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YAWEH CONSTRUCTION AND SURVEY COMPANY (U) LTD.

P.O Box 21812, Kampala

Fjpyawehco yahoo.com

CO-OWNERS

Name Telephone Number

Filly John Paul 0700632191

Singh Patel 0770023547

SSekijjoba Daniels 0755278659

Nabaterega Safina 0700023546

Description of the Business

Yaweh constructional and surveying company (YCSC) is a start up company in theBugolobi area. It is the mission of the YCSC (U) Ltd to provide real estate services in thenewly established Golden Valley Retirement Community, located in Bugolobi. YCSC(U) Ltd is a full real estate, mortgage and title company.

Financing

YCSC (U) Ltd expects to raise $390,000 as its own capital and to borrow $4.2 millionguaranteed by the Cairo bank as a ten year loan. This provides the bulk of the currentfinancing requirements for company growth.

A statement of confidentiality.

This report is confidential and a property of the owners listed above. It is intended onlyfor use by the persons to whom it is transmitted and any reproduction of its contentswithout their permission is prohibited. And the loan acquired will be paid off with in tenyears of the companys operation without fail.

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TABLE OF CONTENTS

CHAPTER ONE..................................................................................................................11.0 EXECUTIVE SUMMARY.....................................................................................1

1.1 management Capabilities...........................................................................................11.2 Finances.....................................................................................................................1

1.3 Target market.............................................................................................................11.4 Products and Services................................................................................................21.5 keys to success...........................................................................................................21.6 Vision and mission statement....................................................................................2

CHAPTER TWO.................................................................................................................32.0 INDUSTRY ANALYSIS..........................................................................................32.1 Competitors................................................................................................................32.2 strength and weaknesses of the competitor................................................................42.3 customer profile.........................................................................................................4

CHAPTER THREE............................................................................................................43.0 COMPANY OVERVIEW.........................................................................................5

3.1Business Location.......................................................................................................53.2 Company Objectives..................................................................................................53.3 Company ownership..................................................................................................63.4 Company Background...............................................................................................63.5 Management Experience............................................................................................63.6 venture prospects.......................................................................................................73.7 legal status..................................................................................................................7

CHAPTER FOUR................................................................................................................74.0 PRODUCTION / SERVICE PLAN..........................................................................84.1 Products / services......................................................................................................84.2 Uniqueness of services...............................................................................................8

4.3 Development of services / products...........................................................................84.4 Draw backs.................................................................................................................84.5 competitive comparisons...........................................................................................94.6 future expansions.......................................................................................................9

CHAPTER FIVE.................................................................................................................95.0 MARKETING PLAN................................................................................................95.1 Market Analysis Summary........................................................................................95.2 Market Segmentation ..............................................................................................105.3 Target Market Segment Strategy.............................................................................115.5 Competition and Competitive Edge.........................................................................125.6 Strategy and implementation summary...................................................................14

5.7 Sales strategy...........................................................................................................145.8 Ongoing market evaluation......................................................................................15

CHAPTER SIX..................................................................................................................156.0 MANAGEMENT PLAN.........................................................................................156.1 Organizational structure...........................................................................................166.2 Board of Directors ..............................................................................166.3 Management Team...................................................................................................176.4 Labor Management Techniques...............................................................................19

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6.6 Management compensation.....................................................................................206.7 Other investors.........................................................................................................216.8 Critical risks, problems and assumptions.................................................................21

CHAPTER SEVEN...........................................................................................................227.0 OPERATING PLAN...............................................................................................23

7.1 Operating Cycle.......................................................................................................237.2 Geographical Location.............................................................................................237.3 Facilities and Improvements....................................................................................237.4 Strategy and plans ...................................................................................................237.5 Quality assurance.....................................................................................................247.6 Regulatory and legal issues......................................................................................24

CHAPTER EIGHT............................................................................................................258.0 FINANCIAL PLAN.................................................................................................258.1 Investments and financing.......................................................................................258.2 Break-even Analysis................................................................................................258.3 Sales forecast for three years...................................................................................25

8.4 YCSCS PROFORMA BALANCE SHEET FOR THREE YEARS......................268.4 PROJECTED PROFIT AND LOSS........................................................................278.6 YCSC (U) LTD PROFORMA CASH FLOW FOR THREE YEARS....................288.7 BUSINESS RATIOS...............................................................................................29

APPENDIX 1.....................................................................................................................31APPENDIX 3.....................................................................................................................34

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CHAPTER ONE

1.0 EXECUTIVE SUMMARY.

Yaweh constructional and surveying company ltd is a medium sized commercial

construction company with offices in bugoloobi. YCSC (U) Ltd has been fortunate to be

awarded some initial sizable contracts for several projects among its four locations.

1.1 management Capabilities

The management of Yaweh constructional and surveying company (U) Ltd is to be of

vast professional experience dedicated towards the satisfaction of the customers who are

the major reasons for the companys existence. The management capabilities are actually

a booster to our objectives as evidenced by the academic qualifications possessed.

