This study is prepared for the startup of skilled adult male power supply concern in Vietnam specialized in Insulation, staging, furnace lining and fireproofing industrial services. The name of the adult male power supply concern is Verve Solution with an aim of supply of skilled adult male power and quality satisfaction with a trade name consciousness in their clients.
To startup, concern the chief beginning of fund is from two beginnings, the owners salvaging and barrowing from his household on fixed period of return. Vietnam is one of the fastest turning states in the universe and the deficiency of skilled adult male power attracts the owners for this company to get down up this concern. This study will discourse all the critical issue sing Verve Solution location, market chances, client, competitory success factors for this organisation, publicity, market scheme, pricing scheme, cardinal personal, and their duties, fiscal programs, fiscal prognosis, and all the sensitive analysis for the success of Verve solution.
The Organization will go successful skilled adult male power supply with their direction squad committedness and dedication toward the organisation.
Table of Contentss
Executive Summary: 2Table of Contentss 31.0 Introduction: 32.0 BUSINESS NAME AND ADDRESS: 42.1 PROPRIETOR ‘S NAME AND ADDRESS: 42.
2 FORM OF BUSINESS: 42.3 BUSINESS ACTIVITIES: 43.0 MISSION STATEMENT: 43.1 VISION STATEMENT: 53.2 OBJECTIVE OF VERVE SOLUTION: 54.0 PEST ANALYSIS OF VERVE SOLUTION: 65.
0 PROCEDURE TO START A BUSINESS IN VIETNAM: 85.1 GOVERNMENT SUPPORT, RULES, AND REGULATION: 106.0 RATIONALE FOR LAUNCHING A BUSINESS: 106.1 PENETRATION OF VIETNAM MARKET: 116.1.1 SUITUATION Analysis: 116.1.2 PROJECT DEVELOPMENT AND INVESTMENT Plan IN VIETNAM: 127.
0 LOCATION SELECTION: 138.0 Target Customers: 149.0 COMPETITION OF VERVE SOLUTION: 149.1 VERVE SOLUTION CAMPARISION WITH THEIR COMPITITORS: 169.2 VERVE SOLUTION ANALYSIS: 169.3 VERVE SOLUTION CRITICAL SUCCESS FACTOR: 1710.0 VERVE SOLUTION PROMOTION AND MARKETING STRATEGY: 1811.0 VERVE SOLUTION Pricing STRATEGIES: 1912.
0 VERVE SOLUTION EMPLOYEES DETAILS AND RESPONSIBILITIES: 2013.2 RESOURCE OF FUNDS: 2213.3 ESTIMATED SALARY DETAILS FOR THE EMPLOYEES: 2213.4 FIXED ASSEST: 2313.4.1 MACHINERY AND EQUIPMENTS: 2313.
4.2 Premises: 2413.4.4 START UP EXPENSES: 2413.4.5 OPERATING Cost: 2414.0 SALES Prognosis: 2515.
0 FORECAST INCOME STATEMENT: 2516.0 FORECAST CASH FLOW STATEMENT: 2617.0 FINANCIAL HIGHLIGHTS: 2718.0 Monthly CASH FLOW FORECAST: 2819.0 FORECAST BALANCE SHEET: 2920.0 SENSITVITY ANALYSIS FOR VERVE SOLUTION: 2921.0 REFRENCES: 32APPENDIX 1: Expense cost for the Manpower supply 34
The Purpose study is to fix a concern program to setup my ain concern for the supply of skilled work force concern in Vietnam.
The chief intent for this concern is to make a trade name image for this concern and nucleus success for this organisation lies in the advanced thought in this concern. The organisation is alone in itself with an aim based on quality services. The ground to get down this concern is its alone nature and high demand of this services in the developing economic system of Vietnam. A recent determination on the Vietnam authorities in their alleviation to the enterpriser to get down the concern in Vietnam and their investing program for the building undertakings open the door for the Verve solution and past experience for the owner in this field and assurance as a enterpriser of old successful in his eating house concern which he still have in Vietnam helps the organisation for their success.
