Export Automobile Parts Business Plan

[15/11/2011]
[DREAM
AUTO
PARTS
LTD.]
[BUSINESS PLAN ON EXPORTING

AUTOMOBILE PARTS]
Presented by [ Sagnik Roy] M.B.A. 3rd Semester (Roll No:19)
Table of Contents
1.0 Executive Summary .......................................................................................... 1
Chart: Highlights ............................................................................................... 1
1.1 Objectives ...................................................................................................... 2
1.2 Mission ........................................................................................................... 2
2.0 Company Summary ........................................................................................... 2
2.1 Company Ownership ...................................................................................... 2
2.2 Start-up Summary .......................................................................................... 3
Table: Start-up .................................................................................................. 3
Table: Start-up Funding..................................................................................... 4
Chart: Start-up .................................................................................................. 6
3.0 Products ............................................................................................................ 6
4.0 Market Analysis Summary ................................................................................. 6
4.1 Market Segmentation ..................................................................................... 7
Table: Market Analysis ...................................................................................... 7
Chart: Market Analysis (Pie) .............................................................................. 8
4.2 Industry Analysis ............................................................................................ 8
4.3 Target Market Segment Strategy ................................................................... 8
4.4 Competition and Buying Patterns ................................................................... 8
5.0 Strategy and Implementation Summary ............................................................ 9
5.1 Competitive Edge ........................................................................................... 9
5.2 Sales Forecast ................................................................................................ 9
Chart: Sales Monthly ......................................................................................... 9
Chart: Sales by Year ........................................................................................ 10
Table: Sales Forecast ...................................................................................... 10
5.3 Milestones .................................................................................................... 11
Chart: Milestones ............................................................................................ 11
Table: Milestones ............................................................................................ 11
5.4 Marketing Strategy ....................................................................................... 12
6.0 Management Summary ................................................................................... 12
6.1 Personnel Plan .............................................................................................. 12
Table: Personnel.............................................................................................. 12
7.0 Financial Plan .................................................................................................. 13
7.1 Break-even Analysis ..................................................................................... 13
Page 1
Table of Contents
Chart: Break-even Analysis ............................................................................. 13
Table: Break-even Analysis ............................................................................. 13
7.2 Projected Profit and Loss .............................................................................. 14
7.2 Projected Profit and Loss .............................................................................. 14
Table: Profit and Loss ...................................................................................... 14
Chart: Profit Monthly ....................................................................................... 15
Chart: Profit Yearly .......................................................................................... 16
Chart: Gross Margin Monthly ........................................................................... 16
Chart: Gross Margin Yearly.............................................................................. 17
7.3 Projected Cash Flow ..................................................................................... 17
Chart: Cash ..................................................................................................... 17
Table: Cash Flow ............................................................................................. 18
7.4 Projected Balance Sheet .............................................................................. 19
7.4 Projected Balance Sheet .............................................................................. 19
Table: Balance Sheet ...................................................................................... 20
7.5 Business Ratios ............................................................................................ 21
7.5 Business Ratios ............................................................................................ 21
Table: Ratios ................................................................................................... 21
Table: Sales Forecast .............................................................................................. 1
Table: Personnel ...................................................................................................... 1
Table: Personnel ...................................................................................................... 1
Table: General Assumptions .................................................................................... 2
Table: General Assumptions .................................................................................... 2
Table: Profit and Loss .............................................................................................. 2
Table: Profit and Loss .............................................................................................. 2
Page 2
Executive Summary
D.A.P. Exports is a business that exports automobile parts and auto lubricants to Jamaica and
other countries including Venezuela, Columbia and Ecuador. Many of the company's shipments
combine American-made products with foreign parts with some re-packaging and labeling.
Auto part sales is currently a $100 million industry in Latin America and the Caribbean. In these
countries, a majority of the automobiles were manufactured in the 1980's. Finding replacement
parts for these autos has become a difficult process as auto makers focus on cars produced in
the last ten years.
D.A.P. Exports has established an extensive network of customer contacts in the region. Sagnik
Roy, owner of D.A.P Exports, has two years of experience selling consumer products in Latin
America and the Caribbean. Sagnik has been a marketing person for HUL Products, & TATA
motors.
D.A.P. Exports will contract with the region's taxi companies to provide auto parts and auto
lubricants at wholesale prices. The taxi companies will either use the parts to repair their own
vehicles or they will sell the parts to consumers. D.A.P Exports will also sell auto parts to auto
part stores in the region.
Chart: Highlights
Highlights
`900,000
`800,000
`700,000
`600,000
Sales
`500,000
Gross Margin
`400,000
Net Profit
`300,000
`200,000
`100,000
0
Year 1
Year 2
Year 3
Page 1
Objectives
D.A.P. Exports' objectives are as follows:
Achieve handsome sales revenues during first year of operation.
Achieve a customer base of 100 taxi companies in the region.
Increase sales modestly during the second year of operation.
Mission
The mission of D.A.P. Exports is to be the auto parts provider of choice with the region's taxi
companies.
Company Summary
D.A.P. Exports is a business that exports automobile parts and auto lubricants to Jamaica and
other countries including Venezuela, Columbia and Ecuador. Many of the company's shipments
combine American-made products with foreign parts with some re-packaging and labeling.
The company will be organized as a limited liability partnership.
D.A.P. Exports has an 8,000 square foot facility in Shibpur, Howrah. The facility is located near
the Kolkata hub critical to our important markets. It will keep costs in control as well as enabling
fast and economical access to our key markets for company-related business.
Company Ownership
D.A.P. Exports is an LLC partnership owned by Sagnik Roy and a silent partner (name Payel
Roy).
Page 2
Start-up Summary
The start-up expense for D.A.P. Exports is focused primarily on inventory and repackaging
equipment. Sagnik Roy will personally invest in the company. The silent partner will invest
additional funds. In addition, Sagnik will also secure a long-term loan.
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal
`10,000
Stationery etc.
`1,000
Brochures
`2,000
Insurance
`2,000
Rent
`2,000
Expensed Equipment
`50,000
Total Start-up Expenses
`67,000
Start-up Assets
Cash Required
Start-up Inventory
`83,000
`100,000
Other Current Assets
`0
Long-term Assets
`0
Total Assets
`183,000
Total Requirements
`250,000
Page 3
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund
`67,000
Start-up Assets to Fund
`183,000
Total Funding Required
`250,000
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
`100,000
`83,000
`0
`83,000
`183,000
Liabilities and Capital
Liabilities
Current Borrowing
Long-term Liabilities
`0
`100,000
Accounts Payable (Outstanding Bills)
`0
Other Current Liabilities (interest-free)
`0
Total Liabilities
`100,000
Page 4
Capital
Planned Investment
James Dunn
Silent Partner
Additional Investment Requirement
`50,000
`100,000
`0
Total Planned Investment
`150,000
Loss at Start-up (Start-up Expenses)
(`67,000)
Total Capital
`83,000
Total Capital and Liabilities
`183,000
Total Funding
`250,000
Page 5
Chart: Start-up
Start-up
`200,000
`180,000
`160,000
`140,000
`120,000
`100,000
`80,000
`60,000
`40,000
`20,000
0
Expenses
Assets
Investment
Loans
Products
D.A.P. Exports products are the following:
Transmission parts
Engine parts
Electrical parts
Engine lubricants
Market Analysis Summary

