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10 EXECUTIVE SUMMARY
This business plan includes the fundamental for the introduction of childcare service via
online as well as the strategies that been outlined in order to attract clientele in Malaysia. The
analysis of competitive environment and opportunity as well as strength and weakness of the
industry and the company enable the management team to propose dynamic and constructive
strategies for childcare services product to be introduced in the market as well as to fulfil
company’s objectives and strategic mission. eMyBabysitter.com will be the pioneer company
that provide babysitter services information database via online in the childcare sector.
Moreover, the business plan also includes information on the analysis of the market and the trend
that aid the company to select the targeted clientele and devise plans to attract and penetrate the
market more tactically and well planned. The business plan also outlines the product description
and competitive advantage that the company posses for them to penetrate the childcare service
sectors. Other than that, the management team expecting productive revenue from the business.
1.1. Objective
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eMyBabysitter.com Business Plan
1.2.Mission
1.2.1.To become the pioneer in providing childcare service via online
1.2.2.To establish eMyBabysitter.com as the market leader in childcare service sector
1.2.3.eMyBabysitter.com form can be a trendsetting firm in providing childcare service
in Malaysia.
1.3.Key to Success
Other than that, the accomplishment and prosperity development of our company is
dependent on our ability to:-
1.3.1.To identity the fine details of client requirements in acquiring babysitter services
such as special skills, experiences with children, background of the babysitter and
others in order for them to select the right babysitter for their children.
1.3.2.To ensure that the babysitter’s database is on par and been updated with all the
required information about the babysitter and nannies that available and the process
of choosing the help that the parents need is
1.3.3.To indentify the market and profiling the type of client that needs babysitter
services.
20 COMPANY SUMMARY
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eMyBabysitter.com Business Plan
2.1.Start-up Summary
The enterprise is a new venture and pioneer in Malaysia in providing babysitter
services via online. Therefore, the cost and expenses of starting the company includes
rentals, utility deposits, telecommunication costs, furniture cost, cost of designing
website and maintenance, the advertisement cost that includes placing advertisement in
electronic media and mass media, printing business cards, flyers, stationery and
equipments, and other relevant expenses is total sum of RM509, 418.00. Moreover, our
company also planned to about RM15, 750 for marketing and advertisement. This is
because the company is pioneer in online services for babysitter in Malaysia and
therefore the establishment need to create massive awareness among the consumers
regarding the business. Other than that, the firm also needs to invest in gaining
competitive technology in order to ensure efficiency and effectiveness in maintaining the
online site as well as the database. This is to ensure that our targeted clients will not be
facing technical problems and difficulties when they are surfing our website. This is
important because the business main operation is conducted via online even though the
firm is brick and clicks business model. These cost and expenses will be financed by the
financial loan that the enterprise gaining from Public Bank Berhad.
The following Chart 1 is showing the start up cost for eMyBabysitter.com
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eMyBabysitter.com Business Plan
Adminstration Cost
Legal fees 2500
Association Fees 500
Licence Fees 700
Signboard Licences Fees 1250
Seasonal Parking Fees 1200
Professional Accountant 1200
Insurance 6000
Safety Building Inspection Fees 1200
Stationary 3,000
Technology Cost
Setting up Website 3500
Domain 500
Maintenance Fee 800
Web Hosting 1200
IPS Fees 4800
Software Cost
MYOB 500
SQL Server 1,300
MS Professional 2007 1,050
140500
Sales and Marketing Cost
Advertising 4500
Printing Cost 3550
distrubution fees 1,000
Marketing materials 4,000
Data gathering cost 2,700
15750
Salary and Benefits Cost
2 admin clerk 24000
1 infant and Adolesent therapist 30000
4 customer service 57600
1 receiptionist 9000
1 managers 36,000
2 assustant manager 36000
EPF payment 24,618
373,468
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eMyBabysitter.com Business Plan
3.1.1.Type of Membership
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eMyBabysitter.com Business Plan
There are 3 type of membership that the firm is offering to the clientele
comprises of Gold Membership, Silver Membership and Basic Membership.
As for Gold Membership, the client will have pay RM 120 yearly to gain
access to all the benefit and advantages from our website. The membership is valid
for 1 year and clients can opt out to renew or cancel their subscription when the
membership expires. For the clients benefit, our team will be efficiently keep up to
date with the members and automatic email will be sent to our clients as friendly
reminder regarding the subscription status and provide our clients with option either
renew or cancel the membership. Other than that, the Gold Membership package
includes advantages such as full access to all the database of available babysitters
and nannies, complete criminal background check report will shown on as part of
information on the babysitter profile, previous employer’s report on the babysitter
also can be viewed and other benefits.
