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BMCG (SECTION 9)
GROUP ASSIGNMENT: BUSINESS PLAN
COMPANY: EZ WATER MANAGEMENT SDN. BHD.
SECTION 1
EXECUTIVE SUMMARY
Nowadays, rain water filter in markets require users to switch on the system first before
the filter can start to operate. The consumption of electrical energy for a rain water filter to
operate increases the electric bill for a house that use this technology which is not efficient for
domestic uses only. The most frequent problem that occurs in rain water filter system is when it
gets clogged with trashes that enters the system and cause the functional failure of the whole
system.
This business plan includes a proposal for a product known as “Self-Cleaning Rain Water
Filter” (Secrawfil) that will improve the current rain water filters products available in markets
today. Secrawfil is a type of rain water filter that different from others due to its ability to clean
the inner system by itself without the need of frequent maintenance as other products required to.
The product will be developed and installed outside of the customers’ house or office for
domestic uses as cleaning, toilet flushing and irrigation system.
The Secrawfil will operate automatically when rain enters the system. It does not require
any electrical energy for the system to start operating and clean itself from trashes and foreign
objects because it only uses the gravitational force for the system to work automatically. A fan is
installed within the system which is attached with brushes that will push away the foreign objects
when the rain forces the fan blades to make the shaft rotate.
The target customers that this product will be sold to are those who want to cut down
their electric and water bills, the people who are concern about saving the energy for future
generation and also for those who like to have the automated products running in their homes.
This product will fulfill the users demand regarding the current rain water filter products
available in market nowadays.
The company will strengthen up the business within the Peninsular of Malaysia before
enlarging the coverage to other countries in Southeast Asia in 2022. The Board of Directors have
seen the potential of this product and set the target for the business to grow bigger within these
initial years.
SECTION 2
INTRODUCTION TO THE COMPANY
Ez Water Management Sdn. Bhd made collaboration with contractors for the product
development. The company focus on designing and developing products that save the energy in
their operations. This self-cleaning rain water filter will let the users experience the better way to
save money while at the same time, saving the energy for the future generation.
2. 1 Company background
This company will be set up in February of 2019 right after a complete discourse between
the shareholders in regards to the bearing of the company that brings the aim to diminish the
current issues face by users of the current products in market. The shareholders comprises of six
people who are ready to start a new experience in business field that uses the knowledge in
engineering and technology to develop and sell the product to the customers.
The challenges in developing the product came when it involved the search of suppliers
for components and parts that need to be installed according to the design that has been made.
The design stage also came into many various trial and error process where it must fit the needs
of customer with the availability of the components and parts suppliers that have correct
specification and can supply in the large quantity required in development process later.
It tooks one year and a half for the company to reach the target after all the experiences
gaining process which involved all the shareholders to put themselves in many roles to ensure
they know all the processes from designing to selling the product to the customers. Currently,
they are 30 customers who agreed to install the Secrawfil in their homes and offices around
Malaysia. The company has target to increase the number of employees for installation of the
technology and for marketing department for a couple of years ahead.
2. 2 Business intent
Raining is quite common in our country and rain water filter will help to save lots of
water and money. Based on the survey and observation, those people who installed the rain water
filter face some issue which is the filter being clogged by leaves or trashes and lead to
malfunction of the filter. This problem occurs anytime without witness by the owner then the
filter will damage very fast and this results in wasting of money.
2. 2. 2 Market needs
Malaysia is a country without four season but raining frequently happen throughout the
year. After some survey conducted, we are confident that every household in Malaysia need to
solve the electricity and water billing increment problems. Other than money, household also do
not need to worry about the maintenance of the product and the operation of the system. Time
can be saved and let the people to focus more on other important jobs.
2. 2. 3 Degree of innovation
This is the first DIY automatic rain water filter ever invented that can ease the house
chores in Malaysia and it is a great opportunity for business development since there are no
competitors yet in the market. Malaysia rapidly growing country in Southeast Asia should be a
land of profit as the working sector tremendously grows as well.
