EXECUTIVE SUMMARY

The most important part of business plan is the executive summary. It includes the main business idea, market potentials, unique selling points, the service we are trying to sell, the profit making process, the company vision and finally the financial forecast. Our report is mainly concerned about the planning of online grocery business and Electronic business. Our strategy is to build an impressive shopping website that not only take the order but also deliver the goods to the doorstep for people who want to avoid the rush of shopping mall, traffic. The marketing of the site will be built around the core value that the site will offer. lthough our competition has built a simple store for ordering the product, this site will be reviewed by !eb award companies as a great destination for the all needed customer. !e will build our revenue and market share around this traffic and value added service. Our business model is based on the sales of the products over the website. "ecause the site is also intended to increase brand equity, awareness and best available product in cheapest market price, we are building for high traffic. Our model requires giving users an excellent free experience and to develop trust to increase sell#through. !e may lose money for at least three to six months while we build the traffic and develop our position for the long#term future. Our first class design, product quality and user friendly design are critical to our positioning as a dot#com company # we should be the best reviewed website in our category, and that will become the key to future sales. $owever, the core experiences for the every household have always been better, and with a better design team and a round of financing, our company is ready to grow with the market. The company will distinguish itself from its competitor as a full capacity center, rather than %ust a store front. The target customers of our site are all affluent& we have the luxury of using the latest technologies to impress the visitors with excellent design and animation. !e plan to release the site entirely in groswave' format as almost ()* of our visitors will already have internet is connected. !e will carry on the colorful and extremely well branded design of our company literature and logo # the decisions on basic aesthetics will not get in the way. The site will have a colorful and intelligent design, taking the ad campaign and product art into an interactive medium on the !eb. Our e#commerce site will be built on a three#tier structure. +riven by ,-.T/ servers and an II,T/ !eb server backed with bandwidth, the site will be coded mostly in 0old1usionT/ and ,2T/. !e will be taking our registration databases live to be able to 3

email updates on products and the website to customers. !e will offer customers the option to take themselves out of the list. The information architecture will be based on four fundamental arenas # the free valuable information arena, the product detail arena, the final purchasing arena, and the purchase administration arena. The purchase arena will require a 4erisignT/ certificate and a 0ybercashT/ connection. That will begin immediately because dealing with 0ybercashT/ can sometimes be a lengthy process. The administrative arena will be hosted on mirror servers that query to the live databases for migration into local databases. This server is hidden from Internet traffic and kept under high security even within the company. The entire set#up will be somewhat costly. !e will need five servers, 5 for in#house reasons, and three for !eb hosting reasons. Two of the !eb host servers will be serving traffic through 0old1usionT/ and ,2T/ in cluster, and the third will be a dedicated ,-.T/ server.

MISSION
5

Our business plan is created through some motives. $ere we tried to explain our missions and ob%ectives. Product Mission: !e will serve better quality product through a variety of domestic goods. Economic Mission: Operate and grow at a profitable rate through sound economic decisions. !e want to capture the market share and replace a great portion of conventional super shops items. Our goal is a little bit economical. !e are forwarding to reach our break#even point within one year and if we can manage to double up our revenue within 6 years we have a plan to extend our business.

VISION
Our visionary view of this business is that we don7t want to see any body7s panic. !e want to make people having a good likeness in buying. !e would like to make their day#to#day life easier. /oreover, ensuring customer satisfaction is ultimate goal.

LIMITATIONS
.ack of experience about merging $igh setup cost $igh maintenance cost Trying to find the best Existence of 0omparison .ikeness varies from person to person

INTRODUCTION
6

Our business idea is all about web based. !e would like to provide services to people with a view to making their day#to#day life more comfortable and easier. !e will provide customers with grocery items as well as electronic goods. nd provision of these goods will be done through web in the form of e#commerce. Our business will be beneficial for people who want to avoid the rush of shopping malls, traffic, etc. 2eople can order us through web and thus we8ll be able to know their demands, wants, etc. Then we8ll be able to act accordingly. 0ustomers can check samples of the products they want in the web. !e8ll receive orders and then will take every step to provide them the goods. Our services will save a lot of time of the customers. The ultimate goal of our business plan is to ensure customer satisfaction.

