Template of a Business Plan SM

I. Executive Summary

 SK / Gorgeous/Glorious/Pompous/Prime/ Leather goods Limited is a limited

th
company vide registration # C-104306 dated 5 September 2012. Registered by RJSC in Bangladesh.
Registered office BTI Luminary, suite # F2, 64 Tejgaon, Dhaka-1208, Business office House # 314,
Road 3 04, DOHS, Baridhara, Dhaka. Factory office Thakurbarir Teac, Masumabad, Rupgonj,
Narayangonj.

 SK Leather goods Limited is a Trading company of leather goods items which is going to
manufacturer of those goods.

 SK imports the Manufacturing machine as finished goods from china and seals in the market of
Bangladesh specially shopping mall and marketing showroom. The company is going to be a
manufacturer of leather item’s.

 SK seals the LED bulb, LED tube, Led flood light, LED panel light as a finished goods and make a plan
to manufacture those goods by importing the . End Cap, LED Single strip, internal power সেল হল
LED বাল্ব একটি ট্রেডিং কোম্পানী যা তাদের প্রস্তুতকারকের যাচ্ছে supply/circuit, Plastic Cover, Aluminum grove
as raw materials.

 SEL is incorporated on 5th September. 2012.

 SEL has 3,000 sft work station i.e factory and 50 personnel.

 The yearly turnover of SEL will be 150.00 million and expected after tax profit will be app. 30.00
million. Source of fund is bank and own source.

II. Brief Description of the Business

1. Name of the Business : Suntech Energy Limited
2. Nature of Business : Trading of LED bulb and going to be a manufecturar of LED bulb.
3. Sector/ Industry : Electronics
4. Objectives : Saving the electricity nationally
5. Employment : 50 persons
6. Brief Introduction of the Entrepreneur(s):

Name & designation Address Educational Experience Owners

Qualification hip %
Md. Amjad Hossain -Chairman 31 years 30%

SHekh Sayeed - Managing Director MBA 10 years 25%

Md Sohel Rana –Director MBA 5 years 30%

Golam Rabbi Akondo – Marketing BBA 2 years 10%

manager
Golam Rashed Akando – Marketing BBA 2 years 10%
& Promotions Manager
Other MBA 15 years 15%
7. Type of Ownership : Limited Company

8. Total Investment :
Initial Investment Fixed Asset Current Asset Total
Paid up capital 5.00 lac - 5.00 lac 5.00 lac

9. Loan & Equity :

Loan Equity Total

10. Potential Market :

Existing Market Country for export

Whole over the country (Bangladesh) & Tangail Medalist country

III. Description of Product/ Service:

Name of products are LED bulb, LED tube, Led flood light, LED panel light. The products of SEL can save
the electricity which is specialty of the products.

IV. Marketing Plan:

SEL make a marketing plan where dealership marketing, corporate marketing, local marketing as well as
export marketing are emphasized. Bangladesh and some midlist countries are search electric goods
those can save electricity. We can capture these types of market.
Major Competitors and their position in the market:
1. Competitors and their Position:
Sl. Competitors Position
1 Rahima Afros 2nd
2 Super Tech 3rd
3 Energy tech 4th

2. SWOT Analysis or Comparison of product/service with competitors:

Sl. Competitors Strength Weakness Opportunity Threat
1 Your business
2 Competitor 1 (local)
3 Competitor 2 (local)

3. Marketing Area:
SEL imports the LED bulb as finished goods from china and seals in the market of Bangladesh
specially Government and corporations office. The company is going to be a manufecturar of
LED bulb. And going to make a local market especially dealership, corporate & others and
international marketing specially in midlist countries for export the produced goods.

4. Target Customer:
 All customers under Government, Corporation, and urban area of Bangladesh are the targeted
customers because they want save their electricity. The LED bulb can save the electricity so
they consider the issue at the time of buying of LED blub.

