SALWA Business Plan

8/2/2019 SALWA Business Plan

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BUSINESS PLAN (GROUP)

MGT 4650K-1 Case Study: MGY Engineering Sdn Bhd

*SALWA (BSMS) (0817076), NOREHA (BSMS) (0816216), SHAIRA (BSMS) (0817814), ZULAIHA(BSMS) (0817128), Siti Meriam (BSMS) (0812028), *group leader

E-mail of sender representing the group: [email protected]...........................

Hand phone no. of group leader: ...........0139410859.......................

Due date:.....11/12 December 2011 Date of submission: 11December 2011..

Email attachment: SALWA-Eship Business Plan study

Destination Email: MGT 4650K-1 [email protected],


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BERJAYA BINA SDN BHD .IIUM

Construction Business Plan

MGT 4650K

SALWA*,SHAIRA,NOREHA, SITI MERIAM, ZULAIHA

[11/12/2011]


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1.0 Executive Summary

1.1 Introduction ........................................................................................................................................... 11.2 The Company .................................................................................................................................... 11.3 Services ............................................................................................................................................. 11.4 The Market.21.5 Financial Considerations2

2.0 Company Description3

A. Company History3B. Definition of The Business..3C. Objectives and Goals...4D. Mission Statement...4E. Description of the Products and Services....4

2.2 Company Ownership.6

3.0 Services ................................................................................................................................................. 7

4.0 Market Analysis.84.1 Market Segmentation.8 4.2 Target Market Selection 114.3 Buyer Behavior Analysis... 124.4 Competitor Analysis. ...12

5.0 Marketing Plan.135.1 Marketing Strategies15 5.2 Sales Strategy 175.3 Sales Forecast... 18


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8.0 Financial Plan258.1 Important Assumptions.25

Table: General Assumptions.. 258.2 Break-even Analysis..26

Chart: Break-even Analysis.26 Table: Break-even Analysis.

8.3 Projected Profit and Loss27 Chart: Profit Monthly ............................................................................................................................Chart: Profit Yearly...............................................................................................................................Chart: Gross Margin Monthly ...............................................................................................................Chart: Gross Margin Yearly..................................................................................................................Table: Profit and Loss ...........................................................................................................................

8.4 Projected Cash Flow .30Table: Cash Flow ..................................................................................................................................Chart: Cash............................................................................................................................................

8.5 Projected Balance Sheet 31Table: Balance Sheet.............................................................................................................................

8.6 Business Ratios32 Table: Ratios .........................................................................................................................................

Table: Sales Forecast .................................................................................................................................. 1Table: Personnel.......................................................................................................................................... 3

Table: Personnel.......................................................................................................................................... 3Table: General Assumptions ....................................................................................................................... 5Table: General Assumptions ....................................................................................................................... 5Table: Profit and Loss ................................................................................................................................. 6


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Berjaya Bina Sdn Bhd

1.0 Executive Summary

Introduction

Berjaya Bina Sdn. Bhd is a construction company and one of a limited-liability company. The

company has successfully operated in Kuantan area for the first years working on small scale

construction, repair, and alteration projects focusing on residential contracting. With the business

boom that is occurring in our local area and the desire to improve overall profit margins, the

company is planning to generate target market from small residential clients to the larger scale of

resident clients and toward commercial customers. This business plan will lay out our goals and

tasks to make this transition successful and create enough market shares to succeed in this highly

competitive market.

The Company

Berjaya Bina Sdn. Bhd began in 2011 when five students graduated from International Islamic

University Malaysia began their own company, residential and commercial constructions. In 2011


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repair services), painting, and plumbing and utilities installation (repair services) and expert in home

interior designs. In addition, skills Berjaya bina lacks can be subcontracted.

The Market

Bandar Indera Mahkota is booming at this moment, overall business growth during this year has

averaged approximately 1.5% and is expected to continue for at least the next seven years. This

makes for a very attractive market for Berjaya Bina Commercial Contractors.

We will be concentrating on the customers that will provide us with the greatest margin, in other

words those clients desiring home (resident) construction. This is the fastest growing segment of

commercial clients requiring our services. The other categories that we will serve include the

renovations segment, home interior designs segment, building maintenance segment and all other

potential commercial clients.

Financial Considerations


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2.0 Company Description

A. Company History

Berjaya Bina Sdn. Bhd is a construction company run by Miss Salwa Izwani, Miss Siti Meriam, Miss

Noreha, Miss Shaira and Miss Zulaiha. The business is limited-liability company and owned by five

graduates from International Islamic University Malaysia, minor in business administration. Due to their

major in study field and experienced during internship, which would be great help in leading the success

in the operation of the business.

