Download docx - Business Plan Template

ENTREPRETEURSHIP

UCS 1343

BUSINESS REPORT

MAY 2014

PREPARED BY:

ADRI BIN AYUB 012013051999

VIKNESWARY SUNDRAM 012013052001

NURHANIS HAIRANI 012013051710

MUZAINA BINTI BUSIRI 012013052000

FAIZUDDIN BIN ABDULLAH 012013051955

SUBAN A/L RETINASAMY 012013030012

CHEE YEE JUIN 012013050753

KAKAJAN BABAYEN 012013050703

VIVIYANIE BINTI MOHD FAIRUL 012011030165

FAAZILA AIDA 0120100110075

PREPARED FOR:

SIR ANWAR

SUBMISSION DATE:

14 JULY 2014

Stick N Grill Sdn.Bhd

Lot 16-68, Jalan P Ramlee, Kuala Lumpur City Centre,

Kuala Lumpur, Wilayah Persekutuan

Kuala Lumpur,Malaysia.

Tel: 03-80812699

Our ref: SA/ 001 /46/ 4/ 9

Your ref:

Date:

General Manager

Maybank Berhad,

Aras 18, Menara Maybank,

100, Jalan Tun Perak,

50050, Kuala Lumpur.

Tel: 03-2074 7418

Dear Sir,

BUSINESS LOAN APPLICATION

I, Faizuddin bin Abdullah, as the General Manager of Stick N Grill Sdn.Bhd, would like to draw your attention to the matter mentioned above.

For your information, we are a new restaurant with a plan to start a business venture that serve western cuisine around Kuala Lumpur and to expand to other areassuch as Selangor and Johor.

Our business is located at Lot 16-68, Jalan P. Ramlee, Kuala Lumpur City Centre, Kuala Lumpur and all the facilities needed to operate our business can be found

there. This business has the potential to gain profits due to the unique of our food that cannot be found in any restaurant.

However, we do not have sufficient amount of capital to run the business. This business needs capital of RM 300,000.00. As for now, we only have an amount of RM 200,000.00. Therefore we would like to apply for a loan from your bank for an amount of RM 300,000.00.

We would be much obliged if you could provide a business loan. We look forward to hearing from you soon. I can be contacted at 03-8081 2699 if you wish to discuss any of the above points. We are ready to furnish you with additional materials withregards to this matter.

Thank you,

Yours faithfully,

……………………………

(Faizuddin bin Abdullah)

General Manager


BUSINESS PLAN


Consumer first choice

30th October 2014

Faizuddin bin Abdullah

General Manager

Stick N Grill Sdn. Bhd

Lot 16-68, Jalan P Ramlee, Kuala Lumpur

City Centre, Kuala Lumpur,

Wilayah Persekutuan Kuala Lumpur,Malaysia.

Telephone number: 03-80812699

Fax number: 05-4898 0088

[email protected]

Table of Contents

Item Page1.0 Introduction

1.1 Name of the company

1.2 nature of business

1.3 Industry Profile

1.4 Location of the business

1.5 Date of commencement

1.6 Factors in selecting the proposed

venture

1.7 Future prospect of the business

2.0 Purpose of Preparing a Business Plan

mailto:[email protected]

3.0 Business/Company Background

3.1 Name of the company

3.2 Address (business and correspondence)

3.3 Telephone number/Fax number/E-mail

address

3.4 Form of business

3.5 Main business activities


3.7 Date of registration and registration

number

3.8 Name of bank and account number

4.0 Background of

Owner/Partners/Directors

4.1 Personal particulars of partners

4.2 Partnership agreement

5.0 Background of Proposed Object

5.1 Physical location

5.2 Price of premise

5.3 Availability of manpower

5.4 Transportation facilities

5.5 Distance from customers

5.6 Basic amenities

6.0

Organization/Management/Administration

Plan

6.1 Organization’s mission, vision and

objectives

6.2 Organizational chart/structure

6.3 Manpower planning

6.4 Schedule of task and

responsiblilities

6.5 Remuneration plan

6.6 List of office equipments and

supplies

6.7 Administrative budget

7.0 Marketing Plan/Analysis

7.1 Description of products or services

7.2 Target market

7.3 Market size

7.4 Competitors

7.5 Market share

7.6 Sales forecast

7.7 Marketing strategy

7.8 Marketing budget

8.0 Operational Plan/Production Strategy

8.1 Operational/innovation process

8.2 Process flow chart

8.3 Production schedule/Capacity

planning-output in units

8.4 Material requirement

8.5 Machine and equipment requirement

8.6 Operation layout

8.7 Location of operations

8.8 Operational overheads

8.9 Operational budgets

9.0 Financial Plan/Strategy/Analysis

9.1 Project implementation cost schedule

9.2 Schedule of financial sources

9.3 Fixed assets depreciation table

9.4 Loan amortization

9.5 Hire purchase repayments schedule

9.6 Pro forma cash flow statements

9.7 Pro forma profits and loss

accounts/income statements

9.8 Pro forma balance sheet

10.0 Conclusion/Summary and

Recommendation

11.0 Appendices

Executive Summary/Abstract

Stick N Grill Sdn.Bhd provides variation of western cuisine at

a reasonable price. Our main objective is to become a market

leader of food industry in Malaysia within 10 years from now

and to make our restaurant become consumer first choice. The

company plans to distinguish itself from other competing

restaurant as our restaurant provides variation in western

which indirectly involve our specialization in that particular

food.

