Executive summary

Smoothie Bubble Pop offers popsicle and fruit smoothie which are made up of different kinds of
fruits. There are five choices of fruits such as watermelon, honeydew, apple, banana and mango. The
products would be made using fresh fruits and are served cold. These products are able to satisfy the
appetite of the customers. There would be no artificial flavouring and artificial colouring used in the
making of popsicle and fruit smoothie. Moreover, the price of the products is a reasonable and
affordable one. The target market of the business is the students of University Malaysia Sarawak
(UNIMAS). The stall would be located at the College Cempaka’s ‘dataran’ and open at 2.00 p.m. until
6.00 p.m. The business is registered under the form of Limited Liability Partnership (LLP). The start-
up funds amounting to RM10, 000 for this business are provided by the owners and the remaining
capital would be obtained through loans from the bank. The objectives of this business plan are to
attract team members and attract investors. Besides, this business plan aims to clarify the directions of
the business. There is high probability that the business would success based on the survey conducted
previously. The business is small at the initial start-up of the business. However, the business has the
potential to grow in the next few years since it is a new venture.
Chapter 1: Business Description

1.1 Background of Business

Our business name is Smoothie Bubble Pop. Our business location is around UNIMAS where we
focus more on our business at Cempaka College because this area is the main route between college
and faculty for UNIMAS students. The main products of this business are smoothie and popsicle that
made from healthy and fresh fruits. Our nature of business is more to private industry of Food and
Beverages. For the customer services, we will apply the hygienic and best quality services. Because
of our main location of business is in UNIMAS, our primary or target customer will be the UNIMAS
students because contribute the most on the number of population in UNIMAS. The vision of our
business is to help create the best tasting smoothie and popsicle in UNIMAS as well as become the top
store with the healthy desserts preferred for students. Our mission is to help create a different and
healthy smoothie and popsicle that would leave customers satisfied and looking forward for more, to
provide the quality product to the customer and give the excellent services and provide the customer
with selections of tasty, refreshing drinks and unique ice cream flavors with fresh fruits. For the short-
term goals, we want to provide healthy smoothie and popsicle for the students with the fresh fruits and
more new flavors and also improve our services toward the customers.

1.2 Background of Owners

This business is conducted by 5 UNIMAS students from Faculty of Economic and Business. 2
students are from Accounting course that is Muhammad Haikal Izzuddin Bin Mohammad Azhar and
Tiang Ying Ting and the rest is from Finance course that is Nur Asyikin Bt Jailani, Nur Adlina Bt
Razali and Nur Zaherah Adilah Anna Bt Abdullah. In this business, all of us contribute in term of ideas
about the products and business planning. Each one of us have our own skills and experience to conduct
this business in term of making the smoothie and popsicle and also do the marketing. For example,
before enter UNIMAS, Asyikin, Haikal and Adlina have done a similar business with our business.
So, they will use her experiences before this to manage and contribute more in this business. Other
than that, Zaherah and Tiang also have an experience work at a restaurant.

1.3 Factors in Selecting the Proposed Business

We came out with this idea because in UNIMAS, it is so difficult for students to find fresh fruits
and also want to make those students that do not like to eat fruit to take it. As we know, people
nowadays especially students like to eat sweet things. So it gives us this idea to encourage them to eat
fruit but in the different ways which is with this two products, smoothie and popsicle that will be
manufactured with fresh fruits. This is not only just want to make the students want to buy our products
but also provide them the smoothie and popsicle that mix with the fresh fruits that good for their health.
Chapter 2: Market Analysis and Marketing Plan

2.1 Product/Service

There are two types of products that will be sold in our stall namely popsicle and fruit smoothie.
Both of these products will be manufactured using fruits. The fruits will be bought from the supplier
and selected based on their freshness. The selling price of our products is set at a reasonable and
affordable price as we consider the budget constraint that is being faced by students in UNIMAS.
There would be a wide variety of choices of fruits that our customers can select. This is to ensure that
our customers do not feel fed up by the same flavour every day. Since our products are made up of
fruits, they would provide nutritional value to those who consume them. Both the products are healthy.
To those who do not like to eat fruits, these two products can definitely help to motivate them to eat
fruits. We encourage people to eat fruits by using the fruits to produce products in the form of drink
and dessert that are loved by people. Besides, there will be no artificial flavouring and colouring used
in the whole process of making popsicle and fruit smoothie. In addition, both the products would be
served cold. This can help our customers to feel cool down and refreshed especially when they are
being sweaty during hot days. There will also be promotions being held throughout the operational
years.

