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Chocolate ShopChocolate Shop

Business Start-up PlanBusiness Start-up PlanTeam No. 2Team No. 2

CEO : Ms. NancyCEO : Ms. NancyCFO : Ms. HalimaCFO : Ms. HalimaCMO: Mrs. Lin CMO: Mrs. Lin

July 29July 29thth, 2009, 2009

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1. Business Proposal1. Business Proposal

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Line of Business:Line of Business:Chocolate shop (Production & Selling)Chocolate shop (Production & Selling)

Expected date of start-up:Expected date of start-up: Jan.1Jan.1stst, 2010, 2010

Location:Location:Shanghai- ChinaShanghai- China

EleganceElegance ObjectivesObjectives:: - Produce a high quality Hand-Made - Produce a high quality Hand-Made Assorted Chocolate. Assorted Chocolate. - Establish our brand “ - Establish our brand “EleganceElegance”” - The seed of our chain in the Far East - The seed of our chain in the Far East then world wild. then world wild.

Opportunities:Opportunities: - Few high quality manufacturing - Few high quality manufacturing companies in China companies in China - Large market - Large market - Less competition - Less competition - Know-How - Know-How - Low operational cost in China - Low operational cost in China

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Business experience:Business experience:

N No experience to run business.o experience to run business.

Elegance Elegance Relevant experience, education, certificates and Relevant experience, education, certificates and personal backgroundpersonal background

High qualified & well integrated management, marketing and High qualified & well integrated management, marketing and technical experience:technical experience:

Education:Education:MBA degree (Economics and HRM) and Industrial Engineering MBA degree (Economics and HRM) and Industrial Engineering

Certificates: Certificates: - Trade Negotiating : Approaches And Practices - Trade Negotiating : Approaches And Practices - Certified Project Manager (PMP) - Certified Project Manager (PMP) - Investment Promotion - Investment Promotion

Personal background: Personal background: - Economic Studies - Economic Studies - Evaluation of The Economical Policies Impact - Evaluation of The Economical Policies Impact - Chocolate Manufacturing - Chocolate Manufacturing - Enterprise Development - Enterprise Development

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Detailed products and/or servicesDetailed products and/or services

- Size of packaging: 200g, 400g & 600g - Size of packaging: 200g, 400g & 600g - Shapes: 20 moulds & 10 inhomogeneous hand-made - Shapes: 20 moulds & 10 inhomogeneous hand-made products products - Free delivery service - Free delivery service - On-line shopping - On-line shopping - Reservation is available - Reservation is available

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Strengths:Strengths:

- High quality products - High quality products - Fashionable - Fashionable - Free delivery service - Free delivery service - On-line shopping - On-line shopping - Reservation is available - Reservation is available - Variety of products - Variety of products - High added value - High added value - Qualified staff - Qualified staff - New machinery and simple process - New machinery and simple process - Financial autonomy - Financial autonomy - Low operational cost - Low operational cost

Elegance Elegance 2. Customers & Suppliers2. Customers & Suppliers

Customers:Customers:

- Young people - Young people - Middle & high social classes - Middle & high social classes - Tourist - Tourist - Business men Private labeling interests such as - Business men Private labeling interests such as hotels, airlines,…etc. hotels, airlines,…etc.

Suppliers:Suppliers:

- Chocolate Blocks suppliers from UK, Belgium and - Chocolate Blocks suppliers from UK, Belgium and Switzerland Switzerland - Packaging material suppliers from Chinese - Packaging material suppliers from Chinese manufacturersmanufacturers

Elegance Elegance 2. Customers & Suppliers2. Customers & Suppliers

Customers:Customers:

- Young people - Young people - Middle & high social classes - Middle & high social classes - Tourist - Tourist - Business men Private labeling interests such as - Business men Private labeling interests such as hotels, airlines,…etc. hotels, airlines,…etc.

Suppliers:Suppliers:

- Chocolate Blocks suppliers from UK, Belgium and - Chocolate Blocks suppliers from UK, Belgium and Switzerland Switzerland - Packaging material suppliers from Chinese - Packaging material suppliers from Chinese manufacturersmanufacturers

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400hocolate\The tempering machine model T E.doc 400hocolate\The tempering machine model T E.doc

Operational

fundsA

ssets purchase / leasing

Required fundsAmount(US$)

Fund raisingAmount(US$)

Tempering machine MouldsVanMotorbikeLab Top * 2DecorationWeb siteOther tools

20,00015,00010,000

8001,600

20,0001,0003,000

(71,400)

Own capitals (100%) 452,400

Loans from family, relatives and friends (details and loan terms)

0

Public grants (details and conditions)

0

Renting a Shop – 100 m2

Renting an operational room – 200 m2

Raw materialPackaging materialElectricity, water & fuelAdvertisementsSalariesOthers (stationary…etc)

40,00010,000

300,00014,000

4005,000

11,200400

(381,000)

Loans from commercial banks and/or other financial institutions(details and loan terms)

0

Total (A) 452,400 Total (B) 452,400

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3. Required Funds and Fund Raising

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4. Income Forecast (monthly average)

Start-up (US$)

1 year later (US$)

Details of revenues, costs of products and operational expenses

Revenues (1)

1,125,000 1,500,000

Costs of products (2)

529,950 508,000

Salaries

5,600

5,600

Rents

25,000

25,000

Interests / installments

0 0

Others

159,900

159,900

Sub-total

(3)

190,500

190,500

- Amount of sale forecast= 500kg/day= 15,000 kg/month

- Pricing strategy = less than the market price (market price = 80 US$) and our unit price = 75 US$

Start-up: Revenue =15,000kg x 75 Cost of products= 1,125,000 x 0.47 Unit cost(first 6 months) =35.33US$ 1 Year later: Revenue= 20,000kg x 75 Cost of products= 1,500,000 x 0.34 Unit cost = 25.4 US$

Income before tax

(1) – (2) – (3)

404,550 801,500

Operational expenses

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Thank You!Thank You!