business plan algojo

8/10/2019 Business Plan ALGOJO

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1

COVER LETTER

Diploma in Accounting (AC110)

Faculty of Accounting Mara University of Technology (UiTM)

32600 Seri Iskandar

Perak Darul Ridzuan.

______________________________________________________________________

Encik Saadon

Lecturer of Fundamentals of Entrepreneurship (ETR/ENT300)

Mara University of Technology (UiTM)

32600 Seri Iskandar

Perak Darul Ridzuan. 16th

March 2014

Sir,

Submission of Business Plan Report for ETR/ENT300

Referring to above matter, we as AC1106J students had prepared a business plan and ready to

submit this business plan to fulfill the requirement of ETR/ENT 300 course. We have tried our

best to complete this business plan and are satisfied with our work.

2. We agreed to establish our company name as “ALGOJO”. We choose this business due to the

factor of gaining profit and fulfilling high demand in the proposed location.

3. The preparation of this course work is important, it expose us to the business field so that in

future, we will be able to manage business successfully and efficiently.

4. We hope that this business plan will give an overall view about our business, whether in

marketing, operation, administrative or financial. Below are the partnership members of

ALGOJO.



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Name Matrix Num.

Muhamad Adib Bin Roslan 2011432508

Wan Hanzalah Bin Wan Shoaidi 2010150073

Ariff Basyir Fei 2011294834Ahmad Muaz Bin Abdol Raof 2011438696

Muhammad Amirul Bin Md Ismail 2011608666

We hope that you will be satisfied with the proposal and we would like to acknowledge you for

your guidance. Thank you for all the support and cooperation.

Yours truly,

……………………………….

(MUHAMAD ADIB BIN ROSLAN)



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EXECUTIVE SUMMARY

ALGOJO is a partnership company. The business is registered on 16TH November 2013 and

starts to commence on 1st January 2014. The reason why we open this business is because we

want to provide streetwear to the people residing in Seri Iskandar, Malaysia and presumably

worldwide in the near future.

The purpose we prepare the business plan are to obtain working capital.

Before we decide the location, we had some surveys to gain some information on the location

itself, the population, the interests and the existing business. From our survey, we decided to

open our company in Seri Iskandar, Perak. The main reason why we choose to open our

business here is because we think the location is strategic for our business to generate profit.

The capital for our company is gained from the partners and loan. Each of partners contributes

RM 10,000. We are making a loan which amount RM20, 000 from SME Bank.

The vision is to expand streetwear culture throughout Malaysia in coming 2026. In order to

make our vision well achieved , we have to fulfill the mission of the business to ensure that the

service provided meet the customer needs in a systematic way. Besides that our mission is to

generate a highly profitable income and provide people with a new taste of fashion byproviding a various street style apparel towards community.



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PARTNERSHIP AGREEMENT

This Partnership Agreement is done in order to avoid any problems that may arise

regarding the allocation of profit and on the term of agreement in the future. The agreement is

deemed effective on the date on commencement. Below are the list of partners involved in the

agreement.

NAME OF PARTNERS IC NUMBER

MUHAMAD ADIB BIN ROSLAN 2011432508

AHMAD MUAZ BIN ABDOL RAOF 2011438696

WAN HANZALAH BIN WAN SHOAIDI 2010150073

ARIFF BASYIR BIN FEI 2011294834

MUHAMMAD AMIRUL BIN MD ISMAIL 2011608666

Table : Business’s Partners

1. Name and Business

ALGOJO is established by six partners under the Partnership Act 1961 (Amendment 1964) that

provides streetware fahion styles. The principal office of the business is located at Bandar Seri

Iskandar, Sri Iskandar Perak.

2. Term

The partnership shall begin on 16th November 2013, and shall continue until terminated.



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3. Capital

The capital of the partnership shall be contributed in cash by the partners as follows :

Name Capital contribution (RM)

Muhamad Adib Bin Roslan 10,000Ahmad Muaz Bin Abdol Raof 10,000

Wan Hanzalah Bin Wan Shoaidi 10,000

Ariff Basyir Bin Fei 10,000

Muhammad Amirul Bin Md. Ismail 10,000

Table : Capital Contribution by Partners

4. Profit and Loss

The net profits of the partnership shall be divided equally between the partners and the net

losses shall be borne equally by them. A separate income account shall be maintained for each

partner. Partnership profits and losses shall be charged or credited to the separate income

account of each partner. If a partner has no credit balance in their income account, losses shall

be charged to their capital account.

