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Pre-Feasibility Study
Prime Minister’s Small Business Loan
Scheme
Day Care Center
Small and Medium Enterprises Development Authority
Ministry of Industries & Production
Government of Pakistan
www.smeda.org.pk
HEAD OFFICE
4th Floor, Building No. 3, Aiwan-e-Iqbal Complex, Egerton Road,
Lahore
Tel: (92 42) 111 111 456, Fax: (92 42) 36304926-7
REGIONAL OFFICEPUNJAB
REGIONAL OFFICESINDH
REGIONAL OFFICEKPK
REGIONAL OFFICEBALOCHISTAN
3rd Floor, Building No. 3,
Aiwan-e-Iqbal Complex,
Egerton Road Lahore,
Tel: (042) 111-111-456Fax: (042) 36304926-7
5TH Floor, Bahria
Complex II, M.T. Khan Road,
Karachi.Tel: (021) 111-111-456
Fax: (021) 5610572
Ground Floor
State Life Building
The Mall, Peshawar.Tel: (091) 9213046-47
Fax: (091) 286908
Bungalow No. 15-A
Chaman Housing Scheme
Airport Road, Quetta.Tel: (081) 831623, 831702
Fax: (081) 831922
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Table of Contents
1 Disclaimer ............................................................................................................................... 1 2 Purpose of the Document ........................................................................................................ 2 3 Introduction to SMEDA .......................................................................................................... 2 4 Introduction to Scheme ........................................................................................................... 2 5 Executive Summary ................................................................................................................ 3 6 Brief Description of Project & Product .................................................................................. 3 7 Critical Factors in Decision Making ....................................................................................... 4 8 Installed & Operational Capacities ......................................................................................... 4 9 Geographical Potential for Investment ................................................................................... 4 10 Potential Target Markets & Cities .......................................................................................... 5 11 Project Cost Summary ............................................................................................................ 5
11.1 Project Economics .......................................................................................................... 5 11.2 Project Financing ............................................................................................................ 6 11.3 Project Cost ..................................................................................................................... 6 11.4 Space Requirement ......................................................................................................... 6 11.5 Equipment Requirement ................................................................................................. 7 11.6 Furniture & Fixtures Requirement .................................................................................. 7 11.7 Human Resource Requirement ....................................................................................... 8 11.8 Revenue Generation ........................................................................................................ 8 11.9 Other Costs...................................................................................................................... 9
12 Contacts – Suppliers, Experts / Consultants, Dev. Institutions............................................... 9 13 Annexure ............................................................................................................................... 10
13.1 Income Statement.......................................................................................................... 10 13.2 Balance Sheet ................................................................................................................ 11 13.3 Statement of Cash Flow ................................................................................................ 12 13.4 Useful Project Management Tips.................................................................................. 13 13.5 Useful Links .................................................................................................................. 14
14 Key Assumptions .................................................................................................................. 15
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11 DDIISSCCLL A AIIMMEERR
This information memorandum is to introduce the subject matter and provide a general
idea and information on the said matter. Although, the material included in this
document is based on data/information gathered from various reliable sources;
however, it is based upon certain assumptions which may differ from case to case. The
information has been provided on as is where is basis without any warranties or
assertions as to the correctness or soundness thereof. Although, due care and diligence
has been taken to compile this document, the contained information may vary due to
any change in any of the concerned factors, and the actual results may differ
substantially from the presented information. SMEDA, its employees or agents do not
assume any liability for any financial or other loss resulting from this memorandum in
consequence of undertaking this activity. The contained information does not preclude
any further professional advice. The prospective user of this memorandum is
encouraged to carry out additional diligence and gather any information which isnecessary for making an informed decision, including taking professional advice from a
qualified consultant/technical expert before taking any decision to act upon the
information.
For more information on services offered by SMEDA, please contact our website:
www.smeda.org.pk
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22 PPUURRPPOOSSEE OOFF TTHHEE DDOOCCUUMMEENNTT
The objective of the pre-feasibility study is primarily to facilitate potential entrepreneurs
in project identification for investment. The project pre-feasibility may form the basis of
an important investment decision and in order to serve this objective, the
document/study covers various aspects of project concept development, start-up, and
production, marketing, finance and business management.