1.2 Finances

The total amount required for the company is $4,590,000. This will include the amount

for the insurance, purchase of non current assets, office set up, acquiring legal documents

and others. The stated co-owners will contribute $390,000 as capital and the $4.2 million

will be obtained as a loan from the bank. This will be used to purchase the non current

assets, office set up and cash requirements. The loan acquired will be paid within ten

years of the companys operation.

1.3 Target market

The company will mainly focus on two market sub- segments of commercial

construction industry that is, the urban project segments and the local government

contracts.

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1.4 Products and Services

The company will provide the following types of constructions and surveys; schools,

apartments, arcades, parking lots, roads and services like installation of building lights,

Data information system.

The main focus of the company shall be on how to out compete our competitors and fully

exploit the Ugandan markets due to the invasion and innovation of new ideas to correct

deviations incase of any.

1.5 keys to success.

YCSC (U) Ltd keys to success will be comprised of the following factors;

a) Promoting trust worthy among other commercial real estates in the community.

b) Retaining high quality on site management

c) Completion of work within the given time as stated in the contract.

d) Track the progress of each construction project,

e) Taking accurate estimates on the prices of the materials

1.6 Vision and mission statement

Vision statement

To provide high quality craftsmanship in the commercial construction industry at a

competitive cost.

Mission statement

To achieve a greater reputation for quality and on time delivery than the current

competitors in the central region. We further intend to deliver on time competition and

maintaining high integrity on all promised timelines and quality assurances.

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CHAPTER TWO

2.0 INDUSTRY ANALYSIS

With the extensive contracts of the Yaweh Constructional and Surveying Company (U)

Ltd has in the commercial real estate business, it is estimated that the company will have

a significant number of contacts within the first three days.

There are very few construction companies that provide the products and services given

by the YCSC (U) Ltd.

The company has come up with new developments in the installation of all business

operation systems like data information system and wreaking services as part of building

re-construction project.

2.1 Competitors

Some of the companys competitors include; HOSSANA REAL ESTATES, JOMAYI,

SEMA PROPERTIES and others.

As regards to the competitive environment. YCSC (U) Ltd aims at customer or client

satisfaction as they are the major reasons for existence. This is done by providing quality

assurances and ensuring on time deliveries and fulfilling the general welfare of the

public.

Through research will be conducted to avail the management team with the necessary

information about the products and services that the company provides to the public. In

case of a decline in demand, new techniques will be adopted to meet the needs of thecustomers thus creating operational efficiency.

According to the recent study carried out, research shows that the sales of JOMAYI are

declining with decreasing demand for their products and services, while the sales of

HOSSANA are growing at a steady pace.

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2.2 strength and weaknesses of the competitor

The following are the strength and the weaknesses of the competitors

2.3 customer profile

The marketing and sales department will ensure that the contacts of the clients and

customers are noted so as to keep a track of the regular customers. This will provide an

accurate record of the customers profile with the aim to increase profits through sales.

My competitors may not be having the customer profiles and they just assume the levels

of demand in the market. Thus the YCSC (U) Ltd hopes to use its customer profile to hit

the competitors from the market. We will also deliver our products and services to the

individuals in need.

CHAPTER THREE.

4

Competitor strength weakness

Hosanna real estates affordable prices delayed deliveries

Jomayi flexible management low qualities

Semma properties good quality few products provided


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3.0 COMPANY OVERVIEW

Yaweh constructions and surveying company (U) Ltd is the name that the project intends

to establish. This company will be set-up to fulfill the desires of the shareholders and

other stake holders as well as satisfying the needs of our customers and clients.

During the study the company examined a number of areas such as; location and financial

aspects, marketing aspects, technological, social and economic aspects of projects in the

area it is entitled to serve.

YCSC (U) Ltd is a construction company that will provide products and services which

will include installation of all business operations like electrical, data information system,wreaking services, office building, parking lots and garages, arcades and government

contracts.

The planned business will exist as a private limited company owned by a trustworthy

group of entrepreneurs who purchase and become shareholders.

Besides the economic and social benefits, the company will save the government from

the increasing unemployment yet they have the experience and qualifications. And

further attract investors who will finance the project thus increasing the funds available

for its operations.

3.1Business Location

The proposed projects headquarters will be located in Bugoloobi. This was issued by the

suggestion of the members due to the available space to accommodate the operations of

the company, good roads and future expansion. The company will also enjoy the

economies of scale due to other companies in the area thus the benefits will be reduced

cost of utilities and access to stable markets.

3.2 Company Objectives

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i) providing high quality

ii) creating a strong relationship with the customers and clients

iii) building long term ties with the suppliers

iv) ensuring deliveries on time

3.3 Company ownership

Yaweh constrictions and surveying company will exist as an equal partnership of Filly

John Paul, Nabaterega Safina, Singh Patel, Jack Daniels. The company will focus further

still to recruit other people like investors as opportunities arise.

