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29047941 secret-recipe-business-plan

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  • 1. ABDM 5234 Entrepreneurship Skills KOLEJ TUNKU ABDUL RAHMAN ABDM 5234 ENTREPRENEURSHIP SKILLS No. Student Name Registration Number 1 Chan Chi Yee 08WBA12624 2 Lian Ye Chen 08WBA12418 3 Lim Swee Ling 08WBA10687 4 Ng Kim Toh 08WBA11482 5 Tee Yang Wei 08WBA12303Academic Year: 2009/10Course/Year: Advanced Diploma in Business Studies (Accounting)/ 2AACTutorial Class: Group 7Lecturer: MR. LIM CHIN HOCKTutor: MR. JAMES TEODate of Submission: 10 AUGUST 2009 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 2. ABDM 5234 Entrepreneurship SkillsContents PageExecutive Summary 1Company Description 2Franchisor Description 2-3Objectives and Missions 4-5Industry and Market Analysis 6-9Marketing Plan 10-15Management Structure 16-17Operational Plan 18-21Implementation Plan 22-27Financial Plan 28Critical Risk Factors 29Conclusion 30Appendix 31-40Bibliographies 41-42 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 3. ABDM 5234 Entrepreneurship SkillsExecutive SummaryThe purpose of this business plan is to secure a long term funding to open a Secret Recipe Caféfranchise in Perak. The 5 owners in company are investing Rm 30,000 each person and total upto Rm 150,000 in total. The long term loan we are seeking is in the amount of Rm 300,000, andif approved it will be amortized to 10 years.We will be forming a private limited company, Infinity Private Limited Company to get thefranchisee license from Secret Recipe Cakes & Café Sdn Bhd and open our franchise shop as thefirst shop in Perak state. Our café will be strategically located at Unit 829, Jalan Batu Karang,Taman Bandar Baru Kampar, 31900, Kampar, Perak it is refer as “new town’ in Kampar District.Secret Recipe Café is a lifestyle concept café chain that features a modern and metropolitansetting that has more than 150 outlets throughout Malaysia and Asia. It is one of the fastestgrowing café chain in Asia. Our mission is to give the best satisfaction to our valued customer.Secret Recipe café offers a wide choice of more than 40 different type of cake and fusion food. Itis one of the best place to dine in with friends and family.As in our industry analysis report, the trend is moving toward dining out from home nowadays.People tend to enjoy life and more concern about the quality of life, thus they are more likely todine in more classy and trendy café and not just have their meals at restaurant which does notserve good quality food. The business we are going into is visible and viable as we offer bestquality food and best service at a reasonable price.Despite the competitiveness from our competitor, with our promoting strategy and the brandname of Secret Recipe, we are positive to attain the market share we estimated. Our managementteam was build with 5 shareholders with qualification and knowledge in Accounting. 1 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 4. ABDM 5234 Entrepreneurship SkillsCompany DescriptionInfinity Private Limited is formed through a partnership of 5 fresh graduates from Tunku AbdulRahman College. We are planning to get a franchisee license from Secret Recipe Cakes & CaféSdn Bhd to setup a Secret Recipe franchise lifestyle café at Unit 829, Jalan Batu Karang, TamanBandar Baru Kampar, 31900, Kampar,Perak. Our café will be a single unit, medium-sized singlestory café serving large variety of tasty cakes and a fusion of tasty foodsCompany Ownership5 partners will jointly hold the company at 20% shares each. Profits are to be distributed equallyamong the 5 partners.Franchisor’s DescriptionSecret Recipe is a lifestyle café chain established since year 1997 by Yang Bahagia Dato’ StevenSim. He had successfully transformed a small business into a market leader within a short periodof time. Secret Recipe has established a firm presence in Asia, including Malaysia, Singapore,Philippines, Indonesia, Thailand and Pakistan. A large variety of cakes and fusion of foods areserved under the brand name of Secret Recipe.The company has registered double digit growth for the past 5 years. In a period of seven years,Secret Recipe has expanded by over 100 cafes throughout the region. Defying the statistics of aneconomic crisis, Secret Recipe continues to register annual growth of 30% for the past threeyears, while profits saw a 300% increase in year 2002.Secret Recipe has won numerous awards across the region for its authentic food recipes and finequality cakes including: • “Best Cheesecake Award” • “Most Original Chocolate Award” • “Best Lamb Stew Award” • “Malaysia’s Best Local Restaurant Chain” • “Indonesian’s Best Restaurant Award” 2 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 5. ABDM 5234 Entrepreneurship Skills • “Singapore’s Excellent Food Award”• “Best Brand Food & Beverage Café – The Brand Laureate Asia Pacific”• “Best Restaurant Award – Philippines Talter”• “Best Casual Dining Restaurant of the Year – Hospitality Asia Platinum Awards” Secret Recipe offers customers a warm and friendly ambience in a trend setting environment. In line with Secret Recipe’s lifestyle café concept, the cafe features the theme of fresh and simplicity chic interior. The interior also presents an interlude of vibrant splashes of dramatic colours with plush sofas and arty seats that liven up the ambience and adding on to the cosmopolitan characteristics of the cafe. Patrons can look forward to a pleasant dining experience in a modern in-trend set up. The café concept certainly provides a conducive location for birthday and celebration parties, private functions or business lunch functions. 3 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 6. ABDM 5234 Entrepreneurship SkillsVisionOur vision is to ride on the success of Secret Recipe brand and engrave a good brand impressionin the hearts of Kampar population. We strive to adhere to strict self regulation and control onthe food and service standards and quality that we provide to customers.Mission StatementAt Infinity Private Limited, we believe that our accomplishment is driven by our philosophy ofpracticing quality and high standards is the most important brand value for Secret Recipe. Westrive to provide the best satisfaction to our valued customers.We will continue to provide friendly, personalized service beyond customer’s expectation andserve premium quality products. We adhere strictly to Secret Recipe’s core values:QUALITY – is everything we do. Quality is more than a word we use to describe our food andservice. It is a philosophy that everything we do. It is always the result of high standards, sincereeffort and skillful execution. Our commitment to quality distinguishes us apart from ourcompetitors.DEDICATION- we are dedicated to maximize the level of performance and productivity in allareas of or business. To drive success of our company, we must set aggressive goals, focus onresults and an obligation to earn a profit in order to remain in the business and growth. We mustnot jeopardize our future for short-term gain. We will balance our need for current earnings withour desire for consistent long-term profitability.CONCEPT – a differentiated and proven concept with broad consumer appeal. This uniquepositioning and strong brand image remain part of our strongest competitive advantage.SERVICE – we believe quality, friendly and personalized services sets us apart from ourcompetitors. It is an effort we put in building positive customer relationship, transcend ingenuity,hard work and passion for service excellence. 