Contents

1.

EXECUTIVE SUMMARY.......................................................................................... 4
1.

INTRODUCTION................................................................................................. 4

2.

OBJECTIVES OF THE BUSINESS.........................................................................4

2.

1.

SHORT TERM OBJECTIVES..............................................................................4

2.

LONG TERM OBJECTIVES................................................................................4

COMPANY SUMMARY............................................................................................ 4
1.

BUSINESS NAME: PRECIOUS MOMENTS DAY CARE............................................4

2.

BUSINESS LOCATION AND ADDRESS.................................................................4

3.

FORM OF BUSINESS OWNERSHIP......................................................................5

4.

TYPE OF BUSINESS............................................................................................ 5

3.

PRODUCTS AND SERVICES................................................................................... 6

1.

PRODUCT AND SERVICE DESCRIPTION..............................................................6

2.

JUSTIFICATION OF OPPORTUNITY......................................................................7

3.

INDUSTRY ANALYSIS.......................................................................................... 7

4.

MARKET ANALYSIS SUMMARY............................................................................... 8

1.

CUSTOMER PROFILE.......................................................................................... 9

2.

MARKET SHARE................................................................................................. 9
1.

MARKET SURVEY............................................................................................ 9

2.

INTERVIEWS................................................................................................... 9

3.

5.

COMPETITION.................................................................................................. 10
1.

DIRECT COMPETITORS................................................................................. 10

2.

INDIRECT COMPETITORS.............................................................................. 10

3.

ANALYSIS FOR COMPETITORS......................................................................11

STRATEGY AND IMPLEMENTATION SUMMARY.....................................................13

1.

PERSONAL SWOT ANALYSIS............................................................................13

2.

MARKETING STRATEGY....................................................................................13
1.

PROMOTION STRATEGY................................................................................ 13

2.

OTHER PROMOTIONAL ACTIVITIES...............................................................15

3.

PRICING STRATEGY......................................................................................... 15
1.

OBJECTIVES OF PRICING..............................................................................15

2.

COMPETITORS.............................................................................................. 15

3.

PROFITS AND PROFITS MARGIN...................................................................16

4.

GOVERNMENT POLICY.................................................................................. 16

5.

PRICING METHODS...................................................................................... 16

6.

PRICE TABLE................................................................................................ 17
1

4.

SALES STRATEGY............................................................................................. 17
1.

Direct Selling Methods.................................................................................17

2.

Indirect Selling Methods.............................................................................. 17

5.

6.

DISTRIBUTION STRATEGY...............................................................................18
1.

MODE OF TRANSPORT..................................................................................18

2.

PROBLEMS ASSOCIATED WITH DISTRIBUTION.............................................18

3.

STRATEGIES TO OVERCOME THE CHALLENGES...........................................19

MANAGEMENT SUMMARY................................................................................... 19
1.

ORGANISATION STRUCTURE...........................................................................20

2.

MANAGEMENT TEAM....................................................................................... 21

7.

1.

BUSINESS MANAGER(S) AND QUALIFICATIONS............................................21

2.

PERSONEL, NUMBER, QUALIFICATIONS AND DUTIES...................................22

FINANCIAL PLAN................................................................................................. 24
1.

IMPORTANT ASSUMPTIONS.............................................................................. 24

2.

PROJECTED CASH FLOW FROM APRIL 2015 TO MARCH 2016..........................26

3. PROFORMA BALANCE SHEET OF PRECIOUS MOMENTS DAY CARE AT ENDING

2015, 2016 AND 2017........................................................................................... 27
4. PRO-FORMA STATEMENT FOR PRECIOUS MOMENTS DAY CARE AT YEAR
ENDING 2016, 2017, 2018.................................................................................... 27
5.

Break even analysis........................................................................................ 29

6.

CALCULATION OF PROFITABILITY RATIOS........................................................31

1.

EXECUTIVE SUMMARY
1.

