Roam with the flavor of Bangladesh

Roam with the flavor of Bangladesh

 Business plan for SHOPPING BAGS

Course Name# Entrepreneurship Development

Course no# BA-305

Submitted to#
Mr. Md. Nur Alam
Assistant Professor

Submitted by#
Mehdad Mamur Mannan, ID# 040301
Tareq Islam Shuvo, ID# 040303
Farjana Ehsan, ID# 040319
Shahana Ferdousi, ID# 040334

Business Administration Discipline

Khulna University November 06, 2006.

Roam with the flavor of Bangladesh

 3 Contents
1. Executive Summary 5-6
2. Description of the Business 7-10
2.1. Business Idea
2.2. Goals & Objectives
2.3. Market Opportunities
2.4. Mission
2.5. Description of the Product
Page Numbers 2.6. Business Objectives

1 2 3 4 5 6 7 8 9 10 11 3. Evaluation of Market Opportunity 11-13

12 13 14 15 16 17 18 19 3.1. Market Size & Trends
3.2. Customers
20 21 22 23 24 25 26 27 3.3. Competition
28 29 30 31 32 33 34 35 3.4. Differentiation

36 37 4. Marketing Plan 14-18

4.1. Marketing Objectives
4.2. Marketing Strategy

5. Description of Development and Production 19-24

5.1. Development of Product
5.2. Production Process
5.3. Human Resource Planning
5.4. Future Product Development

Roam with the flavor of Bangladesh

 4 Contents
6. Management & Operations Plan 25-28
6.1. Management Description
6.2. Support Services
6.3. Ownership

7. Financial Plan 29-34

7.1. Funding & Breakeven Point
7.2. Pro forma statement of activities
Page Numbers 7.3. Analysis of Major Expenditures & Incomes
1 2 3 4 5 6 7 8 9 10 11
8. Risk Assessment & Contingency Plan 35
12 13 14 15 16 17 18 19
20 21 22 23 24 25 26 27 9. Supporting Documents A
28 29 30 31 32 33 34 35
36 37

Roam with the flavor of Bangladesh

 Executive Summary

An idea changes lives- people often say so and many times we have seen the proof of that.
However, idea needs to be feasible so that it can be turned in to innovation. Now
SpiritBangladesh is here top turn an idea in to a wonderful innovation. Basically
SpiritBangladesh is a shopping bag manufacturer that wants to fetch a revolution in the
shopping bag industry of Bangladesh.

Business- SpiritBangladesh
SpiritBangladesh wants to do business with the unbeatable spirit of Bangladesh, therefore
it wants to attach the spirit of the country with its products that is shopping bags. Unlike
other conventional shopping bag SpiritBangladesh will bring the pictures of Bangladesh’s
nature, places, personalities, culture, heritage, history etc. on its shopping bags. These will
drive the people emotionally towards the spirit of Bangladesh. Apart from that
SpiritBangladesh has got a noble mission to contribute its 7% of profit for the cancer
patients of Bangladesh.

Market-SpiritBangladesh
Now all people are feeling irritate of having excess and traditional shopping bags. Even if
all the stores are already taking shopping bag from their suppliers but yet there is a huge
potential left for new and innovative idea to grab the market. The marketing object of
SpiritBangladesh will be to attract the customers and the users as well. The idea and
distinctive features are the strength of SpiritBangladesh, at the same time the weakness is
motivating the customers with the new idea. Yet there is a huge potential left for
SpiritBangladesh.

Roam with the flavor of Bangladesh

6 Executive Summary
Production- SpiritBangladesh
The production plant of SpiritBangladesh will be in the capital city Dhaka because all the
raw materials required for that can be available there. SpiritBangladesh’s all the bags will
be very much environment friendly. There will be standard of quality assurance.

Management & Human Resource- SpiritBangladesh

SpiritBangladesh believes in creating skilled workforce who will be derived by
innovation. There will be regular training program for all the personnel to ensure efficiency
and up gradation. SpiritBangladesh will be a learning organization for the employees. The
expertise of the management is beyond question.