2.0 BUSINESS NAME AND ADDRESS:
Verve SolutionsRoom No 3, Nam Ky khoi Nghai, Dist 1 Ho Chi Minh, Vietnam
1 PROPRIETOR ‘S NAME AND ADDRESS:
Sharique AftabRoom No 3, Nam Ky Khoi Nghai, Dist 1, Ho Chi Minh, Vietnam
2.2 FORM OF BUSINESS:
2.3 BUSINESS ACTIVITIES:
This company specialized in supply of skilled adult male power supply of Insulators, Tinsmith and storyteller, Qualified QA/QC forces and appraisal and material supply of all type Insulation, Refractory, Fireproofing and scaffolding plants.
In extra company is responsible to move as a Technical subcontractor to execute all sorts of Insulation work. Besides, company is besides supplying enfranchisement and preparation of scaffolders and Insulation adult male powers.
3.0 MISSION STATEMENT:
The company provides the highest degree of adult male power supply and subcontractor which will specifically with the demand of the clients, and the company will work with that organisation which truly demonstrate the importance of quality and are committed to their concern development.
3.1 VISION STATEMENT:
The company aims to be a multimillion dollar company supplying supply of quality work force and undertaking solution for the diverse scope of organisation throughout Vietnam by 2020.The company will construct an enviable repute by supplying a extremely trained skilled work force, and high quality proficient solution which adding value to our clients.
3.2 OBJECTIVE OF VERVE SOLUTION:
Skilled Manpower supply.To supply all quality satisfaction for the clients.To construct a trust to the clients.Achieved the breakeven point in 1years.Flexible with the measure to the supply.
Immediate handiness of work force ‘s.
To make the best company in the state.To make the trade name image in the industry.
To make the best service supplier with 100 % client satisfaction from the rivals.Construct the strong repute in the markets.To add more services in the insularity industry.To aim to provide manpower for different industry.To open 10 preparation centres and 5 office in different portion of Vietnam in following 5 old ages.To became the specializer in the insularity industry.
To set up a planetary company.To set up public limited company and list into a stock exchange.To spread out the concern into different advanced thoughts.
4.0 PEST ANALYSIS OF VERVE SOLUTION:
Single Communist party.
Greater political stableness.Better alteration to do a good relation with the local authorities and negotiate with them.Vienames authorities determination to developed and implement a public private partnership for the development of the state substructure.Government determinations to reform in the corruptness system, which are, impede the substructure development for Vietnam.
The 2009 GDP ( PPP ) of Vietnam is US $ 256.584 billionThe GDP Growth for 2009 is 5.
3 % and the GDP by Sector is 19 % for Agriculture, 42.7 % for Industry and 38.4 % for Service. ( As per 2008 ) .Price leading scheme is the best to utilize to provide the largest demographic which mean to sell a cheaper and more basic merchandise than comparison to premium merchandises.
Cheap labour is available to the Vietnam market.There is a continues rising prices in the economic system, present rising prices rate is 7 % ( 2010 ) , which is the 179 rank in the universe which is -73.1 % from the last twelvemonth.Vietnam holding 13 % of the population is below poorness line ( 2005 ) and there are 48.
41 million of labour force ( 2008 ) .
There is a linguistic communication barrier for the foreign state as Vietnami is the chief beginning of linguistic communication in Vietnam.85 % of the populations in Vietnam are Buddhist.Media and the cyberspace is making awareness in the population of Vietnams.Peoples understand advertizement in Vietnami linguistic communication merely.It is better to understand the local value and civilization which offering merchandise and service.
Vietnam is rank twentieth in the universe for the cyberspace users of 24.3 m users in 2010.
Present manner of communicating will be nomadic, cyberspace and the telephone.Website for the Verve solution can be developed as there is inexpensive web developer are available in Ho qi minh and Hanoi.
5.0 PROCEDURE TO START A BUSINESS IN VIETNAM:
To get down a concern in Vietnam there are 11 process which any company has to follows which take 50 yearss lower limit and which 13.29 % of the entire Gross National Income ( GNI ) per capita which is 2790 US $ .Beginning: hypertext transfer protocol: //www.doingbusiness.org/~/media/fpdkm/doing % 20business/documents/profiles/country/db11/vnm.
pdfThe process to get down any concern in Vietnam is as follows:Company name should be registered in a local registered Centre under the section of planning and investing, which takes around 15 yearss after subjecting the paperss.Once the company is registered so Seal doing licence is issue from the public security section, which takes around 5 yearss.Making company seal that take around 5 yearss.Company seal ready to pick up from them and it take one twenty-four hours, which is traveling to have merely in the eventide after 3:00pm.