2. 3 Growth strategies
In order to achieve the vision, mission and goal of the company, a few strategies have to
be planned. The strategies are in term of economic, technology and product services, and
marketing strategies. All the strategies should be arranged and plan wisely in order to achieve
goal of the company. Milestone of a company should be recorded in order to know how the
company has expanded year by year.
2. 3. 1 Financial strategies
This company’s financial resources to develop the product are from individual loan. The
capital required to build up this company is RM300,000. A major shareholder contributes 50% of
the total amount, while the rest shared between the other five shareholders. The capital required
to form this company is moderate. Each member of the shareholders makes a financial loan from
a public bank of RM30,000 which is equal to 10% of each shareholder while the major
shareholder contributes half of the initial capital amount. The aim is to ensure there will be
sufficient initial capital to achieve a rise in profit in the future.
2. 4 Target markets
In each of every company they usually set their own target market which also applied in
our company. As our product can be created anytime with any reusable material, so our company
own target market mainly focus on attracting the people that have moderate income.
Besides, since our company started in Melaka, the areas of the targeted market are
developed area such as Ayeh Keroh, Bukit Beruang and Melaka town which have many housing
area. This is because mostly of the people who lived in the city have a high living cost and
always leave their home for work during the daytime. They have no time to work on the
maintenance of the filter. Hence, the rain water filter offered will make the people interested. Our
company has set a target to expand our business to other state out of Melaka after the company
based in Melaka is stable. Then, company will slowly try to expand the business to the
international market.
Lastly, our company also targets to attract the water filter contractor that is willing to
invest on our product during the process of building the house. They might can be a shareholder
or investor that can contribute lots of profit and capital to the company.
2. 4. 1 Business opportunities
After having some research on previous inventor on the filter, there have been important
developments in the way how the rain water filter function. Normally, the rain water filter device
cost very expensive in the market as the material used is very high tech and high resistance.
Other than that, the filter in market now does not have automatic operation. Trash easily clogged
on the entrance of the filter causing severe damage to the system. Frequent maintenance needed
and waste lots of money on it. If the trashes is big and hard, user may need to rebuy the new
filter.
It is very important to provide the solution for the customer needs if our company wants
to be competitive in the market. The solutions and changes that are innovative can drive the
business forward in the future to achieve the company goals. There are a lot of opportunities for
Secrawfil since nowadays there are no automatic filter that make life easy and save lot of time.
2. 5 Revenue model
Service Installing and Gain trust from Need to hire extra - Installation
maintenance customer for personnel for
service is providing the installation
provided to installation service.
customer and service of the
customer pays for product..
the product.
Installation
process takes only
few hours
2. 6. 1 Location
At the beginning of the business, we have decided to choose Ayer Keroh to start
operating our company. This is because the location is at the industrial site. Other than that,
setting up at Ayeh keroh also because of most factories and supplies at this area. Near to material
supplies factory could save a lot of time and money based on transportation cost. For the product,
the company will design itself and assign the manufacturer and supplier to fabricate the product.
All of the product will be produced by the factory.
2. 6. 3 Labour
The labour plays the important role in an organisation. They are the one who willing to
do all those hard work to ensure the production go smooth. They also the people that will be the
one who will deliver the product safely and install the product at the customer’s house. In this
business, labour consists of technician, drive, operator and so on. They are the competent person
who have skills in their own designated field and make sure the system is going safe and
performing well.
2. 7. 1 Brand recognition
Brand recognition refers to the skills that a brand occupied in the mind of the customer
and how it is distinguished from the competitor’s products. In order to effectively position our
product in customer mind, our company decided to conduct several actions such as creating
unique company’s logo with cloud and rain design to deliver the message of rainy day used
product and navy blue to represent the belief of keeping the bad spirit away. Our tagline
“Develop Better Future” refers to every design and development of our company can bring life
to become higher level in innovative and creative and a better future.
Apart from creating unique brand elements, we also emphasize on producing the unique
product and provide higher quality service. There is least automated filter product in the current
market, so with our outstanding automatic product with affordable price can effectively place a
position in our customer’s mind.
