Warisan craft ent

Assalamualaikum w.b.t

First of all we are very thankful to Allah s.w.t because of His blessing we are success

to complete our final project assignment entitled “Business Plan: Warisan Craft Enterprise”

in given time. We would like to express our thank to Mrs Roha Binti Mohd Noah as our

lecturer that give us so much help in giving advices and instructions in order to complete this

project successfully.

Special thanks also to Zalfiano Enterprise especially to Mrs. Azizah Binti Ahmad, the

Chief Executives Officer, for her cooperation and permission that allow us to do an interview

with her and give information that will help in our assignment.

Finally, to our group members that really giving full commitment to finish this

assignment, we really appreciate that and make us very close with each other. We are really

grateful because we can complete this assignment in a specific time. Lastly, thank you to all

who has involved in this assignment no matter in a direct or indirect way. Thank you.

WARISAN CRAFT ENTERPRISE Page 1

ACKNOWLEDGEMENTS 1.0

EXECUTIVE SUMMARY 1.1

Our company, Warisan Craft Enterprise is mainly producing a product that base on

the rattan. We make the product from coloring the rattan until its finish and then market

our product by selling the product directly to customer. Our marketing department has

approved that our product has own demand and there is profitable market.

Our main objectives for this business are to maintain our craft so that it will never

been forget and also we want to create something new and unique so that many people

will like to buy this type of product that base on rattan and make this product is well

known. Therefore, we as the founder of the Warisan Craft Enterprise have collaborated to

create variety of product base on rattan until we have this innovative product.

In order to ensure our business run smoothly, we have hired 2 workers in

operational department. We has been separated the job in a few departments among us.

It’s including Administration Department, Marketing Department, Operational

Department and Financial Department. We as the manager for each department will

cooperate to ensure that Warisan Craft Enterprise will gain maximum profit using fewer

resources.

The total cost from this business is estimated RM 44,000 and the profit was

estimated RM 316,376.19 in 3 years. We strongly confident that this market would not

disappointed us and promised the bright future.


INTRODUCTION 1.2

Our company’s name is Warisan Craft Enterprise where the ideas to establish this

company is start from early of year 2008. We choose this name to be our company name is

because we think that it has own strength and also we think that this name is more suitable to

maintain our custom from being vanish. Warisan Craft Enterprise is a combination idea of

six partners to provide a services and product base on rattan.

Warisan Craft Enterprise is located at Batu 4, Jalan Pantai, Port Dickson, Negeri

Sembilan. We chose this location because it is the tourism place. It is the place where the

people will choose when they want to go holiday with their family and there also have some

attraction place that make the tourist will come and visit this place. So we think this is the

right place as our target customer and we expect that it could support our business to achieve

our goals and objectives.

The factors in selecting this type of business is because we want to maintain our

customs and as we know nowadays there is not many youths that interested doing this thing.

Based on this factor, we have plan a strategy and assumes that more people will like to join

this type of business. We also assumes that for ten years from now we could open another

branch outside Negeri Sembilan such as in Johor Bahru, Kuala Lumpur and others with the

same service provides.


PURPOSE 1.3

This business plan is prepared before we are going to run up our business to get a

support from the other institution. This is to make sure that our business is going to operate in

legal way and thus it is established under authority permission. Another reason by preparing

this business plan is:

→ To maintain our customs that related to rattan

→ To create something new and unique.

→ To make populations nowadays more interested towards the furniture or thing that

related to the rattan.


LOGO 1.4

‘WARISAN CRAFT ENTERPRISE’

The earth Symbols of evolution and growth.

Green color Symbols of nature.

The leaf Represent that our main materials is base on the forest based (rattan)


COMPANY DETAILS 1.5

Name of company : Warisan Craft Enterprise

Address : Batu 4, Jalan Pantai,

71050 Port Dickson,

Negeri Sembilan.

Telephone No : 06 - 6476152

Web site : http://[email protected]

Form of Business : Partnership

Main Activity : Selling the tray (Dulang Klasik) and dished cover (Seri Saji)

Registration Date : 1 December 2007

Commencement Date: 1 JAN 2008

No. Registration : 5287651

Initial Own Capital : RM 44,000

Bank : Agro Bank

Trademark : Our Crafts Our Traditions

Target Market : Everyone

Our company is located at Tanjung Gemuk, Port Dickson, Negeri Sembilan area

which it is a tourism area. There is some of attraction to attract the tourist and suitable for our


COMPANY BACKGROUND 1.6

target market which is compare to the other area, people not only in the state but also from

others state will prefer to come at Tanjung Gemuk for their holiday.

Our main activities of this company are sales the craft and not just that, we also make

the craft from the shop. Besides that we also do a service to our customer if they want to learn

how to make the craft, we also explain about the craft to the customer so that they know

better about it. We also create the friendly environment towards our employees when they do

their works.

Regarding the registration, a partnership is governed by the Partnership Act 1961. It is

registered with the Business Unit of the Companies Commission of Malaysia (CCM) because

we are a partnership. We are preferred to choose AGRO Bank as our saving for company

profit.

NAME : AZAH AFIFI BINTI MOHD ZAKKI


PARTNERS BACKGROUND 1.7

I/C Number : 840312-08-5334

Permanent Address : No, 59 Taman Jemapoh

72000 Kuala Pilah

Negeri Sembilan, Darul Khusus.

Position : General Manager of

Warisan Craft

Enterprise

Telephone Number (Hp) : 013-3440386

Date of Birth : 03 December 1984

Age : 26th years old

Marital Status : Single

Academic Qualification : 1. Bachelor in Operation Management

2. Diploma in Business Management

Experience : 1. Clerk at GIANT Marketing

Department

2. Part Time at Quick Photo,

Seremban.

Skills : 1. Fluent in Malay and

English

(Written and Spoken)

2. Have a Computer Skill (Microsoft

Office)

NAME : Nur Izzati Binti Radzuwan

I/C Number : 840305-01-5178

Permanent Address : No. 68, Block 3, Felda Maokil 4,

85300 Labis, Johor, Darul Takzim.


Position : Administration

Manager of Warisan

Craft Enterprise.


Date of Birth : 05 March 1984



Academic Qualification : 1. Bachelor in Administration

Management.


Experience : 3 years work as Assistance Manager

at MARDI.

Skills : 1. Fluent in Malay and English


2. MYOB, Pc Service

NAME : Noor Haiyu Binti Nasri

I/C Number : 841125-14-5170

Permanent Address : 399 Felda Air Tawar 03,

81920 Kota Tinggi, Johor.

Position : Marketing Manager of Warisan Craft

Enterprise


Date of Birth : 25 November 1984



Academic Qualification : 1. Bachelor in Human Resource



Experience : 1. Cashier at GIANT.

2. Promoter at Mobile Net, JB

3. Operator at Meiban Tech, JB



2. MYOB, Pc Service

NAME : NurSafirah Bt. Bohari

I/C Number : 840217-01-5318

Permanent Address : Lot 8910 JLN Nakhoda Kiri 2

Selayang Baru, Selangor.

Position : Operation Manager of Warisan Craft

Enterprise


Date of Birth : 17 February 1984



Academic Qualification : 1. Bachelor in Retail Management


Experience : 1. Receptionist at Palace Golden

Horses.

2. Part Time at Guardian.



2. MYOB, Microsoft Word


NAME

:

NurulHuda Binti Rosli

I/C Number : 840414-02-5248

Permanent Address : No. 103, Kampung Pancur,

06400 Pokok Sena,

Kedah Darul Aman.

