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Business Proposal
The Graphy
The objective of this document is to run Business of Graphy & Paints in United Kingdom. This Business will be run by Naila Khan & Afaq Khan.
Table of Contents
Business Proposal
Executive Summary......................................................................................................................... 4 Objectives: - ................................................................................................................................ 4 Ownership of Business: -................................................................................................................. 4 The Management Team .................................................................................................................. 5 The Market ...................................................................................................................................... 5 Target Market Segment Strategy................................................................................................ 5 Keys to Success ............................................................................................................................... 6 Company Summary ......................................................................................................................... 6 Start-up Summary ........................................................................................................................... 7 Start-up Requirements ................................................................................................................... 8 Working Capital First Year Allocation of Expenses ......................................................................... 9 Human Resource Required ........................................................................................................... 10 Projected Targeted Sales .............................................................................................................. 11 Cost of Material & Services: - ....................................................................................................... 11 Projected Income Statement ........................................................................................................ 12 Projected Cash Flow...................................................................................................................... 13 Breakeven Point ............................................................................................................................ 15 Legal Requirements ...................................................................................................................... 16 Competitive Comparison ...................................................................................................... 16 Competition and Buying Patterns ......................................................................................... 17 Main Competitors ................................................................................................................. 17 Strategy and Implementation Summary .............................................................................. 17 Marketing Strategy ............................................................................................................... 17 Promotion Strategy ............................................................................................................... 17 Pricing Strategy ..................................................................................................................... 18 Sales Strategy ........................................................................................................................ 18 Management Summary ............................................................................................................ 18 Organizational Structure ....................................................................................................... 18 Management Team ............................................................................................................... 18 Break-even Analysis .............................................................................................................. 18 Costing: - ....................................................................................................................................... 20 The Graphy | Confidential Page 2 of 26
Inventory Costing .......................................................................................................................... 20 Renovation Costing ....................................................................................................................... 21 Wall Papering Costing:- ................................................................................................................. 22 Simple Paint Costing:- ................................................................................................................... 23 Texture or Painting with Design Costing: - ................................................................................... 25 Per Sq Foot Cost & Profit: - ........................................................................................................... 26
Business Proposal
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Executive Summary
Business Proposal
The Graphy will provide top-quality handmade painting/wall painting/ wall designing services in UK. We believe that our business plan with skilled and experienced Team can achieve our desired results. This Feasibility covers the miscellaneous section of business concept development, business management, Sales, Services marketing, and finances. Our business comes under the category of Labor Services. The company's principal team see each contract as an agreement not between a business and its customers, but between partners that wish to create a close and mutually beneficial long-term relationship. This will help to provide greater long-term profits through referrals and repeat business.
Objectives: Our objectives for the five years of operation include: Innovation in Home Decoration Industry To serve customers with top quality labor and services To achieve sales revenues of approximately .620,000 by year three. To achieve a customer mix of 30% commercial/60% residential building contracts per year. To expand operations to target congested areas of London To work hard and continuously with focus on Quality.
Ownership of Business: The Graphy is a privately owned partnership with each of the partner hold an equal share in the company as below:
S. No
01 02
Designation
Director Manager
Share %
50% 50%
Amount ()
200,000.00
100,000.00 100,000.00
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Business Proposal
The Management Team
The Graphy will be run by team of Director and Manager, Naila Khan and Afaq Khan. Naila Khan will hold the office and would deal with all operational activities like sales, Marketing, Finance and Afaq Khan would deal in direct facilitation who is currently dealing this business in.
The Market
The market can be divided into two market segments, Residence and companies.
The Mission:
The mission of the Graphy is to provide top-quality handmade painting/wall painting/ wall designing services in UK provide. The company will seek to provide these services in the most timely manner and with an ongoing comprehensive quality control program to provide 100% customer satisfaction.
