Corporate Strategy of Halifax and the Bank of Scotland Essay

Corporate Strategy of Halifax and the Bank of Scotland - Essay Example From a building society with a long history of lending to local working people who build their homes, Halifax demutualized in 1997 officially becoming Halifax plc. Shortly before, it merged with the Leeds Permanent Building Society and acquired Clerical Medical Fund Managers, a British life insurance company. When Halifax was listed at the London Stock Exchange in June 1997, more than 7.5 million customers became stockholders of the new bank, and it became the fifth largest company in the UK in terms of market capitalization. The new publicly-listed company continued to expand its consumer base with the acquisition of Birmingham Midshires Building Society in 1999. The Bank of Scotland (BoS) has been one of the two largest banks in Scotland, in competition primarily with the Royal Bank of Scotland. It is considered the oldest surviving bank in the UK. Prior to merging with Halifax in 2001, the BoS had little presence in Wales and England. Its strength was limited in the corporate and business sectors. Prior to the 2001 merger with Halifax, its strategy of trying to reach out to markets outside the UK and to establish a retail or mass consumer presence was at times, erratic. Riding the spate of consolidation and mergers in the late 1990s, the BoS made a bold move to take over National Westminster Bank (NatWest), a much larger bank in from late 1999 to early 2000, but was defeated in the final bid by the Royal Bank of Scotland. The BoS also made forays into the markets outside UK - establishing a presence in Australia, with its purchase of Perth-based Bank of Western Australia, in addition to its presence in the United States, Moscow and Singapo re. It however sold its New Zealand bank asset, the Countrywide Bank of New Zealand to Lloyds TBS in 1998. The Bank of Scotland's attempt to establish a wide presence in retail banking in the United States was characterized by controversy. The deal with Christian preacher Pat Robertson folded after the evangelist's racist and sexist comments about Scotland were scored by civil rights groups. In 2001, the 10.8 billion-pound merger between Halifax and the Bank of Scotland, resulting in Halifax Bank of Scotland (HBOS) was called by the company executives as "the new force in banking" (Burt & Crosby n.y.). As a result, HBOS has now 22 million customers across the UK or two out of five households. Halifax, the consumer champion brought into the table, financial strength and scale, new products and channels and innovation. The Bank of Scotland, the old hand at commercial lending, allowed Halifax shareholders to fulfill its diversification strategies, and offered its lending capability and culture, opportunities in the small-and-medium and corporate markets, enhanced retail opportunities and partnership expertise. The strategic directives of the new company rested in its business balance (retail and commercial lending), leading brands (18 in all), market power (UK's number four financial service company) and management strength. Two strategies underpin HBOS drive to become UK' s fastest growing financial services company: one is through diversification of its services across all markets, and two, offering low rates and fees to ramp up volumes and to further achieve competitive pricing. The diversified strategy of the newly formed HBOS was reflected in five main banking divisions:

Use of ethical behavior will pay off in the long-run

Use of ethical behavior will pay off in the long-run Ethical behavior is morally accepted as being good and right in a particular situation. The society-at-large is always demanding high ethical and moral standards from organizations. Unethical behavior is always seen as a virus working on the society and eating it up. In a business organization, the top level managers have a big part to play when it comes to ethical issues. How they react when it comes to ethical dilemmas makes a big difference as to how the other employees of that organization will face the same situation. A big example is what Johnson Johnson Company executives did when the Tylenol poisoning took place. They pulled out all the stocks out of the market even thou it cost them millions of dollars, because the management knew it was the ethical thing to do. It uplifted their image amongst its customer base rather than downgrading it since the customers could see that the company had their best interests at heart. That particular reaction set a big example for other org anizations throughout the world to follow. When it comes to ethical behavior in the long run, I believe it will pay off for any organization. In todays intense business environment its more important than ever to have strong ethical programs in place. In a survey conducted by the ethics resource centre on more than 4,000 employees, one third had witnessed ethical misconduct in the past year (Flynn, 1995). Ethical standards depict behaviors morally accepted as good and right as opposed to bad or wrong in a particular setting it is particularly crucial for the business for a number of reasons. For example, murder and robbery are not only illegal but are universally regarded as wrong, while dishonesty , while not necessarily illegal, is usually thought to be immoral. They are created and adopted by people who are interested primarily in ensuring there are guidelines for behavior for the group members. For example, doctors and lawyers have ethical codes of practice which they sear to uphold as part of their professional practice. Ethics in the society carries a lot of value, so I believe that ethical behavior is what all working professionals should aim to have. However its not just the ethical attributes that the employees and organizations should have, but also the behavior they put forward with regards to those ethical issues is also important. To build a good career one should live there life by rules of ethics in order to safeguard themselves and also society as a whole. Most business experts suggest that establishing a code of conduct can help the company to behave ethically. A code of conduct is a formal document stating the principles and the ethical rules it expects the employees to follow in the organization. Ethical standards protect the business from scandals and prevent them in the future. Ethical statements imply the employees, business associates, and the larger community a framework of the companys operating principles (rules and regulations) which needs to be followed, why the company exists, what the company believes in, and how it goes about to comply with its professed beliefs. In addition, reviewing the standard operating procedures and performance measurements will ensure the business owners and managers that it is well structured and does not encourage unethical behavior. Studies has shown that organizations are now increasingly take account of ethical considerations, there has been a shift from traditional profit and free market bu siness approach to ethical approach, in favor of consumer interests. Practicing ethical behavior can develop the business to great heights. High ethical behaviors will set high standards and put the work practices of the organization to high levels. It will develop a discipline which will help your business to succeed. It will also build teamwork amongst employees. They will show respect for the organization, its culture and top level management. It will build trust and confidence among colleagues. Also organizations which practice ethical standards can attract good short and long term investment. Investors will definitely see it more viable to associate itself which businesses who put ethical issues to high regards hence uplifting the investors image in the society and the business environment. Most investors believe that it is important for companies to consider ethical and social issues alongside financial issues in order for them to be sustainable and remain competitive in the long run. Ethical investors are essentially concerned with how profit is made and looks to maximize profit at the same time trying to minimize and avoid negative social effects. On the positive side, the public will begin to recognize and to honor individual companies for their contributions to solving most obdurate problems. This puts companies in a very strong situation since all the stake holders like shareholders, government, employees, suppliers and local communities benefit Ethical investments is one way of responding to issues of social responsibility in business decisions and activities and avoiding being self serving. Socially responsible factors in areas of public concern include the environment, sustainability, and globalization. Behaving ethically also improves the quality of work life and enhances the role of every employer in creating an environment where employee pride blossoms and theft losses disappear. There is reduced corruption when employees are treated with fairness and are valued as individuals, as they take pride in their organization. Positive results are achieved when employees are given a basis for trust and respect to live by. If employees believe all are held to similar high standards, they likely will feel better about themselves, their colleagues, their organization and behave ethically when dealing with customers and business associates. Research over the years have proved that consumers are used to buying products from companies that have public recognition, a company record or being promoted. Enhancing customer loyalty to the brand is probably the single most powerful incentive for convincing companies to adopt ethics as a way of life. Another