Business Plan

Course: MGT 368 # 9, Summer 2017

Submitted To

Mr. Rehanur Rahman

Submitted By

Nahida Akhter Naiema 1330255030

Tasdiqul Haque 1410081030
Rahbar Alam 1411238030
Faiyad Zahed Rahim 1410315030
Mustaqim Muhib Haque 1410696030

School of Business and Economics

North South University

Date of Submission: 17/08/2017

 Page
TABLE OF CONTENTS Number

1. Executive Summary 1

2. Introduction 2

3. Marketing 5

4. Operations 7

5. Financial Statements 11

6. Concluding Statements 13
EXECUTIVE SUMMARY

Our business is surrounding the paintball business. Paintball is an extremely popular sport all
around the world and we, team of 5 young aspiring entrepreneurs, are looking forward to
introduce this this thrilling game in Bangladesh. We have named our business Xtreme Paintball.
We will be able to grab the first mover advantages if we can start this business.

We will be requiring a capital of BDT 4,000,000 to start the business and the business will be a
partnership.

We have predicted steady sales with 50% increase every year. The expenses will increase
accordingly as well.

We hope to start the business from the year 2018.

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INTRODUCTION

Bangladesh is one of the fastest growing economies in the world. As our earning capacities are
increasing, we have more disposable income in our hands. But when it comes to entertainment
our options are extremely limited. We do not have many places to go to for our recreation. The
first thing that crosses our minds when we think about a place to spend our free time or have a
hangout session is to go to a restaurant or café or at max watch a new movie in the theater. We
hardly have other alternatives.

This is where we come in. We want to introduce a new leisure activity for our people. We want
to introduce Xtreme Paintball in Dhaka city. Being really popular all around the world, we
believe paintball is going to be a refreshing new activity for the Dhaka dwellers, especially for
the youngsters. Since this is completely new in the country, people would be inquisitive to try it
out. And we would love to grab this golden opportunity to serve this untapped market and fill
some of the blanks that exists in the entertainment industry of Bangladesh. Thus, we would be
able to get hold of many first mover advantages.

Paintball is basically a military simulation where a group of people shoot each other using guns
and paint bullets, thus the name paintball. There is nothing to be worried about because it is safe
and all safety measures would be taken before every game. It is indeed very fun to play
especially when a group of friends are playing against each other. In our everyday bustling city
life who would not love to escape and shoot away some fatigue and frustration?

Short-term strategy

Our short-term strategy would be to gain as much exposure as possible. Since, we are a
completely new business and most people do not have much of an idea about paintball we will
be mostly focusing on marketing and advertising and create awareness. We want to spread
knowledge about paintball as much as possible and make people interested to try it out. We just
want to attract and create a customer base. We would be implementing various promotional
tactics.

Mid-term strategy

Our mid-term strategy would be to go for customer retention. We would like ensure that there
are repeat customers as well as new customers trying out our services. Ensuring proper customer
service and satisfaction would be core to our strategies.

Long-term strategy

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Our long-term strategy would be to go for expansion. Based on our customer feedbacks we
would love to bring in new entertainment options and expand our services to other locations.

Form of Ownership

Xtreme Paintball is based on a partnership business under the partnership ACT 1932. It will be
located at the Purbachal Express Highway, Dhaka. It has five partners and all of them have equal
rights on the business owning 20% share each.

The partners of Xtreme Paintball are:

1. Nahida Akhter Naiema

2. Tasdiqul Haque
3. Faiyad Zahed Rahim
4. Mustaqim Muhib Haque

5. Rahbar Alam

Terms of agreement: The partners of Xtreme Paintball are highly committed to each other and
are determined to share equal rights in operating the business because they provide the same
amount of investment in this business. They are also equally liable to their creditors and debtors.
Thus, they will realize equal profits and loss through the year end operation of business. They all
are equally the owner of the company so there is no majority or minority of partnership. If any
disability is realized about the partnership business that will be treated with partnership ACT
1932.

The land on which the establishment will be operated belongs to one of the partners, namely
Tasdiqul Haque. He has agreed to rent the land for the business for BDT 150,000.00 per month.

Responsibilities of Partners:
Rahbar Alam will take care of Finance and Accounts.
Mustaqim Muhib Haque will look after Marketing and Advertising.
Faiyad Zahed Rahim and Nahida Akter Naiema will look after daily operations and
Procurement.
Tasdiqul Haque will handle all HR related matter.

