UNIVERSITI TEKNIKAL MALAYSIA MELAKA

FACULTY OF TECHNOLOGY MANAGEMENT & TECHNOPRENEURSHIP

MBA
MTKM 5023 TECHNOPRENEURSHIP & INDUSTRIAL LEADERSHIP
SEMESTER I 2021/2022

GROUP ASSIGNMENT

BUSINESS PLAN REPORT

(TECH PLAY DOUGH)

PREPARED FOR:
DR. AMIRUDDIN BIN AHAMAT
DR. MOHD AMIN BIN MOHAMAD

PREPARED BY:
NURAKMAL BIN HASSAN (M062110002)
NORSHAHIRA BINTI SHAHARIN (M062110020)
NUR EZARINA BINTI MUHAMMAD SHYFRI (M062110016)

SUBMISSION DATE: 9 JAN 2022

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 TABLE OF CONTENTS

Content Page

1.0 Executive Summary 2

1.1 Problem Statement 2
1.2 Solution 3
1.3 Market 3
1.4 Competition 4
1.5 Financial Highlights 4
2.0 Opportunity 4
2.1 Problem Worth Solving 4
2.2 Roadmap/Future Plan 5
3.0 Market Analysis Summary 5
3.1 Market Segmentation 5–6
3.2 Target Market Segment Strategy 6–7
3.3 Key Customers 7
3.4 Future Market 8
3.5 Competition 8 – 10
4.0 Execution 11
4.1 Marketing Plan 11
4.2 Location and Facilities 11
4.3 Technology 12
4.4 Equipment and Tools 12
5.0 Company and Management Summary 12
5.1 Organizational Structure 12
5.2 Management Team 13
5.3 Personnel Plan 13
5.5 Company History and Ownership 14
6.0 Financial Plan 14
6.1 Financial Question to Consider 14
6.2 Revenue of Sales Forecast 15
6.3 Start-Up Expenses and Monthly Expenses 16 – 18
6.4 Projected Profit and Loss For 5 Years 18 - 19
6.5 Projected Cash Flow 19
6.6 Projected Balance Sheet 20
6.7 Break-Even Point 20
6.8 Business Ratio 21
References 22 – 23

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1.0 Executive Summary

Play dough is a modelling compound that can be used to create arts and crafts projects at
home and school by young children. However, in modern time with the advancement of
technology, play dough has become a playtime phenomenon. It is a growing desire for children to
express their creativity, as well as cultural trends such as slime. It is a toy press that allows the
users to dispense the compound in various shapes.

Tech Play Dough has been established in order to sell the natural ingredient with the
collaboration of technology. The natural ingredients are free from chemicals and safe. This natural
play doughs are the first play dough that is prepared with natural ingredients such as flour, salt,
vegetable oil, food colouring and others that collaborate with technology via an application. This
combination of ingredients produces a modelling compound that is soft, squeezable, non-toxic,
and reusable. Tech Play Dough is specifically made for toddler/kindergarten students,
primary/secondary school students and university students.

1.1 Problem Statement

First, the toddler (1 to 3 years) and children (4 to 6 years) have less interest during the
learning process. Children are ‘hands-on’ learners. They learn by interacting with objects and
people in a fun and interactive way. Understanding abstract concepts, require a lot of practice
with solid objects. Interest, on the other hand, has been found to have a significant impact on
student learning behaviour and future participation intentions (Chen, 2001).

Second, primary and secondary school students feel more stress due to online learning.
This is because the student lacks social skills, they are forced to wonder during the instructional
period, unable to comprehend and so concentrate on the subject matter being taught. Lack the
ability to function intellectually, socially, constructively, or contribute to the classroom
learning's impact, resulting in a poor educational experience (Gettinger and Seibert, 2002).

Third, the university student struggle due to lack of confidence during presentation.
Students appear to be afraid of giving oral presentations and presenting their work in front of
their peers. Sweating, palpitations, diarrhea, confusion, and muscle tension are the most
common symptoms of those with presentation fears and anxiety while speaking (Rickards,
2008).

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1.2 Solution

Tech Play Dough helps to improve the motor skills. Toddler/children strengthen their
small muscles in their fingers and hands while poking, rolling and squishing playdough.
Children's eye-hand coordination or the ability to match hand movement with eye movement,
is developed through these techniques. In addition, Tech Play Dough can help toddler/children
to enhance literacy and numeracy skills. As they explore, compare, and contrast the objects they
construct, children/toddler experience differences in shape and size. These play activities
encourage children/toddler to count, learn about shapes (geometry) and how they interact to
one another (spatial sense), and sort and classify.

