A Business Plan on Unique Furniture in Bd

Yes, We be Unique Prep ared by Desperate PREPARED FOR Mr. Md. Bodiruzzaman Guest Lecturer plane section of transmission delimitate Administration capital of Bangladesh City College, Dhaka PREPARED BY Group Name Desperate Batch XI , Section A Dhaka City College, Dhaka. DATE OF SUBMISSION November 29 2012 Group Information Group Name Desperate List of Group Members SerialNo. Full Name ID 01 Abu-Bakar-Siddique 13 02 Md. Shohel Perves 15 03 Md. Nasim Miah 35 04 Md. Rakibul Alam 57 Letter of Transmittal To Mr. Md. Bodiruzzaman Lecturer Department of Business Administration Dhaka City College, DhakaSubject To submit the A Comprehensive Business designing on Paper made article of piece of furniture Sir, We respectfully state that you look at assigned us to write the A Comprehensive Business Plan on Paper made furniture. To prepare this get over we take aim given our best effort. However, as we are student and still in learning attend there may have some lacking, limitations and errors in this report. We are very much grateful to you for giving us the opportunity to find out and earnings knowledge on this aspect of Paper made article of furniture in Bangladesh. Preparing this assignment is an experience for us which helps us in our practical life.We would like to convey you for providing us with such opportunity. Sincerely yours, (Md. Shohel Perves) On behalf of Group Desperate Student declaration We are declaring that the report on the topic of A Comprehensive Business Plan on Paper made furniture has precisely been prepared for the partial fulfillment of the course requirement of Entrepreneural Development. Executive Summary Unique piece of furniture is the biggest private furniture produce centre in Bangladesh. Unique piece of furniture understands piles need best and depart create and deliver admit mathematical product returns to improve peoples life and secure it easier.The ingredients of the Unique Furniture are basic exclusivelyy paper and barley. We are not only the producer of furniture still excessively the provider of better service to the furniture. Unique furniture is doing its best to fulfill the wishes of people. Unique furniture has 5 promoters who exclusivelyow for promote this business. These owners are highly qualified and experienced. Unique furniture is completely a private company and promoters are solvent copious. But this solvency is not complete for our business. So our 60% capital is outer and 40% capital is internal. Unique furniture follows strict rules always. We are liable to provide spirit products.To hold in a tradeing plan first of all(prenominal) comical furniture had to look on the flow rate commercialize situation, products, competitors and so forth Moreover extraordinary furniture has allocated enough money for advertising and public congress. fiscal Plan is one of the main portions of our business. These are mainly technical terms of sales, means of financing, profitabil ity projection etc. The initial cost of project is maximum as per the total cost of project concern which is Tk. 403,55,00,000. In the term of estimates of sales, its accessories price is like present exchange price. We have also some labor and rent costs.Unique furniture tar form of profit mark up is 30%. Unique furniture exit make profit Tk. 111,04,12,919 after 5 course of studys. We hope after this time our company exit be the best private furniture producing company in Bangladesh. In our coun feat there are many forms of furniture available in the market. But all are not true quality. On the other overturn some are very good quality in the market, but there price is high. So we launched new unique furniture which is made by paper. This is high quality and also reasonable price. We are sure if unique furniture comes in the market people will willingly take it and they will be benefited.Acknowledgement First of all we would like to thank the Almighty for giving us strength and the aptitude to complete this report. This report is far from complete perfection, but it could not be accomplished without the unity of our team members. We have collected a lot of development from internet and visited many companies. Anything humanly created in the instauration is not completely perfect and we are no exception. We apologize if there is any error in this report. Table of Content Chapters Subjects Page No. surgical incision 1 Prefatory Parts 11-12 1. 