Monitor the way company competitors do business. List to take note at:
1. Charging fee apply on customers.
2. Delivery and distribute system.
3. Maintenance fee.
4. Products or services competitors provide and how they market them to customers.
5. What kind of person owns the business and what identity they are.
6. How they promoting and the advertising method.
7. Their customer service and staff numbers.
8. The company annual report- if they are a public company.
9. Their website updates - check their website as well as local newspapers, radio, television
and any outdoor advertising.
If the company competitors are changing and improving better than us, the main board of
directors need to gather up in round table discussion and suggest ideas to make some changes. It
might be anything from improving customer service, website promotion, assessing company
prices and updating company products and services. Marketing new idea need to be enhanced,
and they should give idea on how to improve company literature and website, and changing
company suppliers if needed.
ITEMS LISTS
3. 1 Management Team
The management team of the company involves the pioneer person who emphasize that
develop the business to make the product to compete in the market. This management team play
the important role in the company which are to analyses and identifies the business goals and
objectives and implements and enforces the strategies the employees need to achieve success.
There are several member that will involves in management team and has their own scopes of
work of their position in the organization. The management team of the company business is
shown as Figure 3. 1.
Status Single
Email farahalzahari@gmail.com
Permanent Address JKR 1310, Blok 2, Tingkat 3, Polis Depoh, 80990, Johor
Bahru, Johor.
Gender Male
Status Single
Email iddham11@gmail.com
Gender Male
Status Single
Email nashazard28@gmail.com
Age 23
Gender Male
Status Single
Email liankai_95@hotmail.com
Gender Male
Status Single
Email hasif021095@gmail.com
Permanent Address Lot 1412, Jalan Orkid Batu 7 Ijok, 45600 Bestari Jaya,
Selangor
Gender MALE
Status Married
Email shukri_peace@yahoo.com
Designations and roles of each senior-executive management team member are shown in
Table 3. 7.
Table 3. 7: Designations and roles of senior-executive management team members.
Chief Financial ● Train the Finance Unit and other staff on raising
Officer (CFO) awareness and knowledge of financial management
matters.
● Manage the capital request and budgeting processes
● Ensure that all financial transactions go smoothly.
● Report financial results to the board of directors
● Monitor cash balances and cash forecasts
● Ensure that record keeping meets the requirements of
auditors and government agencies
Chief Marketing ● Facilitate growth, sales, and marketing strategies of the
Officer (CMO) company.
● Prepare overall marketing strategy.
● Implement and manage marketing budget.
● Design and improve upon marketing campaigns for
each aspect of company
● Update the sales and orders of company.
Chief Technical ● Control and manage all the technical activities and
Officer (CTO) maintenance
● Manage the quality control and quality assurance of the
product and production line
● Manage system installation, operation and perform
system check-up.
● Manage sustainable development on production,
product and waste management.
Chief Operating Officer ● Manage the production schedule and arrangement
(COO) ● maintaining and monitoring staffing, levels,
Knowledge-Skills-Attributes (KSA), expectations and
motivation to fulfill organizational requirements
● Driving performance measures for the operation
● Developing and cascading the organization's
strategy/mission statement to the lower-ranking staff.
● implementing appropriate rewards/recognition and
coaching/corrective practices to align personnel with
company goals.
3. 2 Organizational chart
The organization of the company is constructed for the systematic management of the
company. It involving the experience and knowledge worker in the organization to guide the
team member to performing their work scopes. Organizational chart of the company is shown in
Figure 3. 8.
Figure 3. 8: Organizational chart of the company.
Human Resource Strategic Plan for 3 years planning will be focusing on development of
the company member and expertise. This to ensure every division have expertise in their field t
to ensure the company activities running smoothly with supervision from experience worker.
The human resource strategic plan which has been constructed for 5 years period starting from
2018 to 2020 is show in Table 3. 9 below.
Table 3. 9: Human Resource Strategic Plan (2018-2020)
Technical Division
Operation Division
Financial Division
Figure 4. 2: The fan that is connected to shaft with brushes and bearings.
