An Assignment

on
Small Business Management
MGT-306

Prepared for
Saira Banu
Assistant Professor

Department of Management

University of Dhaka

Prepared by
Group No-9

Id Name
142 Mahfuja Mamataz Mili
141 Ashfaq Ahmed Rajvi
168 Shohag Ahmed
171 Saima Siddique
201 Mehedi Hasan Toru
170 Tofayel Miah
225 Tarannume Jahan
255 Monjur Hossain

Date of submission: 20August, 2017

August 20, 2017

Ms. Saira Banu

Assistant Professor

Department of Management

University of Dhaka.

Dear Madam,

Attached is our business plan for “kid’s World” .After reviewing the attached
business plan, you will, I am sure, agree that the potential for success for this type
of business is excellent. The key elements that will make this business a success
includes quality products and good relationship with customers provided by an
owner and employees who are dependable and not afraid of hard work.

Thank you for your time. We hope you will review our business plan.

Sincerely

Mahfuja Mamataz Mili

On behalf of

Group No-9
Kid’s World
Business Plan

Step 1: Commitment

Back in 2015, we had a dream to own and manage a small business that would provide
customers quality products specially kid’s dress. Now after one years of planning, saving for
initial startup costs, working in this type of business, we are prepared to transform the original
dream into a reality. We are highly motivated to own and manage our own business because it
will allow us to make decisions based on our ideas, experience and research. Realizing the
amount of hard work and money required, the potential risks involved and the rewards of
business ownership, we feel strongly that we are destined to be a small business owner.

Step2: Analyzing Ourselves

Initially we realized that we had to obtain three key ingredients to achieve success. First
ingredient was experience in business. The second key ingredient was knowledge regarding kid’s
dress as this is very sensitive and quality must be ensured. We obtained practical experience by
taking job in small business and knowledge by analysis, interpretation power and talking with
customers. Finally the last key ingredient was financing. To obtain the business necessary to
open our business, we began a savings and investment program designed to provide the initial
capital required to open the business.

Step3: Choosing a Product or Service

The owner and employees of “kid’s world” will strive to provide quality kid’s dress specially
whose age between 0-5 years. The unique thing regarding “kid’s world” is it provides
fashionable and comfortable dress in fair price for kids. And our business location is New
Market, Dhaka.

Step4: Researching Market

Basically parents of the kid’s that means middle aged and old people are the main customer. We
can find thin type of customer mostly in city and in town area where the people wants to
maintain a high society through their dress up. Their income should be up to the mark by which
they can afford their kid’s desired dress. If they have an average income of 40000 thousands per
month, it’ll be good their purchasing.
They must buy the product by measuring the perceived value of the product. The price of the
product and the benefit of the product must be in equal position. That means if the dress has
extra feature then the price may be tagged as extra. As our product is kid’s dress, customers buy
it frequently. Customers take a big number dresses because kid’s need many dress than adults.
Dress is basically bought when it is needed. But kid’s dresses may be bought frequently, they
need many dress to use. And in occasion customer buy more than they need. At first ours is an
essential product and we try our best to maintain the quality that’s why customers will buy our
product.

Every business must have competitors, so do we have. The business which is related with the
kid’s dress is ours competitors in market. We can measurer it by the response of the customer.
And also we have to consider our market place in current situation. After finding the all
marketing research the ultimate result will show us whether we growing more or not.

Step5: Forecasting sales and Revenue

It is essential for surviving in market with a handsome profit margin. We have to first forecast
our market share by which we can measure our growth rate. It also helps us to set our goal to
know about our current position in market. Sales revenue also does the same thing. By
calculating it in sequential process we can make our business for effective and efficient. We have
to make the sales revenue calculation in three steps in three year First year it will be calculated in
monthly figure, Second year it will be calculated in quarterly figure and the last time in year
three it will be calculated yearly figure.

Step6: Choosing Site

We choose New Market area to sell our product. We prefer this site because-
 New Market is a well known area for clothing.
 Huge customer gathering.
 Non brand customer.
 Lack of loyal customer who will buy from anyone if they provide quality.

Step7: Developing a Production Plan

Our production plant will not be huge. As we are just in starting level, we will start with a small
production plant. We need some sewing machine around 15. And people to run this. We will
control the quality and inventory in manual way at the beginning. Two people will be appointed
for inventory management and quality control.
Step8: Developing a Marketing Plan

We are going to create customers of “Kid’s World” by self promotion, signboard, online
advertisement, banner, personal selling. And we provide the clothing at a fair price in accordance
with the price of competitors.

Step9: Developing an Organizational Plan

Although Kid’s World will be organized as a partnership business, it will be managed more like
a sole proprietorship –especially the first year. As we decide to start our business on Kid’s dress,
the skills and talents we must need are as follows-

1. Fashion designer: The requirement needs by a fashion designer are as follows

 a good eye for colour, texture and shape
 technical skills like pattern cutting and sewing
 the ability to spot and develop trends
 drawing skills
 the ability to use computer design packages
 the ability to solve problems

2. Costume designer: Costume designers are responsible for the overall look of the clothes
and costumes, the requirement need are bellow

 Leadership
 organizational skills
 to be aware of costs
 a good eye for detail
 the ability to work under pressure and meet deadlines
 good research skills, with a knowledge of costume history and modern
fashion
 3. Computer consultant: A computer consultant, to make sure the latest technological
advances.