Operation & Finance- SpiritBangladesh

SpiritBangladesh’s will be strictly monitored by the top management. The top
management will be the owner of the venture and they will share the profit. It is expected
that the company will reach the breakeven with in 2009. The company will be able to
decrease its costs after 2 years of operation. And finally the SpiritBangladesh has already
been decided to provide 7% of its profit fie the cancer patients.

Roam with the flavor of Bangladesh

 Description of the Business
2.1. Business Idea

SpiritBangladesh will be a shopping bag manufacturing company that will

produce shopping bags for the consumers of different renowned shops, outlets and
shopping malls/super stores. However this company will not produce the conventional
paper bags or shopping bags. Basically image craft will produce bags of 3types of
materials. They are-
*) Paper- All Environmental friendly papers will be used for making these
bags. For making the handles, high quality threads will be used.
*) Cloth- Pure Bangladeshi cotton fabric will be used for these cloth bags.
It is not only a shopping *) Jute- Jute is our lost glory. To reign this, SpiritBangladesh will produce
producing firm, rather it’s aristocratic jute bags. These will be a bit expensive and internationally presentable.
a venture to explore,
The uniqueness that SpiritBangladesh will bring in its product is demonstrating the
innovation, serve the
Bangladeshi spirit. Basically on this bags, like the other conventional shopping bags, the
country. name logo, address or features of a particular shop/ outlet / super store will be printed.
Besides these bags will come up with the printed pictures our Bangladesh’s nature, culture,
heritage or even the famous personalities. That means these bags will portray the image of
Bangladesh. Through these bags “SpiritBangladesh” will try to encourage people to
explore Bangladesh. Even on these bags there will be lives of Bangladesh’s famous
patriotic songs or poems, that will create a strong emotional impact among people. But
perhaps the most amazing feature of this company will be its social awareness through its
business. The company has a vision to aid the cancer patients of this country. For this the
company will contribute 7% money for its every unit of sale to the cancer victim of the
country. Therefore , Spirit Bangladesh is going start a kind of business that has never seen
yet in the history of Bangladesh.

Roam with the flavor of Bangladesh

8 Description of the Business

2.2. Goals and objectives

SpiritBangladesh is going to established with some goals and objectives.

Primarily we may say that these goals and objectives are-
*) Producing carriage solution to the consumers.
*) Enhancing the use of environment friendly materials, that can meet demands in
reasonable price yet does not harm the environment.
*) Focusing the beauty and glory of Bangladesh among people so that they become
even more inclined to explore Bangladesh.
*) Fostering the patriotic emotion among the people.
*) Finally to contribute the society by standing beside the cancer victims of the nation.

2.3. Marketing Opportunities

Every now and then the number of consumers of different shops and super
stores are increasing. So the demand for the shopping bags is ever going high.
SpiritBangladesh is primarily targeting the superstores of Bangladesh and other
renowned departmental stores of Dhaka and other major cities. But it has a vision to
spread it’s a result the company has got a huge market opportunity. Every day many
new superstores and shopping malls are getting established in Bangladesh. This is
also indicating a very prospective market for Spirit Bangladesh.

Roam with the flavor of Bangladesh

 9 Description of the Business
Thus Spirit Bangladesh wants
to do a simple business in a
distinctive manner for the
welfare of people and nation in
the class of its own.
Roam with the flavor of Bangladesh
2.4. Mission
Spirit Bangladesh is a shopping bag manufacturer that not only produces its
product but also fosters the spirit of Bangladesh among its consumers. By carrying
commodities in the bags of “Spirit Bangladesh”, people are also contributing for the cancer
victims of the nation and exhibiting their consciousness to keep their environment healthy.
Thus Spirit Bangladesh wants to do a simple business in a distinctive manner for the
welfare of people and nation in the class of its own.
2.5. Description of the product
Product Name- Shopping Bag.
No. Of Types- 3
Material- Paper, Cloth and Jute (100% environment friendly)
Size- 6 Different sizes.
Special Feature- Name, logo, address and feature of a particular shop/outlet/superstore.
Further the bags will have printed picture on Bangladesh’s nature, heritage, culture and
personalities. On the pictures, lives from our famous patriotic songs or poems will be
printed.
10 Description of the Business

2.6. Business Objectives

The following is a list of the significant business objectives of “Spirit Bangladesh”.