The ideas of starting a business came from an increasing in demand for residential and

commercial constructions. Besides, changes in social forces required people to have wider space of their

houses. Therefore, the area proposed at Bandar Indera Mahkota, located at Kuantan city. The Office will

be housed at the Malay Town which is in front of East Coast Mall and there is few administration

buildings located near the office.


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C. Objectives and Goals

The company will focus on customers satisfaction and maintain good relationship with the regular

customers in order to earn their trust. Companys objectives are :

To shape benchmarks of excellence in home construction industry especially in house

renovation.

To constantly improve all aspects of company operations.

To offer the best solutions that benefits client.

To provide clients with highest level of service and product quality

D. Mission Statement

Berjaya Bina Sdn. Bhd strives to offer the excellent services, highest quality design, and cost


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1. Residential Construction

The company offers clients dreams home into realities, with cost effective and within

clients range of budgets. In addition, strategic locations in urban and rural neighborhoods

are chosen to provide better environments for people.

2. Renovation

Not only construct houses, renovation services also available with current trends, customer

needs and bursting with innovation and creativity.

3. Home Interior Design

The scope of each residential interior design project is tailored specifically to the individual.

The clients will work together with our team to create high quality design and satisfies

customers needs.

4. Building Maintenance


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5. Repair Services and Concrete Repair Services

A proper concrete repair is necessary for safety of buildings and houses. Besides, repair

methods for concrete are based on proven methods and techniques. We focus on quality in

each project received.

2.2 Company Ownership

Berjaya Bina Sdn. Bhd is a Limited Liability Company registered in the state of Pahang. The company

is exclusively owned by Miss Salwa Izwani (20%), Miss Siti Meriam (20%), Miss Noreha (20%), Miss

Shaira (20%) and Miss Zulaiha (20%). The company is expecting to alter to a Class C corporation

chartered in Pahang in 2016. This will create greater investment opportunities through the acquisition of

investment capital from a limited number of shareholders.


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3.0 Services

Berjaya Bina offers a comprehensive package of services designed to allow the client to work with

one of our managers and create a project the company can carry forward to completion. Some of the

myriad services Berjaya Bina offers are:

1. Residential construction

2. Renovations

3. Home interior designs

4. Building maintenance

5. Repair services


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4.0 Market Analysis

The total market demand in Pahang residential constructions industry sector is huge. The requirement

for new houses is expected to be about 709,400 units of which about 6.3%. Besides, the private sector is

expected to supply 72.1% of the total requirement. This high percentage of requirement helps new

entrants company to start their businesses.

Berjaya Bina Sdn. Bhd has focus on the development demand for both rural and urban located

properties. In addition to current changes of administrations location in Kuantan city, then the company

relies on government projects as main resources. Our company will focus more on projects that will

provide us with highest profit, in other words those clients desiring houses construction.

4.1Market Segmentation

Berjaya Bina Sdn. Bhd will focus on two market sub-segments of the residential constructions industry

t Th fi t ill b th b d l j t t d th d ill b th t


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2. Government Contract Projects

Government contract projects are helpful in stabilize our companys financial, with contribution of

approximately quarter of revenues. Even though the difficulties arise to capture government attentions,

but this segment is attractive due to its stability. Contracts from these sources are not dependent on the

current market conditions and will provide revenue even when economic goes down. Therefore,

economic forces play no roles in this segment.

Other than residential constructions, several categories that we will serve including renovations,

home interior designs, building maintenances, repair services and concrete repair services. These

categories contributed 60% of all revenues. Besides, renovations are the fastest growing segment of all

the clients requiring our services. In contrast to governments residential contract, two categories which

are renovations and home interior designs totally relying on economic forces. The demands will increase

if an economic turns up and decrease when economic turndown.


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The table below outlines the total market potential of the six targeted market segments in the served

markets (in percentage of revenues).


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4.2Target Market Selection

Berjaya Bina Sdn Bhd primarily focuses on its target market, the residential construction projects,

through direct selling via its various relationship and referral networks. In addition, a significant amount

of investment will be made in advertising to promote product awareness. An exhibition in few malls

such as East Coast Mall, Megamall, Kuantan Parade and Kuantan Plaza helps promote the sales. Other

than that, Berjaya Bina sponsors its potential clients travel costs to constructions site. This is the

opportunity to prove the capabilities of our products, educate the potential client, and establish a

relationship

Since office building construction has the highest average profit margin, we will focus most of our

marketing and servicing toward these customers. Usually these clients require the largest projects in

scope, land use, and cost. In addition, they tend to be the most sensitive to completion times. Therefore,

we plan to accommodate these clients through a well-established and expeditious permitting program,


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4.3 Buyer Behavior Analysis

The factors that caused changes in this industry are its currency and political factors. During elections,

the demand for residential construction especially low-cost and medium-cost construction is increase.