Our restaurant will be a luxurious in a form of westernizes

culture that located in one of the famous tourist attraction

in Kuala Lumpur. Our restaurant will serve all segments of

people either tourists or citizen itself. Currently there is a

competition in the same category as Stick N Grill across

Malaysia. We took this opportunity in monopolize our

geographic area in Kuala Lumpur by reaching out to tourist and

residents from any place.

Stick N Grill will operate seven days in a week under

experienced management, headed by our General Manager,

Faizuddin bin Abdullah. The company uses an organizational

structure based on functions in the organization. The

restaurant will have a Financial Advisor, Head Chef and

Marketing Manager. This structure suits Stick N Grill Sdn.Bhd

as this organization emphasizes functional specialities to

perform tasks.

This document will demonstrate the need for a business of this

calibre in Kuala Lumpur and it chances for success. It will

serve as a road map that will set the course for further

planning and for the implementation process. Anticipated

financing is RM 200,000.00 for the total start-up cost of RM

40,500.00, with RM 33,100.00 to be used as an operating funds

for the first months. This financing will help ensure a timely

start to the business in order to take advantage of the busy

streets in Kuala Lumpur.

1.0 Introduction1.1 Name of the company

Stick N Grill Sdn. Bhd

1.2 Nature of the business

Stick N Grill Sdn. Bhd is a private company that

focuses on western cuisine that meets the need of the

customers. We specialize in providing authentic and

quality western foods.

1.3 Industry Profile

The main idea for developing this business is due to

lack of western cuisine in Malaysia. We find that many

restaurants in Malaysia served common western food

such as Chicken Chop and Fish and Chips which there is

no variation in serving the customer the unique

western cuisine from America and Europe. This would

give us an opportunity in bringing variation in

western cuisine that meets the needs of customers.

Other than that, our restaurant also sells at

reasonable price which give to all segments of

customer.

1.4 Location of business

Stick N Grill Sdn. Bhd is located at Suria, Kuala

Lumpur Convention Centre (KLCC). We chose this

location because it is a strategic location for the

customer to find our place. KLCC is well known by

Malaysia due to the twin towers that located besides

KLCC. Besides, this location considered as a tourist

attraction for them to visit and convenient for

customer to find sufficient parking lots as provided

by KLCC.


Our company will commence operations on 30th October

2014.

1.6 Factors in selecting the proposed venture

We chose this business because there is an opportunity

in introducing variety of western cuisine that is not

yet exists in Malaysia. We believe that many of our

competitors served limited choice of western foods

that enable us to take an advantage in bringing new

western food in the market with reasonable price. We

also have confidence that our customers will love our

authentic food.

1.7 Future prospects of the business

Our future plans for this business is to open more

branches in Malaysia. Besides that, we hope that our

business operation will be recognized throughout

Malaysia.

2.0 Purpose of Preparing the Business Plan

This business plan is prepared by Stick N Grill Sdn. Bhd for

the purpose of obtaining a working capital loan from Maybank

Berhad for an amount of RM 300,000. This business plan is also

prepared as a guideline for managing the proposed venture.

3.0 Business/Company Background

Name of the business: Stick N Grill Sdn. Bhd

Business address: Lot 16-68, Jalan P Ramlee, Kuala Lumpur City

Centre, Kuala Lumpur, Wilayah Persekutuan

Kuala Lumpur, Malaysia.

Correspondence address: 54, Jalan USJ 4/1M, Subang Jaya,

47600, Selangor Darul Ehsan.

Telephone number: 03-8081 2699

Fax number: 05-4898 0088

Email address: [email protected]

Form of business: Private limited company

Main activity(s): Restaurant that specialize on western

cuisine

Date of commencement: 10th October 2014

Date of registration: 30th June 2014

Registration number: B1-567655

Initial (own) capital: RM 200,000

Name of bank: Maybank Berhad

Bank account number: 1173566433

4.0 Background of Partners

4.1 Personal Particulars of Partner 1:

i. Name of partners: Vikneswary A/P Sundram

ii. Identity card number of the partners: 850708-14-

6291


iii. Permanent address of the company: Lot 16-68,

Jalan P Ramlee, Kuala Lumpur


Wilayah Persekutuan Kuala

Lumpur, Malaysia.

iv. Correspondence address: 54, Jalan USJ 4/1M, Subang

Jaya, 47600, Selangor Darul

Ehsan.

v. Website address: stickNgrill.com.my

vi. E-mail address: [email protected]

vii. Telephone number:

viii. Date of birth: 08/07/1985

ix. Age: 29

x. Marital status: Married

xi. Academic qualifications: A Level in Science (2005-

2006)

Degree in Finance (2006-2009)

Charted Financial Analyst (2010-

2011)

xii. Courses attended: Establish Unique Business

(2011)

Journey to success (2012)

xiv. Experience: 2 years as Financial Officer in

Petronas Twin Tower

xv. Present occupation: Financial Analyst in Yap Seng

Berhad

xvi. Capital contribution: RM 100,000


Personal Particulars of Partner 2:

i. Name of partners: Chen Yee Juin

ii. Identity card number of the partners: 751012-10-

4675

iii. Permanent address of the company: Lot 16-68,

Jalan P Ramlee, Kuala Lumpur


Wilayah Persekutuan Kuala

Lumpur, Malaysia.

iv. Correspondence address: Jalan Akuatik 77F/16, D’

Kayangan, Seksyen 13, 4500, Shah

Alam.

v. Website address: stickNgrill.com.my

vi. E-mail address: [email protected]

vii. Telephone number:

viii. Date of birth: 12/10/1980

ix. Age: 39

x. Marital status: Single

xi. Academic qualifications: Foundation in Business

(1992-1993)

Degree in Investment Analyst

(1993-1996)

Master Degree in Economics

(2000-2002)

xii. Courses attended: Entrepreneurship Course (2009)

xiv. Experience: 4 years as Investment Analyst in Auto

Air Holdings Bhd

xv. Present occupation: Stock Broker in Bursa Saham


xvi. Capital contribution: RM 100,000

4.2 Partnership Agreement

The attached agreement is made and signed by all

partners stated below. This agreement is

witnessed by a solicitor and defendant that have been

appointed for this purpose. Below are the details

of the agreement.

