CAWANGAN PULAU PINANG KAMPUS PERMATANG PAUH

FACULTY OF HOTEL AND TOURISM MANAGEMENT

ENT300
FUNDAMENTAL OF ENTREPRENEURSHIP
BUSINESS PLAN REPORT

CHURRORAMA
PREPARED BY :
NO. NAME STUDENT.NO GROUP
1. AMMAR WAFIY BIN NASIR 2022562909 PHM1152A2
2. MUHAMMAD IMAN ILHAM BIN AHMAD 2021268816 PHM1152A2
SHUFI
3. AHMAD ZAFFRAN HAKIMI BIN ABDUL 2022732375 PHM1152A2
RAZAK
4. MUHAMMAD ADNIL MUQRISH BIN 2022979289 PHM1152A2
RASHID
5. AMMAR RIDHWAN BIN MOHAMED KHIR 2021642404 PHM1103A1

PREPARED FOR :
LECTURER’S : MADAM JANNATUL AKMAR BINTI AHMAD
NAME AWALUDDIN
SEMESTER : OCTOBER 2022 – FEBRUARY 2023
SUBMISSION DATE : 27TH JANUARY 2023

1
 TABLE OF CONTENTS
EXECUTIVE SUMMARY 4

1.0 INTRODUCTION: 5
Business Background
Business Location

2.0 PARTNERSHIP BACKGROUND: 6 – 10

General Manager
Marketing Manager
Operation Manager
Administrative Manager
Financial Manager
3.0 ADMINISTRATION PLAN: 11 – 23
Vision and Mission and Objectives
Organization Chart
Administration Personnel Schedule
Office Equipment and Supplies
Office Furniture and Fitting
Administrative Budget
4.0 MARKETING PLAN 24 – 33
Marketing Objectives
Product Description
Target Market
Market Size and Sales Forecast
Competitors Analysis and Market Share
Remuneration Schedule
Marketing Strategy
Marketing Budget

2
5.0 OPERATIONAL PLAN 34 – 49
Operation Objectives
Process Planning
Operation Layout
Capacity Planning
Material Planning
Machines and Equipment Planning
Location
6.0 FINANCIAL PLAN 50 – 61
Project Implementation Cost & Sources of Finance
Loan Amortization Repayment Schedule
Hire-Purchase Repayment Schedule
Pro-Forma Cash Flow Statement
Pro-Forma Income Statement
Pro-Forma Balance Sheet
Pro-Forma Financial Analysis
7.0 Conclusion 62
Appendices 63 – 79

3
EXECUTIVE SUMMARY

Our Churrorama business is a unique and delicious concept that offers customers a traditional
Spanish treat. The General Manager for this business is Ammar Wafiy Bin Basir and there are
4 other managers working in it. Our churros are made fresh daily, using high-quality
ingredients and authentic recipes. We offer a variety of flavors and toppings to choose from,
including classic cinnamon sugar, chocolate, and caramel. Additionally, we offer a selection
of dipping sauces to complement the churros. The sell it at the price of RM25.00 including
drinks. The business will operate as a shop lot in Sunway Carnival Mall, here in Pulau Pinang,
but we are looking to expand into a brick-and-mortar storefront in the near future. Our targeted
customers is a people from Bukit Mertajam. The population is over 200,000, we also aim to
sell it to youngster since they love sweetness. We started to register our business on 2/3/2023
and starts its operation on 1/5/2003 when we are fully ready. We plan to continue expanding
our offerings to include more flavors, toppings, and dipping sauces. Churrorama is expected
to reach over RM169,500 on the first year. The cost for one serving is RM 5.96. The total
rumuneration for the Adminstration Budget in the company is RM43,015.52 and they will be
tasked with their own specific responsibilities. the Operational Budget is RM42,328.00.
Overall, the churros business is a unique and tasty venture with a strong potential for growth.
We are dedicated to provide high-quality products and excellent customer service to ensure
customer satisfaction. This makes it a highly potential business that will be successful in the
future.

4
1.0 INTRODUCTION

BUSINESS BACKGROUND

Business Name Churrorama

3068, Jalan Todak, Pusat Bandar Seberang

Business Address Jaya, 13700 Seberang Jaya. Pulau Pinang

Business Location Bukit Mertajam, Pulau Pinang

Business Main Activity Making And Selling Churros

Legal Form Partnership

Nature Of Business Food And Beverage

Social Media @Churroramamy

Phone Number 04 - 4362875

Business Hours 11 Am – 9 Pm

Business Registration Date 2/3/2023

Business Operation Date 1/5/2023

To Ensure That Every Local Can Taste The

Reasons For Starting the Business Traditional Spanish Treats With An
Affordable Price

PURPOSE OF PREPARING BUSINESS PLAN

➢ To direct the growth and development of the company: A business plan acts as a road
map for the establishment and expansion of a company. A business may make sure it
stays on track and makes the necessary modifications to meet its goals by regularly
evaluating and revising the business plan.
➢ To obtain funding: When looking for funding from lenders or investors, a business plan is
frequently needed. Investors and lenders can use this information to assess the viability
of a business and make funding decisions.

5
2.0 PARTNERSHIP BACKGROUND

Here in Churrorama, there are 5 positions which includes the General Manager, Marketing
Manager, Operation Manager, Administrative Manager and Financial Manager that are filled
by 5 brilliant individuals.

General Manager

1. Name : Ammar Wafi bin Basir

2. Identity card number : 030424020919

3. Email : amwfi@gmail.com

4. Contact number : 01128443764

5. Permanent address : No.67, Taman Bunga Raya, 06000 Jitra,

Kedah Darul Aman

6. Marital status : Single

7. Academic qualification : Diploma in Culinary Arts

8. Course attended : -

9. Working experience : -
Part time Customer Assistant at
Watsons
10. Skills : - Good creative thinking skills
- Able to lead a team
11. Capital contribution : RM 50,000.00

6
 Marketing Manager

1 Name : MUHAMMAD ADNIL MUQRISH BIN

RASHID

2 Identity card number : 030722070711

3 Email : Adnilmuqrish62@gmail.com

4 Contact number : 01164564288

5 Permanent address : 50-2-5 JALAN HASSAN ABBAS, 11050

TELUK BAHANG BALIK PULAU , PULAU
PINANG

6 Marital status : Single

7 Academic qualification : Diploma In Culinary Arts

8 Course attended : -

9 Working experience : -
Businessman
-
Kitchen Helper
-
Waiter
10 Skills : -
Strong communication
-
Knowledge of current marketing
trends and multimedia platforms,
- Strong internet and computer skills.
11 Capital contribution : RM 50,000.00

7
 Operation Manager

1 Name : Ahmad Zaffran Hakimi Bin Abdul Razak

2 Identity card number : 030606101533

3 Email : zaffkimi@gmail.com

4 Contact number : 01169632217

5 Permanent address : Lot 124, Kg.Tali Air, Morib 42700, Banting

Selangor

6 Marital status : Single

7 Academic qualification : Diploma in Culinary Arts

8 Course attended : -

9 Working experience : - Cashier

10 Skills : - Ability to solve problems

- Ability to communicate
11 Capital contribution : RM 50,000.00

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 Administrative Manager

1 Name : Muhammad Iman Ilham Bin Ahmad Shufi

2 Identity card number : 020703020699

3 Email : Imnn.ilhm123@gmail.com

4 Contact number : 01126087678

5 Permanent address : No 111, Jalan Kelisa 4, Taman Kelisa

Fasa 3, 05150 Mering Alor Setar Kedah.

6 Marital status : Single

7 Academic qualification : Diploma in Culinary Arts

8 Course attended : -

9 Working experience : -
Zara Warehouse Department
employee
10 Skills : - Good delegation and time
management skills
- Develop invention
11 Capital contribution : RM 50,000.00

9
 Financial Manager

1 Name : Ammar Ridhwan Bin Mohamed Khir

2 Identity card number : 000110100783

3 Email : ammar199915@gmail.com

4 Contact number : 01115120048

5 Permanent address : 100, JALAN DELIMA, TAMAN PERWIRA

GOMBAK, 53100, KUALA LUMPUR
WILAYAH PERSEKUTUAN.
6 Marital status : Single

7 Academic qualification : Diploma in Hotel Management

8 Course attended : -

9 Working experience : - Kapten Batik boutique employee

10 Skills : - Financial management

- Mathematical proficiency
11 Capital contribution : RM 50,000.00

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3.0 ADMINISTRATION PLAN

Business Mission, Vision, and Objectives

Business Vision

The vision the vision of this business is to provide a pastry snack that is affordable. And yet
adored by people in Bukit Mertajam to satisfy the sweet cravings of the pastry.

Business Mission

To provide our customer the finest possible service and greatest quality of a product to ensure
their pleasure is fulfilled.

Business Objectives

• To make customers comfortable and pleased by food and services

• To become Churrorama sweets remarkable place to work in
• To compete in a competitive market beside the greatest desert.
• Delivering distinct and fascinating flavour of the cuisine.

