Financial Statement Analysis for XYZ Company

The assignment content presents a financial statement of a company, including non-current liabilities, shareholders' equity, and cash flow statements. The non-current liabilities total to $750-$825, while the shareholders' equity amounts to $35,220-$36,525. The cash flow statements cover operating activities, investing activities, financing activities, and changes in cash. The opening cash is $0, with a net cash flow of $(150)-(1250). Closing cash ranges from $0 to $850, with a minimum balance of $0 and overdraft raised by an unknown amount.

[Company Name]: [Business Plan] 1
Business Plan
Prepared by
[Month] [Day], [Year]
Table of Contents

[Company Name]: [Business Plan] 2
I- Executive Summary..................................................................................................................................4
II- Legal Matters...........................................................................................................................................7
A. Legal Structure....................................................................................................................................7
B. License, Permits, and Insurance Policies.............................................................................................7
C. External Support..................................................................................................................................8
III- Organization Summary...........................................................................................................................9
A. Company Organizational Structure.....................................................................................................9
B. National Hiring...................................................................................................................................10
C. Founders’ Profiles..............................................................................................................................10
D. Management.....................................................................................................................................11
E. Operating Team’s Profile...................................................................................................................11
IV- Physical Location..................................................................................................................................12
V- Products/Services..................................................................................................................................14
A. Portfolio Composition.......................................................................................................................14
B. Production/Service Delivery/Operation Process...............................................................................14
C. Environmental Impact.......................................................................................................................16
VI- Market Analysis....................................................................................................................................17
A. Market Overview and Sizing..............................................................................................................17
B. Sector Trends.....................................................................................................................................17
C. Target Market Segmentation.............................................................................................................18
D. Competition......................................................................................................................................18
E. Customers..........................................................................................................................................19
F. Suppliers............................................................................................................................................20
G. Timing of Market Entry.....................................................................................................................20
VII- SWOT Analysis.....................................................................................................................................21
A. Strengths...........................................................................................................................................21
B. Weaknesses.......................................................................................................................................21
C. Opportunities....................................................................................................................................21
D. Threats..............................................................................................................................................21
VIII- Strategy..............................................................................................................................................23
A. Action Plan........................................................................................................................................23
B. Marketing Strategy............................................................................................................................23

[Company Name]: [Business Plan] 3
C. Sales Strategy....................................................................................................................................24
D. Pricing Strategy.................................................................................................................................25
IX- Financial Plan........................................................................................................................................27
A. Funding Requirements......................................................................................................................27
B. Financial information.........................................................................................................................27
References.................................................................................................................................................29
Financial Statements.................................................................................................................................30
A. Income Statement.............................................................................................................................30
B. Balance Sheet....................................................................................................................................31
C. Cash Flow Statement.........................................................................................................................33

[Company Name] 4
I- Executive Summary
The executive summary represents the pitch for your business plan in brief. We
recommend you only complete this section after preparing your full business plan.
[Paragraph 1: Introduction]
Briefly describe the company. Include the
i- Business name
ii- Legal structure
iii- Status and key dates: Existing (establishment date, date of latest financial statements)
or New (pre-operation start date, pre-operation period, and operations start date)
iv- Industry (Agriculture, Industrial, Services, Commercial, Craftsman)
v- Main operations/products/services and the needs fulfilled
vi- Location
--------The name of the company is Sure Consultancy Services. It is a limited liability partnership
firm. The company will commence its services from September 2019. The pre-operation
activities have bee started from June 2019.
The company will operate in service sector. It will provide solutions to the complex projects
faced by the customers.
The organization will be located in an official building. All the operations will be conducted
from the building.
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[Paragraph 2: Mission]
In one sentence, state the mission of the company
The mission of the company is to provide quality consultancy services for long term relationship
with customers.
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[Paragraph 3: Vision]
In one sentence, state the vision of the company
-----The vision of the company is to become of the successful organization which has capability
to deliver value to its

