Description
This is about business plan for ethnic goods marketing.
Business Plan
Who will read your Plan?
• • • • • Potential Investors Potential Customers Government Agencies Any other interested YOU
Some tips
• Think What Questions They will Ask • Make the Plan interesting, concise & good looking • The Plan should reflect your Passion • Have clear and logical sections and appendices • Be careful to retain Business Secrecy
Gather the information
• • • • • • • Resume of Founders & Key Managers Sales and Market Statistics Potential Customers and anticipated demand Competitors and your assessment Financial Information R & D Information Product Process & Sources of Supply (Machines & Materials) • Regulations and laws concerning your Business • Intellectual Property Right Issues (IPR) • Press Articles related to your plan
Contents of your Business Plan
• The Executive Summary:
– para 1 which is common; – para 2 which is focused to the specific reader.
• The Nature of your Business:
– – – – – – – – Vision Statement Mission Statement Long-term objectives Short-term objectives Key Personnel Legal Structure (ownership structure) Professional Advisors Contact Details (Address, Tel. No.,Fax No. , E-mail ID, Website)
Brief Description of your Business
• • • • Product / Service being offered Your USP (Unique Selling Point) IPR Issues Legal and Statutory requirements
The Market & the Competition
• • • • • Target Market Market Positioning Clients Strategies Public Relations
Marketing Plan
• • • • Anticipated Demand Marketing Methods Sales and Distribution Network Pricing and Promotional Policies
Financial Plan
• • • • • • • • Requirement of Fixed Assets Requirement of Working Capital Sources of Funds (Long & Short-term) Projected Profit & Loss Statement Projected Balance sheet Projected Cash Flow Statement Financial Ratios Concessions and Subsidies
Operational Plan
• • • • Your Location Infrastructure needed and available Choice of technology Project implementation schedule (Bar Chart; PERT/CPM) • Factory Layout (optional) • Insurance
HR Plans
• • • • • Manpower Planning Organization Structure Departmentation Recruitment policies Training & Development
“End up with bibliography or references which forms the base of your Business Plan”
Typical Performa of Business Plan
By Colin Barrow in “The Essence of Small Business”
The Business and its Management
• • • • • • • History and position to date Current mission Objectives, Short term Objectives, Long term The current key management team Legal & existing capital structure Professional advisors
Products or Services
• Descriptions & applications • Readiness for market of new products/services • Comparison with competition, performance and economics • Future potential/product development
Market & Competitors
• • • • • • • • Description of customer needs and benefits Market and segment size & growth Customer decision criteria Target market segments (showing differentiation from competition) Competitive strengths & weaknesses Opportunities & threats ahead Sales forecast Marketing strategy covering:
– – – – Pricing Policy Promotional Plans Choice of location and premises Distribution channels
Selling
• Current selling methods • Proposed selling methods
Management & Staffing
• Organization Structure • Recruitment & Selection Techniques • Appraisal System
Manufacturing
• • • • • The Manufacturing Process Facilities needed Equipment & Machinery needed Quality Control plans Sources of supply of key materials
Forecasts & Financial Data
• • • • Profit & loss accounts Balance Sheets Cash flows Ratio: Return on Investment (ROI), Profitability Ratio, Current Ratio, Debt Equity Ratio, Debt Service Coverage Ratio
Funding
• • • • • Promoter’s Contribution Unsecured loans Government Subsidies Secured loans Any other sources
Appendices
• • • • • • Management team biographies Names and details of professional advisors Technical data and drawings Details of patents, copyright, designs Audited accounts Consultant’s reports or other published data on products, markets, etc. • Orders on hand and enquiry status • Detailed market research methods and findings • Organization charts
Business Plan for Ethnic Goods Marketing
NEXUS
“Next us into the world of business”
Sanskruti collections
The COMPANY
A unique Corporate Art Center, we offer the time saving convenience of choosing works of art from its extensive archives to Corporations, Hotels, Architects, and Art Lovers.
At any given point of time Sanskruti Collections would have the Art and Paintings available in a variety of styles, media and themes with elegant, mounts and frames.
Our business type would be Merchandising as well as a Service one.
of
a
MISSION
Profitable growth of our Ethnic Goods sector.
Improving the profitability of our ethnic goods business through strategic initiatives Securing the future of our antiques and ensuring value for our customers
VISION
“We look forward to provide a range of ethnic goods and accordingly meet customer specifications to the present generation and bring back the lost Indian glory.”
