BUSINESS PLAN

Goo Ban Investment

Business address: Po Box 1078 Maun

Residential address: Sedie ward Maun

Contacts:76782521

BY

Ditiro Gaothobogwe
Table of Content Page
EXECUTIVE SUMMARY................................................................... 1
1.0 Abbreviations and Acronyms............................................................1
2.0 BUSINESS IDEA ........................................................................1
3.0 PROJECT DESCRIPTION ..............................................................3
4.0 MARKETING STRATEGY ..........................................................3
4.1 Competition ............................................................................3
4.2 Target markets ............................................................................................................3
4.3 Presentation .................................................................................................………..3
4.4 SWOT Analysis ........................................................................................................4
5.0 OPERATIONAL PLAN..................................................................5
5.1 Production process ................................................................ ………6
5.2 Processing and Grading .....................................................................6
5.3 Transportation .....................................................................................6
5.4 Pricing and labeling ...........................................................................6
5.5 Marketing ..........................................................................................6
6.0 ORGANIZATIONAL PLAN ..............................................................7
6.1 Internal organizational structure .........................................................7
6.2 Partner strategy ...................................................................................7
7.0 FINANCIAL PLAN ...............................................................................8
7.1 Initial Investment .................................................................................9
7.2 Assumptions........................................................................................ 9
7.3 Projected income statement (Cash Flow) ………………………………………10
Trading Result..........................................................................................11
7.4 Balance sheet assumptions .................................................................12
Projected balance sheet .........................................................................13
1.0 EXECUTIVE SUMMARY

The proposed Goo Ban Investment for taxi services transportation in Maun according
customers’ preferences.the taxi will be usel to customers in Maun and surrounding
areas .

Goo Ban Investment will start to realise profits in the first year of its operation but it will
not pay out dividends during this period. In order to achieve satisfactory results and
minimize labour costs, the taxi will be managed by the directors themselves with the
assistance from hired workers.

1.1Abbreviations and Acronyms

SWOT
Strength, Weaknesses,
Opportunities and Threats

2.0 BUSINESS IDEA

The Most Promising Option for the Goo Ban Investment is to provide high quality taxi
services which is safe and worth to carry passengers and there luggages safely until to
there destinations our taxi will be more safer and all seats of our clients will be
provided with safety belts .

The innovation of our taxi services will be organised as follows:

Processing and Safety: The taxi that we will be using will be brand new and its condition
will be good and safe for our customers. Our bus seats will be having seats belts in
each of them.
Marketing:
The taxi will have to be a quality that is preferred by potential customers and that is
above usual market standards. There will be need for periodic market research to
maintain customer conformity and determine current preferences. The producers will
also go out to bus ranks and malls to advertise their special taxi. Pamphlets will also be
distributed
2.0 PROJECT DESCRIPTION
The taxi is certified to carry 4 passengers seated as customers’ expected standards.
The taxi will run from mornings until late circulating around Maun. The funds will be
from CEDA which will be payable after the short period. This fund will be a revolving
fund which should be passed onto new producers who intend to start a project which
meets the criteria.

3.0 MARKETING STRATEGY

Due to low transportation and shortage, people in Maun and neighbouring villages are
takin at lot of time in bus stops which make them ending up going late or attending
there neccesities late nor missing there needs because of lack of transportation,taking
a while in bus stops can lead to crime where people a being attacked by thieves or even
predators since the region have a lot of wild animals.The findings from the market
analysis revealed that most customers do not like to wait for a very long time which can
lead them to lose hope and ending up going back home.
3.1COMPETITION
The main local competitors for this project are taxi services who are already operating.
There are some private cars which can also be the problem due to stealing customers
and they are slightly cheaper but customers do not favour their quality and safety.
These small private transport competitors are not safer.

3.2 Target markets

The project will target customers in Maun and neighbouring villages. However the
project is envisaged to expand to other regions. This entails frequent markets analysis
in order to determine production quantities and qualities and ensure consistence,
reliability and trust on the product.

3.3 Presentation
Goo Ban Investment will provide transport to all customers and ensure safety as to
accommodate all its customers
3.4 SWOT Analysis

The stament below shows the Strengths, Weaknesses, Opportunities and Treats of the
intended taxi services

Stament 1 : SWOT Analysis

Strength

-One of the advantages offered by Goo Ban Investment is that it will provide high quality
transportation and safety to its customers.
-Drivers will always be under maximum supervision
-Integration of different taxis to different destinations
- Labour is readily available
Weakness
- Project members live very far from the project site and this makes some routine
operations difficult. Also harsh weather conditions.

Opportunities
- Goo Ban Investment will create employment for many taxi drivers as they will get
income from the retained earnings
- When the product is advertised well the market share will increase hence the profits
will also increase.
- There is room to expand production to road runners like buses and combies

Threats

Maintenance costs
High initial investment is required for the maintenance of the taxi,warehouse and offices
Competitiors
There are many competitors for this project and this will require high quality and
introduce innovations that have not been introduced by their competitors.