[Company Name] 5
customers.-------------------------------------------------------------------------------------------------------
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[Paragraph 4: Strategy]
Briefly discuss the:
i- Sales and marketing strategy
ii- Pricing strategy
iii- Strategic partnerships you have/intend to have
iv- Readiness of products (idea, prototypes, ready for sale) or clients
secured/potential, whichever is applicable
----Sales and marketing strategy- The sales and marketing strategy followed by the company will
include personal selling. In this manner it will be possible to make positive relationship with the
target customers.
Pricing strategy- The company will adopt marginal pricing strategy which will help the
company deal with the level of competition in the market.
Strategic partnerships- The company will engage in strategic partnerships with other
consultancy organizations in order to provide effective services to the customers.
Readiness of the products- The services will be highly customized and will include all the
features as demanded by the
customer.--------------------------------------------------------------------------------------------------------
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[Paragraph 5: Market Analysis]
Briefly discuss the:
i- Targeted market customers: characteristics, needs, trends
ii- Competitive advantage/key to success
iii- Risks facing the business and how you can mitigate them
---Targeted market customers: The target market will include the customers who face complex
projects involving knowledge of more than one field. It requires expertise views to reach to the
outcome of the project.
-----------------------------------------------------------------------------------------Competitive
advantage- The competitive advantage will be developed by the company by providing quality
services at affordable prices.
Risks facing the business and how to mitigate them- There will be a range of materials risks
facing the company like the sustainability risks, financial risks, environment risks, etc. These will
be managed through a risk management framework which will identify and assess the
risks.--------------------------------------------------------------------------------------------------------------
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[Company Name] 6
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[Paragraph 6: Financial Performance]
Discuss the financial status of the business by commenting on how the company performed in
the last 3 years (or less), if the company is existing, and the outlook for the next 5 years
(growth of sales, net profit, and assets, margin/return trends)
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[Paragraph 7: Funding Required]
Include:
i- Required amount of funding and land area and location, if needed
ii- Reasons behind the required funding
-----Required amount of funding- The funding required in order to start this business include,
500,000 KWD. An official building will also be needed where the experts will work on the
projects of the customers.
This level of funding is required to successfully complete all the activities and provide adequate
resources for the achievement of the
goals.-------------------------------------------------------------------------------------------------------------
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[Paragraph 8: Team]
i. Founders’ relative experience
ii. Total number of employees (current and potential)
iii. Number of Kuwaiti employees (current and potential)
The experience of the founder member will play a significant role in the success of the
organization. –
The total number of current employees is a 50members. This level is expected to rise as the
company grow.
The number of Kuwaiti employee is 35 members.
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[Company Name] 7
[Paragraph 9: Business Plan Preparation]
i. Identify the type of support received in preparing the business plan (feasibility study
expert, friends, technical experts….). Name the company providing support, if
applicable.
------In preparation of the business plan, support has been gained from friends and experts.
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[Company Name] 8
II- Legal Matters
A. Legal Structure
i- Identify whether the business will be set up as a limited liability company, shareholding
company, joint venture…
------------------------------------------The business will be set as a limited liability company where
each of the partners will be have limited liability according to their ownership in the
organization.---------------------------------------------------------------------------
ii- Explain the reason behind your choice
---------The limited liability organization will attract more number of partners and owners for
the investment in the
company.---------------------------------------------------------------------------------------------------------
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B. License, Permits, and Insurance Policies
i- Specify the types of licenses, permits, and certifications required to operate the
business
------There are a number of license, permits and certifications which are required to operate
business in India. The company need certificate of incorporation and certificate of
commencement to start their operations in India. Apart from this, GST Registration No is
required if the level of turnover is more than 20 Lakhs.
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ii- Would it be difficult to obtain any of the above? If yes, what is the impact on the
business and operations?
-----The procedure for obtaining the license and certificates need submission of relevant
documents, and applying to the respective authorities. These process of application and
verification by the officials may take some time and therefore it’s advisable that ensure that all
the formalities are duly fulfilled.
In situations when the license and certificates are not obtained on time, it may affect the
operations and conduct of the business. The time for starting the operations may get delayed and
it may impact the future prospects of the
organization.----------------------------------------------------------------------------------------------------
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[Company Name] 9
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iii- Are there any restrictions on the use of the property in your area (e.g. zoning laws,
industrial project in a non-industrial area…) and on the operations of the business
--------There are some regulations regarding the use of property in the area which may impact
the operations of the business. There are restrictions related with the construction of the
property which should be maintained at low height matching the neighborhood. There are
certain areas or spaces which can be used a commercial property and can be used for
conducting
business.---------------------------------------------------------------------------------------------------------
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iv- Identify if you currently or potentially should enjoy intellectual property protection
through trademark, copyright, and patents
---------Currently our business do not possess any intellectual property, protections or the
trademarks. It’s an academic and professional service organization which is dependent on the
quality and efficiency of the services provided to the customers.
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v- Elaborate on the insurance policies you have/should have to support your business and
estimate the corresponding cost
-------The small business enterprises need General Liability and Property Insurance in order to
operate successfully. As the company grows and the number of employee increase, Worker’s
Compensation Insurance is also needed to be taken.
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[Company Name] 10
C. External Support
i- Identify the key advisors (financial, strategic, legal, insurance agents, advisory board..)
for the business, the type of support they will offer, and the corresponding
compensation (financial or non-financial)
---Some of the key advisors in the development of the business include the following:
Auditors and finance experts will support the financial operations of the company. There will be
a number of activities which include taking loans from banks, and allocating them to the
respective activities. The process of creation of the budgets and financial statements will be
completed by them. They need to be employed through financial compensation.
Insurance agent will support the insurance process of the company. They will determine the
appropriate insurance according to the need of the company. They will provide such service in
exchange of financial compensation.
Advisory board and committees will support the organization through planning for the future
operations of the organization. They will suggest methods through which company can build
capacity to emerge as successful venture. These committees and the board members will form a
part of the executive team. They need to be compensated through financial and non-financial
compensations like ownership in the company, Shares of the company, etc.
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[Company Name] 11
III- Organization Summary
A. Company Organizational Structure
i- Include all the employees you will hire over the next 5 years. Provide the relevant
organizational structure that matches your company
ii- Will the compensation packages (salaries + benefits) to be offered for Kuwaitis and
non-Kuwaitis be higher or lower than market average? Explain the reason behind
offering higher/lower salaries, if it is the case
-----The compensation packages for Kuwaitis and non-Kuwaitis will be different. When we
attract talent from another country, we would offer a higher compensation package. The people
setting from another country need extra incentive to stay and work in a foreign land. They will
also be provided with non-financial benefits which will motivate them to meet the objectives of
the organization.
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Mr Khan
Mr Lincoln
Management Executive
Name
Position
Name
Position
Mr Khalid
Management Executive
Name
Position
Name
Position
Mr Jinal
Management Executive
Name
Position
Name
Position
Name
Position
Mr
Kumaran
Mr
Abraham

