FACULTY OF APPLIED SCIENCE
DIPLOMA IN SCIENCE (AS120)
AS1205H
FUNDAMENTALS OF ENTREPRENUERSHIP
ENT 300
PREPARED FOR:
EN. MOHAMAD KAMIL ARIFF BIN DATO’ KHALID
PREPARED BY:
COMPANY NAME: FaSTME JEANS BAG
NAATASYA BINTI MAT PUAT
(2017644826)
MUNIRAH AINI BINTI AZHAR
(2017635262)
FATIN SYAHIRA BINTI AHMAD
(2017441606)
FATHIN NAZREEN BINTI NORDIN
(2017425154)
ERINA SURAYA BINTI JAMAL ABD NASIR
(2017403972)
1
LETTER OF SUBMISSION
2
LETTER OF SUBMISSION
Diploma in Science (AS120)
Faculty of Applied Science
Universiti Teknologi MARA Pahang Jengka Campus
26400 Jengka, Pahang.
21st February 2019
Mohamad Kamil Ariff bin Dato’ Khalid
Senior Lecturer ENT300
Faculty of Business Management
Universiti Teknologi MARA Campus Jengka
26400 Jengka, Pahang.
Sir,
Submission of the Business Plan (ENT 300)
Attach is the business plan title “FaSTME JEANS BAG” to fulfil the requirements as
needed as university requirements.
Below is the list of the group members that involved in completing this business plan:
NAATASYA BINTI MAT PUAT
(2017644826)
MUNIRAH AINI BINTI AZHAR
(2017635262)
FATIN SYAHIRA BINTI AHMAD
(2017441606)
FATHIN NAZREEN BINTI NORDIN
(2017425154)
ERINA SURAYA BINTI JAMAL ABD NASIR
(2017403972)
Thank you,
Yours sincerely,
………………………
Erina Suraya Binti Jamal Abd Nasir
General Manager
3
FaSTME JEANS BAG
No. 48 Jalan BDJS 5,
Blok Dagangan Jengka,
Jalan sejahtera, Bandar Jengka 26400,
Bandar Tun Razak,
Pahang
Date: 12 August 2019
The Manager
Maybank Berhad
A-73, Jalan Ahmad Shah,
28000 Temerloh, Pahang
Dear sir,
Bank Loan Request for RM34,800
Regarding to the matter above, I on the behalf of FaSTME Jeans Bag would like to apply
loan with the amount of RM34,800. The purpose of this loan is to defray our business
expenses and also as additional capital for our business that will be run soon.
This business is guaranteed to earn high profit and demand from customer because our
shop is the only jeans bag shop in the area of Bandar Pusat Jengka. This will make our
business less competitors and attract more customers. We also provide a better product
to our customers where our product is slightly different from what is offered in the market.
To meet the growing demand for our speciality, I need to buy few sewing machines, bag
shelf, few racks and another furniture for my office and store. These items are very
important and needed by us to start our business.
We hope that our application will get better consideration from your side. We always
ready to serve any information that you need for next action about the operation beside
that we attach our business plan for your attention and next action.
4
If
you
have
any
questions,
I
can
be
reached
at
013-9931533
or
at
erinasuraya07@gmail.com Thank you for all your cooperation.
Sincerely,
__________
(Erina Suraya Binti Jamal Abd Nasir)
General Manager
5
ACKNOWLEDGEMENT
6
ACKNOWLEDGEMENT
Assalamualaikum. First and foremost, we are thankful to Allah S.W.T because give our
team the strength to finish the task. Praise be to Allah, each of our members group did
their parts and give their best to complete this assignment as well as show a great
teamwork. There are a few individuals that help us and give guidance during the period
to complete this task. A big love and thank you we dedicated to our parents because they
give their support and encouragement non-stop to us. Besides, a great appreciation also
we give to Sir Mohamad Kamil Ariff bin Dato’ Khalid, our Fundamental of
Entrepreneurship’s lecturer as he showed and teach us how to complete this assignment.
Without him, we may do many mistakes and could not finish our assignment correctly.
This business plan helps us on encouraging our effort on becoming educative and
succeed in business field. We hope we can be a successful entrepreneur one day with
the knowledge that we already gain. Thank you.
7
TABLE OF CONTENTS
8
TABLE OF CONTENTS
LETTER OF SUBMISSION
ACKNOWLEDGEMENT
TABLE OF CONTENT
EXECUTIVE SUMMARY
PAGE
1
INTRODUCTION
1.1 Name of Business Partners
1.2 Company’s Name
1.3 Nature of Business
1.4 Industry profile
1.5 Location of the Business
1.6 Date of Business Commencement
1.7 Factors in Selecting the Proposed Business
1.8 Future Prospects of the Business
2
2
2
2
3
3
3
4
4
2
PURPOSE
2.0 Introduction
2.1 Purpose for preparing business plan
6
6
COMPANY’S BACKGROUND
3.1 Background
3.2 Equity contribution
8
8
3
4
BACKGROUND OF PARTNERSHIPS
5
LOCATION OF BUSINESS
5.1. Physical location of the project
5.2. Building
5.3. Basic amenities
5.1. Road Map
6
7
MARKETING PLAN
6.0 Introduction
6.1 Description of products
6.2 Target market
6.3 Market size
6.4 Competitors
6.5 Market Share
6.6 Sales forecast
6.7 Marketing Strategy
6.8 Marketing Personnel
6.9 Schedule of Marketing Budget
OPERATIONAL PLAN
9-14
16
16
16
17
19
19-20
20
21
22
23
24
25
26-27
27
9
8
9
7.0 Introduction
7.1 Process Flow Chart
7.2 Operation Process
7.3 Business and Operation Hours
7.4 Production Planning/Schedule
7.5 Materials or Stock Requirement
7.6 Forecasted Acquisitions of Stocks
7.7 Operation personnel
7.8 List of Machine and Equipment
7.9 Operation Layout
7.10 License, Permits and Regulations
7.11 Schedules for Operation Budget
29
30
30-31
31
32
33
34
34-36
36-37
38
39
40
ADMINISTRATION PLAN
8.0
Introduction
8.1. Organizational Chart
8.2. Manpower Planning
8.3. Schedule of Tasks and Responsibilities
8.4. Schedule of Remuneration
8.5. List of Office Furniture, Fittings and Equipment
8.6. Office Layout
8.7. Schedule of Administration Budget
42
43
44
45
46
47-48
49
50
FINANCIAL PLAN
52-60
10 CONCLUSION
62
APPENDICES
64-71
PARTNERSHIP AGREEMENT
73-76
10
EXECUTIVE SUMMARY
11
EXECUTIVE SUMMARY
FaSTME Jeans Bag was established in 2019. Our company provides a convenient jeans
bag that is useful for any kind of age especially for teenagers. This is because jeans bag
has become a trend nowadays which they bring it to school or college. Our jeans bag is
made up of reused jeans that we obtain from the supplier. Our objective for this product
is that we want people to be more aware about the motto ‘reuse, reduce and recycle”.
Our target market are teenagers and students that live in Bandar Jengka. We will expect
that our product will become more developed in the future because of the high demand
from the customers.
12
INTRODUCTION
13
1.0 Introduction

FaSTME Jeans Bag is our business name that was establish in 2019 in Bandar
Pusat Jengka, Pahang. The reason why we open this kind of business is because
there is still no existence of Jeans Bag shop in this small town. Because of that,
we expect to get a lot of customers and high demand from them because we are
their near source to stay in trend with styling our Jeans Bag. Our target market
are teenagers and students that live in Bandar Jengka. For this business, there
are five partnerships that collaborate together to organize our jeans bag company.
We share our ideas, information, and also modal to build up this business
together. The mission for this business is to be a well-known jeans bag for all
community in Jengka and to give the best quality of jeans bag even though from
reuse jeans to all customers. The vision is to achieve the best and useful jeans
bag for daily use. Meanwhile, the main objectives for this business is to make the
customers more aware about the motto “reused, reduce and recycle.”
1.1 Name of the Business Partner
 Erina Suraya Binti Jamal Abd Nasir
 Naatasya Binti Mat Puat
 Munirah Aini Binti Azhar
 Fathin Nazreen Binti Nordin
 Fatin Syahira Binti Ahmad
1.2 Company’s Name
 FaSTME JEANS BAG
1.3 Nature of Business
 We form a business group with five persons as our nature of business. The
profits and the liability are divided fairly and equally based on the contract
agree between all the partners. Every person has their own responsibility in
actively participate in developing the business. So, we can gain more ideas
from each person to increase the productivity of our company.
14
1.4 Industry Profile in General
1.4.1 Background of the Industry

