business model report on shoe king

8/10/2019 Business Model Report on Shoe King

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Shoe KingWhere Technology Meets Comfort

Ranchi, Jharkhand

2014

IILM

Shoe King Private Lidmit

8/22/2014


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: Coursework:

Group Project on

Entrepreneurship

Shoe King Private Limited

Submitted To: Ms.Shivani Teckchandany Submitted by: Anubhav Mishra

Mayank Kastiya

Prateek Sharma

Priya Yadav

Shrinath Athreya


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CONTENT

1.Company Profile

2.Mission of the Company

3.Vision of the Company

4.Executive Summary

5.Human Resource Policy

6.Financial Analysis

7.Idea Generation

8.Operations: -

a)Supply Chain

b)Product Generation

9.Marketting Mix & Strategies

10.Future Plans

11.Exit Strategy


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Mission

To provide multi utility shoes considering the lifestyle and

technology in todays world.

Vision

Our vision is to be planets most customer centric company,

where innovation, technology and customer lifestyle are our

prime aim.


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EXECUTIVE SUMMARY

The purpose of this business plan is to raise 95,00,000 for the

development of a shoe store while showcasing the expected financials

and operations over the next five years.Shoe King Inc. (the Company)is a Ranchi based corporation that will provide a number of different

mid and high end shoes to customers in its targeted market. The

Company was founded by a group of individulas in Anubav,

Prateek,Shrinath,Mayank and Priya in the year 2014

OBJECTIVES

To Provide customized walking Experience to the people acrossdifferent age groups.

To tap the rural marjet where people have noe started looking towardstechnology aspects.

To provide comfort while walking.

To be the market leader for the product.

To help customers in developing their Multi taskig skills.

To provide ease of walking and mobile charging experience for thecustomers who are in dire need of it.


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ORGANIZATIONAL HEIRARCHY

Our Organization is structured in a way that a team of ten people from

different walks of life will report directly to the promoters of the

company wherein these promoters will also act as managers in theorganisation.

ENTREPRENEURIAL TEAM

The promoters will comprise the core of the entrepreurial team. Each ofthem will be incharge of one Division in the organization. They will

handle the day to day workings of Shoe King Private Limited. They areas follows: -

Promoters

HumanResourceManager

FinanceManager

MarketingManger

OperationsManager


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Mr.Shrinath Athreya & Ms.Priya Yadav: -They will be responsible for handling the finance division of this

start up. They will be leading a team of two people who will report

to them on financial matters and expertise.

Mr.Anubav Mishra: -He will be responsible for handling the Marketing and sales

division of this start up. He will be leading a team of four people

who will report to him on daily basis.

Mr.Prateek Sharma & Mr.Mayank Kastiya: -

They will be responsible for handling the IT and operations division

of this start up. They will be leading a team of four people who willreport to them on daily basis.

COMPANY PROFILE

Company

Name

Shoe King Private Limited

Promoters Mr.Anubhav,Mr.Prateek,Mr.Shrinath,Mr.Mayank

& Ms.Priya

Contribution Mr.Anubhav,Mr.Prateek,Mr.Shrinath,Mr.Mayank-

Rs.20,00,000 & Ms.Priya-Rs.5,00,000

Angel Investor Rs.10,00,000

Started 2014Headquarters Ranchi,Jharkhand

Branches Delhi,Mumbai,Chennai,kolkatta

IPO Not Yet

Product Customised Shoe


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Enviromental Analysis

Thus, we will also emphasise on the various micro and macroenviroment factors affecting the organisation.

Micro Enviroment Macro Enviroment

Companys Internal

Suppliers

Marketing Intermediaries Customers

Competitors.

Publics

Demographic

Economic

Natural Technological

Political.

Cultural

First moveradvantage.

Multi taskingproduct.

Strengths

Creating instantawareness.

Weakness

Introducing newtrends.

Opportunity

Entry of newentrants.

Technology Barriers.

Threats


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Micro Enviroment

Companys Internal Environment- functional areas such as topmanagement, finance, and manufacturing, etc.

Suppliers - provide the resources needed to produce goods andservices and are an important link in the value delivery system.

Marketing Intermediaries - help the company to promote, sell, anddistribute its goods to final buyers.

Customers - five types of markets that purchase a companysgoods and services i.e. Consumer Markets, Reseller Markets,

Business Markets, Government Markets and Internationsal

Markets.