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Keys to Success
Business Proposal
Keys to success for our business will include: Top Quality Services by using technology for ordering and feedback for greater Customer Satisfaction Customer Retentions Timely Services Competitive Prices Profit Sharing Long Term Partnership
Company Summary
The Graphy is a start-up limited liability company consisting of team of two people currently, one with operational experience and one with skilled resources. The company has been formed to take advantage of the perceived weakness and inadequacies of regional companies in terms of quality and customer satisfaction. The Graphy will be a partnership between Ms. Naila Khan and Mr. Afaq Khan. The principles in the company will be investing significant amounts of their own capital into the company to cover start-up costs and future growth. The Graphy will be located in a rented suite in the London, Hackney road, London. The facilities will include a reception area, office for the Manager and Director, storage area for inventory. The company plans to capture individual contracts to capture short-term residential contracts. Its longterm profitability will rely on focusing on commercial contracts that will be obtained through strategic alliances and a comprehensive marketing program.
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Start-up Summary
Business Proposal
S. No.
01
02
03
04
05 06 07 O8 06 07 08 09 10 11
Legislation(With help of solicitor) Company Registrations/Registration with HMRC Company Registrations as partnership (Notary Public) NIN Registration VAT Registration Licensing Place Office 12*15 Show Room 12*15 Renovation of show Room/godown Furniture and Fixtures Chairs(6), tables(3) Racks(6) Operational Equipment Computers(2) Printer Fax Delivery Van on rent Raw Material Web Site Telephone Internet Installations Marketing fees, accounting fees, trade association dues The marketing fees are the costs associated and advertisement in newspapers, brochures and Interactive Website. The legal fees are for corporate formation and the generation and review of contracts. The accounting fees for licenses and formation of business and maintaining of account for tax purpose.
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Start-up Requirements
Business Proposal
STARTUP COST
Amount () 1000.00 5,000.00 14,870.00 2,200.00
Expense Details Legal Shop Security Furnishing/Renovation of Show Room and Office Furniture and fixtures (tables, chairs, lighting, carpeting, rack) 2 Tables @ 200 = 400 2 Officer Chairs @ 50 = 100 2 Racks @ 150 = 300 Carpeting 900 Sq Feet or 110 Sq Meter @ 990
Lighting 50 Energy Savor Bulbs @ 2 + Labour = 400 Ladder 3 Piece @ 90 Turbine Spray Kit 2 @ 48
Security Camera Inventory Sign Board Web Development Two Computers with Software, printer, fax machine, telephone set Total Start-up Expenses Working Capital in Hand Total Amount Invested
270.00 96.00 200.00 49,387.00 200.00 500.00 1,500.00 64,623.00 135,377.00 200,000.00
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Business Proposal
Year - 1 243,323.04 145,733.09 18,000.00 4,580.00 12,000.00 1,000.00 1,000.00 1,000.00 500.00 1,500.00 300.00 4,800.00 10,115.46 443,851.59
Utilities Bills Electricity 200, Gas 100, Tel 50, Water 380 (Annual)
Rent Legal Expense Stationary Depreciation Web Development Consultancy Insurance Paid to Marketing Company for Leafletting Marketing Company Commission 2% Total Direct and Indirect Expense
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Business Proposal
Requirement of human resource is as follows: Designation Naila Khan 1. Manage Show Room 2. Manage Sales Office 3. Keep record of Inventory 4. To Hold office for finance and Marketing Afaq Khan 1. To Give Services (Painting etc) 2. Receive Payments 3. Coordinating with Marketing Company 4. Manage Customer requirement Labour Labour (Part Time) Total Annual Salary Number 1 Salary () Annually ()
1*1,000 1*500 4
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Business Proposal
Projected Targeted Sales
Targeted Sales
