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F&B RM160K UK Expansion fund required

F&B RM160K UK Expansion fund required

Project Cost: RM340,000

Amount Invested : RM180,000

Amount Required : RM160,000

Knowledge / Experience Required:
general management
strategy
finance
sale & marketing

Proposed Investor’s Role:
full time
part-time
as mentor
as consultant
others (Sleeping Partner)

Industry: restaurants / f&b

Project Stage:
early expansion

EXECUTIVE SUMMARY:

Company History:

Owned by husband and wife, British/Iban respectively. Sala Nacha Sdn Bhd is a newly launched Malaysian Food Restaurant, located in Kuching Sarawak. We are seeking investment to expand our current restaurant and set up a second branch in UK, as we see huge potential for Malaysian cuisine within the UK.

Product / Service Description:

We want to export the best dishes of Malaysian cuisine and sell them as a takeaway/delivery outlet in the UK. We already have the chef’s menu and branding. We just need the cash injection to establish the second branch.

Business Opportunity:

Our initial branch is targeting Cardiff, Wales, UK. There is no other Malaysian takeaway in this city and Cardiff is the Capital of Wales. Within this city there are more than 200 established Chinese takeaway’s. We can see that the Malaysian food we’re selling, is similar to Chinese, but with new menu additions. As a British national, having sampled our entire menu, I have complete confidence that our food will be extremely popular. In addition we have a number of Western customers at our restaurant, who also highly compliment our Malaysian food.

Revenue Model:

First and foremost, hard work. I worked 15 hours a day, 7 days a week to make the business successful. I will not fail in making this company a chain restaurant , across UK + Malaysia, but I will be happy to sell out when the time is right and the offer high enough .

Management Team:

Owner/Operator husband and wife team. Previous professional experience was in the banking/insurance sector; working as a business consultant in Saudi Arabia for 2 years, before starting a family and moving to Malaysia, for my wife to be near her parents.

Current Status:

We have invested ~RM 180,000 to-date. We have been trading 4 months. Average turnover currently ~RM 17,000 per month. However, we expect this to greatly increase with over coming months, as we begin to become more established. Our ‘worst daily taking’s’ have increased month on month. Currently small monthly profits. But we’ve already had glimpses of what the future holds in terms of potential.

Month 1-2 22% increase on previous month
Month 2-3 23% increase on previous month
Month 3-4 44% increase on previous month

With a UK branch, the monthly turnover/profit will increase significantly.

Funding Milestone:
The investment we are seeking will be used for:
– working capital
– Marketing/Advertising 20,000 delivery menus printed/distributed
– increase current seat capacity from 44 (13 tables) to 90 (total 25 tables)
– start a second branch in UK

Business Valuation:

We’re willing to sell a 49% share in our business for rm 160,000. Return of capital within 2 years. Then continued share in business of 20%. We have already invested RM 180,000. It means your investment is at an 11% discount, compared to capital already invested.

Expected Return On Investment:

Return of capital within 2 years. Then you hand back 29% of your share, keeping 20% share in the business, drawing 20% of profit monthly.

Investment Risk and Mitigation:

Business already operating above break-even month-on-month. Customer feedback is positive and we are getting a lot of repeat custom. We are working are to promote our business locally, which should increase profits and further reduce risk. At this time we consider the investment opportunity, very low risk.

The biggest risk to your investment would be how quickly we can payback your initial cash injection. Of course, it will be in our interest to pay back within 24 months, if we fail to deliver back your investment as promised either through capital raised from the business, or private equity, we will forfeit the ‘29% buy-back clause’. Essentially we need your investment as a short term loan, which we will pay back and you retain a stake in both the UK and Malaysian businesses.

Exit Strategies: See risks and mitigation. We will buy back 29% of your shares for the amount you invested, leaving you 20% of the company. If you should wish to sell your additional 20%, we would look to discuss an offer with you at the time.

CONTACT PERSON

Mathew ( morganics@gmail.com)
Company Name: Sala Nacha Sdn Bhd
Postal Address : Unit 1,
Uni-Central, Central City
Kota Samarahan Expressway
Kuching
State : Sarawak
Post Code : 94300
Country : Malaysia
Telephone : 0149966407
Website : www.salanacha.my
Mobile: 0149966407