Rephrase Business Plan

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Business Finance

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- Rephrase the attached Business plan.

- the currency must be changed from USD to OMR.

- include 6 references in CU Harvard Style.

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Executive summary The business considers recycling the waste electronic devices (in this case, a waste computers and mobile phones) to be sold later as refurbished. The company will recycle damaged computers and mobile phones with an aim to resell them to the market. Hence the company will be called the called Electronic Recycling L.L.C (ER Company). The business at first targets the people who live in Muscat governorate and the surrounding places; in the long run the market will go to as far as to the Arabian Gulf. The company would wish to go further and refurbish more electronics such as laptops, and smartphone to have a wider field. The business requires $ 15 million. The business projects net income as follows: Year 1- $ 450 million Year 2- $ 700 million and Year 3- $ 900 million Introduction The proposed ER business company shall be located in the city of Muscat, Oman. The main aim of this business is to curb disastrous environmental hazards resulting from waste electronic devices; particularly computers and mobile devices. The company will collect these waste with an aim of refurbishing them into new operating electronics to be resold to the market. The proposed business requires a minimum amount of USD. $ 15 million. This is what the owner needs to invest. However, other additional funds are expected from potential investors as well as loans from financial institutions. Loans used will comprise long term (Debentures- payable from 3-5) years as well as short term (payable for 6-to-12) months. The vision of the company is to see reduction in electronic pollution of Oman in the short-run and the global village in the long-run. The mission of the business is to improve the lives of each and every citizen of Oman, improve their standards of life and reduce potential hazards to their environment from waste electronics. Business Goals and Objectives The company’s objectives are both the short term as well as the long term objectives. Short-term business objectives I. Approach government sectors and contract them to recycle their waste electronic devices. II. For the first 3 years the company will try and reach the market in the area of Muscat governorate and the surrounding areas. Mid-term Business Objectives I. From the 3rd to the 7th year, the company will try and serve the market further to the entire Sultanate of Oman. Long-term Business Objectives • The company will try and cover more area of the market. it will market the company further to the Arabian Gulf which includes (United Arab Emirates, Saudi Arabia Kingdome, Bahrain, Kuwait State, Qatar State). This will happen in the 7th year and above the 10th year. • Another goal of this company is to make sure environmental pollution is reduced significantly by the project. Marketing Plan Product Our product will be the refurbished waste electronic and computers devices. The product will be a consumer-end product. The product will be much beneficial since it will be cheaper than the existing new computers. The use of these computers won’t be difficult since the use won’t be changed. The computers and mobile devices will be unique in the sense they will be made into new models that appeals the customer; such as new colors. There will be no cost of teaching the market hour to use the product since they already have the knowledge of using them. The cost of producing these products is also lower than producing new electronic devices. The company will use efforts to recycle the waste devices. Unique Selling Proposition The refurbished computers and mobile products will be sold to the market by use of wholesalers as well as retailers. The business will set up several wholesale branches where retailers will access the products from. The company shall reach to small traders through marketing to pass information regarding the products. The wholesale shops shall be wholly owned by the company. this is where retailers will access the products at some discounted prices. Customers will have the advantage of a doorstep-delivery. The company will offer delivery to customers who won’t be in a position to reach our outlets. The customer may also buy from our wholesale shops or the retail ones. This accessibility and delivery will make the customer to prefer our products and increase loyalty. The company will ensure the products that are let into the market are of great quality so as to earn trust from the customers. The products will have a longer durability than newly produced electronics. The aspect of price will be more looked into. The prices of these electronics will be slightly lower than the existing prices to ensure the customers chose us. The prices will not be firmly fixed, there will be a room for bargaining in order to win the customers. The margin of bargained price and the real price will be low to ensure profitability. From the current market, electronic customers tend to look into durability, availability of spare parts, delivery, aftersales service before purchasing any electronic device (McIvor & Humphreys, 2000). The company will produce more durable products that will appeal to consumers. the duration of products warranty is also a major factor in consumers’ decision in purchasing these electronics; the company will try to increase this duration in order to increase customer satisfaction. The company will also try to avail spare parts in order to cater for any breakdowns of the products. The company will further go ahead and offer free after sales services such as delivery and repair of devices in case the