1 Introduction 11 1. 2 Objectives of the Report 11 1. 3 Methodology 11-12Part 2 Business rendering Segment 12-15 2. 1 normal Description of the venture 12 2. 2 Vision 12 2. 3 Mission 12 2. 4 Objectives of the company 13 2. 5 Board of managing directors 13 2. 5. 1 Status and Shareholding luck 14 2. 6 Management Team 14 2. 7 Organization Structure 15 Part 3 market Plan 16-26 3. 1 Current Scenario in Bangladesh 16 3. 2 Current market situation 16 3. 3 Marketing subdivision 17 3. 4 Sales depart ment 17 3. 5 Financial department 17 3. 6 HR department 18 3. 7 SWOT Analysis 18-20 3. 8 Competitor Analysis 21 3. STP Analysis 21 3. 9. 1 Market Segmentation 22 3. 9. 2 sign Market 22 3. 9. 3 Market Positioning 22 3. 10 Marketing Mix Analysis 23 3. 10. 1 Product Identification 23 3. 10. 2 Pricing 23 3. 10. 3 Promotion 23 3. 10. 4 place 23 3. 11 Brand awareness 24 3. 12 marketing and Advertising 24 3. 13 Research analytic thinking 24-26 3. 14 Corporate social responsibility 26 Part 4 Financial Analysis 27-35 4. 1 damage of Project 27 4. 2 Financial Plan and Loan fate 28 4. 3 Means of Financing 29 4. 4 functional Capital urgency and Its Financing 30 4. Cost of Project Calculation 31 4. 6 Income Statement (One Year) 32 4. 7 Projected Income Statement 33-34 4. 8 Cash Flow Statement 34 4. 9 Balance Sheet 35 Part 5 localisation principle Analysis 36 5. 1 Location Description 36 Part 6 Risk Analysis 37 6. 1 Risks & Remedies 37 6. 1. 1 Risks 37 6. 1. 2 Remedies 37 Part 7 close 38-40 7. 1 Conclusion 38 7. 2 Recommendation 39 7. 3 Bibliography 39 7. 3. 1 Reference of Books 39 7. 3. 2 Reference of Web-Sites 39 7. 3. 3 Product samples 40 Part 1 Prefatory Parts 1. 1 IntroductionBefore starting our journey we want to give you some entropy of the current situation of furniture sector in Bangladesh. If we see the last year statistics which is provided by Statistic Bureau of Bangladesh that, we can say one company called Otobi. Unique Furniture understands peoples need best and will create and deliver appropriate product services to improve peoples life and make it easier. The ingredients of the Unique Furniture are basically paper and barley. 1. 2 Objectives of the Study * To make the use of paper made furniture popular. * To provide brief information about our company and services. To analyze the sections of the project as example Marketing, Finance etc. * To start a pilot project from the village named Dendabor at Savar 1. 3 Methodology To organize this report we selected some primary and secondary data sources. To gather the prime information we had to prepare questionnaires and also had to visit the organizations to obtain information through oral interviews. This report has been prepared by preserving following steps * At first we represented the theoretical and historical perspective of the report. * We collected a lot of information from the external reports and internet. Then we take help from our teachers and the students of previous batches. * We took authorization to visit a company and lastly we have visited it. * We got different kind of information through oral interviews. * As a final point we delivered our recommendation Part 2 Business Description Segment 2. 1 General Description of the Venture (Product or Service) We are going for launch a production of equipments that can produce furniture from the paper. We will also open cornerstone service those will provide services to our custome rs. Customers satisfaction is our main objective. 2. 2 VisionWe are the new furniture solution provider in Bangladesh achieving our business mickle through growth in market stumble, increasing operation size, international distribution, total service and consistent disgraceing activities by the being most customers focused Innovative, cost effective efficient, environmentally responsible quality concerned company in the business. 2. 3 Mission To be the most consumer-focused, competitive, efficient, innovative, and environmentally responsible and quality concerned leading market oriented furniture manufacturer, sales and distributor of Bangladesh by the year 2014. . 4 Objectives of the Company * Generate and provide reasonably priced furniture to our customers. * Efficient utilization of Capital, Machineries, Material and Human Resources. * Continuous improvement of customer satisfaction and resource management. * Produce low cost furniture. 