4.2.1 Name of the business

Stick N Grill

4.2.2 Form of business

Partnership

4.2.3 Location of business

Lot 16-68, Jalan P Ramlee, Kuala Lumpur

City Centre, Kuala Lumpur Wilayah

Persekutuan Kuala Lumpur,

Malaysia.

4.2.4 Equity contribution

The capital of our business is RM 200,000

and the equity contributions are as follows.

1) Vikneswary Sundram RM 100,000

2) Chen Yee Juin RM 100,000

4.2.5 Financial matters

The profit and loss of the company is

distributed among the shareholders according to

the percentage of their capital equity. If one of

the shareholders is declared bankrupt or has many

liabilities or has been proven cheating, all the

other shareholders have the right to remove the

guilty shareholder.

If a shareholder does not want to continue his

or her involvement in the company, his or her

capital will be given back after the profit and loss

of the company has been taken into

consideration.

The financial manager keeps all the accounts

and all shareholders are allowed to view the

accounts.

4.2.6 Management and position

1) Vikneswary Sundram Finance Manager

2) Cheen Yee Juin Operations Manager

4.2.7 Death and dissolvement

Dissolvement depends on the agreement of all

the shareholdersin matters concerning

death or loss of sanity. However, the shareholder

should get the profit or capital until the

shareholder quits.

4.2.8 Labour rights

All shareholders should acknowledge the rights

of staff according to the law.

4.2.9 Other matters

Dismissed notice should be given by the

shareholder who wishes to quit from the business

within 30 days from dismissed date and agreed by

other shareholders. The contribution by the

shareholder can be claimed whether the

company gains profit or loss depending on the

ratio of contribution. This dismissal will be

enforced within 3 days of notice.

4.2.10 Signature of shareholders:

1) Vikneswary Sundram ………………….. 2) Chen Yee Juin …………………..

5.0 Background of the Proposed Project

Stick N Grill Sdn. Bhd has chosen Suria KLCC, Kuala Lumpur as

the location for selling its

products. The following section will explain the details of

chosen location.

5.1 Physical Location

Our premise is located in the famous shopping complex

which known as Suria KLCC that is located in Jalan

P.Ramlee, Kuala Lumpur. Suria KLCC occupies space

underneath Petronas Twin Towers and shares the parking

lot with it. The mall is accessible by KLCC LRT

Station. It also serves as one of the bus hubs for Bandar

Buses of Rapid KL. The mall also has a tunnel link to

Kuala Lumpur Convention Centre which in turn connects to

Bukit Bintang shopping district. This area has been well

known by tourist and Malaysian citizen, thus it is a

strategic location for the customers to find our place.

Furthermore, our premise is in good condition and well-

maintained. The size of our premise is 1,200 sq. feet

which consists of kitchen, customer table, smoking zone and

cashier.

5.2 Price of premise

We are renting the premise with a fixed rental rate of RM

50,000 per month.

5.3 Distance from the source of raw materials

This location was chosen because of its proximately to

road transportation where the cost of production can be

at a minimum level. The sources of our raw materials are

located in Kuala Lumpur and Selangor, therefore the

proximity to both public transportation systems ensures

that our raw materials are made available to us within a

relatively short distance and at minimal cost.

5.4 Availability of manpower

The location we chose offers credible workforce from

well-planned state such as Kuala Lumpur and Selangor. Our

labours are from many races and have good communication in

Malay and English. Hence, we have the capacity to increase or

decrease manpower depending on the job size and schedule.

5.5 Transportation Facilities

KLCC has been well-known by their public transport which

consists of Rapid LRT, Sunny Taxi and Rapid KL buses. They

have been providing their services as public

transportation for the past 15 years to the Selangor and

Kuala Lumpur residents.

5.6 Distance from customers

Our business is located near to public transportation and

commercial areas with the closest being 500 metre away

from our location. Customers can reach our premises by

three types of public transportation such as buses, taxi

and LRT and customer can also use their own vehicle where

there are sufficient of parking lots underneath the

shopping mall.

5.7 Basic amenities (electrical, water and telephone

facilities)

Our premise is located near transportation and other

shopping complex. All facilities and amenities such as

water, electricity, telephone lines and transportation are

available here. With all these facilities, we believe we

can operate our business properly. Kuala Lumpur is a

location that is fully equipped with basic amenities. All

places in Kuala Lumpur are connected by roads and

commercial buildings. Dewan Bandaraya Kuala Lumpur (DBKL),

Syarikat Bekalan Air Selangor (SYABAS) and Tenaga Nasional

Berhad (TNB) have set up water and electricity in the whole

area of Kuala Lumpur. Trash and garbage collection are

handled by DBKL. Telephone line and Internet access are

provided by Telekom Malaysia Sdn. Bhd (TM). Other

amenities that are available in Kula Lumpur are telephone

booths, public transportation, police station, fire

station, bus stops, mosque, school, public attraction

and public toilet. Other amenities which are procided by

private or individual parties are clinics, bank, Hindu

temple, Buddhist temple, petrol station, food court and so

forth.

