Final Project on Comfort Streek

Entrepreneurship


COMFORT STREEK
“A WORLD LIKE NO OTHER”


Business Plan

Presented to:
Prof. Rizwan Saleem


Presented by:
Sajeel Abbas l1f06mbam2041
Usman Ghani l1s07mbam2137
Umair Abdullah l1s07mbam0188
Ahmad Malik l1s07mbam2136













COMFORT STREEK
“A WORLD LIKE NO OTHER”

A STRESS RELIEFE CENTRE


Table of Contents

Executive summery 04
Vision 05
Mission Statement 05
Management & Organizational structure 06
• Marketing department 07
• Finance department 07
• Administration Department 08
• Procurement Department 08
• H.R.M. Department 09
SWOT Analysis 09
Objectives 10
Market segmentation & Target market 13
Market positioning 15
Marketing mix 17
• Product & services 17
• Pricing strategy 22
• Place 23
• Promotion 24
Financial plan 30









Executive Summary:
The project is about a new business venture. It covers the core concepts that are involved in the development and implementation of this new company. Taking the initiative and pulling it towards something unique and different, a new company concept has emerged that is Stress Relief Centre.

This project guides about the company attributes, boosting its early phases to penetrate through target market identification and segmenting it to different locations, planning for market positioning, effective pricing strategy, how to promote it to clients through different mediums and sources and most importantly, the environmental factors that are associated with the early stages of company development and post variable factors that are major challenges to the company.


















Our Vision
To make COMFORT STREEK a caring company, recognizable for uniqueness Nationwide.








Mission Statement:
Your fitness is our goal. We provide a safe, secure, non-intimidating fitness environment where customers can achieve their fitness goals. The professional staff is committed to the highest level of professionalism that ensures the attainment of customers’ fitness with motivation and quality.
No more plump bellies now.





MARKET RESEARCH:

We are going to launch new company in Lahore, Pakistan which is Health Company. In Pakistan, there are already few companies providing such services like SHAPES AND SUKH – CHAN so, there is possibility of new company to come, and establish and get favorable response. It is concluded after deep research that people are getting health conscious day by day and they want such a place where they can fulfill there health needs under one roof. So after introducing new company we will be able to provide unique services to our target customers and so we are providing all services under roof so we will get a handsome market share in health industry.


Customer Loyalty:

Customer loyalty situation is also unpredictable for us because we will be new in market and we don’t have any previous business background but we are planning to attract more and more target customers through different markets campaigns.





















MANAGEMNT AND ORGANIZATIONAL CHART








MANAGEMNET STRUCTURE:
MD will play key roll in management control system by utilizing his core competencies, core values and will apply himself for multitasking like
He will strictly observe the organization organ gram by taking report leading head of the following departments
1. Management department
2. Finance department
3. HR department
4. Accounts department
5. Security department
Management department:
As Stress relief center mission and vision statement it should be his first priority that management department will translate vision into mission to achieve targets and goals. MD should receive the progress of organization that
• Organization is providing the basic facility for general customers or not.
• People are acknowledging organization benefits or not.
• Management authority’s goals and target are clear or not.
• Management authorities are working for research and development or not. So in the other words management department is back bone of the organization which start from top to first line manager therefore MD will control the structure of organization through management department.
Finance department:
Finance department is one of the most important departments where the MD can collect the following reports for timely decisions like
Budgeting
Cash flow
Profit and loss statement
Expense sheet
Project plan sheet
Financial analysis
Balance sheet etc.
The report will be submitted to MD to finance manager to control financial crisis
HR department:
It is usually says that if the staff and worker are satisfied and happy with their organization environment than no force can hurdle to get achievements but it only occurs if the people have some connections with top line managers, therefore MD can get an interface through HR department. HR department will take step by step approach like through
• Appraisal letters
• Evaluation reports
• 360° feedback report and with other reports MD will get his target and goals by teamwork.
Accounts department:
Account officers usually update accounts on daily basis and supply daily finance statements to MD. He will hold data by the help of daily book keeping of account department.
Security department:
Security department is usually control by the administration and under HR department MD plays no role in this department.
It is the position who proves its leading and ruling an object for core values and competencies.







