United Textiles Pte Ltd

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2009 had been a very difficult year where the economic crisis engulfed the world at an unprecedented pace and left many companies struggling to cope with the challenges brought upon by the financial crises. The aftermath problems saw many companies facing uncertainties and in some severe cases, some companies faces bankruptcy. Domestically speaking, sales to our local major customers are slow. These are not unexpected and have arisen mainly due to cautious spending attitudes among our customers. Notwithstanding, we believe that they have further potential for growth and will strive to increase our presence in these markets.

United Textiles felt the repercussions too where sales orders decreased and profit margins dipped too. However, we believe strongly that sales will pick up during the 1st half of 2010. Currently, we have plans to penetrate sales into Australia, Indonesia, Malaysia, South Africa, South Korea and Thailand. We hope to have a dominant market position in Singapore with over 50 distributor and dealers located around the world in 2015.

We expect the tough economic conditions to persist for some time. However, we will strive to overcome these challenges and maintain our competitiveness during this difficult period. While cost containment ranks high among our list of priority, we believe that cost savings should not be achieved at the expense of product quality. In this regard, we will continue to innovate and refine our products to meet the current trends, technology and needs of our customers while bearing in mind the importance of reining in costs. At the same time, we will further cultivate those markets where growth opportunities exist while reinforcing our presence in the existing markets. Recently, the company has just signed a contract totaling to about $250,000 to supply textiles. This is one of the biggest orders ever since the incorporation of the company. Last year, we did consolidated sales of about $200,000 dollars. Our financial projection for Year 1 is a net loss after taxes of $174,000. Year 2 is projected at a net profit after taxes of $1,019,031. Year 3 is projected at a net profit after taxes of $1,165,987.The $1.19 million dollars we are seeking will be used to begin production, packaging, and marketing as well as for short term capital and overhead needs.


1.1 - Introduction

United Textiles Pte Ltd is a locally incorporated company in 2009 and it was founded by Spencer Ng, Glenn Chai and Ngiap Sheng on 1st January 2009. Spencer Ng being the largest shareholder of all has 40% ownership of the company while Glenn and Ngiap Sheng each own 30%. United Textiles Pte Ltd manufactures smart textiles and is responsible for sale, distribution and management of textiles in Singapore retail and merchant sector. The Management Team members have got strong backgrounds in both business and engineering studies. The potential market for the smart textiles is very promising. It is estimated at $50 million dollars alone in Singapore. While the market includes some large competitors, the Company strongly believes that it can compete effectively because of its high quality development team, extensive contacts with distribution partners and innovative product ideas.

Spencer Ng, Glenn Chai and Lim Ngiap Sheng are the founders of the company and are formerly from Unisim, They are ex-classmates and graduated with a First class Bachelor's Degree in Business studies. Ngiap Sheng has an additional MBA in biomedical engineering in National Technological University of Singapore. They are great pals during the university days and have great passion in becoming entrepreneur. They always believe that the sky is the limit and failure is part of success. They believe in working for oneself and not for others.

Since graduating, the three guys work for local SMEs, MNCs as well as pubic listed companies in Singapore. However in 2009, taking the opportunities arising from the new enabling technologies and applications of smart textiles, they decided to become entrepreneurs and started United Textiles Pte Ltd. They viewed it as a golden opportunity to penetrate into the market. In United Textiles, we have selected the finest material for manufacturing/production and some of the benefits of our products are: it protect against any illness, act as communication devices between people and as well as environmental friendly. In additional, it also serves usefulness across to many industries such as in biomedical sectors.

The textile industry is obviously a significant contributor to many national economics which encompassing of both small and large-scale operations worldwide. United Textiles Private Limited is principally engaged in the design, production and sale of textiles. Our corporate office and production is in the Republic of Singapore. We have annual production capacity of approximately 1 million yards per year.

1.2 - Vision Statement

Our vision is to develop into a globally respected textiles company through quality, innovation, speed, flexibility, reliability and competitive prices. We want to benchmark our production quality to comply with international standards such as ISO 9001:2000 certifications.

1.3 - Management Values and Ethics

Our commitment is Customer satisfaction; we want to maintain the best quality from the raw material to the finished product and compliance to Laws & Regulations through improvement of systems and processes through continuous process of performance reviews and audits, fully motivated and trained team of workers and staff and monitoring of Targets & Objectives.

Core Values

1. Excellence

we strive for excellence in serving our customers. We challenge industry norms with our performance.

