Of Shas Gift Service
Written by: ANNE SHASNEETHA PAUL A/P MICHAEL
Matrics No: 201223136
2.Table of Content
CONTENT PAGE NUMBER
PART 1: PRODUCT & SERVICE FEASIBILITY
A: Product & Service Desirability 1-3
B: Product & Service Demand 4-6
PART 2: INDUSTRY/ TARGET MARKET FEASIBILITY
A: Industry Attractiveness 7-9
B: Target Market Attractiveness 10-11
PART 3: ORGANIZATIONAL FEASIBILITY
A: Management Prowess 12-14
B: Resource Sufficiency 15-17
PART 4: FINANCIAL FEASIBILITY
A: Total Start-up Cash Needed 18-19
B: Financial Performance Of Similar Businesses 20-24
C: Overall Financial Attractiveness Of The Proposed Venture 25-26
OVERALL F EASIBILITY: SUMMARY AND CONCLUSION 27-28
This analysis is an overall appeal of the product being proposed.
3.PART 1: PRODUCT & SERVICE FEASIBILITY
A: PRODUCT SERVICE DESIRABILITY
Shas Gift Service has its unique style to connect to its customers. The main reason of this customized gift idea is to reconnect and to touch hearts of customers and their loved ones. The world operates through love; Humans life is all about love and giving but circumstances aren’t always favourable to us. We have to loose our loved either due to distance or death. For instance, parents who are old and far from children, students who have to leave their family, friends who were lost for years, spouse who have passed away and many other situations where we have to loose our dearest ones. Yet bringing back memories that was cherished, serves the purpose of living as we bring nothing but memories alone during our last days. Whom will not desire a gift that will bring tears of joy that reminds their good old days. Customizing phone cases with the messages that will never be forgotten, accessories, sarees, wedding gowns with fiancé’s name or marriage dates on it, 3D photo lamps, and the show stealer, hands free smart speakers with customized voice.
. Concept Statement Test
A concept statement is a one-page outline of a product or service concept that is delivered to people who are requested to provide feedback on the idea's potential. This survey will help Shas Gift Service to find out the feasibility of the business.
New Business Concept
Shas Gift Service
Product & Service
Shas Gift Service will be selling some newly introduced gift items that was never in market before. Shas Gift Service is the specialist in customizing any gift items; magically reads customer’s heart, ideas and produce it just the way it is expected. This gift service will be operating on a daily basis, also mean it is contactable 24/7/365 for any occasion. During busy schedules, customers will not have the time to present something best for their loved ones but with this gift service it is possible as it also accepts last minute orders.
Shas Gift Service plans to serve and connect with its customers via social media. This is to save time and ease the process of placing the orders. Social media is a powerful platform that connects all classes of people and age groups. As families are the target market (all groups of people are included), it is the best to operate via social medias such as Facebook, Instagram and WhatsApp to draw attention to our products.
Why Shas Gift Service?
The gift and souvenirs industry continues to expand in current time. Customization in this gift and souvenirs industry is still sought by many. Shas Gift Service is introducing some of the coolest and new customized gift items that people have never heard before in a reasonable price. This customized gift items is the best for anyone who would desire to surprise their loved ones and reconnect with those who are not nearby.
Special Feature- No other gift shops offers this
As a special feature, Shas Gift Service will introduce a hands-free smart speaker with customed voice tune. This smart speaker communicates with one just like talking to any other human. It follows instructions and does whatever the owner would demand for with its sophisticated software. Another special element that is unique and no other competitors offers, is the customed voice tone. This voice tone could be anybody’s. For instance, celebrities or even our loved ones who have passed away. This special feature will help people to reconnect with the ones they miss and wished to be by side.
Shas Gift Service is led by Ms. Anne Shasneetha Paul, the founder itself who have business experience for about 6 years and assisted by professionals who are outstanding in their respective fields such as engineering, finance and management. We guarantee new ideas, new methodologies to produce new customized gift items. New and innovation is what required in this industry.