Figure 4. 3: The design of the fixed components on the lower of the system.
As the design made for the system to be self-functioning without any need of electricity,
the system will run when the rain falls. The rainwater from the roof irrigation system will enter
the rainwater filter via the center of the upper part of the product. The energy from the
movement of the rainwater that immediately hit the fan blades, will force the shaft to rotate
together. Brushes will act as the sweeper which remove the foreign particles accumulated onto
the filter so that it can be carried away into the drain. The filtered water will be supplied to the
collecting area as tank or other storage system.
4. 1. 2 Service
All of our service are normally the installation on the rainwater filter and the monthly
maintenance services. For the installation service, once order we will send our worker to
customer house and check the house situation for a perfect location for our product to have
optimum function. We suggest to install at higher place where rainwater touches the area first.
Other than that, customer can also custom and choose where to locate the product. After
installation, we will provided a 1 years warranty after purchase. The regular service will also be
provided on the mechanical parts which is the filter fan and the casing. Any damage caused by
the customer will be replaced with a new part.
4. 2. 1 Innovation
Our company targeted to enhance the product by one part per annual for the innovation
purpose. While the technologies will be improved time to time on the future. The product will be
improved on the design structure and the system which can provide more help to the customer. A
new product will be tested by our crew to give a one hundred percent satisfaction to the
customers. We will ensure all the product will passed quality issue before sending out to all of
our customers.
5. 1 Marketing overview
All successful products or brands need well-planned marketing strategies in place to
ensure that they satisfy the goals set by the corresponding business unit or geographic level and,
in turn, the overall corporate marketing strategy. Marketing plan tells how the company plan to
sell the products. Because selling our products is fundamental to our company’s success, it is
essential that our business plan include an outline of the marketing plan we will follow to
achieve sales success.
5. 2 Marketing programs
Marketing is the management process through which goods and services move from
concept to the customer. Marketing includes the coordination of four elements called the 4 P’s of
marketing which are product, price, place and promotion.
● Price – Price covers the actual amount the end user is expected to pay for a product. How
a product is priced will directly affect how it sells. Once a concrete understanding of the
product offering is established we can start making some pricing decisions. Price
determinations will impact profit margins, supply, demand and marketing strategy.
Similar (in concept) products and brands may need to be positioned differently based on
varying price points, while price elasticity considerations may influence our next two Ps.
● Promotion – We have got a product and a price now it’s time to promote it. Promotion
looks at the many ways marketing agencies disseminate relevant product information to
consumers and differentiate a particular product or service. Promotion includes elements
like: advertising, public relations, social media marketing, email marketing, search engine
marketing, video marketing and more. Each touch point must be supported by a well
positioned brand to truly maximize return on investment.
● Place – Place or placement has to do with how the product will be provided to the
customer. Distribution is a key element of placement. The placement strategy will help
assess what channel is the most suited to a product. How a product is accessed by the end
user also needs to compliment the rest of the product strategy.
SECTION 6
FINANCIAL OVERVIEW
This chapter is will basically summarize the financial plan that have been planned by our
company for the next 12 months. Information about the forecast of company earned or loss will
be discussed in this section. Our financial plan is complete in detail of what and where we spend
the money at. This chapter of the business plan is one of the most essential component of the
plan as part of winning over the investors or obtaining a bank loan.
RM
Sales 3,252,000
Payroll 233,000
KWSP 67,074
PERKESO 7,582
Premise-Rental 60,000
Dep-Computer 7,000
Electricity 5,000
Telephone 2,500
Registration 3,000
Advertisement 40,000
Lorry 20,000
Interest-lorry 10,000
Interest-loan 2,000
Based on the Table 6.1, the annual income or profit for year 2018 is RM 907,075, which
is not bad for a starting company. The cost of the good sold is half the amount of the total annual
sales which is RM 1,626,000. Administrative & Marketing Expenses will cost the company RM
480,156 per year while just RM 12,000 for the operation cost. Furthermore, income tax is
unavoidable and it cost the company 20% of its annual income.
