COMPANY:HEALTHY LIVING INDUSTRIES

1. INTRODUCTION
a) Name of the business : Healthy Living Industries
b) Type of business : Marketing and Manufacturing
c) Industry Overview : Beverage
d) Location of the business : Nibong Tebal, Industry Estate
e) Date of Commencement : 1st February 2010
f) Factors influencing choice of business : Demand,supply and
government incentive

2. PURPOSE
This business plan is prepared by Healthy Living Industries to obtain a
term loan for the amount of RM50,000 from the bank. Its also prepared as
a guideline in managing the business.

3. BACKGROUND OF THE BUSINESS

a) Name of the business : Healthy Living Industries
b) Business and Correspondence address : 1378, Jalan Bukit Panchor,
14300 Nibong Tebal,
S.P.S, Pulau Pinang,Malaysia.
c) Telephone number : 04-5931409
d) Form of the business : Marketing
e) Main activity : Manufacturing
g) Date of commencement of business : 1st February 2010
h) Date of business registration : 2nd January 2010
i) Name of bank : EON Bank Berhad
j) Bank account number : 5319006735
k) Equity contribution : RM 25,000
MANAGEMENT FUNCTIONS

1. PLANNING

a) Introduction to product/service

 De Royal Tea is made of finest orange pekoe teas which were grown
5000 feet above the sea level. Our tea leaves were meticulously
selected for their character and full flavour to give you the
unmistakable, distinctive taste of pure traditional royal tea. We
guarantee that our tea is 100% highland tea and free from artificial
colourings and flavourings

b) Target Market

 Male and Female

c) Market size

 The market size is in the Nibong Tebal,Penang. We will also market

our product to whole Malaysia.In future, the organization will market
the tea to worldwide.
d) Competition

 De royal Tea’s competition is BOH and Lipton. But still we can

produce a good product to the customer. Heavy competition between
tea retailers creates an industry where all firms face the same cost. De
royal tea have an own farm of tea and from there we get a good tea
leaves.
e) Market Share

 20% of beverage customers

f) Sales forecast

Sales Forecast
Sales (RM)
Jan 20,525
Feb 22,978
Mac 24,765
Apr 26,007
May 28,118
Jun 30,265
Jul 32,715
Aug 34,625
Sept 36,899
Oct 38,409
Nov 40,578
Dec 42,537
Total 378,421

Monthly Sales Forecast

Jan
45,000
40,000 Feb
35,000 Mac
30,000 Apr
25,000 May
Sales

20,000 Jun
15,000 Jul
10,000 Aug
5,000
Sept
0
Oct
1
Nov
Months
Dec
g) Marketing Strategies and Marketing Budget

 Healthy Living Industries will have a somewhat limited marketing

budget. The main reason for this will be because some of the money
that would otherwise be spent on marketing efforts will be used for
rent. By choosing a well-traveled, shoplots to locate Healthy Living
Industries in, it will receive a lot of walk through traffic. The cost of
having this location takes the form of higher than normal rent. Part of
the high cost of rent is just an expense if you want to locate a shop in a
popular commercial property. The money from the marketing budget
will be spent on the following marketing initiatives:
 Advertisements: Advertisements will be placed in four different local
newspapers, the Berita Harian, Nyanyang Siang Pau, Malaysia Nanban
and News Straits Times. Berita Harian is a Malay newspaper and
buyers are high from all region, Nyanyang Siang Pau is a Chinese
newspaper its for those who are not able read Malay newspaper.
Malaysia Nanban is Tamil newspaper also for people are not eligible to
read in Malay. And lastly News Straits Times for those can read in
English.
 Flyers : Flyers will be given in the supermarkets and house to house
flyers will be given.
 4. ORGANIZING
a) Process Flow Chart

b) Unit Input/Hours of Operations

Fresh tea leaves Sorting & cleaning Withering

Shaking or rolling in baskets to bruise leaf edges.

