1.

0 BUSINESS INITIAL IDEA

1.1 Nature of Business

Business refers to the process of buying and selling either goods or services. It is an
economic activity that focuses on the purchase of raw materials and the sale of finished
goods. The businessman owns and manages the organization that he/she established.
(Namratha Reddy, 2018) Besides, the business also is an economic activity, which is related
to continuous and regular production and distribution of goods and services for satisfying
human wants. (Gaurav Akrani, 2011)

We had come up with an idea to establish a business in food service. Our cafe will be
named as ‘Heart and Soul Bakery Cafe’ and we will also have our own cafe slogan which is
‘Cake Meets Coffee’. Why do we choose to open a cafe? It is because the cafe has to become
a trending place for people nowadays including young and old people to chill out every day.
Furthermore, a simple dessert can bring happiness to someone that enjoy it.

By the name of the cafe, we can know what kind of food we will sell. We will sell food
and beverages such as crepe cake and coffee. Why we choose crepe cake and coffee as our
menu? As life is full of stress, the dessert and coffee are great solutions to relieve the stress.
Commonly, people like sweet so dessert such as cake and beverages like coffee will satisfy
their craving for sweet. As for the beverages, we will sell coffee, frappe, and smoothie. Our
main drinks are coffee but as people have different taste, we will also sell other types of
drinks to satisfy customer needs.

Our main menu is ‘Crepe Cake’. We choose crepe cake as our main menu instead of a
normal cake because we want to be different from the other cafe that also sells cake. As far as
we know, there is no cafe that sells the crepe cake in Kedah especially in Sungai Petani which
in the location area of our cafe. Near our cafe also have a few shops likes Piano shop and
Black Secret that sell western food. When people come to the nearby shop likes Legends
Music Academy and Black Secret Restaurant (western food), they will see there is a new cafe
and it can attract and increase the people curiosity to visit our cafe. them

Besides, there is also no competition in the location area of our cafe as we are the only
cafe that sells cake and will be open soon. Then, our cafe location also near to the luxury
housing area and The Carnival waterpark so, we can attract many future customers from the
housing area and also people that come to have fun at the waterpark. Furthermore, we use
less sugar in our crepe cake in order to satisfy the customers that care with their health and
the customers also will become healthier as they take less sugar. In the appendix, there is
some example of crepe cake and coffee that we will sell in our cafe.

1.2 Size Of The Company

1.2.1 Sources Of Capital

Our company will start our business with an initial capital of RM250,000 from bank
loans and RM150,000 personal contribution from shareholders which means each contribute
RM30,000. The company will be owned by five individuals, who are the shareholders in the
company. Alliance bank will be the main choice of our lending bank. Besides that, our
shareholder all is the fresh graduate from university. Therefore, we are going to get the
financing from Graduate Entrepreneur Fund (TUS) which provide a lower interest rate of
4% . TUS is a financial facility designed especially for graduates. The fund is a soft loan
scheme for graduates to start a business in the services and industrial sector and for those who
already have an existing business. The capital funding of our company is shown below:

Description Amount (RM)

Bank loans ( Alliance Bank ) RM 150,000
Contribution from shareholders:
Lew Xue Yin RM 30,000
Norlaila Binti Halim RM 30,000
Nuur Shasha Ezzwanis Binti Mazlan RM 30,000
Chan Shiau chin RM 30,000
Norliana Binti S.Edy Preswanto RM 30,000

TOTAL RM 250,000
 1.2.2 Expenditures

Our company is a start-up business where the financial was earned from partners and
loan from the bank. We expected to raise RM150,000 from our partner and another
RM100,000 we were planning to have a loan from Graduate Entrepreneur Fund (TUS). Our
expenses will be fixed expenses which include kitchen appliances, furniture, equipment and
monthly expenses such as rental, salaries, publicity, materials and saving for emergency uses.
Total investment of our business is RM2500,000. Part of the amount we gained from personal
saving while the other part we received from loan. These are our budget:

Price Per Unit

Description Quantity Amount (RM)
(RM)
Fixed Expenses:
Shop Renovation & 50,000.00
Decoration
Vehicles:
1 98,000.00
Car
Motorcycle 1 7,000.000
Kitchen Appliances:
Measuring jug 3 10.00 30.00
Crepe machine 2 300.00 600.00
Coffee machine 2 1000.00 2,000.00
Refrigerator 1 1,800.00 1,800.00
Glass Cake chiller showcase 1 2,000.00 2,000.00
Cooking accessories 2,000.00
Glassware 1,500.00
Cake plate 1,500.00
Furniture:
Cashier Counter Table 1 450.00 450.00
Tables And Chairs 15 350.00 5250.00
Files Cabinet (Small) 1 150.00 150.00
Kitchen Cabinet 1 3500.00 3500.00

Equipment:
Light 5 80.00 400.00
Air conditioner 2 1,500.00 3,000.00
Printer 1 588.00 588.00
Fire extinguisher 1 70.00 70.00
Office Telephone 1 500.00 500.00
Computer 1 2,000.00 2,000.00
Cash Register Machine 1 500.00 500.00
Music Player set 1 2,000.00 2,000.00
Cleaning set 1 150.00 150.00
Emergency light 1 150.00 150.00
CCTV & Alarm 4,000.00
Other Expenses:
SSM License Registration Fee 60.00
Halal Certificates Fee 200.00
Legal / Organization Cost 5,000.00
Total of Fixed Expenses (RM): 194,398.00

Monthly Expenses

Rental:
Shop rent per month 1,800.00
Wifi plan per month 200.00

Electricity and Water Supply 2500,00

per month (estimated)
Salaries per month:
Manager 1 2,300.00 2,300.00
Workers:
- Cashier 1 1,300.00 1,300.00
- Barista 1 2,000.00 2,000.00
- Assistant Barista 1 1,400.00 1,400.00
- Baker 2 1,500.00 3,000.00
- Waiter 4 1,200.00 4,800.00
- Cleaner 2 1,000.00 2,000.00
Publicity:
-Packaging (Plastic Bag, 800.00
Sticker)
-Flyer 2000 0.15 300.00
-Banner 2 100.00 200.00
-Name Card 2000 0.05 100.00
-Advertising Fee 1,500.00

Materials:
-Flour 150kg 2.50 375.00
-Eggs 400 0.40 160.00
- Milk 100 2.80 280.00
-Sugar 120kg 2.50 300.00
-Coffee 500.00
-Vanilla Flavour 300.00
-Mocha Flavour 300.00
-Chocolate Flavour 300.00
- Tea Flavour 300.00
-Cappuccino Flavour 300.00
-Others 1,000.00
Total Monthly Expenses (RM) 28,315.00
Total Expenses (RM) 222,713.00
Saving For Emergency Use (RM) 27,287.00
1.3 Location Plan

Black Secret

Legend Music
Academy

The place or location plays an important role and is sure to affect our business.
That is why before setting up any business, we must first consider the location that we
choose on building up our business company. Our café is located at A68, Jalan 5,
CintaSayang Resort Home,08000 Sungai Petani. Kedah which away from all the hustle
and bustle of Sungai Petani town. There are few possible sites to be considered which our
café is near the residential area like CintaSayang Resort Home and Bukit Banyan in East
and Sejati area which locates in the south. There are a lot of shops beside our café like
Legend Music Academy and Black Secret (Western Food).

The reason why we choose this location because our target is serving a nice dessert
to the people around this residential area. Second, the rental for the shop away from the
town is cheaper than the shop in the town. Third, even though the café away from the
town, consumers are willing to travel for a distance to have a taste of nice food with an
affordable price.Fourth, sufficient parking space and space road for loading goods and
entrance giving an advantage to us in doing the business daily either in management or
sales perspective.
2.0 BIBLIOGRAPHY

Website:

AkranI, Gaurav.(2011). What is Business? Meaning Definitions Features of

Business.Retrieved February 20, 2019, from http://kalyan-
city.blogspot.com/2011/03/what-is-business-meaning-definitions.html?
m=1
Reddy, Namratha. (2018). The Nature and Purpose of Business.Retrieved February 20,
2019, from https://www.toppr.com/bytes/nature-and-purpose-of-business/