ent 300 presentation
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ENT 300
FUNDAMENTALS OF ENTREPRENEURSHIP
ELEGLOW ENTERPRISE
INTRODUCTION
Industry Profile The most important thing to realize about the scarf
industry is that it changes constantly. Trends and styles come and go with the seasons, so it
is necessary for those working in the industry to be adaptable and ready adjust to the latest market demand.
If it's design that you're interested in there are a few things to consider.
An entrepreneur must also have the ability to predict and understand what consumers want even if that differs from what he or she thinks is fashionable.
FACTORS IN SELECTIONG THE PROPOSSED BUSINESS
Availability of Resources
Market Demands
Current Business Trends
Good Location
Capital or Fund
PURPOSE OF THE BUSINESS
PLAN
PURPOSE OF THE BUSINESS PLAN
To give us a chance to view and evaluate the business
To make research and evaluate whether the business are having a profit or loss.
To venture capitalist, investor and banker in order to raise capital and obtain support for the venture
As guidelines of routine management in the business
To give management an opportunity for entrepreneur to assess, view & appreciate the business venture objectively, critically & practically
To evaluate the project viability and growth potential
COMPANY BACKGROUND
MAIN ACTIVITY
Our company main activity is providing and selling fashion scarf. Our scarf have an exclusively “Glow in the Dark” effect.
LOCATION OF THE BUSINESS
Physical Location
Our physical company location is located at Kelana Centre Point which is a great location that can help improve our sales and productivity.
Map of the location
ORGANIZATION PLAN
COMPANY VISION, MISSION AND OBJECTIVE
VISION
To be a famous fashion of scarf producer in the region and provides the needs of the global “Muslimah” community
MISSION
To be a market leader in the production and distribution of fashion scarf product in Malaysia within five years and in Asia within the 15 years
OBJECTIVE
To establish and operate an international standard production needed for fashion scarf product in Malaysia
ORGANIZATION CHART
General Manager / AdministrationMuhammad Abdullah
Marketing ManagerNabila binti Awang
Ahmad Kafli
Operating ManagerNur Illya Syaheera
bt Mat Rodzi
Worker
Deliveryman
Financial ManagerNur Amiza Sahira
binti Mad Zali
ORGANIZATION BUDGET
Item
Fixed
Assets
Expenses
Monthly
Expenses
(RM)
Other
Expenses
Furniture
and Fittings3000
Salaries 3200
EPF
Contributio
n
384
SOCSO 80
Telephone
Deposit 130
Total 3000 3664 130
MARKETING PLAN
PRODUCT DESRIPTION
Our company provide scarf for Muslims women. We bring the freshest scarf prints and “Glow in the Dark” designs.
Our scarfs are designed exclusively by our company because of the “Glow in the Dark” feature that we add.
The most common fabrics we select include polyester and silk to ensure the best and most comfortable fit possible.
The finishes we carry most often are chiffon, satin and crepe and most importantly our exclusive “Glow in the Dark” feature.
TARGET MARKETDemographic segmentation
We have decided to open our first branch in Kelana Centre Point, Petaling Jaya.
Our chosen location is basically a large town with a large number of populations and it shows huge potential to be developed ours product more.
Our companies is also located near others famous building, an educational institution and large portion of population, which is our primary target since most of our customer will consist of residential because scarf are always be the target for career woman to exchange their scarf on going to works
Our secondary target will be the teenager that lives around Kelana Jaya city. We mainly attract the teenagers that love in unique style of scarf.
MARKETING STRATERGY
Product
Brand
Fioxa is a brand’s named of our product.
Our company provide uncommon scarf which is ‘Glow in The Dark’.
In addition, our brand motto ‘Love it, Grab it, Wear it’ is an attraction because it will make people what the difference between our scarf and the other scarf in market.
Quality
Quality of our product is definitely suitable with our business.
As we convince our customer due to our quality of the product by maintaining the light of the scarf.
We also express elegance and sophistication.
In addition to this, the material are so soft and pleasant to wear.
Nothing can compare with the smoothness and also keep us cool and warm in any situation and seasons
Design
A sophisticated design is the sign of luxury scarf.
