Business Plan

Miss Moo Caf Sdn. Bhd.

April,2012
Business Plan Copy Number 1
This document is confidential. It is not for re-distribution .

CHUA PEI FEN

PETROLLINA ENGKUIN
YEE YUN HUAN
MISS MOO CAF LG2 75A,
NO. 2, AEON JUSCO STATION 18,
PENGKALAN IPOH, 31650 PERAK.
Phone: 05-3459800 Fax: 05-4678432
[email protected]
Company home page URL: [email protected]

Table of Contents
1.1 Executive Summary

2.1 Vision, Missions & Objectives

3.1 Company Overview
3.2 Legal Business Description
3.3 Strategic Alliances
4.1 Product
4.2 Current Product
4.3 Research and Development
4.4 Production and Delivery
5.1 The Market
5.2 Market Defination
5.3 Customer Profile
5.4 Marketing Plan
5.5 Sales Strategy
5.6 Distribution Channels
5.7 Advertising, Promotion, PR
6.1 Competition
7.1 Risk/Opportunity
8.1 Management Team
9.1 Capital Requirement
9.2 Exit/Payback Strategy
10.1 Financial Plan
10.2 Assumptions
10.3 Financial Statements
10.4 Conclusion
11.1 Exhibits
1.0 Executive Summary

Our initial statement to investors and Financial Lenders, this caf business plan,
is a candid disclosure of the Miss Moo Caf business proposal. Our intent is to
set realistic business expectations, and eliminate any questions about the
profitability of this business venture.
We, as business owners, have a vested stake and financial commitment in the
success of this cafe. Our intent is to have a definite business, financial, and
marketing plan that not only serves our need for capital financing, but is utilized
as our daily business roadmap. We have taken all precautions to validate our
business and financial models, focusing on realistic projections. We have
accomplished this as follows:
1. Our financial model is rooted in industry facts, not optimism. We have
based costs on our vast industry and practical experience with similar
ventures, validation against national caf industry cost averages, and
analysis against local Perak market averages. We have taken a
collective look at all figures to make solid business estimates.
2. Our caf provides variety of food and beverages made from fresh milk.
The fresh milk is imported from New Zealand through New Zealand
Milk (M) Sdn Bhd. New Zealand Milk is a leading global manufacturing
and marketer of high quality dairy products that taste great and provide
vital nutrition for people of all ages. Hence, the quality of our food and
beverages made from milk is high as well.
3. Our business concept was derived from detailed Market Analyses.
Instead of building a business around a preconceived concept, we
analyzed the market findings and built a concept around our
customers. In other words, our business is built to service an unmet
customer want. In addition, the healthy menu items provide an
alternative caf option for many customers.
4. A buffered financial plan that ensures adequate capitalization. A
contingency buffer is included in the start-up cost to ensure the
business in not under financed, as well as giving the business
adequate funding to sustain it in the first six months of start-up. Our
industry experience confirms a longer ramp-up stage for caf over
other retail/services business.
5. A solid Risk Mitigation Plan. We have evaluated traditional and nontraditional risks associated with caf failure and accounted for them
directly in the business plan. Instead of dismissing the risks, we have
identified valid mitigation strategies for each.
6. Deep Management Experience. Miss Moo Caf has a strong
management team consisting of its three owners. Each owner brings

education in business management. Additionally, each owner has

experience working in either the resort industry or the food industry.
7. The total capital requirement to launch Miss Moo Caf is RM740,000
of which RM643,000 is allocated to start-up capital, and RM97000 as
business operations cash reserve. This plan is being submitted in
order to secure a Business loan for RM430,000. The loan will be used
towards Equipment purchase, Design, Construction, and Operational
Start-Up expenses. Owners, Miss Yee Yun Huan, Miss Chua Pei Fen
and Miss Petrollina Enngkiun are investing RM110,000 in personal
capital. Private Investors, who will be part owners with a nonmanagerial interest in the business, will contribute the remaining
RM200,000.
As owners, our commitment is to take personal accountability for all financial
debt. We have taken the necessary precautions to ensure the business is fully
capitalized, and have addressed all financial shortfalls to ensure a successful
business start-up. Under a realistic scenario, the company should have over
RM84,000 in cash balance in the third year. Even with the worst-case sales
scenario, we reach a net worth break even at the end of Year 5. On a linear
projection, the entire financial debt will be retired by Year 7.

Figure 1.0 Sales, gross margin and net profit within 5 years

2.1 Vision, Missions and Objectives

Vision

Miss Moo Caf is a place for all age people to have a pleasure and chit chat time
serving with wonderful milk dessert and fresh milk drinks. Miss Moo Cafe
transcends a typical theme caf by putting real heart into customer service and
the quality of its food, so that its unique presentation and references to cute and
lovable cows are just part of the picture.
Missions
Miss Moo Caf will be an enlivening cafe, combining an eclectic
atmosphere with healthy and fresh milk dessert and milk beverages. The
mission is to have not only a great menu selection, but also efficient and
superior service-customer satisfaction is our paramount objective. Miss
Moo Caf will be the priority caf of choice for a kids, family, couples and
singles, young and old, male and female.
Employee welfare, participation, and training are equally important to our
success. Everyone is treated fairly and with the utmost respect. Our
employees will feel as a part family member to success Miss Moo Caf.
Our business concept combines variety of choices on milk desserts and
milk beverages, ambiance and a superior staff to create a sense of place
in order to our goal of overall value in the caf experience. We offer fair
profits for the owners and investors, and rewarding place to work for the
employees.
Objectives
Miss Moo Cafs objectives for the first three years of operation include:
Keeping food costs at less than 35% of revenue.
Improving our Gross Margin from 65.41% in Year 1 to 67.10 in Year 2.
These are attainable targets; our stretch is to attain 70.73% by Year 3.
Keeping employee labor cost between 37-39% of total sales.
Remaining a small, unique caf with eclectic food and service.
Averaging sales between RM1,200,000 -RM1,500,000 per year.
Promoting and expanding the Miss Moo Caf concept as a unique
destination caf.
Expanding our marketing and advertising in Perak and in the neighboring
suburbs to increase our customer base.
Achieving a profitable investment return for investors for Years 2-6.
3.1 Company Overview
Miss Moo Caf is a start-up caf and provide variety milk dessert and milk
beverage. Our company registration number is 7250411. It is a partnership

