8/26/2020

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Soap and detergent C.

Project proposal

FAAM SOAP AND DETERGENT COMPANY

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 Confidentiality Agreement

The undersigned reader acknowledges that any information provided by _________________________

in this business plan, other than information that is in the public domain, is confidential in nature, and that
any disclosure or use of same by the reader may cause serious harm or damage to
________________________. Therefore, the undersigned agrees not to disclose it without express written
permission from ________________________________.

Upon request, the undersigned reader will immediately return this document to
___________________________.

___________________
Signature

___________________
Name

___________________
Date

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 Table of Contents
Confidentiality Agreement........................................................................................................................................i
1 List of table......................................................................................................................................................iv
2 Executive summary..........................................................................................................................................1
3 Company Description.......................................................................................................................................2
3.1 Company mission statement......................................................................................................................2
3.2 Company philosophy and vision................................................................................................................2
3.3 Company goals..........................................................................................................................................2
3.4 Our Products Offering...............................................................................................................................2
3.5 Legal structure..........................................................................................................................................3
4 Marketing Plan.................................................................................................................................................4
4.1 Market research........................................................................................................................................4
4.2 Barriers to entry........................................................................................................................................4
4.3 SWOT Analysis..........................................................................................................................................4
4.3.1 Strength:................................................................................................................................................4
4.3.2 Weakness:.............................................................................................................................................5
4.3.3 Opportunities:.......................................................................................................................................5
4.3.4 Threat:...................................................................................................................................................5
4.4 Target customer.........................................................................................................................................5
4.5 Key competitors.........................................................................................................................................5
4.6 Marketing Strategy and Sales Strategy......................................................................................................6
4.7 Publicity and Advertising Strategy............................................................................................................6
4.8 Pricing strategy.........................................................................................................................................7
4.9 Distribution channels................................................................................................................................8
5 Operational Plan..............................................................................................................................................9
5.1 Production.................................................................................................................................................9
5.2 Quality control..........................................................................................................................................9
5.3 Personnel..................................................................................................................................................9
6 Management & Organization........................................................................................................................11
6.1 Roles and responsibilities........................................................................................................................11
6.1.1 Chief Executive Officer – CEO (Owner):...............................................................................................11
6.1.2 Plant Manager.....................................................................................................................................12
6.1.3 Human Resources and Admin Manager..............................................................................................12
6.1.4 Merchandize Manager........................................................................................................................12
6.1.5 Sales and Marketing Manager.............................................................................................................12
6.1.6 Accountant/Cashier.............................................................................................................................13
6.1.7 Client Service Executive.......................................................................................................................13
Production........................................................................................................................................................13
6.1.8 Distribution Truck Drivers....................................................................................................................13
6.2 Organization Chart.................................................................................................................................14
7 Startup Expenses & Capitalization...............................................................................................................15
7.1 Start-Up Expenses...................................................................................................................................15
8 Financial plan.................................................................................................................................................17
8.1 12 months sales forecast..........................................................................................................................17
8.2 12 months profit and loss projection.......................................................................................................18
8.3 12 months Cash flow plan.......................................................................................................................19

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4
1 List of table

Table 1 Man pawer requirement for start up.............................................................................................................10

Table 2 Startup Expenses..........................................................................................................................................16
Table 3 12 months sales forecast..............................................................................................................................17
Table 4 12 months profit and loss projection............................................................................................................18
Table 5 12 months cash flow plan.............................................................................................................................19

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2 Executive summary

FAAM Soap & Detergent Production Company is a licensed company that will be located in Chiro town.
FAAM Soap & Detergent Production Company is in the industry to produce soaps and detergents. We are
also in business to make profit and at the same to give our customers value for their money.

We are aware that there are several soap and detergent production companies scattered all around the
Ethiopia, which is why we spent time and resources to conduct our feasibility studies and market survey.
We have mapped out plans to develop a far-reaching distribution network for wholesalers of soap and
detergent products all around Chiro and throughout the Harargahe. We want to build a business that will
be listed amongst the top 10 brands in Ethiopia

Beyond producing quality liquid soaps and detergents, our customer, whom are wholesale distributers,
Hospitals, Hotels, Universities, carwashes etc., care is going to be second to none. We know that our
customers are the reason why we are in business which is why we will go the extra mile to get them
satisfied when they purchase our products.