Figure 2.1.1: Popsicle and fruit smoothies

2.2 Industry and competitor analysis

The industry that our business is involved in is food and beverages. Our business is a small
business and is still in the process of growing. The opportunity of our business is there is no stall in
UNIMAS yet that sell smoothie based on fruits. The popsicle that we sell is also made up from fruits.
There is great potential for this business to grow because it is a new venture that sells popsicle and
smoothie with fruit-flavoured. The main threat of our business is there will be a reduction of sales
whenever there are rainy days. Besides, we also have to compete with our rivals to attract the heart of
our customers.

There are three main competitors in our business namely Pohonmas Cafe, kiosk at Faculty of
Economics and Business (FEB) and Student Pavilion. Pohonmas Cafe is our biggest rival because the
location at which we set up our stall is quite near to Pohonmas Cafe. Their popsicle is sold at a lower
price. Although we sell our popsicle at a higher price, our popsicle is considered to have more
nutritional value than theirs. The owner of Pohonmas Cafe has experience of operating the business
for two years and the size of the business is big. The weakness of Pohonmas Cafe is there is an only
small range of variety of the flavour of the popsicle. Another weakness is there is none fruit-flavoured
drink being sold.

Our next rival is the stalls in Student Pavilion sell similar products which are popsicle and juice
drink. They sell popsicle at the price of RM1.00 and RM2.00 whereas fruit smoothie at the price of
RM2.50 and RM3.50. They are superior in terms of the experience in operating the business and the
size of the business. They have more experience and bigger size of business. They also have
weaknesses such as the price of the products is expensive and there is usage of artificial flavouring in
the making of drinks.

Besides, the kiosk at Faculty of Economics and Business (FEB) is also one of our opponent.
They sell drinks that are quite similar to us. The difference is they are selling chocolate-flavoured
drinks. They sell the drinks at almost same price as us which is in the range of RM4.00 to RM5.00.
Their biggest threat to us is in such a way that they are able to captivate the heart of students as they
know the students love to eat chocolate. The strength of the business in kiosk at FEB is the drinks are
sold at reasonable price. Despite of the strength, there are also several weaknesses of the business such
as the owner has little experience in operating the business, the size of the business is small and there
is limited choices of drinks.

The summary of the strengths of our competitors is shown in the table in the next page. Their
weaknesses is also being summarised in the same table.
 Table 2.2.1: Strengths and weaknesses of competitors

Name of Strengths Weaknesses

Competitors

Pohonmas Cafe - Has experience of operating - Small range of variety of

the business for two years. the flavour of popsicle.
- The size of business is big. - None fruit-flavoured
- Sell their products at drink.
reasonable price. - Low nutritional value.
Student Pavilion - Has experience of operating - Usage of artificial
the business for more than two flavouring in the making
years. of drinks.
- The size of business is big.
- Reasonable price.

Kiosk at FEB - The price of the product is - Little experience of

reasonable. operating the business
(seven months).
- The size of business is
small.
- Limited choices of
drinks.

Based on the strengths and weaknesses of our competitors, we estimated our sales forecast. During
the first month, our sales would not be high assuming that there are still many people do not know
about the existence of the business. The sales would increase in the second month as we do promotion
and hand out flyers to the students as well as spread the information regarding our business via social
media. During the period of mid-semester break, there would be a reduction in sales as some students
would return to their home. The same thing would happen during the fasting season which falls on the
month of May as there will be none Malays customers at that period. During the semester break on
July and August, there would be no sales because the stall is closed for that period. For the second and
third year of our business, we estimated that our sales would increase gradually. The sales forecast for
the first year until the third year of our business is summarised in the table shown in the next page.
Table 2.2.2: Sales forecast for the first year until the third year of Fruity Bubble Pop

