Business Plan
Business Plan
BUSINESS PLAN
PREPARED BY
FACULTY & PROGRAMME : -Diploma in Food Technology (AS116)
-Diploma in Microbiology (AS118)
SEMESTER :5
PREPARED FOR
Madam Nur Syahira Binti Abd Latif
SUBMISSION DATE
22/12/2017
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1.0 INTRODUCTION
Malaysia, a country full of diversity. We are well known in the eyes of the world not
just because of our uniqueness in multiracial, religions and cultures, but also because of the
richness in our flora and fauna. Flora and fauna are one of the greatest gifts by god. It gave us
life and thought us to be grateful. Despite having all sorts of uniqueness points, we would like
to highlights the flora as our core business project which is fruits and to be more specific, we
are attracted to one of the famous fruits in the world which is coconut. Coconut is not just an
ordinary fruits; we can extract it to produce oil - virgin coconut oil. It contains numerous
benefits for us than anyone can imagine, from the deepest part of our body until the most
outer layer of our skin.
Therefore, in correlation with the idea of the business, we came to an idea to build our
own company called HARAFIEE COCONUT ENTERPRISE, a combination name of our
group members. With the existence of the company, we would like to be the biggest supplier
of virgin coconut oil around the world and to be the consultant to the public about the benefit
of virgin coconut oil.
In Malaysia, there are hundreds and thousands of health product. It came from the
very far place from the world, until us ourselves the local itself. Health product have various
kind of type depend on the originality of the product. Examples, some maybe suitable for our
skin, hair, inner body and many more. As we Harafiee Coconut Enterprise, we are in the
world of virgin coconut oil industry. Virgin coconut oil industry always have high demand in
the market as it is suitable for health, beauty care and 100 percent organic product. When it
comes to beauty, people would sacrifice a lot of things to fulfil their desire. Therefore, virgin
coconut oil industry is one of industry that will always rise through-out the world and it also
is a profitable industry as it fulfil our market demand.
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1.4 Location of business
Following this, the location of our business covered around the capital city of
Malaysia which is Kuala Lumpur and our headquarters are located in Ampang. The main
reason why Kuala Lumpur was chosen as our business location was due to it being the centre
of business transactions and tourists’ attraction. Furthermore, the abundance of convenient
facilities i.e. ease-of-access public transportation. Point of supply for our products would not
just be in retail stores or stand-alone spa, pharmacies and hotels are also in our supply list. In
Kuala Lumpur, hotels only are around 1,235 hotels; these together with all other supply
options would bring forward our products to the eyes of the user, creating our own name as
the major supplier.
We had just started our operation one year ago on 5th April 2016.
One of the factors for us to choose this as our business because Malaysian people
really love foods. On top of that, we would love to see one day, virgin coconut oil will be
commercialize same as other oils in the market now. We are still new in the business world
hence; the numerous benefits of virgin coconut oil are still unknown to many people. Here,
some of the benefits of Virgin Coconut oil are it can boost our brain function, moisturize our
skin, improves blood cholesterol, slimming the body, increase cell generation and countless
more of the benefits.
In future, our business prospect we are expecting to be one of the virgin coconut oil
suppliers to other Asian countries. For centuries, country like China, they are still applying
traditional treatment, due to that, it will be such a great opportunity for us to expand our
business not only for local but also international. This opportunity also would be stepping
stones for us to be better and known in the future as we are providing healthy and organic
product. Our main reason also was to ensure that, virgin coconut oil would be the biggest
market sale of oil used in the market.
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2.0 Purpose of preparing a business plan
Lastly, to convince relevant parties of the investment potential in the project. A business plan
acts as a communicative tool for an entrepreneur to explain a particular business project to
other people. By having a proper document, it is easier to attract the interest of the investor to
finance the project. As a whole, the business plan will represent the entrepreneur in
convincing the investor towards providing fund for the business. A business plan is used to
attract capital investment, secure loans, and assist in attracting strategic business partners. For
example, this business plan is prepared by Eleven N’s Sdn Bhd for the purpose of convincing
the viability of the proposed venture to potential investors.
