Final Report

Submitted to:
Sir Fahad Zuberi

BBA 8-D

Group Members:

Mohsin Ali-(1311269)

Muraad Ali- (1546120)

Ishaq Nausherwani-(1411230)

Saad Hussain-(1411322)

Faleh Ahmed-(1311218)
This document is strictly confidential & belongs to
Team KITABIST

Contents
............................................................................................................................................. 3
STATEMENT OF CONFIDENTIALITY .................................................................................. 3
1. Executive Summary ............................................................................................................. 5
2. Company Description: .......................................................................................................... 6
Name of Company: .............................................................................................................. 6
Office Address: ................................................................................................................... 6
Description: ........................................................................................................................ 6
Mission:.............................................................................................................................. 7
Company Tagline:................................................................................................................ 7
Our Motto: .......................................................................................................................... 7
Organizational Structure ....................................................................................................... 7
Shareholder Names, Percentage Shareholding & Cash Investment: ............................................ 7
Services: ............................................................................................................................. 8
Long Term Aim of the Business: ........................................................................................... 9
Objectives: .......................................................................................................................... 9
SWOT Analysis ................................................................................................................... 9
3. Market Analysis with Research & Development: ....................................................................10
Target Market: ....................................................................................................................11
Market Trends: ...................................................................................................................12
Competitive Advantage: ......................................................................................................12
4. Marketing and Communications Strategy ...............................................................................13
Marketing Strategy..............................................................................................................13
Marketing Mediums: ...........................................................................................................13
Marketing Strategies and Cost Strategies ...............................................................................14
Implementation Plan ...........................................................................................................14
BTL: .................................................................................................................................15
5. ORGANIZATIONAL PLAN: ..............................................................................................15
Partners information ............................................................................................................16
Organizational Structure ......................................................................................................16
Cheque signing authority .....................................................................................................17
Staffing..............................................................................................................................17
Salaries ..............................................................................................................................17
Service Plan: ......................................................................................................................17

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Membership Plan for Renting Books: ....................................................................................17

Simple Book Buying: ..........................................................................................................17
Website Layout:..................................................................................................................18
6. Supply Chain Planning: .......................................................................................................19
Assessment of Risk: ............................................................................................................19
Measuring Parameters: ........................................................................................................19
7. Financial Projections ...........................................................................................................20
Capital Budgeting: ...........................................................................................................20
Key Assumptions: ...........................................................................................................20
Operational Expense: .......................................................................................................21
Profit & Loss Accounts........................................................................................................22
Expected Sales Forecast: ..................................................................................................22
Depreciation ...................................................................................................................22
Forecasted Income Statement ............................................................................................23
Projected Balance Sheet ...................................................................................................24
Cash Flow Statement .......................................................................................................25
8. Exit Strategy: .....................................................................................................................26

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STATEMENT OF CONFIDENTIALITY

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1. Executive Summary

The idea of KITABIST is based on the current market situation of book selling industry.
Current market trend indicates that reading books online is increasing in Pakistan. KITABIST
have tried to use this trend as an opportunity of creating new business by turning online
readership into physical reading habit. Idea behind creating this opportunity into business is
that people these days read books online by paying subscription fee to the online book
websites. So, we did our research and come to know that people still like to read books
physically but have issues finding books and paying high price for them. KITABIST would
be a platform to cater this issue through providing our customers with physical books which
they want at their door step ordering us at our website.

Our mission is to bring book readers back to the habit of reading books physically on cheaper
prices and without getting into trouble of going out of house in search of books and
delivering them at their door step. For succeeding in our mission we have chosen our target
market as SEC A, SEC B and SEC C of age belonging to 16 years – 50 years. Our Direct
Competitor is "The Readers Club" who only rents new and expensive books. Our indirect
competitor is "The Novel Idea" by "Junaid Akram" as it is the only swapping library where
readers don't have to pay for book but rather have to swap a book for a book. Therefore,
KITABIST is tapping into a market with a lot of potential customers.