FAAM Soap & Detergent Production Company have a plan on advertising its products by using cool and
powerful advertisement strategies. We will ensure that all our customers (wholesale distributors) are given
first class treatment whenever they visit our factory.

FAAM Soap & Detergent Production Company will be owned by a group of individuals (Feti
Mohammed, Abdulkudus, Abdi Ahmed Haji and Mohammed Ibrahim) who have experience and also
enough education on the production of soap and detergent.

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3 Company Description

3.1 Company mission statement

 Our mission is to establish a world class liquid soap and detergent production brand that will
favorably compete with leaders in the industry

3.2 Company philosophy and vision

 Our vision is to establish a standard liquid soap and detergent production Company whose
products will be not only be sold in city of chiro, but also throughout Harargahe and Oromia.
 We want to build a business that will be listed amongst the top 10 brands in Ethiopia.
 We want this company to become one of the biggest soaps and detergent company in the country,
obviously the fist in Harargahe, and to have many branches in different regions of the country.

3.3 Company goals

 To control the market in the chiro town by competing with other products which are imported from other
regions
 To introduce our products to some cities in Oromia region by signing contracts with a certain number of
clients whom have an influence in the new market.
 To settle in the market and build an industry
 Introduce new products to the market in 2018 E.C.
 To open our first branch in another region in 2024 E.C

3.4 Our Products Offering

FAAM Soap & Detergent Production Company is going to run a standard soap and detergent production
company whose products will not only be sold in the Chiro town but also throughout the Oromia region.
We are in the industry to make profits and also to give our customers value for their money. These are
some of the products that we will be offering
 Odabultum liquid detergent
 Odabultum bar detergent
 Odabultum laundry bar soap
 Odabultum beauty soap

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We will formulate specific properties of those products based on the feedbacks that have been given by
customers on other products. For instance, they complain high price, less quality

3.5 Legal structure

FAAM Soap & Detergent Production Company will be owned by a group of individuals led by
Ms. Abdulkudus. Mr. Feti Mohammed, whom have studied Chemical Engineering and Abdi
Ahmed and Mohammod Ibrahim who have studied Accounting and Farmacy, respectively.

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4 Marketing Plan

4.1 Market research

Making a market research is a very crucial thing to do if you want to start a new business unless you want to
venturing out, yet that is a very bad thing to do in business. we made this research by walking around town and
asking wholesale distributers, retailers and final consumers about their unhappiness about the quality, cost, and
delivery system that other competitors provides. we got a lot of data’s from making the research. This includes that
we happened to know our target market, the market trend, our competitors, the demand for the products etc.

4.2 Barriers to entry

Our start up faces the following barriers to entry;
 High startup costs
 Brand recognition challenges
We tried to overcome the high startup cost by finding mins of finance like loan from the government
And the brand recognition challenges by using different Publicity and Advertising Strategy. we will explain
these later in detail.

4.3 SWOT Analysis

There are several liquid soap and detergent manufacturing companies in Ethiopia, who have settled in the
market, which is why we are following the due process of establishing a business so as to compete
favorable with them. We know that if a proper SWOT analysis is conducted for our business, we will
position our business to maximize our strength, leverage on the opportunities that will be available to us,
mitigate our risks and be equipped to confront our threats.

This is the summary of the SWOT analysis that was conducted for FAAM Soap & Detergent Production
Company;

4.3.1 Strength:
Part of what is going to count as positives for FAAM Soap & Detergent Production Company is the
experience of our chemical engineers, having people on board who are accountants and pharmacists, and
having a knowledge on how to grow a business.
So also, our closeness to large distributers, to the whole community and of course having a long-term plan
will definitely count as a strong strength for the business.

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4.3.2 Weakness:
A major weakness that may count against us is the fact that we are a new soap and detergent production
company and we don’t have the financial capacity to engage in the kind of publicity that we intend giving
the business especially when big names like Repi soap and detergent s.c & Bekas chemicals are already
determining the direction of the market.

4.3.3 Opportunities:
The opportunities available to liquid soap and detergent products manufacturing companies are enormous
because almost all Ethiopians make use of soap and detergent regularly when washing. That is called non-
stop demand. Beside nonexistent of other production companies in the same location with ours. As a
result of that, we to position our business to take advantage of the existing market to create our own new
market. We know that it is going to requires hard work, and we are determined to achieve it.

