FACULTY OF HOTEL AND TOURISM MANAGEMENT

DIP. OF FOOD SERVICE . MANAGAMENT

ENTREPRENEURSHIP
ETR 300

PREPARED BY:MUHAMMAD YUSNIZA YUNUS ASLIN ABD SANI NOR HAFIZAH ZAINAL ARIF NOREHAN MOHD IDRIS NORAFIDAH RQSLI 2000469128 2000469254 2000469684 2000468816 2000468942

PREPARED TO:PROF. MADYA BAHARUDIN BIN ISMAIL DATIN HAZARAH BIT MUHAMMAD

ACKNOWLEDGEMENT

In the name of ALLAH, The Most Beneficent, The Most Merciful First and foremost, we would like to express our thanks and gratitude to our lecturer, Prof. Madya Baharuddin for the advice and guidance in order to us to explore something new in our life. Thank also to all owner flower shop that has given the cooperation to us during our survey time. To our family and not to forget to our friend for their cooperation, encouragement, moral support, pride and joy towards completing this precious project Wc also would like to thank to other whose names not mentioned on the team credits but made a significant contribution upon the compilation of this Lovely Blossom business plan. Last but not least, thanks again to the people and groups mentioned above and we as ETR 300 student are very grateful to them for their contribution and cooperation that helps a lot in the completion of this business plan.

May Allah S.W.T bless our works...

TABLE OF CONTENTS

1..EXECUTIVE SUMMARY 2. PURPOSE OF THE BUSINESS PLAN 3. BUSINESS BACKGROUND 4. SHAREHOLDER BACKGROUND 5.ADMINSTRATIONPLAN 6. MARKETING PLAN 7. OPERATION PLAN 8. FINANCIAL PLAN 9. SUMMARY 10. APPENDICES

EXECUTIVE SUMMARY
For fulfilling the Business Plan (ETR 300) we came up to make a type of business. We choose to run this company; LOVELY BLOSSOM SDN BHD is fully by Bumiputera. This nature of business isflowershop and our products are mostly based on flowers. Our location of this business is G31, Ground Floor, PKNS, 40450 Shah Alam, Selangor. We have chosen this location because of its strategic site. It is situated in place of fully community, near the 5 Stars Hotel and easy to find. From what we have planned, we have decided to start our business on 1st January 2006. There are a few factor affecting our decision in selecting this business. a) We want to gain maximum profit through the business because there is no one to do this business like this. b) We want to be thefirstcompany with mis type of business. We know that mis business has varied bright future because of bright demand, which rapidly nowadays. The increment of the tourist from outside and local also will be the encouragement for us to do this business. Our products are sold to all customers, either tourist from local or outside. In running this business, we have 9 workers consists of general manager, administration, marketing, operation and financial manager. Our business will operate from Monday to Sunday. So, our business is operating everyday and will operate from 10.30am until 10.30pm.

Our future prospect of this business is to open as many branch as we can. To earn more profit and we wish to expand our company all over Malaysia and also over the world There are 5 shareholders on this business. For the General Manager, he gives RM 20000.00 and for each shareholder gives RM10000.00. Besides that, we also apply loan from Maybank that is RM50000.00.

BUSINESS PLAN PURPOSE

The main purposes of preparing a business plan are: 1. To evaluate the project viability and growth potential. 2. To appry for loans or financing facilities from relevant financial institutions. 3. To act as guideline for the management of the proposed business especially in administration, marketing, operation and financial 4. To allocate business resources effectively.

BACKGROUND OF BUSINESS

BUSINESS NAME

LOVELY BLOSSOM SDN. BHD.

BUSINESS ADDRESS

G31 Ground Floor PKNS Complex 40450 Shah Alam, Selangor

CORRESPONDENCE ADDRESS

G31 Ground Floor PKNS Complex 40450 Shah Alam, Selangor

TELEPHONE NUMBER FORM OF BUSINESS MAIN ACTIVITY

03-55649864 Florist Flower Service Arrangement and Delivery

DATE COMMENCEMENT OF BUSINESS DATE OF BUSINESS REGISTRATION BUSINESS REGISTRATION NUMBER NAMA OF BANK BANK ACCOUNT NUMBER

1 January 2006 -Pending-PendingMaybank -Pendine-

EQUITY CONTRTBUTTON GENERAL MANAGER ADMINISTRATION MANAGER MARKETING MANAGER OPERATION MANAGER FINANCIAL MANAGER : RM 20,000 : RM 10,000 : RM 10,000 : RM 10,000 :RM 10,000

TOTAL EQUITY CONTRIBUTION : RM 60,000

BACKGROUND OF PARTNERS
PARTNER 1 (GENERAL MANAGER) NAME VC NO DATE OF BIRTH AGE GENDER PERMANENT ADDRESS Mohammad Yusniza Bin Yunus 820111-10-5045 11 Jan 1982 21 years Male No 407 Block 17 Sec 6, 40000 Shah Alam, Selangor PHONE NO ACADEMIC QUALIFICATION 012-2247225 Diploma In Foodservice Management MARTTALSTATUS -eeRRENTnJOB Single

Student

PARTNER 2 (ADMINTSTRATFON MANAGER) NAME 1/C NO DATE OF BIRTH AGE GENDER PERMANENT ADDRESS Norehan Binti Mohd. Tdris 820712-08-5828. 12 July 1982 21 years Female 419FeldaTrolakUtara, 35600 SungkaiPerak PHONE NO ACADEMIC QUAUFICATTON 019-5739624 Diploma In Foodservice Management MARITAL STATUS Single

CURRENT JOB

Student

PARTNER 3 (MARKETING MANAGER) NAME VC NO DATE OF BIRTH AGE GENDER PERMANENT ADDRESS Nomfidah Rinti Rosli 820517-10-5176 17 May 1982 21 years Female 28 AKampung Pasir, XJlu Yam Bharu, 444300 Selangor PHONE NO ACADEMIC QUALIFICATION 012-3551475 Diploma In Foodservice Management MARITAL STATUS Single

