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This business plan explores entering the wooden stalls market in Germany, focusing on Christmas events and Oktoberfest. With detailed market research, financial analysis, and growth projections, the plan aims to establish a successful business venture in the sector.
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Robin Wood Stalls GmbH James McNally (870915) Luiz Gonzaga de Freitas Neto (871587) Master of Science in Nuclear Applications
Contents • Idea & Concept • Market research & Conditions • Form Of The Business • Investors Analysis Of The Business • Conclusion
The Idea • Many events in Germany use stalls Carnival Christmans Market
The Idea Oktoberfest Church's Party
The Idea • 2,500 Christmas markets in Germany • Revenue generated € 3-5 Billions • Worth approx. €175 Billion to the German economy as a whole
Business Concept • Manufacture and sell wooden stalls • Based in Germany • Limited company • Two owners who are also co-investors
Market Research • There are about 200,000 stalls in Germany ever year in the Christmas Markets • The mean size of a stall is approximately 3 m2 • 15% of all stalls are renewed per year • Exist 20 companies in this sector in Germany
Market Research • 915,800 hectares of forest • 27% of the surface • 30 Billion euro per year in timber sales
Conditions • 4500 m2 of stalls per year • 5 days/week, one shift of 8 hours • Selling price vary between €400 and €500 per meter square
Conditions • We intend to sell at 450 €/m2 e.f. • Christmas Market, Churches' Parties, Oktoberfest, Carnival etc. • Based in North Rhine-Westphalia
Location • Place of production: Hochsauerland We Are Here
Form Of The Business • Company with Limited Liability (GmbH) • Not a company by shares • Two Bodies: Board of Directors and Supervisory Board • The same two people will make up the Board of Directors and Owners Assembly
Form Of The Business • A Supervisory Board will be formed but with limited powers. • Every staff member will automatically become a member of the Supervisory Board • The CEO will be chosen from Supervisory Board • The CEO must be a member of the Owners Assembly
Investors Analysis Of The Business Total investment required Costs Profit calculation
Cost Calculations: Finance • A fixed loan was secured for 6.74% over 10 years
Break Even Point Break even point approximately 860 stalls
Return On Investment Approximately 12800 stalls produced, or a little over 9 years
Conclusion • After 10 years of we have a potential total dividend of € 2.987.806,33 • Potential expansion of the market as the German traditional Christmas market spreads • High fixed costs, which make business vulnerable to a downward turn in the market