Based on the concept statement, that was distributed to pursue feedback, many fell in love with the concept and idea of the business approach. Positive feedbacks were thrown towards the idea generated as many has the desire to hear from their loved ones. They think photos alone does not provide the warmth of presence they desire for. Even if it is not possible in the cases where one have passed away, Shas Gift Service thought it is still possible as they can customize a hands free speaker that communicates with people; with a special element that is the voice of the person whom they want to hear from. This amazed those 15-20 people who read our outline.
Shas Gift Service have this idea to witnesses this dream come true moment just with a voice note of their loved one through advanced technology and voice changing software. If the idea is generated, people would experience a chit chat session with the person whom they would want to hear from; just like speaking via call. Especially, the ones who have lost their children, spouse, urge for our hands free speakers. Customers are excited with the idea and expecting it to brought to market as soon as possible.
Buyers will happily shop with us for our product is a disruptive business model that only could be found with us and no other competitors. Imagine talking and listening to our dearest one who is now no more. This desire is our key to run the business as this gap in the market is still left unfilled. Customer’s perception is our reality. They desire, We produce! Hence, Shas Gift Service will be viable as it meets the desires and customer wants.
6.This Photo by Unknown Author is licensed under CC BY-SA
B: PRODUCT DEMAND
Firstly, knowing the demand for Shas Gift Service is vital. The aim is to see how customers react to the overall notion of what we want to offer, and then alter, update, and improve the concept based on the response. Without the knowledge of demand from the customers, the idea of operating a business could be misled or failed. So, Shas Gift Service had few steps to read the demand from customers. Those methods are listed below.
Talking Face to Face
Talking to people is the only way to find out if your product or service is what they demand. The aim is to see how customers react to the overall notion of what you want to offer, and then alter, update, and improve the concept based on the response. Face to face talk session with general people; who are the target market, seem to want the new invention of Shas Gift Service. They think it is a must gift item to their family members on special occasions as it touches and moves the hearts indeed.
Using Online Tools
Besides, we also surveyed on the demand for gift customization via online. Consumers are interested in purchasing customized items in 36 %. In addition, surveys indicated that 48% of customers are willing to wait longer for a personalized product or service as this customization does not go out of trend. Google forms were created to see how many people wants and demands customized gift items. 89% of the response is positive.
Library and Internet research
Moreover, studying does customers really look for customized products in library and via internet shows a result that they find value through exclusivity, such as a customized, one-of-a-kind product, or specificity, such as a feature that functions in the sense they want.
Shas Gift Service idea fits the best to read the customers needs as we planned to produce what is exactly on our buyer’s mind in a short period of time. We do not want our customers to wait as the studies showed people tend to wait longer on customized items. Thus, filling this gap by even accepting last minute orders will shoot the demand. In other words, the demand for customized items is durable and sustainable as long as the customers are happy with the outcome with fastest delivery. Happy customers are Repeat customers. Repeat customers spend more on each purchase; demand rises. Hence, Shas Gift Service is operatable as is in the term to meet the demand from customers as it prioritizes the slogan “Customers are always right”.
9.Part 2: industry/ target market feasibility
A: INDUSTRY ATTRACTIVENESS
The industry of gifts, novelty, and souvenirs is predicted to expand by RM 49.4 billion, with a 3 percent compound annual growth rate from year 2020 to 2025. The research on this particular industry offers valuable insights further into the market's post-COVID-19 impact, which will aid entrepreneurs in evaluating their business strategies. Shas Gift Service have evaluated its strategies through industry attractiveness assessment tool as followed.
