Hi, fikri, I feel respect when see all the statements of account that u have made.

I think u spend quite a lot of time on it. But I need ur help to do some correction because I m not really good in account and difficult for me to figure out the figure in the account. Firstly, four of us will become the management of the company; means that we need to hire workers to work at our company. The calculation for expenditure should include the salary for the worker. Maybe make an assumption that we got 5 workers include the delivery and customer service. Next is about the years in your calculation. Why is it starts from 2010? Since our business is a new business and we are just going to submit our proposal, it shouldnt start earlier than this year I think...Maybe make it 2012, 2013 and 2014? And some expenses like the decoration or other things can we just make it into one category? Means we don need to specify like carpet, lamp, cabinet and so on for their individual price..just made a conclusion on the total price we need for the facilities and decoration for the shop? Will it sounds better? Lastly I think the promotion shouldnt make during convocation. We can make it at supermarket and some places. Dont focus on students only. Still got other customer groups such as the budget hotel, some companies who need the mini refrigerator in their pantry and so on..and some ppl who wish to buy it to picnic or party perhaps? Just edit some of the concept and the number on the figure. Thanx ya. =)

7. Financial Plan. High-level financial plan that defines financial model, pricing assumptions, and reviews yearly expected sales and profits for the next three years i. 12

8. Resource Financial,

Requirements. distribution,

Technology

requirements. etc.

Personnel External.

requirements. requirements

promotion,

(Products/services/technology required to be purchased outside company ) i. 10

9. Risks (Summarize risks of proposed project). Addressing risk (Summarize how risks will be addressed). Rewards (Estimate expected pay-off, particularly if seeking funding) i. 10

7.0

Financial Planning

Financial plans are very important in determining the feasibility of the business. The following sections will outline the financial plan that defines financial model, pricing assumptions, and reviews yearly expected sales and profits for the next three years.

i. No. 1

The below table shown the asset available in the company in year 2012: Amount 1 lot RM 600,000

Asset Land (shophouse)

2 3

Office equipments Van 1

30,000 90,000

ii. No. 1 2 3

Pricing List of MINI FRIDGE Business: Price (RM) RM 300.00 / item RM 150.00 / item RM 80.00 / item

Fridge Type Mini Fridge Mini Fridge second hand USB Mini Fridge

iii.

Estimation Revenue The below table is the estimation revenue in a month for the first year 2012.

No.

Fridge Type

Price (RM)

Amount (item)

Total (RM) 22,400 15,000 37,400

Sales

1 2 Total

Mini Fridge Mini Fridge second hand

RM 280.00 / item 80 RM 150.00 / item 100 180

The below table is the estimation revenue in a month for the upcoming year in selling USB mini fridge No. Fridge Type Price (RM) Amount (item) 1 USB Mini Fridge Total RM 80.00/ item 120 120 Total (RM) 9,600 9,600 Sales

7.1

Budget Expenditure in year 2012 1. Initial mini fridge and second hand mini fridge cost. Estimated is 43% of the sale.

2. Initial USB mini frige Estimated is 40% of the sale.

3. Utilities Estimated is 10% of the sale.

4. Partners salary Four partners are involved in the business and each one salary is RM3,000. Total partners salary is RM12, 000. 5. Transportation Estimated is 5% of the total sale.

6. Business license RM 200 every year.

7. Publicity Budget RM5, 000 every year.

8. Insurance Estimated is RM1,500 per months

9. Cost of maintenances Estimated is RM 3,000 per years to maintenance like transports, office facilities 10. Loan interest

10% from loan.

11. Government tax 25% tax on the net profit every year.

12. Loan payment RM10, 000 per years

13. Loan of RM100, 000 being done in year 2010.

7.2

Other Information 1. Sale is estimated RM448, 800 in year 2012 and increasing around 10% for next each year. 2. Sale of USB mini fridge for future plan is estimated increase in sales 10% per year. 3. Partners attribution is RM10, 000 for each person.

7.2

BREAK-EVEN ANALYSIS

The break-even analysis shows the number of units of sales required for the facility to make profit over the fixed cost. The break-even point is the point at which revenue is exactly equal to costs. That is, the break-even units indicate the level of sales that are required to cover costs and the break-even revenue indicates the ringgit of gross sales required to break-even.

Our break-even analysis is based on the average of the first year for total sales of mini fridge, total cost of sales and all operating expenses. These are presented as per-unit revenue, perunit cost, and fixed costs. We realize that this is not really the same as fixed cost, but these conservative assumptions make for a better estimate of real risk.