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3.0 Company Background
Registration number
3.8 Name of bank Bank Islam
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4.1 Personal particulars of owner
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Co-founder/Financial Manager
Name Muhammad Syarafuddin Bin Abdul Shukor
Identity card number 961219-14-6059
Permanent address No. 18 Jalan Au 1a/3A Taman Keramat Permai 54200, Wilayah
Persekutuan, Kuala Lumpur
Correspondent address 5, Jalan Page Ukay Heights, 68000 Ampang Selangor Malaysia
E-mail address [email protected]
Telephone number 0193264029
Date of birth 12th Disember 1996
Age 27 years old
Marital status Married
Academic qualification Diploma in Food Technology
Skills - Tracking Budget Expense
- Computer skills
- Good in accounting management
- Ability to auditing the financial management
Experience Financial Assistant Manager at Al-Hadramaut Food Enterprise
Present occupation Financial Manager of HARAFIEE COCONUT ENTERPRISEE
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Co-Founder/Operational Manager
Name Mohamad Shafiee bin Mohammad Kamal Wong
Identity card number 950401145399
Permanent address Jalan Sikamat, No 14 Lorong 11 Taman Sikamat, 70400
Seremban, Negeri Sembilan
Correspondent address
E-mail address [email protected]
Telephone number 0111234987
Date of birth 01/04/1995
Age 22
Marital status Single
Academic qualification Diploma in Computer Science
Skills Photo editing (Photoshop)
Video editing (Adobe Premier, Davinci Resolve)
Basic task (Word, Excel, Publisher, Power Point)
Basic programming (JAVA, C++)
Experience Senior Officer at SA Agro Sdn Bhd
Present occupation CEO/Operation Manager at Harafiee Coconut Enterprise
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5.0 Background of purpose project
68000 Ampang
Malaysia.
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5.2 Price of premise
The capital will be bought from our own financial manager Mr Syarafuddin bin
Abdul Shukor at the price of RM 35,000. The building will be built within 2 months
in the year of 2016 with the price of RM 30.000 (refer diagram 5.2.1).
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5.3 Distance from the sources of raw material
Our main supplier of the virgin coconut oil is the SMN Global Marketing located at
Taman Puteri Wangsa, Ulu Tiram, Johor (refer diagram 5.3.1). The distance between
HARAFIEE Coconut Enterprise and the supplier of raw virgin coconut oil, SMN Global
Marketing is around 339 km or 3 hours and 34 minutes’ drive via the Utara-Selatan Plus
Highway
Johor
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5.4 Availability of manpower
Since this business involve in food handling, we obtain manpower from the International
Malaysia Training Centre in Kuala Lumpur to maintain the best quality of the virgin
coconut oils (refer table 5.4.1). Skilful manpower also needed to reduce the accident that
can happened due to negligence during the work flow.
Customers can reach our premise by bus, taxi and LRT. The location of our premise also
near to the MRR2 highway providing a direct route for the supplier to deliver the raw
materials (refer diagram 5.5.1).
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5.6 Distance from customer
Our company is located around 10 kilometre from the nearest hotel, spa and pharmacy
which make any business meeting or customer services easier (refer diagram 5.6.1). The
company also located around 500 meters to the nearest housing area which make it is
very easy to frequent.
Diagram 5.6.1 Distance between Bukit Bintang and HARAFIEE Coconut Enterprise
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5.7 Basic amenities
Our office is complete with water and electrical supplies, internet connection, and
telephone lines to enable the work flow is undisturbed and the communication between
our company and the customer is as easy as possible through online services. This basic
amenity is provided in order for all workers to perform and accomplish their jobs more
efficient and productive. The electrical power will be supplied by the Tenaga Nasional
Berhad (refer diagram 5.7.1) while the water supplies will be provided by Syarikat
Bekalan Air Selangor Sdn Bhd (refer diagram 5.7.2). The telephone line and internet
service will be provided by Telekom Malaysia Berhad (refer diagram 5.7.3).
