Business Plan

Ms.N.Jasintha
 BUSINESS PLAN
Business plan for Co-Coconut Shop
CO-COCONUT SHOP
• OUR VISION
To be the number one company of producing high quality Coconuts
products in Sri Lanka.
• OUR MISSION
To provide customers with the best value, quality products of coconut
items and excellent service.
BUSINESS PROFILE
• Business Name: Co-Coconut Shop
• Abbreviated Name: CCS
• Address: Co-Coconut shop
Temple Road
Nallur, Jaffna
• Owner: Ms.B.Kishona
• Tel Phone no: 0212223850
• Email Address: ccsnallur@gmail.com
• Web site: www.ccs.lk
• Type of the Business: Sole Trade
• Products: Coconut, Coconut oil, Scrap Coconut, Coconut water
• Contact Person: Ms.B.Kishona Owner 077-7765334
Ms.K.Keerthi Administration 077-6664144
EXECUTIVE SUMMARY

Co-coconut shop is a start-up business established in Nallur area in

Jaffna with the touch of traditional coconut products such as, Coconut,
Coconut oil, Scrap Coconut, Coconut water. We have planned to
produce the high quality coconut based products with an idea of
greenery items. The potential market of these products are very
promising. With the rapid growth technologies, production items and
machineries, are placed and appropriate location is selected. In order to
have separate administration in the business, outside person has been
appointed as a manger of this organization. Since this is a sole trade
business, there is no any legal consideration regarding the business.
Owner and the manger of this business have strong backgrounds in
entrepreneurship.
MARKETING PLAN
 1.1 DESCRIPTION OF PRODUCTS

Products and Service already Marketing Products and Services expecting to Market
1.Coconut 1.Coconut
2.Coconut Oil 2.Coconut with shell
3.Coconut Oil
4.Scrap Coconut
5.Coconut Water
 1.2 TARGET MARKET

Already captured by existing business Target Market

1.Nallur 1.Ariyalai
2.Thirunelvely 2.Kokuvil
3.Kantharmadam 3.Kopay
4.Kalviyankadu 4.Velanai
5.Chundukuli
6.Chavakacheri
 1.3 TARGET CUSTOMER SEGMENT

Products and Services Area Target Customer

Coconut Nallur Devotees, Residents
Scrap Coconut Nallur, kantharmadam, kopay Working women

Coconut with shell Velanai Manufacturers

Coconut Oil Kokuvil, Kopay Residents
Coconut Water Nallur Tourist
 1.4 TARGET CUSTOMER SEGMENT

Total demand for the annual products or services in the proposed area.
Products and Services No of customers Usage (Rate) (per day) Total annual demand

Coconut 15000 01 5,475,000

Coconut with shell 5000 01 1,825,000

Scrap Coconut 4000 ¼ kg 365000

Coconut Milk 2500 0.250 liters 228125
Coconut water 10000 01 3650000
 1.5 COMPETITORS MARKETING STARTEGY

Competitors Product Price Type Promotion

Nallur Coconut 85 Whole sale Offers and Discount

Thirunelvely Coconut 80 Retail Advertisement

Kantharmadam Coconut 85 retail Direct marketing

Kalviyankadu Coconut 75 Whole sale Discount

1.6 MARKETING STARTEGIES OF THE PROPOSED BUSINESS PLAN
1. Product Strategy
Under the one roof, we planned to sell different types of coconut products. As
we considered about working people, our proposed plan has an idea to produce
scrap coconut for making customers to use it immediately.
2. Pricing Strategy- With consideration of market price the price is decided
3. Placing Strategy- Proposed location is Jaffna
 1.7 SALES FORECAST

Product Proposed selling Unit price Annual income

quantity

Coconut 150000 90 13,500,000

Coconut with shell 50000 60 3000000

Scrap Coconut 8000 kg 120 960000

Coconut milk 6000 l 150 900000

Coconut water 90000 80 7200000

=25,560,000
1.8 Proposed Marketing Expenses
Advertisement-5000+ Promotions- 3000
Total=8000
PRODUCTION PLAN
2.1 Production process (Service delivery process)
Other than the coconut and coconut with shell and coconut water,
there must be a production process for scrap coconut and coconut
milk and oil.
 2.2 Fixed assets of the business

Assets Purchased value Life of assets Depreciation Depreciation value

Land and Building

Coconut Scraping 25000 5 20%

machine 5000

Fridge 45000 10 10% 4500

Delivery van 1250000 20 5% 62500
Total Annual Depreciation 72000
2.3 Annual Raw material

Raw Material Required Quantity Unit price Total value

Coconut 250000 47.50 11,875,000

Coconut water 95000 60 5700000

Coconut with shells 50000 47.5 2375000

Scrap coconut 10000 90 900000

Annual raw material requirement 20,850,000

2.4 Labor requirement (only for manufacturing)

Designation Registered No Basic Salary EPF 12% ETF 3% Total Expenses

(to be paid by
employer)
8%, 12%
1. Cashier E 01 20000*12=240000 28800 7200 36000

