CAPITAL.MY

Alternative Funding Sources for Businesses

Exclusive National Distributor (Malaysia) seeking RM195K for European Ceramic Coating Manufacturer

Exclusive National Distributor (Malaysia) seeking RM195K for European Ceramic Coating Manufacturer

Project Cost: RM200,000

Amount Invested : RM5,000

Amount Required : RM195,000

Knowledge / Experience Required:
strategy
sale & marketing

Proposed Investor’s Role:
as mentor
as consultant

Industry:
engineering
trade
consumer goods
industry products

Project Stage:
start-up

EXECUTIVE SUMMARY:

Company History:

A well known Ceramic Coating Manufacturer from Europe is looking to expand their market to Malaysia and after a few months of discussion with the company representative we finally manage to secure an agreement to become the sole distributor for their product in Malaysia.

Product / Service Description:

The product varies from personal use to industrial grade coating. Instead of just focusing on industrial market & services, we are going to bring in personalize canned for consumer market, thus opening up more opportunity for the expansion of the business. We are planning to start small by marketing our product in Kuala Lumpur and Selangor first and pick up from there and supply the whole nation.

Business Opportunity:

Ceramic coating services (especially for vehicle) in Malaysia is proven to be expensive and profitable, and as little to none consumer canned product are available to the masses. Our product will be the pioneer for this business in providing a consumer canned product for the masses.

Revenue Model:

The coating product comes in various size, from as big as 1000 litre barrel for industrial market to as small as 100ml size for consumer market. We are going to push for both market segment, to supply the product to the industrial segment and to the DIY stores nationwide such as ACE Hardware, Home-Fix, Tesco, Giant, as far as the Hardware store in your neighbourhood.

Management Team:

Currently the company is in start up phase, we are planning to hire a team of 7-10 employees within our first year of operation to run the business.

Current Status:

We already manage to get the agreement as the sole distributor. Basically we have all ground work covered, and all that needs to be done to proceed is to secure the financial part of the business and rent out a location for everything to start.

Funding Milestone:

1. RM35,000 is to be used as start-up expenses
a. Office/Warehouse lease deposit
b. Business/office supplies
c. Computer system
d. Legal business formation

2. RM85,000 is to be used as start-up inventory.
a. Product
b. Product transportation (van)

3. RM20,000 is to be used as marketing fund i.e; trade show, online marketing etc.

4. RM60,000 is to be used as cash reserve for company overhead cost for the first 6 months of operation.

Business Valuation:

Total equity are based on negotiation between us (company), with you (investor). our proposal are to give a certain amount of profit sharing from overall sales. further negotiation are welcomed

Expected Return On Investment:

We expect to have ROI by the end of 1.5 year’s operating time. This is based on minimal sales calculation, though based on prior experience the company should be able to meet this in a shorter timeline.

Investment Risk and Mitigation:

Due to the small amount required as opposed to other businesses and the nature of the business which products have a long shelf life, the investment risks are significantly lesser. Added to the fact that the selling of materials are a definite, there are plenty of mitigating factors and easy exit strategies that benefit the form of business should there be financial troubles.

Exit Strategies:

Upon request and agreed condition between the investor and the company, the investor can sell back their shares to the company or other interested party at the agreed current market price.

CONTACT PERSON:

Mohamad Arif
Petaling Jaya