Executive summary
MoveIt’s business model aims to provide professional moving services to home and office relocations within
the Klang Valley, providing them with professionally trained staff and high-quality packaging materials.
MoveIt has a vision of becoming the best moving company within Southeast Asia.
The industry
Data has shown that unemployment rates have lowered, indicating that more people will have capabilities to
purchase housing. In addition, interest rates are high, which may be an indicator that high income Malaysians
will purchase new housing as investments, increasing the demand of moving services.
MoveIt’s business model is unperturbed by new government policies, which eases operations of MoveIt. The
high level of differentiation of MoveIt’s services compared to other moving services allows MoveIt to hold a
strong position in the moving service provider market.
Marketing plan
MoveIt will implement market segmentation and convenience-based positioning, and offer tailored services
and specialized marketing to target premium customers. Their potential market size is estimated at 43,100
people per year, with projected first-month sales revenue of RM64,500. MoveIt offers packing, unpacking,
storage, and cleaning services and uses AIs for real-time updates and automated customer service. Their
pricing strategies include dynamic pricing and bundling pricing, while advertising through social media and
word-of-mouth marketing.
Management plan
MoveIt will be led by two levels of management, the CEO and four department managers, including finance,
marketing, operations, and administration. The middle managers in the company make up the second level of
management and serve as department managers. LLCs in Malaysia offer limited liability protection, flexible
management structures, and tax benefits, making them a popular choice for entrepreneurs. They are regulated
by the Companies Commission of Malaysia and required to comply with the Companies Act 2016 by filing
annual financial statements, annual returns, and paying taxes. LLCs provide personal asset protection for
owners and have pass-through taxation, simplifying the tax process for small businesses.
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Finances
The total financing required for MoveIt will be RM509,899, with RM298,059 being paid-in capital and
RM211,840 from bank loans.
The projected revenue and profit of MoveIt is as follows:
2023/2024
2024/2025
2025/2026
Sales Revenue
RM795,644
RM896,551
RM1,071,933
Net profit
RM71,983
RM172,847
RM299,068
The total liabilities will be reduced to RM70,330 by the end of the financial year 2025/2026.
The total shareholders’ equity by the end of financial year 2025/2026 will be RM841,956, which indicates
that MoveIt is projected to generate cash of RM543,897 by the end of year 3.
Operations
MoveIt provides moving services and rents a warehouse instead of a physical store. The office will be located
in Laman Damai Kepong, Kuala Lumpur, with a monthly rental of RM2,500 for a 1313 sq-ft Ground Floor
Shop lot. MoveIt’s operating hours is 9AM to 7AM. The company offers 24-hour services during working
hours, assesses clients' needs, provides a quote, schedules the move, packs and loads goods, transports them,
unloads them, and helps clients unpack if requested.
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Table of contents
NO. Content
1.
Introduction
2.
Industry analysis
3.
2-3
b. PORTER’S 5 Forces Analysis
4-6
Marketing
a. Research and analysis
7-8
b. Market Trends
8
c. Basis of revenue projections
8
d. Competitors
9
e. Marketing Mix (Product, Place, Price, Promotion)
10-11
Operations
5.
Management plan
7.
1
a. PEST Analysis
4.
6.
Page(s)
12-14
a. Management Team
15-19
b. Legal Structure
20
c. Organisational chart
21
Finances
a. Sales revenue, profit and loss
22-23
b. Cashflow
24
c. Assets, liabilities and equity
24
Potential risk factors
a. Potential Risk Factors / Critical Risks Analysis
25-26
b. Risk Management Strategies
27-28
8.
Implementation plan
29
9.
References
30-33
10.
Appendices
34-59
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1.0 Introduction
"MoveIt" is a professional and reliable moving company that provides top-notch moving services to both
residential and commercial clients. It is led by CEO Mr. Terry Wan and supported by a team of four
managers, including Finance Manager Mr. Lim Wai Seng, Marketing Manager Ms. Wong Sin Yu,
Operation Manager Ms. Lee Annie, and Administration Manager Ms. Soo How Yi. The company is
dedicated to providing top-notch moving services at reasonable rates, and is staffed by highly skilled and
well-trained professionals who ensure a seamless and stress-free transfer process. "MoveIt" is
headquartered in Kuala Lumpur, Malaysia.
1.1 Vision
To be the best moving company within Southeast Asia.
1.2 Mission
To provide customers with the best moving services with professionally trained movers.
1.3 Goals
1.3.1 Expand our client base by 25% within the next five years.
1.3.2 Increase our revenue by 25% within the next five years.
1.3.3 Reduce our operating costs by 10% within the next year through a combination of strategies.
1.4 Potential of business
In the moving industry, the application needs improvement in terms of core functionality, real-time
feedback, and customer service support. Additionally, inexperienced moving workers can cause damage to
goods or furniture during transportation due to lack of training. Moving companies must provide trained
staff to ensure satisfactory transportation of goods. The moving industry presents a lot of potentials for
growth and success for companies that are willing to invest in their operations, adopt new technologies, and
provide high-quality services to their customers.
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2.0 Industry Analysis
2.1 PEST Analysis
The PEST analysis is a valuable strategic tool utilized to evaluate external macro environmental factors
such as Political, Economic, Social, and Technological components that could potentially impact a business
or organization.
