ACKNOWLEDGEMENT

The business plan is titled as “WOODIES Furniture Store” has been prepared to fulfill the
requirements of BBA degree. We are very much fortunate that we have received sincere
guidance, supervision and co-operation from various respected people while preparing this
project.

One of the most pleasant parts of submitting a report is the opportunity to thank those who
have contributed to it. Unfortunately, the list of expression of thanks- no matter how
extensive is always incomplete and inadequate. These acknowledgements are no exception.

Our first acknowledge goes to the almighty Allah for bestowing us the patience and courage
to finish this huge task within its deadline.

Acknowledgments must go to the team members, whose unflagging patience and astounding
capacity for creative work, and long hours made the project both possible and successful –
under the pressure of knocking deadline.

At last, we sincerely acknowledge our debt to Mr. Abu Saad Shezanul Huq, our
honorable faculty, for his valuable counseling towards the improvement of the project.
Without his encouragement, this would have been impossible. We would like to thank
the authors of the books that we’ve taken help from, which had made our understanding
clearer during the making of this report.

1
 Executive Summary

"WOODIES" is a retail furniture store that gives their clients top notch, stylish furniture at an
incredible cost. The fundamental retail outlet is situated in Badda which is the focal point of
Dhaka. The Head office of WOODIES is situated at Uttara which is the center point of all
large scale exchanges that will oblige the necessities of our other retail clients. WOODIES is
a mid-level retail location in the whole inventory network of the wood business. We fill in as
mediators that move the items from the makers to the purchasers. We however additionally
give customization offices which oblige us to make the furniture from the wooden sheets that
we get from producers.

2
 Table of Content

Subject Page No
Introduction 4
Business Model 6
Business Environment Analysis 10
Porter Five Forces 14
Industry Analysis (Competition Analysis) 16
Market Segmentation 20
Market Size and Attributes Analysis 21
Description of Venture 23
SWOT Analysis 24
Production Plan 26
Retail Operation or Service 28
Operational Plan 30
Marketing Plan 34
Organizational Plan 37
Assessment of Risk 41
Financial Plan 43
Bibliography 50

3
 Introduction

Name of the business:

“WOODIES Furniture Store”
Address of the business:
Showroom 45A, Level 04, Block B, Rajuk Commercial, Uttara, Dhaka 1230

Names and addresses of the principals:

1) Rifatul Sazal
House#2, Road#19, Sector#12, Uttara, Dhaka-1230
2) Farhan Almas Karim
109-114, Block D, Mirpur12, Dhaka, 1209.
3) Syed Rashedur Rayhan
House-8, Road-1, Sector-6, Uttara, Dhaka-1230
Bangladesh
4) Sharif Rafiur Rashid
20/C Kabi Jasim Uddin Road, Kamlapur, Dhaka 1217
5) Zeba Adiba
House B-122, Road 20, New DOHS, Mohakhali, Dhaka 1206

4
Nature of the Business:
WOODIES Furniture Store will be a retail furniture store for the premium customers.

Statement of Financing:

In the wake of conveying our different expense and money related investigation we have
perceived that a sum of 19, 50,000 BDT is the required startup expense of the business. Out
of which 3, 50,000 BDT will be accomplice's commitment and 16, 00,000 BDT will be raised
through credits, value and obligations.

Disclaimer:

This report is completely confidential and is a property of the co-owners listed above. It is
intended for the use of people to whom it is sent and any reproduction of this statement and
its content without the consent of the company is strictly prohibited.

5
 Business Model

Customer Segments:

Since we are a retail company, our target segments include individual customers purchasing
for direct use and other small retail businesses. We are targeting traditional customer who are
educated and are more into sophisticated designs. Also those customer who wants value for
money products more.

Customer Relationships:

Client relationship is crucial for our business to guarantee rehash buy. We will be keeping up
two separate databases for the two client bunches. Other retail organizations will be
continued persistent tab about the exchange rebates and rebates on mass buy. Then again
singular clients acquiring for conclusive use will be continued tab about the regular deals and
rebate offers. Further after buy expanded administrations will be given, for example, free
repair if harm created in the initial 6 months. Representatives who will be in direct contact
with the clients will be prepared to guarantee ideal administration and empower building
client relationship.

6
Channels:

Our items will be accessible at our outlets and in other little retail locations that will offer our
items. Our primary and biggest outlet will be in Badda, Dhaka and we will have an office at
Uttara Dhaka where requests will be taken and item will be made.

We will likewise have internet buying and Tele buying with conveyance framework for our
clients.

Value Proposition:

We are furnishing our clients with fabulous quality furniture which are both privately made
and imported at a sensible cost. We are giving premium items to our clients at a nearly low
cost. They get great quality items that are extremely solid at an extraordinary cost! We
additionally give the customization facilities.

Key Activities: our key activities include

 Taking orders from customers in Badda, and at Uttara

 Ensuring smooth supply and availability of various product designs
 Making the order taken from customers (Customized option)
 Carrying out sales transactions
 Delivering products to customers
 Providing augmented services
 Transporting products to all of our retail outlets
 Carrying out promotion activities online and otherwise
 Keeping a tab of good that are to be imported

Key Resources include:

 Wood and wooden board (as part of raw materials)

 Equipment
 Human Resource (the Entrepreneurs, carpenters, employee, etc)
 After sale servicing activities and requirements
 Office, retail outlets, etc
 Office equipment and supplies

7
Key Partners include:

 Wood and Wooden board suppliers

 Equipment suppliers
 Complete furniture suppliers
 Customers
 Distribution channel participants
 Intermediaries
 Employees
 Business affiliations

Cost:

From our financial analysis we have recognized that cash flow from operations will
approximately sum up to be 400,000 BDT.

Revenue:

Our income source is from the offer of items from out outlets and customized plan orders
taken.

Pricing Model:
Since 'WOODIES is situated as premium retail supplier of completed furniture and our costs
will be premium costs as well. In any case, contrasted with other premium contenders our
costs will be low. We plan to give high caliber, strong, and even tweaked furniture at a low
cost to the market.

Social Goal
Providing so as to think socially we mean to diminish unemployment job chances to gifted
and untalented work. In our whole business chain we require numerous people to meet our
every day operations need. Further we additionally have faith in youth strengthening,
subsequently we will be giving a portion of our benefits for the instruction of underprivileged
children. We will also accommodate the instruction of the children of our representatives.

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Financial Sustainability
We believe that our business is fiscally manageable since the interest for wooden furniture
has been expanding in the course of recent years. Our cash flows discussed in the financial
section of the report will further transparently show the expected cash flows over the first five
years thus displaying the financial sustainability.

Sustainability

In order to ensure sustainability we will look into adaptability. Our plans and items other than
being modified will likewise be tremendously upgraded with the new patterns. Further our
fundamental outlet is at Uttara on the edges of Dhaka, since it is an a great deal less
immersed market than Dhaka is. This allows us to successfully abuse the business sector and
reinforce our position in the business sector. After some time when Uttara business sector
will start getting more saturated we will have the capacity to extend to further markets along
these lines guaranteeing our manageability.

