Business Plan Company Name: Style My Space. Company slogan: ‘Design Your Way’. Date: Contents 1. Executive Summary 3 2. Business details and key personnel 4 3. Business objectives 5 4. Market potential 6 4.1 The macro environment 6 4.2 The competitive environment 7 4.3 Target customer(s) 8 4.4 Market potential analysis 9 5. The business strategy 10 5.1 The Unique Selling Proposition 10 5.2 The marketing mix 10 5.3 Key stakeholders (including suppliers) 11 6. Business operations 12 6.1 Physical resource requirements 12 6.2 Human resource requirements 12 7. The financials 13 7.1 Start-up costs 13 7.2 Sales forecast 14 7.3 Cash flow forecast 15 7.4 Break-even analysis and profit forecast ……………………………………………………………………………………………………………………………………………………………………………….……….17 7.5 Financial investment required and source(s) of finance 18 • Executive Summary COMPANY SUMMARY: Style my space is a start-up business that will offer comprehensive interior design services for home, office, restaurants etc. This business will assist those that want to have guidance and council in developing a basic design concept of their project, to the person that desires someone to take it from concept to complete implementation. Style my space will offer the ability for clients to purchase new antique furniture, art work, decorator fabric and home accessories. The website for Style my space company will be www.stylemyspace.com that will be used as another way to communicate the services available and provide the portfolio of work accomplished.
The business begins as a home-based business and is expected to remain in this structure through at least first three years. COMPANY OWNERSHIP: Style my space is a sole proprietorship business owned and operated by Naila Abdullatif Abdallah. The main aim is to provide special services to customers and help design their homes, offices and restaurants. COMPANY LOCATION & FACILITIES: Style my space will be operated from a home office located in Kariakoo, Amani Sikukuu Street.
It is found opposite Al-Karim Restaurant. An office is dedicated to support work area, a client contact work centre, and display samples of design concepts, products and past work. KEYS TO SUCCESS: The primary keys to success for Style my space will be based on the following factors: -Provide the highest quality interior design consulting experience possible. -Sell specially selected products to these clients to further meet their interior design needs. -Communicate with our client base through the website and personalized communication techniques. -Retain clients to generate repeat purchases and initiate referrals.
MISSION: Style my space is an interior design service for discerning, quality-conscious clients that seek assistance in their design choices for their primary residences, vacation homes and businesses. This experience offers personal attention through the design process and also provides design resources and products to its clients through special purchases of furniture, fabric and accessories. The total experience is provided in a way to inform, inspire, assist people through the process of transforming their home or business environment to become a unique and personalized expression of themselves and add to their enjoyment of the interior space. OBJECTIVES: – Exceed customer’s expectations for service and product.
-Increase the number of clients served by 15% per year through superior performance -Develop a sustainable start-up business that is profitable. SERVICES: – Style my space company will offer a wide range of interior design services to meet any client’s needs in Dar-es-salaam Consultations: The consultation will include all necessary product samples for client’s review, thus eliminating the hassle of having to visit numerous stores for different products. Project survey analysis: This will require all clients’ necessary projects that are inspected in its layout and function. Design concepts: The motive is that all designs should be unique in selection. To make sure each project develops its own flavor from the unique selection of fabrics, furniture and finishes.
Finishes and furnishing: There are many factors to consider when selecting furniture and finishes. Style my space makes the best creativity selection process to create the desired look. Coordination & management: To make sure all the projects are in coordination and manage with the completion with time. FINANCIAL SUMMARY: • The project net profit is THz 10,270,000 and the budgeted profit margin is approximately -11.73%. • Style My Space shall have an inventory of two months approximately THz 3,000,000 and THz 3,600,000.
• They intend to gain a three times more sales for the second financial year. • The initial funding of THz 500,000 will be invested by the owner. The goal is to fund the growth of the business from its earnings. • They aim to continue to fund the growth of the business from the revenues it generates. • Business details and key personnel My business idea is to provide special services to customers, as I am planning to open a business on “Interior designing”. My aim is to give my customers idea on how to design their homes, interior buildings, restaurants, office and etc.