Break-even Analysis Monthly Units Break-even Monthly Revenue Break-even Assumptions: Estimated Monthly Fixed Cost 260 20,210.00

RM

RM

11,666.00

Break Even Analysis

10000 8000 6000 4000 2000 0 -2000 -4000 -6000 -8000 -10000 -12000 Units 0 2 4 6 8 10 12 14 16 18 20 22 24

7.3

Details for Estimation Sales 1. According to marketing analyze, mini fridge sale for each month is RM37,400 but total mini fridge sales will be influent for a certain period. This is due to the demand for mini fridge increase during special period like early opening of university, where a lot of new students register at university around area of Lembah Klang. Usually this certain period are happening around August or September for each year. It is estimated the increasing around 40% of total normal sales.

2. However, our production will decrease during the end of semester for every year which happens around February until May. There is estimated decreasing of around 30% of total normal production. 3. While for other period consider as normal selling. 4. For the USB mini fridge sale also strongly influence during entrance of university freshie. It is estimated around 10% of total sales during this certain period while USB mini fridge usually constant in its sale for other period since this product are portable and can be attached to the computer or any devices with USB port. *this is statement only and all I said here doesnt influence the financial calculation whether increased or decreased percent of total priceso if u want to add other reason just state herefor campaign our product to budget hotel etcthe sale not influence for a certain timeso I didnt wrote herefor the workers informationI just see 4 others group bp and they not stated workers or personal requirement in the question 8

7.4

Pro-Forma Income Statement

2012 Mini Fridge sales USB Mini Fridge sales

(RM) 448,800

2013

(RM) 493,680 115,200

2014

(RM) 543,048 126,720

Total

448,800

608,880

669,768

(-) Expenses Initial mini fridge cost(Estimated is 43% of the sale) Initial USB mini frige(Estimated is 40% of the sale) 46,080 50,688 192,984 212,283 233,510

Utilities (10%* Total sales)

44,880 72,000

60,888 72,000

66,977 72,000

Partner

salary(4

persons*

RM1,500*12 months) Transportation(5% Total sales) Business license Marketing strategic Maintenance fee Loan interest (RM100000*10%) Insurance (RM1500*12 months) Taxable profit (-) Tax (25%) Net profit Net Profit/Sales(%) 22,440 200 5,000 3,000 10,000 18,000 30,444 200 5,000 3,000 10,000 368,504 18,000 80,296 20,074 60,222 16.34 457,895 150,985 37,746 113,238 24.73 33,488 200 5,000 3,000 10,000 18,000 492,863 176,905 44,226 132,679 26.92

7.5 Pro-Forma Cash Flow

2012 Cash received from: Operation cash Sales

(RM)

2013

(RM)

2014

(RM)

448,800

608,880

669,768

Loan Partner attribution

100,000 40,000

Total

588,800

608,880

669,768

Payment Initial mini fridge cost(43% of the sale) Initial USB mini fridge(40% of the sale) Utilities (10%* Total sales) Partner salary(4 persons* 72,000 22,440 200 5,000 3,000 10,000 72,000 30,444 200 5,000 3,000 10,000 18,000 72,000 33,488 200 5,000 3,000 10,000 18,000 44,880 60,888 66,977 46,080 50,688

192,984

212,283

233,510

RM1500*12 months) Transportation(5% Total sales) Business license Marketing strategic Maintenance fee Loan interest (10%)

Insurance (RM1500*12 months) 18,000

Office equipments Van (asset) Land(RM 50000 / year)

30,000 90,000 50,000 50,000 50,000

Repayment loan

10000

10000

Total payment Cash balance

538,504 50,296

517,895 90,985

552,863 116,905

Initial balance Final balance (Net Income)

0 50,296

50,296 141,281

141,281 258,186

8.0 8.1

Resource necessity Resource Requirements. a) Mini Fridge For starting the business, our company need to get for the mini fridge from the supplier. The supplier is Styles Creative Ltd. which is the biggest producer in

UK and the second hand item can be acquired from Singapore. This company is a main producer for mini fridge product and a lot of information of their product can be obtains from web www.minifridge.co.uk. The price for the mini fridge is RM 200 for the new one and RM 100 for second hand item. USB mini fridge can be acquired from Ningbo Bosheng Electric Co., Ltd. which is a company from China and the price that we can obtained for one mini fridge is about RM 50 per item.