Following is unfastened company bank history which take a one twenty-four hours.Then have to print company proclamation in any local newspaper in Vietnam which take another one twenty-four hours.Apply to the municipal revenue enhancement section of Vietnam to acquire the Tax codification of the company to pay the company concern licence revenue enhancement two to three yearss.VAT bill should be purchasing from the revenue enhancement section or you can publish it besides, but it is cheaper to purchase from the revenue enhancement section. It takes another three yearss.
After that demand to registered with the municipal section to declare the usage of labour in close local office in metropolis.All the employees should be registered which the societal insurance financess to acquire the benefit for the wellness insurance and the societal insurance.Last need to registered with the trade brotherhood. ( Vietnam general consideration of labours )Overall procedure takes around 50 twenty-four hours to startup of any concern in Vietnam.
5.1 GOVERNMENT SUPPORT, RULES, AND REGULATION:
The authorities of Vietnam introduces a new private endeavors jurisprudence in 1999, harmonizing to this jurisprudence the minimal capital demand to get down up the private endeavor for trading and service should be 250 million VND ( 15000US $ ) .There should be two process, foremost to obtained a established licence from the authorities and so follows the above process to obtain the concern enrollment from the authorities.
6.0 RATIONALE FOR LAUNCHING A Business:
The building of 2nd refinery with a worth of 8 billion US dollar undertaking which is agenda to be start in 2010 and the 3rd refinery which is agenda to get down in 2014 which required a immense sum of skilled adult male power supply in Vietnam.While working on the first refinery in Vietnam there was two major subcontractor for Insulation contract in which there was a deficit of skilled work force which consequence in loss of contract for the 2nd subcontractor called Prezioso, which non able to execute their contract work on clip due to the deficit of skilled work force, which consequences the client back charge all the hold in work sum to Preziosio and handover the balanced contract to KAEFER to execute all the balance insularity work which result a trouble to KAEFER to execute all the contract worth of 25 million US $ insularity for the first refinery, Due to which KAEFER hire a subcontractor from India for Manpower supply to execute the work which consequences in hold in completion of insularity work due to arrangement and dialogue with subcontractor to provide of 500 skilled work force from Thailand,200 skilled storyteller from India and 2000 skilled and unskilled work force from Vietnam, result a immense net income to Insulation subcontractor from Thailand paid by the KAEFER to execute the plants.
KAEFER and Preziosio are the major companies in Vietnam holding their offices in Vietnam and France severally. But to execute the work at that place is non major subcontractor to execute the work on a big graduated table.Vietnam is a state, which do non hold a skilled labour to finish the occupation. The thought to set up my companies to provide the skilled adult male power to bridge a spread.Harmonizing to ( Global trade,2010 ) present state of affairs Vietnam market is one of the emergent market in the universe.
Market growing is one of the fastest turning economic system in the universe which is spread outing globally with a 5 to 8.5 % per annum. There is growing of a 14-15 % per annum in the industrial merchandise.Vietnam GDP is 5.3 % in 2009, which is one of the most impressive economic growings in the universe. There is a anticipation for 6.5 % of GDP in 2010.In 2009 the entire 40 % of the GDP is added by the industry in Vietnam, followed by agribusiness of 21 % and the service industry of 39 % .
Which indicate a growing of the industry which Verve solution is aiming.
6.1 PENETRATION OF VIETNAM MARKET:
In order to analyse the market size and growing following analysis being done:
1 SUITUATION Analysis:
The present position of the concern place in market with all the assorted chances from concern freedom to labour freedom as compared with the mean universe market concern in the below fig.Beginning: hypertext transfer protocol: //www.heritage.
6.1.2 PROJECT DEVELOPMENT AND INVESTMENT Plan IN VIETNAM:
Till 2010 there was 70 undertakings are working consist of little and big undertakings deserving value of US $ 7.