5. Partnership Property

All real or personal property, including all improvements placed or located on such property,

acquired by the partnership shall be owned by the partnership, such ownership being subject to

the other terms and provisions of thisagreement. Each partner hereby expressly waives the

right to require partition of any partnership property or any part of that property.



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6. Salaries and Withdrawals

Partner shall receive any salary for services rendered to the partnership. Each partner may,

from time to time, withdraw the credit balance in their income account.

7. Interest

No interest shall be paid on the initial contributions to the capital of the partnership or on any

subsequent contributions of capital.

8. Management Duties and Restriction

The partners shall have equal rights in the management of the partnership business, and each

partner shall devote their entire time to the conduct of the business. Without the consent of

the other partner neither partner shall on behalf of the partnership borrow or lend money, or

make, deliver, or accept any commercial paper, or execute any mortgage, security agreement,bond, or lease, or purchase or contract to purchase, or sell or contract to sell any property for

or of the partnership other than the type of property bought and sold in the regular course of

its business.

9. Banking

All funds of the partnership shall be deposited in its name in such checking account or accounts

as shall be designated by the partners. All withdrawals there from are to be made upon checks

signed by either partner.



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10. Books

The partnership books shall be maintained at the principal office of the partnership, and each

partner shall at all times have access thereto. The books shall be kept on a fiscal year basis, and

shall be closed and balanced at the end of each fiscal year. An audit shall be made as of the

closing date.

11. Voluntary Termination

The partnership may be dissolved at any time by agreement of the partners, in which event the

partners shall proceed with reasonable promptness to liquidate the business of the partnership.

The partnership name shall be sold with the other assets of the business. The assets of the

partnership business shall be used and distributed in the following order:

to pay or provide for the payment of all partnership liabilities and liquidating expenses

and obligations;

to equalize the income accounts of the partners;

to discharge the balance of the income accounts of the partners;

to equalize the capital accounts of the partners; and

to discharge the balance of the capital accounts of the partners.



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12. Death

Upon the death of either partner, the surviving partner shall have the right either to purchase

the interest of the deceased partner in the partnership or to terminate and liquidate the

partnership business.

If the surviving partner elects to purchase the deceased partner's

interest, he shall serve notice in writing of such election, within three

months after the death of the deceased partner, upon the executor or

administrator of the deceased partner, or, if at the time of such election

no legal representative has been appointed, upon any one of the known

legal heirs of the deceased partner at the last-known address of such heir.

If the surviving partner elects to purchase the interest of the deceased partner

in the partnership, the purchase price shall be equal to the deceased partner 's

capital account as at the date of his death plus the deceased partner’s income

account as at the end of the prior fiscal year, increased by his share of

partnership profits or decreased by his share of partnership losses for the

period from the beginning of the fiscal year in which his death occurred until

the end of the calendar month in which his death occurred, and decreased by

withdrawals charged to his income account during such period. No allowance

shall be made for goodwill, trade name, patents, or other intangible assets,

except as those assets have been reflected on the partnership books

immediately prior to the deceased partner’s death; but the survivor shall

nevertheless be entitled to use the trade name of the partnership.

Except as herein otherwise stated, the procedure as to liquidation and distribution of

the assets of the partnership business shall be the same as stated in paragraph 10

with reference to voluntary termination.



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13. Arbitration

Any controversy or claim arising out of or relating to this Agreement, or the breach hereof, shall

be settled by arbitration in accordance with the rules, then obtaining, of the Arbitration Act

1952, and judgment upon the award rendered may be entered in any court having jurisdiction

thereof. In witness whereof the parties have signed this Agreement.



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1.0 INTRODUCTION



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1.1 Name of The Company

Our company has decided to use the name Algojo as our company name.

Algojo is a partnership business consists of 5 people in our partnership.

