Course code: F-306

Course name: Entrepreneurship &

Project Development

Report on
A business plan on Green Thumb Private Ltd

Submitted to:
Jannatun Naym
Lecturer
Department of Finance,
University of Dhaka

Submitted By:

Date of Submission:
15 November 2014

GROUP # 16

Serial no

Name

ID NO

01.

Sanjida Rahman Liza

18-010

02.

Rahima Nazat Ara

18-074

03.

Fowziah Nahid Priya

18-096

04.

Hamida Akter Hera

18-146

05.

Sneharthi Ghosh

18-152

Section: B
B.B.A 18th Batch
Department of Finance
University of Dhaka

Remarks

LETTER OF TRANSMITTAL

15th November 2014

Jannatun Naym
Lecturer
Department of Finance
University of Dhaka.
Subject: Submission of report on A business plan of Green Thumb Private Ltd
Dear Madam,
We are obliged to submit the report entitled A business plan of Green Thumb Private
Ltdas a partial requirement of our course Entrepreneurship and Project Development (F306) under your instruction.
The report includes the undertaking of a project by the students on A business plan of Green
Thumb Private Ltd and thus enabling them to grab the mechanisms of a business plan.
Having learnt about the business plan in our theoretical learning, we are now assigned to
initiate a business plan.
We are extremely grateful to you for your valuable guidance, diligent effort and supervision.
We have tried our best to follow your instructions, schedule and discipline obediently.
Sincerely,
Sanjida Rahman Liza
ID: 18-010
On behalf of the group members of group no-16
BBA 18th Batch
Department of Finance
University of Dhaka.

ACKNOWLEDGEME
NT
At first, we would like to pay our thanks to the almighty Allah, for helping us to do all the
works with perfection.
We would like to express our sincere gratitude and deepest thanks to our honorable course
teacher Jannatun Naym who allowed us to perform the study and prepare the report,
instructed us in the right way and gave us proper guidelines for preparing this report.
Through preparing this report, we have gathered theoretical knowledge about a business plan
to launch a new product along with practical knowledge regarding entrepreneurial
environment in Bangladesh.
For the completion of this academic report with perfection, we cannot deserve all praise.
There were many books, journals and websites, which helped us by providing valuable
information, advice and proper guidance for the completion of this report in the scheduled
time.
The preparation of this report is of a great expectation in our BBA program because we have
learnt to develop a business plan. Therefore, we are quite happy to submit it.
So lastly, we would again like to express our heartfelt thanks to our course teacher for
providing such scope to gain practical knowledge and enrich our study with realistic
implication of knowledge.

EXECUTIVE SUMMARY

Green Thumb Private ltd. is a terrarium manufacturing & distributing company. Our
companys motto is to enable people to stay with nature. This company is in its start-up stage.
We will start with a small capital and loan. Company promoters conceive an idea of starting a
joint stock company and work-up on it to develop the idea and finally form the joint stock
company.
In terrarium construction business, almost all the production works are done manually. We
would train our workers and employees properly about their respective tasks and arrange
small workshops for them. These will increase their level of efficiency and effectiveness in
making quality products.
We would use modern information technologies in our business. The manufacturing and
service costs for terrariums are relatively lower than many other products. Some simple steps
should be followed in preparing the terrarium.
In our country, terrarium business is a very new concept. A few aquarium businesses are
producing aquarium with small capital. People will choose our product as our product needs
less care. We see a great future of our business. Through our research, we find that we can
have majority market share within 10 years.
Our target market will be the young generation who likes to spend on decorative uncommon
things and enhancing their collection. The stay-home-moms are another target customer.
Generally the like to decorate their homes in their own way and in free time they want to do
something pleasurable.
Various financial analyses have been done for this project. Most of them bear a positive sign.
These show that the project would be a profitable one both financially and socially. So, the
potential investors should invest on the project.

TABLE OF CONTENT

Serial
No.

Content

01.

Chapter 01: Introduction

02.

Page No.

Chapter 02: Business Introduction

Introduction:

08

Origin of the report:

08

Objective of the report:

08

Methodology:

08

Scope of the report:

08

Limitation of the report:

09

General description

10
11

Goal/potential
11-12
Managerial aspect
13
03.

04.

05.

Organizational structure
Production technology,
utility, ICT
Manufacturing cost
declaration
R&D plan

Chapter 03: Technical Aspect

Chapter 04: Marketing Aspect

Chapter 05: Financial Aspect

14-15
15-16
16-19

Production process
Sources of materials
Current scenario

19-24
24-25
26

SWOT analysis
Competitor analysis
STP analysis
Cost of project
Cost of production
Working capital
requirements
Projected income
statement
Projected balance sheet
Ratio Analysis

26-27
27-29
29-36
37
37-40
40
40-41
41
41-42

06.

Chapter 06: Socio-economic Aspect

07.

Chapter 07:
Conclusion & Bibliography

Payback period, NPV,

IRR

42-43

Scenario & sensitivity

analysis
Social & ethical impact
Contribution to the
economy
Conclusion
Bibliography

42-45
46
46
47
47

Chapter
#1
INTRODUCTION OF THE
REPORT
1

ORIGIN OF THE REPORT:

This report is a part of a requirement of B.B.A for our Entrepreneurship and Project
Development course (F-306) & will be submitted at November 12, 2014. While preparing
the report, we gave our best effort to emphasize on the practical implementation of the
knowledge that we learned in our course.

OBJECTIVES OF THE REPORT:

By preparing this report we can understand how an entrepreneurial project can be undertaken
and can be profitable from a business perspective.
Several objectives to conduct the study are:

To provide an overall overview about the entrepreneurial process in Bangladesh.

To arrange a business program to fill a market gap.
To introduce a completely new product concept in the market.
To make the program profitable for our economy.
To maintain a healthy environment.
METHODOLOGIES OF THE REPORT:

At first, we have made a working plan. Then we have made a discussion with all of our group
members and our course teacher, made a list of task. Information for the report has been
obtained both from primary and secondary sources.

