Business Proposal

Sajilo Rent
Bharatpur-10, Chitwan

Name of Entrepreneur: Aashish Sharma and Dristi

Regmi

Name of Business/Idea: Sajilo Rent

Address: Bharatpur-10, Chitwan

Table of Contents:

Date: 2080/04/14
Part I: Business Description..........................................................................................
1. About the Business/Idea.......................................................................................
2. Purpose (WHY are we in business?)....................................................................
3. Vision (WHAT does success look like?).............................................................
4. Mission (HOW will we get there? WHO will we serve and how will we do
it?):.............................................................................................................................
5. Values (Who are we?)............................................................................................
6 . Value Proposition..................................................................................................
Part II: Market and Industry Analysis.........................................................................10
1. Customer Segmentation and Target Market......................................................10
2. Porter’s Five Forces:..........................................................................................12
3. SWOT Analysis:................................................................................................15
4. Competitor Analysis:.........................................................................................17
5. Marketing Mix:..................................................................................................18
Part III: Product or Service Being Offered:.................................................................20
Part IV: Organization and Management......................................................................21
1. Organizational Structure:...................................................................................21
2. Team Members..................................................................................................22
Part V: Operational Plan..............................................................................................23
1. List your Operations Activities..........................................................................23
2. Create a Production/Service Flow Chart............................................................24
Part V: Business Model Canvas..................................................................................25
Part VI: Financials.......................................................................................................26
1. Required Fixed Assets (Machine/Furnitures/Buildings)....................................26
2. Depreciation on Fixed Assets:...........................................................................27
3. Direct Cost:........................................................................................................28
4. Other Indirect Cost:............................................................................................29
5. Cost per Unit:.....................................................................................................30
6. Required Working Capital:................................................................................30
7. Total Required Capital:......................................................................................31
8. Sources of Capital:.............................................................................................31
 9. Income Statement:..............................................................................................32
10. Funding and Use of Fund:..............................................................................33
11. Break-Even Point (BEP):................................................................................33
12. Return on Investment (ROI):..........................................................................34

Part I: Business Description

1. About the Business/Idea

 Sajilo Rent, Chitwan , Online Housing Rental

 Connecting Landlords and Tenants

 Property Rental Industry/ Resident Rental Service

 Our target customers are homeowners who are seeking a convenient and
reliable way to find tenants for their residential properties. Additionally, we
serve busy individuals with demanding work and life schedules who are
looking for a reliable and efficient platform for their rental needs.
We also serve homeowners and tenants with specific requirements and criteria
that need to be met.

 Our solution offers Homeowners an easy and reliable platform to manage

their properties remotely, saving them time and excluding the need for
physical visits. We provide advanced search filters and personalized
recommendations for busy individuals to find suitable tenants or rental
properties quickly. Our platform asks homeowners and tenants to specify
their specific requirements if any, to ensure a better match. For trust and
safety measures we include user reviews and ratings, creating a secure rental
environment.

 Our solution focuses on convenience, time-saving, requirement matching,

reliable & efficient option ensuring trust and safety for the best rental
experience. We intend to provide better service and peace of mind to
 homeowners and tenants.

 Our revenue streams are:

 Commission per transaction

 Google AdSense

 Leveraging artificial intelligence and machine learning algorithms to help

improve the overall user experience.
 User-friendly interfaces, faster search capabilities
 Personalized recommendations based on user preferences and behavior.
 Incorporating filters or categories for eco-friendly properties, catering to the
preferences of environmentally-conscious renters.
 We go on expanding our services to major cities like Butwal, Biratnagar,
ktm, chitwan and where the demand for online housing rental platforms is
high.
 We plan on Diversifying Property Types. Along with traditional residential
properties, we could explore adding other property types to our platform,
such as commercial spaces, vacation rentals, or short-term stays.
 Partnerships with Property Managers and Developers, forming strategic
partnerships and collaborations with property management companies, real
estate agencies to increase the rental listings on platform.
 2. Purpose
 The underlying reason or motivation for starting an online housing rental
business, Sajilo Rent is to address the gap and challenges present in the
traditional rental market and provide a convenient, transparent, and user-
friendly platform for both property owners and tenants.