device’s warranty period is in existence. Motivating our customers will be a big boost to our sales. This will be done in terms of offers; for instance, during holidays or even during specified product promotion campaigns organized by the marketing department. As the business grows, we shall enquire from the customers themselves why they prefer our products. We shall also visit our competitors and try to ‘’shop’’ from them. It is in their shops that we shall also ask their customers of why they prefer the electronics and the what appeals to them; from this we shall know how to motivate our customers’ decision to buy. After a certain period of selling, we would offer a questionnaire to the customers and request them to rate our electronics. Cost per item The business will incur one type of cost. These are as follows: Variable product cost- (Buying cost)- the company will have to purchase waste electronic devices from various sources such as the government; therefore, this will be one of the cost. This cost will be variable from one source to another. This is estimated not to exceed $250.00. Estimated number of customers available Based on statistics provided by National Center for Statistics and Information (NCSI), the whole population in Sultanate of Oman is about 4,608,835. In Muscat governorate, the population is about 1,190,000. Hence, the estimate customers for the ER company is about 1000 clients’ monthly, around 12,000 in one year approximately. This estimate is taken the amount of 1% percentage from the population of Muscat. (Oman Population, 2016) To be more accurate there is an equation which is used in a marketing assessment, will estimate the number of customers that is wanted to be reached by the ER company. Market volume = Number of target customers * Penetration rate The population of Muscat has a population of 800,000. The surrounding areas are populated as below: Seeb-240,000. Bawshar-165,000. Therefore, the total number of target customers = 800,000+240,000+165,000 = 1,205,000. We shall assume a penetration rate of 80%. This is because nowadays it is very difficult for a company to operate without computers as well as the internet. The use of mobile devices for communication has also proved essential to everyone in the day-to-day life. The use of computer is even further more usable to the young generation in their studies as well as for research. Market volume = 1,205,000*80% = 964,000. Target customers The company will target customers based on the following characteristics: a) Age- for sure the products of the company will be sold to an adult; this is a person who has attained 18 years of age. These are the persons who are legally responsible for any financial obligations. This is according to the law. b) Sex- the gender of the customer doesn’t matter since both male and female can use the electronic devices. The company cannot limit its sales to any gender. c) Income bracket- the electronic devices will of course range from those with higher values up to those with lower values. This will cater for any income disparities among the population. d) The buying behavior of customers- there are people who don’t like spending too much. We will ensure they don’t worry to their finances by providing cheaper electronics which will enable them to save after purchasing. e) Perceived value of the proposed product/service to the customer. As the company recycles the electronic devices, more upgrades will be done to them. This upgrades shall tend the customer to perceive more value of the product. The service of the electronics shall be excellent. In fact, after the purchase, customers would feel that the price of the products matches the value of their money. The aim of the business is to create a perceived balance of the product and the value of the customer’s money. f) Perceived customer’s preference for the product over that of competitors- the company don’t have competitors currently in the proposed market. Competitors There are many electronic recycling companies in GGC. These are as follows: • Micro-LAN- to the proposed business relief, this company is operating on the line of mobile devices, thereby having a potential to the sale of computers. • 3M- this portrays a real competition. It actually refurbishes all electronic devices. Improved quality and accessibility strategies will be employed in order to compete for the market. Analysis of the external environment SocialThe people of Oman are mainly lined in a linguistic affiliation of Arab (Rajab & Patton, 2000). The company will try to engage employees from this region so as to fight any language barrier. A large percentage of Omanis reside from the rural areas; for this reason, many retail shops shall be spread to these areas in order to reach more customers. However, the many others who live in towns also do have land and property in the countryside. This is a major boost to the business since after they purchase and have a taste of our electronics, there is a high chance of them to market the products when they visit the countryside. This will boost information transfer. Oman has education to tertiary level; that is university. This shows part of the population is learned and therefore it won’t be the first time to use electronics. PoliticalOman is a type of monarchy; it is a sultanate. Sultan Qaboos is the head of the government and the state. There is the charge of the Royal Oman Police who maintain order, traffic, firefighting as well as immigration. This shows that laws are respected in our market. This will be a benefit to the business as it will be secure from crimes. In fact, disobedience to the civil law is unknown in Oman. Environmental and ecologicalThis business opts to reduce the large amount of hazardous and waste electronics that are discarded as trash. This has been happening since consumers have been replacing these