SMALL BUSINESS MANAGEMENT.

TITLE SUBJECT CODE GROUP MEMBERS : - GARMENT BUSINESS PLAN. : - DED 2013 :-

FACULTY OF COMMERCE AND MANAGEMENT. EASTERN UNIVERSITY, SRILANKA.

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BUSINESS PLAN

WARSHA GARMENT Miss. S. WARSHA. #10, BAR ROAD, BATTICALOA.

1)

EXECUTIVE SUMMARY
Warsha Garment

Name of business: -

Type of business

Manufacturer

Service Operator

Retailer

Wholesaler

Products or Services: Targeted customers:

Shirts.

People who are living in Batticaloa Town, Kattankudy, Eravur and its surrounded area

Owner/s of the business and his/her/their qualifications and business experience:

Owner of the business: Qualifications & Experience: Miss. S. Warsha For this business no need any special qualification. I have more than 5 years working experience in a garment.

Number of staffs:

Four People (15) (Owner & other 14 workers.)

Required start-up capital Rs: 300,000

Source of start-up capital. 01. Own Money 02. Bank Loan Amount Rs. 261,000 1,000,000 1,261,000
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2) MARKETING PLAN
2.1) MARKET RESEARCH

1 Products or services 01) Shirts I.

2 Customers

3 Needs & preferences of customers

4 Competitors

Individuals Retailers prefer different size of shirts. Good quality of shirts. Continuous supply. Low Price. Ancheneyar Garments :Individuals & companies those who are sewing apparel.

II.

Retailer Shops

High price. Some of the whole sellers prefer good quality shirts. Flexible sizes. Availability Interruption in operations Low quality

III.

Wholesalers .

Ahemad Garment :(Kattankudy) Some of the whole sellers prefer good quality of Shirts. Flexible sizes. Higher price Low quality No flexible sizes

2) MARKETING PLAN
2.2) PRODUCT

Product, service or Range of Products/ Services 1. Shirts Quality Color Size Packaging Higher quality shirts. All colors whichever want Different flexible sizes (Small, Medium, Large, Extra Large, Double Extra Large ) Quality pack made by polyester with the label of WARSHA GARMENTS

2) MARKETING PLAN
2.3) PRICE (For manufacturers and service operators)
Details. Product or services Shirt.
Cost How much customers are willing to pay? 410.(Large) 600Rs. 700Rs. per Shirt. (Large) by Individuals. 550Rs. 700Rs. per Shirt. (Large) by Retailers and Wholesalers. 700Rs. 800Rs. per Shirt.( Large) 550Rs. per Shirt.( Large) Relationship with the customers. Cost Cost of production is considerably low. Profit Certain level of Profit. Competitors price. Discount will be given to the following customers or type of customers Regular customers. Relations and Friends. Textiles. Reason for giving discounts To survive within high competition. To increase sales. To maintain a good relationship with the customers. Credit will be given to the following customers or type of customers Individuals. Retailers. and Wholesalers. Reason for giving credit When People ask, giving credit sale opportunity. Allow Credit sale to the regular customer is safety. It is a motivation to again and again purchase.

Competitors price My price Reasons for setting this price

2) MARKETING PLAN
2.4) PLACE Location
Describe the planned location of the business: Miss. S. Warsha, #10, Bar Road, Batticaloa. This location is chosen for the following reason: The main reason for selecting this place for business is my home near to town. So it is an opportunity to get cloths and other materials very easy. Cost reduction, carrying is easy and continuous supply is possible. My house is near to the main road, and Im using a part of my house as a garment. A lot of textiles are near to my garment, so its easy for my delivery. There is a school also in near to my home, so people who are teaching in there, possible to purchase my shirts. Method of distribution The business will distribute the products to: Wholesalers Individuals By way of: Direct Distribution

Retailers

Others

: - For Individuals, Wholesalers, and Retailers.

This way of distribution is chosen for the following reasons: Individuals come to our place and they immediately buy the product. To the wholesaler and retailer we are providing delivery service if they need. Through a person, we are providing this service.

2) MARKETING PLAN
2.5) PROMOTION

TYPE OF ADVERTISING 01)

DETAILS

COST 500

Name Board in the Name of the shop is written in a small board as Building. Warsha Garment and it is hanged in front of my shop. Talking Through the peoples mouth we informed that we are selling the gee production. Prices of the product is displayed at the window of my shop. Label in the product is also helps to customers. Label contain Name of the Shop. Address. Telephone Number.

02)

03)

Price List

04)

Labels

500

TYPE OF SALES PROMOTION 01) 02) Free Delivery. Providing Discount

DETAILS To Shops which are in near to our area.

