1.

0 Executive Summary
https://prezi.com/7thoygy8_jc5/business-plan/
1.1 Vision
Transforming RM1 Shop into a profitable, diversified, and valuable Grab N Go snack
stall as well forging a new inroad into this ever evolving field.
1.2 Mission
To promote optimum health for University students and staffs by encouraging the habit of
not skipping meals.
1.3 Objectives
1. To produce high quality and great tasting Grab N Go snacks in infrastructure
University Kuala Lumpur (IUKL).
2. Providing excellent customer services that enhances the rapport with students
through responsiveness to needs and requests.
3. Providing tasty and wholesome snacks at an affordable price.
1.4 Keys to Success
1. Having the visible Booth no.32 as our stall location has inevitably caught the
interest of many customers.
2. The uniqueness and affordable price of our Grab N Go snacks compared to other
stalls has drawn the attention of many.
3. Our friendly staff fully comprehend the meaning of Service with a Smile and has
served customers politely likewise professionally.
4. The fine reputation of our stall has gained recognition and was advertised through
the word-of-mouth of our loyal customers.

2.0 Company Summary

RM1 Shop is a mini stall at Booth no.32 located at the Foyer of Infrastructure University
Kuala Lumpur (IUKL). The stall specializes on providing scrumptious Grab N Go
snacks which ranges from kaya toast to skewers of curry fishball, sausages and seafood
tofu.
2.1 Company Ownership
RM1 Shop is a newly start-up company that ventures into the partnership practice
business and is own by a group of 5 young entrepreneur apprentices. The company

highlights the snack industry and offers Grab N Go snacks such as kaya, peanut butter
and butter toasts alongside curry fishballs, sausages, and seafood tofu.
2.2 Significant Trends
In this 21st century, people often miss meals because they are busy or to lose weight.
Several observational studies and short-term experiments have suggested an association
between meal skipping and poor health. The researchers found that skipping meals during
the day and eating one large meal in the evening resulted in potentially risky metabolic
changes where the meal skippers had elevated fasting glucose levels and delayed insulin
responses which are conditions that if persisted long term, could lead to diabetes.
The significant deterioration on health has caused a string of concerns and awareness
should be instilled especially in the life of young University students and diligent
University staffs. We RM1 Shop offers busy students and staffs to Grab N Go their
snacks at an affordable price of RM1. By doing so, they will try to avoid skipping meals
as much as they can and improving their health and wellbeing.
2.3 Growth Rate
As the awareness of health is increased, we believe our affordable and ready snacks can
significantly improve the health of both University students and staffs even though they
are engulfed with heavy workloads, hectic test and assignments. Hence, our market size
can be expanded as time passes.
2.4 Company Location and Facilities
RM1 Shop is located at Infrastructure University Kuala Lumpur (IUKL)s Foyer - Booth
no.32. In the future RM1 Shop will provide more variety of sandwich snacks and offering
snack delivery services around the University.
3.0 Products
The range of snacks RM1 Shop offers are:

Kaya, peanut butter and butter toast (choice of customer)

Curry fishball, seafood tofu and sausage skewers.

3.1 Product Description

Roti Kaya is well-known as a traditional breakfast in both Malaysia and Singapore. It is a
deceptively simple dish of toasted bread, butter and kaya spread that complements
excellently with a strong cup of Liberica coffee which is beloved by kopitiam regulars.
Coconut Jam contains natural lauric acid, natural Medium-Chain Triglyceride (MCT) oil
and a low glycemic index which does not increase blood sugar levels when consumed. It
is a healthier alternative to sugar-based jam as it is high in fiber. To provide customers a
varied choice of spread, we have encompassed Peanut Butter which contains levels of

