Documente Academic
Documente Profesional
Documente Cultură
Entrepreneurship and
Small Business Management
Maharshi Dayanand Saraswati University, Ajmer
ACKNOWLEDGMENT
CONTENTS
• Mission
• Unique Features
• Objectives
• Production Time
• Material
• Labour Requirement
• Location
Market Analysis
• Market Segmentation
• Marketing Mix
• Marketing Strategy
Operational Requirements
ACKNOWLEDGMENT
It gives us immense pleasure in a submitting this Project of Business Plan
Development (BPD) for the Semester VI As the part of BBA in
Before we explain about our Business Plan, We would express thanks from
the core of our heart to Mr. Hemraj Sharma, Who is the owner of HB.
Furniture House, Ajmer for suggesting and helping us in preparing this
Business Plan. Without there co-operation and help we wouldn’t have been
in a position to complete our Business Plan.
Defining Handicrafts:
Definition According to United Nations Educational, Scientific and Cultural
Organization/Information Technology Community (UNESCO/ITC)
International Symposium on “Crafts and the International Market: Trade and
Customs Codification”, Manila, Philippines, October 1997:
Today the people are more aware of furnishing and interiors of their houses,
so they ask for a large rang of variety end excellent services which are the
main aim of KHALSA COLLECTION- “SOMETHING DIFFERENT AND
AFFORDABLE.”
This Business Plan Unit is a small retail business aimed at a big time in order
to reach its lofty goals and stands for its quality and affordable prices in the
markets of its product like Dinning Tables, Single or Double Beds with
different features, Dressing Tables, Antics, Show Piece, Wooden Toys, All
over Furniture Goods are available in our Furniture Mart.
It will be providing the products which already exist in the market and will
also provide a new breadth of air in the market through the availability of
unique products and services. Our unique selling preposition will target the
customers with their unique demands.
MISSION-
‘Khalsa Collections’ will build its image as a quality first and then will begin
earning higher profits.
UNIQUE FEATURES-
OBJECTIVES-
PRODUCTION TIME-
LABOUR REQUIRMENTS-
Handicraft is a labour intensive product and it is all depend upon labour only
and all kind of labour requirements are there like in this we need skilled,
semi skilled and unskilled workers. So total requirements are as follows:
Salary (Rs.)
Employees Number
Per day Per month Annually
Production
1 - 5000 60000
Supervisor
Accountant 1 - 5000 60000
Skilled 54000*5 =
5 150 4500
Workers 2,70,000
Unskilled 36000*3 =
3 100 3,000
workers 1,08,000
Peon 1 - 2,500 30,000
Guard 1 - 2,500 30,000
Total 20 9,18,000
The rate of land is Rs 500sq meters (one side road plot), of area 2,000sq
meters or 21529sq ft
Structure and Civil works:
S. Particulars Size Area Rate Amount
No.
1 Factory shed 30”*60” 1800 200 3,60,000
2 2 stock room 18”*20” 360 200 72000
3 Guard room 8”*10” 80 200 16000
4 Power room 8”*10” 80 200 16000
5 Boundary wall 220000
6 Washroom 6”*8” 48 200 9600
5labour
quarters -
7 Room 12”*10” 120 200 24000*5=120000
8 Washrooms 6”*8” 48 200 9600*5=48000
9. Office room 15”*12” 180 200 36000
10. Fire fitting 39200
Total 9,36,800
MATERIALS-
KEY TO SUCCESS-
“KHALSA COLLECTION”-‘SOMETHING DEFFERENT AND
AFFORDABLE’ will build an impression in the mind of the customers
because the punch line itself explains about the different variet of product.
This punch line will also be printed on every poly bag of KHALSA
COLLECTIONS.
EXPECTED ACCOMPLISHMENTS-
The Business Unit expects to capture an additional 25% of the market share
in the second year, following this expansion and another 50% in the
following year.
MARKET ANALYSIS-
Geographical Area
Makarwali Road Vaishali Nagar, Ajmer
Source of Information
Primary (Market Survey) and Secondary data
Methodology Adopted:
Research plan was developed through conclusive research design using
descriptive research analysis methods by survey as detailed below:
Research Approach:
1. Primary data for gathering information regarding manufacturing
requirements and facilities available at Ajmer region was collected by
personal interview with different manufacturers selected on the basis of
random sampling survey method.