CURRENT JOB

Student

PARTNER 4 (OPERATION MANAGER) NAME I/C NO DATE OF BIRTH AGE GENDER PERMANENT ADDRESS Aslm Rinti Abd Sani 821205-01-5248 5 Dec 1982 21 years Female 74 Man Wawasan 3, Kg. MelayuBaru, 81550 GelangPatah, Johor PHONE NO ACADEMIC QUALIFICATION 013-7268401 Diploma In Foodservice Management MARITAL STATUS Single

CURRENT JOB

Student

PARTNER 5 (FINANCIAL MANAGER) NAME VC NO DATE OF BIRTH AGE GENDER PERMANENT ADDRESS NorHafizah Binti Zainal Arif 820529-05-5356 29 May 1982 21 years Female 334, Taman Bahagia Delima, 72000 Kuala PilahN.Sembilan PHONE NO ACADEMIC QUALIFICATION 013-3728789 Diploma In Foodservice Management MARITAL STATUS Single

CURRENT JOB

Student

10

AGREEMENT OF PARTNERSHIP
This letter will be sign by all the shareholdWin LOVELY BLOSSOM SDN. BHD. This letter is about our agreement before staring our business. It must be unanimous consents from all existing partner between: 1 NAME IC NUMBER ADDRESS : Mohammad Yusniza bin Yunus 820111-10-5045 No 407 Block 17 Sec 6, 40000 Shah Alam, Selangor

11

NAME IC NUMBER ADDRESS

Norehan binti Mohd Idris 820712-08-5828 419 Felda Trolak Utara 35600 Sungkai, Perak

111

NAME IC NUMBER ADDRESS

Nor Hafizah Binti Zainal Arif 820529-05-5356 : 334, Taman Bahagia Delima, 72000 Kuala Pilah, N.Sembilan

IV

NAME IC NUMBER ADDRESS

Norafidah Binti Rosli 820517-10-5176 28 A Kampung Pasir, Ulu Yam Bharu, 44300 Selangor

NAME IC NT JMBRR ADDRESS

: Aslin binli Abd Sani : 821205-01 -5248 : 74 Jalan Wawasaa Kg, Melayu Baru 81550 Gelang Patah, Johor

We all agreed to be sliareholders on handling Hw business and agreed to follow all the term and condition stated below: a) This agreement will started on 1st JANUARY 2006 and will continue until a certain time as agreed. b) This business will be located at G31 Ground Floor, PKNS Complex, 40450 Shah Alam, Selangor. c) Each of the shareholders will contribute RM 10,000,except the General Manager, he will contribute RM 20,000 for the asset in this company. The sum of assets is RM 60,000. d) Each of the shareholders will have their post in this company based on qualification of handling on specific tasks not on our share or capital. e) f) The profit gained will be divided equally except for the general manager. All agreement in this paper can be rewrite or modified in one memorandum that contains the changes made in memorandum and must be agree by all the shareholders.

12

AH of the shareholders must give all commitment and full support and also us& all their effort expertise and their knowledge to heh? buQd and widen the business. A H of the shareholders are governed by the partnership act 1961. Dissolution of the shareholders must be by a unanimous consentfromall existing shareholders or majority voice. The deal or bankruptcies of any shareholders that win cause mis agreement liquidated are abundant. If tliere is death or any accident to the shareholders that wiH be stop him to continue this business, cither one of the agreed shareholders or his family can claim for their compassion.

13

INTRODUCTION TO ADMINISTRATION PLAN

Usually, in such organization, administration department plays an important role in ensuring the business to run smoothly and systematicaEy. This administration plan is one of the plans in our business organization. Our company may face a lot of problem without this administration functions. This plan is a total control to this organization so that we can result in the highest level of productivity and services in effective and efficient ways. Each organization in the business has it own objectives and mission as to improve the business capability. This objectives and missions also are needed to make sure the establishment the business achieves its aim to become firm and popular in this field.

14

ORGANIZATION MISSION

Every organization must have their mission in order to achieve goal. Our missions for Lovely Blossom are: 1. To get maximum profit 2. To be the first entrepreneur running in this business. 3. To be successful entrepreneur in this type of business. 4. To help increase our economy level.

15

ORGANIZATIONAL OBJECTIVES
It is know that administration plan is crucial part in any business Without a systematic management, all of the business operation will not run smoothly. That is why in Lovely Blossom, a systematically plan has been planned to ensure that mis company will work smoothly as we want. To ensure the organization smooth, administration department will try the best to achieve goal This department will also not forgetting the needs and

requirements for the holders We try to build good spirit in working and always give the best to all of our shareholders while they doing the job To match with our concept, we will ensure that our services are the best and satisfaction guaranteed This is not just based on our flower but also to our services,

because to us. without the customer, others will never known us At the first step of our business, we try to tackle all of our difficulties and weakness, beside that we are trying to get the maximum profit as we can from this

'rolling stone' of ours Our product and services is the best among all

16

ORGANIZATION STRATEGIES
To make sure our company objectives become reality, strategies are important element for a business company. An effectives and planned strategy will make a company operate smoothly to achieve die great profits. Our strategies are: 1. To create and prepare the organization's objectives by developing a company policies and strategies so that this business can achieve its goals efficiently and effective ways. 2. Job is divided according to qualification in order to ensure the right person handles every task smoothly. 3. To plan marketing program and the type of services that we should provide by giving reasonable price. This is because price and cost controlling arc important aspects to be given priority in order to avoid loss and gaining profit. 4. To make sure our quality of product and services and selling can attain customer satisfaction and try to attract competitor's customer. 5. To identify the problems arise and the competitors that existed in the business. 6. To measure the organization performance whether it is increasing or decreasing. 7. To maintain clean image so that customers is attracted with our services. 8. All decisions and controlling should be done in the organization's meeting 9. To ensure all tasks is being carried out smoothly and also ensuring all workers communicate among themselves 10. Try to avoid dissatisfactions among the shareholders.

