2014

Shoe King
Where Technology Meets Comfort

Ranchi, Jharkhand

IILM
Shoe King Private Lidmit
8/22/2014

: Coursework:
Group Project on
Entrepreneurship
Shoe King Private Limited

Submitted To: Ms.Shivani Teckchandany

Submitted by: Anubhav Mishra

Mayank Kastiya
Prateek Sharma
Priya Yadav
Shrinath Athreya

CONTENT

1.Company Profile
2.Mission of the Company
3.Vision of the Company
4.Executive Summary
5.Human Resource Policy
6.Financial Analysis
7.Idea Generation
8.Operations: a)Supply Chain
b)Product Generation
9.Marketting Mix & Strategies
10.Future Plans
11.Exit Strategy

Mission
To provide multi utility shoes considering the lifestyle and
technology in todays world.

Vision
Our vision is to be planets most customer centric company,
where innovation, technology and customer lifestyle are our
prime aim.

EXECUTIVE SUMMARY
The purpose of this business plan is to raise 95,00,000 for the
development of a shoe store while showcasing the expected financials
and operations over the next five years.Shoe King Inc. (the Company)
is a Ranchi based corporation that will provide a number of different
mid and high end shoes to customers in its targeted market. The
Company was founded by a group of individulas in Anubav,
Prateek,Shrinath,Mayank and Priya in the year 2014

OBJECTIVES
To Provide customized walking Experience to the people across
different age groups.
To tap the rural marjet where people have noe started looking towards
technology aspects.
To provide comfort while walking.
To be the market leader for the product.
To help customers in developing their Multi taskig skills.
To provide ease of walking and mobile charging experience for the
customers who are in dire need of it.

ORGANIZATIONAL HEIRARCHY

Promoters
Human
Resource
Manager

Finance
Manager

Marketing Operations
Manger
Manager

Our Organization is structured in a way that a team of ten people from

different walks of life will report directly to the promoters of the
company wherein these promoters will also act as managers in the
organisation.

ENTREPRENEURIAL TEAM

The promoters will comprise the core of the entrepreurial team. Each of
them will be incharge of one Division in the organization. They will
handle the day to day workings of Shoe King Private Limited. They are
as follows: -

Mr.Shrinath Athreya & Ms.Priya Yadav: They will be responsible for handling the finance division of this
start up. They will be leading a team of two people who will report
to them on financial matters and expertise.

Mr.Anubav Mishra: He will be responsible for handling the Marketing and sales
division of this start up. He will be leading a team of four people
who will report to him on daily basis.
Mr.Prateek Sharma & Mr.Mayank Kastiya: They will be responsible for handling the IT and operations division
of this start up. They will be leading a team of four people who will
report to them on daily basis.

COMPANY PROFILE

Company
Name
Promoters

Shoe King Private Limited

Mr.Anubhav,Mr.Prateek,Mr.Shrinath,Mr.Mayank
& Ms.Priya
Contribution Mr.Anubhav,Mr.Prateek,Mr.Shrinath,Mr.MayankRs.20,00,000 & Ms.Priya-Rs.5,00,000
Angel Investor Rs.10,00,000
Started
2014
Headquarters Ranchi,Jharkhand
Branches
Delhi,Mumbai,Chennai,kolkatta
IPO
Not Yet
Product
Customised Shoe

Enviromental Analysis
First mover
advantage.
Multi tasking
product.

Creating instant
awareness.

Strengths

Weakness

Introducing new
trends.

Opportunity

Entry of new
entrants.
Technology Barriers.

Threats

Thus, we will also emphasise on the various micro and macro

enviroment factors affecting the organisation.
Micro Enviroment

Companys Internal
Suppliers
Marketing Intermediaries
Customers
Competitors.
Publics

