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Business Plan on Yoga Center

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Business Plan on Yoga Center

  1. 1.  Name – Dirghyau Yoga And Meditation Center  Location – Chovar Kathmnadu  Company Ownership – Shiva Basyal  Besides the training, sell workshop clothing and yoga training aides.
  2. 2.  Acquire 300 customers by the end of the first year of operation.  Achieve sales in excess of Rs15000 every months from the boutique  Increase customer base by 25% by the end of the second year of operation.  Increase sales by 15% by the end of the second year of operation.
  3. 3.  Peaceful environment  Efficient and prominent employees  Good customer relation.  Dedication and hard work of the founders.  Educated and Experienced Professionals who will offer best yoga and meditation instructions.  Best and personal touch feelings to the customers or members.  For retaining the customer, particularly within the first year of operation company will allocate substantial part of budget for marketing and promotion activities.
  4. 4.  Total investment for DYMC will be Rs 35,000,000  Personal investment by the owner – 2,500,000  Loan from bank – Rs 1,000,000  Total Start-up Expenses – Rs 2,105,000 (Expenses and assets purchased included)
  5. 5.  Services ◦ General packages  Covers general yoga and pranayam and meditation courses  practical session of one hour everyday  maintain their general health and wellbeing ◦ specific packages  4 days to learn the complete  have both theory and practice  Yoga and Meditation for Therapy (for common and chronic diseases)  Yoga and Meditation for Stress Management  Yoga and Meditation for Children, elderly people, students, teachers and other professionals
  6. 6.  Intensive Packages ◦ for those who are keenly interested to deepen and widen their knowledge and experience in different aspects of yogic sciences ◦ Depending upon need, interest and convenience, packages is as below ◦ 15 hours package ◦ 30 hours package ◦ 60hours package
  7. 7.  Workshop Clothing: T-Shirts, athletic shorts and pants.  Yoga training aides: Video tapes, instructional manuals, inspirational books. Newsletters
  8. 8.  Local customers o Children 5- 16 o Youth 16- 35 o Adults 35 and above o Middle and high income people o Health and beauty conscious o Have interest in yoga and meditation  Foreigners o Youths 16- 35 o Adults 35 and above o Middle and high income groups o Health and beauty conscious o Have interest in yoga and meditation
  9. 9.  DYMC intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market
  10. 10.  Establish relationships with physicians and other health professionals that will refer their patients to yoga classes at the DYMC.  Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising  Develop an online presence by developing a website and placing the Company’s name and contact information with online directories
  11. 11.  Products  Workshop Clothing: T-Shirts, athletic shorts and pants.  Yoga training aides: Video tapes, instructional manuals, inspirational books. Newsletters  Services ◦ General ◦ Specific ◦ intensive
  12. 12.  Different for each packages  Different for local and foreign customers  Prices for the packages are competitive
  13. 13.  Location – Chovar (southern part of Kathmandu valley)  Has historical as well as cultural value  Will be established in a rented house having enough lawn, greeneries and garden for peaceful environment for yoga and meditation  Five large workshop rooms  lot of people from differnet parts of valley move to Chovar for morning and evening walk and DYMC will attract those people to yoga and meditation.
  14. 14.  Use of flyers and posters  Use of pamphlets and leaflets  Website  Social media
  15. 15.  Owned by registered and certified yoga master Yoga Psychologist  M.A. in Yoga Psychology  Has been involved in Yoga since the last 15 years  Has previously established yoga training center in Pokhara
  16. 16. Senior management Operation Staff Customer Service yoga instructor Administrative Staff Accounting Sales- Marketing Administration
  17. 17.  Fixed Assets will be depreciated @15% per annum  Rate of interest for bank loan will be 15% per annum  Tax rate will be 20% per annum  Salary, rent and miscellaneous expenses will be increased by 10% per Annum  Variable cost will be proportionate to the sales  Divided paid at the end of year2, year 3, year4, year 5, are 300,000 , 400,000 , 500,000 , 1,000,000 respectively.  Loan from bank will be redeemed at the end of year 1, year2, and year3 are 200,000 , 300,000 , 500,000 respectively
  18. 18.  Projected Profit and Loss year Year 1 Year 2 Year 3 year 4 year 5 sales revenue 4,200,000 4,900,000 5,500,000 5,800,000 6,045,000 Total expenses 3,075,000 3,238,000 3,457,000 3,872,550 4,148,348 Profit Before Interest and Taxes 1,125,000 1,662,000 2,043,000 1,927,450 1,896,652 EBITDA 1,275,000 1,812,000 2,193,000 2,227,450 2,196,652 Interest 180,000 144000 90000 0 0 EBT 945,000 1,518,000 1,953,000 1,927,450 1,896,652 Tax paid 416,250 768,500 936,700 952,735 901,704 Net profit 528,750 749,500 1,016,300 974,715 994,948 Net profit/sales 12.59% 15.30% 18.48% 16.81% 16.46%
  19. 19. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Cash Flow from Operation (A) 53,750 1,104,500 1,152,300 1,407,715 1,214,948 Cash Flow from Investing Activities (C) -1,000,000 - -500,000 - - Cash Flow from Financing Activities (B) 4,320,000 -744,000 -890,000 -1,500,000 -1,000,000 Net Cash Flow generated during the year (A+B+C) 3,373,750 360,500 -237,700 -92,285 214,948 Add: Opening balance of Cash ----- 3,373,750 3,734,250 3,496,550 3,404,265 Closing balance of Cash 3,373,750 3,734,250 3,496,550 3,404,265 3,619,213
  20. 20. Year Year 1 Year 2 Year 3 Year 4 Year 5 Total Current Assets 4,193,750 4,484,250 4,356,550 4,134,265 4,419,213 Total Long- term Assets 850,000 700,000 1,050,000 750,000 450,000 Total Assets 5,043,750 5,184,250 5,406,550 4,884,265 4,869,213 Total Liabilities 1,015,000 806,000 512,000 15,000 5,000 Total Capital 4,028,750 4,378,250 4,894,550 4,869,265 4,864,213 Total Liabilities and Capital 5,043,750 5,184,250 5,406,550 4,884,265 4,869,213
  21. 21. 2. Solvency Ratios Debt Equity Ratio Debt/Equity 0.22 0.15 0.08 0 0 Debt to Capital Ratio Debt/Total Capital 0.25 0.18 0.1 0 0 3. Turnover Ratios Capital Turnover Ratio Sales Revenue/Capital 1.2 1.4 1.57 1.66 1.73 Fixed Assets Turnover Ratio Sales Revenue/Fixed Assets 4.94 7 5.24 7.73 13.43 Interest Coverage Ratio EBIT/Interest 6.25 11.54 22.7 0 0
  22. 22. 4. Profitability Ratios Net Profit Margin Net Profit/Sales 0.13 0.15 0.18 0.17 0.16 Return on Assets Net Profit/Assets 0.1 0.14 0.19 0.2 0.2 Return on Equity Net Profit/Equity*100 % 0.12 0.14 0.16 0.16 0.16 Return on Capital Net Profit/Capital*100 % 0.15 0.21 0.29 0.28 0.28
  23. 23.  Plan of selling the ownership of the company to some giant company at a premium  However, Shiva Basyal will require certain percentage of shares to sell the ownership  The company is expected to grow at a good pace  Company can even be merged in favorable circumstances.

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