devices for at least three times a year as they eagerly look for a better electronic. This will improve the environment of the land of Oman. Recycling these devices will avoid the raw materials inside them (which are toxic chemicals) from spoiling the ground, water and food supply; this has been the case for decades. If these devices were longer lasting, this effect could be reduced. The company looks forward to curb this by recycling them into more durable devices. Electronic addiction is into our radar. The use of these devices has proved to actually addict, not only the youth but even the adults. The company foresees to educate the customers on better usage of the devices to their benefits. This may be done through consumer education or through the manuals in the devices’ packages. Ecological relationships to the surroundings have actually broken down due to this addiction. People have valued electronic interaction more over actual face-to-face interaction. Technological Actually recycling these devices will improve use of technology in Oman. Research will be improved due to more use of computers as well as the mobile devices. This technology will also improve the education system of Oman. People will be able to access these devices cheaper than it is right now. This will improve their social welfare. Legal The business will of course follow the law of Oman. This includes legal registration and running of the business. The business has no intention to engage into unlawful activities. The main aim of this business is to improve the lives of Oman at large and working in accordance to their laws will be of good will. Industry The business will fall in the industry of Electronics in Oman. Specifically, this will be the Consumer Electronics. These are products of daily use. Nowadays mobile devices as well as computers are used in daily life for the purpose of running businesses, communication as well as even for entertainment purposes. The business will lie in the sector of Technology and industrialization. This is because electronics are viewed as technological devices. This will lead to more industrialization. Increase in computers will therefore increase the growth of technology in the region. The Micro market The business will employ the use of micro markets to reduce the costs of employing many employees since they are unattended. However, these will be mainly located in the towns for ease of monitoring and for security reasons. These micro markets will be characterized by use of pressure-sensitive shelves to record if a deice is taken off from them. Use of micro markets will increase the target customers. The devices will even have a higher price point leading to higher profit in various locations. Micro markets will increase accessibility of the devices by the consumer without requiring them to visit the larger stores or even the company itself. Use of micro markets will leverage technology by installing a system which will use cashless sales method. This will provide the business with even information on what and when to increase stock and marketing opportunities. Promotion Method Newspaper Online-Website Social Media DiscountedPrices. Outdoorand Transit Free Samples/Branded Gifts Type of advertising/promotion These will include Oman Daily Observer and the Muscat Daily The company will open a website in which the products will be advertised. Use of all social media accounts. The company will open accounts in all the social media. Measure of success Budget Number of customers who access the newspaper and turn up for purchase Number of customers who visit the website and turn up for the product purchase. Number of customers contacted by social media account and actually Purchases the devices. $300.00 per copy Offer a discount either in % or $. Number of customers who come after a certain period of discounted price. No budget Number of customers who come and enquire the product on the basis they saw it on the billboard. $90,000.00 (this is the whole price of the billboards for the next 3 years in the whole town of Muscat. Billboards by the road and signs or even posters. This will reach a lot of people who go to work or use the roads. Gives potential buyers a chance to test the product thereby enticing more to buy. $15,000.00 $40,000.00 Number of customers who buy the devices after a free $50,000.00 sample. Promotion and Revenues, Return and Reach. The above advertising and promotion strategies will have great contribution to the achievements of first revenues, return as well as reach: ✓ Newspaper-  The business will be new and a newspaper will actually help to establish the products to the potential customers. This first awareness will therefore create the first customers who will purchase the electronics in Muscat. The more people the advert reaches, the more likely sales the business is likely to make. This will generate revenues and returns thereby fulfilling one of our goals of income and an aim to reach many consumers as possible in Oman.   ✓ Online-  This is a case where our target consumers are those who access the internet. Many people nowadays tend to trust the internet so much. In their daily online activities, they are likely to find the business advert. This will increase the electronics information to them. They may decide to try and buy them. This will create sales thereby driving revenues to the business. Our quench to reach more customers will be satisfied in a way.   ✓ Social media-  This has proved very efficient of late. Many people are in the use of social media in communication (Heymann-Reder, 2012). It is very efficient to even answer customer questions via the social media platforms; clarification of electronics to consumers can increase their desire to buy from the business. This will amount to huge sales since most potential customers are in these platforms. This will also increase the percentage of reached customers. ✓ Discounted Prices-  This is the most effective to sway customers to the business. It is mostly likely that once consumers purchase the discounted electronics at some point; they will come back and bring along their friends as they tend to trust the products (Stremersch & Tellis, 2002). This will in time lead to a growth in sales, revenue and an increased share of the market.   ✓ Outdoor and transit-  If a customer sees a billboard daily on their day-to day activities; it is highly likely for them to think of the business when they think of buying an electronic. They will therefore pay you a visit for purchases.   ✓ Free samples/Branded Gifts-  This a major boost of creating customers. Everyone loves freebie which entices them to buy the product. Customers would really love to have a chance to use and test electronics for free. They will there likely buy and attract more customers. Furthermore, another alternative is to create some useful branded gifts to offer them during a purchase. This will lead to customers’ loyalty, which is a dream of the business. Production Plan The following describes how the electronic devices shall be refurbished. Description of transformation and technical feasibility • The company will first collect all damaged and used electronic devices to a warehouse; computers and mobile devices, to the refurbishing plant. They will be first cleansed of dirt and rust. • The devices would then be mended and corrected of their defects. This will be done by professional electronic technicians employed by the business. • Use of machines and equipment will be employed at this stage. They will be molded in different models to extinguish them from previous brands. • The refurbished devices will be newly branded with the company’s logo for sale. • The devices will be tested of any persevering defects and returned to the technicians in case of failure. • They will then be transported to another warehouse ready for packaging and for distribution • The devices will be well packed ready for shipment to the stores as well as to the micro markets. Required inputs Description Pieces of electronic waste computers and mobile devices Metal-this include copper, lead, magnesium, silicon, Platinum, gold and zinc. Gorilla Glass will be used Plastic Hard disks- these will be bought in bulk Production area- Rented Building Warehouse Technicians tools, refurbishing equipment computers, furniture and other machineries Shipping trucks Registration fee, Business license Total Required Quantity (per item/period; month) 10 million pieces 120 tons (combined metals) 12 ton • Shipping trucks • Computer and computer systems • Machinery and Equipment • Building/Leasehold improvements • Office equipment • Automobiles $792,000.00 1200 tones 1200 million pieces $1,200,000.00 1 rented building (1 year) $150,000.00 2 rented $100,000.00 Will only approximate total value 2 (buying once) $20.00 million For a 1-year period $2,400.00 - $274,548,400 The following equipment and assets will be useful: Refurbishing machinery $250.00million $1,800.00 Million $204,000.00 Capital Assets • Total cost/year $300,000.00 Organization and Management Plan The business will be managed by a group of staff in a chain of leadership. There will be a general manager, managers for all departments, foremen as well as the production employees. The business will start with one office in the city of Muscat. However, there will be other bigger stores(shops) from which retailers can access the electronics from. Organization Structure The chart below shows the structure of the organization. The company will be headed by a general manager who will oversee the whole operation of the company. All other managers will report him/her. Finance department- it will be led by one finance manager. There will be two senior accountants who will report to the finance manager. Finally, four junior accountants will work under the supervision of the senior accountants. Sales and marketing department- a sales manager and a marketing manager will be the senior figures in this department. They will manage six marketers and delegate roles to them. Production department- a production manager will lead this department. Four foremen will be the supervisors of the fifty technicians. Subordinate staff- it will compose of supportive staff numbered ten. This is illustrated below. General Manager Finance Dept. Sales & Marketing Dept. Finance manager 2 Managers Accountant s Production Dept. Dept. Production Manager 4 Production Foremen 2 senior accountants 4 Junior Subordinate 6 Marketers 50 Technician s 10 Staff Personnel complement Required No. Finance and Administration Position General Manager Finance Manager Senior Accountant 1 1 2 Accountants 4 Role description Qualifications Overseeing all administrative functions. Leading the whole team. Administrative efficiency. Makes decisions for the company. Chairing meetings of the company. Setting goals of the company. Masters in finance, accounting and management. Min of 10-year experience as a manager. Proficient Computer skills. Leadership skills. Oversees all financial obligations/health of the business. Data analysis. Give ideas of profitmaximizing. Producing financial reports. Masters in Finance, CPA, 10 years of experience Proficient computer skills. Good communication. Problem solving. Commercial aware Experience in finance controller, accounting Financial Reports. supervisor, senior Analysis of Financial accountant. Profitability. Awareness of business Accounting for the general trends. ledger. Deeply understanding Analyzing financial info. & of GAAP. summarizing financial status. Proficient computer skills BS degree in Accounting and Finance. Delegated responsibilities by CPA. the Senior Finance Managers. Proficient computer skills Quantitative skills. Extreme