Position : Financial Manager

of Warisan Craft

Enterprise


Date of Birth : 14 April 1984



Academic Qualification : 1. Bachelor in Finance


Experience : Work as Accounting Manager



2. MYOB, Pc Service

3. Strong Public Relationship


NAME :

Raja Nur Rahifah Izyani Bt Raja

Abdul Rahman.

I/C Number : 840822-09-5244

Permanent Address : No. 6, Jalan Sek Keb Utan Aji,

01000 Kangar Perlis.

Position : Financial Manager

of Warisan Craft

Enterprise


Date of Birth : 22 August 1984



Academic Qualification : 1. Bachelor in Office Management


Experience : 2 years work as Assistant Marketing



2. MYOB, Pc Service


This agreement will bind the partners with the following aspects:

Types of Business

The business had been registered under Register of Business using the name of Warisan Craft

Enterprise. This business as a enterprise company that generally provide craft that base on

rattan to the customer.

Capital

Each partner has contributed the capital as follows:

Azah Afifi binti Mohd Zakki RM 9,000

NurSafira bt Bohari RM 7,000

Nur Haiyu binti Nasri RM 7,000

Nur Izzati binti Radzuwan RM 7,000

NurulHuda binti Rosli RM 7,000

Raja Nur Rahifah Izyani bt Raja RM 7,000

Abdul Rahman

_____________

Total RM 44,000

_____________


PARTNERS AGREEMENT 1.8

Period of Partner Agreement

From the consent of partners we agreed that:

The business had to run at least 5 years and partners are prohibited from dissolving the

business without the consent of other partners’ resolutions to other partners.

Distribution of Profit & Loss

Every partner has belonging this business and the amount of the profit from this business as

well. The partners will distribute profit according to capital distribution. Any losses will be

liable among partner equally according Partnership Act 1961.

Perquisite

Any additional pay is to follow current profit and will be present in the end of annual

financial report.

Partnership Property

Owned by the partnership and partners because it is not separate legal entity

(Partnership Act 1961 S.22)


Death

The representative of the death partners can appoint to the business under the Malaysian Law.

The close member’s of the family upon the entire death partner share can make the

transmission of the state.

Bankruptcy or Dissolution of Partnership

When the partner is found lunatic, permanently unsound mind [Partnership Act 1961 S.37

(a)]

When a partner permanently incapable of performing his part of the partnership contract

[Partnership Act 1961 S.37 (b)]

When a partner calculated to affect prejudicially the carrying on the business[Partnership Act

1961 S.37 (c)]

When the partner willfully or persistently commits a breach of the partnership agreement or

otherwise [Partnership Act 1961 S.37 (d)]

When the business of the partnership can only be carried on at a loss [Partnership Act 1961

S.37 (d)]

Whenever in any case circumstances have arisen which in the opinion of the court, render it

just and equitable that the partnership be dissolve [Partnership Act 1961 S.37 (f)]


Retirement

If any partner who want to retire from the business must have consent from other partners.

They will get back their invest and the notice of retirement must be given 3 months before the

retirement date.

Others

Each of the partners must act in good faith and respect other partners. Partners must have

willingness and interested to make the business more successful and giving full commitment

for the business. They also must be honest and straight forward in order to execute

responsible as a partner.


______________________________

AZAH AFIFI BINTI MOHD ZAKKI

840312-08-5334

GENERAL MANAGER

______________________ _______________________

NURSAFIRAH BT BOHARI NUR HAIYU BINTI NASRI

840217-01-5318 841125-14-5170

OPERATION MANAGER MARKETING MANAGER

_______________________ __________________________

NURULHUDA BINTI ROSLI NUR IZZATI BINTI RADZUWAN

840414-02-5248 840305-06-5178

FINANCIAL MANAGER 1 ADMINISTRATION MANAGER

________________________________

RAJA NUR RAHIFAH IZYANI BT RAJA ABDUL RAHMAN

840822-09-5244

ASSISTANCE FINANCIAL MANAGER


LOCATION OF BUSINESS 1.9


WE ARE HERE

WE A

RE HERE

ADMINISTRATION PLAN 2.0

Administration is very important in business plan. It comprises of human being that

carry out specific tasks or activities in a coordinated manner for purpose of achieving the

objectives of the organization. Administration manager do the management functions

which is planning, organizing, leading and controlling the employees task.

Administration planning involves all activities of formulating company policies

procedures for the purpose of achieving the stated goals in effective manner. It includes

long and short term plan which is strategic that the company making and short term plan

more on operational issues.

As we know that, in running the business, the effective and systematic planning

beside experience, knowledge and skills is needed to do the business activities. It is for

purpose in achieving the objective of the administration plan to reach goal.

As the result, that’s why several strategies are performed to take action on how to

seek information to help achieve business objective or clarify business problems in the

administration business plans.


VISION, MISSION & GOALS 2.1

Vision

To trained a fresh graduated and pursue particular craft business especially product that base

on rattan.

To expand the handicraft business goes too internationally and globally.

Mission

To increase the profit and fulfilled the demand of handicraft products for local resident and

tourist.

Goals

To being a creative and innovative company in producing a handicraft based on rattan and

produces a high quality of the product.


BUSINESS ADDRESS 2.3

The strategic location that have we choose to started and operate our business is at Port

Dickson Negeri Sembilan. The factors that influence us to choose that place is because a

demographic factor that near to tourism place and easier to attract the tourist and local

residents’ to visit Warisan Caft Enterprise. This is our business address:

BATU 4 JALAN PANTAI,

71050 PORT DICKSON,

NEGERI SEMBILAN.

To operate more effectively we decided to rent shop lot. It is located in one of the

business areas in Port Dickson Negeri Sembilan. This building is just near the tourism area.

Besides the location factor, low rental price is another reason why we choose this building.

The following page shows the location of our business.


TYPE OF BUILDING 2.4

BASIC INFRASTRUCTURE 2.5

This building is well e equipped with electric and water supplies from Tenaga

Nasional Berhad and Syarikat Air Negeri Sembilan. We are also do some renovation of the

building started the business. In our building are divided by a certain part like a prayer room,

office store toilet. Our building also near with the Recreation Park and beach at Port Dickson

Warisan Craft Enterprise will operate 8 hour per day from 10 a.m. until 5 p.m. Each of

workers will get 1 day off. We will open every day, Monday until Sunday except Friday

we’re off day.

Operation hours:

SHIFT WORKING TIME REST TIME WORKING TIME

MORNING 9.00 A.M- 12.00P.M 12.00P.M-12.45P.M 12.45P.M-5.00P.M

Business hours:

DAY BUSINESS TIME

Monday – Sunday 10.00 A.M – 5.00 P.M.

