Beruflich Dokumente
Kultur Dokumente
BUSINESS PLAN
ACKNOWLEDGEMENT
Through this acknowledgement I would like to express my sincere gratitude towards all those people who have been inspirational and instrumental in drafting this project. I would like to express my heartfelt thanks to Mr. Parag Mehta (Member of Ahmedabad Bonsai Club) for his unstinted support, which he offered right from the conception to the completion of this project report. I would also like to thank Prof. Sameer Pingle for his valuable suggestions and their time. I would finally like to thank Prof. Satish Nair for helping me out in the project and also for giving me suggestions wherever I was going wrong.
BUSINESS PLAN
Table of contents
SR. NO.
1 2 2.1 2.2 2.3 3 3.1 3.2 3.3 3.4 4 5 5.1 5.2 5.2.1 5.2.2 5.2.3 5.2.4 5.3 5.4 6 6.1 6.2 6.3 7 7.1 7.2 8 8.1
PAGE NO. 5 6 7 8 9 10 11 13 14 15 16 17 18 19 20 22 24 24 25 26 27 29 30 32 34 35 36 37 38
INDUSTRY OVERVIEW
Description of Primary Industry Design Industry in India Retail Industry in India Life style and service industry in India
COMPETITIVE ANALYSIS
SWOT Product life cycle Poter's 5 forces
MANAGEMENT TEAM
Management & Ownership Partner Network
ORGANISATIONAL STRUCTURE
Organisational Structure
BUSINESS PLAN
9 9.1 9.2 9.3 9.4 10 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 11 11.1 12
OPERATIONAL PLAN
Cultivation of Bonsai Trees Techniques to grow Bonsai Trees Taking Care of Bonsai Trees Requirements of Bonsai Trees
FINANCIAL PLAN
Assumptions Cost of Project Revenue Chart Expanses Cash Flow Profit & Loss Account Balance Sheet IRR Calculations Interest Calculations Depreciation Calculations
EXIT STRATEGY
Exit Strategy
Bibliography
40 41 42 46 48 50 51 53 54 56 57 58 59 60 61 62 64 65 66
BUSINESS PLAN
Executive Summary
My idea is to open a bonsai nursery called Vkalp. A bonsai tree is an ornamental plant. Most of the nurseries present in and near Ahmedabad focus mainly on selling their plants. Vkalp would go a step ahead in not just selling the plant but also educating them as to how to grow bonsai? How to maintain these bonsai trees {this is a very critical issue as most of the people cannot maintain these trees and these trees terminates their beauty}? Vkalp also intends in giving short term certified courses in Bonsai culture. This would bring awareness in the mind of people regarding Bonsai trees. Growing Bonsai trees is basically an art so Vkalp also intends in organizing competitions to promote the Bonsai culture. Bonsai (pronounced bone-sigh) is an ancient oriental horticultural art form. The word Bonsai literally means, in both Chinese and in the Japanese language, tree-in- a-pot. Contrary to popular belief, bonsai is not the art of stunting a tree's growth. The characters for "bonsai" translate, roughly, to "pot" and "to plant." As such, bonsai is the art of growing trees in a confined space (usually a pot or a tray); so as to recreate some of natures most stunning and beautiful effects on trees, which are reduced in scale. Originally developed in the Orient almost 2000 years ago, today the sublime art of bonsai is practiced throughout the world. A tree planted in a small pot is not a bonsai until it has been pruned, shaped, and trained into the desired shape. When undertaking bonsai, you may find a new sense of appreciation for nature; you may start looking at trees, bushes and shrubs differently. Bonsai will surely change the way that you look at things.
BUSINESS PLAN
BUSINESS PLAN
Mission statement
To provide information to our customers so they can make informed, environmentally sound decisions about their landscape project.
