Warehouse Construction Store: Business Plan, Financial Analysis

This project provides a detailed business plan for a new warehouse construction store, outlining its business description, structure, and the services it offers. The plan includes a comprehensive market analysis, assessing competitors like Kier Group and Interserve Plc, and exploring market trends. The document delves into the company's operations, highlighting its technology plan, management, and commitment to social responsibility and sustainability. Financial data, including sources of finance, personal survival budgets, cash flow statements, and balance sheets, are presented with sales forecasts and profit margins. The analysis covers various aspects, from unit sales and revenue to gross profit and average costs of goods sold, offering a complete financial overview of the business. The project also includes development milestones and an exit strategy, providing a holistic view of the warehouse construction store's operations and financial viability.

Warehouse construction store

BUSINESS DESCRIPTION AND HISTORY
The new warehouse construction store is considered to be the multinational infrastructure
group in United Kingdom with capabilities in the construction services, infrastructure investment
and the support services. This will be conductingbusinesses across United Kingdom, United
States, Ireland, South East Asia and Canada. Aim of this new warehouse is to become a leading
international infrastructure group. It develops finance and also maintains the innovative
infrastructure that underpins the daily life and also enables the economic development.
Basically, a fund of £50,000 was established for the new warehouse construction store.
The two directors were a trained mechanical and electrical engineer who are planning to launch
it in successful manner.Basically, the different range of services will be offered by this type of
business is directly linking to construction site and so on.
BUSINESS STRUCTURE
The new warehouse construction store, is going tocarry a crucial organizational structure and that
is decentralized and devolved structure, but within the group principles and policy framework.
Basically, this organization is going to hold different levels of management where unit managing
directors and their boards comes at the top level and managers do comes under medium level and
lastly at the lower level management employees and other staff specifically works based on the
task given to them by the top level management.Away with this, organizational structure is
supported by different organizations as well like environmental steering groups, safety boards,
qualified safety and environmental advisors, that may help them in enhancing the overall
expertise and decision-making process as well.
PRODUCT OR SERVICE DESCRIPTION
The new warehouse construction store gives range of the innovative switchgears and also
power distribution substation. The product of the new warehouse construction store consist
electrical switchgear, SCADA protection, system commissioning, HV and LV cabling and Fibre
cabling solutions. Construction and civil engineering –Raynesway, Off-site Solutions., Pipe
fabrication and installation, Residential property management and development, Specialist

structural repair and maintenance, Structural steelwork manufacturing, Switchgear
manufacturing, Biodiversity services and so on are said to be some of the crucial services offered
by The new warehouse construction store.
MARKET ANALYSIS AND TRENDS
Competitor 1: Kier Group
Strengths
 It has low cost structure and also sells
its product at minimum cost.
 It has strong relationship with dealers.
Weaknesses
 Significant proportion of property owns
is rented than buy.
 Kier has the low level of the assets as
comparison to the current liabilities.
Opportunities
 It has an opportunity to enhance
number of the internet users in all over
world.
 It can upgrade technology that helps in
better collection of customers data.
Threats
 The technological development through
rivals.
 Increasing number of competitors.
Competitor 2: Interserve Plc
Strengths
 It has been generate the positive returns
on capital expenditure.
 Interserve plc has strong financial
position with the consecutive profit.
Weaknesses
 It is spending more than average
research and the development
expenditure within construction sector.
 There is lack of the financial planning
related to cash flows leading to the
circumstances.
Opportunities
 It can increase number of the users on
social media worldwide.
Threats
 Large number of the players has been
entered in construction industry.

 The reduction in government tax rate is
effective as fewer amounts would
expense out as tax.
 Fluctuation interest rate does not give
stable economic and financial
environment.
OPERATIONS
The new warehouse construction store, is delivering ample number of services like it will
bepioneering new technologies along with transforming the constructive environment at United
Kingdom's construction market. Company has invested among different areas like sustainability
to build locally so that communities can directly get connected with infrastructures.Basically, the
services that are specifically being provided byThe new warehouse construction store are directly
linking with infrastructures, multi-story buildings and so on.Highway services, asset
Management, structural strengthening, refurbishment, modular systems, civil engineering and so
on are also considered to be the part of operations withinThe new warehouse construction store.
TECHNOLOGY PLAN
MANAGEMENT AND ORGANIZATION
SOCIAL RESPONSIBILITY AND SUSTAINABILITY
The work of new warehouse construction store increases physical surroundings. This
provides education, safety, transport and other social services. The organization feels it is
responsible for expanding to the wider society under which business works the positive effect its
work has on the life of consumers. The sustainability plan of a company outlines how workers,
clients, society and shareholders can achieve long-term economic, social as well as
environmental performance. This is fully aligned to the last objectives of the business and seeks
to further integrate sustainability into all our activities through a strong environment. Strategy is
focused on three pillars of profitable (economic), environmental and healthy (social) societies.
Both workers have opportunity to give something back to local areas for up to two days a year.

