Furnitech PDF

SUBMITTED TO:
SHABNIN RAHMAN SHORNA
LECTURER
NORTH SOUTH UNIVERSITY
SUBMITTED BY: GROUP-‐5

MD. MEHEDI HASAN
NSU ID: 133 1100 030
ZAHID HASAN HIMAL
NSU ID: 152 1084 031
MOHAMMAD TASVIR HOSSAIN
NSU ID: 153 0239 630
MD. RONY AHMED
NSU ID: 152 1078 631
FAHMINA AHMED
NSU ID: 141 0873 630

Acknowledgement
This report would have been impossible without the valuable contributions and
limitless help of several individuals. Our first acknowledge goes to Almighty Allah
for giving us the patience and courage to finish the task within its deadline. Then,
we cordially thank our respected course instructor, Miss Shabnin Rahman Shorna,
who has encouraged us and allowed us to work on such an interesting subject.
Without her guidance and support it would have been nearly impossible for us to
complete this business plan.
We would also like to express gratitude towards our friends and classmates for
their friendly and cordial cooperation and suggestion during the business plan.
They have generously supplied insightful comments, helpful suggestions, and
contributions all of which have progressively enhanced this report.
Letter of Transmittal
15-04-2019
Shabnin Rahman Shorna
Lecturer,
Dept. of Management
School of Business and Economics
North South University
Subject: Report on “FURNITECH” furniture business plan.
Dear Ma’am,
It is indeed a great pleasure for us to be able to hand over the result of our hardship, the project
on this startup. This report is the result of the knowledge that has acquired from the respective
course MGT368. We tried our level best for preparing this report. The information of this report
is mainly based on the data collected from different websites and short field survey. All of us
gave our best for making this report come together. We hope that you will find this plan worth
reading. Please feel free to contact us for any query or clarification that you would like us to
explain. Hope you will appreciate our hard work and excuse the minor errors. Thanking you
for your cooperation and giving us so much knowledge, affection while taking the respective
course.
Sincerely,
1. Md. Mehedi Hasan ______________________

2. Md. Rony Ahmed_______________________
3. Mohammad Tasvir Hossain_______________
4. Zahid Hasan Himal______________________
5. Fahmina Ahmed________________________
Table of Contents
EXECUTIVE SUMMARY ........................................................................................................................... 1
INTRODUCTION ..................................................................................................................................... 2
Name And Address Of The Business .............................................................................................. 3
Name and addresses of the principals ................................................................................................ 3
Nature Of The Business ................................................................................................................... 4
Statement Of The Financial Need ................................................................................................... 4
Statement Of The Confidentiality Of The Report ......................................................................... 4
BUSINESS MODEL .................................................................................................................................. 8
Business Model Canvas .................................................................................................................... 8
Pricing ............................................................................................................................................. 11
Social Goal ...................................................................................................................................... 12
ENVIRONMENTAL ANALYSIS ............................................................................................................... 12
Porter’s Five Forces ....................................................................................................................... 12
SWOT ANALYSIS ......................................................................................................................... 13
Pestel Analysis ................................................................................................................................ 15
Stakeholder Analysis ...................................................................................................................... 17
DESCRIPTION OF THE VENTURE .......................................................................................................... 18
Operational plan .................................................................................................................................. 22
Description Of Company Operations ........................................................................................... 22
Initial Flow Of Order Of Goods .................................................................................................... 22
Future flow of order of goods .......................................................................................................... 23
MARKETING PLAN ............................................................................................................................... 23
Product ............................................................................................................................................ 23
Pricing ............................................................................................................................................. 24
Place ................................................................................................................................................. 24
Promotion ....................................................................................................................................... 24
Packaging ........................................................................................................................................ 25
Positioning ....................................................................................................................................... 25
People .............................................................................................................................................. 25
ORGANIZATIONAL PLAN ...................................................................................................................... 25
Forms Of Ownership: .................................................................................................................... 25
Identification Of Partners: ............................................................................................................ 25
Terms of agreement: ...................................................................................................................... 26
Authority Of Principles ................................................................................................................. 26
Management Team Background ................................................................................................... 26
Technology Utilization ................................................................................................................... 28
ASSESSMENT RISK ............................................................................................................................... 29
Evaluation Of The Weakness Of The Business ............................................................................ 29
New Technology ............................................................................................................................. 29
Contingency Plan ........................................................................................................................... 30
FINANCIAL PLAN .................................................................................................................................. 31
Important Assumption ................................................................................................................... 31
Financing needed ............................................................................................................................ 31
Financing Source ............................................................................................................................ 32
Income Statement ........................................................................................................................... 33
Balance Sheet .................................................................................................................................. 34
Cash Flow ........................................................................................................................................ 36
Ratios: ............................................................................................................................................. 38
Break-Even: .................................................................................................................................... 38
Appendix .............................................................................................................................................. 40

EXECUTIVE SUMMARY
This report is consisted of a business plan of a furniture store, named FURNITECH. This
business is being generated by 2 last semester students and 3 recent graduates of North
South University. Not to mention, this is not a usual store which is seen in the market. This
furniture is technology based, hence the name FURNITECH. If we get to implement this
business idea, we will be the first one in Bangladesh to implement this kind of business. If
we talk about our product lines, these are smart table, reading table, student chair, computer
table, book shelf and so on. We collected important data such as industry size, market
players, market size, legal issue, equipment needed and so on. To analyze the situation of
our business plan, we have used various measuring tools. Few of the tools are business
canvas model, swot analysis, pestel analysis, stakeholder analysis and so on. The business
plan also includes various planning techniques, starting from production plan, operational
plan, marketing plan, financial plan and so on. The whole process of it is explained in the
report in a detailed manner. After all of this collection of data, analysis procedures, and
planning techniques we plan to implement our business plan. This might not be an easy
catch for us, but we as a team believe we will make it happen as our business plan is strong
enough.
1 | P a g e

INTRODUCTION
Furniture industry is one of the growing industry in Bangladesh. It has started before 90s as a
small scale cottage industry. But after mid 90s this industry eventually transferred into full
furniture industry. Domestic furniture industry is growing at a healthy rate of 19%. After
meeting the demand of local people, this industry is exporting in different country for their
quality products. Currently, this industry is contributing 0.29% on our total GDP. More than
20 lakh people are working in this sector. Hatil, Partex and Otobi are the market player in this
industry now. The govt. has announced to give 15% cash incentives on exports. But the tariff
rate of importing processed wood is 92% which is making the price higher. In our country the
70% of total furniture production is home furniture and rest 30% is office furniture. The labor
cost is hourly USD 0.06-0.40. This is way lower than other country.
Furniture is one of the must needed things in our life. We need furniture every day. From home
to office to shopping mall and almost everywhere we need furniture. Though the furniture
industry in Bangladesh is growing very fast, there are some lacking in this sector. We are yet
making all the traditional furniture. But, young corporates and some other people want
something new in their life style product. Here, we are introducing a new brand in the furniture
industry named “FURNI-TECH”. The furniture of this brand will be different from other
traditional furniture. This furniture will have touch of technology and their multi tusking
characteristics will make them unique from traditional furniture. This company will make both
home and office furniture. As the technology is growing very fast we are gradually very much
relying on technology. We need to use technology at any time at anywhere. So, we need to
charge our devices and lots of other things. To keep it in mind FURNITECH is introducing
this new type of furniture.
2 | P a g e