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6.1 Organization’s mission, vision and objectives
Table 6.1.1: Logo, vision, mission and objectives of HARAFIEE Coconut Enterprise
Logo of the business
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6.2 Organizational Chart
CEO/FOUNDER
Muhammad Hail Haris Bin
Muhammad Hakim
Worker/Clerk
Worker/Clerk
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6.4 Schedule of task and responsibilities
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6.5 Remuneration plan
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6.7 List of office equipment and supplies
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6.8 Administrative budget
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7.1 Description of product and services
Virgin coconut oil is the oil extracted from a mature coconut by a special process
which does not disrupt or destroy the original structure and nutrient content of the natural oil
contain in the coconut. The process does not involve chemical and heat usage as it can
destroy or lower the quality of the oil content in the coconut. There are at least 9 medium
chain fatty acids contained in the coconut oil that are essential for human health such as oleic
acid, decanoic acid, linoleic and many more. Virgin coconut oil is scientifically proven good
for health for all ages either babies, old folks, man and also women. The main advantage of
virgin coconut oil is it use 100% natural materials and resource which is very good to be
taken as supplement especially for the skin. Virgin coconut oil can be use in various ways
mainly as lotion or can also be taken orally. Due to its versatility, virgin coconut oil has a
very high potential to become as one of the most use or taken supplement in the world.
In Malaysia the demand for virgin coconut oil is very high and this provide a
profitable market and business for Malaysian to get involve in. Right now the biggest
production country for virgin coconut oil is Taiwan and India because they have a large
supply of coconut and man power to be able to supply virgin coconut oil worldwide.
Compare to Malaysia, we also produce virgin coconut oil but mainly target only the domestic
target. Thus we as one of the company who supply virgin coconut oil are aiming to export our
product mainly in the domestic market but also the world market.
Our company provide 4 choice of virgin coconut oil that are in 50 ml, 150 ml, 250 ml
and also in litres for those who need to buy in bulk quantities. The 50ml or travellers size
virgin coconut oil bottle is aim for people who always traveling. This is because travellers
usually has a very limited storage space thus a smaller bottle helps them reduce the space
taken from a bigger bottle. A smaller size bottle also makes the usability of the coconut oil
easier as customer can bring the virgin coconut oil anywhere and use it when needed without
needing to hold the bigger bottle everywhere the customer went. This provide an ease of
usability to customer who are travelling or need to use the virgin coconut oil in an
emergency.
For the 150ml virgin coconut oil bottle or known as the personal size, it aims toward
the personal space usage such as at home and office. When customer is not travelling, at work
or at home, the personal size is more suitable as it provides more quantities of virgin coconut
oil to be use. The bottle can be store at the office as it does not take up large space for
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example store at the drawer of the office table or just leave it on the table. For personal use
the quantities are enough to last for a long time compare to the traveller size which is
relatively small.
For those people who need to share the virgin coconut oil with family or friends, the
250ml family size bottle is suitable as is provide a lot of virgin coconut oil to be use and
share. The family size is the largest bottle sold by our company. This size is aim for the
household use as it come in a large size and need to be store properly to maintain it highest
quality as it usually last for a very long time. This size also aims toward customer who use
the virgin coconut oil orally as this type of application need to higher amount compare to
those who use is a lotion.
Not to be forget for business or company who need the virgin coconut oil in large
quantities such as restaurant and spa, our company also provide virgin coconut oils in litres.
This provide a solution for them from needing to buy the virgin coconut oil by bottles as it
will cause higher price and storage problem. As larger company usually use the virgin
coconut oil in large quantities at a time, we provide a storage container suitable to the
demand of the company to ensure the virgin coconut oil is not contaminated and able to
maintain it highest quality.
