Entrepreneurship Complete

8/13/2019 Entrepreneurship Complete

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2.0 Recognising Opportunities/Techniques for Generating Ideas

'pportunity is a fa!orable set of circumstances that creates a need for a new product,

ser!ice or business. n short, an opportunity is a chance or opening to create a new

product or ser!ice to customers or in other words, to set up a new business.

There are three different approaches to identify an opportunity. The approaches are

obser!ing trends, sol!ing problems and finding gaps in the maretplace. 7ome of the

most important characteristics of a good entrepreneur at recogni8ing opportunities are

ha!ing een obser!ation sills and high sense of creati!ity.

o!"ing a pro#!e$

Through our obser!ation and research, we found out that a significant amount of

students are a!oiding outdoor acti!ities as to a!oid sunlight or ultra!iolet rays. /ost

of the students also tra!el bac and forth to the uni!ersity by bicycle or on foot

e!eryday. hen students are under a hot sun or a great amount of ultra!iolet rays,

they will need their clothes to protect them from the harmful rays and eep them cool.

To sol!e their problems, we decided to produce clothing that comes with

protections. 'ur clothing is carefully constructed to minimise the amount of rays

that can pass through them. 'ur clothing has an a!erage protector factor -)3

!alue of 15 so that it can protect our customers from rays. The scale of )3 is

ranging from 15 to 509, the higher the )3 !alue, the higher the protection from

rays.

%e& for$ of fashion

nspired by +ypercolor, we decided to offer our clothing with a special attribute.

+ypercolor is a line of clothing that changes colour with heat. :onsumers, especially

girls will often find themsel!es wearing the clothes of same design or colour with

others. :olour(changing clothing is a great help for them to o!ercome their problems.

The color change of +ypercolor shirts is based on combination of two colors; the

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color of the dyed fabric, which remained constant, and the color of the thermochromic

dye. The colour changes at high temperatures, abo!e 2


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'.0 (easi#i!ity )na!ysis

'.1 Industry/Target *arket (easi#i!ity

The clothing industry ha!e grown and e!ol!ed as early as the existence of the human

race, from the fur clothing to the modern fashion wares. %s time pass, people4s taste

of fashion will change too, this leads to the fall out of a certain fashion and they will

follow a new fashion. The clothing industry is worth $ 2,560 trillion in 2010. The

world menswear and womenswear industry are expected to exceed around $1 trillion

by 201. ?ased on our research, we found out that @ampar will be a !ery good place

to start our business because @ampar do not ha!e any specialised store at selling

highly technology ad!anced and fashionable clothing.

Industry )ttracti"eness

'ur reason for deciding to start a clothing business is that the industry is a mature

industry. This means that it has e!ol!ed and impro!ed throughout history and this

industry will continue to grow because clothing is a need in people4s daily li!es and

the fashion is e!ol!ing e!eryday. /oreo!er, the clothing industry has low operating

costs because clothes are easy to produce and the raw materials are !ery easy to

obtain. Aastly, since the clothing industry in @ampar has little competitors, we can try

to compete for most of the maret shares in @ampar and this can sa!e the students4

time and money to loo for clothes in other places.

Target *arket )ttracti"eness

T(:hange is mostly targeting the youth maret in @ampar. Bue to the establishment

of ni!ersity Tunu %bdul *ahman -T%* in @ampar, the population of youths

ha!e increased dramatically. Couths in these ages often lie to ha!e the latest trending

clothing and some ha!e their own style of clothes that ranges from !arious designs

and colours. To further attract the customers, we allow them to create their own

designs and send the designs to us and the highest scoring design on our website will

get to be produced into shirts. The important factor that separates our products from

the others in the industry is that the clothing we sell changes colour when exposed to


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different temperatures, this is a re!olutionary clothing technology that will not only

impact @ampar but will also attract /alaysia as a whole. n addition, our clothes also

come with rays protection, this is because students in @ampar often cycle to class

and do outdoor acti!ities under the hot sun and they are exposed to rays which are

harmful when exposed in long term. Therefore, the protection from rays we offer

is crucial to their health and will sol!e their problems. e will also be offering the

option to our customers to ha!e their social websites to be con!erted into a * code

and be printed on the clothes.