Auto part sales is a $100 million dollar industry in Latin America and the Caribbean. In these
countries, a majority of the automobiles were manufactured in the 1980s. Finding replacement
parts for these autos has become a difficult process as auto makers focus on cars produced in
the last ten years.
Typically, old cars are used as a source of parts once they can no longer be repaired. The major
obstacle to accessing the market is the sparse number of auto part stores in the region where
the prices for auto parts are high. Most of these auto stores focus on the upscale customer and
don't carry a wide range of parts for the older autos.
D.A.P. Exports will sell parts to auto stores but we will also pursue a new distribution network as
well. The largest buyers of auto parts in the region are taxi companies. D.A.P. Exports has
established an extensive network of contacts with these companies, and we will sell directly to
them.
Page 6
Market Segmentation
D.A.P. Exports will focus on the following target customers:
Taxi companies
Auto part stores
It is expected that individuals will also purchase from D.A.P., but the repeat business, lower
price sensitivity and larger volume per order mean that stores and taxi services will be more
attractive customers for D.A.P.
Table: Market Analysis
Market Analysis
Year 1
Potential
Customers
Year 2
Year 3
Year 4
Year 5
Growth
CAGR
Taxi Companies
10%
2,000
2,200
2,420
2,662
2,928
10.00%
Auto Part Stores
8%
4,000
4,320
4,666
5,039
5,442
8.00%
8.68%
6,000
6,520
7,086
7,701
8,370
8.68%
Total
Page 7
Chart: Market Analysis (Pie)
Industry Analysis
Currently, the markets are too small to attract many competitors. The auto parts shops in the
region are not expanding to meet the demand for parts for older cars. They are instead focusing
on the newer cars that are being imported into the countries by wealthy individuals.
Utilizing the taxi services as a distribution network as well as primary customers is an excellent
strategy to capture market share of a segment that is currently being ignored by bigger players.
Target Market Segment Strategy