2. Innovation

we relentlessly search for and create new ways to improve our products and services to delight our customers.

3. Integrity

we are fair and honest in our dealings with colleagues, business partners and customers.

4. Our Team

our different perspectives energise our team. We achieve better results as a team than we can individually.

5. Developing Our People

we create an environment that attracts and nurtures talent. Our jobs are more than just work, they are avenues for our growth.

1.4 - Business Description

Unlike other textiles manufacturers, United Textiles select and uses a variety of natural materials such as cotton and wool or other synthetic fibres for our manufacturing materials. To allow our customers to concentrate on managing their core business, we offer document outsourcing services, advanced, digital and network-based solutions, as well as strategic consulting services. We provide total support for a business's entire document management needs, ranging from print, to document capture and conversion from paper to digital as well as document archival, retrieval and more.

Our business proposition includes a comprehensive range of supplies, from specialty papers to toner cartridges, many of which are recyclable.At United Textiles, we believe documents are the indispensable building blocks for capturing and sharing knowledge. The key to effective use of this intellectual property, which in essence is the lifeblood of an organisation, lies in combining document management and information technologies. Knowledge workers must be able to use networks and the Internet easily to store, manage, share and print documents whenever and wherever required.


2.1 - Relevant Market Trends

2.1.1 Climatic Change

One of the relevant market trends is coping with climate change (extreme weather conditions). Climatic change refers to more frequent heart waves, cold, storms, floods and droughts. This climatic change also creates an impending need to cope with extreme weather conditions and quickly adapt to changing climate conditions, primarily through temperature control.

An example would be in the case of PCM, phase change materials which are already being used in the Beijing Olympics Nike pre-cool vest. Some advanced products has also indulged in using adiabatic expansion of compressed air to keep people cool in extremely hot conditions and combine neoprene with frozen gels to create cold compression therapy to reduce core temperature rapidly.

2.1.2 Energy Scarcity & Recycling and Conversation.

Manufacturers whom uses vast amount of energy such as oil across globally are seeking for alternative energy and conversation of fossil fuels. This is due to global energy consumption has increased by 10% annually and is expected to continue to increase. Also, the need for recycling products are becoming a trend now because global garbage collection had cause significant strains on national dumping grounds and landfills. There is a need for garbage reduction, alternatives to landfills as well as mitigate pollution and related diseases

2.1.3 Ageing Population

Due to the global ageing population (60 years and above) expected to increase from 10% to 22% by the year 2050, there are many distinct requirements. There is a need for healthier elderly population, increased work productivity and better health social care services.

2.1.3 Knowledge Based Economy

The current knowledge based economies has result in substantial growth in communication, data storage and information technologies hence more knowledge is generated and decision making processes are accelerated, societies, economies and business operations become increasingly complex. In this instance, there is a need to filter information and reduce the transaction costs.

2.1.4 Individualization

Individualization refers to the state of a society in which people decide independently. The society is moving towards the direction. With the need for expressing own opinions during decision making processes, self awareness increase gradually. Hence, in this regard, people aim for social distinction as well as expansion of experience and entertainment.

2.1.5 Artificial Intelligence

There is a trend for extension of product life cycle. Some existing products are now re-engineered to become lighter, stronger, smarter as well as cleaner. Consumer are now more demanding, they want new technologies to improve their product's lives.

2.2 - Market Segmentation

2.3 - Assessment of Market Opportunities

There are estimated 500 companies in Singapore's textile industry which represents 3% of the total companies in Singapore. Most of the textile manufacturers in Singapore use out-dated and inefficient technology for their production. These companies are either slow in production or their product quality not up to quality. United Textiles believes that this is a good opportunity to penetrate into the market.

2.4 Target Market and Customer Segment

Sports Textiles

Due to the increase of interest in sports and outdoor activities and the influence of major sports events such as World Cup and Olympic games, this sector is expected to show a high growth rate. Today's sports and outdoor activities demand high performance equipment and apparel. The light weight and safety features of textile products have become important in their substitution for other materials.

Home textiles

One of the largest technical textile markets, this sector comprises household textiles and furnishings used in contract applications and by the upholstered furniture industry. The latter include fiberfill and wadding applications in bedding, cushions, sleeping bags and furniture backings. The output of this sector shows slightly-below average unit values for the industry. Market growth has been reasonably strong.

