PILLOW❤ BLUEPRINT REPORT

Faculty : Faculty of Applied Science

Program : Bachelor of Science (Hons.) Biology
Program Code : AS201
Course : Technology Entrepreneurship
Course Code : ENT600
Group Members : 1) Nurain Syafiqah binti Muzmar (2021117379)

2) Norsuhada binti Abdul Majid (2021118125)

3) Ameera Syahfiqah binti Rosmizi (2021112135)

4) Muhammad Harish bin Mohd Hapiz (2021102457)

5) Fahda Nurr binti Rosli (2021156097)

Submitted to
DR. ROSMAH NIZAM
Submission Date
15 July 2022
 TABLE OF CONTENTS

TABLE OF CONTENTS 2
1.0 EXECUTIVE SUMMARY 3
2.0 PRODUCT OR SERVICE DESCRIPTION 4
3.0 TECHNOLOGY DESCRIPTION 7
4.0 MARKET ANALYSIS AND STRATEGIES 9
5.0 MANAGEMENT TEAM 18
6.0 FINANCIAL ESTIMATES 32
7.0 PROJECT MILESTONES 40
8.0 CONCLUSIONS 42
9.0 APPENDICES 43
 1.0 EXECUTIVE SUMMARY

In modern lifestyles nowadays, people take chances in trying new things that will
benefit them. This is because they want to explore the new technologies that have been
introduced in the market. PILLOW❤ SDN.BHD. is a company that distributes a product to
consumers with useful and quality and we introduce our product named as PillowSync.
PillowSync is a product that is inspired by pregnancy pillows style but it comes with new
variations and functions. There are new features that were added to the product as an
improvement from the basic pillow. This product distributed focused on people who in need
such as pregnant women, athlete, eldery person, injured people and other person that having
uncomfortable of body condition. PillowSync will ease people and bring back the happy
moments in their daily life.
This new technology based inventions are intended to help and also easy to carry due
to its sleek and organised function. The flexibility of this product not only can be used for a
single time, it can be used for multiple times with numerous functions in long term usage.
The three in one design which acts as massager, the heater and also a comfort pillow help
customers to save their budget and time by using this PillowSync.
Target market is the main element that needs to be determined before launching the
product and introducing it to consumers. Target market of PillowSync comprises people that
live in Pahang, Malaysia. The targeted customer for this product consists of workers, women,
injured people and athletes. The product was introduced to consumers by market testing to
give consumers understanding about the product and to gain their trust and acceptance as
users of the product. Target market is important because we need to know the aspect that will
increase the rate of sales of the product. Consumers will be more interested as the product
comes with new features that differ from the original pillow.
PILLOW❤ company is consist of the Chief Executive Officer which is Muhd Harish
bin Mohd Hapiz, followed by administration manager, Norsuhada binti Abdul Majid, then
followed by Fahda Nurr binti Rosli as financial manager, Ameera Syahfiqah as marketing
manager and lastly Nurain Syafiqah as operational manager. Each of the person in company
carried out their own function and specific task to ensure the company can achieve their
target by fulfilling the vision and mission properly.
 2.0 PRODUCT OR SERVICE DESCRIPTION

2.1. Describe in some detail the product or service to be produced/sold.

PillowSync is a combination of 3 features in one product which is the full body pillow,
heat pad and massage pad. This product is built for the needs of people with difficulties of
sleeping and suffering from pain within the pelvis and spine area. This product is also
portable where we can carry it anywhere and it came with a unique feature than the other
product.

2.2 Discuss the application of the product or service and describe the primary end use
as well any significant secondary applications.
The Pillowsync are a pillow that are designed specially with advanced features
technologies. It can be used exclusively to help in reducing the muscle related pain especially
during the pregnancy which includes back pain and also pelvic pain due to hormonal changes
and baby weight, sport injury which need the heat therapy and also for daily health especially
in maintaining good blood circulation and offering comforts mainly for cold season.
The specialty of this product is the new design which is in U and G pillow shape,
combination of a pillow, massager and heat pad. Good heating fabric by using fibre polyester
and premium crystal velvet material, sold in various sizes and prices, also the product is
multipurpose, unique and regardless of gender different from traditional and commercialised
heating pads. It is easier to use, anytime and anywhere.

