You are on page 1of 24

NATURE CALLING Inc.

BUSINESS PLAN

30th NOV,2008

BRAINSTORMING BY:
Manish Kumar Sahoo
manishkumarsahoo@ymail.com

(For nature
SERVICE ACTIVITIES RELATING
TO RENEWABLE &
BIODEGRADABLE WASTE
(SEPTIC,WATER HARVESTING & BIO GAS PLANT)

Offers financial institutions & other interested parties an


opportunity to review our vision and strategic focus.

Provides a step-by-step plan for the business start-up.

Introduces company, products and services, market focus,


action plans and forecasts, management team, and
financial plan.
TABLE OF CONTENT
• Executive Summary
• Mission
• Key to success
• Company Profile
• Product & services
• Competitive edge
• Market analysis
• Competition
• Strategy & Implementation
• Financial plan
• Projected profit
• Projected cash flows
• Regulatory authorities & certifications
EXECUTIVE SUMMARY
• Governance of the biodegradable
activities.
• Waste management
• Less explored market
• Futuristic capital gains
• Usage of inert power gas
• Wide range of services
• Cost effectiveness & pocket friendly
MISSION
Service company dedicated to converting bio degradable
waste into commercially viable products.

Utilizing environmentally friendly methodologies and


manufacturing methods.

Profit to generate a significant return for our investors.

We will also maintain a friendly, fair, and creative work


environment.
KEY TO SUCCESS

• Secure Supply- Contract for supply of


customised septic/bio-gas & water-harvesting
tanks.

• Marketing - Contractual arrangements for the


sale of virtually all installation in rural India.

• Management - Strong senior management with


extensive, broad-based, industry-specific
experience.
COMPANY PROFILE
• Company already dealing in services related to
agricultural products like fertilizers, pesticides &
manures.

• “Nature calling” has assembled a strong


management team.

• High quality products & services at reasonable


price.
PRODUCTS & SERVICES
• Sizes available for septic / bio-gas /
water harvesting tanks
• 300 Gallon Sphere Single Compartment Tan

• 500 Gallon Sphere Single Compartment Ta

• 1,000 Gallon Pre-Plumbed Single /Double C


DESIGN OF SEPTIC TANK
PRODUCT & SERVICES
(Septic tanks/bio gas tanks/water harvesting tanks)
Low cost disposal of human waste to overcome the health hazards.

Developed after extensive research.

Tank completely eliminates problem of cleaning the tank at intervals.

Not costly if compared with traditional septic tanks.

It does not pollute ground water, hence healthy for environment.

Minimal Maintenance, simple and easy in adoption. Takes very little


space & less consumption of cement and bricks.

Minimal chances of damage during earth quake.


POTENTIAL RISK

• There may not be a readily available market for


the Company's products.
• It may not be able to generate enough market
and curiosity.
• The Company may not be able to sell all of its
production capability.
• Delay in obtaining approvals from concerned
authorities.
COMPETITIVE EDGE
1. The system is simple and virtually maintenance free.

2. Can be installed in almost any situation.

3. The system is cost effective.

4. The system is more efficient.

5. After sale services.


COMPETITION

Competition primarily from the privately owned


small scale unorganized firms in the local areas.

Various N.G.O.s functional in rural areas.

Government health & sanitation department.


MARKET ANALYSIS

PROJECTED GROWTH & PROFIT


Potential
Customers
Growth 2008 2009 2010 2011 2012
URBAN 15% 5,00,000 5,75,000 6,61,25O 7,60,440 8,74,510

RURAL 10% 2,00,000 2,20,000 2,42,000 2,62,200 2,92,820

OTHER 0% 0 0 0 0 0

13.64% 7,00,000 7,95,000 9,03,250 1,026,640 1,167,330


Market Analysis

• The company estimates that about 80% of


revenues will come from the RURAL
SECTOR

• 20% from the towns & URBAN SECTOR

• The table below further estimates the


total market potential of type of services
rendered by “NATURE CALLING”
MARKETING PLAN
Branding [ LINTAS ]
Promotion [ EXISTING DISTRIBUTORS ]
Place
Product
Pricing [ Rs. 8,000-30,000 ]
FINANCIAL PLAN - FUNDING
ANURAG R. Rs 20,00,000
VIKRANT NEGI Rs 20,00,000
KANISHK NARAIN Rs 20,00,000
MEGHANSHI GUPTA Rs 20,00,000
TOTAL RS.80,00,000

Each of the four co-owners will invest rupees 20 lakhs.