1 billion of investing coming from assorted in private beginnings.There are two major undertaking started in 1993 with the 100 % investing from the private foreign investing that undertakings was Phu My Power works and the natural gas power line undertaking. In 2008~2010 under the foreign engagement of substructure development program the foreign investor can put in a undertaking under the ordinance of Build Operate transportation ( BOT ) .
According to this ordinance private investor can construct the substructure and bear down the duty on the concern on the in agreement period of clip with the Vietnam Government.In 2010 A new bill of exchange of public private partnership ( PPT ) the authorities will put 30 % of the fund to pull more foreign investor in Vietnam, which is traveling to implement from 2011.Its open a new chances for assorted substructure building in Road, Airways, Refinery, Power, steels, cement. Major of the Energy and gas power are ain led by EVN and the Petro-Vietnam.Majority of the fund in Vietnam substructure development come from Overseas Development aid ( ODA ) in which Japan is the major support beginning in ODA, and the active presence of Nipponese companies in Vietnam. So most of the plants are now contracted to the Nipponese companies ( First refinery EPC contactor was JGC, Japan and for the 2nd Refinery EPC contractor is JGC ( Japan ) and with the aid of local building companies they are implementing the undertakings.There are assorted upgrade of airdrome near Ho qi minh which is traveling to get down in 2011 worth of 8 billion US $ , All the investing is an ODA support which open an chances for the skilled work force supply.
There are major development in port sector in which companies like Hutchison, Hong Kong, Singapore port and SSA Marine, USA companies are involved, there is besides a major skilled manpower demand.The starts of 2nd refinery in 2011, the three major power works undertaking, two major steel workss, and the two major steel workss unfastened chances of major insularity, staging, furnace lining and the fireproofing works.Due to the big substructure in Vietnam, the best chance is the supply of skilled work force which is a acute deficit in Vietnam.
7.0 LOCATION Choice:
Verve solution situated in Ho qi minh the fiscal capital of Vietnam. The entire population of this metropolis is 9 million which expected to spread out by 30000 sq km which population of 20 million by 2020.The overall GDP of Ho qi minh is 20.2 % ( 2010 ) for overall Vietnam GDP.
There are more than 300,000 little and medium concern office which includes 15 industrial park, with more than 50 different Bankss runing with more than 100 of their subdivisions in this metropoliss. There are more than 20 insurance companies are runing.Around 171 medium and little market are in ho qis minh including promenades, ace markets.All the major oil and gas companies, EPC contractors and all the local company caput office are in Ho qi minh. This is the best topographic point to open the work force supplies to develop a good relation with all the major EPC contractor and the Vietnamese companies.
There are major adult male power supplies companies but none of the companies is providing skilled Insulation, staging, furnace lining work force ‘s. This is a niche market for my concern and got chances to develop a good relation for the manpower supply concern with these companies.
8.0 Target Customers:
All the major EPC contractor and subcontractor for Insulation work are the mark client. Assorted transnational companies are aiming the market which they do non hold the work force, Verve Solutions will construct a good relation with all the major EPC companies with supplying a best quality service to them and besides utilized all the modern tools and technique and market relation to up to day of the month for new possible clients. The past experience in Vietnam while working on the assorted undertaking ( One Petroleum refinery Undertaking, One Aluminum Refinery, three power works, one steel works and one Polypropylene undertakings and assorted other onshore and seaward support undertakings ) and keeping a good relation with companies manager with all the major subcontracting companies and understanding the concern scheme while working at the assorted undertaking in Vietnam.
9.0 COMPETITION OF VERVE SOLUTION:
There are three major companies in Vietnam which are besides involve in the same type of concern of manpower supply and proficient support for the industrial services those are Viva blast, Vung Tau Insulation company ( VIC ) and Lilama 18.Viva blast is a good know picture and blaring company, it is working in Vietnam from last five old ages, and they are the Gallic Vietnami company. They have their offices in the Vung Tau industrial area,100 Km North of Ho qi minh, but they are largely involve in the industrial picture Jobs, less experience in the insularity work.Second rival is VIC, which is a British Vietnami companies function in Vietnam from last 7 old ages and specializer in the staging work for adult male power and material supply.Third rival is Lilama 18, which is a vietnami company ; It is working from last 10 old ages in Vietnam, it is one of the divisions of Lilama group major contractors for mechanical and civil plants, its Head office in Hanoi, Vietnam.