2.3. Emphasise any unique features of the product or service and how these will create
or add significant value; also, highlight any differences between what is currently on the
market and what you will offer that will account for your market penetration.
Pillowsync came with additional accessories. Velcro tape is a sticky back fastener which
delivers strong holding power. It can be simply peel and stick for application. With Velcro
tech, we are able to complement new features to the pillow by attaching them to the velcro
zone on the pillow. These features include massage pads.
The heating source can change from cord and cordless. The remote control has
temperature control from 40 degree Celsius (lowest temperature) to 70 degree Celsius
(highest temperature). The PillowSync heating pillow will turn off automatically within 1
hour of usage for safety purposes. So people don’t have to worry if they forget to turn off the
heating pad. This product has special features that can attract people to buy it compared to the
other product. This surely will incline the market demand.
2.4. Define the present state of development of the product or service and how much
time and money will be required to fully develop, test, and introduce the product or
service. Provide a summary of the functional specifications and photographs, if
available, of the product.
Our products Pillowsync conducts a marketing test to find out that idea for improvement.
Due to time, this Product takes a few months, which is around 4 months to fully develop and
test the product and product improvements.The additional technologies added to the product
requires a lot of testing to ensure that the technology can be used in the long run. As for the
cost, it depends on the market price, the type material to be used and the other additional
features maintenance.

Development and description of product

I. Planning and Research

There was research done by the group members in gaining information about the pregnancy
pillow. We identify the function of the pillow and how the pillow works on the body so that
we can understand better about the product. Besides that, we also search for any information
and opinion from suitable sources so that the product can be produced perfectly. We
discovered how the pillow can bring benefits towards people and we also found out the way
to distribute a quality product that functions well.

II. Product Design

Pillowsync is designed based on problems, customers’ habits, needs and demand. This
product design consists of the process of imaging, creating and liberating products. The
pillow comes in 2 varieties such as U-shape and G-shape. Depending on customer needs, this
pillow is suitable for all types of people that prefer them.
III. Testing
Few tests are conducted to make functions accordingly and avoid unnecessary risks and
expense. In this process, it allows the manufacturer to track the flow and ensure that the
product works effectively when it enters the market to be used by consumers.
IV. Prototype
To create this product, a long period of time is required to design the prototype or obtain the
materials required to guarantee the product fulfils the functionality and customers desires.

BUILD PROTOTYPE (2D & 3D)

V. Marketing
When the product is ready, it will be launched and marketed in representative cities such as
Kuala Lumpur. This product was on the market for over four months, and the product
received good feedback from the customers.

2.5. Describe any patents or other proprietary features of the product or

service. Design Patent
Pillowsync came with additional accessories. Because of the unique features, a design patent
was applied to these features. These visual elements are the heating pad and massage pad.
With these patents, competitors do not have potential to copy the product without legal
consequences.
Another patent applied was utility patent that covers the creation of a new or improved
product, process, or machine. It is known as a “patent for invention,” to prevent other
individuals or companies from making, using, or selling Pillowsync without consent.

2.6. Discuss any opportunities for the expansion of the product line or the development
of related product or service.
Opportunity to expand our product range by introducing our products pillosync to the
society. As we know, the importance of product development has the potential to keep the
economy afloat. Based on this, we made significant improvements to our products.
Pillowsync also plans to provide innovation and expansion of our current products. The
importance of gaining opportunities for product line development or development related
products, we Pillosync will come up with excellent products to ensure survival and design
the best strategies for growth to gain market demand.
 3.0 TECHNOLOGY DESCRIPTION

Technology is currently a key component in the creation and improvement of the

product. Every technological advancement aims to help living things and hence deepen the
meaning of technology. As a budding entrepreneur, we should observe how the creative
visionary in technology is creating new products and methods. We are aware that in order to
survive in this cutthroat market, we must constantly be on the lookout for innovative ways to
inspire more people to adopt our technology.

In our stance of technology, we implemented modular design with customised

accessories to enhance the functionality of an already comforting sleeping pillow. With the
help of loop and hook fasteners, we can easily apply any additional feature to a product and
open up creativity opportunities. This design contributes to various benefits toward
production workload as it can reduce the project cost exponentially. Shorter production
duration and effective material utilisation all contribute to lower labour and operational costs.
By working on smaller independent modules, manufacturing time can be cut and cheap to
produce. They also can easily be customised to specific user needs and be modified or
replaced according to their preferences.

However as our product's main goal is to provide full support for our user to rest,
the pillow needs to be devised as perfect as possible. Our research team has been working on
this product alongside individuals of expertise that can provide guidance on creating a full
body pillow that can fit all types of consumer. As this product is inspired by maternity pillow,
we want to provide the benefit the product has to cater to all individuals and not exclusive to
pregnant mothers only. Our research has concluded that the shape of the pillow and their
material bestow a massive impact on the effectiveness of the product. Therefore we choose
G- shape and U-shape as our mainline design plus velvet cover with fibre polyester filling as
the base. This will bring out the best from our product with guaranteed quality.

