Executive Summary2009 had been a really hard twelvemonth where the economic crisis engulfed the universe at an unprecedented gait and left many companies fighting to get by with the challenges brought upon by the fiscal crises. The wake jobs saw many companies confronting uncertainnesss and in some terrible instances, some companies faces bankruptcy. Domestically speech production, gross revenues to our local major clients are slow. These are non unexpected and have arisen chiefly due to cautious disbursement attitudes among our clients. Notwithstanding, we believe that they have farther potency for growing and will endeavor to increase our presence in these markets.United Textiles felt the reverberations excessively where gross revenues orders decreased and net income borders dipped excessively. However, we believe strongly that gross revenues will pick up during the 1st half of 2010.
Presently, we have programs to perforate gross revenues into Australia, Indonesia, Malaysia, South Africa, South Korea and Thailand. We hope to hold a dominant market place in Singapore with over 50 distributer and traders located around the universe in 2015.We expect the tough economic conditions to prevail for some clip. However, we will endeavor to get the better of these challenges and keep our fight during this hard period.
While cost containment ranks high among our list of precedence, we believe that cost nest eggs should non be achieved at the disbursal of merchandise quality. In this respect, we will go on to introduce and polish our merchandises to run into the current tendencies, engineering and demands of our clients while bearing in head the importance of harnessing in costs. At the same clip, we will further cultivate those markets where growing chances exist while reenforcing our presence in the bing markets.Recently, the company has merely signed a contract numbering to about $ 250,000 to provide fabrics. This is one of the biggest orders of all time since the incorporation of the company. Last twelvemonth, we did amalgamate gross revenues of approximately $ 200,000 dollars. Our fiscal projection for Year 1 is a net loss after revenue enhancements of $ 174,000.
Year 2 is projected at a net net income after revenue enhancements of $ 1,019,031. Year 3 is projected at a net net income after revenue enhancements of $ 1,165,987.The $ 1.19 million dollars we are seeking will be used to get down production, packaging, and selling every bit good as for short term capital and overhead demands.
1. Company PROFILE1.1 – IntroductionUnited Textiles Pte Ltd is a locally incorporated company in 2009 and it was founded by Spencer Ng, Glenn Chai and Ngiap Sheng on 1st January 2009. Spencer Ng being the largest stockholder of all has 40 % ownership of the company while Glenn and Ngiap Sheng each ain 30 % . United Textiles Pte Ltd manufactures smart fabrics and is responsible for sale, distribution and direction of fabrics in Singapore retail and merchandiser sector. The Management Team members have got strong backgrounds in both concern and technology surveies.
The possible market for the smart fabrics is really promising. It is estimated at $ 50 million dollars entirely in Singapore. While the market includes some big rivals, the Company strongly believes that it can vie efficaciously because of its high quality development squad, extended contacts with distribution spouses and advanced merchandise thoughts.Spencer Ng, Glenn Chai and Lim Ngiap Sheng are the laminitiss of the company and are once from Unisim, They are ex-classmates and graduated with a First category Bachelor ‘s Degree in Business surveies.
Ngiap Sheng has an extra MBA in biomedical technology in National Technological University of Singapore. They are great buddies during the university yearss and have great passion in going enterpriser. They ever believe that the sky is the bound and failure is portion of success.
They believe in working for oneself and non for others.Since graduating, the three cats work for local SMEs, MNCs every bit good as pubic listed companies in Singapore. However in 2009, taking the chances originating from the new enabling engineerings and applications of smart fabrics, they decided to go enterprisers and started United Textiles Pte Ltd. They viewed it as a aureate chance to perforate into the market. In United Textiles, we have selected the finest stuff for manufacturing/production and some of the benefits of our merchandises are: it protect against any unwellness, act as communicating devices between people and every bit good as environmental friendly. In extra, it besides serves usefulness across to many industries such as in biomedical sectors.The fabric industry is evidently a important subscriber to many national economic sciences which embracing of both little and large-scale operations worldwide.
