BUSINESS PLANINSTANT MOVERSMaldives National University: Faculty of Management & Computing

Bachelor of Business | Semester 5

Prepared by:

Samih Mohamed|15576 Nasiha Khalid|8195 Ibrahim Shazin|12131

Fathimath Suha|12108 Fathimath Hashiya|9860 Zihuna faiz|13185

Ibrahim Shareef|19921

ContentsExecutive Summary...................................................................................................3

1.1 Company Profile................................................................................................5

1.1.1 Location(s)...............................................................................................5

1.1.2 Vision..........................................................................................................6

1.1.3 Mission........................................................................................................6

1.2 Strategic Objectives..........................................................................................7

1.2.1 Long term objectives...................................................................................7

1.2.2 Short term objectives of the company........................................................7

1.3 Management Summary.....................................................................................8

1.3.1 Management Team.....................................................................................8

1.3.2 Hierarchy of Responsibilities.......................................................................9

1.3.3 SWOT Analysis..........................................................................................10

1.3.3 PESTEL Analysis........................................................................................10

2.0 Product/Service..................................................................................................12

3.0 Market Analysis..................................................................................................15

3.1 Market Segmentation......................................................................................15

3.2.1Target Market.............................................................................................15

3.2.2 Market Trends..............................................................................................16

3.2.3 Competition...............................................................................................17

4.0 Strategy and Implementation.............................................................................17

4.1Value proposition.............................................................................................17

4.2 Marketing Strategy..........................................................................................17

4.3 Positioning Statement.....................................................................................18

4.4 Pricing Strategy...............................................................................................18

4.4.1 Pricing of Instant Movers Services.............................................................18

4.5 Promotion Strategy......................................................................................19

5.0 Financial Plan.....................................................................................................21

5.1 Startup Expenses and Capitalization............................................................21

5.2 Sales forecast..................................................................................................22

5.2.1 Sales forecast for five years......................................................................24

5.3 Projected income statement...........................................................................24

5.4 Projected Balance Sheet.................................................................................26

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List of Reference.......................................................................................................27

Annex....................................................................................................................... 28

Annex: 1. Supplies required for three months.......................................................28

Annex: 2. Total number of sales as for 12 months................................................28

Annex: 3. Moving Materials...................................................................................29

Annex: 4. Survey Findings.....................................................................................30

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Executive Summary

Instant Movers Pvt Ltd is a start-up company, located in Male’/Maldives,

which is totally new business in Maldives as there is no other packers and

movers company currently operated in the country. However, we believe

that there is potential for such a business in Male’ since a lot of individuals

moves to houses on almost a daily basis and there are difficulties that these

households face during the move.

The company will be established in November 2011, by the two founders of

the company (Mr. Ibrahim Shareef and Mr. Samih Mohamed). Instant Movers

have developed its strategic goals in line with its vision and mission, as well

considering its core values. The company will be employing qualified

employees for its operations and utilize quality equipment, packing materials

and moving techniques that best meet the interest of clients.

The management team of the company will be initially consisting of four

members and we will be employing six staffs to carry out the daily

operations of the company. As the business prospers, we will be hiring

additional employees to accommodate increasing demand of our clients. In

order to understand the internal strengths, weaknesses, opportunities and

the threats for the company we have developed a SWOT analysis which

indicated that our main strength is that we will enjoy first mover advantage.

Further, we have also used the PESTEL analysis to examine the general

environment of the business to identify key trends and events. The recent

tax policy that the government has established is among the key political

factors that is facing the company. Economic factors such as fluctuation of

the exchange rate and high inflation will be some of the challenges that

Instant Movers needs to address. Moreover, we will be acknowledging the

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key social, technological, environmental and legal factors that will affect the

company’s operations.

The services which will be offered at Instant Movers includes packaging

services, (packing options are; full service packing, fragile packing and do it

your self-packing), and household moving services (this includes loading,

transportation, loading and unpacking services).

Through a market survey conducted,from the data analysis we have

segmented our market and targeted the household living in the Male’ as our

main target market. The recent trends in the market and competition that

the company will face in the market also have been addressed in this

business plan. Finally, we also have discussed the strategies and

implementation of those strategies along with the financial plan in this plan.

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1.1 Company Profile

Instant Movers Private Limited Company is a totally new and unique business

in Maldives, which will be started on November 2011. The business was

initially an idea that came from a group of friends who were enjoying a

coffee at Alfresco, and one of them started talking about his bitter personal

experience of moving to a new house. The discussion went on for a while as

they started to brainstorm about the possibility of a Movers business feasibly

being operated in Male’.

Instant Movers is a privately held partnership business among the 2 owners

of the company Mr. Samih Mohamed, and Mr. Ibrahim Shareef. These owners

will be working as partners and each have contributed 60% personal finance

raised for the start-up capital and while other 40% of the capital will be

raised through debt finance. These owners will work with the management

team of the company overlooking the works of the lower level employees.

The company’s top priority will be in providing safe, timely and trouble-free

relocation services for our clients.We will be assisting our clients in packing

their valuables and household goods and provide relocating services to move

to a new destination. The team members of the company are highly

committed in providing service related to relocation.

