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The Crab Enterprise

ACKNOWLEDGEMENT
Assalamualaikum w.b.t.

Firstly, we would like to praise to Allah Almighty for His blessing, we have completed the business plan for our company, The Crab Enterprise. We are thankful to Allah because we have given the patient, motivation, strength, inspiration and ability in completing this business plan after all of the challenges that we have gone through.

Besides that, a lot of thanks to our lecturer of Fundamentals of Entrepreneurship (ETR300) that is Miss Nani Ilyana Shafie for her helps, support and also idea towards us until we can producing a complete business plan. We also realized that all of her advice is to ensure that we can be a good business planner.

As important part of our life and a person who are always be our side, we would like to wish a million of thanks to our parents because of their supports in terms of spirit and finance to make sure that we can do the best for this business plan.

Next, thanks to our group members for their cooperation and also their commitment in preparing this business plan. Our idea and also all of the hard work have yielded positive results. Last but not least, thanks for our classmate which is group EH110 B1/B2. Hopefully, our effort will get high reward that belongs to us.

Amin.

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EXECUTIVE SUMMARY
The Crab Enterprise is a partnership company which is stated under Partnership Act 196 and totally holds by the Muslim. The formation of this company is starting from five members that have a good self commitment and dedication to form a company. Our business commencement is on 3 rd

January 2012. With the RM 122,040 as a starting capital, we registered our company on 6th January 2012. Besides that, we also apply loan of RM 60,000.00 and RM 35, 000 for hire-purchase for our lorry from CIMB Bank to support our business capital.

The main business of The Crab Enterprise is to supply the soft skin crabs to the customer especially in the Kuala Kurau district. Our business products which are crabs are based on Islamic practice and we are always makes sure that our crabs are Halal. We choose palm crabs as our main crabs that we want to make it soft because of the quality, easy to take care of it and also because palm crabs is a customer choices. Our company is located at KM 86.3, Jalan Pipit, Kuala Gula, Peti Surat 1079, 89028, Perak Darul Ridzuan. We choose this location because it is strategic and closer with the potential customers.

In administration plan, we have decided our vision and mission of our company. The vision of The Crab Enterprise is to expand the business worldwide by supplying the customers with the finest grade of crabs. In the other hand, The Crab Enterprises mission is to become the leading provider of soft shell crabs to the industry. This will be accomplished by providing quality crabs at fair prices while exceeding customers expectations. To ensure that our vision and mission become realistic, we have structured the organization chart of our company. The general manager will lead the

company with the four more managers which are administrative manager, marketing manager, operational manager and financial manager. supporting staff, we have one clerk and six general workers. 2|Page For the

The Crab Enterprise

Besides that, in marketing plan we have decided the target market for our business which is the restaurants and Kuala Kurau people. The market size of crabs sales in the Kuala Kurau district is RM5, 556, 600 per year.

After we entering the market, we get 10% of the market size which is RM555, 660 for the first year. To make sure that we get the 10% of the portion, we do the market strategy. For the products and services strategy, we are supply the high quality of the soft skin crabs and our customer has a freedom to choose which crabs that they want on their own.. In the same time, we have promotion strategy which is business cards, companys signboard, banners and flyers.

On the other hand, the operational plan we have RM27, 238.00 to purchase the materials. The materials that we purchase every month are hard shell palm crabs, small fishes, and plastic bags. We have the ranch that located the crabs pool with the capacity up to 290 crabs. The reason why we provide the big pool is because in we have to produce 1, 653.75 kg/month. We also have six general workers who are responsible to take care of the pool at night to prevent it from being stolen by outsiders.

Besides that, the crabs that in a process to become a soft skin crabs must always be watched because if they have changes to a soft skin crab, they must be quickly being transfer to storage area. Fail to do so will result that soft skin to become hard skin crabs again. Our business hour operates from 10 a.m. to 5 p.m. daily and we are close on Sunday, where as we have shifts operation hours which are 7am until 7pm and it is continue 7pm until 7am for the next day.

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For the financial plan, the implementation cost using the loan is RM60, 000. The administration expenditure is RM36, 963, the marketing expenditure is RM 5,745 and the operational expenditure is RM113, 610. Besides that, the sales projection for the first year is RM555, 660 and the purchase projection for the first year is RM244, 781.

From the cash flow, we can see that the profit will increase year by year. Our research also found that, we will face loss for the first year but it will become profitable in the second year, third year and above. We are sure that our business will give high profit in long term period.

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LETTER OF SUBMISSION Students, Faculty of Electrical Engineering, University of Technology MARA, Permatang Pauh, Pulau Pinang.

Miss Nani Ilyana Binti Shafie, Lecture ETR 300, University of Technology MARA, Permatang Pauh, Pulau Pinang. 2011 Dear Miss, SUBMISSIONS OF BUSNESS PLAN

6th

April

We, as student of Faculty of Electrical Engineering of UiTM Pulau Pinang would like to submit our business plan for the subject of Fundamentals of Entrepreneurship (ETR 300) as a requirement of Diploma in Electrical Engineering. 2. We have done our market research and found that this business strategy that we have taken will have a bright future. 3. We hope that this business plan will satisfy the requirements that have been set by the faculty for this project.

Yours faithfully,

.............................. (Muhammad Safwan Bin Omar) General Manager The Crab Enterprise

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The Crab Enterprise

The Crab Enteprise, KM 86.3, Jalan Pipit, Kuala Gula, Peti Surat 1097, 89038 , Perak 5853888

Fax: 05-

General Manager CIMB Bank (M) Bhd 10th Floor Bangunan CIMB, Jalan Semantan, Damansara Heights, 50490 Kuala Lumpur, Malaysia. Tel: 03-20848356 Date: 3 February 2012. Dear Sir, BUSINESS LOAN APPLICATION I, Muhammad Safwan b Omar as the General Manager of The Crab Enterprise, wish to apply for a business loan for our company. For your information, we are new firm that wants to develop our business. We plan to open the new firm that supplies soft skin crab around the state of Kuala Kurau and will try to expand to other areas such as Pulau Pinang. Our business is located at Kuala Kurau and all the facilities needed to operate our business can be found there. This business has the potential to gain profit because there are several competitions only. However, we do not have a sufficient amount of capital to run the business. This business needs a capital of RM217, 040.00. As for now, we only have an amount of RM 122, 040.00. Therefore, we would like to apply for a loan from your bank for an amount of RM 60,000.00 and RM 35, 000.00 for hire-purchase for our lorry. We would be much obliged if you could provide a business loan. We look forward to hearing from you soon. I can be contacted at 013-4847305 if you wish to discuss any of the above points. We are ready to furnish you with additional materials with regards to this matter. Thank you. Yours faithfully,
rd

(Muhammad Safwan Bin Omar) General Manager The Crab Enterprise

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The Crab Enterprise

CHAPTER 1

INTRODUCTION
1.1 INTRODUCTION TO THE BUSINESS

The Crab Enterprise is a partnership company which totally holds by the Muslim. The formation of this company is starting from five members that have a good self commitment and dedication to form a company. The findings of one of our partners to reap also encouraged us to carry on the business as aware of the return of crabs that we might get later. The main business of The Crab Enterprise is to supply soft skin crabs to the restaurant, market and people in Kuala Kurau. This is because crab without a shell is a little foreign in Malaysia, but in Thailand and Vietnam, it becomes

a popular dish in restaurants and traditional farming. Soft crab is so unique because it can be eaten the whole crab including the crab tongs without removing the entire contents of the skin. Our business products which are crabs are based on Islamic practice and we are always making sure that our crabs are Halal. We are sell only one type of the soft crab which is palm crab. Palm crab a large crab (Birgus latro) of the islands of the South Pacific that live in burrows and feeds mainly on coconuts. It is prefer to make it soft because it is higher in a market price and easy to make it soft. In order for a hard crab to grow, it must periodically shed its old shell (molt) in order to grow a larger shell. Following a successful molt, the crab's new shell is extremely soft. After several days in the water, the new shell fully hardens and is about one-third larger in size. Crabs must be checked many times a day so that they can be removed from the water immediately after moulting so that they are not eaten by other crabs and so their shells will not harden. Besides that, the reasons why we chose this type of crab is because the quality and the size can be higher and bigger than feral crabs.