THE LOCATION
• •
•
• • • •
The location is chosen keeping in mind the following aspects: There is a high flow of public Its an open space where there could be better provision for displays It is a better landmark i.e. Near to Shoppers Stop Ample space for car parking Proper interiors of the area Provision of public transportation at the nearest The area has a number of hotels in the surroundings.
OUR PRODUCTS
Product Suite
ANTIQUES PAINTINGS DECOR ITEMS STATUES MURANOS
IMAGE
We believe in providing a showroom with a very good ambience, a clean and comfortable environment with an ethnic touch.
Across the length and breadth of Sanskruti we are creating a truly consumer focused environment.
STOCK CONTROL
Customized goods Bar Coding System Stock check after every six months Goods shall be exchanged with suppliers if not sold Stock turnover to be done twice a year
Our concentration will be more on Jaipur, Jodhpur, Udaipur, Dholpur, Makrana, Jaisalmer and other places and we are planning to enter into a 3-year agreement with these cooperative societies
THE BUYING
THE TERMS OF BUYING
Freight charges to be borne by the purchaser Credit period for 3 months regarding payment 15 days to receive the orders regarding antiques and handicrafts & 5days in the case of paintings and Muranos No cash repayments. The goods, which have no demand, can be exchanged for some other new ones provided they are in a good condition.
Terms & Conditions of Transportation:
All the freight charges and taxes would be borne by the purchasers of the product i.e. by us In case of any damage, theft or any other mishappenings the damage would be borne by the transportation agency Payments would be done on yearly bases
WAREHOUSING
Maximum the days taken by our supplier in order to deliver the goods is 3 days by roadways. In the case of buying from the suppliers the transportation costs will be borne by us. In the case of our retailers the transportation costs will be borne by them and not us. Regarding the supplier’s policy on fill in orders, we will be purchasing from them in bulk orders through roadways. The time taken for the delivery to get into the store would be around 2 days.
THE MARKETING PLAN
THE MARKET SITUATION
MARKET RESEARCH Target area : Chembur - Ghatkopar area As per the study There is no basic need for the ethnic products. There are limited customers who are keen in ethnic and have the purchasing power to pay. The general desire of the customers towards ethnic products has increased Present generation prefer having an ethnic touch to their home atmosphere. The desire to possess ethnic goods is more from the Upper Middle class and the Elite class.
SWOT ANALYSIS
STRENGTHS
Our products would be unique by itself i.e. creativity with ethnic touch along with a concept. We possess the knowledge about the product along with the interest to operate in this field. Since Sanskruti Collections is a TM (trade mark) one, we can have franchising of our store as part of our expansion strategy. We give in our part of the contribution towards social responsibility but upliftment of rural sector and by generating employment opportunities.
SWOT ANALYSIS
WEAKNESS
Gestation gap in these products is wider hence bulk orders cannot be satisfied within a short period. Each product is unique because of which the demand for the same product cannot be satisfied.
SWOT ANALYSIS
OPPORTUNITIES The demand for these products is on an increasing scale. There are vast export opportunities. There are few competitors in this field hence there is scope for us to capitalize.
THREATS The risk involved is much huge in ethnic products dealing.
OBJECTIVES OF THE MARKETING PLAN
FINANCIAL OBJECTIVES To increase the sales To capture new markets To reduce the cost and increase the profit margin Increase in growth rate Welfare of customers, creditors etc.
MARKETING OBJECTIVES Achieve total sales revenue of Rs 90 lacs in 2006, which represents a 10 % increase from the last year. Expand the consumer awareness of our brand.
MARKETING STRATEGY
PLACE
outlet PRODUCT
Target Market Distribution
Product Line Positioning
PRICE PEOPLE PROMOTION
COMPETITION IN THE INDUSTRY
The following are our 4 main competitors: • SADGURU COLLECTIONS, KHAR • CONTEMPORARY ART, ANDHERI • ABRA KA DABRA, KHAR • SUYOG COLLECTIONS, CHEMBUR Our indirect competitors could be the Archie's Gallery and other gift shops when it comes to selling small statues, posters etc.
