НАУЧНЫЕ РАБОТЫ

Business Plan

client a discount of $0,8 (the price of my service). He or she will give

this coupon to salesperson when will make a purchase, as a result a client

of a market will lose nothing. In addition, before the beginning of

operations I will make contracts with the managers of pavilions and shops.

The main point of them is that I will publish information about their

product in my database and will take nothing from them, but they will have

to compensate clients the $0,8, when they will make purchases in the

pavilions with my coupons. So, clients will be motivated to make a purchase

in the pointed pavilions and managers will get new clients.

I also will give advertisement in newspapers and on printed buckets

that will be spread at the doorways of the shopping centers.

Finally, I plan to use the Internet advertising; mostly banners that

will be located at the Irkutsk on-line shops. I plan to make the exchange

of banners to avoid the payment for advertisement.

SELLING TACTICS

Cash and Accounts Receivables

All sales will be made in cash, as invoices and credit cards are not

yet actively used in Russia. So for the first three year I will not plan to

use accounts receivables. Only after the third year, when the phone-

consulting center will be opened, I plan to sell information on credit by

phone bills. Such system assumes that the phone companies will clear these

bills, and then their clients pay for the whole phone bill, in which the

amount of my bill will be included. So, the management of account

receivables will not be complex, and will be secured by the phone

companies’ liabilities.

Peak sales

As I plan to establish consultant service by using database that helps

to find products, my sales will depend on the sales of market. Within

Russia, most retail sales occur during the New Year holiday season and

during the season of the men’s and the women’s holidays (February 23 and

Mart 8). As a result, the biggest sales will be during the winter season

because during that time there are the biggest quantity of clients, but at

this time there is also a downturn in cash. I think that some decline will

be at other seasons, especially during summer because a lot of people are

going on vocation. There is an increase in sales at the end of summer

because students prepare for school and colleges and buy a lot of non-food

things. So, the best time is the end of December, the end of February, the

beginning of Mart, the end of August and the beginning of September. During

this time, I will have the biggest cash inflow.

OPERATIONS PLAN

Each consulting center will be located at the doorways of the shopping

centers. The average square of a center will be 16 m2. One center will have

the computer (Pentium 3, 550-750 hertz, 128 RAM) with a monitor and a

modem, the printer (Canon LBP-800) and a telephone/fax. Each computer will

have the database of goods at markets, Windows 2000, Microsoft Office

package, the Internet application and Web-design programs. Office equipment

will be a computer table, a chair, and the document cupboard. In addition

each consulting center will have the pack of paper for printing and some

writing implements. A manager will deliver the cartridges for a printer,

when they are necessary.

The working time of my business will be the same as the working time

of the shopping center «Irkutskiy», the shopping center «Fortuna», and the

shopping center «Complex». The «Irkutskiy» and the «Complex» working hours

are from 10 am to 8 pm, so the consulting centers in these markets will be

opened during this time. The consulting center in the shopping center

«Fortuna» will work from 9 am to 7 pm. The web site will be available 24

hours a day. The phone center will work from 9 am to 9 pm.

The information will be updated by consultants of consulting centers

that have liabilities to collect changes in information after the workday

and put it in the database.

FINANCIAL PLAN

Necessary Financing

For my operation I will need $2,250 at the beginning of the second

year of existence. If the demand for my service will be as projected then I

will open the second consulting center in the shopping center «Fortuna», so

I will need financing to buy the fixed assets. This loan will be necessary

to support my development.

