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1, Paribag, Shahbag
Dhaka - 1000
Co-owners:
5. Tania Idris
Phone no. 01911-148170
Nature of Business
This business will provide water transportation services between various locations
in and around Dhaka city using the rivers surrounding the city and the lakes in
Dhanmondi area and in Gulshan-Banani area. Employed service engineers will
manage service and maintenance. The project shall be managed through leasing
system.
Financing
Initial financing requested is a BDT 10,000,000 to be paid off over five years.
This debt will cover manufacturing the lake-trucks, acquiring route permit, employing
service engineers, building waterfront dock / port, conducting feasibility test, and
advertising cost.
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Industry Analysis
A. Future outlook and trends
Given the economic trend of Bangladesh, and particularly the income level of the
majority of the population living in Dhaka, the expenses of both local and private
transportation is increasing day by day along with the rise in the price of most other
commodities. The ever-increasing transportation cost is a challenge to the middle and
lower level income earners and their dependents. In this situation, a transport with
comparatively less fare is certain to attract commuters.
While the roads are getting more and more congested with traffic, and movement is
getting slower due to over crowded roads, utilizing the available water routes within
the city would be the right use of resources and technology.
B. Analysis of competitors
The market this venture is aiming to enter is currently unexploited. Therefore, no
information exists on total industry sales over the previous years. There are currently
no competitors in the market, except for some trawlers carrying passengers from
Gabtali to Sadarghat in a primitive manner. In the city where people are often stressed
under being stuck in traffic jam, an alternative mode of transportation is definitely a
selling idea.
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Description of the venture
Joltori Private Limited, located in Dhaka city, is a company providing water transport
services. It is based on the belief that city dwellers are facing difficulties in reaching their
offices, business center and other destinations in just time. They are killing their time on
buses, cars, and other vehicles as they stuck in heavy traffic jam in the city. It is difficult
for people to maintain schedules. But time is money. So they do not want to loose their
valuable time on the road. Thus the necessity for alternative transport is acute.
In this twenty first century, people need fast, safe and hassle free rides. The main
objective of the venture is to provide better rides for Dhaka city dwellers that are free
from the terrible traffic jam.
The lake and other waterways like rivers and canals will be used for lake truck.
Dhanmondi lake, Gulshan lake, Burigonga, Turag, Sitolokha, Balunodi, etc. will be the
routes.
It will bypass the traffic jam area and save time as well as money. The lake truck ticket
can be purchased earlier at designated places. It will not require the passengers to stand in
a long queue.
The lake truck will carry 100 passengers in the river Burigonga, Turag, Sitolokha and
Balunodi. Another medium size lake truck will carry 50 passengers in the lakes within
the city. There will also be speedboats for emergency needs at a higher fare.
Production Plan
There will be no manufacturing plant under the company's ownership. Lake truck and its
accessories will be manufactured in the local shipyard on subcontract basis. The contract
will be placed through tender schedule process, upon successful review of bidders.
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Operational Plan
The company will take route permit from BIWTA and Dhaka City Corporation. The
Company will appoint a CEO who will report to the Board for all operational duties and
responsibilities. Under the CEO there will be some general managers for Customer
Services division, Purchase and Maintenance division, Finance division, and Marketing
division.
Customer service division includes some departments - Engineering service team, Ticket
department, Customer Care Center (call center), Vigilance Team for quality service
inspection. The Head of customer service will be the operational chief for the day-to-day
operation of the lake truck.
No passenger will be carried beyond the seat capacity of the lake truck. Life jackets must
be available for every passenger in the lake truck. All safety measures will be taken for
safe journey. A reasonable ticket fare will be charged comparing to other transports
system, so that it will be an economy choice for the customers to use the lake truck.
The companies operation will be conducted by some of the most efficient and dedicated
employees to ensure the proper customer service.
First of all, the project will be implemented on a trial basis using one route from Ashulia
to Sadarghat launch terminal, which will have a few stoppages in-between at some
landing stations.
If the first pilot project succeeds, the project will be expanded through introducing Lake
Truck on different routes.
Employees will ensure the uninterruptible transportation system that will save the time by
keeping people from standing on the queue for a long time.
There will be half -month, and one-month traveling packages for regular travelers.
There will be a trouble shooting team to solve the technical problem of the vehicle and
diagnosis all of the water trucks periodically to keep them all in good condition in order
to ensure their longevity.
Once the project become fully operational in and around Dhaka, the service will be
introduced outside Dhaka, preferably in Foy's Lake, Cox’s Bazar, Enani Beach, etc. to
attract tourists for a thrill ride. It will be breaking new grounds, as there is no quality
transportation system available in those tourism zones.
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Marketing plan
A. Pricing
Considering the three important elements of pricing costs, margins or markups, and
competition the fare of ride for every passenger will be BDT 4 per kilometers.
B. Distribution
Joltori Private Limited will distribute its service to the passengers through the following
distribution channels:
Ticket counter
Customers can buy tickets from the ticket counters at lake truck stations.
Internet
A website will be developed which will provide information about schedules of the lake
trucks, and other necessary information customers want to know. Moreover, customers
will be able to book or confirm their tickets through the website.
C. Promotion
Promotion is the way to communicate, inform and persuade customers to demand a
particular service. Promotional plan for Joltori Private Limited includes the following:
Internet
A lake truck fan page will be opened on Facebook to attract and inform the potential
passengers.
Billboards
20 billboards will be placed in major locations, usually crowding areas.
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Banner
500 banners will be used at various street corners and road turns through several phases.
Radio
40 promos, 4 per day through using Radio Foorti.
D. Controls
The effectiveness of the marketing plan will be evaluated based on the following criteria:
Necessary actions
Based on the customer comment and other findings measures will be taken to modify and
upgrade the existing marketing plan.
