Financial Analysis of a Business

This assignment tasks students with analyzing the financial health of a business over a three-year period (Years 1-3). Students will utilize given financial statements, including a profit and loss account, to calculate key performance indicators such as gross profit margin, operating profit margin, and net profit margin. The analysis also involves examining trends in sales revenue, cost of sales, operational expenditures, and net profit.

BUSINESS PLAN
(Shareable open office, FlexiDesk)

Table of Contents
Executive summary......................................................................................................................3
Business details............................................................................................................................3
Industry and market analysis........................................................................................................5
Customers and Value Preposition..............................................................................................15
Marketing strategy.....................................................................................................................16
Operations plan..........................................................................................................................17
Management team and company structure.................................................................................18
Resources...................................................................................................................................19
Financing....................................................................................................................................21
Financial projections..................................................................................................................21
Risk and strategic options..........................................................................................................23
Key milestones...........................................................................................................................24
REFERENCES..............................................................................................................................25
APPENDICES...............................................................................................................................28
Appendix :1. Questionnaire.......................................................................................................28
Appendix: 2. Cash flow statement.............................................................................................29
Appendix: 3. Loan amortization schedule.................................................................................30
Appendix: 3. Profit and loss account.........................................................................................30

Executive summary
Planning an effective and highly-realistic business plan is critical for achieving long-term
entrepreneurial success and sustainable progress. It is regarded as the process of setting targets,
objectives and mapping out necessary plans and policies to accomplish the goals successfully. It
laid down the strategy and path of business growth to ensure stability and continuality of the
enterprise. The current business plan, “FlexiDesk” is about setting a shareable smart open office
at the central location of London, Bloomsbury. It will be established in sole proprietorship
structure whose quality standards services, competitive prices, well-furnishing arrangements
with adequate space and amenities will satisfy its target consumer, businesses, professionals,
freelancers and start-ups. It will be built with modern technology and promotion will be made
through online advertisement, TV and newspaper ads, print media and word of mouth publicity.
Business details
Shareable office space is a concept that allows corporations to share or rent their
available space or workstation to smaller companies who are looking for occupying a flexible
workspace. Shareable office space is well-furnished and well-equipped workstations that are
available for establishing branch office or new start-up also called business centers. The concept
enables entrepreneurs to occupy office at lower cost in comparison to their own premises or
traditional offices at rents (Duffy, Cave and Worthington, 2016 ). In UK, the demand of
innovative, flexible and shareable office spaces are increasing rapidly because there are number
of entities who cannot afford the cost of full office premises. It provide the opportunity for the
potential entrepreneurs to establish their own shareable redundant office space where enough
space will be provided to many entities who are keen to acquire flexible workstation (Waters-
Lynch and Potts, 2017).
The designed proposed business plan is about setting a new shareable office space named
“FlexiDesk” which will provide flexible, innovative and well-furnished office workstations to
various entities. Renter will be provided with the desk, phone, furniture, cubs and other
equipments i.e. copier, fax machine, receptionist and others for the business purpose. Under this
concept, renter will execute their work based on sharing concept where they will commonly
share conference room, kitchen and other services. It will be established at the central location of

London, Bloomsbury so as to attract maximum number of entrepreneurs who are looking for
smart open offices.

Aims and objectives
 To provide well-equipped, innovative, hi-tech openand flexible co-working office spaces
to the clients
 To ensure adequate furniture and fixture arrangements i.e. desk, chair, cubicls, phone and
other facilities for the business and professional purpose
 To provide basic amenities to the renters i.e. access to high-speed internet, conference,
board room, mail service, receptionist, health centre etc.
 To serve exceptional quality facilities like full serviced office to the businesses and
professionals at competitive rental charges
Industry and market analysis
According to the recent European Survey, in London, office occupiers are looking for
choosing their office at the best location considering three main criteria collaboration between
clients and staff, expected cost and flexibility. It gains interest of the entrepreneurs in corporate
sector to create flexible, smart and shared offices space in order to boost their productivity &

