BUSINESS PLAN

Course : Technopreneurship
Course Code : MPU3232
Semester : July 2017
Date of Submission : Oct-Nov 2017

You are required to work in 5-6 of team members and

set-up a company in any kind of business nature. The
idea of the business must be originally come from you
and have to prepare business proposal that serves as a
guideline for you in managing your daily business
operations. Please refer to the checklist given.
 i) Cover page
Title of business plan
Name of company
Address of company
Name of the writers and ID no
Date of submission
ii) Cover letter
 iii) Table of contents
Main headings
Tables (numbering accordingly)
Schedules (numbering accordingly)
Appendices (numbering accordingly)
Page number
 1.0 Executive Summary
Product or service
Market potential
Project management
Project cost (Project implementation cost)
Expected return (Refer to your Proforma
income statement)
 2.0 Introduction
 Name of company
Mafabellma is the combination of the partner name of this business that
reflects feminity in our services. As for the word “Beauté”, it brings the
meaning of beauty in French.

 Nature of business (manufacturing/trading/service)

We are providing mobile beauty service where we will personally go to
customer’s house to serve them with the kind of service they desire. Ladies services
that we provide are including facial, manicure and pedicure, waxing and also nails art.

 Industry profile
Health and beauty industry is getting wider and famous among other
business industries. Mafabellma is one of the business under this wide
spread industry. Health and beauty is the industry that involved the activity
of taking care of beauty in terms of physical and emotional. This industry is
including fitness, hair care, skin care and body care. In Malaysia, department
stores under health and beauty industry remained a major distribution
channel for beauty and personal care products in 2012, mainly due to strong
shares from premium fragrances and skin care products.
 Location of the company
We are located at 88, LorongMaarof, Taman Bangsar 59000 KualaLumpur.
We choose to start our business in Bangsar area because that is an elite area
and most of our target market is among the people with high living
standard.
 Date of company commencement
We are expecting to start our operation in May 2014.

 Factors in selecting the proposed business

We choose this business because we can see the opportunity to
gain profit by providing services that is different compared to the
existing business in health and beauty industry. The services
provided are easy to access since we are attending the customers
by their doorstep. Also it will be easy for the busy working
women to reach our services as we provide a fast and efficient
beauty services to them that have a packed schedule to pamper
themselves.
Future prospects of the business
As people get much busier, we will keep on providing efficient
services to meet their desire. As we earn much more profit
throughout the year, we will add more services such as hair-
cut, threading, produce our own product line that will be more
affordable than the existing products and maybe achieving the
target of becoming a one stop centre not just in Bangsar but
Kuala Lumpur in a whole.
 3.0 Purpose/Objective
Examples:
a. This business plan is prepared by Syarikat Fair One
Sdn. Bhd. to obtain a term loan for the amount of
RM50,000 from SME Bank.

b. This business plan is prepared by Syarikat Fair One

Sdn. Bhd. as a guideline in managing the business.

*must be stated clearly, precisely and concisely*

 4.0 Company background
 Name of the business
 Business address
 Correspondence address (website/email address/blog)
 Telephone number
 Form of business (partnership/private limited company)
 Main activity
 Date of commencement of business
 Date of business registration
 Business registration number
 Name of bank
 Bank account number
 Equity contribution
Name of the Company : LAUNDRY KITA ENTERPRISE
Business Address : 88, Lorong Maarof, Taman Bangsar
59000 Kuala Lumpur.
Correspondence Address : laundrykita.com.my
Telephone Number : +603 – 20972084
Form of Business : Partnership
Main Activity : Providing laundering services
Date of commencement : In progress
Date of Registration : In progress
Registration Number : In progress
Name of the Bank : In progress
Bank account number : In progress
Equity contribution : Partners Contribution: RM100,000:-
1. Ainul Mardiah Razali RM20,000
2. Amallea Muhammad RM20,000
3. Irdina Mustafa RM20,000
4. Danish Iskandar Ahmad RM20,000
5. Darwish Iskandar Ahmad RM20,000
 5.0 Owners/Partners background
 Name of partners
 Identity card number
 Permanent address
 Correspondence address (website/email address/blog)
 Telephone number
 Date of birth
 Age
 Marital status
 Academic qualification (name of qualification (s), university/college, year of graduation)
 Courses attended (name of the course (s), agencies, year of attended)
 Skills
 Experiences (working experience – state position, name of the company, working
period)
 Current job/position (state position, name of the company, working period)
 Other/Previous business experiences (state the type of business you involved with. If
any)
6.0 Location of the business
 Physical location and its advantages
Our premise is located at 88, Lorong Maarof, Taman Bangsar 59000
Kuala Lumpur. This premise act as the place of goods to be use
in Caravan and also to park our Caravan