Beginning: hypertext transfer protocol: //labspace.open.ac.uk/file.php/1/kmap/1179132179/images/porter [ 1 ] .jpg
Figure: Porter Five Forces
Above analysis based on the Porter Five force, new entryway menace is high due to the low startup cost for this concern and entryway of new rivals can merely go on after the launch of the vitality solution in Vietnam.The bargaining power of the purchaser is low for the vitality solution is supplying a alone supply of skilled labour including all the four types of industrial service, there is a competitory advantages of the furnace lining and fireproofing as there is no rivals for this alone services, besides the vitality solution will supply the best skilled work force ‘s and with most competitory monetary value scheme.
Menace of utility merchandise or service is low due to the extremely skilled technology work, and company will non work complete on quality and run into the mark without the skilled adult male power.The bargaining power of provider is high as there is a really less skilled work force available for this specialised work but verve solution will develop and attest its all worker which is helps to distinguish from its rivals and supply the quality works.
9.1 VERVE SOLUTION CAMPARISION WITH THEIR COMPITITORS:
Skilled work force
Scaffolding, Insulation, Refractory, Fireproofing.InsulationScaffoldingScaffolding
Highly specialized, skilled trained.Unskilled work forceSkilledVietnam Standard
YesNoScaffolding stuff merely.No
Training and Certification
Yes, All preparation and Certified Manpower supplyNoScaffolding CertifiedNo
Offshore certified adult male powers supplyNo Offshore JobsMerely Scaffolding offshore JobsNo offshore Jobs
2 VERVE SOLUTION ANALYSIS:
VERVE SOLUTION STRENGTH
VERVE SOLUTION WEAKNESS
Man power supplies for all four types of industrial services for Insulation, Refractory, Scaffolding, and Fireproofing.Management has a really good experience for the all four type of Industrial services.Previous experience and contacts in Vietnam helps the direction to set up a good skilled adult male power for all the four industrial service plants.Management experience and making accomplishments help them to prepared and manage all sort of state of affairs.
( MBA and Engineering )Past successful running of concern of eating house industry by the direction, helps to manage all local job by the constabulary, certification work done on clip and other concern job ( Management still running successfully its Indian Restaurant “ Tandoori Night ” at the Quang Ngai Province of Vietnam ) .Furnace lining and fireproofing are extremely specialised technology work, adult male power are non easy available.Employee turnover is a major job, assorted subcontractor wage high wage to the skilled worker, which is major job with the worker left the company, and articulation with other companies.Vietnam as a socialist state, there are tonss of hurdle to run the concern by a Expat, direction have to prepared for this and utilize its direction accomplishments to analyse the state of affairs and response consequently.Language is the major job in Vietnam due to which direction demand to be really careful while pass oning with the worker or clients.
In Vietnam every individual Job needs a have a written contract in Vietnami, direction have to be really much careful on the interlingual rendition of the contract with company and with the employees.
9.3 VERVE SOLUTION CRITICAL SUCCESS FACTOR:
Highly specialized skilled adult male power supply, which is a niche market in Vietnam.Working professionally with highest client service.The development of Vietnam and upcoming so many undertaking for Insulation, staging, furnace lining and fire proofing which is 2nd biggest contact value after mechanical contract on any undertaking oil and gas undertaking, Construction Project ( Thermal power works, Cement Plant, Steel Plant etc. )The addition in demand of quality plants and completion of Job on the mark day of the month is the Key to success for Verve Solution.Now large contractors companies engaging subcontractor companies to execute the plants on their behalf with an understanding of supply the adult male power on the hourly footing or ball amount contract value and they control the quality of plants and work flow with proper be aftering to finish the Jobs.Proper understand the demand of the client and supply the best service to them.
Supplying of lower limit to maximum skilled peoples based on the client demands.Insulation and scaffolding offshore adult male power supply which is besides a niche market in Vietnam.
