ENTREPRENEURSHIP (CIX2005)

FINAL ASSIGNMENT : BUSINESS PLAN OF GEAR SHOES STATION SDN

BHD

GROUP1
THURSDAY (3.00PM - 4.00PM)
NO NAME OF GROUP MEMBERS MATRIC NO.

1. HAFIZAH NORHAKIMAH BINTI MUHAMAD ISA CIB 170032

2. NUR AQILAH HANANI BINTI AZHAR CIB 170079

3. FATIMAH NORHANI BINTI JEINIEH CIB 170028

4. DIVIYAH A/P KOORONATHAN CIB 170025

5. NUR DANIA AMIRAH BT ABDUL AZIZ CIB 170081

6. MD NUR ALIF NARBAWI BIN CHE YAHAYA CIA 170070

7. MAHFUZUR RAHMAN LIEON CIB160712

TABLE OF CONTENTS

NO CONTENTS PAGES

1.0 EXECUTIVE SUMMARY

2.0 INDUSTRY ANALYSIS

3.0 COMPANY DESCRIPTION

4.0 MARKET ANALYSIS

5.0 THE ECONOMIC OF BUSINESS

REVENUE DRIVERS

6.0 MARKETING PLAN

7.0 DESIGN AND DEVELOPMENT

8.0 OPERATIONS PLAN

9.0 MANAGEMENT TEAM AND COMPANY

STRUCTURE

10.0 OVERALL SCHEDULE

11.0 FINANCIAL PROJECTION

12.0 CONCLUSION
 1.0 EXECUTIVE SUMMARY

The global population is estimated at 7,346,235,000 and almost 99.5% of that amount have
footwear on. The global footwear market is multi-billion dollar industry. Footwear in its purest
form is a necessity as it provides protection to one’s feet from the uneven surfaces that one is
walking on. It is therefore logical to tap into this gold mine and take advantage of the huge
potential that may arise from it. A company that provides auxiliary services for these products,
especially luxurious branded shoes, providing care, repair and maintenance is not only a
potentially huge profitable business, but also has the opportunity to be a new industry.

The maintenance and care for footwear has been around since the first shoe has been created. It is
very common, especially in the West, to have the footwear cleansed and “shined” on the sidewalks,
bars or even train stations by a “shoe boy”. However, this proposal aims to create a systemized
service ran by a company that provides professional care and maintenance for the footwear.

The shoe repair and cleaning industry is big and growing rapidly in USA. The pop culture and
trends have also caught on in Malaysia. As a result, more and more customers are demanding a
dependable shoe cleaning and repair service in Malaysia.

Gear Shoes Station aims to provide its clients with a professional repair and refurbishing of any
kind of footwear, at any state of condition and provide an excellent result with guarantee.
Moreover, the company will provide a delivery service for serviced products to provide
convenience to its clients.

The site of the company will be at Bangsar, Kuala Lumpur and has the target market are the
nearby locations situated around the area. As for competitors, direct competitors are currently
existing companies providing similar services which are only Cobblerman and Mister Minute.
Although this industry is a niche, the number of existing companies in the entirety of Malaysia is
extremely low, which provides us a huge opportunity to take the market.

2.0 INDUSTRY ANALYSIS

Shoes are considered necessary for survival of humans. Not only do shoes protect us, they
are also used regularly as fashion or to look good. So, shoes serve a double purpose. Our shoes
now are an important part of our outfit and they help us to make a fashion statement. Footwear is
set to generate a revenue of US$62,472m in 2019 in Asia, which indicates that the market is
extremely important and competitive. The rise in demand for shoe cleaning and maintaining
services has led to the birth of the shoe care service industry. Conventional off the shelf shoe
cleaning products are no longer enough for consumers due to the stress of time.
This rising industry is growing rapidly around the world, especially in the US. The phenomenon of
having “Fresh Sneakers” has driven the industry to grow so fast. This is because clean
new-looking sneakers, especially white ones, are becoming increasingly fashionable to the modern
teens and young adults. Pop culture and fashion trends of the modern times have led to this
phenomenon. Young adults and teens are encouraged by what they see in social media, movies and
TV shows. Social media is one of the largest influencers in fashion trends around the world.
People want to wear what the fashion icons are wearing at the moment. Importantly, clean and
mostly white shoes are trending at the moment.

As a result, consumers demand white shoes and fancy sneakers more. This has led to the birth of
the shoe cleaning service industry. Consumers realized that the off-the-shelf cleaning products are
not enough to keep their shoes “fresh” on a regular basis. Consumers demand a professional shoe
cleaning service they can depend on. As a result, shoe cleaning and repair services have popped up
all over the US. There are 4073 businesses around the USA providing shoe cleaning services.
Furthermore, the shoe cleaning service has generated US$406m in revenue in 2019.

Another reason for the rise of this industry includes the rise of sneaker prices around the world.
This has led to consumers considering shoes a valuable commodity. Consumers want to retain the
value of these precious sneakers. More and more brands are now producing limited edition
expensive shoes that not only retain their value but sometimes also increases in value.

However, in Malaysia, the shoe cleaning industry is still emerging. With only few dependable
services in KL, there is an opportunity to penetrate the Malaysian market and become a
prominent brand. This pop culture phenomenon has reached Malaysia and young people in
Malaysia are consuming a lot of these expensive footwear. Brands like Adidas are dominating the
footwear market with limited edition and retro sneakers. The Yeezy line at Adidas is usually sold
out on the first day as soon as it is launched.

