Business Plan Report on Book Loop Café

Course Code - MGT 368

Section - 19

Submitted to:
Shabnin Rahman Shorna (SRS3)
Lecturer
Department of Management
North South University

Submitted by:
Group - 05
Name ID

Auniruddha Dewan Aunik 151 0793 030

Aoishee Saha 152 1446 030

Saif Al Hasan Chowdhury 152 1315 630

Saimun Hasan 153 0634 630

Nawshaba Ali Chowdhury 161 0504 030

Date of Submission-13th December, 2019.

 Letter of Transmittal

13th December, 2019

Ms. Shabnin Rahman Shorna

Lecturer,

Department of Management,

North South University

Subject: Submission of the Group Report

Dear Ma’am,

Enclosed is a copy of the group report entitled “Business Plan Report on Book-Loop Café”
submitted as a part of requirement for our MGT 368 course. In preparing this report, we have
tried our level best to include all the relevant information and explanations to make the report
informative and comprehensive. It was a very enriching experience for us to prepare this report.

We will be available for any clarification, if required. Thank you for giving us this wonderful
opportunity to work on this project.

Sincerely,

Auniruddha Dewan Aunik

Aoishee Saha

Saif Al Hasan Chowdhury

Saimun Hasan

Nawshaba Ali Chowdhury

Acknowledgment

We would like to take this opportunity to convey our gratefulness to the Almighty Allah (SWT)
for all the blessings He has blessed us with. This report would not have been possible without the
support and cooperation of many people. First and foremost, we would like to thank our
honorable faculty Ms. Shabnin Rahman Shorna, for her exemplary guidance, valuable feedback
and constant encouragement. Her perceptive criticism and suggestions kept pushing us to bring
the best out of this report. While doing the project, we got some new experiences. We had a lot
of fun doing it. A lot of brainstorming was done too. Furthermore, we are extremely grateful to
each of our teammates and friends, who took part in our discussions and willing to share their
valuable ideas and profound knowledge, which made an immense contribution to our overall
work. And lastly, we would like to appreciate our family and friends for keeping us spiritually
uplifted throughout the entire process.
Executive Summary

This project is about the entire business plan on a café where people can get a café service while
reading their favorite books in a pleasant environment. Café business are doing great in
Bangladesh and for that reason, we have chosen one. We will not only provide café service but
also give booklovers an extra ordinary library facility. This type of business is very rare in
Bangladesh and we are sure to progress with proper planning. Our mission is to provide a place
where the brain & heart meet and a journey begins. The name of our café will be “Book Loop
Café” with a tagline: “Fuel up your brain, mind and soul”. A business plan is very important for
staring any kind of businesses. In this project, we have provided the entire business model canvas
of our café considering all the factors related to our business. . For our financial part, we have
shown income statement for 1st year including balance sheet, cash flow, and break-even point for
five years. Our focus is to ensure long-term sustainability & gradually expanding overall
business all over Bangladesh. In this report, we have included information’s that were needed to
justify our business plan.
Table of Contents

1.0 Introduction.....................................................................................................................................1
2.0 Business Model................................................................................................................................2
2.1 Business Model Canvas:...............................................................................................................2
2.2 Pricing Model...............................................................................................................................3
2.3 Social Goal...................................................................................................................................3
2.4 Sustainability...............................................................................................................................3
2.5 Financial Sustainability................................................................................................................3
2.6 Eco-friendly..................................................................................................................................4
2.7 Ethical Issues................................................................................................................................4
3.0 Business Environment Analysis........................................................................................................5
3.1 PESTEL Analysis............................................................................................................................5
3.1.1 Political Factors....................................................................................................................5
3.1.2 Economic Factors.................................................................................................................5
3.1.3 Social Factors.......................................................................................................................5
3.1.4 Technological Factor............................................................................................................6
3.1.5 Environmental Factor..........................................................................................................6
3.1.6 Legal Factor..........................................................................................................................6
3.2 Porter's Five Forces.....................................................................................................................6
3.2.1 Competitive Rivalry..............................................................................................................7
3.2.2 Bargaining Power of Suppliers.............................................................................................7
3.2.3 Bargaining Power of Buyers.................................................................................................7
3.2.4 Threat of Substitute.............................................................................................................7
3.2.5 Threat of New Entry.............................................................................................................8
3.3 SWOT Analysis.............................................................................................................................8
3.4 Stakeholder Analysis....................................................................................................................9
4.0 Description of Ventures.................................................................................................................10
4.1 Products and Services................................................................................................................11
4.2 Size of Business..........................................................................................................................12
4.3 Office Equipment and Personnel...............................................................................................12
4.4 Background of Entrepreneurs....................................................................................................12
5.0 Service Delivery Model..................................................................................................................13
5.1 Merchandising: B2B...................................................................................................................13
5.2 Inventory Control System..........................................................................................................13
5.3 Storage Management................................................................................................................14
5.4 The Flow of The Book Loop Café’s Service.................................................................................14
5.5 The Business Transaction Steps.................................................................................................15
5.6 Technology Utilization...............................................................................................................16
6.0 Operational Plan............................................................................................................................17
6.1 Description Of Company’s Operation........................................................................................17
6.2 Flow of Orders for Services........................................................................................................18
6.3 Technology Utilization...............................................................................................................19
7.0 Marketing Plan - 7P’s of Book Loop Café.......................................................................................20
7.1 Product......................................................................................................................................20
7.2 Pricing........................................................................................................................................20
7.3 Promotion..................................................................................................................................20
7.4 Place..........................................................................................................................................20
7.5 Packaging...................................................................................................................................21
7.6 Positioning.................................................................................................................................21
7.7 People........................................................................................................................................21
8.0 Organizational plan........................................................................................................................22
8.1 Form of Ownership....................................................................................................................22
8.2 Identification of Partners...........................................................................................................22
8.3 Terms of Agreement..................................................................................................................22
8.3.1 Capital................................................................................................................................23
8.3.2 Withdrawal or Death.........................................................................................................23
8.3.3 Net Profit and Loss.............................................................................................................23
8.3.4 Banking Arrangements.......................................................................................................23
8.4 Management Team Backgrounds..............................................................................................24
8.5 Roles and Responsibilities of Partners.......................................................................................25
9.0 Assessment of Risk........................................................................................................................27
9.1 Weaknesses of Our Business.....................................................................................................27
9.2 New Technology........................................................................................................................27
9.3 Contingency Plan.......................................................................................................................27
10.0 Financial Plan.................................................................................................................................28
10.1 Assumptions..............................................................................................................................29
10.2 Pro Forma Income Statement....................................................................................................30
10.3 Cash Flow Projections................................................................................................................32
10.4 Pro Forma Balance Sheet...........................................................................................................33
10.5 Breakeven Analysis....................................................................................................................35
10.6 Sources and Application of Funds..............................................................................................37
11.0 Conclusion.....................................................................................................................................38
Appendix...................................................................................................................................................39
1.0 Introduction