17

11. Monthly meeting with the shareholders to identify whether there are problems with their works. 12. Avoid trouble or problems while dealing with supplier. 13. Increase customer's confidence when buying our products by giving good services. ] 4. Progress an efficient management system, discipline and competitive.

18

LOCATION PLAN

'^Sto*.^

/ -' T^kf

We are here

19

LOCATION PLAN

B US1NESS ADDRESS:

G-31 ground floor, Korapleks PKNS 40450 Shah Alam, Selangor

INFRASTRUCTURE: 1. Transportation PKNS is the center of business place, and near with the other shopping complex, so people can easily go there. Beside that, public transportation also provided. 2. Utilities Public phone is located everywhere Near with the others shopping complex Surau is provided

20

LOVELY BLOSSOM SDN BHD ORGANIZATION CHART

General Manager Mohammad Yusniza Yusuf

i

L
Administration Manager Norehan Mohd Idris

_
Operation Manager AslinAbdSani NorHafizahZainalArif

cs

Norafidah Rosli

General Worker

LIST OF THE ADMINISTRATION PE RSONAL

POST General Manager

NO. OF WORKER 1

QUALIFICATION

SOURCES

Dip. In Foodservice management Dip. In Foodservice management Dip. In Foodservice manaaement Dip. In Foodservice manaaement Dip. In Foodservice management SPM

Shareholder

Administration Manager

Shareholder

Marketing Manager

Shareholder

Operation Manager

Shareholder

Financial Manager

Shareholder

Employees

Xone

LIST OF ADMINISTRATION POST AND THEIR TASK MAIN TASK As the represented of the company Managed all the final management that is done by the shareholder Always fair to all the employees Try to solve the pioblem with the help of the shareholders to achieve the company's goal Always known what's going on the company Rule the general management of the business to be parallel with the customer's desires Administration Manager Handle all the administration problems Calculates all the administration budget and try to minimize budget Prepares problems Sets up all the remuneration and all the managers task easier Marketing Manager Ensure that employees welfare is protected Search for new marketing chances Plan a new and also improved strategy yearh Anah zed the company 's potential in its growth -I the structures the administiation

Explore the weakness and also the strength of the company and try to make an improvement

Operation Manager

Ensure that all equipment and material are in good circumstances

Estimate all the operation cost and budgets Make certain that all the production process is in good situations

Define all operations needed yearly Handles the suppliers and make good

impression of the company to them Finance Manager Prevents overflow money Make certain that all accounts are in well balanced and stable Foresee the profit and loss of the business yearly Plans and predicts on how to get finance sources to make this business success Employees Formulate the finance sheets yearly Help operation manager works Do the job with the good services Always gives the good services and tiy to help the management staff improve the companies

24

REMUNERATION TABLE
POST General Manager Administration Manager Marketing Manager Operation Manager Financial Manager Employees NO. OF STAFF 1 SALARYAVAGE PER MONTH 1200 EPF (12%) RM144 SOCSO (2%) RM24 TOTAL RM1368

900

RM108

RM18

RM1026

900

RM108

RM18 -

RM1026

900

RM108

RM18

RM1026

900

RM108

RM18

RM1026

500

RM60

RM10

RM570

TOTAL

5300

636

106

RM6042 i

25

PRIVILEGE GIVEN FOR EMPLOYEES

Salary

In our company, salaries are given at the end of the month. So it is easy for a company to measure the expected salary for every worker. If the business showing an advance and the payment is made, changes in salary will be considered. Increasing of salary is depends by staff productive and company profit. Work hour

Our company gives 1 day's holiday for every week. Worker can choose any day that they want and this day is fixed for two month. Workers only can change their off day after month because the work schedule only change after two month. Day chosen also depend on worker shift. Medical leave

Workers can have a chance at most six day off with full salary if workers give medical certificatefroma business panel clinic. Annual leave

Leave application must be done a week before the date. Annual leave for management department are 20 days and general worker are 114 days. This annual leave is given by agency and excluding the emergency leave Bonus

Bonus will be given to the workers. Bonus are given two time a year but the bonus only given for the woiker who have been woik at least six month. The bonus will be given in the form of half

26

EMPLOYEES INTENSIVES In every company, there will be intensrves for their employees. These necessities are important as it according to the employees commitment and also rules from the government. In "Lovely Blossoms" the employees will get more incentive from the management staff. The reason is to make the employees work hard and improve their productivity and performance of work. These are the incentives that are been given to our employees: Bonus

Employees will be given bonuses to all workers if the company has more profit will give half from the salaries M.C or Medical Leaves

All the staff allowed taking medical leaves if they are sick. The M.C certificate must get from the hospital, clinic or any pharmacy that the staffs go. Therefore the management staff will take the certificate as the proof and to be kept as the record EPF

EPF are charge 12 percent from salaries and it is the saving account for the workers from the company. It is long term and it can be used for old days

socso
SOCSO are given to all employees where the charge about two percent from the salaries. It can protect to all employees and leads them to a bright future. It also may used for the emergency cases and it can help in solving the workers problem

27

LIST OF THE OFFICE EQUIPMENT

ITEM Desk Meeting Desk Telephone Facsimile Chair " Cash Register

QUANTITY 6 1 2 1 16 "1 ~ "

TOTAL (RM) 870 200 140 120 870 500

! TOTAL

2700

28

ADMINISTRATION BUDGET

ITEM

ASSET EXPENDITURE (RM) 10000 2700 4500

MONTH EXPENDITURE (RM)

YEAR / EXPENDITURE (RM) /

OTHER EXPENDITURE (RM)

Fixed asset; Renovation Fixtures Computer Monthly expense; EPF SOCSO Rent___ BUI; 1) Watei I) Electricity 3) Telephone Other expenses: Deposit: 1) Water 2) Electricity 3) Telephone 4) Rental Registration Insurance l)van Road Tax Business License Company Register

i
L_

5300 636 106 1500 100

200 200

63600i 7632 1272

180C

1203
240C

200 400 400 3000

^ ~1A

1500 600 16a 2500

TOTAL

17200

8042

96504

8810

29

ADMINISTRATION BUDGET (YEARLY BUDGET)

