Business Design Report: Financial Analysis and Market Strategy

This report provides a comprehensive analysis of a small business plan, focusing on the fictional Body Fit Pty Ltd, a fitness center. It begins with an overview of financial projections, including key highlights of the financial performance, profit and loss statements, and balance sheets, while also examining the business's performance measures. The report then delves into the business's operational aspects, covering stock recording, legal compliance, quality systems, and technology implementation. Part 2 provides detailed business specifics, including registration details, organizational structure, key personnel, products and services, and risk management. It also incorporates market research, competitor analysis, and advertising strategies to assess the business's market position. Furthermore, the report addresses financial considerations, including cash flow management, stakeholder communication, and strategies for debt collection. Overall, the report assesses the business's strengths, weaknesses, and potential areas for improvement, culminating in an action plan and financial review. The report is a useful resource for students studying entrepreneurship.

Small Business: Business design

Table of Contents
PART 1........................................................................................................................................................................................................1
Key highlights of financial projection.....................................................................................................................................................1
Key highlights of P&L a/c.......................................................................................................................................................................2
Key highlights of balance sheet...............................................................................................................................................................2
Measuring business success & decisions.................................................................................................................................................3
Stock recording & control........................................................................................................................................................................3
Legal & regulatory compliance................................................................................................................................................................3
Quality system..........................................................................................................................................................................................3
Performance measures.............................................................................................................................................................................3
Technologies/innovation..........................................................................................................................................................................3
Operations & revenue control system......................................................................................................................................................4
Suggestions for improvement..................................................................................................................................................................4
Technical & specialist skills....................................................................................................................................................................4
Financial backers requirement.................................................................................................................................................................4
Strategies for debt collection & debtor’s contingency.............................................................................................................................4
Cash Flow Management...........................................................................................................................................................................5
Stakeholders Communication..................................................................................................................................................................5
PART 2........................................................................................................................................................................................................5
BUSINESS DETAILS.................................................................................................................................................................................5
Registration details...................................................................................................................................................................................5

Business premises....................................................................................................................................................................................6
Organization chart....................................................................................................................................................................................6
Management & ownership.......................................................................................................................................................................6
Key personnel..........................................................................................................................................................................................7
Products/services....................................................................................................................................................................................10
Innovation..............................................................................................................................................................................................11
Insurance................................................................................................................................................................................................11
Risk management...................................................................................................................................................................................11
Legal consideration................................................................................................................................................................................12
Operations..............................................................................................................................................................................................12
Sustainability plan..................................................................................................................................................................................14
THE MARKET..........................................................................................................................................................................................15
Market research......................................................................................................................................................................................15
Market targets........................................................................................................................................................................................15
Environmental/industry analysis............................................................................................................................................................15
Customers...............................................................................................................................................................................................17
Competitors............................................................................................................................................................................................19
Advertising & sales................................................................................................................................................................................20
THE FUTURE...........................................................................................................................................................................................21
Action Plan.............................................................................................................................................................................................22
THE FINANCES.......................................................................................................................................................................................22
Key objectives & financial review.........................................................................................................................................................22

REFERENCES..........................................................................................................................................................................................24
APPENDIX................................................................................................................................................................................................26
Appendix 1.............................................................................................................................................................................................26
Appendix 2.............................................................................................................................................................................................26
Appendix 3.............................................................................................................................................................................................26
Appendix 4.............................................................................................................................................................................................27
Appendix 5.............................................................................................................................................................................................28
Appendix 6.............................................................................................................................................................................................30

