North South University

SBE
Department of Management

Semester: SUMMER 2018

Course Code: MGT 368, Section: __ 9 ___

GROUP PROJECT

Done for:

Faculty: SAMUEL MURSALIN (SMM4)

Date: 03/09/2018

Marks obtained:

(This space is for faculty’s usage. Do not write here.)

GROUP DETAILS
Name ID
Md Asif Jamil 1420559030
Radoan Shikder Rimon 1431198630
Zobayeer Hossain Khan 1430223030
S. M. Shahriar 1410459030
Md Murshiduzzaman Joy 1330425030
Israt Jahan 1420144030
Tasnuve Himi 1230748030
Mehedi Hasan Tarif 1510924030
Letter of transmittal

3rd September 2018

Samuel Mursalin
Lecturer
Department of Management
North South University School of Business and Economics

Subject: Submission of business plan.

Dear sir,

This is the business plan report of “Pokaru”, a hypothetical start-up

business. This has been done as per the requirement of MGT 368
Entrepreneurship course which required the development of such a
business plan.
The knowledge and experience acquired in the undertaking of the report
has been extremely valuable, as well as the introduction and
implementation of concepts unknown to us. Completion of the project
within the stipulated time has been a real challenge and it had been
worthwhile all the way.
We hope to obtain your feedback as regarding the contents of the plan
and any suggestive corrections which you wish to provide. It has been a
real pleasure sir.

Sincerely yours
Md Asif Jamil
Radoan Shikder Rimon
Zobayeer Hossain
S. M. Shahriar
Md Murshiduzzaman
Israt Jahan
Tasnuve Himi
Mehedi Hasan Tarif

TABLE OF CONTENTS

INTRODUCTION..........................................................................................................................1
BUSINESS MODEL.....................................................................................................................2
BUSINESS ENVIRONMENT ANALYSIS..........................................................................4
DESCRIPTION OF VENTURE...............................................................................................7
PRODUCTION PLAN.................................................................................................................8
OPERATIONS PLAN.................................................................................................................11
MARKETING PLAN..................................................................................................................13
ORGANIZATIONAL PLAN.....................................................................................................14
ASSESSMENT OF RISK.........................................................................................................16
FINANCE PLAN..........................................................................................................................19
REFERENCES..............................................................................................................................25
INTRODUCTION

Name of business: POKARU

Location of business: Baraitala, Abdullahpur, Dhaka, Bangladesh
Name and address of the principals:
Md Asif Jamil 16, Block-F, Bashundhara R/A,
Dhaka.
Radoan Shikder Rimon 46, Mirpur 1, Dhaka
Zobayeer Hossain 45. Mirpur 1. Dhaka
S. M. Shahriar 9/A , Dhanmondi R/A, Dhaka.
Md Murshiduzzaman 49, Block D, Banasree, Dhaka
Israt Jahan 38, Shanti Nagar Road,
Shantinagar, Dhaka
Tasnuve Himi 14, Block-C, Bashundhara R/A,
Dhaka.
Mehedi Hasan Tarif Girza Road, North Badda, Dhaka

Nature of business
POKARU is an organic poultry and hatchery feed production business. It
is done through processing of organic waste by use of Black Soldier Fly
larvae which will be bred in house and the dead larvae processed to
make poultry and hatchery feed. Our primary target market is set to be
Gazipur, Abdullahpur and Narsigndi which is characterized by the
presence of many poultry and hatchery farms. In addition, our office will
be located alongside the factory at Abdullahpur. POKARU would be a
partnership business consisting of 9 partners with varying equity
contribution.
Statement of financing needed
The partners will be having a total contribution of BDT 30.5 lacs. And in
addition to that there is also an additional BDT 9 lacs contribution by an
Angel Investor, which brings a total equity investment of BDT 39.5 lacs.
The total startup cost has been estimated to be BDT 30.5 lacs, details of
which are provided below:

Startup Cost: in BDT

Production Assets 1,176,000

Shed and Building

Structure 500,000

Generator 50,000

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Egg Import 400,000

Licensing and
Hospitality 324,000

Cash on hand 600,000

Total startup cost 3,050,000

Statement of confidentiality of report

POKARU takes a radically different approach to industry standards in
producing poultry and hatchery feed. That is the business will be using
organic species in processing waste, and the former becoming poultry
and hatchery feed in the process. The business is aimed to reach its
target market segment with its offerings at affordable price point, and
catering to solidifying the distribution channel to get a strong hold of the
market segment. The business idea and the subsequent business plan is
developed for the “MGT 368 Entrepreneurship” course. Both parties
agree to not use this report for purposes other than that of this course.

BUSINESS MODEL

Business Model Canvas

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Key partners
We will import machineries, black fly eggs etc. our key partner include
government. Also, we are entering & will be competing in feed producing
industry, so the industry is directly or indirectly our key partner. As we
will be distributing through retailers & distributers, they are also our key
partners.
Key activities
Key activities of pokaru is importing black fly eggs, producing poultry &
fishery feed from larvae. Also maintaining the quality of feed.
Key resources
For kick starting pokaru we need minimal resources. Our key resource is
human as they will supervise and handle all the production function. And
machineries, packaging & capital.
Value proposition
The value proposition of pokaru is to provide natural poultry & fishery
feed free of chemical ingredients in a small price.
Customer relationship
Pokaru will keep in touch regularly with the final consumer of the
product and the distributors.
Channels
Pokaru will use only retailers & distributors of poultry and fishery feed in
targeted areas.
Customer segment
Initially, we will target the consumers of poultry and fishery owners of
Gazipur and Narsinghdhi. Then after 3 years we will expand all over
Bangladesh.
Revenue streams
Revenue will be earned from selling poultry & fishery feeds to
distributors.
Cost structure
Initially cost will rise from importing black fly eggs, machineries etc.
Then legal cost for trade license and export, license, cost of raw
materials and production, Shipping cost, Rent, Distribution expenses,
Utility costs, Logistic cost, Marketing costs, Insurance cost etc.

