Yearwood Furniture Manufacturing Business Plan (GLS) 2020

Yearwood
Furniture
Manufacturing
Business Plan
NAME: MR. GODFREY RICARDO YEARWOOD

ADDRESS: 58 CENTRAL AMELIA’S WARD
CONTACT NUMBER: 592-680-2994
1
Confidentiality Agreement
The undersigned reader acknowledges that the information provided by Yearwood Furniture
Manufacturing in this business plan is confidential; therefore, reader agrees not to disclose it without the
express written permission of Yearwood Furniture Manufacturing.
It is acknowledged by reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information which is in the public domain through other means and that
any disclosure or use of same by reader may cause serious harm or damage to Yearwood Furniture
Manufacturing.
Upon request, this document is to be immediately returned to Yearwood Furniture Manufacturing.
___________________
Signature
___________________
Name (typed or printed)
___________________
Date
This is a business plan. It does not imply an offering of securities.
2
Table of Content
Page
Executive Summary
4
Location
5
Our Mission and Vision Statement 5
Objectives 6
Keys to Success
6
Company Structure
6
Industry Analysis
6
Global Overview of Furniture Industry
10
The Market Strategy
11
Pricing Strategy
13
Promotional Plan
13
SWOT Analysis
14
Checklist /Milestones
16
Financial Projections
17
3
Executive Summary
4
Yearwood Furniture Manufacturing is an entity that is and owned and operated by Mr. Godfrey
Ricardo Yearwood. Yearwood Furniture Manufacturing was created to specialise on
manufacturing and distributing of household, office and school furniture within Region 10.
Yearwood Furniture Manufacturing will manufacture a wide range of household furniture (living
room, dining room and bedroom furniture, upholstered, coffee tables, sofa tables, end tables,
sofas, love seats, chairs, bookshelves, ottomans, display cabinets, consoles and TV stands and
otherwise), outdoor and office furniture (Desks and home office goods, lamps, recliners, rugs
and outdoor furniture). We are set to services a wide range of clientele in and around Region 10.
Yearwood Furniture Manufacturing will establish a long history of excellent customer service
and through effective marketing and company policy adherence; it will be the only one of its
kind in the Linden.
Yearwood Furniture Manufacturing will be a start-up venture in an ideal location. Yearwood
Furniture Manufacturing is therefore applying for a parcel of land of 0.25 of an acre or 10,890
square feet of land in Central Amelia’s ward. The land is primarily sandy loam, well drained and
is in close proximity to the Linden high way. This land will be used construct a Manufacturing
facility and Show Room. The size of the building is estimated to be 70*50 feet. Yearwood
Furniture Manufacturing plans to employs 5- 10 persons after the operation is started. The
investors’ estimates that total construction cost will be 25 million. This will be financed by
personal funds and loan funding.
Yearwood Furniture Manufacturing market’s is made up of mainly Public sector departments
and the private sector to a lesser extent. We compete against generalised large furniture
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manufacturers, cheap imported furniture distributors, and the mainstream merchandise in the
major furniture channels and office supply stores.
We also make complementary pieces to fill out the office suite, including file cabinets, printer
stands, and bookcases. We also make custom designs to fit exact measurements.
Our prime location will be a distinct advantage for manufacturing. We are also developing
relationships with a high quality lumber yard (Waaldyike, Jetoo) to supply the high quality wood
we use to manufacture our furniture. As we increase our sales, we shall be able to buy at better
prices, because of higher volumes.
There are also other reputable wood suppliers who can supply us with raw materials for our
production.
We will also work with a number of specialty manufacturers for furniture fittings, drawer
accessories, glass, shelving accessories, and related purchases.
Location
The projected location for Yearwood Furniture is Central Amelia’s ward Mackenzie Linden.
Our Mission and Vision Statement
 Our vision is to become the leading brand in the furniture manufacturing industry in
Linden and to establish a one furniture manufacturing company in Guyana.
 Our mission is to establish a world – class furniture manufacturing business whose
products will not only be retailed in the Guyana, but also be exported to other countries
of the world.
6
Objectives
Secure funding for purchase of land, construction of the factory building, equipment and
working capital
 Complete commission the manufacturing plant
 Register onto the data base of all government and public sector entities
 Pay off the working capital
 Repay all the loan commitments
Keys to Success
Our keys to success will be as follows
 Uncompromising commitment to the quality of the end product:
 Use of quality wood in all our products,
 Quality workmanship,
 Quality design,
 Quality of end result.
Company Structure
Yearwood Furniture Manufacturing do not intend to start a furniture manufacturing business like
