Afa Berhas Business Plan
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Executive Summary
This business name is AFA Berhad. We establish a car rent business. There is a possibility for an exciting and profitable new business in Segamat. us will to rent cars to University of Segamt students, a secondary student, as well as anyone who would have a need for efficient, around-town transportation. There is currently no business like this, in Segamat, which caters to this market.
For slightly more than the cost of a monthly cellular phone bill, it is possible for a student to have their own mode of transportation during the school year. AFA Berhad have many positive advantages over cars such as lower operating costs, fuel efficiency, and are less costly to maintain.
The target market for this business would be the approximately 15,000 full-time students. There are also thousands of students who are commuting daily from the Segamat-Town area. Parking on campus is hard to find, and the bus offers few options. This is where the economical AFA Berhad services comes into play.
Many students do not have the disposable income that it takes to purchase a car, but they are in a position to pay RM70 per day to rent one. AFA Berhad would purchase used cars for RM700-RM1000 and rent them out. The average car would be paid off in under one year.
In year one, AFA Berhad would attempt to get 1% of all full-time students. This would equate to 150 cars rented. We expect the five year growth rate to be at least 15%.
1.1 Objectives
Rent 150 units in year one.
AFA Berhad will be fully self-sufficient and profitable by year three.
get 15% annual growth rate.
1.2 Mission
AFA Berhad will service the student first. At AFA Berhad, clients will be able to rent a quality means of transportation at a fair price. AFA Berhad will also be a profitable business which will treat employees fairly and provide financially for its owners.
1.3 Keys to Success
Good customer service and value.
Affordable rental prices.
Reaching the target market.
Integrity in serving our customers, resulting in repeat purchases.
always make customer satisfied
Company Summary
AFA Berhad will rent cars to University of Segamat students, as well as others who would have a need. There is currently no business like this, in Segamat, which caters to this market. For slightly more than the cost of a monthly cellular phone bill, it is possible for a student to have their own mode of transportation that is fairly inexpensive. The target market for this business would be the approximately 15,000 full-time university students.
There are thousands of students who are commuting daily from the Autzen Field area. Parking on campus is hard to find, and the bus offers few options. This is where the economical moped comes into play. Many students do not have the disposable income that it takes to purchase a moped, but they are in a position to pay $50 per month to rent. Assuming an average purchase price of $550, and a ten month rental at $50 per month, it is possible for University Mopeds to be profitable in year two.
2.1 Start-up Summary
This company will be funded by Matthew Cavanaugh. The majority of the funding will come from private savings and local investors, plus loans backed by starting assets. The cost of the start-up, including inventory, legal expenses, and advertising, will total $100,000. We anticipate that this company will start generating immediate cash flow.
Start-up Requirements
Start-up Expenses
Legal
$500
Stationery etc.
$150
Brochures
Consultants
Insurance
$500
$1,000
Research and development
$750
Expensed equipment
$1,500
Other
Total Start-up Expenses
$4,400
Start-up Assets
Cash Required
$33,100
Start-up Inventory
$82,500
Other Current Assets
$50,000
Long-term Assets
$300,000
Total Assets
$465,600
Total Requirements
$470,000
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Start-up Funding
Start-up Expenses to Fund
$4,400
Start-up Assets to Fund
$465,600
Total Funding Required
$470,000
Assets
Non-cash Assets from Start-up
$432,500
Cash Requirements from Start-up
$33,100
Additional Cash Raised
Cash Balance on Starting Date
$33,100
Total Assets
$465,600
Liabilities and Capital
Liabilities
Current Borrowing
$40,000
Long-term Liabilities
$300,000
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities
$340,000
Capital
Planned Investment
Investor 1
$100,000
Investor 2
$10,000
Other
$20,000
Additional Investment Requirement
Total Planned Investment
$130,000