=Promote and popularize the spirit and affection for the Bangladesh among the people.
=Grab as much market share as possible since we are completely innovative in this sector.
=Maximizing profit so that we can contribute more to the cancer patients of the country.
=Delivering optimum service to the consumer so that they not only fall for our idea but also
become loyal to our products.

Roam with the flavor of Bangladesh

 Evaluation of Market Opportunity

3.1. Market size and Trends

Spirit Bangladesh will be very selective in choosing its markets. Only the
renowned and trusted shops/outlets/superstores and their consumers will be the
market of this company. So at initial stage the company is starting with some super
stores and some other renowned shops.
These days people are quite conscious about the environment. So they want
to use environment friendly shopping bags. Moreover, with the growth of population
the number of consumers of different shops/outlets/superstores are increasing. So the
demand for shopping bag has got a new dimension. Finally all the renowned shops
want to deliver their product in a nice , useful and standard shopping bag that also
bears the image of the particular shop. So the current trend looks very very promising.

3.2. Customers
-Customer Segmentation
Since we want to sell our product to only those shops/outlet/superstores
which have a minimum reputation. We are taking some super stores and some other
renowned shops as our potential customers. However we do have a market
segmentation according to the volume of purchase by the customers. That
segmentation as follows-
Master Consumer: Customers that purchase 15,000 unit per month.
Elite Customer: Customers who purchase more than 7000 but less than 12,000
unit per month.
General Customer: Customers who purchase more than 4,500 but less than
6,000 units are of this group.

Roam with the flavor of Bangladesh

12 Evaluation of Market Opportunity
3.2. Customers

-Customer’s Motivation

The customers will be motivated by our-

• Attractive price
• Unbeatable Idea
• Supreme quality
• Excellent Service
• Motto to contribute to the society

3.3. Competition
Though there is no other company in the market that is doing business with
our idea. But yet we are not free from the competitors threat. We have-

Direct Competition: We have direct competition with all the shopping bag
manufacturers and printing presses that are doing business with the
current shopping bag manufacturers within Khulna city.
Indirect Competition: We have indirect competition with all the
manufacturers of small paper packets and net bags. Still some people
are illegally producing banned poly-bags. These people are also
competing with us indirectly.
Potential Competitors: All the potential companies that might come up with
new ideas and materials in packaging industry are Spirit Bangladesh’s
potential competitors.

Roam with the flavor of Bangladesh

13 Evaluation of Market Opportunity
3.4. Differentiations

-Strength
• Unbeatable idea
• Attractive price
Opportunity & Threats • 100% environment friendly high quality material.
• Flexible offerings
• Efficient Workforce
• Smooth distribution network
• Strong customer service

-Weakness
Strength • Completely new idea
• Availability of raw material
Weakness
Innovation is our strength -Opportunity
• Opportunity to contribute to the society
• Ever increasing number of consumers.
• Absence of new idea.
• Wide opportunity to expand.

-Threats
• Misrepresentation of customer psychology
• Misinterpretation from the part of customer
• Emergence of any new company with any other idea.
• Withdrawal of restrictions on poly bags.

Roam with the flavor of Bangladesh

 Marketing Plan
4.1. Marketing Objectives

-Marketing Objectives are

• Ensuring excellent quality all through

• Assessing customers demand and meeting them adequately.
• Marketing customers satisfied with the asking price.
• Ensuring wide availability of product.
• Building “Spirit Bangladesh” a strong brand.

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 15 Marketing Plan
4.2. Marketing Strategy

-Product

Product Name- Shopping Bag.