Furthermore, Silver Membership is a 6 month subscription whereby the clients
will have to purchase by paying RM 95.00 only. The clients can gain access to our
database for 6 months. The clients can gain access to the babysitter and hired helps
database and obtain all the relevant information. The clients can use this information
to contact and set up interview with the chosen babysitters. The clients also had
given benefits such as preliminary background check on the babysitter, full access
to all the babysitters that available in the system and other benefits.
Other than that, our third membership type is Basic Membership whereby the
clients pay RM 65.00 as subscription fee and the membership is valid for 1 month
only. This is membership offers our clients access to babysitter and nanny
information database.
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eMyBabysitter.com Business Plan
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eMyBabysitter.com Business Plan
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eMyBabysitter.com Business Plan
and this cause the parent a lot of hindrances in their quest to provide their child
with best care when they are at work. When their child is in the hand of
responsible caretaker, the parents can concentrate more comprehensively in their
work. Other than that, we also created database for all the new mothers that need
help in looking after their new born baby as well as themselves. We have
managed compile database consist of midwifes that can cater to the new mothers.
20 SITUATION ANALYSIS
2.1.Swot Analysis
2.1.1.Strength
One of the most competitive advantage that emybabysitter.com has is that
the firm is the pioneer in Malaysia to operate as babysitter service provider via
online and therefore there is no direct competitors currently. Currently most
agencies are adapted to brick and mortar business model concept and offering their
service from offices. However, our firm is based on brick and click business
concept whereby most of our operation is based via online. Other than that, our
company also has efficient human resources and child therapist that can aid our
customers regarding their request and needs related to the babysitter that they want
for their children. This is one of the advantages that the company has over other
competitors. Moreover, our firm also striving in creating brand and image as the
best service provider for customers in helping them to locate the best babysitter
service. This is achieved by providing updated database of information regarding
the babysitters that available in all the locations. Moreover, our price for obtaining
babysitter is comparatively cost effective than other agencies and independence
babysitters. Other than that, our service also considered fast, reliable and efficient
whereby the clients do not face problems such as depending on only one babysitter,
could not find babysitter in time of emergency, and others.
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eMyBabysitter.com Business Plan
2.1.2.Weakness
Since in Malaysia, these types of services are not common, it may cause
certain setbacks to the company. This is because there is possibility that parents
will not choose to use our company service to gain information about babysitter
availability. Other than that, agencies that offers babysitter services via online is
often popular in countries such as New Zealand, America, Australia , Canada and
other developed western countries and had become trend for parents and guardian
to choose babysitter via online rather than go to maid agencies. However in
Malaysia, this business is a very new and still hasn’t become trend setting among
parent. This can become a hindrance for our firm to develop and become
successful among the clientele.
2.1.3.Opportunity
The firm had high rate of opportunity to become leader in the field since
the company is one of the first in Malaysia to offer babysitter services via online.
Moreover, there company also does not face direct competitors. Furthermore, as
for 2008 economy downturn had forced many working parents to revamp their
lifestyles and the ways to handle their household budget. Many parents started to
seek for alternative solution in providing care for their children due to cost
increase in acquiring foreign maids. Therefore, the firm has dazzling future to
develop to become successful operation in Malaysia because of the economy
crisis. The legal issues between Malaysia government and Republic Indonesia
regarding the maid issues and Indonesia government imposing ban that created
barriers for Indonesian maids to be recruited also lead to massive opportunity for
local housewives and babysitters to expand their services. This will increase our
company opportunity as well to shine and penetrate the local childcare service
market.
2.1.4.Threats
The company is facing competition from foreign maid services. In
Malaysia, the foreign maid service is highly in demand and therefore our firm will
face competition from these agencies because most parents may choose to employ
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eMyBabysitter.com Business Plan
foreign maid rather than hiring babysitters or nannies. Another threat that the
company will probably face is economy crisis whereby people might choose
relatives to take care of their children instead of hiring babysitters. Another threat
that the company can face is internal political power struggle, transition of ruling
power and others. These dilemmas can affect launching of our company in certain
countries such as Thailand, Philippine and other even though there is vast market
opportunity if our management planned to expand our services to other countries
as well.
2.2.Competitive Comparison
The company faces competition from other alternative services such as individual
babysitters, foreign maid agency and childcare centres. Most of this facilities only
manage to provide child care services but
The company has tremendous advantage in the service industry especially in
childcare services. This is because our company can be considered as pioneer in leading
as online babysitter service provider in Malaysia. However, the firm mainly facing
competitive from foreign maid agency, individual babysitter services and daycares
centres. However, there are vast advantages of our company compared to these agencies
and daycares centres. One of the advantages is cost effective for the clients. The parents
and guardians did not have to spend hefty amount of money to the agencies and daycares
centres. The firm only charge small amount of fee to the parents to become member and
gain access to huge database of babysitters. Moreover, the firm also will be providing
huge database of information of babysitter that enable the clients to choose their
preferred babysitter.
