1.

0 EXECUTIVE SUMMARY

Grab & Go (G&G) Enterprise a Bandar Hilir, Melaka based restaurant business that makes
use of food truck to sell various menu of food and drinks served in cups; basically light meals
to different category of clients on the go. G&G Enterprise expects to catch the interest of a
regular loyal customer base everywhere (beach, picnic ground, carnival ground, sports
complex etc.) with its broad variety of grab-and-go food and drink products.

The company is mainly concerned about providing good quality food and drink at a
competitive price to meet the demand of its middle-to-higher-income local market area
residents and tourists. Our other intention is to build a mobile food truck business brand,
which will help event organizers to worry less on how to provide a place where participants
at their event can get a quick meal. We intend working with managers of public facilities and
event planners throughout the Malacca State.

Despite the fact that this company will be based in Bandar Hilir, Malacca, areas where the
food trucks are covering will not be restricted to this city; the trucks will definitely cover the
whole of Malacca and even some neighbouring states (Selangor, Kuala Lumpur, Johor and
Negeri Sembilan) as long as it is cost effective for the company.

At Grab & Go Enterprise, the meals will be prepared, served and sold at a pocket friendly
price in a neat and hygienic environment. The health of the customers is of top most priority
to the company, which is why we do not intend to leave any stone unturned when it comes to
giving our clients the very best of services.

The founder of the company, Mr Hadi Nasrulhaq is seeking to raise RM 40000 from a bank
loan. The interest rate and loan agreement are to be further discussed during negotiation. The
financing will be used for the development of Grab & Go Enterprise’s food truck and
financing for the operation. Mr Hadi will contribute another RM40000 to the venture.

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2.0 INTRODUCTION

2.1 Company Background

Grab & Go is a Malacca based restaurant business that makes use of food truck to sell
various menu of food and drinks served in cups; basically light meals to different
category of clients on the go.. G&G expects to catch the interest of a regular loyal
customer base everywhere (beach, picnic ground, carnival ground, sports complex
etc.) with its broad variety of grab-and-go food and drink products.

Vision

To become the premier food truck choice for people who love to eat healthy,
high-quality, tasty, on-the-go food in the region and also globally.

Mission

To be the number one food truck company that meets the needs and demands
of today’s lifestyles by serving healthy, tasty, high-quality, on-the-go food to multi-
location locally.

Objective

To serve on-the-go food and drinks products quickly, cleanly and conveniently
to students, local residents, workers and tourists who prefers great on-the-go food and
drinks products.

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2.2 Business Intent
2.2.1 Products or Service Offered
We offer high quality, on-the-go food products. The food products we provide
is divided into three main categories; sweet, healthy and crispy. Our distinctive
feature can be seen through the way we serve our food as the food will be
served in cups instead of normal packaging. This concept is introduced by the
founder of the company, Hadi Nasrulhaq.

2.2.2 Market Needs

The market nowadays demands for healthy and tasty food to be served quickly
to where customers are on short notice. One of the purposes of this business is
to provide on-the-go food and drinks products quickly, cleanly and
conveniently to students, local residents, workers and tourists who prefer great
on-the-go food and drinks products to help fulfil their needs and also save their
time.

2.2.3 Degree of Innovation

G&G will constantly do food truck innovations in terms of our food products
and also our new, processes. We will come out with one-of-a-kind menus
probably every 2 to 3 months to keep the customers coming. In terms of
processes, we aim to improve our customer service by training our workers to
understand how to provide an exceptional customer service for our food truck
customers. All these innovations will be based on the feedbacks from the
customers and will be done to improve our food truck in the future.

2.2.4 Feasibility and Profitability

According to an IBISworld Report, the Food Truck Industry has grown an
average of 9.3% per year over the last 5 years. A brick and mortar restaurant
generally had a profit margin of 5-7% but food trucks boast a profit margin of
between 10-15%. This is due to reduced overhead and most food truck owners
and operators working long hours for their business.

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2.3 Growth Strategies
2.3.1 Financial Strategies
The business total start-up capital is RM 80000 with RM40000 contributed by
the owner and another RM40000 acquired from the bank loan. The capital is to
fund the development of the food truck and the operational expenses.

