Entrepreneurship Assignment 2 Body

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3033 Entrepreneurship

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Executive Summary
Executive Summary Kuching Friendly Computer Consulting Services (KFCCS) is friendly computer consulting services for the people of Kuching. KFCCS is founded by Kenneth Chong and Catherine Ling. KFCCS specializes in on-site computer, laptop, and other computer related electronic repairs for Kuching people at an affordable cost. KFCCS specializes in, in Home and On-Site Small Business Computer Repair, Product Support: Laptops, Desktops, and Attached Peripherals, Hardware Installation: Components, Printers, iPods, Etc., Spyware Removal, Virus Removal, Peace of Mind Service Plans (Preventative Maintenance), Custom Built PC's (Gaming Computers, Specialty Business Systems), Upgrades: Hardware & Software, Restoration Services (Fire, Flood, Etc.), Laptop Power Jack Repair (DC Jack), Insurance Quotations/Estimations, Family Internet Filtering, Data Recovery and Data Backup Solutions, New Installation and Reinstallation of Software, Windows, and Other Software, Home and Small Business Networking (Wired & Wireless), Outlook Calendar Sharing Solutions, Product Training & Tutorials, Free Computer Help Articles. We service just about any PC out there that is Microsoft Windows based: Custom, Dell, HP, Compaq, Sony, Acer, Alienware, & More. It is a new computer consulting company and has the potential to have a steady growth and to expand one day by becoming the most efficient and well-known computer consulting company in Kuching and then perhaps Malaysia. The total costs for running this computer consulting company is about RM 500,000. The purpose of having such a Business Plan is so that we are able to plan well or to have a good guide as to how our resources flows and how to utilized them well for our own benefits.

Main Body of Business Plan
Introduction Kuching Friendly Computer Consulting Services (KFCCS) is friendly computer consulting services for the people of Kuching. KFCCS is founded by Kenneth Chong and Catherine Ling. KFCCS specializes in on-site computer, laptop, and other computer related electronic repairs for Kuching people at an affordable cost. KFCCS specializes in, in Home and On-Site Small Business Computer Repair, Product Support: Laptops, Desktops, and Attached Peripherals, Hardware Installation: Components, Printers, iPods, Etc., Spyware Removal, Virus Removal, Peace of Mind Service Plans (Preventative Maintenance), Custom Built PC's (Gaming Computers, Specialty Business Systems), Upgrades: Hardware & Software, Restoration Services (Fire, Flood, Etc.), Laptop Power Jack Repair (DC Jack), Insurance Quotations/Estimations, Family Internet Filtering, Data Recovery and Data Backup Solutions, New Installation and Reinstallation of Software, Windows, and Other Software, Home and Small Business Networking (Wired & Wireless), Outlook Calendar Sharing Solutions, Product Training & Tutorials, Free Computer Help Articles. We service just about
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any PC out there that is Microsoft Windows based: Custom, Dell, HP, Compaq, Sony, Acer, Alienware, & More. Our business is located at Lot 3.08, Third floor, Wisma Saberkas, Jalan Green/Jalan Rock, 93150 Kuching, Sarawak, Malaysia. The business will commerce on 1st July 2010. We choose to have this business because most people in Kuching are computer literate and there is a high percentage of young people and young adults. Plus, by providing such service such as by customizing built PC's (Gaming Computers, Specialty Business Systems), we are able to help the different groups of people (youngsters, young adults and new companies) with our new system and service. The future prospects for our business is that there is a possibility that more people will come to our company for servicing their computers or laptops as we are able to provide additional computer consulting services to our customers and clients as we are specialized in our field of expertise as compare to other companies who does not fully specialized in computer consulting services but is more towards selling computers, laptops, computer accessories, laptop accessories, mp3 players, mp4 players, and computer and equipment.

Purpose This business plan is prepared by Kuching Friendly Computer Consulting Services (KFCCS) for the purpose of obtaining working capital loan from Maybank for the amount of RM 250,000.

Company Background The name of our company is Kuching Friendly Computer Consulting Services (KFCCS) and it is located at Lot 3.08, Third floor, Wisma Saberkas, Jalan Green/Jalan Rock, 93150 Kuching, Sarawak, Malaysia and the correspondence address is at Lot 3.08, Third floor, Wisma Saberkas, Jalan Green/Jalan Rock, 93150 Kuching, Sarawak, Malaysia. Our customers can contact us at our website at http://www.kfccs.com.my and our company’s email address is at [email protected]. We can be contacted at this telephone number: 082456668. We are a specialized computer consulting service company that specializes in various on-site computers, laptop, and other computer related electronic repair services for Kuching. Our main activities are to provide various types of computer consulting services, such as operation technical problems, software applications, computer and laptop repairs, help other to connect with other electronic devices for example; camera, CCTV, and audio/video equipment and others security applications, sales of accessories. Our business wills commerce on the 1st July 2010. The date of registration for KFCCS is on 1st of May 2010 and the registration number is No.56066/2010.

