Financial Plan

Assumptions
In preparing the financial plan there are certain things that needs to be assumed. It is difficult to
predict the future and thus in preparing the plan we have assumed the sales to go up by 15%
every year based on the Industry growth rate which is 600 crore .And this growth is in the
transportation sector. And the reason for increase in sales percentage is due the fact that there is
an increase in GDP of 6.51 which means the standard of living of people living in Bangladesh is
increasing, as a result people will demand more quality transportation shifting to taxi cab rather
than bus and other inferior transportation service. Moreover there is trend of falling in inflation
rate which is 5.53%, which means price is falling as a result people have more money to spend
and afford quality transportation. And although every business try to attain profit in the first year,
it is highly unlikely. We have some flaws and due to the lack of experience and due to the lack of
connections and expertise, we don’t expect any kind of profit in the first year and very little
profit in the second year as well. The third year and onwards is what we expect to be the fruitful
years for the business and so on.
Sales Forecast
  GO MAMA
  Sales assumptions
    2016 2017 2018 2019 2020
             
Sales            
Personal Hiring   14950400 13809775 25409986 29221484 33604706
Cab Sharing   32850000 27619550 31762483 36526855 42005883
Travel Buddy Program   233600 13809775 6352497 7305371 8401177
Total Sales and increase   48034000 55239100 63524965 73053710 84011766
of 15% each year

  GO MAMA
  Non occurring revenue assumptions
    2016 2017 2018 2019 2020
Sponsors   400000 460000 529000 608350 699603

Avg no of 10     Avg Cost for Avg Avg number

trips no of waiting in no of of kilos
trip traffic cabs
Avg no. cabs 80   Personal 4 80 32 20
Hiring
Avg No of 50   Cab Sharing 5 150 40 25
kilos
Avg time 5   Travel 1 20 8 5
 spent on Buddy
traffic Programme

The distribution is somewhat like 40% of the taxi service will go for personal hiring, 50% for cab
sharing, and 10% for travel buddy program.
For Personal hiring the calculation as follow:
365(yearly)*Average number of trip (4)* Average Number of Cabs (32) *(Average Number of
kilos (32)* Cost per km (12)) + Average cost for waiting in Traffic ((80) = 14950400BDT tk.
And the same calculation follows for the other two with their allocation of percentage. Which
adds up to the totals sales from fare is BDT48034000 tk. And the sales is expected to rise by
15% every year as shown in the table.
    GO MAMA
    Expenses
      2016 2017 2018 2019 2020
Gas and oil     642400 642400 642400 642400 642400
Driver's Salary     263250 280800 298350 315900 333450
00 00 00 00 00
Repairs and Maintance and     751000 963000 120300 144300 168300
camera 0 0 00 00 00
Insurance     50000 50000 50000 50000 50000
Garage rental     144000 168000 192000 216000 240000
0 0 0 0 0
Depreciation (20% straight     120000 120000 120000 120000 120000
line) 00 00 00 00 00
Gas Conversion     800000 0 0 0 0
0
Registrations fees     100000 0 0 0 0
00
Administrative Salaries and     180000 240000 300000 360000 420000
Wages 0 0 0 0 0
Office Expenses and     144000 168000 192000 216000 240000
Miscellaneous 0 0 0 0 0
Advertisement and promotions     200000 200000 200000 200000 200000
Rents     720000 960000 120000 144000 168000
0 0 0
App Devolvement fees     80000 80000 80000 80000 80000
Total Expenses     701274 574024 628774 683524 738274
00 00 00 00 00

Calculations
Gas and oil= 365*((8*95) +1000=642400
Driver’s Salary= 130*((15000*12) + (15000+7500)) =26325000
Repairs and Maintenance and Camera=310000+ ((6000*100)*12) = 7510000
Insurance =500*100=50000
Garage rental =120000*12=1440000
Depreciation (20% straight line) = 60000000 *0.2=12000000
Gas Conversion =80000*100=8000000
Registrations fees =100*100000=10000000
The above calculations are for 2016. And the prior year follows the same.

  GO MAMA
  Income Statement
    2016 2017 2018 2019 2020
Revenues from fares   48034000 55239100 63524965 73053710 84011766
Other non-occurring revenue 400000 460000 529000 608350 699603
Total Revenue   48434000 55699100 64053965 73662060 84711369
             
