final-mangment.doc

8/18/2019 final-mangment.doc

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FINAL PROJECT

Catalonian Bicycles


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Table of Contents

Executive summery 3-8Introduction of company 3-5

The mission of the company 5

The proposed objectives 5-

! brief description of the products

The people behind the business

"ey of success

! profit forecast #

!n estimate of the funds necessary 8

! $ell-phrased re%uest for fundin& 8

Company 'escription (-)*

+$nership (

Company history , startup plan (-)*

ocation detail )*

.roduct and /ervices )3-)8

Brief description of products services )3-)

Competitiveness on the mar0et )5

Technolo&y )-)#

.rospect for ne$ future product )8


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1ar0et !nalysis Components )8-*)

1ar0et demand )8-)(

1ar0et si2e needs trends *4

1ar0et &ro$th *4

'emo&raphics *)

Culture *)

Barriers to entry *)

1ar0etin& /trate&y .ricin& .romotion 'istribution **-*6

1ana&ement Team *6-*

.resentation *6

.ersonnel .lan *5

Expansion .lan *5-*

7inancial !nalysis *-3)

Brea0-even analysis *-*(

Cash flo$ forecast 34-3)

Exit strate&y 3)


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Catalonian Bicycles

Executive summary

IT9+':CTI+

Catalonian Bicycles is an established Bicycle specialty company, producing of new Bicycles,

spare parts and accessories and also offering an extensive range of baby items and toys. While

some of our additional and featured products are baby prams, baby walkers, tricycles and also

providing some exercise machines.

The primary market for Catalonian Bicycles are the students of town and as there no is

increasing so as the demand for Bicycles and its spare parts and accessories is increasing, and

the normal turnover!growth of students is approximately 25" each year. The secondary Target

market consists of laborers who need Bicycles for the completion of their daily work and also the

poor people who cant afford to buy #otor Bicycles and $ars for using in daily routine and the

tertiary market is the greater %awalpindi and &slamabad $ommunity.


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'hmed #unir has been the assistant manager of Catalonian Bicycles for Three years, with an

additional seven years of Bicycle industry retail sales and service experience. 'hmed first began

investigating the ownership of a bike business (our years ago, however, the local %awalpindi

market seemed saturated with company. %eali)ing that a more practical option would be to buy

an Existin& ori&ination, 'hmed #unir approached his current boss. The result of two years of

negotiations will be the sale of $atalonian Bicycle company to 'hmed #unir taking effect on

*an +, 2-. The goal will be a seamless transfer of ownership, with staff, bike lines, location,

and operations unchanged.

This Business lan has been prepared to be presented to !7!!; B!" td and to the

suppliers of new Bicycles, accessories and spare parts etc. ' substantial part of the past years

planning has been negotiations with these suppliers to maintain the current financial agreements

as the business has changed its owner. These negotiations benefited greatly by the good working

relationships 'hmed #unir had developed with the various suppliers/ sales representatives, who

advocated on 'hmed/s behalf. The suppliers have provisionally granted continuation of existing

terms and dating programs, pending review of this business plan. 0ames, proprietary

information, and some financials have been disguised in this sample plan.

' graph representing the highlights of the previous 1 years and all the results that were resulting

from it,


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9 'im to improve production 6 sales of Bicycle and baby items as it yields greater profitwith less investment.

Brief 'escription of the .roduct

Bicycles. We produce 6 sell new bicycles, predominantly in the mountain bike style andsport!touring!racing road bikes a distant third. We also sell some used bikes which we take in ontrade as a service to our customers who are buying new bikes.

!ccessories. We offer a wide variety of accessories. :ocks, computer speedometers,fenders, cargo racks, comfortable seats, headlights, helmets, water bottles, panniers!back packs!messenger bags, child seats and trailers, bike storage racks, and auto roof rack systems all

fall in this category. 'nd also we sell toys and bicycle spare parts.

.eople behind the business

• 'hmed #unir.

• ;ia ur rehman.

• 0a3eebullah.

• 7yed ;ahid hussain.

"E> T+ /:CCE//


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Buying and continuing to use the recogni)ed, well respected name Catalonian BicycleCompany provides continuity for the customers, the owner, and the employees.

