1

1.
1 Submission Letters
Diploma in Business studies,
Semester 6,
MARA University of Technology (UiTM) Sarawak,
Mukah Campus
96400, Mukah
Sarawak.
Madam Siti Farah Bt. Lajim,

Entrepreneurship Lecturer (ENT 300).
MARA University of Technology (UiTM) Sarawak,
Mukah Campus,
96400, Mukah Sarawak
26 July 2015
Madam,
SUBMISSION OF BUSINESS PLAN REPORT
With the mentioned above, we had completed our Business Plan report and we would
to submit it. The studies and research had been done according to the guidelines and
procedure.
2.
We really appreciate your kindness in guiding and advising us throughout this
process of completing the business report. Therefore, we would to thank you. Without
your guidance we might not able to complete this task in the right track and produce a
good proposal.
1 | Fu n d a m e n t a l O f E n t re p re ne u r s h i p (E N T 3 0 0 )
3.
We will use the knowledge and skill that we gained from the process of making
this proposal in the future. Through this business plan, we able to run our business
smoothly.
4.
We really hope you will be satisfied with our report and wish that it will be
evaluate as fairly as possible. Your sincerest and honest condition be much appreciate.
Thank you,
(Jerry Jampi Anak Giman)

General/Marketing Manager,
K-rate karaoke
1.2 ACKNOWLEDGEMENT
This assignment would not have been possible without the guidance and the help of
several individuals who involved or participated and extended their valuable assistance
in the preparation and completion of this assignment.
Firstly, we would like to thank Miss Siti Farah, our Entrepreneurship lecturer for
her sincerity and encouragement during the process of our assignment. We appreciate
her patience towards us when we ask her many questions about assignment.
We also to thank for the company and government sector that given advice due
to our business. Without their advice, we will not able to determine which step that
should we make in doing or opening our business strategies and plan. They support us
in given information that we need to complete our assignment.
We also would like to thank our parents for giving their support in terms of moral
and financial support for us to complete this assignment. Without their support, we
might not be able to complete this assignment.
Not forget also, we would like to say thank you to ours friends and classmate for
sharing their knowledge and advice to complete the assignment. We also thank for
entire person who helps every single matter in our assignment until it done.
Thank You,
(Jerry Jampi Anak Giman)

General Manager.
1.3 INTRODUCTION TO BUSINESS PLAN

The business plan of K-Rate Karaoke is proposed so that it can be taken by
comprehensive manner. This business plan gives us opportunity to assess on business
industry in the future. We agreed to form partnership business in order to meet our
opportunity in entertainment industry. The business is in form of enterprise consisting
four shareholders.
All shareholders had agreed as stated in the agreement letter that mentioned about the
capital, contribution, loss and profit of the business. We chose this business because it
shows the equality and no one will be discriminated as the profit or losses are equally
divided as stated ratio and the financial manager will announce whether the business is
going to gain profit or incur loss by the end of the year.
The partnership is an excellent option for us to take part in because we can share our
ideas and knowledge to expand the business, to gain more profit, achieve high
productivity from time to time and open job opportunities for the community, especially
youth.
1.4
PARTNERSHIP AGREEMENT
Date: 25 September 2015

To all partner of K-rate Karaoke Box
1. Hereby, all the persons as to be mentioned below had agreed to form partnership
business by the registration lawyer that the following are legal partners of K-rate.
Name
Jerry Jampi Anak Giman
Dorothy Rhamet Baru
Justin Balang Razali
Harrison Jhay Anak Kuyat
Ignatius Presley Anak Berain
I.C Number
870409-13-6131
891214-13-6486
890819-13-6363
880525-13-5523
890123-13-5811
2. With this the partner will be bound under the rules and regulation of this
partnership. Hereby, the partners agreed that the capital contributions from each
partner are as follow:
Name
Dorothy Rhamet Baru
Harrison
Jhay
Anak
Kuyat
Ignatius
Presley
I.C Number
870409-13-6131
891214-13-6486
890819-13-6363
880525-13-5523
Anak 890123-13-5811
Contributions (RM)
20,000
20,000
20,000
20,000
20,000
Berain
3. For the purpose of profits contribution it will be given according to ratio of

contribution.
4. Every Partner must be take part in management of the business. The position of
each partner in business organization is:
Name
Jerry
Jampi
I.C Number
Anak 870409-13-6131
Position
General Manager
Giman
Dorothy Rhamet Baru
891214-13-6486
890819-13-6363
Harrison Jhay Anak 880525-13-5523
Marketing Manager
Operation Manager
Financial Manager
Kuyat
Ignatius Presley Anak 890123-13-5811
Administration Manager
Berain
5. However, any partner is allowed to contribute additional amount of capital more

than state above. The rate of percentage of profit sharing will be then be
conferred by the new amount of contribute by the particular partner. On the other
hand, it is greed that in whatever matter occurred, unless been by all partners
later.
6. All partner are required to work as team to achieve the vision and mission of the
company.
7. Any partner who want to quit from this partnership, shall give at least one month
notice prior resignation. But, the remaining partners may continue the business.
8. If any of the other partners passed away, the business entity shall not be
dissolved and shall be continued by his or her inherited of partners of kin as
stated in this agreement
9. Partner are collectively responsible to the liability of the business and shall act
accordingly, ethically and normally.
10. Any provisions in the partnership Act 1961 shall take effect on any situation,
circumstances and matters that are not been mentioned in letter.
11. All partners agree that they have understood the contents of this agreement and
will obey the rules and regulation of the partnership. Any partners, who disobey
the rules and regulations, may take all responsibilities due to damage or loss
defects caused by her action
12. All matter of financial and true accountants and also conformation of all things
relating to partnership will be made available at all times.
1.5
NAME OF COMPANY
Our company name is K-Rate Box. K is stands for karaoke which is our main service
towards gain customer satisfaction. Rate is stands for customer voice rate which is our
business install a new voice rating system. Box is stands for customer individual space
that our business provided to them.
1.6
Nature Of Business
Our company is in a business form of partnership, Partnership is incorporated under the

Business Registration Act 1956 (Amendment 1978). K-rate karaoke owned by 5
partners which are all Bumiputera. The reason why we choose partnership is due to its
high demand. We also have the same opinion or purposed to open the business.
The entire shareholder which is the entire partner has their own responsibilities in K-rate
karaoke. Jerry Jampi Anak Giman become a General Manager and automatically as a
Marketing Manager with partner Dorothy Rahmet, Ignatius Presley as a Administrative
Manager, Justin Balang as a Operation Manager, and Harrison Jhay Anak Kuyat as a
Financial Manager. All the position was arranged according to qualification of all the
partners.
1.7
Industries Profile
In this industry, our company is competing with several companies such as Ruai Nan,
K.I, K-Box, Bungai Berduri and Mas Dahlia.
K-Box is the longer karaoke place in Mukah. They well known by its customer and most
of them is regular customer. They also had experience in handle any difficulties and
manage their operation very well. They also has very strong financial position.
Ruai Nan has a good location that provides better services for customer. Its give
customer full satisfaction to enjoy their time there. They also has a systematic business
management that allows their activities follows the flow.
K.I has a strategic location at the city centre near to the hotel. Even outsides people can
go there easily because location near to hotel. They give a big space for customer to
enjoyed their time karaoke.
Bungai Berduri and Mas Dahlia offer big space for customer and has full facilities to
enjoyed their time at there. Besides, they also has strong financial positions and
experience to handle any difficulties.
1.8
FACTORS IN SELECTING THE PROPOSED BUSINESS
Several reasons had led us to choose entertainment as our proposed business. As we

already know, people nowadays choose to entertain themselves in various ways to
avoid from being stressed. We had chosen to provide entertainment to the community
and to create a better and healthy way to reduce tension.
Some people prefer to let out their stress by expressing themselves which is another
reason that support the reason for us in choosing this business. We provide private
rooms so that customers have some privacy and are comfortable spending their time.
Beverages are also available to purchase in our premise. It will help to ease the
customer from going to other shops to purchase food and drinks.
1.9
FUTURE PROSPECTS OF BUSINESS
For the future, we hope that our company will be known in future as a best service K-RATE
BOX in Mukah. We hope that our company will be able to expand the business throughout
Sarawak and become a number 1 that provide a best service of K-RATE BOX.
1.10
DATE OF COMMENCEMENT
Our business starts operating on the early January in the year of 2016. All partners have
agreed to start the business on the specific dates because we assume that by the
month of February, our service will be known by the customer through the promotion
and attract customer come at our service.
1.11 Logo
Logo
Classic microphone
: Represent k-rate karaoke have classical song.
10 | F u n d a m e n t a l O f E n t r e p r e n e u r s h i p ( E N T 3 0 0 )
Colorful background
: It show that our k-rate karaoke room has decorate by
colorful designed room which customer can feel comfortable and enjoy it.
Star
: It will show that we serve customer fully satisfied by their
demand.
1.12 Business Background