Vision Statement
The Vkalp is a highly respected, ethical nursery. We are clearly structured and organized to promote success of our team members in an atmosphere that highly regards and encourages the sale and use of plant material to strengthen, rebuild, maintain and support our ecology and economy. Our most successful tool is knowledge of our product and how to help our customers use it successfully. We have a synergistic relationship with suppliers and customers.
BUSINESS PLAN
Idea
My idea is to open a nursery cum retail outlet catering to ornamental plants especially concentrating on Bonsai. The scope of the idea is not just limited to selling the plant but also to provide services related to it.
Offering / product
BUSINESS PLAN 8
January 7, 2009 [VKALP BONSAI NURSERY] The offering would broadly include the following 4 categories. Bonsai (for sale) These Bonsai trees would be available to the customers for
sale. Bonsai (rent) These Bonsai trees would be strictly available only for rent to the
corporate. Samplings (assorted) These samplings would be sold in the initial stage only;
just as in nurseries.
Courses in Bonsai culture These courses would be given to those customers and people who are interested in understanding and managing Bonsai trees.
BUSINESS PLAN
BUSINESS PLAN
10
BUSINESS PLAN
11
Commodity
Production (Million tons) 2001-02 2006-07 59.36 115.52 5 18 1.5 6 205.38 2011-12 81 185 5.5 20 1.7 6.8 300
BUSINESS PLAN
12
A few states such as Maharashtra, Andhra Pradesh, Uttar Pradesh, Punjab and Orissa, are self sufficient in production and distribution of planting material in some of the crops. Other states like Gujarat have to outsource their plantings to private and public nurseries. Total nurseries Public Sector Private sector : 6339 : 1594 : 4607
Top 5 states in Private Domain Maharashtra Andhra Pradesh Himachal Pradesh Jammu Kashmir Gujarat : 1300 : 970 : 684 : 384 : 335
So we can see that there is a huge demand for nurseries in Gujarat. And the horticulture industry is also growing at a continuous rate. In this industry the demand is much higher than the supply so there are many gaps which can be fulfilled. My aim is to open a nursery concentrating only on Bonsai and thus capitalizing on this opportunity.
BUSINESS PLAN
13
BUSINESS PLAN
14
January 7, 2009 [VKALP BONSAI NURSERY] experience. With the merchandising formats becoming more horizontal and retailers offering variety and choices, consumers are getting confused day by day. Necessity is no more the mother of invention it has move far from its conventional meaning to its new form, with the universal nature of products and services and in the shopping area, exclusivity would find more value than sheep mentality. Shopping is not only service provider to the consumer, but also retaining social, cultural and ethical values that restore a nation, its well being in terms of heritage and culture and contributes to cleaner and healthier environment.
BUSINESS PLAN
15
January 7, 2009 [VKALP BONSAI NURSERY] loans and higher earnings are some of the pivotal reasons behind the sudden jump in Indian real estate. Flying high on the wings of booming real estate, property in India has become a dream for every potential investor looking forward to dig profits. All are eyeing Indian property market for a wide variety of reasons. Its ever growing economy which is on a continuous rise with 8.1 percent increase witnessed in the last financial year. The boom in economy increases purchasing power of its people and creates demand for real estate sector. India is going to produce an estimated 2 million new graduates from various Indian universities during this year, creating demand for 100 million square feet of office and industrial space. Presence of a large number of Fortune 500 and other reputed companies will attract more companies to initiate their operational bases in India thus creating more demand for corporate space. Real estate investments in India yield huge dividends. 70 percent of foreign investors in India are making profits and another 12 percent are breaking even. Apart from IT, ITES and Business Process Outsourcing (BPO) India has shown its expertise in sectors like auto-components, chemicals, apparels, pharmaceuticals and jewellery where it can match the best in the world. These positive attributes of India is definitely going to attract more foreign investors in the near future.
January 7, 2009 [VKALP BONSAI NURSERY] As the overall disposable income of population in India is increasing the growth of lifestyle industry is also increasing as people tend to spend more on life style products. On the other hand service industry is considered as the most potential industry to grow at the highest pace till 2012. The company would offer various services like garden designing and maintained which is the service which would be catered to high level customers.