efficiency. In the country, with the technological advancement, innovation and remote work
arrangements, office space requirement of the entities are changing which directly impacts the
corporate demand in London office market (London Office Market Trend, 2017). People are
demanding office stations with open space and high-tech.
SWOT analysis
It is an internal analysis tool that helps potential entrepreneur to identify their internal
business strength which will assist them in taking benefits from the existed market opportunities.
However, on the other side, weaknesses might turn out in possible threats.
Strength
 Exceptional quality, hi-tech smart
offices
 Well-furnished with chair, desk,
cubicls, lockable storage and security
access
 Competitive charges for all
 Stunning business location
 Free of cost services i.e. breakfast,
fitness centre, gym
 Collaborative and friendly co-worker
team
Weaknesses
 Risk of default in payment due to
absence of any deposits
 High cost for building latest technology
integrated smart and flexible office
 High cost of marketing and promotion
Opportunity
 Growing demand of flexible offices in
the London office market
 Geographical expansion by opening
more shared smart office stations at
other locations of London and overseas
(Morrison and Macky, 2017)
Threats
 Stiff competition from Rentadesk, Club
Workspace, Share Desk, BE offices,
Virtual Office Group and others
 High rate of inflation in the country
 Changes in regulations and standard
provisions

Porter’s value chain model
This model consists of a set of activities that an organization performs or executes to
deliver valuable and exceptional quality of products and services to the users. It is a useful
strategic model that encourage “FlexiDesk” to change the inputs & outputs in such a manner that
will offer increased value to the final users than its original cost (Simatupang, Piboonrungroj and
Williams, 2017).
Figure 1 Porter's value chain model
(Source: Amara, Halilem and Traoré, 2016)
Primary activities: These activities are directly related to the goods and services offered by the
business enterprises and comprises below listed elements:
Inbound logistic: FlexiDesk will create contracts and agreements with the suppliers for
furniture and fixture setting, constructors and equipments vendors to build hi-tech smart open
offices. Thus, it will maintain effective relationship with the supplier and meet their
commitments timely to create value (Armstrong and et.al., 2014).
Operation: It will maintain proper arrangements of fast and reliable Wi-Fi, booking
facilities, training room, board meeting and conference rooms, telephone answering, kitchen,
health centre and well-furnished office premises to satisfy clients.

Outbound logistic: In this, client can book required office space either via online or by
visiting office physically. In order to satisfy their need, they will be provided with the great
quality of office facilities like that of full serviced office at the competitive charges without any
advance (Das and Chowdhury, 2012). Comfortable furniture in office area, meeting room,
conference, professional reception, stunning location, equipment’s and other facilities provide a
unique business experience to the clients and reduce distraction from working at home.
Marketing and sales: Online advertisement, newspaper and TV-ads, print media and
word of mouth publicity will be used for the purpose of marketing and promotional offerings to
boost sales (Hastings and Domegan, 2013).
Service: Kitchen, health centre, Wi-Fi, filtered water, equipment’s, coffee and snacks,
attractive discounts and other services also will be offered to all the businessmen, professionals
and new entrepreneurs (Amara, Halilem and Traoré, 2016).
Support activities: Such activities are essential to support primary functions, enumerated
underneath:
Procurement: FlexiDesk will find out various suppliers for furniture, equipment’s and
other resources negotiate with them for bargaining and choose the supplier with standard quality
service at affordable rates (Caplan, Dutta and Lawson, 2016).
HR management: Proposed business entity will hire competent, talented and experience
team of people for delivering great quality services to the clients (Zhang, 2017). Moreover,
training sessions will be organized and they will be motivated and rewarded for the best
performance for valuing their efforts.
Technological development: In designing FlexiDesk, latest and modern technologies
and equipment’s i.e. copier, fax machine, automatic telephone answering, Wi-Fi, air-conditioned
offices and others will be used to build a hi-tech integrated, digitalized and innovative office
(Koc and Bozdag, 2017).
Infrastructure development:In this, IT, financial management, compliance with the
legality aspects and proper accounting will be undertaken to support infrastructure development.

