ENT300

FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS PLAN

F&E FOOD DELIVERY

PREPARED BY
NO. NAME UITM ID NO GROUP CODE
1. NUR HANIS AMIRAH BINTI AHMAD ZAMRI 2019643806 P2HS1144A2
2. SYED MUHAMMAD ADLI KHAN 2019812468 P2HS1144A2
3. AZMAN ARIFF BIN AHMAD MUSTAPHA 2019295988 P2HS1144A2
4. MUHAMMAD MUIZZUDIN BIN ABD RAZAK 2019409168 P2HS1144A1

PREPARED FOR
LECTURER’S : PUAN SHAIRA ISMAIL
NAME
SEMESTER : MAC – AUGUST 2021
SUBMISSION : 12TH. JULY – 15TH. JULY 2021
DATE
 TABLE OF CONTENTS

4
EXECUTIVE SUMMARY

1. INTRODUCTION
6
1.1 Introduction Business
7
1.2 Purpose of Business Plan
7
1.3 Business Partner Background
8
1.4 Business Location
14

2.0 Administration Plan

2.1 Introduction Organizational Plan 16
2.2 Organizational Chart 17
2.3 Administration Personnel 17
2.4 List and Task Responsibilities of Administration Personnel 18
2.5 Schedule Remuneration 20
2.6 Compensation and Benefits 20
2.7 List of Office Equipment 21
2.8 List of Office Furniture & Fittings 21
2.9 Administration Budget 22

3.0 Marketing Plan

24
3.1 Objective
24
3.2 Service Description
25
3.3 Target Market
27
3.4 Market Trend & Market Size
28
3.5 Market Share
29
3.6 Competition
29
3.7 Sales Forecast
30
3.8 Marketing Strategies
31
3.9 Marketing Budget

Page | 2
4.0 Operation Plan
4.1 Objectives 33
4.2 Production Plan 34
4.3 Operation Layout 36
4.4 Capacity Planning 39
4.5 Manpower Planning 39
4.6 Machine & Equipment Planning 40
4.7 Overhead Requirement 41
4.8 Location 41
4.9 Business & Operation Hours 42
4.10 License & Permits 43
4.11 Operation Budget 44
4.12 Implementation Schedule 45

5.0 Financial Plan

5.1 Objective 47
5.2 Project Implementation Cost 47
5.3 Sources of Finance 54
5.4 Pro Forma Cash Flow Statement 58
5.5 Pro Informa Income Statement 61
5.6 Pro Forma Balance Sheet 61
5.7 Financial Analysis 63

6.0 Business Model Canvas (BMC) 69

7.0 Conclusion & Summary 71

8.0 APPENDICES 75

Page | 3
Executive summary

F&E FOOD DELIVERY is a newly operated business in Petaling Jaya. The name F&E
represent “Fast and Efficient” which is also our company’s motto. Align with our motto, we
want our customers to get their order fast by offering a quality rider who do their job efficiently.
We provide training session to our rider and prepared them to be reliable and efficient. F&E
offer a food delivery service to the community during this pandemic to make it accessible and
convenient to our consumers. Our company focus on quality and our service is the cheapest
among competitors. We only charge RM12 to our partners which is business owners from
many restaurants. Not just that, our partners will get benefit from this because they will earn
more compared to what they sell offline. With this, our service not only benefit us, but the
customers, the public, and the business owners. Also, our location is very strategic because
it is located near big malls, shops lot, residential area and campuses. The location is present
with our target market which is individuals aged 15-54 years old. Our company runs by 4
manager which general manager, marketing manager, operation manager and financial
manager. Not to forget our company also hired a clerk to do general works. Finally, we feel
that our business financial statement will enable us to fulfill our business aim. We are confident
that the positive people perception of our service will expand because of our company's great
performances, which focus on precision and quality.

Page | 4
CHAPTER 1: INTRODUCTION

Page | 5
CHAPTER 1: INTRODUCTION

1.1 INTRODUCTION TO THE BUSINESS

1. Name of the business F&E Food Delivery

2. Business Legal Entity Partnership

3. Nature of Business Providing Services

4. Business Location Pjs 10/2, bandar sunway, 47500 Petaling Jaya

5. Date of Commencement 20 June 2021

6. Factor Selecting Proposed • High Demand

Business
• High market size

• High socioeconomic status

7. Future Prospect Business • To be one of the well-known brands for

food delivery in Petaling Jaya in 2
years.

• Can deliver to other district in 3 years.

Business deals will provide more profit
to our partners.

Page | 6
1.2 PURPOSE OF BUSINESS PLAN

It enabled the entrepreneur to objectively, critically, and practically assess the proposed
business venture. The business plan can highlight the potential of the business to the
entrepreneur and lead to an improvement for business management. Furthermore, to
reassure potential investors about the investment prospects of the project. The business plan
includes information about the company's operations, administration, marketing, and financial
condition. As a result, potential investors can get a general idea of how the company runs. In
addition, entrepreneurs can determine the strengths and weaknesses of their service by using
this business plan. In addition, this business plan prepares the entrepreneur to manage project
finances. This is due to the entrepreneur disclosing all of the costs of running the business.
This enables the entrepreneur to thoroughly manage the budget for financial analysis.

1.3 BUSINESS BACKGROUND

Name of Business F&E Food Delivery

Business address Pjs 10/2, bandar sunway, 47500 Petaling Jaya

Correspondence address Pjs 10/2, bandar sunway, 47500 Petaling Jaya

Website address f&efooddelivery@gmail.com

Telephone number +603-55287388

Fax number +603-55287399

Business activity Delivering food in Petaling Jaya

Date of commencement 13 January 2021

Date of registration 15 November 2020

Registration number 963753-P

Name of bank CIMB BANK

Bank account 5697020235

Page | 7
1.4 BUSINESS PARTNERS BACKGROUND

1.4.1 General Manager/Administrative Manager

Name Nur Hanis Amirah binti Mohd Zamri

Identity card number 000827-02-0414

Date of birth 27 August 2000

Marital status Single

Permanent address No 920, Lorong 27, Taman Desa Bidara,

09300 Kuala Ketil, Kedah.
Correspondence address No 920, Lorong 27, Taman Desa Bidara,
09300 Kuala Ketil, Kedah.
Email address hanisamirah@gmail.com

Telephone number 0136190509

Academic qualification Diploma in Physiotherapy

Course attended Online course in New Era Digital and Social

Media Marketing, University of Buckingham,
England.
Skills a) Excellent verbal and written
communication.
b) The ability to maintain and enforce high
standards even when under pressure.

Page | 8
 c) capable of planning and managing the
performance of the company
Experience Used to work as general manager at local
restaurant

Page | 9
1.4.2 Marketing Manager

Name Syed Muhammad Adli Khan Bin Syed Leyar

Kath Ali Khan
Identity card number 000526-14-0439

Date of birth 26 May 2000

Marital status Single

Permanent address No 10 Jalan 7 Taman Dato Harun 46000

Petaling Jaya Selangor
Correspondence address No 10 Jalan 7 Taman Dato Harun 46000
Petaling Jaya Selangor
Email address syxdkhan@gmail.com

Telephone number 019-3460996

Academic qualification Diploma in Physiotherapy

Course attended 1) Attended a short marketing course,

University of Michigan
2) attended online course in Digital and
Social Media Marketing, University
of Missouri
Skills 1) Able to coordinate marketing
strategies with sales and production
department
2) Able to develop a marketing strategy
within the relocated budget

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 3) Able to increase brand awareness
and market share

Experience 1) Works as Marketing Manager at

TheKhans.Co (2018-2020)
2) Works as Digital Marketing Manager
at FashionValet (2020-2021)

Page | 11
 1.4.1 Operational Manager

Name AZMAN ARIFF BIN AHMAD MUSTAPHA

Identity card number 010202-05-0073

Date of birth 2 February 2001

Marital status Single

Permanent address 5, Jalan Kasban 5/KU8, Taman Meru

Correspondence address
Email address
Makmur 2
41050 Meru Klang
5, Jalan Kasban 5/KU8, Taman Meru
Makmur 2
41050 Meru Klang
Azriff122@gmail.com

Telephone number 011-11475254

Academic qualification Diploma Physiotherapy UiTM Cawangan

Pulau Pinang Kampus Bertam

Course attended Administration and Operation Management

at UiTM Merbok
Skills Leadership Skills

Experience No Working Experience

Page | 12
 1.4.2 Financial Manager

Name Muhammad Muizzuddin bin Abd Razak

Identity card number 010413070357

Date of birth 13 April 2001

Marital status Single

Permanent address No7, Lrg Bertam Indah 25, Tmn Bertam

Indah, 13200 Kepala Batas Pulau Pinang.
Correspondence address No7, Lrg Bertam Indah 25, Tmn Bertam
Indah, 13200 Kepala Batas Pulau Pinang.
Email address muizzrazak1341@gmail.com

Telephone number 0166072599

Academic qualification Diploma in Physiotherapy

Course attended Bachelor in Financial Accounting at The

University of Edinburgh, Scotland.
Skills d) Ability to oversee budgeting, planning
and auditing
Experience Used to work as waiter and cashier at food
stall

Page | 13
1.4 BUSINESS LOCATION

1.4.1 Factors Influencing Choice of Business Location

We chose Bandar Sunway as a strategic location because it is close to malls, schools,
colleges, hospitals, restaurants, houses, and the main road, where more people who
use the road will notice our service. Aside from that, this location is well-known among
both locals and tourists. The landlord has offered us RM500,000 to purchase the
building. It is the most excellent value considering that it is in a high-traffic area, where
most of the buildings can reach to 1 million and above.