the usual carpenter shops around the street corner; our intention of starting a furniture
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manufacturing company is to build a standard and one stop furniture manufacturing company in
Region 10.
Although our furniture manufacturing company might not be as big as Ashley Furniture
Industries, and Courts, but we will ensure that we put the right structure in place that will support
the kind of growth that we have in mind while setting up the business.
We will ensure that we hire people that are qualified, honest, customer centric and are ready to
work to help us build a prosperous business that will benefit all the stake holders (the owners,
workforce, and customers).
As a matter of fact, profit-sharing arrangement will be made available to all our senior
management staff and it will be based on their performance for a period of three (3) years or
more. In view of that, we have decided to hire qualified and competent hands to occupy the
following positions;
1. Workshop Manager
2. Carpenters and Furniture Markers
3. Accountants / Cashiers
4. Cleaners
Workshop Manager:
 Responsible for managing the daily activities in the workshop
 Ensures that proper records of furniture are kept and warehouse does not run out of
finished furniture
 Ensures that the workshop is in tip top shape and easy to locate
8
 Interfaces with third – party suppliers (vendors) of raw materials (woods, forms, clothes,
steels, nails and accessories et al)
 Controls furniture distribution and supply inventory
 Supervises the workforce in the furniture manufacturing workshop.
Carpenters and Furniture Making Experts
 Responsible for manufacturing of household furniture (living room, dining room and
bedroom furniture, upholstered, coffee tables, sofa tables, end tables, sofas, love seats,
chairs, bookshelves, ottomans, display cabinets, consoles and TV stands and otherwise),
 Responsible for manufacturing stationary sofas/sofa-sleepers
 Manufactures household and office metal furniture
 Manufactures custom architectural woodwork and other fixtures
 Manufactures showcases, partitions, shelving and lockers.
Accountant / Cashier:
 Responsible for preparing financial reports, budgets, and financial statements for the
organization
 Provides managements with financial analyses, development budgets, and accounting
reports; analyzes financial feasibility for the most complex proposed projects; conducts
market research to forecast trends and business conditions.
 Responsible for financial forecasting and risks analysis.
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 Performs cash management, general ledger accounting, and financial reporting
 Responsible for developing and managing financial systems and policies
 Responsible for administering payrolls
 Ensures compliance with taxation legislation
 Handles all financial transactions for the organization
 Serves as internal auditor for the organization
Cleaners:
 Responsible for cleaning finished furniture and the workshop facility at all times
 Ensures that toiletries and supplies don’t run out of stock
 Cleans both the interior and exterior of the workshop facility
 Handles any other duty as assigned by the workshop manager.
Industry Analysis
In order to grow timber, inputs such as seeds, chemicals, equipment and water are needed. When the
timber has reached a mature age (from 12 to 25 years depending on the type of timber) it sent to sawmills,
where machinery and other inputs are used for production. The sawn timber is then delivered to the
furniture manufacturers. The manufacturers in turn obtain inputs from other industries such as plastic,
metal, textiles machinery and paint. In addition to this the furniture manufacturers also source inputs such
as machinery as well as inputs from the service sector in the form of design and branding expertise. The
finished product leaves the manufacturers, generally through a buyer, into either the domestic or foreign
wholesale or retail sector, before it reaches the consumer. The changing nature of the industry, often
represented by large-scale retailers has led to an increasingly common practice of retailers buying straight
10
from manufacturers in a cost saving-initiative. The last step of the value chain is then the consumer who
will, in time, either recycle or dispose of the furniture.
Global Overview of Furniture Industry
Worldwide, high-volume furniture manufacturing strategy has been pursued by most developed
and developing countries. The breakthrough in ready-to-assemble designed furniture has
encouraged innovation and new designs for exporting manufacturers. Between 2000 and 2008
worldwide trade in furniture grew by 36% and it was by 2008 the largest low-tech sector.
Developed countries, led by Italy, Germany and Canada have traditionally been the main
producers, and exporters of furniture, only in the last fifteen years have they faced fierce
competition from developing countries especially China (and to a lesser degree Malaysia,
Vietnam and Indonesia).
In 2010 the value of global furniture exports in the sector amounted to over US$193 billion. The
trend seems set to continue at current growth rate, China is the leading exporter of almost 30% of
