://www.everdelic

os.com.my/aboutus_hi om.my/contact_us.php ious.com.my/main/
story.aspx

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7.0 SWOT Analysis

We are in a highly profitable market in a rapid growing economy. Thus it also

creates more competitive edge for companies to sell their products to consumers.
Company needs to make sure their product can stand out from the crowd in order to catch
consumer attention. Below are the summarized strengths, weaknesses, opportunities and
threats.

7.1 Strengths

People are more health conscious nowadays. According to previous research done
by Lockie (2002), it has identified interest in health as primary motive for consumer to
purchase organic food (Shaharudin, 2010). With our unique recipe and the high quality
flour we used to bake cookies, we foresee we are able to blend into the growing market
easily. To in line with our goal to bake healthier cookies, our cookies are bake with less
sugar and no food preservative, yet it taste delicious and fresh. We're confident that our
product will easily be accepted by the younger generations as well as older generation as
well.

Utilizing kiosks to reach our customers will be our fourth strength. Online
business is booming but it doesn’t mean the bricks and mortar shop is no longer a viable
move. There are several benefits of setting up kiosks at the selected shopping complexes.
First, we pay lesser rental compare to leasing a unit in a shopping complex. With kiosk,
we keep our renovation fees to the minimum. Second, it creates visibility to consumer.
Third, it allow consumer to purchase cookies direct from our kiosk. Meanwhile,
consumer can see our actual product instead of seeing it in a picture in their computer
screen.

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7.2 Weaknesses

We acknowledge our weakness as a medium-size company without a lot of

experience in this field. A lot of improvement area may require stabilizing our business.
On the flip side, our brand name which is new to the market too, it may need to take
some times and some marketing strategy in order to make our brand name famous.

Apart from this, we have fewer resources than others to run our business. All our
employees work at kiosk are part-time, we might face limited resource if person goes for
emergency leave or resign, especially during business start-up stage.

7.3 Opportunities

Americans spent more than $200 billion on online shopping in 2011 and the
volume predict to inflate to $327 billion on Internet stores by 2016, according to The
Wall Street Journal (Stu Woo, 2012).Our e-commerce website was design was purposely
design to provide consumer a comfortable online shopping experience and easy to use.
Furthermore, our e-commerce store will provide customer a greatest shopping experience
that they will not find in other e-commerce website possibly at the moment. Our e-
commerce store allow customer to choose their desire cookies, fill into cookies jar, pack
it nicely and help them to deliver it to someone as a gift. All the above can be done in few
simple steps.

Many people log on to their Facebook account using their mobile device at least
once in a day, thus it has reflect the number of monthly active mobile users, 600 million,
announced by Facebook in 2012 (Emil Protalinski, 2012). In order to fish in a bigger
market pool, we set up our cookies on Facebook fan’s page before our e-commerce exists.
The Facebook fan’s page will helps us to understand more our consumer needs, on the
other handto build a strong relationship with our customer. Besides that we also can keep
our fans up to date with our latest deal and products online. According to another survey
done by Deloitte, “Mobile devices’ influence on retail store sales has passed the rate at
which consumers purchase through their devices today” (Gary Belsky, 2012). Thus, it

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will definitely give us head-up for our business, possibly some orders, before we have our
e-commerce website and kiosk ready.

7.4 Threats

Cookies is not new in the market, we will have to compete with existing market
leader as well as their competitors. It also means there are tremendous varieties of
cookies in the market and we might have a hard time to create something stand out from
the crowd. Even we able to do that other competitors might take an aim at our niche,
possible duplicate it or produce something even better, and we will being push back to
where we started. On the flip side, there are many choices beside cookies as a gift,
consumer will simply switch to other product such as chocolate or cupcakes if cookies
not their choice.

Security often is the main concern for online shopper when they do their shopping
online, especially if your site is new in the cyberspace. They might think the site is not
reliable. Making the e-commerce site to looks reliable will be another threat for us as it
might need support from other company or websites, for instance the logo to show the
site is security guarantee. Without this not many people will simple disclose their bank
information or credit card information to the e-commerce website. Some people just
simply do not adapt to the online shopping culture due to they think it is not reliable.