Analysis of market survey
Theme: 1 Majority of the surveyed people are well aware with the concept of shred offices
Number of respondents %
Yes, definitely 85 71%
Little aware 23 19%
Not at all 0 0%
120 100%
Yes, definitely
79%
Little aware
21%
Number of respondents
Findings and analysis: Survey discovered that businessman, professionals as well as
potential entrepreneurs are well-aware with the concept of shared smart open offices in the
London. In the survey, 85(79%) people said that open office provides office services including
furniture, copier, fax machines, conference room, kitchen, fitness centre and others to number of
professionals in a single roof whilst only 23(19%) said that they are little much aware about this.
The results of the findings implies that majority of the survey respondents are aware with the
concept of dynamic and flexible office arrangement in the London office market. Evidencing
this, in the UK market, office occupiers are greatly demanding the open office arrangements to
set up their offices without the need of actual ownership.
Theme: 2 People agree that shareable, flexible and virtual offices is an alternative to designing
their own offices
Number of respondents %

Yes, surely 79 66%
May or may not 41 34%
Not at all 0 0%
120 100%
Yes, surely
66%
May or may not
34%
Number of respondents
Findings and analysis: The outcome of the survey identified that 66% people feel that
flexible and smart open offices with all the services is the best alternative for the start-ups,
professionals and SMEs to establish their offices on rent without the need of designing and
constructing their own offices (Liu, Chen and Balachander, 2016).As per the results, it becomes
clear that the demand of flexible and virtual open offices is growing rapidly among businessman,
professionals, new start-ups and freelancers in UK as these are available at an affordable cost at
stunning office locations with all the necessary and required facilities like that of full-serviced
offices.
Theme: 3 less cost is the main reason that encourage office occupiers to use shred office services
Number of respondents %
Less cost 52 43%
Well-furnished office 34 28%
Reduced distraction from working at home 16 13%
Easy availability at stunning locations 10 8%
Others 8 7%
120 100%

0
20
40
60 52
34
16 10 8
Number of respondents
Number of respondents
Findings and analysis: 52(43%) respondents said that shared co-working and virtual
office services are available at less cost in comparison to constructing own office therefore, this
is the main reason behind increasing demand of shared smart open offices. However, 34(28%)
gave preference to well-furnished, 16(13%) said that reduced distraction, 10(8%) stated that it is
easy to locate office at stunning locations as they are easily available and rest 8(7%) preferred
other factors. The results demonstrate that affordable cost is the main factor that encourages
office occupiers in the country to use the facilities offered by shareable open offices. It
eliminates the need to construct their own offices and mitigate excessive cost by using the
services of smart open offices at reasonable cost.
Theme: 4 People gave first priority to affordable rent in their purchasing decision
Number of
respondents %
High technology integrated 20 17%
Adequately furnished 23 19%
Free of cost amenities 6 5%
Affordable rent 48 40%
Central location 12 10%
Friendly co-workers 8 7%
Others 3 3%
120 100%

High technology integrated
Adequately furnished
Free of cost amenities
Affordable rent
Central location
Friendly co-workers
Others
0
10
20
30
40
50
60
20 23
6
48
12 8 3
Number of respondents
Number of respondents
Findings and analysis: Affordable rent is the top priority among businesses and
professionals as 48(40%) preferred it. However, 20(17%) preferred hi-tech, 23(19%) prioritize
well furnished, 6(5%) preferred free of cost amenities, 12(10%) to the stunning location at the
centre and 8(7%) have preference to friendly co-workers who also hire office on rent. It indicates
that people are demanding flexible and open space offices at competitive charges (Lusch and
Vargo, 2014).It indicates that the affordable rent with suitable office arrangements and services
like that of full-serviced office is the top preference among office occupiers in the nation which
motivate them to demand virtual offices. However, little number of surveyed candidates had
given preference to other factors i.e. adequate furniture and fitting arrangement, friendly staff,
central location and others.
Theme: 5. Desk and working table are the top most furniture requirement among office
occupiers
Number of respondents %
Desk 115 96%
Conference table 92 77%
Work table 112 93%
File cabinet 67 56%
Lockable storage 72 60%