To provide free home delivery Cash purchases Credit cards acceptance Delivery of items that are at display in 1-2 days. Ethnic items, which are not in hand, the delivery of the same in approximately 15 days. Our merchandise is sold on all 3 types of pricing i.e. High, Medium and Low. • Uniqueness of the product, • The quality difference, its history or importance • Its placing that will suit the best in the customers house by our experts in Vaastu Shastra.
PRICING & SALES
ADVERTISING & SALES PROMOTION
Our image would be that of a corporate art center Our price range would be less than our competitors. The price range would be between Rs. 50 - Rs. 1 lakh. Customer service would be the USP in our showroom. Customized art frameworks One of the USP’s of our showrooms would be the consultation regarding Vaastu Shastra.
SALES PROMOTION
IN-STORE PROMOTION To encourage people to buy, self-service stores rely on layout, attractive displays, signs and clearly marked prices on the items offered for sale. Our store would combine these techniques with personal selling.
Which will include Provide festive discount offers during Diwali, Christmas, and New Year etc. Celebrate Regional week
LAYOUT oF THE SHOWROOM
10 11 12 2
6
3 5
4
13
14
EXTERNAL PROMOTION
Advertisements in regular Banners at spots where there is regular flow of people. Exhibitions in some of the 5 star hotels Exhibitions in temples Contact interior decorators.
WISH TO OWN ANTIQUES ???? But where can we find them ??? Worried……?? So much interested? There’s good news…….
A unique Corporate Art Centre, presenting Art and Paintings available in a variety of styles, media and themes with elegant, mounts and frames.
Krushal Towers, Shop No. 9 & 10, M. G. Road, Near Shopper's Stop Amar Mahal, Chembur, Mumbai – 89
Monday closed
ACTION PLAN
“Vision without action is a daydream, Action without vision is a nightmare.”
MONTH
1st January 2005 December 2004 November 2004 October 2004 September 2004 August 2004 May 2004 March 2004 November 2003 September 2003 June 2003
ACTIVITIES
Inauguration Stocks to be in hand & ready for exhibition Start promotion of our showroom Place orders with the suppliers Interior works begin Purchasing land and building Applying for loans in financial institution. Preparation of business plan Scanning of suppliers through market research Market research of target area Study about ethnic goods.
MANAGEMENT PLAN
THE
STRUCTURE oF tHE MANAGEMENT TEAM
SANSKRITI COLLECTIONS
SUMANGALA SHETTY (Partner) TRUPTI UTCHIL (Partner) SUCHITRA C.R. (Partner)
MANAGER (In Store)
MANAGER (Logistics)
MANAGER (Marketing)
CUSTOMER FACILITATOR
CUSTOMER FACILITATOR
THE FINANCIAL PLAN
PROJECTED CASH FLOW STATEMENT RECEIPTS PARTICULARS Owners Contribution: R s Rs Rs PARTICULAR S Salary 2500000 2500000 2500000 750000 Transport & 0 Distribution 150000 95000 80000 20000 90000 450000 828900 PAYMENTS Rs Rs 504000 Rs
Sumangala Shetty
Trupti Utchil Suchitra C.R.
Advertisemen t
Long term loans Friends & Relatives 300000 0 Conveyance Stationery 150000 Preliminary 0 expenses Interest on Bank @ 15% Insurance
Purchases
37500 00
less: Creditors
less: Returns Freight
18000 00
1950000 50000 1900000 1500000
Tax
General Reserves Short Term investments Fixed Assets Land & building Furniture Office equipments 1000000 0 50000 90000
500000
500000 1500000
1014000 0
Distribution of profits Sumangala Shetty Trupti Utchil
272166
272167
Suchitra C.R.
