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CONFIDENTIAL

Confetti

Business PlanPrepared April 2017

Contact InformationNadhrah Hayani [email protected]

Confetti

Table of ContentsThe Company...................................................................................1

Executive Summary...................................................................1

Company Summary....................................................................2

Company Structure....................................................................2

Location.....................................................................................2

Key Personnel............................................................................4

Goals & Objectives.....................................................................9

Strengths & Weaknesses...........................................................9

Mission & Vision Statements...................................................10

Products.........................................................................................11

Product Description.................................................................11

Cost Of Sales............................................................................11

Future Projections...................................................................11

Legal Concerns........................................................................11

Market Analysis Summary.............................................................12

Market Research.....................................................................12

The Competition......................................................................12

Marketing & Sales Strategies..................................................12

CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.

Confetti

Strategy & Implementation...........................................................13

Overhead Costs........................................................................13

Suppliers..................................................................................13

Quality Control........................................................................13

Distribution.............................................................................13

Employees................................................................................13

Assets & Equipment.................................................................13

Advisory Board.........................................................................13

Insurance Policies...................................................................13

Licenses & Permits..................................................................13

Management Summary..................................................................14

Projections Of Income & Expenses..........................................14

Cash Flow Forecasts................................................................14

Financial Statements...............................................................16

Capital Expenses......................................................................18

Net Worth Statement...............................................................18

Financial Plan................................................................................19

Profit and Loss Statement.......................................................19

Balance Sheet..........................................................................22

Cash Flow Statement...............................................................26


Confetti

Appendices.....................................................................................29


Confetti

The CompanyExecutive SummaryConfetti will be a one of a kind ice-cream parlor located on a busy Gaya Street in Kota Kinabalu, Sabah. Confetti, aptly named for the colorful bits of paper thrown from a height to enhance the gaiety of a festive event, fills of blowing up such happiness and joy of the shop.

Confetti is an exciting new concept that brings the city's coolest ice-cream parlor, with a twist. The innovative twist to this bright ice-cream parlor is that you can churn your own soft serve with mix-ins. Tables are equipped with machines, the kind fitted with a frozen canister which is also called an ice-cream maker. Customers start the creation process by choosing Confetti's homemade ice-cream base which are Vanilla, Chocolate and Pureed Fruit such as strawberries and mangoes. From there, you create your own flavor by choosing a baked good to add to the mix such as cookie, brownie or pound cake, and finally, pick 3 toppings from a roster of 25. Throw the choice in the ice-cream maker and wait 8 minutes for concoction to reach the right consistency. And if all that is still too rich for your blood, know that Confetti also sells house-made gelato in stellar and sophisticated flavors like coffee, salted caramel and sorbets of mango, lemon and raspberry. Customers may be able to take home some of our delicious baked goods, candy or a pint of gelato. Confetti offers other exciting menu such as milkshakes, soft drinks and coffee beverages.

The company estimate total capital investment of business is RM 200,000. The owner will invest personal funds of RM 100,000 into the business while the remaining capital will be obtained through Maybank

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CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the

Confetti

commercial loans. This business plan offers financial institutions an opportunity to review our vision and strategic focus. It also provides a step-by-step plan for the business start-up, establishing favorable sales numbers, gross margin, and profitability.

Company SummaryConfetti is a make-your-own ice cream shop located in downtown Kota Kinabalu, providing healthy house-made organic ice cream base to all age groups especially to kids and teenagers. Confetti welcomes customer to create their own dream flavor or to stop in and just hang-out at the store's communal table. Confetti will feature vanilla and chocolate each day plus one additional flavor of the day which is either strawberry or mango. Confetti sells quality products and provides excellent customer service for ice cream lovers and persons looking to enhance their creativity experience.

