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Name of University : University of Malaya

Faculty : Faculty of Computer Science and Information Technology

Course Code / Name : GXEX1412 / Basic of Entrepreneurship Culture

Name of Students : AU MEI LING WEK100006

KOAY YEN SIM WEK100025AHMAD SYAHIR BIN SUIB WEK110002

AMIR AIZAT BIT MOHD NAZIRAN WEK110003

ASMA AMALINA BINTI NAZARUDIN WEK110005AZRI BIN MOHD KHANIL WEK110006

BURHANUDDIN BIN BAHARUDDIN WEK110007

Assignment Title : Business Plan

Date : 9th

of May 2014

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Content

1.0 Executive Summary ...

1.1 Objectives ..

1.2 Product Offered ..

1.3 Market Potential .1.4 Project Costs ..

1.5 Expected Return

2.0 Introduction

3.0 Purpose ...

4.0 Business Background .

5.0 Ownership Background .

6.0 Marketing .

6.1 Product Description .6.2 Marketing Information

6.3 Pricing ..

6.4 Promotion .

6.5 Distribution ..

6.6 Competition ..

6.7 Management .

6.7.1 Organization Structure .

6.7.2 Business Plan ...

6.8 Operation .

6.8.1 Lemonade Drink ...

7.0 Finance .

7.1 Project Implementation Cost Schedule

7.2 Sources of Financial Schedule .

7.3 Distribution of Finance

7.3.1 Income Statement ..

7.3.2 Balance Statement

7.4 Notes

8.0 Conclusion ...

9.0 Appendices ..

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1.0 Executive Summary

1.1 Objective

The founders of the company are Au Mei Ling, Koay Yen Sim, Ahmad Syahir, Amir Aizat,

Asma Amalina, Azri and Burhanuddin. SweetNSour stand was established in April 2014 and the

stand was based at Dataran KPS, University of Malaya.

Our objective is to promote the pure and fresh Lemonade drink into the Malaysias beverage

market especially in university area. According to recent studies by World Health Organization

(WHO), Malaysia was ranked 1stin South-East Asia for obesity. One of main factor causing the

rise of obesity rate in Malaysia is sugar rich drink such as fast food soft drinks, canned drinks

and drinks using sugar rich condensed milk. Our product is created to satisfy customer need

which is an affordable simple tasty drink that will give themselves a lot of benefits other than

just a drink to quench their thirst. Through this product, we believe that it will bring a big change

of Malaysian drinking habit toward a healthier lifestyle.

1.2 Product Offered

Lemonade beverage is our main product which is made using original ingredients without adding

any chemical additives that make it special to compete in the drink market and also good for

health. The list of below shows three different choices for our customer:

Classic Lemonade

Sunrise Lemonade

Passion Lemonade

1.3Market Potential

Lemonade beverage has a very high potential in the market as it tastes great and contains a lot of

vitamins and minerals that our human body needs daily. The market potential of our business in

Dataran KPS is very high because the area has high foot traffic every day, hence providing us

with better chances of attracting customers and making a sale. In addition, we will offer

affordable prices to our customer since our target are the student and staff in University of

Malaya. The details of the strengths and weaknesses of the competitors will be explained on

Section 6.6

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1.4 Project Costs

Our project has cost us RM4629.90.The cost includes operation cost, capital cost, and other

expenses. The operation cost is RM2280 while capital expenditure cost is RM369. The other

expenses cost is RM1560.

1.5 Expected Return

For the capital that our stall had invested in this business, we had made an estimation on our

returns. The expected return for our business is RM175.71 for the first month and it will increase

up to 10% for the following month.

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2.0 Introduction

SweetNSour lemonade stall is managed by seven partners. These partners represent sales,

management, finance and administration areas respectively. The partners has provided funding

from their own saving, which will cover start-up expenses and provide a financial cushion for the

first months of operation and cover the rest of the required financing. This stall is projected and

has run on the April 2014.

