THE BUSINESS PLAN

Do you often get confused when you have to give someone a gift?

Yes

Do you really want something that can eliminate your cOnFuSiOn?

Of course, but how???

DreamZ Unlimited for the first time n your own city Karachi INTRODUCES!!!!!

Prepared for:
Mr. Arbab Naseebullah

Prepared by:
Syeda Dania Saeed Shah

MBA-B-4TH Submission Date:

Dec 9th,2011

Table of Contents
Executive Summary...........................................................................................................13 Once up and running with some momentum, BOG will be steadily producing profits. It is projected that BOG will be making a profit by August.....................................................13 Environmental and Industry Analysis................................................................................14 Market Segmentation.....................................................................................................14 Target Market Segment Strategy...................................................................................14 Industry Analysis...........................................................................................................15 DESCRIPTION OF VENTURE.........................................................................16 Introduction (Description of Venture) ............................................................................................................................................17 The Company.................................................................................................................17 The Market.....................................................................................................................17 Financials ......................................................................................................................18 Mission...........................................................................................................................18 Objectives......................................................................................................................18 Company Ownership.....................................................................................................18 Why Basket of GoodieZ:...............................................................................................18 PRODUCTION PLAN .............................................................................19 Production Plan:.................................................................................................................20 Architecture:..................................................................................................................20 Internet Facilities:..........................................................................................................20 Money Transactions:......................................................................................................20 Setting Up a Website:....................................................................................................20 Develop a mailing list: ..................................................................................................22 MARKETING PLAN ................................................................23 Marketing Plan:..................................................................................................................24 Marketing Goals.............................................................................................................24 Marketing Objectives.....................................................................................................24 Size of Market................................................................................................................24 Product/Service..............................................................................................................25 Price...............................................................................................................................25 Promotion.......................................................................................................................26 Facilities Plan.................................................................................................................26 ..........................................................................................................27 ORGANIZATIONAL PLAN ..............................................................27 Organizational Plan:...........................................................................................................28 The Management Team.................................................................................................28 Organizational Structure ............................................................................................29 Assessment of Risk............................................................................................................30 The potential hazard to the company is the entry of a new competitor or the existing firms expand there business and enter in this field. ...................................................................30 FINANCIAL PLAN ................................................................................31 Financial Plan:...................................................................................................................32 Important Assumptions..................................................................................................33

Break-even Analysis......................................................................................................33 Projected Income Statement..........................................................................................34 Projected Cash Flow......................................................................................................34 Projected Balance Sheet.................................................................................................35 Business Ratios..............................................................................................................36

Acknowledgements
All the praise to Almighty Allah the most beneficent and merciful who gave us opportunity and strength to compile a Business Plan for a new venture (Basket of GoddieZ) launched as an entrepreneurial effort. I am thankful to our parents. My special thanks also go to our course instructor Mr. Arbab Naseebullah who provided assistance regarding this project whenever I inquired. Under his guidance I am able to prepare this project. This report is a combination of lot of sincere hard work and dedication my side, my valuable ideas and suggestions. My close friends were very co-operative and helpful throughout this report work. All my mates have contributed equally well with lot of care and authority.

Group Profile
I the student of Entrepreneurship presenting this business plan on, Basket of GoddieZ are student of 4th semester, currently doing Master in Business Administration (MBA) from BUITEMS. This report strengthens the concept of the subject and gives us a practical touch to what we have learned in our course through out the semester.

Syeda Dania Saeed Shah

Letter of Authorization
Dear Reader(s): As the student of the course of Entrepreneurship we have been authorized by Mr. Arbab Naseebullah for the preparation of this project on Basket of GoddieZ as a substantial part of MBA during Spring Semester 2011 at Balochistan university of information technology (BUITEMS). This report is mandatory for the course and is to be delivered on Dec 9th,2011