It is estimated that there are over 25,000 vehicles in the region that are used by taxi services.
And that number is growing.
The taxi firms are excellent target customers for D.A.P. Export products. First, they represent
the largest buying block in our target countries. In addition there is no established channel for
them to purchase parts for their cars at this time.
By buying direct from D.A.P. Export, they reduce the cost of parts and they get exactly what
they need quickly.
Although many of the taxi drivers are independent or work for small companies, the informal
network within this group is extensive. There is a lot of downtime in this business, where drivers
are waiting for fares. They will chat to friends/colleagues about their cars and their work. We will
benefit from this through word-of-mouth recommendations.
Competition and Buying Patterns

Without much competition, the key to maintaining the customer base is the right parts, at a
reasonable price, delivered quickly. As D.A.P. Exports meets customer's demand for parts in a
timely manner, sales will grow. The company will be able to strengthen the business
relationships that will be critical when competition does emerge.
Page 8
Strategy and Implementation Summary

D.A.P. Exports will offer a 15% discount on all purchases of `1,000 or more. We will also
have two salespeople based in Latin America and the Caribbean. Our focus will be to establish
our future on a strong relationship with the region's taxi services.
Sagnik has established export contacts in Latin America and the Caribbean, that will make the
process of developing an export channel for car parts much easier. In these countries, much
business in done by a handshake and word of mouth, rather than formal contracts. His
experience and contacts will be invaluable in this environment.
Competitive Edge
The products that D.A.P is selling are made for older cars, and the trend in this country is
towards newer cars, therefore domestic demand for these parts is falling. For this reason, James
will be able to negotiate excellent prices on the products that he will sell. He will also order in
bulk which will further increase his negotiating leverage.
The other competitive edge of D.A.P. Exports is that we can assemble a product package that is
exactly what a specific customer wants. When the taxi service buys directly from D.A.P. Exports,
they will receive the highest quality product at the lowest price. Previously, because of the lack
of an organized, established channel, car owners had to spend time shopping around for parts.
Therefore their cars would be off the road for longer periods of time--every day costing them
more lost revenue.
Sales Forecast
The following is the sales forecast for three years.
Chart: Sales Monthly
Sales Monthly
`90,000
`80,000
`70,000
`60,000
Auto Parts
`50,000
Auto Lubricants
`40,000
Other
`30,000
`20,000
`10,000
`0
1
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8
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9
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10
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11
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Page 9
Chart: Sales by Year
Sales by Year
`900,000
`800,000
`700,000
`600,000
Auto Parts
`500,000
Auto Lubricants
`400,000
Other
`300,000
`200,000
`100,000
$0
Year 1
Year 2
Year 3
Table: Sales Forecast
Sales Forecast
Year 1
Year 2
Year 3
Auto Parts
`410,000
`480,000
`550,000
Auto Lubricants
`186,000
`230,000
274,000
`0
`0
`0
`596,000
`710,000
`824,000
Year 1
Year 2
Year 3
`200,000
`240,000
`275,000
`93,000
`115,000
`137,000
`0
`0
`0
`293,000
`355,000
`412,000
Sales
Other
Total Sales
Direct Cost of Sales

