Business Plan in

Bangladesh

Introduction

OBJECTIVES OF THE REPORT

METHODOLOGY

LIMITATIONS
 BUSINESS PLAN CONCEPTION
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This term paper focuses on Business Plan in Bangladesh and it defines all of the
procedure of business plan. In this term paper has reflected the new idea of
business plan in Bangladeshi prospective. The new business plan is important for
the every entrepreneurs of any economy. Business activity and the resultant
financial gain provide benefit to a country. If you want to make a effective
business plan then you will recognize a genuine opportunity when you come
across one.

1.1:Objectives of The Report

The purpose of this study is to provide greater understanding about a Business

plan with business idea. Now the some other objectives of the report are as
follows-

1. To understand about business plan.

2. All of the procedure of business.
3. To gather some experience about business plan.
4. To identify profit and loss situation.
5. To identify the key features of business plan.

1.2:Methodology

To accomplish this assignment we took help the secondary source, that is the
market survey of the people & we also help from the book & internet to
accumulate the data as a primary source.

1.3:Limitations

Completing this assignment, we face lots of problem with scope limitation. These
are:

Relevant future plan identity is too much critical.

Various restrictions of the areas.
Lacking of primary sources & important information.
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1.4:Business Plan Conception

The Business Plan is a written document, which is prepared by the entrepreneur

that describes all the relevant external and internal elements involved in starting
a new venture. It is often an integration of functional plans such as marketing,
finance, manufacturing, and human resource. It is sometimes referred to, the
game plan or road map- answers the questions, where am I going? How will I get
there? Potential investors, suppliers, and even customers will request or require a
business plan. One of the most important decision documents need for any
business plan. It is common practice for consultants, lenders, potential business
partners and other business associated individuals to request. Normally, a
business plan is a comprehensive set of guidelines for a new venture. A business
plan is to make a more informed decision concerning their relationship with a
business. However, business plans have many more benefits that are direct for
business owner. The planning process forces owners to systematically consider
all facts of the business. Lastly, a business plan is an outline of potential issues
to address and a set of guidelines to help an entrepreneur make better decisions.
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Company
Description

ORGANIZATION OVERVIEW

BASIC CONSIDERATIONS

DESCRIPTION OF THE BUSINESS

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2. 1: Organization Overview

Flashback is a new ongoing establishing business. Our major objective is to

make new environment friendly and quality product and service for consumer
with reasonable price. Henna is very popular in our country. There are many
different use of Henna in our country; especially for hair use, it is very effective.
Now we are trying to formulate a new brand shampoo and hair color, which is
made by Hennas ingredient.

Vision
In competitive business world, we want to be a strong brand of trust. To the
business viewpoints our one and only vision is to earn profit. However, we are
determining to follow the business ethics in our business and we should try to
maintain the environment and social responsibility.

Mission
Our mission is to provide the quality goods and services to our customers with
reasonable price. We understand the customer demand that is why we are going
match the consumer demand by quality goods. We are trying to formulate our
product to solve the customers hair related problem.

Goal
Our goal is to spread our business and expand several branches all over
Bangladesh & want to globalize our product.

Service Orientation
We are committed to serve our customers to fulfill their needs by focusing efforts
on discovering and thereby meeting stated and unstated requirements.

2.2:Basic Considerations

Our company offers best quality Shampoo and hair color with different packages
to customers at a very reasonable price. By using our Shampoo and hair color
they can easily find out the basic differences of the quality of the Shampoo and
hair colors comparing with other companies. Depending on the market
researchers information and considering the growing demand of detergent
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powder, we are going to launch a new product Henna Natural Shampoo and
hair color in the market. The marketing strategy of our company will be based on
a cost effective and quality service to each of its target segment. Our focus will
be on utilizing all of its resources effectively and efficiently to continually serve
its customers with satisfaction through producing best quality product. Our
marketing research department found the opportunity to provide our customers
a new facility using Shampoo and hair color. The industry already contains some
products. But we found that there is no Shampoo product containing the smell of
the Henna flavors. Our marketing research department surveyed the market and
found that there are many potential buyers for our product which will satisfy their
needs. So, we have the opportunity to enter the market and fulfill the gap. We
are going to offer the smell of Henna to Shampoo and hair color with a very
reasonable price so that customer can easily select it to use.

2.3:Description of the Business

Size of Business:
Our factory will be establishing around 30 decimal spaces which price will be
around Tk. 4,000,000. For the office purpose we choose shyamoli which outlet
will be 2000 sq feet. We will allocate the space to decorate with the product
shelves, freezes, beverage vending machines, cash counter in a specific manner
that portrays the commitment, and delicacy of our shop. We will have an office
and a store keep our stock inventories along with outlet. The total rental expense
for the whole business will be around Tk. 30,000 per month. However, for the
business our prime concern will be the security because at night in Bangladesh
the crime rate is very high. Therefore, we have decided to have CCTV
surveillance and security lock.

Factory:
We select our factory location in Savar, Dhaka. Savar is the part of Dhaka district
where we can get the best transportation facilities as well as cheap land for our
factory place. There we should get the available labor force with lower price. In
Savar local area we should get a huge market for our product and thats why we
dont have to hire any distributor for that area. Other hand we should get the
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local political support from that area as a Bangladeshi company and as a native
of that area.

