Business Proposal: Business Plan
Universiti Sains Islam Malaysia Islamic Science University Of Malaysia ????? ?????? ?????????? ??????? ENTREPRENEURSHIP MGC 4013 Business Plan Instructor: Prof.
Madya Dr Kalsom Bt Abd Wahab Member Group: Muhammad Shukri Bin Sahari 1080077 Amirul Nizam B Hamat Kamis1080079 Mohd Arif Bin Hamzah1080059 Ahmad Syubaili bin Mohamed1080078 Mohd Rafizi Bin Ruslan 1080064 Abdul Aziz Bin Mohamad 1080069 INTRODUCTION Nilai Sport Centre is established as a result of the survey and research made by the Nilai Sport Enterprise to add another facility for the people in Nilai, Salak Tinggi and Sepang.The plan made for this business is because of the increasing potential and demand of futsal. The Nilai Sport Center will start to operate fully on January 2012. The factor that had influenced the establishment of the business is because of the demand of the futsal game that is increasing and also the need of creating a new place for the teenagers to hang out at. To start the project, we need enough capital to make the cash flow and the operation smooth. We need loan about RM 70 000 and money from the share holder.
Before deciding to create the business, survey and analysis are done to reveal the potential of this business. The population and lifestyle of the people, especially the teenagers in Nilai, Salak Tinggi and Sepang will lead Nilai Sport Center to be the choice for the teenagers and adults also and thus, make the business profitable. BUSINESS CONCEPT Executive Summary Name of business : Nilai Sport Centre Nature of business : Services Industry profile : Sports (futsal) Location of the business : Nilai Sport CenterKawasan perindustrian Nilai 3, 71800 Nilai Negeri Sembilan Darul Khusus Date of business commencement: January 2012 Factors in selecting the proposed business: 1. Nowadays, futsal is beginning to gain popularity in the society. It is getting attention by many people now especially by the teenagers also adults. Therefore, business that is based on this sport can be profitable.
2. Demand and potential for this sport are increasing and become more attractive among teenagers and adults. 3.The good facilities around the area can be the attraction for people to visit the center. 4. Based on survey had been done, students and also adults in Nilai, Salak Tinggi and Sepang want a futsal centre that are comfortable and have all the facilities needed such as changing room for female and male, cafe and so on.
5. Strategic location where nearby to colleges and university. 6. Lack of recreational or sport centre in Nilai, Salak Tinggi and Sepang. Future prospects of the business: 1.
The Nilai Sport Enterprise plans to open up another franchise after 3 years of operating this business. . The Nilai Sport Enterprise should be able to buy its own premise in 3 years after the operation of Nilai Sport Center so that it will not have to rent for a premise for the business. 3. Futsal business will continuously get place in the society for it is suitable for now and in the future ahead. Therefore, this business has a good opportunity to gain prosperity.
Company branches for this business can be built at other places where the areas are given attention by teenagers and adults. COMPANY BACKGROUND Name of business : Nilai Sport CentreBusiness address : Kawasan perindustrian Nilai 3, 71800 Nilai Negeri Sembilan Darul Khusus Correspondence address : email: [email protected] com Website: www. nsc. com Telephone number : 06-6573564 (office) 019-6113830 (h/phone) 06-6573600 (fax) Form of business : Partnership Main activity : Provided a service for playing futsal sport and cafe.
Date of commencement : January 2012 Date of registration : December 2011 LOCATION OF BUSINESS Our business location of Nilai Sport Enterprise will be situated at the area of Nilai 3, Negeri Sembilan Darul Khusus. The location of our business is very strategic where it is surrounded with settlement, industrialization, and business area. It has a complete infrastructure like fully-equipped electrical, phone and water utilities. The Nilai Sport Center is located nearby the places where people often hang out to Nilai 3.The center is situated at a well rapid growth area which is good for business opportunities.
The target for Nilai Sport Center is the teenagers and adults around Nilai, Salak Tinggi and Sepang especially the college and university students. So this location is chosen because it is not too crowded and congested. Besides that, he premise is a warehouse that is rented and the payment is made every end of the month. The premise is safe for operation for it has been approved by the Fire Department. JUSTIFICATIONNilai Sport Enterprise is a company that tries to build its own market through their own concept. Although this concept still new in this country, this company will have minor difficulties to get their profits.
