[Business Plan-H&L]

[H&L DOT COM LTD]

[Prepared by: Sazia Afrin Laboni]

Subject Name: Entreprenuership Development

Subjet Code: Bus 2314

Prepared for: Mrs. Shohana Siddique
Lecturer: School of Business
Fareast International University
 H&L Dot Com Ltd
(Business Plan)

2
 H&L Fashions Ltd
(Business Plan)

BUSINESS PLAN

H&L DOT COM LTD

36/6/A, Zohury Mohalla, Shaymoli, Dhaka-1207
18 April 2018

1.1 Executive Summary

H&L DOT COM LTD intends to market fashionable and trendy young customer
based on clothing and electrical products based on online and stores. It would
penetrate the market of the young clothing in the UK based on its intended brand
name and a price differentiation strategy.

MRS SAZIA LABONI is a young and talented entrepreneur teamed up to open up a

young customer based clothing and electrical business in the UK market. I would
like to bring in my ideas, innovations and expertise together into the proposed
venture to be successful. H&L fully understand the core values and principles of
business development and strategy of the business. H&L has completed its
feasibility work and research to see whether there is a gap in the young clothing
business in the UK and found that there is an ample Opportunity in this particular
niche market.

The owner of the H&L believe that they are full of entrepreneurial skills or qualities
such as Focus on goals, Clear Vision, Leadership, Persistence & Passion and other
basic business Skills.

H&L dedicated to introduce new and strong business strategies to attract capital
finance in order to succeed in a very competitive market. H&L intends to start its
operation both Whole sale to the retrailers and online sale direct to the final
consumers through e-marketing (E.G. Amazon, Ebay and company website).

3
 H&L Dot Com Ltd
(Business Plan)

Table of Contents
1.1 EXECUTIVE SUMMARY....................................................................................................................... 2
1.2 VISION STATEMENT............................................................................................................................... 3
1.3 MISSION STATEMENT........................................................................................................................... 4
1.4 THE COMPANY...................................................................................................................................... 4
1.4.1 COMPANY GOALS AND OBJECTIVES.................................................................................................. 4
1.4.2 OWNERSHIP STRUCTURE.................................................................................................................. 4
1.4.3 MANAGEMENT STRUCTURE...............................................................................................................4
1.4.4 MANAGEMENT AND OWNERSHIP BACKGROUND..............................................................................4
1.4.5 ORGANIZATIONAL TIMELINE............................................................................................................ 4
1.4.6 COMPANY ASSETS.............................................................................................................................. 4
2.1 THE PRODUCT....................................................................................................................................... 4
2.2 PRODUCT PATENTS.............................................................................................................................. 5
2.3 FUTURE PRODUCTS............................................................................................................................... 5
3.0 MARKETING PLAN................................................................................................................................. 5
3.1 THE TARGET MARKET.......................................................................................................................... 5
3.2 LOCATION ANALYSIS............................................................................................................................. 5
3.3 PRICING................................................................................................................................................. 5
3.4 ADVERTISING........................................................................................................................................ 5
4.0 COMPETITOR ANALYSIS........................................................................................................................ 5
4.1 THE COMPETITORS............................................................................................................................... 5
4.2 COMPETITOR STRATEGIES.................................................................................................................... 6
4.3 SWOT ANALYSIS.................................................................................................................................. 6
4.3.1 STRENGTHS........................................................................................................................................ 6
4.3.2 WEAKNESSES..................................................................................................................................... 6
4.3.3 OPPORTUNITIES................................................................................................................................ 6
4.3.4 THREATS............................................................................................................................................ 6
5.0 OPERATIONS.......................................................................................................................................... 6
5.1 DAILY OPERATIONS.............................................................................................................................. 6
5.2 OPERATIONAL FACILITIES.................................................................................................................... 7
5.3 STAFFING............................................................................................................................................... 7
5.4 SUPPLIERS............................................................................................................................................. 7
6.0 CAPITAL REQUIREMENTS PLAN........................................................................................................... 7
6.1 CAPITAL REQUIREMENTS..................................................................................................................... 7
6.1 CAPITAL REPAYMENT PLAN................................................................................................................. 7
6.2 SET REVENUE OF H&L BUSINESS......................................................................................................... 8
6.3 FINANCIAL STATEMENTS...................................................................................................................... 9
6.3 List of the short listed suppliers:............................................................................................................. 11

1.2 Vision Statement

To become a popular brand in the UK market of the best quality clothing suppliers in 5-10 years’
time.