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8.0 Operations Plan

The plan for operations includes an organization chart and job descriptions, a
summary of owner qualifications to run the business, and daily management plans. Also
included are details on the legal form of business, insurance, licenses, production, supply
chain, and trademarks.

8.1 Organizational Chart

The organizational chart for the first year is as follow

Sweetie's
Cookies

CFO COO CTO

(Jimmy Liew) (Hamzar) (Mei Ying)

Account Operation e-Commerce

Team Team Team
(2 staffs) (16 staffs) (2 staffs)

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8.2 Staffing Plan

The staffing plan for the first year is for the owners to do operation and
management planning. Jimmy Liew will be the Chief Financial Officer, Hamzar will be
the Chief Operation Officer and Mei Ying is Chief Technology Officer to consultant to
responsible for E-commerce process. Under COO, 16 staffs will be responsible to take
care of the 8 kiosk within Klang Valley. Another 4 staff is responsible for E-commerce
activities. Hamzar has extensive experience and training in customer service and has over
10 years of culinary experience and training and Mei Ying has extensive experiences in
E-commerce. Jimmy has over 10 year financial experiences and he is responsible to make
sure company costing will be control well.

8.3 Daily Operation

Sweetie’s Cookie main business divides into 2 divisions which is E-commerce

and Kiosk. For E-commerce it will be operate for 24/7; 8 Kiosks will be allocate in Super
Market, Hypermarket, and shopping center in Klang Valley, operation time will be
Monday to Sunday 10am – 10 am. In the sweetie’s cookie website we will provide
different patent, taste, and package. Customers can choose what they like and put in
shopping cart, after make the entire choice customer can pay through online and the
product will delivery based on the product choice by customer.

8.4 Business Operation

General liability insurance will cover things like slip and fall incidents. Product
liability insurance covers any illness or allergic reactions to the product. Property
insurance is to protect against any damage such as vandalism. Business Loss insurance is
used when a business is closed due to uncontrollable circumstances like a natural disaster.
An attorney will be retained to assist with all contracts, leases, and licenses. These will
include any business space leases, insurance contracts, supply contracts, health permits,
license agreements, and trademark applications.

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Other needs for the business will include research and development of new
products, management of the supply chain, and the establishment of production and
service procedures. We plan to start with secret recipe cookies, and then monitor their
success. More successful products will be analyzed for commonalities, and then new
products can be developed based on the known success factors. The supply chain will
have to be established very clearly. Ingredient and supply orders will be placed once
a week with major suppliers who will deliver to the premises once a week.

Culinary industry standard procedures, such as kitchen place, will be used

to ensure a clean and safe production environment that is in compliance with all health
regulations. Customer service will be critical, as word of mouth is an essential good
marketing tool for any start-up business.

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9.0 Financial Plan

It is a key to our financial success to grow Sweetie’s Cookie not just to sell
cookies, but as a company. We are looking for an investment of RM 1,000,000.00 seed
money with the hopes of eventually selling and established cookies bakery or cookies
distributors. This means we must always be reinvesting in the future of Sweetie’s Cookie.

Assumptions

The financial plan depends on important assumptions. Below are the key underlying
assumptions:

- We assume a slow-growth economy, without major recession.

- We assume there are no unforeseen changes in technology to make products
immediately obsolete.
- We assume access to equity capital and financing sufficient to maintain our
financial plan.

