ENT 300

FUNDAMENTALS OF
ENTREPRENEURSHIP
ELEGLOW ENTERPRISE
INTRODUCTION
Industry Profile
 The most important thing to realize about the scarf
industry is that it changes constantly.
 Trends and styles come and go with the seasons, so it is
necessary for those working in the industry to be
adaptable and ready adjust to the latest market
demand.
 If it's design that you're interested in there are a few
things to consider.
 An entrepreneur must also have the ability to predict
and understand what consumers want even if that
differs from what he or she thinks is fashionable.
FACTORS IN SELECTIONG THE
PROPOSSED BUSINESS
 Availability of Resources

 Market Demands

 Current Business Trends

 Good Location

 Capital or Fund
PURPOSE OF
THE BUSINESS
PLAN
PURPOSE OF THE BUSINESS PLAN
 To give us a chance to view and evaluate the business

 To make research and evaluate whether the business are having a profit or
loss.

 To venture capitalist, investor and banker in order to raise capital and

obtain support for the venture

 As guidelines of routine management in the business

 To give management an opportunity for entrepreneur to assess, view &

appreciate the business venture objectively, critically & practically

 To evaluate the project viability and growth potential

 COMPANY
BACKGROUND
MAIN ACTIVITY

Our company main activity is providing and selling fashion

scarf. Our scarf have an exclusively “Glow in the Dark”
effect.
LOCATION OF THE BUSINESS

 Physical Location

Our physical company location is located at Kelana

Centre Point which is a great location that can help
improve our sales and productivity.
 Map of the location
ORGANIZATION
PLAN
COMPANY VISION, MISSION AND OBJECTIVE

 VISION
To be a famous fashion of scarf producer in the region and provides
the needs of the global “Muslimah” community

 MISSION
To be a market leader in the production and distribution of fashion
scarf product in Malaysia within five years and in Asia within the 15
years

 OBJECTIVE
To establish and operate an international standard production
needed for fashion scarf product in Malaysia
ORGANIZATION CHART
General Manager / Administration
Muhammad Abdullah

Marketing Manager Operating Manager Financial Manager

Nabila binti Awang Nur Illya Syaheera bt Nur Amiza Sahira
Ahmad Kafli Mat Rodzi binti Mad Zali

Worker

Deliveryman
ORGANIZATION BUDGET
Monthly
Fixed Assets Other
Item Expenses
Expenses Expenses
(RM)

Furniture and
3000
Fittings

Salaries 3200

EPF
384
Contribution

SOCSO 80
Telephone
130
Deposit
Total 3000 3664 130
MARKETING
PLAN
PRODUCT DESRIPTION
 Our company provide scarf for Muslims women. We bring the
freshest scarf prints and “Glow in the Dark” designs.

 Our scarfs are designed exclusively by our company because

of the “Glow in the Dark” feature that we add.

 The most common fabrics we select include polyester and silk

to ensure the best and most comfortable fit possible.

 The finishes we carry most often are chiffon, satin and crepe
and most importantly our exclusive “Glow in the Dark”
feature.
TARGET MARKET
Demographic segmentation

 We have decided to open our first branch in Kelana Centre Point, Petaling
Jaya.

 Our chosen location is basically a large town with a large number of

populations and it shows huge potential to be developed ours product
more.

 Our companies is also located near others famous building, an educational

institution and large portion of population, which is our primary target since
most of our customer will consist of residential because scarf are always be
the target for career woman to exchange their scarf on going to works

 Our secondary target will be the teenager that lives around Kelana Jaya
city. We mainly attract the teenagers that love in unique style of scarf.
MARKETING STRATERGY
 Product

Brand

Fioxa is a brand’s named of our product.

Our company provide uncommon scarf which is ‘Glow in The Dark’.

In addition, our brand motto ‘Love it, Grab it, Wear it’ is an attraction
because it will make people what the difference between our scarf
and the other scarf in market.
Quality

Quality of our product is definitely suitable with our business.

As we convince our customer due to our quality of the product by maintaining

the light of the scarf.

We also express elegance and sophistication.

In addition to this, the material are so soft and pleasant to wear.

