Final Report Ent 300

PT 4763 PerindustrianChendering,
21080 Kuala Terengganu,

Terengganu DarulIman.
ENT 300
CLASSY COCOA
“THE AUTHENTIC TASTE OF
COCOA”
BUSINESS PLAN
NAME MATRICES NO
MUHAMMAD ISMAIL BIN ABDUL RAHMAN 2012208384
ADI FARHAN BIN HAMZAH 2012698968
MUHAMMAD ZARIQ BIN ZULKIFLI 2012403286
MOHAMAD ANWARUDDIN SHAKRI BIN
2012238596
JAMIL
NURUL FATIHAH BINTI MOHAMAD 2012697934
PREPARED FOR:
SIR MOHD HUSNIN BIN MAT YUSOF
1
The Authentic Taste of Cocoa
ACKNOWLEDGEMENT
In the name of Allah S.W.T, the most gracious, the most merciful praise be to Allah
S.W.T, Lord of the Universe, who gives the blessing and strength to complete this project
paper for our group assignment. Peace and prayers be upon His final prophet and messenger
Muhammad S.A.W, the ideal role model for all mankind.
First of all, we would like to express our utmost gratitude towards our Fundamental of
Entrepreneurship (ENT 300), En. Mohd Husnin Bin Mat Yusof for his advice and
recommendations given in order for us to complete this assignment. We shall cherish all of
the effort and concern that he has given us for the completion of this project paper. It was an
interesting journey while completing this project paper as we learned that it really tests our
mental as well as our physical ability.
We would also like to extend our deepest appreciation and special thanks to all who have
directly and indirectly involved in guiding us in writing this project paper. Greatest
appreciations as well dedicated to our beloved parents, families and friends for their
continuous supports and encouragement given. Not to mention sources from Internet which
give us input and information, which have greatly assisted us towards completing this
project . Thank you.
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EXECUTIVE
SUMMARY
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Executive Summary
Classy Cocoa offers beverage product based on cocoa. As we know that Malaysian people
likes to bake a chocolate cake. We are providing a product named “Classy Cocoa” which is
suitable for all level of age.
We make this product because we want all Malaysian to feel the taste for the cocoa that we
produced. Our product also can make our body healthier and demand from east peninsular
Malaysia is high. We also believe that this product can make our company to get lot of profit.
Before we want to make this product, we have studied about our competitors which are
Cocoahouse Industries Sdn Bhd, Cacao Paramount Sdn Bhd and F Ladies Cafe. The purpose
we studied about our competitors is to make a product that different with the competitor.
Absolutely our product is different with our competitors because our product is cheaper than
the competitors’ product. It does not mean that our product is cheaper because our quality of
the materials is low. We are using the quality materials for example; we are using 100%
Grade A cocoa bean imported from Kota Samarahan.
Classy Cocoa marketing strategy is to provide a bigger profit and stay operating for long term
time. To stay operating for long term time, we must to work base on our mission which is
committed to keep the originality of cocoa from Malaysian people and maintain our quality
of our product that produce in the market.
We also implement the 4P’s marketing strategy that is Product, Place, Price and Promotion.
For marketing strategy of the product, we are using the advantage of our product to attract the
people or consumer out there to buy the product. In aspect of place, we distribute our product
to the east peninsular of Malaysia which is in Kuala Terengganu. Next, for price marketing
strategy, we put the affordable price to our customer to make sure that all of our customer can
have the product at any time. Lastly, promotion, we are using the technique of sales
promotion, advertising and publicity.
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The management of Classy Cocoa consist of General Manager (Muhammad Ismail Bin Abdul
Rahman), Administration Manager (Nurul Fatihah Binti Mohamad), Marketing Manager (Adi
Farhan Bin Hamzah), Operational Manager (Mohamad Anwaruddin Shakri Bin Jamil) and
Financial Manager (Muhammad Zariq Bin Zulkifli).
Based on the size of our market and our defined market area, our sales projections for the first
year are RM 720,000. The salary for the General Manager is RM 3,000 follow by
Administration Manager, Marketing Manager, operational manager and Finance Manager
which is RM 2,500.
Based on the taste of our product that we give to the chef, 8 out of 10 chefs love the taste of
our cocoa while 2 of the chef did not like the cocoa maybe because they feels that the taste
will not suit to all chocolate cake. We believe all Malaysian can accept our product and we
hope that our company can stay in long term time.
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TABLE OF CONTENTS
CONTENTS PAGES
1.0 Business Plan 2
1.1 Introduction to Business 2
1.2 Purpose of Preparing Business Plan 3
1.3 Business Background 4-6
1.4 Partnership Background 7-12
1.5 Location of Business 13-14
2.0 Administration Plan 16
2.1 Introduction to Administration Plan 16
2.2 Vision, Mission and Objectives 17
2.3 Organizational Chart 18
2.4 Manpower Planning 19
2.5 Schedule of Remuneration 20
2.6 Office Furniture, Fittings and Office Supplies 21
2.7 Administration Budget 22
3.0 Marketing Plan 23
3.1 Marketing Objectives 24
3.2 Descriptions of Product 25
3.3 Target Market 26
3.4 Market Size 27
3.5 Competitors 28
3.6 Market Share 29-31
3.7 Sales Forecast 32-33
3.8 Marketing Strategies 34-38
3.9 Marketing Personnel 39-40
3.10 Schedules of Remuneration 40
3.11 Marketing Budget 41
4.0 Operations Plan 42
4.1 Introduction to Operations Plan 43
4.2 Operations Objectives 43
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4.3 Operation Process 44-50

4.4 Material Planning 51-52
4.5 List of Machines and Equipment 53-54
4.6 Organizational Chart 54-55
4.7 List of Operation Personnel 56-57
4.8 Overhead Requirement 58-59
4.9 Location Plan 60
4.10 Business and Operation Hours 61
4.11 Operations Budget 62
5.0 Financial Plan 63
5.1 Introduction to Finance 64
5.2 Finance Objectives 64
5.3 Process of Financial Plan 64
5.4 Financial Inputs 65-67
5.5 Project Implementation Cost 68
5.6 Sources of Finance 69-70
5.7 Depreciation Schedules 71-72
5.8 Loan & Hire Purchase Amortisation Schedules 73-74
5.9 Pro-forma Cash Flow Statement 75-76
5.10 Pro-forma Income Statement 77
5.11 Pro-forma Balance Sheet 78
5.12 Financial Performance 79-87
6.0 Conclusion
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BUSINESS PLAN
1.0 Business Plan

1.1 Introduction to Business
1.1.1 Name of the company
8
The name of this company is Classy Cocoa. This name was chosen because of family
heritage and our product contain a special ingredient include quality and 100% cocoa seeds.
1.1.2 Nature of business
We sell product of cocoa powder. This product is different with other product available in the
market nowadays because our product’s recipes are from heirs.
1.1.3 Industry Profile
Classy Cocoa is the company that in food &beverages industries. We are focussing to supply
ourcocoapowder to other café, bakery store, retail store and wholesaler in Kuala Terengganu.
This product also gives a lot of benefit to health such as improve energy level and lowering
blood pressure. According to research,any group of ages can buy this product.
1.1.4 Location of the business
pt 4763 PerindustrianChendering, 21080 Kuala Terengganu, Terengganu
1.1.5 Date of business commencement
Classy Cocoa registered on 10th November 2015 and launch date of our companyon
21th December 2015.
1.1.6 Factor in selecting the proposed business
We choose to sell this product because the product has a lot of benefits to health. The demand
of this product in east peninsular Malaysia is high. This productalso can give a lot of profit.
1.1.7 Future prospect of the business
In achieving our goals, we set our target profit and performance of employee tomake sure this
company can maintain longer or long term period in the market.
1.2 Purpose of preparing the business plan
a) To evaluate the project viability and growth potential
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 The information and the analysis that is done in the business plan can give anearly
indication as to the viability of a project.
 The entrepreneur can make a better judgement before investing in the purposed
venture.
b) To act as a guideline for the management of the proposed business
 The entrepreneur has thought out and laid down the plans and strategies for running
the ventures in the business plan.
 When the ventures become reality, the plans and strategies outlined in the business
plan will be an important benchmark to help the entrepreneur gauge his process.
c) To allocate business resources effectively
 Small business has limited resources at their disposal.