10.Industry Attractiveness Assessment Tool
Potential Rate Low Medium High
1. Number of competitors Many Few None
2. Growth rate of industry Little Moderate Strong
3. Stage of industry life cycle Matured Growth Dawn
4. Importance of industry’s
products and/or services to Unsure Would like to Must Have
5. Extent to which business and
environmental trends are moving Low Medium High
in favor of the industry
6. Number of exciting new product
and services emerging from the Low Medium High industry
7. Long-term prospects Weak Neutral Strong
Therefore, executing generalship to sustain and improve the industry attractiveness, develops Shas Gift Service indeed. To put it another way, our business idea is not crowded or common as the supply for this industry is limited. Besides, this industry is now growing and taking up to the next level. Thus, sowing a seed in this industry is highly recommended. Any other gift items such as mugs, pillow cases, keychains and souvenirs are already in the industry. Alternatively, we have come up with hands free smart speaker with customized voice tone. This is a new and innovative idea will attracts our product differently from the existing industry. Besides, our unique idea will be a must buy product for many who have lost their closest ones. Imagine talking to the voice that we have always wanted to hear from; either loved ones or celebrities. How cool is that? Shas Gift Service provides that luxury that any other competitors fail to. We are introducing innovative high-margin products while discontinuing less profitable ones. Our products and service, would be in favour on how environmental and business trends are working.
The results of this analysis based on industry attractiveness tends to be positively related to Shas Gift Service. Manipulating the factors and elements of industry attractiveness helps our business to influence people and the industry conclusively. In consequence, the business is utilizable.
12.B: TARGET MARKET ATTRACTIVENESS
When there is a market to serve or a demand to fill, a business exists. In that case, target business marketing is a crucial notion. However, attractiveness in target marketing is pivotal. Businesses have discovered potential market segments to target; the question now is how to make them attractive. Certain characteristics, on the other hand, make some sectors more appealing and attractive than others. This is justified with Target Market Attractiveness Assessment Tool.
Target Market Attractiveness Assessment Tools
Potential Rate Low Medium High
Number of competitors Many Few None
in target market
2. Growth rate of firms in No Slow High
the target market
3. Methods for generating Unclear Somewhat Clear
revenue in the industry clear
A larger market segment, is more appealing than a small one. Owing to the fact that a larger market segment provides a company with more potential customers. According to the study, a market segment is less appealing if it is already highly competitive, which means that a number of the company's competitors are already active in the field. Even though the market sector is huge, a newcomer to the market segment will have to fight for market share, which is inefficient. Businesses are also on the lookout for targeted markets that have the potential to grow. We consider future profitability as well as the targeted market segment's growth rate. When a product appears to be new to customers and has a lot of possibility for growth, a segment becomes attractive. Related to that, since gifts, novelty, and souvenirs industry is not dominated yet, it is advisable to outgrow as a newcomer. Besides, the target market seem to be potentially growing in this particular industry which is a great sign for Shas Gift Service to start operating. Moreover, when something is introduced new, customers will find it attractive when they have never deal with such product before.
As a result, Shas Gift Service would definitely catch people’s eyes and be welcomed as it is product is something new and fun to deal with. Particularly, families who are our target audience will get a chance to reconnect and be overwhelmed by so many heart touching memories and feelings brought to live by our products. For example, an old mother hearing her husband’s voice whom she have lost 20 years ago. She will definitely break down in tears of joy. Though, she might not use our hands-free smart speaker to instruct or find something scientifically, she will still love our product as she hears her husband’s voice; interacting with our speaker brings back her good old days with her husband. Emotions are focused; indirectly, all classes of people are targeted. Hence proved that Shas Gift Service has the capacity to attract families and friends; attractive target market is accomplished too!
14.Part 3: organizational feasibility
A: MANAGEMENT PROWESS
A planned business should honestly assess its management team's prowess, or ability, to ensure that management has the essential passion and expertise to begin the venture. There are two most critical factors in this region. Firstly, the solo entrepreneur's or founding team's enthusiasm for the business concept. Secondly, the extent to which the solo entrepreneur or founding team is familiar with the markets in which the company will operate. Elements under these two factors are simplified in the management prowess assessment tool.