2.3.2 Technology and Product Development Strategies

 To have flawless mobilization for effective management
 To invest consistently in potential experts for better growth of the venture
 To bond with potential partners and investors
 To extend the business globally using online platforms

2.3.3 Marketing Strategies to Increase Market or Mind Share

 Capturing the attention of target market (prospects)
 Facilitate the prospect’s decision-making process
 Increasing the number of potential customers to increase the sales

2.4 Target Market

The research and the selection of suitable target market for our company, and where
our product can reap the most profit is of utmost important to us. We also have
developed an effective marketing strategy to ensure we could attract the most
customers. There are a few main targets that we have aimed for our product and a few
steps that we have to implement to attract these main target customers.

School students:

Our base of operation is around Bandar Hilir, Melaka, where there are a lot of primary
and secondary schools nearby us. Bandar Hilir is also one of the main spot for
students to come after their school hours and during weekends. Since the students are
from the younger generation, our product will have interesting designs and name to
attract them. We will also park our truck near the schools after the end of the morning
and evening session of school time.

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University Students:

There are also a lot of universities and colleges near to Bandar Hilir (e.g.: Universiti
Teknikal Malaysia Melaka (UTeM) city campus, UiTM city campus, MITCOST, etc.
These university students are usually busy but simultaneously like to try new and unique
things. Hence, our products will attract their attention as it is quick and unique. We will
distribute flyers and advertise in the social media to attract customers from this target
market. Our food truck will also be stopping at suitable locations near their locations from
time to time.

Local Residents and Workers:

Since our main base of operation will be in the city, and in Bandar Hilir, there will be a
lot of local residents that live and work around this area. We will run ads in the local
newspapers, and put up promotional banners at strategic locations around the city.
Distribution of leaflets around offices, shops, and restaurants will also be done to
disseminate the information about our venture.
Tourist:

Melaka is a tourist spot, where tourists from all over Malaysia and other countries come
to visit. This provides many potential customers for our business. As Bandar Hilir is one
of the main attractions for tourists that visit Melaka, we take advantage of this situation
by locating our truck at strategic locations and putting up banners all around Bandar Hilir.
There will also be advertisements on social media and at tourism agencies in order to
attract the tourists to buy our products.

2.5 Revenue Model

The product is paid via cash payment since it is the main method of payment in the food
industry. One way of the getting revenues for our company other than direct selling to the
customers at strategic locations is to cater the orders from the event planners (e.g.:
carnivals, food festivals). In future, we plan to increase the number of food trucks to serve
more of our potential customers.

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2.6 Operational Setup

 Provide the necessary funding

 Manage the daily operation cost

FINANCE  Prepares statements and reports of estimated future costs

and revenues
 Manage the capital request and budgeting processes
 Ensure the availability of ingredients for the production of
products
 Manage and control the daily production of foods and
PRODUCTION drinks
 Control the quality and the cleanliness of foods and drinks
 Do product R&D
 Facilitate growth, sales, and marketing strategies
 Prepare overall marketing strategy
 Develop segmentation, competitive analysis/market
MARKETING intelligence, prospecting, lead generation, product and
market development, pricing, promotions, communications
and budgets, sales force effectiveness, strategic planning,
services units and revenue retention and growth
 Oversee the day-to-day operations at food truck.
 Take customers’ orders, serve food and beverages, prepare
itemized checks, and accept payments.
WORKERS
 Respond to customer preferences and complaints
 opens and closes the truck, purchases food and beverage
inventory, opens the register, tracks inventory

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 2.7 Long Term Goals of Company
GRAB&GO enterprise plans to grow into one of the major company in Malaysia,
becomes a dominant player in the food truck industries and expands our enterprises
into a multinational company. Below is our general long term plans.

15 YEARS
10 YEARS
Becomes a
5 YEARS Become the
2 YEARS multinational
dominant company in
Become a major food company
Expand the business the market.
truck business in Have branches and
Open up more food Melaka Have branches and
food trucks
trucks food trucks
Expand throughout throughout the world
throughout Malaysia
Malaysia Expanding into
Ventures into others
various others
business
business ventures.