As a result, consumers in Malaysia now demand a dependable shoe cleaning and repair service
that will help consumers repair or have their shoes cleaned. With the help of professionals,
consumers will be able to get the satisfaction they demand.
3.0 COMPANY DESCRIPTION

A) GENERAL DESCRIPTION

I. Name Of Company : Gear Shoes Station Sdn. Bhd.

II. Location : No 23, Jalan Telawi Bangsar 3, 50603 Kuala Lumpur.
III. Telephone Number : +03- 7967 3502
IV. Fax Number : +03- 7967 3581
 V. Email Address : ​gearshoes@gmail.com
VI. Websites : ​www.gearshoes.com
VII. Operations Hour : 9.00am - 6.00pm (Monday - Saturday)
B)​ HISTORY OF COMPANY

Shoes (clothing) are among one of the four basic necessities of life. Any human being walking
on this planet is likely to have on footwear. There are many types of shoes such as loafers,
sneakers , boots, heels, court shoes and mules. Shoes are made up of many different materials as
pure or faux leather, rubber or fabric. Based on a research, revenue in the Footwear segment for
Asia amounts to US$62,472m in 2019. This shows how essential shoes are to all of us. The
number of wearers is expected to reach 1,698.9 millions by the year 2023.

By knowing how vitally important shoes are in our daily lives, it is crucial for us to be confident
and comfortable while wearing the shoes. Dirty and broken shoes are some of the factors that
could obstruct comfort and confidence. That is why we came up with this business idea which is
to clean and fix your shoes in order to restore its values.

This idea arised when we realised how hard it is to find a shoe cleaning service nearby. As
students , we are always occupied with tests, presentations, assignments and other daily tasks.
We have almost no time to supervise and manage our shoes cleanliness. It is important to keep
our shoes clean to maintain health and prevent diseases. This problem has been one of the
driving forces that has pushed us to execute this idea because our main goal is to help occupied
and busy people to maintain the cleanliness of their shoes without having to put too much effort
on it..
Everyone has most likely been in a situation where their favourite shoes rip or crack. Our
services include fixing and saving your shoes so that you could keep your favourite and not
having to get new ones.

C)​ OUR MISSION STATEMENT

Our mission is to establish a shoe cleaning and repairing service to assist busy students and
workers in maintaining the cleanliness and the good condition of their shoes. Our aim is also to
provide a better service to our clients with the best touch of our expertise.

D)​ OUR VISION

Our vision is to be a market leader in Malaysia in shoes cleaning and repairing industry by 2035.

E​) TAGLINE
Our tagline is “EVERYONE DESERVE CLEAN SHOES TO WEAR”

F)​ OUR PRODUCT OFFERING

Gear Shoes Station is in the shoe repair line of business to repair and refurbish shoes for
everyone. We are fixed to service a broad range of clients in and around our shop location. Every
services that we are offering are permitted by law of the Malaysian government in order to
prevent difficulties and to achieve our business aim and ambition.

Our services include the signature cleaning service, repair service and also delivery service.
What makes us different than other competitors is that we offer both repair and cleaning service
at the same time. We also offer delivery service to deliver your cleaned and fixed shoes right at
your doorsteps.

The charge for our services are listed as below :

● Package A (Shoe repairing) ​ = RM 30
● Package B (Shoe cleaning) ​= RM 20
● Package C (Shoe repairing & cleaning) = ​RM 40
● Delivery service ​ = RM 10 (Klang Valley) & RM 5 (Bangsar)

We are targeting customers who are too occupied with work or school without looking at the
level of income because our aim is to help people maintain the cleanliness and the comfort of
their shoes despite their busy schedule without charging too much. Most importantly, it is
affordable to students who require our services.
4.0 MARKET ANALYSIS

4.1 Market Segmentation

Market segmentation ​is the process of dividing a market of potential customers
into groups, or segments, based on different characteristics. For example ,
demographic, psychographic and etc. In our company , we used three different
approaches for market segmentation which is demographic , psychographic and
geography.
i) Demographic
Demographic segment is a division of a population based on variables for example
age, gender, family size, income, occupation, religion, race and nationality. Our
target market for demographic contains five main types of variables in
demographic segmentation .
● Age
As for age, our target customer based on age 15 and above .This is because
Gear Shoes Station have a wider targeted customers. From teens, adults and
old folks, need and will seek our service.
● Gender
Gear Shoes Station targeted customers to both male and female. We can
repair both gender shoes which is from loafers, sneakers to sandals , heels
and others.
● Income
Because Gear Shoes Station set a very affordable price, our target
customers based on income is flexible . From customers who earns a low
income to high income.
 ● Religion race and nationality
Gear Shoes Station targeted customers to varieties of religion , and
nationality.

ii) Psychographic
Psychographic segmentation is a method used to group prospective, current or
previous customers by their shared personality traits, beliefs, values, attitudes,
interests, and lifestyles and other factors. Our targeted customers based on
psychographic segment are lifestyle , personality traits, attitude and social status.

● ​Lifestyle
Gear shoes company targeted customers based on lifestyle is we focussed and
target to those who have a lifestyle career. Women and men who have a career
will always find its way to repair their working shoes. This is because they tend
to wear the same shoes every single day especially to those who works in a
manufacturing company and have their own uniforms.

● ​Personality Traits
Gear shoes company targeted customers based on its personality traits that is
coherence with the service ,brand and store image that suits with their
personality . Our company personality traits is flexible and modernized repair
shoes company. Even we set an affordable price but still we remain as a
company who repair shoes with a systematically operation and modern concept.
 As for this, we can see that our targeted customer based on personality traits is
more on customers who loves systematic and neat.

iii) Geographic Segmentation

Geographic segmentation is when a business divides its market on the basis of
geography. There are several ways that a market can be geographically segmented.
You can divide your market by geographical areas, such as by city, county, state,
region, (like the West Coast), country, or international region, (like Asia)
Because our store is located at Bangsar Kuala Lumpur , our targeted customers is
people who lived near Bangsar and Kuala Lumpur state.