Accuracy. Monthly Budget $2,500 $2,000 $3,000 $3,200 Marketing and Sales Sales and Marketing Managers 2 Oversee the marketing department staff. Implementing marketing strategies. Knowledge of Muscat and Oman at large. Knowledge on strategies of marketing. $3,900 Marketers 6 Conduct Performance Analysis. Ensure effective promotion of the company. Market research. Motivating marketers. Proficient computer skills Project management. Experience in scope projects. Certified Search Engine Optimization. Degree in marketing. Market share Advertisement/Promotion Making sales Fieldwork at the market Contacting potential buyers Degree in marketing Proficient computer skills. Familiar with the whole city of Muscat $3,000 Planning & organizing production schedules. Assessing resource requirements. Determining quality control standards. Ensure employees meet health and safety regulations. Technical skills. Project Management skills. Leadership skills. IT and numerical skills. Team working skills. Meeting deadlines Masters in IT. $1,900 Masters in IT Team leader skills Team work skills Efficient communication skills. $3,200 Production/Operation Staff Production Manager 1 Operating Staff/Technicians 50 Ensure technical staff are present Supervise the refurbishment. Ensure smooth work. Report failure of machineries. Delegated responsibilities by the production manager. Refurbishing the devices. Taking care of the devices. Attending to the machineries Subordinate staff 10 These are supportive staff Total of staff 81 Production Foremen 4 Degree in IT. Technical skills Teamwork skills $37,500 Team work skills $3,000 $ 63,200 Legal requirements • Obtain permission from Omani law. • Obtain business permit from Oman Investment Committee. • Register at the commercial Registry of the Ministry of Commerce and Industry. • Obtain insurance for the company. 6. Finance and Accounting Plan All financial obligations and responsibilities will be handled from the department of finance. Projected income statement As can be seen from the above the business will be profitable. For the year ending December 18, 2018, there is a projected net income of $ 417,589,370. This is a very large profit. The business is able to meet its financial obligations in time. The return to sales is seen as 53.32%. this shows that actually the business is making progress. This has been projected to increase at a percentage of 2% per year. There is excellent return to assets as well as return to equity for the first period. This may happen since the electronics have been availed to the market for the first time. The business has been projected to pay a total of 25.6%. this will actually raise the GDP of Oman at large. This result shall be of good will for the company operations in the area. Electronic Recycling Company Ltd (ER L.L.C) Pro Forma Income Statement The values are in USA currency ($ USD) Sales for the 12 Month Period Ending Dec-18 Dec-19 Dec-20 $ $ $ 100. 100. 100. 783,137,0 1,269,619,2 1,828,251,6 0% 0% 0% 00 00 48 Less Cost of Sales: Material Labor (including benefits) Other Cost of Sales Total Cost of Sales Gross Profit $ 10,963,70 0 $ 1,001,088 $ 3,920,000 $ 15,884,78 8 $ 767,252,2 12 1.4 % $ 10,070,400 0.8 % $ 12,084,480 0.7 % 0.1 % 0.5 % $ 1,228,608 $ - 0.1 % 0.0 % $ 1,518,013 $ - 0.1 % 0.0 % 2.0 % $ 11,299,008 0.9 % $ 13,602,493 0.8 % $ 98.0 1,258,320,1 % 92 $ 99.1 1,814,649,1 % 55 99.2 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % Operating Expenses Personnel Depreciation computer refurbishment operations expenses mobile devices refurbishment expenses Power expenses Shipment/Transport Expenses Warehouse Storage expenses hired External labor delivery expenses Advertising and Promotions $ 8,496 $ 86,337 $ 240 $ 120 $ 840 $ 15,600 $ 480 $ 230 $ 27,300 $ 7,200 $ 10,425 $ 147,915 $ 288 $ 144 $ 1,008 $ 18,720 $ 576 $ 276 $ 32,760 $ 8,640 $ 12,880 $ 269,945 $ 346 $ 173 $ 1,210 $ 22,464 $ 691 $ 331 $ 331 $ 331 Rent expense Miscellaneous selling expense office supplies insurance bank charges financing charges Other Operating Expenses Total Operating Expenses Earnings Before Interest and Taxes Interest Expense Other Expense (Income) Earnings Before Taxes Income Taxes Net Income $ 902,000 $ 6,000 $ 3,000 $ 6,000,000 $ 780,000 $ 150,000 $ - 0.1 % 0.0 % 0.0 % 0.8 % 0.1 % 0.0 % 0.0 % $ 1,082,400 $ 7,200 $ 3,600 $ 7,200,000 $ 936,000 $ 180,000 $ - 0.1 % 0.0 % 0.0 % 0.6 % 0.1 % 0.0 % 0.0 % $ 331 $ 331 $ 331 $ 331 $ 331 $ $ - 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % $ 7,987,843 $ 759,264,3 69 $ 39,434 $ $ 1.0 % 0.8 % 0.0 % 0.0 % $ 310,357 $ 1,814,338,7 98 $ (79,181) $ - 0.0 % 0.0 % 0.0 % $ 9,629,952 $ 1,248,690,2 40 $ (42,384) $ - 97.0 % $1,248,732, 624 98.3 % $1,814,417, 979 99.2 % 43.6 % $ 561,913,68 1 $ 686,818,94 3 44.3 % $ 816,472,09 0 $ 997,945,88 9 44.7 % 759,224,9 35 $ 341,635,2 21 $ 417,589,7 14 97.0 % 53.4 % 98.3 % 54.0 % Return on Sales 53.32% 54.10% 54.58% Return on Assets 100.09% 62.25% 47.50% Return on Equity 100.00% 62.19% 47.47% 99.2 % 0.0 % 0.0 % 54.5 % Projected Cash Flow Statements Electronic Recycling Company Ltd (ER L.L.C) Pro Forma Statement of Cash Flows for the 12 Month Period Ending Dec-18 Dec-19 Dec-20 $ 417,589,714 $ 86,337 $ 686,818,943 $ 147,915 $ 997,945,889 $ 269,945 $ $ $ (989,653) 989,653 - $ $ $ (29,689,600) 29,689,600 - Cash Flows from Operations Net Income Depreciation Changes in Working Capital Accounts Receivable1 Inventories 1 Other Current Assets 1 Accounts Payable2 Other Current Liabilities 2 Net Cash Provided by Operating Activities $ $ $ 2,900 3,480 4,176 $ $ $ 101,767 (101,767) - $ $ $ 1,550 1,860 2,232 $ 387,103,015 $ 717,549,684 $ 998,222,242 $ 150,000 $ 100,000 $ 18,800 $ 110,000 $ 120,000 $ 55,700 $ 554,500 $ 180,000 $ 120,000 $ 22,560 $ 132,000 $ 144,000 $ 66,840 $ 665,400 $ 216,000 $ 144,000 $ 27,072 $ 158,400 $ 172,800 $ 80,208 $ 798,480 Cash Flows from Investing Activities Purchases of