INTRODUCTION

The number of working parents- including single-parent families with both

parents employed is climbing, creating an ever-growing need for quality child
care, thus we will build a business caring for them without focusing much on
academics. That is a home daycare.
The basic work we will be doing will be caring for these children with much
responsibility and serious commitment. we will be responsible for their safety
and well-being. we will also play a key role in their overall development and
may well be someone they'll remember in their entire lives. The open
enrollment for infant care (8 weeks 36 months), Toddler care (2 5 years
of age) and Before and After school (6 years and up).

2.

OBJECTIVES OF THE BUSINESS

1.

SHORT TERM OBJECTIVES

The business organization will be helping creation of jobs either directly or

indirectly to the people in the area. This will help to improve their standard of
living and help them plan their future. The business will ensure that all the
children around this region.

2.

LONG TERM OBJECTIVES

Maximization of profit through branches across the country putting up an

institute for craftsmen and technicians and other facilities for seminars and
conferencing by the year 2018.

2.

COMPANY SUMMARY
1.

BUSINESS NAME: PRECIOUS MOMENTS DAY CARE

The name of the business will be PRECIOUS MOMENTS DAY CARE. The name
will try to signify the type of care that will be offered to the children. It tells
people about my philosophy of child care. It is also easy to spell and to
remember. Moreover, it isn't an overused name for a childcare or similar to
any childcare center around the business locality.

2.

BUSINESS LOCATION AND ADDRESS

This business will be located at Ellenbari, Bijoy Sorony, Dhaka. It is an area

where different corporate sector people live and they are very busy. Both the
parents work at different places so the children of these families need
childcare support.
This will be a suitable location for the day care since the demographic data
around the area shows where the future demand will lie that is majority of
the childhood population is currently at pre-school age, thus the demand for
school-age child care services. More over the labor force
Participation rates of women around this area play a role in determining the
need of childcare services. Security is also adequate around the area which
will give the parents a peace of mind whenever the children are in the
daycare.

3.

FORM OF BUSINESS OWNERSHIP

It will be a partnership business between just five of us. This is so because it

being partnership it will be relatively easy to start-up that is:

There is less paperwork (in comparison to business structures like

Trusts and Companies) It will be inexpensive capital cost will be shared
There will be less government interference and regulation (at least in
comparison to a
Company)
It will offer more privacy (in comparison to the reporting requirements
of a Company) it being a family business
There will be less need for hiring lawyers, accountants, and other
consultants (at least in comparison to a Trust or Company)
There will be broader management base (compared to that of a Sole
proprietorship), which also means a wider pool of expertise, shared risk
(which can be both good and bad) and more sources of capital, there
may be tax planning advantages (such as income splitting)

4.

TYPE OF BUSINESS

The nature of the business is a start-up kind. It is intended to commence on

5th January, 2015. This is so since it will be the beginning of the year where
most children are believed to start their academic years. It will be operating
from Monday to Friday.

Precious Moments will provide corporate clients employees with nurturing,

innovative child care services for their children to play, learn and thrive
throughout the day. We will pride ourselves on being a leading trusted care
in Bangladesh.
Our center will offer our corporate partners employees real peace of mind,
allowing them to focus on their work, knowing that their loved ones are
under expert care in a safe and nurturing environment. Part of our mission
will include improving the work/life balance of Parents, making us a
cornerstone for numerous employee wellness strategies.

3.

PRODUCTS AND SERVICES

1.

PRODUCT AND SERVICE DESCRIPTION

The services offered will be as shown in the table:

Service offered
A safe nurturing kid-friendly

Service type
With enough toys, beds,
chairs

Age group
For all age groups

environment

And table for each child.

Nutritional meals and

snacks.

Breakfast, snacks, lunch.

For all age-groups

Daily report

It will involve how the

For all age-groups

child faired on each

Fun, activities, games and
Crafts.

particular day.
Toys, birthday celebration

For all age groups

bicycle riding

6 years and up

swimming

6 years and up

Singing games.

5 years and above.

Drawing and coloring

5 years and above.

Transportation

To and from their schools

5 years and above.