Office:
We select our head office in Shymoli, Rupayan Tower Khilji road, Shymoli,
Dhaka. It is very good location for our office. We select our office in 4 th Floor of
Shymoli Rupayan Tower. Our office space is 2000 square feet and its monthly
rental expense is 30,000.00Tk.
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Industry
ANALYSES

SWOT ANALYSIS

PEST ANALYSIS

RISK ASSESSMENT

CRITICAL ISSUES
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3.1:SWOT ANALYSIS

SWOT analysis is based on strength, weakness, opportunity, threats. Our

research and Development (R&D) department found some major strength and
weakness for both the new product Henna Natural shampoo & Henna Natural
hair color of the company. According to the R&D department the SWOT analysis
of the product is described below-

Strengths:

As a new company, we have some strength in the market. This are-

We will strong relationship with suppliers that offer credit arrangements, flexibility
and response for any new product of our company.
We take excellent, stable and trained staff for customer service.
Skilled employee in marketing department for the promoting the product.
Totally new feature in the shampoo industry.
We have total quality management for our product.
Good relationship with companys suppliers, partners and customers.
High quality machineries and raw materials.

Weaknesses:

We also have some weakness in the market. This are-

New environment for the company as because first time lunching product in the
market.
Lack of community support so far because we have not had any formal and informal
communication with any political leader of the community.
Less product classification.
No existing product, thats why we cannot be used existing channels

Opportunities:

We also have some opportunities in the current market situation.

Completely new strength in Shampoo and hair color market.

High growth rate in our target market.
Continuous opportunities ahead through strategic alliances and market activities.
Attractive packets can be our opportunity.
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E-mail and mobile communication will make our order and supply much easier for
the product.
Increasing market share may increase the sales of the product beyond our expectation.

Threats:

When we started new business then we faces some threats. This are-

Other competitors of shampoo and hair color companies have a high market share in
the shampoo and hair color market. This company may be able to become threat for
us by introducing new product like ours.
Economic, political and technological factors of the country may be threatening for
our product.
New entry of similar shampoo and hair color company after the lunch of our product
and can offer shampoo and hair color product extra feature with very little price to
beat our price.

Keys to Success

The key to success of this product are-

Experienced and eye catching advertisement on most of the areas

of the country.
Proper channel distribution.
Proper Customer Relationship Management (CRM).
Proper Supply Chain Management (SCM)
Generating average sales in excess of Tk. 2,31,248 per business
day.
Online News and Advertisement.

3.2:PEST ANALYSIS
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Political Factors

In Bangladesh, our political situation is not so good suffers. This is a major

drawback for starting new business in our country. So, we trying to keep a good
relationship with the government and political person.

Employment laws will definitely be favorable in terms of dealing with the

employees.

Political instability of our country might be a serious problem as far as the supply
transportation is concerned. So, we will cared about this.

Economic Factors

Bangladesh is started as newly emerging economy. Now-a-day Many new

venture are emerging with high potentiality. Our target customers will very much
appreciate such new venture. So, it will be challenge for me.

As we have decided to take loan, so we need to be concerned about the interest

rate. It will be help to earn more profit to our company.

As the fluctuation of inflation rate is high in our country so it could cause

negative effect on our business. So, we are concern about this.

Social Factors

As Bangladesh is turning into a very fast paced life-style, people wish to have a
store around the corner where will find this product. Thats why, we will
distrributed our product in largely and also for the mass people.

Moreover the new generation intends to buy new product with new feature in the
markety. So this new type of products will created a new hype among them.

Technological Factors

Basically we are using most modern technology to ensure quality service to our
customers.

However, in case of cash processing and inventory we would be depending on

technology; so further improvement in these sectors might increase our
efficiency and profitability as well.
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3.3:RISK ASSESSMENT

Product Risk

Demonstrating product features reveals a limited market driven functionality

after scaling product production.

Action Plan:

Develop production prototype.

Determine production process
Select equipment Design field support system
Demo product features

Market Risk

The reality of the market is rarely as planned. Market acceptance and competitor
response may be different than anticipated. Limited repeat business can cause
uncertainty

Action Plan:

Establish market relationships

Conduct limited sales
Analyze sales
Survey customers
Refine marketing plan

Business Risk

Lack of focus as the company moves from a emerging environment to a true

business mode of operations.

Action Plan:

Establish business function

Hire staff
Execute contracts
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Secure first-stage financing

Finance Risk

The burn rate exceeds capital and management tends to focus on safes rather
than profits.

Action Plan:

Focus on bottom-line profits

Eliminate costs and Implement fundraising strategy.

3.4:CRITICAL ISSUES

Both the shampoo and hair color product is the new and innovative idea for the
market. So that the company has to consider some critical issues, which are as
follows-

The products sales growth will be slow for first six months in the very first
year of their operation. Thus the company has to hold the products
position for first 6 month, which is admirable.
As the product is new in the market, it will take too much time to stay in
the heart of the consumer and the beginning consumers will be
innovators. Thus attractive and effective marketing will be needed to
attract, grow, and retain the customers.
The marketing objectives will be to create product awareness and trial.
The company must use heavy sales promotion to entice trial that is matter
of investing huge amount of money.
The products cost per customer will be high, as the product is lunching
initially. For sustaining in the market, we will less profit in the first time.
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Market
ANALYSIS

Potential Market share of Flash

Back

Henna Natural Shampoo

Market share of the Existing

Company

Henna Natural Hair Color

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4.1:Potential Market share of Flash Back

Our potential market share is the sort of existing market. There are lots of
consumers who require herbal products for their hair but as they are not getting
it properly which can satisfy them by meeting their latent demand.

4.2:Henna Natural Shampoo

Our major competitors for shampoo in the market are All clear Men, Sun silk,
Dove, Pantene and Head & solder. Table 1.2 shows the major competitors in the
market and the price of their product.

