FUNDAMENTALS OF ENTREPRENEURSHIP (ENT300)

BUSINESS PLAN

GOCHOC

PREPARED BY

FACULTY & PROGRAMME : FACULTY OF BUSINESS MANAGEMENT

DIPLOMA IN BUSINESS STUDIES
TRANSPORT (BA117)
SEMESTER :5
PROJECT TITLE : BUSINESS PLAN OF GOCHOC
GROUP MEMBERS :1. MUHAMMAD ARIF IKHWAN BIN AMINUDDIN
(2017251892)
2. MUHAMMAD EIZHAM BIN ISMAIL
(2017252274)
3. NURAMIRA BINTI SAHARUDDIN
(2017251952)
4. SITI NADHIRA BINTI MOHD YUSOFF
(2017223508)
5. ZULEEYA AQILAH BINTI MOHD
JAMALUDDIN
(2017252252)

PREPARED FOR

MADAM FAIRUZ BINTI RAMLI

SUBMISSION DATE

13 DECEMBER 2019

1
LETTERS OF SUBMISSION

Diploma in Business Studies (Transport) BA117

Faculty of Business Management (Transport)
Universiti Teknologi MARA Kampus Pasir Gudang
81750 Johor Darul Takzim 01 JANUARY 2020

Madam Fairuz Binti Ramli

Lecturer of Fundamentals of Entrepreneurship (ENT300)
Faculty of Business Management
Universiti Teknologi MARA Kampus Pasir Gudang
81750 Johor Darul Takzim

Dear Madam,

SUBMISSION OF BUSINESS PLAN (ENT300)

According to the title above, we would like to submit our business plan for our business
name given GoChoc Sdn. Bhd. that consists of all details, examples and documents which is
located in Bandar Seri Alam, Johor.

2. Below is the list of group members that are involved in completing the business plan.

SITI NADHIRA BINTI MOHD YUSOFF 2017223508

MUHAMMAD ARIF IKHWAN BIN AMINUDDIN 2017251892

MUHAMMAD EIZHAM BIN ISMAIL 2017252274

NURAMIRA BINTI SAHARUDDIN 2017251952

ZULEEYA AQILAH BINTI MOHD JAMALUDDIN 2017252252

3. We hope that our business plan will satisfy you. Any mistakes happened in this business
plan are fully our responsible. All your kindness and cooperation are much appreciated.

Thank you.

Best regards,

2
NO TITLE PAGES

1.0 ACKNOWLEDGEMENT 4

2.0 INTRODUCTION 5

3.0 PURPOSE OF BUSINESS PLAN 6

4.0 COMPANY BACKGROUND 7-21

5.0 MARKETING PLAN 22-34

6.0 OPERATION PLAN 35-60

7.0 ADMIINISTRATION PLAN 61-72

8.0 FINANCIAL PLAN 73-88

9.0 REFERENCE 89

10.0 APPENDIX 90-91

 1.0 ACKNOWLEDGEMENT

Assalamualaikum W.T.B

First and foremost, we would like to express our biggest gratitude to our
beloved lecturer, Madam Fairuz Binti Ramli. She is one of our main supporters to complete
our business plan and briefing this project obviously. Hence, we can understand about this
subject ENT300 and got to know more about it. Without her clarification, guidance and
explanation, this business plan could not be done successfully.

Furthermore, we would like to thanks to our friends for giving us the valuable
support either in physical and spirit and always keep praying for us. We may not be able to
even continue our study in this university without their support.

Last but not least, we would like to thanks to our friends for giving us full spirit
and trust for us to keep doing this business plan when we feel hopeless. We would like to
thank you to our group members because we keep stay together as one group to do this
business plan and other project soon.
2.0 INTRODUCTION

The name given for our business is ‘GoChoc’ whereas Go stands for ‘come and have a try’
and Choc stands for ‘chocolate’. The combination of the words Go and Choc invites
customers to come and have a taste of our home-made chocolate cakes.

Nature of business: Our business is based on bakery and pastry food.

Industry profile: GoChoc is a start-up bakery retail establishment that more focus on
production and manufacturing. GoChoc expects to catch an interest of a regular loyal
customer through its variety of pastry products. The business plans to build a competitive
market position in the market area due to the industry experience and market challenges in
the area.

Location of business: 36, Jalan Bayu 33, Bandar Seri Alam, Masai, Johor

Business operational date: 01 February 2020

Prospects of business: In the future, GoChoc can make more variety of product and widen
its business through opening several branch offices in other states in Malaysia.
3.0 PURPOSE OF BUSINESS PLAN

Business plan is a written document that describes in detail how a business is going. A
business plan basically includes marketing plan, organizational plan, operation plan and
financial plan. Business plan was prepared for a few purposes. Below are some of the main
purposes of business plan:

i. Serve as legal documents that act as a guideline to the owner, investors supplier,
customers and business partners.

ii. To manage the resources obtain effectively. It is to ensure that business will become cost-
efficient in every task and to avoid from any wastage of resources.

iii. As a reference to avoid any miss-communication or misunderstanding between all parties

that involved in the business and at the same time for getting a trust from shareholders of a
business.

iv. Acts as blueprint for running and expanding the business. It is to ensure that activity in the
business going smoothly and aligned with the business goal, mission, vission and long-term
objective in the industry.

v. To secure outside financing. Financing concerns begin with start-up costs and then
continue with business expansion and new product development. Investors, banks or any
other lending institution will want to see a business plan.
4.0 COMPANY BACKGROUND

Name of the company GoChoc

Business address 36, Jalan Bayu 33, Bandar Seri Alam, Masai,
Johor

Website gochocbakeryandpastry.com.my

Email [email protected]

Social Media IG: GoChocCake

FB: GoChoc Cake
Telephone number 017-4872337

Fax number 06-4008880

Form of business Partnership

Main activity Baking

Date of operation 01 February 2020

Date of registration 01 January 2020

Registration number 20200315015

Name of bank Bank Islam

Bank Account number 0870206422

4.1 OWNER BACKGROUND

GENERAL MANAGER

Name Siti Nadhira binti Mohd Yusoff

Age 26 years old

Address No 11, Jalan Pertanian 33 Taman Universiti

81300 Skudai, Johor Bahru, Johor.
Telephone Number 013-7558153

E-mail [email protected]

Marital Status Single

Academic Qualification Bachelor in Business Management

(UiTM Puncak Alam)
Qualification Summary Skills Leadership and decision making

Experience 1 year as manager at Season Bakery

MARKETING MANAGER

Name Muhammad Arif Ikhwan Bin Aminuddin

Age 26 years old

Address No 56, Lorong Sungai Dua Utama 24, Taman

Sungai Dua Utama, 13800, Sungai Dua,
Butterworth Pulau Pinang.
Telephone Number 017-4872337

E-mail [email protected]

Marital Status Single

Academic Qualification Degree in Marketing

(UiTM Pasir Gudang)
Qualification Summary Skills Communication skill and information
technology skill
Experience 2 years as graphic designer at Fotomaya
company.
 OPERATION MANAGER

Name Muhammad Eizham Bin Ismail

Age 26 years old

Address No 34, Jalan berlian 5, Taman Cahaya Masai,

81700 Pasir Gudang, Johor.
Telephone Number 019-9131954

E-mail [email protected]

Marital Status Single

Academic Qualification Degree of Operation Management

(UiTM Puncak Alam)
Qualification Summary Skills Managing the operation business

Experience 1 year as operation manager of Secret Recipe

ADMINISTRATION MANAGER

Name Nuramira Binti Saharuddin

Age 26 years old

Address 04-14, Blok K, Jalan Tasek 64, Bandar Seri

Alam, Masai 81750 Masai, Johor Bahru, Johor.
Telephone Number 011-40454136

E-mail [email protected]

Marital Status Single

Academic Qualification Degree in Office Management

(UiTM Puncak Alam)
Qualification Summary Skills Information technology skills

Experience 1 year as supervisor at KFC

FINANCIAL MANAGER

Name Zuleeya Aqilah Binti Mohd Jamaluddin

Age 26 years old

Address No 36, Jalan Persiaran senawang 7, Taman

Cempaka Fasa 4, 70450 Seremban, Negeri
Sembilan.
Telephone Number 0193439910

E-mail [email protected]

Marital Status Single

Academic Qualification Degree in finance

(UiTM Pasir Gudang)
Qualification Summary Skills Calculation skills

Experience 2 years as accountant at Maybank

4.2 PARTNERSHIP AGREEMENT
Partners of GoChoc are obligated to sign this partnership agreement with two lawyers
serving as the witnesses for the signing of this agreement. The two lawyers are Joe Chia Ter
Tan and Farid Mustafa Bin Iman. They were appointed specifically for this purpose.