Business Logo and Description

Churrorama is a food service providing sweet and savory churros. Our churros are 100%
homemade using high quality ingredients with no preservatives or additives and are not
imported. We offer variety of sauce and flavours. There is a wide selection of sweet and savory
churros to choose from that will satisfy all customer’s desires.

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12
LOCATION

The location of Churrorama is extremely advantageous as it is situated near residential areas.

The surrounding area is home to a significant number of workers and the place itself is a
popular shopping destination which is Sunway Carnival Mall.

Figure 1 Sunway Carnival Mall

Location: 3068, Jalan Todak, Pusat Bandar Seberang Jaya, 13700 Seberang Jaya. Pulau
Pinang

Property type: Shop for rent or sale.

Built-up size: 750 sq. ft.

Land area: 750 sq. ft.

13
Based on the Google Maps, I chose this location because it offers ample parking space and
ease of access for customers, which will bring us a lot of advantages. Additionally, being near
many new attractions will attract more potential customers to our place. The traffic conditions
here is very good and less busy compared to the other places.

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ORGANIZATIONAL CHART

An organisational chart is a graphical depiction of a company's internal structure that depicts

each individual's relationships, duties, and responsibilities.

CHURRORAMA
AMMAR WAFIY BIN BASIR
(GENERAL MANAGER)

MUHAMMAD IMAN ILHAM BIN AHMAD SHUFI

(ADMINISTRATION MANAGER)

AHMAD ZAFFRAN HAKIMI BIN ABDUL RAZAK

(MARKETING MANAGER)

MUHAMMAD ADNIL MUQRISH BIN RASHID

(OPERATIONAL MANAGER)

AMMAR RIDHWAN BIN MOHAMED KHIR

(FINANCIAL MANAGER)

The organisation chart is organised by worker function. Mr Ammar Wafiy Bin Basir, the key
concept behind the creation of the quick tent, is the general manager. Mr Muhammad Iman
Ilham Bin Ahmad Shufi is the administrative manager, and he excels at project planning and
management. Mr Ahmad Zaffran Hakimi Bin Abdul Razak is the marketing manager, while Mr
Muhammad Adnil Muqrish Bin Rashid is the operational manager. Last but not least, Mr
Ammar Ridhwan Bin Mohamed Khir is the finance manager.

15
General Manager

Aside from overseeing the day-to-day operations of the company, the General Manager is
responsible for increasing productivity and increasing the profitability of specific departments.
They are in charge of several areas of a business, including hiring staff, setting operational
budgets, and launching price promotions that may result in increased client volume.

Administrative Manager

Administrative Managers are in charge of assisting with schedule coordination as well as

maintaining payroll and personnel records. They create reports for use by persons in other
administrative jobs. They also develop rules and standards to ensure that personnel have
gotten proper training and are confident in their abilities.

Marketing Manager

Conducting market research, becoming familiar with industry trends and customer
preferences, developing marketing strategies and budgets, supervising the production of
marketing materials and content, and completing any and all other tasks relevant and
necessary for increasing a company's sales are all responsibilities of a marketing manager.

Operational Manager

The basis of operations management in its most basic form is controlling a company's
operations with the objective of achieving goals, increasing productivity, and producing profits.
This includes the methods for planning, organising, and supervising operations, production
and manufacturing processes, and service delivery in order to provide the intended output of
a high-quality product or service that meets the consumer's needs.

Financial Manager

The Financial Manager is one of the most crucial decision-makers in a corporation. They use
data analysis to advise senior managers on profit maximisation ideas, which may help
optimise corporate earnings over time by aiding senior managers in making educated
decisions about investments or spending cash in the most profitable way.

16
Administration Personnel Schedule
Table: Schedule of Task and Responsibilities

Position Task and Responsibilities

General Manager • Assist the Board and staff with
the preparation of long-term and
yearly plans, as well as the
review and reporting of progress
on plans, to provide leadership
and vision to the organisation.
• Oversee the creation of an
annual report that summarises
Short and long-term goals are
being met.
• Investigate and write discussion
papers and analytical materials
as well as recommendations as
needed to support the
organization.
• Identifying and accomplishing its
long and short term goals.
• Recruiting and contracting firm
and project personnel Employee
growth and training.
• Policy creation and
documentation Systems for
performance management and
improvement Employment, as
well as regulatory compliance
and reporting.
• Facilitation of company-wide
committees, including planning,
production, staffing, and
managing the hiring and
distribution of music scores and
parts. Including any

17
 compensation for performance
rights.
• Oversee the booking of tours,
which involves everything from
venue contact to the delivery of
audience questionnaires,
programmes, and
merchandising.
Administration Manager • General office duties such as
welcoming guests, filing,
photocopying, faxing, processing
outgoing and incoming mail,
routing and screening all incoming
calls, and disseminating messages
to relevant team members are
performed and supervised.
• Ensure that meeting rooms,
conference rooms, and reception
spaces are ready for use.
• Collect and approve all timecards
and payroll information from
Community Link employees before
transmitting to the payroll provider.
• Assist programme directors in the
preparation and maintenance of
contract requirements.
Marketing Manager • Create price strategies that
balance corporate aims with
customer happiness.
• Identify, create, and evaluate
marketing strategies based on
understanding of the
establishment's goals, market
features, and cost and mark-up
variables.

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 • Examine the financial
components of product
development, including as
budgets, expenditures, R&D
budgets, and return-on-
investment and profit-loss
estimates.
• Working with advertising and
promotion managers, develop,
direct, and coordinate marketing
activities and policies to promote
products and services.
• Launch market research studies
and analyse the results.
Operation Manager • Coordination, management, and
oversight of the organization's many
departments.
• Examine the financial accounts and
statistics. Profitability may be
increased by utilising financial data.
Create and manage operational
budgets. Inventory management
Plan effective tactics for the
company's financial well-being.
• Enhance procedures and policies to
better support organisational goals.
To optimise production, develop
departmental and organisational
policies and procedures. Monitoring
and implementing rules, regulations,
and procedures.
• Plan how you will employ your
human resources. Organize the
hiring and placement of necessary
personnel. Create organisational
frameworks. Delegate

19
 responsibilities and duties. Create
work schedules. Maintain employee
supervision. Performance should be
monitored and evaluated.
• Coordination and supervision of
many departments engaged in
manufacturing, warehousing,
pricing, and distribution of
commodities. Performance should
be monitored and improved. Ensure
product quality. Control the amount
and quality of staff productivity.
Manage the upkeep of equipment
and machinery. Provide technical
assistance as needed.
Financial Manager • Keep a written record of your
accounting policies and practises.
Control outsourced functions.
• Oversee the treasury department's
operations, including the creation
of an organisational structure
capable of fulfilling the
department's aims and objectives.
• Forecast cash flow positions,
borrowing requirements, and
available investment funds make
sure there are enough money to
cover ongoing operating and
capital investment needs.
• Make suitable dividend
recommendations based on
previous dividend patterns and
forecast cash flows.
• Assist management in developing
its overarching strategic direction.
• Engage in continual cost-cutting

20
 assessments in all areas of the
business.

Table: List of Administrative Personnel

Position No. of
Personnel
General Manager 1
Administration 1
Manager
Marketing 1
Manager
Operation 1
Manager
Assistant 1
Operation
Manager
Financial 1
Manager
Total 6

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 RENUMERATION

POSITION No. Monthly EPF SOCSO Total

Salary Contribution Contribution

(RM) (RM) (RM) (RM)

General Manager 1 3350.00 328.50 65.70 3744.20
Administration Manager 1 2320.00 190.80 38.16 2548.96
Marketing Manager 1 2240.00 228.60 45.72 2514.32
Operation Manager 1 2660.00 248.40 49.68 2958.08
Assistant Operation 1 1940.00 165.60 33.12 2138.72
Manager
Financial Manager 1 3230.00 317.70 63.54 3611.24
TOTAL 6 15740.00 1479.60 295.92 17515.52

Office Equipment and Supplies

Type Price/Unit Quantity Total Amount

(RM) (RM)
Equipment
Computer 4500.00 2 9000.00
Printer 900.00 1 900.00
Wireless 250.00 1 250.00
Router(Wi-
Fi)
Air Conditioner 1500.00 1 1500.00
Fax Machine 1000.00 1 1000.00
Total 12,650.00
Supplies
A4 Paper 33.00 10 330.00
Printer Ink 50.00 4 200.00
Box 10.00 10 100.00
Pen 15.00 10 150.00
Business Card 1.00 4000 4000.00
Other Expenditure 550.00
Total 5330.00

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 Office Furniture and Fitting

Type Price/Unit Quantity Total Amount

(RM) (RM)
Office Table 575.00 4 2300.00
Office Chair 125.00 4 500.00
Whiteboard 300.00 2 500.00
Curtain 50.00 4 200.00
Pantry Set 800.00 1 800.00
Total 4300.00

Administration Budget

Items Fixed Monthly Other

Assets Expenses Expenses
(RM) (RM) (RM)
Fixed
AssetsOffice 17,980
Equipment Furniture 4300
and Fitting
Working Capital
Rent 1,200
Utilities 1,010
Social Influncer 460
Salaries. EPF and SOCSO 17,515.52
Pre-Operations
Other Expenditure 550

Total 43,015.52

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4.0 MARKETING PLAN

MARKETING OBJECTIVES
For a business that is just starting out, marketing planning could help it
advance. We may outline the target market for this company endeavour, begin setting
goals for success, and produce a vision and mission that are in line with the marketing
goals. It is crucial to make sure that customers are aware of the new service's
presentation and availability. Additionally, it might be useful in establishing the pricing
range for a newcomer and clearly identifying the target market for this company's
research, either in terms of population or different regions.