As we mentioned before, we hold up on the creativity possibility this product can

provide. We envisioned our product to not only serve for good night sleep but also can be
used in overall daily life. With the modular design, we are thinking of transforming the
product to a variety of other functions like floor chair and pillow table. Another idea is to
expand our modular accessories like heat and massage pad with a small speaker attachment
that can play music while using the product.
 4.0 MARKET ANALYSIS AND STRATEGIES

MARKET RESEARCH AND ANALYSIS

4.1 CUSTOMERS

Our product which is named as Pillowsync can be marketable for personnel use that
comes with the combination of soft pillow, a massager, and a heating pad. Since our product
is light and medium in size, it will be easier to carry around and most of the customers will
use this product anywhere when they are going to sleep and rest.

The major purchasers are the housewife, students, and the office worker. This product
is efficient to be used indoors and for the pregnant woman which can help support the belly
and provide a better position when resting. In Malaysia, there are mostly more than 50% of
people who do not have a good sleep pattern. Since our product is made with a massager and
heating pad, it will help the people who have body aches and period pain. From this, we can
see that this product is efficient to be sold and used by any people from any age.

This product is easily reached and receptive because we sell this product online and
wholesale through the manufacturer’s representative. For those customers who want to get
this product, they can order through our official website, or they can get it directly from our
company. We were focusing on launching our PillowSync in all retail in Kuantan.
4.2 MARKET SIZE AND TRENDS

Price Calculation

No Components Price (RM)

1 Crystal Velvet Cover RM 63

2 Fibre Polyester Fillings RM 13

3 Hook and loop fastener RM 3

4 Massage Pad RM 41

5 Heat Pad RM 30

TOTAL = RM 150

The percentage of mark-up cost is 20%

Selling price = Mark-up + Cost per prototype

= (20% x RM 150) + RM 150

= RM 180 per unit.

The 3 years of the current total market

Number of total population in Pahang = 1,591,295

Middle class people (M40 category) in Pahang = 40% X 1,591,295 = 636,518

From the total population, 1% is our potential customers.

= 1% x 636 518

= 6365 customers.

Average market size for the pregnancy pillow industry.

= (“Pillowsync”) + (Top two highest selling pregnancy pillow in Malaysia)

= RM (180 + 70 + 80) / 3

= RM 110

Total market size = RM 110 x 6365

= RM 700 150

The demand market for Pillowsync within three years will increase. This is because
many people nowadays like new innovations that can reduce their cost to do something. The
minimum price that will be spent for our product is only RM 110, so we can predict about
each 1% of customers living in Pahang will attract with our product. So, the total market size
for our product is about RM 700 150. This product also has potential profitability because it
is a new innovation produced by us. As everybody knows, people nowadays love to use new
things in order to follow the technology trend.

For our product which is Pillowsync, we already target the potential annual growth in
order to sell this product to customers. Below is the estimation of total market size for second
and third years:
 YEAR 2022 2023 2024

MARKET SIZE (%) 1 1.5 2

TARGET MARKET 6365 9547 12,730

TOTAL MARKET 700 150 1 050 170 1 400 300

SIZE (RM)

Total market size in 3 years = RM700 150 + RM 1 050 170 + RM 1 400 300

= RM 3 150 620

After this stage shows its improvement, we want to expand the market size to the big
organisation to use this product. This product is only being introduced inside our country,
then if we get good response from customers, we want to expand it to a country inside Asia.
Then we can continue to introduce it worldwide.

Major factors affecting the market growth

The major factors that affect market growth for “Pillowsync” generally come from the
rise in rate of pregnancy pillow which cause the strong demand in pregnancy pillow.
Nowadays, the pregnancy pillow has a good way that can prevent the muscle pain and getting
a better sleep. But, with having a massage pad and heat pad, pillowsync would help to reduce
the body aches and giving the comfortable sleep positions especially for pregnancy women.
Moreover, our product also more eco-friendly compared to others since we attached the
pregnancy pillow with a massage pad and heat pad. So, the customers can save their money
than buying another massage machine.