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1.2

PURPOSE OF THE BUSINESS PLAN

The entire business planning process forces the entrepreneur to analyze all aspects of the venture, market, want people needs and want. In addition, business plan are made to prepare an effective strategy to deal with the uncertainty that arise. Thus, a business plan may help an entrepreneur avoid a project doomed to failure. It is important that entrepreneur prepare their own business plan, especially as a partnership company. If an entrepreneurial team is involved, then all of the key members should be a part of that writing plan. This means that, it is important to the lead entrepreneur understand the contribution of each team member. If consultant are sought to help prepare a business plan, the entrepreneur must remain the driving force behind the plan. Seeking the advice and assistance of out outside professionals is always wise, but entrepreneur needs to understand every aspects of the business plan, since it is they who will operate that business on their own, together with the other partnership. Next, by providing this business plan earlier, it can help us overcome the problems that will occur in the future. The flow in and flow out of the money are derived from a business plan for both the entrepreneur and the financial sources that read it and evaluate the venture. Other benefits are to evaluate the growth potential of our business at the highest level. The good publicity can make our business to be known by people, which is automatically can make our company to get the market and regular customer. Besides that, purpose for doing this business plan is to make sure that our business can achieve the goals and mission at the right time and it was flow and be done successfully as we plan. Last but not least, of course this business plan is a guidance to manage our business smoothly and make it real.

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1.3

BACKGROUND OF BUSINESS
: : The Crab Enterprise KM 86.3, Jalan Pipit, Kuala Gula, Peti surat 1097, 89038 , Perak Darul Ridzuan.

Name of the Business Business Address

E-Mail Address Telephone Number Facsimile Number Form of Business Main Activities

: : : : :

thecrab.ent_kk@yahoo.com 05-5853885 05-5853888 Partnership Softening crab shell and supplying soft shell crab

Date of Business Commencement Date of Business Registration Registration Number Name of Bank Bank Account Number

: : : : :

3rd January 2012 6th January 2012 In Progress HSBC Bank Malaysia Berhad 07491000121433

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1.4

BACKGROUND OF PARTNERS

1.4.1

General Manager

Name of partner Identity card number Permanent address

: : :

Muhammad Safwan b Omar 840305-02-5069 No 8, Lorong 13, Taman Haji Ahmad Jamil,13300,Tasek Gelugor, Seberang Perai Utara, Pulau Pinang.

E-mail address Telephone number Date of birth Age Marital status Academic qualifications

: : : : : :

safwanomar@yahoo.com 013-4847305 5th March 1984 27 years old. Single Diploma in Business Studies, UiTM (2002-2005) Bachelor in Business Administration, UiTM (2005-2007)

Courses attended

MEDEC Entrepreneurship Training Course MARA Business Communication Course

Skills Experiences Present occupation

: : :

Good in communication skills. Administration Manager at Bs Caf General Manager at The Crab Enterprise.

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1.4.2

Administrative Manager

Name of partner Identity card number Permanent address

: : :

Nur Aqila Dayana binti Osman 871121-14-5706 No 22, Jalan Hijau 3/6, Green Valley Park, Bandar Tasik Puteri, 48020,Rawang, Selangor.

E-mail address Telephone number Date of birth Age Marital status Academic qualifications Courses attended Skills Experiences

: : : : : : : : :

aliqadayana@yahoo.com 013-4479795 21st November 1987 24 years old. Single Diploma in Office Management, UiTM (2005 2008) MARA Agriculture Course, Peladang Crab Course Computer and management skill Practical trainee at Jabatan Perkhidmatan Haiwan dan Perusahaan Ternak Teluk Intan

Present occupation

Administration Manager at The Crab Enterprise

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1.4.3

Marketing Manager

Name of partner Identity card number Permanent address

: : :

Mohd Rosli Bin Abdul Razak 910415-02-5537 No.18, Jalan Bukit Canggang, 28/9, Taman Alam Megah, 40400 Shah Alam, Selangor Darul Ehsan.

E-mail address Telephone number Date of birth Age Marital status Academic qualifications

: : : : : :

dzulikram@yahoo.com 017-7736069 29th May 1982 29 Years Old Single Bachelor in Business Administration, UKM (2004 2006) Diploma In Business Studies,UiTM (2000 2003)

Courses attended Skills Experiences

: : :

Les' Copaque Production Training Have good skills in customer service. Marketing Executive in Scope Production. Marketing Manager in Hilton Hotel, Subang

Present occupation

Marketing Manager in The Crab Enterprise.

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1.4.4

Operation Manager

Name of partner Identity card number Permanent address

: : :

Muhammad Afiq b Abdul Rahman 850430-01-5441 No. 54, FELDA Serting Hilir3, 72120Bandar Sri Jempol, Negeri Sembilan.

E-mail address Telephone number Date of birth Age Marital status Academic qualifications

: : : : : :

afiqrahman@yahoo.com 012-6578767 30th April 1985 26 years old. Single. Diploma in Electrical Engineering (Electronic), UiTM (2002-2005)

Courses attended Skills Experiences Present occupation

: : : :

Entrepreneurship course Computer and management skill Operation Manager at MEGA SDN. BHD Operation Manager at The Crab Enterprise.

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1.4.5

Financial Manager

Name of partner Identity card number Permanent address

: : :

Nuraisyahida Bt. Mohd Shabudin 870510-02-5156 JKR 4383, Insp Quarters, Taman Pahlawan 31150 Ulu Kinta, Perak.

E-mail address Telephone number Date of birth Age Marital status Academic qualifications

: : : : : :

syahida@yahoo.com 017-4567890 10th May 1987 24 Years Old Single Diploma in Office Management, UiTM (2005 2008)

Courses attended Skills

: :

Firefly Airlines Company Training Able to make electrical wiring for household and communication skills Fluent in Malay, English, Mandarin, Japanese, and able to speak in Spanish and Arabic

Experiences Present occupation

: :

Working as Cabin Attendant for six months Financial Manager in The Crab Enterprise

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1.5

LOCATION OF THE BUSINESS

Business Location Site Plan Our business will be located at Jalan Pipit, Kuala Gula,Perak. This site is located between the Jalan Kuala Kerian and near to the home stay. Our business location is also just nearby the Pekan Kuala Kurau. The reason we are choosing this location because: 1. 2. 3. Near to the road easier for customers to come to our business site Strategic location near to the Kuala Kurau river Good facilities developer provide enough infrastructures and facilities for us to run the business

1.5.1

Office Location The Crab Enteprise, KM 86.3, Jalan Pipit, Kuala Gula, Peti surat 1097, 89038 , Perak.

Figure 1.5.1 : Map of official office The Crab Enterprise

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CHAPTER 2

ORGANIZATION / ADMINISTRATION PLAN

2.1

INTRODUCTION TO THE ORGANIZATIONAL PLAN In an organization, the administration is important to determine the

stabilization and the movement of the company and the business. The business will success if the company has a systematic and good arrangement of the system. In relation, goals and strategies of the company must be fully accomplished, to ensure that the business is running successfully. The office of The Crab Enterprise located at Kuala Kurau. It is the same location with ranch. The reason why we choose this location is because it is the strategic place. It has the complete facilities such as the building for an office, the large space of land for the cage, complete water and electricity facilities, river and the mangroves forest village environment for the crab to grow in a good condition. It will also encourage and motivate our workers to work because of the peace environment of the ranch. In the administration department, the General Manager leads the administration process and will be assisted by the clerk. Every officer must perform their duties and responsibilities that have been entrusted to them. In undertaking their duties, the management must continuously analyze and accessing the needs of their customers. However the most important is the quality of our work to ensure that our customer will be fully satisfied as our top priority is the customers satisfaction at the peak level in our business.

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2.1.1 Vision To expand the business worldwide by supplying the customers with the finest grade of crabs

2.1.2 Mission The Crab Enterprises mission is to become the leading provider of soft shell crabs to the industry. This will be accomplished by providing quality crabs at fair prices while exceeding customers expectations.

2.1.3 Objectives Short-term Objectives 1. Maximize the services to our customers satisfaction. 2. Minimize the cost of production of the company. Long-term Objectives 1. Build the trust to the customers about the product of our business. 2. Reach the point of sustainable profitability.

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2.1.4 Logo and Descriptions

Figure 2.1.4 Logo of The Crab Enterprise

Symbols

Meanings

The circle shape

The business world that we venture.

The crab picture

The products of our business.

The fishes

The symbol of environmentally friendly.

Colours

Meanings The symbol of our determination cant be changed.

Black

Red

The love that we give to the crabs and the customers.

White

The symbol of pureness in our business.

Orange

The colour of joy in our business.