company. Miss Moo Caf has all necessary permits to operate, and has an up-todate record of inspections. These permits/licenses include business license,
resale license and health permits. One of the agencies, Ministry Of Health
regulates our business to protect the general public from our caf that practice
unsafe food handling and storage procedures.
The Design
Miss Moo caf is a unique caf in Perak, Malaysia. The caf features venue in
AEON Jusco Station 18, Pangkalan, Ipoh. The caf features 3 venues in one: A
Honey Lounge, Freelancer Bar, and Warming Dessert Time. This concept offers
customers variety, offering multiple milk desserts and milk beverages options
within a single establishment. The spatial and menu divisions will broaden our
appeal and provide our customers with a different experience on each visit. The
atmosphere caters to a young but mature adult crowd. Total space requirements
are 3000 square feet. In total, the cafe will provide seating for 60 patrons. We will
draw on our Advisory Board as part of the site selection and lease negotiation.
The Menu
Miss Moo Caf is focused on servicing Malaysias growing demand for a dessert
and beverages experience since our country is having warm weather. For lack of
a better term we are launching dessert and beverages using fresh milk product
which is unique among the cafs in Perak. This concept responds to Malaysias
need for selection and choice. Miss Moo Caf is providing variety desserts and
beverages choices especially using fresh milk from New Zealand as our main
ingredient. It is not only able to enjoy variety of desserts and beverages, milk
desserts and milk beverages are good for our health of all ages. We start-up the
caf in Perak area first as Perak demographics fit this concept perfectly.
The management
Miss Moo Caf will start out as an LLC corporation, owned by its founders,
Petrollina Engkuin and Yee Yun Huan will function as the General Manager and
Excecutive Chef, and Chua Pei Fen as Manager Partner.Miss Yee, Miss
Petrollina and Miss Chua have a long-standing professional relationship in the
business. Miss Chua is currently the Resident Manager at Bay View Resort. Miss
Petrollina is currently the PR Manager of Pacific Island Resort. Whereas Miss
Yee has extensive experience in resorts operations and management, as well as
computer database administration. Our management team has over 60 years
combined experience in food, restaurant and hotel, business management,
finance, and marketing arenas.

3.2 Legal Business Description

Cafe Location
AEON Jusco Station 18 LG2.75A, Pangkalan, Ipoh is the location selected for
the Miss Moo Caf concept. The outlook for the future of AEON Jusco is
exceptionally positive and the most progressive development area in the Ipoh city
since it is the latest and biggest shopping complex. AEON is nearby to residential
area. To encourage small business among entrepreneurs, there are sources of
small business grants available in Malaysia. Since Miss Moo Caf is a start-up
creativity caf, Miss Woo Caf able to secure a small business grant with
RM130,000.
The market has been carefully selected and tested for the necessary
demographics and retail traffic necessary to meet the goals laid down for
profitability. The busy AEON Jusco commercial/residential location has been
chosen based upon a successful demographic model and a traffic count of more
than 3,000 cars daily.
Cafe Design
According to the standard of the space provided by AEON Jusco, the total space
requirement is 3000 square feet. The caf will feature a comfortable and loveable
concept design. The lounge will allocate 22 seats, the central cafe area 26 seats
and the caf bar with 12 seats. In total, the cafe will provide seating for 60
patrons. Indeed, the cafe will decorate with cows as the theme.
Operating Criteria
The cafe will be located in AEON Jusco. The caf will service from morning to
evening during the week and provide supper time during weekends. Service will
be available during the following hours:
Monday Friday:

10 a.m. 10 p.m.

Saturday Sunday:

10 a.m. 12 a.m.

Start-up Summary
We are currently negotiating a caf space of 3000 sq. ft. in AEON Jusco and will
open Miss Moo Caf in January of next year 2013.

Our start-up costs are mostly expensed equipment, furniture, painting,

reconstruction, rent, start-up labor, and legal and consulting costs associated
with opening our caf. At the start of business, RM97,000 will be allocated for
business operations reserve. This is a solid start-up forecast based on our
market analysis and our knowledge and experience in the industry.
We will purchase the following RM73,311 worth of current assets during start-up:

Fixture and Lightning: RM32,250

Bar Equipment: RM26,183
Sound and Televisions: RM8,378
Office Equipment (2 computers, Fax, Printer, Safe): RM6,500

Long-term Assets in the amount of RM65,000 include all kitchen equipment.

We have budgeted for the services for a premier caf consultant familiar with the
Perak market. This is especially key during the site selection and start-up stage.
This company will have an integral role in validating the final cafe location and
personnel selection, and participate on the Miss Moo Caf Advisory Board.
The three owners are personally RM110,000 of capital, plus a RM300,000 SME
loan guaranty. In addition, we have obtained a RM130,000 from small business
grant. We are seeking RM200,000 of equity investment to fully fund Miss Moo
Cafs startup costs.

Figure 3.0 Start-up cost in expenses, assets, investment, loans

Start-up Expenses
PROJECT MANAGEMENT
Caf Consultant (4 months)
DESIGN
Architectural Design
Structural & Plumbing Design
Mechanical & Electrical Design
Graphic Design
Electrical & Structural Engineering
Fees
Design Consultants (Kitchen &
Interior )
Engineer & Architect Fees
CONSTRUCTION
Plumbing
HVAC (Air Return, Air Ducts, etc)
Electrical
Disposal & Demolition
Structural Construction (4 Months
General Labour)
Faade (Exterior Construction)
Plaster (Dry Wall)
Mill & Metal Work
Interior Finishes (2500-3000 sq.ft.)
Flooring
Fire Alarm System
Security & Phone System
EQUIPMENT
Stools, Chairs, Tables, Uniforms
Glassware, Flatware, Small ware (Bar
& Lounge)
Glassware, Flatware, Small ware &
Supplies (FOH)
Kitchen Equipment Freight Fees
FF&E Taxes (Taxes on Purchase)
OPERATIONAL
Capitalized Legal Fees (LCC, Investor
Agreements)
Software: Cafe/Inventory
Software: Cost Control
Impact, Tap & Permit Fees

RM
1,5911
2,195
1,368
2,155
1,185
2,592
9,119
7,040
33,244
19,250
7,964
4,122
52,099
3,092
2,061
8,244
14,853
14,622
3,092
4,615
38,025
3,298
8,298
2,389
7,988
7,080
5,500
6,000
3,115

Business License & Temp Certificate of

Occ.
Utilities, Disposal, Tax & Insurance
Security Deposits
(Phone/Elec/Gas/Water)
Initial Lease Deposits
Bank & Loan Closing Costs
Web Site Construction
Initial Marketing, Training & PR
Research & Development
Start-up Salary (Mngt & Chefs)
Recruiting (Staff)
Inspections
Initial Cleaning Services
Total Start-up Expenses
Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets
Total Requirements

