SMALL BUSINESS

MANAGEMENT.
TITLE :-BOTTLED GEE
PROCESSING. BUSINESS
PLAN.
SUBJECT CODE :-
DEPARTMENT :-
GROUP MEMBERS :-
(1) A.SARANYA EU/IS/2007/MS/31.
(2) N.ANOJKUMARA EU/IS/2007/MS/62.
(3) S.SHIVAKUMAR EU/IS/2007/MS/09.
(4) T.HEMATHARSHAN EU/IS/2007/MS/86.
(5) S.SHARMILA EU/IS/2007/COM/34.

FACULTY OF COMMERCE AND

MANAGEMENT.
1
 EASTERN UNIVERSITY, SRILANKA.

BUSINESS PLAN

“SHARMI – GEE PRODUCTION”

Miss. S. SHARMILA.
MURUGAN TEMPLE ROAD,
AALADIVEMBU, AKKARAIPATTRU.

2
 (1) EXECUTIVE SUMMARY

Name of business: - “Gowsha Gee Production”

Type of business
 Manufacturer Service Operator Retailer Wholesaler

Products or Services: Bottled Gee Production.

Targeted customers: People who are living in Akkaripattru, Kalmunai, Thirukovill

and all over the Batticallo district and its surrounded area

Owner/s of the business and his/her/their qualifications and business

experience:
Owner of the business: - Miss. S. Sharmila
Qualifications & Experience: - For this business no need any special qualification.
Anyone who have interested in this field can do this
business. My husband has more than 5 years experience
in this field. I’m also having experience about 2 years.

Number of staffs: Four People (06)

(Owner, & other 5 workers.)

Required start-up capital Rs: 300,000

Source of start-up capital. Amount Rs.
1. Own Money 150,000
2. Bank Loan 100,000
3. Relations & Friends 50,000
300,000

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2) MARKETING PLAN

2.1) MARKET RESEARCH

1 2 3 4
Products or Customers Needs & preferences of Competitors
services customers

 Retailers prefer different

Individuals those who are
size of bottled gee. producing ‘Gee” in our area.
I. Individuals
 Good quality of gee.
 Continuous supply.  Viji Gee Production :-
 Flexible Price.
Ä Higher Price.
 Some of the whole sellers Ä Not providing Home
1) Bottled
Gee prefer good quality delivery service
Product. II. Retailer Shops
product. Ä Not giving continuous
 Flexible Price. service (shops are not
 Availability open most of the day)

 Some of the whole sellers

III. Wholesalers. prefer good quality
product.
 Flexible Price.

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2) MARKETING PLAN

2.2) PRODUCT.

Product, service or
Range of Products/ Services
1. BOTTLED GEE PRODUCT.

Quality Higher quality product and made it with Hygienic.

Colour Light Yellow.

Different size of Bottles

Size
(Small – 250ml, Medium – 500 ml, Large -750 ml)

Putting label in the Bottle

Packaging
(“SHARMI Gee Production)

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2) MARKETING PLAN
2.3) PRICE (For manufacturers and service operators)

Product or services
Details.
1. BOTTLED GEE PRODUCT.

Cost 300Rs. – 350Rs. per product.(750 ml)

375Rs. – 450Rs. per product. (750 ml) by Individuals.
How much customers are willing to pay?
400Rs. – 500Rs. per product. (750 ml) by Retailers and
Wholesalers.
Competitor’s price 400Rs. – 500Rs. per product.(750 ml)

My price 370Rs. – 550Rs. per product.(750 ml)

 Relationship with the customers.
 Cost – Cost of production is considerably low.
Reasons for setting this price
 Profit – Certain level of Profit.
 Competitor’s price.
 Regular customers.
 Known peoples.
Discount will be given to the following
customers or type of customers  Relations and Friends.
 Shops.
 People, who know very well, would like to reduce
price.
Reason for giving discounts
 To increase sales.
 To maintain a good relationship with the customers.
 Individuals.
Credit will be given to the following customers  Retailers. and
or type of customers
 Wholesalers.
 When People ask, giving credit sale opportunity.
Reason for giving credit  Allow Credit sale to the regular customer is safety.
 It is a motivation to again and again purchase.

