BUSINESS MODEL CANVAS

PRINCIPLES OF ENTREPRENEURSHIP (ENT530): BUSINESS MODEL CANVAS

Student name Student ID Programme Group

Nurul Syafizah Bt Mohd Ali 2019229968 BA242 4A

Marsha Alya Bt Mohamad Husni 2019291576 BA242 4A

Nurul Izzah Bt Khasnan 2019207032 BA242 4A

Mohamad Sharol Bin Zainudin 2019643594 BA242 4A

Syarifah Nabilah Binti Syed Hassan 2019489618 BA242 4A

PREPARED FOR: MADAM SITI ZAITUN BINTI SADDAM

 TABLE OF CONTENT

ACKNOWLEDGEMENT 3

EXECUTIVE SUMMARY 4

1.INTRODUCTION 5

1.1 Company Background 5

2.BUSINESS PROPOSAL 11

2.1 Customer Segments 11

2.2 Unique Value Proposition 14

2.3 Channels 16

2.4 Customer Relationships 19

2.5 Revenue Streams 21

2.6 Key Activities 23

2.8 Key Partnerships 27

2.9 Cost Structure 28

3. CONCLUSION 30

4. APPENDICES 31

5. REFERENCES 33

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ACKNOWLEDGEMENT

First of all, we would like to thank ALLAH S.W.T because we were able to finish the
assignment that has been given to us. We are happy that we managed to complete the Business
Model Canvas as it is one of the requirements in order to fulfil the course assessment for this
code which is (ENT530).

Secondly, a big thank you to our Principles of Entrepreneurship’s lecturer, Madam Siti
Zaitun Binti Saddam because without her guidance, our assignment will not be able to be
completed and be done properly. Her efficient contribution helped us to produce a good
Business Model Canvas report with the complete requirements needed. Moreover, we would
like to express our sincerest appreciation for her assistance for every question we have asked.

In a nutshell, much thanks to our family and friends for always supporting us to
complete this Business Model Canvas by helping us with some ideas to make this report. They
always give us morale support and guidance about entrepreneurship. In addition, the report has
been prepared with support and cooperation from many people, especially our group members.
Lastly, we really hope this Business Model Canvas will help us to know more about the
Entrepreneurship world and the knowledge that we have gathered will guide us to become
better and successful entrepreneurs in the future.

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EXECUTIVE SUMMARY

This report will explain about the Business Model Canvas (BMC) for SrunchieKit.
SrunchieKit is actually a hairband made from silk but has other uses as well such as to be a
bracelet and also a mask. This is a new innovation for Scrunchies that is usually just for
hairband. Since we all are in pandemic COVID-19 phases, the mask is important to be worn
anywhere. Our premise is located at a famous and busy city in Selangor which is at Section 7
Shah Alam and planning to open on 1st July 2021. The uniqueness of the material that has been
used to produce the scrunchies and also the strategic location for the premise easily accessible
to potential customers. Besides, the SrunchieKit’s SWOT analysis can be determined by
looking at the competitors, which are Scrungie and Theuploft. These two competitors have
become the benchmark for SrunchieKit in order to have better planning in handling business
efficiently and successfully.

As the major BMC purpose is to assist new businesses in planning business accurately
to ensure there are no any major problems if the company operates the business in the future.
SrunchieKit has followed the BMC guidelines to determine if their business prospects are
worthwhile if they choose to proceed. It includes customer segment, value propositions,
channels, customer relationships, revenue streams, key activities, key resources, key
partnership, and cost structure. The further explanation about the BMC of SrunchieKit may be
found in this report.

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1. INTRODUCTION

1.1 Company Background

SrunchieKit is a partnership business. We chose to build this kind of company because

we want to operate a Scrunchies with unique material with various uses as well as being
profitable. The founder of this company is Syarifah Nabilah Syed Hassan. Since SrunchieKit
is a partnership business, we will have a few key positions for our partnership in this company.
The General Manager position of this company belongs to Mohamad Sharol Bin Zainudin. The
Assistant Manager is Nurul Syafizah Bt Mohd Ali while Nurul Izzah Binti Khasnan will be
appointed as Finance Manager. Not to forget the position for Marketing Manager is held by
Marsha Alya Bt Mohamad Husni. This company is going to be established on 1st July 2021.
We have chosen Section 7 Shah Alam, Selangor as our place to open up our premise because
we believe Shah Alam is a famous place and quite strategic in Selangor and we would like to
take this opportunity to operate our business in this area.

Section 7 Shah Alam is our target place to operate our business. This location is
considered a strategic place because it is the most popular tourist spot in Malaysia. An example,
a famous and biggest mosque in Malaysia is located in Shah Alam, laman seni 7 and Skytrex
Adventure. We strongly believe that if we open our business in this area, we will be able to get
many customers domestically and internationally. We use “ScrunchieKit” as our business name
because we wanted to show that our business is selling various types of scrunchies with
multifunction. We are highly confident that our business will catch buyer’s attention because
of the uniqueness of our product.

The idea of this name came out as we want customers to feel life is easier when using
our product. Thus, this name is kind of catchy and easy to be remembered by all the customers.
With the slogan “A Scrunchie is always a good idea”, we intend to prove to the customers that
our business is providing them the best product with multifunction that will satisfy their needs
anywhere.