1,615
9,275
6,250
6,250
6,250
5,800
19,850
4,050
58,050
13550
750
1,000
427,209
97,099
27,500
73,311
65,000
262,910
690,119

Table 3.0 Start-up requirement

Start-up expenses to fund

Start-up Assets to Fund
Total Funding Required
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
Liabilities and Capital
Liabilities
Current Borrowing
Long-term Liabilities

RM
427,209
262,910
690,119
165,811
97,099
49,881
146,980
312,791
0
300,000

Account Payable (Outstanding Bills)

Other Current Liabilities (Interest-free)
Total Liabilities
Capital
Planned Investment
Chua Pei Fen
Yee Yun Huan
Petrollina Engkuin
Investor 1
Investor 2
Investor 3
Investor 4
Investor 5
Small Business Grant
Additional Investment Requirement
Total Planned Investment
Loss at Start-up (Start-up Expenses)
Total Capital
Total Capital and Liabilities
Total Funding

0
0
300,000
40,000
40,000
30,000
40,000
40,000
40,000
40,000
40,000
130,000
0
440,000
(427,209)
12,791
312,791
740,000

Table 3.1 Start-up Funding

3.3 Strategic Alliances

Miss Moo Caf has developed important and profitable strategic alliances with
the following larger, more established business. For example, we have
developed marketing agreement with New Zealand Milk Malaysia. They provide
us with fresh low-fat milk powder and drink as our ingredient of our products (milk
desserts and milk beverages). The side by side positioning at retail, as well as
the ability to share wholesale sales leads with their established customer base
can help us penetrate the market more quickly. The risk in the relationship is that
their milk from New Zealand may back A1 milk safety. New Zealand Malaysia is
also one of our suppliers. In exchange for a blanket commitment to purchase
more than 80% of our supply of a specific raw material from them, they have
agreed to give us a preferential price.

Indeed, another type of strategic relationship that benefits the cafe is our
development joint venture with Coffee Bean, Perak division. We would never be
able to fund the research of the new cappuccino and latte (coffee mixed with
milk), but with access to their prior research in cappuccino and latte, we cut our
development time in half. By using some of their equipment who we not being
utilized fully, we were able to avoid the expense of major capital expenditures.
We have agreed to pay royalty of Coffee Bean to this development partner for
their role in this products ultimate success.
Indeed, Miss Moo Caf is having
delivery service. This gets many units of our product out in to the market place
and promotes our product to more customers.

7.1 Risk/Opportunity
In order to analyze the risk and opportunity that Miss Moo Caf would face,
SWOT analysis is applied.
Strengths

Recruitment, training, and recognition program

Miss Moo Caf can lead and control by the manager, Miss Chua who is
suitable enough and have knowledge and experience about the region.
Then she always have the greatest ability to find suitable adaptable
strategies. In additional, special training is provided to staff to be more
forward in greeting and helping the customers.
Companys marketing strategy and business strategy

Miss Moo Caf is located at AEON Jusco which is at high traffic, high
visible locations since it is the largest shopping complex in Ipoh city. The
consulting group has the expertise in site selection and lease negotiation.
In all, there are no guarantees with location, but we took a very objective
approach with our concept. Market Analyses is essential to gain a
competitive advantage for Miss Moo Caf. Low management risk due to
experienced team and the strong diversification of skills and expertise
which will ends with holistic results
Our financial plan is budgeted to support the worse-case business
scenario. The plan includes monthly break-even, the worst-case monthly
financial shortfall based on the ramp-up sales percentages outlined in
financial assumptions and budgeted operational shortfall in an operational
contingency budget that will utilize of the rises in need. High gross margin
on dessert and beverage products can be maximized by negotiating bulk
purchase agreement with wholesalers.
Intelligent of the leaders
Owners Chua Pei Fen, Yee Yun Huan and Petrollina Engkuin have a
combined 15 years of Hotel Management, Restaurant Management and
Business Management experience. The financial plan incorporates a
budget for a consulting group. Their services are budgeted for the
business start-up analysis, rollout, and on retainer for 4 months of
business operations. The selected firm has experience in business
management in their companies. A seasoned dessert chefs and beverage
bar tenders are having professional bakery and beverage skill.
Outstanding quality of input and output
Miss Moo Caf produces and serves only the fresh and good quality milk
desserts and beverages. Market conditions are favorable with Miss Moo
Caf offering special and unique concept of caf theme in an otherwise
static market. Miss Moo Caf sets up a new and creative brand of dessert
and beverages caf in Perak area. In addition, the sets provided in menu
are variety. The menu priced at a mid-tier level with no entre over RM20.
It does not deteriorate the quality of desserts and beverages with low
prices. It does not deteriorate the quality of desserts and beverages with
low prices offered.

Weaknesses

Target market characteristic

Defendability of concept as the cow milk products can be allergic for some
customers. It can be amended by introducing more different desserts and
beverages with goats milk. Besides that, product may be vulnerable to
weaken over time, which can be minimized through product innovation

and diversification. Moreover, there are unpredictable elements that may

affect the quality of milk and therefore the cost of milk for the milk desserts
and beverages.
Opportunity

Market potential
Miss Moo Caf capitalizes on diversity of menus and customer groups to
promote and market expansion through event delivery services. Miss Moo
caf is located in the shopping complex with crowd of people. Besides,
AEON Jusco is currently the biggest shopping centre in Perak and
situated in residential areas. Through the survey in AEON Jusco, Miss
Moo Caf is special among the cafes inside and has the potential to
compete with them in long term through our competitor analysis.
Changing of lifestyle
Malaysia is a rain tropical country. Hence, Miss Moo Caf provides the
alterative choices of the milk desserts and beverages in the warm
weather. Nowadays, people pursue for healthy lifestyle. High quality and
healthy desserts and beverages mean it is suitable to a very diverse target
customer groups. According to health specialist, milk provides the most
nutrition to consumers. It helps in growing of child and repairing tissues for
elders. In conjunction of our release of milk desserts and milk beverages,
Miss Moo Caf would attract many customers from different groups.
Customers can meet their friends, relax or work since Wifi is provided as
well.