ORIGIN OF THE REPORT

This report is prepared for Ta9rina 1arah, .ecturer, 0ourse teacher of : Entrepreneurship;, Course # F-306, 1aculty of "usiness ,tudies at <niversity of +haka as a partial requirement of the course. Our course instructor has assigned to the students of the department of 1inance, "" 3=th batch, to make report on :"usiness 2lan;. This report is prepared during the 5 nd semester, Third >ear and would be submitted in the same semester. The standard procedure for the long, formal report is followed here as part of the instruction of the course instructor.

OBJECTIVE OF THIS REPORT

cquiring the concept of various "usiness 2lans.

To show the various aspects of our business plan. 2robability of new business plans in "angladesh.

DESCRIPTION OF VENTURE
?

ONLINE SHOPPING
+ay by day online shopping concept is developing by region in the world. The idea of online shopping was found few years ago and statistic show people are doing their shopping more then @) percent online .E"ay and ma9on has been running successful business in the world. "ut time is now in "angladesh ..ast two or three years few company has lunched online shopping facility in "angladesh .One can browse product in their website and choose then have to give order and have to choose one8s payment option . fter making payment they will send the order product in one8s address . 1ew numbers of reasons behind the necessity of online shopping in "angladesh are the following, aA Improved productivityB <sing e#commerce, the time required creating, transferring and process a business transaction between trading partners is significantly reduced. bA "est bargainB It is possible as one can visit numerous shops Csuppliers cA Do national boundaryB territory. dA Easy payment systemB /aking payment is easy. eA ,treamlined business processB <se of internet and with automation of business process can make business more efficient fA ,aving time and costB The cost savings stem from efficient communication, quicker turnaround and closer access to market. gA "etter 0ustomer serviceB 0ustomer can en%oy the convenience of shopping at any hour and anywhere in the world. hA 4arietyB The choices one can get for products are ama9ing. One can get several brands and products from different sellers at one place. In "angladesh this concept is not popular still now but day by day online shopping in "angladesh has been growing rapidly. There are some websites which provide online shopping option in "angladesh but neither delivers the products ordered nor offer return policy. Eather @ s one can order products from any place within the national

they charge high cost and are not up to date with the price and products of the market. They rarely modify the products and prices of day to day market. !e have planned to establish a business of online shopping and modify it with some more contemporary approaches and privileges. ,ome of them are the following,

1) Cash on delivery
!e want our customers to en%oy the opportunity of paying cash on delivery. 0ash on delivery F0O+A is a financial transaction where the payment of products andCor services received is done at the time of actual delivery rather than paid#for in advance. In some countries this remains a popular option with internet#based retailers, since it is far easier to set up for small businesses and does not require the purchaser to have a credit card. /ost small businesses prefer cash payment over credit card payment. Ecommerce has changed the way people shop for products and services and the manner in which a business sells its services to the customers. ,hopping from an online store is no longer restricted to a few elites and techno savvy people, as more and more customers are reali9ing the benefits of online shopping. 1rom books to electronic gadgets, garments to food items, customers can purchase anything under the sun from the comfort of their homes and offices. ,ome of the advantages that our customer will get through 0o+ are, Trust Factor ,ome customers have always been wary about paying for a product of service without actually getting in then and there. The fact that many customers fell victims to online scams worsened the situation. The 0ash on +elivery concept allows the customers to make the payment only when the product or the services is delivered to them. This increases the trust factor between the customers and the businesses resulting in more sales and revenue for the online store. The entire transaction remains transparent between both the parties under this model. Easier Transaction Model In "angladesh most online stores depended on 0redit 0ards and Internet "anking for payments and transitions. ,erving customers using these payment methods was easy in the developed countries, but in developing countries, many customers didn8t have access to any electronic means of payment. This is the case in "angladesh. 0ash on +elivery has brought this category of customers into the purview of =

Ecommerce. Thus, increasing the market si9e and penetration for the online stores substantially. Quality Improvement The customers pay only when they receive the product and are satisfied with its quality. They have the right to refuse poor quality products. This has ensured that online stores need to sell high quality products to the customers resulting in better quality and customer satisfaction. Le al !id <nless a customer has paid for a product heCshe doesn8t have the legal right over it. This works to the advantage of the online store as this keeps them at bay from legal responsibility over late delivery of the product or no delivery due to unavoidable circumstances. In case, our online store fails to deliver a product we can ask customers for an alternative product of their choice without having to worry about any monetary compensation or legal hassles.

