A Report On Business Plan of Birishiri Resort Project

Business plan of
Birishiri Resort project

Entrepreneurship and Project Development F-306
Course Code: F-306

Course Name: Entrepreneurship and Project Development
“Business plan of Birishiri Resort project”
Submitted to-
Junnatun Naym
Lecturer,
Department of finance,
University of Dhaka
Submitted by-
ID no. Name Remark

18-070 Asif Abdullah
18-092 Tahmina Akter
18-128 Md. Muhasinur Rahman
18-138 Md. Jahed Hossain
18-160 Tanveer Ahmed
18-258 Fakhrul Islam
B.B.A. 18th Batch

Section- B
University of Dhaka
Submission Date: November 15, 2014
Business plan of Birishiri Resort project 2 | Page

PREFACE
After the successful completion of the course titled as ‘Entrepreneurship and Project
Development’ and respective course code F-306 of the BBA program under the
Department of Finance, Faculty of Business Studies, University of Dhaka; we have
prepared this report, as a course requirement. It provides us an opportunity to lessen the
gap between the theoretical knowledge & practical experiences. To enhance the analytical
competence and entrepreneurial attitude, the students of the 18th batch, section B were
assigned to prepare term papers on entrepreneurial project development and a real life
business plan of the project, which has undoubtedly put fresh thrust to our understanding
and practical knowledge that will help us in the future. Preparing this report is a great way
to collect information from different sources which contributes to our theoretical
knowledge very much.
We believe practical experiences of working with a group will surely give a better
understanding of our theoretical knowledge.

LETTER OF TRANSMITTAL
November 15, 2014

Junnatun Naym
Lecturer,
University of Dhaka
Subject: Submission of Term Paper.
Dear Madam,
It is an immense pleasure for us to submit the term paper, which is prepared as a partial
requirement of the course titled as “Entrepreneurship and Project Development (F-306)”
of BBA program under Department of Finance, Faculty of Business Studies, University of
Dhaka. The study mainly focused on the “Business plan of Birishiri Resort project” The
experience that we gather through this study will help us in our career indeed. It was an
opportunity of rediscovering our potentials and excitements. This report gave us an
occasion to apply our theoretical expertise, sharpen our views, ideas, and communication
skills.
We would like to convey our special thanks and gratitude to you for patronizing our effort
& for giving us proper guidance and valuable advice. We have tried our best to cover all
the relevant fields. We are looking forward to receiving your cordial approval of our
submission.
Yours Sincerely,
___________________________ ____________________ ____________________

Md. Muhasinur Rahman (18-128) Asif Abdullah (18-070) Tahmina Akter (18-092)
______________________ ____________________ ___________________

Md. Jahed Hossain (18-138) Tanveer Ahmed (18-160) Fakhrul Islam (18-258)
B.B.A. 18th Batch

Section- B
University of Dhaka

ACKNOWLEDGEMENT
First of all we express our gratitude from heart to the Beneficent, the Merciful, &
Almighty Allah for giving us the strength and patience to prepare this report within the
assigned time.
We are deeply indebted to our honorable course teacher, Junnatun Naym, Lecturer,
Department of finance, University of Dhaka for his guidance and precious contribution in
preparing the report.
We do also express our heartiest gratitude and thanks to all our respondents & industry
persons for giving us such attention and time, with whom we have met during the
preparation of the report.

EXECUTIVE SUMMARY
Business plans are documents used for planning out specific details about your business.
They can range in size from a simple few sentences to more than 100 pages with formal
sections. While business plans are synonymous with start-ups, business planning is
important for all businesses, regardless of their age or maturity. A business plan is
essentially a future-oriented description of how you intend to trade as a commercially
viable operation. The process of business planning is, in and of itself, a worthwhile pursuit
as it forces the manager to remove themselves from the day-to-day tactical and responsive
mode in which many managers operate. In particular, they must take into account the
resources at the company’s disposal and plan to maximize the return on capital, with the
resources at their disposal.
Bangladesh is a land of scenic beauty. The country is blessed with natural beauty which
attracts the tourists. It has beautiful beaches as well as the longest beach in the world. It is
proud of its beautiful heritage and historical relics. To make best use of the natural gift, the
country has developed facilities of modern hotels, motels, rest houses, youth inns and
restaurants, well modern modes of communication, are available at all tourist attractions.
Now for the globalization facility the scope of tourism industry is increasing. That is also a
better way of generating sustainable GDP for Bangladesh. The contribution of Travel &
Tourism to Gross Domestic Product is gaining significance day by day.
Hospitality Industry is now-a-days, one of the major industries in many countries of the
world. This comprises operation of hotels, motels, resorts, guesthouses, rest houses, picnic
and recreation spots etc. while industrialists, businessmen, professionals, working people
and of course tourists are the principal customers. In fact in many countries, hospitality
industry is the principal source of foreign exchange earnings. Tourism indicates touring
activities by local inhabitants and foreign visitors throughout the country. In order to
develop tourism many preconditions have to be fulfilled, such as proper infrastructure,
abundant, cheap and secured commuter facilities road, rail, water and air abundant, cheap
and secured staying places viz. hotels, motels, resorts etc. furnished with recreational and
entertainment facilities; abundant and secured tourist spots viz. historical places, beaches,
parks, waterfalls, lakes, rivers, hills and hill tracts etc. and lastly a peaceful political and