272167
816500
Cash (transfer to balance sheet)
167150 0
187000 00
187000 00
ESTIMATED BALANCE SHEET AS ON 31ST DECEMBER 2005
LIABILITIES Particulars Owners Contribution Sumangala Shetty Trupti Utchil Suchitra C R
2500000
ASSETS Rs Particulars Fixed assets Land & Building Less: depreciation
7500000 10000000
Rs
Rs
Rs
2500000
1000000
9000000
2500000
General Reserve
500000
Furniture & Fixtures Less: Depreciation
50000
47500
2500
Long term Loans Friends & relatives Current Liabilities Creditors Provision for taxation
3000000
Office Equipments Fax Machine Computer Card swap mac. Less: depreciation Medium term investments Current Assets Inventory Debtors Cash
25000 45000 20000 90000 9000 81000
1500000
1800000
500000
1500000
1000000 1500000 1671500 4171500 14800000
14800000
THE RATIOS
Current Ratio: = Current Assets Current Liabilities = 1.831
Debt Equity Ratio: = Debt Debt + Equity = 0.375 Gross Profit Ratio: = Gross Profit * 100 Sales = 52.72%
THE RATIOS
Net Profit: = Earnings After Interest and Tax Sales = 22.01%
Interest Coverage: = Earnings before Interest and Tax Interest = 5.03%
Return on Investment: = Earnings Before Interest and Tax Investment in assets = 15.31%
BREAK EVEN ANALYSIS
BREAK EVEN ANALYSIS
PARTICULARS Salary Telephone charges Electricity charges Transport & Distribution Advertisement Conveyance Postage & Stationery Preliminary expenses Interest on Bank@15% Freight TOTAL FIXED COST 504000 7200 6000 VARIABLE COST 7800 12000 150000 95000 80000 10000 90000 50000 150000 644800
10000 400000
927200
BREAK EVEN ANALYSIS
BREAK EVEN ANALYSIS (Rs.) = Total fixed cost 1 – total variable cost Sales
BEA (Rs.)
=
927200 1- 644800 8200000
927200 1-0.78
= =
=
927200 0.922 Rs. 1005639.91
TECHNO ECONOMIC FEASIBILITY
TECHNICAL FEASIBILITY • Demand for ethnic goods : Location chosen by us is a prime area. Floating Population: Many rich localities in Ghatkopar and Chembur • Supply of Goods for sale : Three year agreement Other Suppliers in case of any problem Transportation agreement : One year agreement • Purchase Furnished Shop: Purchase of fully Furnished Shop that has connections to all amenities.
TECHNO ECONOMIC FEASIBILITY
ECONOMIC FEASIBILITY
• • • • •
Creation of employment Increase in national Revenue Pollution free business Value addition of the economy Creating market for a product which will enhance the Indian culture
CONCLUSION
“Coming together Is beginning Keeping together Is progress Working together Is Success “
Sanskruti
collections
www.sanskruticollections.com
doc_758163968.pptx
This is about business plan for ethnic goods marketing.
Business Plan
Who will read your Plan?
• • • • • Potential Investors Potential Customers Government Agencies Any other interested YOU
Some tips
• Think What Questions They will Ask • Make the Plan interesting, concise & good looking • The Plan should reflect your Passion • Have clear and logical sections and appendices • Be careful to retain Business Secrecy
Gather the information
• • • • • • • Resume of Founders & Key Managers Sales and Market Statistics Potential Customers and anticipated demand Competitors and your assessment Financial Information R & D Information Product Process & Sources of Supply (Machines & Materials) • Regulations and laws concerning your Business • Intellectual Property Right Issues (IPR) • Press Articles related to your plan
Contents of your Business Plan
• The Executive Summary:
– para 1 which is common; – para 2 which is focused to the specific reader.
• The Nature of your Business:
– – – – – – – – Vision Statement Mission Statement Long-term objectives Short-term objectives Key Personnel Legal Structure (ownership structure) Professional Advisors Contact Details (Address, Tel. No.,Fax No. , E-mail ID, Website)
Brief Description of your Business
• • • • Product / Service being offered Your USP (Unique Selling Point) IPR Issues Legal and Statutory requirements
The Market & the Competition
• • • • • Target Market Market Positioning Clients Strategies Public Relations
Marketing Plan
• • • • Anticipated Demand Marketing Methods Sales and Distribution Network Pricing and Promotional Policies
Financial Plan
• • • • • • • • Requirement of Fixed Assets Requirement of Working Capital Sources of Funds (Long & Short-term) Projected Profit & Loss Statement Projected Balance sheet Projected Cash Flow Statement Financial Ratios Concessions and Subsidies
Operational Plan
• • • • Your Location Infrastructure needed and available Choice of technology Project implementation schedule (Bar Chart; PERT/CPM) • Factory Layout (optional) • Insurance
HR Plans
• • • • • Manpower Planning Organization Structure Departmentation Recruitment policies Training & Development
“End up with bibliography or references which forms the base of your Business Plan”
Typical Performa of Business Plan
By Colin Barrow in “The Essence of Small Business”
The Business and its Management