Moreover, stability in economic forces encourages an investment from foreign companies that increase

the demand.

4.4Competitor Analysis

Currently, Berjaya Bina faces approximately 93 competitors in Kuantan. The top player is Koh Lek

Construction & Renovation Sdn. Bhd and has been in the market for 40 years. Their name is very well


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5.0 Marketing Plan

Description of Services

Known for country living and views of the Panorama Mountains with all of the city conveniences,

Indera Mahkota is conveniently located off of Sultan Haji Ahmad Shah Road near the Sungai Lembing.

Berjaya Bina Sdn. Bhd is offering home buyers many of the facilities found in higher-priced homes

without sacrificing comfort or functionality-and first-time buyers can relate to the prices.

Features and Benefits

Homes range from 3,419 to 6,828 square feet with builder design, or bids on your own home design are

provided free of charge. For a Single Story Bungalow, buildup area, 4300sqft, land area 8000sqft.We are

provided 4 master sized bedrooms with 4 attached bathrooms.1 small room with attached bathroom.

Besides, wet kitchen, dry kitchen, and dining room with a large hall which can be converted into 2

separate halls. Wet kitchen with all built in furniture included stove, cooker hood and oven. There is a

porch which can easily fit more than 4 cars. Where peace-of-mind living is concerned, reliable security


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The benefits in buying a new home from Berjaya Bina Sdn. Bhd come down to three basic benefits -

QUALITY, EFFICIENCY, and AFFORDABILITY.

Quality

Quality is provided by the craftsmanship and one-to-one customer relationship with the owners. In

addition to the personal relationship, the new home buyers will have the opportunity to choose from

high-quality standard features or enhance their home further with products of their choosing.

The quality of the finished product and the care the home can be seen again at closing, the homes are

professionally cleaned. The windows are washed and any paint splatter is removed. The carpets are

groomed. All the cabinets are cleaned and polished. The floors are hand scrubbed. The new homebuyers

can unpack and enjoy their new home immediately.

Quality does not end when the buyers move-in. The new home owners have a one year complete

warranty on their home. Complete means any problems they encounter with their new home from the


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Efficiency

The Efficiency of the home will be noticed on the owner electrical bill. The increased protection

throughout the house and weather proofing will provide the new home owners with an Energy Efficient

home to enjoy throughout the year. It will also decrease their cooling cost throughout the year.

Affordability

Berjaya Bina Sdn. Bhd strives to keep its overhead cost to a minimum in order to offer quality new

homes from RM336, 000 to RM707, 000 price ranges. These prices include land with views of the town.

We cut our costs and pass the savings onto the home buyers.

5.1 Marketing Strategies

Location/Distribution

Berjaya Bina Sdn. Bhd is a home-based business and renovation. We meet with customers and promote


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place to live as soon as they were transferred, spent four days looking for a house, came back and

decided to wait until we could build a home for them because they felt the construction of the home and

the features offered for the price surpassed other builders offering home in the same price range

Promotional Strategies

Packaging and Customer Service

At all times during the construction phase, the job site is kept tidy. Lumber and materials are neatly

stacked and organized, the floors are swept, nails are picked up, and garbage kept in a container and

removed weekly. The builders have a dress code that includes clean jeans with no holes and a company

shirt. At closing, the homes are professionally cleaned. The windows are washed and any paint splatter

is removed. The carpets are groomed. All the cabinets are cleaned and polished. The floors are hand

scrubbed. The new home buyers can unpack and enjoy their new home immediately.

One week after closing, a phone call is made to the buyers from the owners to see if there is any follow-


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Advertising

Most of the advertising of the home is done by our real estate broker and the cost is included as part of

the commission. As part of the commission, our homes are featured in the web page

www.BerjayaBina.com. Berjaya Bina Guide book and include flyers on the business and homes. Open

houses are held two to three times a month.

In addition, we have 4X6 signs advertising home sites with the company information. We will be

purchasing three additional signs over the next year. We are purchasing letter head, cards, brochures,

and folders with the company logo for Marketing Packets.

An exhibition in few malls such as East Coast Mall, Megamall, Kuantan Parade and Kuantan Plaza help

to promote the sales. Other than that, Berjaya Bina sponsors its potential clients travel costs to

constructions site.