An example of a QR code

'.2 Organi+ationa! (easi#i!ity

*anage$ent Pro&ess

T(:hange will be managed by 6 post(graduate students from ni!ersity Tunu %bdul

*ahman -T%*, )era campus.

These are the names and ualifications of the partners;

Dame ualification

Aow Ci 3u ?achelor of ?usiness %dministration -+ons

Can /un +ong ?achelor of /areting -+ons

7eow )ui /un ?achelor of )ublic *elations -+ons

Aee Eun Fiong ?achelor of 3inance -+ons

Aee Eian Ci ?achelor of Gntrepreneurship -+ons

Aeow Aip on ?achelor of Gntrepreneurship -+ons

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'ur partners are from the same uni!ersity -ni!ersiti Tunu %bdul *ahman, but they

are from different business bacgrounds and this different pool of talents can be

brought together to manage our business. +a!ing people with different bacgrounds

of studies can bring benefits to the business. 3or instance, finance nowledge can help

us to predict our sales and forecast the financial performance of the business and gi!e

suggestions on in!estments lie buying fixed assets or other financial in!estments.

/oreo!er, we ha!e come to a decision that the profits the business will be di!ided to

20H for the con!entional partners and 15H for limited partners. e will be hiring a

chemist to manage the chemicals regarding the colour(changing mixtures that will be

used to produce our products. e will also be hiring a programmer to design the

graphics for some of our clothes and to ad!ertise our products.

Resource ufficiency

e ha!e a number of ways to reach our customers. 3irstly, we will be using the

internet to reach out to our customers, customers can buy or submit their own design

of T(shirt through our main website, www.t(change.com. 'nce they made a purchase

through the internet, we will send a parcel to their respecti!e addresses, this will not

only sa!e us time and cost to reach out to the customers but it is also easy for the

customers to use the internet to buy our product because internet purchasing is !ery

simple and mostly e!eryone finds it easy to use a computer. /oreo!er, we will go

mobile by using a !an to reach out to the customers, we will be using a !an brought

into the business by one of our partners. e will be selling our clothes in @ampar and

poh using the !an. ith this method we can roam around freely to sell as well as to

promote our clothes in the two cities and this gi!es us the flexibility to be at anywhere

any time.

n addition, our supplier, lanicious T(shirt )rinting in poh, sees a great potential in

our product and they ha!e agreed to cooperate with us in this business by supplying

and printing our clothes for a lower price. This will gi!e us a lower cost of production,

enabling us to set our clothes at a lower price so that we will be able to attract and

gain a larger maret share for our business.

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http://www.t-change.com/http://www.t-change.com/


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Aastly, we will form a partnership with some of the well nown retail brands lie

nilo, +I/, ?rands 'utlet, 3.'.7 and +ang Ten. These companies ha!e allowed

our products to be sold in their outlets, with their cooperation, we would be not only

able to reach out to more customers but they ha!e agreed to continue our partnership

if the sales of our products are popular and they will wor with us to impro!e our

products4 uality and technology.

'.' Product (easi#i!ity

Product ,esira#i!ity

The products that we are going to sell are clothes that ha!e a few uniue

characteristics lie colour(changing when exposed to different temperatures, rays

protection and * code for personal social website page will be printed. :olour(

changing clothes first appeared in the maret in the 1JJ04s by +ypercolor. hen their

products enter the maret, many young people are attracted to their products. The

company no longer exists because of o!erproduce and poor management causing

people to stop buying their products. nspired by +ypercolor, we will try to rebuild

this idea and by adding some more features into it, we will try not to repeat its

mistaes.

%nother reason that caused us to sell this product is because we found out that many

young people encounter the problem of choosing the colour of the clothes during their

purchases. This gap in the clothing industry ga!e us an opportunity to re!i!e the

concept of colour(changing clothes. ith this uniue feature, our customers can ha!e

up to two colours in a single piece of clothing. The customers can spend lesser time

on deciding which colour of the clothes they should buy.