Macro Enviroment

Demographic
Economic
Natural
Technological
Political.
Cultural

 Micro Enviroment
Companys Internal Environment- functional areas such as top
management, finance, and manufacturing, etc.
Suppliers - provide the resources needed to produce goods and
services and are an important link in the value delivery system.
Marketing Intermediaries - help the company to promote, sell, and
distribute its goods to final buyers.
Customers - five types of markets that purchase a companys
goods and services i.e. Consumer Markets, Reseller Markets,
Business Markets, Government Markets and Internationsal
Markets.
Competitors - those who serve a target market with similar
products and services against whom a company must gain strategic
advantage.
Publics - any group that perceives itself having an interest in a
companys ability to achieve its objectives.
Macro Enviroment
Demographic - studies populations in terms of age, gender, race,
occupation, location and other statistics.
Economic - factors that affect consumer purchasing power and
spending patterns such as change in income, changing consumer
spending patterns etc.
Natural - natural resources needed as inputs by marketers or that
are affected by marketing activities.such as shortage of raw
materials etc.
Technological - forces that create new technologies, creating new
product and market opportunities.
Political - laws, agencies and groups that influence and limit
organizations and individuals in a given society.
Cultural - institutions and other forces that affect a societys basic
values, perceptions, preferences, and behaviors.

Product
Launch

Segmentation

Targeting

Positioning

SEGMENTATION
We will initiate by adopting a common marketing
strategy that involves dividing a broad target market into subsets
of consumers on the basis of different criteria that may relate to
either their interest or the geographical regions they belong to,
and then will design and implement strategies to target them.
DEMOGRAPHIC
Age Based
Income Based
Gender Based

GEOGRAPHIC
Metro Cities
Urban Areas
Rural Areas
PSYCHOGRAPHIC
Lifestyle
Opinions, interests and hobbies
Degree of loyalty
Occasions
Benefits sought
Usage

TARGETING
Targeting is
the
second
stage
of
the SEGMENT "Target" POSITION (STP) process. After the market
has been separated into its segments, we will select a segment or series
of segments and target it/them. Resources and effort will be targeted at
the segment.

The first is the single segment with a single product. In other word, the
marketer targets a single product offering at a single segment in a market
with many segments. For example, British Airways Concorde is a high
value product aimed specifically at business people and tourists willing
to pay more for speed.

Secondly the marketer could ignore the differences in the segments, and
choose to aim a single product at all segments i.e. the whole market.
This is typical in mass marketing or where differentiation is less
important than cost.

Finally there is a multi-segment approach. Here a marketer will target a

variety of different segments with a series of differentiated products.
This is typical in the motor industry. Here there are a variety of products
such as diesel, four-wheel-drive, sports saloons, and so on.
Now have a look at the final stage, positioning.
POSITIONING

Promotion
Place
Price

Product

Shoe King is aimed to be one of the pioneers in marketing and the

marketing mix of it is one of the strongest. Depending mainly on pull
strategy, we will mainly focus on establishing its hold in face of major
competitors like adidas and Shoe King initiating with the small brands
1. Product
Shoe King generally offers portable electromagnetic chargeable shoes
with a wide range of features and all of which are aimed to be on its topselling product categories. The various features its shows are mobile
charging, shoes come slippers as it will be containing microprocessor
chips which is programmed by Intel engineers. It contained a
transforming button whose single pressing to transform the shoe into a
relaxing slipper.
We may also emphasize in heading gear under the brand name Comfort
Specialties, through Shoe King Team manufactures and distributes ice
skates, skate blades, in-roller skates.
Product Categories: A) Leather Shoes
B) Non-Leather Shoes
C) Plastic Shoes (Available during winter season)
D) Shock Proof Shoes.

S.No. Name
1

Leather Shoes

Non-Leather
Shoes

Urban
Market

Rural Top Middle

Market Class Class

7000 3000

5000 2000

Lower
Class
1500
1000

Plastic Shoes

3000 1500

1000

Shock Proof Shoes

5000 3500

1500

2. Price:
Shoe Kings pricing is designed to be competitive to the other fashion
Shoe retailer and also depending upon the features it have. The pricing is
based on the basis of premium segment as target customers. Shoe King
as a brand commands high premiums. Shoe King pricing strategy makes
use of vertical integration in pricing wherein they own participants at
differing channel levels or take part in more than one channel level
operations. This can control costs and influence product pricing.
3. Place:
Shoe King shoes are carried by multi-brand stores and the exclusive.
Shoe King has stores in metropolitan Cities of Delhi, Chennai, and
Kolkata Mumbai. Shoe King sells its product to about 2000 r retail
accounts in the Metropolitan Cities. In the national markets, Shoe King
sells its products through independent distributors, licensees and
subsidiaries. The company has production facilities in India and
customer service and other operational units worldwide operational from
the year 2018.
4. Promotion:
Promotion is largely dependent on finding accessible store locations. It
also avails of emphasizing on Integrated Marketing Communication for
various promotional activities.