Social Goal
Social goal of pokaru is to provide low price natural feed to poultry &
fishery owners by using minimal resource. Also create employment

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opportunities. Waste management is a big concern for our country, by
using waste for black fly production the issue will be addressed
moreover. The poultry and fishery owners will get to use low price high
quality product which will lessen their cost and rise their profit. As a
result, social acceptance will increase.

Sustainability
Pokaru will reach sustainability when we will be able to provide value to
our customer in exchange to profit which will cover our cost. Initially our
target is to reach and retain customers. As we all know retaining
customer is better than new customer. Making customer aware of the
benefits of our product and motivating them to use our product will pave
the way to reach sustainability.

Eco-friendly
Pokaru is an eco-friendly venture. From input to output everything
consists of organic and natural resource. There is no carbon emission at
all. There is no use of chemical to produce our feed. Also, the leftover of
waste can be used as fertilizer. So, pokaru is adding more benefits to
environment rather than harming it.

Ethical
Pokaru is an ethical venture. There is no business unit which requires
unethical activities. Also, we make sure that our employees work in an
ethical work environment. And we are open to our consumer about
sharing information and helping them.

BUSINESS ENVIRONMENT ANALYSIS

Industry Analysis: porter’s five forces

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 Threat of New Entrants (Moderate): Gap between the
production and supply of feed is huge as standard intake and actual
intake of protein is not accurate in Bangladesh. But from a study it
has been revealed that 11% growth in poultry industry leads to 6%
GDP growth, so it is expected that the industry will grow very
quickly and that’s why the feed industry will also grow in a parallel
manner though these feed companies are capital intensive. But the
market size and number of customers are lucrative, moreover the
constraints of entering in the feed industry is very minimal, the
new entrants must face minimum technical or cost barriers.
Therefore, the threat of new entrants is moderate.
 Rivalry Among Existing (High): The feed industry has multiple
competitive players as the demand per month is approximately
240,000 MT and roughly met 50% from the top 7 producers. To
balance the production of feed they mix 25% at their farm and 25%
by smaller feed companies. Those smaller feed companies also
compete to get those contracts from the bigger companies.
Therefore, in a nutshell the rivalry among the existing is very high.
 Bargaining Power of Buyers (Moderately High): All well-
known companies are producing same kind of products, also the
price and quality is at similar range. So, the switching cost of the
buyer is low, and the brand loyalty of the industry is not very
strong. Moreover, we are selling organic product which is very new
in the industry and charging very low comparatively, but customers
have a lot of substitutes. So, the bargaining power of the buyers
are moderately high.
 Bargaining Power of Supplier (Moderate): In the feed industry
the companies usually import raw materials from China, India
which is approximately 60% of the actual raw material and rest of
them are from locals. And the price is very similar so the switching
cost moderate. But we are importing our raw materials from
Thailand and Indonesia and our raw material is black soldier fly
which is very different from other classic company’s raw materials

5
 so the bargaining power of the supplier in context of our company
is moderately high but overall in context of the feed industry it is
moderate.
 Threat of Substitute (Low): The chance of substitute is very low
in the industry. There are 130,000 poultry in rural areas, but they
are feeding their chickens, ducks, fishes the same products. There
are many poultry farms but still there is no proper substitute for
the feed. So, buyer must buy these products. So, the threat of
substitute is low.

Environmental Analysis: PESTLE

 Political factor: The political situation is quite stable in our

country and the rules, regulation and constraints regarding export
and import are minimal. But sometimes unexpected situation might
happen like strike, road blockade. These issues can hamper the
production and in long run the supply chain mechanism. The
government also have set some regulatory instrument such as
quality assurance, taxation, rates of return etc. so we must follow
these instruments moreover we will import our raw materials once
from Thailand or Indonesia after that we will grow the black soldier
fly by ourselves so there will be no hassle regarding importing.
Therefore, we can state the political situation is favorable.
 Economic Factor: Recently Bangladesh is having a strong
economic growth which is approximately 6-7%. Furthermore, the
inflation rate, interest rates are not increasing for past years. And
as we are importing from Thailand and Indonesia, so it would be
beneficial for us as these are also Asian countries. The barriers will
be less. The foreign exchange rate is also stable it doesn’t fluctuate
frequently so we can say the economic situation of Bangladesh is
favorable.
 Social Factor: As most of the poultry farm is in the rural area so
our target customer will be conservative individuals who would be
very conscious about the social norms, values and other factors. As
our product is new in the market so we must make them educate
first about the product and while advertising our products we must
push it in a certain technique that can emotionally affect the
buyers. Other than that, socials factor okay if we are not making
any fuss with our culture.
 Technological Factor: Technological advancement can boost a
company’s profit quickly. With upgraded technology less human
resource is needed and numbers of errors lessen up. Bangladesh is
becoming technologically advance. Most of the companies are now
technology based and the feeding industry is not behind. So, we
can state that the technological factor is favorable.
 Legal factors: The “mercantile law” comprises law regarding
trade, industry, and commerce. This ever-growing branch of law
can be changed by the circumstances of trade and commerce. The

6
 scope of the mercantile law is widened up so much with the
complexities of the modern business world. It includes the laws
concerning sales, partnership, companies and arbitration. There is
another law named “labor law” where any company cannot make
an underage person work. As our most of the production work will
be done by machineries so we would need very specific number of
labor and we are very much precise about choosing our employees
so there will no chance of hiring any child for our company. There
are some taxation laws which may affect our costing but other than
that everything is under our favor.
 Environmental Factor: The whole production process of our
business is very environmentally friendly. Our project will not harm
the environment rather we are making the environment less
polluted by feeding the wastage to the black soldier fly. Moreover,
any natural resources will not get affected by our production
techniques. So, this factor is also favorable.