United Textiles Private Limited is chiefly engaged in the design, production and sale of fabrics. Our corporate office and production is in the Republic of Singapore. We have one-year production capacity of about 1 million paces per twelvemonth.
1.2 – Vision StatementOur vision is to develop into a globally respected fabrics company through quality, invention, velocity, flexibleness, dependability and competitory monetary values. We want to benchmark our production quality to follow with international criterions such as ISO 9001:2000 enfranchisements.1.
3 – Management Valuess and Ethical motivesOur committedness is Customer satisfaction ; we want to keep the best quality from the natural stuff to the finished merchandise and conformity to Laws & A ; Regulations through betterment of systems and processes through uninterrupted procedure of public presentation reappraisals and audits, to the full motivated and trained squad of workers and staff and monitoring of Targets & A ; Aims.Core Valuess1. Excellencewe strive for excellence in functioning our clients. We challenge industry norms with our public presentation.2.
Inventionwe relentlessly search for and make new ways to better our merchandises and services to please our clients.3. Integritywe are just and honest in our traffics with co-workers, concern spouses and clients.4. Our Teamour different positions energise our squad.
We achieve better consequences as a squad than we can separately.5. Developing Our Peopleswe create an environment that attracts and nurtures endowment. Our occupations are more than merely work, they are avenues for our growing.1.4 – Business DescriptionUnlike other fabrics makers, United Textiles select and uses a assortment of natural stuffs such as cotton and wool or other man-made fibers for our fabrication stuffs.
To let our clients to concentrate on pull offing their nucleus concern, we offer document outsourcing services, advanced, digital and network-based solutions, every bit good as strategic consulting services. We provide entire support for a concern ‘s full papers direction demands, runing from print, to document gaining control and transition from paper to digital every bit good as papers archival, retrieval and more.Our concern proposition includes a comprehensive scope of supplies, from forte documents to toner cartridges, many of which are recyclable.At United Textiles, we believe paperss are the indispensable edifice blocks for capturing and sharing cognition. The key to effectual usage of this rational belongings, which in kernel is the lifeblood of an administration, lies in uniting document direction and information engineerings. Knowledge workers must be able to utilize webs and the Internet easy to hive away, manage, portion and print paperss whenever and wheresoever required.2.
Selling & A ; SALES2.1 – Relevant Market Trends2.1.1 Climatic ChangeOne of the relevant market tendencies is get bying with clime alteration ( utmost conditions conditions ) . Climatic alteration refers to more frequent bosom moving ridges, cold, storms, inundations and drouths. This climatic alteration besides creates an impending demand to get by with utmost conditions conditions and rapidly accommodate to altering clime conditions, chiefly through temperature control.An illustration would be in the instance of PCM, stage alteration stuffs which are already being used in the Beijing Olympics Nike pre-cool waistcoat. Some advanced merchandises has besides indulged in utilizing adiabatic enlargement of tight air to maintain people cool in highly hot conditions and unite neoprene with frozen gels to make cold compaction therapy to cut down nucleus temperature quickly.
2.1.2 Energy Scarcity & A ; Recycling and Conversation.Manufacturers whom uses huge sum of energy such as oil across globally are seeking for alternate energy and conversation of fossil fuels. This is due to planetary energy ingestion has increased by 10 % yearly and is expected to go on to increase. Besides, the demand for recycling merchandises are going a tendency now because planetary refuse aggregation had cause important strains on national dumping evidences and landfills.
There is a demand for refuse decrease, options to landfills every bit good as mitigate pollution and related diseases2.1.3 Ageing PopulationDue to the planetary ripening population ( 60 old ages and supra ) expected to increase from 10 % to 22 % by the twelvemonth 2050, there are many distinguishable demands.
There is a demand for healthier aged population, increased work productiveness and better wellness societal attention services.2.1.3 Knowledge Based EconomyThe current cognition based economic systems has consequence in significant growing in communicating, informations storage and information engineerings therefore more cognition is generated and determination devising procedures are accelerated, societies, economic systems and concern operations become progressively complex. In this case, there is a demand to filtrate information and cut down the dealing costs.2.1.4 IndividualizationIndividualization refers to the province of a society in which people decide independently.
