2014

“IRON BUDDIES”

ENT600: TECHNOLEOGY ENTREPRENEURSHIP

ALI IMRAN BIN MUHAMMAD ISROR 2010164091

AMIRUL KHAIRI BIN ABDUL WAHAB 2011427954

SITI AMIRAH BINTI ABDULLAH SANI 2011647896

NUR SYAHIDAH BINTI SUAHAIMI 2011893486

LECTURER: NURUL HAYANI BINTI ABD RAHMAN

GROUP : EE220 A1/A2

1/1/2014
 TABLE OF CONTENT

1.0 EXECUTIVE SUMMARY

1.1 Brief Description and Product Concept 1
1.2 Target Market and Projections 1
1.3 Competitive Advantages 2
1.4 Profitability 2
1.5 Management Team 3

2.0 PRODUCT DESCRIPTION 4

2.1 Product Detail 4
2.2 Product Application 4
2.3 Product Features 5
2.4 Product Development 6
2.5 Product Opportunities For Expansion 7

3.0 TECHNOLOGY DESCRIPTION 8

3.1 Process Operation of “Iron Buddies” 9
3.2 Future Technology 10

4.0 MARKET RESEARCH AND ANALYSIS 11

4.1 Customers 12
4.2 Market Size and Trends 12
4.2.1 Factor Affecting the Market Growth 12
4.3 Competition and Competitive Edges 12
4.3.1 Strengths and Weakness of Competitors 13
4.3.2 Comparison of the Competitor’s Pertinent Features 14
4.3.3 Comparison of the Fundamental Value of our Product 15
4.3.4 Advantages and Disadvantages of the Products 16
4.3.4.1 “Iron Buddies” safety system 16
4.3.4.2 Competitors 17
4.4 Estimated Market Share and Sales 18
4.5 Marketing Strategy 19
 4.5.1 Overall Marketing Strategy 19
4.5.2 Pricing Strategy 19
4.5.3 Sales Tactics 20
4.5.4 Service and Warranty Policy 20
4.5.5 Advertising and Promotion 20
4.5.6 Distribution 21

5.0 MANAGEMENT TEAM 22

5.1 Organization 22
5.2 Key Management Personnel 24
5.2.1 Career Highlights 24
5.2.2 Duties and Responsibilities 30
5.3 Management Compensation and Ownership 32
5.3.1 Monthly salary, share and equity invested 32
5.4 Supporting Professional Advisors and Services 33
5.4.1 Supporting services 33
5.4.2 Service Provided by the Affiliation 34

6.0 FINANCIAL PLAN 36

6.1 Start-up Cost 36
6.2 Working capital 37
6.3 Start-up capital and financing 37
6.4 Cash flow statement 38
6.5 Income statement 40
6.6 Balance sheet 41

7.0 PROJECT MILESTONES 42

8.0 CONCLUSION 43
 1.0 EXECUTIVE SUMMARY

1.1 Brief Description and Product Concepts

Malaysian citizen today realize how much important it is to have a home that is safe
to them and their children. In order to do that, many system have been created to helps people
to make sure their home is the best place to live. But, very few people realize that the
everyday tools and equipment that they use itself can actually be their enemy and potentially
harm them. To prevent the equipment to be harmful, lots of company have created new safety
system in their product. But not all product have safety precaution inside their product. This
is a disadvantage to the users that love to use their favorite product in daily.
Our product is simply a device that can be attached to the iron and alert the user if the
user left the iron in standing mode for too long. Around a few minutes of time, “Iron
Buddies” will then produce an alarming sound so that the user or other people will notice it,
so it will remind them that they have left their iron in dangerous position that can potentially
be harmful for children and other human.

1.2 Target Market and Projections

Our company targets market can be divided into two segments which are firstly, a
household field and secondly, textile manufacturer or distributor company field. “Iron
Buddies” target market is focused on to all housewife, maid and bachelor that used clothing
iron in Malaysia. This product is affordable to be selling to any people with low-wage and
student. By using low price material, the product could be sold at a suitable price.
The product’s name is one of the major effects for marketing. If the price is suitable, it
is easier for the product to be sold. But, if people don’t know about the product, they will not
buy it. So, the way to make them realize that this is an important product is by placing
advertisements at the place where the iron is sold in all store. To increase more awareness,
the advertisement will show how harmful the iron can be without the device. By showing
how much the different our product brings to the safety of their iron, they will buy this
product to include it with the new iron that they are buying or already have.

“Iron Buddies” Safety System Page 1

1.3 The Competitive Advantages

. 3A’s Enterprise is an engineering company specializing in the producing many kind of

electrical safety devices that provide the customers with high-technology product together
with many special features.
In order to compete with other safety devices that are already exist in the market. We
believe our product is able to stand out because of its unique safety feature that offers a
modern and attractive addition compare to the other pre-existing safety product. “Iron
Buddies” produce sound to alert the users, this function has never been created by the other
clothing iron company. Besides that, this product actually not an iron, but an electronic
system that can be attach to all kind of iron products. So there will be less competitive
compared to designing an actual iron product.
“Iron Buddies” will be available at all electrical and electronic hardware in Malaysia.
We will also place our product on every major textile producer or distributor company in
Malaysia. The design will come with varieties of colours to make it suitable to the body of
the user’s iron. The product is suitable for all types of iron because of its attachment system
that will fuse with every design of iron’s body and shape.