6.0 Organization/Administration/Management Plan

6.1 Organization’s mission, vision and objectives

Table BP 1.1 shows the logo used by Stick N Grill

Sdn.Bhd and describes the company’s vision,

mission and objectives.

Table BP 1.1 Logo, vision, mission and objectives of Stick N Grill Sdn. Bhd

Logo

Vision To become consumer first

choiceMission To become a market leader of

food industry in Malaysia

within 10 years.Objectives 1) To set up franchise

network across

Malaysia.

2) To perform most variety

choice and reasonable price

of western cuisine in

Malaysia.

6.2 Organizational chart/structure

Stick N Grill Sdn. Bhd uses an organizational

structure based on functions in the organization.

The firm is divided into general manager. Under general

manager, it is divided by three which is finance and

administrative, marketing and

operation. This structure is a starting point for Stick N

Grill before expanding its business to franchising.

We believe that this organization structure will improve

individual specialities in order to perform tasks. This

organizational structure will cover all aspects

of the management as a business entity. Figure BP 1.1

illustrates our proposed structure.

Top Management

Finance and Administrative Division

Marketing Division

BOARD OF DIRECTORS

GENERAL MANAGER

FINANCE ANDADMINISTRATIVE

DIVISIONMARKETING OPERATION

FINANCE ANDADMINISTRATIVE

FINANCE ANDACCOUNTING

ADMINISTRATIVE

FINANCIALADVISOR

ACCOUNTINGQUALITYCONTROL

ADMIN

MARKETING DIVISON

Operation Division

Figure BP 1.1 Organizational Structure of Stick N Grill Sdn. Bhd

6.3 Manpower planning

Stick N Grill Sdn. Bhd has two partners and they manage and

execute the operation of the business as shown in Table BP

1.2. Stick N Grill Sdn. Bhd has one general which under

finance and administrative division, it has one financial

advisor and one accounting. Under marketing division, it has

one marketing manager. Under operation division, it has one

head chef, seven kitchen helper, five beverages, one front

office, one cashier and eight servers.

Table BP 1.2 Position and number of managing personnel in Stick N Grill Sdn. Bhd

MARKETING MANAGER

HEAD OF

HEAD CHEF FRONT OFFICE

KITCHEN BEVERAGES SERVERCASHIER

Position Number of personnelGeneral Manager 1Financial Advisor 1

Accounting 1Marketing Manager 1

Head Chef 1Kitchen Helper 7

Beverages 5Front Office 1

Cashier 1Server 8

6.4 Schedule of tasks and responsibilities

Each stakeholder has his own responsibilities to execute the

operations of the business. It is very important for every

stakeholder to know their tasks and responsibilities in the

company as it will guide them in accomplishing their tasks and

increases their specialities. Table BP 1.3 describes the tasks

and responsibilities of every position. The following

functions and responsibilities have been identified and will

be delegated to the respective individual to ensure the smooth

operation of the business.

Task/Position Responsibilities/Job PositionGeneral Manager - To plan, implement and

control the overall

management of the business.

- To plan and monitor the

strategic progress of the

business.

- To be accountable for the

overall performance of the

business.Financial Advisor - To plan and direct the

company financial stability.

- To monitor the progress of

company transactions.

- To advise top management in

terms of financial so that

money stability will secure.Accounting - To develop a daily report of

company financial activity.

- To make forecasts and

accounts for the company.Marketing Manager - To develop advertising basis

and marketing implementation.

- To implement promotion and

coupon attraction.

- Evaluate daily customer

satisfaction.Head Chef - To control the operation of

kitchen

- To be responsible in

directing and instructing

kitchen stakeholders.Kitchen Helper - Received instruction from

head chef

- Cook western food based on

customer orders.Beverages - Received instruction from

head chef

- Make beverages based on

customer orders.Front Office - To control the operation of

dining restaurant.

- To be responsible in

directing and instructing

server (waiter/waitress).Cashier - Handle daily transaction

from customer to restaurant.Server - Take customer order daily.

6.5 Remuneration plan

For our company, we have chosen the EPF (Employee Provident

Fees) and SOCSO (Social Security Organization) scheme to be

given to all employees. EPF is a compulsory savings for

employees so that they will have money to support themselves

once they retire. As a general guideline, employers are

required to contribute at least 12% of their basic salary and

company need to contribute 3% of their profits. Stick N Grill

Sdn.Bhd also provides SOCSO (Social Security Organization)

contributions to ensure that employees receive compensation in

situations of work-related accidents or illness. Table BP 1.4

illustrates the remuneration plan for each employee in Stick N

Grill Sdn.Bhd.

Table BP 1.4 Remenuration Plan

Position Number of

Employees

Remunerat

ion per

month/

Monthly

Salary

(RM)

EPF

Contribut

ion

(12%)-

Employee

SOCSO

(2%) (RM)

TOTAL

(RM)

General

Manager

1 4,600.00 552.00 92.00 3,956.00

Financial

Advisor

1 4,200.00 504.00 84.00 3,612.00

Accountin

g

1 4,200.00 504.00 84.00 3,612.00

Marketing

Manager

1 3,500.00 420.00 70.00 3,010.00

Head Chef 1 3,000.00 360.00 60.00 2,580.00Kitchen

Helper

7 1,200.00 144.00 24.00 1,032.00

Beverages 5 1,000.00 120.00 20.00 860.00Front

Office

1 2,500.00 300.00 50.00 2,150.00

Cashier 1 1,500.00 180.00 30.00 1,290.00Server 8 800.00 96.00 16.00 688.00TOTAL 27 26,500.00 3,180.00 530.00 20,855.00

6.6 List of equipment and supplies

Stick N Grill Sdn.Bhd has bought dining furniture, fittings

and equipment from Nailul Furniture Mall as listed in Table BP

1.5 below. We bought seventy sets of dining furniture, one

cash register, one system order computer and two kitchen

equipment sets.

