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LIPBOOM SDN BHDPRINCIPLE OF ENTREPRENEURSHIP (ENT 530) – BUSINESS PLANFACULTY & PROGRAMME CODE : ACCOUNTANCY (AC 220)SEMESTER : 3GROUP : MAC220 3BGROUP MEMBERS :NO NAME STUDENT ID1 NOOR ZUHAIRAH BTMOHD NASIR20184355022 NURUL HAFIZAH BTOZMAN @ OMRANZAILUDDIN20184361243 NUR IMAN NATASHA BTZAINULLA...

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LIPBOOM SDN BHD PRINCIPLE OF ENTREPRENEURSHIP (ENT 530) – BUSINESS PLAN FACULTY & PROGRAMME CODE : ACCOUNTANCY (AC 220) SEMESTER : 3 GROUP : MAC220 3B GROUP MEMBERS : NO 1 2

3 4

NAME NOOR ZUHAIRAH BT MOHD NASIR NURUL HAFIZAH BT OZMAN @ OMRAN ZAILUDDIN NUR IMAN NATASHA BT ZAINULLAH WAN NUR IZZATI AMALIN BT WAN AMIR

SUBMITTED TO : MADAM ANIDAH BT AZIZ SUBMITTED DATE : 15 NOVEMBER 2019

STUDENT ID 2018435502 2018436124

2018226662 2018223508

LETTER OF SUBMISSION Bachelor in Accountancy (AC220) Faculty of Accountancy Universiti Teknologi MARA

15 November 2019

Puan Anidah binti Aziz Lecturer of Principles of Entrepreneurship (ENT530) Universiti Teknologi MARA Cawangan Melaka 78000 Alor Gajah, Melaka

Madam, Submission of the Business Plan (ENT530) Attach is the business plan title “Lipboom Sdn Bhd” to fulfill the requirements as needed as university requirements. Below is the list of the group members that involved in completing this business plan: NO 1 2

3 4

Yours sincerely, --------------------(Siti Hawa bt Osman) General Manager

NAME NOOR ZUHAIRAH BT MOHD NASIR NURUL HAFIZAH BT OZMAN @ OMRAN ZAILUDDIN NUR IMAN NATASHA BT ZAINULLAH WAN NUR IZZATI AMALIN BT WAN AMIR

STUDENT ID 2018435502 2018436124

2018226662 2018223508

ACKNOWLEDGEMENT We would like to express our deepest appreciation to all those who provided the possibility to complete this project.

A special gratitude we would like to give to our respected lecturer, Madam Anidah bt Aziz. All gratitude that you have contributed to us are really helpful in order for us to complete this project. Without guidence, our porject would have been incomplete and imperfect as wll as we might have not complete it just on time.

In addition, a special thanks to our friends and both of our parents for their moral support and thier encouragement. We have come to know about many things while completing this project. Together, we show our best to complete the project and also showing our teamwork.

Finally, we would also like to thank all other peopla who contributed direct or indirectly to the elaboration of this project.

We hope that this project has come to its very best. Moreover, we also hope that this project could help us in terms of contributing pints in getting goods grade in this subject, Principles of Entrepreneurship.

Last bt not least, all of us have done our very best to complete this project. Thank you.

TABLE OF CONTENT LETTER OF SUBMISSIOM ACKNOWLEDGEMENT TABLE OF CONTENT 1. EXECUTIVE SUMMARY 2. COMPANY PROFILE 2.1 Details of company name and logo 2.2 Company background

3. ENVIRONMENTAL INDUSTRY ANALYSIS 3.1 Needs in the market place 3.2 Characteristics of the service 3.3 Industry and trends of the company operates in 3.4 Analysis prediction for the industry 3.5 industry profile 3.6 Service details 3.7 Technologies/ Special know-how 4. DESCRIPTION OF VENTURE 4.1 Opportunity 4.2 Benchmarks

5. OPERATIONS AND PRODUCTION PLAN 5.1 Operation 5.2 Facilities and Improvements 5.3 Future Capital Needs 5.4 Operating Cycle 5.5 Strategy and Plans 5.6 Regulatory and Legal Issues

6. MARKETING PLAN 6.1 Marketing Objectives 6.2 Customers 6.3 Market Size and Trends 6.4 Competition and Competitive Edges 6.5 Estimated Market Share and Sales 6.6 Marketing Strategy 6.7 Organizational Chart for Marketing Department 6.8 Marketing Budget