1.4.2 Office Location

Page | 14
CHAPTER 2: ADMINISTRATION
PLAN

Page | 15
2.0 ADMISTRATION PLAN

2.1 Introduction to The Organization Plan

2.1.1 Vision
1) To help people to explore and buy variety of food through our applications
2) To become a catalyst of our economy activity during Movement Control Order
(MCO)
3) To maintain consumer power during the MCO
4) To provide a high quality and delicious food to the front door customers’ house
5) To provide high demand job

2.1.2 Mission
1) To provide high quality service food delivery and become best food delivery
service in country that deliver cuisine on time at affordable price

2.1.3 Objective

1) To deliver customer's order on time.

2) Deliver up to 200 customers per day.
3) Reach sales 100% each year.

Logo Description

F&E Which translates to "fast and efficient." Based on the fact that our
client does not have to wait long for their food and our riders are
required to take a management course to ensure a smooth
delivery process.

Page | 16
 Blue Because it creates trust in the brand while also conveying
professionalism and strength.
Red It stimulates the appetite, attracts attention, and creates
excitement for the brand.
Motorcycle since all of our riders deliver meals on motorcycles to ensure a
smooth ride and fast delivery of food to our customers

2.2 Organization Chart

2.3 Admistration Personnel

Position Number of Personnel
General Manager/ Admisnistration Manager 1
Marketing Manager 1
Operation Manager 1
Financial Manager 1
Administration clerk 1
TOTAL 5

Page | 17
2.4 List task and responsibilities of admistration personnel

Position Task and Responsibilities

General Manager a) To have a strong leadership quality.
b) To identifying potential areas for
development
c) To hiring, training and evaluating
employee’s performance.
Administration Manager a) To preserve the overall look and condition
of the facility.
b) To identifying opportunities to improve a
business’ policies
c) To ensure that an organization's
operations are smooth and efficient
d) To direct, manage, and supervise the
organization's support services in order to
ensure its success
Marketing Manager a) To ensure that customers are interested
in and driven to buy the product or service
that is being given.
b) To increase consumer awareness and
demand for the services
c) To encourage repeat purchases to
maintain and expand sales.
d) To boost the brand's authority
e) To increase sales and revenue
Operation Manager a) To lead and operate the company
operation
b) To ensure every aspect of process of
operation is smooth
c) To minimize the the cost of process
operation every month
Financial Manager a) To determine size of investment
b) To identify and propose the relevant
sources of finance
c) To ensure the initial capital is sufficient

Page | 18
d) To analyse the viability of the project
before actual investment is committed
e) To be used as a guideline for project
implementation

Page | 19
2.5 Schedule of Remuneration

Position No Monthly salary EPF SOCSO Total (RM)

(RM) Contribution Contribution
(11%) (RM) (1.75%) (RM)
General Manager/ 1 4000 440 70 4510
Administration
Manager
Marketing Manager 1 2000 220 35 2255
Operation Manager 1 2000 220 35 2255
Financial Manager 1 2000 220 35 2255
Administrative Clerk 1 1800 198 32 2030
TOTAL 5 11800 1298 207 13305

2.6 Compensation and benefits

Bil Compensation and benefits Details

1 Salary Working days: 24 days per month
EPF (11%) Working hour: 8 hours (business
SOCSO (1.75%) hour:9am-5pm) (office hour: 9am-5pm)
Minimum salary: RM1800 per month
2 Maternity leave & Paternity leave Maternity leave: 300 days during working
period
Paternity leave: 10 days during working
period
3 Annual leave Less than 2 years: 8 days leave per year
2-5 years: 12 days per year
More than 5 year: 16 days per year
4 Sick leave Less than 2 years: 15 days per year
2-5 years: 19 days per year
More than 5 years: 22 days per year
5 Bonus 12% of salary for eid celebration
20% of salary for every end year

Page | 20
2.7 List of Office Equipment

Item Quantity Price/per unit (RM) Total cost (RM)

Computer 3 1200 3600
Fax machine 1 400 400
Photostat machine 1 1800 1800
Cordless phone 5 100 500
TOTAL 6,300

2.8 List of Office Furniture & Fittings

Item Quantity Price/per unit (RM) Total cost (RM)

Lamp 100 20 2000
Office chair 5 200 1000
Office desk 5 400 2000
Meeting table set 1 1200 1200
Air conditioner 12 2000 24000
File cabinet 6 300 1800
TOTAL 30,000

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2.9 Administrative budget

ADMINISTRATIVE BUDGET

Fixed
Monthly Other Total
Assets
Expenses Expenses
Expenses
(RM) (RM)
(RM)
Particulars (RM)
Fixed Assets
Land & Building 500000 500000
Furniture 30000 30000
Office Equipment 6300 6300
Working Capital
Wages Administrative 16000 16000
Salaries, EPF & SOCSO 13305 13305
Utilities 1000 1000
Other Expenditure
Other Expenditure - -
Pre-Operations
Deposit (rent, utilities, etc.) 2500 2500
Business Registration & Licences 1000 1000
Insurance & Road Tax for Motor - -

Vehicle
Other Pre-Operations Expenditure - -
Total - - - 570,105

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CHAPTER 3: MARKETING PLAN

Page | 23
3.0 MARKETING PLAN
All of company's operations aimed at promoting and selling products or services to
customers are referred to as marketing. Marketing is crucial because it acts as the most
important tools for business. To enter the market, marketing plan plays an important role.
Marketing aiming to take a product or service, identify its ideal customers, and bring that
product or service to their notice. It is also to develop information pieces that appeal to the
target audience and make the information available to places they go.

3.1 Objectives
1. To attract the customers by 85% to use our service that we offer in daily basis.
2. To increase market share by 30% by 2024
3. To increase consumer awareness and demand for the services by 75% in 1 year after
operation.
4. To encourage repeat purchases to maintain sales 100% every year
5. To boost the brand's authority within 1 year of operation
6. To increase sales up to 45% by 2024

3.2 Service descriptions

F&E is food delivery service where we based in Petaling Jaya, Selangor. Our service
is a platform where customers can buy food via online and get delivered right to their place.
We think this is the best idea to enter the market as Food and Beverage industry are less
affected during this pandemic. During this pandemic year’s, people are now preferring to order
food online as they can reduce the spread of the covid-19. Our customers can enjoy wide
range of food and beverage without any limitation as their order can be delivered right to their
doorstep. Delivery service are so popular now in facts the demand for delivery services is
increasing and more company have ventured their business in delivery service. What makes
F&E different than other company is we stick to our motto which is “fast and efficient”. Our
rider will seat for their course before they start their job as a F&E rider. This is because we
want our rider to be efficient in doing their job in line with our motto. We take this opportunity
to help the public by offering a job opportunity as a rider, especially to those who lost their job
due to this pandemic. Also, F&E only take the least commission on each order which is RM12
because we want to be competitive in the market. Our partners will get benefit from this
because they will earn more compared to what they sell offline. With this, our service not only
benefit us, but the customers, the public, and the business owners.