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1.1.1 Location(s)

The office of Instant Movers will be located at G. Alisha, (Male’), 1st floor,

which is a property of one of the partner’s Mr. Ibrahim Shareef. We have

selected this location to setup our office considering the high rents that we

have to pay if an outsider’s office space is rented. Since partner himself

owns the building there is no need to pay rent. As the company will be

started on a small scale, with only 12 people in the company (ten employees

and the two founders) we will not be requiring a larger space. The office set

up will be done in a convenient and appropriate manner, where the

employees of the company can work together. (Refer to annex5: Sketch and

interior of the office and warehouse)

The warehouse of the company where the equipment and supplies are

stored will be located in H. Casia, (Male’), ground floor. This is an existing

where house which has been recently vacated, and this is owned by the

second partner of the company Mr. Samih Mohamed. Similar to the office

space, the warehouse does not carry any rental cost as the partner owns it.

This is an added advantage for the company as rental costs are very high in

Male’.

1.1.2 Vision

“Providing customized relocation solutions through outstanding moving

services for our clients in a trustable and safe manner at a fair price”

1.1.3 Mission

“To provide fast and convenient services for our clients through qualified

teams of movers and packers by offering reliable, safe and secure moving

solutions”.

1.1.4 Core Values

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Quality

At Instant Movers, will be hiring with experienced and highly trained packers

and movers who have the capability to provide excellent services with the

use of modern high technology equipment.

Safe and secure service

Our top priority will be on providing safe and secure handling of the

household items and office equipment of our clients.

Team work

Building effective teams of different expertise human capital within the

company is vital for providing timely and reliable relocation services.

Reliability

Timely and consistent packing, moving and relocation service is critical for

achieving the trust of our clients.

Value pricing (Value for money)

Instant Mover will be employing qualified packers, and movers, drivers,

utilize quality equipment, packing materials and moving methods that best

meet the interest of clients. Once the required services are identified and

discussed with the clients, the price that best suits the moves of the

individuals will be fixed.

1.2 Strategic Objectives

1.2.1 Long term objectives

To sustain as the market leader providing movers service in the

Maldives.

Providing and sustaining high quality relocation services.

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Achieving and maintaining 100% safety records in delivering the

service.

Employing trained and motivated personnel

1.2.2 Short term objectives of the company

Achieving a brand awareness level of 10 percent of all consumers or

businesses in Male’ within the first 6 months of the business.

Establishing a customer base by attaining at least 100 customers

within the first year

Increasing sales by 2.5% per year.

Utilizing quality equipment to provide services.

Establishing good relationship with key suppliers.

Receiving at least 75 percent positive customer feedback regarding

the service yearly.

Recruiting only skilled and qualified personnel and conducting training

programs semi-annually.

1.3 Management Summary

1.3.1 Management Team

The management philosophy of Instant Movers is based on respect for each

of our fellow employees, respect for every customer, and individual

responsibility. We will hire only those who demonstrate the qualities

necessary for working in dynamic environment.

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The founder, Mr. Ibrahim Shareef has experience in the management field

and holds a master’s degree in Business Management. He is business

oriented person who is committed to his work. He has worked as a general

manager in the marketing department for 5 years and further, has worked

for 5 years in the management field. The key responsibilities of Mr. Shareef

include overlooking and managing the company's operations, developing

and implementing strategies to boost profit and making key decisions of the

business. He will also be handling the management and control of the

company’s financials.

The second founder Mr. Samih Mohamed has knowledge in the discipline of

marketing. Samih has a Master of Business Economics from the University of

Queensland, Australia and a BA (Hons) in Marketing Management from the

University of Northumbria, Newcastle in the UK. Mr. Samih Mohamed will be

handling the HR and Marketing activities of the company. He will be

responsible to undertake recruiting, hiring, and managing the moving teams.

He will be also be interacting with clients and employees.

Ms Fathimath Hashiya is a Management Accountant with a diploma in

Accounting and finance. She has 2 years’ experience in working as an

accountant in a private company. Ms. Hashiya will be handling sales and

accounting activities of Instant Movers. The main responsibilities that she

has to carry out are; managing sales transactions, cost containment (Moving

supplies - inventory control); coordinate the budget and full preparation of

the management account.

Mr. Suhail Adam has a degree in business administration from University of

Brunei. He has been working as a business administrator in a private

company for over 4 years. And Mr. Adam will be carrying out both the

administrative and operational activities of the company. The responsibilities

that he has include dealing with general and customer enquiries via

telephone and e-mail. He will also be responsible for the day-to day running

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of the office, daily administrative paperwork, and warehouse storage

management.

