High Bury Traders Partnership

Compiled by:
Andreas Gideon 212020498
Shikomba Erastus 212000640
Muleka Nikson 211048917
Hauiku Enos 2110!14"8
#$% Ga&usab 2010!!2!2
Lecturer ' Mr %u (lessis
Contact details
(hone ' 061 68462!
E)mail address ' hi*hbur+,*mail-.om
(ostal address ' /ri0ate #a* 788"! 1indhoek
2esidential address ' Sam Nu3oma Street4 E25 2909
Date of Plan: 3 October 2014
Highbury Traders Partnership Page 1
Table of contents

ontent Page !o:
1. Summary....................3-4
2. Product plan...4-5
3. Marketing plan5-7
4. Operational plan.7-8
5. Management plan..8
. !inancial plan"-13
7. #ppendi$14
Highbury Traders Partnership Page 2
1. Summary
High bury Traders will commence operation as soon as the business plan
has been approved and the necessary capital is acquired to start with the
operations, and will start to provide products derived from soft and hard
paper to news papers and magazines publishers, Books firms, Individuals
firms, Schools and tertiary institutions among others There e!ist an
opportunity that will enable Highbury Traders to succeed, due to a lack of
local competitors in such area of operation "ue to a huge demand
e!istence and that is e!pected to boost in near future it will result in high
return on investment The prices will be determined by cost#oriented B
pricing strategies The company$s e!pected sales during the first year in
operation is %& ' ()* +++, mounting at an e!pected rate of ,+- and more
annually
The ob.ectives of Highbury Traders are/
To be the main supplier of soft and hard papers in the target
market
0im to targeted sales and e!pand the sales revenue by ,+- by the
second year of operation
1!pand the business at an international level in an optimum
number of ,+ years to come
0cquire more customers and occupy a large market share by the
second year in operation
Increase the net profit significantly by year 2
1!pand our product line gradually, based on customer request
Highbury Traders is a partnership owned by si! partners, namely, 3r
0ndreas, 3r Shikomba, 3r Haufiku, 3r 4awusab, %ekwaya and 3r
3uleka will be staging as the manager in 5indhoek, before enabling
one of the members to take over
Highbury Traders Partnership Page 3
2. Product plan
Highbury Traders will be a producer specialized in the production of soft and
hard paper
The Products
The product will be offered in different quantities based on customer$s
request, and will essentially be made from two different sources/
, The products will be made from the raw#material 6wood7 that will be
process into the finish product
' There is another option considered in the production of the product since
there is a restriction placed on the amount of wood that must be cut down
8n this basis, the product will be made from the recycled papers
The business will offer products made from wood or recycled paper
Hard paper products
, 0) printing paper sheets
' "rawing posters of all sizes
2 %ote books pages and te!t book pages
) 9apers suitable for newspapers
( 9hotos hard papers
: ;layers
Soft paper products
, Tissues
' Toilet paper
2 Salivates
Highbury Traders Partnership Page 4
The Industry of operation for this type of business will be the manufacturing
industry< since it involves the production of product derive from papers There
are rarely no producers that are vested at producing materials derive from
paper in %amibia as all manufacture of such products are from abroad
3. MARKETING PLAN
Marketing Mix
The marketing mix is probably the most famous marketing term Its elements
are the basic, tactical components of a marketing plan This is also known as
the Four P's, the marketing mi! elements are price, place, product, and
promotion.
Product: The products to be offered by Highbury Traders are soft and hard
papers products
Price: The products price will be determined by using the cost#oriented
pricing strategy This strategy takes cost of producing the product and the
markup
Promotion: The product will be advertised through media 6such Internet, T=
channels, >adio stations, %ewspapers7 and billboards 3ore focuse will be
put at making the products known to the target market at events 6such as
trade fairs and shows7 This will enable the products to be perceived in the
customers mind
Place: "ue to the consideration of the target market and cost, the products
will be manufactured at an e!isting business area which will be in %amibia,
5indhoek %orthern industry ne!t to 5indhoek cash and carry, in order to be
Highbury Traders Partnership Page 5
Production
Costs
Mark-up Price
(lus E6ual
closer to its customers and reducing cost incurred especially transportation
cost
Competitie !dantage:
Highbury Traders is aimed to have a competitive advantage over its
competitors by/
9roducing range of products, that local customers will receive goods on
time at all times
1nabling customers to specify the type of product they want and in a
standard quantity
?ompeting with few manufacturers due to lack of competitors in this
market of operation
8ur products are targeted at newspapers and magazines publishers, Books
firms, Individuals firms, Schools and tertiary institutions among others The
customers mentioned above are the main target, and does not mean the rest
that are not listed are not part of Highbury Traders customers, since the ;irm
will be able to supply to any individual or businesses willing to purchase the
products
Highbury Traders is targeting to occupy a market size of more than )*- in
the manufacturing industry of soft and hard paper There is a number of
competitors who targets this industry in %amibia but all their production plants
are only found or they are originated from South 0frica
Marketing ealuation "S#$T !nal%sis&
Strength #eaknesses
8ffering recyclable paper
@ack of competition
8ffer variety of sizes
?ost of raw materials
"ifficulties in finding start#up
capital from the financial
Highbury Traders Partnership Page 6
?overage country wide
0bility to supply in small and
large quantities 6consignment7
institutions
$pportunities Threats
1!porting to other neighboring
country
8pening more branch in other
regions
%ew products from abroad
%ew competitor entering the
market
4. OPERATIONS PLAN
This outlines how our business would service the clients$ costs effectively
3anufacturing and "evelopment plan<
5e have a suitable contractor currently based in South 0frica, which mean
they produce paper through the use of certain strategies and they
distribute to us
9roduction inputs are machinery and equipments
Capacit%
9eriods Aear , Aear '
Buantity in
tons
'+++ 2+++
3aterial 9,,
%& ,(+ per kg
)++++ kg :++++ kg
3aterial 9',
%& ('+ per kg
(++ kg C(+ kg
0verage price %& *(+ %& *D(
Total Enits ,2( +++ ,)( +++
Highbury Traders Partnership Page 7
9roduce
. MANAGEMENT PLAN
0ndreas will act as the managing director The fact that Highbury Traders is a
small business that will start operating, this will enable the employees to
assist and share in management duties and decision making It will be of
most important since the employees are the ones involved with the tasks at
hand The minimum e!perience required for all the Highbury Traders is at
least a Three years e!perience and suitable candidates should have the
ability and knowledge according to the .ob assigned See the appendi! for the
?=s of key personnel
'ear ( 'ear )
3anager &'),+++ &2+,+++
9roduction workers &,*,+++ &'(,+++
0dministration workers &,',+++ &'),+++
Total 9eople ) (
Total Pa%roll *+,,--- *./,---
!. "INAN#IAL PLAN
The High bury Traders will require a start#up capital of appro!imately
%&(++ +++, and this will be derive from different sources, namely, loans
from financial institution, own capital and support from the government
since the government is willing to assist upcoming business in such
industries of operation through the development Bank of %amibia
The financial plan depends on important assumptions, most of which are
shown in the following table as annual assumptions
Highbury Traders Partnership Page 8
0eneral !ssumptions
'ear ( 'ear )
!nnual rates , '
Short1term loan
interest rate
,D- ,D''-
2ong1term loan
interest rate
,(- ,:+(-
Tax rate ,:- ,:-

