Loan business

PROJECT FEASIBILITY STUDY AND EVALUATION

Project Feasibility Study and Evaluation

(1203302)

Present to

Aj. Chaiyawat Thongintr

Create by Sky Light Company

Semester 2/2555 Mae Fah Luang University

Preface
This Project is a part of 1203302 Project Feasibility Study and Evaluation Course in the second semester of 2012. In this project is studying the feasibility of dessert business in Bangkok, which is include generally of loans business, management, competition analysis and marketing feasibility, the technical process in loans business, and the financial feasibility of this business This project makes everyone who interested to get knowledge and information about loans business before make decision to investment, including preoperational process and operation process of loans business, for the benefit to investment and profit of doing this business. We expect that our project will provide benefit more and more interested person, moreover, if they are any error in this project or whatever, I ground made an apology at this opportunity.

Suchada Chupakdee

Table of content

Title

Page

Exclusive summary
Chapter 1: Introduction 1.1. Background and Significance of the Project 1.2 Objectives 1.3 Program Evaluation and Review Technique & Critical Path Method Chapter 2: Industry Profile 2.1 Sky Light Industry profile (loans business) 2.2 The Situation of Loans Business 2.3 Service of Loans Business 2. 4 Sky Light cash loans business 2. 5 Sky Light cash loans business mission 2.6 Bank Loans 2.7 Advantages & Disadvantages of Small Business Lending Companies 2. 8 Advantage: Relaxed Credit Requirements 2. 9 Advantage: Flexible Loan Terms 2.10 Disadvantage: Higher Interest Rates Chapter 3: Market Feasibility Study 3.1 General Environment Analysis 3.2 Competition Analysis (3C Analysis)

1-2 2 3

6-7 7-8 8 8 9 9 9 10 10 10

12 14-16

Title 3.3 STP analysis 3.4 Sale Forecast/ Profit Forecast 3.5 Conclusion Chapter 4: Investment Cost 4.1 Landscape 4.2 Location 4.3 Investment Cost 4.4 Depreciation Chapter 5: Production and Operations Analysis 5.1 Production Characteristics 5.2 Production / service process 5.3 Operating Cost Chapter 6: Administration Analysis 6.1 Employee in company 6.2 Employee Salary 6.3 Description Chapter 7: Financial Analysis 7.1Financial Analysis 7.2 Income 7.3 Balance Sheet 7.4 Common Size Statement

Page 18 20-40 41

43-46 47-49 50-51 52-58

60 61 63

64 65-69 70-74

76-77 78 -82 83-87 88-89

Title Chapter 8: Risk Management 8.1 Strategies to prevent bad debt 8.2 Income Statement (Decrease 5%) 8.3 Income Statement (Decrease 10%) 8.4Income Statement (Decrease 15%) 8.5 Cost Increase 5% 8.6 Cost Increase 10% 8.7 Cost Increase 15% 8.8 Common on liquidity Chapter 9: Summary124

Page

91

92-96 97-101 102-106 107-111 112-115 116-121 122

Exclusive summary
This Project is a part of 1203302 Project Feasibility Study and Evaluation Course in the second semester of 2012. In this project is studying the feasibility of Sky Light Company in Anu-sa-wa-ri Bangkhen, Bangkok. Bangkok is the capital city of Thailand. The most famous country in Thailand and over fourteen million people (22.2 percent) live in Bangkok. The city grew rapidly during the 1960s through the 1980s and now exerts a significant impact amongst Thailands politics, economics, education, building, media and modern society and so on. Many corporations are locating their regional headquarters in Bangkok. So, the city is now a major regional force in finance and business. It is an international hub for transport and health care and is emerging as a regional centre for the arts, fashion, entertainment and Business Company. In our companies are beginning of investment; the company is investment in small area. We will get profit back in third year. And will more a lot of money. But the loans business has a pro and con because in the advantage when you invest to business, you can get a lot of profit but in the disadvantage you has more risk of business. If you have best management of business, you has no risk to this business. So, the loans business was a great idea to invest in business

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A

Chapter 1

N T R O D U C T I O N

1. Background and Significance of the Project

1.1 History of Loans Business The history of loan is an interesting in Christian groups. Whose groups had strict rules about who could loan money and couldnt. In the history of loan money to people was compound interest. It is what makes a low interest loan for 600 Baht, but the debt payment duration is many years, the amounts that end up paying to the person the length of money will be far over 600 Baht because the interest adds up. Their payment period is so short and has to make all of their money up front. And this is also why mortgages can have such as low interest rates and their duration is very long.1 1.2 Background Bangkok is the capital city of Thailand. The most famous country in Thailand and over fourteen million people (22.2 percent) live in Bangkok. The city grew rapidly during the 1960s through the 1980s and now exerts a significant impact amongst Thailands politics, economics, education, building, media and modern society and so on. Many corporations are locating their regional headquarters in Bangkok. The city is now a major regional force in finance and business. It is an international hub for transport and health care and is emerging as a regional centre for the arts, fashion, entertainment and Business Company. Bangkok is light growth little urban planning and regulation. This place is despite an extensive expressway network together with an over reliance on private cars and crippling traffic congestion.2 Sky Light Cash loan business locates at Bang Khen of Bangkok, Thailand. Bang Khen is one of the 50 districts of Bangkok. Bang Khen received Moo 8 to 10 of Chorakhe Bua sub-district from Lat Phrao district. It near with Ying Charoen Market, Saphan Mai Market and also nearby shopping centre such as Big C, Central Plaza Ramindra, Foodland Ram Inthra branch, University, School and Anusawari.

http://alltypesoflighting.com/2011/04/the-history-of-loans/ http://www.bangkoktourist.com/theme_6/index.asp?lang=en