Desk
Conference table
Work table
File cabinet
Lockable storage
0
20
40
60
80
100
120
140
115
92
112
67 72
Number of respondents
Number of respondents
Findings and analysis: 115(96%) of the surveyed people need desk and 112(93%) need
work table in the office whereas 92(77%) people said that conference table is necessary because
they need to conduct scheduled meetings to discuss various issues. However, on the other hand,
little percentage of surveyed people to 67(56%) and 72(60%) demanded file cabinet and lockable
storage to safeguard their confidential documents. It clearly reflects that all the member need
desk and work table for carrying out their office work at the virtual offices, thus, Flexidesk has to
adequately arrange such facilities for the people. In order to attract more and more consumers, it
will have to make sure the proper arrangement of conference table, file cabinet and lockable
storage to consider the safety requirement of the confidential documents, files and other
administrative details.
Theme: 6. Air condition is the most important requirement of the businesses and professionals
Number of respondents %
Air condition 120 100%
Fitness equipments 85 71%
Photocopier 102 85%
Fax machine 78 65%
Kitchen equipments 67 56%

Others 56 47%
Air condition
Fitness equipments
Photocopier
Fax machine
Kitchen equipments
Others
0
10
20
30
40
50 46 41
35 38
28 25
Number of respondents
Number of respondents
Findings and analysis: All the surveyed people need air condition in their office thus; it
is the most important requirement of the people as in the survey 100% preferred it. Besides this,
85(71%) preferred fitness equipment’s, 102(85%) need photocopier, 78(65%) need fax machines
and 67(56%) need sufficient kitchen equipment’s in the kitchen for satisfying their need. Thus,
accordingly, it can be interpreted that FlexiDesk must design new office keeping in mind such
requirements of the people and provide them well-furnished and well-equipped smart open
offices built with high-technology. By ensuring suitable furnishing arrangements for the users,
FlexiDesk will be able to grab attention of the larger number of audiences and beat competitors
successfully by offering greater value to the office occupiers.
Theme: 7. Majority of the people said that 5 to 8 members took part in board meeting
Number of respondents %
Less than 5 13 11%
5 to 8 72 60%
9 to 12 26 22%
More than 12 9 8%
120 100%

Less than 5 5 to 8 9 to 12 More than
12
0
10
20
30
40
50
60
70
80
13
72
26
9
Number of respondents
Number of respondents
Findings and analysis: In the survey, 72(60%) people said that normally, 5 to 8 people
took participation in board meetings, however, 13(11%) said less than 5 members, 26(22%) said
9 to 12 and only 9(8%) said that more than 12 members took part in meetings. Accordingly, it
can be advised to FlexiDesk to make proper sitting arrangements for a minimum of 10
candidates in the conference and meeting room to satisfy clients. It is an average requirement of
every businessman, professional, freelancers and others which must be considered by FlexiDesk
to plan the prospective business. It will enable the business to satisfy their clients and minimize
the risk of losing customers as in case of inadequate sitting arrangements, they might look for
other smart open offices offered by the competitive firms.
Customers and Value Preposition
Target customers: All the established small and medium sized business units and
professionals will be the target customers of the proposed business plan. It is because, SMEs
have limited access to funds and they take more interest in setting their own branch in a hi-tech
flexible and open work spaces at less cost. Besides this, professionals, freelancers and potential
entrepreneurs who are looking for start-up their own establishments also will be targeted by
“FlexiDesk” because due to limited availability of funds, they are also unable to afford the cost
of full serviced office and desire to take shared offices on rent.
Value preposition: It is regarded as the process of introducing innovative features in the
products and services offered to make it highly attractive for the customers, so that, company can