1.4 The Profitability

We fairly believe that this product will be able to gain profit after an effective safety
campaign and advertisement considering it safety approach that is believe to possess a certain
attraction to customers. The increasing of people awareness of safety will assure “Iron
Buddies” to be one of the must have important device in their house.
Furthermore, so far there is no other clothing iron related company in Malaysia that
provides the same idea and system like our product possess. The capital cost of producing
this system is low. So, we will be able to sell it at an affordable price which can be a great
factor to encourage customer to buy our product rather than risking their safety in house..

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1.5 Management Team

3A’s Enterprise is consisting of a General Manager, Marketing Manager, Research

and Development Manager and Financial Manager. Everyone in the team will play their roll
and contribute their knowledge and enthusiastic as much as possible for the product
development and the future of the company. Below is the organization chart of the
management team.

ALI IMRAN
(GENERAL MANAGER)

AMIRUL KHAIRI SITI AMIRAH NUR SYAHIDAH

(FINANCIAL MANAGER) (MARKETING MANAGER) (R&D MANAGER)

Figure 1.1: Management Team

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 2.0 PRODUCT DESCRIPTION

2.1 Product Detail

“Iron Buddies” Safety iron system is a small device which will be attached to all type
of standard clothing iron. It is powered by a DC supply such as battery. It can be come as
many colours. The size is quite small and easy to use.
The concept of “Iron Buddies” is it used timer to run the time to turn on the buzzer
where it detect the iron as idle. After the timer run for 3 full minutes, the buzzer would turn
on and alert the user to turn off the iron. The sensor would be installed at the bottom of the
iron where whenever the iron is standing position, the sensor will automatically turn on
which means the timer also start counting at that moment until it signal the buzzer to produce
an alarming sound. Basically this concept is designed for Malaysian people to make sure that
our house is perfectly safe for us and the children especially during ironing clothes.
The main component that is installed in “Iron Buddies” is electronic buzzer.
Furthermore, as to improve from the existing product, our product is install with several
sensors, batteries and electronic buzzer to detect the idle mode of the iron. When the user
stands the iron, it will indicate iron as idle. The batteries used as supply source to turn on the
electronic buzzer. Usually this type of position may be dangerous to the house’s family. So,
the electronic buzzer functions to alert the user about the iron that still turn on. Not to
mention the benefit of saving energy.

2.2 Product Applications

“Iron Buddies” is design mainly to provide a safety usage of iron. As we know, iron is
common household electrical goods. We use is daily to keep our cloth tidy, especially for the
office worker. So, it may dangers our family due to the high heat if it’s not properly handle.
As the primary end use, this product will alert the user to make sure that the iron do not left
idle longer than necessary and becoming harmful. The iron may dangers our whole family
including our lovely pet at home when it left for long where the children potentially play
around the area. It is a creative device to prevent injuries to children from hot clothing irons.

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 Besides that, it also could save your utility bills which usually cause by the equipment
such as clothing iron. Usually, it takes a certain period of time to heat up the iron before it is
ready to be use. So people tend to leave the iron in a while before actually start ironing their
cloth. This is a common scenario where this kind of behaviour could become dangerous. So,
“Iron Buddies” buzzer could also work to indicate that iron ready to be use. Significantly, this
could save the electric utility bills for our house.

2.3 Product features

These are some of the unique features of the product.

I. Electronic buzzer
 This product is different compared to other iron in the market. It came
with an electronic buzzer function as to alert the user when the iron in
the idle mode. This product offered a better safety while most of
common iron does not.
II. Use and external supply
 Electronic buzzers on the iron use an external supply which is
batteries. This could give an option for the user to decide whether to
turn on or off the buzzer. Besides, any disturbance on the main supply
do not affects the electronic buzzer.

By providing all these features, consumers tend to choose our product compared to
common iron which that could danger their family. Besides that, with some additional low
cost electrical component, these products could not be more expensive than the common iron
one. Therefore, we fairly believe the consumer would choose “Iron Buddies” to include them
with their clothing iron. Hopefully in a few years, consumer will look at “Iron Buddies” as a
must have standard addition for their iron for safety purpose.

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2.4 Product Development

The product will be tested to the market after one month of obtaining raw materials.
The promotion will give a special gift for the 100 first buyers who come through the
company. The product will be sell at RM100 including the offer for two years warranty if the
system has a problem or failed to function as well. Besides, our company will provide the
pamphlet or brochures which it contains reviews of this product. If need, to increase the
benefits of sell our product, our company will distribute the brochures or pamphlet every
months around neighborhoods residential or distribution the brochures or pamphlet around
the recreational area.