This had brought the societies in which they work many social benefits. An extra £190,178 was
provided for charitable causes for United Kingdom and Ireland.
DEVELOPMENT, MILESTONES AND EXIT PLAN
FINANCIAL DATA
Sources of finance:
Long term sources:
These are the sources which have liability to payoff all the principal amount after a year.
Sources Amount (£)
Long term:
Loan from bank
Loan from financial institutions
Trade credit from constructor of warehouse
Owner’s equity:
Capital
Land
Other sources:
Income from subsidiary company (Annually)
Shares in other company
Total
600,000
200,000
150,000
250,000
1,000,000
300,000
150,000
2,650,000
Personal survival budget:
Personal income
Description
(as
required)
Monthly net income
(£)
Annual net
income (£)
Employment (net income) £10,000 £120,000
Benefits payments £1,000 £12,000
Income from other subsidiary company £25,000 £300,000
Dividend £100 £1,200
Total income across all sources: £36,100 £433,200
Personal expenses Description
(as required)
Monthly net expenses
(£)
Annual net
expenses (£)
Rent or mortgage payments £3,500 £42,000
Council tax £5,000 £60,000

Utilities £4,000 £48,000
Phone and internet £1,500 £18,000
TV License £200 £2,400
Personal and property insurance £2,100 £25,200
Grocery shopping £1,200 £14,400
Transport costs £1,800 £21,600
Car tax and insurance £1,200 £14,400
Subscriptions £550 £6,600
Clothing £800 £9,600
Leisure and entertainment £1,000 £12,000
Money put into savings £5,000 £60,000
Total expenses across all areas: £27,850 £334,200
YOUR MONTHLY BALANCE YOUR ANNUAL BALANCE
£8,250 £99,000
Cash flow statement:
Monthly cash flow statement:
Operating activities £
Net Income before Extraordinariness £35,500
Depreciation, Depletion & Amortization
Depreciation and Depletion £15,000
Amortization of Intangible Assets £2,000
Deferred Taxes & Investment Tax
Credit £1,500
Deferred Taxes £4,000
Investment Tax Credit
Other Funds £1,500
Funds from Operations £48,500
Extraordinariness
Changes in Working Capital £3,000
Receivables £1,200
Accounts Payable £2,000
Other Assets/Liabilities £4,700
Net Operating cash flow £37,600
Balance sheet:
Assets

Current assets
Cash £45,000
Bank £800,000
Accounts receivables £14,000
Bad debt £12,000
other receivables
Inventories £15,000
Total current assets (A) £862,000
Fixed assets
Property, plant and equipment £25,000
Warehouse
£1,500,00
0
Land
£1,000,00
0
Computer software and equipment £30,000
Goodwill £500,000
Total fixed assets (B)
£3,055,00
0
Total Assets (A + B)
£3,917,00
0
Liabilities & Shareholders'
Equity
Current liabilities
Short term debts £90,000
Accounts payable £150,000
Accrued payroll £60,000
Total current liabilities (A) £300,000
Long term liability
Bank loan £600,000
Non financial institute debt £200,000
Total long term liabilities (B) £800,000
Equity shares
£2,779,40
0
Retained earnings £37,600
Total equity ( C )
£2,817,00
0
Total liabilities (A+B+C)
£3,917,00
0
Sales forecast