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2.2

ORGANIZATION CHART

General Manager Muhammad Safwan

Administration Manager Nur Aqila Dayana

Marketing Manager Muhammad Dzul Ikram

Operation Manager Muhammad Afiq

Financial Manager Nuraisyahida

Clerk

6 General Worker

Figure 2.2 : Organization chart of The Crab Enterprise

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2.3

ADMINISTRATION PERSONNEL 2.3.1 List of Administration Personnel Table 2.3.1 POSITION General Manager Administrative Manager Marketing Manager Operation Manager Financial Manager Clerk TOTAL Number of Administration Personnel NO. OF PERSONNELS 1 1 1 1 1 1 6

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2.3.2 Schedule of Tasks and Responsibilities Table 2.3.2 : Schedule of Tasks and Responsibilities POSITION GENERAL MANAGER TASKS AND RESPONSIBILITIES To plan, implement and control overall management of the business. To be liable for the performance of business. To make sure the organisation achieves their target. To make sure the workers in a good condition. The person who can make big changes to the company. ADMINISTRATIVE MANAGER To oversee the administration staff. To provide administration decision-

making, support and leadership. Responsible for training and evaluating his/her staff. To ensure that his department is fully staffed and all personnels attendance is within acceptable limits. Developing price strategies upon

balancing customer satisfaction and firm objectives. MARKETING MANAGER Indentifying, developing, evaluating

marketing strategic plans, based on knowledge of organizational objectives, cost and markup factors and market characteristics. To advertise the products of the 21 | P a g e

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companies and make them famous in the marketing using different

techniques.

To enhance the sales of the areas which are assigned to the manager.

To run the day-to-day operations of an organisation or business. To handle problems quickly and

efficiently. OPERATION MANAGER To provide a work environment that engenders positive energy, creativity and teamwork among employees. To set rules and procedures for

employees to follow. Representatives at committee meetings and functions. To make effective decisions that will not only help the company run smoothly but also serve to prevent difficult situations in the future.

FINANCIAL MANAGER

To estimate the capital requirements. To determine the capital composition. To allocate funds into profitable

ventures so that there is safety on investment and regular returns is

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possible. To decide the net profits. To make decisions with regards to cash management. To exercise control over finances.

To answer visitors inquiries about a company and its products or services, dorecting visitors to their destinations,

CLERK

sorting and handling out mail and answering incoming calls on multi-line telephones. Organize maintenance and check-ups on all office equipments.

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2.3.3 Schedule of Remuneration Table 2.3.3 : Schedule of Remuneration

POSITION

NO.

MONTHLY SALARY

EPF CONTRIBUTIO N

SOCSO (Refer to SOCSO Table) (RM)

TOTAL AMOUNT

(RM)

(12%) (RM)

(RM)

General Manager Administrative Manager Marketing Manager Operation Manager Financial Manager Clerk

2900.00

348.00

51.65

3,299.65

2500.00

300.00

42.85

2,842.85

2500.00

300.00

42.85

2,842.85

2500.00

300.00

42.85

2,842.85

2500.00

300.00

42.85

2,842.85

1000.00 TOTAL

120.00

16.65

1,136.65 15,807.70

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2.3.4 Compensation and Benefits to Workers SALARY Salary will be given to each employers and employees as written an agreed in contract depends on their posts and qualifications. However, the salary can be increased depends on the profits earned by the company. Pay-day will be fixed, that is at the end of the month. EPF and SOCSO Principal employer have to pay monthly contribution to every employee that qualified by following the rate that was set under AKTA. Total contributions which need paid should refer to SOCSO Contribution Schedule . MATERNITY LEAVE, PATERNITY LEAVE Women with not more than 5 surviving children are entitled for 60 days maternity leave subject to certain conditions. Paternity leave is given up to 5 days for male employee with new born baby and not more than 5 surviving children. BONUS Bonus will be given depends on the workers performance and the sales profit in the financial profit. ANNUAL LEAVE Each employee is entitled to have annual leave not more than 25 days per year. However, they must submit notices at least a week before taking leave. The maximum sick leave depends on their injury seriousness, with a medical certificate (M.C.) approved by doctor.

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WORKING DAYS Seven days per week with shift change as these crabs need 24/7 surveillance.

MEDICAL ALLOWANCE Each employee entitled to get RM 50/month. 9 employees x RM 50 x 12 months = RM 5400

2.4

LIST OF OFFICE EQUIPMENTS Table 2.4 : List of office equipments ITEM QUANTITY PRICE/UNIT (RM) TOTAL AMOUNT (RM) Computers 3 units 1 unit 2,000.00 430.00 6,000.00 430.00

Fax machine, photocopier and printer Fir extinguisher First aid kit Telephone White board

2 units 1 unit 2 units 3 units TOTAL

250.00 100.00 100.00 50.00

500.00 100.00 200.00 150.00 7,380.00

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2.5

LIST OF OFFICE FURNITURE & FITTINGS Table 2.5 : List of office equipments ITEM QUANTITY PRICE/UNIT (RM) TOTAL AMOUNT (RM)

Office Desk Office Chair Meeting Table and Chairs Sofa Set Ceiling Fans Lamp File Cabinet Notice Board

3 units 3 units 1 set

150.00 50.00 1,500.00

2,500.00 1,200.00 1,500.00

1 set 3 3 1 1 TOTAL

500.00 100.00 50.00 350.00 100.00

500.00 300.00 150.00 350.00 100.00 3,500.00

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2.6

OFFICE LAYOUT

Figure 2.6:

Office Layout of The Crab Enterprise

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2.7

ADMINISTRATION BUDGET

ITEM

FIXED ASSETS (RM)

MONTHLY EXPENSES (RM)

OTHER EXPENSES (RM)

Office Furniture & Fittings Office Equipments Salaries (EPF & SOCSO) Rent Utilities Office Supplies Deposit (Rent , Utilities) Business Registration Business Licence/Permit Professional Fees Medical TOTAL

3,500.00 7,380.00 15,807.70 800.00 500.00 150.00 2,600.00 75.00 250.00 500.00 5,400.00 10,880.00 17,257.70 8,825.00

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CHAPTER 3

MARKETING PLAN
3.1 INTRODUCTION TO MARKETING PLAN

Marketing plan is a written statement of marketing objectives and activities that is used to guide and monitor an organizations performance for a period of one year or less. Marketing plan is tactical (short term) covers up to two years. It is vital and will affect the overall performance of business activities in business plan. On top, a strategic marketing plan will successfully meet the long - term goals and objectives of a business.

In sequence to ensure the business is acknowledged and establish, product and services produced must fulfil and satisfy the consumers needs and desires, as well as bring profit to the business. Pleasing in products and services will make the consumers feel that the company is trustworthy.

We have look from many aspects before doing this business. After make a survey for provisioning and do the research, we have chose the area and we confident that our business can get great publicity based on the people who living at the area.

The motive of our business is to profit from selling our product and to lessen the cost of manufacturer also the business operation. The key word of our business is the freshness of soft skin crabs that we feel it does not have in any supermarkets.

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3.1.1

Marketing Objectives

The Crab Enterprise is a company that runs a business based on soft skin crabs. We believe that our product could attract customers interest. This is because our company will be selling high quality products direct on customers.

Most major thing for entrepreneur is to manage business and this must be done efficiently and also effectively to manage business can run smoothing and successfully towards the business plan. Therefore, in order to achieve our target, our marketing department has state several objectives. This is the most important essence in business because it will affect the business opportunities to gain profit and success. The objectives of marketing have been listed below:

To gain the maximum profits from the business Sell good products and to make sure all the products works well To know the percentage of the market share and the number of competitors Get opportunity in market demand To become a famous supplier of crab To make sure all the promotion strategies is done accurately, efficiently and attracting the customers To provide product direct to customer

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3.1.2

Marketing Department Organization Chart

On marketing side, we just have one officer who responsible to market the crab product. This is because our company is still new and not the big scale company.

GENERAL MANAGER Muhammad Safwan

MARKETING MANAGER Muhammad Dzul Ikram

Figure 3.1.2: Marketing Department Organization Chart for The Crab Enterprise

3.1.3

Marketing Department Personnel

In this marketing plan, we include the marketing department personnel for our business which is to run The Crab Enterprise marketing plan and execution. The nature of our business is Partnership and our business is not in large scale and complex. Therefore, we only need one marketing manager to do all marketing activities.

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3.2

INTRODUCTION TO PRODUCT

Scylla serrata (often called mud crab, mangrove crab, or palm crab) is an economically important crab species found in Asia. In their most common form, the shell colour varies from a deep, mottled green to very dark brown. Generally cooked with their shells on, when they moult their shells, they can be served as a seafood delicacy, one of many types of soft shell crab. Some consider them to be among the tastiest of crab species and they have a huge demand in South Asian countries where they are often bought alive in the markets. These crabs can grow up to 500 grams in size.

Table 3.2 Name of Product

List of Products and Price Size M (120 g 150 g) L (180 g 200 g) XL (350 g 500 g) Price/kg (RM)

Soft skin crab

25.00 28.00 32.00

Therefore, the average price/kg for soft skin crabs = RM 28.30

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3.3

TARGET MARKET

A target market is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise. A well-defined target market is the first element to a marketing strategy. The target market and the marketing mix variables of product, place(distribution), promotion and price are the two elements of a marketing mix strategy that determine the success of a product in the marketplace.

