Sapphire Enterprise Bike Rental Services

Sapphire Bike Rental: Business Plan
Executive Summary
Sapphire Enterprise has come out with an idea to do bike rental service in within the campus
of UiTM Shah Alam as we have seen there is an opportunity in this business service since the
students in the university are having issues where they have to walk too far for classes. This is
because there have been any internal transportation service provided by university within the
campus such as the bus shuttle service. Besides that, demands for the usage of the bicycle for
exercise and recreation which was provided by the university are high, therefore; the problem arises
when the number of bicycles offered are insufficient for the students. This is where we come in the
picture.
Our initial plan for our business is to create a new form of public transportation which
would be applicable to universities all around Malaysia which is eco-friendly, safe, financially
sustainable to operate and affordable for the users. We, partners of the business, are devoted to
make this business the first bike rental service for students made available at universities located
throughout Malaysia.
As a starter for our project, an estimated project implementation costs is set at RM 99,
335.00. We, consisting of 5 partners, will contribute RM 10, 000.00 each which in total comes to a
total capital contribution of RM 50, 000.00. A bank loan will also be applied for a total of RM 40,
000.00 from Bank Rakyat to support our expenses for the project. Therefore, our total source of
financing comes to an estimated of RM90, 000.00 which will be used to cover the estimated project
implementation costs.
The sales for the first year are estimated to be RM 231,600.00 with an estimated operating
costs of RM 128, 796.00. Therefore, the profit generated after tax will be RM 100,404.00. The sales
for the second year is expected to increase at an estimated 19% and an increase of 20% at the third
year.
The purpose of preparing this business plan is to evaluate the project viability and the
growth potential of the business, to be used for loan applications from relevant financial institutions,
to act as a guideline for the management of the proposed business and to allocate business resources
effectively and efficiently.
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1.0 Introduction
Sapphire Bike Rental Service is a partnership business consisting of 5 partners, located
in Shah Alam, Selangor. Sapphire business service is to carry out bicycle rental service for the
students of UiTM, Shah Alam. The office will be located in the UiTM Shah Alam campus
where it will be easier for the business to be managed and to be monitored.
The idea of providing the bike rental service for the UiTM students was adapted from a
bike sharing system service that was established and implemented at the streets of New York
City, called the Citi Bike. Citi Bike is New York Citys bike share system and the largest in its
nation. Citi Bike launched in May 2013 and has become an essential part of their transportation
network. Like any other bike sharing system as Citi Bike, Sapphire plans to provide the same
service as Citi Bike to the students of UiTM Shah Alam.
This service is intended to solve and to provide the students, staffs and lecturers of
UiTM with the mode of transportation for them to get around the campus either to classes,
lecture halls even to the library and the football fields. This is because the blocks are quite of a
distance between each other and students and lecturers are tired and sometimes lazy to walk to
get their desired destination around the campus. Besides that, this service can also reduce the
usage of cars and motorcycles around the campus which can sometimes be a bit dangerous for
the students. This is also could lead to the reduction of pollutions that can save the environment.
Sapphire Bike Rental Service is an innovative transportation program which is suitable

for all riders ranging from students, lecturers and staffs of UiTM. This service has also been
made available for all at all times. This is service is also ideal for short distance point-to-point
trips providing riders access to the bicycles at any self-service bike station as a use and return
the bikes at the stations provided within the service area.
This Bike Sharing service is a service which is fun, efficient and affordable; and not to
mention healthy and also good for the environment. As for Sapphire, like any other bike share
systems available, it consists of a fleet of specially designed, sturdy and durable bikes that are
locked into a network of docking stations throughout the campus with a Touch N Go system.
The bikes can be rented from and returned to any pit stops made available in the campus. The
bicycles are also made and designed for easy riding along the campus and its built to be
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comfortable for any type of rider, regardless of the height, weight or riding ability of the riders.
The bicycles are built with adjustable seats, sturdy frame, handlebars and shifters, responsive
brakes, lights and reflectors, a basket, chain guards and fenders along with durable tires (refer to
appendix).
2.0 Purpose
A small survey or research was conducted at the campus of UiTM Shah Alam where we
have been getting feedbacks from the students, staffs and lecturers that it was difficult for them
to get to their destination as there were no mode of transportation made available by the
university.
This business plan is therefore commissioned with the following goals in mind:
1) Creating a recommendation on the optimal form of the bike sharing management structure
and agency.
2) Providing strategies for approaching potential sponsors developed in collaboration with
Touch N Go and UiTM Shah Alam.
3) Producing a business plan with the following element:
a. A complete pro-forma business plan with the revenue gained, an estimated staffing
costs and structure recommendations.
b. A detailed schedule for the implementation of the business.
c. A 3-year estimated costs for the operating and capital expenditures.
This business plan has also been created for the partners of the company to provide
them with the capability of the business and the potential growth of the business in the market.
The growth of the business can be measured based on the amount of capital contributed, the
estimated operating expenses incurred along with the sales forecast generated.
This business plan also comes with a detailed projection of the financial plan which is
crucial for the partners when applying for loans or financial facilities from relevant financial
institutions.
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3.0 Company Background
NAME OF THE
Sapphire Enterprise
COMPANY
BUSINESS UiTM Shah Alam,
40450 Shah Alam,
ADDRESS
Selangor, Malaysia.
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TELEPHONE 07-526 7447