2. 5 Board of Directors Md. Rejaul Karim Vice- chairperson Md. Foysal Director Md. Abdul Aziz Chairman Md. Asikollah Supervisor Md. Yeasin Director Shahjada Yeasir Arafat Shuvo Supervisor Farzana Amin Director Md. Rafiqul Islam Supervisor 2. 5. 1 Status and Shareholding Percentage Name Status Shareholding PercentageMd. Abdul Aziz Chairman 25% Md. Rejaul Karim Vice-Chairman 15% Md. Foysal Director 15% Md. Yeasin Director 15% Farzana Amin Director 15% Shahjada Yeasir Arafat Supervisor 05% Md. Asikollah Supervisor 05% Md. Rafiqul Islam Supervisor 05% Total 100% 2. 6 Management Team Md. Abdul Aziz Chairman Md. Rejaul Karim Vice-Chairman Farzana Amin Director (HRM) Md. Yeasin Director (Marketing) Md. Foysal Director (Finance) 2. 7 Organization Structure Office Staffs (40 People) Share Holders Board of Directors Managing Director General handler Secretary Sales ManagerProduction Manager Purchase Manager Production associating Staffs (5 people) Sales associating Staffs (5 people) Purchase associating Staffs (5 people) S ales Executives (3 people) Purchase Executives (3 people) Salesman (36 people) Salesman (36 people) Super visors (5 people) Salesman (1000 people) Part 3 Marketing Plan 3. 1. Current Scenario in Bangladesh Bangladesh is a developing country. Most of the people wanted to decorate their house with furniture. But they cant properly decorate their house because of high priced furnitures which are already existed in Bangladesh.So we have a plan to produce furniture from document which will be lower priced than the other furnitures. like a shot people are ideateing Unique furniture, people are thinking about how to save money. Now has shape a primary need of our customer. So we want to create something new for our business plan and that can also help our society. Some companies like Otobi, Hatil, Pertax are providing the facilities of producing furniture from the wood. But the advantage cannot reach to the people of rural areas. Based on this positive information we are planning to ma ke a project of producing furniture from cover.We hope it will get a good market inside our country. Unique furniture will produce huge quantity of furniture that will meet the need of our country. 3. 2 Current market situation Present situation of furniture is high priced. Increasing price of furniture has become common word now. We have a plan to provide furniture all over the country but middle and fastness middle class are our target customers. Some companies are providing facility, but it is less than the demand. Present situation is perfect for this business. Paper made furniture is quite new idea, but we will introduce this to the rural and urban people.We think people will appreciate it and their hope is our inspiration. 3. 3 Marketing Department Marketing department reports to Sales and works closely with the business line heads, the product development team and Customer Service team globally. The role involves a high level of market sizing and data analysis projects with the objectives of identifying opportunities and risks and forming strategical recommendations to senior management and ideas to satisfy the economic. Here are also some objectives of our marketing department- * Focus on capacity optimization and assigning capacity to capableness customer to ensure the highest revenue. Credit monitor, notify customer and ensure superior services delivery to our customer. * To develop mutual business benefits. * Co-ordinate with other departments (i. e. Technical, complaint and Finance) to maintain smooth operation. 3. 4 Sales department Our sales department has some different objectives. The objectives of our sales department are given below * To succeed sales target. * To ensure overall success and customer satisfaction. * Develop new market segments and expand the existing market. 3. 5 Financial DepartmentFinance department function in our Unique Furniture are being the budgeting and forecasting investment decision making raising and allocati on fund. * To handle companies TAX value-added tax issues. * Finalize of the statement of income expenditure. 3. 6 HR Department The objectives of HR department are * Conduct recruitment selection process by using external /internal sourcing channels and deliver resources on time as per plan though following all stages. * Handle contract renewal management. * Keep modify all personal files of expatriates local employees. 