Green Earth Products Business Model Marketing Essay

Published: 2020-08-04 22:35:03
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With the lifting job of expensive waste direction and increasing tendencies of environmental friendly merchandises used to cut down planetary heating, there will be an chance to recycle most of the fresh stuffs and doing them into something new and utile without bring forthing farther pollution.
There are two solutions which are recycling and recycling. However, reuse is much better than recycle because reuse produces less air and H2O pollution than recycle and recycle really cost less than recycling. Therefore, reuse is the best solution. Changing the wont to get down reusing merchandises and seting in their head that reuse merchandises are non ” dirty ” is our first measure. Educating the kids and giving reuse sample merchandises is how we implement recycling merchandise from immature age. Concentrating on clients and constructing our trade name consciousness is our competitory advantage.
Our primary mark market is kids as at immature age, the wont can be changed and at the beginning of their acquisition procedure. By educating those kids we can set in their head the importance of being green and attention about environment so it will go their lifestyle and civilization as they grow older. Our direction squad consists of the six laminitiss who are committed to acquire involved in the direction to the full.
As our initial capital needed, we need about $ 400,000 investing or loan. This fund will be used to run our day-to-day operation every bit good as purchasing assets for the company. We can acquire breakeven point ( BEP ) in the 3rd twelvemonth and in forth twelvemonth, we can give 25 % return on investing ( ROI ) . By the 3rd twelvemonth, if G.E.P can non acquire interrupt even, we will neutralize our stock list and other assets to pay off our debts.
The Opportunities
Harmonizing to www.reuters.com, acquiring rid of the waste in Singapore is really dearly-won and the little landfills can non incorporate the inordinate waste produced every twenty-four hours. The lifting jobs in Singapore are expensive of waste direction and little land countries to treat them. There are besides increasing tendencies of environmental-friendly merchandises used in the market and besides the consumer consciousness about planetary heating. There will be an chance to recycle most of the waste and doing them into something utile without bring forthing farther pollution.
The Description of the Business
How the proposed concern solved the job or fills the demand?
Reuse V. Recycle
Recycle and reuse are rather different from each other and most people are frequently confused by this. Recycle can be referred as any activities that lengthen the life of an point whereas recycling is the reprocessing of an point into a new natural stuff for usage in a new merchandise. Since there is an addition consciousness of the environmental-friendly merchandises, reuse becomes really of import. Reuse besides help to face the challenges of waste decrease, prolong a comfy quality of life, and supports a productive economic system.
Why reuse is better than recycle?
Reuse reduces the strain on valuable resources such as H2O, forests, and fuel
Reuse produces less air and H2O pollution than recycle
Reuse consequences in less risky waste than recycle
Reuse really cost less than recycling
Reuse creates an low-cost supply of goods and of first-class quality
Concept
With the job of expensive waste direction, reusing is a best manner to work out the job and besides can assist to cut down planetary heating. In developed state such as Singapore, there is a high consciousness of environmental friendly merchandises. However, merely a certain group of Singaporeans that are truly populating green with reusing and recycle. Therefore, our first measure is to alter the civilization, seting in their head that reuse merchandises are non dirty ” merchandises in fact reuse merchandises are clean merchandises for the user every bit good as environment. We besides want to alter the Singaporean ‘s wonts, every bit good as their day-to-day life style in order for them to get down recycling. By educating every bit good as promoting the kids and the young person, these immature 1s will acquire used to the manner of life with reuse merchandises to salvage the planet every bit good as their state. When reuse becomes their wont, the parents every bit good as people in their milieus will besides acquire affected by this wont. When reuse becomes Singapore ‘s life style, so we can present recycle merchandise to the market. The reuse merchandises can be electronics, furniture, fabrics, and family merchandises.
History of the company
Green Earth Products PTE LTD was formed by six friends who see the chance to carry through the demand of the turning environmental friendly merchandises in the market. The company was formed on 7th July 2010. The laminitiss have their ain accomplishments and capablenesss every bit good as anterior experiences that they can lend to the success of the company. Green Earth Products PTE LTD reproduces the plastics and fabrics waste doing them into something utile for the clients. The name Green Earth Merchandises ” is came to the laminitiss ‘ heads as they want to continue the Earth green with the debut of their merchandises.