NUMBER
FORM OF Partnership
BUSINESS
TYPE OF SERVICE Bike Rental Services
DATE OF 1st of January, 2017

COMMENCEMEN
T
DATE OF 31st of December, 2016
REGISTRATION
REGISTRATION 168770-X
NUMBER
NAME OF BANK MAYBANK
INSTITUTION
BANK ACCOUNT 4-99856-0-1544-7
NUMBER
4.0 Partners Background
Name Muhammad Zariq Bin

Zainuddin
Position General Manager
Identity Card No. 930323-14-6671
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Telephone 018-267 6752

Number
Address No. 26, Jalan Kota Harmoni 27/97,

Kota Harmoni, Persiaran Gombak,
40400, Shah Alam
Selangor Darul Ehsan, Malaysia
E-Mail muhdzariq@gmail.com
Date of Birth 23rd March, 1993
Gender Male
Age 23
Marital Status Single
Academic Bachelors Degree in Business Management

Qualification
Skills Leadership and Communication
Working General Manager for AceSolutions (M) Sdn. Bhd.

2013-2015
Experience
Capital RM 10,000.00
Contribution
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Name Siva Chander A/L Rajendran
Position Marketing Manager

Number
Address No. 10A, Block 3J,

Jalan Iklim 25/83,
45123, Taman Sri Muda,
Sri Muda, Shah Alam,
Selangor, Malaysia.
E-Mail Chander9204@gmail.com
Date of Birth 2nd April 1992
Gender Male
Age 24

Qualification
Skills Teamwork and leadership
Working None
Experience
Contribution
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Name Mugheshwaran A/L Ganason
Position Operational Manager

Number
Address No. 2A, Taman Bukit Mewah Fasa 9,

9/6 Jalan Bukit Mewah,
43000 Kajang,
Selangor, Malaysia
E-Mail mugheshwaran@gmail.com
Date of Birth 5th September, 1994
Gender Male
Age 22

Qualification
Skills Calculating and Teamwork
Working Factory worker

Experience
Contribution
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Name Sanam Kaur
Position Financial Manager

Number
Address No. 3, Taman Melur,

Jalan Taman Melur 2/3,
43000 Kajang,
Selangor, Malaysia.
E-Mail Sanambehl8@gmail.com
Date of Birth 8th October, 1993
Gender Female
Age 23

Qualification
Skills Critical Thinking and Operational Planning
Working None
Experience
Contribution
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Name Teoh Chun Hoong
Position Maintenance Manager

Number
Address No. 16, Jalan Kajang Mulia 2,

Taman Kajang Mulia,
43000, Kajang,
Selangor, Malaysia
E-Mail chunhoong9878@gmail.com
Date of Birth 1st February, 1995
Gender Male
Age 21
Academic Bachelors Degree in Mechanical Engineering

Qualification
Skills Maintenance and Technician
Working None
Experience
Contribution
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5.0 Business Site
Sapphire Enterprise
Universiti Teknologi Mara (UiTM),
Shah Alam,
40450, Selangor, Malaysia.
This is management office site of Sapphire Enterprise. The office situated and located in
the campus itself. The reason to this is to ease the management of the business with easy
supervision of all the pit stops and the bicycles provided. Since this business and service is still
new to the people, the management staffs and the maintenance staffs are needed to be in the area
of the pit stops made for supervision of the service if there were any issues so that actions can
be taken immediately.
The operations of Sapphire Bike Rental will be taking place in UiTM Shah Alam. Our
service will be provided for the students, staffs and lecturers at 5 bicycle pit stops strategically
located around the UiTM campus. These bicycles pit stops will be built and placed at the UiTM
Admin Block, the Non-Residence Area, at the Intan Food Court, the Ilmuwan Block and not
forgetting, the Sport Centre. There areas chosen, we believe to be the so called hotspots for
students where will be expecting a high usage of our bicycles.
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6.0 Marketing Plan

6.1 Service Description
6.1.1 Services
Sapphire bike rental is an innovative transportation program, whereby subscribers

have access to bicycles at all times. Bike share is ideal for short distance point-to-
point trips providing subscribers access to bicycles at any self-serve bike station to
use and return to any bike station within the service area.
6.1.2 Services Description
The only and main service that we provide is bike rental. This rental service is
different from other bike rental service that already in the market. The difference is
that the operation of the service will be solely done by the system and no on-site
labour.
6.2 Target Market

