Introduction Plan

LITTLE CAKES & CAFE THE ORIGIN OF CUPCAKES
1.0 INTRODUCTION OF THE

ORGANIZATION
COPYRIGHT OF LITTLE CAKES & CAFE Page 1

1.1 COMPANY LOGO
LITTLE CAKES & CAFE
LITTLE CAKES & CAFE is the name of our cupcakes shop. Little Cakes is representing
our main product of business that is cupcakes while Cafe is representing other services
that we provided in our business that is food and beverage. The used of cupcakes
picture is to make the logo more interesting, make it not look to messy as well as to
make the people easy to remember Little Cakes & Cafe. The colours that we have
choose as our own personality and image of the business is purple and pink. It is
because we want to create something different than other cupcakes shop and bring a
relaxing and simple ambiance or concept for our cupcakes shop so our customer can
fell that they truly fell the relaxing experience in Little Cakes & Cafe.

THE ORIGIN OF CUPCAKES
We use this tagline to attract the customers’ attention and at the same time as a result
people will get know and keep in their mind about us, our products. In addition, THE
ORIGIN OF CUPCAKES means our customer who bought our cupcakes will feel the
truly and cupcakes which is different from any cupcakes shop. Besides that, the
cupcakes that we provided to customers are originally baked, used of natural material
for the ingredients and the recipe that comes from our own staff.

1.2 NAME OF THE COMPANY
Little Cakes & Cafe
1.3 NATURE OF THE BUSINESS
Provide unique combination of flavours and beautiful decoration of cupcakes at value
pricing with a fun, relaxing, leisure and entertaining atmosphere whereby including other
services such as food and beverage and Wi-Fi for our customer satisfaction.
1.4 INDUSTRY PROFILE
Industry analysis is the outlook for the specific industry where we look at the level of
competition in the industry. As for the food industry, the evaluation of the competitive
position is an essential and a vital element for us. Our competitors consist of various,
well-known, and yet the established cupcake shops that have survived in the industry to
a great extent of economic difficulties such as Bisou Bake Shop, Cupcake Chic, A Taste
Boutique, White Daisy’s Cupcakes, Basic Stories Cupcakes & Cafe and many more.
These are some of the cupcake shops in Kuala Lumpur. Another consideration that we
analyst is the demand in cupcake market was increasing from year to year. This is
because of the trend and lifestyle of the people nowadays. The benefits of being in this
industry include meeting people, adding income, gaining independence and enjoyable
way of life and perhaps restoring a new building. The business can give great
satisfaction as it grows into a valuable investment or market.

1.5 LOCATION OF THE BUSINESS
Little Cakes & Cafe located at Seksyen 7, Shah Alam. Geographically strategic located
nearby Universiti Teknologi Mara, Shah Alam (UiTM, Shah Alam), bank, Kentcuky Fried
Chicken (KFC), petrol station Petronas, Oldtown White Coffee and other shop lot at
Pusat Komersial, Seksyen 7. Besides that, our cupcakes cafe is located in the shop lot
nearby to the I-City.
1.6 DATE OF BUSINESS COMMENCEMENT
08th August 2010
1.7 FACTORS IN SELECTING THE PROPOSED BUSINESS
We choose to open this cupcakes cafe because mainly for business purposes and to
earn profit. Apart from that, the demands of cupcake are being placed in the market as
the trends and lifestyles of the people nowadays. Therefore, we would like to take this
great opportunity to involve in this business. Finally, we want to implement all the
knowledge and skills gained from our studies.

1.8 FUTURE PROSPECTS OF THE BUSINESS
We are striving to satisfy our customer with great and friendly services thus generate
profit. Little Cakes & Cafe will try to enter or list of the well-known, and yet the
established cupcake shops that have survived in the industry. Besides that, we are
looking forward to compete with our competitors in Seksyen 7, Shah Alam such as
White Daisy’s Cupcakes, Diya’s Cupacakes, Cuppy Cuppy and Basic Stories Cupcakes
& Cafe by open other other cupcake businesses which are include food and beverage
services in other places like Petaling Jaya, Subang Jaya and Kelana Jaya and the same
time become the top rated cupcakes shop every year.

2.0 PURPOSE

This business plan is prepared by Little Cakes & Cafe as a guideline for managing the
proposed business. Besides that, this business plan prepared to evaluate the project
viability and growth potential and to allocate business resources effectively. Other than
that, it prepared by Little Cakes & Cafe for the purpose of obtaining working capital from
Maybank Berhad for the amount RM 562 000.00.

3.0 COMPANY BACKGROUND
NAME OF THE BUSINESS : Little Cakes & Cafe

BUSINESS ADDRESS : No. 3, Jln Plumbum S7/7, Seksyen 7,
40000 Shah Alam, Selangor
WEBSITE : littlecakescafe@com.my
EMAIL : info@littlecakes&cafe.com.my
TELEPHONE NUMBER : 03-5557223
FORM OF BUSINESS : Private Limited Company
MAIN ACTIVITIES : Food and Beverage
DATE OF REGISTRATION : 07th July 2010
DATE OF COMMENCEMENT : 08th August 2010
INITIAL CAPITAL : RM 66 000.00
NAME OF THE BANK : Maybank Berhad
BANK ACCOUNT NUMBER : 88-082656597-1

4.0 BACKGROUND OF OWNER

AND PARTNERS

GENERAL MANAGER
Name : Siti Safiah bt Azaan
I/C No. : 820508-56-5458
Permanent Address : No. 30 Jln SM 9, Sunway Batu Caves,
68100 Selangor.
Correspondence : No. 23, Taman Bunga Raya, Seksyen 2,
Address 40450 Shah Alam, Selangor Darul Ehsan
Phone No. : 012-6474247
Date of Birth : 8th May 1982
Age : 28 years
Marital Status : Single
Academic Qualification : 1) Diploma in Accounting
2) Bachelor Degree in Business
Administration
Courses Attended : Business, Entrepreneurship Course
Skills : 1) Event Management
2) Speak fluently in both English and Malay
3) Microsoft office
4) Customer service
Experiences : 4 years working experience in Corporate