4.2 Competitor Analysis

Every company have its own competitor , as for Gear Shoes Station our competitors
divided into two which is direct and indirect
● ​Direct Competitors
Direct competition is a situation in which two or more businesses offer products
or services that are essentially the same; as such, the businesses are competing
for the same potential market
Our direct competitors :
1. Cobblerman
2. Mister Minit

1. Cobblerman Shop
 Figure 4.1 Cobblerman Shop
Cobblerman is a shoe repair shop that required the similar service as Gear Shoes Station.
Their price allocation also similar which is RM 25- 30 per shoes. Their store location is at
Jaya One near Jalan Universiti, Bangsar . Because of its location, types of service and its
allocation of price they are considered as a direct competitors.

2. ​ ​Mister Minit

Figure 4.2 Mister Minit Shop

Mister minit is a direct competitor, even though their price allocation is slightly higher,
still they’re considered as a direct competitor because they provide the same service and a
famous shoe repair shop that is trustworthy to society . Their location also in Bangsar
which is near to Gear Shoes Station . This is why Mister Minit still considered as a direct
competitors.
● Indirect Competitors
Indirect competition is competition between companies that make slightly
different products but target the same consumers. Indirect competitors will target
the same group of customers and they also aim to satisfy the similar needs.
Our indirect competitors is a shoe selling store :
1. Esarli

2. Bata
5.0 THE ECONOMIC OF BUSINESS REVENUE DRIVERS

5.1 REVENUE DRIVER & PRODUCT PRICE

Revenue Drivers Competitor’s situation Gear Shoes Station Sdn Bhd

(Mister Minit )

Product Price Shoe Repair – RM 35 Package A

Shoe Cleaning – RM 25 Shoe Repair – RM 30

TOTAL = RM 60 Package B
Shoe Cleaning – RM 20

Package C
Shoe Repair & Shoe Cleaning
RM 40

Delivery Service :
Bangsar = RM 5
Klang Valley = RM 10

Product Cost -Raw material from a wholesaler

 - such as lace, heels, leather and
etc.
- Manufacturing overhead such as
rental, utility, maintenance and
etc.

Sales Volume -high margin, low - gain and increase the revenue by
volume lower product price which bring
to high sale volume
( low margin , high volume )

5.2 PROFIT MARGIN

​ASSUMPTION:
1) The sales for first year of business will be 10800 units with the product price
RM 30 for package A, 13200 units with the product price RM 25 package B and
14400 units with the product price RM 40 for package C.
2) The cost of goods sold will be Rm 894000 for the first year.
3) The net profit will be RM 63440 for the year.

Profit Margin Formula Calculation

Gross profit margin Sales – Cost of goods sold RM 1,230,000 – RM 894,000

Total Sales RM 1,230,000

RM 336,000
RM 1230000

= 0.27
 = 27 %

Net Profit margin Net Profit RM 63,440

Sales RM 1,230,000

=0.05
=5 %

5.3 FIXED & VARIABLE COST ( YEARLY)

VARIABLE COST FIXED COST

1. Raw material: RM 48,000 1. Transportation=RM 1800

2. Packaging: RM 12,000 2. Insurance = RM3600
4. Rental = RM 3600
5. Depreciation = RM 2500
6. Advertising Cost = RM 3000
TOTAL = RM 60000 7.Telecommunication=RM1200
8. Utilities = RM 2400

Total = RM 18100

​ alary:
S
Director = RM 36000.00 ( RM 3000 monthly)

Deputy Director = RM 33600 ( RM 2800 Monthly)

 Manager / HOD (4) = RM 120000 ( RM 2500 each
manager monthly)

Workers (2) = RM24000 ( RM 1000 each person

monthly)

Total Salary: RM 213600

TOTAL = RM 231,700.00 yearly

5.4 OPERATING LEVERAGE

● Operating Leverage = [ Quantity Sales x ( Unit Price – Variable Cost per Unit ) ]
​

/
Quantity Sales x (Unit Price – Variable Cost per unit) –
Fixed Operating Cost

❏ ​ Package A - Shoe Repair = RM 30

Operating Leverage of Gear Shoe = [ 10800 x ( RM 30 – RM 6 ) / [ 10800

x ( RM 30 – RM 6 ) – RM 231700 ]

= RM 259200 / RM 27500
 = 9.43 OR 943 %

A 10 % increase in revenue should yield a 94 % increase in ​operating income.

❏ ​Package B - Shoe Cleaning = RM 25

​ ​Operating Leverage of Gear Shoe = [ 13200 x ( RM 25 – RM 5 ) / [

13200 x ( RM 25 – RM 5 ) – RM
231700 ]

= RM 264000 / RM 32300

= 8.17 OR 817%

A 10 % increase in revenue should yield a 82 % increase in ​operating income.

❏ ​Package C Shoe Repair & Shoe Cleaning = RM 40

​ ​Operating Leverage of Gear Shoe = [ 14400 x ( RM 40 – RM 4 ) / [

14400 x ( RM 40 – RM 4 ) –
RM231700 ]

= RM 518400 / RM 286700

= 1.81 OR 181%

A 10 % increase in revenue should yield a 18 % increase in ​operating income.

● Companies with high operating leverage must cover a larger amount of
fixed costs each month regardless of whether they sell any units of
product.

● Low- operating- leverage companies may have high costs that vary
directly with their sales but have lower fixed costs to cover each month.