Book Loop Café is a combination of a coffee shop and library where people can enjoy eating
service while reading your favorite books. We have rented a two-storied building in Gulshan
area to operate our business in a quiet and calm place which is suitable for the introvert and
intellectual people. Per member investment in our project is 2,00,000 BDT. Customers can read
the books from our library section and also can borrow books from us. For that, they have to
register and become our members Now-a-days there is so many cafés and restaurants, but there is
no café where people can spend quality time with books and enjoying coffees at the same time.
That’s why we are trying to grab a piece from rapidly booming restaurant industry and also
trying to save the declining book industry. We can get some first mover advantages and we can
also create a new trend from this. So the opportunity of the Book Loop Café is pretty high. We
will provide library and café services under one roof which will save their times where our
customers will also be highly benefitted. Book Loop Café is a great place for community
gathering of mutual people. We will also provide a great parking and kids zone facility for our
customers in our café.

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2.0 Business Model

2.1 Business Model Canvas

Key Partners Key Activities Value Proposition Customer Customer

Relationships Segments
-Premium -Selling coffee -Drinking &
coffee suppliers with an reading opportunity -Personal and -Gender: Male
opportunity to read at the same time Automated and Female;
-Publication
books, articles,
houses -Convenient -Age: 12-60
newspapers etc.
location in Gulshan
-Newspapers & -Income: Middle
Magazines. -Traditional music class to rich
people
-Buy One Get One
offer for premium
membership card
holders
Key Resources -Membership card Channels
holders can borrow
-Shop -Print media
a book at a cheap
-Books, price after every -Online
newspapers, purchase advertisement
articles
-Free-Toast-Friday -Leaflet
-Coffee offer for purchasing
-Facebook page
making/serving coffee at Fridays
machines and -Website
-Noise suppressed
equipment’s
environment -Instagram
-Interior
-Kids zone.
decoration.

Cost Structure Revenue Streams

Rent expense, Buying new books, newspapers and -Both transactional and recurring.
articles on a regular basis, library management
expense with librarian, Coffee making cost, water
and electricity cost, employee salaries, advertising
fees.

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 2.2 Pricing Model

Pricing of The Book Loop Café’s in store service is the difficult task. We will not price too high
or too low, rather we will find the ‘sweet spot’ for pricing as in, settle on a price point that will
make sense to our customers. We will use one of the advanced pricing models, that is- the
Market Pricing. We will analyze the current market condition, determine the norm market prices
and set our prices.

2.3 Social Goal

You may find a restaurant in every corner of the Dhaka city, but you will hardly see a bookstore.
Our café’s social goals are-

 Save the declining physical book industry.

 Enrich the mind of the book readers.
 Inspire new young book readers.

2.4 Sustainability

To make the Book-loop café sustainable, we’ll think beyond our profits. We’ll serve good
quality food in a calm and nice environment. First, we’ll think about the customers’ satisfaction.

2.5 Financial Sustainability

We’ll also look at our welfares in the long term, so that we never run out of money to run our
business. We’re not pricing too high, rather we are setting a market realistic price. Our suppliers
will provide us food raw materials and books at a lower price, but with good quality. We will
operate 2 types of activity- serving foods, providing library membership. One sector will reduce

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the cost of another sector, that’s how we will achieve economic of scope and eventually our
business will be financially sustainable.

2.6 Eco-friendly

Our Book-Loop café will be very much eco-friendly. First of all, we will minimize the food
waste and reduce the water usage in our café. We will use low-flow spray valves, which will
allow us to use less water while washing dishes. It’s obvious that our café will require a lot of
electricity but, we will try to minimize the energy usage. We will use energy-efficient light
bulbs, such as- LED bulbs. We will strictly manage our stock and expiration dates. We will use
eco-friendly dishes and containers etc. for our café. Hopefully, that’s how we will go green.