The company has plans to expand with an additional two stores in the local megalopolis over the next three years. Implementing a sound business model into Confetti's first store will aid expansion plans and open up the possibility of franchising. Confetti is currently seeking a bank loan and an additional personal funds from the owner himself. Major costs include initial inventory purchases, equipment purchases, shop rental, personnel wages, site remodeling, marketing and various other operating expenses. Projected gross sales for the first year of business are expected to be over RM 150,000.

Company StructureConfetti is a start-up sole proprietorship business, wholly owned by Nadhrah Hayani, a young restaurateur with only a few years running and

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managing food and beverage industry. Nadhrah will contribute RM 100,000 and the remained capital RM 100,000 will be obtained through commercial bank loan. This will keep the majority of the equity in the company under Nadhrah's control.

LocationConfetti is an ice cream parlor located in a renovated shop lot immediately adjacent to this conservative, British Colonial—inspired, Jesselton Hotel. Originally named Bond Street, Gaya Street located in the Kota Kinabalu Central Business District has been the center of businesses for over a hundred years. The Gaya Street shop lot provides Confetti with a prime location in the downtown sector. Gaya Street is one of the popular places to visit by tourists all year long.

Below are the following requirements :

• Optimum size: 1,500 square feet.• Traffic Count: 140,000 daily vehicle count is preferred.

(source: http://www.theborneopost.com/2016/12/28/traffic-woes-haunt-kk-residents-daily/)

• Demographics: Typically 1,319 people per km². (source: https://en.wikipedia.org/wiki/Greater_Kota_Kinabalu)

• Parking: Parking spaces that are an inconvenience and a lot of foot traffic passing by.

Confetti will be leasing 1,500 square feet at a price of RM 1.50 per square foot/month. Confetti have chosen this location because it meets the criteria and includes a generous offer of RM 1.50 per square foot that will be allocated to our business lease-hold improvement costs. The company has secured a one-year lease of the vacant 1,500 square feet

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Confetti

premises previously occupied by a hair salon. The lease contract has an option of renewal for three years at a fixed rate that Confetti will execute depending on the financial strength of its business.

The floor plan will include a 1,500 square feet toppings and gelato bar, which will include a seating area with 6 tables, a kitchen, storage area and a bathroom. The space in the toppings/gelato bar will be approximately distributed the following way--825 square feet (i.e., 55% of the total) for the seating area, 390 square feet (26%) for the production area, and the remaining 285 square feet (19%) for the customer service area.

This property is located in a commercial area within a walking distance from the Asian Tourism International College campus . The commercially zoned premises have the necessary water and electricity hookups and will require only minor remodeling to accommodate the bar, kitchen and storage area. The bar's open and clean interior design with modern bold decor will convey the quality of the served menu, and will be in-line with the establishment's positioning as a funky place where people can be creative and have fun. The clear window displays, through which passerby will be able to see customers enjoying their ice cream making.Colorful neon signs will be aimed to grab the attention of the customer traffic and reinforce the playful brand, which also will be implemented on the store’s website and in printed collateral.

This area was chosen for various reasons, including:

• Central location easily accessed.• Proximity to the downtown areas.• Proximity to Asian Tourism International College and local police

station.

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• High Visibility.• Diverse population within the community.• Desire for central business district.• Scarcity of other ice cream parlor in the area.

All of these qualities are consistent with Confetti's goal of providing a community hub for socialization and entertainment.

Key PersonnelConfetti Manager

The manager is someone who has a deep passion for customer service and ice cream. They are a problem- solver with strong work ethic and leadership skills. . They are an experienced leader who understands the importance of safety and health regulations and standards.

Responsibilities

• Make a check and balance between all the employees.• Manager needs to motivate his team and create a balance between

all employees.• Verifies the company accounts and makes a detail plan about

company current performance with desired performance.• Identify and delegate responsibilities to ice cream staff to ensure

objectives are met and excellent service is consistently achieved.• Manage operations with passion, integrity, and knowledge while

promoting the culture and values of Confetti.• Maintain proper health and safety regulations in the shop.