4.3:Market share of the Existing Company

All clear:

All Clear Men is the dominating this sector. It is a product of Unileaver

Bangladesh Ltd. Company. It used by 40% people of total market in the basis
on our survey. This competitor does spend much money in advertising activities
but it lacks the quality and they have no all the feature of customer demand. All
Clear is a synthetic Shampoo product. It produced by Water, sodium, laureth
sulfate, menthol, DMDM hydraulic, sodium hydroxide, ammonium lauryl sulfet,
carmbola fruit extra, dimethicone, guar hydroxypropyltrimonium chloride, zinc
sulfate, seed oil, lysine HCI, CI 42090, CI47005. It can clean hair and cool hair
very well but it does that very roughly. The target market of the all clear
shampoo is the middle class people.

Dove:

It is another product of Unilever Bangladesh Ltd. Dove shampoo has a very

small market share in the market. It is trying to achieve a good market share. It
has a positioning statement that it produced by Water, Ammonium Laureth
Sulfate, Ammonium Lauryl Sulfate, Dimethicone, DMDM hydraulic, sodium
hydroxide,Cocamide MEA, Fragrance, Disodium EDTA, Averrhoa Carambola Fruit
Extract, Carica Papaya Fruit Extract, Trimethylolpropane CI 15985, CI 19140. It
used by 5% people of total market in the basis on our survey. The target market
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of the Dove shampoo is the higher class people. We hope that our product will
draw the attention of the user of the product and it will have distinctive
advantage in our customers mind.

Sunsilk:

Sunsilk also a product of Unilever Bangladesh Ltd. It is trying to achieve a

good market share. This competitor does spend little money in advertising
activities because the target market of the sunsilk shampoo is the low and
middle class people. It used by 20% people of total market in the basis on our
survey. We will take a good competitive advantage by providing extra features
and conveying the massage to the customers.

Pantene:

Pantene Pro-vitamin shampoo has a very significant market share in our

shampoo market. It used by 30% people of total market in the basis on our
survey. The target market of the Pantene pro-vitamin shampoo is the all class
people especially for the women people. Even then, we will be careful about
every competitor that exists in the market.

Table 1.1: Selected Competitors and its price for Shampoo

Name 400ml(Tk.) 200ml(Tk.) 100ml(Tk.) 5ml(Tk.)

All Clear men 270 150 85 3

Dove 320 170 95 3

Sunsilk 225 140 70 2

Pantene 270 150 85 3

Garniar 350 185 100 3

Henna Natural 300 160 85 3

Source: Data collected from products packet and salesperson.

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Table 1.2: Flavor categories for Shampoo

Competito Anti Fair fall Smooth Long & Cooling Herba

r Dandr defense & Shiner strong Hair l
uf hair

All Clear

Dove

Sunsilk

Pantene

Garnier

Henna
Natural

Source: From beauty shops.

4.4: Henna Natural Hair Color

Our major competitors in the hair color market are Garnier, Super speed,

Speed-3. Table 1.3 shows the major competitors in the market and the price of
their product.

Garnier:

Garnier is the dominating this sector. It used by 50% people of total market in
the basis on our survey. This competitor does spend much money in advertising
activities. They offering high quality, easy-to-use hair color products with the
most beautiful color results possible, Garnier hair color formulas are enriched
with pure, natural ingredients to help protect and nourish your hair. We combine
true color creativity with unique, cutting edge technology. Intense, natural, subtle
or bright, Garnier hair colors will satisfy your every coloring wish. But it has some
quality problem with high price and they have no all the feature of customer
demand. Garnier is a synthetic hair color product. The target market of the
Garnier hair color is the middle class and higher class people.
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Super Speed:

Super Speed hair color is a very significant market share in our hair color market.
It used by 20% people of total market in the basis on our survey. The target
market of the Super Speed hair color is the all class people especially for the hair
salon. In this product will not our market competitor but we will be careful about
every competitor that exists in the market.

Speed-3:

Speed-3 hair color is trying to achieve a good market share. This competitor does
not spend more money in advertising activities because the target market of the
Speed-3 hair color is the low class people. It used by 10% people of total market in
the basis on our survey. We will take a good competitive advantage by providing
extra features and conveying the massage to the customers.

Table 1.3 Selected Competitors and its price for Color

Name 400ml(Tk.) 200ml(Tk.) 100ml(Tk.)

Garnier 270 150 85

Super Speed 320 170 95

Speed-3 225 140 70

Henna Natural 240 130 70

Source: Collected from product packet and salesman

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MARKETING
PLAN

Product Description

Henna Natural Shampoo

Henna Natural Hair Color

Advertising and Promotion

Price Determination

Distribution Strategy

Target Customers
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Product Strategies

Product Life Cycle

Pricing Strategy

Distribution Strategy

Marketing Communication Strategy

Marketing Mix

Product marketing

Pricing

Promotion

Service

Marketing Research
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5.1:Product Description

As the consumers demands and lifestyles changes over time and new
manufacturing processes become available, the shampoo and hair color industry
responds with new products. Because cosmetics products became the part of our
everyday lives, it is essential that they do not present a significant risk to our
hair. However, they are loaded with potentially toxic chemicals which are harmful
for our environment and also for our health. In our project we have observed
different concentrations of shampoo and hair color on hair and have seen how
shampoo and hair color harms to our hairs day by day and at last we face
different types of skin & hair problems. We also repeated this experiment with a
Henna natural shampoo and hair color which shows the opposite effect of
shampoo and hair colors. Therefore, it will better for our company.

5.2:Henna Natural Shampoo

Henna Shampoo is the new concept in Bangladesh. People use henna for
different purpose especially for hair use is very popular and effective. For that
reason it has huge market demand based on our market survey but this product
is not available in market. Thats why; we closer look to Henna Natural Shampoo
as solution. We will try to fulfill the customers demand by our product Henna
Natural Shampoo to solve the hair related problem.

