2012 Fayseem B.V.B.A Specialist In Sport Goods & Leather Related Garments Retail & Wholesale
FAYSEEM B.V.B.A IS A BRANCH OF FAYSEEM ENTERPRISES
Legal Page Confidentiality Agreement The undersigned reader acknowledges that the information provided by Fayseem B.V.B.A in this business plan is confidential; therefore, the reader agrees not to disclose it without the express written permission of Fayseem B.V.B.A. It is acknowledged by the reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by the reader may cause serious harm or damage to Fayseem B.V.B.A. Upon request, this document is to be immediately returned to Fayseem B.V.B.A. ___________________ Signature ___________________ Name (typed or printed) ___________________ Date This is a business plan. It does not imply an offering of securities.
FAYSEEM B.V.B.A Business Plan
Table Of Contents 1.0 Executive Summary ....................................................................................................................................... 2 1.1 Objectives ................................................................................................................................................. 3 1.2 Mission ...................................................................................................................................................... 3 1.3 Keys to Success ......................................................................................................................................... 3 2.0 Company Summary........................................................................................................................................ 4 2.1 Company Ownership .................................................................................................................................. 4 2.2 Start-up Summary ..................................................................................................................................... 4 3.0 Products ........................................................................................................................................................ 6 4.0 Market Analysis Summary .............................................................................................................................. 7 4.1 Market Segmentation ................................................................................................................................. 8 Chart 4.1: Market Analysis (Pie).................................................................................................................. 10 4.2 Target Market Segment Strategy............................................................................................................... 10 4.3 Industry Analysis ..................................................................................................................................... 11 4.3.1 Competition and Buying Patterns ........................................................................................................ 11 5.0 Strategy and Implementation Summary ........................................................................................................ 12 5.1 SWOT Analysis......................................................................................................................................... 12 5.1.1 Strengths.......................................................................................................................................... 12 5.1.2 Weaknesses ...................................................................................................................................... 12 5.1.3 Opportunities .................................................................................................................................... 12 5.1.4 Threats ............................................................................................................................................. 13 5.2 Competitive Edge ..................................................................................................................................... 13 5.3 Marketing Strategy................................................................................................................................... 13 5.4 Sales Strategy ......................................................................................................................................... 14 5.5.0 Sales Forecast ................................................................................................................................... 15 5.6 Milestones ............................................................................................................................................... 17 Table 5.6.1: Milestones .............................................................................................................................. 17 Chart 5.6.2: Milestones .............................................................................................................................. 17 6.0 Management Summary ................................................................................................................................ 18 6.2 Exit Strategy............................................................................................................................................ 19 6.2.1 Assess your options ........................................................................................................................... 19 6.2.2 Sticking with Survival ........................................................................................................................ 20 6.2.3 Mergers ............................................................................................................................................ 20 6.2.4 Close ................................................................................................................................................ 21 7.0 Financial Plan............................................................................................................................................... 22 Table 7.1: Start-up Funding ........................................................................................................................ 22 7.1 Break-even Analysis ................................................................................................................................. 23 Table 7.2: Break-even Analysis ................................................................................................................... 23 7.3 Projected Profit and Loss .......................................................................................................................... 24 Table 7.3.1: Profit and Loss ........................................................................................................................ 24 Chart 7.3.2: Profit Monthly ......................................................................................................................... 25 Chart 7.3.4: Profit Yearly ............................................................................................................................ 25 Chart 7.4: Gross Margin Monthly ................................................................................................................. 26 Chart 7.5: Gross Margin Yearly ................................................................................................................... 26 7.6 Projected Cash Flow ................................................................................................................................. 27 Chart 7.6.1: Cash ...................................................................................................................................... 27 Table 7.6.2: Cash Flow ............................................................................................................................... 28 7.7 Projected Balance Sheet ........................................................................................................................... 29 Table 7.7.1: Balance Sheet ......................................................................................................................... 29 Table 7.9: Sales Forecast ..................................................................................................................................... 1 Table 7.10: Personnel .......................................................................................................................................... 1 Table 7.11: Profit and Loss ................................................................................................................................... 1 Table 7.13: Balance Sheet.................................................................................................................................... 3
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FAYSEEM B.V.B.A Business Plan
1.0 Executive Summary The Board of Director has decided to open a branch in Brussels, Belgium to ensure that the company expand its brand in the euro area. The new branch will be called Fayseem B.V.B.A. The mandate of the business is to sell sport goods and leather related products.
The reason for the board deciding to establish a branch in Brussels is due to the following factors:
Strategic Location Infrastructure Smart Taxation Policy Quality of the Work Force Helpful Authorities Quantity of Customers
Belgium is a suitable geographical location; it has a multicultural population and a good history accounts for the country’s wide international character. As a crossroad and centre of trade for centuries, Belgium has preserved the best aspects of the Latin, German and Anglo-Saxon culture. As a result, it is a very modern country with highly developed infrastructure and an excellent standard of living. Moreover, the capital city of Brussels is like no other. As the decision making heart of Europe, it has become an international capital where worldwide leaders meet to bring influence and do business, meanwhile it remains small enough to allow its inhabitants to enjoy the advantages of an averagesized city. The intention to start this business in Brussels is feasible because the brand has already been established in Africa and the middle east, and the directors believe that the company’s natural and organic way to expand the business further is to move into Europe and they believe that establishing Fayseem B.V.B.A in Brussels is most important in order for the company to stamp its mark in Europe. This is also with the intention of adding more retail stores in Paris, London and Milan within 3 years. This new branch will help Belgium’s economy by: Providing services & goods to the country’s consumers Provide jobs for the economy Provide an initial €200,000 investment to the economy and possibly further investments Add tax to the country
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FAYSEEM B.V.B.A Business Plan
1.1 Objectives Fayseem B.V.B.A primary objective is to open a branch in the heart of Brussels in order to:
Establish its brand in Europe Providing cheap quality sports good and leather related products to the Belgian nation Enhance sales growth
1.2 Mission To become the sports equipment supplier of choice based on product expertise, price, quality, and level of service, by developing a long term relationship with our customers. Become the "family expert" for sporting goods and leather related products by treating customers like friends and family and by maintaining an experienced, knowledgeable, and caring staff that can help the customer make the right purchase for them. 1.3 Keys to Success The keys to success in Fayseem B.V.B.A business are: 1. Offering items of a high quality-value which are not available everywhere. This is essential for maintaining the niche market sectors mentioned in the mission statement. 2. Provide customers with top-notch personalised customer services in an atmosphere of good hospitality. 3. Advertise and promote in areas that our target customer base will learn about our store. 4. Continuously review our inventory and sales and adjust our inventory levels accordingly. 5. Provide for 100% satisfaction of our customers and vendors. Both are very valuable to us and we will design a customer care plan to manage complaints, implement employee and customer feedback, manage supplier accounts, and predict potential conflicts. 6. Establish a visible, accessible and welcoming storefront and website to position us as the premier choice for our products and services within the marketplace and beyond. Ensure through daily management practices the values of Fayseem B.V.B.A mission are followed so that a successful and growth-oriented business is developed and maintained.