Name And Address Of The Business

Name: FURNITECH.
Address: 31 Mohakhali, Suite 8, 2nd Floor, Colombia Super Market, Banani, Dhaka 1213.
Name and addresses of the principals

Name Designation Address
Mehedi Hasan Swapnil (Co-Founder & CEO) - BBA, House# 330T, Road# 15/A,
Finance at North South Block #A, Bashundhara R/A,
University Dhaka Bangladesh.
Email :
mdmh.info@gmail.com
Phone: 01712985817.
Fahmina Ahmed (Co- Founder & Head of House# 32, Road # 2, Block#
Supply chain management & C, Bonosree, Dhaka
logistics) – BBA, Marketing at Bangladesh, Dhaka,
North South University Bangladesh.
Phone: 01688113276.
Email:
Mohammad Tasvir Hossain (Head of Marketing & House# 28, Road# 5, Block
customer relations) – BBA, #A, Baridhara DOHS, Dhaka,
Marketing at North South Bangladesh.
University Email:
Md. Rony Ahmed (Director of operations) – House# 498, Abdul Sadek

BBA, Marketing at North road, Block # F, Bashundhara
South University R/A, Dhaka, Bangladesh.
Email:
rony95888@gmail.com
Phone: 0193977866
3 | P a g e

Zahid Hasan Himal (Chief Financial officer) – House# 37 , R0ad#3 , Block#
BBA, Marketing & Finance at D,
North South University. Bashundhara R/A , Dhaka
Bangladesh
Nature Of The Business

The nature of this business is furniture production. We will produce smart furniture for both
home and offices. The furniture will be different from other traditional furniture. These
furniture’s will have touch of technology. We will give charging point in the table. The bed
and table will have multitasking attributes. For example, the table will be integrated with
personal assistant which will works as Google assistant and amazon eco. We will provide
Table, chair, bed and others essential furniture.
Statement Of The Financial Need

Financing is a big part of any business. As, we all are students and it is a startup, finance is a
big issue. For the initial investment we are providing our own money and taking loans from
bank. We all are getting money from our parents as the initial investment. There are very less
venture capitalist in our country. No one want to invest in venture. Rater they are interested to
give loan in terms of interest. So, at the initial stage we are taking money as loan. So, we have
estimated a budget to make a small office to do the official work. Building website, store room,
raw materials, equipment’s and other things need to be purchase and set up to start business.
There are also some legal issues for starting a business. There will have also some fees for
completing the legal procedure of the business. Salary cost of employee promotional expense
and other expense will incur some cost for our company where we need the finance.
Statement Of The Confidentiality Of The Report

This is a very new business concept in our country. None of people have started this business
before us. Only the partners of this business currently knows the ides. If we want to sustain in
the market we have to keep our idea within us. We have to give highest priority not to disclose
our ideas to the outside people. If other people knows the idea competitor will start coming to
the business. Competitor can make this hard for us. If any of the partner disclose any idea about
4 | P a g e

business without permission legal action will be taken against him/her. So, it is for the
betterment of our business we will not disclose any information of our business without the
permission of all the partners.
Signature of agreement,
I, ----------------------------------------------------------------------------------------------------- have
read the above business
Confidential agreements and understands the terms and conditions and responsibility as a
partner.
Signature of the partner
________________
_______ Date
I, ----------------------------------------------------------------------------------------------------- have
partner.
________________
_______ Date
5 | P a g e

I, ----------------------------------------------------------------------------------------------------- have
partner.
________________
_______ Date
I, ----------------------------------------------------------------------------------------------------- have
partner.
________________
_______ Date
6 | P a g e

I, ----------------------------------------------------------------------------------------------------- have
partner.
________________
_______ Date
I, ----------------------------------------------------------------------------------------------------- have
partner.
________________
_______ Date
7 | P a g e

BUSINESS MODEL
Business Model Canvas

Key partners: Key Value proposition: Customer Customer segment
activities: relationship
We mainly will follow 2
1. Melamine 1.Technologically
Manufacturing types of segmentation:
board supplier. integrated furniture 1. Automated
furniture and
communication Demographic
2.Tech company selling into the 2.Space saving design
for reach grab segmentation –
market.
3.Third party 3.Multipurpose & new customer
Age: 18-35
distributor minimalistic use and general
news. Gender: Male & Female
4.Banks for EMI 4.User friendly and
policy convenient design 2. Personal Social class: upper middle
communication class to higher class
5. Opportunity to give
for loyal
consumers own design Occupation: Mostly young
customers.
via website which will corporates & students.
make the product
Geographic segmentation:
unique.
Major division of
Bangladesh (Dhaka,
Chittagong and Sylhet)
Major cities like

Narayongonj,
coxbazar(for B2B
Key Channels:
resources:
1.Wood 1. Exclusive
store at Dhaka.
2.Melamine
2. Web base
board
service.
3.Skilled labor
8 | P a g e

4.Automated 3. Partnership
machineries with local
brands.
Cost structure Revenue

1.Raw materials stream
cost
Transactional
2.Manufacturing
revenue stream
cost
from end
3.Delivery cost customers.
4.Marketing cost
5.Human
recourse cost
Key Partners:
They are one of the most important part of any business. Without having a strong key partner
base it is hard to sustain in the business. Here the key partners of our business are melamine
board supplier. As we will make furniture we will be needing lots of melamine board. It is
important to keep good relationships with the melamine board supplier and also with the other
supplier of us. Good relationship with the supplier can help to get good quality of raw materials
at reasonable price. Different tech companies, third party distributors are also the important
partners of our business.
Key Activities:
As we are manufacturing based company our main activity will be producing and selling
furniture.
9 | P a g e

Value Proposition:
FURNITECH the company has come up with some unique value proposition. It will have
technology integrated furniture. There will have technological features in our table chair or
even in bed. The table will have device charging features. The space saving features of this
furniture will make them different from traditional furniture. It will efficiently save the space
of home. The family who do not have enough space for keeping things it will be very much fit
for them. This furniture will be multi-functional. For example, in bed there will have drawer,
where you can keep lots of things. Most importantly we are making it user friendly. People
will love the product and designs. They can use these furniture comfortably. We are also
providing the opportunity of customize the furniture according to their needs. Through our
website customer can customize their product and we will deliver them according to their
needs.
Customer Relationship
Good relationships with the customers helps a business to grow. If customer are loyal to you
their will bring new customers for you. They will also buy things from you. For general
customers and to grab new customers we will send automated message through mobile. For
the regular and our loyal customers we will do the person communication. Because they are
the asset of any company. They will also get the special offer.
Segmentation
We will be segmented the customer based on two things. We have used the demographic and
geographic segmentation. We have targeted the young people aged 18-35 and the occupation
are mostly young corporate and students. Based on geography we have initially targeted the
people Dhaka city. Other than that, we have targeted the people of few major city like
Narayanganj, cox’s bazar etc.
Key Resources
Key resources of our business are wood, melamine board, skilled labor and other automated
machineries. As we making furniture wood is the most important things that we need. We also
need melamine board as we are also making furniture out of melamine board. Then we need
skilled for to make furniture from the wood. After that we need the automated machineries. As
we are making smart furniture we will need some advanced level machines.
10 | P a g e

Channel
For selling our furniture we will follow three types of channel. Exclusive store in Dhaka. As
our product is not very low prices, the people of all class will not be able to buy our product.
So we will keep one store in per are of Dhaka. But after few years we will spread it in different
area according to demand. We will also use our website as a channel of distribution.
Cost Structure
There are few main costs for any production company. For our company the cost will start
from buying raw materials. Raw materials are the most important things and we need to buy it
from suppliers. Cost of manufacturing is the second big cost for our furniture. The cost of
delivery of product will be the next cost generating element. As we are very new company in
the market we need to do our marketing widely. We need to know people about our product.
So here we have estimated a big cost in our marketing purpose. The human resource cost is
also a major part of this business. Other than that there are also some small cost that will incur.
Revenue Stream:
The revenue will come from the transactions of end customer. We will sell product for the end
user and we are also selling through our exclusive shop and website. So, the revenue will come
from the selling of furniture to the end customers.
Pricing
We are targeting the young corporates students and other higher middle class to higher class
people. So the price is bit more than other regular brand. We have considered Hatil, Otobi
Partex as our competitor. After calculating the cost we have set the price of the furniture. But
at the beginning we will not produce the premium product. We will produce middle range
quality product. After getting some fixed customer we will produce as far our premium product.
Here is the pricing of our product at initial stage:
1. Reading Table- 10,000 Tk.