Rules & Regulations:
These necessary rules and regulations have been created to provide all members and their guests with a comfortable, safe and enjoyable experience on every visit. The contents also form part of your membership agreement with us.
We may make reasonable changes to these rules at any time by displaying changes on a club notice board.
HOW TO BECOME A MEMBER?
COMFORT STREEK offers two types of lifetime membership: Founder Membership and Regular Membership. Founder Membership refers to members who join COMFORT STREEK before the actual club opening, and is temporary. Hence, the membership fee is reduced for the Founder Members’ benefit. Regular membership starts once the club is open. See below for the Founder & Regular Member rates
Lifetime Membership:

Founder
(covers spouse and children) Rs 200,000/-
Regular
(covers spouse and children) Rs 400,000/-



Monthly subscription:
Only Lifetime Members will pay a subscription fee for a package that will include the free use of gymnasium, the swimming pool and other listed facilities.
Member Spouse Children (8-21) Sons aged 21 to 25
Rs.2000 Rs.2000 Rs.1000 Rs.1500

Temporary Membership:
You can become a short-term member at the Comfort Streek Wellness Club by selecting one of the following Temporary Membership Packages. Temporary Memberships are offered of one month and a maximum duration of one year.

Subscription Fee is not applicable on temporary members.
Membership Type Price for Principal Member Price for Member’s Spouse and children above the age of 21 Price for children
Under the age of 21
1- YEAR RS.75, 000 40,000 20,000
6- MONTHS RS.50, 000 25,000 10,000
3- MONTHS RS.30, 000 17,000 8,000
1- MONTH RS.12, 000 7,000 3,500

Membership:
1. Membership cards are issued to all members, except infants, and must be presented to the club on each visit. Lost cards will be replaced at a cost.
2. Membership is transferable subject to prior approval by the club management and at the payment of 25% of the prevalent membership fee .A member can only transfer his /her membership after retaining the membership for the period of 1 year. The membership fee is not refundable.
3. Corporate Membership of a corporate member will be transferred free of cost to another corporate member on written request by the corporate head.
4. Supplementary members are dependent on the principle membership holders.
5. Any member who fails to abide with the rules & regulations of the club shall result in termination of the membership along with all privileges.



GUESTS:
1. Only members aged over 18 may introduce guests to the club, subject to the payment of the relevant charge.
2. Members must always accompany their guests in the club and are responsible for their conduct.
3. The club reserves the right to refuse entry to any person as a guest, at it's sole discretion.


JUNIOR MEMBERS:
1. Children aged fewer than 16 must be supervised by an adult member at all times. This includes all recreational facilities available to members



DRESS CODE:

2. Members and guests must wear a form of dress as deemed appropriate by the club management to the time of day and place on all occasions.
3. Appropriate swimwear must be worn.






COACHING, PERSONAL TRAINING AND PERSONAL STAFF:
1. All coaching and personal training is controlled by the club. No other coaching or personal training is permitted without the prior written consent from the General Manager
2. Personal staff will not be allowed as guests or as part of family member's in club facilities.
NOTICE BOARD:
Specifying rules & regulations are to be considered as part of these Rules & Regulations. All signage in and around the club area

YOUR GENERAL SAFETY & HEALTH:
1. The Club may, at any time, withdraw all or part of a facility for any period or periods and with or without notice in connection with any cleaning, repair, alteration or maintenance work or for any reasons beyond their control.

2. Members and guests are advised not to undertake strenuous physical activities if they have reservations as to their physical condition without seeking medical advice in advance. All members must undergo an initial assessment and a basic supervised induction befor
3. e using the Fitness Studio equipment
4. Only sealed plastic drinking containers are permitted in any training area.
5. For hygiene reasons please shower before entering the pool.

6. No outside food & beverages are permitted in any area of the club except bottle water.

7. No pets are permitted in the club buildings with the exception of registered guide dogs.
8. The main entrance to the club must be used when entering or leaving. Alarmed fire exits, which are clearly marked, are there in the interest of safety and must only, be used in an emergency.

9. All vehicles parked inside or outside the premises are at owner's own risk.

10. Smoking is not permitted in any part of the Club.
11. The management will not accept liability for the personal property of members or their guests.