Eco- friendly
Since nature is a noteworthy worldwide concern, we investigate making our items as
environmentally friendly as possible. Our carpenters will be prepared to lessen wastage or
crude materials (Wood and wooden sheets) however much as could reasonably be expected,
along these lines additionally diminishing the expense. Further we will enjoy reusing and
reusing wood. We likewise will utilize environment well-disposed wooden sheets that are
considerably tougher than the plain wooden chip board.

Ethical
We will guarantee moral practices by passing moral approaches that must be trailed by
representatives inside of the organization keeping in mind managing clients. Further we will
keep up an all around characterized moral standard as far as representative treatment and
compensation. We won't skip tax as time goes on it ends up being unsafe to the business
picture.

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 Business Environment Analysis (PESTEL)

Political:

These factors determine the extent to which a government may influence the economy or a
certain industry environment (economic environment) to a great extent.

I. There have been no fair national elections in recent years but in the long run a sudden
change in government can affect a lot to the business because with change of every
government there are changes in rules, regulations, taxations and others legislations.

II. Bangladesh was ranked as the most corrupted counties in the world for several past
years. Corruptions in organization are one of the most concerning issues in Bangladesh. The
implementation of intellectual property right or rule of law is still not satisfactory. This
corrupted situation won’t be improved that easily. These rules and legislations need to be
standardized and implement them properly or else the business would take a heavy toll in the
long run because of the lack of these.

III. There are already enough taxation rules and legislations in our country but those are
not followed strictly. First there is timber tax, secondly corporate taxes and then there is
income tax. So this is huge cost for the business.

IV. There is quite a large tariff on the import of wood which varies from 10 to 80% of the
price of the wood. This puts quite a barrier on the price competitiveness of the furniture itself.
However as the tariff is put on all the imported wood this puts the producers at a level playing
ground, which means all are competing at similar cost.

V. In order to run the business smooth and grow faster businessmen need to keep the
local govt. happy so they don’t cause any harm to the business for a personal agenda.

10
Economic:

These factors are determinants of an economy’s performance that directly impacts a company
and have resonating long term effects.

I. The GDP of the country is $150 billion and per capita GDP is $957.82 according to
the statistics bureau in 2013. It shows significant change in the economy of the country. For
2013 the GDP growth rate is around 7% so the economy is definitely growing.

II. Growth rate in the wood industry is around 20% for the last five years. Inflation rate
is about 12% in Bangladesh.

III. The unemployment rate is around 5% with a huge number of 90 million people for the
labor force. With this huge labor force it would be easy to build a workforce for the business.
The labor force is huge and easy to build a work force the main problem is they are not so
skilled.

IV. Labor cost is cheap in Bangladesh compared to other countries and compared to china
it is actually very feasible as the cost is almost one third of that in china. Business cycle of the
wood industry is in its growth stage. Large scale manufacturing only started properly from
the 90’s and the demand for furniture is only increasing with the growth of the country itself.

Social:

These factors scrutinize the social environment of the market, and gauge determinants like
cultural trends, demographics, population analytics etc.

I. The population of our country is 166 million in 2013 and the growth rate is 1.6%
according to BBS. And average life expectancy is 32 years.

II. So the population of Bangladesh is very young and the population is increasing in
education as well means there will be further improvement in the income distribution in the
coming years. This in turn will increase the demand for all household items including
furniture.

III. Globalization has a heavy effect on the lifestyle of the population of our country. It
shifted the big and old fashioned furniture into more decent designed and well fitted
furniture.

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Technological:

These factors pertain to innovations in technology that may affect the operations of the
industry and the market favorably or unfavorably.

I. All furniture industry use manual labor to produce their furniture and use craft the
furniture by hand. It is wastage of time, labor and wood. So new technology would be used to
craft that furniture without wasting inventories.

II. Bangladesh is comparatively lagging behind in the use of high tech machinery to
produce quality furniture that can compete with others. There is still a definite waste of wood
in all productions when it comes to the process of carving the wood which is not yet really
solved. Designs need to be improved as well as they have not been really been upgraded for
quite some time in most of the large scale manufacturers and small investments do not have
the knowledge to come up with new designs. Labor skills are also quite unrefined as there are
not many training centers and most of the carpenters are illiterate and unaware of new
technology and designs.

Legal:

These factors have both external and internal sides. There are certain laws that affect the
business environment in a certain country while there are certain policies that companies
maintain for themselves. Legal analysis takes into account both of these angles and then
charts out the strategies in light of these legislations.

I. Ironically there is not much pressure in case of environmental laws in the furniture
industry as most of the wood is imported from Myanmar and Africa. There are national law
for deforestation and timber business but those are not maintained or implicated strictly.

II. There is a lack of labor laws in the industry as of safety standards or overtime. Only a
few general labor laws are practiced and then only in the registered big firms only.

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Environmental:

These factors include all those that influence or are determined by the surrounding
environment. This aspect of the PESTEL is crucial for certain industries particularly for
example tourism, farming, agriculture etc. Factors of a business environmental analysis
include but are not limited to climate, weather, geographical location, global changes in
climate, environmental offsets etc.

I. As the wood is mostly imported there is very less impact on the environment in our
country. But still companies need to a heavy tax on the exported timber.

II. We will use the local timbers too that mean there will be deforestation which will
hamper the whole ecological system: Air pollution, loss of endangered species, soil
degradation.

III. There are strict laws about cutting down forest for timber but those laws are only in
papers and have no proper implication. Local people cut down forest without even thinking
about outcome.

IV. However there is a huge amount of wastage in this industry because trimmed wood
can’t be used for making any other furniture.

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 Porters five forces

Threat of New Entrants

The threat of new entrants for this industry is very low as it is not easy to get access and be an
entrepreneur in this industry. It all starts from government bureaucracy causing the creation
of barriers to entry. Then getting cost advantage and economies of scale which can only be
attained in the long run. Also we have to look at specialized knowledge and technological
protection which can be very costly. Hence new business, even if they somehow enter in this
industry, won’t be sustainable in the long run for them.

Competitive Rivalry

The number of existing business is very high with a wide range of quality being offered by
those businesses. The switching cost of this business is also very high so real commitment
and high finances are required to make a business which is successful and can be sustainable
in the long run as well. The customer loyalty is moderate for this industry. Hence to
conclude, the competitive rivalry for the industry is very high.

Supplier Power

The availability of wood is pretty high all over the country and hence the number of supplier
is also very high. Only Otobi and Partex provide some bit of uniqueness amongst all the
business out there in the industry. Due to the high number of suppliers, the supplier switching
cost is pretty low in the industry. So the combination of these factors results in the supplier
power of the industry being low.

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Buyers Power

Due to hugely diversified size of the market, the price sensitivity is pretty moderate in the
industry. The difference between competitions is very high as it is mainly dominated by
Partex and Otobi and the other businesses can’t come even remotely close to these giants in
the industry. Cost of changing for the buyer however is not that much as long term
commitment is not required for the products being bought in the industry. To conclude, the
buyers power in the industry is not very high neither very low as it is in a very moderate
level.

Threat of Substitution

The threat of substitutes completely depends on two factors. One is the cost of changing from
the current product to the substitute product. And another is the performance of substitute in
the industry. There is really not much substitute for products like this for the majority of the
population here in Bangladesh. The potential substitute can be the sofa foam and the couches
which can only be seen amongst the higher socio economic class in the population due to
higher prices. Hence the threat of substitution for the industry is also very low.