2. Bed - 40000Tk- 80000Tk.
3. Chair - 10000Tk.
4. Bed side Table- 7000 Tk.
11 | P a g e

Social Goal
The purpose of every business is to make profit anyhow. We are also doing business for earning
profit. But, we have some social goal behind doing this business.
• Waste management. We will do proper waste management of our production plan. So

that environment do not get harm by us.
• Increasing efficiency of the people. As we are providing smart furniture, people can
charge their device without going somewhere else of room. Lots of other attributes will
make the user efficient in his work.
• Providing them a smart life style product which can bring impact on his/her life.
• We will provide csr to the society.
ENVIRONMENTAL ANALYSIS
Porter’s Five Forces

Threats of New Entrants
Enter into this industry is not that mush tough as government haven’t any tough
restriction about it. But as there is enough substitute companies so many will be
discouraged. By our uniqueness and service, we will fight the threats.
Bargaining Power of Buyers
As we are the only company who making furniture like this so burggaing power of buyer
is low. There is no alternative for the buyers so they will have less power to bargain. And
we are expecting there will be high demand for our product so we will have a higher power
to execute.
Bargaining Power the Supplier
Our main supplies is the woods and other parts to build the furniture. In Bangladesh market
there are a lots of substitute according to this supplies. And for the technological product
we will import them from china and our own research and development team will work on
it. So, suppliers have less power to bargain.
12 | P a g e

Threat of Substitute
Our product is completely new in the market. So there is no alternative of our product but
traditional furniture is the substitute. But as people of our country are moving fast and their
demand id changing rapidly so we are expecting the substitute can’t have a good effect on
us.
Competitive Rivalry
Initially we do not have any direct competitor. People used to buy furniture from
Hatil, Otobi. Navana, Partex etc. they are our indirect competitor. But currently
they are just selling traditional furniture where we are providing high-tech
furniture with the minimalistic design and high functionality. So our rivals are leg
behind there.
SWOT ANALYSIS
SWOT analysis can be explained as a strategy, or study done by different kind of organizations
to identify the strengths, weakness, opportunities and threats. This helps the decision makers
in the organization in analysis process.
Strengths
1. Creative workers – As our product needs highly complicated, we would surely need
creative workers. These workers can learn very fast, and implement even faster. We
need loyalty from these workers, not sharing any of the ideas outside. We firmly
believe, our employees are our key to success.
13 | P a g e

2. Training methods - Again for the nature of our business, training is much needed for
employees. We plan to provide off the job training pretty often. Various kinds of ideas,
demonstrations, working methods will be shown in the training period. Once the worker
is fit enough, he can go for the actual work.
3. Only electronic based furniture in the nation – This is surely one of our strength. We
have to pursue all the opportunities in the market in order to make our strength even
stronger.
Weakness
1. High cost of capital – Our business will require high cost of capital as it is a very unique
business in the Bangladesh market. Being a student of the final year, we don’t have
much money. We plan to gather this from our parents, taking loans and spent our
savings on it.
2. Training cost – Training cost can be very high. But we believe, if the worker gets use
to with it, we will make maximize profit. To reduce the training cost we will take
various steps.
3. Low marketing, finance, operation skills – As we are new to the business, we don’t
have much experience regarding the whole business environment. We still believe, we
will be successful as we don’t have any competitors in the country.
Opportunities
1. Increased GDP growth rate- If we see in the recent years (2015-2019), the GDP growth
rate of Bangladesh is growing at an increasing rate. This maybe an opportunity for us
because our product is a high involvement product. As the GDP increases, the spending
ability is increasing as well, leading us to a favorable outcome.
2. No competitors – As our product is extremely new in the country, we can make set the
demand of the product well. Once the demand is high, we can high profit. There is a
high possibility we can enjoy the terms of being a monopoly market as well.
14 | P a g e

3. Word of mouth- We believe word of mouth could be our biggest marketing strategy. In
Bangladesh, consumer usually purchases a good when there is a constant repetition of
word of mouth. So, we think if our market strategies are strong enough, there will be
active word of mouth in the market.
Threats
1. Presence of the other competitors - There’s always a threat of other companies entering
into the market with better ideas. If our customers buy products from the other
companies that entered the firm, we will definitely go through losses.
2. Set up cost - If we think our product compared to the furniture stores, our set up cost is
very high. It is not based on other usual furniture, implementing it may be challenging,
but we will make our dream project happen.
3. Changing of the economic conditions - Any kind of economic conditions such as
inflation, unemployment, economic growth, business policies can have immense
impact on our business. These threats can reduce our profitability as well.
Pestel Analysis
Pestel analysis is an analysis tool used to identify the macro-environmental factors. There are
basically 6 considerations under this analysis, these are political, economic, social,
technological, environmental and legal.
15 | P a g e

Political
There are a lot of political factors, starting from government policy, tax policy, labor rule
policy, trade policy, environmental law policy and so on.
If we talk about Bangladeshi political condition, it’s pretty random. At times, it is in a stable
condition, at times it is in an unstable condition. If we talk about the present situation, it is
pretty stable. We are hoping for good political situation as well. Unstable political situation
will have an immense impact on our business and our profitability as well.
Economical
Economical factor lies on various sub-factors, which includes inflation rate, unemployment
rate, GDP growth rate, fiscal and monetary policies, exchange rate and so on.
This different kind of sub-factors will affect our business in various kinds of ways. If we look
at the economic situation of Bangladesh in the last 5 to 10 years, it is in a very stable condition.
If the condition stays the same in the future, we can say we are in a safe position
Social
This factor involves various sub-factors as well. Starting from demographics of the target
markets, cultural aspects of the target markets, habit of the customers all falls under this
category.
As the university students and the young corporates are our target market, we are hopeful our
business will be a success as they are the most hyped up customers in the market. In
Bangladeshi culture, word of mouth is very high. We think this word of mouth will get us to a
long way.
Technological
This factor tells us how tech-savvy customers are in Bangladesh. If we compare Bangladesh
with the rest of the world, we lack behind in terms of technology. Not to be ignored, customers
of our country are getting involved with technology related products. Uber, Pathao, Foodpanda
can be the biggest example of it.
16 | P a g e