Friday Off day


BUSINESS & OPERATION HOURS 2.6


LOCATION PLAN 2.7

LAYOUT PLAN 2.8

MEASUREMENT

WIDTH: 70 ft

HEIGHT: 80 ft


COLOR DEFINATION

FINISH GOOD CABINET

WAITING AREA

COUNTER TABLE

DISPLAY SHELTER


GENERAL MANAGER

AZAH AFIFI BTMOHD ZAKKI

GENERAL MANAGER

AZAH AFIFI BTMOHD ZAKKI

ADMIN MANAGER

NUR IZZATIBT

RADZUWAN

ADMIN MANAGER

NUR IZZATIBT

RADZUWAN

OPERATION MANAGER

NURSAFIRAH BT

BOHARI

OPERATION MANAGER

NURSAFIRAH BT

BOHARI

MARKETING MANAGER

NOOR HAIYU BT

NASRI

MARKETING MANAGER

NOOR HAIYU BT

NASRI

FINANCIAL MANAGER 1

NURULHUDA BT ROSLI

FINANCIAL MANAGER 1

NURULHUDA BT ROSLI

FINANCIAL MANAGER 2

RAJA NUR RAHIFAH

IZYANI BT RAJA ABD RAHMAN

FINANCIAL MANAGER 2

RAJA NUR RAHIFAH

IZYANI BT RAJA ABD RAHMAN

2EMPLOYEES

2EMPLOYEES

ORGANIZATION CHART 2.9


POSITION NO OF PERSONNEL

GENERAL MANAGER 1

ADMINISTRATION MANAGER 1

FINANCIAL MANAGER 2

LIST OF ADMIN PERSONNEL 2.10

TASK RESPONSIBILITIES 2.11

POSITION TASK AND RESPONSIBILITIES

GENERAL

MANAGER

• Responsible to carry out the strategic plan and

policies as establish by the boards of director.

• Operations and administrative of board by

advising and informing board members,

interfacing between board and staff and

supporting board’s evaluation of general manager.

• Oversees design marketing, promotion, delivering

and quality of programs, product and services.

• Assures the organization and its mission,

programs, product and services are consistently

presented in strong positive image to relevant

stakeholders.

ADMINISTRATION

MANAGER

• Establish and maintain contact with many

contacts with many people both within and

outside the business..

• To ensure that he authority delegate is just

sufficient to carry out the duties by the

subordinates.

• To ensure that the organizations resources such as

men, machines, materials, and money are

optimally utilized.

• Focused on the practical application of marketing


MARKETING

MANAGER

techniques and the management of firms

marketing resources and activities.

• Responsible for influencing the level timing and

composition of customer demand accepted

definition of the term.

• Focus on understanding the company cost

structure and cost position relatives to competitors

as well as working to identify a firm’s core

competencies and other competitively distinct

company resources.

• May also work with the accounting department to

analyze the profits the firm is generating from

various product lines and customer accounts.

• Basically in charge of the 5P’s which are product,

pricing, packaging, place distribution and

promotion

OPERATION

MANAGER

• Improve the efficiency of the operation for

example machine, timetable of work, resources,

and others.

• Improve control of service level and quality.

• Set services level agreement for a user

department.

• To resolve daily issues and work staff to improve

customer service.

• To make sure the operation function properly


FINANCIAL

MANAGER

• Responsible to protect assets.

• To create value from the firm capital budgeting,

financing, and networking capital activities.

• To oversee the preparation of financial report,

executed cash management strategies and direct a

corporation’s investment activities.

• To detailing and implementing a corporation

long-range goals as well as those in the short

term.

• To demonstrate leadership in cost-effective uses

of the corporation financial resources by utilizing

effective financial management practice.

• Responsible for maximizing the shareholder’s

value.


EQUIPMENT & FURNITURE2.12

ITEM QUANTITY TOTAL

Table 4 1,500

Round Table 1 300

Display shelter 2 500

Chairs 8 500

Finished good cabinet 2 800

Counter Table 1 250

Counter Chairs 1 150

Cash Machine 1 800

TOTAL 20 4,800

POSITION NO MONTHLY

SALARY

EPF

(10%)

SOCSO

(2%)

AMOUNT

(RM)


SCHEDULE OF REMUNIRATION2.13

GENERAL

MANAGER

1 1000 100 20 1120

ADMINISTRATION

MANAGER

1 1000 100 20 1120

OPERATION

MANAGER

1 1000 100 20 1120

MARKETING

MANAGER

1 1000 100 20 1120

FINANCIAL

MANAGER

2 2000 200 40 2240

TOTAL 6 6000 600 120 6720

ADMINISTRATION BUDGET Particulars F. Assets Monthly Others (RM) (RM) (RM) (RM)Fixed Assets* Cashier Machine 800


ADMINISTRATIVE BUDGET 2.14

Furniture 4000 Sub-total 4800 Working Capital Salary 6000 SOCSO and EPF 720 Office Supplies 200 Rental 50 Telephone 80 Sub-total 7050 Other Requirements Registration & Licences 200 Deposit For Rental 100 Renovation Cost 1600 Telephone Registration 180 Sub-total 2080 Total 13930

In business, marketing is one of the most important parts in forming business.

Without proper marketing plan, a business may never achieve their goals. The marketing can

be defined as a future prospect and all activities that are carried out systematically to

encourage and increase the sales of product as long as the activities are still within the

guideline of religious and practical practice.

Marketing is basically is an exchange activity that takes place between business entity

and its customers. The customers include individuals, other business entities and support

organizations. Marketing is the most important part in business because it forms the backbone

to the total business effort in achieving a profitable outcome. Marketing should be well

planning and systematic in order to attracted and satisfied consumers needs and wants.

In Warisan Craft Enterprise, we had set marketing plan objectives to achieve our

goals which are SMART -- specific, measurable, achievable, realistic and time-based. Our


MARKETING PLAN 3.0

marketing concept also rests on the philosophy that all marketing activities must satisfy

customer needs and wants, and at the same time achieve the targeted profits in ethical ways.

Product description is very important in marketing plan because this will give the first

impression of our business to the investors in order to convince them to invest in our

business. Warisan Craft Enterprises is the Partnership Company of 6 partners selling and

providing services for varieties of rattan-based home furnishing craft, souvenir products, and

keychain. Our main products are Seri Saji which is dished cover and Dulang Klasik which is

tray.

Target market can be defined as the group of customers with needs and wants that can

be satisfied by the business through the supply of good services. Target market is the very


SERVICE DESCRIPTION 3.1

TARGET MARKET 3.2

important in marketing activities to sell our product towards certain groups of customers and

make sale from that. Without all the customers, the business cannot run. The target markets

of Warisan Craft Enterprise are focusing on tourists, public area, local and resident’s area

around Port Dickson.

GEOGRAPHIC

We have selected around Port Dickson, Negeri Sembilan as our main location to sells

our products. We also have survey other aspect including basic facilities, strategy places and

security in that area. These facilities can help us to smoother our operation and provide high

quality of rattan product and be able to attract more customers at one time.

DEMOGRAPHIC

For the beginning, we have agreed to sell our product at the northern state of

Peninsular Malaysia which is in Negeri Sembilan. Our premise which is situated at Jalan

Pantai, Port Dickson has big potential to sell the rattan craft product. Our target markets are

among the local residents and tourists in Port Dickson. Warisan Craft Enterprise which is

consider a Small Medium Enterprise Product sells varieties of rattan product with reasonable

prices and affordable to everyone to buy it.

Market size is total potential purchase that is expected from the target market.

Estimation of market size required information regarding the particular market the business


MARKET SIZE 3.3

intends to enter. The potential purchase includes purchase of the competitor within the same

market.

Our business has identified our target market as the Port Dickson tourists and local

residents. We assume that 5% of them which is 1360 people as a total buyers that will buy

our rattan craft products. Thus the numbers of customers are 68 customers. We assumed that

everyday each customer will spent RM45 per week.


• PER WEEK

68 customers x 5% = 68 customers

68 customers X RM 45 = RM 3,060

• PER MONTH

RM 3,060 x 4 = RM 12,240

• PER YEAR

RM 12,240 x 12 = RM 146, 880

Thus, our market size is RM 146, 880 per year.


NAME OF COMPETITORS

R & Z ENTERPRISE

No.23, Jalan Desa Dahlia 9,

71050 Port Dickson,

Negeri Sembilan.

BINTARA KRAF

No. 57, Jalan Wangi 3,

71050 Port Dickson,

Negeri Sembilan.

