NTH Wedding Consultants Company
36 Nguyen Thai Hoc St. Dist. # 1 Ho Chi Minh City, S.R. Vietnam Tel: 84-8-8252525 Fax: 84-8-8252526 Cell: 84-90-3759593 Email: infor@nth-wcc.com Contact: Mr. Nguyen Tien Hung Managing Director Established 2004 Website: www.nth -wcc.com
Business Plan
NTH Wedding Consultants Company
Version: Copy No.: Date:
6 – Final 2 of 10 December – 2003
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Table of contents__________________________________
Executive Summary........................................................................................ 03
I. II. III. BACKGROUND AND PURPOSE............................................................. 04 OBJECTIVES ............................................................................................... 04 MARKET ANALYSIS .................................................................................. 04 3.1 3.2 3.3 3.4 IV. 4.1 4.2 4.3 V. 5.1 5.2 5.3 VI. 6.1 6.2 6.3 6.4 VII. 7.1 7.2 VIII. 8.1 8.2 8.3 IX. X. Overall Market .................................................................................. 05 Specific Market................................................................................. 05 Competitive factors .......................................................................... 06 Macroenvironment influences ........................................................ 07 Production Process.......................................................................... 07 Resource Requirements ................................................................. 07 Quality Assurance ............................................................................ 07 Overall concept and orientation..................................................... 08 Marketing strategy and resources ................................................. 08 Sales Forecasts................................................................................ 08 Financial resources a nd Strategy.................................................. 09 Source and Uses of Funds ............................................................. 09 Financial Statements ....................................................................... 11 Break-even Analysis ........................................................................ 12 Key Personnel Resources .............................................................. 13 Human Resource Management Strategy..................................... 14 Form of Business ............................................................................. 14 Equity Positions ................................................................................ 14 Deal Structure ................................................................................... 15
DEVELOPMENT AND PRODUCTION .................................................... 07
MARKETING................................................................................................ 08
FINANCIAL PLAN ....................................................................................... 09
ORGANIZATION AND MANAGEMENT ................................................. 13
OWNERSHIP................................................................................................ 14
CRITICAL RISKS AND CONTINGENCIES............................................ 15 SUMMARY AND CONCLUSIONS ........................................................... 15
Attachments of Projected Financial Statements and Ratios Analysis ............................16-22
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Executive Summary
Type of Business: NTH Wedding Consultants is a full service company that provides complete consulting services for weddings, holy unions and anniversaries. Our consultants are experienced and dedicated professionals with many years of event planning experience. NTH Wedding Consultants is unique in that we give clients our undivided attention. We listen to their needs and work with them to create the event of their dreams. Our clients' wishes become our commands. Whether our client wants a Western, or traditional wedding, we can help. Our services include weddings, honeymoons, receptions, anniversary consultations, budget planning, answers to etiquette questions, as well as full-service referrals to florists, hair stylists, entertainers, musicians, etc. Management: NTH Wedding Consultants is led by Mr. Nguye n Tien Hung who has years of experience as CEO for consulting agents as well as his administrative expertise. The rest of the team has over 8 years of experience in marketing, sales, finance and operations. Product and Competition: Unlike most of its competitors, NTH Wedding Consultants will be offering a full range of services and thus provide the convenience of one-stop shopping for its clients. This will significantly reduce the customers' time and efforts preparing for such an important event as a wedding. Moreover, by utilizing numerous supplier contacts that the company owners have established and economies of scale, NTH Wedding Consultants will be able to pass on to its customer sizable cost savings. Financial: This business will start out as a simple proprietorship, owned by its founders. As the operation grows, the owners will consider re-registering as a limited liability company or as a corporation, whichever will better suite the future business needs. Use of Proceeds: We estimated that our start-up costs will be VND 80,000,000 (including legal costs, logo design, advertising, direct mail, and related expenses). An additional VND 160,000,000 will be required in the bank account as an operating capital for the first two months of operation.