3.4 Company Background

The partners have known each other for over five years. Safina and filly began working

in the construction business immediately out of high school as supervisors. Mr. Patel

Singh did his civil engineering degree in India where he worked in several companies

before coming to Uganda on a contract with the zzimwe constructions after which he got

an MBA hence becoming the general manager for zzimwe constructions for over six

years. Over the years, he met friends who realized that Uganda lacked a commercial

construction company that could be competent and provide consistent high quality work

and on time deliveries thus wishing to capitalize this opportunity.

3.5 Management Experience

The company will consist of a vast professionals dedicated towards customer satisfaction.

Filly John Paul holds a degree in business studies with a working experience for over

four years working in hosanna estates as a supervisor in the finance department hence

finances will be effectively handled. Patel Singh 55years holds an MBA, degree in civil

engineering and a diploma in project management. This is evidenced in his CV where he

has worked in a number of departments thus getting the ability to deal with the vast

complex organizational activities with many employees.

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Nabaterega safina 35 holds a degree in human resource management, a diploma in public

relations. She worked as the assistant supervisor as a human resource manager for the

sugar corporation of Uganda and a public relations officer with the akaboozi fm and news

papers for the past 10 years.

SSekijjoba Daniels 40 holds a degree in marketing and supply chain management where

he is a member of the procurement society in Uganda. He worked with khamis industries

as the sales director and a procurement officer in Kyambogo University for the last nine

years.

3.6 venture prospects

The gap in the market that was realized during the research and development study, gives

an assurance for the success of the company. Hence seeking to meet the future needs of

the target groups so as to fulfill the market gap that is not exploited.

3.7 legal status

The company will be incorporated on the 8 June 2016 as a limited liability company. The

shareholders will contribute share capital of $97500 upon the registration by the registrar

of companies.

CHAPTER FOUR

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4.0 PRODUCTION / SERVICE PLAN

4.1 Products / services.

YCSC (U) Ltd provides commercial construction services, with a primary focus on

large urban structure development. This includes the following types of constructions;

office buildings, parking lots, apartments, arcades and government contracts.

YCSC (U) Ltd intends to provide the installation of all the required business such as

electrical, lightening, heating and data information system as well as wreaking services

4.2 Uniqueness of services

The services / products of the company will be appreciated by both the local and

international market as our main aim is to provide high quality services in the commercial

construction industry at a very competitive cost and ensuring on time delivery than the

current competitors in the central region.

4.3 Development of services / products.

Most times the construction process takes a long period of time due to the complex

productions. We seek to shorten the lead time so as to create satisfaction to our

customers. This will be achieved by setting up long term ties with its suppliers so as to

create sourcing efficiency that will minimize supply delays.

With the research carried out, the company hopes to re-engineer its services continually.

This will include the application of other unique features to grab the demand of the

customers.

4.4 Draw backs

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The services and constructions made by the company will have a price slightly higher

than that of the existing firms due to the high quality that they will contained.

4.5 competitive comparisons

YCSC (U) Ltd has quality assurance as regards to the recently research that was

undertaken. All the services offered posses at least an added unique feature different from

its competitors. This helps the company to provide the customers with the value equal to

the price they acquire the services.

The company also intends to enter contracts with the new vision and other companies as

regards to advertise and promote our services. Through this relationship, our products and

services will be published to the general public so as to create awareness of our existence

to the public. This will help to enhance the marketability of our products and services

both within and outside the country.

4.6 future expansions

With the thorough research and development, the customers will be requested to

comment on the services of the company. By filling in the answers to the self designed

questions and during the interviews. The information gathered will act as a basis for

further expansion so as to asses customers needs, wants and desires.

CHAPTER FIVE

5.0 MARKETING PLAN

5.1 Market Analysis Summary

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The total market demand in Uganda Commercial construction industry sector is huge .The total

demand is estimated as 173 billion for fiscal year 2013. For Bugolobi the total demand is shs.24.6

billion .Even with YCSC expects large scale growth due to its contacts and reputation, the

market is so large that by the end of 2013 YCSC will project market share for the other areas in

Kampala hence urban areas as well as in foreign countries.

YCSC (U) Ltd has a focus on meeting the development demand for urban located properties

YCSC will hope to bid on government project as resources permit.

The market Analysis table shows the estimated total number of potential customers in the two

states in which the company will be operating. The majority of the company's revenue lies on

commercial contracts

This market sector provides significant growth and ample project for the future.

Market Analysis

year1 year2 year3 year4 year5

Potential Customers Growth CAGR

Commercial Buildings 12,000 13,080 14,257 15,540 16939 5.00%

Government Contracts 5,500 5,775 6,064 6,367 6,685 2.79%

Total 17,500 18,855 20,321 21,907 23,624 7.79%

5.2 Market Segmentation

The company will mainly focus on two market sub segments of the; commercial construction

industry segment .The first will be the urban project segment and the second will be the local,

state and federal government contracts segments.

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Urban Project

YCSC (U) Ltd focuses on construction and wreckages/re-construction projects with urban

locations. Large office buildings will make up a majority of these projects. YCSC desires to

establish and maintain long-term relationship with clients to develop a referral network and future

repeated business. Recent industrial trends seem to suggest that this segment will retain a relative

high growth rate for the future.

