SKYBUS, LTD.BUSINESS FEASIBILITY PLAN.PartIV.Section 3

PRODUCTION

1. Requirements for SKYBus business

To run the proposed business the following is required:

·         Office building

In order to run the SKYBus Ltd, the company requires a building to have an office area and a warehouse or enclosed yard for parking at least two minibuses within. Because the company will provide the services around Dundrum, Tallaght, Clondalkin, Liffey Valley and Airport areas, it was decided to search for the premises within those demographic areas. Also such factor as a low price was involved during a process of selecting the building. Hence Unit 1B, Floor 1, Brookfield Enterprise Centre is, Tallaght, Dublin 24 is believed to be the office point of the best choice (Appendix III.A).

The above location is a building (60.1m²) with an enclosed backyard. The premises include the following areas: kitchen, shower room, WC, reception and outside parking.

It is decided to rent the building at Brookfield Enterprise Centre for saving the capital so to invest more into the business.

·         Vehicle(s)

SKYBus intends to obtain two used vehicles for saving the capital. Because the transportation of people is involved into a business, the 17-seats minibuses were chosen. They are to be purchased at TallaghtFord, Airton road, Tallaght, Dublin 24.

·         Website Creation and Hosting

(refer to Section I.4 - Domain Name Registration)

2. Costs for obtaining and running the business:

·         Company Registration - €70

·         Premises

The monthly rent for Brookfield Enterprise Centre costs €1,200. On obtaining the proposed premises a three-month payment policy will be applied, hence the total costs will be €3,600.

The services of the solicitor also will be required. This will include a payment of €20 for advising on genuinity of the contract.

Fit-out the premises with equipment and furniture will cost €1500.

Utilities including internet, electricity, waste management and security system - €475/month

·         Transport

The used vehicles obtained from TallaghtFord will cost €30,000

·         Road Tax Rate - €1,300/year

·         Insurance - €2,500/per vehicle

·         Liability Insurance - €97/month

·         Website Creation and Hosting

Creation  - €50

Registration - €20/year

Hosting - €99/year

·         Commercial Property Rates  - 4,340/year (refer to Appendix III.B)

- Rateable evaluation according to Valuation Office Ireland for Brookfield Enterprise Centre - €70.92

- Annual rate on valuation (2012) - 61.19

For a detailed list of all costs for obtaining and running the business refer to Appendix III.C.

aluation Officetionom Tallaght seats.artment for baggage at the back of the vehicle.

Business start-up costs

Start-up capital requirements onetime start-up expenses

Start-up expenses	Amount	Description
Advertising	€115	Using press publishing technique with Advertising.ie in such newspapers as: Irish Times, Evening Herald and Irish Independent
Insurance	€6,164/year	JF Dunne Insurances
Lease Payment	€3,600	Brookfield Enterprise Centre, Tallaght D - 24
Licence & Permit	€1,300	Road Tax
Utilities	€345/month	ESB, UPC, Panda
CO. Registration	€70	CRO
Security	€525	Alarm.ie
Office Supplies	€1,215	Obtained at Argos
Furniture	€430	For office and kitchen, purchased at Argos
Vehicles	€30,000	Ford Transit Torneo, purchased from TallaghtFord
Website	€169	BlackKnight Solution
Commercial Property Rates	€4,340	Valuation Office
Fuel	€7,500	Applegreen (for fuel usage refer to appendix III.D)
Tickets	€85	TicketPrint
Total Start-up Costs	€55,838	Amount of costs before opening

Start-up capital requirements - repeating monthly expenses

Expenses	Monthly Amount	Quarterly Amount	Description
Advertising	€60	€180	Advertising.ie
Rent	€1,200	€0	Elmfield Industrial Estate, Clondalkin, D - 22
Utilities	€345	€690	ESB, UPC, Panda
Tickets	€35	€70	TicketPrint
Fuel	€7,500	€7,500[1]	Applegreen. The amount of fuel purchased will depend on the amount of days driven (Appendix III,D).
Repairs & Maintenance	€300	€900	Local Garage, EssoPlus, Clondalkin, D22
Salaries	€13,362	€26,724[2]	Salaries paid to the 7 drivers and an office employee  (Appendix III.E)
Office Expanses	€65	€190
Loan	€786	€2,358	Loan received from AIB at the rate of 4.40% per annum (Appendix III.F)
Total Repeating Costs	€23,653	€45,974
Total Start-up Costs	€55,838	€55,838
Total Cash needed	€79,491	€101.812

3. Supplier Choice

SKYBus business will heavily depend on the vehicles transporting our customers. It is very important to keep our both minibuses in a good condition. Therefore the suppliers of fuel become our targets of interest.

The below is the list of the potential suppliers required for the running of the proposed business SKYBus. They were chosen for its brand names, where each of them exists in the global market over a long period of time as well as for the large number of refilling stations around Ireland.

	ESSO		TOPAZ	TEXACO	APPLEGREEN
Name	Esso Ireland Ltd		Energy Group Ltd	Valero Energy Ltd	AppleGreen Ireland Ltd
Location	Dublin 1 Joint Fuels Terminal, Alexandra Rd		Dublin 4 Topaz House Beach Hill Clonskeagh	First Floor, Block B Liffey Valley  Office Campus, Quarryvale Co. Dublin	Dublin 12 Block 17, Joyce Way, Park West
Product	Fuel - Diesel
Price	€150/100L		€152/100L	€153/100L	€148/100L
Delivery	ESSO provides such service as a delivery of the fuel to the site, charging extra €45 (if the order is over 500Litres)		The above Companies do not provide the delivery of the fuel, however the refuelling stations are located around the Dublin area.		APPLEGREEN provides such service as the delivery of fuel to the site. No extra fees are charged.
Quality	Each of the above suppliers comply with Directive 2009/30/EC (Low Carbon Fuel Standard)
	Esso has changed the formulation of its petrol and diesel fuels with an enhanced additive package which can help provide improved engine responsiveness and cleaner vital engine parts when compared to standard fuels				Diesel provided by Applegreen contains a mix of 5% FAME (Fatty Acid Methyl Ester) to 95% standard diesel. This B5 blend of standard fuel and biomass helps reduce carbon emissions and is suitable for use in all diesel engines.
Fuel Card	The Esso fuel Club Card is available for businesses that consume more than 200litres of fuel per year.  Gives the discounts twice a year depending on the amount of the fuel used by the business	The holders of Topaz fuel card have a bonus such as a free washing service once a month.		The owners of the Texaco Diesel Card are presented with 10Litres for free on refilling with every 1000Litres.	The fuel card holders receive 5% discount on refilling with over 1000litres a year.

Taking into a consideration the four suppliers of the fuels that are listed above, SKYBus has chosen AppleGreen because of the following factors:

·         quality of fuel - the unique formula of the diesel and its reduced implications on the surrounding (refer to Appendix III, D).

·         price - low prices provided by AppleGreen never have impact on its quality, which means the company provides its standard fuel throughout a year

·         free delivery  of fuel to the site of business with no extra fees charged;

·         the bonuses of the AppleGreen Card that give a chance for the business to save money once ordering a large amount of fuel

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[1] Due to no rides done during the first month since establishing the business, the business will require to fill the vehicles only during the month 2 and 3. Because on starting-up the business, SKYBus will already obtain the fuel for one month rides, this will mean that there will be a need in purchasing the fuel only during the third month.

[2] All job done during the first month since establishment of the company will be carried out by the owner only. Hence there will be no need in payment to the vehicle drivers and admission officer during month 1.

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