15
 Industry Analysis:

Competitive analysis:

In the wood and furniture industry there is a lot of competition. The main competitors will be:

 Hatil
 Partex
 Otobi

Hatil:

Hatil Complex Ltd. is doors and furniture manufacturer in Bangladesh. It was established in
1989 following the lead of reputed timber processing company H.A.Timber Industries Ltd
(1966). This company produces wooden home, office, hospital, industrial & hotel furniture,
doors, smoke cabins, interior solutions etc. It is basically a private limited company with
limited share and does the business of manufacturing, import and export. It is endorsing its
furniture with tagline, Slim is smart.

Hatil’s market share spread in more than 10 countries throughout the world including
Germany, Netherlands, Ukraine, Switzerland, Sweden, Denmark, Singapore, Thailand, India,
and Japan.

SWOT Analysis:
Strengths:

1. Highbrand value
2. Equipped with advanced machineries
3. Skilled craftsmen
4. Innovative design
5. User and environment friendly design

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Weakness:

1. Limited distribution channel

2. 2.Higher product price

Opportunities:

1. Growing customer base

2. Exploring International market
3. Cost-efficient technology

Threats:

1. Extreme competition
2. Downward pricing pressure
3. Compressed product life

Partex:

Partex Furniture is leading manufacturing furniture, brought revolutionary changes in the

furniture market in our country since its start 2000 and owned by Mr .Aziz Al Kaiser. First it
had started in a small scale, but today partex furniture is fully equipped with latest
technologies.

Partex has vertically integrated in to the furniture industry. Partex had the upper hand in
producing the particle board which is the raw material to produce furniture and they used to
supply this particle board to other furniture making companies to produce furniture .But the
corporate manager decided that they could vertically integrated in to the furniture industry
since they would be producing their own raw material .they also came up with an innovative
idea of making use of the unused part of the log which they use for making particle board.
Partex also has a widespread distribution network which it can use for the furniture as well.

It may be added that partex has vertically integrated in other businesses as well apart from the
furniture industry .Fr example, under complex -partex had Danish condensed Milk (BD) Ltd.
Danish Food product, Danish milk mills Ltd .Then partex vertically integrated and came up
with Danish Distribution Network Ltd.

17
Because of vertical integration, partex enjoys some competitive advantage compared to its
competitors.

Partex has invested in the furniture industry and this huge investment acts as an entry barrier
to its potential new entrant.

Partex will also be able to realize Economics of scope since they are fully integrated in the
furniture industry i.e. from producing raw materials to distribution them.

They have two in the furniture industry: one is timber based furniture and the other is panel
based furniture.

Otobi:

Otobi is a leading positioned company in furniture industry in Bangladesh. It creates a strong

position at its successful competing with the other furniture organization of Bangladesh.Otobi
has a strong product line.

Product Line:

 Office Furniture
 Household Furniture
 Computer Furniture
 Hospital Furniture
 Decorative Items
 Kitchen Cabinet
 Special Built in Cabinet
 Work Station
 Various Engineering Products
 Interior Project
 Accent and Decors
 Official Stationeries
 Customized Product

18
We believe our competitive nature thoroughly ensured as when we provide highest quality
product in the most perceived prices and provide them a customized service that will not
given by any other company in the furniture market . These will help us to find an extra edge
than our competitors.

19
 Market Segmentation
To be successful in any business segmentation is very important. It will help to clear the
target market, whom we should target, over whom should we invest and others. First of all
we will have to segment the market in a shorter basis. Because of being a new brand we
should attract any specific target markets after doing our segmentation.

Segmentation of WOODIES:

Demographic: WOODIES is a moderate brand which will provide customers a good quality
and wider range of products at a very reasonable price. We are not just a furniture provider;
we will also act as furniture technicians. Our segmented people will be generally middle-
class, upper middle-class and upper class as well. Mainly corporate people and businessmen
will be our main targets.

Geographic: If we have to segment our market by regional basis we will be choosing the city
people first. Because we are a newly launched brand and we cannot attract the whole
population simultaneously. So the city people will be our target. But to be more specific
initially the people from Uttara, Bashundhara Residential Area, Banani, Gulshan, Dhanmondi
will be the areas we will focus more. Our showroom will be at Uttara so obviously Uttara
people are the primary targets and the other areas nearby Uttara will also be covered by us.
The other areas are the elite areas of our city. Expensive offices, restaurants, saloons and
other things are found easily here the most. So we will be focusing their support and
attraction. Then we will try to focus on other areas like Motijheel, Shantinogor, Baily Road,
Elephant Road and many more.

Psychographic: People who love innovative and unique things they will be our targets
because will be providing them a very unique service including a customized service system.
This will help them to make their products own. This will make them feel valued and they
will be loyal to us as well we think.

20
Market Size (Current and Future)

Market Trends

Actually the market trend is so remarkable. Because of the good business position in the
market, wooden industries growth increase day by day. According the officials of Bangladesh
Furniture Industries Owners Association (BFIOA) there are a total of 9,913 wooden and
2,628 non wooden furniture manufacturers in Bangladesh employing around 1,19,810
workers. Also there are around 74,926 carpentry households employing another 1, 54,285
workers. Adding to this, there are 1, 20,000 craftsmen producing soft furniture and 200,000
suppliers supplying raw and semi-processed materials. Out of this huge employment, almost
1, 00,000 workers are women. Among the employees working in furniture sectors, 20% are
working in large industries and 80% are working in SMEs. There are a number of wooden
clusters in Dhaka which are located at Badda, Sutrapur, Mirpur area of Dhaka. A number of
large wooden furniture factory have their factory in Savar and Gazipur area.

Market Growth Rate

In both local and international market, the growth of Bangladesh furniture market is evident.
The booming real estate sector in Bangladesh and the rising demand of furniture product in
world market, lead the expansion of furniture sectors in Bangladesh. In fact, the demand is so
elevated that the demand supply gap is evident in Bangladesh. While the industry is growing
at a rate of 9.55%, the demand for furniture is increasing by 20%. Local production for
furniture of USD 958 million along with USD 16.84 million imports. Bangladesh earned
$19.26 million from exports of wooden furniture in fiscal 2009-10. Local manufacturers
export to the US, Canada, Australia, UK, Middle East, Gulf countries, and other Asian
countries, like India, Japan, Taiwan, Singapore, Thailand and Vietnam.

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Market Profitability

Market profitability depends on 3 different classes of manufacturer.

Firm Size No. of Average Annual Gross Profit Net Profit (%)
Enterprise Sales (%)
Micro 7,961 1,877,400 21.6 9.87

Small 1,676 5,118,333 25.74 12.41

Large 35 104,100,000 35.80 15.8

Industry Cost Structure

Industry cost structure depends on the size of the business, cost of raw materials, export and
import cost and labor cost. Most established wooden furniture manufacturer in our country
like Otobi, Partex, Navana furniture, Akther furniture they all started with small capital. For
example otobi established in 1975 with an opening capital of 5000TK. But now it’s take huge
cost if anyone wants to open a wooden furniture industry and now labor cost also the main
key issue which also increases the cost of the industry.