I want to satisfy my customers with all the best facilities and give them the best interior look-out that is why I will name my business “STYLE MY SPACE”. I would like start my business as a sole trader as I can manage the business alone, since I provide only services. The objectives are to get prospect at the time of decision-making and create more awareness of the brand by getting it mentioned in Ad’s and social networks. My name is Naila Abdullatif.
I am an ABE business management student. As mentioned above, the business of Style my Space is only providing services to customers and giving them ideas on how to make their area look different in the Interior world. My company slogan is ‘Design your way’. My qualifications are that I’m certified by the ABE LEVEL 3. I don’t have any previous work experience but I have good communication skills as well as I am creative and a good designer. The only confidence I have about my interior being different from others is that one of my family member was also an interior designer and has approved my designs and style being unique so this brought me interest in the interior designing business.
My hobbies are communicating with different people and visiting new places this also suggests me and gives me new Ideas on how I can design and be unique. As the business expands I’m planning to also sell products like furniture and hardware so this gives my business profits and also employee two people to assist me in my business. Ill also make a page on social networks to raise awareness and open my own business websites. Company name: Style My Space Company slogan: ‘Design your way’ Business Address: Kariakoo Amani Sikukuu Street Opposite Al-Karim Restaurant House no.30 flat no.4 P.O.BOX 22026 Telephone: 0655080199/0754080199 Website: www.Stylemyspace.com Social media: https/:www.facebook.com/@stylemyspace Legal status: -The business style my space will be run as a sole proprietorship business, simply owned by Naila Abdallah. Owner: Miss. NAILA ABDALLAH.
-The business will be owned and managed by Miss. NAILA ABDALLAH (myself) where few people will work under me as employees. Well it can be handled by me because I feel I have good communication skills and can handle my customers by myself. I feel I’m quite creative that’s why I preferred to choose myself to be an interior designer. • Business objectives All businesses should know what their objectives are and how they will make their business a success.
Coming to Style my space company, we have also decided to some company objectives. For instance: FINANCIAL OBJECTIVES: -Increase our profits by 7% each year. -Achieve a customer satisfaction rate of 92%. -Expand product range to attract young professionals moving into the area. – Secure funding for expansion of interior area. -Provide customer service training and coaching opportunities for staff.
-To increase awareness of pressing social, economic and environmental concerns through the research and understanding of human factors, universal design solution and sustainable buildings and materials for finish for the design. NON-FINANCIAL OBJECTIVES: – To achieve 5% year-on-year growth in profit after tax after the next five years. – To effectively reduce operating costs by a total of 20% over the next 5 years. – In the same time period to achieve growth in the profit after tax by 8% after each year.
• Reducing sales and holding costs. 4.1 The macro environment • Market potential THE PESTEL ANALYSIS: POLITICAL FACTORS: -CCM is the current government ruling party. -yes, the party is going to change within some few years. -Government economy policy is asking the interior designers in a wide array of designing space types such as offices, hospitals and educational spaces.
-The regulation is about the restrictions faced on regional, local and national are based on the cultural contents or traits of their societies. -Trade reforms have abolished that the interior design profession will be restricted to services that are not regulated by the code eliminating many markets that the interior design share with the architects. ECONOMIC FACTORS: -The current economy is growing. -The inflation rate is 5.5, and its rising. -The current interest rate is 12% and it’s falling. -The unemployment rate is 10.30 and it has decreased.
-Yes, Tanzania has sufficient skilled labor. -Consumer current level of disposable income is 1985TSH and it’s falling day to day. SOCIAL FACTORS: -Age profile in our area is measured as median age of 17.5 yrs. -The population is growing by 2.77% as recorded last year. -The religious beliefs and lifestyle choices could bring people together.
-The population can be seen to inspire conflicts in the world. -The employment pattern of Tanzania is about a ratio of 57:43 as 57% of employees are male and the remaining 43% are female. -The general level of Tanzania have not been good in past years, as per the level of education getting in the country is gaining the people to live there life in a better way and people now prefer studying as their first priority. TECHNOLOGICAL FACTORS: -The emerging technologies are the Educational Technology, Information Technology and biotechnology. -As large economic rewards come from new inventions, a great deal of resources goes into the development and emerging technologies.