Transportation textiles

This sector comprises all textiles used in cars, trucks, trains and aircraft. It is the second largest market sector in North America. Products range from carpeting, trunk-liners and upholstery through beltings, tire cords and composites for aircraft bodies. The market is mature and consequently shows only low growth. Unit values, however, are above average for the industry.

Military textiles

This is a large end-use market comprising a mixture of low value/ low tech and high value/hi-tech products. It includes uniforms, medical products, composites used in military equipment, temporary buildings, camouflage fabric, netting and FIBCs. This is also an area of considerable technical development and potential growth.

Clothing components

This sector comprises sewing threads, interlinings, waddings and insulation materials used in clothing and footwear. Given the contraction of the US apparel industry the market has declined. However, the expansion of apparel manufacturing in the Caribbean basin still offers growth prospects for US companies and products have high unit values, suggesting a specialized industry.


This market comprises diverse packaging uses, including traditional bags and sacks made from jute, cotton and flax but increasingly from woven polypropylene. An important segment is so-called flexible intermediate bulk containers (FIBCs) for powdered and granular materials. Another non-traditional product application is the use of lightweight nonwovens and knitted structures for the food industry. These include knitted netting for fruit, absorbent mats for fresh produce, and nonwovens for tea and coffee bags. Another segment is textile reinforcement for tapes and envelopes. The packaging market represents a moderate growth area, though there is a growing (environmental) need for re-usable packages and containers and it is believed there will be new opportunities for textile products in this market.

Industrial textiles

This segment includes textiles used directly in industrial applications or incorporated into other industrial products, such as filters, conveyor belts and abrasive belts, as well as reinforcements for printed circuit boards and seals, gaskets and others industrial equipment. This is one of the largest market sectors and a moderately strong growth area.

2.5 - Identification and description of innovative product

United Textile has two significant strengths.

1. The Smart textile interface. No other product offers this kind of nanotechnology for textile. As sporting and adventurer seeker wears, needs more strength and lightweight, using carbon nanotubes which are already in place baseball bats and tennis rackets. Nanotech-based fabrics will be incorporated to a growing extent in our sports apparel for added strength, stain resistance, moisture wicking and other benefits

2. Using natural materials such as cotton and wool or other synthetic fibres for our manufacturing materials.


A potential weakness for the United textile product is the higher pricing, however, each united Textile product will come with specification of material it's made of, it's benefit and in good quality. We believe that our consumers will accept our products with grace.

2.6 - Marketing Strategy

The company's marketing plan will be a five step process.

1. Consider durability, product design, reliability, resources and production capacities during research and development phase.

2. Develop short and intermediate sales goals within our company's capabilities, it will be realistic, these goals should involve only practical efforts and affordable expenditures within budget.

3. Product strategy according to product range for sports, durable quality products, consumers using for extreme condition, high value-high price range and for fashion. Pricing plan will be matching the needs

4. Develop marketing strategies, there is no “one size fit all” marketing plan, strategies are to be cater to different groups of consumers taking into consideration of geographic market shifts. However, the common marketing strategies like direct mail, telemarketing, internet marking, trade shows, sales promotion campaigns will be used. The differences will be in the content as time varies.

5. Pricing strategies will dictates which customers it will be attracted to. The high price structure pricing strategies will deliver messages to consumers that the products pricing are appropriate. The company's product pricing are targeted at the mid-level income and above.

The psychological nature of pricing strategy will be based on the worth of the product in some cases; it is interpret by consumers according to the level of the item's price. All products price are to be shown. All specification of products from its made, origin, materials, uses and product care will be shown on each piece of product as survey shown consumers have fewer resistances to products with more meaningful consumer's benefits.

2.7 - Sales Strategy

To keep customer continuous with us, we will need to develop customer loyalty and satisfaction by customers' rewards and a database. Each customer would shop with us will have their own preferences and highlighted products display after their first log on to our E-commerce platform. It will come with news and updates of related product and events which might interest them. An online personal survey will be done every 6 months for each customer to grade and comment. Not only customers will be view important, we could also upgrade our service to even more customers based on feedback.

3. Development of Products & Services

3.1 - Design - Development - Lunch Plan (Milestones)

2010 - 2011


March Putting up business proposal, and sourcing for investors. Look at banks for loans/sponsors and government aids for company start-ups. Conduct market research, mails-5000 person, phone interviews-500 person and visits-50 person.

June Establish theoretical information of company. Begin R&D (research and development) plans. Initialize E-commerce platform. Look for suppliers for new improved material on products. Establish costs and determine potential market.