Homework assistance

For children who attend

5 years and above

child care before and after

school.

Potty training.

Toddler care(2years-4
years)

Diapers changing and

Infant care (8 months-

baby washing

36 months)

Quran study

Quran, stories, singing,

5 years and above

study of good and

simple living studies.

2.

JUSTIFICATION OF OPPORTUNITY

Some of the factors that inspired us to start this business in the region are:
Large increase over the last twenty years in the numbers of employed
mother with young children has more than doubled the number of
young children in non-parental care. Thus accessible, affordable and
quality childcare benefits the social and financial needs of parents and
educational and development needs of the children.

Our business locality is surrounded by rich families who have no

problem spending some of their income on childcare.

The child care is also needed since children under the age of six
receive some type of regular child care or early education from
someone other than a parent.

There is also a need of childcare to the children since 90% of children's

brain growth takes place before they enter kindergarten. Quality
preschool improves the ability of the children to do well in school.
Unavailability of childcare in that locality has created a need for one.

3.

INDUSTRY ANALYSIS
7

The business will be a service industry that comprises establishments

primarily engaged in providing daycare of infants or children. These
establishments generally care for preschool children, but may care for older
children when they are not in school and may also offer pre-kindergarten
educational programs.

The industry is an inspiration to us because of the following reasons:

Personal considerations
We have passion for helping young children and their parents. We
enjoy the independence and responsibility of being my own boss. We
have the time, knowledge, skills and motivation to make a small
business succeed.
We will have the time to learn the skills that is needed or we will be
willing to hire people to provide the skills you lack.
We are comfortable with the financial risk involved until our business
gets established.
Help for parents

We will be helping parents support their families by making more

childcare available. Parents need to know that their children are in a
safe, healthy and learning environment.

Community need

We will help local businesses by supporting workers who need child

care.
Our small business supports the local economy by making purchases,
buying services, paying taxes and paying salaries.
Our community maybe lacking certain types of childcare, such as care
for infants and toddlers, school-age children, mildly ill children, or
children with special needs.
Discounts and credit terms will be offered to potential customers to
strengthen the entry strategy to the business. During entry, as
managers, we will advertise job vacancies and invite competent
individuals to apply. Interviews for those who qualify will be done and
training them if necessary. We will acquire business license and
permits from the relevant authorities before venturing into the
business. To promote the services, we will advertise through the media
and billboards located at strategic points and also visiting various
houses to create awareness. We will charge my customers at a
relatively lower cost so that they are attracted more. This will assist
me to come up with upcoming competitors and therefore remain in
business.
8

For growth enhancement, all the profits realized will be used to assist
the business grow. The manager will increase the number of
employees in order to increase the level of production to the business
growth. The supervisor will be responsible for ensuring that the job is
done at all time to improve performance therefore leading to the
business growth. We will be carrying out market research regularly to
determine the desires of the customer. This will help in widening the
scope of business therefore assisting in its growth.

The business' future is maximization of profit through branches across the

country putting up facilities for seminars and conferencing by the year 2018.

4.

MARKET ANALYSIS SUMMARY

Marketing plan is used in any business enterprise to determine the

performance of the business. It involves bringing in the goods and services
to the market with an aim of making profits. The Services offered in the
business will be of high quality to attract customers.

1.

CUSTOMER PROFILE

This includes residents of Dhaka city for now. All these customers will have
to be served with high quality services so as they are retained by the
enterprise. The services offered will be affordable in accordance to the
income and in accordance to their children's age of this area. For example,
infants will require much care as compared to toddlers thus their fee will be
higher.

2.

MARKET SHARE

The survey carried out showed that the market is growing at a sufficient
rate to allow another new business to develop. PRECIOUS MOMENTS DAY
CARE did a lot of research in the area of proposed business location using
various techniques which include:
9

1.

MARKET SURVEY

This is a systematic tool which can be used to reduce risks and

improve the probability of business to succeed. It shows that the
market growth is favorable.

2.