SWOT Analysis

Strength (Internal)

Unique Product: The uniqueness of our product is the main strength for
our business. This is very new in the market. Other feed companies use
the regular and same stuff for the mixing, but we have brought unique
raw material which is black soldier fly and the hatching techniques are
also different from others.

Environmentally friendly and Healthy: our feed would be made by the

worms which will eat the wastage and die after that. We are not mixing
any sort of chemical in our feed, so the taste and quality of the fishes and
chickens will remain same as they should be. And as we are not using any
types of chemicals, so it will be healthier for the people who will consume
those.

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Low cost pricing: We are providing the products at very cheap rate to
our dealer which is 25 tk/ kg whereas our competitors are selling it at 30-
37 tk. Though it may seem like we are losing the ground but by this
pricing strategy we can attract more customers. We have also set a
limitation to the retail price which is 30tk at best, so the dealer can also
make profit by doing business with us.

Service: we will provide better service than our competitors. In each

targeted area we will send our sales representatives to make sure that
the dealers are not making the farmers or the poultry owners fool by
selling product more than the fixed retail price. That’s how they will also
rely on us and by time we can have more loyal customers.

Weakness (Internal)

Lack of Experience: As we are new in the industry thus our experience

very limited. With that limited experience we must face hassle for first
few months which can slow down our process and make us face
bottleneck issues.

Switch of the Customers: We are new in the market with a very

innovative product, so it will take time to build a relationship with the
customers but before that we might face customer switching issues.

Educating Customers: As our feed is bit different from regular feed so

it will take time to educate our target customer that why they should buy
our product. It will be very time consuming as most of our customers will
be rural people with very conservative mind.

Opportunities (External)

Expanding in Future: People are nowadays very concerned about their

health and environment. As our product does not contain any chemical so
when people and our customers will see the positive outcome then we
will expand our business in other cities of Bangladesh such as Sylhet,
Chittagong.

Making Fertilizer: We can also make fertilizer with our raw material in
that fact we might go through so different processing system, but we will
not need any extra raw materials for our product moreover these
fertilizers will be natural and good for the corps as we will not allow any
kind of chemical in the making process.

Relation with stakeholder: Good relationship with stakeholders can

help a company o business to profit more. By our service we will make a
strong bond with our stakeholders which will lead our business to be
more profitable.

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Threats (External)

New Entrants: As Bangladesh is an agro based country so this sort of

business will always be on the market that’s why it will attract more
people to invest in this field which can make a tough competition for the
existing companies.

Imitation: In Bangladesh imitation is very common though a company

has patented or has trademark. Anybody can imitate other’s idea. So, this
could be threat for us as we are bringing a very innovative product in the
market.

Competitors: The competition is very high in the industry. Mainly 7 big

companies are now leading in the market so competing with them is very
tough and there are also several small companies which are also
competing. So, sustaining in the market will be very challenging for a
new company like ours.

DESCRIPTION OF VENTURE

Products

Pokaru is a poultry and hatchery feed. This is chemical free organic feed.
The tagline of Pokaru is- “Rashaonik feed ar noi, Pokaru hole valo hoe”.
This is completely new product feed in poultry and hatchery feed
industry. The organic waste consumed by the BSF larvae can also use for
fertilizer. The offering of Pokaru will be in the reach of poultry and
hatchery owners.

Services

Poultry & fisheries owner of Abdullahpur, Gazipur, Narsingdhi will be the

target market of Pokaru. Pokaru will be distributed to the owners of
poultry and fisheries through the dealers of the targeted area. The
dealers will be selected in the targeted area by the owners of the Pokaru.

Size of business

Pokaru is now in the primary stage of its business. The factory and office
both are located on Abdullahpur. The office is medium size, so the factory
and office located in the same place. We lease the land of Abdullahpur for
setup the factory and office.

Office equipment and personnel

As we are the startup, we have primary office equipment in the office.

Like Table, chairs, fan, lights, laptop. For develop the feed from egg to
larva we have setup of hatchery cage, hardware tools, machineries. We

9
have minimized our cost in the setup of office and factory for Pokaru. The
asset schedule is provided in the Finance Section.

Background of entrepreneurs

We all are enthusiastic, passionate and final year students of North South
University. We are from different backgrounds like Marketing, Finance
and HR. The partners are engaged in various part time jobs, extra-
curricular activities, free-lance work, etc. We are all very interested to
set up and get something innovative running. The drive and desire to
avail an innovative business has led to the generation of a breakthrough
idea for the Bangladeshi feed market, and we are ever relentless in our
pursuits in setting up and running the business.

PRODUCTION PLAN

Waste collection: In the production process, first we’ll collect the

organic food waste from the local breweries and after collecting the
waste we will mix all types of waste together.
Egg hatching: We will put the collected eggs on a 4-inch-high net table
and under this table we will keep few wet corn powders. After 2 days
larvae will come out from those eggs and we’ll keep them there for 5
days.

10
Nursery container: After 5 days of feeding the young larvae are ready
for the waste treatment. All the larvae are put into different nursery
container where the mixture of the waste is given in every 2-3 days. They
are put there for 2 weeks or more until they transform into pre-pupae
and ready to pupate. This is the main processing for our production.
When the process will be finished we will separate the larvae from the
waste the produced. This waste is known as Fras which itself is valuable.