As the first step to realize the plan, this company will establish Nilai Sport Center. This company contains 6 major shareholders that also are the head of this business. The combination of these people will provide a strong structure of organization to this company. All of them have some experiences and skills to manage and also to enhance the business to the upper level.Because all of them are graduated from local or overseas universities, this company can really rely on them to gain experience and apply what they had learned during studies. Through the survey and rough analysis that been made, this business will stand for quite long time because the lack of competition around the nearest area.
So, it’s not possible to this company to gain lot of profit during new stage of the establishment. Through the well organized organization structure, this company is ready to facing the unpredictable entrepreneur’s world.As this situation happen, this company can easily achieve their objective to gain profits as much as RM900, 000 in a year. This company sooner can reach their vision to expand their business through franchises all around Malaysia and will break through the international market. MANAGEMENT PLAN Share Arrangement: Members that are legal valid for membership can posses to appoint another person to be the share partner. This arrangement has to be agreed by other members.
If one of the members is bankrupt or creates a lot of problem to the business, then the members will have to right to dismiss that person with the majority voice.Business Organization: These are the highest positions in the business: 1. AMIRUL NIZAM BIN HAMAT KAMIS GENERAL MANAGER 2. MOHD RAFIZI BIN RUSLANASST GEN. MANAGER 3. MUHAMMAD SHUKRI BIN SAHARI ADMINISTRATION 4.
MOHD ARIF BIN HAMZAH OPERATIONAL 5. ABDUL AZIZ BIN MOHAMAD MARKETING 6. AHMAD SYUBAILI BIN MOHAMED FINANCE A)MISSION AND OBJECTIVES OF THE ORGANIZATION Missions i) To maximize the profit and minimize the cost of operation. ii) To ensure every worker does their jobs efficiently, so that the output of our products will satisfy by our customers and also be the largest futsal center and cafe in Malaysia ii) To fulfill the need of the customers and guarantee the best product and service for the customers, iv) To increase the market by controlling and increasing the quality of our products. Objective To gain profit as targeted as much as RM900,000 in a year Vision To have franchises of the business all over Malaysia and to expand it to overseas Strategies i)Do the good planning for our business to make sure that the profit target can be achieved by us and the cost of service operations can be minimized without decreasing the quality of our products and services, i)The administration will be inspected so that every worker does their job efficiently.
Bonus will be given as a reward for their good performances in helping our business in order to reach our target, iii)To ensure the quality of the work, marketing will be run on its own rail, iv) The administration will only select the workers with good personality, hardworking and have the right qualification to fill in the job vacancies at the Nilai Sport Center. This action can ensure that the business will not suffer from any disciplinary problems caused by the workers. B) ORGANIZATION CHART C) LIST OF ADMINISTRATION PERSONNELPOSITIONNUMBER OF PERSONNEL GENERAL MANAGER1 ASST GENERAL MANAGER1 ADMINISTRATION MANAGER1 OPERATIONAL MANAGER1 MARKETING MANAGER1 FINANCIAL MANAGER1 WORKERS6 TOTAL12 D) SCHEDULE OF TASK & RESPONSIBILITIES 1. SPECIFICATION OF THE POST OF POSITIONS Post of The Position: GENERAL MANAGER Responsibilities: – i) To plan, implement and control the overall management of the business ii) To plan and monitor the strategic progress of the business iii) To be accountable for the overall performance of the business iv) To translate every business files to ensure that the business runs in a proper track.Description of the job:- i) To control every daily business operation and run in a proper and systematic way.
