GROUP 3
1. Mohd Farhan bin Abdul Rahim (CEB 090031) 2. Nor ‘Izzatul Solehah binti Baharudin (CEB 110047)3. Mohd Firdaus Bin Abdul Khalil (CEB 110037)4. Siti Nurul Azwanee Binti Kon @ Sapawi (CEB
110074)
MANAGER & FINANCE
Nor ‘Izzatul Solehah
OPERATION/PRODUCTION
Firdaus Khalil
ADMINISTRATION
Siti Nurul Azwanee
MARKETING AND SALES
Mohd. Farhan
Management Team
Current Status
• Preparing : to provide the best of crochet products
with the highest quality crochet product and best service possible.
• In progress to find more source of money to larger the business
• Find the strategic place/store for our business.
Opportunity and Target Market
• Targeting on all age level as our products are suitable for all the age level.Baby-wear - Future parents / anyone related
to give as a gift
Card holder - University or college students / workers
Cozies - Teenagers to adults who own gadgets
Sleeve - Teenagers to adults who own gadgets
Brooch - Girls, ladies, women
CompetitionCompetitor Main products
Sinar Kreatif Baby and kids wear
Sew Addict Baby wear
Nureffa Craft Amigurumi
Comel Crochet Sue Baby wear
Myhandmade-wie Baby wear
Baizura Rahman Bag
Marketing and Sales• Product
making and selling crochet products for all ages, from new born babies to adults
100% handmade using various type of local and imported yarns from all over the world
ready-made and custom-made products 5 product lines (baby-wear, card holder,
cozies, sleeves and also brooch)
• PriceReady-made items are relatively cheaper than the
custom-made itemsDiscount (free postage services or 5%-10% discounts. )
- buy more than 5 items- items valued RM150 above
Payment method - online banking - bank deposit (Maybank Berhad, Bank
Islam Malaysia Berhad or CIMB Bank)
Marketing and Sales
Value-based pricingItem Price
Baby booties RM18 - RM25
Baby hat/brim RM20 – RM30
Baby mittens RM10 – RM15
Baby headband RM12 – RM20
Baby set RM30 – RM90
Card holder RM10
Mobile phone/hard disk cozy RM10 – RM20
Pen-drive cozy RM3 – RM7
Mug coaster cozy RM15 – RM25
Bottle cozy RM20 – RM30
Tab sleeve (7” – 10”) RM20 – RM35
Laptop sleeve (10” – 14”) RM30 – RM50
Brooch RM4 – RM7
• Place Targeting people within Malaysia only
Don’t have any physical store
Items will be ship using Pos Malaysia services
No shipping in weekends and public holidays.
Marketing and Sales
• PromotionGoogle Site (main way) addressed
https://sites.google.com/site/bbacbeb2302group3/
Advertise the website at other social networks
Promotion price during special occasions (during our anniversary, Eid, Christmas Eve )
Conduct a contest
Marketing and Sales
Financial Projections
A. Capital Expenditure RM RM Machinery and Equipment 278 Sub-total 278
B. Working Capital (anually) Marketing 1350 Operation 2351 Administrative 2400 Sub-total 6101
C. Other Expenditure Pre operating Business registration 50 Sub-total 50 TOTAL 6429
i) Project implementation cost
Equity contributions RM RM
Cash 2000
Equipments 245
Total 2245
ii) Sources of finance
Financing Sought
Partners cash contribution
Partners fixed asset
Year Year 1 Year 2 Year 3A Cash inflow: Equity - cash 2,000 0 0 Equipment 245 0 0 Cash sales 6,900 7,000 9,000B Total Cash Inflow 9,145 7,000 9,000C Cash Outflow: Operations Expenditure: Raw Materials 1,151 1,000 1,000 Direct Labor 1,200 1,500 1,800 Administrative Expenditure: Salaries 2,400 3,000 3,600 Marketing Expenditure: Promotion 150 Salaries 1,200 1,500 1,800 Capital Expenditure Equipments 278 0 0 Pre Operational expenditure 50 0 0D Total Cash Outflow 6,429 7,000 8,200E Cash Surplus/Deficit 2,716 0 800F Beginning Cash Balance 0 2,716 2,716G Ending Cash Balance 2,716 2,716 3,516
iii) Pro forma Cash Flow Statement (Annually)
RM RM Sales 6,900 Cost of goods sold: Opening stock for finished goods 0 Add: Cost of goods produced 1,151 Goods available for sale 1,151
Less: Closing stock for finished goods 100 1,051 GROSS PROFIT 5,849 Less: Operating expenses Administrative expenses 2,400 Marketing 1,350 Salary 1,200 Total operating expenses 4,950 NET PROFIT BEFORE TAX 899
iv) Pro forma income statement
RM RM FIXED ASSET Equipments 523 523 CURRENT ASSET Cash 2,000 Closing stock for raw materials 276 Closing stock for finished goods 100 2,376 TOTAL ASSETS 2,899
EQUITY Capital 2,000 Accumulated profit 899 2,899
CURRENT LIABILITIES 0 LONG TERM LIABILITIES 0 0 TOTAL EQUITY AND LIABILITIES 2,899
v) Pro forma Balance Sheet
TECHNOLOGYNot necessary for making a product
(skills and creativity are most important)-yarn, thread, crochet hook
Computer and internet for online business
PROBLEMSHard to get material supplies
- yarns out of stock- A few type of yarns are limited, no
reproduce (need to explain to the customers)
Back out buyer
SOLUTIONActive online business (launched an official
Google sites) https://sites.google.com/site/bbacbeb2302group3/
Working at home (minimize operating expense)
Getting fund from partner contribution
Own saving and borrow from family or relatives
SUMMARY• Will overcome problems before 2015
• Maximize the profit, minimum the cost
• Hope can satisfied customer want and delivered the value by making a quality products.
• Want to be the Web’s Most Popular Crochet Store