Professional Documents
Culture Documents
Business Plan On Maid Service
Business Plan On Maid Service
Business Plan On Maid Service
On
Kathmandu Enterprise Pvt. Ltd.
Submitted to:
Mr. Ashish Tiwari
Mr. Bishal Shrestha
Mr. Pradeep Rajopadhyay
Submitted by:
Sandarva Pal
Acknowledgement
My sincere thanks goes to the faculties of Ace Institute of Management, Mr. Ashish
Tiwari, Mr. Bishal Shrestha and Mr. Pradeep Rajopadhyay for providing me with study
material, guiding me, providing with valuable information for completion of the business
plan and helping me to make sound business development plan and giving me valuable
comments during this period.
Lastly I would like to thank everyone who has directly or indirectly supported me for
completing my business development plan
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
Executive Summary
Business venture aims to provide maid facilities for busy household of urban areas of
Kathmandu valley. The venture will be conducted under the management of Kathmandu
Enterprise Pvt. Ltd. This plan will serve as the financial and operational outline and plan
for the first five years of the venture‟s operation. The company will obtain a loan through
commercial bank in the amount of 12, 00,000. Additionally, remaining amount of Rs. 8,
00,000 will be financed by the founder.
The concept of Kathmandu Enterprise is to provide maid facilities such cooking, cloth
washing, dish washing, house cleaning, baby and old age care to the households in
Kathmandu valley. The venture will focus on middle, upper middle and upper class
people living in both private homes and separate apartments who do not have time for
such household activities. For this sake, the company plans to advertise its service
facilities through various media and above all it will rely more on personal links and
relationships. The venture will start from the beginning of 2013. The office will be
located in Koteshwor, Kathmandu.
The concept is entirely new of its kind. Even though there are no such players with
similar concept in the market, but still some indirect competition can pose a challenge to
Kathmandu Enterprise Pvt. Ltd. and its business concept.
The market survey conducted shows the business plan to be feasible and also financial
projections for Kathmandu Enterprise Pvt. Ltd. show the potential for success and
growth in the existing market.
Total initial capital investment will be Rs. 20, 00,000 with 40 % equity contribution and
60% loan.
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
Table of Contents
Acknowledgement........................................................................................................................ i
Executive Summary .................................................................................................................... ii
1. Company Overview ....................................................................................................... 1
1.1 Background of the Business ............................................................................................. 1
1.2. Basic Philosophy ............................................................................................................. 2
1.2.1 Vision ......................................................................................................................... 2
1.2.2 Mission ....................................................................................................................... 2
1.2.3 Objectives .................................................................................................................. 2
1.2.4 Critical Success Factors ............................................................................................. 2
1.2.5 Company Values ........................................................................................................ 2
1.3 Registration ...................................................................................................................... 3
2. BUSINESS ENVIRONMENT ANALYSIS ........................................................................ 4
2.1 Industry Analysis .............................................................................................................. 4
2.2 SWOT ANALYSIS ............................................................................................................ 5
2.2.1 Analysis of Kathmandu Enterprises Pvt. Ltd. .............................................................. 5
2.2.2 Analysis of Competitors.............................................................................................. 6
2.3 PEST Analysis .................................................................................................................. 7
3. SERVICES PROVIDED ................................................................................................... 8
3.1 Services............................................................................................................................ 8
4. MARKET RESEARCH AND ANALYSIS ......................................................................... 9
4.1 Primary Research ............................................................................................................. 9
4.2 Sampling Plan .................................................................................................................. 9
4.3 Research Instrument ........................................................................................................ 9
4.4 Target Market ..................................................................................................................10
4.5 Data sources ...................................................................................................................10
4.6 Survey Findings ...............................................................................................................10
4.7 Analysis ...........................................................................................................................11
4.8 Company strategy ...........................................................................................................11
5. Company Profile ...........................................................................................................12
5.1 Form of Business.............................................................................................................12
5.2 Legal Status ....................................................................................................................12
5.3Organization Structure ......................................................................................................12
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
LIST OF TABLES
LIST OF FIGURES
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1. Company Overview
Kathmandu Enterprises Pvt. Ltd is fully dedicated to make sure that the requests of its
clients will be carried out to the highest standards. Services provided by the company
allow people to get rid of the burden of having to do all the household chores by
themselves. Kathmandu Enterprises Pvt. Ltd will recruit and select female candidates;
new and experienced. They will be given orientation and training to prepare them to suit
the clients‟ requirements. The services cover maids working as housemaids, care
takers, cooks, and nannies.