protein and potassium that lowers the risk of high blood pressure, stroke and heart
diseases in the choice of spread. This simple snack is the ultimate comfort food for those
with a sweet tooth, offering the right mix of crunch and sugar rush.
Curry fishball is actually a famous street food in Hong Kong which is commonly served
on wooden skewers. Our fragrance mild and yellow curry matches wonderfully with our
high quality fishballs. Curry reduces inflammation and aids in digestion while fishball
brings about nutritional benefits such as significant sources of vitamin D and vitamin B12
which is good for body metabolism. To offer customers a varied choice of snacks, we
have included curry sausages which contains beneficial protein, iron and vitamin B-12
and curry seafood tofu that contains Iron, Manganese, Calcium, as well as Omega 3 in the
choice of skewers.
3.2 Competitive Comparison
Our competitor in the snack industry is Booth no. (Nixons group). They are a wellknown snack stall selling their signature sweet corn cups and curry fishball. Their stall is
situated in a strategic place facing the main corridor of block 2 that has many passersby.
Even so, our fishball is the competitive edge against them even though both stalls are
selling it at RM1. The difference is that we are selling 4 fishballs in a skewer while they
are selling three fishballs in a skewer; attracting more customers towards our stall.
3.3 Sourcing
RM1 Shop purchases its fishball, sausages, seafood tofu and butter from Tesco the
multinational grocery and general merchandise retailer. On the other hand, our signature
kaya, butter and bread were bought from local bakeries.
3.4 Future Products
In the future, RM1 Shop will offer a more interesting and varied delectable snacks such
as egg and mayo sandwiches, bagel, muffins, cookies and fresh salad. We will be
expanding our business with selling beverages such as healthy milkshakes and freshly
squeezed juices.

I.

INDUSTRY PROFILE AND OVERVIEW

A. Industry Analysis
i) Industry background and overview
The bread industry in Malaysia is flourishing very quickly and bread products are gaining
much popularity. In fact, bread has been labelled as the most popular substitute of rice,
the staple diet of Malaysians. Packaged foods like sausages and fish ball are also
Malaysians favourite dining ingredients nowadays. The industry is pulverized with many
manufacturers, suppliers and retailers. Large companies are controlling the market. In an
open industry growing at such a strong rate, the RM1 Shop is in position to capitalize on
the customers needs for quality product and exceptional service.

ii) Significant trends

In the current 21st century, all things are moving fast. The advance in technology causes
people to move faster to earn their living. Meals are skipped in order to complete the task
given. In America, according to a new study from Instantly that surveyed 10,000 people,
more than 53 percent of Americans skip breakfast at least once a week, and 12 percent
never have breakfast. That is totally not a healthy trend. By skipping meals, people dont
get any closer to developing a healthy-looking body. In fact, doing it might make it even
harder to get rid of the extra weight. Blood sugar level will drop and body will experience
shortage of energy. People will easily become tired, sluggish, moody and irritable.
Cognitive functions are affected. People may suffer difficulty in attention, memory,
concentration and general mental performance. Metabolisms are slowed down and other
health consequences such as nausea, constipation, fatigue, kidney stress and low blood
pressure will kick in. Thus, sustainable eating and exercising plan is important to improve
and prevent numerous conditions, including cardiovascular disease, cancer and stroke.

iii) Growth rate

Malaysia has a packaged food industry worth US$5.5 billion in 2011, led by dried
processed food, dairy and bakery and is forecast to grow to $5.9 billion by 2016. The
Malaysian food and beverage retail market is expected to grow by 10 per cent per annum
with Malaysian households spending almost a quarter of their incomes on food and
beverages (2015 Merger Alpha Articles).
The bread industry in Malaysia has seen many changes in the last decade. It has emerged
as a small-scale processing industry, and then grown to medium-scale and now, the birth
of a new trend called the boutique bakery. The bakery products industry in Malaysia
where baked goods dominates a large share of 62%, recorded a value of almost RM 2
billion per annum in 2003 with a strong growth of 65 million over the previous year
(Anon., 2003). The bread and the bakery products market are forecast to experience a
steady growth of about 4% per annum in the coming years (Anon., 2002).
iv) Barriers to entry and exit
Our industry is easy to enter and easy to exit as the cost to sell our products are low. It is
also easy to make the product.
v) Key elements in the business
Quality We use high quality ingredients to prepare our products.
Cost The ingredients of our products are easy to be found and inexpensive. This

enables us to sell at a reasonable price and earning good profit.

