YAWEH CONSTRUCTION AND SURVEY COMPANY (U) LTD.

P.O Box 21812, Kampala Fjpyawehco yahoo.com CO-OWNERS Name Filly John Paul Singh Patel SSekijjoba Daniels Nabaterega Safina Description of the Business Yaweh constructional and surveying company (YCSC) is a start up company in the Bugolobi area. It is the mission of the YCSC (U) Ltd to provide real estate services in the newly established Golden Valley Retirement Community, located in Bugolobi. YCSC (U) Ltd is a full real estate, mortgage and title company. Financing YCSC (U) Ltd expects to raise $390,000 as its own capital and to borrow $4.2 million guaranteed by the Cairo bank as a ten year loan. This provides the bulk of the current financing requirements for company growth. A statement of confidentiality. This report is confidential and a property of the owners listed above. It is intended only for use by the persons to whom it is transmitted and any reproduction of its contents without their permission is prohibited. And the loan acquired will be paid off with in ten years of the companys operation without fail. Telephone Number 0700632191 0770023547 0755278659 0700023546

TABLE OF CONTENTS CHAPTER ONE..................................................................................................................1 1.0 EXECUTIVE SUMMARY.....................................................................................1 1.1 management Capabilities...........................................................................................1 1.2 Finances.....................................................................................................................1 1.3 Target market.............................................................................................................1 1.4 Products and Services................................................................................................2 1.5 keys to success...........................................................................................................2 1.6 Vision and mission statement....................................................................................2 CHAPTER TWO.................................................................................................................3 2.0 INDUSTRY ANALYSIS..........................................................................................3 2.1 Competitors................................................................................................................3 2.2 strength and weaknesses of the competitor................................................................4 2.3 customer profile.........................................................................................................4 CHAPTER THREE............................................................................................................4 3.0 COMPANY OVERVIEW.........................................................................................5 3.1Business Location.......................................................................................................5 3.2 Company Objectives..................................................................................................5 3.3 Company ownership..................................................................................................6 3.4 Company Background...............................................................................................6 3.5 Management Experience............................................................................................6 3.6 venture prospects.......................................................................................................7 3.7 legal status..................................................................................................................7 CHAPTER FOUR................................................................................................................7 4.0 PRODUCTION / SERVICE PLAN..........................................................................8 4.1 Products / services......................................................................................................8 4.2 Uniqueness of services...............................................................................................8 4.3 Development of services / products...........................................................................8 4.4 Draw backs.................................................................................................................8 4.5 competitive comparisons...........................................................................................9 4.6 future expansions.......................................................................................................9 CHAPTER FIVE.................................................................................................................9 5.0 MARKETING PLAN................................................................................................9 5.1 Market Analysis Summary........................................................................................9 5.2 Market Segmentation ..............................................................................................10 5.3 Target Market Segment Strategy.............................................................................11 5.5 Competition and Competitive Edge.........................................................................12 5.6 Strategy and implementation summary...................................................................14 5.7 Sales strategy...........................................................................................................14 5.8 Ongoing market evaluation......................................................................................15 CHAPTER SIX..................................................................................................................15 6.0 MANAGEMENT PLAN.........................................................................................15 6.1 Organizational structure...........................................................................................16 6.2 Board of Directors ..............................................................................16 6.3 Management Team...................................................................................................17 6.4 Labor Management Techniques...............................................................................19 1

6.6 Management compensation.....................................................................................20 6.7 Other investors.........................................................................................................21 6.8 Critical risks, problems and assumptions.................................................................21 CHAPTER SEVEN...........................................................................................................22 7.0 OPERATING PLAN...............................................................................................23 7.1 Operating Cycle.......................................................................................................23 7.2 Geographical Location.............................................................................................23 7.3 Facilities and Improvements....................................................................................23 7.4 Strategy and plans ...................................................................................................23 7.5 Quality assurance.....................................................................................................24 7.6 Regulatory and legal issues......................................................................................24 CHAPTER EIGHT............................................................................................................25 8.0 FINANCIAL PLAN.................................................................................................25 8.1 Investments and financing.......................................................................................25 8.2 Break-even Analysis................................................................................................25 8.3 Sales forecast for three years...................................................................................25 8.4 YCSCS PROFORMA BALANCE SHEET FOR THREE YEARS......................26 8.4 PROJECTED PROFIT AND LOSS........................................................................27 8.6 YCSC (U) LTD PROFORMA CASH FLOW FOR THREE YEARS....................28 8.7 BUSINESS RATIOS...............................................................................................29 APPENDIX 1.....................................................................................................................31 APPENDIX 3.....................................................................................................................34

CHAPTER ONE

1.0 EXECUTIVE SUMMARY.

Yaweh constructional and surveying company ltd is a medium sized commercial construction company with offices in bugoloobi. YCSC (U) Ltd has been fortunate to be awarded some initial sizable contracts for several projects among its four locations.
1.1 management Capabilities