5.3:Henna Natural Hair Color

Henna hair color is an existing concept in Bangladesh. It has huge demand in

market so we decide to produce this product by thinking the market demand.
Thats why; we closer look to Henna Natural Hair Color as for our customer. We
think that Henna Natural Hair Color will create the good market for us as well as
fulfill the customers demand.

5.4:Advertising and Promotion

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For the Henna Natural Shampoo and hair color we will choose most successful
advertising channel which will be through NTV, Channel I, ATN Bangla and RTV,
which are the most popular television channels in the country. We will also use
some bill-boards and leaflets and we will hold a sport event for the young
generation to promote the product. May be, we can use cellular operator in our
marketing through their push sms service.

The most successful advertising and promotion has been through the following:

Sales Promoters recruit

Newspaper Advertisement: The Prothom-Alo, the Janokantho, the Jugantor, the Daily
Star, the Independent etc.
Television Advertisement:, ETV, BTV, NTV, ATN etc.
Radio: Bangladesh Beter, Radio Furti, Radio Today, Radio Amar etc.
Leaflets: Distribution about the product in different areas.

5.5:Price Determination

The Company established the price of its new product Henna Natural Shampoo
& Hair Color with the concept from cost based pricing. According to our
calculation the cost of shampoo is 5ml-Tk 2.33, 100ml-Tk 60, 200ml-Tk 119,
400ml-Tk 230 and we set our selling price 5ml-Tk 3, 100ml-Tk 85, 200ml-Tk 160,
400ml-Tk 300.

5.6:Distribution Strategy

We will primarily use our own distributors for distributing our new product
Henna Natural Shampoo & Hair Color. Then, we will make some new channels
and assign some new distributors to promote our new product to all over the
county. Our product will be distributed through a network of retailers in the first
year. We will have good partner relation management. We will try our level best
to satisfy our supplier along with the customer. If the suppliers are not happy
then they will not co-operate our customer and that will be a failure for the
company. Among the most important channel partners being contracted are-

We distribute our product through seven of our representative in seven divisions.

We will have 64 sells agent in sixteen different districts.
We will buy an own delivery van to transport the product.
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Some cases we will use the railroad and the river to transport our product.

Our sales agent will distribute the product to the retailers.

We keep it in some mega shops like Agora, Meena Bazer, Nandon, Mega consumer
Shop, PQS etc.
We plan to distribute our product according to demand of the product. In the first year we
emphasize trade sales promotion.

5.7:Target Customers

Our target markets are separated into four segments. The segments are Upper-
class, Upper-middle class, middle-lower class and lower class. The segment
details are as follows-

Upper-class: Upper-class is a portion of the population. According to our marketing

investigators, Upper-class is the major consumer of both the shampoo & hair color.
They like different kind of shampoo and hair color. They want good quality product
whatever price.
Upper-middle class: There is a large portion of the population occupied by the
bachelor people. Upper- middle class people are our one of our potential customer to
serve. They want good quality product with low price.
Middle-lower class: Middle-lower class is another portion of the population. Middle-
lower class is most careful and sophisticated consumer but most concern about the
price and the quality. So, targeting the middle-lower class is also one of our effective
decisions.
Lower class: Lower class is a portion of the population. They are most concern about
the price. They dont given more emphasize on the utility of the product.

5.8:Product Strategies

The Henna Natural Shampoo and hair color, including all the features described
in the earlier product review will be sold to the market with a huge marketing
effort. The brand and the logo will display on the product and its packaging and
reinforced by its prominence in the introductory marketing campaign. We will
have opinion leaders in the market to convince people to use our product

5.9:Product Life Cycle

Introduction:
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In this stage of our products life cycle, sales are expected to be medium. On the
other hand cost per customer will be high. So, in this stage, we will use cost-plus
pricing. Distribution will be selective; to well-known mega shops and retailers. We
will use heavy promotional activities; advertising, personal selling and try to
build product awareness among early adopters.

Growth:

In this stage, both sales and profits of our product are expected to rise rapidly. To
penetrate the market, we will try to reduce cost per unit by producing more
units. Growing number of both customers and competitors are expected in this
stage. We will try to maximize our market share by building intensive
distribution. In this stage, we will reduce the promotional activities and will
conduct market survey research to know consumer demand.

Maturity:

We expect to have our highest profit in this stage. Peak sales will occur as a
result of low cost per customer. Majority of the target consumers are expected to
use our shampoo and hair color in this stage. Our objective will be maximizing
profits while defending market share. In this stage, we will start to introduce our
other brand that is Active detergent power with feature of Ritha. We will set
the price to match or beat competitors. Distribution strategy will be more
intensive, that is consumers will be getting our product more easily in nearby
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stores. Advertising activities will stress brand differences and benefits. Finally we
will increase promotional activities to encourage brand switching.

Decline:

In this stage of our product life cycle, both sales and profits will be declining.
Cost per customer will be low, as we will reduce our expenditures. We will also
phase out weak items that are unprofitable. Price will be cut off and promotional
activities will be reduced to a minimal level. In this stage, we will again go for
selective distribution. Finally, advertising activities will be reduced to level
needed to retain loyal.

5.10: Pricing Strategy

The Company established the price of its new product Henna Natural
Shampoo & Hair Color with the concept from cost based pricing. According to
our calculation the cost of shampoo is 5ml-Tk 2.33, 100ml-Tk 60, 200ml-Tk 119,
400ml-Tk 230 and we set our selling price 5ml-Tk 3, 100ml-Tk 85, 200ml-Tk 160,
400ml-Tk 300.

5.11: Distribution Strategy

We will primarily use our own distributors for distributing our new product
Henna Natural Shampoo & Hair Color. Then, we will make some new
channels and assign some new distributors to promote our new product to all
over the county.