SCOPE OF THE REPORT:

Everything has some advantage that helps that work to be completed thoroughly. We get
some scope which helps us to make a standard report. Major of them areEnough Time: We have got enough time to prepare a report so that we could gather
information with much tension free mind.
Easy access: We have a very smooth access to collect information by the guidelines of our
honorable teacher, by using our text & by internet. So, we didnt face any kind of trouble in
this sector.
8

LIMITATIONS OF THE REPORT:

Every study has some limitations. We faced some usual constraints during the course of our
preparation for the report. The major limitations are as follows:
Problems in collecting data: we have faced problems in collecting information for the
estimation of budget for the project of building terrarium.
Lack of knowledge: we dont have sophisticated knowledge about how to prepare a report
on project development. So we have to face some problems by this side.

Many terms were unknown to us.

No prior study has been done in any section, so very less number of documents is
available.
The time was very short to do this report.

Chapter
C
#2
Business
Business introduction:
introduction

General description of the venture:

Green Thumb Private ltd. is a terrarium manufacturing & distributing company. Our
companys motto is to enable people to stay with nature. Terrarium is a mini indoor garden in
a glass container. Inside the glass, the plants require low maintenance and are perfect for
people who don't have the time to care for a garden and do not have enough space for a small
garden at home but want to have one in their home. The companys head office will be at
elephant road and will have eight showrooms in Dhaka.
Industry background:
Terrarium business is a new business concept in our country A few aquarium businesses are
producing aquarium with small capital. However, none of them is producing terrariums
specifically. Therefore, there is no specific industry of this product.
Company background:
Companys mission:
Our mission is to be a leading company that delivers the different types of attractive
terrariums to our customers of all classes.
Companys vision:
Our company is committed to the relentlessness pursuit of innovation in terrarium and
creating, producing, and providing products that satisfies customers needs.
Company history:
Green Thumb Private ltd company is in its start-up stage. We will start with a small capital
and loan. In addition, we do have planned to convert our business in private ltd within five
years. After converting our business to private ltd, we would have a large amount of capital.
Then our company will have a steady growth and we can provide a handsome amount of
dividend.

10

Goal/potential of the venture and milestone:

Our goal is to become the leading terrarium manufacturing and distributing company in our
country. We have already selected our company name and registered it. We have also
established our legal entity. Our company is a private ltd. Company.
Uniqueness of the product:
Terrarium is a very unique a new product concept in our country. It can be made in different
shaped container and can be of different theme like a small desert, a jungle in containers.

Management aspect
TheoPromoters:
The person or a group of persons who takes necessary steps to give birth to a company form
of business organization are known as company promoters. Company promoters conceive an
idea of starting a joint stock company and work-up on it to develop the idea and finally form
the joint stock company. In other words, company promoters are those who discover the
opportunities to make money, investigate such proposition, assemble and finance them and
thereby give a shape of a joint stock company. Company promoters give not only the birth to
a joint stock company but also nourish it until it stands on its own feet.
FunctionsoOf0CompanyoPromoters:
*Conceive0an0idea0of0forming0a0company.
*Analyzeoprofitabilityoandfeasibility0ofotheoidea.
*Investigateotheoworkabilitoofotheoideaobyoconsultingoexperts.
* Decide the name and location of the company and the amount and form of its share capital.
* Prepare the Memorandum of Association, Prospectus and other necessary documents and
file them for incorporation.
In our company, the promoters list is given below:
Serial No.
1
2
3
4
5

Names
Sanjida rahman liza
Rahima najat ara heera
Fowziah nahid priya
Hamida akter hera
Sneharthi ghosh

Summary of qualification management:

11

Capital contribution
20%
20%
20%
20%
20%

In our company, owners are enough qualified to start the business. This chart shows their
qualification briefly.

Serial no.

Name

Designation

Educational
qualifications

1.

Mr X

CEO

B.B.A,
Finance.

2.

Mr Y

Production and HR B.B.A

in
Finance,
manager
M.B.A In management.

3.

Mr Z

Finance
and BBA in finance, MBA
marketing manager
in marketing.

M.B.A

in

Legal form:
According to the Commercial Code there are five forms of business entities, which are
created by entry into the Commercial Register: private limited company, public limited
company, general partnership, limited partnership, or commercial association.
Private Limited Company:
Limited company is a company in which the liability of the members or subscribers of the
company is limited to what they have invested or guaranteed to the company. Limited
companies may be limited by shares or by guarantee. And the former of these, a limited
company limited by shares, may be further divided into public companies and private
companies. Business in Bangladesh may be carried on by a company formed and
incorporated locally or by a company incorporated abroad but registered in Bangladesh. The
incorporation or registration is done by the Registrar of Joint Stock Companies and Firms
under the provisions of the Company's Act 1994.
Private Limited Company:
Restricts the rights to transfer the shares;
Limits the number of its members to minimum 2 and maximum 50 excluding the persons
employed in the company;
Prohibits any invitation to the public to subscribe for the shares or debentures of the
company and
12

Entitles to commence business from the date of its incorporation

Organizational structure:
The organizational structure of Green thumb ltd Company is described below.
Chief executive
officer

Production and
HR manager

Finance and
marketing
manager

Supervisors

Showrooms

(2)

(8)

Labor

Salesperso
n

(15)

(8)

Banks:
As we start the company, we have not enough money to continue all the process. We have to
take loan from the banks such as term loan.So we submit application in different banks to get
loan & DBBL & BRAC BANK are interested to sanction loan. In first year we took total
3500000 tk @ 16% from banks for 10 years.

13

Chapter
#3
TECHNICAL ASPECTS
A terrarium is a mini indoor garden in a glass container. Inside the glass, the plants require
low maintenance and are perfect for people who don't have the time to care for a garden or
just don't have a "green thumb". We can use a wide variety of plants and place them in small
glass containers that can go on desks, night tables, and other places where space is limited. A
terrarium will add a bit of outdoor beauty and peace to any living space.
Production Technology:
In the simplest sense, production technology is the machinery that makes creating a tangible
physical product possible for a business. To the small business, this means a workshop at the
very least, with more elaborate operations making use of machines and assembly lines.
Choosing a production scale model within a company's capital means is important; simpler
workshops tend to lead to lower production volume but cost less to assemble, while higher
output operations require more complex and costly machines, which are sometimes cost
prohibitive.
In terrarium construction business, almost all the production works are done manually. No
complicated or expensive machineries and technologies are used here. We would train our
workers and employees properly about their respective tasks and arrange small workshops for
them. These will increase their level of efficiency and effectiveness in making quality
products.
Utilities:
The following materials can be used to make a terrarium. All of these materials are available
to us and these are cheap also.