Per Month Per Month Per Month 30% Profit on Per month Jobs Jobs Cost Sale Products / Services Per House Cost Jobs Full House Wallpapering 589.00 3 1,767.00 530.10 2,297.10 Full House Simple Distemper Paint 1,772.20 7 12,405.40 3,721.62 16,127.02 Full House Texture Paint 2,606.99 7 18,248.94 5,474.68 23,723.63 Total Per Month Sale 9,726.40 42,147.75 Annual Material Cost, Service Income & Sale 116,716.84 505,772.97
S. No. 1 2 3
Year - 2 Year - 3
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Business Proposal
Year - 1 505,772.97 505,772.97 243,323.04 145,733.09 389,056.13 116,716.84 Year - 1 18,000.00 4,580.00 12,000.00 1,000.00 1,000.00 1,000.00 500.00 1,500.00 300.00 4,800.00 10,115.46 54,795.46 61,921.38 16,273.55 45,647.83 3,803.99 Year - 2 606,927.56 606,927.56 291,987.65 174,879.71 466,867.35 140,060.21 Year - 2 18,900.00 4,717.40 12,600.00 1,050.00 1,050.00 1,000.00 1,575.00 300.00 5,040.00 12,138.55 58,370.95 81,689.25 24,180.70 57,508.55 4,792.38 Year - 3 Percentage Increase 728,313.07 20% 728,313.07 350,385.18 20% 209,855.65 560,240.82 168,072.25 Year - 3 Percentage Increase 19,845.00 5% 4,858.92 13,230.00 1,102.50 1,102.50 1,000.00 1,653.75 300.00 5,292.00 14,566.26 62,950.93 105,121.31 33,553.53 71,567.79 5,963.98 3% 5% 5% 5% 3% 5% 5% 20%
Net Sales Cost of Goods Sold Raw Material Cost Labour Cost Total Cost of Goods Sold Gross Profit General Administrative & Selling Expenses Salaries
Utilities Bills Electricity 200, Gas 100, Tel 50, Water 380 (Annual)
Rent Legal Expense Stationary Depreciation Web Development Consultancy Insurance Paid to Marketing Company for Leafletting Marketing Company Commission 2% Total Administrative Expenses Net Profit Before Tax Tax according to HMRC Tax Rates for Employer Net Profit After Tax Monthly Profit After Tax
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Business Proposal
CASH FLOW STATEMENT FOR THREE YEAR
Year - 1 200,000.00 505,772.97 705,772.97 Year - 2 182,547.83 606,927.56 789,475.39 Year - 3 216,056.38 728,313.07 944,369.45
Utilities Bills Electricity 200, Gas 100, Tel 50, Water 380 (
Rent Legal Expense Stationary Depreciation Web Development Consultancy Insurance Paid to Marketing Company for Leafletting Marketing Company Commission 2% Total Direct and Indirect Expense Shop Security Renovation Furniture Fixture Security Camera & Sign Board Two Computers, Printers, Fax, Telephones Inventory Total Assets Plus Tax Paid Total Cash Out Flow Cash in Hand After all Expenses Less Drawing Roshina Less Drawing Sajawal Net Cash Flow at End of Year
243,323.04 145,733.09 18,000.00 4,580.00 12,000.00 1,000.00 1,000.00 1,000.00 500.00 1,500.00 300.00 4,800.00 10,115.46 443,851.59 5,000.00 10,000.00 2,200.00 400.00 1,500.00 20,000.00 39,100.00 16,273.55 499,225.14 206,547.83 12,000.00 12,000.00 182,547.83
291,987.65 174,879.71 18,900.00 4,717.40 12,600.00 1,050.00 1,050.00 1,000.00 1,575.00 300.00 5,040.00 12,138.55 525,238.30 24,180.70 549,419.01 240,056.38 12,000.00 12,000.00 216,056.38
350,385.18 209,855.65 19,845.00 4,858.92 13,230.00 1,102.50 1,102.50 1,000.00 1,653.75 300.00 5,292.00 14,566.26 623,191.76 33,553.53 656,745.28 287,624.17 12,000.00 12,000.00 263,624.17
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Business Proposal
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Breakeven Point
Projected Income Statement (GBP) Revenue from Targeted Sales
Business Proposal
Year - 1 193,608.00 193,608.00 89,356.43 59,570.95 148,927.38 44,680.62 Year - 1 18,000.00 4,580.00 12,000.00 1,000.00 1,000.00 1,000.00 500.00 1,500.00 300.00 4,800.00 3,872.16 44,680.00 0.62 0.00 0.62 0.05
Net Sales Cost of Goods Sold Raw Material Cost Labour Total Cost of Goods Sold Gross Profit General Administrative & Selling Expenses Salaries
Uti l i ti es Bi l l s El ectri ci ty 200, Ga s 100, Tel 50, Wa ter 380 (Annua l )
Rent Legal Expense Stationary Depreciation Web Development Consultancy Insurance Paid to Marketing Company for Leafletting Marketing Company Commission 2% Total Administrative Expenses Net Profit Before Tax Tax according to HMRC Tax Rates for Employer Net Profit After Tax Monthly Profit After Tax
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Legal Requirements
1. 2. 3. 4.