2.7 Ethical Issues

We must follow the laws set by the government and obey the Code of Ethics for a restaurant
business. We will ensure the food safety in Book-Loop café. Our staffs, most importantly waiters
will be trained to treat our customers’ right. They will be fair and equal when attending to them.
All quality standards will be maintained here in our café

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3.0 Business Environment Analysis

3.1 PESTEL Analysis

Starting a new business like “book loop café” sector in Bangladesh is quite challenging. Book
Loop Café has a demand in the market and there is a strong competition in this sector. Many
small and big book-loop café are running this business. The political, economic, social, technical,
legal, factor have an effect on business both positive and negatively.

3.1.1 Political Factors

At the present time the political situation is quite stable in Bangladesh to running a business-like
book loop café. But still, there issues related political intervention. As a new business Book Loop
Café will deliberately follow the legislation, as well as prepare them to handle these uncertain
situations.

3.1.2 Economic Factors

At the beginning the Book Loop Café will not be highly profitable. As we know most of the
demand of the book loaf café is quite low, and the cost of the product is comparatively high. If
their inflation in the economy, it will be hard for the business to cope up with the listed prices.

3.1.3 Social Factors

This is one of the most important factors of our business, as our business will run based on the
social phenomenon of Bangladesh. Bangladeshi people nowadays, children, youths and adults

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alike are inclined to use technology for information, entertainment and pleasure. The emergence
of Internet has created an extraordinary change in the reading culture.

3.1.4 Technological Factor

Technology is very important at this present era. We will try to incorporate all the technologies
that are helpful to running our business smoothly. Social media is a good platform to advertise
any business. We will promote our business through these social media. The buy and sell of raw
materials and finished gods database will be update every day

3.1.5 Environmental Factor

To protect the environment from harmful plastic waste, we will serve all our foods with
completely biodegradable cups, plates and cutleries.

3.1.6 Legal Factor

Our café will start its operation with all the necessary legal licensing such as trade license, tax
and VAT license etc. Apart from that we will comply with the labor laws to help protect our
staffs.

3.2 Porter's Five Forces

Porter’s five forces model is a tool to analyze business competitive environment. This framework
shows how the factors are affecting the business in the long run.

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 3.2.1 Competitive Rivalry

There are many competitors in the market. Many of them are offering undifferentiated products
or service. Undifferentiated products reduce market attractiveness. Book loop café will follow
differentiated market strategy and different segment which will able to get customer attraction.

3.2.2 Bargaining Power of Suppliers

The bargaining powers of suppliers are low. The price of the supplies is depending on the
number of supplies, how unique of the product, size, and cost of the switching from one to
another. Book Loop Café switches easily one supplier to another. So that the bargaining power
of supplier is low.

3.2.3 Bargaining Power of Buyers

The bargaining power of buyers is high. As our market is fully saturated by a lot of cafes and
restaurants business, buyers can easily switch to other services if they want.

3.2.4 Threat of Substitute

When the close substitutes exist in the market, it increases the customers switching into the
alternatives. People do not read the books all the time. Online reading books are also very
popular now a day. So, the threat of substitute is high.

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 3.2.5 Threat of New Entry

New entry will increase the competition in the market. The buyers will have more option to
switch to another business. Profitable market always attracts new entry. Entering new company
erodes the profitability of the existing company. The rise of new entry will be a high threat for
Book Loop Café.

3.3 SWOT Analysis

Our workers are well educated student who love

1 Strengths books
The space is attractive and inviting
Long term lease is a low rate.
Popular café makes it easy for customer to linger and
find something to zone

Space is tight
Bank gave us a limited line of credit
2 Weakness Business is slower during summer season
Health insurance cost are increasing
Inventory system need to be upgraded
High stuff turnover due to students graduating

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3 Opportunities
We can have local authors give lectures and book
signings
We can feature things that appeal to summer tourist
We can start a frequent buyer program
We can make personalized recommendations to long
term customers

Large chain have more buying power

4 Threats E book and Ecommerce readers eliminate the physical
books
Younger generation don’t interested the study books

3.4 Stakeholder Analysis

In our Book Loop Café we have some stakeholders. The list of our stakeholders’ are-

 Shareholders - Our group members who invest in our service.

 Customers - Basically male and female are our customers.

 Government - Government will give us permission for this business.

 Co-workers - They are the employees who will provide service physically.

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  Supplier/ Agents - To hire an employee we might need agents or suppliers in our
service. We will have some fixed customer, who will provide us good quality books.

 Key Advisors - Sometimes we might face problems and to get rid of it we need
advisors like- lawyers and marketing agents, banks etc.

4.0 Description of Ventures

The mission of the Book Loop Café is to serve all types of book readers. For example, school,
college, and university goers plus for the senior citizens of the country who would like to grab a
coffee while reading books. Our mission is to make our café a lifestyle brand so we would like to
increase our brand awareness of Book Loop Café by the end of February 2020 by 30%. We
would also like to enhance our web presence by creating an interactive website for our café.
Social media marketing using Facebook, WhatsApp, Twitter and YouTube will help us to reach
our goal in this case. This platform will increase the awareness of our brand to new customers
and the existing customers by 35% in the end of March 2020. By providing rating to the authors
and sharing the newly published books we will get success in our business where customer
satisfaction can be achieved easily. These all are the reasons for choosing the Book Loop Café as
our business.