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9.1 Start-Up Expenses

Sweetie’s Cookie Discounted or Pre-

Owned

Fixed Capital RM
Furniture 5,000
Fixtures 15,000
Kitchen Equipment 30,000
Tenant Improvements 5,000
Promotion 20,000
Administration Expense 2,000
Computer Equip (6 computer) 18,000
Total Fixed Capital 113,000
Start-Up Expenses
Leased Space 3,000
Kitchen Supplier 15,000
Office Supplier 5,000
Kitchen dishes 5,000
Kitchen utensils 10,000
Printing 1,000
License & Permits 5,000
Total Start- up expenses 44,000

Total capital needed = RM 113,000 + RM 44,000 = RM 157,000

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9.2 Projected Cash Flow for first 12 Months

9.2.1 Projected Cash Flow for first 3 years

2017 2018 2019
RM RM RM
Cash Balance 0 1,245,000 2,993,000
Revenue 1,440,000 2,800,000 4,300,000

Less:
Cookies “Sold” 720,000 1,400,000 2,150,000
Cookies Made 780,000 1.450,000 2,210,000
Cost per cookie 0.25 0.24 0.23
COGS 195,000 348,000 508,300
Gross Profit/Loss 1,245,000 1,748,000 3,791,600

Balance of Cash 1,245,000 3,697,000 7,488,700

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9.3 Projected Income Statement for first 12 Months

Sweetie’s Cookies

Income Statement for the month:

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9.3.1 Projected for 3 years Income Statement

Income Statement for the year:

2017 2018 2019

RM RM RM
Sales from Internet 960,000 1,800,000 2,500,000
Sales from Kiosk 480,000 1,000,000 1,800,000
Total Sales 1,440,000 2,800,000 4,300,000
Less:
195,000 348,000 508,000
Cost of Goods Sold
Gross Profit / Loss 1,245,000 2,452,000 3,791,700

Less:
Marketing 132,000 250,000 350,000
Admin Expense 6,000 6,000 6,000
Website Expenses 12,000 12,000 12,000
Insurance 6,000 6,000 12,000
Packaging 12,000 18,000 20,000
Transport fees 12,000 18,000 20,000
Courier Service 6,000 10,000 15,000
Maintenance Fees 6,000 10,000 15,000
Rental (Central Kitc) 36,000 36,000 36,000
Rental of Kiosk 240,000 480,000 720,000
Wages and Salaries 468,000 500,000 550,000
Utilities Expense 6,000 6,000 6,000
Depreciation 6,000 6,000 6,000

Net Profit / Loss 297,000 1,174,000 2,263,700

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9.4 Projected Balance Sheet for 12 Months:

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9.4.1 Projected for 3 years Balance Sheet

2017 2018 2019
Asset RM RM RM

Current Asset

Cash 1,245,000 3,697,000 7,488,700

Inventory 195,000 348,000 508,300
Others Current Asset 0 0 0
Total Current Asset 1,440,000 4,045,000 7,997,000

Long term Assets

Long term Assets 0 0 0
Accumulated debt 0 0 0
Total Long-term Assets 0 0 0
Total Asset 1,440,000 4,045,000 7,997,000

Liabilities and Capital

Current Liabilities 0 0 0
Account payable 0 0 0
Current Borrowing 0 0 0
Other Current Liabilities 0 0 0

Long term Liabilities 0 0 0

Total Liabilities 0 0 0

Paid-in Capital 1 mil 1 mil 1 mil

Retained Earnings (157,000) (157,000) (157,000)
Earnings 25,750 25,750 1,500
Total Capital 1,440,000 4,045,000 7,997,000
Total Liabilities 0 0 0

Net Worth 1,440,000 4,045,000 7,997,000

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10.0 Timeline

10.1 Start Up Timeline

2015

Referring to the above timeline, we plan to engage suitable material suppliers

starting on June 2015. Of course only suppliers with good reputation will be selected and
contract will be prepared. After that, we will start searching for strategic location for our
central kitchen in August and we will start equip our kitchen at the same time as well, the
budget allocate for this is RM 150,000. In September our marketing and operation
department will busy searching for strategic location with reasonable rental to host our
kiosk in Klang Valley area. The operation team will start hiring part-time employees to
work at our kiosk as well. Meanwhile, development of our website will start on October
and the entire site will complete in end of November. We will soft-launch our product in
November to introduce our product to the market with some promotion. In December,
we will be ready for business and shipping our cookies to the market. Below is the detail
of our company startup timeline.