As we used reused jeans for our product, it is said that textile and
clothing
recycling
is
a
potentially
beneficial
activity
from
environmental, social and economic points of view, as opposed to
landfilling or being used for energy. As cities increasingly divert other
high-volume waste streams such as organics, the recycling of old
clothes has been called the next frontier for cities looking to reduce
solid waste.
The main benefit of textile recycling activities is the opportunity to reuse
clothing. Through the reuse of clothes and textiles, we can avoid pollution
and energy-intensive production of new clothing. Additionally, clothing that
cannot be reused may be repurposed into products such as bags, rags or
recycled into fabric or other material for reprocessing.
1.5 Location of the Business
 No. 48 Jalan BDJS 5, Blok Dagangan Jengka, Jalan sejahtera, Bandar Jengka
26400, Bandar Tun Razak, Pahang
1.6 Date of Business Commencement
 19th September 2020
15
1.7 Factors in Selecting the Proposed Business
 The reason why our company choose reused jeans to make the jeans bag is
because jeans was noted for their strength and comfort. This will make our
product last long and can be used for any suitable event. Besides, we want
people to be more aware with about the motto ‘reused, reduce and recycle’.
From this, we have reused the old jeans that used to be a pants to be a jeans
bag where people can bring it everywhere and put their belonging in it. Lastly,
we want to cut our cost by obtaining our raw material which is reused jeans
from the supplier that sell in a low cost. We can make a high-quality product
with an affordable price in the market for customers.
1.8 Future Prospects of the Business
 We want to provide a super stylish jeans bag for our customer’s daily use so
that they satisfied with our product and become our loyal customer. Besides,
we want to achieve our goal to become a well-known company and expand
worldwide until it reached international market. We want to design the best
pattern to our customer with the affordable price and give advantages to the
loyal customer. We will make sure that our product and service are high quality
and give a comfort to our customers.
16
PURPOSE
17
PURPOSE FOR PREPARING BUSINESS PLAN
2.0 Introduction
This business plan is prepared to convince the banker in order to raise capital
and obtain support for the venture. This business plan is also being drafted so that
FaSTME Jeans Bag will get the financial it needs in order to start the business. The
loan is crucial in order to start the business, so the presentation of this business
plan is vital to gain the confidence of the bank. FaSTME Jeans Bag has asked from
Maybank for a loan up to RM35,300 to buy some basic needs in our office. Our
company solely depends on the loan and members’ equity in order to start our
business.
2.1 Purpose for Preparing Business Plan
- To evaluate the project viability and growth potential
The purpose of Business Plan is actually including the summary of business venture,
operational, marketing opportunities, strategy and managers’ skills and abilities to
organize the business.
- To apply for loans or financing facilities from the relevant financial
institutions
Next, it also helps in financial institution which is to evaluate the business in determine
the suitable financial plan that suit the business requirement. It also works as the working
paper, business proposal, project paper.
- To act as a guideline for the management of the proposed business
Business plan is a guideline in our company in setting, planning, managing, handling
and controlling our business to achieve goals of the company. We need to plan all of the
business process one by one, from beginning to the end.
- To allocate business resources effectively
This business distributes resources more effectively. For the small business actually
have a limited or lack of resource at their disposal. The business plan also can help with
the planning and distributions. It should be clear and must prove to potential lenders and
investors that a venture will be able to repay loans and profitable.
18
COMPANY’S BACKGROUND
19
3.0 Company’s Background
Name of the Business
Business Address
Correspondence Address
Website
E- mail
Telephone Number
Form of Business
Main Activity
Date of Commencement
Date of Registration
Registration Number
Name of Bank
Bank Account Number
3.1
FaSTME Jeans Bag
No. 48 Jalan BDJS 5, Blok
Dagangan Jengka, Jalan Sejahtera,
Bandar Jengka, 26400, Bandar Tun
Razak, Pahang
No. 48 Jalan BDJS 5, Blok
Dagangan Jengka, Jalan Sejahtera,
Bandar Jengka, 26400, Bandar Tun
Razak, Pahang
www.fastmejeansbag.com.my
fastmejeansbag@gmail.com
09-4696231
Partnership
Selling jeans bag made up from
reused jeans
19th September 2019
9th August 2019
CA25909-IW
A-73, Jalan Ahmad Shah,
28000 Temerloh, Pahang, Maybank
Berhad
156057620833
Equity Contribution
Percentage
NO
Name of Partner
1
Erina Suraya Binti Jamal Abd Nasir
20
836.20
2
Naatasya Binti Mat Puat
20
836.20
3
Munirah Aini Binti Azhar
20
836.20
4
Fatin Syahira Binti Ahmad
20
836.20
5
Fathin Nazreen Binti Nordin
20
836.20
100
4181
Total
(%)
RM
20
PARTNERSHIPS BACKGROUND
21
4 OWNER OR PARTNERS BACKGROUND
4.1
General Manager
Table 4.1 Background of General Manager
Name of Partners
Identity Card Numbers
Permanent Address
Correspondence Address
Email Address
Telephone Number
Date of Birth
Age
Marital Status
Academic Qualification
Course Attended
Skills
Working Experience
Present Occupation
Previous Business Experience
Erina Suraya Binti Jamal Abd
Nasir
990907-10-5800
No 80, Persiaran Bahagia
Utama, Bahagia Court, 28000
Temerloh, Pahang
No 80, Persiaran Bahagia
Utama, Bahagia Court, 28000
Temerloh, Pahang
erinasuraya07@gmail.com
013-9931533
7th September 1999
20
Single
Sijil Pelajaran Malaysia on 2016
-Talk with PERKESO
-Talk with LHDN and KWSP
-Good in management and
communication
-Have leadership skills
-Can do variable task or job
-Work as waiter in a Restaurant
-Cooker and cashier in a
Restaurant
-Promoter at Supermarket
General Manager/ Student
-Selling home-made dessert
like cake and brownies
22
4.2
Administration Manager
Table 4.1 Background of Administration Manager
Name of Partners
Identity Card Numbers
Permanent Address
Correspondence Address
Email Address
Telephone Number
Date of Birth
Age
Marital Status
Academic Qualification
Course Attended
Skills
Working Experience
Present Occupation
Previous Business Experience
Naatasya binti Mat Puat
990325-06-5036
No 11, Jalan TJ 2/10 Taman
Temerloh Jaya 28000,
Temerloh Pahang
No 11, Jalan TJ 2/10 Taman
Temerloh Jaya 28000,
Temerloh Pahang
naatasyamatpuat@gmail.com
019-9925627
25th March 1999
20
Single
Sijil Pelajaran Malaysia in
2016
-Talk with PERKESO
-Talk with LHDN and KWSP
-Good in using Microsoft
Words
-Very thorough in job
-Have time management skills
-Waiter at restaurant in 5
months
-Promoter at supermarkets in
one months
Administration
Manager/Student
-Selling laundry soap
-Selling metal straw
23
4.3
Marketing Manager
Table 4.1 Background of Marketing Manager
Name of Partners
Identity Card Numbers
Permanent Address
Correspondence Address
Email Address
Telephone Number
Date of Birth
Age
Marital Status
Academic Qualification
Course Attended
Skills
Working Experience
Present Occupation
Previous Business
Experience
Munirah Aini binti Azhar
990304-06-5184
No 25, Lorong IM 5/16 Bandar
Indera Mahkota, 25200 Kuantan
Pahang
No 25, Lorong IM 5/16 Bandar
Indera Mahkota, 25200 Kuantan
Pahang
munirahainii@gmail.com
011-19979606
4th March 1999
20
Single
Sijil Pelajaran Malaysia in 2016
-Talk with PERKESO
-Talk with LHDN and KWSP
-Able to speak fluently in Malay
and English
-Able to work in team
-Creative thinking
Part time waiter at a café
Marketing Manager/ Student
-Selling shawl and skirt for
Muslimah
24
4.4
Operational Manager
Table 4.1 Background of Operational Manager
Name of Partners
Identity Card Numbers
Permanent Address
Fatin Syahira Binti Ahmad
990613-01-6888
No 18 Jalan 49e Taman Kluang
Barat, Kluang 86400 Johor
Correspondence Address No 18 Jalan 49e Taman Kluang
Barat, Kluang 86400 Johor
Email Address
fathinnsyahira17@gmail.com
Telephone Number
017-7701767
Date of Birth
13th June 1999
Age
20
Marital Status
Single
Academic Qualification
Sijim Pelajaran Malaysia in 2016
Course Attended
-Talk with PERKESO
-Talk with LHDN and KWSP
Skills
-Responsible person
-Fast typing
-Can communicate well with client
Working Experience
Working at sales-car company
Present Occupation
Operational Manager/Student
Previous Business
-Selling online gadjet
Experience
25
4.5
Financial Manager
Table 4.1 Background of Financial Manager
Name of Partners
Identity Card Numbers
Permanent Address
Correspondence Address
Email Address
Telephone Number
Date of Birth
Age
Marital Status
Academic Qualification
Course Attended
Skills
Working Experience
Present Occupation
Previous Business
Experience
Fathin Nazreen Binti Nordin
990814-06-5280
No6 Lorong Seri Setali 10, Taman
Galing 25350, Kuantan Pahang
No6 Lorong Seri Setali 10, Taman
Galing 25350, Kuantan Pahang
fathinnazreen@gmail.com
016-3674849
14th August 1999
20
Single
Sijil Pelajaran Malaysia in 2016
-Talk with PERKESO
-Talk with LHDN and KWSP
-Active worker
-Excel in Accounting
-Dedicated person
-Part time chess arbiter
-Part time workers at mall
Financial Manager/Student
-Selling accecories for girls
26
LOCATION OF THE BUSINESS
27
5.0 LOCATION OF BUSINESS
5.2. Physical location of the project
The location of the business will be at No. 48 Jalan BDJS 5, Blok Dagangan
Jengka, Jalan sejahtera, Bandar Jengka 26400, Bandar Tun Razak, Pahang.
The location is very strategic because it is near to the big supermarket in Bandar
Jengka which is Econsave and there are also housing area nearby. Besides,
there are also a secondary school near our shop so students will stop by to look
for the trendy bag.
5.3. Building
The structure of our building is double storey building which means it has two