NAME IC NUMBER
1. MUHAMMAD ARIF IKHWAN BIN AMINUDDIN 931103-02-5033
2. MUHAMMAD EIZHAM BIN ISMAIL 930517-01-5535
3. NURAMIRA BIN SAHARUDDIN 931002-01-5338
4. SITI NADHIRA BINTI MOHD YUSOFF 930127-01-7252
5. ZULEEYA AQILAH BINTI MOHD JAMALUDDIN 930526-10-8370

Partners of GoChoc are stated as follows:

This business Partnership Agreement binding the partners for the following aspects:
1) Partnership’s name
The business is registered under the Business Registration Act 1956 (Amendment
1974) with the name of GoChoc. The business partnership is focused on the
production of chocolate-based products.

2) Business form
Business operation and administration will be based on Business Registration Act
1956 (Revised 1978).

3) Business location

36, Jalan Bayu 33, Bandar Seri Alam, Masai, Johor

4) Term
The partnership shall begin on 1st February 2020 and shall continue until the
termination of contract or any other circumstances according to the Partnership Act
1961.
From the consent of all the partners, the partners agreed that:
i) Run the company until contract is terminated.
ii) Prohibited from dissolving the partnership without the consent of other
partners in this business.

5) Date of commencement
 GoChoc will be commencing on 1st of February 2020.

6) Partner’s position in the business

NAME POSITION
1. SITI NADHIRA BINTI MOHD YUSOFF GENERAL MANAGER
2. MUHAMMAD EIZHAM BIN ISMAIL OPERATION
MANAGER
3. ZULEEYA AQILAH BINTI MOHD JAMALUDDIN FINANCIAL MANAGER
4. MUHAMMAD ARIF IKHWAN BIN AMINUDDIN MARKETING
MANAGER
5. NURAMIRA BINTI SAHARUDDIN ADMINISTRATIVE
MANAGER

7) Profit or Loss
The amounts of the partnership have to divide equally between all of the partners. The net
closes shall be equally by the partners. A separate income account shall be maintained for
each partner. Partnership profit at 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. The partners will distribute profit according
to the capital distribution. Any losses will be liable among partner equally according to the
Partnership Act 1961.

NO NAME CONTRIBUTION

1 SITI NADHIRA BT MOHD YUSOFF RM 4000

2 MUHAMMAD ARIFF IKHWAN BIN RM 3302

AMINUDDIN

3 MUHAMMAD EIZHAM BIN SIMAIL RM 3302

4 NURAMIRA BT SAHARUDDIN RM 3302

5 ZULEEYA AQILAH BT MOHD RM 3302

JAMALUDDIN

8) Management of Salaries
NAME SALARY
1. SITI NADHIRA BINTI MOHD YUSOFF RM 1300 / month
2. MUHAMMAD EIZHAM BIN ISMAIL RM 1200 / month
 3. ZULEEYA AQILAH BINTI MOHD JAMALUDDIN RM 1200 / month
4. MUHAMMAD ARIF IKHWAN BIN AMINUDDIN RM 1200 / month
5. NURAMIRA BINTI SAHARUDDIN RM 1200 / month

9) Interest
No interest shall be paid on the initial contributions to the capital of the partnership or
on any subsequent contributions of capital.

10) Perquisite
Any additional pay is to follow the current profit and will be present in the end of
annual financial report.

11) Partnership Property

Any property is owned by the partners in the partnership because this type of
business has no separate legal entity (Partnership Act 1961 S.22).

12) Management Duties and Restrictions

The partners share equal rights in the management of the business and each partner
shall devote their entire time to the conduct of the business. Without the consent of
other partners, neither partner can on behalf of the partnership to 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 the 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 the business.

13) 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.

14) Books
The partnership books shall be maintained at the principal office of the partnership
and each partner shall at all-time have access there to. The books shall be kept on a
fiscal year basic, and shall be closed and balanced at the end of each fiscal year. An
audit shall be made as of the closing date.

15) Voluntary
 The partnership may be dissolved at any time by agreement of the partners, in which
events the partners shall proceed with reasonable promptness to liquidate the
business of the partnership. The partnership name shall be sold with other assets of
the business. The assets of the partnership business shall be used and distributed in
the following order:
i) To pay or provide for the payment of all partnership liabilities and liquidating
expenses and obligation;
ii) To equalize the income account of the partners;
iii) To discharge the balance of the income accounts of the partners;
iv) To equalize the capital accounts of the partners;
v) To discharge the balance of the capital accounts of the partners.

16) Death and Dissolve

Partners of GoChoc had decided to run the business in 20 years from the date of
commencement. If there is a case where a partner from GoChoc is dead or quit or
refuse to obligate, the business will not be dissolved unless the remaining partners
agreed to dissolve it. The remaining partners have the rights to choose a new
member as a replacement for the old one.

17) Arbitration
Any controversy or claim arising out of or relating to this agreement, or the breach
here of shall be settled by arbitration in accordance with the rules, then obtaining of
the Malaysia Arbitration Association and judgment upon the award rendered may be
entered in any court having jurisdiction thereof. In witness where of the parties have
signed this agreement.

18) Bankruptcy or Dissolution of Partnership

i. When the partner is found lunatic, permanently unsound mind [Partnership
Act 1961 S.37(a)]
ii. When a partner permanently incapable of performing his part of the business
[Partnership Act 1961 S.37(b)]
iii. When a partner calculated to affect prejudicially the carrying on the business
[Partnership Act 1961 S.37(c)]
 iv. When a partner wilfully or persistently commits a breach of the partnership
agreement of otherwise [Partnership Act 1961 S.37(d)]

19) Labour Rights

Each partner is entitled 52 days leave per year.

20) This agreement will be authorized from the moment partners signing the
agreement.
21) Information regarding the business must be informed to the partners and the
company’s confidential info must be kept secret at all time.

Agreed by all partners,

….…………….…………. ……………………………
( ) ( )

….………………………. ……………………………
( ) ( )

….………………………..
( )

4.3 ORGANIZATIONAL CHART

4.4 LOCATION
PHYSICAL LOCATION OF BUSINESS

Business
Location

Our business is located at No 36, Jalan Bayu 33, Bandar Seri Alam, Masai, Johor. This
location is chosen because it is a centre of attraction as it is located near students and
visitors that comes to Seri Alam. It is a residential area where the products can be easily
delivered to customers. Furthermore, this location is located near suppliers. GoChoc is
registered on 21 October 2018 and start operating on 27 January 2019.
4.5 BUSINESS BUILDING

This is the images of GoChoc business location. The business operates on the upper level
of the building. Water supply is from Syarikat Air Johor (SAJ) meanwhile, electricity supply is
from Tenaga Nasional Berhad (TNB).
4.6 INTERIOR DESIGN

The owners of GoChoc decided to choose the interior design of the business location as
shown in the picture. Facilities provided are complete and equip with suitable storage room.
MARKETING PLAN
5.0 PRODUCT DESCRIPTION

GoChoc offers to their customer’s varieties of cakes with different flavour and filing with a
reasonable and affordable price that everyone can buy it. GoChoc also will maintain their
quality of product with efficient and effectiveness strategy and hire a good worker. This is
because GoChoc wants to get a lot of loyal customer and maintain their profit.