Also, Tech Play Dough as a stress reliever tools. It can help primary/secondary school
students to use play dough as tool to release their stress during study time, examination or
discussion. When you compress play dough, it stimulates and contracts your nerves and
muscles, making them stronger. The strength improves the overall nervous system, lowering
essential hormones and lowering stress levels. Besides, Tech Play Dough help to build
confidence. It can help to motivate university students during presentation, brainstorming
session or public speaking. Playing with play dough in your hands might provide a non-
destructive distraction from your worry or anxiety.

1.3 Market

Tech Play Dough as one of the play doughs with the collaboration of technology is targeted
to penetrate the local market of Malaysia. The Tech Play Dough applications combine dough
with technology through interactive storytelling, entertaining games, and thousands of activities
for little inventors to accomplish. Tech Play Dough merges the physical and digital worlds to
encourage children to construct, design, and master their circumstances.

Tech Play Dough use multi-segment marketing to promote the product. To begin with,
the market is not over saturated, although we do have competitors. Second, we reach all possible
purchasers through marketing to our diverse variety of customers in various market segments.
Furthermore, if we market to such an online platform, our chances of growth would be
increased. Tech Play Dough's possibilities of growth are increased by marketing to all segments,
and our market dominance is sustained.

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 1.4 Competition

Tech Play Dough faced competition both direct and indirect ways from other products in
the market. Direct competitors offer slightly the same product as such the businesses are
competing for the same potential market. PlayDoh-Hasbro, Play Dough-My Toys and
Peipeile-MR DIY are our direct competitors that are already established in the market.
Meanwhile, indirect competitors are also one of our concerns no matter the product is not the
same but that could satisfy the same consumer need.

1.5 Financial Highlights

As for capital investment, each of our three shareholders will contribute RM 15,000.00,
so that the total capital will be RM 45,000.00. As each of us contributes the capital by sharing
among us, we didn’t apply for the loan from the bank. The start-up business capital we believe
is sufficient and no bank loan is needed until our business gains expected revenue from the high
stand and wants to expand our market. Tech Play Dough will be selling at the price of RM30.00
per 1kg and RM50.00 with kits.

2.0 Opportunity

2.1 Problem Worth Solving

Tech Play Dough becomes more popular for its edible ingredients that are safe to eat.
Tech Play Dough’s concern was the safety of store-bought playdough. Customers often
experience sticky and unpleasant-smelling play dough in the market. This will lead to food
poising especially for toddlers and children when they eat it. In addition, the present market
play dough is too basic and unattractive. Our Tech Play Dough is a play dough that collaborates
with the advancement of technology via applications that will attract indirect customers such as
toddlers and children. Tech Play Dough will collaborate with the Ministry of Education (MOE)
to introduce the Tech Play Dough Module in Malaysia’s education system like preschool and
kindergarten to nurture the playing and learning method.

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 2.2 Roadmap/Future Plan

Timeline 1 Year 3 Years 5 Years

Tech Play Dough will start
up business by using
Target online platform like
Facebook, Instagram and
Market
Tik Tok and application
such as Shopee and
Lazada
Tech Play Dough starts
home-based with manual
production and using
Planning simple equipment to make
the play dough
Utilize the online platform
such as Facebook,
Instagram, Tik Tok and
Advertisement application such as Lazada
and Shopee to promote
and spread the information
about our product
Tech Play Dough will be Tech Play Dough will
selling through our own extend the business by
physical stores selling at Toy “R” Us,
Janie & Joe Toys and
Mighty Utan Malaysia
Tech Play Dough will Tech Play Dough will
rent a store that is full invest to have more
with equipment for capital asset by having
operation, packaging and own factory for
quality inspection manufacturing,
production and
operation
Having our own website Enhance our promotion
and increase public strategy through email
awareness by marketing and content
collaborating with the marketing
ambassador, influencer
or public figure

Table 1: Future Plan

3.0 Market Analysis Summary

3.1 Market Segmentation

3.1.1 Demographic

The main target market for our business is parents and teachers as well as our direct
customers. While our indirect customers range from toddlers (1 to 3 years old), children (4 to 6
years old), primary school students (7 to 12 years old), secondary school students (13 to 17 years
old) and even university students. Underage mostly uses our products for their learning and
development purposes while adults use it as stress reliever tools.