Discount is given to: Regular customers. Known peoples. Relations and Friends. Shops.

COST 600.00 -

3) FORM OF BUSINESS
The business will operate as a : Sole Proprietorship.

The reason for choosing this form of business is: Easy to start the business. Small amount of capital is enough. More freedom. No need to share the profit with others Own decision making. Low Cost.

The owner will be Name :- Miss. S. Warsha.

Description of skills : There is no need of special skills requirements. Competition is high so better customer relationship is important.

Relevant Experience. : If the staffs have experienced in this field it is better to do this work well, and if the employee have the experience it leads to increase our output.

4) Staff

TASK

Measuring Cutting.

NO OF WORKERS REQUIRED & 2 Workers.

SKILLS AND EXPERIENCE NEEDED Experience is important, or Good skill & Concentration is better. Very Good Experience & Skills for sewing is important. Active person(Working Quickly ), Patient also needed. To be Patient

HIS/HER RESPONSIBILITY WILL BE Concentrate on work.

TOTAL MONTHLY SALARY RS: 16,000 Rs.

Sewing

8 Workers.

Hard working, long time work. Long time work. Do the work quickly.

80,000 Rs.

Finishing Buttons

With 2 Worker.

16,000 Rs.

Ironing Packaging

1 Worker. 1 Worker.

Perfect Finishing

6,000 Rs. 6,000 Rs.

Delivery Purchases.

& 1 Worker.

Can able to identify Check the perfect the different quality & finishing of shirts sizes of shirts. Deliver on time. Deliver at the correct time.

5,000 Rs 129,000 Rs.

Total salary

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5) LEGAL RESPONSIBILITIES AND INSURANCE

The following taxes apply to the business: - Nil

The following regulations apply to the employees:

- Nil

The Business will need the following licenses and permits: - Nil

The business will have the following insurance:

- Nil

(Im not registered my shop, so Tax payment, Employee laws, Licenses, Permits, and Insurance are need not. I dont have knowledge in these formal activities and also my shop is small so there was not need arise for these activities)

Other responsibilities of the business:

Even though Im not registered my shop, I have some responsibility. There are To fulfill the societys needed. Utilizing available resource in the environment. Producing good quality product. Paying reasonable amount to the employees.

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6) LOBOUR COSTS FROM

FOR MANUFACTURERS AND SERVICE OPERATORS
DIRECT LABOUR COSTS 1 2 3 4 5 INDIRECT LABOUR COST 6 7

Hours in production per month

Pay for time in production 16,000 Rs. 96,000 Rs.

Measuring & Cutting Sewing Finishing

160 hrs. 165 hrs. 160 hrs 150 hrs. 140 hrs. -

16,000 Rs. 80,000 Rs. 16,000 Rs. 6,000 Rs. 6,000 Rs. Total

160 hrs 325 hrs.

150 hrs 140 hrs. 775hrs.

6,000 Rs 6,000 Rs. 124,000 Rs. 120 hrs. 120hrs 5,000 Rs. 5,000 Rs.

Ironing Packaging Delivery & Purchases

Total pay for time in production. Total hours in production per month

124,000 775

DIRECT LABOUR COST PER HOUR = 160 Rs.

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Hours not in production per month Pay for time not in production -

Total working hours per month Total

monthly pay

Employees

7) INDIRECT COSTS FORM

INDIRECT COSTS PER MONTH

COST ITEM

Rs:

Measuring Tapes Packages Scissors Strings Bank interest Pre operative expenses (Name board, Labels, & Registration)
TOTAL INDIRECT COSTS PER MONTH

200 Rs. 2,000 Rs. 600 Rs 1,450 Rs. 1,500 Rs. 2,000 Rs.
7,750 Rs.

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8) PRODUCT COSTING FORM

PRODUCT: 1) DIRECT MATERIAL COST PER ITEM 1 Raw Material 2 Buying Cost 3 Quantity Per Item 4 Cost Per Item

* *

Cloth Buttons

70 Rs. 2 Rs Total

2 Yards 5

140 Rs. 10 Rs = 150 Rs.

2) DIRECT LABOUR COSTS PER ITEM ACTIVITY TIME PER ITEM (MAN HOURS)

Measuring & Cutting Sewing Finishing Ironing Packaging Total

3) INDIRECT COSTS PERITEM. INDIRECT COSTS PER HOUR = 10 Rs.
TOTAL INDIRECT COSTS PER MONTH (From Indirect Costs Form) TOTAL IN PRODUCTION PER MONTH (From Column 4 of labour cost form)

10 minutes. 40 minutes 20 minutes 10 minutes 10 minutes 1 & 30 Hrs X 160 Rs. = 240

INDIRECT COSTS PERITEM = 25 Rs. 7,750 775

2 hrs X 10 Rs. = 20 Rs.