No. Of Types- 3
Material- Paper, Cloth and Jute (100% environment friendly)
Size- 6 Different sizes.
Special Feature- Name, logo, address and feature of a particular shop/outlet/superstore.
Further the bags will have printed picture on Bangladesh’s nature, heritage, culture
and personalities. On the pictures, lives from our famous patriotic songs or poems will
be printed.

Its environmental friendly

Roam with the flavor of Bangladesh

 16 Marketing Plan
The firm will set an initial low
price in order to penetrate the
market quickly and deeply- to
attract a large number of buyers
quickly and win a large market
share.
Roam with the flavor of Bangladesh
4.2. Marketing Strategy
-Price
Price would be a crucial issue for our products. We Know for new product
pricing we can use two pricing strategies- Market Skimming and Market Penetration.
Here, SpiritBangladesh will adopt Market Penetration Strategy. That means the
firm will set an initial low price in order to penetrate the market quickly and deeply-
to attract a large number of buyers quickly and win a large market share. As a result,
the high sales volume results in falling costs, allowing the company to cut its price
further if needed.
Since SpiritBangladesh makes shopping bags of 3 different materials, the price of
each type will vary. The price will mainly depends up on the cost and availability of
the raw materials, competitor’s price and of course up on our cost of goods sold and
there by our targeted profit margin. Basing up on all these variables for each type,
SpiritBangladesh has decided to fix its initial price mix in the following way-
Paper Bags- 5.00 taka per unit (average price, because price will vary in terms of
size).
Cloth Bags- 7.00 taka per unit (average price, because price will vary in terms of
size).
Jute Bags- 10.00 taka per unit (average price, because price will vary in terms of
size).
However price may change depending on different variables.
17 Marketing Plan

4.2. Marketing Strategy

-Promotion

SpiritBangladesh always considers its product as a creative piece.

Therefore the company believes in promotional activities that not only attract its
customer by their rational value but also by their emotional drive. But in this case we
have financial limitations. So we think to popularize our idea and thereby our product
we need effective but cost efficient promotional method like Personal Selling. This
method will major emphasize. Besides we will establish some billboards in front of
the renowned super stores and shopping malls all around the country. Without that we
will also have billboards in all the major tourist cities (i.e. Cox’s Bazar, Sylhet,
Chittagong Hill Tracts and so on) of Bangladesh as our product does bear some
tourism value. Some specimen of our promotion has been provided in the appendices.
esh
Ban pirit
glad
S

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 18 Marketing Plan

4.2. Marketing Strategy

-Place

We want to do our activities being very close to our customer. That is why
SpiritBangladesh wants to maintain a very strong and smooth distribution network all
through. Our distribution will be conducted by the Company Sales Force. The nature
of distribution is basically Selective Distribution. The company itself will manage all
its logistic support. In the following flow chart we might have an insight of the
SpiritBangladesh’s distribution channel.

Suppliers Region
The nature of distribution is Stores

basically Selective Suppliers Labor force Spirit

Bangladesh
Region Stores
Distribution. Suppliers Region Stores

Emergency

Roam with the flavor of Bangladesh

 Development and Production
5.1. Development of Product
-Product Development

SpiritBangladesh is a company which produces packet or shopping bags for the

departmental and chain stores. Focusing on the customers need and buying pattern
SpiritBangladesh has developed its product. Its products are-

-Shopping bag made of papers: Paper will be used as raw material for this
type of bags. There will be difference of size of these bags. All these size will be
determined by the current product available in the market and as per the requirement of the
owners of the shopping centers.

-Shopping bag made of Cloth: Cloth will be used as raw material for this
type of bags. There will be difference of size of these bags. All these size will be
determined by the current product available in the market and as per the requirement of the
owners of the shopping centers.

SpiritBangladesh -Shopping bag made of Jute: This is another special type of bags. This bags
will be made to promote the jute of our country and as well as to remind the golden days of
our jute. This bag will be bit expensive but also bit aristocratic. This bag can be
internationally presentable.