4
 H&L Fashions Ltd
(Business Plan)

1.3 Mission Statement

To sell qualitative latest fashions for our loved customers are in the city of London and also
other parts of the UK markets while providing a work environment that respects, rewards and
motivates its employees.

1.4 The Company

1.4.1 Company Goals and Objectives

In the next 5 years the company intends to achieve popularity of our brand in the UK markets
with a wider product offering and also to implement a new ways of marketing campaign. At the
end of the 5 years company anticipating gross sales of £292968.75 with 12.67% net profit after
tax.

1.4.2 Ownership Structure

H&L DOT COM LTD is owned solely by MRS SAZIA AFRIN LABONI who has owned 100% shares of
the company. This business model was selected for tax reasons and because of limited risk of
liability. For the foreseeable future the company will remain its unchanged status.

1.4.3 Management Structure

H&L DOT COM LTD is managed and control by MRS SAZIA AFRIN LABONI

1.4.4 Management and Ownership Background

The owner has chosen Mr Md Ahsan Habib as advisor and personal accountant as he is an
experienced Chartered Certified Accountants and carried a partnership business activity since
2010 as Managing Partner of LG Partnership in Bangladesh. H&L DOT COM LTD is owned by Mrs
Sazia Afrin Laboni who has owned 100% shares of the company and only director.

1.4.5 Organizational Timeline

Remodelling plan for the new business location will be completed in September 2015. Funding
needs to be in place by the end of the August 2015 in order to take advantage of the early
winter season. Renovations will begin in August and will be completed by September 15.

1.4.6 Company Assets

Currently the owner has minimum required amount of money to start up the business.

2.1 The Product

H&L DOT COM LTD.’s product lines include latest design of cloths both for man and woman as
well as many specialty items including belts, vanity bags, wallets and innovative electrical
products namely energy saving bulbs and lighting system, cookeries, mobile accessories sourced
from China.

5
 H&L Dot Com Ltd
(Business Plan)

2.2 Product Patents

H&L DOT COM LTD will hold exclusive rights to use the business name "H&L Direct".

2.3 Future Products

In near future we are planning to import some energy and water saving plants and machineries
from China and South Korea.

3.0 Marketing Plan

3.1 The Target Market

Target market of the H&L DOT COM LTD is the Local whole sellers and distributors in London
and as well as online based customers where we directly sale our products to the end customers
anywhere in the UK and EU.

3.2 Location Analysis

The location for H&L DOT COM LTD is central to the target markets of the East part of the
London. H&L DOT COM LTD also benefits from its location near to a popular shopping mall
Westfield shopping centre, Stratford, London, UK.

3.3 Pricing
H&L DOT COM LTD is planned for average total monthly sales of £8333.33 for the first year of
the business on a gross profit margin of 60 per cent, which is typical across the industry.

3.4 Advertising
H&L DOT COM LTD will use marketing technology through Facebook, eBay, amazon and also
traditional marketing like television and newspaper advertising in order to help grow its
standing in the marketplace.

4.0 Competitor Analysis

4.1 The Competitors

There are some similar wholesaler’s shops near the location where H&L DOT COM LTD is located
but they are not our direct competitors as because we have different target markets and
customers. We are online-based seller and as well as whole seller and we are planning to sell
innovative products for the sophisticated customers according to demands and market trends.

4.2 Competitor Strategies

Three of the competitors operate in a niche market. They are selling more niche products and
they compromised the quality and value. Through the proposed store expansion, H&L will build
a loyal customer base by providing wider product selections, value and innovative quality
products and friendly service. In this service-oriented market H&L will engage all employees in
the process of providing value and cultivating a loyal customer base.

6
 H&L Fashions Ltd
(Business Plan)

4.3 SWOT Analysis

(Strengths/Weaknesses/Opportunities/Threats)

4.3.1 Strengths
Owner and director of H&L business are dedicated to the business and capable to invest the
required amount of money to start up. Other strength is that owner of the business can sourced
and will source all clothing products directly from the family run garments company in
Bangladesh that might help to achieve competitive advantage.

4.3.2 Weaknesses
The weakness of H&L is that company is new in the UK market and don’t have experience
specific to the UK clothing business. All staffs need to be recruited from out of the existing
business channel. If a significant increase in capacity were required in the future, then a change
of location would be required.