5.2 Sales Strategy
http://www.berjayabina.com/http://www.berjayabina.com/http://www.berjayabina.com/


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5.3 Sales Forecast

Sales forecasts are based on conservative estimates. We expect sales in 2012 to be lower than previously

planned as we adjust to a new client base. After that, we expect sales growth to be much higher as we

gain market share.

Table: Sales Forecast

Sales Forecast

2012 2013 2014

Sales RM RM RM

Residential

construction$368,466.00 $480,457.00 $543,281.00

Renovations $189,642.00 $232,576.00 $289,766.00

Home interior

designs23, 564 $32,078.00 $35,872.00


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Residential

construction

$276,797.00 $312,239.00 $348,908.00

Renovations $102,564.00 $189,880.00 $230,873.00

Home interior

designs$10,982.00 $18,986.00 $25,987.00

Building

maintenance$190,872.00 $228,209.00 $292,480.00

Repair services $56,723.00 $70,109.00 $89,124.00

Concrete repair

services$56,090 $67,902.00 $92,989.00

Subtotal Direct

Cost of Sales $694,028.00 $887,325.00 $1,080,361.00

Chart: Sales Monthly

Sales Monthly


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6.0 Management Summary

Berjaya Bina Sdn Bhd management consist of Miss Salwa Izwani, Miss Siti Meriam, Miss Noreha, Miss

Shaira, and Miss Zulaiha. Miss Salwa Izwani and Miss Shaira as a Chief Officer Executive will

concentrate on client relation and also dealing with overall management of the company. Miss Siti

Meriam and Miss Noreha will be the companys General Project Manager. A general project manager is

responsible to coordinate all project management and concentrating on cost controls, dealing with

suppliers for material, day-to-day project supervision, and labor relations. General project manager will

be assist by project engineer and site supervisor. Miss Zulaiha is responsible for company financial

elements. She handling invoicing, claim, and organising the financial and accounting affairs.

Berjaya Bina is aiming to expand its personnel by adding a number of jobs parallel with the increasing

of the number of projects. The list of jobs superintendents are:

Site foreman

Procurement executive

Contract executive


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6.1 Personnel Plan

The personnel plan will be focused on the number of staffs we will employ. The table on the next page

gives our estimate of labor costs.

Personnel Plan

2011 2012 2013 2014 2015

CEO RM 72,000 RM 72,000 RM 72,000 RM 72,000 RM 72,000

General Project Manager RM 72,000 RM 72,000 RM 72,000 RM 72,000 RM 72,000

Financial Manager RM 36,000 RM 36,000 RM 36,000 RM 36,000 RM 36,000

Job Supervisor 0 0 RM 14,000 RM 14,000 RM 14,000

General employees RM 80,000 RM 80,000 RM 100,000 RM 100,000 RM 100,000

Total People 15 15 20 20 20

Total Payroll RM 260,000 RM 260,000 RM 294,000 RM 294,000 RM 294,000


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7.0 Operational plan

It is a design production system to minimize waste of materials, time, and effort in order to generate the

maximum possible amount of value. For Berjaya Bina Sdn Bhd, costs and specifications will be a big

part of plan.

7.1General approach to operations

Services

i) Berjaya Bina Sdn Bhd will start to do construction works after get application from customer.

ii) Renovation.

Berjaya Bina Sdn Bhd was Tiling,Electrical, Plumbing,Plaster Ceiling,Suspended

Ceiling,Partition,Divider,Painting,Metal,Aluminum work,Custom-made Furniture,Laminate & Teak

Wood Flooring, Wall To Wall Carpet,Wall Covering,Acoustic Wall, and Soft Furnishing.

Business hours


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Facilities

Berjaya Bina Sdn Bhd has committed to having the most technologically advanced available. This allows

us to produce the highest quality mix at the highest production rates

Equipment

Equipment cost ( RM )

Office 150,400

Service equipment and

tools 126,000

Transportation 130,000

Berjaya Bina Sdn Bhd rents steel plates, steel or aluminum trench shoring products, temporary construction

fencing, crane, steel interlocking sheet pile, H-pile, and steel pipe.


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Automatically covered by a special Insurance Scheme that insures the Construction Personnel

against death and accidents.

Builder Risk Insurance is obtained for each new home site in case of loss of property or dwelling

prior to being sold to the home buyer.

Employers must follow special regulations and ethics in construction site.

Berjaya Bina Sdn Bhd only works on related zoning and building code.

Copyrights of any related internal informant and name of company is illegal.