 Resources need to be allocated effectively to avoid unnecessary wastageand to ensure
optimum returns on investment.
 Business plan can help with planning, distribution and monitoring of these resources.
d) To apply a loan from SME Bank
 As our starting budget to introduce our business

 More financial freedom to develop our business
1.3 Business Background
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Name of the Business CLASSY COCOA
Business Address PT 4763 Perindustrian Chendering, 21080

Kuala Terengganu.
Correspondence Address (E-mail) [email protected]
Website classycocoa.blogspot@gmail
Telephone Number 06-7318773
Fax Number 06-7208387
Form of Business Partnership
Main Activity Produces and distribute cocoa
Date of Commencement 21 December 2015
Date of Registration 11 November 2015
Registration Number (146080-X)
Name of Bank MAYBANK
Bank Account Number 27110964567661
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1.4 Vision, Mission and Objectives
1.4.1 Vision
 To be a well-known manufacturer in providing the best quality of cocoa powder

around Peninsular of Malaysia.
1.4.2 Mission
 To be the most progressive, efficient, profitable and respectable organization.
 Striving for excellence in total quality and customer satisfaction through continual
improvement in productivity, innovation and fulfilling social and environmental
responsibilities.
1.4.3 Objectives
i. SHORT TERM GOALS (1 YEAR AND BELOW)
 To bring satisfaction to our customers in Kuala Terengganu and gain high sales
regardless to the economy’s condition.
ii. INTERMEDIATE TERM GOALS (1 YEAR TO 4 YEARS)

 To maintain our profit and open up some new business around Terengganu within
4 years.
iii. LONG TERM GOALS (10 YEARS AND ABOVE)
 Expend our business to nearest foreigncountries such as Thailand and Indonesia

within 10 years.
 To be known as the biggest cocoa powder supply in local and foreign market.
1.4.4 Motto
 ‘The Authentic Taste of Cocoa’
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1.5 Organizational Chart
GENERAL MANAGER
MUHAMMAD ISMAIL BIN ABDUL

RAHMAN
MARKETING MANAGER
ADI FARHAN BIN HAMZAH ADMINISTRATION MANAGER
NURUL FATIHAH BINTI

MOHAMAD
FINANCIAL MANAGER
MUHAMMAD ZARIQ BIN

ZULKIFLI
OPERATIONAL MANAGER
MOHAMAD ANWARUDDIN
SHAKRI BIN JAMIL
13
1.6 Logo and Motto
1.6.1 Logo
 The word ‘Classy’ represent that our tradition from the generation to generation that
cannot be forgotten.
 The word ‘Cocoa’ represent that to maintain the name of the originality where the
chocolate come from.
 The ‘Cocoa Beans’ represents the high quality of the cocoa beans which is grade A.
 The chocolate colour represents the quality of our cocoa which is the best among our
competitors.
 ‘The Authentic Taste of Cocoa’ represents our motto
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1.7 PARTNERSHIP BACKGROUND
Equity Contributions:
PARTNERS CONTRIBUTIONS
FIXED CASH
%
ASSETS (RM)
MUHAMMAD ISMAIL BIN
ABDUL RAHMAN 20 % 20,503.20
(GENERAL MANAGER)
NURUL FATIHAH BINTI
MOHAMAD
20 % 20,503.20
(ADMINISTRATION
MANAGER)
ADI FARHAN BIN HAMZAH
20 % 20,503.20
(MARKETING MANAGER)
MOHAMAD ANWARUDDIN
SHAKRI BIN JAMIL 20 % 20,503.20
(OPERATION MANAGER)
MUHAMMAD ZARIQ BIN
ZULKIFLI 20 % 20,503.20
(FINANCE MANAGER)
TOTAL CONTRIBUTIONS 100 % 102,516
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1.8 Background of partners
1.8.1 General Manager
Name of the partner : Muhammad Ismail Bin Abdul Rahman
Identity Card Numbers : 900218-14-6353
Permanent Address : No A-7-17 RumahPangsaKampung

KayuAra PJU 6 Bandar Utama
47400 Petaling Jaya Selangor
Correspondence Address : No A-7-17 RumahPangsaKampung

KayuAra PJU 6 Bandar Utama
47400 Petaling Jaya Selangor
E- Mail : [email protected]
Telephone Number/Fax Number : 017-2350062
Date of Birth : 18.02.1986
Age : 29
Marital Status : Single
Academic Qualification : Master in Economies
Course Attended : ‘How to be a Successful Manager’
Skills : Leadership and teamwork
Experiences : 5 years
Present Occupation : General Manager at Under Armour
Previous Business Experience : Marketing Manager at Nestle
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1.8.2 Administration Manager
Name of the partner : NurulFatihahbintiMohamad
Permanent Address : PT 7056 Taman Fikri 2, Fasa 5,

24000 Kemaman, Terengganu
Correspondence Address : PT 7056 Taman Fikri 2, Fasa 5,

24000 Kemaman, Terengganu
Age : 25
Academic Qualification : Bachelor Degree in International

Business Management
Course Attended : None
Skills : Good in scheduling office documents

and distributions
Present Occupation : Administration Manager at Titisan

Ikhsan
Previous Business Experience : Administration Manager at Fitness First
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1.8.3 Marketing Manager
Name of the partner : AdiFarhan Bin Hamzah
Permanent Addres : No, 40 Jalan 2/18 Bandar Baru

Selayang 68100 Batu Caves Selangor
DarulEhsan
Correspondence Address : No, 40Jalan 2/18 Bandar Baru

Selayang 68100 Batu Caves
Selangor DarulEhsan
Age : 25
Marital Status : Married
Academic Qualification : Bachelor in Business Administration
(Hons.) Marketing
Course Attended : “Future Marketer” by Dr Azizan Osman
Skills : Good in Communications
Experiences : 2 and half years
Present Occupation : Marketing Manager of Zurich Insurance
Previous Business Experience : Marketing Manager of IT ONE
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1.8.4 Operation Manager
Name of the partner : MohamadAnwaruddinShakri Bin Jamil
Permanent Address : 108C KampungPusuTiga,

21400 Marang Terengganu
Correspondence Address : 108C KampungPusuTiga,

21400 Marang Terengganu
Marital Status : Married
Academic Qualification : Bachelor inBusiness Administration
(Hons.)Operations Management
Skills : Hardworking and confidence
Present Occupation : Operational Manager at Secret Recipe
Previous Business Experience : Administration Manager at Ziq Bakery
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1.8.5 Financial Manager
Name of the partner : Muhammad Zariq Bin Zulkifli
Permanent Address : No. 2 LorongEnggang 25, Tmn.

Keramat, 54200 Kuala Lumpur
Correspondence Address : No. 2 LorongEnggang 25, Tmn.

Keramat, 54200 Kuala Lumpur
Date of Birth : 8 October 1989
Age : 26 years
Academic Qualification : Bachelor in Business Administration

(Hons.) Finance
Skills : Competent and industrious
Present Occupation : Finance Manager at Maybank
Previous Business Experience : Assistant Finance Manager at
Tropicana Corp.
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1.9. Location of Business
1.9.1. Physical location of the project
Our locations is at PT 4763 PerindustrianChendering, 21080 Kuala Terengganu,

Terengganu, Malaysia
Map
Building
This is an office factory building which are consist of our office and the factory in one
building so that it will be easy for us to monitor our product and at the same time doing the
office job about the product promotion. The general manager and other manager can easier
control a daily operation at the office and factory. Its size is (850.2 x 360.65) square feet.
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1.9.2 Basic amenities
a) Water
Our sources of water Classy Cocoa is provided by
Syarikat Air Terengganu SdnBhd
b) Electricity
Our electrical sources in Classy Cocoa is provided by
TenagaNasionalBerhad (TNB)
c) Telephone and Internet
Our telephone line and internet are provided by Telekom Malaysia.
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ADMINISTRATION
PLAN
23
2.0 Administration Plan
2.1 Introduction to Administration Plan
Administration plan is important when we want to make the company run smoothly.
As we know that, every department must to do the job according to the department needed.
The benefits of administration plan are, to improve, control, ensure and take care of
the performance of the company and the workers. Administrative plan can improve the
company via the comfort to the worker such as give the worker facilities such as a
comfortable chairs and perfect stationeries.
Next, administration plan can control the company and workers become smooth and
comfortable. For example is, enough wardrobes to put the products, files and document.
These things must to be sort by the perfect layout to prevent untidy in the office.
Last but not least, the administration must to ensure the worker welfare with give the
worker EPF and SOCSO. It will give the worker remuneration because work at the company.
It will make the company work harder to the company
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2.2 Organizational Chart of Administration Department
BOARD OF DIRECTOR
GENERAL MANAGER
MUHAMMAD ISMAIL
ADMINISTRATION MARKETING MANAGER OPERATION MANAGER FINANCIAL MANAGER