KITABIST will be promoted by dedicated team of young and enthusiastic SZABIST

graduates who have strong will to establish their business well. The promoters are:

 Mohsin Ali is the CEO, pursuing majors in Marketing and has experience of working
in well reputed organizations in Brand Management and Corporate Communications
department
 Murad Ali is the Inventory & Marketing Manager, pursuing majors in Marketing and
has handled several projects professionally at different levels of academics and
corporate
 Faleh Ahmed is our Logistics Manager, pursuing majors in SCM and has been
working as a distributor side by side with his education
 Saad Hussain is the Finance Manager, pursuing majors in Marketing and having
expertise in Finance courses.

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 Ishaq Nausherwani is the IT Manager of our business who has good grip over IT
related tasks and is good with website handling

Financial projections of KITABIST for the first five years of the business are:
Year 1 Year 2 Year 3 Year 4 Year 5
(Rs.) (Rs.) (Rs.) (Rs.) (Rs.)
Sales in
1,545,600 1,870,176 2,262,912 2,738,125 3,313,131
Rupees
Cost of Goods
100,800 310,080 341,088 375,197 412,716
Sold
4,015 5,186 217,326 446,026 706,339
Profit

For increasing our promoting our business we will be using different marketing tools such as
Branded SMS, Online Social Media Marketing, BTL activities in different educational
institutions and will contact different bloggers who will tell our target audience about our
services and our business. In future we will also contact different book stores to bring their
business on board and collaborate with us in our expansion. As, we are going to have just one
office in the beginning but as we will grow we will have our offices at different locations
which will be established according to districts i.e. North, South, East, West and Central.

2. Company Description:

Name of Company:
KITABIST

Office Address:
Flat # C-12, Farah Center, Block 13-C, Gulshan-e-Iqbal, Karachi

Description:
The company will be benefitting customers who love reading books physically rather online
and they are tired of searching books in market at expensive rates. Customers will be able to
order books through our website and we will be delivering those ordered books at their
homes at cheaper prices. Customers will be able to buy and rent books.

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Mission:
"We provide our customers with convenience of reading at their doorstep"

KITABIST's mission is to revive people's habit of reading books physically and have a
tension free life by avoiding the hecticness of searching books in book stores and buying
them expensively. Our service will be convenient, valued and one step solution for our
customers

Company Tagline:
"Spend Less, Read More"

Our Motto:
"Easy, Inexpensive, Quick"

Our motto is based on the type of our service that we are providing to our customers.

Organizational Structure:

CEO
Mohsin Ali

Marketing/Inventory Logistics Manager Finance Manager IT Manager

Manager
Murad Ali Faleh Ahmed Saad Hussain Ishaq Nausherwani

After startup, the business management team will solely depend on the Start-up Owners. It
would be last step of these owners to create a new designation above them.

Shareholder Names, Percentage Shareholding & Cash Investment:

KITABIST is a private company which is registered as a partnership with the equal
percentage ownership mentioned in the table below.

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Percentage of Cash investment to

Shareholders name shares date

Mohsin Ali 20% 600,000

Murad Ali 20% 600,000
Faleh Ahmed 20% 600,000
Saad Hussain 20% 600,000
Ishaq Nausherwani 20% 600,000
Total 100% 30,00,000

 Mohsin Ali is the CEO, pursuing majors in Marketing and has experience of working
in well reputed organizations in Brand Management and Corporate Communications
department
 Murad Ali is the Inventory & Marketing Manager, pursuing majors in Marketing and
has handled several projects professionally at different levels of academics and
corporate
 Faleh Ahmed is our Logistics Manager, pursuing majors in SCM and has been
working as a distributor side by side with his education
 Saad Hussain is the Finance Manager, pursuing majors in Marketing and having
expertise in Finance courses.
 Ishaq Nausherwani is the IT Manager of our business who has good grip over IT
related tasks and is good with website handling

Services:
The idea of KITABIST is based on the current market situation of book selling industry.
Current market trend indicates that reading books online is increasing in Pakistan. KITABIST
have tried to use this trend as an opportunity of creating new business by turning online
readership into physical reading habit. Idea behind creating this opportunity into business is
that people these days read books online by paying subscription fee to the online book
websites. So, we did our research and come to know that people still like to read books
physically but have issues finding books and paying high price for them. KITABIST would
be a platform to cater this issue through providing our customers with physical books which
they want at their door step ordering us at our website.