Other than that, one of the most important element is the customers can gain
babysitter services without leaving house and seeking agency to hire babysitter and only
by click of mouse. Our services also been customized whereby we cater for those
children that need special care such as autisms children, physically-challenged children
and others.
Our database is created uniquely that when parents basically enter the information
and preference that they need for the babysitter and our system will generate list of
available babysitter according to the preferences.
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eMyBabysitter.com Business Plan
2.3.Technology
The firm is bricks and clicks business model whereby online website is one of the
most crucial operation and used to cater for our clients. Therefore, technology is given
important aspect and as for the creating and setting up the website, maintenance fee, web
hosting and other expenses pertaining our website, the company had allocated RM
10,800.00. The firm also had purchased software such as Microsoft Office Application,
and MYOB as well for management and administration operation.
30 MARKET ANALYSIS SUMMARY
In modern society, the demand for childcare had increased tremendously since more dual
career couples, single parents and mother with children steps in the country’s labour force.
According to the Ministry of Human Resource, in Malaysia labour force participation had
increased from 65.1% in 2001 to 66.9% in 2006 and woman’s participation had increased
from 44.4% in 2001 to 46.1% in 2006.1 Moreover, participation of parents and women with
young children had escalated and they need to find solutions and alternatives for their child
welfare while they are working. Furthermore, the parents and young mothers are rely on
relatives, non-relatives, foreign maids, babysitters’ and daycares centres to care for their
children.
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eMyBabysitter.com Business Plan
shows that opportunity for childcare business is increasing and parents are more concern on
finding good and safe babysitters for their children.
Other than that, legal issues pertaining foreign maid in Malaysia also had contributed to
the opportunity in our business. The ban and restriction by Indonesia government on
Indonesia maid to Malaysia had caused uproar in hired help industry as well as increased the
cost of hiring maid. This is because as for now Malaysia had to rely on countries such as
Vietnam, Myanmar and other countries to seek for maids and hired helps. In February 2000,
there were 679,219 registered foreign workers and 150,000 foreign maids working in
Malaysia.4 However the legal issues among the government regarding the treatments and
conflicts among employer and maids had decrease the number of foreign maid in Malaysia.
Moreover, birth rate in Malaysia also is another factor that can contribute to expansion of
our company. Furthermore, in 2009, it is estimated that 22.24 births for 1,000 populations5.
Table 2 shows birth rate percentage for Malaysia from year 2003 till 2009 (est.).6
Birth Date of
Year Rank Percent Change
rate Information
200
23.7 88 2003 est.
3
200
23.07 86 -2.66 % 2004 est.
4
200
23.07 86 0.00 % 2005 est.
5
200
22.86 85 -0.91 % 2006 est.
6
200
22.65 87 -0.92 % 2007 est.
7
200
22.44 84 -0.93 % 2008 est.
8
200
22.24 84 -0.89 % 2009 est.
9
3.1.Target Market
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eMyBabysitter.com Business Plan
3.1.1.Segment identification
Our company is offering a platform whereby parents and guardian that
need childcare services for their children such as babysitters, nanny, midwife and
part time helpers can gain information from our comprehensive database. The
clients can access to our website and obtain this information by purchasing our
membership packages.
3.1.2.Segment Needs
Our essential service is basically caters personal needs such as for
customers that need caretaker for taking care children from all age group and they
don’t have to face difficulties and hassles by going out to find the caretakers. But
they only need to click and access to our website and all the information about the
babysitters will be provided to them.
3.1.3.Segment Trends
3.1.4.Market Segmentation
The market segmentation for our firm is mainly focused by demographic
and socio-economic. The targeted clientele is dual career parents, single mothers
and guardian for children that from all range of age group. Moreover, we also
will be focusing on computer literate parents. This is because our main operation
is via online and in Malaysia, there are 16,903 million internet users7 in 2008
shows that most of Malaysia had become technology savvy and using internet as
essential tool in their daily life. Our main focus in first year of operation will be
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eMyBabysitter.com Business Plan
all the states of Malaysia with main focus in Kuala Lumpur and Selangor state.
This is because most of career oriented parents are settled in this urban and
metropolitan city. Other than that, the next 2 years, we will be expanding to other
cities such as Johor Bahru, Melaka, Seremban, and others cities.
1.1.1.Market Needs
One of the most important issues that can influence our firm operation is the
parents concern regarding the safety issues when seeking and hiring babysitters.
This is because crime rate against children past decade been significantly increasing.