We aspire to grow from one, small beverage stall to a multiple beverage stalls at strategic

locations around University of Malaya campus with high foot traffic, visibility and easy access in

favor of maximizing profitability. The location of our stall is at Dataran KPS, University of

Malaya which will provide us with better chances of attracting customers and making a sale, thus

helping us to establish strong market position. Our business concept is to provide customers with

a fresh and healthy alternative to canned and soft drink. We aim to make nutritious, delicious,

quick and convenient, and most importantly to provide every customer with an extraordinary

health experience unlike any they have ever tasted!

In future, we are going to have a few variable packet designs for our products to meet the

customer satisfaction. We will expose this business to the internet and social networks as a

stepping stone to make people know about SweetNSour stall products. Our stand will give our

customers the best service to them so that they do feel as comfortable as they in dreaming land.

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3.0 Purpose

Writing a business plan is an importantstep before starting a business. With proper business plan,

we are able to have an overview of our business which includes operational, marketing and

financial aspects. Those aspects are vital in determining the directions and feasibility of our

business. In addition,we are able to understand the risks involved and anticipating potential

problems in University of Malaya. A good business plan should contain all the information

necessary in order to achieve a desired goal. By this, it helps a company demonstrate the

advantages of doing business with it.

A business plan can build or destroy a new company. A clear business plan is able to convince

investor how strong is the management and leadership. A business plan also tells investors thecompany position in a market segment. Besides that, a business plan can be a motivation too. A

business plan can help us get back on track with our original business concept and giving us

wisdom and as well as guidance. It helps us see our original vision.

By having a business plan, we can analyse our start up business plan which helps us to take note

about things we do not normally consider during running a business. It forces us to analyse the

relationships among different parts of our business. For example, how sales ties together with

lead generation, how that ties into services, delivery, profit margins, cash flow forecasting, and

so on so forth.

Next is about the strategy. Our start up business plan highlights the relationship between our

business and the local competitive marketplace. By writing it we will have tapped into the

primary sources of information about the competition; sources that will be invaluable in the

future. Besides that, all information from the competitors could be used as a data to make your

business different from the others.

Overall, the act of writing a start-up business plan puts our ideas and concepts down on paper.

When things are in black and white like that you can see the inconsistencies and the weakness is

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shown out much easier. Then we have time to address these issues and resolve them before we

enter the marketplace.

4.0 Business Background

Name of Business SweetNSour Lemonade Stand

Address Penerbit Universiti Malaya, Pengarah Jabatan Penerbitan,

Universiti Malaya, Lembah Pantai, 50603, WP Kuala

Lumpur, Malaysia

GPS Coordinate 3 7' 29.089" N, 101 39' 12.254" E

Correspondence address www.sweetnsour.com

Email [email protected]

Telephone number 017-4036267

Form of ownership Partnership

Core business activities Selling with 100% natural and fresh lemonade in three

distinct and great tasting flavours, offering significantly

reduced calories without the use of artificial sweeteners,colouring and flavouring.

Date of commencement April 2014

Date of registration November 2013

Initial (own) capital RM5600

Table 4.0 Business background for lemonade stand
mailto:[email protected]:[email protected]:[email protected]

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Our products came with various flavours which is lemonade base. In the current stage, we will

provide 3different flavours of lemonade beverage. However, we expect to produce more than 10

flavours with different kind of fresh fruits such as blueberry, raspberry, kiwi and other.

The Table 4.1 below shows different type of lemonade flavours and its description respectively.

Type of flavours Description

Classic Lemonade Originallemon flavour with some sliced

lemon.

Sunrise Lemonade The mixture fresh squeeze orange juice

and lemonade with some sliced orange

and lemon.

Passion Lemonade The mixture of fresh blueberry and

lemonade with some blueberries

Table 4.1 Type of flavour provided

4.1 SWOT Analysis

One of the main strengths of our company is our reasonable price and various flavours. Our

business is product-driven, where we focus on quality of product and costs wherever possible. As

our businesss operation cost is not that expensive and it is reasonable to the production an d

services of our products. With hybrid, kiosk online means of business, we can get more profit to

cover the cost required to produce the product and provide services to customer. This saving can

turn into our stalls net profit. Moreover, with multiple flavours, we can give to our customers

with various choice of flavour compare to our competitors. As a result, customers are more likely

to choose our products.

