TECHNOLOGY ENTREPRENEURSHIP (ENT600)

TECHNOLOGY BASED BLUEPRINT REPORT

NOVA SMARTSCALE

FACULTY : ARCHITECTURE, PLANNING AND SURVEYING

PROGRAMME : BARCHELOR OF BUILDING SURVEYING

SEMESTER : 05

GROUP MEMBERS : 1) HAIZAD HAFIZ BIN HAIRUDIN

(2019695188)

2) NORKHALEEDA BINTI ZULKIPLI

(2019601886)

3) NUR IZZAH ATIRA BINTI MOHD AKBAL

(2019608276)

4) NURNADIA SYAKIREEN BINTI MOHAMED ROSLI

(2019695592)

GROUP : AP229 5A

LECTURER : PM DR ROHANA NGAH

SUBMISSION DATE : 25/01/2021

 TABLE OF CONTENT
1.0 Executive Summary 1
2.0 Product Description 2
3.0 Technology Description 7
4.0 Market Research and Analysis 8
4.1 Consumers 8
4.2 Market Size and Trends 10
4.2.1 Market Size 10
4.2.2 Total Potential Purchase Monthly and Market Size Per Year 11
4.3 Competition and Competitive Edges 12
4.3.1 Competitive Analysis 13
4.4 Estimate Market Share and Sales 14
4.5 Marketing Strategy 15
5.0 Management Team 17
5.1 Organizational Chart 17
5.2 Key Management Personnel 18
5.2.1 Background of Linked Innovation Partnership 18
5.2.2 Roles and Responsibilities 20
5.3 Management Compensation and Ownership 22
5.4 Supporting Professional Advisor and Services 23
6.0 Financial Plan 24
6.1 Start-Up Cost 24
6.2 Working Capital 25
6.3 Start-Up Capital and Financing 26
6.4 Cash Flow Statement 27
7.0 Project Milestones 28
8.0 Conclusion 30
9.0 Appendices 31

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1.0 Executive Summary
In the present era, technology is fully used and utilized in industry for the convenience of
the people in their daily lives. Technological development is growing rapidly and so does
the innovation. Innovation of a product is a new method of fixing an issue that large number
of consumers have. There may be no products on the market to deal with the problem at
all, or there may be other products currently on the market which deal with it in a different
way. On the same side, product innovation is the development and implementation of a
new or upgraded version of existing products.

The idea of creating and producing a smart scale weight called NOVA Smartscale
is to bring convenience to consumers specifically to those who care a lot about the health
of their body. The invention of this product aims at combining applications of advanced
technology, to design a smart weight control system and smart weight scale for measuring
the body weight, to provide convenient, instant, and accurate body weight measurement
service to the consumers. The smart weight management system is designed which
includes a smart weight scale, a mobile application that linked with the smart scale, and a
cloud server. The smart weight scale and the mobile application is designed to calculate
user’s body weight and collecting user information, to achieve sensing and monitoring for
target users in various application scenarios.

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2.0 Product Description
A smart body scale is an electronic bathroom scale that measures weight and other
measurements of body composition and then sends it wirelessly to an app or online
service that records the results automatically. Body fat, body water, and body mass indices
are usually included in these other metrics (BMI). Some of the metrics are readings, while
others such as BMI, are predictions based on equations that often take height and sex
into account.
This smart scale's main purpose is to monitor weight and other measurements in
an app that allows users to see their weight history changing over time. Since it makes
monitoring simple, it can help people monitor their health initiatives. As the monitoring is
done automatically, no one has ever had to write down the weight-in data. The only thing
people need to do is make sure that the scale's batteries are still working well.
With just one detection, this smart NOVA production scale will allow individuals to
calculate their body mass index (BMI), body fat, body water, muscle mass, and body
weight straight away. It can be combined and linked via an application with other
smartphones and smartwatches. Created to include data storage and information
processing and output programmes. As a result, the intelligent weighing scale will also
submit the data to smartphones and smartwatches as a health study. The information can
be accessed via smartphones and can also be displayed on smartwatches.
The smartwatch user can know from the weight-in data whether running or
exercising for the day is adequate or not for the body. The smart scale's battery power
can also be tracked by smartphones and smartwatches and the scale itself. If the battery
of the smart scale is in a weak state, some of the features on the scale will turn out red. It
will send a warning that the devices should be charged to prevent the consumer from
resulting in inaccuracy.