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Product ,e$and

e ha!e conducted a sur!ey as our primary research for our products4 demand and to

get feedbac about our products4 first impression. n this sur!ey, we found out that the

participants find our colour(changing T(shirts to be !ery interesting and they are

willing to purchase once our products are in the maret. e also did some internet

research about the colour(changing T(shirts produced by +ypercolor. They sold about

$50 million worth of colour(changing T(shirts and it was !ery popular among

teenagers bac then. %fter these results, we are confident to start up this business

because we belie!e that our products will be a hit in /alaysia.

'.- (inancia! (easi#i!ity

Tota! tartup ash

To start up this business, all six of the partners ha!e agreed to bring in eual sums of

cash amounting to */ 50000. 'ne of the partners had !olunteered to bring in a

personal !an for business use but the !an will not be registered as a business asset.

e ha!e calculated our estimated start(up cost for this business at around */ 20"0.

These costs include our website design by a website designer, !an redesign and

maintenance, office euipments, computers, networ ser!ers, air conditioners and i(

3i.

e will also be renting a room for our office and as our headuarters and this will beused to deal with our customers4 enuiries and complaints. e will also include costs

lie !an expenses, salaries for the employees, ad!ertisements and water and electricity

expenses. e ha!e totalled up the cost at about */ K010 per month

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O"era!! (inancia! )ttracti"eness of the Proposed enture

Expected profit per month:

'ur expected monthly sales will be around */ 16000. %ssuming we sell around 00

pieces of clothing a month and the a!erage price is */ 0. The expected uantity of

sales includes the sales of our partners.

%!erage price of */ 0 F 7ales uantity of 00 per month L */ 16000

Break-even Point;

e ha!e estimated our business4s brea(e!en point to be around 0.21 years.

?rea(e!en pointL 7tart(up cost M N-profit x 12 months < -operating cost x 12

monthsO

L 20"0 M N-16000 x 12 < -K010 x 12O

L 0.22 years

This rough estimation had shown us a positi!e sign for this !enture, we will be

achie!ing the brea(e!en point at only 0.22 years. This signifies that we can generate

enough profits to completely co!er up our start(up cost at only 0.22 years. /oreo!er,

our expected profit for a month is much higher than our cost, thus these numbers ha!e

gi!en us a green light for this new business for we will be maing profit rather than

loss.

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-.0 (inancia! and (unding )spects

-.1 tartup osts

e ha!e calculated the start(up cost which includes an redesign and maintenance,

'ffice euipment, ebsite design cost, nternet, Detwor ser!ers, :omputers, and

%ir(:onditioner with total amount R*20 -0.

34penses R*

an *edesign and /aintenance'ffice Guipmentebsite Besign :ostnternet

Detwor 7er!ers:omputers%ir(:onditionerTrademar *egistrationTrade Dame *egistrationAimited Aiability )artnership *egistration

'00

'050

2600

600

-500

6600

'000

600

70

600

Tota! 20-0

-.2 Operation osts

e will rent an office to deal with customers reuest with */ 1200 per month.

?esides, the remaining operating costs will include salaries, !an expenses,

ad!ertising, insurance, electric and water expenses and the other expenses with total

*/ K010 per month.

34penses osts8R*9

(i4ed costs :

'ffice *ental 1200

aria#!e costs :

7alaries an Gxpenses

%d!ertising nsurance Glectric and ater Gxpenses 'ther Gxpenses

'500

700

500-'0

;00

250

Tota! 5010

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34pected a!es

'ur expected sales in our first few months of operation will be around */ 16000.

%ssuming we sell around 00 T(shirts a wee and the price is */ 0. e are also

including the expected uantities that will be sold by our partners.

R* -0 per Tshirt 4 se!!ing -00 per &eek < R* 17000

-.' (unding ources

n the process of building this business, all six of our partners ha!e come to an

agreement to bring in an eual amount of capital. 'ne of our partners, Aee Eun 7iong

will be bringing in an additional personal asset, a !an. %ll six of the partners will

bring in eual amount of capitals each to achie!e a total capital of */ 50000. %nd

we ha!e agreed to eually share our profits and losses generated by our company.

Breake"en Point 8B3P9

e ha!e estimated our business4s brea(e!en point will be around 0.22 years.

?rea(e!en pointL 7tart(up cost M N-profit x 12 months < -operating cost x 12

monthsO

< 20-0 / =817000 4 129 > 85010 4 129?