Distribution Channel

The direct channel - neighborhood furniture producer sells to customers via the direct
channel. The manufacturer-retailer-consumer channel - channel commonly most used. The
direct channel in business-to-business marketing - The very name business-to-business
suggests the importance of the direct channel in the field. The direct channel is one of the
most commonly encountered in the marketing of organizational products/forest products. To
reduce the distribution channel cost sometimes it’s necessary to remove the middleman. But
in some cases, total cost might very well rise, not fall, if middlemen are eliminated.

Key Success Factors

Key success depends on few factors like how do we differentiate our company from the rest
of the industry, what distinctive features do we products/services have, what are our
competitive advantages, warranties, marketing support, technical support, and any other
“field” support we provide.

22
 Description of ventures

a) Product:

We are focusing on the retail segment of the inventory network administration in the furniture
business. Our item is any sort of furniture. Other than furniture we are planning to have
contacts with some renowned interior designer companies & also with some office furniture
vendors. We’ll also do furniture installations in houses & also do shipping for our clients.
Our main goal is giving quality items to the clients.

b) Service(s):

Our administrations incorporate altered furniture that we will accommodate clients inside of
an allotted timeline. Furthermore inside improving administrations that we'll accommodate
clients as indicated by their interest. This is the primary reason that we are going into the
business. With respect to WOODIES this is an upper hand from the other furniture
organizations. A different administration that we will give is home conveyance and after
deals administrations, for example, support of wooden things and resale of old furniture.

c) Size of business:

We will work in medium measured outlets, which will be lease based. So our expense ought
to stay less with a most extreme of four staff in every outlet. These staff will be prepared in
deals, administration furthermore programming operation for the specially craft creation.
Notwithstanding we plan to open chain shop everywhere throughout the nation later on so
size of the endeavor will increment radically later on.

d) Office equipment and personnel:

Head office will be arranged in Dhaka which will relate everywhere throughout the nation
with the outlets. Our introductory office space required is just direct as we are just beginning
up. Furthermore, to spare expenses we sick lease our office space. Beginning office will
begin with just the business visionaries working full time, we will contract part clocks from
distinctive colleges at first with a degree for full time if their work is great. There is
requirement for a couple of PCs and tables to work the business in beginning stage. We will

23
be making the greater part of the supply from the suppliers through the head office to the
outlets. There will be need of development later on as the business develops.

e) Background of entrepreneurs:

Our business visionaries are all alumni of North South University. Two of the heads have
employment experience from distinctive furniture producing organizations and have immense
information in the inventory network administration in the wood business. Another of them is
a second-era agent in this segment. We additionally have a promoting and development
master in the group. One of our partner’s has his family business involved in this sector & we
have advisory board of expert involved directly in this industry.

SWOT Analysis

Strengths:

Serving to different corners of the nation will be our fundamental quality combined with the
administration group and the mixture of brands of items we will be offering at a low cost. The
idea of retail chain in the furniture business is seldom considered so there are not very many
rivals in that particular business. We’ll mainly focus on furniture we are planning to have
contacts with some renowned interior designer companies & also with some office furniture
vendors. We’ll also do furniture installations in houses & also do shipping for our clients.
Our main goal is giving quality items to the clients. So, we are targeting a distinct level of
grade where no one has ever touched.

24
Weakness:

One weakness will be that the existing suppliers will most likely have their own outlets that
we will be competing against and also the problem that we have is limited resource problem
& also we have to depend on our fnf for the outlets & funding. Supply chain management can
be difficult, as we will need warehouses that might increase cost to a disadvantage.

Opportunities:

The customization of furniture will be a new market that we can work on. Online designs can
be received from customers and it can be an order based supply. We are planning to work on
an untouched version in the furniture industry. We are planning to contact with all the interior
designers who are famous now a days. They’ll buy furniture materials from us directly and
use our intermediaries to locate or use them in the sites that they are working on.

Threats:

Promoting furniture in country regions is troublesome as we will be rivaling the little makers.
We need to figure out how to offer machine delivered furniture to have value deals and the
client. Other than that, Showcasing furniture in rural areas is troublesome as we will be
matching the little producers. We have to make sense of how to offer machine made furniture
to have worth arrangements and the customer. Additionally, rising development of the metal
furniture is a danger to the business. As we'll do put with everything taken into account
throughout the year, political circumstance in the nation can be a risk in here and there.

25
 Production Plan

Manufacturing Process

As we just start a new venture that’s why it will be convenient for us to take we take help
from the other renowned and established manufacture in the country. Firstly we try to
produce 09 different types of furniture’s some of which includes corner shelf, kitchen
cabinet, office furniture, doors and components etc. If we need some manufacturing is
subcontracted, we’ll be in the subcontractors. The name of the sub-contractors are Dhaka
woods, Chittagong timber mill and Khulna timbers and all are situated in Badda. Here is also
included the manufacturing cost. The cost of manufacturing the product depends on the size,
design, quality and quantity of woods and also future capital equipment needs depend on the
growth of the new venture.

Physical Plant
At first we will start up a small physical plant where woods will be processed for
manufacturing different types of furniture. We are going to start it at a small range as we
can’t afford to set such a big factory now but later if the growth rate is satisfactory then we
will increase the size of our plant.

Machinery and Equipment

Machinery and equipment includes circular saw, combo planner, edge bender, caliper, glue
spreader, finger jointer, road stick etc. all instrument we try to import from china and India
because of low cost. We will also need small equipment like seesaw, screw, nut, bolts and
also different items.

26
Names of the suppliers and raw materials
Our main material is wood which we mainly collect from our suppliers and the name of the
suppliers are Dhaka woods, Chittagong timber mill and Khulna timbers and all are situated in
Badda.

Answers:

1. Will you be responsible for all or part of the manufacturing operation?

 No. We will take help from the other renowned and established manufacture in the
country.
2. If some manufacturing is subcontracted, who will be the subcontractor’s'(Give
names and addresses.)
 Yes, if some manufacturing is subcontracted, we’ll be in the subcontractors. The
name of the sub-contractors are:
Dhaka woods, Chittagong timber mill, Khulna timbers
3. Why were these subcontractors selected?
 We have selected these subcontractors they are already more experienced in wood
manufacturing and they also have good labor supply and they are also good at
designing.

4. What are the costs of the subcontracted manufacturing? (Include copies of any
written contracts.)

 The cost of the subcontracted manufacturing depends on the how much contract we
give them.
5. What will be the layout of the production process? (Illustrate steps if possible.)
 At first we need space to set up machine and then we need labor and different cutting
instrument like seesaw, screw, nut, bolts and also different items.
6. What raw materials will he needed for manufacturing?
 Our main raw material is wood which we will mainly collect from different forests
and suppliers.
7. What are the costs of manufacturing the product? What are the future capital
equipment needs of the venture?
The cost of manufacturing the product depends on the size, design, quality and
quantity of woods

27
 Retail Operation or Service

1. From whom will the merchandise be purchased?

Since WOODIES is a retail service, we will first buy the merchandise from the producers or
manufacturers. Initially, we will purchase merchandise from top of the line producers like
Otobi, Hatil, Akhtar. We will import a portion of the furniture that meets our quality. This is
to meet our large scale manufacturing to supply or retail chains. Our different items that are
hand crafted or customized according to customers’ demands, those will be made by nearby
suppliers who are little time makers or cottage producers. These kinds of suppliers are
accessible in different places in and around Dhaka city and also in the urban and rural regions
of Bangladesh.

