FUNDAMENTALS OF ENTREPRENEURSHIP

ENT300

BUSINESS MODEL CANVAS

PREPARED BY:

NAJWA SUHA BINTI SELAMAT (2018203586)

FACULTY OF BUSINESS ADMINISTRATION

DIPLOMA IN BANKING STUDIES
JBA1195A

BUSINESS NAME:

KYOWO THRIFT & BUNDLE

PREPARED FOR:

HJ SHAFIEE MD TARMUDI

SUBMISSION DATE:

17th DECEMBER 2020

 FACULTY OF BUSINESS AND MANAGEMENT
ASSIGNMENT/ PROJECT DECLARATION FORM

Student’s Name : NAJWA SUHA BT SELAMAT

Student’s ID : 2018203586 Student’s I/C No. : 2018203586

Program Code : BA119 Part : 5 Course Code : ENT300

Course :
Name FUNDAMENTALS OF ENTREPRENEURSHIP

Assignment/ Due Submission

Project No. : 2 Date : 17/12/2020 Date : 17/12/2020

Assignment/ :
Project Title BUSINESS MODEL CANVAS

Lecturer’s Name : HJ SHAFIE MD TARMUDI

I hereby declare that the work in this assignment/ project was carried out in accordance with the
regulations of Universiti Teknologi MARA. It is original and is the results of my own work, unless
otherwise indicated or acknowledged as referenced work. This assignment/ project has not been
submitted to any other academic institution or non-academic institution for any degree or qualification.

I acknowledge that I have been supplied with the Academic Rules and Regulations for Universiti
Teknologi MARA’s Diploma/ Bachelor Degree/ Master’s Degree students, regulating the conduct of my
study and exams.

I hereby declare that this assignment/ project is written by me and:

i. is a result of my own work;
ii. has not been used for another assessment at another department/ university/ university college in
Malaysia or another country;
iii. does not refer to/quote works of others or own previous writings without stating it both in the text
and in the reference list;
iv. mentions explicitly all sources of information in the reference list; and
v. will go through similarity check (Turnitin).

I am aware that disciplinary action (which may include the deduction of marks in the assignment/
project) will be taken against me if I am found to be an offender.

17/12/2020

Date Student’s Signature

/ SAT FBM Sep 2020

 TABLE OF CONTENT

NO. TITLE PAGE

1. Introduction

1.1 The purpose of Business Model Canvas (BMC) preparation

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1.2 Problem address by the business and how our product may solve
the problem.
2. Business Background 2-3

3. Business Model Canvas Model 4

5. Business model canvas element’s explanation 5-13

6. Conclusion 14

7. Reference 15

8. Appendices 16-17
1. INTRODUCTION
1.1 The purpose of Business Model Canvas (BMC) preparation.
Business Model Canvas (BMC) is basically a guideline to the organization in order to
operate and continue the business. To ensure the business runs smoothly, the preparation of
Business Model Canvas must be well planned. Below are the identified main purposes
of the BMC:

i) To provide the direction the company is taking, its objectives, where it wants to be, and how
it will get there so that the goals can be achieved.

ii) To avoid unnecessary waste elements in all aspects of the company by distributing
business funds more efficiently. That’s why this preparation is important.

iii) Convince and influence customers about the goods we sell and give them trust in doing
business with us.

1.2 Problem address by the business and how the product may solve the
problem.

Nowadays with the fluctuations of economy growth, people tend to seek such a quality
goods but with affordable price. So as solution to that problem, I sell a thrift and preloved items
in form of many types of clothes such as t-shirt, hoodie, blouse, knitwear dress, pants, skirts
and more. Most people acknowledge that thrift or “second-hand” items are usually slightly
used or even in new condition. I sell high quality goods but with affordable price for customer
in order to help them financially and also can save their money from buying unnecessary
things with high price. Besides it is saved customer’s wallet, thrifting is also a great way to
reduce waste and environmental pollution, while supporting the local economy by funding
small businesses like this.

In addition, the world is now facing the problem of overproduction, especially apparel,
so I am trying to reduce demand for new, retail products and create less pressure on
businesses to produce large quantities of their product for profit. In addition, thrift and bundle
goods keep the unused clothing of others out of landfills. So, we'll help reduce the load on
landfills by buying my products. At the same time, the demand for “quick fashion” will be
lowered by customers who buy our goods because thrift and bundle items usually old school,
vintage and stylish at the same time. They are actually helping to reduce the demand for slave
labor and sweatshops.