1) "eturn policy
!e also plan to provide our customer with 6 day return policy. They can return the product if it is not satisfactory. The following items may DOT be returnedB ny item without a return authori9ation slip. <sed or damaged items +iscontinued products 2roducts that are not in their original packaging and containing all accessories Items over 6 days of the receipt date

#) Creatin a contemporary $e%site:

a) Pic&in a domain name' have to select it first. G domain name is one8s :signature; on the Internet. !e

%) "e isterin

a domain name# Then it has to be registered. +omain names are ll registrars have access to the

acquired through authori9ed domain name registrars.

same list of reserve names, but they may have different fee structures. c) Findin a (e% host# !e have to develop the website. 1or business transactions involving payment by customers, then a hosting package that includes space on a secured server is usable. ,ecured servers are servers that contain additional layers of encryption to protect the identity of the individual and the data that is being transacted from unauthori9ed access. d) (e% desi n# fter that we have to arrange web developers to design the website.

There are also web designers who design web sites for a fee. Examples of host and design websites in "angladesh are,

www.web.com.bd www.websitedesignbangladesh.com

e) Financial transactions on the (e%# In addition to having access to a secured server, we will need to design a transactions page that collects the customer8s financial information, transmits it to a service that can verify the transaction, and stores the data in our files. The unique feature of the website will be a very user friendly search engine for the visitors along with multiple categorical options. In addition there will be places for advertisement where we can put other multimedia flash advertisements with a payment. )) Lin&in the site# !e have to link the site with other, already recogni9ed sites

increases the chances of being found by both our prospects and by the search engines. 0reating a website needs a ,ystems +evelopment .ife 0ycle. 1ive ma%or steps in the ,ystems +evelopment .ife 0ycle areB 1) *ystems analysis+plannin #) *ystems desi n ,) -uildin the system H

.) Testin /) Implementation

SYSTEMS DEVELOPMENT CYCLE

LOGICAL DESIGN FOR THE ONLINE SHOPPING WEBSITE

PHYSICAL DESIGN FOR THE ONLINE SHOPPING WEBSITE

COMPONENTS OF A WEBSITE BUDGET

3)

INDUSTRY ANALYSIS
1) Competition
0ompetition always makes a business more challenging. 0ompetition motivates and sometimes compels a business to perform better and better. The most important thing is to identify the competitors and their natures. In our business we do have related competitors but some business is flourishing now#a#days in this area. Our competitors are some web based online shopping business in our country. There are some websites which provide online shopping option in "angladesh but neither delivers the products ordered nor offer return policy. Eather they charge high cost and are not up to date with the price and products of the market. They rarely modify the products and prices of day to day market. The advantages of our competitors are, They have an earlier market entry. 2eople have more knowledge about them. They have rather more customers than us.

!e also have some strength in contrast to them, 33

Offer benefits such as 0ash on delivery, return policy etc 2rovide a wide range of products and make the search engine very user friendly. Offer a contemporary website.

To overcome the competitor8s strengths and advantages we need to focus on time as they had an earlier entry. !e will go for an exposing advertising to ensure the very effective entry in this entry. If we can attract the customers by massive advertisement through social networking sites and websites we can be assured of our business increasing.

#) Current mar&et situation

Out of =? districts, Internet services are available only in = ma%or district headquarters. "TT" is planning to gradually roll out an I2 network up to the=? district headquarters. In Ianuary 5))5, the Internet facilities were extended to 35 districts. The pro%ect is running on very fast and today almost?) plus districts are getting Internet facilities. 1ollowings are the barriers of e#commerce in "angladeshB a) 4ery minimum number of users of web sites& %) 2oor telecommunication infrastructure with limited fixed#line access, unreliable connectivity and low bandwidth F(JA& c) .ack of technically efficient personnel& d) .imitations of supportive legal system. ,uch as, exchange controls, protection of telecommunication monopolies, restrictive trade practice and prohibitions& e) 2eople7s mindset is not very open to online shopping.