 Many property owners and landlords struggle to find suitable tenants for
their rental properties due to limited local market.
 Potential tenants face difficulties in finding the rental property that meets
their preferences and requirements, often leading to time-consuming
searches.
 Lack of Information: In the traditional rental process, there is limited access
to property information, creating confusion in making informed decisions.
 Ineffective communication among property owners and rent seekers.

 Sajilo Rent offers a more efficient and convenient rental process for both
landlords and tenants.
 With various property listings, communication, and applications, we reduce
the time and effort required for both parties
 Sajilo Rent offer detailed property listings, and reviews, providing greater
transparency to renters and building trust between parties.
 The platform's search filters and personalized recommendations will lead to
better tenant-landlord matches, increasing tenant satisfaction and reducing
turnover rates.

3. Vision
We aim to revolutionize the rental process, benefiting customers, and society by
improving the efficiency, convenience, and transparency of the property rental
industry.

WE aim to achieve a significant market share in the online housing rental

industry, becoming one of the leading platforms. Success would be measured by
high levels of user engagement, with both landlords and tenants actively using the
platform. Positive feedback from customers, in reviews and ratings, would be a
crucial measure of success. Leading to positive word-of-mouth referrals and
increased brand value.

We aspire to expand our services to new regions, and cities to attract a broader
user base and tap into growing rental markets.

Technology Advancements: We will be continually improving our technology,

adapting to emerging trends like virtual reality property tours and AI-driven user
experiences.

Enhanced Services: We aspire to offer additional services beyond property rental,

such as property management solutions, relocation support for new renters and so
on.

Sustainability Initiatives: We might set goals to promote sustainability within the

rental service by encouraging environmentally-friendly housing options and
supporting green initiatives.

Envisioning Business Evolution and Growth:

Over time, we will evolve and grow in several ways:

We embrace new technologies and will adapt them to improve the rental
experience, such as AI-driven property recommendations, chatbots for customer
support, and smart home integration.

National Expansion: We could expand into national markets, to benefit needs and
preferences of renters in nation.

The platform will built partnerships with real estate agencies, property developers,
and other industry players to expand its property listings and offer additional
services.

We will explore social impact initiatives, such as supporting affordable housing

projects or partnering with non-profit organizations to address housing needs and
problems in communities.

4. Mission
Our mission is to revolutionize the rental experience by providing a seamless,
transparent, and user-focused online platform that connects property owners with
prospective tenants, by matchmaking them based on their criteria’s and
requirements.

How will we get there?

Innovative Technology: We will use and adapt to cutting-edge technologies.

Providing a user-friendly and personalized rental platform.

User-focused Platform: We will place our users at the core of our decision-making
process, focusing on enhancing their experience and benefiting them, best
customer support, and continuous feedback collection.

Diverse Property Listings: We will work hard and smart to expand our property
listings to include a diverse range of rental options, benefiting various
requirements and housing needs.

Strategic Partnerships: We will collaborate with property managers, real estate

agencies to increase our property range and provide added value to our users.

Social media: We will fully use social media for our additional promoting tools.
Collaborating with social media influencers to increase our reach in wider
customers.

What specific actions, strategies, or approaches will we employ to fulfill our

purpose?

Continuous Innovation: We will invest in research and development to stay

updated to technological advancements and provide the best rental platform
service Marketing and Awareness: We will lunch targeted marketing strategies to
raise awareness about Sajilo Rent to attract user base from various backgrounds.

Customer Support: Our dedicated customer support team will be available to help
and inform users continuously, ensuring a smooth rental experience and resolving
any issues.

What are the key objectives and milestones that we aim to accomplish along the
way?

Within the two year of operation, we aim to achieve a significant user’s rate, with
a substantial number of landlords listing their properties and a wide range of
potential tenants searching for rentals.

Within three/four years, we plan to expand our services to new -major cities,
providing rental solutions and diversifying our property inventory.