Advertising

Public
Relations

Sales
Promotion

Integrated
Marketing
Communication

Personal
Selling

Indirect
Marketing

Advertising
Targeting ads in various newspaper such as brand equity etc and
will create strategic alliances. Thus, we will be emphasizing a part
part of Digital Marketing.
Sales Promotions
Go online with shoeking.com offering at a discounted rates and
free home delivery. We will provide cash on delivery to every
purchase beyond Rs.1000.
Indirect Marketing
We may also initiate in indirect marketing of Shoe King by
emphasizing on co-branding. For eg:- emphasizing our product
while targeting upcoming movies and most watched tv shows like
comedy nights with kapil.

 Personal Selling
We may also think of focusing on door to door selling but it will be
the last option to be preferred.
Public Relations
We can also collaborate with various media platforms i.e. Print,
Broadcast for product launch and various conferences.

We can also sponsor events such as Hoop It Up and The Golden West
Invitational. Shoe Kings brand images, the Shoe King name and the
trademark swoosh; make it one of the most recognizable brands in the
world. Shoe Kings brand power is one reason for its high revenues.
Shoe Kings quality products, loyal customer base and its great
marketing techniques all contribute to make the shoe empire a huge
success.

Former Indian soccer team captain Baichung Bhatia is the new brand
ambassador of Shoe King.

HR POLICY
1. CONDITIONS OF EMPLOYMENT POLICY
1.1 Contract of Employment
A Contract of Employment stipulating all the conditions of employment
shall be signed by all employees on the first day of employment.
1.2 Working Hours
The workweek comprises a minimum of 48 hours, beginning Monday
and ending Saturday of each week.
The official working hours are from 8:00am to 4:30pm with half an hour
brakes lunch between 12:30 pm to 01:00pm. Each employee is required
to put in at least eight hours per day. However the nature of work may
require some variation and extension of these times.
1.3 Duty Station
Duty station shall be stated in the letter of appointment and any transfer
to other field office shall be communicated in writing. The workstation
for each member of staff shall be specified in the letter of appointment.
Employees will however be required to report to the SHOE KING Head
Office before proceeding to their place of posting.
1.4

CLASSIFICATION OF EMPLOYEES
The employees shall be classified as under:-a. Permanent: Permanent employee is an employee who has
been engaged in a vacancy on the regular establishment of the
institute and who has satisfactorily completed his probationary

period of service and whose employment in permanent services

has been confirmed in writing.
b. Probationer:
Probationer is an employee who is
provisionally employed with a view to being considered for
appointment on permanent basis on rolls of the institute.
c. Casual: Casual employee is an employee who has been
engaged on a casual basis or for specific work, which is of an
essentially casual nature and likely to be completed within a
stipulated time.
d. Trainee: Trainee is a learner who is paid a stipend / pay
during the period of his apprenticeship / training. All trainees
will be governed by the terms and conditions of employment
mentioned in their appointment letter and or any special rules or
orders framed by the institute from time to time.
2. RECRUITMENT AND SELECTION POLICY
2.1 Introduction
Recruitment and Selection aim to search and hire suitable candidate to
fill vacancies in SHOE KING with the view to satisfying human
resources needs. The search may be internal and/or external.

Any position within SHOE KING that becomes vacant will be filled, on
completion of a Requisition Form by the HOD. Restructured on newly
created positions will only be activated upon approval/ sanction from the
management.
The success and adaptability of an institute depends upon the
recruitment of employees who are flexible, adaptable and committed to
the success of the SHOE KING.

2.2 Objectives
This section aims to promote and maintain high standards of
professional recruitment practice by encouraging recruiters to adhere to
best practices.
Its purposes are to:
a) Ensure that recruitment is considered an essential part of the human
resource
b) Strategy and consequently an integral part of the overall business
strategy;
c) Ensure and explain best practice for all types of recruitment;
d) Maintain professional standards whether recruits are easy to find;
e) Ensure that equality of opportunity is considered an integral part of
good
Recruitment practices and procedure;

2.3 Recruitment Authorization Procedure

Authorization
All authorization procedure detailed below must be completed prior to
the commencement on any recruitment procedure.
A) Prior to the employment of any employee the Employment
Authorization Form
Must be completed.