Besides, the opportunity that we use to introduce this product is capability push which
is technology driven. Technology driven means we introduce new innovation or invention to
customers that love new technology. So, we can say that this product will be a success if we
introduce it to the customer.
4.3 COMPARISON BETWEEN PILLOWSYNC AND OTHER COMPETITORS

PRODUCT PILLOWSYNC PREMIUM U-SHAPE

PREGNANCY PREGNANCY
PILLOW PILLOW

PICTURE

PRICE RM 110 RM 70 RM 80

PERFORMA Two exquisite U-shaped in design U-shaped in design

NCE design which is the can be used. can be used.
U-shape and G-
shape can be used.
 STRENGTHS - A - Material - Material made
combination made from from cotton
of 3 features cotton and - Have a zipper
in one fibre. - Can be wash
product - Various - Many colours
which is the design
full body - Soft
pillow, heat
pad and
massage pad.
- Various
design
- Cover is
made from
crystal velvet
material.
- Can be
washed
easily.

WEAKNESS - Can be used - Cannot be - A head curve

indoor washed can make
easily. people who use
have headache.

Advantages and disadvantages of Pillowsync

Most of the products have their own advantages and disadvantages based on several
significant aspects that will affect the decision of the customers to choose which company
provides the best products or services.

Companies from outside of Malaysia might have advantages on their product pricing
since the price is one of the most important aspects that will be considered by the customer to
purchase products. Customers will search for a company that offers lower price but with the
same quality.

As for the local competitions, we do not say that their products have the advantages in
pricing if compared to our product. But, since our product is an innovation of a pregnancy
pillow that can give a lot of benefits towards the customers, we can say that our pillowsync
has more advantages when compared to other local companies. We depend on the capability
push or the technology driven opportunity concept to make the customers choose our product.

4.4 Estimated Market Share and Sales

a)

Product/service Market Share and Sales

Year

2022 2023 2024

Market share (%) 10% 12% 15%

Total sales in units 12 000 13 200 15 180

Total sales in RM RM 2 160 000 RM 2 376 000 RM 2 732 400

FIRST YEAR:
Total market share = 10% of total market size
= 10% of RM 700 150 = RM 70 015
4.5 Marketing Strategy
a. Overall marketing strategy
The groups that we are targeting are mainly pregnant women but we also target people who
are having uncomfortable conditions such as having pains, aches and injuries. We need to
create a product that attracts customers and follows the needs of customers. We are applying
a concept of trial-repeat-purchase in order to get the ideas about behaviour of customers and
what they prefer. If the characters of the product can be accepted by consumers or customers,
then it brings a rise of sales and profit.
b. Pricing
The pricing strategy that is used is value-based pricing. Our PillowSync is not just a simple
and basic maternity pillow as it has few features that have been added to the pillow. Thus, the
price that was set up is suitable for every component that is being used. Other than that, we
also use a competitive pricing strategy where we set the price of our product based on the
type of material used. We set an affordable price for the product which is the price not too
high and too low so it just fits the quality of the pillow as we also compete with other
companies. Thus, we want to show that our product is more valuable to be chosen.
c. Sales tactics
The method that we used to make sales and to distribute the product and service such as using
online platforms (social media), online stores and walk-in stores. We sell the product
physically in the stores and also from the website. Other than that, online advertisements
were prepared in order to reach more consumers who will give benefits to our sales. We are
hiring a product designer and also marketing expert in order to enhance the quality of the
product. The source of social media is used to share important information about the product
to potential customers.
d. Service and warranty policy
Our company develops the policy of service and warranty. We provide customer service that
is available both on online and offline platforms. The customer service will always be ready
to respond to our customers. Customers can reach the customer service on an online website
or physically meet at stores. By this way, customers are able to know more information or
want to ask any questionnaire. The product will be covered by 1 year of warranty so
customers get time to try our product then give compliments or complaints about the product
to the company. If there is any problem, customers can deal directly with the customer
service. Our company also provides shipping and maintenance.
e. Advertising and promotion
We are using advertisements through social media and online websites as this is the platform
that is mostly being used by people nowadays. Every time people look at the screen they are
able to see the advertisement made by our company. By this way, customers can reach and
look for the product. For offline advertisement, we will present banners and share brochures
in many places in order to grab attention from people. Our company gives promotions to
customers such as discounts or less in price if they become regulated customers or being
members.
f. Distribution
The product is distributed from the factory which then is passed to the retailer who is
responsible to sell the product. So customers will purchase our product directly from our
legal retailer.
 5.0 MANAGEMENT TEAM