Cash Budget

| |2003 |2004 |2005 |

|Net income |$1 331|$3 075|$3 510|

|Depreciation |$694 |$1 674|$2 073|

|Net cahs provided by |$2 025|$4 750|$5 583|

|Cash used to acquire fixed |-$1 |-$1 |-1403,|

|assets |273 |336 |31 |

|Cash used to acquire |-$829 |-$871 |-$914 |

|Net cash provided by |-$2 |-$2 |-$2 |

|investing activities |102 |207 |317 |

|Owner's investments |$2 102|$0 |$0 |

|Increase in notes payable |$0 |$2 207|$0 |

|Net cash provided by |$2 102|$2 207|$0 |

|Net change in cash |$2 025|$4 750|$3 266|

|Cash at the beginning of year|$0 |$2 025|$6 774|

|Cash at the end of year |$2 025|$6 774|$10 |

| | | |040 |

Balance Sheet

| |2003 |2004 |2005 |

|Cash |$2 025|$6 774|$10 |

| | | |040 |

|a computer |$500 |$1 025|$1 576|

|a monitor |$250 |$513 |$788 |

|a modem |$80 |$165 |$253 |

|a printer |$153 |$313 |$481 |

|office equipment |$200 |$410 |$631 |

|a telephone/fax |$90 |$185 |$284 |

|Less accum. |$420 |$1 434|$2 689|

|Total fixed assets |$853 |$1 175|$1 323|

| | | | |

|a database |$661 |$1 355|$2 083|

|Other software |$168 |$345 |$531 |

|Less accum. |$274 |$934 |$1 752|

|Total intangible |$556 |$766 |$862 |

| | | | |

|Total assets |$3 433|$8 715|$12 |

| | | |225 |

| | | | |

|Long-term notes |- |$2 207|$2 207|

| | | | |

|Nikolay Belih, |$3 433|$6 508|$10 |

|capital | | |018 |

| | | | |

|Total Liab. and |$3 433|$8 715|$12 |

|Equity | | |225 |

Income Statement

The amounts are given as they are in Russia

| |2003 |2004 |2005 |

|Revenues |$8 464|$18 |$33 |

| | |050 |940 |

|Salary expense |$2 400|$5 040|$15 |

| | | |876 |

|Office rent expense |$1 600|$3 480|$6 854|

|Depreciation furniture |$694 |$1 674|$2 073|

|Advertising |$659 |$631 |$609 |

|Insurance |$105 |$210 |$315 |

|Utilities expenses |$62 |$131 |$413 |

|Total operating expenses |$5 520|$11 |$26 |

| | |167 |141 |

| | | | |

|Telephone & Internet |$525 |$630 |$756 |

| | | | |

|Interest |$0 |$662 |$662 |

| | | | |

|Total expenses |$6 045|$12 |$27 |

| | |458 |559 |

|Net income before taxes |$2 420|$5 591|$6 381|

|taxes (45%) |$1 089|$2 516|$2 872|

|Net income |$1 331|$3 075|$3 510|

Ratio Analysis

| |2003 |2004 |2005 |

|Debt ratio |- |0,25 |0,18 |

|Debt -to-net worth |- |0,46 |0,30 |

|Times interest earned |- |8,44 |9,64 |

|Fixed assets turnover |9,93 |15,36 |25,65 |

|Total assets turnover |2,47 |2,07 |2,78 |

|Profit margin on sales |0,16 |0,17 |0,10 |

|Return on total assets |0,39 |0,35 |0,29 |

|Return on equity |0,39 |0,47 |0,35 |

I did not indicate accounts receivables and accounts payables, as my

business will be very small and all operations will be done in cash by

personal sales during first three years. In addition, invoices and credit

cards are not common in Russia, so it is one more reason of not indicating

them. So, I did not count liquidity ratios, as all of them are based on

current liabilities.

From my analysis of projected future operations, we can see that debt

ratio will decrease in 2004 and 2005 from 0,25 to 0,18. It tells about the

decrease of funds provided by creditors and increase in the attractiveness

of business for investments, as creditors prefer lower ratios. Debt -to-net

worth ratio will also decrease in 2004 and 2005 from 0,46 to 0,30, what

tells about the increase of business’s ability to meet both its creditor

and owner obligations in case of liquidation. The times interest earned

ratio will decrease. It indicates that the firm will have fewer

difficulties in meeting the interest payments of loan. The net income can

decrease almost by ten times until the business will not be able to pay its

interest obligations in 2005.