Regularly gathering user feedback and aiming for customer satisfaction, we aim to
maintain positive ratings and reviews, reflecting the value of our platform. By
year two/three year, we aim to establish partnerships with real estate agencies,
solidifying our position in the industry. By focusing our mission and staying
committed to our values, we will continuously work towards transforming and
bringing innovation to the real estate market and will create lasting value for our
users and society.
 5. Value Proposition

The specific problem that our service address for customer is stressful and
annoying process of offline renting and by that process not finding a perfect
rental.
Our service connects rent seeker and house owner online by matchmaking
model so people can give their requirements and get many matches according to
their requirements.
Our service provides match making model so user shouldnt waste their precious
time. By giving less time user can find thier perfect rentals and house owner.
We are using narrow AI in our service so that chances of error will be less while
finding a rentals and house owner.we will recommended rent seeker a
appropriate property and property owner by percentage matched according to
their requirements.
Our targeted customer have a problem of finding appropriate for them. So we
have a service thats shows appropriate results to the user. So our service align
with our targeted customer. Rent seeker interface looks like:
Property owner interface looks like:
 1.Customer Segmentation and Target Market

Our target customers are of various age groups, including young students, working
professionals, families, and seniors looking for rental properties.
Our platform's target audience include males and females and LGBTQ communities,
as rental needs are not gender-specific.
WE target range of income levels, offering affordable options for students and
young professionals, as well as luxuries properties for higher-income individuals
and families.
Platform's user base could consist of individuals, from students seeking off-campus
housing to professionals relocating for work.

Location: Target market is influenced by the locations focusing on urban centers and
regions with high rental demand.
Climate: Climate conditions might be a factor, as certain regions could attract more
renters during specific seasons or due to weather preferences.
Urban or Rural: We will primarily target to urban areas, where rental demand is
typically higher, but we might also consider specific rural regions with unique rental
needs.

Psychographic Attributes:
Our platform consider, as urban lifestyle seeking for suitable places to rent, families
seeking spacious homes, or families looking for community-oriented housing.
Target customers' values might influence preferences for eco-friendly or sustainable
housing options.
We take into account interests like criteria, requirement, cultural venues,
workplaces or educational institutes.

Behavioral Patterns and Preferences:

Understanding the frequency of moves and the average rental period can help us
manage and provide our services to meet customer expectations.
Our brand loyalty might be observed by the effectiveness of our services and
marketing efforts. Analyzing user interactions with the platform can reveal
preferences for our service and other features.

Specific Customer Segments:

We will identify distinct customer segments, such as students seeking budget-
friendly rentals, professionals looking for convenient locations, or seniors interested
in age-appropriate communities.

Reaching and Engaging Target Customers:

We will effectively reach target customers through digital marketing channels such
as search engine advertising, social media, email campaigns, and collaboration.
Customer service and communication styles can help us to appeal to the specific
needs and requirement of different customer segments.

Impact of External Factors:

We will keep a close eye on industry trends, economic changes, and cultural shifts to
evaluate how they might impact customer behavior and rental demand and to adapt
with the need.

Continuous Monitoring and Adaptation:

We can use customer feedback to continuously monitor and update, allowing us to
adapt and develop our marketing strategies and services accordingly.

Part II: Market and Industry Analysis

 6. Porter’s Five Forces:

Supplier Power:
As we are service based company, we don’t have suppliers.
Buyer Power: Threat of
Our buyers will pay if their problem
new are solved. There is no switching costs for
buyer. Buyers has no influence on pricing. No there is not any possibility of
entrants:

Bargai Rivalry Barg

ning among ainin
backward integration.

Competitive Rivalry:

There are 3 competitors in the market. Our product differentiation is high with our
competitor. As there are 3 competitor, three of them have different UI interface,
working cultures, business model, and revenue model. It’s difficult to exit because
it will take a medium investment to start so it need to be recovered. It is difficult
to enter because it takes a lot of research for market analysis and customer
segment especially in this field.

Threat of New Entrants:

It takes a lot of expertise in this field for the new entrants. New entrants can come
and start but it’s difficult for them to crack this industry without an expertise. As
we need to adapt and continuously change as the trends to crack this industry. Yes
it takes a capital investment to enter the market. No there are not any established
brands that restrict new entrants. If you can crack the market, then you are the
king of this industry.