Auto Parts
Auto Lubricants
Other
Subtotal Direct Cost of Sales
Page 10
Milestones
The accompanying chart and table lists important program milestones, with dates and
managers in charge, and budgets for each. The milestone schedule indicates our emphasis on
planning for implementation.
Chart: Milestones
Milestones
Facility Set-up
Inventory Set-up
Marketing Campaign
May `11
Jun
Table: Milestones
Milestones
Milestone
Facility Set-up
Inventory Set-up
Marketing Campaign
Totals
Start Date
End Date
Budget
Manager
Department
5/1/2011
5/20/2011
`20,000
Sagnik Roy
Marketing
5/1/201
5/20/2011
`100,000
Sagnik Roy
Department
5/1/2011
6/15/201
`20,000
Sagnik Roy
Department
`140,000
Page 11
Marketing Strategy
During the months of May and June the regional salespeople will deliver presentations to taxi
firms and auto parts stores in the region. D.A.P. Export will offer a 15% discount on all
purchases over `1,000.
The key to the marketing strategy is continuous follow-up with customers so we can anticipate
the parts inventory that will be needed in the future.
6.0 Management Summary
Sagnik Roy, owner of D.A.P Exports, will manage the business. In addition he has contacts with
people and businesses that can only be gained from years of living or working in a country.
Sagnik has been a marketing person for HUL, and TATA motors. Sagnik has
excellent management skills. In his last position he managed a sales staff of five people, and
each year the team beat its sales quota by more than 10%. He was successful in motivating the
best performance of each staff member.
Sagnik has also had experience in running a small business in the past.
Personnel Plan
D.A.P. Exports' personnel are as follows:
Sagnik Roy
Facility staff (4)
Sales staff (2)
Table: Personnel
Personnel Plan
Year 1
Year 2
Year 3
Sagnik Roy
`36,000
`39,000
`42,000
4 Facility Staff
`86,400
`94,000
`102,000
2 Sales Staff
`72,000
`80,000
`88,000
Total People
Total Payroll
`194,400
`213,000
`232,000
Page 12
Financial Plan
The following is the financial plan for D.A.P. Exports.
Break-even Analysis
The monthly break-even point, based on average monthly running costs and estimated variable
costs of sales is shown in the table and chart below.
Chart: Break-even Analysis
Break-even Analysis
`20,000
`16,000
`12,000
`8,000
`4,000
`0
(`4,000)
(`8,000)
(`12,000)
(`16,000)
(`20,000)
`14,000
`0
`7,000
`28,000
`21,000
`42,000
`35,000
`49,000
`56,000
`63,000
`70,000
`77,000
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even
`42,743
Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost
49%
`21,730
Page 13
Projected Profit and Loss

The following table and charts highlight the projected profit and loss for three years.
Table: Profit and Loss
Pro Forma Profit and Loss

Year 1
Year 2
Year 3
Sales
`596,000
`710,000
`824,000
Direct Cost of Sales
`293,000
`355,000
`412,000
`0
`0
`0
Total Cost of Sales
`293,000
`355,000
`412,000
Gross Margin
`303,000
`355,000
`412,000
50.84%
50.00%
50.00%
`194,400
`213,000
`232,000
`6,000
`10,000
`15,000
Depreciation
`0
`0
`0
Leased Equipment
`0
`0
`0
`7,200
`8,000
`9,000
`0
`0
`0
Rent
`24,000
`24,000
`24,000
Payroll Taxes
`29,160
`31,950
`34,800
`0
`0
`0
Other Production Expenses
Gross Margin %
Expenses
Payroll
Sales and Marketing and Other
Expenses
Utilities
Insurance
Other
Page 14
Total Operating Expenses
`260,760
`286,950
`314,800
Profit Before Interest and Taxes
`42,240
`68,050
`97,200
EBITDA
`42,240
`68,050
`97,200
`10,000
`10,000
`10,000
`9,672
`17,415
`26,160
`22,568
`40,635
`61,040
3.79%
5.72%
7.41%
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales
Chart: Profit Monthly
Profit Monthly
`15,000
`12,000
`9,000
`6,000
`3,000
$0
(`3,000)
(`6,000)
(`9,000)
(`12,000)
(`15,000)
Month 1
Month 3
Month 5
Month 7
Month 9
Month 11
Month 2
Month 4
Month 6
Month 8
Month 10
Month 12
Page 15
Chart: Profit Yearly
Profit Yearly
`60,000
`50,000
`40,000
`30,000
`20,000
`10,000
`0
Year 1
Year 2
Year 3
Chart: Gross Margin Monthly
Gross Margin Monthly