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FAYSEEM B.V.B.A Business Plan
2.0 Company Summary The Board of Directors of Fayseem Enterprises Sialkot, Pakistan has decided to open a new branch located in Brussels, Belgium with the aim to establish the brand in the Euro area. The name of the business will be called Fayseem B.V.B.A and its mandate will be to sell quality sports products and leather related garments specialising in footballs, volleyball, boxing equipment, apparel and accessories all imported from major manufacturers in China, Pakistan and India. The company’s registered address in Brussels will be 35 Rue de la Charité 1210 Brussels, which is an urban area of Brussels to ensure that the products it sells are appealing to that community. The quality of our customer services, the lower price point and the lack of competition in the city will allow us to quickly become the major sporting goods retail store to go to for the local individual athlete and various teams, leagues and schools. Fayseem B.V.B.A, while part of the world change, will be family owned and managed. Fayseem B.V.B.A will also have the ability to sell goods on a wholesale basis to various agents within the country to ensure that the company brand is well established. The intention to start this business in Brussels is because the brand has already been established in Africa and the middle east, the directors believe that the company’s natural progression is to expand the business into Europe and they believe that by establishing Fayseem B.V.B.A in Brussels, the company would stamp its mark in Europe, with the intention of adding more retail stores in Paris, London and Milan within 3 years. This in turn will help the country’s economy by the amount of employees that Fayseem B.V.B.A would employ during the year. The amount of investment (€200,000) that the company will bring to the country to setup the business and the company will ensure that all its accounting and tax affairs are adhered to and paid to the Belgian government. 2.1 Company Ownership Fayseem B.V.B.A is a branch of Fayseem Enterprises (Pakistan). Fayseem B.V.B.A will be managed by Mr Fayseem Baig who is one of the directors of the mother company with 65% stake. Mr. Baig will have the full mandate of the company to manage and run the company for the foreseeable future to help establish Fayseem B.V.B.A branch to be located in Brussels. 2.2 Start-up Summary The Start-up costs include:
Store layout (the store and operations) Inventory control, (computers and cash registers) The fixtures & fittings (including displays and appealing store designs) Opening inventory Contingence funds
Start-up costs will be financed Primarily by Fayseem Enterprises. The start-up chart and table show the distribution of the planned funds.
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Table 2.1: Start-up Start-up Requirements Start-up Expenses Accountant Legal Stationery etc. Artistic / Design & Assistance Training Insurance Security Deposit & 1st Month Rent Pre-opening Marketing Fixtures & Fittings Computer Miscellaneous/ Contingency Total Start-up Expenses
€1,000 €2,500 €1,000 €2,500 €3,000 €600 €4,000 €5,000 €4,000 €2,000 €1,000 €26,600
Start-up Assets Cash Required Start-up Inventory Other Current Assets Long-term Assets Total Assets
€27,400 €75,000 €1,000 €70,000 €173,400
Total Requirements
€200,000
Chart 2.1: Start-up
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3.0 Products Fayseem B.V.B.A will sell the latest fashion brand sport goods, apparel, equipment’s and accessories. Consumers will be educated as to the proper size, style, fit and design needed for their particular use. Initially, these sporting goods will be for sports such as football, softball, volleyball, basketball, baseball, boxing and other sports equipments. The products will be manufactured by manufacturers in countries such as china, India and Pakistan. Inventory is tracked through our pros cash register and computerised tracking system. Each day, we will have the records of the style, size and quality of every item sold in the retail and internet stores. The general list of initial products on offer will include the following:
Football Footballs, shoulder pads, knee pads, thigh pads, helmets and gloves Volleyball Volleyballs, volleyball bags, portable scoreboard, knee pads, clipboard, volleyball carts. Boxing Boxing gloves, boxing boots, boxing clothing, boxing head guards, boxing mitts, punch bags Golf Synthetic putting greens, golf bags, golf clubs, gloves Motorbike Assessors Motorbike gloves, motorbike jackets, helmets, leather clothing Future Product Sport related products and leather garments
After the opening of the business, we will look to increase our product line laterally by offering additional product categories. Initially, this will be done to increase revenue in the months that are historically slower for Fayseem B.V.B.A. We will also significantly grow the existing football, volleyball, and boxing line within the first year. We will evaluate introducing other sport products such as kick mitts, cycling gloves, driving gloves, fattish leather flagship tops & fashion trousers, bracelets amongst other sport related leather goods.
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FAYSEEM B.V.B.A Business Plan
4.0 Market Analysis Summary The sporting goods market as a whole is a multi-billion industry, with retail sales of sporting goods reaching â‚Ź45.8 billion. Sales are expected to grow by 10% in 2012 to â‚Ź50.38 Billion. The personal consumption of sporting goods is forecasted to grow at an annual compounded rate of 5.8% between 2004 to 2012. Retail sales at sporting goods stores are very sensitive to the health of the economy, because most sports are a leisure activity, spending on sporting goods therefore correlates strongly with consumer confidence and level of the personal disposable income. The sporting goods market has a myriad of segments that can be categorised by the product, sport, geography, behaviour, participation, organisation and standard demographics. Demographics play a big part in sport goods sales, since population growth and age groups distinctly impact sport participation. Our main sales categories break down customer groups by sport participation, i.e., for which sport(s) the person is buying the equipment because the customers have needs based on the specific sport(s) in which they participate. For example, baseball participants are looking specifically for the baseball equipment, uniforms, trainings aids, etc. We will initially focus on players of basketball, softball, volleyball and football. However, in terms of marketing, we will take different approaches to attracting the attention of potential customers based on their relation to the sport players (customer type) and on their buying method or location be it retail or online. Customer Type: These customers have needs based upon the type of role they play in regards to the sports participants. For example, many times, those making sporting goods purchases are not those actually participating in the sport, but instead are parents, athletic directors, and coaches, therefore, these segments include: individual participants, parents, league representative, independent team coaches, school athletic coaches and directors, sports performance businesses. Retail or online: Retail stores, geographic and demographic divisions are critical, especially in understanding the different needs of our local and online customers. The local and online market appeals to soccer mums who look in the local paper. The convenience factor is a nearby location with great customer service, and a different way online, where convenience may come in the form of free shipping for larger orders, or free telephone assistance in choosing a size. We believe that Fayseem B.V.B.A, with its multiple channels of operation- the retail and internet stores - is well positioned to strategically attract the market. We will first look to increase growth in the market segments we currently have and then look to aggressively penetrate and increase sales to other sports participant segments, especially those that cater to the athletic tastes of aging baby boomers. There is great opportunity for growth in the "customer type" segments, we initially look to
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increase our exposure and products to the metropolitan area. We will approach the 256 million participants nationwide through the internet store, which will be enhanced with an improved user experience and an aggressive web marketing strategy. 4.1 Market Segmentation Fayseem B.V.B.A market is both nationwide via the internet and local, via the retail store, in the metropolitan region of Brussels. Market segmentation for Fayseem B.V.B.A has several layers and can be analysed and targeted from many different angles. The targeted customer market will be segmented in multiple layers as follows: Sports Participation- These customers have needs based on the specific sport(s) in which they participate. For example, baseball equipment, training aids...etc. The National Sport Goods Association (NSGA) wrote in a report on sports participation for those 7 years old and older, that there were over 1.43 million sport participants per year. These are the major sports participation segments initially for Fayseem B.V.B.A. Customer Types - These customer have needs based upon the type of role they play in regards to the sports participants. For example, many times those making sporting goods purchases are not those actually participating in the sport, but instead are parents, athletic directors and coaches. Individual Participants - these are the actual sports participants. Typically, these would be adult participants or older youth who have the technical knowledge and disposable income to purchase sporting goods equipment and leather related products on their own. Parents - Parents buying on their own, or are present during the purchase of over 90% of sporting goods purchases for youth’s ages 5-18 years. This segment can be heavily influenced by their children in regards to the "hot" or best products. They are also the segment in most need of technical assistance from sporting goods store staff. League Representatives - Members of adult and youth athletic associations are responsible for league equipment purchases as outfit for their league teams. Long-term relationships and sponsorship participation are important to this segment. They usually have technical proficiency and want to deal with someone that is on or above their technical level of expertise. This segment is usually well informed about recent product offerings and can be a solid channel for introducing new products. They are also marketing channel to all the participants and parents involved with their league. Independent Team Coaches - Typically those organising and coaching adult sports teams or individual advanced youth team, they are responsible for the design and purchase of their individual team sports equipment. School Athletic Coaches and Directors - Public and private middle and high school athletic directors provide outfit for their teams with high quality sporting goods equipment. Establishing, relationships with this segment is difficult, but can be lucrative if all of the schools sporting goods needs can be met.