Competitors - those who serve a target market with similar

products and services against whom a company must gain strategic

advantage.

Publics - any group that perceives itself having an interest in acompanys ability to achieve its objectives.

Macro Enviroment

Demographic - studies populations in terms of age, gender, race,occupation, location and other statistics.

Economic - factors that affect consumer purchasing power andspending patterns such as change in income, changing consumer

spending patterns etc.

Natural - natural resources needed as inputs by marketers or thatare affected by marketing activities.such as shortage of raw

materials etc.

Technological - forces that create new technologies, creating newproduct and market opportunities.

Political - laws, agencies and groups that influence and limitorganizations and individuals in a given society.

Cultural - institutions and other forces that affect a societys basicvalues, perceptions, preferences, and behaviors.


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SEGMENTATION

We will initiate by adopting a common marketingstrategy that involves dividing a broadtarget market into subsetsofconsumers on the basis of different criteria that may relate to

either their interest or the geographical regions they belong to,and then will design and implement strategies to target them.

ProductLaunch

Segmentation Targeting Positioning

Age Based

Income Based

Gender Based

DEMOGRAPHIC

Metro Cities

Urban Areas

Rural Areas

GEOGRAPHIC

Lifestyle

Opinions, interests and hobbies

Degree of loyalty

Occasions

Benefits sought

Usage

PSYCHOGRAPHIC
http://en.wikipedia.org/wiki/Marketing_strategyhttp://en.wikipedia.org/wiki/Marketing_strategyhttp://en.wikipedia.org/wiki/Target_markethttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Target_markethttp://en.wikipedia.org/wiki/Marketing_strategyhttp://en.wikipedia.org/wiki/Marketing_strategy


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TARGETING

Targetingis the second stage of

the SEGMENT "Target" POSITION (STP) process. After the market

has been separated into its segments, we will select a segment or series

of segments and target it/them. Resources and effort will be targeted at

the segment.

The first is the single segment with a single product. In other word, the

marketer targets a single product offering at a single segment in a market

with many segments. For example, British Airways Concorde is a high

value product aimed specifically at business people and tourists willing

to pay more for speed.


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Secondly the marketer could ignore the differences in the segments, and

choose to aim a single product at all segments i.e. the whole market.

This is typical in mass marketing or where differentiation is less

important than cost.

Finally there is a multi-segment approach. Here a marketer will target a

variety of different segments with a series of differentiated products.

This is typical in the motor industry. Here there are a variety of products

such as diesel, four-wheel-drive, sports saloons, and so on.

Now have a look at the final stage, positioning.

POSITIONING

Product

Price

Place

Promotion


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Shoe King is aimed to be one of the pioneers in marketing and the

marketing mix of it is one of the strongest. Depending mainly on pull

strategy, we will mainly focus on establishing its hold in face of majorcompetitors like adidas and Shoe King initiating with the small brands

1. Product

Shoe King generally offers portable electromagnetic chargeable shoes

with a wide range of features and all of which are aimed to be on its top-

selling product categories. The various features its shows are mobile

charging, shoes come slippers as it will be containing microprocessor

chips which is programmed by Intel engineers. It contained a

transforming button whose single pressing to transform the shoe into a

relaxing slipper.

We may also emphasize in heading gear under the brand name Comfort

Specialties, through Shoe King Team manufactures and distributes iceskates, skate blades, in-roller skates.

Product Categories: -

A) Leather Shoes

B) Non-Leather Shoes

C) Plastic Shoes (Available during winter season)

D) Shock Proof Shoes.

S.No. Name UrbanMarket

RuralMarket

TopClass

MiddleClass

LowerClass

1 Leather Shoes 7000 3000 1500

2 Non-Leather

Shoes

5000 2000 1000


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3 Plastic Shoes 3000 1500 1000

4 Shock Proof Shoes 5000 3500 1500

2. Price:

Shoe Kings pricing is designed to be competitive to the other fashion

Shoe retailer and also depending upon the features it have. The pricing is

based on the basis of premium segment as target customers. Shoe King

as a brand commands high premiums. Shoe King pricing strategy makes

use of vertical integration in pricing wherein they own participants atdiffering channel levels or take part in more than one channel level

operations. This can control costs and influence product pricing.

