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xcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfgh
jklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasd
fghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiop
asdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyu
iopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyui
opasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwer
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nmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvb
HAPPY COFFIN AND JOINERY
nmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzx
cvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghj
klzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdf
[OWNED BY MR. KACHERE]
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sdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopa
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[Pick the date]
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[SIR.D.W. SALATIEL]
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0|Page
Mitundu F. P. School

P.O. Box 24

Mitundu

Lilongwe

Cell:
 Table of Contents

1.0 Executive Summary................................................................................................................1

Chart: Highlights....................................................................................................................1
1.1 Objectives...........................................................................................................................1
1.2 Mission................................................................................................................................2
1.3 Keys to Success.................................................................................................................2
2.0 Company Summary................................................................................................................2
2.1 Company Ownership..........................................................................................................2
2.2 Start-up Summary...............................................................................................................2
Table: Start-up.......................................................................................................................2
Table: Start-up Funding.........................................................................................................3
Chart: Start-up.......................................................................................................................4
3.0 Services..................................................................................................................................4
4.0 Market Analysis Summary......................................................................................................4
4.1 Market Segmentation..........................................................................................................5
Table: Market Analysis..........................................................................................................5
Chart: Market Analysis (Pie)..................................................................................................5
4.2 Service Business Analysis..................................................................................................5
5.0 Strategy and Implementation Summary.................................................................................6
5.1 Competitive Edge................................................................................................................6
5.2 Sales Forecast....................................................................................................................6
Table: Sales Forecast...........................................................................................................6
Chart: Sales Monthly.............................................................................................................7
Chart: Sales by Year.............................................................................................................7
6.0 Management Summary..........................................................................................................8
6.1 Personnel Plan....................................................................................................................8
Table: Personnel...................................................................................................................8
7.0 Financial Plan.........................................................................................................................9
7.0 Financial Plan.........................................................................................................................9
7.1 Break-even Analysis...........................................................................................................9
Chart: Break-even Analysis...................................................................................................9
Table: Break-even Analysis...................................................................................................9
7.2 Projected Profit and Loss..................................................................................................10
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 Table of Contents

Chart: Profit Monthly............................................................................................................10

Chart: Profit Yearly..............................................................................................................10
Chart: Gross Margin Monthly..............................................................................................11
Chart: Gross Margin Yearly.................................................................................................11
Table: Profit and Loss.........................................................................................................12
7.3 Projected Cash Flow.........................................................................................................13
Table: Cash Flow................................................................................................................13
Chart: Cash.........................................................................................................................14
7.4 Projected Balance Sheet..................................................................................................15
Table: Balance Sheet..........................................................................................................15
7.5 Business Ratios................................................................................................................16
7.5 Business Ratios................................................................................................................16
Table: Ratios.......................................................................................................................16
Table: Sales Forecast...................................................................................................................1
Table: Personnel...........................................................................................................................2
Table: Personnel...........................................................................................................................2
Table: General Assumptions........................................................................................................3
Table: General Assumptions........................................................................................................3
Table: Profit and Loss...................................................................................................................4
Table: Profit and Loss...................................................................................................................4
Table: Cash Flow..........................................................................................................................5
Table: Cash Flow..........................................................................................................................5
Table: Balance Sheet...................................................................................................................6
Table: Balance Sheet...................................................................................................................6

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 HAPPY COFFIN AND JOINERY

1.0 Executive Summary1

Happy Coffin and Joinery commenced its operations in 2010. It started in a small village
and because of slow business; it relocated to Mitundu to accommodate the high demand
for furniture and construction works taking place for many homes that needed carpentry
services. Happy Coffin and Joinery tailors solutions to customer's carpentry needs. Our
goal is to provide an end product that is unique to the customer's requirements.

Happy Coffin and Joinery provides customers with products like; coffins, tables, chairs,
stools, cabinets, sofa set, beds, construction services etc. HCJ have specialized in home
furniture and construction works that need carpentry services.

Happy Coffin and Joinery will focus on the residential construction boom in Mitundu. The
town has been growing by 10% annually for the past 10 years. With the population now at
more than 120,000, the new construction in the surrounding areas are valued at
MK350,000,000.00 per year and furniture needs have increased by 30% since 2015.

The current population of the Mitundu Town area is more than120,000 with an average
income of MK500, 000.00. Happy Coffin and Joinery is well positioned to capture a lion's
share of the carpentry business in this growing residential area. Although there many
carpentries here in Mitundu, HCJ still stands a high chance of increasing its sales and it
has maintained its quality and reasonable prices for its products. It has also planned to
open small branches in new emerging trading centers that are demanding furniture of good
quality.