Our company logo represents our company ‘s intent. Green Earth represents that our company want to continue a healthy planet and pollution free environment.
Our company motto is Reuse Like No Others ” .
Company Vision, Mission and Aims
Mission Statement
To make high value merchandises those are safe for environment and utile for everyone ”
Vision Statement
Our company visions are
To educate people about the danger and impact of planetary heating
To educate people about reuse merchandises
To make a better topographic point for present and future coevals
Aims
Short-run Aims
In the short term, we aim to
In the first 12 months, we want to acquire 100 % consciousness of our merchandises in the market
In the first 12 months, we want besides to educate in at least 50 schools island broad in Singapore
In the first 12 months, we want to keep our operating disbursals equal to grosss each month
Long-run Aims
In the long term, we aim to
In the 2nd twelvemonth, we aim to get down bring forthing our gross from gross revenues
In long term, we aim to be market leader in recycle merchandises industry
In the following five old ages, we aim to widen our concern to neighbouring states in ASEAN
Competitive Advantage
Competitive advantage of the our company is that we focus merely on our clients with edifice trade name trueness every bit good as educating them with the new tendency of making green environment. As many other green companies, they largely focus on their merchandises of being green and safe for the environment. In the instance of our company, we focus on our consumers with constructing our trade name trueness and besides making the tendency of recycling merchandises to our clients. With educating and besides giving illustration to Singaporean kids, we want to implement the construct of reuse in their life.
The Business Model
Green Earth Products concern theoretical account
Our concern theoretical account is really alone in the sense that we come out with our ain concern theoretical account. The direction squad creates our concern theoretical account which is the ” Green Education and Practices ” . Green instruction and patterns concern theoretical account is based on our company ‘s vision which educating and implement reuse as wont for our clients. This concern theoretical account chief intent are constructing strong relationship with our clients, making the tendency of reuse in day-to-day life of clients, and besides create strong trade name trueness in the bosom of the clients
The green instruction and patterns theoretical account is fundamentally based on the consumer larning procedure to construct strong trade name trueness. In the first phase, we address our clients with the job. Second phase, we provide them with all the information about the jobs and solution available, and the last phase, we introduce the best solution which is recycling merchandises.
As the best phase of human acquisition is childhood, so our chief mark market is immature kids. These immature kids might include kindergarten pupils and primary schools pupils. By supplying them with green instruction and presenting reuse as the best solution, recycling the merchandises can be their day-to-day wont in their future phase of life. After educating them with reuse merchandises, we give out sample of reuse merchandises for them to seek it out every bit good as the first phase of making the wont of recycling merchandises. This reuse wont will non merely impact these kids but besides will hold an impact on their environing environments such as parents and societal webs. With their reuse wont, they might besides learn or take others to get down utilizing reuse merchandises in the hereafter. As our company is the 1 who lead them to the new wont, whenever the clients think of reuse, they will straight relate with our company, Green Earth Products PTE LTD.
Making reuse as kids ‘s wont is the same of making the demand for reuse merchandises in the market. When demand for reuse merchandises is really high, our strong trade name will come into drama. With strong trade name equity, supplying values and high merchandise quality, we are confident that we will be the market leader in this market.
Current Status and Requirement
As Green Earth Products PTE LTD is a new company, the company is still in the beginning phase where investing needs to acquire in. With capital sharing of the stockholders, the company has an initial investing of $ 60,000.
Management Team
Management Team Review
The six laminitiss are committed to to the full affect in the direction squad. With their anterior experiences and abilities, G.E.P will hold advanced every bit good as originative directors in the squad. The six direction squad consists of Hendy Adistana, Dulani Shanika, Harshani Abeykoon, Alexander Sugondo, Ruvini Karunathilake, and Shanaka Perera.
Technical Expertness
Information Technology Expertise
To put up and plan our G.E.P web site, the company will engage an information engineering ( IT ) professional to plan our web site. This IT professional will besides assist the company intranet. With this expert aid, it will help the company to work more expeditiously.