`50,000
`45,000
`40,000
`35,000
`30,000
`25,000
`20,000
`15,000
`10,000
`5,000
`0
Month 1
Month 3
Month 5
Month 7
Month 9
Month 11
Month 2
Month 4
Month 6
Month 8
Month 10
Month 12
Page 16
Chart: Gross Margin Yearly

Gross Margin Yearly
`400,000
`350,000
`300,000
`250,000
`200,000
`150,000
`100,000
`50,000
`0
Year 1
Year 2
Year 3
Projected Cash Flow

The following table and chart highlight the projected cash flow for three years.
Chart: Cash
Cash
`100,000
`80,000
`60,000
Net Cash Flow

`40,000
Cash Balance
`20,000
`0
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Page 17
Table: Cash Flow

Pro Forma Cash Flow
Year 1
Year 2
Year 3
Cash Sales
`149,000
`177,500
`206,000
Cash from Receivables
`324,550
`509,078
`594,578
Subtotal Cash from Operations
`473,550
`686,578
`800,578
Cash Received
Cash from Operations
Additional Cash Received

Sales Tax, VAT, HST/GST Received
`0
New Current Borrowing
`0
`0
`0
New Other Liabilities (interest-free)
`0
`0
`0
New Long-term Liabilities
`0
`0
`0
Sales of Other Current Assets
`0
`0
`0
Sales of Long-term Assets
`0
`0
`0
New Investment Received
`0
`0
`0
`473,550
`686,578
`800,578
Year 1
Year 2
Year 3
Subtotal Cash Received
Expenditures
`0
`0
Expenditures from Operations
Page 18
Cash Spending
`194,400
`213,000
`232,000
Bill Payments
`265,680
`510,321
`535,986
Subtotal Spent on Operations
`460,080
`723,321
`767,986
Sales Tax, VAT, HST/GST Paid Out
`0
`0
`0
Principal Repayment of Current

Borrowing
`0
`0
`0
Other Liabilities Principal Repayment
`0
`0
`0
Long-term Liabilities Principal

Repayment
`0
`0
`0
Purchase Other Current Assets
`0
`0
`0
Purchase Long-term Assets
`0
`0
`0
Dividends
`0
`0
`0
`460,080
`723,321
`767,986
Net Cash Flow
`13,470
(`36,743)
`32,592
Cash Balance
`96,470
`59,727
`92,320
Additional Cash Spent
Subtotal Cash Spent
Page 19
Projected Balance Sheet

The following table highlights the projected balance sheet for three years.
Table: Balance Sheet
Pro Forma Balance Sheet