All the maids will have to work under the terms and conditions of Kathmandu Enterprise
Pvt. Ltd. They will represent the company and the company will be responsible for the
work of maids. Salaries and benefits will be given by the company as per the contract.
The current scenario shows an opportunity for Kathmandu Enterprise to provide this
kind of services to households in Kathmandu Valley
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
1.2.1 Vision
“To become a top class service provider to households in Kathmandu”
1.2.2 Mission
Provide excellent professional services & improve its position as a leader in this field.
Build & maintain a team motivated & committed workforce with high work ethos; Use
customer satisfaction & act as an effective catalyst for making lives of people easier and
comfortable.
1.2.3 Objectives
To provide wide range of services related to domestic chores
To provide reliable and reasonable services all year round
To create congenial working environment where all employees rights are
protected
To work towards fair competition
Customer satisfaction will be the first priority which will be achieved through
customer oriented services.
Appreciate suggestions and recommendations given by customers and
employees
Regularly seek feedback from customers and improve service accordingly
All the employees can work with dignity and have gainful employment
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
1.3 Registration
In order to register the company under the name of “Kathmandu Enterprise Pvt. Ltd”
some of the legal formalities are done which are as follows:
An application form is submitted along with Rs. 5 stamp at the office of the
registrar which is situated at Tripureshwor. Besides this citizenship certificate of
owner and alteast 5 people and the company register stamp is provided to the
office of the registrar
Once the company is registered the next step is to take PAN number from the In
Land Revenue Department which is situated at Lazimpat. For this necessary
documents are : Application Form, copy of the citizenship certificate of the
partners, copy of the company/firm registration certificate, two passport size
photo of the partners, hand drawn sketch of the business location
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
Threat of New Entrants: In present situation there are only informal groups providing
the service but seeing the profit making opportunity it is expected that there will be
entrance of huge number of companies trying to duplicate business plan of Kathmandu
Enterprises.
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
Threat of Substitutes: There arefew services that are of close substitute to the service
provided by the company. Laundry and Dry Cleaners companies are the major
substitutes for cloth washing and old age homes and Kindergarten for Care taker
service but these are expensive compared to company‟s service. So the threat of
substitutes is moderate
Bargaining Power of Supplier:For Part time maids the suppliers will have weak
bargaining power since the company can directly negotiate with potential maids
eliminating suppliers‟ role. Hence they will have weak bargaining power.
Bargaining Power of Customer: The ability to bargain for the price and quality in the
present period will be high of customers. Also with the increase in number of new
companies providing similar services will further make their bargaining power of
customers strong.
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
Weakness
The company‟s management team does not have prior experience in this field. It does
not have established connection with dispersed individual maids in the Kathmandu. It
lacks better technology to maintain the record of employees and transactions.
Opportunity
The changing lifestyle of people and more inclination towards nuclear family provides
opportunity for huge demand for maid service within Kathmandu. Also there is an
increasing trend of keeping a part time maid indicating the rising living standard of
people. By the time competitors will enter the market the company will have penetrated
in the major areas of Kathmandu. Moreover, so the company can get the first mover
advantage.
Threat
The existing businesses providing substitute services like laundry and dry cleaners,
cook services and old age home centers and Kindergarten could pose a threat to the
company. Also the direct hiring of individual maids by households might reduce the
demand from the company and also customers will have high bargaining power.
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
-Political/ Legal: Political uncertainty and instability of government with the collapse
of constituent assembly can negatively affect the business plan. But favorable business
scenario for investment has increased after the agreement of the Peace process and
formal end of civil war.
The proposed company should be registered in the Company Office of Registrar and
the trademark should be taken for the product. The company should be oblique to the
legal rules and regulations. Legal rules and regulation remains changing, rules such as
tax, labor union acts can reduce the earning of company.