Page | 24
3.3 Target Market

Segmenting market

The activity of grouping or segmenting a market of potential consumers based on

numerous characteristics is known as market segmentation. Market segmentation is a part of
marketing strategy. In this section, market segmentation plays an important role to identify
their groups of consumers so a product lines can be offered to them. Consumers who have
similar responses to marketing techniques and share characteristics such as similar interests,
needs, or location make up the segments. Its goal is to ensure that businesses may divide
their customers into groups and effectively promote their service or product. Markets can be
segmented in three ways which is geographic segmentation, psychographic segmentation,
and demographic segmentation.

3 common based of segmentation:

⚫ Geographic segmentation
⚫ Psychographic segmentation
⚫ Demographic segmentation

Geographic segmentation
The division of a company's market by geography is known as geographic segmentation.
Cities, countries, regions, nations, and international locations can all be classified as markets.
A market can be split into three types of areas: rural, suburban, and urban. We may determine
the product that the consumer need at a specific area using this segmentation.

For F&E food delivery, location is the most crucial decision. So, we decided to place our
company in Bandar Sunway, Petaling Jaya 47500, Selangor and has been selected as our
main location. Our business location is very strategic for our company because the area is
near to malls that has variety of restaurants to choose from. With this, it is easier to reach our
target consumers both from business owners and consumers. We believed with a strategic
location; we can attract more business owners to be part of our partners. Many high and
medium class society that lives in Petaling Jaya prefer online services because it is more
convenient. We saw this as a big opportunity for us to set up a food delivery service with a
competitive price at the location.

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Psychographic segmentation
Psychographic segmentation divides the market into groups based on the customer's lifestyle.
One sort of lifestyle measurement method is activities, interest, and opinion (AIO)
questionnaires. It examines several factors that could influence purchase behavior, including
customer attitudes, expectations, and behaviors. It was created in the 1970s and investigates
customer decision-making processes, attitudes, values, personalities, lifestyles, and
communication preferences using behavioral and social sciences.

Most of the population in Petaling Jaya are working people which they have limited time at
home. People who work during pandemic cannot dine into the restaurant. We take this as a
big opportunity to provide delivery service during lunch hour. This will attract people to use our
service more as it will become convenient to them. When they have no time to buy food, this
is where F&E food delivery come in handy. Our service will fulfill the customer demand which
they can order anything that available and will deliver to the customers directly. These people
are aware of this service because it will make their work easier and better.

Demographic segmentation
Market segmentation based on age, race, religion, gender, family size, ethnicity, income, and
education are known as demographic segmentation. Demographics can be divided into
numerous markets to help a company better target its customers.

Our service is offered to individual aged 15-54. We also focusing to the youngsters as they
were more tech-savvy. Regardless of any religion, gender, ethnicity and income, our food
delivery service is applicable to all users. Anyone using our services are accessible to get food
delivery services. This service provides benefits to all individuals.

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3.4 Market Trend and Market Size
Market size
Population in selangor 2020 = 6,538,100
Population in Petaling Jaya 2020 = 520,682

Population in Selangor based on targeted age

Age Total
15-19 482,100
20-24 544,300
25-29 600,900
30-34 697,900
35-39 642,300
40-44 477,800
45-49 400,400
50-54 333,800
Total 4,179,500

Total of population in Selangor / total population in selangor based on targeted age

4,179,500 / 6,538,100 = 0.64

0.64 X 520,682(total of population in Petaling jaya 2020) = 333,247(new total of populations

in Petaling jaya based on targeted age)

333,247 X RM30 (average price)

= RM6,664,940 = Market size

Our sales forecasting is 13% for the market size

RM6,664,940 X 13% = RM866,448 (per year)

From sales forecasting we would be able to generate how many customers per year

our service price is RM 12.00 per order

866,448 / RM12.00 =RM72,204 per month

RM72,204 / 12 months = 6017 customers per month

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6017/ 30 (working days) = 201 customers per day

No. Service Estimate sale per Total estimated Total estimated

customers sales/monthly (RM) sales/yearly (RM)

1. F&E Food RM12.00 x 6017 72,204 866,448

Delivery

3.5 Market share

Market share is defined as the division of a market or sales between organizations who
engage in the same type of company. It will consider the number of competitors, their
experiences, as well as their strengths and weaknesses.
The table below shows market share distribution before and after our company entered the
market.
Market share before F&E entered:
Competitors Market share Total market share
(%) (RM)
GRAB 65 4,332,211
FOOD PANDA 35 2,332,729
Total 100 6,664,940

Market share after F&E entered:

Competitors Market share Total market share
(%) (RM)
GRAB 58 3,865,665
FOOD PANDA 29 1,932,832
F&E 13 866,448
Total 100 6,664,940

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3.6 Competition - Strength and Weakness of Competitors
Competitors Strength Weakness
GRAB Well known across Service charge are
Malaysia and also provide expensive even though the
a few other services distance is short
FOOD PANDA Mainly known as food Only covered 7KM from the
delivery company in restaurant location and
Malaysia and also provide expensive service charge.
other services as well

3.7 Sales Forecast

Sales forecast in a year :
Month Sales Forecast (RM)
January 72,204
February 72,204
March 72,204
April 72,204
May 72,204
June 72,204
July 72,204
August 72,204
September 72,204
October 72,204
November 72,204
December 72,204
Total 866,448

Sales forecast by year:

Year Percentage increase (%) Sales forecast (RM)
1 - 866,448
2 30% 1,126,382
3 30% 1,464,297

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3.8 Marketing Strategies
Service strategy
Name F&E FOOD DELIVERY
Service quality All riders must attend a seminar that will be provided by F&E
before start working in order to compliance with our motto.
Service package Flat rate service RM12.00 per order

Service differentiation Customer’s time will be our priority. All the order will be sent
out as soon as possible to the customer. All orders will be
efficiently sorted out and will spread evenly to the riders.
The restaurant will get more benefits because F&E will only
take RM12 for each order no matter how much the total on
the bill. The customer will get a pop-up notification right after
they get their food delivered to rate the food and the service.
After sales service Customers can rate our service and all rating will be taken
note and will improve in the future.

Pricing Strategy
As for pricing, our strategy is to be the lowest among our competitors because it can attract
our consumers. With affordable price, we hope to win in the market.
Table below showed the differences between F&E FOOD DELIVERY and the competitors.
Competitors Service Fee
GRAB 30% per order
FOOD PANDA 40% per food
F&E FOOD DELIVERY RM12.00 per order

Place/Distribution Strategy
We offer platform to the customers to orders food from their favorite restaurant. Our business
location is very strategic as our place near to big malls, shop lots, residential area and
campuses which make the area to have variety of food to choose from and all populations in
that area can use our service. Plus, our service is easy to use and convenient for all people.

Page | 30
Promotion strategy
Advertising
Advertising is the exercise of promoting a company and its products or services through paid
channels. As for F&E we channel our advertisement through radio advertising because radio
is 20% more effective at building brands than other mediums and radio ads are heard by a
large number of people so it can reach our targeted audience easily. Also, radio can be played
anywhere such as in the car, using the phone, and television. It is very convenience and
important for a new brand to grow. Apart from that, we also do a promotion through social
media platform such as Facebook, Instagram, Twitter, and TikTok. By using cutting-edge
technologies, we can successfully expand our business.

Table below showed the budget for the advertising and promotion
Items Price (RM)
Advertising 30,000
Promotion 5,000

3.9 Marketing Budget

Items Fixed Asset Working Capital Other Expenses

(RM) (RM) (RM)

Fixed Assets
Computer 30,000
Working Capital
Advertising 30,000
Promotion 5,000
Other Expenditure 3,000

Total (RM) 30,000 35,000 3,000

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CHAPTER 4: OPERATION PLAN

Page | 32
4.0 Operation Plan

4.1 Objective

One of the most important functions of a corporate organization is operations.

Managing operations is important to ensure that the firm can develop products or deliver
services that meet the customer's criteria, quality, and timing. Furthermore, operations
management is the process of marshalling business inputs and converting them into output in
the form of a product or service. As a result, operational objectives should be attainable and
precise in order to give clear guidance for our company's day-to-day operations.

Setting operational goals that all employees understand and embrace can be
challenging since they may have different priorities and beliefs. As a result, it's important to
engage employees in the goal-setting process and to make sure they understand what's
expected of them. Business plans can be designed to fulfil acceptable operational objectives
for each department after those objectives have been established.

Objective of operation included:

1. To improve operational management systems and techniques

2. To assist in keeping the organization's processes legal.
3. To make a list of strategic and tactical objectives and to maximize it’s achievement at
times
4. To examine financial information and put it to good use in order to maximize earnings
5. To manage budgets and projections for the firm.
6. To recruit, train, and manage employees.