PART 1
Key highlights of financial projection
It is expected that the Jungle Gym will have an expected yearly sales value worth $536,650 at a gross profit of $378,690 (71%)
and net profit of $109,869 respectively for the 1st financial year. Balance sheet expects an equity growth from $104,905 to $214,774 &
$345,949 and all the debts will be cleared till 2nd year so that available cash funds can be used in the business for further business
opportunities exist in the market. As business sales volume is expected to grow from 5900 to 7500 during peak load in every month @
7.46 sales price, Jungle Gym will definitely have strong cash position.
Key highlights of P&L a/c
Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec
-20000
-10000
0
10000
20000
30000
P&L result-Actual
Sales Total expenditures Net profit
 Jungle Gym’s sales showcase rising trend till the end of May to $22,990 and thereafter, declined to $19,750 in August and
afterwards, again reflect growing trend with the annual turnover of $243,610 which is substantial different from the expected
sales of $536,650.
1

 In the beginning period, its total expenditure was $24,871 due to high accounting & legal charges worth $1,775 and thereafter
remains constant to $23,346.
 Due to overrun expenditure beyond the sales value, firm has incurred net loss except only in the month of Oct and Nov at a
profit of $494 and $3,304 respectively shows poor performance. In the whole year, Jungle Gym has reported an annual profit
of $38,067 which is less than projected return of $109,869.
Key highlights of balance sheet
 Jungle Gym’s SOFP reported poor cash management as in 2016, its cash balance dropped down from $39,810 to $1203.
 In the non-current assets, firm have L&B worth $120,000 and P&E has been depreciated by $9600 with a closing balance of
$40,400.
 Jungle Gym has paid its secured loans as a result; it has been declined from $104,905 (equal to projected) to $54,553.
Measuring business success & decisions
After examining the results, it becomes clear that business did not operated as planned and Jungle Gym’s managers have to
make plans for boosting sales by attracting crowded audiences (Goldmann, 2017). Moreover, by putting cost control measures and
tighten control over the daily operations, return can be maximized and projected results can be achieved.
Stock recording & control
Looking to the financial statements, there was no opening & closing inventory items recorded. However, for the purpose of
inventory control, Jungle Gym has planned to implement electronic system through POS (Point of Sale) so that every transaction will
be automatically posted into the system.
Legal & regulatory compliance
Yes, business has successfully adhered with the legal requirement and applied necessary principles of risk management,
assessment, registration, license & permits (PAYG, GST, ABN, TFN), industrial code of practice and others. Besides this, Workplace
2

Health & Safety policies (WHS) have been adequately followed ranked 10 out of 10 for hazard management by maintaining First Aid
& CPR certification of the workers and others.
Quality system
Jungle Gym targeted to offer high quality products, equipment & services. Owing to this, it is decided to implement QA
system to meet industry standard along with the ongoing continuous improvement technique (Goldmann, 2017).. It is ranked to 8
lower than expected ranking of 9 which suggest conducting customer satisfaction survey & staff survey for bringing improvements.
Moreover, QA system needs to be reviewed twice in a year to satisfy customer expectations.
Performance measures
Company reported net loss of 15.63% which shows poor performance that can be improved by cost control & sales
maximization plan (Room, 2016).
Technologies/innovation
It is being decided to implement ICT system including EFTPOS system which will be linked with the used accounting system.
EFTPOS system will process credit card, direct debit & cash transactions whereas accounting system process transactions like payroll,
inventory control, general ledger transactions & HR records so as to reduce the unnecessary cost of paperwork and provide
summarized reports to facilitate decision-making. As, Jungle Gym’s technology has been ranked 2 only in comparison to expected
ranking of 8 out of 10. Firm can be suggested to introduce online marketing, membership tracking, on the job staff training for
EFTPOS. For the innovation, it is ranked to 5 whereas expected ranking was 9, recommends that research industry leader’s
consultation & product & equipment marketing needs to be introduced.
Operations & revenue control system
In the operations, Jungle Gym planned to review their price mechanism regularly for the cost management under the revenue
control and also provided enough flexibility at the workplaces to their personnel.
3