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We here at KITABIST are providing our customers with a website where they would just
have to type the name of their desired book/books or they can scroll down the page to
discover new books as per their interest. They will place there chosen books into the buying
cart, after ordering our customers will need to select that whether they are taking books on
rent or buying them. Later after ordering, these books will be delivered to them at their door
step.

Our aim is to provide our customer with convenience keeping in our mind their passion and
love for reading. Customers will definitely like the idea that how books that were too
expensive before are now under their range. It's like providing them with an experience that
library is coming to them.

Long Term Aim of the Business:

The long term aims of KITABIST’S are:
 To establish the company’s esteemed position in book reading customer's mind.
 To expand by taking along different cheap book stores with us.
 To be the customer’s top of mind recall.
 To explore new horizons of customer satisfaction through understanding their needs.

Objectives:
Initially, we will have our business limited to just one physical office where books will be
stored. Books will have different genres which will include history, sci-fi, romantic, horror,
fiction, non-fiction and novels. These books will be sold or given on rent. In future, we will
also be expanding our business by bringing different book stores to our platform which will
not be branded but will be selling such genres books at cheaper prices. These book stores will
be placed orders through us and will be used to fulfil customers demand.

SWOT Analysis
Strengths
 Very less competition.
 Convenient for customer
 Low End Vendors
 Low Cost of books, higher profits
Weaknesses
 Books can be 2nd hand/poor
condition
 No physical library
 Less number of deliverymen

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 No big investment required

Opportunities Threats
 Ability to gain potential  Customer can default payments
customers  Natural Calamity (fire etc)
 Huge target market  Vendor may refuse to sell books
 Package for all type of SECs  Copyright issues may occur
 Bigger window for growth  Website may crash

3. Market Analysis with Research & Development:

We got the following results from our market research:

 Total numbers of respondents were 100.

 Out of 69 respondents 61% preferred reading physical books.

Do you prefer reading books online or physically?

%12 Physically
Online
%27
%61 Both

 As most of the people were likely to pay between 500-1500 PKR for new books.
Therefore we kept the prices even lower than this range and the exact pricing we
will offer in the stall.

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Spending on buying books?

%6 0-500 PKR
%25 %34 500-1500 PKR
1500-3000 PKR

%35 3000-4500 PKR

 Majority of the people would like to get a discount on another purchase of a book.
Therefore to increase our sales we will offer discount on purchasing more than
book at a time to our customers.

Yes
%25
No
%57 May be
%18

 As majority of the people chose trending books. Therefore we offered trending

and internationally best-selling books in our BTL and we will be offering such
books in our business stall too.

Choosing a book?

%7 Trending books
%22 Friends/Peers
%44
Finding Yourself
%27 Whatever you feel like

Target Market:
Target market of KITABIST is men, women and youth from 16 to 50 years of age belonging
to all the Social Economic Class (SEC) A, B and C. People in general spend less on

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purchasing non-textbooks in our society as overall market is price conscious. So providing

best contents at cheapest price will motivate people of different age group to spend more to
acquire their desired books. Books as a product can grab the interest and attention of any age
group person between 16 years and above may have so this business will have massive
market penetration.

Geographic Location

Country Pakistan

City Karachi

Density Urban

Market Trends:
It’s easy to find and read books online but there are some complications which we came to
know after conducting our research;

 Stress on eyes due to constant exposure of screen.

 Reading from screen doesn’t give the touch to the readers which the physical books
give.
 Readers deviate easily while reading from the screen.

Due to the mentioned complications now reading physical books have found its pace again
but its finding would require enough time. Therefore for saving time, customers subscribe
online book stores to grab desired books at their door step. But for this, customers have to
pay certain amount of money to the book stores.

Competitive Advantage:
Through booking online, KITABIST is;

 Offering 1st and 2nd hand books on cheap prices.