12. The management cannot accept any liability for injury to any member or guest that may occur on the premises or within the grounds of the Club.


13. Any member who suffers an accident on the Club grounds must report it to the General Manager immediately.
14. Any person using club facilities with cold, open wounds, bandages or any infection will not be permitted to use club facilities.

SWOT ANALYSIS

STRENGHT
• Friendly environment
• Professionally qualified trainers
• Diversified and flexible training programs
• Co facility for specific timings for couples only


WEAKNESSES
• Less space for future project
• Lack of Experience
• Comparatively equivalent pricing




OPPORTUNITIES
• Attractive Future Projects
• International collaboration
• Diet counseling and Diet Cafe

THREATS
• Established Competitor (Shapes)
• Higher then expected Costs
• Contingencies
• Legal and Security Issues



Objectives
1. Making healthy environment.
2. Providing best services with latest tools and techniques.
3. Providing helpline for customer care and 24hour service.
4. Limited rates with extra ordinary services
5. Available for almost all categories of age.
6. Providing services to companies in form of memberships.


Product Life Cycle
Industry


























Market Segmentation and Target Marketing:
Marketing segmentation is done on the basis of Geographical region, Demographic factors, and Psychographic and Behavioral factors. Than from these segments target market is identified.

Target Market Identification:
The target market is identified has following geographical, demographic, psychographic and behavioral attributes.


Geographical region:
Our target market geographical region profile is as follows.


o City:
o Lahore

o Areas:
o Defense

We plan to open our branches in the following areas in the future.
o Gulberg
o Model Town





Demographic factors:
• Age:
o 12-45
o 45 and above


• Gender:
o Male/Female
• Income group
o Upper class
o Upper middle class

• Occupation:
o Student
o Doctors
o Engineers
o Computer Eng
o Business Man
o Accountants


Psychographic:

• Values and Life Style:
o Achievers
o Party goers
o Health conscious
o Stylish
o Sporty



Behavioral factors:
• Occasion:
o Regular occasion
• Benefits:
o Quality
o Uniqueness
o Technical


Market Positioning

Positioning for competitive advantage:
Beyond deciding which segments of the market it will target, the company must decide what positions it wants to occupy in those segments. A products position is the way the product is defined by the consumers on important attributes, the place the product occupies in consumers minds relative to its competitors.
The positioning task consists of three steps:-







Identifying possible competitive advantages.
As the Company is new in the market, with different features and attributes, so the management have identified that competitive advantage are its unique services, and good team etc.

Choosing the right competitive advantage.
Further analysis leads to the conclusion that what people actually need is quality and long life of the product and also the enthusiastic customers demand for new ideas or change or the latest technology. So we have chosen quality and perfect innovation as our right competitive advantage.



Selecting an overall positing strategy:-
Now we need to position our company in the minds of customer. We will offer the proposition More for Less. As our services are very good in quality and we are not setting any expensive price for it. We will attract huge amount of clients.


POSITIONING STATEMENT Of COMFORT STREEK

• To people, enthusiasts and conscious about there health, With only COMFORT STREEK you can stay alert and stress less for the rest of your life.
” A WORLD LIKE NO OTHERS”


MARKETING MIX:


Actually marketing mix consists on all those items which an organization performs to create and increase the demand of its product consists on all those items which an organization performs to create and increase the demand of its product.

Following are the 7 marketing mix of our product:

1. Product
2. Physical Evidence
3. Price
4. Placement
5. Promotion
6. process
7. People


PRODUCTS & SERVISES

GYM WORKOUT BODYBUILDING:
COMBINED GYM.
Our ultra-modern fitness center provides the very latest and advanced Nautilus machinery, to guarantee a safe, comfortable, and effective exercise experience
A personal training program is offered along with a full range of cardiovascular and resistance equipment, free weights and floor exercises, with a guarantee from our certified staff.
State of the art Gym sized 100x38 ft with total of 90 plus machines. Includes
1-Light weight area
wooden cherry and oak flooring interior equipped with Biomechanical Machines of Nautilus.

2-Heavy Weight area
Vinyl Flooring equipped with Nautilus’s Heavy Machines for professionals



LADIES:
Only to cater ladies, 42x33 ft sized exclusive state of the art Gym.
1-Light weight area
Equipped with Biomechanical Machines of Nautilus.