Collect the final products: After separating the waste from the larvae,
we will send about 97%-98% of larvae for prepupae handling process
where these larvae will be washed, dried and stored. Firstly, the larvae
will be washed because these larvae will be mixed up with the waste.
Secondly, when they will be cleaned up, they are put into boxes for being
dried up. Finally, we will store the larvae into packets for selling it to our
final consumer. This process may take 10 days.

11
Dark cage: After separating the waste we will keep 2%-3% of big larvae
alive. We will keep these black soldier fly into the dark cage where they
will be mating. We will connect the dark cage with the lamp which help
them mating.
Collect egg: We will move the flies to the love cage after some days
where they will lay eggs. We will collect the eggs from the love cage and
will do the same process again to produce our products.

Production:
We assume that, In the 1st year our total production will be 21,667 kg

12
where our 2nd year’s production will be 1,89,415 kg and our 3rd year’s
production will be 16,79,347 kg. Our production will be growing so fast.
Ending Inventory will be 100 kg as our assumption.

Manufacturing
Budget 2019 2020 2021

1 1,6
Sales in Kg 21,567 89,315 79,247

Desired Ending
Inventory kg 100 100 100

Available for Sale kg 1 1,6

/(production) 21,667 89,415 79,347

Less: Beginning
Inventory kg   100 100

Total Production 1 1,6

Required kg 21,567 89,215 79,147

OPERATIONS PLAN

Production

 Production techniques and costs: Our black solder fly

production will inside a big room and without any machine,
chemical and digital technology. We will follow very organic and
ecofriendly way to produce our product. Our only raw material will
be bio waste from household and restaurants and they are very
easy and cheap to collect. Unit cost in the 3 rd year will be 1 taka
per kilogram

 Quality control: For Poultry and fish our larva is the complete
food. Our larva is capable to eat meet, seed, vegetables, and any
other kind of bio product and they reserve those food elements
inside them. Poultry and fish can get every element of food
(carbohydrate, protein, oil and other staffs). This larva is good
source of protein for poultry and fish.

 Customer service: Consumer satisfaction will be given the most

priority in our business. We will research market always to get
regular feedback from consumer and give them knowledge about

13
 our product. We will ensure to our consumer that we are providing
them the most effective and efficient product to them.

 Inventory control: we need to stock our inventory till sell those.

We need a security personal and a large space to stock them.

 Product development: we will develop our product by small

regular research on our product. This will be on what kinds of food
are given and how much need to give to get the best output.

Location
 Amount of space: We don’t need very huge amount of space to
production in the first three years. 3000 square feet place is
enough to produce our product. But for our ware house this will
depend on stocks of unsold product.

 Type of building: under a shade, surrounded by very normal and

air free room is needed for our production.

 Zoning: We set our place of production is Abdullah-pur. This is last

part of Dhaka and from this place collecting restaurant bio waste
and waste of bazaars of Dhaka city is very easy.

 Power and other utilities: we need 24-hour electricity supply for

love cage. We will buy a generator for that so that at the time of
lode shedding we keep containing our egg production.

 Access: For our customer this place is very easy to supply. And
from Abdullah-pur transportation or truck hiring is always available
to supply product all over the country.

Legal Environment
 Licensing and bonding requirements: We need a trade license
only from Bangladeshi government.

 Zoning or building code requirements: In our production

process bad smell will be a big challenge for us. Keeping this in our
mind we will set our zoning in very inside of Abdullahpur in any
industry area. For our business safety Fire extinguisher system and
code of constriction building stetted by RAJUK will be applied if
needed.

 Insurance coverage: we will apply for fire insurance and theft

insurance for our business.

 Logo: We will be very conscious about the safety of our trademark,

so that no one misuses our logo. Our trademark will be expressive
and will be easy to understand and memorize.

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Personnel
 Number of employees: in the last year we need 17employees. In
the initial year 9 employees are enough. In second year, we need
13 employees. Besides them all eight owners will work for our own
business.

 Type of labor: we don’t need any professional and skilled labor

and employee. We just need few dedicated, reliable, dependable,
responsible people we have or had experience with cleaning
occupation. Or will not hesitate to work with waste and insect.

 Finding employees: Basically, those people whose are relates to

waste management in very lower level are our first target for
employee selection. But for security inheres well pre-known
reliable person is the source.

 Pay structure: Payment will be monthly basis. Working hour and

minimum salary will be fixed by local law.

 Training methods and requirements: extra training will not be

given to our staffs. They will learn from their regular activity.
Basically, it is On-The-Job training. Experienced workers will be
paid more and increase gradually. Very informal requirement
process will be applied.

 Schedules: There will be a written schedule for our worker.

 Job description: in this level of job it is not needed to specify who

will do which work. But because of maintain the working process
we will fix and divide work for our employees.

Inventory
 Our inventory will be raw material which means grinded bio waste
and our finished packed or non-packed product. We will stock our
finished good not more than 1 year. After one year if our product
remains unsold we can again use them as food of our larva.

Suppliers

 Our suppliers will be from resurgent zone of Dhaka city and bazaar
zone of city so that we can collect meet waste and vegetable waste.

Credit Policies
 In our business we will permit our buyers to buy on credit. But
before next buying process they must pay their payable.

 Up to buying 100 kg they must pay 50% of price in cash must and
up to 300 kg 40 % payment is must.

15
  Last date will be fixed by negotiation of payment.

 To collect money direct phone call even direct visit will be made.

