- Pecans FMCG holdings is a company that was established as a limited liability partnership. The name if the company is an acronym for the three partners, namely Peter, Cathy and Naphtali, who contributed to the establishment of the company. The initial FMCG are initial which means fast moving consumer goods that the company deals with. The company will be an exceptional and unique firm which will be guided by the sole purpose of filling the gap that exists in the supply chain distribution of many local organizations. The organizational culture is built with an objective to facilitate and provide efficient ways for clients to order their products from distribution centres. Since the organization is a start-up business venture, it shall be composed of few employees it will be composed of one chief executive officer and other three board members who include the two partners. Managers who will also double as programmers will also be among the executive management team in charge of different departments in the company.
- Financial reports
Details amount in US$
Capital contributions from partners 500,000
External borrowing from banks 300,000
Directors savings 200,000
Total amount 1,000,000
The company has projected to have one million U.S. dollars as their projected start-up capital, which shall be used in the establishment of the company
List of start-up expenses
Particulars quantity cost per unit ($) total cost ($)
Office rent - - 900
Water and electricity - - 500
Chairs ` 10 50 500
Desk 7 80 560
Computers 10 500 5000
A server 1 500 500
Mobile phone 10 70 700
Software packages 5 40 200
Internet cabling - - 400
ETR machine 1 10,000 10,000
Transport - - 500
Installation - - 500
Employees wages - - 1,000
Government license - - 1800
Other office supplies - - 800
Total expenses 14,100
12 month profit and loss projection
Pecans FMCG holdings Projected Profit and Loss Account showing statements a year
April ($) August ($) December ($)
Clients 3 6 10
License fee (annual fee) 400,000 600,000 800,000
License revenue 1,200,000 3600,000 8,000,000
Support & Maintenance (annual) 80,000 100,000 150,000
Clients 3 6 10
Total support & maintenance revenue 240,000 600,000 1,500,000
Less Total cost of revenue (400,000) (200,000) (600,000)
Gross profit 1520,000 4700,000 9850,000
Expenses
Rent 300 300 300
ATR machine 10,000 8,000 12,000
Power 0 0 0
Internet capabilities 0 0 0
Trainers 27000 27,000 27,000
Advertising 10,000 11,000 10,000
Server 4,000 7,000 7,000
Mobile phones 5,000 5,000 5,000
Stationary 1,000 1,000 1,000
Certificates 9,000 10,000 15,000
Salaries (employees) 4 6 10
Salaries 100,000 400,000 1000,000
Taxes 1,000 1,000 1,500
Miscellaneous 3,000 4,040 4,500
Depreciation 1,000 1,000 2,000
EBIT 30,040 31,890 44,000
Interest on borrowing 800 800 800
TOTAL EXPENSES 202,100 508,080 1, 130,100
Net Profit 1317900 4191920 8719900
- Target customer information
The company targets fast-moving companies that are interested in improving their supply chain. It mainly targets the youth owned standard due to their positive perception of technology. Students in colleges and universities will also be targeted as they also need to buy products from a different store with many conveniences. Large and small enterprises will become dependable clients for the firm as it will be selling the services to them hence benefiting their operations in the market.
- The firm shall be located within the central business unit; this will give the clients an easy proximity to the firm. The firm shall be located on the second floor of the building. This ensures that the cost of rent is minimized since the ground floor has a relatively high rent attached to it. In the town there is a high population, which will provide the company with more business to the firm. To achieve competitive advantage, the company will create unique services that will ensure that the company shall have a competitive advantage over the competitors. Company cost shall be shared by the three partners with the proportion of their capital contributions.