Sincerely, Syeda Dania Saeed Shah

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Letter of Transmittal
Mr. Arbab Naseebullah Course Instructor Faculty of Management Sciences BUITEMS. Date: Dec 9TH,2011 Respected Sir, I hereby present my final project on Basket of GoodieZ as assigned by you as a mandatory part of course. This project gives you complete highlights of a business plan how it is written what are the essential parts of a business plan gives you a brief overview of all aspects and tells you what exactly is my product and what is the target market for this product and how I am going to perform my business and what kind of sales am I expecting. This report also provides the practical implications of the topics and subject under consideration i-e Entrepreneurship. Hopefully, my report will fulfill its purpose and prove to be beneficial for the students of Entrepreneurship in its true essence. I also hope that the report will be up to your expectations. Any information or queries regarding this report will be highly appreciated by me. Sincerely, Syeda Dania Saeed Shah

11

Statement of Contribution
Syeda Dania Saeed Shah Prepare the Financial Plan & Presentation of it, Printing, Binding of report. Develop Venture Idea, Define venture, Documentation, Formatting of report, Prepare presentation of her part, Printing, Binding of report. Prepare Organizational Plan and presentation of it. Prepare Marketing Plan and presentation of it. Prepare the Production Plan and presentation of it.

12

Executive Summary

Basket of GoodieZ (BOG) is a premier gift basket retailer. BOG is concentrating on making gourmet gift baskets out of a wide range of high-quality ingredients. BOG will be selling to individuals as well as corporations. The primary gift baskets that will be offered are: smoked fish basket, fruit basket, pasta dinner basket, and picnic basket that have crackers, fruit, soft drinks and smoked fish etc. BOG also offers a custom basket which allows customers to pick items from a list and BOG will assemble the basket with its custom ingredients.

The purchasing of gift baskets is very "seasonal." Higher quality products and service will be provided at your door step.
Once up and running with some momentum, BOG will be steadily producing profits. It is projected that BOG will be making a profit by August.

13 xii

Environmental and Industry Analysis

BOG will be going after two distinct market segments, individuals and corporations. Both groups buy gift baskets as a goodwill gesture, typically for different reasons. Individuals typically buy the baskets as a present with over half of sales occur during holidays. Corporations buy the baskets as presents as well, but usually for events unrelated to the holidays. By going after both of these groups, sales will be less seasonal (relative to if only the individuals were targeted). There are many different "gift basket" in market. BOG will differentiate themselves through the use of premium ingredients in their baskets. The gourmet baskets, coupled with a custom option and reasonable prices (attributed to low overhead) will spell success for BOG. Market Segmentation BOG's has two distinct groups of customers, individuals and corporate customers:

1.

Individuals- The individuals are people who are looking to give a friend, relative,

colleague, etc., a gift basket as a gesture of goodwill. These customers typically do not have a specific type of gift basket in mind when they look at BOG's product offerings, they just want to give a gift.

2.

Corporate- The corporate customer is typically buying the basket for a colleague at

work, either as a sign of appreciation, for a special event, or as a thank you for a customer. The corporate market can be further broken down to banks, health care, employment gifts, real estate, apartments, special events/promotions, corporate headquarters, hotels/vacation resorts, and automobile dealerships. Target Market Segment Strategy BOG is focusing on individuals and corporate customers because they are the largest segments of purchasers for gift baskets. Individuals are the target purchaser of gift baskets. They purchase baskets typically as a thank you in response for something the recipient did or just to be nice. The gift basket is un-mistakenly a gift so upon receipt there is no ambiguity why it was sent or at least what it is trying to accomplish. Within the individual category, women are 69% more likely to be the purchaser of a gift basket compared to men. This is not to say that women more often purchase gifts, it just indicates women are more likely to buy gift baskets. BOG is focusing on the corporate customers as they currently represent approximately a third of the purchasers of gift baskets. The corporate customer could be buying the basket for someone

14

within their company, or they could be buying it for a customer, vendor, etc. The trend for the corporation to purchase gifts is not a new phenomenon and therefore would appear to be a solid market segment to pursue. Industry Analysis There are many different forms of competition in the gift basket business:

1.