Business Proposal
Registering business for NI Number (National Insurance Number) Registering Partnership Business Registering your Business with the Environmental Health Service Registering your business with HMRC department for taxation
Competitive Comparison The painting market is very competitive but our business would bring innovation of handmade designing and calligraphy. The barriers to entry and exit in this market are very low making this an industry with a large number of rival firms with high turnover rates. Buyers have a significant amount of power since they have a large number of companies to choose from. Moreover, services are undifferentiated, which means that customer loyalty is usually low. Painting companies must compete on quality and timeliness of service, customer relations, and price. The Graphy believes that it can improve on the quality and timeliness of services in this industry by instituting procedures that will avoid many of the mistakes that other firms make. This includes delayed schedules and high employee turnover which leads to lower service quality. The company will be equally competitive in price and will maintain close ties with its clients throughout the entire project since each project is a customized job. Through these steps, the Graphy will be able to build up a reputation of better quality service at competitive prices than its competitors. The Graphy Products include:
Full prep work. Dry wall contouring. Fine detailing. Small carpentry work. Specialty wall coatings. Refinishings. Acoustical ceilings. Pressure washing/roof cleaning.
Each project is customized to the wants and needs of the client. Prices are determined by the scope of the project, materials needed, wear and tear on equipment and required profit margin.
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Business Proposal
This industry is highly seasonal. The busiest times are during the summer months where it is easy for a company to become so engaged that it must turn down contracts. During the winter months businesses must focus on marketing to get any contracts at all.
Main Competitors The main competitors for the Graphy include Kolby and Wilson, DMB Enterprises, Sun Painting, and Milbrant Commercial Painters. Each of these competitors is able to achieve a high degree of profitability through marketing, volume or high-end contracts. They pose a significant threat to the Graphy because of their deep pockets and their desire to acquire other painting competitors. The Graphy Painters will compete with these rivals through the use of greater marketing and better service. Strategy and Implementation Summary As stated before, the company will focus on greater service through better scheduling, project management, and greater alignment of personnel by providing profit sharing. The company is seeking to use the most up-to-date communications and scheduling technology between the project manager, foreman, suppliers, and operations personnel to insure that deadlines are met. Furthermore, the company will seek to create a reliable pool of individual painters to draw upon and eventually hire all the painters full time with salary and other compensation. The company also plans to carry out an aggressive marketing plan starting in year three. This includes literature, TV, radio, billboards and strategic alliances with other large contractors that do not have their own painting services. These companies include Marble Construction, Talbot Construction and Burns & Associates. Marketing Strategy The Marketing Strategy would be as below: Promotion Strategy The company will be engaging in an aggressive marketing program that will include e-mails, web site, phone solicitation, and other platforms to generate service awareness, and value proposition. However, as stated elsewhere, the company's immediate goal will be to generate enough profit to pay for such expenses. The marketing plan will go into effect starting in year three. Prior to this the company will use more modest marketing tools such as mailer, promotion of word-of-mouth marketing, and ads such as in the Yellow Pages.