Suggestions for improvement
Jungle Gym needs to hire more expertise marketing personnel in the business to meet industry standard. It needs to control
expenditures& cost through continuously overlooking their pricing strategy and make necessary changes (Bibi and Amjad, 2017).
During the worst time, firm can decide to introduce other services also however, during the peak time; staff did not paid attention to
the service users. Therefore, it becomes necessary to train the staff and it is necessary to examine satisfaction level through customer
survey questionnaire to improve their customer services delivery system.
Technical & specialist skills
It is really important for the Jungle Gym to focus on maximizing marketing & technological skills among personnel via
running training sessions.
Financial backers requirement
Yes, it is successfully meet out through timely repayment of loan at monthly installments of $4196.
Strategies for debt collection & debtor’s contingency
No, Jungle Gym’s finance expert has to create the best financial plan for the debt collection & creates a right mix of debt &
equity for sound solvency.
Cash Flow Management
The financial analysis clearly reported poor cash management ($39,810 to $1203) because of ineffective growth in the sales
from casual gym, personal training, membership & fitness as well. Out of these, personal training & gym membership contributed
highest to the total turnover. The result suggest firm to implement cash flow management strategies for assuring sufficient cash
balance to finance daily operations. In this, decisions regarding sales enhancement and expenditure control needs to be made for
successful growth.
4

Stakeholders Communication
Company had provided sufficient details regarding profitability to the stakeholders by producing financial accounts, P&L
however; balance sheet did not provided proper details regarding assets & liabilities.
PART 2
BUSINESS DETAILS
Registration details
Business name Body Fit Pty Ltd
Trading name Body Fit Pty Ltd
Date registered September 1st, 2016
Location registered Brisbane
Business structure Sole proprietorship
ABN 2222222
ACN 46-2222222
GST Registered on Sept, 15th 2016
Domain names Body Fit
License & permits Company registration
BN registration, ABN, TFN, GST, PAYG
Business premises
Business location
5

Brisbane
Size: 800 Square feet, accommodation: 70 people
Buy/Lease: Lease
Organization chart
Management & ownership
Name of owners
Robert Sinclair
Details of management and ownership:
6
Owner/
Entrepreneur-
Manager
HR manager
Marketing
expert Operational
manager /Lead trainer

Robert Sinclair alone will be the owner of the business and handle the top managerial position, hence, make policies rules and
decisions.
Experience
 2 year experience in Marriott hotel & resort
 3 year managerial experience in a retail business
 5 year management experience in a Fitness Centre at local & international field
Key personnel
Current staff
Job Title Name Expected staff
turnover
Skills or strengths
Marketing professional Mr. Jack 12 month Excellent marketing knowledge
Good communication
Professional degree in the field of marketing
Minimum 3 year experience in marketing
Excellencies award
HR manager Mr. William 12 month Minimum 5 year experience in the management field
MBA in HR
7

Conflict management skills
Good communication & decision making skills
Operational manager Mr. Noah 12 month Able to handle with operational issues
Sound managerial & leadership skills
Good analytical & decision making skills
Minimum 5 year experience & award in respective
field
Required staff
Job Title Quantity Expected staff
turnover
Skills necessary Date required
Marketing
professional
1 3 yr  Excellent marketing knowledge
 Good communication
 Professional degree in the field
of marketing
 Minimum 3 year experience in
marketing
 Excellencies award
October, 2017
8

HR manager 1 3 yr  Minimum 5 year experience in
the management field
 MBA in HR
 Conflict management skills
 Good communication & decision
making skills
October, 2017
Operational
manager
1 3 yr  Able to handle with operational
issues
 Sound managerial & leadership
skills
 Good analytical & decision
making skills
 Minimum 5 year experience &
award in respective field
October, 2017
Lead trainer 1 4 Yr  4-5 Yr experience October, 2017
Gym trainers 4 5 Yr  Certificate IV in Fitness October, 2017
Receptionist 1 2 Yr  2 year experience October, 2017
Recruitment options
9