4.3.4 Threat:
One of the major threats that we are likely going to face is political instability and chaos, economic
downturn and unfavorable government policies. Another threat that may likely confront us is the arrival of
a new production company in same location where ours is located.

4.4 Target customer

When it comes to selling soap and detergent, there is indeed a wide range of available customers. We are
in business to engage in wholesale distribution and to retail our soap and detergent to the following
groups of people;
 Wholesale distributers
 Hotels
 Hospitals
 Laundries and carwashes
 Everybody in our target market location

4.5 Key competitors

A quick of the industry reveals that the market has become much more intensely competitive over the last
decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must
survive in this industry, but fortunately, there is no a single company that produce soap and detergent in
the whole Harargay.

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So, we only have to deal with agents that took contracts from soap and detergent company to distribute
their products. We are aware of the competition and we are prepared to compete favorably with other soap
and detergent production companies.

4.6 Marketing Strategy and Sales Strategy

Before choosing the kind of liquid soap and detergent products to produce, we conducted a thorough
market survey and feasibility studies in order for us to penetrate the available market in our target market
location. We have detailed information and data that we were able to utilize to structure our business to
attract the number of customers we want and also for our products to favorable compete with other
leading brands in Ethiopia.

We have Chemical Engineers who have good understanding of the soap and synthetic detergents
production industry and also who have spent their internship program in one of the biggest soap and
detergent company(Repi soap and detergent S.C) in the board who can formulate awesome quality
product and develop marketing strategies that will help us win a larger percentage of the available market
in Chiro and other cities in Oromia region.

In summary, FAAM Soap & Detergent Production Company will adopt the following sales and marketing
approach to sell our liquid soap and detergent products;

 Introduce our liquid soap and detergent brand by sending introductory letters to residents,
merchants, and retailers in Chiro and other towns in Harargay.
 Engage in roadshows in targeted communities from time to time to sell our products
 Leverage on the internet to promote our liquid soap and detergent brand
 Engage in direct marketing and sales

4.7 Publicity and Advertising Strategy

FAAM Soap & Detergent Production Company has a long-term plan of distributing our liquid soap and
detergent in various locations all around the Harargahe which is why we will deliberately build our brand
to be well accepted first in chiro before venturing out.
Here are the platforms we intend leveraging on to promote and advertise FAAM Soap & Detergent
Production Company;
 Sponsor relevant community programs

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  Leverage on the internet and social media platforms like; Facebook, Telegram, et al to promote
our soap and detergent brand
 Install our billboards in strategic locations all around major cities in the Ethiopia.
 Engage in roadshows from time to time in targeted communities
 Distribute our fliers or handbills in target areas
 Position our Banners at strategic positions in the location where we intend getting customers to
start patronizing our products.
 Ensure that our products are well branded and that all our staff members wear our customized
clothes, and all our official cars and distribution vans are customized.

4.8 Pricing strategy

We are aware of the pricing trend in the liquid soap and detergent production industry which is why we
have decided to produce various sizes of liquid soap and detergent. Our prices will conform to what is
obtainable in the industry but we will ensure that within the first 6 to 12 months our products are sold a
little bit below the average price. We have put in place business strategies that will help us run on low
profits for a period of 6 months; it is a way of encouraging people to buy into our brand.

Payment Options

The payment policy adopted by FAAM Soap & Detergent Production Company is all inclusive because
we are quite aware that different customers prefer different payment options as it suits them but at the
same time, we will ensure that we abide by the financial rules and regulation of Ethiopia.

Here are the payment options that FAAM Soap & Detergent Production Company will make available to
its clients;

 Payment via bank transfer

 Payment with cash
 Payment via online bank transfer
 Payment via check
 Payment via mobile money transfer

In view of the above, we have chosen banking platforms that will enable our clients make payment
without any stress on their part.

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4.9 Distribution channels
We are intended on distributing our products using all methods of distribution so that our product reaches the
desired customer. These may include:
 Retail
 Direct sales
 Ecommerce
 Wholesale

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5 Operational Plan

5.1 Production
This is the most crucial part of the business to pay attention to. Because, it where the row materials are transformed
to products. The quality of raw materials and the efficiency of the production process determines the quality of
product.
So, we deliberately designed a production plant and chose raw materials since we know good quality products are
keys to attract customers and patronize them.

