EXECUTIVE SUMMERY

I.EXECUTIVE SUMMARY
Processed fish have been considered a widespread industry since a very long time. Frozen foods are the second largest export sector of the economy. The massive natural resources available in Bangladesh make this sector particularly promising for us to make invest. Export oriented fish processing plants produce Fresh Water shell On (FWSO), Sea Water shell On (SWSO), shrimp products under the most hygienic and sanitary condition under the supervision, control and guidance of foreign trained handling & processing experts. At all levels, USFDA registrations and directives of the European Communities concerning the production and exportation of frozen foods are strictly followed. Loose packaged fish available in local market has led to the dissatisfaction among the customers because of its unavailability in proper packaging. This dissatisfaction provides a window of great opportunity for hygienically processed and packed fish which satisfies the need of the customers. FIAM Fresh Fish Group (Ltd.) will make use of modern technology and will offer hygienically packed fish. Hygienic fish with a good quality will be the USP of the company. This property will make the company vastly superior to the currently available loose packaged fish market. According to the market survey consumers wont mind paying a premium if they are provided hygienically processed and packaged fish. FIAM Fresh Fish Group (Ltd.) will be marketing the product by giving advertisements in the company website, other web based business platform like cellbazzar, clickbd, newspapers and commercial ads for the television, radios. The entrepreneurial team consists of Director Strategy, Production Manager, logistics Manager, Marketing Manager and Quality control Manager. The team members know each other for several years and are highly compatible. A pilot plant would be set up in Gazipur and will be functioning from June 2012.Manufacturing will include in-house function like filleting, trimming and packaging of fishes. The project will require funding from Venture Capitalists as well as bank and personal finances of all directors.

General Description of the Venture

The business will sell raw and processed fresh fish to the citizen of Dhaka. The company will buy, and then cut, wash, and freeze fish for customers and then sell them through departmental stores and its own selling staff. Our customers can also place order through our website and phone also. The firm will be located at Gazipur where we do small scale of production in primary stage. Majority of the raw fish are supplied by the third party by ensuring our quality control steps. By selling processed fish, the firm is expected to generate moderate profit.

More than fifteen million people live in Dhaka, capital city. More than 200,000 Kg. fishes are needed daily to meet their demand. But most of the time, they do not get fresh fishes because of its scarcity and costliness in Dhaka. If we can buy fresh fishes at low prices at distant places and can sell them to the citizens of Dhaka after processing the fishes that will be a lucrative business which is the idea behind launching the business of a fish processing firm. Before deciding to launch this business, we took the help of a micro screening. We had a number of alternatives such as meat firm, restaurant business, fast food business, horticulture etc. the business of fish processing was selected because it earned highest score.

The Products

The product of the firm will be fresh fishes processed and packed fresh fishes. Fresh fishes will be available in packets of 1/2 Kg, 1 Kg and 2 Kg. the most attractive feature of the product is that the fishes will be indigenous and fresh. The product will have a manufacturing date as well as an expiry date. The good thing is that the difference between these two dates will be only two days. That is, the fishes will not be left in the freezes for infinite time period. The retailers must sell them within two days. This will make sure that the customers will get fresh fishes.

Website:
There will be a website for FIAM Fresh Fish Group (Ltd.) named , through which will show the entire market of our product at a glance on computer screen. Like This: Fish Type Rui Katla Telapia Farmed Koi Size Price

Farmed Pangas Hilsha Grasscarp Silvercarp Mirrorcarp Karfu CatFish Sharputi Shrimp Other

Anyone with internet access can browse our website and give order for our product. Items posted by WEB, WAP or SMS are instantly visible to users of any platform. Web platform will make our business available to an international audience. By using the website we will be able to reach our customer very easily. We can present our product with picture in the website.

Voice Call Service

Our customer can order for our products through phone calls.