INTERVIEWS

This was done to know the views of customers. Interviews were

conducted with a selected sample of people through face to face
interviews, telephones depending on the nature of the question.
The area has a high population, good infrastructure hence the number of
people who require my is high. Its about 1000 customers who are
interested in my products and services.
Table representing market share
Segment
Market
share
Individual
(total):
Infants

30%

Toddlers

66.67%

6years and
above

30%

33.33%

Market share represents the percentage of the customers to the total

population.

3.

COMPETITION

The competitors can be classified into

two groups:
10

Direct competitors

Indirect competitors

1.

DIRECT COMPETITORS

Sporsho Day Care

Houseno:8(3rdFloor),Road2(E)
,Uttara
Little Steps
House no: 3G, Road 104, Gulshan, Dhaka

2.

INDIRECT COMPETITORS

Pixieland Playgroup
House no: 4, Road 43, Gulshan 2, Dhaka
Child Cheer
House no: 38, Road 3, Block # D, Banasree, Rampura, Dhaka

11

3.

ANALYSIS FOR COMPETITORS

competitors

Internal

External

Extern

Intern

weakne

business

al

ss

opportuni

busine

ty

ss

Constant
flow

threats

al
streng
th

High
charges
No good
site

Sporsho Day Care

Large
kindergart

of

Offers
only

skilled

learning

laborers

opportuniti

es

en

Little Steps
Wide
experience
Poor

manageme
nt

Their
services are

transpor
t
Prices are
high

Pixieland
Playgroup

Get
free

Large number
of customers
The house
girls offer
cheap
services

Poor
communicatio
n network.

Availability

considere

of annual

d poor.

trips
Strategic
geographic
al position.

Their
services
don't offer
trust
12

assuarance.
Child Cheer

Large market

No

The
nunnies

great impact

can move
High charges

around

13

5.

STRATEGY AND IMPLEMENTATION SUMMARY

1.

PERSONAL SWOT ANALYSIS

2.

MARKETING STRATEGY
1.

PROMOTION STRATEGY

1.

ADVERTISING

Before the commencement of the business, there will be public awareness

of its commencement through the radio, television, posters, gazettes and
magazines.

2.

RADIO

This will be done through different channels i.e. Radio Foorty, Radio Today,
Radio Shadhin. Through this advertising every service will be known by the
customer. This will be done any particular time of the year e.g. 4-8 times.
Each station costs roughly bdt 20000 per week.
From the research that we got from the above competitors, we have decided
to emulate some of their tactics in this trading profession so that we can
fetch some of their customers through high quality and affordable services
that are not available in the already existing dealers.

3.

TELEVISION

Due to popularity of citizen, we will use it as the only channel because

this type of advert is expensive and will be done maybe twice a year. This
will cost bdt 9,5000 per advert.

4.

POSTERS

Posters will be the mostly and frequently means used because of their
cheap advertising cost. They will be displayed at different corners of the
streets bearing the name of my business, by location, address, telephone,
fax number and also email address, services together with their prices and
charges, discount offered and brief terms. They will be made as short and
brief to the point as possible. Approximately 1000 posters can be used per
year at bdt 5 per poster costing a total of bdt 5000.

5.

NEWSPAPER AD

This will be done twice per year and it will be through the daily Nation
Gazette. A single cost advertisement costs bdt 2,500.

6.

PUBLIC RALLIES

Advertising through public rallies will be performed after 3months.The

estimated cost of advertising will be bdt 8000 per year.

2.

OTHER PROMOTIONAL ACTIVITIES

Price Reductions: Prices will be reduced by 8%, less for the first twenty
customers.

Soft loans: This will be given to employees as a motivation. This will

make them work to their best, thus increasing the production and in
turn increase the sales.

Discounts: quantity discounts will be rendered to customers. This will

indirectly motivate customers to opt for services for the business.

3.

PRICING STRATEGY

Price is a value expressed in monetary. This is the amount of money

needed to acquire some combination of a product and services. It affects
firms competitive position and the share of the market.