Threat of Substitutes:
There are alternatives services available to customers. Some are there in online
renting platform but their services are not well managed like servers down, low UI
interface, lack of convenience, etc. People want an online easy to use platform that
is well managed. If substitutes will be good enough as us then, it won’t be much
difficult to switch to substitutes for customers, but it requires technological
advancements because customers have a habit of using our service for long.
3. SWOT Analysis:

STRENGTHS WEAKNESSES
It will be easy to use. People can just give The weaknesses within our business
their requirements, swipe to get their is , many people are going abroad for
matches according to their requirements. jobs and studies so it’s difficult for us
We are using match making model in our to find rent seekers for a long term.
platform as like in dating apps. Our easy Yes there is a gap in skills, it takes an
to use and unique platform can attract AI engineers, coders, accountants to
many users so it is our strength. Many make our dream into reality. So
users’ equals to many signups, many finding a trustworthy team can be
signups equals to service to more people. difficult for us in our initial phase. Our
There is a problem in renting industry. So competitor are also facing the same
we will be focusing on building a problem of people going to abroad and
platform to help people. skilled and trustworthy manpower to
be with us. These weaknesses can lead
to less customers and low chances of
create a perfect renting site.

OPPORTUNITIES THREATS
As real estate is going to be boom in No the demand for our service won’t
upcoming years so there is a lot of be affected by changes in consumer
chances to grow in these coming years.as preferences or behaviour because
 many people are using digital media so it people of urban areas completely will
will helps us to grow our business. Yes, take internet access and go digitalize
people using internet don’t know about for their works so it will be good for us
online renting site as it is newly started in to grow. No, there are not new or
our country, we can aware them about existing competitors that pose a threat.
our service so they can convert to our In my opinion, No, there are not such
customers. Yes, we can collaborate with technological advancements disruptive
content creators for marketing that can innovations that can disrupt the
leads to more traffic to our site. Yes industry. Till now, there are not any
changes in regulations can benefit our economic, political, or environmental
business by as Kathmandu metropolitan factors that can impact the business
city has created their own apps for negatively.
corporate works so other metropolitan
and municipalities will regulate the same
in coming years. So it will make a habit
for people to do more works through
online so people will check out our site
and use our services.

4. Competitor Analysis:
Competitor analysis is a critical component of a business plan as it involves
evaluating and understanding the strengths, weaknesses, strategies, and market
positioning of your competitors. It helps you identify opportunities, anticipate
challenges, and develop effective strategies to differentiate your business in the
marketplace.

Criteria Competitor 1 Competitor 2 Competitor 3

Product/Service Ghar jagga Ghar jagga Hamro bazar

sansar Nepal

Price 10% 10% 10%

Brand It is offering It has more It is an ecommerce site
Positioning both sale and options of that has a lot of things for
rent service of shutter, land sale and has renting
land, house to house, services too.
their site. office ,hotel,
apartments
restaurants, etc.
Strengths There are not More options. More audience.
chitwan based
site.

Weaknesses Property owner Low quality UI Not focused on customer

can’t add interface satisfaction
property by
themselves.
They need to go
through agents.

Target Market Mainly focused All over Nepal All over Nepal in rural
on Chitwan in urban areas and urban areas

Marketing Marketing Marketing Words of mouth

Tactics through through marketing
Facebook posts Facebook posts

Distribution Own website Own website Own website

Channels
Market Share
-

Reputation Average Good Very good

 5. Marketing Mix:

Marketing Mix Analysis

Elements
Our platform is online and easy to use and takes less
time to find the best rentals out there. Our service has
Product matchmaking model through narrow AI so it shows
relevent matches to users to make user experience better.
Our service manage rentals of houses, apartments, land,
shutter, flats, and rooms.

Price
 We take 10% flat commisions for the year.
 We will offer first 1000 customer zero listing fees.
Place (Distribution)  We will use our own websites to reach to our
customer.
 We will do digital marketing and try to enter to
urban areas like ktm, pokhara, butwal,
biratnanagar, chitwan, etc.

Promotion  We will create facebook page, instagram page,you

tube channel and create content about our product
and seasonal offers.
 We will do digital marketing like SEO,
SEM ,SMM.
 We will do online and physical events to aware
our product in different places.
 We will take online classes of different level
student to increase the converion rate from
potential customer to customer.
 Part III: Product or Service Being Offered:

S.N. Product/Service Description Unique Features Intellectual

Property/Patent
1. Renting services Connecting property owners Connecting property We can do patents
and rent seeker online owners and rent seeker about matchmaking
through matchmaking model in renting
model using narrow AI. services.
 Part IV: Organization and Management

1. Organizational Structure:
Create a more detailed version of the organization.

Co-
Founders

Finance and Marketing/

Operation/
Admin Brand
IT Manager
Officer Officer

Customer
Software UX/UI Database Office
Support
Developer Designer Administrators Assistant
Officer

Co-Founders: responsible for the overall vision, strategy, and decision-making.