1. Supervisor E 02 18000*12=216000 25920 6480 32400

1. Labor E 03 10000*12=120000 14400 3600 18000

1. Cashier E 04 12000*12=144000 17280 4320 21600

1. Sales man E 05 10000*12=120000 14400 3600 18000

840000 126000

=966000
2.5 Production overhead cost/indirect

Overhead items Expenses

Electricity 25000
Rent 100000
Vehicle Repair 5000
Depreciation of Fixed assets 72000
Annual Over head 202000
2.6 Total production Cost
Product Quantity Raw material Labor Cost Overhead Total Cost (Per Total Cost
produced Cost Cost unit)
Coconut 170000 8075000 170000 63000 48.87 8308000

Coconut with 60000 2850000 - 10000 47.66 2860000

shell

Scrap Coconut 10000 kg 900000 40000 24000 96.4 964000

Coconut 95000 5700000 15000 60.15 5715000

water
Total 17525000 210000 112000 17847000
production
cost
ORGANIZATION AND MANAGEMENT
PLAN
• 3.1 Legal status of the business
• We have registered the business under the act no 7th of 1918 Business
name registration Act with the name of Co-Coconut shop as a sole trade
business.
• 3.2 Experience and skills of the Entrepreneur
• The team of the co-coconut business is having industrial knowledge
regarding the coconut business and family members are more supportive
for this business. Ms.B.Kishona who is the owner of this business who has
received the BBA degree in marketing specialization. She has been
working in Singer PLC as an executive for five years.
3.3 Organization Structure (Organization structure
of the staffs)

Persons Marketing Production Purchasing Administration Financial

Aspects

Keethika *

Aarani *

Krishanthy *

Shayini *

Kishona *
3.3 Administrative Cost
Activity Cost

Rent 10000*12=120000

Electricity 2000*12=24000

Telephone 2000*12=24000

Cashier 15000*12=180000

Supervisor 18000*12=216000

Total =564000
3.5 Pre-operating Activity
Activity Duration (Week) Cost (Rs)
1 2 3 4 5
Finding the place * 2000

Registration * 3500

Telephone connection * 1800

Purchasing machineries * 2000

Recruitment of the staff * 1000

=10300
FINANCIAL PLAN
4.1) Project Cost Cost item Existing
Entrepreneur’s
Proposed
Loan
Total Cost

(Capital requirement) Equity

Fixed Assets
Coconut Scraping 25000 25000
machine
Knife 5000 5000
Knife 45000 45000
Delivery van 400 000 850000 1250000
Total Fixed Cost 1325000
Pre-operating
expenses
Finding the place 2000 - 2000

Registration 3500 - 3500

Telephone 1800 - 1800
Connection
Purchasing 2000 - 2000
machineries
Finding the 1000 - 1000
 Working Capital

Raw material 17525000

Labor 966000+210000
OH 202000+112000
Marketing Expenses 8000

Admin Expenses 564000

Total working capital 19,587,000

requirement

Total Projects Cost (A+B+C) 1325000+10300+19587000

= 20,922,300
4.2 Loan Repayment Schedule

Loan is repaid in 5 annual installment Starting Annual Annual interest Ending balance
balance installment
Annual Capital Requirement=850000
850000 170000 85000 680000
5 680000 170000 68000 510000
510000 170000 51000 340000
=170000
340000 170000 34000 170000
170000 170000 17000 0
=255000
 Amount Amount
Sales income 25,560,000
Profit and loss account Less-Direct cost

Raw material 17,525,000

Labor cost 1,176,000
Total production 18,701,000 (18,701,000)

Gross profit 6,859,000

Less-Indirect Cost

Marketing Expenses 8000

Administration Expenses 564000
OH (314000-72000)
Total Indirect Cost 814000 (814000)
Total activate profit 6045000
Less Depreciation 72000
Loan interest 255000
Pre operating Expenses 10300
(337300)
Net profit before tax 5,707,700
Less Income tax (*8%) (456616)
=5707700*0.08=

Net profit after tax 5251084

4.3 Financial Analysis Profitability Ratio =Net profit before tax*100
Sales
Return on Investment= Net profit before tax * 100
Total projection cost
Payback period = Total projection cost

=5707700/25,560,000*100=22.33% NPBT+ Depreciation +Interest

=5707700/20,922,300*100=27.28%

=20,922,300/(5707700+72000+255000)= 3.46 yrs

• COGS = Beginning Inventory + Purchases During the Period – Ending
Inventory.
• Gross Income = Gross Revenue – COGS.
• Net Income = Revenue – COGS – Expenses.

• COGS-Cost of Goods in sales