1 THREE FROZEN FOOD

EXECUTIVE SUMMARY
Where you can find a quality frozen food? 1 Three Frozen food can answer that for
you. 1 Three Frozen Food is retailer in frozen food business and will provide a best quality
frozen food to consumer. This business is operated at Mydin Mall Kuala Terengganu. 1
Three Frozen Food registered at Companies Commission of Malaysia (CCM) at 27 th
September 2010 and expect to be operating at 1st January 2011.
1 Three Frozen Food will be manage by four partners consists of one managing
partner, three administration partner and will be assist by one staff. This company retails a
frozen food from manufacturer and builds a vision to increase a food production especially in
frozen food filed and making a Malaysia as international halal hub and with a mission to
manufacture own product of frozen food and export it to other country.
This company focusing on traditional frozen food and its located at a very familiar
place for local consumer and tourists. 1 Three Frozen Food focus to sell this product for
domestic tourists and local people. Basically, everyone can consume 1 Three Frozen Food
product whether adults or children. It is suitable for family hi-tea at home or during picnic. 1
Three try to differentiate product with competitor by an interesting packaging with the product
history stated on it.
The partners and staff will be working according to the shift in the time table that has
been made. 1 Three will be operate based on time that Mydin Mall has set. In order to
assure that all the inventory is sufficient, 1 Three will make an order of 280 packet per week
for every product and maintain 20 packet for safety stock. This amount is based on
observation that consumer buy on the particular product.
This business is does not require a high capital to operate it. It is because 1 Three choose
an existing place that already prominent and all has to do is how to make customer to buy
the product. With the advantage, it give a fair turnover to the partners and also give an
opportunity to achieve mission and mission of the company.

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INTRODUCTION
1 Three frozen food has established on 27 th September 2010. 1 Three frozen food is
the partnership business located at LotG-07C, 07D Mydin Mall Kuala Terengganu, Jalan
Sultan Mahmud 21000 Kuala Terengganu, Terengganu Darul Iman. Our business is
involving on retailing traditional frozen food product such as keropok lekor, satar ikan,
popiah, karipap, pau, donut, samosa, roti keramat, roti canai and cucur badak.
Our main product is keropok lekor and satar ikan. We choose the both type of
product as a main product because it is one of the symbols in Terengganu and we will try to
advertise the product not as a symbol of Terengganu but also as a Malaysia symbol. When
observing the market, we found that the supplier for traditional frozen food is less than other
types of frozen food but the demand for traditional frozen food is increasing. That is why we
are trying to involve in this business.
As mentioned above, we are trying to sell the traditional frozen food and will try to
advertise it as a symbol of Malaysia; with this product it will help government to promote our
country on tourism sector in Malaysia especially in Terengganu. Majority from Terengganu
citizen is a Muslim. With our product, we will guarantee that our product will give an excellent
quality of product and producing in a halal way.
Nowadays, halal food is prominent among non-Muslim also. It will give our business
more opportunity on expanding our business in this field. Consumer also needs a product
that very helpful in terms of time, energy and many more. With this frozen food, it will not
cost time and energy to consume it because it just needs to be fried and ready to eat. That is
why we choose this type of business. Indirectly we also help the consumer.
With the increase in global halal trade, many countries are taking several initiatives to
capitalize on the growth potential. Malaysia, as a Muslim country, has all the elements and is
well positioned to be the centre for the promotion, distribution and production of halal food,
non-food products and other services and we as a frozen food retailer will be part of the
trade.

PURPOSE
Our main purpose to do this business plan is to apply a loan. This is as evidence that
we are really interested in running a business. With this business plan also can guide us on
how to operate the business. With the market observation and research that we conduct, we
are really confident that this business plan will lead us to a successful place.

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COMPANY BACKGROUND
Business name is 1 Three Frozen
Food and located at Lot G-07C & G-07D
Mydin Mall Kuala Terengganu, Jalan Sultan
Mahmud
21000
Kuala
Terengganu,
Terengganu Darul Iman and e-mail address is
www.1ThreeFF.com.my . Our telephone
number is 09-6173564. This business is
registered under partnership and the main
activity is retailing frozen food. 1 Three
Frozen Food registered on 27th September
2010 and will be commence at 1st January
2011. The registration number is TR0075213W and register with Maybank with an account
number 113015143752.