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• Create a positive guest experience by delivering a high level of service and ensuring all staff engage guests to understand their needs and exceed expectations.

• Consistently monitor product and waste costs to remain within goals.

• Follow the Confetti policies and procedures, including those for cash handing and safety/security.

• Offer new menu solutions to management• Work with the floor manager to ensure proper product controls• Maintain and process orders of Confetti product and supplies• Develop and implement creative solutions to areas of improvement.• Complete the season to the specifications outlined in Confetti

Employment Contract.

Minimum Qualifications

• Minimum Age: 21 years• Education Requirement : University Graduates• Previous Experience: Prior Restaurant Experience Preferred• Customer Service: A friendly, relaxing demeanor, courteousness

and quick service will help get repeat customers.• Stamina: Long, busy days • Teamwork: Manager is a leader of the team. Being a team leader is

essential.• Leadership Skills: Manager will be training and coaching other

staffs to make a great dining experience.• Must have reliable transportation• Able to use touch-sensitive POS System• Able to lift minimum of 10 lbs.• Must be able to take direction and delegate responsibilities• Able to work in a fast paced environment

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• Able to work weekends and holidays.

Confetti Floor Manager

The floor manager needs to be good at multitasking and innovative problem solvers. Under supervision of Confetti manager, floor manager is to assist in supervision and daily operation of the food and beverage operation at Confetti.

Responsibilities

• Floor manager checks the performance of sales representatives.• The floor manager manages the problem face by sales

representatives.• Validation of sales and purchases.• He needs to take customer feedback about product and services

and create changes according to them.• Assists manager in supervising, scheduling and training of seasonal

employees.• Operates a variety of specialized food service equipment, i.e. drink

dispenser.• Prepares and serves menu items.• Entertain customers.• Suggests menu additions, deletions and price changes to the

Manager.• Assists in compliance with Health Department regulations.• Responsible for cleaning and general maintenance of the facility

and equipment.• Has understanding and is capable of teaching cash register

operation.• Assume responsibility in absence of Café Manager.

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• Performs other duties as assigned.


• Minimum Age: 18 years• Education Requirement : University Graduates/School Leavers• Previous Experience: Prior Restaurant Experience Preferred• Customer Service: A friendly, relaxing demeanor, courteousness

and quick service will help get repeat customers.• Stamina: Long, busy days • Teamwork: Floor manager is a part of a team. They will be working

with others to make a great dining experience. Being a team player is essential.

• Leadership Skills: Floor manager will have to keep employees motivated, resolve conflicts and make hard decisions.

• Must have reliable transportation• Able to use touch-sensitive POS System• Able to lift minimum of 10 lbs.• Must be able to take direction and delegate responsibilities• Able to work in a fast paced environment• Able to work weekends and holidays.

Sales Executive

Sales executives are the key point of contact between an organisation and its clients: answering queries, offering advice and introducing new products. This job requires face to face meetings with new and existing clients. Confetti is looking for candidates who are goal oriented with a strong student mentality.

Responsibilities

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• Builds business by identifying and selling prospects.• Maintaining relationships with clients.• Identifies product improvements or new products by remaining

current on industry trends, market activities and competitors.• Aiming to achieve monthly or annual targets.


• Minimum Age: 18 years• Education Requirement : University Graduates/School Leavers• Previous Experience: Prior Restaurant Experience Preferred• Customer Service: A friendly, relaxing demeanor, courteousness

and quick service will help get repeat customers.• Must have reliable transportation• Must be able to take direction and delegate responsibilities• Able to work in a fast paced environment

Accountant

The primary task of accountants, which extends to all the others, is to prepare and examine financial records. Accountants and auditors perform overviews of the financial operations of a business in order to help it run efficiently.

Responsibilities

• Documents financial transactions by entering account information.• Secures financial information by completing data base backup.• Prepares payments by verifying documentation and requesting

disbursement.• Prepares asset, liability and capital account entries by compiling

and analyzing account information.