The society is traveling towards the way. With the demand for showing ain sentiments during determination devising procedures, self awareness addition bit by bit. Hence, in this respect, people aim for societal differentiation every bit good as enlargement of experience and amusement.
2.1.5 Artificial IntelligenceThere is a tendency for extension of merchandise life rhythm. Some bing merchandises are now re-engineered to go igniter, stronger, smarter every bit good as cleansing agent. Consumer are now more demanding, they want new engineerings to better their merchandise ‘s lives.2.
2 – Market Cleavage2.3 – Appraisal of Market OpportunitiesThere are estimated 500 companies in Singapore ‘s fabric industry which represents 3 % of the entire companies in Singapore. Most of the fabric makers in Singapore usage out-dated and inefficient engineering for their production. These companies are either slow in production or their merchandise quality non up to quality. United Textiles believes that this is a good chance to perforate into the market.
2.4 Target Market and Customer SegmentSports FabricsDue to the addition of involvement in athleticss and out-of-door activities and the influence of major athleticss events such as World Cup and Olympic games, this sector is expected to demo a high growing rate. Today ‘s athleticss and out-of-door activities demand high public presentation equipment and dress. The light weight and safety characteristics of fabric merchandises have become of import in their permutation for other stuffs.Home fabricsOne of the largest proficient fabric markets, this sector comprises household fabrics and trappingss used in contract applications and by the upholstered furniture industry.
The latter include fiberfill and packing applications in bedclothes, shock absorbers, kiping bags and furniture backups. The end product of this sector shows slightly-below mean unit values for the industry. Market growing has been moderately strong.Transportation system fabricsThis sector comprises all fabrics used in autos, trucks, trains and aircraft. It is the 2nd largest market sector in North America. Merchandises range from rug, trunk-liners and upholstery through beltings, tyre cords and complexs for aircraft organic structures.
The market is mature and accordingly shows merely low growing. Unit values, nevertheless, are above norm for the industry.Military fabricsThis is a big end-use market consisting a mixture of low value/ low tech and high value/hi-tech merchandises. It includes uniforms, medical merchandises, complexs used in military equipment, impermanent edifices, disguise cloth, sacking and FIBCs. This is besides an country of considerable proficient development and possible growing.Clothing constituentsThis sector comprises run uping togss, interlinings, packing materials and insularity stuffs used in vesture and footwear. Given the contraction of the US dress industry the market has declined. However, the enlargement of dress fabrication in the Caribbean basin still offers growing chances for US companies and merchandises have high unit values, proposing a specialised industry.
BoxingThis market comprises diverse packaging utilizations, including traditional bags and pokes made from jute, cotton and flax but progressively from woven polypropene. An of import section is alleged flexible intermediate majority containers ( FIBCs ) for powdered and farinaceous stuffs. Another non-traditional merchandise application is the usage of lightweight nonwovens and knitted constructions for the nutrient industry. These include knitted sacking for fruit, absorptive mats for fresh green goods, and nonwovens for tea and java bags. Another section is textile support for tapes and envelopes.
The packaging market represents a moderate growing country, though there is a turning ( environmental ) need for re-usable bundles and containers and it is believed there will be new chances for fabric merchandises in this market.Industrial fabricsThis section includes fabrics used straight in industrial applications or incorporated into other industrial merchandises, such as filters, conveyer belts and scratchy belts, every bit good as supports for printed circuit boards and seals, gaskets and others industrial equipment. This is one of the largest market sectors and a reasonably strong growing country.2.5 – Designation and description of advanced merchandiseUnited Textile has two important strengths.1. The Smart fabric interface.
