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MVELEDZANDIVHO MULTI-PURPOSE
CO-OPERATIVE LIMITED
Company Information
Issued Date:..........................
Legal Name: Mveledzandivho Multi-Purpose Co-Operative Limited
Trading Name: Mveledzandivho Multi-Purpose Co-Operative Limited
CK Number: 2012/017322/24
CONTACT PERSON:
Mrs Lorraine Mashudu Khangale
Cell:
POSTAL ADDRESS:
P.O Box 1
Mukula
0978
BANK DETAILS:
Name of Bank:
Account Number:
Account Type: Cheque Account
Confidential Agreement
_________________________
______________________________
Signature
Name:
____________________
financial institutions.
2. To give the owner who wants to start the clothing production business a much better idea of
whether the owner should really get involved in this type of business at all, through
determining the commercial, technical and financial viability.
3. To serve as a useful guide for the business to check continuously how the business is gettingon in achieving its goals
5. To serve as a very good document for outsiders, like banks or suppliers of credit, to see
whether they are interested in getting involved in the affairs of the business or not.
In a nutshell This business plan is a road map that tells business owner where to
go, and allows the owner to check if the team is on the right road.
2.
Keys to success..9
3.
Financial Summary.....9
4.
5.
Section 1
MARKETING PLAN
1.1
1.2
1.3
Competition.10
1.4
1.5
Location..11
1.6
Market Area11
1.7
Targeted Customers.12
1.8
1.9
Total Demand.12
1.10
Market Share...12
1.11
Selling Price12
1.12
Sales Forecast...12
1.13
Marketing Strategy14
1.14
Marketing Budget..14
Section 2
MANUFACTURING PLAN
2.1
2.3
2.4
2.5
Labour.....17
2.6
Overhead Expenses....17
Section 3
ORGANISATION & MANAGEMENT PLAN
3.1
Form of Business.18
3.2
Organisational Structure.18
3.3
3.5
Pre-Operating Expenses.....21
3.6
Administrative Expenses21
Section 4
FINANCIAL PLAN
4.1
Capital Required....22
4.2
4.3
4.4
4.5
4.6
Balance Sheet....28
4.7
4.8
4.9
Exit Plan...30
EXECUTIVE
SUMMARY
1.
2.
Keys to success
3.
Financial Summary
The table below is a brief summary of the profit and Loss statement.
4.
5.
Section 1
MARKETING PLAN
1.1
Our products are quality made from a high quality materials, our advantage is that we
also going to do embroidery of company name on the garment. This products are
chosen because they are in demand or requirement, are weared 5 days a work. This
1.2
Competitors
Mveledzandivho Multi-Purpose Co-Operative Limited is facing competition from,
Chrystal Garments, its factory location is in Shandima industrial and it has two retail
store in Thohoyandou town. The company produce school uniform, t-shirts and general
workers work-suits. The company is own by Philippians.
The indirect competitors is clothing shop around Thohoyandou town who buys and sell
uniform and general workers suite and gowns to customers who come and buy in the
store.
1.4
Competitive Advantage
Mveledzandivho Multi-Purpose Co-Operative Limited will distinguishes itself from its
competitor
Our advantage is that we are bluck new BEE act requirement give preferences to
bluck own companies.
Competitors does not provide safety clothing we provide and safety is one mandatory
according the labour act in most job.
Our marketing strategy is that we will do personal visit to all started institutions and
companies.
Because of few competitors their prices are high we will price our price slightly below
the competitorss price.
Offer a bulk discount
By keeping the overhead low, the business will be able to channel the profits back
into operations thus avoiding high debt ratios or lost sales opportunities.
Consideration will also be given to attending trade shows around the country.
1.5
Location
The business will is located at Mukula Village found in Thulamela Municipality, Vhembe
District, and Limpopo Province, South Africa. This location has been selected because
of the following reasons: it is far from its competitors and closer to its targeted
customers and also near to the owners homes.
1.6
Market Area
10
1.7
Targeted Customers
The business main targeted customers is schools by supplying uniform and embroidery
of emblem on the uniform. Other majority of school in our area they need such
embroidery. As we will be local and cheaper than their supplier at same time providing
high quality I believe that they prefer us.
The other customers will be cleaning companies, constructions, electrical companies,
municipality, university and mining companies who need work-suit with their emblem.
This people they use work-suit as uniform for all their general workers.
The other Customer group are our current customers who are currently purchasing a
traditional clothing Minwena from us. This people purchase when they are attending
traditional wedding ceremony and other during thier clud called Tshisevhesevhe were
they will be dancing traditional songs wearing traditional clothing.
1.8
11
1.9
Total Demand
The market survey indicated that they are the demand of school uniform. Competitors
visited said that they sometime reject orders of people due to the high load of work. The
survey also indicates that half of our targeted market prefers traditional clothing and
they are failing to get them because of shortage of manufacturing companies.