floors or levels. But for our company, we only rent for the ground floor. The cost
of rental for our building is RM1800. The condition and size is quiet comfortable
for us to run our small business.
5.4. Basic amenities
 Water
 Electricity
 Communication lines
 Telephone lines
28
FROM
TEMERLOH /
JERANTUT
WE ARE HERE!
FaSTME JEANS
BAG
JUNGLE CAFE
ECONSAVE
SMK JENGKA
PUSAT 2
UiTM JENGKA
FROM CHENOR
29
MARKETING PLAN
30
1. Marketing Plan
6.0 Introduction
Marketing plan will provide valuable information of our business to the
customers. The objectives of this marketing plan are to raise the customers’
awareness of our brand in our target market so that our product will be more
familiar in the market. Next, it is also to inform the product of our company by
distributing the flyers to all the resident’s area as one of the alternatives of
promotional strategies. Lastly, to make our service safe by producing and
supplying excellent quality products to make the customers satisfied with us.
6.1 Description of products
This business serves the newest bag by using used jeans pants with various
designs as a way to save the used pants from being wasted if it is not used
anymore. We also provide and supply the excellent quality of bags with good
service in striving to meet customer needs and expectations. FaSTME Jeans
Bag provides more choice and variety of design which can attract the customers
such as for events, function and daily use in a stylish but simple way. Therefore,
the designs of our product are important since it could be the attraction to our
customers.
Table 6.1.1: Product description
Product
Description
Features
 A bag
 For casual wear
Materials
 Jeans texture
Benefits
 Long lasing
 High quality
31
Table 6.1.2: List of Product Provided
No.
Types of Product
1
Jeans Bag
Cost Price per Unit
Selling Price per
(RM)
Unit (RM)
3.00
40.00
6.2 Target market
Target market is the group of customers with needs and wants that can be
satisfied
by the business through the supply of good services. In ensuring our
aim of the business to gain profit in this market, our business had to focus on
the effort of marketing to identify the group of customers who love denim and
the one that wanted to recycle their own denim pants. Since Bandar Jengka is
the main attraction for people in Jengka to buy their things, our business can be
main well-known here and become the main source of bag shop. Our market
area is around the office, housing, school and shops at Bandar Pusat Jengka,
Pahang. The business is focus to children and teenager in Jengka that will use
this bag for their daily life. Our target market is for teenagers and children that
can use this bag to go to school to go shopping. From 24,000 population in
Bandar Pusat Jengka, we targeted 4,500 people to buy our product to start this
business.
No.
Market Segmentation
1.
University students
2.
Secondary school students
3
Students
Location or Address
UiTM Jengka
SMK Jengka Pusat
Skill Matriculation, Jengka
32
6.3
Market size
Market size is the total potential purchase that is expected from the target
market. Estimation of the target market is done by requiring information regarding
the particular market business that we intend to enter. The market size can be
found by the total market purchase from the target market. The population in
Jengka is 77,000 people while in Bandar Pusat Jengka is 24,000 based on the
census that was made by Pejabat Daerah Maran. This business will be targeted
to the population in Bandar Pusat and the bag will be sold RM40 per bag. The
4,500 customer is expected to come from students around Jengka and children
that live here.
Total market size = 4500 X RM40 X 12 months
= 2,160,000
33
6.4
Competitors
There are a few competitors that could be identify in Bandar Jengka that is
selling various design of bags. These stores have been the main destination for
the population there to search for various types of bags. However, there are
limited store that is selling bags that was made from a high-quality denim. There
are three competitors that could be identified in this industry that could affect this
business.
Table 6.3 Competitors
No.
Name and Address of
Strengths
Weaknesses
Competitors
STEPS Bag Shop
8, Lorong Baiduri 7,
1
Bandar Jengka,
26400 Bandar Tun Razak,
 Variety designs
 Well known
 Prices does not suit
the quality
Pahang.
Mawi Bundle
2
12, Lorong Baiduri 7,
 Cheap price
Bandar Jengka,
 Have own regular
26400 Bandar Tun Razak,
customers.
 Cannot use for long
term
 Bad service
Pahang.
Retro bundle
76, Lorong Intan 2,
3
Bandar Jengka,
26400 Bandar Tun Razak,
 Moderate price
 Good service
 Limited order and
design
Pahang.
34
6.5
Market Share
Table 6.4: Market share
No.
Before entering the
After entering the
market
market
Name and Address of
Competitors
Percentage
RM
(%)
Percentage
RM
(%)
STEPS Bag Shop
8, Lorong Baiduri 7,
1
Bandar Jengka,
60
1,296,000
20
432,000
20
432,000
-
-
100
2,160,000
26400 Bandar Tun Razak,
Pahang.
Mawi Bundle
12, Lorong Baiduri 7,
2
Bandar Jengka,
26400 Bandar Tun Razak,
Pahang.
Retro bundle
76, Lorong Intan 2,
3
Bandar Jengka,
26400 Bandar Tun Razak,
Pahang.
FaSTME Jeans Bag
48, Jalan BDJS 5, Blok
Dagangan Jengka,
4
Jalan Sejahtera,
Bandar Jengka,
10
216,000
26400 Bandar Tun Razak,
Pahang.
TOTAL
35
6.6
Sales forecast
Table 6.5: Sales Forecasting
Year
Month
1
1
17,800
2
18,200
3
18,400
4
18,500
5
18,200
6
17,800
7
17,500
8
18,000
9
18,100
10
17,700
Students already started
11
17,600
schooling terms
12
18,200
New semester started
Year 2
Sales Forecast
Total
216,000
Total
237,600
Total
273,240
Reasons
End of the year so
students will buy things
for next year’s school
Students already started
schooling terms
Festive seasons
(10%)
Year 3
(15%)
36
6.7
Marketing Strategy
6.7.1 Product Strategy
= Our business will be offering a high-quality product and serving the
customers with the best services. Our focus is towards children and
students so the bags will be made in a catchy design but not too
striking that will be annoying to the customers. Different designs will
be made with simple design for formal use with extra compartments.
6.7.2 Price Strategy
= The material of our bag is from a high-end Jean so it will last long
and will look attractive to our target market and they can get it in an
affordable price with a high-quality product.
6.7.3 Distribution Strategy
= Bandar Pusat Jengka, Pahang is the centre for teenager and
student in Jengka to buy what they need with less competition from
the nearby store.
6.7.4 Promotion Strategy
= We use social media like Instagram and Facebook to promote the
bag to the customer that do not live in Jengka. A few banners of our
shop are also placed in a few hotspots
37
6.8
Marketing Personnel
6.8.1 Position and Number of Staff
The marketing department will be led by the marketing
manager and assist by a marketing assistant to do all the
marketing for the company to the potential customers.
Table 6.6: Position and Number of Staff
No.
Position
Number of Staff
1
Marketing Manager
1
2
Marketing assistant
1
6.8.2 Schedule of Task and Responsibilities
Table 6.7: Task and Responsibilities
Position
Task and Responsibilities
 Responsible to track and analyse the
performance of advertising campaigns, managing
the marketing budget.
Marketing manager
 Responsible for searching and developing
marketing opportunities, planning and
implementing new sales plans.
 Develop pricing strategies, balancing firm
objective and customer satisfaction.
 Assist the marketing manager in planning the
strategy for the product.
Marketing assistant
 Handling in promoting the products to the
outsiders all around Jengka
 Distributing flyers and updating content in social
media.
38
6.8.3
Schedule of Remuneration
Table 6.8: Remuneration
No.
1
2.
6.9
Position
Number
of Staff
Marketing
Manager
Marketing
Assistant
1
1
Monthly
EPF
SOCSO
Salary
Contributions
(RM)
Amount
(RM)
(RM)
1,500.00
195.00
25.35
1,720.35
1,200.00
159.00
21.35
1,380.35
Schedule of Marketing Budget
Table 6.9: Marketing Budget
Item
Fixed Assets
Monthly
Other
Expenses
Expenses
Expenses
(RM)
(RM)
(RM)
Fixed Asset
Signboard
Flyers
Brochure
320
20
150
Working capital
Salary/ EPF/ Socso
1,381
Other Expenses
Opening ceremony
2,200
Signboard license
TOTAL
200
490
1,381
2,400
39
OPERATIONAL PLAN
40
8.0
Introduction
Operational objectives are short-term or limited goals that are structured to more an
organization closer to the realization of its ultimate or long-term goals. In this plan, the
objectives are to provide qualitative product in order to achieve customer’s satisfaction,
to increase effectiveness and efficiency of our performance and to utilize the capacity
such as the percentage of manpower and machinery.
First of all, our main objective in this business is to provide qualitative products in
order to achieve customer’s satisfaction. Customer’s satisfaction is a crucial element in
our business as customers are our source of income. If they satisfied with our product,
this business can gain their trust and soon they are becoming our regular customers
which are an advantage for our business.
Secondly is to increase effectiveness and efficiency of our performance. We are giving
full and complete training to our tailor so that the tailor can improve the efficiency in
performing the tasks. On the other hand, to increase the effectiveness of the
performance, we will let our customers evaluate our performance and ask for their
feedback, either our company are giving the best product to them or not.
Last but not least, we are focusing to utilize the percentage of manpower and
machinery. For example, we are not hiring excessive number of employees as we are
maintaining quality rather than quantity. Thus, our company are only hiring skilled tailor
who are having great knowledge on sewing various design of jeans bag. This is ensuring
that the customers are satisfying when receiving our product at our shop.
41
8.1
Process Flow Chart

