www.company.com production of cotton buds business plan haris kvgic & edvin sinanovic
TRANSCRIPT
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Production of Cotton Buds
Business Plan
Haris Kvgic & Edvin Sinanovic
www.company.com
Contents...• General Introduction - Developing business idea
• Plan implementation - Organizing production
• Financial analysis - Overview of the cost and profit
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General Introduction• Developing the idea (come with a product)• Interacting with people (additional survey)• Visiting supermarkets• Lack of domestic products• Manufacturing (generally)
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Picture from the supermarket (Corpus delicti)
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ekupi.ba
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Goals and Vision• Start production (facility and equipment)• Quality products (respecting legal procedures,
certificates)• Create positive atmosphere (non-technical part –
everyone doing obligations)• Become leading distributer in the country
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Plan Implementation• Internet research about machines• Automatic machine (easy to operate)• Processes going parallel (production and packing)• ≈ € 31 130 (alibaba global trade)
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Additional possibilities…• Straws• Lollypop sticks
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BN-C1 specifications
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• 4.88% of surveyed people are satisfied with amount of domestic products in supermarkets; 51.22% are partially satisfied, and 43.9% are not satisfied
• Most of examinees prefer domestic products (over 80%).
Market Analysis
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Usage of Cotton BudsHow often do customers use cotton buds?
every day
3 times per week
Once a week
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Financial Aspect
• Start up company• Initial Capital of EUR 100,000• Please see additional slides
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Financial InvestmentBusiness Plan
item Cost (€) additional info
Machine BN-C1 33131.38 From the suppliers webpage
Transportation 4026.42 Supplier’s information
Air compressor 945.89 Pik.ba
Facility 32700.00 Average cost of making a facility 20x15x5m (by FTA doo)
Heating, electrical, water and aero installations
10011.10 Average prices
Cost of starting the business 1022.58 State taxes for starting a business
Conceptual project (“Idejni projekat”) 920.33 Evaluation of the facility by the professionals
Needed permissions and connections 5982.12 Telephone, electricity, water connections + permissions
Ground parcel 6749.05 300m2 (facility) + 300m2 (place around the facility)
Office equipment 3579.04 Basic necessities (computer, desk, chair…)
Material 15069.23 Cotton, plastics, glue (supplier’s information)*
total = 114 164.13 €
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Operational Costs Item Cost (€) Description
Electricity bill 183.90 4.4 kWh * electricity price (JP Elektroprivreda BiH)
Wages 1227.10 3 average wages
Taxes on wages (“doprinosi”) 811.97 Taxes imposed by Law
Meal allowances (“topli obrok”) 322.11 Imposed By Law
Transport 81.30 Imposed by Law
Heating 306.21 Average (by “Toplane Sarajevo”)
Utilities 174.80 Averages (garbage container + water)
Telephone + Internet 87.40 Average
Office equipment (monthly necessities)
51.13 Rough estimation (paper, pens, …)
Administrative expenses 204.52 Accountant + additional
Maintenance 204.52 -
Total: 3654.96 €
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SWOT
• S (strengths): domestic product, no need for transport, lower prices of labor force, electricity,..
• W (weaknesses): new brand, no experience, no marketing
• O (opportunities): first domestic product, utilizing Federal government support programs for start-ups
• T (threats): campaign against using cotton buds (“unhealthy”!?), market stability of competitors
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Profit Estimate
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Investment 2016 2017 2018 2019 2020
expenditures 90870.23 99957.26 109952.98 120948.28 133043.11
Revenues (0.28 €)
125498.92 138048.81 151853.69 167039.06 183742.96
Profit (NETO cash flow)
34628.68 38091.55 41900.71 46090.77 50699.86
Breakeven -114164.13 -79535.45 -41443.90 456.81 46547.58 97247.44
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The end• Thank you for your attention!• Full business plan is available upon request
Haris Kvgic
+387 062 422 419
Edvin Sinanovic
+387 062 985 254
Business Plan