3. Place:

Shoe King shoes are carried by multi-brand stores and the exclusive.

Shoe King has stores in metropolitan Cities of Delhi, Chennai, and

Kolkata Mumbai. Shoe King sells its product to about 2000 r retail

accounts in the Metropolitan Cities. In the national markets, Shoe Kingsells its products through independent distributors, licensees and

subsidiaries. The company has production facilities in India and

customer service and other operational units worldwide operational fromthe year 2018.

4. Promotion:

Promotion is largely dependent on finding accessible store locations. It

also avails of emphasizing on Integrated Marketing Communication forvarious promotional activities.


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AdvertisingTargeting ads in various newspaper such as brand equity etc and

will create strategic alliances. Thus, we will be emphasizing a part

part of Digital Marketing.

Sales PromotionsGo online with shoeking.com offering at a discounted rates and

free home delivery. We will provide cash on delivery to every

purchase beyond Rs.1000.

Indirect MarketingWe may also initiate in indirect marketing of Shoe King by

emphasizing on co-branding. For eg:- emphasizing our product

while targeting upcoming movies and most watched tv shows like

comedy nights with kapil.

IntegratedMarketing

Communication

Advertising

SalesPromotion

IndirectMarketing

PersonalSelling

PublicRelations


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Personal SellingWe may also think of focusing on door to door selling but it will be

the last option to be preferred.

Public RelationsWe can also collaborate with various media platforms i.e. Print,

Broadcast for product launch and various conferences.

We can also sponsor events such as Hoop It Up and The Golden West

Invitational. Shoe Kings brand images, the Shoe King name and the

trademark swoosh; make it one of the most recognizable brands in theworld. Shoe Kings brand power is one reason for its high revenues.

Shoe Kings quality products, loyal customer base and its great

marketing techniques all contribute to make the shoe empire a huge

success.

Former Indian soccer team captain Baichung Bhatia is the new brand

ambassador of Shoe King.


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HR POLICY

1. CONDITIONS OF EMPLOYMENT POLICY

1.1 Contract of Employment

A Contract of Employment stipulating all the conditions of employment

shall be signed by all employees on the first day of employment.

1.2 Working Hours

The workweek comprises a minimum of 48 hours, beginning Monday

and ending Saturday of each week.

The official working hours are from 8:00am to 4:30pm with half an hour

brakes lunch between 12:30 pm to 01:00pm. Each employee is required

to put in at least eight hours per day. However the nature of work may

require some variation and extension of these times.

1.3 Duty Station

Duty station shall be stated in the letter of appointment and any transfer

to other field office shall be communicated in writing. The workstation

for each member of staff shall be specified in the letter of appointment.

Employees will however be required to report to the SHOE KING Head

Office before proceeding to their place of posting.

1.4

CLASSIF ICATION OF EMPLOYEES

The employees shall be classified as under:--

a. Permanent: Permanent employee is an employee who hasbeen engaged in a vacancy on the regular establishment of the

institute and who has satisfactorily completed his probationary


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period of service and whose employment in permanent services

has been confirmed in writing.

b.Probationer: Probationer is an employee who isprovisionally employed with a view to being considered for

appointment on permanent basis on rolls of the institute.c. Casual: Casual employee is an employee who has been

engaged on a casual basis or for specific work, which is of an

essentially casual nature and likely to be completed within a

stipulated time.

d.Trainee: Trainee is a learner who is paid a stipend / payduring the period of his apprenticeship / training. All trainees

will be governed by the terms and conditions of employment

mentioned in their appointment letter and or any special rules ororders framed by the institute from time to time.

2. RECRUITMENT AND SELECTION POLICY

2.1 Introduction

Recruitment and Selection aim to search and hire suitable candidate to

fill vacancies in SHOE KING with the view to satisfying humanresources needs. The search may be internal and/or external.

Any position within SHOE KING that becomes vacant will be filled, on

completion of a Requisition Formby the HOD. Restructured on newly

created positions will only be activated upon approval/ sanction from the

management.

The success and adaptability of an institute depends upon the

recruitment of employees who are flexible, adaptable and committed to

the success of the SHOE KING.


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2.2 Objectives

This section aims to promote and maintain high standards of

professional recruitment practice by encouraging recruiters to adhere to

best practices.