-Socio-Cultural:The country is seeing the changing family structure and rising middle
and upper middle class. Women‟s participation in the job market and ageing population
is another social changes happening in the country. This can be an opportunity for the
company to commence a business.
-Technology:The advancement in the ICT has given businesses to better manage its
customer profile, transactions and relationships with key stakeholders. Nepalese
companies have realized the importance and power of having updated technology and
have focused on Product innovations, applications of knowledge, new communication
technologies. Kathmandu Enterprises can benefit from this rapid change in technology
as long as the cost of new technology is reasonable.
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
3. SERVICES PROVIDED
3.1 Services
The company will specialize in providing following services to households
House Cleaning
Dish Washing
Cloth Washing
Cook
Care Taker
o Baby
o Old Aged
o Disabled
All the employees working as house cleaner, dish washer, cloth washer, cook and care
taker will do only those tasks for which they are assigned for and will be categorized
under the „part time‟ workers and will have to do all the household chores everyday
The customers will have to fill a form mentioning their need and type of service they
require. Then the company will either search the maid or assign the existing maid to the
customer‟s service.
Customers can directly contact the company for any complaints regarding the work of
maids. Customers can discontinue the service at any time.
Company will provide service with experienced maids and train them if necessary.
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
To know the specific needs and expectation from our service so that their
Determine the price range they will be willing to pay for each type of service.
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
Kathmandu Valley
Residential area (private homes, apartments and colonies)
Demographic
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
4.7 Analysis
The survey of 60 households from two wards showed that 38% of the households need
maid service. This shows that about 3,43,891 households/families need maid service
(40,00,000/4.42=904977*38%=343891; population of Kathmandu is about 4 million and
average household size taken 4.42 from ward no. 36 of table no. 6)
The demand for the service is expected to increase annually as the survey shows high
number of working women and nuclear family with two income households.
The survey might not be representative because only 2 wards was taken as sample
from 36 total wards in Kathmandu but the statistical tools used to analyze makes it
statistically valid.
*Appendix: 1.13
Primary source:
Secondary Source:
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
5. Company Profile
5.3Organization Structure
I, Sandarva Pal, will be the major decision maker in the overall management of the
company. I will be responsible for the overview of the overall business. I will be working
as managing director of the company. So I will be responsible for planning, goal setting,
strategy formulation and implementation and manage daily operation of the company.
The company will hire two officers; Administrative officer and Human Resource/
Customer Relationship Officer. Both the managers will be given full authority to manage
and operate their respective divisions. All are independent to formulate plans and
strategy for their divisions. However, final approval will be made by managing director
Besides maids the total number of staffs at the initial years of operation will be four. All
the staffs will be made permanent within two months of work in the organization.
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
Managing Director
Database
Operator
Maids Security
Guard
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
Part time staffs consist of maids. Personal network, referrals and agents will be used to
recruit of these staffs. Selection will be done on the basis of prior work experience and
no criminal records (all the maids will be checked for criminal records by using Criminal
Records Bureau (CRB))
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
6. Operational Plan
Reliability
Our service will be reliable in terms of consistency in the service provided to
customers. For this the company plans to focus on following vital aspects:
Accessible
Company will be located in area where prospective clients and staffs can easily
reach the office. For this the company has chosen Koteshwor area. This will help
company in providing quality service in following ways:
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
This site location provides the best proximity to customers using public
transportation.
Customers will not have difficulty in finding the office.
The office building is situated near the main road with good infrastructure.
Office building has space (room) for expansion. This will help to setup
additional departments to better cater service to clients in future.
Courtesy
The values of the company will guide its staffs to serve the customers with
hardwork, sincerity, loyalty and devotion.
6.1.2 Training
Provide one month training prior to formal operation of the service. The training
will focus on teaching maids about ways to conduct activities in an effective way.
Provide vocational training to upgrade skills of staffs
Training will highlight on need and importance of providing reliable and
satisfactory services.
6.1.3 Securitymeasures
All the staffs will be registered with the company, their criminal records will be
checked with Criminal Records Bureau and company will take responsibility of
any immoral activities of staffs.
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
The well-being and security of the customers will be the company‟s top priority. This is
especially vital for image /reputation buildingof the company.