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FAYSEEM B.V.B.A Business Plan
Sports Performance Businesses - These are organisations that sell services to enhance the participant's performance in his or her sport. Many times, they operate recreational or training facilities and offer individual or team training programs. Selling equipment to these facilities provides a channel, not only to facilities customers, but also to the many area school and league coaches, who are typically parttime employee of these companies. Retail or Online - It is critical for us as a retail business to understand the demographics of our different sales bases. National - The demography for the internet store is truly nationwide. The potential customers segments are all of the millions sports participants that have access to the internet. Products will be sold and shipped from this site to most of all the cities in Belgium. Metropolitan Area of Brussels - The metropolitan area in Brussels has a population of over 1.8 million, making it the largest in Belgium. Brussels has grown from a 10th-century fortress town founded by a descendant of Charlemagne into a metropolis of more than one million inhabitants. We believe that establishing this business in the Brussels will provide a significantly impact in the communities especially for young people, in terms of accessibility, cheap price and quality of goods. Table 4.1: Market Analysis
Market Analysis 2012 Potential Customers Football Participants Volleyball Participants Baseball Participants Boxing Participants Cycling Participants Other Sports Participants Total
2013
2014
2015
2016
Growth
CAGR
-1%
500,000
495,000
490,050
485,150
480,299
-1.00%
-1%
100,000
99,000
98,010
97,030
96,060
-1.00%
0%
50,000
50,000
50,000
50,000
50,000
0.00%
-1% 1%
200,000 100,000
198,000 101,000
196,020 102,010
194,060 103,030
192,119 104,060
-1.00% 1.00%
11%
480,000
532,800
591,408
656,463
728,674
11.00%
3.66%
1,430,000
1,475,800
1,527,498
1,585,733
1,651,212
3.66%
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FAYSEEM B.V.B.A Business Plan
Chart 4.1: Market Analysis (Pie)
4.2 Target Market Segment Strategy The focus will initially be on the sports goods and sports related leather goods participant segment, because this is Fayseem B.V.B.A's current core competency and the large number of participants, both nationally and locally. We will look to leverage current Fayseem B.V.B.A relationships in this segment and move aggressively to increase sales and margins through a targeted marketing campaign. We will then strategically target other participant segments to try and increase sales during the nonpeak sports goods and sports related leather goods sales months. This is a huge opportunity for growth for the company, as evidenced by the large number of participants present in the other participant segments. Changing tastes in sports and strong sales of sporting goods in recent years partly reflect the changing composition of the Belgium population. In particular, the number of older (and more affluent) people has increased rapidly in the past decade. We believe quickly moving into at least one sport that serves this aging market is critical to meeting sales goals. The "customer type" segments are currently under-served by Fayseem B.V.B.A. Due to the fact that the company has both an internet store and a retail store, it is important to understand the market segmentation and demography on both a national and local level. The internet store has made substantial sales with a weak user presentation experience and basically no web marketing strategy. The analysis of the number of sports participants nationwide, not to mention internationally, illuminates the fact that attracting this nationwide segment through a focused web strategy could bring significant returns. Fayseem B.V.B.A will also approach the local community retail stores or local community markets to buy our products on an wholesale basis.
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FAYSEEM B.V.B.A Business Plan
4.3 Industry Analysis The retail sports products and leather related garments are as vibrant as ever in Brussels because of the increase of urban culture. In addition, several large sport retailers have either opened several retail stores or are in the process of doing so. As a result, Fayseem B.V.B.A does not want to be left out in terms of this opportunity to ensure the growth of the business as well. Successful retail stores are offering quality customers service and a strong assortment of new style of sport equipments. Unlike the other sport stores, Fayseem B.V.B.A will ensure that it has all sports equipments in-store, offered in all price ranges to ensure that the entire familiarity can be satisfied. Our aggressive sales and marketing approach, and the quality and the cheap price point of our products will allow for anticipated significant increase in volumes. 4.3.1 Competition and Buying Patterns According to the FESI the federation of the European sporting goods industry which is based in Brussels, Belgium has over 1800 sport goods manufacturers and retail outlets. However, the overall competitive environment remained fragmented in 2011, having long been in the hands of independent retails or small local chains. Chained outlets and wholesales such as Sports Direct, Lacoste, Diesel, Adidas and Puma maintained a relatively modest presence in Belgium. The top five retailers accounted for a quarter of the overall store based retailing value sales in 2011, with all other players holding individual value share of 1% or less. Local retailers enjoy an impressive progression of their private label offering while non-fashion chains focusing strongly on even exclusively on private label such as Zara, H&M and Decathlon recorded above average growth. The scope for growth in retailing and wholesale is not positive in the short term due to the economical situation in the Euro area. However, Fayseem B.V.B.A is more focussed towards the long term, hence the reason for the company to invest in Belgium by opening a branch in it capital Brussels.
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5.0 Strategy and Implementation Summary As a market follower, we know how to hold current customers and win a fair share of new customers. We would bring distinctive advantages to the target market in location, services and financing. Being positioned as a market follower, we overcome the major target of attack by challengers, by keeping manufacturing costs low and producing good quality products and providing high value services. We would also enter new markets as they open up and define a growth path that does not invite competitive retaliation.
5.1 SWOT Analysis This is essential to understanding the different risk and rewards of any investment. 5.1.1 Strengths Cost advantage Asset leverage Effective communication High Research and Development Innovation Market share follower Strong management team Strong brand equity Strong financial position Supply chain Pricing Reputation management 5.1.2 Weaknesses Low Research and Development Minimum online presence Weak brand 5.1.3 Opportunities Acquisitions Asset leverage Financial markets (raise money through debt, etc) Emerging markets and expansion abroad Innovation Online Product and services expansion Takeovers
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5.1.4 Threats Cheaper technology Economic slowdown External changes (government, politics, taxes, etc) Exchange rate fluctuations Lower cost competitors or imports Maturing categories, products, or services Price wars Product substitution
5.2 Competitive Edge Our main competitive edge is in providing outstanding services to customers. It may not be possible to openly compete with market leaders but by providing services through employees that are well equipped, trust can be built so that the competitive edge can be realised. 5.3 Marketing Strategy Fayseem B.V.B.A looks to establish itself competitively as a unique sporting goods & leather related products provider in the local Brussels metropolitan area and internet market through its product offerings, the scope and level of services it provides, and the expertise of its employees. Products: Sourced through established and internationally-known manufacturers in China, Pakistan and India, the products offered provide a high level of quality and value to the consumer. The depth and range of products will be extensive, separating us from others in the marketplace. Services: Connecting with the customer is a key focus for Fayseem B.V.B.A. It is our desire that customers look to us as their valued resource to obtain the equipment, apparel and accessories that meet their needs. Our internet store will provide an avenue for prompt courteous service, and deliver products at reasonable shipping rates within expected time frames. Employees: Employees of Fayseem B.V.B.A will enjoy a friendly, fair and creative work environment, which respects diversity, new ideas and hard work. Development through experience and training will be a primary focus. It is our desire that employees are long-term, ensuring an expertise that will support the customer experience. Our employees will be a competitive advantage because their technical product knowledge will be superior to that of the competition. We want customers to form a relationship with a salesperson and ask for them by name when they return for a subsequent purchase.