September Review E-commerce platform results and market research, business plan to blend into data. Confirm costs and develop final copy of plan. Incorporation of venture, find location for office. Start sourcing for man power, planning for trade shows, road shows and events for 2011.

December Ordering of products, materials and hiring the needed right person. Obtain financing. Training for the staff in preparation for events. Signing up distributers and dealers.


March Going for trade shows 2011, organising road shows/events. Review of past one year progress and make adjustments. First sales and first delivery.

June Plan for visiting overseas tradeshows and events for business

September Plan for hosting television marketing events, organising year-end outfit show. Plan for local boutique/shop, location, sales and hiring of local sales staff.

Future Develop community for our products, form a club and online forum. Organize factory visits on our process, overseas tour trip for members. Hold fundraising events for local charities. Invite celebrities and endorse our products. Continuous improvement review plan.

3.2 - Purchasing & Outsourcing

All directors agree upon to never depend only on source, to prevent any mishaps from happening. United Textile will have at least two major suppliers for our production; contract will be signed and enforced to ensure on time delivery and quality of materials.

United Textile also has two major freight forwarding companies to support on our deliveries. Continuous effort will be made to source for suppliers and freight forwarding in line with company policy and reduce any unnecessary cost.

The logistics department will coordinate with each suppliers and freight forwarding companies. Logistics department will also be in charge of handling local deliveries.

United textile will outsource accounts to external accounting firm for the beginning 18 months till our accounting department is able to function on its own.

3.3 Protection of Intellectual Property

United Textile's success is highly dependent on its R&D (research and development) for smart textile. High importance will be placed to protect United Textile's intellectual property rights. Direct profiting from selling intellectual property is secondary to United Textile.

United Textile will not issue licensing rights to other partners to manufacture our products, selected overseas partners will have rights to sell, distribute and organise their local trade shows.

Enquire trademarks licensing for United Textile and its product. Our Nanotechnoloy for smart textile will be patent. The patent process will take 2 years to complete at a cost of less than $2400. Below is the breakdown for patent timeline:

-Pre-examination process, 3 months at $740 basic filing fee.

-Examination process, 19.4 months at $1580 allowances fee.

-Post-examination process, 2 months.

Total: 24.4 months taken at cost $2,320.

Specification will be needed for the product, the introduction, description, summary, examples of its application and some flexibility in the claims.

4. Operations

Operations include and describe the physical necessities of the business's operation and the production of products and services for clients. It presents the action plan for executing the company vision.

4.1 - Supply Chain

Suppliers which manufactures or supplies “Smart Textiles” provides the necessary goods that will be sold to the market. It is important that the company do not only rely on a single supplier for the goods but to have at least an alternate regular supplier. This will help prevent any unforeseen problems should the first supplier failed to deliver or should there be any problems with the goods.

As there are few suppliers of the “Smart Textiles” in the industry, the suppliers will have a high bargaining power for their goods. Being on the top of the value chain, the suppliers will prefer to deal directly with other business entities rather than the end-user. Thus, strategic partnerships are vital for the benefits of the company.

The average time for the goods to arrive via ocean-freight from the two suppliers located in Europe is 2-3 weeks. In the event of any urgent requirement for supplies, the contingency plan is to have a bale of fabric flown in via express courier services which will takes about 3 days.

As warehousing space is expensive in Singapore, proper planning have to be done to ensure that no warehouse space is left empty and that all scheduled incoming shipments have a storage space allocated. The warehouse is located in the MacPherson industrial area, as it is centrally located with easy access to major roads and expressways.

4.2 - Scope & Scale of Operations

All outgoing goods from the warehouse will be subjected to a compulsory quality control visual inspection before they are dispatch out to customers. It is the responsibilities of the operation team to ensure that all outgoing goods are quality checked and matches the customers' orders.

4.3 - Short-term Goals

The company has set 4 short-term goals for the first year of operation. Achieving these goals will be the top-most priority of the management team.

1. Complete renovating, stocking, hiring and initial marketing.

As this is a new business set-up, it is paramount that the infrastructure of the entire company is up and running. Ample stocks have to be in the warehouse in preparation of any huge orders. In addition, key personnel vital to the smooth operation of the company needs to be source and hire. An initial marketing campaign will be soft-launch to a limited audience before making it generally available so as to gather data on the product's acceptance.

