BUSINESS PLAN 'Parking Construction'
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Business Plan Description
Project idea: modern parking construction on the free areas over the central heating station (CHS).
Type of parking: above-ground multilevel.
Project location: Moscow, the Russian Federation.
Project audience: car owners aged from ** to ** years.
Equipment: automated system «PUZZLE»
Promotion and marketing: advertising posters placed on the building carcass; application of addresses on the Internet Moscow parking map; local media.
Project implementation period: * years, with the planning step in one month.
Excerpts from the Research
According to the statistics, cars are used directly only * hours a day. That’s why owners need the safe car keeping for the rest of the day.
The ratio of the car places number in Moscow parking and the number of city cars is approximately **. In the capital Central District, where the bulk of the workplaces is focused and accordingly the transport is congregated during the daytime, this indicator is decreased to 0.25. That’s why the building of new parking areas is particularly relevant for Russian capital.
Market volume of Moscow parking for mid-2014 is about *** car places and the average annual growth over the last 8 years is about *** car places.
In the structure of the Moscow parking types the above-ground single level parking lots (** %) are dominated, multilevel parking lots and garages are as follows (**% each). Underground parking lots occupy a relatively smaller share – * % of the total car places number.
In terms of parking areas deficit the car owners are forced to leave their vehicles far from the place of job frequently and get it from the parking by public transport. In the central city part the largest number of parking lots are situated near such metro station as «**», «**», «**», «**» and others.
The factors, which have a great influence on Moscow parking prices, are: location in the city (the prices in the center are higher than in suburbs) and type of parking, which directly depends on the cost of the car place constructing (** parking lots are more expensive than **). One more car place price factor is privacy. It means that only inhabitants or employees of a particular building could use the garage. The combination of these factors led to average rent car place price **-** RUB/month in the center of Moscow and **-** RUB/month in more suburbs.
The average peak parking workload is accounted for midweek – on Wednesdays (** %) and Tuesdays (** %). The peak parking workload lasts between ** h. and **h. The average parking workload on weekdays is about ** % and at rush hours comes to ** %, what is much higher than the recommended level. Parking lots must observe the elasticity of parking workload to the parking price at the level of 0.4. It is necessary for parking lots to cope their basic functions, which are decreasing of traffic intensity and accelerating of speed on the road network.
The project target audience are car owners aged from ** to ** years, which make ** % of the total population of Moscow, considering also that every third inhabitant (33% of population) has a car. During the analyzing of opportunity of multi-level parking, the following data were identified: ** % of respondents use the services of such parking type constantly; ** % of them are going to buy a car place, **% – use them sometimes, ** % – do not use because of their high cost.
The promotion of services requires the obligatory taking into consideration such facts: **% of population prefer free of charge and unguarded parking, **% of them choose the parking of middle price segment. VIP and economy class parking lots are used by relatively small number of car owners – ** and ** % accordingly. It is expected to implement the marketing plan using the outer and contextual advertising, and also the advertising on radio and in Moscow printed matters. Project will be financed by both of private investment and bank loans in a ratio ** % to ** %. Construction objects will be rented since **th month of project implementation, when according the plan, all construction work will be finished.
Business Plan Description
Project idea: modern parking construction on the free areas over the central heating station (CHS).
Type of parking: above-ground multilevel.
Project location: Moscow, the Russian Federation.
Project audience: car owners aged from ** to ** years.
Equipment: automated system «PUZZLE»
Promotion and marketing: advertising posters placed on the building carcass; application of addresses on the Internet Moscow parking map; local media.
Project implementation period: * years, with the planning step in one month.
Excerpts from the Research
According to the statistics, cars are used directly only * hours a day. That’s why owners need the safe car keeping for the rest of the day.
The ratio of the car places number in Moscow parking and the number of city cars is approximately **. In the capital Central District, where the bulk of the workplaces is focused and accordingly the transport is congregated during the daytime, this indicator is decreased to 0.25. That’s why the building of new parking areas is particularly relevant for Russian capital.