The target market that Sapphire Bike Rental Services will be targeting at consists of
three of the following groups;
6.2.1 UiTM Shah Alam Students
The distance between the college and class is quite far and it takes about 10-20
minutes for them to reach the class especially for those who are from the residential
blocks which can be a bit of a distance. Besides that, we are also targeting students to
use our service instead of a mode of transportation for them to get to their desired
destinations; our service can also be made available for riders as a tool of an
exercise. In a way, rides can use our bicycles to cycle around the campus which can
be very healthy for them.
6.2.2 Lectures and the staffs of UiTM Shah Alam
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Instead of using their car, they can use this service to go to their required
destinations within the campus. For example, the location of the Administration
Office to the Non-Residential Caf. From there, instead of having problem with the
parking spot, they can park the bike at the provided dock. So, they can save time.
Besides, Sapphire bike rental is an eco-friendly service which does not release any
harmful chemical like carbon monoxide that can cause pollution to the environment
as compared to current transportation.
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6.3 Sales Forecast

Daily Sales Forecasted Year 1 (2017)
10AM-12 12- 8PM &

Total 6-8AM 8-10AM 2-4PM 4-5PM 5-7PM
NOON 2PM Above
NR 20 20 20 20 20 20 20 20
Admin 20 20 20 20 20 20 20 20
Total Usage 320 40 40 40 40 40 40 40 40
Rate/30min (RM) 150 150 150 150 150 150 150 150
Total Revenue 480 60 60 60 60 60 60 60 60
(RM)
Total Sales for a week = RM 480 x 7 days = RM 3,360.00
TOTAL SALES FORECAST FOR YEAR 1
Week 1(RM) Week 2 (RM) Week 3 (RM) Week 4 (RM) Total(RM)

January 5,040.00 5,040.00 5,040.00 5,040.00 20,160.00
February 5,040.00 5,040.00 5,040.00 5,040.00 20,160.00
March 5,208.00 5,208.00 5,208.00 5,208.00 20,832.00
April 4,704.00 4,704.00 1,882.00 1,882.00 13,171.00
May 1,882.00 1,882.00 1,882.00 2,352.00 7,997.00
June 4,032.00 4,200.00 4,200.00 4,200.00 16,632.00
July 4,200.00 5,376.00 5,376.00 5,376.00 20,328.00
August 5,376.00 5,376.00 5,376.00 5,376.00 22,848.00
September 5,712.00 6,720.00 5,712.00 5,712.00 23,856.00
October 8,568.00 8.568.00 5,141.00 5,141.00 27,418.00
November 5141.00 5141.00 5141.00 5998.00 21420.00
December 6720.00 6720.00 1080.00 1080.00 16800.00
Total 231600.00
Daily Sales Forecast Year 2 (2018)
10AM-12 12- 8PM &

Total 6-8AM 8-10AM 2-4PM 4-5PM 5-7PM
NOON 2PM Above
NR 20 20 20 20 20 20 20 20
Admin 20 20 20 20 20 20 20 20
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Block 1 20 20 20 20 20 20 20 20
Total Usage 480 60 60 60 60 60 60 60 60
Rate/30min (RM) 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50
Total Revenue 720 90 90 90 90 90 90 90 90
(RM)
Total Sales for a week = RM 720 x 7 days = RM 5,040.00
TOTAL SALES FORECAST YEAR 2

January 2,646.00 6,048.00 6,048.00 6,048.00 20,790.00
February 6,384.00 6,384.00 6,384.00 6,384.00 25,536.00
March 6,216.00 6,216.00 6,216.00 6,216.00 24,864.00
April 9,324 9,324.00 3,730.00 3,730.00 26,107.00
May 3,730.00 3,730.00 3,730.00 5,594.00 16,783.00
June 4,032.00 4,032.00 2,016.00 3,696.00 13,776.00
July 6,384.00 6,384.00 6,384.00 6,384.00 25,536.00
August 8,064.00 8,064.00 8,064.00 9,072.00 33,264.00
September 8,064.00 9,072.00 8,064.00 8,064.00 33,264.00
October 8,064.00 6,300.00 3,150.00 3,150.00 20,664.00
November 3,150.00 3,150.00 3,150.00 5,040.00 14,490.00
December 8,820.00 8,820.00 2,646.00 2,646.00 22,932.00
Total 277,920.00
Daily Sales Forecast for Year 3 (2019)
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Total Sales for a week = RM 1,200 x 7 days = RM 8,400.00
TOTAL SALES FORECAST YEAR 3