Page | 33
4.2 Production planning

At 8 in the morning, our Customer confirm the

rider has started to take ordered and choose
Customer ordered food
ordered from the payment method either
from our apps
restaurant to deliver the cash or by online
food banking

After the payment Our partnertship In the same time our

complete, our app will restaurant receive the nearest rider go to the
send the order to our order and prepare the restaurant and wait for
partnership restaurant order for delivery the order completed

When the customer got

After food is complete, The time taken for food
their food, our app will
our food rider will to complete and deliver
notify our customer to
deliver the order to the to customer is between
rate or service order and
customer destination 20-40 minit
quality of the food

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4.2.1 Process Chart

At 8 in the morning, our rider has started to take ordered from the restaurant to
deliver the food

Customer ordered food from our apps

Customer confirm the ordered and choose payment method either cash or by
online banking

After the payment complete, our app will send the order to our partnership
restaurant

Our partnership restaurant receive the order and prepare the order for
delivery

In the same time our nearest rider go to the restaurant and wait for the order
completed

After food is complete, our food rider will deliver the order to the customer
destination

The time taken for food to complete and deliver to customer is between 20-
40 minutes

When the customer got their food, our app will notify our customer to rate or
service order and quality of the food

Page | 35
4.3 Operation Layouts

Page | 36
4.3.1 Description

Space Description

1. Counter The counter is used for registration our new

rider. Our counter have only one clerk to
manage the registration of new rider

2. Waiting Area Waiting area is used for our rider to wait if

they have any appointment or short course

3. General Office General manager office is private office used

by our general manager Pn. Hanis Amirah

4. Course Room Course room is used as place to teach and

give short course about how to be rider such
as registration, job of description and safety
steps that involved in insurance.

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5. Multiple Office This space is used as workplace for
marketing manager, operation manager and
financial manager. This is why the office
have 3 tables and 3 computers.

6. Storage Room Storage room is use to keep riders

equipment such as carrier, helmets and t-
shirt. Besides that, other files also will be
keep in this storage room

7. Pentry This space is used to rest place, eating place

during breakfast and lunch.

Page | 38
4.4 Capacity Planning

Information Calculation

1. Total Work Days 30 Days

2. Cost each service RM12
2. Sales forecast per year RM866,488

3. Average Sales Forecast Per month RM866,488/12

= Sales forecast/12 month = RM72,204

4. Number of outputs per month RM72,204/RM12

= average sales forecast monthly/price = 6017 unit
service
5. Sales day per unit 6017/30
= unit service per month/working days = 201

4.5 Manpower Planning

= 201/9 times 0.5 hours

= 13 worker in one day

Page | 39
4.6 Machine and Equipment Planning

Items Quantity Price per unit Total Cost

(RM) (RM)
Tables 14 250 3,500

Computer 6 3000 15,000

Chair 16 100 1,600

Sofa 3 2,500 7,500

Coffe table 1 150 150

Dinning Table 1 800 800

Refrigerator 1 1500 1,500

Kitchen 1 2500 2,500

Cabinet
Carriers 12 100 1,200

T-shirt 12 50 600

Total 34,350

Page | 40
4.7 Overhead Requirement

Fixed Overhead Cost (RM)

Office Equipment 34350

Business Registrations 1000

Variable Overhead Cost (RM)

Utilities 500

Salary 9800

EPF & SOCSO 2000

Promotion 5000

Other Expenditure 3000

Total 35650

4.8 Location

As service provider company, we did not bound with many factors to locate our office.
This is because, our office is used only for internal operation and short course for new rider.
Eventually, our main office should be located in strategic place we it’s easy to find. Besides
that with the strategic location we could do more promotion activity and reach many citizens
to know about our company and use our service.

Location: Pjs 10/2, bandar sunway, 47500 Petaling Jaya

Property Details

Property Type: Shop / Office Rent

Property Title Type: Individual

Build-up size: 160m2

Page | 41
4.9 Business And Operations Hours

Our company have different for each workers. This is because, all the manager are
worked based on the table below. But our food delivery open as early 8 in the morning until
the 10 p.m. therefore the minimum operation time for our food rider is 6 hours/day. This is
because to ensure our rider could gain profit as much as possible based on their hardworking.

Day Operation Hours

Monday 8.00 a.m – 5.00 p.m

Tuesday 8.00 a.m – 5.00 p.m

Wednesday 8.00 a.m – 5.00 p.m

Thursday 8.00 a.m – 5.00 p.m

Friday 8.00 a.m – 5.00 p.m

Saturday 8.00 a.m – 1.00 p.m

Page | 42
4.10 License and Permits

Our very first steps to register our company is by register our company at Suruhanjaya
Syarikat Malaysia (SSM). Then, we will register our company through offline since our
company is not small company. As a partnership company, I will register our company under
Limited Liablity Partnership company. The process involved in this resgetration offline
including submit three different names on the Borang PNA 42 form. The process of registration
might took 2-3 hours or 1 day. After that we will get our certificate that we already registered
company from SSM.

Through the process of register, we also need to register taxes and related serviced
we provided. In order to register our taxes we need to go to the Lembaga Hasil Dalam Negeri
(LHDN) to open a tax file at the Income Tax Department. Besides that, we also need to register
our employee Employee Provident Fund (EPF). During the process we need to attach our
certificate for business registration and other relevant SSM documents within seven days of
employing the workers.

Last but not least, we need to open our first cooperate account bank at CIMB Bank.
We choosed CIMB bank because CIMB is one of the trusted Bank in Malaysia and have good
reputation in Malaysia. Thus the bank meet our desire. To open new cooperate account bank,
we must have all the documents such as certificate from SSM and document registered from
LHDN.

Page | 43
4.11 Operation Budget

Fixed Monthly
Items Asset Expenses
(RM) (RM)
Fixed Asset
Application & Website 15,000
Computer 10,000

Working Capital
Carrier 1,500
T-Shirt 1,100

Other Expenditure

Total 25,000 2,600

Page | 44
4.12 Implementation Scheduled

Activities Deadline Duration

Incorporation of business March – April 2021 2 month

Application for permits & May – July 2021 3 month

license

Searching of premise May - June 2021 2 months

Procurement of machine June – July 2021 2 months

and raw material

Business opening Ogos 2021

Page | 45
CHAPTER 5: FINANCIAL PLAN

Page | 46
5.0 Financial Planning

5.1 Financial Plan Objective it to:

• To ensure allocation of resources being allocated fairly to all the department
• To identify and propose the relevant sources of finance
• To ensure the initial capital is sufficient
• To analyze the viability of the project before actual investment is committed
• To be used as a guideline for project implementation

5.2 Project Implementation Cost

Project implementation cost incorporates both long term and short term expenditure needed
to start a project.
- Long term expenditure refers to such expenditure as the procurement of plan, machinery,
equipment, vehicles and other fixed assets needed by the new business.
- Short-term expenditure, such as payments of utilities, salaries and wages, factory overheads,
purchase of raw materials or inventories, represent the amount of initial working capital
required to finance the daily operation until the business gets its first sale.
- Components of project implementation cost:
- Capital expenditure
- Working capital
- Other expenditure
- Contingency cost

Page | 47
 ADMINISTRATIVE EXPENDITURE
Fixed Assets RM
Land & Building 500,000
Furniture 30,000
Office equipment 6,300

Working Capital
Wages Administrative 16,000
Salaries, EPF & SOCSO 13,305
Utilities 1,000

Other Expenditure
Other Expenditure
Pre-Operations
Deposit (rent, utilities, etc.) 2,500
Business Registration & Licences 1,000
Insurance & Road Tax for Motor Vehicle
Other Expenditure
TOTAL 570,105

Page | 48
 MARKETING EXPENDITURE

Fixed Assets RM

Computer 30,000

Working Capital
Advertisement 30,000
Promotion 5,000

Other Expenditure
Other Expenditure 3000
Pre-Operations
Deposit (rent, utilities, etc.)
Business Registration & Licences
Insurance & Road Tax for Motor Vehicle
Other Expenditure

TOTAL 68,000

OPERATIONS EXPENDITURE

Fixed Assets RM

Application/Website 15,000
Computer 10,000

Working Capital
Raw Materials & Packaging -
Carriage Inward & Duty -
Salaries, EPF & SOCSO
Carrier 1,500
T-Shirt 1,100