Year 1
Year 2
Year 3
`96,470
`59,727
`92,320
`122,450
`145,872
`169,293
`46,200
`80,972
`90,014
`0
`0
`0
`265,120
`286,570
`351,627
Long-term Assets
`0
`0
`0
Accumulated Depreciation
`0
`0
`0
Total Long-term Assets
`0
`0
`0
`265,120
`286,570
`351,627
Year 1
Year 2
Year 3
Assets
Current Assets
Cash
Accounts Receivable
Inventory
Total Current Assets
Long-term Assets
Total Assets
Liabilities and Capital
Page 20
Current Liabilities
Accounts Payable
`59,552
`40,367
`44,384
Current Borrowing
`0
`0
`0
Other Current Liabilities
`0
`0
`0
`59,552
`40,367
`44,384
`100,000
`100,000
`100,000
Total Liabilities
`159,552
`140,367
`144,384
Paid-in Capital
`150,000
`150,000
`150,000
Retained Earnings
(`67,000)
(`44,432)
(`3,797)
`22,568
`40,635
`61,040
Total Capital
`105,568
`146,203
`207,243
Total Liabilities and Capital
`265,120
`286,570
`351,627
Net Worth
`105,568
`146,203
`207,243
Subtotal Current Liabilities
Earnings
Business Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based
on the Standard Industrial Classification (SIC) code 5013, Moter Vehicles Supplies and
New Parts, are shown for comparison.
Table: Ratios
Ratio Analysis
Sales Growth
Year 1
Year 2
Year 3
Industry
Profile
n.a.
19.13%
16.06%
12.20%
Page 21
Percent of Total Assets

Accounts Receivable
46.19%
50.90%
48.15%
25.10%
Inventory
17.43%
28.26%
25.60%
46.10%
0.00%
0.00%
0.00%
15.10%
100.00%
100.00%
100.00%
86.30%
0.00%
0.00%
0.00%
13.70%
100.00%
100.00%
100.00%
100.00%
Current Liabilities
22.46%
14.09%
12.62%
46.60%
37.72%
34.90%
28.44%
11.50%
Total Liabilities
60.18%
48.98%
41.06%
58.10%
Net Worth
39.82%
51.02%
58.94%
41.90%
100.00%
100.00%
100.00%
100.00%
Gross Margin
50.84%
50.00%
50.00%
21.70%
Selling, General &

Administrative Expenses
47.05%
44.28%
42.59%
13.20%
Advertising Expenses
1.01%
1.41%
1.82%
0.70%
Profit Before Interest and Taxes
7.09%
9.58%
11.80%
1.40%
Current
4.45
7.10
7.92
1.98
Quick
3.68
5.09
5.89
0.78
60.18%
48.98%
41.06%
58.10%

