Superman Handymen Services

Proposed to:
Dr. Raju Rathod

Promoters:
Jignesh Mavani, 12F61 Ketan Khandelwal, 12M64 Mohtaseem Shaikh,12M67

Contents
1. Introduction 2. Present Status and Market Potential 3. Type of Unit & Site Selection 4. Cost of project 5. Means of Finance 6. Manpower requirement 7. Administrative Expenses 8. BEP (No. of calls required) 9. Projected Financial Statements

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Introduction
A lot of repair and maintenance work is required to keep a house working properly and to provide comfort zone to the occupiers. The vital services that are required by a house include electrical work, plumbing work, carpentry work, painting work, etc. With time we have seen that it is becoming increasing difficult to find electricians, plumbers, painters etc., unless you have been in contact with such persons since years they are seldom available at your convenience. Lot of work can be performed by an individual without the need of an expert help, but work involving main electrical lines of the house or mending an old piece of furniture would require expert help. We are often trapped in no mans land and search for such expert help to resolve our issues, and it is than that we realise that it is difficult to find such people. Speaking from a personal point of view, we are never able to secure plumbing services immediately when required, even if we find a plumber, he would be available after a couple of days. This inspired the idea of developing a common platform which would provide human resource to take care of such household activities. Often such small jobs in the house become a pain for the occupants, and we are aiming to solve those issues by providing handymen at their convenience at a reasonable price.

Exactly, Who Is, And What Is A Handyman?

Common Description The handyman profession is not easy to define, for instance, if I were to say that a handyman is a person who offers his home repairing talents for money, I would be right, but not very helpful. By listing the specific skills a handyman should have, I would be in hot water, as for every skill I would have to add to the list of required talents, such as; electrical repairs, plumbing repairs, tile work, locksmithing, etc. No matter what, I'd be eliminating lots of handymen, and if I got more specific by listing job sizes they would accept, painting a wall, painting a house, and so-forth, again I would be lopping off more handymen with each increase in job choices. Not all handymen are "Jacks (or Jill's)-of-all trades," as they come from all walks of life and all sorts of interesting backgrounds. Some handymen come from a trade background with Page | 2

primary skills in, say, carpentry or the construction field. A few are electricians and plumbers, although not as many as you might expect, given that the money is usually better in those licensed and often unionized professions. Some are tile installers or roofers or appliance repair people who, fill in the lean times with handy-work from their current customers or referrals. A handyman should be defined as a person that can do the job or jobs you need done around your home, and not someone who is capable of doing everything. So, naturally the more you can do, the better your handyman business.

What a Handyman Does?

Simply and plainly, you solve problems. In general, your services are geared to home owners who require small jobs completed around the house, such as installing a light fixture, fixing a leaky faucet, cleaning out an area, or repairing a drywall. As it relates to your extended skills and abilities, other jobs may be offered you, such as painting, yard work, assembling or repairing furniture or equipment, removing junk, putting down carpet, or just about anything else you can think of! Needless to say, the most successful handymen enjoy a wide range of knowledge they can draw on. If you want to start up a handyman business, you should be prepared to work in many areas, including the following:
Plumbing, Electrical, Carpentry, Painting, Tiling, Refinishing surfaces,

etc.

Of course, you also need to know what your limits are. You'll need to be prepared to be called on to do any number of other tasks as well, depending on your customers' needs.

That, in a roundabout way, is the nature of the handyman business, and what makes a handyman so valuable, to many indispensable.

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Target Customer
The target customer would be everyone who requires any of the above mentioned services; this would include households and offices. Anyone can call us for assistance and we would provide the required services at pre-decided rates. Customer has to be a resident of Surat city, as we would be confining our operation to Surat city, until we decide to expand to other cities as well. Also, the customer will be provided with the estimated rates before any kind of work is performed and only upon agreeing to the said rate, the work will be executed.