It means that the brands has invested time in creating something really unique and uncommon scarf.
We are not always aware of it but the beauty of a scarf comes both from its design and from the number and the subtlety of its colours.
A plain scarf or a scarf with a very few colours is fine if you like it this way
Packaging
We provide a nice and elegance packaging for our customer.
A special box if the customer buy more than three scarf meanwhile for the customer only one, he or she will get plastic bag.
At the plastic bag and the box we create an elegance and simple design that will attract customer’s interest.
At the bag and plastic bag, we put our number, logo, and email.
Our company’s had choose pink and black as a theme for elegance and simple design to colour our packaging.
Labelling
Labelling performs several functions such as identifying, grading, describing or even promoting the product.
Our labelling product is about the name of our company Eleglow Enterprise.
Our motto ‘Love it, Grab it, Wear it’ also will be display in our label.
We put the fabric and material as a guidance to customer to avoid they wash the scarves too rough.
Price (Cost-based pricing)
TYPE OF
PRODUCT
PRICE OF SCARF
Fareeda RM 200
Aidijuma RM 100
Ariani RM 150
EleGlow Price = cost per unit + mark up= RM 145 + (24% x RM145)= RM 179.80 @ RM 180
Distribution
Our strategies are involved many areas which are through the wholesalers then being distributed to the retailers and finally being distributed directly to the customers.
Direct to Consumer
EleGlow Enterprise Customer
We sell and manufactured our products which are scarf directly to the customer which are the one who pays to consume our product based on their satisfying needed and wants toward the scarf
Direct to Retailer
EleGlow Enterprise Retailer Customer
We had manufactured our scarf to the one intermediary level, the retailers which are a business or person that sells goods to the consumer.
So that we can expands to coverage by increasing the exposure and capturing the market and boosting our brand name within short time.
The selection of number and location widely depend on our coverage areas intended by our manufacturer EleGlow Enterprise through enlarge our product to the Malaysian market.
Promotion
Banner
We will put our banner on the front of the company office and alongside of the main road of Jalan SS 7/19 which will allow the pedestrian to see our banner. The cost of the banner is RM50.00 each. The size of the banner is 4 X 20 feet.
Flyers
We will distribute a flyers throughout the Kelana Centre Point offices and throughout the residence area. The flyers will be cost at RM50.00 per bundle. Each bundle will consist of 1000 of papers.
Business Card
We will give our business card to our customer and supplier that come to make business with us. The cost of the business card is RM70.00 per pack
Signboard
We will put a company signboard on the front of the company office. The signboard will be cost at RM3000.00
Flyers inside newspaper
We will put our flyers inside the newspaper such as Berita Harian which will cost RM 250.00. The total of flyers we will put inside the newspaper is 5000 pieces.
Social Media
We will advertise our product on social media by using internet on websites, email and social network such as Facebook and Twitter.
MARKETING BUDGETItem Fixed Asset
Expenses (RM)
Monthly
Expenses (RM)
Other
Expenses (RM)
Laptop 900
Signboard 3000
Salary 1500
Wi-Fi 130
EPF 180
SOCSO 37.50
Flyer under
Newspaper
250
Deposit Wi-Fi 100
Banner 65
Flyers 50
Business Card 70
Total 3900 2,097.50 285
OPERATION PLAN
PROCESS PLANNING Activity Flow Chart
Delegate the fabrics into the storage areas, place those fabrics based on gred arrangement.
In the storage area, check the quality of the fabrics and separate the fabrics.
Drawing area to create the design and bring to measurement area then bring to cutting area.
Cut the fabrics based on measurement required.
Transfer the fabrics from cutting area to sewing machines area for sewing process.
Shredded and put the fabrics into pieces in the sewing machine for lining process of every edges of the scarf.
After sewing process, fabric or knitted material used for making scarf.
Next, transfer fabrics colouring area for ultimate step of glowing in the dark scarf.
Last step is moved the fabrics from colouring area to drying area process for complete look of scarf. The total processed to complete dry within 24 hours.
Process Flow Chart
Purchasing of scarf materials.