Below are the marketing plan objectives:

• To be known around the Penang the as the best churros place to eat.

• To make as sure that Churrorama will be known around the Penang within 5
months.

• To increase sale by 30% after a year of opening.

• To penetrate the market by 50% from our sales.

• To increase the market share by 15% by 2024.

• To increase profit for the next 5years of our operation.

• To increase customers' loyalty toward service using our best service in dealing
with customers and preparing customer orders.

Product Description

Churrorama is a store where locals may buy prepared cuisine and drinks. Our store
sells wonderful churros in a variety of flavours, including chocolate, strawberry, butter,
and many others. Because it saves more time, people now choose to purchase churros
from cafes rather than from coffee shops or pastry shops. However, this will be very
expensive for them monetarily, therefore we choose to open the smallest to cut costs.
In contrast to normal stores where customers can only buy in packages to take home,
online retailers allow customers to buy in packages or select to eat immediately in the
store.

24
 Additionally, because of our strategic location near shopping centres and residential
areas, clients prefer Churrorama above other cafes due to our distinctiveness. Then, a
parking lot is also conveniently located. Additionally, the availability of a wide range of
flavours means that customers do not need to visit numerous shops in order to sample
goods from another bakery or café. Additionally, our store is open from Monday through
Sunday from 10 am to 9 pm, with breaks available from 12 pm to 1 pm and 6 pm to 7
pm. To maintain the quality of the meal, we only use fresh ingredients that are created
daily.

Because the cuisine we offer is appropriate for all social strata, our consumers range
in age. Teenagers and students make up the majority of our clientele since they
frequently choose to hang out in stores in line with current trends. Adults may also use
the shop as a meeting spot or a location to catch up with friends while having afternoon
tea and talking about work-related topics. Children who are eager to sample our
delectable churros are another group of clients not to be overlooked.

Target Market

Segmenting Marketing

Market segmentation is the process of classifying or dividing a market of potential buyers

based on several factors. The segments are made up of consumers who have
characteristics in common, such as shared hobbies, needs, or geography, and who react
to marketing efforts similarly. Its objective is to make sure that businesses can segment
their clientele in order to more successfully market their products and services.

The target market is divided into groups based on similar qualities in this procedure so
that we may concentrate on meeting their demands and then boost sales by luring
customers who share these target markets' traits.

• Demographic segmentations

• Geographic segmentations

25
 Demographic segmentations

Demographic segmentation is the division of a market based on characteristics such

as age, race, religion, gender, family size, ethnicity, income, and education. By dividing
demographics into several markets, a business can more effectively target its clients. All
ages and genders are appropriate for our business and the creation of sales materials.
Everyone may find food and beverages at our shop based on their preferences and
interests. Customers can select their own menu items, decide whether to eat in the
restaurant or purchase take-out packages and pay the predetermined amount.

Geographic segmentation

Geographic segmentation is the separation of a company's market depending on

location. A market may be divided into cities, counties, regions, countries, and
international territories. Markets are classified into three types: urban, suburban, and
rural. Using this segmentation, we may determine the product that the client in a certain
place needs. We have chosen the cafe as the company's site, which is situated at
Churrorama, LG-66, Lower Ground Floor, Sunway Carnival Mall, 3068, Jalan Todak,
Pusat, 13700 Seberang Jaya, Pulau Pinang Penang. Its strategic location in the city's
heart, surrounded by residential neighbourhoods and shopping centres, makes it a great
location to chill together.

MARKET TREND & MARKET SIZE

Market Trend

As the population of the area grew as a result of the students who started advanced they
study there, due to the rise in demand, which is primarily from teens who are students
and workers, the need for coffee, dessert, and pastries as well as places to hang out
expanded. It presents a chance for us to perhaps offer substantial amounts of food each
day. The community's interest in coffee and pastries and the lifestyle that follows current
trends are expected to lead to an increase in the production of pastries of different forms
and flavours. It will consequently lead to favourable customer feedback for our store.

26
Market Size

Population Bukit Mertajam 2022

110059
Male
116045
Female

Population of targeted customers in Bukit Mertajam, Pulau

Pinang (2022) : 226,104

Area Person

Bukit Mertajam 226,104

➢ Population × Average Price = Market Size

➢ 226,104 × 25 = 5,652,600 (Market Size)
➢ Our sales forecast is 3% from market size
➢ 5,652,600 × 3% = 169,578(per year)
➢ From sales forecasting we would be able to generate how many customers per
year.

27
 ➢ Our food and price are about RM25 for a set of drinks and food.

➢ = 6,783 customers per year

➢ 6,783
= 565 customers per month (RM14,125 per month).
12

➢ 565
= 25 customers per day
23

No. Menu Estimates Total Estimated Total

Sales Per Sales/Monthly (RM) Estimated
Sales/Yearly
Person
(Rm)
(RM)

169,578
1. Food and Drink 25 14,125

Competition

Competitors Strength Weakness

Peh Peh Brew well-known, already has There is no specialty for

consumers, and there are clients to buy and it is too
many branches in other expensive for a snack and
locations. pastry.

Roku BM Sell more food overall, They are still new to

including lunch fare like internet business
lasagna and a wider range platforms, which makes
of desserts. them unknowledgeable
and without any existing
clients.

28
MARKET SHARE

The percentage of a customer's total purchases of a good or service that goes to that
company is what is known as a company's market share. It is the area of a firm that
corresponds to the total revenue or sales in a market and serves as a benchmark for
comparing performance to the industry.

Market Size per year = RM 5,652,600

Based on our internet research at Google, in Bukit Mertajam, there are two businesses
which offer similar product with us. The businesses are Roku BM and Peh Peh Brew.
Below show market share before we enter the market. Peh Peh Brew hold major market
share which is 60%, followed by Roku BM with 40%.

Market Share before the entrance of CHURRORAMA

Competitor Percentage of Market Annual Sale, RM

Share, %

Peh Peh Brew 60 3,391,560

Roku BM 40 2,261,040

Total
5,652,600

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Market Share after the entrance of CHURRORAMA

Competitor Percentage of Market Annual Sale, RM

Share, %

Peh Peh Brew 57 3,221,982

Roku BM 40 2,261,040

Churrorama 3 527,175

Total
5,652,600

After a long learning and examining the advantages and disadvantages of its rivals, CHURRORAM is
confident that it can hold a 3% market share. This implies that following the entry of CHURRORAMA,
the current rivals will lose some of their market share.

Sales Forecast

We assuming that our business will rise by 3% in year 2 because of the hype and fall by 7% in year 3. By
doing this, our business can decide to take steps to boost sales, such as introducing new products or
increasing marketing efforts to avoid the worst.

30
 Sales
Forecast

Year 1 Year 2 Year 3

(+3% over (+15% over
year 1) year 2)

Sales RM RM RM

Churro RM169,578 RM174,547 RM200,729.0

s 5

Total RM169,57 RM174,54 RM200,729.0

Sales 8 7 5

Remuneration Schedule

POSITION No. Monthly EPF SOCSO Total

Salary Contribution Contribution

(RM) (RM) (RM) (RM)

General Manager 1 3350.00 328.50 65.70 3744.20
Administration Manager 1 2320.00 190.80 38.16 2548.96
Marketing Manager 1 2240.00 228.60 45.72 2514.32
Operation Manager 1 2660.00 248.40 49.68 2958.08
Assistant Operation 1 1940.00 165.60 33.12 2138.72
Manager
Financial Manager 1 3230.00 317.70 63.54 3611.24
TOTAL 6 15740.00 1479.60 295.92 17515.52

31
Market Stratergy

Distribution Strategy

- Everyone has a designated workplace, especially for personnel who handle receiver orders and packaging. Since
we prepared the customer's order immediately, we needed the assistance of every staff member when preparing
the order. In order to ensure that no errors are made when the orders are packaged and the customer is satisfied,
we have also trained all of our staff the recipes for our churros.

Price strategy

On the entry-level and ceiling prices of our competitors, we base our price. Customers typically seek out the least
expensive service, but we must also assess our capacity for preparation. In order to make sure that we are
competitive, we decided to compare our rates against those of other churros shops on the market.