NAME OF COMPETITORS

R & Z ENTERPRISE


71050 Port Dickson,

Negeri Sembilan.

BINTARA KRAF


71050 Port Dickson,

Negeri Sembilan.

COMPETITORS3.4

STRENGTHS AND WEAKNESSES OF COMPETITORS

R & Z ENTERPRISE

STRENGHTS

• They already have regular customers due to the strategic location and great business of 3 years

of experience.

• As the high financial support, the company is able to expand their business all over the place and

become well known.

• They always make promotions with low price and have eye catching product.

WEAKNESSES

• They have only a few and limited product.

• They have a small space for the operation activities.

• The staff also is not friendly with the customer.

BINTARA KRAF


STRENGHTS

• They sell varieties of home furnishing based on rattan product.

• The staff is very friendly with the customer.

• They providing delivery service.

WEAKNESSES

• They didn’t arrange the product systematically and in logical order. Due to that reason, the

customer will feel messy and uneasy.

• The location of the company is not strategic.

WARISAN CRAFT ENTERPRISE

STRENGHTS

• We sell rattan-based home furnishing craft and souvenir products that symbolizes our

country traditions and identity.

• Our products are more creative, unique and trendy especially for the teenagers and the

tourists.

• We have the skills, expertise, and basic knowledge to fulfill the customer needs, wants

and also satisfaction.

WEAKNESSES

• We are new to business and zero experience at all.

• We don’t have any regular customer.

• We have only a small space for the operation activities.


Market share refer to the portion of the market that the business can control after

taking into consideration market size and the competitors position in the same market.

Before Warisan Craft Enterprise enters the market in Jalan Pantai, Port Dickson.

There are 2 competitors who act as mastermind which are R & Z Enterprise and Bintara Kraf.

Market Share before the entry of Allmagz Enterprise

COMPETITORS PERCENTAGE (%) AMOUNT (RM)

R & Z ENTERPRISE


71050 Port Dickson,

Negeri Sembilan.

60 % 88,128


MARKET SHARE 3.5

BINTARA KRAF


71050 Port Dickson,

Negeri Sembilan.

40 % 58,752

TOTAL 100 % 146,880

PIE CHART

R&Z ENTERPRISE

BINTARA KRAF

MARKET SHARE BEFORE ENTRY OF WARISAN CRAFT ENTERPRISE

60%40%

MARKET SHARE PER MONTH:


• R & Z ENTERPRISE

YEARLY = RM 88,128

MONTHLY = RM 88,128 ÷ 12

= RM 7,344

• BINTARA KRAF

YEARLY = RM 58,752

MONTHLY = RM 58,752 ÷ 12

= RM 4,896

Market Share after the entry of Warisan Craft Enterprise

COMPETITORS PERCENTAGE (%) AMOUNT (RM)

R & Z ENTERPRISE


71050 Port Dickson,

Negeri Sembilan.

70 % 102,816

BINTARA KRAF


71050 Port Dickson,

Negeri Sembilan.

.

20 % 29,376


WARISAN CRAFT

ENTERPRISE

Batu 4, Jalan Pantai,

71050, Port Dickson,

Negeri Sembilan.

10% 14,688

TOTAL 100 % 146,880

PIE CHART

R&Z ENTERPRISE

BINTARA KRAF

WARISAN CRAFTENTERPRISE

MARKET SHARE AFTER ENTRY OF WARISAN CRAFT ENTERPRISE

70%20%

10%

MARKET SHARE PER MONTH:

• R & Z ENTERPRISE

YEARLY = RM 102,816

MONTHLY = RM 102,816 ÷ 12


= RM 8,568

• BINTARA KRAF

YEARLY = RM 29,376

MONTHLY = RM 29,376 ÷ 12

= RM 2,448

• WARISAN CRAFT ENTERPRISE

YEARLY = RM 14,688

MONTHLY = RM 14,688 ÷ 12

= RM 1,224

MONTH SERI SAJI

(DISHED COVER)

(RM)

DULANG KLASIK

(TRAY)

(RM)

SALES

COLLECTION

(RM)

JANUARY 5000 6750 11,750

FEBRUARY 6000 8,100 14,100

MARCH 7000 9,450 16,920

APRIL 8000 10,800 20,304

MAY 9000 12,150 24,365

JUNE 10,000 13,500 29,238

JULY 11,000 14,850 35,086

AUGUST 12,000 16,200 42,103

SEPTEMBER 13,000 17,550 50,524

OCTOBER 14,000 18,900 60,629

NOVEMBER 15,000 20,250 72,755

DECEMBER 16,000 21,600 87,306


SALES FORECAST 1 3.6

YEAR 1 465,080

YEAR 2 (TOTAL SALES 5%) 488,344

YEAR 3 (TOTAL SALES 7%) 522,527

SALES FORECAST

SALES AND PURCHASE BUDGET

Month Sales (RM) Purchase (RM)

JANUARY 11,750 3,870.00

FEBRUARY 14,100 4,644

MARCH 16,920 5,572.80

APRIL 20,304 6,687.36

MAY 24,365 8,024.83

JUNE 29,238 9,629.80

JULY 35,086 11,555.76

AUGUST 42,103 13,866.91

SEPTEMBER 50,524 16,640.29

OCTOBER 60,629 19,968.35

NOVEMBER 72,755 23,962

DECEMBER 87,306 28,754.40

Total Year 1 465,080 181,930.90

Total Year 2 488,344 191,027.44


SALES FORECAST 2 3.7

Total Year 3 522,527 204,399.36

Increment Year 2 (%) 5% 5%

Increment Year 3 (%) 7% 7%

ANALYSIS OF SALES FORECAST

Table from the page before show our company sale forecast in 2008 for the first year

1. This total sale forecast is come from our sale of Seri Saji which is our dished cover and

also Dulang Klasik which is a tray. For the beginning, our total sale forecast for the first

month sale forecast is RM 11,750. For the first month on January, the total of our sale

forecast are being influent by the school holiday end and because we just started our business.

We are the new entrepreneurs, so that, it is difficult for us to enter the market at the first step

but with the help of “Perbadanan Kemajuan Kraftangan Malaysia” in terms of promotions

and guidelines, our company be able to gain profit. Sale forecast for the month of February,

the total of sale forecast is RM 14,100. The total of sale forecast on this month is increase

because of Chinese New Year. On this celebration, there are many tourists around Port

Dickson likes to buy our rattan-based craft product while their celebrate Chinese New Year.

On March our sale is increase to RM 16,920. This is due to the promotions and

exhibitions that being held by “Perbadanan Kemajuan Kraftangan Malaysia” such as National

Craft Day, Ekspo and so on to help the new Small Medium Enterprise (SME) entrepreneurs

in expanding their business and become competitive with others and also to generates

economy. For the April, our sale forecast increase a little bit to RM 20,304. This is because

of promotion strategy and events. On this month our business are running as usual. For the

month of May, our sale forecast is increase from RM 20,304 to RM 24,365. The sale forecast

is increasing on that month because more tourists will visits to Port Dickson due to the school

holiday and also Labor Day. Our company also gain more profit due to the participation in all

the events that had being held by “Perbadanan Kemajuan Kraftangan Malaysia”.

Then, our sales are also increase on month Jun to RM 29,238. This is because there is

special occasions, wedding events and campaign by government that can influents our sale


like a month before. For the month of July, we target our sale are showing some increase of

20% from RM 29,238 to RM 35,086.

