8.

Risk and Reward

8.1

financial support

To set up a DOBI business the financial support is very crucial. The first challenger for every
entrepreneur is to fund enough financial support to set up the business. The risk is when the
financial support is sufficient , then all the business plan will be waste and fail. The plenty of
money need to set up and run a DOBI business. For example, to buy DOBI equipments, shop
decoration, stocks, deposit for rent and operational cost . It will cost a lot of money .Since the
service set up by UKM students inside UKM area , the UKM-CESMED can provide a part of
financial support but it's not enough and must seeking the extra fund from third parties such as
own money pocket and loan. Take loan is very riskiest since there are no guarantee the business
will run smooth and able to repay for the loan. The original cost also increase greatly since the
economy nowadays grow so slowly and be charger for GST by 6%. For example if the original
cost to set up for DOBI shop is RM 300,000 but the price to pay is RM 300,000 x 1.06 = RM
318,000 . the extra cost is about RM 18,000. That calculation just an approximation minimum
extra cost. The cost can be increase as the product that been multiple charger. For example the
process to produce a product is from raw material to the manufacturing factory. Then, the
product transported to the super market. The charger has been taxed for each process. in
consequence, the price of the products will increase and in result the service price for DOBI also
must be increase to support for the cost of the operation. This will make more difficult to fund
enough financial support to set up the DOBI business.

8.2

Man power and Service

To run a business, it`s important to hired enough and capability worker to make sure the service
run smoothly. The risk is the short number of worker able to work for DOBI shop. In the Bandar
Baru Bangi, there are plenty of the part time job which come with well payment. For started
DOBI shop can`t pay much salary for the worker. The new worker usually inexperience and has
risk to receive complaint from the customer. This should be avoided as the DOBI shop is still
new and must be at offer top service to the customer in order to has their loyalty. In case for the
cloths get damage from the poor service, the DOBI shop must pay the replacement as well as
lose the customer thrusts in the future.

8.3

Competition

There are many DOBI service in the Bandar Baru Bangi. They offer the best service come with
reasonable price. The service maybe self collect or the DOBI will pick up the cloths. This will
make the new DOBI shop difficult to compete as the customer stay loyal with the old
establishment DOBI shop. Next, the collage inside UKM also provide with self service washing
machine. This is very popular within the student as they can wash their own cloths with cost only
RM 2.00 per wash. This self service also open for 24/7 hours. The price RM 2.00 is very cheap
compare to the DOBI price which around RM 2.50 per kg. The risk is the new DOBI shop
cannot compete with the old establishment DOBI shop and the business will run down.

8.4

Security and insurant

The security is very important in order to protect the assets of the DOBI shop. The DOBI shop
has risk to be broken down by the thief and all the DOBI assets will be lose. After losing the
assets, the DOBI shop has the probability fail to stand up for further business and the worst the
business will go bankrupt. In order to secure the security, the DOBI shop must buy an insurant
but it will cost a lot of money.

8.5

Rewards

The main rewards if our project succeeds :

If we accomplish the elements of our plan, our DOBI shop business will run smooth and make a
plenty of profit. This will open the job opportunities for ukm students and teach them how to set up
the business and maybe we will held free seminar and guidelines about the business. The DOBI shop
also can become sponsor for any events held by ukm. In addition, we can open more branch outside
ukm to fulfill customer`s demand. This will encourage the ukm students to follow our step to set up
business.