Name of the business/company:
Address:
K-Rate Box
Lot 154, Ground Floor No.1, Block 7,
Bandar Baru Mukah,
96400 Mukah,
Sarawak.
Telephone:
Fax number:
Email:
Form of business:
Main activities:
Date and number
of
registration:
Date of commencement:
084-864235
084-86423501
K-Rate@gmail.com
Partnership
Karoeke and entertainment
business January 2016
February 2016
1.13 PARTNERS PROFILES

GENERAL MANAGER OF K-RATE KARAOKE
Name of partner :
Identity card number :
Permanent address :

870409-13-6137
Lot 2530 Phase 2C-3A, Taman Desa
Mobile phone number :
Senadin, 96000 Miri, Sarawak

012-8769389
Date of birth :
Age :
Marital status :
Academic qualifications :
09 April 1987
28
Single
Diploma in Business Studies (UiTM)
Courses attended :
Bachelor Degree in Marketing (UiTM)

Business courses
Skills :
Marketing courses
Able to manage market sells in product or
Experiences :
Present occupation :
Previous business expertise :
service
Manager 3 year in Red Box (Malaysia)
General Manager
Marketing manager at Red Box (Malaysia)
MARKETING MANAGER OF K-RATE KARAOKE
Name of partner :
Permanent address :
Dorothy Rhamet Baru

891214-13-6486
Kampung Lumut, Jalan Trusan, 98850

Date of birth :
Age :
Marital status :
Lawas, Sarawak
014-6813124
14 December 1989
26
Single
Bachelor Degree in Marketing (UiTM)
Courses attended :
Master Degree in Marketing (UiTM)

Business seminar
Skills :
Marketing courses
Expert in marketing activities
Experiences :
Speak fluent English

Executive in Kingwood Hotels
Marketing manager
Marketing projects for Kingwood Hotels
OPERATION MANAGER OF K-RATE KARAOKE
Name of partner :
Permanent address :

890819-13-6363
Kpg Long Tuma, Jalan Lawas Damit, 98850

Date of birth :
Age :
Marital status :
Lawas, Sarawak
017-5772422
19 August 1989
26
Single
Bachelor Degree in Operation Management
(UiTM)
Master Degree
in
Business Administration
Courses attended :
(CURTIN)
Business seminar
Skills :
Experiences :
Previous business expertise
Entrepreneurship course
Able to speak fluent English
Operation manager at Bintang Mega Mall, Miri
Operation manager
Operation manager in KTV, Lawas
ADMINISTRATION MANAGER OF K-RATE KARAOKE
Name of partner :
Permanent address :

890123-13-5811
Rh. Nyuka, Lubuk Lemba, 96100 Ulu Sarikei,

Date of birth :
Age :
Marital status :
Sarawak.
019-8584025
23 January 1989
26
Single
Bachelor Degree in Human Resources (UiTM)
Master Degree in Business Administration
Courses attended :
(UKM)
Management courses
Skills :
Experiences :
Business courses
Excellent in administration activities
Human resource manager at RTM
Administration manager
Managing human resource at RTM
FINANCIAL MANAGER OF K-RATE KARAOKE

Name of partner :
Permanent address :

880525-13-5523
Rh. Gawan, Ng. Aman, Sg. Mujong, 96800 Kapit,

Date of birth :
Age :
Marital status :
Sarawak
014-8873169
25 May 1988
27
Single
Bachelor Degree in Finance (OUM)
Master Degree in Islamic Banking And Finance
Courses attended :
Skills :
(OUM)
Entrepreneurship courses
Expert in accounting and
management
financial resources
Experiences :
Accountant at Sin Yang Company
Financial Manager
Previous
business Auditing financial assets
expertise :
of
1.14 ORGANIZATION CHART
General Manager
Financial Manager
Marketing Manager
Dorothy Rhamet Baru
Operation Manager
Justin Balang
1.15
LOCATION PLAN
This building is nearby in
Mukah. This location is very strategic because every side view can be seen and near to the
shopping complex and hotel. The address is Lot 154, Groun Floor No. 1, Block 7, Bandar Baru
Mukah, Sarawak.
2.1 INTRODUCTION OF MARKETING PLAN

Marketing is a social and managerial process in which individuals or groups obtain what
they want and need through creating and exchanging of products and values with
others. In business, marketing is responsible in introducing or promoting goods and
services to the customer. It is an important strategy to start and develop a business.
In order to succeed in marketing our service, creating a marketing plan is essential for
the business. A well prepared marketing plan can help the business to evaluate the
marketing acceptance, develop strategies to market the products and services of the
business, identify the required resources to execute the planned strategies, and
estimate the necessary finance needed for the marketing department.
All activities related to fulfilling the customers needs and wants or the necessities
needed to achieve the targeted profit is very crucial in the marketing concept. For the
success of the business, we need to ensure that the products or services we provide to
the customers fit their wants and needs. The Maslows Theory stated that human needs
can be defined as the basic psychological needs and requirement in ones life. The
three main needs in the theory is basic needs, safety needs and psychological needs.
In order for our business to succeed, we have to ensure that the gaps of the customers
wants and needs are filled as their satisfactions are a very crucial matter to the
business. This explains the dependence of the business success to the success level of
the marketing plan. Achieving these would require us to identify the strength and
weaknesses of our business and also the environment of the market.
In the entertainment industry, organizers are responsible to provide programs, service,

facilities and hospitality to the customers. It is an important strategy to start and develop
a business.
In accordance to the marketing plans and strategies, our business, K-RATE BOX has
developed some plans and strategies to introduce to the customers about the services
that we provided. The business that we run has a big potential to expand and develop
as entertainment is something that is vital in a persons life. Besides, the demand from
the public is encouraging. Thus, to make sure the business succeeds and continuously
operating, good marketing plans and strategies must be set up in detail.
2.2
MARKETING OBJECTIVE
The concepts of our market are towards satisfying customers needs and wants, as we contribute
towards profit for the business. We need to make sure that our customers are satisfied with our
services. Marketing plan is about ensuring that our customers receive good services in term of
providing comfortable environment, latest hits and additional beverages. Our company has also
set some marketing objectives or goals that need to be achieve. They are:
To promote healthy and stress free in Mukah.
To earn maximum profits.
Control 40% of entertainment market in Mukah.
To provide service for customers satisfaction.
2.3 SERVICE DESCRIPTION

K-rate box is a business that offers service to the customer. This business will try to make sure
that every customer is satisfied with the service provided such as:
Provide room per hour
Comfortable room services
Effective sound system
Our market is centralised to the Mukah surrounding. This is due to certain factors such as the
strategic location of Mukah as a developing city with many public and private sectors. Plus the
vast are of education estate. The population of mukah has potential to expand as its develop,
where the majority of the people are students, middle and upper class people. Therefore, our
company will not have any problem to find our customer. The target of our business is the
teenager and young adult aged 18 and above, who have the interest with entertainment and wants
to develop their talent.
2.4 TARGET MARKET

Target market can be defined as the group of customers that have the same needs and wants that
can be satisfied by a business. In other words, target market refers to individuals, private
organizations, government organizations and who have the interest with entertainment and wants
to develop the activity as a leisure time activity and it can be also made as a profitable
profession.
Our target market is teenagers and family who want to spent their time together.
Marketing are base in the Mukah and its surrounding area. With the different customers attitude
may be info segment and different marketing approaches will be taken for each market segment.
Target market is a place where we want to market our services to the customers. Firstly,
our company has to decide where the best place to give services to the people. The customers
really want to satisfied their needs and their expectations of the services provided to them.
Finally we decide and agreed to open our business at Mukah which is located at Lot 154, Ground
Floor No.1, Block 7,Bandar Baru Mukah,96400 Mukah, Sarawak. This is strategic place where it
centres of the town.
Our company has seen the opportunities of this market in the targeted area. We choose
here because this is the point of interest of the town and it is the busy road at the morning and the
evening and its nearly with housing. The location is more attractive due to our premises is at the
corner. Furthermore, our premise is near to housing areas, schools, colleges, companeis, and
offices.
2.5 MARKET SEGMENTATION

In marketing market, it is important to know segmentation of target market. It is used to estimate
how many population that is expected to rent our service. The market target for our business is
teenagers, young adults and adult as most people enjoy entertainment nowadays with friends
during leisure time.
In order for our market segmentation process to be effective, we should know the vital
characteristic of our target market. We forecast the number of users that will rent our service so
that it will be easier for us to predict our monthly revenue.
The measurability of variables such as size of our target market depends on geographical
profiles. We search information about our potential competitors so that we can set up our ideas to
make our service better. The groups in market segmentation should be easily reached which we
can achieve through effective advertising programs such as promotion and loyalty.
Main Dimension
Variable
Breakdown
Geographic Segmentation
Demographic
Region
Age
Urban & Suburban : Mukah