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Malayan Banking Bhd, Jalan Satok. Bank Account No. 111153896601.

Owner/Partners Background Kenneth Chong Kah Hing is the main owner and operator of Kuching Friendly Computer Consulting Services (KFCCS). His identification card number is 750120-55-5233 and his permanent address is at Lot. 85, 66, Jalan Green, 92150 Kuching, Sarawak. His correspondence address is at lot. 85, 66, Jalan Green, 92150 Kuching, Sarawak. Kenneth’s telephone number is 082-455680 and his personal working handphone number is 016-8666799. His date of birth is 20th January 1975 and he is 35 years old. He is still single. His academic qualifications are Degree in Computer Information Systems and Computer Engineering. He has attended several computer information systems workshop when he was working under Mr. Jacob in a J’s Computer Shop as a computer consultant service technician. He also attended several public seminars on how to be a good entrepreneur, time management and how to cope with stress in working life. He has excellent computer programming skills as well as able to the various types of hardware and software that is suitable of each unique computer or laptop that belongs to the customer or just about any computer or laptop and other related computer or laptop problems that needed fixing. He has 5 years of experience in the computer technical field when he was working under Mr. Jacob in J’s Computer Shop as a computer consultant service technician. And he has an excellent record of being one of the best computer consultant service technicians under Mr. Jacob. His present occupation is working as a computer consultant service technician in GoodWay Computer Bhd. His previous business experience mostly comes from working under Mr. Jacob and working for GoodWay Computer Bhd. Catherine Ling is Kenneth’s Current Assistant of Kuching Friendly Computer Consulting Services (KFCCS). Her identification card number is 800306-66-5606 and her permanent address is at lot 125, 78 Jalan Poh Kuang Park, 93150 Kuching, Sarawak. Her correspondence is at lot 125, 78 Jalan Poh Kuang Park, 93150 Kuching, Sarawak. Catherine’s telephone number is 082-466567 and her personal working handphone number is 016-8828667. Her date of birth is 6th March 1980 and she is 30 years old. She is still single. Her academic qualifications are Degree in Computer Programming and Business Management. So far she has not yet attended any courses because the company she is working under now does not offer any additional training or computer courses. However, she did attend for various courses outside her working schedule such as Time Management, How to manage office or work stress, How to relax, and How to be creative with what you have. She is skillful in business management and some computer programming skills when she worked for Mr. Lim as a business manager in Harpy Computer Sdn. Bhd. and she sometimes helped around in the technician area of this company when the technician’s of Harpy Computer Sdn. Bhd. takes annual leave, or when they are sick or when they resign. She has about 3 years experience in mainly business management and minor in computer programming while she was working in Harpy Computer Sdn. Bhd.. Her present occupation is a sales manager in HappyWay Sdn. Bhd. selling various vitamins, skin and healthy products to customers in
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Kuching. She has about 2 years working experience while working as a business manager in Elle Company previously after she graduated.

Location of the Business KFCCS is located at Lot 3.08, Third floor, Wisma Saberkas, Jalan Green/Jalan Rock, 93150 Kuching, Sarawak, Malaysia. KFCCS is located inside Wisma Saberkas and it is the first shop lot facing the central escalator entrance of Wisma Saberkas. It is a medium size shop lot at least 2,000 square feet with concrete floor and proper partition and sound proof and fire proof partition. And the rental of the shop lot is about RM12, 000 per month, plus service charges (RM1, 200 per month). Must have electricity, telephone lines, and Wi-Fi, broadband and also StreamyX.