5. MANAGEMENT TEAM

5.1 ORGANISATION TEAM

5.1.1 KEY MANAGEMENT ROLES IN COMPANY

KEY MANAGEMENT ROLES NAME

CHIEF EXECUTIVE OFFICER MUHAMMAD HARISH BIN MOHD

HAPIZ

ADMINISTRATIVE MANAGER NORSUHADA BINTI ABDUL MAJID

FINANCIAL MANAGER FAHDA NURR BINTI ROSLI

MARKETING MANAGER AMEERA SYAHFIQAH BINTI

ROSMIZI

OPERATION MANAGER NURAIN SYAFIQAH BINTI MUZMAR

5.2 KEY MANAGEMENT PERSONNEL

5.2.1 Career highlight

NAME AND POSITION CAREER HIGHLIGHT

MUHAMMAD HARISH BIN MOHD Qualifications:

HAPIZ
· Degree in Biology,
(CHIEF EXECUTIVE OFFICER) University Technology MARA.

· Master Degree in Business

Management, University Technology
MARA.

Skills:

· Passionate and very opinionated

towards success.

· Experience in handling
employees for a company.

· Determine and succeed in

bringing the company to an
international level.

Experience:

· Former researcher at Faculty

of Applied Science.

· Former research manager of

Ministry if Science Technology
and Innovation
NORSUHADA BINTI ABDUL MAJID Qualifications:

(ADMINISTRATIVE MANAGER) · Degree in Biology,

University Technology MARA.

· Master Degree Business

Administration, University Technology
MARA.

Skills:

· Skillful in handling company

business trip and courses

· Multitasking and good

at communication

Experience:

· Often joining company audit

and administration courses

· Receive a few certificates of

administration from faculty of
Business Management
FAHDA NURR BINTI ROSLI Qualifications:

(FINANCIAL MANAGER) · Degree in Biology,

University Technology MARA.

· Master Degree in Business

Administration (Finance) University
Technology MARA UiTM.

Experience:

· Former beauty consultant of Mary

Kay

· CEO and Financial manager

of Abe Restaurant

Skills:

· Good at programming for financial

· Strong sense of details and strong

working relationship.
AMEERA SYAHFIQAH BINTI ROSMIZI Qualifications:

(MARKETING MANAGER) · Degree in Biology,

University Technology MARA.

· Master Degree in Business

Economics, University Technology
MARA.

Experience:

· Involve in marketing and

distribution of skincare
products, Wipro Unza Malaysia.

Skills:

· Good content management

and social media expertise.

· Talented at using
recent applications and
technology
NURAIN SYAFIQAH BINTI MUZMAR Qualifications:

(OPERATION MANAGER) · Degree in Biology, University

Technology MARA, Pahang,
Malaysia.

· Master in Human Resource

Management, University Technology
MARA

Experience:

· Former Ikea Operation Manager

· Active as Event Project Manager

at Event Tech

Skills:

· Able to develop and analyse

new products.

· Able to carry out events

according to plan and work closely to
other department.
5.2.2 Duties and responsibilities of management team

NAME AND POSITION DUTIES AND RESPONSIBILITIES

MUHAMMAD HARISH BIN MUHD · Leading the development and

HAPIZ execution of a company in long
term strategies by standing the goals
(CHIEF EXECUTIVE OFFICER)
to increase the shareholder value.

· Implement the company long and

short term according to a strategic
plan also the company's vision and
mission.

· Able to evaluates the work of

other executive leaders within the
company

· Assess the risk and minimise

the risk of the company

· Set strategic goals and make

sure the task is appropriate and do-
able.
NORSUHADA BINTI ABDUL MAJID · Supervised the daily
operation within the department
(ADMINISTRATIVE MANAGER)
and staff

· Evaluates employee through

training and take corrective
measurement for improvement in future

· Monitors all the office necessary

supplies and maintained the equipment
in a good condition and work properly

· Set the budget and monitor the

spending and expensed of the company

· Collect the data, organise and store

the information in a good filling
system.

FAHDA NURR BINTI ROSLI · Collect and interpret also review

financial statement and information of
(FINANCIAL MANAGER)
the company

· Predict the company’s future

financial trend and development

· Provide the right business decision

that impact the management and
stakeholders

· Produce the long term business plan

and manage the budget to minimise the
financial risk

· Analyse the financial report

that related to accounts
AMEERA SYAHFIQAH BINTI ROSMIZI · Analyse the market trend
and competitors
(MARKETING MANAGER)
· Promote a good business marketing
ad campaign of the company marketing

· Coordinates the marketing budget

· Prepare to present of the

product marketing

· Keep on with the marketing

trend and industry related events

NURAIN SYAFIQAH BINTI MUZMAR · Restrict the important policy

and planning the organisation
(OPERATION MANAGER)
· Involve with the HR
recruiting session