Therefore, our firm had secure criminal background check service on all the
babysitter and hired helps that will be posted in our database. This is to ensure that
hiring babysitter through our firm is secured, reliable and assured.
Moreover, we also will be proving superior quality in customer service to
cater our clients. This firm is equipped with highly skilled customer service team in
order to assist our clients in any problem and queries related to our services.
Other than that, the management also realise that the customers want their
information and services to be accurate, fast and reliable. Our database contains
massive number of babysitters and the parents would not be left out in finding
babysitters for their children. Moreover, we also had included recommendation and
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reports from previous employers in the all the babysitters profile for parent to view
and select their preferred babysitter.
Other than that, our system also had watch list function whereby parents are
allowed request for babysitter with special skills such as caring for physical disabled
children, the system will store all the available babysitter that fulfil the request and
parents can view their profile without searching the entire database. Furthermore,
the system also equipped with saved search function. The users will be able to save
all the preferred babysitter and also save favourite searches and the user can access
to the information with a single click each time they log into their account. This is to
ensure that the users can obtain information fast and accurate.
1.1.2.Market Trends
One of the most significant trends that can influence our firm operation is
the change of lifestyle of society and the need for parents to enter labour force.
Furthermore, the demand and cost of life is increasing enforce both parents to
work to support the family. Other than that, as for today world, most adults had
become career oriented and when they got married and have children; they still
continue to pursue their career in order to provide their child the best care and
quality life. Therefore, the need and demand for babysitters and nannies to take
care of children while the parent at work is increasing sturdily in the globalised
society. Other than that, the society currently had adapted Internet as one of the
essential tool and part and parcel of digital lifestyle. Therefore, most parents
nowadays want to search for information without leaving the house and expect the
information is accurate, reliable and efficient.
1.1.3.Market Growth
The direct influence of the market growth in the childcare industry is birth
rate. It is estimated that in 2009, it 22.24 births for 1,000 populations8. This is an
affirmative increase in Malaysia’s population. The increase in birth can lead to
increase in demand for childcare service. Other than that, trend of dual career
parents also increasing significantly that can lead to demand for babysitter
services
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eMyBabysitter.com Business Plan
Based on the chart below, almost 92.1% user went online to gain
information and 63.9% to download information. This shows that many Malaysia
had adapted Internet as essential tool to gain information, to seek for services and
perform daily life duties. Therefore, we believe that this new era trend can
influence the market growth in seeking childcare services via online.
Chart 2 shows the activities that Malaysia household perform using Internet in 2008.9
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eMyBabysitter.com Business Plan
Moreover, there is almost 94.4% users use Internet to gain information in 2008
compared to 40.5 in 2005, and in financial activities there are 14.6 % user in 2005 that
increased to 23.6% in 2006 and 31.8% in 2008.10 This shows that the intensity of using
Internet had increased and people are becoming more dependent on Internet to
conduct their business. Besides that, customers are tends to seek for products based on
reliability and price and reputation. In order to accomplish these demands, our firm had
manage to create core competencies whereby our firm had hired child therapist that
specialised in aiding the parent in seeking the best babysitter for their children.
1.2.1.Main Competitors
Even though there no is company that has e-commerce based for childcare
services, but the firm is facing competitors such as childcare agency, individual
babysitters and foreign maid services. Other than that, there is one enterprise that
involved in providing babysitter service via online. The Babysitter Kuala Lumpur
is an online company that provides babysitter services directly to clients.
However, they do not provide database of babysitter but directly provide
babysitting services to the clients.11Therefore, the firm does not have direct
competitors that involved in providing babysitter database services.
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eMyBabysitter.com Business Plan
2.1.Competitive Edge
The most fundamental strength of the company is the business is pioneer in the
field. This is because there is no company that conduct similar business like our firm.
Other than that, the firm also have highly efficient human resource whereby the
management had hired experienced child therapist that can aid the parents regarding their
children’s problems and find the suitable babysitter. Other than that, the customer service
also highly efficient to offer superior customer service to our clients especially assists
them in finding babysitter, solving technical problems, and others. Moreover, the firm
reputation and strong brand image in the perception of customer’s mind also another
competitive advantage that the firm can manage to develop through massive
advertisements and marketing.
2.2.Marketing Strategy
The firm will be adopting position strategy, price strategy, product strategy and
promotions strategy in order to penetrate targeted market
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eMyBabysitter.com Business Plan
2.2.1.Pricing Strategy
As for our services, the clients need to pay yearly membership fee to gain
access to our babysitter database. There are 3 type of membership that range from
RM 35 to RM 90 per year. Based on the average income of Malaysia citizen is
between RM50, 000 till RM 90,000 and it’s based on the profession12, the clients
can afford the membership fee that been scaled by our company. Moreover, our
membership fee is affordable and cost effective for most of household in
Malaysia. Furthermore, the service fee also reflects affordability and cost
effective as well as quality image on the services. This can attract the customers
to purchase our services compared to our competitors.