INDUSTRY BACKGROUND

Now a day, more food items are contaminated and our city lives are getting busy day by day. So, lots of entrepreneurs are intending to manufacture contamination-free products and products those will be convenient for the busy city dwellers.

COMPANY HISTORY
We five friends from IBA-JU, when doing entrepreneurship course first decide to establish a business as our course requirement. We are pretty much confident that after completing our course we can work our business plan to make it a successful venture.

Goals/ Potential of the Venture

The goal of this business will be to sell fresh fishes to the citizens of Dhaka as well as to make some profit. We always provide the best possible value to our customers who care about quality fish, and we want every Taka spent with us to be well spent. We seek fair and responsible profit, enough to keep the company financially healthy for the long term and to fairly compensate owners and investors for their money and risk. Through this business, we want to contribute somehow in the economy of the country.

Uniqueness OF THE Products and

Service

The idea seems to be new; we think the industry will grow at a moderate rate. There are some reasons for which we think we can succeed in this business. They are Now a day, housewives are busier with other affairs than cooking. We think that they will prefer processed fishes to eat. We will have uncompromising commitment to the quality of the end product: quality fishes, quality washing, quality packing, and quality of end result.

We will make fresh fishes available at the doorsteps of the citizens. They will not
have to go to the market to buy fishes; rather they will be able to order it from the website or phone calls. They can also use their credit card. So we hope they will like our product. We are blending the concept of e- commerce and traditional business.

Most of the fishes available in Dhaka city are not fresh and hygienic. We will
supply hygienic fishes and hope that the citizens of Dhaka will prefer our product than that of other sources.

MARKETING SEGMENT

A. Research and Analysis Target market

Our market survey showed that there are mainly 3 types of consumers in Dhaka; households, hotels and restaurants, students and service holders residing in messes. The pie chart shows their proportion:

D ifferent Types of Consumers

20%

35%

45%

H ouseholds H otels Service H olders & Students

SIZE OF THE MARKET and TRENDS

Our target market is quite big. Almost 15 million people live in Dhaka. A research revealed that on an average 375000(avg 25 gm per head) kg fish is needed daily to meet the demand of the citizen living in Dhaka.

We will sell fresh fishes to the households, service holders through our distributors. Our sales team will supply fishes to hotels, restaurants and super shops also. With the convenience of buying fish at such an easy way people will prefer our service.

Competition
ANALYSIS OF COMPETITORS
We do not have any direct competitors. The numerous competitors we have are indirect ones. There are wholesalers of fish, retailers, and hawkers- all sale fishes. Now a day, some super shops like Nandan, Agora, Mantra, and PQS sell fishes. All these are our competitors but all of them sale raw fish. The competitive advantages we will have are listed below: We will sale processed fish that will take less time and effort to be cooked. The housewives will prefer processed fish to raw ones. We will offer pure fresh fish. Our product will be available at the doorsteps of the consumers. So they will need less cost and effort to buy them. They will also need less time, cost and effort to buy from us.

Our product will be frozen. So, we make sure that the consumer will not have to eat rotten fish.

INDUSTRY FORECASTS
Though the idea of selling processed fish and raw fish through internet and phone calls,, we think the industry will grow at a moderate rate.

Marketing Plan
SALES and DISTRIBUTION
We will have two types of distribution policy. Firstly, we will supply the fishes to our institutional buyers and secondly to household consumers who can process orders through phone call or web based platform. Initially we will launch web based platform and phone call order placement system at a very limited scale. Our processed fishes will be carried to Dhaka by a big frozen truck. Then the fishes will be delivered to the distributors and customers by small delivery pickups. We will buy 5 such pickups. We will choose one hundred big and medium departmental stores as our distributors. Each distributor will get a refrigerator from the firm in which they will keep the fish. They will not pay for the refrigerator but each distributor must pay a refundable security deposit of Tk. 25,000 (twenty five thousand). The delivery vans will deliver the fish within 9 a.m.