Employee Schedule:

2019 2020 2021

Factory Employee Schedule:

Direct Labor:

Pulley 3 4 5

BSF Production 2 3 4

Waste Processing 2 3 4

Indirect Labor:

Quality Control Assistant 1 2 2

Cleaner 1 1 2

Total number of employees 9 13 17

MARKETING PLAN

Product
Pokaru is a poultry and fishery feed producer which produces feed from
black soldier fly larvae. We will import black fly eggs and produce larvae
which is a great feed for chicken and fish. Our product is all organic and
uses waste for production. So, there is no use of chemical ingredients or
other materials which may harm the animals. As there is not much cost in
producing the feed, the price of our product is lower than other feed
producers. Tagline is- “Vejal feed ar noe, Pokaru hole valo hoe” Initially
we will introduce 10kg package.
Price
Pokaru is following low cost differentiation strategy. The price is lower
than other feed producers in Bangladesh because our production cost is
very low. And its differentiated because pokaru consists only larvae
whereas other feed producers use chemical ingredients. Initially our
dealer price will be 25tk per kg and the dealers can sell them at
maximum 30tk per kg. The price of other feed is 35++.
Place
The production facility and office of pokaru will be situated in
abdullahpur. And initially we will distribute our products to the poultry

16
and fisheries situated in Gazipur and Narsingdhi. After 3 years we will
start to expand our operations throughout the country and attract other
consumers.
Promotion
Pokaru is a different kind of feed than regular feeds. The feed and its
benefits need to be properly introduced to dealers and final users. To
achieve strong customer base, we need effective promotional activities.
1. Awareness campaign- Pokaru will arrange awareness campaigns
in Gazipur and Narsingdhi. Where both dealers and feed users will
be present. Our sales person will present the benefits of using
pokaru. Also, they will be given some free samples.

2. Mike and poster- We will use mike and poster in our targeted
areas to educate our users and to buy our products from the
dealers. As a result, both dealers and users will be benefitted.
Frequency of Miking: 4 times/month & 2000tk/times. Frequency of
Poster: 5000 posters 5tk/per poster.

3. Personal selling- Our sales representatives will visit dealers and

feed users of Gazipur and Narsinghdhi personally and make them
aware of our product and its benefits. We will also provide free
samples. We will make sure that dealers recommend our products
to the users. Frequency & cost: 30 or 40 visits/month. 200tk per
visit.
Packaging-
Pokaru will be packaged in recycled material and jute bags. Which is
environment friendly and won’t harm the effect. Also, it will make sure
that the feed stays fresh for longer period.
Positioning
Pokaru is positioned as an organic feed that’s free of chemical
ingredients and price is lower.
People
Strong human resource is a crucial part for a business to run smoothly
and ensure profitability. Our employees will oversee maintenance and
handling all the production activities. And the stakeholders will oversee
the organizational activities.

ORGANIZATIONAL PLAN

17
A. Form of ownership:

In our firm we have eight members and all the partners similarly
contributed for the startup money. It will be encircled under the plans of
the Partnership Act 1932. It is managed as a counterfeit being made by
activity of law with a lawful identity independent and specific from the
accomplices thereof. It proceeds from the possibility that individuals may
be allowed to pool their assets and advantages to take part in the mission
for an average business objective without basically dealing with
themselves into an association, whereupon the law powers a significantly
higher kind of direction, restriction and standards. In our country,
association works under the possibility of unfathomable commitment and
except if generally settled upon by the partners, each one of them goes
about as manager and operator of the organization and in this manner,
their demonstrations tie the organization.

B. Identification of partners

MEHEDI HASAN TARIF- He is the CEO of the Business.

OPERATIONS

COO- ZOBAYEER HOSSAIN

FINANCE

CFA- RADOAN RIMON

MARKETING

CMO- S. M. Shahriar

CMA- MD MURSHIDUZZAMAN

DMA- MD ASIF JAMIL

MANAGEMENT

CMO- ISRAT JAHAN

DMO-TASNUVE HIMI

Here each member is considered as the foremost investor that makes

support and includes the association's prosperity.

C. Authority of principals:

18
Every one of the accomplices is the key members of our management
team. The specialist of principals is the owners of the organization and
every one of the members of management team who holds managerial
positions.

D. Details Background of Partners:

There are eight under graduate students who need to start something
other than the mainstream businesses already present in Bangladesh.
Every partner is in last stage of graduation program and gain good
knowledge of business through their education.

➢ MEHEDI HASAN TARIF, CEO of the business after completed his

under graduation from North South University. He has majored in
Accounting and Finance. He lives in Badda, Dhaka.

➢ ISRAT JAHAN is the Chief Human resource office of the business

after completing her under graduation from North South University
majoring in Human Resource Management. She lives in Shantinogor,
Dhaka.

➢ TASNUVE HIMI is the Deputy Management Officer of the business

after completing her under graduation from North South University
majoring in International Business. She lives in Bashundhara, Dhaka.

➢ MD ASIF JAMIL (Marketing major), who will be the Deputy

Marketing Analyst of the business completed under graduation from
North South University. He lives in Bashundhara, Dhaka

➢ S. M. SHAHRIAR (Marketing major), the Chief Marketing Office of

the business and finished his under graduation from North South
University. He lives in Dhanmondi, Dhaka.

➢ MD MURSHIDUZZAMAN (Marketing major), He is the Chief

Marketing Analyst of the business completed his under graduation from
North South University. He lives in Banasree, Dhaka.

➢ ZOBAYEER HOSSAIN (Finance major), The Key Business idea

generator of Pokaru business. He is the Operations manager of the
business and completed his under graduation from North South
University, majoring in Accounting and Finance. He resides in Mirpur,
Dhaka.

➢ RADOAN SHIKHDER RIMON (Finance major), he is the Chief

Financial Officer of the business & completed his under graduation from
North South University. He lives in Mirpur, Dhaka.

19
E. Roles and Responsibilities of the Management Team:

➢ CEO: MEHEDI HASAN TARIF, Head of the Pokaru(পো-কারু) will

mainly focus on co-ordinate everything properly. He is responsible for
setting the tone for the facility, managing the day to day activities,
overseeing physical facilities, hiring staff and managing the overall image
of the business.