Sector
Previous Business : General Executive at MapletreeLog (M)
Holdings Sdn. Bhd (6 years)
Experience
Present Occupation : General Manager at Little Cakes & Cafe
ADMINISTRATION MANAGER
Name : Maheran bt Nadzri
I/C No. : 840316-08-6240
Permanent Address : No. 109 Bt 18, Ladang Kuala Bernam,
36000 Teluk Intan, Perak
Correspondence : No. 28, Tmn Bunga Kekwa, Seksyen 2,
Address 40450 Shah Alam, Selangor
Phone No. : 019-4796492
Date of Birth : 16th March 1984
Age : 26 years
Academic Qualification : 1) Diploma in Office management
2) Bachelor Degree in Human Resource
Management

Courses Attended : Secretarial Course, Entrepreneurship
Course
Skills : 1) Public Relations
2) Microsoft Office
3) Speak fluently in both English and Malay
Experiences : 2 years experience working in retail
business as Human Resource Manager
Previous Business : Human Resource Executive at De Palma Inn
Experience (5 years)
Present Occupation : Administration Manager at Little Cakes &
Cafe
OPERATION MANAGER
Name : Josphine Anak Lubong
I/C No. : 820616-13-5876
Permanent Address : No. 34, Tmn Reveria, 94399 Kota
Samarahan, Sarawak
Correspondence : No. 23, Tmn Manggis, Seksyen 2, 40450
Address Shah Alam, Selangor

Phone No. : 013-2041548
Date of Birth : 16th June 1982
Age : 28 years
Academic Qualification : 1) Diploma in Culinary Arts
2) Bachelor Degree in Food Service
Courses Attended : Food Service Course, Entrepreneurship
Course
Skills : 1) Kitchen
2) Good at giving clear instructions to
employees
3) Speak fluently in both English,Malay and
Iban
Experiences : 2 years experience working at Corporate
Sector as Operation Executive
Previous Business : Operation Executive at Famous Amos
Experience Junior (4 years)
Present Occupation : Operation Manager at Little Cakes & Cafe

MARKETING MANAGER
Name : Nurain Fatiha bt Teh Saharun
I/C No. : 820424-06-5814
Permanent Address : No. 8 Lrg 1C, Jln Sri Sementa, Taman
Sementa, 40000 Shah Alam, Selangor
Correspondence : No. 28, Tmn Bunga Kekwa, Seksyen 2,
Address 40450 Shah Alam, Selangor
Phone No. : 014-2110381
Date of Birth : 24th April 1982
Age : 28 years
Academic Qualification : 1) Diploma in Business Studies
2) Bachelor Degree in Business Studies
Courses Attended : Business Course, Entrepreneurship Course
Skills : 1) Event Management
2) Marketing & Advertising
3) Microsoft Office
4) Public Relations
Experiences : 2 years working experience in retail
business as Marketing Executive

Previous Business : Marketing Executive at Empire Automation
Experience Sdn. Bhd.
Present Occupation : Marketing Manager at Little Cakes & Cafe
FINANCIAL MANAEGER
Name : Ezanee bin Zulkifli
I/C No. : 801032-03-5131
Permanent Address : No. 78 Taman Permai, 16040 Kota Bharu,
Kelantan
Correspondence : P1-17A Tingkat 1, Jalan Plumbum, U7/U
Address Pusat Komersial Seksyen 7, 40000 Shah
Alam, Selangor
Phone No. : 013-2965555
Date of Birth : 23rd October 1980
Age : 30 years
Academic Qualification : 1) Diploma in Accountancy
2) Bachelor Degree in Finance

Courses Attended : Cultural Studies Course, Entrepreneurship
Course
Skills : 1) MYOB Software
2) Financial Accounting
3) Microsoft Office
4) Public Relations
Experiences : 4years working experience in business as
Financial Executive
Previous Business : Financial Executive at Illustrated Magazine
Experience Publishing Sdn. Bhd.
Present Occupation : Financial Manager at Little Cakes & Cafe
5.0 ADMINISTRATION PLAN

5.1 INTRODUCTION TO THE ORGANIZATION
VISION
• To be a highly regarded and reputable cupcakes shop in Klang Valley to serve
the needs and wants of the customers from other places.
• To expand our business by opening 2 new branches within 5 or 7 years.
• To provide a good quality of cupcakes.
MISSION

• To introduce our product into the competitive market and to be accepted by
customers.
• To continue introducing new designs and variety of flavours in our product, that
is cupcakes.
• To reach our targeted sales for the first year.
OBJECTIVES
• To establish and operate cupcakes cafe for the people who are living at Klang
Valley.
• To provide with the friendliest services with affordable prices of cupcakes and
other services.
BUSINESS ADDRESS : Little Cakes & Cafe,
No.3, Jln Plumbum S7/7, Seksyen 7, 40000
Shah Alam, Selangor Darul Ehsan
LOCATION PLAN :
RESIDENT AREA UiTM BHP

PETROL
PETRONAS SHELL CALTEX
LITTLE
COPYRIGHT OF LITTLE CAKE & CAFE
CAKES Page 20
& CAFE
WE ARE
HERE!
TYPE OF BUILDING : Shop-Office
INFRASTRUCRURE
LAND AREA : 22 × 7
BUILT-UP : 1320 sq.ft
GENERAL MANAGER
5.2 ORGANIZATIONAL CHART
SITI SAFIAH BT AZAAN
MARKETING OPERATION
ADMINISTRATION FINANCIAL
MANAGER MANAGER
MANAGER MANAGER
COPYRIGHT OF LITTLE CAKES & NURAIN

CAFE FATIHA JOSPHINE ANAK Page 21
MAHERAN BT BT TEH SAHARUN LUBONG EZANEE BIN
NADZRI ZULKIFLI
5.3 LIST OF ADMINISTRATION PERSONNEL
Position No. of Personnel

General Manager 1
Administration Manager 1
Operation Manager 1
Marketing Manager 1
Financial Manager 1

5.4 SCHEDULE OF TASKS AND RESPONSIBILITIES
Position Tasks and Responsibilities

General Manager • Complete management responsibilities in
ensuring the company objective and mission can be
achieved according to plan.
• Supports motivation of employees in
organization products or programs and operations.
• Looks to the future for change opportunities.
• Oversees the overall operations of organization.
• Analyze monthly report of every department.

Administration Manager • Update and maintain database with accurate
client information.
• Controlling the financial expenses for

administration department.
• Identify and inform the duties every department.
• Management of staff’s salary payment, bonuses
and incentive, EPF and SOCSO.