The management of Yaweh constructional and surveying company (U) Ltd is to be of vast professional experience dedicated towards the satisfaction of the customers who are the major reasons for the companys existence. The management capabilities are actually a booster to our objectives as evidenced by the academic qualifications possessed.
1.2 Finances

The total amount required for the company is $4,590,000. This will include the amount for the insurance, purchase of non current assets, office set up, acquiring legal documents and others. The stated co-owners will contribute $390,000 as capital and the $4.2 million will be obtained as a loan from the bank. This will be used to purchase the non current assets, office set up and cash requirements. The loan acquired will be paid within ten years of the companys operation.
1.3 Target market

The company will mainly focus on two market sub- segments of commercial construction industry that is, the urban project segments and the local government contracts.

1.4 Products and Services

The company will provide the following types of constructions and surveys; schools, apartments, arcades, parking lots, roads and services like installation of building lights, Data information system. The main focus of the company shall be on how to out compete our competitors and fully exploit the Ugandan markets due to the invasion and innovation of new ideas to correct deviations incase of any.
1.5 keys to success.

YCSC (U) Ltd keys to success will be comprised of the following factors; a) Promoting trust worthy among other commercial real estates in the community. b) Retaining high quality on site management c) Completion of work within the given time as stated in the contract. d) Track the progress of each construction project, e) Taking accurate estimates on the prices of the materials

1.6 Vision and mission statement

Vision statement To provide high quality craftsmanship in the commercial construction industry at a competitive cost. Mission statement To achieve a greater reputation for quality and on time delivery than the current competitors in the central region. We further intend to deliver on time competition and maintaining high integrity on all promised timelines and quality assurances.

CHAPTER TWO

2.0 INDUSTRY ANALYSIS

With the extensive contracts of the Yaweh Constructional and Surveying Company (U) Ltd has in the commercial real estate business, it is estimated that the company will have a significant number of contacts within the first three days. There are very few construction companies that provide the products and services given by the YCSC (U) Ltd. The company has come up with new developments in the installation of all business operation systems like data information system and wreaking services as part of building re-construction project.
2.1 Competitors

Some of the companys competitors include; HOSSANA REAL ESTATES, JOMAYI, SEMA PROPERTIES and others. As regards to the competitive environment. YCSC (U) Ltd aims at customer or client satisfaction as they are the major reasons for existence. This is done by providing quality assurances and ensuring on time deliveries and fulfilling the general welfare of the public. Through research will be conducted to avail the management team with the necessary information about the products and services that the company provides to the public. In case of a decline in demand, new techniques will be adopted to meet the needs of the customers thus creating operational efficiency. According to the recent study carried out, research shows that the sales of JOMAYI are declining with decreasing demand for their products and services, while the sales of HOSSANA are growing at a steady pace. 3

2.2 strength and weaknesses of the competitor

The following are the strength and the weaknesses of the competitors

Competitor Hosanna real estates Jomayi Semma properties

strength affordable prices flexible management good quality

weakness delayed deliveries low qualities few products provided

2.3 customer profile

The marketing and sales department will ensure that the contacts of the clients and customers are noted so as to keep a track of the regular customers. This will provide an accurate record of the customers profile with the aim to increase profits through sales. My competitors may not be having the customer profiles and they just assume the levels of demand in the market. Thus the YCSC (U) Ltd hopes to use its customer profile to hit the competitors from the market. We will also deliver our products and services to the individuals in need.

CHAPTER THREE.
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3.0 COMPANY OVERVIEW

Yaweh constructions and surveying company (U) Ltd is the name that the project intends to establish. This company will be set-up to fulfill the desires of the shareholders and other stake holders as well as satisfying the needs of our customers and clients. During the study the company examined a number of areas such as; location and financial aspects, marketing aspects, technological, social and economic aspects of projects in the area it is entitled to serve. YCSC (U) Ltd is a construction company that will provide products and services which will include installation of all business operations like electrical, data information system, wreaking services, office building, parking lots and garages, arcades and government contracts. The planned business will exist as a private limited company owned by a trustworthy group of entrepreneurs who purchase and become shareholders. Besides the economic and social benefits, the company will save the government from the increasing unemployment yet they have the experience and qualifications. And further attract investors who will finance the project thus increasing the funds available for its operations.
3.1Business Location

The proposed projects headquarters will be located in Bugoloobi. This was issued by the suggestion of the members due to the available space to accommodate the operations of the company, good roads and future expansion. The company will also enjoy the economies of scale due to other companies in the area thus the benefits will be reduced cost of utilities and access to stable markets.
3.2 Company Objectives

i) ii) iii) iv)

providing high quality creating a strong relationship with the customers and clients building long term ties with the suppliers ensuring deliveries on time

3.3 Company ownership

Yaweh constrictions and surveying company will exist as an equal partnership of Filly John Paul, Nabaterega Safina, Singh Patel, Jack Daniels. The company will focus further still to recruit other people like investors as opportunities arise.
3.4 Company Background