Plastic material

 Light
 Low in cost
Electronic buzzer

 Good sensitivity
 High frequency

Sensor

 Good sensitivity
 Well hidden

Coil

 Good heat conductor

 High efficiency

Figure 2.1: Product overview

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2.5 Product Opportunities for Expansion

From our product, we hope that a few future developments could be made by adding
our ideas to another purpose. For example, our system product could be practically use for
our house doors. Sometimes, we could forgot to close our doors just after enter the house. By
using the system connected to the door, the buzzer could alert the house resident to lock the
door before anything bad happen. For another application, it also could be used as the system
for our fridge. Sometimes we often left our fridge door open. Due to the high usage of
current, fridge may high up our utilities bills. Also we could lose the cold by is dissipating
through the open door through the air. By applying this product system, our utilities bills may
deductible. As in term of utilities bills, there are many electrical goods needs to use this
system such as oven door, or rice cooker or even the door of a washing machine. By doing
so, we could prove that this system is suitable to be commercialize and acceptable in the
market.

Refrigerator door
Oven door

Rice Cooker
door
Washing
machine door

Figure 2.2: Product opportunities for expansion

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 3.0 TECHNOLOGY DESCRIPTION

Prototype IRON BUDDY

Side View
+ Battery : use only 3V small battery that can be portable.

+ Timer : keep inside the box to prevent it to be damage

from heat or shock..

Front View
+ Top casing : can be open to change the battery or other
component things.
+ Magnet : use to attach IRON BUDDY to the body of the
iron.

Top View
+ Speaker : is use to alert the user in volume that can be
heard far away.
+ Sensor or Button : to activate the timer when user put
the iron in standing style.

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3.1 Process Operation of “Iron Buddies”

Iron Buddy is use to help human in remembering, it’s can actually make human more
alert on using household product that can give harm to the people surrounding. There is
friendly user for easy use. The product is built small to make it portable and easy to assemble
in every product of iron.
The principles on using this product are simple, just stick the end of the magnet or
strap on to the iron, than the product is easy to be attach to the iron. The bottom sensor must
be place under the bottom of the iron. The sensor will react to the ground when the iron is put
horizontal.
The circuit is shown in Figure below that held inside the casing of the Iron Buddy.
The circuit first reacts from the sensor/button, and then the sensor/button will close the circuit
then activate the timer. In a certain time, the timer will countdown, the alarm will be sound
when the countdown is point to 0s.

Figure 3.1: “Iron Buddies” circuit diagram

BATTERY
 Using 3V battery
 High performance batter that can easily be replace
SENSOR/SWITCH
 Using button that heavy duty
 Can be replace for sensor that react if something near it

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TIMER
 Timer that specially design for the product
 Have countdown timer that can be set as user want
 The special of the product is based on this timer
BUZZER/SPEAKER
 Produce sound to alert user
 Annoying sound to make sure the user learn their lesson

3.2 Future Technology

For the future development of our product, this product can be improved as follows:

 Hand sensor
Based on the current design of our “Iron Buddies”, the sensor is placed at the bottom
(based) of the iron. So, by improving the sensor’s placement we can place it at the
handle of the iron to make it more friendly user.
 Digital timer
The installation of the digital timer is to display the time and the time can be adjusted
 Variety casing
The function of the variety of casing is to match up the appearance of our product
with the iron

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 4.0 MARKET RESEARCH AND ANALYSIS

Marketing strategy is a process that can allow an organization to concentrate its

limited resources on the greatest opportunities to increase sales and achieve a
sustainable competitive advantage. Effective marketing requires an understanding of
consumer needs. We realized that marketing strategies are very important to attract and hold
customers. Customers have become smarter and more price sensitive. They are no reason to
pay more for a good product. For all these reasons, we are very aware about our marketing
strategy.

4.1 Customers

Our target customer will be all the housewife, maid and bachelors in Malaysia. The
reason behind this is because we consider the newness technology that we bring in our
product. We understand that new invention comes with a certain perception and doubt. So for
the first five year, we decided to only focus on local customer in our country in order to
understand the market before considering to lunch our product internationally. We choose
local shop because most of the customer find it much easier to buy and get the item
themselves faster. It is important to us to reach our customer and make our product available.
Therefore, we have created our own website where the customer can place their order online.
The details will be explained in the marketing strategy
Another customer that we target is the clothing company located around Selangor and
Kuala Lumpur. Most of the business owners and big names in the textile industry are also
known to runs their base operation in those areas.
Based on our prediction, the estimated major purchaser for our product is listed below:
• Nagoya,
• Kamdar
• Gullatis
• Jakel
The wholesalers such as listed above have the capabilities to distribute it to the target
location of marketing such as in the city area. Also, through them our company gain a great
advantage because major textile company such as them usually has a much better method to
approach and try to penetrate sub-urban marketing in the effort to reach and expose them to
our modern safety product.