Other Expenditure
Other Expenditure

Pre-Operations
Deposit (rent, utilities, etc.)
Business Registration & Licences
Insurance & Road Tax for Motor Vehicle
Other Expenditure
TOTAL 27,600

Page | 49
 SALES PROJECTION

Month 1 72,204

Month 2 72,204

Month 3 72,204

Month 4 72,204

Month 5 72,204

Month 6 72,204

Month 7 72,204

Month 8 72,204

Month 9 72,204

Month 10 72,204

Month 11 72,204

Month 12 72,204

Total Year 1 866,448

Total Year 2 1,126,382

Total Year 3 1,464,297

Page | 50
Table 2: Long term Expenditure

ADMINISTRATIVE BUDGET

Particulars F.Assets Monthly Exp. Others Total

Fixed Assets

Land & Building 500,000 500,000

Furniture 30,000 30,000

Office equipment 6,300 6,300

- -

- -

Working Capital

Wages Administrative 16,000 16,000

Salaries, EPF & SOCSO 13,305 13,305

Utilities 1,000 1,000

- -

- -

- -

- -

Pre-Operations & Other Expenditure

Other Expenditure -

Deposit (rent, utilities, etc.) 2,500 2,500

Business Registration & Licences 1,000 1,000

Insurance & Road Tax for Motor Vehicle - -

Other Pre-Operations Expenditure - -

Total 536,300 30,305 3,500 570,105

Page | 51
 MARKETING BUDGET

Particulars F.Assets Monthly Exp. Others Total

Fixed Assets

Computer 30,000 30,000

- -

- -

- -

Working Capital

Advertisement 30,000 30,000

Promotion 5,000 5,000

- -

- -

- -

- -

- -

Pre-Operations & Other Expenditure

Other Expenditure 3,000

Deposit (rent, utilities, etc.) - -

Business Registration & Licences - -

Insurance & Road Tax for Motor Vehicle - -

Other Pre-Operations Expenditure - -

Total 30,000 35,000 3,000 65,000

Page | 52
 OPERATIONS BUDGET

Particulars F.Assets Monthly Exp. Others Total

Fixed Assets

Application/Website 15000 15,000

Computer 10000 10,000

Working Capital

Raw Materials & Packaging - -

Carriage Inward & Duty - -

Salaries, EPF & SOCSO - -

Carrier 1,500 1,500

T-Shirt 1,100 1,100

- -

- -

Pre-Operations & Other Expenditure

Other Expenditure -

Deposit (rent, utilities, etc.) - -

Business Registration & Licences - -

Insurance & Road Tax for Motor Vehicle - -

Other Pre-Operations Expenditure - -

Total 25,000 2,600 - 27,600

Page | 53
 5.3 Sources of finance
Sources of finance refers to the sources where funds to finance a particular project’s
implementation costs can be secured. These can be categorised into internal and external
sources. The internal sources mainly come in the form of equity contributions from the
entrepreneurs. These contributions can either be in the form of cash or other assets.
Components of sources of finance:
- Internal sources
- Equity contributions (cash and/or assets)
- External sources
- Term loan
- Hire purchase
- Others

Table 3 : Source of Finance

F&E DELIVERY
PROJECT IMPLEMENTATION COST & SOURCES OF FINANCE

Project Implementation Cost Sources of Finance

Requirements Cost Loan Hire-Purchase Own Contribution

Fixed Assets Cash Existing F. Assets

Land & Building 500,000 500,000
Furniture 30,000 10,000 20,000
Office equipment 6,300 6,300

Computer 30,000 30,000

Application/Website 15,000 15,000

Computer 10,000 10,000

Working Capital 1 months

Administrative 30,305 30,305
Marketing 35,000 35,000
Operations 2,600 2,600
Pre-Operations & Other Expenditure 6,500 6,500
Contingencies 10% 66,571 66,571

TOTAL 732,276 137,276 95,000 500,000

Page | 54
F&E DELIVERY

DEPRECIATION SCHEDULES

Fixed Asset Furniture Fixed Asset Office equipment

Cost (RM) 30,000 Cost (RM) 5,000
Method Straight Line Method Straight Line
Economic Life (yrs) 5 Economic Life (yrs) 5

Annual Accumulated Annual Accumulated

Year Depreciation Depreciation Book Value Year Depreciation Depreciation Book Value

- - 30,000 - - 5,000

1 6,000 6,000 24,000 1 1,000 1,000 4,000

2 6,000 12,000 18,000 2 1,000 2,000 3,000

3 6,000 18,000 12,000 3 1,000 3,000 2,000

4 6,000 24,000 6,000 4 1,000 4,000 1,000

5 6,000 30,000 - 5 1,000 5,000 -

6 0 0 - 6 0 0 -

7 0 0 - 7 0 0 -

8 0 0 - 8 0 0 -

9 0 0 - 9 0 0 -

10 0 0 - 10 0 0 -

Page | 55
 F&E DELIVERY

LOAN & HIRE-PURCHASE AMMORTISATION SCHEDULES

LOAN REPAYMENT SCHEDULE HIRE-PURCHASE REPAYMENT SCHEDULE

Amount 131,660 Amount
Interest Rate 5% Interest Rate 5%
Duration
(yrs) 5 Duration (yrs) 5
Method Baki Tahunan
Principal
Year Principal Interest Total Payment Principal Balance Year Principal Interest Total Payment Balance

- - 131,660 - - -
1 26,332 6,583 32,915 105,328 1 - - - -
2 26,332 5,266 31,598 78,996 2 - - - -
3 26,332 3,950 30,282 52,664 3 - - - -
4 26,332 2,633 28,965 26,332 4 - - - -
5 26,332 1,317 27,649 - 5 - - - -
6 0 0 - - 6 - - - -
7 0 0 - - 7 - - - -
8 0 0 - - 8 - - - -

9 0 0 - - 9 - - - -

10 0 0 - 10 - - - -

Page | 56
Fixed Asset Computer Fixed Asset
Cost (RM) 30,000 Cost (RM)
Method Straight Line Method Straight Line
Economic Life (yrs) 5 Economic Life (yrs) 5
Annual Accumulated Annual Accumulated
Year Depreciation Depreciation Book Value Year Depreciation Depreciation Book Value

- - 30,000 - - -
1 6,000 6,000 24,000 1 - - -
2 6,000 12,000 18,000 2 - - -
3 6,000 18,000 12,000 3 - - -
4 6,000 24,000 6,000 4 - - -
5 6,000 30,000 - 5 - - -
6 0 0 - 6 - - -
7 0 0 - 7 - - -
8 0 0 - 8 - - -
9 0 0 - 9 - - -
10 0 0 - 10 - - -

Fixed Asset Application/Website Fixed Asset Computer

Cost (RM) 15,000 Cost (RM) 10,000
Method Straight Line Method Straight Line
Economic Life (yrs) 5 Economic Life (yrs) 5

Annual Accumulated Annual Accumulated

Year Depreciation Depreciation Book Value Year Depreciation Depreciation Book Value

- - 15,000
1 3,000 3,000 12,000
2 3,000 6,000 9,000
3 3,000 9,000 6,000
4 3,000 12,000 3,000
5 3,000 15,000 - 5
6 0 0 -
7 0 0 -
8 0 0 -
9 0 0 -
- - 10,000
1 2,000 2,000 8,000
2 2,000 4,000 6,000
3 2,000 6,000 4,000
4 2,000 8,000 2,000
2,000 10,000 -
6 0 0 -
7 0 0 -
8 0 0 -
9 0 0 -

10 0 0 - 10 0 0 -

Page | 57
5.4 PRO FORMA CASH FLOW STATEMENT

Pro forma cash flow statement refers to the projected statement of cash inflow and cash
outflow throughout the planned period. Under normal circumstances, the pro forma cash flow
statement is prepared for three consecutive years, detailed by month for the first year and by
year for the second and third years. However, longer periods are sometimes needed
depending upon the projects undertaken.

The total amount of funds that has to be sourced should equal the total project
implementation cost calculated earlier. This is to ensure that the project is fully funded as
well as to avoid the risks of under-financing.

The pro forma cash flow statement following information:

- Cash inflows–the projected amount of cash flowing into the business.
- Cash outflows–the projected amount of cash flowing out of the business.
- Cash deficit or surplus–the difference between cash inflows and outflows.
- Cash position–the beginning and ending cash balances for a particular period.