· Promotes good company culture

and encourage high moral value of
employee performance

· Involve with auditing, planning

and budgeting

· Identify the problems and

opportunities for the company and able
to work with the board of directors to
determine the long and short term
goals for the company
5.3 MANAGEMENT COMPENSATION AND OWNERSHIP

NAME AND MONTHLY SHARE OF AMOUNT OF

POSITION SALARY (RM) OWNERSHIP (%) EQUITY
INVESTED (RM)

MUHAMMAD 8,000 25% 25,000

HARISH BIN MOHD
HAPIZ

(CHIEF EXECUTIVE
OFFICER)

NORSUHADA BINTI 7,500 23% 23,000

ABDUL MAJID

(ADMINISTRATIVE
MANAGER)

FAHDA NURR 7,500 23% 23,000

BINTI ROSLI

(FINANCIAL
MANAGER)

AMEERA 6,000 15% 15,000

SYAHFIQAH BINTI
ROSMIZI

(MARKETING
MANAGER)
NURAIN SYAFIQAH 6,000 14% 14,000
BINTI MUZMAR

(OPERATION
MANAGER)

5.4 SUPPORTING PROFESSIONAL ADVISORS AND SERVICES

NAME OF PROFESSIONAL ADVISOR SERVICES PROVIDED
- Examine all aspects of
ABA MALAYSIA
company’s business
- Provide a full summary of
- the business’s health
- Understand the actions needed to
be taken by the
- business owners

COMPANY SECRETARY: COMPANY REGISTRATION

Company’s name:
Faridah & Co PILLOW❤
Registration number:
Task: 202201000007

To ensure the company to fit in

standard legal and financial practice
and incharge of overseeing the
corporate governance standards.

AUDITOR FINANCIAL AUDIT

Faridah & Co Faridah &

Task: Co Task:

In order to prevent frauds and provide To track the company cash flow from
financial opinion statement by true the early to end to verified that
and fair view of accounts. company in the proper lane accounted
to.
 ADVERTISEMENT - DEVELOP WEBSITE

Online Company Website:

- Instagram (PILLOW❤_Malaysia) https://PILLOW_❤Malaysia.my/

-Facebook (PILLOW❤Malaysia)

- Shopee (PILLOW❤Malaysia)

Offline - brochure/ pamphlet

LOAN

Bank Islam Start Up Financing

Program(SME Programme)

RM100,000

The guarantee fee is payable at 1.0% per

annum (Guarantee Fee)

Syarikat Jaminan Pembiayaan Perniagaan

(SJPP) (Guarantee Coverage)
 6.0 FINANCIAL ESTIMATES

Good financial planning is one of the essential things that any business start up needs
to have in order to survive for a long period of time. This is to ensure that the business is on
track and will not stray away from the goal which is to be profitable. Financial planning
section will think through the financial part such as one time start-up cost, working capital,
and operating costs.

6.1 Start-Up Costs

Start-up costs are costs that are incurred in conjunction with one-time activities that
are needed in order for the company to begin their venture. For our company, the start-up
costs include items such as office and factory, office renovations and furniture,
manufacturing equipment.

A. START UP COSTS RM

Capital Expenditure: Administrative

Land & Building 90,000.00

Business fixtures and equipment 6,000.00

Office renovation 15,000.00

Moto vehicles 100,000.00

Capital Expenditure: Operations

Machinery 30,000.00

Factory Renovation 25,000.00

One-Time Start-up Expenditure

Installation of fixtures/ equipment 2,000.00

Starting inventory cost 2,000.00

 Office supplies 1,000.00

Legal and professional fees 1,000.00

Advertising for opening 2,000.00

Other Pre-Operations Expenditure

Deposit (Rent, Utilities) 3,000.00

Business Registration & License 1,000.00

Insurance & Road Tax for Motor Vehicle 1,000.00
Other Expenditure -
Start-Up Costs 279,000.00

6.2 Working capital

Working capital is the amount of initial expenditure required to finance the daily
operation until the business gets its first sale. The amount of working capital should cater for
as long as the company needs to be operational to generate enough sales to cover its
expenditures.

