AMA WORLD SOLUTION LTD: Comprehensive Business Plan for New Venture

This business plan outlines AMA WORLD SOLUTION LTD's new venture in Rwanda, focusing on manufacturing travel luggage and accessories. The plan includes an executive summary, owner profiles, and a detailed market research analysis, highlighting Rwanda's potential for business growth. It covers operational requirements, including tangible and intangible resources, as well as legal compliance. Financial forecasts, including revenue, costs, and cash flow, are provided for a five-year period. The plan also addresses seasonal trends and offers a contingency plan. The project aims to create employment opportunities and improve Rwanda's economy by exporting luggage and bags to neighboring countries. The plan emphasizes low pricing strategies to attract customers and includes marketing strategies such as social media and newspaper advertisements. Overall, the business plan provides a comprehensive overview of the venture's viability and potential for success.

Business Plan

Executive summary
AMA WORLD SOLUTION LTD is started its new venture and for that it started
manufacturing Travel Luggage and Bags, and accessories for Travel Luggage and Bags, so
that it provide employment opportunities for the people of Rwanda and the basis of project is
mainly of two (2) major factors. The business affiliation extends overseas to UK and Hong
Kong, but presently it is situated in UK. The project main aim is to improve the economy of a
country and because it is count one of the low income country. With the help of secondary
research, the study reflected that the new business is quite viable and that is why, it will help
to increase the financial growth of a business. Study also present the financial cost which is
required for introducing the business in better manner and there is a need to comply with all
the legal requirement and analyse the tangible and intangible resources needed to meet the
define aim.

Table of Contents
Executive summary....................................................................................................................2
Owner Experience..................................................................................................................3
New Venture focus on............................................................................................................3
Market research......................................................................................................................3
Operational Requirement.......................................................................................................5
Cost and Pricing strategy.......................................................................................................6
Financial forecasting..............................................................................................................6
1. Revenue forecast................................................................................................................6
3. Entire business running cost...............................................................................................7
4. Cash flow forecast..............................................................................................................7
5. Amount of funds that need to be raised from investors.....................................................8
Contingency Plan...................................................................................................................8
REFERENCES...........................................................................................................................9

Owner Experience
AMA WORLD SOLUTION LTD is owned by two owner Mr Masood Ahga Director,
Miss Soriya S Mahomed, Director whose profiles are as follows:
Mr. Massod Ahga
He is the British Citizen and a main promoter of the project and is a very experienced
businessman who actually gain huge exposure in order to establish small to medium business
in foreign countries such as UK, Hong Kong, China.
Miss Soriya S Mahomed
She is also a British Citizen and have a enough knowledge of business management
and involved herself in top UK projects as well.
New Venture focus on
The new venture mainly focused to create employment opportunities and also
improve the economic welfare for Rwanda Population. As there are two main product which
will be introduced such as Manufacturing of Travel Luggage and bags, next is manufacturing
accessories for Travel Luggage and Bags. Thus, project will again offer employment to
mostly skilled and semi-skilled manpower providing extensive training where required which
in turn help to improve the overall performance and make employees professionally skilled.
Market research
Market Place
As per the secondary research, it is analyzed that Rwanda is consider as a 29th easiest
place to do business in a world and also the only low income country as well (Kanten and
Darma, 2017). That is why, starting new business in this place will help to improve the
employment opportunities for youngsters. As AMA WORLD SOLUTION LTD manufacture
the luggage bags for the customers, so it is consider the good option because it is low income
country and that is why, investing in this place will be beneficial in order to improve
economic welfare.
Market Segmentation
It is the process of dividing the market of a potential customers into groups which is
based upon different characteristic. For the new venture, AMA WORLD SOLUTION LTD
segment the people on the basis of age such as it target people whose age is in between 23 to
35 because at this age, the mind is young and that is why, they support the business by
providing new ideas and this in turn leads to meet the define aim (Key and Czaplewski,