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Pricing Strategy
Business Proposal
The company will price each project based on time, material, and a flat 5-10% profit margin, depending on the segment. In the first year or two, depending on sales, the company will focus more on getting the contracts than on maintaining its pricing structure. Therefore, profit margin may be a little low for the first year or two. Sales Strategy By bringing together Mr.Afaq Khans graphy experience, the company will be able to generate sales in areas. Furthermore, the company's growing marketing program will generate the growth the company needs to survive. Management Summary Management consists of two individuals who have extensive experience in the painting and finances issues. Each individual brings a unique outlook and skill set that will help drive sales and profits. The president and head of operations of the Graphy will be Mr. Naila Khan. Organizational Structure The company will follow a hierarchical structure with Mr. William The Graphy at the top as president and Mr. Anthony The Graphy and Mr. Michael Kruger as department heads. The sales and contracting department along with inventory, expediters, and Q&A will consist of only those individuals until such time as growth of the company will require more people. This is anticipated to occur in year three to five. Management Team Mr.Afaq Khan has been in the painting industry working with residential owners for 15 years. He initially started off with B&B contractors as a carpenter and painter and worked with various companies for the next ten years. Ms. Roshian Roohi is working with a private Bank and has experience of different departments related finance. She has extensive experience from ledger to complete balance statement. Break-even Analysis The Break-even Analysis would give us the idea that how many projects the Graphy must target for, prep, paint and complete each month to cover costs. Because we will provide a customized service with many projects having unique requirements, the estimates of revenue and cost are somewhat arbitrary. Furthermore, the company experiences a high degree of seasonality in its contracts which may result in a number of unprofitable months during the late fall, winter and early spring periods.
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Fixed costs are based on running costs estimated by the officers of the company and include payroll for all employees. Variable costs are based on a 26% estimate of the average sales per unit. The average revenue estimate is based on the consensus of the principal officers who have had many years of experience in the industry and on the realistic assumption of the types of contracts the company will get in the beginning and the requirements needed to complete such projects.
Business Proposal
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Costing: -
Business Proposal
Inventory Costing
S. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Inventory Cost
Price Per Unit 10.00 10.00 9.00 10.00 9.00 24.00 19.00 15.00 40.00 34.00 54.00 130.00 195.00 6.00 11.00 4.57 Qty 100 100 50 50 100 50 200 100 1000 100 100 50 50 50 50 30 100 Amount () 1,000.00 1,000.00 450.00 500.00 900.00 1,200.00 0.00 1,900.00 15,000.00 4,000.00 3,400.00 2,700.00 6,500.00 9,750.00 300.00 330.00 457.00 49,387.00
Description Brush Small (Pack of 5) Brush Medium (2 Inch, Pack of 2) Brush Large (4 Inch, 1 Piece) Brush Ex Large (6 Inch) Design Rollers Zinc Chalk Varnish (1 Litre) Wall Papers (Per Strip Cost) Distemper (5 Litre) Emulsion (5 Litre) Enamel Paints (3 Litre) Texture Colour (For 15 Meter) Texture Colour (For 25 Meter) Filling Pad (1 Inch) Filling Pad (6 Inch) Plaster of Paris (1 Kg) Total Startup Cost
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Renovation Costing
S. No. 1 2 1 3 4 5
Business Proposal
Renovation EXPENSE