3. 7 SWOT Analysis SWOT Analysis Strengths OpportunitiesWeaknesses Threats The following is a SWOT analysis as it applies to the Unique Furniture Strengths 1. Sell reasonable and quality products 2. commodious durability of the Furnitures 3. Fulfill with modern furnitures. Weaknesses 1. Lack age of advertisement 2. Lacking of relation with customers 3. New idea Opportunities 1. Use of all types of papers. 2. Creating more job opportunity 3. Rapid industrialization and urbanization 4. Increasing living standards of rural areas. 5. Be a number one brand in fur niture sector 6. Providing quality furniture all over the country. Threats 1. Will be highly competitive market 2. Change of environment 3.Achieving people confidence. MarketingParticulars Performance Importance MajorStrength MinorStrength Neutral MinorStrength MajorStrength High Mid Low 1. Companyreputation Yes v 2. Marketshare Yes v 3. Customersatisfaction Yes v 4. Productquality Yes v 5. Servicequality Yes v 6. Pricingeffectiveness Yes v 7. Promotioneffectiveness Yes v 8. Distributioneffectiveness Yes v 9. Sales forceeffectiveness Yes v 10. Innovationeffectiveness Yes v 11. Geographicalcoverage Yes v 2. Customerretention Yes v SWOT analysis tableThis SWOT analysis is apply for Unique furniture We have an opportunity to create good position and reputation in market. It is only possible when we can solve our all problems and give more precaution on our job. 3. 8 Competitor Analysis Furniture business in Ban gladesh is highly competitive. As a new furniture company we have also some competitor. They are 1. Otobi furniture 2. Partex furniture 3. Talukdar farniture 4. Hatil furniture and so on. First competitor for unique furniture is Otobi furniture. Which is leading furniture company in Bangladesh.To become a leading company in Bangladesh we have to compete with these existed furniture company. 3. 9 STP Analysis Marketing strategies The entire marketing process 3. 9. 1 Market Segmentation Three types of people live in our society upper class, middle class, and poor. So we also segment our product, price, and market into three groups. We think this marketing method will ideally work. Because different person have different status and parching power. Segmentation is the key to reach them. We segment our product for all kinds people in our society. Here is our target market level 1. Lower class 2.Lower middle class 3. Middle class 4. Upper class 3. 9. 2 Target Market Most of the people in our society are middle and upper middle class. So our first target is to catch the market of middle and upper middle class people. We will also provide our facilities to the rich people. After fulfilling their demand we will provide our business to the mills and factories. 3. 9. 3 Market Positioning Reputation of an institution depends on its quality. We give our first priority to the quality of product. Maintaining quality of product is the only way to achieve the faith of customers and their faith makes our position in the market. . 10 Marketing Mix Analysis 3. 10. 1 Product Identification Most of the equipment that can produce furniture from the papers will be made by us like sofa, chair, table, dining table, reading table, Corner set, book self etc. To produce furniture from papers we need some more products like paper, barley, color, frame, etc and we purchase this from other companies. 3. 10. 2 Pricing At first our target is to reach furniture to the middle and upper middle cl ass customers, so our price should be low. After reaching to the target we fix our price based on market demand. 3. 10. 3 PromotionWe have a plan to make furniture which will make by papers. But now we are focus on our present activities to promote the productivity of furniture from papers. After promoting this we will focus on other matters. 3. 10. 4 Place Place means not just the locations of producer facilities, but the locations of all points of sale at which customers may have access to the product or service. Thats why we are going to set up our organization at Savar. We will serve our services to the rural areas of our country. 3. 11 Brand awareness Most people believe in brand. Because brand gives them warranty and make them confident.We have some competitor in the market and they are brand companies like Otobi, pertex, talukdar, Hatil etc. But many people dont know about their new service of renewable energy. So if we provide more equipment in a short time and advertise mo re than our business will get a brand name. 3. 