Market volume of Moscow parking for mid-2014 is about *** car places and the average annual growth over the last 8 years is about *** car places.
In the structure of the Moscow parking types the above-ground single level parking lots (** %) are dominated, multilevel parking lots and garages are as follows (**% each). Underground parking lots occupy a relatively smaller share – * % of the total car places number.
In terms of parking areas deficit the car owners are forced to leave their vehicles far from the place of job frequently and get it from the parking by public transport. In the central city part the largest number of parking lots are situated near such metro station as «**», «**», «**», «**» and others.
The factors, which have a great influence on Moscow parking prices, are: location in the city (the prices in the center are higher than in suburbs) and type of parking, which directly depends on the cost of the car place constructing (** parking lots are more expensive than **). One more car place price factor is privacy. It means that only inhabitants or employees of a particular building could use the garage. The combination of these factors led to average rent car place price **-** RUB/month in the center of Moscow and **-** RUB/month in more suburbs.
The average peak parking workload is accounted for midweek – on Wednesdays (** %) and Tuesdays (** %). The peak parking workload lasts between ** h. and **h. The average parking workload on weekdays is about ** % and at rush hours comes to ** %, what is much higher than the recommended level. Parking lots must observe the elasticity of parking workload to the parking price at the level of 0.4. It is necessary for parking lots to cope their basic functions, which are decreasing of traffic intensity and accelerating of speed on the road network.
The project target audience are car owners aged from ** to ** years, which make ** % of the total population of Moscow, considering also that every third inhabitant (33% of population) has a car. During the analyzing of opportunity of multi-level parking, the following data were identified: ** % of respondents use the services of such parking type constantly; ** % of them are going to buy a car place, **% – use them sometimes, ** % – do not use because of their high cost.
The promotion of services requires the obligatory taking into consideration such facts: **% of population prefer free of charge and unguarded parking, **% of them choose the parking of middle price segment. VIP and economy class parking lots are used by relatively small number of car owners – ** and ** % accordingly. It is expected to implement the marketing plan using the outer and contextual advertising, and also the advertising on radio and in Moscow printed matters. Project will be financed by both of private investment and bank loans in a ratio ** % to ** %. Construction objects will be rented since **th month of project implementation, when according the plan, all construction work will be finished.
EXECUTIVE SUMMARY
1.0. PROJECT DESCRIPTION
2.0. MOSCOW PARKING MARKET ANALYSIS
2.1. Overview of Motorization Level in Moscow and Moscow Region
2.2. General Characteristic of Moscow Parking Market
2.3. Market Structure by Type of Parking
2.4. Market Structure by Prices
2.5. Problems Related to Parking Lack
2.6. Market Development Tendencies
2.7. Consumer Analysis
3.0. COMPETITOR ANALYSIS
3.1. The List of Competitors, Prices and Conditions
3.2. Competitors Concept and Services Assortment
4.0. MARKETING PLAN
5.0. ORGANIZATIONAL PLAN
5.1. Stages of Project Development
5.2. Wage Fund
6.0. INVESTMENT PLAN
6.1. Sources of Financing
6.2. Project Work Timetables
7.0. FINANCIAL PLAN
7.1. Project Assumption
7.2. Sales revenue
7.3. Project costs
7.4. Taxes
7.5. Depreciation
7.6. Profit and loss statement
7.7. Discount rate
7.8. Cash flow statement
7.9. Break-even point
7.10. Financial Analysis
7.11. Investment Analysis
7.12. Conclusion on the Project Investment Attractiveness
8.0. Sensitivity Analysis
8.1. Changing of services price level
8.2. Changing of equipment cost
8.3. Changing of general operating expenses level
8.4. Changing of discount rate
DIAGRAMS
Diagram1. Number of Passenger Cars per 1 000 Inhabitants of Moscow and Region
Diagram 2. Average Motor Transport Occupancy of Moscow Administrative Districts
Diagram 3. Ratio of Car Number in Moscow and Region by 2013
Diagram 4. Ratio of Increase in Car Number and Car Places for 2011-2012 in Moscow
Diagram 5. Provision of Car Places for Permanent Population of Moscow Districts,%
Diagram 6. Dynamics of Car Number in Moscow
Diagram 7. Types of Parking of Moscow
Diagram 8. Above-ground parking
Diagram 9. Structure of Multilevel Parking Garages Supply in the Central District by Metro Stations,%
Diagram 10. Average Peak Load of Week, %
Diagram 11. Statistics by Models of Stolen Cars in Moscow
Diagram 12. Stealing Statistics on Moscow Regions
Diagram 13. Changing the Car Market Productivity
Diagram 14. Population of Moscow administrative districts in 2012, thsd. pers.