5.2 Quality control

In order our products to be competitive in the market, the quality of the final products plays very
important role. We will have a quality control room where we can check the quality of the raw
materials, products at the middle and the end of the production process. The quantities and
parameters which will be checked during the quality control and packaging processes are the
followings.
Liquid detergent Bar detergent Soap products
 The pH  Moisture content  Free caustic soda
 The viscosity  PH  AIM
 Foaming  Foaming  TFM

5.3 Personnel
We are intending on hiring employees both with licensing and without licensing. Before hiring then first we will
give them an introduction about safety rules and production process and training on how to operate on machineries.
For the production of soap and Detergent at the startup, the following category of manpower will be required for
day to day production.

Required personnel
Designation of employee
1 Operators --
2 Labors 3
3 Plant manager 1
4 Supervisor 1
5 Accountant 1
6 Seles man 1
7 Purchase officer --
8 Secretary --
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9 Distribution Truck Driver --
Total 7

Table 1 Man pawer requirement for start up

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6 Management & Organization

FAAM Soap & Detergent Production Company is established to compete with other leading liquid soap
and detergent product brands in the industry. This is why we will put the right structure in place that will
support the kind of growth that we have in mind for the business.

We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are
ready to work to help us build a prosperous business that will benefit all the stake holders. Profit-sharing
arrangement will be made available to all our senior management staff depending how fast we meet our
set target.

In view of that, we have decided to hire qualified hands to occupy the following positions;

• Chief Executive Officer (Owner)

• Plant Manager
• Human Resources and Admin Manager
• Merchandize Manager
• Sales and Marketing Manager
• Machine Operators
• Accountants / Cashiers
• Distribution Truck Drivers

6.1 Roles and responsibilities

6.1.1 Chief Executive Officer – CEO (Owner):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching,
counseling, and disciplining managers; communicating values, strategies, and objectives;
assigning accountabilities; planning, monitoring, and appraising job results and developing
incentives
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction –
i.e. leading the development and implementation of the overall organization’s strategy
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization.
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6.1.2 Plant Manager
• Responsible for overseeing the smooth running of the production plant
• Maps out strategy that will lead to efficiency amongst workers in the plant
• Responsible for training, evaluation and assessment of plant workers
• Ensures operation of equipment by completing preventive maintenance requirements; calling for
repairs.
• Ensures the steady flow of raw chemicals to the plant and easy flow of finished products through
wholesale distributors to the market
• Ensures that the plant meets the expected safety and health standards at all times.

6.1.3 Human Resources and Admin Manager

Responsible for overseeing the smooth running of HR and administrative tasks for the
organization
Defines job positions for recruitment and managing interviewing process
Carries out induction for new team members
Responsible for training, evaluation and assessment of employees
• Oversees the smooth running of the daily office and factory activities.

6.1.4 Merchandize Manager

• Manages vendor relations, market visits, and the ongoing education and development of the
organizations’ buying teams
• Responsible for the purchase of chemicals and packaging materials
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and
pricing orders to vendors

6.1.5 Sales and Marketing Manager

• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate
with clients
• Develops, executes and evaluates new plans for expanding sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company

6.1.6 Accountant/Cashier
• Responsible for preparing financial reports, budgets, and financial statements for the organization
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 • Provides managements with financial analyses, development budgets, and accounting reports
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

6.1.7 Client Service Executive

• Welcomes guests and clients by greeting them in person or on the telephone; answering or
directing inquiries.
• Ensures that all contacts with clients (e-mail, SMS or phone) provides the client with a
personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in
the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Receives documents for the company
• Distributes mails in the organization

Production Workers/Machine Operators:

• Operates the chemical mixer, vessels, crystalizing machines, burner and conveyor belt system et
al.
• Assists in packaging and loading liquid soap and detergent products into distribution trucks

6.1.8 Distribution Truck Drivers

• Assists in loading and unloading liquid soap and detergent products
• Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment
• Assists the transport and logistics manager in planning their route according to a delivery
schedule.
• Local-delivery drivers may be required to sell products or services to stores and businesses on
their route
• Inspects vehicles for mechanical and safety issues and perform preventative maintenance
• Collects and verifies delivery instructions
• Reports defects, accidents or violations
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6.2 Organization Chart

Chief Executive
officer

Secretary

Finance and HR
Department Commercial
deoartment Deputy
Department
General Manager
Accountant

Production and Property and

Merchandize
technical department store section
HR and Admin Manager
Manager
Plant
Technical
manager Sales and
division
marketing
Soap PP Mechanical Manager
maintenance
Detergent
PP Electrical
maintenance

Figure 1 Organization chart

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7 Startup Expenses & Capitalization

7.1 Start-Up Expenses

Starting a standard liquid soap and detergent production company is indeed capital intensive because the
amount required here is quite huge. The bulk of the startup capital will be spent on acquiring a facility and
also in purchasing chemical mixer, vessels, a mini lab and good drainage system.