[Company Name] 12
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iii- What is your plan to hire the above employees?
---The success of an organization is highly dependent on the talent and capability of its
employees. Thus in order to attract the right talent, the company will use a strategic plan. We
would attract the employees from national and international domain to hire the suitable
candidate for the position. The openings will be available through our website in which the
applicants can directly register themselves. Based on the appropriate match, the candidates will
be contacted to join the
organization.----------------------------------------------------------------------------------------------------
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iv- Explain how you will develop your employees (training programs, mentorship…) and
estimate the training and development cost/employee
--Development of the employees of the organization is one of the effective way through which
they can be prepared to meet the challenges and objectives of the organization. Therefore the
company will use a set of training programs and mentorship. The needs of the employees will be
assessed to determine the area of training required. Experts and trainers will be employed to
conduct the training program. The training and development cost of the employees will depend
on the specific areas of training and the duration required to achieve the
objective.---------------------------------------------------------------------------------------------------------
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B. National Hiring
i- Specify the roles that can be filled up by Kuwaitis and assess the likelihood of success
in doing so
----Kuwaitis can be employed for a variety of position in the company. They can take the role of
the executives, management staff, administrators, sales professionals, front-office executive, etc.
They can be contacted through national hiring process and can suit the needs of the
position.----------------------------------------------------------------------------------------------------------
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[Company Name] 13
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C. Founders’ Profiles
i- Describe the shareholders who founded the business
Name, Title
(% share)
Brief Job
Description/
(Full/ Part time)
Education/
Qualifications
Experience Basic
Annual
Salary
Benefits/
bonus
Annual
Increase
Date and
period of
hiring
Mr. Khan Full Time MBA, MSc 15 years KWD
60,505
Perfor
mance
Bonus
10-12% May
2019
Mr.
Abraham
Full Time PhD 7 years KWD
65,300
Perfor
mance
Bonus
10-12% May
2019
Mr
kumaran
Part time MBA 17 years KWD
35,208
Perfor
mance
Bonus
10-12% June
2019
ii- Would the exit of any of the shareholders hurt the business? If yes, estimate the impact.
--------The exit of the shareholders will not impact the business as they are only liable to the
amount of capital invested. The exit of shareholders may change the management profile of the
company which can be managed through proper planning and
policies.----------------------------------------------------------------------------------------------------------
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D. Management
i- Describe the management team, excluding the founders mentioned before, needed to
run the business
Position
(Nationality)
Brief Job
Description/
(Full/ Part time)
Education/
Qualifications
Experience Basic
Annual
Salary
Benefits/
bonus
Annual
Increase
Date and
period of
hiring
Mr. J.
Khalid
Management
Executive
MBA 10 years KWD
55900
Perfor
mance
based
10-12% June
2109

[Company Name] 14
benefits
Mr Jinnal Management
Executive
MSc 12 years KWD
60988
Perfor
mance
based
benefits
10-12% June
2019
ii- In case your company is already operational, highlight any changes happened within
the management team in the last 3 years. If any changes happened, elaborate on the
reason behind the change and the impact on the business
-------The changes within the management team may occur during the course of business. Some
of the executives may resign or exit the post which may alter the management team. They may
even choose to sell off their investment in the organization and take responsibility in another
organization. The impact of such situation on the company can be minimized through the
formation of appropriate policy. Whenever any changes happen in the management team, the
new members should do through an induction program which prepares him to take the
responsibility.---------------------------------------------------------------------------------------------------
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E. Operating Team’s Profile
i- Describe the operating team needed for the business
Position
(Nationality)
Brief Job
Description/
(Full/ Part time)
Education/
Qualifications
Experience Basic
Annual
Salary
Benefits/
bonus
Annual
Increase
Date and
period of
hiring
Mr Lincoln Sales manager MBA 5 years 35000 Nil 10-12% July
2019
Mrs.
Anthony
Recruitment
Manager
MBA 7 years 32000 Nil 10-12% July
2019
Mr Yusuf Service
Delivery
Manager
Sales and
Marketing
12 years 37000 Nil 10-12% July
2019

[Company Name] 15

[Company Name] 16
IV- Physical Location
i- If you plan to construct a property, fill in the below table by answering the following
questions:
a- Identify the type of the property (building/office/factory…)
b- Specify the type of construction (bricks, Shinko)
c- Specify the area of the land that will be used for the construction
d- Specify the total area built (BUA)
e- Specify the source of the land
f- Specify the cost of construction per sqm
g- Clarify the reason for choosing the location of the land you will construct
(affordable price, convenience…)
Property
type
Construction
type
Land area
(sqm)
BUA
(sqm)
Source of
land (other)
Construction
cost/ sqm (quote
or actual)
Reason for
choosing the
location
Buildin
g
Briks 2000 sq
feet
1800 sq
feet
Contractors KWD 1500 Convenience
ii- If you plan to rent/are currently renting a property, fill in the below table by answering
the following questions:
a- Identify the type of the property (building/office/factory…)
b- Specify the total area rented
c- Specify the rental rate per sqm
d- Clarify the reason for choosing the location of the rented property (affordable rent,
convenience…)
Property type Total area rented (sqm) Annual rental rate/ sqm
(quote or actual)
Reason for choosing the
location
iii- If you plan to purchase/own a property, fill in the below table by answering the
following questions:
a- Identify the type of the property (building/office/factory…)
b- Specify the total area purchased
c- Specify the purchase price per sqm

