1. SUMMARY OF THE PROJECT
In this business plan, the opening of an enterprise specialized in the production and sale of gypsum garden figures in a city with a population of more than 1 million people is considered. The aim of the project is to satisfy the demand of the local population for quality products of landscape design and profit.
Among the advantages of the project can be called a low threshold for entering the business and low cost of raw materials. To organize production, it will be necessary to master the technology of creating molds (matrices), casting, painting and working off shapes, equip a production and storage room with a total area of 70 sq. meters, purchase the necessary equipment and material.
Starting investments will amount to 228.5 thousand rubles. The financial calculations of this business plan are made for a three-year period of activity. According to them, the payback period of the project will be 5 months. Integrated project performance indicators are presented in Table 1.
Table 1. Integrated performance indicators
Discount rate (r-year), %
Discount rate (r-month), %
Payback period (PP), months
Discount payback period (DPP), months
Net present value (NPV), rub.
Return on Investment (ARR), %
Internal rate of return (IRR), %
Profitability Index (PI)
2. DESCRIPTION OF THE INDUSTRY AND COMPANY
The tradition of decorating garden plots with garden figures appeared in Germany in the 19th century. The experience of the Germans was adopted by gardeners from other countries of the world, including from Russia. The growth in demand for such products in our country is caused by the fact that cottages and suburban areas have become more and more perceived by Russians as a place for recreation than for work in the garden and garden. Today, according to VTsIOM, about 50% of Russians own country houses and summer cottages. At the same time, there is a tendency to increase the number of cottages, the number of which is constantly growing. For the design of the plots, various sculptural forms are used, which are made of gypsum, ceramics, concrete, artificial stone and wood. They are installed in the garden near decorative slides and ponds, in flower beds, near arbors and garden paths. Despite the fact that the market of garden figures offers a wide variety of products that vary in quality, a high level of demand remains for products.
Our project involves the creation of the production of plaster garden figures. Production will be located on a rented area in a city with a population of more than 1 million people. To organize a business, several steps will be implemented. First, IP will be opened, procedures for registration and tax registration will be carried out. Secondly, the technology for the production of molds for the production of products and the products themselves will be mastered. Thirdly, the necessary equipment and materials will be purchased, as well as the hiring and training of employees.
Finished products will be sold at retail through its own online store, as well as to wholesale and small wholesale organizations involved in the sale of goods for the garden, household goods, decor items and other related products. Investments in the project will amount to 228.5 thousand rubles. Start-up cost items are detailed in Table. 2 of this business plan.
Table 2. Investment costs of the project
Set of equipment
Raw material purchase
3. PRODUCT DESCRIPTION
Our company will produce and sell garden figures and sculptures designed to decorate gardens and gardens. The range will be expanded through the production of souvenirs and piggy banks. Unlike most competitors, the company's products will be distinguished by originality and high quality performance. In particular, for the production of figures will be used their own, rather than purchased finished forms. Due to the low cost of raw materials, high margins (234%) will be set for finished products. The list of main groups of goods sold and final prices are presented in Table. 3.
Table 3. Nomenclature and variable costs
COSTS UNITS, rub.
TRADING VALUE, %
UNIT COST, rub .
Figures for the garden (gnomes)
Figures for the garden (birds)
Figures for the garden (animals)
Figures for the garden (mushrooms)
Other (piggy banks, figurines, souvenirs)
As a material for production, sculptural gypsum will be used. The advantages of working with gypsum can be distinguished: its low cost, ease of the technological process during operation (does not require the purchase of expensive equipment), work safety for employees (non-toxic, no protective equipment, hoods, etc. are required). At the same time, the material is fragile enough, in connection with which special attention will be paid to proper storage, reliability of packaging and transportation of finished products.
4. SALES AND MARKETING
The scope of garden figures is quite wide. Products can be used not only for decorating a garden or summer house, but also for decorating baths and saunas, landscaping parks, playgrounds, kindergartens and schools. Often, the figures serve not only for aesthetic, but also for purely practical purposes. For example, they can be used to close hatches or mask other objects that spoil the view. Accordingly, the target audience is quite motley. It includes the owners of private houses located both in the city and outside the city, summer residents and amateur gardeners, owners of baths and saunas, the management of parks and child care facilities and so on.