3.1.2 Geographic

Firstly, we segment our customers in the state of Malacca with a land area of
1,712 km². Then we plan to expand our market to East and West Malaysia before we

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 penetrate the Asian region. By using an online platform that can connect people across
geographic borders, we believe we can meet a huge demand in the Malaysia region.

3.1.3 Psychographic

We are also segmenting the market to the concerned parents that looking for safe,
natural and unique sensory play materials for their children. With some technological
innovations in our product, it will be more interesting to encourage teachers in school to fully
utilize our product for their students’ development.

3.1.4 Behavioral

Our loyal customers will treat with royalty by giving the membership customer a
special price during the special day. Our new attractive kits with different themes and
characters will be informed to our customers through an email regularly. We also target for
university students to use our product as a tool to build up their confidence during a
presentation.

3.2 Target Market Segment Strategy

We will focus on marketing through advertisement and communication on social media

which are trending nowadays to keep in touch with our customers frequently. We will continue
to develop in terms of product acceptance and meet our standards of excellence.

3.2.1 Market Needs

Our market needs are focusing in children’s development range age from 1 to 12 years
old. There are 64,052 children aged 1 to 12 years old in Malacca which are 32,982 boys and
31,070 girls. Besides that, the market will largely be dominated by educational institutions
which are expected to expand faster once our product penetrates the educational module
system. There are currently almost 647 preschools, 238 primary schools and 82 secondary
schools in Malacca based on statistics taken from Malacca Pocket Stats ST1 2021,
Department Statistic of Malaysia (DOSM) that are believed will utilize our product.

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 3.2.2 Market Trends

Due to the advancement of technology, Tech Play Dough has advantages when in
following the current trends in which most people use phones and tablets a lot in daily life.
Tech Play Dough had a collaboration with technology to play it with special applications
and tablets. Tech Play Dough will be a very attractive tool for all parents to ensure their
children’s development. Almost 98.5% of the people in Malacca use handphones, which
indirectly will have a huge impact on our Tech Play Dough.

3.2.3 Market Growth

Tech Play Dough’s estimate will be launched in 2023 with revenue is RM136,500.00
(1,500 units). Therefore, our Tech Play Dough will be available at affordable prices and
more worth rather than other playdough products in the market. Customers can evaluate the
innovation differences in our Tech Play Dough with other playdough products in the current
market. Tech Play Dough will ensure customers satisfaction is achieved by giving 6 months
warranty, a membership discount of 10% for a third purchase and various attractive kits to
meet customer preferences.

3.3 Key Customers

We are targeting parents who are the person that controls their children’s toys to play with
because every parent has a desire to ensure their children grow and excel. The distribution of
household income in Malacca shows that our Tech Play Dough is affordable for all parents in
Malacca. Almost all parents in Malacca can buy our Tech Play Dough even for the B40 class.
In addition, education consumers also contribute to the use of Tech Play Dough. Tech Play
Dough offers many benefits for students including developing fine motor skills, enhancing
hand-eye coordination, improving social skills, promoting literacy and numeracy, encouraging
creativity and a calming effect. Teachers will use Tech Play Dough as an attractive form of
teaching to make it more interesting for students. The advantage of this customer mix is that
the business remains constant throughout the year. By addressing multiple market segments,
Tech Play Dough is also not overly dependent on a single consumer group.

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3.4 Future Markets

The Tech Play Dough market will grow moderately in the first year and it will grow
massively for the next year after our Tech Play Dough successfully penetrates the education
sector. Parents will be more interested in educational toys for their children while teachers in
schools are looking for the Tech Play Dough as used in their teaching module. New competitors
will start to enter the market and Tech Play Dough needs to stand out from the competitors.
Some of them might come with very cheap prices to gain a competitive advantage and win
customers’ hearts. However, Tech Play Dough will maintain its aims of providing good quality
safe toys, affordable price, on-trend innovation and attractive various kits to meet customers
satisfaction in the market. We will regularly make an improvement on Tech Play Dough to stay
competitive in the market through social media medium. With this continuous improvement
and further development, we strive for our Tech Play Dough to be known in the market within
5 years before we expand into the Asian regions.