As one of the crab company supplier, we produce products and serve our customers with best regards by trying our best to fulfil their needs. We mainly target restaurants and individuals to be our targeted customers.

Our target market is based on few convincing factors. For example: 1. Geographic: About 50 km west of Taiping town and 80 km south of Penang. These two cities are known as developing city which will contributed the most for our target market. Fishing Village. A strategic location for our operation to take place as it has nature environment.

2. or

Demographic: Gender : Male and female Occupation : Restaurant owner, housewives and tourists from either local

overseas. This will help to expand our company by supplying our product to them. Education : All level Income level : RM 1000 and above Race : Multiracial.

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3.

Psychographic: Status : Single, married and divorce. Preferences : Something new and different from normal processing crabs Lifestyle : Loves seafood Sensitivity to price : Moderate. Motives of purchase : For dishes, supplier, any occasional events such as Chinese New

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3.4

MARKET SIZE

Market size is a total purchase of sales of goods and services in target. It also refers to the total potential of the target market. It includes purchases of competitors product within the same market. Market size is normally started in terms of unit in Ringgit Malaysia (RM). It can be calculated daily, weekly, monthly, and yearly.

In the targeting the market size, The Crab Enterprise has use services and skills as the method in targeting market size. We focused our market to the restaurants, butchers, public people and also the new entrepreneurs in Kuala Kurau and also Penang. The population in Kuala Kurau district is 29 500 people and the crabs entrepreneurs in Kuala Kurau and Seberang Jaya are 4 companies.

We have identified, there are 20 restaurants at Kuala Kurau and those areas which are near to Kuala Kurau (10 kilometers radius).

No. of restaurants Restaurants 20

Kg /restaurants 10

Days

RM/week/ Restaurant

Total

28.00

39200

Estimated total spending per year for 20 restaurants on soft skin crabs = 39200/week x 4 weeks x 12 months = RM 1,881,600.00

Population at Kuala Kurau is estimated 29,488 people according to Pusat Internet Desa (PID), Kuala Kurau, under Kementerian Penerangan, Komunikasi dan Kebudayaan on 2009.

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Total population:

Percentage (%) Senior Citizen Adult Teenagers Children 5 45 35 15

Population

Total 1475 13275

29488

10325 4425

Therefore, we are going to exclude children for the targeted customers, as they dont have the purchasing power.

Targeted customers Senior citizen Adult Teenagers 1475 13275 10325

Percentage (%)

Total targeted customers

5 30 2

74 3982.5 @ 3983 206.5 @ 207

Total spending per month: Total targeted customers Senior citizen Adult Teenagers 74 3983 207 Amount (kg/month) 1 3 1 Amount (RM/kg) 25.00 25.00 25.00 Total (RM/month) 1850.00 298725.00 5175.00

Therefore, total spend per year for individuals market on buying soft skin crabs: Senior citizens RM 1,850/month x 12 Adult Teenagers RM 5,175/month x 12

= RM 22,200

RM 298,725/month x 12 = RM 3,584,700 = RM 68,100

___________________________________________________ Total = RM 3,675,000

Total market size of soft skin crab at Kuala Kurau = 3,675,000.00 + 1, 881,600.00 = RM 5,556,600.00

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3.5

COMPETITORS ANALYSIS Analysis of Competitors Strengths and Weaknesses Strengths Weaknesses

3.5.1

Competitors MAJU CRAB JAYA SDN. BHD

Senior crabs company


that produce crab in large quantity every month

The price for crab per


kilo quite expensive

KETAM ASLI TRADING

Monopolies the
highest market share percentage in Kuala Kangsar.

Do not have enough


crab to supply.

CHILL CRAB ENTERPRISE

Strategic location.

Delay in their sales


transactions (sales order).

Customers trust in
their services

KETAM NIPAH SDN.BHD.

have its own building,


so that their management are good .

too many business


such as frozen food based on crab and also rearing crab.

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3.5.2

Analysis of The Crab Enterprise Strengths and Weaknesses

Strengths

Weaknesses

Crabs can be selected from the cage by the customers themselves

As a new company, we have a limited number of cages so that has limited production capability.

Produce good quality crabs because our crabs are habitat bred in a natural

Our company operation is hidden from the people

Affordable for people to buy our soft crab

We are new company and do not be a permanent supplier for any big franchise or restaurant

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3.6

MARKET SHARE

3.6.1 Enterprise

Estimation of Market Share before the entry of The Crab

Table 3.6.1:

Market Share before the entry of The Crab Enterprise Percentage of Market Shares (%) Total Market Share (RM) 1,778,112.00

Competitors

MAJU CRAB JAYA SDN. BHD KETAM ASLI TRADING CHILL CRAB ENTERPRISE KETAM NIPAH SDN.BHD TOTAL

32

30 20

1,666,980.00 1,111,320.00

18

1,000,188.00

100

5,556,600.00

Market Share before the entry of The Crab Enterprise

18 % 20 % 30 %

MAJU CRAB JAYA SDN. BHD

32 %

KETAM ASLI TRADING

CHILL CRAB ENTERPRISE KETAM NIPAH SDN.BHD

Figure3.6.1:

Pie chart of Market Share before the entry of The Crab Enterprise

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3.6.2

Adjusted of Market Share after the entry of The Crab Enterprise

Table 3.6.2:

Market Share after the entry of The Crab Enterprise Percentage of Market Shares (%) Total Market Share (RM) 1,611,414.00

Competitors

MAJU CRAB JAYA SDN. BHD KETAM ASLI TRADING CHILL CRAB ENTERPRISE KETAM NIPAH SDN.BHD THE CRAB ENTERPRISE TOTAL

29

27 18

1,500,282.00 1,000,188.00

16

889,056.00

10 100

555,660.00 5,556,600.00

Market Share after the entry of The Crab Enterprise

10 % 16 %

29 %

MAJU CRAB JAYA SDN. BHD KETAM ASLI TRADING CHILL CRAB ENTERPRISE KETAM NIPAH SDN.BHD THE CRAB ENTERPRISE

18 %

27 %

Figure 3.6.2: Pie Chart of Market Share after the entry of The Crab Enterprise

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3.7

SALES FORECAST Sales Forecast for The Crab Enterprise Year Month Sales Collection (RM) 2012 January *February March April May June July August September **October November ***December TOTAL 2013 2014 Increased by 10% Increased by 15% 65,200.00 46,491.00 50,700.00 50,514.00 45,200.00 46,791.00 50,514.00 48,650.00 58,300.00 38,000.00 55,300.00 555,660.00 611,226.00 702,909.90

*Chinese New Year **Eid Celebration ***Schools Holidays

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3.8

MARKETING STRATEGIES

In a typical business, the main objective is to get a maximum profit. So in order to achieve that objective, our company is planned some strategies that important for our company. We hope by doing the marketing strategy plan we can attract as many customers as we can in order to achieve maximum profit.

The strategies include product and services strategy, pricing strategy, distribution strategy and promotion strategy.

3.8.1

Product/Service Strategy

Even though our business is still new to the public, we guarantee our products are in great quality. We ensure that the crabs that we rearing are healthy and free from any disease. The crabs are given the safe and nutrition food. For example, we will make sure that the food and water supply is free from harmful chemical that can damage the quality of the crabs. 3.8.2 Place/Distribution Strategy

Our location is indeed a strategic place. The intermediaries involve reseller (seafood restaurants) and retailers. On the other hand, The Crab Enterprise is taking chances regarding distribution channel by undertaking direct marketing channel which eliminates all the intermediates. Therefore, the business can deliver the crabs directly to the buyers.

The Crab Enterprise

Customers

The Crab Enterprise

Reseller/Retailers (Restaurants)

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3.8.3

Pricing Strategy

Pricing is also an important element that we have to take serious precautions before entering the market. The price must be reasonable and affordable for our target customers and suppliers. So, the customer will not have any doubt to buy our product in pricing factor or aspect.

Before we decide the prices on our product, we have to consider first on many aspect and criteria. The Crab Enterprise will follow competitors based pricing approached. The demand for soft skin crabs are found to be so high that this strategy will successfully captured a certain market share without compromising the price. However, we have intention of keeping our price stable as long as we can. Survey the market price of our competitors and then decide that our products price is not expensive or cheaper than our competitors price. 3.8.4 Promotion Strategy

As a new company, we need to do a lot of promotion in order to create awareness our products and services to the public. By doing this, we hope many people and companies know about our existence and are our loyal customer. Our company has arranged several promotion strategies to

accomplish this objective. Companys Signboard Signboard of The Crab Enterprise will be showed in front of our premise. The cost for The Crab Enterprises signboard = RM 1800.00

Banners We are also will be providing several banners at the main roads on the way to our premise. It helps to promote our business to the customers. The cost for The Crab Enterprises banner for a year is RM100 x 4 banners = RM400.00

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Business Card We have our company business card to provide better relationship with our customer. They can easily contact us for advice and make an appointment and also to make an order. Refer Figure 3.8.4.2.