After that, for the month of August, our business show positive of profit grows of sale

forecast that is RM 42,103. This is due to the celebration of Independent Day. Other than

that, the sale on this month is increasing due to the fasting month of Ramadhan. On this time,

customer will busy preparing for the incoming Eid al Fitr day by decorating and make our

rattan -based home furnishing craft and souvenir products as their home decoration. Special

promotion and gift are also given to the customers on this month.

On the month of September, our sale is increasing to RM 50,524. The sale is also

increase at this month because tourists and local customers also are still shopping for the Eid

al Fitr celebration. On October, our sales are increase to RM 60,629. But this total sales

collection is still maintain because this month is the school holiday. For the month of

November, our sales are increase to RM 72,755. Lastly, on December, our sales are increase

to RM 87,306. This is because, on this month there are a lots of events and promotions such

as Wedding promotions and Craft day that had being held by “Perbadanan Kemajuan

Kraftangan Malaysia” special for all the tourists and local customers. For the year 2008 or

year 1, the total sale forecast for our company is RM 465,080. For the next year 2 or year

2009, our company sale forecast is RM 488,344. Lastly for year 3 or year 2010, our

company sale forecast is RM 522,527.


Marketing strategy is an important element in implementing a succesful or failure of

each business organization. It is effective way that can help us to make sure that our target

can be achieved. We are using 4P’s which are product, price, promotion and place as our

marketing strategies.

Product & Service Strategies

Our company will give special attention and focused more on the following aspects as a part

of our marketing strategy.

• Brand

The word “Warisan Craft” has been chosen as our brand and symbolizes our rattan-

based home furnishing craft and souvenir.”Warisan Craft” is a unique tradition

name’s which symbolizes our own cultural identity. We ensure that our product can

fulfill the demand of our customer and which are trendy, creative, colorful and

attractive.

• Quality

The quality of our products is determined when we select our raw materials. We will

ensure that our raw material that we got from the supplier is in good condition without

any damage that can reduce the quality of the product. To maintain our quality of

product, we will only used gred A’s rattan as our main raw materials. We also really

concern about the performance and progress of our staff because we only carry the

best quality craft in all our products.


MARKETING STRATEGIES 3.8

• Packaging

PROTECTION

We use only good quality of plastic for our plastic bag. This plastic bag is

durable to use for the reading material that our customer purchase. So that it

cannot easily damage because of the book. We also provide wonderful

packaging boxes for the large amount of purchasing our products.

EASE OF USE

We will arrange our main products systematically which are dished cover, tray

and other products according to their sizes, use, creativity and uniqueness. By

doing this, we can help our customer to find and choose the products easily

and quickly, without any confusing.

PRODUCT SAFETY

In term of product safety, we will ensure that our product is display in a good

condition. The ready-made rattan craft then will be display carefully and

nicely in our shops. We also will ensure the careful handling of our products

and ensure that all of our products must be clean from dust and dirt.

AFTER SALES SERVICES

We will follow up our customer reservation if they make an order and ask

them if they need other products. We also will provided the customers with

open-ended questions and ask them to comment about our products. By doing


this, we can upgrade our service and able to fulfill the demand and satisfaction

of the customers.

Pricing strategies also is one of the elements in marketing strategies that play an

important role in selling our product. We used value-based pricing to sell our rattan-based

home furnishing crafts and souvenir products due to our price is based on the value and arts

of the product itself. In value-based pricing, the customers’ perception of value of a product

is a key factor considered in pricing the product or service. Our company must make a

research about the price that the customer is willing to pay for our craft product. This

perceived value is associated with the benefits that the customers believe are derived or

received from our product because measuring perceived value of arts is difficult. Pricing a

product or service too high may result in poor sales. Under-priced products, on the other

hand, generate less revenue that they would if price were raised to the perceived value level.

Promotion strategy is used to disseminate information about the services offered for

our business to attract the target market. We are also having many promotions as one of our

marketing strategies to face our competitors and improve our market reputation in the future.

According to the type of business we run, together with the great promotion

strategies, conducive location and taking other important considerations, we can predict that

there are great potentials for us to stay stable and develop in the market for a long period of

time. Therefore, with the great competition in the market, as a new comer in the world of

Small Medium Enterprise (SME) business, we have decided to make the best promotions so

that the consumers are well informed with our business.


PRICING STRATEGIES 3.9

PROMOTION STRATEGIES 3.1

0

The art of craft making is not only a heritage that needs to be preserved due to its

aesthetic value but also for its socio-economic contribution for the society. So, as our

business is under the Nation’s Craft Industry, we are being assisted by, “Perbadanan

Kemajuan Kraftangan Malaysia” in terms of marketing aspects including participation in

promotional programmed and so on.

“Kraftangan Malaysia” also has a vision to emerge as the leader in the development of

the nation's craft industry and in ensuring the competitiveness of the industry. Kraftangan

Malaysia has outlined six strategies to realize these goals, among others develop the local and

international market, develop products, enhance the use of technology in the manufacturing

process and provide incentives and facilities for the entrepreneurs. Kraftangan Malaysia too

will work to preserve the 1Malaysia heritage craft apart from providing learning facilities to

churn out trained manpower in this field

Apart from that, advertising is a part of sales presentation being connected through

media or non media form to influence a large numbers of customers. We prefer to promote so

that we can reach our target market and other customers more effective.

Business card in one type of method that important on promoting our business. It is

also easy for our customer to contact, ask, reserve and confirm with the transaction of

business. We will distribute the business card of our business to the customer that need for

the further information.

Other than that, we used signboard and bunting at our shop. We will tie up bunting

at our shop in order to attract customers and make them become aware with our existing

shop. We will also distribute pamphlets to the customers, so the customers will understand

and know better about our products. Despite this, we are also promoting our products through

website and facebook for the online buyers.


EXAMPLES OF BUSINESS CARD


EXAMPLES OF PAMPHLET, SIGNBOARD & BUNTING

• PAMPHLET


• SIGNBOARD

• BUNTING


BATU 4, JALAN PANTAI, 71050, PORT DICKSON

PHONE: 06 – 6476152

WEBSITE: http://[email protected]

Position Number of Personnel

Marketing Manager 1


Position No. Monthly

Salary

(RM)

EPF

(10 %)

(RM)

SOCSO

(2%)

(RM)

Amount

(RM)

Marketing Manager 1 1000 100 20 1120

TOTAL 1 1000 100 20 1120

MARKETING PERSONNEL 3.11

SCHEDULE OF REMUNERATION 3.12

MARKETING BUDGET 3.1

3

MARKETING BUDGET

Particular F. Assets Monthly Others

(RM) (RM) (RM) (RM)

Fixed Assets *

Signboard 1500

Sub-total 1500

Working Capital

Pamphlets 200

Sub-total 200

Other Requirements

Business Card 100

Bunting 80

Sub-total 180

Total 1880


OPERATION PLAN 4.0

An operation planning is apart from administrative and marketing plan. An

entrepreneur must plan their operation activities to make sure that their products or services

will meet the customer’s satisfaction. Operation planning involves the production of product

or services according to the quantity, quality, specification and time to the customers demand

at lowest possible cost of production.

Operations management is the process of marshalling resources to produce output

through the transformation process. It also comprises the process of planning, directing,

coordinating and controlling. These are to prevent from wasting raw material. Operation

activity produce depends on the sale forecast from marketing department. So in operation

plan, good planning will help to minimized production cost whereby can get a maximum

profit.

For operation part in our company, it planning and controlling activities of all the

resources. When a company has a good planning in operation, a company can make more

productivity. Our targets are to widely our market to completely around NEGERI

SEMBILAN, to produce high quality of handicraft, to minimum the cost and try to achieve

targeted profit as well as full fill the costumers taste and needs.