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 Organizational structure

Syarifah Nabilah
Binti Syed Hassan
Founder

Mohamad Sharol Bin Nurul Syafizah Bt Nurul Izzah bt Marsha Alya bt

Zainudin Mohd Ali Khasnan Mohamad Husni
General Manager Assistant Manager Financial Manager Marketing Manager

Amirul Aiman Intan Liyana

Worker 1 Worker 2

1.2 Problem Statement

Before our company decides to proceed with the opening of the premise or our physical
store, we will first identify and analyse what are the problems that the customers will be facing.
This method helps us to find the solutions in advance and we will try to improve our products
before proceeding to the opening. This strategy somehow will give us benefit in readiness for
any unwanted incidents or scenes at the opening. The common problem that every customer
will be facing is the limited parking slot at our stores and heavy traffic. As we all know, we
have chosen Shah Alam as our place for premise and Shah Alam is known and famous for bad
traffic. It is because too many people work at Shah Alam, the companies and factories also can
be seen anywhere in Shah Alam and that is one of the reasons for bad traffic in Shah Alam.
Customers might rant a little bit about the traffic and the crap of finding parking.

Other than that, the stitching of the product. One of the most common problems
customers will face is the packaging of the product in terms of stitching. A good and high
quality scrunchies will have very neat stitches. Besides, the picture in the catalogue must be
the same as the actual product that is showing to customers. The product must meet customers'
expectations in order to have them as our customers. Finally, the material that is used for the
scrunchies. Customers can touch and feel the materials that are used for our product when they
visit our store. The materials must fit their expectations and use high quality silk cloth because
they want to use the scrunchies for multipurpose and many times. So, the scrunchies must be
durable.

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1.3 Opportunity recognition

Based on the problems we mentioned above, we also come up with the best solution to
solve it. To prevent customers from having bad and heavy traffic at Shah Alam, we will start
to sell our product through an internet platform. Such as through social medias and our
websites. By doing that, our beloved customers don't have to waste their money for petrol to
go to our physical store and waste time in heavy traffic in Shah Alam. We will update
everything through our business platform. We will provide the catalogues and will provide
customer assistance to assist customers, to help answering the customer's question etc. Our
assistance also will make sure that all products are the same in reality as shown to customers
via catalogue. Besides, in order to have the best quality of our product, we will hire professional
workers to help us finish all the orders. Professional workers will notice if there is any dust,
dirt, or seams that aren't neat and will take that product out then make the new one. We want
to give the best product to our customers to satisfy their needs. We want to prevent any
inconvenience from happening to our customers.

Other than that, is the material we used for our products. Since we want to be a little bit
extraordinary than other competitors, we have decided to use the best material of satin silk so
that it won't make your skin feel irritated and it is gentle on your hair. The durability of the
product also has been tested because the product will be twisted, stretched, and bent so many
times by the customers when they use it. Simply put, we have studied and done some research
on the material so that we can fulfil the customers’ needs and receive loads of profit from it.
We will give our best to them.

1.4 SWOT analysis

SWOT analysis based on two competitors (Scrungie and Theuploft)

Strength

The strength of Sruncgie is that the business already known to public. The business has
already operated since July 5, 2020. Hence, this business has already made an engagement with
their customers. The business seems to receive any recommendation to improve their business

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to be better in future. They also respond to customer’s feedback in order to seal the relationship
with the customers. Up until now, the business has received many customers. This Scruncgie
produces a variety of products such as Headband, Hair pin, and the scrunchie itself. We can
see that the business is 100% handmade by the owner and didn’t have any worker. The
arrangement in the Scrungie’s Instagram feed also quite interesting and clear. It is one of the
reasons why people are attracted to the business.

The strength of Theuploft is similar to Scrungie but way better. Theuploft seems to have
more “follower” in their Instragram. Theuploft produce a more variety of product than
Scrungie. They have scrunchie, Eye mask, comb, pillowcase and also silk exfoliating mitt. It
can be seen also that Theuploft has more engagement with the customers than Scrungie.
Theuploft also has provide a website for the customer to make order from there too. Based on
the review made by customers, they said they really satisfied with the quality of the product.
No wonder that the Theuploft’s product are always sold out. The way this business decorates
their social medias platform and website is really cool and have exclusive looks that made
people are more interested in their products. This Theuploft started their business early than
Scrungie and they also have several more platform for marketing their products such as Twitter,
Facebook and Tiktok.

Weakness

As we all know, every good business/company must have their own weakness too. As
for Scrungie, they don’t serve any other platform to market their product which is just
Instagram. They don’t have websites and any other social medias. Meaning that, the customers
can only purchase this product through Instagram alone. It can be hard to customers who didn’t
have the apps. Next, the products of Scrungie is limited in terms of colour and product they
produce. They only produce like three products with few colours and it’s kind of hard for
customers to find other products in their business.

While as for Theuploft, one of their weakness is that they don’t really respond to the
customer. It can be seen at the comment section on the Instagram that the customers asking
something and didn’t get any respond until now. Thus, the products are limited in colours. It

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can be seen only for 3-5 colours and not more than that. Besides, Theuploft’s products are quite
pricey. Maybe some customer could not afford their products because too expensive. Any
products can look exclusive with low price but not to Theuploft.