The prospective customer will enquiry about the services provided by the
company
The enquiry will be handled by the customer relationship officer
Customers will visit the company office and talk with customer relationship
officer
Customer will fill a form mentioning the type of service they need and the
timings.
Appropriate employee (maid) will be selected and given needed training and
information on the need of the customer.
Enter into contract with the customer regarding the terms and conditions of
employment, payment procedure, benefits to maids and termination of service.
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
From the second year the company plans to increase the number of employees by 50%
of the previous number.
Year House Cleaner Cloth Washer Dish Washer Cook Care Taker
1 8 8 8 10 7
2 12 12 12 15 10
3 18 18 18 22 15
4 27 27 27 33 22
5 40 40 40 49 33
Considering all the above factors, I have selected the office site inKoteshwor,
Kathmandu.This site location provides the best proximity to customers using public
transportation. Customers will not have difficulty in finding the office. Most importantly it
provides proximity to target business area (Koteshwor is one of the most populated
wards of Kathmandu). The office building is situated near the main road and has room
for expansion. The office space meets the requirement of 900 square feet for the office
setup.
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
Maids‟ Room
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
Human Resource/ Customer Relationship Officer: He/She will be responsible for all
the activities related to human resources in the organization. Recruitment, selections,
development and training are some of the responsibility performed by Human Resource
officer.
He/ She will also be responsible for managing customer relationship. The duties to be
performed will include: handling potential customers enquiry and existing customers
complaints, search for new customers, profile customers‟ needs and maintain
communication with potential clients.
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
Administrative/Account 1 15,000
Officer
Human Resource/ 1 20,000
Customer Relationship
Officer
Database Operator 1 8000
Cook 9 2500
Total
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
Position Qualifications
Shift 1/ Part time maids: It will consist of cook, dish washer, house cleaner. They will
work for three hours a day.
Shift 2/ Part time maids: It consists of cloth washer and care taker. They will work for
five hours a day.
Kathmandu Enterprises will operate throughout a week. Maids can take leave for up to
4 days a month by giving prior notice to management
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Currently, the demand for shift 2 category maids is quite low. Each maid will look after
single client‟s need. This is a category where special skills are needed. Some of the
maids in shift 2 will come from shift 1 so a single maid can work in two places in a day.
Remaining 50% of maid need in shift 2 category will hired
6.8Operation Schedule
It is estimated to take about five months to carry out pre-operating activities. That
means starting from August 1 2012 the company will tentatively come into operations in
January1 2012.
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
Search and evaluation of the office site is expected to take about one month.
Finalization of site will take tentatively one month. Completion of architectural layout
design will be completed within one month. Complete layout in next one month.
Marketing/ Promotion
The company will conduct all the marketing and promotional activities throughout its
operational years. Also it will carry marketing activities for first one month prior to
operation and continue for following months.
Office Supplies
Evaluation of suppliers/Sellers, Selection and Purchase of office supplies will take about
three months
Human Resource
Recruitment and selection of employees will take about four months and one month for
training.
Service
Kathmandu Enterprise Pvt. Ltd will formally begin its operation from January 1, 2013.
6.9 Procurement
Furniture and fixtures will be bought from MD furniture wholesalers in Maharajgunj.
Equipments will be bought from Hirand Suppliers situated in Sundhara.
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
7. Marketing Plan
The demand for the maid service is related to the changing demographic and
geographical factors. The following table shows the household size in different wards
of Kathmandu. It is a good indicator to identify the potential wards to target and do
marketing/ promotional activities:
Ward HH Ward
Population Population HH size
No. size no
1 8464 5.01 19 7400 5.01
2 13655 4.27 20 8240 4.84
3 20782 4.55 21 12369 4.93
4 29539 4.36 22 5840 5.79
5 15340 4.29 23 8289 4.85
6 39316 4.48 24 5272 5.7
7 39530 4.24 25 4310 5.79
8 9434 4.36 26 3764 4.97
9 29263 4.36 27 7789 5.05
10 25977 4.21 28 5462 5.02
11 15244 4.37 29 24543 4.4
12 10313 4.95 30 9896 4.85
13 29721 4.62 31 14502 4.46
14 34488 4.4 32 24355 4.28
15 32441 4.36 33 21597 4.26
16 45450 4.21 34 46136 4.18
17 19876 4.36 35 35184 4.04
18 8065 4.66 36 671846 4.42
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
The above table shows the most attractive ward to target and serve is ward number 36
which has the highest population i.e. 6, 71,846. However, looking at the household size it
is the ward number 22 and 25 which has the highest household size i.e. 5.79. The
company can expect higher demand in these wards (22, 25 and 36).