2.1.1 Political
2.1.1.1 Labour Law
It is mandatory for all businesses to implement labour laws such as setting minimum wage and overtime
pay. In Malaysia, the national minimum wage has been deferred to July 2023, with a 25% increase from
RM1,200 to RM1,500. Compliance with labour laws is crucial for moving companies to avoid legal and
financial repercussions and to maintain a positive relationship with their employees.
2.1.1.2 Government Policy
Tax incentives can drive demand for moving services, while licensing and regulation can affect the cost of
doing business and the competitive landscape. Employment regulations can affect the quality of services
provided, and trade policies can affect the cost of materials and resources. Moving companies need to stay
abreast of government policies and regulations to be prepared to adapt to changes in the policy landscape.
2.1.2 Economics
2.1.2.1 Interest Rate
Interest rate has increased. Bank Negara Malaysia's decision to raise the overnight policy rate (OPR) by
25 basis points to 3% on May 3 2023. (Theedgemarkets, 2023) Interest rates can impact the housing market,
which in turn affects the demand for moving services. When interest rates are high, people may purchase
new housing as assets to invest in.
2.1.2.2 Unemployment Rate
The unemployment rate has slightly decreased to 3.5% as of February 2023, according to recent data
released by the Department of Statistics Malaysia. When the unemployment rate is low, it would highly
benefit the country’s overall economy. This decrease indicates increased stability among individuals,
resulting in a higher likelihood of house sales. As a result, the demand for moving services is expected to
increase.
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2.1.3 Social
2.1.3.1 Career Attitudes
In contemporary times, employees tend to place high value on compensation and benefits packages in their
professional trajectory. With the decrease in unemployment rates, companies are finding themselves in a
position of greater bargaining power when it comes to negotiating salaries while offering benefits. This
trend is expected to result in decreased labour and operating costs for moving companies.
2.1.3.2 Safety Emphasis
Moving companies place a strong emphasis on providing extensive safety training to the employees,
investing in specialized equipment, and having strict safety procedures in place to ensure customers and
employees’ safety. Moving companies also have insurance policies in place to protect their customers'
belongings in case of loss or damage.
2.1.4 Technology
2.1.4.1 Technology Awareness
Technological innovations in the moving industry include, from online booking and tracking systems
to electronic inventory management and GPS tracking, leveraging technology to provide real-time
updates on the status of shipments and optimize routes for faster and more efficient deliveries. Mobile
apps further enhance the customer experience, allowing for seamless communication between
customers and their movers. These advancements have become a basic requirement for moving
organisations.
2.1.4.2 Technological Innovation
Artificial Intelligence (AI) have the potential to optimize various aspects of the moving process,
including inventory management and route planning. For instance, AI can assist in inventory
management by alerting moving companies to restock items based on their forecasted inventory levels.
Furthermore, AI can optimize routes and schedules by analysing traffic conditions and past moving trips
to plan the most efficient route for each trip.
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2.2 PORTER'S 5 Forces Analysis
Threat of new entrant
Strong
Threat of substitute product
Weak
Bargaining power of suppliers
Weak
Rivalry among existing competitors
Strong
Bargaining power of buyers
Weak
2.2.1 Threat of new entrants
a) Government policies
The government policies are lenient towards the moving industry. Local moving companies are only
required to obtain one license from the Ministry of Domestic Trade and Consumer Affairs (MDTCA),
and adhering to guidelines related to pricing, billing, and insurance. Therefore, threat of new entrants is
high.
b) Barriers of entry
The moving industry that is known to have a relatively low barrier to entry, companies can enter the
market easily without the need of hard to obtain license or prior experiences. Although purchasing
moving lorries require larger capital, companies can choose to rent lorries. Therefore, threats of new
entrants are strong.
Conclusion, the threats of new entrants are high in the moving industry because government policy and
barriers of entry are low
2.2.2 Threat of Substitute Products
a) Buyer propensity to substitute
The moving industry has a low propensity for buyers to substitute as moving services are specialized
and not easily replaceable. Even if automated moving services were to become highly detailed, physical
moving services would still be considered irreplaceable.
b) Perceived level of product differentiation
The moving industry presents a significant degree of product differentiation, as it offers local and longdistance relocation services to customers, aiding them in the transportation of their personal effects
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within and across various cities and states. For instance, moving companies specialize in the
transportation of bulky items such as pianos and heavy furniture.
Conclusion, the threat of substitutes products is low because of high perceived level of product
differentiation and low buyer propensity to substitute.
2.2.3 Bargaining Power of Suppliers
a) Number of suppliers
Number of suppliers is more than the number of buyers therefore bargaining power of suppliers is weak.
As buyers are very niche in this industry because buyers have broader choices. To stand out, moving
companies often specialize in certain types of moves, such as long-distance, international, or commercial
moves. This specialization further narrows down the pool of potential customers and creates a more
niche market.
b) Uniqueness of each supplier’s product
As the moving industry provides similar services, the bargaining power of suppliers is weak. This is due
to the service only includes physically moving a customer’s belongings from one location to another
and using similar methods for transporting items. Hence, competitors such as Hello Movers and My
Movers sets market prices relatively low, from RM 230 (Appendix 1 & 2) to retain customer base with
low prices.