MANAGER
ADI FARHAN ANWARUDDIN SHAKRI

NURUL FATIHAH MUHAMMAD ZARIQ
Clerk
Office Boy
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2.3 Manpower Planning
2.3.1 List of Personnel
Position No of Personnel
CEO 1
Financial Manager 1
Administrative Manager 1
Clerk 1
Office boy 1
Table 1.1 Lists of Personnel
2.3.2 Schedule of Task and Responsibilities.
Position Task and Responsibilities

CEO Responsible to ensure the performance of all
department to get and achieve goals.
Financial Manager Manage all of the financial issues in the
company and make sure all transaction were
recorded to prevent loss and froud.
Administrative Manager Supports operations by monitor the staff;
marketing and operation department.
Clerk Control and monitor the machinery used to
make the (products) . Measuring, weighting,
mixing and loading raw materials into the
machines, closing down and cleaning the
machinery. Carriying out minor maintenance
work. Packing and loading the finished items
into container for shipment.
Office boy Sent mail to other company, check the stock
and help administrative manager.
Table 1.2 Task and Responsibilities
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2.4 Schedule of Remuneration
Position Quantity Monthly EPF (RM) SOCSO Total

Salary (12%) (RM)
(RM) 2%)
CEO 1 3000 360 60 3420
Financial Manager 1 2500 300 50 2850
Administrative 1 2500 300 50 2850

Manager
Clerk 1 900 108 18 1026
Office Boy 1 900 108 18 1026
TOTAL 11,172
Table 1.3 schedule of Remuneration
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2.5 Office Furniture, Fitting and Office Supplies
Type Quantity Price/Unit (RM) Total (RM)

Table 2 400 800
Wardrobe 2 500 1000
Chairs 2 300 600
Computer 2 1500 3000
Printer (HP) 2 188 376
Fax machine 1 369 369
(Panasonic)
Book shelves 2 200 400
Air-conditioner 1 700 700
(Haier)
TOTAL 7245
Table 1.4.1 List of office Furniture and Fittings
Type Quantity Price/Unit (RM) Total (RM)

A4 paper 50 8 400
Stationary 20 5 200
File 25 4 100
TOTAL 700
Table 1.4.2 List of Office supplies
28
2.6 Administration Budget
Item Fixed Monthly Other Expenses Total

Assets Expenses (RM) (RM)
(RM) (RM)
Fixed Assets
Furniture and 7,245

Fitting
Monthly Expenses
Salary
(EPF/SOCSO) 11,172
Office Supplies 700

Other Expenses
Business
Registration 60
TOTAL 7,245 11, 872 60 19,177
Table 1.5 Administration Budget
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MARKETING
PLAN
30
3.0 MARKETING PLAN
3.1 Marketing Objectives
(i) New business
The product which is cocoa powder is new to the market in area of Kuala Terengganu since
there is still no cocoa’s manufacturer that produces cocoa powder. Our product contains
100% pure dried cocoa beans from Kota Samarahan, Sarawak.
(ii) Existing business
Our company will try the best to compete with other competitors outside the area of Kuala
Terengganu to be a well-known product in Malaysia. In achieving our company goals, we
like to make a high profit, stay operating for long term. We hope that our product can be
accepted by the consumers and also for the small-medium enterprises that operating their
business using cocoa powder.
3.1.2 Business location
For our manufacturer for this product would be located at PT 4763

PerindustrianChendering, 21080 Kuala Terengganu. We choose this business location as it
located between the urban are and sub-urban area. This will ease our delivery man to
distribute our product to the target market.
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3.2 Description of products
Product Description
Features The cocoa with good delicious taste.
Materials Cocoa Bean
Benefits The cocoa can give a lot of benefits such as it can
boost our endorphins and provide antidepressant
benefits. It also has highly nutritious.
Table 1.6 Product Descriptions
Table 6.2.2 Product Illustration
3.3 Target market
Geographic segmentation
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For our product, we had chosen to supply in Kuala Terengganu. We choose this area
because Kuala Terengganu has potential to develop our very own product name. This product
will be supplied to 4 cafés and bakery shops, 2 retail shop and 2 wholesalers. We believe by
continuously supplying our product in Kuala Terengganu, we surely can achieve higher
profit.
Volume purchase
The volume purchase will increase as the regular customers who take the cocoa
increase. The sales of cocoa depend on the demand from the customers. As the demand
increase, our company will be able to gain higher profit. Every month, we will deliver the
products to the 8 outlets with 2,400 units of cocoa for the cafés and bakery shops, 400 units
for the retail shop and 2,000 units for the wholesalers.
Demographic Segmentation
Classy Cocoa is suitable for any ages especially for those who love to make a
chocolate cake. Classy Cocoa is an economical productwith an appropriateprice and suitable
to use for home cook. The exquisite tastes of Classy Cocoa are very tempting and cause no
harm to the user. In fact, according to research cocoa can actually help user to produce more
endorphins which will make them feel happier. Another facts is cocoa could help the users in
lowering high blood pressure. Cocoa can also provide essential minerals such as calcium and
potassium.
Psychographic Segmentation
We are targeting the market with modern lifestyle but maintaining the original taste of
classic cocoa. Now, citizens in Kuala Terengganu can enjoy the taste of chocolate without
worrying about their health as our cocoa bean came from high quality bean and no
preservatives added.
Quality Evaluation of Distributor
33
The distributors are expert in distributing the products to all outlets in Kuala
Terengganu. With the high level of efficiency and effectiveness, the products could be sold to
the 8 outlets in Kuala Terengganu and it will result in a higher return to the company and it
can also generate income to the workers.
3.4 Market Size
Market size refers to the total potential purchase that is expected from the target market. Our
target markets are focusing in the area of Kuala Terengganu and try to approach the small-
medium enterprises that operates especially in the bakery field. The potential purchase
includes the purchases of the competitor’s product within the same market. The market size is
often stated in unit of sales or Ringgit for a specific period.
For the sales from the cafés and bakery shops we are expecting about RM 30,000 per month.
While from the retail store and wholesalers, the sales per month would be RM 5,000 and RM
25,000 respectively.
Type of outlet No. of outlet No. of items Price/unit Total per Total per year
needed (unit) (RM) month (RM) (RM)
Cafe and 4 2,400 12.50 30,000 360,000
Bakery Shop
Retail Store 2 400 12.50 5,000 60,000
Wholesaler 2 2,000 12.50 25,000 300,000
Total 8 4,800 60,000 720,000
Table 2.0Market size
Note: 1 unit  1 packet / 500g
1 box  100 packet cocoa
Thus, the total market size for our company is RM 60,000 per month and RM 720,000
per year.
3.5 Competitors
Competitors Strengths Weaknesses

COCOAHOUSE INDUSTRIES  Provide for  Poor customer services.
34
SDN. BHD. internationally

 Strong network& well
established
CACAO PARAMOUNT SDN.  Strong sales and  Communication
BHD. distribution network. problem
 Strong brand image.
F LADIES CAFE  High consistency level  High preservative
of cocoa
3.5.1 Ranking of the competitors
Rank No. Competitors