The partners have known each other for over five years. Safina and filly began working in the construction business immediately out of high school as supervisors. Mr. Patel Singh did his civil engineering degree in India where he worked in several companies before coming to Uganda on a contract with the zzimwe constructions after which he got an MBA hence becoming the general manager for zzimwe constructions for over six years. Over the years, he met friends who realized that Uganda lacked a commercial construction company that could be competent and provide consistent high quality work and on time deliveries thus wishing to capitalize this opportunity.
3.5 Management Experience

The company will consist of a vast professionals dedicated towards customer satisfaction. Filly John Paul holds a degree in business studies with a working experience for over four years working in hosanna estates as a supervisor in the finance department hence finances will be effectively handled. Patel Singh 55years holds an MBA, degree in civil engineering and a diploma in project management. This is evidenced in his CV where he has worked in a number of departments thus getting the ability to deal with the vast complex organizational activities with many employees.

Nabaterega safina 35 holds a degree in human resource management, a diploma in public relations. She worked as the assistant supervisor as a human resource manager for the sugar corporation of Uganda and a public relations officer with the akaboozi fm and news papers for the past 10 years. SSekijjoba Daniels 40 holds a degree in marketing and supply chain management where he is a member of the procurement society in Uganda. He worked with khamis industries as the sales director and a procurement officer in Kyambogo University for the last nine years.
3.6 venture prospects

The gap in the market that was realized during the research and development study, gives an assurance for the success of the company. Hence seeking to meet the future needs of the target groups so as to fulfill the market gap that is not exploited.
3.7 legal status

The company will be incorporated on the 8 June 2016 as a limited liability company. The shareholders will contribute share capital of $97500 upon the registration by the registrar of companies.

CHAPTER FOUR

4.0 PRODUCTION / SERVICE PLAN 4.1 Products / services.

YCSC (U) Ltd provides commercial construction services, with a primary focus on large urban structure development. This includes the following types of constructions; office buildings, parking lots, apartments, arcades and government contracts. YCSC (U) Ltd intends to provide the installation of all the required business such as electrical, lightening, heating and data information system as well as wreaking services
4.2 Uniqueness of services

The services / products of the company will be appreciated by both the local and international market as our main aim is to provide high quality services in the commercial construction industry at a very competitive cost and ensuring on time delivery than the current competitors in the central region.
4.3 Development of services / products.

Most times the construction process takes a long period of time due to the complex productions. We seek to shorten the lead time so as to create satisfaction to our customers. This will be achieved by setting up long term ties with its suppliers so as to create sourcing efficiency that will minimize supply delays. With the research carried out, the company hopes to re-engineer its services continually. This will include the application of other unique features to grab the demand of the customers.

4.4 Draw backs

The services and constructions made by the company will have a price slightly higher than that of the existing firms due to the high quality that they will contained.
4.5 competitive comparisons

YCSC (U) Ltd has quality assurance as regards to the recently research that was undertaken. All the services offered posses at least an added unique feature different from its competitors. This helps the company to provide the customers with the value equal to the price they acquire the services. The company also intends to enter contracts with the new vision and other companies as regards to advertise and promote our services. Through this relationship, our products and services will be published to the general public so as to create awareness of our existence to the public. This will help to enhance the marketability of our products and services both within and outside the country.
4.6 future expansions

With the thorough research and development, the customers will be requested to comment on the services of the company. By filling in the answers to the self designed questions and during the interviews. The information gathered will act as a basis for further expansion so as to asses customers needs, wants and desires.

CHAPTER FIVE
5.0 MARKETING PLAN 5.1 Market Analysis Summary

The total market demand in Uganda Commercial construction industry sector is huge .The total demand is estimated as 173 billion for fiscal year 2013. For Bugolobi the total demand is shs.24.6 billion .Even with YCSC expects large scale growth due to its contacts and reputation, the market is so large that by the end of 2013 YCSC will project market share for the other areas in Kampala hence urban areas as well as in foreign countries.

YCSC (U) Ltd has a focus on meeting the development demand for urban located properties YCSC will hope to bid on government project as resources permit. The market Analysis table shows the estimated total number of potential customers in the two states in which the company will be operating. The majority of the company's revenue lies on commercial contracts This market sector provides significant growth and ample project for the future. Market Analysis year1 Potential Customers Growth Commercial Buildings Government Contracts Total 12,000 13,080 5,500 17,500 5,775 14,257 15,540 6,064 6,367 21,907 16939 6,685 23,624 year2 year3 year4 year5 CAGR 5.00% 2.79% 7.79%

18,855 20,321

5.2 Market Segmentation The company will mainly focus on two market sub segments of the; commercial construction industry segment .The first will be the urban project segment and the second will be the local, state and federal government contracts segments.