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 Figure 2.1 Product Size

Figure 2.2 Product Features and Colours

With a net weight of 1.5kg, with a tempered glass panel, the NOVA scale comes
with an elegant and slim build. The scale has four colour variations, including pure white,
elegant black, light green and pastel pink. With a scale size of 300 mm x 300 mm, it is
fitting to be placed anywhere within a home. At the middle top of the scale, the device also
comes with one LED display, which will reveal weight measurements, percentage of
battery and many others.

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 Figure 2.3: Colour Choices of The Smart Scale

Figure 2.4: USB Type-C Connection

The smart scale is built with a rechargeable lithium-ion battery with a capacity of
372 mAh/g that can hold up to a week with a full percentage battery charge. It can be
connected with a universal USB type-C port which can easily be found. Lastly, the main
features of the scale are that it can be sync or connected with mobile devices via Bluetooth
or Wi-Fi with NOVA application that can be downloaded for free through the Google apps
store.

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Figure 2.5: The Scale and The Mobile Application

Figure 2.6 Nova Apps on Mobile Devices

Figure 2.7 Weight Tracker

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 Figure 2.8 Measure Hydration

NOVA application is created to sync the smart scale with user’s mobile devices
such as a smartphone or a smartwatch. The apps are functioned as data storage and
programs to process and output the data. NOVA Smart Scale will automatically or
manually send weight stats to the apps. In addition, the apps help user to keep their calorie
intake in check by logging meals with the barcode scanner, quick calorie estimator and
meal shortcuts. Users will be able to monitor their weight from time to time through their
devices. This can also help user to be more consistent in achieving their weight goals.

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3.0 Technology Description
This NOVA SmartScale applied some technology to be able to display the features coming
with this scale. In order to measure weight, there is only one sensor, namely a weight
sensor or a load cell. The sensor is more prominent for measuring weight in weighing
systems. Weight sensors are known for their accuracy and consistency in delivering
accurate weight values, so these sensors can be used to design weighing systems.
A load cell or weight sensor is a kind of sensor. The working principle of the weight
sensor depends on converting the load into an electronic signal. The signal can be a
change in voltage. According to the load and the current of the circuit used, otherwise the
frequency. Theoretically, this sensor detects changes within the physical stimulus, such
as force, pressure, or weight, and produces an output compared to the physical stimulus.
Therefore, for a specific stable load (otherwise the weight), this sensor can provide an
output value that is comparable to the weight.
With the help of sensors using bioelectrical impedance under the feet, it can help
to measure the body fat. When you step on the scale, a small current flow through your
legs and through your pelvis, thereby measuring the degree of body fat resistance. The
sensor in the scale then measures the resistance level encountered when the current
flows back to the other leg. This sensor also helps to measure others feature such body
water and muscle mass.

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4.0 Market Research and Analysis
In general, market research is a qualitative and quantitative evaluation of the market. The
market research also observes the scale of the market in terms of value and volume,
multiple consumer segments, competition, market trends, and barriers to entry and
regulation. In other words, market research is understood to be an individual business
strategy or a business strategy as a whole. The aim is to help new entrepreneurs of all
sizes to make informed business decisions, especially on related strategies.
The market survey for this product was carried out from 1st December 2020 to 7th
December 2020 through the google form platform. Responses from 103 respondents were
recorded and analysed for the improvements to our product. All the information from the
survey that has been carried out is included in the Appendices. From the survey conducted,
our group has decided to develop the NOVA SmartScale with automatic weighing scales
that have other interesting features such as to measure the foot's size. This is according
and in consideration with the responses from the respondents that have suggested other
interesting features to be added for the product.

4.1 Consumers

According to Market Business News, the customer or target audience is an individual or

company that receives, consumes, or purchases a product or service and can choose
between various products and suppliers. The main purpose of all commercial companies
is to draw buyers or clients and to make them buy what they have on offer. They're just
trying to persuade them to keep coming here. It is at the heart of marketing that we have
a clear understanding of what the consumer wants and values. They are also the target
audiences for the product of the companies.

