20. Heaven land is providing superior and friendly service to its customers.7.3 Financial forecast<br /> M/S Heaven land amusement park <br /> Trading and P& L account for the year ended as on 31th march 2012 Trading and P& L account for the year ended as on 31th march 2012 Trading and P& L account for the year ended as on 31th march 2012<br /> <br />ParticularAmountParticularAmountTo purchaseTo gross profit c/dTo salaries and wagesTo electronic expencesTo telephone expencesTorepair &maintenanceTo advertisingTo depreciationTomiscellaneousexpencesTo insuranceTo bank chargesTo net profit5,50,00010,00000009,94,50,00013,40,00010,80,00015,0001,00,0005,00,0005,00,00030,0006,00,00050,0009,52,35,0009,94,50,000By salesBy gross profit b/d10,0000000994500009,94,50,0009,94,50,000<br /> Balance sheet of Heaven land as on 31st march 2012<br />LiabilitiesAmountAssetsAmountCapital accountNet profit 5,00,000,009,52,35,00014,52,35,000Fixed assetsLand & buildingMachinery& equipmentOffice furnitureCurrent assetsCash at bankCash in handSundry debtorsInvestmentLIC accountMutual funds4,00,000,0050,00,0002,35,0004,00,000,001,00,000,002,50,000,001,50,000,001,00,000,0014,52,35,000<br />7.4 Breakeven point<br />We can calculate breakeven point with the help of following formula:<br /> Fixed cost<br /> = <br /> Selling price-variable cost<br />as we know fixed cost of heaven land is Rs. 5 crore. Selling price is Rs. 200 and Variable cost is 100.<br />According to formula, breakeven point of heaven land will be written as :<br /> <br /> 5,00,000,00 5,00,000,00<br /> = <br /> 200-100 = 100<br /> <br /> = 5,00,000<br />Heaven land will achieve its breakeven point when it will provide services to 5,00,000 customers.<br />Sale = 5,00,000 * 200 = 10,00,000,00 ( as shown in trading and P&L account)<br />7.5 Benchmarks<br />Heaven land amusement park is going to follow the standards of disney amusement park.Disney amusement park is a theme park but we follow their rules to provide better and unique services to our customers.<br />8. Financing<br />8.1 Summary of operations prior to financing<br /> In order to carry on with the various operations in Heaven land there are some legal formalities such as Firstly we have to register the name of heaven land amusement park to the registrar then we have to get an approval from government such as NOC, business license, current account formalities , sign permit, amusement park license, and fire certificate etc. After getting certain approval we can start with the operations of HEAVEN LAND. <br />8.2 Funds required and timing<br />For heaven land I need minimum Rs 4crore in first 6 months for its land and construction and various operations under it and I need Rs50 lakhs in next 6 months for the establishment of machines according to the requirements and moreover i required 1 year to complete this project. <br />8.3 Use of proceeds<br />In order to provide amusement services,heaven land will take certain things.these are as:<br />Advertising<br />Interior Furniture<br />Insurance<br />A.C<br />Architect<br />Bathroom Renovation/Plumbing<br />Lighting/Sound<br />Sign<br />Swimming pool stationary<br />Liquor License<br />Building Permit<br />Ice Machine<br />Soft Drink Dispenser<br />Web Site<br />Pool Tables<br />Various other games<br />Sky coaster<br />Bumper boats and many more<br />9.Risk analysis<br />9.1.Risk overview<br />Risk is associated with every business .risk can be from the competitors,changing preferences of customers,change in demand etc.<br />Heaven land has to face risk because of : competitors, busy life of people as they don’t have time for entertainment.<br />9.2 Limiting factors<br />Limiting factors are considered as limitations of B-plan.There are some limitations of heaven land due to lack of experienced staff,lack of team work, unpunctual staff .<br />9.3 Alternative scenario<br />In any case if my b-plan will fail ,i will continue with this plan by finding the various reasons of failure .To overcome these failure ,i will introduce some strategies.<br />9.4 Risk reduction strategies<br />These are those strategies whish help to reduce risk associated with business.as mentioned above that heaven has to face risk from its competitors and changing preferences of customers.to reduce this risk , heaven land will develop several strategies like heaven land will provide unique and superior service to its customers and heaven land wiill keep in touch with people by organising seasonal festivals.<br />