Operation Manager • Manage the quality of products and ensure
problems are handled efficiently.
• To set a rules and procedures for staff to follow
in order for department run smoothly.
• Manage and determine the operation cost
adequate with the company budget.

Marketing Manager • To set a strategic marketing plan for the
company and identify new marketing opportunities.
• Promoting the products and services of the
business to the customers.
• Analyze SWOT (Strength, Weakness,
Opportunity and Threat) of the company and
strengths and weaknesses of our competitors.
• Prepared the department report and submit to
the top manager.

Financial Manager • Manage and control the overall budget,
expenses and profits of the company.
• Prepare monthly and annual cash flow and
income statement.
• Researching and reporting on factors influencing
the business performance
• Managing a company's financial accounting,
monitoring and reporting systems.

5.5 LABOUR INCENTIVES
EMPLOYEES TRAINING
The employees of the organization, particularly the operational staffs, are trained in on-
the-job training to gain and improve their skills in the matters baking cupcakes, customer
service and the work-flow systems. Other than that, a more experience workers can be
the leader.
SALARY REVIEW
Salary review will be made once a year for the services of the confirmed staff. The basic
salaries will be paid once a month on the 28th every month. It is the basic salaries that
are paid in cash payable for the work done. Any increase in the salary shall depend on
the decision of the top management.

ANNUAL LEAVES
Application of the leaves must be made a week before the commencement date of leave
No. Position Days of annual leaves

1. General Manager 20
2. Administration Manager 20
3. Operational Manager 20
4. Marketing Manager 20
5. Financial Manager 20
requested. The authority to approve annual leaves applications are given to the General
Manager of Little Cakes & Cafe.
SICK LEAVE
The staffs are allowed to take a sick leave if they get sick or injuries occurred. Sick leave
can be taken if there are medical certificate from any doctors in private or government
medical institutions.
BONUSES
The top management will give bonuses to all employees if the targeted profits are
achieved in the particular year. The bonuses will be given according to amount of
contribution from the top management according to the profit of the year.
EMPLOYEE PROVIDENT FUND (EPF)
In planning the salaries of the employees and the manager, the Employee Provident
Fund (EFPF) and Social Security Organization (SOCSO) are provided. The Employee
Provident Fund (EPF) is a scheme that provides retirement benefits for members

through the management of their savings in an efficient and reliable manner. These
savings are accrued for each employee through contributions from employees and their
employers in their monthly wages. The amount accrued for EPF is 13% of the monthly
salary.
SOCIAL SECURUTY ORGANIZATION (SOCSO)
The Social Security Organization (SOCSO) operates as a social insurance scheme
provided by the Government of Malaysia to provide aid in financial guarantees and
protection to employees and their families in the event of accidents resulting in
disablement, death or affliction with occupational diseases. SOCSO amount to be
accrued is 2% from the monthly salary.

5.6 SCHEDULE OF REMUNERATION
Position No. Monthly Salary EPF (13%) SOCSO Total
(RM) (RM) (2%) (RM) (RM)

General 1 2 600.00 338.00 52.00 2 990.00
Manager
Administration 1 2 100.00 273.00 42.00 2 415.00
Manager
Operation 1 2 200.00 286.00 44.00 2 530.00
Manager
Marketing 1 2 000.00 260.00 40.00 2 300.00
Manager
Financial 1 2 300.00 299.00 46.00 2 645.00
Manager
TOTAL 12 880.00

5.7 OFFICE EQUIPMENTS
Item Quantity Price/Unit (RM) Total (RM)

Computer 5 1 300.00 6 500.00
Air Conditioner 3 999.00 2 997.00
Multi Function 1 500.00 500.00
Printer/Fax
Telephone 3 200.00 600.00
Photocopy machine 1 10 000.00 10 000.00
A4 Paper 4 10.00 40.00
Receipt Book 10 2.00 20.00
File Holder 6 3.50 21.00
Total 20 678.00
5.8 FURNITURE AND FITTINGS

File Cabinet 5 200.00 1 000.00
Notice Board 1 20.00 20.00
Table 5 300.00 1 500.00
COPYRIGHT OFChair
LITTLE CAKES & CAFE 7 90.00 Page 29
630.00
Total 3 150.00
5.9 RENOVATION

Flooring - - 3 000.00
Lighting - - 700.00
Total 3 700.00
5.10 REGISTRATION EXPENSES
Item Amount (RM)

Business License & Registration 3 000.00
Telephone 410.00
Internet Connection Installation 173.00
Total 3 583.00

5.11 ADMINISTRATION BUDGET
Type Fixed Asset Monthly Other Expenses
(RM) Expenses (RM) (RM)

Office Equipment 20 678.00
Furniture and Fittings 3 150.00
Renovation 3 700.00
Salaries 12 880.00
Rental 3 000.00
Fire Extinguisher 300.00

6.0 MARKETING PLAN

INTRODUCTION
Marketing plan is one of the main aspects that are very important in order to expand
market and introduce our product and make sure there is an improvement in the
business. Furthermore, the marketing plan also helps the business to expand all the
information regarding the potential customer, marketing strategy and marketing analysis.
It will give impacts to the business plan within the business then contribute to a good
company profitability and image.
Marketing plan is a part of the business which can help us to promote the business to the
customer. Besides that, through the marketing plan there are giving more choices to the
customer besides introducing a new concept in attracting the customers and promote our
product market. Other than administration and operational, the marketing also has a
direct contact with the customer in order to fulfill their needs. To gain higher profits,
marketing should be able to predict the customer’s desire and try to get the customer
attention to try our product. As a preparation to provide an effective marketing plan we
have to come out with the marketing analysis, target market and marketing strategy.
Marketing is and exchange activity that takes place between a business entity and its
customers. The customers can be anyone from individuals, other business entities (e.g.
wholesalers, retailers or dealers) to support organization (e.g. banks, government

agencies or non-government organization). This is achieved by deciding on the best way
to advertise a products or services or what price to charge for it.
MARKET DEFINITION
Marketing can be defined as the activities that are carried out systematically to encourage
and increase sales of products or services as long as the activities are in line with
religious and ethical practices. Basically, the marketing activities will help the
entrepreneur to sell and promote their products to customer. Marketing definition also can
be referring to several basic elements. Here, the marketing activities must be planned
and implemented in systematic manner in order to achieve the business goals. If not, it
can give the result of wasted unnecessarily and effecting the business performance and
profit. The resources such as time, money and man-power should be managed properly.
The systematic marketing effort will ensure that the customers well attracted and
motivated to use the business products or services that are being offered. Thus, it is
important to encourage purchaser by the first-time in order to promote the product and
also encourage them to come again. The first experience will give the positive perception
about the level of the services of the business. These previous two factor must be based
on awareness of religious boundaries and ethical practices. Marketing should ensure that
marketing activities are not contra with the religious consideration of the target market
and the population generally.