2.8 Market and Competitors Information

The food truck market in Malaysia is relatively new when compared to other types of
foods business, but nevertheless it is growing exponentially in the last several years.
The food trucks has been very popular especially among the younger generations as it
are considered to be cool, attractive and cater to the new trend in the market. Food
truck is suitably carried out to meet the needs of consumers nowadays The market is
large and growing, but the market slice is becoming smaller due to the large number
of new food trucks entering the market. Below is an example of several food truck
businesses in Melaka:

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 NAME OF COMPANY DETAILS
Goreng Pisang KBM  Sells banana fritters
Bunga Raya Popiah  Sells spring rolls
 Location: Jalan Bunga Raya
Cendol Durian Bachang  Sells “cendol durian”
 Location: Bachang
Burger Giler Power  Famous around Kuala Lumpur area
 Expanded to Melaka
 Sells western cuisine

2.9 SWOT Analysis

Below is our SWOT analysis for G&G Enterprise:

Strengths Weaknesses
 Unique concept  New to the market
 Variance  High start-up cost
 Affordable  Relatively new
 Experienced workers  Weak branding image
 Interesting design
Opportunities Threats
 Large market  Existing local food truck competitors
 New and growing market in Malaysia  Famous restaurants and food outlets
 High potential for growth all over Melaka
 New entrants

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3.0 EMPLOYMENT OF KNOWLEDGE WORKERS
3.1 Management Team

President
Name Hadi Nasrulhaq bin Abdul Razak
Identity card number 970221-14-6079
Permanent address Lot 386-1, Jalan Kg. Tengah 7 Bt 6 ½ off Jalan Gombak,
53100 Kuala Lumpur, Selangor.
Email address hadi.h.razak@gmail.com
Telephone number 01128043998
Age 19
Academic qualification Undergraduate of Bachelor in Technopreneurship,
Universiti Teknikal Malaysia Melaka.
Skills 1. Capable to communicate well and possesses great
leadership skills.
2. Able to make the right decision.
Experience Barista at McDonald’s

Vice President
Name Nurin binti Aris
Identity card number 971023-14-5782
Permanent address 7 Jalan 3/37 Seksyen 3, 43650 Bandar Baru Bangi,
Selangor
Email address nurinaristusimin@gmail.com
Telephone number 0173866885
Age 19
Academic qualification Undergraduate of Bachelor in Technopreneurship,
Universiti Teknikal Malaysia Melaka.
Skills 1. Have the ability in planning skills.
2. Capable in generating creative ideas.
Experience Salesperson at Ariani boutique

Human Resources Manager

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Name Syafiqah Athirah binti Abd Razak
Identity card number 960927-04-5676
Permanent address Jb 2108, Jalan Seri 16, Taman Seri Serkam, 77300
Merlimau, Melaka.
Email address syafiqahathirah2796@gmail.com
Telephone number 0176665420
Age 20
Academic qualification Undergraduate of Bachelor in Technopreneurship,
Universiti Teknikal Malaysia Melaka.
Skills 1. Have skills in management.
2. Developing rapport with employees.
Experience Assistant Supervisor at Parkson

Finance Manager
Name Tan Jia Qi
Identity card number 960306-01-6194
Permanent address 48, Jalan Bintang, Taman Koperasi Bahagia, 83000 Batu
Pahat, Johor.
Email address qi0899@gmail.com
Telephone number 0177660899
Age 20
Academic qualification Undergraduate of Bachelor in Technopreneurship,
Universiti Teknikal Malaysia Melaka.
Skills 1. Capable to produce detailed financial reports.
2. Good computer skills.
Experience Admin at Kaseh Ayu Qaisara Sdn Bhd

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Marketing Manager
Name Muhammad Zaim Sirajuddin bin Nor Azaruddin
Identity card number 970117-08-5173
Permanent address Lot 2336, Jalan Aman 6, Rpt Desa Seri Iskandar, 32610
Seri Iskandar, Perak.
Email address muhdzaim2665@gmail.com
Telephone number 0143204600
Age 19
Academic qualification Undergraduate of Bachelor in Technopreneurship,
Universiti Teknikal Malaysia Melaka.
Skills 1. Excellent spoken and written communication skills
2. Able to think of new and exciting idea.
Experience Chef assistant at a restaurant

