Business Plan

Tiwari Pashu Farm

  Legal status of the firm
Tiwari Pashu Farm is located in Devdaha 10 Bhaluhi, Rupandehi, it
was incorporated in 2078 Shrawan 05 On sole proprietorship of Mr. Toplal
Tiwari. Firm is registered in Department of Cottage & Small Industries,
Rupandehi with registration no.22233. It is also registered in Inland
Revenue Department under PAN no.616095416 on date 2078 Shrawan 7.

Name of the firm Tiwari Pashu Farm

Date of Registration 2078/04/05
Nature of Business Animal Husbandry
Registered With Department of cottage & small Industries
Registration Number 22233
Registered Address Devdaha – 10, Bhaluhi, Rupandehi
PAN Number 616095416

 History of Firm
Tiwari Pashu Farm upon registration was registered under PAN. In
FY 2078-79, on view of growing business and aim for higher opportunities.
Tiwari Pashu Farm supplies customer with the all items of dairy
products. Some of the items we sale are listed as following:
1. Buffalo Milk
2. Cow Milk
3. Various Dairy items like curd, cheese, yoghurt, butter, cream, etc.
We are popular in the market as one of the Farm where all kind of
dairy items are available at affordable price. Our customer service is also
one of the renowned in related field. We also have facility of home delivery
for our customer.
  Capital Structure:
The composition of Capital of Firm is as Followed:
Firm was registered under Department of cottage & small Industries
on Fixed capital of Rs. 19,99,000.. Firm is a sole proprietorship firm
registered in the proprietorship of Mr. Top Lal Tiwari.

 Details of Proprietor
Name Date of birth Citizenship No Address
Top Lal Tiwari 9/5283 Devdaha-10,Rupandehi

 Management Personal of the Firm:

The management of the firm is composed of the highly skilled and
qualified personal. The proprietor has obtained long experience in the
Animal Husbandry. Further family of proprietor is also involved in the work
for his assistance.
After long years of working experience in the similar field, he made
endeavor to expand his Animal Husbandry. The encouraging factor for this
venture was good community and support for such business.Their social
background in the area is very good.

 Objective/Goals of the firm

As specified by the management of the firm, the main objectives of
the firm are as follows:
1. To establish all in one Animal Husbandry Farm in Devdaha Market
2. To supply the need of all kind of dairy products.
3. To minimize the need of roaming the market for Animal Husbandry
4. To further develop and promote the Tiwari Pashu Farm as top Animal
Husbandry farm of Devdaha and surrounding areas.
  Short Term Target of the Firm:
Animal Husbandry market is scattered in the Bhulahi area, Tiwari Pashu
Farm wishes to attract the customer by providing quality dairy products in
affordable prices. Financial target of Tiwari Pashu Farm is as following:

Particulars
2078-79 2079-80 2080-81 2081-82 2082-83
Income          
Gross Sales 3,200,00 4,800,00
0 0 6,720,000 8,736,000 11,356,800
Cost of Good sold 1,953,60 2,942,40
0 0 4,060,800 5,201,280 6,761,664
Gross margin 1,246,40 1,857,60
0 0 2,659,200 3,534,720 4,595,136
           
Indirect Expenses          
Administrative Expenses 759,0 1,209,00
00 0 1,650,600 2,289,000 2,944,200
Financial Expenses 160,0 160,0 160,00
00 00 0 160,000 160,000
Total Indirect Expenses ''B'' 919,0 1,369,00
00 0 1,810,600 2,449,000 3,104,200
Profit(loss) before Depreciation and 327,4 488,6 848,60
Tax(A-B) 00 00 0 1,085,720 1,490,936
Depreciation 77,5 114,1 90,25 71,517.
00 25 6.25 81 56,780.14
Profit(Loss) before Income Tax 249,9 374,4 758,34 1,014,202.1
00 75 3.75 9 1,434,155.86
Provision for Income Tax 140,00 144,970. 291,954.55
- - 0 77
Profit(Loss) after Tax 249,9 374,4 618,34 869,231. 1,142,201.31
00 75 3.75 42
           
Profit Transferred to Balance 249,9 374,4 618,34 869,231.
Sheet 00 75 3.75 42 1,142,201.31

 Financial Requirements
  Requirement of Cost & Composition

Particular Total Cost To be Financed To be financed

by loan by Internal
Sources
Working 39,90,000 20,00,000 19,99,000
Capital
Investment
Total 39,90,000 20,00,000 19,99,000

The total capital investment requirement of the firm is divided in the ratio of
around 49.99% for internal resources and the remaining around 50.01% will be
financed by loan or other outsourcing.

 Utilization of Fund
Firm has targeted to utilize the fund on purchase of Cows & Buffalo and
make over of the Dairy Farm. More than 60 % of the proposed loan will be
utilized in purchase of foods for cow & Buffalo and payment of creditors
thereafter. Remaining 40% is proposed to be utilized in purchase of assets and
office equipment.