 Building
Our Business premises located in the middle of Bangsar town. The
purpose of open premise in there is because of the accessibility
for us to deliver our services as the town is near to the residential
area. Plus, it also almost near to most of our suppliers. It is a
beneficial for us to have less spend due to less transportation cost.

 Basic amenities available

Our location also near to variety of facilities such shopping mall
(Bangsar Village), Children care Center, schools and restaurants.
This could be an advantages for the workers to use the facilities
related to their family and personally.
 7.0 Administrative/Organization Plan
 Business vision
 Business mission
 Business objectives
 Organizational structure (flat/tall/matrix)
 Manpower/Personnel planning:
-List of staff position and number
-Schedule of tasks and responsibilities
-Schedule of remuneration
 List of office equipment
 Organizational budget (fixed asset expenses, monthly
expenses, other expenses)
 Business Vision
Example:

to position Mafabellma Beaute as a premier choice

for health and beauty industry, and to serve as an
efficient and fast mobile ladies service within 5 years.
 Business Mission
Example

continually improving though ongoing

education and experience, with a willingness
to learn by an all associates.
 Business objective
Example

To educate the public of the many health and

beauty benefits derived from our service.
 Organisation Chart

Manager

Administrative Marketing Operations

Finance Officer
Officer Officer Officer
 List of Administration Personnel

Position No. of Personnel

Manager 1
Administrative Officer 1
Marketing Officer 1
Operations Officer 1
Finance Officer 1
 Schedule of Tasks and Responsibilities

Position Tasks and Responsibilities

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
Administrative officer
 Schedule of Remuneration for Administrative
Staff

Position No. Monthly EPF SOCSO Amount

Salary Contribution (2%) (RM)
(RM) (12%) (RM)
(RM)

Manager 1 2500 300 42.85 2842.85

Administrative 1 1200 144 20.15 1364.15

Officer

Marketing 1 1200 144 20.15 1364.15

Officer
 Schedule of Remuneration for Administrative
Staff

Position No. Monthly EPF SOCSO Amount

Salary Contribution (2%) (RM)
(RM) (12%) (RM)
(RM)

Manager 1 2500 300 42.85 2842.85

Administrative 1 1200 144 20.15 1364.15

Officer

Marketing 1 1200 144 20.15 1364.15

Officer
 List of Office Equipment

Item Quantity Price/Unit Total Cost

(RM) (RM)
Office 2 sets 2000 4000
Furniture
Personal 2 sets 3000 6000
Computer
Air-Cond 1 set 2500 2500
 Administration Budget

Fixed Assets Monthly Other Expenses

Expenses Expenses (RM)
(RM) (RM)
Building xxxxx
Furniture & Fittings xxxxx
Renovation xxxxx
Rental* xxx
Utilities : water, xxx
electricity, telephone
Salary xxx
EPF & SOCSO xxx
Rental Deposit xxx
Utilities Deposit xxx
Stationery xxx
Business Registration xxx
 8.0 Marketing Plan
 Marketing objective(s)
 Product or service description
 Target market
 Market size
 Competition
 Market share
 Sales forecast
 Marketing strategy
-Product
-Price
-Place
-Promotion
 Marketing personnel:
-List of staff position and number
-Schedule of tasks and responsibilities
-Schedule of remuneration (remuneration, compensation)
 Marketing budget (fixed asset expenses, monthly expenses, other expenses)
 8.1 Marketing objective(s)
1. To introduce new service in the market
MAFABELLMA BEAUTE is a new and only business that involved in
mobile beauty servicing and our service is different than the other
existing beauty business. It is because the word mobile shows we serve
our customer by coming to them instead of them coming to us. This
services will offer the sense of comfort, relaxation and easy to be
accessed by the customer.

