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CATHOLIC UNIVERSITY OF RWANDA

FACULTY OF COMMERCE DEPARTMENT: MAC & CENG
Module: Project Management & Entrepreneurship
Topic: Assume that you are planning to introduce a small carpentry in Butare town. Show the steps that you should follow in order to be successful. You should in the entrepreneurial perspective.

Assignment: Group IV Students names and Reg. number

1. 2. 3. 4. 5. 6. 7. 8. 9.

RWIGIMBA Anaclet UWAMALIYA Francoise MUKAKABERA M. Chantal TUYISENGE S. Christine NZEYIMANA J. M. Vianney NGARUKIYINTWALI Thophile MUVAKURE Vincent MUKAMUGISHA Esprence NDIZEYE Amde Eline

: 1CUR10AK00343 : 1CUR10AK00517 : 1CUR10AK00148 : 1CUR10AK00360 : 1CUR10AK00328 : 1CUR10AK00244 : 1CUR10AK00510 : 1CUR10AK00580 : 1CUR10AK00237 : 1CUR10AK00390

10. UWABABYEYI

Lecturer: Mr. MANIRAGUHA Michel Done at Save, 13rd May 2012

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TABLE OF CONTENTS TABLE OF CONTENTS...................................................................................................................2 1.0 Executive Summary......................................................................................................................3

1.1 Objectives and goals..........................................................................................3 1.2 Mission............................................................................................................... 3 1.3 Vision................................................................................................................. 3 1.4 Business philosophy ..........................................................................................3 1.5 Keys to Success................................................................................................. 4 1.6 BCC SWOT analysis ..........................................................................................4 1.8 BCC SMART analysis...........................................................................................4 1.9 Description of the industry ................................................................................4

2.0 Legal form of ownership..............................................................................................................5

2.1 Products and Services........................................................................................5

Market plan.........................................................................................................................................5 4.0 Operational plan...........................................................................................................................6 5.0 Management and organization ..................................................................................................7
5.1 BCC organizational chart ...................................................................................7 5.2 Balance Sheet: 2012..........................................................................................8 5.2.1 Assets.......................................................................................................... 8 5.2.2 Equity & liabilities........................................................................................8

6.0 Startup expenses and capitalization...........................................................................................9 7.0 Financial plan................................................................................................................................9

7.1 Annually profit projection...................................................................................9 7.2 Break even analysis per year.............................................................................9

8.0 Conclusion ..................................................................................................................................10 Business Plan for CARPENTRY in Butare town (Butare City Carpentry BCC)

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1.0 Executive Summary BCC solutions to customer's garden carpentry needs. Our goal is to provide an end product that is unique to the customer's requirements. BCC will focus on different kinds of equipments that are needed in Butare city and its surroundings. BCC is well positioned business because it is located in the center town where other competitors are still having old fashioned machines and their technicians are not well skilled. The total of shareholders is 10,000,000Rfr and the loan is 20,000,000Rfr. The company is forecasting to operate with 30,000,000Rfr. 1.1 Objectives and goals
1. Provide home and office fournitures of high quality (tables, desks, cupboards, beds, chairs,

armchairs), 2. Provide school equipment, 3. Job creation. 4. Satisfying customer needs 5. Social and economic growth, 6. Customer care services. 1.2 Mission BCC mission is to offer to Butare people and its nearest different kinds of equipments (home, office, and school). BCC is such a vendor. It serves its clients as a trusted ally, providing them with the loyalty of a business partner and the economics of an outside vendor. We make sure that our clients have what they need to have as well as possible, with maximum efficiency and reliability. 1.3 Vision Expend and develop our business from one carpentry to four carpentries in different districts during five next years. Availability of different equipments to the different levels of people. 1.4 Business philosophy Our carpentrys customers are very important. They will help us to achieve our goals and objectives. The products are sold to these customers and they will enable us to get profit.

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1.5 Keys to Success

1. Price-oriented businesses,

2. Services and support, 3. Customer care deliverance. 1.6 BCC SWOT analysis BCC carpentry will focus on delivering to Butare citizens good and quality services. Well trained technicians will enable our carpentry to be more competitive in this small town but very smart people who know the fashions things. As beginners, we will try to collaborate with other competitors to gain a little experience from them. Even they will not provide us full information, but through what they will communicate us, they will make us to be more competent. 1.8 BCC SMART analysis Within BCC, specifying, measuring, achieving, realizing and timing will make our carpentry to be equity and strength. Those above factors are keys to improve success if applied. Focus on having at least 70% of the Butare City market. This projection will be possible when satisfying our customer, and maintaining a good customer relationship. 1.9 Description of the industry Our carpentry is a growing industry. Due to the efficient products that we will produce, we assume that the gotten profit will allow us to achieve our vision. Developed factors such as: Trained employees, Longlife and technological machines, Marketing of the products, Customer care service.

These above factors will facilitate to satisfy the needs of our customers.

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2.0 Legal form of ownership BCC is a privately-held partnership owned in majority by its founder and president. There are ten partners owners, including committee and some investors. These investors have the equal shares. 2.1 Products and Services Our products and services are mainly based on office, home and school fournitures which are shown on the images below:

The factors such as bring new design to the market, having an album photos of all our products will attract our customers and influence them to buy frequently. Our strategic prices include: Leasing structure, Promotion, Price reduction method.

Market plan Using sample research, weve concluded that the mentioned equipment are needed due to the specific designs and most companies and homes are likely to use this modern equipment. The company will promote its products by advertising on TV, radios, newspapers and in album photos. Our competitors use the old machines without new techniques. They are still producing the equipment which are no longer needed in Butare city. It is the reason our company is better positioned. Even though our products modern, their prices are not higher than those from our competitors.

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4.0 Operational plan Our carpentry will operate 6 days per week and Sunday of holiday. This will allow our employees to take a rest and not block them from their different religions. These open days will also allow our clients to find us where they need our products. It will also collaborate with other competitors and participate in community services such as umuganda, and other legal requirements. BCC is located in Butare city near the main road, BIHIRA Juvenal is our neighbor. It is a modern carpentry where our machines and tools are well kept and controlled. Our employees are more skilled in this domain and they have trained about how to produce the modern equipment using modern machines. Basing on quality and control of BCC products, we will focus on customer needs and desires. To maintain quality of our products, we need to satisfy our employees and to regularly do the maintenance of machines. We also need to train day to day both staff and employees so as to improve performance and competence. These will enable us to compete with our competitors. We have an employee in charge of inventory and customer care. This one records day to day events and he/she reports to his/her supervisors. The total number of BCC employees are 20 and 3 of them are all professionals, 10 are technicians, 2 guards and 5 workers. All those employees are well paid as follow: Professionals: 100,000Rfr/employee Technicians: 80,000Rfr/employee Workers: 30,000Rfr/employee Guards: 20,000Rfr/employee Raw materials: timbers and boards, varnish, nails, screws and other materials, Tools, Finished goods.

BCC inventory contains three categories of inventory:

We have different suppliers: Ones from Nyaruguru, Nyamagabe who bring us timbers and boards, and they are paid regarding to the agreement, We are supplied from different hardware store. As we have a policy of leasing to some customers, we plan to sell some equipment on credit but it should be paid not later than one month after delivering. (This is how to manage account

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receivable). According to the management of our account payable, we plan to pay our creditors not later than one month plus a week. If it happens any disagreement, we deal with this issue pacifically and if they persist, we call for other support. 5.0 Management and organization Management is a process of working with and through other to achieve goals. The reason why the owners should work with the skilled employees and subordinates so as to achieve their goals. 5.1 BCC organizational chart It shows the management hierarchy and every bodys tasks and functions
Board of directors (Owners)

Manager

Human resource/Finance

Technical Responsible

Accountant

Professionals

Guards

Workers

Storekeeper

Technicians/Woodworkers

The process of management is from lower management to the top level of management. The information are corrected from the employees to the manager and manager inform the owners in order to take the right decisions. Each level of management is direct supervised by his responsible. When there is a rack of capacity of someone, we have a team spirit which means there is a mutual support among personal. The last decision is taken by the owners. But before the owners have to consult each levels position even lower levels of workers.

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5.2 Balance Sheet: 2012 5.2.1 Assets Short-term assets Cash Bank Inventory Long-term Assets Machines Building Other materials Total assets 5.2.2 Equity & liabilities Capital Liability Total : 10,000,000Rfr : 20,000,000Rfr : 30,000,000Rfr : 15,000,000Rfr : 4,200,000Rfr : 2,100,000Rfr : 30,000,000Rfr : 1,000,000Rfr : 4,000,000Rfr : 3,700,000Rfr

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6.0 Startup expenses and capitalization Startup expenses Electricity Rent Water Transport Advertisement Communication Other expenses Total Capital This capital will be withdrawn from our bank account. 7.0 Financial plan 7.1 Annually profit projection Sales revenue per year Less: Expenses Total revenue Less: Dividends Less: Bank payable Profit before taxes Less: Taxes on profit (50%) Net profit : 160,000,000Rfr : 108,000,000Rfr : 52,000,000Rfr : 5,000,000Rfr : 7,600,000Rfr : 39,400,000Rfr : 19,700,000Rfr : 19,700,000Rfr : 100,000Rfr : 100,000Rfr : 5,000Rfr : 500,000Rfr : 50,000Rfr : 50,000Rfr : 100,000Rfr : 905,000Rfr : 905,000Rfr

Because of the loan of 20,000,000Rfr that we have to pay with the interest (18%), these above information are calculated by referring to the payment of the Bank loan. 7.2 Break even analysis per year Sales revenue Less: Expenses Break-even per year : 140,300,000Rfr : 140,300,000Rfr : 0Rfr

Sales revenue are equal to the expenses. This means that theres no profit no loss.

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7.2 Four year profit projection First year profit projection Second year profit projection Third year profit projection Fourth year profit projection Total profit projection Less: Unforecast loss Net profit projection in four year 8.0 Conclusion BCC is a new solution to Butare City citizens. Our products in wood will be more attractive and much competent to Butare City market and all over the country. It will also be a solution to unemployment problem in this City. It will allow us to give citizens from Butare fashion products, and finally our economic growth will increase rapidly. REFERENCES http://www.marketingteacher.com/lesson-store/lesson-objectives.html http://www.bplans.com/sample_business_plans.php COURSE SYLLABUS: Project Management and Entrepreneurship/Business Plan by Mr. Michael MANIRAGUHA : 19,700,000Rfr : 25,000,000Rfr : 30,000,000Rfr : 38,000,000Rfr : 112,700,000Rfr : 10,000,000Rfr : 102,700,000Rfr