Cost of sales            
Gas and oil   642400 642400 642400 642400 642400
Driver's Salary   26325000 28080000 29835000 31590000 33345000
Repairs and Maintenance and cameras   7510000 9630000 12030000 14430000 16830000
Insurance   50000 50000 50000 50000 50000
Garage rental   1440000 1680000 1920000 2160000 2400000
Depreciation (20% straight line)   12000000 12000000 12000000 12000000 12000000
Gas Conversion   8000000 0 0 0 0
Registration Fees   10000000 0 0 0 0
Total Cost of sales   65967400 52082400 56477400 60872400 65267400
Gross Profit   -17533400 3616700 7576565 12789660 19443969
Expenses            
Administrative Salaries and Wages   1800000 2400000 3000000 3600000 4200000
Office Expenses   1440000 1680000 1920000 2160000 2400000
Advertisement and promotions   200000 200000 200000 200000 200000
Rents   720000 960000 1200000 1440000 1680000
App Development Fees   80000 80000 80000 80000 80000
Total Expenses   4240000 5320000 6400000 7480000 8560000
             
Net Profit   -21773400 -1703300 1176565 5309660 10883969
             
Net Profit after Tax (15%)   ------------   1000080 4513211 9251373
  GO MAMA
  Balance sheet Statement
    2016 2017 2018 2019 2020
Assets            
Current Asset   2600000 300000 340000 380000 8901373
Total Current Assets   2600000 300000 340000 380000 420000
6000000 6000000 6000000
Taxi Cabs   60000000 0 0 0 60000000
Accumulated 2400000 3600000 4800000
Depreciation   12000000 0 0 0 60000000
Mobile Application   350000 350000 350000 350000 350000
3635000 2435000 1235000
Total Long term assets   48350000 0 0 0 350000
3665000 2469000 1273000
Total Assets   50950000 0 0 0 9251373
Owners’ Equity            
Current Liabilities            
Total Current Liabilities            
Long-term Liabilities   0 0 0 0 0
Total Liability            
             
Net Profit   -21773400 -1703300 1000080 4513211 9251373
3494670 2368992
Capital Employed   29176600 0 0 8216789  
3665000 2469000 1273000
Total Equity and Liability   50950000 0 0 0 9251373

  GO MAMA
  Cash Flow Statement
    2016 2017 2018 2019 2020
             
Cash received            
Cash from taxi fare   48034000 55239100 63524965 73053710 84011766
Cash from sponsors   400000 460000 529000 608350 699603
Total cash inflow   48434000 55699100 64053965 73662060 84711369
Cash outflow for
operations   4240000 5320000 6400000 7480000 8560000
Cash outflow for fixed asset   60000000        
Cash Outflow for insurance   50000 50000 50000 50000 50000
Mobile Application   350000        
Gas Conversion   8000000 0 0 0 0
Cameras   310000 0 0 0 0
 Gas and Oil   642400 642400 642400 642400 642400
Registration   10000000 0 0 0 0
Total cash outflow   83592400 6012400 7092400 8172400 9252400
Opening Cash Balance   0 -35158400 14528300 71489865 136979525
Net cash   -35158400 14528300 71489865 136979525 212438493

Breakeven Analysis
1600000000
1400000000 1385290717.31
1200000000
1108232573.85
1000000000
800000000 831174430.39
764280000
600000000 627470000
554116286.93
490660000
400000000 353850000
277058143.46
200000000 217040000
80230000
00
0 500 1000 1500 2000 2500

Total costs Taxi fares

So looking at the income statement we can see that we will have a breakeven after two years.
Which means that our service will reach no profit or no loss when the total cost is 217040000
and our revenue stream is 277058143.5.
Fixed Cost 80230000
Variable Cost 273620
Taxi Fare and Sponsors 554116
   
Unit Increment in X-
axis 500
   
   
   
Breakeven Units 286
Breakeven BDT (tk) 158493184

Ratio Analysis
GO MAMA
Ratio Analysis
201 201
  6 7 2018 2019 2020
 ROI     0.040505 0.354533 1
ROA     0.039257 0.246287 0.749402
ROCE     0.042215 0.549267  
Net Profit to sales     0.015613 0.061269 0.109211
Net Profit to expense     0.156263 0.60337 1.080768

Sensitivity Analysis
It is the duty for every business to always be prepared for the increasing in cost and changes in
business conditions. Since there is rise in GDP growth, sales are expected to increase and people
will use the service paying higher prices so we will have a breakeven more quickly then we have
forecasted. Moreover the inflation rate is decreasing by 5.53%, which will reduce the variable
the cost as inflation rate is associated with the cost of raw material as a result our variable cost
will fall and contribution margin will change and we will reach the breakeven more quickly.
However recent turmoil in Dhaka will likely to fall in aggregate demand in the economy which
might hamper the business overall business environment.

Sources of Fund
The primary and only source of fund will be from the personal savings and personal borrowings of
entrepreneurs, if the borrowing is need in future. And each partner is sufficient to contribute the fund
and it will be contributed on equal basis.
The funds would be initially used to buy the cabs and pay its registration fees. And moreover the
funds would be used to decorate and buy fittings for the office. Salaries and bills will be paid.
Advertising expenses will be covered.