TABLE OF CONTENTS

EXECUTIVE SUMMARY

a. Product Offering pg.1

b. Market Profile pg.1
c. Management Team pg.2
d. Financial Status (Revenue & Expected Return) pg.2
1.0 COMPANY PROFILE

1.1 Name of Company, Logo, and Company Contact pg.3

1.2 Legal Business Structure pg.6
1.3 Organizational Chart pg.7
1.4 Product Description pg.8
1.5 Product Specification and Details pg.9
1.6 List of Materials Used pg.10
1.7 Steps in Creating the Product pg.12

2.0 ADMINISTRATION, HUMAN RESOURCE PLAN

2.1 Vision, Mission, Objective & Motto pg.15

2.2 Personal Particular Partners pg.16
2.3 Schedule of Tasks and Responsibility pg.22
2.4 Manpower Planning pg.24
2.5 Remuneration Plan pg.25
2.6 Partnership Agreement pg.27

3.0 OPERATION PLAN

3.1 Operation Process Flow Chart pg.30

3.2 Operation Layout Plan pg.32
3.3 Production Schedule / Planning pg.33
3.4 Materials Requirements per Month pg.34
3.5 List of Machineries and Equipment pg.37
4.0 MARKETING PLAN

4.1 Marketing Objectives pg.39

4.2 Target Market pg.39
4.3 Marketing Strategy pg.40
a. Product
b. Price
c. Place
d. Promotion
pg.46
4.4 Marketing Budget
pg.47
4.5 Sales Forecast

5.0 FINANCIAL PLAN

5.1 Project Implementation Cost Schedule pg.48

5.2 Sources of Funds Schedule pg.49
5.3 Profit and Lost Statement pg.50
5.4 Break-Even Analysis pg.51

APPENDIX A: POSTER
APPENDIX B: BROCHURE
APPENDIX C: COMPANY NAME CARD
APPENDIX D: CALCULATION (5.0 FINANCIAL PLAN)
APPENDIX E: BUSINESS PRESENTATION SLIDES
APPENDIX F: GROUP PHOTO
APPENDIX G: PROTOTYPE PHOTO
 5.0 FINANCIAL PLAN

5.1 Project Implementation Cost Schedule

PAY ONCE PAY FOR 3 TOTAL PAY

ITEMS ONLY MONTHS FOR 1 YEAR
(RM) (RM) (RM)
Capital Expenditure
Office Rental 15,000.00 - 15,000.00
Office Rental admin - - 30,000.00
Factory Machine and Equipment - - 50,000.00
Monthly instalment for vehicle (Delivery/Transportation) - - 3,120.00
Office Equipment 10,000.00 - 10,000.00
Office Furniture 5,000.00 - 5,000.00
Vehicle (Down Payment) 5,000.00 - 5,000.00
35,000.00 0.00 118,120.00
Marketing Expenditures
Advertising (Posters & Brochure) - - 1,500.00
Social Media and Website - 1,350.00 5,400.00
Logo Design 250.00 - 250.00
Signage 1,000.00 - 1,000.00
Booth - 11,250.00 45,000.00
1,250.00 12,600.00 53,150.00
Administrative Expenditures
Salary - - 473,244.00
Office Tools & Supplier - - 5,000.00
Prepaid Insurance - - 10,000.00
Security System Installation 1,500.00 - 1,500.00
1,500.00 0.00 489,744.00
Production Expenditure
Utilities (Electricity/ Water/ WIFI) - - 15,000.00
Product Cost (Direct Material) - - 144,000.00
Packaging - - 13,200.00
0.00 0.00 172,200.00
Miscellaneous/Others
Building Improvements/ Remodelling 2,500.00 - 2,500.00
Business Licenses/Permits 750.00 - 750.00
3,250.00 0.00 3,250.00

Total (100%) 41,000.00 12,600.00 836,464.00

pg. 1
Reserve for Contingencies (10%) 83,646.40
Total Implementation Cost (110%) 920,110.40

The project implementation cost schedule considers and computes the many fixed and variable
expenses, including the first three months of the business's operation, that must be paid. For a total
implementation cost of RM 920,110.40, which is required to operate the business for the first three
months, the three months' expenses and one-time expenses were combined.

