2021020

Business Plan of BUSINESS PR

Degmaya Kirana Pasal

Prepared by
Bikram Shrestha
DSM & Company
9823018448
Contents
A. Project Highlights
B. Executive summary
C. Objectives
D. Significance of Study
E. Construction of the Organization
F. Vision and Mission
G. Key To Success
H. Target Market
I. Product
J. Marketing Strategy
K. Human Resource
L. Financial Aspects
M. Conclusion and Recommendation
Financial Enclosures

▪ Cost of the Firm

▪ Balance Sheet
▪ Income and Expenditure Statement
▪ Cash Flow Statement
▪ Income Details
▪ Expenditure Details
▪ Repayment Schedule
▪ Schedule of Fixed Assets
▪ Manpower Details
▪ BEP and Profitability Analysis
▪ Details of Furniture, Equipments and Accessories
A. Project Highlights

Project : Degmaya Kirana Pasal

Registration No : 1463/077/078

Date of Registration : 2077/12/25

PAN no. : 615800949

Department : Sankharapur Municipality

Proprietors : 7

Proprietor : Degmaya Prasai (Sangraula)

Location : Kolagal, Sankharapur-07, Kathmandu

Objective : Grocery Store

B. Executive Summary

Degmaya Kirana Pasalis incorporated with the main objective of trading as retail shop. Being a
community provider, the market offers grocery products to the local community and surrounding
area of approximately 500 citizens. current sales are expected to be of Rs 7.5 lac per month.
Finance is a live blood of the business Before thinking of expansion of business we must think
about financial resources Customers are heart of our business so customer satisfaction and
delightful Our business plan includes marketing plan, operational plan, financial plan, different
strategy, and organization structure of the Kirana Pasal.

The market is seeking grant funding to assist with greater development efforts and to provide
opportunities for further growth. This funding will provide the necessary first steps for
improving and expanding the services and enhancing the markets continued success in the
community.

The firm owners have provided the capital to cover the start-up expenses. The company currently
seeks a 5-year commercial loan to cover the operating expenses.

C. Objectives
 To increase product selection and services.
 Customer satisfaction and customer delight
 Net and clean environment
 Great, friendly services
 To maintains good customer relationship.
 Sales of Rs 10 million or more in a year.

D. Significance of the study

The feasibility study herein can be useful in several ways. It can serve as basis for
its proponent in deciding as to whether or not push with its implementation. This of
course will depend on several things. One is the outlook on the marketability in its
target market. Another is the result of the profitability to be conducted on the
project.

This study can also provide solid indications as to how the project should be
managed from the point of view of the different functional areas of the business.

E. Constitution of the Firm

Degmaya Kirana Pasalis a registered under Local government sankharapur
municipality with registration number 1463/077/078 Private Firm. The Firm is also
registered in Inland Revenue Department, Jorpati having Permanent Account
Number 615800949.

S.N. Name of Proprietor Designation

1. Degmaya Prasai (Sangraula) Proprietor

The expert of the related field will manage the firm. The experts are responsible for
development and replacement of respected equipment as per direction of the
Proprietor. It is incorporated with registered capital of 5 Lakhs.

Degmaya Prasai (Sangraula), resident of Sankharapur Municipality-07,

Kathmandu has worked as Shop Keeper for more than 15 years. She is actively
engaged in different other businesses.

F. VISION AND MISSION

DEGMAYA KIRANA PASAL is committed to satisfying customers by providing a broad

selection of high quality and competitively priced products as well as exceptional customer
service. The focus of DEGMAYA KIRANA PASAL is to create an environment that is warm,
friendly, and clean. We are committed to our employees by treating them with respect, fairness
and integrity and exposing them to an atmosphere that fosters teamwork and professional
development.
The suppliers of DEGMAYA KIRANA PASAL are also partners in the success of the company
and we expect the same in return. It is our responsibility to be active stewards in our
communities and to promote local involvement.

