NOOK CONSTRUCTIONS PVT. LTD.

STRATEGIC BUSINESS PLAN

“We build dreams”

SUBMITTED BY: ANAS ANDHI, CP0112 ARPANA ROY, CP1112, RUPAL SANKHLA, CP1312, VISHUL SAXENA, CP1412 VRUSHANK SHAH, CP2512

STRATEGIC BUSINESS PLAN

For

NOOK CONSTRUCTION PVT. LTD.

For the period of

January 2014 to December 2016

EXECUTIVE SUMMARY
Nook Construction (NC) is an Oregon-based real estate company that will offer benchmarked living units in Jamshedpur. NC‟s units will balance safety, cutting edge features, and a positive atmosphere for all customers. These units will be provided with unmatched levels of customer service and attention. Sales are projected to be substantial in year one growing moderately by year three. The Market NC will target two distinct customer segments. The largest segment that they will service is employees of Industrial area AIADA. The second market segment is ex-employees of TATA The two major functions of the Real Estate and Land Development Department consist of land management and land development. Land management entails acquiring, managing and disposing of the City‟s real estate holdings in support of corporate and community objectives. These functions include:    Ensuring the City‟s land bank is properly managed until such time it is required for urban uses, Ensuring the City‟s properties are utilized for their highest and best uses, and Ensuring all agreements relating to City lands are current and appropriately administered

Land development is a process which transforms raw land owned by the City into serviced, developable parcels. The activity related to this process includes planning, marketing and selling lands for a variety of uses, including, but not limited to residential, industrial, institutional, recreational and commercial. Objectives The following are the main objectives: • To invest in undervalued residential real estate properties for the purpose of renovating or rehabilitation and then immediate resale, or to hold and rent properties, generating monthly income while obtaining market value appreciation over a longer period. • To manage real estate investments from identifying potential properties, to evaluating, to acquisition, and to final sale or disposition. • To manage the renovation or rehabilitation activities of newly acquired residential

properties. • To manage the residential properties that are rented and held for the longer term. • To manage the portfolio of real estate assets.

Keys to Success The keys to success will be: • • • Acquisition of undervalued residential properties. The greater the discount that properties can be purchased, the greater the upside for short term or long term gains will be. Complete the renovation or rehabilitation work within the scheduled time and within the budgeted amount. Recognize buying opportunities on specific properties that would provide the option to immediately resell selected renovated or rehabilitated properties upon completion for short term gain. • • •

Find rental occupants for the selected properties before renovations are completed, or at the first opportunity after completion. Generate cash flow from rental income sufficient to cover debt and expenses and provide funding for new property acquisitions. Maintain an average 92% occupancy rate each year on rental properties. Provide projected overall 5%-6% cash-on-cash return on the portfolio of assets.

SECTION ONE
STRATEGIC FOCUS
The Aim of the Plan Aim is to enter the real estate development business in Jamshedpur and grow geographically in the next 10 years. The purpose of this business plan is to raise ₹900,000 for the development of a real estate development firm that specializes in residential properties while showcasing the expected financials and operations over the next three years. The Nook Construction Pvt. Ltd. (“the Company”) is a Jamshedpur based corporation that will provide real estate development and rental services to customers in its targeted market. Our Vision To be the best, full service real estate Company in Eastern India and to enhance quality of life through active community involvement. Our Mission The mission of Nook Construction is to be the most successful real estate firm in Jamshedpur. It incorporates proven, professional state of the art techniques specializing in the construction, marketing, listing and selling of new and resale luxury homes, residential communities, home sites, undeveloped land and commercial and investment opportunities. Nook construction is a creative, innovative and people oriented organization providing individual opportunity, personal satisfaction and rewarding challenges to all members of the firm. To make the buying and selling of real estate as cost effective as possible while maintaining the highest level of service. To provide accurate and up to date information, skilled analysis and sound real estate advice. To continually explore ideas and technologies, to make the selling and buying of real estate faster, less costly and easier. Core Organisational Competencies Core organisational skills and competencies are vital to achieving our mission and are listed below:   Advanced technology Human capital

Legal Parameters Speculation Adequate Finance Strong Market Research and Analysis Organisational Values Our company prides itself in having very strong organisational culture and values. Hiring the right workers and defining their job description and to form a project development team that includes skilled members to successfully deliver the projects. economic and financial community objectives through efforts in land management. Support to business – industrial. Provide timely. Highest Priority Goals        By 2014 to construct and commission a world-standard production and delivery firm capable of handling 3 to 4 projects costing below 10 crores at a time By 2015. labour and finance. Provide leadership and innovation in meeting land needs of our institutions.     Geographical Advantages. commercial and residential. To increase company‟s market share to gain the competitive edge . recreational users. To promote a profitable and sustainable business activity that meets customer needs. to develop and thrive in our community. social agencies and residents. Respect the expertise and contribution of team members and recognize the value of collaborative effort. Some of which is listed below:        Help meet social. Support internal Business Units to meet their land requirements. accurate information to customers. Assist to protect natural environmental features through the land banking system and the land development process. To establish an extensive outlay of resources both in terms of materials. To establish a strong and sustainable internal structure. to achieve a turnover of 100 crores.

and Excel Infrastructure service standards and specifications OPPORTUNITIES:     Create positive change in the fabric of the community Develop partnerships for economic and/or public benefit Create communities utilizing sustainability principles that include economic. coordination of multiple databases: Tempest. too busy. GIS. environmental and social attributes Streamline processes while adhering to approval requirements THREATS:     Loss of corporate knowledge through staff turnover Downturn of the economy Geotechnical risks Changing regulatory requirements (storm water management) Rapid upturn in the economy (cost escalations. supply/demand)  .SPOT ANALYSIS STRENGTHS:             Internal and external relationships Council support Experienced and knowledgeable staff Customer service Land bank program Ability to influence      Ability to think big Non‐tax supported revenue generator Document management Policies and procedures Attention to detail PROBLEMS: Comprehensive marketing program Complexity of land transactions Complex and cumbersome multi‐departmental road plan and closure process Complex and cumbersome multi‐departmental shallow utility installation process Complex land inventory system.

He is born and brought up in Gujarat and has done his graduation in Civil Engineering from SVIT. She is born and brought up in Jamshedpur and has done her graduation in architecture from BIT. .SECTION TWO CAPITAL INVESTORS Name: Arpana Roy She is the director of the company and holds majority of the shares in the company. She is born and brought up in Udaipur and has done her graduation in Civil Engineering Udaipur. Name: Vrushank Shah He is the Construction head of the company and holds 12% shares in the company. Punjab and has done his graduation in Architecture from NIT. Name: Rupal Sankhla She is the Marketing Head of the company and holds 12% shares in the company. Ranchi. Name: Vishul Saxena He is the Design Head of the company and holds 12% shares in the company. Name: Anas Andhi He is the Administrative head of the company and holds 12% shares in the company. He is born and brought up in Gujarat and has done his graduation in Civil Engineering from Gujarat. Raipur. Gujarat. He is born and brought up in Patiala. Mesra.

Jamshedpur has been selected as one of the cities for the global compact cities pilot programme by United Nations. residential and commercial land opportunities Create revenue to be reinvested into other projects. Jharkhand Reason for selection Jamshedpur. Housing scenario in Jamshedpur Employees of TATA STEEL are provided with houses. „the steel city‟ is a small town in the newly found state of Jharkhand. the only one to be selected in India as well as South Asia. Customer base Retired employees of Tata Steel and other small industry employees which directly employ approximately 30. A major part of the city is run by TATA STEEL itself. Areas owned by the TATA STEEL are governed by JUSCO. price point. Administer land holdings to create opportunities for the orderly assembly of land for effective community planning Demonstrate leadership through innovation in support of the Municipal Development Plan The goals for our land development are:    To achieve a reasonable return on investment measured through earnings and/or value to the community To provide a variety of choices such as density.BUSINESS UNIT OVERVIEW We are in the business to:     Develop land to provide industrial. socially and environmentally responsible) Business segment: Real estate developer in Jamshedpur.000 people. . amenities and locations in the marketplace to consumers To develop communities that are attractive and sustainable (economically.