Promotion Strategy

One of our marketing strategies involves sending a tester to a social media personality so they may tell their
audience the truth about our products. In our industry, this tactic is crucial because customers are always looking
to check out new products that are available on social media. In addition, we have our own websites, Twitter
accounts, Instagram accounts, Tiktok accounts, and a business account number via which customers can place
orders.

Technology today has a huge impact on businesses, and it is also the most practical way for customers to do so
because people use social media to maximise their waking hours.

Product strategy

People will quickly realise that we specialise in manufacturing churros because we use everyone's preferred taste
and offer it at a reasonable price. We make fresh ingredients every day to guarantee that clients who wish to
purchase them are entirely satisfied with our service, and customers may also choose from a selection of flavours
that are rarely seen in other stores.

32
Marketing Budget

Particulars Fixed Monthly Other TOTAL

Assets Expenses Expenses (RM)
Expenses (RM) (RM)
(RM)

Fixed Assets

Office furniture 4,300 4,300

and fittings

Shop equipment 17,980 17,980

Working Capital

Shop supplies 400 400

Stationeries 360 360

Petrol and vehicles 250 250

maintenance

Social influencer 460 460

Other Expenditure

Banner 390 390

Poster 160 160

TOTAL 24,300

33
5.0 OPERATIONAL PLAN

PROCESS PLANNING

Figure 2 Process Planning

34
OPERATION LAYOUT

Figure 3 Operation Layout

35
PRODUCTION CAPACITY PLANNING

INFORMATION CALCULATION

Total of working days 23 Days

Numbers of Customers in a Month 565 Customers

Daily Customers 565 / 23 days = 25 Customers

No. of Population in Bukit Mertajam 226,104

Sales Forecast Monthly RM 25.00 x 565 = RM 14,125

Sales Forecast Yearly RM 14,125 x 12 Months = RM169,500

(226,104 x RM25) x 3%
Market Size
= RM 169,578 per year

36
MATERIAL REQUIREMENT PLANNING

Disposable Packaging Materials

TOTAL
SAFETY TOTAL
MATERIAL QUANTITY MATERIAL PRICE/UNIT
STOCK PRICE
REQUIREMENT

Drinking Cup 1000 200 1200 RM 0.37 RM 444.00

Plastic
1000 200 1200 RM 0.13 RM 156.00
Cutlery

Straw 1000 200 1200 RM 0.03 RM 36.00

Tissue 1000 cartons 500 1500 RM 2.00 RM 3,000.00

Paper Bag
1000 500 1500 RM 0.50 RM 750.00
(Packaging)

Plastic
Container 2000 500 2500 RM 0.20 RM 500.00
(Sauce)

TOTAL RM 4,886.00

No. of Customer Per Unit

1 RM 3.23

37
Raw Materials

TOTAL
INGREDIENTS QUANTITY MULTIPLY PRICE/UNIT
PRICE

Butter 500g x 100/pcs X RM 5.50 RM 550.00

All Purpose Flour 1kg x 60/pcs X RM 2 RM 120.00

Sugar 1kg x 60/pcs X RM 2.80 RM 84.00

Salt 1kg x 60/pcs X RM 2 RM120.00

Egg 40 trays X RM 13/tray RM 520.00

Vanilla Extract 1kg x 20/pcs X RM 50 RM 1000.00

Water - - -

TOTAL RM2,394.00

The ingredients are for 1-month productions.

38
For Each Serving We Serve 300g of Churros (1 Serving)

INGREDIENTS PRICE PER SERVING / 300G

300g All Purpose Flour RM 0.60

150g Butter RM 0.42

4g Salt RM 0.01

75g Sugar RM 0.20

1 Teaspoon of Vanilla RM 0.20

3 Eggs RM 1.30

280 Millilitre Water -

TOTAL RM 2.73

The ingredients are for 1 serving.

39
MACHINE & EQUIPMENT PLANNING

ITEMS QUANTITY PRICE PER UNIT TOTAL COST

Churros Maker 1 RM 2,150.00 RM 2,150.00

Fryer 2 RM 150.00 RM 300.00

Chiller 1 RM 2,000.00 RM 2,000.00

Vacuum 1 RM 200.00 RM 200.00

Stove 1 RM 6,900.00 RM 6,900.00

Drink Dispenser 1 RM 1,500.00 RM 1,500.00

Stainless Steel Cabinet 2 RM 799.00 RM 1,598.00

Cashier Machine 1 RM 2,200.00 RM 2,200.00

Measuring Cups 5 RM 5.00 RM 25.00

Spatula 5 RM 5.00 RM 25.00

Whisk 5 RM 5.00 RM 25.00

Scissors 2 RM 5.00 RM 10.00

Knife 5 RM 25.00 RM 125.00

Tray 10 RM 40.00 RM 400.00

Parchment Paper 10 (10pcs/set) RM 3.00 RM 30.00

Menu’s Board 2 RM 70.00 RM 140.00

Flour Sifter 2 RM 25.00 RM 50.00

Kitchen Towel 10 RM 2.00 RM 20.00

Stainless Steel Pot 5 RM 200.00 RM 1,000.00

Sauce Bottle 5 RM 15.00 RM 75.00

TOTAL RM 20,548.00.

40
SUPPLIER OF MACHINES AND EQUIPMENT

ITEMS SUPPLIER

All Items Shopee and Horse Equipment Sdn. Bhd.

LOCATION

The location of Churrorama is extremely advantageous as it is situated near residential areas. The surrounding
area is home to a significant number of workers and the place itself is a popular shopping destination which is
Sunway Carnival Mall.

Figure 4 Sunway Carnival Mall

Location: 3068, Jalan Todak, Pusat Bandar Seberang Jaya, 13700 Seberang Jaya. Pulau Pinang

Property type: Shop for rent or sale.

Built-up size: 750 sq. ft.

Land area: 750 sq. ft.

41
Based on the Google Maps, I chose this location because it offers ample parking space and ease of access for
customers, which will bring us a lot of advantages. Additionally, being near many new attractions will attract more
potential customers to our place. The traffic conditions here is very good and less busy compared to the other
places.

42
BUSINESS OPERATIONAL HOURS

OPERATION
DAY BUSINESS HOURS
HOURS

Sunday 11 AM – 9 PM 10 AM – 10 PM

Monday 11 AM – 9 PM 10 AM – 10 PM

Business
Tuesday 11 AM – 9 PM 10 AM – 10 PM Operates as
Usual

Wednesday 11 AM – 9 PM 10 AM – 10 PM

Thursday 11 AM – 9 PM 10 AM – 10 PM

Friday OFF OFF

Saturday OFF OFF

43
OPERATION PERSONAL SCEHEDULE

PERSON IN
POSITION TASK AND RESPONSIBILITIES
CHARGE

➢ Answer Customers Questions

Server Adam
➢ Serve Foods to the Clients

➢ Receive Payments
Cashier Nini & Sarah
➢ Keep on Track of Business Cash Flow

➢ Make Churros
Azman & Afiq &
Food Handler ➢ Prepare the Sauce
Tisha
➢ Clean the Kitchen Afterwards

➢ Help in the Kitchen

Kitchen Helper Amin & Misha ➢ Organise Incoming Stocks

PERSON IN CHARGE DURING

TASK
CLOSING

➢ Clean the Place after the operational

All hours.
➢ Make sure everything is organized.

44
REMUNERATION SCHEDULE

POSITION NO MONTHLY SALARY EPF SOCSO TOTAL

13% 2.5%

Server 1 RM 1,500.00 RM 195.00 RM 37.50 RM 1,732.50

Cashier 2 RM 1,500.00 RM 195.00 RM 37.50 RM 1,732.50

Food Handler 3 RM 1,500.00 RM 195.00 RM 37.50 RM 1,732.50

Kitchen Helper 2 RM 1,500.00 RM 195.00 RM 37.50 RM 1,732.50

TOTAL RM 6,930.00

NO. OF OPERATION WORKERS TOTAL

8 RM13,860

45
PERMIT / LICENCES

It is essential to obtain the necessary licenses and permits before starting a business in Malaysia. The specific
licenses required will depend on the location and type of business, and they must be obtained from Pihak Berkuasa
Melesen (PBM) before the business can legally operate. Failure to acquire these licenses can lead to legal issues.

Also, we required various licences before operates, such as general licenses, licences for signboard, typhoid
injection for the workers, and permits for immigrant’s workers.

A) GENERAL LICENCES

General licenses are the necessary licenses you will need when you decide to establish a business in Malaysia.

General Licenses include:

• Company registration
• Company and employee’s income tax registration
• Employees provident fund (EFP)
• Social security organisation (PERKESO)
• Human resources development fund (HRDF)
• Business premise licenses and signboard licenses

B) BUSINESS PREMISE LICENSES AND SIGNBOARD LICENSES APPLICATION

The state authorities are the place to apply for business premises licences and signboard licences.