1 COCOAHOUSE INDUSTRIES SDN. BHD
2 CACAO PARAMOUNT SDN. BHD.
3 F LADIES CAFE
3.6 Market Share
Market share refers to the percentage of an industry or market's total sales that is earned by a
particular company over a specified time period. It is calculated by taking the company's
sales over the period and dividing it by the total sales of the industry over the same period.
35
This metric is used to give a general idea of the size of a company to its market and its
competitors.
From the table below we can see that COCOAHOUSE INDUSTRIES SDN. BHD holds 39%
of the market share. For the CACAO PARAMOUNT SDN, BHD and F LADIES CAFÉ are
33% and 28% respectively.
Companies Percentage Amount

(%) (RM)
COCOAHOUSE INDUSTRIES 39 2,808,000
SDN. BHD
CACAO PARAMOUNT SDN. 33 2,376,000
36
BHD.
F LADIES CAFE 28 2,016,000
TOTAL 100 7,200,000
Table 2.1 Market share before the entry of Classy Cocoa
Competitors market share before our entry
Market Share
27.78%
38.89%
COCOAHOUSE INDUSTRIES
SDN.BHD.
CACAO PARAMOUNT SDN.BHD.
F LADIES CAFÉ
33.33%
37
We are expecting we can gain about 10% of the market share. Therefore there will be
Companies Percentage Amount Percentage of loss

(%) (RM) (%)
COCOAHOUSE 35 2,520,000 4
INDUSTRIES SDN. BHD
CACAO PARAMOUNT 30 2,160,000 3
SDN. BHD.
F LADIES CAFE 25 1,800,000 3
CLASSY COCOA 10 720,000 -
TOTAL 100 7,200,000 10

Table 2.2 Market share after the entrance of our company
Competitors market share after the entrance of our company
38
Market Share
35.00%
10.00%
COCOAHOUSE INDUSTRIES
25.00% SDN.BHD.
CACAO PARAMOUNT SDN.BHD.
F LADIES CAFÉ
CLASSY COCOA
30.00%
39
3.7 Sales Forecast
Sales Forecasting
Month Sales Forecast for 2015 (RM)

January 33,750
February 37,500
March 42,500
April 48,750
May 52,500
June 60,000
July 80,000
August 75,000
September 62,500
October 67,500
November 80,000
December 80,000
TOTAL 720,000
Table 2.3 Sales Forecasting
January to June
From the Table 6.7 above, we didn’t expect too much profit between January to June as we
try to put a high marketing effort to attract and create awareness of our product to our
customers. This is the introductory stage to our market where we try to convince people to
buy our product
July
In this month, we predict our sales will increase because there will be fasting month and Hari
Raya Puasa for the Muslims to celebrate it. We expect that the consumption of cocoa powder
will increase because customers need cocoa powder to make cookies and cake.
September
40
In this month, we are predicting our sales decrease in high number because this is the end of
festive according to Malaysia calendar.
November
In November, there will be Deepavali festivals. And due to this we predict our sales increase
from RM 67,500 to RM 80,000
December
We predict that our sales will maintain in this month as there will be a Christmas festival. We
believe that there are a few chinese and indian that celebrate Christmas and the demand for
cocoa powder to consume for cooking, baking and drinking will increase.
Year Sales Collection per year (RM)

2015 720,000
2016 756,000
2017 793,800
TOTAL 2,269,800
Table 2.4 Sales forecasting for next two years
From table 6.7.1 above, we predict our sales to increase by 10% from 2015 until 2017 as we
try to put high marketing effort to promote our product and becoming a well-known brand
not only in Kuala Terengganu and Terengganu but also in every state of Malaysia.
3.7Marketing Strategies
3.7.1 PRODUCT
41
For our product which is ‘classy cocoa’ we give special attention to the following aspects:
Quality
We choose the best ingredients in making a good product for our customers. The cocoa bean
will be imported from Kota Samarahan, Sarawak that has high quality with grade ‘A’ type of
cocoa bean. It has a clean and strong taste of chocolate which can bring satisfaction to our
beloved customers. In order to keep the quality of the cocoa, we will immediately process the
cocoa bean before the real aroma of chocolate disappeared.
Design
Based on the criteria that we think can attract our customer especially our target market to
buy our product, we have come out with the modern design of packaging. People nowadays
have so many choices and want the best for themselves, so we decided to create our product
different from our competitors who can create benefit to us and our customers.
Packaging
We have decided to use plastics for our product packaging that is convenient to our
customers. The plastics that we use are high quality plastic that could prevent a harmful effect
for the users.
3.7.2 PRICE
42
The price for our product is affordable for all customers which is cheaper than other
competitor’s product. We are using the pricing method based on competition and because of
it we are trying our best to give the best price for our beloved customers. The price of the
cocoa is RM 12.50 for 500 gram which is reasonable with the great quality of cocoa bean to
buy.
Price for 1 kg cocoa powder before process and packaging = RM9.

Price for 500 gram cocoa powder before process and packaging = RM 4.5
Unit produced per day = 36 units
Process for each unit = 36/12.50
= RM 2.88 @ RM 3
Packaging cost = RM 1
Cost per unit = 4.5 + 3 + 1
= RM 8.5
Price = cost per unit + (mark up × cost per unit)
= 8.5 + (47% × 8.5)
= 12.49 @ RM 12.50
PRICING STRATEGIES
Discount pricing
Our customer will get discount if they buy our product in bulk.
3.7.3 PROMOTION
43
We are using a few promotion strategies to introduce and promote the specialty of our
product to target market:
Advertising
We will use some types of advertising, such as banner, business card, newspaper, flyers and
social network.
1. Banner
For our banner we will use 4 units and we will put our banner in public locations
that has been a place frequented by people. For example, Mydin Mall, PayaBunga
Square, near Sultan Mahmud bridges and Kuala Terengganu Bus Station to make
sure citizens of Kuala Terengganu are aware with our existence.
2. Business Card
For our business card we will give to our customer every time they purchased our
product.
3. Social Network
44
For social network we will promote our product through Facebook, Instagram,
and Twitter.
4. Flyers
For Flyers we will put our flyers to our Wholesaler, Bakery and café shop and
Retail store.
Sales promotion
Sample of cocoa bean will be made to introduce our product to the customers in the market
for the first month
45
3.8 Marketing Personnel
Board of Director
CEO
ADMINISTRATION FINANCIAL OPERATIONAL

MANAGER MANAGER MANAGER
MARKETING MANAGER
Assisstant Manager
Promoting Crew
Figure 6.9 Organization Chart for Marketing Department
Manpower Planning
Table 6.10 List of Marketing Personnel
Position No. of personnel

Assisstant Manager 1
Promoting Crew 2
Schedule of Task and Responsibilities

Marketing Manager To support and conduct the marketing workers
Promoting Crew To help in promoting the cocoa
3.9 Schedule of Remuneration
46
Position Monthly EPF (RM) SOCSO (RM) Total

Salary (RM) 12% 2%
MARKETING 2,500 300 50 2,260

PERSONNEL
ASSISSTANT 1,500 180 30 1,710

MANAGER
PROMOTING 1,200 144 24 1,368

CREW
PROMOTING 1,200 144 24 1,368

CREW
3.10 Marketing Budget
PARTICULAR FIXED MONTHLY OTHERS TOTAL
47
ASSET EXPENSES EXPENSES EXPENSES

EXPENSES
(RM) (RM) (RM) (RM)
Fixed asset:
Signboard
650 650
Working capital (Salary):
Salaries + EPF + SOCSO

6,706 6,706
Promotion Budget:
Flyers (500 units)