< 0.22 years

*/ *e!enue

Total cost ?G)

Cears

0.22

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Thange

Inco$e tate$ent for the year ended '1 ,ece$#er

7ales

@ess ;ost of Goods o!d'pening 7tocs)urchases@ess; *eturn 'utwards)dd; :arriage inwards@ess; :losing 7tocs

Gross Profit

@ess : 34penses

'ffice *ental 7alary an Gxpenses %d!ertising nsurance Glectric and ater Gxpenses 'ther Gxpenses

%et Profit/@oss Before Ta4Aess; :ompany Tax -20H%et Profit/@oss )fter Ta4

201' 201-

R* R* R* R*

10000

87009

1200

86009

1200

'500

700

500

-'0

;00

250

26000

8-;009

20100

850109

120;082-159

;72

600

1'700

8;009

1600

865009

1200

'500

700

500

-'0

;00

250

-0000

81-1009

26;00

8 5010 9

15;08 '65 9

1-'12

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Thange

Ba!ance heet as at '1 ,ece$#er

201' 201-

R* R* R* R*

(i4ed )ssets

'ffice euipments-Bepreciation at 5H per annum

urrent )ssets

n!entoryBebtors)repaid %d!ertising

:ash

@ess: urrent @ia#i!ities

:reditors?an '!erdraft%ccrued 7alary

%et Aorking apita!

apita!:

'pening :apital as at 1 Eanuary

%dd; Det )rofitAess; Brawing:losing :apital as at >1 Becember

17'50

851;9

600

12-00

-'00

15000

500

16671

15100

82'1009

10671

1025

;7281';9

10671

1;7-0

815019

'500

600

'00

16200

'60

11000

15';

1;500

81-609

2255;

56

1-'12

2255;

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Thange

tate$ent of ash (!o&s for the year ended '1 ,ece$#er

ash f!o&s fro$ operating acti"ities:

:ash recei!ed:ash paid to suppliers:ash generated from operationsncome tax paid

Net cash flows from operating activities

ash f!o&s fro$ in"esting acti"ities:

)urchases of office euipments

Net cash flows used in investing activities

ash f!o&s fro$ financing acti"ities:

)roceeds from borrowingsNet cash flows from financing activities

Net increase in cash and cash equivalents

:ash and cash eui!alents at the beginning of period:ash and cash eui!alents at the end of period

201' 201-R*

26000

8;-009

16700

82-159

1'152

817'509

17'50

22'00

22'00

22'00

12-00

'-00

R*

-0000

812009

2'00

8'159

2-122

8'2709

'270

1-60

1-60

1-60

16200

2;;60

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6.0 Business *ode!

6.1 ore trategy

'ur main mission is to offer all our customers, no matter what their si8e, exceptional

ser!ice and products with our professionalism. %s a creati!ely dri!en and design

oriented group, we want to create fashion consciousness that is stylish yet affordable

to e!eryone. nspired by Threadless, we allow users of our community to submit

designs to us, which are then !oted on for a wee by other users in the community.

'nce the period ended, the design recei!es a score from 1 to 10. The highest scoring

designs get made into a T(shirt or other types of clothing. To mae the world a better

place, we will also contribute 10H of our profits to the orld ide 3und for Dature

-3. T(:hange is not only about maing profits, but we also stri!e to create

!alues for our customers.

T(:hange currently operates with a single product scope, we build our business

around one primary product, which is clothing. e stri!e to become a specialist in

this field and try to build a niche maret for our products so that we can ha!e

complete control. This is to mae management simple and in!entory easily

monitored. e may !enture into other industry or create other products after we

established a strong foothold in clothing. 'ur primary product is T(shirts but we also

offer )olo tees, *inger T(shirts and +enley shirts so that customers will ha!e more

options.

e adopt the differentiation strategy !ery seriously so that our products can be !ery

different or uniue from other pro!iders in the maret. 'ne factor that maes us

special is that our clothes can change colour due to a change in temperature. e also

allow our customers to submit their designs so that the designs can stand a chance to

get made into clothes. %nother special aspect of our clothing is that we will create

and print a * code of our customers4 social website onto a shirt upon their reuests.

