Business Plan
Production of Cotton Buds
Haris Kvgic & Edvin Sinanovic
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Business Plan
Contents...
• General Introduction
- Developing business idea
• Plan implementation
- Organizing production
• Financial analysis
- Overview of the cost and profit
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Business Plan
General Introduction
•
•
•
•
•
Developing the idea (come with a product)
Interacting with people (additional survey)
Visiting supermarkets
Lack of domestic products
Manufacturing (generally)
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Picture from the supermarket
(Corpus delicti)
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ekupi.ba
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Goals and Vision
• Start production (facility and equipment)
• Quality products (respecting legal procedures,
certificates)
• Create positive atmosphere (non-technical part –
everyone doing obligations)
• Become leading distributer in the country
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Plan Implementation
•
•
•
•
Internet research about machines
Automatic machine (easy to operate)
Processes going parallel (production and packing)
≈ € 31 130 (alibaba global trade)
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Additional possibilities…
• Straws
• Lollypop sticks
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BN-C1 specifications
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Market Analysis
• 4.88% of surveyed people are satisfied with
amount of domestic products in supermarkets;
51.22% are partially satisfied, and 43.9% are not
satisfied
• Most of examinees prefer domestic products
(over 80%).
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Usage of Cotton Buds
How often do customers use cotton buds?
every day
3 times per
week
Once a
week
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Financial Aspect
• Start up company
• Initial Capital of EUR 100,000
• Please see additional slides
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Financial Investment
item
Cost (€)
additional info
Machine BN-C1
33131.38
From the suppliers webpage
Transportation
4026.42
Supplier’s information
Air compressor
945.89
Pik.ba
Facility
32700.00
Average cost of making a facility
20x15x5m (by FTA doo)
Heating, electrical, water and aero 10011.10
installations
Average prices
Cost of starting the business
1022.58
State taxes for starting a business
Conceptual project (“Idejni projekat”)
920.33
Evaluation of the facility by the
professionals
Needed permissions and connections
5982.12
Telephone,
electricity,
connections + permissions
Ground parcel
6749.05
300m2 (facility) + 300m2 (place
around the facility)
Office equipment
3579.04
Basic necessities (computer,
chair…)
Material
15069.23
Cotton, plastics,
information)*
total
= 114 164.13 €
glue
water
desk,
(supplier’s
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Operational Costs
Item
Cost (€)
Description
Electricity bill
183.90
4.4 kWh * electricity price
Elektroprivreda BiH)
Wages
1227.10
3 average wages
Taxes on wages (“doprinosi”)
811.97
Taxes imposed by Law
Meal allowances (“topli obrok”)
322.11
Imposed By Law
Transport
81.30
Imposed by Law
Heating
306.21
Average (by “Toplane Sarajevo”)
Utilities
174.80
Averages
water)
Telephone + Internet
87.40
Average
Office
equipment
necessities)
(monthly 51.13
(garbage
(JP
container
+
Rough estimation (paper, pens, …)
Administrative expenses
204.52
Accountant + additional
Maintenance
204.52
-
Total:
3654.96 €
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SWOT
• S (strengths): domestic product, no need for
transport, lower prices of labor force, electricity,..
• W (weaknesses): new brand, no experience, no
marketing
• O (opportunities): first domestic product, utilizing
Federal government support programs for startups
• T (threats): campaign against using cotton buds
(“unhealthy”!?), market stability of competitors
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Profit Estimate
Investment
2016
2017
2018
2019
2020
expenditures
90870.23
99957.26
109952.98
120948.28
133043.11
Revenues (0.28
€)
125498.92
138048.81
151853.69
167039.06
183742.96
Profit
(NETO
cash flow)
34628.68
38091.55
41900.71
46090.77
50699.86
-79535.45
-41443.90
456.81
46547.58
97247.44
Breakeven
-114164.13
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The end
• Thank you for your attention!
• Full business plan is available upon request
Haris Kvgic
harrykvgic@yahoo.com
+387 062 422 419
Edvin Sinanovic
edvins@live.com
+387 062 985 254
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