350
Business Card (500 units)

450
Social Networking & Internet Ads

-
Banner (4 units) 380
Grand Opening 1,400
Total 2,580
Total Expenses 9,936
48
OPERATION
PLAN
4.0 OPERATION PLAN
4.1 INTRODUCTION
49
In any business that we want to set up, an operation objective is important element
that should be add on in order to ensure that the business will be run smoothly and
accordingly. The successful of the business is depending on how the effective of the operation
in the business itself. The smoothly and a well condition of operation can lead the business
achieved the goal easily without face any difficulties that hinder the success of the business.
Therefore, the objective operation should be set up in order to serve as a guideline for the
business in achieving their goal.
4.2 OPERATION OBJECTIVES
• To make sure that all the operation activities will be run properly and effectively to
achieved the business goal.
• To ensure that all the products that provided to our customer follow the requirements
and needs in order to make them satisfy with our product.
• To make sure that our product can give satisfaction to the customer.
• To ensure all the workers can perform their job effectively.
• To maximize the sustainable profit growth and minimize the lost.
• To make our company grow faster in order to be more competitive in the business.
• To ensure the machine is functioning properly
• To be aware with new business opportunity that is based on our product
• To make sure the performance of our business operation will be successful.
4.3 OPERATION PROCESS
50
CLEANING: The seeds of cocoa cleaned upon arrival at the grinding mill. This cleanup aims
to remove waste material included with beans during primary or first processing or during
transport, such as stone, metal, glass, jute rope and so on.
PRE - HEATING: cocoa seeds are clean will undergo a pre- heating process to loosen the
adhesion between the nib and the seed coat. This process will facilitate the separation from
exile during the troubleshooting process and aeration.
RESOLUTION / Ventilation: The seeds of cocoa will be broken for separating the nib of the
seed coat. NIB is a valuable material derived from cocoa. Seed coat is less valuable by
products.
Roasting: NIB - cocoa nib will be baked in temperatures between 135 ° C and 145 ° C for 35
to 45 minutes. Roasting is intended to produce flavor and aroma of chocolate, get rid of
unwanted flavors such as acid, reducing the bitter taste of cocoa producing a darker color and
reduce the water content. Roasting also helps eliminate organisms that can cause food
poisoning such as Salmonella sop heat resistant.
Grinding: cocoa nib is ground so fine. The resulting product is called cocoa liquor which is
the basic ingredient in chocolate act Cocoa liquor contains 55 % cocoa butter.
EMPHASIS / extraction process or extraction emphasis is intended to produce cocoa butter

from cocoa liquor. The results obtained from this extraction process are the discharge of oil
known as cocoa butter. The remaining issued common by products is known as cocoa cake.
4.3.1 Symbol of process chart:
51
SYMBOL TYPE OF DESCRIPTION

ACTIVITY
Operation Activities that modify

transform or give values to
the input.
Activity that measures

Inspection Standard of the in-process
material, finished product or
services.
Transport activity occurs

Transportation when materials are
transported from one
department to another.
The symbol is used when in-

process material is restrained
D Delay in location waiting for next

activity.
The symbol is used when the

Storage process materials or finished
products are stored in the
storage.
4.3.2 Process flow chart
52
Receiving cocoa seed from supplier
(Sarawak)
Clean the cocoa seed before continue to next step
The cocoa is then were cook (30 minutes).
Drying machine is then being used to cool down the
cocoa about 10 minutes
Dried cocoa is then being grind until it becomes
powder.
Supervisor will then inspect the measurement of

product quantity and quality.
53
Packaging process conducted.
Supervisor inspect the packaging of the
product.
The product is put in the box.
Product is put in the storage room.
Store before distribution the Classy cocoa
4.3.3Operation layout
54
Cocoa bean
Packaging
Wardrobe
Machine
Surau
4.3.4 Activity Chart
The The
Count Classy
the boxCocoa is packed
is transport
Classy Cocoa theinto
to market
that arequired
big box
branch
Branch
55 will deliver
Receive order from market to market
Production planning
Output per month
56
Average sales forecast per month = RM 82,250

The sales price = RM 12.50
Number of output per month = RM 82,250
RM 12.50
= 6,580 units per month
Number of output per day
If the number of working days per monthis 26 days.

=6580
26
= 253.08units per day @ 253 units per day
Number of output per hour
If 7 hours working per day.

= 253
7
= 36.14 units per hour @ 36 units per hour
4.4 Materials planning

Materials requirement planning
57
Bill of materials
Materials Quantity ( kg ) Price (kg) Total price (RM )
Cocoa seed 6,000 9.00 54,000
Identity supplier
Material Supplier
Cocoa seed Samarahan Cocoa Sdn. Bhd.

94300 Kota Samarahan, Sarawak, Malaysia
4.4.1 Machine and Equipment planning

Amount of machine and equipment required
58
= Required capacity required per day

Machine capacity per day
Roasted machine
= 253 units per day
420 minute
= 0.60 @ 1 machine
Heating machine
= 253 units per day
420 minute
= 0.60 @ 1 machine
Drying machine
= 253 units per day
420 minute
= 0.60 @ 1 machine
Grind machine
= 253 units per day
420 minute
= 0.60 @ 1 machine
Packaging machine
= 253 units per day
420 minute
= 0.60 @ 1 machine
4.4 List of machine and equipment
Machine No. of machine
59
Roasted machine 1
Heating machine 1
Drying machine 1
Grind machine 1
Packaging machine 1
4.4.1 List of machine supplier
Machine Supplier
Roasted machine Kirara Trading Corporation

No.5 Bangunan Wijaya, Jalan Laksamana,
Heating machine 55100 Kuala Lumpur
Drying machine Panasonic Sdn. Bhd.

Kompleks Sinar Bakti, 798 Main Road 13600
Putrajaya, Malaysia
Grind machine Kurara Trading Corporation

No.5 Bangunan Wijaya, Jalan Laksamana,
Packaging machine 55100 Kuala Lumpur
4.4.2 Machine and equipment
Item Quantity Price/unit ( RM ) Total cost ( RM )
60
Roasted machine 1 22,300 22,300
Heating machine 1 25,800 25,800
Drying machine 1 14,200 14,200
Grind machine 1 20,000 20,000
Packaging machine 1 17,700 17,00
TOTAL 5 RM 100,000 RM 100,000
4.6 Organizational chart
CEO
ADMINISTRATION FINANCIAL MARKETING

MANAGER MANAGER MANAGER
OPERATIONAL MANAGER
Operator and
Quality Checker
Transport and
Distribution
Technician
4.6.1 Amount direct labor required
61
Operation Manager
= 253 units per dayX 1.6601 minutes
420 minute
= 1 worker
Operator and Quality Checker

420 minute
= 2 workers
Transport and Distribution
420 minute
= 1 worker
Technician
420 minute
= 1 worker
4.7 List of Operation Personnel
62
Position No Of Personnel
Operator and Quality Checker 2
Transport and Distribution 1
Technician 1
4.7.1 Schedule of Task and Responsibilities
Development of individual programme budgets.

They also supervise and coach office manager on a
Operation Manager weekly basis.
4.7.2
Discuss inspection results with those responsible for
products, and recommend necessary corrective
Operator actions.
Make sure the quality of each of our finished

products. Inspects, test, or measure materials,
products, installations, or work for conformance to
Quality Checker specification. Notify supervisors and other
personnel of production problems and assist in
identifying and correcting these problems. Discard
or reject products, materials, or equipment not
meeting specifications. Mark items with details such
as grade or acceptance-rejection status.
Distribute the products from the factory to retailers

Transport And Distribution and stores
Ensure the machine and equipment working well.

Technician
Schedule of Remuneration
Position No Monthly EPF ( RM ) SOCSO (RM) Amount
63
Salary (RM) 12% 2% (RM)
Operation 1 2500 300 50 2,850

Manager
Operator and
Quality 2 900 108 18 2,052
checker
Transport
and 1 900 108 18 1,026
Distribution
Technician 1 1,200 144 24 1,368
TOTAL 7,296
4.8 Overhead Requirement
4.8.1Operations Overhead
(Indirect labour / materials/ insurance/ maintenance and utilities)
64
No. Types of Overhead Expenses ( RM )
1 Electricity 700
2 Water 450
3 Telephone and Internet 400
4 Box of transportation 500
5 Transportation Cost 1,000
6 Premise Insurance 600
7 Road Tax & Insurance for Lorry 3,240
8 Lorry Maintenance 2,500
TOTAL 9,390
4.8.2 Total Operations Cost
Total Operation Cost = Direct Material Cost (raw material) + Direct Labour Cost
(Total remuneration) + Overhead Cost (total operations overhead)
65
= RM 54,000 + RM 7,296 + RM 8,440

= RM 69,736
Cost per unit

Cost per unit = Total Operations Cost (RM)
Total number of output (per month)
= RM 69,736
6,580 units
= RM 10.60
Productivity Index (PI)
PI = Total value of output (sales forecast per month)