Environmental
We will make sure our business does not affect the environment in any way possible. As a
new business, if we don’t act environmentally responsibly there is a huge chance that we might
loose our customer base. We don’t plan to dump any waste material in a open free place, we
want to act socially responsibly.
Legal
Legal factors involve many things including government laws, equal opportunity for all
workers, business laws, product safety policy, misleading marketing and so on. We as a
business want to follow each of the terms very properly as this will be a matter of goodwill in
the business.
Stakeholder Analysis
High power, highly interested people
Customers: They are the core stakeholder of our business growth and profit.
Partners: Our key partners are the second most important stakeholder because they
will provide us the financing needed and we will use those for running our
operation.
High Power, less interested people
Debtors: We are financing from the debtors or banks, they have high power
because we have to pay interest. But they will less concern our business.
Distributors: as we will produce measly so a good relation with distributors have

to maintain. This is for both of our raw material suppliers and distribution channel
members. They don’t have that much interest on our business but our business can
get highly influenced by them.
Low power, highly interested people
Employees: Employees are also our important stakeholder. They will help us to
generate revenue. They have low power but they are highly interested.
17 | P a g e

Low power, less interested people
Government: Government is another stakeholder. To run our business, we must

have a permission from the government. Government is low power in a sense of
they already provided a standardize law according to the industry. So until any
further change they are low powered and less interested.
DESCRIPTION OF THE VENTURE
The business we choose to do is a furniture business. But this will not be like the regular
furniture we use or buy from local store. From the beginning of human civilization furniture
has become the part of our life and it has a significant impact on our daily life. Furniture makes
our day to day activities more convenient and at the same time it represents the taste & social
class of an individual. With time furniture changed a lot in terms of use, design, lifestyle, taste
and size of our home. Choices of material of furniture has also changed. In today’s world, the
furniture need to be made with the consideration of the space, aesthetic and types of use.
Technology can be integrated with furniture as well. So, our sole business plan is going to
make furniture keeping in mind that it has to be space saving, minimalistic, multipurpose and
technology based which will make our day to day life more convenient. For example, a
corporate job holder spent most of his day time sitting in the desk so, it need to be more
technologically advanced. What if the desk he uses can charge his laptop and smartphones at
the same time it works as an assistant which will follow the command, notify him about the
work schedule, emails, weather, turn off/on the ac or light and what not. He will be even able
to control his devices connected to the furniture from anywhere in the world using internet
given that the furniture is connected to the Wi-Fi network. In a single word, He will be able do
all of his tasks without even leaving the desk and when he is not around.
Mission Of FURNITECH
The mission of FURNITECH is to provide you with the best selection of smart furniture along
with the best customer service possible in the market.
18 | P a g e

Vision Of FURNITECH
Our vision of FURNITECH is to create a better everyday life by combining technology within
functional furniture and become the leading smart furniture company in the country that
transfers the preferences of the people towards smart furniture from traditional furniture. as
well as within 5 years we want to achieve the standard to export worldwide.
Reasons For Going Into Business

Life is becoming easy with the touch of technology. We see everything is becoming tech
oriented like transportation, communication, shopping but the most used thing furniture have
not changed that much where the consumer is becoming tech savvy rapidly. At present in
Bangladesh larger portion of population is young aged and they are mostly dependent on smart
gadgets. So, we are expecting a higher customer base. In this sector market gap and customer
segment both are ready which is crucial for any business. So, we came up with this innovative
idea which will change the furniture industry from how we look furniture now.
FURNITECH will provide its customer with the long range of furniture we use in our day to
day life both home and office environment. But for several first year of its production it will
mainly focus on selected items rather going on vast range of items. The furniture that
FURNITECH will be providing its customers are following
Smart Table (office),

Smart Swiveling Chair (office)
Reading Table
Student Chair
Computer Table
Smart Table Lamp
Book Shelf
Smart Bed
Bed-side Table
Sofa Set

19 | P a g e

Reasons That Will Make Our Venture Successful
As we are the first mover in the smart furniture business that will integrate technology with
traditional furniture and beyond. That will be an advantage in terms of profits and market share.
We will be able to gain a brand recognition by delivering better quality product and reliable
services. Which will eventually help us to gain the brand recognition. Besides, new innovative
ideas and collaboration of smart technologies will make our product standout from the
conventional one. It will be one of kind because of its uniqueness which can’t be copied
Development Work Has Been Done Completed To Date
So far, for our business we have conducted some research based on the preference of the people
and demand. At our initial stage, we will focus on selected items rather going on vast range of
items. After observing the actual demand, preference of the customer regarding the design,
price, taste we will go for production of larger selection of furniture. We have conducted
interview with some local furniture maker and businessman for basic information like peoples
demand of smart furniture and how they see the future of the furniture. Most of them gave us
positive feedback and assured that with the increasing young furniture buyer there is a market
for smart furniture and it will grow exponentially over time.
Office Equipment
Initial level we will need a small office to operate the business. The major equipment we will
need are server computer, computer, fridge, air condition, office furniture, designing tools etc.
Location Of The Business

Though at first the exclusive store of FURNITECH will be leased and located in the center of
Dhaka, but through online (websites and facebook) and telephone people all over Bangladesh
will be able to buy our furniture. FURNITECH will also make partnership with the local brands
to reach all over the country in the future.
20 | P a g e

PRODUCTION PLAN
21 | P a g e

Most of our furniture will be wood, processed wood, plywood, plain particle board, melamine
particle board, veneered board based, in first several years which will be provided by some
renown distributors in Bangladesh such as Akij Particle Board Mills Ltd, Star Particle Board
Ltd. Partex Star Group, Super Board. But we have a plan for vertical integration in the future
so that we can produce our own materials which will be according to our quality standard.
There are other materials like formica & ebonite, edging tape, screws, adhesive glue, drawer
knobs and handles, drawer slider, european-style hinges, tempered glass etc will be needed. In
terms of cutting the particle board/wood we will be needing cutting machine, designing tools,
measuring devices, polishing tools and other tools which are included in the fixed cost in the
financial section. Designing and planning process will be conducted in our corporate office and
main manufacturing will be in our manufacturing plant. From where the product will go to our
exclusive store and direct delivery to the customer purchased or ordered online. In the next
page the product cycle is described in a flow chart
Operational plan
Description Of Company Operations - Our goods will be manufactured at the production
plant, then the goods will be kept to warehouses. From the warehouses, the product will go to
consumers depending on the orders.
Initial Flow Of Order Of Goods

Receive order Passes the order to Work in progress, Warehouse receives
through website or the production probably 7 days the good
social media plant
Consumers receives
the good
Being a startup business, for few months we will operate only online. So, this will be the initial
flow order of goods. In the near future, we plan to open out physical store to attract more
customers.
22 | P a g e

Future Flow Of Order Of Goods
Consumer
purchases the good
Receive order in

the physical store
The order is passed Work in progress, Warehouse receives
to the production probably 7 days the good
plant
Consumers receives
the good
This will be our future plan for flow of order of goods.
MARKETING PLAN
Product
Furni-Tech produces smart furniture, where furniture is added with technology. Some samples
of our product quality are shown below.
23 | P a g e

Pricing
For the pricing of our goods, we will follow two kinds of pricing. These are cost plus pricing
and price skimming. If we talk about cost plus pricing, a certain amount of percentage is added
to the cost goods and services to form the selling price. The costs include direct material cost,
direct labor cost, and overhead costs. On the other hand, price skimming is charging high initial
pricing when the product is first at the market and then lowering the price as time passes by.
Place
As our product is an expensive and a very new product, it will be have few outlets only. We
will have our outlets in the selected areas only. In Dhaka, we will have 3 outlets, the outlets
will be located at Gulshan, Banani and Dhanmondi. One outlet will be opened in Chittagong
and another one in Sylhet.
Promotion
We will promote our products in several ways. Starting from TVC, social media marketing,
mobile marketing, billboards, leaflets we will follow everything. However, our eyes will be
much more in social media, as our target market uses social media always.
24 | P a g e