15-55
Segmentation
Gender
Male & Female
Income
Occupation
RM800 and above

Students, new graduates, new
workers, young professionals,
Psychographic
Race
Home ownership
Personality
pensioners
All
Renting and living with parents
Indoor entertainment, open
minded, up-to-date
Lifestyle
Highly influenced by peer

groups, active life, social life
Behavioral
Hobby
Singing
Benefits sought
Communication Benefits
Segmentation
Multi-language
Functional Benefits
Stress relieve
Perceptual Benefits
Affordable price
Usage rate
Daily basis, weekly basis,
User status
monthly basis
Regular user & Light user
Loyalty status
Medium
2.6 MARKET SIZE
Market size refers to the potential purchase of the target market. This will include the purchase of
competitors products or services within the same industry. Market size is normally stated in
terms of units or ringgit. All of them are usually calculated daily, monthly or annually.
The survey conducted within the vicinity of Mukah shows that there are a few entertainment
centers but only several are popular. The most preferred are K-box Family Karaoke, Ruai Nan
Pub and MK Lounge. These premises organized occasional events to attract customers such as
Ladies Day, festive celebration promotions and so on. Due to this, we provide programs during
festive seasons and special promotions on certain days. This will help attract and maintain
customers as our business will not focus on population size because as we know, the operation
and profit depends on the number of customers who come in unpredictable numbers.
The calculation of our market size is as follow:

POPULATION IN MUKAH BASED ON 2014: 46,260 people
60% of them practice entertainment:

= 60% x 46,260
= 27,756 people
Types of entertainment
Percentage
Karaoke
35%
Bistro
20%
Night club
25%
Arcade
5%
Cyber caf
15%
Assumption of only 35% prefer going for karaoke session:

= 35% x 27,756
= 9,715 people
Karaoke sessions divided into two categories that are:
For daytime (50%)

= 50% x 9,715
= 4,857 people
Student (60%)
Adults (40%)
= 60% x 4,857
= 2,914
= 40% x 4,857
= 1,943
For night time (50%)

= 50% x 9,715
= 4,857 people
Student (40%)
Adults (60%)
= 40% x 4,857
= 1,943
= 60% x 4,857
= 2,914
SPENDING
Students
Adults
Daytime
Night time
RM15 x 2,914
RM20 x 1,943
=RM43,710
=RM38,860
RM20 x 1,943
RM25 x 2,914
=RM38,860
=RM72,850
FREQUENCY
Assuming twice a month:
=RM194, 280 x 2
=RM388,560
TOTAL MARKET SIZE

Per annum
=RM388, 560 x 12
=RM4, 662, 720
2.7 Market Competition

Competitors refer to other business that offer similar, substitute, or alternative products and
services to the same target market. Competitors are important especially for our company that
needs to compeete with each other that must result in quality product or services. As a
newcomer, we are actually comparing the products, prices, distribution channel and promotion
with other competitors. This will help us to gain competitive advantage and also help to find out
our wickness and strenghts. After we have made a research, we found that are major competitors
that offer the same services to the customers. They are :
Competitor
K-Box
Strength
Well known and has
Weakness
The fee is quite high.
its own regular

customer.
Well experience and
may handle any
difficulties.
Strong financial
Ruai Nan
position.
Have a good location.
Well known and has
its own regular
customer.
The fee is quite high.

Directly targeted to
upper class people.
Lack of acceptance
from female
K.I
Strategic location at
the city centre.
Offer big space.
Bungai Berduri And Mas
Responsible for their
Dahlia
customer.
Good location with a
full facilities.
customer.
Lack of acceptance
from female
customer.
Limited space.
Lack of acceptance
from female
customer.
2.8 MARKET SHARE
Our market share covers areas in Mukah. It is wide because the demand had existed to customer
and other unexpected causes. The demand for entertainment is there as mentioned before.
However, both the company goals and customers demand should be a priority, especially to the
needs and wants of the customer. Market share is the total potential purchasing power made by
the target market. The total market share is the sum of our production and our competitors
production. Our market share is calculated in term of percentage and later change of Ringgit
Malaysia and calculated on yearly basic.
2.8.1 MARKET SHARE BEFORETHE EXISTENCE OF K-RATE KARAOKE

Companies name
Market share (%)
Per annum (RM)
K-box Karaoke
20
932,544
Ruai Nan
17
792,662
MK Lounge
16
746,035
TST
15
699,408
Nibong
13
606,154
Medan Seafood
373,018
BungaiBerduri
279,763
Mas Dahlia
233,136
Total
100
4,662,720
K-Box Karaoke
6% 5%
Ruai Nan
8%
20%
MK Lounge
13%
Medan Seafood
Nibong
17%
Bungai Berduri
15%
TST
Mas Dahlia
16%
2.8.2 MARKET SHARE AFTER THE EXISTENCE OF K-RATE KARAOKE

Companies name
Market share (%)
Per annum (RM)
K-Box
17
792,662
Ruai Nan
15
699,408
MK Lounge
14
652,781
TST
14
652,781
Nibong
12
559,526
K-Rate
419,645
Medan Seafood
373, 018
BungaiBerduri
279,763
Mas Dahlia
233,136
Total
100
4,662,720
6%
K-Box Karaoke
5%
Ruai Nan8%
9%
K-Rate Karaoke
17%
MK Lounge
TST
15%
12%
Medan Seafood
Bungai Berduri
14%
14%
Mas Dahlia
Nibong
2.9 Sales Forecast

2.9.1 Sales forecast for Jan-Dec 2016
Month
Sales (RM)
Notes
January
Percentage
(%)
6
25,178.70
Beginning of
business
February
March
April
May
June
July
August
September
October
November
December
6
6
7
7
9
9
10
9
9
11
11
25,178.70
25,178.70
29,375.15
29,375.15
37,768.05
37,768.05
41,964.50
37,768.05
37,768.05
46,160.95
46,160.95
Total
100
Kaul Festival
Gawai Festival
Hari Raya Aidilfitri
National Day
School Holiday
Christmas
Celebration
419,645
50,000.00
45,000.00
40,000.00
35,000.00
30,000.00
25,000.00
20,000.00
15,000.00
10,000.00
5,000.00
0.00
2.10
MARKETING STRATEGIES
Marketing strategies are plans designed to reach marketing goals. A good marketing strategy
should integrate an organizations goals, policies and action into a cohesive whole. It helps in
putting the organization into the position to carry its business efficient and effectively. Marketing
strategies are important in the business plan because marketing strategies can determines whether
the projected sales forecast can be achieved or not. We must being creative and be more
innovative in the market decision.
After considering the competition with our competitors, our company has developed some
strategies to attract our customers to deal with us. Why we need a marketing strategy? As
entrepreneur, we must develop appropriate marketing strategies in order to achieve our sales
forecast. Some factors need to be considered when we went to develop marketing strategies.
These factors are important in order to ensure that we can compete with our competitors in order
to maximize the profit as well. The factors are :
Enhance customers satisfaction

Strategy (How to treat customer well)
Promotion
Business place
2.10.1 SERVICE STRATEGY

Our company will concentrate on the service qualities that we have provides to our company.
Besides, we also not ignore our public relationship service. Our company should emphasizing
the relation with our customer and maintain the relationship as the main profits sources. We have
to try harder to gain customers as our company is new enter to the market.
In term of services strategy, our company provide the high quality of karaoke equipment and
strategic place to our customer. Other than that, we will spread our new services through
advertisement and newspaper. Our K-Rate Box provide the new update song, high quality in
term of services and new background.
2.10.2 PRICING STRATEGY

For the process of price determination, we have made several investigation and research, and by
making comparison of the price rates according to the five competitor. On the other hand, we
have also investigated if the price rates that we purposed are competitive or not. According to the
research, we have reached the decision to put a competitive price to our customer. This is along
with the services we provided, and in conjunction with the economic situation. Among other
factor that influenced the price determination are:
The economic condition and the status of the residential surrounding.

The surrounding factors that are the location of the business, which is at the city centre,
shopping complexes, and higher institution learning centre.