advantage of behaving ethically is that it promotes better staff retention and attraction; good organizations cannot function without good people. Ethical organizations have increased commitment by employees as good employees want to work with responsible and ethical employers. When a company fails to be a good employer they lose good staff and it reduces the possibility of attracting good new-comers. Many business want employees to behave ethically because such a reputation is good for business which in turn can mean larger profits. How one behaves in the workplace helps them in building a good reputation and praises over the years to come. Similarly, encouraging employees to act ethically can save money by reducing employee theft, down time and lawsuits. It is noticed that that when employees dont show respect for the company and colleagues, it encourage many forms of theft such unnecessary phone calls on company account and taking office supplies home. It is important that employees have a clear understanding of their organizations ethical standards and a feeling of management support for acting within those standards. Teaching ethics to an employee is not always effective. Management must set examples by their personal alignment with ethical standards and principles. Thus, Managers have to always keep in mind that leading by example is the first step in developing a culture of ethical behavior in the organization. PART TWO; Q2) Within the business context, businesses are expected to have good ethical values and act socially responsible. The problem is that the ethics of a business is a mixture of the individual sets of ethics. This is why it is important to have good individuals as employees. it is also equally important that when you go to work somewhere that you feel like you share the values of those you work with. Ethic is not just talking about the right thing. It is doing what is the right in every decision that is made. Based on the above observation discuss the impact on society that ethical leaders can make As the world business platform is growing rapidly, more business leaders and are now waking up to the reality of social responsibility and good organizational ethics. The opinion of the society is re-shaping expectations and standards on how leaders should perform with regards to the general public. Injustice around the world is becoming more visible and less acceptable and behavior of leaders is becoming more transparent every day. Leaders now have real incentives when they do the right thing, but they do have disincentives for doing things that are unacceptable in todays world. Leaders show ethical behaviors when they do what is morally right, and good, and when they help to elevate followers moral awareness. Ethical leaders must generate the right conditions and organizational culture for the development of ethical behavior amongst society members. Every community has leaders to look after its interests and protects its rights. However in todays world, many people do not have faith in leaders and hold them responsible for many of their problems. Ethical leaders should be people-oriented and always aware of how their decisions affect others. They serve the society with compassionate interests. This becomes the only way ethical leaders are able to motivate followers and put needs and interest of group before their own. When these leaders act ethically than the people in the society will follow them. The respect and trust the people put in their leaders will lead them to follow the same values that the leaders do. The leaders have a big responsibility on their shoulders when it comes to guiding the society to follow these ethical principles. They act as role models for the society. What they do in their day to day life becomes the corner stone for the followers. Leaders also play an important role in social responsibility.   The keys issues involved are the health and safety of every employee. Great leadership includes establishing health and safety as a value and affirming that safety by allowing employees adequate time to prepare for evacuation. Organizations blossom when leaders take responsibility to ensure that works are performed ethically. Ethical behavior should start at the top level management, so that employees also ensure ethical standards are maintained. However if leaders want to be more effective than they need to have good employees working for them in the first place. These employees should be able to carry on the leaders values and follow the same principles when the leader is not around. They should be people who can be trusted enough to be given such a big responsibility. They should be able to promote right actions to inspire the performance of individuals and the culture as a whole.  They Leaders contribute to the success of the society and influence the choices made by the members and businesses in carrying out day-to-day activities. To conclude, every society needs leaders who take personal responsibility for their decisions. People should be able to trust their leaders and see the difference between good and bad.

Essay --

Preservation and Conservation Methods Preservation is a crucial element in the whole operation of a records programmed. The aim of archival preservation is to prolong the usable life of useful research information in two ways. First, preventive preservation seeks to reduce risks of damage and to slow down the rate of deterioration. This aim is usually accomplished by selecting good quality materials and by providing suitable storage environments and safe handling procedures. Secondly, prescriptive preservation is a means of identifying and treating or copying damaged materials to restore useful access to the information. A variety of methods exist to protect audiovisual materials physically and ensure their stability and security. Environmental controls, the use of quality storage containers and good handling practices will help extend the life of archival materials. 2.6.1 Techniques of preservation Proper Care and Handling of Audio Visual Materials Taking care when handling any collection item is one of the more effective, cost-efficient, and easily achieved preservation measures. General †¢ Wash and thoroughly dry hands before handling A/V materials †¢ Store and handle materials in a clean environment †¢ Keep food and drink away †¢ Do not touch playing surface(s) †¢ Keep playback equipment clean and well maintained †¢ Allow materials from cool storage to acclimate to room temperature before playing back Discs †¢ Handle grooved discs (78s, 45s, LPs, lacquer discs) by the edge and label areas only †¢ Handle optical discs (CDs, DVDs) by the edge and center hole only Magnetic tape (Cassettes, Audio and Video) †¢ Handle by the outer shell only †¢ Do not touch the spools 2.6.2 Storage Audiovisual are made of modern materials that may have inh... ...n general scope within the institutional objectives in supporting the outreach programs aims Exhibition Exhibition Details Nation’s Memoir ï‚ § Exposing the audiences to the interesting places, important events and people both the ordinary one and includes the extraordinary who have take part in developing the country into what it is now – a proud nation. The Galleria ï‚ § It has been planned to a suitable period for viewing to our audiences to be on our daily opening hours and open for reservation for particular purpose of visit. The Galleria included several Malaysia’s valued audiovisual records and archives on our collection. It could be referred to be ‘birth certificates’ for our beloved country. The related items in The Galleria may covers subject ranging from cultural heritage, historical places, and other appropriate items to be showed to the audiences.

Cultural Influences on Social Cognition and Behavior Essay

There was once a time when I met a Filipino family in the park. The most famous hospitality of Filipinos was showed to me. They have invited me to join them for snacks — something that a typical American would not do even to fellow American. However, these people became friendly to me even though they know that I am not among their own race. I was able to identify with them because I have experienced the real essence of having a family, something I am not seeing in most American families. With that encounter, they have thought me to also be concern with other people. More than that, they have showed me that we can unite amid cultural differences and that we can trust people even at the first meeting; and through that we can have connections. I found this influences to easy come to my senses and being because I have been observing families in my own community and I have not found anyone or family as hospitable as them. That is because I was able to identify with them. I was vulnerable because it was my first time to experience such hospitability from other people who possess different culture other than what I have been practicing. Americans have become very individualistic and have failed to show such culture to other people even in our own kind. I was able to process my thoughts and feelings in terms of dealing with other cultures because I have experienced another culture first hand, more than what I can read from books and periodicals. What I have experienced and learned through the encounter is definitely a positive influence. Because their culture has encouraged me to learn more about other cultures and practices of other people and they have helped me understand the differences of cultures. Reference Huitt, W. (2006). Social cognition. Educational Psychology Interactive. Valdosta, GA: Valdosta State University. Retrieved May 13, 2008 from http://chiron. valdosta. edu/whuitt/col/soccog/soccog. html.