A clear glass jar, vase, bowl, glass, or whatever interesting glass container you have
on hand

Rocks, pebbles or recycled glass chunks

Activated charcoal (sometimes called activated carbon)

Potting soil appropriate for your plants

Moss (optional)

Figurines, sticks or decorative items (optional)

14

Various small plants

A scoop, spoon or shovel

Scissors

Gloves

Information and Communication technology:

Communication is essential to successful business operations and the technology of the
twenty-first century has become completely integrated in business interaction. Company
networks are faster, the internet has become a powerful force and wireless communications
have transformed the way business is performed. Even the latest technologies such as cloud
computing are being used to allow businesses to operate globally without sacrificing security
or limiting user access. We would use modern information technologies in our business.
These are described below.

Networking: Networking allows users to communicate through traditional voice and

video in a secure system. It also allows collaboration on reports, programming and
other document production, taking communications beyond conversational interaction
and into virtual partnerships. The concept of nodes linked together is essential,
whether it means connecting to a webpage, cell tower or using cloud-based
applications.
The Internet: The internet allows communication in two ways: static
communication through web pages, and dynamic communication through information
being exchanged. We would post our data to a web page such as product
specifications would allow instant access to the same data from anywhere in the
world. We would accept online product orders. This technology also can alert
employees of changes in costs or real-time chat between a customer service agent and
a customer or field representative.
Wireless communications: Wireless devices are now capable of doing everything
from making a phone or talking over a walkie-talkie to using the internet or company
network to run applications and send memos.
Cloud computing: Cloud computing takes networking to a whole new level.
Documents and programs can be stored in virtual drives or computers and can be
accessed by any authorized user through ordinary internet connections. It eliminates
data lost through system crashes, avoids problems with network downtime etc.

Manufacturing and Service Cost Declaration:

15

The manufacturing and service costs for terrariums are relatively lower than many other
products. The main costs are:

Salary of personnel for maintenance

Outlet rent
Accessories costs
Marketing and promotional cost
After selling service costs
R&D costs
Transportation costs
Raw materials costs
Equipments costs
Salary of managers

R&D Plan:
Research and development (R&D) is a valuable tool for growing and improving any business.
R&D involves researching market and customer needs and developing new and improved
products and services to fit these needs. Businesses that have an R&D strategy have a greater
chance of success than businesses that don't. An R&D strategy can lead to innovation and
increased productivity and can boost a business's competitive advantage.
Developing an R&D strategy
R&D strategy depends on the size of your business. In small businesses like ours, R&D tends
to focus more on product improvement because of budget and cost limitations. Larger
businesses may be able to dedicate more time and resources to R&D to introduce new
products as well as improve existing ones. The benefits of R&D are often long-term, so it's
important to remember that our investment in it may not result in short-term profits. As well
as product development and improvement, R&D can help we develop more efficient
processes and new ways of delivering services. We will have to consider following things for
developing
a
successful
R&D
plan
for
our
business.
C

16

Customer Needs:
We will assess the needs of our marketplace. Review sales of your existing product range. If
sales are declining, it may be because our products no longer meet the needs of our customers
or because competitors products offer a better alternative. Then we will ask your sales team
to research other products that customers are buying. The market research will help identify
opportunities and priorities for our research and development program.
Objectives
We will set objectives for research and development. The emphasis should be on
developments that will deliver the most profitable return. Developing a new product that will
enable us to enter growing market sectors or meet customer needs more effectively may
provide a more attractive return than updating existing products for sectors where demand is
static or falling. We will set performance targets for the new versions.
Process:
We will set up a formal project management process with key review and launch dates to
keep our research and development program on track and set a schedule that works back from
the planned launch date. The research and development phase will end when the product is
ready for production. In the later stages of the program, the emphasis is on manufacturing,
distribution and marketing activities. A formal review process is essential throughout the
program to ensure that the product meets its business, technical and financial objectives at
each stage. We will hold project meetings to assess initial ideas, evaluate proposals, test
concepts, prepare the business case monitor costs and review progress.
Team
We will appoint a research and development project team that includes staff with skills in
engineering, manufacturing, marketing and finance and increase the opportunities for
innovation and set up a forum on our website or intranet where employees can post or discuss
ideas for improving existing products and suggest opportunities for new products.
Product and Service:
We would produce mainly four types of products. These products can be of three sizes; small,
medium and large.
Types

Ingredients

Demonstration

Type-1 product

Small plants & accessories

17

Type-2 product

Bonsai, accessories

Type-3 product

Bonsai,
plants,
small
animals & accessories

Type-3 product

Plants, small animals &

accessories

* Bonsai: Bonsai means tiny trees which looks like a big tree but its size is like a small plant.
It is also called miniature.
*Animals: Here small animals like lizards, butterflies, tortoises, etc would be used to make
this tiny forest more natural and to beautify the terrarium.

Equipments:
There would be different equipments for the showrooms and for the head office and for the
main factory.
For Showrooms:

Desks
Shelves
Computers
Telephones
Chairs
Other equipments

For Head Office:

Desks
Computers
Chairs
Telephones
Projectors
Photocopiers
Other equipments
18

Location:
Our products are mainly for decorating houses or office desks to increase the natural beauty
and to create a healthy environment in our residences. So our main customers those creative
and artistic people who love to be with nature. They may be house wives, young generation
or restaurant or office people who want to decorate their desks with tiny forests. So, our
location of showrooms would be that places where these customers have easy access.
The locations of our showrooms are:
1
2
3
4
5
6

Katabon (Main factory)

New Market
University areas
Panthopath
Elephant Road (Head Office)
Gulshan area

Production process:
Making a terrarium is much easier than gardening. Some simple steps should be followed in
preparing the terrariums. These steps are described below:

19

Flow Chart:

SS tt ee pp 123 ..
SS tt ee pp 576 ..
CA hd od oi n s ig n
PC4A . l ld a e d na i nt n i in g n
pDA r rc e at pi i v na a ra t i g e n
gga c d& c d e si s o r
gLC l aha y sa se r r c s o a
pwni e lg as a t n e t r s i n
c o n t a in e
s o il
g
20

g &
ed g a
l
r

STEP 1: Choosing and Preparing the Container:

At first we have to choose the appropriate glass jar for making terrarium. Glass jar may be of
different sizes and shapes. Generally round shape and rectangular shape glass jars are popular
in the market. Then we have to remove any price tags or stickers from the vessel and wash
both the interior and exterior thoroughly to ensure that there are no unwanted residues that
could affect the health of your plants. After that we have to envision how we want to arrange
the plants inside the jar.