4) TOTAL COSTS PER ITEM Costs 1) Direct Material 2) Direct Labour 3) Indirect Costs Total Cost Per Item Cost per Item. 150 Rs. 240 Rs. 20 Rs. 410 Rs.
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Sales

DETAILS

69050 7750 76800 115200 72000 264000 71050 5750 76800 115200 72000 264000 72650 5750 78400 117600 73500 269500 Mar 72650 5750 78400 117600 73500 269500 April 74250 5750 80000 120000 75000 275000 May 74250 5750 80000 120000 75000 275000 74250 5750 80000 120000 75000 275000 Jun Jul Feb

9) SALES AND COSTS PLAN

Direct material costs Direct labour costs Gross profit Jan

Indirect costs Net profit

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74250 5750 80000 120000 75000 275000 Aug 75850 5750 81600 122400 76500 280500 75850 5750 81600 122400 76500 280500 Sep Oct

74250 5750 80000 120000 75000 275000 Nov 75850 5750 81600 122400 76500 280500 Dec 949450 5750 95520 1432800 895500 3283500 Total 0

10) CASH FLOW PLAN

Pre-operative period (Rs) February March January April May DETAILS June (Rs) 614650 255000 25000 894650

(Rs)

(Rs)

(Rs)

1.Cash at the start of the month 2.Owners investment 261000

317500

374050

432600

492750

3.Bank loan

1000000 254000 264000 209500 219500 225000

CASH IN

4.Cash in from sales 5.cash in from credit sales 6.Any other cash in 7. Total cash in 8.investments on building 1261000 810000

10000

60000

50000

581500

638050

702100

762250

CASH OUT

9.mechinery and equipments 10.Other fixed assets

81500

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(Rs) 552900 50000 827900

11.Cash out for direct material costs

72000

72000

73500

73500

75000

75000

12.Cash for direct labour costs 13.Cash out for indirect costs 14.Pre operative expenses Interest 15.loan repayment 16.Any other cash out 17.TOTAL CASH OUT 50000 2000

115200

115200

117600

117600

120000

120000

7750

5750

5750

5750

5750

5750

1000 10000

1000 10000

1000 10000

1000 10000

1000 10000

1000 10000

1500

1500

1500

1500

1500

1500

943500

207450

205450

209350

209350

213250

213250

18.Cash at the end of the month

317500

374050

432600

492750

552900

614650

681400

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11) REQUIRED STARTED CAPITAL

Details. Rs. Rs.

Business premises.

Construction or purchases of building Conversion or reconstruction of business premises Sub Total Sewing Mechines Rollak Mechines Scissors Measuring Tapes Sub Total Name Board Label Registration Fee Sub Total Stock of raw material and finished goods Wages Other costs ( Buttons & Strings) Advanced payment for Suppliers Sub Total Grand Total.

800,000 10,000

810,000 64,000 16,000 1,000 500 81,500 500 500 1000 2,000 200,000

Machinery and Equipment

Pre-operative Expenses.

Working Capital.

124,000 2,500

50,000 367,500 1,261,000

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12) SOURCES OF STARTED- UP CAPITAL

Required started up capital Sources of startup capital Owners equity Bank loan

Rs 1,261,000

Rs 261,000 Rs 1,000,000

Collateral (if applying a loan) I collateral my own house for loan purpose at Bank of Ceylon , Batticaloa Town Branch.

Financial Ratios: 1. Return on investment:

= Annual Net profit X 100% Total Investment = 949,450 X 100% 1,261,000 = 75.29% = Annual Net Profit X 100% Annual Sales = 949,450 X 100% 3,283,500 = 28.91%

Net profit to Sales:

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13) ACTION PLAN

ACTION 1. Product CONTACT Customers Suppliers People those who are producing Gee. Competitors. Customers Ask from friends, Suppliers and customers. Inform to Friends, Neighbors, Relations and Customers. Family members, Friends, and others. People those who are producing Gee. Competitors firm Competitors, Business people, Knowledgeable persons Financial accountants WHEN Before starting the business and Running the business. Start of the business Running the business. When we decide to produce our product. Before start the business After star the business. Think about the business idea Before start the business. When we Preparing the business plan Before, and After Start the business. When prepare the business plan, when suffer from the loss Before start the business.

2. Price

3. Place

4. Promotion

5. Form of business 6. Staff

7. Legal responsibilities and insurance 8. Costing

9. Financial Planning

10. Required startup capital

Competitors, Banks, Relations, Friends and others.

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