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2. BUSINESS BACKGROUND

Name of the business: Kyowo Thrift & Bundle

Owner: Najwa Suha Binti Selamat
Website: www.kyowothriftandbundle.com
Instagram: kyowothriftandbundle
Facebook: kyowothriftandbundle
Email: kyowo@gmail.com
Telephone number: 03-77450871

Figure 1: Logo and business description

Kyowo Thrift & Bundle is basically selling high quality “used items” with affordable
price. The words “Kyowo” is originally from the Japanese word which is “cute” as my business
is selling mostly cute and adorable apparels and items. Initially, this business only sold goods
online through website and social media but as day by day the company got a chances to rent
a small building to operate and process order, and at the same building we also open a small
physical store to customers who want to walk-in and take a look with their own eyes. The shop
is located at Shah Alam, Selangor and the business has been in operation since February
2018.
The owner of the business is myself, Najwa Suha Bt Selamat and I manage to start
the business by investing my own money that I saved. At first, I did it because I like and I love
to see people buy, wear and style them with their own creativity. As the time goes by,
business got a lot of response and a lot of people shows their interest towards my business.
Most of them love the design and materials which are elegant but at the same time simple and
comfortable yet at affordable price. From there, I determined to do better and grow my
business locally or even worldwide because I am sure my business has the ability to grow in
the future and provide good quality of service that will satisfy all my customers.
Kyowo Thrift & Bundle is a sole proprietorship business that owned by me. Currently,
I have 7 employees working with me in and we are in the business together to make Kyowo
Thrift & Bundle a successful business. I have 3 manager including financial manager with one
assistant, operation manager with 3 assistants and marketing manager. Since my business is
just in its initial phase and only has 7 employees, we agreed to make a work schedule in order
to take care of the customers from physical shop, the website and social media.

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 NAJWA SUHA (OWNER)

NAZZATUL AQILAH ALIAH EIZZAH NUR AQILAH

(FINANCIAL MANAGER) (MARKETING (OPERATION MANAGER)

MANAGER)

ASISSTANT 1
ASISSTANT 1 ASISSTANT 2 ASISSTANT 3

Figure 2: Organizational Chart

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3. Business Model Canvas

Key Partners Key Activities Value Propositions Customer Relationships Customer Segments
 Suppliers.  Selling and collecting  Design  In person  Website and social
orders  Affordable Price  Online media customers
 Companies  Marketing  Customer near the
Commision of shop
 Packing  High Quality of Material
Malaysia (SSM)
 Customer who want to
 Courier services  Make great bonding save money
with customer
 Owner of the premise  Customer who love
Key Resources Channels thrift and bundle items
 Logistics
 Staff  Direct Selling
 Vehicle  Website

 Building  Social Media

 Internet Connection

Cost Structure Revenue Streams

 Fixed Cost: Rental, Salaries, and Wi-Fi  Sales of the goods

 Variable Cost: Cost of Items, Vehicle Rental, Maintainence and Utilities .  Paid Partnership

 Collaboration

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4. BUSINESS MODELCANVAS ELEMENT’S EXPLANATION
4.1 KEY PARTNERS
Key Partners refer to the other entities whether other companies, suppliers or parties
that business will rely on or use to carry out key activities and provide value to customers. It
is basically helping the business to achieve the value promises to the customer. Kyowo Thrift
& Bundle has established partners with suppliers of the clothing, courier services, owner of
the premise, logistics and Companies Commission of Malaysia (SSM).

My business has two suppliers that supply the clothes in bundle packaging normally
weighs 80kg to 100kg one bundle or bale and one bundle contained mixed items which
randomly picked by the suppliers. The suppliers we choose as partner is a supplier that
provides items imported from Japan and Korea. Most of the items so far are very satisfactory
and in good condition. These two of my suppliers’ warehouse is located at Kuala Lumpur and
Klang. In order to carry the items, one car may be not be able to take them to the location
where my business operate since the items are in huge bundle. So, I manage to deal with a
logistics company to take the clothes with their rental trailers or lorry service.

Besides, the business has to rely on the owner of the premises or building in order to
operate the business and selling the items. Without the buildings, Kyowo Thrift & Bundle
unable to run and continue the business. In addition, the business also used courier service
for posting and shipping to deliver the items to the customer. This way will help customer to
get the clothes they are interested in without going out and for those who are far from the the
physical shop. Since my business also selling the items online on website and social media
platform, it is very crucial to ensure the items delivered in good and safe condition whenever
they arrived in front of customer’s house. My business used J&T Express and Poslaju for
delivering outside the area. Courier services really helps a lot as my key partner as they
contribute in provide value to the customers.