● The operating leverage formula can show how a company’s costs and
show that reducing fixed costs can increase profits without changing
sales quantity, contribution margin or selling price.
STARTUP COST

ITEMS START UP COST

Machine ( Shoe Repair Machinery and Shoe RM 30,000.00

Polishing Cleaning Machine)

Furniture and Fittings RM 8,000.00

Store equipment (cash register, security RM 7,000.00

(CCTV) , ventilation)

Business Registration RM 500.00

Insurance (first payment) RM 5,000.00

Rentals Deposits +1 RM 4,000.00

Marketing Promotion (first opening) RM 3,000.00

Utilities & Telecommunication RM 2,500.00

Inventory (purchase of footwear RM 10,000.00

repair,leather,refurbishing tools etc.)

Shop Facility and Design RM5,000.00

Salary RM13,000.00
Miscellaneous Expenses RM 5,000.00

TOTAL RM 93,000.00
 BREAK – EVEN ANALYSIS

Cost = Income

Package A
RM 6 (number of production sold) + RM RM 231700 = RM 30 (number of product
sold)

Let number of product sold = X

6 X + RM231700 = 30 X
24 X = RM 231700
X = 9654.17 @ 9654 Units

Break even cost = RM 30 x 9654 Units

= ​RM 289620

Package B
RM 5 (number of production sold) + RM RM 231700 = RM 25 (number of product
sold)

Let number of product sold = X

5 X + RM231700 = 25 X
20 X = RM 231700
X = 11585 Units
Break even cost = RM 25 x 11585 Units
= ​RM 289625

Package C

RM 4 (number of production sold) + RM RM 231700 = RM 40 (number of product

sold)

Let number of product sold = X

4 X + RM231700 = 40 X
36 X = RM 231700
X = 6436.11 @ 6436 Units

Break even cost = RM 40 x 6436 Units

= ​RM 257440

● Break Even Analysis is used to determine the number of units or dollars of

revenue needed to cover total costs ( fixed and variable costs )
6.0 MARKETING PLAN
​6.1 ​Marketing Strategy
A marketing strategy is a business's overall game plan for reaching people and turning
them into customers of the product or service that the business provides. The marketing
strategy of a company contains the company’s ​value proposition​, key marketing
messages, information on the target customer and other high-level elements.
● Utilize the marketing tools (advertisement in social media, flyers)
- ​By utilizing the marketing tools which is advertisement,social
media,flyers, radio advertisement and others, this will bring in new
customers . They will aware about Gear Shoes Station and have a
high possibilities to increase our sales company.

● Promotional activities to increase company profits.

- ​Combine Package (Package C) from only RM 40 ringgit . RM 15 less
, for customers who chose package C which is cleaning shoes and
repair.
- ​Discount up to 20% prior every recommendations by friends, family
and other acquaintance.
 - Birthday Treats (Cleaning All Your Shoes) , to customers who have
their birthday , they will got a free cleaning shoes service on the day
of their birthday by signing up our membership.

● ​Brand ambassador to promote our service and for well aware of the
targeted customers.

Market Positioning
Marketing positioning leads to the consumer’s thoughts and perception of a
brand or product between competing brands or products. Market positioning
refers to the process of establishing the image or identity of a brand or product
so that consumers accepted it in a certain way.

Market position are divided into two categories which is cost leadership and
differentiation. For Gear Shoes Station, we chose cost leadership strategy attempts to
position itself in the minds of the consumers as a company that provides products the
consumers which at a price that is lower than competing and competitors products
available in the marketplace.
Analysis SWOT
Strength
● Gear Shoes Station set an
affordable price with economic
pricing strategy which suits with
a standard income.
● Eventhough with an affordable
price, Gear Shoes Station offers a
high quality service with the
usage of high quality materials.
● Gear Shoes Station requires an
efficient service, customers wont
wait more than 1 days to pick up
their shoes.
Weakness
● New in the marketplace,
customers will not well aware
about our existing service.
● Lack of experience in the
marketplace. Because of Gear
Shoes Station is new to the
market so it will have no
experience in maintaining its
position and profits in the
marketplace.
 Opportunities Threats

● Because of services that Gear ● Threats that Gear Shoes Station

Shoes Station provide suits with
with a lot of segment in
demographic . We have a wide
range of potential customers
● Gear Shoes Station store location
are strategic . Which is in the
middle of city , near universities ,
work buildings, school, shopping
complex and houses.
will be faced is competitors.
Direct and indirect competitors
that were already matured and
famouse in the marketplace .
These competitors are
well-known and already got
customers trustworthy.

MARKETING MIX
Product
● Gear Shoes Station provide services
- Repairing all types of shoes and all types of brokerage.
- Cleaning all types of shoes.
- Gear shoes also provide delivery service to those who can’t pick up their repaired
or cleaned shoes .
Price
● Gear Station provide an economic pricing strategy which suits with customers who have
a standard income level.
● List of our services and price :
 - Package A (Shoe repairing) ​ = RM 30
- Package B (Shoe cleaning) ​= RM 20
- Package C (Shoe repairing & cleaning) = ​RM 40
- Delivery service​ = RM 10 (Klang Valley) & RM 5
(Bangsar)

Place
● Gear Shoes Station store located in the Klang Valley/ Bangsar .
● It is in the middle of city which near universities , work buildings, school, shopping
complex and houses.
● Thus, Gear Shoes Station have a wide range of potential cutomers.

Promotion

● Combine Package (Package C) from only RM 40 ringgit . RM 15 less , for

customers who chose package C which is cleaning shoes and repair.
● Discount up to 20% prior every recommendations by friends, family and other
acquaintance.
● Birthday Treats (Cleaning All Your Shoes) , to customers who have their birthday
, they will got a free cleaning shoes service on the day of their birthday by signing
up our membership.
7.0 DESIGN AND DEVELOPMENT

7.1 Development status and tasks

Gear Shoes Station Sdn Bhd is a business that specializes in the repairing of both
women’s and men’s shoes. Through its store, the Company intends to provide
services, which will include cleaning, fixing and delivery services.