-Technology has taken over all the work as it makes everything simpler with the online support. -The government has also granted to the local public to encourage technologies advancements. ENVIRONMENTAL FACTORS: -The Climate in Dar-es-salaam Tanzania is 32c. -The climate changes with time.
-In recent years climate has changed as summer are getting hotter. -The climate also has impact on the nature. -Businesses are now finding alternatives for packing items because there is an appropriate usage of plastic bags. -These resources are benefit to the government as they are a source of earning of the country. LEGAL FACTORS: -The government focuses on basic and secondary schooling, power generation and electricity capacity and extending power supply. -As per government the above is not likely to change.
-Some legislative changes which are coming up in Tanzania are about banning the use of plastic bags as per human safety, banning the export of scrap materials, there is no current time given by when these changes may occur. -These legislative changes may help the general public to establish their life in a better way and try to make it go with the flow. 4.2 The competitive environment PORTER’S FIVE FORCES: THREAT OF NEW ENTRANTS: In Style my space market, the barriers to enter are not so high. The most important factors to enter this industry will be the quality of designers. It’s well known that interior designing requires architectonics and principles of creativity. New entrants are possible on the basis of customer requirements and their preferences.
In order to start an interior design business, it is necessary to attract and recruit professional designers who are good at both the subjects talked above. As so, the threats of new entrants may be under medium level. THREAT OF SUBSTITUTE PRODUCTS OR SERVICES: In Style my space market, threats of substitute products are very strong. There are numbers of substitute products available in the items of design part but the first preferences which are given to choice and quality. If both the things are available then there is no mean of getting into another company.
If only the company provides higher quality and perfect designs and services. Most of all, these companies will provide from designing to decorating services. Their designs and services can be threatening to Style my space market. BARGAINING POWER OF CUSTOMERS: In Style my space market, the bargaining power of customers is low. Because once the customers are provided with the satisfied products and services, they won’t bargain unnecessarily even if they are satisfied with the perfect designs.
BARGAINING POWER OF SUPPLIERS: As an interior design market, its major duty is to provide ideas of designs. It is selling designing proposals as products. Unless I’m buying furniture from suppliers, the suppliers will know that I am their regular customer so chances of getting bargained are very weak. COMPETITION RIVARLY: In Style my space market, the completion rivalry can be risky as different companies will have different designers and different designers will carry out different styles of designs. In fact there are many excellent designers with great talents in designing. It is obvious that this market may lack of brand awareness and financial capitals.
• Target customer(s) The business ‘style my space’ is going to be a small franchise where there’ll be 3-4 employees working under me. Well my plan is not to design for big companies and businesses. Only some normal individuals who want to design their homes, buildings, restaurants offices etc. Later as the business expands, we also intend to design for big companies. Normally businesses must look the below points such as: DEMOGRAPHIC: AGE: range of 30-50 with median age of 45.
GENDER: both male and female but mostly male. EDUCATION LEVEL: belong to one or more business service. OCCUPATION: architect or normal business man. INCOME: tsh100, 000 per each person.
SOCIAL CLASS: middle class and rich people. GEOGRAPHIC: URBAN/RURAL: URBAN CUSTOMER LOCATION: usually in town area REGION: Dar-es-salaam CLIMATE: warm temperature CHARACTERISTICS: BELIEFS: to satisfy customers with best design PERSONALITY TRAITS: the customers are smart and mostly all are architects. INTERESTS: developing new ideas with change of seasonality OPINIONS: taking ideas from customers if they are satisfied or not. ATTITUDES: taking pride in having an active role in decorating their home. PSYCHOGRAPHIC • The appearance of her home is a priority. • Entertaining and showing home is important.
• Reads one or more of the following magazines. • Seeks out information for home decorating that is more likely. BEHAVIOURS; -She takes pride in having an active role in decorating home. -Good communication. -Comparison positioning and stature within social groups.
4.4 Market potential analysis SWOT ANALYSIS: STRENGTHS: -The proven ability to establish excellent personalized client service. -Strong relationship with suppliers that offer flexibility and respond to special product. -High barriers to entry. -Experienced owner operator. -Ability to sell products online.
-Limited start-up costs. -Good communication skills with the stakeholders. -Well business management knowledge, as I am already an ABE student -Ability to provide products and services with reasonable discounts. -Good referral relationship with architects. WEAKNESSES: -I am still climbing the real experience of interior.