Roam with the flavor of Bangladesh

20 Development and Production

5.1. Development of Product

-Milestones

The milestone of our product will be measured in two terms. First of all we want to
create a strong customer and users base through emotional representation. Then we will
look for increasing the usage rate of our bags. Our target is to attract our customers as well
as users in terms of quality, design, emotional attachments, pricing and comforts.

-Patents

SpiritBangladesh will hold the patent of the new and innovative institutionalization
of shopping bag manufacturing. SpiritBangladesh will hold the authority to produce,
develop and modify the product. In this competitive age it is the interactive right to have
the authority of a unique business idea where the image of the country uplifted and
explored. It is not less than representing the country with the business venture.

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21 Development and Production
5.2. Production Process
-Production Method (i.e., Internal or outsourcing)

It is a great consideration how SpiritBangladesh will produce this large

number of shopping bags. It is a matter of manifold considerations including supplies of
raw materials, designing, equipments, materials etc. to operate the production unit locally.
B But as SpiritBangladesh want to explore its potential in the whole country, initially it will
a establish its production unit in Dhaka but gradually it will establish its production units
focusing on its markets and customers.
Sn SpiritBangladesh will not produce all the things by itself. Raw materials like papers,
pg cloths, jute will not be internally completed. But other things like printing materials,
i l assembling the whole bag, distributing will be done by SpiritBangladesh.
r a SpiritBangladesh will buy the printing machine although these are expensive but just to
i d hold the quality of picture. SpiritBangladesh will also appoint fulltime designer in order to
t e ensure the changing trends of design so that users never get irritated.
s
h -Milestones

The ultimate goal of SpiritBangladesh in production process is to develop a

very much cost efficient production method of shopping bag manufacturing. The method
will be developed in such a way so that easy diversification is possible. The production
method will also be the matter of patent.

Roam with the flavor of Bangladesh

22 Development and Production
5.2. Production Process
-Suppliers

In case of selecting suppliers, SpiritBangladesh will focus on three considerations-

Quality: Suppliers should ensure the required quality of raw materials.
Another consideration is there should not be any substances that can harm the environment
in the raw material. That is all the raw materials should environment friendly. As the raw
materials will not be changed in the main production, it will just modify so
SpiritBangladesh will be very cautious in the quality of the raw materials.
Price: Price is a vital consideration in case of raw material supplies. No
business can be economically feasible without having cost effective raw materials. So the
supplier should ensure the least price for the best raw materials.
Availability: A supplier with best quality and least price will not be selected
unless the supply of their raw materials is continuous. So availability is a vital factor that
has to be by a supplier. SpiritBangladesh will consider this thing in case of selecting raw
materials.

-Quality Assurance or Continuous Improvement

Quality, Price & There will be provision for quality assurance through practicing some of the quality
assurance tools. The business will be driven by the thirst of continuous improvement. It will
Availability are our also be driven by the beauty of innovation, exploration, exposition and composition. These
consideration in selecting all things are required to ensure the continuous improvement.
our suppliers.

Roam with the flavor of Bangladesh

23 Development and Production
5.3. Human Resource Planning

-Labor Requirements

SpiritBangladesh need adequate and skilled labor to fulfill its mission. It

will not continue operation on the basis of day to day demand. Rather considering the fact
of unpredictability, SpiritBangladesh will focus on producing adequate shopping bags. The
labor requirement will be determined by two factors, the quality and another one is quantity
of the labor. Below there is a projection towards labor requirements for preparing the final
bags.

Quantity
Average labor capacity per hour= 100 bags (5% error acceptable)
Average working hour a day= 7hours
Average production capacity for a labor per day= 100*7=700 bags.
Total number of labor will be determined by total number of demand.
We will train up our
Skill requirement
employees regularly, Educational Requirement: At least 8 years completed in school.
so that continuous Skill: Should have basic knowledge in bag preparing. Must have the capacity to work using
both hands. The labors should also have some aesthetic sense.
improvement can be Physic: The workers should be physically fit to do the work continuously.
ensured.
-Training

There will be provision to train the labors. The basic of their training is to
accelerate accuracy in assembling bags. Their will be some training to grow the geometrical
sense, speed etc.