The purpose of this document is to facilitate potential investors in Day Care Center by
providing them with a general understanding of the business with the intention of
supporting potential investors in crucial investment decisions.
The need to come up with pre-feasibility reports for undocumented or minimally
documented sectors attains greater imminence as the research that precedes such
reports reveal certain thumb rules; best practices developed by existing enterprises by
trial and error, and certain industrial norms that become a guiding source regarding
various aspects of business set-up and it’s successful management.
Apart from carefully studying the whole document one must consider critical aspects
provided later on, which form basis of any Investment Decision.
33 IINNTTRROODDUUCCTTIIOONN TTOO SSMMEEDD A A
The Small and Medium Enterprises Development Authority (SMEDA) was established in
October 1998 with an objective to provide fresh impetus to the economy through
development of Small and Medium Enterprises (SMEs).
With a mission "to assist in employment generation and value addition to the nationalincome, through development of the SME sector, by helping increase the number, scale
and competitiveness of SMEs" , SMEDA has carried out ‘sectoral research’ to identify
policy, access to finance, business development services, strategic initiatives and
institutional collaboration and networking initiatives.
Preparation and dissemination of prefeasibility studies in key areas of investment has
been a successful hallmark of SME facilitation by SMEDA.
Concurrent to the prefeasibility studies, a broad spectrum of business development
services is also offered to the SMEs by SMEDA. These services include identification of
experts and consultants and delivery of need based capacity building programs of different types in addition to business guidance through help desk services.
44 IINNTTRROODDUUCCTTIIOONN TTOO SSCCHHEEMMEE
Prime Minister’s ‘Small Business Loans Scheme’, for young entrepreneurs, with an
allocated budget of Rs. 5.0 Billion for the year 2013-14, is designed to provide
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subsidised financing at 8% mark-up per annum for one hundred thousand (100,000)
beneficiaries, through designated financial institutions, initially through National Bank of
Pakistan (NBP) and First Women Bank Ltd. (FWBL).
Small business loans with tenure upto 7 years, and a debt : equity of 90 : 10 will be
disbursed to SME beneficiaries across Pakistan, covering; Punjab, Sindh, Khyber Pakhtunkhwah, Balochistan, Gilgit Baltistan, Azad Jammu & Kashmir and Federally
Administered Tribal Areas (FATA).
55 EEXXEECCUUTTIIVVEE SSUUMMMM A ARRYY
Day Care Center is proposed to be located in major cities as Islamabad, Lahore,
Karachi and Quetta etc. Life, today, is characterized by independent family systems,
need for improved living standards, quality education for children, etc resulting in
increased pressure on working women to efficiently manage both their professions and
domestic responsibilities. The demand for day care centers is on the rise, specifically byworking mothers, and the service is deemed as a profitable social entrepreneurship
opportunity.
The project features a facility and its ancillary services for children aged 6 months to 5
years in a hygienic and activity based educational environment through trained and
educated staff.
The project can be used for a maximum of 40 enrolments, however, keeping in view the
rationale and demand; calculations have been made on the assumption of 24
enrolments for the first year of operations.
Total cost estimate of the project is Rs. 1.42 Million with a fixed investment of Rs. 0.84
Million and a working capital of Rs. 0.58 Million.
Given the cost assumptions IRR and payback are 62% and 1.92 years, respectively.
The most critical considerations or factors for success of the project are:
• Most Significant Consideration: Commercial area, accessible and secure area
• Equally Important Factor: Admission Time
66 BBRRIIEEFF DDEESSCCRRIIPPTTIIOONN OOFF PPRROOJJEECCTT && PPRROODDUUCCTT
• Techniques: This proposed unit would be established with modern learning
techniques and extracurricular activities.
• Location: The unit would be located in metropolitan cities of Pakistan i.e. Lahore,
Islamabad, Quetta, Peshawar, Karachi and smaller cities.
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• Product: The Day Care Centre will offer a hygienic and efficiently managed care
facility for children.
• Target Market: Working mothers; doctors, teachers, bankers, etc.