ITEM Monthly expenses Salary EPF

YEARl(RM)

YEAR2(RM)

YEAR3(RM)

63600 7632 1272 ~| " " _ 9000 " ___ 2400" ~" " 2400 ,
i

63600 7632 1272 [2600 " '

63600 7632 1272 " 14400

socso
i Rent ! Bills;
!
I

_______ b) dectrkit\ ' "cTldephon.

__ 2448 2448" ~ ~

124818 2496.90 " ~2496.96~

'

^TOTAL~

87504

91224

93145.40"

We assume there is an increment 2% for bills for every year. There is no increment in salary for the first 3 years

30

INTRODUCTION TO MARKETING
Marketing is a social and managerial process whereby individual and groups obtain what they need and want through creating and exchanging products and values with others. It is also means the performance of business activities lhat direct the flow of goods and services from producer to customer or user. Marketing as the process of planning and executing the executing conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives. Marketing is one process of making business. It is because marketing planning must be systematic and takes many factors for making much sale of product. In the other words, marketing is a definition of an action to do with systematically making high sales without even jeopardizing the rules of religion and humanity. A written marketing plan provides clearly stated that help an organization of business to understand and work toward the common goals. It also serves as the reference point for the success of the activities. On the "Lovely Blossoms Sdn Bhd" comes out with very strong and strategicalry marketing plan to ensure a profitable business. The businesses were in small-scale business with a wide range of a market. We are confident that our business are still under par and concerning the satisfaction to our customer needs and wants as well as contributing towards profits for the business.

31

MARKETING OBJECTIVES
a) To provide goods and services to the public and our customer b) To ascertain the sales level will increase for every month c) To assured that our percentage of profit is increase eveiy year d) To make sure that public and our customer comfortable with services provided e) Grand promotion will be done f) To create healthy competition between competitors to increase the business market size g) To make profit quality product in orders increase customer loyalty by 3 to 4 of market share h) To take the opportunities that depending on the ability and business objectives in order to increase income

32

The Process that involve In The Marketing

I. To determine the objectives of customer and the suppliers that been chosen for main intentions in the market activities II. To implement the marketing planning exactly like the plan. We can use multiple ways to complete this work. III. To analyze the opportunities concern to needs and desire of the customers parallel to the marketing concept that insisted the customers satisfactions IV. Experiment and observed the market to determine the logistic income. These are include the market size, competitors influence, market flow and the surrounding of the market V. To create goods target that suited to the market that been selected in which this target were combination of strategy the price, market and production VI. To come out with strong, ambitious and realistic business objectives as the guidelines in order to survives the business .VII. To come out with a good marketing strategy to achieve the marketing objectives

33

PRODUCT & SERVICES

In our business, we want to achieve our mission that is to offer the quality product and services that being offered to the customer especially our regular customer. The purpose of our business is not only to fulfill the product quality as a main factor. When the product is at satisfying level then the business will expand. "Lovely Blossom Sdn Bhd" is a company that runs a business based on flowers and arrangement of the flowers. We are supply and get the flowers from Chinatown and Cameron Highlands. We are focusing the business in Malaysia especially main area of Shah Alam. Besides that, we also provide a service including fresh flowers for all occasions and functions, artificial and dried flowers. We also have a tender and contracts for offices, hotels in Shah Alam area such as Concorde Hotel. Uitm Hotel and others and restaurants.

34

TARGET MARKET
Target market is a group of customers who have higher request where it must fulfill by a business via the product offered. In this business plan that our company have done, a survey about the marketing target, it conclude survey in demographic and psychographics. hi choosing the suitable location for our business, we make some survey to find out the area, which has a highest rate of consumer. These customers are choose based on business ability to satisfy customers need and want. Our target market is the community in Shah Alam which consist of: Student college Workers & Offices Personal & Family Hotels & Resorts

Our main office, located at PKNS, Shah Alam. Our main targets are hotels & resorts in Shah Alam. We expect 40% of our market is coming from this community. Besides that's, we also focus our market to, offices, student college and personal and family.

35

MARKET SIZE
In order to manage a "Lovely Blossoms Sdn Bhd", we had makes some survey about our customer which is the community in Shah Alam area. This is because to decide our market size and so that we can makes some comparison with others competitors. Our marketing population on 4 categories: Hotel & Resorts - 40% Workers & Offices - 30% Personal & Family - 15% Student collages - 15 %

We prefer to chooses a community of hotels and resorts as a our main target because there a fewer competitors compared to other places in Shah Alam. Besides that, Shah Alam also have a lot of business especially on hospitality such hotels and resorts. So that we agreed that our market size is come from this community. We also provide a reasonable price for our customers with a good service. For example, we can deliver our flowers to the hotel and resort, so that they do not spend time to pick the flowers arrangements.

36

From the data above, we can obtain the market for our first year of operation. From our own survey for the amount of minimum expenses of the person buy the flower is RM 4.00 per person. So, from here we can calculate the expenses of the customers for a day and a year. Market size = 10/100 X 150000 = 15000 peoples

= RM 4X150000 - RM 60000 RM 60000 X 12 month - 720000

We assumed that from our service for hotels and offices, weddings RM 16600 per month X 12 = 199200

RM 720000 + RM 199200 - R M 2 7 1 2 0 0

37

MARKET SIZE
40%

0.4-

0.35-

0.3-

0.25-

0.2CO

16%

15%

0.15-

0.1

0.05-

hotels & resorts

workers & Offices POPULATION

personal & family

student collages

COMPETITORS
Competitors refer to other businesses that offer similar, substitute or alternative products/services to the same target market. The entrepreneur should analyze the strength and weaknesses of the competitors in terms of size, experience, and years in business, financial ability and product line. In our business, there are a few flower shops that will be our competitors that are operate around our shop From our survey, the\ ha\re their own customers The table show s the competitors of our business 1 2 3 4 Ruby Shapphire Flora & Koleksi \ l e k Su MidoidFloml Hie \Ieo\\ Garden