2. Penetrate and raise awareness in 60 percent of targeted consumer market.

Following the soft-launch of the product, another marketing campaign will be hard-launch where the product will be made available to the general public. Marketing tools such as mailers and emails will be send out to potential consumers found in business directories and publications to inform them about the company. A company and product website will be set up so that a wider consumer base can be reach with the minimum effect.

3. Build a solid customer base and mailing list.

From the enquiries received after the two marketing campaign, an initial customer base can be established. These interested consumers will be send regular updates of the company new products or promotions via e-newsletter. Good after-sales service will need to be provided so that feedbacks can be gathered, and problems areas needing improvement can be acted up without delay.

4. Generate repeat and referral sales.

Consumers who purchased regularly will be given 30 days credit payment terms as a way of thanking them and to encourage them for further purchases. They will have copies of our product samples so that they are able to pass them on to their business counterparts. In addition, whenever new products are launches, the regular customers will be given the privilege to try them out before the rest.

4.4 - Long-term Goals

Following the goals set for the first year of operations, long-term goals from the first year till the third year of operation are derived as follows.

1. Revenue milestones will be attained

It is critical that any business will achieve break-even by the third year of operating. If the company had yet to achieve break-even, a thorough analysis of the company's operation and financial health need to be conducted to find out the problem areas which are to be dealt with immediately.

2. New products and services will be introduced to the marketplace

As a company grows, it has to constantly innovate and come up with new products. As per Ansoff's matrix, there are four possible product/ market combinations for the company to grow; market penetration, product development, market development and diversification.

3. Key customer contracts will be secured

While the customer base could already be of a substantial size by t he third year, it is also important that key customers who have a big and steady flow of orders regularly are secured and properly ‘serviced'.

4. Key employees will be hired

As the company grows and expand, new positions are created and need to be staffed. Personnel with vast experiences need to be recruited to helm the new position to generate new ideas in order for the company to reach greater heights.

5. Management

5.1 - Organizational Structure

The business (Limited Liability Partnership) will be headed by 3 managing partners, who each hold the position of Director and are each in charge of specific department/s in the firm that they have experience in. Others positions in the organistation will be hired.

5.2 - Board of Directors and Management Team

1. Managers of the Business

The managers of the business (Limited Liability Partnership) comprises
of the following members:
Director of Marketing/ Sales and Operations/ Logistics departments
Mr. NG C.K.
Director of Human Resource/ Administration and
Accounts/ Finance departments
Mr. LIM N.S.
Director of Research and Development department

2. Management Team

The management team of the business are the managing partners of the company. They are highly-driven individuals working together for the success of the company.

Mr. CHAI Y.Z., Director of Marketing/ Sales and Operations/ Logistics departments is the overall in-charge of the Marketing and Sales department which comes up with the marketing strategy and sales campaign for the company and the Operations and Logistics department which monitors the quality control and warehousing for the entire company. There is a manager in each department whom reports directly to him. His responsibility is to provide leadership and coordination of company sales and marketing while at the same time, monitoring and analyzing sales and marketing activities against the company goals. In addition, he is also responsible for the establishing and maintenance of necessary operational systems and procedures to ensure the most effective utilization of facilities, equipments and manpower under his control, while maintaining a quality product.

Mr. NG C.K., Director of Human Resource/ Administration and Accounts/ Finance departments heads both the Human Resource and Administration department, and the Accounts and Finance department. The external auditor of the company and the two managers of each department reports directly to him. As the head of the Human Resource and Administration department, his responsibility is to develop and implement corporate human resource strategy and programs. At the same time, he also needs to ensure the presence of an effective and efficient administrative service to the company.
Similarly, Mr. NG will oversee all accounting functions, accounting policies and practices, manage the company's treasury functions, direct budgeting, audit, tax, and contribute to the company's strategic plan.

Mr. LIM N.S., Director of Research and Development department leads the Research and Development department of the company. He will participate in the company's strategic planning and in setting the company's technological direction. In addition, he will analyses technology trends, human resource needs and market demands to plan projects.

5.3 - Remuneration of Management & Employees

To successfully build a core competent pool of employee, the company's remuneration packages are pegged to the market standard as much as possible. Claims and allowances are allowed where necessary as long as they are justifiable.

The 3 managing partners of the company will be each paid a monthly salary of $4,000, while the department managers are paid $2,500 monthly and the rest of the company staff, a combined sum of $20,000. The total remuneration paid to all employees of the company including directors and managers is $504,000 per annum.