Total Current Assets
Long-term Assets
Total Assets
Percent of Sales
Sales
Main Ratios
Total Debt to Total Assets
Page 22
Pre-tax Return on Net Worth
30.54%
39.71%
42.08%
3.80%
Pre-tax Return on Assets
12.16%
20.26%
24.80%
9.00%
Additional Ratios
Year 1
Year 2
Year 3
Net Profit Margin
3.79%
5.72%
7.41%
n.a
Return on Equity
21.38%
27.79%
29.45%
n.a
3.65
3.65
3.65
n.a
56
92
93
n.a
Inventory Turnover
5.31
5.58
4.82
n.a
Accounts Payable Turnover
5.46
12.17
12.17
n.a
28
37
29
n.a
2.25
2.48
2.34
n.a
Debt to Net Worth
1.51
0.96
0.70
n.a
Current Liab. to Liab.
0.37
0.29
0.31
n.a
`205,568
`246,203
`307,243
n.a
4.22
6.81
9.72
n.a
Assets to Sales
0.44
0.40
0.43
n.a
Current Debt/Total Assets
22%
14%
13%
n.a
Activity Ratios
Accounts Receivable Turnover
Collection Days
Payment Days
Total Asset Turnover
Debt Ratios
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Page 23
Acid Test
1.62
1.48
2.08
n.a
Sales/Net Worth
5.65
4.86
3.98
n.a
Dividend Payout
0.00
0.00
0.00
n.a
Page 24
Appendix
Table: Sales Forecast
Sales
Forecast
Month
1
Month
2
Month
3
Month
4
Month
5
Month
6
Month
7
Month
8
Month
9
Month
10
Month
11
Month
12
Sales
Auto Parts
0%
`0
`0
`20,000
`26,000
`30,000
`36,000
`40,000
`44,000
`48,000
`50,000
`56,000
`60,000
Auto
Lubricants
0%
`0
`0
`8,000
`12,000
`12,000
`16,000
`20,000
`20,000
`24,000
`24,000
`26,000
`24,000
Other
0%
`0
`0
`0
`0
`0
`0
`0
`0
`0
`0
`0
`0
`0
`0
`28,000
`38,000
`42,000
`52,000
`60,000
`64,000
`72,000
`74,000
`82,000
`84,000
Month
1
Month
2
Month
3
Month
4
Month
5
Month
6
Month
7
Month
8
Month
9
Month
10
Month
11
Month
12
Auto Parts
`0
`0
`10,000
`13,000
`15,000
`18,000
`20,000
`22,000
`24,000
`25,000
`23,000
`30,000
Auto
Lubricants
`0
`0
`4,000
`6,000
`6,000
`8,000
`10,000
`10,000
`12,000
`12,000
`13,000
`12,000
Other
`0
`0
`0
`0
`0
`0
`0
`0
`0
`0
`0
`0
Subtotal
Direct Cost
of Sales
`0
`0
`14,000
`19,000
`21,000
`26,000
`30,000
`32,000
`36,000
`37,000
`36,000
`42,000
Total Sales
Direct Cost
of Sales
Table: Personnel
Personnel
Plan
Month
1
Month
2
Month
3
Month
4
Month
5
Month
6
Month
7
Month
8
Month
9
Month
10
Month
11
Month
12
Sagnik
Roy
0%
`3,000
`3,000
`3,000
`3,000
`3,000
`3,000
`3,000
`3,000
`3,000
`3,000
`3,000
`3,000
4 Facility
Staff
0%
`7,200
`7,200
`7,200
`7,200
`7,200
`7,200
`7,200
`7,200
`7,200
`7,200
`7,200
`7,200
2 Sales
Staff
0%
`6,000
`6,000
`6,000
`6,000
`6,000
`6,000
`6,000
`6,000
`6,000
`6,000
`6,000
`6,000
Total
People
Total
Payroll
`16,200
`16,200
`16,200
`16,200
`16,200
`16,200
`16,200
`16,200
`16,200
`16,200
`16,200
`16,200
Page 1
Appendix
Table: General Assumptions

General
Assumptions
Month
1
Month
2
Month
3
Month
4
Month
5
Month
6
Month
7
Month
8
Month
9
Month
10
Month
11
Month
12
10
11
12
Current
Interest Rate
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
Long-term
Interest Rate
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
Tax Rate
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
Plan Month
Other
Table: Profit and Loss