Opportunities

For Scrungie, they are taking opportunities to expand the business by adding few
workers. By adding some worker, it will expand the number of products and they even can add
more new products or variety of colours. Next, they can upgrade their services by provide more
platform for customers such as Facebook, Twitter etc. It’ll make the purchasing process by
customers went more easier because they don’t have to purchase only through Instagram.

As for Theuploft, they can find another material that can be used but with cheaper price.
It is because their product’s prices are quite expensive to be compared with other business.
Then, they maybe can improve the various colour of the products. Since this product is known
well in Malaysia, they can start to open shipping to overseas. Hence their products will receive
more customers in future. Not to forget that they’ll get plenty income from it.

Threats

In order for Scruncgie to be ready for these potential threats to their business, they have
to identify what they are and how they can be threatened by the similar businesses. Every
business must have threats that will help them to improve services and products. Any weakness
they have can be the threats to their business as well. They must consider and accept any
recommendation and feedback from the customer in order to improve their business to be better
and less threats.

Theuploft is not the only business that provide others marketing platform as well such as
Twitter, Facebook and websites. Thus, there are many other competitors as well that produce
similar products like Theuploft but with way cheaper. It is a fact that Malaysian like cheap products
with high quality. Up until now, Theuploft still cannot beat Beannadotco. Any weakness they have
can be the threats to their business as well. They must consider and accept any recommendation
and feedback from the customer in order to improve their business to be better and less threats too.

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1.5 Purpose of business model canvas preparation

As we all know, in this new era of the business world a Business Model Canvas is the
most significant item that every organisation must know. Business Model Canvas (BMC) is
developed to plan for a business. The goal of the Business Model Canvas is to assist businesses
in designing their business processes, such as identifying resources, actions to be carried out,
relationships with other parties, costs, and sources of revenue.

The Business Model Canvas is ideal for small businesses like us that are just getting
started. This is because it can assist our company in correctly planning for the future in order
to avoid any negative effects. Apart from that, it assists us in identifying everything that will
have an impact on our firm in the future. Our company can see and predict the future course of
this company after going through the identification procedure. This orientation is critical since
it will determine whether or not our company can compete with other businesses in Malaysia
or around the world.

Our organisation can also use the business model canvas to improve the focus and
clarity of what we're aiming to accomplish. Customer segment, value propositions, channels,
customer interactions, income streams, key activities, key resources, key partnerships, and cost
structure are all parts of the Business Model Canvas. These factors must be included in the
Business Model Canvas since they will aid us in gaining a better knowledge of our organisation.

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2. BUSINESS PROPOSAL

2.1 Customer Segments

The definition of customer segmentation plays a very important role when it comes to
determining who the target customers are. The identification of this matter affects every single
decision that needs to be made by the business, be it for the purpose of advertising or even for
the presentation of a product. Our target market is specifically for women and from there we’ll
be breaking them down into 2 sections. Our products have the feminine side quality where the
usage of silk catches the attention of our customers. Considering hair, as the most precious
crown for a woman, we understood the importance and thus, the demand and market. Simply
put, every woman wants to feel confident, brilliant, and beautiful and that starts with
themselves. That is where we come in, we provide them with the best scrunchie in town and
on top of that, we added our personal touch by improving the design and allowing the product
to turn into a fabric mask that can be adjusted to our customers' liking.

First of all, our business focuses on delivering the best quality aimed for women.
Women are very particular when it comes to decision making, they will value each advantage
the product can benefit them and also the disadvantages. It is normal for customers to compare
between multiple products and at the end of the day they will decide with the best product there
is even though it is a bit expensive. They wouldn’t simply buy the product, according to
Marketing 101, there are few perspectives that will be taken into the equation such as quality,
the durability, performance or even the simplest reason as the product being presented in a very
astonishing manner. One of the benefits of having a woman on our side of targeted customers
is, when they have eyes for something, the idea of the product being stuck in one’s mind or
even in their wish list is highly possible and in the current era, these influences depend on the
performance of the business marketing itself. The better the promotion and the attractiveness
of an advertisement, the higher the possibility of potential customers. This goes back to the
ability of the marketing team in using the correct tools when handling the social media to our
advantage.

As of now, our main platform in introducing our business is through social media,
platforms like Facebook, Instagram, Twitter, TikTok and Shopee are our holy grail. Our

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customers are women with a social media account ranging from the age of 13 to 40. It is vital
for our business to recognize these potential customers precisely and understand their
perspective because each and every age has different needs, importance and way of thinking.
Only after identifying them, we would know exactly how to approach them using the correct
tool in advertising or promotion. For instance, teenagers are more attracted to shiny stuff, and
it is in their nature to compete and get their hands on rare and newly released products. This
will create a demand as most of them would want to make a purchase and lead their peers into
the same direction and create what we would normally call a new trend. Even the simplest
information is vital to ensure our business is driven into the desired or planned manner. That is
why, in order to understand and to promote our products, we need to get into our customers'
heads and understand how they think. It’s also a bonus point for us considering that most of us
in this team are female thus we use our own experience as leverage, to win the hearts of our
potential customers. However, when it comes to the adults, their consideration is completely
different. They value the presentation, the function and the durability of the product and in
what way could the product benefit them and only then they will come to a decision. Their
priority moves with age as they would choose a comfortable product over shiny one. All in all,
even though they value things differently from a different perspective, the two elements go
hand in hand and the fact that we’ve recognized it in advance, has helped us a lot in making
the correct moves in this market and treat it as a steppingstone.