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Management Team Background

Name Majoring In SPECIALTY

(EXPERIENCE &
KNOWLEDGE)
Faiyad Zahed Rahim Accounting & Finance Have knowledge and skills on
financial analysis, banks, and
investors.
Mustaqim Muhib Haque Accounting & Marketing Experience in coordination of
marketing policies, programs,
advertising and promotional
strategies.
Nahida Akhter Naiema Finance & Economics Have knowledge in statistics
that will then be analyzed to
generate forecasts of
economic trends.
Rahbar Alam Accounting & Finance Great knowledge in analyzing
financial information and
preparing financial reports to
determine or maintain record
of assets, liabilities, profit and
loss, tax liability, or other
financial activities within an
organization.
Tasdiqul Haque Human Resource Knowledge on employment
Management & Marketing law, compensation,
organizational planning,
recruitment, organization
development, employee
relations, safety, employee
engagement, and employee
development.

MARKETING

Target Market
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We will mainly be targeting the late teens and young adults. As in, O and A’ Level students,
people who are about to get into university, are already studying in university or fresh graduates.
People belonging to this age group are the people mostly seeking fun activities, and to some
extent, adventure. In a country like ours, where, recreation means mostly eating out and at times
watching a movie, Paintball will surely give youngsters some thrill won’t it? There is no age
limit for this game and grownups are also more than welcome to try out the sport, especially
those who need a break from their tedious work life. However, people below twelve are
recommended to stay away from playing this sport.

Industry Analysis

Paintball will be under the entertainment industry. This industry in one sense is huge, as in there
are too many people seeking entertainment. However options are very limited. For a populous
country like ours, we need more and more options for entertainment, but it is only limited to
eating out and cinemas. Thus, we hope to provide people with a new option of entertainment,
that they can avail with friends and family, if not on regular basis, but definitely during
weekends and vacations.

There are two to three gaming zones though in Dhaka, as well as a few theme parks located on
the outskirts of Dhaka. They will be our main competitors, but with top notch service and
noteworthy and unique experience, we hope to overcome the competition.

Marketing Mix

 Product/services

Our product is Xtreme Paintball. Being really popular all around the world, we believe paintball
is going to be a refreshing new activity for the Dhaka dwellers, especially for the youngsters.
Since this is completely new in the country, people would be inquisitive to try it out, and we are
targeting to serve this untapped market and fill some of the blanks that exists in the entertainment
industry of Bangladesh. Thus, we would be able to get hold of many first mover advantages.

Paintball is basically a military simulation where a group of people shoot each other using guns
and paint bullets, thus the name paintball. There is nothing to be worried about because it is safe
and all safety measures would be taken before every game. It is indeed very fun to play
especially when a group of friends are playing against each other.

 Price

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Pricing starts from BDT 1200 per person which will include the paintball gun, 100 paintball
bullets and protective clothing. Customers can purchase more paintballs if they want by paying
BDT 300 for 100 paintballs. We will also rent out the whole arena for corporate or private
tournaments based.

 Promotion

We are expecting more crowds on weekends and public holidays. Thus, we have plans of giving
offers for weekdays, such as discounts on prices. We will also have bundle offers and group
discounts, paintball merchandise, etc. to attract more customers.

As part of our promotional activities, we have plans to visit different universities to increase
awareness among the target market. We will also set up booths in public places such as markets
to let more people know about the sport and that we have started a new venture. We would also
arrange mini tournaments in our arena and offer prizes to gain more popularity.

 Place / Location

We are planning to set up our gaming zone in Purbachol area which is very close to the Express
Highway. The communication to the location is also very good. This part of the city is growing
fast and it is considered that Purbachol will be the go to place for most people in the coming
years, whether it is for housing, shopping or even entertainment. Thus, we are planning to set up
in Purbachol.

Advertisement

These days, most of the hype, be it about a movie, a new restaurant in town or a new product, is
created in social media such as Facebook, Instagram etc. Thus, as part of our advertisement, first
thing we plan to do is open up a page of our company on Facebook and Instagram. We will post
photos and videos of the Paintball activities on these pages. We will also make commercials that
we will post in social media platforms and increase our awareness through post boosting.

Other than that, young generation these days listen to FM Radio a lot, so we also plan to run
Radio commercials as well.