B). Vacancies related Requisition Form dully completed by Immediate

Supervisor/Head & Approved by respective dept. HOD will be
submitted to HR Dept. The HR Deptt will finally take the sanction from
the Chairperson.

Procedure
a) The Department Manager/Faculty/Head
Employment Authorization Form.

will

complete

the

b) The Department Manager/Faculty/Head is responsible to ensure

correct authorization procedures have been complied with.
c) The Department Head will provide the Human Resources Deptt with a
fully authorized Employment Authority Form and instruct
commencement of Recruitment.
d) The Human Resources Deptt will control that the correct
authorization has been obtained. When all is in order they shall
commence the recruitment process.

2.4 Newly Created or Restructured Positions

Authority shall be vested in the Management to consider request for
the activation of a newly created or restructured position.
a) Activation of a position shall be allowed by the submission of an
Employment Authorization Form by the HOD of respective Deptt. To
Head (HR) Department.

b) Once the need to fill a vacancy has been identified, the HOD will
submit a motivated recommendation to the Board for the activation of
the position.
c) Higher Managerial position will be sanctioned through Newspaper
advertise after the necessary approval of Positions / Vacancies budget
etc from CMD.
d) Lower Managerial & Executive Vacancies will be filled through
placement Agencies.

2.5 Employment Procedure

a) The Human Resources Deptt shall receive all applications for
employment and shall acknowledge receipt thereof in writing. All
applicants for employment shall be addressed to the chairperson.
b) The Human Resources Deptt shall sort all applications that meet the
minimum appointment requirements as advertised, and then forward
these applications to the HOD concerned, together with a full list of all
applications received.
c) The HOD, in consultation with the Human Resources Deptt., shall
draw up the shortlist of candidates for interviewing.
d) The Human Resources Deptt shall invite the short listed candidates
for interviews, and will ultimately make a recommendation to the CMD
for appointment.
e) The Human Resources Deptt shall ensure that Reference Check on
shortlist candidates is done, and then the employment offer in
consultation with the relevant HOD to the selected candidate which

upon acceptance shall be followed by an appointment letter signed by

the CMD or his/her delegate.

2.6 Employment Interview Panel

The Employment Interview Panel shall be provided with the ground
rules of and procedures for interviewing (by the Human Resources
Deptt. / Management) prior to the actual commencement of interviews.
The Panel shall consist of the following persons:
a) The HOD concerned
b) Chairperson
c) Director

2.7 Appointment
All staff will be appointed by the SHOE KING Management or as
delegated authority
Letters of Appointment: The formal letter of appointment will bear the
signature of the Chairperson or as delegated. The letter shall require the
signature of the appointee before the appointment is considered
effective.
Job Description: On appointment, an employee shall be given a job
description. This shall specify the scope and terms of reference for their
position. Each member of staff/faculty is expected to devote their time
and attention to their work and not engage in activities that may conflict
with SHOE KING Institutes
interests or negatively affect their
performance. Job Descriptions shall be reviewed yearly.

2.8 EMPLOYMENT OF WORKERS/FACULTY/STAFF

Rules for hiring:-2.8.1 Replacement:
A replacement to the existing
workers/faculty/staff personnel whose services have been vacated
due to absence / resignation to the desired level / discipline /
otherwise may be under taken, if the requirements are urgent.
However, a written approval / sanction must be obtained before
hiring by the concerned department head.
2.8.2 Additional Worker : The need of additional
worker/faculty/staff personnel is judged and estimated over a
period of time either prior to commencing a project or mid way,
when the need arises. Once the need has been determined, the
same may be justified and written approval / sanction must
invariably be taken prior to hiring the worker/faculty/staff
personnel by the concerned department head.
2.8.3 Verification : Verification of the individuals identity and
capability being an important aspect, must also be fully ensured.
Skilled individual must be
kept on trial for a period of 02-07 days
to determine their degree of performance.
Probation: Any appointment made on SHOE KING Institute shall be
subject to a probation period as specified in the letter of appointment.
One month towards the end of the probation period, employees
immediate supervisor shall make an appraisal report recommending a
confirmation or termination of the employees services. Where
necessary, the probation period may be extended as considered
necessary by SHOE KING Institute. An employee who is on probation
may have his appointment terminated at any time without notice. In the

event of such termination, the employee is paid for the period worked up
to the time of termination Confirmation of appointment: On
recommendation from the immediate supervisor, Group.Dy.GM HR
shall in writing, confirm the appointment.
Duration of employment: Unless otherwise stated, employment for all
staff shall be on permanent basis subject to satisfactory completion of
the probation period .