The price rate and services provided by the other competitor.
The affordability of the customer because our target market is a residential area around
our premise and it is opened to all, whether the elite, middle class even the less capable
people.
Based on these factors, we have ran an investigation and researching finalising the service price
rate, so that is suitable and fulfil the need of the customer. Below is the price that we set based on
competition we compared with several competitor.
( Per Hour )
Competitor
Day
Night
K-box
RM20
RM25
MK lounge
K-rate
RM20
RM80
RM25
OTHER COMPETITOR
Ruai nan
TST
Nibong
Medan seafood
Bungai Beduri
Mas Dahlia
2.10.3
PLACE STRATEGY
Place strategy is aimed to establishing a structure
and controllable distribution system to ensure that our service offered reaches the customer
satisfaction. It refers to the decision made on the location of the business. We decided to open KRate Box at Lot 154, Ground Floor No. 1, Block No. 7, Bandar BaruMukah, 96400 Mukah,
Sarawak.
2.10.4 PROMOTION STRATEGY

This strategy plays an important part to introduce our Karaoke Rate Box (K-rate) to the people. A
good promotional strategy will ensures that many people will come to get the services that they
want. There are a few promotions strategies that we want to used to promote our entertainment.
We intend to use print and electronic media the distribution of pamphlets in open area, putting
banner at strategies location. Through this, we hope that there will be many people will get the
news about our services. Other than that, through this systematic promotion, we want to sure that
the customers are able to keep in touch with us in order to gain more information about the
services offered by our karaoke rate box.
1. Signboard
Signboard will inform the customers about our business identity such as name of the
company and the logo of the company. It will be put in front of our company premises. It is
easy for the customers to recognize our premises.
2. Banner
We will put banner in the strategies in the strategic are as part of our outdoor
advertisement. We will put up the banner before the grand opening of our business. By
using this way, we could directly promote our business to the public. We will place
banner at strategic place such as in roundabout so that people will realize our existence
and will be coming to our fitness centre.
3. Business Card
The business card will be given to our customers and it is important whereby it can the full
information about our business, telephone number and also the address of our location.
4. Flyers
We also provide business flyers to our entertainment and giving away at certain
residential area. This pamphlet will state all the important information about our service,
fees, location and details.
OPERATION
MANAGEMENT
3.1
INTRODUCTION TO OPERATION PLAN
Operating management is the one of the most important parts of business plan. Operation
management can be define as the process of marshalling to the entrepreneurship carefully plan
about their operation activity which is to ensure that the business will meet the need and wants to
the customer. In the operational activities involve of several components which is involve in the
transformation of business input to output are involve the following:
1.
Business input
2.
Transformation system
3.
Feedback
4.
External environment
Business input refers to all resources required to produce a particular output. For an example are
the manpower which is a person who use the energy to operate the activities and also the raw
materials to produce to output, machines and equipment, technology and lastly the information
and capital. All of these resources are the most important part must have before to operate the all
of the activity of production.
Besides that, there is the most important part to the entrepreneurship to gain the feedback from
the customer that what they are wants and needs. It is important to meet our customer demand
and indirectly, it can help our company to get the highest profit from the feedback of our
customers.
3.2
GOALS AND OBJECTIVE OF THE OPERATION
There are several goals and objective that our company set up our Operation Plan. The main
goals and our objective are listed below:
Increase our revenue through the advertising and promotions such as offering different
song on different days of the week.

To ensure the process in the organization run smoothly.
Build a strong reputation by producing high quality services to customers.
Update the quality service.
Ensuring the operation activity is based on the plans that have been stated. Maintain the
best environment.
3.3
OPERATION EXECUTIVE FUNCTION
There are several functions and duties that need to be done by the operation executive. In our
company, the functions that are performed by operation manager are as follows:
i.
Plan for premise layout.
ii.
Supervise the daily task.
iii.
Monitor the staffs punctuality, absence and sickness.
iv.
Measure the operational budget.
v.
Continuously analyse the operating cost.
3.4
ORGANIZATION CHART
Operation Manager
(Justin Balang)
Male
worker
Male
worker
Male
worker
Female Female Female

worker worker worker
3.5
OPERATION HOURS
In operation management, time management is very important for organization manage
their all production and workers. Below is the schedule for our operation hour per week.
Day
Monday-Sunday
Public Holiday
Operation Hour
Shift 1 09.30am - 07.00pm
Shift 2 06.30pm - 02.00am
Shift 1 09.30am - 07.00pm
Shift 2 06.30pm 02.00am
Total Hour Per day

8 hour
8 hour
8 hour
8 hour
Besides that, we are very restricted about the cleanliness and the maintenance in the workplace.
In order to maintain the cleanliness of our store, we will make sure that every day before and
after production activity is going on, every of our workers need to cleaning tasks as sweeping,
mopping the floor and so on. We also will make sure check the machine before the customer use
the machine.
3.6
BUSINESS HOURS
Below is the schedule for our business hours per week:

Day
Monday-Sunday
Public Holiday
Business Hour
10am-2am
9.30am-2.30am
Total Hour Per Day

16 Hour
17 Hour
Our business operation will depends on the situation, for an example, public holiday will be
operation 17 hour due to people will not work and student not go to school. In other word, they
will need an entertainment.
3.7 Manpower Planning

It is very important thing to manager concern about the job vacation that will ensure the
organization to get quality of workers. We have to concern about the workers who are have good
communication skills, good public relation and the person who are able to work under stress
whereby they will face many kinds of customers characteristic. This is very important
requirement that must have to manager concern before to hire the suitable employess.
Also in production management, the quality of service will be the most important things
because it will make our services are meet the demand of our customers for an example is the
way of our workers treat the customers. In orde to achieve this quality of services, the manager
must make proper selection of the worker which is to make the production management are
going well.
Position
Male Workers
Female Cashiers
Skills/Qualification
No. Of Staff
Minimum SPM
3
Good communication
skill
Maintenance skill
Minimum SPM
3
Good communication
skill
3.8
JOB DESCRIPTION
Position
Male worker
Skill/Qualification
Minimum SPM
Good
communication
skills
Maintenance skills
Responsibilities
Serve the customers upon
their arrival.
Always check the audio
systems from time to time.
Responsible in making
sure the counter is always
Female worker
Minimum SPM
Good
communication
skills
occupied.
Ensure that the premise is
clean.
Responsible in making
sure the counter is always
occupied.
Serve the customers upon
their arrival.
3.9
SCHEDULE OF REMUNERATION
Position
No.
Monthly
EPF
SOCSO
Amount
Salary
Contribution
(2.5%) (Rm)
(Rm)
(13%) (Rm)
110.5
110.5
110.5
110.5
21.25
21.25
21.25
21.25
981.75
981.75
981.75
981.75
Male trainer
Male trainer
Male trainer
Female
1
1
1
1
(Rm)
850
850
850
850
trainer
Female
850
110.5
21.25
981.75
trainer
Female
850
110.5
21.25
981.75
trainer
Total
5890.5
3.10
SYMBOL USED IN FLOWCHARTS
SYMBOL
TYPE OF ACTIVITY
DESCRIPTION
Operation
Activities that modify

transform or give values to
input
Transportation
Transport activity occurs

when the materials are
transported from one point to
another
Inspection
Activity that measure

standard of the in-process
material, finished products
and services
delay
The symbol is used when the

in-process material is
restrained in location waiting
for next activity
Storage
The symbol is used when the

in-process materials or
finished products are stored
in the storage area
3.10.1 FLOWCHART FOR PROCESS OF SERVICE
Meet the
customer
Customer go
to counter
Customer
asking how
Tell about size

of the room
for how many
people can
Customer
agree with
Customer
made a
Buy snack and

drink
Register out
3.10.2 FOLWCHART FOR SERVICE
Greet the
customer
Register and
payment for
in customer
Bring
customer to
their room
Start sing
session
Buy snack and

drink
Register out
3.11
OPERATION LAYOUT
3.12 Production Planning

Sales Forecast = RM419,645
Types
Percentage
Students(50%)
(RM209,823)
Day
Night
60%
40%
Total selling RM125,894

per year
Adults (50%)
(RM209,823)
Day
Night
40%
60%
RM83,929
RM83,929
RM125,894
Price per
head
RM15
RM20
RM20
RM25
Average
people per
year
8,393
4,197
4,197
5,036
Average
people per
month
700
350
350
420
Average
people per
day
24
12
12
14
3.13
MACHINE AND EQUIPMENT
N
o
1
Item
Quantity
Microphone
25
Lansonic Karaoke Speaker System
11
149
1639
SAST Karaoke High Power Amplifier
599
599
Sharp 24 LED TV
Samsung 32 LED TV
10
Price per unit Total cost

(RM)
(RM)
69
1725
549
4392
799
7990
Sony Bravia 40 LED TV
999
3996
Touch screen Karaoke System/ KTV System

Machine
10
970
9700
Hester Freezer
3013
3013
33,081
3.14 SECURITY AND FIRE SYSTEM
No
Items
Quantity
Price/Unit
Total (Rm)
(Rm)
1
Security system
Fire Alarm
Fire Distinguisher
4
4
100
100
400
400
Fire Distinguisher
50
250
CO2
Waterless Fire
12
50
600
Protection
Emergency and Exit
200
600
187.50
750
240
480
ABC Powder
Lighting
4ch complete ahd
dome cctv camera set
Hd cctv camera 2pcs
LED Array
Waterproof cmos ir
camera
Total
3480
3.15
RAW MATERIAL
It is important to determine the types and amount of raw material need in business production
and process. There are four steps involved in material planning.
Identify and list down the raw materials required

Prepared the bill of material
Calculate the quantity of raw material required
Identify the supplier of the material
3.15.1 RAW MATERIAL

No.
Items
Quantity
Price per unit
Total cost (RM)
(RM)
1.
Mineral
10
10
100
2.
Soft drink
32
30
960
3.
Bottle
60
180
4.
Cookies
40
200
5.
Snack
40
11
484
Total
RM1920
3.15.2 FURNITURE AND FITTING