In each business, the element that ensures the accomplishment of a company doesn’t
rely on a one-time customer; instead, it is heavily driven by returning customers. They are the
key component towards a stable revenue. If we provide them with excellent products and
service, they will always remember us, and our name will be the first to cross their mind when
it comes to getting a scrunchie. They trust us and understand that we care about establishing a
good customer relationship which will lead to loyal and repeating customers. Our scrunchie is
not just a regular hair tie but it’s a product where you could provide yourself with the adequate
amount of comfortability that you deserve while acting as an extra layer of protection.

What can they expect?

From a customer’s point of view, they would always want a trustworthy brand and like
we’ve previously stated, a brand that will give them the perception where all the benefit goes
to them. Their expectation is constantly changing, it would never be identical, especially as
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time goes by. As one good product comes along, there will always be another brand with
improvements and better designs. As we all know it is a very competitive market, there are
hundreds of businesses that are selling scrunchies just like us, but none of them are turning
them into a mask making our product to be innovative. At the end of the day, each customer
has their own preferences however, they all have something in common they all want a good
quality with good performance, attractive features, reliable, and durable. This is where we can
offer them all of that, our product uses the best material where it is soft, it won’t irritate your
skin and it is gentle on your hair. On top of that, even the characteristic of our material is soft,
the durability is highly impressive because it won’t tear easily, it could be twisted, bendable
and stretched however you want. All of these benefits with a very reasonable and affordable
price.

The fact that our material is both soft and rugged, is used as our key component or as
an attraction. When the scrunchie is stretched, both sides will become narrow forming into an
ear loophole while the middle part would be flat so that it could function as a mask on top. One
of the specialties of our design is, the size of the ear loophole could be manually adjusted
according to the person’s preference. While we understand that our customers come in different
sizes, face shapes, some wear hijabs and some don’t. Our design could offer them the comfort
that nobody can while still looking great and fashionable in them. It is important for us to serve
the best for our customer while making profit, however, as a start-up business we focus on
gaining followers and lovers and in this case, word of mouth plays a very important part in
growing our business. We want our name to be memorized and loved by our customers to a
point where they grow fond of us, and our products become a necessity in their daily life.

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2.2 Unique Value Proposition

The products offered by the business have distinctive features and are top notch
compared to other products in Malaysia’s market today. SrunchieKit provides a high-quality
product and ensures that every process that our customers go through from ordering right till
the delivering part, to be prompt, efficient and top notch. For instance, the material that we use
is from a high-quality fabric that can withstand pressure and is rugged. The ability of the
material to conform to the idea of being durable and soft at the same time guarantees that
SrunchieKit will win the hearts of thousands of women out there. Mentions are just one of the
specialties possessed by us, it is also a substantial requirement for our staff to be attentive as
possible to make sure that our customers feel welcomed.

● Provides a high-quality material for a reasonable and affordable price.

SrunchieKit provides high-quality products at a very reasonable rate. Some people would
compare our product with other brands however it is only because our design is carefully
curated to enable a regular scrunchie design to turn into a fully functioning fabric mask. We
prioritise comfort and want our customers to experience the best throughout the day. We also
use double ended hair ties that are durable, can be stretched in any way and adjustable. This is
to ensure that we could cater to every single size and the fact that we have identified the big
problem in most hair ties is the ability of it to be twisted normally only twice. By using this
special hair tie alike, we’ve prepared and tackled 2 things. Firstly, is guaranteed comfortability
when looping it as a hair tie up to 3 times, and also allowing the mask to be 100% adjustable
around the ear.

● Provides a 2 in 1 function.

The main idea and design were carefully drafted into making sure that the product will be
functional. As the first company to be releasing a new and improved plan, we’ll be patenting
the design. This is due to the fact that much research had been done in order to find the perfect
material that could concur to our expectation in delivering the best of the best for our customers.
During the process, we have gone through many obstacles as some materials were torn, some
were stretched making the scrunchie splintered and can only be used a few times. Our main
goal is to give to the public isn’t just to impress them, we want something that is durable,

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washable, and can be used again and again for as long as they like. It is only worth it when the
quality is at par with the price we’re offering.

● Provide individuality and adjustability.

When the word COVID-19 became a norm to us in the beginning of 2019, we’ve seen and
heard many complaints from people around the world regarding wearing a mask. With our
design, customers do not have to worry about anything when it comes to having the perfect and
comfortable size of the loophole of the mask. Not only is it washable but it is also adjustable
so that they could decide which and how they would wear it around their ears. This is definitely
one of the advantages that could draw customers to us because each customer has their own
preferences, while Hijabsters feel comfortable in a head loop mask and others prefer loophole
masks. People are starting to accept the fact that we’ll be wearing masks for a long time. Thus,
feeling comfortable while covering up is the key ingredient. Our design is also evergreen, once
COVID-19 is done and the world is free again, our customers can use it solely as a hair tie,
which shows that this scrunchie will be used in their daily life one way or another.

● Reusable while still maintaining the quality.

One of our specialties is, our scrunchie could be washed over and over again countless
times while still providing the same quality as the first time it was used. The material could be
washed by hand or simply by throwing it in the washing machine. However, it must be put in
a washing net to ensure that the shape would stay the same and not be affected by other rough
clothes. It is also up to the user to use whichever detergent or softener they want. If they want
it to have some fragrance after washing, they could add more softener during rinsing.