The internet has given shoe repair shop owners the ability to market their services
to a much wide of customer base. In the past, shoe repair was largely limited to
the repair shops geographic territory. But with an effective business website, shoe
repair business can attract a national customer base and leverage shipping to
conduct remote business relationships.
 Thus, Gear Shoes Station Sdn Bhd will introduce an online ordering platform that
can give rise to sales. Increasing in the sales will allow the business to gain
profitability very quickly. The Company will aggressively provide repairing shoes
services to its target market, which is customer that have standard level of
income.

7.2 Difficulties and risks

Below are several challenges and risks that Gear Shoes Station Sdn Bhd might
face;

7.2.1 Time Consuming

In the process of repairing customer shoes, there might be some mistake
that workers do. For example, the thread that the worker used does not fit
with the customers’ shoes colour. So, the worker needs to redo their work
and it will consume more time to finish repair customer shoes. Thus, it is
important to make sure the workers make their work correctly to avoid any
mistakes.

7.2.2 Cost
The raw material that Gear Shoes Station Sdn Bhd buy might have
different price and quality. This is because, different sellers offer different
price with uncertain quality. By having our own company supplier, the
price and also the quality will be the same. Therefore, there will be no
issue regarding the cost.
 7.2.3 Lack of skills and Knowledge
Finally, workers that lack in skills and knowledge especially in shoes
repair business are also one of our challenges. For example, workers that
failed in identify brands of customer shoes will cause delay in repairing
our customer shoes. Thus, to avoid this from happen, it is important to
hired a workers that have knowledge and skills including worker ability to
recognize brands and models of a wide variety of shoes. Second, it is also
important to hire workers that have basic requirement of skills and
techniques of shoe repair such as sewing, gluing, and mending. Third,
excellent vision and hand skilfulness. Lastly, Customer service skills.

7.3 Cost
7.3.1 Store facility and design
Gear Shoes Station Enterprises cost for designing the shop and business
facilities is RM 5,000.00

7.3.3 Overall Start-up cost

Gear Shoes Station Enterprises start-up cost is RM 93,000.00

7.4 Proprietary Issue

Gear Shoes Station Sdn Bhd will need to obtain patent, trademark, and copyright
for our business to prevent competition from duplicating the image that may
 confuse our consumers. Besides, we also need to obtain necessary permits and
licenses.

8.0 OPERATIONS PLAN

8.1 The process of getting service *will insert soon
8.2 Floor plan
8.3 Location
The business location for Gear Shoes Station SDN BHD will be in Jalan Telawi
Bangsar, Kuala Lumpur. In order to attract more customers to come to our shops,
the store is located on remote areas and close to restaurants. Besides, the shops
will be remodel and furnished to provide workers and customers a comfortable
area. The operating space in our shops will consists of table, machine, counter,
and rack.
8.4 Facilities and equipment
Gear Shoe Station ​has several facilities & equipment available such as shoe
servicing machines, furniture and fittings ie closets that put shoes we received
from customers, storages such as cash cases, security tools CCTV and air
conditioning for the convenience of employees and customers come to our store.
Because of our storerooms we have a special storage room, where we put manuals
for shoe servicing process, namely shoe cleaning and shoe polish, brushes and so
on and hygiene items.
8.5 Workers
Gear Shoes Station has 7 workers will held the operations which is handle also the
administration of this company. The Gear Station has a total of 7 employees
where they operate footwear sales, provide shoe repair services and wash shoes
from customers and clients who come to our store.

Name of Employee Age Wages

Hafizah Nor Hakimah 21 RM1,000.00

Aqilah Hanani Azhar 24 RM1,000.00

Dania Amirah 21 RM1,000.00

 Fatimah Norhani 23 RM1,000.00

Diviyah 21 RM1,000.00

Mahfuzur 22 RM1,000.00

Alif Narbawi 22 RM1,000.00

Adam Nawab 20 RM1,000.00

8.6 Operation hours

Gear Shoes Station will start the operation from 10.00am - 9.00pm which is from
Monday to Sunday. This operation hours was in line with the business operating
in the Bangsar area designated by Kuala Lumpur City Hall (DBKL) throughout
the Kuala Lumpur.

Days Operation Time

Monday 10:00 am – 9:00pm

Tuesday 10:00 am – 9:00pm

Wednesday 10:00 am – 9:00pm

Thursday 10:00 am – 9:00pm

Friday 10:00 am – 9:00pm

Saturday 10:00 am – 9:00pm

Sunday 10:00 am – 9:00pm

9.0 MANAGEMENT TEAM AND COMPANY STRUCTURE

9.1 Management Summary

Gear Shoes Station Sdn Bhd is a standard shoe repair business that wants to
provide the best quality to our customers and also we will ensure to deliver the
best services by having a good company structure. We believe that strong
leadership in management team will make our business more successful in the
future. Hiring people who are qualified, honest, customer centric and are ready to
work and serve for our company will help us build a prosperous business. As a
matter of fact, we are decide to use a profit sharing based arrangement and if we
will incur a loss it should be divided equally among us. In management team, we
do have six senior management staff that who are also our board of directors.

Therefore, below are positions that we have in our management team;

● Chief Executive Officer
● Chief Financial Officer
● Head of Department of Sales and Marketing
● Head of Department Operations
● Head of Department Purchasing
● Shoes and Footwear repair Experts
● Shop Manager
● Salesperson
9.2 Organizational Structure
9.3 Roles and Responsibilities

9.3.1 Chief Executive Officer

The Chief Executive Officer (CEO) has overall responsibility for creating,
planning, implementing, and integrating the strategic direction of an
organization. It is also the responsibility of the CEO to ensure that the
organization's leadership maintains constant awareness of both the
external and internal competitive landscape, opportunities for expansion,
customer base, markets, new industry developments and standards, and so
forth.

