EAST

DELTA
Social Business Plan
UNIVERSITY

Abul Aref Khwaja Arefuddin (aak.arefuddin@yahoo.com)
Imran Amir Dovash (imran.dovash@gmail.com)

S

Md. Emran (smemran.edu@gmail.com)
Zaigham Islam (zagz1990@yahoo.com)
Ashab Uddin (ashab040@gmail.com)
Shakawat Sabbir (nisabbir@yahoo.com)
Shahriar Novo (shahriar72@yahoo.com)
Ridwan Islam (rid_jack007@yahoo.com)
Sarwar Uddin (sarwartunu@yahoo.com)
Saleh Ahmed (saleh.sunan@facebook.com)

2012

[ C R O S S -T R E N D ]

East Delta University

2

“Focusing humanity,
Bringing equity”

Cross-Trend

[HANDICRAFTS SOCIAL
BUSINESS: CROSSTREND]

Moreover. Bringing equity” Company Description: We shall start a handicraft business which is on the verge of extinction as the root level artisans involved in this sector are not getting any favor or patronization from the government as well as private sector. our focus is to understand this standard sought by the overseas clients and design our products according to the standard of the international market. However. As overseas has a great demand for handicrafts.East Delta University 3 “Focusing humanity. Mission Statement: “To rejuvenate the extinct art of handicrafts utilizing the local expertise and to be the global leader in this sector” The products that we intend to offer in the market are: . the traditional artisans involved this industry are unable to understand the standard of the international market. it has been neglected for decades as there is no touch of modernization. In our company we shall offer fashionable and customized products according to the need and want of the customers. Bringing equity” Cross-Trend o Description of the Company  Name of the Company The name of our company will be Cross-Trend. Our aim will be helping them reach a respectable position in the society. Our focal point will be creating employment opportunity for the physically challenged people who are often deprived of. Overseas people are very much attracted by the handicrafts. Our tagline will be “Focusing humanity. We shall try to bring a revolution in this industry by revitalizing this artistic and aesthetic craftsmanship with the touch of modernization. so it could be a big platform for the industry to grow and make our indigenous handicrafts more marketable in the global market.

Bringing equity” .East Delta University Cross-Trend Jute Bags Jute Rugs Jute Tissue Box Bamboo Sofa 4 “Focusing humanity.

Bringing equity” .East Delta University Cross-Trend Cane Chair Cane Rocking Chair 5 “Focusing humanity.

Our main purpose is to employ the physically challenged people who are being neglected by the society and different organizations. Eradicate extreme poverty and hunger through creating employment opportunity: We are offering employment opportunity to the people of the rural areas who have the skills and potential but unfortunately their expertise are not being utilized at all.East Delta University 6 “Focusing humanity. Bringing equity” Cross-Trend Jute shoes Jute Sandals Social Problems addressed (one or more of the 8 Millennium Development Goals) i. Most of them who are the only bread-winner of their family earn their livelihood by begging and others become burden for the family as well as .

ii. Bringing equity” Cross-Trend for the society.  Continue to reduce overhead costs through attaining the economy of scale. bamboo. Moreover. Our next segment shall be the youth (college/university students) as they are attracted to fashionable wear like trendy shoes. the people involved in this sector demand modernization.East Delta University 7 “Focusing humanity. which are very eco-friendly. Ensure environmental sustainability: Our main raw materials are jute. 5 Key Factors to Success  Develop new products while maintaining the high quality of existing products. We can offer innovative and modernized products which are introduced in the market for the first time. Our aim is to overcome this problem by providing them a good amount of earning and consequently making them self-dependent. considering its potential in the local and the international market.  Continuously motivating employees/workers and encouraging them in such a way that they can produce competitive products effectively and efficiently. Now. the question is. Our products are totally natural biodegradable and compostable and these are therefore an extremely attractive renewable resource for those who are at the forefront of the environmental movement and those who give top priority to environmental and ecological concerns. We shall offer them attractive and trendy product at a cheaper price. New technologies and market competition always put pressure on them to take steps to modernize this sector.  Competitors .  Offering customized and attractive products at a cheaper rate. how we will modernize this sector. the products are recyclable and reusable. o Market Analysis  Target Market(s) (Market Segmentation) Our target market would be middle class as they have fascination for modern and attractive product but they are unable to afford such products as the price are often too high. In Bangladesh.  Making customers aware of the products through continuous and effective IMC practices. cane etc.  Market Trends Handicrafts have been exposed to commercialization in recent time.