 Advertisement in the local newspaper
 Recruitment consultancies
Training programs
 Induction
 7 days initial training program for all the gym trainers
 Further trainings sessions as per TNA (Training need assessment)
Skill retention strategy
 Delegation of authorities
 Staff performance monitoring
 Number of visitors in Gym
 Skill testing & assessment
Products/services
Product/Service Description
Exercise machines Tredmils, Stepmils, Steppers, Cardiovascular & weight training equipment, Stairmaster,
aerobic trainers, Bootcamps
Personal training Experienced trainer will provide needed services and personalized training to the users
Gym membership Membership cards
10

Market position
Personalized high quality products & services and cost leadership strategy will be the key point of our differentiation plan from
competitors along with the relaxed environment to deliver great value for money (McKeever, 2016).
Unique selling preposition:
 High quality personalized products & services
 Competitive charges
 Experienced trainers
 Perfect location
Anticipated demand
Looking to the industry trend and consumer preferences to stay fit, it is being projected that the restaurant will serve around a
crowded customer base to in the first year which will be grow @ 10% (Hiduke and Ryan, 2013).
Pricing strategy
Cost plus pricing so that competitive prices can be set and also all the cost can be get back and also assures some return (Bull, J.
W. and et.al.,2016.).
Value to customer
 Necessity products & services to stay fit.
 Competitive prices & superb quality services will provide great value to the end users
11

Growth potential
Demand is expected to grow @ 10% per annum.
Innovation
R&D/innovation activity
R&D focuses on purchasing latest exercising machinery & gym equipments and the responsibility will be delegated to
technical expert (Wentzensen and Wacholder, 2013).
IP strategy
Innovations will be protected through patent.
Insurance
 Workers compensation will be created at an annual premium of $200 and came into force from the date of contract.
 Professional indemnity & Key person insurance will be made on which $500 annual premium needs to be paid.
 Business assets: All the equipments & machinery will be insured so as to recover possible damage or loss.
 Business revenues: No such insurance has been made.
Risk management
Risk Likelihood Impact Strategy
Property damage/Accidental loss Likely High  Smoke alarms
 Fire extinguishes
 CCTV camera
12

 Evacuation plans
 Insurance
 Sprinkler system
Conflicts with the owner Likely Medium  Maintaining good relationship with the
centre owner
 Legal consultation
Key personnel loss Highly Likely High  Skill transfer plan
 Key person insurance
 Short term contract
Legal consideration
Licensing, registration, Workplace Health & Safety, competition law, lease contract, loan documentation, ABN, TFN and GST
Operations
Production process: The planned business do not carry out any manufacturing activities, it just delivers excellent personalized fitness
facilities to the users through hiring experienced Gym trainers (Doganova and Eyquem-Renault, 2009).
Suppliers: Equipment & machinery suppliers, furniture suppliers and insurers
Plant & equipment
Equipment Purchase date Purchase price each Running cost
13

Tredmill 2 $3000 Regular
maintenance
WattBike 1 $3200 Annual
maintenance
check
powerRack 2 $2800 Regular
maintenance
Conept 2 Rower 3 $2000 Under warranty
Flat and incline bench 2 each $500 Regular
maintenance
Computer 1 $3500 Under warranty
Bumper plates 2 $500 Annual
maintenance
check
Wall balls 5(6 kg) $70 Annual
maintenance
check
Dumbells 1 $3200 Annual
maintenance
14

check
Signs 2 $100 Replacement
Other $3000
Inventory
No stock in hand
Technology (software)
 EFTPOS software
 Accounting system
 ERP system for inventory tracking
 Point of Sale
Trading hours
10 Hours open in all the weeks
Communication channels
 Telephonic calling
 Text messages
 Social media marketing
Payment types: Cash and Cheque
15

