Bacarca: A 3-in-1 Entrepreneurial Venture in Bukit Bintang, Kuala Lumpur

Bacarca is a 3-in-1 entrepreneurial venture in Bukit Bintang, Kuala Lumpur offering barbershop, coffee shop, and carwash services. The company aims to provide quality services and products through the use of latest technologies and build a strong relationship with customers and suppliers. The mission is to create a novel sustainable business and double its customer base in a year. The company is owned by Coffeeshop Ltd and has four major suppliers. The location is highly favourable for a successful run and the company utilises the 4 P's of marketing mix to expand its identity and make its mark in the competitive industry.

Slide 1:
Melur Neoh, Sarah Chia, and Amal Said together came up with the idea of opening a
company named Bacarca that offers three different services – barbershop, coffee shop, and
carwash service. The idea behind their thought is to save time of the people as they can get
two services in a same place. Also, people do not have to wait for their cars to be washed and
could get in the coffee shop to have a bite. They decided to start their entrepreneurship at
Bukit Bintang in Kuala Lumpur.
Neoh and Chia used to work at a coffee chain and restaurant respectively in
managerial posts. They decided to use their experience to open their own entrepreneur
company. Along with car washing service, Bacarca also offers various car accessories such as
car cover, cleaning clothes, air freshener, GPS navigator, seat cover, tire inflator, floor mat,
and puncture repair kit. Neoh and Chia personally decided the menu for the coffee shop,
which includes a variety of coffees along with a range of snacks. The workers in the
barbershop are properly trained and skilled to provide the customers with their every kind of
demands.

Slide 2:
The mission of the company is to create a novel sustainable business in this age of
globalisation. As an entrepreneur company, Bacarca has the objective to double its customer
base in a year. With strong marketing plan and strategies, it aims to build a brand name. The
company wishes to employ a Human Resource team that is competent to manage the process
of employee hiring, staffing, training, and maintain healthy relationship and effective
communication with the employees.
The company aims to provide the customers quality services and products through the
use of latest technologies. In order to build a positive reputation, the company understands
the importance of customer satisfaction. That is why their primary object is to fulfil the
demands of the customers with quality and personalised products and services.
Building a strong relation with customers as well as the suppliers is a significant
objective of the Bacarca. With their success, the three entrepreneurs expect to inspire the
coming generation to be innovative and imaginative. The objective of the company is to
increase its value in the market in a year to gain more investors and shareholders.

Slide 3:
Ownership: The organization will be owned and operated by Coffeshop Ltd that will be
completely owned by a single owner. The company will be trading for three years with an
estimated average of 10% of turnover growth over the duration of three years.
Suppliers: The 3 in one business will have four major suppliers that will be responsible for
supplying all their consumables. One of the supplier will be based on the production of
coffee, another will be based providing car wash supplies and another supplier will be
providing barber service (Burns, 2016).
Legal structure: The organization will be have a legal position for a period of 10 years. In
this they will be required to pay a premium of $21,000 that will be amortized over the period
of legal terms. The rent review will be over when the existing legal terms gets over. The
terms for the coffee shop and care wash supplies will be present with the same vendor and
owing to the existing relationships and the existing market condition there will be no legal
premium payable for the barber site. Apart from these and proposed; legal terms there will be
no legal commitments.

Slide 4:
Political: While political stability of a country provides opportunities for a business to grow,
political crisis creates obstacle for business to develop. Malaysia is currently facing a political
unstable situation which is effecting both existing and start-up enterprises (Din et al. 2016).
Economic: The economic factor of a country has a huge influence on the success of any
business in that country. The recent economic growth in Malaysia indicates that there is a
scope for new businesses in the country.
Social: As the customers are one of the most essential element in any business, the culture,
norms and preferences of the societies are significant. The carwash business is a highly
profitable business, and coffee industry has its own stable market already. The barbershops
are also trending in the business world.
Technological: With the increasing rate of technological inventions, it is important for every
business to have advanced technological tools. In order to satisfy various demands of the
customers, the café should be equipped with newly invented machineries. The barbershop
also needs to have the modern tools to satisfy the customers. The task of carwash, on the
other hand, does not have much demand to be technologically developed.