Threat

Competition
The caf market is a very competitive sector and Miss Moo Caf must
compete against the likes of cafes such as Secret Recipe, Starbucks,
Sweet Corn Caf and Old Town Caf. A major competitor with
substantially greater financial, marketing and operating resources than
Miss Moo Caf could enter this market at any time and compete directly
against the company. Besides, the taste and response of customers to our
milk dessert and milk beverages are different. Nowadays, customers have
high demand on food quality and taste. Miss Moo Caf has to compete
with other cafes with introducing special menus. Moreover, an economic
recession reduces consumers consumption, eventually reduce revenue in
caf.
Culture environment aspects

The need for Miss Moo Caf to adapt its concept, business format, and
products to the culture of Perak comes to be a threat for Miss Moo Caf if
it failed to meet the culture of Perak.

8.1 Management Team

The strength of the management staff positions a success. A team that
embraces different disciplines, accomplished professionals with expertise in all
areas of the business, including marketing and restaurant management has
assembled. The company follows a typical hierarchical structure with the
management team discussed below as the co-owners, who are responsible for
all operations and management duties early on. Additional staffs will be needed
for food preparation and taking orders. Once the company has expanded
operations, a General Manager will be hired to handle day-to-day restaurant
management. This assists Miss Moo Caf to grow even further.
Our team has the following members to achieve our plan. Three ladies who
have a combined 15 years of experience; 5 years in marketing, 4 years in
product development, and 6 years in hotel management operations. Three of
them have considerable experience in the restaurant industry. The initial
management team will consist of the following three owners:

Chua Pei Fen is currently the Resident Manager at Bay View Resort. She
graduated from the University of Toronto, Canada with First Honor in
Hospitality and Tourism. She has background with backline operations
such as consistency control and recipe creation. She has 6 years
experience in starting and operating an upscale deli at the Hilton Hotel in
Kuala Lumpur.

Petrollina Engkuin is currently the PR Manager of Pacific Island Resort.

She has a double degree in business and applied finance from The
University of Tokyo. She has a broad based management background that
includes very large, four-star resorts to a smaller, hands-on resort. Her 5
years background will aid in restaurant relations, as well as handling
public relations and special events.

Yee Yun Huan graduated as Master of Business Administration from

London School of Economics. She is the General Manager at
Renaissance Hotel. She has extensive experience in resorts operations
and management, as well as computer database administration. She also
has 4 years experience as revenue auditor for restaurant, casino and hotel
operations.

It is estimated that a staff of 5 will be needed to maintain operations. 3 staffs

will be the waitpersons and 2 staffs will in charge of food and beverages
preparation. Additional number of staffs will be considered when it is needed.
Professional Support
Advisory Board
Stephan Chow of S&Malik: Corporate Attorney
Mandy Teo Khai Ling of Ernst & Young: Professional Accountant
Raikes Remmy of BIG Financial Services: Corporate Financial Consultant
Mohd. Zuhari bin Mohd. Khairul of Mahsya Hospitality Services:
Restaurant Consultant
Board of Directors
We have also secured the assistance and support of the following business and
industry experts to help in the decision making, strategizing, and opportunity
pouncing process.
Officers
and
Employees
[A], President

Name

Age

Experience/Qualifications

Jay Chou Jie Lun

34

Alex Hopper

38

[C], Vice President of Sales

Rex Zyn

30

[D], Vice
Finance

Aimiza Rashid

35

8 years experience in hotel

operations
and
management, graduated as
MBA in University of
Cambridge, UK. Currently,
he owns Mr. J Restaurant in
Taiwan.
15 years experience in
drafting marketing plan and
hold
a
position
in
MediaCorp as Marketing
Manager.
10 years experience in
product sales.
8 years experience as
financial analyst in Citibank,
Zurich Bank and Bank
Islam.
Graduated from University
of Technology, Sydney as
Professional
Chemical
Engineer.
7
years
experience in R&D. She is
currently
one
of
the
members of International
R&D Engineering Society.

[B], Vice
Marketing

President

President

Key

of

of

[E], Vice President of R & D

Thayshalia
Kuwarahen

A/P

34

[F], Vice
Operations

President

[G], Controller

of

Tan Chin Peng

30

5 years experience in
restaurant operations and
management. First Honor of
Hotel
Management
in
Berjaya Hospitality College.
Rashid Halim
28
Certificate of Mechanical
Technician. Able to manage
and repair small scale
machines.
Table 8.0 Board of directors for Miss Moo Caf

Ownership
The caf has authorized 5% shares of common stock, of which 100% are issued
and outstanding. The following persons or organizations are significant owners of
the company;
Name
Number of Shares Held
% Ownership
Owners
75,000
75%
Investors
15,000
15%
Management Team
5,000
5%
Seed Ventures
5,000
5%
Table 8.1 Ownership distribution of Miss Moo Caf

Personnel Plan
The personnel plan is believed in good proportion to the size of the caf and
projected revenues. The staff will include 5 full-time employees, who will work a
total of 280 manhours per week and generate an average monthly gross payroll
of RM 33,299 for the first year in business. The estimated gross annual payroll of
RM 399,588 (including Partner Salaries) is 37% of total sales.
Kitchen:
Cook that work directly with Petrollina Engkuin and Chua Pei Fen.
Restaurant Operations:
Yee Yun Huan will manage the Financial Management, Book Keeping.
Chua Pei Fen will be the Caf manager. She will be the primary
responsible for daily caf operations, taking care of wait persons and
bartender. She will also take care of service and make sure the caf is in
excellent shape.
Petrollina Engkuin will take lead as the Executive Chef working with the
Kitchen Chef.
Full-time waitpersons (3)
Skilled full-time bartender (1)

Administrative Salaries (Partner):

Yee Yun Huan (RM 108,000.00 per year)
Chua Pei Fen (RM 108,000.00 per year)
Petrollina Engkuin (RM 108,000.00 per year)

Year
RM

28,656.00

28,880.00

29,888.00

General
Manager
(Year 2+)
Partner
1
Partner
2

108,000.0
108,000.00

108,000.00

108,000.0
0

108,000.0
108,000.00

108,000.00
108,000.0

108,000.00

108,000.00

Partner
3

108,000.0
0

108,000.00

108,000.00

108,000.00

108,000.00

Waitperson 1

13,204.00

13,348.00

13,404.00

13,620.00

13,800.00

Waitperson 2

13,204.00

13,348.00

13,404.00

13,620.00

13,800.00

Waitperson 3

13,204.00

13,348.00

13,404.00

13,620.00

13,800.00

Cook 1

17,988.00

18,372.00

18,480.00

18,694.00

18,720.00

Bartender 1

17,988.00

18,372.00

18,480.00

18,694.00

18,720.00

Total People

Total Payroll

399,588.00

400,788.00

429,828.00

431,128.00

432,728.00

Table 8.2 Personnel plan of Miss Moo Caf

9.1 Capital Requirements

The total capital requirement to launch Miss Moo caf is RM 740,000 of which
RM 643,000 is allocated to start-up capital and RM 97,000 as business
operations cash reserve. We seek RM 430,000 of additional financing assistance
which will enable us to begin operations and support the expenses for
approximately 6 months until revenues have commenced. The initial stage of
funding will be used towards Equipment purchase including new kitchen
equipment, Design on dining room dcor, Construction and Operational Start-Up
expenses, in order to complete the development. Additionally, advertising
expenses and marketing collateral, as well as initial inventory, insurance, rent,
and utilities, will all need to be purchased in the first month of operations.
Remaining funds will be used as fund working capital.
Here is a breakdown of how the funds will be spent:
Project Cost
RM
Complete development
RM 129,000
Purchase equipment
RM 43,000
Market/Promote new product RM 86,000
line
Fund working capital
RM 172,000
Total
RM 430,000
Table 9.0 Breakdown of the funds/loan