No.
items
quantity
Price per unit
Total cost (RM)
(RM)
1.
Air Cond
599
3594
10
787
7870
1588
3176
2.
Reception table
486
972
3.
HP-all-in-one
1838
1838
PC
4.
Printer
157
5.
Telephone
68
68
6.
Sofa
14
799
11186
7.
Coffee Table
12
329
3948
Total
32,809
3.15.3 Other Expenses

No.
1.
2.
3.
4.
5.
tota
Items
Dustbin
Mops
vacuum
T-shirt for sale
broom
Quantity
Price per unit
Total cost
11
2
1
6
2
(RM)
2.50
5.20
150
30
7.00
(RM)
25
10.40
150
180
14
RM 379.40
3.16
3.17
TOTAL RAW MATERIALS FORECAST FOR THE FIRST YEAR IN 2016
Month
Sales(Collection)
%(Purchase)
January
February
March
April
May
June
July
August
September
October
November
December
Total
Year 2
(RM)
25,178.70
25,178.70
25,178.70
29,375.15
29,375.15
37,768.05
37,768.05
41,964.50
37,768.05
37,768.05
46,160,95
46,160,95
419,645
Increase %
Raw Material
Purchase(RM)
9.15
4.85
5
10
7
9
7
9
8
7
13
11
5/100
5%
1,920
1,018
1,049
2,098
1,469
1,888
1,469
1,888
1679
1,469
2,728
2,308
20,983
22,032
Year 3
Increase %
10%
24,235
SUPPLIER
Items
Supplier
Suppliers for Machine & Equipment
Factory,
No.12, Dongping Henggang,
Baiyun District,
Beijing City,
Suppliers for Furniture & Fitting
China.
Public Furniture,
No. 6F, Lorong Aman 2,
Jalan Lanang,
96000 Sibu,
Sarawak, Malaysia.
Supplier for Raw Material
Medan Mall Mukah,

Bandar Baru Mukah,
96400 Mukah,
Supplier for Other Expenses
Sarawak, Malaysia.
Chai Guan Minimarket,
96400 Mukah,
Sarawak, Malaysia.
3.18
OPERATING BUDGET
Item
Fixed Asset Expenses Monthly Expenses
Other Expenses
(RM)
33,081
(RM)
Machine and
equipment
Security and Fire
3,480
System
Furniture and Fitting
32,809
Salaries, EPF, SOCSO
(Operation Workers)
Raw Materials
Other Expenses
Total (RM)
Total
(RM)
5,890.5
1,920
69,370
7,810.5
379.40
379.40
= RM69, 370 + RM7, 810.50 + RM379.40

= RM77, 559.60
2.11
MARKETING BUDGET
Marketing budget is important to ensure the budget provides is appropriate with the business and
the cost of implementing marketing strategies in line with the financial so that it will reduce the
cost. Besides, it is useful for financial executive to forecast their financial planning.
Items
Sign Board
Fixed Asset (Rm)

1400
Other Expenses (Rm)
Total (Rm)
1400
Flyer
100 x Rm 1
100
(100 pieces)
Business Card
= 100
30/box = 30 x 5
150
(30 pieces)
Banner
= 150
200
200
Grand Opening
Newspaper
500
100
Total
500
100
2450
ADMINISTRATION
PLAN
4.1 INTRODUCTION OF ADMINISTRATION PLAN

Administration plan is the process of the first step in business to become more develop and
success in future. It also makes the business to become more productive and proactive which run
the organization efficiently and effectively. To ensure the administration can do successfully, he
or she should follow the fore element of management that is importance which is planning,
organizing, leading and controlling. The importance of this element is it will make our job
becomes easier, creative and innovative. It also helps to plan good management flow for
company.
In addition, participant of the other partner also importance as of accomplish the vision, mission
and goal of our company. This is because every partner can contributes and shares their ideas to
expand the business. The effectiveness of K-RATE BOX is based on administrative and planned
very systematically and follow by the proper planning before the business establish. This can
avoid barriers during process of opening the company.
Our company will put in all efforts towards the advancement for our business and try to promote
our company become the best K-Box in Sarawak. There are several thing that included in this
part is:
Business Strategy
Job Description
Administration Vision, Mission and Goals of Company
Employees benefits
Man power planning
Schedule of staff remuneration
List and Budget of Office Equipment
4.2 BUSINESS STRATEGY

Marketing Department
To ensure our target market is fully promoted and also the targets user is reached.
It also to ensure the advertisement of our company will attract our customer come to our
company.
To ensure our company provide the better services for customer.
Operation Department
To ensure every operation carried out at our K-rate is fully organized and need the
operation performed in our services such as K-rate equipment and facilities.
It also to ensure the raw material to produce in our services enough in unit per month.
To make sure K-rate equipment in good condition.
Administrative Department
To ensure our business operation and business management should be in systematic order
and stable condition.
It is also to ensure the schedule of remuneration employee should follow their
qualification and skill, every worker also has employees benefits, such as Employment
Provident (EPF) and Social Security Organization (SOCSO).
Financial Department
To ensure and responsible in handling all the cash flow and financial transaction.
Record all the transaction incurred in business in accounting ledger every month.
To ensure the budget is under control.
4.3 JOB DESCRIPTION

4.3.1 SCHEDULE OF STAFFS AND RESPONSIBILITIES
Every staff and workers at K-rate box have their own tasks and their own responsibility depends
on their position in the organization. The tables below are showing our Staffs responsibilities.
Position
Main task
General Manager
1. Act as leader of the business entity and
responsible for the employee welfare.

2. To make sure that the strategies,
objective and vision of the
organizational will be achieved.
3. Helps employees to solving problems
related to work and reassure that
employees performance meets the
organizations expression.
4. Responsible in developing goals and
objective of the organization.
Position
Marketing Manager
Dorothy Rhamet Baru
Main task
1. Decide and promoter the service to the
public by preparing the effective
marketing strategies to the business.
2. To planning the marketing activities
for organization.
3. To identify our competitors and
knowing about the strength and
weakness, so that we can make a

formula to compete with them.
4. To know the target market of our
service in order to satisfy needs and
wants of customers
5. Set the price of the service that is a
according to the standard of market
price.
6. In charge the introduction of the
service in the market. Marketing
manager will make the opportunity in
our business.
Position
Main task
Operation Manager
1. To prepare the production schedule to

enable the business to meet the desired
outputs.
2. Plan the flow process of the services
from the beginning until the services
reach the customers.
3. To ensure that the quality of services
meet the expectations required by the
organizational and customers.
4. To ensure the raw materials is enough
and sound system in good condition.
5. To make sure the business operation is
running well, systemically and
efficiently.
Position
Main task
Administrative Manager
1. In charge in five basic management

function planning, organizing, leading,
directing and controlling.
2. In charge to record any the
information of business.
3. Generate good relationship with
customer, other people and responsible
for the members.
Position
Financial Manager
Main Task
1. To organize all the companys
transaction and updating the
transaction from time to time.
2. As an advisor in financial aspect and
control all of the company expenses.
3. Responsible in handling all the cash
flow and financial transactions.
4. Dependable in searching the sources
of financial information.
5. Receive and record all the transaction
incurred in business in an accounting
ledger.
4.4 ADMINISTRATION VISION, MISSION AND GOALS OF

COMPANY
4.4.1 Organizational Vision
To maintain market leadership in the karaoke industry.

We want to provide a good services in order to gain customer satisfaction, more profit
and expand our business in Malaysia.
4.4.2 Organizational Mission
To serve comfortable environment in term of spaces and facilities in our place.
To be competitive karaoke company that creates value by delivering healthy, decent and
excellent services to the community to emphasize the companys goodwill and culture.
4.4.3 Organizational Goals

Business objective are short term planning characterized by more specific statement and
with definite time frame. In other word, business objective is what an organization plan
to achieve in short term. Our business objective are :
Increase management courses in skill development and employee coaching.
We always improve our services time to time in order to fulfil needs and wants of
customer in health and fitness industry.
4.5 EMPLOYEES BENEFITS

Workers incentive can be defined as a special rule to make it possible for people with disabilities
receiving reward system for their undying effort and diligence to contribute to its productivity by
undertaking their tasks well. The followings are the benefits given to the workers that work for
our business.
1. Salary
Salary is a fixed monetary reward paid to the workers on periodical basis.
It is paid on a monthly basis. Salaries given to the employees are based on
their position, performance, qualification, skills and experience. It will be
paid at the end of the month.
2. Employee Provident Fund (EPF)
Contribution to EPF is mandatory for all registered employers in
Malaysia. The contribution is at least 13% of an employees basic salary.
3. Social Security Organization (SOCSO)
Social Security Organization (SOCSO) is responsible for the
implementation, administration and enforcement of the Workers Social
Safety Acts 1969 and Workers Social Safety Regulation.

It provides social security protection by social insurance including medical
and cash benefits, provision of artificial aids and rehabilitation to
employees to reduce the sufferings and to provide financial guarantees and
protection to the family.

