Business Planning and Feasibility Assessment Essay

Business Planning and Feasibility Assessment - Essay Example The essential objective market of the dress store will be the visitors of Dammam city. As Dammam is a prime place of interest and numerous visitors from over the world come to Dammam to visit or for business purposes, in this way it will end up being a huge client base for attire store.The optional objective clients will be the occupants of Dammam. The populace in Dammam city is developing quickly and the individuals will in general follow the western culture and style. In this way, soon there will be a lot of interest for chic garments in Dammam city. As there is predetermined number of garments store in Dammam, it will be anything but difficult to draw in huge number of clients. In the main working year, it is assessed that the development of attire store will be moderate and money close by/bank will be sure. The dress store won't sell using a credit card rather it will acknowledge money and a wide range of checks and charge cards. The underlying speculation will be 150000000 SR (S audi Riyal). The expense of land and building is evaluated as 90000000 SR and Machinery will be purchased around 30000000 SR. The assessed cost of Furniture is 15000000 SR. Devaluation will be charged on apparatus and furniture to 8% and 2% per annum. In the primary working year it is assessed that the anticipated deals is 30000000 SR. The Gross Margin is accounted as 30% of the absolute deals. The expense of protection is assessed as 9% of all out gross edge and the selling and appropriation costs are determined as 70000 SR (evaluated figure). As per Saudi Arabia’s charge rate the annual assessment is charged as 20% on income. Fig: 1 Shows Estimated Income Statement of the Clothing Store Income (SR) Expenditure (SR) Sales 30000000 Gross Margin (30% of Sales) 9000000 Expenditure Payroll (9 ? 10000 ? 12) 1080000 Insurance (9% of Gross Margin) 810000 Depreciation on Machinery (8%) 2400000 Depreciation on Furniture (2%) 300000 Selling and Distribution Expenses 70000 Profit Befor e Tax 4640000 Income charge (20%) 928000 Profit After Tax/Net Profit 3712000 Fig: 2 Shows Estimated Financial Statement of One Year of the Clothing Store Liabilities Asset Capital Investment 150000000 Land and Building