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Present Status and Market Potential

Basic Information
This is a relatively new concept in the Indian market and hence almost the entire work is based up on calculated assumptions. The same kind of business model exists in foreign markets, especially in the USA, where it is estimated to be $126 billion in the year 2007 and is growing annually at a rate of 4%. As Indian people are adopting western lifestyle, the expectation of this model being successful is high. The increasing level of education and aspiration among the masses has led to a situation where both, husband and wife are working and this provides a great potential that can be exploited as the disposable income of the family has increased, and also they would try to avoid doing such jobs on their own. Currently there is just one such firm operating in India, Handymen India in Pune. The services that will be offered to the customer through this firm are available in the market but separately, i.e. a firm would provide only plumbing, painting, electrical, etc. hence by providing a common platform to the customer for their varied needs, the probability of success increases. The expected number of customer call that we would service in the first year is between 1200-1300 i.e. 100 calls per month, and the expected revenue at the end of the first year of operation is around 6, 50,000 7, 00,000. It is expected that the customer would be mostly from the upper middle class and higher income groups during the first year, as the average fees that would be charged per visit would be around Rs 500. Small scale offices which do not have full-time employee to take care of their electrical, carpenting, etc. work are also expected to contribute heavily during the first year of operation.

Marketing Strategy
The marketing efforts will be concentrated in Surat city only. The overall marketing budget for the first year of operation will be Rs 50000. The first marketing technique that would be used is handheld pamphlet that would be distributed throughout Surat city at different time of the year. Pamphlet would be distributed throughout the year, i.e. once every month but the location of distribution would be different each month so as to cover the entire city within the budget. The cost of printing the pamphlet is Rs 400 per 1000 copies, and we would be printing 4000 copies every month. Therefore, Rs 2000 would be spent each month for pamphlet printing and Rs 19200 for the first year. There are seven major zones in Surat city, each would be covered each month, and after the Page | 5

seventh month, five zones would be re-targeted depending upon the customer call from each area. The second form of marketing technique that would be used is advertisement in the local newspaper. The said advertisement costs Rs 5000 per advertisement. We would be giving advertisement in the local newspaper every four months and hence incur a cost of Rs 15000 for the first year. This form of advertisement would help in targeting the entire city at one go. A part of the remaining amount would be used to give advertisement in the local cable channel. This would serve as a support to the other marketing efforts as people tune in to local cable channel to get news about their city. The last form of advertisement would be sticking posters of the firm, giving details of the services that we offer at various locations around the city. Areas like railway station, bus station, bus stops, vegetable market, etc. would be targeted as there are a lot of people all the time.

Promotional Offer
As a means to boost the marketing efforts a combo offer would be provided the customer which use two or more services from the firm. For eg. if a customer calls us and agrees to receiver services of electrical and painting work, than a discount of 10% would be provided to them on the total bill. A discount of 10% would be fixed and would be provided to all customer utilising two or more services. Through this scheme even the minute work which the customer thought doesnt need attention would be converted.

Risk Factors
The main risk facing the firm is the psychological barrier of the customer. Traditionally, Indians are accustomed to doing household works themselves and seldom call for expert help in such matters. This situation is changing gradually but the readiness of the Indian customer to pay Rs 500 for such household work is still to be tested. The other risk or threat comes from the traditional electricians, painters, carpenter, etc. Though they are seldom available now-a-days but people who are in contact with them on a regular basis would be hesitant to call a specialised firm for the same job citing trust or cost issues.

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Type of Unit & Site Selection

Name of Unit Address of Unit Type of Unit Techno-economic selection

SUPERMAN HANDYMEN PVT. LTD. A-105, New Bombay Market, Near Sahara Gate, Surat Service reason for site Surat being Fourth fastest Growing city in the World. The city has good public transport facilities and less traffic problem because of flyover. Many transport company exist so ready and fast transportation is done Urban population of the Surat is more than 50 laces. There is huge demand of the Handyman Service because city has more than 13 lakhs houses and 3.5 lakhs small and large business units approximately There is no any Organized Unit of Handyman service There exist scope for future expansion. There is no shortage of water supply There is no electricity interruption because of Torrent Power Large number of Banks

Requirement of Office Space (Square Feet)