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4.2 Market Size and Trends

Since this is a new product, our major factor affecting the market growth is they
existing clothing iron developer’s company that will also make an attempt to manufacture a
similar safety mechanism to our product build in theirs. Furthermore, our customer still quite
reluctant to believe that our product one of the quality product because our company and the
product are still new is this kind of market.
So, we expected that potential annual growth for at least three years of total market for
our product is about 15% for the first year and increase gradually 5% until it reach 3 years.
So, the final value of annual growth of our product is about 25 %.
In our opinion there are many factors that will affect the market growth. We can
increase the productivity which lowers the inputs (labor,capital,material,energy,etc) for given
amount of output. Lowered costs increase demand for goods and services. The statistic shows
that the population of the world increase 80 millions per year, that means the opportunity will
open even more wider and this is give the advantage to our technological designed product.

4.2.1 Factor Affecting the Market Growth

Market growth is directly related to the customer’s power and need. If the financial
background of the company is strong, then it should be no problem to consider buying a big
machine or equipment for long term Investment. It also much depends on marketing
strategies and promotion. The most effective promotion is by customer’s mouth to mouth
conversation sharing their experience and easiness using “Iron Buddies” device. Too perfect
iron safety device will lead to negative market growth because as time goes, the purchasers
do not have to buy new iron safety device. The existence of big rival will also affected the
market growth. As to compete with the big rival, we will find way to maximize our profit but
giving the best price to the customers.

4.3 Competition and Competitive Edges

Competition in the market field is very common between product, company and
manufacturer to survive in that particular marketplace. Besides that, competition also could
be an indicator that the product is good in quality or not.

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 4.3.1 Strengths and Weakness of Competitors

This product has its own competitors whether in domestic or international such as:

Table 4.1: Strengths and weaknesses of competitor

No
Competitors Strengths Weakness
.
Rowenta DA1560 (AMERICA)
1. 1. Good design 1. Not so easy to
2. Small device handle the device
3. Low price 2. Not overall to the
4. Portable whole cloth

Kobayashi, LED Steam Iron

(JAPAN) 1. LED Steam Iron 1. Big scale device
2. Technology 2. Not portable
2. Effectiveness on
the full cloth

Tefal Fv4483g1 Ultraglide 1. Relaxing 1. Expensive

3. (MALAYSIA) 2. Ergonomic 2. Not effectiveness
features on the full body
3. Established brand 3. Not portable
4. Popular brand

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4.3.2 Comparison of the Competitor’s Pertinent Features

Table 4.2: Competitors pertinent features

Competitors

Kobayashi, LED Steam

Tefal Fv4483g1
Rowenta DA1560 Iron
Ultraglide

Quality  Intermediate  Good  Excellent

Price  RM 150  RM 1200  RM 399
Performance  Incorporated  Incorporated the  High
the functions of functions of performance
sound infrared 1250 watt, 9 amp
motor that moves
roller
Service  2 years  8 years  12 years
warranties
Delivery  2days  7days  10days
Time
Weight  1 kg  8 kg  5 kg

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 4.3.3 Comparison of the Fundamental Value of our Product

Table 4.3: “Iron Buddies” feature

“IRON BUDDIES” SAFETY SYSTEM

Quality  Good
Price  RM 100

 Using buzzer to alert consumer

Performance  A timer measuring precisely 3 minutes
 A sensor to detect iron in standing position

Service
 2 years
warranties

Delivery Time  2 days maximum(Peninsular Malaysia)

Weight  200 g

The “”Iron Buddies” product can survive in the marketplace because of the value
added in this product. For example, the customer service that our company offers such as a
service and maintenance to the doorstep and also a 24 hours call service and delivery option.
All our service offer a great convenience and satisfaction to our beloved customers. Besides
that, this product is in average range of price if compared to the other expensive products
because the function and technology are merely the same with others but it is in the
affordable price to customers. Users or customers prefer to the product that has the lower
price but got the same function and technology as the expensive ones. So, it will affect the
economic to the company and can compete among the competitors.

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 4.3.4 Advantages and Disadvantages of the Products

4.3.4.1 “Iron Buddies” safety system

Table 4.4: “Iron Buddies” current Advantages and Disadvantages

BIL ADVANTAGES DISADVANTAGES

High technologies will attract Integrated with a very sensitive

1.
the customers to buy this tiny sensor button.
product.

2. Low price Risk of losing the device because

of small size

Robust design of the casing.

3.
(Heat resistance)

4. Energy conservation

Light weight less than 200 gram

6. (easy handling)

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 4.3.4.2 Competitors

 Rowenta DA1560
Table 4.5: Rowenta DA1560 Advantages & Disadvantages
BIL ADVANTAGES DISADVANTAGES

1. In small size and using ultrasound Do not have alarming system

to do physiotherapy on human’s
body – ecofriendly

 Kobayashi, LED Steam Iron

Table 4.6: Kobayashi, LED Steam Iron Advantages & Disadvantages
BIL ADVANTAGES DISADVANTAGES

1. Far Infra Red (FIR) Revolutionary Not a portable device and pretty
Healing Technology and heavy to handle
ecofriendly

 Tefal Fv4483g1 Ultraglide

Table 4.7: Tefal Fv4483g1 Ultraglide Advantages & Disadvantages
BIL ADVANTAGES DISADVANTAGES

1. Popular choice & easily available Expensive device

to the users

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4.4 Estimated Market Share and Sales

Based on the advantages and value possess by our “Iron Buddies” product, it can be
calculated the market shares:

Table 4.8: Estimated Market Share and Sales

Product Market Share and Sales

Year
Year 1 Year 2 Year 3

Market share (%) 15 20 25

Total sales (units) 7500 10 000 12 500

Total sales (RM) 750 000 1M 1.25M

Assume that market share will increase 5% from year 1 to year 3. Besides that,
assume that demand for our product to be produce per year is 7500 units. The price for the
product is RM 100 per unit.