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 HAPPY COFFIN AND JOINERY

Chart: Highlights

Highlights

$40000

$36000

$32000

$28000
Sales
$24000
Gross Margin
$20000
Net Profit
$160,000

$12000

$8000

$4000

$0
Year 1 Year 2 Year 3

1.1 Objectives

The objectives of Happy Coffin and Joinery are:

 Capture the majority of the carpentry business in Mitundu Town and all surrounding
areas.
 Offer our customers a superior service, at a low price.

1.2 Mission

The mission of Happy Coffin and Joinery is to become the primary resource for residential
carpentry in Mitundu.

1.3 Keys to Success

The keys to success for Happy Coffin and Joinery are:

 Customer referrals of neighbors and friends.

 Exceeding the customer's expectation for quality, timeliness and price.

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 HAPPY COFFIN AND JOINERY

 Advertise on social media and use of flyers

2.0 Business

Happy Coffin and Joinery tailors solutions to customer's expectation needs. Currently,

Happy Coffin and Joinery is a sole proprietor owned by a Malawian, Mr. Kachere. The
mission is to provide carpentry services to old and new homes in Mitundu and all
surrounding areas. This business was chosen and specifically segmented in furniture and
construction works because there is a high demand for these services as more homes are
being built by families from different parts of the countries who are settling in Mitundu.

2.1 Capital

Mr. Kachere provided the major investment in starting Happy Coffin and Joinery. Mr.
Kachere will also secure loan from Malawi Enterprises and Development Funds (MEDF), a
parastatal that aims at funding small and medium size enterprises for Malawians both in
towns and rural areas. The following table and chart show projected initial start-up costs for
Happy Coffin and Joinery.

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 HAPPY COFFIN AND JOINERY

Table: capital

Capital invested

Requirements

Capital
Stationery etc. MK90,000
Rent MK40,000
Equipment and Tools MK2,500,000
Total Expenses MK2,550,000

Assets
Cash Required MK120,000
Long-term Assets MK350,000
Total Assets MK470,000

Total Requirements MK3,020,000

Table: Start-up Funding

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 HAPPY COFFIN AND JOINERY

Chart: capital

capital

$6000

$5000

$4000

$3000

$2000

$1000

$0
Expenses Assets Investment Loans

3.0 Services

Happy Coffin and Joinery tailors solutions to customer's expectation needs. Happy Coffin
and Joinery's goal is to provide an end product that is unique to the customer's
requirements. The containers, cabinet, tables, desks, beds, chairs and TV stands can be
manufactured to fit any space. Our products can be built to specific, historical, or an
existing design theme within the customer's house, the paint or wood stain can be matched
to existing woodwork or house color schemes.

4.0 Market Analysis Summary

The town has been growing by 10% annually for the past 10 years. With the population
now at more than 10,000 households, the new construction and carpentry services in the
Town are valued at MK400 million in home sales next year alone.

New construction represents an important customer group for Happy Coffin and Joinery.
The significant customer group is comprised of the existing home owners in the Town area
and the new comers including those outside the town that purchase from Mitundu. The
rapid population growth orchestrated by rapid urbanization has positively contributed to the
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 HAPPY COFFIN AND JOINERY

increase of sales per year for carpentry services. Last year, our sales increased by 20%
and over the previous year and accounted for MK200 million paid for services in the area.

4.1 Market Segmentation

Happy Coffin and Joinery will focus on two significant customer groups:

 New home construction.

 Furniture supplying

Table: Market Analysis

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Growth CAGR
Customers
New Home 7% 2,000 2,140 2,290 2,450 2,622 7.00%
Construction
Demand for 5% 3,000 3,150 3,308 3,473 3,647 5.00%
Furniture
Total 5.82% 5,000 5,290 5,598 5,923 6,269 5.82%

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 HAPPY COFFIN AND JOINERY

Chart: Market Analysis (Pie)

Market Analysis (Pie)

New Home Construction

Demand for furniture

4.2 Service Business Analysis

The market for carpentry services is very fragmented and specialized. Among these, only a
few are competing for work in the Town area. These are small businesses with less than 3
full-time employees. Happy Coffin and Joinery's current niche is its strong relationship with
new home owners and demand for new furniture. But this will not be sufficient for growth in
a competitive market.

