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The Miracle can happen at here @ Home Karaoke

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Preface
This project was written concerning Feasibility Study Project for study, feasibility and Evaluation of the project. The objective of this report is study the Feasibility Study to launch new business project. We use the information that we have research and observed to study the Feasibility Project .The content of this report consist of Introduction, Industry Profile, Market Feasibility Study, Technical Feasibility Study, Financial Analysis, Risk Management, and Summary We are hoping that our report will be utility and helpful for everybody who is interested as much as possible. If there are any mistakes in this reporting, we will apologize about that mistake.

@ Home Karaoke Group

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Executive Summary Our company project is @Home Karaoke Company. We pound to present the new complete entertainment center to satisfy the customer in ChiangMai. The business comes along with an awesome karaoke service served to all customers. As of the primary concern, our product is a “must” related to the concept of most relaxing, most comfortable, and extreme friendly alike as if the customers are singing in the charming, luxury, and warmly senses at their homes. Furthermore, with the professionally in karaoke services, thus we’re appreciated to provide the most readiness and perfect karaoke rooms altogether with best of the best premium equipments distributed despite others businesses within the same market. Beneath the spectacular karaoke rooms, the unique designs and styles is delivered given varieties of favorable atmospheres for particular customer. Moreover, the premium food and beverages service is also available to comfort the customers at highest level.Our product is concerned as an entertainer in response to customers’ needs who’s habitually music and singing lovers and those who wish to release themselves out of the daily seriousness. Therefore, our company is appreciated to present the brand new karaoke service to serve the needs and want of customers which is always increasing. The reasons why we chose Chiang-Mai as the destination for the service to take place are because the average income survey of the residents in the target area that is quite high which can be observed from the website thaipr.net where the average per capital of the Chiang-Mai people has tap up to eighty one thousands one hundred and five baht. That’s ranking the higher income compared against others provinces’ residents in the same region. Thus, the investors can be assured of getting profits in return.This project is planned to be launch and promote during the year 2011. In addition, the promotion will be done through Billboard advertising at the most center of the town along with leaflets distribution for 3 months to inform the customers of our business. According to the estimation of profits that’s going to be obtained from @Home Karaoke, it is expected that there would be profitable visible after the fourth years of operation and will continue to return on investment within the fifth year. By the way, the investors are able to see the worthiness of investment

4 since the first year though it’s still not possible for the return on investment but they can be sure that their money won’t be worthless as the revenue will continue to increase during the next years ahead.

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Contents Page Preface Executive summary Chapter 1
Introduction

A B 1

-Background and Significance of the Project -Project Objectives - Benefits of Project -Activities/Time Frame Chapter 2 Industry Profile -Nature of Industry -Situation of Industry -Product/Service -Vision of your Organization -Mission -Strategy -Corporate Level -Business Level -Functional Level

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Chapter 3
Market Feasibility Study - Market Analysis -General Environment Analysis -Competition Analysis (3C Analysis) -STP Analysis -Marketing Mix Strategy -Sales Forecast/Profit Estimation -Marketing Expenses -Conclusion

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Chapter 4 Technical Feasibility Study -Production and Operations Analysis
-Cost of Investment -Investment Cost -Operating Cost

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6 - Management Analysis -Conclusion

Chapter 5

Financial Analysis -Profit/ Loss Statement -Cash Flow -Balance Sheet -All financial Statements

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Chapter 6 Chapter7 Reference Appendices

Risk Management Summary

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Chapter 1 Background and Significance of the Project
Karaoke shop in Thailand is very popular in teenagers and workers group because this activity make the customer feel relax from their daily works or their lessons and also decrease stress too. From the researching of Hotline 1323 that is the consultant about mental disorder through the telephone they tell that the growth rate of Thai people who have serious problem in their life are increase from 28,289 in 2008 to 83,602 in 2009 (http://74.125.153.132/search? q=cache:UM3D1xSRGIUJ:hi.spiceday.com) Moreover that; from the researching of Dusit pole tell that Thai people try to relax from their problems by find the activities that can help them more happy such as listen to the music and watching movie for 34.61% ( http://www.ryt9.com/s/sdp/484987). So karaoke industry is the best way for them to relax. But in now a day Thailand there are few of the modern and chic Karaoke shops that meet with the customer needs and they also don’t provide the different design karaoke rooms for customer to choose. In contrast; the growth rate of karaoke industry of Thailand is higher refer from the growth rate of Major Cineplex. Their net profit increase from 695 in 2006 to 1227 in 2007 so they try to expand their business and pay more return on equity to the investors from 20% in 2006 to be 25% in 2007(http://corporate.majorcineplex.com/TH/main.php), therefore; we try to launch this business. The name of our company is At Home Karaoke Corporation. The reason that we use this name is; we want our customers feel like they are singing songs at their home; they will feel comfortable when they stay at here because we provide many kinds of service to make the customer more convenient. At Home Company is located in the city of Chiang Mai,. The reasons that we choose Chiang Mai to locate our company is; our target market group is the students in the university and in Chiang Mai they have a lot of universities such as Chiang Mai, Mae Joe are located in this province so this is the suitable place for us to

8 launch our company in order to attack our customers, it is the center of economic and tourism industry in the Northern part of Thailand. There are 1.6 million of citizens and growth rate of economic (Gross Provincial Product: GPP) in 2008 is increase for 10,955 million baths or 9.28%. Many of customers always come to travel and spend their money at this place especially in festival period, Chiang Mai people have high costs of living so they will have high power purchase to spend their money for relaxation because they have revenue per capita 81,105 baths (http://www.thaipr.net), there are many attractions that can attract lot of tourists in each year. At Home Karaoke has many kinds of songs both Thai and international songs for different customer style. We use high-technology equipment to serve our customers such as controller touch screen monitor, LCD TV, surrounding stereo, wireless microphones, etc.

Objectives
After doing this project we plan to; 1. To know more about the right way to do the good project. 2. To analyze some factors that can abstract the business in the real life such as economic situation, customer behavior, and also the strength and opportunities of our competitor . 3. To know more techniques that necessary to concern when doing the business such as the strength and opportunities of our company. 4. To describe and evaluates the business practices in the various area. 5. To study about planning the karaoke business in Thailand and also try to solve the problems that can occur when doing the business such as if the revenue of customer decrease what the promotion that we should select to change this bad situation to be better.

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Benefits of project
We will get more knowledge about doing the project and apply it to the real life. Know about planning before making a decision in doing the business. Understand the economic situation of Thailand and Chiang Mai. Know about the competition and karaoke industry situation in Chiang Mai Get to know about the several of customer behavior in Chiang Mai. To be well know in world widely and accept in generally. Get to know about how to connect with other business which that related with karaoke business. Get to know about the new technology of studio and equipment of karaoke business. Get to know about the approach of project case study for successfully.

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Grant Chart

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Chapter 2 Industry profile
Nature of Industry
Week 1 November Week Week 2 3 Week 4 Week 1 December Week Week 2 3 Week 4 Week 1 January Week Week 2 3 Week 4

Project Explore market need Set up strategic plan Define the business opportunities Develop business plan Plan for action Identify needed and cost of resources Set standard quality of service Develop standard of service Design concept of promoting Organize advertising Launch business

Karaoke is a Japanese word which “kara” means empty and “oke” means orchestra, so karaoke means the tape which has only instrumental song without vocal voice. Karaoke Business was originated in Japan that used in music production companies for singer practice. Karaoke is useful for concert or music show because it isn’t necessary to bring musical equipments and musicians. Karaoke business was established as entertainment business and in 1977 was the popular year in the entertainment market because Japanese behaviors like singing. In 1991, the survey showed there are 70,000 Japanese restaurants installed karaoke and 52 millions people prefer to sing karaoke. Karaoke was got into Thailand around 1977 which started in Thaniya area, night clubs area that Thaniya Street was the center of Japanese business men in the past. The first time of Karaoke in Thailand was popular in night life people because there are sakes, spirits, and alcohol beverages with women’s services. At that time, Karaoke was called Eight Tracks Music that means a music player which plays only instrumental songs, tape as normal tape but it’s bigger than. Customers can read the lyrics in a paper and sing follow it. From Thaniya Street, Karaoke is expanded as a night entertainment around Bangkok and cities even in high class clubs and hotels, restaurants, and

13 cafés around Thailand to respond all classes of people. The government determined night clubs must have musical instruments not more than 2 pieces that made those night clubs like to use keyboard and sequencer instead full band that uses MIDI (Music Instrument Digital Interface) system. Around 1996, Karaoke Business was popular in middle class restaurants in Bangkok and provinces. Businessmen as investors, who manage Karaoke jukeboxes business and own them, will bring Karaoke jukeboxes into restaurants and share profits with restaurant owners 30% and the rest belongs to Karaoke jukeboxes owners.

When Karaoke is expanded widely and Thai people are more bold expression, people decrease their attitudes about Karaoke as night entertainment. Major Cineplex Company is the influencer which makes people changes their attitudes about Karaoke definitely. It established first Major Karaoke at Ratchayothin branch. The Major try to create Karaoke Business image to be Karaoke Clean and emphasizes on students and families groups that makes it is positive. It also has been supported from music production companies who produce Karaoke cd and Karaoke equipments are more modern that makes Karaoke Business is fast growing and very popular. Actually, there are many Major’s competitors; SF Music City, Big Echo, and Karaoke shops without women’s service and in day. In 2002, Thailand began to collect copyright according to WTO condition that collect from Karaoke Business first. GMM Grammy Public Limited Company is the first who collect copyright then RS Promotion Public Limited Company, Copyright Music Limited Company, and others 15 companies follow collecting seriously other than TECA Company which manages international music copyright. Regular Customer Students and teenagers around Chiang Mai city People who love to sing songs At Home’s members

14 Product Life Cycle 1. Introduction: At Home Company was established in 2007 and its vision is “we want to be the leader of karaoke industry in Chiang Mai’. At Home uses high technology karaoke equipments and has the many kinds and styles of karaoke rooms with the standard service to serve customers. In this period, the company promotes by using signage and local radio stations around Chiang Mai province, and also promote in the internet to be well-known worldwide. The company emphasize on main target groups, students and teenagers. 2. Growth: The Company has many promotions to attract customers more and more; sing more than 3 hours get free an hour, for banquet also has special gift to customers such as cakes for birthday, free an hour etc. Promotion of the marketing mix strategy is used most to attract customers to make they feel loyalty to the Company. The best service that company selects to serve customers is make positive words of mouth of customers. At Home expands customer groups to other but students and teenagers still are main target groups. 3. Maturity: When At Home Karaoke is well-known in Chiang Mai and there are many regular customers, the company has member club for those customers to reward them. In this period, the company promotes product less because product has been popular in karaoke market. So the company must try to make profits as much as possible. 4. Decline: This situation occurs because of external environment factors; political, economic, socio-cultural, and technological factors that can affect and influence to the company. At Home must plan the support plan to encourage business such as setting lower prices. Situation: Nowadays karaoke industry in Thailand is more accepted for Thai people. Although there are high competition because of it has many entrepreneurs both of small size and large size. Otherwise it has a jukebox which

15 has lower price than Karaoke shops. But Karaoke shops and workplaces still have continuous growth rate and demand of customers are support to this business, the power of purchasing of customers in Chiang Mai is increase because the revenue/ year of them rise for 8.83%. The competition of this industry can not compete in new of songs but their will compete by use the different of equipment, decoration, service, etc. So we need to adapt the new technology in order to get high growth rate in competition. Then the politic situation in nowadays is also conflict to much. So karaoke business is the best way for them to avoid from this bad situation. From the research of Dusit pole tell that Thai people try to relax from their problems by find the activities that can help them more happy such as listen to the music and watching movie for 34.61% ( http://www.ryt9.com/s/sdp/484987).

: Middle Market Having continuous growth rate and have variety entrepreneurs are produce karaoke player for home such as SONY, PANASONIC, SOKEN, LG, etc. Promotion and marketing competition that make to the market has always active including to customer behaviors to more evince and see to singing is relaxation and unique capabilities which make to these business have high growth in the market. Including to technology is coming to karaoke business both of mobile, cable TV, Internet, etc. that make to karaoke business is not only in restaurant or inside the room which the customers can sing a song everywhere and every time that need or want. Product and Service At Home has S, M, and L room sizes. Size S has 16 rooms for 2-4 people; M 10 rooms for 5-10 people; and L 2 rooms for 20-30 people to serve as banquet or party. Each room has their different styles in term of theme colors, furniture but they also have same audio and video system in high quality. Customer will feel they sing their favorite songs in their home. Many kinds of old and updated songs are available; Thai, Asian, and International more than

16 50,000 songs. The karaoke equipments are standard and high technology. The equipments that be used as follow; For the service, At home serve high quality services to the customers as follow; At Home has all kinds of snacks and drinks in Thailand, alcohol drinks for over 18 years. Customer Station can make customers feel comfortable when they want to order snacks, drinks, or they have any problems. Staffs will know the customer’s want from this. Vision: “@ Home, to be a leader karaoke company in Chiang Mai” We want to be the leader of Karaoke industry in Chiang Mai by launch completely such as party arrangement service in different style, snack and beverage service, and variety songs for customers’ need and want. Otherwise we will be first choices for customers when they need to sing songs and relax for free time and we will be the center of the customer who like sing songs. In addition we will grow along with the increasing growth of karaoke industry and have strong base for extend the company in the future. Moreover, we will put customer first, we will respect with each other and we are professional for all in our service. Mission: @ Home company mission statement is to offer the highest quality at competitive price and reliable delivery times. @ Home company mission is build relaxation and enjoyment to the customer or people who like or love in singing Customers can reserve the room an hour early. At Home has banquet service: birthday, valentine, festivals. Staffs are available to serve customers when they have any problems or want anything. Updated songs suggestion every week Internet high speed is available. At Home has member registration for regular customers; they will receive many rights and benefits from the company.

17 and voice of songs which their can find at here. Moreover we are no more chart and fair price for every customer. We will serve service to every class equally. We will provide the best entertainment center for the people who love sing songs and prefer to have meeting in private atmosphere and serve service & products that highest standard quality of integrity. We believe our business will success depends upon offering quality and value to our consumers or customers. We also satisfy the needs of stakeholder which that include with customer and our staff together.

We have a good service, rooms service, and technology that more than the competitors. We are committing to meet the customer’s demand by distributing the best service to be the most satisfied and to offer the high quality. We are committing to serve only copy right music including to we are limit the age of customer less than 18 years old to drink alcohols and we are not support to the customers and our staff to use drug in our place.

Strategies of the company At home is the new karaoke company who wants to growth and get a lot of benefit in karaoke industry. So we try to plan the good strategies that appropriate with our business. The first thing that we have to concern before we will decide to plan the strategies is we have to know about our goal and our SWOT; strength, weakness, opportunities and threats. Because of; we are the new company and we only have a few of experience in this industry so we will have a lot of weakness that make our business can’t compete with our competitors who growth before us. For these reason the main thing that we have to do after we know about our weakness is we have to avoid it by set the plan that can help us to improve or change it to be the opportunities for us. Corporate level strategy

18 We will use growth strategies concept which emphasize on the professional skill to manage our business. Because we don’t have the best skill in this industry and exactly that our competitors have more skill than us. So in order to make us can survive in this industry we should begin to concentrate with only one product that we do and we should growth step by step and also try to improve our skill in the same time that we growth. And after we have more skill and experience in this business that mean we know more about our competitor we will move our strategies to be more concentrate on diversification growth because at those time we ready to compete with the other one who stay in the same industry with us. And we also ready to expand our business to be bigger than nowadays and after that we will be the leader in karaoke business of Chiang Mai like we have planed.