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2.3 Channels

SrunchieKit were a pre-order product because we handmade it, thus taking some time
to complete the orders. All businesses either small or bigger businesses which involve imports
and exports, are really concerned about the perfect channel to deliver the products offered.
Promoting the products is the key for a business to be well-known by people and can even be
worldwide therefore the marketing team usually has provided a brilliant strategy to do so. As
we could look up to a larger business in Malaysia, Anas Cosmetic, a local makeup brand
founded by Anas Zahrin uses instafamous as their products model, as we could see instafamous
could attract the target customer due to their huge followers in IG.

• Social Media

Same goes to our business, we really concern the well-perfect strategy to promote our
products thus could attract a larger number of customers. We concentrate on promoting all the
products on the social media platform, Instagram and Facebook. Lately, many businesses using
those platforms include Facebook, Twitter and even Tik Tok to promote their products. Our
business will keep posting any content related to our products regularly at our main IG for
every 2 days. Content in our IG posting could be any image of scrunchies, include the details
or even we could post the video of completing the orders. In our IG account we will target
younger customers where they could gift their friends or their partners with our scrunchies.

Therefore, ScrunchieKit uses Instagram to keep posting our products and build
relationships with the customers. Furthermore, our official Instagram account has all the further
details for each of our products including the price, the colour of scrunchies offered and a
WhatsApp link for the customer to make any inquiries. The customers are pleased to make
purchases by WhatsApp our business number as it is easier for us to arrange delivery to your
doorstep. Any purchases or inquiries made by DM-ing us might be we overlooked the DM’s
and the customers feel frustrated. Thus, ScrunchieKit really appreciates every purchase or
inquiries made by WhatsApp us.

Same goes to our Facebook account, ScrunhieKit will keep updating our products and
we will focus more on online marketing using Facebook. Facebook is a more effective way to
do online marketing as it has a lot of users from all ages. ScrunhieKit will advertise and do

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marketing of our business by spreading posters to random Facebook users. By doing this, they
will know our business existence and get interested in our products. We limit on conventional
marketing as it is not suitable in this pandemic.

• Physical store

Customers will get easily bored if we keep posting our products or any content related
to business in our Instagram account thus it is preferable for us, ScrunchieKit posting any
content or picture of our products once in 2 days. ScrunchieKit could post motivational words
in our Instagram account every morning as it would make the customer feel connected with us.
Therefore, we really preferred our customers to just walk-in in our physical store and make
purchases of our scrunchies. In this pandemic COVID-19, it might be difficult for the customers
to come into our store thus they could just contact us by WhatsApp our business number to
make delivery to their doorstep.

People are advised by the government to limit their movement as if it is not an important
or urgent matter. We are also strictly concerned about this and the customer who wants to walk-
in our store must make an appointment at least 1 day before. By walk-in our store, the
customers could touch our scrunchies material because some people want to touch and look
face to face before buying things like clothes or pants. In our store, there are various colours of
our scrunchies being displayed and the customer could choose the scrunchies that suit their
taste and favourite colour.

• Online platforms

Nowadays, we can shop online by using mobile apps such as Shopee, Lazada, Zalora
and more. Using those platforms are more effective for any businesses to get more sales and
profit. ScrunchieKit could also be found in the Shopee app and Lazada which gives us huge
opportunities to be widely known in Malaysia. Sometimes the consumer most preferred to buy
things at the Shopee app as it is easy from the process of the payment to the shipment status at
the app. Other than that, Shopee app usually give free shipping voucher whenever there are
flash sales for every month, and this benefits the customer as the can save on the delivery
charges. Anyone who wants to buy our scrunchie can easily search “SrunchieKitOfficial” and
choose their scrunchie to buy.

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2.4 Customer Relationships

For a small business customer relationship was very important as that way they could
keep connected with their regular customers and make profit. The customers somehow could
repeatedly buy our products as they get attracted to our promoting posting or they feel satisfied
with how we get connected with them even after buying.

● Faster Service

First thing to ensure our customer relationship is going well, ScrunchieKit tries to
complete all the orders as fast as we can. Our scrunchies were handmade between one week,
thus maximum days that we could complete the orders were 3 days. We are really trying hard
to fulfill the orders in a faster time, but we only have a small team consisting of 5 people. We
all know that the customers have 1001 characters which sometimes it is tiring for sellers like
us to handle and just ignore. Some customers could appreciate our effort even though it took a
longer time to fulfill their orders and otherwise we are trying to maximise our scrunchies stock
in our store as well. The customer will definitely feel good whenever their purchases arrive in
a short time as they don't have to wait. Therefore, we could promise that we would be able to
fulfill all the scrunchies orders within 3 days or even quicker than that.

● Personal Assistance

Furthermore, we have our official Instagram account and thus it is one of good
platforms for us to build relationships with our customers. Even if we are not posting our
business content at our official Instagram account every day, we must make sure that our
businesses are alive by keeping DM’s all the followers and our regular customers. We could
promote our scrunchies by DM-ing them and even keep updating if there are any discounts or
promotions for our scrunchies. By doing this, we could make some of them get attracted to our
scrunchies and repeat buy our scrunchies because of our great customer service.