• • • • • • • History and position to date Current mission Objectives, Short term Objectives, Long term The current key management team Legal & existing capital structure Professional advisors
Products or Services
• Descriptions & applications • Readiness for market of new products/services • Comparison with competition, performance and economics • Future potential/product development
Market & Competitors
• • • • • • • • Description of customer needs and benefits Market and segment size & growth Customer decision criteria Target market segments (showing differentiation from competition) Competitive strengths & weaknesses Opportunities & threats ahead Sales forecast Marketing strategy covering:
– – – – Pricing Policy Promotional Plans Choice of location and premises Distribution channels
Selling
• Current selling methods • Proposed selling methods
Management & Staffing
• Organization Structure • Recruitment & Selection Techniques • Appraisal System
Manufacturing
• • • • • The Manufacturing Process Facilities needed Equipment & Machinery needed Quality Control plans Sources of supply of key materials
Forecasts & Financial Data
• • • • Profit & loss accounts Balance Sheets Cash flows Ratio: Return on Investment (ROI), Profitability Ratio, Current Ratio, Debt Equity Ratio, Debt Service Coverage Ratio
Funding
• • • • • Promoter’s Contribution Unsecured loans Government Subsidies Secured loans Any other sources
Appendices
• • • • • • Management team biographies Names and details of professional advisors Technical data and drawings Details of patents, copyright, designs Audited accounts Consultant’s reports or other published data on products, markets, etc. • Orders on hand and enquiry status • Detailed market research methods and findings • Organization charts
Business Plan for Ethnic Goods Marketing
NEXUS
“Next us into the world of business”
Sanskruti collections
The COMPANY
A unique Corporate Art Center, we offer the time saving convenience of choosing works of art from its extensive archives to Corporations, Hotels, Architects, and Art Lovers.
At any given point of time Sanskruti Collections would have the Art and Paintings available in a variety of styles, media and themes with elegant, mounts and frames.
Our business type would be Merchandising as well as a Service one.
of
a
MISSION
Profitable growth of our Ethnic Goods sector.
Improving the profitability of our ethnic goods business through strategic initiatives Securing the future of our antiques and ensuring value for our customers
VISION
“We look forward to provide a range of ethnic goods and accordingly meet customer specifications to the present generation and bring back the lost Indian glory.”
THE LOCATION
• •
•
• • • •
The location is chosen keeping in mind the following aspects: There is a high flow of public Its an open space where there could be better provision for displays It is a better landmark i.e. Near to Shoppers Stop Ample space for car parking Proper interiors of the area Provision of public transportation at the nearest The area has a number of hotels in the surroundings.
OUR PRODUCTS
Product Suite
ANTIQUES PAINTINGS DECOR ITEMS STATUES MURANOS
IMAGE
We believe in providing a showroom with a very good ambience, a clean and comfortable environment with an ethnic touch.
Across the length and breadth of Sanskruti we are creating a truly consumer focused environment.
STOCK CONTROL
Customized goods Bar Coding System Stock check after every six months Goods shall be exchanged with suppliers if not sold Stock turnover to be done twice a year
Our concentration will be more on Jaipur, Jodhpur, Udaipur, Dholpur, Makrana, Jaisalmer and other places and we are planning to enter into a 3-year agreement with these cooperative societies
THE BUYING
THE TERMS OF BUYING
Freight charges to be borne by the purchaser Credit period for 3 months regarding payment 15 days to receive the orders regarding antiques and handicrafts & 5days in the case of paintings and Muranos No cash repayments. The goods, which have no demand, can be exchanged for some other new ones provided they are in a good condition.
Terms & Conditions of Transportation:
All the freight charges and taxes would be borne by the purchasers of the product i.e. by us In case of any damage, theft or any other mishappenings the damage would be borne by the transportation agency Payments would be done on yearly bases
WAREHOUSING
Maximum the days taken by our supplier in order to deliver the goods is 3 days by roadways. In the case of buying from the suppliers the transportation costs will be borne by us. In the case of our retailers the transportation costs will be borne by them and not us. Regarding the supplier’s policy on fill in orders, we will be purchasing from them in bulk orders through roadways. The time taken for the delivery to get into the store would be around 2 days.