Our key capability which allows us to serve a broad cross section of industries, each with their own focus including infrastructure, light and heavy, agriculture and service industries. We offer a comprehensive relationship approach will base on in depth industry knowledge delivering a range of both short term and long term debt and investment solutions to meet your unique financing requirements. Whether you are a current lender, we can add value to your venture with our expertise, small customer base and proven capability. We determine, our lending business can success orchestrate syndicate loans for corporate customers in both Thai baht and foreign currency. To support our large customer base our domestic branch network reaches into every town and province in Thailand. Our lending business understands the needs of a growing business. We provide a range of loans with built in flexibility so that you can find a tailored solution that meets your business financial requirements. We will offer competitive interest rates and flexible repayment structure that can best way to support the development of your business. However your financing need should be, our lending business has a low cost answer that will suit your business. 1.2 Objectives Sky Light objective is to provide goods and services, dedicate to becoming our customers number one perfect loan business. Sky Light crash public loan company limited, we always strive to develop our organization and offer financial product initiatives excellent service. We construct towards to the excellence service. Our business provides all of our customers by loan. Sky Light offer our customer with create their path to successful. About financial innovation which provide advisory services and knowledge that goes beyond financial services to all customer segments. This innovation is intended to offer enhanced convenience to individual customers towards a leisurely life. The purpose of our business guaranteed loan program to improve and develop finance business or industry and economic of environmental. For Agriculture loan, this program provides to assist farmers in marketing their commodity crops.

1.3 Program Evaluation and Review Technique & Critical Path Method PERT/CPM

Conclusion
In conclusion, the reason we choose this topic because loans business is easy to get the money to start the business. Therefore, many of people come to borrow the money from loans business. But to get the money from loans business we need to show our business background, regular installment on time, having a plan to open the business and meet the qualification that the company assigns. And the benefit of this project can be expert to calculate profits, expenses and find the way to get maximize profits. We invite to get to know us and to work with us with our resource for all of our employee benefit needs. And to know feasibility of the project study and analyze with real situation. So, loans business is a great introduce for people to start their business so that people dont need to worry for their future starting own business.

Chapter 2

N D U S T R Y

P R O F I L E
5

2 Nature of Industry
2.1 Sky Light Industry profile (loans business) The first business loans possibly date back to ancient Greece. One of the most important services offered by Greek bankers was the lending of money to finance the carriage of freight by ships. They also lent money for mining, and construction of public buildings. Later, during the middle ages, the Jews fled for their lives to Italy, where they encountered grain farmers looking for money to help support their businesses. The Christians, who were the current settlers of Italy, were forbidden the sin of usury, or charging a fee for the use of money. Today, the word usury is used to describe placing unreasonable interest rates on borrowed money. Therefore, this opened the door for the newcomers, the Jews (who were merchants), to lend money to farmers. The term "merchant bank" derives from this origin and was one of the first banks that offered "business" loans to the grain farmer. 3 Nowadays we started open loans business name is SKY LIGHT cash loans. Our business gives your direct loans: it is often the best option for getting the loan you want. Direct loans are convenient, flexible and simple. A Direct loan is a loan by a lender to a customer without the use of a third party. This type of loan enables the lender to have greater discretion in the distribution of loans. Direct loans give you the simplicity of having one contact for concerns with your financial assistance. You are able to have access to your direct loan information on-line 24 hours a day, 7 days a week. You are given the flexibility to choose your repayment options and are able to change your schedule as your needs change.4 Sky Light Direct PLUS loan is a direct loan designed for parents without an adverse financial history who wish to borrow money for their dependent student. In order for a student to be dependent he or she may not be 24 years or older, a graduate or professional

3 4

http://ezinearticles.com/?The-History-of-Business-Loans&id=77330 http://ezinearticles.com/?expert=John_Williams
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student, someone with legal dependents, an orphan or a ward of the court. Parents of independent students are not eligible to apply for this type of loan.5 Personal clash advantage if youre short on cash and need payday loans we offer several check advance services to fit your busy needs. Furthermore, all we require are you having an active checking account to receive your personal cash loan instantly. Applying Online for a Cash Advance Loan from Easy Advance is always easy. Please feel free to fill out our short Cash Advance form to begin your payday loan application. Upon completion a payday loans representative will contact you and issue you the cash advance the same day.6 2.2 The Situation of Loans Business Loans situation is able to offer customers same day loans. Loans situation can approve individuals needing a loan regardless of their financial history and the loan can be in their account after approval. Loan providers will work a credit rating check on individuals who are applying to receive an installment loan and the results of this check will often determine whether or not an individual is reasonable to receive loans. Loans situation understands that everyone deserves a second chance.7 While other loan providers that offer same day loans harm their customers with high interest rates and lump sum repayment requirements, Situation Loans is different. Lower interest rates wont be found anywhere else on the Internet and the repayment requirements are flexible. Situation Loans understands that lump sum repayments can be stressful, which is why the installment loan can be repaid in small, monthly payments over a set period of time. Most of people depend on installment loans to purchase items they otherwise would not have been able to afford. It is possible to get this loan on the same day as it is requested, at a rate that wont destruction a budget.8

http://EzineArticles.com/82483 http://directloans.blogspot.com/
http://online.wsj.com/article/PR-CO-20121214-907493.html http://online.wsj.com/article/PR-CO-20121214-907493.html 7

Loans situation is also an online installment loans provider that is able to offer loans for any and all situations for patron. Unlike other loan providers, Situation Loans is dedicated to providing their customers with loans that have a low interest rate, and that can be in their bank account as fast as possible. Connecting with trusted loan providers, Situation Loans is willing to help anyone who requires an installment loan. For more information, see following link.9 2.3 Service of Loans Business Sky Light cash loans services have for all of our customers who come to loan money with Sky Light. We have some juice, coffee, magazine, books, and daily newspaper to provide for all of our customers. When your are waiting for contract with our staff, we have comfortable sit for your and very clean toilet for you. Our staffs have smile face, good contract with good voice on face to face with customers or on phone. Sky light is the best listener your problems and help your about your money. (In Sky Light business idea)