GoChoc provide a three type of flavour cake which is chocolate banana, chocolate oreo and
chocolate cheese. The main ingredient the cake is actually a delicious of chocolate. Gochoc
provide a different flavour because GoChoc want to supply their product with any level of
age.

PRODUCT DESCRIPTION

1) Banana chocolate cake A fluffy and yummy cake with the combination
of sweet banana and moist chocolate.

2) Oreo chocolate cake A sweet cake with the lovely combination of

crunchy oreo and chocolate.

3) Cheese chocolate cake A perfection taste with fresh cheese and

chocolate.
5.1 TARGET MARKET

A market is people or organizations with needs or wants and with the ability and the
willingness to buy. Target market is important for marketing planning to only focus on type of
customers needed to reach. Identifying customers that helps the business become
successful makes the products accepted to greater market area. Target market analysis is
crucial to ensure that marketing plan align with customers’ demand, hence earn good profit
to develop business performance.

Target market is a group of consumers or organizations most likely to buy a company’s

products or services. Focusing on customers that likely to buy a company’s products help in
lowering expenses as marketing to everyone is an inefficient and expensive approach.

GoChoc decided to highlight on three main target market which are kids, teenagers and
event planners. Consumer of the product should be someone who likes sweet tastiness in
foods. Kids, teenagers are the most suitable target market for GoChoc as the products sell
are chocolate cakes. Chocolate cakes are sweet. Therefore, it is not suitable for senior
citizens, especially those who suffers diabetes and need to cut sugar in their diet.

Market segmentation is the process of dividing a market into meaningful, relatively similar,
identifiable segments or groups. Bases for segmentation include geography, demographics,
psychographics, benefits sought and usage rate.

2.1. Demographic Segmentation

Demographic segmentation choosen by GoChoc is age. GoChoc chooses kids and

teenagers as target market. This is because kids often like sweet desserts. The taste of
chocolate in GoChoc products are sweet.

2.2. Psychographic Segmentation

Market segmentation is on the basis of lifestyles. Event planners are highlighted in this
segmentation due to the lifestyle of event planners as their daily activities involved cakes.
Taking an example, if people wants to celebrate birthdays, they would hire an event planner.
5.2 MARKET TREND, SHARE AND SIZE

5.2.1. Market Trend

Market trend differs from time to time. However, chocolate always steal people’s heart and
caught people’s attention. Chocolate does not lose its place in market. Demand for
chocolate cakes, with its moistness does attract kids and teenagers to at least try it once.
The thickness and sweetness of cocoa taste in chocolate cakes combines with trending and
hot-selling cheese is best to draw customers attention. Nowadays, Malaysian hunts for
cheesy foods, one of the reasons why GoChoc add on chocolate cheese cake on its menu.

5.2.2 Market Share

 Before Entry of GoChoc

Company Name Sales Revenue (RM/ per month) Percentage (%)

Secret Recipe 2,558,333 73.36

SDS 629,167 18.04
Dihana Bakery&Café 300,000 8.6
Total 3,487,500 100

 After Entry of GoChoc

Company Name Sales Revenue (RM/ per month) Percentage (%)

Secret Recipe 2,558,333 73.36

SDS 629,167 18.04
Dihana Bakery&Café 287,100 8.6-4.3
= 4.3

GoChoc 12,900 4.3

Total 3,487,500 100

5.2.3. Before entry of GoChoc.

Sales

Secret Recipe SDS Dihana Bakery&Café

5.2.4 After entry of GoChoc.

Sales

Secret Recipe SDS Dihana Baker&Café GoChoc

5.3 Market Size

Market size is the selling of products or services to specific population within a specific area.
Market size is determine based on specific area targeted for selling products. GoChoc
selects Bandar Seri Alam, Johor.

(Seri Alam Area)

According to Wikipedia, total population: 220,000

Target customer: 1.2% x 220,000 people

: 2640 people monthly

No. of people DEMAND PER MONTH

Local People (100%) 2640 people x 1 unit 2640 units x RM5

= 2640 units = RM13,200

Assuming that each GoChoc potential customers will spend average price of RM5 for 1 box
of GoChoc products, making an average sale of RM5 per day. It is estimated at least 1.2%
out of 220,000 people in Seri Alam will buy GoChoc products.

Market size per month = Population x Average spending

= 2640 people x RM5

= RM13,200

Therefore, GoChoc is estimated to gain profit of RM13,200 per month.

5.4. ASSESSING COMPETITION

COMPETITOR STRENGTH WEAKNESS

Secret Recipe  A lot of choices  Only available in town

 Have a lot of franchise  Only for high income person
 A well-known restaurant  Inconsistent quality of service
 Quality of product

SDS  Have a lot of stall in shopping  Only available in Johor

mall  Did not provide a delivery
 Good price service
 Have a regular customer
 Many choices

Dihana  Freshly baked  Many of their stall have limited

Bakery&Cafe  Many choices space
 The price is affordable  More focus on bread

5.4.1 Ranking of the competitors

Rank no Competitors Name of the Company

No.1 Secret Recipe Secret Recipe Cakes and Café Sdn. Bhd
No.2 SDS SDS Bakery & Café
No.3 Dihana Bakery&Café Dihana Bakery&Café

5.5 SALES FORECASTING

Sales forecast in 2020 - 2021

 MONTH TOTAL SALES (RM) DESCRIPTION
FEBRUARY 5800.00 Normal sales as our business
still new in market
MARCH 10681.00 People start to know our
product
APRIL 10681.00 Sales are maintained due to no
aggressive marketing plan
MAY 10681.00 Sales are maintained due to no
aggressive marketing plan
JUNE 11181.00 Sales starts increase slowly
JULY 14181.00 Sales increase aggressively
due to eid festival
AUGUST 10681.00 Decrease in sales due no big
festival
SEPTEMBER 10681.00 Sales as same as August
OCTOBER 13181.00 Average sales recorded
NOVEMBER 19015.00 Increasing in sales due to
people start like GoChoc
product
DECEMBER 19014.00 Increasing in sales as people
start holiday
JANUARY 19023.00 End of year, sales keep
increasing because people
start buy the product frequently

1st year 154,800.00

2nd year (3%) 159,444.00
rd
3 year (6%) 169,011.00

The firsts year total sales are RM 154,800.00 The sales are predicted to be increased by 3%
in second year to become RM 159,444.00 and continuously increase by 6% and the total
sales will be RM 169,011.00 in third year.

5.6 DEVELOPING MARKETING STRATEGY

8.1 Marketing Strategies

Marketing strategy play an important role in achieving any goal or objective for any business
or company. GoChoc also have our own marketing strategies to achieve their goal and
objective. GoChoc have setting their marketing strategies based on 4p’s formula which is:

i. Product
ii. Price
iii. Place/Distribution
iv. Promotion

i) Product.

GoChoc is the best product to be marketed to the customers. We have to ensure that our
product is in hygiene, healthy and high quality to get high satisfaction from our customers.
GoChoc production is based on bakery and pastry food.

Our product is based on chocolate which we are provide variety type of more topping
on our chocolate cake. Our target is to provide the product that will be suitable to many types
of customers. The specialty of our product is we will try hard to follow as what our customers
wants.

ii) Price.

We have decided to sell and market our product with reasonable and affordable price and
also can be purchased by any type of customer’s income. Since our business is still new in
market, the price that we provide is much cheaper than the other existing product that same
with me. We hope it will be accepted and can satisfy our customers and also hope that we
can attract as many customers as we can.