4 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 7. ABDM 5234 Entrepreneurship SkillsRESULT ORIENTED – managing performance within the company and through customerfeedback is very important to gauge the growth of the company. We continuously measure ourperformance and set targets by benchmarking to stay competitive and to move ahead for growth.ObjectivesInfinity Private Limited’s main objective is to achieve a break-even point within the first year ofcommencing operating of business. During the first year period, marketing plan will beimplemented to tap into Kampar’s market share and achieve a 10% market penetration.For the following years, we will continue to achieve positive percentage growth that can help ourcafé to grow steadily and remain dominant in the market segment that we are strong in. 5 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 8. ABDM 5234 Entrepreneurship SkillsIndustry BackgroundStatistics Malaysia shows that the Gross Domestic Product for the year 2008 has an averagegrowth of 4.73% for the whole year. However, it is at a 6.2% contraction for the first quarter ofyear 2009. Consumer Price Index shows a 7.2% increase in price of foods for the period ofJanuary to June 2009 as compared to year 2008.Despite the contraction of economy nationwide, our researches lead us to a different opinion onlifestyle trends in Malaysia. Consumers are more than willing to dine outside due to lack of timeto cook at home as a result of doing overtimes in work. Purchasing power for outside food hasgreatly increase over the years because people find that the time is much wiser to be spend ondoing more work to get increases in wages.Another trend that we see is a growing demand for better dining environment among familyhouseholds. Family households demand more from eateries, including good quality foods,services and dining environment.As one of the fastest growing franchise in the food service industry, we are right on track to tapinto the market in Kampar and woe customers to enjoy a good lifestyle dining experience atSecret Recipe.Market AnalysisAnalysis of Business EnvironmentKampar district of 920sq km have a growing population of 93,000 residents to date and a yearlyrevenue of RM 12million.Our targeted market are the “new town” in Kampar district, BandarBaru Kampar where it had rapidly developed over the years.. More than 5,000 houses and shopswere build in this town and hub of education such as major university and college were set uphere. Furthermore, the biggest hotel in Kampar is already in operation here. It would attractmany tourists as it is located in center of many attractions such as Gua Tempurung, BatuBerangkai Waterfall and white water rafting. Our market consists of students and lecturers from 6 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 9. ABDM 5234 Entrepreneurship SkillsTunku Abdul Rahman University and Tunku Abdul Rahman College, white collar workers,residents and also tourists.Market sizeIn Bandar Baru Kampar there will be more than 18,000 residents residing that town. Many ofthese household are from middle income family earning RM2,000-3,000 with high purchasingpower. The hub of education also draws a population of more than 9,000 students’ age between18-24 with high purchasing power and going after trendy and classy lifestyle. The biggest hotelin Kampar which located just 1 km from our shop, The Grand Kampar Hotel attracts more than3,000 tourists annually because of it strategic location. Lastly, we targeted the1,200 white collarworker who works in the town to consume in our café.Should we be able to attract 10% of the population to order a slice of cake per month and10% ofthe population to order a cake per year, we are able to sell 6,240 cakes year the year 2009 to thatmarket alone. On top of that, should there be a meal being bought for 2 slices of cake sold, weare able to sell 37,440 meals for the year 2009. Resident Students and Lecturers Tourists White collar workerDemographic ChangesThe trend of demographic in our targeted area is set to be increased at a high rate with morestudents coming to Kampar to pursue education in newly launched University Tunku AbdulRahman as the university completes its transition from old campus to the newly built campus.This leads to increase in population aged 18 to 24 with high purchasing power. The demographic 7 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 10. ABDM 5234 Entrepreneurship Skillsof family households has now been largely diluted with a lot of college students. Collegestudents tend to eat out more often than doing the cooking themselves.Attitude of the community towards our businessThere is a high demand for a lifestyle dining concept among college students and average familyhousehold. This particular category of consumer is willing to pay premium in return for betterenvironment to dine in, good service and quality foods. Consumer reports in the targeted areaconcludes that consumers would rather eat out with friends and families to save time on cooking,while still able to utilize the extra time saved with friends and families. Thus, they demandquality service and environment when dining out.Analysis of the CompetitionOur competition consists of a few food café located nearby our location. The competition will bequite fierce as it offer food at lower price compares to our. But however our lifestyle café will setus apart from the competition as we focus on best quality food and cake, cozy lifestyle ambiancedining concept and therefore we emphasize on providing only the best dining experience to ourcustomers.Golden Sand CafeGolden Sand café is our main competitor. It is located at the shop lots opposite to our store atroughly 200 meter distance. It serves a variety of western food which includes steaks with rice,spaghetti, and soups. Their main target is the students from university and college, thus theiraverage price per meal is set within the range of RM9-12.Yum Yum CafeYum Yum Café is located at the corner of the same shop lots as our café. They serve mostlyChinese food such as noodle and rice which comes with a dish. Their meals price was set quitelow as to attract customer, within the range of RM 7-10. But however, the review from customerfor food has not been very good. 8 