5.12: Marketing Communication Strategy

For the Henna Natural Shampoo and hair color we will choose most successful
advertising channel which will be through NTV, Channel I, ATN Bangla and RTV,
which are the most popular television channels in the country. We will also use
some bill-boards and leaflets and we will hold a sport event for the young
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generation to promote the product. May be, we can use Grameen Phone in our
marketing through their sms service.

5.13: Marketing Mix

Our marketing mix for the new product Henna Natural Shampoo and hair
color is as follows:

5.14: Product marketing

Our product will enable our customers to have a different experience to test in
using Shampoo and hair color. They will be able to differentiate our product in
quality which is unique in the Shampoo and hair color market. They will not be
able to feel the same way for the other Shampoo and hair color in the market.

5.15: Pricing

In the current market of Bangladesh, there is a number of Shampoo and hair

color products exist. Through the market research we have revealed that most of
the shampoo products price is Tk140 to Tk170 for the 200ml except Garnier
which price is Tk185.

5.16: Promotion

The most successful advertising and promotion has been trhough the following:

Newspaper Advertisement: The Prothom-Alo, the Janokantho, the

Jugantor, the Daily Star, the Independent etc.
Television Advertisement: Channel I, ETV, BTV, NTV, ATN TV & Chanel 1
etc.
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Radio: Bangladesh Beter, Radio Furti, Radio Today, Radio Amar etc.
Leaflets: Distribution about the product in different areas.

5.17: Service

The first goal is to recognize everyone as they come into the store. If they are a
repeat customer, they are referred to by name. Our store will be staffed with high
energetic sales persons who will dedicate their most of the time to customers
that want assistance when they need it. The store is designed so a customer can
look at our products.

5.18: Marketing Research

Our company offers best quality Shampoo and hair color with different packages
to customers at a very reasonable price. By using our Shampoo and hair color
they can easily find out the basic differences of the quality of the Shampoo and
hair colors comparing with other companies. Depending on the market
researchers information and considering the growing demand of detergent
powder, we are going to launch a new product Henna Natural Shampoo and
hair color in the market. The marketing strategy of our company will be based on
a cost effective and quality service to each of its target segment. Our main focus
will be on utilizing all of its resources effectively and efficiently to continually
serve its customers with satisfaction through producing best quality product. Our
marketing research department found the opportunity to provide our customers
a new facility using Shampoo and hair color. The industry already contains some
products. But we found that there is no Shampoo product containing the smell of
the Henna flavors. Our marketing research department surveyed the market and
found that there are many potential buyers for our product which will satisfy their
needs. So, we have the opportunity to enter the market and fulfill the gap. We
are going to offer the smell of Henna to Shampoo and hair color with a very
reasonable price so that customer can easily select it to use.
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MANAGEMENT
team &
company
structure

Personnel Recruitment

Identification of Partners

Organizational Hierarchy
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6.1: Personnel Recruitment

There will be five departments are Accounting & Finance, Human Resource
Management, Marketing & Sales, Management Information System and
Management & Security department and people will be recruited to work in our
Flash Back.

Personnel Requirement Chart

Accounting & Finance No. Human Resource No.

Management

Director 1 Director 1

Executive 2 Executive 2

Assistant 5 Staff 5

Subtotal 8 Subtotal 8

Marketing & Sales No. Management Information No.

System

Director 1 Director 1

Executive 9 Executive 2

Assistant 15 Staff 2

Sales Man 35 Assistant 5

Sub total 55 Sub total 10

Management & Security No

Director 1

Security Head 3

Staff 20

Sub total 24
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6.2: Identification of Partners

Name Designation

Shahriar Kabir Managing Director

Mr. Imran Al Arefen Director of Accounting &Finance

Mr. Zakir Hossain Director of HRM

Mr. Abdullah Al Masum Director of MIS

Mr. Mokter Hossain Director of Marketing

Mr. Helal Uddin Director of Operation Manager

Accounting & Finance: The Director for Accounting & Finance is responsible for all
the key issues of finance. He takes all the financial decisions of the company. He has
one assistant director to help him to make the financial reports and decisions. There is
some finance executive to gather information and analyzing. Salaries and bonus
schemes of the company are described in the financial part of the plan.
Marketing & Sales: The Director for marketing and sales department is the main
man for the marketing and sales of our company. His first job is to promote the shop
in the initial period. As we will not have that much of marketing campaign in the first
three years, therefore at present his first concern is to acquire sales contract with the
manufacturers for the management. He has an assistant director to assist him and
designated marketing and sales manager and sales and marketing executives to help
him.
Human Resource Management:
Human resource director controls the manpower of the company. His duty is to
operate the store manager of the shops responsible for recruitment of new employees.
 Page 32 of 49

6.3: Organizational Hierarchy

Managing Director (MD):

Managing Director is the key person of the whole management team. He is
responsible for all the managerial decisions that needed to be taken. He takes
information from the directors of various departments to take necessary decisions.
Directors: Directors are the senior most people in the organ gram department-wise.
There are four basic departments. Their hierarchies are described below.
Executives: The person who will be accountable and responsible for their
accomplishment of the specific task to managing Director as well as they will have
good relationship with upper and lower level employees.

As others organization, we will follow the organizational hierarchy as follows-

 Page 33 of 49

Production
PLAN

Production with HENNA

Why we choose this product?