•
Employment Generation: Direct employment to 6 people. Financial analysis showsthe unit shall be profitable from the very first year of operation.
77 CCRRIITTIICC A ALL FF A ACCTTOORRSS IINN DDEECCIISSIIOONN MM A AKKIINNGG
• Center’s environment should ensure security and should be free from any apparent
hazard.
• The center should be preferably located in a commercial area.
• Frequent care provider – parent interactions should also be a regular feature of the
center’s day care system.
• The center should be started at least one week prior to the ending of winter
vacations so that proper promotion and management of admissions are conducted.
• A well-trained/experienced care provider will ensure value added service delivery.
• It is recommended that the proposed project should be established in a rented
building to reduce the project cost.
88 IINNSSTT A ALLLLEEDD && OOPPEERR A ATTIIOONN A ALL CC A APP A ACCIITTIIEESS
It is proposed that infants age of more than 6 months and up to 5 years age children
would be enrolled in the center. Initially day care center growth would be 60% in the firstyear, where 24 kids would be enrolled. However, this capacity may not be achieved in
the initial years of operations. 99 GGEEOOGGRR A APPHHIICC A ALL PPOOTTEENNTTII A ALL FFOORR IINNVVEESSTTMMEENNTT
The fast paced life of the cities is significantly influencing the life style of its inhabitants.
Economic pressures are compelling both parents to work towards achieving and
sustaining quality life standards. This has further added to complexity and competition
of any Metropolitan city. As a result of these social changes, the trend of sending
children to Day Care Centers at a much earlier age is gaining rapid grounds. Major
cities of Pakistan have great potential for this project, e.g, Karachi, Islamabad, Lahore,
Peshawar and Quetta.
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1100 PPOOTTEENNTTII A ALL TT A ARRGGEETT MM A ARRKKEETTSS && CCIITTIIEESS
The Day Care Center has targeted the working women and the business community
having infants of age more than 6 months to children of age up to 5 years. The target
population of the working women consists of the women with pre-school going children.
The business community also has positive response since they too are very much
involved in their daily routines and therefore can be targeted as potential customers.
Keeping in view economic and social factors, it is recommended that the proposed
project may be established in major cities such as Islamabad, Lahore, Quetta, Karachi
and Peshawar etc. However the project may be open in other cities and towns after
careful market analysis.
1111 PPRROOJJEECCTT CCOOSSTT SSUUMMMM A ARRYY
A detailed financial model has been developed to analyze the commercial viability of
Day Care Center under the Prime Minister’s Small Business Loan Scheme. Variouscost and revenue related assumptions along with results of the analysis are outlined in
this section.
The projected Income Statement, Cash Flow Statement and Balance Sheet are
attached as appendix.
1111..11 PPr r oo j jeecctt EEccoonnoommiiccss
The proposed intervention has the capacity of 40 enrolments however a target of 24
enrolments is assumed in Year 1 of Day Care Center. The following table shows
internal rates of return and payback period.
TTaabbllee 11:: PPr r oo j jeecctt EEccoonnoommiiccss
Description Details
Internal Rate of Return (IRR) 62%
Payback Period (yrs) 1.92
Net Present Value (NPV) 4,224,856
Returns on the scheme and its profitability are highly dependent on the efficiency of
location, staff, hygienic environment, safety, curricular & extracurricular activities. In
case Day Care Center is not very efficient, it will not be able to cover the potential and
recover payments.
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1111..22 PPr r oo j jeecctt FFiinnaanncciinngg
Following table provides details of the equity required and variables related to bank
loan;
Table 2: Project FinancingDescription Details
Total Equity (10%) Rs.142,028
Bank Loan (90%) Rs.1,278,252
Markup to the Borrower 8%
Tenure of the Loan (Years) 7
1111..33 PPr r oo j jeecctt CCoosstt
Following requirements have been identified for operations of the proposed business.
Table 3: Capital Investment for the Project Capital Investment Amount (Rs.)