7. ORGANIZATIONAL PLAN 7.1 Organizational Chart 7.2 Key Management Personnel 7.3 Schedule of Task and Responsibilities 7.4 Management Compensation and Ownership 7.5 Organizational Budget 8. FINANCIAL PLAN 8.1 Operational Budget 8.2 Project Implementation Cost 8.3 Fixed Assest and Depreciation Schedule 8.4 Loan Depreciation Schedule 8.5 Pro Forma Income Statement 8.6 Cash Flow

9. PROJECT MILESTONE 10. CONCLUSION 11. APPENDICES

1.0 EXECUTIVE SUMMARY Lipboom Sdn Bhd is a company based in Shah Alam that offers organic lip scrub products. Our company offers an organic lip scrubs which is Coffee and Honey Scrub. As we know coffee and honey are very popular in the field of beauty and combined these two flavour and take this opportunity to produce lip scrubs. We want to help women achieve beautiful and healthy lips because many who do not know the lips should also be taken care of not just the face. The lips are very sensitive because they have the thinner skin.The lips have a thinner layer of only 3-5 layers while the rest of the skin has up to 16 layers. The lips also do not have any feathers, nor sweat glands as well as sebum glands which produce good sebum for moisturizing the skin. That's why lips are the quickest, most sensitive, and most easily 'aged' part of our face. Lipboom Sdn Bhd is located at Kawasan Perindustrian Temasya Suria which is at placed at the centre of Shah Alam. Therefore our target market is teenagers and adults women which age 16 years old and above who study or live around Shah Alam. This location is an easy access via Federal Highway, NKVE and Guthrie Corridor, all of this location is a major highways for Shah Alam. This is a very strategic location & strong corporate image. This is situated within the Bustling HUB of Temasya Industrial Park. The neighbouring properties in the vicinity automotive showrooms such as WSG, Proton, Lamborghini , Porsche. BMW, Volvo, Audi, Honda, etc. This near Subang Jaya, sunway Pyramid, Subang Perade, ss15 hot area, just 10 min drive distance away and hot industri park area.

Lipboom Sdn Bhd has ten employees. Lipboom Sdn Bhd finance their business by using personal contribution from the partners amounted RM20,000 each and from a bank loan. All the partner contributions and bank loans are used to support our start-up business capital and expenses. We also plan to use the funds to buy all the equipments to operates the business.

In conclusion, we hope that our lip scrub will help people to get beauty and healthy lip in the world because Lipboom Sdn Bhd will be lead by Siti Hawa and her team Zuhairah, Hafizah, Izzati and Natasha. Due to the expertise of Hawa team, Lipboom definitely will realize good revenue and profits every year.

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2.0 COMPANY PROFILE 2.1 COMPANY NAME AND LOGO

The name of our company is LIPBOOM Sdn Bhd because of by using our unique name can attract the customer to buy our product. We trying to invent a lip care product so that people know that lip is also very important to take care of even though some people see it as a normal part and do not need a proper care but it is wrong. The colour of our logo is white which potrays that we are commited in our job. The icon of LIPBOOM Sdn Bhd is lip which presents the lip of people. Our motto is “Your Lips Need A BFF Too” means that LIPBOOM Sdn Bhd will be a bff towards girls out there.

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VISION AND MISSION Vission To be the best lip scrub in Malaysia while producing the best lip scrub in Malaysia.

Mission 1. To help people get their shining lips. 2. To make sure people know the importance of lip care. 3. To fulfill the satisfy needs of customers especially ladies. 4. To produce a high quality product to the customers. 5. Tried our best to ease people and also offers solution on customers have sensitive skin.

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2.2 COMPANY BACKGROUND Name of the Business Business Address

LIPBOOM Sdn Bhd 1, Jalan Pengacara U1/48, Temasya Industrial Park, Seksyen U1, Glenmarie, Shah Alam, 40150, Shah Alam, Selangor 1, Jalan Pengacara U1/48, Temasya Industrial

Correspondence Address

Park, Seksyen U1, Glenmarie, Shah Alam, 40150, Shah Alam, Selangor www.lipboom.com [email protected] 012 9876522 / 03 918640 03 1459176 Partnership Produce lip scrub 1 January 2019 1 January 2018 00861721-A Maybank Berhad 162797173386

Website Email Telephone Number Fax Number Form of Business Main activity Date of Commencement Date of Registration Registration Number Name of Bank Bank Account Number

3.0 ENVIRONMENTAL INDUSTRY ANALYSIS 3.1 NEEDS Nowadays, it’s all about self-care for female, be it women, teenagers and even girls of young age. This is the main reason that encourages us, Lipboom Sdn Bhd to come out with a beauty 4

care product for the lips. Lip scrubs are a fairly new product on the market. They are usually a moisturiser with an exfoliant. Although it seems unnecessary, but we think that it is important for people to take better care of their lips. Lip scrubs help remove dead skin from your lips bringing out new fresh layers, making lips soft and smooth.