Business Level Strategy This is the way that can help us to have more advantage competition than the competitors and this is the best way to attract the customers from our competitor to be our customer instead. So we will use competitive strategies in order to make competitive advantage for our company that includes; Product Differentiation; In Chiang Mai; they have a lot of karaoke room providers but the competitors who have the same product and service like us have only one provider in this province. So we have only one competitor who stands in the same level like us that mean this is the good opportunities for us to compete with them. Because of we have the same product like them so in order to attract their customer to be our customers we have to make them impression with our products and service by make it different to our competitor. However; doing customer need analysis is the important thing that we have to concern. If we provide the different product to the customer but if it is not the thing that they want we will lose instead of get more benefit. So because of these our company concentrate about the satisfaction of our customer and try to know about our customer want and need before set the product and service to them. So after we

19 launch our products to the customer they will interest with it because all of these idea are from their opinion and meet with their need.

Functional level strategy This is the important strategy that can help us to earn more profit because it relate with many part of our business such as marketing, producing and also financing. So our business set strategies as follow; 1. Marketing mix strategies For this strategy we set 4Ps that is product, price, place, promotion follow the customer behavior survey in order to make it meet with their need and we also observe from the competitor in order to know about their weakness and use it to develop our product and service and in addition to make our product and service different from them. Product;

People in nowadays want product that is more innovation and it also have to different from the other so we try to set karaoke room in different style and improve more high quality of service than our competitors.

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Price;

Setting product’s price of us based on our competitor product’s price and relate with our product and service. We will set higher price from the competitor because we want to make the customer feel like our product and service have high quality than our competitors. Place

20 We select Chiang Mai to located our company because from the research in this province have only one company that have the same business like us. People in this area have high power purchase to buy our product and service than the other area in northern of Thailand and more over that Chiang Mai is tourism area and many people like to go to travel in this area so if we can attract the customer from them we will get more benefit Promotion We select to promote in many channel because we are the new one so we have to introduce our product to the customer and make them know more about us in order to invite them to buy our product and service. 2. Human resource management All of our staff will be trained to serve high quality of service to the customer and they have the same standard to do when they have to meet with the customer because the objective that we already set is to make the customer satisfy and happy when they experience with our service. However; it must not against with the good ethic that we do. 3. Financial We have financial strategies to analyze revenue, company expense, and operation by consider from all financial resource such as from karaoke room, internet café and snack and drink or the other service that we provide to the customer. We have financial database to separate each expense in different kind. e also have the financial auditor to allocate our money and do report to tell about how our money is spent or received.

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Chapter 3 Market Feasibility Study
Market analysis General Environmental Analysis In order for a firm to effectively compete in an industry, an analysis of its specific industry must be undertaken. This is done to provide the firm with a description of the elements in society that directly effect the industry and the direction managers must take to implement appropriate strategies to survive. This study is commonly referred to as the general environmental analysis. It primarily consists of four primary factors, which are political/legal, economic, sociocultural, and technology. These four sections describe the external environmental factors a firm must understand to effectively compete in a specific market. Political/Legal Factors Over the past 2-3 years, Thailand faced the political and social problems that can make entrepreneurs feel unsure for their investment, they also worried about the domestic insecurity. But because of the economic, social, and environmental problems make consumers feel stress and concern about their life more. So, people seek for any entertainment products and services for their life, singing Karaoke is very interesting choice in present and becomes pleasure and social activities. Nowadays, the government tries to encourage positive domestic economy and solves the political problem to make the active investment.

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Economic Factors The overall economy within the country become positive because of the government’s economic stimulation policy and the global economic problem is going to get down. The latest figures from the Fiscal Policy Office forecast the gross domestic product or GDP at the end of 2009 will be -3% that less than 2.53.5% forecasted.

The overall economy of Northern part has positive sign since the quarter 2. There are orders to purchase electronics components for the exportation that prevent lay-workers, so the figures of employment in 2009, May increase to 7.1 millions people or 9.1%. The domestic spending is increasing; accelerate the disbursement, and the results of government’s economic stimulation policy that make Northern people have high power of purchasing. Chiang Mai is the economic and tourism center of Northern with 1.6 millions populations and also has the continuous of economic growth. At the end of 2008, the Gross Provincial Product or GPP was 128,975 millions Baht increases 10,955 millions Baht or 9.28% and the GPP per Capita was 81,105 Baht increases 6,581 Baht or 8.83% that can reflect people and businessmen in Chiang Mai and the close provinces have high power of purchasing and also need more finance and investment. (http://www.thaipr.net/nc/readnews.aspx? newsid=03BE7A2A1092E67D36497A391540FF2A&query=zdG1w9Lgp9S54L/ pzQ==) Socio-cultural Factors Now a day, karaoke become to be the part of entertainment business in Thailand and the most people like to enjoy with karaoke (http://www.ryt9.com/s/sdp/484987). Karaoke can select and control a song by myself. Karaoke is appropriate with friend group or many people group who come to join in party, anniversary and celebration because good way to make

23 relationship in the group that show as people is social animal because people shouldn’t sing karaoke alone on the other hand karaoke can reduce stress mode from the work, home or many thing when shout and release emotion. Stress can happen with everybody such as student, business man, worker and elderly that we can’t avoid with stress mode so we should find relax methods as similar in Japan country. Karaoke create pop culture in teenager group explicitly because hobby of teenager often spend time to entertainment karaoke.

Technological Factors The information technology or IT is the technology that expands rapidly and has more functions while it is low price. The result of the IT development can be applied widely, so IT is involved in human life both directly and indirectly. For the karaoke business, when karaoke equipments, monitors, microphones are developed to be more modern and update to meet the customer needs with convenience, luxury, and more functions that an make electronics devices are low costs and complete, so the opportunities to do karaoke business are easier than in the past. Summary of the General Environmental Analysis The general environment is a force that must be strongly to considered for karaoke companies to survive in their industry. The biggest force that weighs heavily on the industry is economy conditions and technology that can change the industry in a short period of time. There are many opportunities to be found in this industry and they mostly outweigh the threats. So, before we will launch our karaoke company to industry, we should to analysis and know the general environment of this industry because it is important factors that effect directly for our business. Competition analysis It is the main thing in business planning because it will help us to know about strength and weakness of our competitors and also help us to change the

24 bad situation to be the good opportunities for us. We can analyze competition as follow; 1. Competitor Analysis In Chiang Mai have a lot of karaoke room because they are tourism city that many of people like to travel. So we will have a lot of competitors too but all of them can separate like this. 1. Direct Competitor There are the competitors that compete with us in the same market or have the same target market like us and they also have the same product and service like our company. From the research we know that in Chiang Mai has company that provide product and service like us follow these; 1. Bloom Karaoke

Their karaoke shop is located at JJ Market and open 17.00 pm- 02.00 am in everyday. They provide 9 different room colors according to the different season such as summer room they provide in orange tone. All the songs are always updated and 42 inches LCD and wireless microphone are available in

25 order tomake the customer more convenience. For the price of V.I.P. room they begin at 300 baths. (http://www.bloomkaraoke.com/index.html)

2. Bully Sing along They provide 21 different karaoke room styles in Kard Suan Kaew such as

Jail Room

Hip Hop Room

Erotic Room

Japan Room

-Sound wave -Yellow melody -Bed club -Capsule -Driving room -Hip hop -Jazz -Sea -Taytale -Wanwaan -Pacha -Space -Red beat -Rung Mod -Sexy -Eskimo -Sky * For the price; they begin at 120 to 259 baths (http://www.kadsuankaew.co.th) 2. Indirect Competitor

26 There are the competitor who compete with us by select the different target market but the characteristic of their product and service is like our company and from the research we will know that in Chiang Mai there are many kind of karaoke room services as follow;
1. 2. 3. 4. 5. 6. 7. 8. 9. SHINYU THAILAND COCKTAIL LOUNGE & KARAOKE CLUB MUSIC ROOM A.I.I. COCKTAIL LOUNGE & KARAOKE CLUB ZOMBIE KARAOKE MARIKO KARAOKE TOP TEN KARAOKE THER KARAOKE TEN KARAOKE

10. RINKAEW KARAOKE 11. PALACE K.T.V. KARAOKE 12. ORIVIA KARAOKE 13. NIGHT STATION KARAOKE CLUB 14. NEW ORIVIA KARAOKE 15. ALL COCKTAIL LOUNGE & KARAOKE CLUB 16. AGASSI PUB & KARAOKE 17. Major Karaoke

(http://th.yellow.co.th/YellowPages/Chiangmai/karaoke_map.1.html) 2. Customer Analysis The whole population of Chiang Mai is 1,670,317 and only in Amphor Muang is 240,046(http://:www.amphoe.com/). Target market that our company choose is the person who love to sing songs and like to arrange party and from the research we will know that this kind of customer the most of them age around 15-25 years old (http://dek-d.com/content/all/15633/) and some of them are the people who are working and always set party to meet with their coworker. From this characteristic of our target market we can adapt all of this information to improve our product and service in order to satisfy and attract the customer from our competitor. STP Analysis

27 1.Segmentation We separate our market according to their behavior to consuming karaoke service as follow; 1. come to sing song 2. come to drink 3. come to arrange party 4. come to have sexual

Sexual drink

party

party sing song drink

sing song

Sexual

Target Market. Our target market of at home Karaoke Company is the people who want to sing song and set their party because they gain a lot of area in this chart and we have ability to serve service to them. Positioning @ Home karaoke is karaoke rooms that provide different room style for the various customers but base on the feeling that they are singing song in their home. There are very appropriate for the people who prefer to sing a song and want to relax from their work with friends and also their family. We provide high quality of service to make the customer more convenient and feel like they singing in their home. High technology equipments are available to please the modern people who love their health because we not allow smoking in our karaoke room area like the other place.

28 Marketing Mix Strategies (4P) The Marketing Mix Strategies are often referred to as the “Four P’s” since the most important element of marketing are concern with: The first is Product or Service Strategies, our core products are 28 rooms of Karaoke and 2 rooms for arrange banquet. The rooms for Karaoke have 3 sizes. There are 16 rooms for small sizes (2-4 people), 10 rooms for middle sizes (5-10 people) and 2 rooms for large sizes (10-15 people). Moreover, in At Home Karaoke have snacks and drinks in order. The alcohol drinks are only sold for people who are more than 18 years old only. Each room has their different styles in term of theme colors, furniture which that decorated in specific styles but they also have same audio and video system in high quality. Many kinds of old and updated songs are available; Thai, Asian, and International more than 50,000 songs. The banquet room for not more than 30 people for has a mini party in private banquet. Our service will provide high standard for everyone to be satisfied with our service and will come again and again. Price strategies, we will use high price strategies. The reason is our product and service is different and we also provide the better product and service than our competitors. So if we begin to set low price it will make the customers don’t believe in our good products and service and they will think that our product and service is not good like we already advantage to them. However; at the first 3 months after we launch our business we will offer the low price promotion to them in order to invite the customers to try with our goods because this is the first time for us to promote our product and service to the customers and make them know more about us. Moreover that; at the first time that they come to experience with our service we will make them feel happy and get the first impression with our product and service that they cannot forget and have to back to use our service again with their friends who will become to be our new customers. And because of our target market are the people who get money about 5,000 – 10,000 baht/month and the most of them are the student and people who are working so they will have power purchase to buy our product and service at this price. In addition; in different season and different time we will use different promotion to invite them.

29 Place or Distribution Strategies, At Home Karaoke Company is located in the city of Chiang Mai, near the Night Barza of Chiang Mai. There is easy to come and easy to be a meeting point for the customers in Chiang Mai and the foreigners tourist. Promotion Strategies, At Home Karaoke promotes company in several ways for spread our business to be famous and well-known via the web site of our business and other web site for promote to the people is online and promote in local radio of Chiang Mai in Hit radio waves for make more customer. And promote in prominent big signage that’s near the center of teenager and easy to notice. An advertising campaign carried in one area that requires distribution of the product to be in advance of the campaign to ensure there are no disappointed customers. Moreover, we will add more special promotion for attract the customers who are interested. The company has many promotions; discount or gift for regular customers, get free singing hour. Sale Forecast The whole population of Ching Mai is 1,670,317 and only in Amphor Muang is 240,046( http://:www.amphoe.com/). Target market that our company choose is the person who want to sing song and arrange party and the most of them will be the student who study in the high school and university and the officers from the research there are 79,098 for student who study in high school level and there are 61,905 for university student, all of them are study in Amphor Muang of Chiang Mai province. We forecast that our customer will come to our karaoke room as follow; For room size S We provide Hours open (12.00-02.00) Hours of use Prices/hrs/room Total revenue (for 1 day) Total revenue (for 1month) Total revenue (for 1 year) 16 rooms 14 hrs. 7 hrs. 180 baht/room 20,160 baht/room 604,800 baht/room 7,257,600 baht/room

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For room size M We provide Hours open (16.00-02.00) Hours of use Prices/hrs/room Total revenue (for 1 day) Total revenue (for 1month) Total revenue (for 1 year) For room size L We provide Hours open (16.00-02.00) Hours of use Prices/hrs/room Total revenue (for 1 day) Total revenue (for 1month) Total revenue (for 1 year) 2 rooms 10 hrs. 7 hrs. 280 baht/room 3,920 baht/room 117,600 baht/room 1,411,200 baht/room 10 rooms 14 hrs. 7 hrs. 230 baht/room 16,100 baht/room 483,000 baht/room 5,796,000 baht/room

For room King size We provide Hours open (16.00-02.00) Times of use Prices/time/room Total revenue (for 1month) Total revenue (for 1 year) 2 rooms 14 hrs. 10 time/month 12,000 baht/room 240,000 baht/room 2,880,000 baht/room

* We set 12,000 baht to be the base price for each room and this price exclude food price and the other expense. Total for all revenue in 1 year 17,344,800 baht So this is the highest revenue that we can do for one years (Refer from income statement of Major Karaoke in the second quarter of year 2004 (http://www.scis.co.th/prod/pdf/MAJOR-in%20brief%20result %203Q47%2015-11-04.pdf)

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Sale figure of the first years. Price (baht)
1200000 1000000 800000 600000 400000 200000 0 1 2 3 4 5 6 7 8 9 10 11 12

Month

Sale figure of the second years. Price (baht)
1400000 1200000 1000000 800000 600000 400000 200000 0 1 2 3 4 5 6 7 8 9 10 11 12

32 Month

Sale figure of the third years. Price (baht)
1400000 1200000 1000000 800000 600000 400000 200000 0 1 2 3 4 5 6 7 8 9 10 11 12

Month

Sale figure of the fourth years. Price (baht)
1800000 1600000 1400000 1200000 1000000 800000 600000 400000 200000 0

1

2 3

4 5 6

7 8

9 10 11 12

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Month Sale figure of the fifth years. Price (baht)
1800000 1600000 1400000 1200000 1000000 800000 600000 400000 200000 0 1 2 3 4 5 6 7 8 9 10 11 12

Month

Sale figures for five years.