 Providing customer’s desired books on rent at their door step.
 Offering cheapest reading packages for its customers.
 Enthusiastic and friendly staff.

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4. Marketing and Communications Strategy

Marketing Strategy
Our strategy is to serve or target market by fulfilling their demands. We took off with a BTL
activity at SZABIST as our "test market" which was our book selling kiosk and an
information desk about our business which had customers guiding member for helping them
with knowing our business and taking feedback regarding our service.
A strong integrated marketing communication mix will be used to gain customer attention
and in-house marketing will be the accurate punch bag, followed by print ad. As soon as our
potential customers will start talking about our service other broader mediums of marketing
can be used. It's our faith, that the "word of mouth" is the best form of marketing. By
providing our customers with the best price and convenient book store service news about our
business will spread like wildfire. Therefore, we believe that the accurate execution of our
startup and giving the right amount of concept will be the game changer for us.
We will further build our brand, by selling our surprise best sellers among the book lovers in
the future.The marketing of KITABIST will be done through different specialized companies
offering their specialized marketing services. For Online marketing we will be contacting
"The Business Marketeers".

Marketing Mediums:
 Social media
 Mobile Marketing
 Word of mouth

 User generated content i.e. bloggers & reviews

 Alliance with different school/colleges/university
Public relations
libraries
 BTL activities in universities & schools

Mobile marketing  Branded SMS (400,000 SMS)

Social Media  Social media marketing through Facebook and Instagram

Marketing & Snapchat

Word of mouth

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Marketing Strategies and Cost Strategies

Cost
Branded SMS (200,000 SMS) Rs. 70,000
Rs.16,000 for 2
BTL activities in universities, college & schools
activities
Rs. 10,00 for 2
User generated content i.e. bloggers
blogs
Website and Social media marketing through Facebook and
Rs. 25,000
Instagram & Snapchat

Implementation Plan

Time Duration Activity Marketing Tool

Research
Reveal
Pre-launch Marketing SMS & Online Marketing
(Jan’19-Mar’19) Branded SMS
Blogs
Grand Opening
Location based
Launch branded SMS
(Apr’19- Alliance with
Sep’19) schools
(Rewards to Social media and text marketing
high achievers)
User generated
content-
Reviews, Press
Release

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Post launch Branded SMS Text marketing

(Sep’19-Dec’19)

BTL:
The BTL (below-the-line) activity was conducted in 100 Campus in Szabist on 3rd May, 2017
which was Thursday in the 100 garden. We setup our kiosk with banners and standees to
engage audience and spread awareness about our service. We offered 31 famous books of
different categories and genres to the audience which they liked and sold 15 books for Rs.
250 each. All the unsold books were returned back to the supplier. We also did social media
campaign by posting BTL activity pictures and spreading awareness through our social media
page for social media marketing to attract online users. We mostly received positive
feedbacks.

5. ORGANIZATIONAL PLAN:
KITABIST is a Private limited partnership venture.

All decisions to be carried forward after the mutual consent of all the Partners

Following are the major responsibilities that are to be handled by each partner.

1. Overall management of venture

2. Marketing activities and campaigns

3. Finances and accounts maintenance

4. Getting right books at fair price from the vendors

5. Managing online and web interaction to customers

6. Customer Service and delivery

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Partners information
Name Share % Cash investment(Rs.)
Faleh Ahmed Yousufi 20% 600,000
Ishaq Nausherwani 20% 600,000
Mohsin Ali 20% 600,000
Muraad Ali 20% 600,000
Saad Hussain Qureshi 20% 600,000

KITABIST will be promoted by dedicated team of young and enthusiastic SZABIST

graduates who have strong will to establish their business well. The promoters are:

 Mohsin Ali is the CEO, pursuing majors in Marketing and has experience of working
in well reputed organizations in Brand Management and Corporate Communications
department
 Murad Ali is the Inventory & Marketing Manager, pursuing majors in Marketing and
has handled several projects professionally at different levels of academics and
corporate
 Faleh Ahmed is our Logistics Manager, pursuing majors in SCM and has been
working as a distributor side by side with his education
 Saad Hussain is the Finance Manager, pursuing majors in Marketing and having
expertise in Finance courses.
 Ishaq Nausherwani is the IT Manager of our business who has good grip over IT
related tasks and is good with website handling