January 2,648.00 8,064.00 8,064.00 8,064.00 26,840.00
February 8,568.00 8,568.00 10,080.00 10,080.00 37,296.00
March 10,416.00 10,416.00 10,416.00 10,416.00 41,664.00
April 10,416.00 10,416.00 3,648.00 3,648.00 28,123.00
May 3,646.00 3,646.00 3,646.00 4,166.00 15,103.00
June 9,408.00 8,938.00 9,408.00 11,424.00 39,178.00
July 11,424.00 11,424.00 11,424.00 11,424.00 45,696.00
August 13,608.00 13,608.00 13,608.00 13,608.00 54,432.00
September 13,860.00 13,860.00 13,860.00 13,860.00 55,440.00
October 14,280.00 14,280.00 4,284.00 4,284.00 37,128.00
November 4,284.00 4,284.00 4,284.00 5,712.00 18,564.00
December 6,720.00 6,720.00 2,016.00 2,016.00 17,472.00
Total 416,880.00
In year 1 (2017), we expect our sales would be RM 231,600.00. We will start with 2 pit stops which
consist of 40 bicycles. Our daily revenue is estimated to be RM 480. The sales earned in the first
year are increasing from month to month. In the second year, we expect our sales to increase by
19% and the sales are expected to further increase by 50% in year 3.
6.4 Marketing Strategies

Marketing strategy is one of the important elements to market the organization service.
The organization must use many strategies to promote our services to the customer. For
Sapphire, marketing strategy is our key strength to make the customer well informed of
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our best and high quality service. The marketing strategies that we use to promote our
service to the target market are:
6.4.1 Quality
Sapphire only offer high quality services in order to achieve high number of
loyal customers since high quality services are not usually easily to be found
in the market. Quality plays a main role in marketing strategies. The main
thing that we always prioritize before offering the services to the customer is
the quality. From the quality, we can know that our customer will satisfy with
our service. When they are satisfied with the quality of the service, they will
use our product again and thus we can get a regular and loyal customer. To
offer the best quality service to our customers, we provide top quality bikes
which are safe and easy to use. To boost up the quality of our services, we
design our own bicycle. This brand has been established all around the world
and has been proven as a top quality brand. Therefore, we can attract
customers to use our service by providing a quality bike rental.
6.4.2 Pricing
Although Sapphire service is high-end and safe in terms of quality of, our
pricing structure remains affordable. Our pricing structure is also based on
the duration of the rental of our bikes. For bike rental, we provide a fixed
price which also includes loyalty program that gives rebate for the frequent
renter. Our pricing structures are based on the survey that had been done to
our competitors. The pricing also are based on the cost from the initial outlay
and also on the value of the customers place on this service. To attract more
people to be our customers, we set the affordable price that will satisfy the
customers.
6.4.3 Place
Sapphire is located at UiTM Shah Alam Campus. The reason for Sapphire to
operate the bike rental service within university campus is that our service
business is aiming the university students, lecturers and staffs and the
population meets our target. We also noticed that majority of the UiTM Shah
Alam students have problem of transportation within and outside campus.
The existing bike rental service provided in UiTM is not satisfying the
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students needs. There are many complaints about the quality as well as the
price. Besides, the transportation offers for the students to go for outing also
inefficient. The yellow bus service sometimes charged them with a high
price.
6.4.4 Promotions
Sapphire introduces new service which is called as bike sharing system.
Since we are the first to introduce this service in Malaysia, we need to
implement an aggressive marketing promotion to introduce our service to
people. As starter, promotion of Sapphire is done through non-media channel.
As for our business, we promote our service through bunting, flyers and
business cards which the total budgeted cost for the first year is about RM
560.00.
The important method in order to promote our company is to disseminate our

business card to the customers because this is an easy way for them to get to
know our service. In the business card stated the name of our service,
telephone number, address and details about our service. So the customers
can easily contact, ask or deal with us.
Besides that, we also use bunting to promote our service. In order to make
people aware to the bunting, we apply the attractive colour and writing on it.
We place it at strategic places so that people can see the bunting clearly
without any obstacles. We will put our bunting at every college, building and
strategic location that people passes around the campus. This will help our
customers to recognize our service.
In addition, we also use flyers as one of our marketing strategies. In order to

introduce our service to the customer, we will distribute flyers to people and
society to get their support and recognition. Flyers are easier to distribute and
it will give a good impact if we distributed correctly.
As for our long-term prospect, we expect this service to be introduced to all

IPTA and IPTS throughout Malaysia. When the time comes, we will expand
our promotion to media-channel including Blog, Twitter, and Instagram.
6.5 Marketing Budgets
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Units Rate per unit Total Amount (RM)

(RM)
Banners 2 80.00 160.00
Bunting 4 15.00 60.00
Flyers 2 rim 10.00 20.00
Business Cards 6,000 pieces 50.00 300.00
(RM50 per 1000
pieces)
Brochures 2 rim 10.00 20.00
Total 560.00
7.0 Operations Plan

7.1 Processing Plan
Refer to Appendix (1)
7.2 Operation Layout

7.3 Office Layout

7.4 Machines and Equipments Planning

Non-current assets in operation department own by Sapphire consists of the
bicycles used to be rented and also the cycle lots. The assets are depreciated at 20% and
10% for the bicycle and cycle lots respectively based on cost with no residual value
starting from the commencement of the business. Besides, we also have CCTV as our
safety tool.
Non-Current Depreciation (RM) Total (RM)