Roam with the flavor of Bangladesh

 24 Development and Production
5.4. Future Product Development

SpiritBangladesh has a plan to grab the export oriented market. The

packaging of export goods will be supplied by SpiritBangladesh. These products include
The future version of cartons, containers and other export packaging. These products will represent the culture,
history, traditions, natural beauty of our country. Some other businesses can be enhanced
our product can be the through this packaging. Image of the country is an indicator of the future economic growth
global door to of the country. So, our future plan regarding our forecasted product is to be the
representative of our country as well as economically beneficial one.
exchange cultures, As our product will be protected by the patent, so we can share our idea with the some other
history and tradition. country to be economically benefited. The future version of our product can be the global
door to exchange cultures, history and tradition.
t
en
m
lop
ve
De

Roam with the flavor of Bangladesh

 Management & Operations Plan
The efficient team of
SpiritBangladesh
knows to share, lead,
guide and win.
Roam with the flavor of Bangladesh
6.1. Management Description
The executive management team for the SpiritBangladesh is comprised of
four members, described below. This team is responsible for strategic development and
daily operations of the Marketplace. This team holds formal weekly meetings and is in
regular communication to make all critical decisions relating to the SpiritBangladesh.
-Expertise
• Executive Management Team.
President. Mr. Mehdad Mamur Mannan, co-founder and President of SpiritBangladesh,
serves as President of the SpiritBangladesh and as its primary champion. Mehdad has
completed his graduation in the country’s leading business school Business Administration
discipline of Khulna University. He has expertise in Marketing and global business. In
addition, Mehdad has successfully designed and launched several new ventures, including
the event management unit of SpiritBangladesh and the marketing strategies for Warid
telecom. Mehdad is responsible for the development and implementation of the marketing
plan for the Marketplace and he oversees all planning and operations of the Marketplace.
Mr. Tareq Islam Shuvo, Ms. Shahana Ferdousi, and Ms. Farjana Ehsan report to Mr.
Mehdad.
 26 Management & Operations Plan
Mehdad Mamur Mannan
Shahana Ferdousi
Tareq Islam Shuvo
Farjana Ehsan
Roam with the flavor of Bangladesh
6.1. Management Description
-Expertise
Executive Director. Ms. Shahana Ferdousi is serving as the Interim Executive Director of
the SpiritBangladesh and is primarily responsible as Project Manager for the growth of the
business, including negotiations for product procurement as well as marketing initiatives.
Ms. Shahana in an entrepreneur with marketing experience. Over the course of her career,
she has experiences in economics and planning. A results-oriented executive with
extensive experience, she combines knowledge of marketing and promotion with expertise
in strategic planning, business management, and negotiation. Shahana oversees product
selection processes, negotiations with suppliers and printing, as well as managing
operations and logistics.
Chief Financial Officer. Mr. Tareq Islam Shuvo, who serves as the Chief Financial Officer
for event management unit of SpiritBangladesh. Shuvo has expertise in financial
forecasting and planning. He did his major in Corporate Finance. As being creative in
nature, he always tries to use his financial knowledge in innovative businesses. Shuvo has
superior skills in financial management and has provided strategic guidance for
SpiritBangladesh’s event management unit during a period of unparalleled growth. Shuvo
is responsible for the finances of the Marketplace and will contribute to the planning and
implementation of strategic corporate involvement.
Director of Operations. Ms. Farjana Ehsan, the Executive Director of the
SpiritBangladesh, serves as the Director of Operations for the event management unit.
Farjana has a by born ability to motivate and lead the people. Having this leadership skill
she will oversee all the operations with her wise jurisdiction.
27 Management & Operations Plan
SpiritBangladesh has all
the supporting
departments that a global
business should have
Roam with the flavor of Bangladesh
6.1. Management Description
-Team Formulation
The following teams will actively participate in the activities of
SpiritBangladesh.
o Information Technology. SpiritBangladesh has a highly skilled and dedicated IT staff
and design team led by one chief designer. Under this team most of the members are part
time worker. This team will manage the design, testing, and implementation of the pilot
phase of the SpiritBangladesh.
o Logistics and Implementation. Under Farjana Ehsan’s leadership, the
SpiritBangladesh has strong raw material supplies infrastructure. A senior logistics team at
the Menna Bazaar packaging, has also indicated their willingness to lend their expertise to
the effort.
o Communications. A broad range of communications needs is required to launch and
maintain the Marketplace. Spirit Bangladesh’s Senior Manager of Communications, Md.
Arif Zaman, will contribute oversight duties to the SpiritBangladesh.
o Marketing & Distribution. Strong and persistent outreach to the full range of potential
consumers will be required for the long-term success of the Marketplace. President Mehdad
Mamur Mannan is leading the marketing efforts for SpiritBangladesh.
• Governance. As the SpiritBangladesh’s business is a highly patriotic one, so the
management team and the board of directors are highly enthusiastic to make a new thing
happen.
In addition, the SpiritBangladesh will recruit one voluntary external committees to assist
the venture, as follows:
o The National intellectuals. To provide informal guidance regarding the development of
the idea as well as to increase the awareness and prominence of the venture,
SpiritBangladesh is recruiting a small group of highly visible individuals to assist in a
range of activities. The nominating process is underway and individuals currently under
consideration include prominent writers, business leaders, and intellectuals.
28 Management & Operations Plan
6.2. Support Services
SpiritBangladesh is committed to explore the country in a unique way with
profit. To ensure that efficient management is essential. So there will be learning session
for the management team. The focus of the coaching programs will be drive the
management towards efficiency
B
a
Sn 6.3. Ownership
pg Board of Directors are the owner of the company. President will get 30% of
i l the profits, and other 3 will equally get the rest of the profits.
r a
i d
t e
s
h