Page | 58
Table 4: Cash Flow

F&E DELIVERY
CASH FLOW PRO FORMA STATEMENT

Pre-
TOTA
MONTH Operati 1 2 3 4 5 6 7 8 9 10 11 12 YEA YEA
L YR
ons R2 R3
1

CASH INFLOW

95,00
Capital (Cash) 95,000 0

137,27 137,2
Loan 6 76

1,12 1,46
72, 72, 72, 72, 72, 72, 72, 72, 72, 72, 72, 72, 866,4 6,38 4,29
Cash Sales 204 204 204 204 204 204 204 204 204 204 204 204 48 2 7

Collection of
Accounts Receivable

1,12 1,46
TOTAL CASH 232,27 72, 72, 72, 72, 72, 72, 72, 72, 72, 72, 72, 72, 1,098,
6,38 4,29
INFLOW 6 204 204 204 204 204 204 204 204 204 204 204 204 724
2 7

CASH OUTFLOW

Administrative
Expenditure

Wages 16, 16, 16, 16, 16, 16, 16, 16, 16, 16, 16, 16, 192,0 211, 253,
Administrative 000 000 000 000 000 000 000 000 000 000 000 000 00 200 440

Salaries, EPF & 13, 13, 13, 13, 13, 13, 13, 13, 13, 13, 13, 13, 159,6 175, 210,
SOCSO 305 305 305 305 305 305 305 305 305 305 305 305 60 626 751

1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,0 12,00 13,2 15,8
Utilities 00 00 00 00 00 00 00 00 00 00 00 00 0 00 40

Marketing
Expenditure

30, 30, 30, 30, 30, 30, 30, 30, 30, 30, 30, 30, 360,0 396, 475,
Advertisement 000 000 000 000 000 000 000 000 000 000 000 000 00 000 200

5,0 5,0 5,0 5,0 5,0 5,0 5,0 5,0 5,0 5,0 5,0 5,0 60,00 66,0 79,2
Promotion 00 00 00 00 00 00 00 00 00 00 00 00 0 00 00

Operations
Expenditure

Cash Purchase

Payment of Account
Payable

Carriage Inward &

Duty

Salaries, EPF &

SOCSO

1,5 1,5 1,5 1,5 1,5 1,5 1,5 1,5 1,5 1,5 1,5 1,5 18,00 19,8 23,7
Carrier 00 00 00 00 00 00 00 00 00 00 00 00 0 00 60

Page | 59
 1,1 1,1 1,1 1,1 1,1 1,1 1,1 1,1 1,1 1,1 1,1 1,1 13,20 14,5 17,4
T-Shirt 00 00 00 00 00 00 00 00 00 00 00 00 0 20 24

3,0 3,30 3,96

Other Expenditure 00 3,000 0 0

Pre-Operations

Deposit (rent,
utilities, etc.) 2,500 2,500

Business
Registration &
Licences 1,000 1,000

Insurance & Road

Tax for Motor Vehicle

Other Pre-Operations
Expenditure

Fixed Assets

Purchase of Fixed
Assets - Land &
Building

Purchase of Fixed 91,30

Assets - Others 91,300 0

Hire-Purchase Down
Payment

Hire-Purchase
Repayment:

Principal

Interest

Loan Repayment:

2,2 2,2 2,2 2,2 2,2 2,2 2,2 2,2 2,2 2,2 2,2 2,2 27,45 27,4 27,4
Principal 88 88 88 88 88 88 88 88 88 88 88 88 5 55 55

5,49 4,11
Interest 572 572 572 572 572 572 572 572 572 572 572 572 6,864 1 8

Tax Payable 0 0 0 0

1,11
TOTAL CASH 73, 70, 70, 70, 70, 70, 70, 70, 70, 70, 70, 70, 946,9 932,
94,800 1,14
OUTFLOW 765 765 765 765 765 765 765 765 765 765 765 765 79 592
9

-
CASH SURPLUS 137,47 1,4 1,4 1,4 1,4 1,4 1,4 1,4 1,4 1,4 1,4 1,4 151,7 193, 353,
1,5
(DEFICIT) 6 39 39 39 39 39 39 39 39 39 39 39 45 790 148
61

137 135 137 138 140 141 143 144 145 147 148 150
BEGINNING CASH 151, 345,
,47 ,91 ,35 ,79 ,23 ,67 ,11 ,54 ,98 ,42 ,86 ,30
BALANCE 745 535
6 5 4 3 2 1 0 9 8 7 6 6

135 137 138 140 141 143 144 145 147 148 150 151
ENDING CASH 137,47 151,7 345, 698,
,91 ,35 ,79 ,23 ,67 ,11 ,54 ,98 ,42 ,86 ,30 ,74
BALANCE 6 45 535 683
5 4 3 2 1 0 9 8 7 6 6 5

Page | 60
5.5 PRO INFORMA INCOME STATEMENT
Expected profit or loss for the F&E Delivery Company in upcoming three consecutive years.

F&E DELIVERY
PRO-FORMA INCOME STATEMENT

Year 1 Year 2 Year 3

Sales 866,448 1,126,382 1,464,297

Less: Cost of Sales

Opening stock

Purchases

less: Ending Stock

Carriage Inward & Duty

Gross Profit

Less: Enpenditure

Administrative Expenditure 363,660 400,026 480,031

Marketing Expenditure 420,000 462,000 554,400

Other Expenditure 3,000 3,300 3,960

Business Registration & Licences 1,000

Insurance & Road Tax for Motor
Vehicle
Other Pre-Operations Expenditure

Interest on Hire-Purchase

Interest on Loan 6,864 5,491 4,118

Depreciation of Fixed Assets 18,260 18,260 18,260

Operations Expenditure 31,200 34,320 41,184

Total Expenditure 843,984 923,397 1,101,953

Net Profit Before Tax 22,464 202,985 362,344

Tax 0 0 0
Net Profit After Tax 22,464 202,985 362,344

Accumulated Net Profit 22,464 225,449 587,793

5.6 PRO FORMA BALANCE SHEET

Pro forma balance sheet shows the financial position of the business at a specific point in
term of assets owned and how those assets are financed.

Assets = Owner’s equity + Liabilities

Page | 61
 F&E DELIVERY
PRO-FORMA BALANCE SHEET

Year 1 Year 2 Year 3

ASSETS

Fixed Assets (Book Value)

Land & Building 500,000 500,000 500,000
Furniture 24,000 18,000 12,000
Office equipment 5,040 3,780 2,520

Computer 24,000 18,000 12,000

Application/Website 12,000 9,000 6,000

Computer 8,000 6,000 4,000

573,040 554,780 536,520

Current Assets
Stock of Raw Materials 0 0 0
Stock of Finished Goods 0 0 0
Accounts Receivable
Cash Balance 151,745 345,535 698,683
151,745 345,535 698,683

Other Assets
Deposit 2,500 2,500 2,500

TOTAL ASSETS 727,285 902,815 1,237,703

Owners' Equity
Capital 595,000 595,000 595,000
Accumulated Profit 22,464 225,449 587,793
617,464 820,449 1,182,793
Long Term Liabilities
Loan Balance 109,820 82,365 54,910
Hire-Purchase Balance
109,820 82,365 54,910
Current Liabilities
Accounts Payable

TOTAL EQUITY & LIABILITIES 727,285 902,815 1,237,703

Page | 62
5.7 FINANCIAL ANALYSIS

Pro forma income statement shows the financial position of the business at a specific point
in term of assets owned and how those assets are financed.
Liquidity Ratios
⚫ The term liquidity refers to the availability of liquid assets to meet short-term obligations.
Thus, liquidity ratios measure the ability of the business to pay its monthly bills.
⚫ The most widely used liquidity ratios are current ratio and quick ratio.

Current ratio can be determined by dividing total current assets by total current liabilities.
Generally, this ratio shows the business’ ability to generate cash to meet its short term
obligations.
If the business’ current ratio falls below 1, it means that the business is in a serious liquidity
situation. In most cases, the comfortable current ratio for most businesses is ‘2’.
⚫ Quick ratio, also known as the acid test ratio, measures the extent to which current
liabilities are covered by liquid assets.
To determine quick ratio, the calculation of liquid assets does not take into account
inventories since it is sometimes difficult to convert them into cash quickly.

Efficiency Ratios
⚫ The efficiency ratios measure how efficient the business uses its assets to generate
sales.
⚫ The most widely used efficiency ratio for planning purposes is inventory turnover ratio.