Total Value of input (Total Operation Cost)
= RM 82,250
RM 69,736
= 1.18 @ 2.00
4.9 Location Plan
66
4.9.1 Factors that influence the choice of location
1. Manufacturing Activity
2. Labour Supply
3. Transportation
4. Infrastructure
4.10 Business and Operation Hours
67
Business hour = 9 hours per day (8.00 am until 5.00 pm)
Operations hour = 7 hours per day (9.00 am until 4.00 pm)
4.10.1 License, permits and regulations required
a) Manufacturing License
MajlisBandaraya Kuala Terengganu,
Tingkat 8, MenaraPermint, Jalan Sultan Ismail
20200 Kuala Terengganu.
b) Building License
MajlisBandaraya Kuala Terengganu,
Tingkat 8, MenaraPermint, Jalan Sultan Ismail
20200 Kuala Terengganu.
4.11 Operations Budget
68
Item Fixed asset Monthly Other expenses

(RM) expenses (RM) (RM)
Machine and equipment 100,000

Factory renovation 10,000
Lorry 60,000
Raw materials 54,000

Salaries + EPF + SOCSO 7,296
Utilities 1,550
Box of transportation 500
Transportation Cost 1,000
Rent & Deposit 5,667
Premise Insurance 600

Road Tax & Insurance for 3,240
Lorry
Lorry Maintenance 2,500
TOTAL 170,000 70,013 6,340
69
FINANCIAL
PLAN
5.0 Financial Plan
70
5.1 Introduction to Finance
The financial plan is the final step in the preparation of a business plan. It is the most crucial
aspects of the business plan and involves determining the total project costs, choice of
sources of financing and preparation of financial projections in terms of pro forma
statements, which include cash flow, income statements and balance sheet. In addition, the
financial plan should be supported by depreciation schedules for every fixed asset owned as
well as amortisation schedules for loan and hire purchase repayments.
Classy Cocoa shows the financial plan to show the short-term and long-term requirements in
order to start our business for early three years from 2015 to 2017. The financial plan also
indicate Classy Cocoa’s sources of finance which by internal sources or external sources.
5.1 Objectives of a Financial Plan
 To determine the size of investment
 To identify and propose the relevant sources of finance
 To ensure that the initial capital is sufficient
 To analyse the viability of the project before actual investment is committed
 To be used as a guideline for project implementation
5.3 The Process of Developing a Financial Plan
 Step 1 : Gather all financial inputs
 Step 2 : Determine the project implementation cost
 Step 3 : Determine the sources of finance
 Step 4 : Prepare the pro forma cash flow statement
 Step 5 : Prepare the pro forma income statement
71
 Step 6 : Prepare the pro forma balance sheets
 Step 7 : Perform basic financial analysis
4.4 Financial Inputs
1) Administrative Expenditure
ADMINISTRATIVE EXPENDITURE
Fixed Assets RM
Land & Building -
Furniture & Fittings 7,245
Working Capital
Office Supplies 700
Other Expenditure
Other Expenditure
Pre-Operations
Deposit (rent, utilities, etc.)
Business Registration & Licences 60
Insurance & Road Tax for Motor Vehicle
Other Expenditure
TOTAL 19,177
72
2) Marketing Expenditure
MARKETING EXPENDITURE
Fixed Assets RM
Signboard 650
Working Capital
Other Expenditure
Other Expenditure 2580
Pre-Operations
Business Registration & Licences
Insurance & Road Tax for Motor Vehicle
Other Expenditure
TOTAL 9,936
73
3)Operations Expenditure
OPERATIONS EXPENDITURE
Fixed Assets RM
Machine & Equipment 100,000
Factory Renovation 10,000
Lorry 60,000
Working Capital
Raw Materials 54,000
Carriage Inward & Duty -
Salaries, EPF & SOCSO 7,296
Utilities 1,550
Box of Transportation 500
Transportation Cost 1,000
Rent & Deposit 5,667
Other Expenditure
Pre-Operations
Business Registration & Licences
Insurance & Road Tax for Motor Vehicle 3,240
TOTAL 246,353
74
4.5 Project Implementation Costs
CLASSY COCOA
PROJECT IMPLEMENTATION COST
Requirements Cost
Fixed Assets
Land & Building
Furniture & Fittings 7,245
Signboard 650
Machine & Equipment 100,000

Factory Renovation 10,000
Lorry 60,000
Working Capital 1 months

Administrative 11,872
Marketing 6,706
Operations 70,013
Pre-Operations & Other Expenditure 8,980
Contingencies 10% 27,602
TOTAL 303,013
The project implementation cost as shows above indicate that our company need to start up
the business and operation efficiently with the amount of RM 303,618. This cost is included
fixed assets, working capital for all department, other expenditure for monthly and annually
and also expenditure for pre-operations.
75
4.6 Sources of Finance
CLASSY COCOA
SOURCES OF FINANCE
EXTERNAL INTERNAL
CONTRIBUTIONS CONTRIBUTIONS
Hire-
Requirements Cost Loan Own Contribution
Purchase
Existing
Fixed Assets Cash
F. Assets
Land & Building
Furniture & Fittings 7,245 7,245
Signboard 650 650
Machine & Equipment 100,000 80,000 20,000

Factory Renovation 10,000 10,000
Lorry 60,000 50,000 10,000
Working months
1
Capital
Administrative 11,872 11,872
Marketing 6,706 6,706
Operations 70,013 60,450 9,563
Pre-Operations & Other
8,980 8,980
Expenditure
Contingencies 10% 27,602 10,102 17,500
TOTAL 303,013 150,552 50,000 102,516
76
The sources of finance of Classy Cocoa’s refers to the sources where funds to finance the
project implementation costs can be secured. These can be categorised in internal and
external sources. The internal sources of Classy Cocoa is come from all partners’ contribution
in the form of cash which already agreed by all partners. The total amount for all partners’
contributions is approximately RM 102,516 which is every partners contribute their cash 20%
RM 20,503.20 each. While, the external sources of financing are comes from loan provided
by SME Bank which are RM 150,552 to cover the shortage of the project implementation
cost. The interest rate given by SME Bank is 4% within 7 years. The total amounts of funds
that has to be sourced should equal to the project implementation cost to ensure that the
project is fully funded and to avoid the risks of under-financing.
77
5.7 Depreciation Schedules
Fixed Asset Furniture & Fittings

Cost (RM) 7,245
Method Straight Line
Economic Life
5
(yrs)
Accumulate
Yea Annual d
Book Value
r Depreciation Depreciatio
n
- - 7,245
1 1,449 1,449 5,796
2 1,449 2,898 4,347
3 1,449 4,347 2,898
4 1,449 5,796 1,449
5 1,449 7,245 -
Fixed Asset Signboard

Cost (RM) 650
Economic Life
5
(yrs)
Accumulate
Yea Annual d
Book Value
n
- - 650
1 130 130 520
2 130 260 390
3 130 390 260
4 130 520 130
5 130 650 -
Fixed Asset Machine & Equipment

Cost (RM) 100,000
Economic Life
5
(yrs)
Accumulate
Yea Annual d
Book Value
n
- - 100,000
1 20,000 20,000 80,000
2 20,000 40,000 60,000
78
3 20,000 60,000 40,000

4 20,000 80,000 20,000
5 20,000 100,000 -
Fixed Asset Factory Renovation

Cost (RM) 10,000
Economic Life (yrs) 5
Accumulate
Yea Annual d
Book Value
n
- - 10,000
1 2,000 2,000 8,000
2 2,000 4,000 6,000
3 2,000 6,000 4,000
4 2,000 8,000 2,000
5 2,000 10,000 -
Fixed Asset Lorry

Cost (RM) 60,000
Economic Life
5
(yrs)
Accumulate
Yea Annual d
Book Value
n
- - 60,000
1 12,000 12,000 48,000
2 12,000 24,000 36,000
3 12,000 36,000 24,000
4 12,000 48,000 12,000
5 12,000 60,000 -
79
5.8 Loan & Hire Purchase Ammortisation Schedules
LOAN REPAYMENT SCHEDULE