Similar gift basket type retail stores: There are several of these stores located in

Karachi. These competitors offer a wide range of gift baskets, however none of them are concentrating on the higher end, gourmet product line. 2. Bath product gift basket companies: There is currently one gift basket company that concentrates on bath products. Bath products have a slightly smaller population of people who appreciate these products (as women predominately appreciate bath products more then men do). 3. Regional gift basket: There is one retailer that sells gift baskets composed of local products. These type of baskets tend to appeal to people that are buying gifts for people that are not from this area. 4. Candy gift baskets: There are several candy stores that offer, as one on their products, a candy gift basket. Similar to the bath products basket, candy typically appeals to women a bit more so then men. 5. Florists: Flowers are a similar product that competes with gift baskets. Once again flowers tend to appeal to women more so then men. The purchasing of gift baskets is very "seasonal." More than half of the gift basket purchasing occurs during a wide variety of holidays.

15

DESCRIPTION OF VENTURE

16

Introduction (Description of Venture)

Basket of GoodieZ (BOG) is a premier gift basket retailer. BOG is concentrating on making gourmet gift baskets out of a wide range of high-quality ingredients. In addition to having several flagship baskets, BOG will also offer the option of a custom basket allowing the customer to choose the ingredients themselves. BOG will be selling to individuals as well as corporations. Initially the bulk of BOG'z business will be generated by individuals from word-of-mouth referrals, but as time passes, corporations will become a growing percentage of sales. Once up and running with some momentum, BOG will be steadily producing profits. It is projected that BOG will be making a profit by December. By the end of year three, it is projected that BOG will be generating a net profit of approximately Rs. 100,000. The Company The Basket of GoodieZ' mission is to create the finest gift baskets available we will be hand assembling our products out of premier ingredients, local when possible. The business will be based at a group members place. Although this will be a home-based business, toward the end of year one, we will have an employee(s). The primary gift baskets that will be offered are: smoked fish basket, fruit basket, pasta dinner basket, and picnic basket that have crackers, fruit, soft drinks and smoked fish etc. BOG also offers a custom basket which allows customers to pick items from a list and BOG will assemble the basket with its custom ingredients. The Market The purchasing of gift baskets is very "seasonal." More than half of the gift basket purchasing occurs during a wide variety of holidays and occasions. BOG'z competitive advantage will be based on two factors, low overhead which allows reasonable prices, and an unrelenting desire for the highest quality product and service. 1. 2. Low overhead. Highest quality product and service.

17

BOG'z sales strategy will be targeted at obtaining both the individual and corporate clients through word-of-mouth referrals. Customers will be able to place an order at the office, over the phone or via the website. Financials BOG'z start-up costs will include all the equipment needed for the home-based office, legal fees, website creation, and start-up advertising. The home office equipment will be the largest chunk of the start-up expenses. This equipment includes a computer system, fax machine, office supplies, cellular phone etc. Additionally, there will be the installation of a broadband connection, and furniture for the home office. Total start-up expenses are expected to be Rs. 50,000(approx), all of which will be contributed by all members equally. Mission The Basket of GoodieZ' mission is to create the finest gift baskets available. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our products and services will exceed the expectations of our customers. Objectives The objectives for the first three years of operation include:

1. 2. 3.

To create a home-based company whose primary goal is to exceed customer's To increase the number of clients served by at least 20% per year through superior To develop a sustainable home business, surviving off its own cash flow

expectations performance and word-of-mouth referrals

Company Ownership The Basket of Goodiez will be a partnership, owned by all group members. Why Basket of GoodieZ:

1. 2.

This is a good opportunity because its first of its kind here in Pakistan. No one else is offering such a unique gift basket.

18

PRODUCTION PLAN

19

Production Plan:
As our business is service business, merchandise and management of inventories will not play a large role. We will be acting as commodities provider for product that is ordered by our clients. The home office equipment will be computer system, fax machine, office supplies, cellular phone, and pager. Architecture: The computer should have a 1 gigahertz Celeron/Pentium processor, 128 megabytes of RAM (preferably 512), 80 gigabyte hard drive, and a rewritable CD-ROM for backing up the system. Internet Facilities: There will be the expense installation of a broadband connection. While a broadband connection is necessary, it only costs between Rs. 800-900 per month for service and will make working on the Internet significantly faster and easier. Money Transactions: E-commerce often requires setting up a merchant account as well as establishing a payment gateway provider. A merchant account is a specialized bank account setup by a bank that allows you to accept credit cards. A payment gateway charges your customers' credit cards via the Internet and sends the funds to your merchant account. The payment gateway acts as the bridge between the merchant's Web site and the financial institutions that process transactions. Payment data is collected online from the shopper and submitted to the gateway for real-time authorization. Cash payments are less advanced but easier to set up. Funds are transferred from the buyer's bank account or credit card to the seller's account. This is similar to writing someone a check but much more secure and easier to track. Since no taxes or shipping costs are required, there is no need for shopping carts to manage the information. We will use the more popular and well-known forms of "cash payment" systems. Setting Up a Website: Registering Your Domain Name