Raw Materials Collection

How we use in our country

How we use in our country

Maintenance & Servicing

Equipments & Machinery

 Page 34 of 49

Quality control

7.1:Production with HENNA

Henna (Lawsonia inermis) is a flowering plant used since antiquity to dye skin,
hair, fingernails, leather and wool. The name is also used for color preparations
derived from the plant, and for the art of temporary tattooing based on those
colors. Additionally, the name is misused for other skin and hair dyes, such as
black henna or neutral henna, which do not derive from the plant. Nowadays
people are facing huge hair related problem like hair fall, Dandruff, Skin problem
etc. To think about that problems we are decide to launch new shampoo made by
Henna. Henna is very popular & effective solution of any hair related problem &
it is a Herbal product. Henna is a very familiar to people, which has great
acceptance in local & international market. Bangladeshi people are very
festivals. In all festive and occasion people use Henna. Henna is very popular in
our country and it use in very purpose especially in hair, people believe that
henna is very effective in use in hair. In our country people are using shampoo
regularly, if people get Henna shampoo they should feel more interest to use
Henna shampoo. Nowadays people are facing huge hair related problem like hair
fall, Dandruff, Skin problem etc. To think about that problems we have decide to
launch new shampoo by Henna. Henna is very popular & effective solution of any
hair related problem.

7.2:Why we choose this product?

Nowadays people are facing huge hair related problem like hair fall, Dandruff,
Skin problem etc. To think about that problems we are decide to launch new
shampoo by Henna. Henna is very popular & effective solution of any hair related
problem & it is a Herbal product. Henna is a very familiar to people, which has
great acceptance in local & international market.

7.3: Raw Materials Collection

Henna is available in everywhere in our country but it is not enough for our
production for that reason we have to collect the raw materials from India and
 Page 35 of 49

Pakistan. In that case we deal with some Pakistani and Indian company which
they supply henna raw material in their own cost. We also go to cultivate the
henna in our country which will be 40% of the total raw materials.

7.4:How we use in our country

Bangladeshi people are very festivals. In all festive and occasion people use
Henna. Henna is very popular in our country and it use in very purpose especially
in hair, people believe that henna is very effective in use in hair. In our country
people are using shampoo regularly, if people get Henna shampoo they should
feel more interest to use Henna shampoo.

7.5:Maintenance & Servicing

The first goal is to recognize everyone as they come into the store. If they are a
repeat customer, they are referred to by name. Our store will be staffed with high
energetic sales persons who will dedicate their most of the time to customers
that want assistance when they need it. The store is designed so a customer can
look at our products. We provide service in a way that no other competitive retail
store can touch. It is one of our greatest assets and points of differentiation.
Insight, ideas, inspiration, and fun are the goal. Repeat, high dollar purchases
from loyal customers are the desired end product.

7.6: Equipments & Machinery

Based on our Factory & Office area we need search Light, Tube light, Green & red
color light for showing the positive & negative area in the night. We need
computer in the every department because of the employees work need. Then
we need chair, tables for the every people who engage in this company & for the
guest need sofas. Then for the good environment of the office & work place we
should ensure the AC & FAN on the basis of the area. Then we should ensure the
worker security & companys security instrument. For the factory need we should
ensure the fast Aid box & the Medical facilities.

The diagram below shows the overall plant of FlashBacks sites at Shamoli &
Amin Bazer. In this page we will show the internal environment of the office &
factor.
 Page 36 of 49

7.7: Quality control

All of our administrative members are planning to measures to closely

monitor quality and customer service satisfaction to achieve our goals.
This planning will enable us to very quickly in correcting any problems
that may occur. Other early warning signals that will be monitored for
sings of deviation from the plan include monthly sale and Monthly
expenses.
 Page 37 of 49

Financial
Projections
Project Cost

Sources of Finance

Cost of goods Sold

Operating Expenses

Working Capital Requirements

Projected Income Statement

Projected Cash Flow Statement

Projected Balance Sheet

Ratio Analysis Report

8.1:Project Cost
 Page 38 of 49

Flashback Private Ltd will start with an initial TK. 89,400,000 investment to get
the company going. Our projected cost is given below:

8.1.1. Project Cost

Particulars Taka

Land and land development 4,000,000.00

Factory Building 4,000,000.00

Machine 8,000,000.00

Delivery Van 4,000,000.00

Furniture 1,000,000.00

IT Equipment 1,000,000.00

Pre-operating Expenses 2,000,000.00

Contingency 400,000.00

Advertisement 60,000,000.00

R&D 5,000,000.00

Total Cost 89,400,000.00

8.1.2. Sources of Finance

Owner Equity 70,000,000.00

Bank Loan 15% 20,000,000.00

Total 90,000,000.00

100000 share 100 per share

IPO after 5th year

8.1.3. Cost of goods Sold

1st year 2nd year 3rd year 4th year 5th year

Production valume 126000 226800 239400 252000 283500

labor cost 1,996,80 2396160 2875392 3450470 4140564.