Inventory turnover (or stock turnover) measures the number of times inventories have been
converted into sales and indicates how liquid the inventory is. All other things being equal,
the higher the turnover figure, the more liquid the business is.

⚫ This ratio divides the cost of sales (or cost of goods sold) by the average value of
inventory. The average value of inventory is derived by adding the opening and closing
balance of and dividing the total by two.

Profitability Ratios
◆ Profitability ratios are important indicators of the business’ financial performance.
Investors will particularly be interested in these ratios since they measure the
performance and growth potential of the business.

Page | 63
◆ Some of the commonly used profitability ratios are gross profit margin, net profit margin,
return on assets and return on equity. Gross profit margin give a good indication of
financial health of the business. Without an adequate gross margin, the business will be
unable to pay its operating and other expenses.
Gross profit margin is calculated by dividing the business gross income by sales.

Page | 64
TABLE 5 : Financial Ratio Analysis

F&E DELIVERY
FINANCIAL PERFORMANCE
Year 1 Year 2 Year 3

PROFITABILITY
Sales 866,448 1,126,382 1,464,297
Gross Profit
Profit Before Tax 22,464 202,985 362,344
Profit After Tax 22,464 202,985 362,344
Accumulated Profit 22,464 225,449 587,793

LIQUIDITY
Total Cash Inflow 1,098,724 1,126,382 1,464,297
Total Cash Outflow 946,979 932,592 1,111,149
Surplus (Deficit) 151,745 193,790 353,148
Accumulated Cash 151,745 345,535 698,683

SAFETY
Owners' Equity 617,464 820,449 1,182,793
Fixed Assets 573,040 554,780 536,520
Current Assets 151,745 345,535 698,683
Long Term Liabilities 109,820 82,365 54,910
Current Liabilities 0 0 0

FINANCIAL RATIOS
Profitability
Return on Sales 3% 18% 25%
Return on Equity 4% 25% 31%
Return on Investment 3% 22% 29%
Liquidity
Current Ratio #DIV/0! #DIV/0! #DIV/0!
Quick Ratio (Acid Test) #DIV/0! #DIV/0! #DIV/0!

Safety
Debt to Equity Ratio 0.2 0.1 0.0

BREAK-EVEN ANALYSIS
Break-Even Point (Sales) 809,784 885,777 1,056,809
Break-Even Point (%) 93% 79% 72%

Page | 65
Graph 1: Return on Sales

Graph 2; Return on Equity

Page | 66
Graph 3: Return on Investment

Graph 4: Dept to Equity Ratio

Page | 67
CHAPTER 6: BUSINESS MODEL
CANVAS (BMC)

Page | 68
6.0 Business Model Canvas

KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITION CUSTOMER CUSTOMER SEGMENTS

• Network of local • Customers and • Convenience RELATIONSHIP • People who want to
restaurants riders • Competitive • Discounts and purchase food from
• Delivery riders • Website and online • Offer job • promotions restaurants
ads opportunities • Rating and feedback • online.
• Social media • User friendly • system • Household
• Networking • Customization • Teenagers
• Customer support • Working class
chat people
• Social media • Restaurants owners
KEY RESOURCES CHANNELS that want to reach
• Location • websites bigger
• competitive price • Social media • audience
• Riders • Business card
• Banner
• Live chat
• Restaurants
COST STRUCTURE REVENUE STREAM(S)
• Website for development • Bag
• Marketing and advertising • Commission on orders
• Salary • Advertisement fees-The company charges third parties a fee to
• Cost of operation (renovation, decoration and maintenance) advertise their product or service on its website and mobile app.

Page | 69
CHAPTER 7: CONCLUSION

Page | 70
7.0 Conclusion
In conclusion, after doing thorough analysis about our business, we are confident that
our business could generate high income after 3 years operation. Besides that, with good
marketing management, it could enhance our popularity of out company so that many people
around petaling jaya will use our convenience service food delivery. Furthermore in order to
keep our business track straight we also will improve our service from month to month. We
will do complete postmo-term to identify what is the problem that come up and we will discuss
to solve it so as it will not happen again next time. With these method, we could arcieve our
annual sales which is 30% increase each year.
After analyse by the financial manager, he stated that our profit company are capable
enough to pay our monthly loan for the next 3 years because our return of sales showed
increasing 10% each year. Thus it showed our company can utilized the payment monthly
without any problem. Furthermore, based on the financial report we could see after 3 years
our dept of equity could decreasing until 0.0. This means our company are stable enugh to
operate without any risk.
In a nutshell, F&E Food Delivery Company had showed a well and thorough plan to
operate as soon as possible. As pioneer of this company we believed our company can
arcieved our vision and mission in the next 3 years. Thus we hope our company could become
one of the most convenience service provider food delivery in Selangor. Lastly, during the
process of completing business plan for ENT300 had thought us how to plan well our business
before starting any business.

Page | 71
CHAPTER 8: APPENDICES

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8.0 Appendices
F&E Food Delivery
Diploma in Chemical Engineering
Universiti Teknologi MARA (UiTM)
Permatang Pauh
PULAU PINANG
_____________________________________________________________________
17th. September 2018

Madam Shaira

Lecturer of Fundamental of Entrepreneurship (ENT300)

Faculty of Business and Management
UiTM Pulau Pinang

Dear Madam,

SUBMISSION OF BUSINESS PLAN

Referring to the matter below our group would like to submit our business plan for your kind
to evaluate and further action. With regards of opening our new company that provide food
delivery in Petaling Jaya. Our company name is F&E Food and Delivery. Our business is
partnership setup with a following business partner and address.

Partners:
1. NUR HANIS AMIRAH BINTI MOHD ZAMRI (2019643806)
2. Syed MUHAMMAD ADLI KHAN BIN SYED LEYAR ALI KHAN (2019812468)
3. AZMAN ARIFF BIN AHMAD MUSTAPHA (2019295988)
4. MUHAMMAD MUIZZUDDIN BIN ABD RAZAK (2019409168)

We have tried our very best to prepare this business plan in according to the subject
requirements. This working paper is our group efforts and all experience gained are valuable
lessons for the entire group members.

We hope that our business plan will satisfy your requirement for this subject (ENT 300). We
also hope that our business plan can provide some benefits to the other people as a
reference material for the future

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Sincerely

Name: NUR HANIS AMIRAH Name: MUHAMMAD SYED ADLI

BIN MOHD ZAMRI BIN SYED LEYAR ALI KHAN
(General Manager) (Marketing Manager)

Name: AZMAN ARIFF BIN Name: MUHAMMAD MUIZZIDDIN BIN

AHMAD MUSTAPHA ABD RAZAK
(Operation Manager) (Financial Manager)

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 PARTNERSHIP AGREEMENT

This Partnership Agreement is made on “1 January 2018” between “NAME OF GROUP

MEMBER”, “NAME OF GROUP MEMBER”,“NAME OF GROUP MEMBER” and “NAME OF
GROUP MEMBER”.

1. Name and Business

The parties hereby form a partnership under the name of “Wind’s Tote Bag” to produce
“tote bag”.The location of the business shall be at “Sunway Carnival Mall, 3068, Jalan
Todak, Pusat Bandar Seberang Jaya, Seberang Jaya, 13700 Perai, Pulau Pinang”.

2. Term

The partnership shall begin on “1January 2018”, and shall continue until every partners
agreed to terminate this partnership agreement.

3. Capital

The capital of the partnership shall be contributed in cash by the partners as follows:

o A separate capital account shall be maintained for each partner.

o Neither partner shall withdraw any part of their capital account.
o Upon the demand of either partner, the capital accounts of the partners shall be
maintained at all times in the proportions in which the partners share in the profits
and losses of the partnership.The capital contribution to the partnership is stated
as follows:

Name Position Capital Percentage

Contribution Contribution
(RM) (%)
NUR HANIS AMIRAH Administration RM23,750.00 25%
Manager
SYED MUHAMMAD ADLI Marketing RM23,750.00 25%
KHAN Manager

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 AZMAN ARIFF Operation RM23,750.00 25%
Manager
MUHAMMAD Financial Manager RM23,750.00 25%
MUIZZUDDIN
TOTAL RM 95,000.00 100%

4. Profit and Loss

The net profit of the partnership shall be divided equally between the partners and the
net losses shall be borne equally by them. A separate income account shall be
maintained for each partner. Partnership profits and losses shall be charged or credited
to the separate income account of each partner. If a partner has no credit balance in
their income account, losses shall be charged to their capital account.