Property and Equipment Land Buildings Building/Leasehold Improvements Refurbishing Machinery & Equipment Automobiles Office Equipment/Other Total Property and Equipment Acquisition of Other Assets Net Cash Used in Investing Activities Cash Flows from Financing Activities Short-term Borrowings Repayment of Short-term Borrowings Long-term Borrowings Repayment of Long-term Borrowings Acquire (Repay) Other Liabilities Sale of Stock Payment of Dividends Net Cash Provided by (Used in) Financing Activities Net Increase (Decrease) in Cash Plus, Beginning Cash Ending Cash $ 13,940 $ 568,440 $ $ 665,400 $ $ 798,480 $ 293,000 $ 508,580 $ 1,500,000 $ 1,750,000 $ 5,200 $ $ 14,500 $ (474,880) $ 386,059,695 $ - $ 351,600 $ 610,296 $ 1,800,000 $ 2,100,000 $ 6,240 $ $ 17,400 $ (569,856) $ 716,314,428 $ 386,059,695 $ 1,102,374,12 3 $ 351,600 $ 610,296 $ 1,800,000 $ 2,100,000 $ 6,240 $ $ 17,400 $ (569,856) $ 996,853,906 $ 1,102,374,123 $ 386,059,695 $ 2,099,228,029 Cash inlets are expected from short term loans and sale of stock. The company also hires its automobiles during idle hours or even days. Cash outflows are inevitable since the company is in busy production process; this require addition of raw materials. The staff also incur daily expenses in terms of office stationery and meals. Travelling expenses are one of many that are incurred daily. From the cash flow statement (well viewed in the excel worksheet), it is evident that the cash inflows exceed the cash outflows. Thereby, any short term liabilities are solved without strain. Therefore, the company will meet its cash requirements for the daily operation. Projected Balance Sheet Electronic Recycling Company Ltd (ER L.L.C) Dec-17 Pro Forma Balance Sheet for the Period Ending Dec-18 Dec-19 Dec-20 Assets Cash Accounts Receivable Inventory Other Current Assets Total Current Assets Property and Equipment Land Buildings Building/Leasehold Improvements Refurbishing Machinery & Equipment Automobiles Office Equipment/Other Total Property & Equipment less accumulated depreciation Total Fixed Assets Other Assets Total Assets Liabilities and Equity Accounts Payable Short-term Loans Payable $ $ $ $ $ - $ 386,059,695 $ 989,653 $ 29,689,600 $ 1,102,374,123 $ 2,099,228,029 $- $- $- $- $ (2,900) $ 416,736,048 $ (6,380) $ 1,102,367,743 $ (10,556) $ 2,099,217,473 $ $ $ $ $ $ $ $ $ $ $ - $ 150,000 $ 100,000 $ 18,800 $ 110,000 $ 120,000 $ 55,700 $ 554,500 $ (86,337) $ 468,163 $ 13,940 $ 417,218,151 $ 330,000 $ 220,000 $ 41,360 $ 242,000 $ 264,000 $ 122,540 $ 1,219,900 $ (234,252) $ 985,648 $ 13,940 $ 1,103,367,331 $ 546,000 $ 364,000 $ 68,432 $ 400,400 $ 436,800 $ 202,748 $ 2,018,380 $ (504,197) $ 1,514,183 $ 13,940 $ 2,100,745,596 $ $ - $ 101,767 $ (215,580) $ $ (474,276) $ $ (732,972) Other Current Liabilities Total Current Liabilities Long-term Debt Other Liabilities Total Liabilities Equity $ $ $ $ $ - $ Stock and Paid-in Capital $ Retained Earnings $ Current Year Earnings $ Total Equity $ Total Liabilities and Equity Debt/Equity #DIV/0! Debt/Total Assets #DIV/0! $ 1,550 $ (112,263) $ (250,000) $ 5,200 $ (357,063) $ 3,410 $ (470,866) $ (550,000) $ 11,440 $ (1,009,426) $ 5,642 $ (727,330) $ (850,000) $ 17,680 $ (1,559,650) $ $ (14,500) $ 417,589,714 $ 417,575,214 $ 417,218,151 -0.1% -0.1% $ $ 417,557,814 $ 686,818,943 $ 1,104,376,757 $ 1,103,367,331 -0.1% -0.1% $ $ 1,104,359,357 $ 997,945,889 $ 2,102,305,246 $ 2,100,745,596 -0.1% -0.1% Please see the excel worksheet for better viewing. The above spread sheet shows the projected balance sheets of future years (year 2 & year 3). There is a steady financial position of the business for the projected three years. The first year’s financial position is approximately $417,218,151.00. This is a promising case showing that at the beginning of period 2, there will be no financial strain. This projection is the same for even year 3. The business is not at all at the risk of going bankruptcy or failure to run. This financial projection gives hopes of a more stable business in future. the projection estimates the growth of the financial position (standings) of 1.2 per the end of each year. Financial Assumptions Variable Fixed Total $260 $36,000 $36260 - $15,600 $15,600 - $2,7300 $2,7300 $7,200 $495,000 $502,200 - $902,000 $902,000 $86,337 $86,337 a. Marketing Expenses Salaries Travel and Transport Delivery Expenses Advertising and Promotions Rent Expense Depreciation Miscellaneous selling expense - $6,000 $6,000 Other expenses - - - b. General and Administrative expenses Salaries $6175 $722,400 $728,575 Office supplies $3,000 - $3,000 - $6,000,000 $6,000,000 Bank charges $780,000 - $780,000 Financial charges $150,000 - $150,000 - - - Insurance Other expenses The above are financial assumptions for a period of one year. The variable ones are expected to fluctuate during the whole financial period in accordance to prices. Prices can increase or decrease according to the movement of the market in Muscat. The fixed include salaries of which it is made known to the employees during hire. Any salaries increases are the ones considered as variable; benefits security funds also fall under this category. Breakeven sales Electronic Recycling Company Ltd (ER L.L.C) Pro Forma Breakeven Analysis for the 12 Month Period Ending Dec-18 Dec-19 Dec-20 $ 783,137,000 $ 7,479,861 $ 2,680,730 $ 102,502,396 $ 112,662,987 $ 1,269,619,200 $ 4,458,173 $ 3,236,952 $ 168,561,389 $ 176,256,514 $ 1,828,251,648 $ 5,365,097 $ 137,540 $ 244,917,873 $ 250,420,510 $ 670,474,013 $ 8,404,927 $ 5,307,113 $ 239,172,259 $ 252,884,299 $ 417,589,714 $ 1,093,362,686 $ 6,840,835 $ 6,393,000 $ 393,309,908 $ 406,543,743 $ 686,818,943 $ 1,577,831,138 $ 8,237,396 $ 172,817 $ 571,475,036 $ 579,885,249 $ 997,945,889 $ 0.14 $ 0.86 $ 0.14 $ 0.86 $ 0.14 $ 0.86 85.61% 86.12% 86.30% $ 14,604,101.16 $ 14,264,197.75 $ 8,437,647.91 Summary of Income Statement by Cost Type Sales Variable