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 4.1 Products and Services

There will be three major types of products and services in the Book Loop Café. They are-

1. Café service

2. Library service

Café Service: The best tasting coffee beverages along with mouthwatering snacks and desserts
will be offered by Book Loop Café for their customers. We will offer our customers the
following menu:

We will use high graded ingredients and will rigidly follow production instructions to provide
fresh and best quality foods. We will use store designing, menu cataloguing, marketing actions
which will take place on the center to optimize the sales of our offered foods and beverages. In
our menu, there will be different types of coffee like Americano, Cappuccino, Latte, Cold
Coffees, and Chocolate shake, Oreo Shake, Chocolate with Marshmallow, Snacks & beverages
to sell in our café. We will add more items so that customers can also get home delivery service
including ordering online.

Library Service: The major value proposition of the Book Loop Café is the library section. A
warm cup of coffee and delicious waffles or grilled sandwich will be enjoyed by our customers
while reading their favorite books and magazines. The main advantage is they don’t need to pay
a single penny to read those books or magazines. The exclusive service we will offer to the
members if they want to borrow books from our library and for that they need to register and pay
150 Taka for one month.

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 4.2 Size of Business

Book-Loop Café is a great place for community gathering of same minded people. The major
city in which our business will operate is Dhaka and the location is Gulshan area. Nowadays
these areas are very popular for passing leisure to students and mass people. That’s why the
growth expansion and size of the business will also be bigger than any other cafés.

4.3 Office Equipment and Personnel

We will use three storied building, coffee machine, books, furniture, Air-condition, barista, and
many other equipment which we have to buy and it will incur huge cost initially. For the
personnel, we currently do not have a plan to bring any key personnel in our café. However, we
have a plan to bring Muhammed Jafar Iqbal in the near future as Book Loop Café’s ambassador.
We also have a plan to bring Tahmina Anam who is a British Bangladeshi, novelist and
columnist, in our annual gatherings and festivals.

4.4 Background of Entrepreneurs

The entrepreneurs of our business are well educated and they all have proper knowledge to run
our business successfully. We have the experience to increase the market share of current
product, build community, achieve sales goals, expand to new market and use valuable product
and service efficiently.

As we are focusing on building long term relationship with our customers, our future activities
will be focused on designing and developing consumer oriented positive experience through
proper market research.

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5.0 Service Delivery Model

5.1 Merchandising: B2B

The Book Loop Café will serve snacks, desserts, coffee, beverages along with the facility of
reading books. Our food items will be prepared in our café’s kitchen. For the food we will be
purchasing some raw materials like- breads, crusty toast, various kinds of cookies, aromatic rice,
puffed rice from Royal Food Products LTD; quality meats from Bengal Meat; other food
ingredients such as- oils, flavors, spices premix and some necessary machinery items from ANJ
Corporation. We will be importing cocoa and coffee beans from the ‘coffebeansexporters.com’,
an international website for exporting coffee ingredients. We will use all these to make delicious
food items and serve our customers. We must comply with Bangladesh Food Safety Act 2013.

For the book section, we will buy all kinds of books from different publishers, such as- Ananna
Prokash Publishers, Samoy Prokashani, Dibbya Prokash, Maowla Brothers, Seba Prokashani etc.
We will buy books for our café’s library and as well for our online selling of books.

5.2 Inventory Control System

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The inventory control system of The Book Loop Café will be maintained in a methodical way
that is- Perpetual inventory system. We prefer this system for our café because, this will deliver
up-to-date inventory information like, when the raw materials of food items or the books are
received, picked, moved, used from stocks or sold.

5.3 Storage Management

We will also use the JIT or Just-in-time system’s aspect, wherein some of the food materials will
be purchased just a few hours before making the dishes.

The JIT system will eventually cut the necessity of maintaining a big storage. A tone-storied
building situated in Gulshan, will be rented to operate our business. One portion of the building
will be used as our store house. Our selected location is a calm and noiseless place, which will
catch the attention of the book lovers and may make them into potential customers.

5.4 The Flow of The Book Loop Café’s Service

At first, the customers will be welcomed with a warm greeting and Salam, while entering our
café. Then, they will be offered to sit wherever they prefer to sit. After that, they will be provided
with the menu card. They may choose anything of their wishes from the menu. If they wish to eat
and read books together, they can do that. They can bring maximum two books from the library
section at a time. Otherwise, they can read in the library after having their meal or drink. The
members will be able to borrow books for a week. After taking foods and coffees and possibly
reading, customers will complete their transaction via online or offline method. When it comes to
leaving our shop, we will cordially thanks them for stopping by.

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 5.5 The Business Transaction Steps

The Book Loop Café will figure out how to properly record the sales. We will record each &
every sale. In our café we will accept cash, as well as credit cards.

15
The chronological steps are the following-

1. Firstly, we will generate a sales report and record the daily sales.
2. As we are going to be dealing with our suppliers, we will have to handle accounts
payables.
3. Then, we will prepare payroll data to file our payroll taxes correctly and not to be late
while filing and avoid penalties.
4. We will be reconciling our accounts, to know that we have recorded all of our financial
transactions.
5. Last but not the least we will be looking at sales vs. cost of goods sold ratios by using
financial reporting.