1.2 Nature of Business

Algojo provide streetwear to the people residing in Seri Iskandar, Malaysia

and presumably worldwide in the near future.

1.3 Industry profile

Our business is particularly in a selling and distributing industry. We sell an

international streetwear brand of clothing to people in Seri Iskandar.

1.4 Location of the Business

Algojo is located at No 155, Persiaran SIBC 6, Seri Iskandar Business

Centre,32610, Seri Iskandar, Perak.

1.5 Date of Business Commencement

1st

January 2014

1.6 Factors in Selecting the Proposed Business

1.6.1 Strategic location and have potential to fulfill future demand

1.6.2 In Seri Iskandar, streetwear’s trend does not establish enough among

people here since there are not accustomed to this streetwear clothing

style. Therefore, competitors are not a major concern since we will deliver

a new brand of design, as well as brand new style.



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Future Prospects of the Business

Our store is located at SIBC Seri Iskandar, a very convenient and strategic

place, located at a center of this district. As a sole provider of streetwear in Sri

Iskandar, we will deliver our best services to the community, by bringing variousstyles, designs and sizes, just for you! We are selling a wide variety of clothing, be

it imported or local. Brand such as Vans, Macbeth, Obey Propaganda and also

Nike can be easily found at our store, as this line of products are highly demanded

by people nowadays. As a newly founded organization, we have some future

planning to be implemented, in order to expand our business, till the point it is

well established and well known to the whole country.

For starts, we are already planning to expand our business to other area,

namely Kuala Lumpur. Why Kuala Lumpur? This is because streetwear’s culture

and ideology are already there for us to begin with. Skaters, dancers, and other

street style culture are enormous while already being established there for a very

long time. Therefore, we think it would be very suitable to open an additional

store there in the future.

Next, we might change our premises status from renting to owning this

particular building here in Seri Iskandar. As we are going to stay in this business

for a long time, we might end up making this building our own fixed asset.

For now, we are particularly a simple retailing business, which is

distributing supplied clothing to people. But for our major future planning, we are

very committed to produce our own clothing brand, as soon as we are well-

established and wise in this field of business.



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Logo of the Company

This logo symbolizes our simplicity and boldness in delivering our ideology

towards the public. In street style apparel, sometimes it is always about delivering

message. This will help teenagers deliver messages in a more healthy way, instead

of showing it in a more aggressive attitude.

We chose Algojo as the name of our shop, as Dato’ M Nasir is our idol

figure, since childhood. Therefore, we decided to tribute a line in one of his song,

right into the name of our shop.

The 6 stars portray “Rukun Iman” which is the main virtue of faith in Islamicreligion, which we chose to uphold the most in the operation of our business.

MMXIV means the year of our business commencement. It is merely

written in a roman letter to portray its exclusivity and elegance.

Our slogan “ukur baju badan sendiri” potrays an old saying in Malay stating

that you can measure your own body size while also deliver a hidden message

stating that measure your own ability before taking any action. “Gah berdiri

Algojo di sini” means that we are looking forward to deliver our best services to

our customers.



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2.0 PURPOSES OF THE

BUSINESS



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Purposes of the business

This business plan is prepared by Algojo for the purpose of obtaining

working capital loan from SME Bank for the amount of RM20,000. Partners will

also contribute their own capital which RM 10,000 each.

This business plan is also a guideline for managing the proposed business. It

is to allow us to view and evaluate the proposed business venture in an objective,

mission and vision. By that, we could have a solid and well-grounded information

to comprehend with the planning and decision-making process. Hence, a good

decision making skill must be developed so that our business can compete

through the market and thus, meeting an absolute demand among community

Other than that, business plan is also used to analyze and helping with the

evaluation of future prospect. It is used as a basis to determine the viability of

proposed business venture so that a better judgement can be made accordingly,

before any steps are taken.

Besides that, the business plan is used to convince relevant parties such as

financial institutions, private or individual investors and government agencies

about the investment potential of the project. This is because the business plan is

one of the communication tools to convince incoming potential investors in thefuture. This business plan will bring up the confidence and attract interest of

those parties.