20

Each Web site has its own unique name, such as Amazon.com or eBay.com. This is your "Domain Name." It is a unique name that identifies you to all of the other computers on the Internet. There are a number of companies known as "registrars" that will assist you in registering your Web site's name, including Dotster.com, GoDaddy.com and NetworkSolutions.com. Once you've registered and correctly set up your Domain Name Server, people who type www.BasketofGoodieZ.com into their browsers will be taken directly to out Web site. To completely secure a name we also buy .com extension for it. Once we have successfully registered our domain name, it will remain in our name and control for as long as we pay to keep it.

Our company name, trademarks, logos and artwork used on our site will require appropriate trademark and copyright protection under intellectual property laws. Our lawyer will be consulted on this issue in order to avoid unpleasant surprises (for example, the possibility of being advised that our company slogan belongs to someone else.
Hosting Website

Our online business will need a place to reside. We may choose to buy (by having our own network server) or lease (by having our site hosted by a Web-hosting service). We people find it much easier to lease hosting space. For example at My Own Business, we lease our hosting. For a monthly fee the Web host handles the technical details, and we are free to spend our time developing content for your Web site. Hosting services can also provide "user statistics," which track the number of visitors to our site.
Building Web site We have members in our group, who have required skills and experience so we will make our website by our group members because it will save our additional expense which we dont give in starting of our business. Make our site easy to use: While it might be tempting to have a cutting-edge Web site we wont forget the basics. We will fail if a visitor can't navigate successfully through our site. Provide clear, easy-to-understand

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navigational tools on each page of our site. Make it easy for a visitor to find our contact information on every page. In our website we will be providing exact and complete specification of our product so our customer find it easier and useful for their transaction. Develop a mailing list: A far more appealing strategy is to develop a mailing list. Invite our customers to "opt in" to receive a newsletter or notices of specials running at our business. Make this information relevant and useful for our customer. Consider providing a "coupon" that will give them a discount on their next purchase. And, always give the recipient an easy means to "opt out" of receiving future e-mails.

22

MARKETING PLAN

23

Marketing Plan:
The marketing strategy was designed on the basis of personal interviews conducted with individuals from different areas of KARACHI city. These interviews indicated the likeness of BOG concept, thus providing us a large target market. Basket of GoodieZ (BOG) is a premier gift basket retailer. BOG is concentrating on making gourmet gift baskets out of a wide range of high-quality ingredients. BOG will be selling to individuals as well as corporations. Initially the bulk of BoGz business will be generated by individuals (mostly upper class) from word-of-mouth referrals, but as time passes, corporations and middle class will become a growing percentage of sales. Our office is located at defense area which itself lends convenience services that we can provide for our primary target market. Marketing Goals To meet the growing needs of a target market defined on the basis of geography, demographics, and lifestyle and buyer intentions. BoGz competitive advantage will be based on two factors, low overhead which allows reasonable prices, and an unrelenting desire for the highest quality product and service. To establish an effective and profitable marketing mix of service, place, price and promotion. Marketing Objectives The objectives for the first three years of operation include: 1. To generate RS.100000 in profit by the end of third year. 2. To increase the number of clients served by at least 20% per year. 3. To develop a sustainable home business, surviving off its own cash flow 4. To expand to at least two new locations by the end of the first three year. Size of Market According to our research, there are about (approximate), 8000 people who pass our office every day and according to our survey 85% of these individuals match our primary target market. This would consist of individuals of any age, male/female and children as well, with high disposable income, mostly from high and upper middle class.