Growth stage
Number of household‟s starts to increase at higher rate
Company will increase price of service to adjust demand pull and supply
push inflation in later years
Focus will be to train employees.
Advertising/Promotion goal will shift from awareness to convincing and
encouraging use of service
Maturity
Retaining existing customers
Reducing price according to competition and demand
Aggressive sales promotions
Strategic alliance, if possible.
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
Decline
Reviewing sales, market share, and cost and profit trends on a real time
basis and designing counter strategy
Maintain brand image
Reposition or revive brand to move back to growth stage, look for new
segments
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
Greeting cards
Greeting cards can be used as a great Marketing Tool when it comes to repeat
business and referrals. Kathmandu Enterprises will use them to thank customers
for accepting our services and for the continuity of the business. Kathmandu
Enterprises send them greeting cards for most of the holiday occasions.
Kathmandu Enterprise will try to send cards as early as possible so it can be the
first in our client‟s mailbox and a way to always remember us. Kathmandu
Enterprise also use handwritten messages to show more appreciation to
customers
Print advertising
For a maid service business it makes no sense and would be a waste of money
to advertise in a large magazine or buy a TV commercial. Besides being
expensive, these ads will most likely not reach our target audience. The common
print ad, run in a local newspaper or shopper, is the most basic unit of advertising
Electronic media
Kathmandu Enterprise plan to buy ads in electronic media especially in local FM
stations and TV scroll advertisement. FM advertisements will be carried out 20
days in a year and its frequency will increase every year. TV Scroll
advertisements will be carried out 135 times in a year and its frequency will
increase every year. This can deliver information right to the households that
need our services.
Other Media
Other inexpensive and efficient strategies that Kathmandu Enterprises target will
use are Referrals, Newsletters, and Word of Mouth (WOM).
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
7.5 Profitability
The company is expected to incur losses for first two years of operation and then earn
profit from third year at a rate of about 60% every year. Profitability can be in terms of
Net income generated for the company.
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
age group of 27-59 wish to have maid service the most followed by age group of 60 and
above and family with 3-4 members are in need of maid service the most. So with this
finding the company plans to target and sell its service to age group of 27-59 and family
size of 3-4 (this will be give high priority groups among all) with total of 40 maids at the
beginning year of its operation. And increase the number of maids by 50% annually.
The company‟s strategy is to have cost focus strategy so it will not increase its number
of maids aggressively. Service charge will increase 5% in 2 nd and 3rd year and by 10%
thereafter annually.
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8. Financial Plan
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*Appendix: 3.4
**Appendix: 3.7
***Appendix: 3.9
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#Appendix: 3.3
*Appendix: 3.10,
**Appendix: 2.1
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8.7 Projected Cash flow Statement for the next five years
Particulars Year
Pre- 2013(Rs.) 2014((Rs.) 2015(Rs.) 2016(Rs.) 2017 (Rs.)