%lthough an additional fee will be charged but this allows our customers to mae new

friends easily. They only need a * code scanner on their smartphones so that they

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can gi!e the * code a scan and it will bring them directly to the social website.

?esides that, our clothing is also densely and tightly constructed so that it will

minimise the amount of rays that can pass through them. 'ur clothing has an

a!erage protector factor -)3 !alue of 15 so that it can protect our customers

from rays. %nother important factor is that our customers can mae the world a

better place with each purchase because we are contributing 10H of the profits to the

orld ide 3und for Dature -3.

6.2 trategic Resources

%s T(:hange is a business #ust starting out, we will try to focus on our core

competencies so that to establish a footprint while also gaining a solid reputation and

brand recognition. %t T(:hange, we belie!e that we will always ha!e a

differentiation(based ad!antage against our competitors. %s mentioned se!eral times

before this, our clothing comes with colour changing ability thans to some mixtures

of chemicals. ?esides that, customers who lo!e socialising through social websites

can submit their reuest to ha!e a * code of their social websites printed on the

clothes as well. :ustomers are also able to wear their own designs through our online

!oting system. n addition, our clothing also comes with rays protection with our

clothing being rated at an a!erage of 15 )3. %s our business is based at @ampar, a

town filled with great opportunities and students who e!eryday tra!el to classes under

hot weathers, cool designs and uniue abilities as well as rays protection are

needed by them. e set our priority at creating !alues for our customers by fulfilling

our customers4 needs.

%s a new !enture, our strategic assets are !ery limited but we do our best at getting

the high ground against our competitors. 'ur website remains operational for the

whole year as it does not need any personnel to eep an eye on it as long as the

internet connection is functional. This allows customers to place their orders at

anytime. ?esides that, one of our owners also brought in a !an so that we could sell

our clothing by mobile. This is to allow customers who do not want to order from us

online to reach us anywhere in )era as long as they pay attention to our roadmap.

Bue to our !ery limited start(up capital, we are unable to obtain any manufacturing

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machinery but we will try to acuire a manufacturing plant in the future once our

re!enues allow us. e will be partnering with a local manufacturing company to

produce and print our clothing for the time being. n addition, we will also supply our

clothing to some other clothing companies such as 3.'.7, +ang Ten and nilo. t is

also worth mentioning again that we will be contributing 10H of our profits to 3

as an act of indness. This will also allow our customers to do a good deed by doing

the world a fa!our with each purchase from us.

The mportance of our business models reflects clearly our mission and guidelines in

producing our products. De!ertheless, our setup firm mainly focuses on the niche

maret, special features aimed at a satisfying specific maret needs. +ence this

concept falls onto the attributes of our consumers and due to a certain close(up in

trends, our T(:hange products are able to ser!e its purpose.

6.' Partnership %et&ork

The nature of our firm is a partnership structure and our partnership is made up of 6

partners whom in!ested in the business. +owe!er, as our start(up capital for this

business is relati!ely small and for the moment it is difficult for us to !enture into

!arious forms of partnership networs. 7ubseuently, our low resources prohibit T(

:hange to be able to own a manufacturing plan and it reuires future in!estments

from other parties and long(run profit maximi8ation before we tae this into

consideration. %t the moment, the partnership networ that we ha!e is with our

supplier, which is a clothing factory that produces customisable T(shirts in poh. e

also supplied some T(shirts to other retail shops so that we can increase our clothing4s

popularity.

'ur main supplier or manufacturer for T(:hange is lanicious, it is a T(shirt factory

which will be printing and supplying with the products. The reason that we chose this

factory to be our supplier is that the cost is lower. 7econdly, our materials for maing

the colour(changing T(shirts are complicated and reuire a handful of silled worers

to correctly match the compounds of our uniue T(shirts. Thirdly is the location of

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their factory is relati!ely close to our office, which also means that it is easy for our

suppliers to deli!er the finished products to us. 3or instance, ha!ing a !ast networ of

clients is an ad!antage, but otherwise ha!ing a supplier who is able to deli!er our

exact orders on time and in great uality is a wise choice. 'ther benefit of choosing

this reliable supplier is that there are no minimum orders pre(reuisite. The other

partnership networ that we ha!e is with other notable clothing retail lines such as

3.'.7, +ang Ten and nilo.