Short fermentation
De Royal Tea Panfrying

 1,000 box per day, 8 hours production

c) Material Requirement
 Wrapping plastic

 Tea box

 Aluminium foil

 Tea leaves

d) List of Machines and Equipment

 Weighing scale

 Wrapping machine

 Scaling machine

 Expiry date printing machine

5. DIRECTING
 Sources of Financing

The sources for the business is equal share from 3 person. Its a partnership
business and from the bank loan.
 Loan Amortization Schelude

RM 50,000 loan
5% interest
RM 500 payback to the bank monthly
 Cash Flow Proforma

2010 2011 2012 2013

(RM) (RM) (RM) (RM)
Beginning Cash Flow   332,721 683,795 664,808
Sales 378,421 398,674 420,113 442,342
Total Cash Inflows 378,421 731,395 1,103,908 1,107,150
         
Cash Outflows
(expenses)        
Advertising 1,200 1,500 2,500 3,500
Wages 10,000 10,000 15,000 20,000
Maintenance and repairs 500 600 500 1,200
Utilities and telephone 3000 3500 3600 4,000
Insurance 1,000 2000 2500 2,500
Bank Loan 30,000 30,000 35,000 40,000
Subtotal 45,700 47,600 59,100 71,200
Ending Cash Balance 332,721 683,795 1,044,808 1,035,950
 profit and Loss Proforma

2010 2011 2012 2013

(RM) (RM) (RM) (RM)
Revenue :
Gross Sales 378,421 398,674 420,113 442,342
Less: Sales Returns and
Allowances 0 0 0 0
Net Sales 378,421 398,674 420,113 442,342

Cost of Goods:
Materials 3,500 5,600 7,500 9,800
Variable Labor 0 0 0 0
3,500 5,600 7,500 9,800
Less: Ending Inventory 0 0 0 0
Cost of Goods Sold: 3,500 5,600 7,500 9,800

Gross Profit (Loss) 374,921 393,074 412,613 432,542

Controllable Expenses :
Advertising 1,200 1,500 2,500 3,500
Wages 10,000 10,000 15,000 20,000
Maintenance and Repairs 500 600 500 1,200

Fixed Expenses :
Insurance 1,000 2000 2500 2,500
Utilities 3000 3500 3600 4,000
Total Expenses 15,700 17,600 24,100 31,200
 Net Operating Income 359,221 375,474 388,513 401,342

Net Income (Loss) 359,221 375,474 388,513 401,342

 Balance Sheet Proforma

2010 2011 2012 2013

(RM) (RM) (RM) (RM)
ASSETS
Current Assets
Cash 5,400 5,700 5,900 6,400
Net Accounts Receivable 367 396 426 435
Inventory 177 191 203 205
Temprorary Investment 12 12 12 12
Prepaid Expenses 2 2 2 2
Total Current Assets 5,958 6,301 6,543 7,054

FIXED ASSETS
Long-term Investment 420 493 423 546

Land 6,569 6,516 6,384 7,207

Buildings (Net of depreciation) 903 928 983 1021
Plant & Equipment (net) 608 631 642 654

Furnitures & Fixtures (net) 6,561 6,585 6,878 7,092

Total Net Fixed Assets 15,061 15,153 15,310 16,520

TOTAL ASSETS 21,019 21,454 21,853 23,574

LIABILITIES
Current Liabilities
Accounts Payable 246 252 258 277
Short-term notes 24 25 26 28
Current Portion of long-term notes 14 14 14 15
 Accruals & other payables 14 14 14 14
Total Current Liabilities 298 305 312 334

Long-term Liabilities
Mortgage 897 931 978 1021
Other long-term liabilities 443 485 527 576

Total Long-term Liabilities 1,340 1,416 1,505 1,597

SHAREHOLDER'S EQUITY
Capital Stock 300 300 300 300

Retained Earnings 19,081 19,433 19,736 21,343

Total Shareholder's Equity 19,381 19,733 20,036 21,643

TOTAL LIABILITIES &
EQUITY 21,019 21,454 21,853 23,574

6. CONTROLLING
a) General business description
This business is mainly to manufacture tea and distribute it to all over the
Malaysia people.
b) Organizational Chart

CEO

MANAGER

QUALITY
MARKETING CONTROL LOGISTIC
 Table of job designation, number of workers and job description.
JOB NUMBER OF WORKER JOB DESCRIPTION
CEO 3 Lead the business to achive
its goal
Manager 6 Supervise all the department
in the organization
Marketing 5 Responsible to market the
product and find the
customers need.
Manufacturing 10 Responsible to produce a
quality product to customer.
Quality Control 2 Controls the quality and
standard of the product
Accountant 1 Prepare an income
statement for the
organization.
Logistic 3 Handles the product
delivery and receiving of
raw materials.
 c) Remuneration table

Job Wages (each person per month)

CEO 10,000
Manager 5,000
Marketing 600 + 10% commission + transport elaunce
Manufacturing 800 + incentives + transport elaunce
Quality Control 1,000
Accountant 1,500
Logistic 900
The workers will be given EPF and SOCSO and organization’s contribution is
11%
d) List of office furniture, fixtures and fittings

 Director table

 Director chairs

 Director cabins, staff cabins and meeting room

 Air conditioner

 Tables for staff

 Chairs for staff

 Customer discussion room

 Cupboard

 Flurocent lights

 Toilets
  Whiteboard

e) The administrative budget

The organization will spend some money for these :

 Water – RM100

 Electricity-RM 2,000

 Telephone-RM 500

 Staff entertainment- RM 1,000

SOCIAL RESPONSIBILITY TO CUSTOMERS

Today, modern science gives credence to these ancient writings and beliefs.