The operation objectives for Operation plan are significant to our company’s vision and

mission. It is state as below:

• To ensure operational activity will run smoothly.

• To ensure the raw materials purchased will receive on time and enough as like as in

order.

• To ensure that all operation in our business is in maximum time if necessary and all

worker/driver work efficiently.

• To ensure that our company can compete with other company that already operates.

• To added the number of BUMIPUTRA Entrepreneurship.


OBJECTIVES4.1

In order to ensure the operation of business goes smoothly, effectively and meet our

operation objectives, we have decided our operation strategies.

The strategies are:

• Ensure and encourage that all partners are giving their best effort in increasing their

productivity and give full commitment to our business

• Build a good relationship especially with customers

• Apply the user friendly concept where we try to fulfill whatever customers demand

with a warm and friendly attitude

• Give guaranty to our user that all our product and services sold to customers are in

very good quality, if any damage cause by us user are allowed to ask for replacement

of product

• To achieve customer satisfaction by the services given.


OPERATION STRATEGIES 4.2

POSITION TASKS & RESPONSIBILITIES

OPERATION

MANAGER

• Responsible of the operation of the company

• Monitoring the operation activities to make sure

all business transaction is going smoothly

• Provide a good operation plan for the business

• Improve the efficiency of the operation for

example timetable of work, resources, and

others.

• Improve control of service level and quality.

• Set services level agreement for a user

department.

• To resolve daily issues and work staff to improve

customer service.

WORKERS

• Produce handicraft product or to complete a

particular job such as coloring, and weaving.

• Will coloring the rattan as what customer has

demand

• Weaving the rattan as much as can produce for

achieve the company goal profit


TASK & RESPONSIBILITIES 4.3


NAME OF SUPPLIER ADDRESS

Azreen Cane Craft

Lot 308 Kampung Tanjung Kota N.

Sembilan 71350

Malaysia

0132478724

Titicane

97, Taman Mawar , 71650 Negeri

Sembilan, Malaysia

60-06-6112322

0192653712

Markway Sdn Bhd

Lot 6, 1 ½ Storey Terrace Factory, Taman

Rawang Perdana, 48000 Rawang,

Selangor, Malaysia

603-60926269

AMVT CORPORATION SDN

BHD

No. 10, Jalan Jenaris 10, Bandar Botanic,

41200 Klang, Selangor Darul Ehsan

603-31343188

LIST OF SUPPLIER 4.4

PROCESS PLANNING 4.5

Before we make a product, the most important thing is to provide goods that follow

the high standard in term of quality, quantity, and price. So, we need to look the best

suppliers that supply our raw material, its mean this process of getting the right product into

facility at the right time and in form that meet re-established standard of quality, quantity, and

price.

Process

Find the supplier for raw material

Select and choose the right supplier

Deal with the supplier

Order the raw material or rattan

Receive raw material

Inspection all the raw material for the quality

Process of coloring the rattan

Process the rattan for produce the product craft

Keep in storage


Display craft to sell

Supply to client

The activity chart of selling craft wills identify the step-by-step processes from

beginning to end how to getting the materials, sells and return back unsold stock to the

supplier. The activities are starting with finding the supplier. Here, we are make the long

listing supplier that can supply the raw material which is rattan for our store.

Then we select and choose the right and potential supplier that can supply the rattan

and raw material to our store. All the suppliers are chosen in term of their price, location,

quality and services. We have to make sure their selling price that giving to us is lower, the

supplier’s location are nearest from our store, and the quality of rattan are good.

After we select the supplier, we will deal with the supplier by phone. Our workers

will go to the supplier after we deal with them to get the raw material for the production

process. After that, we must check the receive materials to make sure that the order are

correct. At the same time we make an inspection on all raw materials to measure the quality

of the rattan that will be use in the next process of production to make the types of product.

The next step, we start to process the rattan with color it first. Then, weave the rattan

in different types of craft product. After the craft are well process, it’s time to sell and display

the craft to our customer. Meanwhile, the craft also are to be keep in the storage for supply to

others customer or supplier.


WIDTH: 86 ft.HEIGHT: 70 ft.

Display good

Finished goods shelter

Round table – meeting area

Counter - payment


OPERATION LAYOUT 4.6

PRODUCTION PLANNING 4.7


Measure the rattan with the appropriate of the size and shape

Rattan are applied with filling color that has been received from the supplies earlier

Ensure the rattan is on the right quality

Provide a large pot and heat to boil water

Enter natural color (dye) into the

pot. Its rules to 0.9kg rattan coloring with 1 spoon of dye

Stir until smooth. Then insert the rattan

Let stand for approximately 1 hour, on-the-rattan while turning the pot had to be uniform.

It’s quite time, lift the rattan and then dry place sheltered from the sun

Began to take form of weaving that has been determined whether produce tray or food cover

Inspection the quality of handicraft

Sell and display the handicraft


The activity chart and diagram show the process of producing the handicraft in

Warisan Craft Enterprise. These identify the step-by-step processes from beginning to end

how to process the rattan becomes a handicraft. The activities for produce the handicraft

starting with measuring the rattan according it size and shape of a handicraft. Here we also

ensure that the rattans that we received from supplier are in a good quality.

After we measure and ensure the quality, we proceed with coloring the rattan which is

can give more interesting and attract customer to buy our product. We decide to coloring the

rattan with using the traditional method. It is because can save much our cost while using the

machine coloring. Next, it’s time to coloring the rattan when the pot are boiling and the color

that we need for the rattan had pour it into the pot.


After the rattan had stand in the pot about one hour and the color are uniformly, lift

the rattan and then dry place sheltered from the sun. We must lift the rattan until it exactly

dry. After that, the rattans which have been colored with natural color (dye) will proceed to

begin the weave of handicraft.

The processing of rattan had been determined what type of product to produce the

handicraft. Our company has determined two products as our first business such as tray and

food cover. These products are important for the certain people as their need and wants.

Moreover, they use as a display product or collection of handicraft.

Lastly, before we sell or display our product we will do again an inspection for the

quality of the handicraft. It is to make sure that our handicraft can be use lasting and can give

satisfy to our customer.

Manpower planning is planning to determine the planned rate of production per day for

the particular section of job. It is important to determine what total amount of salary that

needs to be given to the workers. In our company just hired 2 workers. It is important in

determining the standard time for a worker to produce one unit of product or to complete a

particular job. In our company, they will produce more handicrafts to ensure that our

company can achieve our goal and to recover our established cost to run this business, as well

as to get more profit from time to time.


MANPOWER PLANNING 4.8

For working hour, it can help in order to manage and determine the workers productive

hours. It is to ensure, that the workers done their job effectively. For example working hours

per day and rest time or workers idling time. Lastly, we will calculate the amount of direct

labor required.

Warisan Craft will operate 8 hour per day from 10 a.m. until 5 p.m. Each of workers

will get 1 day off. We will open every day, Monday until Sunday except Friday we’re off

day.

Operation hours:

SHIFT WORKING TIME REST TIME WORKING TIME

MORNING 9.00 a.m. – 12.00

p.m.

12.00 p.m. – 12.45

p.m.

12.45 p.m. – 5.00

p.m.


Position No. Monthly

Salary

(RM)

EPF

(10%)

(RM)

SOCSO

(2%)

(RM)

Amount

(RM)

Workers 2 1 000 100 20 1120

TOTAL 1120

BUSINESS & OPERATION HOURS 4.9

Business hours:

DAY BUSINESS TIME

Monday – Sunday 10am. – 5pm.