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3.0 COMPANY

BACKGROUND



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Company’s Background

Name Of Company AlgojoBusiness Address No 155, Persiaran SIBC 6,

Seri Iskandar Business Centre,

32610, Seri Iskandar,

Perak

Telephone Number 05 – 4681357

Form of Business Partnership

Main Activity Selling international streetwear

clothing brands

Date of Commencement 1st

January 2014

Date of Registration 31st

May 2013

Registration Number 220090-A

Name of Bank CIMB Bank

Maybank Bhd

Account Number CIMB Bank : 1660 - 0003036 077

Maybank Bhd : 1540-80109 951



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4.0 PARTNER’S

BACKGROUND



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Partner’s Background

Name of Partner : Muhamad Adib Bin Roslan

IC Num : 891019-10-5811

Permanent Address : F1 Apartment Kakitangan, Kolej Yayasan Saad Petisurat 495, 75670

Melaka

Correspondence Address : [email protected]

Tel. No. : 0124567890

Date of Birth : 19th October 1992

Age : 22

Marital Status : Married

Academic Qualifications : Bachelor in Business Administration

Course Attended : Business Admin

Skills : Communication, Marketing and Finance

Experience : Kuala Muda Barbershop barber between 2010 to 2012

Present Occupation : Businessman

Previous Business Experience : Selling computer hardware



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Name of Partner : Ahmad Muaz Bin Abdol Raof

IC Num : 890111-04-5385

Permanent Address : No 58, Persiaran Perdana 59, Seksyen 7 Taman Iskandar Perdana,

32610 Seri Iskandar Perak


Tel. No. : 0196095150

Date of Birth : 11 Jan 1992

Age : 22

Marital Status : Single

Academic Qualifications : Diploma In Business Administration

Course Attended : Fundamental of Entrepreneurship

Skills : Communication

Experience : Communication

Present Occupation : Business Man

Previous Business Experience : Selling beverage



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Name of Partner : Wan Hanzalah Bin Wan Shoaidi

IC Num : 861228-03-5667

Permanent Address : No.34 Lembah Hitam , Tronoh


Tel. No. : 0179545909

Date of Birth : 28th

December 1986

Age : 28


Academic Qualifications : Ba (Hons) in Business Administration (Finance)

Course Attended : Fundamentals of Entrepreneurship

Skills : Public Relation

Experience : McD staff

Present Occupation : Undergraduate

Previous Business Experience : Selling souvenirs and gift



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Name of Partner : Ariff Basyir Fei

IC Num : 870416-10-5369

Permanent Address : No. 14, Persiaran Perdana 54, Seksyen 6 Taman Iskandar Perdana,



Tel. No. : 0132734583

Date of Birth : 16th April 1987

Age : 27


Academic Qualifications : Diploma In Art & Design

Course Attended : Fine Arts

Skills : Creative designing

Experience : Artist in art exhibition

Present Occupation : Graphic Designer

Previous Business Experience : Project manager, event planner



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Partner’s Background -

Name of Partner : Muhammad Amirul Bin Md Ismail

IC Num : 870620-10-6107

Permanent Address : No 58 ,persiaran iskandar perdana 59 Seksyen 7 Taman Iskandar

Perdana 32610 Seri Iskandar Perak


Tel. No. : 0133261182

Date of Birth : 20th june 1987

Age : 27


Academic Qualifications : Bachelor in Business Management

Course Attended : Fundamental of Entrepreneurship

Skills : Communication

Experience : Sales promoter in Book Fair

Present Occupation : Bank Officer

Previous Business Experience : Selling Household appliances



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5.0 LOCATION OF

BUSINESS



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Algojo is located at No 155, Persiaran SIBC 6, Seri

Iskandar Business Centre,32610, Seri Iskandar, Perak.Below is the plan to our premise



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6.0 ADMINISTRATIVE

PLAN



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6.1 Nature of business

To open up a business, one must emphasize on administration to ensure that the

business run smoothly because the performance, growth, and survival of the

business depends on managerial skills and capabilities. A manager must have theadministration skills such as planning, organizing, leading, and controlling the

business. The tasks are to set the salaries, protecting employee’s welfare and also

providing enough facilities for customers. He or she must also arrange an

organizational structure, planning a working schedule, and calculating all budgets

relating to administration department. Besides that, they are also responsible in

ensuring an active partner will get the reasonable salaries and also includes

important monetary aspect such as SOCSO and EPF. Thus, Algojo, sees

administration function as a vital task where it compresses all the elements tomake sure the effectiveness in terms of performing organization activities.