 Financial Targets
Yearly projected sales target of the firm

Particular 2078-79 2079-80 2080-81 2081-82 2082-83

Sales
3,200,000 4,800,000 6,720,000 8,736,000 11,356,800
Cost of
Sales 1,953,600 2,942,400 4,060,800 5,201,280 6,761,664
Gross
Margin 1,246,400 1,857,600 2,659,200 3,534,720 4,595,136
  Annual Operating Cost of the Firm
Particular
2078-79 2079-80 2080-81 2081-82 2082-83

Audit Fee 50,00 50,000 50,00 50,00

20,000.00 0.00 .00 0.00 0.00
Cleaning 96,00 134,400 174,72 227,13
Expenses 64,000.00 0.00 .00 0.00 6.00
Treatment and 240,00 336,000 436,80 567,84
vaccination 128,000.0 0.00 .00 0.00 0.00
0
Registration & 15,00 15,000 15,00 15,00
renewal expenses 15,000.00 0.00 .00 0.00 0.00
288,00 403,200 524,16 681,40
Fuel Expenses 192,000.0 0.00 .00 0.00 8.00
0
Repair & 40,00 40,000 40,00 40,00
Maintenance 20,000.00 0.00 .00 0.00 0.00
Electricity 96,00 134,400 174,72 227,13
expenses 64,000.00 0.00 .00 0.006.00
384,00 537,600 873,60 1,135,68
Water Expenses 256,000.0 0.00 .00 0.00 0.00
0
Total 1,209,00 1,650,600 2,289,00 2,944,20
759,000.0 0.00 .00 0.00 0.00
0
 2078-79 2079-80 2080-81 2081-82 2082-83

Audit Fee Cleaning Expenses Treatment and vaccination

Registeration & renewal expenses Fuel Expenses Repair & Maintennace
Electricity expenses Water Expenses

 Details of Sales, Purchase and Stock in next Year

Particul
ar 2078-79 2079-80 2080-81 2081-82 2082-83

Sales
3,200,000 4,800,000 6,720,000 8,736,000 11,356,800

Purcha 1
se ,248,000.0 1,920,0 2,688,00 3,494,40 4,542,72
0 00.00 0.00 0.00 0.00
Sale,Purchase & Stock
Stock 96,00 134,40 174,72 227,13
62,400.00 0.00 0.00 0.00 6.00

Sales Purchase Stock

 Ratio Analysis
S.N Ratio Analysis year 1 year 2 year 3 Year 4 year 5
         
1 Current Ratio 1.52 1.59 1.83 2.12 2.49
         
           
2 Quick Ratio 1.52 1.59 1.83 2.12 2.49
           
         
2 Debt Equity Ratio - - - - -
         
         
3 Net Profit Margin 7.8% 9.2% 9.9% 10.1% 10.1%
         
         
Gross Profit
4
Margin 38.7% 39.6% 40.5% 40.5% 40.5%
         
         
8% 11% 15% 17% 19%
5 Rate of Return
         
         
         
6 Return on Equity 14.3% 19.1% 23.4% 25.6% 26.9%
         
         
- - - - -
7 Debt Assets Ratio
         
         
         
124.83 206.11 289.74 380.73 497.39
8 Earning per share          

 Diagram showing next 5-year projected profit

 1 2 3 4 5

5 Year Projected Profit

  SWOT Analysis:
Nowadays, the feasibility studies on development of financial sectors using
analytical models have become more and more common than ever. This article
aims to assess the potentials of industry in line with sustainable development
using the SWOT model which is based on four concepts of Strengths (S),
Weaknesses (W), Opportunities (O), and Threats (T). The SWOT analysis helps
organizations assess issues within and outside the organization. The SWOT
analysis, made up of an assessment of strengths, weaknesses, external
opportunities and threats from competition, provides an outline for strategic
decision-making.

Purpose:
According to this, one of the main strategic models for firms, in profitable and
non-profit or state firms, is the Harvard model. In this model, two types of factors
(internal and external) that affect the firms would be considered. Internal factors
include Strengths (S) and Weaknesses (W) which consist of practical processes
and management decisions which seem to be directly under the control of the
firm’s manager. Strength and weakness points are determined by comparing the
performance over past and present or by comparing the present performance
with average performance. External factors include opportunities (O) and Threats
(T) that affect the firm from outside and the manager has not much control over
them and cannot manipulate them. Up to now, there has not been enough
reports on application of SWOT model in firms but other countries have already
made wide use of this model in firms.

Small businesses, large corporations and individuals can utilize the SWOT
analysis process for evaluation. By adding a SWOT analysis in their business
plans, small businesses can better clarify their short- and long-range strategies.
The SWOT analysis, often found in marketing plans, becomes a useful tool for
planning and competitive analysis. Organizations often provide a SWOT analysis
in a chart format with each segment represented in a different quadrant.
A Strengths

The purpose of these strategies is to maximize the opportunities by making

perfect use of strengths. For instance, making good use of system’s
capabilities and increasing the market share.

S1- whole year trading

S2- participation of family members in business
S3- placement of business in business hub
S4- strong relation in surrounding areas

B Opportunities

O1- being close to the border

O2- Increasing population of Rupandehi
O3- changing business-oriented policies

C Weaknesses (W)

W1- lack of specialist sales man

W2- lack of range of items
W3- lack of proper accounting

D Threats (T)

T1- local level competition

T2- local level taxes and policies
T3- fluctuations and increase of costs
T4- decentralization of business in local areas