In 1998, at the Second International Scientific Symposium held in Washington

DC, Symposium Chairman Dr John Weisburger, who is also a senior member of
the American Health Foundation, said: "Tea has great potential to help reduce
the incidence of major disease worldwide especially when combined with a
healthy lifestyle.”

Just how and why is tea so good for you? Decades of research reveals that this
goodness lies in two vital elements that make up the drink:

 Its antioxidant concentration

 Its vitamins & mineral content

Another study by Dr. Joseph Vita at Boston's School of Medicine supported these
results. For four months, sixty-six men drank four cups of either black tea or a
placebo daily. Dr. Vita concluded that drinking black tea can help reverse an
abnormal functioning of the blood vessels that can contribute to stroke or heart
attack. Dr. Allan H. Conney, chairman of the College of Pharmacy at Rutgers
University and director of the Laboratory for Cancer Research, says
emphatically, "Both green and black tea have been found to inhibit cancer
formation in many animal studies."
 Research is still relatively new, and it will be a while until there is strong evidence
confirming the benefits.

For now, the evidence is leaning towards the fact is that whether green, oolong
or black, tea is a rich and healthy source of antioxidants which give great benefit
to the drinker.
MARKETING

Here in Malaysia, tea is more than just a drink. De Royal Tea both creates and
complements the social situation whether it is a meeting of friends, a family get-
together or a corporate appointment.

At the same time, De Royal Tea is a beverage that transcends creed or culture.
Regardless of favourite football teams, political opinions or religious beliefs,
every Malaysian is sure to find common ground when it comes to having a cup of
tea.

This is the essence of this simple yet great-tasting brew. Whether tarik-ed and
frothy, ice-cold with a squeeze of lime or steaming and fragrant, tea brings
people together.

De Royal Tea understands this unique feature better than anyone.

our intention to provide our products in lower margin profit prices as we handle
orders and purchases in large volume.

Selected mountain tea, characterized by its eyebrow shaped and fine tea leaves.
It’s said that: high mountains produce good tea.
%
The tea looks uniform,touches soft and thick, tastes mellow with strong lasting
fragrance.
%
Our company have done international business for many years, so we are
confident we can offer professional service to you.
%
We can offer Certificate of Origin, Phytostanitary Certificate and Certificate of
Quality by CIQ(issued by Chinese Inspection) and any other certificate you need.

We can supply products in time and we have steady shipment.

HUMAN RESOURCES MANAGEMENT

We are proud of our product at. and we are committed to embracing the
wonderful uniqueness of individuals as we grow our teams and our
company. Healthy Living Industries is an equal opportunity employer and does
not discriminate against its qualified employees or applicants because of sex,
race, age, religion, national origin, disability, sexual orientation, or any other
protected status as determined by state or federal law. Equal employment
opportunity will be extended to all persons in all aspects of the employer-
employee relationship, including: recruitment, hiring, upgrading, training,
promotion, transfer, discipline, layoff, and termination. Employment opportunities
with Healthy Living Industries. are and shall be open to all qualified applicants
solely on the basis of their experience, aptitudes and abilities. Advancements
shall be based on such factors as: quality of work, prior job performance,
abilities, attendance, safety record, and ability to work well with others.

BUSINESS ETHICS

It is our main objective to provide the best yet affordable tea.Therefore our
company ensures the following below:

 Giving the best in quality of the products we carry and sell, ensuring them
to be defect free
 Updating the latest flavor tea on our online store catalog every montly,
keeping up with the latest flavor of tea
 Providing the best in our products packaging and ensuring fast delivery of
stocks to cater to our customers' needs
 Exchanging of products that are short of our customer expectation based
on the stock return policy

Healthy Living Industries is a registered business in Registrar of Companies

Malaysia (SSM), under the business name of de royal tea(001881633-D).
Our company is registered company.We sale a lot of type of tea for your healthy
and we are not lie to progress our business.we are honest seller. This project is
worthy in terms of finance because if we see the forecast of the profit and loss
proforma its shows that the company is gaining profit rather than loss. Its also a
good product in the market. The cash flow is growing smoothly. De royal tea is
goin to meet the customers need.