Assets Year 1 Year 2 Year 3
Bicycles 40,000 x 20% 60,000 x 20% 100,000 x 20%
= 8,000 = 12,000 = 20,000 40,000
Cycle Lots 40,000 x 10% 60,000 x 10% 100,000 x 10%
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= 4,000 = 6,000 = 10,000 20,000

CCTV 700 x 20% 1,050 x 20% 1.750 x 20%
= 140 = 210 = 350 700
7.5 Manpower Planning

7.5.1 Task and Responsibilities
No. Position Task & Responsibilities

1. General Manager Responsible for effective planning, delegating,
coordinating, staffing, organizing and decision
making to attain desirable profit, making results
for an organization
2. Operational Manager 1 Improve the operational systems, processes and

policies in support of organizations mission
specifically, support better management reporting,
information flow and management, business
process and organizational planning.
3. Operational Manager 2 Play a significant role in long-term planning,

including an initiative geared toward operational
excellence
4. Financial Manager Develop, maintain and monitor all fundraising and

accounting systems and procedures capturing all
pledges, billings and receipts and for the recording
of all revenue transactions, recommend and
implement improvements to systems.
5. Marketing Manager Research and report on external opportunities

while develop the marketing strategy and plan.
6. Administration Handles managing the office budget and

Manager maintenance schedule for supplies, equipment and
technological systems
7. Maintenance staff Performs routine and extensive preventive

maintenance and repairs procedures on the
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bicycle.
7.5.2 Manpower Expenses
No. Position No. of Salary/Mont EPF 11% SOCSO Total

Staff h (RM) (RM) 1.75% (RM)
Required (RM)
1. Maintenance 1 500 55 8.75 563.75
Staff
Total 1 500 55 8.75 563.75
7.6 Overheads Requirement
Year 1:
Overheads Rate per Month (RM) Annual Overheads (RM)

Depreciation of bicycles 8,000.00
Maintenance staff salary 500.00 6,000.00
Service bicycle expenses 1,000.00 12,000.00
Interest on loan to Bank 200.00 2,400.00
Rakyat
(6% of RM40,000)
Insurance premiums 1,200
(annually)
7.7 Location of Pit-Stops
Please refer to Appendix (4) to (8)
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7.8 Business and Operating Hours

7.8.1 Business Hours
Days Business Hours

Weekdays 8am 5pm
Weekend OFF
7.8.2 Operation Hours

Sapphire Bike Rental Service will be operating on 24 hours every day
which consists of 7 days a week.
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7.9 Operations Budget

A) Year of 2017
Capital Monthly Expenses Other
Items Expenditure (RM) Expenses
(RM) (RM)
Construction of cycle lots 40,000.00

(2 pit stops)
Purchase of bicycles 40,000.00
(20 units)
Purchase of CCTV 700.00
(2 units
Salary 500.00
EPF and SOCSO 70.00
Service bicycles expenses 1,000.00
Insurance premium 1,200.00

(3% per annum)
Interest on Bank Loan 200.00 2,400.00
(6% of RM40,000)
Total Expenses 80,700.00 1,770.00 3,600.00
(i) Forecasted Operations Expenses for Year 2017
Months Expenses Amount (RM)

January 1,770.00
February 1,770.00
March 1,770.00
April 1,770.00
May 1,770.00
June 1,770.00
July 1,770.00
August 1,770.00
September 1,770.00
October 1,770.00
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November 1,770.00
December 5,370.00
Total 24,840.00
B) Year of 2018

(RM) (RM)

(add 1 pit stop)
(add 10 units)
(add 1 unit)
Salary (Maintenance Staff) 500.00
EPF and SOCSO 70.00

(3% per annum)
Interest on Bank Loan 2,158.00
(6% of RM40,000)
Total Expenses 40,350.00 2,270.00 3,600.00

January 2,270.00
February 2,270.00
March 2,270.00
April 2,270.00
May 2,270.00
June 2,270.00
July 2,270.00
August 2,270.00
September 2,270.00
October 2,270.00
November 2,270.00
December 5,870.00
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Total 30,840.00
C) Year of 2019

(RM) (RM)

(add 2 pit stop)
(add 20 units)
(add 2 unit)
Salary (Maintenance Staff) 500.00
EPF and SOCSO 70.00

(3% per annum)
Interest on Bank Loan 1,900.00
(6% of RM40,000)
Total Expenses 80,700.00 3,270.00 3,600.00

January 3,270.00
February 3,270.00
March 3,270.00
April 3,270.00
May 3,270.00
June 3,270.00
July 3,270.00
August 3,270.00
September 3,270.00
October 3,270.00
November 3,270.00
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December 6,870.00
Total 42,840.00
8.0 Organizational Plan