2. How will the inventory control system operate?

Every outlet will have its own different stock control framework that is computer operated.
Here information is gathered every once in a while in a timely manner and reports are sent to
the head office on a regular basis. Inventory will basically be of the displayed items as
storage room will be restricted. This is to be clarified in the following point.

3. What are the storage needs of the venture and how will they is promoted?

We will make an effort to do whatever it takes not to keep numerous distribution centers as it
will expand cost. We will oversee by without a moment to spare supply for the mass created
plans. Supply will be made directly from supplier's distribution center to the clients’ house.
This administration must be well considered as far as dealing with the strategy, in actuality,
situations. In situations where this will be unrealistic, as in outlets that are a long way from
the suppliers, we will lease distribution centers. Additionally we won't need distribution
center in supplying the specially crafted things as the products will be specifically sent from
their workshop to client homes.

4. How will the goods flow to the customer?

Products will be conveyed to clients by paid delivery services. We have had gatherings with
some nearby delivery service organizations that work in the fundamental urban areas and for

28
conveyance in the sub urban and provincial zones we will utilize rent-based methodology.
There will be some conveyance charge included in the sale of the products.

5. Chronologically, what are the steps involved in a business transaction?

Since WOODIES will be offering general products as well as customized products, there will
be two distinct business transactions.

In case of general item sale:

 Firstly, the sale is made.

 Secondly, customer leaves the place of residence
 Thirdly, the order-sheet is sent to industrial facility or closest distribution center of the
supplier
 Finally, the specific product of the respective customer is delivered to the customers’
house.

In case of customized item sale:

 Customer selects the designs they desire to have and pays 50% advance to start
request
 Design is sent to craftsmen with a due date given
 Then the finished goods is sent directly from the workshop directly to the clients’
house.
 The rest of the 50% payment is received to finish the order.

6. What are the technology utilization requirements to service customers

effectively?

Clients can successfully design all alone in our website and send order request on the
web. They can check their report on delivery of their products here. They can likewise
check the advancement of their request on hunting down their order number from the
websites.

29
 Operational Plan

A. Description of company’s operation

Each organization needs to work their business by their own process. It fundamentally
demonstrates that how an organization maintains their business by every day exercises. Our
organization will do wood business and we will likewise have the recipe with which we can
work our every day operations. As we probably are aware our organization's name will be
WOODIES and our item is going to be furniture, so it’s obvious that our fundamental
operations exercises incorporate drying, waxing, sanding, completing and different exercises
that need to keep up all the time in the event that we need to run effectively our business.
Exercises are portrayed under here which are critical.

The main activities to run a company’s operation are described below:

 Store Environment

Store environment is a vital factor and it’s our duty to make sure that it’s positive to the
customers. On the off chance, if customers they like nature and the environment of the store,
there are high chances that they will do most of their shopping from WOODIES. We offer a
decent situation which will give great appreciation for our client and they will return again to
visit our store.

A store environment is said to create a positive impression on customers’ minds when:

1. The store will have an attractive look with vast space.

2. All the items are found to be organized in a legitimate place and maintain it’s serial.
Likewise need to verify that items do not tumble or fall off from the space or racks.
3. The store will have a decent odor which will be pulling in the clients
4. Well behaved and friendly sales person are needed to increase customer satisfaction
5. Have to make a space where client will leave their accessories before entering the
store

30
  Customer Service
1. Should give a warm welcome to customers with greetings and upbeat face to gain
customers fascination
2. Help customers in picking great items and give points of interest of each item. In the
meantime serving customers with catalogues and handouts of product we offer for
selecting now or later
3. Being a retailer, it is important to remind that overselling products to clients should
not be done. Customers should be given a room for making their own decisions.

 Training Program

The store manager must arrange incessant preparing program. It is important for the business
agents, clerk and other colleagues to propel them from time to time. It could likewise build
the offer and increase sales growth of the company with time.

 Inventory and Stock management

1. The retailer must guarantee that the item should not be "out of stock". In the event that
it is then their duty to restore them.
2. Every retail chain is ought to have its own stockroom to stock the products.
3. Need to check inventory in a regular basis likely weekly manner or so and stock to
keep up it appropriately. Just in case, if there is an issue with stock, quick remedy or
examinations is required.

B. Flow of orders for good and/ or services

31
To begin with, firstly the client needs to place an order request from our items list which is
accessible in our inventory catalogue, online and site pages. At that point the request will
prepare into our database and we will get the request. At that point, we will settle the request
in our database that the client requested for in online or our store. We then will pick the
request from the warehouse and then do some finishing work to complete the deal with it the
client and finally delivering the products to the client. After the customer receives the
product, he/she will pay the bill by online or whatever way they are convenient with. This is
the way we will convey the merchandise to our client or end customer. This is the last
procedure of how to place an order request and how the delivery of the products will be
given.

C. Technology Utilization

Innovation is the most critical certainty for any business. In fact, it is a pivotal weapon for
any business. The majority of the organizations in present day time are succeeding in view of
development innovation through advanced technology. Any organization can survive on the
off chance that they have a proper use of technology and being a furniture company we will
likewise require some development and innovation to demonstrate the capability of our items.
Therefore, we must use innovation for our business.

Some of the technological advancement which will be most imperative to use for getting
along for survival in cutting edge time are listed below.

 Machineries

Great and substantial machineries and other apparatuses are expected to make furniture from
wood at present. And obviously, there are various types of machineries available each of
which has different costs. But machineries chosen to run the business should be propelling in
innovation. In addition, we need to make lots of furniture products at the earliest opportunity
to serve the clients as much as possible and as fast as possible. So we will purchase the
machineries and other hardware’s as fast as possible which works efficiently. Last but not the
least; cash invested to purchase machineries varies depending upon our financial plan.

 Internet

It is very clear that now-a-days we all are unable to run without a good internet connection. In
fact, the entire world relies on upon web. As a result of this internet era, WOODIES outlets

32
will be providing Wi-Fi technological innovation in our store so when client will come to
visit our stores they can use Wi-Fi to compare and contrast costs and others with other
branded furniture’s available throughout.

 Online

Our items will also be accessible in online so client can pre request the furniture from the
web according to customers time and convenience. Customers can likewise check through
our recently arrived items and review on that. Furthermore, customers can also remark about
our items which they like or not or ask for necessary amendments that should be made.

 Payment

Now-a-days in Bangladesh, a lot of payment methods for product delivery have been
discovered including online and mobile payment, payment through plastic cards, BKash,
UCash, with the mandatory payment method of cash in all companies existing in the country.
This is why, WOODIES makes sure that its outlets have all the possible ways to receive any
payment for product delivery that the customer is willing to pay through at any point in time.