Nothing can compare with the smoothness and also keep us cool and warm
in any situation and seasons
Design

A sophisticated design is the sign of luxury scarf.

It means that the brands has invested time in creating something really
unique and uncommon scarf.

We are not always aware of it but the beauty of a scarf comes both from its
design and from the number and the subtlety of its colours.

A plain scarf or a scarf with a very few colours is fine if you like it this way
Packaging

 We provide a nice and elegance packaging for our customer.

 A special box if the customer buy more than three scarf meanwhile for the
customer only one, he or she will get plastic bag.
 At the plastic bag and the box we create an elegance and simple design
that will attract customer’s interest.
 At the bag and plastic bag, we put our number, logo, and email.
 Our company’s had choose pink and black as a theme for elegance and
simple design to colour our packaging.
Labelling

Labelling performs several functions such as identifying, grading, describing or

even promoting the product.

Our labelling product is about the name of our company Eleglow Enterprise.

Our motto ‘Love it, Grab it, Wear it’ also will be display in our label.

We put the fabric and material as a guidance to customer to avoid they wash
the scarves too rough.
 Price (Cost-based pricing)

TYPE OF PRODUCT PRICE OF SCARF

Fareeda RM 200

Aidijuma RM 100

Ariani RM 150

EleGlow Price = cost per unit + mark up

= RM 145 + (24% x RM145)
= RM 179.80 @ RM 180
 Distribution

Our strategies are involved many areas which are through the
wholesalers then being distributed to the retailers and finally
being distributed directly to the customers.

Direct to Consumer

EleGlow Enterprise Customer

We sell and manufactured our products which are scarf directly

to the customer which are the one who pays to consume our
product based on their satisfying needed and wants toward the
scarf
Direct to Retailer

EleGlow Enterprise Retailer Customer

We had manufactured our scarf to the one intermediary level, the

retailers which are a business or person that sells goods to the
consumer.

So that we can expands to coverage by increasing the exposure and

capturing the market and boosting our brand name within short time.

The selection of number and location widely depend on our coverage

areas intended by our manufacturer EleGlow Enterprise through
enlarge our product to the Malaysian market.
 Promotion

Banner

We will put our banner on the front of the company office and alongside of
the main road of Jalan SS 7/19 which will allow the pedestrian to see our
banner. The cost of the banner is RM50.00 each. The size of the banner is 4 X
20 feet.
Flyers

We will distribute a flyers throughout the Kelana Centre Point offices and
throughout the residence area. The flyers will be cost at RM50.00 per bundle.
Each bundle will consist of 1000 of papers.
Business Card

We will give our business card to our customer and supplier that come to
make business with us. The cost of the business card is RM70.00 per pack
Signboard

We will put a company signboard on the front of the company office. The
signboard will be cost at RM3000.00
Flyers inside newspaper

We will put our flyers inside the newspaper such as Berita Harian which will cost
RM 250.00. The total of flyers we will put inside the newspaper is 5000 pieces.

Social Media

We will advertise our product on social media by using internet on websites,

email and social network such as Facebook and Twitter.
MARKETING BUDGET
Item Fixed Asset Monthly Other Expenses
Expenses (RM) Expenses (RM) (RM)
Laptop 900
Signboard 3000
Salary 1500
Wi-Fi 130
EPF 180
SOCSO 37.50
Flyer under 250
Newspaper
Deposit Wi-Fi 100
Banner 65
Flyers 50
Business Card 70
OPERATION
PLAN
PROCESS PLANNING
 Activity Flow Chart
Delegate the fabrics into the storage areas, place those fabrics based on gred
arrangement.

In the storage area, check the quality of the fabrics and separate the fabrics.

Drawing area to create the design and bring to measurement area then bring to
cutting area.

Cut the fabrics based on measurement required.

Transfer the fabrics from cutting area to sewing machines area for sewing process.

Shredded and put the fabrics into pieces in the sewing machine for lining process of
every edges of the scarf.

After sewing process, fabric or knitted material used for making scarf.

Next, transfer fabrics colouring area for ultimate step of glowing in the dark scarf.