Credit policy: Suppliers will be negotiated for making delayed payment as per credit terms & conditions.
Warranties & refunds: No refund and warranty policy
Quality control: Quality assurance & management policy, replacement & maintenance, safety & security
Membership & affiliations: Not exist
Sustainability plan
Environmental/resource impacts: No impact on ecological integrity,
Community impact & engagement: It will serve the huge audience base both male & female and contribute towards
improving their health standards so as to provide them better living standard (Blank, 2013).
Risk/constraints: Environment does not bring any risk.
Strategies: The business will not have any environmental hazards, still, effective use of resources i.e. water, and electricity etc.
will be maintained.
Action plan: To take steps to minimize the electricity and water usage consumption by 10% till the end of 2st year.
THE MARKET
Market research
Secondary analysis has been done to examine the pattern of consumer demand and their healthy lifestyle requirement.
Through this, it is founded that Australian spend around $8.5 bn in a year on their fitness necessities, gym membership, sports and
16

other fitness activities (Elsworth, 2017). Australian Bureau of Statistics reported that in Australia, women participation rate in the
fitness aerobics is significantly higher than male (see below).
Market targets
 To achieve break-even point promptly through maximizing the consumer base
 To maximize sales through consumer awareness & by delivering excellent health fitness services
Environmental/industry analysis
17

Youth between 18-34 years reported high frequency to 28.9% and 23.2% in gym and other fitness activities to stay fit.
18

As per the details, in Australia, male reported potential demand for the fitness and gym centers to 1,448,420, however,
projected female participation in the fitness centre is projected to 1,875,194 indicates high growth potential of the sector (Profile of
fitness industry in Australia, 2015).
Customers
Customer demographics: Demographic segmentation, Target customer: Both male and female lies in the age group of 18-34 years
Key customers: Local residents of Brisbane (25-34 year)
Customer management:
 Best quality services
 Latest gym equipments
 Personalized training
 Competitive charges
19

SWOT analysis
Strength:
 Good customer base
 Experienced & competent trainers
 Quality services
 Latest equipments
Weaknesses
 Resource constraints
 New set up
 Lack of awareness among target audience
Opportunity
 Expansion
 Specialized training
 Affiliation & membership
 High demand
Threats
 Competition from existing fitness centers
 Scheduling issues
 Specialized fitness centers like for Ladies only
20

 Sudden demand volatility due to discretional income
Competitors
Competitor details
Competitor Established
date
Size Market
share (%)
Value to
customers
Strengths Weaknesses
The Pole Gym;
Brisbane City
NA 1000 sq
meter
15% Portfolio of Fun,
Dance & Fitness
Unlimited training
Specialized courses
Casual classes
High prices
($240n per 6
week)
Specialized in
pole gym only
Jetts Brisbane CBD NA 700 sq
meter
12% Membership at
$14.95 price only
for a week
Free Direct Debit
membership
Best range of
cardio
equipments,
loaded resistance
Professional trainers
Own franchise
24/7 around world
250 Gyms around the
globe
No small group
training
Success greatly
depends upon
personal trainers
21

machine,
functioning
training etc.
Dundee’s Boxing &
Fitness Gym West
End
NA 850 sqm 10% Inspiring and
encouraging
trainers
Accredited
boxing courses
Tremendous health &
fitness services
Outstanding boxing
(approved boxing
courses)
World championship
strength
Conditioning Coach
Award
Relaxed environment
Scheduling issues
only
Premium prices
Advertising & sales
Advertising & promotional strategy
Planned promotion /advertising
type
Expected business improvement Cost ($) Target
date
22