%etaining and promoting the current employees of the shop is as important as any other itemhere. They are the life of Catalonian Bicycle Company. :ong8term relationships with

customers have always been a hallmark of the Catalonian Bicycle $ompany experience. Werecogni)e and address our customers by name, and want to be part of their experience.

! profit 7orecast

The 'verage ercent Aariable $ost and stimated #onthly (ixed $ost figures in the table andchart below are drawn from data in the rofit and :oss and 7ales (orecast tables. The table andchart give us a rough estimate on how much product and service we need to sell each month tocover all our expenses.


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!n estimate of the fund necessary-

The total estimate of $atalonian Bicyle company is +-9,C. 'nd for this our company need loans andfunds.

! ?ell .hrased re%uest for 7undin&-

We are reuesting our family for funding because we have launched a new technology in bicycle that is a

type of machine that should be fit in a back wheel of bicycle through which a bicycle will move

automatically and this type of technology is not introduce by any other company so we are fully sure that

our business will be successfull and will get as much profit as we can.


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Company description

Company /ummary @o$nershipA

Catalonian Bicycles Company was currently owned by 7heikh Wahid. 'hmed #unir,was current assistant manager of $atalonian Bicycle $ompany, and ahmed purchasedCatalonian Bicycle $ompany from Wahid, acuiring existing inventory, and assumingoutstanding accounts payable and dating program debts to suppliers, location lease, customer base and information, and Catalonian Bicycle $ompany/ business name and goodwill. xchangeof ownership will occur on *an +, of 2-.

/tart-up .lan

The current owner was 7heikh Wahid, had sold the business to 'hmed #unir for +9,. To help determine this price, a business valuation specialist was hired. This professional priced existing store fixtures, tools, and stock. These included Bicycle wall racks,display cases, track lighting, repair and assembly tools, supply cabinets and storage shelving,etc., and are part of the purchase price.

The value of the existing company, its reputation, assumption of the business name, existingclient base, etc. is recogni)ed as part of the purchase. &t appears as a start8up expense in the

following table. The balance appears as a long8term liability. 'dditional payments shall be mademonthly.

&nventory, accounts payable, and invoices were tracked for five months to determine an accurate price of current inventory and amounts of accounts payable assumed.

' deposit eual to one month rent was reuired by the landlord as assurance in continuing thecurrent lease to the new owner.

'hmed #unir is investing some of his own money, partially a home euity loan, in the company.'n additional amount is being invested, as short8term interest free loans, by family

members. This plan calls for these loans to be repaid in the first year.


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/tart-up 9e%uirements

7tart8up

%euirements

7tart8up xpenses

:egal +,D

7tationery etc. 25

romotional #aterials 1

$onsultants C

&nsurance 15

>own ayment +,

Total 7tart8up xpenses +1,1

7tart8up 'ssets

$ash %euired -5,

7tart8up &nventory +E,


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lanned &nvestment

0ew


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Brief descriptions of product and services

+ Bicycles. We sell new Bicycles, predominantly in the mountain bike style andsport!touring!racing road bikes a distant third. We also sell some used bikes which we take in ontrade as a service to our customers who are buying new bikes.

2

1 Accessories. We offer a wide variety of accessories. :ocks, computer speedometers,fenders, cargo racks, comfortable seats, headlights, helmets, water bottles, panniers!back packs!messenger bags, child seats and trailers, bike storage racks, and auto roof rack systems allfall in this category. &t is not possible to carry every possible accessory, so we try to carefullychose those which will be most useful or desired by our target markets. When we receive specialreuests for a new item, we/ll often order several to test the local demand, and if adeuate, willadd it to our regular stock.

9 Toys We are also offering a complete range of different baby products such as baby prams, baby tricycles, charge8able tricycles and cars and a lot more products.


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5 .arts. arts generally refer to pieces or materials necessary to the basic functioning of the Bicycle. Ienerally, parts are installed during service Jsee belowK and are an additional charge beyond the service fees. 7ome, like crank sets, pedals, tires, derailleurs or brakes, are bothintegral parts and upgrade accessories.


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• (ree &nstallation of all accessories.

• 'uthori)ed warranty repairs on the bikes.

• $ustom wheel allayment.