3.5 Competition

3.5.1 Competitors and Analysis

PlayDoh-Hasbro Play Dough-My Toys Peipeile-MR DIY

Figure 1: Direct Competitors

PlayDoh is a well-known brand for playdough from the United State of America and
has already established its product in Malaysia. PlayDoh-Hasbro is a company that sells
PlayDoh products in Malaysia and is located in Petaling Jaya, Selangor. They sell the
traditional ordinary playdough. They also just sell the playdough itself with no additional
kits and themes. They offer ready-made playdough in various colours and can last up to 5
years. Customers can purchase their playdough either in store or online.

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 Play Dough-My Toys is a local toy company selling playdough in Malacca and has
two branches located in Cheng and Ayer Keroh. They sell various toys and also provide
organic playdough to the children. This organic playdough is safe and lasts up to 6 months.
Play Dough-My Toys comes with limited themes of playdough as they have other toys to
focus on and they did not sell the playdough separately as it comes in a set depending on the
theme. The selling price is quite expensive compared to other products in the market which
is rm150.00 per set. Customers can purchase their playdough either in store or online.

Peipeile-MR DIY is a well-known shop in Malaysia. Peipeile-MR DIY offers ready-

made organic playdough in the market and also targets parents to buy their products.
Although the playdough is non-toxic and made from organic materials it is still not edible
due to its high salt content. Their products are affordable for all parents but there are no
additional kits. They also just focus on selling the playdough with limited colours which are
blue, red, green and yellow. Peipeile-MR DIY can be bought either in store or online.

3.5.2 Our Advantages

Tech Play Dough’s competitive advantage is that it is 100% organic playdough that is
safe for children’s toys and it also collaborates with technology. Tech Play Dough is
designed to be played with a special application using an electronic gadget that will be
created separately by our expert. Tech Play Dough will seize the opportunity due to the
advancement of technology in our world today. Tech Play Dough also comes with various
kits and themes that will be very interesting for the children. Children get more creative
when they play our various themed Tech Play Dough in their imaginary world. We also
distinguish Tech Play Dough from other brands through our unique packaging and various
selection of sets sold. Therefore, it will be affordable for everyone where they can buy it
depending on their needs and financial capabilities. We believe that Tech Play Dough can
stand out from other playdough brands with this uniqueness.

3.5.3 SWOT Analysis

3.5.3.1 Strengths

Tech Play Dough has offered a unique product that is made from completely
organic materials and does not harm children. Tech Play Dough has been made with the

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best quality materials and collaborates with technology to become an attractive innovative
good product. The variation of colours, kits and themes will also attract customers’
intention towards our product where it can be more interesting for the children’s
development process. Most importantly, our Tech Play Dough is affordable for all parents
and can be purchased through in store or online.

3.5.3.2 Weaknesses

Tech Play Dough is made of organic materials and this might not long lasting
compare to other products that used chemical materials. Thus, our company needs to keep
on researching this issue regularly. The biggest challenge for our company is that we are
new to the market where we have to compete with other well-known companies or
products. To overcome this issue, marketing plan is very crucial.

3.5.3.3 Opportunities

Social media plays a big role in today’s marketing world. So, we will use this
opportunity wisely to win customers over. Technological advancement makes it easier
for us to deal with customers, produce our Tech Play Dough and the most important thing
is to get feedback from our customers. Feedback from our customer can be easily
collected online.

3.5.3.4 Threats

The threat faced by Tech Play Dough is many competitors in the market nowadays
sell the same product even locally or overseas. So, our company had to compete with each
other to promote our playdough to the customers. This is because some products had a
well-known brand and already has their loyal customers. Besides that, playdough has to
compete with others educational toys like slime, Lego, puzzles and pop it fidget toys
which are increasing in the market. The pandemic also had an impact on the country’s
economy and reduced sales of most products in the market as people become more
cautious of viruses.

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4.0 Execution

4.1 Marketing Plan

4.1.1 Product

Tech Play Dough is an organic clay that combines with the technology. It is made from
natural ingredients such as flour, salt, food colouring and oil. Tech Play Dough is created
with the collaboration of applications. The user may download the application via Google
Play Store and Apps Store. The function of applications is to show how to shape the dough
with different style with different size and colours. Holding and squeezing the play dough
can produce a calming effect on the students and is useful for teaching anger management.

4.1.2 Price

Tech Play Dough has used cost-plus pricing strategy by simply calculating our costs
and adding a mark-up. The details of cost and profit calculation will be discussed in financial
plan. To sum up, we have charged RM30.00 per kg and RM50.00 for play dough with kits.