Key Professional Service Providers
Law Firm
Green Earth Products PTE LTD will utilize the service of PKWA Law Practice to protect on the company ‘s rational belongingss every bit good as on giving advices sing concern jurisprudence. PKWA Law Practice screens on many different services for the concern such as general commercial contracts, employment issues, and corporate constructions. We decided to take PKWA Law Practice house as our jurisprudence house spouse as PKWA is really dedicated to their clients with guaranting every client ‘s demands are dealt with in a practical and cost efficient manner as possible.
The information about PKWA Law Practice Firm is
Location: 9 Temasek Boulevard # 09-03 Suntec City Tower Two, Singapore 038989
Contact: ( 65 ) 63322800, ( 65 ) 63322710
Web site: hypertext transfer protocol: //www.pkwalaw.com/index.html
Consulting and Accounting Firm
Green Earth Products PTE LTD will spouse with Aberdeen Consulting house. Aberdeen Consulting will supply G.E.P with one-year auditing, revenue enhancement planning, revenue enhancement conformity, and as our fiscal adviser. The direction of G.E.P appointed Aberdeen Consulting as our fiscal adviser because Aberdeen Consulting has the good repute with sensible fees. As GEP is a new company, the company can non afford to pass much money on this country.
The information about Aberdeen Consulting house is
Location: 10 Hoe Chiang Road # 06-02 Keppel Towers, Singapore 089315
Contact: ( 65 ) 65351789, ( 65 ) 65342550
Web site: hypertext transfer protocol: //www.aberdeenconsulting.com/
Company Structure, Intellectual Property, and Ownership
Organizational Structure
Organizational Chart
As Green Earth Products PTE LTD ( GEP ) is formed by six laminitiss ; the laminitiss are committed to acquire affect to the full in the direction squad. The six laminitiss are Hendy Adistana, Alexander Sugondo, Dulani Shanika, Harshani Abeykoon, Ruvini Karunathilake, and Shanaka Perera.
Green Earth Products PTE LTD Organizational Chart
This is Green Earth Products PTE LTD organisational chart. The pull offing manager will be Hendy Adistana. There are five sections in G.E.P such as fiscal section, operation section, human resource section, gross revenues section and selling section these sections will be control straight by pull offing manager with the aid of each section ‘s director. The fiscal director or bookkeeper is Dulani Shanika, the operation director is Shanaka Perera, the human resource director is Alexander Sugondo, the gross revenues director is Ruvini Karunathilake, and the selling director is Harshani Abeykoon.
Hendy Adistana
Hendy Adistana is from Indonesia. He is still taking classs in Singapore Institute of Commerce to obtain his unmarried man grade. In G.E.P, Hendy is appointed to be the pull offing manager as he had the anterior on the job experience for two old ages. His chief duty is to be after, form, take and command the overall direction of the company.
Dulani Shanika
Dulani Shanika is from Sri Lanka. She is besides pupil in Singapore Institute of Commerce. Dulani is first-class in computation and she got two old ages experience in banking. In 2009, she obtained Accounting sheepskin certification. In Green Earth Products PTE LTD, Dulani is appointed to be finance director. Finance director ‘s duties are keeping day-to-day fiscal control, seting annually budget, and supply general accounting of the company.
Shanaka Perera
Shanaka Perera is from Sri Lanka. He obtained diploma certification from Singapore Institute of Commerce and he continued his surveies for higher instruction. He is appointed as operation director in Green Earth Products PTE LTD. His chief occupations as operation director are to maintain twenty-four hours to twenty-four hours operations of the company, and seek to do the company more productive by supplying effectual ways in productions.
Harshani Abeykoon
Harshani Abeykoon is from Sri Lanka. She obtained marketing sheepskin certification from Staffordshire University and she continued her surveies in Singapore Institute of Commerce. With her character of careful planning and judgement, G.E.P direction appoints Harshani as our selling director. Her chief occupation is to pull off and organize all selling, advertisement, and publicity activities, behavior and analysis market research, develop and implement selling programs, and proctor, reappraisal and study on all selling activity.