Kitsch Internet Cafe Business Plan

KITSCH INTERNET CAFE Table of Contents 1. Executive Summary5 1. 1 Objectives6 1. 2 Keys to Success6 1. 3 Mission6 1. 4 Risks7 2. Company Description7 2. 1 Company Ownership7 2. 2 Start-up Summary8 2. 3 Company Locations and Facilities10 3. Description of Services11 3. 1 Competitive Comparison11 3. 2 Service Description11 3. 3 Fulfillment12 3. 4 Technology12 3. 5 Future Services12 4. Market Analysis13 4. 1 Target Market Segment Strategy13 4. 1. 1 Market Trends13 4. 1. 2 Market Needs13 4. 2 Market Segmentation14 4. Service Business Analysis15 4. 3. 1 Competition and Buying Patterns16 4. 3. 2 Business Participants16 4. 3. 3 Distributing a Service17 5. Marketing Strategy18 5. 1 Strategy Pyramid18 5. 1. 1 Attract Power Internet Users18 5. 1. 2 Social Hub18 5. 1. 3 Attract Novice Internet Users19 5. 2 SWOT Analysis19 5. 2. 1 Weaknesses20 5. 2. 2 Opportunities20 5. 2. 3 Threats20 5. 2. 4 Strengths21 5. 3 Competitive Edge21 5. 4 Marketing Strategy21 5. 4. 1 Pricing Strategy22 5. 4. 2 Promoti on Strategy22 5. 5 Sales Strategy23 5. 5. 1 Sales Forecast23 . 6 Milestones26 6. Operating Plan27 6. 1 Personnel Plan27 7. Financial Plan29 7. 1 Start-up Funding29 7. 2 Important Assumptions31 7. 3 Key Financial Indicators32 7. 4 Break-even Analysis32 7. 5 Projected Profit and Loss33 7. 6 Projected Cash Flow37 7. 7 Projected Balance Sheet40 7. 8 Business Ratios42 8. Appendix46 Kitsch Internet Cafe Executive Summary Kitsch, unlike a typical cafe, will provide a unique forum for communication and entertainment through the medium of the Internet. Kitsch is the answer to an increasing demand. The public wants: (1) access to the methods of communication and volumes of information now available on the Internet, and (2) access at a cost they can afford and in such a way that they aren't socially, economically, or politically isolated. Kitsch’s goal is to provide the community with a social, educational, entertaining, atmosphere for worldwide communication. Highlights [pic] 1. 1 Objectives Kitsch’s objectives for the first three years of operation include: †¢ The creation of a unique, upscale, innovative environment that will differentiate Kitsch from local coffee houses. Educating the community on what the Internet has to offer. †¢ The formation of an environment that will bring people with diverse interests and backgrounds together in a common forum. †¢ Good coffee and bakery items at a reasonable price. †¢ Affordable access to the resources of the Internet and other online services. 1. 2 Keys to Success The keys to the success for Kitsch a re: †¢ The creation of a unique, innovative, upscale atmosphere that will differentiate Kitsch from other local coffee shops and future Internet cafes. †¢ The establishment of Kitsch as a community hub for socialization and entertainment. The creation of an environment that won't intimidate the novice user. Kitsch will position itself as an educational resource for individuals wishing to learn about the benefits the Internet has to offer. †¢ Great coffee and bakery items. 1. 3 Mission As the popularity of the Internet continues to grow at an exponential rate, easy and affordable access  is quickly becoming a necessity of life. Kitsch provides communities with the ability to access the Internet, enjoy a cup of coffee, and share Internet experiences in a comfortable environment. People of all ages and backgrounds will come to enjoy the unique, upscale, educational, and innovative environment that Kitsch provides. 1. 4 Risks The risks involved with starting Kitsch were: †¢ Will there be a demand for the services offered by Kitsch in Nicosia? †¢ Will the popularity of the Internet continue to grow, or is the Internet a fad? †¢ Will individuals be willing to pay for the service Kitsch offers? †¢ Will the cost of accessing the Internet from home drop so significantly that there will not be a market for Internet Cafes such as Kitsch? Company Description Kitsch, is located at the area of Agioi Omologites at 15 Chiou Street, offering the community easy and affordable access to the Internet. Kitsch is providing full access to email, WWW, FTP, Usenet and other Internet applications such as Telnet and Gopher. Kitsch will also provide customers with a unique and innovative environment for enjoying great coffee, specialty beverages, and bakery items. Kitsch is appealing to individuals of all ages and backgrounds. The instructional Internet classes, and the helpful staff that Kitsch provides, will appeal to the audience that does not associate themselves with the computer age. This educational aspect attracts younger and elderly members of the community who are rapidly gaining interest in the unique resources that online communications have to offer. The downtown location will provide business people with convenient access to their morning coffee and online needs. 2. 1 Company Ownership Kitsch is owned by M & T Corporation with the manager Loizos Loizou to possess the main share (80%). 2. 