STEP 2: Adding the Drainage Layers:

Once the container is ready, we will fill the bottom with rocks or pebbles. This is to create a
false drainage layer so water can settle and not flood the plant. The depth of the rocks totally
depends on the size of the container, but aim for 1/2 to 2.

STEP 3: Adding the Activated Charcoal:

The charcoal looks exactly like what we would expect it to and its messy. Sometimes it
comes as small granules and other times it comes as shardseither works. We dont need
much, just enough to cover the rocks. The charcoal will improve the quality of the little world
including reducing bacteria, fungi and odors.

21

STEP 4: Adding Soil:

Again, cactus and succulents need a special soil compared to most other plants, so we must
be sure to get the appropriate bag depending on which plants were using. Then we would
add enough soil so the plant roots will have plenty of room to fit and then grow. We would
aim for a depth slightly greater than the height of the plants pot.

STEP 5: Planting the plants:

We will take the plants out of the pot and break up the hard soil ball until we get down to the
roots. If we are breaking the plant into multiple parts, we should be gentle. We may also want
to trim the roots if they are especially long; we dont need to worry, theyll grow back. Using
a spoon, your fingers, the end of a brush, or even a pencil, we will dig a well to place the
plants roots in. Then we will add more soil around the top and compact the soil down around
the base of the plant. Continuing placing the little plants in the container we will try to keep
them away from the edges. The leaves are likely to touch the sides but our aim is to keep
them away as much as possible.

22

STEP 6: Adding Accessories:

After were done planting we can add little accessories like a blanket of moss (dried or
living), little figurines, old toys, glass beads, shiny metal object, sticks, stones, or even a layer
or rocks. This is our little world and we can put whatever we would like in there.

STEP 7: Cleaning and Watering:

We will likely have dirt all over the sides of the container, so we must wipe them down so
that we can enjoy the beautiful living world inside. Then we will give the terrarium a little bit
of water. Unlike most of the house plants, a terrarium doesnt need to be soaked. Just a couple
of shots of water should be given to get it started.

23

Tips & Tricks followed in maintenance:

- Over time, we should monitor the terrariums water needs based on how dry the soil is. For
terrariums with closed lids, if water is dripping down from the top, the lid should be opened
to let some evaporate. Likewise, we may need to add more if it looks parched. We shouldnt
need to water them very often.
- If leaves die or wilt, we should remove them from the terrarium immediately to maintain the
health of the little eco system. If an entire plant dies, we would take it out.
- We wont place in direct sunlight. It should be remembered that these are essentially little
greenhouses and direct sunlight through the glass will trap heat and scorch the plants. It
should be placed in indirect light for best results.
Supplies and sources of raw materials:
The main raw materials used in preparing a terrarium are the plants, glass jars, soils and
rocks. All other materials are found in local markets easily and their costs are relatively
cheap. Plants, soil, rocks etc. can be collected from various nurseries at a cheap price. We
have also a plan for making our own nursery in future. Then we would be able to supply own
plants for making terrarium. There are some glass manufacturing companies in Bangladesh.
We can purchase glass jars from them.
Sources of plants, soils, rocks etc.
Nurseries

Address

Garden Center

House # 248, Road # 19, Dhanmondi R/A

Hortico

260/5Modhubazar,West Dhanmondi R/A

Shakh Nursery

1/14, ( 3rd floor), south Pllobi, section # 7

Torukunja Nursery (Pvt.) Ltd.

Road # 9/A (New), Dhanmondi

Mitasha Screw Traders

247/1/17 Nurul Haque Market, Nawabpur

These nurseries are located at Dhaka City. As the number of suppliers is pretty large, the costs
of the plants would be small.
24

Sources of glass jars:

Glass Manufacturers

Address

The Bengal Glass Works Ltd.

139 Motijheel C/A (10th floor)

Nasir Glass Inds. Ltd.

House # 16, Road # 09, Baridhara Socitety

J.M.S. Glass Industries Limited

Siddirgonj, Narayangonj.

Padma Glass Ltd

Barisal District Town.

Almost all of these suppliers are near to Dhaka City. We can purchase our glass jars from
them.
Structure and Civil Work:
Up to first five years of our business we have no plan for constructing any building and do
any civil works. We would hire our show rooms, head office and the main factory. But we
have a plan for purchasing land after five years and for making our own nursery.

Chapter
#4
Marketing Aspect
25

Current scenario of terrarium business in Bangladesh:

In our country, terrarium business is a very new concept. A few aquarium businesses are
producing aquarium with small capital. However, none of them is producing terrariums
specifically.
Situation analysis:
Market summary:
We have mentioned earlier that there is no existing terrarium business in our country. So, no
market exists for this business. We will be the first constructor and providers of terrariums in
our country. We have a target market, which we will discuss later in the segmented market
part. We will open our showrooms in different parts of Dhaka city initially and then in other
cities.

SWOT analysis:
SWOT Analysis is a useful technique for understanding Strengths and Weaknesses, and for
identifying both the Opportunities open and the Threats faced by a business. Strengths,
weakness, opportunities and threats faced by our organization are given below:
Strengths:
1) We will offer a unique product, which has not been offered by anyone else in our
country.
2) We will provide our product at a cheaper price than the substitute products available
in our country.
3) There will be enough demand of our product in the market because people are more
aware of environment and nature now days in our country.
4) As the income of people in our country and their choice for natural products is
growing, they are demanding more decorating products like that we are supplying.
5) We will provide after sale customer care, which will be valued to the customers
importantly.
6)
Weakness:
1) Our company has little market presence or reputation.
2) We have a small staff, with a shallow skills base in many areas.
3) We are vulnerable to vital staff being sick, and leaving.

26

4) Our cash flow will be unreliable in the early stages.