Target customers
The target customers for the different products would be different.
Bonsai (for sale) The targeted customers for this segment would be majorly
high end customers because it would be a costly product and would also be considered as a status symbol. To reach these customers I would take help of other nurseries and retail outlet of plants which have a direct access to the customers. These nurseries and flower shops would also be my customers. Moreover decorators and other retail outlets keeping decorative items would also be my customers.
Bonsai (for rent) These Bonsai trees would be given on rent only to corporate
and also to parties and events. So here my customers would be big corporate and also event management committees. I would rent by product to them so more the events more my product would be rented.
Courses in Bonsai culture This would cater to mainly those people who
are really interested in understanding Bonsai and want to take up it as a hobby. Here my targeted customers would be only high end customers so they would be belonging to the upper class and upper middle class.
BUSINESS PLAN
17
Overall I intend to target the upper class and upper middle class. My product would be a status symbol so I dont want it to get diluted by selling it to the lower sections of the society.
BUSINESS PLAN
18
BUSINESS PLAN
19
Bonsai Nursery
The strategic development of the Marketing Communication (MC) plan generally goes through two phases: The first phase is determining which MC functions and which media to use The second, which is more creatively challenging, is the phase where ideas would be created for how each MC function and medium will be used. Various MC functions and their mix called the Marketing Communication Mix would be used to achieve the above stated MC objectives. A Marketing Communication Mix is the selection of MC functions used at a given time as part of Marketing Program. The Marketing Communication Mix for Vkalp Bonsai Nursery would include: Advertising Word of Mouth Publicity
BUSINESS PLAN
20
ADVERTISING
BUSINESS PLAN
21
Advertisements in Magazines:
Two different advertisements each 3column X 5 Cm long in Magazines of Ahmedabad, Rajkot, Bhavnagar, Baroda as also either of Times of India or Business Standard would be required to make people aware of the establishment of Vkalp Bonsai Nursery. One would be to invite the target audience to apply for the membership and the other would be for attracting people to have educate the people about the Bonsai Culture. This advertisement would be floated on Friday, Saturday and Sunday editorials of magazines like Today, Sputnik, Stardust and many more relevant magazines which would reach to the targeted audience. These magazines would also attract corporate to place orders.
BUSINESS PLAN
22
Bonsai (pronounced bone-sigh) is an ancient oriental horticultural art form. As such, bonsai is the art of growing trees in a confined space (usually a pot or a tray), so as to recreate some of natures most stunning and beautiful effects on trees, which are reduced in scale. A tree planted in a small pot is not a bonsai until it has been pruned, shaped, and trained into the desired shape. Bonsai will surely change the way that you look at things.
WE WOULD PROVIDE YOU WITH THE BEST OF THE BONSAI. IT IS UPTO YOU HOW YOU GROW THEM AND MAKE THEM OUR PRODUCT.
Advertisement featuring to invite the target audience to apply for the membership of Vkalp Bonsai Nursery:
OPENING SHORTLY
Bonsai (pronounced bone-sigh) is an ancient oriental horticultural art form. As such, bonsai is the art of growing trees in a confined space (usually a pot or a tray), so as to recreate some of natures most stunning and beautiful effects on trees, which are reduced in scale. A tree planted in a small pot is not a bonsai until it has been pruned, shaped, and trained into the desired shape. Bonsai will surely change the way that you look at things.