Year Month Sales collection (RM)

1 September 18,720.00

October 19,656.00

November 20,639.00

December 21,671.00

January 16,253.00

February 8,127.00

March 22,755.00

April 23,893.00

May 16,725.00

June 8,362.00

July -

August -

Total for year 1 176,801.00

2 Total for year 2 166,423.20

3 Total for year 3 199,708.00

2.3 Target market

This business targets mainly on the students of UNIMAS. This is due to students contribute the
most to the number of population in UNIMAS. Students are now pickier in term of the tastes of food
and drinks. They are demanding fresh and delicious food and drinks. Thus, the target market of our
business are students in UNIMAS. We aim to sell our products to those who aged 18 years old and
above. To be more specific, female students are considered to be our main customers. It is because
most of the females love to eat sweet things. They are also more health-conscious when compared to
the male. They would like to consume healthy food and drinks in their daily diet. Our products which
are made up of fresh fruits is one of the characteristics that can attract female students to buy. Besides,
during hot sunny day, we also target student who are walking around the UNIMAS that are thirsty and
exhausted from walks under the sun. All of our target market will be considered as first time buyer.
According to the survey that had been done previously, our target market are willing to buy our
products.

The market size is estimated to be 16,000 students. We expected the market size for our
business is to be around 7,200 people. At the start-up of the business in the first year, it is estimated
that the market share of our business is able to achieve 20% out of the total market size. It is because
we assume that the business is not widely known to all the students in UNIMAS initially. Our market
share would be lesser than the market share of Pohonmas Cafe and Student Pavilion because the size
of their business is big and they are more experienced than us. However, we assumed our market share
is more than the market share at the kiosk of Faculty of Economics and Business (FEB). It is because
we consider that we are able to compete with the kiosk at FEB and gain more market share since we
have more variety of choices. It is expected that the market share would continue to grow after the next
few years. The market share before and after the entry of Fruity Bubble Pop are summarised in tables
below.

Table 2.3.1: Market share before the entry of Fruity Bubble Pop

Name of competitors Percentage in market (%)

Pohonmas Cafe 40

Student Pavilion 35

Kiosk at FEB 25

Total 100
Table 2.3.2: Market share after the entry of Fruity Bubble Pop

Name of competitors Percentage in market (%)

Pohonmas Cafe 35

Student Pavilion 30

Kiosk at FEB 15

Fruity Bubble Pop 20

Total 100
2.4 Price

The price of popsicle is RM3.00 whereas the selling price of fruit smoothie is RM5.00. We set the
selling price of our products in such a way that the price is affordable in our customers’ perspectives
and they are willing and able to pay for them. Besides, we also set the price after considering that the
selling price is able to provide us with the profit margin. We use three strategies in the steps of the
determining the selling price of our products namely cost-based pricing, value-based pricing and
competitor-based pricing. Cost-based pricing is used because we want to ensure that the selling price
of the products exceeds the cost of production per unit of the products. The value-based pricing is also
used as a strategy in fixing the price because we assumed our consumers are sensitive to the price.
Thus, we would take into consideration their intrinsic value evaluation and perception. We would set
the price that is affordable and acceptable by our consumers. The price is also fixed after comparing it
with our competitors. For example, the selling price of the popsicle sold in Pohonmas Cafe is between
RM1.00 to RM1.50. The price of fruit smoothie is fixed based on our competitors’ price. In UNIMAS,
there is no stall that sells this kind of drink. However, we consider kiosk at Faculty of Economics and
Business to be our rival as they sell drinks similar to us. They sell drinks with the chocolate flavour at
a price ranged RM4.00 to RM5.00.