The target market described as a community of customers with needs and wishes
that can be fulfilled by the company through the supply of a product or service. The goal
of the segmentation of the market is to allow the company to meet the needs and desires
of the customers it has chosen with the limited resources it has. The target market may
also be segmented or broken down on the basis of various parameters or variables such
as age, geographical areas, lifestyle, hobby, and interest.

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 •Age
•Gender
Demographic
•Number of adults
Analysis
•Occupation
•Income level

•Personality
•Attitudes
Psychographic
•Interests
Analysis
•Lifestyle
•Values

Figure 4.1 Demographic and Psychographic Analysis

Based on Figure 4.1, the analysis for demographic and psychographic was done to identify
the target market for NOVA SmartScale. From the analysis, the potential market for NOVA
SmartScale can be from the male as from the findings it shows that 58 percent of the
respondents are male and the majority of youngsters that age between 15-24 years are
interested with the smart scale. And from the analysis, it shows that the majority of the
students choose to have this product and also the majority of them are a fitness junkie as
almost 55 percent votes themselves as a fitness junkie.

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4.2 Market Size and Trends

Malaysia's population is expected to be 32.7 million in 2020 compared to 32.5 million in

2019, with an annual growth rate of 0.4 per cent. The fall in population growth is due to a
drop in the number of non-citizens from 3.1 million (2019) to 3.0 million (2020). This is in
line with the closing of our national borders and the return of aliens to their respective
countries during the Migration Control Order following the spread of the COVID-19
pandemic worldwide. The growth rate of people remained constant at 1.1%, with the
population rising from 29.4 million in 2019 to 29.7 million in 2020. The smart scale market
volume is connected to downstream demand and the global economy. As there will still
be some volatility in the global economy in the years to come, the growth rate of the smart
scale market will not stay that high. But it is likely that the smart scale market is still
promising.

4.2.1 Market Size

Table 4.1 Market Size

Market segment Population Target Market (%) Target Market

Youth 1400000 1 14000

Adult 1600000 0.5 8000

TOTAL 3,000000 50 22000

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4.2.2 Total Potential Purchase Monthly and Market Size Per Year

Table 4.2 Total Potential Purchase Monthly and Market Size Per Year

Market segment Target Market Potential purchase Total potential

(RM) purchase monthly
(RM)

Youth 14000 100/month 1400000

Adult 8000 100/month 800000

TOTAL 118000 200 2200000

Market size per year = RM 2200000 × 12

= RM 26,400,000

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4.3 Competition and Competitive Edges

Competitors are one of the compulsories in business world. The existence of competitors
may challenge every business with the same business. By having competitors, it actually
will help one business to be more creative and innovative which it will give inspiration and
will improve our business. The competitors must be in the same category. The most
important thing in keeping the clients is to understand their want and need better than any
competitors do. It is important to us to get feedback from customer and improved our
service from time to time. Competitive refers to advantages over competitors gained by
offering clients great value, either through lower price or providing more benefits than just
justify higher prices. Competitors should come from the same category of business who
offers a similar substitute product or service to some target market. From our market
research, we found that there are few companies who provide the same products with
same features as ours. Hence, we are supposed to have a good competition with those
competitors. This can be done by making an analysis about their company and compared
with our company for improvement.

Competitors

Eufy Smart Scale Garmin Index

Figure 4.2 Competitors

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4.3.1 Competitive Analysis

Table 4.3 Competitive Analysis

Product name Eufy Smart Scale Garmin Index

Picture

Price RM 182.14 RM 607.08

Features Smart Scale with Bluetooth, Measure weight in pounds, kilograms
Large LED Display, 14 and stones. Measure BMI, Body Fat,
Measurements, Weight/Body Skeletal, Bone Mass, Body Water
Fat/BMI/Fitness Body Percentage. Weight-Only Option,
Composition Analysis, Auto Multiple Daily Weigh-ins, Wifi
On/Off, Auto Zeroing, Tempered Connectivity, Garmin Connect App,
Glass Surface, Black/White, Customizable View, Weather display
lbs/kg
Strength - Sleek design - Bluetooth, Wi-Fi, and ANT+ syncing.
- Measures weight, BMI and full - Readout shows weight as well as
body composition body fat, BMI, body water, and bone
mass.
- Clean design.
- Supports up to 16 users.
- Battery life up to 9 months
- Sleek and smart design
Weakness - Data not private - Initial syncing issues in testing.
- No modes for implanted - No pregnancy mode.
medical devices and pregnant - At the high end of the price spectrum.