Government Contract Projects

Government contracts projects make up approximately 15% of revenues. High visibility and

competitive bids are critical to capture this segment of the market .One of the reason why this

segment is attractive is its relative stability. Contracts from these sources are not dependent on the

current market conditions and will provide revenue even during an economic down turn.

5.3 Target Market Segment Strategy

YCSC (U) Ltd will focus on its target market, the large urban areas, by maintaining and

increasing its relationship based with commercial real estate clients. By offering a unique and

impeccable level of workmanship along with competitive costs. YCSC will be to procure and

maintain a healthy level of market share.

Market Needs

As for companies located in down town urban areas are continually modernizing and growing ,

the demand for commercial construction services has steadily increased over the past 20 years

and the need for uniquely-savvy commercial construction services is significant hence companies

seek to maintain a professional image.

5.4 Service Business Analysis

The construction industry is a capital-intensive field that requires large investment in long-term

assets such as bulldozers, cranes, cement mixers, etc. In addition, variable material costs such as

I-beams, roofing tiles, paint etc., are also very high .This means that for the commercial

construction segment, which will focus on large scope projects, that entry / exit into the

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industry is quite difficult.

The industry is further fragmented with a vast number of very small companies. Most do not

employ more than 40 individuals. YCSC will be employing a significantly large number beyond

its first year in operation, and will therefore have the ability to bid the large and most profitable

contracts.

Due to such large number of companies and the intense competition, margins are relatively low

for the construction business as a whole. For the commercial segments, the margins are some how

higher due to the high cost of construction.

Because each building is a unique product, the cost are very high relative to other assets and the

clients need such assets at a specific time, the company's reputation in quality on-time delivery,

and cost are the crucial element used in assessing a contractor.

In this area the major competitors in the commercial segments are JOMAYI Construction,

Semma properties and Hosanna estates. Each of these companies focuses on the same type of

clientele as YCSC (u) Ltd. However, YCSC will offer more services, such as paving , road

/highway construction, and environmental construction .With the exception of Hosanna each of

these competitors has such a broad range of customers that a more focused company.

5.5 Competition and Competitive Edge

There more than 1000 commercial contractors nationwide .YCSC will primarily compete on the

basis of its levels of workmanship and relationships among the commercial real estate

community.

Large competitors are providers of services to a broad range of commercial, industrial, utility, and

institution customers, typically through principal operating subsidiaries and joint ventures. The

specialties of our competitors are;

Design installation, integration, start-up, operation and maintenance of distribution

system for electrical power.

Low-voltage systems such as fire alarm, security, communications and process control

system.

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Voice and data communications system.

Heating, ventilation, air conditioning refrigeration and clean-room process ventilation

system.

Plumbing process and high piping system.

Some competitors also provide services needed to support the operation of customers facilities.

These services include;

Site-based operations and maintenance.

Mobile maintenance and services.

Mall modification and retrofit projects.

Consulting, program development and management for energy systems and themaintenance of facilities.

Facility services are being provided to a wide range of commercial industrial utility and

institutional often including those at which construction services have been provided and others at

which construction services have been provided by other contractors. Facilities services are

frequently combined to provide integrated services packages, which include mechanical and

electrical services.

Mechanical and electrical construction services and facilities services are typically offered to

corporations, municipalities and other governmental entities, owners/developers and tenants of

buildings. Companies are also providing these services indirectly acting as subcontractors to

construction managers, general contractors, systems suppliers and others subcontractors. While

facilities services business is also highly fragmented, a number of large corporations, such as

Johnson controls, inc. and the Flour Corporations, are engaged in this field, and there are other

companies seeking to consolidate facilities services businesses.

5.5 Competitive edge

The competitive edge and the Yaweh construction and surveying company (U) ltd is its book of

contacts which make up a healthy referral network, and its competitive cost on projects.

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5.6 Strategy and implementation summary

YCSC (U) ltd will succeed by providing high quality craftsmanship at a competitive cost, within

initially promised timelines. To implement this strategy,

YCSC will seek to create a highly efficient, rapidly responsive project implementation and

tracking department within each office. By forming close long term ties with its suppliers, this

will create sourcing efficiencies that will minimize supply delays. It is planned that each of the

offices will be provided with equipments, maintenance, design, and infrastructure so as to make

them each self sufficient profit centers.

A bonus and profit sharing systems, with the benefits clearly defined for everyone, will be used to

promote the company goals at all levels.

Finally the company will seek to institute an ongoing training program to promote the most

promising people in the company and to retain a standard of excellence in workmanship.

5.7 Sales strategy.

As the table shows, YCSC (U) Ltd plans to deliver contract revenue of approximately $40 million

in the first years, $51 million in the second year and $65 million in the third year of the plan.