2 Start-up Summary Kitsch’s start-up costs covered coffee making equipment, site renovation and modification, capital to cover losses in the first year, and the communications equipment necessary to get its customers online. The communications equipment necessary to provide Kitsch’s customers with a high-speed connection to the Internet and the services it has to offer make up a large portion of the start-up costs. These costs included the computer terminals and all costs associated with their set-up. Costs were also designated for the purchase of two laser printers and a scanner. Additional to those, one espresso machine, an automatic coffee grinder, and minor additional equipment will be purchased from Petersons ltd. The building at 15 Chiou Street required funds for renovation and modification. A single estimated figure was allocated for this purpose. The renovation/modification cost estimated included the costs associated with preparing the building for opening business. Start-up Expense Details: †¢ 11 computers = â‚ ¬22,000 †¢ two printers = â‚ ¬1,000 †¢ one scanner = â‚ ¬500 †¢ software = â‚ ¬810 †¢ one espresso machine = â‚ ¬10,700 †¢ one automatic espresso grinder = â‚ ¬795 †¢ other fixtures and remodeling: o two coffee/food preparation counters = â‚ ¬1,000 o one information display counter = â‚ ¬1,000 o one drinking/eating counter = â‚ ¬500 o sixteen stools = â‚ ¬1,600 o six computer desks w/chairs = â‚ ¬2,400 o stationery goods = â‚ ¬500 o two telephones = â‚ ¬200 o decoration expense = â‚ ¬13,000 Start-up | | | | |Requirements | | | | | |Start-up Expenses | | |Legal |â‚ ¬500 | |Stationery etc. â‚ ¬500 | |Brochures |â‚ ¬500 | |Consultants |â‚ ¬2,000 | |Insurance |â‚ ¬700 | |Rent |â‚ ¬1,445 | |4-group Automatic Coffee Machine |â‚ ¬10,700 |Bean Grinder |â‚ ¬795 | |Computer Systems (x11), Software, Printer, Scanner |â‚ ¬24,310 | |Communication Lines |â‚ ¬840 | |Fixtures/Remodel |â‚ ¬20,000 | |Total Start-up Expenses |â‚ ¬62,290 | | | | |Start-up Assets | | |Cash Required |â‚ ¬24,000 | |Start-up Inventory |â‚ ¬2,000 | |Other Current Assets |â‚ ¬0 | |Long-term Assets |â‚ ¬0 | |Total Assets |â‚ ¬26,000 | | | | |Total Requirements |â‚ ¬88,290 | 2. 3 Company Locations and Facilities A site has been chosen at 15 Chiou Street in Agioi Omologites. This site was chosen for various reasons, including: †¢ Proximity to the downtown business community. †¢ Proximity to trendy, upscale restaurants such as Bagatelle, Steak & Co, Paragadi fish restaurant, Aperitivo Jet Set and others †¢ Parking availability. †¢ Low cost rent – â‚ ¬. 85 per square foot for 1700 square feet. †¢ High visibility. All of these qualities are consistent with Kitsch's goal of providing a central hub of communication and socialization for the Eugene community. Description of Services Kitsch is providing full access to email, WWW, FTP, Usenet and other Internet applications such as Telnet and Gopher. Printing, scanning, and introductory courses to the Internet are also available to the customer. Kitsch also provides customers with a unique and innovative environment for enjoying great coffee, specialty beverages, and bakery items. 3. 1 Competitive Comparison Kitsch is the first Internet cafe in Agioi Omologites. Kitsch differentiates itself from the strictly-coffee cafes in Agioi Omologites by providing its customers with Internet and computing services. 3. 2 Service Description Kitsch provides its customers with full access to the Internet and common computer software and hardware. Some of the Internet and computing services available to Kitsch’s customers are listed below: †¢ Access to external POP3 and IMAP email accounts. †¢ Customers can sign up for a Kitsch email account. This account will be managed by Kitsch servers and accessible from computer systems outside the Kitsch network. †¢ FTP, Telnet, Gopher, and other popular Internet utilities will be available. †¢ Access to Netscape, Google Chrome, Mozilla Firefox and Internet Explorer browser. †¢ Access to laser and color printing. †¢ Access to popular software applications like Adobe PhotoShop and Microsoft Office. Kitsch also provides its customers with access to introductory Internet and email classes. These classes will be held in the afternoon and late in the evening. By providing these classes, Kitsch builds a client base familiar with its services. The computers, Internet access, and classes wouldn't mean half as much if taken out of the environment Kitsch provides. Good coffee, specialty drinks, bakery goods, and a comfortable environment provide Kitsch customers with a home away from home. Kitsch is a place to enjoy the benefits of computing in a comfortable and well-kept environment. 3. 3 Fulfillment Kitsch obtains computer support and Internet access from Logitech Computers located in Agioi Omologites. CYTA and CYTACOM Solutions provide the Internet connections and network consulting. Petersons ltd will provide Kitsch with coffee equipment, bulk coffee, and paper supplies. A contract for the bakery items has not been yet completed. 3. 4 Technology Kitsch invests in high-speed computers to provide its customers with a fast and efficient connection to the Internet. The computers are reliable and fun to work with. Kitsch will continue to upgrade and modify the systems to stay current with communications technology. One of the main attractions associated with Internet cafes, is the state of the art equipment available for use. Not everyone has a Pentium PC in their home or office. 3. 5 Future Services As Kitsch grows, more communications systems will be added. The possibility of additional units has been accounted for in the current floor plan. As the demand for Internet connectivity increases, along with the increase in competition, Kitsch will continue to add new services to keep its customer base coming back for more. Market Analysis Kitsch is faced with the exciting opportunity of being the first-mover in Nicosia’s cyber-cafe market. The consistent popularity of coffee, combined with the growing interest in the Internet, has been proven to be a winning concept in other markets and will produce the same results in Nicosia. 4. 