Production Manager
Name Nur Alya Dayana binti Rosli
Identity card number 970202-46-5234
Permanent address 533, Jalan Idaman 2/8, Taman Desa Idaman, 81400 Senai,
Johor.
Email address nuralyadayanarosli@rocketmail.com
Telephone number 01125806072
Age 19
Academic qualification Undergraduate of Bachelor in Technopreneurship,
Universiti Teknikal Malaysia Melaka.
Skills 1. Logical and systematic work style.
2. Able to react calmly under intense pressure.
Experience Sales assistant at stationery shop

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Finance Assistance
Name Eleeza F. Natasya binti Khairul Herman
Identity card number 970810-07-5096
Permanent address 8672. Jalan Merak 4, Bandar Putra, 81000 Kulaijaya,
Johor.
Email address eleezaf97@gmail.com
Telephone number 0137247801
Age 19
Academic qualification Undergraduate of Bachelor in Technopreneurship,
Universiti Teknikal Malaysia Melaka.
Skills 1. Have an ability to manage teams.
2. Have good skills in using computers.
Experience Admin at GH Holdings

Marketing Assistance
Name Ahmad Asyraf bin Azizan
Identity card number 960121-09-5009
Permanent address No. 53, Lorong Cempaka Kg Baru Bukit Chabang, 02100
Padang Besar, Perlis.
Email address asyraf_azizan96@yahoo.com
Telephone number 0174633096
Age 20
Academic qualification Undergraduate of Bachelor in Technopreneurship,
Universiti Teknikal Malaysia Melaka.
Skills 1. Excellent spoken and written communication
skills.
2. Have influence in social media.
Experience Salesperson at Giant

3.2 Organizational Chart

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 PRESIDENT
Hadi Nasrulhaq bin
Abdul Razak

VICE PRESIDENT
Nurin binti Aris

HUMAN RESOURCES MARKETING PRODUCTION

MANAGER MANAGER MANAGER
FINANCE MANAGER Muhammad Zaim
Syafiqah Athirah binti Tan Jia Qi Nur Alya Dayana
Abd Razak Sirajuddin binti Rosli
bin Nor Azaruddin

FINANCE MARKETING
ASSISTANT ASSISTANT
Eleeza F. Natasya binti Ahmad Asyraf
Khairul Herman bin Azizan

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3.3 Human Resource Plan

Position/Role 2016 2017 2018

Chairman/CEO
President 1 1 1
Vice President 1 1 1

Position/Role 2016 2017 2018

Human Resources Division
Human Resources Manager 1 1 1
Assistant 0 1 1

Finance Division
Finance Manager 1 1 1
Assistant 1 1 2

Marketing and Sales Division

Marketing and Sales Manager 1 1 1
Assistant 1 2 3

Production Division
Production Manager 1 1 1
Assistant 0 1 2

Chef 2 2 2
Total Number Of Worker 10 13 16
Total Knowledge Of Worker 10 13 16

% Of Knowledge Worker 100% 100% 100%

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4.0 PRODUCT AND SERVICE DEVELOPMENT
4.1 Product/Services/Technology overview

The product that our company produce is food served in cups. We have created several
food categories; Healthy Cup, Crispy Cup and Sweet Cup. Healthy eating means eating a
variety of foods that give you the nutrients you need to maintain your health, feel good,
and have energy.

The main serving for Healthy Cup is fresh mixed salad filled dressed with our special
homemade dressings. Our salad recipes are a delicious and healthy because we use
different ingredients and seasoning to make one of the most joyous healthy salad recipes.
Other than that, we also provide delicious and refreshing drink as our beverage products.
We serve Apple Cooler, Fruity Lemon Soda and Chocolate Volcano with a special price.

Next, other than juice and vegetable, we also sell Waffle-In-A-Cup for our Sweet
Cup. The waffles come in a lot of flavours such as peanut butter, chocolate, butter, etc.
We aim to serve the freshly made waffles to the customers in a short period of time.

For our Crispy Cup, one of the menus that will be served is Chicken Popcorn. The
crunchy bite-sized pieces of chicken are dusted with a special mix of seasoning which
makes them quite addictive; hence it’s a good snack for the customers. Other than that,
we also serve various flavours of soft drink with ice cream on top. Our customers can
pick any ice cream flavours and soft drinks that they want like cherry chocolate, orange
cream, caramel macchiato and even old-fashioned ice cream sodas.

