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TITLE SUBJECT CODE GROUP MEMBERS : - GARMENT BUSINESS PLAN. : - DED 2013 :-
BUSINESS PLAN
1)
EXECUTIVE SUMMARY
Warsha Garment
Name of business: -
Type of business
Manufacturer
Service Operator
Retailer
Wholesaler
Shirts.
People who are living in Batticaloa Town, Kattankudy, Eravur and its surrounded area
Number of staffs:
2) MARKETING PLAN
2.1) MARKET RESEARCH
2 Customers
4 Competitors
Individuals Retailers prefer different size of shirts. Good quality of shirts. Continuous supply. Low Price. Ancheneyar Garments :Individuals & companies those who are sewing apparel.
II.
Retailer Shops
High price. Some of the whole sellers prefer good quality shirts. Flexible sizes. Availability Interruption in operations Low quality
III.
Wholesalers .
Ahemad Garment :(Kattankudy) Some of the whole sellers prefer good quality of Shirts. Flexible sizes. Higher price Low quality No flexible sizes
2) MARKETING PLAN
2.2) PRODUCT
Product, service or Range of Products/ Services 1. Shirts Quality Color Size Packaging Higher quality shirts. All colors whichever want Different flexible sizes (Small, Medium, Large, Extra Large, Double Extra Large ) Quality pack made by polyester with the label of WARSHA GARMENTS
2) MARKETING PLAN
2.3) PRICE (For manufacturers and service operators)
Details. Product or services Shirt.
Cost How much customers are willing to pay? 410.(Large) 600Rs. 700Rs. per Shirt. (Large) by Individuals. 550Rs. 700Rs. per Shirt. (Large) by Retailers and Wholesalers. 700Rs. 800Rs. per Shirt.( Large) 550Rs. per Shirt.( Large) Relationship with the customers. Cost Cost of production is considerably low. Profit Certain level of Profit. Competitors price. Discount will be given to the following customers or type of customers Regular customers. Relations and Friends. Textiles. Reason for giving discounts To survive within high competition. To increase sales. To maintain a good relationship with the customers. Credit will be given to the following customers or type of customers Individuals. Retailers. and Wholesalers. Reason for giving credit When People ask, giving credit sale opportunity. Allow Credit sale to the regular customer is safety. It is a motivation to again and again purchase.
2) MARKETING PLAN
2.4) PLACE Location
Describe the planned location of the business: Miss. S. Warsha, #10, Bar Road, Batticaloa. This location is chosen for the following reason: The main reason for selecting this place for business is my home near to town. So it is an opportunity to get cloths and other materials very easy. Cost reduction, carrying is easy and continuous supply is possible. My house is near to the main road, and Im using a part of my house as a garment. A lot of textiles are near to my garment, so its easy for my delivery. There is a school also in near to my home, so people who are teaching in there, possible to purchase my shirts. Method of distribution The business will distribute the products to: Wholesalers Individuals By way of: Direct Distribution
Retailers
Others
This way of distribution is chosen for the following reasons: Individuals come to our place and they immediately buy the product. To the wholesaler and retailer we are providing delivery service if they need. Through a person, we are providing this service.
2) MARKETING PLAN
2.5) PROMOTION
DETAILS
COST 500
Name Board in the Name of the shop is written in a small board as Building. Warsha Garment and it is hanged in front of my shop. Talking Through the peoples mouth we informed that we are selling the gee production. Prices of the product is displayed at the window of my shop. Label in the product is also helps to customers. Label contain Name of the Shop. Address. Telephone Number.
02)
03)
Price List
04)
Labels
500
COST 600.00 -
3) FORM OF BUSINESS
The business will operate as a : Sole Proprietorship.
The reason for choosing this form of business is: Easy to start the business. Small amount of capital is enough. More freedom. No need to share the profit with others Own decision making. Low Cost.
Description of skills : There is no need of special skills requirements. Competition is high so better customer relationship is important.
Relevant Experience. : If the staffs have experienced in this field it is better to do this work well, and if the employee have the experience it leads to increase our output.
4) Staff
TASK
Measuring Cutting.
SKILLS AND EXPERIENCE NEEDED Experience is important, or Good skill & Concentration is better. Very Good Experience & Skills for sewing is important. Active person(Working Quickly ), Patient also needed. To be Patient
Sewing
8 Workers.
Hard working, long time work. Long time work. Do the work quickly.
80,000 Rs.
Finishing Buttons
With 2 Worker.
16,000 Rs.
Ironing Packaging
1 Worker. 1 Worker.
Perfect Finishing
Delivery Purchases.
& 1 Worker.