These are the key areas where we will spend our startup capital;

Categories Quantity Cost Total cost

Production site
Rent 6 months 3,000 18,000
Remodeling 10,000 10,000
Capital equipment list
Mixer 1 1 110,000 110,000
Mixer 2 1 8,000 8,000
Machineries for 3 100,000
bar
Packer 1 2,000 2,000
Heat gun 1 2,000 2,000
Lab apparatus 20,000 20,000
Electricity 60,000 60,000
installation
Desktop 1 5,000 5,000
Printer 1 8,000 8,000
Furnitures
Table 1 1,500 1,500
Shelf 1 1,000 1,000
Chairs 2 300 600
Safety nets
PPEs 2,000 2,000
Fire extinguisher 300 300
First aid box 300 300
Utility deposits
Water 3 months 1,000 3,000
Electricity 3 months 3,000 9,000
Telephone 3 months 500 1,500
Wi-Fi 3 months 900 2,700
Advertisement
Sponsorship 5,000 5,000
Poster 1000 10 10,000
Leaflet 50 7 350
Printing 50 150 7,500
T-shirt 100 100 10,000
Transportations
Raw materials 5,000 5,000
Product deliveries 1 month 15,000 15,000

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 Raw materials 1 month 45,000 45,000
Total 461,000
Table 2 Startup Expenses

Opening a new business almost always ends up costing more than expected. Therefore, we need to be
prepared for contingencies. a good rule of thumb is to set aside 10% to 5% of total startup costs for
contingencies. By taking 10% it would be 46,100 ETB.
So, we would need an estimate of 507,100(~500,000) ETB to successfully set up our soap and detergent
production plant in Chiro.

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 8 Financial plan
8.1 12 months sales forecast

Annual
  Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Totals
wholesale
distributers
1(unit sold) 1815 2541 2541 2541 2541 2541 2541 2541 2541 2541 2541 2541 29766
Sale price
@ unit 19.00 19.00 19.00 19.00 19.00 19.00 21.00 21.00 21.00 21.00 21.00 21.00  
WSD1
TOTAL 34,485 48,279 48,279 48,279 48,279 48,279 53,361 53,361 53,361 53,361 53,361 53,361 596,046
   
wholesale
distributes
2   1815 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 31815
Sale price
@ unit   20.00 20.00 20.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00  
WSD2
TOTAL 0 36,300 60,000 60,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 684,300
   
wholesale
distributers
3   1815 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 31815
Sale price
@ unit   20.00 20.00 20.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00  
WSD3 0 36,300 60,000 60,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 684,300
   
wholesale
distributers
4   1815 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 31815
Sale price
@ unit   20.00 20.00 20.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00  
WSD4 0 36,300 60,000 60,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 684,300
   
Wholesale
distributers
5   1815 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 31815
Sale price
@ unit   20.00 20.00 20.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00  
WSD5 0 36,300 60,000 60,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 684,300
   
Monthly
totals: All 193,47 288,27Table 3
288,27 12312,27
months sales forecast
317,36 317,36 317,36 317,36 317,36 317,36
Categories 34,485 9 9 9 9 312,279 1 1 1 1 1 1 3333246

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 8.2 12 months profit and loss projection

Oct- Nov- Dec- Feb- Mar- May- Jun- Aug- Sep-

20 20 20 Jan-21 21 21 Apr-21 21 21 Jul-21 21 21 YEARLY
Revenue
(Sales)                          
W,distributer 1 34,485 48,279 48,279 48,279 48,279 48,279 53,361 53,361 53,361 53,361 53,361 53,361 596,046
W,distributer 2   36,300 60,000 60,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 684,300
W,distributer 3   36,300 60,000 60,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 684,300
W,distributer 4   36,300 60,000 60,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 684,300
W,distributer 5   36,300 60,000 60,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 684,300