Our business truck will operate from 9am to 6 pm during weekdays, and during weekend
we will operate from 9 am to 9 pm which is 12 hours of operating hours. We will change
our location once in a while to cater all the customers living Melaka and in the
neighbouring states.

4.1.1 Current Development

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 We currently start up our company business operation at Bandar Hilir, Melaka. This is
because Bandar Hilir is really close to the city. It is a really strategic place where we
can get our raw materials needed to make our product and also helps in the promotion
of our product because there are a lot of people in the city especially during the
weekends. Besides that, we asked some feedbacks from customers that we meet in
ways to provide better product.

4.1.2 Product Strategy for Current and Future

Currently, we put our focus in promoting our services to public by using social media.
Today, we only provide 5 kind of menu which is mixed salad, drinks, waffle, chicken
popcorn and also soft drink with float ice cream. This is one of our competitive
advantage compared to other companies because our menu is different from other
product and we provide a quick services. Other than that our menu also been served in
a cup which you just grab and go at once. Using the advantages we really sure that it
will become something big in Malaysia market. In future, our product that we provide
will be well known in Malaysia market as a dominant company. We will run a full
time service not just only in weekend and we also plan for the next 4 or 5 years to
expand our truck to café. We will increase our production and generate more profit to
grow our business and with the money we plan to add more food truck open around
Kuala Lumpur and Johor Bharu.

4.1.3 Intellectual Property

G&G cup has been design to make it look simple and unique but attractive to the
customer and the patent and trademark has been registered with IPLCCA. This will
prevent unscrupulous competitors to from copying our product patent.

4.1.4 Process Flow Chart for G&G Enterprise’s Food Production

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 Receive order from customer

Select ordered food and put into the right size of cup

Check next item being ordered

Fill up with drinks as being ordered

Check order list to verify all ordered item are include

Receive payments

Shipping to the customer

4.2 Research and Development (R&D)

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 In order to make our business sustain, our company must follow the trend of
technologies and customer needs. Our company has put some great effort in
research and development for our services. As a student, we will use all the
knowledge that we learn in the lecture session to improve our product for future
need. We will focus more on technology by using high technology to make our
business runs smoothly and try to reduce the cost of production. Besides that, we
also try to create our own new recipe. We will also serve some high-quality eats
on the streets, with a mission to expand local palates with eclectic cooking
techniques and worldly cuisine.

We also try to reduce the cost of production by try to go green. The R&D is
really important to improve our services quality and to make sure our services are
always up to date. Finally, as a company with limited resources and capital, we
try to find other companies that are willing to sponsor our R&D.

4.3 Benefits and Customers Value

Our company provide products that are convenient to people which food-in-a-cup.
Other than that, our customers can easily locate us because our truck will move to
several locations based on the customer demand. Customer can also make their
order or request through the website. What makes our product better is we provide
fresh healthy, crispy food and sweet food quickly. Our customers can save their
time not having to wait for the food because the food is already been prepared in
the cups. We also provide a package for our customers. Furthermore, we will also
try to respond to all the feedbacks from the customers to improve our business
product.

5.0 MARKETING PLAN

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5.1 Marketing Overview
5.1.1 Market Trends
In this present era, more people working class, professionals, students, can no
longer create the time to attend to pressing matters. This development also
includes cooking and preparation of meals.Food truck is suitably carried out to
meet the needs of consumers nowadays.
5.1.2 Market Segmentation
Demographic
 The product is suitable for customers from all group of ages
 The product is suitable for both for male and female
 Open for all sorts of occupations (e.g.: students, managers, clerk)
 Suitable for all religions (HALAL)
Geographic
 Our main location is in Bandar Hilir, Melaka
 Our product can withstand the hot and humid weather of Malaysia
 Our product is suitable with the weather climate in Malaysia

5.2 Marketing Programme

5.2.1 Overall marketing strategies
 Focusing on target market (prospects)
Our product is suitable for customers from all groups of ages
 Event
We also cater for events like weddings, carnivals, festivals and parties


5.3 Marketing Mix

5.3.1 Product and Services
Our company provide unique products that fall into three categories; healthy,
sweet and crispy. In addition, we also provide delicious and refreshing drinks,
Apple Cooler, Fruity Lemon Soda and Chocolate Volcano. The specialty of
our product is all the food and drink in a cup. Basically, grab and go concept
based on our product that all in a cup and easily for our customer to buy and
enjoy their food.