Other than that, we keep maintaining our momentum to post any image or content that
relates to our scrunchies business in order to build our customer’s trust and do purchases
without feeling suspicious or worried. People will be able to trust us and purchase our
scrunchies when we keep sharing previous customer feedback on our scrunchies. Customer
feedback was really important for our business as that feedback could make us do some
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improvements on the materials of the scrunchies or the packaging of our scrunchies. As we all
know, if a business has 0 customer feedback, it is difficult to gain people's trust because
nowadays there are a lot of scammers with various tactics to scam people even in food
businesses.

● Customer Service

Next, great customer service could be a key for a successful business. Every business
could have their ups and downs in this retail industry. It can be that there are some problems
during sale of our scrunchies or even could be a problem in online purchasing or at our physical
store. In this situation, the customers should relax as we have a professional team to counter
those problems. The customers will instantly be able to purchase our scrunchies smoothly
without any problems in future. Other than that, in this era there are many channels to express
their problems in our business or their dissatisfaction with our system such as by emailing us
or contacting us. Therefore, our team will try to get back to the customers within 30 minutes
from their email to solve their problems. By doing this, customers will be really satisfied with
our quick solution.

● Co-Creation

Moreover, ScruchieKit really wants to make a design for scrunchies that fits the taste
and needs of customers. Any business should hear what the customer feels about our products,
if it suits their taste and if they really like it. Till now, changes that we make into the scrunchies
is that we innovate it to be a mask. It sounds weird and confused on how we turn original
scrunchies to a mask that is really usable in this pandemic. Nowadays, double masking is really
preferred by the doctors which is the combination of a 3ply mask with a fabric cloth mask.
Therefore, ScrunchieKit produces a 2in1 scrunchie which is scrunchies that can be used as a
mask too. ScrunchieKit is always open to any customers that are willing to give any ideas or
any that they would like to brainstorm for our future scrunchies. By this way, we could establish
a mutual relationship between customers and ScrunchieKit.

● Self-Service

Lastly, in our physical store, ScrunchieKit gives time to the customers who walk-in
choose their preferred scrunchies before making a purchase. We don't follow the customer in
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the meantime they are thinking of buying our scrunchies as it might be uncomfortable to some
customers. Some stores in Malaysia, the worker is likely to follow the customers at all times
whenever it takes time to choose and think. It is true as a worker we have to persuade the
customers to buy our products in order to increase our sales but to some people that is
unnecessary to do as they want to shop peacefully. Thus, we are really concerned when the
customer should be peaceful when making purchases by not following around them.

2.5 Revenue Streams

Revenue streams is the source from which income of the business can be earned through
each customer segment. Most businesses need at least one strong revenue stream to earn
money. For example, Netflix is getting their income based on monthly subscriptions from their
subscribers even if the customer didn't watch it, the fee is still charged monthly unless the
customer stops subscribing. Since our business is small, there are many different ways it can
be used for our business. There are several paths of revenue stream that can profit our business.

● Direct physical store sales

The direct sales revenue will come from our physical stores in Shah Alam and
transaction-based revenue. Usually, this type of revenue stream only involves one-time
customer payments. Customers will walk-in to our physical stores and make a purchase
directly. We accept any transaction form of money during the buying and selling in our store
including in cash form, online transaction and e-wallet. We are also going cashless as nowadays
people prefer to have a cashless transaction and provide a QR code for payment to ease the
transaction of money especially in this pandemic.

● Online sales

Our sales revenue also counts from online sales. Especially during this pandemic,
people prefer to buy things through online platforms. We are selling our products through social
media platforms such as Instagram, Facebook and Twitter. We will put online advertisements
through social media platforms and interested buyers will directly go to our profile for more
information. The customer who came from social media will either click on the link of our

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website to self-purchase or the Whatsapp link to be assisted by our agent in the account’s
profile. We also provide other online platforms for the customer to self-purchase in Shopee and
Lazada.

● Online Campaign

In this pandemic, we decided to take the opportunity for a “Safe Double Protection”
online campaign. This campaign will be promoted by ourselves on social media platforms.
Since KKM has ordered us to double-masking the 3ply surgical mask and a fabric mask when
we go outside, we decided to promote our scrunchies with a 5% off discount to our target
market. They have to subscribe to our website for the 5% off discount voucher that can be used
in Shopee and Lazada platforms as well as our online website.

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2.6 Key Activities

The key activities are the most important strategic things you must do to make the
business model work. Key activities are any activities in your business that are involved for the
primary purposes of making a profit. These activities consist of operations, marketing,
production, administration, and problem-solving which can ease the customer to have a deal
with our products in the future. For example, if you were to go for holiday, what would your
replacement need to do for things to continue to run smoothly. These might include sales calls,
workshop delivery, meal preparation or writing reports. This indicates that key activities are
very crucial for the preparation of our business operation in order to run smoothly despite the
circumstances.

There are four key activities that our business needs to run steadily. The first key
activities are scrunchies preparations. As we need to run the business, we are going to need the
material for our scrunchies. A scrunchie is a fabric elastic hair band used to tie short to medium
or long hoar types. Thus, we are going to have scrunchies preparations as our main activities
in our business. In these activities, we need tailors that are specialists in making a scrunchy to
make the best one product offered to our beloved customers in the future. There are a lot of
tailors out there but yet we decided to choose the best and skilful ones to make our scrunchies
in the best form. Since our business is focusing on producing scrunchies, we need to find tailors
that have a lot of experience in making scrunchies instead of finding a tailor that is making
outfits. These first activities are the most important part as without it, the production of
scrunchies cannot exist at all.