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5.4 Sales Strategy Fayseem B.V.B.A will approach retail sales from a sales person-customer relationship basis. All sales associates will be trained and encouraged to assist customers in a personal manner, utilising first names and asking the questions needed to provide the customers with the services they desire. The current Point-of-Sale system is already set up to collect the customer's name, address, and purchases. Gathering key customer information and seeking performance feedback on the products and services offered will assist us in the following ways:
Targeting our marketing efforts more effectively. Offering products and merchandising formats that will increase sales. Developing services that enhance the shopping experience. Training and developing sales associates in order to effectively service the customer. Increase awareness of Fayseem B.V.B.A within the retail consumer marketplace. Develop future sales opportunities that allow for continued growth of the business.
We want our customers to come back and specifically ask for a salesperson by name, because they were so satisfied with the service previously provided. Currently, the format of the retail store separates the customer from the merchandise. The customer must be assisted by a salesperson or they cannot touch or browse the merchandise. We believe this leads to walk-outs when all the available salespeople are tied up assisting other customers. Usually, these customers will leave and never return. We plan to reformat the store so that the products will be showcased via lifestyle merchandising that inspires and promotes multiple purchases. We look to create a strong visual impact, creating an invitation to touch and purchase. In order to provide the customer with the most up-to-date products on the market and a wide selection, we will attend sporting goods trade shows which showcase all of the products manufactured within the sporting goods industry. Attending shows and seminars will not only allow us to ensure our product mix is current and up-to-date, but will also provide us with fresh, new store merchandising and display ideas. To stay abreast of market and product trends, we will utilise trade publications, trade associations, and their associated websites. It is the goal of Fayseem B.V.B.A to offer selection and quality at a value to the consumer. Our pricing structure will support a 15-25% gross margin and position us competitively within the marketplace. Seasonal promotional offers, discounts for end of season, and sale "events" will encourage additional sales and multiple unit purchases. Employees of Fayseem B.V.B.A are an integral part of the shopping experience for the customer. All employees will be developed for growth and advancement, and compensated fairly with effective training that will enable them to confidently service and sell the customer. Web sales are handled electronically via the internet store Shopping Cart or via phone sales representatives taking calls on the 800 telephone number. These sales representatives need to be thoroughly trained in product offerings and have good phone communication skills. They need to be trained to follow a general sales script when dealing with customers. Having good images of products and detailed product benefits and features on the website is critical to getting the customers to commit
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to an online purchase without talking with a sales representative. A functioning site search engine that helps customers locate product also needs to be added to the internet site. 5.5.0 Sales Forecast The following table and chart give a round down on forecasted sales. We expect sales to grow 10% year on year .We have also accounted for a 1% increase year on year. We believe that this business is strong and that we can at least project to go over the sale revenue over the 2.1 million mark. Table 5.5.1: Sales Forecast
Sales Forecast FY 2013
FY 2014
FY 2015
Sales Football Goalkeeper Gloves Shin Guards Boxing Gloves Punching Pad Kick Mitts Cycling Gloves Leather Motorbike Jackets Motorbike Gloves Driving Gloves Fetish Leather Fashion Top Fetish Leather Fashion Trousers Bracelets Total Sales
€60,000 €72,000 €18,000 €108,000 €19,200 €9,000 €60,000 €210,000 €540,000 €240,000 €192,000 €192,000 €18,000 €1,738,200
€66,000 €79,200 €19,800 €118,800 €21,120 €9,900 €66,000 €231,000 €594,000 €264,000 €211,200 €211,200 €19,800 €1,912,020
€72,600 €87,120 €21,780 €130,680 €23,232 €10,890 €72,600 €254,100 €653,400 €290,400 €232,320 €232,320 €21,780 €2,103,222
Direct Cost of Sales Football Goalkeeper Gloves Shin Guards Boxing Gloves Punching Pad Kick Mitts Cycling Gloves Leather Motorbike Jackets Motorbike Gloves Driving Gloves Fetish Leather Fashion Top Fetish Leather Fashion Trousers Bracelets Subtotal Direct Cost of Sales
FY 2013 €16,800 €10,800 €6,000 €14,400 €6,000 €1,050 €4,500 €67,200 €240,000 €24,000 €57,600 €57,600 €18,000 €523,950
FY 2014 €18,480 €11,880 €6,600 €15,840 €6,600 €1,155 €4,950 €73,920 €264,000 €26,400 €63,360 €63,360 €19,800 €576,345
FY 2015 €20,328 €13,068 €7,260 €17,424 €7,260 €1,271 €5,445 €81,312 €290,400 €29,040 €69,696 €69,696 €21,780 €633,980
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FAYSEEM B.V.B.A Business Plan
Chart 5.5.2: Sales Monthly
Chart 5.5.3: Sales by Year
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5.6 Milestones The accompanying milestone table highlights our plan with specific dates. This schedule reflects our strong commitment to organization and detail. Milestone responsibility is assigned to the functional departments in the company - Sales, Marketing, HR, Operations, and President's Office. The Milestone table reflects critical dates for the acquisition and takeover schedule, systems reviews and upgrades, the website re-design and deployment, the retail store relocation, and new product identification and rollout. Table 5.6.1: Milestones Milestones Milestone Initial Business Plan Branch Registration Lease Agreement Due Diligence Accounting Systems Computers Systems Fixtures & Fittings Hire & Training Marketing Begin Operation Totals
Start Date 19/07/2012 01/09/2012 20/08/2012 01/09/2012 01/09/2012 01/09/2012 01/09/2012 01/09/2012 01/09/2012 01/09/2012
End Date 01/08/2012 15/09/2012 01/09/2012 01/09/2012 01/09/2012 01/09/2012 31/08/2012 07/09/2012 30/09/2012 01/09/2012
Budget €714 €2,000 €4,000 €500 €1,000 €1,000 €2,000 €3,000 €6,000 €27,400 €47,614
Director Faysal Baig Faysal Baig Faysal Baig Faysal Baig Faysal Baig Faysal Baig Faysal Baig Faysal Baig Faysal Baig Faysal Baig
Department Operation Operation Operation Operation Operation Operation Operation Operation Operation Operation
Chart 5.6.2: Milestones
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6.0 Management Summary The board of Directors of Fayseem Enterprises (Pakistan) has appointed Mr. Fayseem Baig to operate the branch location in Brussels. Mr. Baig is a seasoned professional with over 30 years experience in the fashion and sport industry. Mr. Baig will be joined by the following representation to help facilitate the success of Fayseem B.V.B.A:
Madiha Ilyas: Accounting Manager Usman Farooq Butt: General Manager
The business requires other position such as:
Import Manager Personal Assistant to Mr. Faysal Baig Media & Marketing Manager Sales Staff Assistant General Manager
All of these other vacant position will be filled by Belgian citizens as the business wants to ensure that it has a local feel and to guarantee that customers will be more comfortable.