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4.5 Marketing Strategy

4.5.1 Overall Marketing Strategy

Our growth trends target is increasing slightly a year by year. It will start from small
region and expands to whole Peninsular Malaysian including Sabah and Sarawak. Our future
planning is to export and exchange this technology with the neighbour country. Competitor
for our business in term of product is existing company which produce physiotherapy device
with higher technology and advantages. That’s mean we have many competitors, so that we
must put many efforts on marketing strategies.
Besides that, the marketing strategy is to create our own official website for “Iron
Buddies” device and blog spot as advertisement medium. Publishing in the newspaper and
television will be the best technique. Later, selling effort will be targeting wider market range
so we need a website to do the job. Furthermore, the other strategy to boost up sales a bit is to
hire a public figure as an ambassador of the product such as actor, singer and other public
figures because these groups of people had it own followers or fans. Automatically, it will
increase sales of this product.
In addition, we have collaboration with Ministry of Entrepreneur and Cooperative
Development (MECD). In the agreement with MECD, they will promote our product to the
new entrepreneur.

4.5.2 Pricing Strategy

Basically for the new products, the pricing objective often is either to maximize profit
margin or to maximize quantity (market share). To meet these objectives, skim pricing and
penetration pricing strategies often are employed. The price for our product is RM 100
without delivery charge but if needed such as use buying online we can provide delivery with
a suitable charge based on the country. We also consider the advertising and promotion
strategy such as, give a discount for customer with certain criteria.

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 4.5.3 Sales Tactics

Customers who buy the product directly by walking through our company will be
given a 10% discount for the product. We also provide virtual market where buyers can buy
the product through online and also buy from other sport retail that we distribute in Malaysia.
Efficient and reliable deliveries/shipments will be crucial as one of the advantage to attract
customers. We have also given a special gift for the 100 first buyers who come through the
company.

4.5.4 Service and Warranty Policy

Every product must be provided with the warranty of product to assure confidence on
customers and as a guarantee to the product’s quality. The minimum period of warranty is
one year from date of shipment from 3A’s Enterprise. No maintenance charge during the
warranty period and it is only valid if there is no alteration or modification on the product
done by the customers. The terms and conditions was set by the 3A’s Enterprise. Warranty
Service, apply to products has accepted for Warranty Service and provided the certificate of
registration the product was originally purchased, for company or individual use. 3A’s
Enterprise also provides maintenance service team to help customer in any problem of the
product.

4.5.5 Advertising and Promotion

3A’s Enterprise also makes an official website for our company to promote the
company and product while near to the customer’s heart. Other alternative to promote our
Iron Buddies is through the internet forum or blog such as, www.facebook.com,
www.mudah.com, www.alibaba.com, and also on other forums. Furthermore, the multimedia
promotion that will be used and one of the important medium is newspaper. 3A’s Enterprise
also used television for big audience promotion and for the advertisement on local television
is for 30 second. We will make the advertisement on television is 180 second per month. For
the newspaper we used ¼ pages to advertise our product and only four times for one month
our product will put in the newspaper.

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 4.5.6 Distribution
The option that we have for distributions is product selling through the booth. It is an
option in markets with “only a few buyers” or where we and buyers can “easily find each
other”. Our company also distribute to the chosen retail shop all over Malaysia.

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 5.0 Management Team
5.1 Organization

ALI IMRAN
(GENERAL MANAGER)

AMIRUL KHAIRI SITI AMIRAH NUR SYAHIDAH

(FINANCIAL MANAGER) (MARKETING MANAGER) (R&D MANAGER)

Figure 5.1: Organizational Chart

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 Table 5.1: Key Management Roles

KEY MANAGEMENT ROLES NAME

Ali Imran Bin Muhammad Isror
 heading the organization (General Manager)
 responsible for the routine operation of the
company
 motivate and mentor members of the
management team and chair meetings

 takes care of the inner workings/engineering of

a design Nur Syahidah Binti Suahaimi
 responsible for the aesthetic and ergonomic
aspects (Research and Development
 develop the product concept and specifications Manager)

 takes care of the process of product

 expansion the opportunities of the product

 encouraging customers to buy our products Siti Amirah Binti Abdullah Sani
 expanding opportunities for installing more (Marketing Manager)
processes

 measurement, disclosure or provision of Amirul Khairi Bin Abdul Wahab

assurance about financial information (Financial Manager)
 information providers to many institutions that
influence the decision making

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5.2 Key Management Personnel

5.2.1 Career Highlights

Table 5.2: Career Highlights

Names & Positions Career Highlights

1. General Manager  Experience working with a board of

ALI IMRAN BIN MUHAMMAD directors and committees.
ISROR
 Experience in personnel
management, including hiring,
supervision, evaluation and benefits
administration.