Total Revenue
(Sales) 34,485 193,479 288,279 288,279 312,279 312,279 317,361 317,361 317,361 317,361 317,361 317,361 3,333,246
                           
Cost of Sales                          
W,distributer 1 27,225 38,115 38,115 38,115 38,115 38,115 38,115 38,115 38,115 38,115 38,115 38,115 446,490
W,distributer 2   27,225 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 477,225
W,distributer 3   27,225 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 477,225
W,distributer 4   27,225 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 477,225
W,distributer 5   27,225 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 477,225
Total Cost of
Sales 27,225 147,015 218,115 218,115 218,115 218,115 218,115 218,115 218,115 218,115 218,115 218,115 2,355,390
                           
Gross Profit 7,260 46,464 70,164 70,164 94,164 94,164 99,246 99,246 99,246 99,246 99,246 99,246 977,856

                           
Expenses                          
Salary expenses    3000  3000  3000  3000  3000  3000  3000  3000  3000  3000   0

Repairs and
maintenance 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000
Advertising 26,850 2,000 2,000 2,000 2,000 2,000 26,850 2,000 2,000 2,000 2,000 2,000 73,700

Car, delivery and

travel 9,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 174,000
Rent & Related
Costs                         0
Telephone                         0
Utilities 1,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 45,000
Sub-total
Expenses 38,850 23,000 23,000 23,000 23,000 23,000 47,850 23,000 23,000 23,000 23,000 23,000 316,700

Reserve for
Contingencies 3885 2300 2,300 2300 2300 2300 4785 2300 2300 2300 2300 2300 31,670
Total Expenses 42,735 25,300 25,300 25,300 25,300 25,300 52,635 25,300 25,300 25,300 25,300 25,300 348,370
                           

Net Profit Before -

Taxes 35,475 21,164 44,864 44,864 68,864 68,864 46,611 73,946 73,946 73,946 73,946 73,946 629,486

Federal Income
Taxes                          
Local Income
Taxes                          

Net Operating -
Income 35,475 21,164 44,864 44,864 68,864 68,864 46,611 73,946 73,946 73,946 73,946 73,946 629,486

Table 4 12 months profit and loss

projection

23
 8.3 12 months Cash flow plan
Pre- Total
Startup Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Item
EST EST
Cash on Hand
(beginning of 500,000 150,225 18,073 6,689 8,152 51,316 112,480 154,794 225,770 298,016 370,262 442,508 514,754 150,225
month)
                             
CASH
                           
RECEIPTS
Cash Sales   25,863 153,731 246,578 288,279 306,279 312,279 316,091 317,361 317,361 317,361 317,361 396,701  

Loan/ other cash

    80,000                      
inj.
TOTAL CASH
0 25,863 233,731 246,578 288,279 306,279 312,279 316,091 317,361 317,361 317,361 317,361 396,701 0
RECEIPTS
Total Cash
Available (before 500,000 176,088 251,804 253,267 296,431 357,595 424,759 470,885 543,131 615,377 687,623 759,869 911,455 150,225
cash out)
                             
CASH PAID
                           
OUT
Purchases
27,225 147,015 218,115 218,115 218,115 218,115 218,115 218,115 218,115 218,115 218,115 218,115    
(merchandise)
Purchases
202,000                          
(machineries)
Purchases (lab
apparatus and 22,600                          
PPEs)
Gross wages (exact
    3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000  
withdrawal)
Repairs &
  1,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000  
maintenance

Advertising 24,850   2,000 2,000 2,000 2,000 26,850 2,000 2,000 2,000 2,000 2,000    

Car, delivery &

5,000 9,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 10,000  
travel

Rent                            

Telephone                            

Utilities   1,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000  

Oth.exp(elec.,water
68,100                          
)

SUBTOTAL 349,775 158,015 245,115 245,115 245,115 245,115 269,965 245,115 245,115 245,115 245,115 245,115 20,000 0

Owners' Withdrawal                            

TOTAL CASH
349,775 158,015 245,115 245,115 245,115 245,115 269,965 245,115 245,115 245,115 245,115 245,115 20,000 0
PAID OUT
Cash Position (end
150,225 18,073 6,689 8,152 51,316 112,480 154,794 225,770 298,016 370,262 442,508 514,754 891,455 150,225
of month)

Table 5 12 months cash flow plan

24