15.Management Prowess Assessment Tool
Potential Rate Low Medium High
Passion for the Low Moderate High
2. Relevant industry experience None Moderate High
3. Depth of professional and High
4. Creativity among manage- Weak Moderate High
ment team members
5. Experience and expertise None Moderate High
in cash flow management
6. College graduate Non Some Many
We as a team too have a desire to innovate the technology just like Steve Jobs. In order to introduce hands free smart speakers with customized voices, advanced and sophisticated software is needed. Though many say, it could be very complicated we are still believing that it is possible with our passion towards this. The founder’s passion for the business idea is the marker of management prowess. The founder of Shas Gift Service is an intense young woman who is passionate about her art and science in business. Being passionate about our business means that we can work on it repeatedly without becoming bored. It also implies having a constant desire to improve every aspect of our product. Even if everyone else thinks our business fails, we will be able to see it from a positive perspective if we have compassion for it. Secondly, the founder has six years of relevant industry experience to run the business. This helped her to gain knowledge on every angle of running her own gift service. Correspondingly, we have a team of professionals in respective fields. We have software developers/ engineer, financer, manager who are expertise in our jobs such as managing in cash flow and interacting. We have pursued our degree and sufficient work experience to run this business. Besides, we are very creative in generating this idea. This helps us to improvise and come up with new and innovative ideas that will attract our business in a wider range in future time.
Subsequently, Shas Gift Service is feasible since it has management prowess to help us enlarge in future. We took Steve Jobs as our inspiration to generate this business idea. Why Steve Jobs? He was driven by a desire to change the world through the use of computer technology and software. Due to his passion, he was able to think about difficulties in a whole new way. As a result, he was able to create one of the most revolutionary businesses in history. Similarly, with the expert management prowess of Shas Gift Service we will be able to achieve and conquer the market.
17.B: RESOURCE SUFFICIENCY
The term "resource sufficiency" refers to the non-financial resources that a venture will require to succeed, and it is used to determine whether an entrepreneur has a sufficient number of these resources. The organization's abilities are listed in six to twelve types of critical nonfinancial resources, such as office space availability, lab or manufacturing space availability, labour pool quality, availability of contract manufacturers or service providers, key support personnel, likelihood of forming favorable strategic partnerships, should be critically ranked. If the investigation finds a lack of crucial resources, the enterprise may not be feasible as envisaged. To solve this doubt, Resource Sufficiency Assessment Tool is used in Shas Gift Service.
Resource Sufficiency Assessment Tool
An explanation of the rating system used in the first portion of the table is as follows:
② Likely to be available: will probably be available and
will be within my budget
③ Unlikely to be available: will probably be hard to find
or gain access to, and may exceed my budget
⑤ NA: not applicable for my business
Resource Sufficiency Ratings
Office space ① ② ③ ④ ⑤
Lab space, manufacturing ① ② ③ ④ ⑤
space, or space to launch a
Contract manufacturers or ① ② ③ ④ ⑤
Labour quality ① ② ③ ④ ⑤
Key support personnel ① ② ③ ④ ⑤
Ability to form favorable ① ② ③ ④ ⑤
First and foremost, Shas Gift Service has its own office space which allows the team to work conveniently. Therefore, we do not need to rent or afford an office or workspace. Additionally, room available in our office is favourable in size and space. This ease our manufacturing and lab processes to produce top quality products. Furthermore, our labour pool is packed with wise and well experienced business minds. We have engineer, financer, manager and business masterminds who are the best in their respective fields. Then, the crucial element here is the availability of contract manufacturers and service providers. Without the suppliers, we have no materials and components to produce anything. Shas Gift Service have a very good relationship and précised contact with these manufacturers and suppliers which is a Yes sign to start the business. We also have professionals/ key personnel who are essential to the success of the project. They will provide after-sales or technical assistance from areas ranging from engineering to marketing to the customers to understand better on our products. More marketing and sales opportunities can be generated as a result of the service. Ensuring Shas Gift Service customer’s satisfaction is critical to our company's continuous success. Apart from that, as we have negotiators who are managers with good communicating skills. We can easily form a beneficial partnership strategy for the maturation of the business. Our knowledgeable team will create a win-win situation for the partners. Hence, it will boost the start up plan for the business introduced.
As a conclusion on resource sufficiency, Shas Gift Service is feasible to operate with the idea generated. It is capable of managing by its own with the adequate resources.