24

There is also the potential to reach an additional customer, who may not directly pass by our office on a regular basis. This secondary market may be penetrated through advertising literature. On the basis of the above information, it is estimated that the potential market is between 12000 and 16000 people. Our objective is to reach 15% of the primary market and 5% of secondary market. Thus in our first year the market would consist of about 1200 customers. Product/Service The Basket of GoodieZ' mission is to create the finest gift baskets available we will be hand assembling our products out of premier ingredients, local when possible. The primary gift baskets that will be offered are: smoked fish basket, fruit basket, pasta dinner basket, and picnic basket that have crackers, fruit, soft drinks and smoked fish etc. BOG also offers a custom basket which allows customers to pick items from a list and BOG will assemble the basket with its custom ingredients. The customer can place their order at the office, over the phone or via the website. Price The purchasing of gift baskets is very "seasonal." More than half of the gift basket purchasing occurs during a wide variety of holidays and occasions. BoGz pricing strategy is based on the type and number of items, basket containing. The lowest price of 1basket would be RS.1000. Price also depends on the distance between our office and ordered place. Prices of few items are indicated below. Name of Basket Fruits Basket Smoked Fish Basket Pasta Dinner Basket Picnic Basket Price RS.399/RS.599/RS.899/RS.1199/-

25

Custom Basket Promotion

Depends on quantity and type of items

BOG will rely extensively on word-of-mouth advertising. However, it will be important to create an awareness of our services to the target market. To attract attention and to create awareness, signs will display our name and describe our services to the many individuals, who actually pass by the office. Pamphlets will also be distributed to office buildings in the target market and later on advertising will be used to promote our business. Facilities Plan

The business will be based at a group members place. So no rent applies. BoGz start-up costs will include all the equipment needed for the home-based office, legal fees, website creation, start-up advertising, storage for hot and cold foods, storage for garments will be used in making baskets, and groceries. The home office equipment will be the largest chunk of the start-up expenses. This equipment includes a computer system, fax machine, office supplies, cellular phone etc. Additionally, there will be the installation of a broadband connection, and furniture for the home office. Along with that counters will be set up in a small area at the front of office for conducting business with clients. Total start-up expenses are expected to be Rs. 50,000(approx.).

26

ORGANIZATIONAL PLAN

27

Organizational Plan:
Form of Ownership: Partnership Liability of Owners: Partners are liable for business liabilities Continuity of Business: After death of any partner, the ownership is transferred to his/her legal heirs. Transfer of Interests: Partner can transfer interest only after the consent of other partners Management Control: All Partners have equal management control as each of them is a head of a function of the organization.

Distribution of Profits: All profits are distributed equally as all partners invest equally in the venture The Management Team The management team consists of the following individuals: Syeda Dania Shah, Head of Administration Haseeb Hayat, Head of Research & Development Sajida Younus, Head of Financial Department Gulbano, Head of Marketing & PR Fahad , Head of HR Department

28

Organizational Structure

Head of Administration He/She is responsible for policy making and taking care of the legal, financial, HR and administrative issues of the business. He will deal with the external environment. He/She is also responsible for making or implementing major decisions and organizing people and resources efficiently to achieve common goals and objectives. Legal Consultant A legal consultant is employed to look after the legal affairs of the organization, taxation issues, preparing contracts and verifying legality of documents. He/She will report to the Head of Administration.

29

HR Manager He/She will report to the Head of Administration. The responsibilities are to deal with the HR issues both internal (i.e., of our organization) and external. He/She is responsible for the recruitment of the workers and maintains all records of employees to give those rewards and compensation. Head of Finance Department He/She responsible for track sales, issue reports on sales, production costs, control capital for expansion. He/She will report to the head of Administration Department. Accounts Manager He/She is placed at the Head Office and is responsible for maintaining proper book of accounts; prepare salary invoices, yearly audit and financial allocations. He/She will report to the Head of Finance department. Head of Research & Development He/She is responsible for the Research and development program and brings new ideas and fresh food related research that consumers satisfy more by giving them more freshly and appetite food. Head of Marketing & PR He/She is responsible for making policies in areas of marketing and PR. He/ She work on advertising, coupons, increase food services, promotion, and how we can increase our sales. Security Guard A security guard is responsible to make sure to check all entrants with a metal detector. Peon A peon is responsible for all the office chores, dusting and cleaning.

Assessment of Risk
The potential hazard to the company is the entry of a new competitor or the existing firms expand there business and enter in this field.