➢ Chief Human Resource Officer: ISRAT JAHAN, Human resource

manager have strategic and functional responsibilities for all the HR
disciplines. In our business, a human resource manager reports to the
human resource director. HR managers perform all the department's
functions or work with an HR assistant or generalist that handles
administrative matters in our business. Recruit experience and related
background people will be the focus.

➢ Deputy Management Officer: TASNUVE HIMI. General Manager is

one of the most important persons in our firm, the manager of
administration is responsible for overseeing all business-related
functions. A major part involves leading and directing employees. she
delegates administrative tasks, such as paperwork and decision making,
while giving freedom to deal with other issues. In doing so, she ensures
efficiency, proper procedure, implementation of policies and employee
morale.

➢ Chief Marketing Officer: S. M. SHAHRIAR. He will be developing

key marketing strategies, campaigns, promotional content, and proper
ways of communication channels to be able to effectively reach the target
market.

➢ Chief Marketing Analyst: MD MURSHIDUZZAMAN. He will be

developing promotional content, analyzing effectiveness of marketing
campaigns, and assessing business risks from time to time, and
developing contingency plans therein thereof.

➢ Deputy Marketing Analyst: MD ASIF JAMIL His role would be

assisting CMO and CMA in developing effective campaigns, developing
effective marketing strategies, lead generation, customer service
representative, developing costing schedules of marketing plans, so on
and so forth.

➢ Chief Operations Officer: ZOBAYEER HOSSAIN. Operations

managers play a leading role in managing day to day operations,
ensuring timely deliveries, production schedules, meeting and delivering
operational targets, and working closely with the Finance Manager in
developing financial statements, and other related documents. He will

20
also be responsible in developing core business ideas for further growth
of Pokaru.

➢ Chief Finance Officer: RADOAN SHIKHDER RIMON. He will be

responsible for keeping accounts and preparing financial statements,
operational budgets, undertake costing analysis, budgeting, etc. Also
working closely with the COO and DMA in linking costing schedules to
the financial statements. Making forecasts, undertaking sensitivity
analysis from time to time.

ASSESSMENT OF RISK

Weakness of business

1. High Startup Cost:

We are new & coming into industry of Poultry & Hatchery feed,
with a relatively unavailable (Organic/Natural) feed, so our expense
for all production set up & post production requirement would cost
us a big amount money. Again, we must have a sum of liquid cash
in our hand, which is really increasing budget of our start up.
2. Arranging Human assets:
As we know to start such business facility, we will need at least 9
employees, including skilled & unskilled workers. 1 professional to
control quality of the finished product is mandatory for us, which
seems to be a challenge for any small startup. In addition, for us to
find efficient sales representative can also be challenging.
3. Health Safety of production personnel:
As we know, our main raw material is Bio waste or municipal
waste, so it’s a big concern for company to ensure germ free
working facility for our workers. Again, we will assign some
unskilled workers who are not familiar with waste processing & re-
cycling technique. So, for them, to ensure a healthy production
process is mandatory.
4. Maintaining Storage Expense:
According to BSF’s life cycle, a matured FLY can give at least 500
eggs for next Hatching process & at the end of cycle each can turn
into a fly. So, it means that we must have big enough storage
facility. Otherwise it will be challenging for us to protect unsold or
deliverable goods.
5. Distribution challenge:
At first, we need waste dispersing TRUCKS to get raw material.
Then we must need to follow whether personal or 3 rd party trucks

21
 to transport our product to dealer’s warehouse. Since we will use
extensive or 3rd party transports, so it will be a challenge for us to
find a reliable provider who can supply transport constantly over
the year.

 Reaction from Competitors: They could also lower their price to

hold maximum market share. They could use “product
Development”, by offering wide variety of product within same
category.
 Reaction from Whole-Seller: They might not want to lose their
major suppliers of Chemical feed producing company, as we are
directly selling alternate product (Organic Feeds) of this chemical
feed.

Impact on our business by the Above-Mentioned Risks

 If we don’t have handsome amount of liquid cash for working

capital, it may hamper our value chain network & daily base
operational work.
 Workers who don’t have skill in personal selling process, may
not achieve expected contract with wholesaler or target sales
volume.
 Without hiring a Quality control expert, we can’t make bold
statement that optimum quality has been ensured
 Health protection should be there, or else people might not be
interested to work for our company.
 Since our production expecting to grow on huge scale just
within 3 years, so either we must ensure standard storage or
good’s quality will fall & thus we will lose stable customers as
well.
 If we can’t maintain good relationship with 3rd party transport
provider, then raw materials suppliers & wholesaler will not get
deliver on time. Hence it will cost our goodwill through the
value chain network, which is also harmful for BRAND IMAGE
as well.

Strategies to prevent, minimize, and respond to risk

1. To compete with direct competitors, we will be ready to adapt

with newer technology, so that we can also offer a wide range of
Organic feed by developing product (Broad Scope Strategy)
2. We are ready to give at least 5/tk discount in per KG, which
surely is a lucrative offering that we believe no wholesaler will
deny

22
 3. We are expecting enough profit from the 2nd year end, which
will eventually solve problem of having liquid cash
4. We will surely give short training to all our workers & also from
beginning of the first year we will employ a ‘Quality control
expert’
5. We will provide necessary costumes for employees such as
Goggles, Mask, Hair cap & gloves. In addition, we will use
modern “Waste Blending & Drying” machine
6. In near future (after 3 years) we have plan to set our storage
facility at Gazipur & Norshindi
7. For 1st 2 years it will be challenging to ensure permanent
distribution channel. But we hope to make contract with
distribution channel owners after 3rd year.