8.1 Organization Vision and Mission
a) Mission
We are devoted to succeed in being the first innovative bike share system in Malaysia.
b) Vision
Sapphire Bike Share System will establish a new form of public transportation for
universities region all around Malaysia, eco-friendly, one that is safe, financially
sustainable to operate and affordable for users.
8.2 Organization Chart
MAFOG d
amipe e i
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ktae ir o a
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Mna n a
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Position Number of staffs

General Manager 1
Operational Managers 2
Marketing Manager 1
Financial Manager 1
Administrative Manager 1
Total 6
8.3.1 Schedule of Tasks and Responsibilities
No Position Main Tasks

.
Lead the business by providing the objectives,
planning strategies and monitor the
organization policies and procedure.
Monitor the progress of the business and

1. General Manager responsible to manage any risks of the
business by adopting good strategies.
Maintain good communications skill and

relationship between suppliers, customers and
also financial institution.
Plan administration system and ensure it

become efficient and effective to ensure the
objective of the business can be achieved.
Ensuring the welfare of the workers by

2. Administrative Manager providing sufficient training and evaluating their
performance.
Playing a significant role in long-term planning,

including an initiative forward operational
excellence.
Identify target markets and developing

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3. Marketing Manager strategies to communicate with them.
Exploring new ways of improving existing

products and services, thus increasing
profitability.
Doing consistent promotions which will attract

the customers to ensure the sales reach the
target.
4. Operational Manager Improve and maintain good operational

systems from the process of selecting, ordering
and purchasing materials.
Ensure the quality of the materials used is the

best to produce the best product.
Managing the inventories effective and

efficiently to avoid any deficiency.
Being responsible towards the finance of the

company.
Formulating financial strategy to finance the
5. Financial Manager operation of the business.

Preparing the cash flow, profit and loss
account, and also the balance sheet for the
company.
Being responsible towards the condition of the
bicycles and the system.
Identifying if there is any problem or damages
to the bicycles and the systems.
Ensuring that the bicycles and the systems are
6. Maintenance Manager
in good conditions for the riders.
Immediate action must be taken if there is any
problems occur while in the use of the
customers.
Page
28
8.3.2 Schedule of Remunerations
EPF SOCSO
POSITION NO. OF MONTHLY (11%) (1.75%) AMOUNT
STAFFS SALARY (RM) (RM) (RM) (RM)
General Manager 1 1,000.00 110.00 17.50 1,127.50
Operation Manager 1 1 1,000.00 110.00 17.50 1,127.50
Operation Manager 2 1 1,000.00 110.00 17.50 1,127.50
Marketing Manager 1 1,000.00 110.00 17.50 1,127.50
Financial Manager 1 1,000.00 110.00 17.50 1,127.50
Administrative 1 1,000.00 110.00 17.50 1,127.50
Manager
Total 6,765.00
No Items Quantit Price Per Unit Total Cost

. y (RM) (RM)
1. CCTV 1 350.00 350.00
2. Fan 1 145.00 145.00
3. Laptop 1 1,900.00 1,900.00
4. Lamp 1 45.00 45.00
5. Office Table Set + File 1 600.00 600.00
Cabinet
6. Printer 1 250.00 250.00
7. Sofa Set 1 1,500.00 1,500.00
8. Telephone 1 90.00 90.00
Total 4,880.00
Page
29
8.4.1 Depreciation Schedule
Non-current assets in the administrative department owned by Sapphire Enterprise,

consists of office equipment that will facilitate the administrative work. The assets
are depreciated at 20% based on the cost with no residential value starting from the
commencement of the business.
Non-Current Depreciation (RM)

Year 1 Year 2 Year 3
Assets Total (RM)
Office 4,880 x 20% 4,880 x 20% 4,880 x 20%
Equipment = 976.00 = 976.00 = 976.00 2,928.00
8.5 Organizational/Administration Budget
Items Fixed Asset Monthly Expenses Other Expenses

(RM) (RM) (RM)
Office Equipment 4,880.00
Salary 6,765.00
Rent 400.00
Utilities 250.00
Deposit (Rent, Utilities) 650.00
Stationery 100.00
Business Registration/ 60.00
Renewal
Business Incorporation 2,000.00
Total 4,880.00 7,515.00 2,710.00
9.0 Financial Plan

9.1 Operating Budget
Page
30
9.1.1 Administrative Department
9.1.2 Marketing Department
9.1.3 Operations Department
Page
31
9.2 Project Implementation Cost and Sources of Finance
Page
32
Page
33
9.3 Fixed Asset Depreciation Schedule

The depreciation schedules for each of the fixed asset are calculated using the straight-
line method.
Type of Fixed Asset : Office Equipment

Cost (RM) : 4,880.00
Depreciation Method : Straight-line
Economic Life (yrs) :5
Annual Accumulated
Year Depreciation Depreciation Book Value
- - 4,880.00
2017 976.00 976.00 3,904.00
2018 976.00 1,952.00 2,928.00
2019 976.00 2,928.00 1,952.00
2020 976.00 3,904.00 976.00
2021 976.00 4,880.00 -
Type of Fixed Asset : Cycle Lost