6.1 Personnel Plan Table 6.1: Personnel Personnel Plan Faysal Baig – Director Samreen Baig – Director Madiha Ilyas- Accounts Manager Usman Farooq Butt - General Manager Company will recruit a Belgian Citizen for this Position (TBC)-Import Manager
FY 2013 €24,000 €24,000 €21,600 €21,600 €21,600
FY 2014 €24,000 €24,000 €21,600 €21,600 €21,600
FY 2015 €24,000 €24,000 €21,600 €21,600 €21,600
Company will recruit a Belgian Citizen for this Position (TBC) - PA
€19,200
€19,200
€19,200
Company will recruit a Belgian Citizen for this Position (TBC)- Marketing Manager
€21,600
€21,600
€21,600
Company will recruit a Belgian Citizen for this Position (TBC) - Ass. General Manager
€19,200
€19,200
€19,200
Company will recruit a Belgian Citizen for this Position (TBC)- Sales Staff
€19,200
€19,200
€19,200
Company will recruit a Belgian Citizen for this Position (TBC)- Sales Staff
€0
€19,200
€19,200
Company will recruit a Belgian Citizen for this Position (TBC)- Sales Staff
€0
€19,200
€19,200
Company will recruit a Belgian Citizen for this Position (TBC)- Sales Staff
€0
€0
€19,200
Company will recruit a Belgian Citizen for this Position (TBC)- Sales Staff
€0
€0
€19,000
Total People
9
11
13
Total Payroll
€192,000
€230,400
€268,600
Page 18
FAYSEEM B.V.B.A Business Plan
6.2 Exit Strategy This would be the worst situation for the management committee members (as well as for everyone else who is part of the organisation), but unfortunately, closure does happen. Sometimes organisations are forced to close down because their funding has been cut, and no substitute money can be found. The following steps can be taken when faced with the option of closure. 1. Step 1 - Assess your options 2. Step 2 – Explore Survival 3. Step 3 – Explore Merging 4. Step 4 – Close 6.2.1 Assess your options It is essential that the management committee takes a long clear look at the current state of the organisation - perhaps with the help of an independent advisor - and identify the options for the short and long term. This assessment should include: The impact on the client group of change (e.g. a reduction in services or transfer of activities) or closure; Financial strengths and weaknesses, including assets (e.g. premises and equipment); Internal capacity: morale, skills and knowledge of staff and volunteers; External opportunities and threats, including identification of possible merger or transfer options where organisations provide similar services; Potential for rescue: by local authorities, government or major trusts; Legal and constitutional requirements: what does the governing document allow for at closure in terms of the process to be followed and re-distribution of assets? Timetable required: for change and consolidation, merger or closure. Ultimately, it is up to the management committee to determine whether there are sufficient resources, and goodwill, to maintain core services, or whether the organisation must devise an exit strategy (i.e. plan for merger or closing down). If the decision is the latter, then is closure to be rapid, or delayed?
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FAYSEEM B.V.B.A Business Plan
6.2.2 Sticking with Survival If the decision is to try and survive, we would seriously consider the following:
Invest in realistic planning, implementation and review;
Carefully construct a fundraising strategy;
Neutralise any negative reputation, internally and externally;
Prepare service users or local people to fight cuts or closure.
We would review the organisational structure and operations by asking: What lessons are there to be learnt from real life attempts by management committees at rescuing and restoring their organisations? It is certainly very hard work; it consumes a lot of time and energy, and at times will feel frustrating and unrewarding. Other people will not necessarily appreciate your actions, and you may not be thanked - at least in the short term. But the remarkable resilience of so many people in the voluntary and community sector comes from a long experience of forging change, despite the odds. However, for an organisation in crisis to recover successfully, there are other essentials too. The process is dependant on the management committee members working together as a team. It is this cohesion that is at the heart of good governance, and which ultimately makes the difference when organisations face an uncertain fate. 6.2.3 Mergers When independent survival is not an option, we may find that we are able to continue delivery of some services and activities by merging functions with another organisation. This approach is difficult, but most frequently considered by organisations who remain focused on the impact that closure would have on their beneficiaries. When determining whether this is an option, we would discuss and consider whether:
Another organisation is already providing similar services
Another organisation is targeting similar beneficiaries
The services or activities of our group potentially complements another organisation
Other groups are active in a similar geographical area or whether we could merge with another similar group to cover a larger geographical area.
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FAYSEEM B.V.B.A Business Plan
Such consolidation of resources, services and expertise, can ensure that beneficiaries are better served as the long term future of certain activities and services becomes more secure. Such rationalisation of activities makes more effective use of existing resources and may be more favourably regarded by future funders.
6.2.4 Close If the decision is to close, we would consider:
What our governing document says about dissolving the organisation (the how, what and when of winding an organisation depends on whether it is incorporated or unincorporated);
The extent of the assets of the organisation and the options for disposing them, e.g. are there legal requirements about who should benefit from the disposed assets?
The timetable required for seeing the process through. This includes stopping activities, dismissing staff, closing premises, paying bills, terminating contracts and, if appropriate, de-registering with the charity regulator;
The cost implications, i.e. having the finances to cover the cost of the process of winding up. You also need to consider the implications for management committee members in terms of personal liability if the organisation cannot meet its financial obligations;
Who is left, or best placed, to oversee the winding up and ultimate dissolution.
Page 21
FAYSEEM B.V.B.A Business Plan
7.0 Financial Plan Fayseem B.V.B.A will invest €200,000 into the business to ensure it success. The general start-up costs include legal fees for services in regards to the purchase of the business such as the letter of intent, the asset purchase agreement, due diligence activities, and the business organisation. The accounting fees are for services regarding the business evaluation and due diligence activities. Rent and insurance for the retail facility must be prepaid before the business starts to trade. Also listed are expenses related to the creation and production of this business plan. Fayseem B.V.B.A projects that the business will generate sales from day one of its opening which means that, the cash flow is very strong and with the initial startup capital of €200,000 and cash in the bank of €28,400, the business does not foresee any cash shortage. Table 7.1: Start-up Funding Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required
€26,600 €173,400 €200,000
Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets
€146,000 €27,400 €0 €27,400 €173,400
Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities
€0 €0 €0 €0 €0
Capital Planned Investment Owner Investor Additional Investment Requirement Total Planned Investment
€0 €0 €200,000 €200,000
Loss at Start-up (Start-up Expenses) Total Capital
(€26,600) €173,400
Total Capital and Liabilities
€173,400
Total Funding
€200,000
Page 22
FAYSEEM B.V.B.A Business Plan
7.1 Break-even Analysis For our break-even analysis, we assume running costs which include payroll, rent, utilities, interest expense on the funding loan, and an estimation of other running costs. These estimations are based on real financial history data provided by the sellers of the business. Our sales forecast indicates that monthly sales are expected to be much greater than the break-even point.
Table 7.2: Break-even Analysis Break-even Analysis Monthly Revenue Break-even
â‚Ź30,871
Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost
30% â‚Ź21,692
Chart 7.2.1: Break-even Analysis
Page 23
FAYSEEM B.V.B.A Business Plan
7.3 Projected Profit and Loss The project profit and loss clearly show that the business will pick to a 40% profit for the first year and reduce to 39% in the second year and 38% in the third. Our projection also states that 38% profit is the lowest profit projection we anticipate over this amount in the coming years.