800

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Cost of project
The cost of project has been estimated at total Rs. 273000. Particulars Electrician Tools Kit Plumbers Tools Kit Carpentry Tools Kit furniture Computer and Printer Telephone and Mobiles Motorcycles Advertisement Expenditure Preliminary Expenses Cash TOTAL

Amt. 16000 20000 12000 20000 30000 5000 60000 50000 10000 50000 273000

Means of Finance
Promoters Contribution

Promoter Jignesh Mavani Ketan Khandelwal Mohtaseem Shaikh TOTAL 300000 300000 300000 900000

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Manpower requirement

Sr. No 1 2

Particulars Board of Directors Employees

Number of person 3 4

Salary per month Yearly 36000 432000 36000 432000

There is increment of Rs.1000 in the monthly Salary of each person at the end of year.

HR Policy
Employees are flesh and blood of any organisation and thus the organisation endeavours to maintain harmonious relationships with its employees. Considering employee health and safety as an important perspective, organisation has taken insurance for its employees if in any case some accident happens while performing the job work. Also enough care has been taken to ensure that employee adequately earns a living wages for himself and his family, as the living cost increases year on year, there is an increment in the salary of Rs 1000/m for each year. In addition to these benefits the organisation will continuously try to maximize employee welfare as and when needed with the changing times. Any new employee would be recruited only after carrying some tests as per the relevant field to ensure that the person is well equipped with knowledge and can handle the work effectively, efficiently and safely.

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Administrative Expenses
Particulars
Repairing and Maintenance Stationary Salary Office Rent Joint insurance premium Electricity Bill Telephone Bill Fuel Exps Others exps 10000 5000 864000 120000 10000 9000 7000 36000 24000 12000 5500 984000 132000 10000 10000 7500 40000 28000

Amount
14000 6000 1104000 144000 10000 11000 8000 45000 32000 16000 6500 1224000 156000 10000 12000 8500 50000 36000 18000 7000 1344000 168000 10000 13000 9000 55000 40000

BEP (No. of calls required)

YEAR
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

BEP call per year

512 576 641 708 774 1106 1196 1285 1375 1465

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Projected Financial Statements

Assumptions
1 2 3 4 5 6 7 Tax Rate Revenues are generated at the end of operations No of working days Expenses are multiplicated in term of multiples of hundreds. Yearly increment on salary of employees Interest received on investment Depreciation counted on SLMethod urgent calls monthly
10 10 10 20 20 30 30 30 30 30

30% 300 12000 10% 20%

Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Calls per day

1 1.5 2 3 3.5 6 6 6.5 6.5 7

Revenues
660k 1050k 1380k 2100k 2430k 4140k 4140k 4470k 4470k 4800k

No. of employees 4 4 4 4 4 8 8 8 8 8

Revenue Structure
Electrical Plumbing Carpenting Painting Minor Major Total 200 500 700 150 400 550 150 400 550 100 300 400

Assuming 1 call per day from each service and segment viz. major and minor
Urgent call service will be charged as Rs 500 per call

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Cash flow statement of SUPERMAN HANDYMEN PVT. LTD. For the year ended March 31. 2015
A. CASH-IN-FLOW
Opening cash 1. Eq. capital 2. Bank loan 3. revenue 4.Interest Received 5. sale of investment 660000 1050000 20000 200000 1380000 2100000 2430000 60000 900000 52000 93000 99000 80000

2016

2017

2018

2019

TOTAL B. CASH OUT FLOW

1. Purchase of office 2. Purchase of furniture 3. Purchase of ele. Tools. Kit 4. Purchase of Plumber toolkit 5. Purchase of Cap. Toolkit 6. Purchase of computer & Printer 7. Purchase of telephone and mobiles 8. Purchase of motorcycles Office rent Repairing and Maintenance Stationary salary Electricity Bill Telephone Bill Others Exps fuel exps Preliminary exps Advertising Expenditure tax paid Joint insurance INVESTMENT