Chart 3 shows monthly income for the internet user in Malaysia from year 2005 till
200813.
Based on the chart, most of users are currently earning from RM1000 till RM 3,000
whereby almost 46.1% in 2008, 27.5% earn RM 3,000 till RM 5,000 and 18.4%
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eMyBabysitter.com Business Plan
earns more than RM5, 000. This shows that our price for subscription fee is cost
effective and can be afforded by most of parents and guardian in Malaysia.
2.2.2.Promotion Strategy
2.2.2.1.Objectives
• To create strong awareness about our services throughout the targeted
customers as well as public
• To penetrate and increase market share in childcare service sector and
override competitors.
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eMyBabysitter.com Business Plan
Other than that, our company also will be using mass media as advertisement
arena to launch and create awareness among parents regarding our services. The firm is
planning to use newspaper in English and Bahasa Melayu medium oriented because our
Malaysia society is multicultural and diversified and these two languages are the main
medium in our society. Furthermore, based on survey below, the company had decided to
place advertisement in all newspaper from NSTP group that included Berita Harian,
Harian Metro and Sin Chew Media Group. This is because NSTP Group comprises 26%
of circulation in Peninsular Malaysia alone in 2008 and meanwhile Sin Chew Media
group has 30% from total daily circulation of 2,495,56516. This shows that the objective
of creating awareness among public and reaching target customers can be done by
advertising our company services in these local mass media.
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eMyBabysitter.com Business Plan
Other than that, our firm also planning to participate in events such as School
Holiday Carnival that been held in shopping complex to create awareness among parent
regarding our company portfolio. Our team will be setting booth in the cordoned area and
display brochure, pamphlets and free consultation for all parents that seek our customer
service to know about our services. We also planned to organise colouring contest, sand
art, storytelling session and other creative activities to attract children to our booth. This
can enhance the probability of parents to visit our booth. The team will be joining Mid
Valley Megamall event as kick start for the company and later will be more actively
involved in events organised by other shopping complexes.
The management also targeted to distribute flyer and pamphlets in religion places
such as church and temple. This is because most of social networking occurs in these
places can create opportunity for the firm to expand its operation. For example, church
goers will normal held small gathering after the mass and prayers, therefore our
management can leave brochures, leaflet that contains information about our services.
1.1.1.Position Strategy
Our team also had enabled to create and outline constructive strategies to
ensure that our company service will be the first choice for the parents and guardian
to select whenever they dire in need of babysitters for their children. The firm will
be developing unique selling proposition (USP) for the services by differencing our
company’s service with the others through its superior customer services for clients
before and after they become the member of emybabysitter.com, specialised care
and advised from child therapist regarding their children, using her expertise in
order to locate and interview babysitter that is suitable whenever requested by the
parents for special children and ways of acquiring services.
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eMyBabysitter.com Business Plan
1.2.Sales Forecast
Our main products is 3 type of membership that been offered to our clientele.
Therefore our main revenue is obtained from the clientele that purchase our membership
and our cash flow also directly depends on these sales. We are expecting sales to
increase in the month of May and December since this is holiday month and parents
need babysitter for their children whom will be I house due to school break holiday.
Moreover, we are also expecting sales increase almost 5 % to 10% by mid of August,
November till December. Based on Chart 5 shows Sales Forecast for
eMyBabysitter.com for 3 years from April 2010 till Mac 2013, we are expecting sales to
increase during from August onwards in 2010. Our sales are always increased in during
school holiday season, and school season. This is because parents need more babysitter
service to take their children in home whenever the children are on school holiday break.
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eMyBabysitter.com Business Plan
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Based on Chart 6, this shows that in year 2010, total sales s RM 2,301,900 only
however the sales had increased to RM 2,342,275 in 2011 and to RM 2,394,395 in 2012.
The initial year 2010 sales are on the year the company is established and exposure and
penetration to the market is fairly new. Therefore, the firm can barely manage to obtain
sales and gain small amount of revenue. However, in year 2011, the company launched
more wide-ranging marketing that includes participating and setting up booths at
shopping malls to attract customer and create massive awareness about the company and
its’ services among the public. Based on the result of massive advertisement and
launching create awareness among public regarding the services provided by the
company, the sales for 2012 can be increased tremendously.