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 11. ABDM 5234 Entrepreneurship SkillsBig A KopitiamBig A Kopitiam is a local restaurant which serves local delicacies from all over Malaysia. It islocated quite a distance from our shop, almost 2 km. Hence, they targeted market are thosedowntown workers and late nighters as their shop operates till 2am. 9 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 12. ABDM 5234 Entrepreneurship SkillsMarketing PlanProductSecret Recipe is well known in Malaysia for its fine quality cakes, fusion food and distinctiveservice. Our well-guarded homemade recipes have become favorites for both old and young. Weare serving a wide selection of more than 40 types of gourmet quality cake and other bakeddesserts. Other than that we also offer savory foods such as local delicacies and fusion food. Itincludes Secret Recipe award winning Lamb-Stew and other favorite’s dish of all time, BlackPepper Chicken, Kebab and Pasta.We offer more than 40 types of different cheesecake, chocolate cake, and brownies. Other thanthat, we also offer seasonal cakes using seasonal ingredient in Malaysia such as Durian Cake,Durian Cheesecake and Hazel Cheesecake. Health Cake was introduced to the market as themarket trend shift to healthier lifestyle. Sugar free and trans-free cake such as Sugar Free MoistChocolate Cake and Hi-fiber Cream Cheese was put on shelf and gets good review from thecustomers.Secret Recipe do have the service of baking cake in shape of different character of Disneycartoon based on the preference of customer’s choice of flavor . Customer can choose thecartoon character pose from our album and choose up to 3 different flavors depending on howbig the cake they want. This cake reservation must be made 3 days in advance.Our menu includes a few sections, which are:Vegetarian: Its offers choice of salads and Japanese soba for those who vegetarian or those whowish to have a fresh bowl of salad as appetizer.Soup: Secret Recipe does have well-guarded recipes of soups such as mushroom soup, pumpkinsoup and carrot and ginger soup. 10 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 13. ABDM 5234 Entrepreneurship SkillsChicken: This section serves chicken in a variety of dish such as Chicken Steak Burger WithFries, Grilled Chicken (Black Pepper, Mushroom, BBQ) Chicken Kebab and many moredelicious dish with chicken.Pasta: We offer spaghetti with recipe all over the world no matter in western or Asia, such asSpaghetti Bolognese and Tom Yam spaghetti. It is popular food in our menu.Asian Classic: This section provides the best food selected from all over Asia.Fish and Lamb: The Lamb Stew has been awarded ‘Best Lamb Stew Award”, it had becomes asignature dish in Secret Recipe. Western foods are also served such as Fish And Chips.Kids club: Secret Recipe Café had been also considering kids favorites dish and so gather it inmenu too. It comes in a smaller portion and smaller bite to ease the kids in dining.Pies: It offers best pies recipe and created to engage the taste buds of customer.Brownies: Brownies are offer in Secret Recipe Café with a variety choice. It is suitable for bothyoung and old and in comes in a fine texture of taste and quality.Secret Recipe Café also serves a variety choice of drinks that includes Coffee, Organic tea,Milkshake, Yoghurt shake, Fruit Juice, Ice Blended, Iced tea and also hot drinks.DistributionWe distribute our products directly to our customer, which is through retail shop. Secret Recipealso offers cake delivery if customers make booking of minimum 2 cakes through our website,www.secretrecipe.com.my. The delivery will be made in 5 km radius from our shop. 11 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 14. ABDM 5234 Entrepreneurship SkillsPromotionAs we are the franchise of Secret Recipe Café, the advertising on the franchise business as awhole will be place by the induct company in major newspaper. At the grand opening of ourbranch, we will hold an opening party. Free food such as our signature cheesecake and drinksfrom menu will be served. By this method we can gain publicity and build our brand name intown. The grand opening of the branch in Kampar will be put up in website of Secret RecipeCafé as free advertising. Besides that we will also put up banner at the lamp post along the mainroad into the town to bring up the awareness of residents in town of the opening of our café.Apart from that we will place advertisement of the opening of our shop in local daily newspaper.This is an effective ways of spreading the words among the local to let them aware of the brandnew café existence.Upon opening of our shop, we will distribute flyers at both the Tunku Abdul Rahman Universityand Tunku Abdul Rahman College and to the white collar workers. Then we make a sponsorshipfor an event in Tunku Abdul Rahman University to build our brand name and to introduce it tothe students and lecturers.As to attract the tourist, we will meet the management of The Grand Kampar Hotel to discuss onplacing our brochure on the front desk as information to the tourist who accommodate there.Secret Recipe Café also offer Birthday Promotion for the birthday girl/boy with the condition ofpurchasing a whole cake and the birthday girl/ boy will be given a complimentary meal and drink.The second promotion is RM15 per meal which comes with a drink; the customer can choose themeal and drink from the given set menu. 12 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 15. ABDM 5234 Entrepreneurship SkillsPlaceWe have chosen a strategic location facing a new plaza which will be built not far in future. Thislocation is located in the center of the town where it’s surrounded by the Tunku Abdul RahmanUniversity, Tunku Abdul Rahman College, more than 5000 houses and shop lots. Aftersurveying a few potential shop lots, we have decided to rent Unit 829, Taman Bandar BaruKampar, 31900, Kampar, Perak.The property is about 2056 square feet and the height is about 4 meters. The rental of the premiseis Rm 2,000 per month. The premise will be renovated according to the design of layoutprovided by the main franchisor of Secret Recipe Cakes & Café Sdn Bhd as to customize all thebranch.The location was selected because the population in the town alone is 18,000 residents and thestudents from both the university and college make up to 9,000. Furthermore the biggest hotel inKampar district was located about 400 meters away from our shop, the hotel attracts more than3,000 tourist per year. This new town in Kampar will have a steady growth of population as thehub of education was build here and the business center of Kampar are shifting into here as well.The shop was located at the front row of shop lots and can be easily seen from the main roadfrom Kampar old town. The main road is the road accessible to university, college and also thehotel. It may draw many attention and gets free publicity.There are many parking lots available at the front of our shop and within our café area. It is veryconvenient for customer to find parking. 