3reak1 een !nal%sis
This break#even analysis shows that Highbury Traders has budgeted fi!ed
costs and pro.ects sufficient sales to maintain good cash flow balances
This pro.ection is based on two production lines
The essential insight here is that Highbury Traders pro.ected sales levels
will be running comfortably above the break#even point
Break#even 0nalysis
3onthly >evenue Break#even %& )' 2(+
0ssumptions/
=ariable ?ost per unit %& ,)D
1stimated 3onthly ;i!ed ?ost %& '( (*C(+
P4$56CT67 89C$M6 ST!T6M69T F$4 '6!4 (
Highbury Traders Partnership Page 9
%& %&
Total sales , ,)C (++
?ost of sales :' :++
purchases :' :++
4ross 9rofit , +*) D++
@ess/ 1!penses )2' C+2
0dvertising 2( +++
Sales promotion * +++
Insurance '(+(+
Telephone ,' +++
>ent paid ,:* +++
5ater and electricity 2' '(2
Interest on loan )* +++
8ffice e!penses ,* (++
5ages and salaries () +++
>egistration fees : +++
@egal fees : +++
>esearch and "evelopment ,D D++
%et 9rofit before ta! :(' ,DC
@ess/ Ta! 6,,C 2D:7
%et 9rofit after ta! (2) *+,
Highbury Traders Partnership Page 10
P4$56CT67 3!2!9C6 SH66T !T TH6 697 $F TH6 F89!9C8!2 '6!4
9*
9*
!SS6TS
Fixed !ssets:
:(; :--
3achinery ,:+ +++
1quipment D( :++
=ehicle ,(+ +++
Trademark ,* +++
@and and Building ,D+ +++
Current !ssets:
,)( )-(
Stock
?ash ,') (+,
Bank 'D: C++
Total !ssets (
-;, <-(
1BEITA 0%" @I0BI@ITI1S
6=uit%:
.;, <-(
8wn capital '++ +++
%et profit (2) *+,
9on1Current lia>ilit%
;-- ---
Highbury Traders Partnership Page 11
@ong term loan 2++ +++
Total e=uit% and lia>ilities (
-;, <-(
High >ur% Traders Cash Flo? Statement

$pening >alance
?ash receipts/
?ash sales
Interest
5anuar% Fe>ruar% March
2' +++ )* ('( CD ,',
D( :'(
) +++
,+C (C*
) +++
,', +'(
) +++
Highbury Traders Partnership Page 12
Total cash receipts
?ash purchases/
Stock purchases
8perating costs
>ent paid
Total cash dis>ursements
?ash IncreaseF"ecrease
Closing >alance
// :)+ ((( +.< ()+ -)+
:' :++
: (++
,) +++
:: D*'
: (++
,) +++
C, :C,
: (++
,) +++
<; (-- <-/<) /) (.(
,: ('( 2+ (D: 2' *()
,< +)+ ./ ()( ((( /.+
.. APPEN$I%
C@ of the partners:
9ame 0ndreas 4awusab 3uleka Haufiku Shikomba %ekwaya
0ender 3ale 3ale 3ale 3ale 3ale ;emale
Marital
Status
1ngaged 3arried "ivorced ?omplicate
d
relationship
5indowed Single
Highbury Traders Partnership Page 13
!ge ') '' ', ', ', ''
Aualification
"s&
3aster
"egree in
;inance
3aster
"egree in
0ccounting
"egree in
Business
0dministration
"egree in
H>
"iploma in
business
administration
"iploma in
Business
0ccounting
5o> Title ;inancial
3anager
3anaging
"irector
;inancial
0ssistance
Secretary Sales
>epresentativ
e
Sales
>epresent
ative

Highbury Traders Partnership Page 14