18000000 16000000 14000000 12000000 10000000 8000000 6000000 4000000 2000000 0

1st yrs.

2nd yrs.

3rd yrs.

4th yrs 5th yrs.

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Explaination Due to our company is new for his industry and the customer never know our products so company’s sale in the first year will be lower than the cost that we use to invest. In the second year sales still lose but it will be better than the first year because the customer begin to know about our product and service. We forecast that in the third year sale will be increase and after launch the company we will receive more customers and can attract market shared in third year. From the estimation of our company more than 3 years we will have more competitors and they will attract our customer to be their customer and because of this will effects to our sale to be little more increase. We will solve this problem by try to promote our product and service again in order to remind the customer to use our product again after promote the product our sale will be become to normal situation. Marketing Expenses (Sales Incentive) At Home Karaoke Company has expenses as follow; - Songs Copyright: The expenses depend on karaoke equipments or room sizes that collect from the company per month or year. International songs copy right is always high expenses than Thai songs. The main music companies are GMM Grammy and RS Promotion. - Karaoke Equipments: At Home purchases Karaoke Servers, Mirror Servers, The Customer Stations, Public Players, Device for Songs Ordering, Audio System equipments; including microphone, mixer, amplifier, and loud speaker, Video System equipments including large screen TV, LCD or projector, Reception Station.

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- Decorated Furniture: all of our building will outsource the other companies who have more ability than us to design the exterior and exterior building and also have ability to manage foe all furniture that we want from the plan which we already set. So we only pay for all inclusive about the building , furniture, designer, and labors to make this karaoke room and the company that we use is Khomekon company (www.khomecon.com)Furniture that the company uses to decorate will be different depend on the room styles. - Snacks and Drinks: For food and beverage that will be used when set the party we also hire the other companies to do it. And the company that we will use is Chormuang company (http://www.chormuang.com/) and the price will various follow the design of each party. - Advertisement: At Home Karaoke is advertised on its own website and popular websites which people prefer to search everyday; the expense depends on area’s size that the company must pay per month. Signage costs around Chiang Mai city that the company must pay the rent per month. - Marketing Research Expenses: Such as questionnaires to know the customers’ opinions about the age of customers, their careers, what kinds of their favorite songs, how often they spend for karaoke, how many hours they sing how many people they usually sing with, what service they prefer to order etc. - Internet Service: At Home has internet service to serve customers. New high technology computers, 5, and high speed internet system are available.

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Conclusion: At the first time the business of karaoke shop in Thailand often launch in stand alone feature and to be the prominent karaoke shop in community area. After that, when business of karaoke shop expands to karaoke entertainment center that provide food, beverage, and other service for satisfy our customer’s need. In the future, we are focus to expand our business to relate with other business for add more service to be completely center. Although @ Home Karaoke Company is a medium-sized business in the present but in the future we aspect to lead our @ Home Karaoke Company to being in The Stock Exchange of Thailand in this reason, we need to make stability and try to relate with other business. In first period, we may have restaurant and café business in our Karaoke shop and moreover @ Home Karaoke Company will add more branch and each branch also have restaurant and café business too and @ home has expand in business world as open new strategy with additional service, agent to sell concert ticket respond the customer value to be life style entertainment that create satisfactions for customers and increase more comfortable in other service especially standard service such as reserve ticket system and check show time movie. In the project must to collaborate with alliance and develop technology for prepare to growth the business that name are call" @ home ticket center". All of this is business we'll hope to expand in the future. From foregoing, we have a good service, place, promotion to the customers’ attraction and believe to be a famous in short time period, as well as a good promotion. We will aspect to be leader of karaoke shop in Chiang Mai province. @ Home Company will be launch to completely karaoke center and be fully high technology equipment with the best audio stereo and video system completely which up to standard level of karaoke shop in this area. From this case study, we find that the customer’s behavior more emphasis on the comprehensive entertainment center along with interesting sing song in karaoke shop that high standard quality in audio stereo, video system, and modern decorated in every room and around shop. For @ Home Karaoke Company area

37 we have 1, 600 square meters that include the karaoke room have and have 1,275 square meters and internet café have 100 square meters. @ Home Karaoke Company locates in center of Muang Chiang Mai and also near Night Braza of Chiang Mai which we will be the large and modern karaoke shop in Chiang Mai. Our karaoke shop have beautiful decorate, comfortable, extra room, and the best of audio stereo and video system completely. Moreover that education center, culture and transportation of north and connect with other province such as Lumpon, Lumpang and Phayoa that the best location. In the part of project are ready in transportation for comfortable because be out from the airport international 700 m that a number of tourists as Thai people and foreign pass the passage entry-exit average 3 million person that base on Mahidol street opposite Chiang Mai- Hang dong street in 6 size of traffic. From our availability in these several sides that make @ Home Karaoke Company is ready to create and develop high class level entertainment and emphasis on target market for teenager, working age and much more. For decoration is use in many style and emphasis to be the leader of modern high technology karaoke system. So, before we make decision to launch this business at Chiang Mai Province. We try to find the best location for easy to eyes and survey our target market at Chiang Mai province. The reasons that we should this location are include: 1. Chiang Mai Province and near region are loss the karaoke shops that high standard quality. 2. High number of the people who come to sing songs at karaoke shops and has same life style of people in Bangkok. So that is interesting to investment in Chiang Mai province. 3. We believe in our efficiency and good location which in center of Chiang Mai province and near Night Braza’s Chiang Mai province that is the biggest province in northern part of Thailand and have the populations more than 1,000,000 people

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Chapter 4 Technical Feasibility Study
Production and operations Analysis Product Characteristics (in detail) At Home has S, M, and L room sizes. Size S has 16 rooms with for 2-4 people; M 10 rooms, for 5-10 people; and L 2 rooms for 13-15 people and we also provide king size 2 rooms to serve as banquet or party. Each room has their different styles in term of theme colors, furniture but they also have same audio and video system in high quality. Customer will feel they sing their favorite songs in their home. Many kinds of old and updated songs are available; Thai, Asian, and International more than 50,000 songs. The karaoke equipments are standard and high technology. The equipments that be used as follow; Karaoke Server, a huge store space that is set in the server room. It can be ordered by customers and sent out into customer room at anytime and immediately. Mirror Server, the backup of Karaoke Server that match up with the number of Karaoke Server and it is also set in the server room actually. When Karaoke Server meets any problems, Mirror Server will continue to work to make sure the normal business of karaoke room. The Customer Station will be set in every customer rooms that customers can order services such as snacks and drinks on the LCD TV. This will help staffs to serve customers more efficiently. Public Player for playing the ordered songs from several customer stations. It can be played with order. Device for Songs Ordering for customer to select the songs, including remote controller, barcode songbook, smart keypad, barcode scanner, touch screen, etc. They should be set in customer room which needs one unit. Audio System provides the high quality audio to the customers, including the microphone, mixer, amplifier, and loud speaker. The audio system should be set in the customer room. Video System provides the high quality video to the customers, including large screen TV, LCD or projector. The video system should be set in the customer room. Reception Station for customers to check in, check out, reservation, charge, keep record and print the account. The reception Station should be set in the reception desk.

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For the service, At home serve high quality services to the customers as follow; - At Home has all kinds of snacks and drinks in Thailand, alcohol drinks for over 18 years. - Customer Station can make customers feel comfortable when they want to order snacks, drinks, or they have any problems. Staffs will know the customer’s want from this. - Customers can reserve the room an hour early. - At Home has banquet service: birthday, valentine, festivals. - Staffs are available to serve customers when they have any problems or want anything. - Updated songs suggestion every week - Internet high speed is available. - At Home has member registration for regular customers; they will receive many rights and benefits from the company. Specification and feathers Our business @ Home karaoke provide different style of karaoke room to satisfy the customers. In order to make us to be the leader of this industry in Chiang Mai so we try to make our service different from our competitors. We provide the 10 different room styles and 2 for same as follow; For size S we provide 16 rooms as follow; 1. Emotion room It will be designed in dark room and open pink light for the whole room and furniture that will be provided in this room emphasize on the black tone. 2. Romantic room It will be designed in white room and open dark yellow light for the whole room and furniture that will be provided in this room emphasize on white colors. 3. Natural Room It will be design in dark green room and decorated with many of trees. Furniture that will be provided in this room emphasize on brown and green colors.

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4. Super Space room It will be designed in dark blue room and open yellow light for the whole room and decorated with the equipment that make the customer feel like they are sing song in the real space. 5. Devil room It will be designed in black room and dark light for the whole room and decorated with the equipment that make the customer feel like they are sing song in the real cemetery such as the coffin and the mock ghost . 6. Sweet room It will be designed in pink room and open dark yellow light for the whole room and decorated with the cute furniture and emphasize on the pink furniture. 7. Spring room It will be designed in green and bright yellow room and decorated with the equipment that make the customer feel like they are sing song among the tree garden such as the muck spring tree. 8. Music room It will be designed in colorful room and open different color light for the whole room and decorated with the equipment such as the music equipment. 9. Disco room It will be designed in dark room and open many different light color for the whole room and decorated with the equipment that make the customer feel like they are sing song among the real pub such as bar and the stage for them to dance. 10. Under the hell It will be designed in dark red room and open red light for the whole room and decorated with the equipment that make the customer feel like they are sing song in the real hell such as the copper Pan and the hell trees.

41 11. Rest room The color of wall is orange and around the room has sanitary ware such as lavatory, bathtub something like that. In the room also has sofa because customer will have seat when they want to rest from sing those songs. The light that use in the room is orange light for classic of this room. 12. Living room This room, we use yellow that customers feel to sing in living room at their home. Sofa that we use to decorate is white sofa which is L shape and can contain 3-5 persons on its. And the wall has many pictures to decorate like home. The light that we use to in this room is spotlight. 13. Kitchen room Decoration is Europe style that has many wares such as pans, pot, and ladle locate around the room. The center of room has dining table set, it make customers’ feel like the kitchen in their home. The color of wall is white. The lamp give the white light and hang on ceiling. 14. Library room Library room is decorated like general in homes that has much furniture such as shelf which has many books. Otherwise, in the center of the room has black sofa like in real library room and sofa has soft color and comfortable. The light is soft orange for relax customers’ eye. The color of wall is light brown. 15. Theater room In this style, we don’t emphasize the light because in theater not turn on the light. The room is decorated by white sofa that lay 2 rows which each row has 3 white sofas and two rows is slope. We use vermilion to be the color of walls. 16. Office room The color of wall is light brown because it is soft color that makes customers’ eye to rest. In the room have many office desks and chairs to be office styles. The wall has many small lamp that give white light. For size M we provide 10 rooms as follow; 17. Lawn Decoration same as lawn in front of the homes that floor has green grass which is artificial. We use white swing to be furniture in this style and in the room has small flowers in many vases around the room. We use green and paint the trees around the room that customers feel to stay among real natures. 18. Bedroom Decoration is modern style that the center has large bed and in front of large bed has small sofa that made from leather. The color of wall is young purple and paint pink small flowers. The lamp is orange light for emphasize the color of wall.

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19. Dressing room Two sides of wall are large mirror and another two sides of wall are wardrobes that have many styles of clothes which customers can wear while they sing those songs. The center of ceiling has big lamp to hang. We decorate this room by using purple sofa locate in the center of room. Moreover, the wall has soft pink that suit with purple sofa. 20. Classroom This room decorate like the classroom in school that has blackboard in behind of room. In the center of room has tables and chairs about 5 set. While the wall is decorated by many boards like the real classroom. 21. Deck room The ceiling of this room is more special than other rooms because the ceiling has many small lights like the stars in the sky. And color of wall is black because of it emphasize those lights on ceiling and sofa is comfortable style and is young blue color like seating among those stars. 22. Music room This room is decorated by many musical instruments such as drum, guitar, violin, etc. The wall can keep the voice more than other rooms because this room has loudly voice from those musical instruments. The color of wall is red because it helps to view the bright. Beside the room have young grey sofa that is modern style. 22. Bar room This room like small size pub that has modern chairs and tall chairs shape. Those chairs are colorful because they not swallow with the black wall. The light of this room is more special than other rooms that use the light in the pub. The center of this room has counter bar which consists of liquor bottles but not real. 23. Princess room In this room use luxury furniture such as purple sofa that make from wool of sheep, or even bed that like real princess bed. Color of wall is gold color because it likes the real room of princess. The light that is used to be spotlight for emphasizes the color of wall. And another side of room has white swing and the floor has soft brown carpet. 24. Golf course room The floor of this room use artificial grass that like in golf course. This room don’t use sofa like other rooms but use the car that use to drive in golf course. Moreover, in this room has golf club and holes for customer to play like in the real golf course. Color of wall is white because it not views to oppose with the color of artificial of grass. 25. Garage room This room the entrance is slide doors and color of wall is orange like the color or rust. And the center of room has classic car that is red. The tools that use

43 to repair the car are located around this room. The light that we use to be dim like the real garage in the home.

For size L we provide 2 rooms as follow; 26. Art s room The wall of this room is white because of many pictures are decorated in this room like gallery and many flowers are painted on the wall. Sofa that use in this room is black and the light that is use in this room is young orange light for emphasize those pictures on the wall. 27. Sea room This room strange more than other rooms because this room is cheerfulness room. The wall of this room is blue and paint many clouds like the sky when they see at the beach. The floor of this room use sand and the center of this room locate the chairs beach. Moreover, it has big umbrella among those chairs beach. For the King Size we provide; 29. Formal room 30. Formal room For room 11 st and 12 nd we provide in formal style because this two rooms we will provide to the customers who want to set their meeting or party at our Karaoke shop. The style of this two rooms is bright green and yellow color and furniture of this room will be the same as those 1o rooms but it will be more than and also adapt for the request of our customers. Service process Because of our product position is set to provide the convenience to the customer by offer the high service quality to them so we will provide our service process to be 2 parts that are as follow; 1. Before the stage For this part; the customer will be not direct touch with this process. It will be the process that we prepare for the customer when they come to experience with our service. We provide the good atmosphere for our customer such as we will clean all room for everyday and every time that the rooms are used. We not allow the customers to smoke in our shop but we still provide the place for them to smoke. 2. Behind the stage The customers will be direct experience with this part. So the main person that we have to concern in this step is our employees. For all employees that will meet with our customer we will trend all of them to be more polite and have ability to provide the thing that the customer want by fast in order to make them more satisfy with us. Moreover that we will prepare all of equipment available when the customers want for example; if the microphone is fall we will prepare it to solve this problem.

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Before the stage

Behinds the stage Meet Employees

Good atmosphere of karaoke rooms - Not allow to smoke And zoning smoke zone

Customers come to @ Home karaoke

-Trend all of employees - Prepare necessary equipments

Location Our karaoke building will be located at Chiang Mai- Lumpoon Road, Tumbon Nhong Hoi, Amphor Muang, Chiang Mai Province. There are 1,200 square metres, width 36 metres and long 33 metres. It near UFO bowling and at the in front of this lane have a lot of shops because it is the center of business in Chiang Mai, Chiang Mai 89, for example of shops at the in front of this lane are Bangkok Bank, Lotus express, Restaurant and Seven- Eleven are available. The customer can come to this place easily because it provide the good road and easy to find. Its far from Chiang Mai Airport only 10 minutes. (Reference; http://www.teedinn.com/webboard_detail.asp?wb_id=24128)

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Facility layout Facility layout

Our building has four floors that the first floor divides into three parts. The first part in the first floor consist of seating zone that has two sides, internet zone that locate nearby seating zone in the left side of building for customers to wait the empty rooms, and last zone is reception that locate the center in the first part for reservation or even payment the services and ask about some information that relate our karaoke shop. While the second part is administration part that consist of marketing department, accounting department, maintenance/technical department, and owner room. In the front of building, we have car parking for provide convenience when customers drive car to our karaoke shop. And fourth part is small sizes singing room that have 4 rooms.