Administrative Plan Kuching Friendly Computer Consulting Services (KFCCS) is an affordable on-site computer, laptop, and other computer related electronic repair consulting service that plans to help Kuching local people on any computer or laptop issues whenever they have encounter any problems on their computer and laptop problems such as computer networking, spyware removal, virus removal, repair or replace spoilt hard disc or hard drive, backing up their computers or laptops for business purposes and even installing of new computer or laptop software for our customers. Our mission is to become a leading provider of high quality computer, networking and Internet based solutions consulting services. We achieve our mission by providing economical, reliable, and customized solutions that increase a business's or organization's efficiency, productivity and profitability while reducing its total cost of ownership and management. We are a business's strategic partner for information technology. Our vision is to provide better computer consulting services, customer friendly services, and up-to-date services and to achieve steady growth of our company. The objectives of KFCCS are to: 1. Profit - To generate sufficient profit to finance future growth and to provide the resources needed to achieve the other objectives of the company and its owner.
2. Growth - Steadily grow the business at a rate that is both challenging and manageable,

leading the market with innovation and adaptability.
3. Citizenship - To be an intellectual and social asset to the community and environment.

Kuching Friendly Computer Consulting Services (KFCCS) business structure:
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The head manager (Kenneth Chong)

The assistant manager (Catherine Ling)

Sales Officer

Accounts Clerk

Operations Officer

Administrati ve Clerk

Technical experts

Our business structure is based mainly on the different positions in the company as shown in the organizational chart above. Below is shown a list of all the staff positions in our company and the number of active staff working in our company:

Position The head manager The assistant manager Sales officer Accounts clerk Operations officer Administrative clerk Technical experts

Number of Staff 1 1 1 1 1 2 3
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Besides that, we also have a schedule of tasks and responsibilities for each of the staffs’ position and their purpose as to holding the particular post as shown below:

Position The head manger

Main Tasks • •
• •

To plan, implement and control the overall management of the business. To plan and monitor the strategies progress of the business. Plan, direct and coordinate various aspects of his operating business. Will ensure that vendors and suppliers are properly compensated and continue to meet the needs of the company. Will screen, interview, hire and train managers and supervisors that report to him Is responsible for ensuring that administrative services are completed and addressed in a timely fashion. Is required to implement the company’s policies and procedures. Ensure that his managers and supervisors implement and support the policies with their crews. Help to assist the head manager in his business. Also expected to act as a liaison between the senior manager and the various teams that are working, in order to achieve a common objective. Supports the manager in the day-today running of a specific department,
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• •

The assistant manager






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office or store.


Focusing her time on directing the work of subordinates. Also be responsible for ensuring that health and safety policies are adhered to. Involved in training of other staff, and perform paperwork duties. To create a marketing/sales plan for events, products and services. Responsible to show our customers what we are offering is worth buying. To push a product or service and close a deal. Maintains files, including filing of general ledger journal vouchers, accounts payable documentation, and other miscellaneous filings. Types a variety of documents, reports, and records. Keys daily worksheets to the general ledger system. Prints daily accounts payable checks and inserts checks and invoices into envelopes for mailing. Prepares requisitions for office, computer, and routine supply purchases. Assumes responsibility for effectively researching, tracking, and resolving (or properly referring) accounting or documentation problems and discrepancies. Maintains regular contact with other departments to obtain and convey
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Sales officer

• •

• Accounts clerk •

• • •







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information and/or to correct transactions. • Keeps management informed of area activities and of any significant problems. Attends and participates in meetings as required. Ensures that work area is clean, secure, and well maintained. Completes special projects and miscellaneous assignments as required. Audit daily sales reports. Discuss report results with manager and assistant manager. Post data to sales journal. Handle customer and employee accounts receivable. Assist with accounts payable, prepare checks. Assist with payroll preparation. Other duties as assigned. Is responsible for regularly supporting the manager. Ensures operational activities run smoothly and efficiently. Provides leadership, training and limited supervision within the company. Promotes business for our company by maintaining good customer relations and referring customers to appropriate personnel for new services.
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• • •

• •

• • • • • Operations officer
• •





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Performs limited supervisory duties as assigned by the head manager. Is responsible for providing administrative and clerical services in order to ensure effective and efficient administrative operations. Types agendas for meetings. Attends records and transcribes minutes of all meetings. Transcribes formats, inputs, edits, retrieves, copies and transmits correspondence, documents, data and graphics. Word processes all manuscripts, letters, documents and proposals. Records, date stamps and distributes all incoming mail. Processes outgoing mail. Compiles and maintain an up to date telephone directory of numbers and addresses. Files all correspondence. Updates the bulletin board by posting and removal of outdated materials. Ensures the Administrative Offices and Reception Area are kept clean and organized. Provide receptionist services. Lead the implementation of an integration solution and drive the design effort. Write, test, and maintain the detailed instructions, called programs that computers must follow to perform

Administrative clerk



• •





• • •

• •





Technical experts





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their functions.