Total contributions are RM25000

PARTNERSHIP BACKGROUND
1 Three Frozen Food is form by four members (see appendix). For a first time, this
four partners agreed to form a restaurant, but because of certain circumstances the partners
change the idea to sell a dodol. After making an observation about dodol, they did not
confident to be in that business. One of the partner give an opinion to open frozen food
business and the rest of the partner agreed to form a frozen food business.
The partners make a research about frozen food and they felt that frozen food
business is having a good opportunity to join in. When the entire partner agreed to continue
with the frozen food business, they create their partnership business name which is 1 Three
Frozen food. 1 Three Frozen Food idea is taken based on the partners genders which mean
one of the partners is male and three of the partners are female.
For the first time, the partners agreed to sell a western frozen food but after
observation of market share of the western frozen food, the partners change to traditional
frozen food. It is because some of the traditional frozen food is not very famous among our
local people and tourists. 1 Three Frozen Food wants to take the responsibility to introduce
the traditional frozen food among the local people and tourists.
With the small amount of retailer in traditional frozen food, it will give an opportunity
to 1 Three Frozen Food to raise it sales and thats why the partners agreed to involve with
the traditional frozen food. The partners also want to promote the Malaysian traditional
frozen food to the others country with the quality of the product provided.

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LOCATION OF THE BUSINESS

1 Three Frozen Food is located inside Mydin Mall Kuala Terengganu. Mydin Mall
Kuala Terengganu is the opposite Mydin hypermarket. 1 Three Frozen rent a lot of shop with
a 20ftx10ft and illustrated as below;
This shop will be deposit with RM8000 and will pay a fixed monthly rental RM3000
including with electricity and others facility. This shop also will have a renovation amounting
to RM8000. The renovation is to place a 9ft glass at the left of the shop and below is the
map where Mydin Mall is located;

MARKETING PLAN
Marketing Objectives
Terengganu is popular with cake or in Malay we called it kuih-muih. Tourists usually
come to Terengganu to taste their delicious cake like keropok lekor, satar ikan, karipap and
others. There are many shops selling cakes at Kuala Terengganu. People can buy and eat it
on the spot, fresh and hot and spicy. For tourists, they cannot buy it as souvenir to bring it
back to their hometown because the cake will be expired. To overcome this problem, our
company has decided to sell the frozen food for cake. This frozen cake is long lasting as
long as they keep it in fridge. Tourists can buy and bring it back to their hometown. Not only
for tourists, can local people also buy the frozen cake for their food stock at home. When
they would like to eat cake, they can fry it at home.

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Product Description
Frozen food is food preserved by freezing. Freezing is an easiest, quickest, most
versatile and most convenient methods of food preservation because the pathogens that
cause food spoilage are killed or do not grow very rapidly at reduces temperatures. Properly
frozen foods maintain more of their nutrients than foods preserved by other methods. Foods
may be preserved for several months by freezing. Long-term frozen storage requires a
constant temperature of -18 degree Celsius (0 degrees Fahrenheit) or less.
Basically, the products are fried cakes. Before it preserved by freezing, firstly the
cakes must be fry half cook. Then, packaging activities involve and the cakes will be kept in
the freezer. The cakes must always be kept in low temperature to maintain its quality and
freshness. When the customers buy the products, they are still must be kept in fridge. Only
when customers would like to eat, then the frozen cakes can be taken out from the fridge
and fry the cakes fully cook.
Our business offers ten different types of frozen cakes which are keropok lekor, satar
ikan, donut, samosa, curry puff, roti keramat, roti pau, roti canai, cucur badak and popiah.
These are traditional cakes that come from several state of Malaysia. As to compare our
business than the other, we provide the history and background for each of our offerings for
customers information. This is the example of history or background information about one
of our products:
Satar ikan
Satar is kinds of foods which build into fish flesh mixed with spice, coconut and are packed
with banana leaf before burning. The specialty of satar is it use fresh fish flesh (new catch
result from sea) that will produce good satar and not smelling fishy. Satar can only last for
the day it been made. If we do not eat it that day, it will expire. Thus, it is preserved by
freezing to keep it long lasting. Sata is very popular among Pahang society remainder near
sea and suitable to be made breakfast and afternoon tea.