-Challenges of seasonality of business. -Limited start-up costs. -High transportation cost. -Limited flexibility pricing. -Competitors can offer same services quickly.
-I’ll be new to the business, so chances are less to be well known within some few months. OPPORTUNITIES: -A significant portion of target market is desperately looking for the services we offer. -Promising activity from new home construction activity. -Changes in design trends can initiate home updating and therefore generate sales. -Development of proprietary products.
-Ability to develop additional stores. -Clients come from foreign countries. -New buildings will recommend the interior designers. THREATS: -Changes in design, including fabric colors and styles can present challenges to keep paced with what is desired by what is expected to be loading edge.
-Expansion of products and services offered by other sources including national discount stores. -Insurance cost is continually increasing. -increase in price input can cause upward bringing. -Designs can be plagiarized quickly -High competition. -other clients don’t rely on the interior designers. • The business strategy 5.1 The Unique Selling Proposition It is likely that many businesses want to be unique in their own way and also have difficulty deciding which portion of your industry is the one that deserves that time, money and trust.
Basically, the business Style my Space is also facing the same situation as I am the owner and I plan to make my business unique in the market. As mentioned above in the personal details I am a student who is planning to open a business on interior design. How I want to make Style my space unique is that later as the business expands, I will plan to also sell furniture so this also brings profit in the business and customers won’t have difficulty on choosing different designs as I’ll assist them with the interior design by myself. Also I’ll increase awareness of pressing social, economic and environmental concerns through the research and understanding of human factors, universal design solutions and sustainable building materials and finishes for design.
5.2 The marketing mix PRODUCT: -Furniture available through special purchase arrangement. -A selection of decorator fabrics. -Accessory and art pieces available through wholesale. -Interior shutters made of wood and plastic/resin. -Antiques acquired for specific client needs through an arrangement with local antique buyer and through other sources.
-Access to wide and unique selection of new and antique furniture, accessories and special-order decorator fabrics. -A unique client experience from a trained and profession interior designer that is qualified and capable of meeting the needs of discerning clients with high expectations. -Requirement of wall paint, so our clients can even order us to paint for them. PRICING STRATEGY: -Style my space is a service providing business where there is reasonable pricing strategy for clients & customers.
-Style my space will always provide services with special products by not exceeding by 5-10%. -Coming to the pricing strategy, Style my space relies on the interior designing and how antique it is, it’ll only depend on how good the design is with a range of product quality and low-to-high prices. -The pricing will start from Tshs100000 onwards. -The motive is to make 15% profit each month and provide the products and service with high quality. -The premium price is not so high that it encourages competition that may undercut the price and reduce the exclusivity of the product.
PLACE: -Style my space will be located in Kariakoo Amani Sikukuu Street. -Because Kariakoo is a very busy area and since there are many constructions going on, many architects will approach interior designers so I feel Style my space should be one among those. -It is even easier and simpler to get to Kariakoo that is why I don’t find any other area for Style my space company. -Style my space also delivers products to clients and there will also be a vehicle transporting and supplying products and goods. PROMOTION: -Firstly I would choose word of mouth, as I’ll offer my clients rebates for repeat business and special discounts for referring their friends and family. Also videotape testimonials from satisfied clients, and post the unique interior design on YouTube.
-Secondly advertisement on TV, brochures, flyers and posters. -Lastly on social networks like Facebook, Instagram and Twitter and also create websites, links on YouTube and E-mail. PEOPLE: -There will be five employees working under me. Two will handle accounts, one will manage the office, the other one will assist me to several places I go for designing and one will handle the customers. -The owner and my personal advisor will be my Father Mr. Abdullatif Abdallah.
Who will advise me and tell me more about business. -The suppliers for Style my space will be from Kings Furniture as I have one of the family members working there, so I have good contact with the owner. -The people who will work for Style my space should be highly trained in customer service, have thorough knowledge of the product or service being sold, have the right attitude to meet customer’s expectation and be highly motivated. PROCESS: -Become more and more aware of the development as I am beginning to use it as an attachment to my contracts. As it is an important piece of the project and if it is not interpreted correctly, it will derail any good efforts. -Provide proper furniture’s, unique colors, different fabrics and best interior outlook.