Nature of the business and it main activities Leveraging our EPC experience • • • • • • • Strong EPC base will give cutting edge to rise above industry standard in terms of execution capabilities Synergies of operating diverse businesses Focus on Green Buildings Try to make all our projects green and get certification from registered authority. Unique Business model focused to lower land acquisition costs Real Estate development through Joint Ventures (JVs) and Joint Development Agreements (JDAs) Partnerships augurs well for local market dynamics Focus on Tier II and Tier III cities Presence across the entire universe of projects Residential and Office Complexes. Ministry of commerce and state government has given up approval for setting up a 90 acres SEZ in Adityapur industrial area. To fill this gap. Shopping malls. IT parks. our company will provide the excellent and cost-effective housing solutions.Real estate Development Locals and tribal are now waking up for the upcoming development in the nearby areas and are trying to improve their living conditions. Hospitality properties and other buildings Competitive strengths Qualified and Proven Project Team and Experienced Management • • • • • • Ability to accurately estimate costs Design. Multiplexes. This will boost the investment and employment opportunities in the area giving rise to housing demand. construct and deliver the project in cost effective and timely manner Diversity of experience gives flexibility to adapt to the needs of customers Differentiated Real Estate Business Model Asset light model using joint development agreements and/or joint ventures Strong business model with mix of development and rental earnings Synergy between Real Estate and Green Buildings Ability to develop turnkey Real Estate projects .

small airports Focus on Real estate related EPC contracts . office partitions. Backward Integration through GMP Acquisition To participate in complete solution engineering in modular clean room. electrical and building management systems Ability to bid for full service contracts Growth Strategies Expanding Geographical Presence • • • • • • • • • • Entry in new geographies with Real estate business RE development once gained significant know-how about the region Expanding business verticals High growth potential in Education. HVAC. Pharmaceuticals and Health-care segments with green aspects Making in-roads in Government projects Mature as a General Contractor Acquiring more of General Contracts and Participate in bidding of full service contracts Increased Mechanization To facilitate reduction in cost and To adhere to project timeline Evaluation of Infrastructure Projects Exploring entry into infrastructure sector in India like bridges.• • • • • • Control on quality and execution timeline Ability to get certification for greeen buildings Emphasis on Innovative Technology for making all type of projects Green Innovative developments to maximize the use of land and minimize use of power and other natural resources Innovative theme-based on Green buildings.

Many real estate developers are holding onto substantial inventories of properties that have depreciated significant. On an annualized basis. Industry Analysis The India Economic Census estimates that there are 21.9 billion while concurrently providing jobs to more than 520. Management is developing a very complex pricing method to ensure that the Company can continue to provide its units at profit despite possible drawbacks in the overall economic market. However. it is hard to characterize any specific tenant that will occupy the Company‟s properties. the industry has recently come under some turmoil has the value of housing and commercial properties has plummeted over the last two years. While this is a prominent issue in the housing market.SECTION THREE MARKET ANALYSIS Economic Outlook The Real Estate Developer will be actively engaged in two primary business units that will seek to generate revenue in any real estate market.300 companies that specialize in the construction of new residential units in India. The Company‟s two prong approach to real estate will allow the business to grow successfully in the rapidly changing real estate market. aggregate payrolls have exceeded ₹20 billion. As stated earlier. the number of real estate sales has increased significantly within the last year. this strategy will allow the Company to offset the risks from each business unit so that there is a diversified balance in the Company‟s real estate portfolio. it presents an excellent opportunity for the Company to develop properties inexpensively so that they can be sold at the current market rate at profit. . This is one of the primary signals of an overvalued real estate market. Recently. In each of the last five years. These strategies include developing residential properties and the rental of completed properties. Customer Profile As the Company intends to operate among several different investment and operating units. During the boom time for real estate over the last five years. This is especially important as the business uses leverage to finance the acquisition of its properties. many people overextended and over leveraged their properties with floating interest only loans. However. More importantly.000 people. these companies generate fees of ₹43. the Bureau of Economic Analysis estimates that homes on the market have increased more than 13% over last year‟s figures.

They will be attracted to the units because of the same technological needs.371 7.00% 5. Local Skilled and unskilled employees are another large segment.43% 40.979 13. These segments are also easily reached through local newspapers and publications.00% 3. These people will be the most likely to desire the more technological amenities that our company offers. This will be the focal point of all our marketing and advertising efforts.00% 4.000 6.866 49. Local Employees (Administrative) and staff represent the third and smallest identifiable segment.615 4.498 14. Nook Constructions largest market segment in the Jamshedpur city will be industrial people of the local industries.946 4.000 4.120 6.446 46. Proximity and quality will entice this segment which we expect to grow at a rate of 5%. Nook offers units that provide a quality "hub" between industry and home ownership.480 12. Market Analysis Year 1 Year 2 Year 3 Year 4 Year 5 Potential Customers Industrial People from Outside Local Skilled and Unskilled People Local Employees (Administrative) Other Total Growth 2008 2009 2010 2011 2012 CAGR 7.051 23.428 Target Market Segment We believe that our unparalleled level of quality and technological amenities put Nook into a niche of its own. We expect this segment to grow at a rate of about 4% with a more frequent turn over.300 4. as well frequent open house displays.244 6.000 19. 2. Competitive Analysis Since real estate is effectually one of the most free market oriented businesses in the country. Market Segmentation 1.038 5% 3% 6.260 20.43% 7% 18.00% 5. . but contain the second highest growth rate.595 4% 12. We expect this to be the largest growing segment with a good growth rate of 7%. but will also be attracted to the comfortable. The Company anticipates that there will be a sizable amount of competition from both single owner investment firms to large construction companies that are seeking to gain from the real estate prices throughout the target market.000 42.293 4. 3. well maintained living environment with low prices in such industrial city.160 44.000 12.502 5. competition cannot be accurately categorized.608 22.Management will enact strict tenant quality and credit review procedures to ensure the Company‟s revenues will not be interrupted by tenant default.

Market Trends This industry is constantly evolving and leaving many inflexible companies stagnant. The general employees segment needs a quiet safe atmosphere that fosters a quality learning environment. They need to feel separation from the noise and unkept conditions of most near-campus housing. The Higher Post Managers segment also has similar needs. Market Needs Each of our targets need the quality. safety. One of the major trends is the need to adapt to technological advancements as well as maintaining the overall appearance and condition of the complexes. so they need housing that will let them feel like they are getting the quality that they need. dirty inconvenience of average apartment living. comfort and technological amenities that can only be found at our living complexes.It is essential for NOOK patrons to understand that their needs are our priority. 3. 2. convenience. Along with the students. they also need a place to feel safe and one that fosters convenience. Another important trend is adapting to higher density housing in smaller areas due to urban growth boundaries. The Administrative professional segment needs a living environment that separates them from the noisy. etc. . NOOK is dedicated to trends while maintaining the level of comfortable livability that sets us apart from our competitors. 1. They also need the convenience of location and on-site amenities. Most professionals are on their way to home ownership or movement to a larger city. service.