1.10
Market Share
Because the demand for African and traditional clothing is higher than supply , and
competitors are few, and current manufacturing can only cover less than 15 percentage
of potential customers and our competitors does no specialise with products made from
specialise materials, and our products are surveyed to be a customers preference. As
the demand for African and traditional clothing are far above the ground we believe that
every single one of our product produced will be purchased in full and our capacity is
12 items per day.
The research indicates that there is high a necessity for extra, African and traditional
clothing production companies in Vhembe District area and South Africa as a whole.
1.11
Selling Price
Our prices are based on the cost plus margin and combining with what the customers
are willing to pay method. This cost take inconsideration all material, overheads cost,
direct labour cost and other production cost. Our production cost increase per size and
type of products but it is still very low. Our average price considering both strategies is
R520 per items. This is a price the customers survey indicated that is still very cheap
and they are willing to pay this price.
1.12
Sales Forecast
If the production capacity is 12 items per day and the price is R520 per item then, the
daily sales will be R 6,240 per day R149,760 (R6,240x24days) per month.
1.13
Marketing Strategy
12
1.14
Marketing Budget
Our marketing budget will be consist of travelling cost, to business customers, stores
roads show sales, which can be done three times every year. The monthly budget will
be budgeted for the catalogue, brochure and business cards which we have arranged
with SEDA to assist us with promotional materials.
13
Section 2
MANUFACTURING PLAN
2.1
14
2.3
The annual depreciation cost, assuming no scrap value, will therefore be:
15
The increase is estimated at 10% in all products and Services for the entire years.
2.5
Labour
Direct Labour
2.6
Overhead Expenses
Overhead costs are monthly indirect cost of the business. The table below shows the
breakdown of categories of expenses.
Section 2
MANAGEMENT PLAN
16
3.1
Form of Business
The business has been formed and registered as co-operative; the following
represent the director Mashudu Khangale Lorraine, Ndidzulafhi Eunice Mudau,
Tondani Mavis Tshinyani, Virginia Netshivhera and Takalani Florance Mulaudzi. The
Legal name of the business is Mveledzandivho Multi-Purpose Co-Operative Limited
and the business will the same name. The Management team is highly motivated,
experienced and well qualified. The team is strongly positioned to take advantage of
this opportunity.
3.2
Organisational Structure
Mashudu Lorraine Khangale will serve as the General Manager (Chair Person) and
will be responsible for the day-to-day running of the business.
Ndidzulafhi Eunice Mudau as the Finance Manager and be responsible for the
evaluation of data pertaining to costs in order to plan budgets, evaluate financial
reporting systems, accounting and collection procedures, and investment activities, and
make recommendations for changes to procedures, operating systems, budgets, and
other financial control functions, and also to prepare operational and risk reports for
management analysis.
Virginia Netshifhera as the Manufacturing/ Production Manager who will be
responsible for overseeing the manufacturing process, drawing up a manufacturing
schedule, ensuring that the manufacturing is cost effective, coordinate, set up and
implement standard operating procedure for all manufacturing operations, drafting a
timescale for the job, reviewing the performance of subordinates, working with
managers to implement the companys policies and goals and
Ndidzulafhi Eunice Mudau as the Marketing Manager and will be responsible of
studying competitors' products and services, exploring ways of improving existing
products and services, and increasing profitability, and identifying target markets and
developing strategies to communicate with them. Two of the experienced firm workers
will be sewers assistant.
17
Table
3.2
Organisation
Chart
General Manager
(Mashudu Lorraine
Khangale)
Bookkeeper
secretary
(Outsourced)
Financial Manager
(Ndidzulafhi Eunice
Mudau)
3.3
Production
Manager
(Virginia Netshifhera
Shonisani)
Marketing Manager
(Ndidzulafhi Eunice
Mudau)
Pre-Operating Activities
Owners have listed down the following activities to be undertaken before they can
operate the business:
1.
4 weeks
2.
8 weeks
3.
1 week
4.
Hiring labour
2 days
5.
2 days
6.
2 days
The owner aims to implement her operation approximately two months after the grant
application, or six weeks after release of his grant.
These pre-operating activities with their corresponding timetable appear in Table 3.4 in
a Gantt chart.
18
Table 3.4
Gantt chart
10
11
12
13
14
15
16
17
18
3.4
Pre-Operating Expenses
These costs are as follows:
3.5
Administrative Expenses
The owner wants to keep their cost as low as possible in order to be competitive.
The only cost they will incurre is the cost of communicating with supplier during
ordering stock or raw materials and during the need of repair.
The increase is estimated at 10% in all products and services for the entire years.
Section 4
FINANCIAL PLAN
4.1
Excludes depreciation expenses and amortisation of pre-operating expenses which are non-cash items.*
4.6
4.7
4.8
Business Plan
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