[Company Name] 17
d- Clarify the reason for choosing the location of the bought property (affordable rent,
convenience…)
Property type Total area purchased
(sqm)
Price/ sqm (quote or actual) Reason for choosing the
location

[Company Name] 18
V- Products/Services
A. Portfolio Composition
Fill in the below table by answering the following questions:
i- List the products and/or services offered to your customers
ii- Describe their features and competitive advantage
iii- Assign the life cycle stage (conception, introduction, growth, maturity, innovation, or
decline)
iv- Assign the development stage (model stage, working prototype, full manufacturing), if
the product does not yet exist in the market
v- State the % of contribution of each product and/or service to total sales
Name Description Life cycle stage Development
stage
Average %
contribution to total
sales over 5 years
Academic
services
We will
provide
academic
services to the
students and
learning
professionals
Growth Working proto
type
60%
Professional
Services
We will
provide
professional
services to the
executives and
working
professionals.
Introduction Working
prototype
40%
B. Production/Service Delivery/Operation Process
i- Describe the production/operation process, if there is any, in a flow chart (change the
chart as needed)

[Company Name] 19
ii- Fill in the below table, where applicable, by answering the following questions:
1- Indicate whether the activity will be performed in-house (internal) or outsourced
(subcontractor)
2- Estimate the duration taken to perform each activity
3- Estimate the cost of performing each activity
4- Estimate how much each activity will contribute to the total sales over the next 5
years
Activity Internal/
Subcontractor
name
Duration Cost Average contribution
of the activity to make
the product/service
available
Assessing
the needs of
the customer
Internal 1 week KWD 200-
500
30%
Development
of the project
Internal and
Subcontractor
Depending upon
the type of the
project
KWD 500 60%
Delivery of
the project
Internal 3-4 days KWD 200 10%
iii- Discuss the availability of inventory/ready-made services and the stocking process, if
applicable
----The product offered by our company include the services. These are customized service
depending upon the needs of the customers. Therefore they cannot be pre-produced or stored.
The delivery process becomes an important part of the service.
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Assessing the
specific need of
the customer for
academic service
Assessing the
need for
professional
project
Stage1
Development
and review of
the academic
project
Development of
professional
project
Stage 2
Delivery of the
academic project
Delivery of the
professional
project
Stage 3

[Company Name] 20
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iv- Describe the required property, plant, and equipment and provide the supporting
documents if available (contracts, emails, quotations…)
Property,
Plant, &
Equipmen
t
Use Layout/
Specification
(size, type)
Cost Quotations obtained (Source and
amount)
Furniture For office and
administrative
use
Covering
entire office
KWD
5000
Through emails.
Office
Building
For office
work and
developing
projects for
the clients
Office
Building
KWD
70000
Through emails.
v- Mention the production capacity and utilization of each line/product per year, if
applicable
Line/
product
Capacity Utilization
T = 1 T = 2 T = 3 T = 4 T = 5 T = 1 T = 2 T = 3 T = 4 T = 5
Not
Appli
cable

[Company Name] 21
C. Environmental Impact
i- Assess the impact of your project (products/services) on the environment (positive,
negative, neutral) and explain the reason
------The projects developed by our company will have minimal impact on the nature and
environment. As our company is not engaged in any production activity, there will be no
exploitation of the resources or the pollution from production activities. The impact on the
environment would only be related to the operations of the office. Thus the impact on the
environment may include, pollution due to air conditioner, electricity consumption, pollution due
to operation of computers and devices, etc. Therefore we can say that the impact of our services
on the environment will be neutral.
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[Company Name] 22
VI- Market Analysis
A. Market Overview and Sizing
i- Describe the primary market of your company and your position within it
--The primary market for our company will include all the educational and professional projects
which need expert knowledge. These projects are highly complex as they need expertise of more
than one area. We have professionals and experts in our company who can accomplish such
tasks.-------------------------------------------------------------------------------------------------------------
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ii- Estimate the size of the market and its 5-year growth outlook
-----The need for such projects are increasing as the business environment is becoming more
complex. Thus the market is expected to grow in the next 5 years at the rate of 7-10 percent per
annum.
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B. Sector Trends
i- Discuss the general trends in the sector
----The sector in which our company would operate is one of the growing sector of the economy.
As the business and educational environment in Kuwait is expanding, the sector which caters
such needs are high in demand. Thus the trend faced by this sector is growing trend.
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ii- Describe upcoming trends that might reshape the market
----The upcoming trend in this sector may include growing need for such services in the
academic and professional field. There are a number of projects faced by an organization and
students during their course of operations. Such projects need varied skills which may not be
possessed by a single individual. Our company employs a team of experts who can develop such
projects and deliver the solutions within the time frame. Due to the advent of globalization and