2.9 Personal Data

On acceptance of an appointment, the new staff member is required to
complete the Employee Personal Data form (As per Appendix ).
The new employee/ Selected Candidate have to submit the form. Any
changes in personal status shall be reported promptly to the Human
Resources Deptt/HOD/Chairperson by completing a fresh Personal Data
Form. Staff/Faculty records and related correspondence shall be treated
confidentially at all times.

2.10 INDUCTION
Policy Statement
All new employees should complete an induction program upon their
commencement. The induction period also refers to the Six month
probationary period during which it is recognised all staff/faculty may
need ongoing familiarisation with their role, the business, systems and
processes.

Objective
The objective of the induction policy is to familiarise the employee with
the institute, their job, the industry, colleagues, institue systems,
processes and policies with a view to ensuring they can make a
contribution to effective outcomes as quickly as possible.
The induction should be a combination of standard components as well
as learning specifically tailored to the role.
Application
The induction policy will be successfully applied when all new
employees meet their probationary period performance targets.

Process
Complete the induction planning format prior to the employees
commencement date. Introduce the employee to the induction schedule
and dates.

3. LEAVE RULES

1.0 OBJECTIVE
To provide various kinds of leave to employees of the institute so
that absenteeism and unplanned leave could be controlled. It is
expected that employee would plan their leaves in advance except in
an emergency.

2.0

APPLICABILITY

These rules shall apply to all regular employees of the institute

including those on probation / visiting and shall not apply to the
person employed on Temporary / part time / daily rates except when
the terms of employment provides otherwise.

3.0

TYPES OF LEAVES
3.1 Casual Leave (CL)
3.2 Earned Leave (EL)
3.3 Sick Leave (SL)
3.4 Maternity Leave (ML)
3.5 Leave without pay (LWP)

4.0

ELIGIBILITY
4.1 Casual Leave (CL)
4.1.1.An employee shall be entitled to 07 CL in a calendar year
i.e. from 1st July to June30.
4.1.2.CL is intended to cover casual absence of the employee
and can be granted for half day also. For half days leave
the lunch interval shall be taken as the dividing time.
4.1.3.CL shall be credited on pro-rata basis if any person joins
in between the year. Half CL will due after completing 20
complete working days.
4.1.4.Casual leave not availed will not be encashed in any case
and will be lapsed.
4.1.5.Casual Leave will be permitted after the season.
4.2 Earned Leave (EL)
4.2.1 An employee shall be entitled to 15 days EL in a
Calendar year.
4.2.2 One Earned leave will due after working 20 complete
working days.

4.3

4.2.3 EL shall be credited to employee leave account in

advance on a pro rata basis. New Joinee however can
avail EL only after completing 6 -months of their
services/ confirmation in the institute.
4.2.4 EL for half day is permissible.
4.2.5 EL can be combined with CL.
4.2.6 EL can be encashed only after completing one years of
service.
Sick Leave (SL)

Can be availed in the event of the individual being unfit to attend

office
1. An employee shall be entitled to 07 SL in a calendar year i.e.
from 1st July to June. 30
2. SL for more than two days should be duly supported by a
medical certificate.
3. Weekly offs, declared holidays falling within the sick leave
period will be counted as leave. All other holidays (summer
vacation, maternity leave etc.) may be prefixed/ suffixed and
will be excluded.
4. SL may be taken for half day also i.e. either pre-lunch or
post-lunch period
4.4

Maternity Leave (ML)

