Business and Entrepreneurship in Malaysia

MPU3343

StreetStone Car Rental and Services

Group:

Muhammad Arif bin Ahmad 1161303714

How Zheng Fung 1122700747

Muhd Shahidan Aiman bin Marzuky 1161302821

Muhammad Faiez bin Amran 1161303093

Omar Hany Sayed Hamed Khatab 1161302888

Ahmad Awadh Salem bin Wazir

1122702548

Lecture:

Pn. Hasliza Bt Hassan

Submission:

January 2017

1
 TABLE OF CONTENTS

Item Page
1.0 Introduction 4
1.1 Name of the company 4
1.2 Nature of the business 4
1.3 Location of the business 4
1.4 Date of commencement 4
1.5 Factors in selecting the proposed business 4
1.6 Future prospects of the business 4
2.0 Purpose of business plan 5
3.0 Executive Summary 6
3.1 Name of company 6
3.2 Company address and telephone number 6
3.3 Form of business 6
3.4 Date of registration and registration number 6
3.5 Name of bank and account number 6
4.0 Background of Proposed Business 7
4.1 Physical location 7
4.2 Distance from source of raw material 7
4.3 Availability of manpower 7
4.4 Transportation facilities 7
4.5 Distance from customers 7
4.6 Basic amenities 7
5.0 Administration Plan 7
5.1 Logo, vision, mission and objectives 8
5.2 Company organizational structure 8
5.3 Remuneration plan 9
5.4 Administration manpower planning 9
5.5 Administration manpower requirements 9
5.6 List of office equipment and supply 10
5.7 Administration budget 10
6.0 Marketing Plan 11
6.1 Description of product/service 11
6.2 Target market 11
6.3 Market size 11
6.4 Competitor analysis 11
6.5 Market share 12
6.6 Sales forecast 12
6.7 Marketing strategy 13
6.8 Marketing manpower planning 13
6.9 Marketing manpower requirements 13
6.1 Marketing budget 13
0

2
C. TABLE OF CONTENTS

Item Page
7.0 Operations Plan 14
7.1 Process flow chart 15
7.2 Production schedule 16
7.3 Operations layout plan 17
7.4 Material requirement 18
7.5 Machine and equipment requirement 18
7.6 Operations manpower planning 19
7.7 Operations manpower requirement 19
7.8 Operational budget 19
8.0 Financial Plan 20
8.1 Project implementation cost 20
8.2 Sources of finance 20
8.3 Cash flow statement 21
8.4 Profit and loss account 21
9.0 Risk Analysis 22
10. Appendices 23
0

3
MAIN BODY OF BUSINESS PLAN

1.0 Introduction

1.1 Name of company

Our company name is StreetStone Sdn Bhd. We choose this name because we are all
like the the street stone before this company accept us in. We believe than everyone should be
given an opportunity in this life and everyone can be successful if they are willing to fight for
it.

1.2 Nature of business

StreetStone offers services in three primary areas that is car rental, car wash and also
car services. In order to do so, StreetStone will maintain all our services with the latest car.
Our competitive differences include professionally maintained car, insurance, and our 24-
hour scheduling service that will allow greater flexibility of our car at any times.

1.3 Location of business

This is a home office, our company is located at No 8,Jalan reko mutiara 1/7C,Taman
reko mutiara,43000 Kajang. A two-car garage is also rented in nearby area. There are no
offices outside besides of this place. We want to try maintain efficient head office fleet
control management, a sophisticated network of cell phones and two-meter shortwave
communication, in conjunction with land lines, are implemented by the company.

1.4 Date of commencement

We have decided to start our business of our company on 18th January 2017 because
we believe that date have it own meaning and feng shui that is going to prosper our business.

1.5 Factors in selecting proposed business

The reason behind this idea is because we want to offers cheap and affordable,
professionally- maintained car because we find out that it is difficult for a student to find a car
for rental near bangi that is reasonable in price. That is why we decided to open up a safe and
effective car rental company to help student rent a car with affordable prices.

