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000000000 MIDLANDS STATE

UNIVERSITY

FACULTY OF COMMERCE

DEPARTMENT OF BUSINESS MANAGEMENT

BUSINESS PLAN

SLADIN M MHURIRO -- R112689B


MEHLULELI A MOYO -- R112700H
PHYLLIS KABVUNDURA -- R11665J
TARIRO MOYO -- R111412E
LINDSAY MHLANGA -- R111452X

PDP

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HMAN

TABLE OF CONTENTS PAGE

Executive Summary……………………………………………………………….3

Vision Mission Statement…………………………………………………………4

Company Overview……………………………………………………………….4

Marketing Plan……………………………………………………………………5

Products and Services……………………………………………………………12

Operational Plan…………………………………………………………………14

Management Plan………………………………………………………………..18

Financial Plan…………………………………………………………………….20

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1. EXECUTIVE SUMMARY
The purpose of this business plan is to raise $200 000 for the development of a
manufacturing and retailing furniture company which will specializes in residential and
commercial properties while showcasing the expected financials and operations over the next
five years. Sladin Furnishers a Zimbabwean furniture company that will provide residential
development by supplying the growing population with affordable furniture with considerate
payment terms for its customers in its targeted market. The company founded by Sladin
Mhuriro and Allan Moyo who realised the need for affordable furniture for the struggling
Zimbabwean population.

The primary revenue centre for the business is acquiring raw materials with the intent to
manufacture new residential and commercial furniture products with the intent to resell to the
general public. This is a strategy that is popular in any economic climate as profits come from
the sale of the property after it is completed. Immediate wealth is created from the moment
that the property is complete. The primary focus of the Company’s marketing strategies will
be the sale of properties.

VISION, MISSION STATEMENT

VISION

 Grow to become the regional furniture benchmark.

MISION STATEMENT
“ABSOLUTE SERVICE IS US”

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 To provide the best customer service through continuous distribution of quality and
guaranteed merchandise at competitive prices.This will be done through:
 Cultivating quality relationships those creative, reputable and efficient suppliers in
pursuit of absolute service.
 Staff development where both internal and external professional training will be given
to employees. This will be supported by a fair rewarding system which will be
cognizant of high performers.
 Working diligently and ethically to ensure maximum return to shareholders.
 Giving back to the community through social support schemes.
Our Principles

We believe in five principles to achieve our objectives:

 Reduced Unit Costs


-Managed Cash Profit
-Truck Utilization and mileage
-Variances
 Better Service Levels
-Adherence to delivery
-Order Fulfillment
 Improve Quality
-Staff
-Warehouse
-Audit
 Constant Innovation
-New projects or ideas
-Exports
CORE VALUES
 Customer care- the organization strives by all means to offer good customer care so as
to create and maintain good relations with the customers.
 Ecology
 Awareness and integrity
 Ethical practices

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2. MARKETING PLAN

INDUSTRIAL ANALYSIS:SWOT ANALYSIS, ENVIRONMENTAL ANALYSIS AND


COMPETITOR ANALYSIS

2.1 SWOT ANALYSIS

STRENGTHS

 Good brand reputation


 Ability to meet competition in most cases
 Exclusive or Unique selling points e.g. South African beds, Marina lounge suites
 Availability of a reliable delivery vehicle
 Committed and friendly staff
 Offers quality guaranteed products

WEAKNESSES

 Uncompetitive prices especially with regard to imported electrical products


 Charging for deliveries while its competitors offer free deliveries
 Outlet slightly out of the busy CBD
 Manual processes which render us less efficient
 Product shortages especially fast sellers like Superior Princess stoves, Tudor kitchen
sets, Capri products, glass coffee tables and vita beds

OPPORTUNITIES

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 Market base increasing as mines move to increase operational capacity for example
Unki Mine, ZIMASCO
 The introduction of duty on all household items thus boosting the organization’s sales
and market share.