THE MARKETING PLAN
THE MARKET SITUATION
MARKET RESEARCH Target area : Chembur - Ghatkopar area As per the study There is no basic need for the ethnic products. There are limited customers who are keen in ethnic and have the purchasing power to pay. The general desire of the customers towards ethnic products has increased Present generation prefer having an ethnic touch to their home atmosphere. The desire to possess ethnic goods is more from the Upper Middle class and the Elite class.
SWOT ANALYSIS
STRENGTHS
Our products would be unique by itself i.e. creativity with ethnic touch along with a concept. We possess the knowledge about the product along with the interest to operate in this field. Since Sanskruti Collections is a TM (trade mark) one, we can have franchising of our store as part of our expansion strategy. We give in our part of the contribution towards social responsibility but upliftment of rural sector and by generating employment opportunities.
SWOT ANALYSIS
WEAKNESS
Gestation gap in these products is wider hence bulk orders cannot be satisfied within a short period. Each product is unique because of which the demand for the same product cannot be satisfied.
SWOT ANALYSIS
OPPORTUNITIES The demand for these products is on an increasing scale. There are vast export opportunities. There are few competitors in this field hence there is scope for us to capitalize.
THREATS The risk involved is much huge in ethnic products dealing.
OBJECTIVES OF THE MARKETING PLAN
FINANCIAL OBJECTIVES To increase the sales To capture new markets To reduce the cost and increase the profit margin Increase in growth rate Welfare of customers, creditors etc.
MARKETING OBJECTIVES Achieve total sales revenue of Rs 90 lacs in 2006, which represents a 10 % increase from the last year. Expand the consumer awareness of our brand.
MARKETING STRATEGY
PLACE
outlet PRODUCT
Target Market Distribution
Product Line Positioning
PRICE PEOPLE PROMOTION
COMPETITION IN THE INDUSTRY
The following are our 4 main competitors: • SADGURU COLLECTIONS, KHAR • CONTEMPORARY ART, ANDHERI • ABRA KA DABRA, KHAR • SUYOG COLLECTIONS, CHEMBUR Our indirect competitors could be the Archie's Gallery and other gift shops when it comes to selling small statues, posters etc.
To provide free home delivery Cash purchases Credit cards acceptance Delivery of items that are at display in 1-2 days. Ethnic items, which are not in hand, the delivery of the same in approximately 15 days. Our merchandise is sold on all 3 types of pricing i.e. High, Medium and Low. • Uniqueness of the product, • The quality difference, its history or importance • Its placing that will suit the best in the customers house by our experts in Vaastu Shastra.
PRICING & SALES
ADVERTISING & SALES PROMOTION
Our image would be that of a corporate art center Our price range would be less than our competitors. The price range would be between Rs. 50 - Rs. 1 lakh. Customer service would be the USP in our showroom. Customized art frameworks One of the USP’s of our showrooms would be the consultation regarding Vaastu Shastra.
SALES PROMOTION
IN-STORE PROMOTION To encourage people to buy, self-service stores rely on layout, attractive displays, signs and clearly marked prices on the items offered for sale. Our store would combine these techniques with personal selling.
Which will include Provide festive discount offers during Diwali, Christmas, and New Year etc. Celebrate Regional week
LAYOUT oF THE SHOWROOM
10 11 12 2
6
3 5
4
13
14
EXTERNAL PROMOTION
Advertisements in regular Banners at spots where there is regular flow of people. Exhibitions in some of the 5 star hotels Exhibitions in temples Contact interior decorators.
WISH TO OWN ANTIQUES ???? But where can we find them ??? Worried……?? So much interested? There’s good news…….
A unique Corporate Art Centre, presenting Art and Paintings available in a variety of styles, media and themes with elegant, mounts and frames.
Krushal Towers, Shop No. 9 & 10, M. G. Road, Near Shopper's Stop Amar Mahal, Chembur, Mumbai – 89
Monday closed
ACTION PLAN
“Vision without action is a daydream, Action without vision is a nightmare.”
MONTH
1st January 2005 December 2004 November 2004 October 2004 September 2004 August 2004 May 2004 March 2004 November 2003 September 2003 June 2003
ACTIVITIES
Inauguration Stocks to be in hand & ready for exhibition Start promotion of our showroom Place orders with the suppliers Interior works begin Purchasing land and building Applying for loans in financial institution. Preparation of business plan Scanning of suppliers through market research Market research of target area Study about ethnic goods.