2. 4 Sky Light cash loans business vision Sky Light vision is one team with employees promoting our business and service to become our customers.10 Our vision has good management with efficiency and good authority. And focus on all of organization to achieve the goals by having preparation to perform duty for available with customers. 11

http://online.wsj.com/article/PR-CO-20121214-907493.html

10

http://www.thaiinthailand.com/bank/bank-of-ayudhya.html http://www.gsb.or.th/about/mission-en.php
8

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2. 5 Sky Light cash loans business mission Sky light mission needs many costumers to provide money for all of investor to develop in their life. And we want to be organization that promotes the grassroots economy and to be association with social responsibility.12 2.6 Bank Loans Traditionally, banks have been reluctant to provide long-term financing to a small business, particularly in that business is relatively newer. As such, forms of business lending from banks commonly take the form of lines of credit or short-term loans designed for a specific purchase--a piece of machinery. The eligibility of bank loans is commonly predicated on the personal guarantee of the borrower. The idea is that if the borrower is sufficiently invested in the business, he will be less likely to let it fail. While this is a burden that must be considered, in many cases it is also a requirement of this type of business lending. 2.7 Advantages & Disadvantages of Small Business Lending Companies As a small-business owner, you should understand the financing options available to you to help grow your company. Small business lending companies, or SBLCs, are authorized by the U.S. Small Business Administration to provide loans and other debt instruments to small business concerns. Financing is provided for purchasing assets including owner-occupied buildings, working capital and small projects with a partial guarantee from the administration that the loan will be paid.13

12 13

http://www.gsb.or.th/about/mission-en.php :http://smallbusiness.chron.com/advantages-disadvantages-small-business-lending-

companies-22866.html
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2. 8 Advantage: Relaxed Credit Requirements Many new small business owners have difficulty accessing capital through traditional banks to start or grow their firms. Small business lending companies target these owners to provide financing even though they have challenged credit. There will be a premium charged through interest rates and other fees for access to capital but being granted necessary funding is most important to owners in a financial bind.14 2. 9 Advantage: Flexible Loan Terms Loans that can be repaid over a long period of time help reduce the monthly payment required for payback. SBLCs have the flexibility to provide terms according to their schedule since they are not banks and unregulated by federal or state governments. Additionally, they tend to offer smaller loans with no collateral required by the borrower.15 2.10 Disadvantage: Higher Interest Rates Given the credit risk of their customer base, SBLCs tend to charge higher interest rates than traditional banks. They typically charge the "Wall Street Journal" prime rate plus a premium dependent on the amount of funding the business owner takes out. As of 2011, this premium could be from 2.25 percent to over 6 percent. Traditional findings highest average rates are slightly higher than 8 percent, while SBLC interest can be as high as nearly 12 percent.16

14

http://smallbusiness.chron.com/advantages-disadvantages-small-business-lending-

companies-22866.html
15

:http://smallbusiness.chron.com/advantages-disadvantages-small-business-lending-

companies-22866.html
16

http://smallbusiness.chron.com/advantages-disadvantages-small-business-lending-

companies-22866.html
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Chapter 3

MARKET FEASIBILITY STUDY

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3. Market Analysis
3.1 General Environment Analysis According to the market of loan business, now a day the people have low income per month when their people need to loan from bank or other financial institution to buy something. People have low income so people will have divided money to pay in other such as water bill, electric bill and home rent bill it difficult to save money to buy equipment. The most people are population in Bangkok. My company is the way for people to loan for purchase equipment. 17

Figure 3.1: Environment Factors 3.1.1) Political/Legal Factors The government of Thailand has policy return tax for first car. It make those with low income would have car need to loan. The government of Thailand has policy increase in low income 150 per day. That will increase the labor cost to manufacturers, it means the higher cost of product and increase the price of product. It the cause to make people would to loan increase.

17

http://www.marketingteacher.com and http:// www.tutor 2u.net,

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3.1.2) Economic Factors Now, in Thailand have relationship with ASEN and other countries, so economics of Thailand has develop over time, we can create new market. If the country open AEC we need to prepare for the foreigner to loan money. Level income and distribution level of income of employees. For foreigner who would like to loan money they should work in Thailand and live in Thailand and have salary above 15,000 . The economic have an effect Sky Light cash directly because we business involved the growth directly. When the policy of government or inflation on cash it may affect on our business. 3.1.3) Socio-cultural Factors Today, people attend to loan, so the company has the opportunity to develop useful money for loan such as low interest rate, long time in pay by installments, high loan and low base salary. It attracts to the consumers of 20 years old up such as teacher, manager, staffs, etc.

When AEC coming our company may have the foreginer in our business, it have the different cultures and languages. Our business may have the infulence in english to contract with our customers. We need to explain the customers understand our business.
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3.1.4) Technological Factors We have high technology can register online. In online it very comfortable for the customer. We have call center to service customer. We have two or more staffs for the customer service and easy to contract and give any advice for the customer, who would like to loan or interested. We have web site about us such as interest rate, loan rate, etc. If the customer interested in our company please welcome to visit in our website page or contract directly in our company. Now a day, the communication technology has been improved to be strong, such as 3G and Wi-Fi. All of this can be used to reduce operation cost and convenience for communicating with suppliers and buyers. We have free Wi-Fi for the customer who waiting for the process and contracting.

3.2 Competition Analysis (3C Analysis)

3.2.1 Competitor Analysis The sky light company focuses on market area in Bangkok to be as the following; age, education, working, and lived in the area. It can show the market share of the following segment into these separate parts so almost of our competitors are substitute competitors. We can analyze the main competitor into the following which are Direct competitors

1) AEON company is a direct competitor because they have much service about loans to customer. So, my company like feature is different.

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2) City bank company is a direct competitor because they use credit card to customer but my company not use credit card.

3) First Choice company is co with Krung bank. They liked City bank and AEON. So, my company to feature is different from all company

Indirect competitors

1) Krungsri Auto is an indirect company

because they use the assets to guarantee but my company not uses assets to loans.

15

2) K-bang is an indirect company because they use the assets to loans such as car, property.

