handymen services

8/13/2019 Handymen Services

1/18

Superman

Handymen Services

P r o m o t e r s :

J i g n e s h M a v a n i , 1 2 F 6 1

K e t a n K h a n d e l w a l , 1 2 M 6 4M o h t a s e e m S h a i k h , 1 2 M 6 7

Proposed to:

Dr. Raju Rathod


2/18

Page | 1

ontents

1.Introduction

2.Present Status and Market Potential3.Type of Unit & Site Selection4.Cost of project5.Means of Finance6.Manpower requirement7.Administrative Expenses8.BEP (No. of calls required)9.Projected Financial Statements


3/18

Page | 2

IntroductionA 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


4/18

Page | 3

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 thejob 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.


5/18

Page | 4

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.


6/18

Page | 5

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, 50,0007, 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


7/18

Page | 6

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 costissues.


8/18

Page | 7

Type of Unit & Site Selection

Name of Unit SUPERMAN HANDYMEN PVT. LTD.

Address of Unit A-105, New Bombay Market, Near Sahara Gate,Surat

Type of Unit Service

Techno-economic reason for site

selection

Surat being Fourth fastest Growing city in theWorld.

The city has good public transport facilitiesand less traffic problem because of flyover.

Many transport company exist so ready andfast transportation is done

Urban population of the Surat is more than 50laces.

There is huge demand of the HandymanService because city has more than 13 lakhshouses and 3.5 lakhs small and large businessunits approximately

There is no any Organized Unit of Handymanservice

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


9/18

Page | 8

Cost of project

The cost of project has been estimated at total Rs. 273000.

Means of Finance

PromotersContribution

Promoter

Jignesh Mavani 300000

Ketan Khandelwal 300000

Mohtaseem Shaikh 300000

TOTAL 900000

Particulars Amt.Electrician Tools Kit 16000Plumbers Tools Kit 20000Carpentry Tools Kit 12000furniture 20000Computer and Printer 30000Telephone and Mobiles 5000Motorcycles 60000Advertisement Expenditure 50000

Preliminary Expenses 10000Cash 50000TOTAL 273000


10/18

Page | 9

Manpower requirement

Sr. No Particulars Number of person Salary per month Yearly

1 Board of Directors 3 36000 4320002 Employees 4 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, asthe 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.


11/18

Page | 10

Administrative Expenses

Particulars AmountRepairing and Maintenance 10000 12000 14000 16000 18000

Stationary 5000 5500 6000 6500 7000Salary 864000 984000 1104000 1224000 1344000

Office Rent 120000 132000 144000 156000 168000

Joint insurance premium 10000 10000 10000 10000 10000

Electricity Bill 9000 10000 11000 12000 13000

Telephone Bill 7000 7500 8000 8500 9000

Fuel Exps 36000 40000 45000 50000 55000

Others exps 24000 28000 32000 36000 40000

BEP (No. of calls required)

YEAR BEP call per year2015 512

2016 576

2017 641

2018 708

2019 774

2020 11062021 1196

2022 1285

2023 1375

2024 1465


12/18

Page | 11

Projected Financial Statements

Assumptions

1 Tax Rate 30%2 Revenues are generated at the end of operations

3 No of working days 300

4 Expenses are multiplicated in term of multiples of hundreds.

5 Yearly increment on salary of employees 12000

6 Interest received on investment 10%

7 Depreciation counted on SLMethod 20%

Year Calls per day urgent callsmonthly

Revenues No. ofemployees

2015 1 10 660k 4

2016 1.5 10 1050k 4

2017 2 10 1380k 4

2018 3 20 2100k 4

2019 3.5 20 2430k 4

2020 6 30 4140k 8

2021 6 30 4140k 8

2022 6.5 30 4470k 8

2023 6.5 30 4470k 8

2024 7 30 4800k 8

Revenue StructureMinor Major Total

Electrical 200 500 700

Plumbing 150 400 550

Carpenting 150 400 550Painting 100 300 400Assuming 1 call per day from each service and

segment viz. major and minor

Urgent call service will be charged as Rs 500 percall


13/18

Page | 12

Cash flow statement of SUPERMAN HANDYMEN PVT. LTD. For theyear ended March 31.