%
30.0
10.0
20.0
40.0
100.0

Owners, Miss Chua Pei Fen, Miss Petrollina Engkuin and Miss Yee Yun Huan
are investing RM 110,000 in personal capital. Private investors, who will be part
owners with a non-managerial interest in the business, will contribute the
remaining RM 200,000.
Owners commitment is to take personal accountability for all financial debt.
Necessary precautions have been made to ensure the business is fully
capitalized, and have addressed all financial shortfalls to ensure a successful
business start-up. Under a realistic scenario, the caf should have over
RM 84,000 in cash balance in third year. Even with the worst-case sales
scenario, Net Worth break even will be reached at the end of Year 5. On a linear
projection, the entire financial debt will be retired by Year 7.

Figure 9.0 Projected sales, gross margin and net profit in 5 years.

9-2 Exit/Payback Strategy

A venture capitalist will generally want to liquidate their investment in a
reasonably short period of time, while a lending institution may want a longerterm relationship. Based on the sale projections which have been done, Miss
Moo caf could reach an exit for this loan within seven years by reaching the sale
target of the caf and in the form of dividend of excess profits.
Payback strategy
While the business is still operating, expansion has been identified as one of the
largest business goal. However, multiple financial goals are also set to grow the
success of the Miss Moo Caf, and the profit return is compounded for Investors.
1. Expansion (Option 1): Based on projections, the business will be able to
capture market share by the end of the first year. In addition when Year 2
begins to bring an increase sale and profit margin, the addition of a full-time
General Manager could be sustained. By the second quarter of Year 2, the
owners will look to launch a second caf concept. This will be another
unique caf with strong growth potential. Expansion will be considered with
the Financial backers and Investor partners.

2. Expansion (Option 2): Throughout the business plan, it has been

identified that by expanding Miss Moo Caf to a larger venue, with greater
customer capacity and revenue potential, Miss Moo Caf would be more
successful. Hence, the site selection and lease negotiation is important in
order to have the opportunity to expand the caf as a logical growth and
profit plan.

3. Private Sale: Caf concept is a business of making money. At the end of

Year 3, Miss Moo Caf is observed to be able meeting 80.4% of its
optimum sales potential with the current seating and space allocation. At
this stage, the business debt is reduced, profit margins are increasing and
Miss Moo caf has established market share. Private sale of the majority
interest via either Leveraged Buyout or a larger Caf consortium will be
considered. In both cases, healthy profits will be delivered to the Investors
and Financial backers. Sales and profit margin will be based on the
restaurant valuation in Year 3.

4. Financial Solvency: The financial projections indicate that exit will be

achievable over 3 years for the operating capital line of credit. Under a
realistic scenario the caf should have over RM 84,000 in cash in the bank
after income taxes the second year. The entire financial debt would be
retired by Year 7.
Milestones
Miss Moo Caf has identified four milestones that are clear in terms of the goals,
and are achievable:
1. Business plan completion: The final version will be accomplished within
the first two months.
2. RM 50, 000 in revenue. A date of expectancy has been established and
it will be useful to gauge performance on whether the revenue is realized
on schedule.
3. Profitability. This is a very important indication and it is forecasted to
occur within two years.
4. Payback of entrepreneurship loan. Based on the projections, Miss Moo
caf could reach an exit for this loan within seven years (by 2019).

Figure 9.1 Four important milestones to show the period of payback of loan can be
achieved within seven years.

Exit strategy
Ideally, Miss Moo Caf will expand to 5 units in the next 10 years. At that time,
there might occur the possibility of a buyout by a larger caf concern or actively
seek to sell to a new owner. Although the owners of Miss Moo Caf are
committed to their concept and its viability and no one attempts a business
anticipating failure, sometimes ventures do not fulfill their promise.
In the event that Miss Moo Caf cannot achieve profitability and retire the
encumbrances, the first attempt will be selling the operation and the proceeds
are used to clear all outstanding balances. If the operation could not be sold for
sufficient proceeds, any further outstanding balances will be borne by the
investors on a weighted percentage basis of the total amounts due.

10.1 Financial Plan

Miss Moo Caf financial plan has been approached as below:
The First Year projections anticipates a below average sales volume, below
average seat turn, and above average food/beverage cost. This position will
ensure the business runs in sufficient financial planning in order to accommodate
a reasonable ramp-up period, and business success, also ensuring that the
venture does not under-capitalized.
Financial Pro Forma
In addition to the RM 110,000 of owner investment, Miss Moo Caf is seeking
RM 430,000 in long-term loans and RM 200,000 in investment for renovations,
furniture, kitchen equipment, food & caf supplies, legal fees, working capital,
marketing and personnel.
This Financial Plan will include:

Assumptions
Sales Forecast (Please Refer to the Sales Strategy)
Break Even Analysis
Profit and Loss Statement
Cash Flow Statement
Balance Sheet

Investment Opportunities
The Miss Moo Caf Investment Program allocates equity position of 20% for a
total of RM 200,000 in investor capital. The Investment structure is as follows:
Total Investor Funding Opportunity:

RM 200,000

Minimum Investment Amount

RM 15,000

Investment Term (Investor Selection)

3-5 Years

Total Equity Offering (1% per RM 15,000 Investment)

20% Max

Starting Year 2
Silver: Projected Annual IRR on Investment of
RM 15,000 RM 49,000

10%

Gold: Projected Annual IRR on Investment of

RM 50,000 RM 99,000
Platinum: Projected Annual IRR on Investment of
RM 100,000 or more

11%
12%+
Residuals

Table 10.0 Miss Moo Caf investment program

Investor Payback Program

Each Investor will receive equity shares as a part owner, with a non-managerial
interest in the caf. Based on the financial estimation, the annual IRR can be
achieved at maximum 12%. Over and above the interest and principal
repayment, Investors contributing RM 100,000 or more will receive residuals for
the life of the business as a bonus incentive.
The playback structure will begin paying dividend every quarter, starting in Year 2
of business operations. Investors will receive quarterly interest and annual
principal reduction payments over the full term of the investment. Payback to
Financial and Private Investors will take priority over any profit shares to the
owners.