Personnel

Berjaya Bina Sdn Bhd has 15 employees

High-value added skilled labour relevant to the needs of the technology applied in Construction

techniques

Findings the local or foreign employees from job agencies, make advertisement in newspaper or


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These records include accounts payables, accounts receivables, lien releases, financial reports,

balance sheets, income statements, payroll, job costing, retention, collections, bonding, banking,

month-end close-out, bank reconciliations and cash-flow projections

Contracts.

These records include all contracts you have entered into, equipment leases, purchase

agreements, and rent agreements

8.0 Financial Plan

The following sections are the financial projections for Berjaya Bina commercial Contractors for the

next three years. These tables represent a conservative estimate of revenues, expenses, and growth.

We do not anticipate a significant increase in profits until 2006, as we will need time to penetrate our

new market. We plan on basing dividend payouts on overall performance and health of the company

and may decide to retain such earnings for future growth.


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Table: General Assumptions

General Assumptions

2011 2012 2013

Plan Month 1 2 3

Current Interest Rate 10.00% 10.00% 10.00%

Long-term Interest Rate 10.00% 10.00% 10.00%

Tax Rate 30.00% 30.00% 30.00%

Other 0 0 0


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8.2 Break-even Analysis

Our break even analysis is based on average monthly fixed costs, which in turn, is based on

historical figures, plus our average price per product. This estimate is also based on experience,

however because of our wide range of potential projects, its accuracy lessens. The average variable

costs are based on industry standards.

Chart: Break-even Analysis


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Monthly Revenue Break-even $64,451

Assumptions:

Average Percent Variable Cost 72%

Estimated Monthly Fixed Cost $18,043

8.3 Projected Profit and Loss

The following is our best estimate of future revenues and costs, based on current market trends, past

performance, and perceived revenue of our new target market. Readers will note that overall profits

are quite low for 20012-20014. This is because we estimate we will be paying higher labor costs

immediately and the overall revenues will lag somewhat. We will also have fewer initial clients as

we attempt to exert our presence in the commercial contracting market. However, we have

anticipated this by buffering ourselves with sufficient cash reserves, and we estimate a significant

increase in profitability within five years.


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Chart: Profit Monthly

Chart: Profit Yearly


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Chart: Gross Margin Monthly

Chart: Gross Margin Yearly


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Table: Profit and Loss

Pro Forma Profit and Loss

2012 2013 2014

Sales $743,736 $880,434 $996,495

Direct Cost of Sales $535,525 $648,586 $734,085

Other Costs of Sales $0 $0 $0

Total Cost of Sales $535,525 $648,586 $734,085

Gross Margin $208,211 $231,848 $262,410

Gross Margin % 28.00% 26.33% 26.33%

Expenses


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Total Operating Expenses $216,520 $218,020 $251,600

Profit Before Interest and Taxes ($8,309) $13,828 $10,810

EBITDA ($8,309) $14,828 $11,810

Interest Expense $3,498 $2,964 $2,564

Taxes Incurred $0 $3,259 $2,474

Net Profit ($11,807) $7,605 $5,773

Net Profit/Sales -1.59% 0.86% 0.58%

8.4 Projected Cash Flow

We do not expect to have any serious cash flow problems in the future. We plan on having all short-

term debts paid off in 2007 and long-term debts by 2012. The declining cash account during the

period covered by this plan, and is to be expected as we build our new customer base. Once we reach


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Cash from Operations

Cash Sales $483,428 $572,282 $647,722

Cash from Receivables $248,641 $301,751 $343,339

Subtotal Cash from Operations $732,069 $874,033 $991,061

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0

New Current Borrowing $0 $0 $0

New Other Liabilities (interest-free) $0 $0 $0

New Long-term Liabilities $0 $0 $0

Sales of Other Current Assets $0 $0 $0

Sales of Long-term Assets $0 $0 $0

New Investment Received $0 $0 $0

Subtotal Cash Received $732,069 $874,033 $991,061


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Chart: Cash

8.5 Projected Balance Sheet

The following is a presentation of assets and liabilities. Because we have low debt, our net worth is

higher than other comparable companies.


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Table: Balance Sheet

Pro Forma Balance Sheet

2004 2005 2006

Assets

Current Assets

Cash $17,440 $13,435 $10,986

Accounts Receivable $34,824 $41,224 $46,659

Inventory $35,509 $72,006 $76,162

Other Current Assets $37,991 $37,991 $37,991

Total Current Assets $125,764 $164,656 $171,797

Long-term Assets

j i Sd hd


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Current Borrowing $15,000 $13,000 $11,000