1ain Competitors

$atalonian bicycles company has following competitors

• B#M.

• hillips.

• $hicago.

• $hinese hoenix Bicycle.

7etting aside the discount department stores, $atalonian Bicycle 7hop has the following directcompetitors.

• &LB': $=$: 7T


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The foremost competitive advantage of $atalonian Bicycle 7hop is our location.


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.rospects for ne$ future products or services-


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By seeing our product at the present time we are still looking to improve it more in order to

please our consumer expectations or needs.


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1. There is a new enthusiasm for $ruiser bikes, and higher tech style bikes with multiplegears, good brakes, etc. among the college age population.

'lso, main market for racks, locks, throughout, pannier!bags, fenders, rainwear, etc.

+ They want convenience for sales and service.

• Employees and abourers are another prime mar0et se&ment.

7mall growth and turnover, but on the whole, the group is pretty stable.

+ 're willing to commute by Bicycle to work.

2 They want a stable, comfortable bike and a full range of accessories.

1 When their bikes need service and maintenance, local drop off!pickup convenience isimportant.

9 They have families who ride Bicycles also, and will patroni)e a shop that gives personalservice.

• reater T$in City population

This segment has a choice of going to any bike shop in Twin $ity, and will probably choose ashop located closer to their home. They are not the main target market segment of $atalonianBicycle 7hop, and we market to them casually, only as a collateral effect to our efforts.

1!9"ET !!>/I/


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Target #arket Irowth =ear + =ear 2 =ear 1 =ear 9 =ear 5 $'I%

7tudents 6$hildren

9" 2E,5 2C,D 2-,E99 1,-19 12,+E+ 9."

mployees +" D,5 D,511 D,5DD D,5-- D,D12 .5"

$ity opulation 2" +D, +D1,2 +DD,9D9 +D-,E-1 +E1,+C- 2."


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introducing our product in akistan in order to help them and satisfy their needs. 't the present

time people are willing to get a best uality product as well as on affordable cost as we have seen

our product it can be used as a bicycle or it can move on its own 3ust like a bike so its like 2 in +

product. 7o the culture over here is that mostly low rank people use bicycle and for them an

automatic moving bicycle would become a precious thing.

Barriers to entry-

&n every new start up business, at the present time the biggest barrier is the inflation because of

inflation the material prices, labor prices and so on are gone so higher that it may take much

more investment than we budgeted about. Because nowadays its hard to be located cause of

higher prices land. 7o that in order to prevent a changement of places and so on to take upon a

competitive at this high cost, it may take time to attract consumers or we may stay in loss for a

long term in attracting them. 't the present time the biggest barrier for opening any type of

bicycle company , china may be the biggest problem because they supply their product all over

akistan in order to compare to other bicycle companies e.g. , B#M , hillips etc. ' government

rules and regulations also affect it by introducing new law or by introducing a tax into it by

importing or exporting parts and so on, through which a business may become harder.

1ar0et /trate&y

&nformation on our sales and marketing efforts are discussed in the following sections.


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.rint advertisin&. We will keep a small 1 column inch ad appearing on a recurring schedule inthe Jang Newspaper . To boost citywide awareness of our sales specials we will also run slightlylarger ads in the #etro burg Bombast-Obfuscator during the weekends prior to the sale.

Bac0 to school specials We are offering free locks and cables and also some attractive horns and

other complimentary goods for free to students.

/prin& special. This coincides with the beginning of spring term, but we will direct some of our advertising at the wider population as people hang up their skis and tune up their bikes.

?ebsite.


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• Brake 'd3ustment 88 25.

• Tune8up 88 +.

•


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$atalonian Bicycle is an organi)ation that produce bicycles and they distributes through their

own shops. $atalonian bicycles have their own outlets like they produce their own bicycles and

sell them in their own shops. $atalonian bicycle sell their outlets to public through their shops.

1ana&ement

1ana&ement

The $< of the $atalonian Bicycle company is #r.'hmed #unir and Aice resident is #r.>3;ia ur rehman and 7ales #anager is #r.'pocho ;ahid @ussain and (inancial #anager is #r. 0a3eeb Bangali and lant #anager is #r. 'li 0agri.