attract millennial audiences and operate in the competitive landscape effectively (Gunay and et.al.,
2016). With reference to the proposed business, “FlexiDesk”, following will be the attractive
features that will encourage and motivate small and medium sized business units, professionals
and new entrepreneurs to take the benefits of offered services, presented underneath:
Why businesses, professional, freelancers and start-ups should choose “flexidesk”?
 24 hour rental services/Any-time online booking
 Adequate office space with 100+ desks, proper ventilation, lightening and air-conditioned
offices
 Fastest wired internet speed and wifi arrangements subject to our fair use policy
 Impressive business location at the central of London, Bloomsbury
 Well-equipped and well-furnished office station i.e. desk. locked storage, security access
built with hi-tech
 Access to commonly shared facilities training &conference rooms, board meeting area,
DDI telephone answering and modernised kitchen
 Professional reception area that build fantastic corporate image for your business or
profession
 Free access to filtered water, health centre (gym) and coffee & snacks
 No need to deposit advance
 Friendly staff and co-worker team
 Competitive rental charges
Marketing strategy
In today’s era, marketing plays a significant role in the success and stability of an
enterprise because it encourage and motivates people to demand the offered goods and services
which leads to increase market demand and offered business higher sales and exceeding return as
well (Miller, 2012). The marketing mix (MM) decision for the proposed business plan,
“FlexiDesk” is executed here as under:
MM Elements Marketing strategy
Product Well-furnished and equipped air conditioned office with enough space
built with hi-tech will satisfy all the business and professional clients.

Moreover, services like high-speed Wi-Fi, copier, fax machine, lockable
safe, security access, training & conference rooms, board meeting area,
telephone answering, stocked kitchen, filtered water, fitness centre
(gym) and coffee & snacks and others will be offered to all the clients.
Price All the clients will be served with great quality services like that of full
serviced office at competitive prices. Thus, pricing mechanism of the
“FlexiDesk” will be focused on cost plus affordable mark-up (40%) for
price fixation (Kleinaltenkamp, Geiger and Plinke,2015). For additional
services, clients will be charged with pay per use i.e. video
conferencing, secretarial support, increased bandwidth and additional
meeting room usage
Place Renters or office occupiers can book services by different mediums like
telephonic booking, online booking and booking by visiting physically
at the located office in Bloomsbury. Thus, with this, consumer can book
office any time with 24 hours booking services.
Promotion Online advertisement, newspaper and TV-ads, print media and word of
mouth publicity will be used for the purpose of marketing and
promotional offerings so as to generate higher sales (Hanssens and et.al.,
2014). In order to promote consumer for booking immediately, on the
first 20 bookings, they will be offered at an attractive discount of 15%.
Operations plan
Location: FlexiDesk will be established in the stunning central location of London,
Bloomsbury so that greater number of businesses, start-ups, professionals and freelancers can be
attracted and served with the great quality office services.
Service offerings: Innovative, well-equipped and well-furnished office, lockable storage,
file cabinets, kitchen, gym, training and conference room, kitchen, wired and wireless Wi-Fi,
professional reception and others (Gök and Hacioglu, 2010).
Key Partners
 Furniture
suppliers
 Equipment
Key Resources
 Adequate fund
 Human resources
 Office space
Key Activities
 24 Hour office
booking services
 Standard quality