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eMyBabysitter.com Business Plan
20 MANAGEMENT TEAM
Our company management team consist of 12 employees. There are:-
a. 2 admin clerks,
b. 1 receptionist,
c. 4 customer services,
d. 1 manager, and
e. 2 Assistant Managers
f. 1 child therapist
The company is founded by Thangamalar Rajoo in April 2010 and seen the
opportunity for a brick and click business in childcare services. She has a BA degree
from ULCA as well as a degree in psychology. She had worked with numerous in
hospital managements and several organisations such as hotels, entertainment sectors,
and food and beverage sectors. She can communication in 6 different languages and
currently settled in Kuala Lumpur.
Moreover, another staff that is very crucial to the company is Mrs Simmone Grissom
whom works as child therapist. She graduated from Annamalai Medical University in
Child and Adolescent Psychology field. She had worked in numerous hospitals in
managing childcare, offering counselling for trauma children as well as in proving car for
physically and mentally challenged children. She has 15 years of experience.
Furthermore, there are a team of customer services that is responsible for assisting our
clients in any help such as technical difficulties, payment problems, seeking advice,
setting interview with babysitters and others.
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eMyBabysitter.com Business Plan
1.1.Personnel Plan
Chart 7 shows payroll expenditure for the staffs in eMyBabysitter.com
management from year 2010 until 2012
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eMyBabysitter.com Business Plan
20 FINANCIAL PLAN
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eMyBabysitter.com Business Plan
Moreover, the most vital factors that influence our financial plan is the cost of setting up
the efficient and proactive database consist of babysitter’s information, the cost of setting up
smooth running website and its maintenance and hiring highly skilled and efficient customer
service team in order to grant superior customer service to our clientele. Other than that, the
cost of massive advertisements also play important role in contributing to the proactive and
wide-ranging development of the company and its operation. These elements are most
important to drive creating enormous marketing opportunity and attract clients. Therefore,
this also become most important factor that drives the cash flow, sales, and all other factors
of the operation especially the direct expenses, indirect expenses, revenue, and others.
General
Assumptions
Plan Month
2.2.Key Financial Indicators
Current 31
eMyBabysitter.com Business Plan
gggg
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eMyBabysitter.com Business Plan
for car, delivery and travel as well as for sales and marketing. Therefore, the variable
expenses total cost is 6%. The firm need achieve total sales of RM272, 250 in order to
break even and start to generate revenue for the company. Based on the figure, our
company will be achieving total sales of RM 2,301,900 in first year shows that our
company manage to reach break-even sales.
Break-Even Analysis
eMyBabysitter.com
The c ategories of expense shown above are just suggestions. Change the labels to reflect
your own accounting systems and type of business. Break even is a "big picture" kind of
tool; we recommend that you combine expense categories to stay within the 22 lines that
this template allows.
One of the best uses of breakeven analysis is to play with various scenarios. For 33
instance, if you add another pers on to the payroll, how many extra sales dollars will be
needed to recover the extra salary expense? If you borrow, how much will be needed to
cover the increased principal and interest payments? Many owners, especially
retailers, lik e to calculate a daily breakdown. This gives everyone a target to shoot at for
the day.
eMyBabysitter.com Business Plan
4000000
Total Fixed Costs: 69,600.00
Total Variable Unit Costs: 100.00 3500000
Expected Unit Sales: 7,500 3000000
Price per Unit: 120.00 2500000
2000000
Break Even Units: 3,480.00
1500000
1000000
You will be making profit after 3,480.00 units.
500000
0
Based on Chart above, as for gold membership, the firm is expected to sell about
7500 unit in 2010. With the affordable price, and low variable cost, the firm will need to
sell 3480 unit to achieve break even and continue to generate revenue. Therefore, the
sales of membership must be at RM417, 600 for Gold Membership product to achieve
break even in the first year. Based on sales forecast, we can conclude that in the month
November 2010, the management will be able to achieve the total sales that can lead to
break even sales. However, massive marketing and advertisement as well as empowered
customer service and management team is need to attain this goal.
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eMyBabysitter.com Business Plan
3500000
Total Fixed Costs: 69,600.00
Total Variable Unit Costs: 50.00 3000000
Expected Unit Sales: 9,020
2500000
Price per Unit: 95.00
2000000
1000000
You will be making profit after 1,546.67 units.
500000
Based on the chart above, the firm need to reach sales of 1,546 units 0and above to
accomplish break even sales and generate profit for this product. The management team
must devise constructive strategy to launch the product and penetrate the targeted market
and attain total sales of RM146, 870 for 1546 units in order to achieve break even. After
that only, the firm will be generating profit for this membership product.