2-Heavy Weight area (specifically for women)
Equipped with Nautilus’s Heavy Machines for professionals


WELLNESS:
The condition of good physical and mental health, especially when maintained by proper diet & exercise.

Wellness is a life-long pursuit of a healthy, balanced Lifestyle. Comfort streek believes that many factors contribute to overall wellness: regular physical activity, food choices, balancing career, family, relationships and a positive emotional state of mind.
It is a continuous process of learning how the mind, body, spirit, family, career and faith are all interrelated to create our lifestyle.
Comfort streek is dedicated to providing you with the very best in Wellness programming so you can become confident in the lifestyle choices you make. You will find the knowledge, passion and assistance you need in each and every member of our staff.




SWIM SCHOOL:


Private classes are available at any level for adults as well as children. Children must be at least 8 years old to participate in private lessons. Class time is dependant upon availability of instructors/students and availability of pool.
Our pool is an amoeba shaped tropical pool with sun beds, a mini island, rockeries, waterfall, and fountains surrounded with an artificial forest.
Sized L – 70 ft, W – 42 ft
Temperature controlled water with standard filtering system
MASSAGE SPIRIT:
Now you can enjoy the benefits of a MASSAGE any time your mind, body, and spirit demand to be nurtured.
Our dedicated staff is eager to graciously pamper you from the moment you arrive, stressed and strained, until you depart, refreshed and rejuvenated. Be assured you are in the hands of someone who is dedicated to their profession, has extensively studied the technique and will cater to your every need, making sure that you are completely satisfied with the results.

Pricing strategy:-
The pricing strategy portion of the marketing plan involves determining how we will price our product or service; the price we charge has to be competitive but still allow us to make a reasonable profit.
The keyword here is "reasonable"; we can charge any price we want to, but for every product or service there's a limit to how much the client is willing to pay. Our pricing strategy needs to take this consumer threshold into account.
The most common question small business people have about the pricing strategy section of the marketing plan is, "How do we know what price to charge?" Basically we set our pricing through a process of calculating our costs, estimating the benefits to clients, and comparing our products, services, and prices to other substitutes.
We set our prices by examining how much it costs us to produce the product or service and adding a fair price for the benefits that the client will enjoy. We may find it useful to conduct a Break even Analysis. In break even analysis the price is set to break even on the costs of making and marketing a product or in other words setting a price to make a target profit.



Place:-
We have bought a land in phase 6 DHA Lahore which is an ideal location for our business. The place and the surrounding and the atmosphere provided in our club is perfect for our customers as it will be away from the noisy and busy area of the city. The total area is 6 kanal on which pool, gym, cafe, parking and admin office is constructed.

Promotion:
The promotion tools are
• Advertising
• Public relations

The tools on which we have focused in launching our company are advertising and public relations.
Advertising:-
Any paid forms of non personal presentation and promotion of ideas, goods, or services by an identified sponsor is called advertising. To develop advertising program we first have to see what advertising objectives are.



Advertising objectives:-
Advertising objectives can be defined as a specific communication task to be accomplished with a specific target audience during a specific period of time. There are three primary purposes of advertising:
• To inform
• To persuade
• To remind
As we are launching our company so we will be using the informing advertising. Our objective is to build more demand.


Advertising strategy:
As we have decided which kind of advertising strategy we are using, next we have to see what strategy we are going to use. Advertising strategy consists of two major elements:
• Advertising messages
• Advertising media

Creating the advertising message:-
Advertising can succeed only if commercials gain attention and communicate well. Good advertising massages are especially important in today’s costly and cultured advertising environment. Just to gain and hold attention, today’s advertising massage must have these specifications:
• They should be better planned
• They should be more imaginative
• They should be more entertaining
• They should be more rewarding


In our launch of STRESS RELIEFE CENTRE we have considered all these important aspects of advertising message. Then to make our advertising messages more appealing we have used message strategy, which basically identifies client’s benefits. Our appealing advertisement has three characteristics.

Choosing among major media types:-
After deciding reach, frequency and impact we then have to select media through which we will expose our company. The media we have selected to expose our product contains radio, magazines, newspapers, billboards.