2015 2016 2017 2018 2019A. CASH-IN-FLOW

Opening cash 52000 93000 99000 80000

1. Eq. capital 900000

2. Bank loan

3. revenue 660000 1050000 1380000 2100000 2430000

4.Interest Received 20000 60000

5. sale of investment 200000

TOTAL 1560000 1322000 1473000 2199000 2570000

B. CASH OUT FLOW

1. Purchase of office

2. Purchase of furniture 20000

3. Purchase of ele. Tools. Kit 16000

4. Purchase of Plumber toolkit 20000

5. Purchase of Cap. Toolkit 12000

6. Purchase of computer & Printer 30000

7. Purchase of telephone and mobiles 5000

8. Purchase of motorcycles 60000

Office rent 120000 132000 144000 156000 168000

Repairing and Maintenance 10000 12000 14000 16000 18000

Stationary 5000 5500 6000 6500 7000

salary 864000 984000 1104000 1224000 1344000


Telephone Bill 7000 7500 8000 8500 9000

Others Exps 36000 40000 45000 50000 55000

fuel exps 24000 28000 32000 36000 40000

Preliminary exps 10000Advertising Expenditure 50000

tax paid 163020

Joint insurance 10000 10000 10000 10000 10000

INVESTMENT 200000 600000 700000

TOTAL 1508000 1229000 1374000 2119000 2527020

NET CASH FLOW 52000 93000 99000 80000 42980


14/18

Page | 13

Cash flow statement of SUPERMAN HANDYMEN PVT. LTD. For theyear ended March 31.

2020 2021 2022 2023 2024

A. CASH-IN-FLOW

Opening cash 42980 46460 108660 172960 107360

1. Eq. capital

2. Bank loan

3. revenue 4140000 4140000 4470000 4470000 4800000

4.Interest Received 130000 130000 240000 380000 520000

5. sale of investment

TOTAL 4312980 4316460 4818660 5022960 5427360B. CASH OUT FLOW

1. Purchase of office 1300000

2. Purchase of furniture 50000

3. Purchase of ele. Tools. Kit 40000

4. Purchase of Plumber toolkit 50000

5. Purchase of Cap. Toolkit 30000

6. Purchase of computer & Printer 30000

7. Purchase of telephone and mobiles 10000

8. Purchase of motorcycles 60000

Office rent


Stationary 10000 13000 16000 19000 22000

salary 2136000 2304000 2472000 2640000 2808000


Telephone Bill 10000 11000 12000 13000 14000

Others Exps 60000 70000 80000 90000 100000

fuel exps 80000 90000 100000 110000 120000

Preliminary exps

Advertising Expenditure 100000

tax paid 236520 550800 491700 564600 547500

Joint insurance 20000 20000 20000 20000 20000

INVESTMENT 1100000 1400000 1400000 1600000

TOTAL 4266520 4207800 4645700 4915600 5295500

NET CASH FLOW 46460 108660 172960 107360 131860


15/18

Page | 14

Profit and Loss A/c of SUPERMAN HANDYMEN PVT. LTD. For the yearended March 31.

2015 2016 2017 2018 2019

A. INCOME

1. Revenue 660000 1050000 1380000 2100000 2430000

2. interest received 20000 60000

TOTAL 660000 1070000 1380000 2100000 2490000

B. EXPENSES

2. Depreciation of furniture 4000 4000 4000 4000 4000

3. Depreciation of ele. Tools. Kit 3200 3200 3200 3200 32004. Depreciation of Plumber toolkit 4000 4000 4000 4000 4000

5. Depreciation of Cap. Toolkit 2400 2400 2400 2400 2400

6. Depreciation of computer & Printer 6000 6000 6000 6000 6000

7. Depreciation of telephone and mobile 2500 2500

8. Depreciation of motorcycles 6000 6000 6000 6000 6000

preliminary exps written off 2000 2000 2000 2000 2000

Advertising Exps written off 10000 10000 10000 10000 10000


Stationary 5000 5500 6000 6500 7000

salary 864000 984000 1104000 1224000 1344000

Office Rent 120000 132000 144000 156000 168000



Telephone Bill 7000 7500 8000 8500 9000

Fuel Exps 36000 40000 45000 50000 55000

Others exps 24000 28000 32000 36000 40000

TOTAL 1125100 1269100 1411600 1556600 1701600

PBT -465100 -199100 -31600 543400 788400

Provision for tax 163020 236520

PAT -465100 -199100 -31600 380380 551880


16/18

Page | 15

Profit and Loss A/c of SUPERMAN HANDYMEN PVT. LTD. For the yearended March 31.