1.

OBJECTIVES OF PRICING

To achieve target return

To stabilize prices

To improve and maintain our market

To cope up with the market

To maximize price

The things that are considered to arrive at the price of the commodities and
services

2.

COMPETITORS

The price of the service will be 1% less than the normal price i.e.
competitors prices in order to beat up the competitor.

3.

PROFITS AND PROFITS MARGIN

There will be reasonable prices or charges so as to obtain maximum

reasonable profits. This will be a subject to verification every end month.

4.

GOVERNMENT POLICY

The price setting up of the services will indirectly include the amount of
taxes paid for that services.

5.

PRICING METHODS

1.

SEASON PRICING

This setting the price of products and services according to seasons

2.

NON-BARGAINING PRICING

There will be no bargaining between the buyer and the seller

negotiating that is to reach a consensus.

3.

PENETRATION PRICING

This is the lowering of price below competitors to increase your share in the
market.

4.

COMPETITION ORIENTED PRICING

Business set prices after careful consideration of the competitive market

structure. The business can provide services at a lower or higher price in line
with the competition.

5.

PSYCHOLOGICAL PRICING

A product price is set at a full number. The price setters feel that such a
price has an apparent psychological significance for the customer
perspective.

6.

PRICE TABLE

SERVICES

PRICES

Nutritional meals and snacks

2000 bdt per

month.
Fun, activities, games and crafts

2000 bdt per

month
Transportation

1000 bdt per

month
Tutorial or homework assistance

1000 bdt per month

Annual field trip

800 bdt per trip

Medical fee

2000 bdt per month

Necessities like diapers, pottys

4.

SALES STRATEGY
1.

2500 bdt per month

Direct Selling Methods

Coming face to face with the

potential clients

Learning the customers attitude towards the services

Advertising the services at the counter

Giving advisory services to customers services on the stage

Meeting to customers objectives.

2.

Indirect Selling Methods

Public announcement of services through the

television
Public announcement of services through the

radios
Advertising the business services through
the posters

Calling for exhibitions selling services at a reasonable cheap

5.

DISTRIBUTION STRATEGY

The distribution channel of our products will include:

Business Representatives: These will be through on-line or through a team of
members of the business in line of sales. They will be required to promote
sales through negotiating with the customers, since one will not have to pay
for all the service.

1.

MODE OF TRANSPORT

ROAD TRANSPORT
This will be used to transport the children to and from their homes. It will
also be used to transport older children to and from their schools for those
needing child care before and after school. The approximate cost of
transport through this means will cost bdt 800 per month.

2.

PROBLEMS ASSOCIATED WITH DISTRIBUTION

ACCIDENTS
It will be hard to predict an accident on the way which will be a huge loss for
the business and the children's families.
POOR INFRASTRUCTURE AND COMMUNICATION
Poor road conditions such as pot holes, mud, rough and bumped roads would
delay the children to their schools and homes.

3.

STRATEGIES TO OVERCOME THE CHALLENGES

For muddy and untarmacked roads, employ the uses of four-wheel

drive vehicles. Different vehicles can be used to transport the

6.

children to their various destinations.

Well experienced drivers will be employed so as to avoid issues like
accidents.

MANAGEMENT SUMMARY

As described earlier in the business description, Precious Moments is a

partnership form of business significantly meaning that both parties will be in
charge of the business have several duties and responsibilities which are very
crucial and needs to special attention. These will be as follows:
HIRING, RECRUITING AND FIRING OF EMPLOYEES

It will be our duty and responsibility to enroll new employees to assign

recruitments and to hire new employees. For one to succeed through
our enrollment they must have the desired qualifications and have
passed the interior interview which we will be conducting with the help
of some of our staff. Recruitment of new members will be through direct
interview whereby one will be required to come face to face with the
interviewers for examination and also indirect interview whereby
applications will be invited through letters, telephones or emails. After
enrollment one will go further training through a trainer assigned for
that duty. The manager will be the chief legal advisor of the any matter

arising in the business, should be directed to me whatever the

circumstance and my decision will be final

We will be chief
responsibilities

We will be the overall in charge of all business operations in relation to

organizer

of

the

staff

members,

duties

and

contracts, sales, purchases, installation and maintenance

We will be the one to decide on salaries and allowances of employees

We will be entitled to not less than 45,000 TK per month from the profits,
putting into consideration the business progress.