WORKING CAPITAL (MONTHLY) RM FIXED VARIABLE

Marketing

Delivery expenses 2,000 - Cash

Advertising 2,000 - Cash

Salesman commission 1,000 - Cash

Administrative

Salaries, Wages, EPF & SOCSO 29,000 - Cash

Rent 3,000 - Cash

Utilities 1,000 - Cash

Insurance 1,500 - Cash

Office maintenance 1,000 - Cash

Office supplies 1,500 - Cash

Operations

Salaries, Wages, EPF & SOCSO 24,000 - Cash

Carriage inwards 5,000 - Cash

Purchase of Raw Materials/Goods: Main 30,000 - Cash

Materials/Goods

Purchase of Raw Materials/Goods: 15,000 - Cash

Materials/Goods 2

Purchase of Raw Materials/Goods: 10,000 - Cash

Materials/Goods 3

Other expenditure

Business licence & Registration 1,000 - Cash

Deposit (rent, utilities, etc.) 3,000 - Cash

Insurance & Road Tax 1,000 - Cash

Total working capital - - -

Total working capital required 1 months

Working capital + 5 %
Contingencies
6.3 Start-up Capital and Financing

Estimated start-up capital is the total amount of one time start-up costs and working
capital needed to start the project.

ESTIMATED STARTUP CAPITAL

FINANCING

Equity Share and Venture Capital RM 169 350

Loan RM 100 000
Annual Interest Rate 3%

Loan Duration (years) 10

6.4 Cash Flow Statement

A cash flow pro-forma statement refers to the projected statement of cash inflow and
outflow throughout the planned period. Under normal circumstances, the pro forma cash flow
statement is prepared between three to five consecutive years.
 2022 202 2024 202 2026
MONTH 3 5

'
CASH INFLOW
269,350 0 0
Capital {Cash)

Loan 100,000 0 0
Cash Sales 2,160,000 2,376,000 2,732,400 3,278,880 4,098,600
Collection of Accounts Receivable 0 0 0 0 0

TOTAL CASH RECEIPT 2,529,350 2,376,000 2,732,400 3,278,880 4,098,600

CASH OUTFLOW

Pre-operating & Incorporation Expenditure 11,500

Sales & Marketing Expenditure 60,000 60,000 60,000 60,000 60,000

General & Administrative Expenditure 444,000 444,000 444,000 444,000 444,000

Operations & Technical Expenditure 1,350,000 1,370,040 1,390,481 1,416,543 1,443,256

Other Expenditure 5,000 5,000 5,000 5,000 5,000

Purchase of Fixed Assets 176,000 - - - -

Hire-Purchase Repayment:

Principal 0 - - - -
Interest 0 - - - -

Loan Repayment:

Principal 8,723 8,985 9,254 9,532 9,818

Interest 3,000 2,738 2,469 2,191 1,905

Tax Payable 0 0 0 0 0

TOTAL CASH OUTFLOW 2,058,223 1,890,763 1,911,204 1,937,266 1,963,979

CASH SURPLUS (DEFICIT) 471,127 485,237 821,196 1,341,614 2,134,621
BEGINNING CASH BALANCE 0 471,127 956,364 1,777,560 3,119,174
ENDING CASH BALANCE 471,127 956,364 1,777,560 3,119,174 5,253,795
6.5 INCOME STATEMENT
 Cash flow statement explained about the projected numbers of cash flow and outflow
throughout the period of running the business. The statement periodis depend on the period of
the time project undertaken. Cash flow statements have cash inflows, cash outflows, cash
deficits and also cash position.
The figure of the first year of operation which in 2022 and projected to gain profit
RM1,361,000. For the next year for the next 5 years of operation was estimated around
RM1,454,256.

6.6 BALANCE SHEET

Next step in developing the financial plan is to prepare the pro forma income
statement which shows the expected profit or loss, showing the specific points in terms of
assets owned and financed for the planned period, which takes time around three to five
years. The pro forma income statement consists of production cost, gross profit and net
profits.
The costs of the good manufacturing or known as production costs refers to the total
production cost involved in producing finished goods including all cost, direct materials,
direct labour and manufacturing overhead and also differential value between the beginning
and ending balances during the work-in-progress. The gross profit is from the gross margin
realised after deducting the cost of goods from sales that represent the amount of profit before
deducting other operating expenditure. The net profit is defined as the differences between
gross profit and operating expenses for the planned period.
 2022 2023 2024 2025 2026
ASSETS
,
Non-Current Assets (Book Value)
Land & Building 100,000 100,000 100,000 100,000 100,000
other Fixed 152,300 128,600 104,900 81,200 57,500
Assets . . . . .
other Non-Current Assets 3,000 3,000 3,000 3,000 3,000
Deposit 255,300 231,600 207,900 184,200 160,500
,
Current Assets
1nventory of Raw Materials
Inventory of Finished Goods & WorK-in-Progress
Accounts Receivable 471,127 956,364 1,777,560 3,119,174 5,253,795
Cash Balance
other Current Assets 471,127 956,364 1,777,560 3,119,174 5,253,795