Table BP 1.5 List of equipment and furniture

OFFICE EQUIPMENT AND FURNITURENo. Type of Equipment Quantity Price/Unit

(RM)

Price per

unit

(RM)

Total Cost

(RM)

1 Dining furniture 70 sets 1,200.00 84,000.002 System order

computer

1 sets 1,100.00 1,100.00

3 Cash register 1 sets 800.00 800.004 Kitchen equipment 2 sets 20,000.00 40,000.00

TOTAL 125,900

6.7 Administrative budget

Aside from dining furniture, fittings and equipment, Stick N

Grill Sdn.Bhd also purchased restaurant supplies such as

stationary and paper for the restaurant purposes as indicated

in Table BP 1.6. The administrative budget also includes

rental for shop lot to be paid every month to the Suria KLCC

Management. A rental deposit equal to five months’ rent and

rent utilities deposit for water, telephone and electricity

are also included.

Table BP 1.6 Administrative expenditure

Administrative expenditureRM RM

Fixed Assets/Capital expenditureDining Furniture 125,900

.00125,900

.00Working Capital/Monthly expenditureSalaries 26,500.

00Restaurant Supplies 2,500.0

0Rental 50,000.

00Utilities 1,500.0

080,500.

00Other ExpendituresRental Deposit 250,000

.00Utilities Deposit 3,000.0

0

253,000

.00TOTAL 459,400

.00

7.0 Marketing Plan/Analysis

7.1 Description of products and services

Stick N Grill is a restaurant that specializes on western

cuisine. We serve variation kinds of food along with

reasonable price. Our materials before producing to finished

goods are imported from foreign countries. Some of our foods

and beverages are not even exist in Malaysia, therefore we

would like to grab this opportunity in bringing new western

food in Malaysia with reasonable price. Our foods and

beverages is suitable for all types of customers including

veggie. Our restaurant was developed to fulfil the demands and

satisfaction of customer.

7.2 Target market

Stick N Grill Sdn. Bhd. Is a new company that is situated at

Suria, Kuala Lumpur Convention Centre (KLCC). We chose this

location because it is a strategic location for customers to

find our place. Our target market would be both local and

foreign customer of all ages. Since we are specialize in

serving quality western foods, we will get a big crowd

especially from westerners and also people who are looking for

a fine western dining with a spectacular view of KLCC scenery.

7.3 Market size

Stick N Grill intends to cater to a wide group of people. We want everyone to feel welcome and relaxed in a cozy atmospherewith a wide and varied menu. It is our goal to have "somethingfor everyone" every day on our menu. In looking at our market analysis, we have defined the following groups as targeted segments.

The Business Man: They work hard all day and often stay overnight in a strange city. He needs a competent establishment that helps impress his clients and prospects. Afterward, they want to relax and use the money they are making. They are the people that spend the most on drinks, food and tips.

Happy Couples: The restaurant will have an intimate, romantic,sophisticated atmosphere that encourages people to bring datesand to have couples arrive. Stick N Grill’s wants to be a search place where people meet each other and develop a network. These young couples are generally very successful butbalanced and won't be spending as much on drinks.

The Family: The perfect place for a family dinner. Families will come for the accommodative menu and friendly service. Theexcellent value in their meals will keep Stick N Grill’s in favor with the parents.

High-end Singles: We will attract them with our decor and layout. Our international menu, striking artwork, wine tasting

evenings and events, excellent service and engaging clientele will confirm the feeling of being in "the coolest place" in Kuala Lumpur.

Tourists: Kuala Lumpur is a city that attracts many vacationers for the whole year. Stick N Grill will be a destination with its attractive atmosphere, international menu, and outdoor patio.

7.4 Competitors (Strength and Weaknesses)

There are many competitors that we have to compete due to the restaurant that is on the same industry which is western cuisine. Table BP 1.7 shows the strength and weaknesses among competitors.

Table BP 1.7 Competitors’ strengths and weaknesses

Competitors Strength WeaknessTony Roma’s - Pioneer of baby

back ribs

- Award winning

dishes based on BBQ

ribs.

- There are more

than 250 locations

in 25 countries.

- Adapted to

international

market.

- Average level of

customer service

compare to big

hotels chain.

- Limited drink

menu can be concern

for a few

customers.

- Weak in

advertising.

T.G.I Fridays - A popular brand

name and brand

popularity.

- It is expensive

which target

certain segments of

- Separate menus

for lunch, dinner,

fast food and

alcohol.

- Nearly 1000

locations

worldwide.

customer.

- Less advertising

compared to

competitors.

7.5 Market share

Stick N Grill Sdn.Bhd speacilizes its food more on western cuisine that are from Europe and America. It is located in thegolden triangle of a shopping mall in Kuala Lumpur. We are notable to identify real market share for our business as the data is ambiguous. However, we have taken our market share as 10% of the number of population in the age of 25-65 years old who live or work in Kuala Lumpur and the areas are particularly in Jalan P.Ramlee.