Developer of Residential Real Estate The Real Estate Developer will primarily engage the business of developing residential properties with the intent to sell or rent the property once the project is completed.SECTION FOUR PRODUCTS & SERVICES The primary revenue center for the business is acquiring land with the intent to develop new residential units with the intent to resell. Management is developing a complex economic pricing strategy that will determine the fair market rate of a property based on its capitalization rate in conjunction with the market values of residential property. Rental of Completed Properties The direct finance and purchase of residential property is the secondary business of Real Estate Developer. Below is a description of the real estate services offered by Nook Construction Pvt. If the real estate market does not provide a fair and reasonable market value for the property. Once the property is competed the business will then seek to divest the property or rent the units in order to generate income to satisfy the debt obligations of the business. the Company can quickly divest these assets to a real estate investor for a significant profit. After the development process is complete. Residential real estate is the least risky form of real estate investing because the service offered is a necessity. Ltd. There are several considerations that the Company must deal with before purchasing land for development purposes. then Management will aggressively rent the units until such time when the building can be divested at a fair market value. Immediate wealth is created from the moment that the property is complete. The primary focus of the Company‟s marketing strategies will be the sale of properties. . Residential real estate will provide a continuous stream of rental income that the Management will use for reinvestment and profit stability for the Company. This is a strategy that is popular in any economic climate as profits come from the sale of the property after it is completed. but the business may rent its completed units in the event that the property does not sell within 90 days of placing the property on the market. or rent the properties to the general public.

    .1. hall. The roads are lighted by 70 watts Metal Halide Lamps and 125/250 watts Mercury Vapour Lamps 3.000 to 2. bathroom and toilet will be provided in the house. Nearly 10.Products 1.1. Work Desk and Chair Built-in wardrobes. Minimum carpet area and maximum carpet area of the houses for the people belonging to LIG will be of 31 sq. Single bed. Urban Development Authorities and Area Development Authorities will construct houses on the housing land available to them.00. Facilities like one bedroom. Low Cost Housing for unskilled local employees (1/2 BHK)   Provision of Rs. FSI of up to 3. No separate kitchen area will be provided. The state government will provide an assistance of Rs.50.000 will be able to get benefit of this scheme.100 Crore for this scheme in the budget of 2013-14.0 will be given on the land for such housing schemes. 3 diesel generator sets with a total capacity of 437. verandah and service area with attached bathroom.5 kVA caters to the emergency electricity needs. Municipalities. Small size flats for skilled employees from outside (Bedroom With Service room)         Such kind of flats are consists of 1 bedroom.000 beneficiaries will be benefited under this scheme. Houses for LIG will be built on the lands available with Gujarat Housing Board while Municipal Corporations.000 for each beneficiary under the housing scheme for LIG. Small size flats for unskilled employees from outside (Bedroom With Service room) 2. kitchen. Families having annual income of Rs.00.meter respectively. book cup-boards Hot water for inmates Phone facilities House-keeping services for the rooms well supplied with electricity by one 500 kVA and another 300 kVA transformers.meter and 50 sq.

Luxurious apartments with amenities (2/3 BHK)          Clear Title. Choice of Semi-deluxe & Deluxe flats Housing loans available Pollution free environment Eco-friendly development . underground drainage and electricity to the beneficiaries. ft. with a view to check housing quality.7. 345 flats spread over 6 acres of land 2 & 3 bedroom flats of 1. & 1. Maximum price of the house will be Rs. Amenities 8.    4. if necessary and as per the rules. We will provide basic facilities like drinking water. TPI (Third Party Inspection) will be carried out. Apartments for skilled local employees (1/2 BHK) 5.665 sft.50 lakh to Rs.000 sq.00 lakh. Club House with o o o o       Banquet hall cum TV Room Recreation Room with Pool and TT table Library Fully Equipped Gym Swimming pool Children's park Landscaped gardens Tennis court Open-air Badminton courts Basketball court .60% open area Possession from February 2015 onwards.100 sft. Design as per vaastu. We will give advertisement in the newspapers and finally select the beneficiaries in a transparent manner by conducting a computer draw of received applications.11. Beneficiaries will be given priority as per the government‟s current policy.

      8 passenger Automatic Lifts Backup generator for lifts & common lighting 1 KVA generator backup for each flat CC roads and street lighting 24 Hrs security with CC TV Intercom in all flats & security room .

The aspect of our living developments that differentiate Nook Construction from all other real estate companies is our focus on maintaining the most advanced technological innovations on the market for our tenants. Mr. Marketing Objectives   Establish relationships with other real estate brokers and agents within the targeted market. The Company will also use an internet based strategy.  Develop an online presence by acquiring accounts for major online real estate portals. and word of mouth. Marketing Strategies Property and home buyer marketing will be the most difficult portion of the marketing strategy.SECTION FIVE MARKETING PLAN Marketing in a highly competitive housing industry depends on the recognition of excellence. We will develop and provide a living environment of unmatched proportion. Doe will register the Real Estate Developer and its properties with these online portals so that potential buyers/renters can easily reach the Company. Our commitment to quality and comfort includes safety and 24-hour customer service. local newspaper advertisements. Nook Construction will build a reputation upon these components. . This is very important as many people seeking real estate for purchase or rent use the Internet to conduct their preliminary searches. Implement a local campaign with the Company‟s targeted market via the use of flyers. This task will be accomplished through the business‟s broad marketing campaign throughout its targeted market. The Company will also develop its own online website. It starts with the commitment to customer satisfaction and fulfilling their demands. as well as a point of difference to display our units in an individualized light. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the homes and properties that the Company is selling. Below is an overview of the marketing strategies and objectives of our company. We intend to maintain an extensive marketing campaign that will ensure maximum visibility for the completed units in its targeted market.

Promotion Strategy Our most successful promotion will come in the form of word of mouth. We will have an updated Web site for anyone interested in the properties. However. and a website that handles all complaints instantly. Distribution Strategy We will focus on providing high-quality living in convenient locations with a wide customer base. We can only do this by organizing and implementing a sound plan that will assume responsibility for the functionality and appearance of our properties. The only way to truly know the quality of our units is through experience. Since we will own real estate. live answering service. It will also give the appearance of increased demand. Another incentive that we will use is the early move-in bonus program. NC‟s pricing will be at the top of what the market will bear. Rental income is to be determined based on market conditions. only Nook construction real estate properties will be able to fulfill their needs and desires at an affordable price. Anyone that signs their lease before June 15th will receive a free month as well as two parking spaces.Pricing Expected margins from sales will reach 60%. word will spread through the community about our unique appeal. we will be highly visible to the public. Marketing Programs Our most important marketing program is customer word of mouth. with 24-hour on-staff service. It is also important that we remain at the upper echelon in the quality range when compared to competitors. . Since our complexes will be in the upper echelon of quality and livability. Unlike most other property management companies. We confidently believe that the high level of quality that we will provide can attract a strong demand for our units. Rewards will be given to clients or customers that refer new clientele to the company. Our prices will be competitive with the larger firms while maintaining the high level of quality and expert management. we must try to follow market pricing trends in order to maintain a competitive advantage. we are committed to guaranteeing customers full satisfaction. Positioning Statement For people who desire high-quality living with all the technological amenities available. This will encourage people to try and beat the rush of people who move in later. hence we must maintain the highest level of customer satisfaction.

We will also be personally promoting our product within the community. Nook hopes to build a reputation as the real estate company for first-time home buyers. and worry-free both during the home buying process and even after their closings. Nook hopes to make home ownership. effectively eliminating competition within their market. offering them such great service that all of their fears associated with the process will disappear. Goals Nook will pursue the following specific goals:  Hire an additional agent before workload cuts into time necessary for marketing and company direction  20 invitations to area speaking engagements in 2014 in Industrial Projects Strategic Goals   Be ranked in the top 1 real estate agencies for first-time home buyers in local area. We must be in touch with the needs and desires of our clientele in order to best attract a consistent flow of incoming residents. and psychological value . The Time of India.Along with word of mouth. happy. By doing this. Achieve 100% customer satisfaction Purpose Nook seeks to make the process of buying a first home a relief for clients. emotional. and the financial. The Telegraph and The Hindustan times. Through this. Sales Strategy Sales in our business is based upon providing customers with a living concept fitting of their needs. Marketing Marketing Vision Nook seeks to make first-time home buyers comfortable. specifically. our most consistent form of promotion will come from ads in local publications. This marketing plan details the current and new marketing programs and practices of Nook which will lead to establishing and consolidating this reputation. as well as smaller magazines and circulations.