PRICING
We will maintain our pricing position as a premier provider. We offer the best product available, for our valued consumer. We intend to maintain our separation from the price competition at the lower end of the business. Our plan calls for no significant changes in pricing.

Price list for the next 3 years is given below:

Type of Fish
Chicken Mutton Beef

2012(price per kg)

120 270 180

2013(price per kg)

130 280 190

2014(price per kg)

135 290 200

PROMOTION
Fresh Fish is going to be a relatively new product for our target customers. We will have a promotion policy that will use newspapers as well as fm radio, leaflet, internet adds. We also send our sales team into different hotels and resorts for promotional purpose. Firstly we will advertise in the newspaper for our products. The features we will highlight are listed below:

The citizens of Dhaka eat rotten fishes. If they choose Fresh Fishes, they will be able to eat fresh and hygienic fishes. The consumers will be able to eat pure indigenous fish if they choose Fresh Fishes. Fresh Fishes will be ready for cooking. So it will save valuable time of the housewives which they can utilize in their own way. Fresh Fish will be comparatively cheap than the other ones available in the market place.

Our distributors will also advertise for our product. They suggest their valued customers to choose Fresh Fish instead of other fishes available in the market place. Anticipated cost for advertisement in the first year is Tk.4, 400,000 (4.4 million).

PRODUCTION PLAN
Suppliers and transportation factors Majority of the raw fish collected from inside and outside Gazipur locally situated fish farms. We contract three fish farms which will provide us raw fish according to our quality standard and requirements. Suppliers will provide the fish to our factory at their own cost.

MANUFACTURING PROCESS
The company will process fresh fishes. So the manufacturing process is much simple. The suppliers will supply fresh fishes to the farm. Then the fishes will be cut, washed, packed and kept in the cold storage for freezing. The frozen fishes will then be carried to Dhaka in a frozen lorry and the delivery vans will supply them to the institutional buyers. The steps of the manufacturing process are:

STEP ONE
Suppliers supply the raw fishes to the farm. In fact there will be numerous suppliers. They will deliver these to the farm. Our buying agent will maintain affairs with them.

STEP TWO
The fishes will be cut by the workers. Workers will wear hygienic uniform and the cutting process will be completed hygienically and manually.

STEP THREE
Then the workers will wash the fishes. These workers will also wear uniforms .

STEP FOUR
The fishes are weighed and packed. The fishes will be weighed using automatic scales and packed using machines.

STEP FIVE
The fishes are kept in the cold storage. There will be a cold storage which will be used to freeze the fishes.

STEP SIX
The fishes are carried to Dhaka by a frozen truck. A big frozen truck will be bought in order to carry the fishes to Dhaka. All the products will be manufactured in the farm. There will be no subcontract.

PHYSICAL PLANTS

The plant will be a one storied building which will contain a cold storage as well as office rooms. The processing plant will have adequate space for processing fish. There will be mainly three units in the plant: cutting, washing, and packaging. All units will be equipped according to the necessity.

MACHINARY AND EQUIPMENT

The production process is more a manual one than an automated one. So the equipment needed will not be costly ones. We will need some pots, knives, scales, packaging machines etc. The most important machinery will be the machinery used to freeze the fish. Cold storage will be built and anticipated cost for building a 900 square feet cold storage is Tk. 1,000,000 (one million). We will hire two diploma engineers for the maintenance of the cold storage.

ORGANIZATIONAL PLAN

MARKETING PLAN
Fresh Fish Processing Firm will be established as a partnership firm. All of them have equal shares in the venture.

Key personnel

There will five partners in the business. They are:

Md. Istiaque Ahmed Mon Mon Akter Mohammad Arafat Hossain Fatema Tuz - Zohara Mohammad Mufakkharul Islam

DUTIES & RESPONSIBILITIES OF THE PARTNERS

Mohammad Arafat Hossain

General manager. He will act as In-charge of the Dhaka office. He the entire production process. will supervise

Fatema- Tuz - Zohara

Marketing manager. She will act as In-charge of the Gazipur office. She will look after the selling and distribution process.