RADIO:
The reason for choosing radio is because of its large mass appeal and secondly it is less costly compared to television advertisement. Initially we are focusing on radio but at later stage may opt television media.

Newspaper and magazine
Next we have chosen newspaper as a medium for the launch of our product. It provides good local market coverage; broad acceptability as all classes can easily buy newspaper; it also has high believability, as it is a good source of all important news.



Billboards:
We have chosen billboards to be another major source of advertising COMFORT STREEK in the areas like Defence, Model Town, and Gulberg.



Public relations:-
Another major mass promotion tool is public relations, which is building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image and handling or heading of unfavorable rumors, stories and events. Public relation departments may perform any of the following functions.



Press relations:-
Creating and placing news worthy information in the news media to attract attention to a person, product or service is called press relations.

Public affairs:-
Building and maintaining national or local community relations is called public affairs. Public relations are used to promote products, people, places, ideas, activities, organizations or even nations. Public relations can have a strong impact on public awareness on a much lower cost than advertising can. The company does not pay for the space or time in the media; rather it pays for staff to develop and circulate information and to manage events.


Major public relation tools:-
In order to launch COMFORT STREEK we will use several tools.
They are as under:-
One of the major tools is News. By giving attractive and eye catching advertisements in the newspaper, we will increase popularity and make an image of ourselves in the minds of the customers.

We will show our SERVICES ads on television channels like GEO, AAJ, and HUM TV We will try to air these ads at the time on which are targeted market must be watching. These ads will be made as attractive and colorful as possible in order to attract teenagers and professionals.






MEDIA CAMPAIGN BUDGET:

Our initial advertisement budget is as follows.




Initial Cost
Initial Budget 84,10,000
TV CHANNELS 6,027,670
BILLBOARDS 520,000
NEWS PAPERS 1,861,325


TELEVISION:
MEDIA PLAN OF COMFORT STREEK for 10 days
Television Channel Time Band TVC Length T0TAL 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th /min Rate Total Cost
Spots Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun

HUM TV 07:00 PM to 07:30 PM 60 sec 10 1 1 1 1 1 1 1 1 1 1 70,000 700000
07:30 PM to 09:30 PM 60 sec 10 1 1 1 1 1 1 1 1 1 1 70,000 700000
09.30 PM to 10.30 PM 60 sec 10 1 1 1 1 1 1 1 1 1 1 45,000 450000
Total HUM TV Amount Total Spots 30 3 3 3 3 3 3 3 3 3 3 185,000 1850000

AAJ TV 05:00 PM to 06.59 PM 60 sec 10 1 1 1 1 1 1 1 1 1 1 10,360 103600
08.00 PM to 09:30 PM 60 sec 10 1 1 1 1 1 1 1 1 1 1 16,835 168350
10:00 PM to 10:59 PM 60 sec 10 1 1 1 1 1 1 1 1 1 1 12,950 129500
Total AAJ TV Amount Total Spots 30 3 3 3 3 3 3 3 3 3 3 40,145 401450

Geo TV 05:00 PM to 06.59 PM 60 sec 18 2 2 2 1 1 2 2 2 2 2 13,598 244,755
07.00 PM to 09:59 PM 60 sec 36 4 4 4 2 2 4 4 4 4 4 80,290 2890440
10.00 PM to 10.59 PM 60 sec 18 2 2 2 1 1 2 2 2 2 2 35,613 641,025
Total Geo TV Amount Total Spots 72 8 8 8 4 4 8 8 8 8 8 129500 3776220


Total Total Spots 132 14 14 14 10 10 14 14 14 14 14 354645 6027670












































We are using three TV channels for COMFORT STREEK ads .our TV ads is for 10 days in initial stages and it can be rescheduled with the passage of time depending upon the response of target customers.



BILLBOARDS:
We are using 2 types of billboards in Lahore. A and B class. We are using 1 A class billboard and 2 B class billboard. It covers the areas of Defense, Gullberg and Model town.

Billboards
City Location Size Area Total Cost

Lahore A Class 60x20 Defense 400,000

Lahore B Class 20x10 Model Town 60,000

Lahore B Class 20x10 Gull berg 60,000

520,000






NEWS PAPERS:
We are using 2 news papers, DAILY JUNG and DAWN. Initially we are giving our ads on Sundays. They can be further rescheduled according to the need of time.