Diagram 15. Distribution by Age Groups, thsd. pers.
Diagram 16. Car Owners Number in Districts of Moscow
Diagram 17. Cars Deficit by Districts, thsd. units
Diagram 18. The salary level for 2011-2012 in Moscow, RUB
Diagram 19. Increase in Vehicle Fleet of Moscow
Diagram 20. Time Proportion of Car Staying in Parking
Diagram 21. Account of Car Owners Preferences in Selection of Enterprise Strategy
Diagram 22. Structure of Labor Costs,%
Diagram 23. Ratio of External Investment and Credit,%
Diagram 24. Structure of investment directions, %
Diagram 25. Investment Dynamics, RUB
Diagram 26. Revenue Projections (for selected parameters), RUB
Diagram 27. Comparison of maximum revenue, minimum revenue and revenue on selected parameters for whole lasting of project implementation, RUB
Diagram 28. Costs Projections, RUB per month
Diagram 29. Tax Payments Structure, %
Diagram 30. Dynamics of taxes share in revenue, %
Diagram 31. Property Balance Value at the End of Month, RUB
Diagram 32. Project Break-even Point, % of Load
Diagram 33. Discounted Cash Flow Dynamics
1.0. PROJECT DESCRIPTION
2.0. MOSCOW PARKING MARKET ANALYSIS
2.1. Overview of Motorization Level in Moscow and Moscow Region
2.2. General Characteristic of Moscow Parking Market
2.3. Market Structure by Type of Parking
2.4. Market Structure by Prices
2.5. Problems Related to Parking Lack
2.6. Market Development Tendencies
2.7. Consumer Analysis
3.0. COMPETITOR ANALYSIS
3.1. The List of Competitors, Prices and Conditions
3.2. Competitors Concept and Services Assortment
4.0. MARKETING PLAN
5.0. ORGANIZATIONAL PLAN
5.1. Stages of Project Development
5.2. Wage Fund
6.0. INVESTMENT PLAN
6.1. Sources of Financing
6.2. Project Work Timetables
7.0. FINANCIAL PLAN
7.1. Project Assumption
7.2. Sales revenue
7.3. Project costs
7.4. Taxes
7.5. Depreciation
7.6. Profit and loss statement
7.7. Discount rate
7.8. Cash flow statement
7.9. Break-even point
7.10. Financial Analysis
7.11. Investment Analysis
7.12. Conclusion on the Project Investment Attractiveness
8.0. Sensitivity Analysis
8.1. Changing of services price level
8.2. Changing of equipment cost
8.3. Changing of general operating expenses level
8.4. Changing of discount rate
DIAGRAMS
Diagram1. Number of Passenger Cars per 1 000 Inhabitants of Moscow and Region
Diagram 2. Average Motor Transport Occupancy of Moscow Administrative Districts
Diagram 3. Ratio of Car Number in Moscow and Region by 2013
Diagram 4. Ratio of Increase in Car Number and Car Places for 2011-2012 in Moscow
Diagram 5. Provision of Car Places for Permanent Population of Moscow Districts,%
Diagram 6. Dynamics of Car Number in Moscow
Diagram 7. Types of Parking of Moscow
Diagram 8. Above-ground parking
Diagram 9. Structure of Multilevel Parking Garages Supply in the Central District by Metro Stations,%
Diagram 10. Average Peak Load of Week, %
Diagram 11. Statistics by Models of Stolen Cars in Moscow
Diagram 12. Stealing Statistics on Moscow Regions
Diagram 13. Changing the Car Market Productivity
Diagram 14. Population of Moscow administrative districts in 2012, thsd. pers.