global furniture exports, worth US$58 billion. The Chinese furniture industry has gone through a
period of tremendous growth. In 1990 it did not feature in the top ten exporters, while in 2000
was the world’s 9th largest exporter and 1st from 2006 to date.
The European Union (EU) is the leading importer of furniture, importing more than 50% of total
global furniture exports. The majority of the imports are however intra-EU, but statistics are
suggesting that imports from developing countries are increasing and likely to continue to do so.
In 2001, imports from developing countries constituted 16% of total EU imports, which grew to
28% in 2005 and .....% in 2010. China is by far the biggest exporter of furniture to the EU
followed by Indonesia, Malaysia and more recently Thailand. At number 43, South Africa is
11
down from being ranked 34 in 2005. Evidently South Africa has not kept up with global growth
trends and is consequently losing market share.
An important feature of EU furniture consumption and production is evidence of polarisation
between low quality/price and high quality/price, particularly in the old EU (the EU151).
Traditional solid wood, highly specialised, furniture products have retained important niche
market segments particularly for high-end, expensive, design-led products. Ready-to-assemble
products that can be manufactured and shipped in large quantities occupy the other end of the
spectrum. These mass produced products have dominated the global markets and have become a
major source of exports for developing countries, where one sees that once again, China is
leading other Asian countries.
The US demand for furniture is increasing; in particular, imports from China have been on the
increase. In 2006, 47% of all US furniture imports were from China and in 2010 this figure rose
to....%. The impact of this has been devastating for the US furniture industry, where a large
number of especially small manufacturers were forced to close down.
Sub-Saharan Africa’s share of global exports of furniture is less than 1%, South Africa being
accountable for as much as 97 % of this. Forestland cover in the region is about 183 million
hectares, constituting 4.6% of global forest cover (over 3 billion hectares). The abundant forest
in the region is an opportunity for South Africa to source both raw-materials and develop
forestry industries in the region in cooperation with regional organisations.
The Marketing Strategy
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Our segment definition is of itself strategic. We are intending to satisfy all users of office and
household furniture.
In our particular market, we also seek the buyer who appreciates two attributes: the quality of furniture
workmanship and the excellence of design, with an understanding of technology and ergonomics built
in.
We focus on a special kind of customer, the person who wants high quality office furniture
customised to work beautifully with modern technology including personal computers, scanners,
internet connections, and other high-tech items. Our customer might be in government
departments, public bodies, larger companies, small or medium business, or in a home office
with or without a home-office business. What is important to the customer is fine workmanship,
ease of use, ergonomics, and practicality.
More so, Yearwood Furniture will also focus on manufacturing a wide range of household
furniture (living room, dining room and bedroom furniture, upholstered, coffee tables, sofa
tables, end tables, sofas, love seats, chairs, bookshelves, ottomans, display cabinets, consoles and
TV stands and otherwise), outdoor and office furniture (Desks and home office goods, lamps,
recliners, rugs and outdoor furniture). We are set to services a wide range of clientele in and
around Region 10.
Our marketing strategy assumes that we need to go into specialty channels to address our target
customer's needs. The tie-in with catalogue marketing is perfect, because these catalogues cater
to our kind of customers. We position as the high quality and value for money. The marketing
has to convey the sense of quality in every picture, every promotion, and every publication.
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The product strategy is also based on quality and price, in this case the intersection of technical
understanding with high quality woodworking and professional materials, and workmanship.
Our most important competitive edge will be our assembly strategy, which is based on inter
locking wood pieces of such high quality that assembly is not only a pleasure for our customers,
it is actually a feature that enhances the sense of quality.
Pricing Strategy
We will maintain our pricing position as the middle of the market provider. We provide good products.
We intend to maintain our separation from the price competition at the higher end of the business. Our
plan calls for pricing of cost plus 25 % margin.
Promotional Plan
Advertising
Our advertising will be targeted at a specific market through some media channel such as radio,
newspapers, billboards, on-line or internet advertising. While advertising will be expensive, it will be an