1560000

1322000

1473000

2199000

2570000

20000 16000 20000 12000 30000 5000 60000 120000 10000 5000 864000 9000 7000 36000 24000 10000 50000 163020 10000 200000 10000 10000 10000 600000 10000 700000 132000 12000 5500 984000 10000 7500 40000 28000 144000 14000 6000 1104000 11000 8000 45000 32000 156000 16000 6500 1224000 12000 8500 50000 36000 168000 18000 7000 1344000 13000 9000 55000 40000

TOTAL NET CASH FLOW

1508000 52000

1229000 93000

1374000 99000

2119000 80000

2527020 42980

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Cash flow statement of SUPERMAN HANDYMEN PVT. LTD. For the year ended March 31. 2020
A. CASH-IN-FLOW
Opening cash 1. Eq. capital 2. Bank loan 3. revenue 4.Interest Received 5. sale of investment 4140000 130000 4140000 130000 4470000 240000 4470000 380000 4800000 520000 42980 46460 108660 172960 107360

2021

2022

2023

2024

TOTAL B. CASH OUT FLOW

1. Purchase of office 2. Purchase of furniture 3. Purchase of ele. Tools. Kit 4. Purchase of Plumber toolkit 5. Purchase of Cap. Toolkit 6. Purchase of computer & Printer 7. Purchase of telephone and mobiles 8. Purchase of motorcycles Office rent Repairing and Maintenance Stationary salary Electricity Bill Telephone Bill Others Exps fuel exps Preliminary exps Advertising Expenditure tax paid Joint insurance INVESTMENT

4312980
1300000 50000 40000 50000 30000 30000 10000 60000 30000 10000 2136000 14000 10000 60000 80000 100000 236520 20000

4316460

4818660

5022960

5427360

34000 13000 2304000 15000 11000 70000 90000

38000 16000 2472000 16000 12000 80000 100000

42000 19000 2640000 17000 13000 90000 110000

46000 22000 2808000 18000 14000 100000 120000

550800 20000 1100000

491700 20000 1400000

564600 20000 1400000

547500 20000 1600000

TOTAL NET CASH FLOW

4266520 46460

4207800 108660

4645700 172960

4915600 107360

5295500 131860

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Profit and Loss A/c of SUPERMAN HANDYMEN PVT. LTD. For the year ended March 31. 2015 A. INCOME
1. Revenue 2. interest received 660000 1050000 20000 1380000 2100000 2430000 60000

2016

2017

2018

2019

TOTAL

660000
4000 3200 4000 2400 6000 2500 6000 2000 10000 10000 5000 864000 120000 10000 9000 7000 36000 24000 1125100 -465100 -465100

1070000
4000 3200 4000 2400 6000 2500 6000 2000 10000 12000 5500 984000 132000 10000 10000 7500 40000 28000 1269100 -199100 -199100

1380000
4000 3200 4000 2400 6000 6000 2000 10000 14000 6000 1104000 144000 10000 11000 8000 45000 32000 1411600 -31600 -31600

2100000
4000 3200 4000 2400 6000 6000 2000 10000 16000 6500 1224000 156000 10000 12000 8500 50000 36000 1556600 543400 163020 380380

2490000
4000 3200 4000 2400 6000 6000 2000 10000 18000 7000 1344000 168000 10000 13000 9000 55000 40000 1701600 788400 236520 551880

B. EXPENSES
2. Depreciation of furniture 3. Depreciation of ele. Tools. Kit 4. Depreciation of Plumber toolkit 5. Depreciation of Cap. Toolkit 6. Depreciation of computer & Printer 7. Depreciation of telephone and mobile 8. Depreciation of motorcycles preliminary exps written off Advertising Exps written off Repairing and Maintenance Stationary salary Office Rent Joint insurance premium Electricity Bill Telephone Bill Fuel Exps Others exps TOTAL

PBT Provision for tax PAT

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Profit and Loss A/c of SUPERMAN HANDYMEN PVT. LTD. For the year ended March 31. 2020 A. INCOME
1. Revenue 2. interest received 4140000 130000 4140000 130000 4470000 240000 4470000 380000 4800000 520000

2021

2022

2023

2024

TOTAL

4270000
10000 8000 10000 6000 6000 2000 12000 20000 30000 10000 2136000 20000 14000 10000 80000 60000 2434000 1836000 550800 1285200