39

The Advantages & Disadvantages Of The Competitors

Advantages: The companies have started in long period Market have already stabilize Have theirs own customers The quality of theirs product are more familiar to customer Product sell in the shop are more familiar the customers

Disadvantages: The price is too expensive Lack of promotion The productivities are low The shops are too small and crowded Product sold are not properly manage

40

MARKET SHARE
Market share refers to the estimated potential sales of the business after taking into considerations the market size and competitors" influences. Market share is often represented in terms of percentage of potential market sized owned. In our business, BEFORE Number ' !
i i

Mam Competitors Midore Florist Flore & Koleksi Mek Su

Market Share 28% 25 % 22% 25 %

' Monthly Sales Expectation RM 30,000 RM 27,0(30 RM 24.000

i

i 1 1

! !
i
i

3 4.

Ruby Shapphire The Meow Garden

i
l

RM 27,000

! No

Main Competitors

AFTER Monthly Sales Market Share Expectation RM 25,920 RM 23,760 RM 22.680 RM 10,800 RM 24,840

Sale Losses Expectations 4% 3% 1%

|

1. 2.
_*>.
i

Midore Florist Flora & Koleksi Mek Su !

1 !

24% 22%
21%

Ruby Shapphire

| i i

Lovely Blossoms The Meow Garden

10% 23 %

1
2%

41

SALES FORECAST FOR FIRST YEAR

MONTH January February March April May June July August September October November December SALES EXPECTATION RM 16,400 RM 28,600 RM 24,000 RM 22,500 RM 27,200 RM 20,000 RM 18,000 RM 19,500 RM 14,200 RM 16,000 RM 30,000 RM 34,800

TOTAL = RM 271,200

42

SALES FORECAST FOR THE SECOND AND THIRD YEAR

We have expected that our sales will increase about 10% for year 2 (2007) and 20% for year 3 (2008) YEAR 2007 2008 SALES FORECAST (RM) 298,320 325,440

43

MARKETING STRATEGY
In order to achieve our sales forecast, we try to develop appropriate marketing strategies to generate sales from our target market. So that we .can concentrate on 4P's, which are product/service, place, promotion and price strategies. All items are very important in order to ensure that the sales can be effectively.

a) Product Strategy To ensure that our business success, we provide the best quality to our customers We also guarantee that our products are attractive which beautiful arrangements of the flowers are. From our survey, we found that people usually bought flowers for many purposes such as occasions like Birthday, Valentine, New Year, and Weeding & Anniversary Ceremony So, we assumed that our sales increase during festive season like Hari Raya and Chinese New Year. Furthermore, we also take a tender for the hotels such as Concorde Hotel, Quality Hotel, Intekma Resort & Convention Centre. IT -tel UiTM and restaurants and offices usage everyday

44

b) Place Strategy Our business is strategically located at G31, Ground Floor, PKNS Complex, 40450 Shah Alam which is main area of Shah Alam. Besides that, it is easy for our customers to find our shop- because our location in shopping complex.

c) Price Strategy The paces that we offer are very reasonable Flm is because nur paces are cheaper than other flower shop "We give a discount price tor our regu'ai customers, hotels and offices. We also provide member car J. f\'them Because rf v"e buy in a large amount, we get a trade and purchase discount form the dealer.

45

d) Promotion Strategy We have to do a lot of promotion in order to notify to all people about the existence of our company. We expect that the sales will generate on our target market and ^o that we will achieve our sales forecast We use effective promotion channel such as signboard, flyers, posters, business card and i others The promotion aetiutv is done twice in a vear The reason is to tell the customer the existence of our shop and to do maintain our sales Besides that, we will make ->ure that our customer get a best service form our w orkers

46

PROMOTION STRATEGY
In order to notify to all community in Shah Alam area about the existence of our company, we use a few alternative to promote our product and services. The strategies we are using are: a) Signboard It is located in front of our premise. It shows the name, address, logo and the product and services of our business b) Flyers

We also distribute fixers to public to attract hotels, resorts, student colleges, \\ orkers and offices. The flyers contains all information about our business e) Posters We stick the posters at the bus stations, supermarkets and also at the college area d) Business Card We use business card to deal with other suppliers and our customers. It contains all information related to our business.

47

MARKETING BUDGET
ITEMS ASSET EXPENSES Business Sign Promotion Transport Business Card RM1000 MONTHLY EXPENSES OTHER EXPENSES
-

RM800 RM150 RM 150

TOTAL = RM 2100

48

MARKETING BUDGET (YEARLY)

ITEMS Business Sign Promotion Transport Business Card FIRST YEAR (RM) RM1000 RM800 RM150 RM 150 ' SECOND YEAR (RM) RMO RM800 RM200 RM 0 THIRD YEAR (RM)
-

RM800 RM 250 RM-

TOTAL

RM 2100

RM 1000

RM 1050

Transportation: The budget for transportation increased at 15u start from second year to third year This budget include oil A'ehicle. cost transportation like tolls, road tax etc. Promotion: At the first vear the promotion cost its fixed, but the second year and third year this cost is increased at around 15o We estimated that the second and third year, the promotion is not very important Sign Board: We consider this item is fixed asset for our flower shop to grow up

49

INTRODUCTION TO OPERATION
Operation is a process, which involves various kinds of activities that's is being run in a long period. Every process is related to each other starting from raw materials to the outputs. Quality service is the most important thing, which should be considered to achieve our objective and vision to the company. As the operation manager, I am responsible to make sure the operation is run smoothly in all area. I also responsible to check the supplies of the materials for the whole month and for the whole year. At the same time we make sure that our customer are satisfied with our services. In general, our company provides services sales of fresh flower to our entire customer in Shah Alam. We also provide the delivery service for the customers whom make an order, which the flower arrangement is needed. The flowers are selling for any special occasion, Valentines Day, Mother's Day, business purpose and others.