IT Manager: Responsible for all the technical aspect of the service.
Software Developers: To build and maintain the app.
UX/UI Designers: To create an intuitive and user-friendly interface.
Database Administrators: To manage the app's databases and data storage.
 Customer Support: Handling user inquiries, troubleshooting, and providing assistance.
Finance and Admin Officer: Managing financial records, taxes, and budgeting, providing
general administrative support.
Office Assistant: Helping out in office day to day activity and as instructed by the
Finance and Admin Officer
Marketing and Brand Officer: Creating and executing marketing strategies to promote the
app. Handling social media, content creation, and online advertising.

2. Team Members

Name of Team Position of Team Roles and Responsibilities

Member Member
Aashish Sharma and Co-founders Responsible for the overall vision, strategy, and
Dristi Regmi decision-making.

Employee IT manager .
Responsible for all the technical aspect of the
service.

Employee Finance and admin Managing financial records, taxes, and

officer budgeting, Providing general administrative
support.

Employee Marketing and Brand Officer Creating and executing marketing strategies to
promote the app. Handling social media,
content creation, and online advertising.

Employee Software Developers To build and maintain the app.

Employee UX/UI Designers To create an intuitive and user-friendly interface..

Database Administrators To manage the app's databases and data storage.

Employee

Employee Customer Support Handling user inquiries, troubleshooting, and

providing assistance.

Employee Office Assistant Helping out in office day to day activity and as
instructed by the Finance and Admin Officer.
Part V: Operational Plan

1. List your Operations Activities

S.N. Activities Activities Details including duration of each activity

1. Setting up an office Taking an office in the rain and buying all office equipment’s.

2. Registering business Registering business named Sajilo rent at Ward and Garelu.

3. Web developing and Starting web development and designing being focused.
designing
3. Social media pages Creating social media pages on Instagram, Facebook, YouTube, tiktok.

4. Content creation Creating interesting content and Awaring target audience about our service on Facebook,
tiktok, Instagram (reels, Post) YouTube, Google Blogs, etc.
5. Digital marketing Doing online marketing about a content on YouTube Facebook, instagram.

7. Creating awareness Starting events at corporates offices and other places to create awareness.
offline
8. Completion of website Completing all the website development and designing.
process
9. Launching the Launching the website on the internet.
business
10. Expanding the Expanding the business in ktm on second year of the starting of the business.
business

Continuing the needed activities.

 2. Create a Production/Service Flow Chart
Create a production flow chart detailing every step in the production process.
Part V: Business Model Canvas

Key partners:
1. Real Estate Agencies: Collaborating with recognized real estate agents to gain access to their
property listings and maintain a consistent supply of residential units.
2. Property Owners: Collaborating with individual property owners to market their homes on
the site.
3. Payment Gateway Providers: Integrating with secure and trustworthy payment gateways to
ensure smooth transactions.
4. Customer Support Services: Hiring a competent company to handle enquiries, complaints,
and support tickets.

Key Activities:
1. Residential Property Listings: Creating an easy-to-use online platform for property owners
and agencies to market their residential properties.
2. User Authentication: Strong user authentication will be implemented to safeguard the
security and privacy of users' data.
3. Property Verification: Creating a method for validating the accuracy of property facts and
ensuring listings are genuine.
4. Marketing and Promotion: Using a variety of digital marketing tactics to attract property
owners as well as potential buyers/renters.
5. Platform Maintenance: Updating and maintaining the platform on a regular basis to ensure
optimal performance and security.

Key Resources:
1. Technology Infrastructure: Servers, databases, and software will be required for the online
platform to function properly.
2. Skilled Workforce: Engineers, developers, designers, and customer service representatives to
manage and help users.
3. Brand Identity: Through strong branding and marketing activities, we will create a
recognizable and trustworthy brand.