Financial Projections: 2004 2005 2006
Revenue Net Income Assets Liabilities Owner Equity
800,000 90,000 465,000 135,000 330,000
1,200,000 280,000 785,000 265,000 520,000
1,600,000 380,000 1,085,000 465,000 620,000
Exit: The experienced founders of this first mover company will handle dayto-day operations of the company and will work collaboratively to ensure that this business venture is a success.
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I.
BACKGROUND AND PURPOSE
History: NTH Wedding Consultants is a start-up company in 2004 that provides wedding, holy union, and anniversary consulting services to brides, grooms and other family members. Current Situation: We are a full-service bridal consulting group and our goal is to put the "fun" back into planning a wedding, holy union or anniversary party. Too many people become overly stressed and frustrated when planning these wonderful events. Our main market for our start up is the potential markets in the Southern part of Viet Nam - Ho Chi Minh City with population of more than 10 million people and over 200,000 marriages per annum. We are experienced and professional consultants and will use our expertise to help create memorable and stress free events for our customers. By doing this, our clients can sit back and enjoy their event. The result? We create events suited to the couple's unique style – a true expression of their relationship and individuality as a couple. We are the first mover in this line of service providing in Vietnam. Our Based Resource: Our operation is based mainly on our expertise and our willing desire to give customers full package services so as to minimize costs for their wedding; our strategy is “To approach professional services with reasonable costs” II. OBJECTIVES
Whether this is our client's first wedding, engagement, a renewal of their vows or their anniversary, we want every detail of their event to be both a pleasurable and a memorable experience. Therefore we offer a host of packages and services specifically tailored to the needs of each couple. We are confident that this business venture will be a success and we estimate that our net income will increase more than 20% by the second year. The keys to our success are as follows: 1. Service our clients' needs promptly and efficiently. 2. Maintain excellent working relationships with vendors such as florists, hair salons and bridal shops. 3. Maintain a professional image at all times. III. MARKET ANALYSIS
Nearly 3,000 billion of dong has been spent every year on weddings and receptions in Ho Chi Minh City. Therefore, professional wedding consultants are a commodity, not a calamity.
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3.1
Overall market:
NTH Wedding Consultants are full-service wedding consultants that offer a variety of services to our clients. We pride ourselves on being professional and courteous at all times and we have packages to suit everyone's needs. As aforementioned, marriage is a worth thousands of billion dong industry, therefore, just about everyone we meet is a potential client. However, we mostly advertise to brides, grooms, and family members. The market needs for wedding planning services are strongly shaped by the customers' desire to have a perfectly planned and executed wedding ceremony. Although both major customer segments, brides and grooms and family members, plan and budget for the wedding ceremony as far as a year or more in advance, they often realize that they cannot make all the necessary preparations themselves in a cost effective manner. Strongly affected by the established social values, such customers seek professional advice to ensure that all the important aspects of the wedding ceremony meet or exceed perceived expectations. 3.2 Specific Market
We primarily market our services to the people who need a help most – brides and grooms. In 2002, over eighty-five thousand marriages took place in Ho Chi Minh City. According to the Statistical Office of HCM, the current annual marriage rate in Ho Chi Minh City of nine marriages per 1,000 people and it is still the highest rate among the developing countries. This marriage rate is expected to remain nearly unchanged in the near future. The place where NTH Wedding Consultants plans to operate their business, over 20,000 marriages are registered each year, creates a sizable market potential for this line of business.