5) As the concept is new, people will take time to actually know and have the product.
Opportunities:
1)
2)
3)
4)

Having a unique product concept is our greatest opportunity.

Technologies for construction of terrariums are available in our country.
There is a growing trend of home and office decoration in our society.
Government is emphasizing on planting trees and growing awareness of saving the
nature.

Threats:
1) Though there is no direct competitors in the market of us but indirect competitors can
also be harmful.
2) New technologies in aquarium business that will raise its demand can also be a threat.
3) Power of suppliers of raw materials may be high.
4) We can face problems collecting the raw materials for our product as most often we
have to collect different types of rare plants and small creatures.

Competitor analysis:
We can consider five key concepts to run the competitor analysis:
Our company's competitors:
We have already mentioned that aquarium producers are our main competitors. . These
small business entrepreneurs have some show rooms in different parts of the country and
they are mostly situated in the large towns like Dhaka, Chittagong, Mymensingh, shylet
etc. In Dhaka the aquarium constructor and distributors can be seen in different large
markets. As, our business concept is new we can take aquarium business as our
competitor as they are providing substitute products for us.
Competitor product summaries:
Our competitors provide different types of aquariums of different size. Different types
of colored fishes are their main raw materials. These fishes are kept in aquarium in
different atmosphere.
Competitor strengths and weaknesses:
Strength:
1) Aquarium businesses are growing rapidly which can be a bad news for us.
27

2) People are demanding more of their products.

3) Fishes of different colors are the main attraction for the customers as they are
seen like pets.
4) Some of our competitors already gained reputation as they have introduced
their business earlier.
Weakness:
1) Extreme care is needed for their products.
2) The customers have to bear extra expenses and extra time for feeding the
fishes, changing the water etc.
3) Fishes can die from any diseases.

The strategies used by each competitor to achieve their objectives:

They follow different strategies to achieve their objectives. Their main objective is to
hold the remaining customers and attract the new ones. Offering new technology
products, offering products within most possible short time are also their strategies.
The market outlook:
However, people have demand for aquariums but they also face problems to feed the
fishes, cleaning the aquariums and changing the water. As they face time shortage, they
have no time for doing these works. Therefore, people will choose our product as our
product needs less care. People can save their time and can decorate their home and
office. So, we see a great future of our business. Through our research, we find that we
can have majority market share within 10 years.

Situation: current
Aquarium
business
100%

28

situation: 1-5Aquarium
years
business
30%
70%

Terrurium
business

situation: 5-10 years

Aquaruim
business
60%

40%

terrarium
business

Graph: market outlook

STP Analysis:

29

Market Segmentation:
Segmentation refers to a process of dividing a large unit into various small units which have
more or less similar or related characteristics

Market segmentation is a marketing concept which divides the complete market set up
into smaller subsets comprising of consumers with a similar taste, demand and
preference.

A market segment is a small unit within a large market comprising of like-minded

individuals.

One market segment is totally distinct from the other segment.

A market segment comprises of individuals who think on the same lines and have
similar interests.

The individuals from the same segment respond in a similar way to the fluctuations in
the market.

We will segment the market in the following way:

Psychographic segmentation

The basis of such segmentation is the lifestyle of the individuals. The individuals
attitude, interest, value help the marketers to classify them into small groups. It is the
most crucial market segment for our company to target. Social class, lifestyle, personality
characteristics will the most influential variables for our product. For example : Bonsai
terrarium is costlier and its demand and sales will be depending on social class
differences.

Behavioral Segmentation

The loyalties of the customers towards a particular product help the marketers to classify
them into smaller groups, each group comprising of individuals loyal towards a particular
brand .Occasions, benefit sought, user status will be the variables affecting our products
demand.

Geographic Segmentation

30

Geographic segmentation refers to the classification of market into various geographical

areas. A marketer cant have similar strategies for individuals living at different places. We
can take lightly the geographical difference as its related to ones hobby, taste and
preferences. As we will be offering product though online we can make it easily available to
people wanting it.

Basis for segmentation:

Gender:
People having willingness to keep a terrarium in their houses, offices and restaurants for
decorating those places will be our target customer. But female customers will response more
towards these product
Age:
20-30 years people will be more demanding the product. They will find this product
as decorative much like a show piece.
Age group

30-40 years people will keep this product to teach their children about the nature,
trees, water cycle introducing their children with the environment. They will be also buying
the product for decoration of the house.
Age group:

Age limit 40 or more will be demanding the product to feel the beauty of nature
which they missed during their busy working life. Also they can pass their free time by taking
care of the terrariums. It will be beneficial for their body and mind.
Age group:

Income group: people with high medium low income can afford the product, as we will offer
different price for different feature of the product.

Target market:
With the current state of the economy, having a well-defined target market is more important
than ever. No one can afford to target everyone. Small businesses or start up like us can
effectively compete with large companies by targeting a niche market. Target marketing
allows to focus marketing budget and brand message on a specific market that is more likely
to buy from us than other markets. This is a much more affordable, efficient, and effective
way to reach potential clients and generate business.
Our target market will be the young generation who likes to spend on decorative uncommon
things and enhancing their collection. The stay-home-moms are another target customer.
Generally the like to decorate their homes in their own way and in free time they want to do
something pleasurable. Taking care of a terrarium is a great fun and refreshing. Terrarium will
31

provide them the chance to spend their time joyfully people aged between 40 or above also
will be our target customer. In front of parks we will be offering manly them who come for
exercising, jogging.

Positioning:
Positioning outlines what a business should do to market its product or service to its customers. How
it differentiates itself in the market place. For this, we have done a marketing mix analysis:

The Marketing Mix Analysis

Take a step to shelter the nature. Live in green! Feel
like closer to the nature

32

Successful marketing depends upon addressing a number of key issues. These includes what
a company is going to produce, how much it is going to charge, how it is going to deliver its
products or services to customers and how it is going to tell its customers about its products
and services. That is it makes itself prepared to plan the details of its marketing mix.