A flow chart is the step by step process of producing the product using
symbols and duration to determine the stages. At this below are the process
flow chart in making the jeans bag:
Got the raw jeans material
Cut parts received from cutting room
Design of the bag in 2 weeks
Bag production begins
In line inspection
Production continues
Rough checking
Ironing
Tagging price on the bags
Display it on the racks
Ready to sell
8.2
Operation Process
 The identification of the step-by-step processes from beginning till end in
making the product or providing the services. It explains the activity
involved, duration and the equipment used. For a business, the process
planning explains all the steps that should be taken from the start to finish
in providing the service to the customer or to produce product. The step by
step processes can be illustrated using diagrams such as activity chart.
42
Greet the customer
Bring custometer to the bag shelter
Show a variety design of the bags
Customer pick the best design
Customer pay for the bag
Give receipt to customer
Send the client to the door
8.3
Business and Operation Hours

Our company operates on 6 days per a week. Our company takes 1 off day
due to the meeting with customers or checking materials. Our company will
be closed on Sunday and public holiday.
Days
Time
Business hours
Monday – Saturday
10.00 a.m. – 6.00 p.m.
(Sunday off)
Operations hours
Monday – Saturday
8.00 a.m. – 7.00 p.m.
(Sunday off)
43
8.4
Production Planning/Schedule
7.4.1. Sales forecast per month
Output per month
o Average sales forecast per month = RM 216 000 / 12 month
= RM 18 000
o The sales price = RM 40 per unit
o Number of outputs per month =
RM 18 000
RM 40
= 18 000 / 40
= 450
7.4.2. Number of outputs per day
The number of working days per month is 26 days
= No. of output per month / no. working days per month
= 450 / 26
= 17 units
7.4.3. Number of units per hour
Such as daily working hour = 8 hours
= No. of output per day / daily working hours
= 17 units / 8 hours
= 2 units per hour
44
8.5
Materials or Stock Requirement

Material planning is done to determine the type and amount of raw materials
needed for production.
Table 7.1: Raw Material Required per Month (Bill of Material)
Types of
Quantity
Material or
(average
Stock
per month)
1
Jeans
400 meters
RM 2.50
1000
2
Yarn
40 units
RM 0.50
20
3
Zip
400 units
RM 0.80
320
No
Price (cost
price)
Total
Total (RM)
Supplier
1340
45
8.6
Forecasted Acquisitions of Stocks

Forecasting acquisitions of stocks is making an informed prediction about
placing an order. Using forecasting models such as determining reorder
points and economic order quantities can help ensure optimal inventory
control.
Table 7.2: Acquisition of Stocks
8.7
Year
Month
Purchases (RM)
1
1
1340
2
1524
3
1541
4
1548
5
1524
6
1491
7
1464
8
1508
9
1514
10
1481
11
1474
12
1524
Total
17933
Year 2 (10%)
Total
19726.3
Year 3 (15%)
Total
22685
Operation personnel
7.7.1
Position and Number of Staff
Table 7.3: Position and Number of Staff
No.
Position
Number of Staff
1
Operation Manager
1
2
Tailor
1
46
7.7.2
Schedule of Tasks and Responsibilities
Table 7.4: Tasks and Responsibilities
No.
Position
Main Task and Responsibilities

To make sure an organisation is
running as well as it possibly can, with
a smooth efficient service that meets
the
expectations
and
needs
of
customers and clients.

Maintains and improves call centre
operations
1
Operational Manager
by
performance;
monitoring
system
identifying
and
resolving problems; preparing and
completing action plans; completing
system
managing
audits
system
and
and
analyses;
process
improvement and quality assurance
programs; installing upgrades.

Maintains in sews, joins, reinforces, or
finishes clothing or other items. They
may create new pieces of clothing
2
from patterns and designs or alter
Tailor
existing garments to fit customers
better.

Fit and study garments on customers
to determine required alterations.
47
7.7.3
Schedule of Remuneration

Schedule of remuneration is special schedule for every staff in this
department. Its function is to set out details of the specific
payments that it intends to make to Operational Manager and a
tailor in accordance with the levels of remuneration and allowances
determined by the Independent Remuneration Panel for Wales
(IRPfW).
Table 7.5: Remuneration
No.
Position
Number
of Staff
Monthly
EPF
Salary/allowances Contribution
(RM)
SOCSO
Amount
(RM)
( RM )
(13%)
(RM)
1
Operation
1
1500
195
25.35
1720.35
1
1200
159
21.85
1380.85
manager
2
Tailor
TOTAL
8.8
3101.20
List of Machine and Equipment
Machine
Supplier
a. Sailrite Ultrafeed ISZ-1
Tarmah Sewing Machine M Sdn Bhd,
b. 206rb-2
Batu Pahat, Johor
c. Straight stitch sewing
Konwa Industrial Sewing Machine (M) Sdn
machine
Bhd.
Lot 11 & 13, Jalan 51/201, Off Jalan
Tandang, Seksyen 51, 46050 Petaling Jaya,
Selangor, Malaysia.
48
Table 7.6: Machine and Equipment
No.
Item
Price/unit
Unit
(RM)
Required
RM 3836.66
1
Sailrite
1
Total
Cost
Supplier
(RM)
RM
Tarmah Sewing
3836.66
Machine M Sdn
Ultrafeed LSZ-
Bhd,
1
Batu Pahat,
Johor
RM 5457.85
2
RM
Tarmah Sewing
5457.85
Machine M Sdn
1
206rb-2
Bhd,
Batu Pahat,
Johor
RM 1242.16
RM
Konwa Industrial
1242.16
Sewing Machine
1
(M) Sdn Bhd.
Lot 11 & 13,
Straight stitch
3
Jalan 51/201, Off
sewing
Jalan Tandang,
machine
Seksyen 51,
46050 Petaling
Jaya, Selangor,
Malaysia
TOTAL
RM
10,536.67
49
Operation Layout
Layout based on office operation manager
Space for display
development
Entrance
7.9.1
Stores
( Raw
materials )
Office
7.9.2
Iron Department
8.9
Layout based on production process
Sewing
Department
Machine 1
Machine 2
Machine 3
Display Department
Entrance
Toilet
Cutting
Department
Toilet
50
8.10
License, Permits and Regulations
 Before a business can operate legally, businesses must adhere to some
form of licensing, which may include general licenses, industry/sectorspecific licenses or activity-specific licenses. Business licenses are
required by law and administered by various government agencies,
statutory bodies and local authorities. Business licenses include
registrations, approvals, licenses and permits. Compliance requirements
vary by industry, business activity and location.
The General License List, which applies to any business includes:
1. Company Registration
2. Company and Employee Income Tax Registration
3. Employees Provident Fund
4. SOCSO
5. Human Resource Development Fund
6. Business Premises License and Signage License
7. Business Premises License and Signage License
8. Businesses in Malaysia need to apply for business premises
licenses and signage licenses from their respective State Authorities
51
7.11
Schedules for Operation Budget