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4.4 Estimate Market Share and Sales

Table 4.4 Estimated product market share and sales

Year 2020 2021 2022

Market share (%) 0.6 0.9 1.5

Total sales in unit 22000 22198 22528

Total sales in RM 264000 266376 270336

The Table 4.4 shows the calculation of market share and sales of the product. As
mentioned previously, the market share of this product is 1.5 per cent of the population of
young people and adults with a total population of 3 million. For the first year, our company
had a target market share of 0.6 per cent out of 3 million, as the company is not yet well
known. The market share percentage is projected to increase over the year. Total unit
sales per year are determined by multiplying the market share of the 3 million population.
Total sales for the first year are projected to be 22,000 SmartScale units, with SmartScale
expected to be sold for 1,800 units every month in the first year. Total revenue would grow
with an increase in market share. Total sales in RM shall be determined by multiplying the
total sales in the unit with the selling price of the product. The price of the product is RM
80.00 and the sale price of the product is RM 100 each. The management team has
agreed to have a 90 per cent mark up on the cost price of the product so that we can give
discounts on the product during sales or on a certain occasion.

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4.5 Marketing Strategy

The marketing strategy can be described as an organization's planning that incorporates

all of its marketing objectives in one successful plan. A well-rounded marketing strategy
should be drawn from market research and based on the required product mix in order to
achieve the full profit potential and maintain the company.Marketing mix is a collection of
acts or strategies that a business uses to market its brand or product. It has four main
components, Product, Price, Place and Promotion.

i. Product
There are a few things that need attention in a product and one of them is the brand. A
brand is a name, term, sign, symbol, or design that helps us to identify a product and also
to differentiate it from any other product. For our business which is this smart scale product,
we have done the production with our own unique design with our company sign on it.
Also, we differentiate the products from other products by having them in another four
different options colours to be purchased.
ii. Price
Price refers to the value levied on a product. There are several variables that decide a
product's price. Production costs, the segment targeted, the market's willingness to pay,
and supply-demand, for example. The NOVA SmartScale price is set on the basis of value-
dependent pricing. The price is calculated on the basis of how customers understand the
product and the price they are prepared to pay for the smart scale. Most respondents
choose to buy a smart scale at a price ranging from RM80.00 to RM 100.00, based on the
survey. The price is actually set depending on the price of the competitor, too. Other
competitors such as Eufy Smart Scale have offered a smart scale price that costs a range
of RM 150.00 to RM 200.00, respectively, which was also included in the survey by the
NOVA teams, but most respondents prefer to have this smart scale in the price range of
RM80.00 to RM100.00. As the Garmin Index offers a price range from RM 600.00 to
RM700.00, the NOVA SmartScale is considered cheaper than other competitors. But
these pricey intelligent scales provide more interesting features suitable for the price
offered.

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iii. Place
The place or location plays an important role and is surely to affect the business. That is
why before setting up any business, we must first consider the place that we choose on
building up our business company. For this NOVA team, we will choose sports store or
drugstore to introduce and place our product first such as in Al-Ikhsan, Decathlon, Sport
Direct, Watsons, Guardian, Caring Pharmacy and others.
iv. Promotion
Promotion is an operation carried out to make the product or service known to the
consumer and to trade. This is very important since it has been seen that a good
promotional strategy may influence and increase the company income based on several
major companies that has already made a huge impact in the business industry. The main
objective of conducting a promotional strategy is to make sure that the customers are well
informed about all our offer promotion and discounts. Advertising is one of the tools. This
approach includes promotional campaigns in the media, such as media affairs, social
media or even advertising them in the billboard. Relation with the management of the
development of appropriate events can also help to promote this product. Event
management will provide the company with business space to display the goods and
inspire consumers to purchase them. The product may be displayed directly to customers
and other relevant businesses. Social networking is the best way to do something about
it. Almost everyone has a smartphone and a social media presence. The burst of the
internet had everything joined up. With this new technology, social media channels such
as Facebook Ads and Instagram Supported Ads are very beneficial where we can only
pay for the commercial and wait for the customer to make a call. This is a convenient way
as it is inexpensive and easy to implement too.