-Our accomplished ability to understand, define and transform our clients aspirations and objectives, achieves an exclusive and personally tailored package without exception. -Customize our services to meet our client’s unique budget and design requirements. -Initial complimentary consultation we will determine what your vision is, and the scope of work. We will ask a set of detailed questions in order to establish a clear picture of your renovation or new build plans and goals. PHYSICAL EVIDENCE: -Knowledge of design techniques, tools and principles involved in production of precision technical plans, blueprints, drawings and models.
-Knowing the principles and processes for providing customer and personal services. This includes customer needs assessment, meeting quality standards for services and evaluation of customer satisfaction. -Materials, methods and the tools involved in the construction or repair of houses, buildings or other structures. LEGAL SRUCTURE: Style my space company is a sole proprietor business which is going to be launched on the Aug of 2017 this year. The owner of the business named Naila Abdallah, who is an ABE business management student. Has the following qualification for the business start-up: -The owner has good communication skills.
-Good business knowledge. -Has the ability to run the business on her own without facing any sort of management problems However, Style my space falls under the sole-trader business. The basic things about the business are that there is a lot of determination and endless supply of energy for the hard work ahead. Since this business needs a lot of general knowledge and creativity, as this business deals with interior designing. As mentioned minimal amount of paper work and red tape are associated with this type of business, as there will be no partnership for this business. As the owner has no partner, so she receives all the profit and losses reported directly on the individual income tax return.
Other thing the owner deals with is the: -Advertising for the business on the social networks and brochures. -Evaluates with the interior designs to make them more functional 5.3 Key stakeholders Style my Space is also focusing on the business stakeholders and their goals that are important for creating successful designs. However, an exclusive focus on business stakeholders could lead to problems producing a design that doesn’t meet user’s needs, or is technically feasible. Regardless of how well it might meet the needs of end users.
Every person trading on their own, such as builder or decorator, relies on customers to pay for their services and suppliers to provide materials and resources to make the business a success. Style my space will be operated by a sole trader Naila Abdallah, who is also a business management student. As I’m also young to start a business on my own it is likely that I may commit mistakes that are why I wouldn’t take risk. In that case, I’ve suggested Mr.Abdullatif Abdallah who is also my father to approve and assist me in the business as he is quite well experienced in making business decisions; therefore he’ll always be around to help me out in making decisions. Secondly there’ll be 4 employees working under me, as two will handle the accounts department, one will manage when I’m not around and the last one will be my assistant. My business products such as the furniture will be supplied by the KINGS FURNITURE, as they are one of the best well known companies known in town.
Coming to the competitor rivalry, chances are less because several interior designers work in town and I’m in the Kariakoo area. So, in that case I’m safe. My customers will be adults and mostly architects who’ll need help with the interior designing. Lastly my start-up budget will be from TSH.150, 000 onwards. 6.1 Physical resource requirements Premises- Style my space company will be located in Kariakoo Amani Sikukuu Street Opp.
Al-Karim restaurant. The office rent will be from Tshs150, 000/= onwards. Cash register- Our Company will need one cash register for the manager to sit, where also the money will be saved. The cash register will be bought from Masumin printers at the cost of THz 700, 000/=.
Fixtures and fittings- There will be some fixtures in the office like the fans, lighting, switches, sinks etc. The furniture requirements will be tables, adjustable chairs, projection for the designing confirmation. It is a home office where the fittings are there from before as it is a home office. The total price is approximately THz 1,500,000. Furniture- The furniture will be supplied by the Kings furniture where will sell the dressing tables, and the home furniture where the investment will be from THz 1000000 onwards. Machines: the business shall need highly maintained equipments that are amounting up to THz 1000000.
They shall buy these from the Sadolin Company that shall encourage the business to make better designs. 6.2 Human resource requirements Style my space company will have 5 employees working under the owner as shown below: Accountant: In Style my space company it is necessary to make the financials and know the process of the company financially that is why two employees will work in the accounts department. The accountant will be responsible of handling financial statement of the year and guide the owner to standard up in the financial position. Manager: One needs to be available when I am not around, that is why Style my space has appointed one employee to work as a manager and manage the office when I am not around, and assist the clients during the owner’s absence.