The success of a business usually depends on the owner’s strong entrepreneurial

spirit and knowledge. In addition, the growth and performance of the business is

associated with the owner’s managerial skills. Management functions refer to the

activities of planning, organizing, leading, and controlling the business output.

Planning

Planning is one of the most crucial factors to be honed as a manager. As the

manager of the business operations, the entrepreneur must determine his

business mission and visions while also setting the business objectives and goals.

These will ensure that the business operations will meet the target profit and

while also fulfilling customer’s satisfaction. In our store, manager will make a clear

and effective plan in developing the business so that it will meet the business

goals and targets.



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Organizing

In our business entity, organizing refers to the activities of designing a business

structure, dividing and assigning jobs and tasks among members besides handling

the infrastructure and operation methods. It involves determining the task to bedone, which will do it and how that task will be managed and coordinated. In our

business, the manager plays an important role, such as assigning the members

with different task, and also create solution to problem that may arise

Leading

The act of getting the job done through other people is referred to the managerial

function as leading. In general, business owner needs other people to help him in

managing the business operation effectively. As a leader, the manager has to

ensure that the job is carried out effectively and efficiently and also has to

motivate his workers to perform well in their tasks. In our tuition partnership, the

manager must try to understand every individual and group behavior, be able to

motivate and discussing with other members in any subject matter.

Controlling

Controlling is defined as monitoring functions to ensure that activities carried out

are in the right track towards achieving the goals set out by the business. If the

business is not striving towards the goals, immediate corrective actions need to

be taken in order to adjust the plan to the existing situation. In our business, the

manager has to get feedback from customers regarding our clothing and vice

versa in order to get effective monitor business activities. A good communication

among all members must be made in order to enable them to give and receive

feedbacks from each other easily.



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Vision

To expand streetwear culture throughout Malaysia in coming 2026.

Mission

To ensure the service provided meet the customer demands in a systematic

way.

To generate a highly profitable income.

To provide people with a new taste of fashion by providing a various street

style apparel towards community

Objectives

By creating a business and working environment more friendly and

comfortable.

Making our store become a well-known retailers in Seri Iskandar

Expanding our selection of product, probably worldwide brand in our field

of selection.



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6.2 Organizational Chart

6.3 List of Administration Personnel

Position No of Personnel

General Manager 1

Administration Manager 1

Marketing Manager 1

Operation Manager 1

Financial Manager 1

Operational Assisstant 1

TOTAL 6

GeneralManager

OperationalManager

Operationalassistant

FinancialManager

MarketingManager

AdministrativeManager



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6.4 Schedule of Tasks and Responsibilities

Position Tasks and Responsibilities

General Manager 1. To make sure the business runsmoothly based on the

objectives.

2. To monitor the business

operation under control.

3. To identify the business

objectives, rules and business

procedures in order to achieve

the objectives.

4. A leader in meetings or

seminars regarding thebusiness

Administration Manager 1. Organize their divisions so that

the staff know exactly what role

each has to play.

2. Schedules, prepares agenda,

maintains minutes and

performs administrative duties

3. Maintain andorganizes file and records for all

efficient operation of the office.

4. Determine the remuneration

and allowances for staff.

Marketing Manager 1. To promote our business and

services to the public.

2. Updating the promotion style

while also creating new ideasto attract customers.

3. Give good services to attract

the customers.

4. Analyze the strengths and

weaknesses of competitors



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Operation Manager 1. Handling customer complaints

and suggestions in a pleasant,

efficient, and professional

manner

2. Operational manager basicallyconcerned with the production

of goods and methods of

services being delivered

Financial Manager 1. Responsible of the cash flow

and budgeting plan of the

business

2. Analyzing, controlling, and

record the cash flow of the

business

3. Keeping all the financial records

and business account in safe

place.