Ruvini Karunathilake
Ruvini Karunathilake is from Sri Lanka. She besides obtained marketing sheepskin certification from Staffordshire University and she furthered her surveies in Singapore Institute of Commerce to obtain her grade. Her characters such as high fondness and female parent like attention are really suited for our public relation director, so we appointed Ruvini as our public relation director. Her occupation is to pass on the company ‘s policy, and construct the span between the company and client.
Alexander Sugondo
Alexander Sugondo is from Indonesia. He obtained his sheepskin in Singapore Institute of Commerce. He is chosen to be the human resource director in Green Earth Product PTE LTD. His occupation as human resource director is to pull off the employee benefits, recruiting, interviewing, train and engaging new forces.
Founder ‘s Occupation:
Monitor and command all the plants from the member.
Coordinate all the work done from each division or section.
Motivate and maintaining the integrity and teamwork among the members.
Help the division or other section when they need aids.
Bookkeeper ‘s Occupation:
Make the balance sheet and fiscal audit of the company every three months.
Keep and salvage all the income and disbursals statement.
Keep the company ‘s money.
Operation Manager ‘s Occupation:
Responsible for all the production procedure from buying stuff, procedure doing the merchandises and administering the merchandises.
Find efficient ways to make the operations.
Marketing Manager ‘s Occupation:
Plan and put to death the selling scheme.
Expands the company ‘s market and happen clients for the merchandise.
Human Resource Department ‘s Job:
Recruit possible employee that benefit the company for present and future.
Pull off the employee ‘s benefits.
Legal Structure
The legal construction of Green Earth Products Company is Private Limited. Private limited company is a blend of concern entity between corporation and partnership. The grounds of taking this legal construction are the proprietors can take part in the direction ; there are some revenue enhancement benefits for this type of concern endeavor, each member merely pays self employed revenue enhancement to the authorities and free of legal demands such as one-year study, and managers meetings.
Ownership of the Company
The ownership of the company is divided every bit among the six members of direction squads. When the G.E.P PTE LTD is ab initio funded by portion capital, the company issued 120 ( one hundred 20 ) portions which is given and divided every bit to its six stockholders. Each member receives 20 ( 20 ) portions each which represent about 16.6 % of the company ownership.
Industry Analysis
Macro economic tendencies affect the waste direction and recycling industry in Singapore. Macroeconomic include population growing, alterations in the construction of industry and authorities ordinance. As the population additions so does the figure of waste points. Another factor such as addition in income and increase in involvement for environmental protection ensuing in addition in formal, province sponsored recycling enterprises. This consequences in worsening waste for disposal but creates chances in the reuse merchandises market, therefore taking to a major displacement in the construction of the industry.
Industry Tendencies
In this twenty-first century, many people are more cognizant and understanding the impact of planetary heating. Most of the authoritiess around the universe besides back up the companies that want to make their concern in green merchandise or educating people the importance of being green. Green merchandises are really popular in Singapore they are non merely inexpensive but besides lasting. Many bing companies have adapted their fabrication procedure so that they merely use green natural stuff. Schools have besides started to learn their pupils about the planetary heating and its impact. There is an increasing in the figure of companies which making their concern in doing green merchandises such as Elm and Zero Waste Singapore.
Target Market
Singapore is the perfect topographic point to get down this concern as the people in this state have high degree of consciousness as respects to caring for the environment. The Green Earth Products PTE LTD intends to aim specific market in order to bring forth gross revenues. We have decided that kids are the best campaigner for our mark market.
This immature coevals of people will be our primary mark market. Peoples at this age will be easier to educate as they are in the procedure of acquisition and deriving cognition. By educating those kids we can set in their head the importance of being green and attention about environment so it will go their lifestyle and civilization as they grow older.
Rivals
Potential Rival
Presently there is no rival for this industry, but we have identified some of the possible rival that already exists in the industry. Those possible rivals include Zero Waste Singapore, Elms Industrial PTE LTD, SembCorp Environment PTE LTD. These companies making their concern in recycling industry but they are non the same as our company in term of merchandises class, since some of them are recycling electronic waste. They are consider as our possible rival right now and can be our rival in the hereafter.