The fixed assets turnover will constantly increase, what indicates the

increase of effectiveness of the fixed asset usage. The total assets

turnover ratio will decrease from 2003 to 2004 and increase from 2004 to

2005. It tells about the decrease of the volume of the business produced on

the total asset investment in 2004 and increase of it in 2005. The main

cause of decrease will be more significant increase in total assets and

less significant in sales.

The profit margin on sales ratio will slightly increase in 2004 and

more significantly decrease in 2005. It indicates the decrease of income

per dollar for the first three years of existence. The cause of the

decrease in 2005 will be the more intensive use of debt.

The ROA will constantly decrease in the first three years of existence

of the business. It indicates the decrease of the return on assets. The

cause of it will be more significant increase in total assets and less

significant in net income.

The ROE will increase from 2003 to 2004. It will indicate the increase

in the rate of return on the owner’s investments. The cause of it will be

more intensive use of debt. But in 2005 there will decrease in ROE, what is

explained by the more significant increase in equity and less significant

in net income.

Depreciation Estimation

I will use the modified accelerated cost recovery system method of

depreciation. According to my opinion it is the best for me because it will

allow getting some tax savings because of the decrease of income due to

accelerated depreciation.

|All assets |Fixed assets |Intangible assets |

|Depreciation |Depreciation |Depreciation |

|2003 |2004 |2005 |2003 |2004 |2005 |2003 |2004 |2005 |

|33% |45% |15% |33% |45% |15% |33% |45% |15% |

| |33% |45% | |33% |45% | |33% |45% |

| | |33% | | |33% | | |33% |

|Accumulated depreciation |Accumulated depreciation |Accumulated |

| | |depreciation |

|$694 |$1 674 |$2 073|$420 |$1 014|$1 255|$274 |$660 |$818 |

Fixed Capital Estimation

I made the estimation for the first year. As all assets are almost the

same in each consulting service than I determined the price for the next

period by making inflation adjustments.

| |ic |ic |ic |probably |

|a |$550,00 |$500,00|$450,00 |$500,00 |

|a monitor|$275,00 |$250,00|$225,00 |$250,00 |

|a modem |$96,00 |$80,00 |$66,06 |$80,34 |

|a printer|$180,00 |$150,00|$135,00 |$152,50 |

|the |$1 040,00|$650,00|$325,00 |$660,83 |

|Other |$400,00 |$150,00|$10,00 |$168,33 |

|office |$220,00 |$200,00|$180,00 |$200,00 |

|a |$100,00 |$90,00 |$80,00 |$90,00 |

|/fax | | | | |

|Total: |$2 861,00|$2 |$1 |$2 102,01 |

| | |070,00 |471,06 | |

Working Capital Estimation

I also made the estimation for the first year, as with the fixed

capital, and than determined the price for the next period by making

inflation adjustments.

|Name |Costs |

|of | |

|assets| |

| | | | |

| | | | |

|Paper |$36,00 |$24,0|$13,00|

| | |0 | |

| | | | |

|Cartri|$27,50 |$25,0|$22,50|

|dges | |0 | |

| | | | |

|Writin|$15,00 |$12,7|$7,14 |

|g | |1 | |

| | | | |

|Total:|$78,50 |$65,7|$42,64|

| | |1 | |

| | | | |

Basing on the cash receipt forecast, I will need

1*$78,50+4*$62,71+1*$42,64= $62 a year for working capital.