 Experience in business management,

planning and financial oversight.

 Proven skills in business and

financial management.

 Proven ability to cope with conflict,

stress and crisis situations.

 Excellent, proven interpersonal,

verbal and written communications
skills.

 Demonstrated ability to work in a

proactively diverse and inclusive
organization.

 Demonstrated ability to work with

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 student member - owners.

Key skills :
 Technical
 Human
 Conceptual

2. Research and Development (R&D)

Manager  Experience in engineering field.

NUR SYAHIDAH BINTI SUAHAIMI  A high level of technical and

scientific knowledge and the ability
to apply this knowledge to practical
problems.

 Knowledge of computer-aided
design and rapid prototyping.

 Knowledge of computer-assisted
design software.

 Ability to select functional and

economic materials.

 Good communication skills and

confidence in dealing with a wide
range of people (clients, contractors
and directors).

 producing prototypes of brand new

products, or making improvements
to existing products

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  Good communication skills,
particularly the ability to influence
and persuade others, and write
concise reports.

 IT, technical and process know-how.

Key skills :
 Problem-solving
 Communication
 Teamwork
 Flexibility.

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3. Marketing Manager
SITI AMIRAH BINTI ABDULLAH  Experiences and understanding
SANI about business environment.

 Developing entrepreneurship in
teams.

 Customer relationship management.

 Manage advertising opportunities in

other theatre program, press and at
venues.

 Organize the availability of company

members for media/PR events as
necessary.

 Oversee content, production and

distribution of all marketing and
publicity materials (posters,
program, flyers, mail outs, brochures
etc) with director, designer and
project manager.

 Co-ordinate the invitation of

potential future promoters and
supporters of the company.

Key skills :
 Negotiation
 Communication
 Interpersonal skills
4. Financial Manager
AMIRUL KHAIRI BIN ABDUL  Knowledge of finance, accounting,
WAHAB budgeting and cost control principles
including Generally Accounting
Principles.

 Knowledge of financial and

accounting software applications.

 Knowledge of federal and state

financial regulations.

 Ability to analyze financial data and

prepare financial reports, statements
and projections.

 Provide recommendations regarding

investments and cash strategies.

 Oversee preparation of annual

budget, regular variance statements
and annual audit.

 Provide vision regarding overall

financial health of the company.

 Provide vision and leader ship in

long - range fiscal planning to ensure
the continuity and solvency of the
company.

 Provide recommendations regarding

 effective utilization of long and short
term debt, including refinancing and
purchasing/sales.

 Key skills:
 Fundraising efforts.
 Flexible
 Analytical
 Honest and trust

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 5.2.2 Duties and Responsibilities

Table 5.3: Duties and Responsibilities

 General Manager will have overall

Ali Imran Bin Muhammad Isror
(General Manager)
leadership of the company including.
 Responsible for overall business
operations of the company.
 Ensure proper and smooth running of
the operational functions.

Nur SyahIdah Binti Suahaimi  Research, design, evaluate, and

( Research and Development (R&D) maintain design products to meet
Manager ) requirements.
 To develop and providing conceptive
design.
 Prepare design schedule for project
requirements
 Handle product transfer and new
product set up.
 Suggest improvements to process to
obtain improved quality and
production yield.

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Siti Amirah Binti Abdullah Sani
(Marketing Manager)
 Direct and control sales activities,
policies and plans.
 Analyze sales records to determine
market trends and other relevant
market developments.

 Formulate and monitor the

implementation of promotion
strategies.
 Responsible for performing cost
Amirul Khairi Bin Abdul Wahab accounting duties and analysis,
(Financial Manager) management reporting cost and
capital budgeting
 Responsible for product costing
analysis
 Prepare and analyses month factory
overheads
5.3 Management Compensation and Ownership

5.3.1 Monthly salary, share and equity invested

Table 5.4: Monthly Salary, Share and Equity

Names & Positions Monthly Salary Share of Amount of Equity
ownership Invested
Ali Imran Bin RM 2,500 20% RM 19,000
Muhammad Isror
(General Manager)
RM 2,500 16% RM 15,000
Nur Syahidah Binti
Suahaimi
(R&D Manager)

RM 2,500 16% RM 15,000

Siti Amirah Binti
Abdullah Sani
(Marketing Manager)
RM 2,500 16% RM 15,000
Amirul Khairi Bin Abdul
Wahab
(Financial Manager)
5.4 Supporting Professional Advisors and Services

5.4.1 Supporting services

Any product of human intellect and creative endeavor such as innovation, design,
trading style, artistic work or literary work has value in the marketplace. Supporting service
required for every new product produce. This service will help the product become success
with a right ways. There are many categories or type of supporting service that may need it.
There are several supporting services that need for Iron Buddies.