TV ads Raise awareness and boost demand $2000 Year 1
Print media Raise awareness and boost demand $2600 Year 1
Social media advertisement Raise awareness and boost demand $3000 Year 1
Sales & marketing objectives
 Maximize consumer demand
 High return
 Sound competitiveness
Good return on investment
USP
 High quality personalized products & services
 Competitive charges
 Experienced trainers
 Perfect location
Sales & distribution channels
Channel type Products/services Percentage of
sales (%)
Advantages Disadvantages
Sales through our
fitness centre
All the fitness services,
aerobics, gym facilities
100% Our physical location will be
near to the localized people
Inconvenient for
outsiders
23

only
THE FUTURE
Vision:
To become the most preferred choice of the target audience base in Brisbane
Mission:
Our mission is to provide a better life standard to the people through providing them best quality fitness services by having the best
portfolio of latest gym equipments
Goals/Objectives
 Having highly experienced, encouraging and professional trainer
 Excellent management through having experienced lead trainer
 To deliver top quality fitness facilities to provide better living standards to the people
 To purchase latest gym equipments in the fitness centre
 To charge a competitive prices for all the people
Action Plan
Milestone Date of expected completion Person responsible
Due diligence April 31 Accountant
Insurance April 10 Insurance broker
24

License and permits April 18th Manager
Financial plan May 1 Accountant
Arrange settlements June 15 Lawyer
THE FINANCES
Key objectives & financial review
Financial objectives
 To gain a minimum return of 15% on the total turnover of the business
 To provide high quality service to the users so as to maximize sales
 To control ongoing business cost so as to generate good return
Finance required: $80,000
Start up budget: Appendix: 1.
Assumptions
 Average selling price: $14
 Customer base is expected to increase @10% p.a.
 Payroll expenditure is probably increased by 5% in year 2.
 Body Fit will spend 4% of sales on the marketing activities.
25

Start up costs: Appendix 2
Balance sheet forecast: Appendix 3
P&L forecast: Appendix 4
Expected cash flow: Appendix 5
Break-even analysis: Appendix 6
26

REFERENCES
Books and Journals
Bibi, N. and Amjad, S., 2017. The Relationship between Liquidity and Firms’ Profitability: A Case Study of Karachi Stock Exchange.
Asian Journal of Finance & Accounting. 9(1). pp.54-67.
Blank, S., 2013. Why the lean start-up changes everything. Harvard business review. 91(5). pp.63-72.
Bull, J. W., & et.al., (2016). Strengths, weaknesses, opportunities and threats: A SWOT analysis of the ecosystem services framework. Ecosystem
services. 17(5). pp.99-111.
Doganova, L. and Eyquem-Renault, M., 2009. What do business models do?: Innovation devices in technology entrepreneurship.
Research Policy. 38(10). pp.1559-1570.
Goldmann, K., 2017. Financial Liquidity and Profitability Management in Practice of Polish Business. In Financial Environment and
Business Development. Springer International Publishing. 9(2). pp.103-112.
Hiduke, G. and Ryan, J., 2013. Small Business: An Entrepreneur's Business Plan. 3rd ed. Cengage Learning.
McKeever, M., 2016. How to write a business plan. Nolo.
Room, R., 2016. Sources of funding as an influence on alcohol studies. The International Journal of Alcohol and Drug Research. 5(1).
pp.15-16.
Wentzensen, N. and Wacholder, S., 2013. From differences in means between cases and controls to risk stratification: a business plan
for biomarker development. Cancer discovery. 3(2). pp.148-157.
Online
27

Elsworth, S.., 2017. Australian spends 8.5m USD on gym membership. [Online]. Available through: <
http://www.news.com.au/lifestyle/fitness/australians-spend-85-billion-a-year-on-gym-memberships-sports-equipment-fitness-
fads/news-story/d0092769eaea24b59aa1b32d86999c98>. [Accessed on 25th August 2017].
Profile of fitness industry in Australia. 2015. [Online]. Available through:
https://fitnessaustralia-production.s3.amazonaws.com/uploads/uploaded_file/file/173496/FAUS843-Industry-Report-2016-
Section-3-Digital.pdf. [Accessed on 25th August 2017].
28