Market Analysis
74.10%
24.70% Family Members Others
1.21% Brides & Grooms
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Another customer segment is represented by the numerous family members and guests attending weddings, anniversaries, and similar events. This segment requires event preparation services like gift ideas, etiquette tips, etc. Potential Customers
Brides & Grooms Family Members Others Total
Growth
0% 5% 5% 4.95%
2004
20,000 400,000 1,200,000 1,620,000
2005
20,000 420,000 1,260,000 1,700,000
2006
20,000 441,000 1,323,000 1,784,000
2007
20,000 463,050 1,389,150 1,872,200
2008
20,000 486,203 1,458,608 1,964,810
Besides the wedding arrangements, which NTH Wedding Consultants believe to be their major client assignments, other events the company will provide services to include corporate retreats, etiquette training, etc. This customer segment is estimated to have the annual volume of 60 orders. However, we do not intend to focus on this type of services at the beginning. 3.3 Competitive factors
Competitive analysis conducted by the company owners has shown that there are over 20 service units currently offering some sort of wedding planning services in the area where company is going to be located in – District # 1 of Ho Chi Minh City. However, the majority of the incumbent competitors offer only a limited line of services like, receptions, catering, flower arrangements or gifts. In fact, of these 25 competitors only three offered a range of services somehow approachable or comparable with what NTH Wedding Consultants plan to offer to its customers. The following is the list of the major possible competitors with a brief description of their services:
• •
•
Twin Wedding Restaurant: offers wedding reception, ceremony preparation, rehearsing and execution services. Lotus Wedding Services: provides flower and catering arrangements, wedding reception, photographing & filming services and wedding arrangement services, hair –style service. May-Flower Company: offers its clients entertaining and arrange for their honey-moon journey (like booking, choosing travel agency).
So at the present time, NTH Wedding Consultants is a “first mover” in this product line of services. By aggregating a complete range of wedding services under one roof, NTH Wedding Consultants will offer its customers the ease of one-stop shopping. The market research has also shown that customers anticipate the complete wedding consulting services to be expensive and they budget accordingly. In fact, lower prices are very often associated with poor service quality.
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3.4
Macro-environmental influences
− Political and government analysis: Government has issued many recommendations notice in which the extravagant expenditures for parties, wedding ceremonies and the like are prohibited. For all of Vietnam people, the action of having wasteful expenditures for wedding and parties are considered as to offend against law and direction of government on the progress of construction and development of the S.R. of Vietnam. − Social environment: Nowadays, people tend to spend less money on their occasion of their marriage. The reasons can be explained as marriages do not have and do not want to spend time and money to the event, in addition, they and their family members do not want to invite as many guest as they used to do in the past since they consider that wedding is their privacy and only inform to their close relative. This trend may affect the company product line of service.
IV. 4.1
DEVELOPMENT AND PRODUCTION Production processes
NTH Wedding Consultants will offer its services mostly to the brides and grooms, as well as to the family members. The company will position itself as an experienced provider of wedding planning services. Unlike most of its competitors, NTH Wedding Consultants will be offering a full range of services and thus provide the convenience of one-stop shopping for its clients. This will significantly reduce the customers' time and efforts preparing for such an important event as a wedding. Moreover, by utilizing numerous supplier contacts that the company owners have established and economies of scale, NTH Wedding Consultants will be able to pass on to its customers sizable cost savings. 4.2 Resource requirements
The wedding services market is fragmented with the overwhelming majority of the incumbents offering only a limited line of services. There are numerous florists, hair stylists, and caterers to choose from. However, there have been no companies that will provide the full range of services associated with the wedding planning and execution. Therefore, NTH Wedding Consultants will be a coordinator arranging the need of our customers to the related service providers with our professional advice and arrangement. 4.3 Quality assurance
By aggregating a complete range of wedding services under one roof, NTH Wedding Consultants will offer its customers the ease of one-stop shopping. The company w leverage its owners' expertise in planning such events to ill competitively position itself as a premier provider of wedding services. Both
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owners have very strong communication skills that will help develop the 'buzz' about the high quality of the services offered by NTH Wedding Consultants. V. 5.1 MARKETING Overall concept and orientation
Our strategy is simple: we intend to provide our customers with a wide range of services custom tailored to their individual needs. Therefore, whether they require a complete package, or simply consulting on a particular service, we can help. 5.2 Marketing strategy and resources
The company's marketing and sales strategy will be based on the following elements:
− −
Advertising in the Yellow Pages: one page advertisement describing the services will be placed in the Ho Chi Minh City Yellow Pages. Placing advertisements in the local press: including The Youth News Paper, Marriage and Family Biweekly Magazine, Sai Gon Liberation News Paper, Consumer Magazine, and the like. E-marketing: putting on all free advertisement on net and some popular website, such as VNexpress or VNN. Developing affiliate relationships: with other service providers (florists, hair stylists, caterers, tourism agents …) that would receive a percentage of sales to the referred customers. Word of mouth referrals: generating sales leads in the local community through customer referrals. Sales forecasts
− −
−
5.3
At the first stage of the opening, we would have 2% of the marriages to be our customers and then continuously increase in the following year and tend to get plateau in Hochiminh City Market after 2008. Potential Customers Brides & Grooms Family Members Others Total 2004 400 8,000 24,000 32,400 2005 600 12,000 36,000 48,600 2006 800 16,000 48,000 64,800 2007 900 18,000 54,000 72,900 2008 1,000 20,000 60,000 81,000
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With above marketing strategy, with the special services and as the first mover in the market, we strongly believe that the estimation of 2% of the marriages to be our customers and then continuously increase in following year is an unpretentious numbers as the results of the fraction of Ho Chi Minh City market that NTH Wedding Consultants will be able to capture as a result of its marketing effort and strategy. In addition, our pricing strategy is very persuasive and therefore will be easily accepted by our customers. For further details, please go on the next part of our business plan of financial part.
