Beruflich Dokumente
Kultur Dokumente
Business Plan
&
Cash Flow Projections
CONTENTS
The Owner
Objectives
Market Research
Staff
Funding
Projections for the three accounting years to October 2006, 2007 and 2008,
including:
- Highlights
- Survival Ratio
- Sales Analysis
Conclusion
The proposed venture is organised by Mr. Mark Smith who is at present the owner
of the successful Property managed business “I-PROPERTIES LTD.”. With a
substantial experience in the area of business management and a very well
established client base Mr. Smith is ideally positioned to undertake this venture.
OBJECTIVES
Our aim is to provide a local Car and Van Rental Service in Stoke at a completive
market rates. In addition to the core business of car rental we are also planning to
provide Caravan Storage Facility. We believe that this service will be particular
popular as it will provide caravan owners with a very cost effective (£15 pounds
per week) and totally secure way of storing their caravans. As well as the above
we are also planning to create the facility to store Damaged Vehicles. This facility
can be used by individuals as well as other businesses. Finally we also will be
offering a Damaged Vehicles Recovery service.
MARKET RESEARCH
We envisage that the following points will be our keys to successfully establishing
the new business: -
− Our large client database already includes many addresses of satisfied
customers from the Stoke area and beyond.
− Many of these customers have asked us when we will open a car rental
business.
− We have already established a partnership arrangement for the Damaged
Vehicle Storage facility with another local business.
− At present there are no available Caravan storage facilities available in the
local area.
− Based on our market research the prices for Car & Van rental are very
completive comparing to the competition.
Mr. Smith will be managing this business directly eliminating the need for an
additional managerial post. In addition to the manager two support staff will be
employed to ensure that the business runs smoothly.
FUNDING
The estimated setup costs per the cash flow statement are summarised in the
table below.
Item Cost
(Incl. VAT)
Cost of Vehicles £65,650
Legal fees £500
Initial advertising £4,000
Refurbishment £3,500
Computers & Furniture £2,000
CCTV & Security £1,500
Car Insurance £2,100
Road Tax £2,850
Rent & Rate £2,500
TOTAL £84,600
Capital introduced £ 35,000
by directors
Bank loan £ 50,000
The attached cash flow, profit and loss and balance sheet projections are based
on the following assumptions and estimates: -
We estimate for the vehicle to be initially occupied 10 days per month with the
growth up-to 20 days per month by November.
− The business will be able to store up-to 20 caravans at the rate of £15 per
week.
− The business will store on average 5 damaged vehicles at the rate of £12 per
week.
− Initial sales in the first month are estimated at £8,300.
− An estimated £20,000 sales per month is envisaged from December 2006
once the business has reached its full capacity.
Item Cost
Vehicles – Finance Lease Repayments £1,481
Advertising £400
Car Insurance £2,100
Vehicle Service & Maintenance £750
Rent & Rate £2,500
Staff Cost £3,000
Loan Repayment & Interest £400
Capital Lease - Interest £121
TOTAL £10,752
The business operates on a cash basis; as such there are not debtors or creditors
HIGHLIGHTS
250,000
200,000
150,000
Revenue
100,000 Profit
50,000
0
2006/07 2007/08 2008/09
2006/0 2008/0
Description 7 2007/08 9
Operating Profit / Assets (%) 50.80 35.90 31.20
Acc. Profit / Assets (%) 48.30 66.60 77.00
Equity / Debt (%) 228.90 420.60 673.20
Working Capital / Assets (%) 60.10 74.90 84.00
Survival Ratio
6.00
5.00
4.00
2006/07
3.00 2007/08
2008/09
2.00
1.00
0.00
2006/07 2007/08 2008/09
Fixed Expenses
Rates 417 417 417 417 417 417 417
Rent 2,083 2,083 2,083 2,083 2,083 2,083 2,083
Personnel Cost
Managing Director 1,000 1,000 1,000 1,000
Company Secretary 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Car Cleaner 833 833 833 833 833 833 833
Total Personnel Cost 1,833 1,833 1,833 2,833 2,833 2,833 2,833
20,83
Total 7,683 6,883 8,633 8,633 8,633 8,633
3
Fixed Expenses
Rates 417 417 417 417 417 5,000 5,250 5,513
Rent 2,083 2,083 2,083 2,083 2,083 25,000 25,000 25,000
Building Insurance 50 50 50 50 50 600 600 600
Advertising 400 400 400 400 400 9,200 4,800 4,800
Accountancy Fees 700 700 1,200 1,200
Legal Fees 500
Building Work 3,500
Computers & Furniture 2,000
Personnel Cost
Managing Director 1,000 1,000 1,000 1,000 1,000 9,000 12,000 12,000
Company Secretary 1,000 1,000 1,000 1,000 1,000 12,000 12,000 12,000
Car Cleaner 833 833 833 833 833 10,000 10,000 10,000
Total Personnel Cost 2,833 2,833 2,833 2,833 2,833 31,000 34,000 34,000
Total 8,633 8,633 9,333 8,633 8,633 113,800 108,660 108,922
Mar- May-
Description Apr-07 Jun-07 2006/07 2007/08 2008/09
07 07