5.2 Sources of Funds Schedule

Percentage of
Amount
Owner Funding Ownership
(RM)
(%)
AK MUHD TAQIUDDIN PG HJ MENUDIN 200,000.00 40
WONG SEOW YIN 75,000.00 15
ALY MAHMOUD 50,000.00 10
THEIRRY SUVANPRATUMS A/L VILHAI 75,000.00 15
MUHAMAD HARITH DANIAL BIN JAILANI 100,000.00 20
Total Investment 500,000.00 100
Loan
Bank Loan 420,110.40
Total Loan 420,110.40
Total Funding 920,110.40

There are 5 shareholders in Digital World Sdn. Bhd. They each contributed a total of RM 500,000.00
to the venture. It will be necessary to obtain a bank loan to cover the expenditures' cost, as determined
by the implementation cost schedule. Therefore, RM 420,110.40 for a bank loan is required to cover
the overall total project implementation costs of RM 920,110.40. The remaining funds will be
utilized to offset any losses incurred before reaching the break-even point.

pg. 2
5.3 Profit and Loss Statement (2 Years)
Statement of Profit and Loss for the year ended 31st January: Increase 5%
36,000 Units 37,800 Units
2024 2025
(RM) (RM)
Sales 1,440,000.00 1,512,000.00
(-) Cost of Goods Sold
Product Cost (Direct Material) 144,000.00 151,200.00
Salary 473,244.00 580,368.00
Packaging 13,200.00 13,860.00
Gross Profit 809,556.00 766,572.00
(-) Expenses
Marketing Expenses 53,150.00 55,807.50
Miscellaneous/Others 3,250.00 3,412.50
Utilities 15,000.00 15,750.00
Office Tools & Supplier 3,000.00 3,150.00
Insurance 10,000.00 10,500.00
Security System Installation 1,500.00 1,575.00
Office Rental 30,000.00 31,500.00
Monthly instalment for vehicle (Delivery/Transportation) 3,120.00 3,276.00
Payment for business loan 420,110.40 -

Total Expenses 539,130.40 124,972.00

Net Profit Before Tax 270,425.60 641,600.00
(-) Tax 64,902.14 153,984.00
Net Profit After Tax 205,523.46 487,616.00

The Profit and Loss Statement for the first two years displays the predicted values of
revenues, expenses, and net profit. Both RM 1,440,000.00 and RM 1,512,000.00 were the sales
proceeds of the commodities in 2024 and 2025 years, respectively.

The total expenses show the total costs of expenditure for the past two years. The total expenses
for 2024 and 2025 years were both RM 539,130.40 and RM 124,972.00. Due to the increase
of production amount in the year 2025, the total expenses increasing around 5% from year 2024.

pg. 3
 The statement clearly displays the net profit before and after taxes for the two successive years. For
both years, the net profit after taxes were RM 205,523.46 and RM 487,616.00, respectively.

5.4 Break Even Analysis

BREAK-EVEN ANALYSIS
3,500,000

3,000,000
Break Even (Units):
34,105
2,500,000 Break Even (Revenue):
RM 1,214,200.00
2,000,000
REVENUE (RM)

1,500,000

1,000,000

500,000

250,000

125,000

0
0 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000
NUMBER OF UNITS

Revenue Fixed Cost Total Cost

(RM) (RM) (RM)

pg. 4
Break-even analysis is a method used to ascertain the quantity of products that must be sold to
offset the entire cost of running a business, whether on a monthly or yearly basis. This break-
even analysis table is computed by considering fixed costs, the variable cost per unit of sales,
and the revenue generated per unit of sales. As indicated by the analysis above, Digital World
Sdn. Bhd. is projected to reach the break-even point by selling 34,105 units of its products, a
milestone anticipated to be achieved in December month of year 2024.

pg. 5
 APPENDIX D:
CALCULATION
(5.0 FINANCIAL PLAN)
 Profit and Loss Statement (Calculations)

Business Loan Instalment = [(5% x 10 years x RM 420,110.40) + RM 420,110.40] / 10 years

= RM 63,016.56

A bank loan of RM 420,110.40 is taken to meet expenses of the first year in the company. The bank
loan has a 5% interest rate and will be paid off over the next ten years in monthly instalments. A
yearly fee of RM 63,016.56 is due to the bank.