Besides that, our pricing will be fixed. This is depending on the type of beveragethat our

customers desired. We will even give discounts for regular customers as a means to maintain

good customer relationship.

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Unfortunately, since our stall is newly established, our reputation is still low. Customers might

not have confident in our services. This can significantly affect our revenue stream, as customers

might be more desired to visit our competitor with higher reputation. Moreover, our employees

lack of training and experience to fulfil their tasks in providing services to customers. They

might not be able to provide services that could satisfy our customers.

SWOT Analysis

Strengths 1. Excellent services in terms of quality and

market reach

2. Brand new innovative in health concept for local

market

3. Reasonable pricing

4. Make use of Internet to expand business

effectively

5. Various of flavour and choice

Weaknesses 1. Low reputation

2. Employees lack of training and experience

Opportunities 1. Competitors overlooked Internet as a powerful

marketing platform

2. Expanding business by opening new branches

Threats 1. Competitors have well-known branding

2. Competitors have better customer relationship

Table 4.2 SWOT analysis of our business

To overcome our weaknesses, we need good marketing to help increase our companys

reputation. Besides that, we need to train our employees to ensure that they have the required

skills to provide good quality of services that could satisfy our valued customers.

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There are many beverages companies in Malaysia, and some of them are well established. To get

our product to be close to student, we planned to sell our product in each of programme that

university is running. Every week, there are events held in University of Malaya such as

Marathon, charity run or Gotong-Royong. Hence, we can take the opportunity to promote our

product and get our customer a taste of a good quality drinks and services. Apart from that, if we

are dealing with event organizers to sell our products and if they are satisfy with our services,

they will contact us for upcoming events, which will be our main stream of revenue.

4.2 Industry Information

Our business is in drinking and beverages industry. Currently, the industry is expanding as more

and more people are buying drinks and beverage, for example most of events in Malaysia, are

sponsored and supported by drinking and beverage companies. Milo for example, have been

support many events for example district football championship and many more.

Drink and beverages industry has a big potential. It is a multibillion dollar industry. Nowadays,

almost everyone drinks various type of beverage in many type of packaging. With a good

planning on the bottom line of business, it is not difficult to turn a profit in our beverage kiosk

business.

For our business, we decided to start with small capital investment. We chose not to apply forbusiness loan because applying for a business loan is a time-consuming process, especially when

applying business loan with bank, such that the bank needs to verify all information about our

business and finances, which could end up taking months for the applications processing. Not to

mention other problems, such as risk of our collateral and hidden fees of business loan.

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5.0 Ownership Background

The following are the members profile information:

a) Name : Au Mei Ling

b) IC No : 900505-08-6086

c) Date of Birth : 05-05-1990d) Age : 24

e) Sex : Female

f) Address : 2516, JlnSgDaun, 14300, NibongTebalS.P.S,Penangg) Phone No : 017-4036267

h) Marital Status : Single

i) Academic Achievement : STPM

j) Attended Courses : Basic of Entrepreneurship Culturek) Skills : Computer Science

l) Experience : Nonem) Current job : Student

n) Other Business Venture : None

a) Name : Koay Yen Sim

b) IC No : 900919-07-5694

c) Date of Birth : 19-09-1990

d) Age : 24e) Sex : Female

f) Address : 1-3-16, LengkokNipah, Taman Lip Sin, 11900 PulauPinang

g) Phone No : 012-4028372


i) Academic Achievement : STPMj) Attended Courses : Basic of Entrepreneurship Culture

k) Skills : Computer Science

l) Experience : None

m) Current job : Student


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a) Name : Ahmad Syahir Bin Suib

b) IC No : 921031-05-5335


e) Sex : Male

f) Address : 490, Jalan Lembah Permai 4, Taman Lembah Permai,08100 Bedong, Kedah Darul Amang) Phone No : 013-4925777


i) Academic Achievement : SPMj) Attended Courses : Basic of Entrepreneurship Culture