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Urban Project

YCSC (U) Ltd focuses on construction and wreckages/re-construction projects with urban locations. Large office buildings will make up a majority of these projects. YCSC desires to establish and maintain long-term relationship with clients to develop a referral network and future repeated business. Recent industrial trends seem to suggest that this segment will retain a relative high growth rate for the future. Government Contract Projects

Government contracts projects make up approximately 15% of revenues. High visibility and competitive bids are critical to capture this segment of the market .One of the reason why this segment is attractive is its relative stability. Contracts from these sources are not dependent on the current market conditions and will provide revenue even during an economic down turn. 5.3 Target Market Segment Strategy YCSC (U) Ltd will focus on its target market, the large urban areas, by maintaining and increasing its relationship based with commercial real estate clients. By offering a unique and impeccable level of workmanship along with competitive costs. YCSC will be to procure and maintain a healthy level of market share. Market Needs As for companies located in down town urban areas are continually modernizing and growing , the demand for commercial construction services has steadily increased over the past 20 years and the need for uniquely-savvy commercial construction services is significant hence companies seek to maintain a professional image. 5.4 Service Business Analysis The construction industry is a capital-intensive field that requires large investment in long-term assets such as bulldozers, cranes, cement mixers, etc. In addition, variable material costs such as I-beams, roofing tiles, paint etc., are also very high .This means that for the commercial construction segment, which will focus on large scope projects, that entry / exit into the

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industry is quite difficult. The industry is further fragmented with a vast number of very small companies. Most do not employ more than 40 individuals. YCSC will be employing a significantly large number beyond its first year in operation, and will therefore have the ability to bid the large and most profitable contracts. Due to such large number of companies and the intense competition, margins are relatively low for the construction business as a whole. For the commercial segments, the margins are some how higher due to the high cost of construction. Because each building is a unique product, the cost are very high relative to other assets and the clients need such assets at a specific time, the company's reputation in quality on-time delivery, and cost are the crucial element used in assessing a contractor. In this area the major competitors in the commercial segments are JOMAYI Construction, Semma properties and Hosanna estates. Each of these companies focuses on the same type of clientele as YCSC (u) Ltd. However, YCSC will offer more services, such as paving , road /highway construction, and environmental construction .With the exception of Hosanna each of these competitors has such a broad range of customers that a more focused company. 5.5 Competition and Competitive Edge There more than 1000 commercial contractors nationwide .YCSC will primarily compete on the basis of its levels of workmanship and relationships among the commercial real estate community. Large competitors are providers of services to a broad range of commercial, industrial, utility, and institution customers, typically through principal operating subsidiaries and joint ventures. The specialties of our competitors are; system. Design installation, integration, start-up, operation and maintenance of distribution Low-voltage systems such as fire alarm, security, communications and process control

system for electrical power.

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 system.

Voice and data communications system. Heating, ventilation, air conditioning refrigeration and clean-room process ventilation Plumbing process and high piping system.

Some competitors also provide services needed to support the operation of customers facilities. These services include; Site-based operations and maintenance. Mobile maintenance and services. Mall modification and retrofit projects. Consulting, program development and management for energy systems and the

maintenance of facilities. Facility services are being provided to a wide range of commercial industrial utility and institutional often including those at which construction services have been provided and others at which construction services have been provided by other contractors. Facilities services are frequently combined to provide integrated services packages, which include mechanical and electrical services. Mechanical and electrical construction services and facilities services are typically offered to corporations, municipalities and other governmental entities, owners/developers and tenants of buildings. Companies are also providing these services indirectly acting as subcontractors to construction managers, general contractors, systems suppliers and others subcontractors. While facilities services business is also highly fragmented, a number of large corporations, such as Johnson controls, inc. and the Flour Corporations, are engaged in this field, and there are other companies seeking to consolidate facilities services businesses.

5.5 Competitive edge The competitive edge and the Yaweh construction and surveying company (U) ltd is its book of contacts which make up a healthy referral network, and its competitive cost on projects.

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5.6 Strategy and implementation summary YCSC (U) ltd will succeed by providing high quality craftsmanship at a competitive cost, within initially promised timelines. To implement this strategy, YCSC will seek to create a highly efficient, rapidly responsive project implementation and tracking department within each office. By forming close long term ties with its suppliers, this will create sourcing efficiencies that will minimize supply delays. It is planned that each of the offices will be provided with equipments, maintenance, design, and infrastructure so as to make them each self sufficient profit centers. A bonus and profit sharing systems, with the benefits clearly defined for everyone, will be used to promote the company goals at all levels. Finally the company will seek to institute an ongoing training program to promote the most promising people in the company and to retain a standard of excellence in workmanship. 5.7 Sales strategy. As the table shows, YCSC (U) Ltd plans to deliver contract revenue of approximately $40 million in the first years, $51 million in the second year and $65 million in the third year of the plan. Sales forecast Unit sales Commercial buildings Governmental contracts Total unit sales Unit prices Commercial Buildings Governmental Contracts $2,000,000,000 $500,000.00 $2,200,000,000 $550,000,000 $2,420,000.00 $605,000.00 year1 19 6 25 year2 22 7 29 year3 25 9 34