Cost (RM) : 40,000.00
Economic Life (yrs) : 10
Annual Accumulated
Year Depreciation Depreciation Book Value
- - 40,000.00
2017 4,000.00 4,000.00 36,000.00
2018 4,000.00 8,000.00 32,000.00
2019 4,000.00 12,000.00 28,000.00
2020 4,000.00 16,000.00 24,000.00
2021 4,000.00 20,000.00 20,000.00
2022 4,000.00 24,000.00 16,000.00
2023 4,000.00 28,000.00 12,000.00
2024 4,000.00 32,000.00 8,000.00
2025 4,000.00 36,000.00 4,000.00
2026 4,000.00 40,000 -
Page
34
Type of Fixed Asset : Bicycles

Cost (RM) : 40,000.00
Year Annual Accumulated Book Value
Depreciation Depreciation
- - 40,000.00
2017 8,000.00 8,000.00 32,000.00
2018 8,000.00 16,000.00 24,000.00
2019 8,000.00 24,000.00 16,000.00
2020 8,000.00 32,000.00 8,000.00
2021 8,000.00 40,000.00 -
2022 0 0 -
2023 0 0 -
2024 0 0 -
2025 0 0 -
2026 0 0 -
Type of Fixed Asset : CCTV

Costs (RM) : 700.00
Year Annual Accumulated Book Value
Depreciation Depreciation
- - 700.00
2017 140.00 140.00 560.00
2018 140.00 280.00 420.00
2019 140.00 420.00 280.00
2020 140.00 560.00 140.00
2021 140.00 700.00 -
2022 0 0 -
2023 0 0 -
2024 0 0 -
2025 0 0 -
2026 0 0 -
9.4 Loan and Hire Purchase Depreciation Schedule
Page
35
Amount (RM) : 40,000.00

Interest Rate : 6%
Duration (yrs) :8
Depreciation Method : Annual Rest
Instalment Payments
Year Book Value
Principal Interest Annual Payment
- - - 40,000.00
2017 4,041.00 2,400.00 6,441.00 35,959.00
2018 4,284.00 2,158.00 6,441.00 31,675.00
2019 4,541.00 1,900.00 6,441.00 27,134.00
2020 4,813.00 1,628.00 6,441.00 22,320.00
2021 5,102.00 1,339.00 6,441.00 17,218.00
2022 5,408.00 1,033.00 6,441.00 11,810.00
2023 5,733.00 709.00 6,441.00 6,077.00
2024 6,0377.00 365.00 6,441.00 0
2025 0 0 0 0
2026 0 00 0 0
2027 0 0 0 0
2028 0 0 0 0
2029 0 0 0 0
2030 0 0 0 0
2031 0 0 0 0
2032 0 0 0 0
2033 0 0 0 0
2034 0 0 0 0
2035 0 0 0 0
2036 0 0 0 0
9.5 Statement of Cash Flows
STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER
2017 2018 2019

(RM) (RM) (RM)
Page
36
CASH FLOWS FROM OPERATING ACTIVITIES

Net Income before tax 100,404 149,486 288,704
Adjustment for:
- Depreciation of fixed assets 13,116 13,116 13,116
- Interest expenses 2,400 2,158 1,900
Operating profit before changes in working capital 115,920 164,780 303,720
(Increase)/decrease in inventories - - -
(Increase)/decrease in accounts receivable - - -
Increase/(decrease) in accounts payable - - -
Interest Paid (2,400) (2,158) (1,900)
Tax Paid - - -
(Increase)/decrease in other current assets - - -
Increase/(decrease) in other current liabilities - - -
Net Cash from Operating Activities 113,520 162,602 301,820
CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant & equipment (85,580) - -
(Increase)/decrease in other non-current assets (650) - -
Net Cash used in Investing Activities (86,230) - -
CASH FLOWS FROM FINANCING ACTIVITIES

Increase in Share Capital 59,335 - -
Proceeds from long-term loans 40,000 (257) (272)
Repayment of long-term loans (4,041) (4,284) (4,541)
Repayment of loan-purchase - - -
95,294 (4,541) (4,814)
Net Cash from Financing Activities
122,584 158,062 297,006

Net increase/(decrease) in cash
- 122,584 280,902
CASH AT THE BEGINNING OF THE YEAR
122,584 280,902 577,908

CASH AT THE END OF THE YEAR
Page
37
9.6 Pro-Forma Income Statement
SAPPHIRE ENTERPRISE
PRO-FORMA INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER
2017 2018 2019

(RM) (RM) (RM)
Sales 231,600 277,920 416,880

231,600 277,920 416,880
Expenditures:
2,520 - -
Pre-Operating & Incorporation Expenditure
90,180 90,180 90,180
General & Administrative Expenditure
480 480 480
Sales & Marketing Expenditure
21,240 21,240 21,240
Operations & Technical Expenditure
13,116 13,116 13,116
Depreciation of Fixed Assets
1,260 1,260 1,260
Other expenditures
102,804 151,644 290,604