By focusing on these 2 services, HCJ stands a better chance of creating its competitive
advantage and serve its customers beyond their expectations. This will in the end create
customer loyalty and HCJ can use to their advantage and charge more for their services.

5.0 Strategy and Implementation

Happy Coffin and Joinery's strategy is simple and ambitious. First, build its base with new
home construction that is planned in Mitundu and surrounding areas. From this secure
footing; Mr. Kachere will begin to market his specialization skills to new customers. Happy
Coffin and Joinery is uniquely positioned to successfully market its services to new couples
in the area. New couples are the most significant customer group for carpentry services.
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 HAPPY COFFIN AND JOINERY

5.1 Competitive Edge

Mr. Kachere' reputation for quality work and excellent customer skills has been a hallmark
of his work history in construction and furniture carpentry. Starting his own company is just
another step in his quest to deliver services to customers that were second to none. It has
always been Mr. Kachere’s competitive edge that has pushed him ahead with customers
and employers. His focus on creative integrated deck schemes now places him in a unique
situation. Many of the new homes in the Town area will demand carpentry services. Joan's
history of project successes has made him a valuable resource to the area's builders and
those that demand furniture of higher quality.

COMPETITION

Direct and Indirect Competition

The direct competition for Happy Coffin and Joinery consists of one company which at the
moment is run by 2 brothers trading as Ufulu Carpentry.
 Years in Business :3 years
 Market Share :10%
 Price/Strategy :Same
 Product/Service : Same product, lower levels of client service.
 Advantages : Longer hours, greater purchasing power, variety of
products.
 Disadvantages :Distance

Happy Coffin and Joinery’s indirect competition is with 2 large carpentries as listed below;
1. Banda Carpentry
 Years in Business :5 and half years
 Market Share :10%
 Price/Strategy :Same
 Product/Service :Greater buying power and variety of products
 Advantages : Longer hours, more products, large promotional
sales and industry name.
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 HAPPY COFFIN AND JOINERY

 Disadvantage :Distance

2. Prince Carpentry
 Years in Business : 3 years
 Market Share : 10%
 Price/Strategy : Same
 Product/Service : Greater buying power and variety of products
 Advantages : Longer hours, more products, large promotional
sales, and industry name.
 Disadvantage :Distance

Operational Plan

Location and Facilities

The carpentry is located in a building that will be renovated and equipped with the necessary
furnishings, shelving, and plumbing. The approximate square footage of the unit is 700 square
feet. The unit will have 3 rooms consisting of an office, washroom, and the retail store area.
The Mitundu Township Chairperson and Council have provided their full support and verbally
agreed to support this venture.

5.2 Sales Forecast

The first three months of operation will focus on projects with new home construction.
Happy Coffin and Joinery will then turn to marketing to new customers. The following table
will outline Happy Coffin and Joinery sales forecast data.

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 HAPPY COFFIN AND JOINERY

Table: Sales Forecast

Sales Forecast
Year 1(000) Year 2(000) Year 3(000)
Sales
New Home Construction MK50,000 MK80,000 MK100,000
Furniture MK60,000 MK90,000 MK108,000
Total Sales MK110,000 MK170,000 MK208,000

Direct Cost of Sales Year 1 Year 2 Year 3

New Home Construction MK30,000 MK60,000 MK90,000
Furniture MK20,000 MK50,000 MK90,000
Subtotal Direct Cost of Sales MK50,000 MK110,000 MK180,000

Chart: Sales Monthly

Sales Monthly
$40,000
MK36,000

$32,000
$28,000

$24,000 New Home Construction

$20,000
$16,000

$12,000
$8,000

$4,000
$0
Mont h 1

Mont h 2

Mont h 3

Mont h 4

Mont h 5

Mont h 6

Mont h 7

Mont h 8

Mont h 9

Mont h 10

Mont h 11

ont h 12

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 HAPPY COFFIN AND JOINERY

6.0 Management

Happy Coffin and Joinery will be managed by Mr. Kachere. Kachere is a

talented professional who holds a certificate in carpentry he obtained while working full-time
in the construction field (carpentry department). Mr. Kachere entered the world of carpentry
in 1981 as a means to pay for his education. He quickly gained a reputation for quality and
creative work. He started his apprenticeship and early training as a carpenter soon after his
completion of his studies in 1984. He later relocated to the forecast area in 1992 and has
worked exclusively in carpentry for the past ten years.

He has worked for Banda’s carpentry and Odala’s Carpentry and has created a base of
customer support that praised his ability to handle all aspects and responsibilities of the
carpentry design and construction process.