VI. 6.1
FINANCIAL PLANS Financial Resources and Strategy
As mentioned above, we are a full-service wedding consultant group and provide the following services: etiquette advice, event scheduling, discounted invitations and products, vendor confirmation, rehearsal attendance, supervision of both ceremony and reception setup and budget planning We estimate that our start-up costs will be VND 80,000,000 (including legal costs, logo design, advertising, direct mail, and related expenses). An additional VND 160,000,000 will be required in the bank account as an operating capital for the first two months of operation. Initially this will be a home-based business; however, by 2006, we intend to expand our facilities into a well-equipped and operational office. 6.2 Source and Uses of Funds
Hereinafter is a sheet that prepared a detailed list of all physical assets of NTH Weeding Consultants needs to spend and statement of organizational costs including legal, architectural and the like. Start-up Expenses (in 1000VND) Legal Stationery etc. Brochures Insurance Research and development Expensed equipment Other Total Start-up Expenses 9,000 8,000 10,000 9,000 10,000 25,000 9,000 80,000
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Our estimation on start-up capital needed for NTH Wedding Consultants and its allocation can be summarized as the table here below: Start-up Assets Needed (In 1000VND) Cash Balance on Starting Date Other Current Assets Total Current Assets Long-term Assets Total Assets Total Requirements(VND) 160,000 0 160,000 0 160,000 240,000
Our funding plan and its initial balance sheet can be summarized as the table hereunder Funding (In 1000VND) Investment Nguyen Tien Hung Nguyen Van Tung Nguyen Phi Tan Nguyen Phuc Vinh Tuong Vu Anh Hung Nguyen Van Anh Total Requirements Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Current Liabilities Long-term Liabilities Total Liabilities Loss at Start-up Total Capital Total Capital and Liabilities(VND) 0 0 0 0 0 0 (80,000) 240,000 160,000 40,000 40,000 40,000 40,000 40,000 40,000 240,000
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START UP CHART
(VND)
250,000,000.00 200,000,000.00 150,000,000.00 80,000,000.00 100,000,000.00 50,000,000.00 Expense Assets Investment Loan 160,000,000.00 240,000,000.00
6.3
Financial Statements
Since our company is a start-up company, therefore, we will introduce hereunder three projected financial statements which include profit and loss for 5 years; cash flow and analysis as well as balance sheets for the ends of the first 3 to 5 years. − Our projected Profit and Loss Statement for first 5 years is shown in the attachment No. 3. − Our projected Monthly Profit and Loss Statement for first year is shown in the attachment No. 4. − Our projected Cash Flows Statement for first 5 years is sho wn in the attachment No. 5. − Our projected Balance Sheet for the end of first 5 years is shown in the attachment No. 6. Net Profit/Total Sales − Our projected Financial Ratios 11.25% 23.33% 23.75% 23.89% 24.25% 100% Analysis table for the first 5 years is 80% shown in the 60% attachment No. 7.
40%
Our projected financial trend can be visualized in the charts hereunder for your prompt review and consideration.