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2) MARKETING PLAN
2.4) PLACE

Ä Location
Describe the planned location of the business:
Miss. S. Sharmila,
Murugan temple Road,
Aaladivembu, Akkaraipattru.

This location is chosen for the following reason:

The main reason for selecting this place for business is, a Milk farm is near to
my home. So it is an opportunity to get milk for gee production is very easy.
Cost reduction, easy to get, carrying is easy and continuous milk supply is
possible.

My house is near to the main road, and I’m using a part of my house as a
shop. A lot of shops are near to my shop. People who are coming for other
purchase, it is a chance to visit my shop. There is a school also in near to my
home, so people who are teaching in there, possible to purchase my product.

Ä Method of distribution

The business will distribute the products to:

 Individuals Wholesalers Retailers Others

By way of:
Direct Distribution : - For Individuals, Wholesalers, and Retailers.

This way of distribution is chosen for the following reasons:

Individuals come to our place and they immediately buy the product. Some
time if they are in near to our place we will make delivery to their home.

To the wholesaler and retailer we are providing delivery service if they need.
Through a person, we are providing this service.

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2) MARKETING PLAN

2.5) PROMOTION

TYPE OF
DETAILS COST
ADVERTISING
Name of the shop is written in a small board as
Name Board in the
01) “Gowsha Gee Production” and it is hanged in 500
Building.
front of my shop.

Through the people’s mouth we informed that

02) Talking -
we are selling the gee production.

Prices of the product is displayed at the window

03) Price List -
of my shop.

Label in the product is also helps to customers.

Label contain
04) Labels Ä Name of the Shop. 500
Ä Address.
Ä Telephone Number.

TYPE OF SALES
DETAILS COST
PROMOTION
01) Free Delivery. To Shops which are in near to our area. 600.00
Discount is given to:-

 Regular customers.
02) Providing Discount  Known peoples. -
 Relations and Friends.
 Shops.

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3) FORM OF BUSINESS

The business will operate as a : Sole Proprietorship.

The reason for choosing this form of business is:

Ä Easy to start the business.

Ä Small amount of capital is enough.
Ä More freedom.
Ä No need to share the profit with others
Ä Own decision making.
Ä Low Cost.

The owner will be

Name :- Miss. S. Sharmila.

Description of skills :-

 There is no need of special skills requirements.

 Competition is high so better customer relationship is
important.

Relevant Experience. :-

 If the staffs have experienced in this field it is better to do

this work well, and if the employee have the experience it
leads to increase our output.

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 4) Staff
NO OF SKILLS AND HIS/HER TOTAL
TASK WORKERS EXPERIENCE RESPONSIBILITY MONTHLY
REQUIRED NEEDED WILL BE SALARY RS:
 Experience is
 Concentrate on
Milk Boiling. 2 – Workers. important, or 8,000 Rs.
work.
 Good skill in boiling.
 If they have  Hard working,
Gee Processing 2 – Workers. 14,000 Rs.
Experience it is better. long time work.
 Active  Long time work.
person(Working  Do the work
Bottling 1 – Worker. Quickly ), quickly. 2,750 Rs.
 Patient also needed.  Reduce the
(Reduce the wastage) wastage.
 Clean every day
Cleaning 1 – Worker. - after finishing the 500 Rs.
work.
 Check the
1 – Worker.  Can able to identify
Milk Collecting condition of the 500 Rs.
the quality of the milk.
milk.
1 – Worker.  Deliver at the
Delivery.  Deliver on time. 600Rs
correct time.

Total salary 26,350 Rs.

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5) LEGAL RESPONSIBILITIES AND
INSURANCE

The following taxes apply to the business: - Nil

The following regulations apply to the employees: - Nil

The Business will need the following licenses and permits: - Nil

The business will have the following insurance: - Nil

(I’m not registered my shop, so Tax payment, Employee laws, Licenses, Permits, and
Insurance are need not. I don’t have knowledge in these formal activities and also my shop is
small so there was not need arise for these activities)

Other responsibilities of the business: -

Even though I’m not registered my shop, I have some responsibility. There are

Ä To fulfill the society’s needed.