ii) To ensure every customer is satisfied with the product and service provided. iii) To ensure every worker have high motivation and able to give full of commitment to the organization, iv) To ensure every worker can work well with each other, v) To balance a good working environment either inside or outside the organization. Post Of The Position: ASSISTANT GENERAL MANAGER Responsibilities: – i) To control the flow of business in over view. i) To manage all the business transactions, to ensure that the documents are in a proper and systematic conditions, iii) To coordinate all the department functions in the organization in achieving goals monthly and yearly, iv) To translate every business files to ensure the business runs in proper track. Post of the Position: ADMINISTRATION MANAGER Responsibilities: – i) To help the General Manager do the maintenance of the office administration, ii) Responsible in choosing post of the position for the workers, iii) To keep an eye on the workers’ needs, v) Manage the cost of administration. Description of the job:- i) Choose the right workers from the interview that is conducted by himself.
ii) To ensure that there are enough workers for the organization so that the quality and the productivity of the business can be increased, iii) Administrate with full of dedication about his workers needs, iv) To ensure all the workers are registered with EPF and SOCSO. v) Involved directly in the office management. Post of the position: ADMINISTRATIVE ASSISTANT Responsibility :- )To assist the administrative manager Description of the job : i) To ensure that he/she assists the administrative manager in managing the administration. Post of the position: MARKETING MANAGER Responsibilities: i) To find and do analysis about the size and terms of marketing. ii) To find out how to increase the sales of organization.
iii) Do all promotions. iv) Do analysis about marketing and the expectation of the sales. Description of the job:- i) Do the promotion from time to time. ii) Try to get as many customers as possible ii) To give information to the customers and make report to the General Manager about the position of the office marketing. Post of the position: OPERATION MANAGER Responsibilities: – i) To control and do all operation activities. ii) To control all the flows of incoming service and payment of services.
iii) To control the activities of received items and inspect every of the items that ordered. iv) To ensure all operations of servicing the computer work systematically. v) Making contacts with the suppliers. vi) To control all workers under the managers. Description of the job:- i).
Responsible to the workers in order to ensure quality of the activity in servicing and maintaining the computers, ii) Always consult with Marketing Manager to ensure the organization has enough stocks, iii) Ensure all operations in the organization are according to the office regulations. Post of the position: FINANCIAL MANAGER Responsibilities:- i) To manage financials, investments and the income of the business in over view, ii) To find the strategies of financial to increase the business developments, iii) Do the analysis and report about the financial position of the business, iv) To serve the financial transactions every end of the year.Description of the job:- i) To control the finance of the business from time to time. ii) To control all transactions of the business so that no fraud will occur in the organization, iii) To control the flow of money in all of the office operations, iv) To handle the calculation budget and profits for the business. v) To update all financial records and statements regarding to the cash withdrawals and cash received, vi) To approve all of the other departments financial budgets. Post of the position: CASHIER Responsibilities and descriptions of the jobs: i.
Take order from the customers i. Make sure that all equipments are in the situation iii. To receive the payment of product and service from the customers, iv. To make sure there is no fraud in handling the cash. Post of the position: WAITER/WAITRESS Responsibility:- i) Responsible in serving the customers. Description of the Job:- i) He/she will be serving food and drinks to the customers of the cafe, ii) He/she will have to try to fulfill the customers’ requests.
s Post of the position: CLERK Responsibility and descriptions of the jobs: i. Typing the letter head, form and letter ii. Update file and registration book ii. Do all of the inserting, updating and modification in the database of the organization, iv. Type formal letter, do invoice and other transactions of business as the order from the Financial Manager and Administration Manager, v.
Helping the waiter/waitress in serving the customers at the cafe. E) INCENTIVE OF WORKERS Nilai Sport Center will provide incentive for their workers. This action is very important, in order to give motivation among the workers. Beside that, from the incentive that is given, it can help the organization to increase the quality of their service and product.Salary Salary will be given based on their qualification, labor market, post of position and their experience in working. Increasing the Salary The organization will increase the salary of the workers from time to time according to the position.
Their salary will be increased based on several factors such as their service period, their effort to the company, and their support and commitment to the company. Bonus Bonus will be given based on the company profits. The payment will be made at the end of accounting year. Annual Leave The company will give annual leave to the workers for 14 days.Medical / Maternity Leave Medical certificate must be shown from our company panel clinic.