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 RM2.90 RM4.90 RM6.90

5.3.2 Place
This strategic location plays a crucial role in marketing and promotion. This is
because they are a few target places that our company aim such as carnivals,
food festivals and tourist spot such as Pantai Klebang, A Famosa and Jonker
Walk. During weekdays we will place the food truck around the Bandar Hilir
Melaka to provide our products to student UTeM’s Kampus Bandar, UiTM
Kampus Bandar, Kolej Profesional Mara and school students. We are also
available near shopping malls like Aeon Bandaraya Melaka, The Shore Sky
Tower and Mahkota Parade during the night.

5.3.3 Price

Our price is reasonable and affordable for all categories level of age. The
range is between RM2.90 to RM6.90 based on the cup. We choose the range
of price because it is affordable, and will be able to attract the target
customers. We used penetration strategies aim to attract buyers by offering
lower prices on goods. In the long run, after sufficiently penetration of a
market, our company often wind up raising our prices to better reflect the state
of our position within the market. We also used psychology pricing.
Psychology pricing refers to techniques that marketers use to encourage
customers to respond on emotional levels rather than logical ones such as
RM4.90.

Price = Cost per unit + mark-up (40%)

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 The cost-based pricing is often used as a guide in pricing. The lowest price of
the product is determined by unit cost of the product.

5.3.4 Promotion

We market our goods using various and aggressive marketing strategies such
as viral marketing, and direct marketing. The platform that we used for our
promotion includes social media such as Facebook page, Instagram, and
website. We also make flyers to be distributed to our target customers. For
direct marketing, we provide testers and our truck also has interesting design
that promote our products like banners, sticker and eye catching design on our
cup.

Package Characteristic Price

COMBO A (Healthy) Mix Salad + Juice RM 6+ RM 6
COMBO B (Sweet) Waffle + Choco Volcano RM 6+ RM 6
COMBO C (Crispy) Chicken Pop Corn + soft RM 6+ RM 6
drink with ice cream float

6.0 FINANCIAL PLAN

6.1 FINANCIAL OVERVIEW
6.1.1 PROJECT IMPLEMENTATION COST

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 A Capital Expenditure RM RM RM
Food Truck 35,000
Machinery and Equipment 18,000
Furniture & Fixture 7,000
Renovation Cost 4,000
64,000
Sub-total
B Working Capital
Marketing 700
Production / Operation 6,500
Administrative 800
8,000
Sub-total
C Other Expenditures
Pre-operating
Business registration 1,600

Insurance 300

Road Tax 200

Sundries 100
2,200

Deposits
800
Utilities (Telephone/water/electricity)
3,000
Sub-total
75,000
Grand-total
D Add: Contingency cost (10%) 7,500
TOTAL PROJECT IMPLEMENTATION 82,500
COST

6.1.2 DEPRECIATION SCHEDULES

Depreciation Schedule (Food Truck)
Loan Amount RM35,000 Interest rate 5%
Loan period 5 years Method Straight line
Year Annual Accumulated Book Value

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 depreciation
0 0 0 35,000
1 7,000 7,000 28,000
2 7,000 14,000 21,000
3 7,000 21,000 14,000
4 7,000 28,000 7,000
5 7,000 35,000 0

Depreciation Schedule (Machinery & Equipment)

Loan Amount RM18,000 Interest rate 5%
Loan period 5 years Method Straight line
Year Annual Accumulated Book Value
depreciation
0 0 0 18,000
1 3,600 3,600 14,400
2 3,600 7,200 10,800
3 3,600 10,800 7,200
4 3,600 14,400 3,600
5 3,600 18,000 0

Depreciation Schedule (Furniture & Fixtures)

Loan Amount RM7,000 Interest rate 5%
Loan period 5 years Method Straight line
Year Annual Accumulated Book Value
depreciation
0 0 0 7,000
1 1,400 1,400 5,600
2 1,400 2,800 4,200
3 1,400 4,200 2,800
4 1,400 5,600 1,400
5 1,400 7,000 0

Depreciation Schedule (Renovation)