administrative atmosphere in the country. Hospitality industry and tourism are closely
related, one cannot thrive without the development of the other. Hospitality industry
cannot march forward without the foreign visitors and tourists, the local inhabitants form
only a portion of the customers.
In our report we worked on the business plan of a resort in Birishiri, Netrokona which is
becoming famous among the tourists due to its scenic beauties and places. Our report is
divides among six parts showing almost all the elements of a medium size business plan.

TABLE OF CONTENT
Introduction ......................................................................................................................... 10
Origin Of The Report ...................................................................................................... 10
Objectives Of The Report ............................................................................................... 10
Methodology ................................................................................................................... 10
Scope Of The Report....................................................................................................... 11
Limitation Of The Report................................................................................................ 11
Part 1: Business Introduction .............................................................................................. 12
1.1 General description of the resort .............................................................................. 12
1.2 Industry Background ................................................................................................ 12
1.3 Company Background.............................................................................................. 12
1.4 Goals and Milestones ............................................................................................... 13
1.5 Uniqueness of our Service ....................................................................................... 14
Part 2: Management aspect ................................................................................................. 15
2.1 Ownership Aspects .................................................................................................. 15
2.2 Managerial Aspects .................................................................................................. 15
Part 3: Technical Aspect ..................................................................................................... 17
3.1 Introduction .............................................................................................................. 17
3.2 Utilities ..................................................................................................................... 17
3.3 Information and communication technology ........................................................... 17
3.4 Supplies & sources of raw materials ........................................................................ 18
3.5 Structure and civil works ......................................................................................... 18
Part 4: Marketing Aspect .................................................................................................... 20
4.1 Market Analysis ....................................................................................................... 20
4.2 SWOT Analysis ....................................................................................................... 21
4.3 Competitor Analysis ................................................................................................ 22

4.4 Porter’s five forces model ........................................................................................ 23
4.5 Marketing Mix ......................................................................................................... 25
4.6 STP Analysis ............................................................................................................ 27
Part 5: Financial Aspects..................................................................................................... 29
5.1 Cost of project .......................................................................................................... 29
5.2 Means of financing................................................................................................... 30
5.3 Working capital requirement and its financing ........................................................ 31
5.4 Sources of revenue ................................................................................................... 31
5.5 Projected income statement...................................................................................... 32
5.6 Projected cash flow statement .................................................................................. 32
5.7 Projected balance sheet ............................................................................................ 32
5.8 NPV and IRR calculation ......................................................................................... 33
5.9 Ratio analysis ........................................................................................................... 34
Part 6: Socio-Economic Aspects ......................................................................................... 35
6.1 Social responsibility ................................................................................................. 35
6.2 Business Ethics ........................................................................................................ 35
6.3 Environmental impact of the project:....................................................................... 36
6.4 Contribution towards the economy: ......................................................................... 37
Conclusion .......................................................................................................................... 38
Reference............................................................................................................................. 39
Appendix ............................................................................................................................. 40

INTRODUCTION
In this chapter we tried to describe the origin of the report, objective of the report,
methodology used, scope and limitations of the report.
Origin of the Report

The BBA Program under the department of finance offers a course named
“Entrepreneurship and Project Development (F-306)” which requires submitting a report
on a specific topic determined by the course instructor. The report under the headline
“Business plan of Birishiri Resort project” has been prepared toward the purpose.
Objectives of the Report

There are several objectives to conduct the study which are:
Primary objective: Our primary objective is to know about the entrepreneurial process in
Bangladesh.
Secondary objective:
 To be able to prepare a real life business plan.
 To know about the project development.
 To understand and be able to prepare the financial aspects of a real life
project.
 To understand other relevant aspects of the business plan.
Methodology
To prepare this report we depended on mainly primary data sources. Primary data were
collected by making contact with different persons for preparing the real life business
plan. Secondary data are used where we needed some theoretical information. We
collected our theoretical necessary data from internet and text books.

Scope of the Report

Everything has some advantage which helps that work to be completed thoroughly. We
get some scope which helps us to make a standard report. Major of them are-
 We have collected information from the internet and books. It helps us to
prepare this report easily.
 We have a very smooth access to internet in our computer lab so that we
didn’t face any kind of trouble in this sector.
Limitation of the Report

Every study has some limitations. We faced some usual constraints during the course of
our preparation for the report. The major limitations are as follows:
 We do have limitation on our knowledge about the topics on which we
have prepared the report. So, we face some problems by this side.
 The information which is complex in nature and performing a more
elaborate analysis was not within our extent.
 It would take significant time to thoroughly analysis the topic as the
information about the topics is enormous nature and of serious magnitude.