4.4.1 Female employees with at least 12 months of
continuous service are entitled to maternity leave.
4.4.2 Maternity leave is unpaid leave which is available for a
minimum period of six weeks and for a maximum
period of 52 weeks if the employee is the primary
career. Other types of leave can be taken in conjunction
with maternity leave providing the total period of
absence does not exceed 52 weeks.
4.4.3 Any employee taking maternity leave is required to take
at least six weeks continuous leave after the date of the

birth of her child. The employer may, with 14 days

notice, require the employee to commence maternity
leave within six weeks of the presumed confinement
date.
4.4.4 Applications for maternity leave should include
personal details, a medical certificate detailing the
expected date of confinement or birth, proposed
commencement date and duration of leave. Advice as to
whether superannuation payments will continue should
be given by the employee.
4.4.5 Where the pregnancy is terminated other than by birth
of a living child and the employee has not commenced
maternity leave, her entitlement to such leave ceases to
exist. However, an employee may be entitled to special
maternity leave, as specified by her doctor, if the
pregnancy has extended beyond 28 weeks, and is
terminated other than by birth of a living child.
4.4.6 Details of return to work date must be given four weeks
in advance. The employee is entitled to return to the
position held prior to taking maternity leave or to an
alternative position of comparable status and pay.
4.5 Leave Without Pay (LWP)
4.1.1 Employee may be granted LWP at the discretion of the
management.
Absence from work without
authorization of LWP by any employee for more than
10-days will lead to termination of service without
notice.
Type
Leave

of

Annual
Entitlement

Maximum
Accrual(3
years)

Earned
Leave

15

50

Sick Leave

21

Casual
Leave

--

Vacation

Maternity
Leave

As decided by the
management from time
to time

14

As per law on the subject

5.0 ENCASHMENT OF LEAVE

Only EL is encashable. Encashment of EL shall be allowed in excess
of 30 days EL accumulated in individual leave account. Employees
leaving services of the institute as a consequence of resignation /
termination to services / death while in service will be paid in lieu of
EL standing to their credit at the time of leaving services subject to a
maximum of 30 EL.

6.0 ACCUMULATION OF LEAVE

EL can be accumulated to maximum 50 days in individual leave
account.

FINANCE AREA: - (RATIO ANALYSIS)

Current ratio shows that current assets are more than the current
liabilities, which means that company will not face any problem in
the future; it can pay off its liabilities out of its current assets.
Quick Ratio of the company is showing the liquidity of the
company to pay its current liabilities out of its quick or acid assets.
Higher the ratio the better it is.
Stock turnover ratio is showing the greater efficiency of the
organization in terms of inventory and sales. The Higher the ratio
the better it is because it shows that how many times the average
inventory is turn into sales.
Debt Equity ratio of the company is indicating a good
performance because Debt should be less as compared to the
Equity in an organization, especially if it is a start up. Because it is
indicating less risks.
Return on Capital Employed (ROCE) is a profitability ratio that
measures how efficiently a company can generate profits to capital
employed. Higher ratio will be more preferable

Below Are the Snapshots of Financial Statements of Shoe King Private

Limited. These Include the following: A) Income Statement
B) Balance Sheet.
C) Cash Flow Statement.

Company Name

FORECASTED REVENUE
Units sold
annually

Average
price per unit

Annual revenue
per product

Product 1

2500

125.00

312,500.00

Product 2

500

100.00

50,000.00

Product 3

400

65.00

26,000.00

Product 4

500

25.00

12,500.00

TOTAL OF FORECASTED REVENUE

401,000.00

COST OF GOODS SOLD

Expected
gross margin

Annual cost of
goods sold

Product 1

20%

62,500.00

Product 2

20%

10,000.00

Product 3

20%

5,200.00

Product 4

20%

2,500.00

TOATL COST OF GOODS SOLD

80,200.00

ANNUAL MAINTENANCE, REPAIR AND OVERHAUL

Factor (%) on capital equipment

10%

ASSET DEPRECIATION
Number of Years

TAX
Annual Tax Rate

30%

INFLATION
Annual Inflation Rate

3%

PRODUCT PRICE INCREASE

Annual Price Increase

5%

FUNDING
Loan Amount
Annual interest rate
Term of loan (months)

50,000.00
5.00%
60

Monthly rate

0.41%

Payment

941.02

Total Amount Payable

56,461.20

ASSETS
Current Assets
Cash and short-term investments
Accounts receivable
Total inventory
Prepaid expenses
Deferred income tax
Other current assets
Total current assets