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 Financial Plan
7.1. Funding & Breakeven Point

-Funding & Breakeven Point

SpiritBangladesh made the initial cash investment of BDT4000,000 for

start up the venture. Additional costs of raw materials and day to day operation totaled
BDT7500,000. The venture will be initiated using newly installed resources of
SpiritBangladesh, including technological infrastructure, facility and staff time. A prorated
portion of staff time and facility rent, totaling BDT200,000, was attributed to the
SpiritBangladesh. There will be significant cash flow from the very beginning. The
company will receive significant cash flow from the first year of its operation. It is
anticipated that break even cash flow for SpiritBangladesh will come by December 2008.
Breakeven Sales=BDT11970000

Sales in BDT
19000000

Break even within 2

years of operation
11970000

Year 1 2 3
Breakeven Point Analysis in total sales.
Roam with the flavor of Bangladesh
30 Financial Plan
7.1. Funding & Breakeven Point

-Economies of Scale and Infrastructure

The SpiritBangladesh during its pilot phase utilized the technological

infrastructure, facility, database, staff, inventory and warehousing maintenance capacity,
database of several thousand potential customers, and warehousing and publisher
relationships of the other company. With this advantage, at this time there are no significant
venture-specific facility costs, leasing issues, or equipment purchases. A percentage of
infrastructure, facility and administrative costs are allocated to the SpiritBangladesh, as
well as increases in marketing expenses and operations.

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 31 Financial Plan
7.2. Pro forma statement of activities
Yr. One Yr. One Yr. One
Forecast Forecast Forecast

Operating Revenue
Sales 8000000 14000000 19000000
Total Operating Revenue 8000000 14000000 19000000
Key Assumptions:
Here is a projected statement of activities for Cost of Product
the next 3 years. All the values are projected Salary & Benefits 2500000 3000000 4000000
and can be changed. Raw Materials 5000000 9000000 11000000
As we are producing only one product so our it Overhead 150000 225000 365000
is assumed that shopping bags are the only Infrastructure Costs 220000 250000 275000
source of our earning. Total Cost of goods 7870000 12475000 15640000
Our startup capital will come from our savings
and donations. So, there is no interest charge. Grant Profit 130000 1525000 3360000

