Project Cost: RM4 million
Amount Invested : RM100,000.00
Amount Required : RM3.9 million
Knowledge / Experience Required: finance
Proposed Investor’s Role: nil
Project Stage: start-up
Q – Hak Technologies Sdn Bhd was formed in 2007 by a father and son team and is planning to commence business in first half of 2014. I have been involved in several types of business, supplying goods and services over the last thirty five years and that includes transportation, warehousing and logistics, marketing of building materials and building products, marketing of services such as construction and advertising and most recently, educational programmes. All these while, I have been searching for a business where, instead of trading curses, I look for one that trades compliments everyday and now I have found one and this is the business. My business allows everyone to put their hearts, souls and passion into it because it deals with something that eventually produces something that everybody is looking for and that is, good music and fashion. Needless to say, if we are successful, everybody can share the rewards together.
Product / Service Description:
LADDER®, JEWEL®, CERIATONE®, KNAGGS GUITARS®, BUZZ FEITEN®, custom made handwired tube guitar amplifiers, themed jewellery, custom made, high-end guitars parts, components & accessories, guitar tuning, set ups and repairs, pianos and keyboards, drums, brass and woodwind instruments, light & sound system service providers. Dealers/agents for Knaggs Guitars (USA) and Ceriatone Amplification (Malaysia).
This business is extraordinary and it is a global business and we are looking at an annual revenue of US$6 million with a net profit of between 25 and 35 %.
A new development with Knaggs Guitars are the talks going on between us to design and build Knaggs boutique custom hand-made tube guitar amplifiers to be known as Knaggs Amplifier where most of the assembly shall be done here and finishing shall be done in Greensboro, Maryland, where Knaggs Guitars is located. This way the “Made in USA’ label can be applied on the products. This would be a very interesting venture as it provides synergy, combining Knaggs name and our expertise.
Knaggs Guitar is the next big name in high-end custom guitars. This business is extraordinary, has great potential, and it is a global business and we are looking at an annual revenue of US$6 million with a net profits expected to be in the range of between 25 and 35 %. This is an opportunity not to be missed and the business can put Malaysia on the world map in this industry. Our tube guitar amplifiers can match the best in the world but will cost less than them. No one has ever come out with some of the products we plan top offer especially for guitar parts and accessories made of gold and silver.
Revenue projected is US$6 million annually and net profit is projected to be around 25% to 35 %. Knaggs Guitars USA, as dealers offers a margin of between 10&% and 15% depending on models. We also act as ‘dropshippers’ for Knaggs Guitars USA. Taking advantage of lower costs and skilled workforce, guitar parts, accessories and others will be made here and sold to the US, Europe and other parts of the world at no less then 40% gross profits. Even after adding this, the price offered can still be cheaper than if the products are made in the US or supplied by our US competitors.
Management Team: Me and four others.
Current Status: Start up, already spent RM100,000.00 over a period of 5 years.
Funding Milestone: Funds are mainly to be used as working capital, to cover rental, renovations, purchasing of assets, stocks, website, etc. Business will be self-financing after that.
Business Valuation: 30% or RM1 million) – this includes goodwill and other aspects of the business.
Expected Return On Investment: Minimum 10%.
Investment Risk and Mitigation:
Almost negligible – all stocks can be sold, guitar parts and accessories old stock and raw materials can be fully recycled as they are made of silver and gold. As our main products, i.e. guitars and amplifiers are all custom ordered, all stocks for guitars and amplifiers produced upon confirmed orders only. Customers pre-pay in full before delivery.
Anytime after completion of one financial year – take back the 30% invested plus interest and the equity holding net profits at the time of leaving. (Profits are calculated annually at the end of the accounting period).
Hussaini Abdul Karim ( email@example.com)
Company Name: Q -HAK Technologies Sdn Bhd
Postal Address : No. 5 Jalan Ferum Empat 7/31D, Seksyen 7
State : Shah Alam
Post Code : 40000
Country : Malaysia
Website : still under construction