6.1 PRODUCT OR SERVICE DESCRIPTION
The Little Cake offers a variety of cupcakes size and flavours. All cupcakes are beautifully
decorated and freshly baked as the needs and wants of the customer. The Little Cake
produces a cupcakes using only the freshest and most natural ingredients and free from
trans-fat and preservatives. Besides that, 60% of our business is come from a special
order of the needs and wants of the customer while the other 40% of our business is filled
by special cravings by our own staff. To fulfil the needs and wants of the target customer,
our company will always come out with a new decoration and design of cupcakes.

6.2 TARGET MARKET
Target market can be define as the groups of customers that have needs and want that
can be satisfied by the business through the supply of goods and services. Businesses
need to focus their marketing activities towards certain groups of customers. These
customers are choosing based on the business ability to satisfy needs and wants of the
group. These selected customers are known as target market.
To ensure Little Cake is achieving its objective, first among all we must select our target.
Our target group of customers that have a needs and wants can be satisfied by the
business through the produce a cupcakes. The market that we are targeting ranged
mainly for those who are love cupcakes regardless teenagers and kids, working mothers,
residents of urban areas, students and people who are getting married. According to the
research that we have done, a target market must be identified to accomplish the
customers of their requirements in addiction to bring profit through the product we give to
them.
Target market is a place where we want to market our product or give services to
customers. First of all, our company has to decide where the best place to market out
product which most strategic whereby all of the customer can see our business. Finally,
we come out with the decision to open our business in Seksyen 7, Shah Alam area. This

is the strategic place for us to selling our product because based on our view and
analyzed this place is in developing place.
Our customers can be broadly divided into three groups :
1. Weekend getaway customers.
• These people are like to hang out and spend time outside home during weekend
such as parents will bring their children go to our cupcakes cafe and enjoy with our
cupcakes and meals that we provided with a relaxing and simple ambience.
2. Students.
• These people are studying in the Universiti Teknologi Mara, Shah Alam (UiTM),
Pusat Teknologi & Pengurusan Lanjutan (PTPTL) and Management & Science
University (MSU).
3. Residents of urban area.
• These people are living in the urban areas, nearby to our shop and prefer to live a
hassle-free lifestyle. They rather buy something than having themselves made it on
their own.

6.3 MARKET SIZE
Market size refers to the total potential purchase of the target market which includes
purchase of competitor products within the same market. It is normally stated in term of
unit or “Ringgit Malaysia (RM)” and it can be calculated daily, weekly, monthly and yearly.
When we are alert the current and expected market potential, it will helps us to have
better plan businesses, marketing and sales activities.
From the sources of statistic department, the populations people in Shah Alam are
around 580,000 peoples include the people who are studying in University in Shah Alam.
Therefore, our target people that will buy cupcakes are 350,000 peoples.
Below are steps that show how we determine our market size.
Step 1
• We assume that people will go to cupcakes shop.
7% X 350 000 people = 24 500 people
Step 2
• We assume that amount of money that people willing to spend for cupcakes for a
month.

24 500 people x RM 24 = RM 588 000
Step 3
• We assume that amount of money that each people willing to spend at our cupcakes.
24 500 people X RM 12 = RM 294 000
6.4 COMPETITORS
Little Cake competitors are the business firms that provide similar product to the same
target. Our main competitors also focus on the same customers as their target market.
From our survey, we identified that there are four competitors cupcakes shop around
Shah Alam which is provide exactly same product.
Name of the company Strength Weakness

White Daisy’s Cupcakes  Has been well  Lack of staff
known by the customer

 Lack of equipments
 Has operates the
business for more than 4
years
 Have more
experience
Diya’s Cupacakes  Well-known by most  Homemade
of the customer cupcakes
 Location business in  Lack of staff
the middle of resident
Cuppy
COPYRIGHT OF Cuppy
LITTLE CAKES & CAFE  Affordable price  Hidden location
Page 39
 Good promotion
Basic Stories Cupcakes &  Friendly service  Small premises
Cafe
 Newly establish with  Unattractive
new furniture environment
 CCTV  Narrow building
Little Cakes & Cafe  Product quality  New in the market
 Beautiful design and
used natural material for
the ingredients of
cupcakes
 Hired qualified and
skill staff
 New equipments
and technologies

6.5 MARKET SHARE
• Present scenario (without Little Cake)
Name of the company Monthly Sales (RM) Market Share (%)

White Daisy’s Cupcakes 235 200.00 40
Diya’s Cupacakes 176 400.00 30
Cuppy Cuppy 88 200.00 15
Basic Stories Cupcakes & 88 200.00 15
Cafe
Total 588 000.00 100%
PERCENTAGE BEFORE ENTERING THE MARKET

44%
44%
44%
44%
White Daisy’sCupcakes
Diya’s Cupacakes
Cuppy Cuppy
Basic Stories Cupcakes & Café
• With the present of Little Cake in the market

Name of the company Monthly Sales (RM) Market Share (%)

White Daisy’s Cupcakes 229 320.00 39
Diya’s Cupacakes 164 640.00 28
Cuppy Cuppy 82 320.00 14
Basic Stories Cupcakes & 64 680.00 11
Cafe
Little Cake 47 040.00 8
Total 588 000.00 100%
PERCENTAGE AFTER ENTERING THE MARKET

4%
44%
33%
44%
44%
White Daisy’sCupcakes
Diya’s Cupacakes
Cuppy Cuppy
Basic Stories Cupcakes & Café
Little Cakes & Café
6.6 SALES FORECASTS

Month Sales
Unit RM
Month 1 12 000 144 000.00
Month 2 12 900 154 800.00
Month 3 15 000 180 000.00
Month 4 16 500 198 000.00
Month 5 14 000 168 000.00
Month 6 11 035 132 420.00
Month 7 151 000 181 200.00
Month 8 11 000 132 000.00
Month 9 16 500 198 000.00
Month 10 18 020 216 240.00
Month 11 18 800 225 600.00
Month 12 19 200 230 400.00
Year 1 180 055 2 160 660.00
Year 2 (3%) 185 457 2 225 480.00
Year 3 (5%) 189 058 2 268 693.00
6.6 MARKETING STARTEGY
Even though our company is still new in the market, it is important for us to use
certain strategies that might attract our customers to buy our product. In order to
make sure that everything runs smoothly, we have decided 4 strategies that is
efficient and effective to attract our new customers.
• Product Strategies
In outlining with the product strategy, we will give full attention with the
ingredients that we used to produce cupcakes. Basically, we will used from
natural materials such as original chocolate powder and original fruits.