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Sales Commercial Buildings Governmental Contracts Total Sales $37,484,763 $3,050,000 $40,534,763 $47,418,225 $51,268,225 $51,268,225 $59,984,054 $5,445,000 $65,429,054

Direct cost of sales Commercial Buildings Government Contracts

year1 $16,868,143 $1,525,000

year2 $20,368,283 $1,837,500 $22,205,783

year3 $24,594,702 $2,480,625 $27,075,320

Subtotal direct cost of sales $18,393,143 5.8 Ongoing market evaluation

The level of profitability will be ascertained by carrying out research so as to obtain feedback from customers as regards to their needs, and improvements in the services, re-engineering will be done. Measurements will be made on the level of demand to our segment markets on a continuous reason basis being to correct deviations in case of any.

CHAPTER SIX
6.0 MANAGEMENT PLAN The YCSC (U) Ltd will be managed by a management team which will be under the supervision

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of the Board of Directors who are the companys planning and authoritative staff responsible for formulating and implementing policies and principles especially those that need special consultation. The rest of the work shall be done by the managers and their assistants plus other elected official members, some of which include the company lawyers and secretary.

6.1 Organizational structure The company lawyer will be responsible for all the legal matters and written agreements like contracts. BOARD OF DIRECTORS PROJECT MANAGER COMPANY SECRETARY Human Resource Sales and Marketing COMPANY LAWYER Accounting and Finance Relations

6.2 Board of Directors This will be made up of 10 members with 4 share holders and 4 departmental head assistant managers.

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Share holders Filly John Paul Singh Patel Ssekijjoba Daniels Nabaterega Safina Departmental Assistants Mr. Ssevvume Augustine Madam Makumbi Patrick Mrs. Nabukenya Rodah Madam Namugga Josephine Company lawyer -Madam Nulugge Diphine -Mr. Ssumbwe jonny Company secretary; Madam kyembi Rose Madam Namusooli Justine

Post Accounting and Finance manager Project Director Sales and marketing manager Human Resource Manager

Accounting and Finance Project manager Sales and marketing Human Resource Manager

6.3 Management Team The project director, Mr. SINGH PATEL is an experienced person with good past records. He acquired a Masters in Business Administration, a degree in Civil engineering, and a diploma in project management. He has worked with various construction companies as a project manager

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and as a financial analyst. Thus has the ability to deal with the vast complex operations of the company and with many employees. Makumbi patrick the assistant holds a degree in Electrical engineering. She worked as an equipment operator with the Real estates for the past nine (9) years and has clean records in the previous place of work. The Accounting and Finance manager, Filly John Paul holds a degree in Business Studies, a certificate in ACCA. He has worked with Hosanna real estates as the financial manager for the last fifteen (15) years. Mr. Ssevvume Augustine, the assistant accounting and finance manager, holds a degree in Accounting and Finance. He acquired his experience in this field when he was working with the National water and sewerage cooperation for the past ten (10) years. The Sales and Marketing manager, Ssekijjoba Daniels, holds a bachelor in marketing and supply chain management, he is also a member of the procurement society of Uganda. He worked with Khamis industries (U) Ltd as the Sales Manager and as a procurement officer with kyambogo university for the past (9)years. Mrs. Nabukenya Rodah, the assistant manager for Sales and marketing, also holds a degree in marketing and Supply Chain Management. she worked as a Sales person for Haven Products for the past eight (6) years. The Human Resource Manager, Nabaterega Safina has a degree in Human Resource management; Sunderland University. she has worked with the Kaboozi fm as the public relations officer and as the assistant Human Resource Manager with the sugar corporation of Uganda Ltd for the last fifteen (10) years. He is a dedicated person and highly determined to manage the public relations, as regards to the past work experience. This will help boost the companys image. Madam Namugga Josephine, the assistant Human Resource Manager, holds a degree in Management science. She worked with the Monitor Publications for ten (4) years.

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The company lawyers, Madam Nalugge Diphine and Mr. Ssumbwe Jonny both hold a degree in Laws, Diploma in Law practice at the Law Development center. They are associates Advocates of Lagoon company Advocates. Madam Kyembi Rose, the company secretary, holds a degree in secretarial services Kyambogo University. She has been working with UNGA MILLERS (U) Ltd as the general secretary for the past five (8) years. 6.4 Labor Management Techniques The management of Yaweh construction and surveying company will be well equipped with all the labor programs to increase on the skills of the employees to enable them undertake the tasks assigned to them effectively. The company will impart thorough training on the newly recruited employees for a period of five months and provide thorough education for the employers. This will help in enhancing and building on the skills and competence of the staff. Management will give promotions, carryout job rotations and transfers, performance appraisal and those that do not abide by the set rules and regulations in order to enhance performance and boost the morale of the employees. With this, the company will be able to achieve its objectives through the utilization of Human resource. 6.5 Duties and Responsibilities of the department managers Human Resource Manager a) Recruit and train new employees. b) Conduct programs for performance appraisal. c) Attach duties and responsibilities to all positions. d) Draft a Human Resource Work Pan. e) Retain, transfer and promote staff at all levels. Sales and Marketing Manager a) Draft a sales and marketing plan. b) Conduct a market survey.