[Company Name] 23
privatization, the need for such services is expected to rise in
future.------------------------------------------------------------------------------------------------------------
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iii- Analyze the impact of market changes (e.g. change in interests, supply/demand
shock…) on your business and suggest means to overcome them
--------Service sector dealing with complex educational and professional projects is less likely to
face any impact of changes in market economy. Education is one such sector which is not
affected by the ups and downs of the economic changes. There will always be demand for quality
education. Thus any industry service such sector will face least impact of the changes in market
conditions.
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C. Target Market Segmentation
i- Specify the target market you will address and the ones you will ignore (critical needs,
demographics, location, seasonal trends, buyers’ purchasing power, suppliers’
purchasing power)
-The target market that will be addressed by our company include, the people with academic or
professional needs. They will be characterized based on their needs, demographics, purchasing
power and trends. Based on the needs the customers, it will include complex projects which
require knowledge of more than one domain. Such projects can be handled by a team from
various expertise.
Based on the demographic segmentation, the target market will include people around age
group 21- 40 years. They are either studying in universities or working in organizations. These
people face the task to work on complex projects which need expertise of more than one
domain.----------Based on the buyer’s purchasing power, the target customers will include
people with middle to high
income.-----------------------------------------------------------------------------------------------------------
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ii- Specify the level of market penetration/share you believe you have, if you are an
existing company, and the level you target to achieve in the next five years

[Company Name] 24
--The level of market penetration is low at present as people are not aware of the existence of
such services. However over the period of next five years, the demand for such services will
increase as business and academic projects become more complex and challenging. Therefore
the next five year period, we expect to reach around 15-20% growth in
sales.-------------------------------------------------------------------------------------------------------------
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iii- Explain how you will increase your market share
-In order to increase the market share, our organization will attract more customers in the
market. With the help of quality services, the company will build a base of long term customers.
Such strategies will help improve the market share of the organization.
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D. Competition
i- Identify your direct and indirect competitors
------We face direct competition from the service companies who employ people from various
domain to work on complex projects. These organizations have an in-built team of professionals
who can meet the needs of the complex projects.
We face indirect competition from software and ERP systems which can solve the complex
projects. With the rise in artificial intelligence, the outcome of the projects can be achieved
without the help of the professionals. This creates a situation of indirect competition which can
lower the demand for our services in
future.------------------------------------------------------------------------------------------------------------
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ii- Analyze the competitive advantage each competitor enjoys compared to you
Competitor Market
Share
Key Competitive Advantage (s)
Aon Consulting 12% Have spent more time in the industry.
Atkins Global 7% Aware of the needs of customers.
Gartner 6% Low operating costs.
Logica 8% Expert in financial services
iii- Mention the products/services of your competitors, the similarities/differences you have
with them, and how you plan to narrow the gap with them

[Company Name] 25
The similarity of the products with the competitors include that both the company provide
consulting services in complex projects related to academic and professional fields.
Our product is different from that of the competitor as they are highly customized
according to the needs of the clients which qualify them to meet the outcome of the project.
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iv- Discuss your competitive advantage compared to the market
------The competitive advantage developed by our company include handling of complex projects
which require knowledge of more than one domain. We have a team of experts from various
sectors which are capable to meet the requirements of the project.
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v- Discuss the barriers to entry (set-up cost, time, technology, switching cost, patents..)
into the market and how you can mitigate them
One of the most important barriers to entry include, knowledge to handle customers in the
industry. There may be various type of customers, each one with a different set of needs. For a
new company, it is very difficult to understand such needs and deliver the project according to
the requirements. When these projects do not qualify the needs of the customers, they are failed
and rejected by the customers. Therefore in order to sustain in this industry, it is important that
the rejected projects are low and there are more number of satisfied
customers.-------------------------------------------------------------------------------------------------------
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vi- Explain how you would respond to increase in competition and loss of customers to
competitors
-----In situations when there is a rise in the level of competition or loss of customers to the
competitors, the company will improve its quality of services. With the help of higher satisfaction
level of the customers, it is easy to retain them for a longer time.
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[Company Name] 26
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E. Customers
i- Identify the major current and potential types of customers: institutional, retail,
government
-Some of the potential customers are as follows:
Institutional—It may include institutions looking for consultancy service on projects with they
have little knowledge or expertise. It can include financial institutions, trade agencies, NGOs,
etc.
Retail- It may include companies both small and large which are looking for consultancy
services for complex projects.
Government- It may include government agencies and institutes which are looking for
consultancy services in their upcoming
projects.----------------------------------------------------------------------------------------------------------
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ii- Discuss the profile (demographics, income level, trends, lifestyles, needs) of the
customers you target or plan to target
--The profile of the customers of our company include:
Demographics- They would be around 21 to 40 years of age.
Income Level- They are middle to high income professionals.
Trends- They would be facing complex projects for which they need consulting services.
Lifestyle- They have a fast lifestyle due to which they have little time to gain expertise or
knowledge in other fields.
Needs--- They have high need to perform in the market in order to grow and sustain in
future.------------------------------------------------------------------------------------------------------------
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iii- Describe the switching cost of your customers and the means to retain them and attract
new ones.