Can able to identify Check the perfect the different quality & finishing of shirts sizes of shirts. Deliver on time. Deliver at the correct time.
Total salary
10
- Nil
The Business will need the following licenses and permits: - Nil
- Nil
(Im not registered my shop, so Tax payment, Employee laws, Licenses, Permits, and Insurance are need not. I dont have knowledge in these formal activities and also my shop is small so there was not need arise for these activities)
Even though Im not registered my shop, I have some responsibility. There are To fulfill the societys needed. Utilizing available resource in the environment. Producing good quality product. Paying reasonable amount to the employees.
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160 hrs. 165 hrs. 160 hrs 150 hrs. 140 hrs. -
16,000 Rs. 80,000 Rs. 16,000 Rs. 6,000 Rs. 6,000 Rs. Total
6,000 Rs 6,000 Rs. 124,000 Rs. 120 hrs. 120hrs 5,000 Rs. 5,000 Rs.
Total pay for time in production. Total hours in production per month
124,000 775
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Hours not in production per month Pay for time not in production -
monthly pay
Employees
COST ITEM
Rs:
Measuring Tapes Packages Scissors Strings Bank interest Pre operative expenses (Name board, Labels, & Registration)
TOTAL INDIRECT COSTS PER MONTH
200 Rs. 2,000 Rs. 600 Rs 1,450 Rs. 1,500 Rs. 2,000 Rs.
7,750 Rs.
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* *
Cloth Buttons
70 Rs. 2 Rs Total
2 Yards 5
2) DIRECT LABOUR COSTS PER ITEM ACTIVITY TIME PER ITEM (MAN HOURS)
10 minutes. 40 minutes 20 minutes 10 minutes 10 minutes 1 & 30 Hrs X 160 Rs. = 240
4) TOTAL COSTS PER ITEM Costs 1) Direct Material 2) Direct Labour 3) Indirect Costs Total Cost Per Item Cost per Item. 150 Rs. 240 Rs. 20 Rs. 410 Rs.
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Sales
DETAILS
69050 7750 76800 115200 72000 264000 71050 5750 76800 115200 72000 264000 72650 5750 78400 117600 73500 269500 Mar 72650 5750 78400 117600 73500 269500 April 74250 5750 80000 120000 75000 275000 May 74250 5750 80000 120000 75000 275000 74250 5750 80000 120000 75000 275000 Jun Jul Feb
15
74250 5750 80000 120000 75000 275000 Aug 75850 5750 81600 122400 76500 280500 75850 5750 81600 122400 76500 280500 Sep Oct
74250 5750 80000 120000 75000 275000 Nov 75850 5750 81600 122400 76500 280500 Dec 949450 5750 95520 1432800 895500 3283500 Total 0
(Rs)
(Rs)
(Rs)
317500
374050
432600
492750
3.Bank loan
CASH IN
4.Cash in from sales 5.cash in from credit sales 6.Any other cash in 7. Total cash in 8.investments on building 1261000 810000
10000
60000
50000
581500
638050
702100
762250
CASH OUT
81500
16
72000
72000
73500
73500
75000
75000
12.Cash for direct labour costs 13.Cash out for indirect costs 14.Pre operative expenses Interest 15.loan repayment 16.Any other cash out 17.TOTAL CASH OUT 50000 2000
115200
115200
117600
117600
120000
120000
7750
5750
5750
5750
5750
5750
1000 10000
1000 10000
1000 10000
1000 10000
1000 10000
1000 10000
1500
1500
1500
1500
1500
1500
943500
207450
205450
209350
209350
213250
213250
317500
374050
432600
492750
552900
614650
681400
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Business premises.
Construction or purchases of building Conversion or reconstruction of business premises Sub Total Sewing Mechines Rollak Mechines Scissors Measuring Tapes Sub Total Name Board Label Registration Fee Sub Total Stock of raw material and finished goods Wages Other costs ( Buttons & Strings) Advanced payment for Suppliers Sub Total Grand Total.
800,000 10,000
810,000 64,000 16,000 1,000 500 81,500 500 500 1000 2,000 200,000
Pre-operative Expenses.
Working Capital.
124,000 2,500
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Required started up capital Sources of startup capital Owners equity Bank loan
Rs 1,261,000
Rs 261,000 Rs 1,000,000
Collateral (if applying a loan) I collateral my own house for loan purpose at Bank of Ceylon , Batticaloa Town Branch.
= Annual Net profit X 100% Total Investment = 949,450 X 100% 1,261,000 = 75.29% = Annual Net Profit X 100% Annual Sales = 949,450 X 100% 3,283,500 = 28.91%
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2. Price
3. Place
4. Promotion
9. Financial Planning
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