1.3.2 Hierarchy of Responsibilities

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Supervisor & Driver(Mr. Ahmed Hassan)Responsibilities:- planning and schedulingcustomer move- Pre-move confirmationand quality assurancecalls-Supervise the packer andmovers team

Supervisor & Driver(Mr. Ahmed Hassan)Responsibilities:- planning and schedulingcustomer move- Pre-move confirmationand quality assurancecalls-Supervise the packer andmovers team

3 - Expatriate WorkerResponsibilities:- Packing- Loading & Unloading- Unpacking- Arranging items

3 - Expatriate WorkerResponsibilities:- Packing- Loading & Unloading- Unpacking- Arranging items

FounderBusiness Manager(Mr.Ibrahim Shareef)Responsibilities:- Over looking and managing thecompany's operations- Develop strategies to boost profits- Implementation of strategies toboost growth- Making key decisions in thecompany

FounderHR/Marketing Manager(Mr.Samih Mohamed)Responsibilities:- Recruiting, hiring, and managingour moving teams- Interact with clients andemployees- Undertake marketing activities- Recruiting, hiring, and managingour moving teams

Admin and OperationsManager(Mr. Suhail Adam)Responsibilities:- To deal with general and customerenquiries via telephone and e-mail- Supervise the packers andmovers team 1- Responsible for the day-to dayrunning of the office- Daily administrative paperwork

Sales& Accounting Manager( Ms. Fathimath Hashiya)Responsibilities:- Managing sales transactions- Coordinate the budget- Full preparation of the managementaccounts

1.3.3 SWOT Analysis

This is a summary of the business's most important strengths, weaknesses,

opportunities and threats of Instant Movers.

Strengths of the Business Weaknesses of the Business

Excellent quality product

( Adds to reputation)

Good management skills.

(better operation of business)

Good ability to extract

information.

(Can control the business)

100% market share

First mover advantage

Highly experienced

management team

New Player

(Credibility problem may affect

initial sales)

Lack of systems

(The company needs to

develop systemized operational

& sales techniques or sacrifice

profits)

Lack of experienced packers

and movers

Opportunities in the Marketplace Threats in the Marketplace

Add-on products

(A potentially enormous market

for the Moving Company

Business to tap into)

Growing market segments.

(our Moving Company Business

should target these segments)

Expansion into Hulhumale’and

Villingili.

Entering into corporate moving.

Increasing supplier prices.

(Resulting in reduced

profitability)

Declining size of the segment.

(Need to focus on growing

segments to spread the

company's portfolio)

New entrants may enter the

market

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1.3.3 PESTEL Analysis

PESTEL stands for political, economic, social, technological, environmental,

and legal. These six elements scrutinize the general environment of a firm

for key trends and events.

It is believed that the moving industry is prone to political processes and

legal reforms. The Maldives Pension Act (Law No. 08/2009) entails

government workers to contribute to the Retirement Pension Plan in May

2010, followed by all private sector employers and employees no later than

May 2011. This has made it mandatory to pay 7% of the basic salary to each

employee’s account (Maldives Pension Administration Office (MPAO), 2011).

In addition to that, companies will be eligible to the business profit tax (BPT)

on 8th July 2011.

BPT is a tax charged, under the BPT Act (Act Number 5/2011), on the profits

of all businesses carried out in Maldives. The Act was published in the

Government Gazette on 18 January 2011 and as per the Act, it will

commence after 6 months from this date. Companies, partnerships,

individuals and all persons who are resident or carrying out business in

Maldives would be subject to tax under this Act. In addition, certain

payments made by any person to a non-resident would also be subject to tax

under this Act. The tax rates are:

Companies, Partnerships and other Persons - 15 percent

Profit from sources outside Maldives - 5 percent

Withholding tax - 10 percent (Maldives Inland Revenue Authority

(MIRA), 2011)

It is believed that the economy has its impact on all industries that said

Instant Mover will also be affected by the economy. To elaborate, Instant

Mover will be affected by fluctuations in interest rate, net disposable income,

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and inflation rate. For instance, an increase in interest rate will increase the

cost of borrowing for Instant Mover and thus resulting in a potential decrease

in the investments. When the net disposable income increases customers of

Instant Mover will be more optimistic towards purchasing their services.

Increase in inflation rate will increase the prices of Instant Mover’s services.

This will make it more expensive for the consumers to buy and thus some

customers may opt to postpone or withdraw completely from making the

purchase.

Socio-cultural forces influence the values, beliefs, lifestyle of a society.

Nowadays, there is a trend towards a higher percentage of women in the

workforce. A higher percentage of women in the workforce have increased

the talent pool from which Instant Mover can select its employees. There are

lots of students coming from rural areas to Male’ in order to go for higher

studies. Very often these students require moving from one house to

another.

Developments in technology lead to new products and services and improve

how they are produced and delivered to the end user (Dess & Lumpkin,

2003, p. 49). Developments in technology have led to new products such as

packing pellets, foam, masking tape, air bubble sheets: bubble wrap, water

proof sheets, moving boxes; wardrobe boxes, file & document box,heavy

duty platform truck 150kg, packing papers: corrugated cardboard roll, pulley,

wooden pallets & caret.

Changes in the climate will have little or no impact on the moving business.

The growing desire to protect the environment is having an impact on many

industries such as the travel and transportation industries. The general move

towards more environmentally friendly products and processes is affecting

demand patterns and creating business opportunities.