9.3.2 Chief Financial Officer

The chief financial officer position is accountable for the administrative,
financial, and risk management operations of the company, to include the
development of a financial and operational strategy​, metrics tied to that
strategy, and the ongoing development and monitoring of control systems
designed to preserve company assets and report accurate financial results.

9.3.3 Head of Department of Sales and Marketing

Do researching and developing marketing opportunities and plans;
implementing sales plans; managing staff in order to fulfil business
 development activities. Besides, they also need to do managerial duties to
achieve marketing and sales human resource goals. In addition to that, it is
important to identify trends and determine system improvements.

9.3.4 Head of Department Operations

Director of Operation​s need to organize and oversee the daily operations
of the business. It is important to ensure business is well-coordinated and
productive by organize its procedures and coaching its people. The area of
responsibility for this role is very wide and thus requires thorough
knowledge of various company processes.

9.3.5 Head of Department Purchasing

Purchasing Officer task is to buy material that are need for our company’s
day-to-day operations. It is important to review the prices and quality of
the material and ensure have enough stock. Purchasing Officer
responsibilities include evaluating vendors, negotiating contracts and
preparing reports. For this role, in order to identifying the most profitable
offers, it is important to have good knowledge of market research, along
with solid analytical skills. Most important thing is to ensure raw material
is high quality and delivered on time. Thus, Purchasing Officer need to
maintain good relationships with key suppliers.

9.3.6 Shop Manager

 Shop Manager basically responsible for the overall store management. The
responsibilities of shop manager is to enhance customer satisfaction, meet
sales and profitability goals and manage staff effectively.

9.3.7 Shoes and Footwear repair Experts

The cobbler is responsible for repairing and refurbishing any type of
shoes. Thus, it is important for Cobblers to have basic skills in repairing
shoes and know most of shoes brand name.

9.3.8 Salesperson
Salesperson need to aggressively seek out and engage customer prospects.
Besides, salesperson need to present, promote and sell products using solid
arguments to existing and prospective customers. In order to meet with
customer need, a sales person need to perform cost-benefit and needs
analysis of existing or potential customers.

9.4 Management Team

9.4.1 Chief Executive Officer

Name: Hafizah Norhakimah Binti Mohd Isa
Educational Background: MIT Sloan School of Management
 Working Experienced:
i. Experienced as Internal Auditor at Sc Sdn Bhd

9.4.2 Chief Financial Officer

Name: Nur Aqilah Hanani Binti Azhar
Educational Background: Degree,The London School of Economics and
Political Science(LSE)
Working Experienced:
i. Experienced as an Auditor at TL Wong & Co

9.4.3 Head of Department of Sales and Marketing

Name: Nur Dania Amirah Bt Abdul Aziz
Educational Background:Degree, Universiti Putra Malaysia
Working Experienced:
i. Experienced as Marketing Manager at Gardenia Sales & Distribution
Sdn Bhd

9.4.4 Head of Department Operations

Name: Fatimah Norhani Binti Jeinieh
Educational Background: Degree,The University of Queensland
Working Experienced:
i. Experienced as Operations Manager at Media Prima Bhd

9.4.5 Head of Department Purchasing

 Name: Diviyah A/P Kooronathan
Educational Background: Degree,University of Malaya (UM)
Working Experienced:
i. Experienced as Operation Manager at Goh Office Supplies Sdn Bhd

9.4.6 Shoes and Footwear repair Experts

Name: Mahfuzur
Educational Background: Sijil Kemahiran Pertukangan Tahap 4
Working Experienced:
i. Experience as a cobbler expert at 99 Station shop

9.4.7 Shop Manager

Name: Md Nur Alif Narbawi Bin Che Yahaya
Educational Background: Degree,Universiti Teknologi Mara (UiTM)
Working Experienced:
i. Experienced as an agent insurances for 3 years with Prudential.

9.4.8 Salesperson
Name: Adam Haikal
Educational Background: Sijil Tinggi Pelajaran Malaysia
Working Experienced: i. No experience
10.0 OVERALL SCHEDULE
During the 1st week of January in 2019, our company members came out with our
business idea which was to sell shoes and make a shoe cleaning services for the children,
university students and officers. This idea was generated by all of the members due to the
problem of space-lacking of the university students that stay inside the hostel. After the
business idea coming out, business plan outlined was prepared in the first 2 weeks of
February, 2019 through the discussion of all the members. The business plan outlined
simply discusses the mission, vision, business concept and model, uniqueness of our
products and marketing plan. This business plan outlined is one of the guidelines for us to
well understand the direction of our business.

On the 1st and 2nd week of process, Dania as the marketing manager set up and designed
a website from Google in order to promote our products internationally. In the website,
there are executive summary about our products with the contact for services. Next, our
business plan was completed by our secretary (administration), Aqilah on the 3rd week of
February. The business plan will be distributed to all the departments so that all the
related process in their department can go on smoothly. In the following weeks of the
month, Aqilah, as the financial managers will in charge to secure critical financing by
making loan to the bank. The loan is going to use for launching our business. Then,
Dania will lead the marketing department to deal with the suppliers of fold-able table on
the April of 2019. Our company aim to get along with various suppliers that come from
different countries so that we can provide plenty of choices in fold-able tables on bed for
our consumers.

On the 2nd week of April 2019, incorporation of venture will be launched by our
company’s stakeholder, Lieon accompanied by our director, Emma. After we start the
operation of our company, we wish to get the first sale in the month of May 2019.
Diviyah as a sales manager will increase the sales of the company through the strategic
implemented.