10.2 Assumptions
The financial plan depends on important assumptions, which are reflected in the
financial statement below. The attached projections assume the following;
Economy
Slow Economic Recovery. The economy is in a slow-growth pace, and just
recovering from an economic recession.
Business Growth
Modest growth is assumed over the coming years. Annual Growth Rate
Percentage is determined. The financials account for the following growth
projections:
Year 2: 6%
Year 3: 5%
Year 4: 4%
Year 5: 4%
Weekly Sales Variance
Weekends will typically be the best sales for the week. The sales volume for all
other days is represented as a percentage relative to Saturday and Sunday.
Therefore, the weekly sales will vary as follows:

Monday: 55%
Tuesday: 60%
Wednesday: 75%
Thursday: 95%
Friday: 90%
Saturday and Sunday: 100%

Seasonal Sales Variance

In Malaysia, June, November and December are the holiday seasons, hence it is
assumed to have the most productive sales period, while other months tend to
have lower sales revenues. This trend is reflected in the financials through a
seasonal variance as below:
January: 85%
February: 80%
March: 75%
April: 90%

May: 90%
June: 100%
July: 95%
August: 80%
September: 85%
October: 80%
November: 100%
December: 100%

Industry & Start-Up

Fiscal Year-1 Ramp-Up
A longer ramp-up stage for restaurants over other retail/service businesses has
been confirmed through broad experience of owners. Annual Sales Growth is
based on attaining the following seating capacity percentage per dining period.
Year 1: After-Hours=57%, Tea Time=72%, Supper=85%
Year 2: After-Hours=67%, Tea Time=80%, Supper=88% (Implied
wait period)
Year 3: After-Hours=80%, Tea Time=89%, Supper=100% (Implied
wait period)
Six-Month Start-Up Stage
As a new caf entry to the Midtown market, the ramp-up in customer draw is
expected to extend over 6 months. This is reflected in a higher than average
monthly sales variance shown as follows (Worst-case/ Expected case):

Month 1: 25% / 41%

Month 2: 33% / 55%
Month 3: 50% / 69%
Month 4: 65% / 78%
Month 5: 79% / 88%
Month 6: 85% / 92%

Market Analysis findings are static

There are no unforeseen changes in findings outlined in the Market Analysis.
Pricing & Cost Control

Competitive Pricing Model is assumed. Revenue calculations are based upon

competitive price comparisons and established menu values in the current
marketplace.
Daily average for tea time spending is RM 10.50 per person, supper at RM 7.50
per person; and RM 5.50 per person for After-Hours dining (All check totals
include Food and Beverages). Seat Turn averages are modestly estimated at:
Year 1: After-Hours = 0.6, Lunch = 0.9, Dinner = 1.0
Year 2: After-Hours = 0.7, Lunch = 1.0, Dinner = 1.0
Year 3: After-Hours = 1.0, Lunch = 1.0, Dinner = 1.15

Cost Control.
Cost of goods sold have been calculated as a percentage of sales and will be
monitored on a daily basis in order to keep Cost of Food within the range of 25 30% and Cost of Beverages below 9%. With a focus on Cost Control, it can be
assume that 6 months is the optimum period to fine tune the caf operations and
manage the costs within the defined tolerance range.

Inventory turnover and Accounts Payable

Accounts receivable turnover is calculated to be 0 days, as payment is rendered
with service. Inventory is turned on a 7 day cycle as inventory is used daily within
all categories, and accounts payable are projected to be 30 days.

General Assumptions
Year 1

Year 2

Year 3

Year 4

Year 5

Plan Month

Current Interest Rate

6.00%

6.00%

6.00%

6.00%

6.00%

Long-term Interest Rate

7.00%

7.00%

7.00%

7.00%

7.00%

30.00%

30.00%

30.00%

30.00%

30.00
%

Tax Rate
Other

Table 10.1 The general assumptions of constant financial rates for five years

10.3 Financial Statements

Profit and Loss Statement
The most important assumption in the Projected Profit and Loss statement is the
gross margin. Once the start-up phase of the business is at exit and move into
the expected annual sales forecast, an adjustment increase is showed in Year 2.
This transition indicates that Miss Moo Caf manages to go through its start-up
period and starts to gain efficiency and customer loyalty. In short, Miss Moo Caf
will develop its customer base and reputation, results in a positive rapid growth
after second years of business. Month-by-month assumptions for Profit and Loss
are included in the appendices.

Figure 10.0 Projected profit and loss gained in the first 12 months.

Figure 10.1 Projected profit and loss in five years.

Figure 10.2 Projected gross margin in the first 12 months.

Figure 10.3 Projected gross margin in five years.

Year 1

Year 2

Year 3

Year 4

Year 5

Sales

1,073,769.00

1,211,088.00

1,279,204.00

1,341,260.00

1,406,670.00

Direct Cost
of Sales

Other

Total Cost of
Sales

Gross
Margin

Gross
Margin %

65.41%

67.10%

68.19%

69.04%

69.89%

371,416.0

398,407.0

371,416.0

406,976.0

398,407.0
0

702,353.0

415,276.0

406,976.0
0

812,681.0

423,597.0

415,276.0
0

872,228.0

423,597.0
0

925,984.0

983,072.0

Expenses
399,588.0
Payroll
Marketing/P
romotion
Depreciation

400,788.0
0

18,656.0
0

22,000.0
0

6,500.0

429,828.0
0
25,000.0
0

6,500.0

431,128.0
0
15,000.0
0

6,500.0

432,728.0
0
15,000.0
0

6,500.0

6,500.0

0
Leased
Equipment

Accounting/
Payroll
Processing

Legal
Retainer
Fees

Business
Licenses &
Permits

Credit Card
Expense

0
12,000.0

12,000.0
0

6,600.0

6,000.0
18,576.0

Music
&
Entertainme
nt

Training
/
Employee
Retention
Programs

Repairs
&
Maintenanc
e

Utility
Services
(Gas/Electri
c/Water/Sew
er)

Telephone/C
ommunicati
on Expense

Insurance:
Fire/Theft/L
iability/Liqu
or/Product
Restaurant

3,744.0

24,996.0

1,800.0

20,400.
00
75,000.