Besides that, we will come-out and ensure our cupcakes with free from trans-
fat or preservations. To make that our cupcakes are always looking fresh, we
will made based to order basic.
• Price Strategies
Usually, we have to complete with our competitor in term of pricing. As our
company just to grow, we need to attract more customers to come our
cupcakes shop and buy our cupcakes as our main product of business. This
is one of the strategies to attract them and make them a loyal customer for a
long period of time. In order to realize our dreams, our company, Little Cakes
& Cafe has offered our customer with variety types of size of cupcakes with
different price.
1) Cost-based pricing
We are choosing cost-based pricing as our pricing strategy. This is because
cost-based strategy is the simplest and most commonly used pricing strategy.
We count it based on the total cost of the cupcakes plus a standard mark-up.
The mark-up is the profit margin that is desired from the sales of the
cupcakes. The cost – based pricing is shown below :
Price = Total Cost Per Unit + Mark-up
Example of the calculated price such as :

Price = cost per unit + mark-up
= RM 3.00 + (17 % x RM 3.00)
= RM 3.00 + RM 0.51
= RM 3.50
2) Value – based pricing
We are also choosing value – based pricing as our pricing strategy. In value-
based pricing, the customer’s perception of the value of a product is a key
factors considered in pricing the cupcakes. This is because, our cupcakes is
presented in three sizes, small, medium and large. This perceived value is
associated with the benefits that our customers believe are received from our
product.
• Place Strategies
We are choosing the most common form of distribution channels as shown

below :
Manufacture Consumer
This type of channel is called the direct marketing channel or channel one.
We are choosing this channel because it is suitable for our business and
directly connected to our customers.

Our shop also stated at strategy area which is near workers and
neighbourhood’s area, at walking area, have wide space for parking and also
it is stated at away to I-City which is the new leisure area at Shah Alam. So
that more people will attract to go to our shop before they go to I-City.
• Promotion Strategies
1) Advertising
Advertising are non-personal, paid form of promotion through the mass
media. The most advertising strategy that we used is by creating brochures,
advertised at magazine and also with the World Wide Web.
2) Sales Promotion
Sales promotion is short-term incentives or the special offer to encourage
purchase or speed up the purchase decision. We are doing our sales
promotion by offer a student price, make a package for seasonal or occasion
event, member’s card and also a stamp for the customers. It will result that
many customers will come to our cupcakes cafe.
6.7 LIST OF MARKETING PERSONNEL

Marketing Manager 1
Sales Personnel 1
6.8 SCHEDULE OF TASK AND REPONSIBILITIES

Position Task and Responsibilities
Marketing Manager • To set a strategic marketing plan for
the company and identify new
marketing opportunities.
• Analyze SWOT (Strength,
Weakness, Opportunity and Threat) of
the company and strengths and
weaknesses of our competitors.

Sales Personnel • Promoting the products and services
of the business to the customers.
• Prepared the department’s report
and submit to the top manager.

(RM) (RM) (2%) (RM) (RM)
Marketing 1 2 000.00 260.00 40.00 2 300.00
Manager
Sales 1 1 500.00 195.00 30.00 1 725.00
Personnel
Total 4 025.00

6.10 MARKETING BUDGET
Type Fixed Asset Monthly Other Expenses

(RM) Expenses (RM) (RM)
Signboard 3500.00
Salaries 4 025.00
Grand Opening 3000.00

7.0 OPERATIONS PLAN

INTRODUCTION
A business will never be operated without an operational plan. No matter what products
or services of the business, there must be an operational plan.
Operational plan can be defined as the process of assemble resources to produce output
through the transformation process. The operation process comprises three main
components such as business input, transformation system and output.
Business input consists of all resources required to produce desire output such as raw
materials, machine and equipment, technology, information and capital. The
transformation system refers to the activities involved in transforming input into output.
This system involves planning of raw materials, designing of operational process,
planning of floor layout and distributing of man power in the organization.

OPERATION OBJECTIVE
The operation management need to be planned very properly as it is the main component
in any business proposal. Our business also had identified some of the objective of our
operation plan. Our operation objectives are:
 To optimized our customer’s satisfaction
 To accomplish consistency in the services offered
 To resolve any of operation problem and make all the operation process run
efficiently
 To ensure that all of the operation process in our business is functioning well to meet
the demand of our customers

7.1 ACTIVITY CHART
FLOW CHART FOR MANUFACTURING CUPCAKES

7.2 PROCESS FLOW CHART
PROCESS FLOW CHART FOR MANUFACTURING CUPCAKES

7.3 CAPACITY PLANNING
Capacity planning refers to the amount of output that can be produced within a specified
time. For daily production, we are required to produce 500 units of cupcakes. To produce
500 units of cupcakes it takes 5 hours.