The cost for business cards = RM 25 (100 pieces) x 5 person = RM 125.00

Flyers We will distribute flyers to customers from time to time where they will get information about our companys background and our products. Total cost for 100 flyers per month is RM 20.00. Refer Figure 3.8.4.3.

Total cost = RM 0.20 x 100 pieces = RM 20.

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COMPANYS SIGNBOARD

The Crab Enterprise

Figure 3.8.4.1 The Crab Enterprise Signboard

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BUSINESS CARDS

Figure 3.8.4.2

The Crab Enterprise Business Card

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BUSINESS CARDS

Figure 3.8.4.2

The Crab Enterprise Business Card

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FLYER (OUTSIDE)

Figure 3.8.4.3

The Crab Enterprise Flyer

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FLYER (INSIDE)

Figure 3.8.4.3

The Crab Enterprise Flyer

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3.9 ITEM

MARKETING BUDGET FIXED ASSETS (RM) MONTHLY EXPENSES (RM) OTHER EXPENSES (RM)

Signboard Travelling Promotion Grand Opening TOTAL

1800.00 400.00 20.00 525.00 3000.00 1800.00 420.00 3525.00

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CHAPTER 4

OPERATION PLAN

4.1

INTRODUCTION TO OPERATION PLAN


Operation planning is one of the activities to plan and utilize available resources to offers services depends on customers demand. The resources must be used effectively. The objectives for operation planning are to produce goods and services that fulfill the customers need and enable to minimize cost of production in order to obtain high profit. It is to make sure that the product sold will satisfied customers taste and preference.

Management of operation is very important because it is the major part of production. Operation workers responsible in determine goods and services product are high in quality. This part is important to determine that every business activities are run smoothly and the objectives are achieved as what we have set or aim at the place. Therefore, the organization planning will gain profit. Apart of that organization structure is important factor that can assure the achievement on the failure organization systems.

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4.1.2 Operation Department Organization Chart

General Manager Muhammad Safwan Bin Omar

Operation Manager Muhammad Afiq Bin Abdul Rahman

6 General Workers

Figure 4.1.1: Operation Department Organization Chart for Crab Enterprise

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4.2

MANPOWER PLANNING

4.2.1 List of Operation Personnel


Table 4.2-1: Number of Operation Department Personnel POSITION General Worker TOTAL NO. OF PERSONNELS 6 6

4.2.2 Schedule of Tasks and Responsibilities


Table 4.2-3: Schedule of Tasks and Responsibilities of Operation Employees POSITION General Worker TASKS AND RESPONSIBILITIES

Check the crabs condition to maintain the quality of the products.

Choose the best quality products for the customer.

Deliver the crabs to the customer. Care the cleanliness and the hygiene of the cage.

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4.2.3 Schedule of Remuneration


Table 4.2-4: Remuneration for Operation Staff

POSITION

NO.

MONTHLY SALARY

EPF CONTRIBUTION (12%)

SOCSO (Refer to SOCSO Table) (RM) 11.35

TOTAL AMOUNT

(RM) General Worker TOTAL 6 700.00

(RM) 84.00

(RM) 4,772.20

4,772.20

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4.3

PROCESS PLANNING 4.3.1 Activity Flow Chart for Rearing and Softening The Crab

Get crabs from supplier.

Separate the crabs according to its gender male, female, and both

Pull out the crabs pinch and leg for fastening the changes skin of the crab Grow the crabs by submerging it

Separate the mature crabs that are ready to become soft skin crabs to another cage

The crabs change their skin

Take out the soft skin crabs and submerge them in tap water

Package the soft-shell crab according to customers request

Figure 4.3.1: Activity Flow Chart for Harvesting and Softening the Crab

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4.3.2

Process Flow Chart for Entertaining Customer

When customer comes, ask them the specifications of the crabs.

Bring the customer to see the crabs at the cage.

Let the customer choose their crabs.

Sell the crabs to customer.

Deliver the crabs.

Figure 4.3.2: Process Chart for Entertaining Customer

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Table 4.3.3: Description of the symbol

Symbol

Type of Activity Operation

Description Activities that modify, transform or give values to the input

Transportation

Transport activity occurs when materials are transported from one point to another.

Inspection

Activity that measures standard of the inprocess material, finished products or services.

Delay

The symbol is used when in-process material is restrained in a location waiting for next activity.

Storage

The symbol is used when the in-process materials or finished products are stored in the storage area.

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4.4

OPERATION LAYOUT PLAN (AREA/FACTORY)

Figure 4.4.1: Operation Layout


*All unit for length and width are in feet. Size for one pool = 10ft x 10ft. Amount of soft skin crab for one pool = 290 crabs. Specifications of one pool = one net and crab cage

Picture 4.4.1: Crabs Pool or Cage

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4.5

PRODUCTION PLANNING

Production planning is important as to make sure that our business is able to fulfill the expected market demand on sales. By using this planning, the business will determine the number of output to produce for a certain period such as in a day, a week or a month.

The calculations for outputs are as follows: Output per month = Average monthly sales Average price RM 46,305.00 RM28/kg 1, 653.75kg/month

Output per day

Output per month Working days in a month 1, 653.75kg/month 30days 55.125 @ 55 kg/day

No of workers required

= = =

Output per day Working hour per day 55 10 5.5 @ 6 workers

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4.6

MATERIAL PLANNING 4.6.1 List of Raw Material/Material Requirement

No. 1 2

Raw Material Hard shell palm crab Small fishes (crab food)

Supplier Local fisherman Local fisherman

4.6.2 Material Requirement Schedule


Material Quantity Safety Stock Total Material Requirement Price (RM) Total Price (RM) 7 / kg 4 / kg 26,180.00

Hard shell palm crab Small fishes (crab food) Plastic bag (7inchx9inch) Plastic bag (L)

3,400 kg 100 kg

340 kg 10 kg

3,740 kg 110 kg

440.00 501.60 116.00 27,237.60

12000 sheet 2000 sheet

1200 sheet 200 sheet TOTAL

13200 sheet 2200 sheet

3.80 / 100sheets 5.30 / 100sheets

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4.6.3

: Purchase projection

Purchase projection for The Crab Enterprise Year Month Purchase projection (RM) 2012 January *February March April May June July August September October November December TOTAL 27,238.00 15,639.00 21,265.00 22,650.00 16,420.00 18,639.00 20,750.00 19,350.00 26,780.00 13,550.00 25,760.00 16,740.00 244,781.00 269,259.10 309,648.00

2013 2014

Increased by 10% Increased by 15%

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4.7

MACHINE AND EQUIPMENTS PLANNING 4.7.1 Machine and Equipments Requisition Planning

No.

Machines/Equipments

Quantity

Price / Unit (RM)

Total Price (RM) 11,500 3,000

1 2 3 4

Pool or Cage Freezer Cool box / Chill box Others TOTAL

23 1 3 -

500 3,500

350

1,050 700
16,250

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4.8

BUSINESS AND OPERATION HOURS


Business Hours 1000 - 500 Monday Saturday Operation Hours 2 Shift (7am-7pm & 7pm-7am) 7 days

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4.9 PROJECT IMPLEMENTATION SCHEDULE


Activities Deadlines Durations

Building of cage and office Application for permits and license Renovation and wiring at cage Searching for crab supplier Procurement of raw material Recruitment of general worker Installation of office equipment

June September 2011 June September 2011 September October 2011 July August 2011 Sept Nov 2011

3 months

3 months

1 months

1 month

2 months

Nov 2011

1 month

Nov 2011

1 month

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4.10
No.

OPERATIONS OVERHEAD
Overheads Cost (RM)

1 2

Repairs and maintenance Diesel TOTAL

300.00 400.00 700.00

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4.11

OPERATIONS BUDGET
Item Fixed Assets (RM) Renovation 18,000.00 16,250.00 45,000.00 Monthly Expenses (RM) Other Expenses (RM)

Machine and Equipment Lorry Raw materials Salary + (EPF+SOCSO) Operations Overheads License/Permits Road tax and insurance TOTAL

27,237.60
4,772.20 700.00 150.00 1500.00 79,250.00 32,709.80 1,650.00

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CHAPTER 5

FINANCIAL PLAN

5.1

INTRODUCTION TO FINANCIAL PLAN


Every business must have its own financial plan. Financial plan, in general is used as a budget, a plan for spending and saving future income. This plan allocates money for short-term and long-term goals. Business plan created the three primary financial statements, that is, balance sheet, income statement and cash flow statement wrapped in one financial plan. Without financial plan, the cash flow for ones business will be unclear and will cause future projects to be in a pinch as there is no trace of where the money is coming from and going to. This is to make sure that all

contributors know where their money are going and for what purpose to avoid profit loss.