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7.2 Target Market
Target Marketing involves breaking a market into segments and then concentrating your
marketing efforts on one or a few key segments consisting of the customers whose needs and
desires most closely match your product or service offerings. It can be the key to attracting
new business, increasing your sales, and making your business a success. The beauty of
target marketing is that by aiming your marketing efforts at specific groups of consumers it
makes the promotion, pricing, and distribution of your products and/or services easier and
more cost-effective.
Geography:
1. Country
- Taiwan and China have high demand of virgin coconut oil due to their geography
which does not allow all the growth of coconut tree
2. District
- Area around Bukit Bintang have many spa and hotel which provide vast
marketing opportunities
Demographic:
1. Occupation
- Public figure such as models, singer, artist who show case themselves to the
public need product to maintain their appearance and health
2. Social class
- The product is aim toward the upper class society because our product is classed
as premium health product to high price to maintain the high quality
Psychographic:
1. Preference
- Some customers demand virgin coconut oil product that is odourless and
colourless due to ease of use and for self-comfort
2. Sensitivity to price
- Customer who regularly buy virgin coconut oil know that good quality is hard to
obtain thus high price virgin coconut oils will ensure the good quality of the
3. Motives of purchase
- Many customer now concern about maintaining their wellness and beauty
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7.3 Market Size
Market size in the number of individuals in a certain market who are potential buyers and/or
sellers of a product or service. Every company must be interested in knowing the market size
before launching a new product or service in that specific area. Analysing the market size is
very important to estimate the market share and ensure the marketing is well planned. The
market share is often quoted in unit of sales or Ringgit for specific period e.g. daily, weekly,
monthly or yearly.
Harafiee coconut enterprise is aiming to be one of the biggest distributer of Virgin Coconut
Oil or known to be called Cocogin in Kuala Lumpur and Selangor area. It is known that our
operation took place at Ampang, Selangor and Bukit Bintang. According to the department of
statistic Malaysia, Selangor has a population of 574,300 while Bukit Bintang has a population
of 742,200 people approximately. We also supply our virgin coconut oil to hotels nearby for
their spa treatment, pharmacies and also herbal shop. It is stated that there are 30 hotels, 20
pharmacies and 10 herbal shops in Selangor while in Bukit Bintang there are 720 hotels, 30
pharmacies and 20 herbal shops. Considering every aspect that we offer, we have targeted
40% from the total population of people also hotels and shops that we can supply for
Selangor and Kuala Lumpur and we narrow it down to Ampang and Bukit Bintang.
With this evaluation, we assumed 1 082 265 of people will be our potential customers in a
month. Our product have 3 ranges of quantity which is 50ml, 150ml and 250ml. For the
quantity of 50ml, 150ml and 250 ml is targeted for families, pharmacies, herbal shop and also
hotels and spa.
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× 830 = 581 𝑢𝑛𝑖𝑡
Hotels spa, pharmacies and herbal 100
shops located in Ampang, Selangor +
Bukit Bintang Kuala Lumpur = 830
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× 649,359 = 259,744 𝑝𝑒𝑜𝑝𝑙𝑒
100
*40% from the population/units willing 40
× 581 = 232 𝑢𝑛𝑖𝑡
to buy the Virgin Coconut Oil 100
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Estimate potential sale for a month 𝑅𝑀 70 (1 𝑢𝑛𝑖𝑡) × 7,500 𝑢𝑛𝑖𝑡 = 𝑅𝑀 525,000
We assume that the potential sale for a month from the targeted people is RM 393,750 and
from the retailer/wholesaler is RM 131,250.After calculating the target market times with our
products price, the market size for a month estimated as RM 525,000. For a year we target a
potential sale of RM 6,300,000.
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7.4 Competitors
Based on our survey that been done, our product which is the virgin coconut oil - ‘cocogin’
also have our competitors in the market. The competitors that been observed for supplying oil
in the market were the Argan oil whereas another one is the essential oil. Each type of oils
have their own characteristic and speciality. Therefore table below shows the comparison of
our competitors based on their strengths and weaknesses of their business.