Product Cost Price Selling Price

(RM) (RM)
1. Banana chocolate cake RM 1.32 RM5

2. Oreo chocolate cake RM 1.30 RM5

3. Cheese chocolate cake RM 3.54 RM6

iii) Place/Distribution.

Our business has established a structured and controllable distribution system to ensure the
product offered to the target customers. The form of distribution channel is by using a direct
consumer approach and also indirect consumer approach.
 The place that we choose to run our business is located in the residential area which
is easy to our customers to get our product. The shop lot that we choose is located at No 36,
Jalan Bayu 33, Bandar Seri Alam, Masai, Johor. This place is truly strategic. If there have an
issue for our customers to find our shop, we have put a big signboard to help old and new
customers to find our shop easily. This place also is very easy for customers and us to deal
with the map to found our shop.

iv) Promotion.

Promotion is really important to market our product to the consumer. Since our product is still
new born in market, good promotion will be a key element in putting across the benefits of
our product to the customers. Well-designed promotional strategies can ensure our long-
term success, bring more customers and ensure profitability for our business. Beside use
old style of promotion, we use social media medium to attract new customers among them
is:

1. Facebook.

We take alternative which we believe to be more efficiency and effective as this medium
is widely used by people nowadays along the technology and IT lifestyle that we had all this
time. Facebook is the medium which we can advertise our GoChoc product in it. We believe
Facebook can increase our number of customers from time to time.

2. Instagram.
 Other than Facebook, we can also choose Instagram as our marketing medium. Almost
all the people nowadays have Instagram and we are already knowing that Instagram is a
most popular application that people use and open in a day as they want to see their friend
picture all over the worlds. So, we take this opportunity to put our advertisement in it by
creating our own Instagram account and follow as much as we can. There, we can update
our business from time to time and always upload the picture of our regular customers that
already come and taste our GoChoc product.

3. Business card

We decided to make our own business card for the purpose of the marketing of our product
to our customers. Business card definitely can help our business to expand bigger from time
to time as it will be distributed to a lot of people at some places around Bandar Seri Alam. By
doing this, our customers out there can acknowledge about our business and will come to try
our product. They also can contact us by using the number stated on our business card.

5.7. PLANNING FOR MARKETING PERSONNEL

GoChoc has planning for marketing personnel to complete and success our marketing tasks
in order to promote our products to the people as our products are still unknown in the
market. GoChoc has decide to bring marketing in house and also a few outsource marketing
in our business. In GoChoc business, we hired marketing manager, Arif Ikhwan which is in-
house team as a top of marketing department to handle marketing tasks of our business.
With an in-house team, we have dinstinct advantage of controlling the full work environment
of the workers.

Next, GoChoc also bring outsource marketing in our business which is we hiring a third
party to perform a specific task within an organization. We hired six persons to become an
agent which is only located in Johor but different district to handle marketing for brands and
business to grow the business effectively as the availability of product are limited. Other than
that, we also hire runner in our business to deliver the product orders to the customers which
is called cash on delivery service. Our products also available at several bakery shops in
Johor Bahru such as at Saudaar Bakery&Cafe to introduce our products to all people and
wider our market.

Furthermore, GoChoc use social media as platforms to market the products as well. Social
media allows business to be in direct contact with target customer. Social media marketing
has proven to be one of the most effective channels to promote products online. There are
many ways that GoChoc use in social media marketing such as:

a) Promote product in social media communities

b) Share creative visual content for better engagement
c) Advertise product to reach wider
d) Provide social proofs to build trust in the product
e) Run contests on social media to attract attention of people
5.8 MARKETING BUDGET

Promotion purpose:

Item Total Price (RM)

Business Card RM12

Banner RM80

Labelling RM100

Brochure RM150

Item Fixed asset expenses Others expenses Total

Price (RM) RM80 RM262 RM342

OPERATIONAL PLAN
6.0 PROCESS PLANNING FOR MANUFACTURING

Process flow chart of GoChoc Cake

Standby all the raw material to bake the cake on table to make sure the
process is become easier

Pre-heat oven to 350 degrees.

Mix together flour, cocoa powder, baking powder and baking soda.

Insert either banana, oreo or cheese together.

In a large bowl, beat butter, eggs and vanilla and add sugar.

Beat on medium to high speed for about 3-4 minutes until well mixed.

Alternately combine in flour mixture and milk to batter while beating and
continue to beat until batter is smooth.

Pour equal amounts of butter into greased and floured round cake
pans.

Bake 30 to 35 minutes and remove from oven and allow cakes to cool
in pans for a few minutes.

Place cakes on a wire rack, to them allow to completely cool.

6.1 OPERATIONS LAYOUT

Based on the diagram above, GoChoc choose layout based on product where this type of
layout is suitable for business that has product focus or continuous flow production. GoChoc
design this layout based on sequence of activities to produce the product. Sequence of
activities include:

1. Receiving Area – Area to receive goods from suppliers.

2. Office – Room for staffs to do clerical work, do meetings and meet clients or agents.
3. Mixing Area – Platforms to mix ingredients for cakes.
4. Kitchen – Area for baking cakes.
5. Washing Area – Washing dishes and store appliances.
6. Store – Storage place for finished goods and raw materials.
7. Packaging Area – Place for staffs to do packaging.
8. Doors – Two main doors which are entry and exit doors.
6.2 PRODUCTION PLANNING

The production planning for the whole product

Average sale forecast per month for RM 4300.00

Banana Chocolate Cake
Price per unit RM 5.00

Number of outputs per month 4300/5 = 860 units

Working days per month 24 days

Total amount produced per day 860/24 = 35 units

1. Banana Chocolate Cake

2. Oreo Chocolate Cake

Average sale forecast per month for RM 4300.00

Banana Chocolate Cake
Price per unit RM 5.00

Number of outputs per month 4300/5 = 860 units

Working days per month 24 days

Total amount produced per day 860/24 = 35 units

3. Cheese Chocolate Cake

Average sale forecast per month for RM 4300.00

Banana Chocolate Cake
Price per unit RM 6.00

Number of outputs per month 4300/6 = 716 units

Working days per month 24 days

Total amount produced per day 716/24 = 29 units

6.3. MATERIAL PLANNING

1. Banana Chocolate Cake

N0 MATERIAL PRICE QUANTIT TOTAL
PER Y
UNIT
1. Wheat Flour RM 2.20 250 g RM 0.55
(1 kg)

2. Cocoa Powder RM 13.00 125 g RM 1.63

(1 kg)

3. Butter RM 5.40 80 g RM 1.73

(250 g)

4. Compound Chocolate RM 18.15 125 g RM 2.27

(1 kg)

5. Egg RM 0.40 2 eggs RM 0.80

(1 egg)
6. Sugar RM 2.25 125 g RM 0.28
(1 kg)

7. Baking Powder RM 1.50 5g RM 0.075

(100 g)

8. Bicarbonate of Soda RM 1.50 5g RM 0.075

(100 g)

9. Chocolate syrup RM 54.90 100 ml RM 1.10

(5 liter)

10. Vannila extract RM 2.65 2.5 ml RM 0.27

(25 ml)
 11. Banana RM 5.00 354 g RM 1.77
(1 kg)

Total cost of raw materials for whole cake RM 10.55

2. Oreo Chocolate Cake

N0 MATERIAL PRICE QUANTITY TOTAL

PER
UNIT
1. Wheat Flour RM 2.20 250 g RM 0.55
(1 kg)
2. Cocoa Powder RM 13.00 125 g RM 1.63
(1 kg)

3. Butter RM 5.40 80 g RM 1.73

(250 g)