Last but not least, my business also makes Companies Commission of Malaysia
(SSM) as the key partners because when my business registered with SSM, customers will
buy without hesitation as it has been registered and monitored under them. If something
undesirable happens, they do not have to worry. Furthermore, they will also provide company
and business information to the public so that the business will refer to them.

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 4.2 KEY ACTIVITIES
The most important strategic things the business have to do to make the business
model work are the key activities. Value proposition should be directly associated with key
activities and making profits. It based on the company functions such as management,
advertising, problem solving or manufacturing. The key activities in my business are selling,
marketing, collecting orders, posting and make a great bonding with customer.

In Kyowo Thrift and Bundle, the main activities are selling the selected items that
chosen by staffs and also me as well. As the business focused on the high quality of the design
and materials, we select the best materials and design to sell and satisfy customer needs. We
also do some monthly survey to see the latest trends in order to improve and innovate the
business so that it is up to date. The business has 2 platform to get customers, which are from
physical shop and online through website and social media, we have to handle the direct
selling to those who walk-in the shop while online selling we collect the orders and process
the order to deliver the items ordered by the customers.

The business main activities are also do marketing by advertising and promoting the
business through social media. My staff and I did the photo-shoot of the clothes in creative
way, create description that will convince customers and choose the best time to promote and
advertise it. We generate simple and easy details about our goods to attract consumers and
state the price so that they are able to understand and easy to digest. In addition, appealing
and eye-catching advertisement would draw and increase the willingness of consumers to buy
the product we sell, and we are always working to achieve that.

Next, we do collect the orders from the website and social media then pack them in
order to delivery to the customers. I very concerned about how our product’s condition when
delivered to the customers so that no damage occurs. The business used high quality
wrapping equipment such as bubble wrap and marked the parcels as fragile item to prevent
any damages. From there, courier service know that the items need to handle with care.

When the clothes ordered by the customers delivered in good condition, this will lead
to customer satisfaction. The business is always looking forward to making a great bonding
with the customers and to create loyalty. If the business continues give the great service to
the customer, they will be happy to buy again.

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 4.3 VALUE PROPOSITION
Value proposition is the value that a business delivers to each customer segment. It is
a concept of the exchange of value between the business and customer. A successful value
proposition shows buyers that why they should purchase from the business and not others.

Kyowo Thrift & Bundle is indeed focused on the design of the clothes and the materials
offered as we are only select the best and high-quality items. The materials we offered is
normally comfortable and meets customer’s expectation based on their feedback. Usually, we
will pick the items based on consumer expectations and preference so that they are pleased
with what my business gives and effectively generate profit.

To provide high quality materials and design in my business value proposition, I very
particular on quality controls to ensure all the product offered are good and in great condition.
As stated in key partners, my business chooses the great suppliers which import the items
from Japan and Korea which the countries normally will make sure the product and goods
they produce is in high quality and the best in town.

Lastly, Kyowo Thrift & Bundle had guaranteed the best prices and good value to all
customers. The business provides affordable price for the products as the target market also
focus to customer who want to save money. The business provides as low as RM3 per item
but with exclusive and high quality of products. We also offered to the customer a deal such
as “happy bag RM30” to those who want to purchase more than one items. From that also will
create a value with the customer and lead to customer satisfaction.

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 4.4 CUSTOMER RELATIONSHIP
Customer relationships are characterized as the type of interaction between the
organization and its customer segments. This consists of how the seller and the buyer deal
with each other. One of the strategies contributing to improved market success is the customer
relationship. Kyowo Thrift & Package is really concerned with consumer relationships. This is
because my business does not want to lose the customer's confidence, although they will be
able to help me expand my business indirectly.

My business has approach to build customer relationship in person which is direct from
physical shop. It is face-to-face interaction between seller and customer. As the owner, I
always remind my subordinates to be nice and to show respect when it comes to dealing with
customers. Treat them with kindness, speak gently, always smile. I believe that to achieve a
successful business, a good communication and manner will attract more customer because
it will make them more comfortable and enjoy every items or products offered.

Next, my business also approaches automated relationship with customer through

online which is from website and social media platform. From the website, I manage to create
a membership platform for customer who want to get notifications and new info about my
business. For those who join the membership will also get membership privileges such as
reward point and discount. I preferred to use this method to build long term relationship to
engage with customer all the time. While from social media platform, my business usually
collects the feedback and opinion from customer through direct message, comments and post
tagging. From there, my business can improve and enhance the product and service in order
to help develop reputation and trust in the business.