Packaging
The way we will package our goods after the consumer purchase will be pretty normal. Being
different from the other competitors, extra protection will be provided in terms of packaging
as it is a electronic furniture. Good quality materials will be added in packaging.
Positioning
The main positioning of our company is we are the first Bangladeshi producer who is producing
electronic furniture. Our tagline “ live smarter” will be our positioning. We will give birth to a
new saying “smart furniture” in Bangladesh.
People
Since we are a start up business, we will have 4 departments with 2-3 managers under it, and
few employees who will be working in the warehouse. The departments are marketing, supply
chain management, finance and operations. If we see a positive demand in the market of our
goods and services, we will increase the workforce capacity.
ORGANIZATIONAL PLAN

Forms Of Ownership:
The Furni-tech business will be of five partners. The partners will share the same amount of
money, which is the 20% of the total capital. If we get good response from our customers
regarding our products, we will let investors to invest in our company.
Identification Of Partners:
The name of our partners who came up with this unique idea of Furni - Tech are
6. Mehedi Hasan Swapnil

7. Md. Rony Ahmed
8. Mohammad Tasvir Hossain
9. Zahid Hasan Himal
10. Fahmina Ahmed
25 | P a g e

Terms of agreement:
1. The partners of the business have to share equivalent amount of money.

2. Despite the profit or losses earned, it has to be shared equally.
3. The 1st year’s profit cannot be taken for personal use, rather it will be added to the
business for future development and innovations.
4. If one of the partners die in the partnership process, partnership act 1932 will be followed
always.
5. No partners talk ill about their partners to others, whatever the case is.
Authority Of Principles
This means when people interact with other, who are assigned to a position of authority. In our
business which is called Furni-Tech, each partner has equal right in terms of talking, or giving
new ideas. Each partner will be given a specified area, and in that area they will be assigning
different types of work to the employees, as well as work on the decision making process. If
we talk about the responsibility of the partners, they will have to take burden of same amount
of responsibility , and they will also have to bear equal amount of asset and liabilities in the
firm.
Management Team Background
Mehedi Hasan Swapnil
Phone number: 01712985817
Email ID:
(Co-Founder & CEO) - BBA, Finance at North South University
Fahmina Ahmed
Phone number:
Email ID:
(Co- Founder & Head of Supply chain management & logistics) – BBA, Marketing at North
South University
26 | P a g e

Mohammad Tasvir Hossain
Email ID: tasvir_hossain@yahoo.com
(Head of Marketing & customer relations) – BBA, Marketing at North South University
Md. Rony Ahmed
Email ID:
(Director of operations) – BBA, Marketing at North South University
Zahid Hasan Himal
Email ID:
(Chief Financial officer) – BBA, Marketing & Finance at North South University.
Roles and responsibilities of members in the organization
Mehedi Hasan Swapnil – CEO (CHIEF EXECUTIVE OFFICER)
• Deciding on the major corporate decisions, making sure the employees are running
through the mission and vision.
• Managing or implementing the overall operations and the resources of the company
well
• Take major strategies so that long term profit is maximized in a very efficient and
effective way.
Fahmina Ahmed- Head of supply chain management and logistics
• Make sure the flow, storage, control of goods are very efficient
• Checking of ERP (Enterprise resource planning) in a daily basis to manage the
important part of the business.
27 | P a g e

Mohammad Tasvir Hossain – Head of Marketing & customer relations
• Take marketing and advertising related decisions in an efficient manner to reach out to
the customers.
• How to create brand positioning, brand image in the market, this decisions has to be
taken.
• Changing product quality, product type according to the market demand.
Md Rony Ahmed – Director of operations
• Work on how finance, marketing, supply chain departments does not clash, and come
up with an effective decision.
• Take efficient decisions on day to day process.
• Give ideas to the other departments
Zahid Hasan Himal – CFO (CHIEF FINANCIAL OFFICER)
• Manage the whole financial actions of the company, including the incoms statement,
balance sheet, cash budget, revenue budget and so on.
• Dealing with the accounting and treasury.
• Guiding to create the financial plan for the upcoming years.
Technology Utilization
Our business itself if technology based, we believe the idea of Furni-Tech can take technology
at different level. For the time being, our technology will be limited to website and social
media. For ordering through website consumers have to open A/C account, where the
consumers will have to share certain detailed information. For example- Name, Address,
telephone number, Email ID and so on. Different kind of promotional videos will be posted in
these pages time to time. On the other hand, in the future we plan to launch our app. In the app,
the consumers will be able to view our product lines. The pricing list and also the promotional
offers will be posted there in a timely manner. We firmly believe utilizing the technology will
help us to gather more customers, depending on the target market. Maximization of profit and
economic growth will get easy for our venture.
28 | P a g e

ASSESSMENT RISK
Evaluation Of The Weakness Of The Business
• High cost of capital – Our business will require high cost of capital as it is a very
unique business in the Bangladesh market. Being a student of the final year, we
don’t have much money. We plan to gather this from our parents, by taking loans
and spent our savings on it.
• Training cost – Training cost can be very high. But we believe, if the worker gets
use to with it, we will make maximize profit. To reduce the training cost, we will
take various steps.
• Competitors Imitation: Competitors might come up with the similar
product by copying our product. So, we have to set contingency plan.
New Technology
Our business idea is technology based. So in this sector we are highly concern about this and
our competitors don’t have this sort of technologically integrated product yet. So, in terms of
new technology we are in safe side and we are very responsive to the new technology as our
core competence is this.
In this picture we can see that in a normal table, there are multi plugs which is charging the
laptop, a charging port, a refrigerator where the cans and the bottles are kept. So, from one
table different kinds of services can be enjoyed.
29 | P a g e

Contingency Plan
Niche to mess: we will target a niche market first and limited product line to reduce the
exposure to higher risk. Then gradually we will move towards mess or will reduce our
operation.
Move to traditional furniture: If we see our customer is not that much responsive to our
product then we will move to traditional furniture but with the unique design which is space
saving and multipurpose useable.
Me too: last but not list approach of our business is move to a me too type production
company. As we will develop a brand image so our product will be accepted much widely
than any local manufacturer.
Sold out: If any of this is not that much profitable then we will wait till break even and
will sell our venture to any other furniture company of our machineries will be sold to other
firm.
30 | P a g e

FINANCIAL PLAN
Important Assumption
Important assumptions of FURNITECH will include the followings-
• As the investment is pretty high, it can take several months for the
company to earn a huge profit.
• Although the market growth is reasonable, it may take times for to capture
their potential market as the fund for marketing purpose is little bit high.
• Almost every expense is equal for every month but for marketing
purpose and fixed asset purpose fund is allocated accordingly
where fund should be spent.
• It can take much time than expectation to reach the break-even
point as we are providing our product at a much lower price and to
a niche group of people.
Financing needed
Budget
Long term investment 1,500,000
Property, plant, and equipment 2,000,000
Adminastration cost $2,087,000
operating cost 1440000
loss whichhave to cover 1461000
Total financing needed 8,488,000
31 | P a g e