Conceive, design, and test logical structures for solving problems by computer. Update, repair, modify, and expand existing programs. Skillful in testing and debugging. Responsible for both the systems analysis and the actual programming work. Work directly with other experts from various fields to create software either program designed for specific clients or packaged software for general use, ranging from games and educational software to programs for desktop publishing and financial planning. Able to write programs to handle a specific job, such as a program to track inventory within an organization as well as revise existing packaged software or customize generic applications called middleware. Able to write programs to maintain and control computer systems software, such as operating systems, networked systems, and database systems.



• •







Then there’s a schedule of remuneration (and as such also includes non-monetary benefits): Position No. Monthly Salary (RM) 2,500 EPF SOCSO Contribution (RM) (RM) 500 100 Total Amount (RM) 3,100 Other benefits (RM) Annual bonus +
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The head manager

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petrol allowance The assistant manager 1 1,800 360 72 2,232 Annual bonus + petrol allowance 1% of his sales and annual bonus Annual bonus 0.25 % of his work value and annual bonus Annual bonus 1% of work value and annual bonus

Sales officer

1

900

180

36

1,116

Accounts clerk Operations officer

1 1

700 750

140 150

28 30

868 930

Administrative 2 clerk Technical Experts 3

600 2,250

120 450

24 90

1,488 8,370

Here we also include the appropriate list of office furniture and equipment needed that is necessary to facilitate layout planning and budget considerations: Item Office Furniture Personal Computers Quantity 10 sets 11 sets (1 spare in case of computer Price/per Unit (RM) 2,000 3,000 Total Cost (RM) 20,000 33,000

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breakdowns) Canon Printer MX868 (5 in one printer) Air -conditions Tele-fax machines Telephones 2 sets 6 sets 2 sets 3 sets 1,600 3,000 500 Supply by telecom 3,200 18,000 1,000 Supply by telecom

We also need to include the administrative budget which consists of: Fixed assets where investments are made in the purchase of assets that will be used in the organization for a period more than one year. Monthly expenses that refers to the payments that have to be made every month as part of maintaining the business existence (for example; electricity, telephone, water, rental, and office supplies) Other expenses are the expenses that do not fall into the above categories such as vehicle road tax, insurance, business registration fees and others. Item Fixed Assets Monthly ExpensesElectricity Monthly ExpensesWater Monthly ExpensesRental Monthly ExpensesOffice supplies Other Monthly Expenses-Insurance Other Monthly Expenses-Business Registration Fees (But is RM25 per year) Total Cost (RM) 75,200 400 25 13,200 60 200 2

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Marketing Plan Product/Service Description of KFCCS We provide various kinds of computer consultation services such as in Home and On-Site Small Business Computer Repair, Product Support: Laptops, Desktops, and Attached Peripherals, Hardware Installation: Components, Printers, iPods, Etc., Spyware Removal, Virus Removal, Peace of Mind Service Plans (Preventative Maintenance), Custom Built PC's (Gaming Computers, Specialty Business Systems), Upgrades: Hardware & Software, Restoration Services (Fire, Flood, Etc.), Laptop Power Jack Repair (DC Jack), Insurance Quotations/Estimations, Family Internet Filtering, Data Recovery and Data Backup Solutions, New Installation and Reinstallation of Software, Windows, and Other Software, Home and Small Business Networking (Wired & Wireless), Outlook Calendar Sharing Solutions, Product Training & Tutorials, Free Computer Help Articles. We service just about any PC out there that is Microsoft Windows based: Custom, Dell, HP, Compaq, Sony, Acer, Alienware, & More. This is mainly because we specialize in mainly providing such services for our customers. It is also mainly because that we found out that more and more teenagers, young adults and new companies needed our unique services as there is a new demand for our services in this market. Teenagers and young adults are interested in upgrading their computers or laptops for gaming and doing projects as well as with their assignments or works that require computer or laptop programming and installation of new software and hardware while new companies require our services to upgrade or to install new software and hardware as well as installation of new programs to help them run their company more efficiently and more effectively and to be up-to-date and to follow the business trend these days. Besides that, we also provide spyware removal and virus removal for all our customers. This is also because now a days, laptops and computers are prone to being hacked or getting virus online as more and more people surf the internet for various purposes.

