ABC Pte Ltd Business Plan

ABC Pte Ltd Business Feasibility Plan

Date plan completed: 17-09-2013

        


Contents

Executive Summary        

Business Description        

Market Analysis        

Internal and External Influences of your Business        

Marketing Strategies        

Financial Analysis        

Breakeven Analysis        

References        

Appendix I        


Executive Summary

To be drafted and completed after Financial plan in Term 3


Business Description

Business Name:

ABC Pte Ltd

Mission Statement:

ABC aims to provide quality performance compression wear at competitive prices and with excellent service.

Vision Statement:

In five years time, ABC will be manufacturing and distributing their own Asian sizing Performance Compression Wear. We will aim to be the online shop that sells the most comprehensive brand range of performance compression wear.

Objectives:

To be drafted and completed after Financial plan in Term 3

Business Description:

A new independent business in the online retail of SKINS brand compression wears. Product range includes sleeveless top, short sleeve top, long sleeve top, shorts, half tights, and long tights in the SPORTS, S.H.E., I.C.E., Youth and travel range.


Business Structure:

Sole Proprietor/ Trader, to register company with Accounting and Corporate Regulatory Authority (ACRA) on Bizfile as a sole proprietor. There are no other permits required at the moment.

Business Type:

Retail through the World Wide Web (e-business)

Location:

Blk 111 Ang Mo Kio Ave 3 #08-128 Singapore 560111

The operation would be based at the owner’s flat in Ang Mo Kio, Singapore for the start-up and may expand to an office space in the future.

Markets:

Local (Singapore)


Market Analysis

Your Market research results and your findings after evaluation of the results. You may include the following..

Target Market:

Competitors:

Pricing strategy:

Potential Demands:


Internal and External Influences of your Business

3 Internal Influences

  1. Product – High quality and reputable product that is tested for its effectiveness and is recommended and endorsed by the Australian Physiotherapy Association
  2. Finance/ Capital - Business with low capital layout, and low inventory to be kept, thus there is lesser risk involved
  3. Staff/ Management - Business might be affected if the owner is travelling, sick or have other urgent matters to attend (i.e. during the first year, as owner would have to take up another part-time job to sustain a living) as it is a one-man operation start-up initially

3 External Influences

  1. Technological - Introduction of Sg Wireless where there is free internet access at most part of Singapore till 2011 will encourage even more Singaporeans to shop online
  2. Competitive situations - Dependent on the Singapore sole distributor and the manufacturer in Australia. Thus, we are vulnerable to price change and availability
  3. Geographical - Limited target market as Singapore is a relatively small market in general

 

Marketing Strategies

Product

Price


Promotion

Place


Financial Analysis

Capital requirement and finance:

Projected Sales:

Profits:

 

ABC Projected Profit and Loss Statement for financial year ended on:

 

31 Aug 2010

31 Aug 2011

31 Aug 2012

Establishment Costs

 

 

Business name registration

$65

 

Computer

$1,500

 

Web design

$500

 

Advertising

$500

 

Stationary

$200

 

 

Total Establishment costs

$2,765

 

 

 

Sales

$64,153

$183,036

$522,222

 

Less: COGS

$42,769

$122,024

$348,148

 

 

Gross profit

$21,384

$61,012

$174,074

 

 

 

Expenses

 

Establishment costs

$2,765

$0

$0

 

Utilities

$600

$600

$600

 

Car instalment

$3,600

$3,600

$3,600

 

Petrol

$1,200

$1,200

$1,200

 

Advertising

$600

$600

$600

 

Internet, phone and mobile plan

$1,188

$1,188

$1,188

 

Depreciation of computer

$492

$492

$492

 

 

Total expenses

$10,445

$7,680

$7,680

 

 

Net profit before tax

$8,174

$53,332

$166,394

 

 

Tax at 20%

$8,174

$53,332

$43,262

 

 

Net Profit After Tax

$8,174

$53,332

$133,115

 

 

 

 

 

 

Notes:

  1. Business Tax rate is at 20% for the first SGD$ 100,000 for the first 3 years.
  2. Depreciation of the computer is 3 years, straight line depreciation

Breakeven Analysis

As mentioned earlier, the business has low overheads, low fixed expenditure and almost non-inventory requirement; thus, the business would have break even by the second month.  There is a high level of expenses in the first month due to the establishment cost. However, most of the cost would have stabilized and the business assumes that it remains somehow fixed for the rest of the three years. It is also assumed that delivery process will be made more efficient as the business progress over the next 3 years. Therefore, although there is a monthly sales increase over the next three years, the petrol expenses do not increase as number of delivery trips remains – while the quantity of goods delivered increases.