effective and helpful means in creating a positive public image. We will be able to reach a wider audience
and provide a great opportunity for leads and eventually sales and ultimately profits.
Sales promotion
Sales promotion will be used in store and on trade shows on shorter term basis to encourage the sale of
product offerings by stimulating consumer purchases.
Direct Mailing
Yearwood Furniture Manufacturing will use a widespread distribution of promotional brochures and
other marketing literature via mail systems. The distribution will be done via electronic mail.
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SWOT Analysis
Yearwood Furniture Manufacturing is in business to become one of the leading office and
household furniture manufacturing companies in the whole of Guyana and we are fully aware
that it will take the right business concept, management and organization – structure to achieve
our goal.
We know that if a proper SWOT analysis is conducted for our business, we will be able to
position our business to maximize our strength, leverage on the opportunities that will be
available to us, mitigate our risks and be welled equipped to confront our threats.
 Strength:
Our core strength lies in the high quality of our finished furniture, the power of our team and the
state of the art and well – equipped furniture making factory that we own. We have a team of
highly trained and experienced carpenters and support staff members that can go all the way to
produce top notch office and household furniture.
We are well positioned in the along the linden highway and we know we will attract loads of
clients from the first day we open our furniture manufacturing company for business.
 Weakness:
A major weakness that may count against us is the fact that we are a new furniture
manufacturing company and we don’t have the financial capacity to compete with multi – billion
dollars furniture manufacturing companies such as Courts Inc. when it comes to manufacturing
15
furniture at a rock bottom prices. So also, we may not have enough cash reserve to promote our
furniture manufacturing company the way we would want to do.
 Opportunities:
The fact that we are going to operate our furniture manufacturing company in one of Linden
Region 10 which was a high quantity of raw materials this provides us with unlimited
opportunities to manufacture significant quantities furniture on a consistent basis. With this
excess supply of furniture our entity can begin to look for exports markets.
We have been able to conduct thorough feasibility studies and market survey and we know what
our potential clients will be looking for when they visit our furniture manufacturing workshop;
we are well positioned to take on the opportunities that will come our way.
 Threat:
Just like any other business, one of the major threat is that we are likely going to be faced with is
economic downturn. It is a fact that economic downturn affects purchasing / spending power.
Another threat that may likely confront us is the arrival of a new furniture manufacturing
company in same location where ours is located. Another threat is unfavorable government
policies may also pose a threat for businesses such as ours.
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Check List / Milestone
1. Business Name Availability Check
2. Business Registration
3. Opening of Corporate Bank Accounts
4. Securing Point of Sales (POS) Machines
5. Opening Mobile Money Accounts
6. Opening Online Payment Platforms:
7. Application and Obtaining Tax Payer’s ID
8. Application for business license and permit:
9. Purchase of Insurance for the Business
10. Leasing of facility and remodeling the facility (warehouse and showroom):
11. Conducting Feasibility Studies
12. Generating capital from family members:
13. Applications for Loan from the bank
14. Writing of Business Plan
15. Drafting of Employee’s Handbook
16. Drafting of Contract Documents and other relevant Legal Documents
17. Design of The Company’s Logo
18. Graphic Designs and Printing of Packaging Marketing / Promotional Materials
19. Recruitment of employees
20. Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office
appliances and CCTV
21. Creating Official Website for the Company
22. Creating Awareness for the business both online and around the community
23. Health and Safety and Fire Safety Arrangement (License)
24. Opening party / launching party planning
25. Compilation of our list of products that will be available in our store
26. Establishing business relationship with vendors – manufacturers and suppliers of home and
office furniture
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Yearwood Furniture Manufacturing
60 Months Financial Projections
SUMMARY
1 Main Figures
A Sales Projections - 60 Months Forecast
B Advertising Expenses Budget - 60 Months Forecast
C Cash Flow - 60 Months Forecast
D Income Statement -5 Year Forecast
E Balance Sheet - 5 Year Forecast
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Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 TOTAL
Beginning Cash Balance $0 $4,946,737 $4,548,607 $4,216,477 $4,010,847 $3,667,717 $3,420,837 $3,239,957 $3,048,077 $2,790,197 $2,694,567 $2,763,937
Loan proceeds $25,000,000