 Power Grid Crop.  Dipali Enterprises  Hindustan Petrolium Corp. the ideas and process of how customers are treated at Nook will be shared with similarly-minded real estate agents in other towns and states so that the reach of the company's impact goes well beyond its locale. Ltd. India Pvt. Ideally.that comes with it.  Indian Oil Corp Ltd. Of India  TATA Rolls Ltd  CAPARO Engg.  JMT Auto Ltd  Large boarding near industrial area and roads as well as highways  Adityapur Kandra Main Road  Jamshedpur to Barbil  Jamshedpur to Govindpur  NH 32  Advertisement in Local News Papers and Internet  Dainik Jagran -Jameshedpur  Dainik Bhaskar . Ltd.  Free brochures and different seminars (with free lunch) to industrial working people as per their requirements  JUSCO Power Substation  JOST India Auto Components Pvt.Adityapur  The Telegraph  Times of India  Nook will provide easy EMI and installations with availability of low interest home loans.Jamshedpur  Prabhat Khabar . happen for as many people as possible. . Ltd.

. being implemented on time. All this create difficulties for developer and in such a situation objective judgment becomes a casualty. For example town planning scheme and other such scheme which will affect our land possession. To fill this gap. profitable. type of use i. getting the license and approvals for construction and marketing the project to the targeted client.SECTION SIX RESEARCH AND DEVELOPMENT Our company mainly deals with real estate and construction business in which the process is very slow due to lot of paper work and clearance.e if the portion of land is purchased for building commercial building but in the new scheme that portion is declared residential or agricultural. For example Ministry of commerce and state government has given up approval for setting up 90 acres SEZ in Adityapur industrial area. contingent liability on account of delays and defaults etc. Total assets can comprise of all kind of land development agreements. . mobilizing resources. at the corporate level cash flow of the development company is the net aggregate cash flow from all its projects as adjusted for the corporate expenses and interest payments. even liability for subvention payments on certain home loans. Companies are also not required to disclose project wise cash flows and whether and to what extents fund have been diverted to other projects or activities like land acquisition. Moreover Locals and tribal in Jamshedpur are now waking up for the upcoming development in the nearby areas and are trying to improve their living conditions. It is very difficult in such circumstances to make a clear picture about the future growth of a real estate development company. Due to this the money is blocked in the project for long time so proper planning for financial part is crucial. For this thorough market research is to be done on the development pattern of the city. We cannot know whether a project is delayed. receivables. So all this risk factors should be analysed and studied thoroughly Lack of Transparency in Real Estate Development is essentially an activity which consists of aggregating land and the respective project. The numbers do not tell us the impact of cost over runs. our company will provide the excellent and cost-effective housing solutions. unprofitable etc. So what more schemes of government or private companies are coming in the area where our company‟s capital is invested. Profitability of a real estate developer combines profitability of all its projects.

Research areas  Housing Markets & Finance: The dynamics of supply and demand that create the U. Considering all critical factors mentioned above . Demographic trends. So an effective team is to be appointed for carrying out research on above topics and for formulating successful strategy for land acquisition. Determinants of property taxation and expenditure in local public school districts. financial.  Real Estate Finance/Securitization:Financial products used to finance real property. The economics and role of government in financing real estate development. the impact of teachers on student achievement.  Real Estate Development/Land Use Policy:Real estate development process and practical applications of design. development. development etc. and measuring the effectiveness of educational policies such as charter schools and school accountability systems. mortgage finance process. and strategy. Economic.  Real Estate Investment Strategy: The variety of forms of value creation in global real estate. Issues such as demand for workforce housing and the expansion of midsized communities.  Demographics: Exploring demographic trends and the impact of such trends on real estate markets.S.  Social Enterprise and Policy: The economics of education.  Real Estate Public Development Finance & Urban Development Politics: The role of local actors in real estate development. investment management. housing markets. construction. and secondary mortgage market. housing construction and costs. Strategies and structures of financial products. institutional dynamics that constrain actors and organizations in the real estate business. and finance in developing real estate.

Good project managers can oversee a project through to completion. we serve as a natural extension of customers. Transaction Management. priorities and speed to market. saving the precious resources of time and money. Making most of the market opportunities. but producing superior results requires a firm grasp of business goals. they are an integral part of your plans and priorities for the future. full-service partner that is committed to their long-term investment. Our project management experts offer unmatched strategic perspective and hands-on problem solving to add value and mitigate risk at each significant point of the process. Working with our company gives investors the benefit of having a world-class. using our experience and proven methodologies to complement customer‟s own strengths and capabilities. Our company oversees the management and tracking of the entire project from site selection to final closeout. It‟s how well we understand the full range of our investor and customer business requirements – from your financial goals to their asset‟s distinctive . Portfolio Administration. Our proven ability to reduce costs and mitigate risks enhances the value of real estate. Facilities Management. Smart positioning and marketing to attract and retain tenants. That‟s why what is important for us that not just how well we know Property Management. Your assets. supporting and enabling the achievement of customers objectives. Our qualified professionals take care of marketing our property and achieving the most competitive rates while maintaining occupancy.SECTION SEVEN PRODUCTION AND DELIVERY We are focusing on real estate so we can focus on business. Our Services capability integrates various real estate disciplines. We negotiate tenant work letters or owner contracts to ensure timeliness and clearly communicate your company standards to all parties. and Project Management into tailored solutions meeting the exact needs of our clients. The professionals at our company serve as customer‟s advocate. your way. We create streamlined project schedules. such as Advisory Services. Delivered through a dedicated account team. Your real estate assets are more than addresses on a map.

from reporting needs to decision-making processes. we measure the worth of our Property Management business not by the value of assets under our care. They all will take care of their respective department and submit their DPR to project planner daily.characteristics. . but by the value of our relationships with owners and investors like you. electrical department. Financial Advisory We also have a financial advisory team which give advices to our investors and customers the present market and financial plan so that they can make their decision faster and feel safe about their investment. Delivery Delivery for the land purchase transaction will be according to the convenient and sale deed and that of the constructed project i. billing and account department and execution team. at 1st floor 15%. at 2nd floor 10% etc. safety department. We will also have a weekly meeting to resolve the problems if any.e residential or commercial time will be given of the project duration and release of fund from the clients or customer or investor will be according to the stages of construction.e project planning department. quality department. for example at plinth 15%. Execution For the execution part we have formed six separate department i.

and negotiates lease terms. and market-tested solutions. we manage the payment of rent. When properly aligned with corporate objectives. Some of our employees are also experienced negotiating tax abatements and other local incentives to reduce occupancy costs. our leasing team is expected to perform 50 site searches and executes nearly 30 leases each year. Leasing Our leasing group performs site searches. Our aim is to be world's largest supply chain management company and experts in understanding the operational factors that influence real estate decisions. we offer build-to-suit development services. common area maintenance (CAM). Our real estate team also offers lease mitigation services for customers with existing leases.SECTION EIGHT SUPPPLY CHAIN Real estate plays a vital role in overall supply chain strategy. we have assembled a network of local brokers with extensive knowledge in each market. On average. on budget and to user specifications. and can represent the tenant in any landlord disputes. We perform about 65 CAM reconciliations and 60 tax appeals each year. and insurance. advises on facility selection. coupled with our vested interest in delivering facilities on time. improved efficiency. taxes. as nearly every warehousing or distribution center decision features a real estate component. To present the best options to our customers. a well-executed real estate strategy can make significant contributions toward achieving operational and financial budgets. We also oversee and execute operating expense reconciliations. minimized risks. turn-back negotiations. Development & Construction For customers with unique needs. . Our company‟s real estate and logistics service is to offer a single-sourced comprehensive solution. reduce real estate risks. This network ensures customers acquire the facility that best meets location and financial requirements. tax appeals. We want to build our experience in developing large area. Customers benefit from reduced end-to-end supply chain costs. We work closely with landlords to develop creative solutions to reduce or eliminate lease exposure Lease Administration Once the lease has been executed.

all while acting as the customer's advocate. which allow customers to reduce start-up and operational risks by leveraging resources. issues We use a market test to ensure that the optimal customer solution is presented each and every time . optimal real estate solution because we understand the operational implications of delivery delays and other sub-optimal solutions    Integrating real estate and logistics decisions reduces end-to-end supply chain cost and improves efficiency Handing off real estate execution to us allows customers to focus on strategic. and manage the disposal process. rather than tactical. How our real estate assets and expertise are different from competitors   Procuring integrated real estate and logistics solutions from one provider reduces the number of touch points and solution complexity It will help the company to be vested in the delivery of an on-time. advise on monetization strategies.We are also planning to invest in campus developments in key logistics markets. We maintain several institutional relationships allowing for both private and public market transactions. and knowledge within a campus environment. talent. we offer capital markets consulting to review the asset or portfolio. Capital Markets For customers who have a need to dispose of owned assets.