For maternity, the annual leave is for 45 days. Employee Provident Fund (EPF) 13 percent from the employees’ salary is a part of their EPF payment. Socso 2 percent from the employees’ salary will be a part of their SOCSO payment. Insurance Our workers will be provided with insurance by the Takaful Insurance. Premium rate of 6 percent from the monthly salary will be charged once in a year.
MARKETING PLAN The marketing activity is to satisfy the customers’ needs and wants, as well as to gain profit for the business.The American Association (AMA) defined marketing as the process of planning and executing conception, pricing, promotion and distribution of idea, good and service to create exchanges that satisfy individual organizational objectives. Marketing is an important element to improve company sales and corporate image of the company. Marketing concept is held to the philosophy that all marketing strategies must be referred in order to satisfy the customers’ needs and wants, in addition to gain profits for the business. It is also to assist management control and monitor the implementation of strategy. In conformity with the ustomers’ satisfaction, there are several efforts that is done by companies and it depends on the company themselves to precede it as long as it does not differ from the religion regulations and human ethics.
Positive and negative impact that might arise from the formation of the business should be considered as well. Marketing Objectives The objectives of Nilai Sport Center are: •To ensure that the service of futsal game and cafe with internet connection given to the customers are the best to attract the attention of the customers. •To ensure that the company reach its goals of the target market and also in the sales planning. To ensure that the business grows well in the time duration as the company had planned. •To ensure that the company is in good condition so that it will be ready and able to compete with other competitors in the market and to conquer the market share.
•To introduce the futsal game to the society especially to the teen groups so that they will be interested to play futsal and get involve in healthy activities which are held at the Nilai Sport Center. •To be the center where the society prefers to spend their leisure time, either at the futsal courts or the cafe with broadband internet connection.Product and Service Description Futsal game: The Nilai Sport Center provides futsal courts and also futsal equipments to be rented by customers who want to play the game. Basically, the leisure center will have four futsal courts, provided with a few rows of seats for the game watchers. There will also be changing rooms for the futsal players.
Cafe with the broadband internet connection: The cafe is equipped with broadband internet connection where there will be about six computers provided for the customers who would like to surf the internet.Somehow, for those who own laptops, they can surf the internet at the cafe for free using their own laptops. There will be various types of foods and drinks provided for the customers to choose. Target Market To ensure that the product and service that Nilai Sport Center provides will fulfill the customers’ need and at the same time to make the business profitable, the company must pay attention to the marketing effort in targeting the customers, beginning with the customers with low income to the customers with high income.This is to avoid from putting the marketing efforts out of the company’s ability and to make sure the marketing objectives are fulfilled.
To ensure that the marketing is successful in satisfying the customers and at the same time profitable, the company needs to focus the marketing to the target customers. Nilai Sport Center will use the market segmentation that includes Geographic, Demographic and Psychographics structure. Geographic Segmentation Geographic segmentation is an important basis for most marketers. It is a process of dividing the market into different geographical units such as the nation, states and religions.Our target customers are the teenagers and people who are at the early stage of adulthood in Nilai, Salak Tinggi and Sepang, especially the students, since there are many colleges and a local university. The company had done some research and discovered that this group of customers is interested in sport activities and futsal is one of the activities that are getting a place amongst them.
These customers also prefer to spend their leisure time at cafes, either to have meals or to spend time with their friends. Demographic SegmentationThe Nilai Sport Center also considers demographic segmentation in identifying a target market. The product and service provided by the company fulfill the teenagers’ desire in enjoying their teen life in a healthy way. The target market s divided into groups based on the demographic variables such as age, gender, race and religion. ; Age factor: •The company’s target customers are teenagers especially the students at age around 15 to 21 and also those who are beginning to enter adulthood at the age of 22 to 25 and also 25-40.
; Gender factor: The futsal game service is more suitable for the male teens, while the cafe with broadband internet connection is suitable for both male and female teens. ; Race and religion factor: •The business is opened to everyone without any discrimination between race and religion. Psychographics Segmentation This factor emphasizes the life-style, social classes and personal characteristics. The Nilai Sport Center is a medium-class center where the price for the service and product are reasonable and affordable. Therefore, everybody can afford to pay for the service and product provided by the company.Competition From our research, every competitor in the business has its own strengths and weaknesses.