:on!ersely our customers who order online are also able to browse through our T(

shirts collections album. The */ 0 colour(changing T(shirts with * code is

custom made so it is reuired to pre(order by customers before it can be printed on the

shirt. e do not reuire warehouse storage to store most of our products because we

only order from our supplier after orders are made by our customers. n a business

concept, a company that has a low in!entory turno!er means that the sales are poor

and by ha!ing large uantity of in!entories is !ery risy based on se!eral factors. e

will be using the deli!ery ser!ice of B+A courier ser!ice to deli!er the goods to our

customers. %ll orders that are placed on the web are able to en#oy a free deli!ery

ser!ice. 'ur free deli!ery ser!ice is currently only a!ailable for est /alaysia orders

and other orders to foreign countries or Gast /alaysia will sub#ect to additional

charges.

6.- usto$er Interface

e are trying to establish a foothold in the clothing industry first as we are a new

business. e stri!e to build a niche maret for our products so that we can become a

specialist in the field. Diche mareting is the subset of the maret which a specific

product is focusing on. t is also a small maret segment. 'ur products are currently

a!ailable for people of any ages. e are currently focusing on the students around

@ampar because most of them need clothing with protection but we also offer our

clothing to e!eryone as they can order from our website. 'ur colour(changing

characteristic may also be able to attract youngsters only. 'ur * code technology

may also be able to attract people who are !ery acti!e at their social websites only.

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The next highlight is that we ha!e a !an that is mo!ing about from region to region to

promote and sell our products. The idea of this T(:hange /obile is to help to con!ey

our fashion sense especially towards the younger generation. T(:hange /obile is a

custom fitted truc which has all the information about our T(shirts and other type of

clothing we offer. e belie!e that through this engaging method we will be able to

promote and ad!ertise our products greatly. There are also promotional acti!ities for

our customers to participate in. T(:hange /obile will mainly go around cities to

promote our products. 7ome of our e!ents also include a lucy draw session,

participants stand a chance to win home our T(shirts or !ouchers to use at our website

or at other retail shops selling our products.

:ustomers can easily access our website at anytime as long as they ha!e internet

connection. 3urthermore, with this online purchasing, we can eliminate some

unnecessary costs so that we can lower our prices and increase our re!enues. The

ideal ad!antage enables our business to ser!e the customers with great !alues

anywhere and anytime. n addition, customers are able to download the latest fashion

and design of our products at our website easily instead of ha!ing brochures mailed to

them or e!en ha!ing countless of e(mails spamming. :ustomers who order from us

online can sa!e their selections in their accounts so that they can re(order from us next

time easily. e offer se!eral payment methods such as debit card, credit card or ban

in to our customers so that it will be con!enient for them to complete the transactions.

'ur payment networ is secured and safely monitored so that we can guarantee our

customers4 safety and pri!acy. n addition, we also offer membership cards or special

accounts for customers who spent abo!e */ 150 in a single transaction. These

customers are eligible for discounts and promotions in their future purchases.

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'ur pricing structure will be constructed in a table form so that it will be easier to be

re!iewed.

o!ourchanging &ith R code

)rice; */ 0 -T(shirt, */ 50 -)olo, *inger, +enley

P@ids and :ouple 7ets may be added in the futureP

Garly ?ird )rice; */ 5 -)olo tees only

:ustomisable :olours; *ed, 'range, Cellow, &reen,?lue, iolet, &rey, hite, )in -%ny combinations oftwo colours

7i8e; @M'ther GMEapan -7, /, A, FA

o!ourchanging &ithout R code

)rice; */ >0 -T(shirt, */ 0 -)olo, *inger, +enley

P@ids and :ouple 7ets may be added in the futureP

Garly ?ird )rice; */ >5 -)olo tees only

:ustomisable :olours; *ed, 'range, Cellow, &reen,?lue, iolet, &rey, hite, )in -%ny combinations oftwo colours

7i8e; @M'ther GMEapan -7, /, A, FA

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7.0 3thica! and @ega! Issues

7.1 Interna! @ega! Issues

%s the business will be founded under the limited partnership form that consists of six

partners, we ha!e come up with a founder agreement to a!oid any issues that will

affect the benefits of any partners in the partnership.

n the founder agreement, which will also act as the partnership agreement for

external legal issues for the business, we ha!e agreed to be founded under limited

partnership that will consist of two general partners and four limited partners that

in!ested into the business. )artners who will be facing higher liabilities will be gi!en

a higher portion of shares on the profits.