30

FINANCIAL PLAN

31

Financial Plan:
Basically, the Basket of GoodieZ (BOG) financial plan consists of three financial statements, the income statement, the cash flow projection and the balance sheet and a brief explanation/analysis of these three statements. Basket of GoodieZ (BOG) business expenses as broken into two categories; your start up expenses and your operating expenses. All the costs of getting your business up and running go into the start up expenses category. These expenses may include:

Business registration fees Business licensing and permits Starting inventory Rent deposits Down payments on property Down payments on equipment Utility set up fees

This is just a sampling of start up expenses; your own list will probably expand as soon as you start writing them down. Operating expenses are the costs of keeping your business running. Think of these as the things you're going to have to pay each month. Your list of operating expenses may include:

Salaries (yours and staff salaries) Rent or mortgage payments Telecommunications Utilities Raw materials Storage Distribution Promotion Loan payments

32

Office supplies Maintenance

Once again, this is just a partial list to get you going. Once you have your operating expenses list complete, the total will show you what it will cost you to keep your business running each year. Multiply this number by 3, and you have a 3 years estimate of your operating expenses. Then add this to the total of your start up expenses list, and you'll have a ballpark figure for your complete start up costs. Now let's look at putting some financial statements for your business plan together, starting with the Income Statement. Important Assumptions The following table details important financial assumptions for BOG.
General Assumptions Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other 2011 1 10.00% 10.00% 25.42% 0 2012 2 10.00% 10.00% 25.00% 0 2013 3 10.00% 10.00% 25.42% 0

Break-even Analysis

The Break-even Analysis indicates BOG will need to sell approximately Rs.4,900 in baskets per month to break even.
Break-even Analysis Monthly Revenue Breakeven Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost Rs.4,915

34% Rs.3,223

33

Projected Income Statement

The following table will indicate projected profit and loss.

Pro Forma Profit and Loss Sales Direct Cost of Sales Other Total Cost of Sales Gross Margin Gross Margin % 2011 Rs.43,545 Rs.14,989 Rs.0 Rs.14,989 Rs.28,556 65.58% 2012 Rs.93,319 Rs.26,328 Rs.0 Rs.26,328 Rs.66,991 71.79% 2013 Rs.109,910 Rs.34,022 Rs.0 Rs.34,022 Rs.75,888 69.05%

Expenses Payroll Sales and Marketing and Other Expenses Depreciation Leased Equipment Utilities Insurance Rent Payroll Taxes Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales

Rs.31,500 Rs.1,200 Rs.655 Rs.0 Rs.0 Rs.600 Rs.0 Rs.4,725 Rs.0 Rs.38,680 (Rs.10,124) (Rs.9,469) Rs.0 Rs.0 (Rs.10,124) -23.25%

Rs.39,000 Rs.1,200 Rs.672 Rs.0 Rs.0 Rs.600 Rs.0 Rs.5,850 Rs.0 Rs.47,322 Rs.19,669 Rs.20,341 Rs.0 Rs.4,917 Rs.14,752 15.81%

Rs.39,000 Rs.1,200 Rs.672 Rs.0 Rs.0 Rs.600 Rs.0 Rs.5,850 Rs.0 Rs.47,322 Rs.28,566 Rs.29,238 Rs.0 Rs.7,261 Rs.21,305 19.38%

Projected Cash Flow

The following chart and table will indicate projected cash flow.
Pro Forma Cash Flow 2011 Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities 2012 2013

Rs.43,545 Rs.43,545

Rs.93,319 Rs.93,319

Rs.109,910 Rs.109,910

Rs.0 Rs.0 Rs.0 Rs.0

Rs.0 Rs.0 Rs.0 Rs.0

Rs.0 Rs.0 Rs.0 Rs.0

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Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations

Rs.0 Rs.0 Rs.0 Rs.43,545 2001

Rs.0 Rs.0 Rs.0 Rs.93,319 2002

Rs.0 Rs.0 Rs.0 Rs.109,910 2003

Rs.31,500 Rs.18,916 Rs.50,416

Rs.39,000 Rs.44,238 Rs.83,238

Rs.39,000 Rs.49,978 Rs.88,978

Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Rs.0 Principal Repayment of Current Rs.0 Borrowing Other Liabilities Principal Repayment Rs.0 Long-term Liabilities Principal Rs.0 Repayment Purchase Other Current Assets Rs.0 Purchase Long-term Assets Rs.0 Dividends Rs.0 Subtotal Cash Spent Rs.50,416 Net Cash Flow Cash Balance (Rs.6,871) Rs.15,779

Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.83,238 Rs.10,081 Rs.25,860

Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.88,978 Rs.20,932 Rs.46,792

Projected Balance Sheet

The following table will indicate the projected balance sheet.