Organizational Structure:
CEO
Mohsin Ali

Marketing/Inventory Logistics Manager Finance Manager IT Manager

Manager
Murad Ali Faleh Ahmed Saad Hussain Ishaq Nausherwani

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Cheque signing authority

The authority of signing the check is granted to two persons that is based on total amount of
cheque. Saad Hussain (Finance Manager) can sign a if the amount of cheque is under
Rs. 50,000 but if the amount exceeds Rs. 50,000 signature of Mohsin Ali (CEO) will be
required.

Staffing
Initially we will be hiring a delivery rider to deliver and collect the books across the city.
Later if the demand increases of our service more riders will be recruited and work will be
divided among the riders based on the areas or territories.

Salaries
Salary of Rs. 15,000 per month will be given to the rider whereas partners will be working on
profit sharing.

Service Plan:
The services would be initiated once a customer contacts us through our website. Customer
will sign up online by filling out necessary information to make an account. Once the account
becomes verified by our administrator, the customer would be allowed to use the services.

The customer would buy or rent books using our packages and offers. When the customer
initiates an order, it will get confirmed and delivered to his address in 2 to 3 working days.
Mode of payment would be cash on delivery (COD).

Membership Plan for Renting Books:

Membership Duration Limit per month Books out at a Cost
time
Bronze 1 Month Unlimited borrowing 1 book at a time Rs.600
Silver 1 Month Unlimited borrowing 2 books at a time Rs.800
Gold 1 Month Unlimited borrowing 4 books at a time Rs.1000
 Free delivery and pickups all over Karachi.
 In case of any damage done to the books, theft or late return, the account of that
customer will be frozen until the imposed penalty is paid.

Simple Book Buying:

Selling price will be fixed Rs.300 per book for all categories.

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Service Flow Chart:

Customer

Delivery Kitabist

Inventory

Website Layout:

Welcome, Please Sign In

Email:

Password:

Forgot Your Password? Click here. Login

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Suppliers:

Name Location Contact Supplies

Abbas Opposite expo centre, neat 0344-2434655 Books
bait-ul-mukarram masjid
Aslam Urdu Bazaar 0333-3933124 Books

6. Supply Chain Planning:

Our customers will place orders through our website in which they have to make their
member login and IDs and select their membership plan. After which they will be able to
place orders accordingly. After getting order we will get it from our inventory or if book is
not available we will be contacting our vendor for the book and then will collect book from
vendor and will deliver it to the customers.

Assessment of Risk:
There are many risks which are as follows:

 As we are offering pirated versions as well. Therefore there are chances of copy right
issues which might impact our business.
 There is no as such tough barrier to enter into this business. Therefore someone else
can also sell the same idea.
 2nd hand books might have marked etc. on its pages which could result in changing
customer’s purchasing will.
 Due to no existence of physical library, it will be much harder to gain the trust of a
customer.
 As there is no detailed research work of customer demands and market analysis, there
might be risks of not achieving desired target.
 Local competitor like “Readers club Karachi” already have majority of the market
shares. Therefore gaining market share from established competitor will put our
business at risk.

Measuring Parameters:
 Inventory Management:

Initially, we would have 40 different book categories and 50 books in each category, making
total inventory of 2000 books.

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The Inventory Manager would be responsible for managing inventory based on daily orders.
An inventory sheet will be maintained with set inventory par levels. As soon as the inventory
falls below the par level, the Inventory Manager would be responsible for making purchases.

 Sales Control:
Daily sales record will be maintained. On sale of each unit, the sale invoice would be
issued to the customer. At the end of the day, the sale invoice retained would be
handed over to the finance department who will record unit and price of books sold in
the sales record.