Target Market However, our main target market will be teenagers, young adults, and new companies. This is because based on our survey and marketing research, we realized that this target market is one of the largest in Kuching as compare to other market segments. Through our marketing research and consumer behavior research we also realized that this group of people are more interested in computer consultant services as well as computer-related issues or problems or information and this is an added advantage to our company. This is because these groups of people are computer literate and they also understand how a computer or laptop works and these groups of people will find for helping with their computer or laptop problems as well as helping them update anything that has to do with their computers or laptops such as update of
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computer or laptop anti-viruses or even updating their computer or laptop software and hardware for business or leisure purposes.

Market Size The market size for our target customers would be about 35 percent to 40 percent of Kuching’s population and it is growing to about 2 per cent each year. This especially applies to the growth of young pc and laptop users throughout Kuching as well as new companies who are bound to use our services to compete well with other companies in Kuching.

Competition Based on our company KFCCS, we need to analyse well as to who are our competitors are and determine their strengths and weaknesses and also to determine our own strengths, weakness, opportunity, and threats for our own company so that we are able to compete well with our competitors. Below are the lists of our competitors as well as their strengths and weaknesses: Strengths PCimage Sdn. Bhd • •


Weaknesses • Only specializes in various computer and laptop products as well as accessories but mostly focus on the sale of computers, laptops and their accessories.

Good brand name Customer friendly Provided free computer services and laptop services when customers buy computers or laptops from them Provides computer and laptop consultation services for a few but is properly done and their technicians are experience people in their field of expertise. Customer friendly Specializes in various computers and laptops and their parts as well



Goodway Computer Sdn. Bhd




• •

Still new to the market (just opened not long ago) Only specializes in various computer and laptop products as
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as their accessories

well as accessories but mostly focus on the sale of computers, laptops and their accessories. • Small company Still new to the market Only specializes in various computer and laptop products as well as accessories but mostly focus on the sale of computers, laptops and their accessories. Small company Still new to the market Only specializes in various computer and laptop products as well as accessories but mostly focus on the sale of computers, laptops and their accessories. Small company Limited computer consultation resources to enable them provide proper consultation services for their customers

Green Road Computer Sdn. Bhd.

• •

Customer friendly Provided a few free of charged services even if the customers did not purchase any computers or laptops or computer related accessories from them. Customer friendly

• •

• • •

Boulevard IT Superstore



• •

Compuway Sdn. Bhd.

• • •

Good brand name Customer friendly Provided free computer services and laptop services when customers buy computers or laptops from them Provides computer and laptop consultation services for a few but is



Only specializes in various computer and laptop products as well as accessories but mostly focus on the sale of computers, laptops and their accessories.



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properly done and their technicians are experience people in their field of expertise.

Below is our company’s SWOT Analysis: Strengths •


Weaknesses • • Still new to the market Open to new threats relating with computer, laptop and even computer consultation services

Friendly customer service Specializes in various computer consulting services Able to provide free computer services that are not so complicated



Opportunities • • Opportunities to expand and grow steadily over time Opportunities to develop better quality computer consultation services

Threats • Our competitors who are specialized in both computer and laptop products and services Threats to newcomers



Market Share The possible market share we can obtain is about 20 per cent of the market size if we are able to provide good and excellent computer consulting services as well as good or excellent customer services and after-sales services so that we will constantly have repeated customers and more new customers over time. Sales forecast Pro Forma Cash Flow Year 1 Cash Received Cash from Operations Cash from Receivables RM 480,000 RM 50,000 RM 576,000 RM 60,000 RM 691,200 RM 72,000 Year 2 Year 3

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Subtotal Cash from Operations Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing

RM 530,000 RM 0 RM 0 RM 0

RM 636,000 RM 0 RM 0 RM 0 RM 0 RM 0 RM 0 RM 0 RM 0 RM 636,000

RM 763,200 RM 0 RM 0 RM 0 RM 0 RM 0 RM 0 RM 0 RM 0 RM 763,200

New Other Liabilities RM 0 (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received RM 0 RM 0 RM 0 RM 0 RM 530,000

Expenditures Expenditures from Operations Cash Spending Subtotal Spent on Operations Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out

Year 1

Year 2

Year 3

RM 0 RM 390,000 RM 0 RM 0

RM 0 RM 390,000 RM 0 RM 0 RM 0 RM 36,000

RM 0 RM 390,000 RM 0 RM 0 RM 0 RM 36,000
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Principal Repayment RM 0 of Current Borrowing Other LiabilitiesRM 36,000