Other Current Liabilities $21,677 $21,677 $21,677

Subtotal Current Liabilities $62,252 $94,539 $96,908

Long-term Liabilities $16,639 $14,639 $12,639

Total Liabilities $78,891 $109,178 $109,547

Paid-in Capital $0 $0 $0

Retained Earnings $71,101 $59,294 $66,899

Earnings ($11,807) $7,605 $5,773

Total Capital $59,294 $66,899 $72,671

Total Liabilities and Capital $138,185 $176,077 $182,218

Net Worth $59,294 $66,899 $72,671

B j Bi Sd Bhd


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Table: Ratios

Ratio Analysis

2004 2005 2006 Industry

Profile

Sales Growth 30.03% 18.38% 13.18% 4.60%

Percent of Total Assets

Accounts Receivable 25.20% 23.41% 25.61% 24.47%

Inventory 25.70% 40.89% 41.80% 26.16%

Other Current Assets 27.49% 21.58% 20.85% 37.01%

Total Current Assets 91.01% 93.51% 94.28% 87.64%

Long-term Assets 8.99% 6.49% 5.72% 12.36%

Total Assets 100.00% 100.00% 100.00% 100.00%

B j Bi Sd Bhd


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Selling, General & Administrative

Expenses

29.58% 25.47% 25.75% 7.62%

Advertising Expenses 0.00% 0.00% 0.00% 0.24%

Profit Before Interest and Taxes -1.12% 1.57% 1.08% 1.94%

Main Ratios

Current 2.02 1.74 1.77 1.93

Quick 1.45 0.98 0.99 0.94

Total Debt to Total Assets 57.09% 62.01% 60.12% 4.32%

Pre-tax Return on Net Worth -19.91% 16.24% 11.35% 56.40%

Pre-tax Return on Assets -8.54% 6.17% 4.53% 9.90%

Additional Ratios 2004 2005 2006

Net Profit Margin -1.59% 0.86% 0.58% n.a

Return on Equity -19.91% 11.37% 7.94% n.a

B j Bi Sd Bhd


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Debt Ratios

Debt to Net Worth 1.33 1.63 1.51 n.a

Current Liab. to Liab. 0.79 0.87 0.88 n.a

Liquidity Ratios

Net Working Capital $63,512 $70,117 $74,889 n.a

Interest Coverage -2.38 4.67 4.22 n.a

Additional Ratios

Assets to Sales 0.19 0.20 0.18 n.a

Current Debt/Total Assets 45% 54% 53% n.a

Acid Test 0.89 0.54 0.51 n.a

Sales/Net Worth 12.54 13.16 13.71 n.a

Dividend Payout 0.00 0.00 0.00 n.a

Appendix


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pp

Page 1

Table: Sales Forecast

Sales Forecast

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Sales

New

Construction

0% $12,170 $13,170 $17,909 $19,539 $21,777 $21,410 $27,615 $28,966 $28,366 $23,163 $18,842 $14,635

Repair work 0% $12,777 $14,555 $16,909 $19,539 $20,285 $21,410 $25,615 $33,111 $28,366 $23,163 $18,842 $15,842

Alteration work 0% $14,222 $12,170 $16,909 $19,539 $20,285 $21,410 $25,615 $30,861 $28,366 $23,163 $18,842 $14,378

Total Sales $39,169 $39,895 $51,727 $58,617 $62,347 $64,230 $78,845 $92,938 $85,098 $69,489 $56,526 $44,855

Direct Cost of

Sales


New

Construction

$8,580 $9,285 $12,626 $13,775 $15,353 $15,094 $19,469 $20,421 $19,998 $17,372 $13,849 $10,976

Repair work $9,008 $10,261 $11,921 $15,338 $15,924 $15,094 $18,059 $23,343 $21,275 $16,330 $13,284 $11,169

Alteration work $10,027 $8,580 $11,921 $15,338 $15,924 $15,094 $18,059 $21,757 $21,275 $16,330 $13,284 $10,136

Appendix


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pp

Page 2

Subtotal Direct

Cost of Sales

$27,614 $28,126 $36,468 $44,451 $47,200 $45,282 $55,586 $65,521 $62,547 $50,032 $40,416 $32,281

Appendix


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Page 3

Table: Personnel

Personnel

Plan


Miss Salwa

Izwani, CEO

0

%$6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000

Miss Shaira

Anisa,

General

Project

Manager

0

%$6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000

Miss.Noreha,

Financial

Maneger

0

%$3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000

Miss, Siti

Meriam

0

%$3,000 $6,000 $6,000 $3,000 $3,000 $3,000 $6,000 $6,000 $6,000 $6,000 $3,000 $3,000