Table 2.4.1: Price of products

Products Selling price

Popsicle RM3.00

Fruit smoothie RM5.00

2.5 Place

Customers can buy the fruit smoothie and popsicle at the stall that will be set up at the College
Cempaka’s ‘dataran’. The location is chosen to be there due to its strategic location. Students would
be passing by the stall whenever they are going to go back to their own college especially those who
are living at College Cempaka itself, College Bunga Raya and College Tun Ahmad Zaidi. Those who
have just finished class and wish to have something cool and refreshing drinks or dessert to eat can
easily buy it. The stall can also be visible to other people from a distance away and is not located in a
secluded area. The stall would be open on weekdays and Saturday and is closed on Sunday and during
public holiday as well as semester break. However, during the mid-semester break, we would open our
stall since there are still many students that do not go back to their home. The operating hours of the
stall is from 10.00 a.m. until 6.00 p.m. The business would be opened from 10.00 a.m. because many
students would finish their classes or start to walk to their faculty from their own college. It is also
opened during afternoon time because in the afternoon the day is usually hotter than in the morning.
The hot day would encourage more people to buy our products. We use the method of direct selling
for our distribution channel. People would come to our stall and buy directly from us. We also take
advantage of the social media. Customers can make orders from us using the social media and come
and take the products at the appointed time.
2.6 Promotion

Promotion refers to how we as the sellers communicate with our customers. In this business, we
are using various kind of promotional strategies in order to maintain old customers and attract new
customers. This includes the use of sales promotion, advertising, word of mouth and social media
marketing. In terms of sales promotion, we would distribute one free popsicle to the customer that
have bought ten items in our stall. To identify which customer has bought ten items, we would inform
our customers to keep the stick of the popsicle or keep the sticker with our business logo that is attached
on the cup of fruit smoothie. By showing us the stick of the popsicle or the sticker, the customer can
claim one popsicle from our stall. Besides, we use advertising method in order to inform people
regarding our products and our business. We would pass flyers all around in UNIMAS area so that
people will know about the existence of our business. With the technology today, we spread
information of our products in social media such as Facebook, Whatsapp and Wechat. We also depend
on word of mouth as part of our promotional strategies. In order to utilize this method, we have to
make sure that our customers are satisfied with our service and products. We would also maintain good
relationship with our customers to maintain the loyalty of our regular customers. We would ensure the
quality of our products and service is at the top level. The quality of the service refers to how we treat
our customers.
Chapter 3: Management Plan

3.1 Organizational Structure

The form of business entity we choose is Limited Liability Partnership. It can be formed by a
minimum of 2 persons up to unlimited number of partners. It combines characteristic of conventional
partnership and private limited company. It has legal personality (separate legal entity) from partner,
like private limited company and it has perpetual succession. There is no reporting requirement while
offers benefits of a private limited company. The LLP concept supports start-ups, small and medium
enterprise, joint ventures and venture capitals to grow without having to worry about personal
liabilities, personal assets and strict compliance requirements.

The reasons we choose this form because there is no limit on the number of owners that can be
involved with the business. The registration fee of limited liability partnership is inexpensive compared
to private limited company which is RM500. Compliance requirements are simpler than a private
limited company, where accounts need not be audited but need to be maintained in the business
premise only. It has separate legal identity and can own property, enter into contracts, sue or be sued
in its own name. If any changes occur for example resignation or death of partners will not affect its
existence, rights or liabilities because it has perpetual succession. The form is flexible because each
partner has the ability to decide the amount they want to contribute and the number of partners are to
be in the business. The tax benefits are each individual partner must file a variety of different tax forms
regarding the business. In case of liability, all of the risks of the business are spread out among partners.
The partners will not be held personally liable for any business debts caused by wrongful acts of
another partner.

Organizational Structure

General
Manager

Marketing Operation Financial

Executive Officer Officer

Chart 3.1.1: Organizational Structure

The organizational chart presents the structure of our business entity. It shows how the line of authority
and responsibility flow within the business. It also facilitates management to divide the jobs by
categories and outline the responsibilities of each employee. An organizational structure can be
visualized through an organizational chart. This is a diagram that depicts the hierarchy and chain of
command of personnel in organization at a particular point in time.

Man Power Planning

This section lists the personnel in the administration of the entity. Following table illustrates the
Administration staff position for our business.

Table 3.1.1 : Position and Number of Staff

Position Number Of Staff

General Manager 1

Marketing Executive 1

Operation Officer 1

Financial Officer 2

Total 5
Schedule of task and responsibilities

The schedule of task and responsibilities has to be constructed for every post that is available in the
organization.