Building/Infrastructure -
Office Equipment 5,000
Furniture & Fixtures 483,000
Machinery & Equipment 274,000
Pre Operating Cost 78,280
Total Capital Costs 840,280
Initial Working Capital 580,000
Total Project Cost 1,420,280
1111..44 SSppaaccee RReeqquuiir r eemmeenntt
It is recommended that the proposed project should be established in a rented building,
preferably a one kanal (4,500 sq.ft.) house with two bedrooms and attached bath, one
drawing and dining rooms each, one kitchen and a reasonable front / back yard to
reduce project cost. In case a purpose built building is purchased, project cost will
increase. The rent for the building is assumed Rs. 40,000 per month.
Table 4: Space Requirement
Description Sq .ft Required
Building Covered Area 2,000
Play Area / Grounds 2,500
Total Bui lding Area 4,500
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1111..55 EEqquuiippmmeenntt RReeqquuii r r eemmeenntt
The basic requirements for a daycare center includes activity based equipments for
outdoor activities (slides, merry-go-round, swings, etc.), equipments for indoor activities
(soft boards, white boards, books, etc.), kitchen equipment (microwave, refrigerator)
and entertainment and sleeping fixtures and equipment (T.V., DVD player), all of whichare readily available in the local market. Details of the equipment are given as below, for
a sum total of Rs. 274,000 only:
Table 5: Equipment DetailEquipment Details Qty Cost/Uni
Total Cost
Slide (Iron) 1 15,000 15,000
Merry-Go-Round 1 20,000 20,000Swings (Outdoor) (3 Seater) 2 30,000 60,000
Monkey Bar 2 10,000 20,000
Baby Eating Seat 2 8,000 16,000
Baby Rocker / Swing Chair 2 4,000 8,000
Sleeping Cot 3 10,000 30,000
Beds (Single + Mattress) 5 10,000 50,000
White Board 5 1,500 7,500
Soft Boards 5 1,500 7,500
Cooking Range / Burner Stove 1 3,000 3,000
Microwave 1 7,000 7,000
Refrigerator 1 25,000 25,000
Kitchen Utensils 1 5,000 5,000
Total Machinery & Equipment 274,000
1111..66 FFuur r nnii ttuur r ee && FFiixxttuur r eess RReeqquuiir r eemmeenntt
Furniture & fixtures requirement for the project is detailed as under:
Table 6: Furniture & Fixture DetailDescription Qty Cost/Uni
Total Cost
Office Chairs 2 5,000 10,000
Office Table 1 10,000 60,000
Sofa Cum Bed 2 10,000 20,000
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Seating Chairs (Children) 24 2,000 48,000
Book Rack (Library) 2 5,000 10,000
Eating Table 2 15,000 30,000
Electric Wiring 1 5,000 5,000
Cupboards & Book Shelves 10 6,500 65,000
Carpet 2,000 30 60,000
Television 1 40,000 100,000
Air Conditions (1.5 Window) 4 55,000 220,000
Total Furniture & Fixtures 483,000
1111..77 HHuummaann RReessoouur r ccee RReeqquuiir r eemmeenntt
The manpower required for operating the Day Care Center is as follows:
Table 7: Human Resource Detail
Description Qty Salary Total Monthly Salary
Owner / Manager 1 20,000 20,000
Nannies 4 10,000 40,000
Guard 1 10,000 10,000
Total 6 75,000
It is highly recommended that the nannies should be qualified females of age range
from 18 to 30 to ensure the parents about their child’s proper care and safety. The
nannies should be at least matriculates and should go from a proper child care training
program before having the job responsibilities.
1111..88 RReevveennuuee GGeenneer r aatt iioonn
It is proposed that infants of more than 6 months of age to children of 5 years of age be
enrolled in the center. The project would have a total capacity of 40 students. However,
keeping in view the market analysis, it is assumed the project capacity would be around
24 enrolments in year 1 of its operation.
Table 8: Revenue DetailFees / month (Rs./Unit) First Year
EnrolmentMonthly
Revenue (Rs)
9,000 24 216,000
Annual Revenue 2,592,000
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1111..99 OOtthheer r CCoossttss
The primary overhead cost of the project would be utilities as electricity, gas & water
and cost of fuel must be kept in mind for generator expenses.