5.6 Technology Utilization

As a start-up and to run a business profitably, The Book Loop Café needs to use some
technology. We will build a website and a mobile app for the convenience of our customers.
Using this type of technology will be helpful for spreading our brand name, differentiating our
services from the competitors and that will give us a competitive edge.

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6.0 Operational Plan

6.1 Description Of Company’s Operation

Book Loop Café is a company which is product and service oriented. The main operation is to
sell books, snacks, coffee and deserts to its customers. Book Loop Café will also provide home
delivery service to its customers. The member of the café can enjoy borrowing books from the
café. For this purpose, there will be different kinds of book displayed in the shelves and the
entire general book lover can read those books by sitting in the café. It will be a great operational
opportunity for our members, where no one can borrow book without membership.

The operational plan of our company starts from buying books from the publisher or the whole
seller and selling it to the final customer where the company will not publish any book. We will
sell and do our operational activities only through online. We will provide a kind of library
service that is the customer can read book while having coffee in our café. Customers can enjoy
several kinds of books displayed in different shelves. The members can borrow books from our
café and any customer who will visit our café can enjoy reading books from there. By paying
BDT 1000, customers can take our membership for one year. After getting the membership, the
member will need to review the membership after one year.

Mission: Our mission is to provide a place where the brain & heart meet and a journey begins.

Vision: Our vision is to expand our business as much as possible according to the needs and
preferences of our customers.

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6.2 Flow of Orders for Services

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 6.3 Technology Utilization

To run our business profitably, we will need to use some technology and utilize them properly.
For this, we must build the Book Loop Café almost from the scratch. Our technology utilization
will be possible by building a website which will cost 3 to 4lacs taka, and 2 to 3lac taka for our
mobile app. We will also apply some techniques for technology utilization. For example,
customer will get two things in one roof as we will offer a membership opportunity to our
customer for borrowing from us. Our technology will provide a consistent quality of goods and
services. The online sales of our product and home delivery service along with using the
technology, we can achieve our operational competitive advantage and also increase our brand
image.

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7.0 Marketing Plan - 7P’s of Book Loop Café

7.1 Product

Consumers will get foods such as different type of coffees in various flavors such as hot and cold
coffees with Americano or cold coffees depending on customers demand.

7.2 Pricing

Book Loop Café will do penetration pricing to grab the market. There is already a main existing
competitor Bengal Boi with other cafes and restaurants. To beat the competition we will reduce
our price of products and services initially then we will increase it gradually if we get enough
response from our customer.

7.3 Promotion

We will do 360-degree campaign which is also known as Integrated Marketing Communication

(IMC) campaign, where we will do Sales Promotion by giving discounts to our customers. We
will make online commercials for our advertising purpose. We will also do Public relations by
giving free text books to unprivileged children.

7.4 Place

Our placing of the product will be Gulshan area because there are no similar café in this area
which will give us first mover advantages. Also the place is already popular to our customers.

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 7.5 Packaging

We’re doing business with Eco-friendly products. So, we won’t use any material that can harm
the environments. So, we’ve decided that we’ll use Paper Bags or Jute Bags for the packaging.

7.6 Positioning

The location of café showcases a clear picture in the mind of the target audience. The picture is
closely linked with the brand, its reputation, mission and values. Let’s consider the basic
approaches which will help to make the right choice of market positioning.

7.7 People

Demographic segmentation is extremely important to all marketing departments since the data is
easily available and thus drastically affect buying pattern. We’ll target people of age between 12
and 60. Our special focus will be on students.

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8.0 Organizational plan

8.1 Form of Ownership

This will be an equal partnership based business organization by the founder members. Each of
the partners will be general partnership member and share all the profit, loss, risk, liabilities and
other business related issues equally. There will be a contract of legal relationship among the
partners.

8.2 Identification of Partners

Our business initially consists of five members. Management and control of the business will be
done by the decision of the five members.

The Five Partners Are:

Auniruddha Dewan Aunik

Aoishee Saha
Saif Al Hasan Chowdhury
Saimun Hasan
Nawshaba Ali Chowdhury

8.3 Terms of Agreement

Partnerships should negotiate their terms of agreement before starting the business. Some
fundamental aspects and issues that we found important are described below:

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 8.3.1 Capital

The initial capital that needed for business should be shared equally by the entire member. This
entitles each partner will have 20 percent share of the business. No partner will pay any interest
for their capital that invested. If anyone invests more to expand or develop our business that
person will get interest according to bank rate.

8.3.2 Withdrawal or Death

In the contract, a partner can only withdraw the capital with the consent of other partners. For the
death of a partner, the share or percentage will transfer to the will of the partner if stated, or his
or her inherent. But, the inherent can only participate in decision making with the consent of
other partners.

8.3.3 Net Profit and Loss

Profit and loss will distribute equally to all the partners. 10 percent of profit will kept for future
development and expand of the business.

8.3.4 Banking Arrangements

We will also do transactions through bank. The business will open bank accounts for making
transaction easier for our customers. Moreover, customers can pay through Bkash, Nagad or
Rocket to make transactions easy.