Next, moving on to the second key activity which is the execution of selling scrunchies
in the market. As stated before, we run a business that involves selling a hair band which can
be specified as scrunchies. So, our business focuses on producing scrunchies that are covered
by a satin type of material. There are a lot of scrunchies out there, but what makes our products
different is the choices of material. For example, there are fabric scrunchies, bead crochet
scrunchies, slip scrunchies and others, these types of scrunchies do not suit our goals and
objective of producing these products. As stated before, our objectives are to produce
scrunchies that are comfortable and at the same time could prevent frizz for hair, especially for
curly and coily type of hairs. That is the reason why we decided to sell our scrunchies that are

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made from satin which can give benefits for our customers in the aspect of health hair care.
Here we would like to restate that selling scrunchies that are made from satin is the second
activity in our business proposal activity.

The third key activity that our business does is delivery. During this era of pandemic of
Coronavirus 2019 (COVID 19), under the instruction of Malaysia Government, we need to stay
at home under Movement Control Order (MCO), thus the people in Malaysia are not allowed
to go outside with the purposes to stop the chain of virus towards the Malaysian. But this is not
going to stop us from expanding our business activity at all. In Malaysia, the efficiency of
courier has been increasing enormously with the advancement of interphase on the applications
itself. Furthermore, people are also starting to work from home (WFH) and this can be seen as
our opportunity or chances to provide them with delivery services for our products. Not only
that, but people also especially the younger generation prefer an online transaction rather than
using a traditional transaction which at the same time can ease themselves to make a transaction
without having to involve in any risk and hassle out there. There are a lot of couriers online
provided such as GoGet, Grab, Bungkusit, and others which have made online business to
perform better during this pandemic. Thus, we would like to state that our business of selling
scrunchies will be conducted by delivery services during this pandemic situation in Malaysia.

The last one would be customer relationship and support. After the execution of selling
and delivery, one of the most important elements is to maintain our relationship with our
customers. Customers are everything towards an entrepreneur, without them, there will be no
sales, profit, marketing reaction and others. How should we maintain our relationship with our
customer? We provide a review and a comment space for them to evaluate and comment about
our products, the efficiency of our services, and even our rating as a seller. All of those
comments that are posted, we will not take it lightly but yet we will improve ourselves in order
to become the favourite scrunchies seller or business among the customers. For example, we
would take action if one of our customers is allergic to our type of material used for their
scrunchies by asking them their allergy towards a satin type of clothes. In our businesses, we
are not only concerned about our profit, but we are also concerned about the customers' health
care because they are our responsibility in the future.

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2.7 Key Resources

Key resources are directly relevant to the number and type of key activities for our
company to engage in. Usually, it is based on the number of tangible and intangible resources.
Every business model needs them in order to produce the finished products, and it is only
through them that a business generates value and revenue propositions. The quality of key
resources will affect a company’s performance and profitability. Key resources that we are
using can be divided into three categories which are physical resources, human resources
(workforce), and financial resources.

Currently, our business has implemented all of these four key resources. Let's start off
with the first key resources, physical resources. Physical resources can be referred to tangible
assets that a company utilizes to create a value proposition which indirectly will have a long
term effect towards the business. Thus, we would like to open an office which is very efficient
for all of us to work properly and operate which as well consists of a complete equipment such
as tables, chairs, racks, and even pantry to make our things to be executed easier.

We also need specialized production facilities such as building, sewing machines,

vehicles, equipment and others. With all of these resources, our business could operate easily
and well-organized which at the same time could create a positive vibe and happy environment
towards our workers. The implications of not having a sufficient number of physical resources
would affect our business in a large scale of risk such as long-term bankruptcy, bad perception
from people about our business, poor administrative system, and a lot of flaws.

Next, the most significant resources that our business needs are human resources.
Human resources can be simply defined as workers who are in charge of the operation of a
company which consist of internal and external activities. Employees are one of the
organization’s most essential and yet the most easily overlooked assets. They are also in charge
of interacting with our customers, help in growing the company and maintain the knowledge
and experience that are gained.

For example, human resources include staff consisting for office management, an
expert or specialist tailor, cashier, cleaner, inspection teams and other categories as well. This
needs to exist in our company or business in order to make our business more organised,

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efficient time management, an increased number of production and at the same time can
maintain our product’s quality despite the unpredictable economic performance in our country,
Malaysia. These people (precisely workers) should have a good environment and work together
in order to meet our variety of customer satisfaction.

Thirdly, in terms of financial resources, money becomes a critical resource in every

business. We need capital to start our business since we need to buy things that will help our
business on the ground. This includes some cash and lines of credit. For example, our business
needs to buy all of the raw material needed to produce all of our scrunchies. Not only that, our
scrunchies are not going to be produced one by one, instead it will be produced in a large
number which means we will need to buy all of these materials in bulk. On the other hand, we
also need money or capital to pay employees’ salaries and other business expenses such as
travel, insurance protection, advertising expenses and other expenses which will contribute to
our company’s performance directly or indirectly in the future.