0% re-work 100% delivery on time 100% completion within budget QUALITY ASSURANCE PLAN . Quality and safety objectives are defined within the respective policies and operations procedures forming part of this Project Quality Management System.SECTION NINE BUSINESS SYSTEMS AND PROCESSES a) QUALITY MANAGEMENT QUALITY POLICY (POLICY STATEMENT) within the time schedules at the lowest cost to our Customers including providing safe work environments. ng ensures that change is conducted in a controlled manner and that the Integrity of the Project Management System is maintained during this change. 100% conformance to customer specification and expectations. ality of products and services including the development of employees at all levels. Quality Objectives are as follows:      100% compliance with applicable safety and environmental standards. PROJECT QUALITY MANAGEMENT SYSTEM (PQMS) management objective. QUALITY OBJECTIVES PMC has established Quality Objectives and levels of assurance that are measurable and consistent with Organization policy.

Improving Customer satisfaction. Assurance Plans. impact ) . ss is reviewed in MIS reports. Field Quality Assurance Plans 2. b) RISK MANAGEMENT Risk can be defined as a measure of the probability. severity and the exposure to all hazards for an activity. 1. recommendations for improvement includes Safety. Best practices for implementation. For an infrastructure project there is always a chance that things would not turn out exactly as planned.The objective of the QAP is to establish a procedure to plan. monitor and achieve Quality Management System planning in order to fulfill customer requirements. statutory requirements and organization objectives based on contractual requirement. quality Management system processes to achieve the planned results of the product & to verify that the requirements have been met as per contract. changes that could affect the Project Quality Management System Improvement of Product Quality. process performance and product conformance . Management Review At Site iew Inputs: Results of audits including safety. Risk = f ( likelihood . follow-up actions from earlier management reviews. status of preventive and corrective action includes Safety. Thus project risk pertains to the probability of uncertainties of the technical. customer feedback . Quality Assurance Plans for Incoming Materials There are two types of Quality QUALITY MONITORING PROCEDURE Management Review (General) System is suitable and effective in satisfying the requirements of the PMC quality environmental and Safety objectives. schedule and cost outcomes.

Risk Management can be defined as identification. warehouse. This is a management tool/technique which aims at identifying sources of risk and uncertainty. The uncertainties in the construction process increase exponentially with increasing complexity & competitions. Three Major Aspects of Project Risk Management 1.Construction is a high risk industry. External Risks : external factors affecting the project Internal Risks • • Technical. Risk Response Planning and Mitigation Measures Sources of Risk High risks in projects typically stem from • • • • Using an unusual approach Attempting to develop and use new technologies Training for new tasks Developing and testing of new equipments Project Risks can be categorized into: 1. Design and Execution Risks Market Risks (risk of not fulfilling either market needs or requirements of particular customers) External Risks • • • Government Regulations Interest Rates Competitors Action . Time. Cost & Quality achievement of advanced projects depends on how effectively risks are managed during its process. measurement and economic control of risks that threaten the assets and earning of a construction business or any enterprise. determining their impact and developing appropriate response. It identifies the various risk factors and sources of risk and tries to control them before the failure or damage occurs. Risk Identification 2. industrial or any specialized such as bridge. commercial. Risk Assessment 3. Internal Risks : originate from within the project 2. Risk and uncertainty are inherent in construction projects whether it is building. water retaining structure etc.

v. fire etc. Risk Contingency Planning 5. iv. xv. Transfer of risk 2. Delay in Approval of Detailed Project Report (DPR) Land Acquisition risks Design Risks Technology Selection Risks Approval and Permit Risks Joint Venture Risks Financial and Investment Risks Political Risks Environment Related Risks Geo-technical Risks Major / Minor Accidents during Execution Unforeseen Heavy Rains Force Majeure Risks like Flood. agitations) Market Conditions Scarcity of Resources Force Majeure Risks ( earthquake. Reduce Risk 4. xi. xvii. Accept Risk 6. iii. x. vi. xiv. flood. Labor Agitation and Strikes Inflation Risk Delayed Payment from Client Delayed Payment to Subcontractor RISK RESPONSE PLANNING AND MITIGATION MEASURES 1. ii. xii. ix.) COMMON PROJECT RISK SOURCES i. Insurance as Risk Mitigation Tool . vii.• • • • • • • Customer Needs and Behaviour Supplier Relations Adverse Weather Conditions Problems in Labour Availability (strikes. viii. Fire. Earthquake etc. xvi. Avoid risk 3. xiii.

The Planning engineer will check the demand with the help of the previous consumption reports (pour card. This report will be made by the contractor & is send to the client the very next day for signing and for client‟s record. precast works. has all minor progress details of the approach works. erection works & cast in situ works. bbs. Majorly weekly progress report will contain details of planned works for that week. etc. Following will be the contents of this report: .  Monthly reports The report will be submitted to the HO in the very first week of the month. consumption and issue reports Requirement of material as given by the Sr.) and also with the target chart to deal with the quantities required for that particular stretch of time.  Material procurement.  Weekly reports A weekly progress report will be send to the HO from the site office on every Monday.c) PROJECT MANAGEMENT INFORMATION SYSTEM (PMIS) PROGRESS REPORTS  Daily Progress report This report. which will be made daily. Site engineer on different parts of the project. Contractor will also make a weekly report in more or less similar format and sends it to client for his records.

it produces a point-based rating system. pollution (air and water). energy use. health and well-being. LEED provides a framework for assessing building performance and meeting sustainability goals and like BREEAM. India. UAE. Italy and Spain. Brazil. it provides a recognised standard for the construction industry to assess the environmental sustainability of building designs. China. land use. just over 1. with the overall aim of reducing a building's environmental impact. LEED has been used to certify buildings in USA. Canada. ecology.d) ENVIRONMENTAL ASSESSMENT METHODS: BREEAM AND LEED  BREEAM . . It sets the standards for best practice in sustainable development and provides a recognised level of achievement.500 paying members bringing in over $24 million a year. LEED promotes integrated whole-building design.000 projects registered for assessment.Leadership in Energy and Environmental Design The LEED green building rating system was originally developed by the US Green Building Council (USGBC).Building Research Establishment Environmental Assessment Method BREEAM is the world‟s longest established and most widely used environmental assessment method for buildings. BREEAM is an assessment tool developed in the UK that rates the performance of buildings based on their environmental impact or measures taken to avoid such impacts. since it was formed in 1995. and materials. Largely based on BREEAM. The USGBC has attracted over 6. Mexico. The two most commonly-used assessment tools at the design stage are BREEAM (Building Research Establishment Environmental Assessment Method) and LEED (Leadership in Energy and Environmental Design).  LEED . A building is rated on management. water consumption and efficiency. Argentina. transport.000 buildings have obtained LEED accreditation with about 9. Despite this.