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 8.4 Management Team Backgrounds

The business will run according to all the members’ decision. All the partners will participate in
decision making for the business. Management team backgrounds are:

 Auniruddha Dewan Aunik

Position: Chief Executive Officer

Mr. Auniruddha Dewan Aunik has working experience from several multinational organizations.
He has what it takes to lead a team. We believe his experience and creating new ideas will help
to make our company better one.

 Aoishee Saha
Position: Head of Marketing & Human Resource.

Ms. Aoishee Saha has depth knowledge about marketing and human resource management. She
is well capable to carry out the task. Her task will be to look after our human resource and
marketing sector.

 Saif Al Hasan Chowdhury

Position: Head of Operation & Customer Relation

Saif Al Hasan Chowdhury has previous experience about how does a company operate. He’s
quite good with operational plan. Also he has good communication skill. That’s why he will be
also being the head of customer relation.

 Saimun Hasan
Position: Head of Accounting & Finance

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Mr. Saimun Hasan has both academic degree and work experience on Accounting & Finance
sector. He has a better understanding when it comes to accounts and financial modeling. That is
why he has been given Head of Accounting & Finance.

 Nawshaba Ali Chowdhury

Position: Head of Management

Mrs. Nawshaba Ali Chowdhury has a bachelor’s degree in management. She has better
knowledge when it comes to manage an entire process and she head leadership qualities as well.
Therefore she has been given the position of Head of Management.

8.5 Roles and Responsibilities of Partners

Chief Executive Officer

 Having long term and short-term goals.

 Implementing mission and vision.
 Making management decisions.
 Having knowledge about various departments and their progress.
 Make sure the business runs smoothly

Head of Accounting & Finance

 Preparing monthly, quarterly, half yearly and yearly accounts

 Managing budgeting decisions
 Developing financial and tax strategies
 Handling payroll

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 Keeping records of transactions and preparing final statements
Head of Marketing & HR

 Preparing the marketing plan

 Create content for all media channels
 Forecasting sales
 Regularly implement social media and offline marketing
 Overseeing the development of promotions and offers

Head of Operation & Customer Relations

 Developing and building relationships with clients and key personnel within customer
companies.
 Solving areas of concern as raised by clients when needed
 Doing client satisfaction surveys and reviews and providing them to all the departments.
 Communicating with internal departments to ensure client needs are fulfilled effectively.
 Managing the smooth running of the business including ensuring that the operations are
functioning efficiently
 Developing the administrative operations and processes
 Preparing long-term strategies by coordinating with the other partners and their respective
departments
 Monitoring the functions of the various departments and finding out inefficiency.

Head of Product Management

 Leading the Product Management team with a focus on enhancing the definition and growth
of the product in its market
 Overseeing the development and management of the product’s roadmap based on the adopted
strategies and vision
 Overseeing the innovation and improvement of the business’s product as well as the day-to-
day product activities in such a way that ensures that the product is constantly growing to suit
the consumers’ needs
 The role of Head of Product Management demands that the individual in its occupation be a
highly analytical individual who is able to work quite effectively in a matrix environment.
 The position of Head of Product Management is of cross-functional nature and this implies a
high level of collaboration with different departments and different levels.

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9.0 Assessment of Risk

9.1 Weaknesses of Our Business

Many competitors: Though our main competitor is Bengal Boi, but all the other cafes and
restaurants are also our major competitors. As we are a new business company, it’ll be hard for
us to compete.

Brand Conscious People: People are very much concerned with brand nowadays and they have
a tendency to go to cafés that are already well known. Therefore it is a big challenge for us to
target this customer group.

Online Reading of Books: There are many websites that offer free book reading opportunities
for book readers for which many readers do not bother to go to a café for reading books.

9.2 New Technology

We are not that affected by the technology as our service is mainly offline based.

9.3 Contingency Plan

In business, there is always an uncertainty, which is the ever present phenomenon of a business.
To guard uncertainty, one needs to have backup plan so that he can cope up with the unforeseen
changes that are likely to occur.

If our business doesn’t work in future, than we can start selling books and stationary items as
well. We will open our own website and sell books online beside our café service.

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10.0 Financial Plan

Initially we are going to start our business with our personal money. We do not want to take any
long-term debt or do not want to sell our share to venture capital firms or other. We will think
about that in future if we need money or long-term debt to expand your business but for the 1 st
year, we are not going to take any long-term debt. We have five partners and every individual
has equally investment in the business. For the 1st year initial investment is:

Cash 100,000
Advertising 50,000
Shop Rent & Securities 350,000
Equipment & Machineries 70,000
Furniture & Decoration 250,000
Apps & Website Development 80,000
Hiring Employee 50,000
Purchase of Books 50,000
Total Investment Needed 1,000,000
Per Member Investment 200,000

10.1 Assumptions

We are assuming for 5 years that our service provide or growth rate in 1 st year every month will
increased by 3%. 2nd and 3rd year growth rate hope fully increased by 6%.The last 4 th and 5th year

28
it will be increased by 9%. We have a reason to take this percentage firstly based on our analysis
and beside that we were taken the minimum level of service provide in 1st year.