Health We provide fresh prepared toast and curry food.
Marketing Gain people attention to know the existence and uniqueness of our
products.
Management Tasks are divided accordingly based on ones expertise.

B. Stage of Growth

Start-up
At the introduction stage, we expect that our sales are low as people are not well aware
of our products. Thus, advertising should be focused in this stage in order to increase
people awareness.
Growth
At the growth stage, consumers begin to accept our product. Therefore, we will
experience an increase in profits.
Maturity
We expect maturity stage happen on the second day of our event as the people in IUKL
already aware and tried our products. The rate of sales growth slows down as the product
has been widely sold. Thus, we must focus on offering promotion or modify the product
such as improving the taste of the curry soup base to boost sales.

VI. COMPETITOR ANALYSIS

A. Existing Competitors

There are one stall selling curry fish balls at the main corridor of block 2. There
are also some stalls selling bread but with different ingredients in it.

Stall
Stall 11

Strength
Weakness
-Selling curry fish balls and also -More expensive

Stall 40

corn
-Better location
-Ingredients in bread are fresher -More expensive
-No flyer to tell information
such as tomato and lettuce

Stall 51

-Has

stall 55
Stall 60

higher quality of burger meat.

-Has better variety of burgers
-Bread looks attractive and tasty -More expensive.
-Own-made bread with curry -The booth is not very attractive.
-Quite small in size.
inside
-Great appetizer

better

equipment

and -More expensive.

VII. BUSINESS STRATEGY

A. Desired Image and Position in Market
Our RM1 Shop will focus on selling foods to the students and staffs ranging from 18 to
50 years old in Infrastructure University Kuala Lumpur. The majority targeted customers
are students as they possessed higher opportunities to buy our products as they pass by to
attend their classes. Our market position is selling food to those who are craving for spicy
and crispy flavour. We expect a lot of customers to come and buy our product since our
Grab N Go snack is convenient to be bought. The spicy favour of curry fishball,

sausages and seafood tofu also suits all Malaysians as well as the foreign students. We
also baked our bread on the spot and it can be served to customers within 5 minutes of
time.
B. Company Goals and Objectives
Establish good business relationships with suppliers who share our commitment
to customer service, quality and competitive pricing.
Provide customers with a more convenient method for obtaining their desired
products
Provide quality food at sensible costs.
C. SWOT Analysis
i.

Strengths:

Cheap and affordable for all people in IUKL.

Easy and fast to make the product.

Low cost of supply with low capital of business.

Weakness:
Not enough decorations to attract customers.
Bakery products are perishable items hence all need to be sold to gain maximum

ii.

profit.
Opportunities:
IUKL has a lot of students who are willing to spend their money on the meal in

iii.

this event.
Great support from friends who to buy the products.
Advertisement can be done easily in zero cost by using online promotion.
Threats:
Have competitors in the area of business. People can sell same thing with burger

iv.

and other curry products.

Price war can be happen between our products and competitors.
D. Competitive Strategy
i.

Cost leadership
RM1 Shop uses strategy of low prices to attract customers. We offer products at a
cheaper rate than competitors on a consistent basis. The ingredients are bought
with low prices. This allows us to sell products at low prices and to profit off thin

ii.

margins at a high volume.

Differentiation

RM1 Shop provides several of curry products which other booths dont have such
as large and small size of fish balls, sausages and seafood tofu. If that is not
enough, toast with kaya or peanut butter can also be freshly baked to satisfy
iii.

customers. Price is cheap.

Focus
The RM1 Shop focuses on providing high-quality product at a very competitive
price and the Grab N Go strategy will save customers valuable time. We have a
beyond service team who are knowledgeable and friendly. People will always feel
welcome to visit our booth.

VIII. MARKETING STRATEGY

A. Target Market
The RM1 Shops target market is the people in IUKL who are seeking for affordable
product to consume and those who always skip their meals. Customers can just grab what
they want to eat, pay and go to their class with just RM1 each. The toast, curry fish ball,
sausages and tofu will fill up their empty stomach and improve their concentration when
learning in the class.

