Intro to Business- Project 1

2. IMPLEMENT FASHION SPORTS
JEREMY SCOTT, A FASHION
DESIGNER WHICH COLLABORATE
WITH ADIDAS.

4. Extra Services:
o Jersey Customization
You provide
the design
Consult us for
fashion advice

5. Detail on customization
Alternation by professionals

6. Sports never gets bored.

7. LOCATION OF OUR SHOP
SUNWAY PYRAMID
LOT 10, KL

8. Reasons

9. Market Analysis

10. Global Sports Industry

11. Malaysian Sports Industry
10 years

12. Meet Our Customer
Young Old

13. Potential competitors
o Malaysia’s biggest sporting
goods retailer
o 120 outlets over the peninsula
o Over 9 million people visited
their store annually
o Family-owned global footwear
and fashion accessories
manufacturer and retailer
o Retail presence over 70
countries
o Recognisable presence in local

14. Potential competitors

16. Marketing Strategies

17. Open a shop that has its very own
unique sports environment

19. Create our own website

20. Selling our products through online

21. Free Postage & Delivery

22. Customer Is Our Priority
For any defective items

23. Celebrity Endorsement???

24. Friends’ Spokesmen

25. Advertising
 Organise events like:
1. Marathon
2. Tournament
3. Sports charity

26. Pricing
Moderate  A bit pricey
Pros & Cons: Cheap – People see it as a bad item and lose
confidence in it
Promotional activities: Y.E.S, CNY sale, Aidilfitri sale, etc

27. Special booth setups

28. Management Strategies

29. LLC (Limited Liability Company)
 Flexible form of enterprise that blends elements of partnership and corporate
structures.
 Profits and losses can be passed down to owners without taxation of the
business
 Owners are shielded from personal liability

30. CEO CEO
CEO CEO
Sales
department
Manager
Sales team
Marketing
department
Manager
Marketing
team
Human
resources
department
Manager
Human
resource team
Finance
department
Manager
Financial
Analyst
Operations
department
Manager
Operations
team
Exec.
Secretary
General
Manager

31. FINANCIAL PLAN
OWNERS CAPITAL
JACK
JASON
SIMPSON
NIK
BANK RAKYAT
MYR 50,000
MYR 50,000
MYR 50,000
MYR 50,000
TOTAL OWNERS CAPITAL MYR 200,000
Bank Loan
MYR 300,000
TOTAL CAPITAL MYR 500,000

32. FINANCIAL PLAN
START-UP EXPENSES
RENT
GRAND OPENING EVENT
TELEPHONE AND UTILITIES
BUSINESS INSURANCE
ADVERTISING AND PROMOTION
RENOVATION
COMPUTER (CASHIER)
SIGNAGE
BUSINESS/OFFICE SUPPLIES
OTHER
MYR 7,000
MYR 10,000
MYR 1,200
MYR 3,000
MYR 7,000
MYR 200,000
MYR 7,000
MYR 3,000
MYR 1,000
MYR 2,000
START-UP EXPENSES MYR 241,200
START-UP INVENTORY MYR 10,000
START-UP CASH MYR 2,000
TOTAL START-UP EXPENSES MYR 253,200

33. FINANCIAL PLAN
SALES FORECAST
YEAR 1 YEAR 2 YEAR 3
UNIT SALES
SHOES 2345 2900 3205
FASHIONS (CLOTHES) 1600 2100 2400
ACCESSORIES 890 905 1200
TOTAL UNIT SALES 4835 5905 6805
UNIT PRICE
SHOES MYR 150 MYR 150 MYR 150
FASHIONS (CLOTHES) MYR 100 MYR 100 MYR 100
ACCESSORIES MYR 80 MYR 80 MYR 80

34. FINANCIAL PLAN
YEAR 1 YEAR 2 YEAR 3
SALES
SHOES MYR 351,750 MYR435,000 MYR480,750
FASHIONS (CLOTHES) MYR 160,000 MYR210,000 MYR240,000
ACCESSORIES MYR 71,200 MYR 72,400 MYR 96,000
TOTAL SALES MYR582,950 MYR717,400 MYR816,750
DIRECT UNIT COST
SHOES MYR 50 MYR 50 MYR 50
FASHIONS (CLOTHES) MYR 30 MYR 30 MYR 30
ACCESSORIES MYR 20 MYR 20 MYR 20

35. FINANCIAL PLAN
YEAR 1 YEAR 2 YEAR 3
DIRECT COST OF SALES
SHOES MYR 117,250 MYR145,000 MYR160,250
FASHIONS (CLOTHES) MYR 48,000 MYR63,000 MYR72,000
ACCESSORIES MYR 17,800 MYR 18,100 MYR 24,000
TOTAL DIRECT COST OF SALES MYR183,050 MYR226,100 MYR256,250

36. FINANCIAL PLAN
YEAR 1 YEAR 2 YEAR 3
PROFIT AND LOSS
SALES MYR582,950 MYR717,400 MYR816,750
DIRECT COST OF SALES MYR183,050 MYR226,100 MYR256,250
TOTAL COST OF SALES MYR 399,900 MYR 491,300 MYR 560,500
GROSS MARGIN MYR 399,900 MYR 491,300 MYR 560,500
EXPENSES
PAYROLL MYR 46,000 MYR 46,000 MYR 46,000
SALES AND MARKETING AND OTHER
MYR 20,000 MYR 21,000 MYR 22,000
EXPENSES
TELEPHONE/PAGERS/CELL MYR 1,800 MYR 1,800 MYR 1,832
UTILITIES MYR 3,000 MYR 3,800 MYR 3,900

37. FINANCIAL PLAN
YEAR 1 YEAR 2 YEAR 3
PAYROLL TAXES MYR 3,000 MYR 4,000 MYR 4,500
TOTAL OPERATING EXPENSES MYR 73,800 MYR 76,600 MYR 78,232
PROFIT BEFORE INTEREST AND TAXES MYR 326,100 MYR 414,700 MYR 482,268
EBITDA MYR 326,100 MYR 414,700 MYR 482,268
INTEREST EXPENSES MYR 25,000 MYR 25,000 MYR 26,000
TAXES INCURRED MYR 30,000 MYR 31,289 MYR 32,499
NET PROFIT MYR 271,100 MYR 358,411 MYR 423,769

38. FINANCIAL PLAN
PROFIT WE EARNED
(100%)
= OTHER EXPENSES
(60%)
+ OWNERS
(40%)
/ 4 OWNERS
(10% each)

39. FINANCIAL PLAN
FOR THE FUTURE:
THE PROFIT OF THE COMPANY WILL
KEEP ON INCREASING.
ALL OUR DEBTS WILL BE CLEARED
OUT IN FIRST TWO YEARS.
THE COMPANY WILL KEEP ON
GROWING AND EXPAND.

40. Reference
 Dr. Aminuddin Yusof(November 2008). Globalization and The Malaysian Sports
Industry. Retrieved from
http://www.academia.edu/3358510/Globalization_and_the_Malaysian_Sports
_Industry
 Statista(2014).Global sports market revenue by component from 2009 to
2011. Retrieved from http://www.statista.com/statistics/269782/sector-share-
of-total-global-sports-revenues/
 Kerin, R., & Hartley, S. (2007). Marketing: The core (2nd ed., pp. 186-189).
Boston, Mass.: McGraw-Hill/Irwin
 McDonald, M. & Keegan, W. J. (1997). Marketing plans that work. Boston:
Butterworth-Heinemann.
 Barrow, C. (2007). Starting a business for dummies (2nd ed., p. 99). Hoboken,
N.J. :Wiley.