13 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 16. ABDM 5234 Entrepreneurship SkillsPricingOur product prices are set by Secret Recipe and we adhere to the price strategies set by SecretRecipe. Secret Recipe uses a price lining strategy on certain categories of products. This is tosimplify the choices of the customers by introducing same pricing for foods of the same type.Secret Recipe’s markup of 250% to arrive at menu price is at the industry average level range.This is to cover up the overheads generated to operate the business. Retail prices will becompetitive at about $15 for the average meal which is about 30% above our competitor’s prices.However customers are simply willing to pay more for healthier, tasty food served in a clean,comfortable and pleasant environment.Our pricing objective is to be as reasonable as possible for the average household income whodemands a good dining experience, therefore the cap limit for which the average target marketwould be willing to pay for a meal is slightly above the normal pricing. This applies to the alacarte meals only.We have another set if pricing policies for our cakes which is different from the ala carte meals.Tapping into the idea and trend of people craving for Secret Recipe’s cakes, we are able tointroduce our cakes at a standard RM6.30 per slice of cake and a standard RM70.00 per cake.Customers are just willing to go for our quality cakes because of our brand in cake makingindustry which had won us lots of awards.Nevertheless, for cakes that requires custom designs, shapes, decorations, a premium will becharged because of the usage of more than 1 recipes and the additional work on the cake.Customized cakes with 1 recipe will have a markup of 250% of its cost, 2 recipes will have amarkup of 600% on cost and 3 recipes will have a markup of 800% on cost. The premiums arepaid for the amount of recipes used in the cake making process. 14 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 17. ABDM 5234 Entrepreneurship SkillsWe will exercise product bundling by introducing set meals to customers who come to dineduring peak hours, which is lunch hour and dinner hour. The objective of setting productbundling pricing is to maximize table turnovers during the peak period and boosting sales. Bypackaging a main course meal with a soup of choice and a drink, we are able to introduce setpacks at a much lower markup margin. Riding on the idea that white collar classes people andcollege students who are in a rush to have their lunch, it would be effective that we get a lowermargin but able to maximize the table turnovers in order to maximize our sales during peakhours.Labor costs are based on monthly basis where staffs will be paid at the end of the month. Besidesthis, bonus will be given at the start of every year. Bonuses are given to employee based onperformance of the company for the year.Raw materials prices that we obtained are discounted prices 10% below market price as set in anagreement by Secret Recipe franchisor with suppliers. This is the bang for the buck spot as thecost and thus, leaving us with more space for our margins. 15 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 18. ABDM 5234 Entrepreneurship SkillsManagement StructureOur management team consist of five(5) partners which will be Chan Chi Yee, Lian Ye Chen,Lim Swee Ling, Ng Kim Toh, Tee Yang Wei. We segregate the duties to among five partners.Our aim is to motivate our managers to take a personal stake in the success of company, and forthe reason each managers will be shared any profit that has been generated.The sharing profit ratio will be 20% for each partner.Marketing and Sales ManagerThis position will be assigned to Chan Chi Yee. He will responsible for daily sales, advertising,promotional plan and budgeting plan.Financial ManagerTee Yang Wei will be appointed as financial manager as he has the qualification as anaccountant. Therefore, he is capable of handling this responsibility. He will responsible foraccounting reporting and tax computation.Purchasing ManagerNg Kim Toh will take the responsibility of this position. She is responsible for keep contact withour master suppliers list in order to ensure the supplier will deliver the raw material on times andin good condition.Administration and Human Resource ManagerThis position will be appointed to Lian Ye Chen. She will responsible for all the administrationworks. In addition, she also responsible to contact with Secret Recipe franchisor for fresh recruiton-site training, set up and implement staff policy and accounting payroll. 16 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 19. ABDM 5234 Entrepreneurship SkillsSupervisorLim Swee Ling will take over this responsibility. She is responsible for evaluate staffperformance, prepare staff daily schedule, monitor the daily operation and perform cash countingat the end of each operating day. 17 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 20. ABDM 5234 Entrepreneurship SkillsOperational PlanLocationIt must be at the good strategic location. Therefore, the location that we have chose will belocated at Taman Bandar Baru Selatan Kampar which is a surrounding by housing area, highlyvisible, high stream of people as it is near to the University of Tunku Abdul Rahman and CollegeTunku Abdul Rahman. The floor area is about 2,056 square feet. The rental per month will beRM2,000 which is considered reasonable. The shop will be renovated as the design of layout thatprovided by Secret Recipe franchisor.Operation HoursOur daily operation hours for Sunday to Thursday will be 10am to 10pm. For Friday andSaturday our operation hours will be from 10am to 12am to accommodate the longer peak periodduring dinner, because more family households choose to dine up outside during this time.Besides that, our staff will be required to come in 1 hour in advance in order to any necessarypreparation.OperationIn order to keep efficiency for daily operation, we will hire two chefs, one will be the main chefand another one will be responsible for pastry plus we also hire an assistance chef to provideassistance for the two main chefs. Besides that, four full-time staff will also be recruited and alsoone part time staff that will fill in the job whenever one of our full-time staff is on leave. We willalso assign two shifts for our staff which is 1 day shift and night shift. Furthermore, the order andpayment by customers will be fully computerized, in order to ensure the effectiveness andefficiency of our operation to minimize error.SupplierWe will purchase our raw material from the suppliers which provided by the Secret Recipefranchisor because it is more reliable and quality control by headquarter. Furthermore, purchasethe raw material through the suppliers list given by Secret Recipe franchisor will be given