20% 0% 2004 2005 2006 2007 2008
Net Profit
Total Sales
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CASH FLOW PROJECTION FOR 2004 - 2008 1,000,000 800,000 600,000 400,000 200,000 (200,000) 2004 2005 Net CashFlow 2006 2007 2008
Cash Balance
Sales Vs Net Profits in 2004
100,000 80,000 60,000 40,000 20,000 0 -20,000 -40,000
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Net Sales
Net Profits
6.4
Break-even Analysis Break-even Analysis (In VND) Assumptions: Average Per-Unit Revenue 4,000,000 Average Per-Unit Variable Cost 0 Estimated Monthly Fixed Cost 40,000,000 Monthly Units Break-even 10 Monthly Revenue Break-even 40,000,000
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VII. 7.1
ORGANIZATION AND MANAGEMENT Key Personnel Resources
Our wedding consultants are: − Nguyen Tien Hung − Nguyen Van Tung − Nguyen Phi Tan − Vu Anh Hung − Nguyen Phuc Vinh Tuong − Nguyen Van Anh Collaboratively we have planned and serviced over 150 weddings and receptions. We are knowledgeable about all areas of planning, decorating, as well as budgeting. Nguyen Tien Hung has an MBA and BS in Communications and a minor in Interior Decorating. He has been an external protocol consultant for five years and became interested in providing consultant services when he successfully planned first five weddings for his family and friends. Since then, Tien Hung has received extensive training in reception planning and his certification from the National Association of Culture and Art of Ho Chi Minh City. Nguyen Van Tung, in addition to his marketing background, has an Associates Degree in Fashion Design, and, like Tien Hung, he became interested in becoming a consultant when he successfully planned first three weddings for his friends. Tung enjoys all aspects of planning traditional and nontraditional weddings. Vu Anh Hung, who has a finance background, will help the company assess and foresee its financial resources. Meanwhile, Nguyen Phuc Vinh Tuong has lots of experience in the field of banking and financial arrangement. Vu Anh Hung and Vinh Tuong are also going to receive their MBA specialized in Finance from AUH by this April and of course NTH Wedding Consultants can get benefit from their knowledge as well as experience. Nguyen Phi Tan and Nguyen Van Anh are marketing major, with skills and experience in sales and the consumer products market. They will also be able to provide an understanding of international prospects. The team’s strength rests upon its balanced skilled between finance and sales, as well as management and arrangement of etiquette, which should enable the firm to grow safely.
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7.2
Human Resource Management Strategy
Initially, NTH Wedding Consultants' personnel will include only the six owners, two of them, Nguyen Tien Hung and Nguyen Van Tung, will be working full time and others will be working part time. As the personnel plan shows, we expect to have an additional help of Nguyen Phi Tan and Nguyen Phuc Vinh Tuong in the next year and two remainders in the year after. These persons will work full time. Personnel Plan Nguyen Tien Hung Nguyen Van Tung Nguyen Phi Tan Nguyen Phuc Vinh Tuong Vu Anh Hung Nguyen Van Anh Total People 2 4 2004 X X 2005 X X X X 2006 X X X X X X 6 2007 X X X X X X 6 2008 X X X X X X 6
VIII. 8.1
OWNERSHIP Form of Business
This business will start out as a simple proprietorship, owned by its founders. As the operation grows, the owners will consider re-registering as a limited liability company or as a corporation, whichever will better suite the future business needs. The company founders, with our aforementioned personnel plan, will handle day-to-day operations of the plan and will work collaboratively to ensure this business venture is a success. 8.2 Equity Positions
We estimate that our start-up costs will be VND 80,000,000 (including legal costs, logo design, advertising, direct mail, and related expenses). An additional VND 160,000,000 will be required in the bank account as an operating capital for the first two months of operation. The start-up costs are to be financed in equal portions by the owners' personal funds with the details as follows:
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Owners’ Equity Position (VND) Partner Investment Nguyen Tien Hung Nguyen Van Tung Nguyen Phi Tan Nguyen Phuc Vinh Tuong Vu Anh Hung Nguyen Van Anh Total Owners’ Equity 8.3 Deal Structure 40,000,000 40,000,000 40,000,000 40,000,000 40,000,000 40,000,000 240,000,000
As mentioned above, at present time, we do not intend to extend our operations in the first three years, However if we could get the support or funding from any angel investors, we will try from our third year to expand our operations to cover some large provinces in Viet Nam like Ha Noi, Hai Phong, Da Nang, Nha Trang, Hue, Can Tho. And this enlargement may require a funding capital of 10 times more than our current capital.