Md.Istiaque Ahmed
Finance manager. He will be responsible for determining sources of funds and the proper disbursement of these collected.

Mohammad Mufakkharul Islam

Production manager. He will be responsible for the amount of raw fishes required for desired amount production and cost of production.

OTHERS APPONTED
Quality control manager, diploma engineers. They will be responsible for the controlling quality of the product at the predetermined level.

Mon Mon Akter

Accounting manager. She will be responsible for recording, classifying, summarizing financial transactions.

ROLES & RESPONSIBILITY OF MANAGEMENT TEAM

The firm will maintain a vertical management hierarchy . In the factory, there will be general manager and all three managers will report to him. The managers will be liable for the activities of their subordinates. The following figure illustrates the management hierarchy. In Dhaka office, the entrepreneur will direct all his subordinates. A joint account will be open in the name of the firm. The checks will need to be signed by General Managers and Head of Accounts.

General Manager Buying Manager Accounti ng Manager Productio n Manager Production Supervisor Quality Control Manager

Finance Manager

Buying agent

Quality Control Assistant

Production Worker

ASSESSMENT OF RISK

WEAKNESS OF THE BUSINESS

The proposed fish processing and selling business is almost free from any direct competition. But in a few years there will be a number of competitors as this business is lucrative and there are a few barriers to enter this business. The firm will be located 70- 80 km away from Dhaka . So, carrying cost is high for the firm. If any similar firm is established somewhere near Dhaka, they will have very low carrying cost. So, they can offer a lower price. The firm will then face vigorous competition. Price of raw materials (fresh fishes) may increase in future. Then the firm will face struggle to sell processed fishes at prevailing prices.

CONTINGENCY PLANNING
When the competition will rise, the firm will adapt some of the following policies:

The firm may start poultry business. The products of the poultry firm will be flesh
and egg. Besides, the faces of chicken will be used as food of the fishes. This business will act as a backward linkage of the existing business. The firm may start a meat business. So, it will act as a backward linkage of the fish processing business The firm may start a dairy firm. The main product of the dairy firm will be milk. But cow dung will be another important bi-product which will be used in production of fish.

SOCIAL Social CostCOST & BENEFIT ANALYSIS

SOCIAL COSTS
Initial investment needed is Taka 60,000,000. This money could be used in other projects. This opportunity cost is a social cost. If we sell processed meats to the households, some hawkers who used to sell meats to the households, will loose their job.

BENEFITS
The citizens of Dhaka eat rotten and poisonous chemical-mixed fished which can cause various diseases for them. Our &&&& will save them from this kind of harm.

A good number of village people will get employment in the firm. This is surely a social benefit.

SWOT ANALYSIS

S - STRENGTHS
Hygienic elements are ensured Fully new idea Emerging market Customer satisfaction Strong staff resources Reasonable sales price Own transport & communication systems Advertising

W - WEAKNESS
Very unfamiliar concept Cost-sensitive project Lack of substantial capital Amateur senior management High transportation costs

O - OPPORTUNITY
Taking over of competing firms Impressive relationship with suppliers Cutting costs

T - THREATS
Emerging of new firms Competitors change in action Change in consumer taste

FINANCIAL PLAN

FINANCIAL PLAN

A projected financial statement is presented below and necessary workings are shown later.