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c) Set prices to the services and products of the company. d) Ascertain and provide the revenue to the Accounting and finance manager. e) Supervise and monitor all the sales persons. Accounting and finance manager i. Transact and record all the activities with the help of accounting clerks. ii. Draft a financial plan. iii. Prepare and submit in the financial reports to the Board of Directors of the company. Public relations manager i. Provide the answers to the questions asked by the public about the companys products. ii. Create a good relationship between the company and the public. iii. Give out company brochures to the public.

6.6 Management compensation The salary of the key management team is as follows; Position Project manager Financial manager Sales manager Human Resource Manager Company lawyer Company secretary salary to be paid $296,650 $296,650 $296,650 $296,650 $246,650 $196,650

Each share holder will contribute an amount equal to $97500 for the companys planned stock ownership. Comparison In comparison with the gains that the key management team members were receiving in their

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previous jobs, the Yaweh Construction and Surveying Company (U) Ltd will be offered higher salaries to its employees plus other allowances like: food, transport, and accommodation. 6.7 Other investors As more opportunities arise, there are greater hopes of obtaining potential share holders to join the company. With the experience and ability of the management team, the Company is not in danger since they are all hard working, self motivated and ready to work tirelessly in order to obtain in a good reputation of the company. This can stimulate the investors to invest in the company. The accounting and finance manager intends to undertake the decisions of allocation, financing, Liquidity and Divided policy; and also to manage effectively the finances of the company. This will create a positive relationship with the lending institution. 6.8 Critical risks, problems and assumptions The Yaweh Construction and Surveying Company (U) Ltd is likely to encounter some critical risks and problems but the management team is ready to find solutions for each of them. These risks can be categorized into; Financial risks Shortage in cash before securing the orders. Difficulties in acquiring the needed bank credits. Running out of cash after orders pour in.

Marketing risks Unfavorable market trends. Sales projections not achieved.

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Potential price cutting by competitors.

Construction risks Construction costs in excess of the estimates. Long lead times in the procurement of the necessary construction raw materials.

6.9 Solutions to the risks and problems Increasing funds through obtaining grants and borrowing from friends and relatives.

Conducting thorough research to know the market share of the products and services

provided by the company. Maintain a high level of liquidity through limiting on the credit sales.

CHAPTER SEVEN

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7.0 OPERATING PLAN 7.1 Operating Cycle Since the construction lay outs and processes are well established then the operating cycle is expected to move on little or no difficulties. The construction of strip malls will take one and half years for commercial parking lots and garages will take nine months. While the lead time for the services provided like; installations of business operating systems e.g. lighting, electrical, heating, refrigeration and data information system will take a maximum of six months. The seasonal construction loads will be handled without leading to severe dislocation by building part-time help in the peak periods, and building long term ties with our suppliers of the construction materials. 7.2 Geographical Location Yaweh Construction and surveying Company (U) Ltd will be located in Bugolobi a suburb in kampala district. This location was selected due to the well established transport and communication network that eases the movement of construction materials from the market to the place at which the materials are required. There is accessibility to the market for the services and constructions made. Due to the existence of other firms in the industry, the company is more likely to enjoy the economies of scale. 7.3 Facilities and Improvements The company intends to obtain the necessary facilities in the first year of operation. These facilities include: purchasing non-current assets like buildings, machinery, motor vehicles etc. the firm will be expanded in the future say, in a period of three (3) years as by the predicted sales production. 7.4 Strategy and plans The construction process involves; mixing, grinding, softening, baking and building. This can be difficult in the absence of a well designed construction lay out. YCSC (U) Ltd intends to close long term ties with potential suppliers so as to avail sourcing efficiencies in order to minimize delays in the supply of the construction materials.

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The labor skills are availed by outsourcing the qualified personnel from outside the company and by sponsoring the employees for further studies to build on the skills that they possess. The following are the overheads that the company will incur; electricity cost of indirect materials, construction wages, and other expenses. Some of the materials to be used in the construction are: water, cement, concrete, stones, nails, iron sheets, bricks, paints, windows, ventilators, I- beams, roofing tiles, etc. 7.5 Quality assurance Quality assurance techniques will be installed in inventory and construction output. The construction control technique is to be carried out at each process during the construction with the view to eliminate material losses at any stage. The inventory control technique will be instituted by the procurement and stores personnel to ensure that the construction materials received are as per order made. This helps to take course on the receipt of the customers order. 7.6 Regulatory and legal issues The company enjoys favorable licenses and zoning permits. Environmental approval have also been received to start operation.

