Streets of asia

1. Executive Summary

Vision, by trend setting, entrepeurship

Mission, aspiring entrepeurnear and idea and create opportunities for them to come together and setup their own business

Expression of youth by using their crativity and bring in their own idea products to sell

Beyond boundaries, a fusion of different culture over asia

Recreation, provides activities recreation activities


2 The Opportunity

2.1 Description of Business/Product Idea

To create a place for shoppers in the wee hours. To put together a place blending in culture from all over Asia, through fashion and culinary. I call it the “Streets of Asia”. Streets of Asia will become a popular spot for families, couples and friends to come together for food and shopping. It will also be our very own tourist attraction for Singapore. Walking through Streets of Asia will take you through different places in Asia, from Japan to Korea and Hong Kong. You would be able to shop for items that are normally only available at their respective countries. You would be able to taste the food from all over Asia, all at an affordable price, at a time where most shopping malls have already close, and at a convenient location, right at the heart of orchard road.

2.2 Target Market/Customer Segment: Description

We would be looking at customer segment across all age group, from teenagers, couples, families, working class adults and even tourist. We will be working with Singapore Tourism board to promote Streets of Asia, When you think of Taiwan, you think of Shihling Night Market. When you think of Thailand, you think of weekend market. When you think of Singapore, you will think of the good food and shopping from the Streets of Asia.

2.3 Target Market Trends & Needs Addressed

Normal shopping hours usual end at 10pm, even on weekends. There is a market segment from teenagers to working class adults, who have difficulty finding activities or places to go to after 10pm. Most popular activities would be KTV, Movies, or drinking at pubs or dancing at clubs.

Many cry out for a place where they can eat and shop after the normal shopping hours, especially for weekend where people are more incline to stay out late. There are actually quite a large number of going to cafes not for food but just a place so that they can chill out. You can see that even after midnight movies, many will sit down nearby, go to café to get a drink, and simply hang. They are reluctant to return home yet they have very limited options as to what they can do.

With Streets of Asia, many could come over after movie, after the usual shopping hours, to get a late supper, some casual shopping and a place to chill out after most have close shops.

In Orchard Road alone, we are able to draw crowd from movie goers from Cineleisure, Plaza Singapura and The Cathay. Every 2 hours there would be a movie ending with hundreds of movies goers getting stuck at Orchard Road with no other Shopping Mall open. Especially on weekends, most of the above mentioned movie theatres are filled even to the first row. Nearby there is also people that goes to KTV and LAN gaming. Not forgetting, nearby crowd from Clark Quay, Boat Quay, Demsey Road and Holland Village. For most of them, they will be driving and it would be easy for them to pop by and have some snacks and do some casual shopping before they head home.

2.4 Competition

During Shopping Hours

It might seem that we are competing with Shopping Mall and Restaurant from not just SCAPE and Cineleisure, but we are the only street styled market in Orchard Road. We are not competing with them directly as the food and range of items that we have at Streets of Asia are quite different. In terms of pricing for food as well as fashion, we are also on a different platform compared to the rest of store in Orchard Road.

After Shopping Hours

Most of the shops in Orchard road are close after the shopping hours, nearby SCAPE area only Xin Wang Hong Kong Café and Pasta Mania are open.

2.5 Assessment of Market Opportunity: Size, Growth, Share

Being the first Street Market in Singapore, we are have the luxury of having the whole market to ourselves. In terms of growth, there are plenty of markets to tap into. Especially the tourism sector. Singapore has seen an increase in revenue generated from tourism, the opening of the casinos have attracted many tourist from all over the world. We can also work with international events such Youth Olympic, and also upcoming F1 racing. These would actually draw in quite substantial revenue from tourism on top of our own market

3 Marketing: Strategy, Costs, Investments

3.1 Product/Feature/Benefit/Positioning

We have a street market operating from shopping hour right up till late night and wee hours over the weekends. We have a food from all over Asia, fashion from trend setting country, a one stop station to see not just Singapore but culture from all over Asia. We position ourselves as a spot where you can find a good bargain as well as good food to fill your stomach.

3.1 Product price

Due to the variety of pushcart, most have different prices due the diversity of items sold. As a mission of Streets of Asia, we are here to provide a place for you to find good food and spot a bargain, thus vendors would have to keep to a certain price range for the products sold. This is to ensure Streets of Asia remains on a level different from the rest of the shopping mall in Singapore, to attract customer segment from all across all age group by making the pricing affordable to them.

We would be looking at prices comparable to heartland shopping mall. For a bowl of fishball noodle you would be able to get at around $3.50 to $4. For a dress, you could get for about $10-$20. There would be accessories that you might be able to shop for below $5. That would be the pricing that we are looking at.

3.2 Product Promotion

We would be able to do tie up among ourselves, i.e. if a shopper spends $10 on shopping, he/she can get $1 off food and beverages from any stall.

4 Operations: Strategy, Costs, Investments

4.1 Sourcing, Purchasing-Manufacturing, Service Delivery Cost

Push Carts will be provided by SCAPE. Thus no sourcing cost incurred.
There will be a logistic cost as there will be importing of goods from oversea as well as advertising costs.