No other merchandise offers this sort of nanotechnology for fabric. As sporting and adventurer searcher wears, needs more strength and lightweight, utilizing C nanotubes which are already in topographic point baseball chiropterans and tennis rackets. Nanotech-based cloths will be incorporated to a turning extent in our athleticss dress for added strength, discoloration opposition, wet wicking and other benefits2. Using natural stuffs such as cotton and wool or other man-made fibers for our fabrication stuffs.FailingsA possible failing for the United fabric merchandise is the higher pricing, nevertheless, each united Textile merchandise will come with specification of stuff it ‘s made of, it ‘s benefit and in good quality. We believe that our consumers will accept our merchandises with grace.2.
6 – Selling SchemeThe company ‘s selling program will be a five measure procedure.1. See lastingness, merchandise design, dependability, resources and production capacities during research and development stage.2. Develop short and intermediate gross revenues ends within our company ‘s capablenesss, it will be realistic, these ends should affect merely practical attempts and low-cost outgos within budget.
3. Merchandise scheme harmonizing to merchandise scope for athleticss, lasting quality merchandises, consumers utilizing for utmost status, high value-high monetary value scope and for manner. Pricing program will be fiting the demands4. Develop selling schemes, there is no “one size tantrum all” selling program, schemes are to be cater to different groups of consumers taking into consideration of geographic market displacements.
However, the common selling schemes like direct mail, teleselling, cyberspace marker, trade shows, gross revenues publicity runs will be used. The differences will be in the content as clip varies.5. Pricing schemes will order which clients it will be attracted to. The high monetary value construction pricing schemes will present messages to consumers that the merchandises pricing are appropriate. The company ‘s merchandise pricing are targeted at the mid-level income and above.The psychological nature of pricing scheme will be based on the worth of the merchandise in some instances ; it is interpret by consumers harmonizing to the degree of the point ‘s monetary value. All merchandises monetary value are to be shown.
All specification of merchandises from its made, origin, stuffs, utilizations and merchandise attention will be shown on each piece of merchandise as study shown consumers have fewer oppositions to merchandises with more meaningful consumer ‘s benefits.2.7 – Gross saless StrategyTo maintain client uninterrupted with us, we will necessitate to develop client trueness and satisfaction by clients ‘ wagess and a database. Each client would shop with us will hold their ain penchants and highlighted merchandises display after their first log on to our E-commerce platform. It will come with intelligence and updates of related merchandise and events which might involvement them.
An on-line personal study will be done every 6 months for each client to rate and notice. Not merely clients will be view of import, we could besides upgrade our service to even more clients based on feedback.3. Development of Products & A ; Servicess3.1 – Design – Development – Lunch Plan ( Milestones )2010 – 20112010March Putting up concern proposal, and sourcing for investors.
Look at Bankss for loans/sponsors and authorities AIDSs for company start-ups. Behavior market research, mails-5000 individual, phone interviews-500 individual and visits-50 individual.June Establish theoretical information of company.
Begin R & A ; D ( research and development ) programs. Initialize E-commerce platform. Look for providers for new improved stuff on merchandises.
Establish costs and find possible market.September Review E-commerce platform consequences and market research, concern program to intermix into informations. Confirm costs and develop concluding transcript of program. Incorporation of venture, find location for office. Start sourcing for adult male power, be aftering for trade shows, route shows and events for 2011.December Ordering of merchandises, stuffs and engaging the needed right individual. Obtain funding. Training for the staff in readying for events.
Signing up distributors and traders.2011March Going for trade shows 2011, organizing route shows/events. Review of past one twelvemonth advancement and do accommodations.
First gross revenues and first bringing.June Plan for sing abroad tradeshows and events for concernSeptember Plan for hosting telecasting selling events, organizing year-end outfit show. Plan for local boutique/shop, location, gross revenues and hiring of local gross revenues staff.Future Develop community for our merchandises, organize a nine and on-line forum.
Organize mill visits on our procedure, overseas tour trip for members. Hold fundraising events for local charities. Invite famous persons and back our merchandises. Continuous betterment reappraisal program.3.2 – Buying & A ; OutsourcingAll managers agree upon to ne’er depend merely on beginning, to forestall any bad lucks from go oning. United Textile will hold at least two major providers for our production ; contract will be signed and enforced to guarantee on clip bringing and quality of stuffs.United Textile besides has two major cargo send oning companies to back up on our bringings.