Research Instruments:
Collect the data on both the sensitivity of demand and supply, customer
preferences and to know the market potential and future growth.
After deciding the research approach and instruments, sampling plan was
prepared
Sampling Procedure: Simple random sampling method was used for survey
on representative basis.
Contact Method: Personal interview with each of the manufacturer and raw
material suppliers was conducted.
STRATEGIC MARKETING PLAN-
Wooden handicraft is being an unbranded commodity, so as such the
manufacturers incur no promotional expenditure. Sometimes they just
increase the commissions or the margins of these, if the targets are achieved
enormously.
But in order to differentiate the product and capture the existing market and
to develop strong customer base, some strategic marketing plan is necessary
to be designed and implemented.
• Apart from good quality good designs are an important factor. These
designs will be based on traditional pattern so that it can impress foreign
customer.
Machinery Involved
Cost of Project
Particulars Cost in Rs
Land & Site development 10,63,600
Building 9,36,800
Plant & Machinery 9,68,500
Other Fixed Assets 2,30,000
Preoperative Expenses 2,71,995
Preliminary Expenses 1,94,282
Provision for Contingency 1,94,282
WC Margin 26,189
Total 38,85,648
Means of Finance
Particulars Cost in Rs.
Promoter's Capital 12,95,203
Long/ medium Term Loan from
Banks 25,90,445
Total 38,85,648
Basic Assumptions underlying Financial Projections
The profitability and other projections may be prepared on the basis of
following assumptions:-
1.) The construction period will last for one year.
2.) The company would work for 360 days per year on a 1 shift
basis. The installed capacity on this basis works out to 12000.
3.) The company will start commercial production on July 1, of year 1.
The expected capacity utilization will be 60% in first year, 65% in the
second year, and 70% for the third year and so on.
4.) Wages and salaries are expected to be Rs 918000.
5.) Factory overheads expenses will be Rs 32880 for the first year.
6.) Administration expenses will be Rs 360000 per annum.
7.) The term loan will be repaid in 14 equal half-yearly installments, with the
first installment due at the end starting of first operating year. The interest
rate on the outstanding term loan will be 12%.
8.) The bank finance for working capital will cost 12% interest rate.
9.) The depreciation rates for company law purposes are as owes:
Building : 3.34%
Plant and Machinery : 8%
Miscellaneous Fixed assets : 5%
Annexure: 1
Questionnaire (Manufacturer)
Name____________________________
Company Name___________________
Area of production_________________
Year of Establishment___________________
2) From where you acquire the raw material for wooden handicraft?
a) Bihar c) Gujarat
a) Weekly c) Monthly
b) Fortnightly d) as required
4) Order size
a) Supplier b) Yourself
c) Metal made
a) Babul/Aakashiya d) Teak
b) Shisham e) Mango
c) Pine
a) 15 days c) 2 months
b) 30 day d) 4 months
9) From where you get the skilled workers for the ornamental work?
a) Saharanpur c) Jaisalmer
b) Barmer d) Locally
Bibliography
• www.indianhandicraftexporter.com
• www.google.co.in
• www.wikipedia.com
• www.yahoo.com
• www.ori.nic.in
• www.answers.com
• www.handicraftdpr.htm
Annexure: 2
Annexure: 5
Tax Calculation
1st yr 2nd yr 3rd yr
Profit/ Loss Before Tax 817991 991832 1165670
Add: Depreciation for company
law purposes 241169 241169 241169
Total 1059160 1233001 1406839
Less: Depreciation for Tax
purposes 959085 664463 465534
Gross Total Income 100075 568538 941305
Total Income 100075 568538 941305
Annexure: 8
BREAK EVEN POINT FOR THE PROJECT
Amount Amount Amount
A Sales Realisation 3288000 3562000 3836000
B Variable Costs
Raw Materials 750000 812500 875000
Interest On Working Capital 1928 2088 2249
Power & Water 60000 65000 70000
Selling & Distribution Expenses 50000 54167 58333
Total 861928 933755 1005582
C Fixed Cost
Wages And Salaries 480000
Repairs And Maintainance 10000
Depriciation 241169
Administrative Expenses 360000
Interest On Term Loan 299750
Total 1390919 1390919 1390919
73.7856
p/v ratio 4