Appendix


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Page 4

Office

Manager

Miss

Zulaikha

Job

Supervisor

0

%

Temporary

employees

0

%

Total People 15 15 15 15 15 15 15 15 15 15 15 15

Total

Payroll

$21,66

67

$21,66

67

$21,66

67

$21,66

67

$21,66

67$21,6667

$21,666

7

$21,66

67$21,6667 $21,6667

$21,666

7$$21,6667

Appendix


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Page 5

Table: General Assumptions

General

Assumptions


Plan Month 1 2 3 4 5 6 7 8 9 10 11 12

Current Interest

Rate

10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%

Long-term

Interest Rate

10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%

Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%

Other 0 0 0 0 0 0 0 0 0 0 0 0

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Page 6

Table: Profit and Loss

Pro Forma

Profit and

Loss


Sales $39,169 $39,895 $51,727 $58,617 $62,347 $64,230 $78,845 $92,938 $85,098 $69,489 $56,526 $44,855

Direct Cost of

Sales

$27,614 $28,126 $36,468 $44,451 $47,200 $45,282 $55,586 $65,521 $62,547 $50,032 $40,416 $32,281

Other Costs

of Sales

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Cost of

Sales

$27,614 $28,126 $36,468 $44,451 $47,200 $45,282 $55,586 $65,521 $62,547 $50,032 $40,416 $32,281

Gross Margin $11,555 $11,769 $15,259 $14,166 $15,147 $18,948 $23,259 $27,417 $22,551 $19,457 $16,110 $12,574

Gross Margin

%

29.50% 29.50% 29.50% 24.17% 24.29% 29.50% 29.50% 29.50% 26.50% 28.00% 28.50% 28.03%

Appendix


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Page 7

Expenses

Payroll $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000

Sales and

Marketing

and Other

Expenses

$200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200

Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Rent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Utilities $110 $110 $110 $110 $110 $110 $110 $110 $110 $110 $110 $110

Insurance $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300

Payroll Taxes 15% $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250

Other $0 $200 $500 $0 $500 $0 $0 $500 $500 $0 $0 $0

Total

Operating

Expenses

$17,860 $18,060 $18,360 $17,860 $18,360 $17,860 $17,860 $18,360 $18,360 $17,860 $17,860 $17,860

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Page 8

Profit Before

Interest and

Taxes

($6,305) ($6,291) ($3,101) ($3,694) ($3,213) $1,088 $5,399 $9,057 $4,191 $1,597 ($1,750) ($5,286)

EBITDA ($6,305) ($6,291) ($3,101) ($3,694) ($3,213) $1,088 $5,399 $9,057 $4,191 $1,597 ($1,750) ($5,286)

Interest

Expense

$320 $314 $309 $304 $299 $294 $289 $284 $279 $274 $269 $264

Taxes

Incurred

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Profit ($6,625) ($6,605) ($3,410) ($3,999) ($3,512) $794 $5,111 $8,773 $3,912 $1,323 ($2,019) ($5,550)

Net

Profit/Sales

-16.92% -16.56% -6.59% -6.82% -5.63% 1.24% 6.48% 9.44% 4.60% 1.90% -3.57% -12.37%

Appendix


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Page 9

Table: Cash Flow

Pro Forma

Cash Flow


Cash

Received

Cash from

Operations

Cash Sales $25,460 $25,932 $33,623 $38,101 $40,526 $41,750 $51,249 $60,410 $55,314 $45,168 $36,742 $29,156

Cash from

Receivables

$11,579 $12,035 $13,718 $14,101 $18,185 $20,559 $21,843 $22,651 $27,760 $32,437 $29,602 $24,170

Subtotal

Cash from

Operations

$37,038 $37,967 $47,340 $52,202 $58,710 $62,309 $73,093 $83,061 $83,074 $77,605 $66,344 $53,326

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Page 10

Additional

Cash

Received

Sales Tax,

VAT,

HST/GST

Received

0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Current

Borrowing

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Other

Liabilities

(interest-

free)

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Long-

term

Liabilities

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales of

Other

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

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Current

Assets

Sales of

Long-term

Assets

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New

Investment

Received

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal

Cash

Received

$37,038 $37,967 $47,340 $52,202 $58,710 $62,309 $73,093 $83,061 $83,074 $77,605 $66,344 $53,326

Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Expenditures

from

Operations

Cash $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000

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Page 12

Spending

Bill

Payments

$25,998 $18,420 $32,638 $49,549 $56,314 $53,631 $47,117 $70,403 $79,521 $62,130 $39,185 $32,750

Subtotal

Spent on

Operations

$40,998 $33,420 $47,638 $64,549 $71,314 $68,631 $62,117 $85,403 $94,521 $77,130 $54,185 $47,750