Value Propositions:
1. Extensive Property Options: We will provide a diversified choice of residential homes to
meet the demands and tastes of a diverse consumer base.
2. Convenience and Efficiency: We will create an easy-to-use interface for property searches,
rapid transactions, and secure payments.
3. Transparent Information: We will develop confidence with users, ensure accurate property
facts, photos, and transparent pricing.
4. Customer Support: We will provide prompt and professional customer service to handle any
concerns and increase consumer happiness.
5. Matchmaking model: We will use matchmaking model to give proper recommendation to
our users.

Customer Segments:
1. Home Seekers: Individuals and families wanting to rent a residential property.
2. Property Owners: Individuals want to rent out their home property.
3. Real Estate Agencies: Businesses looking for a digital platform to display their listings.

Customers Relationships:
1. Personalization: We will tailor user experiences by learning about their preferences and
recommending relevant features.
2. Prompt Help: We will respond quickly to user enquiries and help requests.
3. Feedback Collection: We will collect user feedback to continuously improve the platform
and services.

Channels:
1. Website: Our primary web platform through which users can access property listings and
connect with the platform.
2. Social Media and Online Ads: Using social media and online advertising to promote the
platform and reach out to a wider audience.

Cost Structure:
1. Technology Development: Expenses associated with the creation and maintenance of the
platform.
2. Marketing and Advertising: Set up funds to promote the platform through digital marketing
channels.
3. Staffing: Salaries and benefits for the platform management and customer support
employees.

Revenue Streams:

1. Transaction Fees: We will earn a percentage of the income from each successful property
sale or rental handled through the platform.
2. Google AdSense: we will earn some amount from Google AdSense from our website.
3. Affiliate marketing: We will earn some amount from Affiliation.
Part VI: Financials
1. Required Fixed Assets (Machine/Furnitures/Buildings)

Particulars Amount

Furniture's & Fixtures 150000

Office Equipment 150000

Computers and Printers 100000

Machinery & Equipment 100000

Intangible Assets (Software) 800000

Total 1300000

Revenue:

Year 1

Bharatpur, Ratnanagar, Butwal, Ktm 1

Estimated Number Service Estimated
Rent of Deal Reventure Rent

2BHK Flat 35000 250 8750000 35000

House- 1 Storey 25000 100 2500000 25000

Hourse- 2 Storey 25000 150 3750000 25000

Shutter-Prime Location 50000 150 7500000 50000

Shutter-Off Location 25000 150 3750000 25000

Revenue( Bharatpur, Ratnanagar,
Ktm,,Butwal) 26250000
  Commission=20% of 26250000
=5250000
 1. Depreciation on Fixed Assets:
S. Details of Rate Opening Purchase Sales Total Deprecia Closing
N. Assets of Balance During during Deprecia tion (6 = Balance
Depre (2) the year the year ble Asset 5* 1) (5-4)
ciation (3) (4) (5=2+3-4)
(%)
(1)

1. Furnitures & 25% 0 150000 0 150000 37500 112500

Fixtures

2. Office 25% 0 150000 0 150000 37500 112500

Equipment

3. Computers 25% 0 100000 0 100000 25000 75000

and Printers

4. Machinery & 15% 0 100000 0 100000 15000 85000

Equipment

5. Intangible SLM(5 0 800000 0 800000 160000 640000

Assets years)
(Software)

Total 1300000 275000 1025000

Year 1:

Depreciation for intangible assets(SLM) =800000/5=160000

 2. Direct Cost:

Direct Materials (A): (Raw materials)

S.N. Particulars Quantity Rate per Amount
Quantity

Total (A) Nil

Direct Labour(B):
S.N. Particulars No of Rate per Amount
Employee/W Quantity
orker
1. Customer support 2 25000 600000
2. Technical support 2 35000 840000
Total (A) 1440000

Total Direct Cost [Direct Materials (A) + Direct Labour Cost (B)] 1440000

3.Other Indirect Cost:

Administrative expenses:
Category Monthly Amount Annual Amount

Office rent 30000 360000

Utilities(internet) 25000 300000

Office supplies 12000 144000

Mis.Admin(travel,phone) 13000 156000

Maintenance & others - 240000

Total 1200000

Indirect Cost:
S.N. Particulars Yearly Expenses

1. Administrative Expenses 1200000

2. Indirect Salaries(indirect labour-8 employees) 1800000

3. Server and Maintenance 600000

4. Miscellaneous 600000

Total Indirect Cost 4,200,000

3. Cost per rent(Unit):

S.N. Particulars Amount

(yearly)
1. Direct Materials: Nil
2. Direct Labour 1,440,000
3. Administrative Expenses 1,200,000
4. Indirect Labor(salaries) 1,800,000