 Websites

We will have our own company site and also Facebook pages since Facebook is extremely
popular in our nation at present so we will have an opportunity of a great business if we keep
uploading the pictures of our unique wooden products by making a group on Facebook called
“WOODIES” or through pop-ups in websites and in many more ways.

 Transportation

We will deliver our items by WOODIES company’s’ vehicles with absolutely free charge of
delivery, regardless of the location. Clients don’t have to take pressure regarding any
damages or late delivery of products as WOODIES will be taking the responsibilities of the
liabilities and conveyance of the items in time. Moreover, if customers place an order online,
this will also cut down their own personal timing and also transportation costs.

33
 Marketing Plan

A. Pricing

Our esteeming of the item will be altered as we will endeavor to give clients our premium
quality furniture at a moderate and obviously sensible or reasonable cost so common laborers
people can in like manner buy our things. We will be giving rebates when our new things will
come to draw in new clients and as an aftereffect of this, every kind of people who
additionally have lower pay can buy our things at a less costly rate.

Furthermore, WOODIES will in like manner offer some combo sets of furniture as in
customer can pick which set of furniture's they require. WOODIES will then make sets by
offering full room furniture alongside inside wooden embellishments if sought. We will in
like manner make some class of combo sets offering a reasonable rate for clients.

B. Distribution (Place)

In the wake of looking at, we picked that our store will be in Uttara, which is not all that far
off from our Dhaka city. The central driver for opening WOODIES show room in Uttara in
light of the way that in Dhaka there is an impressive measure of street turned parking area
and environment is awful so we are taking our store in Uttara as relatively movement is less
and our store will be tremendous in size yet on a basic level city it is difficult to find
enormous spot furthermore the interest for customization of wooden furniture's alongside
inside enhancement is high in there. Each one of the spots are possessed in Dhaka and
another basic reality arrives is a significant measure of adversary of rivals in Dhaka so in case
on the off chance that we open our show room in Uttara we believe it will be work as at first
number of contenders will be less. In the other hand, our head office will be in the most
surely understood spot in Dhaka, which is Motijheel. Here we will take clients request
demand and make our furniture as in Dhaka, access to hardware and different mechanical
assembly need to make furniture are promptly accessible. Consequent to making, we will
then take our furniture to Uttara to our outlet. In any case, any client willing to purchase from
the Dhaka outlet is likewise welcome.

34
 C. Promotion

WOODIES consists of five effective and efficient partners. Therefore, it can be said that our
budget is not a lower one at all and so we will have to promote our products if we want to
stand in a good position in the market. We will be spending good amount of money for this
promotion saved from our budget of course.

We can promote our WOODIES Company through a variety of channels including:

1. Newspapers and Magazines

This is a champion amongst all the most surely understood media in our country. Each kind
of people read at any rate daily papers in a normal premise if not magazines as it is shabby
furthermore contains heaps of news covering all parts of the nation. Accordingly, it will be
sufficiently astute in the event that we can give our business in the front or last page of the
daily papers. Clearly, for this we will require extra cash to persuade the news organization
however thinking emphatically, this will help us generally to advance results of WOODIES
around Bangladesh.

2. Online

At present, a day without a web association will acquire loads of troubles individuals' lives.
So it is likewise clear that we advance our items online through ads. We have to pull out in
few as often as possible went by locales where people visit like Facebook, twitter et cetera
furthermore a wide range of social destinations and the sites where people visit for buy and
offer of various things.

3. Radio

A substantial bit of people like to hear radio especially when they are at home and in
extensive drives like going for a lengthy drive or something like that. So WOODIES will give
their advertisements on their radio therefore helping us to advance our things. Additionally
giving a commercial in radio is not to a great degree extravagant or costly. Subsequently, this
could be a strategy for advancing WOODIES.

4. Television

35
It is a greatly costly media and could be our essential vital crossroads. Presently a-days, it is
elusive somebody who doesn't stare at the TV thus there are heaps of contenders of
WOODIES who are utilizing TV as their medium of advancement. Along these lines, now we
need to make an exceptionally special and eye-getting promotion to control the client's brains
else we will be losing our ventures on that. Subsequently, we will make a decent business by
an AD association and after that present it in TV.

D. Product Forecast

Our basic target is we will give best item and administrations to our customers. Our thing will
be not the same as different contenders as we will be putting forth premium things. Our basic
truth is that we will promise that nature of our thing will be solid as the customer expected;
i.e. nature of the item is strong as client anticipates that it will be. We will constantly
endeavor to give inventive and bleeding edge arrangements to our customer. All the furniture
will be unmistakable in arrangement and things will be overhauled in each specific period.

E. Packaging

Packaging or bundling is another crucial hotspot for pulling in customers. We will attempt to
make our item package so different and exceptional. The eye-getting message or logo
framework of our bundling will get respect for the customer. We will try to make everything
unique and splendid that one must like. Our pack will be made by strong paper which will be
protecting our thing from any kind of mishaps. WOODIESs bundling blueprint of item
package will be made by master maker and they will be paid high charge for giving the
organization such consideration. Our rule adage is to make assorted and look changed of
wooden furniture's, so this is a vital issue for us furthermore we assume that we can make our
item bundling level best than various existing contenders.

F. Positioning

Arranging or situating is a key part for every business. In arranging WOODIES, the most
crucial concern is that how appealing is our association name and how people are taking in
their psyches (i.e. decidedly or adversely) and this will in the end decide how effective we
are. WOODIES trusts that it has the ability to develop a productive brand and accomplish
clients' consideration by situating the wooden furniture items and situating the organization at
the correct place and perfect time.

36
 Organizational Plan

A. Form of Ownership

It will be an association business and each one of the people will be accountable for the
business. Accessories will be just similarly and commonly subject for all commitments of the
organization furthermore together at risk for all obligations of the organization. We are five
accomplices at present and we as a whole will be contributing shares similarly to maintain the
business.

B. Identifications of partners or principal shareholders

The name of our associations will be "WOODIES"; an organization serving interesting and
sensible furniture's and extensive variety of offices to clients. The region of our firm will be
at Savar, Dhaka and head office will be in new Elephant street, Dhaka, Bangladesh.

Since it will be an association business, we are going to begin off with five of us for this
association. We ourselves are the accomplices and the central shareholders of the
organization. Our accomplices' name and email locations are given beneath.

 Md.RifatulMaksud; rifatul.sazal@live.com
 Rafi Rashid; rafi.rashid@gmail.com
 ZebaAdiba; zeba.adiba@gmail.com
 Farhan Almas Karim ; farhan.karim@gmail.com
 ShawonRayhan; shawon.rayhan@gmail.com
C. Terms of Agreement
 It will be furniture business and we will be the retailers for this business. We will
make furniture from wood and offer them to adjacent nearby markets and to
commercial ventures identified with wood.

 Each accomplice will be contributing the same measure of cash and each one will be
giving Tk. 5 lakhs and in this manner gathering Tk. 20 lakh altogether

37
  If any accomplice is willing to pull back money reliably toward the end of a specific
period, they will have altered reasonable sum that they can pull back.