The following documents must be submitted with an application for a business premise licence or signboard
licence, though specific requirements may vary depending on the local state authority:

List of Document Required for Company:

• Certificate of incorporation (section 17)

• Return of particulars or directors, managers, and secretaries (section 58)
• Photos of your business premise (front and interior)
• Sample of signboard indicating design and colour
• Photos showing location of signboard

46
List of Document Required for Sole Proprietorship / Partnership:

• Certificate of registration of business (form D)

• E-SSM business profile
• Photos of your business premise (front and interior)
• Sample of signboard indicating design and colour
• Photos showing location of signboard

C) TYPHOID INJECTION FOR THE WORKERS

According to the Food Act 1983 and the Food Regulations 1985, all people who handle food in Malaysia, including
those who work in the food service business, are required to have a current typhoid vaccination. This is done in
order to protect the public's food supply and stop the typhoid virus from spreading.

Those who handle food should always have a current typhoid vaccination certificate on available to show their
employer and the local health authorities when necessary. Additionally, employers are in charge of making sure
that workers have current typhoid vaccination certificates.

D) PERMITS FOR IMMIGRANT WORKERS

To work lawfully in Malaysia, foreign employees must have a work permit. The Immigration Department of
Malaysia is in charge of the procedure for getting a work permit for international employees.

It is significant to remember that foreign workers in Malaysia must also have a current visa that enables them to
enter and remain in the country, and they must renew it in accordance with the duration of their work permit.
Additionally, employers are in charge of making sure that their foreign workers have proper work permits and
visas, as well as adhering to all applicable rules and laws surrounding the employment of foreign workers

Depending on the type of work the foreign worker will be doing and how long they will be working in Malaysia,
different regulations and procedures will need to be followed to receive a work permit.

Generally, The Process Involves the Following Steps:

1. The employer of the foreign worker requests a work permit on their behalf.

2. The employer provides all required paperwork, including the foreign employee's passport, transcripts, and
police clearance certificate.

47
3. The Immigration Department verifies the documents' legitimacy and runs background checks.

4. A valid medical certificate is obtained once the foreign worker has had a medical examination.

5. The foreign worker receives a legitimate work permit from the immigration department, which valid for a specific
period.

6. Before it expires, the foreign worker must renew their work permit, and every year their employer must renew
the permit's validity.

RESPONSIBLE AGENCY TO APPROVE THE LICENCES:

• Business Registration Certificate and Company Registration: These are issued by the Companies
Commission of Malaysia (SSM).
• Trade License: These are issued by the local municipal council or district office.
• Work Permit: These are issued by the Immigration Department of Malaysia.
• Professional License: These are issued by the relevant professional bodies such as the Medical Council
of Malaysia, the Engineering Council of Malaysia.
• Special Permit: These are issued by the relevant government agencies such as the Ministry of International
Trade and Industry (MITI), the Ministry of Health (MOH).

BASIC REQUIREMENTS FOR THE BUSINESS LICENSE APPLICATION

• Copy of business registration certificate/confirmation of establishment (section 17).

• Copy of section 58.
• Copy of section 78.
• Copies of proposed spatial grants, titles, or lease agreements.
• Copy of Construction Certificate of Occupation.
• Location map or plan.
• Use of floor installations or fountains.
• Ad pitch (advertising must meet the requirements for language requirements).
• Photo of applicant’s passport.
• Copy of applicant NNKN form.

48
OPERATION BUDGET

INFORMATION FIXED ASSET MONTHLY EXPENSES OTHER EXPENSES

Fixed Asset

Machine Equipment RM 20,548.00

Monthly Expenses

Disposable RM 4,886.00
Packaging Materials

Raw Materials RM2,394.00

Salaries RM13,860.00

Other Expenses

Typhoid RM 640.00
(8 workers)

TOTAL RM 20,548.00 RM 21,140.00 RM640.00

49
 6.0 FINANCIAL PLANNING
FINANCIAL PLANNING
© Ismail Ab.Wahab, MEDEC, UiTM, 2006

NAME OF BUSINESS/COMPANY CHURRORAMA ENTERPRISE

1. Projected administrative, marketing and operations expenditure :

ADMINISTRATIVE EXPENDITURE MARKETING EXPENDITURE OPERATIONS EXPENDITURE

Fixed Assets RM
Fixed Assets RM Fixed Assets RM
Land & Building
Office Equipment 17,980 Office furniture and fittings 4,300 Machine Equipment 20,548
Furniture & Fitting 4,300 Shop equipment 17,980

Working Capital Working Capital Working Capital

Rent 1,200 Shop supplies 400 Raw Materials 2,394
Utilities 1,010 Stationaries 360 Packaging 4,886
Remuneration 17,516 Petrol and vehicles maintenance 250 Salaries, EPF & SOCSO 13,860
Social Influencer 460 Social Influencer 460

Other Expenditure Other Expenditure Other Expenditure

Other Expenditure Banner & Poster 550 Thyphoid 640
Pre-Operations Pre-Operations Pre-Operations
Deposit (rent, utilities, etc.) Deposit (rent, utilities, etc.) Deposit (rent, utilities, etc.)
Business Registration & Licences Business Registration & Licences Business Registration & Licences
Insurance & Road Tax for Motor Vehicle Insurance & Road Tax for Motor Vehicle Insurance & Road Tax for Motor Vehicle
Other Expenditure 550 Other Expenditure Other Expenditure
TOTAL 43,016 TOTAL 24,300 TOTAL 42,328

50
2. Projected sales and purchases: SALES PROJECTION PURCHASE PROJECTION
Year 1 Month 1 Month 1 2,394
Month 2 - Month 2 2,394
Month 3 - Month 3 2,394
Month 4 - Month 4 2,394
Month 5 - Month 5 2,394
Month 6 - Month 6 2,394
Month 7 - Month 7 2,394
Month 8 - Month 8 2,394
Month 9 - Month 9 2,394
Month 10 - Month 10 2,394
Month 11 - Month 11 2,394
Month 12 - Month 12 2,394
Total Year 1 - Total Year 1 28,728
Year 2 ToTal Year 2 ToTal Year 2
Year 3 Total Year 3 Total Year 3

3. Collection for sales & payment for purchases: CASH COLLECTIONS FOR SALES CASH PAYMENTS FOR PURCHASES
In the month of sale 100% In the month of purchase 100%
1 month after sale 0% 1 month after purchase 0%
2 months after sale 0% 2 months after purchase 0%
Total 100% Total 100%

4. Economic life of fixed assets & FIXED ASSETS Econ. Life (yrs) FIXED ASSETS Econ. Life (yrs)
depreciation method: Office Equipment 5 0 5
Furniture & Fitting 5 0 5
- 5 Machine Equipment 5
- 5 0 5
Office furniture and fittings 5 0 5
Shop equipment 5 0 5

DEPRECIATION METHOD (1=straight line, 2=declining balance) 1

5. Increase in working capital (if any): INCREASE IN WORKING CAPITAL (%)
Year 2
Year 3

6. Ending stock for raw materials ENDING STOCK OF RAW MATERIALS RM ENDING STOCK OF FINISHED GOODS RM
and finished goods: End of Year 1 End of Year 1
End of Year 2 End of Year 2
End of Year 3 End of Year 3

7. Rate of taxation (for private limited company): TAX RATE

Year 1 28%
Year 2 28%
Year 3 28%

8. Business background: BUSINESS LEGAL ENTITY 1 NATURE OF BUSINESS 1

1 = Private Limited Cpmpany (Sdn. Bhd.) 1 = Manufacturing
2 = Partnership 2 = Trading
3 = Sole Proprietorship 3 = Service

9. Sources of finance: LOAN (if required)

Interest rate 5%
Loan duration 5
Interest payment method* 2
* Method: 1 = flat rate 2 = annual rest kadar tetap

HIRE-PURCHASE (if required)

Interest rate 5%
Hire-purchase duration 5

51
PROJECT IMPLEMENTATION COST & SOURCES OF FINANCE

CHURRORAMA ENTERPRISE
PROJECT IMPLEMENTATION COST & SOURCES OF FINANCE
Project Implementation Cost Sources of Finance
Requirements Cost Loan Hire-Purchase Own Contribution
Fixed Assets Cash Existing F. Assets
Land & Building 0 0
Office Equipment 17,980 0 17,980
Furniture & Fitting 4,300 0 4,300
0 0
0 0 0
Office furniture and fittings 4,300 0 4,300
Shop equipment 17,980 0 17,980
0 0 0
0 0 0
Machine Equipment 20,548 0 20,548
0 0 0
0 0 0
0 0 0
Working Capital 1 months
Administrative 20,186 0 20,186
Marketing 1,470 0 1,470
Operations 21,140 0 21,140
Pre-Operations & Other Expenditure 1,740 0 1,740
Contingencies 10% 10,964 0 10,964