THREATS

 Competition ever increasing which forces us to reduce margins in most cases


 The 2013 elections may negatively affect the rate of purchases by customers
 Too many companies entering into the furniture market for example, NANO
Appliances which opened September of 2012.

2.2 ENVIRONMENTAL ANALYSIS (PESTILEG factors)

 PESTILEG is an analytical tool which considers external factors and helps us to think
about their impacts on business and is a useful tool for understanding the “big picture”
of the environment in which we are operating. By understanding our environment, we
can take advantage of the opportunities and minimize the threats.
 Trade partners
 The issue of limited trade partners which was caused by some political moves like the
imposition of “sanctions” by former trade partners that include the European Union
and USA has negatively affected Sladin Furnishers as an importer and exporter. This
resulted in the organisation failing to trade with companies from these countries
which have barred some of their companies from trading with Zimbabwean firms.
 The government also introduced the “Buy Zimbabwe Campaign” earlier this year so
as to reduce imports and encourage the purchase and use of local raw materials and
products. This however had both negative and positive effects to Sladin Furnishers.
The negative effect was the rise in the costs of importing raw materials and other
imported items. On the other hand the company’s sales figures showed some
improvement as customers began to realise that it was now cheaper to buy from local
companies compared to importing from other countries like South Africa and
Botswana.

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 Sladin Furnishers also enjoys the freedom to press because there is no political
interference that can affect or stop the organisation from going to press with
advertisement and other public relations messages.
 Economic factors
 There has been a rise in the living standards of the people of Zimbabwe since the
introduction of the multicurrency use and this has increased the demand of household
products, people replacing old furniture with the new ones because they can now
afford to. This is providing greater opportunities for Sladin to make profits as the
economy is improving and becoming more favourable for businesses.
 Inflation
 The introduction of the multicurrency system in the local economy has helped Sladin
Furnishers to reshape its business that had lost its shape in the decade of recession –
1998 to 2008. Sladin furnishers has managed to reopen branches around the country
including Gutu Mpandawana branch, Mutare, Marondera and Rusape branches. It has
also allowed the organisation to trade at a profit because suppliers prices have
stabilised and year on inflation rate at 3,63%. The organisation can now trade well
better than in the past few years. (according to RBZ)

 Economic growth
Economic analysts have predicted an improvement in the Zimbabwe economy within the next
5 years so the organisation is planning to reopen more closed branches and returning into new
markets. Sladin has also cemented trade relations with its customers and major suppliers
such as Capri and Tregers so that in the event that the economy crumbles again the
organisation will be guaranteed adequately supplies and long lasting relationships with its
stakeholders.
Customers’ Income
The organisation is also affected by the customer disposable income for example, in Gweru
and other small cities, the major customers of Sladin Furnishers are civil servants whose net
salaries average $400 so these branches usually stock average priced products. Whereas the
Harare branches sell large and high class products and also make more profit because of the
higher income earned by most customers in the capital city.
 Unemployment
The rate of unemployment/ underdevelopment in Zimbabwe currently stand at 95% this rate
is very unfavourable in the furniture business because for one to open an account with Sladin
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Furnishers they must produce a proof of employment to show that they are capable of paying
monthly instalments. Thus limiting the number of the organisation’s potential customers. To
cater for this problem the organisation is trying to offer another form of purchase which is the
lay bye of up to 12 months to pay for the product and collect after full price.

 Considering the effects of harmonised elections on the Zimbabwe economy the
organisation is avoiding total dependents on borrowing funds as interests rates will be
unpredictable during the election period.

 Socio-cultural factors
Population
 The rising population in Zimbabwe has resulted in the expansion and extension of
residential areas in Gweru as well as the construction of new ones such as Nehosho,
Ascot Infill and Woodlands. This means that the newly built homes need furnishing
and thus providing more opportunities to the organisation.
 The population of this country is dominated by the youths and this is the reason why
the majority\Sladin Furnishers’ employees are the young people. The young are
energetic and thus the work is done effectively and efficiently, that is, running around
Sladin serving customers and doing research and market surveys.