1.6 Future prospects of business

In the near future, STREETSTONE plan to enhance our car rental position by
acquiring complex, high-performance, single engine luxury car for commercial and rental.
We also want to expand our business not just in bangi and kajang but also to all Malaysia
Peninsular with approximately 30 branch of shop in 10 years time. We also plan to conduct
up to the minute car scheduling through the use of the internet and an online business
website.

4
2.0 PURPOSE OF BUSINESS PLAN

I think the most important about business plan is because it contains all of our product
information, manpower and financial estimates and our plans for the future. As we try to
grow our business, we should refer to our business plan, according to the Small Business
Administration. When we decide to make changes to our business, those changes should be
reflected in our business plan. When we make updates to our business plan, we get to see how
our proposed changes will affect our entire business. our business plan reminds us of why we
started our business in the first place, what our original goals were and how business changes
will affect our original vision

As we begin to start our business, and even as our business moves along, we will
constantly need to concern yourself with financing our business. Financing concerns begin
with the start-up costs and then continue with business expansion and new product
development. When we look for outside financing, one of the first things the investor will
want to see is our business plan, according to Inc.com. Private investors, banks or any other
lending institution will want to see how we plan on running our business, what our expense
and revenue projections are and whether or not our plans for the future are attainable with the
business we have created. All of this can be answered by a well-written and thorough
business plan.

Starting our own business can seem like a daunting task if we have never done it
before. When we break down our business into a business plan, it can motivate us because it
presents the business in an organized fashion, according to the University of Colorado. When
we spend the time to outline our business in detail, we begin to understand what it will take to
get our dream off the ground. Following a business plan can help us to map out the growth of
our company and give us confidence when we need it.

As our business grows, we will need to consider adding executives to our team that
can help move our company in the right direction. A business plan will help executive talent
see our business vision and determine whether or not our company is a worthwhile
investment of time and resources.

5
3.0 Executive Summary

3.1 Name of company

Our company name is StreetStone Sdn Bhd. We choose this name because we are all
like the the street stone before this company accept us in. We believe than everyone should be
given an opportunity in this life and everyone can be successful if they are willing to fight for
it.

3.2 Company address and telephone number

This is a home office, our company is located at No 8, Jalan reko mutiara 1/7C,Taman
reko mutiara,43000 Kajang. A two-car garage is also rented in nearby area. There are no
offices outside besides of this place. We want to try maintaining efficient head office fleet
control management, a sophisticated network of cell phones and two-meter shortwave
communication, in conjunction with land lines, are implemented by the company. Here are
the number that the customer can contact us.

Office 03-5851399
Mobile 0109874846
Fax- 03-5851399

3.3 Form of business

We use partnership form because partnerships are relatively easy to establish,

however we had to invested some time in developing the partnership agreement. With the six
of us partner together, it is easier for us to raise the fund to start our business. Type of
partnership we use are joint venture. We as a partners divide responsibility for management
and liability, as well as the shares of profit or loss according to their internal agreement. We
also give equal shares unless there is a written agreement that states differently.

6
4.0 BACKGROUND OF PROPOSED BUSINESS

4.1 Physical location

StreetStone is located near the Universiti Kebangsaan Malaysia and in front of

Cheras-Kajang main road which is also near the Bangi Industrial Area. A two-car garage is
also rented in nearby area. There are no offices outside besides of this place. We want to try
maintaining efficient head office fleet control management, a sophisticated network of cell
phones and two-meter shortwave communication, in conjunction with land lines, are
implemented by the company.

4.2 Distance from the source of raw material

Near the KK supermarket that is only 0.5 miles away from our shop. We also have a
spare part shop at the nearby kajang town where we can buy all the stuff for our workshop.
The hardware shop can also be finding at the kajang town.