Electricity Price Growth Rate 10%
Gas Price Growth Rate 10%
Water Price Growth Rate 10%
Salary Growth Rate 10%
Rent Growth Rate 10%
Student Fee Growth Rate 10%
Contacts – Suppliers, Experts / Consultants, Dev. Institutions
Below is the list of major suppliers of Children Toys for Day Care Center:
1. Babyland Toys1st Floor, Sheikh Innayat-Ullah Building,Liberty Market, Gulberg 3, Lahore PakistanTel: 042-35757468, Mob: 0336-4050607http://www.babyland.com.pk/
2. Kaymu ToysArfa Software Technology Park 346-B
Ferozpur Road Lahore, Pakistan
http://www.kaymu.pk
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1122 A ANNNNEEXXUURREE
1122..11 IInnccoommee SSttaatteemmeenntt
Statement Summaries SM
Income Statement
Rs.
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9
Revenue 2,592,000 2,948,400 3,333,960 3,750,705 4,200,790 4,686,506 5,210,292 5,470,806 5,744,347
Cost of goods sold - - - - - - - - -
Gross Profit 2,592,000 2,948,400 3,333,960 3,750,705 4,200,790 4,686,506 5,210,292 5,470,806 5,744,347
General administration & selling expenses
Administration expense 840,000 924,000 1,016,400 1,118,040 1,229,844 1,352,828 1,488,111 1,636,922 1,800,615
Rental expense 480,000 528,000 580,800 638,880 702,768 773,045 850,349 935,384 1,028,923
Utilities expense 480,000 528,000 580,800 638,880 702,768 773,045 850,349 935,384 1,028,923
Travelling & Comm. expense (phone, fax, etc.) - - - - - - - - -
Office vehicles running expense - - - - - - - - -
Office expenses (stationary, etc.) - - - - - - - - -
Promotional expense 51,840 58,968 66,679 75,014 84,016 93,730 104,206 109,416 114,887
Insurance expense - - - - - - - - -
Professional fees (legal, audit, etc.) - - - - - - - - -
Depreciation expense 76,200 76,200 76,200 76,200 76,200 76,200 76,200 76,200 76,200
Amortization expense 15,656 15,656 15,656 15,656 15,656 - - - -
Property tax expense - - - - - - - - -
Miscellaneous expense 60,000 66,000 72,600 79,860 87,846 96,631 106,294 116,923 128,615
Subtotal 2,003,696 2,196,824 2,409,135 2,642,530 2,899,098 3,165,479 3,475,509 3,810,230 4,178,162
Operating Income 588,304 751,576 924,825 1,108,175 1,301,692 1,521,027 1,734,783 1,660,577 1,566,185
Other income - - - - - - - - -
Gain / (loss) on sale of assets - - - - - - - - - Earnings Before Interest & Taxes 588,304 751,576 924,825 1,108,175 1,301,692 1,521,027 1,734,783 1,660,577 1,566,185
Interest expense 98,065 86,343 73,656 59,922 45,057 28,966 11,549 - -
Earnings Before Tax 490,239 665,233 851,169 1,048,253 1,256,635 1,492,061 1,723,234 1,660,577 1,566,185
Tax - - - - 123,128 233,288 261,235 291,612 324,542
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1122..22 BBaallaannccee SShheeeett
Statement Summaries SMEDA
Balance SheetRs. in actuals
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Assets
Current assets
Cash & Bank 540,000 975,901 1,547,358 2,267,683 3,141,428 4,177,026 5,375,233 6,740,514 8,283,800 9,750,794 11,225,860
Pre-paid building rent 40,000 44,000 48,400 53,240 58,564 64,420 70,862 77,949 85,744 94,318 -
Total Current Assets 580,000 1,019,901 1,595,758 2,320,923 3,199,992 4,241,446 5,446,096 6,818,463 8,369,544 9,845,112 11,225,860
Fixed assets
Machinery & equipment 274,000 246,600 219,200 191,800 164,400 137,000 109,600 82,200 54,800 27,400 - Furniture & fixtures 483,000 434,700 386,400 338,100 289,800 241,500 193,200 144,900 96,600 48,300 -
Office vehicles - - - - - - - - - - -
Educational Tools 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 -
Total Fixed Assets 762,000 685,800 609,600 533,400 457,200 381,000 304,800 228,600 152,400 76,200 -
Intan gibl e assets
Pre-operation costs 78,280 62,624 46,968 31,312 15,656 - - - - - -
Legal, licensing, & training costs - - - - - - - - - - -
Total Intangible Assets 78,280 62,624 46,968 31,312 15,656 - - - - - -