4. Compound Chocolate RM 18.15 125 g RM 2.27

(1 kg)

5. Egg RM 0.40 2 eggs RM 0.80

(1 egg)
6. Sugar RM 2.25 125 g RM 0.28
(1 kg)

7. Baking Powder RM 1.50 5g RM 0.075

(100 g)

8. Bicarbonate of Soda RM 1.50 5g RM 0.075

(100 g)

9. Vanilla extract RM 2.65 2.5 ml RM 0.27

(25 ml)

9. Chocolate syrup RM 54.90 100 ml RM 1.10

(5 liter)
10. Oreo Biscuits RM 3.30 68.5 g RM 1.65
(137 g)

Total cost of raw materials for whole cake RM 10.43

3. Cheese Chocolate Cake

N0 MATERIAL PRICE QUANTIT TOTAL

PER Y
UNIT
1. Wheat Flour RM 2.20 250 g RM 0.55
(1 kg)
2. Cocoa Powder RM 13.00 125 g RM 1.63
(1 kg)

3. Butter RM 5.40 80 g RM 1.73

(250 g)

4. Compound Chocolate RM 18.15 125 g RM 2.27

(1 kg)

5. Egg (Grade A) RM 0.40 2 eggs RM 0.80

(1 egg)
6. Sugar RM 2.25 125 g RM 0.28
(1 kg)

7. Baking Powder RM 1.80 5g RM 0.075

(100 g)

8. Bicarbonate of Soda RM 1.49 5g RM 0.075

(100 g)

9. Vanilla extract RM 2.65 2.5 ml RM 0.27

(25 ml)

10. Chocolate syrup RM 54.90 100 ml RM 1.10

(5 liter)
 11. Cheese RM 8.70 85 g RM 2.96
(250 g)

Total cost of raw materials for whole cake RM 11.74

6.4. SUPPLIER OF RAW MATERIAL

ITEMS SUPPLIERS

Wheat flour, egg, sugar, banana, butter, COWBOY Kulai

salt, oreo biscuits
29, 20 Jalan Besar, Taman Kulai, Johor

Cocoa powder, baking powder, Happy Baker Zone

compound chocolate, bicarbonate of
11A Jalan Tembikai 4, Taman Kota Masai,
soda, chocolate topping, cream cheese,
81700 Pasir Gudang, johor
cheese

6.5 Packaging

NO ITEM PRICE QUANTITY TOTAL

1 Packaging box RM 0.30 96 units x 24 = RM 691.20

2304 units
6.6 Supplier of packaging

ITEM SUPPLIER

Packaging box Bake With Yen Bandar Seri Alam

48, Jalan Lembah 19, Bandar Baru Seri

Alam, 81750 Masai, Johor
6.7. MACHINE AND EQUIPMENT PLANNING

15.1. Machine (fixed assets)

NO ITEM QUANTITY PRICE PER TOTAL (RM)

UNIT (RM)

1 2 RM 130.00 RM 260.00

KITCHEN AID STAND MIXER

2 2 RM 450.00 RM 900.00

OVEN

TOTAL RM 1160.00

15.1.2 Ammount of machined required

The number of machines required for the produce of whole product

Number of machines required = [Planned Rate of Production per day ÷ machine

productive time per day] × Standard Production Time/Unit

1. Kitchen aid stand mixer = [12 ÷ 7] × 1.5

= 2 machines

2. Oven = [12 ÷ 7] × 1.5

= 2 machines
6.8. EQUIPMENT (FIXED ASSET)

NO ITEM QUANTITY PRICE PER TOTAL(RM)

UNIT (RM)

1 1 RM250.00 RM250.00

TOTAL RM250.00

6.9. KITCHEN UTENSILS

NO MATERIAL QUANTITY PRICE PER TOTAL (RM)

UNIT (RM)

1 3 RM 5.00 RM 15.00

MIXING BOWL
2 5 RM 6.90 RM 34.50

CAKE PAN
3 3 RM 2.10 RM 6.30

CLOTH
4 5 RM 2.00 RM 10.00
 GLOVE
5 3 RM 6.50 RM 19.50

MEASURING SPOON
TOTAL RM 85.30
6.10 SUPPLIERS MACHINE AND EQUIPMENT

ITEMS SUPPLIERS

Refrigerator, oven, sink, mop, lamp, Lazada

dustbin, air freshener, clock, fire
extinguisher, electric stove, mixer 7, Jln Kempas Utama 3/2, Taman Kempas
Utama, 81200 Johor Bahru, Johor

Table, chair, knife, apron, cake pan, IKEA

broom, mirror, spatula, measuring
33, Jalan Harmonium, Taman Desa Tebrau,
spoon, mixing bowl
81100 Johor Bahru, Johor

Hand Sanitizer Watsons

Tesco EcoTropics, Lot L11 Ground Floor,

PTD117754, Jalan Eko Perniagaan 7,
81700 Pasir Gudang, Johor

Cloth, plastic glove Cowboy Kulai

29, 20, Jalan Besar, Taman Kulai, 81000

Kulai, Johor

Hand soap, dishwashing liquid Southern Lion Sdn. Bhd. (Corporate Office
& Factory)

3, Jalan Firma 2, Kawasan Perindustrian

Tebrau 1, 81100 Johor Bahru, Johor
6.11 MANPOWER PLANNING

No of worker required = [Planned Rate of Production per day ÷ Worker Productive Time
per day] × Worker Standard Production Time/Unit

I. Mixing operator = [12 unit/day ÷ 7] × 1.5 = 2 operators

II. Baking operator = [12 unit/day ÷ 7] × 1.5 = 2 operators
III. Packaging operator = [12 unit/day ÷ 7] × 1.5 = 2 operators

No Position No of staff Salary per EPF (RM) SOCSO TOTAL

required month 11% (RM) (RM)
1.25%
1 Operation manager 1 1200 132 21 1047

2 Assistant operation 1 1000 110 17.50 872.50

3 Marketing manager 1 1200 132 21 1047

4 Finance manager 1 1200 132 21 1047

5 General manager 1 1300 143 22.75 1134.25

6 Administration 1 1200 132 21 1047

manager
6.12. OVERHEAD REQUIREMENTS

Operation overheads (indirect materials/ /maintenance/utilities)

No Types of overhead Monthly

Cost
(RM)

1 Electricity 700
2 Water 500
3 Machine Maintenance 200
4 Fuel 110
TOTAL 1510
6.13. LOCATION PLAN

Factors to be considered for choice of location

a) Prices of land rentals

The amount of money expected, required, or given in payment for something. The rental
payment of GoChoc shop is suitable with our business because the location is not in city
area.

b) Distance raw material / supplier

Distance is a numerical measurement of how far apart objects or points are. In physics or
everyday usage, distance may refer to a physical length or estimation based on other
criteria. The distance of raw material or supplier with GoChoc shop location is just nearby
such as Maslee, Econsave and KipMart.

c) Facility

Facility is a place, amenity, or piece of equipment provided for a particular purpose. The
facilities that have at GoChoc shop is parking, stair and many more. Its help GoChoc
members to run the business more smoothly.

d) Security:

Security is the state of being free from danger or threat. The GoChoc shop location is secure
because its near of police station. It also nearby GoChoc members house.

e) Labour supply

Labour is someone who work at GoChoc shop. The labour supply is easy for GoChoc to get
because the location of GoChoc shop is at residential area.
6.14. OPERATIONS HOURS

Operation Hours:

10:00 a.m. – 7:00 p.m.

Monday – Saturday (Sunday Off)

6.15. LICENSE, PERMITS AND REGULATIONS

I. Signboard licence
Every business needs a signboard for marketing and publicities and it is required for
avoiding unwanted trouble with the local authorities. The paperwork required to submit for
obtaining signboard license varies state to stat. Once the design and artwork are approved
then we need to visit the local city hall office that is Majlis Pembandaran Pasir Gudang
(MPPG) to obtain the signboard licence.