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 4.5 CUSTOMER SEGMENT

Customer segmenting is a method of separating the customer base into categories of

people that are related in specific ways, such as age, gender preference and shopping habits.
It is important to know who the target market for the business and aim to fulfil their needs.
There are 4 categories of people in my business’s customer segment which are from website
and social media customers, people near my shop, people who want to save money and
people who love “thrifting” and preloved clothes.

One of my business’ target customer is from website and social media. As I started my
business through online, thus most of my customers know the existence of my business
online. At first, I decided to sell my product online because it is easy, cost effective and energy
saving. It is also easy to approach customers and attract them. In future, I hope my business
always can improve customer segmenting through online since it is easy to conduct and cost
effective. In addition, my business also target customer who are near to our shop as they will
find it easier to get our products. They can also see with their own eyes how the condition of
each item is so that they are satisfied.

My business also targets those who want money and budget savings. Nowadays with
economic fluctuations, people tend to save more. Since my business sells thrift and used
products, it is also worth buying, so it is affordable and cheap. It's inexpensive, but it also has
high material quality and a trendy design.

Last but not least, the target customer of my business is also for those who love and
are interested in thrift and bundling items. Thrifting has always been a much more affordable
way to shop, and it is a better way to support sustainable fashion by buying second-hand
clothing. Clothing is a way for individuals to unleash their creativeness, discover their sense
of style, and be unique in their own personal way. In recent years, with young people from
around the world flocking to the trend, thrifting has become more popular. Many thrift stores
see the majority of their customers is from Generation Z, according to Dispatch. One of the
main reasons why thrifting has now become so much more popular especially among younger
generations is because they have found their own sense of style. Finding clothes that make
an individual feel good about themselves and have a way of expressing themselves in their
own way.

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 4.6 KEY RESOURCES
Key Resource is referred to generate value for the customer. They are the assets of a
business that required to maintain and support a business. Kyowo Thrift & Bundle must ensure
the correct key resources in order to generate value proposition and revenue.
My employees are the main key resources of my company because the manpower is
the most important factor in making my business run efficiently and so that the demand can
be adequate. A lack of sufficient manpower prevents tasks and operation activities from being
performed by organizations. Thus, the lack of productivity results in a decline in sales and
profit, which in some situations means that my business will not remain operational.

Next, the vehicle is one of the key resources in my business. As I stated in key partner
section, I manage to deal with a logistics company to take the clothes with their rental trailers
or lorry service. Without them, the clothes will not be able to reach where my business
operates and will not be able to continue sales activities in order to get revenues. The vehicle
is very crucial to ease the movement of the operations. On top of that, my business will not
function if the building does not exist. Since the building itself is the location where we do our
business operations and directly sell our products to customers.

Besides, internet connection such as Wi-Fi also the most important key resource to
the business. Since my business operates online, it is very necessary that my business must
have a strong internet connection in order to proceed orders from the website and social
media. It is also really important for advertisement and marketing purposes to have a good
internet connection so that my business can gain more customers and increase sales.

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 4.7 CHANNEL
It is possible to describe the channel as how goods or services are marketed to
customers. It is so important for my organization to understand how to meet customers.
Effective channel can deliver the value proposition of a business. It is very important to decide
which method is ideally fit for the business to achieve target. Kyowo Thrift & Bundle used these
3 distributions channels which are direct selling, website and social media platform.
First of all, one of the channels is through direct sales method, whereby it is face-to-
face interaction with my customers through my business’s physical shop. My customers can
get their interested clothes easily and can ask the details of the products directly. Next, my
business used a website channel. The link to our website is www.kyowothriftandbundle. As
we want to maximize marketing strategies while cutting advertising expenses, my
business prefers to use online websites. We used website to display the updated news of our
items and services and it also can track the orders. The customer can also buy the product
and talk with us via the website portal for any inquiries.
Yet everybody knows, everything about these new days has been using the internet to
keep people connected. In order to promote and sell our product, my team chose to use social
media as our channel too. My business used Instagram and Facebook with the name
@kyowothriftandbundle to sell the product. In order to look at product descriptions, prices and
photos of our items, they can simply scroll down to the social media sites. They can purchase
our product by clicking the link on our social media feed. Social networking is helpful and user-
friendly, since it can provide customer's reviews or even leave orders-related messages.