4.3.3 Opportunities
Since H&L is planning to enter in to E-marketing strategy through marketing tools in the UK
markets so it will be easy to attract young customers to sell products with a competitive price as
because products will go directly to the ultimate customers so middle management cost will be
saved. Second and important thing is that H&L can supply its products directly from its own
family business in Bangladesh so will help H&L to offer customers quality products with
competitive price.

4.3.4 Threats
H&L DOT COM LTD is at risk from other larger competitors moving into or expanding in the
target market of H&L. H&L must respond to this threat by building a loyalty of the customer
base by providing an excellent value and innovative quality for its customers.

5.0 Operations

5.1 Daily Operations

H&L Fashion Ltd will be open 24/7 and 365 days a year. Daily operations will include keeping the
store stocked with required level of inventory and delivered to the customers. From anywhere
in the world customer can place an order at any time of the day or night.

5.2 Operational Facilities

We will be open 24 hours a day and 365 days a year and our selling staffs will be dedicated to
process the order at any time. We have next day delivery service for the direct customers and
retailers. Customer can pay directly through the company website (World pay) and also if they
prefer they can pay via PayPal account.

5.3 Staffing
H&L Fashion Ltd will be recruited one full-time manager, one full-time order Clark and one part-
time clerks working in various shifts. H&L also will employ one part-time bookkeeper.

7
 H&L Dot Com Ltd
(Business Plan)

5.4 Suppliers

H&L owner has family run clothing factory in Bangladesh therefore it can supply its product
directly from own factory to London. H&L also will supply other products from selected suppliers
from China. Suppliers list are provided in the appendix.

6.0 Capital Requirements Plan

6.1 Capital Requirements

H&L requires £20,000 to start up the business and further £20,000 is to run the business to
certain extend. In addition, H&L requires further £10,000 to cover any additional expenses
where initial demand fails to meet the costs related to increased staffing and inventory. Net
Capital Requirement: £50,000.

6.1 Capital Repayment Plan

All debt obligations related to H&L business will be repaid within five years. Capital contributed
by the owner will be considered 'capital contributions' and will not be repaid but interest on
capital will be paid annually.

6.2 Set revenue of H&L Business

Revenue and PBT

160000.00
150000.00
140000.00
120000.00
120000.00
100000.00
100000.00
80000.00
60000.00
40000.00
9020.00 13650.00
6100.00
20000.00
0.00
2016 2017 2018

REVENUE PBT

8
 H&L Fashions Ltd
(Business Plan)

6.3 Financial Statements

H&L DOT COM LTD

Projected Income Statement
For the year ending the 6th day of April: (UK Pounds)

  2018 2019 2020

Revenues:  
Gross Sales: 100,000.00 120000.00 150000.00
Cost of Goods Sold: 38,000.00 45600.00 57000.00
Gross Profit: 62,000.00 74400.00 93000.00
   
Expenses:  
Sales and Marketing 5,000.00 6000.00 6500.00
Research and Development 3,000.00 2500.00 2500.00
Insurance 3,000.00 3000.00 3000.00
Legal and Professional Services 3,500.00 4200.00 5250.00

Bookkeeping 600.00 720.00 900.00

9
 H&L Dot Com Ltd
(Business Plan)

Rent 8,400.00 10080.00 12600.00

Utilities 1,200.00 1440.00 1800.00
Repairs and Maintenance 900.00 1080.00 1350.00
General Office 1,100.00 1320.00 1650.00
Entertainment 400.00 480.00 600.00
Licenses 300.00 360.00 450.00
Salaries and Benefits 25,000.00 30000.00 37500.00
Bank fees 500.00 600.00 750.00
Interest 2,000.00 2400.00 3000.00
Miscellaneous Expenses 1,000.00 1200.00 1500.00
Total Expenses: 55,900.00 65380.00 79350.00
NET INCOME (Before Tax): 6,100.00 9020.00 13650.00

H&L DOT COM LTD

Projected Balance Sheet
For the year ending the 6th day of April: (UK Pounds)

  2018 2019 2020

ASSETS  
Current Assets:  
Cash and Equivalents 20,000.00 25000.00 30000.00
Marketable Securities 0.00 0.00 0.00
Accounts Receivable 5,000.00 8,000.00 10,000.00
Inventories 10,000.00 15000.00 20000.00
Prepaid Expenses 1000 2000.00 2500.00
Total Current Assets: 36,000.00 50,000.00 62,500.00
   