 Page 39 of 49

0 .4 48

10,400,0 12,480,0 14,976,0 17,971,2 21,565,4

over head 00 00 00 00 40

31,500,0 56,700,0 59,850,0 63,000,0 70,875,0

materials 00 00 00 00 00

machine 800,000 800,000 800,000 800,000 800,000

44,696,8 72,376,1 78,501,3 85,221,6 97,381,0

Total 00 60 92 70 04

8.1.4. Operating Expenses

1st 2nd 3rd 4th 5th
YEAR YEAR YEAR YEAR YEAR

Office rent 360,000 360,000 360,000 360,000 360,000

3,000,00 3,600,00 4,320,00 5,184,00 6,220,80

Employees 40 0 0 0 0 0

Product diversification 100,000 120,000 144,000 172,800 207,360

4,800,00 5,760,00 6,912,00 8,294,40 9,953,28

Officers 20 0 0 0 0 0

12,000,0 14,400,0 17,280,0 20,736,0 24,883,2

Promotional Activity 00 00 00 00 00

12,000,0 12,000,0 12,000,0 12,000,0 12,000,0

Advertisement 00 00 00 00 00

transportation 100,000 120,000 144,000 172,800 207,360

suppliers 120,000 144,000 172,800 207,360 248,832

32,480, 36,504, 41,332, 47,127, 54,080,

Total Cost 000 000 800 360 832
 Page 40 of 49

8.1.5. Working Capital Requirements

1st 2nd 3rd 4th
Items year year year year 5th year

3,150,00 5,670,00 2,992,50 1,890,00 1,417,50

Raw-materials Goods 0 0 0 0 0

2,234,84 3,618,80 1,570,02 1,704,43 1,947,62

Finish Goods 0 8 8 3 0

5,384,8 9,288,8 4,562,5 3,594,4 3,365,1

Total inventory 40 08 28 33 20

Account receivable 8,324,9 22,477, 25,959, 27,913, 31,732,

10% 36 328 110 021 698

2,000,0 2,000,0 2,000,0 2,000,0 2,000,0

Cash hand 00 00 00 00 00

15,709, 33,766, 32,521, 33,507, 37,097,

Total current asset 776 136 638 455 818

Accounts payable 13,409, 21,712, 23,550, 25,566, 29,214,

30% 040 848 418 501 301

Working Capital Loan 2,300,7 12,053, 8,971,2 7,940,9 7,883,5

-Short-term 36 288 20 54 17
 Page 41 of 49

8.1.6. Projected Income Statement

Particulars 1st year 2nd year 3rd year 4th year 5th year

83,249,3 149,848,8 173,060,7 186,086,8 211,551,3

Net Sales 62 51 32 09 19

44,696,8 72,376,16 78,501,39 85,221,67 97,381,00

Cost of Goods Sold 00 0 2 0 4

38,552, 77,472,6 94,559,3 100,865, 114,170,

Gross Margin 562 91 40 138 315

32,480,0 36,504,00 41,332,80 47,127,36 54,080,83

Operating expenses 00 0 0 0 2

Profit before Interest 6,072,5 40,968,6 53,226,5 53,737,7 60,089,4

and Tax 62 91 40 78 83

3,391,12
Interest Expenses 5 5,019,774 4,462,146 4,248,272 4,193,970

2,681,4 35,948,9 48,764,3 49,489,5 55,895,5

Profit before Tax 37 17 94 06 13

11,179,10
Taxation 20% 536,287 7,189,783 9,752,879 9,897,901 3

2,145,1 28,759,1 39,011,5 39,591,6 44,716,4

Profit after tax 49 33 15 05 10

Profit distribution
ownership 20% 429,030 5,751,827 7,802,303 7,918,321 8,943,282

Profit distribution worker

20% 429,030 5,751,827 7,802,303 7,918,321 8,943,282

Social Development 5% 107,257 1,437,957 1,950,576 1,979,580 2,235,821

Total distribution 12,941,6 17,555,1 17,816,2 20,122,3

profit 965,317 10 82 22 85

Retained Profit before 1,179,8 15,817,5 21,456,3 21,775,3 24,594,0

reserve 32 23 33 83 26

Reassure Fund for

Business Expansion 4,745,25 6,436,90 6,532,61 7,378,20
30% 353,950 7 0 5 8

Retained Profit after 11,072,2 15,019,4 15,242,7 17,215,8

reserve 825,882 66 33 68 18

Retained Profit B/f 0 825,882 11,072,26 15,019,43 15,242,76

 Page 42 of 49

6 3 8

11,072,2 15,019,4 15,242,7 17,215,8

Retained Profit C/f 825,882 66 33 68 18

8.1.7. Projected Cash Flow Statement

Particulars Y-0 Y-1 Y-2 Y-3 Y-4 Y-5

Net profit 2,145,1 28,759, 39,011, 39,591,6 44,716,4

after tax 0 49 133 515 05 10
Adjustment
for:

15,440,0 15,440,0 15,440,0 15,440,0 15,440,00

Depreciation 0 00 00 00 00 0
Increase/
Decrease in 5,384,84 9,288,80 4,562,52 3,594,43
Inventory 0 0 8 8 3 3,365,120
Increase/
Decrease in
Accounts 8,324,93 22,477,3 25,959,1 27,913,0 31,732,69
receivable 0 6 28 10 21 8

Short term loan 2,300,73 12,053,2 8,971,22 7,940,95

repayment 0 6 88 0 4 7,883,517
Increase/
Decrease in
Accounts 13,409,0 21,712,8 23,550,4 25,566,5 29,214,30
Payable 0 40 48 18 01 1

17,440, 17,440, 17,440, 17,440,0 17,440,0

0 000 000 000 00 00
Net Cash from
Operating 19,585, 46,199, 56,451, 57,031,6 62,156,4
activities 0 149 133 515 05 10
 Page 43 of 49

Cash flow from Investing Activities

Purchase of 89,400,0
Fixed Assets 00 0 0 0 0 0
Sales of Fixed
Assets 0 0 0 0 0 0

89,400,0
00 0 0 0 0 0

Cash flow from Financing Activities

70,000,0
Share capital 00

Project Loan 20,000,0

(paid)/ received 00 195,229 224,514 258,191 296,920 341,457

Distribution 12,941,6 17,555,1 17,816,2 20,122,38

profit 0 965,317 10 82 22 5

4,745,25 6,436,90 6,532,61

Resurve 353,950 7 0 5 7,378,208
Net Cash Flow
from
Financing 90,000, 1,160,5 13,166, 17,813, 18,113,1 20,463,8
Activities 000 47 124 373 42 42