WE OFFER YOU WITH FREE MEMBERSHIP WITH EVERY PURCHASE OF BONSAI AND A LIFETIME MEMBERSHIP ON PURCHASE OF 3 BONSAI TREES
BUSINESS PLAN
23
BUSINESS PLAN
24
WELCOME TO Vkalp Bonsai Nursery A Nursery Specializing in your needs FOR WE ARE HERE TO MAKE YOUR EACH MOMENT A MEMORY
Offering / product
The offering would broadly include the following 4 categories. Bonsai (for sale) Bonsai (rent) Samplings (assorted)
WE HAVE MORE THAN 100 BONSAI TREES TO CHOOSE FROM. JUST ROLL OVER TO EXPLORE EACH OF THEM
Address:
BUSINESS PLAN
25
BUSINESS PLAN
26
BUSINESS PLAN
27
PUBLICITY FOR
BUSINESS PLAN
28
BUSINESS PLAN
29
Competitive analysis
Competition
Bonsai trees only. There is an Ahmedabad Bonsai Club running in Ahmedabad but its objectives are very different, they are running it only as a hobby. My objective is to create a culture of Bonsai trees.
Saplings ( assorted ) Here there is huge competitions as there are many Courses in Bonsai culture - There is as such no competition as no player
Competitive advantage
I would like to create a competitive edge over my competitors by creating a Brand name for my Bonsai trees and also by making aware of the product I would like to create a culture for such ornamental plants. I would also target my bonsai trees as a status symbol. I would also keep a customer database which would help me increase my sale by increasing the number of purchases per customer. My main competitive advantage would be creating a retail format. No other player has thought of going into a retail format. The existing players operate in a very conventional and traditional way; I would have a completely different view towards the nursery. My main aim would be customer satisfaction and create a culture for Bonsai trees not just by selling them but also educating the customers on how to maintain them.
SWOT ANALYSIS
BUSINESS PLAN 30
Strengths:
Varied Agro-climatic conditions Available surplus in Spices, Kharif Onion, Pea and Cucurbits. Strong cooperative credit and marketing structure High productivity for plants.
Weakness:
Poor irrigation facilities Erratic monsoon Shallow and undulating land and with low fertility
Opportunities:
Scope for Area expansion in fruit crop Potential to increase production and export of Banana , Mango, Potato, Cumin , Fennel and Isubgul Sradar Sarovar project will provide irrigation facilities for additional 17.90 lakh ha. Good potential for cultivation of medicinal and aromatic plants Investment in green house , floriculture projects , tissue culture units , fruits & vegetable processing units
Threats:
Drought prone Prone to cyclone and locust Depletion of water table Deterioration of soil and water
BUSINESS PLAN
31
Development:
For the 1st 2 years I would be growing Bonsai trees and so I would not be selling the plants. This would be in the development stage where I would be developing and growing the bonsai.
Introduction:
In the introduction stage I would be introducing the Bonsai trees in the market. In this stage I would be incurring a lot of marketing expense as this product is very new to the market. So to make aware the customers I would have to work too much for the market penetration.
This would be the stage when I would capitalize on all the fixed cost I would be incurring. I would try to stretch this stage as much as possible. This stage is the time when I would gain my maximum revenue. Once I would start making profit I would attract competition.
Maturity:
This would be the stage where many players would enter the market and competition would increase. I intend to diversify into other field of miniature during this stage. I would concentrate on other business and keep this business as a secondary source of income.
Decline:
In this stage I would close down this business and the other business which I have diversified I would concentrate on it.
BUSINESS PLAN
33
BUSINESS PLAN
34
January 7, 2009 [VKALP BONSAI NURSERY] Here the suppliers do not have any bargaining power with them because the basic raw material needed that is the saplings and the seeds are available very easily and their price can be bargained down as there are many suppliers in the market.
BUSINESS PLAN
35
BUSINESS PLAN
36
Here I would be putting a total of 22 lacs as my own equity. I would be taking a soft loan of 20 lacs from Central Bank of India at a nominal rate of 7.5%p.a. (under the National Horticultural board). I would also get a subsidy of approximately 6 lacs for the drip system and also the green house.
BUSINESS PLAN
37
Partner Network
My partner network would include the following partners: A Bonsai Specialist that would help me to gain important know-how on how to grow Bonsai and also on how to maintain them. An agricultural specialist who would assist the local semi-skilled workers in growing the Bonsai trees. Central bank of India (Bank) which would provide us with the necessary finance needed to fund our project.