Tax Rate:

• Profit before tax for year 2024: RM 270,425.60

Tax: RM 500,000.00 x 18% = RM 90,000.00
RM 270,425.60 x 24% = RM 64,902.14
Total of Tax: RM 809,556.00 (Gross Profit) - RM 539,130.40 (Total Expenses)
= RM 270,425.60

• Profit before tax for year 2025: RM 641,600.00

Tax: RM 500,000.00 x 18% = RM 90,000.00
RM 641,600.00 x 24% = RM 153,984.00
Total of Tax: RM 766,572.00 (Gross Profit) - RM 124,972.00 (Total Expenses)
= RM 641,600.00

Company with paid up capital not more than RM million:

On first RM 500,000.00 18%
Subsequent Balance 24%
Company with paid up capital more than RM 2.5 million: 24%

Year 1: Profit Before Tax (RM) 270,425.60

Total Tax (RM) 64,902.14
 Year 2: Profit Before Tax (RM) 641,600.00
Total Tax (RM) 153,984.00
TAX RATE

Due to the paid-up capital of net profit before tax projections for both years 2024 and 2025 which is
below RM 2.5 million, a specific tax structure is applied. In both years, there is an 18 percent tax rate
for the initial RM 500,000 of net profit and a 24 percent rate for any amount exceeding that.
Consequently, the tax for the first year’s amounts to RM 64,902.14, and for the second year, it totals
RM 153,984.00
Fixed Cost (Per Year)

Fixed Cost (Per Year)

Description Cost (RM)
Fixed Assets Costs
Office Rental 15,000.00
Factory Machine and Equipment 50,000.00
Office Equipment 10,000.00
Office Furniture 5,000.00
Vehicle (Down Payment) 5,000.00
Total Assets Costs 85,000.00

Fixed Costs
Marketing Expenses 53,150.00
Salary 473,244.00
Insurance 10,000.00
Monthly instalment for vehicle (Delivery/Transportation) 3,120.00
Payment for business loan 420,110.40
Total Fixed Costs 959,624.40

TOTAL 1,044,624.40

Variable Cost (Per Year)

Variable Cost (Per Year)

Description Cost (RM)

Variable Costs
Product Cost (Direct Material) 144,000.00
Packaging 13,200.00

Total Variable Costs 157,200.00

Break Even Point

Total Revenue (TR) = Selling Price x Quantity (Q)

= [Promotion Selling Price: RM 30.00 x 3,000 units x 5 months]
+ [Official Selling Price: RM 40.00 x 3,000 units x 7 months]
= RM 1,290,000.00

Total Cost (TC) = Total Fixed Cost (TFC) + Total Variable Cost (TVC)
= RM 1,044,624.40 + RM 157,200.00
= RM 1,201,824.40

Total Variable Cost

Variable Cost Per Unit = Production per year (Unit Sale)

RM 157,200.00
=
36,000 Units

= RM 4.37

Average Selling price per unit = (RM 30.00 + RM 40.00) / 2

= RM 35.00

Remarks: Average Selling Price takes consideration of the promotion selling prices during sales
campaigns.

Contribution Per Unit = Average Selling price – Variable cost

= RM 35.00 – RM 4.37
= RM 30.63

Fixed Cost
Break-Even Point = Contribution Per Unit

RM 1,044,624.40
= RM 30.63 = 34,105 Units
 Break−Even units
Break-Even Month = 12 months 𝑥 Total selling units in 2024

34,105 Units
= 12 months 𝑥
36,000 Units
= 11 Months

*Note: The break-even point is approximately in 34,105 units of production selling and it will
occur in December month of year 2024 with the total selling unit of 36,000 units.