Creation and Pioneers are exporting handicrafts to foreign countries. Dhaka Trade. Nipun crafts. Students of fine arts and fashion graduates can work as interns here.  Promotional strategy  Local promotional strategy  Using banner in different prime locations. experts will research the traditional design. traded and exported by the giant non-government organizations and private enterprises. most of the handicrafts are produced. We shall offer discount on bulk purchase Standard Costing. Kumudini. Among them Karuponno Rangpur. Arong. We are bringing some star products (jute shoes. our designs are more fashionable than our competitors. We are offering customized products that will be made according to the customers’ desire.  Competitive Strategy We are offering attractive modernized products. Bringing equity” Cross-Trend At present. jute curtains) which are not yet introduced by any of our competitors.East Delta University 8 “Focusing humanity.  Pricing Strategy  Penetration pricing strategy will be followed through offering at the cheapest price than   the competitor. Moreover. in Bangladesh. and skilled or semi-skilled people living in rural areas work according to the dictation of the designers. We shall establish a combined Research and Development centre with different departments for different handicrafts. style. In this case creativity from root level is being automatically discouraged. mode of production and develop new types of design and fashion and that will strengthen our competitive position in the international market. In these firms there are professional designers with technical expertise who design the products. We shall offer special discounts on bulk purchase to our local and foreign clients. In this centre. .

Bringing equity” Cross-Trend    Distributing brochures and leaflets in the houses and offices of local area. Offering special discounts and customized facilities to overseas customers. We shall advertise our product on  social network like Facebook and Twitter.  Involvement of Corporate Partner Initially we did not go for any corporate partner.  Source of initial Funding Initial Funding will come from the Social Business Fund. o Products and Services  Product/Service Design Process . Arranging fairs at different university/college campuses and promoting the product as well as selling them over there even at a cheaper rate then normally it will be sale in the  market.  Global market promotional strategy  Creating own website where we shall offer all the products with images and price along  with contact address. Advertising on website like Alibaba and Amazon. o Type of Social Business  Is Your Business a Type І or Type П Social Business? Our business is type I social business because our main motive is to convert disables into productive. We shall have a mobile display centre for our handicrafts so that people from differnt locations can easily know about our products.com. Doing campaigning in different universities and colleges all over the city.  Who are the Investors? Initial investors are ten young and dynamic business graduate of East Delta University and Social Business Fund as a Debt Equity partner.East Delta University 9 “Focusing humanity. Private Investor and Trade Credit.

jute gents’ handbag.East Delta University 10 “Focusing humanity.  How will Your Products/Services Address the Social Problem? Our products will be eco-friendly. bamboo and jute furniture. jute curtains. jute shoes. The products will be jute floor mat. jute ladies bag. We shall employ both the physically abled and disabled people. Bringing equity” Cross-Trend  Production Distribution Channel: Facto ry Domestic Market Storage Showroo m Custome r Foreign Market Port/Ship ping Agent/De aler Custome r Range of Products to be offered We shall offer a wide range of products which would be very attractive and cheaper. o Business Structure  Operational Model Advantages of the project location: The proposed project to be located at Kalurghat vari shilpo elaka under Chittagong District. jute sandals. We shall offer fair price to the rural under-privileged people of which they are often deprived of. Through offering employment opportunity to the physically disabled people (mainly the people without legs) we shall try to bring equity in the society. It is a place where a .

labor shed  Company Structure Organ Gram CEO Director – Marketing & Public Relation Director Operation Director . water. Europe and USA for the increased demand. UK and Netherlands. Contracts with suppliers: First of all we will make contracts with local suppliers for raw materials from domestic market & the company will seek the required raw materials from abroad targeting highest coconut producing countries. The project site is enjoying facilities like electricity. Promotional activities: To introduce customers with Cross Trade we will send our sales representatives with the company brochures to the targeted distributors and buying agents. Purchasing Machineries: To ensure high quality we will import the Machineries and Advanced technology from USA. China. septic tanks. India. skilled labor and good road and river communication. Building & Others Civil Works: The project would require: Raw materials Go-down Finished goods-down Factory building Boundary wall.East Delta University 11 “Focusing humanity. Indonesia & Malaysia.Finance Accountant (1) Department of Marketing Marketing manager (1) Online Marketing Public Relation Part time door to Sales Representative (5) ITofficers officer (2) door promoters (7) Cashier (1) Unit Production Raw Materials Adviso r Supervisor (1)Disable People Administration (10)(3) Labor Warehouse Assistant Engineer Management (2) Manager(1) Supervisor (2) Technical LaborLabor (14) (2) . Bringing equity” Cross-Trend good number of industries have been developed.