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CHAPTER EIGHT
8.0 FINANCIAL PLAN The following documents will be the basis of financial planning and decision making for the company; the balance sheet, cash flow statement, income statement, business ratios and other necessary documents. These will help to predict, compare and evaluate the earning potential of the company. 8.1 Investments and financing YCSC (U) Ltd expects to raise $390,000 as its own capital, and to borrow $4.2 million guaranteed by the Cairo bank as a ten-year loan. This provides the bulk of the current financing required for company growth. 8.2 Break-even Analysis YCSCs break-even analysis is based on the average of the first-year figures for total sales by project, and by operating expenses. These are presented as per- project revenue, per-project cost, and fixed costs. These conservative assumptions make for a more accurate estimate of real risk. Break even analysis Monthly Units break even Monthly revenue break even Assumptions: Average per unit revenue Average per unit variable cost Estimated monthly fixed costs

1 $1,966,721 $1,621,390.50 $735,725,73 $1,074,298

8.3 Sales forecast for three years

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Total unit sales Total unit prices Total sales Total direct unit cost Total direct cost of sales

YEAR 1 25 $2,500,000 $40,534,763 $1,150,000 $18,393,143

YEAR 2 29 $2,750,000 $51,268,225 $1,207,500 $22,205,783

YEAR 3 34 $3,025,000 $65,429,054 $1,267,875 $27,075,327

8.4 YCSCS PROFORMA BALANCE SHEET FOR THREE YEARS YEAR 1 Assets YEAR 2 YEAR 3

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Non Current Assets Long-term Assets Accumulated Depreciation Total long-term Assets Current Assets Cash Other current Assets Total Current Assets Total Assets Liabilities and capital Current Liabilities Accounts payable Subtotal Current Liabilities Non-current Total Liabilities Paid-in Capital Retained earnings Earnings Total capital Total liabilities and capital Net worth $1,167,159 $1,167,159 $4,233,200 $5,400,359 $390,000 ($1,193,284) $6,620,047 $5,816,763 $11,217,122 $5,816,763 $2,766,028 $2,766,028 $2,766,028 $6,599,228 $390,000 $5,426,763 $12,777,092 $18,593,855 $25,193,084 $18,593,855 $3,364,481 $3,364,481 $3,233,200 $6,597,681 $390,000 $18,203,855 $18,969,854 $37,563,710 $44,161,391 $37,563,710 $6,817,122 $100,000 $6,917,122 $11,217,122 $18,293,084 $10,000 $18,393,084 $25,193,084 $33,561,391 $10,000 $33,661,391 $44,161,391 $4,600,000 $300,000 $4,300,000 $8,200,000 $1,400,000 $6,800,000 $13,500,000 $3,000,000 $10,500,000

8.4 PROJECTED PROFIT AND LOSS As the Highlights table shows below, YCSCs sales are expected to increase by $10,000,000 each year. The following profit and loss table demonstrates YCSCs expectation of continuing steady

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growth over the next three years of operation. YEAR 1 $2,500,000 $1,150,000 $1,350,000 $296,650 $919;950 425,000 $700 $44,498 $1,286,798 $63,203 $88,203 $35,277 $6,981 $1,286,798 YEAR 2 $12,500,000 $7,050,000 $5,450,000 $321,650 919,950 450,000 $900 $69,498 $1,361,998 $666,203 $688,203 $35,277 $2,81981 $1,546,664 YEAR 3 $22,500,000 $5,900,000 $16,600,000 $346,650 $69,950 $25,000 $1100 $94,498 $537,198 $1,163,203 $1,163,203 $35,277 $281,981 $2,668,664

Sales Cost of sales Gross margin Expenses Pay roll Sales and marketing Depreciation Utilities Pay roll taxes Total expenses Profit before interest and tax PBITDA Interest expenses Taxes incurred NET PROFIT

8.6 YCSC (U) LTD PROFORMA CASH FLOW FOR THREE YEARS Year1 Subtotal cash from operations Subtotal cash received Expenditures from operations Additional cash spent $40,534,763 $40,534,763 $32,448, 557 $2,100,000 year2 $51,268,225 $51,268,225 $1,546,664 $4,000,000 year3 $65,429,054 $65,429,054 $44,260,747 $5,900,000

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Subtotal cash spent Net cash flow Cash Balance 8.7 BUSINESS RATIOS