Amount 150,552
Interest Rate 4%
Duration (yrs) 7
Method Annual Rest
Yea Principa Total Principal
Interest
r l Payment Balance
- - 150,552
1 21,507 6,022 27,529 129,044
2 21,507 5,162 26,669 107,537
3 21,507 4,301 25,809 86,029
4 21,507 3,441 24,949 64,522
5 21,507 2,581 24,088 43,015
6 21,507 1,721 23,228 21,507
7 21,507 860 22,368 (0)
HIRE-PURCHASE REPAYMENT SCHEDULE

Amount 50,000
Interest Rate 4%
Duration (yrs) 7
Yea Principa Total Principal
Interest
r l Payment Balance
- - 50,000
1 7,143 2,000 9,143 42,857
2 7,143 2,000 9,143 35,714
80
3 7,143 2,000 9,143 28,571

4 7,143 2,000 9,143 21,429
5 7,143 2,000 9,143 14,286
6 7,143 2,000 9,143 7,143
7 0 0 - 7,143
5.9 Pro-Forma Cash Flow Statement
81
MONTH YEAR 1 YEAR 2 YEAR 3

TOTAL CASH INFLOW 969,013 756,850 793,643
82
TOTAL CASH OUTFLOW 696,629 581,018 598,685

CASH SURPLUS/
272,383 175,832 194,958
(DEFICIT)
BEGINNING CASH
272,383 448,216
BALANCE
ENDING CASH BALANCE 272,383 448,216 643,173
1,200,000
1,000,000
800,000
Total Cash Inflow

600,000
Total Cash Outflow
Ending Cash Balance
400,000
200,000
0
2015 2016 2017
Pro-forma cash flow statement refers to the projected statements of cash inflow and outflow
throughout the planned period. Cash inflow is the projected amount of cash flowing into the
company while cash outflow is the projected amount of cash flowing out of the company.
Cash deficit or surplus is the difference between cash inflow and outflow. The graph above
indicates our total cash inflow, total cash outflow and ending cash balance.
Our total cash inflow for 2016 which are RM 969,013 are higher compared to the year of
2016 and 2017 which are RM 756,850 and RM 793,643 respectively. This is due to the
amount of capital and loan includes in cash inflow of 2015. But, the graph shows total cash
inflow has an increment from 2016 to 2015 due to increase in our annual revenue.
Our total cash outflow for 2015 which are RM 696,629 are higher compared to the year of
2016 and 2017 which are RM 581,018 and RM 598,615 respectively. This is because in order
to start up our new business, a lot of investment needs to be done for purchasing fixed assets
and paid for pre-operating and other expenditures. In 2016, our total cash inflow decreased
83
because it includes only marketing, operation and administration expenditure and other
expenditure that need to pay annually such as insurance and road tax for vehicle, interest and
hire purchase. For 2017, the total cashoutflow slightly increases due to the changes of
working capital that had been set up by general Manager which increase about 3%.
The ending cash balance from 2015 to 2017 shows the increment from year to year
respectively which are RM 272,383, RM 448,216 and RM 643,173.
5.10 Pro-Forma Production Cost &Income Statement
CLASSY COCOA
PRO-FORMA PRODUCTION COST STATEMENT
Year 1 Year 2 Year 3
84
Raw Materials
Opening Stock 0 13,500 14,175
Current Year Purchases 108,000 113,400 119,070
Ending Stock 13,500 14,175 14,884
Raw Materials Used 94,500 112,725 118,361
Carriage Inward
94,500 112,725 118,361
Salaries, EPF & SOCSO 87,552 89,303 91,982
Factory Overhead
Depreciation of Fixed
34,000 34,000 34,000
assets (Operations)
Utilities 18,600 18,972 19,541
Box of Transportation 6,000 6,120 6,304
Transportation Cost 12,000 12,240 12,607
Rent & Deposit 68,004 69,364 71,445
Total Factory Overhead 70,600 71,332 72,452
Production Cost 320,656 342,724 354,240
CLASSY COCOA
PRO-FORMA INCOME STATEMENT
Sales 720,000 756,000 793,800
Less: Cost of Sales
Opening Stock of
20,000 21,000
Finished Goods
85
Production Cost 320,656 342,724 354,240

Less: Ending Stock of
20,000 21,000 22,050
Finished Goods
0 0 0
300,656 341,724 353,190
Gross Profit 419,344 414,276 440,610
Less: Expenditure
Administrative
142,464 145,313 149,673
Expenditure
Marketing Expenditure 80,472 82,081 84,544
Other Expenditure 5,080 5,182 5,337
Business Registration &
60
Licences
Insurance & Road Tax
3,240 3,240 3,240
for Motor Vehicle
Other Pre-Operations
600
Expenditure
Interest on Hire-Purchase 2,000 2,000 2,000
Interest on Loan 6,020 5,160 4,300
Depreciation of Fixed
1,579 1,579 1,579
Assets
Total Expenditure 241,515 244,555 250,673

Net Profit Before Tax 177,829 169,721 189,937
Tax 0 0 0
Net Profit After Tax 177,829 169,721 189,937
Accumulated Net Profit 177,829 347,550 537,487
TOTAL GROSS TOTAL

YEAR NET INCOME
SALES PROFIT EXPENDITURES
2015 720,000 419,344 241,515 177,829
2016 756,000 414,276 244,555 169,721
2017 793,800 440,610 250,673 189,937
86
900,000
800,000
700,000
600,000
500,000 Total Sales

Gross Profit
400,000 Total Expenditure
Net Income
300,000
200,000
100,000
0
2015 2016 2017
The graph above shows Classy Cocoa’s total annual sales, total gross profit, total
expenditures and annual net income for three consecutive years which are 2015, 2016 and
2017.
Total annual sales for our company are increase from one year to another year. The annual
sales in 2015 is RM 720,000, increased to RM 756,000 which increment about 5% in 2016
then increased to RM 793,800 in 2017 which are increment about 5% from the previous year,
2016.Total gross profit indicate total amount after deducting cost of goods manufactured
from sales. The amount has shown an increment from 2015 to 2017 which are RM 419,344,
RM 414,276 and RM 440,610 respectively.
Total expenditure shows an increment from 2015 to 2017. In 2015, the total expenditure are
RM 241,515, increased in 2016 which are RM 244,555 and increased in 2017 which are RM
250,673.
In the graph above, we can see that net income of Classy Cocoa is increased gradually within
three years. In 2015, our net income is RM 177,829, increased in 2016 which are RM
169,721 and increased in 2017 which are 189,937.
5.11 Pro-Forma Balance Sheet
CLASSY COCOA
PRO-FORMA BALANCE SHEET
ASSETS
Non-Current Assets (Book

Value)
87
Land & Building

Furniture & Fittings 5,796 4,347 2,898
Signboard 520 390 260
Machine & Equipment 80,000 60,000 40,000

Factory Renovation 8,000 6,000 4,000
Lorry 48,000 36,000 24,000
Other Assets
Deposit
142,316 106,737 71,158
Current Assets
Stock of Raw Materials 13,500 14,175 14,884
Stock of Finished Goods 20,000 21,000 22,050
Accounts Receivable 4,000 3,150 3,308
Cash Balance 272,383 448,216 643,173
309,883 486,541 683,415
TOTAL ASSETS 452,199 593,278 754,573
Owners' Equity
Capital 102,516 102,516 102,516
Accumulated Profit 177,829 347,550 537,487
280,345 450,066 640,003
Long-Term Liabilities
Loan Balance 128,997 107,498 85,998
Hire-Purchase Balance 42,857 35,714 28,571
171,854 143,212 114,569
Current Liabilities
Accounts Payable
TOTAL EQUITY &