Amount () 2,480.00 5,330.00 4,020.00 600.00 100.00 2,340.00 14,870.00
Description Price Per Unit Qty Marble Floor (GBP 62 Per Sq Meter) 62.00 40 Sq Meter Office Partition (GBP 125 Linear Meter) 130.00 25 Meter Marble Floor (GBP 62 Per Sq Meter) 60.00 60 Sq Meter Shelves for Display 120.00 5 Lighting Bulbs 2.00 50 Front Glass (GBP 130 Per Sq Meter) 130.00 18 Sq Meter Total Startup Cost
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Business Proposal
Wall Papering Cost One Room (Size 10*10) Amount () 72.00 8.00 80.00 100.00 180.00 234.00
Description Wall Papers (24 Strips *3) Glue Total Material Cost Service Charge Wall Papering Charges for One Room Charges + 30% Profit
S. No. 1 2 3
Wall Papering Cost One Sitting Room (Size 15*10) Description Wall Papers (32 Strips *3) Glue Total Material Cost Service Charge Wall Papering Charges for Sitting Room Charges + 30% Profit
Wall Papering (Full House Cost) S. No. 1 2 3 Description Two Rooms of (10*10) One Drawing Room (15*10) Total Material Cost Service Charge Wall Papering Charges for Full House Charges + 30% Profit Amount () 160.00 104.00 264.00 325.00 589.00 765.70
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Business Proposal
Amount () 80.00 54.00 7.84 141.84 150.00 291.84 379.39
Description Paint Distemper (5Liter, Two Buckets) Window Enamel Painting Tarpentine Oil Total Material Cost Service Charge Distemper Charges for One Room Charges + 30% Profit
S. No. 1 2 3 4
Simple Painting Cost One Sitting Room (Size 15*10) Description Amount () Paint Distemper (5Liter, Two & Half Buckets 100.00 Window Enamel Painting 54.00 Tarpentine Oil 7.84 Total Material Cost 161.84 Service Charge 200.00 Distemper Charges for Sitting Room 361.84 Charges + 30% Profit 470.39
Simple Painting Cost Kitchen (Size 6*8) S. No. 1 2 3 4 Description Paint Distemper (5Liter, One Bucket) Window Enamel Painting (One Bucket) Tarpentine Oil Total Material Cost Service Charge Distemper Charges for Kitchen Charges + 30% Profit Amount () 40.00 54.00 7.84 101.84 80.00 181.84 236.39
Simple Painting Cost Bathroom (Size 6*8) S. No. 1 2 3 4 Description Paint Distemper (5Liter, One Bucket) Window Enamel Painting (One Bucket) Tarpentine Oil Total Material Cost Service Charge Distemper Charges for Bathroom Charges + 30% Profit Amount () 40.00 27.00 7.84 74.84 70.00 144.84 188.29
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S. No. 1 2 3 4 3
Simple Painting Cost (Full House Cost) Description Two Rooms of (10*10) One Drawing Room (15*10) Kitchen (6*8) Bathroom (6*8) Total Material Cost Service Charge Distemper Charges for Full House Charges + 30% Profit
Business Proposal
Amount () 583.68 361.84 181.84 144.84 1,272.20 500.00 1,772.20 2,303.86
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Business Proposal
Paint with Design (Texture) One Room (Size 10*10) Description Distemper Base (5Liter, Two Buckets) Window Enamel Painting Tarpine Oil Design with Emulsion Paint (Two Buckets) Total Material Cost Service Charge Texture Charges for One Room Charges + 30% Profit
S. No. 1 2 3 4 5
Paint with Design (Texture) One Sitting Room (Size 15*10) Description Distemper Base (5Liter, Two Buckets) Window Enamel Painting Tarpine Oil Design with Emulsion Paint (Two Buckets) Total Material Cost Service Charge Texture Charges for One Sitting Room Charges + 30% Profit
S. No. 1 2 3 4 5
Paint with Design (Texture) One Kitchen (Size 6*8) Description Distemper Base (5Liter, One Buckets) Window Enamel Painting Tarpine Oil Design with Emulsion Paint (Two Buckets) Total Material Cost Service Charge Texture Charges for One Kitchen Charges + 30% Profit
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Business Proposal
Paint with Design (Texture) (Full House Cost) Description Two Rooms of (10*10) One Drawing Room (15*10) Kitchen (6*8) Total Material Cost Service Charge Texture Charges for Full House Charges + 30% Profit
S. No. 1 2 3 3
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