The SOCSO contribution is as much as 2% from the salary of all
permanent bases of workers or employees.

4. Operation Hours
The maximum working hours for employees is not more than 15 hour per
day. The working hours in our karaoke premise are Monday to Sunday is
16 hours and 17 hours on public holidays.
5. Working Hours
Day
Working hours
Total hours per day
nd
1 shift
2 shift
1st shift
2nd shift
Monday Sunday
10 am 5 pm
5 pm - 2 am
8 hours
8 hours
Public Holidays
9 am 5 pm
5 pm 3am
9 hours
9 hours
Our premise operates in 2 shifts basis. The board of directors will do
st
budgeting, financing, designing and ensure that the business run smoothly.
6. Bonus
Bonuses will be given to the employees based on the profits gained by the
company throughout the year. Our company will decide the bonuses based
on the shareholders meeting decision about the employees bonuses to
make sure it is fair regarding their responsibilities to their jobs.

7. Sick leaves and medical expenses
It is a certificate to approve sickness that can be obtained from registered
medical practitioners. Medical expenses will also be given to the
employees. If the employees take leave up to more than 14 days without
permission, we will not pay their wage and the opportunity for dismissal is
high.
8. Insurance
Insurance are given to workers, all premises or building bought or rented

as well as the transportation. This is to protect the companys properties in
case of accidents such as fire or breakdown.
4.6 MAN POWER PLANNING

Position
General Manager
Marketing Manager
Operation Manager
Financial Manager
Total
Number of staff
1
1
1
1
1
5
4.7 SCHEDULE OF STAFF REMUNERATION

The remuneration of each of personnel of all indirect workers has to be taken into consideration
beforehand. The remuneration includes monthly salary and all provided fund contribution as well
as work related insurance. The administrative plan has to include the remuneration schedule that
lists the salary and wages structure for each position. It is include Employees Provident Fund
(EPF) and Social Security Organization (SOCSO). The fund contribution for EPF by employers
is 13% of base pay and SOCSO contribution is 2% based on personnel monthly salary.
Position
No.
Monthly
salary
EPF (13%)
Amount
(RM)
General Manager
2, 000
260
2, 260
Marketing Manager
2, 000
260
2, 260
Operation Manager
2, 000
260
2, 260
Financial Officer
2, 000
260
2, 260
Administration
2, 000
260
2, 260
Officer
Total
11, 300
4.8 OFFICE LAYOUT
4.9 LIST AND BUDGET OF OFFICE EQUIPMENT

4.9.1 Furniture and Fitting
No.
Items
Quantity
Price/unit
Total
Vacuum
RM150.00
RM150.00
Chair
RM158.00
RM158.00
Table:
RM1829.00
Coffee
RM329.00
Office
RM1500.00
Total
RM2137.00
4.9.2 Stationery
No
1.
2.
3.
4.
5.
Items
Pen
Quantity
1 box
Price/unit
RM1.00
Total
RM24.00
Ream of paper
(24 pen)
1 box
RM8.00
RM96.00
Printer ink
File
Paper chip
(10 ream)
2
5
2
RM47.00
RM4.90
RM2.50
RM94.00
RM24.50
RM5.00
RM244.50
Quantity
1
1
1
1
Price/unit
RM157.00
RM68.00
RM1500.00
RM150.00
Total
RM157.00
RM68.00
RM1500.00
Total
4.9.3 Office Equipment

No.
1.
2.
3.
4.
Item
Printer
Phone
Laptop Acer
Fax
Total
RM1875.00
4.9.4 Business Registration

No.
1.
2.
Items
Business licenses
Business registration
Total
Price/unit
RM60.00
RM30.00
Total
RM60.00
RM30.00
RM90.00
Items
Water bills
Electricity bills
Phone bills
Streamyx bills
Total
Price/Month
RM50.00
RM1300.00
RM40.00
RM120.00
Total
RM50.00
RM1300.00
RM40.00
RM120.00
RM1510.00
4.9.5 Utilities
No.
1.
2.
3.
4.
4.10 Suppliers
Company Name
1. Public Furniture
Items
Furniture and fittings
2.Chai Guan
Stationery and office equipment
4.11 ADMINISTRATION BUDGET

Types
Office equipment
Fixed asset expenses
Monthly expenses
Other expenses
(RM)
(RM)
(RM)
1875
Salaries, EPF,
11300
Utilities
1510
Rent
8000
Business registration
30
Business licences
60
Stationeries
244.50
Furniture and Fitting

Total
1875
20810
2137
2471.5
Total expenses = RM1875 + RM20810 + RM2471.50

= RM25, 156.50
FINANCIAL
PLAN
5.1
INTRODUCTION TO THE FINANCIAL PLAN
The financial plan is the final step in the preparation of the business plan. A financial plan is a
plan that shows the long-term financial requirement in order to start a new business project. It is
the most crucial aspect of the business plan that involves determining the total project cost,
choice of sources of financial and preparation of financial projections in terms of pro forma
statement, which includes cash flow, income statement and balance sheet. The primary purpose
of financial plan is to show the financial requirement to start the business and to keep the
business profitable and liquid. The financial plan is critical to the success of your business planespecially if it is for the purpose of getting a bank loan. The cash flow forecast is arguably the
most important part of the plan- however, each of the other documents is important from
planning perspective. In addition, the financial plan should be supported by depreciation
schedules for every fixed asset owned as well as amortization schedules for loan and hire
purchase repayment. It includes all financial data resulting from operating budgets which are
marketing, operations and administration budgets. All the budgets are put together and presented
in the financial plan. Besides that, financial plan helps to make sure the business development is
on the right track and the business progress goes on smoothly
5.2
THE IMPORTANCE OF A FINANCIAL PLAN
A financial plan is a crucial to the overall business plan that is developed for a particular business
or project. Through the financial plan, we can see our business performance by evaluating its
profit and losses. Our business aims to have a good financial performance. The importance of a
financial plan are as below :
1. Long range view
In business it is easy to become focused on the crises or issues that must be dealt with on
a daily basis. The price for being too short-term oriented is that the owner may not spend
enough time planning what needs to be done to grow the business long-term. The
financial plan, with its forward looking focus, allow the business owner to better see what
expenditures need to be make to keep the company on a growth track and to stay ahead of
competitors. The financial plan is a blueprint for continual improvement in the company
and performance.
2. Measuring progress
Especially in the early stages of their ventures, small business owners work long hours
and deal with numerous challenges. It can be difficult to tell whether progress is being
made or whether the business is sinker. Seeing that actual results are better than focused
provides the small business owner needed encouragement. A chart showing steady
growth in revenues month by month, or a rising cash balance is a great motivating factor.
The financial plan helps the owner see, with the clarity of hard data, that the business is
on its way to being a success.
3. Cash management
Many business have monthly or seasonal variations in revenues, which translate into
periods when cash is plentiful and times when cash shortages occur. In building the
financial plan, the owner takes these cycles into account to keep a tight rein on in
negative consequences such as not being able to make payroll. By having a financial plan
that is structure, there is always a cash cushion which allows the business to take
advantage of opportunities that arise, such as the chance to purchase inventory rom
supplies at temporarily reduced prices.
4. Spotting trends
A business owner make so many decisions over the course of a month that it can be
difficult to tell which decisions resulted in success and which ideas or strategies did not
work. Preparing the financial plan involves setting quantifiable targets that can be
compared to actual results during the year. The owner can see, for example, whether an
increase in advertising expenditures led to the hoped-for jump in sales. Trends in the sales
of individual products help the owner make decision about how to allocate marketing.
5. Focused on expenditure
Conserving financial resources in a small business is a critical element of success. The
financial planning process helps a business owner identify the most important
expenditures, those that bring about immediate improvements in productivity, efficiency,
or market penetration, versus those that can be postponed until cash is more plentiful.
Even the largest, most well-capitalized corporations go through more plentiful. Even the
largest, most well-capitalized corporations go through this process, comparing the cost to
the benefits of proposed expenditure.
5.3
THE PROCESS OF DEVELOPING A FINANCIAL PLAN
The needs in order to develop a financial plan are followed :
Administrative, Marketing and Operational Expenditure

Project Implementation Cost
Sources of Funds Schedule
Fixed Assets Depreciation Tables
Loan Repayment Schedule
Hire Purchase Repayment Schedule
Pro Forma Cash Flow
Pro Forma Profit and Loss
Pro Forma Balance Sheet
The steps that need to be followed in order to develop a financial plan are as shown below :
Step 1: Gather all financial input.