4. Preparing annual account and

advisor in financial aspects

5. Preparing paycheck



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6.5 List of Office Equipment

Items Quantity Price/per

Unit (RM)

Total Cost

(RM)

Office desk 2 300 600Computer set 1 1600 1600

Cabinet (8 Compartment) 2 150 300

Fax & Telephone Machine 1 450 450

LCD Projector 1 300 300

Sofa Set 2 800 1600

Meeting table 1 1000 1000

Refrigerator 1 250 250

Water dispenser 1 100 100

Coffee Table 1 200 200

Stationaries - - 150

Total - - 6550

6.6 List of Fixture & Fittings

Items Quantity Price /per

Unit (RM)

Total Cost

(RM)

Air Conditioner (ceiling cassette) 1 3100 3100

Water sprinkle 2 300 600

CCTV set 1 1000 1000

Flame Extinguisher 1 150 150

Total - - 4850



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6.7 Administration Budget

Fixed Assets

Expenses (RM)

Monthly

Expenses

(RM)

Other Expenses

(RM)

Fixture & Fittings 4850

Office equipment 6550

Rental 2000

Utilities 200

Renovation 7000

Deposit

Rental

Utilities

4000

400

Business Registration Fee(per year)

60

Business License 150

11400 2200 11610

Total 25210



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6.9 Shop Plan Layout



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6.10 Business Hours

Algojo operation starts as below. We choose the following time because

most of our target market free during the time we opened. On Saturday and

Sunday we lengthen our operation hours as it is the time where people look forproduct on their free time.

Business time: Weekdays

Monday – Thursday : 10.30 am – 9.30 pm

Business time: Weekends

Saturday & Sunday : 10.30 am – 11.30 pm



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7.0 MARKETING PLAN



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7.1 Product Description

Product Description

Selling local and independent brand of

clothing for teenagers and adults

Algojo provide shirts and other type of

streetwear clothing from various

brands that is considered to have

emerged not from studios, but from the

grassroots. Street fashion is generally

associated with youth culture, and is

most often seen in major urban centers

We are very committed towards our

customer’s satisfaction and critics. So

any positive and negative feedbacks are

always welcomed.

Our shop is conducive guaranteed.

Including air-conditioned environment

and other basic necessary features such

as toilet and fitting room.

Brands (Clothes)

Volcom



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The Hundreds

Macbeth

Diamond & Co. Supply

Obey Propaganda

Vans



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Rebel8

Undefeated

Supreme

Huf

Brands (Sneakers)

Macbeth



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Nike Stefan Janoski

Vans

7.2 Target Market

The target market is defined as the groups of customers that have needs and

want that can be satisfied by the business through the supply of services and also

goods.

Our shop is situated at Seri Iskandar, which is very near to many learninginstitutions, namely Universiti Teknologi Petronas, UiTM Perak, and KPM Seri

Iskandar. Based on research done, there are about approximately 80,000 students

in total around this area. Therefore, our product may get a higher demand from

this group of people. Total population for this area is 200,000 consisting working

people, resident and students. 55% of the population is students, while 40% is the

working people and the remaining 5% is the resident here.



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7.3 Market Size(Clothes)

Potential

Customer

Estimated No.

Of Customer

Standard Price

(RM Per Shirt)

Amount

(RM/Per

Month)

Amount Per

Year (RM)

Student (55%) 2,860 44 125,840 1,510,080

Working

people (40%)

2,080 44 91,520 1,098,240

Resident (5%) 260 44 11,440 137,280

TOTAL 2,745,600

7.4 Market Size (Sneakers)

Potential

Customer

Estimated No.

Of Customer

Standard Price

(RM Per Shoe)

Amount

(RM/Per

Month)

Amount Per

Year (RM)

Student (55%) 66 285 18,810 225,720

Working

people (40%)

48 285 13,680 164,160

Resident (5%) 6 285 1,710 20,520

TOTAL 410,400

Total Market Size = RM 2,745,600 + RM 410,400 = RM 3,156,000

7.5 Competitors

Name Of Company Address

Rare House Bundle No 12, Persiaran SIBC 2, 32610 Seri

Iskandar Perak

CTU Bundle No. 15 Jalan PP6 Bandar Universiti


Bundle World (Multiple Famous Brand

Of Clothing

No 9, 10 Persiaran Dataran 6, 32610

Seri Iskandar Perak



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7.6 Strength and weakness of competitor

Name of company Strength Weakness

Rare House

Bundle

All clothes are

arrangedaccordingly to

their size, labeled

and tagged,

making it easier

for customer to

browse easily at

their premise.