4.1.3 Place

Tech Play Dough will be selling through online platforms such as social media and
applications. Tech Play Dough will use Facebook, Instagram and Tik Tok to promote our
brand. Tech Play Dough will also use applications such as Shopee and Lazada.

4.1.4 Promotion

There are five methods that make up a promotional mix which is sales promotion,
advertising, public relation and sponsorship, personal selling and direct marketing. Tech Play
Dough will utilize the form of sales promotions by offering special discount for the early
birds. 10- 15% discount will also be given during birthday month, festival and off-peak
season. We also focus on social media marketing, influencer marketing, email marketing
and content marketing.

4.2 Location and Facilities

We will not have a physical store at this time, but we will sell our Tech Play Dough
through E-commerce. The purchasing and selling of goods and services over the internet, as

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 well as the transfer of money and data to complete these transactions, has become a prevalent
method. In terms of facilities, our production facility will be in Batu Berendam, Melaka.

4.3 Technology

The technology that we are going to use is an Inkjet Printer which used in packaging.
Next, we use networking technology. Devices and endpoints can be connected to each other
on a local area network (LAN) or to a larger network, such as the internet or a private wide area
network, using computer networking (WAN). We may send files, messages, and other data via
e-mail or other channels, and share information via the Internet, through the networking.
Furthermore, we use technology in communication, such as WhatsApp, as our primary mode
of communication.

4.4 Equipment and Tools

We will use Automatic Play Dough/ Plasticine/Modelling Clay Extruder Flow Packaging
Machine. Its function is for packaging, sealing, cutting, wrapping, filling and forming the
process of making the dough. In our business, we have used a laptop. For us to engage in
numerous productive jobs, such as marketing practises, we need a laptop. Furthermore, it is the
safest place for storing our business information for a longer period of time.

5.0 Company and Management Summary

5.1 Organizational Structure

Chief Executive Officer

Nurakmal Hassan

Human Resource/Operation Marketing/Financial

Manager Manager
Nur Ezarina binti Norshahira binti Shaharin
Muhammad Shyfri

Figure 2: Tech Dough Sdn Bhd Organization

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5.2 Management Team

Tech Dough Sdn Bhd is owned and managed by three persons as a partnership. The Chief
Executive Officer (CEO) of the company responsible in all the activities and decisions that
involved directly or indirectly in the company. At the beginning of our start-up company, two
partnerships will hold on two responsibilities due to the shortage of staff. However, the
organizational structure of Tech Dough Sdn Bhd is being revised from day to day, depending
on our company's development.

Chief Executive Officer (CEO)

Name : Nurakmal bin Hassan
Age : 34 years old
Qualification : Master in Business Administration
Skills : Leadership and management skills
Present Occupation : Army Officer
Working Experience : 15 years
Human Resource/Operation Manager
Name : Nur Ezarina binti Muhammad Shyfri
Age : 30 years old
Qualification : Master in Business Administration
Skills : Managemnet and technical skills
Present Occupation : Executive Factory Officer
Working Experience : 8 years
Marketing/Financial Manager
Name : Norshahira binti Shaharin
Email Address : shira_ctrm@gmail.com
Age : 32 years old
Qualification : Master in Business Administration
Skills : Communication and financial skills
Present Occupation : Accountant
Working Experience : 10 years
Table 2: Management of Tech Dough Sdn Bhd

5.3 Personnel Plan

Since our business is still new to the market, we decided to start on a small scale. Tech
Dough Sdn Bhd will be doing online sales before we set up our physical store. We will enlarge
the business by getting corporate partnerships venture, direct investment activities and develop
strategies for the long-term financial goals.

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 5.4 Company History and Ownership

Figure 3: Tech Play Dough Logo

Tech Dough Sdn Bhd was founded in February 2021. Tech Play Dough is the first high
quality organic playdough that collaborate with technology in our Malaysian market. We take
this as a unique opportunity to be relevant in the market. Basically, the logo is a combination
of playdough and robotic to show our new innovation in playing the playdough. ‘A Child’s Best
Teacher’ is our product slogan where we believe that Tech Play Dough will bring great benefits
to our children’s development.

5.4.1 Vision

To be the dominant retailer of educational toys playdough for children in Asia offering
the right product, at the right price, in the right place, at the right time in a beneficial, safe
and enjoyable environment.