B. Customers Motivation to Buy

Customers motivation to buy depends on their knowledge towards the product and the
services we provided. Thus, it is important that we deliver the product description well
and also providing good services for their satisfaction. In addition, we offer promotion
which attracts customer to buy our product.

C. Market Size and Trends

Most of the customers are staffs, lecturers and students. The market size is based on the
populations of IUKL. Our business is growing because our sales are increasing during the
second day of the entrepreneurship event.

D. Personal Selling Efforts

RM1 Shops sales force consists of a group of 5 people, we trained to shorten the time
taken to cook the ingredients and keep the quality of the food.
The event was held for two days in IUKL. We provide good service to our customers.
Our sales are quite good during both days of the event.

E. Advertising and Promotion

The advertising for our business is mainly build on the communication network. We
promote our products by informing our own friends and ask them to distribute the
message to other friends too. Meanwhile, we also promote our product by selling in
cheap prices for the curry fish balls, sausages, seafood tofu and toast.
F. Pricing
1) Cost structure:
a. Fixed-RM100.00
b. Variable-RM260.85
4 small fish balls-RM1.00
2 big fish balls -RM1.00
2 sausages
-RM1.00
1 seafood tofu -RM1.00
1 set of toast (peanut butter/ kaya/ butter) RM1.00
2) Desired image in market
We plan to set RM1 Shop to be an extra ordinary shop which serving a healthy and
reasonable dish. Grab N Go strategy also brings convenient to the customers.

3) Comparison against competitors prices

After checking all the other competitors prices, we can conclude that most of item that
we have offered is cheap. The price is RM1 for four small curry fish balls, while the other
group sells 4 curry fish balls for RM2. Other group sells bread for RM4 or RM5, while
our group sells toast for just only RM1.

G. Distribution Strategy
A direct marketing selling method is used to do our business. The customers purchases at
our booth and they will receive their food from us.

H. Test Market Results

1) Surveys
Before we determine what to sell, we ask opinions from lecturers and friends. Most of
them suggest selling cheap yet delicious food that many people like to eat. After
discussing in group, we make our mind.

2) Customers feedback on prototypes

We give our friends to test our toast and the curry products before the event. They think
this is a great idea and praise our tasty food. They also promise to buy our nice food
during the entrepreneur event.

3) Focus groups

We focus on consumers who have busy schedules and a desire for quality. As they hurried
through their busy lives, they still want to have a nice meal to maintain health. Thus, our
Grab N Go snacks is indeed a perfect option for them.

IX. LOCATION AND LAYOUT

The location of our business is at foyer of Block 2 in IUKL. Our booth no.32 is set up in
the middle of foyer. It is a good location for us to cook. This location always has students,
lecturers and staffs of IUKL passing by. The average amount of customers is around 300
people per day. This location is also near to the electrical power plug, providing
convenience to do our business with easy access of power supply. Rental of our booth is
RM100 for two days. Size of the booth is 2m x 1m.
6.1 Management Team:
Edmund Tiew Siew Jun: Edmund Tiew Siew Juns father running a coffee shop
business and he works together with his father since from child. He knows the way to
start the business. She is an undergraduate student of Bachelor of Civil Engineering. He
is Director of RM1 Shop.
Chan Yue Ni: Chan Yue Ni has an experience on selling curry fish ball in secondary
school. She has the management skill to operate shop. She is an undergraduate student of
Bachelor of Civil Engineering. She is Secretary of RM1 Shop.
Chong Ee Beng: Chong Ee Beng is an event director of Civil Engineering Club in 2016.
He has worked as supervisor in Giant Shopping Center in Nilai. He knows the way to
plan the best ways of promoting products, services or brand. He is an undergraduate
student of Bachelor of Civil Engineering. He is Marketing Manager of RM1 Shop.
Tay Mun Wei: Tay Mum Wei has full experience of operating grocery trader which is
owned by his father. He has experience is sales and financing the business. He is an
undergraduate student of Bachelor of Civil Engineering. He is Financial Manager of RM1
Shop.