2020 2021 2022 2023 2024

A. INCOME

1. Revenue 4140000 4140000 4470000 4470000 4800000

2. interest received 130000 130000 240000 380000 520000

TOTAL 4270000 4270000 4710000 4850000 5320000

B. EXPENSES

2. Depreciation of furniture 10000 10000 10000 10000 10000

3. Depreciation of ele. Tools. Kit 8000 8000 8000 8000 80004. Depreciation of Plumber toolkit 10000 10000 10000 10000 10000

5. Depreciation of Cap. Toolkit 6000 6000 6000 6000 6000

6. Depreciation of computer & Printer 6000 6000 6000 6000 6000

7. Depreciation of telephone and mobile 2000 2000 2000 2000 2000

8. Depreciation of motorcycles 12000 12000 12000 12000 12000

preliminary exps written off

Advertising Exps written off 20000 20000 20000 20000 20000


Stationary 10000 13000 16000 19000 22000

salary 2136000 2304000 2472000 2640000 2808000

Office Rent



Telephone Bill 10000 11000 12000 13000 14000

Fuel Exps 80000 90000 100000 110000 120000

Others exps 60000 70000 80000 90000 100000

TOTAL 2434000 2631000 2828000 3025000 3222000PBT 1836000 1639000 1882000 1825000 2098000

Provision for tax 550800 491700 564600 547500 629400

PAT 1285200 1147300 1317400 1277500 1468600


17/18

Page | 16

Balance sheet of SUPERMAN HANDYMEN PVT. LTD. Ason March 31.

Particulars 2015 2016 2017 2018 2019

A. SOURCES OF FUND

1. Shareholder's Funds

eq. capital 900000 900000 900000 900000 900000

reserves and surplus 236460

2. Secured loan

3. current liabilities & provision

Pro. For taxation 163020 236520

Accu. Depreciation 28100 56200 81800 107400 133000

TOTAL 928100 956200 981800 1170420 1505980

B. APPLICATION OF FUND

1. Fixed assets

office

furniture 20000 20000 20000 20000 20000

Electrician Tools. Kit 16000 16000 16000 16000 16000

Plumber toolkit 20000 20000 20000 20000 20000

Carpentery Toolkit 12000 12000 12000 12000 12000

computer & Printer 30000 30000 30000 30000 30000

telephone and mobiles 5000 5000 5000 5000 5000

motorcycles 60000 60000 60000 60000 60000

2. INVESTMENT 200000 0 0 600000 1300000

3. Current assets, loans, & advances

cash 52000 93000 99000 80000 42980

4. Miscellaneous assets

Preliminary exps 8000 6000 4000 2000 0

Advertising Expenditure 40000 30000 20000 10000 0

5. P&L A/c (loss) 465100 664200 695800 315420 0

TOTAL 928100 956200 981800 1170420 1505980


18/18

Page | 17

Balance sheet of SUPERMAN HANDYMEN PVT. LTD. Ason March 31.

Particulars 2020 2021 2022 2023 2024

A. SOURCES OF FUND

1. Shareholder's Funds

eq. capital 900000 900000 900000 900000 900000

reserves and surplus 1521660 2668960 3986360 5263860 6732460

2. Secured loan

3. current liabilities & provision

Pro. For taxation 550800 491700 564600 547500 629400

Accu. Depreciation 84000 138000 192000 246000 300000

TOTAL 3056460 4198660 5642960 6957360 8561860

B. APPLICATION OF FUND

1. Fixed assets

office 1300000 1300000 1300000 1300000 1300000furniture 50000 50000 50000 50000 50000

Electrician Tools. Kit 40000 40000 40000 40000 40000

Plumber toolkit 50000 50000 50000 50000 50000

Carpentery Toolkit 30000 30000 30000 30000 30000

computer & Printer 30000 30000 30000 30000 30000

telephone and mobiles 10000 10000 10000 10000 10000

motorcycles 120000 120000 120000 120000 120000

2. INVESTMENT 1300000 2400000 3800000 5200000 6800000

3. Current assets, loans, & advances

cash 46460 108660 172960 107360 131860

4. Miscellaneous assets

Preliminary exps

Advertising Expenditure 80000 60000 40000 20000 0

5. P&L A/c (loss) 0 0 0 0 0

TOTAL 3056460 4198660 5642960 6957360 8561860

handymen services

Documents