The manager will be responsible for managing the company both financially and non-financially. Professional interior designers: As I am already an interior designer, yet I will need two interior designers who will approve my designs and help me out with other designs and see if my interior business is going at the right track. This gives me an advantage of getting more ideas regarding my business and a good support from them. Suppliers: The products for style my space company will be supplied by Kings Furniture. King furniture and the owner have made an agreement to supplier designer products at a cost to cost price with 2months for credits. The suppliers will supply office furniture, house furniture, dining tables, kitchen cabinets and other furniture appliances.
Employees: Style My Space shall employ a number of 5 workers that are required to have good designing knowledge, good communication skills with the customers and knowledge in creating good housing structure and environment. • The financials 7.1 Start-up costs and Year 1 Budget June 2017-June 2018 Cash Needed To Start % of Total Actual cash spent % of Total Variance % of Total Monthly Costs Salary of owner-manager 4500000 2% 5000000 12% 500000 1.792115 All other salaries and wages 21000000 9% 2100000 5% 0 Rent 4800000 2% 4800000 12% 0 Advertising 600000 0% 550000 1% -50000 -0.17921 Inventory 37400000 16% 37450000 90% 50000 Insurance 200000 0% 200000 0% 0 Taxes 157536000 68% 157500000 379% -36000 Maintenance 1200000 1% 1200000 3% 0 Miscellaneous 600000 0% 575000 1% -25000 -0.08961 Sub-Total 227836000 98% 37866200 91% 439000 1.573477 One-time costs Fixtures and equipment 550000 0% 470000 1% -80000 -0.28674 Licenses and Permits 200000 0% 200000 0% 0 Operating cash 1000000 0% 1000000 2% 0 Installation Charges 200000 0% 200000 0% 0 Sub-Total 1950000 1% 1870000 4% -80000 -0.28674 Totals 231736000 100% 41606200 100% 279000 100.00% 7.2 Sales forecast The sales forecast for Style my space is shown above. It states that the amount for the first months is reasonable, affordable by all clients’ middle class and high class. It gets higher each month and also changes with the flow.
The furniture is fixed for the first three months and it starts to change after the first three months. The costs are going higher as the business is expanding monthly. The decorator fabric is fixed for the first three months and it is also starting to rise as the customers are demanding for the decorator fabrics. For the art pieces the first six months it’s fixed then it also starts to rise. The interior shutters are fixed for the first eight months and after eight months it’s rising by 10%.
The wall paint is a fixed price for the first three months and then it is starting to rise as shown on the sales forecast table. Lastly the designer posters that are the wallpapers full of design that clients would love to design, this also is necessary for the interior designing. Month AUG SEPT OCT NOV DEC JAN FEB MARCH APRIL MAY JUNE JULY Total Sales Furniture 500000 550000 500000 565000 565000 565000 565000 565000 565000 600000 600000 600000 6740000 Decorator fabrics 300000 300000 400000 400000 400000 400000 425000 450000 480000 500000 500000 600000 5155000 Art pieces 250000 300000 300000 300000 300000 300000 375000 375000 375000 400000 400000 400000 4075000 Interior shutters 155000 165000 165000 165000 165000 175000 175000 175000 200000 200000 200000 200000 2140000 Wall paint 550000 550000 550000 600000 650000 650000 600000 650000 680000 680000 680000 680000 7520000 Designer posters 300000 300000 350000 350000 350000 380000 380000 380000 400000 400000 400000 400000 4390000 30020000 7.3 cash flow forecast The table above shows the projected cash flow forecast for the first financial year. The business management team intends to keep the businesses cash balance in a good and profitable position.