3) SCB bank is liked Krungsir-auto and Kbank because they use strategy is use

aproperty and cars.

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3.2.2 Customer Analysis Who are the customers? Age 25 > 45 year old both male and female. Officers, has salary more than > 15,000. Or business man.

What?

Different of loans Make convenience to the customer.

Why the customers want to use this company and come to this company?

To buy a house. Car installments. High cost.

When the customers to use your company?

Not enough money. Need Quick Cash.

Where the customer can contract?

My office

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3.3 STP Analysis

3.3.1 Segment Segmenting is the breaking down a diverse market into homogeneous groups. People come for loan money is always having older than 20years and the main thing is who have regular work. In this part our company uses the demographic information of customer. The main demographic information our company uses are age, income, social status, education, occupation, family size, geographic conation. The fundamental philosophy behind customer segmentation is that customers will be more inclines to take action when doing so addresses their specific needs.18 When they comes loan money from our company, the company observes their income first and how many they can apply for loan. Some people want to loan because they need to use money for their society or life style. Education is the one thing need to use money. Student who not rich but, they are very intelligent and they want to go study for abroad, their parents come to the loan for get the money.Bases for segmentation in business the important things are Location, Company type and Behavioral characteristics. The location is the easy to see and make customer first impression. The company size is the one make customer has believed in our company and the company will give the 1st customer for low rate (low percentage) of loan.19

18

http://agorsiloku-marketing.blogspot.com/2006/06/segmentation-targeting-positioning-

stp.html
19

http://www.tutor2u.net/business/marketing/segmentation_bases_demographic.asp

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3.3.2 Target Market Targeting is the choosing a specific segment for our campaign. Sky light expected growth of market share 0.2 percent per year. We will make the market share growth by give promotion to our customers such as reduce of interest rate and some gift to who loan our money. Light Sky Cash has target on the own business, small business and everyone who want to loan and they can make easily to get the money. Some season we will give the gift voucher to our consumer.20 The population use sky light services are 1,450 peoples per year. We set up bank account at the bank that deals with our size and type of small business. And manage the account effectively and bounced checks. Our see the customers problems and make them understand our business rule and providing money. Relationships can be beneficial when it comes time to apply for a small business loan or large credit line. 21 Four ways to identify target markets use these four category areas as you collect information to identify and define your target market: 1) Geographic: The location, size of the area, density, and climate zone of our customers 2) Demographics: The age, gender, income, family composition and size, occupation, and education of our customers. 3) Psychographics: The general personality, behavior, life-style, rate of use, repetition of need, benefits sought, and loyalty characteristics of our customers. 4) Behaviors: The needs they seek to fulfill the level of knowledge, information source, attitude and response to our company. 22

20

http://agorsilokumarketing.blogspot.com/2006/06/segmentation-targeting-positioning-

stp.html
21

http://sbinformation.about.com/od/creditloans/a/loanrelations.htmby http://articles.bplans.com/business/target-marketing/94
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3.4 Sales Forecast / Profit Estimation

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Conclusion
STP is also known as strategic marketing. We need to find a correct segment in which to market our company, identifying the proper target market and positioning the company to create maximum profit. The important part of STP is determining exactly what benefit your company gets and who will be most benefit from using Loan Company. Why all business is doing STP process? Because you are creating marketing plan designed specifically for the consumers who will be our loyalty customer. The STP process allows us to identify the correct segment to market for our company. The 4Ps are Product, Price, Place and Promotion makes up the marketing mix. Each of these elements should be designed to meet customer needs and requirements, use the marketing mix to maximize profits. There are a few marketing expenses that are absolutely necessary for the success of any business and must be considered when putting together a marketing budget for a big business.

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Chapter 4

I NVESTMENT COST
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Pre Operating Cost

Cost subject before start the project

4.1 Landscape Anu-sa-wa-ri Bangkhen, Bangkok

Anu-sa-wa-ri Bangkhen, Bangkok is one excellent market attention because this

location top of population in Bangkok. Conditions of the Bargain Property Type: Floor Level: Price: Condition: Shop house 5 6,200,000 Thai Baht N.A.

Information from K.Maxihome Call: +66 823376883

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4.1.1 Certificate Certificate cost of our company 1. A company [+VAT] 23 - Corporate name reservation service. - In preparing the registration form. - Service for taxpayer identification number. - Support for VAT. - Consulting services to the registrant. - Facilities for the document. 2. A limited Partnership [+VAT] - Corporate name reservation service. - In preparing the registration form. - The service was registered at our store. - Service for taxpayer identification number. - Support for VAT. - Consulting services to the registrant. - Facilities for the document. 3. Commercial registration 4. Trademark registration 5. Copyright registration - Activity that is related to works that. 6. Patent Registration 7. Conducting transportation Businesses Total (per year) 7,500 1,500 38,500 2,500 2,500 5,000 7,500 12,000

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http://www.p2accounting.com/%E0%B8%88%E0%B8%94%E0%B8%97%E0%B8%B0%E0%B9%80%E0%

B8%9A%E0%B8%B5%E0%B8%A2%E0%B8%99.html?gclid=CMPKzaWhga0CFUZ66wodwiCpSg

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4.1.2. Design office cost of Sky of light

About office floor 5 levels Prices start at 200,000 .per one office. (The price includes installation.)24 - For furniture and electrical systems for a base. - All internal display. ***Does not include devices such as stereo equipment, electric charge. The office about 200,000

24

http://www.spfurniture.com/index.php?lay=show&ac=article&Id=538884722&Ntype=5
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4.1.3 Decorate the shop cost Marketing Promotion cost is the public such as advertising, sales tax calculation, 3%

The decoration and other label cost.