Items
Machinery
Utilities
Raw materials
Table 7.7: Operation Budget
Fixed Asset
Monthly
Other
Expenses
Expenses
Expenses
(RM)
(RM)
10,537.00
600.00
1340.00
Salary/EPF/SOCSO
-
-
Operational
1720.35
Manager
1380.85
Tailor
Maintenance
Total
1000.00
12,477.00
3,101.20
0.00
52
ADMINISTRATION PLAN
53
8.0 Introduction
8.0.1 Vision

To achieve the best and useful jeans bag for daily use.
8.0.2 Mission

To be a well-known jeans bag for all community in Jengka.

To give the best quality of jeans bag even though from reuse jeans to all
customers.
8.0.3 Objectives

The objectives of this business are to make sure that this business will run
smoothly with a good business plan that includes planning, organizing,
leading and controlling from the Administration Department. From that,
surely this business will run effectively and efficiently since every task and
duties has been schedule for them owns.

Second objectives of this business are to keep this business
understandable among the partners and workers. This is because due to
the organizational structure from the Administration Department, workers
know to whom they need to submit a full report and refer to. Partners also
can focus more to their own workers based on the organizational structure.

To get and stay profitable is the next objective for this business. maintaining
profitability is that revenue stays ahead of the costs of doing business.
Administration department is associate to in charge of controlling costs in
purchase things for company to prevent from leading loss to the business.
54
8.1. Organizational Chart
GENERAL MANAGER
ERINA SURAYA
MARKETING
MANAGER
ADMINISTRATION
MANAGER
OPERATIONAL
MANAGER
FINANCIAL
MANAGER
MUNIRAH
NAATASYA
FATIN SYAHIRA
FATHIN
55
8.2. Manpower Planning

Manpower planning is the process in this business of estimating the optimum
number of people required for completing a business, task or goal within time.
In this business there have five position for every department. The main
manpower is General Manager. Erina Suraya Binti Jamal Abd Nasir as a
General Manager. Then follow by Naatasya Binti Mat Puat as Administration
Manager. Marketing Manager position taken by Munirah Aini Binti Azhar
while Operational Manager take by Fatin Syahira Binti Ahmad. The last
department in this business is Financial department, Fathin Nazreen Binti
Nordin as a Financial manager.
Table 8.2: Position and Number of Staff
No.
Position
Number of staffs
1.
General Manager
1
2.
Administration Manager
1
3.
Marketing Manager
1
4.
Operational Manager
1
5.
Financial Manager
1
56
8.3. Schedule of Tasks and Responsibilities
 Schedule of tasks and responsibilities is prepared by Administration
department for General Manager and for every part of department in this
company to make them easier and know what their tasks and responsibilities.
Table 8.3: Tasks and Responsibilities
Position
General
Manager
Tasks and Responsibilities

Responsible for overseeing all administrative work of business.

Involve in leading and directing employees.

Delegate administrative task such as account, paperwork and payroll.
 Responsible for making travel and meeting arrangements, preparing reports
Administration
Manager
and maintaining appropriate filling systems.
 Supervising day to day operations of the administrative department and staff
members.
 Overseeing the administrative operation of the business.
 Responsible to track and analyse the performance of advertising campaigns,
Marketing
Manager
managing the marketing budget.
 Responsible for searching and developing marketing opportunities, planning
and implementing new sales plans.
 Develop pricing strategies, balancing firm objective and customer satisfaction.
Operational
Manager
 Responsible overseeing the production of goods and provision of services.
 Responsible to make sure an organisation is running as well as it possibly can
with a smooth efficient service that meets the expectations and needs of
customers and clients.
 Responsible for financial health of an organization.
Financial
Manager
 Produce financial reports, direct investment activities and develop strategies
and plans for long-term financial goals.
 Find way to improve profitability and analyse markets for business
opportunities such as expansion, merges or acquisitions.
57
8.4. Schedule of Remuneration

Schedule of remuneration is special schedule for every staff in the
company. Its function is to set out details of the specific payments that it
intends to make to General Manager and others manager in company such
as Administration Manager, Marketing Manager, Operational Manager and
lastly Financial Manager in accordance with the levels of remuneration and
allowances determined by the Independent Remuneration Panel for Wales
(IRPfW).
Table 8.4: Schedule of Remuneration
No.
1.
2.
3.
4.
5.
Position
General
Manager
Administration
Manager
Marketing
Manager
Operational
Manager
Financial
Manager
Number
of Staff
1
1
1
1
1
Monthly
EPF
Salary
Contribution
(RM)
(RM)
2 000.00
260.00
34.15
2 294.15
1 700.00
221.00
28.85
1 749.85
1 500.00
195.00
25.35
1 720.35
1 500.00
195.00
25.35
1 720.35
1 500.00
195.00
25.35
1 720.35
Total
9 205.05
SOCSO
(RM)
Amount (RM)
58
8.5. List of Office Furniture, Fittings and Equipment

In every business must think about the types of equipment that the
company needs for their employees to do job properly. Office equipment is
very important for every company to give a benefit to the employees and
good for business image. In this business, office furniture is the first thing
that need before open the business. choosing a right office furniture play
an important role in increasing the morale and productivity of the
employees. Next, office management and supplies such as stationary for
daily use. Lastly, equipment for this business are computer, printer and airconditioner.
Table 8.5.1: List of Office Furniture and Fittings
No.
Item
Quantity
Price per Unit
Total Cost
(RM)
(RM)
1.
IKEA ADDE Chair
3
20.00
60.00
2.
IKEA PELLO Chair
6
99.00
594.00
3.
Nordic Large Table
1
234.00
234.00
4.
Steel Frame Table
5
80.00
400.00
5.
Office Chair
5
70.00
350.00
6.
Nordic Eames Chair
6
63.00
378.00
7.
Sofa
1
130.00
130.00
8.
Simple Bar Table
1
64.00
64.00
9.
Nordic Bar Chair
4
34.00
136.00
10. Bag Rack Shelf
5
35.00
175.00
11. Sarako Rack Shelf
4
70.00
280.00
12. Coffee Table
1
39.00
39.00
13. Small Coffe Chair
4
40.00
160.00
Total (RM)
3 000.00
59
Table 8.5.2: List of Office Management and Supplies
No.
Item
Quantity
Price per Unit
Total Cost
(RM)
(RM)
1.
Notebook
5
10.00
50.00
2.
Yellow Ink Paper 70gsm
15
9.60
144.00
3.
Faber Castle Ball Point Pen
20
0.90
18.00
4.
Ring File
10
6.00
60.00
Total (RM)
272.00
Table 8.5.3: List of Office Equipment
No.
Item
Quantity
Price per Unit
Total Cost
(RM)
(RM)
1.
Printer Canon Pixma E480
1
198.00
198.00
2.
Phone NEC 12
1
307.00
307.00
3.
Computer HP Elite 6000
5
399.00
1 995.00
4.
Sharp Air-Conditioner
2
650.00
1 300.00
Total (RM)
3 800.00
60
8.6. Office Layout

Meeting room, General Manager’s room, Store room and others part in
the office can be differentiate in a part based on the Office Layout. The
arrangement of equipment within the available floor space is comes from
Office Layout. It is very important for a company to get the best space for
them.
Picture 8.6: Office and Store Layout
61
8.7.
Schedule of Administration Budget