46

The second floor consists of small room sizes that have 12 rooms. The rest room locates in the left hand side and opposite small room size. And medium room sizes also locate in the second floor but it has 1 room only because another medium room sizes locate in the third floor. In the second floor we have staff room for waiting customers when they have problem or order food and beverage. And behind staff room, we have preparation room for prepare food and beverage and store equipment.

47 The third floor consists of medium rooms that have 9 rooms. Also we have preparation room and rest room both of men and women room.

The top floor or fourth floor has two large singing rooms and two king sizes rooms for organize party that can hold about 20-30 person per room.

48

Equipment of S 16 rooms (per each room):
1. A Pair of Dual Channel Handheld Dynamic Wireless Microphone Brand: UHF; ENBAO Model: SG-922 Price: 3,900 Baht Reference: http://www.paisarn- outlet.com/index.php?
lay=show&ac=cat_show_pro_detail&cid=11313&pid=11224

2. A Computers with karaoke players including 22,000 songs Brand: UHF Model: Satandalone Karaoke Price: 27,900 Baht Reference: http://www.karaoke-thai.com/index.php? lay=show&ac=article&Id=538673972&Ntype=7 3. A Pair of 8 inches karaoke speakers Brand: DECCON Model: DC-K8 Price: 3,200 Baht Reference: http://www.paisarn-outlet.com/index.php? lay=show&ac=cat_showcat&l=2&cid=10863 4. Samsung LCD TVs Series 3 32 inches Brand: Samsung Model: LA32B450C4 Price: 17,900 Baht Reference: http://www.lcdtvthailand.com/spec/detail.asp?param_id=235 5. Song copyright collecting with GMM Music Publishing Limited Company Brand: GMM Music Publishing Limited Company Price: 5,000 Baht

49

Equipment of M 10 rooms (per each room):
1. A Pair of Dual Channel Handheld Dynamic Wireless Microphone Brand: UHF; ENBAO Model: SG-922 Price: 3,900 Baht Reference: http://www.paisarn- outlet.com/index.php?
lay=show&ac=cat_show_pro_detail&cid=11313&pid=11224

2. A Computers with karaoke players including 22,000 songs Brand: UHF Model: Satandalone Karaoke Price: 27,900 Baht Reference: http://www.karaoke-thai.com/index.php? lay=show&ac=article&Id=538673972&Ntype=7 3. A pair of double 15 inches karaoke speakers Brand: NTS Model: PP 15 Price: 6,500 Baht Reference: http://www.paisarn- outlet.com/index.php? lay=show&ac=cat_show_pro_detail&cid=10873&pid=59209 4. Samsung LCD TVs Series 6 46 inches Brand: Samsung Model: LA46B530P7R Price: 57,900 Baht Reference: http://www.lcdtvthailand.com/spec/detail.asp?param_id=231 5. Song copyright collecting with GMM Music Publishing Limited Company Brand: GMM Music Publishing Limited Company Price: 5,000 Baht

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Equipment of L 2 rooms (per each room):
1. A set of 4 wireless microphones Brand: LEISE Model: LS-949 Price: 6,900 Baht Reference:http://www.audiocity2u.com/index.php? lay=show&ac=cat_show_pro_detail&cid=1879&pid=47023 2. A Computers with karaoke players including 22,000 songs Brand: UHF Model: Satandalone Karaoke Price: 27,900 Baht Reference: http://www.karaoke-thai.com/index.php? lay=show&ac=article&Id=538673972&Ntype=7 3. 15 inches PA 2 speakers Brand: YAMAHA Model: A-15 Price: 14,000 Baht Reference: http://www.paisarn-outlet.com/index.php? lay=show&ac=cat_show_pro_detail&cid=10873&pid=15579 4. Electric motor screen 100 inches Brand: Vertex Model: 100” Price: 9,000 Baht Reference: http://pratimaishop.tarad.com/product.detail_164998_th_297884#

5. Data Projector 2,600 ANSI lm

51 Brand: SONY Model: VPL-EX70 Price: 39,900 Baht Reference: http://www.peak.co.th/business/projector/projector_vplex70.html 6. Song copyright collecting with GMM Music Publishing Limited Company Brand: GMM Music Publishing Limited Company Price: 5,000 Baht Equipment of King Size 2 rooms (per each room): 1. 2 sets of 4 wireless microphones Brand: LEISE Model: LS-949 Price: 6,900 Baht Reference:http://www.audiocity2u.com/index.php? lay=show&ac=cat_show_pro_detail&cid=1879&pid=47023 2. A Computers with karaoke players including 22,000 songs Brand: UHF Model: Satandalone Karaoke Price: 27,900 Baht Reference: http://www.karaoke-thai.com/index.php? lay=show&ac=article&Id=538673972&Ntype=7 3. 15 inches PA 4 speakers Brand: YAMAHA Model: A-15 Price: 56,000 Baht Reference: http://www.paisarn-outlet.com/index.php? lay=show&ac=cat_show_pro_detail&cid=10873&pid=15579

4. Electric motor screen 100 inches

52 Brand: Razr Model: 150” Price: 22,500 Baht Reference: http://pratimaishop.tarad.com/product.detail_164998_th_958875

5. Data Projector 3,000 ANSI lm Brand: SONY Model: VPL-DX11 Price: 39,900 Baht Reference: http://www.peak.co.th/business/projector/projector_vpldx11.html 6. Song copyright collecting with GMM Music Publishing Limited Company Brand: GMM Music Publishing Limited Company Price: 5,000 Baht

Other equipment: 1. Air Condition

53 Brand: Daikin Model: 1). NU - Series: FHC - Sky Air (Cassette Type) BTU 18,000 Price: 48,000/unit 15 2). NU - Series: FHC - Sky Air (Cassette Type) BTU 36,000 Price: 68,000/unit 3 3). Sky Air (TWin Cassette Type) BTU 43,600 Price: 110,000/unit 7

Reference: http://www.coolaireng.com/webpage/Allairconpages/daikin/daikin-cassette.htm 2. Computers (CPU) Brand: HP Model: Pavilion a1370L Price: 19,600 Reference:http://www.itfocusthai.com/index.php? lay=show&ac=article&Id=356707 3. LCD Monitors Brand: HP 2009f Model: FZ464AA#A2K Price: 5,339 Reference: http://rarkar.com/th/product/4000445-HP-2009f-FZ464AA Logistics Management Our business is karaoke that provide service to customers and this business can’t move service to customers but those customers who must come to our shop for use our business follow advertisement or word of mouth. So we will not concern about the logistics management.

Facility Management

54 Because we are the Karaoke service provider and we locate near the community area so we have to concern with all of stakeholder that will be affected with our business -If the building structure is not strong, the loud noise may make the building is fractured. -Too loud noise may result to other people, so we should build sound proof rooms. -Many cheap entertainment devices, such as a boom box, have karaoke mode which removing vocal voice from general audio CD that control center removal. The removing vocal can demonstrate low capability which general impact is the echo of sound track because of echo stereo. Cost of Investment Pre Operation Cost Landscape cost The company establishment permission Others Total (http://www.ktpaudit.com/service.register.html? gclid=CI_x7NSNoZ8CFYIvpAodJQ4uIw)

7,800,000 Baht 4,850 Baht 20,000 Baht 7,824,850 Baht

55

Chapter 5 Investment Cost

No. 1 2 3

List Land Building and Furniture Air Condition 1).BTU 18,000 2).BTU 36,000 3).BTU 43,600 A pair of dynamic wireless microphone A set of 4 wireless microphones Computers with karaoke players 8 inches karaoke speakers Double 15 inches karaoke speakers Double 15 inches PA speakers Samsung LCD TVs Series 3 32 inches Samsung LCD TVs Series 6 46 inches Data Projector 2,600 ANSI lm Data Projector 3,000 ANSI lm Electric motor screen 100 inches Electric motor screen 150 inches Computers (CPU) Computers LCD monitors Total

Price/Unit 35,000,000 48,000 68,000 110,000 3,900 6,900 27,900 3,200 65,000 14,000 17,900 57,900 39,900 49,900 9,000 22,500 19,600 5,339

No. of unit

Price 7,800,000 35,000,000 1,200,000 476,000 1,100,000 101,400 41,400 837,000 51,200 650,000 168,000 286,400 579,000 79,800 99,800 18,000 45,000 78,400 21,356 48,632,756

Percent 16.04% 71.97% 2.47% 0.98% 2.26% 0.21% 0.09% 1.72% 0.11% 1.34% 0.35% 0.59% 1.19% 0.16% 0.21% 0.04% 0.09% 0.16% 0.04% 100.00%

4 5 6 7 8 9 10 11 12 13 14 15 16 17

25 7 10 26 6 30 16 10 12 16 10 2 2 2 2 4 4

56

Depreciation
Investment Building Air Condition BTU 18000 Air Condition BTU 36000 Air Condition BTU 43600 Dynamic wireless microphone 4 wireless microphones Computers with karaoke players 8 inches karaoke speakers 15 inches karaoke speakers 15 inches PA speakers LCD TVs 32 inches LCD TVs 46 inches Data Projector 2,600 ANSI lm Data Projector 3,000 ANSI lm Electric motor screen 100 inches Electric motor screen 150 inches Computers (CPU) Computers LCD monitors Total Amount 35,000,000.00 1,200,000.00 476,000.00 1,100,000.00 101,400.00 41,400.00 837,000.00 51,200.00 650,000.00 168,000.00 286,400.00 579,000.00 79,800.00 99,800.00 18,000.00 45,000.00 78,400.00 21,356.00 40,832,756.00 Depreciation 20 years 5 years 5 years 5 years 5 years 5 years 5 years 5 years 5 years 5 years 5 years 5 years 5 years 5 years 5 years 5 years 3 years 3 years Annual Depreciation 1,750,000.00 240,000.00 95,200.00 220,000.00 20,280.00 8,280.00 167,400.00 10,240.00 130,000.00 33,600.00 57,280.00 115,800.00 15,960.00 19,960.00 3,600.00 9,000.00 26,133.33 7,118.67 2,929,852.00 Monthly Depreciation 145,833.33 20,000.00 7,933.33 18,333.33 1,690.00 690.00 13,950.00 853.33 10,833.33 2,800.00 4,773.33 9,650.00 1,330.00 1,663.33 300.00 750.00 2,177.78 593.22 244,154.33

Operating Cost Because of our company is provide service to the customer so we will don’t have production process. So we will don’t have raw material cost and direct labor cost. But we still have manufacturing overhead and we estimate the manufacturing overhead cost per month as follow; 1. Salary of employees - Receptionists 3 persons Cost/person 12,000 Total 36,000 baht - Accountant 2 persons 16,000 32,000 - Marketers 5 persons 20,000 100,000 - Maintenance 4 persons 7,000 28,000 - Managers 1 persons 50,000 50,000 - Staff 6 persons 7,000 42,000 - House keepers 5 persons 6,000 30,000 - Security 2 persons 6,000 12,000 2. Repair and maintenance 35,000 _________________________________________________________________ _ Total 365,000

57

Chapter 6 Risk management PEST Analysis
Political Factors Political and legal factor can build both of opportunities and threats to manage the business. The politics has any effect on the operations because of when we think to launch, we need to learn about political and legal that have certainty or not and make sure those company are established according the legal. But the political in Thailand not have certainty because of gathering in each day that send the affect to entrepreneurs. The legal is also need to learn all of legal that relate directly about karaoke business. Internal political problems also unclear and to be an important factor that can make economy of Thailand have the risk of slowing down before schedule estimated. Economic of

Thailand indicate to slow down point to a problem before the political crisis within the country. Begin from quarter 4 of 2005 by economic slowed down clearly in the part of the demand for private sector in both investment and consumption. Although the government still efforts to stimulate the economy will continue to matter.
Economic Factors Economic growth Thailand Gross Domestic Product (GDP) contracted 2.80% over the last 4 quarters. The Thailand Gross Domestic Product is worth 261 billion dollars or 0.42% of the world economy, according to the World Bank. The economy of Thailand is an emerging economy which is heavily export-dependent, with exports accounting for more than two thirds of gross domestic product (GDP). Well-developed infrastructure, a free-enterprise economy, and generally proinvestment policies, made Thailand one of East Asia's best performers. However, overall economic growth has fallen sharply in 2008 and 2009 as global downturn and persistent political crisis stalled infrastructure mega-projects, eroded investor and consumerconfidence. \

58

(http://www.tradingeconomics.com/Economics/GDP-Growth.aspx? Symbol=THB)

Interest rates

Thailand benchmark interest rate stands at 1.25 percent. In Thailand, interest rate decisions are taken by The Bank of Thailand’s Monetary Policy Committee. The main interest rate is the 1-day repurchase (http://www.tradingeconomics.com/Economics/Interest-Rate.aspx? symbol=THB)

Exchange rates

59 Thai Baht Exchange Rate Live Chart (USDTHB), quotes, historical data, forecast and news. The exchange rate between two currencies specifies how much one currency is worth in terms of the other. The spot exchange rate refers to the current exchange rate. The forward exchange rate refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date. The foreign exchange market is one of the largest markets in the world with nearly 4 trillion USD worth of currency changing hands every day. (http://www.tradingeconomics.com/Economics/Currency.aspx?Symbol=THB) Inflation rate Thailand suffers the economic recession in 2009. So power of buyers is decrease that it sends the affect to this business. Moreover the cost of business has high price due to the inflation rate are increase following Thailand inflation rate stands at 3.50 percent year-over-year. Inflation rate refers to a general rise in prices measured against a standard level of purchasing power. The most well known measures of Inflation are the CPI which measures consumer prices, and the GDP deflator, which measures inflation in the whole of the domestic economy. The economy of Thailand is an emerging economy which is heavily export-dependent, with exports accounting for more than two thirds of gross domestic product (GDP). Well-developed infrastructure, a free-enterprise economy, and generally pro-investment policies, made Thailand one of East Asia's best performers. However, overall economic growth has fallen sharply in 2008 and 2009 as global downturn and persistent political crisis stalled infrastructure mega-projects, eroded investor and consumer confidence.