The current assistant manager, of $atalonian Bicycle 7hop is Waseem $hoosne, and will managethe business. Waseem has a BB' degree in #anagement and @is passion however has always

been cycling. @e originally worked at his local bike shop when he was in college. 'fter severalyears trying to find suitable work in his degree field, @ub gave up chasing the chimera of thesefields and decided to work with something substantial, and returned to his youthful en3oyment of Bicycles.

@e attended two of the ma3or Bicycle mechanic training programs. These courses coveredmechanical service and maintenance, frame building and repair, wheel building, and shoporgani)ation, sales, and management. @e has +2 years of progressively responsible experience inBicycle shops with the last five at $atalonian Bicycle 7hop.


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The staff of $atalonian bicycle company is based on three managers Fsales manager, financialmanager and plant managerG, an $< and vice president. There are many employees that areworking under that managerial group.

The staff of shop will consist of Waseem ahmed, the new assistant manager, @ammad shabbir,

and two other full8time employees 'sim, and 'wais.

To meet the need for additional help during the year, $atalonian Bicycle 7hop hires two to four part8time employees. We look for people who are enthusiastic about cycling, and who have amechanical aptitude. 7ome of these folks have worked for us throughout their life. Their hoursvary depending on the stores/ needs and their schedules

.ersonnel .lan

@ub (reewheeler 19,C 1D,59 D,

Ael ee %aylure 21,9 29,5E 25,E--

*ean8Baptiste Napsy)e +-,C 2,E- 2+,C1

art8time mployees +C,- 25,2 25,2

Total eople 5 E E

Total ayroll +21,- +15,95 +D2,C2C

Expansion plan

&f our business run successfully then our expansion plan is that we will open many more new

branches in other cities of akistan so we target following cities in akistan 48

• :ahore.

• #ultan.

• eshawar.

• Narachi.


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7inancial plan

7inancial .lan

This financial plan was developed based upon previous years/ data for the existing store, trackingtrends in revenues and expenses. ' five8month track of sales, accounts receivables and payables,and inventory from a year8end benchmark was made.

The seller, buyer, and the accountant worked together on the plan to balance optimism withreality.

'n attorney was consulted on specifics of the sale contract.

Brea0-even !nalysis

The 'verage ercent Aariable $ost and stimated #onthly (ixed $ost figures in the break8eventable and chart below are drawn from data in the rofit and :oss and 7ales (orecast tables. Thetable and chart give us a rough estimate on how much product and service we need to sell eachmonth to cover all our expenses.


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.rojected .rofit and oss

&n negotiating the smooth transition in ownership, the landlord agreed with Waseem ahmed tocontinue the current lease unchanged. 's surety, one month/s rent was reuired as a deposit at thetime of sale. This is shown in the 7tart8up table. (urther, the landlord agreed that if, after ++months operation the new company was solvent and current in lease payments, that the depositcould be applied to the twelfth month/s rent.

The mid8summer months of *uly and 'ugust are slow months when a large part of the student population is gone on summer break. The mid8winter months are traditionally loss months. Theweather is the most inclement and discretionary income is at its lowest after the holiday binges.@owever, we try to keep our entire staff on board to work on our own inventory, storerefurbishing, and staff training.


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ro (orma rofit and :oss

=ear + =ear 2 =ear 1

7ales 5+,2 5ED,1C DD2,C1E

>irect $ost of 7ales +EE,DC 29,112 219,-C2


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.ro 7orma Cash 7lo$

=ear + =ear 2 =ear 1

$ash %eceived

$ash from


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/?+T !nalysis

/tren&th

• The company have their own retailer shop.

• They provide home delivery services.

• They launch a uniue technology.

• They also provide online selling.

• They give give donation and charity.

?ea0ness-

• The company has only one branch.

• $hallenges of the seasonality of the business.

+pportunities

•The company has to provide more branches.

• 'rea is experiencing population growth.

• $olleges are located near the retailer shop.

Threats

• rice pressure as well as large discount change.

• (luctuation in the economy that effect discretionary spending.


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Exit /trate&y

&f our business goes down and doesnt work or we continuously get loss in it. 7o we will 3ust sell

our business or our property and the money that we get by selling our shops will be divided

among partners. 'nd we will consider other options that are open to us.

Documents

final-mangment.doc