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eMyBabysitter.com Business Plan
2500000
Total Fixed Costs: 69,600.00
Total Variable Unit Costs: 42.00
2000000
Expected Unit Sales: 8,680
Price per Unit: 65.00
1500000
0
Based on the chart above, the firm need to achieve sales of 3,026 units and above
to obtain break even sales for Basic Membership. With the price of RM65 per
membership fee, the team must be able to target total sales of RM196, 690 in the 2010 to
ensure that the product can generate revenue for the company independently after the
breakeven point. The price is affordable and the management team believe that the sales
of this membership fee will be tremendously and since the factor that this is new product
in the market, this can intrigue the customers’ curiosity and they want to try purchase the
product as trial basis.
The projected P& L for emybabysitter.com had positive skew for first 3 year even
though the first year the is monthly sales were fluctuating and did not pick momentum in
the first 4 months. Moreover, the company also incurs expenses and other miscellaneous
expenses such as car maintenance, additional utilities expenses and other cost. However
after massive marketing and advertisement, the sales had increased on the September
onwards. However, in 2012, the percentage of net profit slightly dropped due to the
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eMyBabysitter.com Business Plan
company plan to launch and participate in the school holiday events that been held in
shopping centres. Therefore, the company incurs additional expenses apart from all the
direct and indirect expenses. The projected net profit in 2012 shows tremendous increase
which is RM1,386,064 due to we are manage to overcome the star-up cost and did not
incur any new expanses such as financial loan, and other. Besides that, cost of marketing
also decreased in 2012 since the company is expected to be established and had created
awareness among the public regarding the existence of online babysitter service
information database provider. Moreover, we had anticipated 59.2% net profit in 2010
Pro dropped
but Forma Profit in 2011
about 1.0% and to generate
Loss for
57.8% due to incurrence of marketing cost.
emybabysitter.com
However the percentage had increased to 57.9% in2010
2012. The2011
chart 7 shows
2012 positive
Sales
increment in the projected net profit. 2,301,900 2,342,275 2,394,395
Direct Cost of Sales 69,600 72,000 72,600
------------ ------------ ------------
Total Cost of Sales 69,600 72,000 72,600
Expenses
Payroll (includes EPF, SOCSO) 220,905 262,108 279,916
Sales and Marketing 15,750 27,400 14,350
Depreciation 27,190 27,190 27,190
Office Rent 24,000 24,000 36,000
Insurance 6,000 6,000 6,000
Utilities 30,250 29,000 25,300
Motor Vehicle expenses 15,700 13,400 7,950
------------ ------------ ------------
Total Operating Expenses 339,795 389,098 396,706
Other Income
Interest Income 0 0 0
Other Income - Sublet rental income 0 0 0
Total Other Income 0 0 0
Other Expenses
Other Expenses 0 0 0
Total Other Expense 0 0 0
37
Gross Margin % 97.0% 96.9% 97.0%
EBITDA/ Sales % 83.4% 81.5% 81.5%
Net Profit/Sales % 59.2% 57.8% 57.9%
eMyBabysitter.com Business Plan
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eMyBabysitter.com Business Plan
Expenditures
Long-term Assets
L ong-term Assets 135 ,950 140,950 145,950
Accumu lated Depreciation 27 ,190 54,380 81,570
T otal Lo ng-term Assets 108 ,760 86,570 64,380
Current Assets
Cash 1 ,391 ,277 1,705,480 1,794,438
2.6.Projected Balance
Accounts Receivable
Sheet 48 ,000 1,080,103 1,089,198
Other Current Assets 1 ,830 3,330 3,330
Balance sheetAssets
T otal Current of emybabysitter.com is a result1 ,441
of indicators and assumption
,107 2,788,912 2,886,966as well as
consequence of estimated sales and cash flows.