Cash & cash equivalent sales $1,015,000 $1,170,000 $1,290,000 $1,520,000 $1,270,000 $1,445,000 $1,565,000 $1,545,000 $1,425,000 $1,720,000 $2,020,000 $2,375,000 $18,360,000
Total Cash Inflows $26,015,000 $1,170,000 $1,290,000 $1,520,000 $1,270,000 $1,445,000 $1,565,000 $1,545,000 $1,425,000 $1,720,000 $2,020,000 $2,375,000 $18,360,000
Available Cash Balance $26,015,000 $6,116,737 $5,838,607 $5,736,477 $5,280,847 $5,112,717 $4,985,837 $4,784,957 $4,473,077 $4,510,197 $4,714,567 $5,138,937
Operations
Equipment $8,937,033 $8,937,033
Construction of facility $11,134,850 $11,134,850
Accountant $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $1,320,000
Cleaner $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $660,000
Electricity $39,290 $39,290 $39,290 $39,290 $39,290 $39,290 $39,290 $39,290 $39,290 $39,290 $39,290 $39,290 $471,480
Water $1,940 $1,940 $1,940 $1,940 $1,940 $1,940 $1,940 $1,940 $1,940 $1,940 $1,940 $1,940 $23,280
Materials for Items $456,750 $526,500 $580,500 $684,000 $571,500 $650,250 $704,250 $695,250 $641,250 $774,000 $909,000 $1,068,750 $8,262,000
Transportation $23,400 $23,400 $23,400 $23,400 $23,400 $23,400 $23,400 $23,400 $23,400 $23,400 $23,400 $23,400 $280,800
Carpenter $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $960,000
Workshop Manager $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $1,440,000
Labours $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $720,000
Stationery $14,300 $14,300 $14,300 $14,300 $14,300 $14,300 $14,300 $14,300 $14,300 $14,300 $14,300 $14,300 $171,600
Total Operations $21,032,563 $1,030,430 $1,084,430 $1,187,930 $1,075,430 $1,154,180 $1,208,180 $1,199,180 $1,145,180 $1,277,930 $1,412,930 $1,572,680 $34,381,043
Finance & Administration
Business Registration $5,000 $5,000
Loan Repayemnt $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $5,577,000
Total Finance & Administration $5,000 $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $507,000
Sales & Marketing
Advertising $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $368,400
Total Sales & Marketing $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $368,400
Total Cash Outflows $21,068,263 $1,568,130 $1,622,130 $1,725,630 $1,613,130 $1,691,880 $1,745,880 $1,736,880 $1,682,880 $1,815,630 $1,950,630 $2,110,380 $40,331,443
Ending Cash Balance $4,946,737 $4,548,607 $4,216,477 $4,010,847 $3,667,717 $3,420,837 $3,239,957 $3,048,077 $2,790,197 $2,694,567 $2,763,937 $3,028,557
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Income Statement Projection
For the Year Ending on: 2020
2020
Revenue Yearwood Furniture Manufacturing
Gross sales $18,360,000
Balance Sheet Projection
Net Sales $18,360,000
Fiscal Year End Date 31-Dec-2020
Expenses
Operations 2020
Electricity ASSETS $471,480
Labour $5,100,000
Water Assets
Current $23,280
Materials for Items
Cash expenses
Prepaid $8,262,000 $564,0900
Transportation
Total Current Assets $280,800 $564,090
Stationery $171,600
TotalAssets
Fixed Operational Expense $14,309,160
Fixed Assets $26,579,876
Finance
Less: &and
Administration
Accumulated
Furniture depreciation
fixtures $912,0000 $25,667,876
BusinessASSETS
TOTAL Registration $5,000 $26,231,966
Depreciation $36,480
Total Finance & Administration $41,480
LIABILITIES AND EQUITY
Sales & Marketing
Advertising
Current Liabilities $368,400
Total Sales
Accounts & Marketing
payable $368,400
$940,500
Total
Total Current Liabilities
Expenses $14,719,040
$940,500
Long-Term
Net Profit Liabilities $3,640,960
Long-term loan payable $7,098,000
Total Long-Term Liabilities $7,098,000
Total Liabilities $8,038,500
Stockholders' Equity
Investment capital $14,552,506
Current net profit (loss) $3,640,960
Total Capital $18,193,466
20
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY $26,231,966
21
BED
Number of units 7 8 8 9 7 9 9 8 8 10 10 12 105
Selling Per Unit $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000
Total $455,000 $520,000 $520,000 $585,000 $455,000 $585,000 $585,000 $520,000 $520,000 $650,000 $650,000 $780,000 $6,825,000
CHESTER DRAW
Number of Units 14 14 14 15 15 16 16 17 17 16 22 27 203
Selling price $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000
Total $630,000 $630,000 $630,000 $675,000 $675,000 $720,000 $720,000 $765,000 $765,000 $720,000 $990,000 $1,215,000 $9,135,000
DINNING SET
Number of Units 6 4 5 6 5 5 6 6 5 6 6 7 67
Selling price $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000
Total $720,000 $480,000 $600,000 $720,000 $600,000 $600,000 $720,000 $720,000 $600,000 $720,000 $720,000 $840,000 $8,040,000
$1,805,000 $1,630,000 $1,750,000 $1,980,000 $1,730,000 $1,905,000 $2,025,000 $2,005,000 $1,885,000 $2,090,000 $2,360,000 $2,835,000 $24,000,000
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Beginning Cash Balance $0 $216,870 $316,240 $499,610 $843,980 $1,013,350 $1,305,220 $1,174,840 $1,035,460 $842,080 $740,950 $761,320
Operations
Accountant $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $1,320,000
Cleaner $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $660,000
Electricity $39,290 $39,290 $39,290 $39,290 $39,290 $39,290 $39,290 $39,290 $39,290 $39,290 $39,290 $39,290 $471,480
Water $1,940 $1,940 $1,940 $1,940 $1,940 $1,940 $1,940 $1,940 $1,940 $1,940 $1,940 $1,940 $23,280
Materials for Items $541,500 $489,000 $525,000 $594,000 $519,000 $571,500 $1,113,750 $1,102,750 $1,036,750 $1,149,500 $1,298,000 $1,559,250 $10,500,000
Transportation $23,400 $23,400 $23,400 $23,400 $23,400 $23,400 $23,400 $23,400 $23,400 $23,400 $23,400 $23,400 $280,800
Carpenter $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $960,000
Labours $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $720,000
Stationery $14,300 $14,300 $14,300 $14,300 $14,300 $14,300 $14,300 $14,300 $14,300 $14,300 $14,300 $14,300 $171,600
Total Operations $1,045,430 $992,930 $1,028,930 $1,097,930 $1,022,930 $1,075,430 $1,617,680 $1,606,680 $1,540,680 $1,653,430 $1,801,930 $2,063,180 $16,547,160
Loan Repayemnt $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $6,084,000
Sales & Marketing
Advertising $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $368,400
Ending Cash Balance $216,870 $316,240 $499,610 $843,980 $1,013,350 $1,305,220 $1,174,840 $1,035,460 $842,080 $740,950 $761,320 $995,440
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2021
Revenue
Net Sales $24,000,000
Expenses
Operations
Electricity $471,480
Labour $5,100,000
Water $23,280
Materials for Items $10,500,000
Transportation $280,800
Stationery $171,600
Total Operational Expense $16,547,160

