BUSINESS PLAN eye shades stickers

BUSINESS PLAN

Presented By: Muhammad Adnan

e-mail address: izadnan@hotmail.com

NATURE OF COMPANYINTRODUCTION:

“self adhesive label, Eye Shadows stickers”

›Company Name

EYESHE

›Industry

Cosmetic industry

›Product

Eye Shadow Sticker

Continue…….

Nature of Company

LEGAL STRUCTURE:› Partnership (5 partners) 

Continue……….

Facilities

›Location

Maymar industrial area, near super high way (200 Sq yards)›Machinery:

Flexographic machine: Flexographic printing machine, also called aniline press which uses photosensitive resin plate as the printing plate of printing machine. It adopts environmental ink and has advantage of low edition-producing cost, this is an ideal machine for mass lots, large variety production manufacturer It is also suitable for printing HDPE, LDPE, PP, cellophane paper, rolling paper etc

Machine Specification:

Printing speed 60m/minPrinting color 10colorMax web width 330mmMax printing width 320mmMax unwind diameter 700mmMax rewind diameter 700mmTotal power 10.5kwPrinting girth 175-355mmOverprint precision ±0.1mmDimensions(L*W*H) 3730*1150*2550MM

Universal High Speed FlexoPrinting Machine (RY_320_10_label_flexo_printing_press)

Operating plans

WORKING DAYS AND TIMINGS OF MACHINE

4 hours a day 5 days a week 80 hours a month

PURCHASING:

We make sure that all of our material is best in quality.

This involves purchasing of: Paper Roll Water Fluid ink

SUPPLIERSFor Machinery:

Ruian City, Henyue Printing Machinery Co., Ltd.

URL: http://henyue.en.alibaba.comRaw Material information: ROHS Paper: Restriction of Hazardous Substances:($180)

http://www.alibaba.com/productgs/510972076/ISO9001_2000_Rohs_CE_Ceramic_Fiber.html

http://suindustry.en.alibaba.com/

Water Fluid Ink ($15 per liter) http://www.alibaba.com/productgs/6990

56579/sticker_printer_solvent_ink.html http://fyprinter.en.alibaba.com

PAYMENT:

Payment is made through Banks in US $(DOLLAR)

MANAGEMENT TEAM & RESPONSIBILITIES:

› Salary StructureOut of the total net income a certain portion

will be general partner remuneration which will be divided equally divided among the partners. The remaining will be held as Reserves.

Names Experience Skills Functional Responsibility

Muhammad Adnan Fresh Graduate Communication Skills, Networking. Good at numbers

Finance Manager

Zaid Wajid Fresh Graduate Analyzing and development skills

Business Analyst, Marketing Manager

Imran afsar Fresh Graduate Communication and Problem solving Skills

Hr Manager

Muhammad Shoaib

Anwer

Fresh Graduate Market Researcher R&D Manager

IHSAN Fresh Graduate Communication, Problem Solving skills

Operation Manger

Potential Risks

Political and economical instability  Resist in buying new product & brand: Price Sensitivity: Problems with suppliers: A potential strike or labor stoppage:

MARKETING OBJECTIVES:Qualitative Objectives: To create awareness of our product: through using mass media, print

ads & billboards. To make customer-oriented company: by delivering maximum quality

and new design & also educate customers regarding changing trend in cosmetic and the fashion industry

Quantitative Objectives: To achieve the desired level of sales: for this we have made

allies with the retailers giving them high commission to sell our product & also informing the customers about the benefits of our product.

Sales growth: To achieve 10% increase in market share annually  Product line extension: We plan to increase our product line by

introducing a wide variety of new flavors and variation. Growth in market share: After acceptance of our product in

Karachi, we will launch our product to other cities of Pakistan.

Marketing Plans:

USP

Easy to use Have a longer life of 24 hours Easy to erase Skin friendly (Water fluid ink) less viscosity (that enable it to dry

quickly)

TARGET MARKET:

•Female of Karachi• age above 14•Professional women•School going girls •Teachers, lawyer, doctors, And SO ON…

Competition:

Direct competition: We will not be facing any direct competition with the cosmetic

industry in Pakistan International cosmetic companies include S.nail, H.S, Avon eye

shadow stickers

Indirect competition: Medora Etude Revlon

4P’S OF MARKETINGPRODUCT:“self adhesive label, Eye Shadows stickersPRICE:75 AveragePROMOTION: through newspapers and promotional activities.PLACE: Karachi, Pakistan

FINANCIAL

PROJECT Implementation Period

Purchase of land

Building construction

0 4 5321 6

Machinery order

Hiring of technical

Machinery

deliver

Trial run

6 months

SOURCE OF FINANCING EQUITY :

20% contributed by each of the 5 partners. Its mean each partner will contribute Rs.1,389,800

DEBT:

Is Use for the financing of Machinery and Initial Working Capital.