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Organizational plan
A. Form of ownership
In order to achieve organizational goal effectively and efficiently ownership will be in the
form of partnership. Reasons behind selecting partnership include:
Tax advantages: The profits of a partnership pass through to its owners, who report their
share on their individual tax returns. Therefore, the profits are only taxed once (at the
personal level of its owners) rather than twice, as is the case with corporations, which are
taxed at the corporate level and then again at the personal level when dividends are
distributed to the shareholders.
Flexibility: Because owners of a partnership are usually its managers, especially in the
case of a small business, the company is fairly easy to manage, and decisions can be
made quickly without a lot of bureaucracy. This is not the case with corporations, which
must have shareholders, directors, and officers, all of whom have some degree of
responsibility for making major decisions.
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Acquisition of capital: Partnerships generally have an easier time acquiring capital than
corporations because partners, who apply for loans as individuals, can usually get loans
on better terms. This is because partners guarantee loans with their personal assets as well
as those of the business. Banks also perceive partners to be less of a risk than
corporations, which are only required to pledge the business's assets. In addition, by
forming a limited partnership, the business can attract investors (who will not be actively
involved in its management and who will enjoy limited liability) without having to form a
corporation and sell stock.
B. Identification of partners
C. Authority of principal
Every partner will have equal authority in making decision. In case of conflicting
situation majority will be counted to resolve the issue.
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Management Structure
Chief Executive Officer: John Jonathan Gomes, MBA in Management from DU, is
responsible to oversight all Chief Officers’ execution of strategies taken.
Chief Financial Officer: Kudratullah Mustafa Zaki, MBA in Management from DU, is
responsible to implement the financial strategies and will report to the Chief Executive
Officer.
Chief Customer Service Officer: Md. Shahidul Islam, MBA in Management from DU, is
responsible to implement the financial strategies and will report to the Chief Executive
Officer.
Chief Purchase and Maintenance Officer: Tania Idris, MBA in Management from DU, is
responsible to implement maintenance strategy and will report to the Chief Executive
Officer.
• Establish the mission, goals and policies of the organization, what should be
accomplished.
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• Develop a long-range plan for the organization; defining the strategy and a time
frame for achieving the goals.
• Ensure the long term financial stability and strength of the organization, develop and
maintain sources of income to provide for the continuing operation of the
organization.
• Ensure the long term organizational stability and strength of the organization, bring
into the organization individuals with the necessary abilities to lead and manage the
organization in the future.
• Maintain the integrity, independence and ideals of the organization; do not allow
individuals or organizations to compromise these principles.
• Hire and develop employees to manage the operations of the organization.
• Exercise management oversight of the employees and the operations; approve annual
budgets, review operating and financial results, audit for compliance with internal
policies and external requirements, review performance against goals.
• Perform the functions and work of the board to the best of one’s ability.
• Contribute financially to the organization to the best of one’s ability and seek
financial support from others outside of the organization.
• Recommend others who could serve on the board or be of particular value to the
organization in other capacities.
• Avoid any conflicts of interest and situations that would compromise the principles of
the organization or lead to the perception of compromise.
• Be knowledgeable about the organization, the services it provides and the renal
community in which it operates.
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Assessment of Risk
Lake truck is the totally new concept. For that reason, extra emphasis has to be given to
measure assessment of risk. There have some hazards for this business. Some potential
hazards could be:
A. Weakness of Business
B. New Technologies
The length of the transportation route is very limited so technologies meet thedemand.
Technologies implemented are - non-motorized boats to highly automated pushers,
operating on waterways ranging from small tributaries to lake. Technology is changing
very rapidly. However, more modern technology is difficult to implement in near future.
If competitors come forward new effective technology to attract the customers, the
project will have to adapt and upgrade as per the market trend in the future.
C. Contingency Plan
To identify the alternative strategies to meet business goals and objectives, the venture is
flexible to move from lake to river, and from a limited market to a broader market.
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Financial Plan
Pro-Forma Income (statement)
Projected net profit calculated from projected revenue minus projected costs and
expenses.
COST OF SALES
Beginning inventory BDT350 BDT360 BDT420 BDT435
Plus goods purchased / manufactured 120 165 185 190
Total Goods Available BDT470 BDT525 BDT605 BDT625
Less ending inventory 360 420 435 440
Total Cost of Goods Sold BDT110 BDT105 BDT170 BDT185
OPERATING EXPENSES
Selling
Salaries and wages BDT35 BDT41 BDT46 BDT52
Commissions 12 14 16 18
Advertising 10 12 14 20
Depreciation 14 15 16 16
Other 5 6 6 7
Total Selling Expenses BDT76 BDT88 BDT98 BDT113
General/Administrative
Salaries and wages BDT12 BDT14 BDT16 BDT18
Employee benefits 4 5 5 6
Payroll taxes 2 3 3 4
Insurance 6 6 7 7
Rent 8 8 9 9
Utilities 2 2 2 3
Depreciation & amortization 3 4 4 5
Office supplies 1 1 1 1
Travel & entertainment 3 3 3 4
Postage 1 1 1 2
Equipment maintenance & rental 0 0 1 1
Interest 0 1 1 2
Furniture & equipment 3 4 4 5
Total General/Administrative Expenses BDT45 BDT52 BDT57 BDT67
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Total Operating Expenses BDT121 BDT140 BDT155 BDT180
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Appendix
Survey Result:
A questionnaire was prepared to get the feedback from general people and the
questionnaire was as follows.
Questionnaire:
1. Do you think that the Lake Truck will be helpful to the general people of
Bangladesh?
4. How much fare you would pay to travel from from Ashulia to Sadarghat in Lake
Truck?
The survey was conducted among 86 people regarding the above questionnaire. The
responses are accumulated below:
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