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2.0 Product/Service

The services that we would be offering includes packaging services, (packing

options are; full service packing, fragile packing and do it your self-packing),

and household moving services (this includes loading, transportation, loading

and unpacking services).(Refer to annex 3: Moving materials)

1. Packing Services

Packing Options

Full Service

Packing

Our packers will be packing all the household items, and belongings with

the best quality packaging materials and latest techniques. We will be

making use of name some of the materials that we will be using in order

to ensure that safety of the packages.

The proper packing of beds, sofas, tables, cupboard, electronic

appliances, and kitchen appliances is essential and this will be one of our

top priorities. There will be a supervisor who will be overlooking and

monitoring the whole process to make sure that packaging is handled

well. The tasks will be done according to a well-planned move procedure

chart so that nothing is left behind.

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Fragile

Packing

There are certain goods that needs special packaging due to it fragility,

these items need to be professionally packaged so that it is moved

without getting damaged. This option will provide the clients to pack the

items that are not fragile by themselves.

We will be only packing those items that they define as of high-value and

items such as dishes, glassware, artwork, fragile furniture, mirrors, etc

that needs special protection to avoid damages. Our packers will go to

great lengths to protect these items using fragile packaging materials

and the packages will be labeled as fragile items using.

Do It Yourself

Packing Our moves will be providing the clients the boxes and materials that they

need to pack the items in order to make the packaging easier for thise

who prefer to do it on their own.

2. Household Moving Services

3.

Basic Services

Loading Our team of packers and movers will give make certain that the

packages are loaded to our vehicle with special care as goods get

damages during the process. As mentioned earlier the move

procedure chart will outline the loading procedure too, whereby the

loading of items is done in a systematic manner.

The items will be labeled and categorized so that packages are

loaded for transportation in an efficient manner. There will be a

supervisor among the team to constantly monitor the operation. The

company will be using its own levers, pulley, and heavy duty

platforms to load the packages to the transporting vehicle. We will

also be assuring that the clients goods are delivered to their

respective destinations with no damages.

Transportation

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To provide more convenient and safe transport of the packed goods

we the company will be using our own vehicle. Initially we will be

having only two moving trucks and it will be driven by 2 professional

drivers who have experience in driving. The supervisors will ensure

that the drivers are handling the transportation with as much care as

possible to deliver packages in their present condition.

Unloading

When the goods arrive at its destination our team will be unloading

the items and place the packages in the rooms that the clients

designate no matter its ground floor or any other floor of the building.

While unloading the items the team will take extreme care to avoid

any damages or dents.

Unpacking

After the unloading of packages to the new house, our team will be

unpacking and helping in re-arranging of the household items in the

desired places of our clients.

3.0 Market Analysis

3.1 Market Segmentation

The company has focused on geographic segmentation whereby we have

identified our target segment as the capital city of Maldives Male’. A large

percentage of the population in Male’ is inhabitants from other islands across

the country. This as a result makes this segmentation an attractive

geographical segment to start such a business.

3.2.1Target Market

The target market of the Instant Movers is the Households living in Male’. We

have targeted this segment because Male’ is a crowded City and a large

percentage of the population is living in rented houses. This is mainly

because, most of them are from islands across the country, and as a result

there is a lot of household moving almost every day in Male’. Page | 16

The Census report 2006 of Maldives indicate that the total population of

Male’ in terms of both female and male is 103, 693 and the average annual

growth rate is 5.59. From the report we also have found that the total

households in Male’ was 14,107 and these households have been classified

as by type of place in rent and locality which shows that 5,914 of the

households are rented. These data are a little bit out of date since this has

been collected in 2006 and we believe that this data is changed since every

year a lot of people migrate to Male’ from the islands.

(Source: Maldives, Population and Housing Census 2006)

3.2.2 Market Trends

Maldives is experiencing increasing number of SME’s. However, land is a

very scarce resource especially to a country like Maldives. Consequently, the

transactions that involve renting and leasing of land have increased

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Population and average annual growth rate by Male’, 2000 & 2006 (Source: Maldives, Population and Housing Census 2006)

Total household of

Male’

Living

quarters

Owned by a

member

of this

household

Rented

places

14,107 12,645 6,398 5,914

significantly. If the contract cannot be renewed then another location is

sought. The transportation thereby required is where the opportunity lies.

The moving industry can grasp vast amount of proceeds via this prospect. In

addition to that considerable amount of islanders and tourists are coming to

Male’ in groups and there is no professional movers that can foster to their

needs. These trends indicate that the moving industry is upbeat.

In order to collect data regarding our target market we have done a small

research among the households living in Male’. The sample size was drawn

using probability sampling by dividing the households in Male into four

different wards using the stratified sampling method. Each of the cases

within the stratum was given a unique number and then a sample of 40

houses was taken using simple random method from each of the strata.

