Business Proposal for Kimberley Seats

1
RUNNING HEAD: BUSINESS PROPOSAL
Business Prospectus
Business Name
Founding Members

2
BUSINESS PROPOSAL
EXCUTIVE SUMMARY
With the depleting natural resources different ways have to be implemented in order that
things may be manufacture or produced from materials that can be found without a lot of
challenges and at affordable prices. A lot of seats have been made from timber but timber’s
availability has been dwindling and also it is expensive to purchase.
Reason for proposal
This proposal is written in order to get funding ton the capital required for this business.
The investment required includes shipping fees of the raw materials from India which through
research has proven to be affordable than other places in the world. It is also to show who we
are, what we offer and what we intend to do as we go forth into the coming years. Furthermore,
we present our business model, and show the expected sales and returns for the company and the
investors involved. We will also explain our marketing strategies geared towards getting more
customers in order to bring surplus profit every given year.
Our vision
We intend to be the lading supplier of Kimberley seats in the region at affordable prices.
Our mission
We would like to offer seats that are customer made at good prices.
Investment required
 Price of Kimberley seat: 1.1m @$497 (42kg)
Cost :
 Price of machinery and other equipment $80,000
 Scrap plastic bottles from “recycle in me scrap market place” South India @$0.3/kg
 Cost of scrap per Kimberley seat: $0.3*42kg=$12.6

3
BUSINESS PROPOSAL
 Wastage of scrap @ 5% =$0.63
 Direct expenses@ 10% of price= $49.7
 Cost of 1 Kimberley seat=62.93
 Operating profit on 1 seat before indirect expenses= $497-$62.93=$434.07
 Other expenses @ 20% of price = $99.4
 Final profit = $334.67
We are asking for $150000 investment with 20% profit sharing.
We will produce and sell 3,000 seats a year
Profit for the year before tax: 3,000* $334.67=$1,004,010
Profit sharing with investors before tax per year: 200,802.
Investors will get their money back in less than a year.
Business model
We chose a Bricks-and-clicks business model. This is to mean customers can come to the
warehouse and get the seats at their own time or they can order online. There will be production
of seats going on in the warehouse and another side will be set aside to showcase the already
done furniture.
We intend to market ourselves online since this is where a lot of people spend their time
either leisurely or doing their businesses online. Technology has made marketing online
affordable and only at the click of a mouse. We look forward to open a webpage that is going to
have all the information concerning us and all the types and prices of seats we offer.
Unit
sales
Ja
n
Fe
b
Mar
ch
Ap
ril
Ma
y
Ju
ne
Jul
y
Aug
ust
Septem
ber
Octo
ber
Novem
ber
Decem
ber
Each
at
$497
20
0
220 250 250 250 250 250 250 260 270 270 280
Total
mont
hly
$9
9,
40
0
$10
9,
340
$124
, 250
$12
4,
250
$12
4,
250
$12
4,
250
$12
4,
250
$124
, 250
$129,
220
$134,
190
$134,
190
$139,
160

4
BUSINESS PROPOSAL
We plan to start making and selling 200 monthly seats as we grow the numbers until 280
seats at the end of the year which would up to 3000 seats a year. We plan to have offers that
would increase our sales within a sort time. We will have offers such as a customer getting a
discount of 10 percent on a purchase above 15 seats.
Profits
Ja
n
Feb Marc
h
Apri
l
May June July Augu
st
Septemb
er
Octob
er
Novemb
er
Decemb
er
66
,
93
4
73,
627.
4
83,
667.
5
83,
667.
5
83,
667.
5
83,
667.
5
83,
667.
5
83,
667.5
87,
014.2
90,
360.9
90,
360.9
93,
707.6
To get such outcomes we intend to use loyalty cards and membership cards. These will
go into rewarding customers who are retailers and buy more often.
We intend to employees’ staff who will mainly major on online advertising and
marketing. Customers who feel are satisfied can be encouraged to take photos of their own
merchandise and post them on their social medias and placing a link leading to our warehouse.
This too will generate more customers.
We are located along the highway which means that transportation is not going to be a
challenge. We will use huge tracks to transport the seats to the customer’s preferred location at a
fee.