12 Selling and Advertising At first we will sell our products base on our customers demand. We dont recruit any dealer for our product. We will sell our product from our sales centre. First time advertising cost will be more and we have to make peoples interest on our product.We will use TV, Radio, newspapers and booklet for our advertising, because these are the most modern and common means of advertising. 3. 12 Slogan and Logo Our Slogan is Yes, we are Unique Our Logo is 3. 13 Research analysis Population The population of this research project has defined as follow 1. Elements All types of people who living within the Dhaka City. 2. ingest units All types of people ( Customer and Retailer) 3. Sampling Frame The distributors and retailers which are located in Uttara, Gazipur, Nilkhet those who are selling different types of furniture. They are the sampling frame of research project. Primary data collected from 1. Retailers 2. Custo mer of other furniture Company. 3. Different types of people * Sample size As the population of this research project is 100 (50 Customers and 50 Retailers). * Sampling procedure Among probabilistic sampling methods, simple random sampling procedure has been used in order to select sampling units from population. * Survey Process by dint of face-to-face interview the survey process will be done. * Data processing and Analysis Based on variables, researcher will analyze all the data basically throughout the subsequent style 1.Descriptive statistics to identify users categories. Instrumentation Through questionnaires and face to face interview. Activity To prepare this report we survey market many days. We have some question to the customer and retailers when we survey. The customer and retailers personal interview and question will be show in this chart 3. 14 Corporate Social Responsibility We live in a society. We do business for the development of our society. So all(prenominal) business has some social responsibility. Our business has also social responsibility. By using our furniture people can save money but they will get well services from us.We will also spend 5% profit of our business for social development. With this money we will start Tree grove Program all over the country and try to fulfill the required 25% forest of our country. It is not possible right now, but we will try our best to complete this work within next20 years. We will also give merit scholarship to the poor meritorious students that they can continue their study. Every year we will take new program to develop our society and that is our corporate social responsibility in marketing. Part 4 Financial Analysis 4. 1 Cost of Project Making a place is very important for any kinds of business work.We have selected our industrial area at Saver. We have bought a land by loan. Our business construction has been already finished. The total cost of the project will be estimated at TK 30, 00 , 00,000. The details costs of the project are as follow as- Particulars Taka rural area and site development 8,00,00,000 Building 2,00,00,000 Machinery 16,00,00,000 Technical expenses 10,00,000 Pre-operative expenses 20,00,000 Working capital 370,00,000 Total 30,00,00,000 4. 2 Financial Plan and Loan Requirement Particulars Owners Equity Bank Loan Total Land and site development 8,00,00,000 8,00,00,000Building 2,00,00,000 2,00,00,000 Machinery 16,00,00,000 16,00,00,000 Technical Expenses 10,00,000 10,00,000 Pre-Operative Expenses 20,00,000 20,00,000 Working Capital 3,70,00,000 3,70,00,000 Total 12,00,00,000 18,00,00,000 30,00,00,000 Percentage 40% 60% 100% 4. 3 Means of Financing Company/Our institution will take 40% as owners equity and other 60% will be taken as bank loan. The loan amount is 18, 00, 00,000 and 12, 00, 00,000 is the equity capital of Unique Furniture Ltd. 4. 4 Working Capital Requirement and Its Financing Particulars Amount (TK) NumberRaw materialsStoc ks of goods in processStocks of finished goodsOperating expensesTotal 20,50,0006,00,0004,00,00033,333 30,83,333 4. 5 Cost of Project Calculation Capital requirement Amount Amount meliorate AssetLandBuildingMachineryTotal Fixed AssetPre-operative expensesTechnical expensesWorking CapitalRaw materialsWork-in-processFactory overheadTotal Working CapitalTotal working requirement 8,00,00,0002,00,00,00016,00,00,000 26,00,00,00020,00,00010,00,0003,70,00,00030,00,00,000 2,00,00,0001,00,00,00070,00,000 4. 