Logistic cost would include traveling to oversea to bring in goods or linking up potential supplier with local vendor.

Part of it will also be use for administrative purposes and a bit of renovation works, including tables and chairs.

The main portion of the cost is due to the advertising campaign

Fix cost

Advertising Cost ( Media – MediaCorp) $200,000
Advertising Cost ( Newspaper - SPH ) $100,000
Renovation Cost $20,000
Logistic Cost $30,000

Total cost $350,000


4.2 Distribution/Sales Cost

N.A

5 Organisation/Management

5.1 Organisational Structure

Managing Director
Marketing Director A&P Director

Advisor (Independent)

5.2 Board of Directors and Management Team

Managing Director – Samuel Goh
I will be in charge of the overall planning, finance and operations. I have been with the events industry for the past 5 years and previously have experience in events and sales, including management role.

Marketing Director – Cheng Shu Fen
She will be in charge of sales and marketing. She have 10 years of experience with SPH, dealing with events, marketing and promotions.

Advertising and Promotions Director – Leong Cheng Wei
He will be in charge of events, promotion tie-up, push cart layout and advertising. Mr Leong and Ms Cheng will be working hand in hand together with Tourism Board to draw traffic in. He has been in event and designing role with Music and Movement for the past 8 years. Handling various projects like President Design Award and Major outdoor events.

Business Advisor
Juanita, she will be acting as an advisor for Streets of Asia, in a non-profit position. She has a wealth of experience in pushcart business. She has been in the event and advertising industry for the past 30 years, dealing with pushcart in shopping and heartland mall.


5.3 Remuneration of Management and Employees

All directors are the main shareholders of the company. Advisor will be strictly on a purely advisory role and non-profit basis.

6 Financial Analysis

6.1 Detail Assessment of Profitability/Income Statement


Costing For year 1 - 7 Sales For year 1 – 7

1 pushcart $5,000 1 pushcart $5,500
20 pushcart $100,000 20 pushcart $110,000

Per month rental $100,000 per month sales $110,000
Per year rental $1,200,000 Per year sales $1,320,000

Profit For year 1 - 7

Monthly profit $10,000
Yearly profit $120,000

Additional Profit:

Estimated sales for pushcarts

Year 1
Earning per pushcart
per month $8,000
per year $96,000

Total earning for all 20 pushcart
per month $160,000
per year $1,920,000

5% of Sales from pushcarts = $ 96000

Year 2 Year 5

Earning per pushcart Earning per pushcart
per month $8,500 per month $10,000
per year $102,000 per year $120,000

Total earning for all 20 pushcart Total earning for all 20 pushcart
per month $170,000 per month $20,000
per year $2,040,000 per year $2,400,000

5% of Sales from pushcarts = $ 102000 5% of Sales from pushcarts = $ 120000

Year 3 Year 6

Earning per pushcart Earning per pushcart
per month $9,000 per month $10,500
per year $108,000 per year $126,000

Total earning for all 20 pushcart Total earning for all 20 pushcart
per month $180,000 per month $210,000
per year $2,160,000 per year $2,520,000

5% of Sales from pushcarts = $ 108000 5% of Sales from pushcarts = $ 126000

Year 4 Year 7

Earning per pushcart Earning per pushcart
per month $9,500 per month $11,000
per year $114,000 per year $132,000

Total earning for all 20 pushcart Total earning for all 20 pushcart
per month $190,000 per month $220,000
per year $2,280,000 per year $2,640,000

5% of Sales from pushcarts = $ 114000 5% of Sales from pushcarts = $ 132000

Total Profit
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
$216,000 $222,000 $228,000 $234,000 $240,000 $246,000 $252,000
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Total Profit $216,000 $222,000 $228,000 $234,000 $240,000 $246,000 $252,000

Fix Cost ($350,000)

Profit to date ($134,000) $88,000 $316,000 $550,000 $790,000 $1,036,000 $1,288,000


Note: Electricity and Utility bills are borne by respective pushcart vendor.

6.2 Total Investment to Start & Operate the Business/Balance Sheet

Total Investment to start and operate the business would be $400000. Mainly this sum of money would be use for advertising and marketing purposes as well as initial deposit to SCAPE for the pushcart.

Logistic cost would include traveling to oversea to bring in goods or linking up potential supplier with local vendor.

Part of it will also be use for administrative purposes and a bit of renovation works, including tables and chairs.

Fix cost

Advertising Cost ( Media – MediaCorp) $200,000
Advertising Cost ( Newspaper - SPH ) $100,000
Renovation Cost $20,000
Logistic Cost $30,000

Total cost $350,000

The balance of $50000 will be use as reserve funds, should there be any unforeseen expenses.



6.3 Break even Analysis

Initial investment = $400000

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Total Profit $216,000 $222,000 $228,000 $234,000 $240,000 $246,000 $252,000

Fix Cost ($350,000)

Profit to date ($134,000) $88,000 $316,000 $550,000 $790,000 $1,036,000 $1,288,000

By 3rd quarter in Year 2, the shareholder would have gotten back the initial investment, as the balance $50000 is being held as liquid cash for unexpected expenses.