726,427 1,187,964 1,985,460 3,303,374 5,414,295

TOTAL ASSETS
,
369,350 369,350 369,350 369,350 369,350
Net Worth (Equity)
265,800 736,322 1,543,072 2,870,518 4,991,257
AccumulatedFund 635,150 1,105,672 1,912,422 3,239,868 5,360,607
AceumulatedIncom
,
e
82,292 73,038 63,506 53,688 43,576

Long-Term Liabilities 82,292 73,038 63,506 53,688 43,576

Loan Balanee
,
Hire-PurehaseBalance
8,985 9,254 9,532 9,818 10,112
Current Liabilities
Aceounts Payable
Loan Due Within Current Year 8,985 9,254 9,532 9,818 10,112
Hire-Purchase Due Within Current Year
other Current Liabilifies 726,427 1,187,964 1,985,460 3,303,374 5,414,295

TOTAL EQUITY & LIABILITIES

 7.0 PROJECT MILESTONES

Table 7.1 Project Milestones

ACTIVITIES DEADLINES DESCRIPTION

Project Initiation 11 JUL - 24 JUL Develop the idea about the

2022 product.
Product Analysis 25 JUL - 22 AUG Analyse the product in the
2022 market.
Design and Technology 23 AUG - 3 SEP Design and Technology
Development of 2022 Development of Product.
Product
Market Analysis and 4 SEP - 7 SEP Research about the market and
Strategies 2022 potential customers. Estimate
price and market strategies
that to use.
Management Team 8 SEP - 11 SEP Management Team
Organisation 2022 Organisation
Analysis of Financial 12 SEP - 14 SEP Prepare the estimation of the
2022 cost of material that will be
used for the product.
Signing of Distributors 15 SEP - 17 SEP Find a vendor or dealer with a
and Dealers 2022 good background profile and
also provide low cost services
while waiting for proposal
approval.
Ordering of Material in 18 SEP - 23 SEP Buy tools and materials that
Production Quantities 2022 and related components for the
product.
Production 24 SEP - 28 SEP Producing the product started.
Development 2022
Started
Launching the Product 29 SEP 2022 Present the prototype to
Prototype Shareholder.
Continue the 30 SEP - 29 OCT Continue the production
production 2022 development to the market.
development
Product promotion 30 OCT- 1 NOV Make a promotion about a
2022 product through media,
socials, internet and other.
Product launching 2 NOV 2022 Launch product into the
market.
Business maintenance 3 NOV 2022 - Keep maintaining the business
ongoing in the market.
 8.0 CONCLUSIONS

In a nutshell, Pillow❤ has shown its potential to grow as it has reached a certain level
of criteria for success. The location chosen was Kuala Lumpur. It will be a good start for
Pillowsync to be known among our potential customers which is the society. Kuala Lumpur
was an ideal location for our business as it was a strategic place to commercialise our new
products. We are very determined to have a good business performance by serving good
quality products while earning great profits. We also have a efficacious management team
that is led by the Managing Director then followed by the Administrative Manager, Financial
Manager, Marketing Manager, and Operating Manager. In terms of positions, each of us have
roles and responsibilities in maintaining the company's performance. Our team will put all the
effort to make sure the company achieves its goals which is to provide the best quality
product to all. Lastly, for this project, we made a financial plan for our products to know the
project total capital expenditure, sale and purchases, cost involved, loan that we borrowed
and our profit for every year. Based on the financial plan, we may know the total loss or
profit we get when we sell our products to customers.
9.0 APPENDICES
REFERENCES
1. Radwan, A., Ashton, N., Gates, T., Kilmer, A., & VanFleet, M. (2021). Effect of

different pillow designs on promoting sleep comfort, quality, & spinal alignment:

A systematic review. European Journal of Integrative Medicine, 42, 101269.

https://doi.org/10.1016/j.eujim.2020.101269

2. Evaluation of a Body Pillow to Aid Pediatric Spinal Fusion Recovery. (2014).

Children’s Health Care.

https://www.tandfonline.com/doi/full/10.1080/02739615.2014.850886?scroll=top&ne

edAccess=true

3. Quintero, K. C., Condez, V. M., Plaza, S. M., Bedolido, M. J., & Ermita, P. (2018).

Design and Development of Maternity Pillow: An Ergonomic Approach. Lecture

Notes in Electrical Engineering, 453–462. https://doi.org/10.1007/978-981-13-1059-

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