Outline of business plan 1.Introductory page 2. Executive summary 3. Environmental and Industry analysis 4. Description of venture 5. Production plan and operational plan 6. Marketing plan 7. Organisational plan 8. Assessment of risk 9. Financial plan

1. 0 | P a g e
RELAX SHOES BUSINESS PLAN
- By : mariam ali abd-alrazik
- Mariamkhlosy24@gmail.com
- Subject : project economics

2. 1 | P a g e
Business plan
Introductorypage
Relax shoes
Medical Shoes with Massage for Heel Pain
Cairo& Giza
Owner: Mariam Ali
Mariamkhlosy24@gmail.com
Nature of the business:
It is about a medical shoes with a technological Massage built in
for heel pain as physical therapy that the person who suffer from
this kind of pain can have a quick massage anywhere at any time
for his heels without the need for traditional electricity connection
to work because it will has a “load cell” that generate electricity by
load and movement, also it is going to be easy to use as you will
get a remote control to turn it on and select the speed that you
want your massage to be, and let it do the massage session for
you.
Financing:
Initial financing requested is 300,000 EGP loan to be paid off over
2 years. This debt will cover costs like warehouse, office space for
operation, equipment, advertising, and selling costs.
 This report is confidential and is the property of the owner
listed above. It is intended for use only by the persons to
whom it is transmitted and any reproduction or divulgence of
any of its content without the prior written consent of the
company is prohibited.

3. 2 | P a g e
Executive summary:
The product was found to provide people who suffer from heel
pain a massage in their shoes anywhere at any time.
Product introductory:
It is about a medical shoes with a technological Massage built in
for heel pain as physical therapy that the person who suffer from
this kind of pain can have a quick massage anywhere at any time
for his heels without the need for traditional electricity connection
to work because it will has a “load cell” that generate electricity by
load and movement, also it is going to be easy to use as you will
get a remote control to turn it on and select the speed that you
want your massage to be, and let it do the massage session for
you.
 Ultimate customer:
People who suffer from heel pain
Especially people over the age of forty (70%)
 Expected demand
60% (assumed)
 Expected competitors:
- There are no competitors or providers for the same product
up till now. But, there are 2 providers for similar products as :
1) The ordinary medical shoe, that have has few features
similar to the “Relax shoe” as relatively relieving the pain
of heels but don’t has a massage in it.

4. 3 | P a g e
2) also there as a device that provides a massage for heel
pain but its size is very big and it has to be used at home
not outside as it has to be connected to electricity, but
Relax shoe has a competitive advantage as it doesn’t
need the traditional electricity connection to work because
it will has a “load cell” that generate electricity by load and
movement.
 We will target medium and high level income as they are
willing to buy it.
 The estimated price of the product to cover costs and profit
is 2,500 L.E per unit.

5. 4 | P a g e
Environmental& Industry Analysis:
 We expect high demand as it is a new product with new
technology.
 My business is unique.
 There are no typical competitors or providers for the same
product up till now. But, there are providers for similar products
like the ordinary medical shoes with no massage, and the
massage device which is big and used only at home. On the
other hand relax shoes has its own competitive advantage as
it is small and doesn’t need the ordinary electricity connection
to work as it has “load cell” that work by weight and movement
of the person.
 We will target medium and high level income as they are
willing to buy it.
 It’s forecasted that the project will receive a great acceptance
from the customers as there is no provider for their unsatisfied
need.
 The government is currently supporting any new ventures that
are targeting new cities by providing the infrastructure for
discounted prices. Also any new startup will be exempted from
taxes for the first 5 years.
 International trend level is going rise.
 There is a significant technological development.

6. 5 | P a g e
Description of the Venture
The product: is “Relax shoes” - medical Shoes with Massage in it
for Heel Pain-
It is about a medical shoes with a technological Massage built in
for heel pain as physical therapy that the person who suffer from
this kind of pain can have a quick massage anywhere at any time
for his heels without the need for traditional electricity connection
to work because it will has a “load cell” that generate electricity by
load and movement, also it is going to be easy to use as you will
get a remote control to turn it on and select the speed that you
want your massage to be, and let it do the massage session for
you.
 The business will locate in Cairo and Giza.
 Also we can provide online service for delivery allover Egypt,
which in turn will increase our sales.
Background of the Entrepreneur:
As an entrepreneur I have many skills that would help me in this
business as: Marketing knowledge, planning skills, creative
thinking, analytical thinking, problem solving skills, interpersonal
skills.
Also, for the part of experience, it will be supported by an
expertise in the business operations and the market some of them
will be supporters in the management team and the others will be
consultants.

7. 6 | P a g e
Production plan
a) We will subcontract with:
1) “El Waleed Factory for Leather Products” for supplying
leather that we will use it in manufacturing the product.
Which locate in Cairo.
2) “METTLER TOLEDO” for supplying “load cell” for the
product, it locate in Giza.
3) “ELNAGAH” for manufacturing and printing carton boxes, it
locate in Sabry El Zaher Street Cairo, Egypt.
b) Physical plant: it will be located in new industrial city in 6 of
October city.
c) Raw material consists of:
 High quality Leather.
 Load cell – used to generate electricity for the massage built
in the shoe.
 Rubber.
 Dye – used in the process of coloring.
 Packing Material - boxes, cartons, tissue papers, tags,
barcode labels.