Loan Amount RM4,000 Interest rate 5%
Loan period 5 years Method Straight line
Year Annual Accumulated Book Value
depreciation
0 0 0 4,000

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 1 7,000 800 3,200
2 7,000 1,600 2,400
3 7,000 2,400 1,600
4 7,000 3,200 800
5 7,000 4,000 0

6.1.3 SOURCES OF FINANCE SCHEDULE

Schedule Of Finance Sources

Sources Amount (RM)

A. Equity/Own Contributions

Cash 40,000

B. External Sources

Bank Loan 40,000

C. Others 0

Total Sources Of Finance 80,000

6.1.3.1 TERM LOAN AMORTISATION SCHEDULES

Term Loan Amortization Schedule
Loan Amount RM 40,000 Interest Rate 5%
Loan Period 5 years Method Annual rest
Year Interest(RM) Principal(RM) Payment(RM) Balance (RM)

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 0 0 0 0 40000
1 2000 8000 10000 32000
2 1600 8000 9600 24000
3 1200 8000 9200 16000
4 800 8000 8800 8000
5 400 8000 8400 0

6.1.4 PRO FORMA CASH FLOW STATEMENT FOR THREE YEARS

YEAR YEAR 1(RM) YEAR 2(RM) YEAR 3(RM)
A Cash Inflow :
Equity – Cash 40,000 0 0
Term-loan 40,000 0 0

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 Cash sales 174,000 235,000 298,000
B Total Cash Inflow 254,000 235,000 298,000
C Cash Outflow:
Operation Expenditure:
Raw materials 34,000 31,500 34,300

Direct labour 22,000 24,500 21,900

Operations overheads 20,000 21,500 19,500

Marketing Expenditure:
Sales commission(5%) 8,700 11,750 12,600

Entertainment allowance 7,200 7,200 7,200

Administrative Expenditure:
32,400 64,800 86,400
Salaries & wages
1,620 3,240 4,320
EPF & SOCSO
13,000 15,500 18,200
Other administrative overheads
Loan Repayment:
8,000 8,000 8,000
Principal
2,000 1,600 1,200
Interest
Capital Expenditure:
35,000 0 0
Food Truck
18,000 0 0
Machinery & Equipment
7,000 0 0
Furniture & Fixtures
4,000 0 0
Renovation
2,200 1,800 1,700
Pre-operational Expenditure
800 0 0
Deposits
D Total Cash Outflow 215,920 191,390 215,320
E Cash Surplus/(Deficit) 38,080 43,610 82,680
F Beginning Cash Balance 0 38,080 81,690
G Ending Cash Balance 38,080 81,690 164,370
6.1.5 PRO FORMA INCOME STATEMENT FOR THREE YEARS
RM
YEAR 1 YEAR 2 YEAR 3
Sales 174,000 235,000 298,000
Less: Operating Expenses

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 Administrative Expenditure
Salaries & wages 32,400 64,800 86,400
EPF & SOSCO 1,620 3,240 4,320
Other administrative overheads 13,000 15,500 18,200

Marketing Expenditure
Sales commission 8,700 11,750 12,600
Entertainment allowance 7,200 7,200 7,200

Operation Expenditure
Raw materials 34,000 31,500 34,300
Direct labour 22,000 24,500 21,900
Operation overheads 20,000 21,500 19,500

Other Expenditure
Miscellaneous 2,200 1,800 1,750
Interest of term loan 2,000 1,600 1,200
Depreciation of Assets 12,800 12,800 12,800

Total Expenditure 155,920 196,190 220,170

Net Profit before tax 18,080 38,810 77,830
Tax - - -
Net profit after tax - - -
Accumulated net profit/loss 18,080 38,810 77,830

6.1.6 PRO FORMA BALANCE SHEET FOR THREE YEARS

YEAR 1(RM) YEAR 2(RM) YEAR 3(RM)

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FIXED ASSETS
Food Truck 28,000 21,000 14,000
Machinery & Equipment 14,400 10,800 7,200
Furniture & Fixtures 5,600 4,200 2,800
Renovation 3,200 2,400 1,600