Employee attitude
 Employees attitude to work also affect business. For instance if one employee has a
problem or faced a problem in the society they live in or any other problem they are
more likely going to be affected in the way they interact with customers negatively, so
Sladin Furnishers is training its superiors how to enter the zones of comfortable
debates with its employees so as to address some issues that silently affect them
socially

Legal factors
 These are related to the legal environment in which we operate in, there have been
few significant changes that have affected the operation of Furnishers in the past
year. The organization has a 100 % local ownership thus being in line with the
indigenisation policy that was set by the government, stating that all organisations
operating in Zimbabwe should have 51% local ownership or more.
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“Buy Zimbabwe” Campaign
 The introduction of this campaign protects local firms and so Furnishers also
benefited since imports are now expensive most customers are now buying local
products which have helped improve the business in Zimbabwe.
Employment laws and trade unions
 Employment laws and trade unions that represent employees and set minimum wages
also affect the organisation; however Sladin Furnishers has managed to peg the
salaries above the minimum requirements to avoid problems and clashes with these
unions. The issue of price controls is one factor that negatively affected the
organisation’s profits as the customer protection agencies do not place much
consideration on the costs but concentrate more on the selling price; this however has
forced the organisation to reduce the mark up through operating at a small profit.
Health and safety
 The organisation also focus on the health and safety requirements by providing
necessary first Aid Kit at all branches in case of injuries during work as well as
protective clothing when using harmful and health threatening items.

 Technology
Introduction of computer and computer system
 Technology has been helpful in achieving the goals of the organisation like effective
communication with all stakeholders as well as providing new products as expected
by customers. The introduction of computers and computer systems in product design
makes it possible for the organisation to produce high quality, consumer favoured
products. Quality control has also been made easy by the introduction of computers
in the organisation. This has ensured that the organisation provides high quality
products only, inventory control has also been made easy because the organisation use
pastel to closely monitor the movement, allocation and transfer of stock within the
branches.

 The organisation keeps an updated customer data base so that it can communicate and
keep track of all the customers, therefore information is kept both on hard copies and
soft copies. This helps avoid total loss of information in case unexpected events like
fire occur.
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The internet
 The rise of internet and e-marketing brought more advantage to business as people
can now do business and search and buy products in the comfort of their homes. The
internet is also becoming the best form of communication above other forms like
radio, newspaper and others Sladin furnishers has taken the of the rise of the interne
by connecting e-mail addresses for all the branches for easy communication with
suppliers and customers who often use the internet.

 Technological advancement
 Some products are being phased out because of the technological advancement. For
example, old TV are being replaced with LCD and LEDs so Sladin Furnishers is
working hard to ensure that they stock new products that are tomcatting the market as
a way of avoiding losing customers to competition.

 Some innovative ideas can be found on the internet and the changing needs of
customers can also be learnt by the use of the internet. Sladin Furnishers takes
advantage of that to ensure the satisfaction of customers.

Environmental/ecological factors
Weather conditions
 This refers to the climate, whether and the environment at large in which the
organisation operates in. The weather conditions affect Sladin Furnishers in such a
way that the products that a sold depending on the season need to be considered well
before that season. For example the demand for heaters is high in winter so to avoid
surprises the organisation orders and stock more of them before winter arrives and
sometimes keep a few for those few who want to buy in summer for the preparation of
winter. In summer the demand for fans is high as well as small office fridges and
water dispensers. Sladin Furnishers has managed to stock all these.