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Interest Payment Long-term Liabilities Principal Repayment Purchase Other Current Assets Subtotal Cash Spent Net Cash Flow Cash Balance RM 0 RM 0 RM 426,000 RM 104,000 RM 104,000 RM 0 RM 0 RM 426,000 RM 210,000 RM 210,000 RM 0 RM 0 RM 426,000 RM 337,200 RM 337,200

Pro Forma Profit and Loss Year 1 Direct Cost of Sales Other Costs of Sales (Software, Software licensing fee, Hardware) Total Costs of Sales Gross Margin Gross Margin % RM 480,000 RM 10,000 Year 2 RM 576,000 RM 15,000 Year 3 RM 691,200 RM 10,000

RM 490,000 RM 104,000 21.23%

RM 591,000 RM 210,000 35%

RM 701,200 RM 337,200 48%

Expenses Payroll

RM 60 RM 220,000

RM 60 RM 242,000 RM 6,000 RM 158,400 RM 5,100 RM 2,400 RM 25 RM 413,985

RM 60 RM 266,200 RM 6,000 RM 158,400 RM 5,100 RM 2,400 RM 25 RM 438,185

Marketing/Promotion RM 6,000 Rent Utilities Insurance Other Total Operating Expenses RM 158,400 RM5,100 RM 2,400 RM 25 RM 391,985

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Profit Before Interest and Taxes Interest Expense Taxes Incurred Net Profit Net Profit/Sales

RM 104,000 RM 36,000 RM 0 RM 68,000 13.88%

RM 210,000 RM 36,000 RM 0 RM 174,000 29.44%

RM 337,200 RM 36,000 RM 0 RM 301,200 42.95%

Marketing Strategy We will market our product and services according to product and service strategy, pricing strategy and our direct to consumer strategies as well as various promotion strategies to meet the demand of the market.

Product/Service strategy Under product/service strategy, we will provide ourselves with a good brand name by slowly establishing ourselves as a unique product and service that is different from our competitors. We also value added services for laptops and computers free for simple computer and laptop problems to encourage our customers to come back to our shop to service their computers and laptops when they are in complicated computer and laptop trouble. This is also to encourage customer loyalty to our product and services that we provide for them. We also make sure our products and service provided is unique and different so that our customers are able to recognize and remember our product and service that is different from our competitors. Besides that, we also make sure that our products and services provided are of good quality or excellent quality especially when dealing with computer consultation services. We make sure our computer technicians are skillful and provide excellent computer consultation services at a good price as well as to perform well in providing such services. We also make sure that our services provided are off good quality or excellent quality by ensuring that our service provided is reliable, precise and excellent to ensure that their computers or laptops that are sent for servicing will perform well after our service. We also provides our customer with unique customization of computer programs and softwares as well as hardwares to suit their need and demand of our customer. We also provides various service packages to suit our customers need and demand of the market and to fulfill their needs and wants well by providing these unique personalize packages for our targeted customers. This helps us to be different from our competitors due to these unique

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services. We also makes sure that our services provided is also attractive and of good to excellent quality so we will always have repeated customers and new customers coming in. We also provide after sales services if our customers find that there maybe some errors in our services or needed corrections, we will do so , so that our customers are always happy and satisfied with our services. We also make an effort to improve our services for the benefit of our customers.

Pricing Strategy We provide value-based pricing that is where our customers’ perception of the value of our product and service. We also did proper research on our services and products that are provided for sell. We noticed that from our competitors if they provided too high pricing for their products and services, it resulted in poor sales while pricing too low on their products and services will generate less revenue than they would if the price were raised to the perceived value level. On the other hand, we also use competitor pricing so that we are able to compete with our competitors but to also enable us to provide better quality services and packages than our competitors. This is because we assume that our customers judge a product’s value or service value on the competitors’ prices as well as their quality of service. So, we need to be able to be competitive in the market. We have to sometimes follow our competitors’ pricing on their products and services while provided good or excellent quality products and services for our customers. By applying these two kinds of pricing strategy, we will be able to at least main and keep our repeated customers while encourages new customers to purchase our products or/and our services more often over a longer period of time.

Distribution Strategy We will then apply the distribution strategy when we choose who and how our products or/and our services are distributed. As such, distribution strategy is aimed at establishing a structured and controllable distribution system to ensure the product offered or services offered reaches the targeted customer. A distribution channel moves goods from producers to customers. In our business, we choose to provide our products or/and services directly to our customers. This is because it has no intermediary level and consists of a business selling directly to customers. Besides that, we also provide selling our products from selling through retailers or selling through wholesalers. This is because we do not produce or make our own computer or laptop
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parts or accessories needed for servicing our customers’ computer. We also noticed it is much cheaper to just buy through a good retailer or retailers, wholesaler or wholesalers and just service our customers’ computer or laptop as when needed. This is also because we want to concentrate mainly on our computer consultation services for our customers as we are more specialized in this field of expertise.