1.

ORGANISATION STRUCTURE

2.

MANAGEMENT TEAM
1.

BUSINESS MANAGER(S) AND QUALIFICATIONS

Qualifications:
1. Bachelor degree holder from any reputed university. BBA
graduates are
preferred.
2. Experience of about 3 years in the related skill
3. Age 28-35 years.
4. Computer skills.
5. Good communication skills.
6. Other qualifications will be added advantage.
Duties and
responsibilities:
1. Will be the co-actor when the directors aren't around.
2. Senior Supervisor.
3. Assisting in recruiting new employees.

2.

PERSONEL
AND
Busine
ss
manag
er

PERSONEL, NUMBER, QUALIFICATIONS AND

DUTIES
NUMBER

Secretary

Bachelor degree
holder in managerial
skills. Experience of
about 3years in a
related field. Age 2835years. Good
communication
skills.
Computer literate.
1

to ladies.
Business
accounta
nt

Bus driver
and above.

QUALIFICATION

RESPONSIBILITIES
My co-actor when am not
around. Supervising senior
technician. Assisting in
recruiting new employees.

Bachelor in any
discipline.
Computer
Literate.
Age 2528years old.
Perfect
communication skills.
Priority given

Receiving phone calls and

forwarding to respective
personnel. Welcoming
clients before meeting
senior officers. Signing
contracts.
Directing clients.

Bachelor in
accounting. Aged 2528 years old.
Fresh graduates
can apply.

Keeping business
records. Recording all
transactions
performed
inflows/outflows.

Aged 22 years
Possess the required
commercial Driver's
License.
Endorsements in a
clean driving record.

Child
care
teacher

DUTIES

Bachelor degree
holder.

Transportation of children to
and from their homes. Will
carry out any transportation
needed.

Trained in
teaching with 2
years experience.

Child's nurse
Diploma of

Degree or
Higher Education in
nursing. At least 2
years experience.
Good Communication
skills.

Child
attenda
nt

9
children.

Certificate in early

Assessing, planning and

carrying out nursing care
requirements. Writing
clinical records of every
child.

Will be carrying out all

services involving child
Well competent in child care
care. Has a good
personality.

7.

FINANCIAL PLAN
1.

IMPORTANT ASSUMPTIONS

MATERIALS NEEDED IN RUNNING THE BUSINESS

Materials/
equipment

Quanti Source name and

ty
address

Tables

10

Kazi Furniture

500

Tot
al
cost
5000

Chairs

10

Kazi Furniture

300

3000

Benches

25

Kazi Furniture

400

1000
0

Shelves

Kazi Furniture

1500

3000

Computers

Max IT Solutions

GAS COOKER

Stadium Market

Unit
price

30000
2500

Total

60000
5000
8700
0

COST OF LABOUR PER MONTH

This is the amount of money that the proprietor intends to spend every
month on remuneration of the employees.
N0

Staff members

Basi
c
sala
20000

allowanc Total
es
per
month
3000
23000

Total
per
year
276000

1
1

Business
Manager.
Secretary

10000

2000

12000

144000

Business Driver

7000

7000

84000

15000*2

Child Care
teacher.
Child nurse.

36000

432000

7000

84000

Child Attendant

6000*9

63000

756000

Cook

6000

6000

72000

Total

134000

3000*2

7000
1000*9

20000

184800
0
This section outlines the various expenses to be incurred, expected income
from various sources and how it will be spent.