One from Mechanical Engineering & the other from Chemical Engineering. Head of Operation – would be a Production Engineer. Executives (5) will have minimum bachelor or equivalent degree. Assistant engineers (2) will be diploma engineer. The accountant (1) should have minimum Bachelors in Accounting. The PR officers (5) will have sufficient knowledge & experience in Public Relations. . Bringing equity” Cross-Trend Management & Human Resources Profile: The Advisor would be a PhD holder in related field with 10 years experience. 10 disable people who will be the main manufacturers of the products.Negotiator (2) East Delta University Receptio nists(2) 12 “Focusing humanity.

 It is the potential source of foreign revenue because of higher export.  Diversified product range that service different market  Industry provides potential sources of employment.  Lack of co-ordination between government bodies and private players. Bringing equity” Cross-Trend Sales representatives (7) will work as our missionary sales force. Our star product makes us unique as no other firm offers this kind of product.  Industry needs low capital investment.  Low or no involvement of Technical person such as Textile Engineers. They have to be very efficient. Fashion designers etc. For that reason we will hire the experienced people.  Inadequate information of current market trends. o Identify Three Major Challenges  Assessment of Risks (SWOT Analysis)  Strengths  Naturally we are resourceful in craft raw materials.  We are the only firm that offers customized products  We shall offer extensive training to our workers on application of technology in the  traditional handicrafts.East Delta University 13 “Focusing humanity. o Weaknesses  Industry is lacking with infrastructure and communication facilities  Lack of capabilities in producing large volume. .

Italy etc. Bringing equity” Cross-Trend  Capacity to handle limited orders  Unawareness of international standards by many players in the market.  Developing of domestic and international tourism sector.  Rising demand and usage of handicrafts products in fashion industry.  E-commerce and Internet are emerged as promissory distribution channels to market and sell the craft products.  People likes diversified designs and handmade items . Canada.East Delta University 14 “Focusing humanity. UK.  Less interest of young people in craft industry. Japan. India.  Development of sectors like Retail that offers great requirements of handicrafts products. Germany.  Lack of skilled labor.  Our cultural and jute good has got values in overseas market.  Still confined to rural areas and small cities and untapped market o Opportunities  Emerging demand for handicrafts goods in developed countries such as USA. France.

East Delta University 15 “Focusing humanity. Bringing equity” Cross-Trend  Cheap manpower available in our country. Craft Forums and advertisements  Promotion of cultural tradition and heritage .  Awareness should be increased among craftsmen and customers through Trade Events. as Chinese embroidery machine products compete with our hand stitch. design and adaptability with modern machine made products. o Threats  Hand-crafted products have to compete on price. Seminars.  Contingency Plans  The primary objective is to create an environment that helps the industry to compete on the global basis. which make difficulties for our traditional products to be competitive in international market.  Artificial automated product produced by competing countries.  Potential source of foreign revenue.

 Through improving labor productivity in a high labor intensive and price competitive market. Maintain Quality Standards.East Delta University 16 “Focusing humanity.  There should be market platform for craft producers belonging to rural areas to market their products. database. product durability and reliability. e-Commerce)  Hiring skilled manpower. Bringing equity” Cross-Trend  Developing technologies to recycle natural resources to produce new products and ensure waste minimization. provide training and awareness about latest technology and market trends  If orders are big we shall hire temporary workers and even we shall go for outsourcing o Financial Forecast: . and Packaging  Cost Effective Distribution Development using both Physical and Electronic Distribution Channels (Internet.  Development of electronic platform by using internet to provide information.  There should be optimized distribution network and supply chain management. and marketing and distribution solution.  Cost Effective Production.

Utilities exp. General Expenses Depreciation of Furniture & Fitting Depreciation on Machine Allowance for doubtful A/c Misc. Freight out Delivery Exp. Advertising Exp. On Delivery Van 150000 100000 600000 100000 50000 50000 50000 320000 1420000 Marketing & Selling Exp. Bringing equity” Cross-Trend CROSS-TREND Estimated Income Statement For the ended of the six month period (Jan.East Delta University 17 “Focusing humanity. For sales dept. Operating Income 2688000 Non operating Exp. Salaries Office & Factory Office supplies expenses Directors Remuneration Insurance Expenses Rent Expenses Office Administration Exp. Interest Exp. 30). 2013 Particulars Sales Revenue Less: Cost of Purchases 4680000 700000 3980000 Gross Profit Less: Operating Expenses: General & Administration Exp. Packing Exp. Dep. general exp. Interest on Loan loss on disposal of assets Accidental Loss Net Income Before tax Less: tax 50000 50000 100000 200000 400000 892000 133800 . 1 to June. Rent (Factory) 800000 50000 50000 40000 60000 40000 25000 40000 23000 50000 20000 70000 1268000 Sales salaries Traveling Exp.

