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1.0

Executive Summary

The concept of Endless Computer Center is to combine the services of computer business that available in the current market to become a one-stop computer business center. The services that provided are computer retail, technical support & maintenance, cyber caf with high speed broadband, and also software learning class. Endless Computer Center will be planned to locate in area with high population, which is the Kajang Town. Our targeted market will be the people in society which is come from various background and despite of age. The main purpose of our company is to make profit by giving services, while in the same time we can provide the opportunities to people to keep updated with latest technology, and also the enhancement of information technology and computer knowledge.

2.0

Company Summary

2.1

Name and Background of Company

Endless Computer Center, soon to be located in Kajang Town, will offer the community easy and affordable access to the Internet. Endless Computer Center will provide full access to email, WWW, FTP, Usenet and other Internet applications such as Telnet and Gopher. Endless Computer Center will also provide latest IT product selling with well trained promoters and technicians to explain the nature of product to customers. Endless Computer Center will appeal to individuals of all ages and backgrounds. The instructional Internet classes and the helpful staff that Endless Computer Center provided will appeal to the customer that does not discriminate them with the age for computer learning. This educational aspect will attract young and

elder members of the community who are rapidly gaining interest in the unique resources that online communications have to offer. The downtown location will provide business people with convenient access to their morning coffee and online needs. 2.2 Type of Ownership

Endless Computer Center is a privately held Limited Liability Corporation.

2.3

Team of Management

Yong Yew, the founder of Endless Computer Center, is the majority owner. Zulfadli, Mohd Alef, and Yap Kin Hong, all hold minority stock positions as private investors.
Neoh Yong Yew (Founder Of Company)

Yap Kin Hong Computer Retail (Financial)

Mohd Alef Cyber Cafe (Marketing)

Zulfadli Software Lecture (Communication)

2.4

Vision

Endless Computer Centers vision is to be our customers first choice of computer center through the creation of a unique, upscale, innovative environment that will distinguish Endless Computer Center from local computer center.

2.5

Mission

As the popularity of the Internet continues to grow at an exponential rate, easy and affordable access is quickly becoming a necessity of life. Endless Computer Center

provides communities with the ability to access the Internet, enjoy a cup of coffee, and share Internet experiences in a comfortable environment. People of all ages and backgrounds will come to enjoy the unique, upscale, educational, and innovative environment that Endless Computer Center provides. 3.0 3.1 Products and Services An Overview of Computer Business in Malaysia

Computer businesses in Malaysia currently have such as retailer, services, software learning class and cyber caf. Currently existing computer shops selling of product & customer services have to be improved. For example, the lecturer for several software learning center in Malaysia, mostly in Kajang lack of professional knowledge neither in software nor hardware. Besides that, students are difficult to search for software learning lecture in Malaysia. If there is software class available, the lecturer fee is usually high. By opening Endless Computer Center we will provide the entire thing at lower cost. Currently most of the existing internet cafs environment is more to the role of game station, not suitable for learning purpose, thus the market trend now is lack of computer shop that operating in one-stop model, which is combination of selling product, customer service, software lesson, and entertainment. Therefore, Endless Computer Center provide several section in our premise like cyber caf, software learning center, and computer shop for relaxing time.

3.2 3.2.1

Business Concept of Endless Computer Centre Keys to Success

The keys to the success for Endless Computer Center are:

The creation of a unique, innovative, upscale atmosphere that will distinguish Endless Computer Center from other local computer center and future Internet cafes.

The establishment of Endless Computer Center as a community hub for socialization and entertainment.

The creation of an environment that won't intimidate the novice user. Endless Computer Center will position itself as an educational resource for individuals wishing to learn about the benefits the Internet has to offer.

Great services and computer items. Company Locations and Facilities

3.2.2

A site has been chosen at Kajang Town. This site was chosen for various reasons, including:

Proximity to the downtown business community. Proximity to trendy, upscale restaurants such as KFC. Proximity to Kajangs Bus Station. Parking availability. Low cost rent - $.85 per square foot for 1700 square feet. High visibility.