1) Lawyer
Law is the system of rules of conduct established by the sovereign government of a
society to correct wrongs, maintain the stability of political and social authority, and
deliver justice. Working as a lawyer involves the practical application of abstract legal
theories and knowledge to solve specific individualized problems, or to advance the interests
of those who retain (i.e., hire) lawyers to perform legal services. (Carol M.Bast, Foundation
of Law, 1999)
Lawyer service is needed for professional legal services for our product such as
patent, design, trade mark and etc. Lawyer will make sure our product design will safe from
getting steal from other peoples. If that happen get the right to sue that people because of that
situation.
Lawyer is needed for the professional legal support for our product. The lawyer is
chosen to take a legal responsibility for our product. If something legal happen. It’s because
of the product so there are many procedures need to do before and after produce it. Before
and after sell also need the procedure from a lawyer that needs the legal registration or
agreements and etc.

2) Consulting Service
A consultant is a professional who provides professional or expert advice in a
particular area such as security (electronic or physical), management,
accountancy, law (human resources, marketing (and public relations), finance, engineering,
or any of many other specialized fields.
Consulting service is easier to get the advisor from the consulting department through
some things. There are such as using a high technology system, the client challenge and etc.

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To stay ahead in the highly competitive and dynamic High Tech industry, organizations have
to innovate while minimizing time-to-market and optimizing investments.
Through this consulting service, it comprehensive solutions that will help us accelerate
product innovation, achieve operational excellence, attain greater profitability and maintain
market leadership.

3) Insurance Advisor
Insurance is a form of risk management primarily used to hedge against the risk of a
contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss,
from one entity to another, in exchange for payment.
Insurance advisor to keep our product not go down when started selling. Purchasing
insurance is difficult, often times confusing and have many choices. Competitive programs
don not always mean comprehensive coverage. Through with this insurance advisor may use
the money wisely. Even before making product or after sell it. The management of money is
important for any business. If the team not use it on the right way, it will become bankrupt
before start the business. . Insurance advisor can help the company to make a right decision
and choose a right way to sell “Iron Buddies” product.

5.4.2 Service Provided by the Affiliation

5.5: Table Service Provided

NAME OF PROFESSIONAL
SERVICES PROVIDED
ADVISORS

1) Lawyer Service Offer a wide range of professional legal services as

Kanesalingam & Co - Advocates & listed below:
solicitors, notary public, trademarks 1. Partnership & Shareholders Agreement
agent 2. Patent, Trade Marks & Industrial Design

ADDRESS:
5th Floor, Wisma T.K. Tang, 4 Jalan Yap Ah Loy,
50050 Kuala Lumpur
Tel: 03 2070 2299,

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 Fax: 03 2078 2845

2) Consultant Services Partnerships and Alliances that foster successful ‘go-to-

market’ initiatives, enhance product performance,
Angkasa Consulting develop industry and segment-specific solutions and
Services Sdn. Bhd. ensure shared success through leverage of mutually
exclusive capabilities.
ADDRESS:
No. 49, Jalan Usj 10/1A, Uep Subang Jaya, 47600,
Subang Jaya, Selangor 03-5632-8899

3) Insurance An insurance policy for business.

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 6.0 Financial Plan/Estimate

6.1 Start-up Cost

START-UP COSTS RM
Capital Expenditure : Administrative
Security Equipment 2000
Furniture and Fittings 15000

Capital Expenditure : Operations

Van 50000

One-Time Start-up Expenditure

Opening Advertisement 2000
Signboard 1500

Other Pre-Operations Expenditure

Deposit Rent 4500

Business Registration & Licenses 1200
Insurance & Road Tax for vehicles 1500
Other expenditure
Start-Up Costs 77700

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6.2 Working capital

WORKING CAPITAL Variable

Fixed (RM)
(MONTHLY) (RM)
Marketing
Advertising 3000

Administrative
Salaries, EPF & SOCSO 11400
Rent 1500
Utilities & Telephone 1000
Office maintenance 500

Operations
Raw Materials & Packaging 13000
Carriage Inward & Duty 1500
Salaries, EPF & SOCSO
Carriage Outward
Factory Maintenance
Insurance
TOTAL 13900 18000

Total working capital 32,900

Total working capital required
(1months) 32,900
Working capital contingencies (10%) 3,290
Working capital + contingencies 36,190

6.3 Start-up capital and financing

ESTIMATED START-UP CAPITAL RM 113,090

FINANCING
Equity share RM 64,000
Loan RM 50,000
Annual interest rate 5%
Loan duration (years) 10

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6.4 Cash flow statement

Year 1 Year 2 Year 3

CASH INFLOW

Share Capital 64,000

Loan 50,000

Cash Sales 750,000 1,000,000 1,2500,000

TOTAL CASH INFLOW 864,000 1,000,000 1,2500,000

CASH OUTFLOW
Administrative Expenditure
Salaries, EPF & SOCSO 136,800 136,800 273,600
Rent 18,000 18,000 18,000
Utilities 12,000 12,000 12,000
Office Maintenance 6000 6000 6000