1 year every month Growth Rate 3%

2 and 3 Year Growth Rate 6%
4 and 5 Year Growth Rate 9%

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 10.2 Pro Forma Income Statement

For the end of the year 2019

  January February March April May June July August September October November December Total
Sales 628,050 646,892 666,298 686,287 706,876 728,082 749,925 772,422 795,595 819,463 844,047 869,368 8,913,304
Cost of Goods Sold 392,400 404,172 416,297 428,786 441,650 454,899 468,546 482,603 497,081 511,993 527,353 543,173 5,568,952
Gross Profit 235,650 242,720 250,001 257,501 265,226 273,183 281,378 289,820 298,514 307,470 316,694 326,195 3,344,352
Operating Expense
Rent 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 960,000
Utility 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 240,000
Salary 80,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 520,000
Advertising 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
Expense
Advertising 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12,000
Prepaid Expense
Incurred
Maintenance 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 60,000
Expense
Entertainment 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12,000
Depreciation 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,400
Kitchen Supplies 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
and Expense
Total Operating 194,200 154,200 154,200 154,200 154,200 154,200 154,200 154,200 154,200 154,200 154,200 154,200 1,890,400
Expense
Operating Income 198,200 249,972 262,097 274,586 287,450 300,699 314,346 328,403 342,881 357,793 373,153 388,973 3,678,552
Earnings Before 41,450 88,520 95,801 103,301 111,026 118,983 127,178 135,620 144,314 153,270 162,494 171,995 1,453,952
Income Tax
Income Tax 0 0 0 0 0 0 0 0 0 0 0 0 0
Net Income 41,450 88,520 95,801 103,301 111,026 118,983 127,178 135,620 144,314 153,270 162,494 171,995 1,453,952
Allocation of Net - - - - - - - - - - - 300,000 300,000
Income to partners

Retain Earning 41,450 88,520 95,801 103,301 111,026 118,983 127,178 135,620 144,314 153,270 162,494 171,995 1,453,952

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 Income Statement
For the end of the year (2019-2023)

  2019 2020 2021 2022 2023

Sales 8,913,304 9,448,102 10,014,989 10,916,338 11,898,808
Cost of Goods Sold 5,568,952 5,903,090 6,257,275 6,820,430 7,434,268
Gross Profit 3,344,352 3,545,013 3,757,714 4,095,908 4,464,540
Rent 960,000 1,017,600 1,078,656 1,175,735 1,281,551
Utility 240,000 254,400 269,664 293,934 320,388
Salary 520,000 551,200 584,272 636,856 694,174
Advertising Expense 60,000 63,600 67,416 73,483 80,097
Advertising Prepaid Expense Incurred 12,000 12,720 13,483 14,697 16,019
Maintenance Expense 60,000 63,600 67,416 73,483 80,097
Entertainment 12,000 12,720 13,483 14,697 16,019
Depreciation 14,400 14,400 14,400 14,400 14,400
Kitchen Supplies and Expense 12,000 12,720 13,483 14,697 16,019
Total Operating Expense 1,890,400 2,003,824 2,124,053 2,315,218 2,523,588
Operating Income 3,678,552 3,899,266 4,133,221 4,505,211 4,910,680
Earnings Before Income Tax 1,453,952 1,541,189 1,633,660 1,780,690 1,940,952
Income Tax - - - - -
Net Income 1,453,952 1,541,189 1,633,660 1,780,690 1,940,952
Allocation of Net Income to partners 300,000 318,000 337,080 367,417 400,485
Retain Earning 1,453,952 1,541,189 1,633,660 1,780,690 1,940,952

10.3 Cash Flow Projections

Cash Flow Statement

For the end of the year (2019-2023)
  2019 2020 2021 2022 2023
Operations Activities
Net Income 1,453,952 1,541,189 1,633,660 1,780,690 1,940,952
Add Back: Depreciation Expense 14,400 14,400 14,400 14,400 14,400
Allocation of Net Income 300,000 318,000 337,080 367,417 400,485

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Increase in Account Receivable (200,000) (212,000) (224,720) (244,945) (266,990)
Decrease in Account Payable 100,000 106,000 112,360 122,472 133,495
Cash Provided (used) in operating activities 1,668,352 1,767,589 1,872,780 2,040,034 2,222,342
Investing Activities
Apps & Website Development (350,000) - - - -
Kitchen Equipment (80,000) - - - -
Security (96,000) - - - -
Furniture (100,000) - - - -
Net Cash Provided by (used in) Investing Activities (626,000) - - - -
Financing Activities
Short Term Loan (18,764) (6,224) (5,678) (6,551) (1,449)
Cash Flow From Financing activities (18,764) (6,224) (6,000) (5,051) (1,449)
Cash Flow 1,023,588 1,761,365 1,866,780 2,034,983 2,220,893
Beginning Cash Balance 1,000,000 2,023,588 3,784,953 5,651,733 7,686,716
Ending Cash Balance 2,023,588 3,784,953 5,651,733 7,686,716 9,907,609

10.4 Pro Forma Balance Sheet

Balance Sheet
For the end of the year (2019-2023)
Assets   2019   2020   2021   2022   2023

Current Assets
Cash and Cash Equivalent 1,000,000 2,023,588 3,784,953 5,651,733 7,686,716
Account Receivable (200,000) (212,000) (224,720) (244,945) (266,990)
Total Current Assets 800,000 1,811,588 3,560,233 5,406,788 7,419,726
Long-Term Assets
Office Rent Securities 300,000 96,000 96,000 96,000 96,000