TOTAL 120,608 0 0 120,608 0

52
ADMINISTRATIVE BUDGET
ADMINISTRATIVE BUDGET
Particulars F.Assets Monthly Exp. Others Total Particulars
Fixed Assets
Land & Building - - Fixed Assets
Office Equipment 17,980 17,980 Office furniture and fittings
Furniture & Fitting 4,300 4,300 Shop equipment
0 - - 0
0 - - 0
Working Capital Working Capital
Rent 1,200 1,200 Shop supplies
Utilities 1,010 1,010 Stationaries
Remuneration 17,516 17,516 Petrol and vehicles maintenance
Social Influencer 460 460 Social Influencer
0 - -
0 - -
0 - -
Pre-Operations & Other Expenditure Pre-Operations & Other Expenditu
Other Expenditure - Other Expenditure
Deposit (rent, utilities, etc.) - - Deposit (rent, utilities, etc.)
Business Registration & Licences - - Business Registration & Licence
Insurance & Road Tax for Motor Vehicle - - Insurance & Road Tax for Motor
Other Pre-Operations Expenditure 550 550 Other Pre-Operations Expenditur
Total 22,280 20,186 550 43,016 Total

MARKETING BUDGET

MARKETING BUDGET
Particulars F.Assets Monthly Exp. Others Total Particulars

Fixed Assets Fixed Assets

Office furniture and fittings 4,300 4,300 Machine Equipment
Shop equipment 17,980 17,980 0
0 - - 0
0 - - 0
Working Capital Working Capital
Shop supplies 400 400 Raw Materials
Stationaries 360 360 Packaging
Petrol and vehicles maintenance 250 250 Salaries, EPF & SOCSO
Social Influencer 460 460
0 - -
0 - -
0 - -
Pre-Operations & Other Expenditure Pre-Operations & Other Expenditu
Other Expenditure 550 Other Expenditure
Deposit (rent, utilities, etc.) - - Deposit (rent, utilities, etc.)
Business Registration & Licences - - Business Registration & Licences
Insurance & Road Tax for Motor Vehicle - - Insurance & Road Tax for Motor
Other Pre-Operations Expenditure - - Other Pre-Operations Expenditur
Total 22,280 1,470 550 23,750 Total

53
OPERATIONS BUDGET

OPERATIONS BUDGET
Particulars F.Assets Monthly Exp. Others Total

Fixed Assets
Machine Equipment 20,548 20,548
0 - -
0 - -
0 - -
Working Capital
Raw Materials 2,394 2,394
Packaging 4,886 4,886
Salaries, EPF & SOCSO 13,860 13,860
0 - -
0 - -
0 - -
0 - -
Pre-Operations & Other Expenditure
Other Expenditure 640
Deposit (rent, utilities, etc.) - -
Business Registration & Licences - -
Insurance & Road Tax for Motor Vehicle - -
Other Pre-Operations Expenditure - -
Total 20,548 21,140 640 41,688

54
55
 CHURRORAMA ENTERPRISE
LOAN & HIRE-PURCHASE AMMORTISATION SCHEDULES
LOAN REPAYMENT SCHEDULE HIRE-PURCHASE REPAYMENT SCHEDULE
Amount 0 Amount 0
Interest Rate 5% Interest Rate 5%
Duration (yrs) 5 Duration (yrs) 5
Method Baki Tahunan
Year Principal Interest Total Payment Principal Balance Year Principal Interest Total Payment Principal Balance
0 - - 0 0 - - -
1 0 0 0 0 1 - - - -
2 0 0 0 0 2 - - - -
3 0 0 0 0 3 - - - -
4 0 0 0 0 4 - - - -
5 0 0 0 - 5 - - - -
6 0 0 - - 6 - - - -
7 0 0 - - 7 - - - -
8 0 0 - - 8 - - - -
9 0 0 - - 9 - - - -
10 0 0 - 0 10 - - - -

56
 CHURRORAMA ENTERPRISE
CASH FLOW PRO FORMA STATEMENT
MONTH Pre-Operations 1 2 3 4 5 6 7 8 9 10 11 12 TOTAL YR 1 YEAR 2 YEAR 3
CASH INFLOW
Capital (Cash) 120,608 0 0 0 0 0 0 0 0 0 0 0 120,608 129,392 0
Loan 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash Sales 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Collection of Accounts Receivable 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL CASH INFLOW 120,608 0 0 0 0 0 0 0 0 0 0 0 0 120,608 129,392 0
CASH OUTFLOW
Administrative Expenditure
Rent 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,400 14,400 14,400
Utilities 1,010 1,010 1,010 1,010 1,010 1,010 1,010 1,010 1,010 1,010 1,010 1,010 12,120 12,120 12,120
Remuneration 17,516 17,516 17,516 17,516 17,516 17,516 17,516 17,516 17,516 17,516 17,516 17,516 210,186 210,186 210,186
Social Influencer 460 460 460 460 460 460 460 460 460 460 460 460 5,520 5,520 5,520
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Marketing Expenditure
Shop supplies 400 400 400 400 400 400 400 400 400 400 400 400 4,800 4,800 4,800
Stationaries 360 360 360 360 360 360 360 360 360 360 360 360 4,320 4,320 4,320
Petrol and vehicles maintenance 250 250 250 250 250 250 250 250 250 250 250 250 3,000 3,000 3,000
Social Influencer 460 460 460 460 460 460 460 460 460 460 460 460 5,520 5,520 5,520

57
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Operations Expenditure
Cash Purchase 2,394 2,394 2,394 2,394 2,394 2,394 2,394 2,394 2,394 2,394 2,394 2,394 28,728 0 0
Payment of Account Payable 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Carriage Inward & Duty 4,886 4,886 4,886 4,886 4,886 4,886 4,886 4,886 4,886 4,886 4,886 4,886 58,632 58,632 58,632
CASH FLOW PRO – FORMA STATEMENT

Salaries, EPF & SOCSO 13,860 13,860 13,860 13,860 13,860 13,860 13,860 13,860 13,860 13,860 13,860 13,860 166,320 166,320 166,320
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Other Expenditure 1,190 1,190 1,190 1,190
Pre-Operations
Deposit (rent, utilities, etc.) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Business Registration & Licences 0 0 0 0 0 0 0 0 0 0 0 0 0
Insurance & Road Tax for Motor Vehicle 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Other Pre-Operations Expenditure 550 0 0 0 0 0 0 0 0 0 0 0 550
Fixed Assets
Purchase of Fixed Assets - Land & Building 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Purchase of Fixed Assets - Others 65,108 0 0 0 0 0 0 0 0 0 0 0 65,108 0 0
Hire-Purchase Down Payment 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Hire-Purchase Repayment:
Principal 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Interest 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Loan Repayment:
Principal 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Interest 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Tax Payable 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL CASH OUTFLOW 65,658 43,986 42,796 42,796 42,796 42,796 42,796 42,796 42,796 42,796 42,796 42,796 42,796 580,394 486,008 486,008
CASH SURPLUS (DEFICIT) 54,950 -43,986 -42,796 -42,796 -42,796 -42,796 -42,796 -42,796 -42,796 -42,796 -42,796 -42,796 -42,796 -459,786 -356,616 -486,008
BEGINNING CASH BALANCE 54,950 10,964 -31,831 -74,627 -117,422 -160,218 -203,013 -245,809 -288,604 -331,400 -374,195 -416,991 0 -459,786 -816,403
ENDING CASH BALANCE 54,950 10,964 -31,831 -74,627 -117,422 -160,218 -203,013 -245,809 -288,604 -331,400 -374,195 -416,991 -459,786 -459,786 -816,403 -1,302,411
PRODUCTION COST PRO - FORMA STATEMENT
CHURRORAMA ENTERPRISE
PRODUCTION COST PRO-FORMA STATEMENT
Year 1 Year 2 Year 3

Raw Materials
Opening Stock 0 0 0
Current Year Purchases 28,728 0 0
Ending Stock 0 0 0
Raw Materials Used 28,728 0 0
Carriage Inward 58,632 58,632 58,632
87,360 58,632 58,632
Salaries, EPF & SOCSO 166,320 166,320 166,320
Factory Overhead
Depreciation of Fixed assets (Operations) 4,110 4,110 4,110
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
Total Factory Overhead 4,110 4,110 4,110
Production Cost 257,790 229,062 229,062

58
PRO - FORMA INCOME STATEMENT

CHURRORAMA ENTERPRISE
PRO-FORMA INCOME STATEMENT

Year 1 Year 2 Year 3

Sales 0 0 0
Less: Cost of Sales
Opening Stock of Finished Goods 0 0 0
Production Cost 257,790 229,062 229,062
less: Ending Stock of Finished Goods 0 0 0
0 0 0
257,790 229,062 229,062
Gross Profit -257,790 -229,062 -229,062

Less: Enpenditure
Administrative Expenditure 242,226 242,226 242,226
Marketing Expenditure 17,640 17,640 17,640
Other Expenditure 1,190 1,190 1,190
Business Registration & Licences 0
Insurance & Road Tax for Motor Vehicle 0 0 0
Other Pre-Operations Expenditure 550 0 0
Interest on Hire-Purchase 0 0 0
Interest on Loan 0 0 0
Depreciation of Fixed Assets 8,912 8,912 8,912