8.2

Sales Accommodation Efficient sales of product not only contribute because of shop and decoration but also need suitable accomodation. That accomodation helps minifridge sales operation with better, quick and effective. Among accomodation needed is:

a) Van This is the most important accomodation to our company which is used to take and send product. It needed to occupy as many as possible in order to save cost of our business. We decided to buy Toyota Van Hiace V05 with prices about RM 90,000

b) Tables, Banner, and equipments for outdoor promotion Sales of our product mainly focuses on outdoor promotion which is we will go and tour universities in Malaysia especially Lembah Klang area and sales our products to students. We will promote and sales our product mostly during convocation time. Tables, banner, and equipments here needed to be portable and not an our office facilities. We estimated the cost for this facilities about

RM2000. c) Mini Fridge Equipment and Attractor Mini Fridge and USB mini fridge are specific in design and their function. Because of the small as its main attraction, our company were trying to highlight this criterion in order to attract buyers to subscribe this products. So, lightning, cupboard, desk, carpet, and cabinet play an important role in order to highlight our products. We estimate the cost to buy of this item around RM 15,000.

8.3

Maintenance equipments In order to sell a quality product with best condition and fulfil our customers desire we will inspect our product annually. Yearly maintenance will be doing to our properties like van, outdoor promotion equipments, lightning at our shops and second hand product which is when it needed to replace its gas. We estimates the cost for maintenance about RM 3000 per year.

8.4

Office equipments

TYPE Personal Computer Printer, Photostat and

AMOUNT 4 2

scan machine Facsimile Machine Telephone 1 2

Furniture Stationeries TOTAL

2 set 11

8.5

Promotion In order to promote our company, at early stage of promotion, we will introduce our company and the product from this company by using a newspaper and website. At the newspaper, we will mention the type fridge that our company is selling and our competitive price compared to others competitors. And through website which is we will mention the location of our shop, our mission on satisfying the customers and also the type mini fridge we sell. Through this website, the customer also can make and order by filling the information needed in the website. We also will advertise our products when there are carnival whether it is in universities, non-government carnival or fiesta which is we feel that program is suitable for our promotion. Since activities to promote our product to students held only at a certain of time, we also advertising our fridge to the budget hotel, some companies who need the mini refrigerator in their pantry and people who wish to buy it to picnic or party.

Critical risk i. Financial risk

Financial risks increase with increasing intensity. In more intensive systems, the probabilities of loss, and cost of such losses if they do occur, are likely to be higher. Although average returns may be higher, they are subject to larger

fluctuations in response to factor prices, market prices, and losses from disease or environmental factors. Although the risks can be reduced through good sitting, design, technology, and management, serious disease outbreaks can be a problem on all types of products. Municipalities occasionally default as well can be a financial risk, although it is much less common.

ii.

Potential of existing new competitors

There are a few competitors right now for the mini fridge selling in this country. But in the future, new competitors will exist with the same product. Ways to compete and maintain our business with the existing and new competitors is by maintains our reasonable prices and to improve the quality of the product. We also need to do effective marketing campaign and also establish our long-term relationships with customers.

iii.

Labor risk

Lack of specialized know-how on the part of promotion managers and workers is a major risk factor. We need to make sure that the employer has solid experience in promotion and proper management practices. The proper training of personnel is important and may significantly reduce the risk loss of production sales during outdoor promotion. Management procedures should include safety margins that

are realistic given past experience and industry averages, while also taking into account the degree of know-how on the part of employees and managers.

iv.

Risk of disease

The risk of disease should be appraised thoroughly for fridge because some fridge may use harmful gaseous for its chiller. Any leakage or damaged in fridge may harmful users. Even today technology have developing gaseous used for chiller at low rates of toxic gaseous, but it still a toxic gas that harmful to users. However, today still there are no cases reported that people get sick because of fridge gaseous because percentage of safety for usage of fridge is high.

v.

Unfavorable accidents Although those unfavorable hazard such as fire, flood, stock stolen there are covered by insurance, but it will still affect the operation of company, especially within the first or two years in the beginning of business. Once the accidents happen, our company would have to set up everything start from beginning again, this may cause a big financial problems to company. Thus, to minimize the impacts from those accidents, our company has to always caution with the electrical system in company, monthly maintenance on computers in company, and also emergency passage to transfer the stocks once fire or flood.