Target market
Our business is involved in the distribution of frozen cakes for customers at Mydin
Mall Kuala Terengganu. We identified our target market is the customers who come to Mydin
Mall. There are three market segments within target area which are local people, domestic
tourists and others. Domestic tourist usually
customers comes outside Terengganu from all
over Malaysia, local people are the family inside
Terengganu itself while the others refer to
workers, students or teenagers in Terengganu
area. We have made the proportion customers
come to Mydin Mall which are family 50%,
domestic tourists 30% and the others 20%.
Basically, everyone can eat cakes whether
adults or children. It is suitable for family hi-tea
at home or during picnic.

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Market size
Based on our survey at Mydin Mall Kuala Terengganu, it showed that there are
average 9700 persons who come to Mydin Mall Kuala Terengganu every day. We estimated
64% of the total customers will go to Mydin, 30% will go to Mayang Village which is a
foodcourt, 3% will go to electronics area and the other 3% will go to frozen food area. Thus
there will be 6208 customers go to Mydin, 2910 customers go to Mayang Village, 291
customers go to electronics area and 291 customers go to frozen food area.
After that the calculation of
market size can be made, we
estimated from 291 customers who go
to frozen food area each will spend RM
20. So we get market size for one day
is RM 5,820. As for a week, the market
size will be RM 40,740 and for a month
is RM 162,960. Thus, market size for a
year is RM 1,955,520 (RM 162,960 x
12 months).

Competitor

We have identifies our competitors

which are Mydin itself and Iwani Cucuk Seafood. Mydin is a wholesaler of many kinds of
products with low price and has been in market for a long time. Iwani Cucuk Seafood is also
located at Mydin Mall at Mayang Village area and it is new business. They provide the same
products as our business plus they have western and seafood frozen foods. Although both
businesses offer the same products, however they are not focusing on frozen foods like us.
So, we are confident to enter the market and compete with them.

Market share
As we have calculated our market size is RM 1,955,520 per year, we estimated
before the entry of our business that is 1 Three Frozen Food the market only conquered by
Mydin 70% (RM 1,368,864) and Iwani Cucuk Seafood 30% (RM 586,656). After analyzing
the competitors strengths and weakness, 1 Three Forzen Food is confident we can control

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30% of the market. This will mean that the existing competitors will lose some of their market
after the entry of 1 Three Frozen Food. Thus, the adjusted market share after the entry of 1
Three Frozen Food is Mydin 50% (RM 977,760), 1 Three Frozen Food 30% (RM 586,656)
and Iwani Cucuk Seafood 20% (RM 391,104).

Forecast sales
1 Three Frozen Food is confident that we can control 30% of market share after our
entry into market. Thus, for one month our target sales are RM 48,888 (RM 586,656/12
months). However, since we are new in market, customer awareness will take some time.
While the customers familiarize themselves with our business and the frozen foods, we
expect sales to be less than the estimated sales for the first month. Our sales will increase
starting from second month after make some promotion strategy to speed up customer
awareness.
We also identified our target sales also influence by some seasonal factors. Our
sales for year 2011 will increase in February, March, June, November and December which
are during school holiday. This is because during school holiday there will be more people
and tourists come to Mydin Mall. Besides that, our sales also influence during Hari Raya
season and public holidays. We expected for next year, our sales will increase 10% per year.
Thus, our sales for the year 2012 are RM 645,370 and 2013 is RM 709,907.
MONTH
January
February
March
April
May
June
July
August
September
October
November
December
Total sales for 2011
Total sales for 2012
Total sales for 2013

SALES COLLECTION
RM 45,500
RM 47,000
RM 47,700
RM 48,000
RM 48,500
RM 50,000
RM 50,200
MARKETING STRATEGY
RM 50,700
RM 49,900
RM 49,700
Product strategy
RM 49,500
RM 50,000
RM 586,700 FROZEN TO FRIED
RM 645,370
RM 709,907

1 THREE FROZEN FOOD

We do not manufacture the frozen foods instead we buy them from three different
suppliers or manufacturers. We choose these three suppliers because they are the best
suppliers of frozen cakes products around Terengganu. However, we make our own
packaging using our brand name which is 1 Three Frozen Foods with our tag line Freezer to
Frier. We also have our own plastic bag labeled with our business logo. The brand name
and tag line will show the identification of our business.
The reason we make our own packaging is to make sure the frozen foods is in high
quality. Before we pack the products, we will check the products with detail the hygiene, the
size and color to guarantee the quality. At the packaging, we will put information regarding
the ingredients, price, quantity, nutrition, halal certificate, manufactured date, expired date,
manufacturer address, and our information as a retailer. The packaging will cost RM 0.10 per
unit of product while the plastic bag with logo will cost RM 0.05 per plastic.