Its purposes are to:

a) Ensure that recruitment is considered an essential part of the human

resource

b) Strategy and consequently an integral part of the overall businessstrategy;

c) Ensure and explain best practice for all types of recruitment;

d) Maintain professional standards whether recruits are easy to find;

e) Ensure that equality of opportunity is considered an integral part of

good

Recruitment practices and procedure;

2.3 Recruitment Authorization Procedure

Authorization

All authorization procedure detailed below must be completed prior to

the commencement on any recruitment procedure.

A) Prior to the employment of any employee the Employment

Authorization Form

Must be completed.


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B). Vacancies related Requisition Form dully completed by Immediate

Supervisor/Head & Approved by respective dept. HOD will be

submitted to HR Dept. The HR Deptt will finally take the sanction from

the Chairperson.

Procedure

a) The Department Manager/Faculty/Head will complete the

Employment Authorization Form.

b) The Department Manager/Faculty/Head is responsible to ensure

correct authorization procedures have been complied with.

c) The Department Head will provide the Human Resources Deptt with a

fully authorized Employment Authority Form and instruct

commencement of Recruitment.

d) The Human Resources Deptt will control that the correct

authorization has been obtained. When all is in order they shall

commence the recruitment process.

2.4 Newly Created or Restructured Positions

Authority shall be vested in the Management to consider request for

the activation of a newly created or restructured position.

a) Activation of a position shall be allowed by the submission of anEmployment Authorization Form by the HOD of respective Deptt. To

Head (HR) Department.


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b) Once the need to fill a vacancy has been identified, the HOD will

submit a motivated recommendation to the Board for the activation of

the position.

c) Higher Managerial position will be sanctioned through Newspaperadvertise after the necessary approval of Positions / Vacancies budget

etc from CMD.

d) Lower Managerial & Executive Vacancies will be filled through

placement Agencies.

2.5 Employment Procedure

a) The Human Resources Deptt shall receive all applications for

employment and shall acknowledge receipt thereof in writing. All

applicants for employment shall be addressed to the chairperson.

b) The Human Resources Deptt shall sort all applications that meet the

minimum appointment requirements as advertised, and then forward

these applications to the HOD concerned, together with a full list of allapplications received.

c) The HOD, in consultation with the Human Resources Deptt., shall

draw up the shortlist of candidates for interviewing.

d) The Human Resources Deptt shall invite the short listed candidates

for interviews, and will ultimately make a recommendation to the CMD

for appointment.

e) The Human Resources Deptt shall ensure that Reference Check on

shortlist candidates is done, and then the employment offer in

consultation with the relevant HOD to the selected candidate which


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upon acceptance shall be followed by an appointment letter signed by

the CMD or his/her delegate.

2.6 Employment Interview Panel

The Employment Interview Panel shall be provided with the ground

rules of and procedures for interviewing (by the Human Resources

Deptt. / Management) prior to the actual commencement of interviews.

The Panel shall consist of the following persons:

a) The HOD concerned

b) Chairperson

c) Director

2.7 Appointment

All staff will be appointed by the SHOE KING Management or asdelegated authority

Letters of Appointment: The formal letter of appointment will bear the

signature of the Chairperson or as delegated. The letter shall require the

signature of the appointee before the appointment is considered

effective.

Job Description: On appointment, an employee shall be given a jobdescription. This shall specify the scope and terms of reference for their

position. Each member of staff/faculty is expected to devote their time

and attention to their work and not engage in activities that may conflict

with SHOE KING Institutes interests or negatively affect their

performance. Job Descriptions shall be reviewed yearly.


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2.8 EMPLOYMENT OF WORKERS/FACULTY/STAFF

Rules for hiring:--

2.8.1 Replacement: A replacement to the existing

workers/faculty/staff personnel whose services have been vacated

due to absence / resignation to the desired level / discipline /

otherwise may be under taken, if the requirements are urgent.

However, a written approval / sanction must be obtained before

hiring by the concerned department head.

2.8.2 Additional Worker : The need of additional

worker/faculty/staff personnel is judged and estimated over a

period of time either prior to commencing a project or mid way,

when the need arises. Once the need has been determined, the

same may be justified and written approval / sanction must

invariably be taken prior to hiring the worker/faculty/staff

personnel by the concerned department head.

2.8.3 Verification : Verification of the individuals identity andcapability being an important aspect, must also be fully ensured.