50

OPERATION PROCESS
Buy the flowers from the suppliers at the Chinatown

The flowers is send to Ihe shop and store in (he chiller

Send the flowers to the hotels, resort or office

Business operation start

fl
The worker at the counter will get the information from the customer about the flower types, color, quantity that are needed The worker will give the flower to the customer if they want to buy on that time. If there is a delivery service, information about the customer and the recipient will be taken

JO. . ,

The worker will ask for the payment from the customer

After receive the payment, the worker will give the receipt to the customer

51

FLOW CHART PROCESS

O
Buy the flowers

I'
Send the flower

Send to the hotel

Business operation start

The worker gets the information

Give the flower

o o^ o
I
52

Ask for payment

RAW MATERIALS REQUIREMENT

Fresh Flowers
NAMES QUANTITY PRICE PER UNIT(RM) TOTAL AMOUNT PURCHASED (RM) 1080 360 840 480 120 120 90 864 PRICE SALE PER UNIT (RM) 3.50 2.50 9.00 6.50 1.50 1.50 0.80 9.00 ,
j

Roses Carnations Sunflowers Tiger Lilies White Peacock Yellow Peacock Pom-Pom Stargazer / Casablanca Gerbera Orchid

720 360 120 96 120 120 180 108

1.50 1.00 7.00 5.00 1.00 1.00 0.50 8.00

168 144

2.00 5 00

336 720 j

2 50

7 00

|
i

TOTAL

5010

53

Dry Flowers NAMES Dry Flower Class A (Big) Class B (Medium) Class C (Small) Bunga Telur Class A Class B Class C Cossage _ClassA_ Class B Clasb C TOTAL QUANTITY PRICE PER UNIT(RM) 7.50 6.00 5.00 TOTAL AMOUNT PURCHASED (RM) 112.50 90.00 75.00

15 15 15

30 30 30
. 1. -

2 00 100 0 60
. . . . . . . . . I -

60.00 30 00 18 00
. !

30 ^0 30~

15_0_ "l 20 ()50

45 00 100 15 00

481.00

Total of raw material purchase per month RIM 5491.50

Other Materials ITEMS Plastic Vase Basket Sponge Wishing Card Wrapper and Ribbon Floral Shear & Scissor PRICE (RM) 125 120 45 _
150 68

!
! j

TOTAL

538

54

Estimation Cost of Raw Materials For the First Year (2006)

MONTH January February March April May June Jury August September October November December

TOTAL COST (RM) 5491.50 5791.50 5691.50 5591.50 5700.00 5710.00 5230.00 5238.00 5063.13 5073.13 5103.13 5103.13

TOTAL = RM64786.52

55

PLAN LAYOUT OF LOVELY BLOSSOM S.D.N R E D

STORE

MARKETING MANAGER, OFFICE OPERATION MANAGER OFFICE FINANCIAL MANAGER OFFICE ADMINISTRATION MANAGER OFFICE

GENERAL MANAGER OFFICE

MEETING ROOM

CHILLER

FLOWER ARRANGEMENT DISPLAY

56

OPERATION BUDGET
ITEMS Chiller Van Table Van service Insurance and Road Tax Petrol Raw Materials Other Materials j ! 1000 1 I
1

FIXED ASSET (RM) 2700 35000 100

MONTHLY EXPENSES (RM)

OTHER EXPENSES (RM)

300.00 1300.00

5491.50
i

538.00

TOTAL

37800

6491.50

2138.00

58

Yearly Operation Budget For the Second and Third Year

ITEMS Petrol Raw Materials YEAR1 12,000 64,786.52 YEAR 2 13,200 71,265.17 YEAR 3 15,840 85,518.20

> There is an increasing in the cost of petrol and raw materials, which is at 10% for the second year and 20% for the third year.

INTRODUCTION TO FINANCIAL
Before we start our company, we had made a careful planning about financial aspects. This financial prepared after our company prepare in administration, marketing and operation aspects. All factors are relevant or connected to our business and can dominated the movement of companyfinancialwill be search deeply pro and the contra.

Thisfinancialplanning prepared for determined: a) b) c) The amount of cost needs to start the project, Total of source need. Capital structure of our company.

d) Total of loan amortization. c) f) g) Total of hire-purchase repayment. The depreciation of fixed assets. Cash money prepared in our company,

h) Potential of the business run.

60

This financial information plan depends on the input from the budget of administration, marketing and operation that has prepared first. The statement include in thisfinancialplanning are:

a) Project implement cost. b) Source of project fund. c) Loan amortization schedule. d) Table of depreciation. e) Cash flow pro-forma statement. f) Manufactuiing, trading, profit and loss pro-forma statement.

61

PROJECT IMPLEMENTATION COST

RM Capital Expenditure Furniture and fixtures Van Renovation Business sign Computer Table (Operation) Total Workins Canital (1 Month) VJmm'str.tt n Marketing Operating
Tot-j.

RM

2700 35000 10000 1000 4500 100 53300

m'

14533.50 3260 4000

7509 35

Prt -^penitionai Costs Deposits Allowances for

i

1 contingencies (10%)

| i
!