154000

PRE-OPERATIONAL COST
These are costs incurred before the business comes into operation. These
will include various material costs and equipment as well as legal
documents to ensure smooth running of the business.
Items
Tables

Cost
(bdt)
8000

Chairs

4,000

Benches

125000

First Aid kit

5000

Shelves

1,800

Kitchen Facilities

7000

Gas Cooker

16,000

Computers

60,000

Electricity

2,000

Insurance

8,000

Internet services
installation
Water installation

12000

Telephone installation

5,000

Business registration

3,000

Total

250,300

5,000

ESTIMATION OF WORKING CAPITAL

This is the total amount required to start an enterprise and financing for all
the expenses
Working capital= current assets- current liabilities
Items
Cash at bank

Amount
(bdt)
150000

Cash in hand

50000

Creditors

450000

Short term loan

800000

Debtors

200000

Working capital

1,425,000

2.

PROJECTED CASH FLOW FROM APRIL 2015 TO

MARCH 2016

cash in flow April may june july

Augus septem octob novem decem januar februa marc total
beginningbal
595 748 960 t 1246ber1636 er2069ber2538ber3052y 3596ry4186 h 4843 2546
ance sales
00
00
00
00
00
00
00
00
00
00
00
900
cash
1800 1850
1900
2000
2100
2150
2200
2250
2300
2350
2400
2450
2575
00
00
00
00
00
00
00
00
00
00
00
00
debtors
900 100 110 115 120
125 130
135
140 145 150
155 000
1515
0
00
00
00
00
00
00
00
00
00
00
00
00
cash at
500
500
bank
00
00
total in flow
2390 2545 2758 3075 3466
3911 4399 4923 5492 6091 6736 7448 5323
00
00
00
00
00
00
00
00
00
00
00
00
400
cash outflow
cash
900 940 950 960 970
980 990
1000 1010 102 1030 1040 1179
purchases
00
00
00
00
00
00
00
00
creditors
30
300 31
310
32
310 00
31
350 00
350 00
340 00
34 000
354
00
0
00
0
00
0
00
0
0
0
00
rent
250
25
250 25
250
25
250
25
250 250 250 00
25
300
0
00
0
00
0
00
0
00
0
0
0
00
00
wagesand
500 500 500 500 500
500 500
500
500 500 500
500 6000
salaries
00
00
00
00
00
00
00
00
00
00
00
00
00
allowances
400
40
400 40
400
40
400
40
400 400 400 40
480
0
00
0
00
0
00
0
00
0
0
0
00
00
promotions
500
50
500
50
500
50
500
50
500
500
500
50
600
0
00
0
00
0
00
0
00
0
0
0
00
00
telephone
120
12
120
12
120
12
120
12
120
120
120
12
144
and
posta
0
00
0
00
0
00
0
00
0
0
0
00
00
electricity
100
10
100 10
100
10
100
10
100 100 100 10
120
0
00
0
00
0
00
0
00
0
0
0
00
water
30
30
30
30
30
300
30
300
300
30
30
30 00
360
0
0
0
0
0
0
0
0
0
0
advertiseme
500
50
500
50
500
50
500
50
500 500
500
50
600
nt
0
00
0
00
0
00
0
00
0
0
0
00
00
loan
repayment
interest on
loan
license and
250
25
250 25
250
25
250
25
250 250 250 25
300
permits
0
00
0
00
0
00
0
00
0
0
0
00 1270
00
transport
100
100
900 110
100
100
110
110
120
120
100
110
00
00
0
00
00
00
00
00
00
00
00
00
00
insuarance
400
400
0
0
mislleneous
100
12
130 13
140
15
150
15
160 150 140 14
166
0
00 1798
0
00 1830
0
00 1861
0
00
0
0
0
00 2220
00
total cash
1765
1797
1829
1842
1871
1896
1905
1893
1913
outflow
00
00
net
595 00
748 00
960 00
1246 00
1636
2069 00
2538 00
3052 00
3596 00
4186 00
4843 00
7255 000
3272
00
00
00
00
00
00
00
00
00
00
00
00
400

3.