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5.0 Management Team

The management team in this company consists of a group of individuals who operates
and serves at the highest levels of an organization and who are responsible for overseeing
other people as well as maintaining responsibility for core business activities daily. In
addition, this management team is also responsible for bringing the business strategy
together and ensuring that the business goals are achieved.

5.1 Organizational Chart

Managing Director
Haizad Hafiz Bin Hairudin

Production Manager Operation Manager Marketing Manager

Norkhaleeda Binti Nur Izzah Atira Binti Mohd Nurnadia Syakireen Binti
Zulkipli Akbal Mohamed Rosli

Figure 5.1 Organizational Chart of Nova Tech Sdn Bhd

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5.2 Key Management Personnel

5.2.1 Background of Linked Innovation Partnership

Table 5.1 Background of Linked Innovation Partnership

Name and Job Position Background

Managing Director • Master in Business Administration.

Haizad Hafiz Bin Hairudin • 5 years’ experience as a Managing
Director.
• 3 years’ experience as a General
Manager.
• Experienced in developing and
implementing strategic and business
plans.
• Excellent communication, leadership,
negotiation and presentation skills.
• Fluent in Bahasa, English and
Mandarin.

Production Manager • Master in Science (Industrial

Norkhaleeda Binti Zulkipli Engineering).
• 4 years’ experience as an
Engineering Technician.
• 4 years’ experience as a Quality
Control Officer.
• Excellent communication,
teamworking, problem solving,
technical, IT and numerical skills.
• Fluent in Bahasa and English.

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 Table 5.2 Background of Linked Innovation Partnership

Name and Job Position Background

Operation Manager • Master in Operation Management.

Nur Izzah Atira Binti Mohd Akbal • 5 years’ experience as an Operation
Manager.
• Experienced in budgeting and
forecasting.
• Excellent communication, organizing,
leadership, reporting, data entry and
data processing skills.
• Fluent in Bahasa and English.

Marketing Manager • Master in Marketing.

Nurnadia Syakireen Binti Mohamed Rosli • 5 years’ experience as a Marketing
Manager.
• Experienced in supervising and
managing a professional marketing
staff.
• Excellent in communication,
leadership, collaboration, problem
solving and digital skills.
• Fluent in Bahasa and English.

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5.2.2 Roles and Responsibilities

Table 5.3 Roles and Responsibilities

Name and Job Position Roles and Responsibilities

Managing Director • To develop and implement strategic

Haizad Hafiz Bin Hairudin plans in order to accomplish the short-
term and long-term objectives.
• To develop and implement business
plans to improve cost-efficiency.
• Maintaining good relationships with the
business partners, shareholders and
authorities.
• Supervising the company’s business
production, operation, financial
performance, investment and venture.
• Supervising, guiding and assigning
executives in their tasks.

Production Manager • Planning and organizing the

Norkhaleeda Binti Zulkipl production schedule.
• Estimating, negotiating and deciding
with clients and managers on budgets
to ensure it is cost effective.
• Determining quality control standard.
• Monitoring production process,
productivity rates and product
standards.
• Organizing the repair of any damaged
production equipment.
• Collecting and analyzing data in
production reports.

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 Table 5.4 Roles and Responsibilities

Name and Job Position Roles and Responsibilities

Operation Manager • Developing, implementing and

Nur Izzah Atira Binti Mohd Akbal reviewing operational policy and
procedure.
• Monitoring on budgets.
• Determining the value and mission,
and plan for short-term and long-term,
with board of directors.
• Ensuring safety and health
regulations are followed.
• Ensuring and communicating well with
employees to work and operate
efficiently
.

Marketing Manager • Evaluating and improving strategies

Nurnadia Syakireen Binti Mohamed Rosli for marketing and pricing.
• Reviewing market trends and
planning for forecasts.
• Overseeing marketing strategies with
the sales, financial, public relations
and production departments.
• Promoting the product at fairs and big
events related to the industry.
• Monitoring branding, advertising and
promotional campaigns.