Machinery & Equipment* ($10000*96.5) Rs.1,447,500

Installation (7% of cost of machine) Rs.101,325

Initial Working Capital Rs. 13,045,369

Capital Structure:

Equity 32%

Debt 68%

Debt Rs.14,594,194 Equity Rs. 6,949,000

Total Project Cost RS 21,543,194

Capital Structure, Total Project Cost:

SOURCES OF DEBT FINANCING

PICIC :For the financing of machinery @12%

*Kibor 9.5%+2.5%=12%

Mudarba Bank (KASB Bank)for the financing of working capital @14%

*Kibor 9.5%+4.5%=14%

loan repayment schedule (for the fixed asset)

year Begning balance interest 12% payment total remaining balance

- 1,548,825

-

-

-

1,548,825

1 1,548,825

185,859

309,765

495,624

1,239,060

2 1,239,060

148,687

309,765

458,452

929,295

3 929,295

111,515

309,765

421,280

619,530

4 619,530

74,344

309,765

384,109

309,765

PICIC 2,098,825Total Loan Amount Required 309,765Interest Rate 12.0%Constant Payment 309,765

 Loan repayment schedule (for working capital)

year Begning balance interest 12% payment total remaining balance

- 13,045,369

-

-

-

13,045,369

1 13,045,369

1,826,352

13,045,369

14,871,720

-

Cost Elements No of Employees

Per month salary

Security guards 2 8000 96000

Peon 2 6000 72000

Legal advisor fee 1 20000 120000

Company formation fee

N/A - 50000

Advertising & Marketing Exp

N/A - 300000

TOTAL   - - 638000

Implementation period

6 month

Preliminary Expenses Break Up

Explanation: how did we establish this capacity?

We have calculate the capacity by keeping the following assumption in mind, these are

Daily hours the machinery operate 4 Per week the machinery operate hours 20.00 Per month the machinery operate in hours 80.00 1 paper roll can be printed by 10 liter of water fluid ink Waste of 40% exist  

Establishing capacity

Machine can print 60metar/minute 1 paper roll length is equal to 600 meter and the width is equal to .7 mmThe Area of one Paper Roll = 672000 Sq inches*

Calculation*:one meter =39.37 inches =40 inches

Covert the date into inches 600meter=40inch *600 = 24,000 inch

.7 millimeter =40*.7 = 28 inch

The Total Area of the Roller = 672,000 Sq inchContinue…….

Calculation of the Total Number of Stickers by the one Paper roller:

Calculation of the total number of stickers by the one roller is to set the standard of the eye shades stickers

That the sticker is 1 inch in height and 1.5 inch In length

Now, the total sticker we can print is equal to 448,000

Waste of 40 % is equal to 179,200 Now the total sticker left after the waste

deduction is equal to 268,800 Now covert it to pairs 268,800/2 which is

equal to 134,400 pairs of stickers which can be produce by the one paper roll

Hence the capacity means, the total number of sticker in pairs made each month is equal to 134400*80 which is equal to 10,752,000

PAPE

R R

OLL

ER

Length of the roller 600

meter =24000 inch

Height of the roller is .7mm =28 inches

Continue………

Capacity

The capacity of the project if operate at the full capacity (100%) is equal to 10,752,000 Pair of stickers each month.

During trial run period (2 month) the capacity of the project is 5% which is equal to 537,600 pair of eye shadow stickers.

Capacity of the Project during trial run period per month

=actual output/actual capacity

Capacity = 537,600 / 10,752,000Capacity=5%

Project Cost break up:

land (200 sq yards) 2,500,000

Building 1,800,000

vehicles 400,000

Interiors 700,000

Machinery & Equipment* (15000*96.5) 1,447,500

Installation (7% of cost of machine) 101,325

Generator (45 Kva / 37 kva ISUZU) 550,000

Contingencies 200,000

Office Equipment 161,000

Preliminary Expenses 638,000

Initial Working Capital 13,045,369

Total Project Cost 21,543,194

PRODUCT RANGE:

product range 2 20% 20% 20% 20% 20%

trial run Period YR 1 YR 2 YR 3 YR 4 YR 5

Product Range # of eye shades

bridal eye shades

322,560

2,322,432

2,786,918 3,344,302 4,013,162 4,815,795

casual eye shades

322,560

2,322,432

2,786,918 3,344,302 4,013,162 4,815,795

party Eye shades

430,080

3,096,576

3,715,891 4,459,069 5,350,883 6,421,060

Total Designs 1,075,200

7,741,440

9,289,728

11,147,674 13,377,208 16,052,650

DM COST OF INK PER PAIR 0.91

DM COST OF PAPER PER PAIR 1.09

DIRECT MATERIAL COSTING:

DM COSTING

DM cost pair

water fluid ink 0.91

976,077

2,108,326

2,529,991 3,035,989 3,643,187 4,371,824

ROHS Paper 1.09

1,171,292

2,529,991

3,035,989 3,643,187 4,371,824 5,246,189

Total DM Cost 2,147,369

4,638,316

5,565,980 6,679,176 8,015,011 9,618,013

DIRECT LABOUR COST:

DL COSTING

Months 2

trial run Period YR 1 YR 2 YR 3 YR 4 YR 5

Workers (technicians)

2

2

2

3 3 4

Workers 10,000

40,000

240,000

240,000

360,000 360,000 480,000

Total DL Cost 40,000

240,000

240,000

360,000 360,000 480,000

DL COST PER PAIR

0.0039156721

FOH COSTING

Trial Run Period YR 1 YR 2 YR 3 YR 4 YR 5

Monthly Cost

Transportation 10,000

20,000

120,000

120,000

120,000 120,000 120,000

Maintenance cost per year N/A

144,750

144,750

144,750 144,750 144,750

Utilities

Electricity 25,000

50,000

315,000

360,000

360,000 360,000 360,000

Telphone/ Internet

4,000

8,000

48,000

48,000

48,000 48,000 48,000

Depreciation:

Interiors & Equipment

214,750

214,750

214,750 214,750 214,750

machinery

289,500

289,500

289,500 289,500 289,500

Generator & Office Equipment

142,200

142,200

142,200 142,200 142,200

Other Expenses:

packaging (outsource)

10,752,000

64,512,000

64,512,000

64,512,000 64,512,000 64,512,000

Security Guards 8,000

16,000

96,000

96,000

96,000 96,000 96,000

Peon 6,000

12,000

72,000

72,000

72,000 72,000 72,000

Total FOH 10,858,000

65,954,200

65,999,200

65,999,200 65,999,200 65,999,200

FOH per piece 2.13

30.67067

30.69159

30.69159 30.69159 30.69159

Cost of eye shadow stickers:

COST OF EYE SHADOW STICKERS

Trial Run Period YR 1 YR 2 YR 3 YR 4 YR 5

Total DM Cost

2,147,369

4,638,316

5,565,980

6,679,176 8,015,011 9,618,013

Total DL Cost

40,000

240,000

240,000

360,000 360,000 480,000

Total FOH

10,858,000

65,954,200

65,999,200

65,999,200 65,999,200 65,999,200

TOTAL COST

13,045,369

70,832,516

71,805,180

73,038,376 74,374,211 76,097,213

Price Based on market researsh:

Product type s Prices

Bridle eye shades 80

casual eye shades 70

party Eye shades 70

Summary of Profit and Loss Account INCOME STATEMENT

Trial run period YR 1 YR 2 YR 3 YR 4 YR 5

sales Revenue 78,489,600

565,125,120

678,150,144 813,780,173

976,536,207 1,171,843,449

COGS 13,045,369 70,832,516 71,805,180 73,038,376 74,374,211 76,097,213

Gross Profit 65,444,231

494,292,604

606,344,964 740,741,797

902,161,997 1,095,746,236

LESS: Depreciation

plant, machinery - 289,500 289,500 289,500 289,500 289,500

interior - 214,750 214,750 214,750 214,750 214,750

office equipment - 142,200 142,200 142,200 142,200 142,200

EBIT 65,444,231

494,225,154

605,698,514 740,095,347

901,515,547 1,095,099,786

Interest (working capital

- 1,826,352 - - - -

Interest (Machinery)

- 185,859 148,687 111,515 74,344 37,172

EBT 65,444,231

492,212,943

605,549,827 739,983,832

901,441,203 1,095,062,614

Taxes 26,177,693

196,885,177

242,219,931 295,993,533

360,576,481 438,025,046

Net Income 39,266,539

295,327,766

363,329,896 443,990,299

540,864,722 657,037,568

REVENUE SCHEDULE:

REVENUE SCHEDULE

Revenue Increase 20% 20% 20% 20%

Trial Run Period YR 1 YR 2 YR 3 YR 4

# OF CUSTOMERS

Bridle eye shades

322,560 2,322,432 2,786,918 3,344,302 4,013,162

casual eye shades

322,560 2,322,432 2,786,918 3,344,302 4,013,162

party Eye shades

430,080 3,096,576 3,715,891 4,459,069 5,350,883

Total buyers 1,075,200 7,741,440 9,289,728 11,147,674 13,377,208

price per piece

Bridle eye shades

80

25,804,800 185,794,560 222,953,472 267,544,166 321,053,000

casual eye shades

70

22,579,200 162,570,240 195,084,288 234,101,146 280,921,375

party Eye shades

70

30,105,600 216,760,320 260,112,384 312,134,861 374,561,833

Total Revenue (Rs) 78,489,600 565,125,120 678,150,144 813,780,173 976,536,207

SWOT ANALYSIS:

STRENGTHS

First to market in Karachi. A practical, efficient way to

have a Makeover, minimizing costs.

Easy to use, can use by large population

WEAKNESSES:

The company lacks visibility, because of large number of competitor.

The whole industry is so cutting edge it lacks consumer awareness.

less awareness.

Continue…….

THREATS

Conservatism and Traditionalism.

Competition may arise soon.

OPPORTUNITIES

Similar companies in other countries have seen explosive growth.

Rationality (reasonableness).

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THANK YOU…..

ANY QUESTION….

?