Conclusion, suppliers have weak bargaining power due to their large numbers and the low uniqueness
of their products, which may limit their ability to negotiate in the market.
2.2.4 Rivalry Among Existing Competitors
a) Brand loyalty
Customers will not have loyalty towards a moving company, because customers will determine the
quality of the moving services based on a trip, if it is bad, customers will not stay with the company.
This is because of the low volume and high-risk nature of business, customers will change to another
mover once they receive bad service, to lower the perceived risk. Therefore, the rivalry between
competitors is strong.
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b) Industry growth
There is low growth in the moving industry because the moving industry is often considered to have
limited differentiation between companies and services. Many moving companies offer similar services,
such as packing, loading, and transporting goods, take comparison between packages offered by
Eazymover2u (Appendix 3), Mover2u (Appendix 4), and AKMOVERS (Appendix 5).
Conclusion, the intensity of competition among current players in the market is high due to low industry
growth and brand loyalty.
2.2.5 Bargaining Power of Buyers
The buyers are homeowners and office owners
a) Size of each customer's order
Due to the time-sensitive and energy-intensive nature of the moving process, it is a demand that is often
fragmented. As a result, buyers are willing to invest more in order to ensure their move is executed
efficiently and on schedule. This willingness to pay premium prices reduces the bargaining power of
buyers.
b) Buyer's information availability
In light of the internet's progress, the majority of moving companies now have an online presence,
making their information readily available to prospective customers. This allows buyers to access
aggregated data and conduct thorough analysis and comparison of various moving companies, enabling
them to assert their bargaining power.
Conclusion, bargaining power of buyers is low to moderate because the moving industry is a small
volume business hence the orders by customers are small.
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3.0 MARKETING PLAN
3.1 Research and analysis
3.1.1 Market segmentation
For a moving company that focuses on premium customers, segmenting the market can help ”MoveIt”
identify different groups of consumers with distinct needs and preferences, enabling the company to develop
tailored services and marketing efforts for each group. High net worth individuals, busy professionals, luxury
homeowners, corporate relocations, and international moves are possible market segments for “MoveIt”
targeting premium customers. (Webfx n.d.) Each of these segments requires different levels of service and
expertise, and by identifying their unique needs, “MoveIt” can differentiate itself from competitors and
provide more value to customers. Moreover, by offering specialized services and catering to the unique
requirements of these market segments, “MoveIt” can build a reputation for excellence, improve customer
satisfaction, and generate more revenue, resulting in a more effective and efficient use of resources.
3.1.2 Target Market: Based on marketing segmentation
“MoveIt” targets premium customers, these customers have higher expectations for the level of service they
receive and may require more personalized attention. Premium customers have a higher income and net worth,
which means they have more disposable income to spend on moving services in “MoveIt”. Premium
customers for “ MoveIt” may be busy professionals who don't have the time or desire to pack and move their
belongings themselves. They may be individuals who lead busy lives and prefer to leave the work of packing,
moving, and unpacking to the experts. These customers may also have larger homes or more valuable
belongings that require specialized packing and handling. They may require extra care to ensure that their
belongings arrive at their destination undamaged (Tapalaga 2019).
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3.1.3 Positioning
The convenience-based positioning strategy of “MoveIt” focuses on providing easy and hassle-free moving
services to customers. This strategy is based on the idea that customers are willing to pay more for
convenience and time-saving services. To implement this strategy, “MoveIt” may offer a range of services
designed to make the moving process as convenient as possible. The company may also focus on making the
booking process as easy as possible, with online booking systems and flexible scheduling options. The
convenience-based positioning strategy aims to position the moving company as a hassle-free and reliable
option for customers who are looking for a stress-free moving experience. ( Ccplus 2021)
3.2 Market trends
Between 2018 and 2023, the US Moving Services market size increased 1.1% annually on average. As of
2021, the trend was towards steady growth due to an increase in demand for moving services, driven by
factors such as urbanization, online commerce, and the COVID-19 pandemic. Additionally, the COVID-19
pandemic led to a surge in demand for moving services as people moved to larger homes or out of urban
areas. However, it is important to keep in mind that market trends are subject to change and can be influenced
by a variety of factors. (Michael 2020)
3.3 Basis of revenue projections
According to previous research on the population of Klang Valley, Malaysia has a total of 8.62 million people,
out of which 862,000 people are interested in moving their homes or offices. Based on the information, we
can estimate the company's potential market size would be 5% of Malaysia's population, equivalent to 43,100
people per year. Additionally, we can expect to serve around 862 customers annually and 72 customers per
month who require professional moving services. Therefore, the company's first-month sales revenue is
projected to be approximately RM64,500. As the demand for moving services grows across Malaysia, more
people will be able to have good experiences from moving services.