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5.3 Management Compensation and Ownership

Table 5.5 Details of Management Compensation and Ownership

Name Position Monthly Salary Share of Amount of

(RM) Ownership (%) Equity Invested
(RM)
Haizad Hafiz Bin Managing 5,000 40 70,000
Hairudin Director
Norkhaleeda Binti Production 3,500 20 40,000
Zulkipli Manager
Nur Izzah Atira Binti Operation 3,500 20 40,000
Mohd Akbal Manager
Nurnadia Syakireen Marketing 3,500 20 40,000
Binti Mohamed Rosli Manager
Total 15,500 100 190,000

Based on the Table 5.5, Mr. Haizad Hafiz Bin Hairudin who holds the position as Managing
Director earns RM5,000 of salary monthly with 40% of share of ownership and he invested
RM70,000 total of equity. An investment in equity is funds that is invested in a company or
organization by buying the company’s shares in the stock market. Usually, these shares are
traded on the stock exchange. Besides that, the monthly salary for the remaining employees are
RM3,500 with the same amount of percent of share of ownership, 20% and the amount of equity
invested are RM40,000. In summary, the total salary of employees is RM15,000 and the total
equity invested is RM190,000.

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5.4 Supporting Professional Advisor and Services

Table 5.6 Details of Supporting Professional Advisor and Services

Professional Advisor Service Provided Cost (RM)

AIA General Berhad Insurance 1, 000
CHERN & CO. Advocates Legal Consultant 3, 000

Based on the Table 5.6, AIA General Berhad and CHERN & CO. Advocates are the professional
advisors for the company. First and foremost, AIA General Berhad is an insurance company which
covers any loss or damage of the company. The company pays RM1,000 per month to AIA
General Berhad. Next, CHERN & CO. Advocates is a legal firm acts as a legal consultant for the
company. The company pays RM3,000 per month to CHERN & CO. Advocates for their
consultation such as legal advice on commercial contracts and transactions.

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6.0 Financial Plan

A financial plan is necessary to determine the economic potential for business. It

provides an estimation of the potential of the venture. A financial plan, including
detailed start-up cost, working capital, start-up capital and financing, and cash flow
statement, is shown in this section.

6.1 Start-Up Cost

Table 6.1 Start-Up Cost

A. START-UP COSTS RM
Capital Expenditure: Administrative
Land & building -
Business fixtures and equipment 7,500.00
Office & warehouse renovation 15,000.00
Motor vehicles 48,000.00
Capital Expenditure: Operations
Signboard - warehouse 650.00
Technology (website development, software application, etc) 5,500.00
One-Time Start-up Expenditure
Installation of fixtures / equipment 1,500.00
Starting inventory cost 52,700.00
Office supplies 9,500.00
Legal and professional fees 3,000.00
advertising for opening -
Other Pre-Operations Expenditure
Rental deposit (rent + utilities) 33,750.00
Business registration & licences 1,030.00
Insurance & Road tax for motor vehicle 2,835.00
Other expenditure
Start-Up Costs 180,965.00

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6.2 Working Capital

Table 6.2 Working Capital

B. WORKING CAPITAL RM FIXED VARIABLE

Marketing
Advertising- social media 700.00
external dedicated marketing companies 9,000.00
Administrative
Salaries and wages 15,500.00
Rent (warehouse + office) 15,000.00
Utilities 3,750.00
Office supplies 230.00
Insurance 1,000.00
Office maintenance 1,200.00
Operations
Salaries and wages 23,500.00
Warehouse maintenance 2,500.00
Purchases 94,860.00
Other expenditure
Packaging 3,600.00
Petrol 1,100.00
Total Working Capital 171,940.00
Total Working Capital Required (1 month) 159,010.00
Total Working Capital + Contingencies (5%) 166,960.50

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6.3 Start-Up Capital and Financing
Table 6.3 Start-Up Capital and Financing

Project implementation Sources of Finance

Requirement Finance Own Contribution
Fixed assets Cost Loan Hire-Purchase Cash Existing F. Asset
Business fixtures and equipment 7,500.00 7,500.00
Office & warehouse renovation 15,000.00 15,000.00
Motor vehicles 48,000.00 48,000.00
Signboard - warehouse 650.00 650.00
Technology 5,500.00 5,500.00
Installation of fixtures / equipment 1,500.00 1,500.00
Starting inventory cost 52,700.00 52,700.00
Office supplies 9,500.00 9,500.00
Legal and professional fees 3,000.00 3,000.00
Rental deposit (rent + utilities) 33,750.00 33,750.00
Business registration & licences 1,030.00 1,030.00
Insurance & Road tax for motor vehicle 2,835.00 2,835.00