35

OPERATIONAL PLAN
1) -usiness oals
*hort term oals aA 2rovide efficient service with good price bA ,atisfy consumer needs with variety of products. cA /ake sure every transaction is fulfilled successfully from ordering to delivering. Lon term oals aA Increase sales by 6) percent in 35 months& bA Improve profits by 3@ percent within two years. cA Increase the variety and number of products with every passing year. dA Expand the business with each increasing year.

#) "esource re0uirements
36

a) Capital investments
Preliminary investment' 2reliminary capital of around Tk. =)) thousand shall be contributed. Loans and %orro$in : borrowed from bank. Land and -uildin # n office with H)) square feet will be enough for primary operations. The office building can be either be rented or bought. 1tilities' Electricity and power cost should get emphasis which will be around Tk. =))) per month. Miscellaneous !ssets# Other items like office furniture, working tables in the office, exhaust fans, storage racks and bins etc. are likely to cost Tk. ?),)))C#. mount up to Tk. ?)) thousand can be

%) Personnel re0uirement
There should be appointed efficient data entry officers who are expert in technical knowledge of computers and internet. There should be reliable field workers for delivering the products.

,) E2ternal resource )or %usiness e2pansion

In case of business expansion we will have to collect resource from external means.

.) Products
!e will primarily start with two types of products a) Electronics: Television, computers, mobile phone, air conditioner, laptops, cameras, watches, water purifiers, kitchen appliances etc. 3?

%) 3roceries: Eice, flour, oil, seasonal fruits etc.

/) Implementation
aA 4rder: !e plan to make contract with the companies with related products for five years to supply us with the asked products when they are ordered by our customers. !hen customers will order products through our websites it will be added in our shopping cart software. If they want to take collect on delivery system then they will have to give their address, number. They can also pay through credit cards. fter getting the selling price we will payback the company with related products. bA 5elivery: !e plan to deliver in two ways, either by cash on delivery or by credit card within 6 days. !e will also offer 6 days return policy. cA -illin : !e will bill the product at their market price and will add minor commissions for delivering. dA Customer service: !e plan to provide utmost customer service with our transactions. Our foremost concern would be the satisfaction of customers.

6) "is& !ssessment
reas of risk are a) 5emand: !hether the fluctuation of demand of customers be satisfactory or not. %) *upply: !hether the supply and delivery of products be in proper time and please the customer or not. c) Technolo y: Ket the help from the latest technology and using it in minimum cost. d) *ecurity: To address proper security system to protect the website from unwanted hacking and cyber crime. 3@

e) Economical: !hether the resources are providing good value or not. )) Implementation: !hether the plan is implemented by right or wrong people.

!ays for addressing risks are a) "educe ris&: !e can get through the demand risk by ensuring quality and reduced tariff for the advertisers. %) *pread the ris&s# Eisks can be spread among related entrepreneurs c) Plan -# If risks can not be diminished by multiple attempts rather increases then we will turn our product shopping website into service related website.

4r ani7ation *tructure

3=

MARKETING PLAN

3G

Mar&et potential: /arket potentiality means the estimated maximum total sales revenue of
our products in the market during a certain period. 1or determining the market potential of our service we first need to identify who are our target markets and then future prospect. !e will serve the people who are from mid income level. !e do not have any geographical barrier as it is a web based business. "ut we can state it in a different way. Our geographical expansion will be like that we will be covering areas beyond +haka i.e. other divisions F0hittagong, "arisal, Jhulna, Ea%shahi, ,ylhet, EangpurA

Tar et mar&ets: !e are targeting two distinct groups of customers, individuals and
corporate customersB Individuals# The individuals are people who are looking to give a friend, relative a gift or trying to satisfy his needs. These customers typically do not have the expertise in recogni9ing the peaches among the mixture of lemons and peaches nor the time to bargain over the products in the market. Individuals aging 3=#6@ are our main concern for electronic products. Corporate# The corporate customer typically buys electronic products in a large scale from the manufacturer or from the direct distributor at a lower rate. !e will provide same product at the same rate as the direct distributor does. /oreover we can supply the necessary grocery in case of special event Fe.g. picnicA