us alower price which the price is quoted at below 10% of the market price. We also given the 18 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 21. ABDM 5234 Entrepreneurship Skillsbenefit of 30 days credit term for procurement of raw material, this allows to loosen up our cashoutflow.EquipmentThe suppliers of equipment, furniture, kitchen ware, auxiliary, toiletries and cutleries will beprovided by the Secret Recipe franchisor as to customize to their policy of shop layout concept.TrainingSecret Recipe franchisor will be provided on-site training for the chef, pastry chef and alsowaitress. The chef must undergo 1 month training on how to prepare the dish on menu at KualaLumpur headquarter. The pastry chef must also be trained in Kuala Lumpur on how to preparethe cake and desserts. The objective of training not only to teach on the preparation of food butalso to increase their knowledge and skill. The full time workers will also be train by themanagement in headquarter as how to serve the customers and how to prepare the drinks. 19 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 22. ABDM 5234 Entrepreneurship SkillsDaily Business ScheduleTime Person in charge Job Description9.00am to 10.00am • All the staff who • The staff will be did some work at morning shift cleaning process such as sweep • Chefs and chef and mop the floor, clean the assistance table and etc. • While, the chefs and chef assistance will be prepared for the raw material for the daily usage. • Supervisor will bank in the yesterday cash received to bank account.10.00am to 1.00pm • All staffs include • Waitress will serve the chefs and chef customers, take order, prepare assistance the • Supervisor will manage the cash payment system and serve the customers when it is necessary. • Chefs and chef assistance will start their cooking in order to meet customers’ order.1.00pm to 3.00pm • All staff including • The staff that work for night night shift staff shift will be come in at 1.00pm • Part-timer (if full- and start their work. time staff is on leave) • Morning shift staff will be given one hour for their lunch.3.00pm to 7.00pm • All staff • Continue their job as above. • Night shift staff will be given 1 hour for dinner. 20 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 23. ABDM 5234 Entrepreneurship Skills7.00pm to 9.30pm • All staff • Morning shift staff can be knock off work at 7.00pm • Other staff will still continue their job.9.30 to 10.00pm • All staff • Chef and chef assistance will do the necessary keeping for the raw material, cleaning and throw rubbish • Other staff will clean the table, throw rubbish. • Supervisor will perform the daily cash counting and keep the cash at security box. 21 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 24. ABDM 5234 Entrepreneurship SkillsImplementation PlanTask Implementation Steps Start Duration Completion Date Staff Responsible DateAdministrativeRegistration of business • Filling up forms to Registrar of 1/10/200 90 days 31/12/2009 Administration Company to establish a private 9 Manager limited company • Filing of documents required by Registrar of Company to complete business registration procedureRegistration of franchisee • Filling up forms to Registrar of 1/10/200 90 days 31/12/2009 Administration Franchise to establish as a 9 Manager franchisee • Filing of documents required by Registrar of Franchise to complete franchisee registration procedureLoan application • Application of bank facility for 2/10/200 7 days 9/10/2009 Financial RHB Bank 9 Manager • Seek a loan term loan applicationBusiness operating • Obtain business operating license 8/10/200 60 days 6/12/2009 Administrationlicense with municipal council 9 Manager 22 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 25. ABDM 5234 Entrepreneurship SkillsTask Implementation Steps Start Duration Completion Date Staff Responsible DateLocation agreements • Seek and confirmation of location 12/10/20 7 days 19/10/2009 Administration for business operation 09 Manager & • Confirm and enter into tenancy Financial agreement of business operation Manager locationRenovation and fitting of • Liaise with franchisor’s concept 20/10/20 72 days 31/12/2009 Purchasingfurniture, lightings, designer to design the location into 09 Manager,decorations Secret Recipe’s theme Financial • Get contractors to renovate the Manager & theme designed Administration • Installing of furniture and lightings, Manager decorationsApproval from Ministry • Submission of form to Ministry of 21/10/20 14 days 4/11/2009 Administrationof Health Health for medical checkups of 09 Manager partners • Attend food sanitation classes • Allow health workers to evaluate sanitation compliances at premise • Confirmation of approval 23 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 26. ABDM 5234 Entrepreneurship SkillsTask Implementation Steps Start Duration Completion Date Staff Responsible DateApproval from • Compliance with Environmental 22/10/20 14 days 5/11/2009 AdministrationEnvironmental Protection Protection Act 09 ManagerBureau • Allow officers to determine level of compliance of premise to ensure it is in compliance with Environmental Protection ActTax & Legal • Submission of documents to LHDN 5/11/200 7 days 12/11/2009 FinancialCompliances (Lembaga Hasil Dalam Negeri) for 9 Manager tax compliances of business • Legal, solicit on business legal system compliancesInsurance • Application for premise’s fire 16/11/20 3 days 19/11/2009 Human Resource insurance, employee’s liability 09 Manager, insurance from Kurnia Insurance Supervisor & (Malaysia) Administrative ManagerHuman ResourceRecruitment • Publicity activities to be done to 4/12/200 14 days 18/12/2009 Human Resource 24 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 27. ABDM 5234 Entrepreneurship SkillsTask Implementation Steps Start Duration Completion Date Staff Responsible Date notify public about vacancy to be 9 Manager & filled up Supervisor • Conducting of interviews • Confirmation of staff structureMedical Checkups • Medical checkups for all recruited 19/12/20 3 days 22/12/2009 Human Resource staffs to comply with regulation 09 Manager bodies requirementsTraining • Liaise with franchisor’s staff trainer 15/11/20 1 month 25/12/2009 Human Resource and follow up close with on-site 09 Manager training of staffsMarketing &PromotionAdvertising • Advertise at local daily newspaper 15/12/20 3&1/2 31/3/2009 Marketing and • Put in the date of grand opening 09 months Sales Manager and the grand opening party • After opening, advertise on the set meal promotion.Printing • Design the banner to put up on 1/12/200 25 days 25/12/2009 Marketing and 25 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 28. ABDM 5234 Entrepreneurship SkillsTask Implementation Steps Start Duration Completion Date Staff Responsible Date lamp post along main road 9 Sales Manager • Design flyer to be distributed to students, residents and