5. Price:

Sl. Product Category Unit Price

1 LED blub BDT 200.00
LED Tube BDT 500.00
2 LED Flood Light BDT 5000.00
LED Panel Light BDT 3000.00
6. Sales Forecasting: (Mention here about how many units of products you will sell in the market
in one year, how much you expect to sell in BDT, say for 2 years/3years…)
Projected Sales
Year
Description of Product Quantity Unit Price Total Taka
2015-2016 LED blub 200,000 BDT 200 40,000,000
LED Tube 200,000 BDT 500 100,000,000
LED Flood Light 10,000 BDT 5,000 50,000,000
LED Panel Light 20,000 BDT 3,000 60,000,000
Total 430,000 250,000,000

Projected Sales
Year
Description of Product Quantity Unit Price Total Taka
2016-2017 LED blub 300,000 BDT 200 60,000,000
LED Tube 300,000 BDT 500 150,000,000
LED Flood Light 20,000 BDT 5,000 100,000,000
LED Panel Light 30,000 BDT 3,000 90,000,000
Total 650,000 400,000,000

Projected Sales
Year
Description of Product Quantity Unit Price Total Taka
2017-2018 LED blub 500,000 BDT 200 100,000,000
LED Tube 500,000 BDT 500 250,000,000
LED Flood Light 50,000 BDT 5,000 250,000,000
LED Panel Light 50,000 BDT 3,000 150,000,000
Total 1,100,000 750,000,000

7. Marketing Strategy:

(a) Promotional Strategy:

SEL will reach to the door of customers by advertisement using Different media like
newspaper, magazine, radio, TV, yellow page, sales kit/ promotional materials
(brochure), trade show etc, to sell the product,

(b) Price Strategy:

 SEL will manufacture the goods at minimum cost of raw materials, other consumable
items, administrative and selling expenses and confirming the heist recovery of raw
materials. So selling price will be cheaper than other.

(c) Market Expansion Strategy :

SEL expand the market by ensuring the quality goods, good services after delivery,
cheapest price and good understanding with customers.

(d) Distribution Strategy :

SEL will sale the produced products by dealer ship, wholesaler, retailer in the Govt.
organization, Corporation, urban area of Bangladesh as well as export to foreign
countries.

8. Marketing Budget (Yearly): (Mention how much you will spend for marketing your
products/services)
Item Budget (base on 2015-2016)
(a) Promotion 20,000
(b) Distribution of product 5,000,
(c) Sales Commission 6,000,
(d) Others (Specify) 2,000,
Total 33,000,

9. Risk of business:

Industry Risks
(a) Market demand:
The products of SEL are sold both in local and international markets. Any economic
recession, changes in tastes and fashions of the consumers, national income and other
related factors may cause to decline the market demand of the company products.
Management Perception:
SEL always gives values to its customers’ satisfaction and changes in tastes and fashion.
Therefore its expert team promptly dedicates their creativity and research work to respond
any changes in customers demand and product diversifications.

(b) Competition:

SEL is operating in a free market economy regime. The company might have to face stiff
competition from its competitors.
Management Perception:
Bangladesh is the prime source of cheapest garments in the world, earning comparative
advantages for its industries over their global competitors. In addition, the management of
MHSML employs their efficiencies; expertise and discretions to minimize the cost of its
products.

(c) Rising of Raw Materials costs:

The cost of yarn and other chemicals are rising gradually and drastically round the year. It
may hamper the profitability of the company to a greater extent.
 Management Perception:
SEL is aware of the continuing market situation of its raw materials. The management of SEL
believes that long term planning for raw material management, exploring number of global
markets, job wise costing for its finished products and trustworthy relations with the
suppliers and mitigate the risk of rising of materials cost.

Risks steaming from technological changes:

Changes in technologies may reduce the cost efficiency of the company.

Management perception:
SEL applies the latest technology in the dyeing process in the production. The machineries and
equipment of the company are also the latest invention in the sector which is imported from
renowned manufacturers of the world.