Working capital-1 month

Marketing 9,700.00 9,700.00
Administrative 36,680.00 36,680.00
Operations 120,860.00 120,860.00
Other expenditure 4,700.00 4,700.00
Contingencies (5%) 7,950.50 7,950.50
TOTAL 360,855.50 195,830.00 165,025.50

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 6.4 CASHFLOWSTATEMENT
Table6.4CashflowStatement
CASHFLOW IN 2021 FORECAST CASHFLOW
Pre-Operation January February March April May June July August September October November December Year 2022 Year 2023 Year 2024

CASH INFLOW
Share capital 190,000.00
Loan 100,000.00
Cash sales 100,000.00 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 2,160,000.00 3,000,000.00 3,000,000.00
TOTAL CASHFLOW 290,000.00 100,000.00 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 2,160,000.00 3,000,000.00 3,000,000.00

CASH OUTFLOW
Administrative expenditure:
Salaries and wages 15,500.00 15,500.00 15,500.00 15,500.00 15,500.00 15,500.00 15,500.00 15,500.00 15,500.00 15,500.00 15,500.00 15,500.00 186,000.00 195,300.00 195,300.00
Rental (warehouse+office) 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 180,000.00 180,000.00 180,000.00
Utilities 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 45,000.00 45,000.00 45,000.00
Office supplies 9,500.00 230.00 230.00 230.00 230.00 920.00 920.00 920.00
Insurance 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 12,000.00 12,000.00 12,000.00

Marketing expenditure
Advertising- social media 700.00 700.00 700.00 700.00 700.00 700.00 700.00 700.00 700.00 700.00 700.00 700.00 700.00 8,400.00 8,400.00 8,400.00
external dedicated marketing companies 9,000.00 9,000.00 9,000.00 18,000.00 18,000.00 18,000.00

Operation expenditure
Saleries and wages 23,500.00 23,500.00 23,500.00 23,500.00 23,500.00 23,500.00 23,500.00 23,500.00 23,500.00 23,500.00 23,500.00 23,500.00 282,000.00 423,000.00 423,000.00
inventory cost 52,700.00 94,860.00 94,860.00 94,860.00 94,860.00 94,860.00 94,860.00 94,860.00 94,860.00 94,860.00 94,860.00 94,860.00 94,860.00 1,138,320.00 1,581,000.00 1,581,000.00
Packaging 3,600.00 3,600.00 3,600.00 3,600.00 3,600.00 3,600.00 3,600.00 3,600.00 3,600.00 3,600.00 3,600.00 3,600.00 43,200.00 75,000.00 75,000.00
Petrol 1,100.00 1,100.00 1,100.00 1,100.00 1,100.00 1,100.00 1,100.00 1,100.00 1,100.00 1,100.00 1,100.00 1,100.00 13,200.00 27,600.00 27,600.00

Other expenditure:
Installation of fixtures/equipment 1,500.00
Legal and professional fees 3,000.00
Office and warehouse maintenance 3,700.00 3,700.00 3,700.00 11,100.00 11,100.00 11,100.00
Technology maintenance 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 15,500.00 15,500.00 15,500.00
Loan Payment 2,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 42,000.00 42,000.00 42,000.00

Pre-operations:
Rental deposit (rent+utilities) 33,750.00
Business registration & licences 1,030.00 30.00 30.00 30.00
Insurance & Road tax for motor vehicle 2,835.00 2,835.00 2,835.00 2,835.00
Office & warehouse renovation 15,000.00
Technology 5,500.00

Fixed asset:
Motor vehicles 48,000.00
Business fixtures & equipment 7,500.00
Signboard - warehouse 650.00
TOTAL CASH OUTFLOW 191,665.00 163,510.00 163,710.00 162,740.00 169,010.00 162,510.00 163,940.00 162,510.00 160,010.00 162,740.00 172,710.00 162,510.00 160,240.00 1,998,505.00 2,637,685.00 2,637,685.00
CASH SURPLUS (DEFICIT) 98,335.00 - 63,510.00 16,290.00 17,260.00 10,990.00 17,490.00 16,060.00 17,490.00 19,990.00 17,260.00 7,290.00 17,490.00 19,760.00 161,495.00 362,315.00 362,315.00
BEGINNING CASH BALANCE 98,335.00 34,825.00 51,115.00 68,375.00 79,365.00 96,855.00 112,915.00 130,405.00 150,395.00 167,655.00 174,945.00 192,435.00 212,195.00 373,690.00 736,005.00
ENDING CASH BALANCE 98,335.00 34,825.00 51,115.00 68,375.00 79,365.00 96,855.00 112,915.00 130,405.00 150,395.00 167,655.00 174,945.00 192,435.00 212,195.00 373,690.00 736,005.00 1,098,320.00