Administration budget is an official, detailed financial plan for an
upcoming period for a business. It is usually prepared on an annual or
quarterly basis and identifies the costs of running an operation that is not
tied to producing a product or service. Amount of money is taking to run
the company.
Table 8.7: Schedule of Administration Budget
Item
FIXED ASSET
Land and Building
Furniture and Fittings
Office Equipment
Fixed Assets
Expenses (RM)
Monthly
Expenses (RM)
Other
Expenses
(RM)
1 800.00
3 000.00
3 800.00
WORKING CAPITAL
Office Management
Salary/ EPF/ Socso
272.00
9205.00
OTHER EXPENSES
Insurance of Store
SSM Registration
Total (RM)
200.00
100.00
8 600.00
9 477.00
300.00
62
FINANCIAL PLAN
63
9.0
FINANCIAL PLAN
FINANCIAL PLANNING
© Ismail Ab.Wahab, MEDEC, UiT M, 2006
FaSTME JEANS BAG
NAME OF BUSINESS/COMPANY
1. Projected administrative, marketing and operations expenditure :
MARKETING EXPENDITURE
Fixed Assets
signboard
flyers
brochure
ADMINISTRATIVE EXPENDITURE
Fixed Assets
RM
320
20
150
Land & Building
furniture
office equipment
Working Capital
Working Capital
Salary/EPF/SocSo
marketing staff
salary/EPF/SocSo
office management
Other Expenditure
Other Expenditure
Pre-Operations
Deposit (rent, utilities, etc.)
Business Registration & Licences
Insurance & Road Tax for Motor Vehicle
Other Expenditure
TOTAL
1,381
2200
200
4,271
OPERATIONS EXPENDITURE
RM
1,800
3,000
3,800
Year 2
Year 3
3. Collection for sales & payment for purchases:
4. Economic life of fixed assets &
depreciation method:
10,537
1,000
200
Pre-Operations
Deposit (rent, utilities, etc.)
Business Registration & Licences
Insurance & Road Tax for Motor Vehicle
Other Expenditure
TOTAL
100
18,377
Raw Materials
Carriage Inward & Duty
Salaries, EPF & SOCSO
tailor
17,800
18,200
18,400
18,500
18,200
17,800
17,500
18,000
18,100
17,700
17,600
18,200
216,000
237,600
273,240
COLLECTIONS FOR SALES
In the month of sale
1 month after sale
2 months after sale
Total
Pre-Operations
Deposit (rent, utilities, etc.)
Business Registration & Licences
Insurance & Road Tax for Motor Vehicle
Other Expenditure
TOTAL
100%
100%
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Total Year 1
ToTal Year 2
Total Year 3
600
14,858
signboard
flyers
5
5
5
5
5
5
1,340
1,524
1,541
1,548
1,524
1,491
1,464
1,508
1,514
1,481
1,474
1,524
17,933
19,726
22,685
\
PAYMENTS FOR PURCHASES
In the month of purchase
20%
1 month after purchase
40%
2 months after purchase
40%
Total
100%
FIXED ASSETS
Econ. Life (yrs)
furniture
office equipment
brochure
machinery
maintenance
DEPRECIATION METHOD (1=straight line, 2=declining b alance)
5. Increase in working capital (if any):
1,381
PURCHASE PROJECTION
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Total Year 1
ToTal Year 2
Total Year 3
FIXED ASSETS
1,340
Other Expenditure
Other Expenditure
SALES PROJECTION
Year 1
RM
machinery
maintenance
Working Capital
9,205
272
Other Expenditure
Other Expenditure
2. Projected sales and purchases:
Fixed Assets
Econ. Life (yrs)
5
5
5
5
5
5
1
INCREASE IN WORKING CAPITAL (%)
Year 2
Year 3
6. Ending stock for raw materials
and finished goods:
ENDING STOCK OF RAW MATERIALS
RM
End of Year 1
End of Year 2
End of Year 3
7. Rate of taxation (for private limited company):
ENDING STOCK OF FINISHED GOODS
RM
End of Year 1
End of Year 2
End of Year 3
TAX RATE
Year 1
Year 2
Year 3
8. Business background:
BUSINESS LEGAL ENTITY
2
1 = Private Limited Cpmpany (Sdn. Bhd.)
2 = Partnership
3 = Sole Proprietorship
9. Sources of finance:
TERMS OF LOAN (if required)
Interest rate
Loan duration
Interest payment method*
NATURE OF BUSINESS
1
1 = Manufacturing
2 = Trading
3 = Service
5%
5
2
* Method: 1 = flat rate 2 = annual rest
kadar tetap
TERMS OF HIRE-PURCHASE (if required)
Interest rate
5%
Hire-purchase duration
5
Click here to allocate the sources of finance
64
FaSTME JEANS BAG
PROJECT IMPLEMENTATION COST & SOURCES OF FINANCE
Sources of Finance
Project Implementation Cost
Requirements
Fixed Assets
Land & Building
furniture
office equipment
signboard
flyers
brochure
machinery
maintenance
1 months
Working Capital
Administrative
Marketing
Operations
Pre-Operations & Other Expenditure
5%
Contingencies
TOTAL
Loan
Cost
Hire-Purchase
Own Contribution
Existing F. Assets
Cash
1,800
3,000
3,800
1,000
2,309
3,400
800
691
400
320
20
150
320
20
150
10,537
1,000
10,537
800
9,477
1,381
2,721
3,300
1,875
9,477
1,381
2,721
1,300
1,875
39,381
34,800
200
2,000
4,181
400
65
66
Total
Deposit (rent, utilities, etc.)
Business Registration & Licences
Insurance & Road Tax for Motor Vehicle
Other Pre-Operations Expenditure
Pre-Operations & Other Expenditure
Other Expenditure
Working Capital
salary/EPF/SocSo
office management
Fixed Assets
Land & Building
furniture
office equipment
Particulars
8,600
1,800
3,000
3,800
-
9,477
9,205
272
-
18,177 Total
300
Fixed Assets
signboard
flyers
brochure
Particulars
200
100
-
1,800
3,000
3,800
-
Total
490
320
20
150
-
1,381
1,381
-
2,071 Total
2,400
Particulars
2,200
200
-
Total
11,537
10537
1000
2,721
1,340
1,381
-
600
14,858
600
1,340
1,381
-
10,537
1,000
-
Total
600
-
F.Assets Monthly Exp. Others
OPERATIONS BUDGET
Fixed Assets
320 machinery
20 maintenance
150
Working Capital
Raw Materials
1,381 Carriage Inward & Duty
Salaries, EPF & SOCSO
tailor
Pre-Operations & Other Expenditure
Other Expenditure
Deposit (rent, utilities, etc.)
200 Business Registration & Licences
Insurance & Road Tax for Motor Vehicle
Other Pre-Operations Expenditure
-
F.Assets Monthly Exp. Others
MARKETING BUDGET
Working Capital
9,205 Salary/EPF/SocSo
272 marketing staff
Pre-Operations & Other Expenditure
Other Expenditure
- Deposit (rent, utilities, etc.)
100 Business Registration & Licences
- Insurance & Road Tax for Motor Vehicle
- Other Pre-Operations Expenditure
F.Assets Monthly Exp. Others
ADMINISTRATIVE BUDGET
Fixed Asset
Cost (RM)
Method
Economic Life (yrs)
Year
Annual
Depreciation
1
2
3
4
5
6
7
8
9
FaSTME JEANS BAG
LOAN & HIRE-PURCHASE AMMORTISATION SCHEDULES
Fixed Asset
Cost (RM)
Method
Economic Life (yrs)
furniture
3,000
Straight Line
5
Accumulated
Depreciation
Book Value
600
600
600
600
600
0
0
0
0
600
1,200
1,800
2,400
3,000
0
0
0
0
0
0
10
FaSTME JEANS BAG
DEPRECIATION SCHEDULES
3,000
2,400
1,800
1,200
600
-
Fixed Asset
Cost (RM)
Method
Straight Line
Economic Life (yrs) 5
Year
Annual
Depreciation
-
1
2
3
4
5
6
7
8
9
10
-
Fixed Asset
Cost (RM)
Method
Economic Life (yrs)
Year
Annual
Depreciation
1
2
3
4
5
6
7
8
9
10
64
64
64
64
64
0
0
0
0
0
Annual
Depreciation
1
2
3
4
5
6
7
8
9
10
30
30
30
30
30
0
0
0
0
0
Fixed Asset
Cost (RM)
Method
Economic Life (yrs)
Year
Annual
Depreciation
2,107
2,107
2,107
2,107
2,107
0
0
0
0
0
1
2
3
4
5
6
7
8
9
10
Accumulated
Depreciation
64
128