• = 100 units of cupcakes per hour
We estimate that one worker can produced 50 units of cupcakes in 1 hour
• = 2 workers
Therefore, we need 2 worker to produced 50 units of cupcakes in 1 hour.
Little Cakes & Cafe was open on Monday until Sunday and will be closed during public
holiday. Our business will start the operation on 9.00 am until 11.00 pm because we want
to take much reservation and attract more customers comes to our cupcakes cafe.
7.4 MATERIAL REQUIREMENT
Item Amount Amount Amount Price/Unit Total

Required required/ required/ (RM) Purchase
for 100 cupcakes Month (Month)

cupcakes (RM)
40g/unit x
Flour 4 kg 40 g 13 440 = 1.50 806.40
537.6kg
0.05 units 1/unit x 672 =
(1 egg for 672 units

Egg 5 units 0.25 168.00
every 20
cupcakes)
20g/unit x
Butter 2 kg 20 g 13 440 = 1.50 403.20
268.8kg
20g/unit x
Sugar 2 kg 20 g 13 440 = 2.30 618.30
268.8kg
20g/unit x
Icing 2 kg 20g 13 440 = 2.00 537.60
268.8kg
Total 2 533.50
7.5 LIST OF OPERATION PERSONNEL
Operation Manager 1
Supervisor 1
Baker 1
Assistant Baker 1

Worker 2
Cashier 1
7.6 SCHEDULE OF TASKS AND RESPONSIBILITIES
Position Task and Responsibilities
Operation Manager • Manage the quality of products and ensure
problems are handled efficiently
• To set a rules and procedures for staff to follow in
order for department run smoothly
• Manage and determine the operation cost
adequate with the company budget

Supervisor • Developing and introducing new training plan to

the group
• Make sure that member of team follow
organization’s rules and policies
• Setting performance standards for task project and
roles of employees of the group

Baker • Prepared cupcakes for sale
• Create new recipe and design
• Ordering of necessary baking supplies

Assistant Baker • Closely follow daily list and see attached
• Responsible for cleaning bakery equipment by
closely following daily and weekly cleaning list
• Responsible for organizing product in preparation
for baker
Worker 1 • Welcomed the customer who entered to the shop
• Ensure the cleanliness of toilets and customer
table inside the shop
• Take order and serves drink and food to
customers
Worker 2 • Prepared for drinks and food for the customer
• To count all the food and beverage stock
• Ensure the cleanliness of the food and beverage
area
Cashier • Receive the money from customer
• Close the account everyday

This is our operation process schedule for all of staff that involved in daily roster.
Staff MON TUE WED THU FRI SAT SUN
Operation Manager O O O O O X X
Supervisor O O O O O O O
Baker O O O O O O O
Assistant Baker O O O O O O O
Worker 1 O O O O O O O
Worker 2 O O O O O O O
Cashier O O O O O O O
O = Worker day (Open Business)
X = Worker leave
(RM) (RM) (2%) (RM) (RM)

Operation 1 2 200.00 286.00 44.00 2 530.00
Manager
Supervisor 1 1 500.00 195.00 30.00 1 725.00
Baker 1 1 400.00 182.00 28.00 1 610.00
Assistant 1 1 000.00 130.00 20.00 1 150.00
Baker
Worker 2 700.00 91.00 14.00 1 610.00
Cashier 1 800.00 104.00 16.00 920.00
Total 9 545.00

7.8 OPERATIONAL EQUIPMENT
Item Price/Unit (RM) Quantity Total Cost (RM)
Baking oven 5 500.00 2 units 11 000.00
Cream Cooker 1 500.00 2 units 3 000.00
Spiral Mixer 3 300.00 2 units 6 600.00
Cupcake Pan/Tray 59.90 20 units 1 198.00
Cupcake 46.00 5 units 230.00
Stand/Tree
Refrigerator 4590.00 2 units 9 180.00
Cupcakes 2 390.00 1 units 2 390.00
Refrigerator
(curve glass display)
Spatula 2.50 2 dozen 5.00
Cup Measure 4.00 5 units 20.00
Bowls 5.00 20 units 100.00
Icing Bag 10.00 3 packet 30.00
Cupcakes Boxes 3.00 1000 boxes 3 000.00
Total 36 753.00

7.9 FOOD AND BEVERAGES
Soft Drink 34.00 5 dozen 170.00
Mineral Water 20.00 5 dozen 100.00
Straw 2.00 6 pack 12.00
Coffee Maker 150.00 1 unit 150.00
Buns 1.50 200 unit 300.00
Fork & Spoon 40.00 5 dozen 200.00
Table Set 550.00 5 set 2 750.00
Total 3 682.00
7.10 OTHER EQUIPMENTS
Cash Machine 350.00 1 350.00
Air Conditioner 1 000.00 2 2 000.00

Total 2 350.00
7.11 SUPPLIERS INFORMATION
Item Supplier
Food and Beverages International Centre of Cake Artisty Sdn.
Raw Materials Bhd.
Sunway Damansara wisma ICCA,

1, Jalan PJU 5/15,
Dataran Sunway, Kota Damansara,
47810 Petaling Jaya,Selangor.
Tel : 03-61408835
Fax: 03-61421501
Kitchen Equipment 1B Com Kitchen Expert Sdn. Bhd.
17, Jalan 5/36, Bukit Sri Bintang,
Kepong 52100 Wilayah Persekutuan,Kuala
Lumpur.
7.12 SPACE LAYOUT

SYMBOLS USED IN LAYOUT

SYMBOLS DESCRIPTIONS
Table Set
Food and Beverage
Cupcakes Display
Kitchen Area
Cashier
Washroom & Toilet
7.11 LOCATION
Little Cakes & Cafe located at No.3, Jln Plumbum S7/7, Seksyen 7, 40000 Shah Alam,
Selangor Darul Ehsan.

7.12 OPERATION OVERHEAD
Item Cost (RM)

Salary 9 545.00
Rent 3 800.00
Water 500.00
Electricity 2 500.00
Telephone & WI-FI 200.00
Total 16 545.00
7.13 OPERATION BUDGET
Type Fixed Asset Cost Monthly Expenses Other Expenses

(RM) (RM) (RM)
Machine & Equipment 32 170.00

Operation Equipment 4 583.00
Renovation 2 500.00
Raw Materials 2 533.50
Salary 9 545.00
Rent 3 800.00
Water 500.00
Electricity 2 500.00
Telephone & WI-FI 200.00
Maintenance 2 000.00
Other Equipments 2 350.00

8.0 FINANCIAL PLAN
INTRODUCTION
Financial planning is the most crucial aspect of this business plan as financial plan
incorporates all financial data derived from the operating budgets gathered from the
administration, marketing and operations department. Thus, financial planning can only
start when all the information and data have been gathered from others mentioned
department above. Business account will be much more systematic and prudent with

effective financial management planning. Thus, it is very important to have a good
financial planning. The purpose of financial plan are :
• To determine the size of investment
• To identify and propose the relevant sources of finance
• To ensure that the initial capital is sufficient
• To appraise the viability of the project before actual investment is
committed
• To be used as a guideline for implementation process
8.1 PROJECT IMPLEMENTATION COST SCHEDULE
ADMINISTRATIVE EXPENDITURE
Fixed Assets RM
3,15
Furniture and fittings 0
3,70
Renovation 0
20,6
Office equipment 78
Working Capital
Salaries,EPF & SOCSO 12,8