Business Registration $5,000
Sales & Marketing

Advertising $368,400
Total Sales & Marketing $368,400
Total Expenses $16,957,040
Net Profit $7,042,960
24
2021
ASSETS
Current Assets
Cash
Prepaid expenses $612,480
0
Total Current Assets $612,480
Fixed Assets
Less: Accumulated
and fixtures $948,4800 $25,631,396
TOTAL ASSETS $26,243,876
Current Liabilities
Accounts payable $893,204
Total Current Liabilities $893,204
Long-Term Liabilities
25
BED
Number of units 15 14 14 14 13 15 15 14 14 16 16 18 178
Selling Per Unit $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000
Total $975,000 $910,000 $910,000 $910,000 $845,000 $975,000 $975,000 $910,000 $910,000 $1,040,000 $1,040,000 $1,170,000 $11,570,000
CHESTER DRAW
Number of Units 20 20 20 21 21 22 22 23 23 19 24 33 268
Selling price $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000
Total $900,000 $900,000 $900,000 $945,000 $945,000 $990,000 $990,000 $1,035,000 $1,035,000 $855,000 $1,080,000 $1,485,000 $12,060,000
DINNING SET
Number of Units 13 11 11 12 11 11 12 12 11 12 13 13 142
Selling price $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000
Total $1,560,000 $1,320,000 $1,320,000 $1,440,000 $1,320,000 $1,320,000 $1,440,000 $1,440,000 $1,320,000 $1,440,000 $1,560,000 $1,560,000 $17,040,000
$3,435,000 $3,130,000 $3,130,000 $3,295,000 $3,110,000 $3,285,000 $3,405,000 $3,385,000 $3,265,000 $3,335,000 $3,680,000 $4,215,000 $40,670,000
26
Beginning Cash Balance $0 $838,720 $1,514,690 $2,190,660 $2,957,380 $3,000,350 $3,104,570 $3,250,790 $3,390,010 $3,487,230 $3,608,950 $3,851,420
Loan proceeds
Operations
Accountant $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $1,320,000
Cleaner $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $660,000
Electricity $43,190 $43,190 $43,190 $43,190 $43,190 $43,190 $43,190 $43,190 $43,190 $43,190 $43,190 $43,190 $518,280
Water $1,940 $1,940 $1,940 $1,940 $1,940 $1,940 $1,940 $1,940 $1,940 $1,940 $1,940 $1,940 $23,280
Materials for Items $1,545,750 $1,408,500 $1,408,500 $1,482,750 $2,021,500 $2,135,250 $2,213,250 $2,200,250 $2,122,250 $2,167,750 $2,392,000 $2,739,750 $23,837,500
Transportation $23,400 $23,400 $23,400 $23,400 $23,400 $23,400 $23,400 $23,400 $23,400 $23,400 $23,400 $23,400 $280,800
Carpenter $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $960,000
Labours $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $720,000
Stationery $14,300 $14,300 $14,300 $14,300 $14,300 $14,300 $14,300 $14,300 $14,300 $14,300 $14,300 $14,300 $171,600
Loan Repayemnt $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $6,084,000
Sales & Marketing
Advertising $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $368,400
Ending Cash Balance $838,720 $1,514,690 $2,190,660 $2,957,380 $3,000,350 $3,104,570 $3,250,790 $3,390,010 $3,487,230 $3,608,950 $3,851,420 $4,281,140
27
2022
Revenue
Net Sales $40,670,000
Expenses
Operations
Labour $5,100,000
Water $23,280
Stationery $171,600