(http://www.tradingeconomics.com/Economics/Inflation-CPI.aspx? symbol=THB) Overview of economic growth in Thailand indicated to slow down from the beginning at level of 7-8% per year. Remain only 4-5% per Damage resulting from the random risk of economic crisis in 1997; it is a very high value that allow the development of various financial systems have limitations were too cautious. Make savings not lending as they should. But hoard money is

60 overflowing the banks that lead to lower deposit interest rates remaining low and the conditions and the inflation rate higher real interest rates negative and the result from the strict financial system makes shopping in the growth difficult. The business lacks of equity which that can not take advantage of savings in financial institutions by loaning money. That result made business is not growing and public revenues continue. Economic development is not very balanced in both of period before or after the crisis. Internal political problems also unclear and to be an important factor that can make economy of Thailand have the risk of slowing down before schedule estimated. Economic of Thailand indicate to slow down point to a problem before the political crisis within the country. Begin from quarter 4 of 2005 by economic slowed down clearly in the part of the demand for private sector in both investment and consumption. The investment of private business in the quarter growth only 4 percent decrease, from 9.3 percent to 11.6 in the quarter 3 of year 2548 and the costs for private consumption in quarter 4 of year 2548 growth only 4.0 percent, down from 4.5 percent in 3rd quarter of the same year. This represents growth of the private sector that is the lowest in the past 3 years ago. The main reason is the inflation rate and interest rate has risen rapidly while the prices of oil still remain high and combined with the effect of price controls the business must bear the burden of higher costs as the price has been approved to adjust delay. Made to adjust prices at a later time to offset the high cost burden increased during the accumulation has not been approved to adjust the price. The slowing down of private consumption has a direct impact to the environment. The private investment particularly of business parts that rely primarily on domestic markets but the private investment to exports are not affected because exports to the criteria well. Technological Factors With the amount of high competitive in this industry that is one of all factors to occur new technology to support those competitive. Moreover most of this business is related with technology more than other business. And jukeboxes are the best examples of high technology which have important roles with this business due to they have low cost more than building karaoke rooms. The computers and LCD are another technology that we must update those technologies to support the growth of technology. Internal risk Operational risk Nowadays many of technologies are fast developed and it can effect to our company because we set our vision to be the leader in karaoke industry of Chiang Mai so we have to update our equipment follow the development in order to satisfy our customer. However; we have to spend a lot of money to buy it and it will effect to the company profit. Human resource risk The staff is very important to the company because they are the person who serve service to the customer and make the customer satisfy with our service. So if they don’t have enough knowledge to serve the high quality of service to the customer it will make them complain our company. Because of

61 these we will train to all of our employees to have more skill to serve the good service and make the customer more convenience. Marketing risk Karaoke industry is the industry that easy to launch and if some entrepreneurs can make their service better than the other it will make them can get more benefit. So we have to develop our karaoke service by improve our equipment to be better and also train the employees to have more skill in serving service. Financial risk Launching karaoke room is easy but to be the leader in this industry is very difficult because we have to have a lot of budget to manage all of the things in our company and if in the future, this situation are occurred we will loan some money from the Bank in order to decrease the responsibility of the entrepreneur. Five Force Model 1. Rivalry Among Current Competitors A survey of the market karaoke in Chiang Mai, find a karaoke business operators in the 2 groups that have direct and indirect. Direct have approximately 2 more direct and more indirect than about 20. Locations of competitive operators are not located near each other. However, a management system within karaoke has similar style of them so that enabling customers scramble competition occurs. Each karaoke has uniquely different, so depending on each customer's interest. However, these karaoke may think of new strategies that sales to competition with the combined group. Therefore, entrepreneur should develop products and services of karaoke continued to prevent any advantage of this customer base hijacked by the competition. 2. Bargaining Power of Suppliers The most various audio devices and components are made from the same source, so a supplier bargaining power over because the source of products of this type are not many but also how that can be used to reduce the bargaining power of the operators. Suppliers must purchase a lot of products to the same time that negotiate with supplier and lower wholesale prices are making cost the price down. Entrepreneur can make more profit without increasing price or other promotions to attract customers. 3. Bargaining Power of Customers Karaoke has priced near the same standard as a source of goods production and cost the same that customers will not be able to bargain because the trading price of each karaoke has a similar low price. Our karaoke advantage over competitors because they have more room to choose for customer interest and customer has brand loyalty 4. Threat of Substitute Products or Services

62 Karaoke has trend to be easy to replace because now a cabinet karaoke coin has more development and increasingly that people are focused as well as a karaoke home theater that can buy VCD karaoke singer at our favorite. Therefore, we must develop our technology for attract to return customer. 5. Threat of New Entrance Karaoke can build the competition to difficult due to high production and costs that make a little more competitive. How to prevent threats of new competition is brand building is to be up to customers to know and brand may be show a brochure distributed by the market, in the short-term customers will attract and it is generally known. New entrepreneur who want to do business, they must join the group if the group is isolated or not then that have the opportunity to sell will be less because brand has built a group is strong enough to draw customers to contribute too. One alternative is branch brand to expand karaoke that the same ownership and block to other entrepreneur to enable racing operations because karaoke is crowded already will vie for customers and reduce revenues themselves.

63

Chapter 7 Conclusion
@ Home Karaoke Company is impossible because from the calculation and analysis it can not provide a lot of profit to the investors so it should have a better management and coworker should more communication together and decrease the risk by diversify the risk to the other business that involved with this business.

64

Grant Chart
Week 1 November Week Week 2 3 Week 4 Week 1 December Week Week 2 3 Week 4 Week 1 January Week Week 2 3 Week 4

Project Explore market need Set up strategic plan Define the business opportunities Develop business plan Plan for action Identify needed and cost of resources Set standard quality of service Develop standard of service Design concept of promoting Organize advertising Launch business

65

Depreciation Year1

66

Investment Building Air Condition BTU 18000 Air Condition BTU 36000 Air Condition BTU 43600 Dynamic wireless microphone 4 wireless microphones Computers with karaoke players 8 inches karaoke speakers 15 inches karaoke speakers 15 inches PA speakers LCD TVs 32 inches LCD TVs 46 inches Data Projector 2,600 ANSI lm Data Projector 3,000 ANSI lm Electric motor screen 100 inches Electric motor screen 150 inches Computers (CPU) Computers LCD monitors Total

Amount 35,000,00 0 1,200,000 476,000 1,100,000 101,400 41,400 837,000 51,200 650,000 168,000 286,400 579,000

Jan 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00

Feb 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00

Mar 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00

Apr 2,916,666.67 100, 000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00

May 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00

June 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00

July 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00

Aug 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00

Sep 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00

Oct 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00

Nov 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00

Dec 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00

79,800

6,650.00

6,650.00

6,650.00

6,650.00

6,650.00

6,650.00

6,650.00

6,650.00

6,650.00

6,650.00

6,650.00

6,650.00

99,800

8,316.67

8,316.67

8,316.67

8,316.67

8,316.67

8,316.67

8,316.67

8,316.67

8,316.67

8,316.67

8,316.67

8,316.67

18,000

1,500.00

1,500.00

1,500.00

1,500.00

1,500.00

1,500.00

1,500.00

1,500.00

1,500.00

1,500.00

1,500.00

1,500.00

45,000 78,400 21,356 40,832,75 6

3,750.00 6,533.33 1,779.67 3,402,729.67

3,750.00 6,533.33 1,779.67 3,402,729.67

3,750.00 6,533.33 1,779.67 3,402,729.67

3,750.00 6,533.33 1,779.67 3,402,729.67

3,750.00 6,533.33 1,779.67 3,402,729.67

3,750.00 6,533.33 1,779.67 3,402,729.67

3,750.00 6,533.33 1,779.67 3,402,729.67

3,750.00 6,533.33 1,779.67 3,402,729.67

3,750.00 6,533.33 1,779.67 3,402,729.67

3,750.00 6,533.33 1,779.67 3,402,729.67

3,750.00 6,533.33 1,779.67 3,402,729.67

3,750.00 6,533.33 1,779.67 3,402,729.67

67

68

Depreciation Year2

69

Investment Building Air Condition BTU 18000 Air Condition BTU 36000 Air Condition BTU 43600 Dynamic wireless microphone 4 wireless microphones Computers with karaoke players 8 inches karaoke speakers 15 inches karaoke speakers 15 inches PA speakers LCD TVs 32 inches LCD TVs 46 inches Data Projector 2,600 ANSI lm Data Projector 3,000 ANSI lm Electric motor screen 100 inches Electric motor screen 150 inches Computers (CPU) Computers LCD monitors Total

Amount 35,000,000 1,200,000 476,000 1,100,000 101,400 41,400 837,000 51,200 650,000 168,000 286,400 579,000 79,800 99,800 18,000 45,000 78,400 21,356 40,832,756

Jan 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 6,533.33 1,779.67 3,402,729.67

Feb 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 6,533.33 1,779.67 3,402,729.67

Mar 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 6,533.33 1,779.67 3,402,729.67

Apr 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 6,533.33 1,779.67 3,402,729.67

May 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 6,533.33 1,779.67 3,402,729.67

June 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 6,533.33 1,779.67 3,402,729.67

July 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 6,533.33 1,779.67 3,402,729.67

Aug 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 6,533.33 1,779.67 3,402,729.67

Sep 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 6,533.33 1,779.67 3,402,729.67

Oct 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 6,533.33 1,779.67 3,402,729.67

Nov 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 6,533.33 1,779.67 3,402,729.67

Dec 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 6,533.33 1,779.67 3,402,729.67

70

Depreciation Year 3

71
Investment Building Air Condition BTU 18000 Air Condition BTU 36000 Air Condition BTU 43600 Dynamic wireless microphone 4 wireless microphones Computers with karaoke players 8 inches karaoke speakers 15 inches karaoke speakers 15 inches PA speakers LCD TVs 32 inches LCD TVs 46 inches Data Projector 2,600 ANSI lm Data Projector 3,000 ANSI lm Electric motor screen 100 inches Electric motor screen 150 inches Computers (CPU) Computers LCD monitors Total Amount 35,000,00 0 1,200,000 476,000 1,100,000 101,400 41,400 837,000 51,200 650,000 168,000 286,400 579,000 79,800 99,800 18,000 45,000 78,400 21,356 40,832,75 6 Jan 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 6,533.33 1,779.67 3,402,729.67 Feb 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 6,533.33 1,779.67 3,402,729.67 Mar 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 6,533.33 1,779.67 3,402,729.67 Apr 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 6,533.33 1,779.67 3,402,729.67 May 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 6,533.33 1,779.67 3,402,729.67 June 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 6,533.33 1,779.67 3,402,729.67 July 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 6,533.33 1,779.67 3,402,729.67 Aug 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 6,533.33 1,779.67 3,402,729.67 Sep 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 6,533.33 1,779.67 3,402,729.67 Oct 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 6,533.33 1,779.67 3,402,729.67 Nov 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 6,533.33 1,779.67 3,402,729.67 Dec 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 6,533.33 1,779.67 3,402,729.67

72

Depreciation Year 4

73

Investment Building Air Condition BTU 18000 Air Condition BTU 36000 Air Condition BTU 43600 Dynamic wireless microphone 4 wireless microphones Computers with karaoke players 8 inches karaoke speakers 15 inches karaoke speakers 15 inches PA speakers LCD TVs 32 inches LCD TVs 46 inches Data Projector 2,600 ANSI lm Data Projector 3,000 ANSI lm Electric motor screen 100 inches Electric motor screen 150 inches Total

Amount 35,000,000 1,200,000 476,000 1,100,000 101,400 41,400 837,000 51,200 650,000 168,000 286,400 579,000 79,800 99,800 18,000 45,000 40,733,000

Jan 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 3,394,416.67

Feb 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 3,394,416.67

Mar 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 3,394,416.67

Apr 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 3,394,416.67

May 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 3,394,416.67

June 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 3,394,416.67

July 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 3,394,416.67

Aug 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 3,394,416.67

Sep 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 3,394,416.67

Oct 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 3,394,416.67

Nov 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 3,394,416.67

Dec 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 3,394,416.67

74

Depreciation Year 5

75

Investment Building Air Condition BTU 18000 Air Condition BTU 36000 Air Condition BTU 43600 Dynamic wireless microphone 4 wireless microphones Computers with karaoke players 8 inches karaoke speakers 15 inches karaoke speakers 15 inches PA speakers LCD TVs 32 inches LCD TVs 46 inches Data Projector 2,600 ANSI lm Data Projector 3,000 ANSI lm Electric motor screen 100 inches Electric motor screen 150 inches Total

Amount 35,000,000 1,200,000 476,000 1,100,000 101,400 41,400 837,000 51,200 650,000 168,000 286,400 579,000 79,800 99,800 18,000 45,000 40,733,000

Jan 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 3,394,416.67

Feb 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 3,394,416.67

Mar 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 3,394,416.67

Apr 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 3,394,416.67

May 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 3,394,416.67

June 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 3,394,416.67

July 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 3,394,416.67

Aug 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 3,394,416.67

Sep 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 3,394,416.67

Oct 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 3,394,416.67

Nov 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 3,394,416.67

Dec 2,916,666.67 100,000.00 39,666.67 91,666.67 8,450.00 3,450.00 69,750.00 4,266.67 54,166.67 14,000.00 23,866.67 48,250.00 6,650.00 8,316.67 1,500.00 3,750.00 3,394,416.67

76

Profit/lose statement year 1
Jan Revenues Service Revenues Total Revenues Expenses Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total opening expenses Net income/loss 347,000 347,000 Feb 321,000 321,000 Mar 312,000 312,000 Apr 321,000 321,000 May 347,000 347,000 June 338,900 338,900 July 322,000 322,000 Aug 299,000 299,000 Sep 289,700 289,700 Oct 330,000 330,000 Nov 342,000 342,000 Dec 384,000 384,000

365,000 198,500 4,000 780 4,300 0 572,580 225,580

365,000 200,400 4,000 780 4,300 0 574,480 253,480

365,000 250,000 4,500 850 4,300 100 624,750 312,750

365,000 268,000 4,600 900 4,300 550 643,350 322,350

365,000 210,000 4,200 720 4,300 280 584,500 237,500

365,000 215,000 4,100 760 4,300 150 589,310 250,410

365,000 196,000 4,000 750 4,300 0 570,050 248,050

365,000 200,700 4,150 700 4,300 0 574,850 275,850

365,000 196,000 3,900 730 4,300 0 569,930 280,230

365,000 247,800 4,200 845 4,300 0 622,145 292,145

365,000 195,000 4,000 730 4,300 0 569,030 227,030

365,000 220,500 4,000 700 4,300 0 594,500 210,500

77

Profit/lose statement year2
Jan Revenues Service Revenues Total Revenues Expenses Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total opening expenses Net income/loss 347,000 347,000 Feb 321,000 321,000 Mar 312,000 312,000 Apr 321,000 321,000 May 347,000 347,000 June 338,900 338,900 July 322,000 322,000 Aug 299,000 299,000 Sep 289,700 289,700 Oct 330,000 330,000 Nov 342,000 342,000 Dec 384,000 384,000

365,000 198,500 4,000 780 4,300 0 572,580 225,580

365,000 200,400 4,000 780 4,300 0 574,480 253,480

365,000 250,000 4,500 850 4,300 100 624,750 312,750

365,000 268,000 4,600 900 4,300 550 643,350 322,350

365,000 210,000 4,200 720 4,300 280 584,500 237,500

365,000 215,000 4,100 760 4,300 150 589,310 250,410

365,000 196,000 4,000 750 4,300 0 570,050 248,050

365,000 200,700 4,150 700 4,300 0 574,850 275,850

365,000 196,000 3,900 730 4,300 0 569,930 280,230

365,000 247,800 4,200 845 4,300 0 622,145 292,145

365,000 195,000 4,000 730 4,300 0 569,030 227,030

365,000 220,500 4,000 700 4,300 0 594,500 210,500

78

Profit/lose statement year 3
Jan Revenues Service Revenues Total Revenues Expenses Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total opening expenses Net income/loss 347,000 347,000 Feb 321,000 321,000 Mar 312,000 312,000 Apr 321,000 321,000 May 347,000 347,000 June 338,900 338,900 July 322,000 322,000 Aug 299,000 299,000 Sep 289,700 289,700 Oct 330,000 330,000 Nov 342,000 342,000 Dec 384,000 384,000