Mar&et si7e: The rapid growth of digital technology is fundamentally changing the world as
we know it. Our business is fully web based and so the number of internet users determines the potential market si9e of our product. The internet subscriber base in "angladesh Fexcluding mobileA currently stands at %ust over 3.@ million F"TE0, 1eb 5)35A. $owever, total desktop internet users in "angladesh is actually far greater than that number, likely driven by heavy usage in offices, internet cafes and multiple users accessing the internet from a single household.

3H

.ocal industry estimates suggest that in 5)33 access to the web was closer to H million users, having grown 6))* since 5)3) and expected grow a further @))* by 5)5) F"0K, 5)3)A.

1actors that will affect the potential market si9e Culture Environment "e ulation Economy Industry practice 5emo raphy Trends In)rastructure

Mar&et *trate y: The marketing strategy will first seek to create customer awareness
regarding the products offered, grow the customer base, and work toward building customer loyalty and referrals. The long#range goal is to not only dominate the online store business, but to create an icon brand. Initially we willB Engage in !eb#based marketing for the next year to generate awareness of the website and product information. "ecause Internet#based advertising has declined in recent quarters, the prices for advertising have consequently significantly dropped making the expenditure more cost effective. <tili9e outdoor advertising, providing general awareness to the public at large and direct individuals to the company7s website.

aA

Product classi)ications: we will sell two types of product throw our websiteB

3(

i. ii.

Electronic products Flaptops, mobile phones, mp6 players, dvd players etcA Krocery

bA

Pricin policy: 2roduct pricing is based on offering high value to our customers compared
to most price points in the market. The price of our products FgroceryA will considerably be lower from the market rate as we will collect them directly from the manufacturer. In case of electronic products we will become business partners or direct distributors of the popular brands so our price will be slightly lower than that is in the market. !e are intended to attract customers to our website so the overall pricing policy will be as such that it makes our website different from those of the prevailing web based selling stores. /oreover we will offer better quality and selection. 1actors that influence pricing *upply and demand Competitive pricin Cost and pro)it mar in !))orda%ility

cA

Product pac&a in : !e will use sophisticated packaging measures to ensure the safety
of the products FgroceryA and in case of electronic products, as the products are already packed by the manufacturer, we will %ust use a sticker containing the identity of our website.

dA

5istri%ution policy: !e will distribute the products to the customers with our
responsibility. Initially we will only concentrate in distributing the products within the capital and gradually we will expand our business to other cities.

5)

*ales Forecast: Our sales will be tracked using the same system that tracks our website visits
and contact requests. !e pro%ect sales of our product will remain roughly equal throughout the first year, with both categories rising from 6)#@)k per month at the beginning of the year to G@# 3))k per month by the end of the year. ,ales growth should be based on a) Mar&et penetration %) Mar&et e2pansion c) E2pansion o) product ran e d) 8e$ sources o) revenue

Mar&et Promotion: The plans for marketing and promotional strategies areB
2opular websites Fe.g. 1acebook, KoogleLA IT#based pages of newspaperFe.g. Onno loA 1ront pages of newspapers Online editions of daily newspapers to reach the DE"sFDon Eesident "angladeshisA 2ress release 1ree registrations in websites Fe.g. !eb "angladesh, KoogleA .eafletsC"anners ,tickers 1/ band radio stations of "angladesh

53

Mar&etin -ud et:

2articulars dvertising ,ales 2romotion +irect /arketing Total

5)36 3@,@),))) 6,G@,))) G@,))) 5),)),)))

5)3? 3?,G@,))) ?,5@,))) 3,)),))) 5),)),)))

5)3@ H,G@))) @,G@,))) @),))) 3@,)),)))

5)3= (,)),))) @,5@,))) G@,))) 3@,)),)))

5)3G 3G,)),))) ?,5@,))) G@,))) 55,)),)))

Analysis (SWOT
1) *tren th
55

4ery effective expected advertising channel Easy payment system 2roviding variety of products /ain purpose is to provide better customer service rather than making profit only.