Costs Variable Cost of Sales Variable Operating Costs Variable Interest, Taxes and Other Total Variable Costs Contribution to Fixed Costs Fixed Costs Fixed Cost of Sales Fixed Operating Costs Fixed Interest, Taxes and Other Total Fixed Costs Net Profit (Loss) Margins Analysis Variable Cost per $ of Sales Amount available per $ of Sales to Pay Fixed Costs Contribution Margin Breakeven Analysis Breakeven Sales based on EBIT Average Sales Price Per Unit Sold $ 602.41 $ 813.86 $ 976.63 24,243 17,527 8,640 $ 295,391,074.6 4 $ 602.41 $ 472,066,585.0 0 $ 813.86 490,349 580,034 Breakeven Sales Volume in Units Based on EBIT Breakeven Sales Based on All Expenses Average Sales Price Per Unit Sold $ 671,941,192.82 $ 976.63 Breakeven Sales Volume in Units Based on EBIT 688,020 The above table shows the business break-even point (analysis). This is the non-profit or nonloss point (Ross, Westerfield, Jaffe & Roberts, 2002). At this point, the business’s total cost and revenues is as follows: Total of fixed costs and variable costs = Total Revenue Year one can clearly show that the break-even sales based on all expenses are $ 295,391,074.64. The same is shown on the projection for the remaining two years. This is a good show of how large the business will operate without making profit nor losses; is a point where the company can actually be independent. Financial Feasibility The business desires to raise funds for its start-up and operational capital as follows: • Potential investors • Owners capital • Short-term and long-term Loans from banks and other financial organizations. • Contracts from corporations • Return to investment • Return to capital • Debentures Conclusion The proposed business has a potential to be succeed. The idea of assembling waste electronics is brilliant. This will be of course of much welcome for it is going to enhance the environments. Existence of few competitors in this market gives the business chances of great survival. The introduction of this refurbishing business; is likely to have improved quality of electronic devices from the other companies. Muscat is actually a more civilized city with no political or any other conflicts. Upon acquisition of the required documents the business may start. The above financial projection is a promising one. The financial projection shows a promising end of the first financial year. Any investors interested in this company will actually pull in after the end of this year having monitored the actions of the company for the whole year. One of the goal of the business is to contract the government of Oman. As long as the business shows its commitments and generate visible incomes, the government would be pleased to contract it; this will be a success. With the projected great growth of this business (by financial projections in the project) it is likely for the business to accomplish its long term growth of targeting the entire region of Sultanate of Oman. At last, the major goal of the business is to improve the environment of Oman by curbing hazards resulted from trashed waste electronics. References Heymann-Reder, D. (2012). Social Media Marketing. Addison-Wesley Verlag. McIvor, R. T., & Humphreys, P. K. (2000). A case-based reasoning approach to the make or buy decision. Integrated Manufacturing Systems, 11(5), 295-310. Rajab, A., & Patton, M. A. (2000). A study of consanguinity in the Sultanate of Oman. Annals of human biology, 27(3), 321-326. Ross, S. A., Westerfield, R., Jaffe, J. F., & Roberts, G. S. (2002). Corporate finance (Vol. 7). New York: McGraw-Hill/Irwin. Stremersch, S., & Tellis, G. J. (2002). Strategic bundling of products and prices: A new synthesis for marketing. Journal of Marketing, 66(1), 55-72. Oman Population. (2016, November 20). Retrieved August 23rd, 2017, from http://worldpopulationreview.com/countries/oman-population/
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Business Plan
Name
University Details
Date of submission

Executive Summary
The organization plans to recycle damaged electronic devices such as computers and
mobile phones and later resell them as refurbished items. The primary objectives of the
company will involve recycling the electronic waste devices (computers and mobile phone)
with an aim to sell them once again. The company will be identified as Electronic Recycling
Company. The organization targets people living in Muscat Governorate and the surrounding
locations. However, the long-term target market goes as far to the Arabian Gulf. Additionally,
the enterprise also plans to refurbish other electronic gadgets including laptops and
Smartphone to develop a more comprehensive working platform. The business requires
approximately 6 OMR million to start its scheme. Below is the gross income of the company
projects;
Year 1 – 176 OMR million
Year 2 – 273 OMR million
Year 3 – 351 OMR million

Introduction
The proposed company shall be sited in the Oman, Muscat city. The primary goal of
the company is to control environmental exposure from the damaged electronic devices
especially mobile phones and computers. In this case, the company will collect the damaged
components and restore them to new operating devices and resell them into the market once
again. As stated earlier, the owner of the company requires a minimum of 6 OMR million to
set off all the projects. However, the funds are expected to pop up from potential investors or
financial institutions offering loans. Notably, acceptable credits will involve long-term
agreement payable from 3-4 years or rather short-term loans payable in 6 to 12 months. The
vision of the enterprise is to ensure reduction of electronic pollution in Oman in short-run and
the global environment in the long-run. The mission of the business is to improve the living
standard of every citizen in the country and reduce the environmental hazards developed by
electronic wastes.