1,800.0

22,705.

1,800.0
0

23,613.
00

79,568.

30,091.0
0

00
77,250.

28,933.0

1,800.0

21,624.

9,000.0
0

00

9,000.0

27,821.0

1,800.0

6,008.0
0

6,008.0

9,000.0

26,496.0

3,744.0
0

3,744.0

6,008.0

9,000.0

1,200.0
0

23,210.0
0

1,200.0

3,744.0

5,008.0

22,131.0

6,000.0
0

0
1,200.0

3,744.0

9,000.0

6,000.0

21,107.0

1,200.0

2,400.0
0

2,400.0

6,000.0

19,983.0

6,600.0
0

6,600.0

2,400.0

6,000.0

12,000.0
0

12,000.0

6,600.0

2,400.0

12,000.0

6,600.0

2,400.0

1,200.0
Bank Fees

24,558.
00

81,955.

84,413.

Occupancy
Cost
(Lease)

00

00

00

00

00

Payroll
Taxes
(FICA/FUTA
/SUTA)
&
Employee
Benefits

Exterminato
r/Trash
Removal

Dishware/U
niforms/Clea
ning
Supplies/De
cor

4,800.0

4,800.0
0

11,760.0

Printing/Pap
er/Postage/
Subscription
s

Facility
(Exterior
Cleaning/Gr
ease
Trap/Hood/
Windows,etc
.)

R&D Meals

General
Business
Comps

12,466.0

12,400.0
2,124.0

4,200.0

23,125.0

23,125.0
0

2,124.0
0

4,200.0
0

2,400.0
0

0
2,124.0

4,200.0
0

2,400.0

23,125.0

2,124.0

3,640.0
0

3,640.0

2,400.0

22,850.0
0

9,500.0
0

14,157.0
0

9,500.0

3,640.0

2,400.0
0

13,612.0

4,800.0
0

9,500.0

3,640.0

2,200.0

Other
Expenses
(ComAreaM
aint, etc.)

13,089.0

4,800.0
0

9,500.0

3,333.0

9,156.0

Owner
Comps

4,800.0

2,124.0
0

4,200.0
0

4,200.0
0

Total
Operating
Expenses

656,433.0
0

684,372.0
0

724,158.0
0

721,414.0
0

729,198.0
0

Profit Before
Interest and
Taxes

EBITDA

Interest
Expense

Taxes
Incurred

Net Profit

Net
Profit/Sales

1.74%

6.49%

7.41%

10.19%

12.34%

45,920.0

128,309.0
0

52,420.0

148,070.0
0

134,809.0
0

19,189.0

154,570.0

15,984.0

8,020.0

211,071.0

12,640.0

33,698.0

9,296.0

40,629.0

78,628.0

260,375.0
0

253,875.0
0

0
18,712.0

204,571.0

5,952.0
0

58,582.0
0

94,801.0

74,377.0
0

136,692.0

173,546.0

* All values are calculated in Ringgit Malaysia

(RM)

Table 10.2 Pro forma profit and loss statement

Sales will increase with the introduction of the new products, which in this
business plan are the food and beverages made of fresh milk dairy products.
Introduction of these products have been made roughly through a well-planned
schedule, including advertisements and promotions. However, the complete
menu will only be introduced to the public on the first day of caf opening. The
expected sales would be RM 20,000 per month within six months of introduction.
Then, the revenues will increase gradually for every month.
Decrease on the price of food and beverages sold will be considered after one
year or when the profit has been generated. Cost of goods sold will decrease 1015% if the shop gets good comments from the customers continuously. However,
gross profit will remain static as new introductions will be at higher margins, while
the margins of older lines are expected to erode. Selling and administration
expense will increase in absolute dollars, but decrease as a percentage because
while expense such as payroll is increasing, the sales will be growing faster. On
the other hand, Research and Development, which will appear as a high
percentage of sales early, will be reduced as a percentage over time. Our head
count will increase after funding to Board of Directors, which will include a VP-

Sales, paid on commission, VP-R&D, VP Finance and VP Operations, paid on

cash with proper percentage.
From the table above, both total operating expenses and total cost of sales
increase every year. When the business runs in a stable pace, expenses on
payroll and utilities will start to increase. However, when the increase in total cost
of sales is much more significant, net profit generated will growing steadily. An
increase on ratio of net profit/sales could be observed clearly, which indicates the
expanded size of market. By opening a caf which focuses on fresh milk and
dairy products will easily gain market acceptance from every group of ages,
regardless children, teenagers, adults and elders. In addition, competitive
pressures will occur when new cafs with same/different themes was opened in
the same neighborhood. Hence, more promotions or more renovations or more
variety of menus are needed to sustain the old customers and attract new
customers. These expenses should also be considered in the profit and loss
statement.
Break-even Analysis
For the First Year Break-Even Analysis, an average running fixed costs of RM
60,230 per month which includes full payroll, rent, and utilities, and an estimation
of other running costs, are calculated. With direct cost of goods (inventory, in this
plan) at 35% of sales, the monthly break-even point will fall on RM 83,630. The
break-even point will be surpassed in October of the first year. When the owners
could exit the start-up phase of the business and focus on cost control, the Cost
of Goods Sold (COGS) is driven down, dropping the break-even value, and
increasing the Gross Margin.

Figure 10.4 Breakeven Analysis for the first year

Break-even Analysis
Monthly Revenue Break-even

RM83,6
30.00

Assumptions:
Average Percent Variable Cost

35%

Estimated Monthly Fixed Cost

5RM4,7
03.00

Cash Flow Statement

The cash flow depends on assumptions for inventory turnover and payment
days. There are no sales on credit, so the cash flow does not track accounts
receivable. The projected same-day collection is critical, and is reasonable and
customary in the restaurant industry. There is no expectation to need any
additional financial support, even when the shop reaches the less profitable
months, as the downturns are incorporated into the monthly revenue variance
figures. Month-by-month assumptions for projected cash flow are included in the
appendices.