Continuous attempt will be made to beginning for providers and cargo forwarding in line with company policy and cut down any unneeded cost.The logistics section will organize with each providers and cargo forwarding companies. Logistics section will besides be in charge of managing local bringings.United fabric will outsource histories to external accounting house for the get downing 18 months till our accounting section is able to work on its ain.
3.3 Protection of Intellectual PropertyUnited Textile ‘s success is extremely dependent on its R & A ; D ( research and development ) for smart fabric. High importance will be placed to protect United Textile ‘s rational belongings rights. Direct gaining from selling rational belongings is secondary to United Textile.United Textile will non publish licencing rights to other spouses to fabricate our merchandises, selected abroad spouses will hold rights to sell, administer and organize their local trade shows.Enquire hallmarks licencing for United Textile and its merchandise. Our Nanotechnoloy for smart fabric will be patent. The patent procedure will take 2 old ages to finish at a cost of less than $ 2400.
Below is the dislocation for patent timeline:-Pre-examination procedure, 3 months at $ 740 basic registering fee.-Examination procedure, 19.4 months at $ 1580 allowances fee.-Post-examination procedure, 2 months.Entire: 24.
4 months taken at cost $ 2,320.Specification will be needed for the merchandise, the debut, description, drumhead, illustrations of its application and some flexibleness in the claims.4. OperationssOperationss include and describe the physical necessities of the concern ‘s operation and the production of merchandises and services for clients.
It presents the action program for put to deathing the company vision.4.1 – Supply ChainSuppliers which manufactures or supplies “Smart Textiles” provides the necessary goods that will be sold to the market. It is of import that the company make non merely rely on a individual provider for the goods but to hold at least an alternate regular provider. This will assist forestall any unanticipated jobs should the first provider failed to present or should at that place be any jobs with the goods.As there are few providers of the “Smart Textiles” in the industry, the providers will hold a high bargaining power for their goods.
Bing on the top of the value concatenation, the providers will prefer to cover straight with other concern entities instead than the end-user. Thus, strategic partnerships are critical for the benefits of the company.The mean clip for the goods to arrive via ocean-freight from the two providers located in Europe is 2-3 hebdomads. In the event of any pressing demand for supplies, the eventuality program is to hold a bale of fabric flown in via express messenger services which will takes about 3 yearss.As warehousing infinite is expensive in Singapore, proper be aftering have to be done to guarantee that no warehouse infinite is left empty and that all scheduled incoming cargos have a storage infinite allocated. The warehouse is located in the MacPherson industrial country, as it is centrally located with easy entree to major roads and freewaies.
4.2 – Scope & A ; Scale of OperationsAll surpassing goods from the warehouse will be subjected to a mandatory quality control ocular review before they are despatching out to clients. It is the duties of the operation squad to guarantee that all outgoing goods are choice checked and matches the clients ‘ orders.4.3 – Short-run GoalsThe company has set 4 short-run ends for the first twelvemonth of operation. Achieving these ends will be the top-most precedence of the direction squad.1. Complete renovating, carrying, engaging and initial selling.
As this is a new concern set-up, it is paramount that the substructure of the full company is up and running. Ample stocks have to be in the warehouse in readying of any immense orders. In add-on, cardinal forces critical to the smooth operation of the company needs to be beginning and hire. An initial selling run will be soft-launch to a limited audience before doing it by and large available so as to garner informations on the merchandise ‘s credence.2. Penetrate and raise consciousness in 60 per centum of targeted consumer market.
Following the soft-launch of the merchandise, another selling run will be hard-launch where the merchandise will be made available to the general populace. Selling tools such as Mailers and electronic mails will be send out to possible consumers found in concern directories and publications to inform them about the company. A company and merchandise web site will be set up so that a wider consumer base can be reach with the minimal consequence.3. Construct a solid client base and mailing list.From the questions received after the two selling run, an initial client base can be established. These interested consumers will be send regular updates of the company new merchandises or publicities via e-newsletter. Good after-sales service will necessitate to be provided so that feedbacks can be gathered, and jobs countries necessitating betterment can be acted up without hold.