20.Part 4: financial feasibility
A: TOTAL START-UP CASH NEEDED
Startup capital includes finances for any expenses incurred prior to launching a business, as well as capital required to run the business until it achieves positive cash flow, or when sales exceed expenses. It is vital to accurately estimate the money required to establish a business because a lack of funding can lead a business to fail in its early stages. The possibilities of a cash shortfall are decreased when careful predictions are made based on reasonable assumptions. Shas Gift Service too has its total start-up capital. The total startup cash needed is calculated using the following table.
21.Start-up Cash Flow Forecasting for a Year
Capital Investment Amount
(Building Improvements) 20,000
2. Furniture and fixtures 5,000
3. Computer equipment 7,000
Operating Expenses Monthly Amount (RM)
(RM) [x 12 months]
1. Legal, accounting, 5,400 64,800
and professional services
2. Utilities 1,200 14,400
3. Licenses and permits - 500
4. Salary and wages 5,000 60,000
4. Printing & Stationery 200 2,400
5. Telephone and internet 300 3,600
6. Transport and delivery 300 3,600
TOTAL STARTUP CASH NEEDED 181,300
22.B: Financial Performance of Similar Businesses
Business leaders can analyze operating performance and tweak strategy by looking at the percentage rise or drop in expenses and sales. All stakeholders can see if performance is improving or deteriorating by comparing financial statements from multiple years.
Comparison of the Financial Performance of Proposed Venture to Similar Firms
Average Annual Sales:
1. Shas Gift Service.
Growth rate of annual sales: 6.07% (2021)
Expected rate of annual sales: 15.05% (2022)
; 8.89% of growth from year 1 (2021) to year 2 (2022). This is a positive sign as the number of sales will also increase every upcoming years (2023,2024…). Hence, the annual turnover also increases.
23.2. Zukri Gift Store.
Growth rate of annual sales: 4.28%
Expected rate of annual sales: 6.70% (2022)
; 2.42% of growth from year 1 (2021) to year 2 (2022). This is indicates that the number of sales increases. Hence, the annual turnover also increases.
Growth rate determines the profitability of a business. The hypothesis of these financial statements are, the higher the growth rate of sales, the higher the profitability of the business in upcoming years. The growth rate is crucial for the founder to notice; study the pros and cons of the business. This will help them in understanding the needs and trend changes in industry even better. Comparably, the annual sales of Shas Gift Service is better than Zukri Gift Store. Even though, both the firms have a positive annual sales turnover, Shas Gift Service tend to boost sales from one year to another. Consistency is the key to sell our products. In comparison to Zukri Gift Store, our venture will successfully reach more customers as time grows. Hence, our business is viable than the other existing firm.
24.B. Net Income
1. Shas Gift Service (2021)
- Net Flow Cash: (A-B)= RM 531,400
74.85> 50% profit
- The net income for the 1st year is stated above. The overall value for 2nd year(2022) is expected to be twice the amount and profit than the previous year. Approximately, RM 100,000 (net cash value) could be easily reached as the expenses are managed with care by the financer of Shas Gift Service.
25.2. Zukri Gift Store (2021)
- Net Flow Cash: (A-B)= RM 151,900
- 43.4% ,<50% profit
- The net income and profit of the company should be increasing 1.89% in the 2nd year(2022) to reach at least 50% of profit and to efficiently run the business. Cutting cost strategy should be improvised in order to run the business in a long term. Otherwise, the business will be facing loss in the upcoming years.
In general, greater ratio is generally preferred since it indicates that the company is effective at generating sales or revenues from its asset base. A lower ratio implies that a corporation is not efficiently utilizing its assets and may be experiencing internal issues. Thus, the annual turnover should be more than 50%, for the venture to run successfully in the midst of its competitors. Comparably, Shas Gift Service (which is about to generate) is accelerating its rate of sales and net income than Zukri Gift Store, which is already in the market. The overall income is above average for year 1 and 2. In other words, management skills of assets in Shas Gift Service is way healthier than the other firm. We have utilised and financed our cash out flow wisely than the other. Thus, Shas Gift Service could confidently introduce itself in the hub as the financial feasibility is positively reflected.