The label Taxes label The furniture for customer The paint office All the tiles and wages The lamp The glass doors The ventilation File cabinets Cabinets Counter Total

9,000 10,000 25,950 50,000 150,000 3,000 10,000 5,000 17,160 1,690 20,000 301,800

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4.2 Location
Sky Light Company In Bang Khen, Thailand

Our company located at Bang Khen in Bangkok is one excellent market attention because live in center so the popular to shopping. As Bang Khen with more extensive boundary and together with a community, commercial and industry growth in local. An economic prosperity and utilities it makes has population dense. But nowadays, Thailand has problem side of economy as demographic increasing, high costs, so our company has been built to accommodate a population with financial problems. Our office is on there the lease term is 76/116 T. Bang Khen, A. Bang Khen, Bangkok, 10220.

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Location map of sky light company::

Layout and Facility

Floor1

48

Floor2

Floor3

Floor4

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4.3 Investment Cost

4.3.1 Equipments& Tools Table 4.3.1.1 Office Equipment No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Description Computer Office table Meeting table So far Table Office Printer Person Printer Chair Telephone Fax File Cabinet Document File Cabinet Counter TV CCTV Total No. Product 22 18 1 3 3 1 3 2 12 1 4 2 1 1 4 10 Price/unit 12,990 2,680 14,850 8,650 690 35,000 2,500 600 480 3,290 4,290 960 1,690 20,000 16,900 9,900 Total 285,780 48,240 14,850 25,950 2,070 35,000 7,500 1,200 5,760 3,290 17,160 1,920 1,690 20,000 67,900 99,000 637,310 Depreciation period/year 3 5 5 5 5 3 3 5 3 3 5 5 5 5 5 5

Table 4.3.1.2 Bathroom Equipment No. 1 2 3 4 Description Hand soap Slipper Tissues Napkin Total No. Product 5 5 5 10 Price/unit 43 49 156 27 Total 215 245 780 270 1510 Depreciation period/year 1 1 1 1

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Table 4.3.1.3 Kitchen Equipment No. 1 2 3 4 5 6 7 Description Microwave Refrigerator Table set water dispenser Kitchen sink cabinet Insolated container of hot water Cup of coffee set Total No. Product 1 1 1 1 1 1 2 Price/unit 2,190 16,450 3,200 2,790 5,000 900 480 Total 2,190 16,450 3,200 2,790 5,000 900 960 31,490 Depreciation period/year 3 3 5 3 5 3 5

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4.4 Depreciation

Investment

Description Building Furniture A Furniture B computer Machine A Machine B Total

No. Product

Price/unit 6200000 3,690 62,130 12,990 59,910 26,800 165,520

Total 6200000 3,690 140,320 285,780 82,829 169,608 682,227

Depreciation period/year 20 3 5 3 3 5

Annual dep. 310,000 1,230 28,064 95,260 27,610 33,922 186,085

Monthly dep. 25833 103 2339 7938 2301 2827 15507

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Depreciation

Year 1 Investment Building Furniture A Furniture B computer Machine A Machine B Total Amount 6200000 3690 140320 285780 82829 169608 Jan 25833 103 2,339 7,938 2,301 2,827 Feb 25833 103 2339 7938 2301 2827 Mar 25833 103 2339 7938 2301 2827 Apr 25833 103 2339 7938 2301 2827 41,340 May 25833 103 2339 7938 2301 2827 Jun 25833 103 2339 7938 2301 2827 Jul 25833 103 2339 7938 2301 2827 41,340 Aug 25833 103 2339 7938 2301 2827 41,340 Sep 25833 103 2339 7938 2301 2827 41,340 Oct 25833 103 2339 7938 2301 2827 41,340 Nov 25833 103 2339 7938 2301 2827 41,340 Dec 25833 103 2339 7938 2301 2827 41,340 Total 310,000 1,230 28,064 95,260 27,610 33,922 496,085 Balance 5,890,000 2,460 112,256 190,520 55,219 135,687 6,386,142

6,882,227 41,340 41,340 41,340

41,340 41,340

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Depreciation

Year 2

Investment

Amount

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Total

Balance

Building

5,890,000

25833

25833

25833

25833

25833

25833

25833

25833

25833

25833

25833

25833

310,000

5,580,000

Furniture A

2,460

103

103

103

103

103

103

103

103

103

103

103

103

1,230

1,230

Furniture B

112,256

2,339

2339

2339

2339

2339

2339

2339

2339

2339

2339

2339

2339

28,064

84,192

computer

190,520

7,938

7938

7938

7938

7938

7938

7938

7938

7938

7938

7938

7938

95,260

95,260

Machine A

55,219

2,301

2301

2301

2301

2301

2301

2301

2301

2301

2301

2301

2301

27,610

27,610

Machine B

135,687

2,827

2827

2827

2827

2827

2827

2827

2827

2827

2827

2827

2827

33,922

101,765

Total

6,386,142 41,340

41,340

41,340

41,340

41,340

41,340 41,340 41,340 41,340 41,340 41,340

41,340

496,085

5,890,057

54

Depreciation

Year 3

Investment

Amount
5,580,000

Jan
25833

Feb
25833

Mar
25833

Apr
25833

May
25833

Jun
25833

Jul
25833

Aug
25833

Sep
25833

Oct
25833

Nov
25833

Dec
25833

Total
310,000

Balance
5,270,000

Building

Furniture A

1,230

103

103

103

103

103

103

103

103

103

103

103

103

1,230

Furniture B

84,192

2,339

2339

2339

2339

2339

2339

2339

2339

2339

2339

2339

2339

28,064

56,128

computer

95,260

7,938

7938

7938

7938

7938

7938

7938

7938

7938

7938

7938

7938

95,260

Machine A

27,610

2,301

2301

2301

2301

2301

2301

2301

2301

2301

2301

2301

2301

27,610

Machine B

101,765

2,827

2827

2827

2827

2827

2827

2827

2827

2827

2827

2827

2827

33,922

67,843

Total

5,890,057

41,340

41,340

41,340

41,340

41,340

41,340

41,340

41,340

41,340

41,340

41,340

41,340

496,085

5,393,971

55

Depreciation

Year 4

Investment

Amount

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Total

Balance

Building

5,270,000

25833

25833

25833

25833

25833

25833

25833

25833

25833

25833

25833

25833

310,000

4,960,000

Furniture A

Furniture B

56,128

2,339

2339

2339

2339

2339

2339

2339

2339

2339

2339

2339

2339

28,064

28,064

computer

Machine A

Machine B

67,843

2,827

2827

2827

2827

2827

2827

2827

2827

2827

2827

2827

2827

33,922

33,922

Total

5,393,971

41,340

41,340

41,340

41,340

41,340

41,340

41,340

41,340

41,340

41,340

41,340

41,340

496,085

4,897,886

56

Depreciation Year 5 Investment Building Furniture A Furniture B computer Machine A Machine B Amount
4,960,000 28,064 33,922