365,000 198,500 4,000 780 4,300 0 572,580 225,580

365,000 200,400 4,000 780 4,300 0 574,480 253,480

365,000 250,000 4,500 850 4,300 100 624,750 312,750

365,000 268,000 4,600 900 4,300 550 643,350 322,350

365,000 210,000 4,200 720 4,300 280 584,500 237,500

365,000 215,000 4,100 760 4,300 150 589,310 250,410

365,000 196,000 4,000 750 4,300 0 570,050 248,050

365,000 200,700 4,150 700 4,300 0 574,850 275,850

365,000 196,000 3,900 730 4,300 0 569,930 280,230

365,000 247,800 4,200 845 4,300 0 622,145 292,145

365,000 195,000 4,000 730 4,300 0 569,030 227,030

365,000 220,500 4,000 700 4,300 0 594,500 210,500

79

Profit/lose statement year 4
Jan Revenues Service Revenues Total Revenues Expenses Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total opening expenses Net income/loss 773,000 773,000 Feb 776,000 776,000 Mar 732,000 732,000 Apr 841,000 841,000 May 841,000 841,000 June 831,000 831,000 July 820,000 820,000 Aug 841,000 841,000 Sep 851,000 851,000 Oct 903,200 903,200 Nov 902,000 902,000 Dec 931,000 931,000

365000 265,000 4,200 990 4,300 300 639,790 133,210

365,000 280,000 4,300 900 4,300 250 654,750 121,250

365,000 325,000 5,000 940 4,300 400 700,640 31,360

365,000 335,000 5,200 989 4,300 300 710,789 130,211

365,000 270,000 4,300 920 4,300 190 644,710 196,290

365,000 276,000 4,500 890 4,300 50 650,740 180,260

365,000 270,000 4,300 900 4,300 0 644,500 175,500

365,000 260,000 4,600 880 4,300 160 634,940 206,060

365,000 270,000 4,600 920 4,300 0 644,820 206,180

365,000 334,000 5,200 880 4,300 200 709,580 193,620

365,000 280,000 4,700 870 4,300 0 654,870 247,130

365,000 300,000 4,850 920 4,300 90 675,160 255,840

80

Profit/lose statement year 5
Jan Revenues Service Revenues Total Revenues Expenses Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total opening expenses Net income/loss 786,000 786,000 Feb 776,000 776,000 Mar 754,000 754,000 Apr 865,000 865,000 May 854,000 854,000 June 848,000 848,000 July 832,000 832,000 Aug 854,000 854,000 Sep 865,300 865,300 Oct 903,200 903,200 Nov 912,000 912,000 Dec 941,000 941,000

365000 245,000 4,400 905 4,300 0 619,605 166,395

365,000 250,000 4,500 900 4,300 600 625,300 150,700

365,000 260,000 5,000 910 4,300 300 635,510 118,490

365,000 265,000 5,200 920 4,300 300 640,720 224,280

365,000 230,000 4,000 905 4,300 750 604,955 249,045

365,000 226,000 4,150 900 4,300 700 601,050 246,950

365,000 250,000 4,200 890 4,300 340 624,730 207,270

365,000 235,000 4,400 905 4,300 500 610,105 243,895

365,000 240,000 4,200 910 4,300 400 614,810 250,490

365,000 270,000 4,000 900 4,300 770 644,970 258,230

365,000 240,000 4,100 890 4,300 0 614,290 297,710

365,000 234,000 4,050 900 4,300 450 608,700 332,300

81

Income statement of year 1

Jan

Feb

Mar

Apr

May

June

July

Aug

Sep

Oct

82

Sale in units Sale revenue Total sale Gross margin Operating Expense Operating Income Marketing expense Administration expense Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total Administrative expense Total expense EBIT Interest Interst income Tax income Net income/Loss 365,000 187,000 3,780 800 4,300 560,880 560,880 109,220 416,666.67 -307,446.67 -92,234.00 -215,212.67 365,000 188,500 3,800 780 4,300 562,380 562,380 217,620 416,666.67 -199,046.67 -59,714.00 -139,332.67 365,000 222,000 4,400 775 4,300 300 596,775 596,775 273,225 416,666.67 -143,441.67 -43,032.50 -100,409.17 365,000 224,000 4,600 700 4,300 540 599,140 599,140 347,860 416,666.67 -68,806.67 -20,642.00 -48,164.67 365,000 200,500 3,970 720 4,300 200 574,690 574,690 215,310 416,666.67 -201,356.67 -60,407.00 -140,949.67 365,000 195,000 4,020 680 4,300 110 569,110 569,110 99,890 416,666.67 -316,776.67 -95,033.00 -221,743.67 563,855 563,855 126,145 416,666.67 -290,521.67 -87,156.50 -203,365.17 365,000 190,000 3,850 705 4,300 567,260 567,260 216,740 416,666.67 -199,926.67 -59,978.00 -139,948.67 365,000 193,400 3,860 700 4,300 563,140 563,140 306,860 416,666.67 -109,806.67 -32,942.00 -76,864.67 365,000 189,400 3,760 680 4,300 670,100 780,000 870,000 947,000 790,000 669,000 690,000 784,000 870,000 670,100 670,100 670,100 780,000 780,000 780,000 870,000 870,000 870,000 947,000 947,000 947,000 790,000 790,000 790,000 669,000 669,000 669,000 690,000 690,000 690,000 784,000 784,000 784,000 870,000 870,000 870,000

960,00

960,00

960,00

960,00

365,00

224,00

4,30

68

4,30

13

598,41

598,41

361,58

416,666.6

-55,081.6

-16,524.5

-38,557.1

Income statement of year 2 Sale in units Sale revenue Total sale Gross margin Operating Expense

Jan 789,000 789,000 789,000

Feb 871,000 871,000 871,000

Mar 945,000 945,000 945,000

Apr 1,150,000 1,150,000 1,150,000

May 1,041,000 1,041,000 1,041,000

June 987,000 987,000 987,000

July 960,000 960,000 960,000

Aug 998,000 998,000 998,000

Sep 1,050,000 1,050,000 1,050,000

Oct

1,250,00

1,250,00

1,250,00

83

Operating Income Marketing expense Administration expense Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total Administrative expense Total expense EBIT Interest Interst income Tax income Net income/Loss

789,000

871,000

945,000

1,150,000

1,041,000

987,000

960,000

998,000

1,050,000

1,250,00

365,000 198,500 4,000 780 4,300 0 572,580 572,580 216,420 416,666.67 -200,246.67 -60,074.00 -140,172.67

365,000 200,400 4,000 780 4,300 0 574,480 574,480 296,520 416,666.67 -120,146.67 -36,044.00 -84,102.67

365,000 250,000 4,500 850 4,300 100 624,750 624,750 320,250 416,666.67 -96,416.67 -28,925.00 -67,491.67

365,000 268,000 4,600 900 4,300 550 643,350 643,350 506,650 416,666.67 89,983.33 26,995.00 62,988.33

365,000 210,000 4,200 720 4,300 280 584,500 584,500 456,500 416,666.67 39,833.33 11,950.00 27,883.33

365,000 215,000 4,100 760 4,300 150 589,310 589,310 397,690 416,666.67 -18,976.67 -5,693.00 -13,283.67

365,000 196,000 4,000 750 4,300 0 570,050 570,050 389,950 416,666.67 -26,716.67 -8,015.00 -18,701.67

365,000 200,700 4,150 700 4,300 0 574,850 574,850 423,150 416,666.67 6,483.33 1,945.00 4,538.33

365,000 196,000 3,900 730 4,300 0 569,930 569,930 480,070 416,666.67 63,403.33 19,021.00 44,382.33

365,00

247,80

4,20

84

4,30

622,14

622,14

627,85

416,666.6

211,188.3

63,356.5

147,831.8

Income statement of year 3 Sale in units Sale revenue Total sale Gross margin Operating Expense Operating Income Marketing expense Administration expense Salaries and wage expenses Electricity expenses

Jan 997,000 997,000 997,000 997,000

Feb 1,049,000 1,049,000 1,049,000 1,049,000

Mar 1,150,000 1,150,000 1,150,000 1,150,000

Apr 1,200,000 1,200,000 1,200,000 1,200,000

May 1,170,000 1,170,000 1,170,000 1,170,000

June 1,090,000 1,090,000 1,090,000 1,090,000

July 1,180,000 1,180,000 1,180,000 1,180,000

Aug 1,170,000 1,170,000 1,170,000 1,170,000

Sep 1,160,000 1,160,000 1,160,000 1,160,000

Oct

1,398,00

1,398,00

1,398,00

1,398,00

365,000 201,000

365,000 215,000

365,000 238,000

365,000 240,000

365,000 210,000

365,000 209,900

365,000 212,000

365,000 200,700

365,000 206,700

365,00

235,00

84

Water supply expenses Telephone Internet Repair and maintenance equipment Total Administrative expense Total expense EBIT Interest Interst income Tax income Net income/Loss

4,050 800 4,300 100 575,250 575,250 421,750 416,666.67 5,083.33 1,525.00 3,558.33

4,000 800 4,300 80 589,180 589,180 459,820 416,666.67 43,153.33 12,946.00 30,207.33

4,400 850 4,300 120 612,670 612,670 537,330 416,666.67 120,663.33 36,199.00 84,464.33

4,600 880 4,300 300 615,080 615,080 584,920 416,666.67 168,253.33 50,476.00 117,777.33

4,000 810 4,300 280 584,390 584,390 585,610 416,666.67 168,943.33 50,683.00 118,260.33

4,100 815 4,300 0 584,115 584,115 505,885 416,666.67 89,218.33 26,765.50 62,452.83

4,060 800 4,300 0 586,160 586,160 593,840 416,666.67 177,173.33 53,152.00 124,021.33

4,150 790 4,300 160 575,100 575,100 594,900 416,666.67 178,233.33 53,470.00 124,763.33

4,000 810 4,300 0 580,810 580,810 579,190 416,666.67 162,523.33 48,757.00 113,766.33

4,40

84

4,30

609,54

609,54

788,45

416,666.6

371,788.3

111,536.5

260,251.8

Income statement of year 4 Sale in units Sale revenue Total sale Gross margin Operating Expense Operating Income Marketing expense Administration expense Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total Administrative expense

Jan 1,270,000 1,270,000 1,270,000 1,270,000

Feb 1,190,000 1,190,000 1,190,000 1,190,000

Mar 1,149,000 1,149,000 1,149,000 1,149,000

Apr 1,360,000 1,360,000 1,360,000 1,360,000

May 1,360,000 1,360,000 1,360,000 1,360,000

June 1,287,000 1,287,000 1,287,000 1,287,000

July 1,179,000 1,179,000 1,179,000 1,179,000

Aug 1,197,000 1,197,000 1,197,000 1,197,000

Sep 1,269,000 1,269,000 1,269,000 1,269,000

Oct

1,579,00

1,579,00

1,579,00

1,579,00

365,000 265,000 4,200 990 4,300 300 639,790

365,000 280,000 4,300 900 4,300 250 654,750

365,000 325,000 5,000 940 4,300 400 700,640

365,000 335,000 5,200 989 4,300 300 710,789

365,000 270,000 4,300 920 4,300 190 644,710

365,000 276,000 4,500 890 4,300 50 650,740

365,000 270,000 4,300 900 4,300 0 644,500

365,000 260,000 4,600 880 4,300 160 634,940

365,000 270,000 4,600 920 4,300 0 644,820

365,00

334,00

5,20

88

4,30

20

709,58

85

Total expense EBIT Interest Interst income Tax income Net income/Loss

639,790 630,210 416,666.67 213,543.33 64,063.00 149,480.33

654,750 535,250 416,666.67 118,583.33 35,575.00 83,008.33

700,640 448,360 416,666.67 31,693.33 9,508.00 22,185.33

710,789 649,211 416,666.67 232,544.33 69,763.30 162,781.03

644,710 715,290 416,666.67 298,623.33 89,587.00 209,036.33

650,740 636,260 416,666.67 219,593.33 65,878.00 153,715.33

644,500 534,500 416,666.67 117,833.33 35,350.00 82,483.33

634,940 562,060 416,666.67 145,393.33 43,618.00 101,775.33

644,820 624,180 416,666.67 207,513.33 62,254.00 145,259.33

709,58

869,42

416,666.6

452,753.3

135,826.0

316,927.3

Income statement of year 5 Sale in units Sale revenue Total sale Gross margin Operating Expense Operating Income Marketing expense Administration expense Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total Administrative expense Total expense EBIT Interest Interst income Tax income

Jan 1,057,700 1,057,700 1,057,700 1,057,700

Feb 1,270,000 1,270,000 1,270,000 1,270,000

Mar 1,320,000 1,320,000 1,320,000 1,320,000

Apr 1,579,000 1,579,000 1,579,000 1,579,000

May 1,380,000 1,380,000 1,380,000 1,380,000

June 1,370,000 1,370,000 1,370,000 1,370,000

July 1,270,000 1,270,000 1,270,000 1,270,000

Aug 1,381,000 1,381,000 1,381,000 1,381,000

Sep 1,420,000 1,420,000 1,420,000 1,420,000

Oct

1,680,00

1,680,00

1,680,00

1,680,00

365000 245,000 4,400 905 4,300 0 619,605 619,605 438,095 416,666.67 21,428.33 6,428.50

365,000 250,000 4,500 900 4,300 600 625,300 625,300 644,700 416,666.67 228,033.33 68,410.00

365,000 260,000 5,000 910 4,300 300 635,510 635,510 684,490 416,666.67 267,823.33 80,347.00

365,000 265,000 5,200 920 4,300 300 640,720 640,720 938,280 416,666.67 521,613.33 156,484.00

365,000 230,000 4,000 905 4,300 750 604,955 604,955 775,045 416,666.67 358,378.33 107,513.50

365,000 226,000 4,150 900 4,300 700 601,050 601,050 768,950 416,666.67 352,283.33 105,685.00

365,000 250,000 4,200 890 4,300 340 624,730 624,730 645,270 416,666.67 228,603.33 68,581.00

365,000 235,000 4,400 905 4,300 500 610,105 610,105 770,895 416,666.67 354,228.33 106,268.50

365,000 240,000 4,200 910 4,300 400 614,810 614,810 805,190 416,666.67 388,523.33 116,557.00

365,00

270,00

4,00

90

4,30

77

644,97

644,97

1,035,03

416,666.6

618,363.3

185,509.0

86

Net income/Loss

14,999.83

159,623.33

187,476.33

365,129.33

250,864.83

246,598.33

160,022.33

247,959.83

271,966.33

432,854.3

Balance sheet
Balance Sheet of Year 1 Assets Current assets cash
January Febuary March April May June July August September