IX.
CRITICAL RISKS AND CONTINGENCIES
We strongly believe that our company will be a success. As with any new venture, certain risks exist. − No similar type of service currently exists; we are currently testing the market. − Although this is a start-up, we have strong experience in the entertainment industry and familiar to the need of potential cus tomer and can bring that knowledge to this company.
X.
SUMMARY AND CONCLUSIONS
We believe that our concepts of providing such service will be accepted for the following reasons. First, market trends indicate the need and appearing to be huge requirements. Our product is differentiated through its special offer to customers as one stop shopping, helping our customer from a-z as a whole that will completely meet customer’s needs. In addition, the sales, marketing, and financial experience of our team and especially our management skills, together with all of enthusiasm of the group will provide the venture with the requisite skills to make this first mover venture a success.
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Attachment No 1.
Financial Plan
NTH WEDDING CONSULTANTS COMPANY
Start-up Expenses (in 1000VND) Legal Stationery etc. Brochures Insurance Research and development Expensed equipment Others Total Start-up Expenses 9,000 8,000 10,000 9,000 10,000 25,000 9,000 80,000
Start-up Assets Needed (In 1000VND) Cash Balance on Starting Date Other Current Assets Total Current Assets Long-term Assets Total Assets Needed Total Requirements 160,000 0 160,000 0 160,000 240,000
Attachment No 2.
Equity Positions
NTH WEDDING CONSULTANTS COMPANY
At Start Up Funding (In 1000VND) Investment (1) Nguyen Tien Hung Nguyen Van Tung Nguyen Phi Tan Nguyen Phuc Vinh Tuong Vu Anh Hung Nguyen Van Anh Total Requirements 40,000 40,000 40,000 40,000 40,000 40,000 240,000 Reinvest from RE (2) 70,000 70,000 70,000 70,000 70,000 70,000 420,000 (1) + (2) 110,000 110,000 110,000 110,000 110,000 110,000 660,000 End of 2008 TOTAL
Attachment No 3.
Profit and Loss Statement
NTH WEDDING CONSULTANTS COMPANY
Pro Forma Profit and Loss 2004 (In 1000VND) Sales Direct Cost of Sales Others Total Cost of Sales Gross Profit Gross Margin % Expenses: Payroll& wages Sales & Marketing & Other Expenses Depreciation Leased Equipment Utilities Insurance Rent Payroll Taxes Others Total Operating Expenses Profit Before Interest and Taxes Interest Expense Taxes Incurred Start up expense Net Profit Net Profit/Sales 130,000 140,000 0 30,000 20,000 0 30,000 0 0 350,000 250,000 0 80,000 80,000 90,000 11.25% 280,000 23.33% 380,000 23.75% 430,000 23.89% 485,000 24.25% 220,000 180,000 0 40,000 30,000 0 30,000 0 0 500,000 400,000 0 120,000 320,000 200,000 0 50,000 40,000 0 30,000 0 0 640,000 560,000 0 180,000 380,000 200,000 0 60,000 50,000 0 40,000 0 0 730,000 620,000 0 190,000 440,000 220,000 0 60,000 50,000 0 40,000 0 0 810,000 690,000 0 205,000 800,000 1,200,000 1,600,000 1,800,000 2,000,000 150,000 50,000 200,000 600,000 75.00% 250,000 50,000 300,000 350,000 50,000 400,000 400,000 50,000 450,000 450,000 50,000 500,000 2005 2006 2007 2008
900,000 1,200,000 1,350,000 1,500,000 75.00% 75.00% 75.00% 75.00%
Attachment No 4.