We estimate to receive the payment of the first sales in first 2 weeks of the June of 2019.
The payment receive will be recorded by our treasurer, Aqilah.

11.0 FINANCIAL PROJECTION

11.1 Source of fund
Gear Shoes Station Sdn Bhd is a start up business that just started in the early year of
2016. We are starting our business with two founders and we got help from our friends
who just want to join us in this business. So, we do have a six senior management staff
who are also the founders of this business. At the early stage, we are decided to get our
fund by using our own money. Each of the founders will contribute RM20,000 but some
of the founders are not agreed and suggest to take a loan. Finally, we are successful to
collect a modal from each contributors amount RM60,000.

List name of the founders:

1. Nur Aqilah Hanani Bt Azhar (RM 10,000)
2. Hafizah Nor Hakimah (RM10,000)
3. Mahfuzur (RM10,000)
4. Fatimah Norhani (RM10,000)
5. Alif Narbawi (RM10,000)
6. Diviyah (RM10,000)

The profit will be divided based on the profit sharing rate. If we are incur a loss, we will
divide based on the amount of contribution.

11.2 Bank Loan

All the six founder members are agreed to take a business loan in order to add up our
capital. We are planning and do some research before deciding which bank to choose as
 we need to pay the principal with interest rate. We are looking a bank that provide us
with lower interest rates and more benefit. So, we decide to do a loan with Bank
Kerjasama Rakyat Malaysia Berhad that offer a business loan for start-up and give
benefits to the borrower and lenders. Below is the loan amortization schedule for our
business.

Our company borrow RM 60,000 from bank. Bank is charging our company 10% interest
and we will pay back to bank with annual payments made at the end of year for 5 years.

Present Value (Amount Borrow) = RM 60,000

Annual of interest rate = 10 %
Number of year = 5 years

Payments

End Beginning of- Loan Payment Interest Principal End-of-year

of year principal [ 0.10 x (1) ] [ (2) - (3) ] principal
year [ (1) - (4) ]

(1) (2) (3) (4) (5)

1 RM 60,000 RM 15827.85 RM6,000 RM 9,827.85 RM 50,172.15

2 RM 50172.15 RM 15827.85 RM 5017.22 RM 10,810.63 RM 39,361.52

3 RM 39361.52 RM 15827.85 RM 3936.15 RM 11891.70 RM 27469.82

4 RM 27469.82 RM 15827.85 RM 2746.98 RM 13080.87 RM 14388.95

5 RM 14388.95 RM 15827.85 RM 1438.90 RM 14388.95 0

11.3 Sales forecasting

2019 Sales Forecast for Gear Shoes Stations Sdn Bhd

Unit Sales Price per unit (RM) Total (RM)

Package A 10800 30.00 324000

Package B 13200 25.00 330000

Package C 14400 40.00 576000

Total 38400 1,230,000

2020Sales Forecast for Gear Shoes Stations Sdn Bhd

Unit Sales Price per unit (RM) Total (RM)

Package A 11,880 30.00 356,400

Package B 14,520 25.00 363,000

Package C 15,840 40.00 633,600

Total 42,160 1,353,000

2021 Sales Forecast for Gear Shoes Stations Sdn Bhd

Unit Sales Price per unit (RM) Total (RM)

Package A 13,068 30.00 392,040

Package B 15,972 25.00 399,300

Package C 17,424 40.00 696,960

 Total 46,464 1,488,300

11.4 INCOME STATEMENT FOR 3 YEARS

Income Statement
Gear Shoes Stations Sdn Bhd
for the Year Ended December 31, 2019
RM RM

Sales Revenue :

Package A (10,800 x RM30) 324,000

Package B (13,200 x RM25) 330,000

Package C (14,400 x RM40) 576,000

Total Sales 1,230,000

(-) Cost of Good Sold :

Package A- RM 28 x 11800 302400

Package B -RM 23 x 13,200 303600

Package C- RM 20 x 14,400 288000 (894,000)

GROSS PROFIT 336,000

(-) Operating Expenses

Utility expenses 3,500

Advertising expenses 5,500

Insurance expenses 8,600

 Rent expenses 7,000

Telecommunication expenses 2,000

Salary 213,600

Business Registration 500

Miscellaneous Expenses 10,000

TOTAL OPERATING EXPENSES (250,700)

NET PROFIT BEFORE TAX AND 85,300

INTEREST

(-) Interest expenses (10% x 60,000) (6,000)

NET PROFIT BEFORE TAX 79,300

(-)Tax (20%) (15,860)

​NET PROFIT 63,440

Income Statement
Gear Shoes Stations Sdn Bhd
for the Year Ended December 31, 2020
RM RM

Sales Revenue :

Package A (11,880 x RM30) 356,400

Package B (14,520 x RM25) 363,000

Package C (15,840 x RM40) 633,600

 Total Sales 1,353,000

(-) Cost of Good Sold :

Package A- RM 25 x 11,880 297,000

Package B - RM 20 x 14520 290,400

Package C- RM 19 x 15840 300,960 (888,360)

GROSS PROFIT ​341,640

(-) Operating Expenses

Utility expenses 2,400

Advertising expenses 3,000

Insurance expenses 3,600

Rent expenses 3,600

Telecommunication expenses 1,200

Salary 213,600

TOTAL OPERATING EXPENSES (227,400)

NET PROFIT BEFORE TAX AND 234840

INTEREST

(-) Interest expenses (10% x 60,000) (6,000)

NET PROFIT BEFORE TAX 228,840

(-)Tax (20%) (45,768)

​NET PROFIT 183,072

Income Statement
 Gear Shoes Stations Sdn Bhd
for the Year Ended December 31, 2021
RM RM

Sales Revenue :