Storage the fabric and scarf material.
Arrange and place the scarf accordingly.
Draw the fabric based on measurement.
Cutting the materials to measure size.
Quality inspection.
Transport the materials that have been to tailor’s table.
Sewing by tailors.
Coloring.
Transfer to the drying area.
Dry the scarf.
Quality inspection.
Packaging the scarf neatly.
Storage before shipping out.
OPERATION LAYOUT
OPERATION BUDGET
Item Fixed Assets Expenses (RM)
Monthly Expenses (RM)
Other Expenses (RM)
Machine and equipment
2400
Van 22000 Shop rental 6000 Utilities 1280 Insurance 900 Salary 3300 EPF 396 Oil and gas 800 SOCSO 82.50 Shop Deposit 1000Maintenance 250License 130Road tax 90Overhead Expenses
158
24400 12, 785.50 1628
FINANCIAL PLAN
PROJECT IMPLEMENTATION COST SCHEDULE
RM RM RM
Capital expenditure:
Marketing:
Signboard
Laptop
Operation:
Sewing machine (2)
Van
Administration:
Furniture and fittings
Sub-total
3000
900
2400
22 000
3000
3900
24400
3000
31 300
Working capital (1 month):
Marketing:
Salary for marketing manager (EPF+SOCSO)
Flyers under Newspaper
Wi-Fi
Operation:
Salary for Operation Manager (EPF+SOCSO)
Salary for Operational Assistant
(EPF+SOCSO)
Salary for driver (EPF+SOCSO)
Shop rental
Utilities (water and electricity0
Insurance
Toll and mileage
Administration:
Salary for General manager (EPF+SOCSO)
Salary for Financial manager (EPF+SOCSO)
Sub-total
1717.50
250
130
1717.50
1030.50
1030.50
6000
1280
900
800
1946.50
1717.50
2097.50
3778.50
8980
3664
18520
Other expenditure:
Marketing:
Banner
Flyers
Business cards
Operation:
Maintenance
License
Road tax
Overhead expenses
Deposits:
Wi-Fi
Shop
Utilities ( water and electricity)
Telephone
Sub-total
Grand total
65
50
70
250
130
90
158
100
1000
640
130
185
628
1870
2683
52 503
Add:
Contingency cost (10%)
TOTAL PROJECT IMPLEMENTATION COST
5250.30
57 753.30
SOURCE OF FINANCING RM RM Internal Sources :
Cash ( 4 partners ) - Muhammad bin Abdullah 3 938.32 - Nabila binti Awang Ahmad Kafli 3 938.32 - Nur Illya Syaheera binti Mat Rodzi 3938.32 - Nur Amiza Sahira binti Madzali 3938.32
15 753.30 Assets : - Van 22 000 22 000
Sub-total 37 753.30 External Sources :
Term loan 20 000 Sub-total 20 000 Other Sources :
- TOTAL SOURCES OF FINANCE 57 753.30
PRO FORMA CASH FLOW STATEMENT (ANNUALLY ONLY) FOR 3 CONSECUTIVE YEARS Year 1 Year 2
( 2% )Year 3( 4% )
Cash inflow : Equity Contribution – Cash ( 4 partners )
15 753.30
-
--
Term Loan 20 000 - - Sales 2 880 000 2 937 600 3 055 104Total Cash Inflow : 2 915 753.30 2 937 600 3 055 104Cash Outflow : Marketing Expenditure : Salary for Marketing Manager
20 610
21 022.20
21 863.10
Flyer under Newspaper 3 000 3 060 3182.40 Wi-Fi 1 560 1 591.20 1 654.80Others Marketing Expenses : Banner 65 66.30 69 Flyers 50 51 53 Business card 70 71.40 74.30Operation Expenditure : Raw Material
2 320 002
2 366 402
2 461 058.10
Direct Labour 45 342 46 248.80 48 098.80 Shop Rental 72 000 73 440 76 377.60 Utilities ( Water & Electricity ) 15 360 15 677.20 16 293.90 Insurance 10 800 11 016 11 456.60 Toll and Mileage 9 600 9 792 10 183.70
Others Operation Expenses : Maintenance