Property and Equipment

Initial balance

2014

2015

2016

50,000.00

328,430.81

468,011.39

705,924.00

3,000.00

3,000.00

3,000.00

3,000.00

3,000.00

3,000.00

25,000.00

25,000.00

25,000.00

25,000.00

25,000.00

25,000.00

2017

5,000.00

5,000.00

5,000.00

83,000.00

361,430.81

501,011.39

738,924.00

2014

2015

2016

Initial balance

########## ##########

5,000.00

2018

5,000.00

5,000.00

########## ##########

2017

2018

Buildings

20,000.00

20,000.00

20,000.00

20,000.00

20,000.00

20,000.00

Land

10,000.00

10,000.00

10,000.00

10,000.00

10,000.00

10,000.00

Capital improvements
Machinery and equipment

10,000.00

Less Accumulated depreciation expense

Total Property and Equipment

Other Assets

40,000.00

Initial balance

10,000.00

10,000.00

10,000.00

10,000.00

10,000.00

6,000.00

12,180.00

18,540.00

25,080.00

31,800.00

34,000.00

27,820.00

21,460.00

14,920.00

8,200.00

2014

2015

2016

2017

2018

Goodwill

Deferred income tax

Long-term investments

Deposits

Other long-term assets

Total Other Assets

TOTAL ASSETS

123,000.00

395,430.81

528,831.39

760,384.00

########## ##########

LIABILITIES
Current Liabilities

Initial balance

Accounts payable

2,000.00

2014

2015

2016

2017

2018

2,000.00

2,000.00

2,000.00

2,000.00

2,000.00

Accrued expenses

Notes payable/short-term debt

Capital leases

Other current liabilities

100.00

100.00

100.00

100.00

100.00

100.00

Total Current Liabilities

2,100.00

2,100.00

2,100.00

2,100.00

2,100.00

2,100.00

2014

2015

2016

2017

2018

Debt

Initial balance

Long-term debt/loan

50,000.00

40,951.26

31,450.08

21,473.85

10,998.80

Other long-term debt

100,000.00

200,000.00

150,000.00

175,000.00

225,000.00

150,000.00

152,100.00

243,051.26

183,550.08

198,573.85

238,098.80

152,100.00

Initial balance

2014

2015

2016

2017

2018

Total Debt

Other Liabilities

Other liabilities (specify)

Other liabilities (specify)