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• To make sure that records are accurate and that taxes are paid properly and on time.


• Minimum Age: 21 years• Education Requirement : University Graduates• Previous Experience: Strong accomplished experience in

restaurant accounting• Must have reliable transportation• Must be able to take direction and delegate responsibilities• Able to work in a fast paced environment.• Operational knowledge of POS system, tracking costs and

preparing payroll.• In-depth knowledge in the fields of Accounting and Accounts

Payable• Proficient in QuickBooks, Excel, Word, Outlook, and Access• Ability to accurately calculate accounting and payment of invoices

due• Strong 10 Key calculator skills• Amazing ability to multi-task and handle challenging priorities• Extremely organized with detailed attention• Strong written and verbal skills

Goals & ObjectivesLong Term Goals

• To make long-term relationships and friendly environment image in customer's mind.

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• To expand with an additional two stores in the local megalopolis over the next three years.

Short Term Goals

• To gain 50% of market share in first year of business in that particular area.

• At least 50% initial investment must recover in first year of business.

Strengths & WeaknessesThe Confetti's notable strengths include a unique ice-cream shop concept unlike any other in Malaysia. The superior technology allows ice-cream to better meet the needs of their customers in ways that competitors can't imitate. Customers will be able to choose their own ingredient which gives them a healthier option in that Confetti can avoid anything that customers are known to be allergic to such as nuts or ingredients with certain colors or addictive and be able to choose in whatever quantities they want whenever they want.

On the flip side, weaknesses include a lack of brand recognition when compared with national or regional franchises., rainy weather which may affect sales negatively and parking spaces that are an inconvenience where customers must spend excessive time searching for a parking space. As it is a child's time to get creative and chaotic, toppings such as sprinkles would often mess the place is another potential weakness.

Confetti see great opportunity in opening additional location and additional dessert menu that may be in the works. Creating new opportunities is where Confetti plan for growth in products such as

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adding a "pureed fruit base of the month", special discounts for frequent customers and membership application.

The most obvious threat is that others like our concept and open their own Confetti eateries, although they will be hard pressed to beat our menu. Mature markets are competitive. In order for ice cream to grow in a mature market, it has to increase market share, which is difficult and expensive. Other than that, competing with giant brand such as CAMACA, Veda-Blu and Baskin Robbin is another threat. We are working hard to make the most of our advantage.

Mission & Vision StatementsMission Statements

Confetti's mission is to provide our customers with the enjoyment and ultimate ice-cream experience serving quality ice cream and desserts in a family friendly sit down experience. We strive to be a beacon of light in our local community, and the perfect spot for celebrating life’s little moments by enjoying the simple pleasures of wholesome goodness.

Vision Statements

Confetti's vision is to become a successful business and grows with more locations and to insure what we do, we do at the highest level.

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ProductsProduct DescriptionCost Of SalesFuture ProjectionsLegal Concerns

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Market Analysis SummaryMarket ResearchThe CompetitionMarketing & Sales Strategies

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Strategy & ImplementationOverhead CostsSuppliersQuality ControlDistributionEmployeesAssets & EquipmentAdvisory BoardInsurance PoliciesLicenses & Permits

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Management SummaryProjections Of Income & ExpensesCash Flow ForecastsKey Assumptions

Revenue by Month

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Expenses by Month

Net Profit (or Loss) by Year

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Financial StatementsProjected Profit & Loss

FY2018 FY2019 FY2020

Revenue

Direct CostsGross Margin

Gross Margin %

Operating ExpensesSalaryEmployee Related Expenses

Total Operating Expenses

Operating IncomeInterest IncurredDepreciation and AmortizationIncome Taxes

Total ExpensesNet ProfitNet Profit / Sales

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Projected Balance Sheet

FY2018 FY2019 FY2020CashAccounts ReceivableInventoryOther Current Assets

Total Current AssetsLong-Term AssetsAccumulated Depreciation

Total Long-Term Assets

Total AssetsAccounts PayableIncome Taxes PayableSales Taxes PayableShort-Term DebtPrepaid Revenue