6.1 Personnel Plan

Happy Coffin and Joinery will have a staff of four.

Table: Personnel

Personnel Plan
Year 1 Year 2 Year 3
Mr. Kachere MK300,000*12 MK340,000*12 MK420,000*12
Carpentry Staff (3)/month MK330,000*12 MK450,000*12 MK510,000*12

Total Payroll MK7,560,000 MK9,480,000 MK11,160,000

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 HAPPY COFFIN AND JOINERY

7.0 Financial Plan

The following is the financial plan for Happy Coffin and Joinery.

7.1 Break-even Analysis

The monthly break-even point is calculated in the table and chart below.

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even MK820,000

Assumptions:
Average Percent Variable Cost 28%
Estimated Monthly Fixed Cost MK750,000

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 HAPPY COFFIN AND JOINERY

7.2 Projected Profit and Loss

The following table and charts highlight the projected profit and loss for three years.

Chart: Profit Yearly

Profit Yearly

$8,000

$7,000

$6000

$5,000

$4000

$0
Year 1 Year 2 Year 3

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 HAPPY COFFIN AND JOINERY

Table: Profit and Loss

Profit and Loss (000) (000) (000)

Year 1 Year 2 Year 3
Sales MK200,000 MK270,000 MK280,000
Direct Cost of Sales MK180,000 MK130,000 MK170,000

Expenses
Payroll MK2,000 MK3,000 MK3,500
Sales and Marketing Expenses MK800 MK1,000 MK1,000
Depreciation MK200 MK400 MK4,00
Rent MK560 MK600 MK600

Total Operating Expenses MK MK MK

Net Profit MK31,400 MK40,891 MK44,041

Net Profit/Sales 10.10% 11.05% 10.29%

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 HAPPY COFFIN AND JOINERY

7.4 Projected Balance Sheet

The following is the projected balance sheet for three years.

Table: Balance Sheet

Pro Forma Balance Sheet

Year 1 Year 2 Year 3
Assets

Current Assets
Cash MK48,177 MK89,087 MK129,458
Othis Current Assets MK0 MK0 MK0
Total Current Assets MK48,177 MK89,087 MK129,458

Long-term Assets
Long-term Assets MK35,000 MK35,000 MK35,000
Accumulated Depreciation MK4,284 MK8,568 MK12,852
Total Long-term Assets MK30,716 MK26,432 MK22,148
Total Assets MK78,893 MK115,519 MK151,606

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities
Accounts Payable MK9,789 MK15,520 MK17,562
Current Borrowing MK0 MK0 MK0
Current Liabilities MK0 MK0 MK0
Subtotal Current Liabilities MK9,789 MK15,520 MK17,562

Long-term Liabilities MK40,004 MK30,008 MK20,012

Total Liabilities MK49,793 MK45,528 MK37,574

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 HAPPY COFFIN AND JOINERY

Paid-in Capital MK60,000 MK60,000 MK60,000

Retained Earnings (MK62,300) (MK30,900) MK9,991
Earnings MK31,400 MK40,891 MK44,041
Total Capital MK29,100 MK69,991 MK114,031
Total Liabilities and Capital MK78,893 MK115,519 MK151,606

Net Worth MK29,100 MK69,991 MK114,031

Page 16
 HAPPY COFFIN AND JOINERY

CONCLUSION
The Business Plan analysis leads us to the conclusion that a market and financially viable
development can be created at the site, subject to technical feasibility and subsequent refined
cost analysis. Further, the creation of an international standard leisure-led mixed-use
development as proposed in this plan has been identified to provide an attractive return on
investment.
We believe this is an exciting project for the investors behind it and an excellent complement to
the business offer of Happy Coffin and Joinery

Further Advice
Subsequent actions have been described in detail in this document. In summary however, the
next steps for the HCJ project are:
a. Progression of preparing the project and the associated studies, design, analysis
and negotiations.
b. In relation, specification of responsibilities of the master developer and legal
arrangements.
c. Invitation for a master developer to progress the project, and for co-investment with
the master developer.

The Economic Eye would be glad to assist HCJ in our areas of expertise as the project
progresses.

Page 17
 HAPPY COFFIN AND JOINERY

REFERENCES
Comprehensive Atlas for Schools; A Thematic Approach, 2017, Claim Mabuku
Destination Malawi (2019-20) [online], www.destination-malawi.mw
Malawi Population & Housing Census (2018); Preliminary Report, National Statistics Office,
Zomba-Malawi

Page 18