Business Goals and objectives
The primary objectives of the company are both short-term and long-term as well.
Short-term objectives
➢ Get in touch with the electronic market of Muscat governorate and the surrounding
area in the first 3 years.
➢ Contact governmental sectors and ask them to help in recycling the electronic devices
Mid-term Business Objectives
➢ Serve the entire sultanate of Oman’s electronic market during from the 3rd to the 7th
year of the business

Long-term Objectives
➢ Market the products further to the Arabian Gulf countries which include Saudi Arabia,
United Arab Emirates, Kuwait, Bahrain, Qatar State, and Kingdome. The activity
should take place in the 7th to 10th year of business.
➢ Make sure that the environmental pollution is reduced significantly by the project in
the surrounding countries.
Marketing plan
Product
The products of the organization will be made of refurbished computer and phone
devices. The products will be of great benefit as they will be less costly than new devices.
The electronic devices will also be easy to use they will use the same software they’ve been
using there before. Mobile and computer outlook will be unique in the sense that they will be
made of different colors and shapes which attracts the eyes of the customers. There will be
little or no costs of teaching people how to use the gadgets as they have been using them there
before. The manufacturing cost is also lower than producing new computer of mobile
devices. Moreover, the ER Inc. will require little effort to recycle the waste devices.
Unique Selling Proposition
The renovated computer and mobile products will be resold once again in the markets
in retail and wholesale margins. In this case, the organization will set up numerous wholesale
shops where the retail buyers can purchase the products.
Marketing diversity shall enable the company to reach out small business oriented
traders and pass significant information regarding the quality of the products. The ER

Company shall own most of the wholesale shops. In this way, the retailers will get précised
discount on every product they buy.
ER Company is set to offer product delivery to customers who will be unable to reach the
outlet of the wholesale shops. Therefore, the customer will gain an added advantage over a
doorstep-delivery. However, the customers may opt to buy the products from the wholesale
or retail shops and choose to use their own means of product delivered. As a result,
accessibility and delivery will persuade customers to prefer the products and increase their
constancy.
The firm will ensure that the products brought into the market are of excellent quality
to earn deep trust with the customers. The products will also pose great durability traits than
the newly manufactured devices. The price of the products will also be observed to ensure
that the products are affordable. Noteworthy, the cost of the devices will be relatively lower
than the newly manufactured products to make sure that most of the customers choose
purchasing products from our company. The price of the products will be favorable as there
will be room for bargaining to attract more customers. However, the margin of the bargaining
price will be considerably low to ensure that the company gains significant profits.
According to Michman, (2003), the current market trends show that most of the
customers tend to observe the durability of the device, spare parts availability, after sales
services, and delivery customs before buying the gadgets. In this case, the company will
manufacture durable products meant to satisfy needs of the customers. Therefore, the duration
of product warrant is a significant factor to consider when selling the electronic products. The
company will increase the validity of the warrant offer to the products to increase customer
satisfaction. Additionally, the company will make an effort to avail the gadgets spare parts to
the market for repair the gadgets in case they break down. The company will also offer aftersales services such a free delivery and device repair in case the warrant of the gadget is still

valid. In general, I believe that motivating the customers will be of great benefit to boost our
rummage sales.
Besides, there will be other offers during holidays or even during a specific period of
promotional campaigns structured by the marketing division. As the company grows, the
markers shall conduct forums to enquire different views from the customers regarding the
products quality and the kind of services they would prefer. We shall also visit our
competitors and try to shop from them to enquire from their customers why they prefer the
brand. In this way, I believe the company shall have a glimpse of how to persuade our
customers to buy the products. After several years of business, the firm shall formulate a
questionnaire to our customers asking them to products alon...


Anonymous
Really great stuff, couldn't ask for more.

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