Other risk factors:

(a) Political Unrest:

Bangladesh is prone to serious unrest in the political condition embraced by Hartal, Road-Block
and many other politicized barriers to the business. Due to these factors it would stem the cost of
the product upwards.

Management Perception:

During the last forty one years of post independence period, Bangladesh has gone through a
variety of political situations. But presently, a sound political atmosphere is prevailing in the
country. Both the ruling and opposition parties are committed to the betterment of the country.
Last democratic national assembly election and local council polls are instances of peaceful
political situation in Bangladesh.

(b) Possible slowdown in economic growth in Bangladesh:

(c) Our performance and growth are dependent on the sound health of the Bangladesh economy.
The economy could be adversely affected by various factors such as political or regulatory action,
including adverse changes in liberalization policies, social disturbances, terrorist attacks and other
acts of violence or war, natural calamities, commodity and energy prices and various other
factors. Any significant change may adversely affect our business and economy significantly.

Management Perception:

Bangladesh economy is booming for last few years. Consistent industrial growth along with
increased agricultural production has made the Per Capita Income higher than that of recent
years. In addition, favorable government policies and industry friendly policies by other
regulatory bodies have proved to be congenial to the economy of the country.

(d) Natural calamities:

(e) Bangladesh is a country where recurrent natural calamities take place every year. It is a serious
threat to the business.

Management perception:

This type of situation is totally beyond the control of human being. Though the management of
 MHSML has a very little to do with, we can and should have some precaution measures to
minimize the damage of the business in such situations.

10. Seasonal Trends:

Month/Duration
(a) Peak Season Jan-Dec
(b) Off Season No off season

V. Operations Plan
1. Stages in Production Process:

Assembling
Testing
Punching
Finished

2. Project Implementation Schedule:

Sl. Activity Duration

1 Design the factory and import 3 months
the machineries

3. Production Capacity :
Product Units Time Quantity Unit Price Taka
LED Bulb pieces 1 year 50000 BDT 200 100,0000
LED Tube pieces 1 year 50000 BDT 500 250,0000
LED Flood Light pieces 1 year 5000 BDT 5000 250,0000
LED Panel Light pieces 1 year 5000 BDT 3000 150,0000
Total 1,100,00 750,0000

4. List of Fixed Assets and their Depreciation:

Fixed Assets Quantity Price Durability of Depreciation

Assets (In Taka)
Land (No need to mention - - - -
depreciation)
Building (rented) - - - -
Machinery & Equipment
Production/Assembling
Long 8-12 M
1 Set 3,800,000 - 380,000
Wide 60-80 M
Testing Equipments    
Integrating Spare 1 Set 6,0 - 600,000
Testing Luminous 00,000
Power Factor
Color Femop
 Power Factor
CRI, etc
Punching Machine    
Punch Lamp
1 Set 1,300,000 - 130,000
Aluminum
Blister Paching Machine 1 Set 2,500,000 - 250,000
Electronic Machine    
Power Factor 1 Set 200,000 - 20,000
Electric Soldering 1 Set 15,000 - 1,500
Base (E 27) Stamper 1 Set 10,000 - 1,000
Testing Line    
Testing Lamp 1 Set 6,300,000 - 630,000
Furniture & Fixture 1 Set 374,000 - 37,400
Equipment 1 Set 784,000 - 78,400
Transport (Bike) 2 400,000 - 80,000
Total 21,683,000 - 2,208,300

Rate of depreciation: Building@ 5% each year, Machineries & Equipment @ 10% each year, Furniture &
Fixture and Transport @ 20% each year may be considered.

5. Repair and Maintenance Cost of Fixed Assets:

Fixed Asset Repair and Maintenance Cost

Plant machinery 1,00,000
Others 75,000
Total 1,75,000

6. Cost of Raw Materials (yearly):

Description of Raw Material Unit Quantity Unit Price Cost (Taka)
LED Bulb Pieces 500,000 BDT 100 50,0,000
LED Tube Pieces 500,000 BDT 250 125,0,000
LED Flood Light Pieces 50,000 BDT 1500 75,0,000
LED Panel Light Pieces 50,000 BDT 1000 50,0,000

7. Workforce Engaged in production:

8. 35 direct and 15 indirect workers out of this 40 skilled and 10 semi skilled workers will be
engaged in production of SEL. We confirm the training programmed or workshop operated by
foreign expert personnel. More than BDT 10.00 million will be paid as wages. In case of
shortage or unavailable of workers round the year, we run the production smoothly
establishing the automated machinery.