workers. • Design brochure to be put in the front desk of hotel. • Get into contact with printing supplier and get the best deal • Choose material and confirm the printingSponsorship for Tunku • Meeting with the board of 1/2/2010 1 month 28/2/2010 Marketing andAbdul Rahman Event University. Sales Manager • Discuss on the details of the sponsorship. • Confirm of which event to sponsor.Grand Opening 1/1/2010 26 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 29. ABDM 5234 Entrepreneurship Skills Gantt Chart of Implementation Plan Month Oct Nov Dec Jan Feb MarTask 2009 2009 2009 2010 2010 2010Registration of businessRegistration offranchiseeLoan applicationBusiness operatinglicenseLocation agreementsRenovation and fittingof furniture, lightings,decorationsApproval from Ministryof HealthApproval fromEnvironmentalProtection BureauTax & LegalCompliancesInsuranceRecruitmentMedical CheckupsTrainingAdvertisingGrand Opening 27 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 30. ABDM 5234 Entrepreneurship SkillsFinancial Plan-refer excel 28 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 31. FINANCIAL PLANStartup Costs RMFurniture & Fitting 35,000Renovation 90,000Kitchen Equipment 55,000Total Capital Expenses 180,000Franchise Fee 120,000Franchise Fee - Registration 1,000Franchise Fee - Processing Fee 50Business License 3,480Grand Opening Advertising 80,000Rental (Deposit) 15,000Total Deposit & Prepayments 219,530Startup Costs 399,530Equity RMCapital 150,000Long-term LiabilitiesLong-term loan 300,000Total Equity and Libilities 450,000Calculation of Working CapitalTotal Equity and Liabilities 450,000(-) Startup Costs (399,530)Working Capital 50,470 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 32. Pro Forma Income Statement for Year 1Infinity Private LimitedMonth Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec TotalSales 84,296 85,946 87,629 89,346 91,097 92,883 94,704 96,563 98,458 100,391 102,363 104,374 1,128,049(-)Cost of Good Sold 23,956 24,428 24,909 25,399 25,899 26,410 26,930 27,461 28,003 28,555 29,118 29,693 320,762Gross profit 60,340 61,518 62,720 63,946 65,197 66,473 67,774 69,101 70,455 71,836 73,245 74,681 807,287Gross Profit Margin 72 72 72 72 72 72 72 72 72 72 72 72 72ExpensesDepreciation 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000Maintenance and repairs 400 400 400 400 400 400 400 400 400 400 400 400 4,800Salaries and wages 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 360,000EPF 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 43,200Rent 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000Telephone bill 200 200 200 200 200 200 200 200 200 200 200 200 2,400Interest expense 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 13,500Utilities 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000Accounting fee 800 800 800 800 800 800 800 800 800 800 800 800 9,600Insurance 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000Advertising 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 21,600Royalty fees - 7% 5,901 6,016 6,134 6,254 6,377 6,502 6,629 6,759 6,892 7,027 7,165 7,306 78,963Miscellaneous 200 200 200 200 200 200 200 200 200 200 200 200 2,400Total Expenses 51,026 51,141 51,259 51,379 51,502 51,627 51,754 51,884 52,017 52,152 52,290 52,431 620,463Profit before taxes 9,314 10,377 11,461 12,567 13,695 14,846 16,020 17,217 18,438 19,684 20,954 22,250 186,824Taxes - 25% 2,328 2,594 2,865 3,142 3,424 3,712 4,005 4,304 4,610 4,921 5,239 5,563 46,706Profit After Tax 6,985 7,783 8,596 9,425 10,272 11,135 12,015 12,913 13,829 14,763 15,716 16,688 140,118 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 33. Pro Forma Income Statement for Year 2Infinity Private LimitedQuarter Q1 Q2 Q3 Q4 TotalSales 386,122 402,278 419,242 437,054 1,644,696(-)Cost of Good Sold 106,631 111,247 116,093 121,183 455,153Gross profit 279,491 291,031 303,148 315,871 1,189,543Gross Profit Margin 72 72 72 72 72ExpensesDepreciation 9,000 9,000 9,000 9,000 36,000Maintenance and repairs 1,200 1,200 1,200 1,200 4,800Salaries and wages 90,000 90,000 90,000 90,000 360,000EPF 10,800 10,800 10,800 10,800 43,200Rent 6,000 6,000 6,000 6,000 24,000Telephone bill 600 600 600 600 2,400Interest expense 3,000 3,000 3,000 3,000 12,000Utilities 3,000 3,000 3,000 3,000 12,000Accounting fee 2,400 2,400 2,400 2,400 9,600Insurance 3,000 3,000 3,000 3,000 12,000Advertising 4,860 4,860 4,860 4,860 19,440Royalty fees - 7% 27,029 28,159 29,347 30,594 115,129Miscellaneous 600 600 600 600 2,400Total Expenses 161,489 162,619 163,807 165,054 652,969Profit before taxes 118,003 128,412 139,342 150,818 536,574Taxes - 25% 29,501 32,103 34,835 37,704 134,143Profit After Tax 88,502 96,309 104,506 113,113 402,430 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 34. Pro Forma Income Statement for Year 3Infinity Private LimitedQuarter Q1 Q2 Q3 Q4 TotalSales 455,757 475,395 496,014 517,665 1,944,830Cost of Good Sold 126,526 132,137 138,028 144,214 540,906Gross profit 329,230 343,258 357,986 373,451 1,403,925Gross Profit Margin 72 72 72 72 72ExpensesDepreciation 9,000 9,000 9,000 9,000 36,000Maintenance and repairs 1,200 1,200 1,200 1,200 4,800Salaries and wages 90,000 90,000 90,000 90,000 360,000EPF 10,800 10,800 10,800 10,800 43,200Rent 6,000 6,000 6,000 6,000 24,000Telephone bill 600 600 600 600 2,400Interest expense 2,625 2,625 2,625 2,625 10,500Utilities 3,000 3,000 3,000 3,000 12,000Accounting fee 2,400 2,400 2,400 2,400 9,600Insurance 3,000 3,000 3,000 3,000 12,000Advertising 4,374 4,374 4,374 4,374 17,496Royalty fees - 7% 31,903 33,278 34,721 36,237 136,138Miscellaneous 600 600 600 600 2,400Total Expenses 165,502 166,877 168,320 169,836 670,534Profit before taxes 163,729 176,381 189,666 203,615 733,390Taxes 40,932 44,095 47,416 50,904 183,348Profit After Tax 122,796 132,286 142,249 152,711 550,043 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 35. Pro Forma Cash Flow Statement For Year 1Infinity Private LimitedMonth Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecBeginning Cash Balance 50,470 57,955 66,238 75,334 85,259 96,031 107,666 120,181 133,593 147,922 163,185 179,400Cash Inflows (Income)Cash Sales 84,296 85,946 87,629 89,346 91,097 92,883 94,704 96,563 98,458 100,391 102,363 104,374Available Cash Balance 134,766 143,901 153,867 164,680 176,356 188,914 202,370 216,743 232,051 248,313 265,548 283,775Cash Outflows (Expenses)Salaries and wages 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000EPF 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600Advertising 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800Rent 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000Utilities 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000Telephone bill 200 200 200 200 200 200 200 200 200 200 200 200Insurance 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000Accounting fee 800 800 800 800 800 800 800 800 800 800 800 800Miscellaneous 200 200 200 200 200 200 200 200 200 200 200 