Sales forecast

Unit sales year1 year2 year3

Commercial buildings 19 22 25

Governmental contracts 6 7 9

Total unit sales 25 29 34

Unit prices

Commercial Buildings $2,000,000,000 $2,200,000,000 $2,420,000.00

Governmental Contracts $500,000.00 $550,000,000 $605,000.00

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Sales

Commercial Buildings $37,484,763 $47,418,225 $59,984,054

Governmental Contracts $3,050,000 $51,268,225 $5,445,000

Total Sales $40,534,763 $51,268,225 $65,429,054

Direct cost of sales year1 year2 year3

Commercial Buildings $16,868,143 $20,368,283 $24,594,702

Government Contracts $1,525,000 $1,837,500 $2,480,625

Subtotal direct cost of sales $18,393,143 $22,205,783 $27,075,320

5.8 Ongoing market evaluation

The level of profitability will be ascertained by carrying out research so as to obtain feedback

from customers as regards to their needs, and improvements in the services, re-engineering will

be done.

Measurements will be made on the level of demand to our segment markets on a continuous

reason basis being to correct deviations in case of any.

CHAPTER SIX

6.0 MANAGEMENT PLAN

The YCSC (U) Ltd will be managed by a management team which will be under the supervision

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of the Board of Directors who are the companys planning and authoritative staff responsible for

formulating and implementing policies and principles especially those that need special

consultation. The rest of the work shall be done by the managers and their assistants plus other

elected official members, some of which include the company lawyers and secretary.

6.1 Organizational structure

The company lawyer will be responsible for all the legal matters and written agreements like

contracts.

BOARD OF DIRECTORS

PROJECT MANAGER

COMPANY SECRETARY

Human Sales and COMPANY LAWYER Accounting and Finance Relations

Resource Marketing

6.2 Board of Directors

This will be made up of 10 members with 4 share holders and 4 departmental head assistant

managers.

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Share holders Post

Filly John Paul Accounting and Finance manager

Singh Patel Project Director

Ssekijjoba Daniels Sales and marketing manager

Nabaterega Safina Human Resource Manager

Departmental Assistants

Mr. Ssevvume Augustine Accounting and Finance

Madam Makumbi Patrick Project manager

Mrs. Nabukenya Rodah Sales and marketing

Madam Namugga Josephine Human Resource Manager

Company lawyer -Madam Nulugge Diphine

-Mr. Ssumbwe jonny

Company secretary; Madam kyembi Rose

Madam Namusooli Justine

6.3 Management Team

The project director, Mr. SINGH PATEL is an experienced person with good past records. He

acquired a Masters in Business Administration, a degree in Civil engineering, and a diploma in

project management. He has worked with various construction companies as a project manager

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and as a financial analyst. Thus has the ability to deal with the vast complex operations of the

company and with many employees.

Makumbi patrick the assistant holds a degree in Electrical engineering. She worked as an

equipment operator with the Real estates for the past nine (9) years and has clean records in the

previous place of work.

The Accounting and Finance manager, Filly John Paul holds a degree in Business Studies, a

certificate in ACCA. He has worked with Hosanna real estates as the financial manager for the

last fifteen (15) years.

Mr. Ssevvume Augustine, the assistant accounting and finance manager, holds a degree in

Accounting and Finance. He acquired his experience in this field when he was working with the

National water and sewerage cooperation for the past ten (10) years.

The Sales and Marketing manager, Ssekijjoba Daniels, holds a bachelor in marketing and supply

chain management, he is also a member of the procurement society of Uganda. He worked with

Khamis industries (U) Ltd as the Sales Manager and as a procurement officer with kyambogo

university for the past (9)years.

Mrs. Nabukenya Rodah, the assistant manager for Sales and marketing, also holds a degree in

marketing and Supply Chain Management. she worked as a Sales person for Haven Products for

the past eight (6) years.

The Human Resource Manager, Nabaterega Safina has a degree in Human Resource

management; Sunderland University. she has worked with the Kaboozi fm as the public relations

officer and as the assistant Human Resource Manager with the sugar corporation of Uganda Ltd

for the last fifteen (10) years. He is a dedicated person and highly determined to manage the

public relations, as regards to the past work experience. This will help boost the companysimage.

Madam Namugga Josephine, the assistant Human Resource Manager, holds a degree in

Management science. She worked with the Monitor Publications for ten (4) years.

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The company lawyers, Madam Nalugge Diphine and Mr. Ssumbwe Jonny both hold a degree in

Laws, Diploma in Law practice at the Law Development center. They are associates Advocates of

Lagoon company Advocates.

Madam Kyembi Rose, the company secretary, holds a degree in secretarial services Kyambogo

University. She has been working with UNGA MILLERS (U) Ltd as the general secretary for the

past five (8) years.

6.4 Labor Management Techniques

The management of Yaweh construction and surveying company will be well equipped with all

the labor programs to increase on the skills of the employees to enable them undertake the tasks

assigned to them effectively. The company will impart thorough training on the newly recruited

employees for a period of five months and provide thorough education for the employers. This

will help in enhancing and building on the skills and competence of the staff.

Management will give promotions, carryout job rotations and transfers, performance appraisal

and those that do not abide by the set rules and regulations in order to enhance performance and

boost the morale of the employees. With this, the company will be able to achieve its objectives

through the utilization of Human resource.