30).000 200000 30000 100000 50000 40000 30000 100000 150000 850000 Property Plant & Equipment Delivery Van less: Accumulated Deprectiopn Office Furniture & Fixture less: Accumulated Deprectiopn Machine 1600000 320000 400000 40000 240000 1280000 360000 . 2013 Particulars Current Assets Cash at Hand Cash At Bank Accounts recivable Ending Inventory Advanced To farmer(Jute) Advanced Rent (Showroom) Supplies Advance to Farmer (Rubber) Prepaid Insurance Office Stores (Factory) Tk Tk Tk 50000 100. 1 to June. Bringing equity” Cross-Trend Net Income After Tax 758200 CROSS-TREND Estimated Income Statement For the ended of the six month period (Jan.East Delta University 18 “Focusing humanity.

East Delta University 19 “Focusing humanity. Bringing equity” Cross-Trend less: Accumulated Deprectiopn 24000 216000 1856000 Intangible Assets Preliminary Expenses Research & Development Training & Development 50000 150000 94000 294000 3000000 Total Assets Liabilities & Owners equity Current Liabilities Accounts Payable Interest Payable Trade Credit Long Term Liabilities 15% Social Business Fund 100000 50000 91800 1000000 Owners Capital Capital Net Income 1000000 758200 Total Liabilities & Share Capital CROSS-TREND Break Event analysis Month/Particulars January February March April May June Sales (Tk) 600000 650000 700000 800000 900000 1030000 Cost (Tk) 800000 770000 700000 620000 530000 368000 241800 1758200 3000000 .

East Delta University 20 “Focusing humanity. Bringing equity” Cross-Trend All amounts are shown in Taka We know.2014 Jan01Jun30. 000=Tk700.2015 2300356. Sales=Cost Here. 000 CROSS-TREND Profit Growth For the end of the next six of six month period (Jan.2013 892000 0 July01Dec31.2014 1179670 15% July01Dec31. 2013-2015 Jan01Jun30. At Break Even. Break Even at 3rd Month where Sales=Cost Tk700.2015 1415604 20% 1769505 25% July01Dec31.30) . 1 to June.2013 1025800 10% Jan01Jun30. 5 30% .

200) (30% of Tk10.460 Tk 250.800) (30% o Social Impact Analysis  Social Return on Investment: of 11.East Delta University 21 “Focusing humanity. We shall keep 70% of profit money for further investment into the business and will pay the investor upto their investment money from rest 30%. 2013 December31.79.604) Tk . Payback Schedule June30.534 (30% of Tk 758.2014 Tk 227.15.When investor money will be completed than we shall go for investing into another segment.25.206 Tk 287.670) Tk (30% of 14.800 Tk 234.2013 June30. Bringing equity” Cross-Trend All Amounts are shown in Taka CROSS-TREND Payback period We shall payback our investor through our profit money.2014 December31.

) o Does Your Business Fulfill All 7 Principles of Social Business? How? Yes. Convert disables people into asset of the society from the liability of the society.000 (Per Month because these people could not do anything and people did not provide any jobs to them.000X10=Tk 100. Socially Recognized 2.  Social Impact Per Beneficiary × Number of Beneficiaries Tk 10. Economically Sound 3.  The young entrepreneurs are doing it with their joy and happiness.  Disable People will be financially and economically sound.  Investors will get back upto their investment money. Bringing equity” Cross-Trend 1. 4. Disable people can enjoy Independent Life.  The business is environment free.  Workforce will get a good market responds and as well as good working environment. .East Delta University 22 “Focusing humanity. our business will fulfill all the 7 principles of social business like  The main objective of the business is to overcome poverty and as well as make disable people into assets of the economy.

. Bringing equity” Cross-Trend o Long-term Business Strategy and Implementation: Our long term strategy is to implement our tag line that is “Focusing humanity. 3. Represent Bangladesh as a country of Hope and Inspiration towards the world.East Delta University 23 “Focusing humanity. Earning more foreign currency from jute business and enrich foreign currency of the Bangladesh. 2. Empowerment of the disable people in the society and as well as in economy. Bringing equity” through: 1.