4. Clothing alteration hand: As we have Kid’s dress business we also need clothing
alternation hand experts for adjust and repair garments and clothes. The workers need
good sewing skills – both by hand and on a machine.

5. Accountant: An accountant, to prepare monthly income statements and yearly balance

sheets.

6. Banker: A banker, to help finance either expansion or renewal.

7. Insurance agent: An insurance agent make sure the growing venture is safely covered
against the unknown.

8. Marketing researchers: A strong group of marketing researcher is badly need in today’s

competitive market place to know the changing fashion, market growth, pricing strategy,
market segmentation, set target market etc.

9. Advertising account executive: To do promotional activities of our products a

specialized advertising executive is very important because a products success largely
depend on advertising.

10. Lawyer: A lawyer, to do checkups once a year and to keep our the business up to date on
such matters as tax, labor, and worker-safety laws.

Accountants, lawyers, bankers, insurance agents, and computer consultants provide outside
professional help, but we also need some other employee as for help. We also need some
employees for production, transportation, as sales people, online order, and other official
activities. For this, we can recruit our employee from some reputed university, also we can hire
specialized employee.
No organizational plan is complete without an organizational chart, which traces the lines and
responsibility and authority between jobs. We also have an organizational chart that are given
bellow-

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Step10: Developing a Legal Plan

After Consultation with Md. Hasan Mahmud, an attorney who specializes in terms of business
venture, we decided that Kid’s World should be partnership business to avoid potential legal
problems. There are three essential elements to a general partnership:

1. A sharing of profits and losses,

2. A joint ownership of the business, and
3. An equal right in the management of the business.
Businesses as partnerships do not have to pay income tax; each partner files the profits or losses
of the business on his or her own personal income tax return. This way the business does not get
taxed separately.

1. Easy to establish.
2. There is an increased ability to raise funds when there is more than one owner
3. Wider pool of knowledge, skills, and contacts.
4. Improved management with more than one owner.

That’s why we choose to start our business as general partnership business. As there are some
advantages of partnership business.

Step11: Developing an Accounting Plan

After consultation with Kabir Hossain, a certified public accountant, we decided to use a
computerized accounting system that will be customized to meet the specific needs of Kid’s
World. We will need details records of cash receipts and account receivable. In addition, the
computerized accounting system will generate sales invoice. We also decide that we will
maintain the day to day accounting records. Mr. Kabir Hossain will examine our accounting
records on a quarterly basis and prepare necessary financial statements.

Step12: Developing an Insurance Plan

After consultation with Sanzida Ahmed , an independent insurance agent, we determined that
Kid’s World does need insurance coverage in three areas. First we need property insurance. This
insurance covers equipment, signage, inventory and furniture in the event of a fire, storm or
theft. Then Worker’s Compensation insurance. This will cover medical treatment, disability and
death benefits in the event an employee is injured or dies as a result of his work with that
business. At last fire insurance against the risks of fire.

Step13: Developing a Computer Plan

Because of the large number of customers that we will serve, we will need a computer to help
manager. Specifically the computer will be used to complete the following tasks:
 Maintaining all accounting records, including cash receipts and account receivable.
 Prepare all invoices for customers.
 Maintain online orders.
Step14: Developing a TQM Programs

We try to ensure continuous improvement at every stage of production of our product. And for
this reasons we develop some programs which fulfill customer’s satisfaction.

Raw Materials: All the raw materials of our products are collected from appropriate parties and
are checked before is being used in production.

Improved Technologies: We will use all modern equipment necessary to produce quality
products.

Experienced and Skilled Workers: All the workers of our organization are skilled and
experienced.

Color guaranty and Replacement: We will provide color guaranty of our products and also
change the product if the color fade away.

Step15: Developing a Financial Plan

A financial plan binds all the preceding steps by translating operating plan,production ,
marketing ,organizational and all other plans related to the operations of the venture in Taka.

1. We will use accrual basis accounting system to record our daily transactions.
2. We will prepare the-
Balance sheet for the beginning and the end of the first year. The preliminary financial
statement of our company is given in the below-
 Assets Taka Equities Taka

Current asset: Liabilities:

cash 200000 Brac bank loan 70,000
start- up expense 100000 3,00,000 Owner’s equity 3,00,000
Fixed asset:

computer 30000
cabinet 20000
table 5000
chair 15000 70,000

Total assets 3,7,0000 Total equity 3,70,000

The Cash flow will be prepared according to -

Cash In Taka

---------------- ------

--------------- -------

Cash Out
--------
---------------
---------
---------------
----------
--------------

Surplus of cash inflow ------------

And the Income Statement will be like the forma-

Sales Taka
-------- -------
------- --------

Expenses
---------- ------
--------- ------
Profit -------

Financing the business: The financing of our business will be-

1. We receive a SME loan from Brac Bank.

2. All the owners of bank our business will contribute by providing 3, 00,000 Tk as capital.
3. Thus our total equity is now 3, 70,000.