Sales & Marketing

28
2022
ASSETS
Current Assets
Cash expenses
Prepaid $819,3000
Fixed Assets
Less: Accumulated
and fixtures $984,9600 $25,594,916
Current Liabilities
29
BED
Number of units 15 14 14 14 13 15 15 14 14 16 16 18 178
Selling Per Unit $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000
Total $975,000 $910,000 $910,000 $910,000 $845,000 $975,000 $975,000 $910,000 $910,000 $1,040,000 $1,040,000 $1,170,000 $11,570,000
CHESTER DRAW
Number of Units 20 20 20 21 21 22 22 23 23 19 24 33 268
Selling price $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000
Total $900,000 $900,000 $900,000 $945,000 $945,000 $990,000 $990,000 $1,035,000 $1,035,000 $855,000 $1,080,000 $1,485,000 $12,060,000
DINNING SET
Number of Units 13 11 11 12 11 11 12 12 11 12 13 13 142
Selling price $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000
Total $1,560,000 $1,320,000 $1,320,000 $1,440,000 $1,320,000 $1,320,000 $1,440,000 $1,440,000 $1,320,000 $1,440,000 $1,560,000 $1,560,000 $17,040,000
$3,435,000 $3,130,000 $3,130,000 $3,295,000 $3,110,000 $3,285,000 $3,405,000 $3,385,000 $3,265,000 $3,335,000 $3,680,000 $4,215,000 $40,670,000
30
Beginning Cash Balance $0 $914,960 $1,182,420 $1,449,880 $1,791,590 $2,050,050 $2,387,260 $2,778,470 $3,160,680 $3,488,890 $3,848,600 $4,363,560
Loan proceeds
Operations
Accountant $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $1,440,000
Cleaner $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $780,000
Electricity $55,390 $55,390 $55,390 $55,390 $55,390 $55,390 $55,390 $55,390 $55,390 $55,390 $55,390 $55,390 $664,680
Water $3,290 $3,290 $3,290 $3,290 $3,290 $3,290 $3,290 $3,290 $3,290 $3,290 $3,290 $3,290 $39,480
Transportation $55,700 $55,700 $55,700 $55,700 $55,700 $55,700 $55,700 $55,700 $55,700 $55,700 $55,700 $55,700 $668,400
Carpenter $85,000 $85,000 $85,000 $85,000 $85,000 $85,000 $85,000 $85,000 $85,000 $85,000 $85,000 $85,000 $1,020,000
Labours $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $840,000
Stationery $18,960 $18,960 $18,960 $18,960 $18,960 $18,960 $18,960 $18,960 $18,960 $18,960 $18,960 $18,960 $227,520
Loan Repayemnt $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $507,000 $6,084,000
Sales & Marketing
Advertising $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $368,400
Ending Cash Balance $914,960 $1,182,420 $1,449,880 $1,791,590 $2,050,050 $2,387,260 $2,778,470 $3,160,680 $3,488,890 $3,848,600 $4,363,560 $5,119,270
31
2023
Revenue
Net Sales $40,670,000
Expenses
Operations
Labour $5,640,000
Water $39,480
Stationery $227,520

Sales & Marketing

32
2023
ASSETS
Current Assets
Cash expenses
Prepaid $908,3830
Fixed Assets
Less: Accumulated
and fixtures $1,021,4400 $25,558,436
Current Liabilities
33
BED
Number of units 16 15 15 15 14 16 17 15 15 17 17 19 191
Selling Per Unit $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000
Total $1,040,000 $975,000 $975,000 $975,000 $910,000 $1,040,000 $1,105,000 $975,000 $975,000 $1,105,000 $1,105,000 $1,235,000 $12,415,000
CHESTER DRAW
Number of Units 21 21 21 22 22 23 24 24 24 20 25 34 281
Selling price $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000
Total $945,000 $945,000 $945,000 $990,000 $990,000 $1,035,000 $1,080,000 $1,080,000 $1,080,000 $900,000 $1,125,000 $1,530,000 $12,645,000
DINNING SET
Number of Units 14 12 12 13 12 13 13 13 12 13 14 14 155
Selling price $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000
Total $1,680,000 $1,440,000 $1,440,000 $1,560,000 $1,440,000 $1,560,000 $1,560,000 $1,560,000 $1,440,000 $1,560,000 $1,680,000 $1,680,000 $18,600,000
$3,665,000 $3,360,000 $3,360,000 $3,525,000 $3,340,000 $3,635,000 $3,745,000 $3,615,000 $3,495,000 $3,565,000 $3,910,000 $4,445,000 $43,660,000
34
Beginning Cash Balance $0 $1,047,690 $1,211,780 $1,375,870 $2,111,310 $2,774,600 $3,552,940 $4,374,180 $5,144,720 $5,868,460 $6,619,500 $7,505,090
Loan proceeds
Operations
Accountant $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $1,440,000
Cleaner $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $780,000
Electricity $55,390 $55,390 $55,390 $55,390 $55,390 $55,390 $55,390 $55,390 $55,390 $55,390 $55,390 $55,390 $664,680
Water $3,290 $3,290 $3,290 $3,290 $3,290 $3,290 $3,290 $3,290 $3,290 $3,290 $3,290 $3,290 $39,480
Transportation $60,970 $60,970 $60,970 $60,970 $60,970 $60,970 $60,970 $60,970 $60,970 $60,970 $60,970 $60,970 $731,640
Carpenter $85,000 $85,000 $85,000 $85,000 $85,000 $85,000 $85,000 $85,000 $85,000 $85,000 $85,000 $85,000 $1,020,000
Labours $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $840,000
Stationery $18,960 $18,960 $18,960 $18,960 $18,960 $18,960 $18,960 $18,960 $18,960 $18,960 $18,960 $18,960 $227,520
Loan Repayemnt $507,000 $507,000 $507,000 $1,521,000
Total Finance & Administration $512,000 $507,000 $507,000 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales & Marketing
Advertising $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $30,700 $368,400
Ending Cash Balance $1,047,690 $1,211,780 $1,375,870 $2,111,310 $2,774,600 $3,552,940 $4,374,180 $5,144,720 $5,868,460 $6,619,500 $7,505,090 $8,599,330
35
2024
Revenue
Net Sales $43,660,000
Expenses
Operations
Labour $5,640,000
Water $39,480
Stationery $227,520