$35,217,641 $5,317,122 $6,817,122

$39,792,263 $11,475,962 $18,293,084

$50,160,747 $15,268,307 $33,561,391

The following table presents important ratios from the construction industry, as determined by the standard industry classification (SIC) index #1542, Non residential construction. YCSC (U) LTD RATIO ANALYSIS FOR THREE YEARS Year1 profile Sales Growth Present of total assets Other current assets Total current assets Long-term Assets Total Assets Current liabilities Non current liabilities Total liabilities Net worth Percent of sales Sales Gross margin Selling, General& Administrative expenses Advertising expenses 0.15% 0.20% 0.20% 0.30% 100.00% 54.62% 38.29% 100.00% 56.69% 31.76% 100.00% 58.62% 29.63% 100.00% 16.30% 8.80% 0.89% 61.67% 38.33% 100.00% 10.41% 37.73% 48.14% 51.86% 0.40% 73.01% 26.99% 100.00% 10.98% 15.22% 26.19% 73.81% 0.23% 76.22% 23.78% 100.00% 7.62% 7.32% 14.94% 85.06% 37.80% 86.20% 86.20% 100.00% 47.40% 12.90% 60.30% 39.70% 0.00% 26.48% 27.62% 2.30% year2 year3 industry

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Profit before interest And Taxes Main ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net worth Pre-tax return on Assets Additional Ratios Net profit margin Return on Equity Activity Ratios Accounts payable Turnover Payment Days Total Assets Turnover Debt Ratios Debt to Net worth Current liab to liab Liquidity Ratios Net working Capital Interest coverage Additional Ratios Asset to sales Current Debt/ Total Assets Acid Test

22.82%

34.02%

39.20%

1.50%

5.93 5.93 48.14% 151.75% 78.69%

6.65 6.65 26.19% 91.62% 67.62%

10.00 10.00 14.94% 67.33% 57.27%

1.83 0.92 60.30% 3.20% 8.10%

16.33% 113.81% 25.75 27 3.61

24.92% 68.72% 12.17 21 2.04

28.99% 50.50% 12.17 27 1.48

n.a n.a n.a n.a n.a

0.93 0.22

0.35 0.42

0.18 0.51

n.a n.a

$5,749,963 21.83 0.28 10% 5.93

$15,627,055 43.24 0.49 11% 6.65

$30,296,910 72.59 0.67 8% 10.00

n.a n.a n.a n.a n.a

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APPENDIX 1 C.V OF THE PROJECT DIRRECTOR CURRICULUM VIATE BIO DATA Name: Mr. PATEL SINGH Date of birth; 24th July, 1957 Marital status: married

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Telephone:

0774494263

Email address: jofil4jc@yahoo.com Language spoken: English, Luganda ACADEMIC QUALIFICATIONS YEAR 1990-1991 1987-1989 1986-1987 1984-1985 1980-1983 1973-1979 INSTITUTION University of India University of India Cavendish University Mackay college school Bulo Citizen school Hill preparatory p/s AWARD Master in Business Administration Degree in Civil Engineering Diploma in project management Uganda Advanced Certificate of Education Uganda Certificate of Education Primary Leaving Examination

WORK EXPERIENCE I worked with several firms such as Trupati state highway system as the general manager for four years, JOMAYI property consultants as a financial analyst for three years and as an equipment operator with UMEME for seven years. KEY SKILLS Analytical skills Communication skills Computer skills HOBBIES Reading news papers Listening to current news Discovering new ideas REFEREES; a) Mr.Musana Desire Managing Director-Trupati state highway system. 07728889999

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b)

Mr. Nsubuga Martin. Managing Director-orange Free State 0772-345678

c)

Madam Mukoli Grace Managing Director JOMAYI 0712-567890

I declare that the above is the real truth about me. Signature.. PATEL SINGH Project director

APPENDIX 2 APPLICATION FOR A LOAN YAWEH CONSTRUCTION AND SURVEYING COMPANY (U) LTD P.O BOX 21812 Kampala (U) Tel: Fax: E-mail: Our ref: Your ref: To: The Manager Small Business Association Kampala (U) Through: Loan Manager Date:

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Small Business Association Kampala (U) Dear sir/Madam, RE: APPLICATION FOR A LOAN As the project director of Yaweh Construction and survey Company (U) Ltd, I hereby request for a loan worth $4.2 million. This will be part of the capital sought to be invested to facilitate the funds reserve available for our operations. It is a pleasure to inform you that your funds will be put to productive investments so as to gain our core objectives. I promise to abide by the written terms of the contract. I will be very grateful if my application meets your positive consideration. Yours faithful, PATEL SINGH Project Director

APPENDIX 3

21812

The republic of Uganda Certificate of incorporation I certify that YAWEH CONSTRUCTION AND SURVEY COMPANY. has this day incorporated with limited liability.

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Dated at Kampala, this 8th day of June the year 2016

.. Registrar of companies.

KYAMBOGO

UNIVERSITY

SUBMITTED IN BY; REGISTRATION NO;

FILLY JOHN PAUL 10/ U/13904/SBD/PD

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SIGNATURE; TOPIC; DATE; LECTURER; BUSINESS PLAN 10th October, 2012. MRS. BAKIA WAMALA

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