Net Increase /
( Decrease) in 600,00 18,424, 33,033, 38,638, 38,918,4 41,692,5
Cash 0 603 009 142 63 68
Add: Opening
Cash and Cash 18,424,6 51,457,6 90,095,7 129,014,2
Equivalent 0 0 03 12 55 18
Closing Cash
and Cash 600,00 18,424, 51,457, 90,095, 129,014, 170,706,
Equivalent 0 603 612 755 218 786
 Page 44 of 49

8.1.8. Projected Balance Sheet

Y-1(Tk) Y-2(Tk) Y-3(Tk) Y-4(Tk) Y-5(Tk)

Fixed Assets at Cost 89,400,000 89,400,000 89,400,000 89,400,000 89,400,000

Less: Accumulated
Depreciation 15,440,000 30,880,000 46,320,000 61,760,000 77,200,000

Net Value 73,960,000 58,520,000 43,080,000 27,640,000 12,200,000

100,220,03 116,667,98 128,175,53

Current Assets 32,734,379 80,643,916 7 4 3

Stock 5,384,840 9,288,808 4,562,528 3,594,433 3,365,120

Accounts Receivable 8,324,936 22,477,328 25,959,110 27,913,021 31,732,698

Cash 18,670,653 44,132,523 63,261,499 78,627,914 85,699,507

Bank 353,950 4,745,257 6,436,900 6,532,615 7,378,208

32,734,379 80,643,916 100,220,037 116,667,984 128,175,533

106,694,37 139,163,91 143,300,03 144,307,98 140,375,53

Total Assets 9 6 7 4 3

Share capital 70,000,000 70,000,000 70,000,000 70,000,000 60,000,000

Resurve for New 353,950 4,745,257 6,436,900 6,532,615 7,378,208

 Page 45 of 49

Business Expasion

Revenue Surplus 825,882 11,072,266 15,019,433 15,242,768 17,215,818

Equity 71,179,832 85,817,523 91,456,333 91,775,383 84,594,026

Project Loan 19,804,771 19,580,257 19,322,066 19,025,146 18,683,689

Current Liabilities 15,709,776 33,766,136 32,521,638 33,507,455 37,097,818

Accounts payable 13,409,040 21,712,848 23,550,418 25,566,501 29,214,301

Short Term Loan 2,300,736 12,053,288 8,971,220 7,940,954 7,883,517

15,709,776 33,766,136 32,521,638 33,507,455 37,097,818

106,694,37 139,163,91 143,300,03 144,307,98 140,375,53

Total liabilities 9 6 7 4 3

8.1.9. Ratio Analysis Report

Liquidity Ratios

1 Current Ratio 1st 2nd 3rd 4th 5th

Current assets / Current liabilities 2.08 2.39 3.08 3.48 3.46

2 Acid-test Ratio

(Current asset-inventory)/Current
1.74 2.11 2.94 3.37 3.36
liabilities

Net Working Capital to Sales

3 Ratio

(Current assets -Current

0.20 0.31 0.39 0.45 0.43
liabilities)/Sales

Profitability Ratios
4 Gross Profit Margin 1st 2nd 3rd 4th 5th

Gross Income /Sales 0.46 0.52 0.55 0.54 0.54

5 Net Operating Profit margin

Operating Income / Sales 0.07 0.27 0.31 0.29 0.28

 Page 46 of 49

6 Net Profit Margin

Net Income/ Sales 0.01 0.11 0.12 0.12 0.12

Activity Ratios
7 Inventory Turnover 1st 2nd 3rd 4th 5th

23.7 28.9
8.30 7.79 17.21
COGS/Inventory 1 4

8 Total Asset Turnover 1st 2nd 3rd 4th 5th

0
Sales / Total assets .78 1.08 1.21 1.29 1.51

9 Fixed Asset Turnover 1st 2nd 3rd 4th 5th

17.3
1.13 2.56 4.02 6.73
Sales/ Fixed Assets 4

CONCLUSION
In conclusion, we can see that, the product the company is going to
launch has a bright future in its market. As the product is innovative,
the consumers are going to appreciate it and according to the R&D
(Research and Development) department this product will be a strong
product mix for our company and once our Detergent Powder will
reach to the hand of every of our targeted customers. We can say that
Our business will be a profitable for us as well as for our customers when we can
organize it very carefully. The whole credit depends on the performance by us
and the performance of the teacher. The main thing is that in this plan we
consider only a few students for the first month as well as for the first year. It
depends on the management and the operation planning that how will they
 Page 47 of 49

increase the feasibility. The advertising is here a big factor if we fail to attract the
customer at the first time then it may be a problem. It is very sensitive issue so
we must continue the quality of the teaching. We have the plan to increase the
business with other area of Dhaka city.

We will provide service in a way that no other competitive retail store can touch.
It is one of our greatest assets and points of differentiation. Insight, ideas,
inspiration, and fun are the goal. Repeat, high dollar purchases from loyal
customers are the desired end product.
 Page 48 of 49

Reference
1. Abdin, M. J 2010, New Venture & Business Ideas to Develop in an Innovative Way,
SME Foundation, viewed 24 July 2013,
< http://www.hennaforhair.com/science/index.html >

2. Robert D Hisrich. (2004). Enterpreneurship, Six Edition, Vol. 18

(No. 2), pp. 333-346.

3. Berg, A., Hedrich, S., Kempf, S. & Tochtermann, T 2011, Herbal Products Solutions
to Develop , viewed 28 July 2013,
< http://www.yeabiz.com/pdfs/Importance%20of%20Entrepreneurship%20-
%20Justin%20Barker.pdf>

4. Entrepreneurship, Small Business and Lives of Successful Entrepreneurs, Second

Edition, Dr. A R Khan.

5. Donald E. Kieso. 1990, Accounting Principles, Eight Edition, Koht And Norbye
(eds).
 Page 49 of 49

Appendix
Trade association materials
Office Design: