BUSINESS PLANFOR BUILDING MATERIAL AND HARDWARE CENTRE

OF

KHUBUNG ENTERPRISES (PTY) LTD

CONTACT NUMBERS: EMAIL:

DATE: 29th JUNE 2012

TABLE OF CONTENTSEXECUTIVE SUMMARY

FINANCETHE ENTREPENEUR

COMPETITORSMANAGEMENT

STAFFDESCRIPTION OF BUSINESS

THE SUPPLIERS AND GUARANTEESTHE MARKET

THE PRODUCTTHE MARKETING PLAN

THE OTHER P’S OF MARKETING:The PlaceThe Price

Promotion

SUPPORTSWOT ANALYSIS

FINANCIAL INFORMATIONCASH FLOW PROJECTIONSSUPPORTING DOCUMENTS

a) Survey done with prospective customers/letter of intentb) Certified copies of identity documentsc) CVs of directors and other staff members are attachedd) Photographs of products

 Notes to the Cash Flow Projections List of products to be sold is attached together with estimated costs and

selling pricesThe Loan Repayment FiguresThis is arrived at interest rate of 25% for payment over(12 months) 1

year.

Executive SummaryFrom our market research, we know that the demand for building materials and hardware products will never stop and these commodities mostly needed.With the support from our suppliers, customers and the passion to own and manage our own business, we will be successful and able to service the loan.Finance RequiredFinance is required for setting up, namely:Purchases of stocksRental of premisesAdvertising & PromotionsVehicle ExpenseThe DirectorsThe directors, Mr. Samuel Liphapang Senekal has business accounting degree, and has 12 years extensive experience in business. Mr Ullas Vjayan has business management diploma and has 4 years experience in business. He is hardworking, honest, and reliable and customer focused. He is keen to abide by the disciplines to make his/her business a success . The third director Vijayakumar Bhaskaran has a BA in education and is also exposed to business environment.The Suppliers The following companies are our potential suppliers of products to sell:• PG Bison – Boards• York Timbers – All types of timber• Proroof – Roofing materials such as corrugated iron sheets, tiles etc•Solid Doors•Robmeg•Barns Fencing The Market PlanThe target market is virtually most businesses, e.g. site developers, contractors, government ministries, schools, individualsWe intend to attract customers by using the following strategy:•Advertising in local newspapers and radio•Handing out flyers to vehicles •Approaching various contractors in the area.•Making contact with family and friends and their contacts.• Monthly Sales Promotions

SURVEY OR LETTER OF INTENT

Will you purchase from our company building Materials YES/NO

NAME & SURNAME

Ntja Lelefa

BUSINESS NAME

Smartbuild Consorium

CONTACT

(00266) 62-017921

DESCRIPTION OF BUSINESS

The business will be the building materials and hardware centre. The stock of materials and hardware will be purchased from various

manufacturers and wholesalers in the neighbouring states such as Republic of South Africa.

The business will operate from affordable rented premises with myself and ten other employees working in the business.

With the constant increase in proposed new buildings and the population these commodities will always be in high demand and hence it can only be a success.

My past experience in the corporate world, where I gained invaluable business experience, will put me in good stead to make a success of this business opportunity.

What will make this business very viable is that because of the demand for this commodities, one can basically sell to many different people and organisations. In analyzing the customer base, we can predict that 80% of the business will be cash, which will assist our cash flow.

THE MARKET

The market is everybody that needs materials and hardware products for themselves, their business, institutions etc.

Although the business will be competing in our region for starters against some well known companies, by saving on expenses, on transport cost and because our overheads are a fraction of these companies, it will make me more competitive and business strategy of being flexible to the customers needs will ensure that I make a success of this business venture.

The initial strategy is to get the business from our wide range of contacts, as well as the public, direct calling and word of mouth

The growth potential of this market is big, because as the area and population grows, my business will grow.

THE PRODUCTS Building materials: Corrugated iron sheets, tiles, timber, cement, etc. Doors and openings: door frames, window frames, doors, locks, nails, paints,

gutters and window glasses. Electrical: wiring materials, plugs, lamps, etc. General hardware: Hammers, tapes, padlocks, saws, etc. Tools: Grinders, drills, wheelbarrows, picks, shovels etc. Garden & outdoor: Rakes, hoses, pliers, fencing materials etc. Demand for the above products will always increase and being a service

orientated company with excellent pricing, I will market my business aggressively and with my ability to build strong business relationship, it will be hard not to succeed.!

THE PLACE

The business will be situated in Teyateyaneng at Assumption RCM Premises, which is in close proximity to T.Y. Bus and Taxi Rank.