Pricing strategy
Our business has decided to use cost-based pricing strategy which is the simplest
and most commonly used. Cost based pricing is based on the total cost of the product plus a
standard mark-up. The mark-up is the profit margin that is desired from the sale of the
product. We decide different mark-up for the products based on different suppliers. For the
products from Sri Sura, we add 34% mark-up for each product, Mz Ziadatul Khair Marketing
we add 35% mark-up and for the products from Rudyz Enterprise we add 40% mark-up for
each product.
Price = Total Cost Per Unit + Mark-up
Products

Cost (RM)

Mark-up %

Price (RM)

Satar ikan

4.50

34

6.00

Keropok lekor

4.50

34

6.00

Donut

2.80

35

3.80

Roti pau

2.30

35

3.10

Roti canai

4.10

35

5.50

Roti keramat

2.60

35

3.50

Samosa

2.50

40

3.50

Karipap

2.50

40

3.50

Cucur badak

2.50

40

3.50

Popia

2.50

40

3.50

TOTAL

RM 30.80

RM 41.90

Place or distribution strategy

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A distribution channel moves goods from producers to customers. Our business uses
this form of distribution channel:
Retailer

Consumer

This distribution channel has one intermediary level that is the retailer. We will be the retailer
for the frozen foods to customers.
Our manufacturers are:
Owner: Pn. Khuzaimah bt
Kh. Mohamad

Owner: Muhammad Badri

Shah B. Bahari

Owner: Zaliha Abdullah

Mz Ziadatul Khair
Marketing
1024-1 Kampung Panji,
Merbau Patah,
Kuala Terengganu.
Contact no : 0199388030/019-9368030
PRODUCT: roti canai, pau,
donut, roti keramat

Rudyz Enterprise
No 2, Tingkat Bawah, Taman
Sri Bayu,
Jalan Besar Paka,
23100 Dungun,
Terengganu.
Contact no : 012-3916292
Email:
http://www.rudyz.com
PRODUCT: Samosa, popiah,
cucur badak, karipap

Sri Sura
143, Kampung Sura Tengah,
23000 Dungun,
Terengganu.
Contact no: 098484810/019-9253673
PRODUCT: satar ikan,
kerepok lekor

Promotion strategy
Promotion is very important to build customers awareness of our existence in
market. Once the customers know about our products only then we will slow down the
promotion activities. We would like to advertise our products in internet by creating our own
website which is www.1ThreeFF.com.my . In that website, we will describe the price,
products information and also business location. Besides that, we will also provide space for
customers to give comment regarding our products or business. Customer also can give any
suggestion to improve our business.
We also have outdoor advertisements like banner and brochures or pamphlets. We
will provide all the information about our business and products inside the pamphlets and
distributes them around Mydin Mall during first week of our opening business. We will hang
the banner at the junction around Mydin Mall. Other than that, we also have our signboard at
our shops. This is an identification of our business. There is information of our business like
business name, logo, tag line, address and operation hour at the signboard.

Sales promotion is also one of our promotion strategies. We will give discount during
hari raya season and during year end. The other promotional activity is during festival. If
there are any festivals or carnival at Kuala Terengganu area, we will join and have our own
booth to introduce our products to publics. We will give free sample of our products and also
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1 THREE FROZEN FOOD

give discount. The purpose of this promotion activity is to let the customers know our
existence at Mydin Mall Kuala Terengganu and invite them to come to our business location.

People
Our business is only involved customers who come to Mydin Mall Kuala Terengganu.
Thus, it is so important to create customer loyalty that will make them always consume our
products. There is only one section of our customers which is business to consumer (B2C).
It describes activities serving end consumers with frozen foods products. This customer is
being the main potential target for our business. They can be family, tourists and others as
we targeted.