A firms marketing mix is the set of controllable, tactical marketing tools that is used to
produce the response it wants in the target market. Initially we have organized our marketing
mix into four categories product, price, promotion, and place. Traditionally these tools or
considerations were known as the 4Ps.But as marketing became a sophisticated discipline, 3
new Ps were added namely people, physical evidence, process. These considerations are
now known as 7Ps of Marketing. So we have included those additional three Ps into our
marketing mix analysis for making it more up-to-date, understandable and acceptable to our
potential customers

33

Product identification:
A firms product is the good or service that is offered to the target market. It satisfies the
customers demand and increases their utilities. Every product is subject to a life-cycle
including a growth phase followed by a maturity phase and finally an eventual period of
decline as sales fall. Determining the product to be sold is central to the firms entire
marketing effort. A terrarium is a type of miniature ecosystem of plants. Terrariums are
usually sealable glass containers that can be opened for maintenance and to access the plants
inside. However, this is not essential, terrariums can also be made using other transparent
materials and some are open to the atmosphere rather than being sealed. Terrariums are often
kept as decorative or ornamental items in the same way as aquariums. Closed terrariums
create a unique environment for plant growth, the transparent walls allow for both heat and
light to enter the terrarium. The sealed container combined with the heat entering the
terrarium allows for the creation of a small scale water cycle. Because of the different
conditions within, terrariums can be classified into two types: closed and open.
Closed terrariums:
Tropical plant varieties, such as mosses, orchids, ferns and air plants, are generally kept
within closed terrariums due to the conditions being similar to the humid and sheltered
environment of the tropics.
Closed terrariums also require a special soil mix to ensure both good growing conditions and
to reduce the risks of microbial damage.

Open Terrarium:
Open terrariums are better suited to dry plants such as succulents. Not all plants require or are
suited to the moist environment of closed terrariums. So for plants adapted to dry climates,
open, unsealed, terrariums are used to keep the air in the terrarium free from excess moisture.
Concept statement:
We have tried to provide the description of our selected product Terrarium which we are
going to offer to our target market through a concept statement.

34

GREENTHUMB PUBLIC LTD COMPANY LTD

Concept statement

Product:
GREENTHUMB PUBLIC LTD COMPANY LTD

will sell environment-friendly, mini-

forest like terrarium to nature-loving people who like to stay close to nature but
cannot because of the din and bustle of city life.A terrarium is an enclosed or
partially enclosed structure made of glass or transparent plastic for growing
plants and sometimes housing small animals. Often the plants and animals have
specific needs that require carefully controlled conditionsThe product will be sold
through small stores in various renowned areas of Dhaka City.
Target Market:
People who are the true lover of nature wanting to live in green environment and
make their homes decorated with with something of different concept. Natural
decorative product is truly gonn be eye catching. Many a people want to make a
garden but cannot as space shortage or insufficient capital or lack of time. Young
generation, stay home moms are our main target market.
Why keeping a terrarium:
Terrariums are mainly used for decorative purpose. They generate oxygen which
vital

for

our

living.they

help

to

improve

the

mental

health

of

people.

Special Feature or uniqueness of the product:

The product is decorative as well as useful .it needs no special care. It gives a
view of a forest which is very eye-catching.Terrariums with bonsai is very

Pricing policies:
attractive.Some small frogs, snakes and turtles require a natural feeling habitat of
Price is the amount of money customers pay to buy a product. The price is very important as
it determines the firms earnings, profit and survival. When setting a price, we considered the
35

perceived value of customer for the product. The price of a product sends a clear message to
our target market. If the selling price of a product is set too high, a company may not achieve
its sales volume targets. If it is set too low, volume targets may be by achieved, but no profit
earned.
We had several policies such as Cost based pricing, Value-based pricing, Segmented
pricing, Promotional pricing. When the question of determining the price per terrarium
came, We have chosen cost based pricing policies to determine the price which we shall be
charging for our product. We set the price of our product at 300 to 25000 per piece of
terrarium depending on the size, ingredients and maintenance cost.

Promotion:
Promotion is one of the market mix elements. Promotion refers to raising customer awareness
of a product or brand, generating sales, and creating brand loyalty. Promotion is also found in
the specification of five promotional mix or promotional plan. These elements are personal
selling, advertising, sales promotion, direct marketing, and publicity. A promotional mix
specifies how much attention to pay to each of the five subcategories, and how much money
to budget for each. A promotional plan can have a wide range of objectives, including: sales
increases, new product acceptance, creation of brand equity, positioning, competitive
retaliations, or creation of a corporate image. We will be using promotional tools like leaflet
distribution, free samples, personal selling , fair to make customers aware of our product,
make them interested in that. It will also help us to get their informed feedback and
suggestion for and experience with the product.

36

Chapter
#5
FINANCIAL
ASPECT

Part 5 :Financial aspects

Cost of Project:
Land and site
development
Building and civil works
Plant and machinery

Preoperative expense

Computer
Telephone
Photocopier
Vehicle
Other office equipments
and furniture
R & D cost
Legal fees
Marketing cost

Total

330000
100000
20000
1000000
550000
100000
100000
100000

2300000

Means of financing:

Funding from the shareholders

Loan from banks

Cost of production:
Raw material costs
Unit Costs

Type-1
Smal
l

Mediu
m

Type-2
Larg
e

Smal
l

Mediu
m

Type-3
Larg
e

37

Smal
l

Mediu
m

Type-4
Larg
e

Smal
l

Mediu
m

Large

Glass Jar

100

500

1500

100

500

1500

100

500

1500

100

500

1500

Plants

20

50

100

20

50

100

20

50

100

20

50

100

Bonsai

1000

2000

3000

1000

2000

3000

20

40

60

20

40

60

20

40

60

20

40

60

10

20

40

10

20

40

10

20

40

10

20

40

Small
animals

20

100

550

20

100

550

Total
material
cost

150

610

1700

1150

2610

4700

1170

2710

5250

170

710

2250

Soil,
fertilizer &
rocks
Accessorie
s

Utilities costs:
Costs

Costs per month

Annual costs

1667

20000

667

8000

333

4000

667
3333

8000
40000

A scoop, spoon or shovel

Scissors
Gloves
Hand wash
Total costs

Labor costs
Costs

Costs per labor

No. of
Labor

Cost per
month

Annual costs

Labor
costs

6000

15

90000

1080000

38

Factory overhead costs

Factory overhead costs refer to indirect factory-related costs that are incurred when a product
is manufactured. Manufacturing overhead includes such things as the electricity used to
operate the factory equipment, depreciation on the factory equipment, factory supplies and
factory equipment. Factory supplies and factory personnel (other than direct labor) are
example of factory overhead costs.
Costs
Utility costs
Factory supervisors salary
Factory rent
Packaging costs
Total costs

Costs per month

Annual costs(Tk.)