Promotion Strategy We also apply promotion strategy for our business. This strategy is used to disseminate information about the company’s product or services with the purpose of attracting the target market. Our target markets are a group of people who are teenagers, young adults and new companies. So to apply this strategy, we need to advertise, have sales promotions, and to build good public relations and have good publicity so that our customers will be aware of our company as well as to encourage them to purchase products or/and services from us. By advertising through various media format such as by printed media (newspapers, magazines, and yellow pages), by broadcast media (television, radio, and cable TV), by internet (through websites) and by also outdoor activities (billboard, banners). Now and then we also have sales promotions where we give short incentives or special offers to encourage our customers to comeback for our services or by giving special offers where our customers can get free online games pack installation for a good value and as well as extra computer consulting packages for our regular customers who are interested in upgrading or updating their software and hardware and their programs for various purposes such as for assignments, projects and various company activities that require computer consulting services. Besides that, we also need to have public relations and good publicity so that we will have more customers coming to our company for computer consulting services. Public relations functions includes press relations, public affairs and investor relations. And we also need to emphasize on free media attention such as in articles, magazines, newspapers, TV or radios. This is to attract our customers attention and to ensure that they are aware of our company and its services to the community.

Marketing Budget Item Personal Computers Canon Printer MX868 (5 in one printer) Fixed Assets Expenses (RM) 33,000 3,200 Monthly Expenses (RM) Other Expenses (RM)

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Promotions Office Furniture Air-conditions Tele-fax machines Telephones Electricity Water Rental Office supplies Insurance Business Registration Fees 20,000 18,000 1,000

500

400 25 13,200 60 200 25 per year

Operational Plan Process Flow Chart Computer or Laptop Servicing Process Chart

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Customer/ Customers yes Ask for computer or laptop service Head manager

Company/ Companies

no

Assistant manager

Recommends best or suitable

Technician

Install, replace, improve, modify, creates or service computers or laptops

no yes End no

Check satisfy at home or office

Customer checks on the spot

yes no Customer satisfy on the spot

yes

End

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Manpower Requirement Position The head manager The assistant manager Sales Officer Accounts clerk Operations officer No. 1 1 1 1 1 Job Status Permanent Permanent Permanent Permanent Permanent Permanent Permanent Remuneration EPF per month RM 2,500 RM1,800 RM 900 RM 700 RM 750 RM 600 RM2,250 RM 500 RM 360 RM 180 RM 140 RM 150 RM 120 RM 450 SOCSO RM 100 RM 72 RM 36 RM 28 RM 30 RM 24 RM 90 Total RM 3,100 RM 2,232 RM 1,116 RM 868 RM 930 RM 1,488 RM 8,370

Administrative 2 clerk Technical experts 3

Machine and equipment Item Office Furniture Personal Computers Canon Printer MX-868 (5 in one printer) Air-condition Tele-fax machine Telephone Price per Unit RM 2,000 RM 3,000 RM 1,600 No. Required 10 sets 11 sets 2 sets Total Cost RM 20,000 RM 33,000 RM 3,200 Supplier Chan’s Furniture Shop Dell Computer Sdn. Bhd. Canon Sdn. Bhd.

RM 3,000 RM 500

6 sets 2 sets 3 sets

RM 18,000 RM 1,000 Supply by telecom

LG Sdn. Bhd Canon Sdn. Bhd. Supply by telecom

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Operations Layout Plan

18800mm

27800mm

18700mm

Symbols:

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Location KFCCS is located at Lot 3.08, Third floor, Wisma Saberkas, Jalan Green/Jalan Rock, 93150 Kuching, Sarawak, Malaysia. KFCCS is located inside Wisma Saberkas and it is the first shop lot facing the central escalator entrance of Wisma Saberkas. It is a medium size shop lot at least 2,000 square feet with concrete floor and proper partition and sound proof and fire proof partition. This will be where all our activities are done and held.