[Company Name] 27
----The switching cost of the customers is the cost which the customers has to bear as a result of
changing brand or products. When any of our customer move to other competitor company, they would
face some of the challenges which are as follows:
 Difference in methodology to work on the projects.
 Difference in the outcome of the project.
 Difference in understanding the requirements of the projects.
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F. Suppliers
i- Identify the major suppliers in the market and assess if they control the market
-The major suppliers in the market include consulting organizations which provide expertise of
various field. They work on the complex projects to deliver outcome to the customers. The
number of such consultancy firm in Kuwait is limited. They are few in number and have
adequate control over the market. The prices are determined based on the quality of the services.
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ii- Specify the suppliers you will deal with and justify your choice
---The suppliers with which our organization has to deal with include, the recruitment agencies
who will provide employees for the company. In order to recruit an efficient team, the company
has to contact the recruitment
agencies.---------------------------------------------------------------------------------------------------------
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iii- Evaluate your possibility to change suppliers and estimate the corresponding switching
cost
-It is possible to change the suppliers and avail the talent from other recruitment agency. The
corresponding switching cost will include the quality of candidates sent by
them.--------------------------------------------------------------------------------------------------------------
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[Company Name] 28
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G. Timing of Market Entry
i- If you are a new business or planning to launch a new product/branch, choose the
timing and explain the reason behind that
----If a new product or service need to be launched, the timing is one of the important factor.
Such products or service should be launched based on their season. When there is high demand,
it is appropriate to launch the product as more customers can be attracted.
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-

[Company Name] 29
VII- SWOT Analysis
After assessing the market and devising how your company functions, state the company’s
strengths and weaknesses, and the opportunities and threats that the market might impose. Also,
elaborate on how you will capitalize on the strengths and opportunities while you overcome the
weaknesses and mitigate the threats
A. Strengths
---The company has a strong planning for launching its services to the target customers.
It has a highly expert team for delivery of services which will provide quality services.
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B. Weaknesses
--------The company is new in the sector and therefore may face challenges while attracting the
customers.
-The cost of operations may be high and therefor it may seem difficult to deal with the levl of
competition in the
market.--------------------------------------------------------------------------------------------------------------------------------
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C. Opportunities
-----It is one of the growing sector where the demand is expected to rise in future.
There are few number of companies which provide adequate service. Thus the market is not fully
explored.------------------------------------------------------------------------------------------------------------------------------
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---

[Company Name] 30
D. Threats
---------The existing companies in the sector have been operating since a long time and therefore has a
strong hold on the market.
The growth of Artificial Intelligence may reduce the demand for such services.
The in-house development of expertise by the organization may impact the demand for such
consultancy services.
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Based on the above analysis, explain how you can improve your business (reduce cost by
outsourcing, increase market share by offering superior quality or price discounts, or avoid
margin reduction due to increasing cost…)
--Based on the above analysis, the business can be improved in the following ways:
Improving quality- If the company provide quality services to the customers, it may be easy to attract
them even in a competitive market. A start-up organization can establish itself through positive
response form the customers. Gradually it can build relation which can be used for long term
sustainability.
Outsourcing- The other companies in the sector, are already established and face advantage due to
learning curve. Therefore our company can succeed by outsourcing some of the tasks, in which it is still
developing expertise.
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[Company Name] 31
VIII- Strategy
A. Action Plan
i- Milestones: Explain your action plan to make your company a success. List the key
milestones and the potential corresponding dates of each
---In order to make the company a success, the following action plan with the respective
milestone has been identified. Generating awareness- Various activities will be conducted in order to create awareness
for the products and services of the organization. This will be accomplished through
integrated marketing activities. Some of the important model include social media
marketing, print marketing, etc. The milestone will be reached when the awareness of the
company has been increased among the target customers.
 Product Quality- The company will organize its activities which will improve the product
quality. This is important to improve the satisfaction level of the customers. The quality
of service will be continuously monitored in order to provide effective solutions. The
milestone will be reached when the customers give positive review about the products of
the organization.
 Decrease in cost of operations- The company will be able to succeed, through decreasing
the cost of production. In order to achieve this milestone, the company will adopt various
technologies which can improve the efficiency of the operations.
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B. Marketing Strategy
i- Company Image: Describe how you want to position your company (product/service:
luxury, affordable, necessity…) and how you will achieve your goal (high quality,
affordable pricing…)
--The company will be position itself as one of the organization which provide affordable
consultancy services. The services will be priced in a manner, which indicate the value to the
customers. This position will be achieved through the adoption of affordable pricing strategy.
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[Company Name] 32
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---
ii- Customer Service: Explain how you will handle the customer service, the warranties
and guarantees concerning your products/services, and the return policy and service
costs
-----As we are operating in the service sector, there is no case of warranties or return policy.
However we will provide guarantee about the quality of our services which will build trust of the
customers.
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iii- Advertising and Promotion: Discuss the channels used to reach out to customers
---------In order to reach maximum number of target customers, we will use integrated
advertising techniques. This will increase awareness about the existence of our
product.----------------------------------------------------------------------------------------------------------
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iv- Market penetration effectiveness: Estimate how you will measure the effectiveness of
each marketing tactic
----The effectiveness of each of the marketing tactic will be measured through the level of
penetration reached. For example in order to measure the effectiveness of the advertising
activities, the increase in the sales will be calculated for that period. In order to know the
effectiveness of the promotion activities, the increase in the level of new customers will be
calculated.-------------------------------------------------------------------------------------------------------
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v- Marketing cost: Estimate the marketing cost of the activities you conduct
Activity Frequency Cost/Activity Total Cost
Activity 1 Advertising $50,000
Activity 2 Promotion $35000
Activity 3 Social media
marketing
$30,000