1 Target Market Segment Strategy Kitsch intends to cater to people who want a guided tour on their first spin around the Internet and to experienced users eager to indulge their passion for computers in a social setting. Furthermore, Kitsch is a magnet for local and professionals who desire to work or check their email messages in a friendly atmosphere. These professionals will either use Kitsch's PCs, or plug their notebooks into Internet connections. Kitsch's target market covers a wide range of ages: from members of Generation X who grew up surrounded by computers, to Baby Boomers who have come to the realization that people today cannot afford to ignore computers. 4. 1. 1 Market Trends A market survey was conducted in the Fall of 2007. Key questions were asked of fifty potential customers. Some key findings include: †¢ 35 subjects said they would be willing to pay for access to the Internet. †¢ One euro per hour was the most popular hourly Internet fee at that time. †¢ 24 subjects use the Internet to communicate with others on a regular basis. 4. 1. 2 Market Needs Factors such as current trends, addiction, and historical sales data ensure that the high demand for coffee will remain constant over the next five years. The rapid growth of the Internet and online services, that has been witnessed worldwide, is only the tip of the iceberg. The potential growth of the Internet is enormous, to the point where one day, a computer terminal with an online connection will be as common and necessary as a telephone. This may be 10 or 20 years down the road, but for the next five years, the online service provider market is sure to experience tremendous growth. Being one of the first’s cyber-cafe in Nicosia, Kitsch will enjoy the first-mover advantages of name recognition and customer loyalty. Initially, Kitsch will hold a 100 percent share of the cyber-cafe market in Nicosia. In the next five years, competitors will enter the market. Kitsch has set a goal to maintain greater than a 50 percent market share. 4. 2 Market Segmentation Kitsch's customers can be divided into two groups. The first group is familiar with the Internet and desires a progressive and inviting atmosphere where they can get out of their offices or bedrooms and enjoy a great cup of coffee. The second group is not familiar with the Internet, yet, and is just waiting for the right opportunity to enter the online community. Kitsch’s target market falls anywhere between the ages of 15 and 50. This extremely wide range of ages is due to the fact that both coffee and the Internet appeal to a variety of people. In addition to these two broad categories, Kitsch's target market can be divided into more specific market segments. The majority of these individuals are students and business people. See the Market Analysis chart and table below for more specifics. [pic] Market Analysis | | | | |Year 1 |Year 2 |Year 3 | |Unit Sales | | | | |Coffee- average |12,016 |14,068 |15,475 | |Specialty Drinks- average |6,654 |7,913 |8,705 | |Email Memberships |8,703 |10,505 |11,556 | |Hourly Internet Fees | 38,269 |46,365 |51,002 | |Baked Goods- average |32,673 |42,150 |46,365 | |Total Unit Sales |98,315 |121,001 |133,103 | | | | | |Unit Prices |Year 1 |Year 2 |Year 3 | |Coffee- average |â‚ ¬1. 00 |â‚ ¬1. 00 |â‚ ¬1. 00 | |Specialty Drinks- average |â‚ ¬2. 00 |â‚ ¬2. 00 |â‚ ¬1. 00 | |Email Memberships |â‚ ¬10. 00 |â‚ ¬10. 00 |â‚ ¬10. 00 | |Hourly Internet Fees |â‚ ¬2. 50 |â‚ ¬2. 50 |â‚ ¬2. 50 | |Baked Goods- average |â‚ ¬1. 25 |â‚ ¬1. 25 |â‚ ¬1. 0 | | | | | | | | | | | | | | | | |Sales | | | | |Coffee- average |â‚ ¬12,016 |â‚ ¬14,068 |â‚ ¬15,475 | |Specialty Drinks- average |â‚ ¬13,308 |â‚ ¬15,826 |â‚ ¬8,705 | |Email Memberships |â‚ ¬87,030 |â‚ ¬105,050 |â‚ ¬115,560 | |Hourly Internet Fees |â‚ ¬95,673 |â‚ ¬115,913 |â‚ ¬127,505 | |Baked Goods- average |â‚ ¬40,841 |â‚ ¬52,688 |â‚ ¬46,365 | |Total Sales |â‚ ¬248,868 |â‚ ¬303,544 |â‚ ¬313,610 | | | | | | |Direct Unit Costs |Year 1 |Year 2 |Year 3 | |Coffee- average |â‚ ¬0. 5 |â‚ ¬0. 25 |â‚ ¬0. 25 | |Specialty Drinks- average |â‚ ¬0. 50 |â‚ ¬0. 50 |â‚ ¬0. 25 | |Email Memberships |â‚ ¬2. 50 |â‚ ¬2. 50 |â‚ ¬2. 50 | |Hourly Internet Fees |â‚ ¬0. 63 |â‚ ¬0. 63 |â‚ ¬0. 63 | |Baked Goods- average |â‚ ¬0. 31 |â‚ ¬0. 31 |â‚ ¬0. 25 | | | | | | | | | | |Direct Cost of Sales | | | | |Coffee- average |â‚ ¬3,004 |â‚ ¬3,517 |â‚ ¬3,869 | |Specialty Drinks- average |â‚ ¬3,327 |â‚ ¬3,957 |â‚ ¬2,176 | |Email Memberships |â‚ ¬21,758 |â‚ ¬26,263 |â‚ ¬28,890 | |Hourly Internet Fees |â‚ ¬23,918 |â‚ ¬28,978 |â‚ ¬31,876 | |Baked Goods- average |â‚ ¬10,210 |â‚ ¬13,172 |â‚ ¬11,591 | |Subtotal Direct Cost of Sales |â‚ ¬62,217 |â‚ ¬75,886 |â‚ ¬78,403 | 5. 6 Milestones The Kitsch management team has established some basic milestones to keep the business plan priorities in place. Responsibility for implementation falls on the shoulders of Loizos Loizou. This Milestones Table below will be updated as the year progresses using the actual tables. New milestones added as the first year of operations commences. [pic] 6. Operating Plan Kitsch is owned and operated by Mr. Loizos Loizou. The company, being small in nature, requires a simple organizational structure. Implementation of this organizational form calls for the owner, Mr. Loizou, to make all of the major management decisions in addition to monitoring all other business activities. 6. 1 Personnel Plan The staff will consist of six part-time employees working thirty hours a week at â‚ ¬5. 50 per hour. In addition, one full-time technician (who is more technologically oriented to handle minor terminal repairs/inquiries) will be employed to work forty hours a week at â‚ ¬10. 