Process
Our business not stops after customers buy our products but also involve event
before and after that. We will have connection and feedback with the customers regarding
our business. If there is any comment or suggestion, they may leave at our website or
directly call to our office at 09-6173564. We also will inform any update about our business
or products for customers information. Any comments or suggestions leaved, we will take
into consideration and discuss among partners to improve our business.

Physical Presence
Physical presence covers the organization and the image that we bring to customers.
We really focus on personal hygiene of our staff and good appearance. Good service is also
important especially in communication with customers. The purpose of this marketing
strategy is to ensure we bring good image of our business and also tell the customers what
we actually provide to them.

Marketing budget
ITEMS

Signboard
Packaging:
Plastic bag labeling
Packaging labeling for products
Promotion:
Banner
Pamphlet
TOTAL

FIXED
ASSETS
EXP
(RM)
2000

EXP
(RM)

OTHER
EXP
( RM )

560
1200

2000

1760

350
100
450

OPERATION PLAN
Operation Process Planning

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FLOW CHART

Purchasing
supplier

product

from

Quality inspection

INCOMING
BUSINESS
PROCESS
FLOW

Packaging activities

Product storage

Customer choose the product

Sales girl- Get the packaging

beg

JOB
ACTIVITY
CHART

Select/take
product
being
choose and put it into packaging
beg
Cashier-Receive payment
give goods to customer

and

This flow chat is combination about the incoming business and job activity .First we
identify all the operational activities required for the production of the product. Then we
arrange these activities according to sequence and proceed to draw the process chart.
Figure 1 show the production activities required to sell the frozen food.
1. First, we order and purchasing product from three suppliers.
2. Then, we check the product we order is right or wrong, check the quality of product
and so on.
3. Before we save it in the storage, we have the packaging activities. We change the
suppliers packaging with our own packaging.
4. After that, we stored it in the storage area. We also arrange the product into freezer
and also keep to the safety stock.
The job activity chart will show the sequence of jobs that need to be done by a
worker. Figure 1 shows a job activity chart for the counter staff in a 1 Three Frozen Food.
The job activity for our staff is very easy because she just does the simple thing which she
put product together in packaging and manages the money after customer buys our product.

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1 THREE FROZEN FOOD

Besides that, she also responsible in care our store and give good service to our customer.
All the partners have each work to do and she just help them when they in the store.

Business and Operation Planning

This table shows our business hour. Business hours refer to the time the business is
open to the customers. Operation hours refer to the hours the worker has to work.
We decide to have two shifts which start from 0930 to 1730 and 1730 to 2300. For
the worker, she works same with office hours. Some
Saturday Thursday : 0930-2300
of the partners will work together with our worker and
the other partners will continue for the next shift.
Friday
: 0900-2300
The dutys sales girl is to protect goods from
theft. This is because our worker always in store. She also should clean our store and
arrange the product very tidy in freezers every day. For the partners, they do their work
according their department to manage the business very well.
Schedule Work Every Week

SCHEDULE WORK
First shift
Second shift

= sales girl + partners

= partners

Saturday Thursday: 0930-2300

Friday
: 0900-2300

DAYSFIRST SHIFT 0930 to 1730SECOND SHIFT 1730 to

2300STAFFPARTNERSPARTNERSSundaysales girlain + natashashahidy +
alifahMondaysales girlalifah + shahidynatasha + ainTuesdaysales girlshahidy +
natashaain + alifahWednesdaysales girlain + alifahshahidy +natashaThursdaysales
girlalifah + natashaain + shahidyFriday
sales girlshahidy + ainnatasha +
alifahSaturdaysales girlain + natashashahidy + alifah

Selling Planning
Average sales forecast per month:
Price per unit (41.9/10):
No. of sales per month:

= RM48888
= RM 4.19
=RM48888

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RM 4.19
= 11668units
The amount of sales per day:
Average sales per day:

= 389 per day

= 400units

Purchase Requirement
Table 10: List of materials/stocks
Quantity in
Quantity
Safety
the packet
(average per
stock
( pieces )
week)
9
280
20
9
280
20
10
280
20
9
280
20
10
280
20
10
280
20
10
280
20
9
280
20
25
280
20
20
280
20
Total