This builds on and enhances prior research that investigates IT use in the industry. e) PERFORMANCE IMPROVEMENT ACROSS THE BUSINESS. and profit. . EMR. customer satisfaction.Both headings actually cover a range of schemes for assessing environmental impact. cost performance. with specific variations applying either to different building types or to different stages in the construction and occupation of a building. TO INCLUDE PERFORMANCE INDICATORS AND TARGETS         Firm performance measures used in this study are composite scores of several metrics of performance: schedule performance. as well as makes a case for generalizing the IT research for specific technologies that suggest IT use is positively correlated with cost and schedule performance on projects.

” Organisations are dependent on their Stakeholders for their success and their failure. A stake – by definition – may be: In an organizational crisis. xii. vii. x. xv. Investors/shareholders Employees Contractors Financial institutions Customers Buyers and suppliers government departments community client executives end users alliances/partners competitors regulators local communities/pressure groups the media ix.SECTION TEN STAKEHOLDER RELATIONSHIPS AND ALLIANCES A Stakeholder in an organisation is any group or individual who can affect or is affected by the achievement of the organisation‟s objectives. iv. According to the current situation key stakeholders that currently contribute to business performance are: i. xiii. xi. Stakeholders‟ needs and demands have to be balanced and prioritized wherever applicable. vi. viii. ii. xiv. typically multiple stakeholder groups are affected and involved – to a varying extent. iii. v. Professional crisis management and crisis communication may help creating support for and trust in companies by the complete range of its stakeholders. .

PMs need to be challenged and supported to understand and “work with” stakeholders perspectives 7. The PM must be aware of what makes the difference to stakeholder confidence 5.Common causes of project failure: • Insufficient senior management/political/end user support • Too much focus on outputs. Managing the different/ opposing Stakeholder views on the same project is complex 4. Need to adopt a broader view of project success criteria . PMs are challenged to lead. Supporting PMs in focusing on customer understanding and empathy is vital 6. not enough on outcomes • Bad communication between relevant parties • Difficulty overcoming resistance to change  Unclear and lack of consensus on objectives Key insights 1. not just manage Project success Criteria 1 Quality of Deliverables & Service 2 Delivery Performance 3 Benefit Realisation 4 Attitude and Behaviour of People 5 Competence of People 6 Responsiveness 7 Ease of Doing Business 8 Innovation and Creativity .a new model 2. Prioritisation gaps between Stakeholders and Project Managers must be understood and managed 3.

Overall Picture of Improvement Priorities: .

S/BILLING BILLING .SECTION 11 ORGANISATION AND MANAGEMENT MARKETING (RUPAL SANKHALA) FINANCE (SANDEEP BHATACHARAYA) IDEAL ORGANIZATION CHART FOR NOOK CONSTRUCTIONS MD ARCHITECT/DESIGN VISHUL SAXENA PLANNING SUMIT AGRAWAL DIRECTOR /CEO/COO ARPANA ROY PURCHASE PROJECT BILLING SURVEYOR MEP CONSTRUCTION HEAD VRUSHANK SHAH AND ANAS FUTURE PROJECTS SECURITY Organisation SAFETY structure AUDIT SYSTEM QUALITY Q.

we need a strong finance manager to guard cash flow. the two top partners will assess the results of these tasks. The main departments are finance. marketing.MANAGEMENT The initial management team depends on the founders themselves. Management Team NC is completely departmentalized. management. Every six months. The company will make all decisions in accordance with the company mission. As we continue to grow. but they have the sense to listen to reason and deal with constraints if the finance manager provides the proper information. and research and development. with back-up assistance from the property management department. we will establish satellite offices in all of our living developments. Employees are delegated tasks based upon their specialty. Regarding administration. NC will turn to Dynamic Public Relations to help create business development programs. . It will also be necessary to take on additional help in the marketing and R & D sectors as growth continues. such as speaking opportunities and magazine article insertions. to determine promotion and/or salary issues. Our partners are not accustomed to the worries of cash flow. Most of the partners have been working in business environments where this kind of support was provided to them as part of a larger organization. as well as forums and seminars that are important to our ongoing development. Management Team Gaps The present team requires business development and administrative support. and the personality of the employee involved.

SECTION 12 ENVIRONMENTAL AND SOCIAL IMPACT ENVIRONMENTAL SCAN MARKET TRENDS:      Change in interest rates Cost of development Variety of housing options – market demand Variety of land options Corporate land requirements POLITICAL FACTORS:     Change in Political party every 5 years Government supports the provision of industrial land Municipal Development Plan Public scrutiny of land transactions ECONOMIC CLIMATE:    City continues to have stable growth Interest rates. Oil prices CUSTOMER NEEDS:   Information Fair and equitable timely opportunities .

Market Risk could be viewed as issues related to housing market in general or specific to the Frederick region. Late rental payments. Ltd. The necessary time frame to acquire properties is greater than estimated and cannot be performed as a part time job. and Market Risks. Vacancy periods are greater than projected. as such does not meet its projected returns and or obligations. Property Investment Risk could be viewed as the issues related to the acquisition assumptions and projected returns. Property Investment Risk. NC does not properly manage the portfolio of properties and. These risks may include: . The necessary time frame to manage the rental properties is greater than anticipated and cannot be performed as a part time job. Tenant vacates property early. Business Risk could be viewed as the issues associated with the assumptions made for Nook Construction Pvt. Lease transactions are greater than projected. These may include the following: • • • • • The principals do not have sufficient equity to fund property purchases for NC. Unexpected capital improvements.SECTION 13 RISK FACTORS AND REGULATORY COMPLIANCE Risk Identification and management The various risks associated with this business plan can be grouped into three categories: Business Risk. Rental rates are less than projected. These risks may include the following: • • • • • • • • • Property acquisitions cannot be made as projected. Operating expenses are greater than projected. Renovations/improvements costs are greater than projected. Estimated start-up costs are greater than what is projected.

however.5%. Competitors: Akruti Developers are the only developers in Adityapur. Government policy initiatives that enhances opportunity for homeownership and lure away would-be renters.• • • Interest rates increase. There is also a bridge between Kadma and Adityapur that provides a shortcut to NH 33 via Marine Drive. Adityapur has an average literacy rate of 68%. Males constitute 54% Females 46%. Land Availability Company owned 3 Acres of area in Proper Adityapur. Supply of rental housing increases. Housing Demand 6000 Medium and Small House Units are needed in coming 3 years. and is connected with the well-known city of Jamshedpur (famous for Tata Steel) via a toll bridge through Kadma and Kharkai Bridge through Bistupur over the river. with 60% of the males and 40% of females literate. higher than the national average of 59.628. Geographic Kharkai River surrounds Adityapur on three sides (except the west). Transportation Services Adityapur has its own railway station and a four-lane highway (Adityapur-Kandra Main Road) that connects Jamshedpur to Barbil via Seraikela. The risks identified could affect NC‟s performance or ability to meet its financial obligations or targeted return. thereby making financing cost greater than projected and either reducing cash flow or making deals unobtainable. Chaibasa. Fourteen percent of the population is under 6 years of age. that the long-term benefits of real estate investment combined with the principals‟ expertise reduce these risks and will produce the projected returns and meet the obligations of Nook Construction Demographics According to the Indian census Adityapur has • • • • • Population of 225. Uncertainty . which could lead to lower rents. As per the AIADA Report in March 2013.

1 Acre of Area has required to get Non Agricultural Construction Permission. 3186.76 acres Plots 1365. mile. 83 gm. Sheds 142 7 1 Industrial Industrial phases Estate Total developed work area 1 medium near Industrial Estate medium-scale large-scale area.  In which. Company has not been approved by JUSCO and AIADA yet (In Process) Political Risk Regulatory Details AIADA Control Area Held land area for the purpose of establishing industries and allied objectives Total developed land 33.90 acres acres (including 345. area a) Micro Shed b) Mini Shed c) Large Shed Total allotted land Available Land for allotment a) Number of total allotted plots b) Number of Total allotted sheds Total Industrial units to whom plots/sheds are allotted Units under Production a) Large scale b) Medium scale c) Small scale d) Tiny scale Units under Construction 19 in VIth phase 48 in IIIrd phase 75 in IIIrd phase and Industrial Estate 2609.79 acre 35 acre 1365 142 1102 893 12 71 567 243 129 .970 53 sq.87 acre basic infrastructural land) Number of total developed plots 2955.

of Sick/Closed Units Direct Employment Includes Tribals & local people Total investment on infrastructural facilities (Year 200304 to 2007-08) Approximate capital expenditure on units in production Average Annual Production 1 12 52 64 80 27.550 (approx. 3.) 11.050 crores Rs.550 crores .a) Large scale b) Medium scale c) Small scale d) Tiny scale No.42 crores Rs.900 (approx. 36.3.) Rs.