operating
Cash Inflow
Beginning Balance 1,388,500 548,715 426,154 636,906 1,208,945
Equity 800,000
Bank Loan 1,200,000
Interest on Investment 50,000 30,000 60,000 160,000
Revenue 2,538,000 3,994,200 6,317,172 10,390,824 17,080,056
Total Cash Inflow (A) 2,000,000 3,926,500 4592915 6,773,326 11,087,730 18,449,001
Cash Outflow
Fixed Assets 556,500
Principal and interest 300,185 300,185 300,185 300,185 300,185
payment*
Operating Expenses
Staff salary 846,000 930,600 1,023,660 1,126,026 1,238,629
Maid salary 1,203,600 1,981,320 3,284,424 5,396,820 8,866,704
Rent 250,000 275,000 302,500 332,750 366,025
Audit/Legal charges 5,000 5,000 5,000 10,000 10,000
Marketing expenses 150,000 165,000 181,500 199,650 219,615
Electricity 20,000 20,000 20,000 20,000 20,000
Telephone expenses 48,000 52,800 58,080 63,888 70,277
Office 25,000 27,500 30,250 33,275 36,602
Supplies/Stationery
Training expenses 20,000 22,000 24,200 26,620 29,282
Miscellaneous 10,000 11,000 12,100 13,310 14,641
Tax paid 76,356 294,521 756,261 1,547,971
Preliminary Expenses 55,000
Total Cash Outflow (B) 611,500 2,877,785 3,866,761 5,536,420 8,278,785 12,719,931
Surplus/Deficit (A-B) 1,388,500 1,048,715 726,154 1,236,906 2,808,945 5,729,070
Investment # 500,000 300,000 600,000 1,600,000 3,000,000
Ending Cash Balance 1,388,500 548,715 426,154 636,906 1,208,945 2,729,070
*Appendix: 3.8
# Investment is made for short term at the interest rate of 10%
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**Appendix: 3.8
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
Analysis: The company will have negative profit margin for the initial year. However,
from second year it will increase by about 8% annually. Return on assets is high in the
beginning year. It will increase by 24.42% in 2nd year and by 13.41 % in 3rd year but in
third year it will increase at minimum rate. ROE is negative in the first year due to huge
loss in year 1, it will increase positively from 2nd year due to increase in profits.
Analysis: Since the NPV is positive, the business is feasible and lucrative.
Analysis: Here the payback period for the initial investment is 4.12 years which is less
than the life of the project. Therefore, from the perspective of the payback period, the
project is feasible.
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
For establishing Kathmandu Enterprise Pvt. Ltd, the owner should also have a clear
concept and understanding of possible future uncertainties that might be created.
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
Throughout the entire life cycle of a business, there are going to be a number of natural
time gradients that exists, and are more than likely to be defined by the eventual and
natural ebbing and flowing of the task workload and the momentum of the team‟s
performance and the business of the schedule. However, it is typically helpful in
attempting to assure that the business is moving effectively as well as to allow points in
time for the management team to pause and look back on what has been accomplished
to date.
August
Establish conceptual ideas of maid services
Begin research of the industry and trends
September
Business plan: This will be done as a roadmap for the organization. It will be an
indispensable tool for the ongoing performance and improvement of the
company.
October
Complete Registration and Licensing: This will be done within the first three
months. This includes setting up the physical office where business will be
transacted.
November
Site search, evaluation and selection
Completion of architectural layout design
Complete recruitment and selection
Select suppliers
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December
Complete layout
Training program: This will be the development of a training program for the
employees. The employees will receive initial sessions of training up-front, but
will undergo constant training and orientation part of our constant effort to deliver
quality service.
Establish corporate relationship
January
Begin operations
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To serve these new segments the company will hire additional employees in
management and as well as hire additional maids. Provide training to maids according
to the need of new clients.
Nonetheless, due to no entry barriers for this industry, there might exists tough
competition in the market and sustaining in the market might become difficult. So if our
company could not retain itself in the market, we need to pre-plan for the exit strategy.
In such worst situation if the company goes in unfavorable condition, we will sell the
company.
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
APPENDIX
1. Market Research
General information
Address……………………………….Occupation………………
Specific information
If, yes, then what kind of tasks does your helper (maid) do (multiple
Response)
3. How much do you pay for your part time/ full time maid?
a. Part time: Rs……………….. b. Full time: Rs……………………
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
………………………………………………………………………………………………
………
………………………………………………………………………………………………
…….