These partners would not be contributing any capital towards the capital structure. They would be hired on pay basis. They would be paid salary for their proprietary knowledge. The reason why they would not be contributing any capital is that I want the complete hold of the business in my hand. Moreover in future if I am not satisfied with their contribution towards the business I can easily change them and keep new advisors. This would give me enough flexibility to run my business. Moreover I can even hire the best advisors in the town for my business. This decision is taken keeping in mind the future growth of the business, if in future the business expands I can hire advisors from China or Japan.
BUSINESS PLAN
38
BUSINESS PLAN
39
Organizational structure
The industry to which my business is related to is currently a new concept and has very limited players involved in it so the critical factor for the organizations will be to have the structure which complements the business in long run and have a sustainable competitive advantage.
For the start of any new business or industry the organizations are having sole proprietor ownership, same is the case in my business. As the company is in the seed stage of its business life cycle it would be having sole ownership under the owner there would two specialists one would be bonsai specialist and another would be agriculture
BUSINESS PLAN
40
January 7, 2009 [VKALP BONSAI NURSERY] specialist. This two specialist would be guide the production department for getting the right quality of product the production department would be having 7 another subordinates who would do the production work.
The marketing department would have several different activites which are as follows.
plants.
Developing the retail market. Developing the corporate relationship chain through the communicators. Searching for the new markets. Developing a network through which the company would rent the bonsai
Moving forward the finance department would have a chartered accountant and a cash manger that would do the payment collection and accountancy work.
BUSINESS PLAN
41
BUSINESS PLAN
42
Bonsai are not necessarily genetically dwarfed plants. They can be created from nearly any perennial woody-stemmed tree or shrub species which produces true branches and remains small through pot confinement with crown and root pruning. Some species are more sought after for use as bonsai material, because they have characteristics, such as small leaves or needles that make them appropriate for the smaller design scope of bonsai. The purposes of bonsai are primarily contemplation (for the viewer) and the pleasant exercise of effort and ingenuity (for the grower). By contrast with other plant-related practices, bonsai is not intended for production of food (although some fruit trees can be used as bonsai bearing limited amounts of seasonal fruit), for medicine (although some woody herbs can be made into bonsai), or for creating yard-sized or park-sized landscapes. As a result, the scope of bonsai practice is narrow and focused on the successful long-term cultivation and shaping of one or more small trees in a single pot.
BUSINESS PLAN
43
Leaf trimming
This technique involves the selective removal of leaves (for most varieties of deciduous tree) or needles (for coniferous trees and some others) from a bonsai's trunk and branches. A common esthetic technique in bonsai design is to expose the tree's branches below groups of leaves or needles (sometimes called "pads"). In many species, particularly coniferous ones, this means that leaves or needles projecting below their branches must be trimmed off. For some coniferous varieties, such as spruce, branches carry needles from the trunk to the tip and many of these needles may be trimmed to expose the branch shape and bark. Needle and bud trimming can also be used in coniferous trees to force back-budding or budding on old wood, which may not occur naturally in many conifers. Along with pruning, leaf trimming is the most common
BUSINESS PLAN
44
January 7, 2009 [VKALP BONSAI NURSERY] activity used for bonsai development and maintenance, and the one that occurs most frequently during the year.
Pruning
The small size of the tree and some dwarfing of foliage result from pruning the trunk, branches, and roots. Improper pruning can weaken or kill trees. Careful pruning throughout the tree's life is necessary, however, to maintain a bonsai's basic design, which can otherwise disappear behind the uncontrolled natural growth of branches and leaves.
