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Front page A synopsis of Business Plan Business: Submitted by

Entrepreneurial strategy . Business selection 3.Business plan 1. Business ideas (Problems based idea generation) Include method you did to collect data 2. Marketing simulation (Include method you did to collect data) 4.

27% Lower 1000 38. Lower segment consumers are very price sensitive as a decrease in price will at least to greater extent increase the sales. 1.Marketing Plan 1.200 1200 18. the price will be decreased by Rs. High 20. In this segment also. 2 to make it Rs.28% Medium 400 19. 2 they will be attracted to our product.3 Summary of estimates (sales target.200 2. It is logical to increase the price by Rs.08. But we will also be serving to medium and lower segment to fulfill demand of some customers.9% Total 22.000 99. 2 to make it Rs.000 35.1 Business objective: We are a new entrant in ice cream business and there are a total of three competitors in the market. 1. Also.308.2 Target segment(s): We will be targeting to all the three segments of the ice cream market as we need to provide variety of products to the market. Being a new business our main focus must be sales maximization for a sustainable market development. The two distribution channels will be added for the convenience of customers and seventeen units of promotion will be done. Among three market segments. revenue. Hence.000 21.12. 70 that is Rs. they see the quality of the product and can travel easily to distant places if they are satisfied with the product.000 1. profit.000 3. For other segments it seems that pursuing sales maximization incurs a huge amount of loss which the company will not be able to withstand at initial stage.463.18% .000 1. 48. because our objective for high segment is sales maximization. cost and market share of each segment) Market Segments Total sales target (Units) Total sales revenue (Rs) Total profit Total cost Marketing budget Market share 1.200 1. For medium segment. Our main focus will be on high segment as we are going to maximize the sales there. Also. for high segment we can pursue sales maximization and medium and lower segment we can use profit maximization objective. we will be doing much promotion in newspapers and high class magazines as well as in hoarding boards. the price will be decreased by Rs. 10 will be added to the market price. the price will be increased to Rs.000 2.900 1. we will not be adding any distribution channel as well as we will not be doing any promotional activities. For lower segment. 10 as the high class people are not that sensitive to the price.520. Medium class consumers are somewhat sensitive to price so that if we decrease Rs.300 1.000 1.4 Marketing strategies: For high segment. 38.255. No distribution channel will be added and no promotion will be carried out as we are simply trying to increase the profit by decreasing the price. the objective of sales maximization only seems to be feasible for high segment without making loss.

2.5 1000 9500 Total Rs. Building will be leased for the ten years at the rate of Rs.4 Labor: Out of six skilled labors five will be hired for handling the machinery and one driver for transferring the raw material and products. Operation Plan (Also include the method you applied to collect data) 2.000 Equipments Furniture Vehicle Total fixed assets 2.000 from the first year.4 Raw materials: The total raw material cost for three product lines were calculated based on percentage of selling prices.000 25. Extraction. 2.4 400 5760 38 25% Low 9. 600460 (Note: You can have weighted average selling price and raw material costs instead of this table. All of the steps will be carried out in this business without any outsourcing and off shoring. 80% and 90% will be used in 1st and 2nd year respectively. per year. Quantity 5 1 Rate 30.000 200. Per unit raw Total units Total RM Segments material required cost 70 40% High 28 20900 585200 48 30% Medium 14. However. Finishing and Packing are the basic production steps respectively.1 Production (operation) process: Cutting of wood.) 2... However. Painting. Five machines with capacity of 4000 units per year will be installed in the first year for to meet target sales of 20.000 Amount 150. The degree of competition is also low with three players in the overall market.1. The total cost for labor is summarized below: Labor used Number Rate/ month Total Selling price % or SP .2 Capacity utilization: Based on promoters’ experience on pencil industry and growth of market size of around 6 % pa. 2.3 Fixed assets The followings are the fixed assets. Lead Insertion.000 50.5 Market Opportunities: Overall this business has a good opportunity in terms of high growth in demand of the product which has been increasing at the rate of about 6% per annum. The overall profitability is also good. Two semi killed workers for packaging will also be hired. this company should pay close attention to competitors especially Y – market leaders in high market segment because our market share is very high.

3. a. Financial Plan: (also include method you used to collect relevant data) 4.4 Administrative expenses: One manager will be hired and other administration expenses along with salary for managers are given below. pre. 48. Administrative expenses Salary Overhead: Electricity Stationary Others Total 3.069.000 2.6 Per unit costs: The total annual factory expense will be Rs. 20.3 Fixed assets: One of the rooms in factory building will be set aside for office.460 and per unit factory cost will be Rs. water and telephone cost which will be in total Rs.operating expenses and working capital: . 1.1 Form of organization: 3. 408. 2.20000 10000 4000 2000 1000 17000 4.5 Overhead expenses: The overhead expenses will consist of electricity. They are depreciated at the rate of 10% which is amounting to Rs. Organizational and Management Plan: (Including method you applied to collect the data) 3.5 Pre-operating expenses Pre-operating expenses Registration Survey and business plan Total Fixed Assets Amount 10000 10000 Rs.000 per year.1 Total capital: The total capital consists of fixed assets that will be used in factory as well as office.Skilled Semi skilled Total per month Total labor cost per year 6 2 8 5000 2000 30000 4000 34000 Rs. 4500 p. Depreciation Total Equipment 20000 Furniture 25000 Total 3.2 Organization structure of management team and their profiles 3.

Fixed assets Plant and Equipment Furniture and fixture Vehicle Total Fixed Assets Amount 170000 50000 50000 Rs.3 Profitability analysis 5.5 Risk returns analysis with sensitivity analysis . administrative expenses and marketing expenses.1 Projected financial statements 5.4 Pricing strategy and final price 5. The work in progress inventory is 2 based on production process. finished products inventory is determined base on distribution system.2 Breakeven analysis 5. 4. 20000 The total working capital is calculated for different days of inventory of materials and credit sales: No. Similarly. Therefore. total capital = fixed assets + pre-operating expenses + working capital which is equal to Rs. 856423 The total cash is equivalent to all monthly expenses for labor. lead time.. factory expenses.2 Financing plan and interest rate 4. Financial Analysis 5. 270000 Pre-operating expenses is Rs. … . The raw material is stored for 10 days considering the transportation.3 Loan repayment schedule 4. The number of days for accounts receivable is set as per normal collection period for this kind of business for the initial years.4 Cash management plan (monthly) 5. of days in inventory 10 2 15 30 Working Capital RM inventory WIP inventory FP inventory Accounts Receivable Cash Total WC Amount 35968 3596 53952 107905 655000 Rs.

6 Overall feasibility .