200Loan payment 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500Interest payment 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125Taxes 2,328 2,594 2,865 3,142 3,424 3,712 4,005 4,304 4,610 4,921 5,239 5,563Maintenance and repairs 400 400 400 400 400 400 400 400 400 400 400 400Inventory Purchases 23,956 24,428 24,909 25,399 25,899 26,410 26,930 27,461 28,003 28,555 29,118 29,693Royalty fees 5,901 6,016 6,134 6,254 6,377 6,502 6,629 6,759 6,892 7,027 7,165 7,306Total Cash Outflows 76,811 77,663 78,533 79,420 80,325 81,248 82,190 83,150 84,129 85,128 86,147 87,187Ending Cash Balance 57,955 66,238 75,334 85,259 96,031 107,666 120,181 133,593 147,922 163,185 179,400 196,588 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 36. Pro Forma Cash Flow Statement For Year 2Infinity Private LimitedQuarter Q1 Q2 Q3 Q4Beginning Cash Balance 196,588 286,590 384,399 490,405Cash Inflows (Income)Cash Sales 386,122 402,278 419,242 437,054Available Cash Balance 582,710 688,868 803,641 927,459Cash Outflows (Expenses)Salaries and wages 90,000 90,000 90,000 90,000EPF 10,800 10,800 10,800 10,800Advertising 4,860 4,860 4,860 4,860Rent 6,000 6,000 6,000 6,000Utilities 3,000 3,000 3,000 3,000Telephone bill 600 600 600 600Insurance 3,000 3,000 3,000 3,000Accounting fee 2,400 2,400 2,400 2,400Miscellaneous 600 600 600 600Loan payment 7,500 7,500 7,500 7,500Interest payment 3,000 3,000 3,000 3,000Taxes 29,501 32,103 34,835 37,704Inventory Purchases 106,631 111,247 116,093 121,183Maintenance and repairs 1,200 1,200 1,200 1,200Royalty fees 27,029 28,159 29,347 30,594Total Cash Outflows 296,120 304,469 313,236 322,441Ending Cash Balance 286,590 384,399 490,405 605,018 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 37. Pro Forma Cash Flow Statement For Year 3Infinity Private LimitedQuarter Q1 Q2 Q3 Q4Beginning Cash Balance 605,018 729,315 863,100 1,006,850Cash Inflows (Income)Cash Sales 455,757 475,395 496,014 517,665Available Cash Balance 1,060,775 1,204,709 1,359,115 1,524,515Cash Outflows (Expenses)Salaries and wages 90,000 90,000 90,000 90,000EPF 10,800 10,800 10,800 10,800Advertising 4,374 4,374 4,374 4,374Rent 6,000 6,000 6,000 6,000Utilities 3,000 3,000 3,000 3,000Telephone bill 600 600 600 600Insurance 3,000 3,000 3,000 3,000Accounting fee 2,400 2,400 2,400 2,400Miscellaneous 600 600 600 600Loan payment 7,500 7,500 7,500 7,500Interest payment 2,625 2,625 2,625 2,625Taxes 40,932 44,095 47,416 50,904Inventory Purchases 126,526 132,137 138,028 144,214Maintenance and repairs 1,200 1,200 1,200 1,200Royalty fees 31,903 33,278 34,721 36,237Total Cash Outflows 331,460 341,609 352,265 363,454Ending Cash Balance 729,315 863,100 1,006,850 1,161,061 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 38. Pro Forma Balance SheetInfinity Private Limited Opening Balance Year 1 Year 2 Year 3Fixed AssetsFurniture & Fixtures 35,000 28,000 21,000 14,000Kitchen Equipment 55,000 44,000 33,000 22,000Renovations 90,000 72,000 54,000 36,000Total Current Assets 180,000 144,000 108,000 72,000Current AssetsCash and Bank 50,470 196,588 605,018 1,161,061Prepayments 219,530 219,530 219,530 219,530Total Current Assets 270,000 416,118 824,548 1,380,591Total Assets 450,000 560,118 932,548 1,452,591EquityCapital 150,000 150,000 150,000 150,000Retained Earnings - 140,118 402,430 550,043Retained Earnings b/f - - 140,118 542,548Total Equity 150,000 290,118 692,548 1,242,591LiabilitiesLong Term Loan 300,000 270,000 240,000 210,000Total Liabilities 300,000 270,000 240,000 210,000Total Equity and Liabilities 450,000 560,118 932,548 1,452,591 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 39. Break-Even AnalysisBreakeven Value = Total Fixed Cost/ Gross Margin Year 1 Year 2 Year 3Expenses RM RM RMEmployee Salary 360,000 360,000 360,000Advertising 21,600 19,440 17,496Rent 24,000 24,000 24,000Depreciation 36,000 36,000 36,000Utilities 12,000 12,000 12,000Telephone bill 2,400 2,400 2,400Interest expense 13,500 12,000 10,500Insurance 12,000 12,000 12,000Accounting Fee 9,600 9,600 9,600EPF @ 12% 43,200 43,200 43,200Total Fixed Costs 534,300 530,640 527,196Gross Margin 72 72 72Breakeven Value 746,595 733,678 730,315 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 40. APPENDIXEmployment Salary on monthly basis Quantity Salary (RM) Total (RM)Marketing and Sales Manager 1 3,500 3,500Financial Manager 1 3,500 3,500Purchasing Manager 1 3,500 3,500Administration and Human Resource Manager 1 3,500 3,500Supervisor 1 3,500 3,500Main Chef 2 2,250 4,500Assistance Chef 1 1,800 1,800Full Time Staff 4 1,300 5,200Part Time Staff 1 1,000 1,000 13 30,000Sales Forecast (Food & beverages)For first year, sales per month estimated to be increased by 2% every monthFor year 2 and year 3, sales per year estimated to be increased by 5% every quarter Year 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total 82,500 84,150 85,833 87,550 89,301 91,087 92,908 94,767 96,662 98,595 100,567 102,578 1,106,497 Year 1 Year 2 Q1 Q2 Q3 Q4 Year 3 Q1 Q2 Q3 Q4 1,106,497 323,122 339,278 356,242 374,054 392,757 412,395 433,014 454,665Purchase Forecast (Food & beverages)We use mark-up of 250% for the menu pricing, so the cost of purchase should be(Sales/Cost) - 1 = 250%(Sales/Cost) = 3.5Cost = Sales/3.5 Year 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total 23,571 24,043 24,524 25,014 25,514 26,025 26,545 27,076 27,618 28,170 28,733 29,308 316,142 Year 1 Year 2 Q1 Q2 Q3 Q4 Year 3 Q1 Q2 Q3 Q4 316,142 92,321 96,937 101,783 106,873 112,216 117,827 123,718 129,904Sales forecast(cake)We estimated we can sell 1 customised cake for every 30 normal cakes sold RMSo, sales for customised cake every month : (12x83)+(3x120)+(2x220) 1796Purchase forecast(cake)cake (1 recipe) = markup 250%cake (2 recipe) = markup 600%cake (3 recipe) = markup 800% RMSo, cost of cake for everymonth = (12x83/3.5)+(3x120/7)+(2x220/9) 385 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 41. Other Cost Estimation RM RM RM1)DepreciationDepreciation per year at 20%i) Furniture and fitting 7,000ii) Kitchen equipement 11,000iii) Renovation 18,000 36,0002)Maintenance and RepairsMaintenance and Repairs per year 4,8003)RentRental per month 2,0004)Telephone BillTelephone bill per month 2005)Interest Expenses and loan payment Year 1 Year 2 Year 3Long term loan balance 300,000 270,000 240,000(-) loan repayment 30,000 30,000 30,000Interest payment per year 13,500 12,000 10,500Long term loan balance at year end 270,000 240,000 210,0006)UtilitiesUtilities fee per month 1,0007)InsuranceInsurance per year 12,0008)Advertising Year 1 Year 2 Year 3Advertising fees per month 1,800 1,620 1,458Advertising fees decrease 10% per year because our shop will be well known year after year.9)MiscellaneousOthee expenses per month 200 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 42. Critical Risk FactorsStrong CompetitorsLifestyle cafes of similar concepts are mushrooming nationwide due to the high demand of suchdining concepts. However, the trend