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3.4 Competitors:
Name
Eazymover2u
Mover2u
Services
-Lesser variety of - Lorry rental
moving services
AKMOVERS
Hello Movers
My Movers
- Wide variety of - Wide variety of - Lesser range of
- Support all types moving services
- Does not include of office relocation -
Dismantle
moving services moving options
& - Dismantle & -
Dismantle
&
rearrange service - Lesser variety of assemble furniture assemble
assemble furniture
- Does not have moving services
- Does not include
-
Included furniture
international
- Does not include rearrange service
moving
rearrange service -
-
Included rearrange service
International rearrange service - Does not have
- Does not have moving
-International
international
international
moving
moving
From RM 230
From RM 230
moving
Price
From RM 600
Location
Within
From RM 800
west KL & Selangor
Malaysia
From RM 1997
KL, Selangor & KL & Selangor Within
East Malaysia
Target
Low-to-medium
Medium
Customers
income level
level
Klang
Valley area
income High income level All income level All income level
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3.5 Marketing Mix
The objectives and goals of MoveIt is to be the best moving company within Southeast Asia and provide
customers with the best services. By achieving the following goals to strengthen and expand business plans.
Firstly, MoveIt wishes to expand its client base and increase revenue by 25% within the next five years by
applying the SMART principle. MoveIt will offer specialized services and cater unique requirements for
market segments. By doing so, brand reputation and competitive advantage will be increased and achieve
goals sooner. (Michael 2017)
Also, MoveIt wants to reduce operating costs by 10% within the next year through a combination of strategies
for business survival. By reducing costs, financial downturns can be weather and continue operating despite
market challenges.
3.6 Product
3.6.1 Product Features
Packing and Unpacking service is one of the features and functions that are available for the customer.
“MoveIt” provides assistance in packing and unpacking belongings, ensuring that items are safely transported
from one location to another. The company may also offer additional services, such as storage or cleaning, to
differentiate themselves from competitors.
3.6.2 Product Differentiation
MoveIt is leveraging the power of Artificial Intelligence (AI) to enhance its customer service by automating
the Q&A section of its website, providing customers with instant and accurate responses to their queries.
MoveIt stands out from its competitors in the moving company industry by leveraging its advantage of being
the first to identify the needs and preferences of both existing and potential customers.
3.7 Place
3.7.1 Distribution channel
“MoveIt” application makes it easier for customers to book and manage their moving services at their own
convenience, without having to make phone calls or visit an office in person. It also help the moving company
provide a better overall customer experience, as customers are kept informed and updated throughout the
entire moving process.
3.7.2 Advantages
Through the distribution channel, “MoveIt” application can provide real-time updates to customers about the
status of their move, such as the location of the moving truck or the estimated time of arrival. Real-time
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updates are notifications or alerts that are sent to the customer's mobile device through the moving company's
application, providing them with up-to-date information on the status of their move.
3.8 Pricing strategies
3.8.1 Dynamic pricing
The price of moving services is usually determined by factors such as distance, the weight of the items being
moved, and the level of service required. A longer distance and more of heavier items will typically result in
higher price as it requires more labor and fuel. In addition, price will be affected by level of service. For
example, an exclusive package will be more expensive than a budget package where the customer requires
more service and moving labor.
3.8.2 Bundling pricing
This includes offering multiple services together at a discounted price. MoveIt offers additional services at a
lower price after customers purchase a package. This strategy is often used to increase the value proposition
for the customer and encourage them to purchase more items. MoveIt can build customer loyalty by using
bundling pricing strategies because it can demonstrate that they understand their customers' needs and are
willing to provide them with the best value possible.
3.9 Promotion
3.9.1 Social Media
MoveIt will advertise their services through social media such as running targeted ads and websites for
customer reviews and testimonials. MoveIt can use the targeting options offered by social media platforms to
reach potential customers who may be interested in their services. They can set targeting criteria based on
location, age, interests, and other factors. Satisfies customers will be encouraged to leave their reviews on
MoveIt website to build trust with potential customers.
3.9.2 Word-of-mouth marketing
This involves encouraging customers to spread the word about a product or service to their friends, family,
and colleagues at their house warming after the moving job is done. By providing excellent service, asking
for referrals, and encouraging reviews, MoveIt can create a strong network of satisfied customers who are
eager to spread the word about their services. It is often considered one of the most effective forms of
promotion, as it relies on personal recommendations and trust.
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4.0 Operation Procedure
4.1 Basic Operations:
All employees are required to be present during the office hours on weekdays, which are from 8:30am to
7:00pm, in order to fulfill their assigned duties. The company "MoveIt" will provide 24 hours services
everyday working hours, and during the employees' working hours, customer requirements will be attended
to.
4.2 Business Procedures:
The company will assess the client’s needs and provide a quote for their job. Once the client has accepted the
quote, the company will schedule the move and allocate resources like vehicles and personnel. The company
will pack the client's goods surely using appropriate materials and techniques to ensure safe transportation.
They may also provide packing service to the client if required. The company will load the packed goods
onto their vehicles carefully and efficiently to minimize the risk of damage during transportation. The
company will transport the goods to the new location, taking care to comply with relevant laws and
regulations and ensuring the safety of then goods and personnel. The company will unload the goods at the
new location, taking care to place them in the correct rooms and handle them with care to prevent damage.
After unloading, MoveIt will help clients unpack if they have additional requests.
4.2.1 Transaction Processing:
Assessment
Booking
Packing
Loading
Unpacking
Unloading
Transportation
4.3 Personnel Needs
The table indicates personnels and roles worked with lower monthly salaries as MoveIt is at its start-up stage.
Annual increments of salaries and bonuses will be provided for excellent performances of each employee and
profitability of MoveIt.