vendors
 Construction
material
suppliers
 Furniture
 Equipment’s
services
 Marketing and
promotional
offerings
 Dealing with client
issues to satisfy
them
 Excellent facility
management
 Professional
reception area
 Risk management
Customer Segments
 Businessman
 Professionals
 Start-ups
 Freelancers
Channels
 Online and telephonic booking
 Booking via physically visiting at the
location
Customer Relationships
 Sound
relationship with
the clients and
suppliers
Cost Structure
 Capex
 Operational
expenditure
 Marketing cost
 Administrative
cost
Revenue Streams
 Rental charges
from the clients
 Additional charges
as per “pay per
use” i.e. video
conferencing,
secretarial
support, increased
bandwidth and
additional
meeting room
usage (Joyce and
Paquin, 2016)
Value Proposition
 Adequate office
space with 100+
desks
 Fastest internet
speed Wi-Fi
 Well-equipped and
well-furnished office
 Free access to
filtered water, health
centre (gym) and
coffee & snacks
 No deposit
Management team and company structure
Company structure
The virtual office business will be established in sole proprietorship structure in which,
only the founder of the business will invest required sum of capital and take whole risk and
return as well. He or she will be responsible to monitor, regulate and control the routine
functioning for getting better yield (Waters-Lynch and et.al., 2016). The benefit of this structure
is entire profit is available to the proprietor only and control is also available in his own hand,
however, at the same time, entity needs to put whole capital at a big risk.

Management team
Finance manager will be accountable to procure required quantum of funds, manage its
proper utilization and put necessary control through financial planning and governance system
for the effective financial management (Chambers and Humble, 2017).
HR manager have to recruit talented and experienced employees and train them for
maximizing competency. Besides this, employees will be motivated and rewarded for the
phenomenal and genuine efforts to ensure stability.
Marketing manager has to advertise and promote business through online ads, TV and
newspaper ads and print media for generating high consumer base (Burnett, 2015).
Facilities manager owe duty to ensure proper service arrangements for the clients in the
shareable open offices i.e. cleaning, security access, parking and others so as to make sure the
suitable surroundings (Mintz and Currim, 2013).
Resources
The planned business FlexiDesk will need following resources, mentioned hereunder:
CEO
Founde
Facilities
manager
Marketing
manager
HR
manager
Finance
Manager

Funds: Entity will need sufficient amount of fund for the CAPEX i.e. to buy
geographical location, contracts with the furniture supplier, equipment’s vendor and operational
expenditures such as payment of salary to the staff and other daily spending i.e. Wi-Fi charges,
electricity bills and others.
Office space: As the business is about setting a new shareable office business therefore,
it will need a stunning and great office location in Bloomsbury where adequate space is available
to serve maximum number of businesses, start-ups and professionals (Finch, 2016).
Furniture:In order to build well-furnished office, necessary arrangements of furnishing
like desk, chair, lockable, safes, cubs, drawer and proper furniture and fitting arrangements in the
kitchen, board meeting room, reception area and conference room needs to be done.
Equipment’s:Entrepreneur will need to purchase equipment’s such as air-condition,
coffee vending machine, microwave, copier, fax machine, refrigerator, telephone, computer, gym
equipment’s and other office supplies for developing a well-equipped and innovative work
station (Costa, Fuerst and Mendes-Da-Silva, 2016).
Human resources: FlexiDesk will need to hire a team of professionally talented and
competent workforce who are able to deliver exceptional quality services in the offices to the
clients to exceed their expectations.

Financing
FlexiDesk’s entrepreneur will fulfil its financial requirement worth 3000 GBP by
investing own savings and financial assistance from the relatives and family members as well.
Rest of the capital requirement worth 5000 GBP will be sort out by accessing required capital
from external market, borrowings from the commercial banks at chargeable interest rate of 4%
p.a.. As much as possible, entity will fulfil its financial need first through his own capital and the
remaining requirement will be managed through debt source by the way of external borrowing
from Lloyd’s bank. It will assist them to meet their capital expenditures i.e. purchase of office
building, furniture, kitchen and gym equipment’s and others. However, working capital
requirement will be satisfied by entity personal savings and business revenues.
Financial projections
Year 1 Year 2 Year 3
Average rent/month 350 357 364
Estimated booking /month 10 15 18
Expected revenue 42000 64260 78654
Discount @ 15% on first 20 bookings 1050
Sales revenue net of discount 40950 64260 78654.24
Summary of cash flow
Year 1 Year 2 Year 3
Cash inflow 40950 64260 78654
Cash outflow 37618 57277 68941