CURRENT ASSETS
Cash 38,080 81,690 164,370
OTHER ASSETS
Deposits 800 0 0
TOTAL ASSETS 90,080 120,090 189,970
EQUITY
Capital 40,000 40,000 40,000
Accumulated Profit 18,080 38,810 77,830
CURRENT LIABILITIES 0 17,280 56,140
LONG-TERM LIABILITIES
Term loan 32,000 24,000 16,000

TOTAL EQUITY AND 90,080 120,090 189,970

LIABILITIES

BREAKDOWN OF SALES
NET SALES BY 2014 (RM) % 2015 (RM) % 2016 (RM) %
CATEGORY

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FOOD & 174,000 100 235,000 100 298,000 100
BEVERAGE

WORKING EXPENDITURES
Working Capital

Salaries 2,700

Raw Material 2,833

Utilities 800

SUBTOTAL 6,333

BREAK-EVEN ANALYSIS

Our estimation of monthly’s earning is about RM14,500.00. So when we deduct the monthly
expenditure. We would get the net profit of RM8,167. In this mean, we will reach the Break
Even Point at the mid of 12th month. The calculation will be shown as below:

Monthly’s earnings : RM 14,500.00

Monthly’s expenditure : RM 6,333.00

Net profit gained = Monthly’s earning- monthly’s expenditure

= RM 14,500.00 –RM6,333.00

= RM 8,167

To reach Break Even Point, the Total Cost must equal to Total Revenue.

Total Cost used = RM 82,500

Total Revenue = RM 8,167

Break Even Point, x: 8,167x = 82,500

X= 82,500/8,167

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 =10.10 months

120000
BR EA K EVEN A NA LYSIS
total cost total revenue
100000 98004

80000 82500 82500 82500 82500 82500

81670 82500

65336
60000
49002
40000
32668
20000
16334

0
2month 4month 6month 8month 10month 12month

Based on the overall graph, we can conclude that we will reach the Break Even Point at 10 th
month. The profit that we gain after we reaches the break even point is called Net Profit. The
black dot is the Break Even Point.

Assuming that company forecast :

(i) Annual sales revenue : RM174000

(ii) Total variable costs : RM34000
(iii) Total fixed costs : RM33500
(iv) Breakeven point (RM) : Total Fixed Cost/Contribution Margin Ratio
: RM33500/0.8046 = RM41635.60
(v) Contribution Margin Ratio : (RM174000-RM34000)/RM174000
: 0.8046
(vi) Breakeven point (unit) : RM41635.60/RM5
: 8327 units

6.2 FINANCIAL QS TO CONSIDER

Based on our projected revenues, profit will increase for the next three years . Our Food
Truck business tends to improve our quality services and fulfilling our customers’ need. We

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assume to get our profit by targeting some students and workers. Our company has also taken
a loan from bank which is approximately RM40, 000. At first, our profits increase seems to
be not obvious. Our company have more focus on marketing strategies in order to increase
our profit through giving better services. Investors can expect high returns by investing in our
company because Small and Medium Enterprise plays an important role in the economy.

7.0 CONCLUSION
As a conclusion, G&G Enterprise’s food truck business is believed to be able to grow
profitably with a much higher level of performance from time to time. The R&D in terms
of the food truck or the menu that we serve is crucial in making sure that the prospects are

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interested in the products and services that we offer. We aim to provide the best on-the-go
food products to our prospects to build a strong broad customer base.
More aggressive actions need to be taken in the future to help sustain the business in the
market. Collaboration with the government officials, major event planners and expanding
the market itself would help the company to generate more revenue thus making more
profit while selling good values to the customers.
Internally, a good employer-employee relationship is also vital for smooth management
of the company. All personnel should be able to know what their responsibilities are and
always give their best for the company to achieve great success.

REFERENCES
 3 Must Food Truck Revenue Sources
http://foodtruckr.com/2016/06/3-must-food-truck-revenue-sources/

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 Food Truck Business Plan
http://www.profitableventure.com/food-truck-business-plan/

 The Market Analysis Section Of Your Food Truck Business Plan

http://www.dummies.com/business/start-a-business/the-market-analysis-section-
of-your-food-trucks-business-plan/

 The Three Purposes Of Marketing

http://www.evancarmichael.com/library/ernst-marsig/The-Three-Purposes-Of-
Marketing.html

 Who Is Your Food Truck Customer?

http://www.truckfoodfinds.com/food-truck-customer.html

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