8. Wages:
Designation Wages (yearly)
Skilled workers BDT 7.50 million
Semi skilled workers BDT 2.50 million
Total BDT 10.00 million

8. Factory Overhead Cost:

Sl. Description Ref Cost (yearly)
1 Utilities (gas, electricity, water) BDT 0.50 Thousand
2 Depreciation of fixed assets BDT 2.20 Thousand
3 Repair and Maintenance cost BDT 0.20 Thousand
 4 Rent (land, building, machine etc. if any BDT 0.30 Thousand
5 Others (Specify) BDT 0.05 Thousand
Total BDT 3.20 Thousand

9. Production Cost:
Sl. Description Ref Cost (yearly)
1 Cost of Raw Materials BDT 43.50 Thousand
2 Wages BDT 10.00 Thousand
3 Factory Overhead Cost BDT 5.00 Thousand
Total BDT 58.50 Thousand

10. Inventory Management :

SEL has a plan for inventory management. We follow the account standards for measurement;
recognition and presentation of inventory i.e. raw materials, WIP and finished goods as well as
MIS system to record at the time of receiving, issuing, return, replacement including value . All
closing stock are stored at own warehouse with safety and strong security.

VI. Organization and Management Plan

1. Organizational Structure:
Organ gram and management team with experience & qualification

Chairman

Internal Audit
Board of Directors
department Company Secretary

Managing Director

Executive Director

Procurement
Accounts & Committee
Production Commercial Admin & HR Sales
Finance

Sl. Name Experience Qualification

1 Md.Rafiqul Islam -Chairman 31 years Eng. Textile
2 SM Tauhidul Haq - Managing Director 10 years MBA
3 Smrity -Director 5 years MBA
4 Afroza Baby–Nominee Director 5 years MBA

2. Associate/ Partner Organizational:

SEL has no subsidiary or associate company

3. Succession Plan:
As per Board decision, the business will be operated.

4. Business Start-up Activities and Cost:

Sl. Business Start-up Activities Time Cost
1 Business Plan preparation Done
BDT 0.50 Lack
2 Registration and license for business Done
3 Application for loan Process N/A
4 Contract/ Agreement Done N/A
5 Purchase of land/ Rent (only time) Process N/A
6 Connection of utilities (gas, electricity, water) Done N/A
7 Recruitment Process N/A
8 Others Process N/A
Total BDT 0.50 Lack

5. Office Equipment:
Fixed Asset Cost Duration Depreciation
Equipment BDT 784,000 10 year BDT 78,400

Total BDT 784,000 BDT 78,400

6. Salary of the Employees :

Sl. Designation Salary (yearly)
Top level GM
Mid level Manager BDT 2 Luck
Lower level Officer
Total

7. Administrative Expenses:
Sl. Description Ref Cost (yearly)
1 Depreciation of Office Equipment BDT 2.20 Luck
2 Salary of Employees BDT 1.80 Thousand
3 Office Rent BDT 0.30 Thousand
4 Office Utilities (gas, electricity, water etc.) BDT 0.20 Thousand
5 Postage, Telephone etc. BDT 0.05 Thousand
6 Stationeries BDT 0.05 Luc
Thousand k
7 Entertainment BDT 0.05 Thousand
8 Others (Specify) BDT 0.05 Thousand
Total BDT 4.70 Luck

8. Monitoring and Evaluation (M&E):

SEL will ensure the good environment where the sound internal control system and internal audit
will be available to monitor the progress of implementation of a plan. Our business will run with
morality so no partiality affects our success as verifiable indicators.
 9. Business Social Responsibility (BSR):

Creating a employment opportunity, making a fund for donate to helpless society, establishing the
religious institution, We will fulfill our responsibility towards the community.