Year 1 Year 2 Year 3
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
Cash inflow and outflow
Amount (IN GBP)
Summary of profit & loss account
Year 1 year 2 Year 3
Gross profit margin 40.00% 40.00% 40.00%
Operating profit margin 37.08% 41.59% 42.84%
Net profit margin 29.66% 33.50% 34.58%
Year 1 year 2 Year 3
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
Profitability margin
Gross profit shows constant trend over the period, however, operating profit and net
profit shows a growing trend as OM and NM rose from 37.08% to 42.84% and 29.66% to
34.58% respectively. Growth in the market demand for the FlexiDesk services and controlled
cost enable firm to generate greater yield.

Assumptions:
 Selling price has been increased @ 2% considering UK inflation rate.
 Loan worth 5000 GBP has been taken for 5 year at 4% interest rate per annum will be
paid semi-annually.
 Cost of sales has been assumed 60% of sales.
 Utility payment has been increased by 5% per annum.
 Miscelleanous expense has been assumed at 5% of sales and salary and wages is expected
to increase at 7.5% p.a.
 Depreciation @ 10% has been charged on furniture and fittings on WDV method.
Calculations appended in Appendices 2
Risk and strategic options
Although shared offices is really a wonderful opportunity in London office market for the
new entrepreneurs which provides a great place to work, still there are some drawbacks which
can often come in the front of entity in effective management. There are some common issues
and risk which can be raise and can be overcome with taking necessary strategic option,
presented here as under:
Lack of control: Most of the co-working offices have pre-configured design and layout
on which there is no control of the entity (McKeever, 2016). Therefore, it becomes important for
the FlexiDesk founder to choose an appropriate office layout that perfectly caters the needs of all
the individuals.
Workplace distraction: Now-a-days, businesses, professionals, freelancers and start-ups
are demanding virtual offices so as to get rid of distraction from working at home. However, at
the open offices, there is a possibility of distraction because co-workers may desire to socialize
with each other (Spence, 2015). In order to eliminate such risk, entity must designate a proper
space that is away from the workstation where people can socialize with each other.
Difficult to define company culture: For shared office premises, it is too difficult to
define the culture of the business organization. Therefore, it seems necessary for the entrepreneur

to find a location where company values and motivational posters can be arranged (Tushar and
et.al., 2017).
Limited access to fund: Fund is the prior requirement for FlexiDesk to design smart
open office, purchase technology, equipment’s, furniture and other expenses. Thus, limited
access to funds may create issue for the business which can be eliminated by accessing fund
through external sources like commercial loans (Chadburn, Smith and Milan, 2017). Besides
this, financial planning and governance is essential to track better monitoring over funds
utilization and ensure sufficient availability of funds anytime.
Key milestones
 Excellent infrastructure
 Proper furnishing
 Central location
 Superior value to the consumer
 Quality services

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APPENDICES
Appendix :1. Questionnaire
(Kindly give responses as honest as possible, we will really appreciate your valuable beliefs and
thoughts)
Name……………
Age:…………………
Occupation: ………………………….
Q.1. Are you well aware of the concept of shared or co-working office?
 Yes, definitely
 Little aware
 Not at all
Q.2. Do you think that shared smart open offices is really a great way for the businesses and
professionals to carry out their office work?
 Yes, surely
 May or may not
 Not at all
Q.3. Which is the most important reason or factor that encourage you to demand innovative and
flexible open workstations?
 Less cost
 Well-furnished office
 Reduced distraction from working at home
 Easy availability at stunning locations
 Others
Q.4. Which will be your first priority when you decides to occupy a co-working or virtual office?
 High technology integrated
 Adequately furnished
 Free of cost amenities
 Affordable rent
 Central location