Total Expenditure 270,518 269,968 269,968

Net Profit Before Tax -528,308 -499,030 -499,030
Tax 0 0 0
Net Profit After Tax -528,308 -499,030 -499,030
Accumulated Net Profit -528,308 -1,027,338 -1,526,368

59
PRO – FORMA BALANCE SHEET

CHURRORAMA ENTERPRISE
PRO-FORMA BALANCE SHEET
Year 1 Year 2 Year 3
ASSETS

Fixed Assets (Book Value)

Land & Building 0 0 0
Office Equipment 14,384 10,788 7,192
Furniture & Fitting 3,440 2,580 1,720
0 0 0 0
0 0 0 0
Office furniture and fittings 3,440 2,580 1,720
Shop equipment 14,384 10,788 7,192
0 0 0 0
0 0 0 0
Machine Equipment 16,438 12,329 8,219
0 0 0 0
0 0 0 0
0 0 0 0
52,086 39,065 26,043
Current Assets
Stock of Raw Materials 0 0 0
Stock of Finished Goods 0 0 0
Accounts Receivable 0 0 0
Cash Balance -459,786 -816,403 -1,302,411
-459,786 -816,403 -1,302,411
Other Assets
Deposit 0 0 0

TOTAL ASSETS -407,700 -777,338 -1,276,368

Owners' Equity
Capital 120,608 250,000 120,608
Accumulated Profit -528,308 -1,027,338 -1,526,368
-407,700 -777,338 -1,405,760
Long Term Liabilities
Loan Balance 0 0 0
Hire-Purchase Balance 0 0 0
0 0 0
Current Liabilities
Accounts Payable 0 0 0

TOTAL EQUITY & LIABILITIES -407,700 -777,338 -1,405,760

60
FINANCIAL PERFORMANCES

CHURRORAMA ENTERPRISE
FINANCIAL PERFORMANCE
Year 1 Year 2 Year 3
PROFITABILITY
Sales 0 0 0
Gross Profit -257,790 -229,062 -229,062
Profit Before Tax -528,308 -499,030 -499,030
Profit After Tax -528,308 -499,030 -499,030
Accumulated Profit -528,308 -1,027,338 -1,526,368
LIQUIDITY
Total Cash Inflow 120,608 129,392 0
Total Cash Outflow 580,394 486,008 486,008
Surplus (Deficit) -459,786 -356,616 -486,008
Accumulated Cash -459,786 -816,403 -1,302,411
SAFETY
Owners' Equity -407,700 -777,338 -1,405,760
Fixed Assets 52,086 39,065 26,043
Current Assets -459,786 -816,403 -1,302,411
Long Term Liabilities 0 0 0
Current Liabilities 0 0 0
FINANCIAL RATIOS
Profitability
Return on Sales #DIV/0! #DIV/0! #DIV/0!
Return on Equity 130% 64% 35%
Return on Investment 130% 64% 39%
Liquidity
Current Ratio #DIV/0! #DIV/0! #DIV/0!
Quick Ratio (Acid Test) #DIV/0! #DIV/0! #DIV/0!
Safety
Debt to Equity Ratio 0.0 0.0 0.0

BREAK-EVEN ANALYSIS
Break-Even Point (Sales) #DIV/0! #DIV/0! #DIV/0!
Break-Even Point (%) #DIV/0! #DIV/0! #DIV/0!

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7.0 CONCLUSION
In conclusion, starting a churros business is a viable option as the food is both delicious and trendy. With a solid
administration, marketing, operation, and financial plan in place, we anticipate success for the business in the
future. Our goal is to improve the business and reduce debt and we believe Churrorama will generate a lot of profit
to support the expenses. It is an honour to bring a joy to our customers through the delicious taste of churros. Our
main concern is to fulfilled customer satisfaction.

In addition, Churrorama will strive to use high-quality ingredients and provide excellent customer service to ensure
that every customer has a positive experience, this will make Churrorama well-known due to higher request from
the locals. We will also look into potential expansion opportunities, such as catering or opening additional locations,
to further increase the success of the business. We believe that this business has the potential to become a
beloved staple in the community and we are dedicated to making that happen.

Finally, starting a churros business is a promising and exciting venture that we are confident will be a success.
We are grateful for the opportunity provided by ENT300 to start this business and learn valuable skills for future
success. We will work to get the necessary approvals as soon as possible to bring this business to fruition

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APPENDICES

PARTNERSHIP AGREEMENT

CHURRORAMA

Diploma in Culinary Art

University Teknologi Mara (UiTM)
Kampus Permatang Pauh
Pulau Pinang
Madam Janatul Akmar
Lecturer of Fundamental of Entrepreneurship (ENT300)
Faculty of Business and Management
UiTM Pulau Pinang 27th January 2023

Dear Madam,

SUBMISSION OF THE BUSINESS PLAN

Regarding to the matter above, our group would like to submit our business plan for
your kind evaluation and further action.. Our business’s name is Churrorama. Our
business is a partnership set up with the following business partners and address:

Partners:

1. Ammar Wafiy Bin Nasir (2022562909)

2. Muhammad Adnil Muqrish Bin Rashid (2022979289)

3. Ahmad Zaffran Hakimi Bin Abdul Razak (2022732375)

4. Muhammad Iman Ilham Bin Ahmad Shufi (2021268816)

5. Ammar Ridhwan Bin Mohamed Khir (2021642404)

Business Address:
3068, Jalan Todak, Pusat Bandar Seberang Jaya, 13700 Seberang Jaya. Pulau Pinang

63
We have tried our best to prepare this business plan according to the subject
requirements. This working paper is a reflection of our efforts and experience to
make this business successful.

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We hope that our business plan will satisfy your requirement for this subject (ENT 300). We look forward for
your comments and feedback to improve our business planin order to instill sentimental value among the
community.

Sincerely,

Name : Ammar Wafiy Bin Nasir

General Manager

Name : Muhammad Iman Ilham Bin Ahmad Shufi

Administrative Manager

Name : Muhammad Adnil Muqrish Bin Rashid

Marketing Manager

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Name : Ahmad Zaffran Hakimi Bin Abdul
Operation Manager

Name : Ammar Ridhwan Bin Mohamed Khir

Financial Manager

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 PARTNERSHIP AGREEMENT

This Partnership Agreement is made on “20th December 2022” between Ammar Wafiy
Bin Nasir, Muhammad Iman Ilham Bin Ahmad Shufi, Muhammad Adnil Muqrish Bin
Rashid, Ahmad Zaffran Hakimi Bin Abdul and Ammar Ridhwan Bin Mohamed Khir.

1. CHURRORAMA

This parties hereby form a partnership under the name of “Churrorama Enterprise” to
do an on site business of selling churros. The location of this business’s office shall be
at 3068, Jalan Todak, Pusat Bandar Seberang Jaya, 13700 Seberang Jaya. Pulau
Pinang.

2. Term

The partnership shall begin on “20th December 2022” and will continue until every
partner agreed to terminate this partnership agreement.

3. Capital

The capital of this partnership shall be contributed in cash by each partner as follows:

i. A separate capital account needs to maintain for each partner.

ii. Neither partner shall withdraw any part of their capital account.

iii. Upon the demand of either partner, the capital accounts of the partners shall be
maintained at all times in the proportions in which the partners share in the
profits and losses of the partnership.
iv. The capital contribution to the partnership is stated as in below table:

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 Name Position Capital Percentage
Contribution Contribution
(RM) (%)

AMMAR WAFIY BIN FINANCIAL RM 50 000.00 20%

NASIR MANAGER

RM 50 000.00 20%
MUHAMMAD ADNIL MARKETING
MUQRISH BIN MANAGER
RASHID
RM 50 000.00 20%
MUHAMMAD IMAN ADMINISTRATIVE
ILHAM BIN AHMAD MANAGER
SHUFI
RM 50 000.00 20%
AHMAD ZAFFRAN OPERATIONAL
HAKIMI BIN ABDUL MANAGER
RAZAK
RM 50 000.00 20%
AMMAR RIDHWAN FINANCIAL
BIN MOHAMED MANAGER
KHIR
RM 250,000.00 100%
TOTAL

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4. Profit and Loss

The net profit of the partnership and the net losses should be divided equally between
the partners. A separate income account should be maintained for each partner
because the partnership profit and losses will be credited to that account. If a partner
has no credit balance in their income account, losses need to be charged to their
capital account.

5. Salaries and Withdrawals

Partners shall receive any salary for services rendered to the partnership. Therefore,
each partner may, from time to time, withdraw the credit balance in their own income
account.

6. Interest

No interest should be paid on the initial contributions to the capital of the partnership
or any subsequent contributions of capital.