3333
20000
20000
2500
45833

40000
240000
240000
30000
549996

Projected Sales:
At the first year 2014 our projected sales will be Tk.6789500. at the second year it will grow
at a rate of 8%. And it will continue to grow at the same rate up to the fifth year 2018.
Year
Projected
Sales

2014

2015

2016

2017

2018

6789500

7332660

7919273

8552815

9237040

The projected sales of five years are represented on the following graph:

39

Projected Sales
10000000
9000000
8000000
7000000
6000000
5000000
4000000
3000000
2000000
1000000
0
2012

Projected Sales

2014

2016

2018

2020

Learning Curve:
Learning curve is the premise that people and organizations get better and efficient at their
tasks as the tasks are repeated. Here, our cost of labors is projected to be Tk.1080000. But as
the time would pass the employees or labors of our organization would be efficient at their
works. They would be able to produce the same product at lower cost and at minimum time.
So, at the second year 3% efficiency would be achieved and the costs would be less. Finally,
at the fifth year, 1% efficiency would be achieved. The number of labor needed would be less
over time and labor related costs would also decrease.
Year
labor cost
Efficiency achieved
per year

2014

2015

2016

2017

2018

10800
00

104760
0
3

102664
8
2

101124
8
1.5

100113
6
1

The projected costs of goods sold of five years are represented on the following graph:

40

labor cost
1100000
1080000
1060000
labor cost

1040000
1020000
1000000
980000
960000
2013

2014

2015

2016

2017

2018

2019

Working capital requirements and its financing:

Items
Raw material
Salary
Rent
Utilities
Transportation cost
Marketing and promotional cost
After sales service cost

Amount(Tk.)
1527400
2928000
1680000
40000
120000
30000
25000

Projected Income Statement

Income statement of a company incorporates the sales or revenues of the organizations and
then the expenses of the same period are subtracted from the revenues. After that the net
profit for the period is found. The projected income statements of our organization for the
first five years are given below.
Income Statement

2014

2015

2016

2017

2018

Net Sales
cost of goods sold
gross profit
administrative
expense
selling expense
profit from
operation
finance cost

6789500
3307400
3482100
1450000

7332660
3373548
3959112
1450000

7919273
3441019
4478254
1450000

8552815
3509839
5042975
1450000

9237040
3580036
5657004
1450000

2023000
9100

2033115
475997

2043281
984973.3

2053497
1539478

2063764
2143239

160000

160000

160000

160000

160000

41

net profit before tax

income tax
net profit after tax

-150900
0
-150900

315997
118498.9
197498.
1

824973.3
309365
515608.
3

1379478
517304.4
862173.
9

1983239
743714.7
1239525

Projected Balance Sheet

Balance sheet of an organization represents the financial position of an organization at a
specific date. It includes assets, liabilities and stockholders equity of an organization. The
balance sheets of the next five years of our organization are given below.

ASSETS
current assets
cash and cash equivalents
accounts receivable, less allowance
for doubtful accounts
Inventories
total current assets
property, plant and equipment
accumulated depreciation
net property,plant and equipment
total long term assets
total assets

2014

2015

2016

2017

2018

12911
9
67895
0
33947
5
11475
44
20000
00
10000
0
19000
00
19000
00
30475
44

50001
2
73326
6
36663
3
15999
11
20000
00
20000
0
18000
00
18000
00
33999
11

83417
8
79192
7.3
39596
3.6
20220
69
20000
00
30000
0
17000
00
17000
00
37220
69

11898
42
85528
1.5
42764
0.7
24727
64
20000
00
40000
0
16000
00
16000
00
40727
64

15687
71
92370
4
46185
2
29543
27
20000
00
50000
0
15000
00
15000
00
44543
27

19844
4
10000
00
11984
44

16867
7.4
33735.
48
20241
2.9
10000
00
12024
13

17205
0.9
34410.
19
20646
1.1
10000
00
12064
61

17549
2
35098.
39
21059
0.4
10000
00
12105
90

17900
1.8
35800.
36
21480
2.2
10000
00
12148
02

20000

20000

20000

20000

20000

liabilities and shareholders equity

current liabilities
accounts payable

16537
0
33074

accrued expenses
total current liabilities
long term liabilities
total liabilities
shareholders equity
common stock
42

00
15090
0
18491
00
30475
44

retained earnings

total shareholders equity

total liabilities nnd shareholders
equity

00
19749
8.1

00
51560
8.3

00
86217
3.9

00
12395
25

21974
98
33999
11

25156
08
37220
69

28621
74
40727
64

32395
25
44543
27

RATIO ANALYSIS
Ratios
Profitability
Ratios
Return on
Assets
Return on
Equity
Profit
margin
Liquidity
Ratios
Current
Quick

Formula

2014

2015

2016

2017

net income/total asset

-0.049515282

0.0580892

-0.081607268

0.08987408

-0.022225495

0.02693404

0.2116
93
0.3012
3
0.1008
06

net income/total
equity
netincome/sales

0.13852
73
0.20496
37
0.06510
8

5.78270948

7.90419562
6.09288302

11.742
06
9.7113
82

4.072025357

9.79394
45
7.87608
41

0.32813308

0.29412535
0.45506296

0.2455
33
0.3493
85

0.540803634

0.26866
78
0.39751
82

current asset/current
liability
current assetinventory/current
liability

Overall financial stability ratios

Debt
total debt/total asset
Debt to
Eeuity

total debt/total equity

Payback period
Initial cash
outflow

Year

Cash
inflows/outflow
s

2300000

2014

-2900000.00

43

Balace

5200000.
00

Payback
period

2015

-50899.87

2016

297498.29

2017

605607.94

2018

962173.50

2019

1116121.264

2020

1294700.666

2021

1501852.773

Net Present Value:

Calculation of discount rate:
We have calculated the wacc to determine our discount rate.
WACC=

ke

we

ke

rf

+ (

kd

+
rm

(1-tc)
rf

wd

=.06+1(.16-.06)
=.14
kd

rd

(1-tc)