II. Halal certification

Halal certification provides assurance to the customer because it fulfils the Syariah law
which especially to the Muslims. It is also to ensure all of the process in the operation is in
perfect condition without doubt. The organization that has the right to issue this certificate is
Jabatan Kemajuan Islam Malaysia (JAKIM).

III. Health permits

A health permit is a permit to sell food and beverages that are cook or served to the public,
and which must be regulated for public safety. Health permit are typically part domain of a
country health department. Regulations requirements for types of food business that require
health permits vary widely.

IV. Direct sales licence

This licence is for the business door to door sales, postal sales and sales through electronic
transaction. It is based on the direct sales and anti pyramid scheme Act 1993

V. Typhoid injection

Typhoid injection is needed to the all staff to prevent the typhoid fever who carries the
bacteria that can spread to other people. When someone eats or drinks contaminated food
or drink, the bacteria can multiply and spread into the bloodstream, causing typhoid fever.
6.16. OPERATION BUDGET

Item Fixed Asset Monthly Expenses Other Expenses

Machine and Equipment 1410

Raw Materials 3141.12
Operation overhead 1510
Halal certificate 200
Packaging 691.2

TOTAL 1410 5342.32 200

6.17 IMPLEMENTING SCHEDULE

Activities Deadlines Durations

Incorporation of January – March 2018 3 months

business

Applications for permits January – April 2018 4 months

and license

Searching for business May – June 2018 2 months

location

Renovation of premise July – August 2018 1 months

Setup for business August 2018 2 weeks

Obtain of raw material September – October 2018 1 months

& machines &
equipment
Installation of machines November – December 2018 1 months
and equipment

Final check list January 2018 1 days

Grand opening February 2019

7.0. DESCRIPTION OF LOGO

ADMINISTRATION PLAN

TITTLE DESCRIPTION

The meaning of love at first bite is when the

a) Love at first bite customer eats the cake they will fall in love
and will repeat again.
The word of GoChoc shows as the
b) GoChoc businesses name that customer will know
about it.

The colour in the logo is brown because the

c) Brown colour main of cake ingredients are chocolate.

The smoke that has on top of the cake is

d) Smoke wanted to say that our cake is fresh from the
oven.
Since 2019 is the year that GoChoc started
e) Since 2019 the business.

The shape in the logo show that GoChoc is

f) Shape making a cake business.
7.1. ADMINISTRATION PERSONNEL

POSITION NO. OF PERSONNELS

General Manager 1
Administration Manager 1
Marketing Manager 1
Operational Manager 1
Financial Manager 1
General Worker 1
7.2. TASKS AND RESPONSIBILITIES

POSITION TASKS AND RESPONSIBILITIES

General Manager Responsible in managing the company
towards achieving company’s mission,
vision and objectives.
 To Identify and plan the business
objectives
 To oversee daily business
operations
 To train low-level managers and
staff
 To create and manage budget
 To improve revenue
 To hire employees
 To evaluate workers’ performance
and productivity
 To identify business opportunities
 To generate reports and give
presentations
Administration Manager Responsible in administration activities and
arrange the entire personnel administration
plan.
 To supervise day-to-day operations
of the administrative department and
staff members
 To hire, train and evaluate
employees, taking corrective action
when necessary.
 To develop, review and improve
administrative systems, policies and
procedures
 To ensure office is stocked with
necessary supplies and all
equipment is working and properly
maintained.
 To work with accounting and
management team to set budgets,
 monitor spending and processing
payroll and other expenses
 To collect, organize and store
information using computers and
filing systems
 To oversee special projects and
track progress towards company
goals
Marketing Manager Oversee the promotion of a business,
service, product or brand.
 To develop a pricing strategy that
maximizes profits and market share
but considers customer satisfaction
 To identify new customers
 To support sales and lead
generation efforts
 To create promotions with
advertising managers
 To understand and develop
budgets, include expenditures,
research and development
appropriations, return-on-
investments and profit-loss
projections
 To organize company conferences,
trade shows and major events
 To build brand awareness and
positioning
 To evaluate and maintain a
marketing strategy
 To communicate the marketing plan
 To evaluate competitors
 To handle social media and public
relation efforts
Operational Manager Providing inspired leadership for the
operation for one of organization’s lines of
business
 To make important policy, planning
and strategy decisions
 To develop, implement and review
operational policies and procedures
 To help promote a company culture
that encourages top performance
and high morale
 To oversee budgeting, reporting,
planning and auditing
 To work with senior stakeholders
 To ensure all legal and regulatory
documents are filed and monitor
compliance with laws and
regulations
 To work with the board of directors
to determine values and mission
and plan for short and long-term
goals
 To build alliances and partnerships
with other organizations
 To support worker communication
with the management team
 To identify and address problems
and opportunities for the company

Financial Manager Responsible of the cash flow and budgeting

plan of the business.
 To prepare business activity reports,
financial statements and forecasts
 To make sure financial legal
requirements are met
 To develop financial reporting
systems
 To find ways to reduce or maintain
 costs by studying financial reports
and business process
 To analyse market trends to
discover business opportunities and
maximize profits
 To aid management in financial
decisions
 To maintain up to date financial
system knowledge
7.3. REMUNERATION

POSITION NO. MONTHLY

EPF SOCSO TOTAL
SALARY
(11%) (1.75%) AMOUNT
(RM)
(RM) (RM) (RM)

GENERAL 1 1300 143 22.75 1134.25

MANAGER

MARKETING 1 1200 132 21 1047

MANAGER

OPERATION 1 1200 132 21 1047

MANAGER

ADMINISTRATION 1 1200 132 21 1047

MANAGER

FINANCIAL 1 1200 132 21 1047

MANAGER

GENERAL 1 1000 110 17.50 872.50

WORKERS

6 7100 781 124.25 6194.75

TOTAL
7.4. LIST OF OFFICE EQUIPMENT

N0 MATERIAL PRICE PER QUANTITY TOTAL

UNIT
1. Laptop RM 900 1 RM 900

2. Fire extinguisher RM 110 1 RM 110

3. Printer RM 200 1 RM 200

4. Phone RM 50 1 RM 50

TOTAL RM 1260

7.5 LIST OF FURNITURE

NO MATERIAL PRICE PER QUANTITY TOTAL
UNIT
1. Table RM 50 3 RM 150

2. Chair RM 30 3 RM 90

3. Rack RM 700 1 RM 700

TOTAL RM 940
7.6. VISION, MISSION, OBJECTIVE AND MOTTO

7.6.1. Vision of GoChoc

“To establish GoChoc as the trusted seller of the finest home-made cakes in the world while
leading its way towards becoming a key player in the food retailing business”

7.6.2. Mission of GoChoc

“To inspire and nurture chocolate lovers – a taste of chocolate each day combined with
different flavours”

7.6.3. Objective of GoChoc

a. To provide each customer a unique chocolate cakes experience

b. To be the leading retailer and brand of cakes provider

c. To gain a large share of market by catering specifically to a well-defined target audience

d. To provide high quality of products to customers

e. To nurture chocolate lovers

7.6.4. Motto of GoChoc

“Love at first bite” whereas a chocolate will slowly melt in mouth and people will feel instant,
extreme and ultimately long lasting attraction for a chocolate cake.
7.7. ADMINISTRATION BUDGET

ITEMS FIXED ASSETS MONTHLY OTHER

(RM) EXPENSES EXPENSES
(RM) (RM)
Land and Building 250,000
Furniture and Fittings 940
Salary, EPF & SOCSO 7100
Office Supplies 1260
Telephone Bill 50
Internet 80
Business Registration 30
Business License/Permit 230