 Sladin Furnishers need to keep an eye on the environment it operates in to make sure
that it is clean. This can be done by donating rubbish bins to be used in cities they
operate in and at the same time they will be showing that they care about the society.
These bins placed around town can also help to advertise the organisation because
they will be written information about the organisation.
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Clean up campaigns
 Embarking on clean up the streets campaign whereby staff members take brooms to
the streets cleaning them up can bring much advantages to the org, the general public
when they see the efforts and how humble the organisation’s staff can be they will
foresee good services and this can increase the number of customers. Some who do
not know Sladin Furnishers will get to know that there is a Sladin Furnishers branch
in town. The organisation conducts an annual family fun day every November of
every year whereby customers stand a chance to win big prices and socialise with the
staff and directors of Sladin Furnishers.

COMPETITOR ANALYSIS

The main competitors for Gweru branch are Coloursell and TV Sales and Home, while others
are Nyore Nyore, Firmhouse and other small players

1.Coloursell :This is our main competitor as it offers most generic products to those that
we offer to the market. They are always well stocked especially with cash cows of the
market e.g. stoves fridges and metal kitchen units. Provide a delivery with no extra charge
within the radius of 15 km in Gweru. Offers diversified products such as Defy products,
Kelvinators, Capri products and KIC products. Operates two branches of which all of
them are in the C.B.D were there is high human traffic.

2.TV Sales and Home

There are the formidable forces in electrical appliances and high class lounge suites that
appeal to affluent market

They are usually well stocked with a variety of products in terms of brands in televisions,
hi-fis, lounge suites and stoves

Their shop is well merchandised

It is the market leader in the electrical appliances segment due to their direct import
scheme.

3.Nyore Nyore (now TN)

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The TN shop is a strong market contender in beddings, lounge suites, dining room
sections

Their products are exclusive to such an a extent that there are no basis for a direct
competitor analysis survey report

They offer the largest account period to 36 months at very low finance charges

Currently they do not offer delivery services

4.Firmhouse

Arguably the best seller of Vita beds

They provide a wide range of both local and imported products.

Their prices are not very competitive

Offers delivery services

5.Bradlows

The Pelhams Group Company seem determined to reclaim its top position in sales of
lounge suites.

They are now stocked in Flair and Unifair lounge suites. Prices are becoming more
competitive in these products.

Have the lowest deposits in the market (30%)

Do not have deliveries services

3.PRODUCTS AND/OR SERVICES

The product lines of Sladin Furnishers are classified by departments as follows:-

 Kitchen department products: electric and gas stoves, freezers and


refrigerators, metal and wooden kitchen dressers, kitchen chairs.

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 Lounge department products: - lounge suites, carpets, coffee tables and wall
units.

 Electricals department products: - televisions, LCDs, hi-fis, electric kettles,


washing machines, DVDs, toasters and so forth.

 Dining room department: - during room suites.

 Bedding department products: - wardrobes, beds and bedroom suites.

 Office department products: - desks, chairs, filling cabinets, bookshelves.

Bedroom products
In this product line the organization ensures that it satisfies the needs of customers in
terms of their desire for bedroom products. Within this line fall products such as bedroom
suits, bed sets, duvets, standard and continental pillows, bed sheets and wardrobes. To
satisfy almost every person in terms of his/her status, the organization has been able to
source bedroom products that suit single, married, high income earners and low income
earners. For example, Takura bed set which targets low income earners and single
persons, while high quality bet sets such as the king size Miracoil target those who earn
higher incomes as well as the married ones. This also applies to wardrobes, bed sheets
and duvets. The organization has also managed to cater for the young children by making
available Bunk beds.

Kitchen products
The organization’s market share is also contributed by selling kitchen products such as
deep freezers, kitchen sets, electrical stoves, gas stoves, gel cookers, 3piece kitchen units,
refrigerators and microwaves. Sladin Furnishers tries to provide customers with products
that

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best suit their status and also where they live. For example, gas and gel cookers for those
who do not live within electricity networks. Some of the customers may need deep
freezers for commercial use and thus, the organization has thrived to provide them with
much bigger freezers such as the Capri 530litre and the defy 530litre. Hence those who
buy for home use may opt for the much smaller ones such as the 210litre or 270litre
freezers. Other kitchen accessories that the organization provides are warm &cold water
dispensers, rice cookers and electrical kettles.