k) Skills : Computer Science


m) Current job : Studentn) Other Business Venture : None

a) Name :Amir Aizat bin Mohd Naziran

b) IC No :920328-07-5957

c) Date of Birth : 28 March 1992d) Age : 22

e) Sex :Male

f) Address : No 16,Jln Indah 2, Taman Salak Indah, 43900,

Sepang, Selangorg) Phone No : 011-11111407

h) Marital Status :Single


k) Skills : Computer System and Networking

l) Experience : Nonem) Current job : Student


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a) Name : AsmaAmalinabintiNazarudin

b) IC No : 920925-14-5394


e) Sex : Female

f) Address : No 4, JalanPinggiranSekamat, Taman PinggiranSekamat,43000 Kajang, Selangorg) Phone No : 010-4327937



k) Skills : Software Engineering


m) Current job : Studentn) Other Business Venture : None

a) Name : Azri bin Mohd Khanilb) IC No : 921006-02-5425c) Date of Birth : 06-10-1992d) Age : 22e) Sex : Malef) Address : No.17, Jalan Nirwana 36,Taman Nirwana,68000,Ampang,

Selangor.g) Phone No : 019-5703962h) Marital Status : Singlei) Academic Achievement : Foundation Studies (PASUM)j) Attended Courses : Basic of Entrepreneurship Culturek) Skills : Computer Science(Artificial Intelligence)l) Experience : Nonem) Current job : Studentn) Other Business Venture : None

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a) Name : Burhanuddin bin Baharuddin

b) IC No :

c) Date of Birth :d) Age :

e) Sex : Male

f) Address :g) Phone No :h) Marital Status :

i) Academic Achievement :

j) Attended Courses : Basic of Entrepreneurship Culturek) Skills : Computer Science(Artificial Intelligence)l) Experience : Nonem) Current job : Studentn) Other Business Venture : None

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6.0 Marketing

6.1 Product Description

The product is lemonade beverage products. Lemonade is a sugared citrus drink thought to have

first been made in France at the 16thcentury. Our product will mainly focus on fresh fruits such

as lemon, orange and blueberry. These types of fruits have long been valued for their wholesome

nutritious and antioxidant properties. It is scientifically established that citrus fruits, especially

lemons and oranges, by virtue of their richness in vitamins and minerals, have many proven

health benefits. In addition, our product prefers the original ingredients without adding any

artificial coloring and flavoring to care for the health of customers.

6.2Marketing Information

Our target customers will be the students and staff of University Malaya especially near the area

of Dataran KPS. Our product will cater to both physiological needs such as hydrating on the hot

weather and social needs where perception of a social and fun drink with a sense of belonging

within per consumer groups. The current trends include a shift away from junk foods and

carbonated drinks to growing interest for healthier or beneficial products.

6.3 PricingTable below show the price per unit for each of flavor lemonade beverage

Type of flavours Price Per Unit

Classic Lemonade RM4.00

Sunrise Lemonade RM4.00

Passion Lemonade RM4.00

Table 6.0 Price for each lemonade flavours

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6.4 Promotion

Our promotion strategy is based on competitive offerings, convenience and feasibility. To be

competitive with those local offerings, SweetNSour lemonade will be priced as follows:

500 ml Size - RM4.00 per cup Buy 3 and saveRM10 for 3 cups

SweetNSour will offer a volume promotion as a sales incentive. When a customer purchases

three cups of lemonade they can save up RM2. Those who purchase three cups, we will give

them a small stamped card. They will be getting one cup free lemonade once they managed to

collect three lemon stamps on the stamped card.

Besides that, we also will make a promotion on Yellow Day for each7th

of month. Customers

who are wearing yellow color cloth will be getting 50% discount and gain a lemon stamp ontheir stamped card.

6.5 Distribution

Distribution is the process of making a product or service available for the use or consumption

by consumer through strategy deployment formed by management of a company business that

specifies how the firm intends to transfer its services to consumers.

There are several strategies to promote and advertise our business. Designing and creating

posters and flyers is one of the ways we promote and advertise our lemonade business. We will

include a variety of lemonade products with the price that we are going to sell and the

promotions as well in the poster. The poster and flyers will be pasted and distributed around the

University Malaya campus such as main bus stop, Dataran KPS, every faculties and colleges that

will draw a captive audience the most.