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 4.8 REVENUE STREAM
Revenue Streams is one of element that state where the revenue is generated and
where does the profit come from. My business generates revenue from these 3 income
streams 3 income streams.
Firstly, it is coming from the sale of the product itself which is the clothes. My business
earns the money from the sale in variety of forms such as cash, online transfer, and e-wallet.
The cash will be collected whenever I sell the items to customer directly from the physical
shops. While, the online transfer payment happened when the customer purchases the items
through website and social media platform or for customer who request shipping services.
Since E-wallet is widely use by people nowadays, my business also provides E-wallet platform
such as Touch N Go and Boost Apps to make payment whether through direct selling from
the shops or through website.
The next method my business does in streaming the revenue is making a collaboration
with fashion icon influencer on social media such as Yasmin Redzuan and Sharifah Rose. For
instance, I plan to grow my business by selling the clothes in collaboration with them style my
apparels with their own creativity and get commission from there too. It will benefit both parties.
We collaborate to make the advertisement, expose to public and generate more orders.
Lastly, my business also does paid partnership with other account business through
website and social media. My official website, for example, has pop-up others business
information and my business will get the fees for that advertisement. Ultimately the reason this
pop-up is effective is that when the website user needs it offers valuable value.

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 4.9 COST STRUCTURE
Cost structure described the business can recognize all the costs associated with the
conduct of business model. As it helps the organization to understand its real earnings, the
cost structure is a significant factor. In my business, there are two forms of cost structure,
which are fixed costs and variable costs.
For the fixed cost, since I have a rental building the amount that I need to pay every
month is RM1100 and need to pay to the premise owner. Next, the internet cost which is Wi-
Fi that I provide at my operation place covers for the promoting, advertising and marketing of
the business. I subscribe data plan from Unifi which RM100 per month. The Internet is an
essential requirement for maintaining the relationship between people on the online world.
Next, the important cost structure is workers’ salaries. My business has 7 workers and salaries
are paid based on basic and performance. For example, I fixed it to RM1000 per month for
each worker. The salaries could be increased if the workers work efficiently which resulting in
increasing of sales.
The variable cost for Kyowo Thrift & Bundle consists of operation expenses. The first
one is the items and inventory in order to continue selling activities. The cost for taking the
clothes depends on the amount of orders that we received in a month. In addition, the
packaging equipment for shipping purpose also adds up into the operation expenses.
Secondly, we also make maintenance as one of the cost structures for instance, any damage
to machines such as printer or computer. This causes cost changes on a monthly basis. Lastly,
utilities bills such as electric and water bills identified as variable costs.

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5. CONCLUSION

In conclusion, I am sure that in the future my business will be able to sustain because
I believe that the uniqueness and quality of goods my company will offer will attract more
customers and solve a customer problem. Me and the team will do our best over time to build
innovative strategies for this business while discover and dig the latest trends and fashions
that customers love.

Besides, my goal for the business is that the business will have stable and good
management in this industry in the next 5 years that can earn more profit with high quality
products. Since my business today only has a physical store in Selangor, I also hope that my
business will open another branch store outside the Selangor area in the future.

On top of that, I plan to apply loan for purchasing my own building so that I don’t have
to pay rent and rely to the owner’s building. The building would make it easier for employees
to do business operations and for customers to comfortably purchase our products.

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REFERENCE

1. The Lonely Entrepreneur. (2018, August 27) Determining The Viability of Your
Business Idea. Retrieved December 14, 2020, from
https://lonelyentrepreneur.com/10-ways-to-determine-the-viability-of-your-business-
idea/
2. Chron Contributor. (November 17, 2020) The Importance of Company Manpower.
Retrieved December 15, 2020, from https://smallbusiness.chron.com/up-employee-
satisfaction-22231.html
3. Thred Up. (March 3, 2020) Resale Growth & The Impact Of Covid. Retrieved
December 2, 2020, from https://www.thredup.com/resale/#resale-growth
4. Nicole Ordubegian. (June 7, 2020). Thrifting and its rise in popularity. Retrieved
December 2, 2020 from https://clarkchronicle.com/features/2020/06/07/thrifting-and-
its-rise-in-popularity/
5. Alyssa J. Oon. 12 Thrift Stores In The Klang Valley. Retrieved December 2 from
https://says.com/my/lifestyle/thrift-and-bundle-stores-you-can-shop-for-new-clothes-
from-cheap-prices

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APPENDICE

Source: Thred Up

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Source: Thred Up

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