References

ABC news. (June 30, 2009). Speedo weighs swimmer’s interest in other suits. Retrieved August 5, 2009, from http://abcnews.go.com/Sports/wireStory?id=7972148

Accounting and Corporate Regulatory Authority. (2009, August). Registering a sole-proprietorship or partnership. Retrieved August 5, 2009, from http://www.acra.gov.sg/Services/Business/How_do_I_Register_a_Business.htm

Bizfile. (2007, December). ACRA’s one-stop business service portal. Retrieved August 5, 2009, from http://www.bizfile.gov.sg/

Body science compression Pty Ltd. (2009). BSc body science compression. Retrieved August 5, 2009, from http://www.bsccompression.com.au/

Business.gov.au. (2009, August). How do I write a business plan. Retrieved August 5, 2009, from http://www.business.gov.au/Business+Entry+Point/How-to+guides/Thinking+of+starting+a+business/How+do+I+write+a+business+plan.htm

CW-X conditioning wear. (2009). Retrieved August 5, 2009, from http://www.cw-x.com

Enterpriseone. (2009, August). Setting up in Singapore. Retrieved August 5, 2009, from http://www.business.gov.sg/

Horsley, M., Anderson, S., Biddle, I., Mulas, R. (2003). Heinemann business studies – Preliminary course. Malaysia: Mark Childs.

IDA Singapore. (2009). Wireless@SG programme. Retrieved August 5, 2009, from http://www.ida.gov.sg/Programmes/20061027174147.aspx?getPagetype=36

NSW small business. (2009, August). Guide to business planning. Retrieved August 5, 2009, from (http://www.smallbiz.nsw.gov.au/smallbusiness/Starting+in+Business/Business+Planning

Queensland employment, economic Development and innovation. (2009). How to draw a business plan. Retrieved August 5, 2009, from http://sd.qld.gov.au/virtual/dots/www/courses/welcome.cfm?CourseID=248

Singapore tax rates. (2009). Singapore tax rates amendments.  Retrieved August 5, 2009, from http://www.guidemesingapore.com/business/c648-singapore-tax-amendments.htm

Singtel Business. (2008). One stop business made easy.  Retrieved August 6, 2009, from http://business.singtel.com/upload_hub/sme/so_broadband.html

Skins. (2009). Sports, compression clothing, running  tights. Retrieved August 5, 2009, from http://www.skins.net/au/en/default.aspx

Tour de France, Skins.be forum. (2009). Breaking record legally. Retrieved August 5, 2009, from http://skinsusa.blogspot.com/2009_07_05_archive.html

2xu. (2009). Human performance multiplied. Retrieved August 5, 2009, from http://www.2xu.com/

ABC Projected Profit and Loss Statement for  financial year ended on 31 August 2010

 

 

 

 

 

 

 

 

 

Total

Month

1

2

3

4

5

6

7

8

9

10

11

12

 

 

 

Sales

$3,000

$3,300

$3,630

$3,993

$4,392

$4,832

$5,315

$5,846

$6,431

$7,074

$7,781

$8,559

$64,153

Less: COGS

$2,000

$2,200

$2,420

$2,662

$2,928

$3,221

$3,543

$3,897

$4,287

$4,716

$5,187

$5,706

$42,769

 

 

Gross profit before tax

$1,000

$1,100

$1,210

$1,331

$1,464

$1,611

$1,772

$1,949

$2,144

$2,358

$2,594

$2,853

$21,384

 

 

 

 

Expenses

 

Utilities

$50

$50

$50

$50

$50

$50

$50

$50

$50

$50

$50

$50

$600

Car instalment

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$3,600

Petrol

$100

$100

$100

$100

$100

$100

$100

$100

$100

$100

$100

$100

$1,200

Advertising

$50

$50

$50

$50

$50

$50

$50

$50

$50

$50

$50

$50

$600

Internet, phone and mobile plan

$99

$99

$99

$99

$99

$99

$99

$99

$99

$99

$99

$99

$1,188

Depreciation of computer

$41

$41

$41

$41

$41

$41

$41

$41

$41

$41

$41

$41

$492

 

 