[Warehouse construction]
Sales Forecast

Year 1
Units Sold Jan-20 Feb-
20
Mar-
20
Apr-
20
May
-20
Jun-
20
Jul-
20
Aug
-20
Sep-
20
Oct-
20
Nov-
20
Dec-
20
Total Units
Sold
Product/
Service A 500 525 550 575 550 525 525 550 575 600 650 650 6775
Product/
Service B 1500 1000 1000 1250 1250 1500 1500 1750 2000 2500 3000 3000 21250
Product/
Service C 150 200 250 300 350 400 400 350 350 300 300 300 3650
Unit Price Avg Unit
Price
Product/
Service A £19.99 £19.99 £19.9
9
£19.9
9
£19.
99
£19.
99
£19.
99
£19.
99
£19.
99
£19.
99
£19.
99
£19.
99 £19.99
Product/
Service B £14.99 £14.99 £14.9
9
£14.9
9
£14.
99
£14.
99
£14.
99
£14.
99
£14.
99
£14.
99
£14.
99
£14.
99 £14.99
Product/
Service C £49.99 £49.99 £49.9
9
£49.9
9
£49.
99
£49.
99
£49.
99
£49.
99
£49.
99
£49.
99
£49.
99
£49.
99 £49.99
Sales
Growth
Rate
Avg
Growth
Rate
Product/
Service A 0% 5% 5% 5% -4% -5% 0% 5% 5% 4% 8% 0% 2%
Product/
Service B 0% -33% 0% 25% 0% 20% 0% 17% 14% 25% 20% 0% 8%
Product/
Service C 0% 33% 25% 20% 17% 14% 0% -
13% 0% -
14% 0% 0% 8%
Revenue (Units Sold * Unit
Price)
Total
Revenue
Product/
Service A £9,995 £10,49
5
£10,9
95
£11,4
94
£10,
995
£10,
495
£10,
495
£10,
995
£11,
494
£11,
994
£12,
994
£12,
994 £135,432
Product/
Service B
£22,48
5
£14,99
0
£14,9
90
£18,7
38
£18,
738
£22,
485
£22,
485
£26,
233
£29,
980
£37,
475
£44,
970
£44,
970 £318,538
Product/
Service C £7,499 £9,998 £12,4
98
£14,9
97
£17,
497
£19,
996
£19,
996
£17,
497
£17,
497
£14,
997
£14,
997
£14,
997 £182,464
Total
Revenue
£39,97
9
£35,48
3
£38,4
82
£45,2
29
£47,
229
£52,
976
£52,
976
£54,
724
£58,
971
£64,
466
£72,
961
£72,
961 £636,433
Unit COGS Avg COGS
Product/
Service A £4.50 £4.50 £4.50 £4.50 £4.5
0
£4.5
0
£4.5
0
£4.5
0
£4.5
0
£4.0
0
£4.0
0
£4.0
0 £4.38
Product/
Service B £3.10 £3.10 £3.10 £3.10 £3.1
0
£3.1
0
£3.1
0
£3.1
0
£3.1
0
£3.1
0
£3.1
0
£3.1
0 £3.10
Product/
Service C £1.55 £1.55 £1.55 £1.55 £1.5
5
£1.5
5
£1.5
5
£1.5
5
£1.5
5
£1.5
5
£1.5
5
£1.5
5 £1.55
Margin Per
Unit
(Unit Price - Unit
COGS)
Avg
Margin
Product/
Service A £15.49 £15.49 £15.4
9
£15.4
9
£15.
49
£15.
49
£15.
49
£15.
49
£15.
49
£15.
99
£15.
99
£15.
99 £15.62
Product/
Service B £11.89 £11.89 £11.8
9
£11.8
9
£11.
89
£11.
89
£11.
89
£11.
89
£11.
89
£11.
89
£11.
89
£11.
89 £11.89
Product/
Service C £48.44 £48.44 £48.4
4
£48.4
4
£48.
44
£48.
44
£48.
44
£48.
44
£48.
44
£48.
44
£48.
44
£48.
44 £48.44
Gross
Profit
(Revenue - COGS or Margin Per
Unit * Units Sold)
Total
Gross
Profit
Product/
Service A £7,745 £8,132 £8,52
0
£8,90
7
£8,5
20
£8,1
32
£8,1
32
£8,5
20
£8,9
07
£9,5
94
£10,
394
£10,
394 £105,895
Product/
Service B
£17,83
5
£11,89
0
£11,8
90
£14,8
63
£14,
863
£17,
835
£17,
835
£20,
808
£23,
780
£29,
725
£35,
670
£35,
670 £252,663
Product/
Service C £7,266 £9,688 £12,1
10
£14,5
32
£16,
954
£19,
376
£19,
376
£16,
954
£16,
954
£14,
532
£14,
532
£14,
532 £176,806
Total Gross £32,84 £29,71 £32,5 £38,3 £40, £45, £45, £46, £49, £53, £60, £60, £535,363

Profit 6 0 20 01 336 343 343 281 641 851 596 596