Diagram 15. Distribution by Age Groups, thsd. pers.
Diagram 16. Car Owners Number in Districts of Moscow
Diagram 17. Cars Deficit by Districts, thsd. units
Diagram 18. The salary level for 2011-2012 in Moscow, RUB
Diagram 19. Increase in Vehicle Fleet of Moscow
Diagram 20. Time Proportion of Car Staying in Parking
Diagram 21. Account of Car Owners Preferences in Selection of Enterprise Strategy
Diagram 22. Structure of Labor Costs,%
Diagram 23. Ratio of External Investment and Credit,%
Diagram 24. Structure of investment directions, %
Diagram 25. Investment Dynamics, RUB
Diagram 26. Revenue Projections (for selected parameters), RUB
Diagram 27. Comparison of maximum revenue, minimum revenue and revenue on selected parameters for whole lasting of project implementation, RUB
Diagram 28. Costs Projections, RUB per month
Diagram 29. Tax Payments Structure, %
Diagram 30. Dynamics of taxes share in revenue, %
Diagram 31. Property Balance Value at the End of Month, RUB
Diagram 32. Project Break-even Point, % of Load
Diagram 33. Discounted Cash Flow Dynamics
TABLES
Table 1. Market Characteristic
Table 2. Distribution of objects number by type of parking in new garage complexes,%
Table 3. Distribution of objects number by type of parking in new buildings, %
Table 4. Distribution of objects number by type of parking in new and reconstructed business centers, %
Table 5. Rent per month
Table 6. Plan of Car Place Commissioning
Table 7. Project SWOT-analysis
Table 8. The Largest Parking of SBO «Gormost»
Table 9. Rent payment of CJSC «MUP»
Table 10. Central Parking Tariffs
Table 11. List of Moscow parking
Table 12. Main Stages of Project
Table 13. Time spent on construction of 1 unit
Table 14. Personnel Number and Labor Remuneration
Table 15. Investment Plan, RUB
Table 16. Cost of Preparatory Works
Table 17. Total Cost of Parking
Table 18. Stage of Works Cost
Table 19. Construction of objects by months
Table 20. Cost of Services
Table 21. Ratio of Services and Time Common Fund
Table 22. Cost of services per month
Table 23. General Operating Expenses
Table 24. Ratio of Parking
Table 25. Tax Rates
Table 26. Depreciation Rates
Table 27. Other Assumption
Table 28. Rent Revenue (for selected parameters), RUB
Table 29. Minimum and Maximum Car Place Rent Revenue
Table 30. Taxes
Table 31. VAT Calculation
Table 32. Balance Property at the Beginning of Month
Table 33. Depreciation Charges
Table 34. Balance Property at the End of Month
Table 35. Cost of Equipment and Preparatory Works for Period
Table 36. Profit and loss statement
Table 37. Calculation of long-term profits over CAPM for portfolios of decimal groups NYSE/AMEX/NASDAQ
Table 38. Algorithm for determining the risk of the company
Table 39. Algorithm for calculating the specific risk premium
Table 40. Calculation of discount rate by WACC-method
Table 41. Cash Flow from Operating Activities
Table 42. Cash Flow from Investing Activities
Table 43. Credit Terms
Table 44. Cash Flow from Financing Activities
Table 45. Total activity
Table 46. Break-Even Point
Table 47. Sales Indicators
Table 48. Profitability Indicators
Table 49. Operating Indicators
Table 50. Investor Cash Flow
Table 51. Discounted Indicators of Investor Cash Flow
Table 52. Indicators of Investment Attractiveness (excluding the discount rate)
Table 53. Discounted Indicators of Investment Attractiveness
Table 54. General Indicators of Investment Attractiveness
Table 55. Efficiency Criteria
Table 56. Sensitivity Analysis of Changes in Services Price Level