2. To estimate market acceptance and sales

By starting our own business in beauty and health industry, we are able to gain
feedback from our customers and the potential of gaining profit through this
kind of business service. Through the feedback we could see the performance of
our beauty services b and the acceptance by our target market in order to be
competitive with our competitors in beauty and health industry. This is because
we are targeting to be one of the well-known company in beauty and health
industry.
 8.2 Product or Service Description
MAFABELLMA BEAUTE provides mobile services for ladies. Our services are just the
same as what offered by the existing business in the beauty and health industry, but
what makes it different is that we personally go to their place and fulfill their desires.
As people get busier, they have no time to pamper themselves. Therefore, in order to
keep they maintain their beauty care in their busy life, we will always be ready to
serve them.

Our services are ………………………………………………………………………………….

MAFABELLMA BEAUTE offers some good packages to our customers at affordable

prices. The packages are:
• Package A – Manicure + Pedicure
• Package B – Pedicure + Waxing (Legs)
• Package C – Manicure + Facial
• Package D – Full Body Waxing
The purpose we promoting these packages is to
encourage our customers to purchase more than one
service. The price per service is more cheaper by
purchasing the package compared to purchase with no
package.

*Describe clearly the product or service offered. Relate the proposed product/ service to target
customer needs and wants.*
 8.3 Target Market
Segmentation Variables Details
Geographic Residency We choose Bangsar area as
our starting target market
because this area is where
most of people with high
income and high living
standard live in. Also it is
one of the busiest business
centre in Klang Valley.

Demographic Age We only serve in the range

of age 18 to 60 for facial
service because of the
distribution of income and
the effect itself to the skin
condition.
Segmentation Variables Details
Demographic Gender Our service is specially
offered to women because
our workers are mostly
women. We do serves men
but only for certain
services such as manicure
and pedicure.

Psychographic Personal taste Women tend to look good

in front of people as they
grow older and becoming
an adult so they will always
take care of their physical
appearance.
 8.4 Market size
Our target market in our operating business is around
Bangsar, Kuala Lumpur especially in the residential area. The
service is accountable for women aged from 18-60 years. The
total population is 80 000 people. We estimated to own 5% of
target population. Each of them will pay averagely at RM 150
from the service given.

• Total population in Bangsar: 80 000 people

• Total target population: 5% x 80 000= 4 000 people
• Total market size per month: RM 150 x 4 000= RM 600 000
• Total market size per year : RM 600 000 x 12= RM 7 200 000
After consideration
After we predicted the factor of seasonal festive
and nature circumstances, the sales has been
estimated to inclined to RM 6 500 000.
 8.5 Competition

• List at least three main competitors that exist

in the same market area. State their
strengths and weaknesses.

Competitors refer to other businesses that

offer similar, substitute or alternative
products/ services to the same target
market.
 Competition

• Example: (elaborate more)

Competitors Strength Weakness

Co. A •Product •Lack of skill

lines workers
•Years in
business
Co. B •Wide •Poor customer
product service
assortment
 8.6 Market share
• Compute the market share as a percentage of
the market size. Product or service
information, customer needs and wants as
well as market competition must be taken
into consideration.
Market share refers to the estimated
potential sales of the business after taking
into consideration the market size and
competitors’ influences.
 8.6.1 Market Share before entry of
MAFABELLMA BEAUTE
• Example:

Competitors Market share Sales per year

FACES Hair & Beauty 50% RM3,250 000

Saloon
Holistic Aesthetics 30% RM 1 950 000

Nail & Faces 20% RM 1,300 000

Total 100% RM 6 500 000

8.6.1 Market share before entry
Market share

FACES Hair & Beauty

Holistics Aesthetics
Nail & Faces
 8.6.1 Market Share after entry of
MAFABELLMA BEAUTE
• Example:

Competitors Market share Sales per year

FACES Hair & Beauty 48% RM3,120 000

Saloon
Holistic Aesthetics 29% RM1, 885 000

Nail & Faces 17% RM1,105 000

MAFABELLMA 6% RM 390 000

BEAUTE
Total 100% RM 6 500 000
8.6.2 Market share after entry of
MAFABELLMA BEAUTE
Market share

FACES Hair & Beauty

Holistics Aesthetics
Nail & Faces
MAFABELLMA BEAUTE
 8.7 Sales Forecast

• Definition: expected purchases from the

identified target market.
• It is quoted in units or in Ringgit for a
period of a year or a month
 Sales Forecast
Month Sales (RM)
January 29,000
February 32,000
March 32,000
April 30,000
May 33,000
June 33,000
July 33,000
August 33,000
September 33,000
October 35,000
November 33,000
December 34,000
TOTAL YEAR 1 390,000
TOTAL YEAR 2 ( 5% increasing) 409,500
TOTAL YEAR 3 (8% increasing) 442,260
• Please justify your answer from the sales
forecast table
• eg: why do you think your business able to
gain xxx sales in a first month and explain the
trends for the following month (decrease or
increase sales)
• Factors such as festive seasons, economical
conditions could be some factors that affect
your sales figures)
 8.8 Marketing strategy
• Discuss the strategies concerning the following
marketing mix:
– Product or Service
– Price
– Place or Distribution
– Promotion
 8.8.1 Product
• Brand
• Product/service
differentiation/uniqueness/positioning
strategy/positioning map
 8.8.2 Pricing strategy
• Cost-based pricing
– Mark-up pricing
– Break-even price

• Objective pricing strategy

-penetration/skimming/value-
based/psychological/price discounting
 8.8.3 Place (Distribution)
• Types of distribution channel:
-Direct channel
-Indirect channel (wholesaler, agent, retailers)
• Market coverage intensity:
- Intensive
- Selective
- Exclusive
 8.8.4 Promotion
• Advertising, Sales Promotion, Personal Selling, Public
Relations

Eg: Bunting
MAFABELLMA BEAUTE used bunting as one of our promotion
strategies to approach our target market. The bunting is 2ft
x 6ft in size consist of our brand name, phone number and
services that we provided. The total cost of 20 pieces of
buntings is RM 1500. The design of the bunting has the
touch of tranquility, quality and beauty so people could
understand what are we going to deliver to them. The
bunting will be placed around Bangsar area especially in
residential area.
 Promotion
• Eg; Outdoor Media (caravan)
Since we are using caravan, we see it is a strategic way to print our
logo and and brand name on each of the caravans. The total price
of van printing is RM 1000. We wanted our customer to recognize
us anywhere and anytime as they see our logo and brand name on
the caravans.
• Business card
Business card is another way to keep the customer stay interacted
with us. In the business card includes the company’s name, website,
contact number, e-mail address, and office address plus the service
been at the back of the business card. The cost for 500 pieces of
business cards is RM 300.
 Promotion
• Eg; Websites
• This is another promotion strategy for the customers to keep update with
our new promotion, packages,and contact information plus they could
send any of their suggestion and recommendation about our services or
any inquiries regarding the services provided. The website address is
www.mafabellmaotw.com.my
 8.9 Marketing Personnel
8.9.1 List of marketing personnel
8.9.2 Schedule of tasks and responsibilities
8.9.3 Schedule of remuneration

