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CREATIVE-ART-CLUB Fv CREATIVE ART CLUB CREATIVE ART CLUB 2017 1 EXECUTIVE SUMMARY The proposed business would deal with canvas painting as well as the normal paintings. Art paintings would have three categories, viz., Abstract painting, Landscape painting and Realistic painting. The prices of the art works would vary depending on the complexity and time duration. Every painting would depend on the time duration and complexities of the paintings which is why the Abstract painting is charged higher than the other two paintings. The Abstract painting is charged at Nu. 12,000, while the Landscape painting would be charged at Nu.10,000 and Realistic Painting at Nu. 9,000. Although the price of every category of paintings is given in the financial statement however the price may vary depending upon the needs and demands of the customers. The report presents the justification of the project, market analysis, resources required, plant location, environmental aspects, implementation of the project, cost presentation and financial analysis. 1. Justification of the project: People’s exposure to outside countries and its lifestyle is encouraging the people to have attention and interest in arts and its expressions. The arts not only beautify the surroundings and home but also it soothes one’s mind and soul. 2. Market analysis: Many artists are expressing themselves today and in the capital alone, within the last 10 years, the number of art galleries has increased from one to five. Some of the artist showed this through photography and visual displays while others show it through art, architecture and crafts. 3. Resource required: The main raw materials required for the creative art club is paint brushes, carpentry equipments and Artist palette which should be present for the artist to continue with the art. 4. Plant location: Considering the density of the population and the potential customers in the market, the Art club would be located in Thimphu, a place which is one of the active places in the country. 5. Environmental aspects: The production of the Arts may cause odors which would affect the 1 Compiled by IBEST consultancy Services CREATIVE ART CLUB 2017 environment and the left over products and waste can be problematic, however it would be disposed of properly. 6. Implementation of the project: The implementation of the project would take 4 months. 7. Cost presentation and financial analysis Fixed Cost 189,345 Working Capital 158,455 Total Investment 347,800 Break Even point 143 Units Return On Investment(ROI) on Sales 500% Return On Investment(ROI) on Total 117% Investment Payback Period 3years and 3 months 2 Compiled by IBEST consultancy Services CREATIVE ART CLUB 2017 TABLE OF CONTENTS 1 EXECUTIVE SUMMARY .............................................................................................................................. 1 1.1 Business Model Canvassing ............................................................................................................. 5 2 Justification of the project ......................................................................................................................... 6 2.1 The need of the project ...................................................................................................................... 6 Critical Success Factors .................................................................................................................................... 6 STRENGTH ......................................................................................................................................................... 7 WEAKNESS ........................................................................................................................................................ 7 OPPORTUNITY ................................................................................................................................................ 7 THREAT ............................................................................................................................................................... 7 2.2 Competition Analysis ......................................................................................................................... 7 3 Market Analysis............................................................................................................................................. 8 3.1 Structure of the industry .................................................................................................................. 8 3.2 Demand vs. Supply .............................................................................................................................. 8 3.3 Pricing and Marketing Strategies .................................................................................................. 8 Promotional Strategy ..................................................................................................................................... 9 3.4 Competitiveness of the project ....................................................................................................... 9 3.5 Special attributes desired by target customers ....................................................................... 9 3.6 Terms &conditions and product specifications desired by target customers .......... 10 3.7 Assessment of Comparative Advantage ................................................................................... 10 4 Resources ..................................................................................................................................................... 11 4.1 Sources of raw material ................................................................................................................. 11 4.2 Assess the availability of manpower & skills ......................................................................... 11 4.3 Assess the need for skill development ..................................................................................... 11 5 Environmental aspects- Regulation & environment issues ...................................................... 11 6 Project Implementation Schedule ....................................................................................................... 12 7 Financial Analysis ...................................................................................................................................... 13 7.1 Total Project capital Costs ............................................................................................................. 13 7.2 Working Capital Costs..................................................................................................................... 14 7.3 Cost of Production per unit ........................................................................................................... 14 3 Compiled by IBEST consultancy Services CREATIVE ART CLUB 2017 7.4 Human Resource cost ..................................................................................................................... 15 7.5 Marketing Cost ................................................................................................................................... 15 7.6 Project profit and Loss Statement .............................................................................................. 16 7.7 Projected Cash flow statement .................................................................................................... 17 7.8 Projected Balance sheet statement............................................................................................ 18 8 Financial Ratio analysis .......................................................................................................................... 19 8.1 Interest on loan ................................................................................................................................. 19 8.2 Break Even Point .............................................................................................................................. 19 8.3 Return on Investment ..................................................................................................................... 19 8.4 Net Present Value and Internal Rate of Return..................................................................... 19 9 Final Finding and Recommendation .................................................................................................. 20 10 Conclusion- Is project feasible ......................................................................................................... 21 11 References ............................................................................................................................................... 22 12 Annexure .................................................................................................................................................. 22 13 .............................................................................................................................................................................. 22 4 Compiled by IBEST consultancy Services CREATIVE ART CLUB 2017 1.1 Business Model Canvassing Key Partners Key Activities Value Customer Customer Propositions Relationship Segments Wood Paintings industries Abstract In-person Art Lovers Enterprises painting which Telephone Museums Art is new to the Galleries country. Key resource Channels Artist Online and offline medias Cost structure
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