Pro Forma Balance Sheet 2011 Assets Current Assets Cash Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities 2012 2013

Rs.15,779 Rs.3,507 Rs.0 Rs.19,286

Rs.25,860 Rs.6,160 Rs.0 Rs.32,020

Rs.46,792 Rs.7,960 Rs.0 Rs.54,752

Rs.2,000 Rs.655 Rs.1,345 Rs.20,631 2011

Rs.2,000 Rs.1,327 Rs.673 Rs.32,693 2012

Rs.2,000 Rs.1,999 Rs.1 Rs.54,753 2013

Rs.6,105 Rs.0 Rs.0 Rs.6,105

Rs.3,415 Rs.0 Rs.0 Rs.3,415

Rs.4,170 Rs.0 Rs.0 Rs.4,170

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Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth

Rs.0 Rs.6,105 Rs.28,000 (Rs.3,350) (Rs.10,124) Rs.14,526 Rs.20,631 Rs.14,526

Rs.0 Rs.3,415 Rs.28,000 (Rs.13,474) Rs.14,752 Rs.29,278 Rs.32,693 Rs.29,278

Rs.0 Rs.4,170 Rs.28,000 Rs.1,278 Rs.21,305 Rs.50,584 Rs.54,753 Rs.50,584

Business Ratios

The ratios table compares BOG's estimated growth, balance and profit ratios to the industry standard for miscellaneous personal services.
Ratio Analysis Sales Growth Percent of Total Assets Inventory Other Current Assets Total Current Assets Long-term Assets Total Assets Current Liabilities Long-term Liabilities Total Liabilities Net Worth Percent of Sales Sales Gross Margin Selling, General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios Net Profit Margin Return on Equity Activity Ratios Inventory Turnover Accounts Payable Turnover 2011 0.00% 2012 114.30% 2013 17.78% Industry Profile 17.90%

17.00% 0.00% 93.48% 6.52% 100.00% 29.59% 0.00% 29.59% 70.41%

18.84% 0.00% 97.94% 2.06% 100.00% 10.45% 0.00% 10.45% 89.55%

14.54% 0.00% 100.00% 0.00% 100.00% 7.62% 0.00% 7.62% 92.38%

4.60% 37.10% 52.80% 47.20% 100.00% 33.90% 28.00% 61.90% 38.10%

100.00% 65.58% 88.87% 0.00% -23.25%

100.00% 71.79% 55.98% 0.00% 21.08%

100.00% 69.05% 49.55% 0.00% 25.99%

100.00% 0.00% 72.70% 2.20% 4.00%

3.16 2.58 29.59% -69.69% -49.07% 2011 -23.25% -69.69%

9.38 7.57 10.45% 67.18% 60.16% 2012 15.81% 50.38%

13.13 11.22 7.62% 56.47% 52.17% 2013 19.38% 42.12%

1.81 1.33 61.90% 6.30% 16.60%

n.a n.a

10.80 4.10

5.45 12.17

4.82 12.17

n.a n.a

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Payment Days Total Asset Turnover Debt Ratios Debt to Net Worth Current Liab. to Liab. Liquidity Ratios Net Working Capital Interest Coverage Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout

27 2.11

42 2.85

27 2.01

n.a n.a

0.42 1.00

0.12 1.00

0.08 1.00

n.a n.a

Rs.13,181 0.00

Rs.28,605 0.00

Rs.50,582 0.00

n.a n.a

0.47 30% 2.58 3.00 0.00

0.35 10% 7.57 3.19 0.00

0.50 8% 11.22 2.17 0.00

n.a n.a n.a n.a n.a

37

APPENDIX

38