Pro Forma Income statement For The Years 2009, 2010, & 2011
Particulars 2009 2010 2011

FRESH MEAT HOUSE

Turnover Less : cost of goods sold Gross profit Less : Selling,

administrative and distribution expenses

200,750,000 1 173,565,000 27,185,000

220,825,000 190,921,500 29,903,500

242,907,500 210,013,650 32,893,850

17,800,000 9,385,000 55,000

19,600,000 10,303,500 40,500 10,263,000

21,600,000 11,293,850 14,550 11,289,300

Net operating income Add: other revenue Earnings before interest and taxes (EBIT) Less : interest expenses Less : taxes Net profit

9,330,000

1,200,000 0

1,131,619 0

1,055,032 0

8,130,000

9,131,381

10,234,268

Pro Forma Balance Sheet For The Years 2009, 2010, & 2011

FRESH MEAT HOUSE

Particulars ASSETS Fixed assets : at cost less depreciation Factory building (including equipment) Land Vehicles Cold storage Furniture Long term investment: Current assets : Receivables Bank deposit Cash in hand Total LIABILITIES & OWNERS EQUITY Long term liability: Bank loan Current liability: Salaries payable Accounts payable Owners equity : Capital Ishtiaque Capital Mon Mon Capital Mufakkharaul Capital Arafat Capital Fatema Retained Earnings Total

2009

2010

2011

2,050,000 1,000,000 9,000,000 1,300,000 450,000 250,000 1,650,000 7,500,000 3,800,158

2,025,000 1,000,000 8,000,000 1,015,000 405,000 300,000 1,815,000 8,250,000 5,203,920

1,802,500 1,000,000 7,200,000 1,093,000 364,500 112,000 1,996,500 9,075,000 5,411,793

27,000,158

28,013,920

28,053,793

9,400,058 30,100 1,440,000 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000 8,130,000 27,000,158

8,751,035 41,035 2,090,604 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000 9,131,381 28,013,920

8,056,100 21,025 1,742,400 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000 10,234,268 28,053,793

FRESH MEAT HOUSE

Pro Forma Cash Flow Statement For The Years 2009, 2010, & 2011

Particulars

2010

2011

2012

Cash Receipts
Cash Received from customer Cash Received from borrowings Cash Capital 199,100,000 10,000,000 8,000,000 220,660,000 242,726,000

Disbursements
Cost of goods sold Salaries & Bonuses Advertisement Telephone Rent Insurance Server expense Partners Fees Other Expenses Fixed Assets Purchased Loan & Interest Payment Total Disbursement Cash Flow Beginning Balance Ending Balance (Cash) Ending Balance (Bank) 171,725,000 3,283,000 4,400,000 240,000 1,800,000 200,000 46,000 3,000,000 3,836,000 15,500,000 1,769,842 205,799,842 11,300,158 3,800,158 7,500,000 190,270,896 6,152,432 4,840,000 264,000 1,980,000 214,000 56,600 5,841,132 7,117,336 0 1,769,842 218,506,238 2,153,762 11,300,158 5,203,920 8,250,000 210361854 6,767,676 5,324,000 290,400 2,178,000 240,400 57,260 6,100,000 11072095 0 1,769,842 244,161,527 1,032,873 13,453,920 5,411,793 9,075,000

Pro Forma Ratio Analysis For The Years 2009, 2010, & 2011

FRESH MEAT HOUSE

Ratios
PROFITABILIT Y
Gross profit ratio Net profit ratio Return on investment ratio

2009
13.54 % 4.05% 31.80 %

Comment
Not satisfactory Not satisfactory Satisfactory

2010
13.54 % 4.14% 35.22 %

Comment
Not satisfactory Not satisfactory Satisfactory

20 11
13.54 % 4.21% 38.9%

Comment
Not satisfactory Not satisfactory Satisfactory

LIQUIDITY
Current ratio *Quick ratio Working capital ratio 8.99:1 8.99:1 7.99:1 Satisfactory Satisfactory Satisfactory 7.30:1 7.30:1 6.3:1 Satisfactory Satisfactory Satisfactory 9.46:1 9.46:1 8.46:1 Satisfactory Satisfactory Satisfactory

SOLVENCY
Debt to equity ratio Debt to assets ratio 58.46 % 0.40:1 Satisfactory Satisfactory 51.32 % 0.39:1 Satisfactory Satisfactory 44.29 % 0.35:1 Satisfactory Satisfactory

After calculating the ratios of the firm, we found that gross profit ratios and net profit ratios are not satisfactory because the cost of goods sold and the operating cost is very high in the first three years. But the other ratios are satisfactory because this firm is very profitable firm to invest in long term. We assume as a new type of business the demand for this kind of product will increase day by day. As a result the profit will be relatively high than previous year. Here, we assumed that there will be no inventory available in hand. Therefore the quick ratio will be same as the current ratio.