Financing Source
Debt financing 48% 4,074,240
Equity financing 52% 4,413,760
Owner 1 882,752
Owner 2 882,752
Owner 3 882,752
Owner 4 882,752
Owner 5 882,752
Total equity 4,413,760
8,488,000
Pro-Forma Income Statement

FURNITECH
For 2019 through 2023
(all numbers in ৳ 000)
REVENUE 2019 2020 2021 2022 2023

Gross sales 5,000,000 6,500,000 8,450,000 10,985,000 14,280,500
Less sales returns and allowances 200,000 210,000 220,500 231,525 243,101
Net Sales 4,800,000 6,290,000 8,229,500 10,753,475 14,037,399
COST OF GOOD SOLD

Beginning inventory 0 100,000 150,000 200,000 250,000
Plus goods purchased / manufactured 2,500,000 3,250,000 4,225,000 5,492,500 7,140,250
Total Goods Available 2,500,000 3,350,000 4,375,000 5,692,500 7,390,250
Less ending inventory 100,000 150,000 200,000 250,000 300,000
Total Cost of Goods Sold 2,400,000 3,200,000 4,175,000 5,442,500 7,090,250
Gross Profit (Loss) 2,400,000 3,090,000 4,054,500 5,310,975 6,947,149
OPERATING EXPENSES
Selling
Salaries and wages 240,000 312,000 405,600 527,280 685,464
Commissions 100,000 325,000 422,500 549,250 714,025
Advertising 1,000,000 800,000 800,000 800,000 800,000
Depreciation 50,000 50,000 50,000 50,000 50,000
Other 50,000 50,000 50,000 50,000 50,000
Total Selling Expenses 1,440,000 1,537,000 1,728,100 1,976,530 2,299,489
General/Administrative
Salaries and wages 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000
Rent 600,000 600,000 600,000 600,000 600,000
Utilities 60,000 60,000 60,000 60,000 60,000
Office supplies 12,000 12,000 12,000 12,000 12,000
Equipment maintenance & rental 15,000 15,000 15,000 15,000 15,000
Furniture & equipment 200,000 - - - -
Total General/Administrative Expenses $2,087,000 1,887,000 1,887,000 1,887,000 1,887,000
Total Operating Expenses $3,527,000 3,424,000 3,615,100 3,863,530 4,186,489

Interest 108,000 144,000 144,000 144,000 144,000
Net Income Before Taxes - 1,127,000 - 334,000 439,400 1,447,445 2,760,660

Taxes on income 0 - 65,910 217,117 414,099
NET INCOME (LOSS) - 1,127,000 - 334,000 373,490 1,230,328 2,346,561
32 | P a g e

Pro-Forma Income Statement
FURNITECH

1st year
(all numbers in ৳ 000)
REVENUE M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12
33 | P a g e
Gross sales 416,667 416,667 416,667 416,667 416,667 416,667 416,667 416,667 416,667 416,667 416,667 416,667
Less sales returns and allowances 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667
Net Sales 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000
Income Statement
COST OF GOOD SOLD

Beginning inventory 0 0 0 0 0 0 0 0 0 0 0 0
Plus goods purchased / manufactured 208,333 208,333 208,333 208,333 208,333 208,333 208,333 208,333 208,333 208,333 208,333 208,333
Total Goods Available 208,333 208,333 208,333 208,333 208,333 208,333 208,333 208,333 208,333 208,333 208,333 208,333
Less ending inventory 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333
Total Cost of Goods Sold 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000
Gross Profit (Loss) 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000
OPERATING EXPENSES
Selling
Salaries and wages 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000
Commissions 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333
Advertising 200,000 72,727 72,727 72,727 72,727 72,727 72,727 72,727 72,727 72,727 72,727 72,727
Depreciation 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167
Other 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167
Total Selling Expenses 236,667 109,394 109,394 109,394 109,394 109,394 109,394 109,394 109,394 109,394 109,394 109,394
General/Administrative
Salaries and wages 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000
Rent 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Utilities 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Office supplies 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Equipment maintenance & rental 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250
Furniture & equipment 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667
Total General/Administrative Expenses $173,917 $173,917 $173,917 $173,917 $173,917 $173,917 $173,917 $173,917 $173,917 $173,917 $173,917 $173,917
Total Operating Expenses $410,583 $283,311 $283,311 $283,311 $283,311 $283,311 $283,311 $283,311 $283,311 $283,311 $283,311 $283,311
Net Income Before Taxes - 210,583 - 83,311 - 83,311 - 83,311 - 83,311 - 83,311 - 83,311 - 83,311 - 83,311 - 83,311 - 83,311 - 83,311
Taxes on income 0 0 0 0 0 0 0 0 0 0 0 0
NET INCOME (LOSS) - 210,583 - 83,311 - 83,311 - 83,311 - 83,311 - 83,311 - 83,311 - 83,311 - 83,311 - 83,311 - 83,311 - 83,311
Balance Sheet
Furnitech Balance Sheet

Date: 2019 to 2023
Assets 2019 2020 2021 2022 2023

Current Assets
Cash 300,000 345,000 396,750 1,230,328 2,346,561
Accounts receivable 120,000 132,000 145,200 159,720 175,692
Inventory 100,000 110,000 121,000 133,100 146,410
Prepaid expenses -
Short-term investments
Total current assets 520,000 587,000 662,950 1,523,148 2,668,663
Fixed (Long-Term) Assets
Long-term investments 1,500,000 3,697,700 4,778,070 5,352,956 6,809,614
Property, plant, and equipment 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
(Less accumulated depreciation) (50,000) (50,000) (50,000) (50,000) (50,000)
Intangible assets 3,000 3,300 3,630 3,993 4,392
Total fixed assets 3,453,000 5,651,000 6,731,700 7,306,949 8,764,006
Total Assets 3,973,000 6,238,000 7,394,650 8,830,098 11,432,669
Liabilities and Owner's Equity

Current Liabilities
Accounts payable 200,000 220,000 242,000 266,200 292,820
Short-term loans 100,000 105,000 110,250 115,763 121,551
Income taxes payable - - 65,910 217,117 414,099
Accrued salaries and wages
Unearned revenue 200,000 220,000 242,000 266,200 292,820
Total current liabilities 500,000 545,000 660,160 865,279 1,121,290
Long-Term Liabilities
Long-term debt 900,000 1,200,000 1,200,000 1,200,000 1,200,000
Other 500,000 500,000 500,000 500,000 500,000
Total long-term liabilities 1,400,000 1,700,000 1,700,000 1,700,000 1,700,000
Total Liability 1,900,000 2,245,000 2,360,160 2,565,279 2,821,290
Owner's Equity
Owner's investment 2,300,000 3,427,000 3,761,000 4,134,490 5,364,818
Retained earnings (1,127,000) (334,000) 373,490 1,230,328 2,346,561
Other 900,000 900,000 900,000 900,000 900,000
Total owner's equity 2,073,000 3,993,000 5,034,490 6,264,818 8,611,379
Total Liabilities and Owner's Equity 3,973,000 6,238,000 7,394,650 8,830,098 11,432,669
34 | P a g e