*Use the same format as in admin plan

 8.10 Marketing Budget

Fixed Assets Monthly Other

Expenses Expenses Expenses
(RM) (RM) (RM)
Van xxx
Pamphlets and xxx
brochures
Commission xxx
Salary, EPF & xxx
SOCSO
Petrol xxx
Road tax and xxx
insurance
 9.0 Operation Plan
 Process planning
 Operations layout
 Production planning
 Material planning
 Machines and equipment planning
 Manpower planning:
- List of staff position and number
- Schedule of tasks and responsibilities
- Schedule of remuneration (remuneration, compensation)
 Overhead requirement
 Location
 Business and operations hours
 License, permits and regulations required
 Operations budget (fixed asset expenses, monthly expenses, other expenses)
 Implementation schedule
 9.1 Process Planning
Figure 3.1 Activity Chart for Hand Waxing Service

Heat the roles on wax machines for 30 minutes

Start roll-on the wax machines onto skin

Place cloth strip over wax on the hands and allow wax to cool

Once the wax is cooled, pull off the wax strip quickly in the opposite
directions of the hair growth on the hands

Once the hair is removed, apply lotion to the hands gently to avoid
discomfort
Figure 3.2 Flow Chart for Hands Waxing Services
Heat the roll-on wax machines

for 30 minutes

Start roll-on the wax machines onto the skin

Place cloth strip over wax on the hands

Allow wax to cool for a minutes

Once the wax is cooled, pull off the wax strip quickly in the opposite directions of
the hair growth on the hands

Once the hair is removed, apply lotions to hands gently to avoid discomfort
9.2 Operations layout
 9.3 Material Planning
9.3.1 Direct Materials

Materials Quantity Price p/unit Total (RM) Supplier

(RM)
Easy wax 3 (500 ml) 33 99 Reckitt Benckiser
electric roll-on (Malaysia) SdnBhd,
machines Menara UAC, No 12,
Fabric straps 1 box (100) 32 32 Jalan PJU 7/5,
MutiaraDamansara,
47800 Selangor
DarulEhsan.

Nail polish 2 bottles 10 20 Nail fiesta,

remover (100 ml) (Inside skin pharmacy)
Cotton packs 5 packs 2 10 16, Jalan USJ 4/1,
(100) Subang Jaya 47600 Kuala
Lumpur
Nail polish 7 bottles 33 231
(15ml)
Clear topcoat 1 bottle 33 33
(15 ml)
Exfoliating 1 bottle (150g) 165 165 Dermalogica
Scrub discounts
Malaysia,
Mask 1 bottle (75 ml) 164 164
Bangsar 40400
Kuala Lumpur
Toner 1 bottle 145 145
(240 ml)
Moisturizer 1 bottle 210 210
(100 ml)
Eye cream 2 bottle 164 328
(15 ml)
Anti-aging 1 bottle 195 195
treatment (75 ml)
TOTAL RM2302
 9.3.2 Indirect Materials

Materials Quantity Price p/unit Total (RM) Supplier

(RM)
Finish wipes 1 bottle (60 ml) 5 5 Giant TMC
Nail 1 bottle 10 10 LorongAraKiri
moisturizer (100 ml) Satu,27
LorongAraKiriS
Base coat 1 bottle (15 ml) 33 33 atu, Lucky
Towel 5 pieces 2 10 Garden, 59100
Cucumber slice 3 kg 2 6 Bangsar, Kuala
Lumpur

Total RM64
 9.3.3 Bill of materials
Waxing cost per unit
Ingredients Amount required for Amount (RM)
p/service
Easy was electronic roll-on 25 ml 16.50
machines
Fabric strips 5 sheets 1.60
Finish wipes 5 mililitres 0.42
Easy wax electronic roll-on 1 pieces 34
Total 52.52

Table 8.3.3 Cost of waxing

Cost of waxing per service are RM52.52

 Manicure and pedicure cost per unit
Ingredients Amount required for Amount (RM)
p/service
Nail polish remover 10 ml 0.04
Nail polish 2 sheets 2.20
Clear topcoat 1 ml 2.20
Nail moisturizer 1 ml 0.10
Base coat 1 ml 2.20
Nail clipper 1 piece 5
Emery Board 1 piece 5
Nail buffer 1 piece 5
Cuticle pusher 1 piece 5
Nippers 1 piece 5
TOTAL 31.74