Ä Utilizing available resource in the environment.
Ä Producing good quality product with healthy method.
Ä Paying reasonable amount to the employees.

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 6) LOBOUR COSTS FROM
DIRECT LABOUR INDIRECT LABOUR
COSTS COST
1 2 3 4 5 6 7

production per
Employees

Total working hours

Hours in production

Hours not in

Pay for time not in

Total monthly pay

Pay for time in

production

production
per month

per month

month
S. Sharmila
Gee Processing 160 hrs. 8,000 Rs. 160 hrs 8,000 Rs. - -

S.Suba Gee
140 hrs. 6,000 Rs.
Processing 160 hrs. 8,000 Rs. - -
Milk Boiling. 20 hrs 2,000 Rs.
K. Manjula.
Milk Boiling 160 hrs. 6,000 Rs. 160 hrs 6,000 Rs

K. Uthaya.
(Bottling & Cleaning) 70 hrs. 2,750 Rs. 70 hrs. 2,750 Rs. 20 hrs 500 Rs.

A. Aasaithamby. - - - - 10 hrs. 500 Rs.

(Milk Collecting)
R. Nimalan.
- - - - 10 hrs. 600 Rs.
(Delivery)

Total 24,750 Rs. 40 hrs 1,600 Rs.

550 hrs.

FOR MANUFACTURERS AND SERVICE OPERATORS

Total pay for time in production.

Total hours in production per month 24,750 DIRECT LABOUR

550 COST PER HOUR

= 45 Rs.

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 7) INDIRECT COSTS FORM

INDIRECT COSTS PER MONTH

COST ITEM Rs:

Fire wood 600 Rs.

Bottle 2,000 Rs.

Kerosene 200

Indirect labour 1,600 Rs.

Bank interest 1,500 Rs.

Pre operative expenses (Name board, Labels, & Registration) 2,000 Rs.

TOTAL INDIRECT COSTS PER MONTH 7,900 Rs.

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8) PRODUCT COSTING FORM
FOR MANUFACTURES AND SERVICE OPERATORS

PRODUCT:

1) DIRECT MATERIAL COST PER ITEM

1 2 3 4
Buying Cost * Quantity Per Item
Raw Material = Cost Per Item
Milk 8 Rs. 30 Bottles 240 Rs.
Total = 240 Rs.

2) DIRECT LABOUR COSTS PER ITEM

ACTIVITY TIME PER ITEM

(MAN HOURS)
Boiling the milk 40 minutes.
Gee processing 1 Hour
Total 1 Hr & 40 min X 45 Rs. = 75

3) INDIRECT COSTS PERITEM.

INDIRECT COSTS PER HOUR = 15 Rs. INDIRECT COSTS

PERITEM = 25 Rs.
TOTAL INDIRECT COSTS PER MONTH
(From Indirect Costs Form) 7,900 1 hr 40min X 15 Rs. = 25 Rs.
TOTAL IN PRODUCTION PER MONTH 550
(From Column 4 of labour cost form)

4) TOTAL COSTS PER ITEM

Costs Cost per Item.

1) Direct Material 240 Rs.
2) Direct Labour 75 Rs.
3) Indirect Costs 25 Rs.
Total Cost Per Item 340 Rs.

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 costs
Sales

Direct

Net profit
DETAILS

Gross profit

Indirect costs
Direct labour
material costs
2500 8000 10500 24000 48000 82500 Jan