TOTAL i
1

82602.85

62

SOURCE OF FUND

Source Equity Cash: Term Loan Hire Purchase Finance TOTAL

RM

60000 50000 30000 / 140000 )

63

DEPRECIATION ASSETS

Type of Asset Basic Price Economic Duration Depreciation Rate

: Van : RM 35000.00 : 5 years' : 20%

Year

Annually Depreciation (RM)

Total Depreciation (RM)

-

Balance (RM) 35000 28000 210(X) 14000 7000

-

i i

1
i

0 1 2 3 4 5 7000 7000 7000 7000 7000

7000 14000 21000 28000 35000

j | 1
1

|
i

1
1

64

DEPRECIATION ASSETS

Type of Asset Basic Price Economic Duration Depreciation Rate

: Furniture and Fixtures : RM 2700.00 : 5 years : 20%

Year

Annually Depreciation (KM)

Total Depreciation (RM)

-

Balance (RM) 2700 2160 1620 108O 540 , i 1 1

1 1

0 1 2 3 4 5

540 540 540 540 540

540 1080 1620 2160 2700

65

DEPRECIATION ASSETS

Type of Asset Basic Price Economic Duration Depreciation Rate

: Renovation : RM 10000.00 : 5 years : 20%

Year

Annually Depreciation (RM)

Total Depreciation (RM)

-

Balance (RM) 10000 8000 6000 4000 2000

-

0 1 2 3 4 5

2000 2000 2000 2000 2000

2000 4000 6000 8000 10000

66

DEPRECIATION ASSETS

Type of Asset Basic Price Economic Duration Depreciation Rate

: Business Sign : RM 1000.00 : 5 yeans : 20%

Year

Annually Depreciation

| Total Depreciation

Balance (RM) 1000 800 600

(RM)
0 1 2 3 4 5
-

(RM)
-

200 200 200 200 200 !

!

200 400 600 800 1000

1
400 200
i

67

DEPRECIATION ASSETS

Type of Asset Basic Price Economic Duration Depreciation Rate

: Computer : R M 4500.00 5 years : 20%

Year

Annually Depreciation (RM)

Total Depreciation (RM)

Balance (RM)
4500

900 900

900 1800
27O0 3600 4500

5600
2700 1800

3 4 5

900 900 900

900
-

68

DEPRECIATION ASSETS

Type of Asset Basic Price Economic Duration Depreciation Rate

: Table (Operation) : RM 100.00 5 years : 20%

j
i

Year

Annually Depreciation (RM)

Total Depreciation (RM)

i
i

Balance

(RM)
100
80
fio
i

;
!

-i

I
2 3

20

20
1

2o
20
i

40
6a

40
1 20.
i
1

4
1

2o
:
i

80
1

20

100
1

69

LOAN AMORTIZATION SCHEDULE

Loan Amount Loan Period Interest Rate Method

: R M 50000 00 : 5 years : 1 4% : Reducing Balf

Year

Interest (RM)
i

Principal (RM) 10000 10000 10000 10000 10000

Payment (RM) 1070(0 10560 10420 10280 10140

Balance (RM) 50000 40000 30000 20000

i

0 1 2 3 4 5

. 700 560 420 280 140

i
i

j 1 , 1

1000O
f

70

HIRE PURCHASE REPAYMENT SCHEDULE

Asset Cost of Asset Down Payment Loan Amount Loan Period Interest Method : Van : RM 35000.00 : RM 5000.00 : RM 30000.00 : 5 years : 8% : Flat (annually)

Year

Interest (RM)

Principal (R]VI)

Payment (RM)

Balance (RM) 30000 ""

6000 2400 ~240CT ~ 240n~~ 2400 6000 6000 6(X)0 6000

847)0 8400 ~ ~847J0 8400 8400

~24000 ~
"TROOO"

6000

71

PROFIT AND LOSS ACCOUNT FOR VL YEAR (31 DEC 2006)

RM SALES LESS EXPENSES Administration Marketing Operation Financial 1 Interest on term loan
I

RM 271200

96504 2100 77898

i

700
2400

2. Interest on hire-purchase
Depreciation charges Pre-Operation Expenditure Total Expenditure PROFIT

10660 "3260
. .

-193522 77678 1 -27149.84 50528.16

TAX (28%) NET PROFIT

72

PROFIT AND LOSS ACCOUNT FOR 2ND YEAR (31 DEC 2007)

RM SALES LESS EXPENSES Administration Marketing ()peration Financial ! 1 Interest on term loan 2 Interest ^n hire-purchase Total Expenditure PROFIT TAX (28%) NET PROFIT

RM

298320

91224
i

1000 80301.60

560
2400

-175485.60 122834 40 -34393.60 88440.80

73

PROFIT A N D LOSS A C C O U N T FOR 3RD Y E A R (31 D E C 2008)

RM SALES LESS EXPENSES Administration "Marketing rOpe^n^n" Financial 1 Interest on term loan 2 Interest on hire-purchase 1 " Total Expenditure PROFIT TAX (28%) NET PROFIT
I

RM

325440

! " '
;

93146.40 1050 89292

; [ ' j 420 2400 ; -186308.40

;

139131.60_
1

-38956.80 100174.80

74

BALANCE SHEET AS AT 31 DECEMBER 2006

RM Fixed Assets a) Van b) Furniture & Fixtures c) Renovation d) Business Sign e) Computer f) Table (Operation) Current Assets a) Cash b) Deposit TOTAL ASSETS 95628.16 4000 99628.16 152928.16 35000 2700 10000 1000 4500 100 53300 RM

Equity
a) Cash b) Net Profit Liabilities a) Term Loan b) Hire Purchase TOTAL EQUITY AND LIABILITY 40000 2400 42400 152928.16 60000.00 50528.16 110528.16

75

BALANCE SHEET AS AT 31 DECEMBER 2007

RM Fixed Assets a) Van b) Furniture & Fixtures c) Renovation d) Business Sign e) Computer Current Assets a) Cash b) Deposit TOTAL ASSETS Equity a) Cash b) Net Profit Liabilities a) Term Loan b) Hire Purchase TOTAL EQUITY AISD LIABILITY 60000 88440.80
-

RM

0.00 0.00 0.00 0.00 0.00 0.00

192360.80 4080 196440.80

148440.80

30000 18000 48000.00 196440.80

76

BALANCE SHEET AS AT 31 DECEMBER 2008

RM Fixed Assets a) Van b) Furniture 8c Fixtures c) Renovation d) Business Sign e) Computer Current Assets a) Cash b) Deposit TOTAL ASSETS 134094.80 4080 138174.80 0.00 0.00 0.00 0.00 0.00 0.00 RM