[Company Name] 33
Activity 4 Sales
promotions
40,000
Activity 5
C. Sales Strategy
i- Sales Force: Describe your sales approach and whether you will have an internal
and/or external sales force team
------We will use the internal team for achieving the sale objective of the company. This team
will maintain relations with the target customers and influence their decisions towards the
services of the company. The internal team will have adequate knowledge about the features of
the product of the
organization.----------------------------------------------------------------------------------------------------
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ii- Describe the distribution channels that the company uses or plans to use
The distribution channel which will be used by the company include direct delivery of the
services. The teams working of the projects of the clients will also be responsible for the delivery
of the projects. The use of direct delivery method will help in maintaining the quality of the
services.----------------------------------------------------------------------------------------------------------
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iii- Indicate if you have undertaken trial runs with customers or potential customers. If yes,
explain the outcome and provide supporting documents (contracts, emails…) as an
appendix
-The company will provide trail runs to the prospective customers. The feedback of the
customers will be availed through the emails which will be used for development of the services
of the organization.
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----

[Company Name] 34
iv- Existing/new contracts: Fill in the below table with the details of the contracts that the
company has
Project
details
Main or
subcontractor
Project Value
(KWD)
Remaining
value (KWD)
Start
date
End
date
% of
completion
Gross Profit
Margin
Financi
al Asset
analysi
s
project
Financial
Institutions
50,000
KWD
35,000
KWD
June
2019
Octob
er
2019
40% 20%
Technol
ogy
projects
Manufacturin
g companies
35,000
KWD
10,000 Augus
t 2019
Octob
er
2019
10% 25%
v- Sales projections: Fill in the below table with the sales projections of the next 5 years
Product/Service Year 1 Year 2 Year 3 Year 4 Year 5
Product 1 50,000 60,000 80,000 130,000 150,000
Product 2 35,000 40,000 100,000 120,000 160,000
Product 3
Product 4
Product 5
Service 1
Service 2
Service 3
Service 4
Service 5
D. Pricing Strategy
i- Devise your pricing strategy (low volume/high margin, high volume, low margin,
dynamic, static…) and explain the reason behind your choice
---The company will use high volume low margin pricing strategy. This will developing larger
customer base. This strategy will help deal with the competition and also ensure that the profits
is earned through quality
service.-----------------------------------------------------------------------------------------------------------
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[Company Name] 35
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ii- Provide a price and gross margin list by product, if possible, and explain how your
prices and margins compare to your peers
Product/
Service
Price Price vs. Market
average (3-5 years)
Margin Margin vs. market
average (3-5 years)
Financial
Consultancy
service
30,000
KWD
3 years 10% 3
Trade consultancy
service
25,000
KWD
2 years 15% 4
Project
consultancy
service
35,000
KWD
4 years 12% 3
iii- Discuss your promotion/discount strategy
---The promotional strategy which will be followed by the company include providing free
consultancy to the first projects of the clients. In this manner the company will be able to
establish itself and gain customers through quality
service.-----------------------------------------------------------------------------------------------------------
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iv- Describe the impact of the changing prices (increase/decrease) of your
products/services on your customers (no impact, loss of existing customers, gain of new
customers) and justify the reason behind the impact
---The impact of increasing the prices of our services will create a positive impact on the
customers. The customers will judge that the prices has increased due to improvement in the
quality of the service.
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--

[Company Name] 36
IX- Financial Plan
A. Funding Requirements
i- Estimate the amount of funding needed to run the business (the capital should not
exceed KWD 100,000)
Total Amount
100,000
ii- Breakdown the loan amount required according to the purpose/use of the money
(capital spending funding, operating expenses funding…). If the loan purpose is to fund
operating expenses, specify if the expenses cover a period of 3, 6, 9, 12 months
(maximum) or other intervals
Purpose Amount Date of spending the amount
Office Building 30,00
Furniture 20,000
Operating costs 25,000
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-
B. Financial information
i- Describe the performance of the company for at most the last three years (revenue
growth, asset growth, return changes, margin trend…), in case it existed, and identify
the drivers behind the changes
--------The company has attractive performance for the period of last three years. It has seen
growth in the revenue and
profits.------------------------------------------------------------------------------------------------------------
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-----
ii- Estimate the potential return on investment after 5 years of operations and assess the
probability of achieving it
-----The company has high potential for earning returns in the period of next five years. As the
company is in the growth phase,-the probability for achieving such returns is