6 Income Statement (One Year) Particulars Amount (TK) Amount (TK)Sales (30% Mark Up) Less Cost of production Raw materials Work-in- process Factory overhead Gross ProfitLess Administrative expenses Selling expensesTotal administrative selling expenses dough Operating ProfitLess Financial expenses Depreciation Earning before TaxLess InterestLess Tax (25%) Profit after Tax 394,55,00,0002,45,00,0003,00,00,000 512,91,50,000400,00,00,000 60,50,00,00020,00,50,0008,11,00,0001,3 0,00,000 112,91,50,00080,50,50,000 32,41,00,0009,41,00,000 23,41,00,0002,70,00,000 20,71,00,0005,17,75,000 15,53,25,000 4. 7 Projected Income StatementParticulars Year-2013 Year-2014 Year-2015 Year-2016 Year-2017 Sales (30% Mark Up))Less Cost of productionGross ProfitLess Administrative expenses Selling expenses Net Operating ProfitLess Financial expenses DepreciationEarning Before TaxLess InterestLess Tax (25%)Profit After Tax 512,91,50,000400,00,00,000 615,49,60,000480,00,00,000 738,59,76,000576,00,00,000 886,31,71,20069120,00,000 1063,58,05,440829,44,00,000 112,91,50,00060,50,00,00020,00,50,000 135,49,80,00060,50,00,00020,00,50,000 162,59,76,00060,50,00,00020,00,50,000 195,11,71,20060,50,00,00020,00,50,000 234,14,05,44060,50,00,00020,00,50,000 32,41,00,0008,11,00,0001,30,00,000 54,99,30,0006,73,13,0001,30,00,000 82,09,26,0005,58,69,7901,30,00,000 114,61,21,2004,63,71,9261,30,00,000 153,63,55,4403,84,88,6991,30,00,000 23,00,00,0002,70,00,000 6,96,17,0002,29,95,107 69,61,86,4201,83,89,481 108,67,49,2741,30,93,010 148,48,66,74170,02,069 20,71,00,0005,17,75,000 44,66,21,89311,16,55,473 67,77,96,93916,94,49,235 107,36,56,26426,84,14,066 147,78,64,67236,94,66,168 15,53,25,000 33,49,66,420 50,83,47,704 80,52,42,198 110,83,98,504 4. 8 Cash Flow Statement Particulars Year-2013 Year-2014 Year-2015 Year-2016 Year-2017 Profit After Tax 15,53,25,000 33,49,66,420 50,83,47,704 80,52,42,198 110,83,98,504 fit Depreciation 1,30,00,000 1,30,00,000 1,30,00,000 1,30,00,000 1,30,00,000 Total Profit 16,83,25,000 34,79,66,420 52,13,47,704 81,82,42,198 112,13,98,504 4. 9 Balance Sheet Description Amount (Tk) Amount (Tk) Current assetsCashAccount receivablesInventoriesFixed assetsLandLess DepreciationBuildingLess DepreciationMachinery Less DepreciationTechnical ExpensesPower GridLess DepreciationPre operating costTotal AssetsLiabilitiesAccounts payableTaxLong term liabilitiesLong term bank loanLess 1st InstallmentOwners equityTotal Liabilit ies 12,00,00,0002,10,00,0005,00,00,000 15,10,00,0005,60,00,0001,90,00,0009,50,00,00010,00,0005,70,00,0002,00,0,00040,00,00,000 12,66,99,28415,33,00,71612,00,00,00040,00,00,000 8,00,00,0002,40,00,000 4,00,00,0002,10,00,000 10,00,00,00050,00,000 6,00,00,00030,00,000 7,49,24,2845,17,75,000 18,00,00,0002,66,99,284 Part 5 Location Analysis 5. 1 Location Description Location Address 112B, Nabinagar, Dendabor Bazar, Savar-Dhaka. Area 35100 sft. Price of the Land Tk. 8,00,00,000Owner of the Land Unique Furniture Ltd. Co. Part 6 Risk Analysis 6. 1 Risks & Remedies 6. 1. 1 Risks * Its a new business, people hardly acknowledge about it. * Lacking of relation with customers 6. 1. 2 Remedies * We have to make people concern about our service. * Home service employees should do their duties responsibly. Part 7 Conclusion 7. 1 Conclusion In our country there are many kinds of furniture available in the market. But all are not good quality. On the other hand some are very good qual ity in the market, but there price is high. So we launched new unique furniture which is made by paper. This is high quality and also reasonable price.We are sure if unique furniture comes in the market people will willingly take it and they will be benefited. 7. 2 Recommendation * It is naturally difficult to launch a new product, as new company unique furniture has some limitation. * We will try our best to find out our problem and we solve our problem very soon * Customers are always grateful to give their comments * We are always ready to solve customer problems 7. 3 Bibliography 7. 3. 1 Reference of Books * Entrepreneural Development By A A Khanka * Business morals & Applications for Higher Secondary 1st & 2nd Paper By Md. Khalekuzzaman 7. 3. 2 Reference of Web-Sites * www. google . com * www. ask. com * www. wikipedida. com 7. 3. 3 Product Samples