4.0 OPERATIONAL PLAN

The taxi will be operating from morning until late as to cestify it customers

4.1 Production process

The Goo Ban Investment taxi services will be operating in Maun and surrounding
areas .

4.2 Pricing
Our prices is p8.00 a normal journey for speacial price is p33.00 .This prices are
standard and are made by the Ministry of transport .

4.3 Marketing
The flyers will be distributed in mall and bus ranks for advertising the bus and its
services to the customers

5.0 ORGANIZATIONAL PLAN

Internal organizational structure

Management committee
Management committee will comprise 2 chairpersons from each of the 2 groups of
Marketing and production committees. This committee will be involved in the
coordination and management as well as making the overall decisions. It will ensure
implementation of the producers’ objectives and activities. Since there is a finance
officer in this committee he/she will see to it that costing, budgeting, procurement of
inputs and fund raising is carried out properly. It will also be responsible for keeping of
financial records, allocation of funds, decision making in finance and group saving
schemes. This group will be responsible for supervising and monitoring financial
records of the 2 groups, it is subject to internal or external auditing at regular intervals.

Production committee
It will consist of seven (7) members one being the chairperson of the committee. The
group will support and promote production by ensuring the well running of fowl runs,
brooders, store rooms and procurements of inputs along with the necessary
maintenance that will be required. It will also be involved in keeping all the production
records and maintain accurate records of taxis and growth .

Processing committee
These will be involved in all the processing activities of pricing.

Marketing/Sales committee
It will consist of 3 members. This committee will be involved in advertising other taxi
services.These are bus services which are already operating who will assist in providing
a look and learn environment in their project sites. Our taxi services will be expected to
visit these other services’ projects’ sites and observe each and every step on taxi
sevices.
5.0 FINANCIAL PLAN
This section details calculations, assumptions and methodologies used as a foundation
for the projections of the expected financial performance of Goo Ban Investment.
The price will differ according to the destination distance .we will be paying 7%
corporate tax.
 5.1 Projected cash flows

Table 9 shows the summary of cash inflows and outflows for Goo Ban Investment.
Table 9: projected cash flows

Statement of cash flows Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Net income 2840 62890 63520 64160 64800 65450 6610
0
Adjustments to reconcile net income
to cash provided by operating
activities
3000
Depreciation 30000 30000 30000 30000 30000 30000 0
Changes in receivables -76000 -760 -770 -770 -790 -790 -800
Changes in inventory -18530 -60630 -790 -800 -810 -810 -830
Changes in creditors 7290 130 80 80 90 100 110
Changes in payables 17530 200 170 180 180 190 180
Total adjustments -39710 -31060 28690 28690 28670 28690 2866
0

Cash provided by operating activities -36870 31830 92210 92850 93470 94140 9476
0
Cash flows from investing activities
Capital expenditure

Investment in fixed assets -213600 0 0 0 0 0 0

Net cash used in investing activities -213600 0 0 0 0 0 0
Cash flow from financing activities

Capital expenditure 292600

Dividends distributed 0 -33470 -33810 -32080 -32400 -32730 -
33050
Cash provided by financing activities 292600 -33470 -33810 -32080 -32400 -32730 -
33050
Cash at the beginning of the year 0 42130 40490 98890 159660 22073 282140
0
Changes in cash 42130 -1640 58400 60770 61070 6141 61710
0
Cash at the end of the year 42130 40490 98890 159660 220730 28214 343850
0

Goo Ban Investment will start to realise profits in the first year of its trading but
dividends will only be paid from the year 2 onwards.
 5.2 Break- even analysis

Table 7.1.8 shows the volumes needed for Goo Ban Investment to break even. In year of
Goo Ban Investment has to produce produce more.

Table 10: Break even analysis

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Total Revenues 98800 422180 426400 430670 434970 439320 44372

0
Total variable costs 56810 228500 230800 232660 235000 237340 23972
0
Total Fixed costs 14240 20500 20710 21350 21550 21780 21990
Break even volume 838 1206 1218 1256 1268 1281 1294

5.3 Sensitivity analysis (see table 7.1.9)

It is a planning tool or technique for assessing the impact of changes on costs,

benefits, and net gains.

Table 11: Sensitivity analysis

Sensitivity analysis Worst case Most likely Best case

Average net profit P17150 P55680 P94470
Average net profit 3.50% 13% 21%
margin
Payback period (years) 7 years 8 months 3 years 3 months 1 Year 1 month

6.0 RECOMMENDATIONS AND KEY SUCCESS FACTORS

In order to achieve good results Goo Ban Investment must ensure that:
- Proper security and safety to customers so crime is minimised
. - Acces to the internet and charging
- Regular checking of safety to on our customers
- Securing customers luggage at all times
- Safety belts and well comfortable seats

7.0 ECONOMIC IMPACT EVALUATION

Goo Ban Investment is envisaged to empower the producers with expert knowledge and
skills in the practical production, processing and marketing of quality taxis. In turn their
economic, social, health and safety