Manpower Management second stage expansion plan

Manpower Management second stage expansion plan

Project Cost: RM2.5mil

Amount Invested : RM1.0mil

Amount Required : RM1.5mil

Knowledge / Experience Required: general management

Proposed Investor’s Role: full time

Industry: tourism / hospitality; restaurants / f&b

Project Stage:
second stage expansion
merger & acquisition

EXECUTIVE SUMMARY:

Company History:

WE HAVE BEEN IN THE MANPOWER BUSINESS SINCE 2007 AND WE SUPPLY HIGH -END STAFFING TO FIVE STAR HOTELS AND HIGH END RESTAURANTS IN MALAYSIA, WE CURRENTLY HAVE A WORKFORCE OF 130 PERSONS AND WE HAVE OBTAINED APPROVALS FOR AN ADDITIONAL 150 PEOPLE . AT ONE STAGE WE USE TO HAVE 280 PEOPLE AND MANY HAVE GONE BACK AFTER WORKING FOR 4 YEARS AND ABOVE. OUR INCOME WHEN WE HAD 280 PEOPLE WAS AROUND RM550,000 A MONTH.

Product / Service Description:

In the last 6 months we have invested in an Manpower Agency in the Philippines so as to tap into the middle east market since we have the expertise and know how . the investment needs another RM200,000 or so to open another branch in Manila in addition to the one in Cebu. we expect the business to contribute at least between RM 500.000 TO RM 1 million IN PROFITS ONCE FULLY OPERATIONAL .

Business Opportunity:

THE MARKET FOR US IS BIG AS WE HAVE EXISTING CLIENTS IN MALAYSIA AS WELL OVERSEAS WHO WOULD REQUIRE FILIPINO WORKERS WHO ARE WELL TRAINED AND SKILLED.

Revenue Model:

OUR REVENUE WILL COME FROM THE MALAYSIAN OPERATIONS AS WELL AS PHILLIPPINES OPERATIONS.

Management Team:

WE HAVE 3 DIRECTORS IN THE MALAYSIAN OPERATIONS AND 5 IN THE PHILIPPINES OPERATIONS.

Current Status:

IN THE 2013-2014 OUR REVENUE WAS AROUND RM4.5 MILLION A YEAR . THIS YEAR ITS SHOULD BE AROUND RM 3.6 MILLION AND ONCE WE GET THE NEW STAFF IT SHOULD HIT RM 5 MILLION OR MORE. THE PROFIT MARGIN CURRENTLY IS AROUND 25%.

Funding Milestone:

WILL USE THE FUNDS TO PAY FOR LEVIES FOR NEW WORKERS AS WELL TAKE OUT THE INDIRECT INVESTORS WHO INVESTED RM300,000 IN THE PHIL. SO THAT WE HAVE FULL CONTROL OF THE RECRUITMENT AND MARKETING PROCESSES OF THE COMPANY.

Business Valuation:

WE ARE WILLING TO HAND OVER A 30% EQUITY FOR THE MALAYSIAN OPERATIONS AND WE WOULD REQUIRE AROUND RM1,000,000 FOR THE FOLLOWING:-
a. to take out the existing investors in the phil as they want to pursue other opportunities. this would require RM300,000
b. To complete the Phil operations so that we can start marketing overseas. around RM200,000 would be required.
c. working capital to fund new approvals and operations in Malaysia RM500,000.

Expected Return On Investment: the ROI is expected to be around 12% for the first six months and there after around 25-30%.

Investment Risk and Mitigation: risk factor is low as we have have had the expertise in this field for over 8 years.

Exit Strategies: the investor can exit the business within 2 years because the need for Manpower keeps increasing every year.

WILAYAH PERSEKUTUAN
MALAYSIA

CAPITAL.MY