250
255
265.20
License 130 132.60 137.90 Road tax 90 91.80 95.50 Overhead expenses 158 161.20 167.60Administration Expenditure : Salary for General Manager
23 358
23 825.20
24 778.20
Salary for Financial Manager 23 358 23 825.20 24 778.20Loan Repayment : Principle
4 000
4 080
4 243.20
Interest 1 000 1 020 1 060.80Capital Expenditure : Machinery and Equipment
2 400
-
-
Furniture and Fittings 3 000 - - Motor Vehicle ( Van ) 22 000 - - Signboard 3 000 - - Laptop ( Marketing ) 900 Deposits 1 870 - -Total Cash Outflow 2 581 225 2 601 829.10 270 5891.90
Cash Surplus / ( Deficit ) 334 528.30 335770.90 349 212.10Beginning Cash Balance 0 334 528.30 670 299.20Ending Cash Balance 334 528.30 670 299.20 1 019 511.30
PRO FORMA INCOME STATEMENT (3 CONSECUTIVE YEARS)
Year 1 ( RM ) Year 2 ( RM ) Year 3 (RM )
SALES 2 880 000 2 937 600 3 055 104COST OF GOOD SOLD (COGS) Opening stock for finished goods 0 Add : Cost of goods manufactured 2 396 792 2 449 510.20 2 503 881.30
Goods available for sale 2 396 792 2 449 510.20 2 503 881.30
Less : Closing stock for finished goods ( 31/12 )
0
GROSS PROFIT 483 208 488 089.80 551 222.70 Less : Expenditure Marketing expenditure 25 170 25 673.40 26 700 3Administration expenditure 43 968 44 847.40 46 641.30Other expenditure 185 188.70 196.30Interest on Loan 1 000 800 600Depreciation for Fixed assets 1 380 2 760 4 140 Total Expenditure 71 703 74 269.50 78 277.90Net profit Before Tax 554 911 562 359.30 629 500.60Tax 0 0 0Net Profit After Tax 554 911 562 359.30 629 500.60Accumulated Net Profit 554 911 562 359.30 629 500.60
PRO FORMA BALANCE SHEET (3 CONSECUTIVE YEARS)
Year 1 Year 2 Year 3
Fixed Assets (Book Value)
Motor Vehicles (Van)
Furniture and Fittings
Machinery (Sewing Machine)
Laptop
Signboard
17 600
2 400
1 920
720
2 400
13 200
1 800
1 440
540
1 800
8 800
1 200
960
360
1 200
Current Assets
Cash
Account Receivable
334 528.30
85 720
677 654.60
87 434.40
1 032 522.20
90 931.80
-
590 664.30 776 513.60 1 122 963.10
Owners’ Equity
Capital
Accumulated profit
15 753.30
554 911
15 753.30
562 359.30
15 753.30
629 500.60
Current Liabilities
Account payable
-
182 401
465 709.20
Long Term Liabilities
Term Loan
20 000
16 000
12 000
TOTAL EQUITY AND LIABILITIES 590 664.30 776 513.60 1 122 963.10
FINANCIAL ANALYSIS (CURRENT RATIO NET PROFIT MARGIN ONLY) FOR 3 CONSECUTIVE YEARS
YEAR 1 YEAR 2 YEAR 3
CURRENT
ASSET
RM 420 248.30 RM 757 733.60 RM 110 443.10
CURRENT
LIABILITIES
RM 0 RM 182 401 RM 182.401
CURRENT
RATIO
0 4.51 Times 5.58 Times
ANALYSIS The business has the ability to generate cash to
meet the short-term obligations.
Year 1 (0) Year 2 (4.51) Year 3 (5.58)0
1
2
3
4
5
6
Current ratio for three consecutive year
CONCLUSION
In general conclusion, Eleglow Enterprise will meet its goals by following the Business Plan.
Our target market is mainly focus on women in various age. With the start up capital total up RM 15753.30 Eleglow Enterprise will grow into a larger company.
By following the plan, Eleglow Enterprise will grow up to 4% of sales in the first 3 years after its initial launch.