10.0 VERVE SOLUTION PROMOTION AND MARKETING STRATEGY:
Verve Solution selling and publicity program are based on the strategic confederations and communicating run by giving advertizement in all the major Vietnami Newspapers and English New Paper, Besides company will registered his reference item in the xanthous pages and some Local building magazines.
While advertising company will develop a strong strategic confederation with some of the companies, the pull offing manager of the Verve solution has a good relation with some of the insularity chief contractor companies which he works earlier in Vietnam with them, by supplying the best competitory monetary value and best quality service helps to develop a good concern relation with insularity chief contractor company. Once the relation is formed them this will assist to farther enlargement of the contacts besides company will supply each manpower it ain frock on which the item of the company name and reference with contact figure will be printed, which will assist to farther advertizement for the companies. In Vietnam, there are three major international airdromes, Company will lease an advertizement holder to publicize in forepart of the airdrome as major of the company executive travel often, and this will assist to farther concern contacts. Besides, company will utilize little hoardings near the undertaking site, which will assist to advance the advertizement.
0 VERVE SOLUTION Pricing Scheme:
Following are the standard rates for skilled the adult male power supply:
Skilled Manpower Detailss
Fireproofing Mason1.91The above rate is best competitory monetary value based the recent market study for assorted rival monetary value for skilled scaffolder rate hourly rates ranges from US $ 1.5/Hrs to US $ 2.
5/Hrs and the skilled work force available in the market. But company scheme is to develop the semiskilled adult male power and with best skilled and competitory monetary value in the market.Besides pull offing manager experience on undertaking appraisal helps to supply the best stuff monetary value based on the undertaking specification, measure of stuff and the best bringing day of the month.Company will supply the best competitory monetary value for the skilled adult male power for seaward undertakings.The initial monetary value is to retrieve the breakeven point for the concern, After that the company public presentation and the trade name will increased and so the volume of the sale besides increased and the net income besides increases so at that clip monetary value remain sale but we will add some more service like free supply of supervisors along with the certain figure of group of workers.
12.0 VERVE SOLUTION EMPLOYEES DETAILS AND RESPONSIBILITIES:
Pull offing Director:
Sharique AftabLeads the organisation and helps to develop the corporate civilization of the organisation, responsible for the twenty-four hours to twenty-four hours operation of the concern, and prepared the strategic program for the organisation and responsible for investing determination, commanding of budget, pull offing organisation assets and its resources, involved in major determination devising, involved in the determination for the enlisting of their employees, responsible for the pricing schemes, publicity, selling schemes and contract determinations, Besides involved in undertaking planning and undertaking appraisal.
Responsible to publish of company VAT bill, net income and loss statement, readying of monthly hard currency flow, prepared and reexamine the budget, readying of wages for the staff, co-ordinate with the authorities office for the accounting related policies and execution of that, responsible to look into all the disbursals of the company farther acquire blessing from the pull offing manager, responsible for the internal and external audit coordination, responsible for all the accounting disagreements.
Supervisor/Trainer ( Insulation, Scaffolding )
Mohammad NadeemResponsible for all the preparation and maintain of the advancement of the occupation, keeping public presentation of single insularity and scaffolding workers, Besides responsible for the day-to-day, hebdomadal and monthly advancement study and subjecting to the pull offing manager, pass oning and keep the company policies with the workers, and answerability for the insularity, scaffolding stuff and machineries of the organisation, maintain the self-respect and company confidential.
Supervisor/Trainer ( Refractory and Fireproofing )
Nandy Mazumdar:Responsible for all the preparation and maintain of the Job advancement, keeping all the public presentation of single workers, Besides responsible for the day-to-day, hebdomadal and monthly advancement study and subjecting to the pull offing manager, pass oning and keep the company policies with the workers, and answerability for the furnace lining and fireproofing stuff and machineries of the organisation, maintain the self-respect and company confidential, readying for the certification and keeping the record certification issued.
Mr.Le Quoc Vinh:Responsible for the day-to-day update informations input in the computing machine, typing of contracts, and go toing the calls from the client and reassign to assorted peoples, path record of all the missive received and despatch, and managing some local purchase of the office stationary.13.0 FINANCIAL Plan:13.