Skilled individual must be kept on trial for a period of 02-07 days

to determine their degree of performance.

Probation: Any appointment made on SHOE KING Institute shall be

subject to a probation period as specified in the letter of appointment.

One month towards the end of the probation period, employees

immediate supervisor shall make an appraisal report recommending aconfirmation or termination of the employees services. Where

necessary, the probation period may be extended as considered

necessary by SHOE KING Institute. An employee who is on probation

may have his appointment terminated at any time without notice. In the


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event of such termination, the employee is paid for the period worked up

to the time of termination Confirmation of appointment: On

recommendation from the immediate supervisor, Group.Dy.GM HR

shall in writing, confirm the appointment.Duration of employment: Unless otherwise stated, employment for all

staff shall be on permanent basis subject to satisfactory completion of

the probation period .

2.9 Personal Data

On acceptance of an appointment, the new staff member is required to

complete the Employee Personal Data form (As per Appendix ).

The new employee/ Selected Candidate have to submit the form. Any

changes in personal status shall be reported promptly to the Human

Resources Deptt/HOD/Chairperson by completing a fresh Personal Data

Form. Staff/Faculty records and related correspondence shall be treated

confidentially at all times.

2.10 INDUCTION

Policy Statement

All new employees should complete an induction program upon their

commencement. The induction period also refers to the Six month

probationary period during which it is recognised all staff/faculty may

need ongoing familiarisation with their role, the business, systems and

processes.


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Objective

The objective of the induction policy is to familiarise the employee with

the institute, their job, the industry, colleagues, institue systems,

processes and policies with a view to ensuring they can make acontribution to effective outcomes as quickly as possible.

The induction should be a combination of standard components as well

as learning specifically tailored to the role.

Application

The induction policy will be successfully applied when all new

employees meet their probationary period performance targets.

Process

Complete the induction planning format prior to the employees

commencement date. Introduce the employee to the induction schedule

and dates.

3. LEAVE RULES

1.0 OBJECTIVE

To provide various kinds of leave to employees of the institute so

that absenteeism and unplanned leave could be controlled. It isexpected that employee would plan their leaves in advance except in

an emergency.


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2.0 APPLICABILITY

These rules shall apply to all regular employees of the institute

including those on probation / visiting and shall not apply to theperson employed on Temporary / part time / daily rates except when

the terms of employment provides otherwise.

3.0 TYPES OF LEAVES

3.1 Casual Leave (CL)3.2 Earned Leave (EL)3.3 Sick Leave (SL)3.4 Maternity Leave (ML)3.5 Leave without pay (LWP)

4.0 ELIGIBILITY

4.1 Casual Leave (CL)4.1.1.An employee shall be entitled to07CL in a calendar year

i.e. from 1stJuly to June30.

4.1.2.CL is intended to cover casual absence of the employeeand can be granted for half day also. For half days leave

the lunch interval shall be taken as the dividing time.

4.1.3.CL shall be credited on pro-rata basis if any person joins

in between the year. Half CL will due after completing 20

complete working days.

4.1.4.Casual leave not availed will not be encashed in any case

and will be lapsed.

4.1.5.Casual Leave will be permitted after the season.4.2 Earned Leave (EL)

4.2.1An employee shall be entitled to 15 days EL in aCalendar year.

4.2.2One Earned leave will due after working 20 completeworking days.


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4.2.3EL shall be credited to employee leave account inadvance on a pro rata basis. New Joinee however can

avail EL only after completing 6 -months of their

services/ confirmation in the institute.

4.2.4EL for half day is permissible.4.2.5EL can be combined with CL.4.2.6EL can be encashed only after completing one years of

service.

4.3 Sick Leave (SL)

Can be availed in the event of the individual being unfit to attend

office

1.An employee shall be entitled to07SL in a calendar year i.e.from 1

stJuly to June. 30

2.SL for more than two days should be duly supported by amedical certificate.

3.Weeklyoffs, declared holidays falling within the sick leaveperiod will be counted as leave. All other holidays (summer

vacation, maternity leave etc.) may be prefixed/ suffixed and

will be excluded.

4.SL may be taken for half day also i.e. either pre-lunch orpost-lunch period

4.4 Maternity Leave (ML)4.4.1Female employees with at least 12 months of

continuous service are entitled to maternity leave.