00 per hour. The two private investors, Andreas Augoustinos and Panagiotis Metaxas will not be included in management decisions. This simple structure provides a great deal of flexibility and allows communication to disperse quickly and directly. Because of these characteristics, there are few coordination problems seen at Kitsch that are common within larger organizational chains. This strategy will enable Kitsch to react quickly to changes in the market. Personnel Plan | | |Year 1 |Year 2 |Year 3 | |Owner |â‚ ¬24,000 |â‚ ¬26,400 |â‚ ¬29,040 | |Part Time 1 |â‚ ¬7,920 |â‚ ¬7,920 |â‚ ¬7,920 | |Part Time 2 |â‚ ¬7,920 |â‚ ¬7,92 |â‚ ¬7,920 | |Part Time 3 |â‚ ¬7,920 |â‚ ¬7,920 |à ¢â€š ¬7,920 | |Part Time 4 |â‚ ¬7,920 |â‚ ¬7,920 |â‚ ¬7,920 | |Part Time 5 |â‚ ¬7,920 |â‚ ¬7,920 |â‚ ¬7,920 | |Part Time 6 |â‚ ¬3,960 |â‚ ¬7,920 |â‚ ¬7,920 | |Technician |â‚ ¬21,731 |â‚ ¬23,904 |â‚ ¬26,294 | |Manager |â‚ ¬4,000 |â‚ ¬24,000 |â‚ ¬26,400 | |Total People |9 |9 |9 | | | | | | |Total Payroll |â‚ ¬93 |â‚ ¬121,824 |â‚ ¬129,254 | | |291 | | | 7. Financial Plan The following sections lay out the details of our financial plan for the next three years. 7. 1 Start-up Funding This business plan is prepared to obtain financing in the amount of â‚ ¬24,000. The supplemental financing is required to begin work on site preparation and modifications, equipment purchases, and to cover expenses in the first year of operations. Additional financing has already been secured as follows: †¢ â‚ ¬19,000 of personal savings from owner Loizos Loizou †¢ â‚ ¬36,000 from two investors †¢ and â‚ ¬9,290 in the form of sh ort-term loans Start-up Funding | | | | |Start-up Expenses to Fund |â‚ ¬62,290 | |Start-up Assets to Fund |â‚ ¬26,000 | |Total Funding Required |â‚ ¬88,290 | | | | |Assets | | |Non-cash Assets from Start-up |â‚ ¬2,000 | |Cash Requirements from Start-up |â‚ ¬24,000 | |Additional Cash Raised |â‚ ¬0 | |Cash Balance on Starting Date |â‚ ¬24,000 | |Total Assets |â‚ ¬26,000 | |Liabilities and Capital | | | | | |Liabilities | | |Current Borrowing |â‚ ¬9,290 | |Long-term Liabilities |â‚ ¬24,000 | |Accounts Payable (Outstanding Bills) |â‚ ¬0 | |Other Current Liabilities (interest-free) |â‚ ¬0 | |Total Liabilities |â‚ ¬33,290 | | | | |Capital | | |Planned Investment | | |Loizos Loizou |â‚ ¬43,000 | |Private Investor |â‚ ¬12,000 | |Additional Investment Requirement |â‚ ¬0 | |Total Planned Investment |â‚ ¬55,000 | |Loss at Start-up (Start-up Expenses) |(â‚ ¬62,290) | |Total Capital |(â‚ ¬7,290) | |Total Capital and Liabilities |â‚ ¬26,000 | |Total Funding |â‚ ¬88,290 | 7. 2 Important Assumptions Basic assumptions  are presented in the table below. General Assumptions | | |Year 1 |Year 2 |Year 3 | |Plan Month |1 |2 |3 | |Current Interest Rate |8. 00% |8. 00% |8. 00% | |Long-term Interest Rate |10. 00% |10. 00% |10. 00% | |Tax Rate |30. 00% |30. 00% |30. 00% | |Other |0 |0 |0 | 7. 3 Key Financial Indicators Important benchmark data is presented in the chart below. Benchmarks [pic] 7. 4 Break-even Analysis Break-even data is presented in the chart and table below. [pic] Break-even Analysis | | | | |Monthly Units Break-even |7,294 | |Monthly Revenue Break-even |â‚ ¬18,462 | | | | |Assumptions: | | |Average Per-Unit Revenue |â‚ ¬2. 53 | |Average Per-Unit Variable Cost |â‚ ¬0. 63 | |Estimated Monthly Fixed Cost |â‚ ¬13,847 | 7. 5 Projected Profit and Loss Payroll Expense: The founder of Kitsch, Loizos Loizou, will receive a salary of â‚ ¬24,000 in year one, â‚ ¬26,400 in year two, and â‚ ¬29,040 in year three. Kitsch intends to hired six part-time employees by the end of year one at â‚ ¬5. 75/hour and a full-time technician at â‚ ¬10. 00/hour. Rent Expense: Kitsch is leasing a 1700 square foot facility at â‚ ¬. 85/sq. oot. The lease agreement Kitsch signed specifies that we pay â‚ ¬2,000/month for a total of 36 months. At the end of the third year, the lease is open for negotiations and Kitsch may or may not re-sign the lease depending on the demands of the lessor. Utilities Expense: As stated i n the contract, the lessor is responsible for the payment of utilities including gas, garbage disposal, and real estate taxes. The only utilities expense that Kitsch must pay is the phone bill generated by fifteen phone lines; thirteen will be dedicated to modems and two for business purposes. The basic monthly service charge for each line provided by CYTA is â‚ ¬17. 29. The 13 lines used to connect the modems will make local calls to the network provided by CYTACOM Solutions resulting in a monthly charge of â‚ ¬224. 77. The two additional lines used for business communication will cost â‚ ¬34. 58/month plus long distance fees. Kitsch assumes that it will not make more than â‚ ¬40. 00/month in long distance calls. Therefore, the total cost associated with the two business lines is estimated at â‚ ¬74. 58/month and the total phone expense at â‚ ¬299. 35/month. In addition, there will be an additional utility expense of â‚ ¬800 for estimated EWEB bills. Marketing Expense: Kitsch allocated â‚ ¬33,750 for promotional expenses over the first year. These were used for advertising in local newspapers in order to build consumer awareness. For additional information, please refer to section 5. 0 of the business plan. Insurance Expense: Kitsch has allocated â‚ ¬1,440 for insurance for the first year. As revenue increases in the second and third year of business, Kitsch intends to invest more money for additional insurance coverage. Depreciation: In depreciating our capital equipment, Kitsch used the Modified Accelerated Cost Recovery Method. We depreciated our computers over a five-year time period and our fixtures over seven years. Taxes: Kitsch is not taxed. However, there is a 15% payroll burden. Detailed Profit and Loss data is presented in the table below. [pic] [pic] [pic] Pro Forma Profit and Loss | | |Year 1 |Year 2 |Year 3 | |Sales |â‚ ¬248,868 |â‚ ¬303,544 |â‚ ¬313,610 | |Direct Cost of Sales |â‚ ¬62,217 |â‚ ¬75,886 |â‚ ¬78,403 | |Other Costs of Sales |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 | |Total Cost of Sa les |â‚ ¬62,217 |â‚ ¬75,886 |â‚ ¬78,403 | | | | | | |Gross Margin |â‚ ¬186,651 |â‚ ¬227,658 |â‚ ¬235,208 | |Gross Margin % |75. 