Profit and Loss Statement - Year 2004
NTH WEDDING CONSULTANTS COMPANY
Pro Forma Profit and Loss Year 2004 (in 1,000 VND) Sales
Direct Cost of Sales Others 2004 Jan Feb Mar Apr May 75,000 14,000 6,000 20,000 55,000 73% Jun 70,000 13,000 5,000 18,000 52,000 74% Jul 75,000 13,000 5,000 18,000 57,000 76% Aug 80,000 13,000 4,600 17,600 62,400 78% Sep 82,000 13,000 4,700 17,700 64,300 78% Oct 80,000 13,000 4,600 17,600 62,400 78% Nov 83,000 13,000 4,500 17,500 65,500 79% Dec 85,000 13,000 4,600 17,600 67,400 79%
Total Cost of Sales
Gross Margin Gross Margin %
800,000 20,000 30,000 50,000 70,000 150,000 5,000 10,000 14,000 16,000 50,000 0 0 6,000 5,000 200,000 5,000 10,000 20,000 21,000 600,000 15,000 20,000 30,000 49,000 75% 75% 67% 60% 70% 130,000 0 0
Expenses:
Payroll& wages Sales and Marketing and Other Expenses Depreciation Leased Equipment Utilities Insurance Rent Payroll Taxes Others 0 10,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 9,000 10,000 0 2,500 1,600 0 2,500 0 0 0 2,500 1,700 0 2,500 0 0 9,000 0 2,500 1,700 0 2,500 0 0 9,300 0 2,500 1,740 0 2,500 0 0 9,500 0 2,500 1,740 0 2,500 0 0 9,400 0 2,500 1,700 0 2,500 0 0 9,400 2,500 1,730 0 2,500 0 0 9,400 2,500 1,790 0 2,500 0 0 140,000 25,000 15,000 15,000 10,000 0 30,000 20,000 0 30,000 0 0 0 2,500 1,500 0 2,500 0 0 0 2,500 1,500 0 2,500 0 0 0 2,500 1,700 0 2,500 0 0 0 2,500 1,600 0 2,500 0 0
Total Operating Expense Profit Before Interest/Taxes
Interest Expense Taxes Incurred Start up expense
Net Profit
Net Profit/Sales
350,000 31,500 21,500 21,700 26,600 30,600 31,700 30,700 31,040 31,240 31,100 31,130 31,190 250,000 -16,500 -1,500 8,300 22,400 24,400 20,300 26,300 31,360 33,060 31,300 34,370 36,210 0 0 0 0 0 0 0 0 0 0 0 0 0 80,000 3,000 7,000 7,000 7,000 9,000 9,000 9,500 9,400 9,400 9,700 80,000 6,700 6,700 6,700 6,700 6,700 6,700 6,700 6,620 6,620 6,620 6,620 6,620 90,000 -23,200 -8,200 -1,400 8,700 10,700 6,600 10,600 15,740 16,940 15,280 18,350 19,890 11.25% 0 0 0 12.43% 14.27% 9.43% 14.13% 19.68% 20.66% 19.10% 22.11% 23.40%
Attachment No 5.
Cash Flows Statement
NTH WEDDING CONSULTANTS COMPANY PROJECTED CASHFLOW FROM 2004 TO 2008
Pro Forma Cash Flow (In 1000VND)
Net sales Depreciation Increase in account receivables Increase in advances
2004 800,000 0 (250,000) 20,000 570,000 (150,000) 0 65,000 (85,000) (350,000) (50,000) 0 (400,000) (80,000) 50,000 (30,000) 55,000 0 0 55,000 160,000 215,000
2005 1,200,000 0 (50,000) 50,000 1,200,000 (250,000) 0 50,000 (200,000) (500,000) (50,000) 0 (550,000) (120,000) 30,000 (90,000) 360,000 0 (90,000) 270,000 215,000 485,000
2006 1,600,000 0 (100,000) 50,000 1,550,000 (350,000) 0 100,000 (250,000) (640,000) (50,000) 0 (690,000) (180,000) 50,000 (130,000) 480,000 0 (280,000) 200,000 485,000 685,000
2007 1,800,000 0 (50,000) 0 1,750,000 (400,000) 0 0 (400,000) (730,000) (50,000) 0 (780,000) (190,000) 0 (190,000) 380,000 0 (200,000) 180,000 685,000 865,000
2008 2,000,000 0 (100,000) 0 1,900,000 (450,000) 0 100,000 (350,000) (810,000) (50,000) 0 (860,000) (205,000) 10,000 (195,000) 495,000 (420,000) (200,000) (125,000) 865,000 740,000
Cash Collections
COGS Inventory Increase in account payables
Cash Inputs
Operating expense Other expense Accrued Liabilities
Cash expense
Tax Expense +Tax payable
Cash Tax Paid Operating Cash Flow
Cash flow from Investment Cash flow from financing
Net Cash Change
Cash at beginning
Cash By The End of the year
Attachment No 6.
