Entrepreneurship

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- Organizational feasibility

The next two sub-sections will discuss the non-financial resources of Classical Music Café.

- Management Prowess

The Classical Music Café is majority-owned by Ms. Rachel and Mr. Danny.

Ms. Rachel holds a Bachelor's Degree in Business Studies. She worked several years for Vees Marketing Sdn Bhd as a marketing consultant. Besides, she also finish her Grade 8 piano and violin which is certified by ABRSM. She had her private music school but two years ago, she sold it profitably.

Mr. Danny has a Bachelor's Degree in Management. He worked as a manager in Prego KL for five years. He also works as part time pianist in La Bodega Restaurant.

The founder is passionate about starting a music café because she has strong interest in music. Research has shown that background music helps improves mood and reduces stress (Bradley 2015). Besides, statistic indicated that 80% of people like to hear background music when they eat out (Daniel 2015).

- Resource Sufficiency

The food and beverage provided in the café will be supplied by G & K Food Sdn Bhd. Two permanent baristas and a chef will be responsible of them. [pic 4]

(Gkfood.com.my, 2016)

An antique piano will be sponsored by Ms. Rachel from her previous music school. Ms Rachel, Mr Danny as well as the other two hired pianist will take shift playing classical music. Customers that are highly skilled in playing piano are also allowed to perform in the café.

[pic 5]

[pic 6]

Self-service is conducted in this café and customers are allowed to pay using cash only at the counter. A skilled manager will supervise all the procedures. His/her duties include handling the workers, ordering stock and more.

Facebook will be the main site that the café use to communicate with the customers. Statistic shows that 45.5% of the population in Malaysia are Facebook user (Mahadi 2013).

- Financial feasibility

A preliminary financial assessment of Classical Music Café is discussed in the next three sections.

- Economics of the business

Calculation of Start-up Costs, Cash Flow and Profits for a cash retail business

Forecast (end of month)

0

1

2

3

4

Cash INflow: Cash Sales (1)

35,000

40,000

45,000

50,000

Returnable Deposits

5,000

Renovation

100,000

Furniture & Fittings

18,000

Equipment (Kitchen equipment + Machines)

70,000

Tax & License - Business registration fees (RM60)

- Solicitor’s fees (RM3,000)

- Domain name registration (RM100)

- Licences and permits (RM150 for food license)

- Food handling certificates (RM 150)

3,460

Pre-Operation expenses (advertising, etc) - logo (RM380) - website (RM499) - brochures (RM515 for 500 A3 double-sided brochures) - business cards (RM73 for 500 pieces) - signage (RM5,000) - newspapers (RM2,000)

8,467

Pre-Operation stocks (Food+Beverage ingredients)

10,000

Others (Franchise fees etc)

-

Start-up costs:

214,927

Forecast (end of month)

0

1

2

3

4

Operating expenses:

Employee salaries

10,000

10,000

10,000

10,000

Rent

9,000

9,000

9,000

9,000

Utilities (telephone, electricity, water etc)

4,000

4,000

4,000

4,000

Transport (musicians transport fee allowance)

1,500

1,500

1,500

1,500

Insurance

750

750

750

750

Advertising & Promotions

1,200

1,200

1,200

1,200

Maintenance & Upkeep

1,500