5. Depreciation 2,75,000
6. Server and Maintenance 600000
7. Miscellaneous 600000
8. Interest Expenses (Bank loan@12%) 1740000*12
%=208800
A. Total Cost (1+2+3+4+5+6) 6123800
B. Annual Rent/ Estimated Rent (units) 800units

C. Cost per rent(in Rs): (A/B) 7654.75

D. Profit Margin (%) 20%
E. Selling Price (C+D) 9185.70

4. Required Working Capital:

S.N. Particulars Amount

1. Direct Materials 0

2. Direct Labour 1,440,000

3. Administrative Expensive 1,200,000

4. Indirect Labor salaries 1,800,000

Total Cost (1+2+3+4) 4,440,000

5. Total Required Capital:

S.N. Particulars Amount

1. Total Fixed Capital (Asset) 1300000

2. Total Required Working Capital 4440000

Total (1+2) 5740000

6. Sources of Capital:

S.N. Particulars Amount

1. Founder investment 4000000

2. Bank loan 1740000

Total 5740000
 7. Income Statement:

Particulars Schedule Amount

A

Revenue 5250000

Less:
Direct labour

(1440000)

Administrative Expenses (1200000)

Indirect labor (1800000)

B

Operating Profit/ (Loss) 810000

Less: Depreciation (275000)

C
Profit/(Loss) before Interest and Taxes 535000

Interest expenses(12%on loan)

(208800 ) -

Profit/ (Loss)before taxes D 326200

Taxes(25%) 81550 -

Profit After Taxes E 244650

8.Funding Source:
Founder investment 4000000

Bank loan 1740000

 9.Break-Even Point (BEP):

Particulars Year 1
Total Fixed Cost :
(Labour,Depreciation,Interest Expenses
etc)
2643800
Yearly Rent Revenue (Rs.) 5250000

Total Variable Cost ( Direct Labour Cost)

1440000

Contribution Margin(Rent Revenue- VC)

3810000
Break Even (%) = Total Fixed Cost / (Rent
revenue- Total Variable Cost) * 100
(2643800/3810000)*100=69.39%
BEP (in Rs.) = BEP (%) * Sales/ 100
69.39% of 5250000=3643031.496
Per Rent Selling Price (Rs.) 9815.70
BEP (in Units) = BEP (in Rs.) / Per Unit
Selling Price 3153270/9815.70=321.2476(321units)

Fixed cost:

Particulars Annual Amount

Office rent 360000

Indirect Labour 1800000

Deprecication 275000

Interest expenses 208800

Total 2643800

10.Return on Investment (ROI):

Details Year 1

Net Profit 244650

Total Capital 5740000

Return on Investment (Net Profit/ Total Capital)

* 100 % (244650/5740000)*100=4.2622%
Finacial Summary

The financial projections for the proposed business indicate a total capital requirement of NPR
5,740,000, comprising NPR 1,300,000 in fixed capital for furniture, equipment, and software,
and NPR 4,440,000 in working capital primarily for labour and operational expenses. The
funding is structured with NPR 4,000,000 from founder investment and NPR 1,740,000 in bank
financing. Projected revenue for the first year is NPR 5,250,000, derived from a 20%
commission on an estimated rental turnover of NPR 26,250,000. Key operating costs include
direct labour of NPR 1,440,000 and indirect costs totaling NPR 4,200,000, which cover
administration, salaries, maintenance, and miscellaneous expenses. Depreciation is estimated at
NPR 275,000, and annual interest on the loan amounts to NPR 208,800. After accounting for all
operating expenses and a 25% corporate tax, the net profit for the year is projected at NPR
244,650. The break-even analysis shows that the business must achieve 69.39% of its sales target
—or 321 rent units—to cover fixed costs of NPR 2,643,800. Based on these projections, the
return on investment (ROI) for the first year stands at 4.26%, indicating modest but positive
profitability as the business gains traction in its initial phase.