Table 7.3.1: Profit and Loss Pro Forma Profit and Loss Sales Direct Cost of Sales Other Costs of Sales Total Cost of Sales
FY 2013 €1,762,043 €523,950 €12,000 €535,950
FY 2014 €1,912,020 €576,345 €15,000 €591,345
FY 2015 €2,141,462 €633,980 €18,000 €651,980
Gross Margin Gross Margin %
€1,226,093 69.58%
€1,320,675 69.07%
€1,489,483 69.55%
Expenses Payroll Marketing/Promotion Depreciation Rent Utilities Insurance Payroll Taxes Other
€192,000 €6,000 €0 €9,600 €10,400 €1,500 €28,800 €12,000
€230,400 €8,000 €7,500 €10,560 €6,600 €1,650 €34,560 €13,200
€268,600 €8,500 €7,500 €11,616 €7,160 €1,700 €40,290 €13,800
Total Operating Expenses
€260,300
€312,470
€359,166
Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred
€965,793 €965,793 €0 €289,738
€1,008,205 €1,015,705 €0 €302,462
€1,130,317 €1,137,817 €0 €339,095
Net Profit Net Profit/Sales
€676,055 38.37%
€705,744 36.91%
€791,222 36.95%
Page 24
FAYSEEM B.V.B.A Business Plan
Chart 7.3.2: Profit Monthly
Chart 7.3.4: Profit Yearly
Page 25
FAYSEEM B.V.B.A Business Plan
Chart 7.4: Gross Margin Monthly
Chart 7.5: Gross Margin Yearly
Page 26
FAYSEEM B.V.B.A Business Plan
7.6 Projected Cash Flow Our cash flow project shows that the business will have a lot of cash reserves as we hope to have over â‚Ź2million in the cash in our third year of trading.
Chart 7.6.1: Cash
Page 27
FAYSEEM B.V.B.A Business Plan
Table 7.6.2: Cash Flow Pro Forma Cash Flow FY 2013
FY 2014
FY 2015
Cash Sales
€1,762,043
€1,912,020
€2,141,462
Subtotal Cash from Operations
€1,762,043
€1,912,020
€2,141,462
Sales Tax, VAT, HST/GST Received
€0
€0
€0
New Current Borrowing
€0
€0
€0
New Other Liabilities (interest-free)
€0
€0
€0
New Long-term Liabilities
€0
€0
€0
Sales of Other Current Assets
€0
€0
€0
Sales of Long-term Assets
€0
€0
€0
New Investment Received
€0
€0
€0
Subtotal Cash Received
€1,762,043
€1,912,020
€2,141,462
Expenditures
FY 2013
FY 2014
FY 2015
Cash Spending
€192,000
€230,400
€268,600
Bill Payments
€913,159
€1,002,815
€1,086,268
Subtotal Spent on Operations
€1,105,159
€1,233,215
€1,354,868
Sales Tax, VAT, HST/GST Paid Out
€0
€0
€0
Principal Repayment of Current Borrowing
€0
€0
€0
Other Liabilities Principal Repayment
€0
€0
€0
Long-term Liabilities Principal Repayment
€0
€0
€0
Purchase Other Current Assets
€0
€0
€0
Purchase Long-term Assets
€0
€0
€0
Dividends
€0
€0
€0
Subtotal Cash Spent
€1,105,159
€1,233,215
€1,354,868
Net Cash Flow
€656,883
€678,805
€786,594
Cash Balance
€684,283
€1,363,088
€2,149,682
Cash Received Cash from Operations
Additional Cash Received
Expenditures from Operations
Additional Cash Spent
Page 28
FAYSEEM B.V.B.A Business Plan
7.7 Projected Balance Sheet The project balance sheet show a very strong performance year on year, one of the reasons for this is due to the fact that the company has no long term liabilities in the years to come. Table 7.7.1: Balance Sheet Pro Forma Balance Sheet FY 2013
FY 2014
FY 2015
Current Assets Cash Inventory Other Current Assets Total Current Assets
€684,283 €190,700 €1,000 €875,983
€1,363,088 €209,770 €1,000 €1,573,858
€2,149,682 €230,747 €1,000 €2,381,429
Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets
€70,000 €0 €70,000 €945,983
€70,000 €7,500 €62,500 €1,636,358
€70,000 €15,000 €55,000 €2,436,429
Liabilities and Capital
FY 2013
FY 2014
FY 2015
Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities
€96,528 €0 €0 €96,528
€81,160 €0 €0 €81,160
€90,010 €0 €0 €90,010
Long-term Liabilities Total Liabilities
€0 €96,528
€0 €81,160
€0 €90,010
Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital
€200,000 (€26,600) €676,055 €849,455 €945,983
€200,000 €649,455 €705,744 €1,555,198 €1,636,358
€200,000 €1,355,198 €791,222 €2,346,420 €2,436,429
Net Worth
€849,455
€1,555,198
€2,346,420
Assets
Page 29
FAYSEEM B.V.B.A Business Plan
7.8 Business Ratios The Ratios explains a 10% growth year on year. Table 7.8.1: Ratios Ratio Analysis Sales Growth
FY 2013 0.00%
FY 2014 8.51%
FY 2015 12.00%
Industry Profile 0.00%
Percent of Total Assets Inventory Other Current Assets Total Current Assets Long-term Assets Total Assets
20.16% 0.11% 92.60% 7.40% 100.00%
12.82% 0.06% 96.18% 3.82% 100.00%
9.47% 0.04% 97.74% 2.26% 100.00%
0.00% 100.00% 100.00% 0.00% 100.00%
Current Liabilities Long-term Liabilities Total Liabilities Net Worth
10.20% 0.00% 10.20% 89.80%
4.96% 0.00% 4.96% 95.04%
3.69% 0.00% 3.69% 96.31%
0.00% 0.00% 0.00% 100.00%
Percent of Sales Sales Gross Margin Selling, General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes
100.00% 69.58% 31.22% 0.34% 54.81%
100.00% 69.07% 32.16% 0.42% 52.73%
100.00% 69.55% 32.61% 0.40% 52.78%
100.00% 0.00% 0.00% 0.00% 0.00%
Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets
9.07 7.10 10.20% 113.70% 102.09%
19.39 16.81 4.96% 64.83% 61.61%
26.46 23.89 3.69% 48.17% 46.39%
0.00 0.00 0.00% 0.00% 0.00%
Additional Ratios Net Profit Margin Return on Equity
FY 2013 38.37% 79.59%
FY 2014 36.91% 45.38%
FY 2015 36.95% 33.72%
n.a n.a
Activity Ratios Inventory Turnover Accounts Payable Turnover Payment Days Total Asset Turnover
3.26 10.46 27 1.86
2.88 12.17 33 1.17
2.88 12.17 29 0.88
n.a n.a n.a n.a
Debt Ratios Debt to Net Worth Current Liab. to Liab.