For women there are also other advantages that will make you consider scrubbing your lips. For example, with smooth lips cosmetics will adhere longer making lipsticks and lip liner much more effective and longer lasting. Exfoliating one’s lips regularly keeps the lips moist and retain its moisture longer, thus helping to prevent cracked lips. Furthermore, our product is also affordable and people from all gender are not restricted to use our product. Lips are a part of our body which makes it super important to us. That’s why we should take a really good care of our lips. Our coffee and honey lip scrub aren’t like the other lip scrubs in the market because we only use organic ingredients and no harsh chemicals were added into our lip scrub. This feature makes our product safe to use, even for people who have sensitive skin.

3.2 CHARACTERISTICS PRODUCT FEATURES

BENEFITS 5



DESCRIPTIONS Eco-friendly packaging



Use organic ingredients



Packaging won’t harm the

environment 

The ingredients used are very gentle to the skin



The caffeine found in coffee scrubs typically increases blood flow, and may reduce the appearance of cellulite and give skin a more even tone



keeps the lips moist and retain its moisture longer

3.3

INDUSTRY AND TRENDS

Our company is considered a production company because we are producing a beauty product which is lip scrub. We are trying to create a product that gives a lot of benefit to people, especially female. That’s why we decided to produce lip scrub since there are not many companies in the beauty industries that focuses on lip products. Nowadays, beauty industry is getting more attention from people, especially females. Therefore, Lipboom Sdn Bhd need to differentiate and create a product that is uncommon and special in order to compete and stay in this industry. Customers would want to know the differences of our 6

product from other companies because they are going to compare our product with others in different aspects. Therefore, our quality must be maintained or improved to gain loyalty from customers.

After taking into consideration the risks that might be happening and recognizing all the opportunities, we hope that our business will become more developed in the future because with the new innovations and development in our product, it will help people care for themselves. Our product focuses more towards females since females are more concerned about their self-care but males can also benefit from our product so we hope that in the future our lip scrubs demand will increase. We are also planning to create more flavours for our lip scrubs in the future. This will give us advantage in making sure that our products can last a long time and make Lipboom Sdn Bhd’s name bigger in the beauty industry.

3.4 DESCRIPTION OF INDUSTRY Lipboom Sdn Bhd is a production company since we are producing lip scrubs. We have four industrial structures which are marketing, operational, administrative and financial structure. Every department has one manager that will manage all things related with their department. We allocate budget for each department. Our business size is medium since we are just starting our business. However, we are always striving to be a big company who are wellknown among the consumers. The major factors affecting our market growth are supply, demand and consumer expectations. If the demand from consumers keep increasing, it is good 7

for our business and we can supply our products based on the demand. However, if the demand decreases, it will be a problem for Lipboom Sdn Bhd because it affects the business. Consumer expectation is also one of the factors that affects our market growth. It is not easy to fulfil every customers’ demands but our company is always trying to meet and satisfy our customers’ expectations. Lipboom Sdn Bhd will continue to improve as days go by. Although quite new, our company have quite a number of competitors such as Nivea, Vaseline, Lush and Sephora. All of the listed companies had been in the beauty industry for quite a long time. They have quite the experience so they should know by now what exactly the consumers’ demands are. Lipboom Sdn bhd approaches consumers by distributing questionnaires to consumers to help in improving the quality of our lip scrubs. Our company have a strong competitive environment. Our market shares will drop if there are new entrance. For now, our market share is 10%. Even though there will be new entrant in this industry, we hope that our market shares will remain constant. Lipboom Sdn Bhd uses MYOB software to key in all the data related to the business. That software is an accounting software that can perform many tasks such as produce financial statement, keep track of our inventories and other tasks related to accounting.