Table 3.1.2 : Schedule of tasks and responsibilities

Position Task and Responsibilities

General Manager (Haikal) -To set policies, operations, creating and

maintaining budgets

-To coordinate local management to

evaluate company performance and
efficiency

-To plan, implement and control overall

management of business

-To plan and monitor strategic progress

of business

-To be accountable for overall

performance of business

Marketing Executive (Tiang) -To oversee and develop marketing

campaigns, conduct research and
analysing data to identify and define
audience

-To plan, implement and control sales

and marketing part of business

-To compile and distributing financial

and statistical information

Financial Officer (Adlina) (Asyikin) -To provide financial projections and

accounting services, prepare growth plans
and direct staff
 -To develop finance organizational
strategies by contributing financial and
accounting information, analysis and
recommendations to strategic thinking
and direction, establishing functional
objectives in line with organizational
objectives

-To establish finance operational

strategies by evaluating trends,
establishing critical measurements,
determining production, productivity,
quality and customer-service strategies,
designing systems, accumulating
resources, resolving problems and
implementing change

-To develop financial strategies by

forecasting capital, facilities and staff
requirements, identify monetary
resources and developing action plans

Operation Officer (Zaherah) -To ensure all daily operations run

smoothly and make a report to manager
about weekly operations

-To track and maintain budgets of

operational costs

-To coordinate purchases of raw materials

and supplies

-To monitor product inventory and

maintaining positive client and vendor
relationships
 -To develop and implement human
resources practices

Schedule of remuneration

The Administrative Plan has to include the remuneration schedule that lists the salary and wages
structure for each position. It includes the contribution that our company has to allocate to different
provident funds like Employees Provident Fund (EPF) for at least 12% and The Social Security
Organisation (SOCSO) for 2% to ensure that employees receive compensation in situations of work-
related accidents or illness. Following table illustrates the remuneration plan for Adminstration staff.

Table 3.1.3: Remuneration for Administration staff

Position No. Monthly EPF SOCSO Amount

of Salary (RM) Contributio (2%)(RM)
(RM)
Staff n
(12%)(RM)

General Manager 1 500 55 10 435

Marketing 1 500 55 10 435

Executive

Operation Officer 1 500 55 10 435

Financial Officer 2 1000 110 20 870

Total 5 2500 275 50 2175

List of Office Equipment

A list of office furniture and equipment is necessary to facilitate layout planning and budget
considerations.

Table 3.1.4: List of Furniture, Fitting and Equipment

Item Quantity Price / Unit (RM) Total Cost (RM)

Table 1 50 50
 Total 50

Administration Budget

In order to facilitate the overall financial planning of the business, all costs under every section of the
business plan need to be summarized under the relevant section. The cost structure of a business can
be divided into three main categories: Fixed Assets, Monthly Expenses and Other Expenses.

Table 3.1.5: Administrative Budget

Item Fixed Assets Monthly Expenses Other Expenses

Expenses (RM) (RM) (RM)

Furniture, Fitting 50
and Equipment

Salaries 2500

Business 500
Registration

Stationery 30

Total 50 2500 530

3.2 Operational Planning

Process Planning

This planning will involve identifying the step-by-step processes from beginning to end make the
product or to provide the services. Sometimes, there are several alternative processes available and
entrepreneur will have to choose one that most suitable and cost effective to his operation.

Process Flow Chart

The sequences of activities can be shown through a process flow chart. This is a schematic
representation of the step-by-step sequence that takes place in a production process or service and it
uses five universally recognised symbols as illustrated in Table 3.2.1.

Table 3.2.1: Symbol used in schematic representation

Symbol Type of Activity Description

Operation Activities that modify,

transform or give value to
input

Transportation Transport activity occurs

when materials are
transported from one point
to another

Inspection Activity that measures

standard of the in-process
material and finished
products

Delay The symbol is used when

in-process materials or
finished products is
restrained in a location
waiting

Storage The symbol is used when

in-process materials and
 finished products ate
storage area

To prepare a process flow chart, an entrepreneur will first identify on the operational activities
required for the production of the product or the delivering the services. Then entrepreneur arranges
these activities according to sequence and proceed to draw the process flow chart. Figure 3.8 below
illustrated the process flow chart of our products.