5.4.2 Mission

To provide a great educational toys and entertainment products that are enjoyed by
people of all ages at an affordable price then become the most preferable choices among
people.

6.0 Financial Plan

6.1 Financial Question to Consider

As entrepreneurs in Malaysia, Tech Play Dough have to do market research analysis and
study Malaysia economic growth. For 2021, the domestic economy is on track to expand by
3.0% - 4.0%. Moreover, the various relaxations of restrictions for fully vaccinated individuals

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and in addition, the strength in global demand will continue to support export growth. Going
forward into 2022, Malaysia’s growth trajectory is expected to improve further due to Malaysia
effectively contain the COVID 19 outbreaks. Tech Play Dough will ensure customer’s needs
and wants are fulfilled and treat all our potential customers as valued and long-term relationship
customer, so that they will help us to gain more revenue.

6.2 Revenue or Sales Forecast

Profit and Loss Assumption

2023 2024 2025 2026 2027
Annual cumulative price increase 0.00% 4.00% 8.00% 12.00% 16.00%

Month FY2023 FY2024 FY2025 FY2026 FY2027

January 5,688 5,916 6,389 7,155 8,300
February 5,688 5,916 6,389 7,155 8,300
March 17,062 17,744 19,164 21,464 24,898
April 11,375 11,830 12,776 14,310 16,599
May 11,375 11,830 12,776 14,310 16,599
June 17,062 17,744 19,164 21,464 24,898
July 5,688 5,916 6,389 7,155 8,300
August 17,062 17,744 19,164 21,464 24,898
September 11,375 11,830 12,776 14,310 16,599
October 11,375 11,830 12,776 14,310 16,599
November 5,688 5,916 6,389 7,155 8,300
December 17,062 17,744 19,164 21,464 24,898
Total 136,500 141,960 153,317 171,715 199,189

The sales forecast is predicted for five years is which is from year 2023 until year 2027
which is shown in above based on profit and loss and assumption based on 4% of annual
cumulative price increase. There are some months Tech Play Dough will increase during school
holiday which are:

Term 1 Holiday : 13 Mar 2023 – 21 Mar 2023.

Mid-Year Holiday : 22 May 2023 – 06 June 2023.
Term 2 Holiday : 24 Jul 2023 – 01 Aug 2023.
End of Year Holiday : 20 Nov 2023 – 31 Dec 2023.

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Sales forecast by product illustrated in table below:

Product FY2023 FY2024 FY2025 FY2026 FY2027

Tech Play Dough 45,000 46,800 50,544 56,609 65,667
Tech Play Dough + Math Kit 25,000 26,000 28,080 31,450 36,482
Tech Play Dough + Science Kit 25,000 26,000 28,080 31,450 36,482
Tech Play Dough Matt 12,500 13,000 14,040 15,725 18,241
Smart Application subscription fees 5,000 5,200 5,616 6,290 7,296
Long Term Contract with MoE 24,000 24,960 26,957 30,192 35,022
Total Revenue 136,500 141,960 153,317 171,715 199,189

6.3 Start-Up Expenses and Monthly Expenses

As for capital investment each of our three shareholders will contribute RM 15,000, so
that the total capital will be RM 45,000. Tech Play Dough profit will able to return the higher
value to our investors because of we will fully utilize the hard and soft marketing. Based on
research 86% population in Malaysia are using social media. Therefore, online platform will be
our main medium to reach the consumer in the beginning of our business. By launch the Tech
Play Dough product in market, it is expected that our sales will continue to accelerate in the
next three years. Moving forward plan for our business is to have one stop learning center for
children to play and learn.

Cost Quantity UoM Unit Price Total

A. Capital Expenditure
Mixing Machine 2 Unit 5,000 10,000
Spatula 2 Unit 10 20
Printer 1 Unit 3,724 3,724
Office Table + Chair 1+3 Unit 480 480
Long Table 2 Unit 240 480
Rack + Shelves 1 Unit 840 840
Dustbin 1 Unit 60 60
B. Direct Material
Flour 125 Kg 3.6 450
Sugar 15 Kg 2.5 38
Salt 5 Kg 0.8 4
Oil 1 Liter 22 22
Cream of Tar Tar 5 Kg 15 75
Food Coloring 10 Bottle 2.2 22