Lounge products
This product line tries to cover every corner of the lounge room. In this product category
Sladin Furnishers provide its customers with the following products;

Plasma stands, TV cabinets, Wall units, carpets and a whole lot of various kinds of lounge
suites. Again to satisfy all customers the organization provides sofas that suit low income
earners such as the marquise lounge suite and the leather relaxation lounge suit for those who
earn higher incomes.

Dining products
In this product line the organization provides the customers with products such as dining
tables& chairs and coffee tables. Mainly it provides 8 seater dining suites but of different
colors to provide the customer with a choice to choose form. However special orders can
be done for any varying customer choices.

Electrical products
The customers are also provided with electrical gadgets which include electrical irons,
fans, heaters, radios, electrical kettles, DVD players and LCD and LED TVs.

4.OPERATIONAL PLAN
An evaluation of the company’s departments and activities

PROCUREEMENT DEPARTMENT

DUTIES AND RESPONSIBITIES


 Supplier selection

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 Placing orders
 Follow up and expediting
 Receiving
 Inspection
 Processing of discrepancies and rejection
 Maintaining files and records

At Sladin Furnishers, purchasing department is considered as one of the most important


departments in the organization. This department determines the operation of the organisation
in terms of the quality, quantity and time. At Sladin furnishers stores and purchasing sections
falls under one management. This has been done for the following reasons:
 Department friction is minimized
 It reduces a number of working personnel’s
 It enhances better quality control

SUPPLIER SELECTION
Supplier selection is a key activity of the purchasing department. Sladin does multiple
sourcing of suppliers since it sells a variety of products and of the same nature, for example it
sells different types of refrigerators from different suppliers. Capri, defy, Samsung to mention
a few.
In the organization, when selecting suppliers quality of products and packaging is considered
most. Most often price comparison is omitted especially at branch level because payments are
done at the head office for discounting purposes.

The policy is that all suppliers should register with the organization first for them to supply
their products. Though there are still upcoming suppliers who register every day, Sladin
furnishers has reputable suppliers of which have good relation in the past, supplier like Capri,
defy, JVC, Philips to mention a few.

When selecting suppliers at Sladin both small and big suppliers are considered, this is
because there are some small and niche products needed in the market which big suppliers
cannot supply as they may be unprofitable, so to balance the equation and at the same time
attracting customers it has to source also from the small suppliers such as Panasonic which

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supplies irons hair clippers and many other small items which can be used to enhance sales
through offering them as Free Of Charge items after a customer buys an expensive product.

PLACING ORDERS

Placing an order at Sladin Furnishers leads to the completion of the order form.
Computerized stock ordering is used, and hence very fast and efficient. It also makes work
easier when the products are received for pricing. The program just like pastel program,
(Retail management program) automatically prices the product as per the markup assigned.
Not only is it for ordering and pricing, it is also a tool which helps to view the quantity of a
product that was sold for the month, day or week and alerts management if a product is nearly
out of stock. Thus accurate stock counting is also enhanced by this program. Of late when
placing orders, a method of counting stock model files was used, but because of
computerized system work has been made easier than before. Stock model files were books
which contained lists of products of a supplier, the name of the supplier and the contact
details.

Stocktaking exercises are done on a monthly basis to ascertain the value of goods in stock. In
case of G.I.Ts (Goods in Transit), these are also considered as part of the closing stock of that
particular month.

OPERATIONS OF THE COMPANY (across all branches)

PAYMENT TERMS

Sladin furrnitures conducts its business through using 3 basic payment methods that
customers can use. These are as follows;
 Cash
The customers can purchase products through paying the cash price of that product. Thus
when a customer pays for cash an invoice is immediately raised to record the transaction.

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Normally the organization discounts every cash purchase to enhance its relations with the
customers.