0.11 1.00
0.05 1.00
0.04 1.00
n.a n.a
Liquidity Ratios Net Working Capital Interest Coverage
€779,455 0.00
€1,492,698 0.00
€2,291,420 0.00
n.a n.a
Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout
0.54 10% 7.10 2.07 0.00
0.86 5% 16.81 1.23 0.00
1.14 4% 23.89 0.91 0.00
n.a n.a n.a n.a n.a
Page 30
Appendix
Table 7.9: Sales Forecast Sales Forecast Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sales Football Goalkeeper Gloves Shin Guards Boxing Gloves Punching Pad Kick Mitts Cycling Gloves Leather Motorbike Jackets Motorbike Gloves Driving Gloves Fetish Leather Fashion Top Fetish Leather Fashion Trousers Bracelets Total Sales
€5,000 €6,000 €1,650 €9,900 €1,760 €825 €5,500 €19,250 €48,950 €22,000 €17,600 €17,600 €1,650 €157,685
€5,000 €6,000 €1,500 €9,000 €1,600 €750 €5,000 €17,500 €45,000 €20,000 €16,000 €16,000 €1,500 €144,850
€5,000 €6,000 €1,500 €9,000 €1,600 €750 €5,000 €17,500 €45,000 €20,000 €16,000 €16,000 €1,500 €144,850
€5,000 €6,000 €1,500 €9,000 €1,600 €750 €5,000 €17,500 €45,000 €20,000 €16,000 €16,000 €1,500 €144,850
€4,250 €4,800 €1,250 €7,800 €1,350 €620 €4,250 €15,600 €38,500 €17,500 €15,500 €1,500 €900 €113,820
€4,250 €4,800 €1,250 €7,800 €1,350 €620 €4,250 €15,600 €38,500 €17,500 €15,500 €1,500 €900 €113,820
€5,000 €6,000 €1,500 €9,000 €1,600 €750 €5,000 €17,500 €45,000 €20,000 €16,000 €16,000 €1,500 €144,850
€5,000 €6,000 €1,500 €9,000 €1,600 €750 €5,000 €17,500 €45,000 €20,000 €16,000 €16,000 €1,500 €144,850
€5,000 €6,000 €1,650 €9,900 €1,760 €825 €5,500 €19,250 €48,950 €22,000 €17,600 €17,600 €1,650 €157,685
€5,000 €6,000 €1,725 €10,350 €1,840 €863 €5,750 €20,125 €51,750 €23,000 €18,400 €18,400 €1,725 €164,928
€5,000 €6,000 €1,725 €10,350 €1,840 €863 €5,750 €20,125 €51,750 €23,000 €18,400 €18,400 €1,725 €164,928
€5,000 €6,000 €1,725 €10,350 €1,840 €863 €5,750 €20,125 €51,750 €23,000 €18,400 €18,400 €1,725 €164,928
Direct Cost of Sales Football Goalkeeper Gloves Shin Guards Boxing Gloves Punching Pad Kick Mitts Cycling Gloves Leather Motorbike Jackets Motorbike Gloves Driving Gloves Fetish Leather Fashion Top Fetish Leather Fashion Trousers Bracelets Subtotal Direct Cost of Sales
Sep €1,400 €900 €500 €1,200 €500 €88 €375 €5,600 €20,000 €2,000 €4,800 €4,800 €1,500 €43,663
Oct €1,400 €900 €500 €1,200 €500 €88 €375 €5,600 €20,000 €2,000 €4,800 €4,800 €1,500 €43,663
Nov €1,400 €900 €500 €1,200 €500 €88 €375 €5,600 €20,000 €2,000 €4,800 €4,800 €1,500 €43,663
Dec €1,400 €900 €500 €1,200 €500 €88 €375 €5,600 €20,000 €2,000 €4,800 €4,800 €1,500 €43,663
Jan €1,400 €900 €500 €1,200 €500 €88 €375 €5,600 €20,000 €2,000 €4,800 €4,800 €1,500 €43,663
Feb €1,400 €900 €500 €1,200 €500 €88 €375 €5,600 €20,000 €2,000 €4,800 €4,800 €1,500 €43,663
Mar €1,400 €900 €500 €1,200 €500 €88 €375 €5,600 €20,000 €2,000 €4,800 €4,800 €1,500 €43,663
Apr €1,400 €900 €500 €1,200 €500 €88 €375 €5,600 €20,000 €2,000 €4,800 €4,800 €1,500 €43,663
May €1,400 €900 €500 €1,200 €500 €88 €375 €5,600 €20,000 €2,000 €4,800 €4,800 €1,500 €43,663
Jun €1,400 €900 €500 €1,200 €500 €88 €375 €5,600 €20,000 €2,000 €4,800 €4,800 €1,500 €43,663
Jul €1,400 €900 €500 €1,200 €500 €88 €375 €5,600 €20,000 €2,000 €4,800 €4,800 €1,500 €43,663
Aug €1,400 €900 €500 €1,200 €500 €88 €375 €5,600 €20,000 €2,000 €4,800 €4,800 €1,500 €43,663
Page 1
Appendix
Table 7.10: Personnel
Personnel Plan Faysal Baig - Director Samreen Baig - Director Madiha Ilyas- Accounts Manager Usman Farooq Butt - General Manager Company will recruit a Belgium Citizen for this Position (TBC)- Import Manager Company will recruit a Belgium Citizen for this Position (TBC) - PA Company Will recruit a Belgium Citizen for this Position (TBC)- Marketing Manager Company will recruit a Belgium Citizen for this Position (TBC) - Ass. General Manager Company will recruit a Belgium Citizen for this Position (TBC)- Sales Staff Company will recruit a Belgium Citizen for this Position (TBC)- Sales Staff Company will recruit a Belgium Citizen for this Position (TBC)- Sales Staff Company will recruit a Belgium Citizen for this Position (TBC)- Sales Staff Company will recruit a Belgium Citizen for this Position (TBC)- Sales Staff Total People Total Payroll
Sep €2,000 €2,000 €1,800 €1,800 €1,800
Oct €2,000 €2,000 €1,800 €1,800 €1,800
Nov €2,000 €2,000 €1,800 €1,800 €1,800
Dec €2,000 €2,000 €1,800 €1,800 €1,800
Jan €2,000 €2,000 €1,800 €1,800 €1,800
Feb €2,000 €2,000 €1,800 €1,800 €1,800
Mar €2,000 €2,000 €1,800 €1,800 €1,800
Apr €2,000 €2,000 €1,800 €1,800 €1,800
May €2,000 €2,000 €1,800 €1,800 €1,800
Jun €2,000 €2,000 €1,800 €1,800 €1,800
Jul €2,000 €2,000 €1,800 €1,800 €1,800
Aug €2,000 €2,000 €1,800 €1,800 €1,800
€1,600
€1,600
€1,600
€1,600
€1,600
€1,600
€1,600
€1,600
€1,600
€1,600
€1,600
€1,600
€1,800
€1,800
€1,800
€1,800
€1,800
€1,800
€1,800
€1,800
€1,800
€1,800
€1,800
€1,800
€1,600
€1,600
€1,600
€1,600
€1,600
€1,600
€1,600
€1,600
€1,600
€1,600
€1,600
€1,600
€1,600
€1,600
€1,600
€1,600
€1,600
€1,600
€1,600
€1,600
€1,600
€1,600
€1,600
€1,600
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
9
9
9
9
9
9
9
9
9
9
9
9
€16,000
€16,000
€16,000
€16,000
€16,000
€16,000
€16,000
€16,000
€16,000
€16,000
€16,000
€16,000
Page 1
Appendix
Table 7.11: Profit and Loss
Pro Forma Profit and Loss Sales Direct Cost of Sales Other Costs of Sales Total Cost of Sales
Sep €157,685 €43,663 €1,000 €44,663
Oct €144,850 €43,663 €1,000 €44,663
Nov €144,850 €43,663 €1,000 €44,663
Dec €144,850 €43,663 €1,000 €44,663
Jan €113,820 €43,663 €1,000 €44,663
Feb €113,820 €43,663 €1,000 €44,663
Mar €144,850 €43,663 €1,000 €44,663
Apr €144,850 €43,663 €1,000 €44,663
May €157,685 €43,663 €1,000 €44,663
Jun €164,928 €43,663 €1,000 €44,663
Jul €164,928 €43,663 €1,000 €44,663
Aug €164,928 €43,663 €1,000 €44,663