6.5 Duties and Responsibilities of the department managers

Human Resource Manager

a) Recruit and train new employees.

b) Conduct programs for performance appraisal.

c) Attach duties and responsibilities to all positions.

d) Draft a Human Resource Work Pan.

e) Retain, transfer and promote staff at all levels.

Sales and Marketing Manager

a) Draft a sales and marketing plan.

b) Conduct a market survey.

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c) Set prices to the services and products of the company.

d) Ascertain and provide the revenue to the Accounting and finance manager.

e) Supervise and monitor all the sales persons.

Accounting and finance manager

i. Transact and record all the activities with the help of accounting clerks.

ii. Draft a financial plan.

iii. Prepare and submit in the financial reports to the Board of Directors of the company.

Public relations manager

i. Provide the answers to the questions asked by the public about the companys products.

ii. Create a good relationship between the company and the public.

iii. Give out company brochures to the public.

6.6 Management compensation

The salary of the key management team is as follows;

Position salary to be paid

Project manager $296,650

Financial manager $296,650

Sales manager $296,650

Human Resource Manager $296,650

Company lawyer $246,650

Company secretary $196,650

Each share holder will contribute an amount equal to $97500 for the companys planned stock

ownership.

Comparison

In comparison with the gains that the key management team members were receiving in their

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previous jobs, the Yaweh Construction and Surveying Company (U) Ltd will be offered higher

salaries to its employees plus other allowances like: food, transport, and accommodation.

6.7 Other investors

As more opportunities arise, there are greater hopes of obtaining potential share holders to join

the company.

With the experience and ability of the management team, the Company is not in danger since they

are all hard working, self motivated and ready to work tirelessly in order to obtain in a good

reputation of the company. This can stimulate the investors to invest in the company.

The accounting and finance manager intends to undertake the decisions of allocation, financing,

Liquidity and Divided policy; and also to manage effectively the finances of the company. This

will create a positive relationship with the lending institution.

6.8 Critical risks, problems and assumptions

The Yaweh Construction and Surveying Company (U) Ltd is likely to encounter some critical

risks and problems but the management team is ready to find solutions for each of them.

These risks can be categorized into;

Financial risks

Shortage in cash before securing the orders.

Difficulties in acquiring the needed bank credits.

Running out of cash after orders pour in.

Marketing risks

Unfavorable market trends.

Sales projections not achieved.

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Potential price cutting by competitors.

Construction risks

Construction costs in excess of the estimates.

Long lead times in the procurement of the necessary construction raw materials.

6.9 Solutions to the risks and problems

Increasing funds through obtaining grants and borrowing from friends and relatives.

Conducting thorough research to know the market share of the products and services

provided by the company.

Maintain a high level of liquidity through limiting on the credit sales.

CHAPTER SEVEN

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7.0 OPERATING PLAN

7.1 Operating Cycle

Since the construction lay outs and processes are well established then the operating cycle is

expected to move on little or no difficulties. The construction of strip malls will take one and half

years for commercial parking lots and garages will take nine months. While the lead time for the

services provided like; installations of business operating systems e.g. lighting, electrical, heating,

refrigeration and data information system will take a maximum of six months.

The seasonal construction loads will be handled without leading to severe dislocation by building

part-time help in the peak periods, and building long term ties with our suppliers of the

construction materials.

7.2 Geographical Location

Yaweh Construction and surveying Company (U) Ltd will be located in Bugolobi a suburb in

kampala district. This location was selected due to the well established transport and

communication network that eases the movement of construction materials from the market to the

place at which the materials are required. There is accessibility to the market for the services and

constructions made. Due to the existence of other firms in the industry, the company is more

likely to enjoy the economies of scale.

7.3 Facilities and Improvements

The company intends to obtain the necessary facilities in the first year of operation. These

facilities include: purchasing non-current assets like buildings, machinery, motor vehicles etc. the

firm will be expanded in the future say, in a period of three (3) years as by the predicted sales

production.

7.4 Strategy and plans

The construction process involves; mixing, grinding, softening, baking and building. This can be

difficult in the absence of a well designed construction lay out. YCSC (U) Ltd intends to close

long term ties with potential suppliers so as to avail sourcing efficiencies in order to minimize

delays in the supply of the construction materials.

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The labor skills are availed by outsourcing the qualified personnel from outside the company and

by sponsoring the employees for further studies to build on the skills that they possess.

The following are the overheads that the company will incur; electricity cost of indirect materials,

construction wages, and other expenses. Some of the materials to be used in the construction are:

water, cement, concrete, stones, nails, iron sheets, bricks, paints, windows, ventilators, I- beams,

roofing tiles, etc.

7.5 Quality assurance

Quality assurance techniques will be installed in inventory and construction output. The

construction control technique is to be carried out at each process during the construction with the

view to eliminate material losses at any stage. The inventory control technique will be instituted

by the procurement and stores personnel to ensure that the construction materials received are as

per order made. This helps to take course on the receipt of the customers order.