It is important for the company to analyze the competitor’s strengths and weaknesses. The company had made an observation and had identified a couple of competitors that offer about the similar service like the Nilai Sport Center. A positive and healthy competition can help to increase the quality of the business. Below is the list of the competitors to Nilai Sport Center: NoCompetitorsStrengthsWeaknesses 1 WRP Futsal-Has more futsal courts Provides other sport courts besides futsal-Insufficient facilities -Non-strategic location (hidden) 2Nilai Futsal -Located at a good area -Provides other sport courts besides futsal-Insufficient facilities -Old-fashioned STRENGTHS AND WEAKNESSES It is important for the Nilai Sport Center to know its own strengths and weaknesses. This is very important for us to survey the potentials of our business in operating the business.
All of this will be faced during operation periods. Below are the business strengths and weaknesses. Strengths: -Nilai Sport Center is located at a very strategic location.Nilai 3 is the area where people prefer to hang out at. -The product and service provided by Nilai Sport Center are of good quality. -The cafe at Nilai Sport Center is big, provided with broadband internet connection and televisions with Astro subscription and provide screen projector.
Plus, the decorations at the cafe make the cafe look attractive and eye-catching. -Customers can watch futsal games while hanging out at the cafe. Weaknesses: Nilai Sport Center operates only 14 hours a day except during weekends and public holidays. MARKETING STRATEGY Marketing strategies include 4 factors.These factors are product and service, distribution, price and also promotion.
These strategies combination is known as marketing mix. As for Nilai Sport Center, the marketing strategies consider all those factors. Product and Services Strategies The products and service given at the Nilai Sport Center comes from the best condition and quality to satisfy the customers. At the futsal courts, the futsal equipments such as the balls and nets are made from good quality and in good condition. The Nilai Sport Center workers are friendly, polite, clean and tidy.
Plus, the workers are trained to give the best service to the customers. The workers must always hold on to the principle that ‘the customers are always right’. The workers will be on time when serving the customers either at the futsal courts or at the cafe. Besides that, Nilai Sport Center are ready to accept any complaints, comments or feedback on our product and service from the customers and try to improve any weaknesses. Price Strategies The futsal court rent is affordable and it is at the standard rate, which is RM100 per hour.
There will be discount of 10% given for those who rent the court for more than 2 hours. For futsal lovers who often visit the Nilai Sport Center, they will also be offered to be the member of Nilai Sport Center with the annual fee of RM15. The members will get the discount of 5% per hour of court renting. Promotion Strategies Since Nilai Sport Center is still new, promotions are needed to promote the center to people. Promotions must be done as attractive as it can be so that it can influence the customers to be interested to visit the Nilai Sport Center.To promote the center, the company had chosen a few suitable and influential ways and they are: -Newspaper -Business signboard -Pamphlets -Business card -Banner OPERATIONAL PLANS Our company operational plans more concern about the process of marshalling resources to produce output through the transformation process.
It usually comprises three main components – Business Input, Transformation System and Output. •Business Input – refers to all resources required to produce a particular output. Examples of input are manpower, raw materials, machines and equipment, technology, information and capital. Transformation System – refers to the activities involved in transforming input into output. Among others, the processing system involves planning of raw materials, designing of operational process, planning of floor layout and distributing of manpower in the organization.
•Output – refers to the end product created as the result of the transformation process. Business output can be categorized into either or services. As input is transformed into output, it acquires added value, whereby the value of the output is higher than the total input value.The information that must be done by the company’s operation departments are: ; The transformation process ; Productivity index ; Process planning ; Material requirement planning ; Layout plan ; Selection of location ; Calculation of operational cost THE TRANSFORMATION PROCESS • Refers to the activities involved in transforming input into output. Among others, the processing system involves planning of raw materials, designing of operational process, planning of floor layout and distributing of manpower in the organization.As our company makes business that involves services both at the cafe or the futsal, we are more to the services business.