452,199 593,278 754,573
LIABILITIES
5.12 Financial Performance
CLASSY COCOA
FINANCIAL RATIO ANALYSIS
EFFICIENCY
Inventory Turnover 9 10 10
88
PROFITABILITY
Gross Profit Margin 58.24% 54.80% 55.51%
Net Profit Margin 24.70% 22.45% 23.93%
Return on Assets 39.33% 28.61% 25.17%
Return on Equity 63.43% 37.71% 29.68%
SOLVENCY
Debt to Equity 61.30% 31.82% 17.90%
Debt to Assets 38.00% 24.14% 15.18%
Time Interest Earned 29 32 43
The table above shows the financial ratio analysis based on three categories which are
efficiency, profitability and solvency. The efficiency ratio measures how efficient our
business uses assets to generate sales. The profitability ratios are important indicators of the
business’ financial performance. The final category which is solvency ratios is designed to
measure the degree of financial risk that our company faces.
89
Inventory Turnover
12
10
0
2015 2016 2017
Inventory turnover ratio indicates how many times the inventory is sold and replaced in a
year. The higher the ratio, the faster the inventory is being sold and does not have
overstocking problem. The graph above shows an increment in our inventory turnover from
2015 to 2017. In 2015, our company has a good in inventory management which is 9 times
and increase in 2016 which is 10 times. For the year 2017, our company still can manage
inventory turnover which is 10 times.
90
Gross Profit Margin

70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2015 2016 2017
The graph above shows of our gross profit margin. In 2015, the gross profit margin is 58.24%
where for each RM 1.00 of sales revenue generated, the company earns 58.24sen gross profit.
While, in 2016, the grossprofit margin decreases to 54.80% where each RM 1.00 of sales
revenue generated, the company earns 54.80sen grossprofit. In 2017, the grossprofit margin is
55.51% where it increases from year before. For RM1.00 sales revenue generated, the
company earns 55.51sen grossprofit. For decreasing value from 2015 to 2016 is because our
production cost for the first year is lower and our company does not have any beginning
stock. However, we recover the loss from the first two years and shows increasing trend from
2016 to 2017.
91
Net Profit Margin

30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2015 2016 2017
The graph above shows of our net profit margin. In 2015, the net profit margin is 24.70%
where for each RM 1.00 of sales revenue generated, the company earns 24.70sen net profit.
While, in 2016, the net profit margin decreases to 22.45% where each RM 1.00 of sales
revenue generated, the company earns 22.45sen net profit. In 2017, the net profit margin is
23.93% where it increases from year before. For RM1.00 sales revenue generated, the
company earns 23.93sen net profit. For decreasing value from 2015 to 2016 is because our
production cost for the first year is lower and our company does not have any beginning
stock. However, we recover the loss from the first two years and shows increasing trend from
2016 to 2017.
92
Return on Assets
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2015 2016 2017
The graph above shows Return on Assets of our company which shows decrement from year
2015 to 2017. In 2015, the return on assets is 39.33% where for each RM1.00 invested, the
company earns 39.33sen return. In 2016, the return on assets is 28.61% where for each RM
1.00 invested, the company earns 28.61sen return. In 2017, the return assets are 25.17%
where for each RM 1.00 invested, the company earns 25.17sen return. The graph return on
assets for our company shows a decrement because there are a few assets that we used only
for attract more customer but does not give any return to company. The examples of these
assets are furniture and fittings and signboard.
93
Return on Equity
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2015 2016 2017
The graph above shows return on equity which shows a decrement. In 2015, the return on
equity is 63.43% where for each RM 1.00 invested, the owner earns 63.43sen return. In 2016,
the return on equity is 37.71% where for each RM 1.00 invested, the owner earns 37.71sen
return. In 2017, the return of equity is 29.68% where for each RM 1.00 invested, the owner
earns 29.68sen return.
94
Debt to Equity
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2015 2016 2017
The graph for debt for equity for our company shows a decrement. In 2015, the company has
a debt to equity ratio of 61.30%. This means every RM 1.00 invested by theowner, the
company has RM 61.30 debt financing. In 2016, the company debt to equity ratio decrease to
31.82%. This means every RM 1.00 invested by theowner, the company has RM 31.82 debt
financing. In 2017, the company debt to equity ratio decrease to 17.90%. This means every
RM 1.00 invested by the owner, company has RM 17.90% debt financing.
95
Debt to Assets
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2015 2016 2017
In 2015, 38.00% of the total assets are financed by debt while remainder are financed by
owner’s equity. In 2016, 24.14% of the total assets are financed by debt while remainder are
financed by owner’s equity. In 2017, 15.18% of the total assets are financed by debt while
remainder are financed by owner’s equity. It means that our company can reduce the level of
debt efficiently for the first three years from 201 to 2017.
96
Times Interest Earned

50
45
40
35
30
25
20
15
10
5
0
2015 2016 2017
The graph above shows our company time interest earned which shows an increment from
one year to another year. In 2015, the time interest ratio is 28 indicates that the company’s
profit can cover its interest expenses 29 times. In 2016, the times interest earned ratio is 32
indicates that the company’s profit can cover its interest expenses 32 times. In 2017, the times
interest earned ratio is 43 indicates that the company’s profit can cover its interest expenses
43 times. So, our company is able to cover interest charges out of operating profits. Our
company also is able to fulfil the interest obligations.
97
6.0 Conclusion
Throughout the business proposal and based on the research we have done, these factory of
cocoa are marketable medium to gain lots of profit. Mostly we refer the financial report
analysis to foreseen our business performance in the future. Here, we finalize our business
stability for the first three years (2015-2017).
According to our financial report, we manage to increase the profits from year to year
respectively. Classy Cocoa manages to gain and earn net profits with the ratio of 20.72% in
one year respectively. The solvency status also shows the debt to asset decrease indicates that
our company profit can cover the interest expense in three years times.
As a conclusion, we are confident that our business performances will develop and expand
well and hopefully with this, our applications to any financial institutions will help us to
upgrade our business and maintain it well.
98
APPENDICES
99
100
101
PARTNERSHIP
AGREEMENT
102
103
104
105
106
107

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PT 4763 PerindustrianChendering,

21080 Kuala Terengganu,

SIR MOHD HUSNIN BIN MAT YUSOF

4.3 Operation Process 44-50

1.0 Business Plan

1.1.1 Name of the company

1.1.2 Nature of business

1.1.3 Industry Profile

1.1.4 Location of the business

pt 4763 PerindustrianChendering, 21080 Kuala Terengganu, Terengganu

1.1.5 Date of business commencement

21th December 2015.

1.1.6 Factor in selecting the proposed business

1.1.7 Future prospect of the business

1.2 Purpose of preparing the business plan

a) To evaluate the project viability and growth potential

b) To act as a guideline for the management of the proposed business

c) To allocate business resources effectively

 Small business has limited resources at their disposal.

d) To apply a loan from SME Bank

 As our starting budget to introduce our business

1.3 Business Background

Name of the Business CLASSY COCOA

Business Address PT 4763 Perindustrian Chendering, 21080

Telephone Number 06-7318773

Fax Number 06-7208387

Form of Business Partnership

Main Activity Produces and distribute cocoa

Date of Commencement 21 December 2015

Date of Registration 11 November 2015

Registration Number (146080-X)

Name of Bank MAYBANK

Bank Account Number 27110964567661

1.4 Vision, Mission and Objectives

 To be a well-known manufacturer in providing the best quality of cocoa powder

 To be the most progressive, efficient, profitable and respectable organization.

i. SHORT TERM GOALS (1 YEAR AND BELOW)

ii. INTERMEDIATE TERM GOALS (1 YEAR TO 4 YEARS)

iii. LONG TERM GOALS (10 YEARS AND ABOVE)

 Expend our business to nearest foreigncountries such as Thailand and Indonesia

1.5 Organizational Chart

MUHAMMAD ISMAIL BIN ABDUL

ADI FARHAN BIN HAMZAH ADMINISTRATION MANAGER

NURUL FATIHAH BINTI

MUHAMMAD ZARIQ BIN

1.6 Logo and Motto

1.7 PARTNERSHIP BACKGROUND

TOTAL CONTRIBUTIONS 100 % 102,516

1.8 Background of partners

1.8.1 General Manager

Name of the partner : Muhammad Ismail Bin Abdul Rahman

Identity Card Numbers : 900218-14-6353

Permanent Address : No A-7-17 RumahPangsaKampung

Correspondence Address : No A-7-17 RumahPangsaKampung

Telephone Number/Fax Number : 017-2350062

Date of Birth : 18.02.1986

Marital Status : Single

Academic Qualification : Master in Economies

Course Attended : ‘How to be a Successful Manager’

Skills : Leadership and teamwork

Present Occupation : General Manager at Under Armour

Previous Business Experience : Marketing Manager at Nestle