Month AUG SEPT OCT NOV DEC JAN FEB MARCH APRIL MAY JUNE JULY Total Revenue TZS TZS TZS TZS TZS TZS TZS TZS TZS TZS TZS TZS TZS Sales 2055000 2165000 2265000 2380000 2430000 2470000 2520000 2595000 2700000 2780000 2780000 2880000 30020000 Capital Invested 30000000 2500000 2500000 2500000 2500000 2500000 2500000 2500000 2500000 2500000 2500000 2500000 57500000 Total income 32055000 4665000 4765000 4880000 4930000 4970000 5020000 5095000 5200000 5280000 5280000 5380000 87520000 Expenditure Salary 1750000 1750000 1750000 1750000 1750000 1750000 1750000 1750000 1750000 1750000 1750000 1750000 21000000 Loan repayments 5000000 5000000 Legal fees 450000 450000 Rent 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 4800000 Inventory 3000000 3000000 3200000 3200000 3200000 3200000 3200000 3000000 3000000 3000000 3200000 3200000 37400000 Insurance 100000 100000 200000 Transport expenses 600000 600000 600000 600000 600000 600000 600000 600000 600000 600000 600000 600000 7200000 Advertising and promotion 200000 200000 200000 600000 Miscellaneous 150000 150000 150000 150000 600000 Total expenditure 6650000 6100000 6150000 5950000 5950000 10950000 6050000 5750000 5750000 5750000 6100000 6100000 77250000 Income less expenditure 25405000 -1435000 -1385000 -1070000 -1020000 -5980000 -1030000 -655000 -550000 -470000 -820000 -720000 10270000 Opening bank balance 35000000 3150000 -1220000 -5740000 -10105000 -10105000 -15290000 -19940000 -23830000 -27615000 -31285000 -35040000 -142020000 Closing bank balance 60405000 1715000 -2605000 -6810000 -11125000 -16085000 -16320000 -20595000 -24380000 -28085000 -32105000 -35760000 -131750000 7.4 Break-even analysis and profit forecast Year 1 Profit Forecast (for first twelve months) Total Yr1 Revenues 87520000 Less Yr1 Costs 77250000 Yr1 Net Profit 10270000 Net Profit Margin% Yr 1 Net Profit Total Amount 10270000 Divided by Total Yr1 Revenues (x 100) 87520000 Net Profit Margin% 11.73% Mark-up% Total Profit 10270000 Divided by Total Costs (x 100) 77250000 Mark-up% 13.29% Break-even Analysis Total Revenues 87520000 Total Volume of Sales: 1610 Less Total Variable Costs 37400000 Total ‘Contribution’ 50120000 Total Contribution 50120000 Divided by Total Units 1610 Contribution per Unit 31130.435 Total Fixed Costs 39850000 Divided by Contribution per unit 31130.435 Break-even Volume 1280.0978 7.5 Financial investment required, source(s) of finance and costs 1. Bank Loans: Style my space company will take bank loan from Diamond Trust bank. The loan amount approximately T.shs 5000000. The interest rate is going to be 12% that is according to the Central Bank of Tanzania.
They intend to start paying the amount one month after start up. The total loan amount with the interest shall be T.shs 1120000. With this money, the owner will use it to pay for the rent and other utilities like water, electricity charges and maintenance. 2. Owner’s personal savings: The owner has her own savings amounting up to T.shs 200000.
T.shs 150000 shall be used in the business start-up and the remaining shall be used for miscellaneous expenses. The owner shall also be helped by her friends and relatives to uplift her business. To be specific, the owner will use her personal savings to pay for basic raw materials like wall paints, wood carving machine, ribbons and many more. 3.
Religious Institute Loan: The owner has also taken loan from the religious society the Sunni Muslim Jamat SMJ. The amount borrowed from the Sunni Muslim Jamat is T.shs 15,000,000. They have agreed to help the business in the growth and expand after one year of the start-up. From this money the owner will be paying for transport chargers, salaries for the workers, supplies of decorations, office rents and other expenses. Referencing: 1. www.bplans.com/interior_design_business_plan 2. http://www.bplans.com/home_interior_design_business_plan/executive _summary_fc.php 3. http://knowpapa.com/swot-analysis-of-the-interior-design-businessplan/ 4. Abe guide to business start-up/Sarah Pamphilion BA 5. www.UKessays.com 6. www.littlegreen.org 7. www.cim.IK 8. www.expertsmind.com 9. www.gfmorris.com/ a. www.mylcc.co.uk b. www.shaletec.org/edwardlowe.org c. www.en.wikipedia.org/ d. www.qwest.sbresources.com www.interiordesignersaustralia.com.au