7.6 Regulatory and legal issues

The company enjoys favorable licenses and zoning permits. Environmental approval have also

been received to start operation.

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CHAPTER EIGHT

8.0 FINANCIAL PLAN

The following documents will be the basis of financial planning and decision making for the

company; the balance sheet, cash flow statement, income statement, business ratios and other

necessary documents. These will help to predict, compare and evaluate the earning potential of

the company.

8.1 Investments and financing

YCSC (U) Ltd expects to raise $390,000 as its own capital, and to borrow $4.2 million

guaranteed by the Cairo bank as a ten-year loan. This provides the bulk of the current financing

required for company growth.

8.2 Break-even Analysis

YCSCs break-even analysis is based on the average of the first-year figures for total sales by

project, and by operating expenses. These are presented as per- project revenue, per-project cost,

and fixed costs. These conservative assumptions make for a more accurate estimate of real risk.

Break even analysis

Monthly Units break even 1

Monthly revenue break even $1,966,721

Assumptions:

Average per unit revenue $1,621,390.50

Average per unit variable cost $735,725,73

Estimated monthly fixed costs $1,074,298

8.3 Sales forecast for three years

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YEAR 1 YEAR 2 YEAR 3

Total unit sales 25 29 34

Total unit prices $2,500,000 $2,750,000 $3,025,000

Total sales $40,534,763 $51,268,225 $65,429,054

Total direct unit cost $1,150,000 $1,207,500 $1,267,875

Total direct cost of sales $18,393,143 $22,205,783 $27,075,327

8.4 YCSCS PROFORMA BALANCE SHEET FOR THREE YEARS


Assets

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Non Current Assets

Long-term Assets $4,600,000 $8,200,000 $13,500,000

Accumulated Depreciation $300,000 $1,400,000 $3,000,000

Total long-term Assets $4,300,000 $6,800,000 $10,500,000

Current Assets

Cash $6,817,122 $18,293,084 $33,561,391

Other current Assets $100,000 $10,000 $10,000

Total Current Assets $6,917,122 $18,393,084 $33,661,391

Total Assets $11,217,122 $25,193,084 $44,161,391

Liabilities and capital

Current Liabilities

Accounts payable $1,167,159 $2,766,028 $3,364,481

Subtotal Current Liabilities $1,167,159 $2,766,028 $3,364,481

Non-current $4,233,200 $2,766,028 $3,233,200

Total Liabilities $5,400,359 $6,599,228 $6,597,681

Paid-in Capital $390,000 $390,000 $390,000

Retained earnings ($1,193,284) $5,426,763 $18,203,855

Earnings $6,620,047 $12,777,092 $18,969,854

Total capital $5,816,763 $18,593,855 $37,563,710

Total liabilities and capital $11,217,122 $25,193,084 $44,161,391

Net worth $5,816,763 $18,593,855 $37,563,710

8.4 PROJECTED PROFIT AND LOSS

As the Highlights table shows below, YCSCs sales are expected to increase by $10,000,000 each

year. The following profit and loss table demonstrates YCSCs expectation of continuing steady

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growth over the next three years of operation.

8.6 YCSC (U) LTD PROFORMA CASH FLOW FOR THREE YEARS

Year1 year2 year3

Subtotal cash from operations $40,534,763 $51,268,225 $65,429,054

Subtotal cash received $40,534,763 $51,268,225 $65,429,054

Expenditures from operations $32,448, 557 $1,546,664 $44,260,747

Additional cash spent $2,100,000 $4,000,000 $5,900,000

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Sales $2,500,000 $12,500,000 $22,500,000

Cost of sales $1,150,000 $7,050,000 $5,900,000

Gross margin $1,350,000 $5,450,000 $16,600,000Expenses

Pay roll $296,650 $321,650 $346,650

Sales and marketing $919;950 919,950 $69,950

Depreciation 425,000 450,000 $25,000

Utilities $700 $900 $1100

Pay roll taxes $44,498 $69,498 $94,498

Total expenses $1,286,798 $1,361,998 $537,198

Profit before interest and

tax

$63,203 $666,203 $1,163,203

PBITDA $88,203 $688,203 $1,163,203

Interest expenses $35,277 $35,277 $35,277

Taxes incurred $6,981 $2,81981 $281,981

NET PROFIT $1,286,798 $1,546,664 $2,668,664


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Subtotal cash spent $35,217,641 $39,792,263 $50,160,747

Net cash flow $5,317,122 $11,475,962 $15,268,307

Cash Balance $6,817,122 $18,293,084 $33,561,391

8.7 BUSINESS RATIOS

The following table presents important ratios from the construction industry, as determined by the

standard industry classification (SIC) index #1542, Non residential construction.