10. Research and Development (R&D):

SEL will established the Research and Development department where we can study, experiment of
new and effective products in our business in terms of the present and future development of the
business.

11. Training & Development:

SEL import the expertise and making study environment to build the capacity/skills of our
management and employees.

VII. Financial Plan

1. Fixed Assets :
Item Ref Present (Tk) Proposed (Tk)
Land - -
Building - -
Machineries & Equipment BDT 20.00 million BDT 20.00 Luck
Furniture & Fixture BDT 0.37 million BDT 0.37 Thousand
Vehicle (Van, Truck if any) BDT 0.40 million BDT 0.40 Thousand
Equipment BDT 0.78 million BDT 0.78 Thousand
Total BDT 21.55 million BDT 21.55 Thousand

2. Current Asset :
Item Ref Present (Tk) Proposed (Tk)
Raw materials expenditure BDT 14.50 Luck BDT 14.50 Luck
Wages BDT 2.00 Luck BDT 2.00 Luck
Factory Overhead expenditure
Marketing expenditure
BDT 3.60 Luck BDT 3.60 Luck
Administrative expenditure
Other (Specify)
Total BDT 20.00 Luck BDT 20.00 Luck

The cost of Fixed Asset will affect more than one years and Current Asset will affect within one year
Capital (working ) is needed amount of BDT 10.00 million

3. Start-up Cost: = Taka 500,000

4. Total Investment: = Taka 500000

 5. Sources of Fund :

SEL needs BDT 50.00 million as capital out of this BDT 40.00 million comes from own source and
BDT 10.00 million will be bank as loan form from any scheduled bank of Bangladesh.

Description Loan Equity (BDT million) Total (BDT million)

Present Proposed Present Proposed Present Proposed
Bank/FI Others Bank/FI Others
Land - - - - - - - -
Building - - - - - - - -
Machineries - - - - 20.00 20.00 20.00 20.00
Furniture and - - - -
fixtures
Transportation - - - -
10.00 10.00 10.00 10.00
Business Start up - - - -
cost
Equipment - - - -
Total fixed asset - - - - 30.00 30.00 30.00 30.00
Net current - - - -
20.00 20.00 20.00 20.00
assets
Total Investment - - - - 50.00 50.00 50.00 50.00

6. Schedule of Loan Repayment:

SEL will take loan as short term loan that will be paid by sales proceed.

Year Installment Interest Total Paid Balance

1st N/A N/A N/A N/A

7. Income Statement:

Items Current Year Year 1 Year 2 Year 3

Sales 75,000,000
(-) Net VAT -
Net Sales 75,000,000
(-) Cost of Goods Sold 64,000,000
Gross Profit 11,000,000
(-) General 3,800,000
Administrative and sales Expend.
Net Profit Before Interest & Tax 7,200,000
(-) Interest on bank loan 200,000
Net Profit Before Tax 7,000,000
(-) Tax 2,600,000
Net Profit After Tax 4,400,000

8. Break-Even Point:
 (Mention the Break-Even Point-represent in a graph (if possible), the total sales and number of
units sold needed to break even)
Description Fixed Variable Cost