1,800,000

500,000

0

290,000

0

0

0

1,200,000

520,00

87

Land Other cash assets Total current assets Fixed assets Building Less: accrumulated depreciation Plant and equipment Less: accrumulated depreciation Total fixed assets Total assets Liabilities&Equity Liabilities Taxes payable Long term debt Total current liabilities Equity Owner equity Retain earning Total current equity Total current liabilities and equity

7,800,000 496,049 9,103,951.33 35,000,000 145,833.00 5,832,756 98,321 40,588,602 49,692,553.33

7,800,000 1,156,479.33 9,456,479.33 35,000,000 291,667.00 5,832,756 196,642 40,344,447 49,800,926.33

7,800,000 1,956,265.33 9,756,265.33 35,000,000 437,500.00 5,832,756 294,963 40,100,293 49,856,558.33

7,800,000 1,985,054.33 10,075,054.33 35,000,000 583,333.00 5,832,756 393,284 39,856,139 49,931,193.33

7,800,000 2,245,707.66 10,045,709.66 35,000,000 729,167.00 5,832,756 491,605 39,611,984 49,657,693.66

7,800,000 2,685,393.33 10,485,393.33 35,000,000 875,000.00 5,832,756 589,926 39,367,830 49,583,223.33

7,800,000 2,785,802.33 10,585,802.33 35,000,000 1,020,833.00 5,832,756 688,247 39,123,676 49,709,478.33

7,800,000 1,920,552.33 10,920,552.33 35,000,000 1,166,667.00 5,832,756 786,568 38,879,521 49,800,073.33

7,800,00

2,934,826.3

11,254,826.3

35,000,00

1,312,500.0

5,832,75

884,88

38,635,36

49,890,193.3

-92,234.00 50,000,000 49,907,766.00 0 -215,213 -215,213 49,692,553.33

-59,741.00 50,000,000 49,940,259.00 0 -139,333 -139,333 49,800,926.33

-43,032.50 50,000,000 49,956,967.50 0 -100,409 -100,409 49,856,558.33

-20,642.00 50,000,000 49,979,358.00 0 -48,165 -48,165 49,931,193.33

-60,407.00 50,000,000 49,939,593.00 0 -140,950 -140,950 49,657,693.66

-95,033.00 50,000,000 49,904,967.00 0 -321,744 -321,744 49,583,223.33

-87,156.50 50,000,000 49,912,843.50 0 -203,365 -203,365 49,709,478.33

-59,978.00 50,000,000 49,940,022.00 0 -139,949 -139,949 49,800,073.33

-32,942.0

50,000,00

49,967,058.0

-76,86

-76,86

49,890,193.3

Balance Sheet of Year 2 Assets Current assets cash Land Other cash assets Total current assets

January

Febuary

March

April

May

June

July

August

September

2,100,000 7,800,000 2,371,003 12,271,003

3,400,500 7,800,000 1,264,758 12,465,258

2,300,330 7,800,000 2,632,812 12,733,142

890,870 7,800,000 1,472,826 10,163,696

3,050,000 7,800,000 2,507,701 13,357,701

2,000,540 7,800,000 3,742,505 13,543,045

1,865,000 7,800,000 4,122,466.32 13,787,466.32

1,950,900 7,800,000 4,306,814 14,056,814

2,500,00

7,800,00

4,057,88

14,357,88

88

Fixed assets Building Less: accrumulated depreciation Plant and equipment Less: accrumulated depreciation Total fixed assets Total assets Liabilities&Equity Liabilities Taxes payable Long term debt Total current liabilities Equity Owner equity Retain earning Total current equity Total current liabilities and equity

35,000,000 1,895,833.00 5,832,756 1,278,173 37,658,750 49,929,753

35,000,000 2,041,667.00 5,832,756 1,376,494 37,414,595 49,879,853

35,000,000 2,187,500.00 5,832,756 1,474,815 37,170,441 49,903,583

35,000,000 2,333,333.00 5,832,756 1,573,136 36,926,287 50,089,983

35,000,000 2,479,167.00 5,832,756 1,671,457 36,682,132 50,039,833

35,000,000 2,625,000.00 5,832,756 1,769,778 36,437,978 49,981,023

35,000,000 2,770,833.00 5,832,756 1,868,099 36,193,824 49,981,290.32

35,000,000 2,916,667.00 5,832,756 1,966,420 35,949,669 50,006,483

35,000,00

3,062,500.0

5,832,75

2,064,74

35,705,51

50,063,40

-60,074 50,000,000 49,939,926 0 -10,172.67 -10,172.67 49,929,753

-36,044 50,000,000 49,963,956 0 -84,102.67 -84,102.67 49,879,853

-28,925 50,000,000 49,971,075 0 -67,491.67 -67,491.67 49,903,583

26,995 50,000,000 50,026,995 0 62,988.33 62,988.33 50,089,983

11,950 50,000,000 50,011,950 0 27,883.33 27,883.33 50,039,833

-5,693 50,000,000 49,994,307 0 -13,283.67 -13,283.67 49,981,023

-8.015 50,000,000 49999991.99 0 -18,701.67 -18,701.67 49,981,290.32

1,945 50,000,000 50,001,945 0 4,538.33 4,538.33 50,006,483

19,02

50,000,00

50,019,02

44,382.3

44,382.3

50,063,40

Balance Sheet of Year 3 Assets Current assets cash Land Other cash assets Total current assets Fixed assets Building Less: accrumulated depreciation

January

Febuary

March

April

May

June

July

August

September

2,350,400 7,800,000 5,125,785 15,276,185 35,000,000 3,645,833.00

4,050,400 7,800,000 3,708,010 15,558,410 35,000,000 3,791,667.00

0 7,800,000 10,080,074 17,880,074 35,000,000 3,937,500.00

0 7,800,000 8,371,818 16,171,818 35,000,000 4,083,333.00

3,380,700 7,800,000 5,235,963 16,416,663 35,000,000 4,229,167.00

1,257,800 7,800,000 7,523,292.33 16,581,092.33 35,000,000 4,375,000.00

3,560,800 7,800,000 5,552,401 16,913,201 35,000,000 4,520,833.00

3,900,500 7,800,000 5,457,916 17,158,416 35,000,000 4,666,667.00

7,800,00

9,586,86

17,386,86

35,000,00

4,812,500.0

89

Plant and equipment Less: accrumulated depreciation Total fixed assets Total assets Liabilities&Equity Liabilities Taxes payable Long term debt Total current liabilities Equity Owner equity Retain earning Total current equity Total current liabilities and equity

5,832,756 2,458,025 34,728,898 50,005,083

5,832,756 2,556,346 34,484,743 50,043,153

5,832,756 2,654,667 34,240,589 50,120,663

5,832,756 2,752,988 33,996,435 50,168,253

5,832,756 2,851,309 33,752,280 50,168,943

5,832,756 2,949,630 33,508,126 50,089,218.33

5,832,756 3,047,951 33,263,972 50,177,173

5,832,756 3,146,272 33,019,817 50,178,233

5,832,75

3,244,59

32,775,66

50,162,52

1,525 50,000,000 50,001,525 0 3,558.33 3,558.33 50,005,083

12,946 50,000,000 50,012,946 0 30,207.33 30,207.33 50,043,153

36,199 50,000,000 50,036,199 0 84,464.33 84,464.33 50,120,663

50,476 50,000,000 50,050,476 0 117,777.33 117,777.33 50,168,253

50,683 50,000,000 50,050,683 0 118,260.33 118,260.33 50,168,943

26,765.50 50,000,000 50,026,765.50 0 62,452.83 62,452.83 50,089,218.33

53,152 50,000,000 50,053,152 0 124,021.33 124,021.33 50,177,173

53,470 50,000,000 50,053,470 0 124,763.33 124,763.33 50,178,233

48,75

50,000,00

50,048,75

113,766.3

113,766.3

50,162,52

Balance Sheet of Year 4 Assets Current assets cash Land Other cash assets Total current assets Fixed assets Building Less: accrumulated depreciation Plant and equipment Less: accrumulated depreciation Total fixed assets

January

Febuary

March

April

May

June

July

August

September

2,054,000 7,800,000 8,557,726.33 18,411,726.33 35,000,000 5,395,833.00 5,832,756 3,635,106 31,801,817

3,490,500 7,800,000 7,267,650.33 18,558,150.33 35,000,000 5,541,667.00 5,832,756 3,730,656 31,560,433

3,005,000 7,800,000 7,907,643.33 18,712,643.33 35,000,000 5,687,500.00 5,832,756 3,826,206 31,319,050

0 7,800,000 12,354,877.33 19,154,877.33 35,000,000 5,833,333.00 5,832,756 3,921,756 31,077,667

0 7,800,000 11,662,340.33 19,462,340.33 35,000,000 5,979,167.00 5,832,756 4,017,306 30,836,283

2,509,000 7,800,000 9,315,693.33 19,624,693.33 35,000,000 6,125,000.00 5,832,756 4,112,856 30,594,900

0 7,800,000 11,964,316.33 19,764,316.33 35,000,000 6,270,833.00 5,832,756 4,208,406 30,353,517

6,500,700 7,800,000 5,732,560.33 20,033,260.33 35,000,000 6,416,667.00 5,832,756 4,303,956 30,112,133

3,400,89

7,800,00

9,135,873.3

20,336,763.3

35,000,00

6,562,500.0

5,832,75

4,399,50

29,870,75

90

Total assets Liabilities&Equity Liabilities Taxes payable Long term debt Total current liabilities Equity Owner equity Retain earning Total current equity Total current liabilities&equity

50,213,543.33

50,118,583.33

50,031,693.33

50,232,544.33

50,298,623.33

50,219,593.33

50,117,833.33

50,145,393.33

50,207,513.3

64,063.00 50,000,000 50,064,063.00 0 149,480.33 149,480.33 50,213,543.33

35,575.00 50,000,000 50,035,575.00 0 83,008.33 83,008.33 50,118,583.33

9,508.00 50,000,000 50,009,508.00 0 22,185.33 22,185.33 50,031,693.33

69,763.30 50,000,000 50,069,763.30 0 162,781.03 162,781.03 50,232,544.33

89,587.00 50,000,000 50,089,587.00 0 209,036.33 209,036.33 50,298,623.33

65,878.00 50,000,000 50,065,878.00 0 153,715.33 153,715.33 50,219,593.33

35,350.00 50,000,000 50,035,350.00 0 82,483.33 82,483.33 50,117,833.33

43,618.00 50,000,000 50,043,618.00 0 101,775.33 101,775.33 50,145,393.33

62,254.0

50,000,00

50,062,254.0

145,259.3

145,259.3

50,207,513.3

Balance Sheet of Year 5 Assets Current assets cash Land Other cash assets Total current assets Fixed assets Building Less: accrumulated depreciation Plant and equipment Less: accrumulated depreciation Total fixed assets Total assets Liabilities&Equity Liabilities

January

Febuary

March

April

May

June

July

August

September

6,630,090 7,800,000 6,686,121.33 21,116,211.33 35,000,000 7,145,833.00 5,832,756 4,781,706 28,905,217 50,021,428.33

4,700,480 7,800,000 9,063,720 21,564,200 35,000,000 7,291,667 5,832,756 4,877,256 28,663,833 50,228,033

5,010,000 7,800,000 9,035,373 21,845,373 35,000,000 7,437,500.00 5,832,756 4,972,806 28,422,450 50,267,823

2,500,500 7,800,000 12,040,046 22,340,546 35,000,000 7,583,333.00 5,832,756 5,068,356 28,181,067 50,521,613

2,560,450 7,800,000 12,058,244.33 22,418,694.33 35,000,000 7,729,166.00 5,832,756 5,163,906 27,939,684 50,358,378.33

2,040,870 7,800,000 12,813,113 22,653,983 35,000,000 7,875,000.00 5,832,756 5,259,456 27,698,300 50,352,283

1,590,000 7,800,000 13,381,686 22,771,686 35,000,000 8,020,833.00 5,832,756 5,355,006 27,456,917 50,228,603

2,450,780 7,800,000 12,881,914.33 23,132,694.33 35,000,000 8,166,666.00 5,832,756 5,450,556 27,215,534 50,348,228.33

1,700,45

7,800,00

13,913,92

23,414,37

35,000,00

8,312,500.0

5,832,75

5,546,10

26,974,15

50,388,52

91

Taxes payable Long term debt Total current liabilities Equity Owner equity Retain earning Total current equity Total current liabilities&equity

6,428.50 50,000,000 50,006,428.50 0 14,999.83 14,999.83 50,021,428.33

68,410 50,000,000 50,068,410 0 159,623.33 159,623.33 50,228,033

80,347 50,000,000 50,080,347 0 187,476.33 187,476.33 50,267,823

156,484 50,000,000 50,156,484 0 365,129.33 365,129.33 50,521,613

107,513.50 50,000,000 50,107,513.50 0 250,864.83 250,864.83 50,358,378.33

105,685 50,000,000 50,105,685 0 246,598.33 246,598.33 50,352,283

68,581 50,000,000 50,068,581 0 160,022.33 160,022.33 50,228,603

106,268.50 50,000,000 50,106,268.50 0 241,959.83 241,959.83 50,348,228.33

116,55

50,000,00

50,116,55

271,966.3

271,966.3

50,388,52

Cash Flow
Statement of cash flow Year 1 Cash flow from operating activity Cash recived on cash sale Adjust depreciation Cash paid for income tax Other cash expense Net cash flow fom Operating activity 822,020 964,440 1,071,122 1,170,512 973,747 818,121 846,998 968,176 670,100 244,154.33 -92,234.00 780,000 244,154.33 -59,714.00 870,000 244,154.33 -43,032.50 947,000 244,154.33 -20,642.00 790,000 244,154.33 -60,407.00 669,000 244,154.33 -95,033.00 690,000 244,154.33 -87,156.50 784,000 244,154.33 -59,978.00 January February March April May June July August

September

870,00

244,154.3

-32,942.0

1,081,21

92

Cash flow from selling and administrative activity Administrative expense Cash outflow from S and A activity Cash flow fom financing activity cash inflow Borroing cash Other Repayment the principle Interest payment Cashoutflow from financing activity Net cashflow from investment activity Net cash increase or decrease 50,000,000 0 0 416,666.67 416,666.67 50,416,666.67 51,382,900 0 0 0 416,666.67 416,666.67 416,666.67 964,440.33 0 0 0 416,666.67 416,666.67 416,666.67 1,667,896.83 0 0 0 416,666.67 416,666.67 416,666.67 1,769,652.33 0h Year 2 Cash flow from operating activity Cash recived on cash sale Adjust depreciation Cash paid for income tax Other cash expense Net cash flow fom Operating activity Cash flow from selling and administrative activity Administrative expense Cash outflow from S and A activity Cash flow fom financing activity cash inflow Borroing cash Other Repayment the principle Interest payment 0 0 0 416,666.67 0 0 0 416,666.67 0 0 0 416,666.67 0 0 0 416,666.67 0 0 0 416,666.67 0 0 0 416,666.67 0 0 0 416,666.67 0 0 0 416,666.67 572,580 572,580 574,480 574,480 624,750 624,750 643,350 643,350 584,500 584,500 589,310 589,310 570,050 570,050 574,850 574,850 973,080 1,079,110 1,160,229 1,421,149 1,297,104 1,225,461 1,196,139 1,244,099 789,000 244,154.33 -60,074.00 871,000 244,154.33 -36,044.00 945,000 244,154.33 -28,925.00 1,150,000 244,154.33 26,995.00 1,041,000 244,154.33 11,950.00 987,000 244,154.33 -5,693.00 960,000 244,154.33 -8,015.00 998,000 244,154.33 1,945.00 January February March April May June July August 0 0 0 416,666.67 416,666.67 416,666.67 1,548,437.33 0 0 0 416,666.67 416,666.67 416,666.67 1,387,231.33 0 0 0 416,666.67 416,666.67 416,666.67 1,410,852.83 0 0 0 416,666.67 416,666.67 416,666.67 1,535,436.33 560,880 560,880 562,380 562,380 596,775 596,775 599,140 599,140 574,690 574,690 569,110 569,110 563,855 563,855 567,260 567,260