In short, financial report, the backbone of the company will help to keep tracks of incoming and outgoing money for future planning projects such as expanding the business worldwide or serving new service under the same companys name. If not, a thriving company may having trouble to pay rents and utilities.

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5.1.1 Importance of Financial Plan


Financial plan necessary and important in ones company as it serves as: 1. The reference for the past and current cash flow. 2. Trace the incoming and outgoing cash flow in the business. 3. Good financial report will attract investors to invest in the business. 4. Act as a road map to determine the next short-term and longterm goals for the company. 5. Creating and maintaining emergency funds for future funds. 6. It gives the contributors the chance to estimate their earnings for a upcoming period.

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5.2

INPUT Table 5.2.1: Table of Administrative Expenditure


ADMINISTRATIVE EXPENDITURE

Fixed Assets Land & Building Office Furniture & Fittings Office Equipments Working Capital Salaries (EPF & SOCSO) Rent Utilities Office Supplies Other Expenditure Other Expenditure Pre-Operations Deposit (rent, utilities, etc.) Business Registration & Licences Insurance & Road Tax for Motor Vehicle Other Expenditure TOTAL

RM 3,500 7,380

15,808 800 500 150 5400 2,600 325 500 36,963

Table 5.2.2: Table of Marketing Expenditure


MARKETING EXPENDITURE Fixed Assets Signboard Working Capital Promotion Travelling Other Expenditure Other Expenditure Pre-Operations Deposit (rent, utilities, etc.) Business Registration & Licences Insurance & Road Tax for Motor Vehicle Other Expenditure TOTAL RM 1,800 20 400 3525

5,745

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Table 5.2.3: Table of Operations Expenditure


OPERATIONS EXPENDITURE Fixed Assets Renovation Lorry Machine & Equipment Working Capital Raw Materials & Packaging Carriage Inward & Duty Salaries, EPF & SOCSO Operations Overheads Other Expenditure Other Expenditure Pre-Operations Deposit (rent, utilities, etc.) Business Registration & Licences Insurance & Road Tax for Motor Vehicle Other Expenditure TOTAL RM 18,000 45,000 16,250

27,238 4,772 700

150 1,500 113,610

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Table 5.2.4: Table of Sales Projection


SALES PROJECTION Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total Year 1 ToTal Year 2 Total Year 3 65,200 46,491 50,700 50,514 45,200 46,791 50,514 48,650 58,300 38,000 55,300 555,660 611,226 702,910

Table 5.2.5: Table of Purchase Projection


PURCHASE PROJECTION Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total Year 1 Total Year 2 Total Year 3 27,238 15,639 21,265 22,650 16,420 18,639 20,750 19,350 26,780 13,550 25,760 16,740 244,781 269,259 309,648

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Table 5.2.6: Table of Cash Collections for Sales


CASH COLLECTIONS FOR SALES In the month of sale 1 month after sale 2 months after sale Total 100%

100%

Table 5.2.7: Table of Cash Payment for Purchases


CASH PAYMENTS FOR PURCHASES In the month of purchase 1 month after purchase 2 months after purchase Total 60% 40% 100%

Table 5.2.8: Table of Fixed Assets


FIXED ASSETS Office Furniture & Fittings Office Equipments Signboard Econ. Life (yrs)

5 5 5 5

FIXED ASSETS Renovation Lorry Machine & Equipment

Econ. Life (yrs)

5 5 5 5

DEPRECIATION METHOD (1=straight line, 2=declining balance)

Table 5.2.9: Table of Increase in Working Capital


INCREASE IN WORKING CAPITAL (%) Year 2 Year 3 3% 5%

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Table 5.2.10: Table of Ending Stock of Raw Materials


ENDING STOCK OF RAW MATERIALS

End of Year 1 End of Year 2 End of Year 3

RM 1,400 1,050 525

ENDING STOCK OF FINISHED GOODS

End of Year 1 End of Year 2 End of Year 3

RM 1,400 1,050 525

Table 5.2.11: Table of Source of Finance


LOAN (if required) Interest rate Loan duration Interest payment method*
* Method: 1 = flat rate 2 = annual rest

8% 10 2

HIRE-PURCHASE (if required) Interest rate Hire-purchase duration 3% 5

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5.3

PROJECT IMPLEMENTATION COST AND SOURCES OF FINANCE


Table 5.3.1: Table of Project Implementation Cost & Sources of Finance

THE CRAB ENTERPRISE PROJECT IMPLEMENTATION COST & SOURCES OF FINANCE Project Implementation Cost
Requirements Fixed Assets Land & Building Office Furniture & Fittings Office Equipments Cost Loan

Sources of Finance
HirePurchase Own Contribution Cash 3,500 7,380 3,500 7,380 Existing F. Assets

Signboard

1,800

1,800

Renovation Lorry Machine & Equipment

18,000 45,000 16,250

10,000 35,000 11,000

8,000 10,000 5,250

months Working Capital 2 Administrative Marketing Operations Pre-Operations & Other Expenditure Contingencies 5%
TOTAL

34,515 840 65,420 14,000 10,335 217,040

4,515 20,385 8,765 5,335 60,000 35,000

30,000 840 45,035 5,235 5,000 122,040

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5.4

TABLES OF BUDGETS
Table 5.41: Table of Administrative Budget
ADMINISTRATIVE BUDGET

Particulars Fixed Assets Land & Building Office Furniture & Fittings Office Equipments Working Capital Salaries (EPF & SOCSO) Rent Utilities Office Supplies Pre-Operations & Other Expenditure Other Expenditure

F.Assets 3,500 7,380

Monthly Exp.

Others

Total 3,500 7,380

15,808 800 500 150 5,400 2,600 325 500 10,880 17,258 8,825

15,808 800 500 150

Deposit (rent, utilities, etc.) Business Registration & Licenses Insurance & Road Tax for Motor Vehicle Other Pre-Operations Expenditure
Total

2,600 325 500 31,563

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Table 5.4.2:

Table of Marketing Budget


MARKETING BUDGET

Particulars Fixed Assets Signboard Working Capital Promotion Travelling Pre-Operations & Other Expenditure Other Expenditure

F.Assets

Monthly Exp.

Others

Total

1,800

1,800

20 400 3,525 1,800 420 3,525

20 400

Deposit (rent, utilities, etc.) Business Registration & Licenses Insurance & Road Tax for Motor Vehicle Other Pre-Operations Expenditure
Total

2,220

Table 5.4.3:

Table of Operations Budget


OPERATIONS BUDGET

Particulars Fixed Assets Renovation Lorry Machine & Equipment Working Capital Raw Materials & Packaging Carriage Inward & Duty Salaries, EPF & SOCSO Operations Overheads Pre-Operations & Other Expenditure Other Expenditure

F.Assets 18000 45000 16250

Monthly Exp.

Others

Total 18,000 45,000 16,250 -

27,238 4,772 700 150 1,500 79,250 32,710 1,650

27,238 4,772 700

Deposit (rent, utilities, etc.) Business Registration & Licenses Insurance & Road Tax for Motor Vehicle Other Pre-Operations Expenditure
Total

150 1,500 113,610

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5.5

TABLE OF DEPRECIATION LOAN AND HIRE PURCHASE AMORTIZATION SCHEDULE Table 5.5.1: Table of Depreciation Schedules
THE CRAB ENTERPRISE DEPRECIATION SCHEDULES

The Crab Enterprise

Fixed Asset Cost (RM) Method Economic Life (yrs)


Year Annual Depreciation

Office Furniture & Fittings 3,500 Straight Line 5


Accumulated Depreciation Book Value

Fixed Asset Cost (RM) Method Economic Life (yrs)


Year Annual Depreciation

Office Equipments 7,380 Straight Line 5


Accumulated Depreciation Book Value

1 2 3 4 5 6 700 700 700 700 700 0

700 1,400 2,100 2,800 3,500 0

3,500 2,800 2,100 1,400 700 1 2 3 4 5 6

1,476 1,476 1,476 1,476 1,476 0

1,476 2,952 4,428 5,904 7,380 0

7,380 5,904 4,428 2,952 1,476 -

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Fixed Asset Cost (RM) Method Economic Life (yrs)


Year Annual Depreciation

Signboard 1,800 Straight Line 5


Accumulated Depreciation Book Value

1 2 3 4 5 6 360 360 360 360 360 0

360 720 1,080 1,440 1,800 0

1,800 1,440 1,080 720 360 -

Fixed Asset Cost (RM) Method Economic Life (yrs)