Jan
25833 2,339 2,827

Feb
25833 2339 2827

Mar
25833 2339 2827

Apr
25833 2339 2827

May
25833 2339 2827

Jun
25833 2339 2827

Jul
25833 2339 2827

Aug
25833 2339 2827

Sep
25833 2339 2827

Oct
25833 2339 2827

Nov
25833 2339 2827

Dec
25833 2339 2827

Total
310,000 28,064 33,922

Balance
4,650,000 -

Total

5,021,986

41,340

41,340

41,340

41,340

41,340

41,340

41,340

41,340

41,340

41,340

41,340

41,340

496,085

4,525,900

57

note: Furniture A Furniture B water dispenser Office table So far Table computer Machine A Computer Office Printer Person Printer Machine B TV CCTV Insolated container of hot water Meeting table Chair File Cabinet Microwave Telephone Fax Refrigerator Cabinet Counter

58

Chapter 5

PRODUCTION AND OPERATIONS ANALYSIS

59

5.1 Product Characteristics

The characteristics of Sky light have many raw materials, process method, convenience, safety, fair for all of our customers with Sky Light rules. The characteristics of Sky Light our customers must have the strong reason or mortgage assets. There reasons are Housing Loans, Personal Loan, Car Purchase loan, Education loan and so on. Sky Light have loan limit we offers our customers the amount of Baht it up to for purchasing or investment whatever and whenever their wish. The interest rate of loan is fluctuating and it is always based on our rate plus the application margin of the product or bank tariffs guide. The duration of repayment is 5 year period of repayment will offer. The insurance policy Sky Light auto insurance premiums for our customers that they want to loan money for their insurance. Sky Light auto loan is satisfying our customers needs.25

25

https://www.hellenicbank.com/loans/
60

5.2 Production / service process

Service Process When the customers come to our company, the staff will say greeting with good welcome, than the customer will ask everything in public relation. For our customer who waiting for their turn, our company prepared the snack and coffee or water for our consumer but service by self. We have many books such as magazine, comedy book and Television for customer watch. Public relation will discuss customer problem and public relation will decide the allowing of money (example: small amount, have mortgage, etc.) but some large amount money the public relation will sent the problem to manager and wait the decision of

manager. Sometime manager will direct discuss with our customer. If the first process finish, our customer will go to second floor that are financial or accounting part. And they will take the money at second floor.

Good is vision. Great is the capital to achieve it. Sky Light gives your business the credit and convenience it deserves to make your vision a reality and success. Business Term Loan Generous limits For short-term and long-term needs For almost any business need expansion Figure 5.2.1Loan Application Approve

Figure 5.2.2Service

Figure 5.2.3company

61

5.3 Operating Cost

Our company is a loan business company. So, everyone can borrow the money how much they want from our company. If they want the money from our company, they must have other materials to exchange such as cars, lands, etc. We use a lot of other materials to conduct our company. For example, safe, computers, tables, chairs, printers and other necessary we should use. Safe and computer are essential for our company because we need to save money in safe and to keep customers information in the computers. In our company, we divided into three mains salary for staff and other workers. For the first, we manage the manager to get the highest salary. For the second, we focus on the staff to get the middle salary. For the last step, security and other workers can get monthly cost or daily cost. We maintenance our company by taking the security to take care our customers for their safety. And also take security at night for our company. When the customers borrow a lot of money from our company, we deliver money for their need.

62

Chapter 6

ADMINISTRATION ANALYSIS
63

Organization (Administration analysis) Organization Chart

CEO
Marketing Finance Operator HRM

IT
6.1 Employees in Company
Sky Light has totals twenty-two employees in company. The characteristic of each position is blow: 1. CEO Oversee all departments and make decision to Major corporate affairs Characteristic26 Male/Female Service mind/sale person

2. Administration Cost

26

http://www.samiennaree.com/index.php?lite=article&qid=404822

64

6.2 Employee salary

Wage rate for our organization 1. Managing position 2. Employee in the organization - Accounting department a. Accountant b. Financial - Marketing department a. Marketing manager b. Sale staff d. Marketing staff - IT department - Public relation department - Security department - Human resource department - Lawyer department a. Lawyer b. Follower debt - Housekeeping Total salary per month Annotation Give 0.01% commission of total sale for sale person, which is not including the salary.
65

1 person

30,000 bath

2 persons (20,000*2) 2 persons (16,000*2)

40,000 bath 32,000 bath

1 person 3 persons (12,000*3) 2 persons (12,000*2) 2 persons (11,000*2) 2 persons (10,000*2) 2 persons (9,000*2) 2 persons (15,000*2)

27,000 bath 36,000 bath 24,000 bath 22,000 bath 20,000 bath 18,000 bath 30,000 bath

2 person (18,000*2) 4 person( 15,000*4) 2 persons (8,000*2)

36,000 bath 60,000 bath 16,000 bath 361,000 bath

Electricity Expense per Month

Electricity Normal Rate (Residential) Consumption not exceeding 150 kWh per month First 5 kWh (0 5th) Next 10 kWh (6th 15th) Next 10 kWh (16th 25th) Next 10 kWh (26th 35th) Next 65 kWh (36th 100th) Next 50 kWh (101st 150th) Next 250 kWh (151st 400th) Over 400 kWh (401st up)