563,14

563,14

416,666.6

416,666.6

416,666.6

1,644,352.3

September

1,050,00

244,154.3

19,021.0

1,313,17

569,93

569,93

416,666.6

93

Cashoutflow from financing activity Net cashflow from investment activity Net cash increase or decrease

416,666.67 416,666.67 1,545,660

416,666.67 416,666.67 1,079,110.33

416,666.67 416,666.67 1,784,979.33

416,666.67 416,666.67 2,064,499.33

416,666.67 416,666.67 1,881,604.33

416,666.67 416,666.67 1,814,771.33

416,666.67 416,666.67 1,766,189.33

416,666.67 416,666.67 1,818,949.33

416,666.6

416,666.6

1,883,105.3

Statement of cash flow Year3 Cash flow from operating activity Cash recived on cash sale Adjust depreciation Cash paid for income tax Other cash expense Net cash flow fom Operating activity Cash flow from selling and administrative activity Administrative expense Cash outflow from S and A activity Cash flow fom financing activity cash inflow Borroing cash Other Repayment the principle Interest payment Cashoutflow from financing activity Net cashflow from investment activity Net cash increase or decrease 0 0 0 416,666.67 416,666.67 416,666.67 1,803,559 0 0 0 416,666.67 416,666.67 416,666.67 1,306,100.33 0 0 0 416,666.67 416,666.67 416,666.67 2,027,128.33 0 0 0 416,666.67 416,666.67 416,666.67 2,093,770.33 0 0 0 416,666.67 416,666.67 416,666.67 2,039,527.33 0 0 0 416,666.67 416,666.67 416,666.67 1,930,029.83 0 0 0 416,666.67 416,666.67 416,666.67 2,041,161.33 0 0 0 416,666.67 416,666.67 416,666.67 2,034,884.33 560,880 560,880 562,380 562,380 596,775 596,775 599,140 599,140 574,690 574,690 569,110 569,110 563,855 563,855 567,260 567,260 1,242,679 1,306,100 1,430,353 1,494,630 1,464,837 1,360,920 1,477,306 1,467,624 997,000 244,154.33 1,525.00 1,049,000 244,154.33 12,946.00 1,150,000 244,154.33 36,199.00 1,200,000 244,154.33 50,476.00 1,170,000 244,154.33 50,683.00 1,090,000 244,154.33 26,765.50 1,180,000 244,154.33 53,152.00 1,170,000 244,154.33 53,470.00 January February March April May June July August

September

1,160,00

244,154.3

48,757.0

1,452,91

563,14

563,14

416,666.6

416,666.6

416,666.6

2,016,051.3

Statement of cash flow Year4 Cash flow from operating activity January February March April May June July August

September

94

Cash recived on cash sale Adjust depreciation Cash paid for income tax Other cash expense Net cash flow fom Operating activity Cash flow from selling and administrative activity Administrative expense Cash outflow from S and A activity Cash flow fom financing activity cash inflow Borroing cash Other Repayment the principle Interest payment Cashoutflow from financing activity Net cashflow from investment activity Net cash increase or decrease

1,270,000 210,902.33 64,063.00 1,544,965 639,790 639,790

1,190,000 210,902.33 35,575.00 1,436,477 654,750 654,750

1,149,000 210,902.33 9,508.00 1,369,410 700,640 700,640

1,360,000 210,902.33 69,763.30 1,640,666 710,789 710,789

1,360,000 210,902.33 89,587.00 1,660,489 644,710 644,710

1,287,000 210,902.33 65,878.00 1,563,780 650,740 650,740

1,179,000 210,902.33 35,350.00 1,425,252 644,500 644,500

1,197,000 210,902.33 43,618.00 1,451,520 634,940 634,940

1,269,00

210,902.3

62,254.0

1,542,15

644,82

644,82

0 0 0 416,666.67 416,666.67 416,666.67 2,184,755

0 0 0 416,666.67 416,666.67 416,666.67 1,436,477.33

0 0 0 416,666.67 416,666.67 416,666.67 2,070,050.33

0 0 0 416,666.67 416,666.67 416,666.67 2,351,454.63

0 0 0 416,666.67 416,666.67 416,666.67 2,305,199.33

0 0 0 416,666.67 416,666.67 416,666.67 2,214,520.33

0 0 0 416,666.67 416,666.67 416,666.67 2,069,752.33

0 0 0 416,666.67 416,666.67 416,666.67 2,086,460.33

416,666.6

416,666.6

416,666.6

2,186,976.3

Statement of cash flow Year5 Cash flow from operating activity Cash recived on cash sale Adjust depreciation Cash paid for income tax Other cash expense Net cash flow fom Operating activity Cash flow from selling and administrative activity Administrative expense Cash outflow from S and A activity 619,605 619,605 625,300 625,300 635,510 635,510 640,720 640,720 604,955 604,955 601,050 601,050 624,730 624,730 610,105 610,105 1,275,031 1,549,312 1,611,249 1,946,386 1,698,416 1,686,587 1,549,483 1,698,171 1,057,700 210,902.33 6,428.50 1,270,000 210,902.33 68,410.00 1,320,000 210,902.33 80,347.00 1,579,000 210,902.33 156,484.00 1,380,000 210,902.33 107,513.50 1,370,000 210,902.33 105,685.00 1,270,000 210,902.33 68,581.00 1,381,000 210,902.33 106,268.50 January February March April May June July August

September

1,420,00

210,902.3

116,557.0

1,747,45

614,81

614,81

95

Cash flow fom financing activity cash inflow Borroing cash Other Repayment the principle Interest payment Cashoutflow from financing activity Net cashflow from investment activity Net cash increase or decrease 0 0 0 416,666.67 416,666.67 416,666.67 2,184,755 0 0 0 416,666.67 416,666.67 416,666.67 1,549,312.33 0 0 0 416,666.67 416,666.67 416,666.67 2,246,759.33 0 0 0 416,666.67 416,666.67 416,666.67 2,587,106.33 0 0 0 416,666.67 416,666.67 416,666.67 2,303,370.83 0 0 0 416,666.67 416,666.67 416,666.67 2,287,637.33 0 0 0 416,666.67 416,666.67 416,666.67 2,174,213.33 0 0 0 416,666.67 416,666.67 416,666.67 2,308,275.83

416,666.6

416,666.6

416,666.6

2,362,269.3

Sale decrease 5%
Year 1 Lists Sale revenue Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total Expenses Revenue 9,565,645 Expenses 4,380,000 2,378,800 47,860 8,595 51,600 1,700 6,868,555 Total

96

2

3

4

Total Year 1 Sale revenue Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total Expenses Total Year 2 Sale revenue Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total Expenses Total Year 3 Sale revenue Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total Expenses Total Year 4

9,565,645 11,866,450

6,868,555 4,380,000 2,597,900 49,650 9,245 51,600 1,080 7,089,475 7,089,475 4,380,000 2,569,500 49,910 9,815 51,600 1,280 7,062,105 7,062,105 4,380,000 3,465,000 55,750 10,999 51,600 1,940 7,965,289 7,965,289

2,697,090

11,866,450 13,484,300

4,776,975

13,484,300 15,130,650

6,422,195

15,130,650

7,165,361

97

5

Sale revenue Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total Expenses Total Year 5

16,157,315 4,380,000 2,945,000 52,200 10,835 51,600 5,110 7,444,745 7,444,745

16,157,315

8,712,570

Profit of operation in 5 Years

Sale decrease 10 %
Year 1 Lists Sale revenue Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total Expenses Total Year 1 Sale revenue Salaries and wage expenses Revenue 9,062,190 Expenses 4,380,000 2,378,800 47,860 8,595 51,600 1,700 6,868,555 6,868,555 4,380,000 Total

2

9,062,190 11,241,900

2,193,635

98

3

4

5

Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total Expenses Total Year 2 Sale revenue Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total Expenses Total Year 3 Sale revenue Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total Expenses Total Year 4 Sale revenue Salaries and wage expenses Electricity expenses

2,597,900 49,650 9,245 51,600 1,080 7,089,475 7,089,475 4,380,000 2,569,500 49,910 9,815 51,600 1,280 7,062,105 7,062,105 4,380,000 3,465,000 55,750 10,999 51,600 1,940 7,965,289 7,965,289 4,380,000 2,945,000

11,241,900 12,774,600

4,152,425

12,774,600 14,334,300

5,712,495

14,334,300 15,306,930

6,369,011

99

Water supply expenses Telephone Internet Repair and maintenance equipment Total Expenses Total Year 5 Profit of operation in 5 Years

52,200 10,835 51,600 5,110 7,444,745 7,444,745

15,306,930

7,862,185 26,289,751

Sale decrease 15%
Year 1 Lists Sale revenue Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total Expenses Total Year 1 Sale revenue Salaries and wage expenses Electricity expenses Revenue 8,558,735 Expenses 4,380,000 2,378,800 47,860 8,595 51,600 1,700 6,868,555 6,868,555 4,380,000 2,597,900 Total

2

8,558,735 10,617,350

1,690,180

100

3

4

5

Water supply expenses Telephone Internet Repair and maintenance equipment Total Expenses Total Year 2 Sale revenue Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total Expenses Total Year 3 Sale revenue Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total Expenses Total Year 4 Sale revenue Salaries and wage expenses Electricity expenses Water supply expenses

49,650 9,245 51,600 1,080 7,089,475 7,089,475 4,380,000 2,569,500 49,910 9,815 51,600 1,280 7,062,105 7,062,105 4,380,000 3,465,000 55,750 10,999 51,600 1,940 7,965,289 7,965,289 4,380,000 2,945,000 52,200

10,617,350 12,064,900

3,527,875

12,064,900 13,537,950

5,002,795

13,537,950 14,456,545

5,572,661

101

Telephone Internet Repair and maintenance equipment Total Expenses Total Year 5 Profit of operation in 5 Years

10,835 51,600 5,110 7,444,745 7,444,745

14,456,545

7,011,800 22,805,311

Sale increase 5%
Year 1 Lists Sale revenue Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total Expenses Total Year 1 Sale revenue Salaries and wage expenses Electricity expenses Water supply expenses Revenue 10,572,555 Expenses 4,380,000 2,378,800 47,860 8,595 51,600 1,700 6,868,555 6,868,555 4,380,000 2,597,900 49,650 Total

2

10,572,555 13,115,550

3,704,000

102

3

4

5

Telephone Internet Repair and maintenance equipment Total Expenses Total Year 2 Sale revenue Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total Expenses Total Year 3 Sale revenue Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total Expenses Total Year 4 Sale revenue Salaries and wage expenses Electricity expenses Water supply expenses Telephone

9,245 51,600 1,080 7,089,475 7,089,475 4,380,000 2,569,500 49,910 9,815 51,600 1,280 7,062,105 7,062,105 4,380,000 3,465,000 55,750 10,999 51,600 1,940 7,965,289 7,965,289 4,380,000 2,945,000 52,200 10,835

13,115,550 14,903,700

6,026,075

14,903,700 16,723,350

7,841,595

16,723,350 17,858,085

8,758,061

103

Internet Repair and maintenance equipment Total Expenses Total Year 5 Profit of operation in 5 Years

51,600 5,110 7,444,745 7,444,745

17,858,085

10,413,340 36,743,071

Sale increase 10%
Year 1 Lists Sale revenue Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total Expenses Total Year 1 Sale revenue Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Revenue 11,076,010 Expenses 4,380,000 2,378,800 47,860 8,595 51,600 1,700 6,868,555 6,868,555 4,380,000 2,597,900 49,650 9,245 51,600 Total

2

11,076,010 13,740,100

4,207,455

104

3

4

5

Repair and maintenance equipment Total Expenses Total Year 2 Sale revenue Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total Expenses Total Year 3 Sale revenue Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total Expenses Total Year 4 Sale revenue Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance

13,740,100 15,613,400

1,080 7,089,475 7,089,475 4,380,000 2,569,500 49,910 9,815 51,600 1,280 7,062,105 7,062,105 4,380,000 3,465,000 55,750 10,999 51,600 1,940 7,965,289 7,965,289 4,380,000 2,945,000 52,200 10,835 51,600 5,110

6,650,625

15,613,400 17,519,700

8,551,295

17,519,700 18,708,470

9,554,411

105

equipment Total Expenses Total Year 5 Profit of operation in 5 Years

18,708,470

7,444,745 7,444,745

11,263,725 40,227,511

Sale increase 15%
Year 1 Lists Sale revenue Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total Expenses Total Year 1 Sale revenue Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total Expenses Revenue 11,579,465 Expenses 4,380,000 2,378,800 47,860 8,595 51,600 1,700 6,868,555 6,868,555 4,380,000 2,597,900 49,650 9,245 51,600 1,080 7,089,475 Total

2

11,579,465 14,364,650

4,710,910

106

3

4

5

Total Year 2 Sale revenue Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total Expenses Total Year 3 Sale revenue Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total Expenses Total Year 4 Sale revenue Salaries and wage expenses Electricity expenses Water supply expenses Telephone Internet Repair and maintenance equipment Total Expenses Total Year 5

14,364,650 16,323,100

7,089,475 4,380,000 2,569,500 49,910 9,815 51,600 1,280 7,062,105 7,062,105 4,380,000 3,465,000 55,750 10,999 51,600 1,940 7,965,289 7,965,289 4,380,000 2,945,000 52,200 10,835 51,600 5,110 7,444,745 7,444,745

7,275,175

16,323,100 18,316,050

9,260,995

18,316,050 19,558,855

10,350,761

19,558,855

12,114,110

107

Profit of operation in 5 Years

43,711,951

No. Name ID 1. Miss Theerada Kongthong 5031205144 2. Miss Theerarat Kongsakpakdee 5031205145 3. Miss Wilairat Thonghong 5031205176 4. Miss Sarocha Nimsuphan 5031205183 5. Miss Oranuch Todamrongrat 5031205193 6. Miss Uratchat Mavangnootoon 5031205198 7. Miss Wiwanda Poothong 5031205218 8. Miss Siraprapha Nonpayom 5031205507 FEASIBILITY STUDY & EVALUATION Business Administration School of Management Tourism Management Major Section 02

Tel. 084-3727047 083-8647820 084-6573585 082-0281406 086-9173639 084-7631162 081-2488626 084-0002464

E-mail pook_look16@hotmail.com miss-whitday@hotmail.com joizet_jungle@hotmail.com l3e_u@hotmail.com good_2050@hotmail.com ek.niti@hotmail.com Ice_4pa-yoon@hotmail.com Watz4@hotmail.com

1203302 PROJECT

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