Besides that, social media advertising and marketing is also one of the strategies to promote our

business. The reason we advertise our lemonade business in social network such as Facebook is

because most of our target customers have Facebook account and this allows us to reach them in

a more effective and efficient manner. Social network allow us to advertise our latest promotion

and updated news to keep our customers up-to-date.

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6.6 Competition

My team had done a survey about the strengths and weaknesses of the competitors in Dataran

KPS. The competitors that located in Dataran KPS are bubble tea and vending machines. The

strengths and weaknesses of each competitor including my team are shown below.

Bubble Tea

Strength

o Fresh

Weakness

o Expensive

o Does not provide smoothie beverages

Vending machines

Strength

o Cheap

Weakness

o Mostly is carbonated drinks

o Unhealthy drinks

o Does not provide fresh juices lemonade beverages

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6.7 Management

Due to our business newly established condition, we only have 7 members. Besides that, this is a

small scale business, so we do not require too many workers in the initial stage of business

operation. Most of us do not have any business experience but one of our members, Azri does

have several experience in conducting business with his friends.

6.7.1 Organization Structure

Our organization is made up of five departments. Each department with its own functions and

members is describing in the table below.

Departments Functions Members

Management i. Improvise business plan and strategy

ii. Supervise the other departments

i. Au Mei Ling

Finance i.

Prepare and estimate the budgetii. Manage cash flow of the business

iii. Prepare financial report to indicatethe profit/loss of company

i.

Koay Yen Sim

Marketing i. Promote our product to UM students

and staff

ii. Design posters

iii. In charge of the design of booth

i. Azri

Product

Sourcing

i. Stock purchasing

ii. Determine the most suitableingredient supplier

i. Syahir

ii. Baharrudin

Production i.

In charge of productionii. Manage the stand i.

Asmaii. Aizat

The decision maker of our organization is the Chief Executing Officer (CEO), Au Mei Ling who

is assisted by Chief Operating Officer (COO), Azri and Chief Finance Officer (CFO),Koay Yen

Sim .

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6.7.2 Business Plan

All of our members had involved in the operation. We will start to prepare all the ingredient and

setup the stand before one hour the business operates. Our stall will operate starting from 9:00am

to 5:00pm for everyday except Sunday. Some of the member will be in charge of cash flow,

making the order and serving customer. The other member will be prepare beverages and always

control the cleaning environment of the stand.

The stock purchasing will be done by product sourcing department the day before we start our

business. In addition, the management department will always ensure that there are sufficient

people taking care of the booth.

Lastly, the profit gained will be shared equally among all the members of the organization and

the salary will be paid for the employee at the end of every month. Incentive may be consideredif a member participates very actively.

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Ingredients:

Simple Syrup (1 cup sugar and 1cup water )

Juice of 6 freshly-squeezed lemons (approximately 1

cup)

Four cups cold water

One sliced lemon, for garnish

Ice cubes

Steps of Preparation:

1. Combine freshly-squeezed lemon juice and Simple

Syrup.

2. Add water, lemon slices, and ice cubes; stir until

well blended.

3. Refrigerate approximately 50-60 minutes before

servings

4.

Serve in plastic cup over ice.5. Yields approximately 6 cups

6.8 Operation

There are three main flavor lemonade products that we will sell on our lemonade stand which are

Classic Lemonade, Sunrise Lemonade and Passion Lemonade.

The steps of preparation of these three flavor lemonade are as shown in section 6.8.1,6.8.2 and

6.8.3.

6.8.1 Classic Lemonade

The originally flavor lemonade preserve the 100% taste of lemon.

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Ingredients:

Simple Syrup (1 cup sugar and 1cup water )

Juice of 3 freshly-squeezed lemons

(approximately 1/2 cup)

Juice of 3 freshly-squeezed lemons

(approximately 1/2 cup)

Four cups cold water

One sliced lemon, for garnish Ice cubes


1. Combine freshly-squeezed lemon juice and

Simple Syrup.2. Add water, lemon slices, and ice cubes; stir

until well blended.