Competitors

Before Entrance Adjusted Market After EntrancePercentage of market share

Amount (RM)

Percentage of lossof marketshare

Percentage of market share

Amount (RM)

Tony Roma’s

45% 90,000.00 10% 35% 70,000.00

TGI Fridays

55% 110,000.00

5% 65% 130,000.00

TOTAL 100% 200,000.00

100% 200,000.00

7.6 Sales forecast

The sales forecast for three consecutive years of the competitors of Stick N Grill Sdn.Bhd is shown in Table BP 1.9.

Table BP 1.9 Sales forecast for three consecutive years of the main competitors

Month Sales Forecast for 3 Consecutive YearsRMTony Roma’s (KLCC) TGI Fridays (KLCC)

January 500,000.00 700,000.00February 550,000.00 780,000.00April 490,000.00 690,000.00May 500,000.00 700,000.00June 650,000.00 900,000.00July 400,000.00 500,000.00August 590,000.00 810,000.00September 550,000.00 750,000.00October 450,000.00 650,000.00November 590,000.00 690,000.00December 850,000.00 1,000,000.00TOTAL YEAR 1TOTAL YEAR 2TOTAL YEAR 3

7.7 Marketing Strategy

The marketing starategy of Stick N Grill Sdn. Bhd is summarized in Table BP 1.10

Table BP 1.10 Marketing Strategy

Marketing Strategy

Description

Institutional Marketing

Promote the life style and entertainment value through blogging and social media

Program Marketing-Product and Retention Strategy

-Establish customer retention and customer engagement programs-Establish sales goals for staff to achieve-Establish promo hours to attract customer during non-peak hours

Promotion Strategy

As for our promotion strategy, Stick N GrillSdn.Bhd uses advertising method as the firststep in promoting our restaurant. There willbe printed advertisements in brochure, magazines and newspapers soon. We have also visited Petronas Twin Towers office where we

give discount coupon of 20% in our restaurant.

Pricing Strategy Our restaurant can be categorized as luxuy but it never came across us in increasing the price or target upper class customers. From the start, we are restaurants that offered to each audience, in this case, Stick N Grill have the most reasonable prices than the competitors.

7.8 Marketing budget

The marketing budget of Stick N Grill Sdn.Bhd includes capital, monthly and other expenditures as shown in Table BP 1.11.

Table BP 1.11 Stick N Grill Sdn Bhd marketing expenditure

MARKETING EXPENDITURERM RM

Other ExpendituresDiscount Coupon Rate

30,000.00

Promotion 4,000.00Grand Opening 5,000.00TOTAL 39,000.00

8.0 Operational Plan / Production Strategy

8.1 Operational/innovation process

To date, we have completed our market research and lease has been secured located in Suria KLCC area. Food and furniture purchased have been pre-negotiated. The next steps in the operational plan are as follows :

8.1.1 Sign lot lease within 30 days

8.1.2 Sign equipment and raw material purchased order

8.1.3 Accept delivery of equipment and raw material

8.1.4 Received employee and training chef

8.1.5 Print marketing material

8.1.6 Open business

8.1.7 Launch advertising and promotional plan

8.2 Process flow chart

Process flow chart for Stick N Grill Sdn. Bhd.

ORDER RAW MATERIAL FROM THE SUPPLIER

SETTLE SHIPPING AND DELIVERING OF RAW MATERIAL

EMPLOYEE CHECK THE QUANTITY OF THE DELIVERED PRODUCT

RECEIVED DELIVERED RAW MATERIAL AND STOREDIT INTO FRIDGE

TAKE ORDER FROM CUSTOMER

PREPAIRED AND COOK MENU THAT CUSTOMER WANT

READY TO BE SERVED

8.3 : Production schedule/capacity planning

NO TIME OF PRODUCTION QUANTITY OFPRODUCTION

GOODS PER MONTH

1. MONTHLY PRODUCTION 30 BOX OF FISH(1 BOX=30KG FISH)

900KG FISH

70 BOX OF CHICKENS(1 BOX=50KGCHICKENS)

3500KG CHICKENS

100 BOX OF MEATS(1 BOX=60KG MEATS)

6000KG CHICKENS

40 BOX OF LAMBS(1 BOX=40KG LAMBS)

1600KG LAMBS

8.4 Raw material requirement

We calculated our raw material based on our sales per month. Our monthly sale is 110900kg. By dividing the sales per month to the capacity of box, we can get the total number of the boxes that is needed in a month 240 boxes. The cost of the item is based on the quantity per kg. Hence, the table show the cost of different item per month :

NO ITEM QUANTITYREQUIRED

SAFETY STOCK

PRICE PERKG (RM)

SUPPLIER

1. FISH 900KG 650.00

2. CHICKEN 3500KG 1500.85

3. MEAT 6000KG 2350.50

4. LAMB

TOTAL

1600KG 2120.45

6621.80

8.5 Machine and equipment

We required our operatios to transfer the raw material from the lorry to our restaurant efficiently. The cost of this transport is RM15,000.

NO PARTICULAR QUANTITY SUPPLIER PRICEPERUNIT(RM)

TOTAL AMOUNT(RM)

1. Lorry 2 Hana Transport Sdn. Bhd.

15,000 30,000

8.6 : Location of operation

8.7 : Operation layout plan

The operation layout paln of Steak N Grill Sdn. Bhd. Is shown below :

8.8 : Operational Budget

OPERATIONAL EXPENDITURE RM RMFIXED ASSET / CAPITAL EXPENDITURE

Kitchen 50,000Lorry 30,000

80,000.00WORKING CAPITAL/MONTHLY EXPENDITURELorry driver salary (2 person) 2,000Employee Salary (10 person inc chef, manager)

20,000

utilities 2,000Rent 5,500Electric and water bill 350

29,850.00OTHER EXPENDITURES-

TOTAL 109,850.00

9.1 Financial Strategy Analysis/Plan

Project implementation cost schedule

Steak N Grill Sdn Bhd fixed assets including shop lot, kitchen

equipment, furniture and fittings which cost a total of RM

60000. The restaurant’s working capital for three months of

administration, marketing and operation cost is RM 36000.