00% |75. 00% |75. 0% | | | | | | | | | | | |Expenses | | | | |Payroll |â‚ ¬93,291 |â‚ ¬121,824 |â‚ ¬129,254 | |Marketing/Promotion |â‚ ¬33,750 |â‚ ¬40,000 |â‚ ¬43,000 | |Depreciation |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 | |Rent |â‚ ¬24,000 |â‚ ¬24,000 |â‚ ¬24,000 | |Utilities |â‚ ¬9,120 |â‚ ¬9,120 |â‚ ¬9,120 | |Insurance |â‚ ¬6,000 |â‚ ¬6,000 |â‚ ¬6,000 | |Payroll Taxes |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 | |Other â‚ ¬0 |â‚ ¬0 |â‚ ¬0 | |Total Operating Expenses |â‚ ¬166,161 |â‚ ¬200,944 |â‚ ¬211,374 | | | | | | |Profit Before Interest and Taxes |â‚ ¬20,490 |â‚ ¬26,714 |â‚ ¬23,834 | |EBITDA |â‚ ¬20,490 |â‚ ¬26,714 |â‚ ¬23,834 | |Interest Expense |â‚ ¬2,325 |â‚ ¬1,470 |â‚ ¬1,100 | |Taxes Incurred |â‚ ¬5,450 |â‚ ¬7,573 |â‚ ¬6,820 | | | | | | |Net Profit |â⠀š ¬12,716 |â‚ ¬17,671 |â‚ ¬15,913 | |Net Profit/Sales |5. 11% |5. 82% |5. 07% | 7. 6 Cash Flow Cash flow data is presented in the chart and table below. Accounts Payable: Kitsch acquired a â‚ ¬24,000 loan from a bank at a 10% interest rate. The loan paid back at â‚ ¬800/month over the next three years. The â‚ ¬9,290 short term loan paid back at a rate of 8%. Cash (000 â‚ ¬) [pic] |Pro Forma Cash Flow | | |Year 1 |Year 2 |Year 3 | |Cash Received | | | | | | | | | |Cash from Operations | | | | |Cash Sales |â‚ ¬248,868 |â‚ ¬303,544 |â‚ ¬313,610 |Subtotal Cash from Operations |â‚ ¬248,868 |â‚ ¬303,544 |â‚ ¬313,610 | | | | | | |Additional Cash Received | | | | |Sales Tax, VAT, Received |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 | |New Current Borrowing |â‚ ¬2,000 |â‚ ¬5,000 |â‚ ¬0 | |New Other Liabilities (interest-free) |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 | |New Long-term Liabilities |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 | |Sales of Other Current Assets |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 | |Sales of Long-term Assets |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 | |New Investment Received |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 | |Subtotal Cash Received |â‚ ¬250,868 |â‚ ¬308,544 |â‚ ¬313,610 | | | | | | |Expenditures |Year 1 |Year 2 |Year 3 | | | | | | |Expenditures from Operations | | | | |Cash Spendi ng |â‚ ¬93,291 |â‚ ¬121,824 |â‚ ¬129,254 | |Bill Payments |â‚ ¬133,870 |â‚ ¬165,945 |â‚ ¬168,467 | |Subtotal Spent on Operations |â‚ ¬227,161 |â‚ ¬287,769 |â‚ ¬297,721 | | | | | | |Additional Cash Spent | | | | |Sales Tax, VAT, Paid Out |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 | |Principal Repayment of Current Borrowing |â‚ ¬9,290 |â‚ ¬2,000 |â‚ ¬0 | |Other Liabilities Principal Repayment |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 | |Long-term Liabilities Principal Repayment |â‚ ¬9,600 |â‚ ¬5,000 |â‚ ¬4,800 | |Purchase Other Current Assets |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 | |Purchase Long-term Assets |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 | |Dividends |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 | |Subtotal Cash Spent |â‚ ¬246,051 |â‚ ¬294,769 |â‚ ¬302,521 | | | | | | |Net Cash Flow |â‚ ¬4,817 |â‚ ¬13,775 |â‚ ¬11,089 | |Cash Balance |â‚ ¬28,817 |â‚ ¬42,592 |â‚ ¬53,681 | 7. 7 Projected Balance Sheet Our projected balance sheet is presented in the table below. Pro Forma Balance Sheet | | |Year 1 |Year 2 |Year 3 | |Assets | | | | | | | | | |Current Assets | | | | |Cash |â‚ ¬28,817 |â‚ ¬42,592 |â‚ ¬53,681 | |Inventory |â‚ ¬6,980 |â‚ ¬8,514 |â‚ ¬8,796 | |Other Current Assets |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 | |Total Current Assets |â‚ ¬35,797 |â‚ ¬51,106 |â‚ ¬62,478 | | | | | | |Long-term Assets | | | | |Long-term Assets |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 | |Accumulated Depreciation |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 | |Total Long-term Assets |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 | |Total Assets |â‚ ¬35,797 |â‚ ¬51,106 |â‚ ¬62,478 | | | | | | |Liabilities and Capital |Year 1 Year 2 |Year 3 | | | | | | |Current Liabilities | | | | |Accounts Payable |â‚ ¬13,972 |â‚ ¬13,610 |â‚ ¬13,868 | |Current Borrowing |â‚ ¬2,000 |â‚ ¬5,000 |â‚ ¬5,000 | |Other Current Liabilities |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 | |Subtotal Current Liabilities |â‚ ¬15,972 |â‚ ¬18,610 |â‚ ¬18,868 | | | | | | |Long-term Liabilities |â‚ ¬14,400 |â‚ ¬9,400 |â‚ ¬4,600 | |Total Liabilities |â‚ ¬30,372 |â‚ ¬28,010 |â‚ ¬23,468 | | | | | | |Paid-in Capital |â‚ ¬55,000 |â‚ ¬55,000 |â‚ ¬55,000 | |Retained Earnings |(â‚ ¬62,290) |(â‚ ¬49,574) |(â‚ ¬31,904) | |Earnings |â‚ ¬12,716 |â‚ ¬17,671 |â‚ ¬15,913 | |Total Capital |â‚ ¬5,426 |â‚ ¬23,096 |â‚ ¬39,010 | |Total Liabilities and Capital |â‚ ¬35,797 |â‚ ¬51,106 |â‚ ¬62,478 | | | | | | |Net Worth |â‚ ¬5,426 |â‚ ¬23,096 |â‚ ¬39,010 | 7. 8 Business Ratios The Standard Industrial Classification (SIC) Code for the Internet Service Provider industry is â€Å"Remote data base information retrieval† 7375. 9903. We used the report for â€Å"Information retrieval services† 7375 to generate  the industry profile. As we are also a food cafe we could have used the ratios based on SIC classification 5812, â€Å"Eating places†. The combined nature of Kitsch Cafe makes our ratios a blend of the two i ndustries. Ratio Analysis | | |Year 1 |Year 2 |Year 3 |Industry Profile| |Sales Growth |0. 00% |21. 97% |3. 32% |0. 90% | | | | | | | |Percent of Total Assets | | | | | |Inventory |19. 50% |16. 66% |14. 