Furnitech Balance Sheet
Date: 2019

Assets M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12
Current Assets
Cash 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
35 | P a g e
Accounts receivable 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Inventory 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333
Prepaid expenses
Short-term investments
Total current assets 43,333 43,333 43,333 43,333 43,333 43,333 43,333 43,333 43,333 43,333 43,333 43,333
Fixed (Long-Term) Assets
Long-term investments 125,000 125,000 125,000 125,000 125,000 125,000 125,000 125,000 125,000 125,000 125,000 125,000
Property, plant, and equipment 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667
(Less accumulated depreciation) (4,167) (4,167) (4,167) (4,167) (4,167) (4,167) (4,167) (4,167) (4,167) (4,167) (4,167) (4,167)
Intangible assets 250 250 250 250 250 250 250 250 250 250 250 250
Total fixed assets 287,750 287,750 287,750 287,750 287,750 287,750 287,750 287,750 287,750 287,750 287,750 287,750
Total Assets 331,083 331,083 331,083 331,083 331,083 331,083 331,083 331,083 331,083 331,083 331,083 331,083
Liabilities and Owner's Equity

Current Liabilities
Accounts payable 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667
Short-term loans 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333
Income taxes payable - - - - - - - - - - - -
Accrued salaries and wages
Unearned revenue 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667
Total current liabilities 41,667 41,667 41,667 41,667 41,667 41,667 41,667 41,667 41,667 41,667 41,667 41,667
Long-Term Liabilities
Long-term debt 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000
Other 41,667 41,667 41,667 41,667 41,667 41,667 41,667 41,667 41,667 41,667 41,667 41,667
Total long-term liabilities 141,667 141,667 141,667 141,667 141,667 141,667 141,667 141,667 141,667 141,667 141,667 141,667
Total Liability 183,333 183,333 183,333 183,333 183,333 183,333 183,333 183,333 183,333 183,333 183,333 183,333
Owner's Equity
Owner's investment 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667
Retained earnings (93,917) (93,917) (93,917) (93,917) (93,917) (93,917) (93,917) (93,917) (93,917) (93,917) (93,917) (93,917)
Other 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000
Total owner's equity 147,750 147,750 147,750 147,750 147,750 147,750 147,750 147,750 147,750 147,750 147,750 147,750
Total Liabilities and Owner's Equity 331,083 331,083 331,083 331,083 331,083 331,083 331,083 331,083 331,083 331,083 331,083 331,083
Cash Flow
Cash Flow for FURNITECH in Financial Year 2020 TO 2025

CASH FLOW YEAR1 YEAR2 YEAR3 YEAR4 YEAR5
OPENING BALANCE -$3,718,000 -$3,183,000 -$1,836,410 $499,723
Cash incoming
Sales $5,000,000 $6,500,000 $8,450,000 $10,985,000 $14,280,500
Depreciation (Non-cash) $50,000
Total incoming $5,050,000 $6,500,000 $8,450,000 $10,985,000 $14,280,500
Cash outgoing
Purchases (Stock etc) $6,100,000 $3,200,000 $4,175,000 $5,442,500 $7,090,250
Advertising & marketing $1,000,000 $800,000 $800,000 $800,000 $800,000
Commision $100,000 $325,000 $422,500 $549,250 $714,025
Interest paid $108,000 $144,000 $144,000 $144,000 $144,000
Utilities (electricity, gas, water) $60,000 $60,000 $60,000 $60,000 $60,000
Lease/loan payments $108,000 $144,000 $144,000 $144,000 $144,000
Rent & rates $15,000 $15,000 $15,000 $15,000 $15,000
Repairs & maintenance $15,000 $15,000 $15,000 $15,000 $15,000
Stationery & printing $12,000 $12,000 $12,000 $12,000 $12,000
Income tax $0 $0 $65,910 $217,117 $414,099
Wages (including PAYG) $1,200,000 $1,200,000 $1,200,000 $1,200,000 $1,200,000
More… $50,000 $50,000 $50,000 $50,000 $50,000
Total outgoing $8,768,000 $5,965,000 $7,103,410 $8,648,867 $10,658,374
Cash balance -$3,718,000 $535,000 $1,346,590 $2,336,133 $3,622,126

CLOSING BALANCE -$3,718,000 -$3,183,000 -$1,836,410 $499,723 $4,121,849
36 | P a g e

Cash Flow for FURNITECH in 1st year
CASH FLOW M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12
37 | P a g e
OPENING BALANCE -$5,188,333 -$5,406,666 -$5,299,999 -$5,193,333 -$5,086,666 -$4,979,999 -$4,873,332 -$4,766,665 -$4,659,998 -$4,553,331 -$4,446,664
Cash incoming
Sales $100,000 $150,000 $475,000 $475,000 $475,000 $475,000 $475,000 $475,000 $475,000 $475,000 $475,000 $475,000
Depreciation (Non-cash) $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167
Total incoming $104,167 $154,167 $479,167 $479,167 $479,167 $479,167 $479,167 $479,167 $479,167 $479,167 $479,167 $479,167
Cash outgoing
Purchases (Stock etc) $4,880,000 $110,909 $110,909 $110,909 $110,909 $110,909 $110,909 $110,909 $110,909 $110,909 $110,909 $110,909
Advertising & marketing $200,000 $72,727 $72,727 $72,727 $72,727 $72,727 $72,727 $72,727 $72,727 $72,727 $72,727 $72,727
Commision $30,000 $6,364 $6,364 $6,364 $6,364 $6,364 $6,364 $6,364 $6,364 $6,364 $6,364 $6,364
Interest paid $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000
Utilities (electric ity, gas, water) $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Lease/loan payments $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000
Rent & rates $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
Repairs & maintenance $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
Stationery & printing $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Income tax $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Wages (including PAYG) $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000
More… $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000
Total outgoing $5,292,500 $372,500 $372,500 $372,500 $372,500 $372,500 $372,500 $372,500 $372,500 $372,500 $372,500 $372,500
Cash balance -$5,188,333 -$218,333 $106,667 $106,667 $106,667 $106,667 $106,667 $106,667 $106,667 $106,667 $106,667 $106,667
CLOSING BALANCE -$5,188,333 -$5,406,666 -$5,299,999 -$5,193,333 -$5,086,666 -$4,979,999 -$4,873,332 -$4,766,665 -$4,659,998 -$4,553,331 -$4,446,664 -$4,339,997
Ratios:
Common Financial Ratios
Debt Ratio (Total Liabilities / Total Assets) 0.48 0.36 0.32 0.29 0.25
Current Ratio (Current Assets / Current Liabilities) 1.04 1.08 1.00 1.76 2.38
Working Capital (Current Assets - Current Liabilities) 20,000 42,000 2,790 657,869 1,547,373
Assets-to-Equity Ratio (Total Assets / Owner's Equity) 1.92 1.56 1.47 1.41 1.33
Debt-to-Equity Ratio (Total Liabilities / Owner's Equity) 0.92 0.56 0.47 0.41 0.33
Return on investment -0.18 -0.05 0.05 0.14 0.21
Debt ratio: At the initial stage debt to equity ratio is high enough as we haven’t huge
amount of money at the beginning. But as the time goes we reduced our debt to equity ratio
by not paying of our debts rather than by increasing our business equity. And at the end of
the forecast this ratio is quite good.
Current ratio: This ratio presenting the short-term solvency and liquidity of our firm. It
is good enough from the beginning of the business but slightly spiked at the end. At that
point of time we will introduce a new product line as our cash goes beyond our liability
burden. So this will be our next project plan.
Debt to equity ratio: It means the debt burden on the shoulder of equity holder is almost
as equity as their own finance. But over time it gets better.
Return on investment: As to reach at the point of break-even we have to operate few

years in loss so at the beginning of the period the return on investment is negative. But the
most important news is the growth is positive and at the 3rd year it achieves the positive
return. End of the period it is giving 21% return which is lucrative.
Break-Even:
As our business contains a huge investment on fixed asset at the very first year and as the
market is saturated and building brand takes time so our break-even point is little away
from the starting year. We can see the point near the end of year 4. But from year three it
starts to provide positive cash flow with positive return.
38 | P a g e