Expenses
Depreciation 100000 100000 100000
Start up cost 4000000 - -
Total Expenses 4100000 100000 100000

Net Income/ (Loss) (3970000) 2545000 3260000

7% of the income - 178150 228200
Net Income - 2366850 3031800

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32 Financial Plan
7.3. Analysis of Major Expenditures and Income
Here is a projected analysis of major expenditures of SpiritBangladesh-

Raw Materials- Expenses on machineries are one of the major expenses in

Raw Materials this business. As the vision of SpiritBangladesh is a high, they have decided to buy their
Salaries own printing and cutting machines to reflect their vision. This huge expense will cost BDT
Marketing 3000000.
Distribution Salaries- There are huge expense for paying the salaries of the labors and
management. There is another expense for regularly train up the employees.
SpiritBangladesh want to be a learning organization where performance and learning will
be evaluated together. For the first year this expense will be BDT2500000.
Marketing Expense- SpiritBangladesh will go for personal selling for its
customers. So, there will be salaries instead of marketing expenses. But there will some
Sales other promotional activities too.
Distribution Expense: We have expenditure for distributing our product to
the customers. For this purpose we will hire vehicles from outside though the distribution
channel will be on the company’s control.

Here is a projected analysis of major Income of SpiritBangladesh-

Sales- Sales is the only source of earning in this business. From the second
year of operation there will be rapid increase in sales revenues. This revenue is projected to
reach almost BDT19000000 in the third year, 200% of second year.

Roam with the flavor of Bangladesh

 33 Financial Plan
7.3. Analysis of Major Expenditures and Income

Cost Treands

In the graph beside it is clear that there 15640000

is a downward trend of costing. 12475000

Costs
Efficiency in operations resulted that.

7870000

Year

Series1

Roam with the flavor of Bangladesh

 34 Financial Plan
7.3. Analysis of Major Expenditures and Income

Sales Trends

19000000

In the graph beside it is clear that there 14000000

Sales
is a upward trend of sales. Efficiency in
marketing and distribution resulted that. 8000000

1 2 3
Year

Series1

Roam with the flavor of Bangladesh

 Risk Assessments and Contingency Plan
Our contingency plan in every
section is capable enough to
rescue the venture.
Roam with the flavor of Bangladesh
-Major Risks and Management Plan to Mitigate Risk
• Risk: Low sales.
Mitigation: if sales go downward then SpiritBangladesh will give its effort for personal
selling. Excellent and trained sales force can help to increase the sales.
• Risk: Competition.
Mitigation: Competition is inevitable. Our distinctive features are the key to our sales. In
case of competition we will attract our customers with our distinctive features.
• Risk: Difficulty attracting talented staff.
Mitigation: It may seem difficult to find the appropriate personnel. But attractive package
offering for the personnel and opportunity to learn can motivate the right personnel.
• Risk: Marketing barriers.
Mitigation: SpiritBangladesh believes that the expertise of experience Mehdad Mamur
Mannan is well enough to destroy marketing barriers. But in case of emergency we will
develop some contingency planning for consistent performance
• Risk: Crisis in reputation.
Mitigation: from the very begging SpiritBangladesh will try to create its value in its own
market. Our value will be our recovery in the situation of crisis on reputation. We also can
make advertisement to remove any rumor.
• Risk: Inadequate space.
Mitigation: Our operations team will always look at that.
 Sample Advertisements

B
a
Sn
pg
i l Get smart
Get smart
r a Get the spirit
i d Get the spirit
of Bangladesh
t e of Bangladesh
s
h

SpiritBangladesh

Roam with the flavor of Bangladesh

 Sample Billboard

THINK LIGHT, THINK DIFFERENT

Roam with the flavor of Bangladesh

sh
Ba Spirit
ade
ngl

Roam with the flavor of Bangladesh