Obtaining Raw Materials Process

Figure 3.2.1: Obtaining Raw Material Process

Choose and inspecting raw material that we want to buy

Buy and incurred transaction to the supplier for raw

materials

Supplier delivers the input

Store the fruit stocks and other inputs

Manage and measure the inputs that needed to

process at the shop

Preparing Popsicle Process

Figure 3.2.2: Preparing Popsicle Process

Take out fruits stocks from refrigerator

Slice its into pieces and blend its to

make juice

Place and arrange the pieces inside the

popsicle molds

Pour the fruit juice inside molds

And put the popsicle sticks

Freeze for 2 hours

Store inside the refrigerator

Wait for the shop opens

and customer come to buy

Preparing Smoothies Process

Figure 3.2.3: Preparing Smoothies Process

Receive order from customer

Take the inputs out from store

Slice fruits and blend with ice and water

Pour it in the plastic cup put the bubble inside

Bring smoothies to the counter

Selling Process
Figure 3.2.4: Selling Process

Customers come and we serve the customers

We explain and offered the products to them

Interested to buy popsicle Not interested to buy Interested to buy

smoothies

Customers make decision

Customer make decision and

Customer purchase the popsicle order it

Bring the smoothies to the counter

Customer leave the shop Customer purchase

bubble tea
Operational Location Planning

The operational location planning is at our shop at Dataran Cempaka. The reasons why we
choose there are because the place is near with our customers’ home. Everyday the students from
three colleges are passing by the place to go to the faculty. The productions process and sells
performance will become faster. Moreover, the infrastructure facilities that are near with the location
are Laman Ilmu, Unimas Stadium, car parks, Panggung Gemilang and Dataran Cempaka itself. It is a
strategic place to set up our business because we are surrounded by those facilities. Furthermore, we
also considered to operate there because the rental cost for a month is cheap which is RM50 a month.

Layout Planning

Counter Office

Smoothies Workspace Store

Fruity Popsicle Workspace

This Figure 3.2.5 layout is designed based on the production process. Machines and equipment that
perform similar functions are grouped together
Material Requirement Planning

This section list the raw materials or inventory needed in the operational process which includes
the quantity required and price.

Table 3.2.2 show the materials required to produce Fruity Popsicle for 12 sticks

Ingredients Amount Required Price Per Unit (RM) Total Purchase

(RM)

Mango 0.8 kg 5.40 4.30

Watermelon 1 kg 1.50 1.50

Banana 1.2 kg 1 1.20

Apple 5 apples 1 5

Honeydew 1 kg 3 3

Stick 12 sticks 0.05 0.60

Total 15.60

The cost of materials for a unit of fruity popsicle is: = RM15.60 / 12 = RM1.30

Raw Material Requirement = Cost of Materials X Total Number of Fruity Popsicle to

Produce Monthly

=RM 1.30 X 2340

= RM3042
 Table 3.2.3 shows the materials required to produce Smoothies for 8 plastic cups

Ingredients Amount Required Price Per Unit (RM) Total Purchase

(RM)

Mango 1.2 kg 5.40 4.30

Watermelon 1 kg 1.50 1.50

Banana 1.5 kg 1 1.50

Apple 10 1 10

Honeydew 2 kg 3 6

Ice 1/3 of 3kg plastic 3 1

bag

Bubble 0.5 kg 0.20 1

Water 1 liter 0.10 0.10

Plastic cup 8 cups 0.12 0.96

Straw 8 straws 0.02 0.16

Sticker 8 stickers 0.5 4

Total 30.52

The cost of materials of a unit of smoothies is: = RM30.52 / 8 = RM 3.80

Raw Material requirement = Cost of Materials X Total Number of Smoothies to Produce Monthly

=RM3.80 X 2340

=RM8892

The supplier is Pak Atan fruit vendor because he has the best quality of fruits. The price and discount
offered also reasonable. The purchase method of the fruits is by cash. The delivery of materials after
order is fast. The cost for delivery a month is RM20.
Operation Costs and Cost Per Unit

It is essential for an entrepreneur to determine the total operational cost to enable to calculate the cost
per unit of the the goods produced.