Last step is moved the fabrics from colouring area to drying area process for
complete look of scarf. The total processed to complete dry within 24 hours.
 Process Flow Chart

Purchasing of scarf materials.

Storage the fabric and scarf material.

Arrange and place the scarf accordingly.

Draw the fabric based on measurement.

Cutting the materials to measure size.

Quality inspection.

Transport the materials that have been to tailor’s table.

Sewing by tailors.

Coloring.

Transfer to the drying area.

Dry the scarf.

Quality inspection.

Packaging the scarf neatly.

Storage before shipping out.

OPERATION LAYOUT
OPERATION BUDGET
Item Fixed Assets Monthly Expenses Other Expenses
Expenses (RM) (RM) (RM)
Machine and 2400
equipment
Van 22000
Shop rental 6000
Utilities 1280
Insurance 900
Salary 3300
EPF 396
Oil and gas 800
SOCSO 82.50
Shop Deposit 1000
Maintenance 250
License 130
Road tax 90
Overhead Expenses 158
24400 12, 785.50 1628
FINANCIAL
PLAN
PROJECT IMPLEMENTATION COST
SCHEDULE
RM RM RM
Capital expenditure:
Marketing:
Signboard 3000
Laptop 900 3900

Operation:
Sewing machine (2) 2400
Van 22 000 24400

Administration:
Furniture and fittings 3000 3000

Sub-total 31 300
Working capital (1 month):
Marketing:
Salary for marketing manager (EPF+SOCSO) 1717.50
Flyers under Newspaper 250
Wi-Fi 130 2097.50

Operation:
Salary for Operation Manager (EPF+SOCSO) 1717.50
Salary for Operational Assistant (EPF+SOCSO) 1030.50
Salary for driver (EPF+SOCSO) 1030.50 3778.50
Shop rental 6000
Utilities (water and electricity0 1280
Insurance 900
Toll and mileage 800 8980

Administration:
Salary for General manager (EPF+SOCSO) 1946.50
Salary for Financial manager (EPF+SOCSO) 1717.50 3664

Sub-total 18520
Other expenditure:
Marketing:
Banner 65
Flyers 50
Business cards 70 185

Operation:
Maintenance 250
License 130
Road tax 90
Overhead expenses 158 628

Deposits:
Wi-Fi 100
Shop 1000
Utilities ( water and electricity) 640
Telephone 130 1870

Sub-total 2683

Grand total 52 503

Add:
Contingency cost (10%) 5250.30

TOTAL PROJECT IMPLEMENTATION COST

57 753.30
SOURCE OF FINANCING
RM RM

Internal Sources :
Cash ( 4 partners )
- Muhammad bin Abdullah 3 938.32
- Nabila binti Awang Ahmad Kafli 3 938.32
- Nur Illya Syaheera binti Mat Rodzi 3938.32
- Nur Amiza Sahira binti Madzali 3938.32
15 753.30
Assets :
- Van 22 000 22 000

Sub-total 37 753.30

External Sources :

Term loan 20 000

Sub-total 20 000

Other Sources :
-
PRO FORMA CASH FLOW STATEMENT
(ANNUALLY ONLY) FOR 3 CONSECUTIVE
YEARS
Year 1 Year 2 Year 3
( 2% ) ( 4% )
Cash inflow : -
Equity Contribution – Cash ( 4 partners ) 15 753.30 - -