BREAK EVEN ANALYSIS
16000000
14000000
12000000
10000000
8000000
6000000
4000000
2000000
0
1 2 3 4 5
UNITS REVENUE FIXED COST TOTAL COST
39 | P a g e

Appendix
• The furniture industry got off to a humble start as cottage industry. But after the mid-
90s, it eventually graduated to a full-fledged industrial scale. since then the furniture
business begun to grow with modern machinery, innovative designs and use of
diverse materials.
• Domestic furniture market was growing fast, at an approximate rate of 20 per cent a
year. As per the most recent BCG report on development shopper class, Middle and
Affluent Class (MAC) populace at present stands at 11.7 M and, is relied upon to
triple inside 2025. These developing class has developing expendable wages which
are being spent on buyer durables, including furniture.
• government had taken a step to provide a 15 per cent cash incentive on all types of
furniture exports
• Raw materials, such as wood, hardware, finishing materials, and other stuff, had to be
imported. A high import duty on raw materials was pushing up production cost, he
added. 60% of raw materials of furniture sector are imported.
• Government should revise the import tariff policy to help the furniture industry
survive and compete with global competitors like Vietnam and Indonesia. Bangladesh
trades furniture to Australia, Canada, India, Nepal, Bhutan and the Middle East,
• We do not have sufficient product designer, nor do we have any vocational training
institution to learn, create, and explore the domestic and international market. This has
been our biggest drawback.
• Opportunities, China, the biggest plastic manufacturer, had closed down many of their
factories due to expensive labour. This has created a golden opportunity for
Bangladesh to penetrate the global market. Workers in many nations where furniture
is created are paid more than $120 per month, while Bangladeshi workers are paid
between $37-120 per month
• Sofa sets, dining tables and beds, sold more. “Furniture sales have increased by 27 per
cent compared to last year. (2017). some early interest exists in the ship building
industry. Bangladesh is required to catch 2% of the ship building market inside the
following 4 years. This will give request to furniture in the recently built boats.
• Hatil exported products worth USD 100,000 to the Middle East, Canada, Nepal and
Bhutan every month. Navana as of now has more than 80 outlets crosswise over
40 | P a g e

Bangladesh. They import the majority of their significant crude materials and their
creation plant is completely coordinated. They shape, structure, gather and test the
materials without anyone else's input.
• More than 3,000 manufacturers in this sector. More than 20 lakh people are employed.
• The main materials utilized are wood, covered board, fashioned iron furnishings,
prepared wood and medium thickness fiber wood, molecule board and rattan bamboo.
Be that as it may, the vast majority of these materials should be imported. Of the
forested areas; Tic, Gamar and Hardwood originate from Africa, while Barmatic wood
originates from Myanmar. The duties on these materials are restrictively high. The
import obligations for all strong wood are at 10.72% while the obligation on molecule
wood is at 92.3%. This pushes the cost upwards making it harder for makers to give
moderate furnishings.
• Makers are reluctant to import handled wood on account of high import obligation of
92.3%. The timber utilized in the business is accessible from neighborhood ranger
service and import sources in any case, because of an expansion in reforestation and
government implemented defensive woodland zones; the accessibility of timber is
strongly declining.
• Around 70% production of furniture sector of Bangladesh is home furniture and 30%
is office furniture. As indicated by the EU think about, 40% of the crude materials
utilized by the business originates from residential sources. Timberlands in
Chittagong Hills and the Sundarbans are the biggest supplier of value timber in the
nation, with backwoods covering regions more than 10,600 Sq Km.
• Bangladesh Furniture Export Association (BFEA) and Bangladesh Furniture
Industries Owners Association (BFIOA) are working to maintain this industry.
• In wood furniture fabricating, work represents up to 40% of the all out expenses. In
Bangladesh work costs represent 20% of the creation. Here, the time-based
compensation rate in furniture is between USD 0.06 - 0.40, not exactly in China (USD
0.50-0.75) which is the biggest furniture sending out nation.
• Contributes 0.29% in the GDP of the country.
• Furniture industry in Bangladesh comprises of 71034 firms out of which 70953 are
micro and small scale firms and the remaining 81 are medium scale firms
• 25% firm produce both raw materials and furniture. Rest 75% produce only furniture.
41 | P a g e

• We can see since the competition among the current ventures is wild, because of the
sheer number of undertakings that exist in the market and the risk that exists from the
conceivable passageway of enormous remote brands.

42 | P a g e

43 | P a g e

44 | P a g e

Furnitech PDF

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Furnitech PDF

Загружено:

Авторское право:

Доступные форматы

Shabnin Rahman Shorna

School of Business and Economics

North South University

Subject: Report on “FURNITECH” furniture business plan.

1. Md. Mehedi Hasan ______________________

Name and addresses of the principals

Md. Rony Ahmed (Director of operations) – House# 498, Abdul Sadek

Nature Of The Business

Statement Of The Financial Need

Statement Of The Confidentiality Of The Report

Signature of the partner

Signature of the partner

Signature of the partner

Signature of the partner

Signature of the partner

Signature of the partner

Business Model Canvas

Major cities like

Cost structure Revenue

1. Reading Table- 10,000 Tk.

• Waste management. We will do proper waste management of our production plan. So

Porter’s Five Forces

Bargaining Power of Buyers

Bargaining Power the Supplier

High Power, less interested people

Distributors: as we will produce measly so a good relation with distributors have

Low power, highly interested people

Government: Government is another stakeholder. To run our business, we must

DESCRIPTION OF THE VENTURE

Reasons For Going Into Business

Smart Table (office),

Development Work Has Been Done Completed To Date

Location Of The Business

Initial Flow Of Order Of Goods

Receive order in

This will be our future plan for flow of order of goods.

6. Mehedi Hasan Swapnil

1. The partners of the business have to share equivalent amount of money.

Management Team Background

Mehedi Hasan Swapnil

Phone number: 01712985817

(Co-Founder & CEO) - BBA, Finance at North South University

Phone number: 01778663404

Email ID: tasvir_hossain@yahoo.com

Md. Rony Ahmed

Phone number: 01939773866

(Director of operations) – BBA, Marketing at North South University

Zahid Hasan Himal

Phone number: 01823678742

Roles and responsibilities of members in the organization

Mehedi Hasan Swapnil – CEO (CHIEF EXECUTIVE OFFICER)

Fahmina Ahmed- Head of supply chain management and logistics

Md Rony Ahmed – Director of operations

Zahid Hasan Himal – CFO (CHIEF FINANCIAL OFFICER)

Evaluation Of The Weakness Of The Business

Important assumptions of FURNITECH will include the followings-

Pro-­Forma Income Statement

REVENUE 2019 2020 2021 2022 2023

COST OF GOOD SOLD

Gross Profit (Loss) 2,400,000 3,090,000 4,054,500 5,310,975 6,947,149

Total Operating Expenses $3,527,000 3,424,000 3,615,100 3,863,530 4,186,489

Net Income Before Taxes -­ 1,127,000 -­ 334,000 439,400 1,447,445 2,760,660

REVENUE M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12

Pro-Forma Income Statement

Net Income Before Taxes - 1,127,000 - 334,000 439,400 1,447,445 2,760,660