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UAE University
College of Engineering
Engineering Requirements Unit
Engineering Economics course (GENG 315)
Project Title
Scrub Art Shop
Submit to:
Dr. Essam Zaneldin
Section Number: 01
Prepared by
Student Name
ID
Meera Saeed Mohammed Alrashdi
201901639
Summer 2022
GENG 315 – Summer 2022
Table of Contents
Contents
Table of Contents …………………………………………………………………………………………………. 2
1.1 General Company Description …………………………………………………………………….. 3
1.1.1 Objectives and Goals ………………………………………………………………………………… 4
1.2Products and Services……………………………………………………………………………………. 5
1.3 Marketing Plan …………………………………………………………………………………………….. 5
1.4 Financial Plan ………………………………………………………………………………………………. 6
1.5 Startup Capital Investment …………………………………………………………………………… 7
1.5.1 Cost Division …………………………………………………………………………………………… 8
1.5.2 Evaluation Calculation ………………………………………………………………………………. 8
1.5.3 Excel Data Sheet ………………………………………………………………………………………. 8
1.6 Conclusion …………………………………………………………………………………………………… 8
GENG 315 – Summer 2022
1.1 General Company Description
We all want to have beautiful, bright, and healthy skin, but some of us are too lazy to take
care of it, especially for an extended period, and we lose passion because we are bored.
Our shop’s name is “Scrub Art”. Scrub Art creates seasonal scrubs that are perfectly
natural with amazing shapes that indicate their scents and flavors. It can also be tasted
because it is made entirely of natural ingredients. It is located in Alain, Abu Dhabi, UAE.
At the start of the business, the shop aims to supply three different scrubs: ice cream
scrub, lemon cake scrub, and hot chocolate scrub. This project was created to encourage
individuals to take care of their skin by using our unique and delicious scrub shapes. Our
overall goal is to continue to provide excellent quality, service, and value to our
customers.
In the United Arab Emirates, the skin care industry is consistently growing. Due to
customers’ increasing preference for natural and organic skincare products, the market is
estimated to continue growing over the projected horizon. In a short time, people’s desires
and tastes vary frequently, which might have an impact on the shop. Because at the
present time, our shop is only producing ice cream, lemon cake, and hot chocolate scrub
flavors. For a long time, as the number of demands will increase, development and
expansion of machines and tools will be required. In addition, due to the high demand,
more employees will most probably be necessary.
Our business’s short-term mission is to attract as many customers as possible and provide
them with the opportunity to try our full moisturizing scrubs, which will result in
beautiful skin after a period of time. Also, to have a taste of them. The business’s longterm mission, on the other hand, is to grow its worldwide recognition for organic scrubs
in order to help minimize the number of products that include chemicals that hurt
people’s health and end up in toxic landfills and watersheds. To help enhance our skin
organically, we prefer to make the scrubs with organic ingredients rather than chemicals
that may have long-term side effects. We’re also planning on having the option of
delivering our products all around the UAE at the time being, for people who can’t make
it to our place but still want to experience our delicious scrubs. Moreover, we will
provide a global shipping option in the future.
GENG 315 – Summer 2022
The main strength that sets our business apart from competitors in the market is that all of
the products we produce are high-quality, all-natural, organic, and reasonably priced.
However, what really stands out about our products is that their shapes attract people in
and lead them to believe that they are real food. As a result, we made our products edible
so that customers could enjoy the flavor of their favorite scrubs while still getting the best
results.
Scrub Art shop administrative structure (employees’ chart):
1.1.1 Objectives and Goals
Objectives:

To find an affordable rental in a desirable location.
To attract as many clients as possible.
To create products of excellent quality.
To go above and beyond the customer’s expectations.
To offer several scrubs and maintain them updated in terms of flavor and shape.
To generate the most revenue possible.
Goals:

To widen the market internationally.
To make a larger profit than predicted.
To compete with similarly huge companies.
To increase the number of foreign customers.
GENG 315 – Summer 2022
1.2 Products and Services
Describe in depth your products or services (technical specifications, drawings, photos,
sales brochures, and other bulky items belong in Appendices).
What factors will give you competitive advantages or disadvantages? Examples include
level of quality or unique or proprietary features.
What are the pricing, fee, or leasing structures of your products or services?
List all of your major products or services.
For each product or service:
• Describe the most important features. What is special about it?
•
Describe the benefits. That is, what will the product do for the customer?
Describe Also:
1- Size of firm
2- Quality, technology, and price preferences
3- Other (specific to your industry)
GENG 315 – Summer 2022
1.3 Marketing Plan
4- Mention why you need to make a market research. (Important of your industry
and its growth)
5- How did you make this market research? How did you do your primary search
and what about detailed search?
a.
b.
c.
d.
Internet search
Site visiting
Personal Communications
So on………
6- Mention your market size in UAE or any other country (Market size means value
or size of your industry that effect country economy for example market size for
oil production in UAE is $40 billion. How your company will share from this
market like 1% (1-2% is considerable high market share)
7- Mention barriers of your company like(High capital cost, High production cost,
Competitive, High marketing cost, so on..) and how you can overcomes these
barriers
8- How is the following will affect your market ( change in technology, change in
government regulations, change in the economy, change in your industry)
9- Identify your targeted customers, their characteristics, and their geographic
locations, otherwise known as their demographics. Like (Age, Gender, Income
Level, Education, others….)
10- Mention most of competition companies in the same area your work
11- Mention your distribution channel and you can sell your product only by your
office or do you have any distribution channel helps in selling your product.
GENG 315 – Summer 2022
1.4 Financial Plan
The financial plan consists of a 12-month profit and loss projection, a five-year profit and
loss projection (optional), a cash-flow projection, a projected balance sheet, and a breakeven calculation. Together they constitute a reasonable estimate of your company’s
financial future. More important, the process of thinking through the financial plan will
improve your insight into the inner financial workings of your company.
Profit and Loss Projection
Many business owners think of the profit and loss projection as the centerpiece of their
plan. This is where you put it all together in numbers and get an idea of what it will take
to make a profit and be successful.
Your sales projections will come from a sales forecast in which you forecast sales, cost of
goods sold, expenses, and profit month-by-month for one year.
Profit projections should be accompanied by a narrative explaining the major
assumptions used to estimate company income and expenses.
Of course, keep notes of your key assumptions, especially about things that you expect
will change dramatically after the first year.
Projected Cash Flow
If the profit projection is the heart of your business plan, cash flow is the blood.
Businesses fail because they cannot pay their bills. Every part of your business plan is
important, but none of it means a thing if you run out of cash.
The point of this worksheet is to plan how much you need before startup, for preliminary
expenses, operating expenses, and reserves. You should keep updating it and using it
afterward. It will enable you to foresee shortages in time to do something about them—
perhaps cut expenses, or perhaps negotiate a loan. But foremost, you shouldn’t be taken
by surprise.
There is no great trick to preparing it: The cash-flow projection is just a forward look at
your checking account.
For each item, determine when you actually expect to receive cash (for sales) or when
you will actually have to write a check (for expense items).
You should track essential operating data, which is not necessarily part of cash flow but
allows you to track items that have a heavy impact on cash flow, such as sales and
inventory purchases.
You should also track cash outlays prior to opening in a pre-startup column. You should
have already researched those for your startup expenses plan.
Your cash flow will show you whether your working capital is adequate. Clearly, if your
projected cash balance ever goes negative, you will need more start-up capital. This plan
will also predict just when and how much you will need to borrow.
Explain your major assumptions, especially those that make the cash flow differ from the
Profit and Loss Projection. For example, if you make a sale in month one, when do you
actually collect the cash? When you buy inventory or materials, do you pay in advance,
upon delivery, or much later? How will this affect cash flow?
Are some expenses payable in advance? When?
GENG 315 – Summer 2022
1.6 Startup Capital Investment
Detailed your capital investment of your project you can use table to show your
calculation (All required physical resources such as land, construction building, and
machine and equipment)
1.6.1Cost Division
Mention all cost needs in your project (Fixed cost annual operating expenses) and fund
you can get from bank or any other supporter you can use table to show number.
Example calculation for employee salaries
1.6.2 Evaluation Calculation
Do your calculation according to your excel result finding the following:
1- payback period
2- IRR of your project
3- PW or FW or AW of your project
4- Draw cash flow for your project
5- Draw relation between total revenue and total cost and demand
6- What is the value of your demand to cause breakeven point and at after how many
years it will take place
1.6.3 Excel Data Sheet
Put your excel result in this section focusing on (Project and loss sheet, balance
sheet, and cash flow sheet)
GENG 315 – Summer 2022
1.7 Conclusion
Summarized you project and do you think its good business to start with
GENG 315 – Summer 2022

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