Types of
purchases/stock
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Donut
Roti pau
Roti canai
Roti keramat
Samosa
Karipap
Cucur badak
Popia
Satar ikan
Keropok lekor

Price
(cost price)
RM
2.80
2.30
4.10
2.60
2.50
2.50
2.50
2.50
4.50
4.50

Total
(RM)
840
690
1230
780
750
750
750
750
1350
1350
9240

Average sales for 1 day are 400 units. 400units are dividing by 10 products to get 1
day quantity. We get the quantity average per week after we times 40 units with 7days. So,
we decide to take 20 units for safety stock. The total of purchase requirement is RM 9240.

Operation Personnel
Table 12: Position and number of staff
Position
Operation partners
Staff ( sales girl )

No of staff
1
1

Operation Layout

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10 ft

20ft
Figure 2
We decide to use the layout based on marketing. This type of layout is designed to
utilize the available space to display our product.
The layout of our store is illustrated in figure 2 that arranged in such a way like:
Arrangements of goods are attractive
we arrange the freezer of frozen food straight and side by side to give the
customers easier walk around it, to see and choose the product their like.

Location Plan
All the partners have to make decision which premise is the best for the business to
operate. Choice of location is important because it will affect the sales revenue, business
operation cost and long term investment. Factors to be considered for choice of location are
public awareness and other facilities.
Public awareness is the first factors that influence the choice of location. Public
awareness means that Mydin Mall Kuala Terengganu is the place that people aware or we
can say as a famous place in Kuala Terengganu. From this advantage, we can increase our
sales and expand our business.
Besides that, other facilities also the factor that have to be considered. Other factors
that we considered before choose our place is the availability such as utilities, banks (A.T.M),
parking lot and safety of the surrounding areas.

Monthly Operation Cost

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PURCHASES COST
LABOUR COST
OVERHEAD COSTS

ITEM
Frozen food ( RM30.80 x 300Q x 4 WEEKS
Staff sales girl
Rent
Utilities

TOTAL

AMOUNT ( RM )
36960
797
3000
1000
41757

Project Implementation Cost

ACTIVITIES
Incorporation of business
Application for permits and license
Searching for business premise
Renovation of premise
Procurement of raw material
Recruitment of labour
Installation of freezers

DEADLINES
Sept - Nov
Sept - Nov
Oct
Nov
Nov - Dec
Dec
Dec

DURATIONS
3months
3months
1 month
2 weeks
2months
2 weeks
1month

ADMINISTRATION PLAN
Vision
Increasing on food production especially on frozen food in the country as well as
making Malaysia an important international halal hub.
Mission
Has own place to manufacture own product of frozen food within five to ten years and
export product to other countries.
Objective
Gain profit resulting from high sales.

Organization chart

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General Partner
Muhammad Shahidy bin
Ismail

Partner-Marketing
Nur Natasha bt Mohamad

Partner-Operation
NurulAin bte Mohd Ayub

Partner-Financial
Wan Nor Alifah bt Wan
Ahmad

Salesgirl

Manpower Planning
Position

No of staff

Managing Partner

Administrative:
Marketing partner
Operation partner
Financial partner
Staff

Schedule of tasks and responsibilities

Position
Managing partner

Administrative

Sales girl

Main tasks
To plan, leading and control the
overall management of the business
To plan and monitor the strategic
progress of the business
Operation- control stock, plan activity,
set objectives to company
Marketing- do all strategy marketing
and do the improvement in attracting
customer to buy product
Financial- control overall cash inflow
and outflow and control the cash
Assist all administrative work

Schedule of remuneration
Table 19: Remuneration

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Position

Staff
( Sales girl )
Total (RM)

No. of
staff
1

Monthly
salary
(RM)
700

EPF
contributions
(12%) (RM)
84

SOCSO
(RM)
13.15

Amount
(RM)
797.15
797.15

List of machine and equipment

Table 15: Machine and equipment

Item
Cash register

Table
Freezer
Display
Storage

Price per
unit (RM)
950

Unit
required
1

Total cost
(RM)
950

300

300

2500
2700

3
1

7500
2700

Total (RM)

6450

Supplier
Sharp (M) Sdn Bhd
Lot 4006 Jalan Sultan Omar,
20300 Kuala Terengganu,
Terengganu.
Singer (M) Sdn Bhd
Lot 3958 Jalan Engku Sar,
Batas Baru,
20300 Kuala Terengganu,
Terengganu.