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Electric Circuit 50 Unit 5 250
LED light 50 Unit 0.5 25
Buzzer 50 Unit 1 50
Play Matt 50 Unit 5 250
Packaging material 50 Unit 0.2 10
C. General Overheads
Direct Labor cost 1 Manpower 1,200 1,200
Rental Fees 1 Shop Lot 1,200 1,200
Utilities 1 500 500
D. Operating Expenditure
SSM Business Registration 1 Unit 60 60
CCM Business Registration 1 Unit 30 30
Transportation 1 Unit 500 500
Personnel Labor 1 Manpower 1,200 1,200
Stationery 1 Unit 200 200
Website Development 1 Unit 2,000 2,000
Marketing and advertisement 1 Unit 2,500 2,500
Application development 1 Unit 5,000 5,000
31,189.50
E. Contingency cost (10%) 10% 3,118.95
Total project Implementation 34,308.45

6.3.1 Monthly Expenses

Monthly expenses are divided into three cost which are direct material, direct labour,
general overheads and operating expenses that Tech Play Dough need to incur every month
to ensure the product produce meet the forecasted demand in our sales projection.

Cost Quantity UoM Unit Price Total

A. Direct Material
Flour 125 Kg 3 375
Sugar 15 Kg 2.5 38
Salt 5 Kg 0.8 4
Oil 1 Liter 22 22
Cream of Tar Tar 5 Kg 12 60
Food Coloring 10 Bottle 2.2 22
Electric Circuit 50 Unit 5 250
LED light 50 Unit 0.5 25
Buzzer 50 Unit 0.8 40
Play Matt 50 Unit 5 250
Packaging material 50 Unit 0.2 10
B. General Overheads

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 Direct Labor cost 1 Manpower 1,000 1,000
Rental Fees 1 Shop Lot 1,200 1,200
Utilities 1 500 500
C. Operating Expenditure
Personnel Labor 1 Manpower 1,000 1,000
Total Project Implementation 4,796

6.3.2 Project Implementation Cost Schedule for First Month

The project implementation cost for the first month is RM 4,796 and is shown in the
table above. Since our marketing is solely through social media such as Facebook, Instagram
and Tik Tok the cost will be much cheaper and affordable for the startup in small business.
Our working office and production will be in a shop lot that will be rented for RM1, 200 per
month at area Batu Berendam, Melaka. Lastly, we are sharing the start-up modal among
ourselves so there is no any loan with bank.

6.4 Projected Profit and Loss For 5 Years

INCOME
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue
Tech Play Dough 45,000 46,800 50,544 56,609 65,667
Tech Play Dough + Math Kit 25,000 26,000 28,080 31,450 36,482
Tech Play Dough + Science Kit 25,000 26,000 28,080 31,450 36,482
Tech Play Dough Matt 12,500 13,000 14,040 15,725 18,241
Smart Application subscription fees 5,000 5,200 5,616 6,290 7,296
Long Term Contract with MoE 24,000 24,960 26,957 30,192 35,022
Total revenue 136,500 141,960 153,317 171,715 199,189
A. Capital Expenses
Mixing Machine 10,000 9,000 7,200 5,040 3,024
Automate Play Dough Mixing Machine 15,000 13,500 10,800
Spatula 20 20 20 20 20
Printer 3,724 3,352 2,681 1,877 1,126
Office Table + Chair 480 432 345 241 145
Long Table 480 432 346 242 145
Rack + Shelves 840 756 605 423 254
Dustbin 60 54 43 30 18
Total Capital Expenses 15,604 14,046 26,240 21,374 15,533
B. Direct Material
Flour 4,500 4,590 4,774 5,060 5,465
Sugar 450 459 477 506 546

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Salt 48 49 51 54 58
Oil 264 269 280 297 321
Cream of Tar Tar 720 734 764 810 874
Food Coloring 264 269 280 297 321
Electric Circuit 3,000 3,060 3,182 3,373 3,643
LED light 300 306 318 337 364
Buzzer 480 490 509 540 583
Play Matt 3,000 3,060 3,182 3,373 3,643
Packaging material 120 122 127 135 146
Total Direct Material 13,146 13,409 13,945 14,782 15,965
C. General Overheads
Direct Labor cost 12,000 12,240 12,730 13,493 14,573
Rental Fees 14,400 14,688 15,276 16,192 17,487
Utilities 6,000 6,120 6,365 6,747 7,286
Total Overheads 32,400 33,048 34,370 36,432 39,347
Total Cost 61,150 60,503 74,556 72,588 70,844
Gross Profit 75,350 81,457 78,761 99,126 128,345
D. Operating Expenditure
Personnel Labor 2,400 2,448 2,546 2,699 2,915
Sales and marketing 2,500 2,550 2,652 2,811 3,036
Administrative fees (SSM & CCM) 90 92 95 101 109
Total operating expenses 4,990 5,090 5,293 5,611 6,060
Net Profit (Profit /Loss) 70,360 76,368 73,468 93,515 122,285