Environmental: Environmentally sustainable business is a crucial issue in the context of 21st
century world. Therefore, reusable and greener materials and reuse of water should be a focus
of the new business (Ahmad et al. 2014).
Legal: When the laws and regulations of a country put emphasis on the growth of businesses,
it helps new businesses to grow. The regulations and acts of Malaysia are in favour with
entrepreneurships.
Slide 5
Introduction Stage: The introduction stage of an industry is the early phase of that industry.
This stage includes the development of the business and the marketing of the entrepreneurial
idea of that business. It is usual in this stage to gain low profit. As an entrepreneurial concept,
the 3-in-1 business gained popularity in a moderate pace.
Growth: The second stage is the growth stage, where the consumers acknowledge the
advantages of the industry and its products and services. In this stage, the priority is the
marketing and research, rather than profit. The 3-in-1 industry in this stage had been able to
maintain a satisfactory level of profits and successful marketing (Abdullah et al. 2018).

Maturity: In the maturity stage, the rate of growth slows down and the focus of the business
shifts to reducing expenditures. The competition increases, and thus, cash flow and market
become more crucial. This industry has been experiencing new entrances. Hence, the market
competition is likely to increase in the future.
Decline: The stage, where an industry reaches its limit of growth, is called the decline stage.
In this stage, competitive advantage becomes extremely important as weak competitors are
forced to leave the industry. With innovative products and developed services, the 3-in-1
industry could delay this stage.
Slide 6
Industry Rivalry: Carwash is a popular service in Malaysia, therefore in has numerous
existing rivals. International coffee and food chains such as McDonald’s and Starbucks have
multiple shops all over the country. The local specialised barbershops deliver better services.
New Market Entrants: The carwash industry has the advantage of smaller investment and
larger profit. Therefore, new shops providing this service are opening in a steady rate. Coffee
shops are seen at every corner of the road and more are opening day by day. It is a strong

industry and thus, there would always be the threat of potential new entrants. As a growing
industry, barbershops possess threats of potential market entrants (Munoz et al. 2015).
Substitution: Specialised barbershops and coffee shops that offer a range of quality products
and services could replace the service of the company. Consumers are opting healthier drinks.
Thus, fruit juices could replace the habit of coffee consumption.
Bargaining Power of the Buyers: As an entrepreneur company, Bacarca has less bargaining
powers than the buyers (Rahim et al. 2015).
Bargaining Power of the Suppliers: While for the coffee service the company has to
heavily rely on suppliers, the carwash and barber service do not require much supplies.
Therefore, the company has advantage of the bargaining power with the suppliers.
Slide 7
Strengths: The Company is offering three services – barbershop, coffee shop, and carwash
service - in the same place. It has the advantage of low investment. Skilled employees in all
the three services help the company to build positive reputation (Terano et al. 2015).
Weaknesses: Limitation in financial resources is a risk for the company. The managerial
skills of the executives are a potential weakness of the company. In this age of online
services, Bacarca is limited to physical shops only.

Opportunities: The economic growth of the country provides opportunity to the company to
establish a successful business. The consumer trend to prefer shops that has environmentally
sustainable business products and services. The habit of the customer to go for shops that
offers multiple services under a same roof.
Threats: There are multiple specialised foreign competitors. The political instability of the
country creates risks for the company. The changing trend of customer choices and their
bargaining power are threats to the success of the company (Salim et al. 2015).
Slide 8
The organization will be located at Bukit Bintang, Kuala Lumpur, Malaysia, one of
the busiest place in the nation and therefore has a scope to attract huge masses of customers.
This will be an excellent position as there are plenty of tourists and shoppers that visit that
place every day. All the three service will be provided in the same location that will be short
distance from the main food area.
The location will be decorated like a common run of the mill roadside coffee shop
with theme followed through all of the three services. This familiar theme will be used
exactly for all the locations it plans to open its business (Noor et al. 2018).

The coffee shop will be open all 24 hours for the satisfaction and flexibility of the
visitors. Car wash facilities will be available from 5.30 am to 11.30 pm. The barber shop will
be open from am to 10 pm.
The business is estimated to provide all of the three services in the market with almost
100 million industry in the Malaysian shopping malls situated in that area, with an estimated
increase in revenue outgrowing 10% annually. Being a 3 in one coffee shop, salon and car
wash services they will be offering the best food and other services with an opportunities
more than 500,000 visitors in that location thereby outgrowing the competition in the market.
Slide 9
The scope of potential customers is high as the company offers three shops, therefore,
influencing three distinctive potential customer bases. It is observed that the coffee shops
have the potential of growing a regular customer base (Stratton and Werner 2013). Since
there is a coffee shop available, the company have a potential to attract various age group of
customers. Teenagers belonging to the age group of 15 to 19 years are one of the key
potential customers that can form a regular customer base for the company. Adding to this,
the customers belonging to age group 20 to 25 years can also form a regular customer base
for the company that have the probability of visiting the coffee shop regularly. The age group