192
256
320
0
0
0
0
0
Book Value
-
Book Value
320
256
192
128
64
-
Book Value
150
30
60
90
120
150
0
0
0
0
0
120
90
60
30
-
760
1,520
2,280
3,040
3,800
0
0
0
0
0
0
10
Year
Annual
Depreciation
Accumulated
Depreciation
-
1
2
3
4
5
6
7
8
9
10
-
Year
Annual
Depreciation
1
2
3
4
5
6
7
8
9
10
4
8
12
16
20
0
0
0
0
0
Year
Annual
Depreciation
1
2
3
4
5
6
7
8
9
10
Book Value
10,537
8,430
6,322
4,215
2,107
-
Year
1
2
3
4
5
6
7
8
9
10
Principal
6,960
6,960
6,960
6,960
6,960
0
0
0
0
0
Interest
1,740
1,392
1,044
696
348
0
0
0
0
0
Total Payment
Principal Balance
8,700
8,352
8,004
7,656
7,308
-
34,800
27,840
20,880
13,920
6,960
-
-
Year
Principal
Interest
Total Payment
Principal Balance
1
2
3
4
5
6
7
8
9
-
-
-
-
10
-
-
-
-
Book Value
Book Value
20
16
12
8
4
-
Accumulated
-
-
-
200
200
200
200
200
0
0
0
0
0
Annual
Depreciation
Book Value
-
-
Year
1
2
3
4
5
6
7
8
9
10
Book Value
-
-
Annual
Depreciation
1
2
3
4
5
6
7
8
9
10
Accumulated
Depreciation
maintenance
1,000
Straight Line
5
Accumulated
Depreciation
200
400
600
800
1,000
0
0
0
0
0
Cost (RM)
Method
Straight Line
Economic Life (yrs) 5
-
10
-
Fixed Asset
Annual
-
4
4
4
4
4
0
0
0
0
0
Cost (RM)
Method
Straight Line
Economic Life (yrs) 5
Depreciation
1
2
3
4
5
6
7
8
9
5%
5
flyers
20
Straight Line
5
Fixed Asset
Year
Year
3,800
3,040
2,280
1,520
760
-
Amount
Interest Rate
Duration (yrs)
-
Accumulated
Depreciation
-
Fixed Asset
Cost (RM)
Method
Economic Life (yrs)
machinery
10,537
Straight Line
5
2,107
4,215
6,322
8,430
10,537
0
0
0
0
0
Book Value
760
760
760
760
760
0
0
0
0
HIRE-PURCHASE REPAYMENT SCHEDULE
34,800
5%
5
Baki Tahunan
Fixed Asset
Cost (RM)
Method
Straight Line
Economic Life (yrs) 5
-
Accumulated
Depreciation
Method
Accumulated
Depreciation
Fixed Asset
Cost (RM)
Method
Economic Life (yrs)
brochure
150
Straight Line
5
Accumulated
Depreciation
1
2
3
4
5
6
7
8
9
Amount
Interest Rate
Duration (yrs)
Fixed Asset
Cost (RM)
Method
Straight Line
Economic Life (yrs) 5
signboard
320
Straight Line
5
-
Fixed Asset
Cost (RM)
Method
Economic Life (yrs)
Year
Accumulated
Depreciation
Year
Annual
Depreciation
LOAN REPAYMENT SCHEDULE
office equipment
3,800
Straight Line
5
Book Value
1,000
800
600
400
200
-
Accumulated
Depreciation
-
Depreciation
-
Book Value
-
67
68
4,181
20,022
17,854
ENDING CASH BALANCE
2,168
17,854
17,854
CASH SURPLUS (DEFICIT)
24,418
20,022
4,395
13,805
145
15,632
580
1,381
536
305
1,381
272
9,205
18,200
18,200
145
BEGINNING CASH BALANCE
21,127
18,427
TOTAL CASH OUTFLOW
Tax Payable
Interest
Principal
Loan Repaym ent:
Interest
Principal
Hire-Purchase Repaym ent:
Hire-Purchase Dow n Payment
Purchase of Fixed Assets - Others
Purchase of Fixed Assets - Land & Building
Fixed Assets
Other Pre-Operations Expenditure
1,800
300
Business Registration & Licences
Insurance & Road Tax for Motor Vehicle
600
Deposit (rent, utilities, etc.)
2
580
2,400
Other Expenditure
Pre-Operations
1,381
268
tailor
Salaries, EPF & SOCSO
Carriage Inw ard & Duty
Payment of Account Payable
Cash Purchase
Operations Expenditure
marketing staff
Salary/EPF/SocSo
1,381
272
Marketing Expenditure
9,205
17,800
17,800
office management
38,981
34,800
1
salary/EPF/SocSo
Adm inistrative Expenditure
CASH OUTFLOW
TOTAL CASH INFLOW
Collection of Accounts Receivable
Cash Sales
Loan
Capital (Cash)
CASH INFLOW
MONTH Pre-Operations
3
28,400
24,418
3,982
14,418
145
580
1,381
1,146
308
1,381
272
9,205
18,400
18,400
4
32,400
28,400
4,000
14,500
145
580
1,381
1,226
310
1,381
272
9,205
18,500
18,500
5
36,096
32,400
3,696
14,504
145
580
1,381
1,236
305
1,381
272
9,205
18,200
18,200
6
39,405
36,096
3,309
14,491
145
580
1,381
1,229
298
1,381
272
9,205
17,800
17,800
7
42,442
39,405
3,037
14,463
145
580
1,381
1,206
293
1,381
272
9,205
17,500
17,500
8
FaSTME JEANS BAG
PRO FORMA CASH FLOW STATEMENT
45,995
42,442
3,552
14,448
145
580
1,381
1,182
302
1,381
272
9,205
18,000
18,000
9
49,639
45,995
3,644
14,456
145
580
1,381
1,189
303
1,381
272
9,205
18,100
18,100
52,871
49,639
3,231
14,469
145
580
1,381
1,209
296
1,381
272
9,205
17,700
17,700
10
56,014
52,871
3,143
14,457
145
580
1,381
1,198
295
1,381
272
9,205
17,600
17,600
11
59,763
56,014
3,749
14,451
0
145
580
1,381
1,182
305
1,381
272
9,205
18,200
18,200
12
59,763
59,763
195,218
0
1,740
6,960
18,427
1,800
300
600
2,400
16,570
12,538
3,587
16,572
3,264
110,461
254,981
216,000
34,800
4,181
TOTAL YR 1
121,453
59,763
61,689
175,911
0
1,392
6,960
2,400
16,570
14,346
3,945
16,572
3,264
110,461
237,600
237,600
YEAR 2
217,104
121,453
95,651
177,589
0
1,044
6,960
2,400
16,570
15,781
4,537
16,572
3,264
110,461
273,240
273,240
YEAR 3
FaSTME JEANS BAG
PRO-FORMA PRODUCTION COST STATEMENT
Year 1
Raw Materials
Opening Stock
Current Year Purchases
Ending Stock
Raw Materials Used
Carriage Inward
Year 2
Year 3
0
17,933
19,726
22,685
17,933
19,726
22,685
17,933
19,726
22,685
Salaries, EPF & SOCSO
Factory Overhead
Depreciation of Fixed assets (Operations)
tailor
2,307
16,570
2,307
16,570
2,307
16,570
Total Factory Overhead
Production Cost
18,878
36,811
18,878
38,604
18,878
41,563
FaSTME JEANS BAG
PRO-FORMA INCOME STATEMENT
Year 1
Sales
Year 2
Year 3
216,000
237,600
273,240
36,811
38,604
41,563
Less: Cost of Sales
Opening Stock of Finished Goods
Production Cost
Less: Ending Stock of Finished Goods
0
Gross Profit
0
0
36,811
38,604
41,563
179,189
198,996
231,677
113,725
113,725
113,725
16,572
16,572
16,572
2,400
2,400
2,400
Less: Enpenditure
Administrative Expenditure
Marketing Expenditure
Other Expenditure
Business Registration & Licences
300
Insurance & Road Tax for Motor Vehicle
Other Pre-Operations Expenditure
Interest on Hire-Purchase
Interest on Loan
1,740
1,392
1,044
Depreciation of Fixed Assets
1,458
1,458
1,458
Total Expenditure
136,195
135,547
135,199
Net Profit Before Tax
42,995
63,449
96,479
Tax
Net Profit After Tax
Accumulated Net Profit
0
42,995
42,995
0
63,449
106,444
0
96,479
202,923
69
FaSTME JEANS BAG
PRO-FORMA BALANCE SHEET
Year 1
Year 2
Year 3
ASSETS
Non-Current Assets (Book Value)
Land & Building
furniture
office equipment
1,800
2,400
3,040
1,800
1,800
2,280
1,800
1,200
1,520
256
16
120
192
12
90
128
8
60
machinery
maintenance
8,430
800
6,322
600
4,215
400
Other Assets
Deposit
600
600
600
17,462
13,696
9,931
59,763
121,453
217,104
59,763
121,453
217,104
77,825
135,749
227,635
4,581
42,995
47,576
4,581
106,444
111,025
4,581
202,923
207,504
27,840
20,880
13,920
27,840
20,880
13,920
1,809
3,243
5,610
77,225
135,149
227,035
signboard
flyers
brochure
Current Assets
Stock of Raw Materials
Stock of Finished Goods
Accounts Receivable
Cash Balance
TOTAL ASSETS
Owners' Equity
Capital
Accumulated Profit
Long-Term Liabilities
Loan Balance
Hire-Purchase Balance
Current Liabilities
Accounts Payable
TOTAL EQUITY & LIABILITIES
70