Sales & Marketing

36
2024
ASSETS
Current Assets
Cash
Prepaid expenses $1,033,9370
Total Current Assets $1,033,937
Fixed Assets
Less: Accumulated
and fixtures $1,057,9200 $25,521,956
Current Liabilities
37
38

Yearwood Furniture Manufacturing Business Plan (GLS) 2020

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Yearwood Furniture Manufacturing Business Plan (GLS) 2020

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Yearwood

NAME: MR. GODFREY RICARDO YEARWOOD

express written permission of Yearwood Furniture Manufacturing.

Upon request, this document is to be immediately returned to Yearwood Furniture Manufacturing.

Name (typed or printed)

This is a business plan. It does not imply an offering of securities.

Our Mission and Vision Statement 5

Ricardo Yearwood. Yearwood Furniture Manufacturing was created to specialise on

kind in the Linden.

Yearwood Furniture Manufacturing will be a start-up venture in an ideal location. Yearwood

personal funds and loan funding.

Yearwood Furniture Manufacturing market’s is made up of mainly Public sector departments

major furniture channels and office supply stores.

prices, because of higher volumes.

accessories, glass, shelving accessories, and related purchases.

Our Mission and Vision Statement

Linden and to establish a one furniture manufacturing company in Guyana.

 Our mission is to establish a world – class furniture manufacturing business whose

 Complete commission the manufacturing plant

 Pay off the working capital

 Repay all the loan commitments

Our keys to success will be as follows

 Uncompromising commitment to the quality of the end product:

 Use of quality wood in all our products,

 Quality of end result.

workforce, and customers).

2. Carpenters and Furniture Markers

 Responsible for managing the daily activities in the workshop

steels, nails and accessories et al)

 Controls furniture distribution and supply inventory

 Supervises the workforce in the furniture manufacturing workshop.

Carpenters and Furniture Making Experts

 Responsible for manufacturing stationary sofas/sofa-sleepers

 Manufactures household and office metal furniture

 Manufactures custom architectural woodwork and other fixtures

 Manufactures showcases, partitions, shelving and lockers.

 Provides managements with financial analyses, development budgets, and accounting

market research to forecast trends and business conditions.

 Responsible for financial forecasting and risks analysis.

 Responsible for developing and managing financial systems and policies

 Responsible for administering payrolls

 Ensures compliance with taxation legislation

 Handles all financial transactions for the organization

 Serves as internal auditor for the organization

 Ensures that toiletries and supplies don’t run out of stock

 Cleans both the interior and exterior of the workshop facility

 Handles any other duty as assigned by the workshop manager.

will, in time, either recycle or dispose of the furniture.

Global Overview of Furniture Industry

and developing countries. The breakthrough in ready-to-assemble designed furniture has

Vietnam and Indonesia).

trends and is consequently losing market share.

An important feature of EU furniture consumption and production is evidence of polarisation

market segments particularly for high-end, expensive, design-led products. Ready-to-assemble

leading other Asian countries.

number of especially small manufacturers were forced to close down.

forestry industries in the region in cooperation with regional organisations.

The Marketing Strategy

ease of use, ergonomics, and practicality.

around Region 10.

it is actually a feature that enhances the sense of quality.

product offerings by stimulating consumer purchases.

produce top notch office and household furniture.