Publication Frequency Station Size Position Color cost

Dawn Sunday K/L/R 27 x 4 Front Page 4 - Color 669,060
Daily Jang Sunday K/L/R 27 x 4 Front Page 4 - Color 1,192,265

Total 1,861,325
Action Plan:
Starts from End at Channel of advertising
June1 June10 TV-Hum
June10 June20 TV-AJJ
June1 June10 TV-Geo
May1 June1 Bill Boards
On Sundays News Papers
This media campaign will be monitored under the supervision of marketing department and marketing department will directly report to the MD.






Financial Plan
• Consulting revenue will make up approximately 85 to 90 percent of total revenue with the rest coming from service revenue.
• Salaries and rent are the two major expenses while depreciation is another significant cost that will increase as the company develops. Although the purchasing of fitness medical and office equipment is expensive constant replacement will be needed to minimize depreciation costs and maintain a competitive edge.
• In order to maintain steady gross margins salaries and advertising expenses are not likely to increase within the first two years of operation unless cash flows significantly increase.
Key Financial Indicators
The most important financial indicators are net increase in cash and net income. Net increase from cash will exemplify the relationship between net income and net cash from operating activities. The greater the increase is Corporate Fitness has that level of financial strength at that point in time.




Break-even Analysis
Corporate Fitness' break-even point is computed in the table below comparing sales and monthly expenses. Sales forecasts indicate that units sold and monthly sales are expected to be much greater than the break-even point mentioned in the table.


Break-even Analysis
Break-even Analysis

Monthly Revenue Break-even Rs.279,300

Assumptions:
Average Percent Variable Cost 6%
Estimated Monthly Fixed Cost Rs.269,250

Projected Profit and Loss
Sales are predicted to increase each month with first year annual sales totaling close to a half-million dollars. Gross margin likewise is expected to increase correspondingly.
Compared to total sales net profit will increase each month and is predicted to increase for 2008 through 2010.


Profit and Loss
Pro Forma Profit and Loss
2008 2009 2010

Sales Rs.5397,500 Rs.6507,500 Rs.8256,000
Direct Cost of Sales Rs.330,000 Rs440,000 Rs.550,000
Other Rs.0 Rs.0 Rs.0
------------ ------------ ------------
Total Cost of Sales Rs.330,000 Rs.440,000 Rs.550,000

Gross Margin Rs.5060,750 Rs.6067,500 Rs.7706,000
Gross Margin % 93.88% 93.24% 93.34%


Expenses
Payroll 1500,000 1500,000 1500,000
Sales and Marketing and Other Expenses Rs.252,000 Rs.252,000 Rs.252,000
Depreciation Rs.72,000 Rs.72,000 Rs.72,000
Insurance Rs.54,000 Rs.54,000 Rs.54,000
Rent Rs.600,000 Rs.600,000 Rs.600,000
Other Rs.0 Rs.0 Rs.0
Utilities Rs.252,000 Rs.252,000 Rs.252,000
Leased Equipment Rs.276,000 Rs.276,000 Rs.276,000
Payroll Taxes Rs.225,000 Rs.225,000 Rs.225,000
Other Rs.0 Rs.0 Rs.0
------------ ------------ ------------
Total Operating Expenses Rs.3231,000 Rs.3231,000 Rs.3231,000

Profit Before Interest and Taxes Rs.1829,750 Rs.2836,500 Rs.4475,000
EBITDA Rs.1901,750 Rs.2908,500 Rs.4547,000
Interest Expense Rs.109,260 Rs.125,310 Rs.141,740
Taxes Incurred Rs.424,240 Rs.677,800 Rs.1101,370

Net Profit Rs.1296,250 Rs.2033,390 Rs.3231,890
Net Profit/Sales 24.05% 31.25% 39.15%

Profit Monthly






Projected Cash Flow
With cash flow increasing significantly and expenses remaining relatively static with only minimal increases cash flow will experience a similar increase for each period of financial evaluation.
Cash flow is expected to more than double in 2008 and increase substantially in 2009 with corresponding positive cash balances.