3. Refrigerate approximately 50-60 minutes

before servings

4. Serve in plastic cup over ice.

5. Yields approximately 6 cups

6.8.2 Sunrise Lemonade

The orange flavour lemonade with the mixture for each 50% of orange and lemon taste

respectively.

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Ingredients:

1 cup granulated sugar

1 cup water

to 1 cup lemon juice

1 cups fresh strawberries

water


1. Combine 1 cup water, sugar and 1 cup

strawberries in a small saucepan.

2. Simmer over low heat, stirring often, until

sugar is dissolved and strawberries start to

soften and leach their color3. Strain strawberries and cool the sugar water

mixture.

4. Combine lemon juice with sugar water and

add enough water to make 2 quarts of

lemonade.

5. Refrigerate approximately 50-60 minutes

before servings

6. Serve in plastic cup over ice.

7. Yields approximately 6 cups

6.8.3PassionLemonade

The strawberry flavour lemonade with mixture for each 50% of strawberry and lemon taste

respectively.

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7.0 Finance

7.1 Project Implementation Cost Schedule

Project Implementation Cost Schedule

Note RM RM

A. Capital Expenditure

Equipments 1 239

Poster (A1 size) 80

Poster (A4 size) 50

Subtotal 369

B. Operating Expenses (1 month)

Materials 2 2,280

Subtotal 2,280

D. Other Expenditure

Business registration 60

Utilities 3 300

Stall Rental 1,200

Subtotal 1,560

Grand total 4,209

E. Add: Contingency cost (10%) 420.90

Total Project Implementation Cost 4629.90

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7.2 Sources of Financial Schedule

Sources of Finance Schedule

Note RM RM

A. Equity Contributions

Cash 4 5600

Subtotal 5600

Total Sources of Finance 5600

7.3 Distribution of Finance

7.3.1 Income Statement

Budgeting Income Statement

Note RM RM

Sales 5 5200

(-) Cost of goods 2280

Gross Profit 2920

Less: Expenses


Utilities 6 300

Stall rental 1200

Total Expenses 1560

Net profit before tax 1360

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7.3.2 Balance Statement

Budgeting Balance Sheet

Note RM RM RM

Non - Current Assets

Equipment 239

Total Fixed Assets 239

Add: Current Assets

Cash 6 6591

Total Assets 6830

Current Liability

Capital 5600

Net Profit 1230

6830

Net profit per Owner =R

= RM 175.71 (for 1 owner)

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7.4 Notes

1. Equipment = ice containers + beverage container + Juicers & Fruit Extractors

= RM30 + RM50 + RM20+RM139

= RM239

2. Materials = Lemons + Oranges + Strawberries+ Plastic cup+ Straw + Ice tubes +

Sugar

= (RM0.80 X 1200 unit) + (RM0.50 X 480 unit) + (RM6.50 X 72 pack) +

RM360 + RM33 + RM87 + RM132

= RM2280

3. Utilities = Water bills + Electric bills

= RM100 + RM200

4. Cash

Cash (Investment of Owner)

Number of owner Amount of Investment (RM) Subtotal (RM)

7 800 5600

Total Investment 5600

5. Sales

Sales Unit Price per unit (RM) Subtotal (RM)

Classic Lemonade 20 4.00 80

Sunrise Lemonade 15 4.00 60Passion Lemonade 15 4.00 60

Total 200

For 1 month, the total income = 2 26 days = RM 52

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6. Cash for current assess

Balance Statement

Note RM

Cash inf lows

Cash Sale 5200

Total Revenue 5200

Cash outf lows

Material 2280

Equipments 239

Poster (A1 size) 80

Poster (A4 size) 50


Utilities 300

Stall Rental 1,200

Total Cost 4209

Total Cash 991

Beginning Cash 5600

Ending Cash 6591

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8.0 Conclusion

As the conclusion, we will make our best effort to make sure our business being carried out like

what we planned and estimated in this business plan. We will ensure our product always has

good quality control in order to fulfill our initial concept, health and fresh. We believe our

business will have potential to grow in market over the next 10 years.

Documents

APK bp 2014(v2)