Annual Year Depreciation

Renovation 18,000 Straight Line 5


Accumulated Depreciation Book Value

Fixed Asset Cost (RM) Method Economic Life (yrs)


Annual Year Depreciation

Lorry 45,000 Straight Line 5


Accumulated Depreciation Book Value

1 2 3 4 5 6 3,600 3,600 3,600 3,600 3,600 0

3,600 7,200 10,800 14,400 18,000 0

18,000 14,400 10,800 7,200 3,600 1 2 3 4 5 6

9,000 9,000 9,000 9,000 9,000 0

9,000 18,000 27,000 36,000 45,000 0

45,000 36,000 27,000 18,000 9,000 -

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Fixed Asset Cost (RM) Method Economic Life (yrs)


Annual Year Depreciation

Machine & Equipment 16,250 Straight Line 5


Accumulated Depreciation Book Value

1 2 3 4 5 6 3,250 3,250 3,250 3,250 3,250 0

3,250 6,500 9,750 13,000 16,250 0

16,250 13,000 9,750 6,500 3,250 -

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Table 5.5.2:

Table of Loan & Hire Purchase Amortization Schedules


THE CRAB ENTERPRISE

LOAN & HIRE-PURCHASE AMMORTISATION SCHEDULES LOAN REPAYMENT SCHEDULE


Amount Interest Rate Duration (yrs) 60,000 8% 10 Baki Tahunan
Interest Total Payment Principal Balance

HIRE-PURCHASE REPAYMENT SCHEDULE


Amount Interest Rate Duration (yrs) 35,000 3% 5
Total Payment Principal Balance

Method
Year Principal

Year

Principal

Interest

1 2 3 4 5 6 7 8 9 10 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 0

4,800 4,320 3,840 3,360 2,880 2,400 1,920 1,440 960 0 10,800 10,320 9,840 9,360 8,880 8,400 7,920 7,440 6,960 -

60,000 54,000 48,000 42,000 36,000 30,000 24,000 18,000 12,000 6,000 6000 1 2 3 4 5 6 7 8 9 10

7,000 7,000 7,000 7,000 7,000 0 0 0 0 0

1,050 1,050 1,050 1,050 1,050 0 0 0 0 0 8,050 8,050 8,050 8,050 8,050 -

35,000 28,000 21,000 14,000 7,000 -

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5.6 PRO FORMA CASH FLOW STATEMENT


MONTH CASH INFLOW Capital (Cash) Loan Cash Sales Collection of Accounts Receivable TOTAL CASH INFLOW CASH OUTFLOW Administrative Expenditure Salaries (EPF & SOCSO) Rent Utilities Office Supplies Marketing Expenditure Promotion Travelling Operations Expenditure Cash Purchase Payment of Account Payable Carriage Inward & Duty Salaries, EPF & SOCSO Operations Overheads Other Expenditure Pre-Operations Deposit (rent, utilities, etc.) Business Registration & Licences Insurance & Road Tax for Motor Vehicle Other Pre-Operations Expenditure Fixed Assets Purchase of Fixed Assets Land & Building Purchase of Fixed Assets Others Hire-Purchase Down Payment Hire-Purchase Repayment: Principal Interest Loan Repayment: Principal Interest Tax Payable TOTAL CASH OUTFLOW CASH SURPLUS (DEFICIT) BEGINNING CASH BALANCE ENDING CASH BALANCE 62,005 120,035 49,988 (49,988) 120,035 120,035 70,047 44,999 20,201 70,047 90,248 43,735 2,756 90,248 93,003 46,817 3,883 93,003 96,887 43,633 6,881 96,887 103,768 42,472 2,728 103,768 106,496 500 400 500 400 500 400 500 400 500 400 500 400 2,600 475 1,500 500 4,772 700 8,925 4,772 700 4,772 700 4,772 700 4,772 700 4,772 700 20 400 16,343 20 400 9,383 10,895 20 400 12,759 6,256 20 400 13,590 8,506 20 400 9,852 9,060 20 400 11,183 6,568 15,808 800 500 150 15,808 800 500 150 15,808 800 500 150 15,808 800 500 150 15,808 800 500 150 15,808 800 500 150 182,040 122,040 60,000 65,200 46,491 50,700 50,514 45,200 PreOperations 1 2 3 4 5 6

65,200

46,491

50,700

50,514

45,200

46,930 10,000

583 88

583 88

583 88

583 88

583 88

583 88

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7 8 9 10 11 12 TOTAL YR 1 122,040 60,000 46,791 46,791 15,808 800 500 150 20 400 12,450 7,456 4,772 700 50,514 50,514 15,808 800 500 150 20 400 11,610 8,300 4,772 700 48,650 48,650 15,808 800 500 150 20 400 16,068 7,740 4,772 700 58,300 58,300 15,808 800 500 150 20 400 8,130 10,712 4,772 700 38,000 38,000 15,808 800 500 150 20 400 15,456 5,420 4,772 700 55,300 55,300 15,808 800 500 150 20 400 10,044 10,304 4,772 700 555,660 737,700 189,692 9,600 6,000 1,800 240 4,800 146,868 91,216 57,266 8,400 8,925 2,600 475 1,500 500 1,500 1,500 611,226 611,226 195,383 9,888 6,180 1,854 247 4,944 161,555 97,912 58,984 8,652 9,193 702,910 702,910 205,152 10,382 6,489 1,947 260 5,191 185,789 107,704 61,934 9,085 9,652 YEAR 2 YEAR 3

46,930 10,000 583 88 500 400 44,626 2,165 106,496 108,660 583 88 500 400 44,631 5,883 108,660 114,544 583 88 500 400 48,529 121 114,544 114,665 583 88 500 400 43,563 14,737 114,665 129,402 583 88 500 400 45,597 (7,597) 129,402 121,806 583 88 500 400 0 45,069 10,231 121,806 132,037 132,037 7,000 1,050 6,000 4,800 0 605,663 132,037 7,000 1,050 6,000 4,320 0 574,663 36,563 132,037 168,600 7,000 1,050 6,000 3,840 0 622,974 79,936 168,600 248,535

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5.7

PRO FORMA INCOME STATEMENT Table 5.7.1: Table of Income Statement


THE CRAB ENTERPRISE PRO-FORMA INCOME STATEMENT
Year 1 555,660 Year 2 611,226 Year 3 702,910

Sales Less: Cost of Sales Opening stock Purchases less: Ending Stock Carriage Inward & Duty

244,781 1,400 243,381

1,400 269,259 1,050 269,609 341,617

1,050 309,648 525 310,173 392,737

Gross Profit Less: Enpenditure Administrative Expenditure Marketing Expenditure Other Expenditure Business Registration & Licences Insurance & Road Tax for Motor Vehicle Other Pre-Operations Expenditure Interest on Hire-Purchase Interest on Loan Depreciation of Fixed Assets Operations Expenditure Total Expenditure Net Profit Before Tax Tax Net Profit After Tax Accumulated Net Profit

312,279

207,092 5,040 8,925 475 1,500 500 1,050 4,800 18,386 65,666 313,435 (1,155) 0 (1,155) (1,155)

213,305 5,191 9,193

223,970 5,451 9,652

1,500

1,500

1,050 4,320 18,386 67,636 320,582 21,035 0 21,035 19,880

1,050 3,840 18,386 71,018 334,868 57,869 0 57,869 77,749

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5.8

PRO FORMA BALANCE SHEET Table 5.8.1: Table of Balance Sheet


THE CRAB ENTERPRISE PRO-FORMA BALANCE SHEET
Year 1 ASSETS Fixed Assets (Book Value) Land & Building Office Furniture & Fittings Office Equipments Year 2 Year 3

2,800 5,904

2,100 4,428

1,400 2,952

Signboard

1,440

1,080

720

Renovation Lorry Machine & Equipment

14,400 36,000 13,000 73,544

10,800 27,000 9,750 55,158 0 1,050 168,600 169,650 2,600 227,408

7,200 18,000 6,500 36,772 0 525 248,535 249,060 2,600 288,432

Current Assets Stock of Raw Materials Stock of Finished Goods Accounts Receivable Cash Balance

0 1,400 132,037 133,437

Other Assets Deposit TOTAL ASSETS Owners' Equity Capital Accumulated Profit Long Term Liabilities Loan Balance Hire-Purchase Balance Current Liabilities Accounts Payable TOTAL EQUITY & LIABILITIES