APPENDIX
Appendix 1
Start up costs
Furniture & fixture 12000
Office equipments 18000
Lease 10000
Advertisement and promotion 6000
Insurance 2400
Registration , license & permits 1500
Total fixed costs 49900
Appendix 2
Start up costs
Furniture & fixture 12000
Office equipments 18000
Lease 10000
Advertisement and promotion 6000
Insurance 2400
Registration , license & permits 1500
Total fixed costs 49900
Appendix 3
Balance sheet
Assets
Furniture & fixture 12000
Office equipments 18000
Lease 10000
Current assets
29

Preliminary expense 9900
Working capital 30100
80000
Liabilities
Non-current liabilities
Bank loan 50000
Owners investment 30000
Total liabilities 80000
Appendix 4
Mont
h 1
Mon
th 2
Mon
th 3
Mon
th 4
Mon
th 5
Mon
th 6
Mon
th 7
Mon
th 8
Mon
th 9
Mont
h 10
Mont
h 11
Mont
h 12 Total
Year
2
Personal trainers 9000 9090
9180.
9
9272.
709
9365.
436
9459.
09
9553.
681
9649.
218
9745.
71
9843.
167
9941.
599
10041
.02
11414
2.53
1255
56.8
Membership 6000 6060
6120.
6
6181.
806
6243.
624
6306.
06
6369.
121
6432.
812
6497.
14
6562.
112
6627.
733
6694.
01
76095
.018
8370
4.52
Total sales 15000
1515
0
1530
1.5
1545
4.52
1560
9.06
1576
5.15
1592
2.8
1608
2.03
1624
2.85
1640
5.28
1656
9.33
16735
.03
19023
7.55
2092
61.3
Cost of sales
Personal trainers 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Membership 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Cost of sale 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Gross profit 15000
1515
0
1530
1.5
1545
4.52
1560
9.06
1576
5.15
1592
2.8
1608
2.03
1624
2.85
1640
5.28
1656
9.33
16735
.03
19023
7.55
2092
61.3
Gross margin 100%
100
%
100
%
100
%
100
%
100
%
100
%
100
%
100
% 100% 100% 100% 100%
100
%
Less: Operational
expenditures
Payroll 9200 9200 9200 9200 9200 9200 9200 9200 9200 9200 9200 9200
11040
0
1159
20
Marketing (4%
on sales) 600 606
612.0
6
618.1
806
624.3
624
630.6
06
636.9
121
643.2
812
649.7
14
656.2
112
662.7
733
669.4
01
7609.
5018
8370.
452
30

Utility charges 450 450 450 450 450 450 450 450 450 450 450 450 5400 5562
Insurance 200 200 200 200 200 200 200 200 200 200 200 200 2400 2400
Rent 2083 2083 2083 2083 2083 2083 2083 2083 2083 2083 2083 2083 25000
2500
0
repair &
maintenance 300 300 300 300 300 300 300 300 300 300 300 300 3600 3600
Licensing &
registeration 200 200 200 200 200 200 200 200 200 200 200 200 2400 0
Discounts allowed 150 150 150 150 150 150 150 150 150 150 150 150 1800 1800
Training cost 175 175 175 175 175 175 175 175 175 175 175 175 2100 2100
Depreciation 250 250 250 250 250 250 250 250 250 250 250 250 3000 3000
Staff amenities 200 200 200 200 200 200 200 200 200 200 200 200 2400 2400
Operating expense
13808
.333
1381
4.33
1382
0.39
1382
6.51
1383
2.69
1383
8.94
1384
5.24
1385
1.61
1385
8.04
1386
4.54
1387
1.1
13877
.73
16610
9.47
1701
52.5
Earnings before
interest & tax
1191.
6667
1335.
67
1481.
11
1628.
004
1776.
368
1926.
215
2077.
56
2230.
419
2384.
807
2540.
738
2698.
229
2857.
294
24128
.08
3910
8.85
Loan interest
166.6
7
163.4
6
160.2
4
157.0
1
153.7
7
150.5
2
147.2
6
143.9
9 140.7
137.4
1
134.1
1
130.7
9
1785.
93
1216.
62
Profit before tax
1024.
9967
1172.
21
1320.
87
1470.
994
1622.
598
1775.
695
1930.
3
2086.
429
2244.
107
2403.
328
2564.
119
2726.
504
22342
.15
3789
2.23
Less: tax (20%)
4468.
43
7578.
446
Net profit
17873
.72
3031
3.78
Net profit
percentage
9.40
%
14.49
%
Appendix 5
Pre
operatin
g year
Mont
h 1
Mo
nth
2
Mo
nth
3
Mo
nth
4
Mo
nth
5
Mo
nth
6
Mo
nth
7
Mo
nth
8
Mo
nth
9
Mon
th
10
Mon
th
11
Mon
th
12
Tot
al
Yea
r 2
Cash inflow
31