Operating Income
- -
-
Interest on Hire-Purchase
2,400 1,900
2,158
Interest on Loan
100,404 149,486 288,704

Net Income Before Tax
- - -
Income Tax
100,404 149,486 288,704
Net Income After Tax
Page
38
9.7 Pro-Forma Balance Sheet

SAPPHIRE ENTERPRISE
PRO-FORMA BALANCE SHEET AS AT 31 DECEMBER
2017 2018 2019

(RM) (RM) (RM)
Non-Current Assets (Book Value):

Land & Building - - -
Other Fixed Assets 72,464 59,348 46,232
Other Non-Current Assets - - -
Deposit 650 650 650
73,114 59,998 46,882
Current Assets:
Inventory - - -
Accounts Receivable - - -
Cash Balance 122,58 280,90 578,18
Other Current Assets 4 2 1
- - -
122,58 280,90 578,18
TOTAL ASSETS 4 2 1
195,69 340,90 625,06

8 0 3
Owners Equity:
Capital
Accumulated Income
59,335 59,335 59,335
100,40 249,89 538,59
4 0 4
Current Liabilities: 159,73 309,22 597,92
Accounts Payable 9 5 9
Loan Due Within Current Year
Hire-Purchase Due within Current Year
Other Current Liabilities - - -
4,284 4,541 4,813
- - -
- - -
Long-Term Liabilities:
Loan Balance 4,284 4,541 4,813
Page
39
Hire-Purchase Balance
31,675 27,134 22,320

- - -
TOTAL EQUITY AND LIABILITY 31,675 27,134 22,320
195,69 340,90 625,06

8 0 3
10.0 Appendices
(1) Process Planning
Page
40
Page
41
(2) Operation Layout
Page
42
(3) Office Layout
Page
43
Page
44
(4) Location of Pit-stop 1: Admin Office
(5) Location of Pit-stop 2: Non-Residential Area
Page
45
(6) Location of Pit-stop 3: Sport Centre
(7) Location of Pit-stop 4: Block 1
Page
46
(8) Location of Pit-stop 5: IPC
Page
47
(9) Bunting
Page
48
Page
49
(10) Flyers
Page
50
Page
51
(11) Brochures
Page
52
Page
53
Page
54

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Sapphire Bike Rental: Business Plan

Sapphire Bike Rental Service is an innovative transportation program which is suitable

3.0 Company Background

TELEPHONE 07-526 7447

DATE OF 1st of January, 2017

4.0 Partners Background

Name Muhammad Zariq Bin

Identity Card No. 930323-14-6671

Telephone 018-267 6752

Address No. 26, Jalan Kota Harmoni 27/97,

Date of Birth 23rd March, 1993

Marital Status Single

Academic Bachelors Degree in Business Management

Skills Leadership and Communication

Working General Manager for AceSolutions (M) Sdn. Bhd.

Name Siva Chander A/L Rajendran

Position Marketing Manager

Identity Card No. 920402-12-6741

Telephone 018-370 7356

Address No. 10A, Block 3J,

Date of Birth 2nd April 1992

Marital Status Single

Academic Bachelors Degree in Business Management

Skills Teamwork and leadership

Name Mugheshwaran A/L Ganason

Position Operational Manager

Identity Card No. 940905-07-5067

Telephone 017-770 0577

Address No. 2A, Taman Bukit Mewah Fasa 9,

Date of Birth 5th September, 1994

Marital Status Single

Academic Bachelors Degree in Business Management

Skills Calculating and Teamwork

Working Factory worker

Name Sanam Kaur

Position Financial Manager

Identity Card No. 931008-08-5340

Telephone 016-555 5340

Address No. 3, Taman Melur,

Date of Birth 8th October, 1993

Marital Status Single

Academic Bachelors Degree in Business Management

Skills Critical Thinking and Operational Planning

Name Teoh Chun Hoong

Position Maintenance Manager

Identity Card No. 950201-14-5601

Telephone 018-325 7432

Address No. 16, Jalan Kajang Mulia 2,

Date of Birth 1st February, 1995

Marital Status Single

Academic Bachelors Degree in Mechanical Engineering

Skills Maintenance and Technician

5.0 Business Site

6.0 Marketing Plan

Sapphire bike rental is an innovative transportation program, whereby subscribers

6.1.2 Services Description

6.2 Target Market

6.2.1 UiTM Shah Alam Students

6.2.2 Lectures and the staffs of UiTM Shah Alam

6.3 Sales Forecast

10AM-12 12- 8PM &

Total Sales for a week = RM 480 x 7 days = RM 3,360.00

TOTAL SALES FORECAST FOR YEAR 1

Week 1(RM) Week 2 (RM) Week 3 (RM) Week 4 (RM) Total(RM)