Term Loan 20 000 - -

Sales 2 880 000 2 937 600 3 055 104
Total Cash Inflow : 2 915 753.30 2 937 600 3 055 104
Cash Outflow :
Marketing Expenditure :
Salary for Marketing Manager 20 610 21 022.20 21 863.10
Flyer under Newspaper 3 000 3 060 3182.40
Wi-Fi 1 560 1 591.20 1 654.80
Others Marketing Expenses :
Banner 65 66.30 69
Flyers 50 51 53
Business card 70 71.40 74.30
Operation Expenditure :
Raw Material 2 320 002 2 366 402 2 461 058.10
Direct Labour 45 342 46 248.80 48 098.80
Shop Rental 72 000 73 440 76 377.60
Utilities ( Water & Electricity ) 15 360 15 677.20 16 293.90
Insurance 10 800 11 016 11 456.60
Others Operation Expenses :
Maintenance 250 255 265.20
License 130 132.60 137.90
Road tax 90 91.80 95.50
Overhead expenses 158 161.20 167.60
Administration Expenditure :
Salary for General Manager 23 358 23 825.20 24 778.20
Salary for Financial Manager 23 358 23 825.20 24 778.20
Loan Repayment :
Principle 4 000 4 080 4 243.20
Interest 1 000 1 020 1 060.80
Capital Expenditure :
Machinery and Equipment 2 400 - -
Furniture and Fittings 3 000 - -
Motor Vehicle ( Van ) 22 000 - -
Signboard 3 000 - -
Laptop ( Marketing ) 900
Deposits 1 870 - -
Total Cash Outflow 2 581 225 2 601 829.10 270 5891.90

Cash Surplus / ( Deficit ) 334 528.30 335770.90 349 212.10

Beginning Cash Balance 0 334 528.30 670 299.20
Ending Cash Balance 334 528.30 670 299.20 1 019 511.30
 PRO FORMA INCOME STATEMENT
(3 CONSECUTIVE YEARS)
Year 1 ( RM ) Year 2 ( RM ) Year 3 (RM )
SALES 2 880 000 2 937 600 3 055 104
COST OF GOOD SOLD (COGS)
Opening stock for finished goods 0
Add : Cost of goods manufactured 2 396 792 2 449 510.20 2 503 881.30
Goods available for sale 2 396 792 2 449 510.20 2 503 881.30
Less : Closing stock for finished goods ( 31/12 ) 0

GROSS PROFIT 483 208 488 089.80 551 222.70

Less : Expenditure
Marketing expenditure 25 170 25 673.40 26 700 3
Administration expenditure 43 968 44 847.40 46 641.30
Other expenditure 185 188.70 196.30
Interest on Loan 1 000 800 600
Depreciation for Fixed assets 1 380 2 760 4 140

Total Expenditure 71 703 74 269.50 78 277.90

Net profit Before Tax 554 911 562 359.30 629 500.60
Tax 0 0 0
Net Profit After Tax 554 911 562 359.30 629 500.60
Accumulated Net Profit 554 911 562 359.30 629 500.60
 PRO FORMA BALANCE SHEET
(3 CONSECUTIVE YEARS)
Year 1 Year 2 Year 3
Fixed Assets (Book Value)
Motor Vehicles (Van) 17 600 13 200 8 800
Furniture and Fittings 2 400 1 800 1 200
Machinery (Sewing Machine) 1 920 1 440 960
Laptop 720 540 360
Signboard 2 400 1 800 1 200

Current Assets
Cash 334 528.30 677 654.60 1 032 522.20
Account Receivable 85 720 87 434.40 90 931.80
-
590 664.30 776 513.60 1 122 963.10
Owners’ Equity
Capital 15 753.30 15 753.30 15 753.30
Accumulated profit 554 911 562 359.30 629 500.60

Current Liabilities
Account payable - 182 401 465 709.20

Long Term Liabilities

Term Loan 20 000 16 000 12 000
FINANCIAL ANALYSIS (CURRENT RATIO NET
PROFIT MARGIN ONLY) FOR 3 CONSECUTIVE
YEARS

YEAR 1 YEAR 2 YEAR 3

CURRENT ASSET RM 420 248.30 RM 757 733.60 RM 110 443.10
CURRENT RM 0 RM 182 401 RM 182.401
LIABILITIES
CURRENT RATIO 0 4.51 Times 5.58 Times
ANALYSIS The business has the ability to generate cash to meet
the short-term obligations.
 Current ratio for three consecutive year

0
Year 1 (0) Year 2 (4.51) Year 3 (5.58)
CONCLUSION
 In general conclusion, Eleglow Enterprise will meet its goals by following the
Business Plan.

 Our target market is mainly focus on women in various age. With the start
up capital total up RM 15753.30 Eleglow Enterprise will grow into a larger
company.

 By following the plan, Eleglow Enterprise will grow up to 4% of sales in the

first 3 years after its initial launch.