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Startup timeline Start Date End Date Budget PIC Department

(RM)

Set up central kitchen:

 Select location August November 150,000 Hamzar, Operation &

 Equip Kitchen facilities 2015 2015 Jimmy Finance

Build up company website:

 E-commerce platform
 Payment Gateway
October November 20,000 Mei Ying IT
2015 2015

Supply Chain Management:

 Select suitable material June 2015 October Contract Jimmy Finance

supplier 2015

Kiosk allocation:

 Select location September December Hamzar Marketing &

 Hire part time 2015 2015 Operation
50,000
 Kiosk management

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10.2 Three Years Timeline

 Build up central kitchen
 Allocate 8 kiosk in Klang
Valley
 Implement E-commerce
 Build up Supplier relationship
 Apply Halal Certificate
 Additional 8 kiosk
allocation in Klang
 Expand 8 kiosks to Johor
Valley
and Penang.
 Start to allocated another
 Expanding E-commerce
2 kiosk in Johor and
activity to Singapore and
Penang (test market)
Thailand.
 Develop a new product
like bakery cake

Year 2017 Year 2018 Year 2019

We plan to start our business with people, 8 permanent and 16 part-time, in your
first year operation. First we will lease a small factory for our central kitchen. The
central kitchen is how we maintain our food quality and it allow us to prepare our
products in order to meet the high volume of orders we obtain from all entire world. All
our cookies will be baked from our central kitchen and deliver it to our kiosks or ship
directly to our customer thru courier. For products shipping, the numbers of the deliver
days and the delivering fees will depend on client's shipping address location. For kiosks,
we are planning to lease eight kiosks on our first year of operations. We will purchase an
e-commerce online stall from web hosting company with customization to suit our
business needs. Furthermore, apply for Halal certificate as well to attract more Malays
customers.

In our second year of operation, we will increase the number of kiosk we have in
Klang Valley to 16. This is to supply more our cookies to the high demand market in that
area and also we plan to expand our business to Johor and Penang, allocate two kiosks to
each, just to test the market. We will introduce more product variety in this year as well
base on our one year observation on customer needs. We will possibly drop some our
existing less famous products as well.

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In our third year of operation, our brand will probably become famous and people
start to recognize our brand. We will expand our kiosks to Johor and Penang, this is the
state other than Kuala Lumpur where people are more willing to try new stuff. For e-
commerce we will start expand our coverage area to our neighbor country, it means we
will start deliver our cookies to Singapore and Thailand. In future, we will provide OEM
service to help small industries or bread shop to expand their product range. We will also
help them to customize the cookies according to their needs as well.

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11.0 References

Emil Protalinski, 600 million of Facebook’s 1 billion users are mobile, TheNextWeb.com,
04-Oct-2012, retrieved on 28-February-2013, from
http://thenextweb.com/facebook/2012/10/04/facebook-now-has-600-million-
monthly-active-mobile-users/

Gary Belsky, Smartphone Shoppers Actually Increase In-Store Sales, 03-July-2013, Time
Business & Money, retrieved on 28- February -2013, from
http://business.time.com/2012/07/03/study-smartphone-shoppers-actually-
increase-in-store-sales/

Lightner, Nancy J.2003.”What users want in E-Commerce Design: Effects of Age,

Education and Income.”Ergonomics 46(3):153-168.

Mohd Rizaimy Shaharudin, “Factors Affecting Purchase Intention of Organic Food in

Malaysia’s Kedah State, 02-June-2010, ISSN 1712-8358, retrieved on 28-
February-2013.

Norazah Mohd Suki. 2001. Malaysian Internet Users’ Motivation and Concerns for
Online Shopping. Malaysian Journal of Library & Information Science. Vol. 6,
No. 2.

Stu Woo, Online-Retail Spending at $200 Billion Annually and Growing, 27-Feb-2012,
The Wall Street Journal, retrieved on 28-February-2013, from
http://blogs.wsj.com/digits/2012/02/27/online-retail-spending-at-200-billion-
annually-and-growing/

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