27.C: Overall Financial Attractiveness of the Proposed Venture
Promising business start-ups are linked to a number of other financial concerns. The amount to which a business opportunity is positive relative to each aspect is anticipated rather than actual performance during the feasibility analysis stage. The table below covers the aspects that influence the overall attractiveness of a business idea’s financial feasibility.
Overall Financial Attractiveness of Proposed Venture Assessment Tool
Potential Rate Low Medium High
1. Steady and rapid growth Unlikely Moderately Highly
in sales during the first
few years in a clearly defined
2. High percentage of recurring Low Moderate Strong
3. Ability to forecast income and Weak Moderate Strong
expenses with a reasonable degree
4. Likelihood that internally Unlikely Moderately High
generated funds will be available
within two years to finance growth
5. Availability of exit opportunity Unlikely May be Likely
for investor if applicable
Our venture's popularity will grow as it gets more socially accepted, just within a year as we are advertising it via social medias. It is very likely that once we get a client, they will come back and offer recurring revenue. Because of our professional financer, our ability to project income and expenses with a reasonable degree of precision is high. It is highly likely that internally generated cash will be available to finance growth within two years. We analyzed comparable companies and firms that do similar business to ours and discovered that we are far from the same amount of revenue and net income. Hence proved, our company is viable and will be successful; we have met and attended all the financial attractiveness.
29.OVERALL F EASIBILITY: SUMMARY AND CONCLUSION
Overall Feasibility Suggestions to
Product/Market Not feasible
Industry/Market Not feasible
Organizational Not feasible
Financial Feasibility Not feasible
Overall Assessment Not feasible
Learn more on people’s desires and trends
Control price rage to beat competitors
Have more number of expertise as the business grows
Be more accurate with numbers as the venture enlarges
In a nutshell, Shas Gift Service is viable in every aspects of running a venture. Continuous study and experiments on surviving in this growing gifts and souvenirs industry, will lead to better knowledge and greater vision. Shas Gifts Service has a great potential to conquer the industry and to widen its mission. The idea generated is capable of reaching to all class of people as time grows. Strong and wise ventures like Shas Gift Service will be warmly welcomed to the industry and country’s economical growth.
There are certain elements that could be focused and improvised in this business plan. Understanding these will help us grow larger and successful firm in future.
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and it is a significant acronym in the business world for both individuals and organizations. SWOT analysis is a great tool for evaluating these four critical aspects in a business. This analysis can be used to determine where a firm is in a competitive market and what steps need to be done for future strategic planning, assisting decision-makers in developing a company's future roadmap. Mastering and carrying out this analysis time to time will help Shas Gift Service to stand out in midst of competitors.
The marketing mix pertains to a company's set of controlled, tactical marketing tools for eliciting a desired response from its target market. Everything a firm can do to affect demand for its product is included in this category. It's also a tool for assisting with marketing strategy and execution. This includes, product, price, place and promotion. Shas Gift Service should be using these marketing tools to reach larger number of target market. The many, The Better!
Know your limits
Realising and understanding our limit is vital. Limit simply means business operating hours and number of orders accepted in a period. Shas Gift Service should improvise its working hours as it is contactable 24/7/365. This could be an advantage to the customers but not the staffs itself. They might grow tired and exhausted after a long work period with no break; as the orders are continuously coming in. . Thus, they cannot produce the best product as the number of order increases without limits. This should be seriously considered as the company enlarges.
34.Shas Gift Service
they tend to miss. Occasions are always special and gifting something is crucial. How blessed it would be to find something that reads our loved one’s heart? That is the key of happiness, she believes. Your memories, Our Recreation!
Anne Shasneetha Paul,
A young entrepreneur who accomplished her higher studies Business, wanted to bring memories to live. Anne initiated this business in order to touch people's hearts and to help them reconnect with their loved ones whom
GREAT THINGS NEVER COME FROM COMFORT ZONES