Premise is quite

small and havelimited pool of

selection to be

chosen

CTU Bundle Very well-knownamong the

resident because

they are the oldest

among our

competitor

Veryuncomfortable to

shop at due to lack

of facilities,

namely fan.

Bundle World Have numerous

amount of clothes,

especially jeansand trousers

Premise is big,

which consists of 2

lots.

Most of the

clothes are low

quality and lookslightly overused.



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7.7 Market Share

Before :

Company Percentage (%) Total Per Year (RM)

Rare House Bundle 40% RM 1,262,400

CTU Bundle 25% RM 789,000

Bundle World 35% RM 1,104,600

Total (RM) 100% RM 3,156,000

After :

Company Percentage (%) Total Per Year (RM)

Rare House Bundle 40% RM 1,262,400

CTU Bundle 20% RM 631,200

Bundle World 30% RM 946,800

Algojo 10% RM 315,600

Total (RM) 100% RM 3,156,000



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7.8 Sales forecast

Year Month Sales forecast (RM)

1 January

New year sales

26,300

February

CNY sales

26,300

March 21,040

April 21,040

May 21,040

June 26,300

July

Eid Mubarak sales

31,560

August

Merdeka Sales

31,560

September 21,040

October 26,300

November 31,560

December

Christmas eve

Year end sales

31,560

Total RM 315,6002 (110% x RM 315,600) RM 347,160

3 (115% x RM 347,160) RM 399,234



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7.9 Marketing strategy

Service strategy

Brand

Service

We are working towards giving 100% satisfaction to our customer in the

quality and brands of clothing we provided.

Serve our customer with multiple choices of local and international

streetwear brands of clothing in our shop.

Making sure that the brands we choose to sell is adherence to the demand

of our customer



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7.9.1 Price Strategy

Cost-based pricing

Our partnership is using cost based pricing as it is the most common way used by

all retailers nowadays. Basically, you just add a standard percentage mark up

based on cost of items. Therefore, the mark up act as a profit margin for our

business.

Calculation of mark-up profit

Cloth selling price

: RM 39

: RM 49

Mark-up percentage is 35%

Cost of Cloth

: RM 25.35

: RM 31.85

Sneaker selling price

: RM 285

Mark-up percentage is 40%

Cost of Sneaker

: RM 203.57



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7.9.2 Place Distribution

7.9.3 Promotion

Basically, we have 7 promotion strategies on how to gain customers from time to

time. They are :-

Distributing flyers and brochures by hand and also from house to house

Distribution of business card

Distribution of stickers

Sponsoring gig events

Opening our own booth at many clothing events, such as Tempatan Fest,

Ipoh Calling and many more.

Social network Hanging banner in the neighborhood.

CustomerRetailerSupplierManufacturer



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Flyers

Flyers are handed out at public such as in front of the shopping area,

distributing at housing area in the neighborhood, and also giving it

personally to friends and relatives.

Business Card

Business card includes our logo, contact information and address of our

shop

Business card is distributed by hand or can be collected individually at our

reception counter



51

Stickers

Stickers are distributed along with every purchase made.

Sponsoring events

In the near future, we will be one of the co-sponsor of Mesco Music Festivalat Ipoh, this event is called Youth of Today and this is a huge chance for us

to make ourselves become more established in this industry.

Booth

From time, to time, we might end up joining major clothing event such as

Tempatan Fest, which is a huge streetwear event in Malaysia nowadays.