2017). Further, the market segmentation opted demographic segmentation and that is why, it
uses age as a trait which help to get quick respond from customers.
Marketing Strategy
In order to promote the new business within market, it is necessary to use best
marketing strategy that helps to meet the define aim. Such as, AMA WORLD SOLUTION
LTD uses modern form of marketing strategy in order to promote the new product in which it
provide advertisement in Facebook and Twitter so that range of unemployed people will get
benefit from the opportunity and meet the define aim. Moreover, company also publish an
advertisement in newspaper which is consider as a traditional form of marketing style.
Through this, most of the people are attracted and will started working with AMA WORLD
SOLUTION LTD so that they may easily feed their family.
Competitor
Particulars AMA WORLD
SOLUTION LTD
Dokmai Rwanda Vietnam PP Woven
Bag Manufacturer
Products The company
manufacture travel
luggage bags and
accessories related
to travel bags as
well.
Firm manufacture all
kind of leather bags
only.
Organization offer
polypropylene
woven sack,
polypropylene
woven fabric to the
customers
Price The company will
uses low pricing
style because it is a
newly start-up firm
and that is why, the
prices are low.
It uses penetration
pricing style that
helps to attract
customers towards it
(Morgan and et.al.,
2019).
It uses competitive
pricing strategy
because the firm has
a brand image at
international level
and that is why, it
changes its pricing
style after analyzing
others price.
Promotion tool It uses social media
marketing style in
which Facebook and
It uses only
traditional form of
marketing tools in
It uses only modern
form of marketing
style in which social

Twitter is used.
Further, published
advertisement in
newspaper is another
promotional tool
used by the firm.
which newspaper
and billboards are
used that assist to
attract the
customers.
media and websites
are used that aid to
draw attention of
many customers
(Kingsnorth, 2019).
Unique Selling Point
The USP of the project is its aim and objective such that the project mainly focus
upon to provide employment opportunities to the people of Rwanda and also improve the
professional and personal skills which in turn assist in their near future (Olson and et.al.,
2018). Also, the luggage and travel bags which are discovered, then they are export to the
neighboring countries so that the country get benefit which in turn help to improve the
economy as well.
Operational Requirement
Tangible and Intangible requirement
Tangible resources are also known as physical item which can be touched by the hand
and for the current business venture, cash, inventory, machinery, land and buildings are
consider as a tangible resources (Patrutiu-Baltes, 2016). Also, machinery and equipment
which need to import machinery and equipment are necessary for procurement of a project.
Intangible requirement are those resources which cannot be moved or touched. For
the present new venture, goodwill, patents and trademarks, copyright are consider as an
intangible resources.
Legal Requirement
Legal requirement is laws and policy which is required to establish the new business
within a business. Thus, Complying with the Companies act of Rwanda is necessary that help
to register the business (Taoketao and et.al., 2018). Further, it is also necessary to comply
with competition and consumer protection law which encourage fair and robust competition
in economy by prohibiting the practices and following anti-competitive practices by setting
out the standards for fair trading.

Moreover, Intellectual Property Law must be complied that assist to creates rights in
intellectual property for inventors so that they also get the limits of those rights and
understand their roles and responsibilities. Also, make sure code of conduct must be followed
and all the work should be done in ethical manner in order to meet the define aim. Further,
proper confidentiality should be maintained in order to protect the data from getting misused
and this in turn leads to successfully launch the business in Rwanda.
Cost and Pricing strategy
In order to introduce the new business in new country, there is a need to make sure
that cost of the offered product is not so high so that it will be purchased by all the customers.
As the motive of the business is to provide employment opportunities to the people and that is
why, company should comply low pricing strategy in which products i.e. luggage bags and
accessories should be of low rate so that these product will be easily export in neighboring
countries (Varadarajan, 2020). Further, the cost of each luggage will be low and at the first
purchase of the product, company offer special discount to the customers so that they will
easily attract and this in turn leads to improve the financial performance of a business as well.
Financial forecasting
1. Revenue forecast
Sales
forecast
Years
Total
sales
Units
sold
Cost
per
unit
Sell
price Revenue
Gross
profit
Gross
profit
%
1 1250000 50000 12 600000 650000 600000 48%
2 3000000 80000 12 960000 2040000 960000 32%
3 4250000 60000 12 720000 3530000 720000 17%
4 5100000 70000 12 840000 4260000 840000 16%
5 6600000 40000 12 480000 6120000 480000 7%
2. Impact of seasonal trends
As the company is looking for expanding its manufacturing of trolley bags in Rwanda, it
must have to consider the changing trends and preferences of consumers with regard to travel