Total expenses

$640

$640

$640

$640

$640

$640

$640

$640

$640

$640

$640

$640

$7,680

 

 

Profit before tax

$2,360

$2,660

$2,990

$3,353

$3,752

$4,192

$4,675

$5,206

$5,791

$6,434

$7,141

$7,919

$15,360

 

 

Profit after tax (20%)

$2,360

$2,660

$2,990

$3,353

$3,752

$4,192

$4,675

$5,206

$5,791

$6,434

$7,141

$7,919

$15,360

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appendix I

ABC Projected Profit and Loss Statement for  financial year ended on 31 August 2011

 

 

 

 

 

 

 

 

 

 

Month

1

2

3

4

5

6

7

8

9

10

11

12

Total

 

 

Sales

$8,559

$9,415

$10,357

$11,392

$12,532

$13,785

$15,163

$16,680

$18,348

$20,182

$22,201

$24,421

$183,036

Less: COGS

$5,706

$6,277

$6,905

$7,595

$8,354

$9,190

$10,109

$11,120

$12,232

$13,455

$14,800

$16,281

$122,024

 

 

Gross profit before tax

$2,853

$3,138

$3,452

$3,797

$4,177

$4,595

$5,054

$5,560

$6,116

$6,727

$7,400

$8,140

$61,012

 

 

 

 

Expenses

 

Utilities

$50

$50

$50

$50

$50

$50

$50

$50

$50

$50

$50

$50

$600

Car instalment

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$3,600

Petrol

$100

$100

$100

$100

$100

$100

$100

$100

$100

$100

$100

$100

$1,200

Advertising

$50

$50

$50

$50

$50

$50

$50

$50

$50

$50

$50

$50

$600

Internet, phone and mobile plan

$99

$99

$99

$99

$99

$99

$99

$99

$99

$99

$99

$99

$1,188

Depreciation of computer

$41

$41

$41

$41

$41

$41

$41

$41

$41

$41

$41

$41

$492

 

 

Total expenses

$640

$640

$640

$640

$640

$640

$640

$640

$640

$640

$640

$640

$7,680

 

 

Profit before tax

$7,919

$8,775

$9,717

$10,752

$11,892

$13,145

$14,523

$16,040

$17,708

$19,542

$21,561

$23,781

$175,356

 

 

Profit after tax (20%)

$7,919

$8,775

$9,717

$10,752

$11,892

$13,145

$14,523

$16,040

$17,708

$19,542

$21,561

$23,781

$175,356

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


ABC Projected Profit and Loss Statement for  financial year ended on 31 August 2012

 

 

 

 

 

 

 

 

 

 

Month

1

2

3

4

5

6

7

8

9

10

11

12

Total

 

 

Sales

$24,421

$26,863

$29,549

$32,504

$35,755

$39,330

$43,263

$47,589

$52,348

$57,583

$63,341

$69,675

$522,222

Less: COGS

$16,281

$17,909

$19,699

$21,669

$23,836

$26,220

$28,842

$31,726

$34,899

$38,389

$42,228

$46,450

$348,148

 

 

Gross profit before tax

$8,140

$8,954

$9,850

$10,835

$11,918

$13,110

$14,421

$15,863

$17,449

$19,194

$21,114

$23,225

$174,074

 

 

 

 

Expenses

 

Utilities

$50

$50

$50

$50

$50

$50

$50

$50

$50

$50

$50

$50

$600

Car instalment

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$3,600

Petrol

$100

$100

$100

$100

$100

$100

$100

$100

$100

$100

$100

$100

$1,200

Advertising

$50

$50

$50

$50

$50

$50

$50

$50

$50

$50

$50

$50

$600

Internet, phone and mobile plan

$99

$99

$99

$99

$99

$99

$99

$99

$99

$99

$99

$99

$1,188

Depreciation of computer

$41

$41

$41

$41

$41

$41

$41

$41

$41

$41

$41

$41

$492

 

 

Total expenses

$640

$640

$640

$640

$640

$640

$640

$640

$640

$640

$640

$640

$7,680

 

 

Profit before tax

$7,500

$8,314

$9,210

$10,195

$11,278

$12,470

$13,781

$15,223

$16,809

$18,554

$20,474

$22,585

$166,394

 

 

Profit after tax (20%)

$6,000

$6,651

$7,368

$8,156

$9,023

$9,976

$11,025

$12,178

$13,448

$14,843

$16,379

$18,068

$133,115

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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