=.16 (1-.35)
=.104
Average capital=2000000
Average debt =1000000
Total

3000000
44

5250899.
88
4953401.
58
4347793.
64
3385620.
14
2269498.
88
974798.2
1
527054.5
6

7.64906376
1

we

2000000
= 3000000

=.67
wd

1000000
3000000

=.33
WACC = .16.67 + .104.33
=.141 or 14%

Scenario and Sensitivity analysis

Sensitivity analysis examines how sensitive a particular net present value calculation is to
changes in one variable. This analysis is also called as what if analysis and bop (best,
optimistic and pessimistic) analysis. And scenario analysis is the analysis of NPV by
changing more than one variable. Some variables with their pessimistic, best and optimistic
estimations are given below.
Variable

Pessimi
stic

Market size
(per year)
Market share
Price
Variable cost
fixed cost (per
year)
investment

Expected or
Best

Optimist
ic

1000

1350

1600

20%
80%
3500000
3800000

30%
100%
3307400
3633000

50%
120%
3000000
3400000

2500000

2000000

1500000

Our estimations about sales growth rate, tax rate, terminal growth rate, discount rate,
depreciation rate are given below.

sales growth rate

45

8%

tax rate
terminal growth
rate
discount rate
depr,depl&amort.
capital
expenditure
growth

38%
2%
14%
5%
Variab
le

Base or best case

Particulars

2014

2015

2016

2017

2018

NET SALES

6789500

7332660

8552814.62

9100

475997

100000

100000

7919272.
8
984973.2
65
100000

100000

9237039.
794
2143239.
205
100000

160000

160000

160000

160000

160000

-150900

315997

1379478.31

net income

-150900

depreciation,depletion&am
ortization
Capex

100000

197498.12
5
100000

824973.2
65
515608.2
91
100000

100000

1983239.
205
1239524.
503
100000

-949100

-448398

-418110

-456566

-477351

100000

100000

100000

100000

100000

-2900000.00

-50899.87

605607.94

297498.2
9
3

962173.5
0
5

8178474.
78
5

0.87719298
2
-2543859.65

0.7694675
28
39165.801
02

0.674971
52
200802.8
72

0.59208028

0.490969
544
472397.8
864

0.490969
544
4015382.
034

Operating Profit (EBIT)

depreciation,depletion&am
ortization
Interest
pretax income(EBT)

change in NWC
after tax interest expense
FCFF

discount factor
pv of FCFF

Firm value

1000000
Equity value

862173.942

2000000.00

2464125.86

less:LTD

1539478.31

terminal
value

1464125.86

Pessimistic case
46

358568.518

Particulars

NET SALES
Operating Profit (EBIT)

depreciation,depletion&am
ortization
Interest
pretax income(EBT)
net income
depreciation,depletion&am
ortization
Capex
change in NWC
after tax interest expense
FCFF

discount factor
pv of FCFF

Firm value

less:LTD
Equity value

2014

2015

2016

2017

2018

4023407

125000

4345279
.6
4347294
.6
125000

4692901.
925
4694917.
925
125000

506833
4.1
507035
1
125000

547380
0.8
547581
9
125000

160000
-35000
-35000
125000

160000
-35000
-35000
125000

160000
-35000
-35000
125000

160000
-35000
-35000
125000

160000
-35000
-35000
125000

2500000.
00
-949100

-448398

-418110

-456566

100000
258398.
00
2
0.76946
75
198828.
87

100000
228110.0
0
3
0.674971
516
153967.7
526

100000
266566.
00
4
0.59208
03
157828.
5

477351
100000
287351.
00
5
0.49096
95
141080.
6

-4025421

100000
3259100.
00
1
0.877192
982
2858859.
649
4709750.
34
1000000
5709750.
34

terminal
value

2442483.
50
5
0.490969
544
1199185.
011

Optimistic case
Particulars

2014

2015

2016

2017

2018

NET SALES

9656178

10428672.

1126296

12164003.

13137123

47

terminal
value

Operating Profit (EBIT)

depreciation,depletion&am
ortization
Interest
pretax income(EBT)
net income
depreciation,depletion&am
ortization
Capex
change in NWC
after tax interest expense
FCFF

discount factor
pv of FCFF

Firm value
less:LTD
Equity value

3256178
75000
160000
3096178
1935111.
25
75000
1500000.
00
-949100
100000
338988.7
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Chapter
#6
SOCIO ECONOMIC
ASPECTS
Social and Ethical Impact:
1. This product will create awareness among the people of our country about tree plantation ,
the preservation of forest .
2. It will also help to the protection of wild animal. People will contribute towards making
the earth worth living for them.
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3. The product will generate oxygen in the house, which is vital for our lives.
4. it will help the youngster to learn about water-cycle.
5. It will helpful in feeling like close to the nature creating a green environment in the home.
6. It will help to improve the mental health of the people and wellbeing of the children.
Contribution to the economy:
1. Many people spend thousands in buying show pieces, art, painting from abroad to decorate
their houses. By offering this product at cheaper rate, a lot of foreign currency can be saved.
2. This product will contribute to our GDP and per capita income will rise.
3. This will create employment opportunity in the economy thus removing the curse of
unemployment from the society.
4. The idle and unused capital of the country can be utilized effectively. The savings can be
converted into investment and thus earning can be multiplied.

Chapter
#7
Conclusion &
Bibliography

CONCLUSION
Terrarium construction business is new in our country. Our company is a private limited
company. To introduce the product with the customers we have to conduct a promotional and
marketing program. For the first five years the promotional costs would be more. After that
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the costs would be less. The capital given by the owners and loan borrowed would be the
initial source of financing. After forecasting the sales and expenses and incorporating them in
the financial statements, this business seems to be financially and socially profitable. After
the functioning of first five years the company will be able to issue share. As the projected
financial and social profitability of this business is satisfactory, the potential investors should
invest in this business.

BIBLIOGRAPHY

Project Management, A Managerial Approach

-by Jack R.Meredith, Samuel J.Mantel, Jr.
Entrepreneurship
-by Bruce R. Barringer & R. Duane Ireland
Corporate Finance
-by J.F.Ross
www.google.com.

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