Step 2: Prepare the project implementation cost schedule.
Step 3: Prepare the sources of finance schedule.
Step 4: Prepare the pro forma cash flow statement.
Step 5: Prepare pro forma income statement.
Step 6: Prepare the pro forma balance sheet.
Step 7: Perform financial analysis based on the above pro forma statements.
5.4
ADMINISTRATIVE, MARKETING AND OPERATIONAL EXPENDITURE
5.4.1
ADMINISTRATIVE BUDGET
ADMINISTRATIVE BUDGET
Particulars
Fixed Assets
Land & Building
Office Equipment
Fixed
Assets
5.4.1
Others
1,875
-
Working Capital
Salaries, EPF
Utilities
Rent
Pre-Operations & Other Expenditure

Other Expenditure
Deposit (rent, utilities, etc.)
Business Registration & Licences
Insurance & Road Tax for Motor Vehicle
Other Pre-Operations Expenditure
Total
Monthly
Expanses
1,875
11,300
1,510
8,000
-
1,875
Total
20,810
MARKETING BUDGET
11,300
1,510
8,000
2,137
90
245
2,472
2,137
90
245
25,157
MARKETING BUDGET
Particulars
Fixed Assets
Sign Board
Fixed
Assets
Monthly
Expenses
Others
1,400
-
Total
1,400
-
Working Capital
100
-
Flyer

Other Expenditure
Insurance & Road Tax for Motor
Vehicle
Total
1,400
100
100
950
-
950
-
950
2450
5.4.3
OPERATION BUDGET
OPERATIONS BUDGET
Particulars
Fixed Assets
Machine & Equipment
Security & Fire System
Furniture & Fitting
Fixed
Assets
Others
33081
3480
32809
Working Capital
Raw Materials
Carriage Inward & Duty
Salaries, EPF & SOCSO

Other Expenditure
Insurance & Road Tax for Motor Vehicle
Total
Monthly
Expenses
33,081
3,480
32,809
1,920
5,891
-
69,370
Total
7,811
1,920
5,891
379
379
379
77,560
5.4.4
DEPRECIATION METHOD
Straight Line
FIXED ASSETS
Furniture & fitting
Stationary
Signboard
Machine & Equipment
ECONOMIC LIFE
(YEAR)
10
5
5
10
10
5.5
SALES AND PURCHASES BUDGET
Sales and Purchases Budget

Month
Sales (Rm)
Purchases (Rm)
Month 1
25, 179
1,920
Month 2
25,179
1,018
Month 3
25,179
1,049
Month 4
29,375
2,098
Month 5
29,375
1,469
Month 6
37,768
1,888
Month 7
37,768
1,469
Month 8
41,965
1,888
Month 9
37,768
1,679
Month 10
37,768
1,469
Month 11
46,161
2,728
Month 12
46,161
2,308
Total Year 1
419,646
20,983
Total Year 2
440,628
22,032
Total Year 3
484,691
24,235
Increment Year 2 (%)
5%
5%
10%
10%
5.5
SALES AND PURCHASES BUDGET
Sales and Purchases Budget

Month
Sales (Rm)
Purchases (Rm)
Month 1
25, 179
1,920
Month 2
25,179
1,018
Month 3
25,179
1,049
Month 4
29,375
2,098
Month 5
29,375
1,469
Month 6
37,768
1,888
Month 7
37,768
1,469
Month 8
41,965
1,888
Month 9
37,768
1,679
Month 10
37,768
1,469
Month 11
46,161
2,728
Month 12
46,161
2,308
Total Year 1
419,646
20,983
Total Year 2
440,628
22,032
Total Year 3
484,691
24,235
5%
5%
10%
10%
5.6
PROJECT IMPLEMENTATION COST SCHEDULE
PROJECT IMPLEMENTATION COST & SOURCES OF FINANCE

Project Implementation Cost
Sources of Finance
Requirements
Cost
Loan
Fixed Assets
HirePurchase
Own Contribution
Cash
Land & Building

Office Equipment
1,875
Sign Board
1,400
1,400
Machine & Equipment

Furniture & Fitting
33,081
3,480
32,809
33,081
3,480
32,809
Working
1
months
Capital
Administrative
Marketing
Operations
Pre-Operations & Other
Expenditure
Contingencies
10
%
TOTAL
150
1,725
20,810
100
7,811
3,801
4,427
811
2,801
16,383
100
7,000
1,000
10,517
7,495
3,022
115,683
15,68
3
100,000
Existing
Fixed
Assets
5.7
SOURCES OF FINANCE SCHEDULE
Source
Equity
Cash Contribution :
Jerry Jampi Anak Giman ( General Manager)
Dorothy Rhamet Baru ( Marketing Manager )
Ignatius Presley ( Administrative Manager)
Justin Balang Razali ( Operation Manager )
Harrison Jhay Anak Kuyat ( Financial Manager )
Total
External Source
Loan (Bank Rakyat)
Total Source Of Finance
RM
20,000
20,000
20,000
20,000
20,000
100,000
15,683
115,683
5.8
DEPRECIATION OF FIXED ASSETS
Fixed Asset
Cost (RM)
Office Equipment
1,875
Method
Straight Line
Economic Life (years)
Year
1
2
3
4
5
Annual
Depreciation
375
375
375
375
375
Accumulated
Depreciation
375
750
1,125
1,500
1,875
Fixed Asset
Cost (RM)
Sign Board
1,400
Method
Straight Line
Year
1
2
3
4
5
Annual
Depreciation
280
280
280
280
280
Accumulated
Depreciation
280
560
840
1,120
1,400
Book Value
1,875
1,500
1,125
750
375
0
Book
Value
1,400
1,120
840
560
280
0
Fixed Asset
Cost (RM)
Machine & Equipment

33,081
Method
Straight Line
10
Year
1
2
3
4
5
6
7
8
9
10
Annual
Depreciation
3,308
3,308
3,308
3,308
3,308
3,308
3,308
3,308
3,308
3,308
Fixed Asset
Cost (RM)
Method
Year
1
2
3
4
5
6
7
8
9
10
Accumulated
Depreciation
3,308
6,616
9,924
13,232
16,541
19,849
23,157
26,465
29,773
33,081
Book
Value
33,081
29,773
26,465
23,157
19,849
16,541
13,232
9,924
6,616
3,308
0

3,480
Straight Line
10
Annual
Depreciation
348
348
348
348
348
348
348
348
348
348
Accumulated
Depreciation
348
696
1,044
1,392
1,740
2,088
2,436
2,784
3,132
3,480
Book
Value
3,480
3,132
2,784
2,436
2,088
1,740
1,392
1,044
696
348
0
Fixed Asset
Cost (RM)
Furniture & Fitting

32,809
Method
Straight Line
10
Year
1
2
3
4
5
6
7
8
9
10
Annual
Depreciation
3,281
3,281
3,281
3,281
3,281
3,281
3,281
3,281
3,281
0
Accumulated
Depreciation
3,281
6,562
9,843
13,124
16,405
19,685
22,966
26,247
29,528
0
Book
Value
32,809
29,528
26,247
22,966
19,685
16,405
13,124
9,843
6,562
3,281
3,281
Fixed Asset
Cost (RM)
Furniture & Fitting

32,809
Method
Straight Line
10
Year
1
2
3
4
5
6
7
8
9
10
Annual
Depreciation
3,281
3,281
3,281
3,281
3,281
3,281
3,281
3,281
3,281
0
Accumulated
Depreciation
3,281
6,562
9,843
13,124
16,405
19,685
22,966
26,247
29,528
0
Book
Value
32,809
29,528
26,247
22,966
19,685
16,405
13,124
9,843
6,562
3,281
3,281
5.9
LOAN REPAYMENT SCHEDULE
LOAN REPAYMENT SCHEDULE

Amount
15,683
Interest Rate
5%
Duration (yrs)
10
Method
Annual Rate
Year
1
2
3
4
5
6
7
8
9
10
Principal
1,568
1,568
1,568
1,568
1,568
1,568
1,568
1,568
1,568
1,568
Interest
784
706
627
549
470
392
314
235
157
78
Total Payment
2,352
2,274
2,196
2,117
2,039
1,960
1,882
1,804
1,725
1,647
Principal Balance
15,683
14,115
12,547
10,978
9,410
7,842
6,273
4,705
3,137
1,568
0
5.10
PRO FORMA CASH FLOW
Refer page 118 and 119
5.11
PRO FORMA INCOME STATEMENT
PRO-FORMA INCOME STATEMENT
Sales
Less: Cost of Sales
Purchases
Gross Profit
Less: Expenditure
Administrative Expenditure
Marketing Expenditure
Other Expenditure
Business Registration &
Licences
Other Pre-Operations
Expenditure
Interest on Loan
Depreciation of Fixed
Assets
Operations Expenditure
Total Expenditure
Net Profit Before Tax
Tax
Net Profit After Tax
Accumulated Net Profit
Year 1
419,646
Year 2
440,628
Year 3
484,691
20,983
22,032
24,235
398,663
418,596
460,456
249,720
1,200
3,466
90
262,206
1,260
3,639
288,427
1,386
4,003
784
7,592
706
7,592
627
7,592
70,686
74,220
81,642
354,766
64,880
0
64,880
64,880
369,669
70,959
0
70,959
133,853
405,727
78,964
0
78,964
214,803
2137
5.12
PRO FORMA BALANCE SHEET
PRO-FORMA BALANCE SHEET