Figure 10.5 Net cash flow and cash balance for the first 12 months

Year 1

Year 2

Year 3

Year 4

Year 5

Cash Sales

1,073,769.00

1,211,088.00

1,279,204.00

1,341,260.00

1,406,670.00

Subtotal Cash
from
Operations

1,073,769.00

1,211,088.00

1,279,204.00

1,341,260.00

1,406,670.00

Sales
Tax,
VAT, HST/GST
Received

New Current
Borrowing

Cash
Received
Cash
from
Operations

Additional
Cash
Received

New
Other
Liabilities

(interest-free)

New
Longterm Liabilities

Sales of Other
Current Assets

Sales of Longterm Assets

New
Investment
Received

Subtotal Cash
Received

1,073,769.00

1,211,088.00

1,279,204.00

1,341,260.00

1,406,670.00

Expenditures

Year 1

Year 2

Year 3

Year 4

Year 5

Expenditures
from
Operations
Cash
Spending

399,588.0
0

400,788.0
0

601,114.0

429,828.0
0

724,989.0

431,128.0
0

745,324.0

432,728.0
0

765,976.0

792,442.0

Bill Payments

Subtotal Spent
on Operations

1,000,702.00

1,125,777.00

1,175,152.00

1,197,104.00

1,225,170.00

Sales
Tax,
VAT, HST/GST
Paid Out

Principal
Repayment of
Current
Borrowing

Other
Liabilities
Principal
Repayment

Additional
Cash Spent

Long-term
Liabilities
Principal

47,772.0
0

47,772.0
0

47,772.0
0

47,772.0
0

47,772.0
0

Repayment
Purchase
Other Current
Assets

Purchase
Long-term
Assets

Dividends

Subtotal Cash
Spent

1,048,474.00

1,193,549.00

1,232,924.00

1,254,876.00

1,287,942.00

Net Cash Flow

20,000.0

25,295.0

17,539.0
0

172,276.0
Cash Balance

10,000.0

46,280.0
0

189,815.0
0

10,000.0

86,384.0
0

236,095.0
0

15,000.0

118,727.0
0

322,479.0
0

441,206.0
0

* All values are calculated in Ringgit Malaysia (RM)

Table 10.3 Pro forma cash flow statement

It can be assumed that the suppliers will be willing to grant us terms of six
months until we reach monthly revenues of approximately RM 83,630, which is
the monthly revenue break-even point. This assumption is valid after average
percent variable cost is fixed at 35% and estimated monthly fixed cost has been
determined in the previous profit and loss statement. At that time, the terms will
be stretched to roughly 180 days. Furthermore, another assumption is made
whereby the billings could be collected within 365 days because of special
programs have been done with large number of customers, factoring
arrangement, credit card and COD sales.
On the other hand, by assuming a one-year estimation, the first part of the loan
will be used as investment and it is made in January and the balance in
December. The break even could be reached by the end of October, with the
expected sales to be at RM 83,630 level by that date.

Balance Sheet Statement

The projected Balance Sheet is quite solid. Difficulty meeting the debt obligations
is not anticipated based on achieving the specific goals outlined in this plan. On a
linear projection, Miss Moo Caf has a positive Net Worth beginning in Year 3.
Year 1

Year 2

Year 3

Year 4

Year 5

Assets
Current Assets
172,276.0
Cash

322,479.0

0
37,839.0

Inventory

Other Current
Assets

Total
Current
Assets

189,815.00

236,095.00

39,175.0

38,109.0

441,206.0
0

38,843.0
0

73,311.0

39,608.
00

73,311.0
73,311.00

73,311.00

302,300.00

347,514.00

283,426.0

73,311.
00

434,633.0

554,125.0
0

Long-term
Assets
Long-term
Assets

65,000.0

Accumulated
Depreciation

Total Long-term
Assets

Total Assets

65,000.0
0

6,500.0

65,000.0
0

13,000.0
0

58,500.0

19,500.0
0

52,000.0
0

65,000.0
0
26,000.0
0

45,500.0
0

32,500.
00

39,000.0
0

341,926.0
Liabilities
Capital

65,000.
00

32,500.
00

473,633.0
354,300.00

393,014.00

586,625.0

Year 4

Year 5

and
Year 1

Year 2

Year 3

Current
Liabilities
Accounts
Payable

58,194.0

59,713.0

61,398.0

63,097.0

65,315.

00

Current
Borrowing

Other Current
Liabilities

Subtotal Current
Liabilities

Long-term
Liabilities

Total Liabilities

Paid-in Capital

Retained
Earnings

58,194.0

59,713.0
0

61,398.0
0

63,097.0
0

252,228.0
156,684.00

264,169.00

218,082.00

440,000.00

440,000.00

(428,496.00)

(359,869.00)

0)

78,628.0

94,801.0

(427,209.00

31,504.0
Total Liabilities
and Capital

Net Worth

440,000.0
0

(275,068.0

126,455.0
0

440,000.0

18,712.0

Total Capital

61,140.
00

172,009.0

440,000.0

65,315.
00

108,912.0
204,456.00

310,422.0

Earnings

136,692.0
0

90,131.0
0

(153,375.0
0)
173,546.0
0

301,625.0
174,932.00

341,926.0

460,171.0
0

473,633.0
354,300.00

31,504.0

393,014.00

174,932.00

90,131.0
0

0
301,625.0

* All values are calculated in Ringgit Malaysia

(RM)

Table 10.4 Pro forma balance sheet statement

Balance Sheet Summary in Year 1

Assets: RM 341,926.00

586,625.0
460,171.0
0

Liabilities: RM 310,422.00
Book Value: RM 31,504.00
Miss Moo Cafs balance sheet will show RM 341,926.00 (Year 1) to RM
586,625.00 (Year 5) in assets, attributed mainly to equipment, leasehold
improvements and cash. Liabilities will be RM 310,422.00 upon launch but
gradually decrease to RM 126,455.00 at the end of Year 5. Equity will continue to
increase as retained earnings stay positive and debt is paid down. The value of
other current assets remains the same throughout the five years and other
accounts payable has a slight increase every year. A decrease in long term
liabilities and increasing earnings will result in an increase in net worth. Hence,
the net worth of Miss Moo Caf will reach RM 460,171.00 at the end of year 5.
In five years an exit is provided, which it is expected to be in the form of sale to a
competitor, initial public offering, distribution of profits or perhaps joint venture
with caf chain. Expectation is made whereby this could be achieved in 60
months / 5 years].

10.4 Conclusion
Based on the projections have been done throughout the business plan, it cannot
be denied that a loan to Miss Moo Caf is a sound business investment. In order
to proceed, a loan of RM 430,000 is requested and it would be grateful if the
business plan is approved as early as possible by May 10. Once the approval
has been made, the management team of Miss Moo Caf will start to prepare for
the caf opening in the early January 2013. We promise that we will reach the
targets which have been set up throughout this business plan and generate
payback to financial and private investors.

11.1 Exhibits
Brochures