4.4.2Maternity leave is unpaid leave which is available for aminimum period of six weeks and for a maximum

period of 52 weeks if the employee is the primary

career. Other types of leave can be taken in conjunction

with maternity leave providing the total period of

absence does not exceed 52 weeks.

4.4.3Any employee taking maternity leave is required to takeat least six weeks continuous leave after the date of the


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birth of her child. The employer may, with 14 days

notice, require the employee to commence maternity

leave within six weeks of the presumed confinement

date.

4.4.4Applications for maternity leave should includepersonal details, a medical certificate detailing the

expected date of confinement or birth, proposed

commencement date and duration of leave. Advice as to

whether superannuation payments will continue should

be given by the employee.

4.4.5Where the pregnancy is terminated other than by birthof a living child and the employee has not commenced

maternity leave, her entitlement to such leave ceases toexist. However, an employee may be entitled to special

maternity leave, as specified by her doctor, if the

pregnancy has extended beyond 28 weeks, and is

terminated other than by birth of a living child.

4.4.6Details of return to work date must be given four weeksin advance. The employee is entitled to return to the

position held prior to taking maternity leave or to an

alternative position of comparable status and pay.

4.5 LeaveWithout Pay (LWP)

4.1.1Employee may be granted LWP at the discretion of themanagement. Absence from work without

authorization of LWP by any employee for more than

10-days will lead to termination of service without

notice.

Type o

Leave

Annual

Entitlement

Maximum

Accrual(3

years)


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Earned

Leave

15 50

Sick Leave 7 21

Casual

Leave

7 --

Vacation As decided by the

management from time

to time

14

MaternityLeave

As per law on the subject

5.0 ENCASHMENT OF LEAVEOnly EL is encashable. Encashment of EL shall be allowed in excess

of 30 days EL accumulated in individual leave account. Employeesleaving services of the institute as a consequence of resignation /

termination to services / death while in service will be paid in lieu of

EL standing to their credit at the time of leaving services subject to a

maximum of 30 EL.

6.0 ACCUMULATION OF LEAVEEL can be accumulated to maximum 50 days in individual leave

account.


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FINANCE AREA: - (RATIO ANALYSIS)

Current ratioshows that current assets are more than the currentliabilities, which means that company will not face any problem inthe future; it can pay off its liabilities out of its current assets.

Quick Ratio of the company is showing the liquidity of the

company to pay its current liabilities out of its quick or acid assets.

Higher the ratio the better it is.

Stock turnover ratio is showing the greater efficiency of theorganization in terms of inventory and sales. The Higher the ratio

the better it is because it shows that how many times the average

inventory is turn into sales.

Debt Equity ratio of the company is indicating a goodperformance because Debt should be less as compared to the

Equity in an organization, especially if it is a start up. Because it is

indicating less risks.

Return on Capital Employed (ROCE)is a profitability ratio thatmeasures how efficiently a company can generate profits to capital

employed. Higher ratio will be more preferable

Below Are the Snapshots of Financial Statements of Shoe King Private

Limited. These Include the following: -

A)Income StatementB)Balance Sheet.C)Cash Flow Statement.


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Company Name

FORECASTED REVENUE

Units sold

annually

Average

price per unit

Annual revenue

per product

Product 1 2500 125.00 312,500.00

Product 2 500 100.00 50,000.00

Product 3 400 65.00 26,000.00

Product 4 500 25.00 12,500.00

TOTAL OF FORECASTED REVENUE 401,000.00

COST OF GOODS SOLD

Expected

gross margin

Annual cost of

goods sold

Product 1 20% 62,500.00

Product 2 20% 10,000.00

Product 3 20% 5,200.00

Product 4 20% 2,500.00

TOATL COST OF GOODS SOLD 80,200.00

ANNUAL MAINTENANCE, REPAIR AND OVERHAUL

Factor (%) on capital equipment 10%

ASSET DEPRECIATION

Number of Years 5

TAX

Annual Tax Rate 30%

INFLATION

Annual Inflation Rate 3%

PRODUCT PRICE INCREASE

Annual Price Increase 5%

FUNDING

Loan Amount 50,000.00

Annual interest rate 5.00%

Term of loan (months) 60

Monthly rate 0.41%

Payment 941.02

Total Amount Payable 56,461.20


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ASSETS

Current Assets Initial balance 2014 2015 2016 2017 2018

Cash and short-term investments 50,000.00 328,430.81 468,011.39 705,924.00 ########## ##########