Supplier
We can acquire the stuff from the recycling aggregator every bit good as contributions. It would be more profitable for us if we get the natural stuff from contributions. In Singapore there are a batch of people that would desire to donate their old points but they do non cognize where to donate it. Due to the high figure of people that would desire to donate their points, some charities may even reject the contributions because it was excessively much.
Barriers to Entry
The barrier to entry from the authorities in these recycling industries is considered low. For illustration authorities labour ordinance. Government labour ordinance could impact the recycling industry straight. There are many industry participants who participate in the recycling sector, have noted that authorities quotas make it hard to obtain sufficient manual workers for their operations.
PESTLE Analysis
Social
The clients have become more sophisticated and demanded high value merchandises. A green company must be able to bring forth a merchandise with high value in order to derive the competitory advantage over rivals.
Technology
Technology, in recent old ages, has significantly improved and been continuously launched to the market. This allows company in recycling industry to develop a new manner to recycle or recycle the merchandise or waste.
Legal
Singapore authorities will back up the company that will assist in work outing the waste job every bit good as taking attention of the environment. This support can be shown by giving subsidies to the green company. Government supports in this industry will give rise to a new company.
Environment
Environmental issues have become more important as people concern more about pollution and planetary heating. A company that can bring forth a high value merchandise and friendly to the environment will derive a competitory advantage.
Industry Attraction
Addition in tendencies for green merchandise, addition in consciousness of the impact of planetary heating and expensive waste direction, give rise to many new companies which produce green merchandises from recycle or reuse. In this twenty-first century green merchandises is at growing phase as many new originative thoughts are being introduced to the market. Recycling merchandise industry is really popular in developed state such as Singapore, where there is a high demand for environmental friendly merchandises.
Green Earth Product ‘s Value Chain
Primary ACTIVITIES
Inbound Logistic
Our natural stuff ( unwanted fabric ) came from recycle goods aggregator and besides contributions from people who no longer necessitate their old fabric. These recycle goods aggregators will be our contracted provider. We are be aftering to acquire a long term provider alternatively of short term. After the house receive the natural stuff, so they raw stuff will be send to fabricating procedure. This inward logistic activity will be based in Jakarta, Indonesia.
Operationss
Once the natural stuff received by the operation squads, the procedure of turning the natural stuff into finished good can be started. Our operations squads will treat this fabric into schools bag by run uping them and plan them. We will hold our seamster expertness for this procedure.
Outbound Logistic
Once the seamster finished their occupation and the poke bags are done, the following measure is to direct these poke bags to our office based in Singapore, from here we will so direct the goods to the schools or people who have ordered our merchandises.
Selling and Gross saless
Our selling schemes that we have are both on-line and public relation. For the on-line selling or gross revenues we are traveling to utilize the benefit of societal networking such as Facebook. We are traveling to set our merchandise ‘s image every bit good as the information and the monetary value. Customers can besides order our merchandise from our chief web site. For the public relation, we are traveling directly to the schools that have ordered our merchandises. School can order our merchandises by phone, facsimile or through online.
Service
Our company provides instruction service. We are selling our merchandise every bit good as educating those who bought it. For schools we have our staff to learn the pupils about the planetary heating consequence and ways to cut down it.
Support ACTIVITIES
Procurement
Our natural stuff came from recycle goods aggregator and besides contributions from people who no longer necessitate their old fabric. These recycle goods aggregators will be our contracted provider. We are be aftering to acquire a long term provider alternatively of short term. We collect our natural stuff in Indonesia because we can acquire more and cheaper monetary value than Singapore. By making this we can cut down our production cost.
Human Resource Department
G.E.P PTE LTD human resource section will engage people with at least diploma enfranchisement. Employees will be trained non merely in their specific operational responsibilities but in the doctrine and applications of our construct. Employees will be rewarded harmonizing to their public presentation.
Firm Infrastructure
Our direction construction consists of the laminitis which besides works as the pull offing manager, bookkeeper or fiscal director, operation squad, human resources section, public relationship section and selling section.
Technology Development
G.E.P PTE LTD utilizing the latest engineering for their operations keeps path of the order and besides to cut down the operation cost by being efficient.