The most important factor in our case is Payment days. 2. ENGINEER (FINISHING) JR. These are annual and monthly assumptions that show the consistent growth of the company. 7. after which unpaid accounts will inhibit our cash flow. We assume a healthy growth trend in the local real estate market.2 Important Assumptions Plan depends on the assumptions that are made in the following table. ENGINEER (STRUCTURE) SR. Company‟s cash flow depends on the monthly collection from the client. We assume that we stay in line with the continuing advances in technology and housing. we need to develop a permanent system of receivables financing. since we collect on a monthly basis. cash flow should maintain at a steady level.SECTION 14 Financial Plan We want to finance growth mainly through cash flow. We can't push our clients hard on payment days. We recognize that this means we will have to grow more slowly than we might like. We allow for a 25day grace period. Therefore. However. Growth in both unit payments as well as increasing the percentage of growth margin. using one of the established financial companies in that business. TEAM DH/DPH PROJECT MANAGER SR. 7.3 Key Financial Indicators The following chart indicates our key financial indicators for the first three years. along with a continued strong local economy. we are assuming that the majority of the collections will be timely and in full. Some of the underlying assumptions are: 1. Since we operate on a monthly basis. ENGINEER FOREMEN SUPERVISOR CIVIL WORK PROJECT HEAD PLANNING ENGINEER ARCHITECT 0 20 100000 20 40000 20 35000 20 35000 20 25000 20 20000 20 20000 0 20 120000 20 40000 20 40000 0 2000000 800000 700000 700000 500000 400000 400000 0 2400000 800000 800000 .

DATA ENTERY SOFTWARE AUTOCAD ADOBE PROFFESIONAL MICROSOFT OFFICE TALLY INFRASTRUCTURE IT TELECOM 20 20 20 20 20 20 0 20 20 0 20 20 20 20 20 0 20 20 20 20 20 20 20 20 20 45000 35000 35000 20000 20000 15000 80000 40000 80000 35000 35000 35000 20000 35000 35000 25000 10000 40000 35000 30000 25000 15000 900000 700000 700000 400000 400000 300000 0 1600000 800000 0 1600000 700000 700000 700000 400000 0 700000 700000 500000 200000 800000 700000 600000 500000 300000 24400000 250000 250000 500000 500000 10000000 10000000 3000000 24500000 7.4 Break-even Analysis The following table and chart summarize our break-even analysis. According to the calculations.PROJECT MANAGER SENIOR ENGINEER (STRUCTURE) SENIOR ENGINEER (FINISHING) FOREMEN SURVEYOR ASSTT SURVEYOR BILLING DGM SENIOR ENGINEER MEP DGM / AGM SENIOR ENGINEER ELECTRICAL SENIOR ENGINEER PLUMBING SENIOR ENGINEER BILLING FOREMEN SAFETY SAFETY OFFICER SAFETY SUPERVISOR SECURITY OFFICER GUARD ADMIN MANAGER ADMIN ASSISTANT STORE MANAGER STORE ASSTT.. the number of units we will need to rent out to cover our monthly costs is shown below. With per month fixed costs and a variable per-unit cost. we will break-even within our first year .

000 ɀ15.70.36% Year 2 ɀ5.of operation.000 55.000 ɀ0 ɀ157.00.57.6 Projected Cash Flow The following cash flow projections are a key part of company early success.75.100 ɀ50.20.70.000 ɀ13.39.74.55.900 ɀ0 ɀ2. The annual cash flow figures are included here and the more . We are projecting a healthy gross margin for the first year.00.800 ɀ79.20.28.21.51% ɀ105.000.100 ɀ64.00.41% ɀ90.100 ɀ2.000 ɀ8.000 ɀ93. The monthly cash flow is shown in the illustration.000 ɀ16.000 ɀ2.10.37.22 ɀ3.000 ɀ0 ɀ190.700 2.6 00 ɀ3.55.000 ɀ8.00.30.000 ɀ14.600 ɀ2.62. Sales are increasing in 2014 and continue steadily after the third year.44% Year 3 ɀ6. We show a net profit in 2016.300) -3.59. The planned projections are included in the attached Profit and Loss Table.500 2.00.80.000 ɀ17.37.000 ɀ15.000 ɀ19.00.50.300 ɀ2.63.000 ɀ12.000 ɀ19.300 ɀ108.000 ɀ2.700 ɀ127.000 ɀ12.100 7.000 ɀ7.05.75.60.08.800 ɀ105.85.000 ɀ13.75.07.55.000 ɀ5.50.000 ɀ2.73.30.82.33.5 Projected Profit and Loss The projected profit and loss for company is shown on the following table.900 ɀ2.13.000 ɀ0 ɀ2.00.00.000 ɀ13.000 ɀ92. This assumption is probably unrealistic.40. with one bar representing the cash flow per month.12.53.40.200 ɀ68.71 ɀ13.600 ɀ0 ɀ2.74.70. and good word of mouth around the university area.49.800 52.38.20.800 ɀ2. Break-even Analysis Monthly Units Break-even Monthly Revenue Break-even Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost 41 ɀ27.00.37% 7.53.22. Pro Forma Profit and Loss Sales Direct Cost of Sales Other Costs of Sales Total Cost of Sales Gross Margin Gross Margin % Expenses Payroll Marketing/Promotion Depreciation Leased Equipment Utilities Insurance Maintenance Rent Payroll Taxes Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales Year 1 ɀ4.000 ɀ0 ɀ231.000 ɀ15.42% ɀ1.42.000.000 ɀ0 ɀ3.000 ɀ14.13. due to the public exposure to the units.73.000 ɀ62.38. This is an aggressive projection that will help our efforts to keep total cost of sales low while increasing gross margin.80. The break-even assumes that all units will be occupied and that all payment will be paid in a timely manner.100 ɀ0 ɀ13.11.38. therefore our initial break-even per unit will most likely be higher.69.200 ɀ0 ɀ14.00.300 ɀ0 (ɀ14.16.60.000 ɀ4. We will also have very low marketing costs. and the other the monthly balance.100 47.59.