#) (ea&nesses
Earlier entry by other few related websites. .ack of technically efficient personnel. /inimum number of users of web sites. 2oor telecommunication infrastructure with low bandwidth.

,) 4pportunities
The growing trend of using internet The popularity of online shopping is increasing The buying process by people without being physically present lowers their concerns. The time constraint of people of buying from showrooms is reduced Do bargain hassles

.) Threats
.imitations of supportive legal system. 0ybercrime exB $acking which needs adequate security system. 2eople8s mindset is still not very open towards online shopping.

ANALYSIS OF COMPETITIVENESS

56

!e have analy9ed the current market situation by the five factor model of /ichael 2orter. In this model there are five forces. "y those forces we have identified the competitiveness of the target market. It is the renowned process all over the world to evaluate the appropriateness to enter into a business. Competitive "ivalry $ithin an Industry: !ithin this market we have some strong existing competitors. ,uch as gora, /eena "a9ar, Kmart, 2rince "a9ar etc. "ut as we are going to start with the necessary items we don7t have such type of competitor. It is a stable business because it is related with day to day life. ,o it is appropriate business to enter. Exit barrier is also low, so certainly it is an attractive segment of market to choose. Threat o) 8e$ Entrants: Threats of new entrants for a business are always true. ,o we have always risk of those new entrants. 1or this business entry barrier is not very high, as a result in that sense it is an unattractive segment. In grocery business new entrants are always available, but if we can build ours as a brand name and gain the ma%or portion of the market share we will certainly be able to avoid the threat of the new entrants. Threat o) *u%stitute Product: !e are going to compete with super shops. !e have various types of readymade good, in this field we don7t have real substitute products. Other industry such as our Krocery industry can be substitute product. "ut as those are not our real substitute product, it is certainly an attractive market. Threats o) -uyers 3ro$in -ar ainin Po$er: Our buyers would not bargain with the price because we are offering in fixed price. s we are

starting from a fixed price it would certainly fulfill the customer demand, because customers are always price sensitive. It is also avoidable because the switching cost of our goods would be much high. Our product would be cheaper than that of super shops. Threats o) *uppliers 3ro$in -ar ainin Po$er: 5?

!e are going to launch a new trend of the grocery business. ,o the suppliers of that field are so much concentrated and organi9ed. !e emphasi9e on collecting items from diversified groups. !e will collect specific items from specific places. s a result our suppliers are widened in +haka. ,o, low bargaining power of the suppliers makes the target market so much attractive.

BUSINESS EXECUTION
The first and foremost task before the commencement of business is licensing the business under partnership act. !e have to set up the business with the help of capital expenditures. nd then these will be supported by personnel to continue operation and in case of expansion we will get 5@

the help from the external resources. !e will continue the research on development of our website through regular online survey participated by the customers. !hen an operational space will be collected by means of rent or buying along with the necessary equipment and personnel it will be right for us to start the operation. .ast but not the least we have to arrange a good web developer who is ready to develop our online shopping website for us according to our requirements.

Expected number of consumers for a particular financial year will be estimated, after that time periods we will compare the pro%ected and the actual number of customers. In case of material deviations we will find out the reasons operating behind the deviations and find out what is to be done to overcome this. a) Evaluate whether proper marketing promotions are going on %) 2erform a survey regarding what more customers want from us c) !atch whether the staffs are performing their duties properly.

FINANCIAL PLAN
$ere are financial highlights for pro%ected five year

Pro Forma Income *tatement

5=

The following table presents the pro forma income statement for pro%ected five years.

