To Propose, Plan and Present a Complete Outline of an Effective Business Plan Developed by a Young Entrepreneur to Raise Capital for a Proposed Venture.
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BUSINESS PLAN
ELEGANT CRYSTAL SDN. BHD.
CONTENTS
EXECUTIVE SUMMARY
THE NATURE OF ECSB BUSINESS
Position to Date
Mission Statement
Short-term Objectives
Long-term Objectives
Key Personnel
Legal Structure
Professional Advisers
3.0 PRODUCTS AND SERVICES
How We Operate
SNSBs Unique Selling Matrix
Sales Materials and Special Offers
Retailing and Supplying
THE MARKET AND THE COMPETITION
Our Target Market
Market Positioning
Number of Clients
Response by Customers
The Competition
Competitor Price Comparison
MARKETING PLAN
Anticipated Demand
Methods of Marketing
Attracting Clients
Public Relations
OPERATIONAL PLAN
Location of SNSB
Support for Clients
Service Plan
Methods of Distribution
Making the Sale
Job Responsibilities
Insurance
7.0 FINANCIAL FORECASTS
7.1 Profit and Loss Forecast
7.2 Explanatory Notes for Profit and Loss
7.3 Cash Flow Forecast
7.4 Explanatory Notes for Cash Flow Forecast
7.5 Balance Sheet Forecast
7.6 Explanatory Notes for Balance Sheet
8.0 FINANCIAL REQUIREMENTS
8.1 Required Finance
8.2 Risks
EXECUTIVE SUMMARY
Elegant Crystal Sdn Bhds business plan is outlined in this paper. Elegant Crystal Sdn Bhd (ECSB) is involved in retailing and distributing crystals and semi-precious stones (main products). It distributes its main product via a mail order service. This mail order was launched at the end of last year to fill a niche that exists in the Malaysian marketplace for crystal and semi-precious stones. ECSB offers retail and distributorship services efficiently at half the competitors prices, and always maintains a very high level of quality and customer satisfaction. ECSBs business operation are currently by three people: my business partner Florence Chong, my brother Amer Ibrahim and myself.
ECSB keeps its overheads to the lowest level possible. This enables us offer our customers a service that is indeed competitive and of a professional standard. Working from a shop lot that we rent and within fifteen minutes of driving from our house, ECSB orders its stocks from reliable suppliers in Guangzhou, China. This Business Plan is produced by our own self, with some advice from our friend Nabil Sanusi who is public accountant.
A study that we conducted a year ago reveals that there is a growing trend towards acquiring crystal both as ornamental pieces to keep in homes and as jewellery that women and men wear either as rings, pendants, necklaces, bracelets and brooches (products sample pictures are shown in Appendix 4a and Appendix 4b). Some people regard crystals as having properties and magnetic forces that energize and revitalize them. We are of the view that demand for crystals will increase as more people become aware of such properties.
ECSBs products are advertised mainly in the local daily papers, business journals and a direct selling catalogue that we mail to selected families, distributed families. Their name and addresses have been obtained from Rukun Tetangga register book. Customers respond to these kind of advertisements and word-of-mouth recommendations to order the types of crystals they prefer.
It is the intention of ECSB to maintain a mail order company and to be the main supplier of quality crystals for East and West Malaysia. When ECSB has established itself as a market leader and controls a large market share, we will then look to promote this business on a regional scale in the Asian region. ECSB welcomes any overseas orders (like from Brunei, Singapore, Philippines and Indonesia).
We will need an initial investment of RM150,000 to get the business established, plus daily working capital requirement of RM50,000. RM90,000 have so far been funded by ourselves, and we seek the balance of RM110,000 from our bank. This RM110,000 in the form of an overdraft or trade financing shall be guaranteed by our two Directors, Florence Chong and myself, and is repayable on demand.
In this operational year, we conservatively estimate we will receive twenty to thirty five sales a week. In the second year, we anticipate an increase in sales of between twenty five to forty sales weekly. The crystals that ECSB retails have a price range of RM50 to RM900. With these figures we expect to complete the first year of trading with a little over RM1,700,000 in annual sales.
NATURE OF OUR BUSINESS
Position to Date
We have done renovations to the shop lot that is also our showroom. We designed and furnished the show room with up-to-date and elegance concept. Initial stocks and samples worth RM50,000 are on display, and we expect another stock shipment of RM80,000 to arrive in 3 months time from China. The supplier has given us a two months credit period.
Mission Statement
ECSB was established to fill a niche