Selling Plan
Merchandise scheme
Our merchandise scheme is based on marketing mix schemes which is merchandise, publicity, monetary value and arrangement. The initial merchandise of our company is the sample bag.
Merchandise
The first component of marketing mix is merchandise. Our merchandise provides solution to the job or demands of the market. The initial merchandise that our company devising is bags. These bags are produced with recycling unwanted fabric as our chief intent is to recycle this stuffs and doing them into something utile. These bags will be sold at breakeven point as to demo illustration to immature kids how to recycle merchandises.
Promotion
This component of marketing mix is really indispensable to our company. Promotion provides clients with information. Educating and altering the clients wont is one portion of our publicity. Public relation is our chief publicity scheme. Our public relation director goes to kindergarten and primary schools and pass oning every bit good as educating about our company and the reuse merchandises.
Monetary value
The following component of marketing mix is the monetary value. Price normally represents the value. As we are selling the sample bag at breakeven point, this monetary value will stand for value to kids. With selling the bag, the kids besides learn that reuse merchandises has value itself.
Placement
Topographic point represent where the clients can acquire the merchandises every bit good as merchandise handiness in the market. Presently, our merchandises are sold through our web site and besides during our visit to the schools in Singapore. However, in the close hereafter, we are administering our merchandise to retail shops such as Fair Price, Cold Storage, every bit good as Popular.
Concept Testing
For construct testing, our first twelvemonth operation will be our proving period. Within this first twelvemonth, any ailments and feedback will be taken into history to do better merchandises every bit good as services.
Pricing Scheme
As beginning of our operation, we implement economic pricing scheme by minimising the cost of selling and production. This economic pricing is besides one of our selling schemes for get downing to pull and do our merchandise affordable to our clients. As our monetary value is low and low-cost, we besides want to do an feeling that reuse merchandises can be inexpensive but high lastingness and quality.
Channelss and distribution
For channels and distribution, G.E.P is presently merely selling the sample bags through our web site and during our visit to schools. However, in the hereafter, we will spouse with local retail merchants such as just monetary value, cold storage, to sell our merchandises.
Promotions and Ad
For our company ‘s publicity and advertisement, we are presently depended to a great extent on cyberspace publicity through facebook, chirrups, and our web site and besides our public relation.
Internet
With limited budget for publicity and advertisement, cyberspace is the most effectual media to acquire aggregate advertisement and publicity. Puting up of facebook page, follow us on chirrups, and our web site is the methods of our cyberspace advertisement. Internet advertisement can be categorized as low in cost but high impact.
Public Relation
Our public relation is really of import to our company as it helps presenting and pass oning our company and merchandises to the clients. Public relation besides plays of import functions in making strong trade name trueness by educating the kindergarten and primary schools about reuse merchandises. Our public relation besides creates a strong relationship between our company and our clients.
Operational Plan
The undermentioned subject will place the proposed operational program for Green Earth Products Corporation. Those operational programs includes installations, hours of operation, method of production
Facilities and Offices
Green Earth Products PTE LTD chief office is in Jurong West. We setup up our concern at that place in order to cut down cost as the rental cost at Jurong West is cheaper than other countries.
Hours of Operation
Green Earth Products Corporation will open from Monday to Friday five yearss a hebdomad. The operation will get down at 08:00AM to 18:00PM. The installation and office will be closed during public vacation.
Method of Production
Our merchandise is really simple and easy to do. The quality of the merchandise is based on the stuff and merchandise design. Our method of production is fundamentally an assembly of line where the first phase is for the interior decorator to plan the merchandise and the following measure is for the operation section to do the merchandises. In order to maintain competitory in the market every bit good as minimising our production cost, we are outsourcing our production procedure in Indonesia.
Method of Delivery
G.E.P PTE LTD method of bringing is by directing public relation director to kindergarten and primary school. By directing our public relation director to school, she will be able to educate the pupils about the importance of being green every bit good as the impact of the planetary heating and how to forestall it. At the terminal of the presentation the pupil will have poke bag.