PROFORMA BALANCE SHEET OF PRECIOUS

MOMENTS DAY CARE AT ENDING 2015, 2016 AND
2017
1st year

2nd
year

3rd
year

Cash in bank

100000

170000

200000

Cash in hand

585860

628000

750000

Debtors

68000

75000

90000

Stock

127400
0
198768
0

130000
0
216800
0

145000
0
249000
00

510000

616000

650000

134640
0

163400
0

178400
0

135840

271680

271680

Owner equity

608470

392120

582820

Net profit

699160

759260

795300

Sub total

123415
5
209071
0

139122
0
229700
0

140530
0
263850
0

Item
Current assets

Sub total
Current
liabilities
Creditors
Sub total
Long term
liabilities
Bank loan

Total liabilities

4.

PRO-FORMA STATEMENT FOR PRECIOUS

MOMENTS DAY CARE AT YEAR ENDING 2016,
2017, 2018

Item
Income
Total income

1st year 2nd

year

3rd
year

816440
0

259800 26900
0
00

Wages and
salaries
Rent

576000

Water

10950

684000 74400
0
70000 10800
0
12000 14000

Expenses

70500

Telephone

41850

45000

48000

Electricity

40400

42000

4500

Advertising

22500

26000

30000

Stationery

16200

18200

20000

Transport

5800

62000

70000

Depreciation

9000

18000

30000

Loan payment

135840

Repair
and
maintena
Insurance

12000

217680 21768
0
14500 18900

48000

68000

83000

Legal expenses

10000

19000

21000

Total expenses

105124
0
Net profit before tax 720360
Provision for tax
(15%)
Net profit after tax

5.

21200

131638 14495
0
80
775260 81000
0
16000 14700

699,160 759260 79530

0

Break even analysis

CALCULATION OF BREAK-EVEN POINTS

Break-even point is the level of operation at which the business neither
sustains a loss of makes of profit. A profit margin is expected by the
business if production is above this level. It is the point at which the
business will only able to meet variable costs and fixed costs only.
Break-even point measures the intensity of marginal profit as a percentage
of sales also known as marginal profit ratios (mpr) it is calculated as
Break-even point (BEP) = fixed costs * sales
Sales variable cost
The greater the volume of sales from the break-even points the more the
margin of safety.

BREAK-EVEN POINT FOR THE FIRST YEAR ENDING 4TH JANUARY 2016
Item

Amount

Fixed costs
Furniture and fittings

184170

Computers

98000

Insurance

56000

Licenses

14500

Total fixed costs

382500

Variable costs
Advertising

46260

Costs of services(labor)

87200

Telephone

12305

Electricity

16570

Water

4800

General expenses (transport)

Total variable cost

81250
1032385

BEP= 382500* 4721487

4721487-1032385
=489,541.57

6.

CALCULATION OF PROFITABILITY RATIOS

GROSS PROFIT RATIOS

This expresses gross profit as a percentage of sales. It is calculated for the
first three years of operation. Gross profit is the difference between revenue
generated from services and the cost of the services provided. It is
calculated as follows;
Gross profit ratio (GPR) = gross profit * 100
Servic
es
=2478887*100
4721487
=52.5%

The calculations above depicts that the market for services offered by the
business is high and prosperous. This creates a bigger chance for the
business to capture a larger market share by improving on services
rendered further and offering the best prices for the commodities sold. It
indicates the possibility of a stable market share.
NET PROFIT RATIO
Net profit ratio is the difference between the gross profit and the expenses
incurred. Net profit ratio shows the profit generated by sales and it is
calculated as below
Net profit ratio= profit before interest and tax*100
Services
=922102*100
4721487
=19.53%
DESIRED FINANCING
This is the capital required to start and keep the business
operational for some time.
Item
Pre-operational costs 4753529.75
Working capital

5846470.25

Total desired financing BDT 10,600,000

PROPOSED CAPITALIZATION
Bank loan

7500000

Owners equity

1300000

Contributions

1800000

TOTAL INVESTMENT B D T 10,600,000