Start-up capital
(owner's
contribution) 30000
Bank loan 50000
Sales 15000
151
50
153
01.5
154
54.5
2
156
09.0
6
157
65.1
5
159
22.8
160
82.0
3
162
42.8
5
1640
5.28
1656
9.33
1673
5.03
190
237.
5
209
261.
3
Total 80000 15000
151
50
153
01.5
154
54.5
2
156
09.0
6
157
65.1
5
159
22.8
160
82.0
3
162
42.8
5
1640
5.28
1656
9.33
1673
5.03
190
237.
5
209
261.
3
Cash outflow
Furniture & fixture 12000
Office equipments 18000
Lease 10000
Advertisement and
promotion 6000
Insurance 2400
Working capital 30100
Registration ,
license & permits 1500 200 200 200 200 200 200 200 200 200 200 200 200
240
0
240
0
Cost of sale 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Marketing (4% on
sales) 0 600 606
612.
06
618.
180
6
624.
362
4
630.
606
636.
912
1
643.
281
2
649.
714
656.
2112
662.
7733
669.
401
760
9.50
2
837
0.45
2
Utility charges 0 450 450 450 450 450 450 450 450 450 450 450 450
540
0
556
2
Insurance 0 200 200 200 200 200 200 200 200 200 200 200 200
240
0
240
0
Rent 0
2083.
33333
3
208
3.33
208
3.33
208
3.33
208
3.33
208
3.33
208
3.33
208
3.33
208
3.33
2083
.33
2083
.33
2083
.33
250
00
250
00
repair & 0 300 300 300 300 300 300 300 300 300 300 300 300 360 360
32

maintenance 0 0
Training cost 0 175 175 175 175 175 175 175 175 175 175 175 175
210
0
250
0
Staff amenities 0 200 200 200 200 200 200 200 200 200 200 200 200
240
0
240
0
Payroll 0 9200
920
0
920
0
920
0
920
0
920
0
920
0
920
0
920
0 9200 9200 9200
110
400
115
920
Loan installments 0
1128.
95
112
8.95
112
8.95
112
8.95
112
8.95
112
8.95
112
8.95
112
8.95
112
8.95
1128
.95
1128
.95
1128
.95
760
9.50
2
760
9.50
2
Tax 0
446
8.43
757
8.44
6
Cash outflow 80000
14537
.2833
3
145
43.2
8
145
49.3
4
145
55.4
6
145
61.6
4
145
67.8
9
145
74.1
9
145
80.5
6
145
86.9
9
1459
3.49
1460
0.05
1460
6.68
173
387.
4
183
340.
4
Net cash flow
(NCF) 0
462.7
16666
7
606.
72
752.
16
899.
054
4
104
7.41
8
119
7.26
5
134
8.61
150
1.46
9
165
5.85
7
1811
.788
1969
.279
2128
.344
168
50.1
1
259
20.9
Appendix 6
TFC 49900
Average selling price 14
Variable costs 0
Contribution per unit 14
BEP (In value) 3672.2509
33

34