Table 57. Sensitivity Analysis of Changes in Equipment Cost
Table 58. Sensitivity Analysis of Changes in General Operating Expenses
Table 59. Sensitivity Analysis of Changes in Discount Rate
Table 1. Market Characteristic
Table 2. Distribution of objects number by type of parking in new garage complexes,%
Table 3. Distribution of objects number by type of parking in new buildings, %
Table 4. Distribution of objects number by type of parking in new and reconstructed business centers, %
Table 5. Rent per month
Table 6. Plan of Car Place Commissioning
Table 7. Project SWOT-analysis
Table 8. The Largest Parking of SBO «Gormost»
Table 9. Rent payment of CJSC «MUP»
Table 10. Central Parking Tariffs
Table 11. List of Moscow parking
Table 12. Main Stages of Project
Table 13. Time spent on construction of 1 unit
Table 14. Personnel Number and Labor Remuneration
Table 15. Investment Plan, RUB
Table 16. Cost of Preparatory Works
Table 17. Total Cost of Parking
Table 18. Stage of Works Cost
Table 19. Construction of objects by months
Table 20. Cost of Services
Table 21. Ratio of Services and Time Common Fund
Table 22. Cost of services per month
Table 23. General Operating Expenses
Table 24. Ratio of Parking
Table 25. Tax Rates
Table 26. Depreciation Rates
Table 27. Other Assumption
Table 28. Rent Revenue (for selected parameters), RUB
Table 29. Minimum and Maximum Car Place Rent Revenue
Table 30. Taxes
Table 31. VAT Calculation
Table 32. Balance Property at the Beginning of Month
Table 33. Depreciation Charges
Table 34. Balance Property at the End of Month
Table 35. Cost of Equipment and Preparatory Works for Period
Table 36. Profit and loss statement
Table 37. Calculation of long-term profits over CAPM for portfolios of decimal groups NYSE/AMEX/NASDAQ
Table 38. Algorithm for determining the risk of the company
Table 39. Algorithm for calculating the specific risk premium
Table 40. Calculation of discount rate by WACC-method
Table 41. Cash Flow from Operating Activities
Table 42. Cash Flow from Investing Activities
Table 43. Credit Terms
Table 44. Cash Flow from Financing Activities
Table 45. Total activity
Table 46. Break-Even Point
Table 47. Sales Indicators
Table 48. Profitability Indicators
Table 49. Operating Indicators
Table 50. Investor Cash Flow
Table 51. Discounted Indicators of Investor Cash Flow
Table 52. Indicators of Investment Attractiveness (excluding the discount rate)
Table 53. Discounted Indicators of Investment Attractiveness
Table 54. General Indicators of Investment Attractiveness
Table 55. Efficiency Criteria
Table 56. Sensitivity Analysis of Changes in Services Price Level
Table 57. Sensitivity Analysis of Changes in Equipment Cost
Table 58. Sensitivity Analysis of Changes in General Operating Expenses
Table 59. Sensitivity Analysis of Changes in Discount Rate
FIGURES
Figure 1. Parking of «PUZZLE» Type Scheme
Figure 2. Multilevel Parking
Figure 3. Parking of «Tower» and «Conveyor» Types
Figure 4. Parking of «PUZZLE» and «Rotary» Types
Figure 5. Parking Location in Central Part of Moscow
Figure 6. Consequences of Car Places Lack
Figure 7. Changing of Congestion in Different Zones of Moscow in 2014 Compared to 2013
Figure 8. SBO «Gormost» Parking Map
Figure 9. General Appearance of the "People's Garage"
Figure 10. CJSC «MUP» Parking Plan
Figure 11. CHS 903-4-119.87 Scheme
Figure 12. CHS 903-4-60.86 Scheme
Figure 13. CHS 903-4-172.9 Scheme
Figure 14. Platform Omer MONO 5-10-15
Figure 15. Company personnel