Operation Overheads Item Monthly ExpensesElectricity Monthly ExpensesWater Monthly ExpensesRental Monthly ExpensesOffice Supplies Monthly ExpensesInsurance Total Costs (RM) 400 25 13,200 60 200

Other Monthly 2 Expenses- Business Registration Fees (But is RM 25 per year) Telephones Supply by telecom

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Operations Budget Item Personal Computers Canon Printer MX868 (5 in one printer) Promotions Office Furniture Air-conditions Tele-fax machines Telephones Electricity Water Rental Office supplies Insurance Business Registration Fees 400 25 13,200 60 200 25 per year 20,000 18,000 1,000 Fixed Assets Expenses (RM) 33,000 3,200 500 Monthly Expenses (RM) Other Expenses (RM)

Financial Plan Financial Plan Pro Forma Balance Sheet Year 1 Year 2 Year 3
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Assets Current Assets Cash Accounts Receivable Other Current Assets Total Current Assets

RM 75,200 RM 0 RM 480,000 RM 50,000 RM 0 RM 605,200

RM 75,200 RM 0 RM 552,000 RM 60,000 RM 0 RM 687,200

RM 75,200 RM 0 RM 634,800 RM 72,000 RM 0 RM 782,000

Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets RM 7,450 RM 0 RM 605,200 RM 6,700 RM 0 RM 687,200 RM 6,050 RM 0 RM 782,000

Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Retained Earnings Total Capital

Year 1 RM 391,985 RM 0 RM 0 RM 10,000 RM 401,985 RM 450,000 RM 851,985 RM 104,000 RM 554,000

Year 2 RM 413,985 RM 0 RM 0 RM 10,000 RM 423,985 RM 405,000 RM 828,985 RM 210,000 RM 615,000

Year 3 RM 438,185 RM 0 RM 0 RM 10,000 RM 448,185 RM 364,500 RM 812,685 RM 337,200 RM 701,700

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Conclusion Based on this Business Plan, we both hope to gain the approval of the bank as well as the possible potential investors to invest in our company’s business as well as to be able to provide a good or excellent computer consulting service to our Kuching Community. We also hope that by proper planning we are able to fulfill the needs of our Kuching Society which mainly consists of teenagers, young adults as well as many new companies who may need of our service. We also hope our plan goes smoothly after such a long business plan.

Appendix
Pro Forma Cash Flow Year 1 Cash Received Cash from Operations RM 480,000 RM 576,000 RM 691,200 Year 2 Year 3

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Cash from Receivables Subtotal Cash from Operations Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing

RM 50,000 RM 530,000 RM 0 RM 0 RM 0

RM 60,000 RM 636,000 RM 0 RM 0 RM 0 RM 0 RM 0 RM 0 RM 0 RM 0 RM 636,000

RM 72,000 RM 763,200 RM 0 RM 0 RM 0 RM 0 RM 0 RM 0 RM 0 RM 0 RM 763,200

New Other Liabilities RM 0 (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received RM 0 RM 0 RM 0 RM 0 RM 530,000

Expenditures Expenditures from Operations Cash Spending Subtotal Spent on Operations Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment

Year 1

Year 2

Year 3

RM 0 RM 390,000 RM 0 RM 0 RM 0

RM 0 RM 390,000 RM 0 RM 0 RM 0

RM 0 RM 390,000 RM 0 RM 0 RM 0
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of Current Borrowing Other LiabilitiesInterest Payment Long-term Liabilities Principal Repayment Purchase Other Current Assets Subtotal Cash Spent Net Cash Flow Cash Balance RM 36,000 RM 0 RM 0 RM 426,000 RM 104,000 RM 104,000 RM 36,000 RM 0 RM 0 RM 426,000 RM 210,000 RM 210,000 RM 36,000 RM 0 RM 0 RM 426,000 RM 337,200 RM 337,200

Pro Forma Balance Sheet Year 1 Assets Current Assets Cash Accounts Receivable Other Current Assets Total Current Assets RM 605,200 RM 687,200 RM 782,000 RM 480,000 RM 50,000 RM 552,000 RM 60,000 RM 634,800 RM 72,000 RM 75,200 Year 2 RM 75,200 Year 3 RM 75,200

Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets RM 605,200 RM 687,200 RM 782,000 RM 7,450 RM 6,700 RM 6,050

Liabilities and Capital Current Liabilities

Year 1 RM 391,985

Year 2 RM 413,985

Year 3 RM 438,185
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Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Total Capital RM 104,000 RM 554,000 RM 210,000 RM 615,000 RM 337,200 RM 701,700 RM 10,000 RM 401,985 RM 450,000 RM 851,985 RM 10,000 RM 423,985 RM 405,000 RM 828,985 RM 10,000 RM 448,185 RM 364,500 RM 812,685

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