Cost of manicure and pedicure per service = RM31.74

 9.4 Production Planning
• The sales forecast is 100 customers served per month,
monthly production demand is 100 customers.
Working days per month is 26 days, the daily
production rate is:
100
26 days = 4 customers per day
• The effective working hours per day is 7 hours i.e. after
deducting one hour of rest period and idling time, the
hourly production rate is:
4
7 hours = 0.6 customer per hour
• Waxing service and the usage of Roll-on waxing
machine:
1 machine can wax 1 customer in 2 hours,
the reciprocal of this is:
The machine’s capacity to wax per hour.=
0.5 customer per hour
• Therefore, the number of machine required is:
= production capacity required per hour /
waxing machine’s capacity per hour
= 0.6 / 0.5
= 1.2 (i.e. the business needs 2 waxing
machines)
• Facial service and the usage of face steam
machine:
1 machine can serve 1 customer in 15
minutes, the reciprocal of this is:
The machine’s capacity to steam per hour
= 4 customer per hour
• Therefore, the number of machine required is:
= production capacity required per hour /
waxing machine’s capacity per hour
= 0.6 / 4
= 0.15 (i.e. the business needs 1 face steam
machine)
 9.5 Machines and Equipment Planning
9.5.1 Direct Machines and Equipments
Materials Quantity Price p/unit Total (RM) Supplier
(RM)
Easy wax 2 sets 30 60 Reckitt
electric Roll-on Benckiser
(Malaysia)
SdnBhd,
Menara UAC,
No 12, Jalan
PJU 7/5,
MutiaraDaman
sara, 47800
Selangor
DarulEhsan.
Nail clipper 2 sets 5 10 Nail fiesta,
Emery board 2 sets 5 10 (Inside skin
pharmacy) 16,
Nail buffer 2 sets 5 10 Jalan USJ 4/1,
Cuticle pusher 2 sets 5 10 Subang Jaya
Nippers 2 sets 5 10 47600 Kuala
Lumpur

Face steam 2 sets 60 120 Smart Care (GE

machine Technology Co.
Limited), China
(mainland)
Guangdong.

TOTAL 230

Table 8.5.1 Direct Machines and Equipments

 9.5.2 Indirect Machines and Equipments

Materials Quantity Price p/unit Total (RM) Supplier

(RM)
Blackhead 2 pieces 5 10 Giant TMC
extractor LorongAraKiri
Satu,27
LorongAraKiriS
atu, Lucky
Garden, 59100
Bangsar, Kuala
Lumpur

TOTAL RM10

Table 8.5.2 Indirect Machines and Equipments

 9.6 Manpower Planning
• Required time to complete each of the service:
120 minutes + 30 minutes + 30 minutes + 90
minutes = 270 minutes
• Working capacity:
= 270 minutes (7hours x 60 minutes)
= 270 minutes / 420 minutes
= 0.6 service per hour
• Hourly production rate:
= Daily production rate / working hours per
day
= 4 customers per day / 7 hours
= 0.6 customers per hour
• Numbers of workers required:
= Hourly production rate / Hourly working
capacity
= 0.6 customers per hour / 0.6 service per hour
= 1 worker

Workers that should be hired are 3 as for taking charge for

other services. One worker would act as the manager and
the beauty therapist where she would in charge in waxing
services.

The second worker would in charge for manicure and

pedicure and the third worker would responsible for facial
service.
9.6.1 List of operation personnel
9.6.2 Schedule of tasks and responsibilities
9.6.3 Schedule of remuneration

*Use the same format as in admin plan

 9.7 Overhead requirement
Items Quantity Price p/unit Total Amount Supplier
(RM) (RM)
Fire 1 170 170 Abode Solution
extinguisher Sdn. Bhd
No 2 Jalan
Pantai Timur
Tower 3,
Bangsar Baru
59100, Kuala
Lumpur.
Vacuum 1 400 400 PANASONIC
Lot 2, Jalan
Maarof, Bukit
Bandaraya
Bangsar,
59000, Kuala
Lumpur.
TOTAL RM570
 9.8 Location
It is crucial for MAFABELLMA BEAUTE to choose the right location for our
business because a strategic location can contribute to the success of
MAFABELLMA BEAUTE. MAFABELLMA BEAUTE has chosen Bangsar as our
location. The choice of this location is based on these following factors:

• Distance from customers

• Distance from sources of materials
• Availability of manpower

 Please justify your answer.

