car website launch

8/9/2019 Car Website Launch

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Car Website Project


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A feasibility study is an analysis of the viability of an ideathrough a disciplined and documented process of thinkingthrough the idea from its logical beginning to its logical end.

Feasibility study is carried out in order to assess the viabilityof a new project

It is primary and most important thing in development of aproject

Feasibility study?


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• Gives focus to the project.

• Narrows the business alternatives.

• Identifies new opportunities.

• Identifies reasons not to proceed.

• Provides valuable information for “go/no go” decision.

• Increases probability of business success by identifyingweaknesses early.

• Provides documentation that the idea was thoroughlyinvestigated.

Reasons to do this Study


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Market Feasibility

Financial/Economic Feasibility

Organizational/Managerial Feasibility

Environmental feasibility

Legal feasibility

Types of Feasibility


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• A feasibility report is the results of a feasibilitystudy. This report details whether or not a projectshould be undertaken and the reasons for that

decision.

Feasibility Report


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1. Introduction/Executive Summary

2. Background

3. outline of project

4. Methodology/method of analysis5. Overview of alternatives

6. Conclusion

7. Recommendation

Report Content


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www.tailormadecars.com


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How Do we Work? Select the car of your choice

Choose the variant (if any)

Body Customization options

Vinyl & Graphics

Performance Upgrades (if applicable)

Save and notify


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The IT sector has contributed considerably to changing India’s imslow developing economy to a global player

According to IBEF, IT industry is set to touch 225$ billion by 2020

IT workforce will touch 30 million by 2020, becoming the highesemployer

Reasons for growth among people:

– Lifestyle of consumers

– Affordability

– Socialisation

Trends and Future prospects


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Innovation and Up gradation – It will be one of the mostimportant requirement for any car buyer and user

Preferences

₋ Hardware specifications and product features₋ Brand name

₋ Price

₋ Value added services

Meeting unfulfilled need


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Serial Product Price

1 Wheel 10,000

2 Front Bumper 12,000

3 Rear Bumper 12,000

4 Sides 7000

5 Front Lights 10,0006 Rear Lights 4000

7 Tinted Glass 20,000

8 Body Colour 75,000

Average Price 18,750

The marketing study

Demand estimation/ Projection of the Market demand


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The estimated population is about 25,000 families

We estimated that the target customers owns 1 car inaverage

Our estimated actual target customers will be around 10% ofthe customer’s pool

The marketing study

Demand estimation/ Projection of the Market

demand


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The marketing study

Demand estimation/ Projection of the Market

demandPopulation (n) 20,000

Sample accepted the concept (d) 5%

Universe (k) 1,000

Expected demand over 1st year

D(t)= K*X’

1000*18750

= 1,87,50,000


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Site internal preparations

Rent

The location will be rented by 8,000 per month.

Payment of 3 months in advance = 3 * 8,000 = 24,000

Construction costs:

Technical Study

Initial Costs

Item CostFloor preperations 10,000

Wall painting and preperations 4,000

Electricity preperations 3,000

Others 5,000

Total 22,000


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Site

external preparations

Advertising costs

Miscellaneous costs

Legal documents

Item Cost

Singage 3,000

Lights 1,000

Total 4,000

Item Price

Fire equipments 1,000

Workers uniform 1,000

Miscellanous 1,500

Total 3,500

Item Cost

Commercial registration and tax card & licence 7,000

others 500

Total 7,500

Total initial expense for Y0 254,580

Item Price

1000 coloured Flyers 2,000

Big Banners 2,000

Total 4,000


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Manpower structure and costs

Serial Job description Quantity Cost Tota

1 Supervisor (1500 LE) 1 18000

2 Skilled worker (750 LE) 1 9000

3 Worker (500LE) 2 6000

4 Social insurance 4 360

Total cost


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Cost of funds

Taxes

Cost of funds

Bank loan 260K over 5 years 11%

Principal 260,000

interst rate (annual) 11%

Interst amount (annual) 28,600

Duration (years) 5

Total interst 143,000

Administrative fees (1.5%) 3,900

Total 406,900

The loan will be amotrized 6,782 per month

Cost of funds 81,380 per year

Year Gross Profit Tax (18%)

2014 (254,580) -

2015 90,237 16,243

2016 108,880 19,598

2017 127,061 22,871

2018 144,302 25,974

2019 185,456 33,382


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Total yearly Cash flow


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Total yearly Cash flowYear Item Cash in Cash out

Cash in 354,645

Rent (+10%) 105,600

Salaries (+10%) 40,440

Raw materials (+5%) 22,932

Utilities (+2%) 13,056

Miscellaneous 1,000

Cost of funds 81,380

Net 354,645 264,408

1

Year Item Cash in Cash out

Cash in 389,400

Rent (+10%) 116,160

Salaries (+10%) 44,484



Miscellaneous (+10%) 1,100


Net 389,400 280,520

2

Year Item Cash in Cash out

Cash in 425,225

Rent (+10%) 127,776

Salaries (+10%) 48,932



Miscellaneous (+10%) 1,210


Net 425,225 298,164

3

Year Item

Cash in

Rent (+10%)

Salaries (+10%)

Raw materials (+5%)

Utilities (+2%)

Miscellaneous (+10%)

Cost of funds

Net

4

Year Item

Cash in

Rent (+10%)

Salaries (+10%)Raw materials (+5%)

Utilities (+2%)

Miscellaneous (+10%)

Rent advance payment

Cost of funds

Net

5


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Total aggregated income and expenditures for the

project over 5 years

Year Cash-in Cash-out Gross profit Tax (18%) Net profit

2009 0 254,580 (254,580) (254,580)

2010 354,645 264,408 90,237 16,243 73,994

2011 389,400 280,520 108,880 19,598 89,282

2012 425,225 298,164 127,061 22,871 104,190

2013 461,794 317,492 144,302 25,974 118,328

2014 524,123 338,667 185,456 33,382 152,074


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The financial study

Investment profitability analysis

R0 = ( 0-254580 ) / 254580 (100.0)

R1 = ( 354645-264408+28600 ) / 254580 46.7

R2 = ( 389400-280519+28600 ) / 254580 54.0

R3 = ( 425225-298164+28600 ) / 254580 61.1 R4 = ( 461794-317492+28600 ) / 254580 67.9

R5 = ( 524123-338667+28600 ) / 254580 84.1

Simple rate of return – SRR


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Payback period – PBP

Year Cash-in Cash-out Net profit accumulated

2009 0 254,580 (254,580) (254,580)

2010 354,645 264,408 73,994 (180,586)

2011 389,400 280,520 89,282 (91,304)

2012 425,225 298,164 104,190 12,886 2013 461,794 317,492 118,328 131,214

2014 524,123 338,667 152,074 283,288


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Net present value - NPV

Assume discount rate = 10%

Year Cash-in Cash-out Gross profit Tax (18%) Net profit

2009 0 254,580 (254,580) (254,580)

2010 354,645 264,408 90,237 16,243 73,994

2011 389,400 280,520 108,880 19,598 89,282

2012 425,225 298,164 127,061 22,871 104,190 2013 461,794 317,492 144,302 25,974 118,328

2014 524,123 338,667 185,456 33,382 152,074


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THANK YOU

car website launch

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