80
40
Utilities 0
30
Stationary 0
Pra-Operasi
3,00
Deposit (rent, utilities, etc.) 0
3,00
Business Registration & Licences 0
47,1
TOTAL 08
MARKETING EXPENDITURE
Fixed Assets RM
3,5
Signboard 00
Working Capital
1,7
Salary, EPF & SOCSO 25
4
Utilities 00
7,5
Advertisement 00
Pra-Operasi
Deposit (rent, utilities, etc.)
Business Registration & Licences
Insurance & Road Tax for Motor Vehicle
3,0
Other Expenditure 00
16,1
TOTAL 25
OPERATIONS EXPENDITURE
Fixed Assets RM
32,1
Machine and Equipment 70
4,5
Operation Equipment 83
2,5
Renovation 00

Working Capital
5,5
Raw Materials & Packaging 33
7,0
Salaries, EPF & SOCSO 15
3,2
Utilities 00
2,0
Maintenance 00
Pra-Operasi
3,8
Deposit (rent, utilities, etc.) 00
2,3
Other Expenditure 50
63,1
TOTAL 51
8.2 SOURCE OF FINANCE SCHEDULE
LITTLE CAKES & CAFE

PROJECT IMPLEMENTATION COST & SOURCES OF FINANCE
Project Implementation Cost Sources of Finance

Hire-
Requirements Cost Loan Own Contribution
Purchase
Existing F.
Fixed Assets Cash Assets
Land & Building

Furniture and fittings 3,150 1,150 2,000

Renovation 3,700 2,700 1,000
Office equipment 20,678 20,678
Signboard 3,500 3,500
Machine and Equipment 32,170 32,170

Operation Equipment 4,583 4,583
Renovation 2,500 2,500
Working Capital 12 months

162,96
Administrative 0 162,960
115,50
Marketing 0 115,500
212,97
Operations 6 212,976
Pre-Operations & Other Expenditure 15,150 15,150
Contingencies 7% 40,381 40,381
617,24
TOTAL 550,817 45,753 20,678
8
8.3 LOAN AMORTIZATION (REPAYMENT) SCHEDULE
Amount 550,817
Interest Rate 5%
Duration (yrs) 7
Method Baki Tahunan

Yea Total Principal

r Principal Interest Payment Balance
550,
- - 817
78, 27, 472,
1 688 541 106,229 129
78, 23, 393,
2 688 606 102,295 440
78, 19, 314,
3 688 672 98,360 752
78, 15, 236,
4 688 738 94,426 064
78, 11, 157,
5 688 803 90,491 376
78, 7, 78,
6 688 869 86,557 688
78, 3,
7 688 934 82,623 -
8 0 0 - -
9 0 0 - -
10 0 0 -
8.4 FIXED ASSET DEPRECIATION SCHEDULE
Fixed Asset Furniture and fittings

Cost (RM) 3,150
Method StraightLine
Economic Life
(yrs) 5
Accumulate
Annual d
Yea Depreciation Depreciation Book Value

r
- - 3,150
1 630 630 2,520
2 630 1,260 1,890
3 630 1,890 1,260
4 630 2,520 630
5 630 3,150 -
6 0 0 -
7 0 0 -
8 0 0 -
9 0 0 -
10 0 0 -
Fixed Asset Renovation

Cost (RM) 2,500
Method StraightLine
Economic Life
(yrs) 5
Accumulate
Annual d
Yea
r Depreciation Depreciation Book Value

- - 2,500
1 500 500 2,000
2 500 1,000 1,500
3 500 1,500 1,000
4 500 2,000 500
5 500 2,500 -
6 0 0 -
7 0 0 -

8 0 0 -
9 0 0 -
10 0 0 -
Fixed Asset Office equipment

Cost (RM) 20,678
Method StraightLine
Economic Life
(yrs) 5
Accumulate
Annual d
Yea

- - 20,678
1 4,136 4,136 16,542
2 4,136 8,271 12,407
3 4,136 12,407 8,271
4 4,136 16,542 4,136
5 4,136 20,678 -
6 0 0 -
7 0 0 -
8 0 0 -
9 0 0 -
10 0 0 -

Fixed Asset Signboard

Cost (RM) 3,500
Method StraightLine
Economic Life
(yrs) 5
Accumulate
Annual d
Yea

- - 3,500
1 700 700 2,800
2 700 1,400 2,100
3 700 2,100 1,400
4 700 2,800 700
5 700 3,500 -
6 0 0 -
7 0 0 -
8 0 0 -
9 0 0 -
10 0 0 -

Fixed Asset Machine and Equipment

Cost (RM) 32,170
Method StraightLine
Economic Life
(yrs) 5
Accumulate
Annual d
Yea

- - 32,170
1 6,434 6,434 25,736
2 6,434 12,868 19,302
3 6,434 19,302 12,868
4 6,434 25,736 6,434
5 6,434 32,170 -
6 0 0 -
7 0 0 -
8 0 0 -
9 0 0 -
10 0 0 -
Fixed Asset Operation Equipment

Cost (RM) 4,583
Method StraightLine
Economic Life
(yrs) 5

Accumulate
Annual d
Yea

- - 4,583
1 917 917 3,666
2 917 1,833 2,750
3 917 2,750 1,833
4 917 3,666 917
5 917 4,583 -
6 0 0 -
7 0 0 -
8 0 0 -
9 0 0 -
10 0 0 -
Fixed Asset Renovation

Cost (RM) 2,500
Method StraightLine
Economic Life
(yrs) 5
Accumulate
Annual d
Yea

- - 2,500
1 500 500 2,000

2 500 1,000 1,500

3 500 1,500 1,000
4 500 2,000 500
5 500 2,500 -
6 0 0 -
7 0 0 -
8 0 0 -
9 0 0 -
10 0 0 -
8.5 PROFORMA CASHFLOW STATEMENT

8.6 PROFORMA INCOME STATEMENT
LITTLE CAKES & CAFE

PRO-FORMA INCOME STATEMENT
Year 1 Year 2 Year 3

Sales 643,170 675,328 688,191
Less: Cost of Sales
Opening Stock of Finished
Goods 19,295 20,260
Production Cost 224,406 235,985 242,097
less: Ending Stock of Finishe
19,295 20,260 20,646
Goods
0 0 0
205,111 235,020 241,711
Gross Profit 438,059 440,308 446,480
Less: Enpenditure
Administrative Expenditure 162,960 167,849 172,884
Marketing Expenditure 115,500 118,965 122,534
Other Expenditure
Business Registration &
3,000
Licences
Insurance & Road Tax for Motor
Vehicle