ranging from 26 to 50 belong to the working class group that have a high chances of owning
a car. Therefore these customers can be attracted towards the carwash shop as well. In
addition to this, customers waiting for the carwash services can spend a quality time at the
coffee shop as well. This shall work in favour of the company as the customers have the
option of satisfying two needs simultaneously since it offers three services at the same roof.
The barber shop that the company offers have a traditional vibe to it and therefore, this could
attract the senior aged customers ranging from the age group 51 to 60 years.
The location of the shop is in a highly favourable business location where thousands
of shoppers visit the place every day. Therefore, the key potential customers are the everyday
shoppers that visit the area (Simpong et al. 2018). Apart from this, the employees of the malls
that are situated in the busy area of Bukit Bintang could be targeted to be the regular
customers of the shop that the company can attract. Therefore, the company with its
favourable location have high chances of growing a regular potential customer base.
Slide 10
The 4 P’s of marketing mix are discussed in this slide where the company utilises key
tools of marketing to expand its identity and make its mark in the competitive industry. For
the purpose of achieving a long term competitive advantage for the company a well thought

out marketing strategy is essential (DaSilva and Trkman 2014). The four P’s of marketing
mix is significant to be considered for achieving the set goals of the company.
Considering the products that the company offers, there are mainly three products or
services that the company delivers. The coffee shop offers a variety of caffeinated beverages
and other savoury items in its menu. Additionally, the barber shop comprises of professional
employees that offer trendy hair styling services and lastly, the Carwash shop and service
provides the customers with advanced car cleaning solutions and also includes other car
accessories on sale. The company offers a value based pricing strategy where the products
and services offered by each shop are affordable. The promotional strategy adopted by the
company ranges from social media marketing, promotional event and various means of
advertising including online advertising. The multi-facilitated shop is located in highly
popularised area named Bukit Bintang. Hence, the place for the company is highly
favourable for a successful run.
Slide 11
Promotion: The most necessary element of the marketing strategy will be the delivery of the
quality product the food and beverage services, along with car wash and salon services will
be first sold through the process of word of mouth.

People: Through the developing relationship with other retailers the company will be taking
an effort to create opportunities for the consumer to look forward to experience the
organization (Chea 2017).
Packaging: The packaging of the services such as salon products, and food products will be
fit with the staying strategy used by the airport. The company will be offering the customers
with an upscale feel without an additional price for the packaging.
Price programs: The Company will have different pricing program including exclusive sales
event, festivities related vents, free Wi-Fi services. The food and drinks along with carwash
and salon services will have different options of prices that help them to set an attractive
margin while offering the value to the customer.
Slide 12
Management
The organization will be owned by the Coffee shop in a whole for all the services including
car wash and salon services. The following management structure will be:
 Three shift managers for managing the front office
 Two deputy shift managers for car wash services
 One head chefs for the coffee shop

 Two assistant chefs
 Four working staffs in the salon
Part time employees will be hired during the holidays due to the shortage of staffs after
opening the business. Having three sites means all the sites have to alternately manage in case
someone absent or lack of employees (Samad and Mansor 2017).
Slide 13
Recruitment and motivation: All the employees will be selected and recruited on the basis
of their qualification. The candidates needs to have basic skills of managing the consumers.
Salon expertise workers will be needed to have skill on hair spa, makeover and salon related
skills. In Car wash the candidates needs to have skills related to car fixing, and washing of
cares. The managers will be hired on the basis of their higher qualification and skills to
motivate the other employees (Ahmad et al. 2016).
Training: Training will be provided to the employees as per the requirement of the services
needed to maintain the organization.

Slide 14
In this slide the key operational strategies are discussed that the company shall adopt
for achieving the objectives set up by it. For maximising the identity of the company among
the customers the company shall adopt a customer driven operational strategy. The
operational strategy is cost driven as well since the company is a start-up business in the
competitive market. A customer driven strategy will be adopted by the company to suffice
and attract maximum number of customers and therefore increasing the sales of the company
(Muhammed et al. 2017). Therefore the following strategies will be adopted –
 Offering new products and services in order to attract customers. Although it is a
startup company, it should take the initiative of adding value by continuously
introducing new products.
 Inclusion of a special offer in the coffee shop every weekend will attract more amount
of customers.
 Digital feedback system shall be installed in each shop that is the coffee shop, the
barber shop and the carwash shop for analysing the customer satisfaction regarding
the services and products that the company provides.