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7.5 Market Share
Market share can be defined as the percentage of total sales volume in a market captured by a
brand, product, or company. Moreover it also refers to a company's portion of sales within
the entire market in which it operates.
BEFORE INVOLVEMENT
Cocomune Oil
55%
Argan Oil
22%
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AFTER INVOLVEMENT
Harafiee Enterperise
10%
Cocomune Oil
50%
Argan Oil
20%
Cocomune Oil Argan Oil Minyak Kelapa Kak Ros Harafiee Enterperise
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7.6 Sales Forecast
Sales forecasting is the process of estimating future sales. Accurate sales forecasts enable
companies to make informed business decisions and predict short-term and long-term
performance. Companies can base their forecasts on past sales data, industry-wide
comparisons, and economic trends. Sales forecasting gives insight into how a company
should manage its workforce, cash flow, and resources. In addition to helping a company
allocate its internal resources effectively, predictive sales data is important for businesses
when looking to acquire investment capital.
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September 50 ml 1,875 25 46,875
150 ml 3,750 67.50 253,125
250 ml 1,875 112.50 210,937.50
TOTAL 7,500 205 510,937.5
October 50 ml 1,875 25 187,500
150 ml 3,750 67.50 1,012,500
250 ml 1,875 112.50 843,750
TOTAL 7,500 205 510,937.5
November 50 ml 1,875 25 46,875
150 ml 3,750 67.50 253,125 Festive
250 ml 1,875 112.50 210,937.50 Month
TOTAL 7,500 205 510,937.5
December 50 ml 1,875 25 46,875
150 ml 3,750 67.50 253,125
250 ml 1,875 112.50 210,937.50 Holiday
TOTAL 7,500 205 510,937.5
TOTAL FOR A YEAR 6,131,250
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7.7 Marketing Strategy
Product Strategy
I. Brand
Brand is a name, term, design, symbol or other feature that distinguishes an
organization or product from its rivals in the eyes of the customer. So our products
must be at the very best so that our customer will keep on buying our products and be
our loyal customer. Our brand name which is ‘Cocogin’ combines the meaning of
coconut and virgin reflects about what we are selling that is virgin coconut oil (refer
diagram 7.7.1). This brand name is very catchy and easy to remember or pronounce
by our customer or consumer. Cocogin or virgin coconut oil reflects the benefits of
our product which is, we are conscious about our customers health.
II. Quality
In HARAFIEE Coconut Enterprise, we are very concern to use only the high quality
ingredient in our product. The ingredients are only purchase from the trusted coconut
oil manufacture company. Therefore, we are purchasing the virgin coconut oil stock at
only one trusted seller that had been more than 10 years in producing it. Hence, the
product is 100% going through the inspection process before packing. We also
concern about the products hygiene by cleaning and doing maintenance to our
machines. Our cleaning products are also from food graded chemicals. Our products
are also approved by the HACCP (Hazard Analysis and Critical Control Point).
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III. Packaging and Protection
Our product consists of 3 types of sizes. Those size types are 50ml, 150ml and 250
ml. For 50ml and 150ml, we used plastic bottle which is High-
density polyethylene (HDPE) bottle (refer diagram 7.7.2). This bottle is most widely
used resin for plastic bottles. This material is economical, impact resistant, and
provides a good moisture barrier. HDPE is compatible with a wide range of products
including acids and caustics but is not compatible with solvents. Meanwhile for
250ml packaging, we uses a glass bottle. This is because glass is the trusted and
proven packaging for health, taste and the environment. We use a different style of
packaging for the product so that it is easier for the customer to carry it because of its
heavy load. Our packaging also has our on products logo which is ‘Cocogin’ to
promote our individuality as a virgin coconut oil in the market. It must be clear and
visible to the customer to see and different to our competitors.
50ml 150ml
250ml
Diagram 7.7.2: Type of packaging.
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IV. Labelling
Label is a part of product which carries verbal information about the product or seller.