Banner



52

Social Network

We also advertise our product through major social sites such as Facebook,

Instagram, and Twitter

instagram.com/Algojoss

twitter.com/Algojoss

facebook.com/Algojoss



53

7.10 Marketing Budget

Marketing Budget Table

Items Fixed Asset

(RM)

Other Expenses

(RM)

Signboard 2000

Promotion :

- Flyers

- Stickers

0.10 x 300 = 30

1.00 x 300 = 300

Business card 0.5 x 200 = 100

Banner 80

2000 510

Total 2510



54

8.0 OPERATIONAL

PLAN



55

8.1 Introduction

Operations management is defined as the process of managing every

single resource to produce output through the transformation process. It consists

of three main components, i.e. business input, transformation system and output.Entrepreneurs should plan their operations activities to ensure that the business

will meet customers’ demand and expectations, which include parameters such as

quality, quantity and time. For our store, we focus more on the quality of the

clothing that we provide to customers. Operations plan demonstrates the

operational aspect of the business that is crucial in transforming the business

input into output. It will ensure the business to be able to produce the product or

to provide the services that the business had planned in the marketing plan.

To make the operation run according to the plan that had been set up before, the

planning must be futuristic in nature. So, the operation management needs to do

lots of research and study on how to run the business efficiently and in most

effective ways. Operation manager also have to always try to find new strategy to

make sure the business operates smoothly and be able to adapt with a new

incoming problems in the future



56

8.2 Process Planning

Customer can try the clothes they want first

Our operational assistant will assist them in providing

information regarding the products

Customer came to our shop and look at the products we have

Customer will decide whether they want to buy the product or

not.



57

8.3 Operation layout

Layout based on marketing



58

8.4 Production planning

Calculation of output per day

Average sales forecast per month = RM 22,880

Price per unit = RM 44

Number of output per month = RM 22,880

RM 44

= 520 units

If the number of working days per month is 26 days

The amount of output to sale per day is:

=520 units

26 days

= 20 units



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Calculation of output per day

Average sales forecast per month = RM 3,420

Price per unit = RM 285

Number of output per month = RM 3,420

RM 285

= 12 units

If the number of working weeks per month is 4 weeks

The amount of output to sale per week is:

=12 units

4 weeks

= 3 units



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8.5 Schedule of Remuneration/Manpower planning

Since we are implementing partnership system, our profit and loss are distributed

evenly among partners. Therefore, we do not have any remuneration except for

the Operational Manager, the one who handling all matters at the shop at day-to-day basis and a staff who will providing all sort of assistance to our operational

manager.

Position Monthly

Salary

(RM)

SOCSO

2%

EPF

13%

Total

(RM)

Operational Staff 900 18 117 1035

8.6 List of shop equipment

Item Quantity(Unit) Cost per unit(RM) Total cost (RM)

Stationaries - - 150

Clothes hanger - - 300

Shoes rack 1 250 250

Desk 1 290 290Clothes rack 2 25 50

Stool 3 10 30

Bench 1 260 260

Sofa set 2 300 600

Display shelves 6 400 2400

Counter desk 1 180 180

Total 4510



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8.7 Machine and & Equipment Planning

Item Quantity Price/unit

(RM)

Total Price(RM)

Cash register 1 1,100 1,100

Air-

conditioner

1 2980 2980

Total 4,080



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8.8 Operation budget

Item Fixed

Asset(RM)

Monthly

Expenses(RM)

Other

Expenses

Shop equipment

Machine and Equipment:

Motor vehicles

Inventories:

Shirts

Sneakers

Carriage Inward & Stamp Duty

Wages +EPF +SOCSO

Fuel

Insurance Motor Vehicles

4,510

4,080

15,000

16,359.2

3,053.55

400

1,035

300

450

Total 23,590 21,147.75, 450



63

8.9 Location planning

No 155, Persiaran SIBC6,

Seri Iskandar Business Centre,

32610, Seri Iskandar,

Perak



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8.10 Operation Hours

Algojo operation starts as below. We choose the following time because

most of our target market free during the time we opened. On Saturday and

Sunday we lengthen our operation hours as it is the time where people look forproduct on their free time.

Operation time: Weekdays

Monday – Thursday : 9.30 am – 10.30 pm

Operation time: Weekends

Saturday & Sunday : 9.30 am – 12.30 am



List of supplier

Moose Limited

8110 Remmet Ave

Los Angeles CA 91304

United States

☎ +1 818 206 8520

www.mltd.com

business plan algojo

Documents