 Friendly co-workers
 Others
Q.5. Kindly tick the below mentioned furniture items that you would require in shared office?
 Desk
 Conference table
Work table
 File cabinet
 Lockable storage
Q.6. What equipments do you need in innovative and flexibleopen office premises?
 Air condition
 Fitness equipments
 Photocopier
 Fax machine
 Kitchen equipments
 Others
Q.7. In board meetings, how many people are often present including you?
 Less than 5
 5 to 8
 9 to 12
 More than 12
Appendix: 2. Cash flow statement
Pre-operating
year Year 1 year 2
Year
3
Cash inflow
Revenue 0 40950 64260 78654
Owner's capital 3000
Bank loan 5000
Total cash inflow 8000 40950 64260 78654
Cash outflow
Furniture and fittings 3000
Legal and registration charges 1000
Market research 800
Website development 2000

Working capital 600
Cost of sales 0 24570 38556 47193
Utilities 0 1200 1260 1323
Misc. Expenses 0 2047.5 3213 3933
Salaries and Wages 0 4200 4515 4854
Promotion and advertisement 600 1638 2570.4 3146
Repayment of loan 0 922 960 998
Interest payments 0 191 154 115
CAPEX 0 1000 1000
Tax payment @ 19% 0 2849 5049 6380
Total cash outflow 8000 37618 57277 68941
Net cash flow 0 3332 6983 9713
Add: Beginning cash
available 0 3332 6983
Closing balance 3332 10316 16696
Appendix: 3. Loan amortization schedule
Pmt
No.
Payment
Date
Beginni
ng
Balance
Schedule
d
Payment
Total
Paymen
t
Princip
al Interest
Ending
Balance
Cumulativ
e Interest
1 7/6/2017 5000.00 556.63 556.63 456.63 100.00 4543.37 100.00
2 1/6/2018 4543.37 556.63 556.63 465.77 90.87 4077.60 190.87
3 7/6/2018 4077.60 556.63 556.63 475.08 81.55 3602.52 272.42
4 1/6/2019 3602.52 556.63 556.63 484.58 72.05 3117.94 344.47
5 7/6/2019 3117.94 556.63 556.63 494.27 62.36 2623.67 406.83
6 1/6/2020 2623.67 556.63 556.63 504.16 52.47 2119.51 459.30
7 7/6/2020 2119.51 556.63 556.63 514.24 42.39 1605.26 501.69
8 1/6/2021 1605.26 556.63 556.63 524.53 32.11 1080.74 533.80
9 7/6/2021 1080.74 556.63 556.63 535.02 21.61 545.72 555.41
10 1/6/2022 545.72 556.63 545.72 534.80 10.91 0.00 566.33
Appendix: 3. Profit and loss account
Particulars Year 1 Year 2 Year 3
sales revenues 40950 64260 78654
Less: Cost of sales (60%) 24570 38556 47193
Gross profit 16380 25704 31462
Gross profit percentage on sales 40.00% 40.00% 40.00%
Less: Operational expenditures
Utilities 1200 1260 1323
Misc. Expenses 2048 3213 3933
Salaries and Wages 4200 4515 4854
Depreciation @ 10%on furniture and fittings 300 270 243

Promotion and marketing expense 1638 2570 3146
Operating expense 9386 11828 13499
Earnings before interest and taxes 15185 26728 33694
Operating profit margin 37.08% 41.59% 42.84%
Less: Interest 191 154 115
Earnings before tax 14994 26574 33579
Less: Tax @ 19% 2849 5049 6380
Net profit 12145 21525 27199
Net profit margin 29.66% 33.50% 34.58%