8. 7 | P a g e
Operational plan
 There will be no specific shop for the product as a beginning
for the product to decrease the overhead costs as we will deal
with:-
1) Other Medical distributer stores like “Al Fadl Medical”.
2) Pharmacies like “ELEZABY” “ELNADY” “MASR
PHARMACY”
3) We will develop a website to sell the product online.
 For transporting the product for customer who ordered it online
will deal with shipping company “aramex”.
 Also there will be a consumer support service.
Marketing plan
 Product: it is a new product that satisfy customer need also
customers are willing to buy it .and there is no other typical
product like it in the market.
 Price: 2500 per unit. That will cover Costs: labor, materials
and production of the product is considered before setting
the price.
 Payments: will be in cash or through our official website by
visa.

9. 8 | P a g e
 Place or Distribution: it will be available online, in
distributers’ stores and pharmacies.
 Promotion:
 Advertising : through appearing in TV shows that support
entrepreneurs
 Selling: use sales associates to stress the benefits of products
to customers and to overcome their concerns.
 Digital/Interactive: Social media portals such as Twitter,
Facebook and YouTube also provide inexpensive ways to
interact with customers in real time.
Organization plan
 Form of ownership: sole proprietorship.
 The management team will include:
Marketing manager, electrical engineer, financial analyst,
R&D and market research, business analyst, accounting
manager, sales manager, Executive officer.
 Authority of the principle: will be on the owner of the
business as it is a sole proprietorship.

10. 9 | P a g e
 Roles and responsibilities of members of organization :
 Design engineer: is responsible for designing the
product.
 Graphic designer: Prepares work to be accomplished
by gathering information and materials. Illustrates
concept by designing rough layout of art and copy
regarding arrangement, size, type size and style of the
product.
 HR manager: is responsible for gathering the
management team.
 Sales manager: is responsible for designing and
implementing a strategic sales plan that expands
company's customer base and ensure it i's strong
presence.
 Executive officer: is responsible for keeping the ship
afloat. He works with all of the teams to create synergy
and hold them accountable.
 Research and development team: has the
responsibility of being innovative and keeping up with
the latest trends and developments.
 operations and production team: is responsible for
bringing the product to life
Assessment of risk
 Major risks for a new venture could result from:
Competitor’s reaction; weaknesses in the marketing, production,
or management team; and new advances in technology that might
render the new product obsolete.

11. 10 | P a g e
 To reduce this risks we have to evaluate our performance
continuously and to be up-to-date with the new technology and
new market trends
Financial plan
1) Sales budget
Jan feb march Total
Projected
sales(units)
150 200 250 600
Projected
sales ($)
2500 2500 2500 2500
Estimated
sales
375000 500000 625000 1,500,000
2) ManufacturingBudget:
jan feb March
Projected
sales (units)
150 200 250
Ending
inventory
4 6 8

12. 11 | P a g e
Available for
sals
154 206 258
Less: beg.
Inventory
_ 4 6
Total
production
required
154 202 252
3) Operating Budget for the First Three Months (LE 000):
Expense January February March
Salaries 23.2 23.2 23.2
Rent 2 2 2
Utilities 0.9 0.9 0.9
Advertising 13.5 13.5 13.5
Insurance 2 2 2
Payroll taxes 2.1 2.1 2.5
Depreciation 1.2 1.2 1.2
Office expenses 1.5 1.5 1.5
Total expense 46.4 46.4 46.4

13. 12 | P a g e
4) Pro Forma Income Statement, First Year by Month (LE
000):
Jan Feb Mar
Sales 375 500 625
Less: costof
goods sold
337.5 450 562.5
Gross Profit 37.5 50 62.5
Operating
expenses:
Salaries 23.2 23.2 23.2
Rent 2.0 2.0 2.0
Utilities 0.9 0.9 0.9
Advertising 13.5 13.5 13.5
Insurance 2.0 2.0 2.0
Payrolltaxes 2.1 2.1 2.1
Depreciation 1.2 1.2 1.2
Officeexpenses 1.5 1.5 1.5
Total operating
expenses
46.4 46.4 46.4
Gross Profit (8.9) 3.6 16.1

14. 13 | P a g e
5) Pro Forma Cash Flow (LE 000):
Jan Feb Mar
Sales 375 500 625
Disbursements:
Equipment
purchase
100 ___ ___
Cost of Goods 337.5 450 562.5
Salaries 23.2 23.2 23.2
Rent 2.0 2.0 2.0
Utilities 0.9 0.9 0.9
Advertising 13.5 13.5 13.5
Insurance 2.0 2.0 2.0
Payroll and Misc.
taxes
2.1 2.1 2.1
Office expenses 1.5 1.5 1.5
Total
Disbursements
482.7 495.2 607

15. 14 | P a g e
6) Pro Forma Balance Sheet (LE 000) after 1 year:
Assets
Current Assets:
Cash LE 100
Accounts
Receivable
50
Inventory 100
Total current
assets
LE 250
Fixedassets:
Equipment 100
Less:
Depreciation
1.2
Total fixed
assets
98,8
Total Assets LE 348.8
Liabilities and
Owner’s
Equity:
Current
Liabilities:
Cash Flow (107.7) 4.8 18
Beginning Balance 329.8 222.1 226.9
Ending Balance 222.1 226.9 244.9

16. 15 | P a g e
Accounts
payable
LE 15.0
Total Liabilities LE 15.0
Owner’s
equity:
333.8
Total owner’s
equity
333.8
Total Liabilities
and owner’s
equity
LE 348.8
7)Break-even point =
TFC
SP−VC/unit
=
100,000
2500−500
= 50 unit.