Submitted To:Submitted By:
Mr. Shree Ranjan WastiPrakriti Shrestha
Entrepreneurship & New Business FormationBBIS (2002-2006) Kathmandu College of Management
We would like to thank our instructor, Mr. Shree Ranjan Wasti, for his guidance in preparing this business plan.
Not to forget, we are also grateful to our librarian for providing us with the resources needed in completing this project. His assistance has been very much helpful.
Our daily schedule nowadays has become very hectic. As a form of savoir, people go for recreational activities such as movies, picnics, fishing, yoga, parties and the like. Keeping this increasing trend in mind, we have decided to provide people with the facility of a multiple cinema theatre complex – a multiplex.
The project that we are taking upon is a long-term project with the estimated completion time of about 16 months. So, we assume the profitability to increase after this time period. Our multiplex will hold two theatres, allowing us to show two movies at the same time. Besides this, the multiplex will also provide the facilities of parking, restaurant etc. The location of the multiplex is also very accessible i.e. in Tinkune.
On the basis of calculation, we have found that the total project cost is Rs. 25,840,272. To accumulate this amount, we have decided to take a loan of about Rs. 20 million (Rs. 20,100,000 to be exact) and the remaining will be our input. This loan will be repaid over a period of years.
Although our unit selling price (without markup) comes around Rs. 59.07, we have decided to charge Rs. 75 for Regular class and Rs. 100 for Luxury class tickets. This is because we have based our pricing on our competitors’ ticket price.
Our business is a very profitable one which can be seen from our 5-year BEP and ROI analysis. The break-even sales volume is decreasing each year, which is a very good sign for the company. Also, the NPAT is increasing each year, as a result of which our ROI and ROE are both increasing year-by-year. Our ROI (%) for the five consecutive years are 36.92, 56.45, 65.84, 70.26 and 77.15 percent. Also, our ROE (%) for the five consecutive years are 73.43, 87.62, 92.83, 94.97, 96.14 percent.
Our customers will have a very good time watching movies in our theatres. Also, they can enjoy the delicious food at our restaurant or buy food items at a competitive price from our food stalls. Moreover, the superior quality of service that we provide will also drive our competitors to match their quality with ours. This will ultimately benefit the customers as they will be enjoying superior quality services at all theatres.
Our project will also give employment to nearly 24 employees. So, from society point of view too, our project is feasible.
TABLE OF CONTENTS
1. Executive Summary
2. Marketing Plan:
Description of the Product
Comparison of the product with its competitors
3. Production/Service Plan:
Production / Service Process
Fixed Asset Requirement
Life of Fixed Assets
Repairs and Maintenance
Sources of Machinery & Equipment
Terms & conditions of Purchase of Machinery & Equipment
Factory Location and Layout
Number of Laborers
Cost of Labor
Factory/Operational Overhead Expenses
Production/Operations Cost per unit
4. Organization Plan :
Form of Business
Business Experience and Qualification of the Entrepreneur
5. Financial Plan:...