New Technologies
Yet, there has not been in the development of much more efficient
organic feed production other than through BSF larvae. However, a
facility in London is using an automated system in the hatching of BSF
larvae without any human contact. This is a very costly investment, and
ROI on this investment would not be appreciable until and unless scope
of production is very high. However, our competitors, with their deeper
pockets would be very much able to afford such technology without
having to go through the hassle of everyday regular operation. In such a
scenario, it would be a difficult route to maneuver through as they would
be able to our cost and out compete us on all fronts.

Contingency Plans
Possible external risks that we should be aware of:
a. Natural hazards such as floods, factory fire, hurricanes, earth
quake, etc.
b. Economic recessions and sluggish buying behavior.
c. Political turmoil and supply disruptions.
d. Target market not adapting to the product offering of Pokaru.
Possible Contingency Plans
a. Ensure factory has well indicated entry and exits, emergency exits,
fire safety, first aid kits, and at least one of the partners having
basic training in first aid. Furthermore, essential to keep a locker
for keeping cash belongings, and a certain quantity of eggs in a
cold storage facility away from the premise. Furthermore, there
should be availing emergency transport available on demand, to
respond to crisis scenarios. Furthermore, there should be
arrangements made in advance by the partners for raising short
term loan capital to rebuild the facility in case of complete
breakdown.

23
 b. In case of economic recessions, survival of business would be the
main aim. This would be ensured by providing credit for extended
periods, and bartering systems in place of cash for settlements if
need be, so that the exchange items can be reconverted to cash for
liquidity. Since this is a business less hit by economic downturns,
still arrangements would be made with suppliers and customers to
ensure proper working capital cycle.
c. In times of supply chain disruptions with political turmoil, the
partners themselves have to be ready to undertake delivery of the
product by whatever transport available, and cost should not be a
constraint in this scenario. The finance manager would be
preparing a forecasted expense for such scenarios and the
contingency funds would be disbursed at this time. The main
purpose would be to get the supply chain running no matter what
the external circumstances may be.
d. If all marketing efforts avail to zero outcomes in securing business
customer channels, then the only alternative would be to scrap off
the production assets to generate cash, and turn the facility to a
waste composting site, or any other promising entrepreneurial
ventures. Furthermore, in case of complete dissolution of business,
the partners would be reimbursed the leftover capital in
accordance to their original investment.

FINANCE PLAN

ASSUMPTIONS:

Production Facility  

Facility Size 5 Katha

Land Type Lease

Lease Duration 10 Years

Total Lease Cost 1,000,000 Bdt

Annual Lease (I.E. depreciation) 100,000 Bdt

Warehouse Type Rent

Storage Capacity 5,000 Kg

Monthly Rent 10,000 Bdt

Annual Rent 120,000 Bdt

24
Monthly Production Capacity 640 Kg

Monthly Production Growth Rate 20% Assumed

Miscellaneous Costs:  

Eggs Purchase (First Year; One Time) 400,000 Bdt

Water 12,000 Bdt

Electricity 24,000 Bdt

Factory Insurance (Annual) 24,000 Bdt

Production Related:  

Waste Process Capacity (Per Day) 1 Ton

Waste To Fertilizer Conversion Rate 50%

Daily Fertilizer Production 0.5 Ton

No Of Days In Month 30

Monthly Fertilizer Production 15 Ton

2019 2020 2021

Factory Employee Schedule:

Direct Labor:

Pulley 3 4 5

BSF Production 2 3 4

Waste Processing 2 3 4

Indirect Labor:

Quality Control Assistant 1 2 2

Cleaner 1 1 2

Total number of employees 9 13 17

25
 201 202 202
Salaries:
9 0 1
Monthly

Direct Labor:

3,00 3,18 3,37

Pulley 0 0 1

15,0 15,9 16,8

Bsf Production 00 00 54

15,0 15,9 16,8

Waste Processing 00 00 54

33,0 34,9 37,0

Total Direct 00 80 79

Indirect Labor:

Quality Control 20,0 21,2 22,4

Assistant 00 00 72

5,00 5,30 5,61

Cleaner 0 0 8

25,0 26,5 28,0

Total Indirect 00 00 90

58,0 61,4 65,1

Total Monthly 00 80 69

2019 2020 2021

Salaries: Annual

Direct Labor:

36,00 38,16 40,45

Pulley 0 0 0

180,0 190,8 202,2

BSF Production 00 00 48

180,0 190,8 202,2

Waste Processing 00 00 48

26
 396, 419, 444,
Total Direct 000 760 946

Indirect Labor:

Quality Control 240,0 254,4 269,6

Assistant 00 00 64

60,00 63,60 67,41

Cleaner 0 0 6

300, 318, 337,

Total Indirect 000 000 080

696, 737, 782,

Total Annual 000 760 026

20 20 20
Revenue
19 20 21
Model:

Price/Kg
(Bdt) 25 25 25

Depreciation Yearly Monthly

Schedule: Total Cost depreciation depreciation

Production Assets
(10 years) 1,176,000 117,600 9,800

Shed And Building

Structure (10 years) 500,000 50,000 4,167

Leased Land
(Operating Lease:
10 years) 1,000,000 100,000 8,333

Generator (5 years) 50,000 10,000 833

Total 2,726,000 277,600 23,133

Asset Schedule: Unit Cost Units Total Cost

27
Love Cage 5,000 7 35,000

Love Cage Charger 10,000 7 70,000

Love Cage Table 8,000 7 56,000

Dark Cage 30,000 7 210,000

Dark Cage Table 5,000 7 35,000

Hatchling Container 15,000 24 360,000

Nursery Container 15,000 24 360,000

Hatchling Shower
Rack 50,000 1 50,000

Total: 1,176,000

Equity
Contribution: % Amount

S. M. Shahriar 15% 457,500

Md
Murshiduzzaman 10% 305,000

Md Asif Jamil 5% 152,500

Tasunve Himi 15% 457,500

Israt Jahan 10% 305,000

Radoan Shikder
Rimon 5% 152,500

Zobayer Hossain 15% 457,500

Mehedi Hasan Tarif 25% 762,500

Investor 8% 900,000

Total Equity
(Cash) 3,950,000

2019 2020 2021

Direct Cost Breakdown:

28
Selling Expense/Unit 0.93 0.98 0.58

Advertising Expense/Unit Sold 10.06 1.32 0.19

Direct Labor 396,000 419,760 444,946

Direct Labor/Unit 18.28 2.22 0.26

Variable Cost/Unit 29.27 4.52 1.04

First Year Marketing Cost

Breakdown      

Frequenc
Marketing Cost: Rate y Cost

Miking 2000 48 96,000

Poster 5 5000 25,000

Personal Selling 200 480 96,000

Total Annual:  217,000

Total Monthly:  18,083

Pro Forma Income Statement (First 3 Years)

2019 2020 2021

Pro Forma Income Statement

4,705,38 41,953,66
Total Revenue 514,407 3 9

Operating Expenses:

Salaries 696,000 737,760 782,026

Rent 360,000 360,000 360,000

Utilities 36,000 36,000 36,000

Advertising 217,000 249,550 325,500

Selling Expenses 20,256 185,838 975,386

Insurance 24,000 24,000 24,000

29
 Depreciation 277,600 277,600 277,600

Office Expenses - 120,000 120,000

Total Expense 1,990,74

1,630,856 8 2,900,511

(1,116,45 2,714,63 39,053,15

Net Income/Loss 0) 5 7

Pro Forma Cash Flow Statement (First 3 Years)

Pro Forma Cash Flow

2019 2020 2021
Statement

Cash Flow From Operations:

4,705,3 41,953,
Revenue 514,407 83 669

Add Depreciation 267,600 267,600 267,600

(1,530,8 (1,990,7 (2,900,5

Expenses 56) 48) 11)

Net Cash Flow From Operating (748,84 2,982,2 39,320,

Activities 9) 35 758

Cash Flow From Investing

Activities

(1,176,0
Purchase Of Factory Asset 00) - -

30
 (500,00
Factory Building And Shed 0) - -

Generator (50,000)

(324,00
Licensing And Hospitality 0)

(400,00
Egg Import 0)

Net Cash Flow From Investing (2,450,

Activities 000) - -

Cash Flow From Financing

Activities

Equity Startup Capital 3,050,00

Contribution 0 - -

Increase/Decrease In Debt - - -

Increase/Decrease In Investor
Finance 900,000 - -

Net Cash Flow From Financing 3,950,0

Activities 00 - -

751,15 2,982,2 39,320,

Net Change In Cash 1 35 758

3,733,3
Add Cash At Beginning Of Year - 751,151 86

751,15 3,733,3 43,054,

Cash At End Of Year 1 86 143

31
Pro Forma Balance Sheet

2019 2020 2021

Details

2,726,0 2,726, 2,726,0

Fixed Asset At Cost 00 000 00

Less Accumulated 555,20

Depreciation 277,600 0 832,800

2,448,4 2,170, 1,893,2

Net Book Value 00 800 00

Current Asset

Inventory 7,527 1,051 173

3,733, 43,054,
Cash 751,151 386 143

758,67 3,734, 43,054,

Total Current Asset 8 437 316

3,207,0 5,905, 44,947,

Total Asset 78 237 516

Liabilities

357,05
Accrued Expenses 373,527 1 346,173

373,52 357,0 346,17

Total Liabilities 7 51 3

3,950,0 3,950, 3,950,0

Owners' Equity 00 000 00

(1,116,4 1,598, 40,651,

Retained Earnings 50) 186 343

32
 2,833,5 5,548, 44,601,
Total Equity 50 186 343

Total Liabilities And 3,207,0 5,905, 44,947,

Equity 78 237 516

Break Even Analysis

Break Even Analysis: 2019 2020 2021
Selling Price 25 25 25
Variable Cost/Unit 29 5 1
Contribution Margin -4 20 24
Fixed Cost 1,393,600 1,555,360 1,599,626
Break Even Units (Kg) 326,126 75,928 66,761
Break Even Revenue 8,153,140 1,898,204 1,669,031

Sources and uses of funds

Startup Cost: In Bdt

1,176,00
Production Assets 0

Shed And Building

Structure 500,000

Generator 50,000

Egg Import 400,000

Licensing And
Hospitality 324,000

Cash On Hand 600,000

3,050,0
Total Startup Cost 00

33
BDT 30.5 Lacs would be raised from partners’ equity contribution, along
with investor contribution of BDT 9 Lacs. BDT 24.5 lacs would be used in
building production assets, infrastructure, obtaining license, importing
eggs, and purchasing generator. The remaining BDT 6 Lacs along with
Investor 9 Lacs would be mainly for working capital funding and loss
funding for the first year. In addition to that an amount of the cash would
be reserved for contingency purposes.

REFERENCES

1. Legal aspects of business law. (n.d.). Retrieved from-

http://www.assignmentpoint.com/arts/law/legal-aspects-of-business-
law.html
2. Arif, K.A. (7 June, 2017). Market insight: Bangladesh feed industry.
Retrieved from-
https://www.lightcastlebd.com/insights/2017/06/07/market-insight-
bangladesh-feed-industry
3. Department Sanitation, Water and Solid Waste for Development.
(n.d.). Retrieved from
https://www.eawag.ch/en/department/sandec/projects/mswm/black-
soldier-fly-biowaste-processing/

34