It may be a small slip or printed statement and may be a part at package or it may be
attached to the product. It conveys verbal information about the product and seller.
The label enables producer to give a clear instruction, show the ingredients and others
important product details plus to make sure the buyers or consumers can easily
identify the product. We put labelling at our packaging so that the customers will
know the information of our product (refer diagram 7.7.3). The labelling provides
nutrition contents of the ingredients and the instructions to use them. We also provide
the information of our company if the customer wanted to ask any questions regarding
the product.
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V. Pricing Strategy
(Price = Fixed cost × profit margin)
Size Fixed cost (RM) × profit margin Price (RM)
15ml 10 × 150% 25
150ml 27 × 150% 67.5
250ml 45 × 150% 112.5
Pricing strategy refer to the methods by which a business calculates how much it will
charge for a product or service. It is based not only on the cost of the product, but also
on profit margin and a holistic view of the market and future viability.
Economic condition
Stable economic growth in Malaysia has been the advantage in our pricing strategy.
We need to consider the increasing of the price of the raw material and the coconut
crisis so that our product will meet the demand as a substitution to coconut oil. We
take advantage on the increasing of coconut oil price by lowering or product price.
Government regulation
The government regulation on our product such as taxes and the controlled price of
our raw material by the government are also the factors that we need to monitored on
pricing our product so that it meet the customer demand.
Consumer group
Consumer groups that we have aimed are also the factors that effecting our product
pricing. Majority of customers that use our product is athletes, model, artists and
upper class people. Our product is kind of product that people will recently use. So
putting the price to high will effecting our customer’s loyalty.
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Manufacture Consumer
Manufacturer Retailers Consumer
Manufacturer Wholesalers Consumer
Direct to customers
This is one ways channel that we use to sell our product directly to our customer. We
sell it through our social media or contact number.
Besides that, we also sell our products through retailers. Selection of numbers and
location of retailers have we identify as a potential retailers in Bukit Bintang area and
Ampang area. Those retailers includes herbal shop and etc.
Selling through wholesalers also one of our distribution strategy. This is because
wholesalers have better financing to cover the cost of the channel work. Wholesalers
that involve on our selling is hotels, pharmacies, Mydin, Giant and NSK located in
Bukit Bintang and Ampang area.
Social Media:-
- Facebook: HARAFIEECOCONUT
- Instagram: HARAFIEECOCONUT
- Twitter: @harafieecoconut
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Others:-
- Brochures
- Business card
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Diagram 7.7.5: Brochure of company.
Every once in a year we will join Herbal Asia Exhibition in other state and country to
expose and give a talk on our product. Herbal Asia Exhibition gives chance for us to
introduce our product to the public.
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7.8 Marketing Budget
Table 7.8.1: Marketing budget
Items Monthly (RM) Other Expenses Total (RM)
(RM)
Brochure 250 250
Signboard 3,000 3,000
Business card 150 150
Bunting 500 500
Banner 1,500 1,500
Grand opening 5,000 5,000
SUB TOTAL 7,400 10,400
GRAND TOTAL 10,400
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8.0 Operational plan
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8.3 Operational Process
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Products are then put into boxes
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8.4 Operation Layout
STORAGE AREA
PROCESSING AREA
OFFICE
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Table 8.4.1: Operation equipment budget.
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8.5 Production Planning
It is important to make sure that the business is able to produce outputs that are enough to
fulfil the expected market demands or sales. This can be achieving by having a good
production planning. In production planning, the business will determine how much output to
produce for a certain period of time such as in a day, a week or a month.
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8.6 Material Planning
For our material planning, these are the list of raw materials, quantities and cost needed for
production of virgin coconut oil for 1 month of production (refer table 8.6.1).
Table 8.6.1: Material planning budget.
Materials Price per unit (RM) Quantity Total cost (RM)
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8.7 Machine and Equipment Planning
Next, for our machine and equipment planning, there are few factors that we focus on in
order to achieve good quality of equipment and satisfactory. The first factor is the price.