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Office Equipment (PC) 80,000 70,000 60,000 50,000 40,000
Depreciation 10,000 70,000 10,000 60,000 10,000 50,000 10,000 40,000 10,000 30,000
Furniture 50,000 - (50,000) (100,000) (150,000)
Depreciation 50,000 - 50,000 (50,000) 50,000 (100,000) 50,000 (150,000) 50,000 (200,000)
Good Will 100,000 115,000 132,250 152,088 174,901
Intangible Assets
Apps & Website 350,000 350,000 350,000 350,000 350,000
Development
Total Fixed Assets 820,000 571,000 528,250 488,088 450,901
Total Assets 1,620,000 2,382,588 4,088,483 5,894,876 7,870,627
Liabilities                    
Current Liabilities                    
Account Payable 100,000 106,000 112,360 122,472 133,495
Short Term Loan (18,764) (6,224) (5,678) (6,551) (1,449)
Long Term Liabilities
Total Liabilities 81,236 99,776 106,682 115,921 132,046
Owner's Equity
Aunik 165,250 159,642 162,631 169,819 180,873
Saimun 165,250 159,642 162,631 169,819 180,873
Oishe 165,250 159,642 162,631 169,819 180,873
Nawshaba 165,250 159,642 162,631 169,819 180,873
Saif 165,250 159,642 162,631 169,819 180,873
Retained Earnings 1,453,952 1,541,189 1,633,660 1,780,690 1,940,952
Total Owner's Equity 2,280,202 2,339,399 2,446,815 2,629,785 2,845,317
Total Liabilities and 2,361,438 2,439,175 2,553,497 2,745,706 2,977,363
Owner's Equity

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 10.5 Breakeven Analysis

Multi Service Break Even Point In Units

  Hot Coffee Cold Coffee Sugar Library Service Snacks & Soft Total
Free Cookies Drinks,
Coffee Mineral
Water

Americano Cappuccino Latte Choco Oreo Chocolate with Zero Sugar Monthly Per
Fun Fun Marshmallow Touch Membership Hour
Fee Fee
Selling Price Per Service 160 170 165 165 165 170 150 150 10 160 20 1485
Variable Cost Per Service 145 155 140 145 145 145 125 0 0 100 15 1115
Contribution Margin Per 15 15 25 20 20 25 25 150 10 60 5 370
Service
Contribution Margin Ratio 9.38 8.82 9.09 9.09 9.09 8.82 10.00 10.00 150.00 9.38 75.00 1.01
Per Service
Sales Mix of Service 7 7 7 9 8 9 8 5 2 6 15 83
Weight Average Selling 165 166.67 150 80 160 20 741.67
Price Per Service
Weight Average Variable 146.67 145 125 0 100 15 531.67
Cost Per Service
Weight Average CM Per 18.33 21.67 25 21.67 60 5 210
Service
Break Down of the Break                    
Even Sales of Service  Total = 4762
(Units) Units

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 Multi Service Break Even Point In BDT

  Hot Coffee Cold Coffee Sugar Library Service Snacks Soft Total
Free & Drinks,
Coffee Cookie Minera
s l Water

American Cappuccino Latte Choco Oreo Chocolate Zero Monthly Per

o Fun Fun with Sugar Membershi Hour
Marshmallo Touch p Fee Fee
w
Selling Price Per
Service 160 170 165 165 165 170 150 150 10 160 20 1,485
Variable Cost Per
Service 145 155 140 145 145 145 125 - - 100 15 1,115
Contribution Margin
Per Service 15 15 25 20 20 25 25 150 10 60 5 370
Sales Mix of Service
9 9 9 9 9 9 10 10 150 9 75 309
Sales Mix &
Contribution Margin 141 132 227 182 182 221 250 1,500 1,500 563 375 5,272
Sales Mix & Selling
Price 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 16,500

Breakdown of the                      Total =

Break Even Sales 31,296.95
Revenue of Service
BDT

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 Weighted average CM Ratio=
Sales Mix & Contribution Margin / Sales Mix & Selling Price
= 5272/ 16500
= 31.952%

 Break Even in Units = Total Fixed Cost/ Weighted Average CM Per Service
= 10, 00,000/ 210
= 4762 Units

 Break Even in BDT = Total Fixed Cost/ Weighted Average CM Ratio

= 10, 00,000/ 31.95
= 31,297 BDT

Break Even (Units) = 4762 Units

Break Even (BDT) = 31,297 BDT

10.6 Sources and Application of Funds

Cash 100,000
Advertising 50,000
Shop Rent & Securities 350,000
Equipment & Machineries 70,000
Furniture & Decoration 250,000
Apps & Website Development 80,000
Hiring Employee 50,000
Purchase of Books 50,000
Total Investment Needed 1,000,000
Per Member Investment 200,000

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11.0 Conclusion

Book Loop Café is one of the first combined café and library in our Dhaka city. Our targeted
customers’ are mainly middle to rich income based people with the concept that “One can
read books at our café to enrich their knowledge as well as they can enjoy our hospitality with
light refreshment”. There are many people who want to read books at a nice place to get inner
and mental peace. We want give such an experience where they can fuel up their mind, brain,
and soul. Book Loop Café is a nice place to enjoy foods and read books as people read books
from the café and share their thoughts and knowledge with others. Our success will be gained
through this because knowledge is power and we are here to help promote the concept through
by our café.

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1. (n.d.). Retrieved from https://bengalboi.com/.
2. www.thebookloopcafebd.weebly.com