Business Partnership
Supplier
For the concern spouse, we are traveling to look for the dependable provider. The intent of this partnership is so that we will non hold problem to happen the natural stuff needed for our merchandise and we can have the natural stuff at the right clip. By constructing relationship with our provider we can cut down our cost. We are be aftering to hold a long term relationship with provider instead than short term relationship with provider.
Quality Control
Our quality merchandises are depending on the quality of the natural stuff itself. Therefore, it is of import to keep the natural stuff quality from the provider. There will be a random cheque on every 20 merchandises produced in order to maintain our merchandise quality as G.E.P outlook.
Customer Support
For client support, G.E.P PTE LTD supply information centre and recycle acquisition centre. With sing to schools, we educate the pupils about reuse and planetary heating impacts every bit good as selling our reuse merchandises such as poke bags. Our office will be the acquisition centre for reuse and besides the exhibition for how to recycle unwanted points.
Fiscal Plan
Income Statement
Projected Income Statement G.E.P PTE LTD
A
2011
2012
Gross
Gross saless
$ 300,000.00
$ 700,000.00
Cost of goods sold
$ 45,000.00
$ 100,000.00
Gross Net income
$ 255,000.00
$ 600,000.00
A
Operating Expense
Utilities
$ 10,000.00
$ 10,000.00
Salary
$ 180,000.00
$ 190,000.00
Ad
$ 80,000.00
$ 100,000.00
Assorted
$ 15,000.00
$ 15,000.00
Rent
$ 80,000.00
$ 80,000.00
Entire operating disbursal
$ 365,000.00
$ 395,000.00
A
Net Income
– $ 110,000.00
$ 205,000.00
Cash flow Statement
Green Earth Products PTE LTD
Cash Flow Statement
A
For the Year Ending 12/31/2011
For the Year Ending 12/31/2012
A
CASH REVENUES
A
A
A
A
A
A
Gross from Product Gross saless
$ 300,000.00
A
A
$ 700,000
A
A
Entire CASH REVENUES
A
$ 300,000.00
A
A
$ 700,000
A
A
CASH DISBURSEMENTS
A
A
A
A
A
A
Cash Payments to Trade Suppliers
$ 45,000
A
A
$ 100,000
A
A
Wages and Wagess
$ 180,000
A
A
$ 190,000
A
A
Promotion Expense Paid
$ 80,000
A
A
$ 100,000
A
A
Professional Fees Paid
$ 12,500
A
A
$ 12,500
A
A
Rent/Mortgage Payments
$ 80,000
A
A
$ 80,000
A
A
Insurance Paid
$ 2,500
A
A
$ 2,500
A
A
Utilities Payments
$ 10,000
A
A
$ 10,000
A
A
Entire CASH DISBURSEMENTS
A
$ 410,000
A
A
$ 495,000
A
A
RECONCILIATION OF CASH FLOW
A
A
A
A
A
A
Opening CASH BALANCE
A
A
$ 60,000
A
A
– $ 50,000
Attention deficit disorder: Entire CASH REVENUES
A
A
$ 300,000
A
A
$ 700,000
DEDUCT: Entire CASH DISBURSEMENTS
A
A
$ 410,000
A
A
$ 495,000
Shutting CASH BALANCE
A
A
– $ 50,000
A
A
$ 155,000Balance Sheet
Green Earth Products PTE LTD
Balance Sheet
A
Projected for
2011
2012
Assets
A
A
Current Assetss
A
A
A
A
Cash
$ 60,000
$ 0
A
Account Receivable
$ 300,000
$ 753,000
A
Inventory
$ 45,000
$ 100,000
A
Supplies
$ 1,000
$ 1,000
A
A
A
A
A
A
A
A
Entire current assets
$ 406,000
$ 854,000
A
A
A
Property, Plant & A ; Equipment
A
A
A
Equipment
$ 10,000
$ 10,000
A
Less: Depreciation
( $ 2,000 )
( $ 4,000 )
Net Property, Plant & A ; Equipment
$ 8,000
$ 6,000
A
A
A
A
Entire Assetss
$ 414,000
$ 860,000
Liabilities
A
A
Current Liabilitiess
A
A
A
Account Collectible
$ 250,000
$ 395,000
A
Wagess Collectible
$ 180,000
$ 190,000
A
Accured Expense
$ 34,000
$ 10,000
Entire current liabilities
$ 464,000
$ 595,000
Entire liabilities
$ 464,000
$ 595,000
STOCKHOLDER ‘S EQUITY
A
A
A
Common Stock
$ 60,000
$ 60,000
A
Retain Earning
( $ 110,000 )
$ 205,000
Entire shareholder ‘s equity
( $ 50,000 )
$ 265,000
Entire liabilities & A ; shareholder ‘s equity
$ 414,000
$ 860,000
Gross Profit Ratio
Gross Profit Ratio
A
Gross saless
Gross Net income
Ratio
2011
$ 300,000
$ 170,000
56.7 %
2012
$ 700,000
$ 600,000
85.7 %
Net income or Gross saless Ratio