The remainder of the required financing will come from a
ten year Small Business Administration (Bank) loan in the
amount of rupees 1 crore and a short-term loan in the
amount of rupees 22 lakhs. Total loss at start-up is 2
lakhs.
FINANCIAL PLAN
Start-up Summary

Start-up Expenses

Legal Rs 1,20,000

Other Rs 80,000

Total Start-up Expenses Rs 2,00,000

Start-up Assets Needed

Cash Balance on Starting Date Rs 40,00,000


Start-up Inventory Rs 20,00,000
Other Current Assets Rs 20,00,000
Total Current Assets Rs 80,00,000

Long-term Assets Rs 1,40,00,000


Total Assets Rs 2,20,00,000
Total Requirements Rs 2,22,00,000
CURRENT LIABILITIES

Accounts Payable Rs 0
Current Borrowing Rs 22,00,000
Other Current Liabilities Rs 0
Current Liabilities Rs 22,00,000
Long-term Liabilities Rs 1,00,00,000
Total Liabilities Rs 1,22,00,000
Loss at Start-up (Rs 2,00,000)
Total Capital Rs 98,00,000
Total Capital and Rs 2,20,00,000
Liabilities
Break-even Analysis

Monthly Units Break-even 6,969

Monthly Revenue Break-even Rs 3,89,68,440

Assumptions

Average Per-Unit Revenue Rs 4156.8

Average Per-Unit Variable Cost Rs 1712.4

Estimated Monthly Fixed Cost Rs 1,70,34,840


Pro Forma Profit and Loss
2008 2009 2010
Sales Rs 37,80,00,000 Rs 45,07,65,000 Rs 53,26,61,600
Direct Costs of Goods Rs 15,72,00,000 Rs 18,56,92,520 Rs 21,93,49,280
Other Rs 0 Rs 0 Rs 0
------------ ------------ ------------
Cost of Goods Sold Rs 15,72,00,000 Rs 18,56,92,520 Rs 21,93,49,280
Gross Margin Rs 22,44,00,000 Rs 26,50,72,520 Rs 31,31,16,880
Gross Margin % 58.81% 58.81% 58.81%
Expenses:
Payroll Rs 17,26,00,000 Rs 18,12,30,680 Rs 19,02,92,880
Sales and Marketing and Rs 10,80,000 Rs 14,33,200 Rs 28,84,880
Other Expenses
Depreciation Rs 48,00,000 Rs 55,20,000 Rs 63,48,000
Utilities Rs 48,000 Rs 50,400 Rs 52,920
Payroll Taxes Rs 2,58,90,000 Rs 2,71,84,600 Rs 2,85,43,920
Other Rs 0 Rs 0 Rs 0
------------ ------------ ------------
Total Operating Expenses Rs 20,44,18,000 Rs 21,54,18,880 Rs 22,81,22,600
Profit Before Interest and Rs 1,99,82,000 Rs 4,96,53,640 Rs 8,49,94,320
Taxes
Interest Expense Rs 10,69,920 Rs 8,98,680 Rs 8,08,680
Taxes Incurred Rs 48,06,280 Rs 1,21,88,760 Rs 2,13,97,200
Net Profit Rs 1,41,05,800 Rs 3,65,66,240 Rs 6,27,88,440
Net Profit/Sales 3.70% 8.11% 11.79%
PROJECTED CASH FLOWS
Pro Forma Cash Flow
2008 2009 2010

Cash Received

Cash from Operations

Cash Sales Rs 38,16,00,000 Rs 45,07,65,000 Rs 53,24,66,160

Cash from Receivables Rs 0 Rs 0 Rs 0

Subtotal Cash from Rs 38,16,00,000 Rs 45,07,65,000 Rs 53,24,66,160


Operations

Additional Cash Received

Sales Tax, VAT Rs 0 Rs 0 Rs 0

New Current Borrowing Rs 0 Rs 0 Rs 0

New Other Liabilities Rs 0 Rs 0 Rs 0


(interest-free)

New Long-term Liabilities Rs 0 Rs 0 Rs 0

Sales of Other Current Rs 0 Rs 0 Rs 0


Assets
Sales of Long-term Assets Rs 0 Rs 0 Rs 0
GOVERNMENT & OTHER
REGULATORY AUTHORITIES.

• COPYRIGHT ACT.
• NATIONAL RESEARCH DEVELOPMENT
CORPORATION OF INDIA.
• POLLUTION CONTROL BOARD.
• INDIAN STATE DEPARTMENT OF
HEALTH.
THANK YOU!!!

TOGETHER WE CAN MAKE IT MORE


GREEN!!!

You might also like