6.4 Cash Flow Statement

Cash Flow

Year 1

Initial Investment $400,000
Income from Vendor $1,416,000

Less Rental to SCAPE $1,200,000
Less Advertising Cost ( Media - MediaCorp) $200,000
Less Advertising Cost ( Newspaper - SPH ) $100,000
Less Renovation Cost $20,000
Less Logistic Cost $30,000

Net decrease in cash $134,000

Cash at beginning of period $400,000

Cash at end of period $266,000

Year 2


Income from Vendor $1,422,000

Less Rental to SCAPE $1,200,000





Net increase in cash $222,000

Cash at beginning of period $266,000

Cash at end of period $488,000

Year 3


Income from Vendor $1,428,000

Less Rental to SCAPE $1,200,000





Net increase in cash $228,000

Cash at beginning of period $488,000

Cash at end of period $716,000

Year 4


Income from Vendor $1,434,000

Less Rental to SCAPE $1,200,000





Net increase in cash $234,000

Cash at beginning of period $716,000

Cash at end of period $950,000

Year 5


Income from Vendor $1,440,000

Less Rental to SCAPE $1,200,000





Net increase in cash $240,000

Cash at beginning of period $950,000

Cash at end of period $1,190,000

Year 6


Income from Vendor $1,446,000

Less Rental to SCAPE $1,200,000





Net increase in cash $246,000

Cash at beginning of period $1,190,000

Cash at end of period $1,436,000


Year 7


Income from Vendor $1,452,000

Less Rental to SCAPE $1,200,000





Net increase in cash $252,000

Cash at beginning of period $1,436,000

Cash at end of period $1,688,000

6.5 Source of Capital: Proportion of Debt and Equity

Each of the shareholders will come up with $50000, adding up to $150000. The balance of the capital will be obtained from Angel Investor by issuing shares.

6.6 Expected Financial Returns: Valuation, NPV, IRR

Net Present Value
Assuming the cost of equity to be 10%,
Year Cash Flow ($) Discount Factor Present Value ($)
1 (2012) 266000 0.9091 241820.60
2 (2013) 488000 0.8264 403283.20
3 (2014) 716000 0.7513 537930.80
4 (2015) 950000 0.6830 648850
5 (2016) 1190000 0.6209 738871

Total Present Value = 241820.60 + 403283.20 + 537930.80 + 648850 + 738871
= $2570755.60
Less: Initial Investment = $400000
Net Present Value = Total Present Value – Initial Investment
= $2170755.60


6.6 Conclusion: Valuation & Attractiveness/Viability of Business

Streets of Asia is the first street style market with food and fashion from all over Asia, this would most likely to attract various media and coverage, which in turn will draw crowd within our local market.

Working with the tourism board will also enhance our image and set ourselves as a must go tourist attraction. We would tap into the tourism market and gain exposure to international events such as F1 racing.

Looking at the business model, we will be taking a profit from the vendors in terms of rental (10%) and sales (5%). Except for the fix cost, which is a one time cost use to market Streets of Asia, there after majority of the cost are borne by the vendors.

As mention above, we would mostly likely be able to tap into assistance from tourism board, local media coverage and even SCAPE’s own marketing campaign. With the break even point coming in just 3rd quarter of 2nd year, this business opportunity looks extremely viable and substainable.

7 Risk Mitigation
7.1 Financial Risks

As the capital is raise for a one time off cost, mainly for advertising purposes. We do not foresee the need to raise further capital in the future.

7.2 Business Risks

There are a couple of risks that might possibly affect the business proposal

1. Vendor
Vendors are the stars of the show for the project. We need them to be on the stage at all time. When patrons comes to Streets of Asia, we need all 20 vendors to be operating. We cannot afford to have Vendor operating at their own schedule or having a few vendor pulling out at the same time.

The solution will be to have a contract with the vendor clearly stating the terms and operation guidelines. I.e. operating hours, 3-6 months advance deposit in order for the management team to get new vendors to replace them.

2. Cleanliness and hygiene
Although we are a street style market, we cannot allow any lapses in food hygiene as well as the overall cleanliness.

Spot checks by the management will be implemented and for food vendor, daily cleaning is required.
3. SCAPE
Moving forward with SCAPE, we might face situation like rental increment, which will seriously impact our business model.

Since SCAPE is owned by a non-profit organisation, if they decided to increase the rental, there would definitely be a compelling reason for it. If the reason make sense, we would definitely be able to negotiate with the vendors to increase the rental thus covering the cost.

Another solution is to regularly keep in touch with SCAPE management team to evaluate their strategy and current market conditions. We will also enter long term contract with SCAPE, thus if there is a rental increment, we would be able to have time to negotiate with the vendors and should they decide not to stay with us, we can have enough time to search for new vendors.

8 Investment proposal
8.1 Total Capital Required from Investors

As mention previously, $150000 will be raise from the 3 shareholders. The remaining $250000 will be required from investors.

8.2 The Investment deal: % shareholding offered

250000/400000 = 62.5% shareholding
This will represent that the investor is entitled to 62.5% of the company sales.