08% |2. 17% | |Other Current Assets |0. 00% |0. 00% |0. 00% |84. 8% | |Total Current Assets |100. 00% |100. 00% |100. 00% |86. 95% | |Long-term Assets |0. 00% |0. 00% |0. 00% |13. 05% | |Total Assets |100. 00% |100. 00% |100. 00% |100. 00% | | | | | | | |Current Liabilities |44. 62% |36. 41% |30. 20% |28. 33% | |Long-term Liabilities |40. 23% |18. 39% |7. 36% |16. 21% | |Total Liabilities |84. 84% |54. 1% |37. 56% |44. 54% | |Net Worth |15. 16% |45. 19% |62. 44% |55. 46% | | | | | | | |Percent of Sales | | | | | |Sales |100. 00% |100. 00% |100. 00% |100. 00% | |Gross Margin |75. 00% |75. 00% |75. 00% |100. 00% | |Selling, General & Administrative |69. 89% |69. 18% |69. 93% |79. 0% | |Expenses | | | | | |Advertising Expenses |0. 00% |0. 00% |0. 00% |1. 01% | |Profit Before Interest an d Taxes |8. 23% |8. 80% |7. 60% |1. 62% | | | | | | | |Main Ratios | | | | | |Current |2. 24 |2. 75 |3. 31 |0. 00 | |Quick |1. 80 |2. 29 |2. 85 |0. 0 | |Total Debt to Total Assets |84. 84% |54. 81% |37. 56% |0. 00% | |Pre-tax Return on Net Worth |334. 80% |109. 30% |58. 28% |0. 00% | |Pre-tax Return on Assets |50. 74% |49. 40% |36. 39% |0. 00% | | | | | | | |Additional Ratios |Year 1 |Year 2 |Year 3 | | |Net Profit Margin |5. 11% |5. 82% |5. 07% |n. a | |Return on Equity |234. 36% |76. 1% |40. 79% |n. a | | | | | | | |Activity Ratios | | | | | |Inventory Turnover |12. 00 |9. 80 |9. 06 |n. a | |Accounts Payable Turnover |10. 58 |12. 17 |12. 17 |n. a | |Payment Days |27 |30 |30 |n. a | |Total Asset Turnover |6. 95 |5. 94 |5. 02 |n. | | | | | | | |Debt Ratios | | | | | |Debt to Net Worth |5. 60 |1. 21 |0. 60 |n. a | |Current Liab. to Liab. |0. 53 |0. 66 |0. 80 |n. a | | | | | | | |Liquidity Ratios | | | | | |Net Working Capital |â‚ ¬19,826 |â‚ ¬32,496 |â‚ ¬43,610 |n. | |Intere st Coverage |8. 81 |18. 17 |21. 67 |n. a | | | | | | | |Additional Ratios | | | | | |Assets to Sales |0. 14 |0. 17 |0. 20 |n. a | |Current Debt/Total Assets |45% |36% |30% |n. a | |Acid Test |1. 80 |2. 29 |2. 85 |n. a | |Sales/Net Worth |45. 87 |13. 14 |8. 4 |n. a | |Dividend Payout |0. 00 |0. 00 |0. 00 |n. a | 8. Appendix |Sales | | | | | | | | | | | |Month 1 |Month 2 |Month 3 |Month 4 |Month 5 |Month 6 |Month 7 |Month 8 |Month 9 |Month 10 |Month 11 |Month 12 | |Assets |Starting Balances | | | | | | | | | | | | | | | | | | | | | | | | | | | | |Current Assets | | | | | | | | | | | | | | |Cash |â‚ ¬24,00 |â‚ ¬23,026 |â‚ ¬18,600 |â‚ ¬13,589 |â‚ ¬16,879 |â‚ ¬16,066 |â‚ ¬19,557 |â‚ ¬20,657 |â‚ ¬22,308 |â‚ ¬24,307 |â‚ ¬26,675 |â‚ ¬27,415 |â‚ ¬28,817 | |Inventory |â‚ ¬2,000 |â‚ ¬1,900 |â‚ ¬2,683 |â‚ ¬3,106 |â‚ ¬5,203 |â‚ ¬5,403 |â‚ ¬5,614 |â‚ ¬5,819 |â‚ ¬6,034 |â‚ ¬6,256 |â‚ ¬6,490 |â‚ ¬6,730 |â‚ ¬6,980 | |O ther Current Assets |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 | |Total Current Assets |â‚ ¬26,00 |â‚ ¬24,926 |â‚ ¬21,282 |â‚ ¬16,696 |â‚ ¬22,082 |â‚ ¬21,469 |â‚ ¬25,170 |â‚ ¬26,476 |â‚ ¬28,342 |â‚ ¬30,562 |â‚ ¬33,165 |â‚ ¬34,145 |â‚ ¬35,797 | | | | | | | | | | | | | | | | |Long-term Assets | | | | | | | | | | | | | | |Long-term Assets |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 | |Accumulated Depreciation |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 | |Total Long-term Assets |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 | |Total Assets |â‚ ¬26,00 |â‚ ¬24,926 |â‚ ¬21,282 |â‚ ¬16,696 |â‚ ¬22,082 |â‚ ¬21,469 |â‚ ¬25,170 |â‚ ¬26,476 |â‚ ¬28,342 |â‚ ¬30,562 |â‚ ¬33,165 |â‚ ¬34,145 |â‚ ¬35,797 | | | | | | | | | | | | | | | | |Liabilities and Capital | |Month 1 |Month 2 |Month 3 |Month 4 |Month 5 |Month 6 |Month 7 |Month 8 |Month 9 |Month 10 |Month 11 |Month 12 | | | | | | | | | | | | | | | | |Current Liabilities | | | | | | | | | | | | | | |Accounts Payable |â‚ ¬0 |â‚ ¬6,503 |â‚ ¬8,785 |â‚ ¬8,701 |â‚ ¬13,654 |â‚ ¬12,180 |â‚ ¬12,578 |â‚ ¬12,709 |â‚ ¬13,055 â‚ ¬13,410 |â‚ ¬13,786 |â‚ ¬13,581 |â‚ ¬13,972 | |Current Borrowing |â‚ ¬9,290 |â‚ ¬8,540 |â‚ ¬7,790 |â‚ ¬7,040 |â‚ ¬6,290 |â‚ ¬5,540 |â‚ ¬6,790 |â‚ ¬6,040 |â‚ ¬5,290 |â‚ ¬4,540 |â‚ ¬3,790 |â‚ ¬3,040 |â‚ ¬2,000 | |Other Current Liabilities |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 |â‚ ¬0 | |Subtotal Current Liabilities |â‚ ¬9,290 |â‚ ¬15,04 3 |â‚ ¬16,575 |â‚ ¬15,741 |â‚ ¬19,944 |â‚ ¬17,720 |â‚ ¬19,368 |â‚ ¬18,749 |â‚ ¬18,345 |â‚ ¬17,950 |â‚ ¬17,576 |â‚ ¬16,621 |â‚ ¬15,972 | | | | | | | | | | | | | | | | |Long-term Liabilities |â‚ ¬24,00 |â‚ ¬23,200 |â‚ ¬22,400 |â‚ ¬21,600 |â‚ ¬20,800 |â‚ ¬20,000 |â‚ ¬19,200 |â‚ ¬18,400 |â‚ ¬17,600 |â‚ ¬16,800 |â‚ ¬16,000 |â‚ ¬15,200 |â‚ ¬14,400 | |Total Liabilities |â‚ ¬33,29 |â‚ ¬38,243 |â‚ ¬38,975 |â‚ ¬37,341 |â‚ ¬40,744 |â‚ ¬37,720 |â‚ ¬38,568 |â‚ ¬37,149 |â‚ ¬35,945 |â‚ ¬34,750 |â‚ ¬33,576 |â‚ ¬31,821 |â‚ ¬30,372 | | | | | | | | | | | | | | | | |Paid-in Capital |â‚ ¬55 |â‚ ¬55 |â‚ ¬55 |â‚ ¬55 |â‚ ¬55 |â‚ ¬55 |â‚ ¬55 |â‚ ¬55 |â‚ ¬55 |â‚ ¬55 |â‚ ¬55 |â‚ ¬55 |â‚ ¬55 | |Retained Earnings |â‚ ¬62,29 |â‚ ¬62,29 |â‚ ¬62,29 |â‚ ¬62,29 |â‚ ¬62,29 |â‚ ¬62,29 |â‚ ¬62,29 |â‚ ¬62,29 |â‚ ¬62,29 |â‚ ¬62,29 |â‚ ¬62,29 |â‚ ¬62,29 |â‚ ¬62,29 | |Earnings |â‚ ¬0 |â‚ ¬6,027 |â‚ ¬10,403 |â‚ ¬13,356 |â‚ ¬11,372 |â‚ ¬8,961 |â‚ ¬6,108 |â‚ ¬3,382 |â‚ ¬313 |â‚ ¬3,103 |â‚ ¬6,879 |â‚ ¬9,614 |â‚ ¬12,716 | |Total Capital |â‚ ¬7,290 |â‚ ¬13,317 |â‚ ¬17,693 |â‚ ¬20,646 |â‚ ¬18,66 |â‚ ¬16,251 |â‚ ¬13,398 |â‚ ¬10,672 |â‚ ¬7,603 |â‚ ¬4,187 |â‚ ¬411 |â‚ ¬2,324 |â‚ ¬5,426 | |Total Liabilities and Capital |â‚ ¬26,00 |â‚ ¬24,926 |â‚ ¬21,282 |â‚ ¬16,696 |â‚ ¬22,082 |â‚ ¬21,469 |â‚ ¬25,170 |â‚ ¬26,476 |â‚ ¬28,342 |â‚ ¬30,562 |â‚ ¬33,165 |â‚ ¬34,145 |â‚ ¬35,797 | | | | | | | | | | | | | | | | |Net Worth |â‚ ¬7,290 |â‚ ¬13,317 |â‚ ¬17,693 |â‚ ¬20,646 |â‚ ¬18,662 |â‚ ¬16,251 |â‚ ¬13,398 |â‚ ¬10,672 |â‚ ¬7,603 |â‚ ¬4,187 |â‚ ¬411 |â‚ ¬2,324 |â‚ ¬5,426 | |