9.9 Business and operation hours
9.10 License, permits and regulations required
• Companies Commission of Malaysia (CCM)-
partnership/sole proprietorship, Form A
• Local Authority Party (PBT)
• Fire Department
 9.11 Operations Budget

Items Fixed Assets Monthly Assets Other Expenses

(RM) (RM) (RM)
Caravan 350,000
Machines and
Equipment:

Direct 230
Indirect 10
Raw materials
Direct 2032
Indirect 64
Overhead requirement 570
Salary 7328
Business registration 60
Insurance 10,000

Maintenance on 350
caravan

TOTAL 350,230 10,044 10,640

 9.12 Implementation Schedule

Activities Deadlines Duration

Incorporation of Business April-June 2013 1 Month

Application of permits and June-July 2013 1 Month

license
Searching for business July-September 2013 2 Months
premises

Procurement of vehicles October 2013 2 Months

Procurement of machines January-February 2014 1 Month

and raw material

Recruitment of labors March 2014 1 Month

Financial Plan
 The Importance of A Financial Plan

• To determine the amount of money to be

invested – the project cost.
• To identify and propose the relevant sources
of fund.
• To ensure that the initial capital is sufficient.
• To appraise the viability before actual
investment is committed.
• As a guideline for implementation.
 Sources of Financial Information

Financial information is gathered through budgets.

• Operational budget
– Administrative budget
– Marketing budget
– Production budget
• Financial budget
– Project implementation cost
– Sources of fund
– Projected cash flow statements
– Projected profit & loss statements
– Projected balance sheet statements
Steps in Preparing a Financial Plan
• Step 1:
– Prepare the project implementation cost schedule.
• Step 2:
– Prepare the sources of fund to finance the project
cost.
• Step 3:
– Prepare the projected cash-flow statements.
• Step 4:
– Prepare projected trading, profit & loss statements
(for 3 years).
 Project Implementation Cost
• Project implementation cost refers to the total costs (short &
long-term costs) needed to implement the proposed
business/project.

– Long-term costs refer to capital expenditure

required to buy fixed assets (ex. land, building,
machinery, equipment, furniture and vehicle).

– Short-term costs refer to expenditure to finance

day-to-day operation of the business (ex. raw
materials/inventory, wages & salaries, utilities and
other overheads.
 Elements in Project Cost Schedule
• Capital Expenditure
– Land
– Building
– Renovation
– Machinery & Equipment
– Furniture & Fixtures
– Vehicle
• Working Capital ( _xx month)
– Administrative
– Marketing
– Operation
 Elements in Project Cost Schedule
• Pre-operational costs
– Business registration & licenses
– Legal fees
– Road tax & insurance
– Stamp duties etc.
• Deposits
– Rental
– Utilities
• Provision for contingencies
– (2 to 5 percent)
Example: Project Implementation Cost
Schedule
RM RM

Capital Expenditure
Building 45,000
Machinery & Equipment 23,000
Furniture & Fixtures 7,000
Van 25,000
Renovation 4,000
104,000
Working Capital (1 month)
Administrative 8,000
Marketing 1,500
Operation 8,000
17,500
Pre-operational costs 2,700
Deposits 800
Allowance for contingencies (10%) 12,500

Total cost 137,500

Exercise: Project Implementation Cost
Schedule for Gegak Gempita
RM RM
Capital Expenditure
Equipment 100
100
Working Capital (1 day)
Administrative 10
Marketing 5
Operation 160
175
Preoperational Cost 160
Deposits Rental 10 170

Grand Total 445

Allowance for contingencies (5%) 22.25

Total cost 467.25