GROUP 3

1. Mohd Farhan bin Abdul Rahim (CEB 090031) 2. Nor ‘Izzatul Solehah binti Baharudin (CEB 110047)3. Mohd Firdaus Bin Abdul Khalil (CEB 110037)4. Siti Nurul Azwanee Binti Kon @ Sapawi (CEB

110074)

MANAGER & FINANCE

Nor ‘Izzatul Solehah

OPERATION/PRODUCTION

Firdaus Khalil

ADMINISTRATION

Siti Nurul Azwanee

MARKETING AND SALES

Mohd. Farhan

Management Team

Current Status

• Preparing : to provide the best of crochet products

with the highest quality crochet product and best service possible.

• In progress to find more source of money to larger the business

• Find the strategic place/store for our business.

Opportunity and Target Market

• Targeting on all age level as our products are suitable for all the age level.Baby-wear - Future parents / anyone related

to give as a gift

Card holder - University or college students / workers

Cozies - Teenagers to adults who own gadgets

Sleeve - Teenagers to adults who own gadgets

Brooch - Girls, ladies, women

CompetitionCompetitor Main products

Sinar Kreatif Baby and kids wear

Sew Addict Baby wear

Nureffa Craft Amigurumi

Comel Crochet Sue Baby wear

Myhandmade-wie Baby wear

Baizura Rahman Bag

Marketing and Sales• Product

making and selling crochet products for all ages, from new born babies to adults

100% handmade using various type of local and imported yarns from all over the world

ready-made and custom-made products 5 product lines (baby-wear, card holder,

cozies, sleeves and also brooch)

• PriceReady-made items are relatively cheaper than the

custom-made itemsDiscount (free postage services or 5%-10% discounts. )

- buy more than 5 items- items valued RM150 above

Payment method - online banking - bank deposit (Maybank Berhad, Bank

Islam Malaysia Berhad or CIMB Bank)

Marketing and Sales

Value-based pricingItem Price

Baby booties RM18 - RM25

Baby hat/brim RM20 – RM30

Baby mittens RM10 – RM15

Baby headband RM12 – RM20

Baby set RM30 – RM90

Card holder RM10

Mobile phone/hard disk cozy RM10 – RM20

Pen-drive cozy RM3 – RM7

Mug coaster cozy RM15 – RM25

Bottle cozy RM20 – RM30

Tab sleeve (7” – 10”) RM20 – RM35

Laptop sleeve (10” – 14”) RM30 – RM50

Brooch RM4 – RM7

• Place Targeting people within Malaysia only

Don’t have any physical store

Items will be ship using Pos Malaysia services

No shipping in weekends and public holidays.

Marketing and Sales

• PromotionGoogle Site (main way) addressed

https://sites.google.com/site/bbacbeb2302group3/

Advertise the website at other social networks

Promotion price during special occasions (during our anniversary, Eid, Christmas Eve )

Conduct a contest

Marketing and Sales

Financial Projections

A. Capital Expenditure RM RM Machinery and Equipment 278 Sub-total 278

B. Working Capital (anually) Marketing 1350 Operation 2351 Administrative 2400 Sub-total 6101

C. Other Expenditure Pre operating Business registration 50 Sub-total 50 TOTAL 6429

i) Project implementation cost

Equity contributions RM RM

Cash 2000

Equipments 245

Total 2245

ii) Sources of finance

Financing Sought

Partners cash contribution

Partners fixed asset

Year Year 1 Year 2 Year 3A Cash inflow: Equity - cash 2,000 0 0 Equipment 245 0 0 Cash sales 6,900 7,000 9,000B Total Cash Inflow 9,145 7,000 9,000C Cash Outflow: Operations Expenditure: Raw Materials 1,151 1,000 1,000 Direct Labor 1,200 1,500 1,800 Administrative Expenditure: Salaries 2,400 3,000 3,600 Marketing Expenditure: Promotion 150 Salaries 1,200 1,500 1,800 Capital Expenditure Equipments 278 0 0 Pre Operational expenditure 50 0 0D Total Cash Outflow 6,429 7,000 8,200E Cash Surplus/Deficit 2,716 0 800F Beginning Cash Balance 0 2,716 2,716G Ending Cash Balance 2,716 2,716 3,516

iii) Pro forma Cash Flow Statement (Annually)

RM RM Sales 6,900 Cost of goods sold: Opening stock for finished goods 0 Add: Cost of goods produced 1,151 Goods available for sale 1,151

Less: Closing stock for finished goods 100 1,051 GROSS PROFIT 5,849 Less: Operating expenses Administrative expenses 2,400 Marketing 1,350 Salary 1,200 Total operating expenses 4,950 NET PROFIT BEFORE TAX 899

iv) Pro forma income statement

RM RM FIXED ASSET Equipments 523 523 CURRENT ASSET Cash 2,000 Closing stock for raw materials 276 Closing stock for finished goods 100 2,376 TOTAL ASSETS 2,899

EQUITY Capital 2,000 Accumulated profit 899 2,899

CURRENT LIABILITIES 0 LONG TERM LIABILITIES 0 0 TOTAL EQUITY AND LIABILITIES 2,899

v) Pro forma Balance Sheet

TECHNOLOGYNot necessary for making a product

(skills and creativity are most important)-yarn, thread, crochet hook

Computer and internet for online business

PROBLEMSHard to get material supplies

- yarns out of stock- A few type of yarns are limited, no

reproduce (need to explain to the customers)

Back out buyer

SOLUTIONActive online business (launched an official

Google sites) https://sites.google.com/site/bbacbeb2302group3/

Working at home (minimize operating expense)

Getting fund from partner contribution

Own saving and borrow from family or relatives

SUMMARY• Will overcome problems before 2015

• Maximize the profit, minimum the cost

• Hope can satisfied customer want and delivered the value by making a quality products.

• Want to be the Web’s Most Popular Crochet Store