is beginning to shift from people dining at home towardsdining outside as the time they have after work is getting less, food service industry continues tobe one of the largest industry in Malaysia.Global DiseaseWith the global pandemic outbreak of H1N1 influenza, people are likely to stay indoors ratherand would rather dine at home or order food because of the potential lethality of the virus. Thisdirectly affects our business because of the widespread of the virus. This is inherent for us andwe cannot do anything to reduce this problem.Economic RecessionMalaysia is going through a contraction in economy since the last quarter of year 2008. Thisdirectly indicates that consumers purchasing power has drop and consumers would not spendlavishly. However, signs of economy recovering are beginning to pick up as of the third quarterof year 2009 and its likely to be recovered in early year 2010.Unnoticing, the food service industry is not affected considerably as there are still signs that theindustry is growing at a positive rate with consumers want more of it.SupplierSince our suppliers are fixed by franchisor, it may be a long way journey for the ingredients to bedelivered to our location because of our location at a new area in Kampar. Therefore, thefreshness of our raw materials might be jeopardized. To ensure the quality of our materials are athighest level possible, we would request our suppliers to upgrade their delivery method andpacking method during delivery period to ensure the materials retain their quality. 29 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 43. ConclusionBefore we enter into the food industry in Kampar, we had done sufficient amount of marketresearch and analyzed the business environment to determine the feasibility of venturing into thetarget market. Our analysis shows a positive sign of market trends towards what our businessplan is offering.We had planned our business venture by having marketing plans, operation plan, implementationplans and financial projections.Our marketing plan is written thoroughly by using the “4P’s” rule of thumb to be as concise anddetail as possible. We detailed out all our product mix, selection of location, promotion strategyused and pricing strategies used. By combining our competitive advantage of riding on the goodbrand name value of Secret Recipe, we are able to gain a high markup on cost. Our specialpricing strategy enables us to maximize our table turnover during peak period and thus increaseour sales to the maximum.Our implementation plan allows us to complete all our business operating procedures in time forgrand opening on 1st of January 2010. With this implementation plan, we are right on track tostart operating in 3 months period.Nevertheless, we are prepared for any uncertainties and risks that might hinder our business fromoperating smoothly. We are confident that we will ride through the storm of economic recessionand our risk will be minimized with the strategies that we used.Upon evaluating all the researches and analysis, we are confident that our business will have asteady and promising growth in the short term and a steady profit margin in the long term due tothe strict adherence and believe in the success of Secret Recipe’s brand name. We are of theopinion that our business plan will be a huge success and will win over the hearts of Kamparpeople. 30 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 44. Appendixes:Beverage & Desserts Menu 31 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 45. 32 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NETCHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 46. Secret Recipe Café Food Menu 33 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 47. 34 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NETCHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 48. 35 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NETCHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 49. 36 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NETCHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 50. Shop Location 37 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 51. Shop layout 38 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 52. Promotion 39 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 53. 40 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NETCHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 54. Bibliographyhttp://www.mfa.org.my/http://www.just-food.com/store/product.aspx?id=77601http://www.ssm.com.my/en/docs/Procedure_Guidelines_for_Registration_of_a_Business.pdfhttp://www.mdkampar.gov.my/latarbelakang?p_p_id=56_INSTANCE_tKR1&p_p_lifecycle=0&p_p_state=normal&p_p_mode=view&p_p_col_id=column-3&p_p_col_count=1&page=2http://www.mfa.org.my/?franchise_article:pembangunan-sektor-francais-dalam-ekonomi-malaysiahttp://www.food-beverage-malaysia.com/http://www.bharatbook.com/Market-Research-Reports/Food-Drink-Report-Malaysia.htmlKAMPAR. (n.d.). The secret of Secret Recipe. Retrieved July 14, 2009, from http://biz.thestar.com.my/news/story.asp?file=/2009/3/21/business/3471796&sec=businsLENG, F. T., & BAHRI, S. (n.d.). Bright future for Kampar. Retrieved July 25, 2009, fromhttp://thestar.com.my/metro/story.asp?file=/2009/6/4/north/4010985&sec=NorthMalaysia Food and Drink Report Q3 2009 (download) - Food Market Research Reports. (n.d.). Retrieved July 15, 2009, from http://www.just-food.com/store/product.aspx?id=77601 41 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI
  • 55. SHOPLOT NEAR KAMPAR PERAK UTAR KTAR FOR RENT LEASE in Malaysia @ Adpost.com Classifieds > Malaysia > SHOPLOT NEAR KAMPAR PERAK UTAR KTAR FOR RENT LEASE in Malaysia,free,malaysian,classified ad,classified ads. (n.d.). Retrieved July 15, 2009, from http://www.adpost.com/my/homes_offices/36677/ Secret Recipe |Cyber Cafe, Internet Cafe, Coffee Shop, Coffee House, Bistro Cafe, Beach Café | Ad | 88DB Malaysia. (n.d.). Retrieved July 14, 2009, from http://my.88db.com/my/Services/Post_Detail.page/Food_Beverage/Caf%C3%A9/?PostI D=51382Sophia. (n.d.). Secret Recipe, Café & Cake House, Malaysia. Retrieved July 14, 2009, from http://www.streetdirectory.com/malaysia/kl/food_advisor/review/new/restaurant- secret_recipe_a_successful_formula-305.phpSuruhanjaya Syarikat Malaysia. (n.d.). Retrieved July 16, 2009, from http://www.ssm.com.my/en/services_acts.phpThe Official Website of Department of Statistics Malaysia. (n.d.). Retrieved July 15, 2009, from http://www.statistics.gov.my/eng/cakes, v. o., food, f., & service., d. (n.d.). Secret recipe franchise. Retrieved July 16, 2009, from http://www.secretrecipe.com.my/secretrecipe/catalog/content/57/index.htmlsecret recipe franchise. (n.d.). Retrieved August 10, 2009, from http://www.secretrecipe.com.my/secretrecipe/catalog/content/372/60/index.html 42 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

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