The net profit made in the business will be shared in the proportion of 20H for the

general partners and 15H for the limited partners. 3or the !ehicle that brought in by a

partner for business use will not be accounted as an asset for the firm. +owe!er, the

owner of the !ehicle will be compensated through the bonus for petrol fees,

maintenance fees and the other fees that will used to maintain the operation of the

!ehicle pro!ided that the owner pro!ide enough e!idence such as in!oices and receipt

that used on petrol and maintenance.

Aastly, we also agreed to sign a non(disclosure agreement that will help to protect our

trade secret and the way to manage our firm if there are any partners that wish to part

ways from the partnership.

7.2 34terna! !ega! issues

Registration of Business

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n order to establish a business, there are se!eral procedures that are related to the

legal issues that are reuired to be performed by the owners of the business in order to

conduct business without breaing any laws regulated by the go!ernment.

e will file a registration of business to the 77/ -7uruhan#aya 7yariat /alaysia or

:ompanies commission of /alaysia. The purpose of the registration is to mae our

business to be able to operate legally. 'ther than that, registering a business name will

pro!ide ad!antages such as safeguard of the business name. This will help to a!oid

any confusion among the customers toward the business4s goods and ser!ices.

The procedure of registration will e as the simplified flow chart as follow:

To register a business, we ha!e decided to use T(:hange as our business name and the

business will be registered as a limited partnership. Then, we will complete the 3orm

% -%ppendix 6.1 and e!ery partners will sign the completed form in order to submit

the form to the authority along with the personal documents of partners.

Registration of Trade$ark

%fter the registration for the business, we will proceed to the application of our

trademar. *egistering trademar is almost similar to the registration of business. The

trademar will help the customers to differentiate our products and to protect our

business from any other businesses that could use our brand name, logo or e!en the

pacaging of the products.

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A sample of our logo

'ther than that, trademar will also play a great role in ad!ertising as trademar will

help the customers to remember our product. ?esides that, trademar will also ser!e

as a legal e!idence for the ownership of goods. 'ur trademar will be registered at

ntellectual )roperty :orporation of /alaysia -/y)'. The registration of trademar

in!ol!es filling 5 sets of T/5 form -%ppendix 6.2 from /y)' and the submission

of the form along with the fees reuired.

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.0 ritica! Risk (actors

%s a newly established firm, there will be some critical ris that usually be ignored by

the management of the firm because of the lac of management experience. 3or the

first critical ris factor of a new firm, recent and fast paced establishment of the firm

could mae the management more result and goal oriented instead of impro!ising

through finding flaws in planning, controlling and organi8ing.

'ther than that, operating the business mainly through the internet could be a critical

management ris factor. 3or a business that start(up as a small business firm lie us

could face a shortage of resources such as man(power and stoc if the business

managed to boom through the internet, small business firm lie us often not euipped

with the complete system to manage sales and ordering could cause a sales outflow as

the firm couldn4t deli!er what consumer demanded. ?esides that, operate through

internet could mae the control of the product more difficult because it is impossible

for the management to o!ersee the whole process of manufacturing to deli!ering of

product to customers.

The next critical ris factor that might be faced by our firm will be the nature of our

product. %lthough our product concept is to pro!ide different, fresh and feature

oriented !alue that other firm in the same industry could not pro!ide at this moment,

but the lac of ad!ertisement and the high number of close substitute could mae the

product stay QsilentR in the maret. 'ther than that, there will always be chances that

our product concept to be intimated by other large firm with a lot of resources if the

product is debuted successfully in the maret.

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Aastly, the critical ris factor we might face is the flaws in information security. %s a

small firm that reuired outsourcing from other firm in manufacturing and material

supply, the ris of the product information lea before the release of the product. 3or

example, other firm could send their employees to wal around and obser!e the

change in new technology or new product.

Entrepreneurship Complete

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