000 ɀ0 ɀ0 ɀ6.95.27.77.000 ɀ0 ɀ0 ɀ4.549.500 (ɀ39.15.94.41.600 ɀ513.114.29. and a sufficiently healthy financial position.000 ɀ26.36.074.057.94.00.85.22.000 ɀ23.05.500 ɀ1.300 Year 3 ɀ6. Pro Forma Cash Flow Year 1 Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax.000 ɀ24.800 ɀ5.000 ɀ318.061.000 ɀ1.12.700) ɀ14.69.000 ɀ513.31. HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance ɀ4.900 Year 2 ɀ14.253.600 Year 3 ɀ128.04.7 00 ɀ5.05.900 ɀ22.100 ɀ1.770.500 ɀ0 ɀ0 ɀ0 ɀ627.400 ɀ1.000 ɀ2.000 ɀ2.000 ɀ1.000 ɀ408.94.64.42.48.900 Year 2 ɀ5.100 ɀ1.00.100 ɀ1.41.44.38.25.38.200 ɀ56.000 ɀ1.000 ɀ1. VAT.12.800 Year 1 ɀ35.75.900 ɀ12.64.65.65.64.05.12.7 Projected Balance Sheet The balance sheet in the following table shows varying but managed net worth.94.00.00.400 ɀ0 ɀ2.000 ɀ2.49.65.200.55.500 ɀ1.78.771.000 ɀ25.200 ɀ575.38.000 ɀ0 ɀ8.80.606.000 ɀ0 ɀ1.38.900 ɀ19.200 Year 2 ɀ33.00.00.400 Year 1 ɀ90.600 .100 ɀ1.00.50.37.000 ɀ1.00.108.100 7.900 ɀ1.000 ɀ2.600 ɀ6.64. VAT.37.77.800 Year 2 ɀ105.22.40.700 Year 3 ɀ37.900 ɀ1.000 ɀ65.75.12.000 ɀ3.500 (ɀ1.000 ɀ31.83.200 ɀ0 ɀ10.600 ɀ1.600 ɀ0 ɀ5.000 ɀ4.00.574.000 ɀ66.00.76.22.000 ɀ447.757.31.300 ɀ1.000 ɀ41.770.00.21.94.60.00.900 ɀ1.725.300 ɀ20.000 ɀ44. The monthly estimates are included in the appendix and are a good indicator of annual value.00.05.900 ɀ0 ɀ570.50.515.100 ɀ0 ɀ1.900 ɀ1.94.600 ɀ0 ɀ12.800 ɀ10.37.400 ɀ408.187.99.000 ɀ0 ɀ0 ɀ5. HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax.200 ɀ457.200 ɀ46.500 Year 3 ɀ19.00.69.important detailed monthly numbers are included in the appendix.00.800 ɀ0 ɀ15.000 ɀ0 ɀ1.86.00.09.510.100 ɀ12.300 ɀ12.65.080.75.00.100) ɀ54.744.91.000 ɀ1.49.50.65.200 ɀ4. Pro Forma Balance Sheet Year 1 Assets Current Assets Cash Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities ɀ54.000 ɀ1.000 ɀ633.2 00 ɀ63.000 ɀ12.46.38.00.00.00.

50 3. Liquidity Ratios Net Working Capital Interest Coverage Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout 0.61% 100.41% 50.88% 2.70% 9.96% 0.43% 100.200 ɀ164.42% 53.000) (ɀ14.300) ɀ145.35 7.a n.a n.44% 7.53.97% 89.500 ɀ183.30% 0.09% -1.47 3.200 (ɀ91.a n.800 ɀ145.a n.72.00% 0.59 0.30 9.143) 1.a n. to Liab.47 90.35 8. They point out liquidity.42.04 (ɀ30.36% -10.18% 100.96% 12.42% 0.83% Year 3 2.13.00% 52.17 31 0.a . We expect to generate acceptable ratios for our profitability and return Ratio Analysis Year 1 Sales Growth Percent of Total Assets Other Current Assets Total Current Assets Long-term Assets Total Assets Current Liabilities Long-term Liabilities Total Liabilities Net Worth Percent of Sales Sales Gross Margin Selling.771.a n.22% 0.16 2. debt.300) ɀ13.74% Year 2 2.09% 100.200 (ɀ93.96 27 0.64% 0.93% 12.900 ɀ1.55% 35.77 2.a n.a n. General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios Net Profit Margin Return on Equity Activity Ratios Accounts Payable Turnover Payment Days Total Asset Turnover Debt Ratios Debt to Net Worth Current Liab.21% 53.11.600 ɀ1.07% 2.82% 98.00% 3.73% n.79% 0.00% 59.00% 3.77% 2.34 0.41 1.00 Year 2 23.61 0.96% 5.74% 84.57% 7.16% 17.68% 1.87 4% 0.91% 52.a n.209 0.75 0.a n.100 ɀ1.87 4% 1.86.12% 0.77% 40.69.38.00 Year 3 13.39% 11.72.70% 7.36% 47.37% 1.50% 100.04 ɀ19.37% 7.30% 100.a n.17% Year 1 -3.28 59.09% 9.50 0.700 ɀ164.27% 94.Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth ɀ251.50% 90.00% 55.27 0.21% 87.253.900 ɀ257.39% -10.00% 12.83% 46.29 3% 0.700 ɀ183.51% 50.600) ɀ14.73% 100.00% 100.05% 3.16 3.60.600 ɀ261.04 (ɀ31.39% 0.a n.8 Business Ratios The business ratios for the years of this plan are shown below.90 1.83.00 0.420) 1.17 29 0.757.93% 0.79% 11.41% 17.61% 85.00% 3.65% 88.68% 1.41 88.57% 10.26. performance and some other important aspects.60.41 3.a n.25.26100 7.79% 100.47 0.86.200 (ɀ106.50% 98.00 Industry Profile 4.47% 1.56.00% 47.86.50 89.

and if you are on track to meet objectives. Employee Turnover A large part of how your business performs as a whole is how your employees are treated and managed. Poor work conditions or low wages or lack of advancement potential could be reasons for a change. Business performance measurement tools provide a window into how every element of your business is working. Sales are a separate entity from the balance sheets and financial documents. Performance measurement tools : Financial Statements When calculating business performance. and if yours are not satisfied. it is an indicator of poor performance is some area. High employee turnover indicates a general dissatisfaction among your employees. one of the first places many people will look is at the company's financial statements. and are considered lagging or leading. Typically. performance measurements fall into financial or non-financial categories. Customer Surveys Every business relies on the customers who purchase their product or service to survive. Sales Monitoring the sales totals that are coming into the business is a good tool to measure performance. . cash on hand. balance sheets and inventory are all valuable indicators of the health of a business. Lagging measurements give feedback to past performance and leading look to the future. There are several business performance measurement tools you can use to analyze all aspects of your business. Asking your regular customers and clients to complete anonymous customer satisfaction surveys can help point you in the direction of what they really need to be happy. Profit and loss.SECTION 15 PLAN IMPROVEMENT Performance Measurement Performance measurement is an important factor for a business as it moves into the future.

ROE • Cycle time f) Employee performance and morale  Verbal/written counseling. and how your sales team presents them to customers. whether they are fairly priced. as well as many other areas. Quality Audits Auditing your production and management processes on a regular basis will help you keep everything running smoothly and efficiently. PM is also known as a process by which organizations align their resources. a department. Performance management (PM) includes activities which ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on the performance of an organization. Performance indicators: • Sales • Service quality • Organisational measures • Market share • Cash flow • Regulatory approval • ROI. systems and employees to strategic objectives and priorities. It will also let you know if there are any particular areas that are being more wasteful or inefficient than others. at the achievement of a Strategic Goal and at any other time deemed necessary. . Implementation of this plan is to be a fixed agenda item at meetings of the Board of Directors. Plan Review and Up Date To ensure the plan continues to provide a sharp focus and remain responsive to change it should be formally reviewed and updated every six months.They show how your products are being perceived. and if the quality procedures are consistently being met. employee. or even the processes to build a product of service.

        Based on this dialogue proceed with the development of a performance improvement plan. and the time frame within which the desired performance must occur. A discussion with the employee to understand the reasons why performance is not at the desired level. Inform the employee as to how staff performance will be monitored/ reviewed. Describe the desired performance. if there are any specific circumstances that preclude the employee from meeting the attendance policy. For attendance issue you may want to consider engaging in a discussion with the employee. Insert signature and date lines for the staff member and supervisor to note that the plan has been discussed. Identify action steps that can be taken to reach the desired performance. A performance improvement plan and conversation include:    Description of the performance that needs to be corrected and why it needs to be corrected. University Rule. or policy that has been violated. Establish a date and time to discuss progress (successes and challenges) in changing the performance. Identify the expectation. Termination – the unit appointing authority should consult with OHR Employee Relations prior to involuntarily terminating an unclassified staff. if applicable.   Documented performance improvement plan. Identify and select any additional resources that the unit may provide to help the staff member improve the performance. A statement describing how the unit is negatively impacted by the lack of performance. any qualitative or quantitative measurement. .

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