FaSTME JEANS BAG
FINANCIAL RATIO ANALYSIS
Year 1
Year 2
Year 3
LIQUIDITY
Current Ratio
Quick Ratio (Acid Test)
33
33
EFFICIENCY
Inventory Turnover
37
37
#DIV/0!
39
39
#DIV/0!
#DIV/0!
PROFITABILITY
Gross Profit Margin
Net Profit Margin
Return on Assets
Return on Equity
82.96%
19.90%
55.25%
90.37%
83.75%
26.70%
46.74%
57.15%
84.79%
35.31%
42.38%
46.49%
SOLVENCY
Debt to Equity
Debt to Assets
Time Interest Earned
62.32%
38.10%
24
21.73%
17.77%
45
9.41%
8.58%
91
FINANCIAL RATIOS
Current Ratios
Quick Ratios
40
39
39
38
38
37
37
36
36
Ratio
Ratio
40
35
35
34
34
33
33
32
32
31
31
30
1
2
3
30
1
2
Year
3
Year
Inventory Turnover
Gross Profit Margin
1
85.00%
1
84.50%
1
1
84.00%
Percent
Times
1
1
0
83.50%
83.00%
0
0
82.50%
0
0
82.00%
1
2
Year
3
1
2
3
Year
Net Profit Margin
71
Net Profit Margin
Return on Assets
60.00%
40.00%
35.00%
50.00%
30.00%
40.00%
Percent
Percent
25.00%
20.00%
30.00%
15.00%
20.00%
10.00%
10.00%
5.00%
0.00%
1
2
0.00%
3
1
2
Year
3
Year
Debts to Equity
Return on Equity
70%
100.00%
90.00%
60%
80.00%
50%
70.00%
Percent
Percent
60.00%
50.00%
40.00%
30.00%
40%
Serie…
30%
20%
20.00%
10%
10.00%
0.00%
1
2
0%
3
1
Year
2
3
Year
Debts to Assets
Times Interest Earned
45%
100
40%
90
80
35%
70
30%
Times
Percent
60
25%
50
20%
40
15%
30
10%
20
5%
10
0%
1
2
Year
3
0
1
2
3
Year
72
CONCLUSION
73
10.1 Introduction
There are a lot of benefits in doing business. First of all, we will get a financial
reward. In spite of high financial risk, running our own business gives us a chance
to make more money than if we were employed by someone else. Next, we will
get learning opportunities. As a business owner, we’ll be involved in all aspects of
our business. And lastly, we will get a creative freedom and personal satisfaction.
As a business owner, we’ll be able to work in a field that we really enjoy, and we’ll
gain personal satisfaction from watching our business succeed.
10.2 Project Viability
This business is viable to proceed because our business is the only Jeans Bag
store that available in Bandar Pusat Jengka. Because of that, we have less
competitors and may get many customers. Besides, we will always follow the
trends for our product to make sure teenagers and students become interested
and satisfied with it.
10.3 Justification
Our business should be proceeding because we expect a high demand from
the customers as we provide a quality product. Next, we know that our product will
get a high profit because there is no others shop that offer what we have in
FaSTME Jeans Bag company.
74
APPENDICES
75
76
77
78
PARTNERSHIP AGREEMENT
79
PARTNERSHIP AGREEMENT
With reference to the Partner Act 1961 (Revise 1974), this agreement is lawfully made
between the partners of FaSTME Jeans Bag. The reason of this partnership agreement
is made in order to make sure that all the business operation run accordingly to the
schedule, avoid any misunderstanding that might happened during the operation of the
business and the main objective of the business can be achieved.
It is hereby declared that all partners as mentioned below have witnessed and agreed to
accept all terms, conditions and regulation stated as follow:
This partnership is registered under the name of FaSTME Jeans Bag,
The partners have also agreed to accept the position in FaSTME Jeans Bag as enlisted:
ERINA SURAYA BINTI JAMAL ABD NASIR (GENERAL MANAGER)
NAATASYA BINTI MAT PUAT
(ADMINISTRATION MANAGER)
MUNIRAH AINI BINTI AZHAR
(MARKETING MANAGER)
FATIN SYAHIRA BINTI AHMAD
(OPERATIONAL MANAGER)
FATHIN NAZREEN BINTI NORDIN
(FINANCIAL MANAGER)
It is also agreed that all profit sharing will be based on the capital contribution of each
partners. Should the company suffer any loss, of which the negligence cause by anyone
of the partners, that partner should be responsible for the loss.
All the money owns by the partnership or money received on behalf of the partnership
must be credited to the agreed partnership current bank account. It is also agreed that if
in case where any of the partners want to withdraw from the partnership, then she/he
must give a one-month notice to the partners.
80
Each of the partners:
-
Must have and act in good manners and has faith and be trustworthy between
each partner in all business matters.
-
Must give full efforts in any way for the success of the company.
-
Must keep all information relating to the business confidential from people outside
the business organization.
-
Must settle all personal problems without involving the company.
All the partners are strictly forbidden (except with the consent from all the partners)
to:
-
Give or transfer own share to the public or people outside the business
organization.
-
Accept or borrow or lend money owned by the business to other people outside
the business organization except regarding on business matter.
-
Accept or borrow money owned by the business for personal use. If any partners
have borrowed any money or assets, payback or recovery must be made in one
month from the date borrowed without any interest.
-
Dispose any assets or any liability such as debts, money or others owned by the
partners.
-
If any partner dies or paralyzed that may bring difficulty for his/her to perform
her/his work, the next-of-kin must give a written notice in between 45 days to other
partners if he/she wants to become a partner, if there is no notice between those
periods, the next-of-kin will receive back the capital contributed by deceased or
the paralyzed partner according to agreed proportion.
This agreement can be changed or dissolved if agreed by all the partners under a
memorandum signed by all the partners.
It is also agreed that any action that may not fall under the agreement can be taken action
or revised under the partnership act 1961 (Revised 1974).
81
Verify, I am Erina Suraya Binti Jamal Abd Nasir and my partners, Naatasya Binti Mat
Puat, Munirah Aini Binti Azhar, Fatin Syahira Binti Ahmad and Fathin Nazreen Binti
Nordin agreed to be part of the partner for FaSTME Jeans Bag company which located
at No. 48 Jalan BDJS 5, Blok Dagangan Jengka, Jalan sejahtera, Bandar Jengka 26400,
Bandar Tun Razak, Pahang will give the amount of RM836.20 from each of the partners
to this company. We promise to obey the rules and regulation as stated in FaSTME Jeans
Bag.
Yours Truly,
______________
ERINA SURAYA BINTI JAMAL ABD NASIR
General Manager
990907-10-5800
______________
NAATASYA BINTI MAT PUAT
Administration Manager
990325-06-5036
______________
MUNIRAH AINI BINTI AZHAR
Marketing Manager
990304-06-5184
82
_________________
FATIN SYAHIRA BINTI AHMAD
Operational Manager
990613-01-6888
__________________
FATHIN NAZREEN BINTI NORDIN
Financial Manager
990814-06-5280
83