1 FINANCIAL Aim:Breakeven point in one twelvemonthFirst Year return on investing by USD 45,000Second twelvemonth return on investing by USD 52,000Third twelvemonth return on investing by USD 85,000
13.2 RESOURCE OF Fundss:
Family Cash25,000Entire45,000The pull offing manager has some salvaging in his history which he utilized to get down up the concern, Besides can borrow from his parents the balance money which he can return back within one old ages of clip, by bring forthing the fund from the internal beginning aid to company to salvage clip to set up certification for the bank loan and this besides help the company to be to the full control by the pull offing manager in term of fiscal resources.
13.3 ESTIMATED SALARY DETAILS FOR THE EMPLOYEES:
Pull offing Director100012,000
Supervisor ( Expat ) I90010,800
Supervisor ( Expat ) II90010,800
4 FIXED ASSEST:
13.4.1 MACHINERY AND Equipments:
Machinery for Insulation preparation
Bending MachineRolling MachineGrooving MachineHand tools ( Pliers, Screw Driver, Electric boring machine, etc )100012001050500111
Tools and equipments for Scaffolders Training
Ratchet scaffold ( 19X21 size )Scaffold TubeClamps51233050200
Sub Total 2
Machinery for Office
Table Managing DirectorChair in Managing RoomStaff Table and chairCustomer ChairsComputersOthers ( Racks, booklet, Fax, Telephone, etc )100305020211565602000
Sub Totals 3
G ‘ Entire USD [ 1+2+3 ]
Verve solution office country needed around 1200 sqft, and workshop installations of 1000 sq foot for the preparation of the adult male powers. The rent for the office is USD 600/month and rent for the workshop is USD 350/month. The initial understanding is for the office is for two old ages and workshop understanding for the one twelvemonth ‘s which can be renew before the coating of the contract.
So USD 14,400 for the office rent and the USD 4200 for the workshop rents.
13.4.3 Natural Material:
The company is a service supplier so there is no demand for any natural stuff to keep, so client petition for any material supply, which can be arrange based on the undertaking specification and the client demand.
13.4.4 START UP EXPENSES:
Entire Amount USD
Scaffolding Tools and Material1350
Expenses for the certification1,000
Salary for the staff3,600
Ads and publicities4000
13.4.5 OPERATING Cost:
Entire Amount USD
Self hard currency20,000
Start up disbursals41,820
Net operating Cost
14.0 SALES Prognosis:
( Month )
Unit of measurement Price/Hr
Sale per Month
Old ages 1
Old ages 2
@ 15 % gross revenues increased
Old ages 3
@ 30 % gross revenues increased
15.0 FORECAST INCOME STATEMENT:
Business Income statement from 2011 to 2014 Time period: Three old ages
Less direct ( variable ) costs
Direct wages Workers
Direct Wages ( Staff )
Entire direct costs
Operating net income
Fixed costs ( operating expenses ) :
Net income before involvement and revenue enhancement
Net income before revenue enhancement
Net income after revenue enhancement
16.0 FORECAST CASH FLOW STATEMENT:
Cash Gross saless
Collection signifier debitors
Net hard currency flow
Opening hard currency
Overdraft or short term adoptions
Shutting hard currency
17.0 FINANCIAL HIGHLIGHTS:
Gross Net income
Net Net income:
Gross Net income %
13.37 %13.53 %
Net Net income %
18.0 Monthly CASH FLOW FORECAST:
Entire ( USD )
Entire ( Y )
19.0 FORECAST BALANCE SHEET:
Non Current Assetss
Insulation Tools and machinery
Furnace lining Tools and Machinery
Office and others
Non Current Liabilitiess:
Barrow return back
Entire: Capital + Liabilitiess:
20.0 SENSITVITY ANALYSIS FOR VERVE SOLUTION:
Based on Gross saless:
Let us presume that the gross revenues for the Verve Solution in Year 20XX will be US $ 381,744 for the 80 adult male power supply at mean rate of 1.65 USD/Hrs.