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FINANCIAL MANAGEMENT

Identification of Risks:

Paintball being the first mover in Bangladesh will be able to gain some advantages like: setting
industry standards, can gain expertise through participation, will face less competitive rivalry,
can be better positioned to satisfy customers, but will face several risks as well. Some of the risks
Paintball can face in Bangladesh are:

 Financial Risk: Starting capital of the business will come from the personal savings of the
partners. The main cost in Paintball goes in its setup cost. Operational cost is lower than
the earning.
 Technological Risk: In this era, changes in technology is always taking at a rapid pace. It
is difficult to predict the future changes in the technology, but it is important to be
updated in order to survive in the market (Zwilling, 2012).
 Political and Legal Risk: This includes the risk in changing of the political condition and
changes in the law, rules and regulation. Due to the uncertain political condition of our
country this risk tends to be very high (Adams, 2013).
 Systematic and Unsystematic Risk: Systematic risk refers to the changes in the entire
market or economy that no one can change. Unsystematic risk is the strategic,
management and investment decisions a business owner faces every day (Contributor,
2016). This risk can be managed by the decisions the entrepreneurs take.
 Customer Uncertainty: Being the first mover in this market it is very difficult to estimate
the number of customers. Even through our intensive survey the result will vary with an
accuracy of at least 20-30%. This will reduce as soon as the business starts, gains
popularity, and the R&D department gain experience over time.

Even though being a first mover increases the uncertainty, but this is an untapped market with
vast potential which can grow very fast with proper control of the risks it may face. These risks
change with each phase that businesses go through, risk of a business is correlated to its return;
taking higher risk leads to higher return, but being an entrepreneur one must have the capability

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of taking risk. Therefore, through proper supervision and knowledge about the business the risks
can be controlled.

Startup Cost
PAINTBALL EQUIPMENT COSTS Units Rate Total price
Paintball guns set 40 12,135 485,400
Paintballs (2000 balls per box) 20 3,000 60,000
Employee Number Salary Total
Paintball Head gear and goggles set 40 3,200
Equipment lessors and rotating counter people
4
128,000
10,000 40,000
Coveralls for the players Safety Inspectors40
and referees 1,000 3 40,000
15,000 45,000
Gloves Trainers 40 800 2 32,000
12,000 24,000
Elbow and knee pads set Cleaners 40 1,000 3 40,000
6,000 18,000
Total Total 12 43,000
785,400 127,000

LEGAL COSTS Units Rate Total price

Trade License and TIN Certificate 35,000
Other Legal Fees 40,000
Total 75,000

INDOOR ARENA SETUP COSTS Units Rate Total price

Building structure 1,500,000
Interior Costs 800,000
Air Conditioner 4 50,000 200,000
Computer/Laptop 1 25,000 25,000
Sound System 1 100,000 100,000
Backup Generator 1 150,000 150,000
Food corner setup 50,000
Total 2,825,000

CASH 314,600
TOTAL INITIAL INVESTMENT 4,000,000

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According to our estimates above, we would be requiring an initial investment of BDT
4,000,000.00 which will be equally shared by the five partners.

The yearly salary is around BDT 127,000 * 12 = BDT 1,524,000 plus 2 Eid bonuses by dividing
one month salary into two. Therefore, total is BDT 1,651,000.

Sales report Unit price Unit sales Monthly Sales

Game 1,200 450 540,000
Paintballs 300 400 120,000
Total 660,000

Cost of sales Unit price Unit sales Monthly Sales

Paintballs 150 400 60,000

Sales is generated for playing each game costing BDT 1200. For extra paintballs, customers have
to pay BDT 300 for 100 paintballs and the 100 paintballs have a cost of sales of BDT 150.

Accordingly, the Pro Forma Income Statement is made. We assumed that each year our sales
will increase by 50% and we increased the expenses by the same amount as well. From our
assumptions and analysis, we can see that the business will be making profit in all three years.

Thus, we will be able to get back our initial investment before the three year period.

The Return on Investment for the year 2020 = (6,620,507 – 4,000,000) / 4,000,000

= 0.655 or 65.5%

We have also provided a Start-up Balance Sheet for the year ending 2017.