4270000
10000 8000 10000 6000 6000 2000 12000 20000 34000 13000 2304000 20000 15000 11000 90000 70000 2631000 1639000 491700 1147300

4710000
10000 8000 10000 6000 6000 2000 12000 20000 38000 16000 2472000 20000 16000 12000 100000 80000 2828000 1882000 564600 1317400

4850000
10000 8000 10000 6000 6000 2000 12000 20000 42000 19000 2640000 20000 17000 13000 110000 90000 3025000 1825000 547500 1277500

5320000
10000 8000 10000 6000 6000 2000 12000 20000 46000 22000 2808000 20000 18000 14000 120000 100000 3222000 2098000 629400 1468600

B. EXPENSES
2. Depreciation of furniture 3. Depreciation of ele. Tools. Kit 4. Depreciation of Plumber toolkit 5. Depreciation of Cap. Toolkit 6. Depreciation of computer & Printer 7. Depreciation of telephone and mobile 8. Depreciation of motorcycles preliminary exps written off Advertising Exps written off Repairing and Maintenance Stationary salary Office Rent Joint insurance premium Electricity Bill Telephone Bill Fuel Exps Others exps TOTAL

PBT Provision for tax PAT

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Balance sheet of SUPERMAN HANDYMEN PVT. LTD. As on March 31.

Particulars
A. SOURCES OF FUND 1. Shareholder's Funds eq. capital reserves and surplus 2. Secured loan 3. current liabilities & provision Pro. For taxation Accu. Depreciation 28100 56200 81800 163020 107400 236520 133000 900000 900000 900000 900000 900000 236460

2015

2016

2017

2018

2019

TOTAL
B. APPLICATION OF FUND 1. Fixed assets office furniture Electrician Tools. Kit Plumber toolkit Carpentery Toolkit computer & Printer telephone and mobiles motorcycles 2. INVESTMENT 3. Current assets, loans, & advances cash 4. Miscellaneous assets Preliminary exps Advertising Expenditure 5. P&L A/c (loss)

928100

956200

981800

1170420

1505980

20000 16000 20000 12000 30000 5000 60000 200000 52000 8000 40000 465100

20000 16000 20000 12000 30000 5000 60000 0 93000 6000 30000 664200

20000 16000 20000 12000 30000 5000 60000 0 99000 4000 20000 695800

20000 16000 20000 12000 30000 5000 60000 600000 80000 2000 10000 315420

20000 16000 20000 12000 30000 5000 60000 1300000 42980 0 0 0

TOTAL

928100

956200

981800

1170420

1505980

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Balance sheet of SUPERMAN HANDYMEN PVT. LTD. As on March 31.

Particulars
A. SOURCES OF FUND 1. Shareholder's Funds eq. capital reserves and surplus 2. Secured loan 3. current liabilities & provision Pro. For taxation Accu. Depreciation 550800 84000 491700 138000 564600 192000 547500 246000 629400 300000 900000 1521660 900000 2668960 900000 3986360 900000 5263860 900000 6732460

2020

2021

2022

2023

2024

TOTAL
B. APPLICATION OF FUND 1. Fixed assets office furniture Electrician Tools. Kit Plumber toolkit Carpentery Toolkit computer & Printer telephone and mobiles motorcycles 2. INVESTMENT 3. Current assets, loans, & advances cash 4. Miscellaneous assets Preliminary exps Advertising Expenditure 5. P&L A/c (loss)

3056460

4198660

5642960

6957360

8561860

1300000 50000 40000 50000 30000 30000 10000 120000 1300000 46460

1300000 50000 40000 50000 30000 30000 10000 120000 2400000 108660

1300000 50000 40000 50000 30000 30000 10000 120000 3800000 172960

1300000 50000 40000 50000 30000 30000 10000 120000 5200000 107360

1300000 50000 40000 50000 30000 30000 10000 120000 6800000 131860

80000 0

60000 0

40000 0

20000 0

0 0

TOTAL

3056460

4198660

5642960

6957360

8561860

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