The size of the premises is 25 square metres, which is ideal for the ,raw materials and stock.

The premises will be available from the end of June 2012. The premises is situated in an area with different types of business and housing

surrounding it. The lease is for 2 years, which can be renewed, however this business will not be

dependent on where it is located!

PRICE

The cost of selling is approximately shown below . My research into this market has indicated that the selling price is also shown below. Prices include all the overheads, a healthy net profit margin between 30 and 35 percent will be achieved.

PROMOTION

Networking with all our contacts, our leads, family and friends, will be used aggressively as well as word of mouth which is going to be a key element in promoting my business.

Advertising in the local newspapers, radio, handing out promotional leaflets, will most definitely promote the business even further and because the business is not linked to a franchise group, more money will be available to keep promoting my business on a regular basis.

Referrals will be another key element in promoting the business.

COMPETITION

The competition has expensive transport cost and they have much higher overheads than ours, which will therefore make us more competitive than them.

Our business strategy is to develop strong business relationships with all customers.

Together with our products being a neccessity and our competitive pricing, will be able to attract a lot of customers.

Flexibility to my clients needs will further play a role in the success of my business. All the above will ensure that this company stays one step ahead of the

competition!

MANAGEMENT

We will be the owners of this business and will initially be assisted by 10 staff members to support us in the running of it. As this business grows, more staff will be added

Whilst working for different companies we always exceeded expectations and went the extra mile.

In one of the positions held, we supervised a portfolio of staff, controlled budgets and hence played a significant role in the success of the company and it’s growth.

We believe that the experience that we have gained in the corporate world, our strong business acumen and business studies, will contribute to the success of this business.

STAFF

Our staff will operate on the premises on a permanent basis. Their starting salaries will be R1,200 per month. We firmly believe in a years time our business would have grown substantially

and our staff needs would have doubled and in 3 years we would be in need of a total of 15 staff.

Training and motivation will be given to our staff on a continuous basis.

SUPPORT The bank would be the main financial support structure in our company, with fully

commitment of all directors playing active role, especially with administration and bookkeeping!

SWOT ANALYSIS STRENGTHS: There will always be a need for this products and demand will never stop. The products we will sell, will be of a high quality. We have a strong business background and a definite passion for business. The business will be highly profitable.

WEAKNESSES: New venture. The need for funding for the business. The need to explore different distribution channels. Achieving consistency in quality and marketing strategies in a new business

OPPORTUNITIES

To keep expanding on our customers needs. To expand products varieties. No limit on the capacity to grow and develop more initiative as well as market

aggression.

THREATS

Cost and method of funding Labour interest

FINANCIAL INFORMATION

SETUP COST:1. Cost of Stock R 1,200,000.00 2. Rental of Premises R 35,000.003. Transportation Inwards R 7,000.004. Van Hire R 4,000.005. Stationery R 1,500.006. Electricity R 5,500.007. Protective clothing R 3,200.008. Packaging R 2,500.00

This business will require the bank to finance it. This money will be utilised to pay for the purchases, rent, van, stationery, set up costs

and the general day to day running of the store including salaries and telephones.

Error and ommission excluded subject to change

FINANCIAL PROJECTIONMONTH 1ST 2ND 3RD 4TH 5TH 6TH 7TH 8TH 9TH 10TH 11TH 12TH

SALES 187000 755000 812000 950000 910000 987000 710500 675000 625000 610000 589000 680000

COST OF SALES 1100000 250000 300000 600000 525000 800000 300000 300000 300000 300000 300000 300000

TRANSPORT INWARDS

7000 7000 7000 7000 7000 7000 7000 7000 7000 7000 7000 7000

ELECTRICITY 5500 5500 5500 5500 5500 5500 5500 5500 5500 5500 5500 5500

RENT 5000 5000 5000 5000 5000 5000 7000 7000 7000 7000 7000 7000

ADVERTISING 500 500 500 500 500 500 500 500 500 500 500 500

SALARIES & WAGES

21500 21500 21500 21500 21500 21500 21500 21500 21500 21500 21500 21500

PACKAGING 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500

MOTOR VEHICLE

4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000

PROTECTIVE CLOTHING

3200 Nil Nil Nil Nil 3200 Nil Nil Nil Nil Nil Nil

TELEPHONE 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200

STATIONERY 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500

TOTAL SALES: R 8, 490,500.00TOTAL COST EXPENDITURE : R 6,280,400.00PROFIT BEFORE TAX: R 2, 210,100.00

SUMMARY

We firmly believe that the passion we have to have our own business, coupled with our business acumen and a products that we will sell, the business can only but succeed.