2articular ,ales .ess# 0OK, 3ross Pro)it Operating Expense: dvertising ,alary Offices ,upplies Eent <tilities +epreciation /iscellaneous Expense Interest F3@*A Total Operating Expenses Income before Taxes Taxes F?)*A 8et Pro)it

5)36 3,)),=@,))) =)6())) .9#6999

5)3? 3,3G,=),))) G6G3))) .,:;999

5)3@ 3,6?,G@,))) H6H@))) /9;9999

5)3= 3,55,5(,))) G=6G?)) ./;1699

5)3G 3,5=,)),))) G6=)))) /#.9999

5),)),))) @,3=,))) @)))) ?,H),))) G5,))) 6),))) 6),))) =,)),))) 6GGH))) 5,?H,))) ((5)) 1.:999

5),)),))) @,6?,))) @5@)) ?,H),))) G5,))) ?5,))) 6@,))) =,)),))) 6H3@@)) @G6@)) 55(?)) ,..199

3@,)),))) @@5))) @@))) ?,H),))) G5,))) 6G,))) ?G,))) =,)),))) 66?6))) 3G,?G,))) =(HH)) 19.:#99

3@,)),))) =35))) =)))) ?,H),))) G5,))) ?@,))) @6,))) =,)),))) 6?55))) 33,=(,=)) ?=GH?) <91<69

55,)),))) =?H))) =@))) ?,H),))) G5,))) @G,))) ?H,))) =,)),))) ?3G)))) 3),G),))) ?5H))) 6.#999

Pro Forma -alance *heet

$ere presents pro forma balance sheet for pro%ected five years. Pro Forma Balance Sheet:
2articular 5)36 5)3? 5)3@ 5)3= 5)3G

5G

!ssets Total 1ixed ssets Total 0urrent ssets Total Other ssets Total !ssets 3H,5@,))) ?@,)),))) 5,5@,))) 6/=/9=999 3=,)@,))) ?H,)),))) 6,5),))) 6<=#/=999 3=,5@,))) @3,@),))) 6,)),))) <9=</=999 3@,)6,))) ?(,5@,))) 6,G@,))) 6:=9,=999 3=,?),))) @),@),))) ?,6@,))) <1=#/=999

Lia%ilities > 4$ners E0uities .iabilities Total 0urrent .iabilities Total .ong Term .iabilities Total Lia%ilities 4$ners? E0uities Total Lia%ilities > 4$ners? E0uities H,@),))) ?),)),))) .:=/9=999 1<=99=999 6/=/9=999 (,G@,))) ?),)),))) .;=</=999 1<=/9=999 6<=#/=999 33,)),))) ?),)),))) /1=99=999 1;=</=999 <9=</=999 (,G@,))) ?),)),))) .;=</=999 1:=#/=999 6:=9,=999 3),5@,))) ?),)),))) /9=#/=999 #1=99=999 <1=#/=999

Pro@ect !nalysis:
The discount rate has been calculated using ! 00. The cost of debt is 3@* as it is a low moderate Eisk pro%ect and a speculative return on equity is 5)*, based on the expectations of the Entrepreneur. Therefore the ! 00 stands at MF3@N).?)A L F5)N).=)AO P 3H*. 5H

2arameters D24 IEE 2ayback 2eriod Fin yearsA +iscounted 2ayback 2eriod Fin yearsA

4alue 3=,@(,H53,65 @G.65* @.HH =.?G

"atio !nalysis:
Eatio 0urrent Eatio Det working capital FTk.A Kross 2rofit /argin Det 2rofit /argin +ebt#equity ratio +ebt# sset ratio Eeturn on asset Eeturn on Equity 5)36 @.5( 6=,@),))) ?)* 3.3?* 5.H@ ).G? 5.5=* H.G)* 5)3? ?.(5 6H,5@,))) 6G.)G* 5.(6* 5.H? ).G? @.33* 3(.==* 5)3@ ?.=H ?),@),))) 6G.GH* G.GH* 5.@H ).G5 3?.H5* @6.)G* 5)3= @.)@ 6(,@),))) 6G.@@* @.G?* 5.G5 ).G6 3).65* 6H.6(* 5)3G ?.(6 ?),5@,))) ?3.@(* @.3)* 5.6( ).G3 (.)3* 6).@G*

-rea& Even !nalysis:

ccounting breakeven point is the sales level that results in a 9ero pro%ect net income. In the initial stages of new venture it is helpful for us to know the point where we can avoid loss. This will provide us the insight into the financial potential for the start#up business. ,o that we will calculate break#even by this formula, ,ales, , P F1ixed 0ost L 4ariable 0ost # +epreciationA N F3 Q Tax EateA 1ollowing table shows the break even sales for pro%ected five years. 5(

>ear Total 1ixed 0ost Total 4ariable 0ost +epreciation ?)*Tax Eate "reak Even ,ales

5)36 65H6=)) =)6())) 6)))) ?)* @@G@@=)

5)3? 6GG6@)) G6G3))) ?5))) ?)* ===3@))

5)3@ 66)=))) H6H@))) 6G))) ?)* =((5?))