Total Assets 1 ,549 ,867 2,897,672 2,995,726
Current Liabilities
Accounts Payable 13 ,992 14,337 26,404
Current Borrowing 38 ,000 38,000 38,000
Other Current Liabilities 0 0 0
Subtotal Current Liabilities 13 ,992 14,337 26,404
L ong-term Liabilities
Total Liabilities 51 ,992 52,337 64,404
Percent of Sales
Sales 10 0.00% 100.00% 100.00% 100.00%
Gross Margin 96 .98% 96.93% 96.97% 15.22%
Profit Before Interest and Taxes 82 .21% 80.31% 80.40% 1.94%
M ain Ratio s
Current 103.0 0 194.53 10 9.34 1.93
Total Debt to To tal Assets 2.45% 1.31% 1.27% 4.32%
Pre-tax Retu rn on Assets 12 2.11% 64.92% 64.26% 9.90%
Activity Ratios
Accounts Receivable Turn over 7.47 7.47 7.47 n.a
Collection Days 59 45 46 n.a
Accounts Payable Turnover 22 .2 4.56 5.29 n.a
Payment Days 28 47 70 n.a
Total Asset Tu rnover 5.38 3.26 3.74 n.a
Debt Ratios
Debt to Equity 0.03 0 .03 0.03 n.a
Current Liab. to Liab. 0.269118326 0.2739362 21 0.409974 536 n.a
Adminstration Cost
Legal fees 2500
Association Fees 500
Licence Fees 700
Signboard Licences Fees 1250
Seasonal Parking Fees 1200
Professional Accountant 1200
Insurance 6000
Safety Building Inspection Fees 1200
Stationary 3,000
30 APPENDIX
Technology Cost
Setting up Website 3500
Domain 500
Maintenance Fee 800
Web Hosting 1200
IPS Fees 4800
Softw are Cost
MYOB 500
SQL Server 1,300
MS Professional 2007 1,050
373,468
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eMyBabysitter.com Business Plan
Personnel Plan
2010 2011 2012
Contribution of Socso and EPF based on Malaysian Labour Legalisation
Personnel Staff
P er s o n n e l P la n (a ll i n R M ) i n 2 0 1 0 Admin Clerk Personnel Salary for I staff
socso EMP EPF total constirbution
27,520 29,721 32,693
A p r M a y Receiptionist admin clerk
J u n J u l A u g S e p O c t N o v D e c J a n F e b10,328 1000 16.65 M a r 130 O T A L 293.3
T 11,051 11,935
Receiption ist 750 13.15 97.5 110.65
P e r s o n n e l S t a ff Customer Service 66,055 70,679 77,040
Customer service 1200 20.15 156 704.6
Manager 41,300 45,017
A d m in C lerk ( 2 em p l o y1 e0 e %s ) 2 , 2 9 3 2 , Asistant
2 9 3 2 ,2 9Manager
3 2 ,2 9manager
3 2 ,2 9 3 2 , 2 9 3 2 , 2 9 3 2 , 2 9 3000
3 2 , 2 9 3 2 , 51.65
2 9 3 241,288
,2 9 3 2 ,2 390
9 43,869 0 49,518
3 2 7 , 5 2 441.65
47,308
R e c eip tio n is t 1 0 % 8 6 1 8 Therapist 6 1 8 6 1 8 6 asistant 1 8 6 1manager8 6 1 8 6 1 8 6 1 1500 8 6 1 8 25.35
6 1 34,414
8 6 1 8 6195 1 0 , 3 2 8440.7
136,565 39,432
C u s t o m er S er v ic e ( 4 s t1a 5f f%s ) 5 , 5 0 5 5 , Total 0 5 5 ,5 0therapist
5 0 5 5 ,5Personnel 5 5 ,5 0 5 5 , 5 0 5 5 , 5 0 5 5 , 5 0 2500
5 5 , 5 0 5 5 , 42.85
5 0 5 512,5 0 5 5 ,5 3255 6 6 , 0 5 367.85
0 12 5 12
M an a ger 3 0 % 3 , 4 4 2 3 , Total 4 2 3 ,4 4 2 3 ,4 4 2 3 , 4 4 2 3 , 4 4 2 3 , 4 4 2 3 , 4 4 2 3 , 4 4 2220,905
4 4 2 3 ,4Payroll 3 ,4 4 2 3 ,4 4236,902
2 4 1 , 3 0 0 257,927
A s s is t a n t M a n a g e r ( 2 s 2t a0 f%f ) 3 , 4 4 1 3 , 4 4 1 3 ,4 4 1 3 ,4 4 1 3 ,4 4 1 3 , 4 4 1 3 , 4 4 1 3 , 4 4 1 3 , 4 4 1 3 , 4 4 1 3 ,4 4 1 3 ,4 4 1 4 1 , 2 8 8
T h er a p ist 1 6 % 2 , 8 6 8 2 , 8 6 8 2 ,8 6 8 2 ,8 6 8 2 ,8 6 8 2 , 8 6 8 2 , 8 6 8 2 , 8 6 8 2 , 8 6 8 2 , 8 6 8 2 ,8 6 8 2 ,8 6 8 3 4 , 4 1 4
T otal P e rso n ne l 12 12 1 2 12 12 12 12 12 12 12 1 2 1 2
T o t a l P a y r o ll 1 8 , 4 0 19 8 , 4 0 19 8 ,4 0 19 8 ,4 0 19 8 ,4 0 19 8 , 4 0 19 8 , 4 0 19 8 , 4 0 19 8 , 4 0 19 8 , 4 0 19 8 ,4 0 19 8 ,4 0 29 2 0 , 9 0 5
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eMyBabysitter.com Business Plan
3,000,000
2,500,000 2,287,068
RM 2,000,000
Net Cash Flow
1,356,2771,391,277 1,381,260
1,500,000 Cash Balance
895,791
1,000,000
500,000
0
2010 2011 2012
Year
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40 REFERENCE
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