Other Pre-Operations
5,350
Expenditure
Interest on Hire-Purchase
Interest on Loan 27,541 23,606 19,672
Depreciation of Fixed Assets 6,206 6,206 6,206
Total Expenditure 320,556 316,626 321,296

Net Profit Before Tax 117,503 123,682 125,184
Tax 32,901 34,631 35,051
Net Profit After Tax 84,602 89,051 90,132
Accumulated Net Profit 84,602 173,653 263,786
LITTLE CAKES & CAFE

PRODUCTION COST PRO-FORMA STATEMENT
Raw Materials
Opening Stock 0 3,683 3,867
Current Year Purchases 73,658 77,341 78,814
Ending Stock 3,683 3,867 3,941
Raw Materials Used 69,975 77,157 78,740
Carriage Inwards
69,975 77,157 78,740
Salaries, EPF & SOCSO 84,180 86,705 89,307
Factory Overhead
Depreciation of Fixed assets
(Operations) 7,851 7,851 7,851
Utilities 38,400 39,552 40,739
Maintenance 24,000 24,720 25,462
Total Factory Overhead 70,251 72,123 74,051

Production Cost 224,406 235,985 242,097

8.7 PROFORMA BALANCE SHEET
LITTLE CAKES & CAFE

PRO-FORMA BALANCE SHEET

ASSETS
Fixed Assets (Book Value)
Furniture and fittings 2,520 1,890 1,260

Renovation 2,960 2,220 1,480
Office equipment 16,542 12,407 8,271
Signboard 2,800 2,100 1,400
Machine and Equipment 25,736 19,302 12,868

Operation Equipment 3,666 2,750 1,833
Renovation 2,000 1,500 1,000
56,225 42,169 28,112

Current Assets
Stock of Raw Materials 3,683 3,867 3,941

Stock of Finished Goods 19,295 20,260 20,646

Accounts Receivable 6,429 6,191 6,308
Cash Balance 531,738 555,615 580,685
561,145 585,932 611,580
Other Assets
Deposit 6,800 6,800 6,800
TOTAL ASSETS 624,169 634,901 646,492
Owners' Equity
Capital 66,431 66,431 66,431
Accumulated Profit 84,602 173,653 263,786
151,033 240,084 330,217
Long Term Liabilities
Loan Balance 472,129 393,440 314,752
Hire-Purchase Balance
472,129 393,440 314,752
Current Liabilities
Accounts Payable 1,008 1,376 1,523
TOTAL EQUITY &

624,169 634,901 646,492
LIABILITIES

Introduction Plan

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Introduction Plan

Uploaded by

Copyright:

Available Formats

LITTLE CAKES & CAFE THE ORIGIN OF CUPCAKES

1.0 INTRODUCTION OF THE

COPYRIGHT OF LITTLE CAKES & CAFE Page 1

1.1 COMPANY LOGO

LITTLE CAKES & CAFE

COPYRIGHT OF LITTLE CAKES & CAFE Page 2

THE ORIGIN OF CUPCAKES

COPYRIGHT OF LITTLE CAKES & CAFE Page 3

1.2 NAME OF THE COMPANY

Little Cakes & Cafe

1.3 NATURE OF THE BUSINESS

Provide unique combination of flavours and beautiful decoration of cupcakes at value

1.4 INDUSTRY PROFILE

satisfaction as it grows into a valuable investment or market.

COPYRIGHT OF LITTLE CAKES & CAFE Page 4

1.5 LOCATION OF THE BUSINESS

nearby to the I-City.

1.6 DATE OF BUSINESS COMMENCEMENT

08th August 2010

1.7 FACTORS IN SELECTING THE PROPOSED BUSINESS

knowledge and skills gained from our studies.

COPYRIGHT OF LITTLE CAKES & CAFE Page 5

1.8 FUTURE PROSPECTS OF THE BUSINESS

time become the top rated cupcakes shop every year.

COPYRIGHT OF LITTLE CAKES & CAFE Page 6

COPYRIGHT OF LITTLE CAKES & CAFE Page 7

Maybank Berhad for the amount RM 562 000.00.

COPYRIGHT OF LITTLE CAKES & CAFE Page 8

3.0 COMPANY BACKGROUND

NAME OF THE BUSINESS : Little Cakes & Cafe

COPYRIGHT OF LITTLE CAKES & CAFE Page 9

BUSINESS ADDRESS : No. 3, Jln Plumbum S7/7, Seksyen 7,

40000 Shah Alam, Selangor

TELEPHONE NUMBER : 03-5557223

FORM OF BUSINESS : Private Limited Company

MAIN ACTIVITIES : Food and Beverage

DATE OF REGISTRATION : 07th July 2010

DATE OF COMMENCEMENT : 08th August 2010

INITIAL CAPITAL : RM 66 000.00

NAME OF THE BANK : Maybank Berhad

BANK ACCOUNT NUMBER : 88-082656597-1

COPYRIGHT OF LITTLE CAKES & CAFE Page 10

4.0 BACKGROUND OF OWNER

COPYRIGHT OF LITTLE CAKES & CAFE Page 11

Name : Siti Safiah bt Azaan

I/C No. : 820508-56-5458

Permanent Address : No. 30 Jln SM 9, Sunway Batu Caves,

Correspondence : No. 23, Taman Bunga Raya, Seksyen 2,

Address 40450 Shah Alam, Selangor Darul Ehsan

Phone No. : 012-6474247

Date of Birth : 8th May 1982

Marital Status : Single

Academic Qualification : 1) Diploma in Accounting

2) Bachelor Degree in Business

Courses Attended : Business, Entrepreneurship Course

Skills : 1) Event Management

2) Speak fluently in both English and Malay

Experiences : 4 years working experience in Corporate

COPYRIGHT OF LITTLE CAKES & CAFE Page 12

Previous Business : General Executive at MapletreeLog (M)

Holdings Sdn. Bhd (6 years)

Present Occupation : General Manager at Little Cakes & Cafe