Entrepreneurship Assignment: 2

Section: A
Name: Registration no:
Umair Startup
TOPIC: Tariq expense Model L1F17BBAM0054

Ali butt L1F17BBAM0055

Suleman Naeem L1F17BBAM0051

Abdul Rehman L1F17BBAM0045

Awais L1F17BBAM0070
 Supervisor:
Prof. Talha Zubair
Ahmad Khan
 Business Startup Expense Sheet
Startup Expenses
Fit Tea Limited

Sources of Capital

Owners' Investment (name and percent

ownership)
Umair Tariq (50%) 25,00,000
Ali Butt (10%) 500,000
Suleman (25%) 12,50,000
Abdul Rahman (10%) 500,000
Awais (5%) 250,000
Total Owners equity 50,00,000

Bank Loans
HBL 15,00,000
Allied Bank 5,00,000
MCB 10,00,000
Total Bank Loans 30,00,000

Other Loans
Umair’s Friend 500,000
Professional motgage 15,00,000
Total Other Loans 20,00,000.

Startup Expenses

Buildings/Real Estate
Purchase 2,00,000
Construction 1,800,000
Remodeling 2,00,000
Total Buildings Expense 2,200,000

Leasehold Improvements
Electrical Wiring 20,000
Paint 60,000
Wood work 40,000
Renovation 60,000
Total Leasehold Improvements 180,000

Capital Equipment List

Furniture 300,000
Equipment 1,00,000
Fixtures 800,000
Machinery 1,100,000
Total Capital Equipment 3,280,000

Location and Admin Expenses

Rent & Related Costs -
Utility deposits 500,000
Legal and accounting fees 200,000
Prepaid insurance 100,000
Pre-opening salaries 500,000
Total Location and Admin Expenses 1,300,000

Opening Inventory
Un-Flavored clen 200,000
Thiamine 150,000
Tea bags 400,000
Flavors 100,000
Total Inventory 8,50,000

Advertising and Promotional Expenses

Advertising 300,000
Signage 50,000
Free Sampling 50,000
Brand ambassador 200,000
Total Advertising/Promotional Expenses 600,000

Other Expenses
Paper work 50,000
Refreshments 100,000
Total Other Expenses 150,000

Reserve for Contingencies 1,000,000

Working Capital 500,000

Summary Statement

Sources of Capital
Owners' and other investments 5,000,000
Bank loans 3,00,000
Other loans 1,000,000
Total Source of Capital 9,000,000

Startup Expenses
Buildings 2,200,000
Leasehold improvements 180,000
Capital equipment 3,280,000
Location/administration expenses 1,300,000
Opening inventory 850,000
Advertising/promotional expenses 600,000
Other expenses 150,000
Contingency fund 10,00,000
Working capital 500,000
Total Startup Expenses 10,000,000

Security and Collateral for Loan Proposal

Collateral for Loans Value Description

Commercial plot 40,00,000. Umair Tariq land in Lahore
Agriculture land 15,00,000 Ali land in Sahiwal

Owners
Umair Tariq
Ali butt
Suleman

Loan Guarantors (other than owners)

Umair’s Uncle
Arsal Mortgage Company