Cash Flow
Pro Forma Cash Flow
2008 2009 2010
Cash Received

Cash from Operations
Cash Sales Rs.2156,300 Rs.2603,000 Rs.3302,400
Cash from Receivables Rs.2303,950 Rs.3711,740 Rs.4651,790
Subtotal Cash from Operations Rs.4460,250 Rs.6314,740 Rs.7954,190

Additional Cash Received
Sales Tax VAT HST/GST Received Rs.0 Rs.0 Rs.0
New Current Borrowing Rs.270,000 Rs.247,500 Rs.247,500
New Other Liabilities (interest-free) Rs.725,750 Rs.857,550 Rs.934,500
New Long-term Liabilities Rs.90,000 Rs.90,000 Rs.90,000
Sales of Other Current Assets Rs.0 Rs.0 Rs.0
Sales of Long-term Assets Rs.0 Rs.0 Rs.0
New Investment Received Rs.395,000 Rs.300,000 Rs.300,000
Subtotal Cash Received Rs.5941,000 Rs.7809,790 Rs.9526,190

Expenditures 2008 2009 2010

Expenditures from Operations
Cash Spending Rs.1500,000 Rs.1500,000 Rs.1500,000
Bill Payments Rs.2212,430 Rs.2973,640 Rs.3406,900
Subtotal Spent on Operations Rs.3712,430 Rs.4473,640 Rs.4906,900

Additional Cash Spent
Sales Tax VAT HST/GST Paid Out Rs.0 Rs.0 Rs.0
Principal Repayment of Current Borrowing Rs.0 Rs.0 Rs.0
Other Liabilities Principal Repayment Rs.0 Rs.0 Rs.0
Long-term Liabilities Principal Repayment Rs.0 Rs.0 Rs.0
Purchase Other Current Assets Rs.0 Rs.0 Rs.0
Purchase Long-term Assets Rs.217,000 Rs.96,000 Rs.96,000
Dividends Rs.0 Rs.0 Rs.00
Subtotal Cash Spent Rs.3929,430 Rs.4569,640 Rs.5002,900

Net Cash Flow Rs.2011,570 Rs.3240,140 Rs.4523,290
Cash Balance Rs.2111,570 Rs.5351,710 Rs.9875,000

Projected Balance Sheet
The balance sheet indicates that at the end of the first year of operation net worth will be positive and constantly increasing through the end of 2010.

Balance Sheet
Pro Forma Balance Sheet
2008 2009 2010
Assets

Current Assets
Cash Rs.21115,780 Rs.5351,710 Rs.98750,00
Accounts Receivable Rs.930,500 Rs.1123,260 Rs.1425,070
Other Current Assets Rs.0 Rs.0 Rs.0
Total Current Assets Rs.3042,070 Rs.6474,970 Rs.11300,070

Long-term Assets
Long-term Assets Rs.217,000 Rs.313,000 Rs.409,000
Accumulated Depreciation Rs.72,000 Rs.144,000 Rs.216,000
Total Long-term Assets Rs.145,000 Rs.169,000 Rs.193,000
Total Assets Rs.3187,070 Rs.6643,970 Rs.11493,070

Liabilities and Capital 1995 1996 1997

Current Liabilities
Accounts Payable Rs.310,060 Rs.238,530 Rs.283,730
Current Borrowing Rs.270,000 Rs.517,500 Rs.765,000
Other Current Liabilities Rs.725,750 Rs.1583,300 Rs.2517,800
Subtotal Current Liabilities Rs.1305,810 Rs.2339,330 Rs.3566,530

Long-term Liabilities Rs.1090,000 Rs.1180,000 Rs.1270,000
Total Liabilities Rs.2395,810 Rs.3519,330 Rs.4836,530

Paid-in Capital Rs.2395,000 Rs.2695,000 Rs.2995,000
Retained Earnings (Rs.2900,000) (Rs.1603,750) Rs.429,640
Earnings Rs.1296,250 Rs.2033,390 Rs.3231,890
Total Capital Rs.791,250 Rs.3124,640 Rs.6656,530
Total Liabilities and Capital Rs.3187,070 Rs.6643,970 Rs.11493,070

Net Worth Rs.791,250 Rs.3124,640 Rs.6656,530