 Account
A customer is said to have purchased a product by use of account when they pay the
product’s deposit and then to pay monthly installment thereafter. Again an invoice is
raised to record the transaction. However, For one to enjoy the terms of paying a deposit
and monthly installments later he/she is required to provide the current original pay slip, 3
months bank statement, proof of residence and photocopy of I.D .

 Lay-bye
The lay-bye payment term entails that the customer pays for a product that he/she can not
use until his/her payments reach the cash price. That is, when a customer’s payments
amount to the cash price within the specified period of months the organization then gives
the customer their product.

How the organization communicates

Sladin Furnishers has a one way communication system from the head office to all branches.
However, within a branch, there is a two way communication channel between the manager
and the staff in which they share and exchange views.

Leadership style
At branch levels there is usually democratic leadership in which branch managers accept
employees to take part in decision making. However, looking at the organization generally
there is some sort of autocratic leadership through which the head office gives other branches
orders and targets without consulting them.

How the organization motivates its staff

Usually the organization motivates its employees through fair and performance rewarding.
Moreover, when duties are performed after working hour the organization pays for the time
worked immediately. Thus, such immediate compensation really motivates employees. The

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organization also allows its employees to take products on credit on much more favorable
terms.

5. MANAGEMENT PLAN
The Board of Directors

The current Board of Directors consists of five members of which two are executive
directors. All the directors are Zimbabweans. Set out below are full names and profiles of the
Directors.

i. Sladin Masimba (Chairman and Non-ExecutiveDirector)


Sladin is the Chairman of the Sladin Furnishers. He brings a wealth experience in marketing
and retailing, having worked for BP and Shell Zimbabwe, Makro, Unilever, Intermarket Life
Assurance and Zimbabwe Cricket.

ii. Allan Moyo (Non-ExecutiveDirector)


Allan is a seasoned banker who has worked for Zimbank, Zimbabwe Allied Banking Group
and Stanbic Bank as Head of Credit Support and Risk Management departments

iii. Phyllis kay (Non-ExecutiveDirector)


Phyllis is the Managing Consultant/ Director of Southern Trust Advisory Services, (successor
to Capital Edge (Pvt) Ltd). She is a holder of Master of Laws - International Economic Law
from University of London.

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iv. Lindsay Mhlanga (ManagingDirector)
Lindsay has vast experience in furniture retail and Motor industry serving at the top
management level. He is a member of the Zimbabwe Institute of Management and Institute of
Purchasing and Supply.

v. Tariro Moyo (ExecutiveDirector)


Tariro Moyo has worked for Sladin Furnishers for than five years. She is currently the
Head of Sladin Furniture manufacturing division, a new project that has become
renowned hardwood furniture manufacturing.

1.2 ORGANISATIONAL ORGANOGRAM

Mandatory Management Services


SLADIN MHURIRO(C.E.O)

Marketing Procurement Chief Operations Group H.R.Manager


Manager. Manager Officer Accountant

BRANCHBRANCH BBRANCH BRANCH MANAGER BRANCH MANAGER BRANCH MANAGER


MANAGER MANAGER

ASSISTANT ASSISTANT ASSISTANT MANAGER ASSISTANT ASSISTANT


MANAGER MANAGER MANAGER MANAGER

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Credit Controller
6. FINANCIAL PLAN
The purpose of this business plan is to raise $200000 for the development of a furniture shop
that specializes in residential and commercial furniture for as a going concern.

Sladin Furnitures Proforma Statement of Comprehensive Income for the year ended 31
November 2017, 2018, 2019.

