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  • Iron & Sanitary Store: Small Business Profile

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    Tahir Mahmood
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    This document provides an estimated project cost and profit projections for a proposed small business called Iron & Sanitary Store. The total estimated project cost is PKR 1,205,000, with the applicant providing 10% equity of PKR 120,500 and applying for a Kamyab Jawan loan of PKR 1,084,500. The projections estimate annual revenue growth of 10% and costs growing at 5% annually. Over the 8 year period, the business is expected to become profitable, cover its loan installments, and see increasing annual net profits reaching over PKR 312 million in year 8.

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    IT resesarch papers

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    Tahir Plan

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    This document provides an estimated project cost and profit projections for a proposed small business called Iron & Sanitary Store. The total estimated project cost is PKR 1,205,000, with the applicant providing 10% equity of PKR 120,500 and applying for a Kamyab Jawan loan of PKR 1,084,500. The projections estimate annual revenue growth of 10% and costs growing at 5% annually. Over the 8 year period, the business is expected to become profitable, cover its loan installments, and see increasing annual net profits reaching over PKR 312 million in year 8.

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    © All Rights Reserved
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    16 views4 pages

    Iron & Sanitary Store: Small Business Profile

    Uploaded by

    Tahir Mahmood
    This document provides an estimated project cost and profit projections for a proposed small business called Iron & Sanitary Store. The total estimated project cost is PKR 1,205,000, with the applicant providing 10% equity of PKR 120,500 and applying for a Kamyab Jawan loan of PKR 1,084,500. The projections estimate annual revenue growth of 10% and costs growing at 5% annually. Over the 8 year period, the business is expected to become profitable, cover its loan installments, and see increasing annual net profits reaching over PKR 312 million in year 8.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 4

    Small Business Profile

    IRON & SANITARY STORE


    Estimated Project Cost (PKR)
    Item Description Quantity Rate Cost
    Welding Plant 2 50000 100000
    Electic Drill Verma 1 50000 50000
    Cement Bags 100 600 60000
    Sand Trolly 10 10000 100000
    Bajri Trolly 10 12000 120000
    PVC Pipe 1 100000 100000
    Iron Pipe & Sarya 2 50000 100000
    Miscellaneous 1 100000 100000
    Sanitary goods (Taps, Flush toilet etc.) 4 50000 200000
    Estimated Cost of Operating Assests 930000

    Initital Setup Cost Estimate


    0
    Civil works & Renovation 5 2000 10000
    Sinage & Marketing 1 5000 5000
    Mics. Startup expenses 1 20000 20000
    Total Setup Cost 35000

    Estimated Monthly Business Expenses


    Stock Inventory 1 200000 200000
    Utilities 1 15000 15000
    Worker Salary 2 10000 20000
    Mics. Expenses 1 5000 5000
    Estimated Monthly Expenses 240000

    Total Project Cost 1205000


    Applicant's Equity 10% 120500 Kamyab Jawan Loan 1084500
    Interest Rate 3% Loan Tenor 8 EMI 12721

    Expense & Revenue Assumptions


    Count Rate Direct Cost
    Monthly Sales 200 2000 30%
    Revenue Cycle per Year 12
    Price inflation 10%
    Cost inflation 5%

    Projected Profit & Loss


    Year 1 Year 2 Year 3 Year 4 Year 5
    Revenue 4800000 5280000 5808000 6388800 7027680
    Direct Cost 1440000 1512000 1587600 1666980 1750329
    Contribution Margin 3360000 3768000 4220400 4721820 5277351
    Operating Expenses 2880000 3024000 3175200 3333960 3500658
    Operating Profit 480000 744000 1045200 1387860 1776693
    Installment 152649 152649 152649 152649 152649
    Net Profit 327351 591351 892551 1235211 1624044
    Revenure per Month 400000 440000 484000 532400 585640
    Operating profit per Month 40000 62000 87100 115655 148058
    Installment Coverage 3 5 7 9 12
    Year 6 Year 7 Year 8
    7730448 8503493 9353842
    1837845 1929738 2026225
    5892603 6573755 7327617
    3675691 3859475 4052449
    2216912 2714280 3275168
    152649 152649 152649
    2064263 2561631 3122520
    644204 708624 779487
    184743 226190 272931
    15 18 21

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