YCSC (U) LTD RATIO ANALYSIS FOR THREE YEARS

Year1 year2 year3 industry

profile

Sales Growth 0.00% 26.48% 27.62% 2.30%

Present of total assets

Other current assets 0.89% 0.40% 0.23% 37.80%

Total current assets 61.67% 73.01% 76.22% 86.20%

Long-term Assets 38.33% 26.99% 23.78% 86.20%

Total Assets 100.00% 100.00% 100.00% 100.00%

Current liabilities 10.41% 10.98% 7.62% 47.40%

Non current liabilities 37.73% 15.22% 7.32% 12.90%

Total liabilities 48.14% 26.19% 14.94% 60.30%

Net worth 51.86% 73.81% 85.06% 39.70%

Percent of sales

Sales 100.00% 100.00% 100.00% 100.00%

Gross margin 54.62% 56.69% 58.62% 16.30%

Selling, General& 38.29% 31.76% 29.63% 8.80%

Administrative expenses

Advertising expenses 0.15% 0.20% 0.20% 0.30%

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Profit before interest 22.82% 34.02% 39.20% 1.50%

And Taxes

Main ratios

Current 5.93 6.65 10.00 1.83

Quick 5.93 6.65 10.00 0.92

Total Debt to Total 48.14% 26.19% 14.94% 60.30%

Assets

Pre-tax Return on 151.75% 91.62% 67.33% 3.20%

Net worth

Pre-tax return on 78.69% 67.62% 57.27% 8.10%

Assets

Additional Ratios

Net profit margin 16.33% 24.92% 28.99% n.a

Return on Equity 113.81% 68.72% 50.50% n.a

Activity Ratios

Accounts payable 25.75 12.17 12.17 n.a

Turnover

Payment Days 27 21 27 n.a

Total Assets 3.61 2.04 1.48 n.a

Turnover

Debt Ratios

Debt to Net worth 0.93 0.35 0.18 n.a

Current liab to liab 0.22 0.42 0.51 n.a

Liquidity Ratios

Net working $5,749,963 $15,627,055 $30,296,910 n.a

Capital

Interest coverage 21.83 43.24 72.59 n.aAdditional Ratios

Asset to sales 0.28 0.49 0.67 n.a

Current Debt/ 10% 11% 8% n.a

Total Assets

Acid Test 5.93 6.65 10.00 n.a

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APPENDIX 1

C.V OF THE PROJECT DIRRECTOR

CURRICULUM VIATE

BIO DATA

Name: Mr. PATEL SINGH

Date of birth; 24th July, 1957

Marital status: married

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Telephone: 0774494263

Email address: [email protected]

Language spoken: English, Luganda

ACADEMIC QUALIFICATIONS

YEAR INSTITUTION AWARD

1990-1991 University of India Master in Business Administration

1987-1989 University of India Degree in Civil Engineering

1986-1987 Cavendish University Diploma in project management

1984-1985 Mackay college school Uganda Advanced Certificate of Education

1980-1983 Bulo Citizen school Uganda Certificate of Education1973-1979 Hill preparatory p/s Primary Leaving Examination

WORK EXPERIENCE

I worked with several firms such as Trupati state highway system as the general manager for four

years, JOMAYI property consultants as a financial analyst for three years and as an equipment

operator with UMEME for seven years.

KEY SKILLS

Analytical skills

Communication skills

Computer skills

HOBBIES

Reading news papers

Listening to current news

Discovering new ideas

REFEREES;

a) Mr.Musana Desire

Managing Director-Trupati state highway system.

07728889999

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b) Mr. Nsubuga Martin.

Managing Director-orange Free State

0772-345678

c) Madam Mukoli Grace

Managing Director JOMAYI

0712-567890

I declare that the above is the real truth about me.

Signature..

PATEL SINGH

Project director

APPENDIX 2

APPLICATION FOR A LOAN

YAWEH CONSTRUCTION AND SURVEYING COMPANY (U) LTD

P.O BOX 21812

Kampala (U)

Tel:

Fax:

E-mail:

Our ref:

Your ref: Date:

To:The Manager

Small Business Association

Kampala (U)

Through:

Loan Manager

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Small Business Association

Kampala (U)

Dear sir/Madam,

RE: APPLICATION FOR A LOAN

As the project director of Yaweh Construction and survey Company (U) Ltd, I hereby request for

a loan worth $4.2 million. This will be part of the capital sought to be invested to facilitate the

funds reserve available for our operations.

It is a pleasure to inform you that your funds will be put to productive investments so as to gain

our core objectives. I promise to abide by the written terms of the contract.

I will be very grateful if my application meets your positive consideration.

Yours faithful,

PATEL SINGH

Project Director

APPENDIX 3

21812

The republic of Uganda

Certificate of incorporation

I certify that YAWEH CONSTRUCTION AND SURVEY COMPANY.

has this day incorporated with limited liability.

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Dated at Kampala, this 8thday ofJune the year2016

..

Registrar of companies.

KYAMBOGO UNIVERSITY

SUBMITTED IN BY; FILLY JOHN PAUL

REGISTRATION NO; 10/ U/13904/SBD/PD

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SIGNATURE;

TOPIC; BUSINESS PLAN

DATE; 10th October, 2012.

LECTURER; MRS. BAKIA WAMALA

Documents

Business Pln