Tong Lip Yat: v has experience from his part time job in night market stall. He can find
the supply of the products with better quality and cheaper price. He is an undergraduate
student of Bachelor of Civil Engineering. Operation and Product Manager. Focus on
demand for each kind of curry fish ball and roti to know how much to supply.

6.2 Plan of operation:

Form of ownership chosen and reasoning
Partnership
Our group was founded by five partners because it is easy to setup and we can
management together and also share the responsibility. To provide a good products and
services, we combine all the skill, knowledge and experience that we have. Five of us
will take turn in order to run our business.
Reasons for Partnership
Simple to establish. Partnership is simple and inexpensive to establish.
Division of profits. The profits are divided to the partners consistently with the
partnership agreement without violating the rights of any partners.
Flexibility. Partnership easily to change any decision to handle the market condition.
6.3 Organization Chart:

Director
(Edmund Tiew
Siew Jun)

Secretary
(Chan Yue
Ni)

Marketing
Manager
(Chong Ee
Beng)

Financial
Manager
(Tay Mun Wei)

Operation
Manager
(Tong Lip

Yat)

6.4. Decision making authority

To operate Mini Bakery, that was many decision need to make such as type of selling
products, raw materials, price of each product and other. The decision making normally is
based on voting between five of us and the director will make the final decision to
prevent dispute between us.

6.5 Compensation and benefits package

The net profit will share between five of us as our personal income.

7.1 Assumption:
The key assumptions to be used in our financial projections are the sales volumes, selling
price, fixed cost and variable cost. We use all the amounts to calculate out the income
statements and cash flow statement.
Financial Statements
Income Statement:
9th &10th January. 2017
Sales
Less: Sales Return
Net Sales
Less: Cost Of Goods Sold
Opening stock
Add: purchase
Less: purchase return
Less: closing stock
Gross Profit
Less: Expenses
Rent Expense

RM

RM
318.00
(0)
318.00

0
260.85
(0)
(0)

(260.85)
57.15

(100.00)

(100.00)
(42.85)

Net Profit

7.5 Cash Flow Statement:

DAY

Day 1
(RM)

Day 2
(RM)

Total
(RM)

Cash inflow:
equity cash flow
cash sales
Total Cash inflow
Cash Outflow:
Operation Expenditure:
Materials
Business Registration
Total Cash Outflow
Cash Surplus/Deficit
Beginning Cash Balance
Ending Cash Balance

200.00
183.00
383.00

383.00
135.00
518.00

159.35
50.00
209.35
173.35
200.00
(23.65)

101.50
50.00
151.50
366.50
383.00
(16.50)

318.00

260.85
100.00
360.85

(42.85)

7.3 Break-Even Analysis:

Fixed Cost = RM 100.00

Variable Cost = RM 260.85
Quantity of 2 products produced = 418 units
Selling Price per Unit = RM 1.00
RM 260.85

Variable Cost per Unit =

= RM 0.62

418
Break-Even Volume (unit) =
Total

Cost

Selling Price per UnitVariable Cost per Unit

RM 100
RM 1.00 RM 0.62

RM 50.00
RM 1RM 0.001
= 263.15units 264 units

Expected Net Sales = RM360.85

Contribution margin =

RM 260.85
=
RM 360.85

Variable Cost
Expected Net Sales

= 0.72

So, the Best Nya company uses RM 0.72 out of every sales to cover variable
cost, leaving (RM 1.00 RM 0.72), RM 0.28 for contribution margin to cover
fixed cost and make a profit,
Total

Break-Even Sales (RM)

Cost

Contribution Margin

RM 100.00

0.28

50.00
0.43
= RM 357.14 RM 357.20

Break-Even Chart, RM1 Shop

600
500
400
Income and Expenses (RM)

Fixed Expense
Sales

300

Variable Cost

200
100
0
0 100200300400500600
Sale Volume