5)3= 66GG))) G=6G?)) ?@))) ?)* =@H3=?)

5)3G ?336))) G6=)))) @G))) ?)* =H?(=))

3raphical representation: The graphical representation of the break even sales presents below

"reak Even ,ales 6)

4ariable 0ost

1ixed 0ost

*tress !nalysis:
,tress test has been done by increasing the sales by @* and decreasing direct cost by @* for the best cost scenario and vice versa fro worst case scenario. $ere D24 is still high even in worst case.

*tress !nalysis 1nits *old Aaria%le Cost Per 1nit 8PA

-ase Case

-est Case @* higher than normal @* lower than normal

(orst Case @* lower than normal @* higher than normal G,56,H@6.@@

3=,@(,H53.65

53,66,G=3.@(

Per)ormance !nalysis:

,ales Kross 2rofit

3,)),=@,))) ?)5=)))

3,3G,=),))) ?6H()))

3,6?,G@,))) @)())))

3,55,5(,))) ?@(3=))

3,5=,)),))) @5?))))

63

Det 2rofit

3?H)))

6??3))

3)?H5))

G)3G=)

=?5)))

16000000 14000000 12000000 10000000 8000000 6000000 4000000 2000000 0 2013 2014 2015 2016 2017 S ales Gross P rofit Net Profit

Appendices
Pro@ected "avenue )rom *ellin :
Revenue
2articulars 5)36 5)3? 5)3@ 5)3= 5)3G

Income )rom Electronics Products

65

/obile .aptop /onitor Television Income from Others Electronics 2roducts Total Income from Electronics 2roducts Income )rom 3rocery Products Income )rom 4ther *ources Total Income

33,5@,))) @@,@),))) @,5@,))) 5,5@,))) G,5),))) H3,?@,))) 35,)),))) G,5),))) 3,)),=@,)))

3H,?),))) =),@),))) ?,G@,))) 6,G@,))) H,@),))) (@,(),))) 3?,@),))) G,5),))) 3,3G,=),)))

3(,?),))) G5,G@,))) G,6@,))) 6,@),))) H,G@,))) 3,33,G@,))) 3@,H),))) G,5),))) 3,6?,G@,)))

3@,6?,))) =@,@),))) ?,5@,))) 6,@),))) (,)),))) (G,@(,))) 3G,@),))) G,5),))) 3,55,5(,)))

3G,5),))) =@,G@,))) @,)),))) 6,H@,))) (,5@,))) 3,)3,)@,))) 3G,G@,))) G,5),))) 3,5=,)),)))

3E43"!PBIC!L P4*ITI48 4F T!"3ET M!"CET:

66

The target market is +haka 0ity 0orporation area for the first @ years. The firm uses simple distribution channel with 9one#wise dealers. The +haka city has divided into ( different 9ones cover 3( areas. The following table shows the ( 9ones and areas under each 9oneB
Dame Rone 3 Rone 5 Rone 6 Rone ? Rone @ Rone = Rone G 0ovring reas /irpur, 2allabi 0antonment, Jafrul /ohammadpur, +hanmondi Eamna, Te%gaon $a9aribag, .albag, Jamrangirchor Jotowali, ,hutrapur ,hyampur, +emra

6?

Rone H Rone (

/oti%heel, ,abu%bag Jhilgaon, "adda

I8T"E3"!TE5 M!"CETI83 C4MM18IC!TI48:

The firm uses pull strategy as its promotion mix strategy which is spending a lot on advertising and consumer promotion to build up consumer demand. It makes the promotion mix efficient enough to activate customers to ask for the product. $ere is a graphical view of the pull strategyB

1irm

5emand

0ustomer Mar&etin activities

6@