TOTAL ASSETS 1,420,280 1,768,325 2,252,326 2,885,635 3,672,848 4,622,446 5,750,896 7,047,063 8,521,944 9,921,312 11,225,860
Liabilities & S hareholders' Equity
Current liabilities
Total Current Liabilities - - - - - - - - - - -
Other liabilities
Long term debt 1,278,252 1,136,058 982,143 815,540 635,204 440,002 228,710 - - - -
Total Long Term Liabilities 1,278,252 1,136,058 982,143 815,540 635,204 440,002 228,710 - - - -
Shareholders' equity
Paid-up capital 142,028 142,028 142,028 142,028 142,028 142,028 142,028 142,028 142,028 142,028 142,028 Retained earnings - 490,239 1,128,156 1,928,067 2,895,616 4,040,416 5,380,158 6,905,035 8,379,916 9,779,284 11,083,832
Total Equity 142,028 632,267 1,270,184 2,070,095 3,037,644 4,182,444 5,522,186 7,047,063 8,521,944 9,921,312 11,225,860
TOTAL CAPITAL AND LIABILITI 1,420,280 1,768,325 2,252,326 2,885,635 3,672,848 4,622,446 5,750,896 7,047,063 8,521,944 9,921,312 11,225,860
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1122..33 SSttaatteemmeenntt oof f CCaasshh FFllooww
Statement Summaries SMEDA
Cash Flow Statement
Rs. in actuals
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Operating activit ies
Net profit - 490,239 637,916 799,912 967,549 1,144,800 1,339,742 1,524,877 1,474,881 1,399,368 1,304,548
Add: depreciation expense - 76,200 76,200 76,200 76,200 76,200 76,200 76,200 76,200 76,200 76,200
amortization expense - 15,656 15,656 15,656 15,656 15,656 - - - - -
Pre-paid building rent (40,000) (4,000) (4,400) (4,840) (5,324) (5,856) (6,442) (7,086) (7,795) (8,574) 94,318
Cash provided by operations (40,000) 578,095 725,372 886,927 1,054,081 1,230,800 1,409,500 1,593,991 1,543,287 1,466,994 1,475,066
Financing activities
Change in long term debt 1,278,252 (142,194) (153,915) (166,603) (180,336) (195,202) (211,293) (228,710) - - -
Issuance of shares 142,028 - - - - - - - - - -
Cash provided by / (used for) financ 1,420,280 (142,194) (153,915) (166,603) (180,336) (195,202) (211,293) (228,710) - - -
Investing act iviti es
Capital expenditure (840,280) - - - - - - - - - -
Cash (used for) / provided by invest (840,280) - - - - - - - - - -
NET CASH 540,000 435,901 571,457 720,325 873,745 1,035,598 1,198,207 1,365,281 1,543,287 1,466,994 1,475,066
Cash balance brought forward 540,000 975,901 1,547,358 2,267,683 3,141,428 4,177,026 5,375,233 6,740,514 8,283,800 9,750,794
Cas h av aila ble fo r ap pro pria tio n 540,000 975,901 1,547,358 2,267,683 3,141,428 4,177,026 5,375,233 6,740,514 8,283,800 9,750,794 11,225,860
Dividend - - - - - - - - - - -
Cash carried forward 540,000 975,901 1,547,358 2,267,683 3,141,428 4,177,026 5,375,233 6,740,514 8,283,800 9,750,794 11,225,860
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1122..44 UUsseef f uull PPr r oo j jeecctt MMaannaaggeemmeenntt TTiippss
Technology
• Required spare parts & consumables: Suppliers credit agreements and availability as
per schedule of maintenance be ensured before start of operations
• Energy Requirement: Should not be overestimated or installed in excess and alternate
source of energy for critical operations be arranged in advance
• Machinery Suppl iers: Should be asked for training and after sales services under the
contract with the machinery suppliers
• Quality Assurance Equipment & Standards: Whatever means required products
quality standards need to be defined on the packaging and a system to check them
instituted, this improves credibility
Marketing
• Product Development & Packaging: Expert's help may be engaged for
product/service and packaging design & development
• Ads & P.O.S. Promotion: Business promotion and dissemination through banners and
launch events is highly recommended. Product broachers from good quality service
providers
• Sales & Distribution Network: Expert's advise and distribution agreements are
required with.