Balance Sheet
NTH WEDDING CONSULTANTS COMPANY BALANCE SHEET FROM 2004 TO 2008
Balance Sheet (In 1.000VND)
Cash Account Receivables Inventories
2004
2005
2006
2007
2008
215,000 250,000 0 465,000 0 0 0 465,000 50,000 20,000 15,000 0 50,000 135,000 240,000 90,000 330,000 465,000
485,000 300,000 0 785,000 0 0 0 785,000 100,000 70,000 15,000 0 80,000 265,000 240,000 280,000 520,000 785,000
685,000 400,000 0 1,085,000 0 0 0 1,085,000 190,000 120,000 25,000 0 130,000 465,000 240,000 380,000 620,000 1,085,000
865,000 450,000 0 1,315,000 0 0 0 1,315,000 200,000 120,000 15,000 0 130,000 465,000 240,000 610,000 850,000 1,315,000
740,000 550,000 0 1,290,000 0 420,000 420,000 1,710,000 280,000 120,000 35,000 0 140,000 575,000 660,000 475,000 1,135,000 1,710,000
Total Current Assets
Property, plant and Equipment New branch in Ha Noi
Total Fixed Assets and Others TOTAL ASSETS
Account Payable Advances from customers Salaries Payable Accrued Liablities Tax payables
Current Liablities
Owner’s equity Retained Earning
Total OE and Retained Earnings TOTAL LIABILITIES & OE
Attachment No 7.
Financial Ratios Analysis
NTH WEDDING CONSULTANTS COMPANY
NO ITEMS
2004
465,000
2005
785,000
2006
1,085,000
2007
1,315,000
2008
1,290,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Current Assets Current Liabitities Current Ratios (3)=(1) : (2) Cash flow from Operations Cash flow from Operations Ratio (5) = (4) : (2) Total Sales Average Account Receivables Receivables Turnover Average No of Days AR Outstanding Average Total Assets Total Asset Turnover =(6) : (10) Gross Profit Gross Margin (12) : (6) EBIT Margin Before Interest and Tax (14) : (6) Net Income Profit Margin (16) : (6) ROA =(EBIT)/Average Total Assets Average Owner's Equity Solvency =(Assets/ Equity) ROE= (EBIT)/ Average Owner's Equity
135,000 3.44 55,000 0.41 800,000 250,000 3.20 114.06 465,000 1.72 600,000 75% 250,000 31.25% 90,000 11.25% 53.76% 240,000 1.94 1.04
265,000 2.96 360,000 1.36 1,200,000 275,000 4.36 83.65 625,000 1.92 900,000 75% 400,000 33.33% 280,000 23.33% 64.00% 240,000 2.60 1.67
465,000 2.33 480,000 1.03 1,600,000 350,000 4.57 79.84 935,000 1.71 1,200,000 75% 560,000 35.00% 380,000 23.75% 59.89% 240,000 3.90 2.33
465,000 2.83 380,000 0.82 1,800,000 425,000 4.24 86.18 1,200,000 1.50 1,350,000 75% 620,000 34.44% 430,000 23.89% 51.67% 240,000 5.00 2.58
575,000 2.24 495,000 0.86 2,000,000 500,000 4.00 91.25 1,512,500 1.32 1,500,000 75% 690,000 34.50% 485,000 24.25% 45.62% 450,000 3.36 1.53