7. Financial Projections
Capital Budgeting:
Account Head Year 1 Details
Security Deposit 250,000
Furniture 70,000 Chairs + Tables + Shelves
Generator 106,000 6.5KVA
Air Conditioner 65,000 1.5Ton + installation
Computers 100,000
Fans, LEDs, 8LEDs @200 + 2 Fans
7,600
Lightening @3000
Motorcycle 52,000 New + Registration
Website Development 500,000
Telephone Set 800
Printer 10,500
Total 1,161,900

Key Assumptions:
Items Assumption(s)
Sales Increase 17.35% per year
Increase in Purchases 10% per year
Increase in Employee Salary 10% per year
Increase in Utilities 10% per year
Increase in Rent 10% per year

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Increase in Closing Inventory 10% per year

Increase in Packaging Cost 10% per year
Generator & Bike Fuel & Maintenance 10% per year Increase
Depreciation: 15% Diminishing Balance Method.

Operational Expense:
Account Head Monthly Yearly
Office Supplies 1,000 12,000
Rent 15,000 180,000
Salary Exp 15,000 180,000
Generator Exp 3,000 36,000
Electricity 30,000 360,000
Miscellaneous Exp 1,000 12,000
Packaging 980 11,760
Staff Entertainment 1,000 12,000
Internet 3,000 36,000
Bike Fuel & Maintainence 8,000 96,000
Paint, Soft Board, Clock 15,000 -
Server Subscription 2,000 24,000
Domain - 2,500
Email Setup 500 6,000
PTCL Line Rent 1,000 12,000
Marketing & Advertising 33,333 400,000

Total 129,813 1,380,260

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Profit & Loss Accounts

Expected Sales Forecast:

Expected Sales 2019 2020 2021 2022 2023

No. Of Expected 1,680 1,848 2,033 2,236 2,460
Subscribers
Avg. Per Subscriber 800 880 968 1064.8 1171.28
Price
No. of Expected Sales 672 739.2 813.12 894.432 983.8752
Avg. Per unit Price 300 330 363 399.3 439.23
Revenue in Rs. 1545600 1870176 2262913 2738125 3313131

1 Day = 5 Subscribers and 2 Buyers

1 Week = 35 Subscribers and 14 Buyers

1 Month = 140 Subscribers and 56 Buyers

1 Year = 1,680 Subscribers and 672 Buyers

Depreciation
Years Total Fixed Depreciation Accumulated
Assets Depreciation
1 403,500 60,525 60,525
2 342,975 51,446.25 111,971.25
3 291,529 43,729.3125 155,700.5625
4 247,799 37,169.91563 192,870.4781
5 210,630 31,594.42828 224,464.9064

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Forecasted Income Statement

Income Statement
2019 2020 2021 2022 2023
Sales 1,545,600 1,870,176 2,262,913 2,738,125 3,313,131
Cost of Goods Sold
Opening Inventory 0 199,200 219,120 241,032 265,135
Cost of Purchase 300,000 330,000 363,000 399,300 439,230
Closing Inventory 199200 219120 241,032 265,135 291,649
COGS 100,800 310,080 341,088 375,197 412,716
Gross Profit 1,444,800 1,560,096 1,921,825 2,362,928 2,900,415
Less Operating Expense
Packaging 11,760 12,936 14,230 15,653 17,218
Depreciation 60,525 51,446 43,729 37,169 31,594
Employee Salaries 180,000 198,000 217,800 239,580 263,538
Paint, soft board, clock 15,000 0 0 0 0
Rent 180,000 198,000 217,800 239,580 263,538
Generator & Bike Fuel & Maintenance 132,000 145,200 159,720 175,692 193,261
Staff Entertainment 12,000 13,200 14,520 15,972 17,569
Office Equipment 12,000 12,000 12,000 12,000 12,000
Domain 2,500 2,500 2,500 2,500 2,500
E-mail Setup 6,000 6,000 6,000 6,000 6,000
Server Subscription 24,000 24,000 24,000 24,000 24,000
Marketing Expense 400,000 440,000 484,000 532,400 585,640
Miscellaneous Expense 12,000 13,200 14,520 15,972 17,569
Utilities 408,000 448,800 493,680 543,048 597,353
Total Expense 1,455,785 1,565,282 1,704,499 1,859,566 2,031,780
Profit Before Tax -10,985 -5,186 217,326 503,363 868,634
Tax 0 0 0 57,336 162,295
Profit for Sharing After Tax -10,985 -5,186 217,326 446,026 706,339