Fixed Assets:  
Buildings 0.00 0.00 0.00
Equipment 5,000.00 6000.00 7000.00
Office Furnishings and Fixtures 3,300.00 3500.00 4000.00
Computers and Software 6,000.00 7500.00 8000.00
Less: Accumulated Depreciation -1,500.00 -1,500.00 -1,500.00
Total Fixed Assets: 12,800.00 15,500.00 17,500.00
TOTAL ASSETS: £48,800.00 £65,500.00 £80,000.00
   
Liabilities  

10
 H&L Fashions Ltd
(Business Plan)

Current Liabilities:  
Bank Advances 10,000.00 15000.00 20000.00
Accounts Payable 7,500.00 8000.00 9500.00
Dividends Payable 0.00 0.00 0.00
Income Taxes Payable 1,220.00 1804.00 2730.00
Deferred Income Taxes 0.00 0.00 0.00
Total Current Liabilities: 18,720.00 24,804.00 32,230.00
   
OWNERS' EQUITY  
Contributed Capital 20,000.00 25000.00 30000.00
Additional Capital 5,200.00 8480.00 6850.00
Retained Earnings 4,880.00 7216.00 10920.00
Total Owners' Equity: 30,080.00 40,696.00 47,770.00
TOTAL LIABILITIES & EQUITY: £48,800.00 £65,500.00 £80,000.00

6.3 List of the short listed suppliers:

Clothing Suppliers:

1. MARINA APPARELS LTD.

Contact Person: Nafis Sikder, M.D.
Address: House # 2/B, Road # 29 Gulshan-1, Dhaka-1212
Tel(Office): 02-9892259, 02-8852646
Fax(Office): 02-8850330, 02-8852748
Product: Jackets, T-Shirts, Pants
Website: www.palmalgarments.com

2. MAY FASHION LTD.

Contact Person: Md. Shahadat Hussain, M.D.
Address: B-61, Malibagh Chowdhury Para, D.I.T. Road Malibagh, Dhaka-1217
Tel(Office): 02-9351524, 02-9332876
Fax(Office): 02-8314166
Product: Shirts, Ladies Blouse, Jackets
Website: www.voyagergroup-bd.com

3. R.R. SWEATERS LTD.

Contact Person: Md. Masud Malik, M.D.
Address: 205, Senpara Parbota, Begum Rokeya Sarani Mirpur, Dhaka-1216
Tel(Office): 02-9006226, 02-9014569
Fax(Office): 02-9010825
Product: Sweaters, Pullovers, Cardigans
Website: www.rrsweaters.net

11
 H&L Dot Com Ltd
(Business Plan)

4. C & A FASHION LTD.

Contact Person: Md. Morshed, M.D.
Address: 590, Colonel Jones Road, North Kattali,Pahartali, Chittagong
Tel(Office): 031-750238, 018-311628
Fax(Office): 031-750239
Product: Ladies Shirts, Jackets, Knit Tops
Website: www.cnafashion.com

Electrical suppliers:

1. Pioneer Home Appliance Co., Ltd

Tel:  +86-757 28802266
 Fax: +86-757 28371501
Cell: +86-13727390796
Skype: ritali12
 Add:  No.8,Keyuan road 3,Hi-tech industrial zone, Gaoli area,Ronggui,Shunde,  Foshan
city,   Guangdong province, China
 E-mail:  rita@pioneer-home.com
 Website: http://www.pioneer-home.com

2.Sunsky-online.com
Address: 27P, B Block, Windows Building, Huangqiang North Road, Futian District,
Shenzhen, Guangdong, China (518031)
Tel:  (86 755) 61302093  Ext : 806
Fax:  (86 755) 61302090
Homepage Address: http://www.globalsources.com/sunsky.co
Other Homepage Address: www.sunsky-online.com

3.Zhongshan Qinfa Lighting Factory

Telephone: 86-760-87561929
Local Time: 07:43 Fri Jul 10
Mobile:86-15099897881
Fax:86-760-22328697
Zip Code:528421
Address:No. 530 Dong'anbei Road, Haizhou, Guzhen Town, Zhongshan, Guangdong,
China
Showroom:http://qinfalighting.en.made-in-china.com

12
H&L Fashions Ltd
(Business Plan)

13