FRESH MEAT HOUSE

Projected Break Even Analysis
For The Years 2009, 2010, & 2011
2009 5,000 200,750,000 140 91.64 8,130,000 33,507,000 16.69% 1,316,449 144,809,390 55,940,610 4.12 2010 5,500 220,825,000 150 95.80 9,131,381 28486425 12.90% 1,284,753 141,322,830 79,502,170 3.11 2011 6,050 242,907,500 160 96.38 10,234,268 30,071,948 12.38% 1,379,373 151,731,030 91,176,470 2.93

Particulars Projected sales (kg) Sales Volume (in Tk.) Selling price per Kg (in Tk.) Variable cost per Kg (in Tk.) Net Income Contribution Margin (in Tk.) Contribution Margin ratio BEP(in quantity) BEP (in Tk.) Margin of Safety Operating Leverage (in Times)

WORKINGS COST OF GOODS SOLD

Particulars
Opening stock of finished goods Add : cost of goods manufacture cost of goods available for sale Less : closing stock Cost of goods sold

Amount
0 173,565,000 173,565,000 0 173,565,000

SELLING, ADMINISTRATIVE AND DISTRIBUTION EXPENSES

Particulars
Selling, administrative and distribution expenses Salaries Health and other welfare expenses Bank charges Advertisement Festival bonus Fuel Server expense Web hosting Repairs and maintenance Convenience expenses Stationary Traveling expense Leasing expense Telephone expenses Rent Bed debt Legal fees Auditors fees Insurance Land revenue Depreciation Vehicle 1,000,000 Furniture 50,000 Partners fees Salary 2,400,000 Bonus 600,000 Total

Amount
2,804,000 200,000 50,000 4,400,000 300,000 2,100,000 200,000 90,000 76,000 800,000 120,000 100,000 200,000 169,000 1,800,000 40,000 100,000 100,000 240,000 6,000 1,050,000 3,000,000 17,855,000

AMORTIZATION SCHEDULE
The firm will take a loan of Tk 10 million which will be amortized over the next 10 years. The interest rate will be 12%. The amortization schedule is shown below:

Year 1 2 3 4 5 6 7 8 9 10

Installment Amount 1,769,842 1,769,842 1,769,842 1,769,842 1,769,842 1,769,842 1,769,842 1,769,842 1,769,842 1,769,842

Interest Payment 1,200,000 1,131,619 1,055,032 969,255 873,185 765,586 645,075 510,103 358,934 189,625

Principal Payment 569,842 638,223 714,810 800,587 896,657 1,004,256 1,124,767 1,259,739 1,410,908 1,580,211

Principal Outstanding 9,430,158 8,791,935 8,077,125 7,276,538 6,379,881 5,375,625 4,250,858 2,991,119 15,802,11 -

CONCLUSION

FIAM Fresh Fish Group (Ltd.) is really an absolute and real thought of an innovative business in this modern competitive business world. And we prepare our business plan in the way that it will sure be a successful business entrepreneurship if anybody takes an initiative to formulate the business plan. And it must be seeing the light of success if other things being constant though we have considered the price effect of the meats in the future market by considering the flow of rising the price in the market since last few years but a question always remain in the back of this event and it is the limitation of our study with this matter. At last we hope that this business will sure be able to achieve the faith of general people and do its projected business well. We want to establish this firm as like as a new brand of our country where people think before they eat in hotel or in house. In future they will be in relaxation thinking that they are eating the right meat from FIAM Fresh Fish Group (Ltd.) .