27|Page
7.0 Project Milestone
In a project, a milestone is a marker which signifies a change or stage in progress.
Milestones are important aspects of project management because they reflect key events
and map forward movement in the project plan (Harned, 2018). Without project milestone
tracking, it is just monitoring tasks and not necessarily following the right path in the project.

The activities done by the company is listed here:

Table 7.1 Project Milestone Details

NO. ACTIVITIES DATE

1. Research & Development (R&D) 9 September 2020
- Generate idea about product through idea
generation, idea screening, market survey
2. Product Design/Features 28 September 2020
- Discussing the features of the product
- Designing the product
3. Concept Testing 21 October 2020
- Process of getting an idea tested by target
audience through online survey
questionnaires
4. Build Prototype 1 November 2020
- 3D product prototype along with mobile
application
5. Test Marketing 3 December 2020
- Exploring customer response to the product
6. Commercialization 30 January 2021
- Launch the product, start the production,
and distribute it to physical electronic shop
entire Malaysia and online platform.

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 Table 7.2 Gantt chart of project milestone

Month
Activity Sep Oct Nov Dec Jan
R&D
Product design
Concept testing
Building prototype
Test marketing
Commercialization

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8.0 Conclusion

In conclusion, every innovation or development of a product needs to go through a proper

and detail of research and development process in order to improve the existing products.
The development of a product should meet and satisfies the consumers’ requirements
and needs in their daily lives. Hence, the NOVA Smartscale implemented technologies
with the current needs. In the context of market research and analysis, it is to aim is to
help new entrepreneurs of all sizes to make informed business decisions, especially on
related strategies. The market survey for this product was carried out from 1st December
2020 to 7th December 2020 through the google form platform. Responses from 103
respondents were recorded and analyzed for the improvements to our product.

Furthermore, several marketing strategies has been planned according to product,

price, place and promotion. For our business which is this smart scale product, we have
done the production with our own unique design with our company sign on it. Also, we
differentiate the products from other products by having them in another four different
options colours to be purchased. Next, the NOVA SmartScale price is set based on value-
dependent pricing. The price is calculated based on how customers understand the
product and the price they are prepared to pay for the smart scale. Most respondents
choose to buy a smart scale at a price ranging from RM80.00 to RM 100.00, based on the
survey. It is considered cheaper and affordable compared to other competitors. The
location for us to market our product is the sport stores and drugstores such as Al-Ikhsan,
Decathlon, Sport Direct, Watsons, Guardian, Caring Pharmacy and others. Additionally,
social media channels such as Facebook Ads and Instagram Supported Ads are very
beneficial where we can only pay for the commercial and wait for the customer to make a
call. This is a convenient way as it is inexpensive and easy to implement too.

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9.0 APPENDICES

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The Business Model Canvas
Designed for: NOVA SmartScale Designed by: NOVA Team Date: Version:

Key Key Value Customer Customer Segments

Partners Activities Propositions Relationships
• R&D
• Marketing • Automated • Sport junkies
NOVA SmartScale: services
• EVEREADY (battery) • Product testing • Offers six main • Fitness junkies
• Glomation (sensor) • Battery sourcing features that help to • Gym goers
• TS Tech • Sensor sourcing solve sport junkies
(component) • Component sourcing problems
• TNK Electronic (LED) • LED sourcing • Measure body
• Build up application weight, fat, water,
• Scale assembly muscle mass, BMI
and feet measures
• Assist the user by
Cha
Key Resources using only one Channels
electronic scale that
• Battery factory can connect with
smartphone and • Electric and electronic
• Sensor factory store
• Component factory smartwatch
• Sport store
• Electronic factory • Online website
• NOVA Tech Sdn. Bhd.

Cost Structure Revenue Streams

• Battery cost • Scale’s sale

• Sensor cost
• Component cost
• Assemble cost

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