Friday Off day

For operation overhead of our business, we include the basis use of water, electricity

and as well as other basic utilities that are essentials in the operations.

1) Electricity

Electricity is the most important of basis utilities which is as the main light to lighten

and give the light to the shop. So, the electricity is the most utilities that we use, as

from at the start of our operation to the end of the day, which is 9.00 a.m. to 5.00 p.m.

RM 50 as average

2) Water bill


OVERHEAD REQUIREMENT 4.1

0

Water is also the important of basis utilities which use for doing the process. So the

water is also the most important things that we use, as from at the start of our

operation to the end of the day which is 9.00 am until 5.00 pm.

RM 70 as average

3) Telephone bill

Telephone also one of important things at our business. It gives our staff more easily

to do communication with the customers.

RM 80 as average

Total Utilities: RM 200


Raw materials for one month:

ITEMS QUANTITY

REQUIREMENT/

MONTH

SAFETY

STOCK

PRICE PER

UNIT (RM)

TOTAL

PURCHASE

(RM)

SUPPLIER

Rattan 180 kg 90 kg 0.013/1gram 3510.00 Azreen Craft &

Titicane

Gum 1 kg 0.5 kg 0.025/1gram 37.50 Markway Sdn Bhd

Color 5 liter 2.5 liter 0.70/1mililiter 52.50 AMVT

CORPORATION

SDN BHD

Others 200 unit 100 unit 0.90/unit 270.00

Total 3,870.00


OPERATION BUDGET 4.11

OPERATION BUDGET Particular F. Assets Monthly Others (RM) (RM) (RM) (RM)Fixed Asset Transport (Van) 15,600 Sub-Total 15,600 Direct Cost Direct Labor Cost Salary 1,000 SOCSO and EPF 120 Direct Material Cost 3,870 Sub-total 4,990 Overhead Costs Utilities 200 Cost of Van Maintenance 2,400 Sub-total 2,600 Other Requirements Licences & Road Tax 1,000 Sub-total 1,000 Total 24,190


Activities Month

1 2 3 4 5

1 Select location √

2 Negotiate and make agreement with the shop lot owner √

3 Apply license and permit √ √ √

4 Renovation √ √

5 Launch day √

IMPLEMENTATION SCHEDULE 4.12

The financial plan is the final step in the preparation of a business plan. It is the

most crucial aspect of the business plan and involves determining the total project cost,

choice of sources of financing and preparation of financial projections in terms of pro forma

statements, which include cash flow, income statement and balance sheet. In addition, the

financial plan should be supported by depreciation schedules for every fixed asset owned as

well as amortization schedules for loan and hire purchase repayments. The financial plan is

prepared after all budgets pertaining to marketing, operation and administrations (known as

operating budgets) are completed.

A financial plan is crucial to the overall business plan that is developed for a particular

business or project to:-

Determine the size of the investment that is the project implementation cost.

Identify and purpose the relevant sources of finance.

Ensure that the initial capital is sufficient.

Appraise the viability of the project before actual project investment is committed,


FINANCIAL PLAN 5.0

IMPORTANT OF FINANCIAL PLAN5.1

Be used as a guideline for implementation.

Control monthly activity as credit management inventory control and the receipt and

disbursement of funds.

Control monthly expenses so that it will not go up over the budget. That is to ensure

that expected income can be achieved as planned.

While doing all the above, a financial manager is also expected to balance between profit and

risk in order to achieve organization wealth. In the process he will have to communicate with

order functional area such as manufacturing and marketing.

Warisan Craft Enterprise is a partnership business. This company starts the business

with RM 44,000 of capital. The own contribution is provided by each member of this

company. The General Manager provides a capital that amounted RM 9,000 and another RM

35,000 was divided equally among the other five members of the company. The other five

members of the company have been contributed RM 7,000 per person.


TASK & RESPONSIBILITIES 5.2

SOURCE OF FINANCE 5.3

ADMINISTRATION BUDGET

Particulars F. Assets Monthly Others

(RM) (RM) (RM) (RM)

Fixed Assets*

Cashier Machine 800

Furniture 4000

Sub-total 4800

Working Capital

Salary 6000

SOCSO and EPF 720

Office Supplies 200

Rental 50

Telephone 80

Sub-total 7050

Other Requirements


ADMINISTRATION BUDGET 5.4

Registration & Licences 200

Deposit For Rental 100

Renovation Cost 1600

Telephone Registration 180

Sub-total 2080

Total 13930

MARKETING BUDGET


(RM) (RM) (RM) (RM)

Fixed Assets *

Signboard 1500

Sub-total 1500

Working Capital

Phamplets 200


MARKETING BUDGET 5.5

Sub-total 200

Other Requirements

Business Card 100

Bunting 80

Sub-total 180

Total 1880

OPERATION BUDGET



OPERATION BUDGET 5.6

(RM) (RM) (RM) (RM)

Fixed Asset

Transport (Van) 15600

Sub-Total 15600

Direct Cost

Direct Labor Cost

Salary 1000

SOCSO and EPF 120

Direct Material Cost 3870

Sub-total 4990

Overhead Costs

Utilities 200

Cost of Van Maintenance 2400

Sub-total 2600

Other Requirements

Licences & Road Tax 1000

Sub-total 1000

Total 24190


PROJECT IMPLEMENTATION COST5.7

PROJECT IMPLEMENTATION COST

Requirements RM RMCapital Expenditure Cashier Machine 800 Furniture 4000 Van 15600 Signboard 1500 Sub-total 21900 Working Capital (1 month) Administrative 7050 Marketing 200 Operation 4990 Sub-total 12240 Other Expenditure Pre-operating (Administrative) Registration & Licences 200 Telephone Registration 180 Renovation Cost 1600 Pre-operating (Marketing) Business Card 100 Bunting 80 Pre-operating (Operation) Licenses & road tax 1000 Sub-Total 3160 Overhead Cost Utilities 200 Cost of Van Maintenance 2400 Sub-total 2600 Deposits Deposit For Rental 100 Sub-total 100 Grand Total 40000Contigency Cost (10%) 4000 Total 44000


SOURCE OF FINANCE5.8

SOURCE OF FINANCE Equity Contributions RM RM Cash 44,000 Assets 0 Sub-total 44,000 External Source 0 Others 0 Total 44,000

Type of Asset Cashier Machine

Original Cost RM 800

Economic Life 5 years

Scrap Value RM 0

Method Straight Line

Annual Accumulated Book

Year Depreciation Depreciation Value

800

1 160 160 640

2 160 320 480

3 160 480 320

4 160 640 160

5 160 800 0

6

7

8


DEPRECIATION SCHEDULE5.9

Type of Asset Signboard



Scrap Value RM 0


Annual Accumulated Book

Year Depreciation Depreciation Value

1500

1 300 300 1200

2 300 600 900

3 300 900 600

4 300 1200 300

5 300 1500 0

6

7

8

Type of Asset Furniture



Scrap Value RM 0


Annual Accumulated

Year Depreciation Depreciation Book Value

4000

1 800 800 3200

2 800 1600 2400

3 800 2400 1600

4 800 3200 800

5 800 4000 0

6

7

8

Type of Asset Van




Scrap Value RM 0


Annual Accumulated

Year Depreciation Depreciation Book Value

15600

1 1950 1950 13650

2 1950 3900 11700

3 1950 5850 9750

4 1950 7800 7800

5 1950 9750 5850

6 1950 11700 3900

7 1950 13650 1950

8 1950 15600 0

USEFUL LIFE

Useful Life For Fixed Assets Years

Cashier Machine 5

Furniture 5

Signboard 5

Van 8

Depreciation Method 1

1= Straight Line 2= Reducing Balance



PRO FORMA CASH FLOW STATEMENT

Pre- 1 2 3 4 5 6 7 8 9 10 11 12YEAR

1YEAR

2YEAR

3 Operation CASH INFLOW

Owner's Capital (cash) 44,000 44,000

Cash Sales 11,750 14,100 16,920 20,304 24,365 29,238 35,086 42,103 50,524 60,629 72,755 87,306 465,080 488,344 522,527