Accounts receivable 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00

Total inventory 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00

Prepaid expenses - - - - - -

Deferred income tax - - - - - -

Other current assets 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00

Total current assets 83,000.00 361,430.81 501,011.39 738,924.00 ########## ##########

Property and Equipment Initial balance 2014 2015 2016 2017 2018

Buildings 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00

Land 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00

Capital improvements - - - - - -

Machinery and equipment 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00

Less Accumulated depreciation expense 6,000.00 12,180.00 18,540.00 25,080.00 31,800.00

Total Property and Equipment 40,000.00 34,000.00 27,820.00 21,460.00 14,920.00 8,200.00

Other Assets Initial balance 2014 2015 2016 2017 2018

Goodwill - - - - - -

Deferred income tax - - - - - -

Long-term investments - - - - - -

Deposits - - - - - -

Other long-term assets - - - - - -

Total Other Assets - - - - - -

TOTAL ASSETS 123,000.00 395,430.81 528,831.39 760,384.00 ########## ##########


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LIABILITIES

Current Liabilities Initial balance 2014 2015 2016 2017 2018

Accounts payable 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00

Accrued expenses - - - - - -

Notes payable/short-term debt - - - - - -

Capital leases - - - - - -

Other current liabilities 100.00 100.00 100.00 100.00 100.00 100.00

Total Current Liabilities 2,100.00 2,100.00 2,100.00 2,100.00 2,100.00 2,100.00

Debt Initial balance 2014 2015 2016 2017 2018

Long-term debt/loan 50,000.00 40,951.26 31,450.08 21,473.85 10,998.80 -

Other long-term debt 100,000.00 200,000.00 150,000.00 175,000.00 225,000.00 150,000.00

Total Debt 152,100.00 243,051.26 183,550.08 198,573.85 238,098.80 152,100.00

Other Liabilities Initial balance 2014 2015 2016 2017 2018

Other liabilities (specify) - - - - - -

Other liabilities (specify) - - - - - -

Total Other Liabilities - - - - - -

TOTAL LIABILITIES 52,100.00 43,051.26 33,550.08 23,573.85 13,098.80 2,100.00

EQUITY

Initial balance 2014 2015 2016 2017 2018

Owner's equity (common) 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00

Paid-in capital 250,000.00 250,000.00 250,000.00 250,000.00 250,000.00 250,000.00

Preferred equity - - - - - -

Retained earnings - 181,479.55 374,381.31 591,910.15 848,458.65 ##########

TOTAL EQUITY 300,000.00 481,479.55 674,381.31 891,910.15 ########## ###########

TOTAL LIABILITIES AND EQUITY 352,100.00 524,530.81 707,931.39 915,484.00 ########## ##########


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Operating activities Year 1 Year 2 Year 3 Year 4 Year 5

Net income 181,479.55 192,901.76 217,528.85 256,548.49 318,090.68

Depreciation 6,000.00 6,180.00 6,360.00 6,540.00 6,720.00

Accounts receivable - - - - -

Inventories - - - - -

Accounts payable - - - - -

Amortization - - - - -

Other liabilities - - - - -

Other operating cash flow items - - - - -

Total operating activities 187,479.55 199,081.76 223,888.85 263,088.49 324,810.68