3.5 PRODUCT Difference between what is currently on the market and what will we offer.

Differences

Lipboom

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Product on market

Ingredient

Edibilty

There is no chemical ingredient in the

Using variety chemical product

lip scrub and it is 100% organic product

to produce lip scrub

Edible because it contains honey and

Non edible

coffee Price

Reasonable and affordable compare to

Quite expensive and not

others

everyone can own it

3.6 DETAIL EACH PRODUCT Our company decided to name the product LipBoom because it is different than other lip scrub. The ingredient used in the lip scrub is from high quality product which is honey and coffee that has their own vitamin. The main ingredient in the lip scrub just same like the other 9

lip scrub which is white sugar and olive oil but we have our own secret ingredient which is vitamin E that rarely used by the other product in their lip scrub. Every products has their benefits and advantages, so do our product. Our product likely more to save space. For example, the small packaging of lip scrub make it easier for anyone to bring it anywhere at any time. Next, by having this product, our customer can use it for a long period estimate time about 9 – 12 month because they only need to apply a small amount of lip scrub for every use. Our product are launch with unique feature that not same with other product in the market. Not like the other lip scrub, customer have to twisting the cover to open it. We make it easier for the customer to use, so we decide to do pull and push cover. It is more convenient to the customer as they only have to pull to open it and push to close and it is more safe since the cover are more tight than the others. One of the possibility drawback is we have only flavour for our lib scrub which is coffee and honey. Since we are still new in this industry we don’t have variety of flavour for customer to choose compare to other brand. We are still in process to produce other flavour to give our customer variety choice in choosing our lip scrub. The present state of development of the product is based in Shah Alam, Selangor. We started our factor with small shop which are the shop and factory inside one building. We just produce or product the local but we try to sell our product with the nearest neighbouring region which are Negeri Sembilan, Melaka, Perak and Pahang to large our network of marketing. However we need to ensure our product was believed and accepted by the local first before we enlarge our marketing towards a bigger community or buyer which is the whole Malaysia

Overall we need about two months to develop and test before come out with the true product. We keep researching and developing to ensure the product that we product was the best and user friendly. The practical model was release a month after research and development and we took another research to improvised and minimalist the drawback of our 10

product. We introduce our product through different medium and platform such as social media, advertisement and mass media. Our company invest to produce our product was roughly RM 11 per product. This include the ingredient and the packaging that we designed. This budget also include our worker pay rate and other accommodation we used during the process to produce this product. The competitive advantage that the customers need always keep changing along with the time. In order to retain and keep the current customers, our business must constantly adapt to meet the changing requirements. We need to constantly introduce new feature of our product to keep existing customer satisfied with our product. Next, way to retain the current market share is to improvise our existing product with newer and updated materials. If our product was well accepted by the user, we will expand our product towards a bigger market line by introduce new product. We try to market it nationwide and increase the number of workers in marketing and factory field to ease the process. If our product accepted well by Malaysian, we will try to break the outside market like Indonesia and Thailand to sell our product.

3.7 TECHNOLOGIES AND SPECIAL KNOW- HOW Technology is the use of scientific knowledge for practical purposes or applications, whether in industry or in our daily life. Technology now days literally have made huge difference to 11

our life in order to ease our life. As we from LipBoom Sdn. Bhd. Has use the technology to create or to do some innovation in order to fulfil the need of our daily life to make it convenient and easy to use no matter how old are you or where you go. We generate this idea among of our partners and come out with this product which is all in one lip scrub.

As we come out with the idea, we already know this product will have to compete with huge competitors such as Nivea and Vaseline. We are still doing this because we truly believe that our product has it owns specialty that others product do not have it and it shows our uniqueness.

Our lip scrub has a protective cover which is pull and push one. It is for the user and save their time. Our product really convenient to people who are concern about lip care and for people who cares about their appearance .They do not need to make their own lip scrub since we are providing them lip scrub that reasonable and affordable.

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3.7.1 DEVELOPMENT STATUS OF THE PRODUCTS  Time Frame

Project Kick-Off Business requirement Product customization Completion of Design

&

Start Date 3 January 2019 4 January 2019 20 January 2019 1 April 2019

Development Ordering of

Materials

in

5 April 2019

8 April 2019

Production Quantities Starting of Production

or

8 April 2019

11 April 2019

Operations First Release

12 April 2019 Table of Time Frame

End Date 4 January 2019 28 February 2019 31 March 2019 4 April 2019

15 April 2019

 Resources requirements We supply our coffee from a ...