4. Generate repetition and referral gross revenues.Consumers who purchased on a regular basis will be given 30 yearss recognition payment footings as a manner of thanking them and to promote them for farther purchases.
They will hold transcripts of our merchandise samples so that they are able to go through them on to their concern opposite numbers. In add-on, whenever new merchandises are launches, the regular clients will be given the privilege to seek them out before the remainder.4.4 – Long-run GoalsFollowing the ends set for the first twelvemonth of operations, long-run ends from the first twelvemonth till the 3rd twelvemonth of operation are derived as follows.
1. Gross mileposts will be attainedIt is critical that any concern will accomplish break-even by the 3rd twelvemonth of operating. If the company had yet to accomplish break-even, a thorough analysis of the company ‘s operation and fiscal wellness demand to be conducted to happen out the job countries which are to be dealt with instantly.2. New merchandises and services will be introduced to the market placeAs a company grows, it has to constantly innovate and come up with new merchandises.
As per Ansoff ‘s matrix, there are four possible product/ market combinations for the company to turn ; market incursion, merchandise development, market development and variegation.3. Cardinal client contracts will be securedWhile the client base could already be of a significant size by T he 3rd twelvemonth, it is besides of import that cardinal clients who have a large and steady flow of orders on a regular basis are secured and decently ‘serviced ‘ .
4. Key employees will be hiredAs the company grows and spread out, new places are created and need to be staffed. Forces with huge experiences need to be recruited to helm the new place to bring forth new thoughts in order for the company to make greater highs.5. Management5.1 – Organizational StructureThe concern ( Limited Liability Partnership ) will be headed by 3 pull offing spouses, who each hold the place of Director and are each in charge of specific department/s in the house that they have experience in. Others places in the organistation will be hired.5.
2 – Board of Directors and Management Team1. Directors of the BusinessThe directors of the concern ( Limited Liability Partnership ) comprisesof the undermentioned members:Mr. CHAI Y.Z.Director of Marketing/ Gross saless and Operations/ Logistics sectionsMr.
NG C.K.Director of Human Resource/ Administration andAccounts/ Finance sectionsMr. LIM N.
S.Director of Research and Development section2. Management TeamThe direction squad of the concern are the pull offing spouses of the company. They are highly-driven persons working together for the success of the company.Mr. CHAI Y.Z.
, Director of Marketing/ Gross saless and Operations/ Logistics sections is the overall in-charge of the Marketing and Gross saless section which comes up with the selling scheme and gross revenues run for the company and the Operations and Logistics section which monitors the quality control and warehousing for the full company. There is a director in each section whom reports straight to him. His duty is to supply leading and coordination of company gross revenues and selling piece at the same clip, monitoring and analysing gross revenues and selling activities against the company ends. In add-on, he is besides responsible for the establishing and care of necessary operational systems and processs to guarantee the most effectual use of installations, equipments and manpower under his control, while keeping a quality merchandise.
Mr. NG C.K. , Director of Human Resource/ Administration and Accounts/ Finance sections heads both the Human Resource and Administration section, and the Accounts and Finance section. The external hearer of the company and the two directors of each section reports straight to him. As the caput of the Human Resource and Administration section, his duty is to develop and implement corporate human resource scheme and plans. At the same clip, he besides needs to guarantee the presence of an effectual and efficient administrative service to the company.
Similarly, Mr. NG will supervise all accounting maps, accounting policies and patterns, pull off the company ‘s exchequer maps, direct budgeting, audit, revenue enhancement, and contribute to the company ‘s strategic program.Mr. LIM N.S.
, Director of Research and Development section leads the Research and Development section of the company. He will take part in the company ‘s strategic planning and in puting the company ‘s technological way. In add-on, he will analyze engineering tendencies, human resource demands and market demands to be after undertakings.5.3 – Wage of Management & A ; EmployeesTo successfully construct a nucleus competent pool of employee, the company ‘s wage bundles are pegged to the market criterion every bit much as possible. Claims and allowances are allowed where necessary every bit long as they are justifiable.