TOTAL 252,200 7230 260

FINANCIAL PLAN
8.0. FINANCIAL INPUTS

             

NAME OF BUSINESS/COMPANY GOCHOC

   
             
  BUSINESS ENTITY 2        

  1 = Private Limited Company          

  2 = Partnership          

  3 = Sole Proprietorship          
             

  TYPE OF BUSINESS 1        
  1 = Manufacturing          
  2 = Trading          
  3 = Service          
             

8.1. MARKETING BUDGET

Particulars F.Assets Monthly Others Total

         

Fixed Assets*        

        -

Working Capital      

Business Card 12   12

Labelling   100   100

Brochure   150   150

Banner 80     -

        -

Total 80 262 - 262

Sales & Purchases Budgets

Sales Purchases
Month
(RM) (RM)

2 5,800 3,141

3 10,681 3,141
4 10,681 3,141

5 10,681 3,141
 6 11,181 3,141

7 14,181 3,141

8 10,681 3,141

9 10,681 3,141

10 13,181 3,141
11 19,015 3,141

12 19,014 3,141

1 19,023 3,141

Total Year 1 154,800 37,693

Total Year 2 159,444 38,824

Total Year 3 169,011 41,154

Increment Year 2 (%) 3% 3%

Increment Year 3 (%) 6% 6%

Sales Collections (%)    

Current month 80%

1 month after sales 20%

2 months after sales 0%

Total 100%

Payments to Suppliers (%)    

Current month 80%

1 month after purchase 20%

2 months after purchase  

Total 100%

8.2. OPERATION BUDGET

Particulars F.Assets Monthly Others Total

         
Fixed Assets*        

Machine 1,410     1,410

Working Capital        

Purchase of Materials   3,141   3,141

Overhead   1,510   1,510

Packaging   691   691

Other Requirements        
 Other Expenses     200 200

Total 1,410 5,342 200 6,952

Year 1 Year 2 Year 3

Value of Stocks      

Raw materials 37,693 38,824 41,154

Finished goods 154,800 159,444 169,011

Tax Rate (Private Ltd Co.) 20% 20% 20%

Increase in working capital 5% 5%

8.3. ADMINISTRATION BUDGET

Particulars F.Assets Monthly Others Total

         

Fixed Assets*        

Land & Building       -

Furniture & Fitting 2,200     2,200

Working Capital        

Salaries,EPF,SOCSO   7,100   7,100

Internet   80   80

Telephone Bill   50   50

Other Requirements        

Registration & Licences     260 260

Total 2,200 7,230 260 9,690

* useful life of fixed assets years

Land & Building nil

Furniture & Fitting 5

Machine and Equipment 5

Depreciation method 1
8.4. PROJECT IMPLEMENTATION COST AND SOURCES OF FINANCE

PROJECT IMPLEMENTATION COST & SOURCES OF FINANCE

Project Implementation Cost Suggested Sources of Financing

Requirements   Cost Loan Hire-Purchase Own Contribution

Existing
Fixed Assets         Cash Assets

Land & Building   -   -    

Furniture & Fitting   2,200   - 940 -

  - - - - -

  - - - - -

  - - - - -

0  -   -   -

0  -       -

Machine and 1,
Equipment   1,410     410 -

0  - - - - -

  - - - - -

- - - - -

Working Capital 12,

months 1 12,834   - 834

Other Expenses 460   - 460

1,
Contingencies 10% 1,690   - 564

             

TOTAL   - -
 17,208 17,208 -

Interest Interest on

on Loan Hire-Purchase

3% 4%

Loan duration H.P. duration

(years) (years)

15 9

* Method: 1 = flat rate Method*

2 = annual rest 2
8.5. DEPRECIATION OF FIXED ASSETS

Name of Assets Furniture & Fitting

Cost (RM) 2,200  

Method of Depr. Straight Line  

Duration (years) 5  

Annual Accumulated

Year Depreciation Depreciation Book Value

0 - - 2,200

1 440 440 1,760

2 440 880 1,320

3 440 1,320 880

4 440 1,760 440

5 440 2,200 -

6 0 0 -

7 0 0 -

8 0 0 -

9 0 0 -

10 0 0 -

Name of Assets Machine and Equipment

Cost (RM) 1,410  

Method of Depr. Straight Line  

Duration (years) 5  

Annual Accumulated

Year Depreciation Depreciation Book Value

0 - - 1,410

1 282 282 1,128

2 282 564 846

3 282 846 564

4 282 1,128 282

5 282 1,410 -
6 0 0 -

7 0 0 -

8 0 0 -

9 0 0 -

10 0 0 -
8.6. PROFORMA CASH FLOW STATEMENT

GOCHOC

PRO FORMA CASH FLOW STATEMENT

MONTH 1 2 3 4 5 6 7 8 9 10 11 12 TOTAL YEAR 2 YEAR 3

                               

CASH INFLOWS                              

Owners' Capital (cash) 17,208 - - - - - - - - - - - 17,208 - -

Bank Loan - - - - - - - - - - - - - - -

Cash Sales 4,640 8,545 8,545 8,545 8,945 11,345 8,545 8,545 10,545 15,212 15,211 15,218 123,840 127,555 135,209

Collection of Accounts
Receivable - 1,160 2,136 2,136 2,136 2,236 2,836 2,136 2,136 2,636 3,803 3,803 27,155 33,036 33,643

TOTAL CASH INFLOWS

21,848 9,705 10,681 10,681 11,081 13,581 11,381 10,681 12,681 17,848 19,014 19,021 168,203 160,591 168,851

                             

CASH PAYMENTS                            

Administrative Expenses                            

Salaries,EPF,SOCSO 7,100 7,100 7,100 7,100 7,100 7,100 7,100 7,100 7,100 7,100 7,100 7,100 85,200 89,460 93,933

0- - - - - - - - - - - - - - -

Internet
 80 80 80 80 80 80 80 80 80 80 80 80 960 1,008 1,058

Telephone Bill 50 50 50 50 50 50 50 50 50 50 50 50 600 630 662

- - - - - - - - - - - - - - -

- - - - - - - - - - - - - - -

- - - - - - - - - - - - - - -

Marketing Expenses                        

Business Card 12 12 12 12 12 12 12 12 12 12 12 12 144 151 159

Labelling 100 100 100 100 100 100 100 100 100 100 100 100 1,200 1,260 1,323

Brochure 150 150 150 150 150 150 150 150 150 150 150 150 1,800 1,890 1,985

Banner - - - - - - - - - - - - - - -

0- - - - - - - - - - - - - - -

Operations Expenses                        

Cash Purchases 2,513 2,513 2,513 2,513 2,513 2,513 2,513 2,513 2,513 2,513 2,513 2,513 30,155 31,059 32,923

Payment of Accounts
Payable - 628 628 628 628 628 628 628 628 628 628 628 6,910 7,539 7,765

Carriage Inwards & Duties - - - - - - - - - - - - - - -

Salaries, EPF & SOCSO - - - - - - - - - - - - - - -

Overhead 1,510 1,510 1,510 1,510 1,510 1,510 1,510 1,510 1,510 1,510 1,510 1,510 18,120 19,026 19,977

Packaging 691 691 691 691 691 691 691 691 691 691 691 691 8,294 8,709 9,145

- - - - - - - - - - - - - - - -

Deposit - - - - - - - - - - - - - - -

Registration & Licences 260 - - - - - - - - - - - 260 - -

Insurance & Road Tax - - - - - - - - - - - - - - -

Other Expenses 200 - - - - - - - - - - - 200 200 200

Purchase of Fixed Assets

- Land & Building - - - - - - - - - - - - - - -

Purchase of Fixed Assets

- Others 2,350 - - - - - - - - - - - 2,350 - -

Hire-Purchase Down
Payment - - - - - - - - - - - - - - -

Hire-Purchase
Repayments                            

Principal - - - - - - - - - - - - - - -

Interest - - - - - - - - - - - - - - -
Loan Repayments                              

Principal - - - - - - - - - - - - - - -

Interest - - - - - - - - - - - - - - -

Tax - - - - - - - - - - - - - 0 0

TOTAL CASH
OUTFLOWS 15,016 12,834 12,834 12,834 12,834 12,834 12,834 12,834 12,834 12,834 12,834 12,834 156,194 160,932 169,129