From each ward 10 houses were selected for sampling. This approach was

taken in order to make the sample more representative. However, the

response rate of the questionnaires was 38 out of 40. (Annex: 4. Market

analysis)

3.2.3 Competition

From the information collected we have identified several indirect

competitors but no direct competitors. These include taxi centers, which

provide transportation services. Even though they do not provide packing,

unpacking, loading and unloading services, this could be an indirect

competitor of the company. Currently the individuals themselves pack, and

move their packages using transportation from those local taxi centers.

Some of the individual movers pay certain amount for expatriate workers to

load and unload their packages from their houses to the new houses.

However, there is no competitor providing packing, loading, unloading or

moving service. Thus this creates a huge opportunity for Instant Movers to

establish its market and be successful in providing such a unique service.

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4.0 Strategy and Implementation

4.1Value proposition

Our value proposition is based on providing customers with customized

moving solution at a fair price. Each move will be planned and customized

according to the individual needs of our clients and our primary focus will be

on creating value for the money they spend.

4.2 Marketing Strategy

The target market strategy of the company is concentrated targeting

strategy. Through this we have selected a niche market (household market

in Male’) to target the company’s marketing efforts. Since we will be focusing

on a single segment it will allow us to concentrate on understanding the

needs, motives, satisfaction of the selected segment and develop and

maintain the a highly specialized marketing mix. In future we will however,

change the marketing strategy as we explore into new possibilities of

entering other markets.

4.3 Positioning Statement

“Providing customized, professional and quality moving solutions for

household movers”

The competitive advantage of this positioning statement is that Instant

Movers will be providing a customized and professional service to the

household movers. Further this statement will communicate the company’s

commitment to providing high quality services and providing solutions for

the problems that people face while moving.

4.4 Pricing Strategy

The pricing strategy that the company will be using to set the price is flexible

pricing strategy, whereby different customers’ different prices for the

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services provided. This will allow the company to provide customized

services and set a price depending on the individual packing, and moving

requirements of the clients. We will be determining the prices based on

quality and value of services we provide in packing and moving of our

client’s goods at trustable manner. Our first priority is to maintain the quality

at fair price and we preferred to provide services by understand our client’s

attributes and behaviors regarding packing and moving at congested area of

Male’.

4.4.1 Pricing of Instant Movers Services

Type of ServiceNo. of labors

Timescale/rounds

Normal Price per

order(MRF)

Extra Price per

hour (MRF)

Full Service Packing 3 packers Up to 5 hours 750 50Fragile Packing 3 packers Up to 3 hours 450 60Do it yourself 250Loading 3 packers Up to 2 hours 300 25Transportation 1 driver Up to 2 rounds 100 30Unloading 3 packers Up to 2 hours 300 25Unpacking 3 packers Up to 4 hours 650 40Total 2800 230

Table 4.1: Pricing criteria for Instant Movers

Type of services = The type of services has been defined in terms of

the number of labors required, the time scale or rounds required for

each service, the price of in

Number of labors= amount of labors required for providing each

service

Timescale/ rounds= number of time spent in providing each service

and the number of rounds required for transportation.

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Estimated Extra hours= this has been determined by considering

that in some situations we might have to spend extra time giving

services.

Normal price per order (MRF) = the normal price that will be

charged for each service. It is determined by hourly rate whereby we

charge MRF150 per hour and the transportation price has been

determined MRF 50 per round.

Extra price per hour= the additional charges that we will be

charging for every extra hour that we spend on a service.

4.5 Promotion Strategy

Instant Movers will be using pull strategy since the company intends to

convey the marketing messages directly to the targeted end-user customers.

The aim is to generate increased levels of awareness, encourage

involvement and provoke motivation within the targeted market. The

company will be able to stimulate action by the consumers through such

motivation.

Promotional Objectives Duration

Develop a corporate brochure and

flyers.

October 2011

Opening sales promotion November 2011

Develop personalized business

cards.

March 2012

Create Basic Website as a tool to

promote services

May 2012

Advertise in local publications (local

newspapers, magazine, billboard)

January 2013

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Communication Mix

The communication mix of Instant Movers comprises of 2 tools that is

advertising and sales promotion.

1. Advertising

During the introduction stage of the life-cycle of the product, advertising will

be used to explain the product and the benefit associated by the product.

The emphasis will be to provide enough information to allow potential buyers

to see how Instant Movers services might relate to them. It will encourage

customers to stimulate enough interest to encourage them for carrying out

further investigation and use the company’s moving services.

In order to advertising the company will be using brochures and flyers that

will be distributed to door-to-door. This will help the company to provide the

product knowledge and create a brand image among the target group of

customers. This will be done within the first 15 days of the business being

started.

2. Sales Promotion

Instant Movers will provide an opening sales promotion whereby we will be

offering special discounts packages for the first 10 customers. Through this

package we will be offering 10%- 20% discount.

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5.0 Financial Plan

The foremost element in our financial plan will be initiating, maintaining, and

improving the factors that create, stabilize, and increase our cash flow.

Creating visibility so as to create customer flow.

Maintaining a dependable, employee force with the knowledge of

packing and moving so as to provide better quality service.

Maintaining viable stock levels.