Marketing Estimation

The sales estimation I based on the next assumptions:

1. The share of the ''Irkutskiy'' market will decrease, as there will

appear some competitors.

|2003 |2004 |2005 |

|45% |43% |41% |

The amount of purchases a day in average in the "Irkutskiy" market:

in items

|2003 |2004 |2005 |

|193 |219 |242 |

2. The share of the the ''Fortuna'' martet will decrease as there will

appear some competitors.

|2004 |2005 |

|12% |10% |

The amount of purchases a day in average in the "Fortuna" market:

in items

|2004 |2005 |

|61 |59 |

3. The share of the ''Complex'' market will stay constant.

|2005 |

|19% |

The amount of purchases a day in average in the "Complex" market:

in items

|2005 |

|112 |

The assumed amount of potential clients that will use my database:

|1 year|2 year|3 year|

|50% |70% |85% |

The amount of potential clients a day

|2003 |2004 |2005 |

|29 |59 |105 |

The amount of potential clients a year:

|2003 |2004 |2005 |

|10650 |21488 |38481 |

The projected sales price

|2003 |2004 |2005 |

|$0,80 |$0,84 |$0,88 |

Advertisement expenses

| |2003 |2004 |2005 |

|Printed |$347 |$303 |$265 |

|News papers|$312 |$328 |$344 |

|Total: |$659 |$631 |$609 |

Labor Expenses

Labor expenses are based on assumption that every year I will open one

additional consulting center. So, there should be one additional consultant

each year.

A month:

| |2003 |2004 |2005 |

|Salary |$200 |$210 |$221 |

A year:

| |2003 |2004 |2005 |

|Salary |$2 400|$5 040|$15 |

| | | |876 |

Rent Expense Estimation

Rent, a year

| |2003 |2004 |2005 |

|``Irkutskiy`` |$1 |$1 |$1 |

|market |600,00 |680,00 |764,00 |

|``Fortuma`` | |$1 |$1 |

|market | |800,00 |890,00 |

|``Complex`` | | |$3 |

|market | | |200,00 |

|Total |$1 |$3 |$6 |

| |600,00 |480,00 |854,00 |

MANAGEMENT PLAN

As I plan to organize small venture, I decided to use simple structure for

management.

The responsibility of manager: develop database, programming, accounting,

transport, managing finance, human resource, and operational activities.

The responsibility of consultants: serve clients and update database, look

after equipment

This structure and distribution of functions are optimal for such

businesses as I plan to organize.

HUMAN RESOURCES PLAN

The manager of the firm should be able to use specific program tools.

He or She should have manager/economic education and have some experience

in working for a consulting firm. The manager should know financing,

programming, basics of human resource management, and accounting.

The consultant should have computer skills, know programming and be

able to work with the Internet effectively.

As I stated in the financing plan I plan to hire one more consultant

each year because I plan to open new consulting center each year.

As my venture is small and does not have much financing I will not

plan to pay for all medical insurance expense of employees, but I will

provide transportation from home to work and from work to home. I plan to

establish friendly environment that will help to organize work more

effectively.

The motivation will be based on the salary % and on the opportunity of

realization available knowledge.

CONCLUSIONS

This venture will help people to save their time and money. It will

help to find what is necessary more quickly.

According to market plan it has good opportunities for development and

if the market strategy is right than it might be quite profitable. Next, by

using effective management tactics the organization of the work process

will be on the highest level. In addition, the use of cash sales will help

to held cash balance in good condition. Finally, prepared and qualified

personal will be the guaranty of stable development.

As a result of this venture clients find products more quickly, and

sellers get new clients, consequently, everybody win. So, this venture has

a lot of perspectives.

-----------------------

[pic]

Manager

Consultant 1

Consultant 2

Consultant 3

Страницы: 1, 2

Приглашения

09.12.2013 - 16.12.2013

Международный конкурс хореографического искусства в рамках Международного фестиваля искусств «РОЖДЕСТВЕНСКАЯ АНДОРРА»

09.12.2013 - 16.12.2013

МЕНЮ

НАУЧНЫЕ РАБОТЫ

Business Plan

Приглашения

Международный конкурс хореографического искусства в рамках Международного фестиваля искусств «РОЖДЕСТВЕНСКАЯ АНДОРРА»

Международный конкурс хорового искусства в АНДОРРЕ «РОЖДЕСТВЕНСКАЯ АНДОРРА»