Pro Forma
Profit and
Loss
Month 1
Month 2
Month
3
Month
4
Month
5
Month
6
Month
7
Month
8
Month
9
Month
10
Month
11
Month
12
Sales
`0
`0
`28,000
`38,000
`42,000
`52,000
`60,000
`64,000
`72,000
`74,000
`82,000
`84,000
Direct Cost
of Sales
`0
`0
`14,000
`19,000
`21,000
`26,000
`30,000
`32,000
`36,000
`37,000
`36,000
`42,000
Other
Production
Expenses
`0
`0
`0
`0
`0
$0
`0
`0
`0
`0
`0
`0
Total Cost of
Sales
`0
`0
`14,000
`19,000
`21,000
`26,000
`30,000
`32,000
`36,000
`37,000
`36,000
`42,000
Gross
Margin
`0
`0
`14,000
`19,000
`21,000
`26,000
`30,000
`32,000
`36,000
`37,000
`46,000
`42,000
0.00%
0.00%
50.00%
50.00%
50.00%
50.00%
50.00%
50.00%
50.00%
50.00%
56.10%
50.00%
`16,200
`16,200
`16,200
`16,200
`16,200
`16,200
`16,200
`16,200
`16,200
`16,200
`16,200
`16,200
Gross
Margin %
Expenses
Payroll
Page 2
Appendix
Sales and
Marketing
and Other
Expenses
`500
`500
`500
`500
`500
`500
`500
`500
`500
`500
`500
`500
`0
`0
`0
`0
`0
`0
`0
`0
`0
`0
`0
`0
`0
`0
`0
`0
`0
`0
`0
`0
`0
`0
`0
`600
`600
`600
`600
`600
`600
`600
`600
`600
`600
`600
`600
`0
`0
`0
`0
`0
`0
`0
`0
`0
`0
`0
`2,000
`2,000
`2,000
`2,000
`2,000
`2,000
`2,000
`2,000
`2,000
`2,000
`2,000
`2,000
`2,430
`2,430
`2,430
`2,430
`2,430
`2,430
`2,430
`2,430
`2,430
`2,430
`2,430
`2,430
`0
`0
`0
`0
`0
`0
`0
`0
`0
`0
`0
`0
`21,730
`21,730
`21,730
`21,730
`21,730
`21,730
`21,730
`21,730
`21,730
`21,730
`21,730
`21,730
Profit Before
Interest and
Taxes
(`21,730)
(`21,730)
(`7,730)
(`2,730)
(`730)
`4,270
`8,270
`10,270
`14,270
`15,270
`24,270
`20,270
EBITDA
(`21,730)
(`21,730)
(`7,730)
(`2,730)
(`730)
`4,270
`8,270
`10,270
`14,270
`15,270
`24,270
`20,270
`833
`833
`833
`833
`833
`833
`833
`833
`833
`833
`833
`833
(`6,769)
(`6,769)
(`2,569)
(`1,069)
(`469)
`1,031
`2,231
`2,831
`4,031
`4,331
`7,031
`5,831
(`15,794)
(`15,794)
(`5,994)
(`2,494)
(`1,094)
`2,406
`5,206
`6,606
`9,406
`10,106
`16,406
`13,606
0.00%
0.00%
21.41%
-6.56%
-2.61%
4.63%
8.68%
10.32%
13.06%
13.66%
20.01%
16.20%
Depreciation
`0
Leased
Equipment
Utilities
Insurance
Rent
Payroll
Taxes
Other
Total
Operating
Expenses
Interest
Expense
Taxes
Incurred
Net Profit
Net
Profit/Sales
15%
`0
Page 3

Export Automobile Parts Business Plan

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Export Automobile Parts Business Plan

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[15/11/2011]

[BUSINESS PLAN ON EXPORTING

Presented by [ Sagnik Roy] M.B.A. 3rd Semester (Roll No:19)

Achieve handsome sales revenues during first year of operation.

Achieve a customer base of 100 taxi companies in the region.

Increase sales modestly during the second year of operation.

Total Start-up Expenses

Other Current Assets

Table: Start-up Funding

Start-up Assets to Fund

Total Funding Required

Liabilities and Capital

Accounts Payable (Outstanding Bills)

Other Current Liabilities (interest-free)

Total Planned Investment

Loss at Start-up (Start-up Expenses)

Total Capital and Liabilities

Market Analysis Summary

Auto part stores

Auto Part Stores

Chart: Market Analysis (Pie)

Target Market Segment Strategy

Competition and Buying Patterns

Strategy and Implementation Summary

Chart: Sales by Year

Table: Sales Forecast

Direct Cost of Sales

Facility staff (4)

Sales staff (2)

Table: Break-even Analysis

Monthly Revenue Break-even

Projected Profit and Loss

Pro Forma Profit and Loss

Direct Cost of Sales

Total Cost of Sales

Other Production Expenses

Total Operating Expenses

Profit Before Interest and Taxes

Chart: Profit Monthly

Chart: Profit Yearly

Chart: Gross Margin Monthly

Gross Margin Monthly

Chart: Gross Margin Yearly

Projected Cash Flow

Net Cash Flow

Table: Cash Flow

Cash from Receivables

Subtotal Cash from Operations

Cash from Operations

Additional Cash Received

New Current Borrowing

New Other Liabilities (interest-free)

New Long-term Liabilities

Sales of Other Current Assets

Sales of Long-term Assets

New Investment Received

Subtotal Cash Received

Expenditures from Operations

Subtotal Spent on Operations

Sales Tax, VAT, HST/GST Paid Out

Principal Repayment of Current

Other Liabilities Principal Repayment

Long-term Liabilities Principal