7. Management Duties and Restrictions

The partners must have equal rights in the management of the partnership business,
and each partner must dedicate their full time to the operation. Without the consent of
the other partner, neither partner shall borrow or lend money on behalf of the
partnership, or make, deliver, or accept any commercial paper, or execute any
mortgage, security agreement, bond, or lease, or buy or contract to buy, or sell or
contract to sell any property for or of the partnership other than the type of property
bought and sold in the normal course of business.

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 8. Banking

All funds of the partnership need to deposit in its name in such checking account or accounts that designated by
the partners. All withdrawals therefrom need to check byeach partner.

9. Document

The partnership document should be kept at the safe place in principal office of the partnership and each partner
are able to access the document at any time. The document has to keep the fiscal year basis and should be
closed and balanced at theend of each fiscal year. An audit has to be made as the closing date.

10. Voluntary Termination

The partnership may be dissolved at any moment by consent of the partners, in which case the partners must
liquidate the partnership's business with reasonable promptness.

11. Death

Upon the death of either partner, the surviving partner has the option of purchasing the decedent's interest in the
partnership or terminating and liquidating the partnership company.

12. Arbitration

Any dispute or claim arising out of or connected to this agreement, or its violation shall be resolved via arbitration
in accordance with the rules. The parties have signedthis agreement in witness thereto.

Executed this on 1 March of 2022 in Kepala Batas, Pulau Pinang, each partner agreed and signed this agreement
to show their commitment to this partnership.

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 Name : Ammar Wafiy Bin Nasir
General Manager

Name : Muhammad Iman Ilham Bin Ahmad Shufi

Administrative Manager

Name : Muhammad Adnil Muqrish Bin Rashid

Marketing Manager

Name : Ahmad Zaffran Hakimi Bin Abdul

Operation Manager

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Name : Ammar Ridhwan Bin Mohamed Khir
Financial Manager

WITNESSED BY:

NAME: MADAM JANATUL AKMAR

IC NO: -

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 COMPENSATION AND BENEFITS

 Social Security Organization (SOCSO)

SOCSO (Social Security Organization) is sometimes referred to as PERKESO
(Pertubuhan Keselamatan Sosial). It is a government agency formed in 1971 under
the Ministry of Human Resources. Under the Employee’s Social Security Act 1969, all
private companies in Malaysia are required to register with SOCSO. The purpose of
SOCSO is to give social security protection in terms of cash and benefits to employees
in the private sector in case of workplace injuries, emergencies, occupational sickness,
and death.

Both employers and employees should contribute to SOCSO payments. Employees

pay the smaller portion, depending on their income. The contribution rate ranges
from 0.5% to 3%. But for employees with a monthly salary of more than RM3,000, the
SOCSO contribution is optional.

There are two groups of members that can claim the SOCSO benefits:

i. Employee Injury Scheme: SOCSO says this “provides protection to an employee

against accident or an occupational disease arising out of and in the course of his
employment.” This includes industrial and commuting accidents, occupational
illnesses, and accidents during emergencies.
ii. Invalidity Pension Scheme: This is 24-hour coverage against invalidity. Invalidity
is defined as a morbid condition that is deemed difficult to cure. This includes
people with terminal illnesses that would stop them from working.

If the worker gets injured because of a workplace accident, worker can apply for
permanent disablement benefits, regardless of the ability to return to work. For the
application, there are several documents that need to be prepared.

When filing a claim, referred to the doctor result, if the doctor states that worker unfit
to work for a minimum of four days starting from the day of the accident, worker will
qualify for temporary disablement benefits and can expect compensation.

If worker does not satisfy with the decision, worker can file an appeal within 90 days
from date of the notice.

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 Employer Provident Fund (EPF)
The Employees Provident Fund (EPF), established in 1951, is one of the oldest and
largest retirement funds in the world. Its purpose has been to be a social security
organization primarily providing retirement benefits for private sector and pensionable
employees in Malaysia. As an employer, the responsibilities include paying EPF
contributions in respect of any person engaged to work under a Contract of Service
or Apprenticeship. Over the years, the EPF has proven to be a responsible and efficient
custodian of its members' retirement savings, playing a significant role in society by
providing a majority of Malaysians or their beneficiaries with a measure of financial
protection. Which enables members to attain homes and higher education, and also
as a means during retirement, death, disability or when seeking medical treatment.

 Performance - Based Compensation

Performance - based compensation is the monetary pay depends on how individual
representatives, divisions, the organization, or the organization's stock price performs
during a specific period and in accordance with the association's pre- decided
objectives. Organizations that employ these frameworks should be prepared to
characterize and monitor execution, as well as provide payment in a rewards form,
when targets are met by benchmark.

 Employment Act 1955

The Employment Act 1955 ("Employment Act") governs employment law in Malaysia.
The Employment Act establishes some minimum benefits for eligible employees. For
relevant employees, any condition in an employment contract that pretends to provide
less favorable benefits than those set forth in the Employment Act is void and
substituted with the Employment Act's minimum benefits.

The protection under the Employment Act only applies to these categories of
employees:
✓ Employees whose monthly salary does not exceed RM 2000
✓ Employees who are engaged in manual labour, regardless of salary
✓ Employees engaged in operation or maintenance of mechanically propelled
vehicle
✓ Employees who supervise or oversees other employees engaged in manual
labour
✓ Employees engaged in any capacity on a vessel (subject to certain other

74
 condition)

1. Rest day
Every employee should be allowed in each week as a rest day. The selected day
need to be determined from time to time by the employer.

2. Holidays
Every employee should be entitled to a paid holiday at his ordinary rate of pay on ten
gazette public holidays in any one calendar year which are:
✓ The National Day;
✓ The Birthday of the Yang di-Pertuan Agong;
✓ The Birthday of the Ruler or the Yang di-Pertua Negeri;
✓ The Workers’ Day;

3. Annual leave
An employees can be entitled to paid annual leave based on:
✓ Eight days for every twelve months of continuous service with the same
employer if he has been employed by that employer for a period of less than
two years
✓ Twelve days for every twelve months of continuous service with the same
employer if he has been employed by that employer for a period of two years
or more but less than five years; and
✓ Sixteen days for every twelve months of continuous service with the same
employer if he has been employed by that employer for a period of five years
or more, and if he has not completed twelve months of continuous service with
the same employer during the year in which his contract of service terminates,
his entitlement to paid annual leave shall be in direct proportion to the number
of completed months of service

4. Sick leave
An employee need to know that:
✓ Register medical practitioner duty appointed
✓ If no medical practitioner is appointed or having regard to the nature or
circumstances of the illness, the service of the medical practitioner are not
obtainable within a reasonable time or distance, by any other registered medical
practitioner, be entitled to paid sick leave:

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i. Where no hospitalization is necessary
ii. Fourteen days in aggregate in each calendar year if the employee has been
employed for less than two years
iii. Eighteen days in the aggregate in each calendar year if the employee has been
employed for two years or more but less than five years
iv. Twenty-two days in the aggregate in each calendar year if the employee has
been employed for five years or more
v. Sixty days in the aggregate in each calendar year if hospitalization is necessary
as may be certified by such registered medical practitioner

Provided that the total number of days of paid sick leave in a calendar year which an
employee is entitled to under this section shall be aggregate. An employee also needs
to entitle to paid sick leave under paragraphs (aa) and (bb) of subsection (1) after
examination by a dental surgeon as defined in the Dental Act 1971.

5. Maternity leave
Each female employee should be entitled to maternity leave for a period of not less
than sixty consecutive days. Besides, a female employee shall not be entitled to any
maternity allowance if at the time of her confinement she has five or more surviving
children.

6. Over Time
Overtime labour performed in excess of the customary hours of work should be
compensated at a rate not less than one and a half times the employee's hourly rate
of pay, regardless of the basis on which his rate of pay is determined. In this section,
"overtime" refers to the number of hours worked in excess of the typical number of
hours worked every day. Provided, however, that if any work is completed beyond
the ten-hour spread over period, the whole period commencing when the said spread
over period ends and ending when the employee leaves work for the day shall be
considered overtime.

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Any other terms and conditions are: -

✓ Paternity Leave
Male employees are eligible to 2 working days leave for the birth of their ownchild up to 5
surviving children.

✓ Marriage Leave
Employees are entitled for 5 days leave for first legal marriage per employment.

✓ Compassionate Leave
Every employee is entitled for 3 consecutive working days on the death of their immediate
family member.

✓ Bonus
The bonus will be granted to employees at a rate of 30 % of the monthly salaries depend on
the company’s performance.

✓ The Annual Increment

Employees will be paid with an annual increment based on the individual performance at a
rate of 5% to 30% per annum. Those who fail to achieve theperformance standard will not be
granted with an annual increment.

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FINANCIAL PLANNING (GRAPH)

RETURN ON EQUITY

RETURN ON INVESTMENT

DEBT TO EQUITY RATIO

78
REFERENCE
FINANCIAL PLANNING CHURRORAMA.xlsx

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