 Customer satisfaction
 To maintain customer relationship
 To provide highest quality and at fair prices of goods

G. Key To Success
• Quality products and friendly service.
• Maintaining existing loyal customer base.
 • Creating a positive relationship within the community.

H. Target Market
 All people who live around our store are our target market.
 Although Degmaya Kirana Pasal generally focuses on family people
and women.

I. Product
 Flours, Rice, pulses, Instant Masala cooking, Edible oils
 Tea, coffee, Dry fruits, noodles, pickles, soup
 Biscuits snacks, Chocolates, Baby products, Souses jam
 Health soft drinks
 Beauty products, Oral care products, cosmetics
 Detergent bathing products, homecare, Pooja items, others

J. Marketing Strategy
For effective positioning Degmaya Kirana Pasal will provide free of cost
product sample to the customer and create need and desire for the product
We will realize our customer when our products and brands are good We will
create positive value in our customer’s minds through free of cost sample and
taste of the product. Degmaya Kirana Pasal, generally focuses on price
penetration strategy because it wants to rise customer foot fall in our store

K. Human Resource

Owner and 1 helper will be operating our firm.

L. Financial Aspects
Capital Investment
The Basic Capital investment of Degmaya Kirana Pasalis 5,00,000.
After the expansion of the store the new working capital will be raised
through the bank loan of Rs 5 lakh at the interest rate of 9%.(Government
Subsidy of 5 %)
 Steps for raising Profit.
Cost minimizing by bulk purchase of goods, Proper material handling storage
Increase in promotional marketing activities through the maintaining loyalty
of the customers, thereby increase in the sale turnover per month

The financial analysis of the project/Company shows that project is feasible and is
highly profitable during the years of its operation. We have taken certain
assumptions to complete our financial analysis part which are under mentioned.

Assumptions

The feasibility report has been prepared on the basis of the following assumptions:

1. The Income will be increased by an aggregate of 10 % per year.

2. Inflation rate is assumed to 10 % per annum on expenditure. (Inflation rate as
per NRB for current period is 9.9%)
3. Depreciation has been calculated on Written Down Value method, full
percentage of depreciation is charged whenever property, plant and equipment
is purchased
4. Interest on loan is 9 % p.a.(Government Subsidy 5%)
5. Closing inventory is assumed to be 26% of total purchase.
6. Trade receivable is assumed to be 10% to 15 % of total sales.
7. Projected financial statements are prepared on going concern basis.

Annual Operation Cost & Expenses

The annual projections of cost requirement for the operation of the project for 5
years are given in annexure.

Projected balance sheet

The projected balance sheets depict sound position of state of affairs. It shows
sufficient property, plant and equipment to run business, required working capital
to run the business.
Projected income statement

The position of profitability of company is always positive.

Projected cash flow

The cash flow of the Farm is shown in annexure. The cash flow from operating
activities is positive in all years. Impact of operating cash flow is also seen in net
cash flow.

Utilization of Proposed Loan Amount

Amount of Proposed Loan Amount 15 Lakh

Purchase plan Estimates:

Particulars Amount

Rice and Pulse 2,75,000

Biscuit and cookies 40,000.

Chocolate 35,000

Juice 50,000

Cold Drinks 30,000

Dairy Products(Ghee, Cheese, Butter, Milk Powder,cream) 110,000

Furniture 50,000

Soap and Detergent 25,000

Noodels 15,000

Stationery product 45,000

Other FMCG Product 325,000

Total 10,00,000

M. CONCLUSION

Degmaya Kirana Pasal is the need of daily life because it contains the things
which we use in our daily lives. It has much profit but only by maintaining
honesty and integrity. By keeping the high quality of products and good
relations with customers, one could achieve much from the grocery store.

Any further details of the company and me can be made available as per the
requirement of the bank I will repay the loans as per the terms and condition of
loan agreement and would follow the terms and condition of the women
entrepreneurship Loan from the bank. I hope you would consider my request
and application for the process of the loan.