Personnel
Roles
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Chief Executive Officer
Number of pax: 1
Monthly Salary: RM 4,000
Finance Manager
Number of pax: 1
Monthly Salary: RM 3,200
Marketing Manager
Number of pax: 1
Monthly Salary: RM 3,200
Operation Manager
Number of pax: 1
Monthly Salary: RM 3,200
Administration Manager
Number of pax: 1
Monthly Salary: RM 3,200
4.4 Equipment needs
No
Item
Unit
Price per Unit Appendix
(RM)
6
1
5000kg
2019
BISON
AUMARK 1
65,000
7
99,800
8
BJ1041
2
7500kg 2018 Isuzu NPR75UKH
1
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3
Moving dolly
4
200
9
4
Moving straps
10
50
10
5
Toolset
4
150
11
6
Laptop
7
2,500
12
7
Headset
2
300
13
8
Mobile phone (for moving staff)
2
1,500
14
9
Work desk with drawer
7
600
15
10
Office chair
7
350
16
11
Pantry table
2
100
17
12
Pantry chair
8
67
18
13
Freestanding partition
10
500
19
14
Water dispenser (Midea)
1
119
20
15
Wall air conditioner
2
1,000
21
16
Ceiling fan
4
300
22
17
CCTV camera
4
200
23
18
Wi-fi 6 router (TP-Link)
1
449
24
19
9kg ABC dry powder fire extinguisher 4
145
25
20
Smoke Detector (FireHawk Safety 4
60
26
Products)
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5.0 Management Plan
5.1 Management Team
Chief Executive Officer (CEO)
Qualification: Diploma, Advanced/Higher/Graduate Diploma, Bachelor's Degree, Post Graduate Diploma,
Professional Degree.
Salary: RM 4,000
Job Description:
●
Have a keen insight, sensitive to internal and external business, and able to quickly translate into grounded
operational solutions.
●
Basic business acumen and organizational work flow.
●
Proven skills to manage large businesses and worked in matrixed organizations.
●
An ability to influence across the organization at multiple levels.
●
Strong desire to succeed, self-discipline and self-driven, with a sense of confidentiality.
●
Ability to communicate with other people
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●
Finance Manager
Qualification: Diploma, Advanced/Higher/Graduate Diploma.
Salary: RM 3,200
Job Description:
●
Financial planning: Developing and implementing financial plans that align with the company's overall
strategy and goals.
●
Budgeting: Creating and managing budgets for various departments and projects, monitoring expenses,
and ensuring that spending stays within budget limits.
●
Financial analysis: Analyzing financial data, identifying trends, and making recommendations to improve
the financial performance of the organization.
●
Cash flow management: Monitoring cash flow, managing accounts payable and receivable, and ensuring
that the organization has enough funds to meet its financial obligations.
●
Risk management: Identifying potential financial risks, developing and implementing risk management
strategies, and ensuring compliance with regulations and policies.
●
Investment management: Developing and implementing investment strategies that align with the
organization's goals and risk tolerance.
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Marketing Manager
Qualification: Diploma, Advanced/Higher/Graduate Diploma.
Salary: RM 3,200
Job Description:
●
Developing and implementing the organization's marketing strategy, including identifying target markets,
positioning, and messaging.
●
Managing and coordinating the activities of the marketing team, including advertising, public relations,
market research, and brand management.
●
Conducting market research to identify customer needs, preferences, and trends, and using this
information to develop effective marketing campaigns.
●
Creating and managing the marketing budget, and allocating resources to achieve the organization's
marketing objectives.
●
Developing and implementing digital marketing campaigns, including social media, email marketing, and
online advertising
●
Developing and maintaining relationships with key stakeholders, including customers, vendors, and
industry influencers.
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Operations Manager
Qualification: Diploma
Salary: RM 3,200
Job Description:
●
Make sure all operations are conducted in an appropriate, cost-effective method.
●
Promote an organizational culture that encourages efficiency in performance and great morale.
●
Make crucial judgements about strategy, planning, and policy.
●
Determine the company's issues and prospects, then address them.
●
Aid in employee-management with team communication.
●
Maintain a safe and healthy working environment through establishing, adhering to, and enforcing
standards and procedures, as well as adhering to legal restrictions.
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Administration Manager
Qualification: Diploma, Advanced/Higher/Graduate Diploma.
Salary: RM 3,200
Job Description:
●
Managing the daily operations of the administrative department, including managing staff, delegating
tasks, and ensuring that all operations run smoothly.
●
Developing and implementing administrative policies and procedures to ensure compliance with
organizational objectives and regulatory requirements.
●
Managing and coordinating administrative functions such as facilities management, office maintenance,
procurement, and inventory control.
●
Overseeing the recruitment, selection, training, and development of administrative staff, and conducting
performance evaluations.
●
Monitoring and controlling budgets for administrative operations, including reviewing and approving
expenditures, and preparing regular financial reports.
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5.2 LEGAL STRUCTURE
A Limited Liability Company (LLC) also known as Sendirian Berhad (Sdn Bhd), combines the benefits of
partnerships and corporations. It offers limited liability protection to owners, and the company is a separate
legal entity. The SSM regulates LLCs in Malaysia, and they must comply with the Companies Act 2016.