Wiring
Wrapping copper or aluminum wire around branches and trunks allows the bonsai designer to create the desired general form and make detailed branch and leaf placements. When wire is used on new branches or shoots, it holds the branches in place until they lignify (convert into wood), usually 6-9 months or one growing season. Wires are also used to connect a branch to another object (e.g., another branch, the pot itself) so that tightening the wire applies force to the branch. Some species do not lignify strongly, and some specimens' branches are too stiff or brittle to be bent easily. These cases are not conducive to wiring, and shaping them is accomplished primarily through pruning.
Clamping
For larger specimens, or species with stiffer wood, bonsai artists also use mechanical devices for shaping trunks and branches. The most common are screw-based clamps, which can straighten or bend a part of the bonsai using much greater force than wiring can supply. To
BUSINESS PLAN
45
January 7, 2009 [VKALP BONSAI NURSERY] prevent damage to the tree, the clamps are tightened a little at a time and make their changes over a period of months or years.
Grafting
In this technique, new growing material (typically a bud, branch, or root) is introduced to a prepared area on the trunk or under the bark of the tree. There are two major purposes for grafting in bonsai. First, a number of favorite species do not thrive as bonsai on their natural root stock and their trunks are often grafted onto hardier root stock. Examples include Japanese red maple and Japanese Black pine. Second, grafting allows the bonsai artist to add branches (and sometimes roots) where they are needed to improve or complete a bonsai design. There are many applicable Grafting techniques, none unique to bonsai, including branch grafting, bud grafting, thread grafting, and others.
Defoliation
Short-term dwarfing of foliage can be accomplished in certain deciduous bonsai by partial or total defoliation of the plant partway through the growing season. Not all species can survive this technique. In defoliating a healthy tree of a suitable species, most or all of the leaves are removed by clipping partway along each leaf's petiole (the thin stem that connects a leaf to its branch). Petioles later dry up and drop off, or are manually removed once dry. The tree responds by producing a fresh crop of leaves. The new leaves are generally much smaller than those from the first crop, sometimes as small as half the length and width. If the bonsai is shown at this time, the smaller leaves contribute greatly to the bonsai esthetic of dwarfing. It should be noted that this change in leaf size is usually not permanent, and the leaves of the following spring will often be the normal size. Defoliation weakens the tree and should not be performed in two consecutive years.
BUSINESS PLAN
46
Deadwood
Bonsai growers use deadwood bonsai techniques called Jin and Shari to simulate age and maturity in a bonsai. Jin is the term used when the bark from an entire branch is removed to create the impression of a snag of deadwood. Shari denotes stripping bark from areas of the trunk to simulate natural scarring from a broken limb or lightning strike. In addition to stripping bark, this technique may also involve the use of tools to scar the deadwood or to raise its grain, and the application of chemicals (usually lime sulfur) to bleach and preserve the exposed deadwood.
BUSINESS PLAN
47
Repotting
Bonsai are repotted and root-pruned at intervals dictated by the vigor and age of each tree. In the case of deciduous trees, this is done as the tree is leaving its dormant period, generally around springtime. Bonsai are often repotted while in development, and less often as they become more
BUSINESS PLAN
48
January 7, 2009 [VKALP BONSAI NURSERY] mature. This prevents them from becoming pot-bound and encourages the growth of new feeder roots, allowing the tree to absorb moisture more efficiently. Pre-bonsai material known as potensai, are often placed in "growing boxes" which are made from scraps of fence board or wood slats. These large boxes allow the roots to grow more freely and increase the vigor of the tree. The second stage, after using a grow box, has been to replant the tree in a "training box;" this is often smaller and helps to create a smaller dense root mass which can be more easily moved into a final presentation pot.
BUSINESS PLAN
49
Tools
Set of bonsai tools (left to right): leaf trimmer; rake with spatula; root hook; coir brush; concave cutter; knob cutter; wire cutter; small, medium and large shears. Special tools are available for the maintenance of bonsai. The most common tool is the concave cutter (5th from left in picture), a tool designed to prune flush, without leaving a stub. Other tools include branch bending jacks, wire pliers and shears of different proportions for performing detail and rough shaping.