[Company Name] 37
high.--------------------------------------------------------------------------------------------------------------
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iii- Estimate how much of your financial statements (cash balance, sales, asset
purchases/sales) can be traced through the company’s bank account due to credit
sales, bank transfers/deposits/payments
----------The various items of the financial statements, can be traced through the company’s bank
account. For example the credit sales can be traced through the accounts receivable.
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iv- Identify the assumptions (revenues, net profit, margins…) you have doubts about as a
result of being conservative or optimistic, the reason for that, and the impact on your
business (positive or negative)
-----As a result of being conservative, the revenue of the company is recognized only when the
proceeds from the sales is
received.---------------------------------------------------------------------------------------------------------
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[Company Name] 38
References
Provide the references (websites, hardcopy studies, copy of sections from books) to support the
data used in the study. It is highly recommended that you only use credible sources.
A. References
Dadashzadeh, M. (2009). A New Methodology For Developing The MIS Master
Plan. Review of Business Information Systems (RBIS), 13(1).
Green, C. and DeRuiter, M. (2010). Business: Developing a Marketing Plan: Initial
Considerations. Perspectives on Administration and Supervision, 20(2), p.48.
Green, J. (2013). Financial Statement Analysis and Equity Valuation. SSRN
Electronic Journal.
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[Company Name] 39
Financial Statements
Fill in the below financial statements
A. Income Statement
Period Historical/ Pre-operation period Forecast period
Start of period
End of period
Revenue 0 0 0 0 2000 2500 3000 3500 4000
Cost 0 0 0 0 800 1000 1200 1350 1400
Gross Profit
Staff Cost 0 0 0 0 500 500 500 500 500
General &
Administrative
Expenses 0 0 0 0 300 300 300 300 300
Sales & Marketing
Expenses 0 0 0 0 150 150 150 150 150
Other Expenses 0 0 0 0 0 0 0 0 0
Other Income 0 0 0 0 0 0 0 0 0
EBITDA
Depreciation &
Amortization 0 0 0 0 100 100 100 100 100
EOSB Provisions 0 0 0 0 0 0 0 0 0
EBIT
Finance Cost 0 0 0 0 100 100 100 100 100
EBT
Tax Provisions
(KFAS, Zakat,
other) 0 0 0 0 200 200 200 200 200
Net Profit 0 0 0 0 -150 150 450 950 1250

[Company Name] 40
B. Balance Sheet
Period Historical/ Pre-operation period Forecast period
Start of period
End of period
Assets
Current Assets
Cash & Bank
Balance 0 0 0 0 1500 2000 2500 3000 3500
Accounts
Receivables 0 0 0 0 5000 6500 7200 7800 8500
Inventories 0 0 0 0 0
Other Current
Assets 0 0 0 0 0
Total current assets 6500 8500 9700 10800 12000
Non-current
Assets
Land 30000 30000 30000 30000 30000
Construction work
in progress 0 0 0 0 0
Property Plant &
Equipment 0 0 0 0 0
Intangible Assets 200 200 200 200 200
Other Fixed
Assets 1000 1000 1000 1000 1000
Total non-current
Assets 31200 31200 31200 31200 31200
Total assets 37700 39700 40900 42000 43200
Liabilities &
Equities
Current liabilities
Accounts payable 1000 2500 3500 4500 5500
Short-term 200 115 110 105 100

[Company Name] 41
Portion of Loan
Dividends
Payable
Tax Payable
Overdraft
Other Current
Liabilities 550 500 400 300 250
Total Current
Liabilities 1750 3115 4010 5010 5850
Period Historical/ Pre-operation period Forecast period
Start of period
End of period
Non-current
liabilities
Long-term Portion
of Loan 500 480 450 430 400
EOSB Provisions
Other Non-
Current Liabilities 250 350 375 400 425
Total non-current
liabilities 750 830 825 830 825
Shareholders’
Equity
Share Capital 15000 15000 15000 15000 15000
Statutory
Reserves 5000 7500 6500 7800 6800
Voluntary
Reserves
Retained Earning 15200 13255 14565 13360 14725
Other Accounts
Total Shareholders’
Equity 35200 35755 36065 36160 36525
Total Liabilities &
Equity 37700 39700 40900 42000 43200

[Company Name] 42
C. Cash Flow Statement
Period Historical/ Pre-operation period Forecast period
Start of period
End of period
Operating
Activities
Net Profit -150 150 450 950 1250
Add:
Depreciation &
Amortization 100 100 100 100 100
Finance Cost 100 100 100 100 100
EOSB Provisions
Tax Provisions 0 0 0 0 0
Deduct:
EOSB Paid
Tax Paid
Working Capital
Changes
Accounts
Receivables 5000 6500 7200 7500 8500
Inventories 0
Other Current
Assets 0
Accounts
Payable 1000 2500 3500 4500 5500

[Company Name] 43
Other Current
Liabilities 550 500 400 300 250
Cash Flow from
Operations
Investing
Activities
Purchase of Fixed
Assets
Other
Investments
Proceeds from
sale of fixed
assets
Period Historical/ Pre-operation period Forecast period
Start of period
End of period
Cash flow from
Investments
Financing
Activities
Share Capital
Loan Additions
Other Accounts
Loan Repayment
Finance Cost Paid
Dividends Paid
Cash flow from
Financing
Change in cash
Opening Cash
Net Cash Flow
Closing Cash

[Company Name] 44
Minimum Cash
Overdraft Raised
Closing Cash -
After OD