Schedule of administrative budget

Table 21: ADMINISTRATIVE BUDGET
Items
Salaries
Rental
Rental deposit
Utilities
Renovation
Cash register
Freezers
Business Registration

Fixed Assets
Expenses (RM)
8000
950
9700

Monthly Expenses
(RM)
797.15
3000
1000
-

Other Expenses
(RM)
9000
-

18650

4797.15

100
9100

Total

Note: all the administration cost related to operation cost.

FINANCIAL PLAN
Project Implementation Cost
FROZEN TO FRIED

17

1 THREE FROZEN FOOD

The project implementation cost in Table 1(appendices) shows that the total cost of our
business. For the capital expenditure the cost is RM 21,450 and the other cost such as sales
and marketing cost, general and administrative cost, operations and technical cost,pre
operating cost and other expenditure is RM 53,057. The total cost incurred is RM 74,517

Sources of financing
We decide to take a loan about RM 50,000 and the partners contribution is RM 25,000.
The entire partner had agreed to contribute 28% for managing partner, and 24% for the
other partners. It shows in Table 2 (appendices).

Table of Depreciation
All the fixed assets are depreciated at 5 years useful life and the method used is straight
line method. Refer Table 3 (appendices).

Loan Ammorzation Schedule

1 Three Frozen Food need a loan for the cost of freezer, table, signboard, and purchases
of product. The reason we take the loan because we do not have enough budgets to run the
business. Refer Table 4 (appendices).

Pro Forma Cash Flow

We agree among partner to take a portion of the cash balance same with a capital
contribution. For general partner, he takes RM 1,750 per month and the other partners, we
takes RM 1,500 per month. Refer pro forma cash flow in Table 5 (appendices). Below is the
summary for the cash flow.

Total Cash Inflow

2011 (RM)
661,173

2012 (RM)
645,322

2013 (RM)
709,854

(-) Total Cash Outflow

559,926

573,728

622,515

Cash Surplus (Deficit)

101,247

71,594

87,339

101.247

172,841

172,841

260,180

(+) Beginning Cash

Balance
Ending Cash Balance

101,247

Pro Forma Income Statement

Years
Sales
Less: Cost of Sales (Notes 1 & 2)
Gross Profit

2011
586,656
443,520
143,136

FROZEN TO FRIED

2012
645,322
487,872
157,450

2013
709,854
536,659
173,195
18

1 THREE FROZEN FOOD

Less: Expenditure
Pre-Operating & Incorporation
Expenditure
General & Administrative Expenditure
Sales & Marketing Expenditure
Operations & Technical Expenditure
Other Expenditure
Interest on Loan
Depreciation of Fixed Assets
Total Expenditure
Net Income Before Tax
Tax
Net Income After Tax
Accumulated Net Income

100
57,566
21,120
450
2,968
4,290
86,493
56,643
0
56,643
56,643

57,566
21,120
450
2,742
4,290
86,168
71,281
0
71,281
127,924

57,566
21,120
450
2,504
4,290
85,930
87,265
0
87,265
215,189

For year 2011, portion of profit as follows;

Managing partner (28%x56643=15860), Marketing partner (24%x56643=13594.32)
Operating partner (24%x56643=13594.32), financial partner (24%x56643=13594.32)

Pro Forma Balance Sheet

Assets
Non-Current Assets (Book Value)
Other Fixed Assets
Other Assets
Deposit
Current Assets
Cash Balance
TOTAL ASSETS
Owners' Equity
Capital
Accumulated Income
Long-Term Liabilities
Loan Balance
TOTAL EQUITY &
LIABILITIES

2011

2012

2013

17,160

12,870

8,580

9,000

9,000

9,000

101,247
127,407

172,841
194,711

260,180
277,760

25,057
56,643

25,057
127,924

25,057
215,189

45,708
127,407

41,730
194,711

37,514
277,760

Financial Analysis (Table 5: appendices)

FROZEN TO FRIED

19