Energy Charge(kWh) Baht

0 1.3576 1.5445 1.7968 2.1800 2.2734 2.7781 2.9780

Office Estimate use of electricity 600unit 2.9780 = 1786.8 Baht Total =1786.8Baht

66

Water Expense per Month Water Volume Used (cubic meters) Water rate (per cubic meter) (minimum 45 baht) Baht 0-30 31-40 41-50 51-60 61-70 71-80 81-90 91-100 101-120 121-160 161-200 201 up 8.50 10.03 10.30 10.68 11.00 11.33 12.50 12.82 12.15 13.47 13.80 14.45

Forecast use of 40cubic meter 10.03= 401.2Baht Add (7%) =28.084 Baht Total expense of water per month = 401.2 +28.084=429.284 Baht

67

Telephone Expense The company has installed twelve telephones in the office to use for the business, such as contacting customers. The amount of telephone usage is estimated to be 400 times per month, with telephone fee for 3 Baht per one call.

Calculating telephone expense per month Telephone usage 400times3 =1200Baht Add (+) VAT 7% Add (+) Service Chart Total = 84Baht =100Baht = 1384Baht per year

Internet (3BB)
Hi Speech internet 10MB Add (+) VAT 7% Add (+) Service Chart Total =1490Baht =104.3 Baht =100 Baht =1694 Baht per year

68

Drinking Water We order the water from Chang Company and they supply the water for our company. One day we use two gallon of water. The whole month we use 60 gallon of drinking water. Drinking water expense Gallon 18.9Liter 70Baht60= 4200Baht Total expense of drinking water = 4200 Baht per year

69

6.3 Description
Year 1

Description Salary Commission 2% Buy Fee Electricity expense Water expense Telephone expense Internet expense Drinking water expense

JAN 339,000 19,381 6,200,000 7745 429.284 1384 1694 4200

FEB 339,000 7,454

MAR 339,000 7,454

APR 339,000 10,436

MAY 339,000 17,890

JUN 339,000 4,473

JUL 339,000 7,454

AUG 339,000 7,454

SEP 339,000 7,454

OCT 339,000 22,363

NOV 339,000 29,817

DEC 339,000 37,271

Total 4,068,000 178,901 6,200,000

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

92940 5151.408 16608 20328 50400

Total

6,573,833

361,906

361,906

364,888

372,343

358,925

361,906

361,906

361,906

376,815

384,269

391,723

10,632,328

70

Year 2
Description Salary Commission 2% Buy Fee Electricity expense Water expense Telephone expense Internet expense Drinking water expense 7745 429.284 1384 1694 4200 7745 429.284 1384 1694 4200 7745 429.284 1384 1694 4200 7745 429.284 1384 1694 4200 7745 429.284 1384 1694 4200 7745 429.284 1384 1694 4200 7745 429.284 1384 1694 4200 7745 429.284 1384 1694 4200 7745 429.284 1384 1694 4200 7745 429.284 1384 1694 4200 7745 429.284 1384 1694 4200 7745 429.284 1384 1694 4200 92940 5151.408 16608 20328 50400 JAN 339,000 19,381 FEB 339,000 7,454 MAR 339,000 7,454 APR 339,000 10,436 MAY 339,000 17,890 JUN 339,000 4,473 JUL 339,000 7,454 AUG 339,000 7,454 SEP 339,000 7,454 OCT 339,000 22,363 NOV 339,000 29,817 DEC 339,000 37,271 Total 4,068,000 178,901

Total

373,833

361,906

361,906

364,888

372,343

358,925

361,906

361,906

361,906

376,815

384,269

391,723

4,432,328

71

Year 3

Description Salary Commission 2% Buy Fee Electricity expense Water expense Telephone expense Internet expense Drinking water expense

JAN 339,000 19,381

FEB 339,000 7,454

MAR 339,000 7,454

APR 339,000 10,436

MAY 339,000 17,890

JUN 339,000 4,473

JUL 339,000 7,454

AUG 339,000 7,454

SEP 339,000 7,454

OCT 339,000 22,363

NOV 339,000 29,817

DEC

Total

339,000 4,068,000 37,271 178,901

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

92940 5151.408 16608 20328 50400

Total

373,833

361,906

361,906

364,888

372,343

358,925

361,906

361,906

361,906

376,815

384,269

391,723 4,432,328 72

Year 4

Description Salary Commission 2% Buy Fee Electricity expense Water expense Telephone expense Internet expense Drinking water expense

JAN 339,000 19,381

FEB 339,000 7,454

MAR 339,000 7,454

APR 339,000 10,436

MAY 339,000 17,890

JUN 339,000 4,473

JUL 339,000 7,454

AUG 339,000 7,454

SEP 339,000 7,454

OCT 339,000 22,363

NOV 339,000 29,817

DEC 339,000 37,271

Total 4,068,000 178,901

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

92940 5151.408 16608 20328 50400

Total

373,833

361,906

361,906

364,888

372,343

358,925

361,906

361,906

361,906

376,815

384,269

391,723

4,432,328

73

Year 5

Description Salary Commission 2% Buy Fee Electricity expense Water expense Telephone expense Internet expense Drinking water expense

JAN 339,000 19,381

FEB 339,000 7,454

MAR 339,000 7,454

APR 339,000 10,436

MAY 339,000 17,890

JUN 339,000 4,473

JUL 339,000 7,454

AUG 339,000 7,454

SEP 339,000 7,454

OCT 339,000 22,363

NOV 339,000 29,817

DEC 339,000 37,271

Total 4,068,000 178,901

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

7745 429.284 1384 1694 4200

92940 5151.408 16608 20328 50400

Total

373,833

361,906

361,906

364,888

372,343

358,925

361,906

361,906

361,906

376,815

384,269

391,723

4,432,328

74

Chapter7

F I N A N C I A L

A N A L Y S I S
75

Finance analysis
Our firm loan amount will be total of 720,000,000 baht and we will give back the interest rate at 10% of year3, 12% for year4 and 15% for upper year5 for the maximum rate according to the Thai law. The table below will show the payment table of the return. An Principal Amount Annual interest Rate year 3 Annual interest Rate year 4 Annual interest Rate MLR-0.5% 720,000,000 10% 12% 15% 9.5% (Now MLR 8% Loan Period in Years 20

