The document outlines a business plan for a mobile grooming service called Grooming Van. It discusses the team members, introduces the business concept of providing grooming services from a van. It then covers environmental and industry analysis, a SWOT analysis, organizational structure, marketing and operational plans, risk assessment, and 5-year financial projections including income statements, cash flow statements, balance sheets, and capital budgeting. The financial projections show positive net income, cash flows, and a positive net present value for the proposed project.

1. Grooming Van
TEAM MEMBERS:
-BHUWANESHWAR BHATTA
-SAKSHYAT GHIMIRE
-MANISH ARYAL
-BINDU THAMI
-ASHOK RAJ JOSHI
KAMLESH YADAV

2. INTRODUCTION
 The business prospects of Grooming Van is totally a new and unique business model,
which is portable in nature. It doesn't have a specific location. The business model is
inspired by street cablers who clean shoes. At first, a van is arranged with facilities
included inside it. Its services are:
i. Shoe polishing
ii. Perfumes
iii. Small trays of lipstick
iv. Washing, cleaning, pressing and drying clothes
v. Brushing service
vi. Hair color and Hair design

4. ENVIRONMENT ANALYSIS
 EXTERNAL ENVIRONMENT
The component lying outside the business like economic, competitive, political, socio-
cultural, government, suppliers, media and technological factors which effect and influence
the business operation.
 INTERNAL ENVIRONMENT
The factor and forces lying inside the business-like employee, structure, and
serviceability are the component of Internal Environment. They determine the strength and
weakness and are highly controllable. The Internal Environment of the venture is:

5. INDUSTRY ANALYSIS
 INDUSTRY BACKGROUND
The idea of Grooming Van was driven from the class discussion in group of 6
members. The information about Grooming Van can be taken from internet and other
related business organization. Seeing the lack of knowledge and opportunities of
Nepalese people relating to Grooming collection and their ever-growing curiosity the
future business of Growing Van is bright.

6. SWOT ANALYSIS
 2.1 STRENGTHS
 Located near the collages and party palace
 Better service
 Employees are trained.
 Faster than other competitors
 2.2 WEAKNESS
 The existing competitors have led the market
 Unregulated and unplanned growth
 Lack of product differentiation

7.  2.3 OPPORTUNITIES
 Service expansion
 Provide services-on-demand of customers' needs
 2.4 THREATS
 Political problems
 Natural Climates
 The entry of new competitors
 Shortage of raw materials

8. ORGANIZATIONAL PLAN
 FORM OF OWNERSHIP
This business is a partnership firm constituting six partners and will be named “Grooming
Van”. The promoters will hold equal proportion of equity. The business will be located near
the collages and party palace.
 PARTNERS
 Mr. Bhuwaneshwar Bhatta
 Mr. Sakshyat Ghimire
 Mr. Manish Aryal
 Miss. Bindu Thami
 Mr. Ashok Raj Joshi
 Mr. Kamlesh Yadav

9. ORGANIZATIONAL STRUCTURE
 OUR FIRM HAS GOT FIVE DEPARTMENTS:
 General Administration Department
 Marketing Department
 Operations Department
 Finance Department
 Service Department
Managing Director
Administration Marketing Operation Finance
Service

10. MARKETING PLAN
 Good planning and strategies are necessary for business development. There
should be good plans. Not only the plan is necessary but the vital thing is to
implement it properly. Our plan is totally focused on attaining consumer
satisfaction. We provide services according to their demand and their desires.
 MARKET SEGMENTATION
Our market is for the students of Kathmandu valley and people who are
attending party in palace.
 Targeted Customers
 Students
 General Public

11.  MARKET MIX
 SERVICE
Our service will be many Grooming items offered at the cheap price. We will offer
many services such as shoe polishing, small trays of lipstick, brushing service, hair
color, dress cleaning and so on.
 PRICE
Price is the major factor for attracting the customers. All the menus are set at low
price. We will adopt market penetration strategy by setting a low price then the
competitors. We assure offering best quality of services at affordable price.

12.  PLACE
As our Grooming Van is located near the colleges and party palaces. Definitely the place has been suitable to
attract the customers. So, it is clear that place plays important role in order to sustain any type of business.
 PROMOTION
It is the major strategy for us. The promotional activities that we will adopt are
 Advertisement
 : In T. V. (Kantipur three times a day before morning, day and evening news)
 : Newspaper (The Himalayan Times, Annapurna Post, Friday front page coverage, middle pg.
coverage for rest)
 : Radio (Sponsor a program called "Unleased Nepal" of Capital F.M.) .
 Public Relation: Press release, brochures, website (www.grooming.com), interview in T.V. etc.

13. OPERATIONAL PLAN
 LAYOUT OF VENTURE
 Grooming Van will be located at near the colleges and party palace. The layout
of the business is
 1st van:
 Occupied in small area of road
 Located near the Uniglobe college
 There will be 6 different cabins for each department

14.  2nd Van:
 Occupied in small area of road
 Located near the Ace College
 There will be 6 different cabins for each department
 3nd Van:
 Occupied in small area of road
 Located near the Apex College
 There will be 6 different cabins for each department

15. ASSESMENT OF RISK
 RISKS ASSOCIATED WITH OUR BUSINESS ARE:
 Obsolescence of washing machine and other technical equipment.
 Competitors might decrease the price of the product.
 Political instability might affect the business operation.
• Natural Climates might affect the business operation.

16. RISK MITIGATION STRATEGY
• By getting insurance.
• Limited business loan.
• Know the law.
• By hiring significant employees.
• By build reputation.
• By protecting business data.

17. FINANCIAL PLAN
 LOAN AMORTIZATION SCHEDULE
Loan Amount= Rs 12,00,000 at interest rate 10% for 5 years.
Annual Installment= 12,00,000/PVIFA10%, 5Years
=12,00,000/3.7908
=Rs 3,16,555.87

18. LOAN AMORTIZATION SCHEDULE
Year Installment Interest Principle Ending Balance
0 - - - 12,00,000
1 3,16,555.87 1,20,000 1,96,555.87 10,03,444.13
2 3,16,555.87 1,00,344.41 2,16,211.45 7,87,232.67
3 3,16,555.87 78,723.26 2,37,832.60 5,49,400.06
4 3,16,555.87 54,940.006 2,61,615.86 2,87,784.19
5 3,16,555.87 28,778.41 2,87,777.45 -

19. Grooming Van
Income Statement for 5 years
Particulars 2022/23 2023/24 2024/25 2025/26 2026/27
Service Revenue 40,00,000 48,00,000 60,00,000 75,00,000 90,00,000
Less: fixed cost (18,00,000) (18,00,000) (18,00,000) (18,00,000) (18,00,000)
Contribution Margin 22,00,000 30,00,000 42,00,000 57,00,000 72,00,000
Less: variable cost
-Salary and Wages
-Maintenance cost
-Depreciation
(5,40,000)
(2,00,000)
(3,60,000)
(6,75,000)
(2,00,000)
(3,60,000)
(6,75,000)
(4,00,000)
(3,60,000)
(6,75,000)
(5,00,000)
(3,60,000)
(8,10,000)
(6,00,000)
(3,60,000)
Total Operating Expenses (11,00,000) (12,35,000) (14,35,000) (15,35,000) (16,35,000)
EBIT 11,00,000 17,65,000 27,65,000 41,65,000 54,30,000
Less: Interest 10% of debt (1,20,000) (1,00,344.41) (78,723.26) (54,940.00) (28,778.41)
EBT 9,80,000 16,64,655.59 26,86,276.74 41,10,060 54,01,221.59
Less: Tax 30% (2,94,000) (4,99,39.67) (8,05,883.02) (12,33,018) (16,20,366.47)
Earning After Tax 6,86,000 11,65,258.91 18,80,393.71 28,77,042 37,80,855.11

20. Grooming Van
Cash Flow Statement for 5 years
Particulars 2022/23 2023/24 2024/25 2025/26 2026/27
Opening Cash Balance 4,00,000 5,09,444.13 12,42,948.6 20,55,509.72 35,45,935.86
A. Cash Receipts
Cash collected from
Service
40,00,000 48,00,000 60,00,000 75,00,000 90,00,000
Account receivable 50,000 75,000 1,00,000 1,25,000 1,50,000
Total cash receipts 44,50,000 53,84,444.13 73,42,948.6 96,80,509.72 1,26,95,935.86
B. Cash Payments
Cash payment for
purchases
22,00,000 25,00,000 27,00,000 30,00,000 32,00,000
Cash payment for
accounts Payable
30,000 40,000 30,000 50,000 40,000
Cash payment to
operating expenses
excluding depreciation
11,00,000 12,35,000 14,35,000 15,35,000 16,35,000
Cash payment for 1,20,000 1,00,344.41 78,723.26 54,940.00 28,778.41
Cash payment for tax 2,94,000 4,99,39.67 8,05,883.02 12,33,018 16,20,366.47
Total cash payments (37,44,000) (39,25,284.08) (50,49,606.28) (58,72,958) (65,24,144.88)
Dept redemption (1,96,555.87) (2,16,211.45) (2,37,832.60) (2,61,615.86) (2,87,777.45)
Net Surplus/Deficit 5,09,444.13 12,42,948.6 20,55,509.72 35,45,935.86 58,84,013.53

21. Grooming Van
Balance Sheet for 5 years
ASSETS 2022/23 2023/24 2024/25 2025/26 2026/27
Current Assets
Cash in Hand 5,09,444.13 12,42,948.6 20,55,509.72 35,45,935.86 58,84,013.53
Account Receivable 50,000 75,000 1,00,000 1,25,000 1,50,000
Trays and supportive assets 10,90,000 10,54,542.98 12,54,284.05 9,33,890.33 46,841.58
Total Current Assets 16,49,444.13 23,72,491.58 34,09,793.77 46,04,826.19 60,80,855.11
Fixed Assets 18,00,000 18,00,000 18,00,000 18,00,000 18,00,000
Less: Acc. Depreciation (3,60,000) (7,20,000) (10,80,000) (14,40,000) (18,00,000)
TOTAL ASSETS 30,89,444.13 34,52,491.58 41,29,793.77 49,64,826.19 60,80,855.11
LIABILITIES AND OWNER'S EUITY
Current liabilities 2,00,000 3,00,000 5,00,000 6,00,000 11,00,000
10% Debt 10,03,444.13 7,87,232.67 5,49,400.06 2,87,784.19 -
Retained Earnings or Profit 6,86,000 11,65,258.91 18,80,393.71 28,77,042 37,80,855.11
Owner's Equity 12,00,000 12,00,000 12,00,000 12,00,000 12,00,000
TOTAL LIABILITIES AND
EUITY
30,89,444.13 34,52,491.58 41,29,793.77 49,64,826.19 60,80,855.11

22. CAPITAL BUDGETING DECISIONS
 Initial Outlay
Details Amount
Vans 15,00,000
Machinery 3,00,000
Equipments
Supportive
1,00,000
Trays 1,00,000
Total 20,00,000

23. Annual CFAT
Details 2022/23 2023/24 2024/25 2025/26 2026/27
Earning before depreciation and
tax
13,40,000 20,24,655.9 29,84,655.9 44,70,060 57,61,221.59
Less: Depreciation (3,60,000) (3,60,000) (3,60,000) (3,60,000) (3,60,000)
Earning before tax 9,80,000 16,64,655.59 26,86,276.74 41,10,060 54,01,221.59
Less:Tax (30%) (2,94,000) (4,99,39.67) (8,05,883.02) (12,33,018) (16,20,366.47)
Earning after tax 6,86,000 11,65,258.91 18,80,393.71 28,77,042 37,80,855.11
Add: Back depreciation 3,60,000 3,60,000 3,60,000 3,60,000 3,60,000
CFAT 10,46,000 15,25,258.91 22,40,393.71 32,37,042 41,40,855.11

24. Net Present Value
Year CFAT PVIF@12% PV
2022/23 10,46,000 0.8929 9,33,973.4
2023/24 15,25,258.91 0.7972 12,15,936.4
2024/25 22,40,393.71 0.7118 15,94,712.24
2025/26 32,37,042 0.6355 20,57,140.19
2026/27 41,40,855.11 0.5674 23,49,521.19
Total TPV 81,51,283.42
Total Present Value 81,51,283.42
Initial Outlay 20,00,000
Net Present Value 61,51,283.42

25. Payback period
Year CFAT Cum. CFAT
2022/23 10,46,000 10,46,000
2023/24 15,25,258.91 25,71,258.91
2024/25 22,40,393.71 48,11,652.62
2025/26 32,37,042 80,48,694.62
2026/27 41,40,855.11 1,21,89,549.73
Payback period = Years before full recovery + Unrecovered cost
at the start of the year / Cash flow during the year
PBP= 1+(9,54,000/15,25,258.91)
PBP= 1.63 years