Investing activities Year 1 Year 2 Year 3 Year 4 Year 5

Capital expenditures - - - - -

Acquisition of business - - - -

Sale of fixed assets - - 1,000.00- - -Other investing cash flow items - - - - -

Total investing activities - - 1,000.00- - -

Financing activities Year 1 Year 2 Year 3 Year 4 Year 5

Long-term debt/financing 90,951.26 59,501.18- 15,023.76 39,524.95 85,998.80-

Preferred stock - - - - -

Total cash dividends paid - - - - -

Common stock - - - - -

Other financing cash flow items - - - - -

Total financing activities 90,951.26 59,501.18- 15,023.76 39,524.95 85,998.80-

Cumulative cash flow 278,430.81 139,580.58 237,912.61 302,613.44 238,811.88

Beginning cash balance 50,000.00 328,430.81 468,011.39 705,924.00 ##########

Ending cash balance 328,430.81 468,011.39 705,924.00 ########## ##########


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INCOME

2014 2015 2016 2017 2018

Revenue

Product 1 312,500.00 328,125.00 360,937.50 415,078.13 498,093.75

Product 2 50,000.00 52,500.00 57,750.00 66,412.50 79,695.00

Product 3 26,000.00 27,300.00 30,030.00 34,534.50 41,441.40

Product 4 12,500.00 13,125.00 14,437.50 16,603.13 19,923.75

Total revenue 401,000.00 421,050.00 463,155.00 532,628.25 639,153.90

Cost of Sales

Product 1 62,500.00 64,375.00 68,237.50 74,378.88 83,304.34

Product 2 10,000.00 10,300.00 10,918.00 11,900.62 13,328.69

Product 3 5,200.00 5,356.00 5,677.36 6,188.32 6,930.92

Product 4 2,500.00 2,575.00 2,729.50 2,975.16 3,332.17

Cost of goods sold 80,200.00 82,606.00 87,562.36 95,442.97 106,896.13

Gross Profit 320,800.00 338,444.00 375,592.64 437,185.28 532,257.77

Non-Operation Income

Rental - - - - -

Interest income - - - - -

Loss (gain) on sale of assets - - 1,000.00 - -

Other income (specify) - - - - -

Toatal Non-Operation Income - - 1,000.00 - -

TOTAL INCOME 320,800.00 338,444.00 376,592.64 437,185.28 532,257.77


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EXPENSES

Operating expenses

Sales and marketing 15,000.00 15,450.00 16,377.00 17,850.93 19,993.04

Depreciation 6,000.00 6,180.00 6,360.00 6,540.00 6,720.00

Insurance 7,500.00 7,725.00 8,188.50 8,925.47 9,996.52

Payroll and Payroll Tax 21,000.00 21,630.00 22,927.80 24,991.30 27,990.26

Property taxes 2,500.00 2,575.00 2,729.50 2,975.16 3,332.17

Maintenance, repair, and overhaul 1,000.00 1,030.00 1,060.00 1,090.00 1,120.00

Utilities 5,000.00 5,150.00 5,459.00 5,950.31 6,664.35

Administrative fees 300.00 309.00 327.54 357.02 399.86

Interest expense on long-term debt 2,243.50 1,791.06 1,316.00 817.19 293.44

Other 1,000.00 1,030.00 1,091.80 1,190.06 1,332.87

Total operating expenses 61,543.50 62,870.06 65,837.14 70,687.43 77,842.51

Non-Recurring Expenses

Unexpected Expenses - - - -

Other expenses - - - - -

Total Non-Recurring Expenses - - - - -

TOTAL EXPENSES 61,543.50 62,870.06 65,837.14 70,687.43 77,842.51

TAXES

Income Tax 77,776.95 82,672.18 93,226.65 109,949.35 136,324.58

Other Tax (specify) - - - - -

TOTAL TAXES 77,776.95 82,672.18 93,226.65 109,949.35 136,324.58

NET PROFIT 181,479.55 192,901.76 217,528.85 256,548.49 318,090.68


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OPERATIONS

Raw material required

The raw material required for manufacturing of our product is

1. Rubber

2. Rexene

3. Leather

4. Metal

5. Cloth

6. Foams

Supply chain

Local vendor -> manufacturer-> warehouses-> distributor-> retailer->

customer

For the manufacturing of our product we have selected local vendor to

provide us with the raw materials such as rubber, leather, foam etc. We

also have tie-up with Intel, Intel will provide us with the microprocessor

chips we needed to implant in our product.

After collecting all the raw material from our vendors and associates we

manufacture shoes with the latest technology and machines which we

have purchased. We produce 4 different types of products in different

numbers in a single day.


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After manufacturing all the products we keep it in our warehouses for

storage.

As per the demand our distributor will distribute the product to different

retail stores in India.

Future Plans

We as the Founder expects that the business will aggressively expand

during the first five years of operation. We intend to implement

marketing campaigns that will effectively target female consumers

within the target market.

Exit Strategy

We would exit the market in case we feel that the market share has

decreased substantially. Another thing would be that we would leave the

market would be when Outside investors want to collect their return and

have to Remember that equity investments are not like loans with

interest. The investor sees no return until he cashes out, or the company

is sold. Even five years is a long time to wait for any pay check.

business model report on shoe king

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