2.8 Key Partnerships

Key partnerships or business partnerships are the relationships that you have with other
business, governmental, or non-consumer entities that help your business model work. Such
relationships that we would definitely develop, would help our company thrive in the areas that
are important, but we are not available to do it by ourselves.

The major key partnership that our business uses is the buyer-supplier type of
partnership. It will enable us to provide our company with a credible and systematic source of
supplies. For example, our company runs a scrunchies business thus we need a lot of clothes
material such as satin, needle, tie band, thread, and even some machines as well. Hence, we
find suppliers that provide these kinds of material that suit our requirements for our products.

Not only that, since we are going to need these materials in bulk, we will get cheaper
prices by buying those. On the other hand, indirectly it may save some time for us because the
supplier usually will provide a service for delivering the products. In order to produce a fine
and good quality of products for our business, we emphasize the quality of the raw materials
to be in good condition and safe to use.

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2.9 Cost Structure

Cost structure incurred all the cost and expenses that will be borne by our scrunchies
business during the operation. The purpose of doing the cost structure is to make sure we see
where the money was spent and how we’re going to use the money for. ScrunchieKit has listed
down some of the costs and expenses that involve this business. There are few cost structures
including the salaries of the workers, the cost of raw material for the Scrunchie, the other cost
and expenses such as rental of the premise, the utility, the marketing advertisement for the
product, etc.

Firstly, the salary of the workers involved in this business. The amount of the salary is
expenses but also an investment for the business as we hope by the salary given, we get the
outcome that we need from all the workers in order to make sure our business runs smoothly
and successfully. Our premise requires 2 people to handle the transaction of the product as well
as taking care of the premise.

Position No of Basic EPF SOCSO TOTAL OF

worker Salary 12% 2.5% MONTHLY
(RM) (RM) (RM) SALARY (RM)

1 2500 300 62.50 2862.50

General Manager

1 2000 240 50 2290.00

Assistant Manager

1 2000 240 50 2290.00

Finance Manager

1 2000 240 50 2290.00

Marketing Manager

Staff 2 3400 408 85 3893

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 Secondly, we need to pay for our rental cost as well as utility cost every month to the
owner. We pay for bills of water, electricity, telephone and internet. The cost of utilities for
telephone bills, cost of maintenance and internet used are fixed every month. Meanwhile, the
bills of electricity and water supply to our premises are changing according to our needs.

Costs / Expenses The average amount of expenses

Rental of the premise 1000

Electricity bills 250

Water bills 100

Telephone bills 80

Internet bills 120

Cost of maintenance 500

Cost of advertisement in social media 300

Next is the cost of machinery and raw material of the business. Since the products are
all handmade, we decided to have 2 sewing machines for 2 workers including the founder and
another staff as it will help us to sew the scrunchie faster than sew it by hand. The average time
taken to sew 1 scrunchie usually takes a few hours to finish 1. By using the machine, we manage
to cut the time taken by producing 15+ scrunchies for a day. The amount of money spent for
raw materials is fixed every month as we limit the production according to the ability of the
workforce.

We also provide the delivery service of the product to the customer's door when there
are many orders from the place nearest to us. We understand the customer’s concern for not
going to only buy our ScrunchiesKit especially in this pandemic. The cost involved in this
delivery service is the cost of fuel and the maintenance of the motorcycle once in two months.
In order to provide the best delivery service, we have to make sure the vehicles are always in a
good condition.

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3. CONCLUSION

In sum, ScrunchieKit is able to be a successful business and there are some investors
that are likely to invest or collaborate with us. It is true that nowadays there are various
platforms that sell too many scrunchies but however, the demand for satin scrunchies is still
high. The demand is still higher because satin scrunchies benefit our hair and prevent hair loss.
We are creating new innovation to our scrunchie as our scrunchie could be transformed to a
mask. Masks are really essential nowadays to prevent from Covid-19.

Definitely, in this pandemic, our store will be inconsistent in opening and closing for a
while as we followed government rules. However, ScrunhieKit is really active in our social
media account thus any problem or complaints regarding our scrunchie, the customer can freely
DM-ing us and hope they will not spread hate to other people for our business. Our team will
ensure customers feel happy during their purchases and also after getting their scrunchies.
ScruchieKit is really concerned about the customer’s feedback on our services and products.

However, ScrunchieKit as a team has put much effort in this business from zero to
become a bigger company in future. We put our trusts and 200% effort to make this business
sustain from the first it is.

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4. APPENDICES

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5. REFERENCES
Corporate Finance Institute. (2021, January 2). Revenue Streams.

https://corporatefinanceinstitute.com/resources/knowledge/accounting/revenue-streams/

Ashton, M. (2018, MAY 7). Business Model Canvas. ASHTON MCGILL.

https://www.ashtonmcgill.com/introducing-business-model-canvas-customer-relationships-

channels/

Business Model: Distribution channels. (2016). empower women.

https://www.empowerwomen.org/en/ilearn/my-courses/business-development/business-

model/business-model-distribution-channels

KRZYSZTOF, J. (2015, FEBRUARY 3). Divante Value, Channel and User in Business Model

Canvas ECOMMERCE UX Value, Channel and User in Business Model Canvas. divante.

https://www.divante.com/blog/value-channel-user-business-model-canvas

Scrungie (https://www.instagram.com/schrungie/)

Theuploft (https://theuploft.com/)

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