Year 1
Year 2
Year 3
Non-Current Assets (Book

Value)
Office Equipment
1,500
1,125
750
Sign Board
1,120
840
560
Machine & Equipment

Furniture & Fitting
29,773
3,132
29,528
26,465
2,784
26,247
23,157
2,436
22,966
65,053
57,461
49,869
0
0
0
0
0
0
119,250
116,250
194,282
194,282
281,472
281,472
181,303
251,743
331,341
100,000
64,880
164,880
100,000
133,853
233,853
100,000
210,631
310,631
14,115
12,547
10,978
14,115
12,547
10,978
2,308
3,357
5,560
181,303
251,743
331,341
ASSETS
Other Assets
Deposit
Current Assets
Stock of Raw Materials
Stock of Finished Goods
Accounts Receivable
Cash Balance
TOTAL ASSETS
Owners' Equity
Capital
Accumulated Profit
Long-Term Liabilities
Loan Balance
Hire-Purchase Balance
Current Liabilities
Accounts Payable
TOTAL EQUITY &
LIABILITIES
5.13
FORECASTED PERFORMANCE
Particular
Year 1
Year 2
Year 3
PROFITABILITY
Sales
Gross Profit
Net Income Before Tax
Net Income After Tax
Accumulated Net Income
419,646
398,663
64,880
64,880
64,880
440,628
418,596
68,973
68,973
133,853
484,691
460,456
76,776
76,776
210,631
LIQUIDITY
Total cash receipt
Total cash payment
Excess (Deficit)
Accumulated cash
535,329
421,387
113,942
113,942
440,628
365,632
74,996
188,938
484,691
401,889
82,802
271,740
SAFETY
Owner equity
Fixed asset
Current asset
Long term liability
Current liability
164,880
65,053
113,942
14,115
2,308
233,853
57,461
118,938
12,546
3,357
310,631
49,869
271,740
10,978
5,560
FINANCIAL RATIOS
Profitability
Return on asset
Return on equity
Gross profit margin
35.79%
39.35%
95%
28.19%
30.09%
95%
23.83%
25.08%
95%
50
50
58
58
51
51
9.96%
9.06%
82
6.74%
6.32%
100
5.25%
4.99%
125
Liquidity
Current ratio
Quick ratio (Acid Test)
Safety
Debt to equity
Debt to asset
Time interest earned
5.14
FINANCIAL RATIO
Financial analysis is a technique to examine financial statements where the financial position and
performance of the business are examined. The basic steps in financial analysis are generating
the information from the financial statements and interpreting the results. Financial ratios are
used to compared figures from financial statement which other figures. There are various type of
financial ratio thet can be considered and they are classified into 5 categories :
Liquidity Ratio
Profitability Ratio
Solvency Ratio
LIQUIDITY RATIO
It refers to the availability of liquid assets to meet short term obligations. They measure the
ability of the business to pay monthly bills. The most commonly used liquidity ratios are current
ratio and quick ratio.
a) Current ratio
It can be determined by dividing the total current assets by total current liabilities. This
ratio will show a businesss ability to generate cash to meets its short term obligations.
CURRENT RATIO = CURRENT ASSET
CERRENT LIABILITY
Current Ratios
62
60
58
56
54
Ratio
52
50
48
46
44
1
2
Year
b) Quick ratio
It is also known as acid test ratio, where it measures the extent to which current liabilities
are covered by liquid assets. Calculation of liquid assets does not include prepaid
expenses because at times it can be difficult to them into cash quickly.
QUICK RATIO =
(CURRENT ASSET-STOCK)
CURRENT LIABILITY
Quick Ratios
60
58
56
54
Ratio 52
50
48
46
1
2
Year
PROBABILITY RATIO
It is very important in order to indicate a business financial performance. Investors are usually
interested in these as they want to measure the performance and growth potential of a business.
Some of widely used profitability ratios besides gross profit margin and net profit margin are the
return on investment and return to equity.
a) Return on Equity
It shows that the business has earned on its investment in the business. It can be calculated by
dividing net equity by owners equity.
RETURN ON EQUITY =
NET PROFIT
EQUITY
Return on Equity
45.00%
40.00%
35.00%
30.00%
25.00%
Percent
20.00%
15.00%
10.00%
5.00%
0.00%
1
2
Year
b) Return on Assets
It is widely used to evaluate a companys operational efficiency. It is also known as operating

profit margin. This ratio can be used to look for trends and compare it with other companies. An
increase in return on sales indicates that the company is growing more efficient.
RETURN ON INVESTMENT =
NET PROFIT
TOTAL ASSETS
Return on Assets
40.00%
35.00%
30.00%
25.00%
Percent
20.00%
15.00%
10.00%
5.00%
0.00%
1
2
Year
SOLVENCY RATIO
It helps entrepreneur to measure the degree of financial risk that this business faces. This type of
ratio can help indicate this level of debt and decide whether it is appropriate for the business.
One of the commonly used solvency ratios besides debt to total assets and time interest earned is
debt equity.
a) Debt to Equity
It shows the proportion of the debt financing to the owners equity contribution.
DEBT TO EQUITY =
LONG TERM LIABILITY
Debts to Equity
12%
10%
8%
Percent
6%
4%
2%
0%
1
2
Year
OWNERS EQUITY
b) Debt to Asset
Ratio measure the percentage of the business assets financed by creditor relative to the
percentage financed by the entrepreneur.
DEBT TO ASSET = TOTAL LIABLITY

SHAREHOLDERS EQUITY
Debts to Assets
10%
9%
8%
7%
6%
Percent
5%
4%
3%
2%
1%
0%
1
2
Year
c) Time Interest Earned

Indicates the extend of which earning are available to meet interest payment.
TIME INTERES EARNED =
NET INCOME
INTEREST EXPENSES
Times Interest Earned

140
120
100
80
Times
60
40
20
0
1
2
Year
6.0
CONCLUSION
We have made a study and have seen that there are many oppurtunities and benefits to be
obtained along with the development of our country at present. The demand for the karaoke
industries will be increased if there is increasing of social awareness by the population in our
country, especially Sarawak. Although there is many competitors in Sarawak itself, which take
part in this business, we think that our oppurtunities and chance to enter this business still have a
great potential in order for us to go further, and also open a few more business in the future. As a
Bumiputeras, we should be innovative and creative to suceed in managing our business. In
future, we plan to involve in other activities such as become a supplier for exercise equipment
and we also plan to make our company as the biggest company in the industry. In addition, we
beleive that this business will suceed for a few years later from now and we also beleive that this
business will be expended more than on what we expected.

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1.

Madam Siti Farah Bt. Lajim,

We really appreciate your kindness in guiding and advising us throughout this

(Jerry Jampi Anak Giman)

(Jerry Jampi Anak Giman)

1.3 INTRODUCTION TO BUSINESS PLAN

Date: 25 September 2015

3. For the purpose of profits contribution it will be given according to ratio of

5. However, any partner is allowed to contribute additional amount of capital more

Our company is in a business form of partnership, Partnership is incorporated under the

FACTORS IN SELECTING THE PROPOSED BUSINESS

Several reasons had led us to choose entertainment as our proposed business. As we

FUTURE PROSPECTS OF BUSINESS

: Represent k-rate karaoke have classical song.

: It show that our k-rate karaoke room has decorate by

: It will show that we serve customer fully satisfied by their

1.12 Business Background

1.13 PARTNERS PROFILES

Jerry Jampi Anak Giman

Mobile phone number :

Senadin, 96000 Miri, Sarawak

Bachelor Degree in Marketing (UiTM)

MARKETING MANAGER OF K-RATE KARAOKE

Dorothy Rhamet Baru

Mobile phone number :

Master Degree in Marketing (UiTM)

Speak fluent English

OPERATION MANAGER OF K-RATE KARAOKE

Justin Balang Razali

Mobile phone number :

ADMINISTRATION MANAGER OF K-RATE KARAOKE

Ignatius Presley Anak Berain

Mobile phone number :

FINANCIAL MANAGER OF K-RATE KARAOKE

Harrison Jhay Anak Kuyat

Mobile phone number :

1.14 ORGANIZATION CHART

Harrison Jhay Anak Kuyat

Dorothy Rhamet Baru

This building is nearby in

2.1 INTRODUCTION OF MARKETING PLAN

In the entertainment industry, organizers are responsible to provide programs, service,

2.3 SERVICE DESCRIPTION

2.4 TARGET MARKET

2.5 MARKET SEGMENTATION

Urban & Suburban : Mukah

Male & Female

RM800 and above

Highly influenced by peer

Daily basis, weekly basis,

2.6 MARKET SIZE

The calculation of our market size is as follow:

60% of them practice entertainment:

Assumption of only 35% prefer going for karaoke session:

Karaoke sessions divided into two categories that are:

For daytime (50%)

For night time (50%)

TOTAL MARKET SIZE

2.7 Market Competition

its own regular

The fee is quite high.

Bungai Berduri And Mas

Responsible for their