Mbeya Knitwear Company Ltd
Mbeya Knitting Company Ltd.
The company has been knitting cardiganis, pullovers, slipovers and scalfs since the begining of this year. Its initial success and the large size of its market have encouraged it to double its capacity. It therefore plans to buy three more knitting machines and their accesories in order to satisfy a larger part of market demand.
Facts
2007
| Two years ago: | |
| Last year: | |
| This year (forecast): | 23,000 |
| Year 2 (forecast): | 49,000 |
| Year 3 (forecast): | 70,000 |
| Two years ago: | |
| Last year: | |
| This year (forecast): | 4,200 |
| Year 2 (forecast): | 15,000 |
| Year 3 (forecast): | 25,000 |
| Two years ago: | |
| Last year: | |
| This year (forecast): | 12 |
| Year 2 (forecast): | 15 |
| Year 3 (forecast): | 15 |
Finance needed
| Finance needed for fixed assets (buying of machines, buildings, ...) | 20,000 |
| Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) | 30,000 |
| Total finance needed (US$) | 50,000 |
How do you expect this to be financed? Please note: the total amount mentioned here should be equal to the total finance needed at the previous question.
| Own Contribution in cash | 4,000 |
| Loans (debt) | 26,000 |
| Share capital that you seek from investors (equity) | 20,000 |
| Other sources | 0 |
| Total finance needed (US$) | 50,000 |
The Business
Cardigans, Pullovers, Slipovers, vests, scarfs.
The need for people to keep warm during the cold season.
I will make the product by knitting using imported polyacryl yarns of defferent colours.
I will reach my target market by personal representation, delivery of samples and collecting orders.
To schools and armed forces.
There is no significant procedure of sweaters in Tanzania. There are ony cottage knitters who use desk top hand operated knitting machines of very limited capacity and whose products are of doubtful quality; they are not organized and do not constitute a real threat to my business.
My product is distinctive and is heavy enough to meet the need for which it is made and is durable, unlike some of the imported stuff and the hand made garments; further my products are made to order, with proper size and colour specifications, unlike the mass-produced knitwear made by small knitters.
The finishing is better than the products of my competitors in that there is a lining on every seam.
I will ensure the growth of my business by proper and timely maintenance of machines and by good finance management.
The Entrepreneur & Management
One of the two directors of Mbeya Knittwear Ltd has tertiary education and was trained in Sweden and in the United States in the field of knitting. The other partner has a University degree in Business Administration.
Our experience in entepreneurship is more than ten years long; in knitting it is one year of considerable success.
We are the owners of the business, we are not mere employees, and therefore we have the necessary commitment to make it a success.
I will spend eighty percent (80%) of our working time.
Development
Socially by satisfying the need for people to keep warm. Our product is made of synthetic material and therefore does not demand much from the envirnment.