LLCs file annual financial statements, returns, and pay taxes. They offer flexible management structures,
limited liability protection, and tax benefits, making them a popular choice for entrepreneurs.
One of the benefits of limited liability companies (LLCs) is their flexibility. LLCs offer limited liability
protection to their owners, meaning that their personal assets are safeguarded from the debts and liabilities
incurred by the company. This implies that if the LLC faces a lawsuit or debt, the owners' personal assets,
such as their homes and personal bank accounts, will not be exposed to risk. In LLCs or corporations, the
owners or shareholders are typically only liable for the amount of money or assets they have invested in the
company, and their personal assets are shielded from creditors and lawsuits related to the business.
Besides, pass-through taxation is another advantage of LLC. Pass-through taxation is a taxation approach that
enables businesses to avoid paying taxes at the business level. For LLCs, any profit or loss is passed on to
owners who include it in their personal tax returns and pay taxes at the individual level. This method is popular
with small businesses because it simplifies the tax process and reduces the administrative burden. On the
other hand, corporations that choose not to be taxed as S corporations are taxed at the business level and their
shareholders pay taxes on the income they receive. Although this method may be advantageous to larger
corporations, it can be more complex and time-consuming to manage than pass-through taxation.
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1.3 ORGANIZATIONAL CHART
Chairman(CEO)
Wan Jing Zhe
Finance Manager
Lim Wai Seng
Marketing
Manager
Wong Sin Yu
Operation
Manager
Lee Annie
Aministration
Manager
Soo How Yi
The diagram shown above is the organization chart of the ‘MoveIt’ company. A well-designed and easily
accessible organizational chart is an effective tool for increasing transparency and accountability in a
company's structure and processes. By providing a clear visual representation of the company's hierarchy and
job roles, it can also enhance productivity and promote collaboration among employees. There will be two
levels of management in the company. The Chief Executive Officer, CEO is the highest-ranking executive
in a company or organization responsible for making strategic decisions, managing operations, and ensuring
the company's overall success. The CEO is also responsible for setting the company's overall vision, mission,
and strategic goals, and developing plans to achieve them. The CEO reports to the board of directors and is
responsible for implementing the board's directives and leading the organization's employees towards
achieving its goals and objectives. (Maryville 2023)
The middle managers in the company make up the second level of management and serve as department
managers. The company has four main departments, which are the finance, marketing, operations, and
administration departments. Middle managers are responsible for translating the company's strategic goals
into operational plans and tactics that can be executed by their teams. Middle managers are also responsible
for resolving issues and conflicts within their teams or between different departments to ensure that the
company operates smoothly and efficiently. Middle managers play a critical role in implementing the
company's strategy, managing teams and resources, communicating with senior management, ensuring
compliance, resolving issues, and developing employees. (Indeed 2023)
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6.0 Financial
6.1 Sales revenue, profit and loss
6.1.1 Sales Revenue
The projected revenue generated by MoveIt per month is calculated by estimating 862 people out of 8,620,000
total population in the Klang Valley will use MoveIt’s services. Calculations in the “Financial Projections”
excel sheet indicates that with 72 monthly customers, and with a monthly sales increase of 0.5%, the total
revenue generated by MoveIt by the first-year totals up to RM795,643.77. The amount projected is then used
to estimate the sales revenue of the second and third year, increasing 1.00% and 1.50% per month
respectively. The total sales revenue of the second and third year is estimated to be RM896,551 and
RM1,071,933 respectively.
6.1.2 Cost of goods sold and gross profit
As MoveIt is mostly a service business, the cost of goods sold (excluding staff wages) is relatively low,
projected to be 10% of the sales revenue, including the purchase of packaging materials, cleaning products
and fuel for moving vehicles. After deducting the COGS, the gross profits of years 1, 2 and 3 is projected to
be RM716,079, RM806,896 and RM964,740 respectively.
6.1.3 Operating expenses
The pre-operating period of MoveIt is set to be 6 months, performing activities such as pre-project meeting,
location selection, securing funding, market survey, register business and obtain license, recruitment &
training, and pre-launch, which totals to RM22,200.
The operating expenses of MoveIt includes license fees, accounting, auditing, legal and secretarial fees,
insurances, rental, utilities, salaries, EPF and SOCSO, electronics & vehicle repair & maintenance,
advertising & promotion, depreciation and loan interest expense. These totals up to an annual expense of
RM607,153 due to the high labour cost and moving vehicle maintenance and repair costs. This amount is
projected to decrease to RM598,647 in the second year due to the lower interest expense, and increases
slightly in year 3 to be RM604,417 due to the expected increase in wages and utility fees.
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6.1.4 Operating profit
After deducting the operating expenses from the gross profit, the operating expenses are is lower due to the
addition of pre-operating expenses, which comes up to RM86,726. In the second and third year, with the
increase in sales revenue and without pre-operating expenses, operating profits increase significantly to
RM208,249 and RM360,323 respectively.
6.1.5 Net profit
The net profit of MoveIt in year 1, after deducting taxes of RM14,743 from the taxable income, the total
net profit projected is RM71,983. Similar to operating profits, this amount increases significantly in years
2 and 3, totalling up to RM172,847 and RM299,068 respectively.