Finished products will be sold at retail through its own online store, as well as to wholesale and small wholesale organizations involved in the sale of goods for the garden, household goods, decor items and other related products. Thus, the distribution channels of our products will be:
Specialized garden shops or departments in stores;
Shops of living and indoor flowers;
Entrepreneurs-hawkers (trade along the highways);
Parks, cafes, baths;
For retail sales and the presentation of product samples will create its own online store. In the electronic catalog, the client will be able to see prices, choose the product he is interested in, make and pay for the order. To promote services and promote sales, Internet advertising methods on partner sites, links from specialized resources on landscape design, etc. will also be used. The company is also expected to participate in agricultural fairs.
Since this line of business is subject to the seasonality factor, in winter the production will be transferred to the New Year's assortment (souvenir products).
5. PRODUCTION PLAN
The manufacturing process of garden figures involves the implementation of several basic steps. It:
- preparation of the mixture;
filling with a mixture of form (matrix);
solidification of the product (drying);
product processing (impregnation);
If the time for the manufacture and processing of products does not take much time and takes from 5 to 20 minutes, the drying process will require up to 3 days. Thus, the entire production cycle will be 3 days. For the production of figures will be prepared their own set of original forms that are not on the market.
To organize the work, it will be necessary to rent a room for production and a warehouse with a total area of 70 square meters. meters. You will also need to purchase the equipment necessary for production, the list and cost of which are given in Table. four.
Table 4. List of equipment
In addition to the table, you will need to purchase the raw materials necessary for the work (gypsum, paints, varnish, additives for gypsum). For these purposes, 40 thousand rubles will be required.
The target sales volume in the first year of operation will be the mark of 600 thousand rubles, which is planned to be achieved during the period of growing seasonal demand (May-June), in the second year the turnover in the season can be increased to 1 million rubles. The off-season sales plan (September-February) in the first year of operation is set at 100-300 thousand rubles. in the first year, 200-400 thousand in the second year.
6. ORGANIZATIONAL PLAN
The legal form for running this business will be IP. The taxation system is simplified (6% of the income received). The project initiator will be in charge of the project, which will be responsible for organizing the production process, setting shifts, monitoring the work of employees, searching and expanding markets for products. The staff of the company will need to hire three casters and three painters, whose work will be organized in shifts. Payment for their work will be piece-rate and will depend on the amount of work performed. Accounting reporting will be provided by a third party.
Table 5. Staffing and payroll
Number of people
12% of revenue
12% of revenue
10% of revenue
10% of revenue
22% of revenue
+ 22 000
7. FINANCIAL PLAN
Investments in the project will amount to 228.5 thousand rubles. Start-up cost items are set out in Table. 2 of this business plan. The fixed costs of production will include rental, bookkeeping, advertising (for more details, see Table 6). The variable part will include staff remuneration, the purchase of raw materials and tools, delivery, tax deductions. A detailed financial plan with indicators of revenue, net profit and operating expenses is given in Appendix 1. Calculations are made taking into account indicators of seasonality of demand, with the highest rates from March to August and the low season in September - February.
Table 6. Fixed costs of the enterprise
Amount in months, rub .
8. EVALUATION OF EFFICIENCY
The project for the production and sale of garden figures made of gypsum can be called investment attractive, which is confirmed by the integrated performance indicators presented in Table. 1. It is expected that the project will return to payback and will begin to make a profit by the 5th month of work. The effectiveness of the chosen direction is evidenced by the net present value (NPV) indicator, which in our case is positive (260, 758), the profitability index (PI) exceeding 1 (1.14), as well as the internal rate of return (IRR), which is greater discount rates (25.83> 15).
9. RISKS AND WARRANTIES
The main risks of the business for the production and sale of garden figures are analyzed in Table. 7
Table 7. Possible risks and ways to prevent them or their consequences
Probability of occurrence
Severity of consequences
Getting low-quality products
Preliminary development of production technology and compliance with all necessary technological processes, purchase of high-quality raw materials
Low production profitability
Competent pricing, competent marketing policy, work on expanding the sales market
The emergence of new competitors
Production of original products by our own molds, the search for regular customers at the initial stage
Transfer of production to the winter assortment (New Year's souvenirs, sculptures, piggy banks)
Three-year production plan and key financial indicators
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