Gross Margin Gross Margin %
€113,023 71.68%
€100,188 69.17%
€100,188 69.17%
€100,188 69.17%
€69,158 60.76%
€69,158 60.76%
€100,188 69.17%
€100,188 69.17%
€113,023 71.68%
€120,265 72.92%
€120,265 72.92%
€120,265 72.92%
Expenses Payroll Marketing/Promotion Depreciation Rent Utilities Insurance Payroll Taxes Other
€16,000 €500 €0 €800 €400 €125 €2,400 €1,000
€16,000 €500 €0 €800 €400 €125 €2,400 €1,000
€16,000 €500 €0 €800 €400 €125 €2,400 €1,000
€16,000 €500 €0 €800 €400 €125 €2,400 €1,000
€16,000 €500 €0 €800 €400 €125 €2,400 €1,000
€16,000 €500 €0 €800 €400 €125 €2,400 €1,000
€16,000 €500 €0 €800 €400 €125 €2,400 €1,000
€16,000 €500 €0 €800 €400 €125 €2,400 €1,000
€16,000 €500 €0 €800 €400 €125 €2,400 €1,000
€16,000 €500 €0 €800 €400 €125 €2,400 €1,000
€16,000 €500 €0 €800 €400 €125 €2,400 €1,000
€16,000 €500 €0 €800 €6,000 €125 €2,400 €1,000
Total Operating Expenses
€21,225
€21,225
€21,225
€21,225
€21,225
€21,225
€21,225
€21,225
€21,225
€21,225
€21,225
€26,825
Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred
€91,798
€78,963
€78,963
€78,963
€47,933
€47,933
€78,963
€78,963
€91,798
€99,040
€99,040
€93,440
€91,798 €0 €27,539
€78,963 €0 €23,689
€78,963 €0 €23,689
€78,963 €0 €23,689
€47,933 €0 €14,380
€47,933 €0 €14,380
€78,963 €0 €23,689
€78,963 €0 €23,689
€91,798 €0 €27,539
€99,040 €0 €29,712
€99,040 €0 €29,712
€93,440 €0 €28,032
Net Profit Net Profit/Sales
€64,258 40.75%
€55,274 38.16%
€55,274 38.16%
€55,274 38.16%
€33,553 29.48%
€33,553 29.48%
€55,274 38.16%
€55,274 38.16%
€64,258 40.75%
€69,328 42.04%
€69,328 42.04%
€65,408 39.66%
15%
Page 1
Appendix
Table 7.12: Cash Flow Pro Forma Cash Flow Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
€157,685 €157,685
€144,850 €144,850
€144,850 €144,850
€144,850 €144,850
€113,820 €113,820
€113,820 €113,820
€144,850 €144,850
€144,850 €144,850
€157,685 €157,685
€164,928 €164,928
€164,928 €164,928
€164,928 €164,928
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0 €0
€0 €0
€0 €0
€0 €0
€0 €0
€0 €0
€0 €0
€0 €0
€0 €0
€0 €0
€0 €0
€0 €0
€0 €0 €0 €0 €157,685
€0 €0 €0 €0 €144,850
€0 €0 €0 €0 €144,850
€0 €0 €0 €0 €144,850
€0 €0 €0 €0 €113,820
€0 €0 €0 €0 €113,820
€0 €0 €0 €0 €144,850
€0 €0 €0 €0 €144,850
€0 €0 €0 €0 €157,685
€0 €0 €0 €0 €164,928
€0 €0 €0 €0 €164,928
€0 €0 €0 €0 €164,928
Expenditures
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations
€16,000 €4,447 €20,447
€16,000 €131,964 €147,964
€16,000 €89,914 €105,914
€16,000 €89,914 €105,914
€16,000 €87,603 €103,603
€16,000 €22,605 €38,605
€16,000 €80,915 €96,915
€16,000 €89,914 €105,914
€16,000 €88,042 €104,042
€16,000 €35,837 €51,837
€16,000 €95,937 €111,937
€16,000 €96,068 €112,068
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0 €0 €0 €20,447
€0 €0 €0 €147,964
€0 €0 €0 €105,914
€0 €0 €0 €105,914
€0 €0 €0 €103,603
€0 €0 €0 €38,605
€0 €0 €0 €96,915
€0 €0 €0 €105,914
€0 €0 €0 €104,042
€0 €0 €0 €51,837
€0 €0 €0 €111,937
€0 €0 €0 €112,068
€137,238 €164,638
(€3,114) €161,524
€38,936 €200,460
€38,936 €239,396
€10,217 €249,613
€75,215 €324,828
€47,935 €372,763
€38,936 €411,699
€53,643 €465,342
€113,091 €578,433
€52,991 €631,423
€52,860 €684,283
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 (interestfree) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received
Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance
0.00%
Page 2
Appendix Table 7.13: Balance Sheet Pro Forma Balance Sheet Assets
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Starting Balances
Current Assets Cash Inventory Other Current Assets Total Current Assets
€27,400 €75,000 €1,000 €103,400
€164,638 €130,988 €1,000 €296,625
€161,524 €147,325 €1,000 €309,849
€200,460 €163,663 €1,000 €365,122
€239,396 €180,000 €1,000 €420,396
€249,613 €136,338 €1,000 €386,950
€324,828 €152,675 €1,000 €478,503
€372,763 €169,013 €1,000 €542,775
€411,699 €185,350 €1,000 €598,049
€465,342 €141,688 €1,000 €608,030
€578,433 €158,025 €1,000 €737,458
€631,423 €174,363 €1,000 €806,786
€684,283 €190,700 €1,000 €875,983
Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets
€70,000 €0 €70,000 €173,400
€70,000 €0 €70,000 €366,625
€70,000 €0 €70,000 €379,849
€70,000 €0 €70,000 €435,122
€70,000 €0 €70,000 €490,396
€70,000 €0 €70,000 €456,950
€70,000 €0 €70,000 €548,503
€70,000 €0 €70,000 €612,775
€70,000 €0 €70,000 €668,049
€70,000 €0 €70,000 €678,030
€70,000 €0 €70,000 €807,458
€70,000 €0 €70,000 €876,786
€70,000 €0 €70,000 €945,983
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities
€0 €0 €0 €0
€128,967 €0 €0 €128,967
€86,917 €0 €0 €86,917
€86,917 €0 €0 €86,917
€86,917 €0 €0 €86,917
€19,918 €0 €0 €19,918
€77,918 €0 €0 €77,918
€86,917 €0 €0 €86,917
€86,917 €0 €0 €86,917
€32,639 €0 €0 €32,639
€92,739 €0 €0 €92,739
€92,739 €0 €0 €92,739
€96,528 €0 €0 €96,528
Long-term Liabilities Total Liabilities
€0 €0
€0 €128,967
€0 €86,917
€0 €86,917
€0 €86,917
€0 €19,918
€0 €77,918
€0 €86,917
€0 €86,917
€0 €32,639
€0 €92,739
€0 €92,739
€0 €96,528
Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital
€200,000 (€26,600) €0 €173,400 €173,400
€200,000 (€26,600) €64,258 €237,658 €366,625
€200,000 (€26,600) €119,532 €292,932 €379,849
€200,000 (€26,600) €174,806 €348,206 €435,122
€200,000 (€26,600) €230,080 €403,480 €490,396
€200,000 (€26,600) €263,632 €437,032 €456,950
€200,000 (€26,600) €297,185 €470,585 €548,503
€200,000 (€26,600) €352,459 €525,859 €612,775
€200,000 (€26,600) €407,733 €581,133 €668,049
€200,000 (€26,600) €471,991 €645,391 €678,030
€200,000 (€26,600) €541,319 €714,719 €807,458
€200,000 (€26,600) €610,647 €784,047 €876,786
€200,000 (€26,600) €676,055 €849,455 €945,983
Net Worth
€173,400
€237,658
€292,932
€348,206
€403,480
€437,032
€470,585
€525,859
€581,133
€645,391
€714,719
€784,047
€849,455