Key Assumptions

The key underlying assumptions of our financial plan shown in the following

general assumptions table are:

We assume access to equity capital and financing to support our

financial plan.

We assume our financial progress based on estimated sales against

possible expenses.

We assume there will not be an economic crash that would greatly

hinder our target market's access to our service.

5.1 Startup Expenses and Capitalization

Instant Movers will have many startup expenses prior to starting the

operations of the company. We have estimated these expenses since it is

necessary to estimate these expenses as accurately as possible in order to

plan how to raise capital. The total budget of the company is MRF 260,000,

which will be raised by 60% personal finance (by both founders 30% each)

and the remaining 40% will be raised through debt finance. This means that

each owner contributes MRF 78000 and the remaining MRF 104,000 will be

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raised through debt

finance. (Refer annex:

1.0: Moving Supplies

for 3 months).

Table 5.1 shows the startup

expenses for first three

months

Table 5.1:The startup expenses for first three months

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Start-up Expenses

Office overheads

Costs(M

RF)

Total

Costs(MRF)

Salary and wages 36,878

Food and

accommodation 8,000

Electricity cost 2,000

Stationeries 250

Office supplies 14,000

Internet 690

Working Kits 6300

Fuel cost 3000

Promotion 2500

Total office

overheads 73,618

Total moving

supplies 171,907.94

Import duties

5

,897

Registration Fee 2,000

Total expenses 253,423

5.2 Sales forecast

The sales forecast has been prepared by estimating the number of orders we

will be receiving per month according to the different services that we

provide to our clients. We have made an estimation of the normal hour sales

by multiplying the number of orders by price per order and we have also

added the price of expected extra hours that our staffs will spend on

providing the services (multiplying the number of estimated extra hours by

price per extra hours). (Refer to table 5.2).

Type of ServiceNo. of orders

Normal Price per

order(MRF)

Normal price per

order*no. of orders

Estimated Extra hours

Extra Price per

hour (MRF)

Estimated Extra

hours*Extra Price per

hour (MRF)Full Service Packing

500 750 375000 5 50 250

Fragile Packing 250 450 112500 7 60 420Do it yourself 150 250 37500 0Loading 500 300 150000 15 25 375Transportation 500 100 50000 15 30 450Unloading 500 300 150000 15 25 375Unpacking 500 650 325000 15 40 600Total 1200000 2470

Table 5.2: Total estimated number of orders and extra hours for one year

Type of services = The type of services has been defined in terms of

the number of labors required, the time scale or rounds required for

each service, the price of in

Number of labors= amount of labors required for providing each

service

Number of order= the number of order has been estimated by

making a forecast of the number of orders that Instant Movers would

be receiving in the first 3 months of its operation. In doing so we have

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estimated that we will be receiving at least 3 customers per week and

by the end of 1 month we will be receiving at least 15 orders by

clients.

Timescale/ rounds= number of time spent in providing each service

and the number of rounds required for transportation.

Estimated Extra hours= this has been determined by considering

that in some situations we might have to spend extra time giving

services.

Normal price per order (MRF) = the normal price that will be

charged for each service. It is determined by hourly rate whereby we

charge MRF150 per hour and the transportation price has been

determined MRF 50 per round.

Extra price per hour= the additional charges that we will be

charging for every extra hour that we spend on a service.

5.2.1 Sales forecast for five years

The sales for the first year are calculated by adding the total normal price

per order and total estimated extra hours per hour (MRF), (refer to annex

2:Total number of sales 12 months).We have made an estimation of the

sales forecast for Instant Movers for 5 years. This estimation has been done

by assuming that each year the sales would increase by 2.5 percent, (Table

5.2.1 and figure 5.2.1)

Sales Forecast for 5 years Year 1 Year 2 Year 3 Year 4 Year 5

Sales

1,202,470.00

1,232,531.75

1,263,345.04

1,294,928.67

1,327,301.89

Table 5.2.1: Sales forecasted for 5 years

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Year 1 Year 2 Year 3 Year 4 Year 511400001160000118000012000001220000124000012600001280000130000013200001340000

Sales forecast for 5 years

Series 1

Figure 5.2.1: Sales Forecast for 5 years

5.3 Projected income statement

The following projected income statement for Instant Movers is prepared for

the year ended 2012.

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Details MRF MRF

Total sales 1,202,470.00

 

Cost of goods sold 119,079.40

 

Less: Gross profit   1,083,390.60

Less: Expenses    

Salary and wages 479,414.00

 

Food and accommodation 104,000.00

 

Electricity cost 20,000.00

 

Stationeries 3,250.00

 

Office supplies 14,000.00

 

Internet 8,970.00

 

Working Kits 12,600.00

 

Fuel cost 39,000.00

 

Promotion 8,000.00

 

Import duties 29,485.00

 

Registration Fee 2,000.00

 

    (720,719.00)

Net Profit

    362,671.60

5.4 Projected Balance Sheet

The balance sheet below shows the financial position of Instant Movers for

the year ended 2012. The company’s financial year begins on 1st November

2011 and end on 1st November 2012.