7500 8000 15500 24000 48000 87500 Feb

18000 8000 26000 24000 50000 100000 Mar

18000 8000 26000 24000 50000 100000 April

10) CASH FLOW PLAN

12000 10000 22000 24000 54000 100000 May

15
24500 10000 34500 24000 54000 112500 Jun
9) SALES AND COSTS PLAN

24500 10000 34500 24000 54000 112500 Jul

20500 10000 30500 28000 54000 112500 Aug

20500 10000 30500 28000 54000 112500 Sep

22000 10000 32000 28000 66000 126000 Oct

22000 10000 32000 28000 66000 126000 Nov

22000 10000 32000 28000 66000 126000 Dec

214000 112000 326000 308000 664000 1298000

 Pre-operative

(Rs)February
(Rs)January

(Rs)March
period

(Rs)April

(Rs)June
(Rs)May
DETAILS

1.Cash at the start of the

240500 231000 226500 236000 244500 249000
month

2.Owner’s investment 150000 - - - - - -

CASH IN

3.Bank loan 100000 - - - - - -

4.Cash in from sales - 75000 70000 90000 87000 95000 100000

5.cash in from credit
- 5000 15000 12000 15000 6000 10000
sales
6.Any other cash in 50000 - - - - - -
7. Total cash in 300000 320500 316000 328500 338000 345500 359000
8.investments on
- - - - - - -
building
9.mechinery and
7500 - - - - - -
equipments
10.Other fixed assets - - - - - - -
11.Cash out for direct
- 48000 48000 50000 50000 54000 54000
CASH OUT

material costs
12.Cash for direct
- 24000 24000 24000 24000 24000 24000
labour costs
13.Cash out for
8000 8000 8000 8000 10000 10000
indirect costs
14.Pre operative
2000 - - - - - -
expenses
15.loan repayment 8000 8000 9000 10000 7000 8000

16.Any other cash out 50000 1500 1500 1500 1500 1500 1500

17.TOTAL CASH
59500 89500 89500 92500 93500 96500 97500
OUT
18.Cash at the end of
240500 231000 226500 236000 244500 249000 261500
the month

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11) REQUIRED STARTED CAPITAL

Details. Rs. Rs.

Construction or
-
purchases of building
Conversion or
Business premises. reconstruction of 10,000
business premises
Sub Total 10,000
Utensil 6,000
Pan 1,000
Machinery and Rack 500
Equipment
Sub Total 7,500
Name Board 500
Label 500
Pre-operative
Expenses. Registration Fee 1000
Sub Total 2,000
Stock of raw material
and finished goods 200,000

Wages
28,000

Working Capital. Other costs (Bottle

cost, fire wood, 2,500
Transport
Advanced payment to
50,000
Milk Supplier.
Sub Total 280,500

Grand Total. 300,000

12) SOURCES OF STARTED- UP CAPITAL

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Required started up capital Rs 300,000

Sources of startup capital

Owners’ equity Rs 150,000

Bank loan Rs 100,000

Other Sources Rs 50,000

Total Rs 300,000

Collateral (if applying a loan)

 I collateral my own house for loan purpose at Bank of Ceylon , Akkaraipattu Branch.

Financial Ratios:
1. Return on investment: = Annual Net profit X 100%
Total Investment
= 214,000 X 100%
300,000
= 71.33%

Net profit to Sales: = Annual Net Profit X 100%

Annual Sales
= 214,000 X 100%
1,298,000
= 16.48%

Debt service coverage Ratio: = Profit before interest & loan installment
Annual loan installment & interest.
= 232000
118000
= 1.966

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13) ACTION PLAN

ACTION CONTACT WHEN

 Customers
 Before starting the
 Suppliers
1. Product business and Running
 People those who are
the business.
producing Gee.
 Competitors.  Start of the business
2. Price
 Customers  Running the business.

 Ask from friends, Suppliers  When we decide to

3. Place
and customers. produce our product.
 Inform to Friends,
 Before start the business
4. Promotion Neighbors, Relations and
 After star the business.
Customers.
 Family members, Friends,  Think about the
5. Form of business
and others. business idea

 People those who are  Before start the

6. Staff
producing Gee. business.

7. Legal responsibilities  When we Preparing the

 Competitors firm
and insurance business plan
 Competitors, Business
 Before, and After Start
8. Costing people, Knowledgeable
the business.
persons
 When prepare the
9. Financial Planning  Financial accountants business plan, when
suffer from the loss
 Competitors, Banks,
 Before start the
10. Required startup capital Relations, Friends and
business.
others.

19