Opinions about soil mixes and fertilization vary widely among practitioners. Some promote the use of organic fertilizers to augment an essentially inorganic soil mix, while others will use
BUSINESS PLAN
50
January 7, 2009 [VKALP BONSAI NURSERY] chemical fertilizers freely. Most use the general rule of little and often due to the flushing effect when watering, taking care to use the correct fertilizer at any given time in each season, depending on the tree's requirements. Bonsai soil is primarily a loose, fast-draining mix of components, often a base mixture of coarse sand or gravel, fired clay pellets or expanded shale combined with an organic component such as peat or bark.
Containers
Containers come in a variety of shapes and colors, and may be glazed or unglazed. Containers with straight sides and sharp corners are generally better suited to formally presented plants, while oval or round containers might be used for plants with informal shapes. Most evergreen bonsai are placed in unglazed pots, while deciduous trees are planted in glazed pots. The color of the pot should complement the tree, and many formal and informal rules guide the selection of pot finish and color for a particular tree. Pots are also distinguished by their size. The design of the bonsai tree, the thickness of its trunk, and its height can all be considered when determining the size of a suitable pot.
BUSINESS PLAN
51
BUSINESS PLAN
52
Assumptions
Interest rates long term short term Average price per plant (INR) Bonsai - for sale Bonsai - for rentals Saplings - assorted Depreciation land Building Drip sysytem Shade Equipment Vehicles Cost of Capital Risk free rate Market premium Beta Cost of Equity Cost of Debt Proportion of Equity Proportion of Debt WACC 9% 13% 1 22% 7.50% 30 20 16.20% 2000 200 45 SLM RATES 0% 10% 20% 20% 50% 15% 7.50% 18.00%
BUSINESS PLAN
53
Working Capital Stock in progress Finished goods Projected sales (1st yr) Bonsai - for sale Bonsai - for rentals Saplings - assorted Cost (per yr.)(per yard) Seeds Fertilizers Chemicals Labour Cost (per year)(in lacs) Bonsai Specialist Agriculture Specialst Helpers (3) Accountant Chartered Accountant Total Tax Rate 1.2 0.5 0.5 0.1 0.1 2.4 35% 2500 15000 25000 0% 0% 35% 180 days 60 days
BUSINESS PLAN
54
PARTICULARS
Land (2 acres) Building (utility building) Drip system Shade (Green house) Working Capital Equipments and transport facility Cash loss (expected for 2 years) Water reservoir Contigency Total Expenses
Contribution (lacs)
50 Lacs
BUSINESS PLAN
55
Revenue Chart
Particulars Land (acres) Sq yds per acre Land (sq yds) Less: Common space allocation Land available for saplings No. of saplings per sq yd Total no. of saplings Production mix (%) Bonsai - for sale Bonsai - for rentals Saplings - assorted Plants Bonsai - for sale Bonsai - for rentals Saplings - assorted 200809 2 4048 8096 30% 5667.2 3 17001 200910 2 4048 8096 30% 5667.2 3 17001 201011 3 4048 12144 30% 8500.8 3 25502 201112 4 4048 16192 30% 11334.4 3 34003 201213 5 4048 20240 30% 14168 3 42504 2013-14 5 4048 20240 30% 14168 3 42504
20% 5% 75%
20% 5% 75%
20% 5% 75%
20% 5% 75%
20% 5% 75%
20% 5% 75%
Plants for sale Bonsai - for sale Bonsai - for rentals Saplings - assorted
0% 0% 35%
0% 0% 45%
Plants for sale Bonsai - for sale Bonsai - for rentals Saplings - assorted
0 0 4462