Total Current LiabilitiesLong-Term Debt

Total LiabilitiesPaid-in CapitalRetained EarningsEarnings

Total Owner's Equity

Total Liabilities & Equity

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Projected Cash Flow Statement

FY2018 FY2019 FY2020

Net Cash Flow from Operations

Net ProfitDepreciation and AmortizationChange in Accounts ReceivableChange in InventoryChange in Accounts PayableChange in Income Tax PayableChange in Sales Tax PayableChange in Prepaid Revenue


Investing & FinancingAssets Purchased or SoldInvestments ReceivedChange in Long-Term DebtChange in Short-Term DebtDividends & Distributions

Net Cash Flow from Investing & FinancingCash at Beginning of PeriodNet Change in Cash

Cash at End of Period

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Capital ExpensesNet Worth Statement

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Financial PlanProfit and Loss StatementFY2018 May '17 Jun '17 Jul '17 Aug '17 Sep '17 Oct '17 Nov '17 Dec '17 Jan '18 Feb '18 Mar '18 Apr '18

Revenue

Direct Costs

Gross Margin

Gross Margin %

Operating Expenses

Salary

Employee Related Expenses


Operating Income

Interest Incurred

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Depreciation and Amortization

Income Taxes

Total Expenses

Net Profit

Net Profit / Sales

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FY2018 FY2019 FY2020

Revenue

Direct Costs

Gross Margin

Gross Margin %

Operating Expenses

Salary

Employee Related Expenses


Operating Income

Interest Incurred


Income Taxes

Total Expenses

Net Profit

Net Profit / Sales

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Balance SheetFY2018 May '17 Jun '17 Jul '17 Aug '17 Sep '17 Oct '17 Nov '17 Dec '17 Jan '18 Feb '18 Mar '18 Apr '18

Cash

Accounts Receivable

Inventory

Other Current Assets

Total Current Assets

Long-Term Assets

Accumulated Depreciation


Total Assets

Accounts Payable

Income Taxes Payable

Sales Taxes Payable

Short-Term Debt

Prepaid Revenue

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Total Current Liabilities

Long-Term Debt

Total Liabilities

Paid-in Capital

Retained Earnings

Earnings



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FY2018 FY2019 FY2020

Cash

Accounts Receivable

Inventory

Other Current Assets

Total Current Assets

Long-Term Assets

Accumulated Depreciation


Total Assets

Accounts Payable

Income Taxes Payable

Sales Taxes Payable

Short-Term Debt

Prepaid Revenue

Total Current Liabilities

Long-Term Debt

Total Liabilities

Paid-in Capital

Retained Earnings

Earnings

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Cash Flow StatementFY2018 May '17 Jun '17 Jul '17 Aug '17 Sep '17 Oct '17 Nov '17 Dec '17 Jan '18 Feb '18 Mar '18 Apr '18


Net Profit


Change in Accounts Receivable

Change in Inventory

Change in Accounts Payable

Change in Income Tax Payable

Change in Sales Tax Payable

Change in Prepaid Revenue


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Investing & Financing

Assets Purchased or Sold

Investments Received

Change in Long-Term Debt

Change in Short-Term Debt

Dividends & Distributions

Net Cash Flow from Investing & Financing

Cash at Beginning of Period

Net Change in Cash


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FY2018 FY2019 FY2020


Net Profit


Change in Accounts Receivable

Change in Inventory

Change in Accounts Payable

Change in Income Tax Payable

Change in Sales Tax Payable

Change in Prepaid Revenue


Investing & Financing

Assets Purchased or Sold

Investments Received

Change in Long-Term Debt

Change in Short-Term Debt

Dividends & Distributions

Net Cash Flow from Investing & Financing

Cash at Beginning of Period

Net Change in Cash


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Appendices

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