The 3 pull offing spouses of the company will be each paid a monthly wage of $ 4,000, while the section directors are paid $ 2,500 monthly and the remainder of the company staff, a combined amount of $ 20,000. The entire wage paid to all employees of the company including managers and directors is $ 504,000 per annum.6. FINANCIAL POSITION6.1 – Cash Flow StatementCASHFLOW STATEMENT6.3 – Break-even AnalysisThe variable unit cost for bring forthing one meter of Smart Textiles is $ 1.
00.We are projecting at 24 months to interrupt even and the cost isYour MBA spouse has forecast expected unit gross revenues of 150,000 Burgers in 18 months.The unit monetary value you are projecting for the Burger is: $ 1.99.This is your best estimation of what the mean consumer will pay for your soy-burger.If you charge $ 1.99 for your Burger, how many Burgers will you hold to sell before you make back your entire cost: $ 140,000 + ( 150,000 Burgers x 97 cents ) ?Enter the variables into the Break Even Calculator.
Then click Calculate.6. Hazard ExtenuationFiscal Hazards1. Interest rate hazard.2. Currency fluctuationsBusiness Hazards1. Economy Downturn/Crises2. War, work stoppages and catastrophes8.
Investing Proposal8.1 – Motivation of InvestorsDespite the planetary economic crises, the impact on Singapore markets is at minimum. Optimistically talking, Singapore economic is turning but at slow gait. Majority of the industries are turning and one of them is the fabric industries.United Textile ‘s managers are exhaustively familiar with the market, research and development are our strong point and able to contrive tendency alterations before the consumers. All three managers have strong leading qualities prior to United Textile. Director Ng was a European MNC finance director.
Director Lim is one of the few Asiatic research workers whom won an award ; it was the advanced scientist award for engineering at the immature age of 19 awarded by a Singapore authorities organic structure, regulating on trade, productive and engineering growing. Director Chai, has antecedently started up an E-commerce company with lone US $ 22,000 covering with on-line retailing, he has late sold off the company at US $ 1.6 million dollars. The E-commerce company was 3 old ages old when it was sold off, doing about 800 % of its start up cost.Notwithstanding, we are expected to incur losingss for the first one or two old ages in the concern so as to construct our foundations and our client bases. However, 3 old ages ahead, we are projecting acquiring net undertaking of over one million dollars.
We will be besides perforating into the Asia states for gross revenues enlargement.8.2 – Estimated Capital Requirements and Purpose.In line with our strategic planning demands and for gross revenues to increase, our working capital demands to be increased and adjusted. United Textiles require an appraisal of about $ 1.154,000 dollars on top of their get downing off capital to finance on their hereafter working capital.8.
3 Beginnings of CapitalMachineries $ 400,000, Equipments $ 30,000, Renovation-work $ 100,000, R & A ; D $ 200,000, Gross saless and marketing $ 100,000, Electrical $ 20,000, Rents $ 144,000, Advertising budget $ 50,000, Additional financess of working capital $ 100,000, Insurance $ 10,000. Entire = $ 1,154,000 dollars8.3 Proposed Debt to Equity Structure.The debt ratio compares entire liabilities to entire assets. Obviously, more of the former means less equity and, hence, indicates a more leveraged place The proposed debt to equity construction will be 1.25 for United Textiles in the 3rd onwardsBIBLIOGRAPHY & A ; RESOURCESGeneral Reference1. Kuratko Hodgetts.
, ENTERPRENEURSHIP Theory, Process, Practice Seven Edition, Thomson South Western 2007.2. Dickerson, K.G. , Textiles and dress in the planetary economic system, Upper Saddle River, N.J.
: Merrill, 1999.3. U.S. Industry & A ; Trade Outlook, New York: DRI/McGraw-Hill: Standard & A ; Poor ‘s ; Washington, D.C.
: U.S. Dept. of Commerce/International Trade Administration, 2000, ch.9.
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