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6.2 Cashflow of MoveIt
Initial cash available for MoveIt will be sourced from paid in capital and bank loan, with a total amount of
RM298,059 and RM211,840 respectively, totalling to RM509,899 total capital. On top of the pre-operating
expenses of RM22,200 mentioned earlier, there will be capital expenses of RM282,125 to be put into
renovations, moving vehicles and equipment, electronics, furniture & fittings, and other miscellaneous fixes
assets. Principal loan repayments and interest during the pre-operating period will also be calculated, with a
total of RM18,447 and RM6,126 respectively. RM171,941 will be the expected cash available for operations
starting with the first month (July 2023).
The ending cash balance, taking into account gross profit and operating expenses, the ending cash balance at
the end of the financial year 2023/2024 is projected to be RM281,044. Bringing forward this amount, the
ending cash balance of the financial years 2024/2025 and 2025/2026 is calculated to be RM457,804 at the
end of year 2 and RM758,259 at the end of year 3.
6.3 Assets, liabilities and equity
The total current assets of MoveIt in years 1, 2 and 3 are RM287,604, RM464,364 and RM764,819
respectively. This is the amount of total cash in addition with rental and utility deposits of RM6,560.
Non-current assets including renovations, moving vehicles & equipment, electronics and furniture & fittings
after depreciation comes up to RM237,239 in year 1, and RM192,353 and RM147,467 in years 2 and 3.
Projected liability of the company’s initial bank loan, totals up to RM154,801 at the end of year 1, and
RM107,467 and RM70,330 in years 2 and 3, provided that the company does not take another loan or delay
payments to suppliers.
Projected retained earnings is the same as the net profit of MoveIt, which is RM71,938, RM244,829 and
RM543,897 in years 1, 2 and 3 respectively. In addition to the initial paid-in capital of RM298,059, the total
shareholders’ equity totals up to RM370,042, RM542,888 and RM841,956 in years 1, 2 and 3 respectively.
Note: Analysis of ratios and breakeven analysis is written in the Financial Projections workbook.
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7.0 Potential Risk Factors / Critical Risks Analysis
7.1 Types of Risk Anticipation
7.1.1 Health Risk
The COVID-19 pandemic has significantly affected the global economy, industries, and businesses since
2020. The adverse impact includes the risk of economic collapse for all types of enterprises. The surge in
COVID-19 positive cases has led governments to implement measures such as the Movement Control Order
(MCO) in March 2020, further exacerbating the situation. An online survey conducted among Malaysian
SMEs revealed that most of them are experiencing tight cash flows, and it is expected that there will be no
cash inflow for at least three months after MCO due to various debts such as employee salaries, rent, and
statutory payments. Although the pandemic has subsided, the Ministry of Health has detected new virus
variants and has issued warnings of its resurgence.
7.1.2 Cybersecurity Risk
Network security risks refer to the potential failure of information technology systems due to external attacks,
often utilizing viruses and malware. These attacks can result in financial loss, interruption of services, and
damage to a company's reputation. With the growing reliance on electronic assets, especially in light of recent
global events, small and medium-sized enterprises have become prime targets for cyber attackers seeking to
exploit vulnerabilities such as data leakage, destruction, and denial of access. As “MoveIt” deals with
customer interactions through applications, we collect sensitive customer information such as ID numbers,
bank account details, credit or debit card information, and home addresses. It is critical for us to strengthen
our network security defenses to prevent any potential losses or breaches of confidential information.
7.1.3 Transportation Risk
Transportation vehicles are essential tools for moving companies, often tasked with moving a large volume
of items. Customers may opt to overload these vehicles in an attempt to save time and money. Unfortunately,
frequent overloading results in increased wear and tear, leading to serious mechanical issues over time.
Neglecting routine maintenance is also a common problem amongst drivers and staff, exacerbating these
issues. Due to the nature of heavy transportation, wear and tear are inevitable. As such, it is crucial to design
and implement a comprehensive inspection system for transport vehicles to prevent any losses to the company
or harm to employees.
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7.1.4 Reputation Risk
Reputation risk is any kind of danger that the reputation of an enterprise is constituted by some factors. These
risks will lead to the loss of customers or career prospects, damaged relationships, and economic losses. Many
reputational risks are difficult to find, which means that they may occur suddenly and unexpectedly. For
example, when “MoveIt” service or product performance is worse than the customer's expectation, then the
company’s reputation will be at risk. Moreover, consumers expect enterprises to have high-quality products
and ethical workplace culture. Product recall, customer data disclosure, or poor top management behavior
can easily bring negative effects to new enterprises. Therefore, “MoveIt” must design rules and strictly abide
by all the rules so as to avoid doing anything out of the rules and affecting the company's reputation.
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7.2 Risk Management Strategies
7.2.1 Health Risk
In order to prevent the spread of COVID-19 virus, the most basic action that the company can take is to
strictly abide by the sop formulated by the government. For example, staff always wear masks, disinfect
their hands, keep social distance and so on. Therefore, the company will distribute masks to employees to
remind them to wear them every day. In addition, in order to ensure that the goods delivered to customers
are safe and hygienic, company will assign employees to carry out good packaging and disinfection. All
these strengthening measures can effectively prevent COVID-19 from spreading in company daily business
operations.