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 PRO FORMA INCOME STATEMENT
2018 2019 2020
REVENUE
Total Sales 7,490,000 11,235,000 16,852,500
Cost of Sales 720,000 1,080,000 1,620,000
Gross Profit 6,770,000 10,155,000 15,232,500
EXPENSES
Salaries 1,651,000 1,981,200 2,377,440
Marketing and Advertising 1,000,000 1,500,000 2,250,000
Rent 1,800,000 1,800,000 1,800,000
Utilities 275,000 412,500 618,750
Depreciation Expense (5%) 141,250 134,188 127,478
Miscellaneous 120,000 180,000 270,000
TOTAL EXPENSES 4,877,540 6,007,888 7,443,668
Profit before taxes 1,892,460 4,147,113 7,788,832
Tax (15%) 15% 15% 15%
Tax Amount 283,869 622,067 1,168,325
NET PROFIT 1,608,591 3,525,046 6,620,507

BALANCE SHEET (FOR START-UP)

2017
Assets
Current Assets
Cash 314,600
Preliminary Expense 75,000

Total Current Assets 389,600

Fixed Assets
Equipments 785,400
Indoor Arcade 2,825,000
Total Fixed Assets 3,610,400

Total Assets 4,000,000

Total Liabilities 0

Equity
Paid in Capital (5*800,000) 4,000,000
Retained Earnings 0
Total Equity 4,000,000

Total Liabilities and Equity 4,000,000

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OPERATIONS

Well thought-out plan is vital for the operations of our paintball business. Our services has to be
top notch in order to establish the trend of paintball in Bangladesh and create the hype among
our target group.

Opening Hours: 10 am to 6 pm

Daily business management

Daily management of the business will be a challenging task as attentions has to be given to each
and every minor details. Firstly each and every move by the players has to be monitored as there
are safety issues involved. We plan to install CCTV cameras in each and every corner of our
premises. We have to ensure the safety inspectors and referees are well trained and always on the
watch. Our Management must ensure that trainers have given proper briefing to the players.
Moreover since this game is ought to get messy with colors gelatin etc., we have to ensure the
playing area are properly cleaned each and every day to make it fit and safe.

Hiring and Personnel procedures

Again since we are providing service, hiring of personnel is very tricky. The staffs have to be
extrovert and outspoken as they will be dealing with the customers. Specially, the trainers have
to be friendly and should be trained to perfection in order to demonstrate the rules and
regulations of the game to the clients. Therefore, we would like to hire mostly through personal
references from friends and family in order to ensure the quality of our workers.

We plan to train and employ around 10 to 12 permanent workers and as well as few part time
workers for tackling more clients during festive seasons. The personnel breakdown:

Employee Number Salary Total

Equipment lessors and rotating counter people 4 10,000 40,000
Safety Inspectors and referees 3 15,000 45,000
Trainers 2 12,000 24,000
Cleaners 3 6,000 18,000
Total 12 43,000 127,000

Equipment

Equipment are the major variable costs for our business as the game revolves around using the
equipment- different types of paintball guns, gadgets and gears, masks or goggles, protective
armors, etc.

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List of some of the different paintball equipments:

Equipments and accessories Units Rate Total price

Paintball guns set 40 12,135 485,400
Paintballs (2000 balls per box) 20 3,000 60,000
Paintball Head gear and goggles set 40 3,200 128,000
Coveralls for the players 40 1,000 40,000
Gloves 40 800 32,000
Elbow and knee pads set 40 1,000 40,000
Total 220 21,135 785,400

These equipment and supplies will have to be imported since we will be the very first entertainer
in this field.

Land Rental Agreement

The land on which the establishment will be operated belongs to one of the partners, namely
Tasdiqul Haque. He has agreed to rent the land for the business for BDT 150,000.00 per month.

Insurance and Legal Matters

Firstly all players should be made to sign a waiver form for release of liability. This is very
important since if anyone get hurt while paying they may ask for compensation and this waiver
form will be to the rescue. However our business will have a legal responsibility to make sure
that it provide a safe environment and equipment for player one way or the other. So if a player
is injured it can cost us a fortune, therefore a good paintball insurance will be necessary in order
to protect our company against liability risks.

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CONCLUDING STATEMENTS

We are really looking forward to opening Xtreme Paintball as we want to revolutionize the
entertainment scene in Bangladesh. We believe we have the capability and willpower to become
successful with our venture. We hope to stand out from the rest. We hope to fulfil our goals and
objectives of providing the best service and retaining our customers. And by doing so we want to
grow.

Finally, no business can sustain without growing. Thus, based on customer demand we want to
expand our business to locations outside Dhaka and open Xtreme Paintball outlets. Also, we
would like to arrange paintball tournaments in the future to make the game more popular and
turn it into a national event.
So are you ready to shoot some colors?

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