7. For what purpose you need a maid service the most? (single response)
a. House Cleaning b. Dish Washing c. Cloth Washing
d. Cooking
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
1.8 Cross tabulation between age group and willingness to have maid service
1.9 Cross tabulation between number of family members and willingness to have
maid service
Yes No
Total 34 26
1.10 Cross tabulation between occupation and willingness to have maid service
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
1.11 Cross tabulation between number of family members and purpose of having
a maid
Monthly
Income House Dish Cook Cloth Care
Cleaning Washing Washing Taker
8000-12000 1 3 4
13000-17000 3 8 4 8 1
18000-22000 2 3 2 3 1
22000-26000 2 2 2 3
Above 26000 1 2 1
1.12 Cross tabulation between monthly income and willingness to have maid
service
Yes No
Total 32 28
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
1.13 Findings:
1. Currently 38% of the household need atleast one type of maid service; it is high
among household living in apartments (46%) whereas 30% among people living
in single homes.
2. Age group of 27-59 wish to have maid service the most (77.77%) followed by age
group of 60 and above (16.66%), it is low among age group of 16-26 (5.55%)
3. Family with 3-4 members are in need of maid service the most (50%) followed by
5-6 (32.35%).
4. In occupation, private service holders are in need of maid service the most (50%)
followed by businesspersons (32.35%).
People with monthly income above 13000 and above 26000 are willing to have a maid
2. Marketing Plan
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
3. Financial Plan
3.3 Percentage increase in service revenue for the next five years
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
Staffs/ Year 1 2 3 4 5
24000 26400
Managing Director 0 0 290400 319440 351384
18000 19800
Administrative Officer 0 0 217800 239580 263538
Human Resource/Customer 24000 26400
Relationship Officer 0 0 290400 319440 351384
10560
Database Operator 96000 0 116160 127776 140554
Security Guard 90000 99000 108900 119790 131769
846,0 930,6 1,023,6 1,126,0 1,238,6
Total 00 00 60 26 29
3.6 Maid salary per month for each year for the type of work done
Year House Cleaner Dish Washer Cloth Washer Cook Care Taker
1 2100 2200 2100 2500 3200
2 2310 2420 2310 2750 3520
3 2541 2662 2541 3025 3872
4 2795 2928 2795 3327 4260
5 3074 3221 3074 3660 4686
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
Year
Types of Service 2013 2014 2015 2016 2017
House Cleaning 201600 332640 548856 905580 1475520
Dish Washing 211200 348480 574992 948672 1546080
Cloth Washing 252000 415800 701316 1140360 1881288
Cooking 270000 462000 762300 1277568 2108160
Care Taker 268800 422400 696960 1124640 1855656
Total 1,203,600 1,981,320 3,284,424 5,396,820 8,866,704
Loan Amortization
At D:E=60:40 (1200000:800000)
A=300185
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
Particulars Sq. Ft. Rate Rent per month Rent per Year
Office Space 850 24.5 20,833 250,000
Year 1 2 3 4 5
Net Income/Loss (361,900) 229,068 883,562 2,268,783 4,643,915
Add: Depreciation 111300 111300 111300 111300 111300
Cash Flow -250600 340368 994862 2380083 44755215
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
Service rate: It increase by 5% in 2nd and 3rd year and then by 10% thereafter
annually.
Operating Expenses
Audit/Legal Charges: It will remain constant for 1st, 2nd and 3rd year and
increase by 50% of preceding year.
Interest Rate: The long term interest rate for the organization will be 13% and
this interest rate is not subjected to change for 5 years. This is in accordance with the
contract with the lending bank.
Tax Rate: Corporate tax rate is 25%. They are paid in the year they are
occurred.
Net Income/Loss
Profits: All the profits (net income) will be retained for further investment.
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
Current Assets
Fixed Assets:
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
5. Operation Plan
5.1 The actual layout design
Managing Director
Room
Administrative
/Account Division
Human Resource
Division
Appendix2
Security Guard’s
4.2 Operation Schedule for First Year
Room Entrance
Year 0 (in months) year 1 (in months)
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
Type Of work 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10
Preparation
Preparation for
getting Licence
Documentation
for Licencing
Licence
Approval
Preparation for
Site Location
Search and
Evaluate Site
Finalize Site
Completion of
architectural
layout design
Complete layout
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Business Plan: Kathmandu Enterprise Pvt. Ltd.
Marketing/
Promotion
Office Supplies
Evaluate
suppliers/Sellers
Select and
Purchase of
office supplies
Human
Resource
Recruitment and
selection
Training
Service
Start Service
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