7.2.2 Cybersecurity Risk
The risk management strategy implemented by the company to overcome the risk of network attacks is to
install and activate software and hardware firewalls. Setting up a firewall can prevent, detect, and delete
viruses and malware in your computer. In addition, the firewall can prevent malicious hackers and prevent
employees from browsing inappropriate websites. Install and update the firewall system on every
employee's computer, smart phone and networking device that can connect to the company network.
Furthermore, companies must also restrict employees' access to company data. Because, when accessing
data, the chance of human error is reduced, and human error is the number one information security threat.
Therefore, the company can only give employees access to the systems and specific information they need
for their work.
7.2.3 Transportation Risk
In fact, all countries have certain management legislation on heavy vehicles. Therefore, in order to ensure
that the goods will not cause safety problems to drivers and other road users, employees of the company
must ensure that the goods are not loaded beyond the weight of their own vehicles and are safe. In addition,
employees must also learn and study how to tie up the goods on the car. Moreover, employees must ensure
that their vehicles are regularly maintained. For example, oil change, tire replacement and comprehensive
daily maintenance inspection keep the vehicle at its best performance. Doing a series of simple inspections
before getting on the bus can prevent accidents and save lives.
7.2.4 Reputation Risk
In order to protect and improve companies’ reputation, companies can take measures to guard against
customer service to prepare for the worst case and prevent it before it happens. This is because social media
now allows customers to quickly spread any dissatisfaction with the company's products, services, or
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personal treatment of employees. Once these comments spread, it is an irreparable reputation risk, because
negative comments may leave a permanent digital footprint. Therefore, it is also very important for
employees to receive customer service training. It will also help the company's reputation to remind
employees of the importance of creating an environment of positive evaluation rather than negative
evaluation. In addition, front-line employees must handle things tactfully, such as handling customer
complaints professionally and correcting problems in time. The company must remind every employee to
consciously maintain the relationship with customers during the whole interaction process, so as to
effectively maintain the company's reputation.
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8.0 Implementation Plan
8.1 Pre-operating Timetable
Company is using a 6-month period which is from Jan 2023 to Jun 2023, to prepare for the “MoveIt”
business startup in July 2023. The activities in pre-operating timetable included Pre-project Meeting,
Location Selection, Scope and Goal Setting, Project Charter, Work Breakdown Structure, Budget, Risk
Management, Finding Supplier, Securing funding for the project, Market Survey, Register business and
obtain license, Renovation and Decoration, Purchasing Operational Equipment, Recruitment, Staff
Training, and Pre-Launch.
The activities of pre-project meeting, location selection, scope and goal setting, project charter, work
breakdown structure, budget, risk management from Jan 2023 to Feb 2023. This is to ensure that the internal
structure of the company's plan can be built in a short time for the next stage. Besides, finding supplier,
securing funding for the project, market survey, register business and obtain license will be from Feb to
mar 2023. Moreover, renovation and decoration will start from mar to May 2023, and which is done by
around 2 months. Furthermore, recruitment and writing user manual will be from November to December
2022. Afterwards, purchasing operational equipment will be 24 Apr 2023, while recruitment and staff
training will be 7 May to 18 Jun 2023, and which is within a month. Lastly, the last process of the preoperating activity which is pre-launch, and it will be using 7days from 18 to 25 Jun 2023.
Gantt Chart in Appendix 27 has provided a clearer picture of the pre-operating task in the six-month period.
8.2 Operating Timetable
Company have prepared a business operating period timetable for a year which from July 2023 to Jun 2024.
In this operating Gantt chart, the activities include "MoveIt" Launch, Monthly Business Review, Quarter
Report, Budget and Forecast, Marketing and Promotion Programs, Competitive Analysis, Advertising,
Repair and Maintenance, Training Program, Year-end Promotion, and Annual Business Review.
Gantt Chart in Appendix 28 has provided a clearer picture of the operating task in a one-year period.
8.3 Use of Gantt Charts is Highly Encourage
Gantt Chart has been prepared for pre-operation timetable (Appendix 27) and one-year operation timetable
(Appendix 28) for display.
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Appendix 1
Hello Movers’ Packages
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Appendix 2
My Movers’ Packages
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Appendix 3
Eazymover2u Pricing
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Appendix 4
Mover2u Pricing
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Appendix 5
Myakmovers Pricing
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Appendix 6
5000kg 2019 BISON AUMARK BJ1041
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Appendix 7
7500kg 2017 Mitsubishi-Fuso Fe85pg
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Appendix 8
Moving Dolly
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Appendix 9
Moving Strap
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Appendix 10
Toolset
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Appendix 11
Laptop
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Appendix 12
Headset
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Appendix 13
Mobile Phone
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Appendix 14
Office desk with drawers
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Appendix 15
Office Chair
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Appendix 16
Pantry table
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Appendix 17
Pantry chair
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Appendix 18
Freestanding partition
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Appendix 20
Water dispenser
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Appendix 21
Wall air-conditioner
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Appendix 22
Ceiling fan
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Appendix 23
Wifi 6 router
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Appendix 24
CCTV camera
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Appendix 25
9kg ABC dry powder fire extinguisher
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Appendix 26
Smoke Detector (FireHawk Safety Products )
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Appendix 27
Pre-Operating Timetable
Appendix 28
Operating Timetable
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