All of these qualities are consistent with Endless Computer Center's goal of providing a central hub of communication and socialization for the Kajang community.

3.2.3

Services

Endless Computer Center will provide full access to email, WWW, FTP, Usenet and other Internet applications such as Telnet and Gopher. Printing, scanning, and introductory courses to the Internet will also be available to the customer. Endless Computer Center will also provide latest IT product selling with well trained promoter/ technician to explain the nature of product to customer.

3.2.4

Service Description

Endless Computer Center will provide its customers with full access to the Internet and common computer software and hardware. Some of the Internet and computing services available to Endless Computer Center customers are listed below:

Access to external POP3 email accounts. Customers can sign up for a Endless Computer Center email account. This account will be managed by Endless Computer Center servers and accessible from computer systems outside the Endless Computer Center network.

FTP, Telnet, Gopher, and other popular Internet utilities will be available. Access to Netscape or Internet Explorer browser. Access to laser and color printing. Access to popular software applications like Adobe PhotoShop and Microsoft Word.

Endless Computer Center will also provide its customers with access to introductory Internet and email classes. These classes will be held in the afternoon and late in the evening. By providing these classes, Endless Computer Center will build a client base familiar with its services. The computers, Internet access, and classes wouldn't mean half as much if taken out of the environment Endless Computer Center will provide.

3.2.5

Fulfillment

Endless Computer Center will obtain computer support and Internet access from Bellevue Computers located in Kajang. Bellevue will provide the Internet connections, network consulting, and the hardware required to run the Endless Computer Centerwork. Allann Brothers will provide Endless Computer Center with coffee equipment, bulk coffee, and paper supplies.

3.2.6

Technology

Endless Computer Center will invest in high-speed computers to provide its customers with a fast and efficient connection to the Internet. The computers will be reliable and fun to work with. Endless Computer Center will continue to upgrade and modify the systems to stay current with communications technology. One of the main

attractions associated with Internet cafes, is the state of the art equipment available for use. Not everyone has a Pentium PC in their home or office.

3.2.7

Future Services

As Endless Computer Center grows, more communications systems will be added. The possibility of additional units has been accounted for in the current floor plan. As the demand for Internet connectivity increases, along with the increase in competition, Endless Computer Center will continue to add new services to keep its customer base coming back for more.

3.3

Competitive of Computer Business

So far there are several Computer shops, Cyber cafs, and software learning centers in Kajang Town. The most advance computer shop are Silver D Tech Computer Center, which have product and services of reformat laptop, notebook and PC. This computer shop also provides all the stuff about computer such as speaker, mouse, keyboard, cooling pad and so many others. The most advance cyber caf are Speed Zone Cyber Cafe, which provide services of accessing internet, printing, scanning and faxing, and the rate of payment is quite high compared to Endless Computer Center. The most advance software learning centre are Boshra1 Web Center, which provide lecture of html, xhtml, php, asp, .net, sql, perl, xml, c, java, and action script. While for software they can teach about Photoshop, Corel draw, Frontpage, Dreamweaver, Illustrator and Flash Animation. For our company, the computer retail department will provide the products and services that are more than Silver DTech Computer Center, and our cyber caf have services and rate that are more reasonable as compared to Speed Zone Cyber Cafe. For software learning class, we provide the lessons that are more professional and useful in engineering such as .NET, Advertisement Design, AJAX, ASP, Banner

Design, Brochure Design, Business Cards, CMS, Copywriting, Corporate Identity, CSS, eCommerce, Fashion Design, Flash, Forum Software, Graphic Design, HTML, Icon Design, Javascript, Joomla, jQuery / Prototype, Linux, Logo Design, Magento, Microsoft, Microsoft Expression, MySQL, OSCommerce, Paypal API, PDF, Photoshop, Photoshop Design, PHP, Prestashop, Script Install, SEO, Shopping Carts, Software Testing, SQL, Stationery Design, System Admin, Templates, UNIX, Video Services, Web Security, Website Design, Website Testing, XML, YouTube, Zen Cart.

4.0 4.1

Resources Requirement Premise To start a business, it is necessary for having a premise which can be used as

product display or store. After having discussion within our business partners, we propose that the building requirement must be at least double storey shop lot, which has computer retail at ground floor, and first floor is for cyber caf and software learning class. However, the ideal building will be 3 storey building, where ground floor is for computer retail and service centre, 1st floor is for cyber caf, and 2nd floor is for software learning centre. After doing some surveys on shop prices in Banndar Baru Bangi area, we found that the price of 3-storey shop is about RM 750,000 to RM 1,000,000. However, we choose a shop priced RM 800,000 which located at kajang because there will be a lot of potential customers available in there. Besides, there are a lot of parking lots near the shop which ease customers difficulty in finding parking lot to put their car or motorcycle. After choosing the shop, next thing to do would be about the shop decoration and renovation. After the some roughly calculation, the shop need about RM 150,000 to do the decoration which include painting, purchase and installing of ceramic tiles, air conditional and lamp installation and others.

4.2

Computer Retail Department

For computer retail department, there are requirement of latest model of computer, accessories, hardware and computer components. These will cost about RM 200,000 for buying computer and computer components like speaker, hard disc, RAM driver, screen, motherboard, graphic card and etc. The accessories we need to buy are keyboard, mouse, earphone, printer, printer ink and etc. Moreover, we have to purchase some spare parts which cost about RM 15,000 for computer service and firmware replacement. For computer service department, we decided to hire 3 experienced and well trained technicians to help in repairing computer device which return back by customers. The salary for one technician is about RM 14,400 one year. Besides, technicians can also do some maintenance on computer in cyber caf by repairing firmware or formatting the computer.

4.3

Cyber Caf We need some good condition computer but not necessary new computer

since these computer are only for internet surfing or gaming purpose. For this section, we need about 50 computers which cost RM 2,000 each, total is about RM 100,000. We also need 50 set of computer table and chair which cost about RM 500 each set and total is RM 25,000. For internet connection, we will use high speed broadband and network to make sure our customers can fully enjoy the internet surfing and online gaming. The cost for broadband installation is about RM 1000 and the monthly broadband fee is RM 188.

4.4

Software Learning Class For software learning class, there are requirement on experienced and certified

lecturer, well trained tutors or assistants. For this purpose we consider to hire 3 tutors to take over the software learning class and one tutor salary is expected about RM 14,400 one year. Besides, we also need 30 computers which is RM 2,000 per set and 30 set of computer table and chair which RM 500 per set for the class. Moreover, we

also have to spend about RM 15,000 in buying teaching equipment like slide show projector. For software, we will need to buy two type of software which is MATLAB for engineering drawing and UPS for accounting. Because it is for business purposes, we need to buy genuine and licensed software to install on computer. MATLAB software cost about RM 300 for each and RM 200 for each UPS software. Below is the summary of total cost which required in our business plan: Category Premises Detail 3-storey shop shop decoration Computer Department Retail Accessories for sale Technicians X 3 Spare parts Cyber Caf Computer X 50 Computer table & chair X 50 Broadband network and fee Software Learning Class Computer X 30 Computer table & chair X 30 Tutors X 3 Teaching equipment Software (MATLAB) X 15 Software (UPS) Total X 15 Cost (RM) 800,000 150,000 200,000 43,200 15,000 100,000 25,000 1,118 60,000 15,000 43,200 15,000 4,500 3,000 1,475,018

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5.0 5.1

Goals and Targets Return Money and Get Famous

At the beginning, our company is put an effort to cover all initial costs of developing the company in 2 years period. Our strategic marketing plan will ensure this goal to be successful. After one year, our shop will able to be well-known by the citizens in Kajang area. Furthermore, at least in 5 years period, our shop will be acknowledged by all Selangor as the best computer and technology center.
5.2

Profit

In 5 years we target to spread out our prospect by developing 4 new branches. The branches are the idea to strengthen our business in this country and compete with the other major company in this industry. In the mean time, we tend to increase our profit year by year. 5.3 Available in Latest Computer Model

To be a computer and technology center, our equipments should be updated with the recent technology. Thus, we expected we are able to provide a new computer model in 2 years period in our company. After 2 years period, our company will be fully equipped with the latest computer and other latest accessories.
5.4

The Best Software Lecture

Software learning lecture is one of the major part in our business. In order to satisfy customers and students demand, we are always updating the lectures with the recent information and software. Hopefully, we will provide the best software learning lecture for customers in 2 years period.

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High Quality Internet Connection

Our company is customers' bridge to find their way to link with technology world. The most important thing in our company is to convince people with the best internet access we have. Hence, we will ensure our internet access is not a disappointment for any customers who come to our cyber cafe.
5.6 Advices and Consultancies

Good relationship with the customers is the best way to attract them to come to our company. Good communication is the key to get to the point. Here, we will listen to all their problems related to the computer and technology world. Then, we will provide them with the best advices and consultancies until their need are fulfilled.

6.0 6.1

Market Strategy and Implementation Summary Introduction

It is also refer to operation activities to give satisfaction to customer, such as quality, quantity and time. Furthermore, it also defined as the performance of business actions that direct the flow of good services from producer to target consumer or user. Firstly, marketing plan must capable give satisfaction customer needs and wants and then the profits, it considers a long term view to doing business time to time. These marketing activities also can increase and encourage the production of the company to produce the products and services. All of this marketing target can be achieved and done if all of the activities are carried out systematically. Lack of understanding of the marketing concept will give poor development product that failed to give users satisfaction. As the shop which selling products and services, we are prepared to give the best service to our customer.

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6.2

Targeted Market

Our products and services are expected to have advantages all people in residential areas, schools and campus areas. The communities are the main contributor of our shop and profit generation. Our customers are people in the group as follow: i. Residential area Those people are come from all layer of ages, such as kids, teens and adult are welcomed to come to our shop and learn new knowledge about computer and technology. By doing this, our company may contribute in helping to develop a technology educated society.

ii.

Schools Students are the best customers need our products and services. Most of the students are equipped by new technology gadgets. They have to know how to handle all of those gadgets well. Many technology violations occur nowadays. A proper place for them to catch up with the learning beside school is having tutor class at our learning centre.

iii.

Campus areas Most of them are educated people. A lot of researches are need of technology support. In order to complete assignment, they need basic software such Microsoft Excel for at least. Some of them are involved with advanced software who is need specialist to solve the problem. In our shop, we also provide specialist who are able to help them.

iv.

Market Size Currently, consumers electronic sales are rising in 2010 and expected to increase 21.6 % until 2014 in Malaysia. However, in October, consumer of computer and

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computer peripherals are decreasing by 18 %. The ability to find network of computers will be as backup plan. In Malaysia, electric and electronic industry is the major contributors to the economy by 41 %. We will see the expanding of this business for next five years.

6.3

Market Strategies

In our marketing strategies, we compete and give the best products and services to our customers. We decided to put our first business location near to residential areas, primary and secondary schools and campus areas around Kajang Town. The best location will determine better customers and competitors.

6.4

Pricing Strategies

Our price strategy depends on current price on every products and services. At the beginning, the price will lower or same as the current market price for every products and services.

6.5 6.5.1

Advertising Strategies Online Advertisement

Nowadays, many social networks are rising like facebook, twitter and so on. By using facebook we can spread up information of our shop among our members. With the help of our members the information will go further and increses the number of customer. There are several blogs also provide an advertisement column for free. It also can be helped advertise our shop effectively.

6.5.2

Booth

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Every year, there are PC and technology fair will be held in certain place like KLCC and campus areas. Their organizers will invite who are interested to join the fair by pay some amount of rent. By taking this opportunity, we can join and publish what we have to public.

6.5.3

Fliers

In residential areas, the best advertisement is by distributed fliers home by home. By that, the information will fairly spread out in residential area.

6.5.4

Poster

Poster is essential in order to call people to come to our shop. At the beginning of 1 3 months operation of business, we will paste our poster at various notice board and also advertisement board.

6.6

Sales Strategies

In sales strategy, we target to attract many people to buy our products and services. By setting up the good price, membership special offer, free gift for every purchases and flexible training fee, we believe we will go beyond in this business.

7.0

Financial Statement

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7.1

Balance Sheet (Assets)

Period ending 31/12/11 Assets Current Assets Cash Accounts Receivable Notes Receivable Inventory Total Current Assets Fixed Assets Buildings (net) Computer Computer Software Teaching Equipment (net) Furniture & Fixtures (net) Total Fixed Assets Intangible Assets License Total Intangible Assets RM 4,500 RM 4,500 RM 800,000 160,000 7,500 15,000 190,000 RM 1,172,500 RM 100,000 150,000 50,000 215,000 RM 515,000

Total Assets

RM 1,692,000

7.2

Balance Sheet (Liabilities & Owners Equity)

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Period ending 31/12/11 Liabilities & Owners Equity Current Liabilities Accounts Payable Notes Payable Accrued Taxes & Salaries Total Current Liabilities Long Term Liabilities Notes Payable Bonds Payable Total Long-term Liabilities Total Liabilities Owners Equity Common Stock (shares) Retained Earnings Total Owners Equity RM 400,000 RM 547,000 RM 947,000 RM 67,000 423,000 RM 490,000 RM 745,000 RM 80,000 10,000 165,000 RM 255,000

Total Liabilities & Owners Equity

RM 1,692,000

7.3

Income Statement

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Period ending 31/12/11 Revenue Net Sales Cost of Goods Sold Beginning Inventory Net Purchases Cost of Goods Less: Ending Inventory Less: Cost of Goods Sold RM 250,000 RM 360,000 RM 610,000 - RM 230,000 RM 380,000 RM 1,100,000

(1) Gross Profit (Gross Margin) Operating Expenses Selling Expenses Salaries Advertising & Supplies Total Selling Expenses General Expenses Office Salaries Services & Maintenance Depreciation Insurance Rent Utilities Miscellaneous Total General Expenses Total Operating Expenses (2) Net Income (Profit) Before Taxes Less: Income Tax Expenses (3) Net Income (Profit) After Taxes RM 80,000 RM 5,000 RM 86,400 RM 12,000 RM 98,400

RM 720,000

RM 146,000 RM 50,500 RM 90,000 RM 18,000 RM 25,000 RM 414,500 - RM 512,900 RM 207,100 - RM 57,988 RM 149,112

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7.4 i.

Financial Statement Analysis Liquidity Ratios

Current Ratio

= = 2.02

Quick (Acid-Test) Ratio

= = 1.18

ii.

Leverage Ratios

Debt to Owners Equity Ratio =

= = 78.67% iii. Profitability Ratios

Return on Sales

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= = 18.83 %

Return on Equity

= = 15.74 %

Basic Earnings per Share

= = RM 0.093 iv. Activity Ratios

Inventory Turnover

= = 1.58

7.5

Statement of Cash Flow for the year 2011, 2012, 2013 Year 2011 2012 2013

Source of Funds Beginning cash 100,000 -29788 203,540

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Sales/Svcs Income Sale of Assets Customer deposits Loans Contributed Capital Available Cash Use of Funds Salaries Operating expenses Capital Expenditures Tax Payments Total Cash Out Net Cash Flow

1,100,000 0 200,000 0 400,000

1,254,888 0 0 0 0

1,487,500 0 0 0 0

RM 1,800,000 RM 1,225,100 RM 1,690,950

86,400 512,900 1,172,500 57,988

135,000 690,780 130,000 65,780

160,000 835,000 140,500 79,432

RM 1,829,788 RM 1,021,560 RM 1,214,932 (RM 29,788) RM 203,540 RM 476,018

8.0 8.1

Risks Overview on Computer Business Catch Up With Latest Computer Model

As well known, advance technologies now a day will develop in speed of exponentially increased. Thus, most of the computer model that are available in previous will become out dated easily, and this will cause the old stock difficult to sold out, and this is one of the major risk for computer business, which is stagnant of stock. However, this problem can be solved by utilize the entire old model computer for company won use, such as software learning class and cyber cafs computer. This will help company to have enough sources for hardware utilities.

8.2

Lack of Students for Software Learning Class

For software learning class, the cost to get an genuine license for powerful software is relatively high as compared to normal software. Thus, this is a risk for company to

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have enough students so that the operation cost can be covered by learning fee. However, if there is the case that not enough students to organize a class, then the number of class will be reduced or merge with those small class to become a big class, and the remaining free time can utilize the computers for cyber-caf usage.

8.3

Lack of Expert for Software Teaching and Computer Services

To provide high quality of computer services, well trained or experienced technician are required. This type of employer are considered as full skilled and professional, so it require higher rate of salary payment to them as compared to normal worker. They can be considered as asset for company, which is the mobile asset. Mobile means that they have the probability and freedom to switch from one company to another company, provided they meet a better offer. Thus, to make sure this mobile asset to keep staying in this company, it is important to understand their need and any unsatisfied.

8.4

Existence of New Computer Centre as Competitive

Since there is an opportunity to make profit from computer business, so it is not surprise to have new growing up company which is base on computer business. However, if the new company having the same business concept with our company, which means our company is facing a great competitor. To overcome the competition, our company has to make sure our service to client is fulfill and satisfied their requirement. Besides that, company will increase creativity in advertisement and promotion to attract more customers. Of course, the core element to convince customer that we always ready to provide best service to them, is by serve them sincerely.

8.5

Unfavorable Accidents

Although those unfavorable hazard such as fire, flood, stock stolen there are covered by insurance, but it will still affect the operation of company, especially within the

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first or two years in the beginning of business. Once the accidents happen, our company would have to set up everything start from beginning again, this may cause a big financial problems to company. Thus, to minimize the impacts from those accidents, our company has to always caution with the electrical system in company, monthly maintenance on computers in company, and also emergency passage to transfer the stocks once fire or flood.

9.0

Conclusion

As a summary, to execute our computer business canter in proper order and well organized, we have to clarify the near-term resolution and long-term resolution. For near-term resolution, we have to solve it prior the initialization of business and during the beginning of business. Whereas for long term resolution means that we have to solve it continuously along the process of our business. In near-term resolution, the issues that need to taken into consideration are initial funding, seek for business location, company registration, purchasing of stock for business and tools for administration (current and non-current assets), formation of management team, and also promotion and advertising. Among all over the near-term resolution, initial funding or initial investment is the most important to be settled. Without financial support at the beginning, almost all the plan cannot be done. One of the important considerations of near-term resolution is that all the related issues have to be well planned and settled before business operation started or in the shortest time period during the commerce of business in order to ensure following business would not be affected. For long-term resolution, the issues that need to taken into consideration are source of stocks, location for branches, marketing strategy, recruitment of employees for the formation of stronger management and executive team, investment in other computer based related industries. Long-term resolution have to be revised from time to time, so that it can suit to growth of company, and able to solve problems that facing by company accordingly. In conclusion, Endless Computer Center will consider as much as possibilities of near-term resolution and long-term resolution to make sure companys growth are

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on the right track. Well planned management system also be considered to make sure company is managing well for resources of human, time, and money.

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