Marketing Expenditure
Advertising 36000 36000 36000

Operations Expenditure
Cash Purchase 150,000 200,000 250,000
Carriage Inward 18,000 18,000 18,000

Other Expenditure 1000 1000 1000

Pre-Operations
Deposit

Business Registration & 1,200

Licences
Insurance & Road Tax for 1,500 1,500 1,500
Motor Vehicles
Other Pre Operation 5,500 5,500 5,500
Expenditure

Fixed Assets
Purchase of Fixed Assets-
land & Building

Purchase of Fixed Asset - 70,500

Others

Hire - Purchase Repayment

Principal
Interest

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 Loan Payment
Principal 5,000 5,000 5,000
Interest 2,500 2,500 2,500

TOTAL CASH OUTFLOW 464,000 442,300 629,100

CASH SURPLUS 400,000 557,700 1,870,900
(DEFICIT)
BEGINNING CASH 0 400,000 957,700
BALANCE
ENDING CASH 400,000 957,700 2,828,600
BALANCE

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6.5 Income statement

Year 1 Year 2 Year 3

Sales 750,000 1,000,000 1,250,000

Less: Cost Of Sales

Opening Stock 150,000 200,000 250,000

Production Cost
Less: Ending Stock of 18,000 18,000 18,000
Finished
Carriage Inward & Duty

168,000 218,000 268,000

Gross Profit 582,000 782,000 1,223,200

Less: Expenditure

Administrative Expenditure 172,800 172,800 309,600

Marketing Expenditure 36,000 36,000 36,000
Other Expenditure 1,000 1,000 1,000
Business Registration & 1,200
Licenses
Insurance & Road Tax 1,500 1,500 1,500
Other Pre Operations 5,500
Expenditure
Interest On Hire Purchase

Interest of Loan 2,500 2,500 2,500

Depreciation of Fixed Assets 23,500 23,500 23,500

Operations Expendituree

Total Expenditure 244,000 237,300 374,100

Net Profit Before Tax 463,400 544,700 849,100
Tax 0 0 0
Net Profit After Tax 463,400 544,700 849,100
Accumulated Net Profit 463,400 1,008,100 1,257,200

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6.6 Balance sheet

Year 1 Year 2 Year 3

ASSETS
Fixed Assets
Land & Building Equipment
Furniture and Fittings 15,000
Security Equipment 2000
Signboard 1,500
Van 50,000
69,000 0 0

Current Assets
Stock of Raw Materials
Stock of Finished Goods
Accounts Receivable 400,000 577,660
900,860
Cash Balance 400,000 577,660 900,860

Other Assets
Deposit
TOTAL ASSETS 469,000 577,660 900,860

Equity
Share Capital 64,000
Accumulated Profit 463,400 1,008,100 1,257,200
527,400 1,008,100 1,257,200

Liabilities
Loan Balance 67,750 60,500 53,250
Hire-Purchase Balance
67,750 60,500 53,250

TOTAL EQUITY & 595,150 1,068,600 1,310,450

LIABILITIES

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7.0 Project Milestones

Activities Start Finish Duration

(Months)
“Iron Buddies” Incorporation of venture 01/08/2020 31/08/2020 1
design
Completion of design and 01/09/2020 31/12/2020 4
development
Research Completion of “Iron 01/01/2021 28/02/2021 2
Buddies”
Product Ordering of materials in 01/03/2021 30/04/2021 2
development production
quantities
Starting of production 01/05/2021 30/06/2021 2

Receipt of first order 01/07/2021 31/07/2021 1

Delivery of first sales 01/08/2021 31/08/2021 1

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 8.0 CONCLUSION

As conclusion for the business itself, “Iron Buddies” Safety System competition in the
apparel industry is widely varied not only in Malaysia but worldwide. Our major
competitors are actually other established clothing iron and electronic brand manufacturers
itself. Therefore, 3A’s Enterprise had added extra function from the existing product in order
to make it different from other product. The company's management is confident that “Iron
Buddies” Safety System can achieve its aggressive sales forecasts, generating total sales of
approximately RM 0.75 million, RM 1 million and RM 1.25 million in years 1, 2 and 3,
respectively. In addition, the top management of 3A’s Enterprise management has carefully
considered its market, potential customer base, and its ability to grow its sales average to
capture as much consumer in this country as well as in the international level.
While as a conclusion about ENT 600, this technopreneurship is a dynamic subject
that greatly expose and helps the students in managing a business that involves change and
new creation. Nowadays, as a Malaysian, most of the student are difficult to find a job based
on lack of experience, interest as well as based on the economic condition. Therefore, this
project can be a guideline for student to build up their own business thinking according to
their knowledge which is for sure will bring a prominent benefit for their success in the
future.
The early expose on entrepreneurship can open business opportunities in the future. For
an example, their major study is in engineering field therefore they can design a really
creative product and try to manufacture it. Based on technopreneurship knowledge and the
support from other person in term of financial or other technical knowledge, they can apply
their engineering know how knowledge and with a deep interest in the field it will give an
extra value on it business wise.

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