6.1 - Cash Flow Statement



31 DECEMBER 2009






Source of Funds:

Beginning cash





Sales/Svcs Income





Sale of Assets





Customer deposits










Contributed Capital





Available Cash





Use of funds:

Use of Funds






Other operating expenses





Loan payments





Asset / Equip Purchases





Rent Payments





Total Cash Out





Net Cash Flow






6.1 - Income Statement



31 DECEMBER 2009


FY 2009


Product/service sales




Consulting Services








Total revenue



Cost of Goods Sold:



Production Expense




Gross margin




Operating Expense


Bad debt






Loan Interest




Total Operation Expenses


Pre-Tax Income


Tax Provision


Net Profit


6.3 - Balance Sheet Statement



31 DECEMBER 2009


FY 2009

Current Assets:



Accounts Receivable




Total Current Assets


Fixed Assets:

Buildings & Equipment


Less Accum Deprec.


Total Fixed Assets


Total Assets


Current Liabilites

Current Liabilities:

Accounts Payable


Short Term Loans


Other short term liabilities


Total Current Liabilities


Long-term Liabilities


Total Liabilities


Stockholder's Equity:

Stockholder's Equity:

Contributed Capital


Retained Earnings


Total Stockholder's Equity


Liabilities + Equity


6.3 - Break-even Analysis

The variable unit cost for producing one metre of Smart Textiles is $1.00.

We are projecting at 24 months to break even and the cost is

Your MBA partner has forecast expected unit sales of 150,000 burgers in 18 months.

The unit price you are projecting for the burger is: $1.99.This is your best estimate of what the average consumer will pay for your soy-burger.

If you charge $1.99 for your burger, how many burgers will you have to sell before you make back your total cost: $140,000 + (150,000 burgers x 97 cents)?

Enter the variables into the Break Even Calculator. Then click Calculate.


Financial Risks

1. Interest rate risk.

2. Currency fluctuations

Business Risks

1. Economy Downturn/Crises

2. War, strikes and disasters


8.1 - Motivation of Investors

Despite the global economic crises, the impact on Singapore markets is at minimal. Optimistically speaking, Singapore economic is growing but at slow pace. Majority of the industries are growing and one of them is the textile industries.

United Textile's directors are thoroughly familiar with the market, research and development are our strong point and able to invent trend changes before the consumers. All three directors have strong leadership qualities prior to United Textile. Director Ng was a European MNC finance manager. Director Lim is one of the few Asian researchers whom won an award; it was the innovative scientist award for technology at the young age of 19 awarded by a Singapore government body, governing on trade, productive and technology growth. Director Chai, has previously started up an E-commerce company with only US$22,000 dealing with online retailing, he has recently sold off the company at US$1.6 million dollars. The E-commerce company was 3 years old when it was sold off, making almost 800% of its start up cost.

Notwithstanding, we are expected to incur losses for the first one or two years in the business so as to build our foundations and our customer bases. However, 3 years onwards, we are projecting getting net project of over one million dollars. We will be also penetrating into the Asia countries for sales expansion.

8.2 - Estimated Capital Requirements and Purpose.

In line with our strategic planning requirements and for sales to increase, our working capital needs to be increased and adjusted. United Textiles require an estimation of approximately $1.154,000 dollars on top of their starting off capital to finance on their future working capital.

8.3 Sources of Capital

Machineries $400,000, Equipments $30,000, Renovation-work $100,000, R&D $200,000, Sales and marketing $ 100,000, Electrical $20,000, Rents $ 144,000, Advertising budget $ 50,000, Additional funds of working capital $ 100,000, Insurance $10,000. Total = $1,154,000 dollars

8.3 Proposed Debt to Equity Structure.

The debt ratio compares total liabilities to total assets. Obviously, more of the former means less equity and, therefore, indicates a more leveraged position The proposed debt to equity structure will be 1.25 for United Textiles in the third onwards


General Reference

1. Kuratko Hodgetts., ENTERPRENEURSHIP Theory, Process, Practice Seven Edition, Thomson South Western 2007.

2. Dickerson, K.G., Textiles and apparel in the global economy, Upper Saddle River, N.J. : Merrill, 1999.

3. U.S. Industry & Trade Outlook, New York : DRI/McGraw-Hill : Standard & Poor's ; Washington, D.C. : U.S. Dept. of Commerce/International Trade Administration, 2000, ch.9.


1. http://entrepreneurs.about.com/od/businessplan/a/breakeven.htm