6. 2 Cash flow projection
Due to our new involvement in the business world, our company do not have historical
documents such as profit and loss statements and balance sheets from years past to base these
forecasts on. Table 6. 1 and Table 6. 2 project the cash-flow in statement that has been broken
down to 12 months. Based on Table 6. 2, the sale starts to increase from RM 70,000 to RM
80,000 from Jan until March. Then, it started to increase again by RM 10,000 in April then RM
5000 more in May. We forecast this increase in sale as there will also an increasing demands.
The monthly sale increase until December which it reach RM 134,000 per month. So the total of
the cash flow in the company for the first year in the business is RM 1,591,000. These number is
expected to rise annually.
RM RM RM
Non-Current Assets
Computer 35,000
Furniture 4,000
Current Assets
Bank 345,380
Current Liability
Non-current Liability
Funded by : Stockholders
Equity
The balance sheet in Table 6.3 is the statement of this company’s financial position.
When we subtract company’s liabilities from the assets, what is left is called the equity. The
Table 6.3 shows all the assets and the liability that the company have during the whole 12
months of operation. After the subtraction, the value of the stockholders equity is zero for the
first annual.
KWSP 2,100
PERKESO 520
Computer 35,000
Furniture 4,000
Dep-Computer 530
Dep-Furniture 100
Disposal 2,000
Registration 2000
Based on Table 6. 4, the major expenses is on the assets, which have a total amount of
RM 45,000. But for the assets expenses it only spent once during the start of the company. For
the Monthly expenses, payroll take up the most amount at RM 25,000 per month. While for the
total expenses that need to be spent by the company monthly is RM 41,850.
Table 6. 5: Marketing expenses EZ Water Management Sdn. Bhd.
Marketing 3,000
Dep-Lorry 2,564
Principal-Lorry 2,640
Interest-Lorry 897
Inventory 1,000
For the marketing expense, the company spend most of the money on the assets purchase
which is RM 90,000 for the lorry. While the monthly expense for the marketing is way low for
the administration at RM 10,001 per month.
6. 5 Breakdown sales
For the first two month we forecast the sale to be just 70 unit per month due to our new
establishment as a company. As the unit sale increase from July until August with the increment
of 30 units, and the unit selling at RM 1000 per system, the company sales reach RM100,000 per
month during the time. When the sales increase from 100 to 130 unit per month, the total sales
will reach up to RM 130,000 per month in October. The highest sales that have been forecasted
is the last month of the company in the first year which reach to 134 units per month and
increase the sales up to RM 134,000 per month. This is a good indicator as we see a constant
growth in unit sales. Furthermore, for the first 12 months of the company operation, it has made
the total sales up to RM 1,221,000 and that is a big number for a company that just initiated.
0 300,000
The company will realize the profit during the annual income when the stockholders’ equities
will increase annually. The investor will get a net growth of their stockholders’ equities annually.
SECTION 7
CONCLUSION
EZ Water Management Sdn. Bhd. is a company that cares about the water resources for
domestic usage in homes and offices. This company plans, designs, develops and sells the
products which are user-friendly and eco-friendly related to the rainwater filtration systems. It
started when there is a concern on saving the usage of water in home and office among the
founder and co-founder of this company. For the use of plants watering, car washing and toilet
flushing, it is better to use the rainwater due to the none of the need for the users to consume the
water into their body. EZ Water Management Sdn. Bhd. will be established in February 2019.
The company will have 6 shareholders in the company with starting capital of RM300,000 which
is divided into 50% for the founder and 10% for 5 others. Secrawfil is the main product of this
company which will help users collect filtered rainwater to be stored and used in their homes and
offices without the need of electricity and will save their water bills. All the plans have been
stated in this business plan of EZ Water Management Sdn. Bhd. with aims and targets to reach
customers’ trust and empowering marketability in Malaysia and international markets in the
future. We are looking forward to gain bank’s trust to approve the loan application based on
what we have explained and proved in this business plan.