and tourism bags. The sales of company is seen as very much affected by the seasonal trends
as due to COVID 19, people does not prefer to travel from one place to another so it there
will be very less demand for the tourism bags. Moreover, most of the people prefer to travel
in suitable climate and best weather conditions so this product demand is seasonable.
However, some of the people travel on a frequent basis that within short interval of time due
to business related work or for job purpose which clearly indicates high demand for such type
of products. Thus, the revenue and sales of this firm would change with changes in the season
or climatic conditions. This leads to fluctuation in business in terms or increase or decrease in
the sales and profitability.
3. Entire business running cost
Business running cost
Years
Production
cost
Interest
payments
Electricity
expense
Labor
cost Rent Utilities Total
1 800000 81375 300000 50000
50000
0 40000 1771375
2 1900000 88100 500000 70000
50000
0 30000 3088100
3 2730000 198100 600000 90000
50000
0 70000 4188100
4 3200000 240000 700000 100000
50000
0 55000 4795000
5 4000000 290762 750000 120000
50000
0 45000 5705762
4. Cash flow forecast
Years
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Operating activities
Net profit 206569 566803 715003 957125 1395079
Depreciation 34100 94000 164000 110000 50000
Inventories 320000 385000 550000 740000 950000
Total operating activities 560669 1045803
142900
3 1807125 2395079
Investing activities
Capital expenses 815000 1205000 112500 990000 1600000

0
Other investing cash flows 75000 25000 25000
Total investing activity 890000 1230000
112500
0 1015000 1600000
Financing activity
Long term debt 170500 470000 820000 550000 250000
Preferred stock 800000 750000 600000 850000 900000
Common stock 500000 540000 620000 680000 700000
Other financing 99900 80000 350000 440000 620000
Total financing activities 1570400 1840000
239000
0 2520000 2470000
Cumulative cash flows 3021069 4115803
494400
3 5342125 6465079
Opening cash balance 75000 25000 50000 25000 75000
Closing cash balance 2946069 4090803
489400
3 5317125 6390079
5. Amount of funds that need to be raised from investors
For making the investment in its new project, the company would be requiring large amount
of the funds as it needs to set up the plant for manufacturing the trolley bags that involves a
huge investment of around 500 pounds. This forecast for 5 years shows positive cash inflows
which mean that company would be earning sufficient amount of profits from this business.
Contingency Plan
Long Term: In future if the project is successful then the chances of expansion is increases.
It means AMA SOLUTIONS LTD try to expand the business at different country so that it
will help to increase the financial performance of a company
Short Term: In its short term plan, business try to add new features in its business operations
so that it will help to attract range of customers towards it. Such that it will introduce the
leather bags, hard plastic bags which will be in trend in future. Hence, adding new features to
the business will assist to increase the financial performance and sustain the goodwill in the
market.

REFERENCES
Books and Journals
Kanten, I.K. and Darma, G.S., 2017. Consumer Behaviour, Marketing Strategy, Customer
Satisfaction, and Business Performance. Jurnal Manajemen Bisnis. 14(2). pp.143-
165.
Key, T.M. and Czaplewski, A.J., 2017. Upstream social marketing strategy: An integrated
marketing communications approach. Business Horizons. 60(3). pp.325-333.
Kingsnorth, S., 2019. Digital marketing strategy: an integrated approach to online
marketing. Kogan Page Publishers.
Morgan, N.A. and et.al., 2019. Research in marketing strategy. Journal of the Academy of
Marketing Science. 47(1). pp.4-29.
Olson, E.M., and et.al., 2018. The application of human resource management policies within
the marketing organization: The impact on business and marketing strategy
implementation. Industrial Marketing Management, 69, pp.62-73.
Patrutiu-Baltes, L., 2016. Inbound Marketing-the most important digital marketing
strategy. Bulletin of the Transilvania University of Brasov. Economic Sciences.
Series V. 9(2). p.61.
Taoketao, E. and et.al., 2018. Does sustainability marketing strategy achieve payback profits?
A signaling theory perspective. Corporate Social Responsibility and Environmental
Management. 25(6). pp.1039-1049.
Varadarajan, R., 2020. Customer information resources advantage, marketing strategy and
business performance: A market resources based view. Industrial Marketing
Management.