Figure 16. Administrative Districts of Moscow
CHARTS
Charts 1. Changing of Peak Occupancy Rate during Tariff Changing, %/RUB
Charts 2. Moscow Population Growth Dynamics
Charts 3. Depreciation Charges, RUB/month
Charts 4. Average Monthly Net Profit Dynamics during Price of Services Changing
Charts 5. Project NPV Dynamics during Price of Services Changing, RUB
Charts 6. Project Payback Period Dynamics (РР) during Price of Services Changing, months
Charts 7. Project Discounted Payback Period Dynamics (РР) during Price of Services Changing, months
Charts 8. Average Monthly Net Profit Dynamics during Cost of Equipment Changing, RUB
Charts 9. Project NPV Dynamics during Cost of Equipment Changing, RUB
Charts 10. Project IRR Dynamics during Cost of Equipment Changing, %
Charts 11. Average Monthly Net Profit Dynamics during General Operating Expenses Changing, RUB
Charts 12. Project NPV Dynamics during General Operating Expenses Changing, RUB
Charts 13. Project IRR Dynamics during General Operating Expenses Changing, %
Charts 14. Project Payback Period Dynamics (РР) during General Operating Expenses Changing, months
Charts 15. Project Discounted Payback Period Dynamics (DРР) during General Operating Expenses Changing, months
Charts 16. Project NPV Dynamics during Discount Rate Changing, RUB
Charts 17. Project Discounted Payback Period Dynamics (DРР) during General Operating Expenses Changing, months
Figure 1. Parking of «PUZZLE» Type Scheme
Figure 2. Multilevel Parking
Figure 3. Parking of «Tower» and «Conveyor» Types
Figure 4. Parking of «PUZZLE» and «Rotary» Types
Figure 5. Parking Location in Central Part of Moscow
Figure 6. Consequences of Car Places Lack
Figure 7. Changing of Congestion in Different Zones of Moscow in 2014 Compared to 2013
Figure 8. SBO «Gormost» Parking Map
Figure 9. General Appearance of the "People's Garage"
Figure 10. CJSC «MUP» Parking Plan
Figure 11. CHS 903-4-119.87 Scheme
Figure 12. CHS 903-4-60.86 Scheme
Figure 13. CHS 903-4-172.9 Scheme
Figure 14. Platform Omer MONO 5-10-15
Figure 15. Company personnel
Figure 16. Administrative Districts of Moscow
CHARTS
Charts 1. Changing of Peak Occupancy Rate during Tariff Changing, %/RUB
Charts 2. Moscow Population Growth Dynamics
Charts 3. Depreciation Charges, RUB/month
Charts 4. Average Monthly Net Profit Dynamics during Price of Services Changing
Charts 5. Project NPV Dynamics during Price of Services Changing, RUB
Charts 6. Project Payback Period Dynamics (РР) during Price of Services Changing, months
Charts 7. Project Discounted Payback Period Dynamics (РР) during Price of Services Changing, months
Charts 8. Average Monthly Net Profit Dynamics during Cost of Equipment Changing, RUB
Charts 9. Project NPV Dynamics during Cost of Equipment Changing, RUB
Charts 10. Project IRR Dynamics during Cost of Equipment Changing, %
Charts 11. Average Monthly Net Profit Dynamics during General Operating Expenses Changing, RUB
Charts 12. Project NPV Dynamics during General Operating Expenses Changing, RUB
Charts 13. Project IRR Dynamics during General Operating Expenses Changing, %
Charts 14. Project Payback Period Dynamics (РР) during General Operating Expenses Changing, months
Charts 15. Project Discounted Payback Period Dynamics (DРР) during General Operating Expenses Changing, months
Charts 16. Project NPV Dynamics during Discount Rate Changing, RUB
Charts 17. Project Discounted Payback Period Dynamics (DРР) during General Operating Expenses Changing, months