Buying expensive and many machines will obviously cost our budget and even our factory
space. Therefore, we’ll purchase our machine equipment near our production place as it can
save our budget In terms of transportation cost and luckily our suppliers of equipment is just
few kilometres away. In addition, our machines are made up of stainless steel which is a
really good quality of steel and can stand more than 10 years of production. Besides that, this
machine consist availability of spare part and easy maintenance if break-down. This machine
is also being set up with latest technology and user friendly where it is an automatic machine
thus it does not required a lot of human handling. Furthermore, this machine also is really
suitable for our mass production of product where it can produce hundreds of bottles of virgin
coconut oil per day in order to fulfil the market demand.
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8.8 Manpower Planning
For the manpower planning, few steps needed in determine the amount of direct labour
required in our company.
Planned rate of production per-day – The production manager manage to achieve of 288
packages of virgin coconut oil per-day based on the filling machine and hand packaging that
are able to produce 32 packages in 1 hour. So, total of 9 working hour, a total of 288
packages of finished product able to be produce. By increasing working hour or adding
another machine the total output are also increase.
The standard time for a worker to produce one unit of product without machinery is 3 hour.
By using machinery, a worker able to produce 32 packages of finished product in 1 hour.
Worker productive time – The workers productive time is usually in the first 3 week of the
month and after the resting time. Total of working hour for the worker is 9 hour per-day.
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8.9 Overhead Requirement
In this process, overhead are also included and required in the operation. Overhead is a
requirement that other than direct raw materials and direct labour. From the table below, we
state the estimate amount of expenses that might be used.
TOTAL 2,600
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8.10 Location Plan
68000 Ampang
Malaysia.
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Factors that contribute in choosing the location:
Our distance with customer suitable and easy for them to come or search.
Located around the business areas, which are one of our advantages. Other
than that, there also other company and factory that located near with us.
We are located near with the supplier. That supply us palm oil because our
santan made from palm oil. It easier for both parties to deal. The supply of
the items can arrive quickly as well as save shipping costs because of short
distances.
Other factors
There are many of communities around us. People can buy our product at
distributor/dealer or buy directly from us. In addition, the security at our
location secure and good supervision around the area.
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8.11 License, Permits & Regulations
PERKESO
SOCSO Regulation
Compulsory to all worker
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License for business
Business includes every form of trade, commerce, craftsmanship, calling, profession or other
activity carried on for the purposes of gain, but does not include any office or employment or
any charitable undertaking or any occupation specified in the schedule under the provisions
of the Business Registration Act 1956 (ROBA 1956). Business that may be registered under
the ROBA 1956 is a business operating in West Malaysia which includes Peninsular
Malaysia and the Federal Territory. The importance of this license is, it will give us
permission to promote our product without any trouble. This license will be provided by
Majlis Perbandaran Selangor. As for our fee, the total payment would be RM 60.00 ringgit
only as we registered our companies using a trade name.
Halal certification
Halal certification is a must to facilitate us to market our product in Malaysia. This is because
in Malaysia the majority of people are Muslim. Without the existence of Halal certificate our
product will be difficult to be marketed because no belief from consumer that are Muslim.
Halal certificate can be applied through JAKIM. JAKIM will examine process palm milk
production in our factory to get Halal certification.
This need is different follow production activities. Hence the installation also vary from
certain factory site layout. Therefore as an entrepreneur we should take some actions that
with regard to standards of safety, health and where welfare these machines fixed. Steam
boiler design, mix pressure not fiery and machine lift need to be approved first before it fitted
and handled. These approvals will be accessible from Department Factory and machinery
subjected to examination at least every 15 month. This is to ensure the machine that we use is
safe and will not harm any employees.