Other expenses such as business registration, insurance and

sundries together with the deposit costs RM 7100. Therefore

our total project implementation costs amount of RM 103100 as

shown in the table below. We might also add a contingency cost

(10 percent) to manage any variances that might occur between

the actual expenditure from the budgeted expenditure.

Table 9.1: Project Implementation Cost Schedule

STEAK N GRILL SDN BHD

PROJECT IMPLEMENTATION COST

REQUIREMENTS

COST

RM RM

FIXED ASSETS

SHOPLOT 23000

EQUIMENTS 15000

FURNITURES 10000

FITTINGS 2000

SUBTOTAL 60000

WORKING CAPITAL

ADMINISRATION 3000

UTILITIES 1000

SUBTOTAL 4000

MARKETING

PROMOTIONAL COST 12000

SUBTOTAL 12000

OPERATIONS

OVERHEAD COST 20000

SUBTOTAL 20000

OTHER EXPENDITURES

PRE-OPERATING

BUSINESS REGISTRATION 100

SUBTOTAL 100

DEPOSITS

UTILITIES/ PHONE/ WATER/ ELECTRICITY

2000

RENTAL 5000

SUBTOTAL 7000

TOTAL 103100

CONTIGENGIES (10%) 10310

GRAND TOTAL: RM 113410

9.2 Sources of Finance

The breakdowns of financial sources are shown in table below.

The financing sources required will be obtained from our own

capital amounting to RM 200,000.00 whereas the balance of RM

300,000.00 will be obtained through financing from Maybank.


SCHEDULE OF FINANCING SOURCES AT YEAR 2013 SOURCES COST(RM)

A. EQUITY/

OWN CONTRIBUTION CASH 200,000.00

B. EXTERNAL SOURCES BANK LOAN 300,000.00

C. OTHERS 0 TOTAL 500,000.00

9.3 Fixed Assets Depreciation/Schedule

The depreciation schedules of Steak N Grill Sdn Bhd fixed

assets are shown in table below.


DEPRECIATION SCHEDULEFIXED ASSET KITCHEN

EQUIMENTS

ORIGINAL COST

OF ASSET

15000 (RM)

METHOD STRAIGHT LINE

METHOD

ECONOMIC LIFE 10 YEARS

YEAR ANNUAL

DEPRECIATION

ACCUMULATED

DEPRECIATION

BOOK

VALUE0 - - 150001 1500 1500 135002 1500 3000 120003 1500 4500 105004 1500 6000 9000

5 1500 7500 75006 1500 9000 60007 1500 10500 45008 1500 12000 30009 1500 13500 150010 1500 15000 0

ANNUAL DEPRECIATION : ORIGINAL COST OF ASSET/ ECONOMIC LIFE

: RM 20000/ 10

YEARS

: RM 2000


DEPRECIATION SCHEDULEFIXED ASSET FURNITURES AND

FITTINGS

ORIGINAL COST

OF ASSET

15000 (RM)

METHOD STRAIGHT LINE

METHOD

ECONOMIC LIFE 10 YEARS

YEAR ANNUAL

DEPRECIATION

ACCUMULATED

DEPRECIATION

BOOK

VALUE0 - - 120001 2400 2400 9600

2 2400 4800 72003 2400 7200 48004 2400 9600 24005 2400 12000 0

ANNUAL DEPRECIATION : ORIGINAL COST OF ASSET/ ECONOMIC

: RM 12000/ 5 YEARS

: RM 240

9.4 Loan Amortization Schedule

Table below shows the loan amortization schedule of Steak N

Grill Sdn Bhd.


LOAN AMORTIZATION REPAYMENT SCHEDULE

LOAN AMOUNT 300,000.00

(RM)

INTEREST RATE 10 PERCENT

LOAN PERIOD 5 YEARS METHOD REDUCING

BALANCEYEAR PRINCIPAL INTEREST TOTAL

PAYMENT

PRINCIPAL

BALANCE0 - - 300,000.001 60,000.00 2,000.00 62,000.00 240,000.002 60,000.00 1,900.00 61,900.00 180,000.003 60,000.00 1,800.00 61,800.00 120,000.004 60,000.00 1,700.00 61,700.00 60,000.005 60,000.00 1,600.00 61,600.00 0

PRINCIPAL: LOAN AMOUNT/ LOAN PERIOD

: RM 300,000.00/ 5 YEARS

: RM 60,000.00

INTEREST: LOAN AMOUNT × INTEREST

: RM 300,000.00 × 10%

: RM 30,000.00

9.5 PRO FORMA CASH FLOW STATEMENT

Table below shows the pro forma cash flow statement of Steak N

Grill Sdn Bhd throughout the planned period.


PRO FORMA CASH FLOW STATEMENTMONTH 1 2 3 4 5 6 7 8 9 1

0

1

1

1

2

TOTAL YEAR 2 YEAR 3

CASH INFLOWSOWNER’S

CAPITAL (CASH)

200,00

0BANK

LOAN

300,00

0CASH SALES 240,00

0.