Package A (13,068 x RM30) 392,040

Package B (15,972 x RM25) 399,300

Package C (17,424 x RM40) 696,960

Total Sales 1,488,300

(-) Cost of Good Sold :

Package A- RM 23 x 13,068 300,564

Package B -RM 19 x 15,972 303,468

Package C- RM 16 x 17,424 278,784 (882,816)

GROSS PROFIT ​605,484

(-) Operating Expenses

Utility expenses 2,400

Advertising expenses 3,000

Insurance expenses 3,600

Rent expenses 3,600

Telecommunication expenses 1,200

Salary 213,600

TOTAL OPERATING EXPENSES (227,400)

 NET PROFIT BEFORE TAX AND 378,084
INTEREST

(-) Interest expenses (10% x 60,000) (6,000)

NET PROFIT BEFORE TAX 372,084

(-)Tax (20%) (74,417)

​NET PROFIT 297,667

11.5 BALANCE SHEET FOR 3 YEARS

Balance Sheets
Gear Shoes Stations Sdn Bhd
for the Year Ended December 31, 2019
RM RM RM

Assets

Cash 42,500

Inventory 10,000

Total Current Asset 52,500

Machinery 30,000
(-) Depreciation (2,500) 27,500

Furniture & Fittings 8,000

Store Equipment 7,000

Vehicle 25,000

Total Non-Current Assets 67,500

TOTAL ASSETS 120,000

Liabilities

Loan 60,000

Equity

Owner Equity 60,000

TOTAL LIABILITIES & EQUITY 120,000

Balance Sheets
Gear Shoes Stations Sdn Bhd
for the Year Ended December 31, 2020
RM RM RM

Assets

Cash 39172.15

Inventory 11,000

Total Current Asset 50,172.15

Machinery 27,000
(-) Depreciation (3,000) 24,000

Furniture & Fittings 7,200

Store Equipment 6,300

Vehicle 22,500

Total Non-Current Assets 60,000

TOTAL ASSETS 110,172.15

Liabilities

Loan 50,172.15

Equity

Owner Equity 60,000

TOTAL LIABILITIES & EQUITY 110,172.15

Balance Sheets
Gear Shoes Stations Sdn Bhd
for the Year Ended December 31, 2021
RM RM RM

Assets

Cash 35,061.52

Inventory 11,100

Total Current Asset 46,161.52

Machinery 24,300

(-) Depreciation (3,500) 20,800

Furniture & Fittings 6,480

Store Equipment 5,670

Vehicle 20,250

Total Non-Current Assets 53,200

TOTAL ASSETS 99,361.52

Liabilities

Loan 39,361.52

Equity

Owner Equity 60,000

TOTAL LIABILITIES & EQUITY 99,361.52

11.6 STATEMENT OF CASH FLOW FOR 2 YEARS

Statement of Cash Flow

Gear Shoes Stations Sdn Bhd
for the Year Ended December 31, 2020
RM

Cash flow from operating activities

Net income 183,072

(+) Sources of Cash

Depreciation 500

Inventory (2016-20115) 1,000

Total adjustment (cash 16-15) -3,328

Net cash flow provided by operating activities 184,572

Cash flow from investing activities:

Purchase of vehicle (-2500)

Purchase of store equipment (-700)

Net cash flow provided by investing activities 3200

Cash flow from financing activities:

Long term debt 98278

Net cash flow provide by financing activities 98278

Increase in cash -3,328

Cash at the beginning of the year 42,500

Cash at the end of year 39,172

Statement of Cash Flow

Gear Shoes Stations Sdn Bhd
for the Year Ended December 31, 2021
RM

Cash flow from operating activities

Net income 297,667

(+) Sources of Cash

Depreciation 500

Inventory (2016-20115) 100

Total adjustment (cash 16-15) -4,100

Net cash flow provided by operating activities 298,267

Cash flow from investing activities:

Purchase of vehicle (-2,250)

Purchase of store equipment (1350)

Net cash flow provided by investing activities 900

Cash flow from financing activities:

Long term debt 98278

Net cash flow provide by financing activities 98278

Increase in cash -10,810

Cash at the beginning of the year 39,172

Cash at the end of year 35,062
11.7 RATIO ANALYSIS

PROFITABILITY RATIO
I. Gross profit margin = ​Sales- Cost of good sales
Sales

2016 2017 2018

1,230,000 - 894,000 1,353,000 - 888,360 1,488,300 - 882,816

1,230,000 1,353,000 1,488,300
= 0.273 = 0.343 =0.407
= ​27.3 % =​34.4% =40.7%

EXPLANATION

​II. Net profit margin = ​Net profit

Sales

2016 2017 2018

63,440 183,072 297,667

1,230,000 1,353,000 1,488,300
=0.051 =0.135 =0.200
=5.51% =13.5% =20%

EXPLANATION
ACTIVITY RATIO
I. Total asset turnover = ​ Sales
Total assets

2016 2017 2018

1,230,000 1,353,000 1,488,300

120,000 110,172.15 99,361.52
=10.25 =12.28 =14.97

EXPLANATION

II. Inventory turnover = ​ Cost of good sold

Inventory

2016 2017 2018

894,000 888,360 882,816

10,000 11,000 11,100
=89.4 =80.76 =79.53

EXPLANATION
LIQUIDITY RATIO
I. Current ratio = ​ Current assets
Current liabilities

2016 2017 2018

52,500 50,172.15 46,161.52

60,000 50,172.15 39,361.52
=0.875 =0 =1.173

EXPLANATION

II. Quick ratio = ​Current asset - inventory

Current liability

2016 2017 2018

52,500 - 10,000 50,172.15 - 11,000 46,161.52 - 11,100

60,000 50,172.15 39,361.52
=0.708 =0 =0.891