Operations costs = Direct material cost + Direct labour cost + Overhead

= RM11954 + RM1500 + RM125.80

=RM13579.80

Using the total operations cost above, cost per unit can be calculated

Cost per unit = Total Operations Cost (RM)

Total Number of Output (Units)

= RM13579.80

4680

= RM2.90
List of Remuneration (Direct Labor Cost)

Following table illustrates the remuneration plan for Operation staff

Table 3.2.4: Remuneration for Operation Staff

Position Number of Monthly EPF SOCSO Amount

staff salary (RM) contribution (2%) (RM) (RM)
(12%) (RM)

Operation 1 300 33 6 261

Manager

Cashier 1 300 33 6 261

Production 3 900 99 18 783

Team

TOTAL 5 1500 165 30 1305

List of Machinery and Equipment

Following table illustrates the machine and equipment for operation

Table 3.2.5: List of Machinery and Equipment

Items Quantity Price / Unit (RM) Total Cost (RM)

Freezer 1 unit 497 497

Booth 1 unit 150 150

Table 1 unit 50 50

Chair 5 unit 32 160

Plastic Container 5 unit 19.04 95.20

Cleaver 1 unit 23 23

Knife 5 unit 25 125

TOTAL 1100.20
Operations Budget

Following table illustrates the operations budget for a month.

Table 3.2.6: List of Operations Budget

Items Fixed Assets Monthly Expenses Other Expenses

Expenses (RM) (RM) (RM)

Machine and 1100.20

Equipment

Direct Materials
Cost:

Raw Materials
11934
Carriage Inwards
20

Direct Labour

Cost: Remuneration 1500

Overhead Cost:

Utilities 70

Depreciation 5.80

Rental 50

Total 1100.20 13579.80 0

Chapter 4 : Financial Plan

4.1 Capital Requirement and Source of Capital

Table 4.1.1: Project Implementation Cost

Step 1: Project Implementation Cost Sources of Fund

Loan Own
RM (RM) Money
(RM)
Assets (Equipment) 1100.2 800 300.2
Working capital for one month 16154.8 7000 9154.8
Registeration and one-time promotion
cost 545 - 545
TOTAL 17800 7800 10000

4.2 Loan Amortization

4.2.1: Loan Amortization

Period Principle (RM) Interest (RM) Loan Balance (RM)

September 650 156 7150
October 650 156 6500
November 650 156 5850
December 650 156 5200
January 650 156 4550
February 650 156 3900
March 650 156 3250
April 650 156 2600
May 650 156 1950
June 650 156 1300
July 650 156 650
August 650 156 0
4.3 Depreciation of Asset

Depreciation of refrigerator:

Table 4.3.1: Depreciation of refrigerator

Period Depreciation per year Cumulative depreciation Book Value at the end of
(year) (RM) year (RM) the year (RM)
1 49.7 49.7 447.3
2 49.7 99.4 397.6
3 49.7 149.1 347.9
4 49.7 198.8 298.2

Depreciation of booth:

Table 4.3.2: Depreciation of booth

Period Depreciation per year Cumulative depreciation Book Value at the end of
(year) (RM) year (RM) the year (RM)
1 12 12 138
2 12 24 126
3 12 36 114
4 12 48 102

Depreciation of table:

Table 4.3.3: Depreciation of table

Period Depreciation per year Cumulative depreciation Book Value at the end of
(year) (RM) year (RM) the year (RM)
1 8 8 92
2 8 16 84
3 8 24 76
4 8 32 68
4.5 Projected Income Statement

Table 4.5.1: Projected Income Statement for the first year

Projected income statement per year

RM
Sale 138686

Cost of goods sold 84128

Gross profit 54558

Deduct:
Salary 32615
Registration and promotion 1205
Interest 1872

Depreciation 69.6

Net profit 18796.4