Additional

Cash Spent

Sales Tax,

VAT,

HST/GST

Paid Out

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Principal

Repayment

of Current

Borrowing

$400 $500 $400 $400 $500 $400 $400 $400 $400 $400 $400 $400

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

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Page 13

Liabilities

Principal

Repayment

Long-term

Liabilities

Principal

Repayment

$200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200

Purchase

Other

Current

Assets

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Purchase

Long-term

Assets

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal

Cash Spent

$41,598 $34,120 $48,238 $65,149 $72,014 $69,231 $62,717 $86,003 $95,121 $77,730 $54,785 $48,350

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Page 14

Net Cash

Flow

($4,560) $3,847 ($898) ($12,947) ($13,304) ($6,922) $10,375 ($2,942) ($12,048) ($125) $11,559 $4,976

Cash

Balance

$35,868 $39,715 $38,816 $25,870 $12,566 $5,644 $16,020 $13,078 $1,030 $905 $12,464 $17,440

Appendix


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Page 15

Table: Balance Sheet

Pro Forma

Balance

Sheet

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

Assets Starting

Balances

Current

Assets

Cash $40,428 $35,868 $39,715 $38,816 $25,870 $12,566 $5,644 $16,020 $13,078 $1,030 $905 $12,464

Accounts

Receivable

$23,157 $25,288 $27,215 $31,602 $38,017 $41,654 $43,575 $49,327 $59,204 $61,228 $53,113 $43,295

Inventory $43,220 $30,376 $30,939 $40,114 $48,896 $51,920 $49,810 $61,144 $72,073 $68,802 $55,035 $44,458

Other

Current

$37,991 $37,991 $37,991 $37,991 $37,991 $37,991 $37,991 $37,991 $37,991 $37,991 $37,991 $37,991

Appendix


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Page 16

Assets

Total

Current

Assets

$144,796 $129,522 $135,860 $148,524 $150,774 $144,131 $137,020 $164,482 $182,347 $169,051 $147,044 $138,207

Long-term

Assets

Long-term

Assets

$20,421 $20,421 $20,421 $20,421 $20,421 $20,421 $20,421 $20,421 $20,421 $20,421 $20,421 $20,421

Accumulated

Depreciation

$8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000

Total Long-

term Assets

$12,421 $12,421 $12,421 $12,421 $12,421 $12,421 $12,421 $12,421 $12,421 $12,421 $12,421 $12,421

Total Assets $157,217 $141,943 $148,281 $160,945 $163,195 $156,552 $149,441 $176,903 $194,768 $181,472 $159,465 $150,628

Liabilities

and Capital

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

Appendix


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Page 17

Current

Liabilities

Accounts

Payable

$25,400 $17,352 $30,995 $47,669 $54,518 $52,087 $44,782 $67,733 $77,424 $60,817 $38,086 $31,868

Current

Borrowing

$20,000 $19,600 $19,100 $18,700 $18,300 $17,800 $17,400 $17,000 $16,600 $16,200 $15,800 $15,400

Other

Current

Liabilities

$21,677 $21,677 $21,677 $21,677 $21,677 $21,677 $21,677 $21,677 $21,677 $21,677 $21,677 $21,677

Subtotal

Current

Liabilities

$67,077 $58,629 $71,772 $88,046 $94,495 $91,564 $83,859 $106,410 $115,701 $98,694 $75,563 $68,945

Long-term

Liabilities

$19,039 $18,839 $18,639 $18,439 $18,239 $18,039 $17,839 $17,639 $17,439 $17,239 $17,039 $16,839

Total

Liabilities

$86,116 $77,468 $90,411 $106,485 $112,734 $109,603 $101,698 $124,049 $133,140 $115,933 $92,602 $85,784

Appendix


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Page 18

Paid-in

Capital

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Retained

Earnings

$71,101 $71,101 $71,101 $71,101 $71,101 $71,101 $71,101 $71,101 $71,101 $71,101 $71,101 $71,101

Earnings $0 ($6,625) ($13,231) ($16,641) ($20,640) ($24,152) ($23,357) ($18,247) ($9,474) ($5,561) ($4,238) ($6,257)

Total Capital $71,101 $64,476 $57,870 $54,460 $50,461 $46,949 $47,744 $52,854 $61,627 $65,540 $66,863 $64,844

Total

Liabilities

and Capital

$157,217 $141,943 $148,281 $160,945 $163,195 $156,552 $149,441 $176,903 $194,768 $181,472 $159,465 $150,628

Net Worth $71,101 $64,476 $57,870 $54,460 $50,461 $46,949 $47,744 $52,854 $61,627 $65,540 $66,863 $64,844

Documents

SALWA Business Plan