350,00

0

400,00

0COLLECTION

OF ACCOUNTS

RECEIVABLETOTAL

CASH

INFLOWSCASH PAYMENTSCAPITAL

EXPENSESEQUIPMENT 30,000

.00FURNITURES

AND FITTINGS

70,000

.00ADMINISTRATIVE

EXPENSESSALARIES 80000 80000 80000EPF AND SOCSO 15000 15000 15000ADMIN

OVERHEAD

6000 6000 6000

RENTAL 60000 60000 60000MARKETING

EXPENSESPROMOTION 12000OPERATIONAL

EXPENSESRAW MATERIAL 80000 100000 120000DIRECT

LABOUR

30000 30000 30000

OPERATIONAL

OVERHEAD

6000 6000 6000

FINANCIAL

EXPENSESPRINCIPAL 50000 50000 50000INTEREST LOAN

REPAYMENT

8000

OTHER

EXPENSESDEPOSIT 6000TOTAL CASH

OUTFLOWS

308000 347000 367000

EXCESS/

(DEFICIT)

82000 3000 33000

OPENING 0 82000 85000

BALANCECLOSING

BALANCE

82000 85000 118000

9.6 PRO FORMA INCOME STATEMENT

Table below shows the income statement of Steak N Grill Sdn

Bhd.


PRO FORMA INCOME STATEMENT RM RM

SALES 240,000LESS: COST OF SALES

( GOODS SOLD)OPENING

STOCK : RM0PURCHASES

: RM 100,000GOODS AVAILABLE FOR

SALES : RM 100,000LESS : CLOSING STOCK

: RM

15,000(85,000)

GROSS PROFIT 155,000LESS EXPENDITURE/

OPERATING EXPENSESADMINISTRATIVE

EXPENSES

120,000

KITCHEN

EQUIPMENTSFURNITURES AND

FITTINGSMARKETING

EXPENSES

120,00

PROMOTIONBUSINESS CARDBANNERPOSTEROPERATIONAL

EXPENDITURE

122,000

FINANCIAL

EXPENDITUREINTEREST ON

BANK LOAN

30,000

DEPRECIATION ON

FIXED ASSET

11,000

OTHER

EXPENDITUREMISCALLANEOUS 1,000

TOTAL EXPENITURE/

OPERATING EXPENSES

154,000

NET PROFIT/ LOSS 1,000

BEFORE TAXTAXNET PROFIT/ LOSS

AFTER TAXACCUMULATED NET

PROFIT/ LOSS

9.7 PRO FORMA BALANCE SHEET STATEMENT

Table below shows the pro forma balance sheet statement of

Steak N Grill Sdn Bhd.

RM RMASSETSFIXED ASSET

(NON CURRENT

ASSET)FURNITURE AND

FITTINGS

70,000

KITCHEN EQUIPMENT 12,00082,000

CURRENT ASSETSSTOCK OF

FINISHED GOODS

150,000

ACCOUNTS

RECEIVABLECASH BALANCE 82,000BANK

150,000

OTHER ASSETSDEPOSIT 60,000

60,000TOTAL ASSETS 130000OWNERS EQUITYCAPITAL 200,000ACCUMULATED

PROFIT

1000

151000NON CURRENT

LIABILITIESBANK LOAN 300,000CURRENT LIABILITIESACCOUNTS PAYABLEREVENUE (121000)TOTAL EQUITY AND

LIABILITIES

130000

\

Table below shows the pro forma balance sheet statement for

Steak N Grill to show the company’s position for its assets,

liabilities and owner’s equity at the end of financial year.

STEAK N GRILL SDN

BHD

PRO FORMA BALANCE SHEET STATEMENT FOR THE YEAR

END 31 DECEMBER 2014

RM

RMASSETS EQUITY AND

LIABILITIESNON CURRENT

ASSETS

OWNERS EQUITY

FURNITURES AND

FITTINGS

12000 CAPITAL 150000

KITCHEN

EQUIPMENTS

15000 ACCUMULATED

PROFIT

1000

CURRENT ASSETS NON CURRENT

LIABILITIESSTOCK OF

FINISHED GOODS

15000 BANK LOAN 100000

ACCOUNTS

RECEIVABLE

CURRENT

LIABILITIESCASH BALANCE 82000 ACCOUNTS

PAYABLEBANK REVENUE (121000)OTHER ASSETSDEPOSIT 6000TOTAL ASSETS 130000 TOTAL EQUITY

AND

LIABILITIES

130000

10.0 Summary/Conclusion

As a summary, Stick N Grill Sdn.Bhd is a company that wants to

venture into food industry. This restaurant is solely unique

from others due to the variation of western cuisine.

Furthurmore, Stick N Grill Sdn.Bhd has increase its effort by

making the menu interesting that will attract many group of

customers. This approach is important in order to capture the

market attention.

In connection with that, we aim to serve western cuisine that

meets the needs and satisfaction of the customer. Stick N

Grill Sdn.Bhd will continuously use promotion and advertising

approach in order to gain consumers attention. Based on the

planning and projection, we are very confident that this

business venture will create a very satisfactory return on

investment from the third year of operation. For the first

year, we are estimating of sales and expenses minimal due to

the fact that the company has just started the operation.

The business will continuously implement strategy especially

on the marketing approach to ensure that the business is very

well known to the customers and we hope to build loyal

customer base in the third year of operation. We hope this

application of financing will be given due consideration from

Maybank Berhad for us to start business. We also hope our

business will increase national economy and bring much welfare

to the society.

11.0 Appendices

- Letters expressing interest to buy the product or services

- Questionnaires used to collect data as part of marketing

research

- Resumes of the key management team and key technical

advisors

- Promotional discount coupon or advertisements that describe

the product and service.