Profit/Sales Ratio
A
Gross saless
Net income
Ratio
2011
300,000
-110000
-36.7 %
2012
700,000
205000
29.3 %
Expense or Gross saless Ratio
Expense/Sales Ratio
A
Gross saless
Expense
Ratio
2011
300,000
365,000
121.7 %
2012
700,000
395,000
56.4 %
General Assumption for fiscal program
Current involvement rate 1.0 %
Tax rate 30 %
Our mark gross revenues are 150,000 pieces in the first twelvemonth
The initial investing is merely $ 60,000
Capital Requirement
In first twelvemonth, we need about $ 400,000 investing or loan. This fund will be used to run our day-to-day operation every bit good as purchasing assets for the company. In exchange for initial $ 400,000 invested, we will publish portions harmonizing to the current market value of the company.
Payback
At the beginning, with investing or loan of $ 400,000, we can acquire breakeven point ( BEP ) in the 3rd twelvemonth. By mentioning back to our net income and gross revenues ratio, if G.E.P can keep 30 % net income border in the 3rd twelvemonth, G.E.P will acquire interrupt even at this twelvemonth. On the 3rd twelvemonth onwards, G.E.P can vouch at least 25 % return on investing each twelvemonth get downing on forth twelvemonth.
Exit Scheme
By the 3rd twelvemonth, if G.E.P can non acquire interrupt even, we will neutralize our stock list and other assets to pay off our debts. Another issue scheme, we might sell our thoughts every bit good as our company to new investors.
Critical Hazard Factors
Management Hazards
For G.E.P, there are some direction hazards that we must see and happen the solutions such as underperforming directors, struggle within direction and personal grounds over company ‘s involvement.
Underperforming Director
Ineffective or unmotivated directors in direction squad will be lay off within three months after having the warning missive from direction. If she or he is one of the stockholders, so the remainder of the directors must hold to the determination of firing one of the directors and give a valid ground and grounds before the concluding determination can be made.
Conflict of Interest
Conflict of involvement is one the serious job that most of the companies will confront. For such event when this job happens or happen for illustration one of the director decided to travel back to his or her state for personal ground, depending on who that director is the others directors will so be able to do a determination of whether to happen a replacement or shut the company.
Selling Hazards
Since our construct and our merchandise are new, the opportunities of failure are at that place. Marketing failure can happen when the wont is non changed and the reuse merchandises are non sold up to targeted degree. When this selling failure happens, G.E.P will alter its selling program and besides publicity tactics.
Operation Hazards
The operation hazards that G.E.P must take consider is that struggle with the providers. Conflict with providers might extinguish our natural stuffs and besides upset our outsourcing operation. To extinguish this, G.E.P is doing its ain collection topographic point for its client to donate or sell their fresh points as our natural stuffs.
Fiscal Hazards
There are some fiscal hazards for G.E.P such as foreign exchange rate hazard. Since we outsource our merchandise to Indonesia, foreign exchange between Singapore currency and Indonesian currency stableness is really of import to our operation. However, the addition in Indonesian rupiah can impact the cost of our merchandise ‘s monetary value.
Mentions
Trash and burn: Singapore ‘s waste job, www.reuters.com, retrieved from hypertext transfer protocol: //www.reuters.com/article/idUSSP9046620080522 on 24th July 201

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