Total Other Liabilities

TOTAL LIABILITIES

52,100.00

43,051.26

33,550.08

23,573.85

13,098.80

2,100.00

EQUITY
Initial balance
Owner's equity (common)
Paid-in capital

2014

2015

2016

2017

2018

50,000.00

50,000.00

50,000.00

50,000.00

50,000.00

50,000.00

250,000.00

250,000.00

250,000.00

250,000.00

250,000.00

250,000.00

Preferred equity

Retained earnings

181,479.55

374,381.31

591,910.15

848,458.65 ##########

TOTAL EQUITY

300,000.00

481,479.55

674,381.31

891,910.15 ########## ###########

TOTAL LIABILITIES AND EQUITY

352,100.00

524,530.81

707,931.39

915,484.00 ########## ##########

Operating activities
Net income
Depreciation

Year 1

Year 2

Year 3

Year 4

Year 5

181,479.55

192,901.76

217,528.85

256,548.49

318,090.68

6,000.00

6,180.00

6,360.00

6,540.00

6,720.00

Accounts receivable

Inventories

Accounts payable

Amortization

Other liabilities

Other operating cash flow items

187,479.55

199,081.76

223,888.85

263,088.49

324,810.68

Year 1

Year 2

Year 3

Year 4

Year 5

Capital expenditures

Acquisition of business

Sale of fixed assets

Other investing cash flow items

Year 1

Year 2

Year 4

Year 5

Total operating activities

Investing activities

Total investing activities

Financing activities
Long-term debt/financing

90,951.26 - 59,501.18

1,000.00
-

1,000.00

Year 3
15,023.76

39,524.95 - 85,998.80

Preferred stock

Total cash dividends paid

Common stock

Other financing cash flow items

Total financing activities

Cumulative cash flow

Beginning cash balance

Ending cash balance

90,951.26 - 59,501.18

15,023.76

39,524.95 - 85,998.80

278,430.81

139,580.58

237,912.61

302,613.44

238,811.88

50,000.00

328,430.81

468,011.39

705,924.00

##########

328,430.81

468,011.39

705,924.00

########## ##########

INCOME
2014

2015

2016

2017

2018

Revenue
Product 1

312,500.00

328,125.00

360,937.50

415,078.13

498,093.75

Product 2

50,000.00

52,500.00

57,750.00

66,412.50

79,695.00

Product 3

26,000.00

27,300.00

30,030.00

34,534.50

41,441.40

Product 4

12,500.00

13,125.00

14,437.50

16,603.13

19,923.75

Total revenue

401,000.00

421,050.00

463,155.00

532,628.25

639,153.90

Product 1

62,500.00

64,375.00

68,237.50

74,378.88

83,304.34

Product 2

10,000.00

10,300.00

10,918.00

11,900.62

13,328.69

Product 3

5,200.00

5,356.00

5,677.36

6,188.32

6,930.92

Product 4

2,500.00

2,575.00

2,729.50

2,975.16

3,332.17

80,200.00

82,606.00

87,562.36

95,442.97

106,896.13

320,800.00

338,444.00

375,592.64

437,185.28

532,257.77

Cost of Sales

Cost of goods sold

Gross Profit
Non-Operation Income
Rental

Interest income

Loss (gain) on sale of assets

Other income (specify)

Toatal Non-Operation Income

TOTAL INCOME

320,800.00

338,444.00

1,000.00
1,000.00

376,592.64

437,185.28

532,257.77

EXPENSES
Operating expenses
Sales and marketing

15,000.00

15,450.00

16,377.00

17,850.93

19,993.04

Depreciation

6,000.00

6,180.00

6,360.00

6,540.00

6,720.00

Insurance

7,500.00

7,725.00

8,188.50

8,925.47

9,996.52

Payroll and Payroll Tax

21,000.00

21,630.00

22,927.80

24,991.30

27,990.26

Property taxes

2,500.00

2,575.00

2,729.50

2,975.16

3,332.17

Maintenance, repair, and overhaul

1,000.00

1,030.00

1,060.00

1,090.00

1,120.00

Utilities

5,000.00

5,150.00

5,459.00

5,950.31

6,664.35

300.00

309.00

327.54

357.02

399.86

Interest expense on long-term debt

2,243.50

1,791.06

1,316.00

817.19

293.44

Other

1,000.00

1,030.00

1,091.80

1,190.06

1,332.87

61,543.50

62,870.06

65,837.14

70,687.43

77,842.51

Administrative fees

Total operating expenses

Non-Recurring Expenses
Unexpected Expenses

Other expenses

Total Non-Recurring Expenses

TOTAL EXPENSES

61,543.50

62,870.06

65,837.14

70,687.43

77,842.51

77,776.95

82,672.18

93,226.65

109,949.35

136,324.58

TAXES
Income Tax
Other Tax (specify)

TOTAL TAXES
NET PROFIT

77,776.95

82,672.18

93,226.65

109,949.35

136,324.58

181,479.55

192,901.76

217,528.85

256,548.49

318,090.68

OPERATIONS

Raw material required

The raw material required for manufacturing of our product is
1.

Rubber

2.

Rexene

3.

Leather

4.

Metal

5.

Cloth

6.

Foams

Supply chain

Local vendor -> manufacturer-> warehouses-> distributor-> retailer->

customer
For the manufacturing of our product we have selected local vendor to
provide us with the raw materials such as rubber, leather, foam etc. We
also have tie-up with Intel, Intel will provide us with the microprocessor
chips we needed to implant in our product.
After collecting all the raw material from our vendors and associates we
manufacture shoes with the latest technology and machines which we
have purchased. We produce 4 different types of products in different
numbers in a single day.

After manufacturing all the products we keep it in our warehouses for

storage.
As per the demand our distributor will distribute the product to different
retail stores in India.

Future Plans
We as the Founder expects that the business will aggressively expand
during the first five years of operation. We intend to implement
marketing campaigns that will effectively target female consumers
within the target market.

Exit Strategy
We would exit the market in case we feel that the market share has
decreased substantially. Another thing would be that we would leave the
market would be when Outside investors want to collect their return and
have to Remember that equity investments are not like loans with
interest. The investor sees no return until he cashes out, or the company
is sold. Even five years is a long time to wait for any pay check.