 Developing core competencies of the company by recruiting highly skilled employees
and building a good relationship with the stakeholders associated with the company.
 The company shall provide training programmes for the sake of enhancing the skills
of the staff members working in the coffee, barber and carwash shops.
The company shall continuously adopt the above mentioned operational strategies to
cope up with the competitive environment by adopting planned and innovative ideas.
Slide 15
In this slide the company’s Human Resource strategies are discussed that mainly
focuses on the staff members associated with the company. The significance of Human
Resource Management (HRM) is significant for start-up business as well. It is observed that
many start-business fail miserably due to the absence of human resource strategy taken up by
them (van Aartsengel, A. and Kurtoglu, S., 2013).The company shall adopt the latest HR
trends in order to establish its prominent ground in the competitive market (Kardooni et al.
2015). Therefore, the following HR strategies shall be adopted for increasing the success rate
of the company –

 The HRM shall take an active initiative to appreciate and reward the contributing staff
members working in all the three shops of the company that is the carwash shop,
barber shop and coffee shop. This strategy shall increase employee motivation.
 The HRM shall adopt an employee feedback system that will help the company to
identify the problem areas or dissatisfaction of the staff members regarding the
policies and operations of the company.
 The HRM shall conduct training programmes for enhancing the skills of the
employees and to increase productivity of workers.
 Implementation of legal employment rules and constructing appropriate policies is a
significant part of HRM strategy that the company shall adopt for itself.
 The recruitment process of the company shall hold rounds of interviews that will test
the skills of candidates. Henceforth a proactive recruitment strategy shall be adopted
by the Human Resource Management (Mohamad et al. 2015).
Slide 16

In this slide, the probable challenges that the company may face is analysed and
enumerated. Since the company is in the early stage of industry life cycle it shall face many
tough challenges.
The company deals with three in one business henceforth, the company may have to
deal with distinctive challenges at the same time that would be difficult to handle
simultaneously (Hassan et al. 2018).
The coffee shop and the salon that the company offers within its business may face
tough competition from the other competitors of the area where the shop is situated.
Various malls situated near the shop may decrease the number of customers since the malls
offer a wide range of facilities within its amenities (Chofreh et al. 2016). The company may
face a hard time building a trustworthy relation with the various suppliers since the company
is in the initial phase of industry life cycle.
Similarly, the company may face difficulty in making an impact upon customers
along with the competition from the other competitors. Hiring new employees or staff
members may be another major challenge that the company face as the company’s position is
in the early stage of industry life cycle (Hassan et al. 2014). The company may face
increasing or gaining profitability against the tough competitors present as the company is a
start-up business.

Slide 17
The business requirements will be falling in line with the expansion of business in to
three major services in the Malaysian airport.
The overall business will be required an investment of $100,000. The startup will be
financed by a loan of $50,000 and cash projection from the owners with $50,000.
The loan is needed for a period of three years as the period in which it is estimated to
be repaid is under the commercial mortgage of repayment (Lop et al. 2017).
The money will be used in the following ways:
Required equipment’s $55,000
Working investment $25,000
Training of the staffs $2,000
Marketing as well sales promotions $1,300
Recruitment $1,250
Startup inventory $14,500

Total revenue $97,800
Financial assumptions
Year 1 Year 2 Year 3
Planning Month 1 2 3
Existing interest 5.25% 5.25% 5.25%
Rate
Long term rate 3.75% 3.75% 3.75%
Rate of interest 4% 4% 4%
Rate of tax 20% 20% 20%
Year 1 Year 2 Year 3
Operating activities

Net income $258,616 $264,072 $276,050
Depreciation $76,000 $77,520 $79,040
Accounts receivable $0 $0 $0
Inventories ($5,070) ($10,343) ($16,135)
Accounts payable $0 $0 $0
Amortization 0 0 $0
Other liabilities 0 0 $0
Other operating cash flow items 0 0 $0
Total operating activities $329,546 $331,249 $338,955
Investing activities
Capital expenditures $0 $0 $0
Acquisition of business 0 0 0
Sale of fixed assets ($110,835) ($113,174) ($118,307)
Other investing cash flow items 0 0 0
Total investing activities ($110,835) ($113,174) ($118,307)
Financing activities
Long-term debt/financing ($9,231) ($9,601) ($9,985)
Preferred stock 0 0 0
Total cash dividends paid 0 0 0
Common stock 0 0 0
Other financing cash flow items 0 0 0
Total financing activities ($9,231) ($9,601) ($9,985)
Cumulative cash flow $209,479 $208,475 $210,663
Beginning cash balance ($41,850) $167,629 $376,104
Ending cash balance $167,629 $376,104 $586,767
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