MANAGEMENT PLAN
THE
STRUCTURE oF tHE MANAGEMENT TEAM
SANSKRITI COLLECTIONS
SUMANGALA SHETTY (Partner) TRUPTI UTCHIL (Partner) SUCHITRA C.R. (Partner)
MANAGER (In Store)
MANAGER (Logistics)
MANAGER (Marketing)
CUSTOMER FACILITATOR
CUSTOMER FACILITATOR
THE FINANCIAL PLAN
PROJECTED CASH FLOW STATEMENT RECEIPTS PARTICULARS Owners Contribution: R s Rs Rs PARTICULAR S Salary 2500000 2500000 2500000 750000 Transport & 0 Distribution 150000 95000 80000 20000 90000 450000 828900 PAYMENTS Rs Rs 504000 Rs
Sumangala Shetty
Trupti Utchil Suchitra C.R.
Advertisemen t
Long term loans Friends & Relatives 300000 0 Conveyance Stationery 150000 Preliminary 0 expenses Interest on Bank @ 15% Insurance
Purchases
37500 00
less: Creditors
less: Returns Freight
18000 00
1950000 50000 1900000 1500000
Tax
General Reserves Short Term investments Fixed Assets Land & building Furniture Office equipments 1000000 0 50000 90000
500000
500000 1500000
1014000 0
Distribution of profits Sumangala Shetty Trupti Utchil
272166
272167
Suchitra C.R.
272167
816500
Cash (transfer to balance sheet)
167150 0
187000 00
187000 00
ESTIMATED BALANCE SHEET AS ON 31ST DECEMBER 2005
LIABILITIES Particulars Owners Contribution Sumangala Shetty Trupti Utchil Suchitra C R
2500000
ASSETS Rs Particulars Fixed assets Land & Building Less: depreciation
7500000 10000000
Rs
Rs
Rs
2500000
1000000
9000000
2500000
General Reserve
500000
Furniture & Fixtures Less: Depreciation
50000
47500
2500
Long term Loans Friends & relatives Current Liabilities Creditors Provision for taxation
3000000
Office Equipments Fax Machine Computer Card swap mac. Less: depreciation Medium term investments Current Assets Inventory Debtors Cash
25000 45000 20000 90000 9000 81000
1500000
1800000
500000
1500000
1000000 1500000 1671500 4171500 14800000
14800000
THE RATIOS
Current Ratio: = Current Assets Current Liabilities = 1.831
Debt Equity Ratio: = Debt Debt + Equity = 0.375 Gross Profit Ratio: = Gross Profit * 100 Sales = 52.72%
THE RATIOS
Net Profit: = Earnings After Interest and Tax Sales = 22.01%
Interest Coverage: = Earnings before Interest and Tax Interest = 5.03%
Return on Investment: = Earnings Before Interest and Tax Investment in assets = 15.31%
BREAK EVEN ANALYSIS
BREAK EVEN ANALYSIS
PARTICULARS Salary Telephone charges Electricity charges Transport & Distribution Advertisement Conveyance Postage & Stationery Preliminary expenses Interest on Bank@15% Freight TOTAL FIXED COST 504000 7200 6000 VARIABLE COST 7800 12000 150000 95000 80000 10000 90000 50000 150000 644800
10000 400000
927200
BREAK EVEN ANALYSIS
BREAK EVEN ANALYSIS (Rs.) = Total fixed cost 1 – total variable cost Sales
BEA (Rs.)
=
927200 1- 644800 8200000
927200 1-0.78
= =
=
927200 0.922 Rs. 1005639.91
TECHNO ECONOMIC FEASIBILITY
TECHNICAL FEASIBILITY • Demand for ethnic goods : Location chosen by us is a prime area. Floating Population: Many rich localities in Ghatkopar and Chembur • Supply of Goods for sale : Three year agreement Other Suppliers in case of any problem Transportation agreement : One year agreement • Purchase Furnished Shop: Purchase of fully Furnished Shop that has connections to all amenities.
TECHNO ECONOMIC FEASIBILITY
ECONOMIC FEASIBILITY
• • • • •
Creation of employment Increase in national Revenue Pollution free business Value addition of the economy Creating market for a product which will enhance the Indian culture
CONCLUSION
“Coming together Is beginning Keeping together Is progress Working together Is Success “
Sanskruti
collections
www.sanskruticollections.com
doc_758163968.pptx