Equity
a) Cash b) Net Profit Liabilities
-

60000 100174.80 106174.80

a) Term Loan b) Hire Purchase TOTAL EQUITY AND LIABILITY

20000 12000 32000 138174.80

77

Cash-flow Pro-forma Statement Per month

Month A. CASH INFLOWS Beginning cash balance Equity Cash TermTx>an Cash Sales B. Total Cash Inflows C. CASH OUTFLOWS a) Administration Expenditure Salary EPF SOCSO Electricity & Water Rent Building Telephone Bill b) Operation Expenditure Raw Material Petrol c) Financial Expenditure Loan Repayment Principal Interest Hire Purchase Payment Down Payment Principal Interest d) Capital Expenditure Business Sign Chiller Table (Operation) Van Computer Furniture and Fixtures Renovation e) Other Expenditure Promotion Business Card Petrol (Marketing) Van Service Insurance Other Material (Operation) f)Deposit g)Pre-Operation D. Total Cash Outflows . Cash Surplus/Deficit F. Ending Cash Balance

Pre-Operation 0 60000 50000 110000

JANUARY 39102

FEBRUARY 32618.34

16400 55502

28600 61218.34

5300 636 106 300 1500 200 5491.5 1000

5300 636 106 300 1500 200 5791.5 1000

833.33 833.33 5000 500 200 1000 2700 100 35000 4500 2700 10000 800 150 150 300 700 538 4000 3260 70898 39102 7839102

833.33 833.33

500 200

~ -

16900.16 32618.34 32618.34

17200.16 44018.18 44018.18

IARCH 44018.18

APRIL 50918.12

MAY 56418

JUNE 66509.3

JULY 69390.6

AUGUST 67751.98

SEPTEMBER 66605.32

24000 22500 68018.18 73418.12

27200 83618

20000 86509.3

18000 84390.6

19500 83251.98

14200 80805.32

5300 636 106 300 1500 200 5691.5 1000

5300 636 106 300 1500 200 5591.5 1000

5300 636 106 300 1500 200 5700 1000

5300 636 106 300 1500 200 5710 1000

5300 636 106 300 1500 200 5230 1000

5300 636 106 300 1500 200 5238 1000

5300 636 106 300 1500 200 5063.13 1000

833.33 833.33

833.33 833.33

833.33 833.33

833.33 833.33

833.33 833.33

833.33 833.33

833.33 833.33

500 200

500 200

500 200

500 200

500 200

500 200

500 200

17100.16 50918.02 50918.02

17000.16 17108.66 17118.66 16638.66 56417.96 66509.3 69390.64 67751 98 56417.96 66509.3 69390.64 67751.98 19

16646.66 66605.32 66605.32

16471.79 64333.53 64333.53

OCTOBER 64333.53

NOVEMBER 63851.74

DECEMBER 77339.95

YEAR1 0 6000 50000

16000 80333.53

30000 93851.74

34800 112139.95

271200 327200

5300 636 106 300 1500 200 5073.13 1000

5300 636 106 300 1500 200 5103.13 1000

5300 636 106 300 1500 200 5103.13 1000

63600 7632 1272 10800 18000 2400 64786.52 12000

833.33 833.33

833.33 833.33

833.33 833.33

9999.96 9999.96 5000 6000 2400 1000 2700 100 35000

500 200

500 200

500 200

"

4500 2700 10000 800 150 150 300 700 538 4000 3260

16481.79 63851.74 63851.74

16511.79 77339.95 77339.95

16511.79 95628.16 95628.16

279738.44 95628.16 95628.16

YEAR1 A. CASH I N F L O W S Beginning cash balance Rquity Cash Term Loan Cash Sales B. Total Cash Inflows C. CASH O U T F L O W S a) Administration Expenditure Salary EPF SOCSO Electricity & Water Rent Building Telephone Bill b) Operation Expenditure Raw Material Petrol c) Financial Expenditure Loan Repayment Principal Interest Hire Purchase Payment Down Payment Principal Interest d) Capital Expenditure Business Sign Chiller Table (Operation) Van Computer Furniture and Fixtures Renovation e) Other Expenditure Promotion Business Card Petrol (Marketing) Van Service Insurance Other Material (Operation) f)Deposit g)Pre-Operation D. Total Cash Outflows E. Cash Surplus/Deficit F. Ending Cash Balance 0 60000 50000 271200 327200

YEAR 2 95628.16 0 0 298320 393948.16

YEAR 3 196455.99

325440 521895.99

63600 7632 1272 10800 18000 2400 64786.52 12000

63600 7632 1217 11880 18000 2400 71265.17 13200

63600 7632 1217 14256 18000 2400 77743.82 14400

10000 700 5000 6000 2400 1000 2700 100 35000 4500 2700 10000 800 150 150 300 700 538 4000 3260 279788.44 95628.16 95628.16

10000 560 0 6000 2400 0 0 0 0 0 0 0 800 0 200 300 700 538 0 0 210692.17 183255.99 196455.99

10000 420 0 6000 2400 0 0 0 0 0 0 0 800 0 250 300 700 538 0 0 220656.82 301239.17 301239.17

Cash-flow Pro-forma Statement For First Year, Second Year and Third Year

SUMMARY
Business plan have widened our knowledge and open our eyes to the world of business. Before mis, we assume mat making business is as simple as ABC, but our expectation is totally false. As we have to go through a hard way in completion of his

business plan report. However, we found that doing this is something fascinating and interesting to do. During the hard day preparing busmess plan, we learn many things especially teamwork. We learn the value of giving and taking, patience and the important thing is we have built stronger relationship. Based on the observation we made, LOVELY BLOSSOM SDN BHD can make a profitable business. Within the strategic location, in the heart of human activities, we though this might be the strategic 3pot for customer around and the place to choose us as their special place to get beautiful and enchanting flower.

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