EXCESS/(DEFICIT)
6,832 (3,130) (2,153) (2,153) (1,753) 747 (1,453) (2,153) (153) 5,014 6,180 6,187 12,010 (341) (278)

OPENING BALANCE
- 6,832 3,702 1,549 (604) (2,358) (1,611) (3,064) (5,218) (5,371) (357) 5,823 - 12,010 11,669

ENDING BALANCE
6,832 3,702 1,549 (604) (2,358) (1,611) (3,064) (5,218) (5,371) (357) 5,823 12,010 12,010 11,669 11,391
8.7. INCOME STATEMENT

GOCHOC

MANUFACTURING COST

         Year 1 Year 2 Year 3

              

  Materials      

    Opening Stock 0 37,693 38,824

    Current Year Purchases 37,693 38,824 41,154

    Closing Stock 37,693 38,824 41,154

    Materials Used (0) 37,694 38,823

    Carriage Inwards & Duties - - -

   (0) 37,694 38,823

  Salaries, EPF & SOCSO - - -

  Factory Overhead      

Depreciation on Fixed Assets

    (Operation) 282 282 282

    Overhead 18,120 19,026 19,977

    Packaging 8,294 8,709 9,145

   - - - -

    Total Factory Overhead 26,696 28,017 29,404

  Cost of Goods Manufactured 26,696 65,711 68,227

8.8 PRO FORMA INCOME STATEMENT

GOCHOC

PRO FORMA INCOME STATEMENT

         Year 1 Year 2 Year 3

  Sales 154,800 159,444 169,011

  Less: Cost of Goods Sold      

Openig Stock - Finished

-
  Goods 154,800 159,444

  Cost of Goods Manufactured 26,696 65,711 68,227

less: Closing Stock - Finished

154,800 159,444 169,011
  Goods

  0 0 0

         (128,104) 61,067 58,660

  Gross Profit 282,904 98,377 110,350

        

  Less: Expenses      

  Administrative Expenses 86,760 91,098 95,653

  Marketing Expenses 3,144 3,301 3,466

  Registration & Licences 260 - -

  Insurance & Road Tax - - -

  Other Expenses 200 200 200

  Interest on Hire-Purchase - - -

  Interest on Loan - - -

  Depreciation on Fixed Assets 440 440 440

  Total Expenses 90,804 95,039 99,759

  Net Profit Before Tax 192,100 3,338 10,591

  Tax 20%     0 0 0

  Net Profit After Tax 192,100 3,338 10,591

  Accumulated Net Profit 192,100 195,437 206,029

8.9. PRO FORMA BALANCE SHEETS

GOCHOC

PRO FORMA BALANCE SHEET

       Year 1 Year 2 Year 3

  ASSETS         

           

  FIXED ASSETS (Book Value)       

  Land & Building - - -

  Furniture & Fitting 1,760 1,320 880

  - - -

  - - -

  - - -

 0   - - -

 0   - - -

  Machine and Equipment 1,128 846 564

 0 - - -

  - - -

    - - -

       2,888 2,166 1,444

  CURRENT ASSETS       

  Deposit - - -

  Stok - Raw Materials 37,693 38,824 41,154

  Stok - Finished Goods 154,800 159,444 169,011

  Accounts Receivable 3,805 2,657 2,817

  Cash 12,010 11,669 11,391

       208,308 212,594 224,373

           

  TOTAL ASSETS 211,196 214,760 225,817

           
  OWNERS' EQUITY       

  Capital   17,208 17,208 17,208

  Accumulated Net Profit   192,100 195,437 206,029

       209,308 212,645 223,237

  LIABILITIES         

  Loan Balance   - - -

  Hire-Purchase Balance   - - -

  Accounts Payable   628 854 1,320

  Tax Payable   0 0 0

       628 854 1,320

           

TOTAL OWNER' EQUITY &

  209,936 213,500 224,557
LIABILITIES
8.10. GRAPH

8.10.1 FINANCIAL RATIOS

I. Current Ratio

Current ratio shows the ability of GoChoc to meet its short-term obligation from year 1 to
year 3. The first year is 331.58, the second year is 248.83 and the third year is 169.94.

II. Quick Ratio

Quick ratio is an indicator of GoChoc’s short-term liquidity position and measures GoChoc’s
company ability to meet its hort-term obligations with its most liquid assets. The first year
amount is 25.17,the second year is 16.77 and the third year is 10.76.
III. Return on Sales

Return on sales is a ratio used to evaluate GoChoc’s operational efficiency from year 1 until
year 3. The first year of GoChoc ROS is 124%, the second year is 2% and the third year is
6%.

IV. Return on Equity

Return on equity is a measure of the profitability of GoChoc’s in relation to the equity from
year 1 until year 3. The first year of GoChoc’s ROE is 92%, the second year is 2% and the
third year is 5 %.
V. Return on Investment

Return on investment is ratio between net profit and cost investment from year 1until year 3.
The first year of GoChoc’s ROI is 91%, the second year is 2% and the third year is 5%

VI. Debt to Equity

Debt to equity is a financial ratio indicating the relative proportion of stakeholder’s equity an
debt used to finance GoChoc’s assets from year 1 until year 3. The first until third year of
GoChoc’s (D/E) is 0.
8.11. FORECASTED PERFORMANCE

GOCHOC

FORECASTED PERFORMANCE

Particulars Year 1 Year 2 Year 3

PROFITABILITY      

  Sales 154,800 159,444 169,011

  Gross Income 282,904 98,377 110,350

  Net Income Before Tax 192,100 3,338 10,591

  Net Income After Tax 192,100 3,338 10,591

  Accumulated Net Income 192,100 195,437 206,029

        

LIQUIDITY      

  Total Cash Receipts 168,203 160,591 168,851

  Total Cash Payments 156,194 160,932 169,129

  Excess (Deficit) 12,010 (341) (278)

  Accumulated Cash 12,010 11,669 11,391

        

SAFETY      

  Owners' Equity 209,308 212,645 223,237

  Fixed Assets 2,888 2,166 1,444

  Current Assets 208,308 212,594 224,373

  Long Term Liabilities - - -

  Current Liabilities 628 854 1,320

        

FINANCIAL RATIOS      

  Profitability      

  Return on sales 124% 2% 6%

  Return on Equity 92% 2% 5%

  Return on Investment 91% 2% 5%

  Liquidity      

  Current Ratio 331.58 248.83 169.94

  Quick Ratio (Acid Test) 25.17 16.77 10.76

        

Safety      

  Debt to Equity 0.00 0.00 0.01

        

BREAK-EVEN ANALYSIS      

  Break-Even Point (Sales) 117,500 209,324 216,603

  Break-Even Point (%) 76% 131% 128%

        
9.0. REFERENCES

- http://www.commonlii.org/my/legis/consol_act/pa19611974229/

- https://eshop.tesco.com.my/groceries/en-GB/?gclid=CjwKCAiA58fvBRAzEiwAQW-
hzTNXbEm70Jtnoa3nziYSiCmA6FKM7cr9dmxivUO9Jl8l4Da5onjmXBoCbKwQAvD_Bw
E

- https://www.investopedia.com/terms/q/quickratio.asp

- https://www.thebalancecareers.com/understanding-the-role-and-scope-of-the-general-
manager-2276095
10.0. APPENDIX