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Projected Balance Sheet for the year ended 2012

Assets MRF MRF

Fixed Assets

Delivery Vehicle 160000 160000

Current Assets

Inventory 33776.34

Cash at bank 211292.3  

405068.64

Liabilities

Bank Loans 104000

Owner's equity 156000

Retained Earnings 145068.64  

405,068.64

List of Reference

Population and housing census of Maldives 2006, (2007), Ministry of Planning

and National

Development, retrieved on 24th April 2011,

fromhttp://www.planning.gov.mv/ publications/Population%20and

%20Housing%20Census%202006/home.htm

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Annex

Annex: 1. Supplies required for three months

Supplies for 3 months

Moving Materials Price (MRF) Quantity Total price (MRF)

Vehicle160,000.0

0 1 160,000.00

2 cubic foot box 27 20 540.00

5 cubic foot box 62.6 20 1,252.00

48" wardrobe 285.82 5 1,429.10

China barrel 125.696 20 2,513.92

Single Mattress Bag 67.1 25 1,677.50

Double Mattress Bag 82.52 15 1,237.80

Bubble Wrap 1/2" x 48" 10.191 20 203.82

Bubble Wrap 3/16" x 48" 7.565 20 151.30

66 m Tan Tape 28.55 50 1,427.50

25 lbs Wrapping Paper 295 5 1,475.00

200 171,907.94

Annex: 2. Total number of sales as for 12 months

Total Normal price per order*no. of orders

1,200,000.00

Total Estimated Extra hours*Extra Price per hour (MRF)

2,470.00

Total Sales for one year 1,202,470.00

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Annex: 3. Moving Materials

2 Cubic foot box

Use for any items, but especially for heavier items.This is a versatile box for toys, pots & pans, small appliances, electronics, computer peripherals, clothing, shoes, etc.

5 Cubic foot box

This box is for large, bulky items such as pillows, comforters, coats, towels, sofa cushions

48" Wardrobe

This is used to pack up closets. The clothes are put in and hanged on the rack for moving.

China BarrelUsed for packing dishes, china, stemware, household breakables.  Provides more strength & protection than any other box. Before packing each item in this box, the item will be wrapped in unprinted packing paper.

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Single Mattress Bag and Double Mattress Bag

One for the mattress and another for the box spring will be required to protect the mattress while moving.

Bubble Wrap 1/2" x 48" Bubble Wrap 3/16" x 48" 66 m Tan Tape 25 lbs Wrapping Paper

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-Annex: 4. Market analysis

4.1. Survey Questionnaires

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Female Male

Married Single Divorced

1 to 4 5 to 8 8 and above

Once a year Twice a year After two to three yearsOthers (specify) _____________

Yes No

3. Too busy to do the packing4. Having to pack everything on your own

5. Other(specify)…………………………………………………….

Yes No

1.Very often 3.Rarely2.Often 4.Not at all

On your own By hiring a vehicle

1 round 2-3 rounds

Mrf 60 Mrf 60-95 Mrf 100 and above

3. Secure and safety delivery of the packages4. Other(specify)…………………………………………………….

Q.9 What are the main difficulties that you face while relocating your house?

1. Packaging the household items2. Loading and unloading packages from the vehicle

Thank you for taking your time to answer our questionnier. We are students from Faculty of Managementand Computing. In order to prepare our business plan on Movers service we require to analyse the market togather information regarding the current market conditions. The result of the survey will be presented in ourplan. The answers are treated anonymously.

Q.8. What is the transport cost to move packages to the new house?

Please tick the box that you most agree.

Q.1. How often do you move from one house to another?

Q.2 Do you face difficulty in packing the furnitures and household items when moving?

Q.3 What are the difficulties that you face in packing the items?

Q.7. How many rounds does it takes to move all your packages?

Gender:

Marital Status

No of people living in the house

1. Unavailibilty of packaging materials2. Packing fragile items such as glass

Q.4 Do you load and unload the packages yourself from the house to the vehicle?

Q.5 While loading and unloading from the vehicle how often does your items get damages?

Q.6 Do you transport the packages using your own vehicle or by hiring a vehicle?

4.2. Findings

Gender

Male; 17

Female; 21

From the total 38 respondents, 17 are male and 21 are female.

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On your own By hiring someone

1. Friends 3. Advertisments2. Relatives 4. Others(specify)…………………………………………………..

Specify……………………………………………………………………………………………………………………………………………………………………………

Yes No

Yes No

Q.10 Do you unpack and arrange the household items by yourself or hire someone?

Q.11 On a scale of 1-5, where 1 represents extremely satisfied and 5 represents extremely dissatisfied. How much would you rate the your satisfation level on the method that you use for relocation of your house?

Q.12 If you hire people to do any of the relocation works (packing, loading,unloading, unpacking and arranging items) how do you find people to do these type of works?

1 2 3 4 5

Satisfied Neutral Dissatisfied

Q.14 will you be willing to handover the relocation service to a proffessional movers if such a business is started in Male'?

Q.15 In your opinion is there a need for such a service in Male?