Decrease 15 %
Decrease 10 %
20XX gross revenues
Increase 10 %
324,482343,569381,744419,918If the existent sale lessening by 10 % so the mean work force lessening by 80 to 72 Numberss and so the sale will be ( 72X 1.65X 8X30 X 12 ) US $ 343,569, if the sale lessening by 15 % so the adult male power supply will diminish by 68 Numberss so the sale will be US $ 324,482 now if the sale in the twelvemonth 20XX addition by 10 % so there will requirement for 88 Numberss of peoples and which will increase the entire sale monetary value by US $ 419,918.
Based on Variable cost:
Lashkar-e-taibas us assume that when the sale of 20XX old ages lessening or increase so the variable cost besides addition and lessening, Average variable cost is 1.15USD/Hrs
Decrease 15 %
Decrease 10 %
Increase 10 %
216,321229,046254,496279,945if the existent sale lessening by 10 % so the mean work force lessening by 80 to 72 Numberss and so the variable cost will be ( 72X 1.15X 8X30 X 12 ) US $ 229,046 if the sale lessening by 15 % so the adult male power supply will diminish by 68 Numberss so the sale will be US $ 216,321.now if the sale in the twelvemonth 20XX addition by 10 % so there will requirement for 88 Numberss of peoples and which will increase the entire sale monetary value by US $ 279,945.
Based on fixed cost:
Lashkar-e-taibas us assume that when the sale of 20XX twelvemonth ‘s lessening or increase so the variable cost besides addition and lessening, Average Fixed cost will stay same.
Decrease in gross revenues 15 %
Decrease in Sale 10 %
Addition in Sale 10 %
Wagess to Staff
Based on Net net income before Tax:
The Net Income is calculated by deducting the value of Variable cost, Fixed cost from the entire sale which is explain as below:
Decrease in gross revenues 15 %
Decrease in Sale 10 %
Addition in Sale 10 %
Net Net income Before Tax
Therefore with the above analysis for the Verve solution based on the assorted factor for addition and lessening of sale, variable cost and the fixed cost prognosis that the concern is profitable in the worst state of affairs besides and able to bring forth the net incomes.
hypertext transfer protocol: //www.marketresearch.com/product/display.asp? productid=2785206 ( Accessd on 28th December’2010 )hypertext transfer protocol: //www.indexmundi.com/vietnam/inflation_rate_ ( consumer_prices ) .html ( Accessed on 28th December’2010 )hypertext transfer protocol: //www.lookatvietnam.com/2010/08/vietnam-one-of-top-20-countries-for-internet-users.html ( Accessed on 28th Decmember’2010 )hypertext transfer protocol: //en.wikipedia.org/wiki/Economy_of_Vietnam ( Accessed on 28th December’2010 )hypertext transfer protocol: //www.google.com/publicdata? ds=wb-wdi & A ; met=ny_gnp_pcap_pp_cd & A ; idim=country: GBR & A ; dl=en & A ; hl=en & A ; q=gni+per+capita # met=ny_gnp_pcap_pp_cd & A ; idim=country: GBR: VNM ( Accessed on 28th December’2010 )hypertext transfer protocol: //www.businessenvironment.org/dyn/be/docs/121/Session2.1Paper2.1.1Manh.pdfhypertext transfer protocol: //www.globaltrade.net/international-trade-import-exports/f/business/text/Vietnam/Business-Environment-Doing-Business-in-Vietnam.html ( Accesed on 29th December’2010 )hypertext transfer protocol: //www.globaltrade.net/international-trade-import-exports/f/business/text/Vietnam/Business-Environment-Doing-Business-in-Vietnam.html ( Accessed on 29th December’2010 )hypertext transfer protocol: //www.globalpost.com/dispatch/vietnam/090403/down-and-out-ho-chi-minh-city ( Accessed on 29th December’2010 )hypertext transfer protocol: //www.eng.hochiminhcity.gov.vn/eng/news/default.aspx? cat_id=589 & A ; news_id=38 ( Accessed on 29th Decemeber’2010 )
APPENDIX 1: Expense cost for the Manpower supply
Skilled Manpower Detailss
Basic Monetary value
Unit Basic Price/Hrs
@ 50 %
Unit of measurement Price/Hrs