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Projected Balance Sheet

Balance Sheet
2019 2020 2021 2022 2023
Assets
Current Assets:
Cash 1,688,440 1,714,780 1,953,923 2,413,016 3,124,436
Inventory 199,200 219,120 241,032 265,135 291,648
Total Current Assets 1,887,640 1,933,900 2,194,955 2,678,150 3,416,082
Fixed Assets:
Security Deposit 250,000 250,000 250,000 250,000 250,000
Website Development 500,000 500,000 500,000 500,000 500,000
MotorCycle 52,000 52,000 52,000 52,000 52,000
Generator 106,000 106,000 106,000 106,000 106,000
Air Conditioner 65,000 65,000 65,000 65,000 65,000
Computer 100,000 100,000 100,000 100,000 100,000
Printer 10,500 10,500 10,500 10,500 10,500
Telephone Set 800 800 800 800 800
LEDs, Fans 7,600 7,600 7,600 7,600 7,600
Furniture 70,000 70,000 70,000 70,000 70,000
1,161,900 1,161,900 1,161,900 1,161,900 1,161,900
Less: Accumulated
60,525 111,971 155,700 192,870 224,464
Depreciation
Total Fixed Assets 1,101,375 1,049,929 1,006,200 969,030 937,436

Total Assets 2,989,015 2,983,829 3,201,155 3,647,181 4,353,520

Liabilities & Owner’s Equity:

Liabilities:
0 0 0 0 0
Owner’s Equity:
Capital 3,000,000 2,989,015 2,983,829 3,201,155 3,647,181
Net Profit -10,985 -5,186 217,326 446,026 706,339

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 This document is strictly confidential & belongs to
Team KITABIST

Total Owner’s Equity 2,989,015 2,983,829 3,201,155 3,647,181 4,353,520

Total Equity & Liabilities 2,989,015 2,983,829 3,201,155 3,647,181 4,353,520

Cash Flow Statement

Cash Flow Statement

Cash Flow Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
cash flow from operating activities 0
Add: net income 0 -10,985 -5,186 217,326 446,026 706,339
Add: depreciation 0 60,525 51,446 43,729 37,169 31,594
Less: Inventory 0 199,200 19,920 21,912 24,103 26,514
cash flow from operating activities 0 -149,660 26,340 239,143 459,092 711,419

cash flow from financing activities

owner's equity 3,000,000 0 0 0 0 0
long term loans 0 0 0 0 0 0

cash flow from financing activities 3,000,000 0 0 0 0 0

cash flow from investing activities

Security Deposit 250,000 0 0 0 0 0
Equipment 334,300 0 0 0 0 0
furniture and fixtures 77,600 0 0 0 0 0
Website Development 500,000 0 0 0 0 0

cash flow from investing activities 1,161,900 0 0 0 0 0

Net Cash Flow 1,838,100 -149,660 26,340 239,143 459,092 711,419

cash at the beginning of the period 0 1,838,100 1,688,440 1,714,780 1,953,923 2,413,015
cash at the end of the year 1,838,100 1,688,440 1,714,780 1,953,923 2,413,015 3,124,434

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This document is strictly confidential & belongs to
Team KITABIST

8. Exit Strategy:
Two exit strategies will be considered by the business members in case the business is unable
to generate revenue as per expectations or the members are unable to further run the
operations of the business due to any personal or work related reasons:

1. Liquidation: All firm assets will be sold off and the money from the proceedings will
be used to pay off the debt. If any balance is left after paying off debt, it is going to be
equally divided among the partners.

2. Selling Business to a Buyer: If the company members are offered a good price, the
business would be sold to the buyer in order to exit from the business and also
because we would to perpetuate our business and not see the end of our hard work.

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