And these are the financial ratio analysis of Sky Light Current ratio mainly used to give an idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable the company is of paying its obligations. Quick ratio is viewed as a sign of company's financial strength or weakness (higher number means stronger, lower number means weaker). Inventory turnover ratio measures the number of times, on average, the inventory is sold during the period. Its purpose is to measure the liquidity of the inventory. A popular variant of the Inventory turnover ratio is to convert it into an average days to sell the inventory in terms of days. Total asset turnover ratio this is a measure of how well assets are being used to produce revenue.
76

Gross profit margin show remains from sales after a company pays out the cost of goods sold. Net profit margin this number is an indication of how effective a company is at cost control. The higher the net profit margin is, the more effective the company is at converting revenue into actual profit. Operating profit margin indicates how effective a company is at controlling the costs and expenses associated with their normal business operations. Return on asset a measure of a company's profitability, equal to a fiscal year's earnings divided by its total assets, expressed as a percentage. Debt ratio this will tell you how much the company relies on debt to finance assets. In general, the lower the company's reliance on debt for asset formation, the less risky the company is since excessive debt can lead to a very heavy interest and principal repayment burden. The times interest earned ratio is an Indicator of a companys ability to meet the interest payments on its debt. The higher the times interest earned ratio, the more likely it is that the corporation will be able to meet its interest payments. Income statement showed the operation results of the Sky Light over 60 months. It matches the income and the expense in the same period, and we can calculate the net profit in the period of time. The important thing about an income statement is that it represents a period of time. This contrasts with the balance sheet, which represents a single moment in time. Balance sheet are the summarizes a company's assets, liabilities and shareholders' equity at a specific point in time. This balance sheet gives investors an idea as to what the company owns and owes, as well as the amount invested by the shareholders. Cash flow refers to the movement of cash inflow and cash outflow of Sup-tar Bra. It is usually measured during a specified, finite period of time. Measurement of cash flow can be used to determine a project's rate of return or value. The time of cash flows into and out of projects are used as inputs in financial models.

77

7.1 Income Statement

Year 1

78

Year 2

79

Year3

80

Year 4

81

Year 5

82

7.2 Balance Sheet

For the month ended January 31, 2012 Year 1

83

Year 2

84

Year 3

85

Year 4

86

Year 5

87

7.3 Income Statement Cash Flow

5 Year

88

7.4 Common Size Statement

Balance Sheet

89

Chapter 8

I S K M A N A G E M E N T
90

8.1 Strategies to prevent bad debt

1. Prepare information for the accounts receivable 2. Check the history of debt in the past 3. Discuss about the debtor in the past 4. To understand the reason for the payment 5. Use the previous system to debt the debtor 6. To create a good atmosphere 7. Must have gentle tones with debtors 8. Must ask creative questions to debtors, dont force on them. 9. Care about the question, although expect 10. Respond to understand with debtors 11. Find the ways to solve problems for the debtors 12. Must understand and encourage 13. Finished by knowing the benefit of repayment

91

8.2 Income Statement Sale Decrease 5% Year 1

92

Year 2

93

Year 3

94

Year 4

95

Year 5

96

8.3 Income Statement Sale Decrease 10%

Year 1

97

Year 2

98

Year 3

99

Year 4

100

Year 5

101

8.4 Income Statement Sale Decrease 15%

Year 1

102

Year 2

103

Year 3

104

Year 4

105

Year 5

106

8.5 Income Statement Cost Increase 5%

Year 1

107

Year2

108

Year 3

109

Year 4

110

Year 5

111

8.6 Income Statement Cost Increase 10% Year 1

112

Year 2

113

Year 3

114

Year 4

115

Year 5

116

8.7 Income Statement Cost Increase 15%

Year 1

117

Year 2

118

Year 3

119

Year 4

120

Year 5

121

8.8 Comments on Liquidity ratios

122

Chapter 9

SUMMARY
123

Summary From this project feasibility, I have learned about the process to business especially in Thai loans business. This project has study about the demand of customer in present. Nowadays, loans business is important because in Thailand currently want parties will not wanting money in circulation and enough to spend the day. So, we thing make this project for help people in Thailand. In this business, the product differentiation is very importance because there are a lot of competitors both direct competitor and indirect competitor. And then focus to value of business that can make the high value for the same business in the same market. So, this market is a large market and a lot of customer. Who are our customers? , Our company is loan business. And we allow the customers who have the salary above 15,000 Bath to loan. If the customers need to get money from our company, they must take something that suitable for their loan. For example, lands, houses, gold, etc. We also do the register for the customers because we dont need to misunderstand with each others. And we save all of information in our computers. We also take care all of the customers who come to loan from our company. In sale forecast, it forecast the revenue and expense from number of money to customer that are the medium rate that can sale. However, our company is a new brand in market. The customer do not knows us as well. Thus, our company should use marketing communication mixed to contract with customers that make them to know and recognize our company such as advertising, radio, and discount coupon. In human resource are important factors because that effect directly with our company to sales. In finally, thing are importance in this project is part of financial analysis because details for inventor to measure this company should invest or not. In this chapter, we do the 3 statement are net income, cash flow and balance sheet.

124

SEAT 07
1. Miss Suchada Chupakdee 2.Mr.Natthapong Narakorn 3.Miss Mee Hnay 4.Miss Moe Pwint Phyu 5.Miss Nang Noon 6.Miss Nang Ying Loung 7.Miss Nang Tip Phoo 8.Mr. Anuchit Srihachai ID 5231203191 ID 5231203511 ID 5331203162 ID 5331203163 ID 5331203167 ID 5331203170 ID 5331203189 ID 5431203093

125

When you see the Trouble, You can see the Light from Sky.
(Sky light)

126