5. Salaries and Withdrawals

Partners shall receive any salary for services rendered to the partnership. Each partner
may, from time to time, withdraw the credit balance in their income account.

6. Interest

No interest shall be paid on the initial contributions to the capital of the partnership or on
any subsequent contributions of capital.

7. Management Duties and Restrictions

The partners shall have equal rights in the management of the partnership business,
and each partner shall devote their entire time to the conduct of the business. Without
the consent of the other partner neither partner shall on behalf of the partnership borrow
or lend money, or make, deliver, or accept any commercial paper, or execute any
mortgage, security agreement, bond, or lease, or purchase or contract to purchase, or
sell or contract to sell any property for or of the partnership other than the type of property
bought and sold in the regular course of its business.

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8. Banking

All funds of the partnership shall be deposited in its name in such checking account or
accounts as shall be designated by the partners. All withdrawals therefrom are to be
made upon checks signed by either partner.

9. Books

The partnership books shall be maintained at the principal office of the partnership, and
each partner shall at all times have access to the books. The books shall be kept on a
fiscal year basis, and shall be closed and balanced at the end of each fiscal year. An
audit shall be made as of the closing date.

10. Voluntary Termination

The partnership may be dissolved at any time by agreement of the partners, in which
event the partners shall proceed with reasonable promptness to liquidate the business
of the partnership.

11. Death

Upon the death of either partner, the surviving partner shall have the right either to
purchase the interest of the decedent in the partnership or to terminate and liquidate the
partnership business.

12. Arbitration

Any controversy or claim arising out of or relating to this Agreement, or the breach
hereof, shall be settled by arbitration in accordance with the rules. In witness whereof
the parties have signed this Agreement.

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Executed this on 22 December of 2017 in “Seberang Jaya, Pulau Pinang”, each partner
agreed and signed this agreement to show their commitment to this partnership.

(MARKETING MANAGER)
NURHANIS AMIRAH BINTI
008227-02-0414

(MARKETING MANAGER)
SYED MUHAMMAD ADLI KHAN BIN SYED LEYAR ALI KHAN
000526-14-0439

(OPERATION MANAGER)
AZMAN ARIFF BIN AHMAD MUSTAPHA
010202-05-0073

(FINANCIAL MANAGER)
MUHAMMAD MUIZZUDDIN BI ABD RAZAK
010413-07-0357

Witnessed by:

__________________________
PUAN SHAIRA ISMAIL

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ADMIN. PLAN (ADDITIONAL INFO TO ADD UP)

COMPENSATION AND BENEFITS

➢ Employment Act 1955
Employment law in Malaysia is generally governed by the Employment Act 1955
(“Employment Act”). The Employment Act sets out certain minimum benefits that are
afforded to applicable employees. For applicable employees – any clause in an
employment contract that purports to offer less favourable benefits than those set out
in the Employment Act, shall be void and replaced with the minimum benefits in the
Employment Act.
The protection under the Employment Act only applies to these categories of
employees:
Employees whose monthly salary does not exceed RM2,000
Employees who are engaged in manual labour, regardless of salary
Employees engaged in the operation or maintenance of mechanically propelled vehicle
Employees who supervise or oversees other employees engaged in manual labour
Employees engaged in any capacity on a vessel (subject to certain other conditions)

1). Rest day

Every employee shall be allowed in each week a rest day of one whole day
as may. be determined from time to time by the employer.

2). Holidays

Every employee shall be entitled to a paid holiday at his ordinary rate of pay
on ten gazetted public holidays in any one calendar year, four of which shall
be--

(a) the National Day;

(b) the Birthday of the Yang di-Pertuan Agong;
(c) the Birthday of the Ruler or the Yang di-Pertua Negeri, as the case may
be, of the State in which the employee wholly or mainly works under his

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 contract of service, or the Federal Territory Day, if the employee wholly or
mainly works in the Federal Territory; and
(d) the Workers' Day:
Provided that if any of the said ten gazetted public holidays falls on a rest day
the working day following immediately thereafter shall be a paid holiday in
substitution therefor

3). Annual leave

An employee shall be entitled to paid annual leave of--

(a) eight days for every twelve months of continuous service with the same
employer if he has been employed by that employer for a period of less than
two years;
(b) twelve days for every twelve months of continuous service with the same
employer if he has been employed by that employer for a period of two years
or more but less than five years; and
(c) sixteen days for every twelve months of continuous service with the same
employer if he has been employed by that employer for a period of five years
or more, and if he has not completed twelve months of continuous service with
the same employer during the year in which his contract of service terminates,
his entitlement to paid annual leave shall be in direct proportion to the number
of completed months of service:

4). Sick leave

An employee shall, after examination at the expense of the employer --

(a) by a registered medical practitioner duly appointed by the employer; or
(b) if no such medical practitioner is appointed or, if having regard to the nature
or circumstances of the illness, the services of the medical practitioner so
appointed are not obtainable within a reasonable time or distance, by any other
registered medical practitioner or by a medical officer,
be entitled to paid sick leave, --
(aa) where no hospitalisation is necessary, --
(i) of fourteen days in the aggregate in each calendar year if the employee has
been employed for less than two years;

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 (ii) of eighteen days in the aggregate in each calendar year if the employee has
been employed for two years or more but less than five years;
(iii) of twenty-two days in the aggregate in each calendar year if the employee
has been employed for five years or more; or
(bb) of sixty days in the aggregate in each calendar year if hospitalisation is
necessary, as may be certified by such registered medical practitioner or
medical officer:
Provided that the total number of days of paid sick leave in a calendar year
which an employee is entitled to under this section shall be sixty days in the
aggregate;
An employee shall also be entitled to paid sick leave under paragraphs (aa)
and (bb) of subsection (1) after examination by a dental surgeon as defined in
the Dental Act 1971:

5). Maternity leave

Every female employee shall be entitled to maternity leave for a period of not
less than sixty consecutive days.

A female employee shall not be entitled to any maternity allowance if at the

time of her confinement she has five or more surviving children.

6). Overtime

For any overtime work carried out in excess of the normal hours of work, the
employee shall be paid at a rate not less than one and half times his hourly rate
of pay irrespective of the basis on which his rate of pay is fixed. In this section
"overtime" means the number of hours of work carried out in excess of the
normal hours of work per day. Provided that if any work is carried out after the
spread over period of ten hours, the whole period beginning from the time that
the said spread over period ends up to the time that the employee ceases work
for the day shall be deemed to be overtime.

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Any other terms and conditions are:-

1). Paternity Leave

Male employees are eligible to 2 working days leave for the birth of their own
child up to 5 surviving child.

2). Marriage Leave

Employees are entitled for 5 days leave for first legal marriage per employment.

3). Compassionate Leave

Every employee is entitled for 3 consecutive working days on the death of their
immediate family member.

4). Bonus

The bonus will be granted to employees at a rate of 30 % of the monthly salaries

depends on the company’s performance.

5). The Annual Increment

Employees will be paid with an annual increment based on the individual

performance at a rate of 5% to 30% per annum. Those who fail to achieve the
performance standard will not be granted with an annual increment.

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➢ Social Security Organization (SOCSO)
The main function of SOCSO is to provide social security protection to employees and
their dependants through the Employment Injury Scheme and the Invalidity Scheme.
The Employment Injury Scheme provides protection to employees against
occupational injuries including occupational diseases and commuting accidents. The
Invalidity Scheme provides 24-hour protection to employees against invalidity or death
due to any cause outside working hours and not related to employment. Both schemes
provide cash benefits to employees and their dependants in the event of unforeseen
incidents, in addition to providing medical treatment, physical rehabilitation or
vocational training. SOCSO also conducts implements accident prevention activities
through occupational safety and health awareness programmes among employees
and employers. The rate of contribution is 1.25% per month from the insured salary
option. Monthly contribution is subject to the ceiling of the insured wage of RM4,000.00
per month.

➢ Employer Provident Fund (EPF)

As an employer, the responsibilities include paying EPF contributions in respect of any
person engaged to work under a Contract of Service or Apprenticeship. Subject to the
provisions of section 52, every employee and every employer of a person who is an
employee within the meaning of this Act shall be liable to pay monthly contributions on
the amount of wages at the rate respectively set out in the Third Schedule (Section
43(1), EPF Act 1991).

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