0 0 5737
BUSINESS PLAN
56
2000 150 45
2000 150 45
2000 200 45
2500 200 45
2500 250 45
2500 250 45
Revenue of sale Bonsai - for sale Bonsai - for rentals Saplings - assorted
0 0 200790
0 0 258165
20079 0 2.01
25816 5 2.5816 5
25213 35 25.21
50405 45 50.41
86354 00 86.35
987588 0 98.76
BUSINESS PLAN
57
Expenses
Particulars Cost of production (A) Seeds Fertilizers Chemicals Electricity cost Total
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
Administration &selling expense (B) Labour Cost Marketing cost Depreciation Total Financing Expense (C ) Interest Total Dividend Total expense
BUSINESS PLAN
58
Cash Flow
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
24 20 6 2.01
5 0 0 2.58
0 0 0 25.21
0 0 0 50.41
0 0 0 86.35
0 0 0 98.76
Total Application Land Building Water reservoir Drip system Shade Equipments and transport facility Interest Installment Seeds Fertilizers Chemicals Electricity cost Labour Cost Marketing cost Dividend
52.01
7.58
25.21
50.41
86.35
98.76
Total
51.95
5.19
15.75
47.09
27.46
34.34
0 0.06 0.06
Particulars Total Revenue Total Expense (A+B) PBIT less: Interest (C ) PBT less accumulated loss Less: Tax (35%) PAT Less: Dividend B/S Retained earing IRR Retained earnings
(in lacs) 2008-09 2.01 12.60 -10.59 1.50 -12.09 -12.09 0 -12.09 0 -12.09
2010-2011 25.21 13.63 11.58 1.28 10.31 -13.54 0.00 10.31 0 -13.54
2011-12 50.41 15.44 34.96 1.05 33.91 20.37 7.13 26.78 8.75 4.49
2012-13 86.35 16.29 70.07 0.83 69.24 89.61 31.36 37.88 10.5 31.87
2013-14 98.76 16.64 82.12 0.60 81.52 171.13 59.90 21.62 12.25 41.24
-12.09
-11.76
10.31
18.03
27.38
9.37
BUSINESS PLAN
60
Balance Sheet
2008-09 30 20 -12.09 0
2009-10 35 20 -23.85 0
2010-11 35 17 -13.54 0
Total
37.91
31.15
38.46
62.24
88.37
96.49
Total
37.91
31.15
38.46
58.62
112.36
176.63
BUSINESS PLAN
61
Irr Calculations
2009-10 5
2010-11 0
2011-12 0
2012-13 0
2013-14 0
0 0.00 -5
0 10.31 10.31
BUSINESS PLAN
62
Interest Calculations
Loan in beginning 20 20 20 17 14 11 8 Loan at End of yr. 0 0 3 3 3 3 3 20 20 17 14 11 8 5
Installment
BUSINESS PLAN
63
Depreciation Calculations
Building (lacs) 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Value At Beginning 3 2.7 2.4 2.1 1.8 1.5 Depreciation 0.3 0.3 0.3 0.3 0.3 0.3 Value At End 2.7 2.4 2.1 1.8 1.5 1.2
Value At Beginning 5 4 3 2 1 5
Depreciation 1 1 1 1 1 1
Value At End 4 3 2 1 0 4
Value At Beginning 2 1 2 1 2 1
Depreciation 1 1 1 1 1 1
Value At End 1 0 1 0 1 0
BUSINESS PLAN
64
BUSINESS PLAN
65
BUSINESS PLAN
66
Exit strategy
If the project fails
If the project fails then whatever investment I have done in the fixed assets of the project would be recovered by selling the land and the utility vehicles and would thus recover my investment in the project. The rate at which the price of land is rising in that area would any how fetch me a higher price than that of the current price. The price which would be available after 3 years would not only recover my investment in the land but would save me of the complete investment. Thus these are my plans if the project fails. I would then venture into some other field keeping into mind whatever mistake I would have made in this project.
BUSINESS PLAN
67
Bibliography
ISI emerging markets EBSCO Business source complete EMRALD management extract CMIE Indiastats.com Google.co.in Research publications
BUSINESS PLAN
68