As at December 31 As at December
2017(USD) 31 2018(USD)

Revenue 26 448 894 29 622 761

Cost of Sales (18 844 636) 20 000 000

Gross Profit 7 604 258 9 622 761

Other operating income 1 044 476 1 945 123

Distribution Costs (545 446) (1 100 125)

Administrative Expenses (2 970 068) (3 827 545)

Other operating Expenses (3 259 371) (5 815 489)

Profit from Operation 1 873 849 824 725

Fair value gain on investment


property
0 50
Finance Income
3 588 2 254
Finance costs
(847 129) (987 254)

Profit Before Taxation 1 030 308 160 225

Taxation 360 608 48 068

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Net profit 669 700 112 157

Sladin Furniture’s Statement of Financial Position as at 31 December 2017, 2018, 2019

As at 31 December As at 31 December
2017(USD) 2018( USD)

Assets

None current Assets

Property Plant and 7 216 602 5 514 023


Equipment

Investment Property
60 000 50 000
Investments in Subsidiaries
1 006 206 1 256 251
Total Non current assets
8 282 808 6 820 274

Current Assets

Inventories 4 562 004 3 514 625

Trade and other Receivables 5 261 434 4 151 789

Related Party Balances 5 261 434 6 364 547

Current tax assets 41 770 35 000

Cash and cash equivalents 431 839 954 566

Total Current assets 10 297 047 15 020 527

Total Assets 18 579 855 21 840 801

EQUITY AND
LIABILITIES

Capital and Reserves


1 507 334 907 334
Share Capital
7 437 012 7 958 231

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Non-Distributable reserves (1 605 670) (905 670)

Retained profit 669 700 112 157

Total capital and reserves

Non-current Liabilities

Deferred tax liabilities 971 454 654 102

Current Liabilities

Trade and other payables 4 272 196 3 021 655

Provisions 512 154 320 151

Current tax payable 501 000

Borrowings 5 445 375 2 012 00

Total Current liabilities 10 229 725

Total Liabilities 11 201 179

Total Equity and 18 579 855


Liabilities

Breakdown Analysis of Profits

General Assumptions

 It is assumed that short term interest rates will increase in the third year from
the current rate of 9.5% to 12%, and that the long term interest rate will remain
constant at 10% for the next five years.
 Sladin Furnishers Developer will have an annual revenue growth rate of 12%
per year.
 Investor funds will be available to develop the business.

Financial Requirements

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The firm will seek to raise $200000, half from an investor and half from internal equity as
sources of finance. The terms, dividend payouts, and aspects of the deal are to be determined
at negotiation. This business plan assumes that an investor will receive 50% of the
Company’s stock, a regular stream of dividends, and a seat on the board of directors

PLANNED STARTUP COSTS US$

Construction costs $50 000

Company Vehicle $8 000

Marketing $5000

Unforeseen costs $2 000

Working Capital $2 500

Office Space $2 200

Furniture, Fittings and Equipment $8 500

Total Start up Costs $82200

Use of Funds
Initial Lease Payments and
Deposits
Lease Hold Improvements

Construction Costs

Company Vehicle and


Lease Deposits
Marketing Budget

Miscellaneous and
Unforeseen Costs
Working Capital

Office Space

Furniture, Fittings and


Equipment

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Sources of Finance

Finance

Equity Contributions

Management Investment $51 450

Investor $51 450

Total Equity Financing $102 900

Banks and Lenders

Banks and Lenders -

Total Debt Financing -

Total Financing $102 900

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REFERENCES
1) Philip Kotler, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha, 2006, Marketing
Management (A South Asian Perspective), 13th Edition. Pearson Education, South Asia.

2) John A. Pearce 11, Richard B. Robinson, Jr, 2007, Strategic Management: Formulation,
Implementation and Control, 9th Edition. Tata McGrew-Hill, New Delhi New York.

3) www.learnmarketing .net

4) www.techerzfurnishers.com

5) The relationship among survivor qualities – attitude, commitment and motivation – after
downsizing. Crispen Chipunza1* and David. M. Berry, May 2010.

6) Christopher Molanda and Jonathan Winterton, Managing Human Resources, (1994)

7) Drucker P.(1985) Innovation and Enterprenuaship Heineman

8) "http://www.businessknowhow.com/startup/business-failure.htm"

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