• Price - Bulk Discounts, Cost plus Introductory Discounts: Price should never beallowed to compromise quality. Price during introductory phase may be lower and used
as promotional tool. Product cost estimates should be carefully documented before
price setting. Government controlled prices shall be displayed.
Human Resources
• Adequacy & Competencies: Skilled and experienced staff should be considered an
investment even to the extent of offering share in business profit.
• Performance Based Remuneration: Attempt to manage human resource cost should
be focused through performance measurement and performance based compensation.• Training & Skill Development: Encouraging training and skill of self & employees
through experts and exposure of best practices is route to success. Least cost options
for Training and Skill Development (T&SD) may be linked with compensation benefits
and awards.
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Pre-feasibility Study
1122..55 UUsseef f uull LLiinnkkss
• Prime Minister’s Office
www.pmo.gov.pk
• Small & Medium Enterprises Development Authority (SMEDA)
www.smeda.org.pk
• National Bank of Pakistan (SBP)
www.nbp.com.pk
• First Women Bank Limited (FWBL)
www.fwbl.com.pk
• Government of Pakistan
www.pakistan.gov.pk
• Ministry of Industries & Production
www.moip.gov.pk
• Ministry of Education, Training & Standards in Higher Education
http://moptt.gov.pk
• Government of Punjab
www.punjab.gov.pk
• Government of Sindh
www.sindh.gov.pk
• Government of Khyber Pakhtoonkhwa
www.khyberpakhtunkhwa.gov.pk
• Government of Balochistan
www.balochistan.gov.pk
• Government of Gilgi t Baltistan
www.gilgitbaltistan.gov.pk
• Government of Azad Jamu Kashmir
www.ajk.gov.pk
• Trade Development Authority of Pakistan (TDAP)
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www.tdap.gov.pk
• Securi ty Commission of Pakistan (SECP)
www.secp.gov.pk
• Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
www.fpcci.com.pk
• State Bank of Pakistan (SBP)
www.sbp.org.pk
• Pakistan Institute of Fashion Design (PIFD)
www.pifd.edu.pk
• Pakistan Fashion Design Council (PFDC)
www.pfdc.org
1133 KKEEYY A ASSSSUUMMPPTTIIOONNSS
PPaar r tt iiccuullaar r A Assssuummpptt iioonnss
SSaalleess PPr r iiccee GGr r oowwtthh RRaattee 55 %% ppeer r yyeeaar r
CCaappaacciittyy UUttiilliizzaattiioonn GGr r oowwtthh RRaattee 55 %% ppeer r yyeeaar r
IInnccr r eeaassee iinn CCoosstt oof f RRaaww MMaatteer r iiaallss 1100 %% ppeer r yyeeaar r
IInnccr r eeaassee iinn uuttiilliittiieess ((EElleeccttr r iicciittyy//WWaatteer r //GGaass 1100 %% ppeer r yyeeaar r
DDeebbtt // EEqquuiittyy RRaattiioo 9900 :: 1100
PPllaanntt BBuuiillddiinngg 1100 %% ppeer r aannnnuumm
MMaacchhiinneer r yy 1100 %% ppeer r aannnnuumm
OOf f f f iiccee FFuur r nniittuur r ee && EEqquuiippmmeenntt 1100 %% ppeer r aannnnuumm
LLooaann PPeer r iioodd 77 YYeeaar r ss
LLooaann iinnssttaallllmmeennttss QQuuaar r tteer r llyy
FFiinnaanncciiaall CChhaar r ggeess ((LLooaann RRaattee)) 88 %% ppeer r aannnnuumm
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