6.5 Projected Cash Flow

Description Year 1 Year 2 Year 3 Year 4 Year 5

Cash Inflow
Owner's Capital 45,000
Net Profit 70,360 76,368 73,468 93,515 122,285
Total Cash Inflow 115,360 76,368 73,468 93,515 122,285
Cash Outflow
A. Total Capital Expenses 15,604 14,046 26,240 21,374 15,533
B. Direct Material 13,146 13,409 13,945 14,782 15,965
C. Overheads 32,400 33,048 34,370 36,432 39,347
D. Operating Expenses 4,990 5,090 5,293 5,611 6,060
Total Cash Outflow 66,140 65,592 79,849 78,199 76,904
Cash Surplus/Deficit 49,220 10,775 -6,381 15,316 45,382
Beginning cash balance 0 49,220 59,995 53,614 68,930
Ending cash balance 49,220 59,995 53,614 68,930 114,312

Tech Play Dough will invest for advance machine and equipment for produce our play
dough which is Automated Play Dough and Packaging amounting RM15, 000.

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6.6 Projected Balance Sheet

Description Year 1 Year 2 Year 3 Year 4 Year 5

Fixed Asset 15,604 14,046 26,240 21,374 15,533
Current Asset 49,220 59,995 53,614 68,930 114,312
Total Asset 64,824 74,041 79,855 90,304 129,844
Equity
Capital 45,000 45,000 45,000 45,000 45,000
Retained Earning 19,824 29,041 34,855 45,304 84,844
Current Liabilities 0 0 0 0 0
Long Term Liabilities 0 0 0 0 0
Total Equity and Liabilities 64,824 74,041 79,855 90,304 129,844

6.7 Break-Even Point

6.7.1 Break Even Analysis

Tech Play Dough average monthly’s earning estimation is about RM11, 375 hence
when we deduct the monthly expenditure, the net profit will be RM6, 579. This mean Tech
Play Dough the break-even Point.

Sales for year 2023 : RM136, 500/12 = RM11, 375.

Monthly earning : RM11, 375.
Monthly expenditure : RM4, 796.
Net Profit Gained : Monthly earning – Monthly expenses.
: RM11, 375 – RM4, 796.
: RM6, 579.
Start-up cost : RM34, 308.45.

In order to reach the break-even point, the Total Cost must be equal to Total Revenue.
Total cost : RM34, 308.45.
Total Revenue : RM6, 579.
Break-even point, x : RM6, 579x = RM34, 308.45.
: x = RM34, 308.45 / RM6, 579.
: x = 5.214 ~ 5 Months 6 Days.

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6.8 Business Ratio

6.8.1 Equity Ratio

The equity ratio is an investment laverage that measures the amount of asset that are
personally finance by the owner. The equity ratio can be measured by comparing the total
equity to the total asset of company.

Equity Ratio = Total Equity x 100

Total Asset
Equity Ratio = RM 64, 824 x 100 = 100%
RM 64, 824

6.8.2 Gross Profit Margin

Gross profit margin is a profitaility ratio that measure the amount of money left after
after paying the direct cost.
Gross Profit Margin = Total Revenue – Total Direct Cost x 100
Total Revenue

2023 2024 2025 2026 2027

90.4% 90.6% 90.9% 91.4% 92.0%

6.8.3 Return of Investment (ROI)

This ratio will show the amount of money invested and the value received back from
the result of investment.

ROI = Net Profit x 100

Total Asset

2023 2024 2025 2026 2027

70,360 x100 76,367 x100 73,468 x100 93,515 x100 122,286 x100
64,824 74,041 79,855 90,304 129,844
109% 103% 92% 104% 94%

The figure shows the return of investment made by the company in 2025 is only 92%
this is due to investment made in the third year operation, which is to buy the automated
mixing and packaging machine.

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