Q.13 What is the overall cost of moving to a new house?

Marital status

Marital status

MarriedSingleDivorced

How often people move from one place to another

The survey finding shows that most of the participants in the survey tend to move from one place

to another within two or three years. Whereas, only 2 people indicated that they moved twice a

year. Furthermore, 5 people indicated that they move from one place to another once a year,

while the rest 4 of them mentioned it as others, which might be preferred as more than three

years.

Number of people who face difficulties during packing the furniture and household items

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Once a year

Twice a year

Two to three years

Others

5 people

2 people

20 people

4 people

It shows that 31 people agreed having faced

difficulties while moving from one place to another. Whereas 7 people stated that they don’t face

many difficulties while moving. From this finding it can obtained that there is a huge need for

this kind of business in Male`.

Unavailibility of packing materials

Packing fragile items such as glass

Too busy to do the packing

Have to pack everthing on your own

Others

Respondent error

0 2 4 6 8 10 12 14

Difficulties faced during packing the items

Number of people

The major difficulty that people face while moving is lack of time to do the packing while the

second was unavailability of packing materials and among the participants some also have

mentioned that it was difficult for them to pack fragile materials on their own. Thus, our service

would be a perfect solution for their problem.

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Yes 31, people

No7, people

Yes81%

No19%

Number of people who Load and unload the packages by themselves

Among the participants in the survey 19% of people do not load and unload themselves however

81% people said they do themselves. Consequently, this directs to the need for such a service and

our packers and movers will be providing the loading and unloading of the clients packages with

utmost cares and ease.

Very often Often Rarely Not at all02468

1012141618

810

16

4

How often things get damaged

While 16 people said that their packages or materials get damaged rarely while moving to a new

house, 10 people from the survey agreed that their packages get damaged often and only 4

people mentioned that the items they move does not get damage at all while moving.

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Number of rounds it takes to move all packages

1 round 2-3 rounds more than 3 rounds

05

10152025

1

1621

This diagram indicates the number of rounds that each of the participants took while they moved

to a new house. Among them 21 people said that it takes more than three rounds and 16 people

agreed that they take two rounds to move their items. Instant Movers will be using its own

delivery van which will conveniently transport the packages to the destination our clients want.

Number of people who transport by own vehicle

Number of people who transport by hiring a vehicle

0 5 10152025303540

2

36

Transport mode used to move the items

This diagram indicates that most of the people hire for transporting their packages since 36

people mentioned that they move items by hiring vehicles while two people agreed that they

move goods by using they owing vehicles. Since the majority of people moved their packages by

hiring the vehicles we assume that there will be demand for our transportation services.

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Average transport cost to move packages to new house

Mrf 60 Mrf 60-95 Mrf 100 and above others

0

5

10

15

20

25

26

24

6

This is an illustration of the average amount that people pay for transporting their packages.

From this we can interpret that in general people pay around Mrf 100 and above for such

services.

Factors that affect the cost while moving the items

1 2 3 4 50

2

4

6

8

10

12

7 76 6

9

5

11

56

8

11

6

2

7 77

0

11

89

4

1011

7

3

Fragility

No.of Packages

Floor

No.of rounds

Weight of the Packages

From the survey we were able to identify the key factors that affect households moving costs.

The diagram presents the five main factors that people weight most on as adding to their costs of

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moving. The number of floors, rounds and packages were the biggest factors that have been rated

by the participants as adding to their cost.

Packing the household items

Loading and unloading packages from vehicle

Secure and saftey delivery of the packages

Respondent error

0 2 4 6 8 10 12 14

Main difficulties faced while moving the items

number of people

The main difficulties that people face while moving are loading and unloading from vehicle,

secure and safety delivery of the packages and packing of household items as presented by the

diagram above.

Satisfactory level of the method they use for moving

Satisfied

Neutral

Dissatisfied

0 2 4 6 8 10 12 14 16 18

8

18

12

Among the participants, 18 people have rated their satisfaction level of the current method they use as neutral, and 12 have agreed that they are dissatisfied with the current way of moving to a

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new house. The main reason most of them were neutral in this indicator might have been due to the fact that people are unaware of such a service and they don’t have any other options but to do the moving all by themselves. Thus, Instant Movers needs to make it sure that people are made aware of the service and the difference it would make to hire our packers and movers to do all their moving related work.

How are people found to do these types of works

FriendsReleatives

Advertising Others

02468

1012141618

Among the participants some have mentioned that they do hire expatriates to do loading and unloading of their packages. The main source that they use to hire such people was through their friends and relatives.

Details No. of peopleThere is a need for professional movers 30There is no need for professional movers 4No. of people who are willing to use a professional mover 33No. of people who are not willing to use a professional mover 9

The table above indicates that among the people that we have included in our survey more than

33 people are willing to use a professional movers service and that 30 of them agrees that there

is a need for such a service in Male’. We will take this as a positive indicator as this means there

will be a demand that we can fulfill by providing professional household moving services in

Male’.

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Annex5: Sketch and interior of the office and warehouse

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