Fixed Cost 1,800,000

Variable Cost 4,000,000

Total Fixed Cost 1,800,000

Total Variable Cost 4,000,000

9. Projected Balance Sheet:

Items Current Year Year 1 Year 2 Year 3

ASSETS AND PROPERTIES
Current Assets
Cash and Bank balance 50,000
Inventory 20,000,000
Accounts Receivables 2,200,000
Prepaid Expenses 2,750,000
Other current assets -
Total Current Assets 25,000,000
Preliminary expenses 700,000
Machinery & equipment 20,000,000
Furniture & Fixture 500,000
Security Deposits 1,000,000
Land & Building -
Rental advance (prepaid rent) -
Vehicles & Transport 1,000,000
Other fixed Assets 2,000,000
Less accumulated depreciation on all fixed assets 200,000
Total Fixed Assets 25,000,000
LIABILITIES AND
OWNERS EQUITY
Liabilities
(a) Short term liabilities/ Current liabilities
Cash credit 500,000
Accounts Payable 1,500,000
Interest Payable 400,000
Taxes Payable 500,000
Outstanding expenses 2,000,000
Total Short term liabilities 10,000,000
(b) Long term liabilities -
Bank loan payable -
Mortgage payable -
(-) Current portion of long term liabilities -
Total Long term liabilities -
Total liabilities 14,900,000
Owners Equity 35,100,000
Initial capital 500,000
Retained Earnings -
Profit for the year 4,400,000
Total Owners Equity 40,000,000
Total Liabilities & Equity
 10. Cash Flow Statement:
Projected Cash Flow (Year) Current Year Year 1 Year 2 Year 3 Year 4 Year 5
OPENING BALANCE
Cash inflows
Sales 75,000,000
Equity 35,100,000
Loan 10,000,000
Asset sales -
Debtor receipts -
Other income -
Total Cash inflows 121.000.000

Cash outflows
Capital Expenses 20,000,000
Cost of raw materials
Wages 92,700,000
Factory Overhead Expenses
Utility, repairs & maintenance, rent)
Office Equipment
Salary
4,000,000
Administrative expenses
Marketing Expenses
Bank fees & charges
Interest paid 200,000
Lease/loan payments -
Income Tax 2,600,000
Start-up cost 500,000
Others (Specify) -
Total Cash outflows 12,000,000
Net cash follow 1,000,000
Cash balance 444,000
CLOSING BALANCE 1,444,000

11. Performance of the Company

Period Total Revenue (Tk.) Total Expenses (Tk.) Cross Profit (Tk.) Other Expenses (Tk.) Net Profit (Tk.)
12-13 25,000,000 18,750,285 6,249,715 1,250,308 4,999,407
13-14 50,000,000 37,500,000 12,500,000 2,800,515 9,699,485
14-15 77,500,000 59,675,000 17,825,000 2,826,895 14,998,105

VIII. Other Courses of Action

1. Environmental Issues:
SEL has a plan to maximum recovery of raw materials so waste management will be strong. We
ensure the sustainable development of raw materials because our finished goods is produced using
imported raw materials. Our product and work environment will not affect the overall environment
so we can confirm the ecological balance. We have clearance certificate of environment
department that can help to use the green technology/energy efficient equipment in the business.
We hope our business will not fall in terms of location and influence on environment.
2. Ethical Issues:
 SEL belief the morality that may confirm the maintenance of ethical standards of the business in
terms of monopoly, fairness in the market, loss/profit, etc.

3. Legal Issues:

Ensuring the control environment i.e good internal control system, SEL will comply its existing
policies, rules and regulations related with business)

4. Intellectual Property Issues:

By following the local rules and regulations, SEL will protect its name, products and services in
terms of patent, design, trademark, Licensing, copyright etc.
5. Working Environment:

SEL has a good factory and workstation with good environment that will promote peace and
harmony for working environment of workers.

6. Networking Linkage/ Partnership:

SEL established the strongest networking system or linkage to maintain the sound partnership with
stakeholders.

7. Safety and Security Issues:

SEL will ensure the better accommodation and security personnel for employee by establishing the
staff quarter and recruiting the expert security personnel.

8. Use of ICT:

SEL uses the tally software for accounting; try to establish the e- commerce to increase the market
and MIS system for making analytical report that is helpful to make correct decision in favor of the
company. IT specialist will be recruited for application of the above system.

IX. Conclusion
Now SEL is a trading company of LED bulb but the company will going to manufacturer of LED bulb.
SEL has a corporate and Govt. clients and try to capture the urban area clients of Bangladesh as well
as clients of midlist countries. We hope the turnover growth of the company will be improved
dramatically.