4.3 Availability of manpower

Our manpower we can obtain from the nearby Kajang town and also from nearby
college and university . The availability of employee is easy to find as nearby college and
university produce a lot of skilful labour for the industry. As for unskilled labour, we can
easily recruit from kajang town as there is a lot of workers from the Bangladesh who is
unemployed around there.

4.4 Transportation facilities

Our company is near Station Kajang bus stop and also near Kajang Cheras
Highway where our customer can find our facility easily because near the main road. Our
customer can also come to our shop by using the bus.

4.5 Distance from customers

We target that our customer are come from the college near our company which are
German Malaysian Institute, Kolej Polytech Mara bangi and also Universiti Kebangsaan
Malaysia students. The distance for come to our place is not more than 2 miles only.

4.6 Basic amenities

STREETSTONE offers services in three primary areas that is car rental, car wash and
also car services. In order to do so, STREETSTONE will maintain all our services with the
latest car. Our competitive differences include professionally maintained car, insurance, and
our 24- hour scheduling service that will allow greater flexibility of our car at any times.

7
5.0 ADMINISTRATION PLAN

5.1 Logo, vision, mission and objectives

Vision

Our company vision is to become the biggest transportation service company in

Malaysia. We choose this vision because we want to motivate ourselves to always
push ourselves to the limit so that we can compete with all the big company here in
the market.

Mission

Our mission is to become the premiere hourly car service within a 10-mile radius in
kajang. We also want to become leader in transportation business with affordable
price within 10 years and will become the best company in Malaysia. We will provide
our customer with a safe and effective plan so that they can rent our car without any
necessary risk. There is a lot of improvement that we need to implement in our
company to achieve our main target because the market today is really tough.

Objectives

The objective of our company is to provide the best car rental services for the people
who do not have a car. We also want to provide a car rental services with the
affordable price and suitable for students. This will be achieving by:

- Reduce the cost to lower the price of car rental services

- Give the best services to customer

5.2 Company organizational structure

General Manager
Mohd Arif

Operations Manager Administration Manager Marketing Manager

Omar Muhd Shahidan Faiz Amran

8
5.3.1 Staff salary

We make our payment by using bank in process to all our staff. Our date of payment
is 5 days before the end of the month. And we pay our staff by monthly basis.

5.3.2 Working hours

Our business is follows the office hour like the other company. Thats mean our staff
have to work 9 hours per day and also have to work 6 days a week. Office is start operating at
9 am to 6 pm for only our staff. But for us as a manager we will work 5 hours extra because
we have on call service for our customers that want to rent cars or return cars. For lunch our
will start from 1 pm until 2 pm. This is because we want to give our staff time to eat and pray
so they wont have to rush. For our staff do not have shift system and only office hours.

5.3.3 Medical allowance

For medical allowance we provided rm100 for each staff for a month. But if our
staffs get involve in a bad incident and need more money for medical, we will provide the
money for them. And also a medical insurance.

5.3.5 Maternity benefits

No maternity Benefit

5.3.6 Annual leave and sick leave

For annual leave we will give by month. Thats mean each month our staff will get 1
day for annual leave. The annual leave can be keep for the next month. But annual leave must
be used before the end of the year. For sick leave, our staff just can call us and inform us if
they cannot come to work but they must show their MC when they coming to work.

5.4 Administration Manpower Planning

Position Number Job description

CEO 1 A chief executive officer, the highest-ranking person in a
company or other institution, ultimately responsible for making
managerial decisions.
Administration 1 Administrative managers oversee the support operations of an
Manager organisation. They ensure that there is effective information
flow.
Administration 1 The administrative officer is in charge of overseeing processes
Officer and personnel to make sure that the company is able to meet
certain defined goals.
Clerk 2 a person employed in an office or bank to keep records and

9
 accounts and to undertake other routine administrative duties

5.5 Administration Manpower Requirements

Position No Monthly EPF SOCSO Total Big Total

salary (13%) (2%) (RM) (RM)
(RM) (RM) (RM)
CEO 1 5000 650 100 5750 5750
Administratio 1 3500 455 70 4025 4025
n manager
Administratio 1 2500 325 50 2875 2875
n Officer
Clerk 3 1200 156+24 = 180 1380 4140
Total 16790

5.6 List of Office Equipment and Supply

Item Quantity Price per unit Total (RM)

(RM)
Common PC 13 2500 32500
Chair 26 35 910
Table 13 60 780
Photostat machine(Fax) 2 200 400
Total 34590

5.7 Administration Budget

Item Fixed Expenses Monthly Other Expenses

(RM) Expenses (RM) (RM)
Office Equipment 34590
Salary + EPF + SOCSO 16790
Utilities 300
Shop Rental 5000
Total 34590 22090
Big total 56680

10
6.0 MARKETING PLAN

A marketing strategy is something that affects every part of an organisation. It is about

using everything that a business does to create value for others. This includes customers but it
also benefits employees and shareholders. The main purpose of a marketing strategy is to set
out the means by which agreed marketing objectives are to be achieved.

A common marketing objective is to achieve growth. There are a number of ways in which
organisations can grow. For example, they might expand internally. This is known as organic
growth. A quicker but higher risk option is external or inorganic growth. This involves
acquiring or merging with another business.

6.1 Description of products/services

STREETSTONE offers services in three primary areas that is car rental, car wash and
also car services. In order to do so, STREETSTONE will maintain all our services with the
latest car. Our competitive differences include professionally maintained car, insurance, and
our 24- hour scheduling service that will allow greater flexibility of our car at anytime.

6.2 Target market

ITEMS EXAMPLE
Location Bangi & Kajang
Age Teenagers (70%) Adults (30%)
Gender Male (67%) Female (33%)
Segment Individual (95%) Industry (5%)
Hobbies -like to travel and vacation
-like modification
-like automobile

6.3 Market size

Total population in Bangi and Kajang = 95000

Estimated gender percentage = male (67%) female (33%)

11
6.4 Competitor Analysis

Competitor Strength Weakness

Sarip Dol -well known around -poor maintenance
Sg.Tangkas ( Car condition )
Pak Mat -affordable -not comfortable
-well known -dirty (cockroaches)
Bangi Az Car Rental -good service -expensive
-branded cars -less known to customer
STREETSTONE -cheapest among all of the -less known
competitors
-good services of cars
-comfortable

6.5 Market share

Competitor Marke Amount (RM)

t share
%
Sarip Dol 35 RM 1216950 x 35% = RM 425,932,50
Pak Mat 25 RM 1216950 x 25% = RM 304,237,50
Az Car Rental 30 RM 1216950 x 30% = RM 365,085
STREETSTONE 10 RM 1216950 x 10% = RM 121,695

6.6 Sales forecast

Month Sales (RM)

1 11500
2 10000
3 30000
4 53000
5 55000
6 75000
7 81000
8 97000
9 100300
10 120000
Total 632,800

12
6.7 Marketing strategy

Criteria Description

Product and Maintain all our services with the latest car. Our competitive differences
service include professionally maintained car, insurance, and our 24- hour
strategy scheduling service that will allow greater flexibility of our car at anytimes.

Pricing For the first few month , we decided to lower our prices so that we can
strategy attract more customer to get to know our company first. We give half price
for the first month. Than we will increase our price the same with our
competitor but we increase our services better than them so that
customer will still attract to come to us.

Place and The reason we choose this place is because this place is in the middle
distribution between all the nearby college ad univerisity. Then we also trust the feng
strategy shui here because this place can attract a lot of customer when use by the
previous owner to run their business. It also easy to find and wont give
any trouble to customer to find. This place also has a big number of
population and has wide area for our cars to park

Promotion We will give the half price for the 1 month because profit is not important
strategy but finding regular customer is more important. Then we will also give
extra hour for the first ten customers for the first month. We hope this will
increase the number of customer for the upcoming month.

13
6.8 Marketing manpower planning

Position Number Job description

Marketing 1 Managing all marketing for the company and activities
Manager within the marketing department
Marketing Officer 1 Developing the marketing strategy for the company in line
with company objective
Clerk 2 Key in all the company data

6.9 Marketing manpower requirements

Position No Monthly EPF SOCSO Total Big Total

salary (13%) (2%) (RM) (RM)
(RM) (RM) (RM)
Marketin 1 3200 416 64 3680 3680
g
Manager
Marketin 1 1600 208 32 1840 1840
g Officer
Clerk 2 1000 130 20 1150 2300
Total 7820

6.10 Marketing budget

Item Fixed Expenses Monthly Other Expenses

(RM) Expenses (RM) (RM)
Signboard and Banner 8000
Salary, EPF and SOCSO 7820
Advertisement 2000
Opening ceremony 4000
Charity event 500
New cars with company 2000

14
 stickers
Company T-shirt 500
Total 8000 10820 7000
Big Total 24,820

7.0 OPERATIONS PLAN

Operational Plan DOES present highly detailed information specifically to direct

people to perform the day-to-day tasks required in the running the organisation. Organisation
management and staff should frequently refer to the operational plan in carrying out their
everyday work.

The purpose of the Operational Plan is to provide organisation personnel with a clear picture
of their tasks and responsibilities in line with the goals and objectives contained within the
Strategic Plan.

Basically, the Operational Plan is a plan for the implementation of strategies contained within
the Strategic Plan. It is a management tool that facilitates the co-ordination of the
organization resources (human, financial and physical) so that goals and objectives in the
strategic plan can be achieved.

15
7.1 Process flow chart

Loan from bank to start business

Buy cars for customer to rentsda

Car transported

Apply sticker to every cars

Place car at company garage

Advertisement to promote

Hire workers for inspection

Rent cars to the customer

Receive payment from customer

16
7.2 Production schedule

Month Sales forecast

(RM)
1 RM 11500
2 RM 10000
3 RM 30000
4 RM 53000
5 RM 55000
6 RM 75000
7 RM 81000
8 RM 97000
9 RM 100000
10 RM 120000
Total RM 632,800

7.3 Operations layout plan

17
7.4 Material requirement

Raw material Price per unit Quantity Total cost

(RM) (RM)
Receipt Paper 2 2 books 4.00
Cotton Rag 50 1 bundle 50.00
Soap 100 1 bottle 100.00
Polish 88 1 bottle 88.00
Engine Oil 80 20 bottle 1600.00
Brake Oil 10 10 bottle 100.00
Paper 50 1 box 50.00
Ink Printer 55 1 bottle 55.00
Glove 30 1 bundle 30.00
Brush 20 1 plastic 20.00
Petrol 2 100 litre 200.00
Total 2297.00

7.5 Machine and equipment requirement

18
 Permanent machine/equipment Price per unit Quantity Total cost
(RM) (RM)
Air Compressor 2875 2 5750
Tyre Machine 4500 1 4500
Shop Decoration 2000 1 2000
Cash Register 3000 1 3000
Hydraulic Jack 5000 1 5000
Tooling Equipment 4500 1 4500
Total 24750

7.6 Operations manpower planning

Position Number Job description

Operation 1 Manages,plan,direct and coordinate the operation
manager
Sales Officer 1 Make sure the company make profit
Mechanic 2 Services the car
Workers 8 Consist of runner and car cleaner

7.7 Operations manpower requirement

Position No Monthly EPF SOCSO Total Big Total

salary (13%) (2%) (RM) (RM)
(RM) (RM) (RM)
Manager 1 3000 390 60 3000 3450
Officer 1 2000 260 40 2000 2300
Mechani 2 1800 234 36 3600 3870
c
Workers 8 1500 195 30 12000 12225
Total 21845

7.8 Operations budget

Item Fixed Expenses Monthly Other Expenses

(RM) Expenses (RM) (RM)
Machine and Equipment 24750

19
 Raw material 2297
Salary, EPF and SOCSO 21845
Anual dinner 2000
Total 24750 48892 2000
Big total 75642.00

8.0 FINANCIAL PLAN

8.1 Project Implementation Cost

Item Cost (RM)

A. Fixed Expenses
Administration department 34,590
Marketing department 8,000
Operations department 24,750
Subtotal (A) 67,340
B. Monthly Expenses
Administration department 22,090
Marketing department 10,820
Operations department 48,892

20
 Subtotal (B) 81,802
C. Other Expenses
Administration department -
Marketing department 7,000
Operations department 2,000
Subtotal (C) 9,000
Grand Total (A+B+C) 158,142

8.2 Sources of Finance

Sources Amount (RM)

A. Own contribution
Cash 60,000
Assets (land and building) -
Subtotal (A) 60,000
B. External Sources
Bank loan 440,000
C. Others 10,000
Grand Total (A+B+C) 510,000

8.3 Cash flow statement

Month 1 2 3 4 5 6
A. CASH INFLOW
Owner contribution 60,000 0 0 0 0 0
Bank loan 440,00 0 0 0 0 0
0
Cash sales 11,500 10,000 30,000 53,000 55,000 75,000
Total cash inflow 511,500 10,000 30,000 53,000 55,000 75,000
B. CASH OUTFLOW
Total fixed expenses 67,340 0 0 0 0 0
Total monthly expenses 81,802 81,802 81,802 81,802 81,802 81,802
Total other expenses 9,000 500 500 500 500 500
Total cash outflow 158,14 82,302 82,302 82,302 82,302 82,302
2
C. CASH INFLOW CASH 353,35 (72,302 (52,302 (29,302 (27,302 (7,302)
OUTFLOW 8 ) ) ) )

21
Opening Balance 0 353,358 281,056 228,754 199,452 172,15
0
Closing Balance 353,35 281,056 228,754 199,452 172,150 164,84
8 8

8.4 Profit and Loss Account

Item Amount (RM)

Sales for 6 months 234,500
Direct cost: Operations budget 75,642
Gross Profit: Sales Direct cost 158,858
Indirect cost
- Administration budget 56,680
- Marketing budget 24,820
Total indirect cost 81,500
Net Profit: Gross Profit Indirect cost 77,358

9. RISK ANALYSIS

We all have sit in a table and discuss about the potential risks that we may encounter
through our business operation and had come out with the strategies to counter it. We
already categorize the problem into different area such as operation, marketing, and
financial. Stated the measures to address those risks:

Area Potential Risk Strategies

22
Operation Lack of spare parts in case of Contracting with reputable
happening any damage in the company that can afford any
car. spare part to our company.

Marketing Lack of business promotion Distributing leaflets to

targeted customers to
promote the service.

Advertise services through

online social media such as
WhatsApp, Facebook, Twitter
Competition with others and Instagram
Seller.
Provide affordable price and
promotion for customers
Financial Fraudulent Finances Every financial transaction is
recorded

Financial records will be

audited at the end of each
year

Business and Entrepreneurship in Malaysia

MPU3343
Tasks Distribution Summary
Group Name: NESHK Printing

Group Members

23
No Name Student ID Contributions Phone
. number

1 (G.L.) Mohd Arif B Ahmad 116130371 Marketing plan 01123439043

4

2 How Zheng Fung 112270074 Executive Summary 0123199232

7

3 Muhd Shahidan Aiman B 116130282 Operational plan 0133884119

Marzuky 1

4 Muhammad Faiez B Amran 116130309 Financial plan 0148088085

3

5 Omar Hany Sayed Hamed 116130288 Risk Analysis 01149899881

Khatab 8

6 Ahmad Awadh Salem B 11227025 Compile Document and 0123735141

Wazir 48 Slide

Additional remarks:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
_________
*Attach this document in the last page of written report.

24
25