 Each accomplice will share advantage and incident similarly (as in benefit and
misfortune similarly) and each one of us will be putting an equivalent sum in the
business
 Check marking power: To pull back or store cash from the shared service of the
organization
.
D. Management Team Background

Each one of the people from administration gathering will be qualified. Our Managing
Director (MD) of WOODIES will be enlisting the workers or delegates on a reason of their
experience and foundation. We will make a solid organization gather so we can battle and
battle back with other solid contenders. Each person of the organization will be arranged by
managers for adding to their aptitudes and in this way growing the name and notoriety of the
business. Opposite side of Marketing, R&D, Production arranging, Human Resource, Finance
are called administration group so everybody, unmistakably will be responsible for their work
and needs to complete their separate works in due time, taking into contemplations the
standards and regulation of WOODIES obviously. The rules or guidelines made will be same
for all, i.e. what is reasonable for me is reasonable for all and what is uncalled for me is out
of line for all. Notwithstanding that, voting system will likewise be available. Every
accomplice and chiefs will have their own specific and will dole out to the post for which
they are suitable.

Roles and responsibilities of members in the organization.

 Managing Directors (MD)

WOODIES will have one MD who will be dependable or responsible for selecting laborers
and have commitment in regards to accomplishment and disappointments of an association.
The overseeing executive needs to manage all kind of drawing closer and out propelling
correspondence. Regardless of the way that the overseeing chief will be an associate of
proprietorship, nonetheless he/she will be paid. RifatulMaksud will be the potential and
meriting overseeing chief of our WOODIES.

38
  Marketing Head

The advertising head of WOODIES will be none other than our associate Farhan Almas
Karim. All the limited time courses of action and showcasing related errands will be finished
by him as he is from a promoting foundation. Other existing elevating managers are
welcome to suggest him in the occasion on the off chance that they have any great
advertising systems to apply in the business. Be that as it may, he moreover has a center
commitment viewing WOODIES as he needs to explore the business sector furthermore
needs to make course of action to execute it as a general rule. Notwithstanding that, he needs
to allot work to others promoting overseers and for that he will be moreover adjusted for
that.

 Production Manager

Rafi Rashid will be WOODIESs generation director which implies that he will be making the
creation department out of the association. The principle commitments of this position are
communicated underneath that should be fulfilled to maintain the business with no less than a
minimal benefit is:

 Control the whole creation process.

 Ensuring whether the crude materials are changed over to completed great viably and
productively in an auspicious way.
 Set standard and focuses for each fragment of the creation process furthermore that
check and confirm the sum and nature of crude materials used and conveyed
merchandise of a generation line.

 Research and Development (R&D)

Another associate, ShaownRayhan will be dealing with the R&D part of WOODIES since he
has a sufficient information in this field. An innovative work executive's huge commitments
are:

o Research for another item thought or alter the current one with intelligent
translations.

39
 o If an item is delivered by utilizing an option technique rather than the
genuine strategy arranged, the executive of R&D area needs to discover an
approach to shed cost for making a differing methodology.
o Focus basically on the planning of new item process and sort.
o Simultaneously, focus on change, advancement and adjustment
furthermore presentation of new thing, components, process, and so forth.
o R&D is the part which will make sense of the innovative headway as of
now acquainted with the business. What's more, it's the R&D parts chiefs'
obligation to be forward with new mechanical and complex business
approaches.

 Finance and Accounting Head

ZebaAdiba will be the overseeing chiefs of the Finance Head of WOODIES. Fund troughs
fundamental commitments to serve an association are:

 Finance administrators controls the game plan of yearly money related reports like
pay articulation, Balance sheet, Cash stream explanations, Statement of proprietors
value and so on., direct speculation exercises, and execute money administration
procedures.
 Develop and execute accounting and inside control structures, standard working
methods.
 To pass on definite and advantageous monetary value-based handling in Finance
shared administration focus.
 A money related administrator is responsible for giving budgetary advice to the
organization
 Formulating systems and long haul marketable strategy.
 Developing money related administration instruments that minimize monetary danger.
 Will be in charge of recording everybody's pay rates, rewards, motivating forces and
so on (For this situation, pay will be equivalent for each of the five accomplices
relying upon the net benefit yet there are likewise execution related pays to repay the
representatives working for WOODIES)

40
 Assessment of Risk

A. Evaluation of Weaknesses of the business

1. Lack of Experience

In a developing country like Bangladesh with an emerging and growing economy, many
firms locally and abroad wants to tap in mainly because of the low wages for labors which in
return would decrease the total cost of production and hence would allow firms to have more
flexibility in terms of pricing the right amount for the product. And the number of existing
business are pretty high so the level of competition is a major weakness since other business
will have access to more suppliers in the industry even before we enter the market.

2. Lack of Experience

We don’t have much experience about the industry which is also a big weakness for us.
Passion might not be good enough here because with experience comes knowledge which
determines what to do and more importantly what not to do in the industry. We only have
access to secondary data but we must consult with expert for getting primary data. However
this can also lead to new and more innovative and unconventional way of doing business.

3. Lack of Preparation
Our lack of preparation is a weakness that can’t be over looked here. It is very important to
grasp that line of effectiveness and efficiency in these situations and especially for a small-
business. This weakness often leads to multiple problems which gives negative outcomes
which can hamper the growth of the business.
4. Lack of Strong Contingency Planning

In any business, we should always be prepared for worse just in case about what if things
don’t go as planned which can result in a very catastrophic result. In our country business
often face unprepared legal issues, can be a victim of bureaucracy and in the case of our
business many things can be wrong. For example, a late shipment or blockade didn’t enable
us to get the goods in time which in return can hamper the business and hence there is always
a need of a strong contingency plan.

41
B. New Technologies
Customization is something which is very important in this business. And with the growing
interest in web, this can be properly utilized. The current competitors are not that much
strong when it comes to using the net and social media into their advantage. And we can also
look into making products which are ecofriendly due to the rising attention towards the
environment and give our customers that feeling of doing something or contributing to the
environment by buying products from us. New-edge innovation can make high advantages
for organizations that are willing to be early adopters. This technique, on the other hand,
obliges organizations to desert innovations that never completely develops or matures or that
are themselves dropped by their parent organizations. We will use the fast growing internet
sector in Bangladesh to supply the finished wood furniture to our clients. Additionally, we
will be gathering the raw materials specifically from the suppliers that are situated in west
side of Bangladesh. We will be using a fast track system which will enable us to give signal
whenever we have a shortage of raw materials automatically. This will fortify our store
network action easily as in strengthen our supply chain activity smoothly.

C. Contingency Plans
We must be proactive and react to changes as soon as possible to cope up with the business
environment as nothing really go as planned in business.
If the fundamental target of our business is not accomplished, we must apply alternative plan
which in this case would be to sell the customized furniture to already established business
and serve them as a supplier of furniture. This arrangement will be applied if and only if the
fundamental target of our business is not accomplished. Our target markets can be shifted
during a crisis. For example if we are serving a market who are very well off, the brand name
would come into play and if we lose that brand name due to some catastrophe, we can always
look in the middle to lower income market where brand name is not really required.
In addition, we would be having another arrangement, “Plan C” to offer on the agreement on
that are given by the schools, colleges and universities for making a huge amount of table and
chairs for the students. This business sector has an immense potential on the grounds as there
is a developing number of schools, universities and colleges setting up. What's more
interesting is that the number of students in Bangladesh is likewise expanding. A majority of
schools, colleges and universities now offer tender to purchase a particular measure of tables
and chairs for their students as well as instructors. We believe that this business sector can be

42
productive for us on the off chance that we offer in the agreement offered by those
educational institutions. When we get an offer, we will be making the tables and the seats in
the same configuration that will be picked by the institution’s authority. This option will
fulfill our investors as it is extremely strong based emerging market and level of rivalry in
this area is likewise not up to the level of that of the furniture business.