As our entrepreneur should take attention that employee welfare need to be looked after and
enhanced to create one relationship management form that is good with staff. Workers social
need is a requirements of the law set through Ordinance Employees Provident Fund 1951 and
Akta Keselamatan Sosial Pekerja 1969. All of the employees and employer required to
contribute to EPF and contribution rate is 12% from salary paid by employers and 1.75% is
for SOCSO. The sector involve is KWSP and PERKESO.
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8.12 Implementation Schedule
Incorporation
of business April-Mei 2016 2 months
Application
for permits Mei-Jul 2016 3 months
and license
Searching
for business Aug 2016 1 months
premise
Renovation
of premise Sept-Oct 2016 2 months
Procurement
of machines Oct-Nov 2016 2 months
and raw
material
Recruitment
of labours Dec 2016 1 months
Installation
of machines Dec 2016 1 months
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8.13 Operation Budget
As other department, operation also have its own operational budget for all the activities
involved. It can be categorizes into three parts which is fixed asset expenditure, monthly
expenses and lastly other expenses.
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9.0 Financial Plan
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HARAFIEE Coconut Enterprise
Own Contributions
Capital Expenditure Cost Loan Hire-Purchase
Cash Existing F. Assets
Land & Building 100,000 100,000
Office Equipment 12,145 12,145
Office Renovations 1,000 1,000
Office Furnitures and Fitting 10,250 10,250
Vehicle (Lory) 5,000 5,000
-
-
-
-
Machinery and Equipment 1,500 1,500
Maintanence machinery 1,000 1,000
Operation equipment 1,176 1,176
-
Working Capital
Sales & Marketing Costs (monthly) 13,375 13,375
General & Administrative Costs (monthly) 2,000 2,000
Operations & Technical Costs (monthly) 186,744 186,744
Pre-Operating & Incorporation Costs (one-off) 300 300
Other Expenditure (annually) 2,000 2,000
Provision for Contingencies 33,449 33,449
TOTAL 369,939 369,939
Proposed Terms of Loan (if required) Proposed Terms of Hire-Purchase (if required)
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9.2 Pro forma cash flow statements
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## 6,414
Net cash from
operating activities Net cash used in Net cash from
Cash balance
investing activities financing activities
2021
2020
2019
2018
2017
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9.3 Pro forma income statements
Expenditure
Pre-Operating & Incorporation Expenditure 300
General & Administrative Expenditure 24,000 24,960 26,458 26,458 26,458
Sales & Marketing Expenditure 160,500 166,920 176,935 176,935 176,935
Note 1
Cost of Sales
Opening Inventory of Finished Goods 613,125 637,650 688,662 688,662
Add: Total Production Cost (Note 2) 2,075,160 2,324,637 2,500,568 2,514,421 2,514,421
Labour
Salaries, Wages, EPF & SOCSO 159,675 166,062 176,026 176,026 176,026
Factory Overhead
Depreciation of Fixed assets (Operations) 735 735 735 735 735
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Total Expenditure
Total Sales Net Income
2021
2020
2019
Net Income
Total Expenditure
2017
Thousands
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9.4 Pro forma balance sheet
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Total
SUMMARY Total Assets Total Equity
Liabilities
2017 4,846,675 4,846,675
2018 8,723,423 8,723,423
2019 12,949,211 - 12,949,211
2020 17,110,133 - 17,110,133
2021 21,271,056 - 21,271,056
2021
2020
2019 EQUITY
LIABILITY
ASET
2018
2017
Thousands
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10.0 Conclusion
We also hope that our products will not just satisfy our customer demand but also
really hope they will get the fully benefits of coconut oil by using our product. In addition,
we realized that, there is a high demand of our product among people especially people who
practice healthy lifestyle. Therefore, this is an advantage to us to get opportunity to achieve
large profit.
We also determine to produce virgin coconut oil product that are fresh and healthy so
that we will succeed in changing people’s diet. .Last but not least, we hope our product
Cocogin will enter not just in the local market but also foreign country with successfully and
will be the first choice by customer. We Harafiee Coconut Enterprise will give our full effort
in order to maintain our product quality and to give full satisfactory to our customer.
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