2,600 209,581

122,040 (1,155) 120,885 54,000 28,000 82,000 6,696 209,581

122,040 19,880 141,920 48,000 21,000 69,000 16,487 227,408

122,040 77,749 199,789 42,000 14,000 56,000 32,643 288,432

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5.9

FINANCIAL PERFORMANCE 5.9.1 Table of Financial Performance


THE CRAB ENTERPRISE

FINANCIAL PERFORMANCE
Year 1 PROFITABILITY Sales Gross Profit Profit Before Tax Profit After Tax Accumulated Profit LIQUIDITY Total Cash Inflow Total Cash Outflow Surplus (Deficit) Accumulated Cash SAFETY Owners' Equity Fixed Assets Current Assets Long Term Liabilities Current Liabilities FINANCIAL RATIOS Profitability Return on Sales Return on Equity Return on Investment Liquidity Current Ratio Quick Ratio (Acid Test) Safety Debt to Equity Ratio BREAK-EVEN ANALYSIS Break-Even Point (Sales) Break-Even Point (%) 555,660 312,279 (1,155) (1,155) (1,155) Year 2 611,226 341,617 21,035 21,035 19,880 Year 3 702,910 392,737 57,869 57,869 77,749

737,700 605,663 132,037 132,037

611,226 574,663 36,563 168,600

702,910 622,974 79,936 248,535

120,885 73,544 133,437 82,000 6,696

141,920 55,158 169,650 69,000 16,487

199,789 36,772 249,060 56,000 32,643

0% -1% -1% 19.9 19.7

3% 15% 9% 10.3 10.2

8% 29% 20% 7.6 7.6

0.7

0.6

0.4

426,904 77%

435,679 71%

454,348 65%

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5.10

GRAPH OF FINANCIAL PERFORMANCE

Current Ratio
25.0 20.0 Ratio 15.0 10.0 5.0 0.0 1 2 Year 3 25.0 20.0 15.0 10.0 5.0 0.0 Ratio 1

Quick Ratio (Acid-Test)

2 Year

Return on Sales
10% 8% 6% 4% 2% 0% -2% % 40% 30% 20% 10% 0% 1 2 Year 3 -10% 1 %

Return on Equity

2 Year

Return on Investment
25% 20% 15% 10% 5% 0% -5% 0.8 0.6 0.4 0.2 1 2 Year 3 0.0 1 Ratio

Debt to Equity Ratio

2 Year

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CHAPTER 6

APPENDICES

6.1

PARTNERSHIP AGREEMENT

This Partnership Agreement is made on 3rd December 2011 between Muhammad Safwan Bin Omar, Nur Aqila Dayana Binti Osman, Muhammad Dzul Ikram Bin Md Abd Basah, Muhammad Afiq Bin Abdul Rahman, and Nuraisyahida Binti. Mohd Shabudin.

1.

Name and Business The parties hereby form a partnership under the name of The Crab Enterprise to produce soft skin crab. The principal office of the business shall be at KM 86.3, Jalan Pipit, Kuala Gula, Peti Surat 1079, 89028, Perak Darul Ridzuan.

2.

Term The partnership shall begin on 3rd January 2012 and shall continue until every partners agreed to terminate this partnership agreement.

3.

Capital The capital of the partnership shall be contributed in cash by the partners as follows:

o o o

A separate capital account shall be maintained for each partner. Neither partner shall withdraw any part of their capital account. Upon the demand of either partner, the capital accounts of the partners shall be maintained at all times in the proportions in which the partners share in the profits and losses of the partnership.The capital contribution to the partnership is stated as follows:

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Name
Muhammad Safwan Bin Omar Nur Aqila Dayana Binti Osman Muhammad Dzul Ikram Bin Md Abd Basah Muhammad Rahman Nuraisyahida Shabudin Afiq Bin Abdul

Position
General Manager Administrative Manager Marketing Manager Operation Manager Financial Manager TOTAL

Capital Contribution
RM 31,730.40 RM 22,577.40 RM 22,577.40 RM 22,577.40

Percentage
26% 18.5% 18.5% 18.5%

Binti.

Mohd

RM 22,577.40 RM 122,040.00

18.5% 100%

4.

Profit and Loss The net profits of the partnership shall be divided equally between the partners and the net losses shall be borne equally by them. A separate income account shall be maintained for each partner. Partnership profits and losses shall be charged or credited to the separate income account of each partner. If a partner has no credit balance in their income account, losses shall be charged to their capital account.

5.

Salaries and Withdrawals Partners shall receive any salary for services rendered to the partnership. Each partner may, from time to time, withdraw the credit balance in their income account.

6.

Interest No interest shall be paid on the initial contributions to the capital of the partnership or on any subsequent contributions of capital.

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7.

Management Duties and Restrictions The partners shall have equal rights in the management of the partnership business, and each partner shall devote their entire time to the conduct of the business. Without the consent of the other partner neither partner shall on behalf of the partnership borrow or lend money, or make, deliver, or accept any commercial paper, or execute any mortgage, security agreement, bond, or lease, or purchase or contract to purchase, or sell or contract to sell any property for or of the partnership other than the type of property bought and sold in the regular course of its business.

8.

Banking All funds of the partnership shall be deposited in its name in such checking account or accounts as shall be designated by the partners. All withdrawals therefrom are to be made upon checks signed by either partner.

9.

Books The partnership books shall be maintained at the principal office of the partnership, and each partner shall at all times have access to the books. The books shall be kept on a fiscal year basis, and shall be closed and balanced at the end of each fiscal year. An audit shall be made as of the closing date.

10. Voluntary Termination The partnership may be dissolved at any time by agreement of the partners, in which event the partners shall proceed with reasonable promptness to liquidate the business of the partnership.

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11. Death Upon the death of either partner, the surviving partner shall have the right either to purchase the interest of the decedent in the partnership or to terminate and liquidate the partnership business. 12. Arbitration Any controversy or claim arising out of or relating to this Agreement, or the breach hereof, shall be settled by arbitration in accordance with the rules. In witness whereof the parties have signed this Agreement.

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Executed this 3rd December 2011 in Kuala Gula, each partner agreed and signed this agreement to show their commitment to this partnership.

The Crab Enterprise

..................................... (General Manager) Muhammad Safwan Bin Omar 840305-02-5069

..................................... (Administrative Manager) Nur Aqila Dayana Binti Osman 871121-14-5706

..................................... (Marketing Manager) Muhammad Dzul Ikram Bin Md Abd Basah 820529-14-6011

..................................... (Operation Manager) Muhammad Afiq Bin Abdul Rahman 850430-01-5441

..................................... (Financial Manager) Nuraisyahida Binti. Mohd Shabudin 860510-02-5156

Witnessed by:

.................................... Muhammad Thoriq Bin Jamaludin 820310-14-5859 General Manager of Avatar Enterprise

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-The Crab Enterprise operation site view-

-Inside the crabs pool-

-A ready to moulting crab-

-A male soft skin crab-

-A female soft skin crab-

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-The crabs old skin-

-Soft skin crabs in cold storage-

-The crabs are sorted by size-

-Soft skin crab in package-

-Crabs that ready to change their skin-

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-Fresh hard skin crabs-

-Operations equipments-

-The crab Enterprise operation place-

-Hard skin crab before molting-

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TABLE OF CONTENT Page CHAPTER 1: INTRODUCTION 1.1 1.2 1.3 1.4 1.5 Introduction to the Business Purpose of the Business Plan Background of Business Background of Partners Location of the Business 1 2 3 48 9

CHAPTER 2:

ORGANIZATION/ADMINISTRATION PLAN 2.1 2.2 2.3 2.4 2.5 2.6 2.7 Introduction to the Organizational Plan Organization Chart Administration Personnel List of Office Equipments List of Office Furniture & Fittings Office Layout Administration Budget 10 12 13 14 - 20 20 21 22 23

CHAPTER 3:

MARKETING PLAN 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 Introduction to Marketing Plan Introduction to Product / Services Target Market Market Size Competitors Analysis Market Share Sales Forecast Marketing Strategies Marketing Budget 24 26 27 28 29 30 31 32 33 34 35 36 37 44 45

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CHAPTER 4:

OPERATION PLAN 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 Introduction to Operation Plan Manpower Planning Process Planning Operation Layout Plan Production Planning Material Planning Machine and Equipments Planning Business and Operations Hours Project Implementation Schedule 46 47 48 49 50 52 53 54 55 56 57 58 59 60 61

4.10 Operations Overhead 4.11 Operations Budget

CHAPTER 5:

FINANCIAL PLAN 5.1 5.2 5.3 Introduction to Financial Plan Input Project Implementation Cost and Sources of Finance 5.4 5.5 Tables of Budgets Table of Depreciation Loan and HirePurchase Amortization Schedule 5.6 5.7 5.8 Pro Forma Cash flow Statement Pro Forma Income Statement Pro Forma Balance Sheet 76 77 78 79 70 71 72 75 62 63 64 68 69

CHAPTER 6:

APPENDICES 6.1 Partnership Agreement 80 - 84

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