Financial Plan

A. Assumptions of the financial plans

We assumed that the sales would increase from inbetween 10-20 percent per year. And
although every business try to attain profit in the first year, it is highly unlikely. We have
some flaws and due to the lack of experience and due to the lack of connections and
expertise, we don’t expect any kind of profit in the first year and very little profit in the
second year as well. The third year and onwards is what we expect to be the fruitful years for
the business.

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 B. Pro forma Income Statement (With 5 years annual analysis)

“WOODIES”

Pro Forma Income Statement

Five years

1st 2nd 3rd 4th 5th

year(BDT) year(BDT) year(BDT) year(BDT) year(BDT)

Revenue 20,00,000 25,00,000 30,00,000 40,00,000 45,00,000

(-)Direct cost of sales (5,00,000) (7,00,000) (10,00,000) (12,00,000) (15,00,000)

Gross profit 15,00,000 18,00,000 20,00,000 28,00,000 30,00,000

Expenses:

Payroll 2,50,000 3,50,000 4,00,000 4,00,000 5,00,000

Sales, Marketing and other 50,000 70,000 80,000 90,000 1,00,000
expenses
Utilities 20,000 25,000 30,000 45,000 45,000
Rent 60,000 60,000 60,000 60,000 80,000
Other operating expense 50,000 50,000 50,000 60,000 75,000
Interest expense 70,000 70,000 70,000 70,000 70,000

Total Expense (5,00,000) (6,25,000) (6,90,000) (7,25,000) (8,70,000)

Net Profit 10,00,000 11,75,000 13,10,000 20,75,000 21,30,000

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 C. Cash Flow Projections

“WOODIES”

Pro-Forma Cash Flow statement

For five years

Details 1st 2nd 3rdyear(BD 4th year 5th

year(BDT) year(BDT) T) (BDT) year(BDT)
Cash received

Cash from sales 8,00,000 11,00,000 14,00,000 20,00,000 25,00,000

Cash from receivables 8,00,000 9,00,000 12,00,000 16,50,000 19,00,000

Total cash inflow 16,00,000 20,00,000 26,00,000 36,50,000 44,00,000

Cash outflow for (8,00,000) (7,50,000) (8,00,000) (6,50,000) (7,00,000)

operations

Cash outflow for fixed (7,90,000) (12,00,000) (10,00,000) (10,00,000) (4,50,000)

asset

Total cash flow to 10,000 50,000 8,00,000 20,00,000 32,50,000

business

45
 D. Pro Forma Balance Sheet (5 years annual analysis)

“WOODIES”

Pro-forma Balance Sheet

Five years

1st 2nd 3rd 4th 5th

year(BDT) year(BDT) year(BDT) year(BDT) year(BDT)

Assets:

Current Asset
Cash 10,000 50,000 9,00,000 20,00,000 32,50,000
Accounts Receivable 4,90,000 12,50,000 15,00,000 19,00,000 12,00,000
Inventory 3,50,000 4,00,000 4,50,000 5,00,000 5,50,000
Other current assets 2,00,000 2,50,000 3,00,000 3,50,000 4,00,000

Total current asset 10,50,000 19,50,000 30,50,000 47,50,000 54,00,000

Fixed asset
Long term Asset 16,00,000 20,00,000 25,00,000 30,00,000 35,00,000

Total asset 25,50,000 39,50,000 45,50,000 67,50,000 89,00,000

Liabilities and Equities:

Current liabilities
Accounts payable 2,50,000 7,50,000 10,50,000 14,00,000 21,00,000
Current borrowing 2,00,000 1,50,000 4,00,000 5,00,000 4,00,000
Other current liabilities 1,50,000 2,00,000 2,00,000 3,50,000 5,00,000
Long term liabilities
Long term liability 16,00,000 20,00,000 20,00,000 35,00,000 45,00,000

Equities
Paid up capital 3,50,000 8,50,000 9,00,000 10,00,000 14,00,000

Total Liabilities and 25,50,000 39,50,000 45,50,000 67,50,000 89,00,000

equities

46
 E. Break even analysis:

2000000
1500000
1000000
500000
0
-500000 0 500 1000 1500 2000 2500 3000 3500 4000

-1000000
-1500000

Break Even Analysis Linear (Break Even Analysis)

On the above graph, we can see the break even analysis of “WOODIES” Furniture Company.
Here, X-axis represents the number of units or furniture that we will be selling and the Y-
axis represents the amount of money that we will be generating by selling the furniture or
number of units. If we sell less than 2000 units of products of furniture, than we will be
incurring losses. In order to break even, we need to sell 2000 units of our furniture. At this
point, we will be covering all the expenses that we will incur a considerable amount of profit
to start and run the business. After selling 2000 units of furniture, we can then realize that all
the cost that we will be incurring has been made up. Above the point 2000, we will be
generating profit to run the business smoothly

F. Sources and Application of Funds

Self-investment and financing from Bank in the form of long term loans are very vital for the

start of the business. At the very starting time of our business, each of us will be contributing

BDT70, 000 and will be taking a loan from the bank which is worth of BDT 12, 00,000. So

for the first year our sources of funds will be:

47
 Sources of funds BDT

Investment of owners 3, 50, 000

Bank Loan 16, 00, 000

Later on, we will be taking additional amount of loans from the bank to cope with the
expansion of the business. We have forecasted the Pro-forma balance Sheet where we
showed we will be taking an additional amount of loans from the bank. Besides, we will be
reinvesting the income that we will be generating by running the business. As we have
forecasted that there will be a handsome amount of net profit we will be going to have of our
assumptions gone perfect. From the net profit of the first year which is BDT10, 00,000, we
will be reinvesting BDT 5 00,000 and the rest of the money will be equally divided by us. We
will be following the same method for the next years in order to expand our business and
create a strong business value.

48
 Bibliography
Banijjo, B. (2010, January 25). Furniture Industry of Bangladesh. Retrieved from BD Banijjo:
https://bdbanijjo.wordpress.com/tag/industry-of-bangladesh/

BPlan. (2016, March 10). Retail Furniture Manufacturer Business Plan. Retrieved from BPlan:
http://www.bplans.com/retail_furniture_manufacturer_business_plan/financial_plan_fc.ph
p

Bratkovich, J. H. (1995). A Planning Guide For Small and Medium Wood Products. In J. H. Bratkovich,
Companies: The Keys to Success (p. 77). Minnesota: Northeastern Area State & Private
Forestry.

Business, O. A. (2016, March 10). Small Business Ideas. Retrieved from Opening A Small Business:
http://www.opening-a-small-business.net/small-business-ideas.html

Week, B. (2016, March 10). Small Business News. Retrieved from Business Week:
http://www.businessweek.com/small-business

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