Both the cafe and the futsal same type of Model of Operations System but the contents are differ. Set of input for the Cafe •; Work force – need worker to operate the kitchen, serve the customers and manage the orders. For our cafe, we need at least 2 workers at the kitchen, 2 workers to take order and serve the order and 1 worker to manage the counter. •; Raw materials – the foods stuff need to be buy because these things are decrease each time the food been sold.The raw materials that our cafe need are eggs, flours, bread, onions, garlics and some other western stuff that been include in our menu. •; Technology – to make our cafe operation more smooth and fast, we need to get the western technology kitchen stuff to preserve the quality of our products.
We need the stove, toaster, microwave and oven to prepare the hot foods. •; Machine – machines were needed to make the goods faster. In our cafe, we need machine to make cappuccinos, make coffees and snack machine. •; Capital – were needed to buy the raw material and machines.Customers go to the counter and the worker that in charge at the counter get the customers information.
MATERIAL REQUIREMENT PLANNING The cafe : When making the material planning, our company follows 4 rules to make sure the quality and timely delivery of products or services that our company provides is first class. The timely delivery of products or services depends very much on the quality and delivery of materials. The 4 rules are: ? Identify and list down the raw materials required ?Prepare the bill of materials ? Calculate the quantity of raw material required ?Identify supplier For the Futsal Center:Because the futsal equipments are not easily broken, we just do deal about the futsal courts equipment only couple of times in a year. We just do the maintenance to the futsal courts and equipments ourselves because the works to do the maintenance are simple and easy. It just involves the work to clean the turf with the special broom, repair the nets, repaint the goal bar and cage, and lastly polish the ball.
The conditions that we need to deal with the supplier are when the items are broken and cannot be fixing. It needs to buy the new item to replace it. We usually contact Al-Ikhsan Sdn Bhd to do the deals The prices are reasonable. Only get discount when purchases above RM7000 •The qualities of the products are not very good because their product mainly come from China and Taiwan. •The payment must be made when we made the order at their office •All the products that this supplier sells are under 1 year warranty. Their worker will come to our place to fix the product.
• It takes 1 to 2 month to receive the goods after make the order. • This company has its own transportation to deliver the order. The delivery service is free. •Until this time, we only rely on this company.This company is very strong that make our company confident with our deal. FINANCIAL PLAN INTRODUCTION Financial is one of the important sources in the business.
The accountant has to ensure the company’s fund is always enough and use by the company efficiently. The finance department reflects the effectiveness of an organization in using defray sources. Analytical and regularities of plans from this department will smoothen the company progress and furthermore and it can elude misspending. FINANCIAL OBJECTIVES > To make decision making on how to get new financial sources. gt; To complete the cost involves in commencing the business.
> To determine the position of cash in the business. > To determine the hire purchase payback amount in the hire purchase agreement. > To study whether our planned project will be either profit, loss or break event. > To determine the financial position at the end of account period. > To convince the creditors and bank about the ability of the business in order to payback the loan and the credit. > To analyze the establishment and position of the business finance.
> To assume that the initial capital is sufficient. FINANCIAL STRATEGIES gt; To provide sufficient cash flow in hand so able to expenses the daily expenditure. > To control the cost incurred in marketing, operating and administration as to below the cafes budget. Discussion about financial position needs to often conduct between the manager and staffs. > To maximize a profit for each year. > To make an observation of the potential customer and opportunities in current market.
They can also flow – in cash, increase and improve the financial position. > So, by this financial plan it can measure the return will be base on sales forecasting. ADMINISTRATION BUDGETParticularsF. AssetsMonthlyOthersTotal Fixed Assets Land & Building– Building Renovation20,00020,000 Furnitures4,920 4,920 Office Equipments 6,3296,329 Van20,00020,000 Working Capital Salary18,40018,400 EPF2,0802,080 SOCSO320320 Building Rental 1,0001,000 Other Requirements Deposit780780 Registration a Licenses600600 Insurance & Road Tax 3,0003,000 Other Expenses Total51,24921,8004,38077,429 ParticularsF. AssetsMonthlyOthersTotal Fixed Assets Business Signboard 1,0001,000 Working Capital Advertising 500500 Other Requirements Deposit– Other Expenses15,00015,000 Total1,00050015,00016,500 MARKETING BUDGET