TOTAL CASH INFLOWS 44,000 11,750 14,100 16,920 20,304 24,365 29,238 35,086 42,103 50,524 60,629 72,755 87,306 509,080 488,344 522,527

CASH PAYMENTS

Administrative Expenditure

Salary 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 72,000 75,600 80,892.00

SOCSO & EPF 720 720 720 720 720 720 720 720 720 720 720 720 8640 9072 9,707.04

Office Supplies 200 200 200 200 200 200 200 200 200 200 200 200 2,400.00 2,520.00 2,696.40

Rental 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 600.00 630.00 674.10

Telephone 80 80 80 80 80 80 80 80 80 80 80 80 960 1,008 1,078.56

Marketing Expenditure

Phamplets 200 200 200 200 200 200 200 200 200 200 200 200 2,400 2,520 2,696.40

Operational Expenditure

Raw Materials 3,870.00 4,644 5,572.80 6,687.36 8,024.83 9,629.80 11,555.76 13,866.91 16,640.29 19,968.35 23,962 28,754.40 181,930.90 191,027.44 204,399.36

Salary 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12,000.00 12,600.00 13,482.00

SOCSO & EPF 120 120 120 120 120 120 120 120 120 120 120 120 1,440.00 1,512.00 1,617.84

Utilities 200 200 200 200 200 200 200 200 200 200 200 200 2,400.00 2,520.00 2,696.40

Cost of Van Maintenance 2400 2400 2400 2400 2400 2400 2400 2400 2400 2400 2400 2400 28,800 30,240 32,356.80


PRO FORMA CASH FLOW STATEMENT5.1

0

Capital Expenditure

Cashier Machine 800 800

Furniture 4,000.00 4,000.00

Signboard 1,500 1,500

Van 15,600 15,600

Pre-operational Expenditure

Telephone Registration 180 180 Other Pre-operational Expenditure

Registration and License 200 200

Renovation Cost 1600 1600

Business Card 100

Bunting 80

Licenses and Road Tax 1000

Deposits

Deposits for Rental 100.00 100.00

TOTAL CASH OUTFLOWS 25,160.00 14,840.00 15,614.00 16,542.80 17,657.36 18,794.30 20,399.80 22,325.76 24,636.91 27,410.29 30,738.35 34,732.00 39,524.40 335,350.90 329,249.44 352,237.26

EXCESS (DEFICIT) 18,840.00 -3,090.00 -1,514.00 377.20 2,646.64 5,570.17 8,838.20 12,760.24 17,466.09 23,113.71 29,890.65 38,023.00 47,781.60 173,729.10 159,094.56 170,289.74

OPENING BALANCE 0 18,840.00 15,750.00 14,236.00 14,613.20 17,259.84 22,830.01 31,668.21 44,428.45 61,894.54 85,008.25 114,898.90 152,921.90 173,729.10 332,823.66

ENDING BALANCE 18,840.00 15,750.00 14,236.00 14,613.20 17,259.84 22,830.01 31,668.21 44,428.45 61,894.54 85,008.25 114,898.90 152,921.90 173,729.10 173,729.10 332,823.66 503,113.40


WARISAN CRAFT ENTERPRISEPRO FORMA INCOME STATEMENT

Year 1 Year 2 Year 3SALES 465,080 488,344 522,527Less : Cost of Good Sold Opening Stock - Finished Goods Add: Purchase of Finished Goods 181,930.90 191,027.44 204,399.36 Goods available for sale - - -Less : Closing Stock - Finished Goods - - - Gross Profit 283,149.10 297,317 318,128 Less : Expenses Administrative 84,600.00 88,830.00 95,048.10Marketing 2,400.00 2,520.00 2,696.40Operation 59,880.00 62,874.00 67,275.18Depreciation on Fixed Assets 3,210.00 3,210.00 3,210.00Business Registration and Licences 200.00 Renovation Cost 1,600.00 Licences and Road Tax 1,000.00 Telephone registration 180.00 Bunting 80.00 Business Cards 100.00 Utilities 2,400.00 2,520.00 2,696.40Suspended Expenses 10,000.00 10,500.00 11,235.00Cost of Van Maintenance 28800 30240 32,356.80 Total Expenses 194,450.00 170,454.00 182,161.00Net Profit Before Tax 88,699.10 126,863.00 135,967.00Tax 10% 8869.91 12686.3 13596.7Net Profit After Tax 79,829.19 114,176.70 122,370.30Accumulated Net Profit 79,829.19 194,005.89 316,376.19


PRO FORMA INCOME STATEMENT5.11

PRO FORMA BALANCE SHEET5.12


PRO FORMA BALANCE

SHEET YEAR 1 YEAR 2 YEAR 3

ASSETS FIXED ASSETS Cashier Machine 640 480 320Furniture 3200 2400 1600Signboard 1200 900 600Van 13650 11700 9750 18,690.00 19,010.00 15,740.00 CURRENT ASSETS Stock-Raw Materials 0 0 0Stock-Finished Goods 0 0 0Accounts Receivable 0 0 0Cash in Bank 173,729.10 332,823.66 503,113.40 173,729.10 332,823.66 503,113.40OTHER ASSETS Deposit 100.00 100.00 100.00 TOTAL ASSETS 192,519.10 351,933.66 518,953.40 OWNER'S EQUITY Capital 44,000 44,000 44,000Accumulated Net Profit 79,829.19 194,005.89 316,376.19 123,829.19 238,005.89 360,376.19CURRENT LIABILITIES Creditors 68689.91 113927.77 158577.21 68689.91 113927.77 158577.21 TOTAL OWNER'S EQUITY & LIABILITIES 192,519.10 351,933.66 518,953.40


FORECAST PERFORMANCE5.1

3


FORECAST PERFORMANCE

Particulars Year 1 Year 2 Year 3

LIQUIDITY Current Ratio 2.5x 2.9x 3.2x Quick Ratio (Acid Test) 2.5x 2.9x 3.2x PROFITABILITY Gross Profit Margin 61% 61% 61% Net Profit Margin 17% 23% 23% Return on Asset 41% 32% 23% Return on Equity 64% 48% 34% SOLVENCY Debt to Equity 0 0 0 Debt to Asset 0 0 0 Time Interest Earned 0 0 0

FINANCIAL RATIO (GRAPH)

Current Ratio


0

0.5

1

1.5

2

2.5

3

3.5

Year 1 Year 2 Year 3

Current Ratio

Quick Ratio

0

0.5

1

1.5

2

2.5

3

3.5


Quick Ratio

Gross Profit Margin


0%

10%

20%

30%

40%

50%

60%

70%


Gross Profit Margin

Net Profit Margin

0%

5%

10%

15%

20%

25%


Net Profit Margin

Return on Asset


0%

5%

10%

15%

20%

25%

30%

35%

40%

45%


Return on Asset

Return on Equity

0%

10%

20%

30%

40%

50%

60%

70%


Return on Equity


APPENDICES6.0





Documents

Warisan craft ent