PART 1: BUSINESS INTRODUCTION
1.1 General description of the resort

The Birishiri Paradise is a resort with a variety of recreational facilities. The resort seeks
to provide lodging for both families and business travelers. This plan describes the ways
the owners will expand advertising, offer a variety of pricing packages, promote
recreational activities, and renovate rooms to attract more guests.
The Birishiri Paradise is a resort offering lodging for vacations, weekends, and over-night
trips. There are ten units each furnished with well furniture, a color television, and an air-
conditioner. Guests have access to a private beach, a swimming pool, and boat docks. The
eighteen docks are reserved for our clients who wish to leave their boat by the week or
month. We also have fishing boats available for rent. There is a store, located on the
premises, offering some personal items as well as souvenirs and small gifts. We are a retail
service business providing a place of lodging and relaxation for both the general public
and business travelers.
1.2 Industry Background

Bangladesh is a beautiful country. It has so many tourist spot like Cox’s bazar,
Shrimongol, Shundarban, hill tracks in Chittagong, Bandarban & Rangamati. So tourism
industry is getting momentum and becoming profitable enough to attract business people
in this sector in our country.
1.3 Company Background

For the purpose of our project, we formed a private limited company. The name of the
company is “JAFT pvt.ltd.”. The company is formed in 2014. And the resort project is the
first project undertaken by the company.
no. of shareholders 20
no of common stock 50
par value of common stock BDT 1,000,000

Vision
 To capture large numbers of customer by providing better services.
 To build an environment which attract customers.
Mission
 To assist in bringing high quality service to our customers and to
participate in the growth and expansion of our national economy.
 To set high standards of integrity and bring total satisfaction to our clients,
partners and employees.
 To become the most sought after 3-star in this area rendering technology
driven innovative services by our dedicated team of professionals.
Core Values
 Place customer interest and satisfaction as first priority and provide
customized products and services.
 Value addition to the stakeholders through attaining excellence in
operation.
 Maintain standard services.
 Contribute significantly for the betterment of society.
 Ensure higher degree of motivation and dignified working environment for
our human capital and respect optimal work-life balance.
 Committed to protect the environment and go green.
1.4 Goals and Milestones

Sustainable growth: Our goal is to provide the best service, cleanliness, and enjoyable
atmosphere for all of our clients.
Leader in business: Create new dimension in the services and try to provide best services
than others. Try to attract foreigners.

1.5 Uniqueness of our Service

Low rates: Best price for 2 guests: BDT 1,000 (for 1 night). No booking fees.
Manage your bookings online: Sign up for a free account. View a single booking
They speak your language: Resort's staff speaks both English, Bangla.
Booking is safe: When you book with us your details are protected.

PART 2: MANAGEMENT ASPECT
2.1 Ownership Aspects

The Promoters
The promoters are entrepreneurs who conceive idea of a new business unit, do the
groundwork to establish it and subsequently become a part of the management. In our
resort project we are six in number who belongs to the promoters and entrepreneurs
conceiving the information about the business and do the groundwork to establish the
project.
Share Holding of the Owner

The shareholders of our business project will hold 100% of the equity. There are 20
shareholders in our business project.
Legal form of Business

Company registration in Bangladesh is performed via the Registrar of Joint Stock
Companies and Firms (RJSC), the body responsible for ownership related issues as
governed by company laws in Bangladesh.
2.2 Managerial Aspects

Organization Structure
For the simplicity of our operation, our company will follow a flat organizational structure
with standard form of company management hierarchy.
Management Team
The management team shows the strength of the people starting the business. The
management team of our business project typically consists of the promoters and a handful
of key management personnel.

Banks
To successfully administer the business project, we have to open a local bank account at
Birishiri for necessary transactions. We can open a savings account at Sonali Bank for our
daily transactions. We also take a long term bank loan from a commercial bank for 20
years.
HR Management
The following discussion is for the resort undertaking. Human resource manager finds out
the sections where recruitment is required. According to the staffing need the human
resource manager will have the responsibility to recruit potential candidates for the
required posts.
Staffing need for the resort by HR manager

Particulars No. of Staffs No. of Staffs
(On Season) (Off Season)
Management of the resort 5 5
Security Guard 20 10
Cook 8 4
Staffs 25 10
Total 58 29
HR manager also prepares the staffing budget for the staffing requirements of the resort.
Particulars Salary (Per Cost (On Cost (Off

Head) Season) Season)
Management of the resort BDT 60,000 BDT 60,000
Security Guard BDT 4,000 BDT 80,000 BDT 40,000
Cook BDT 10,000 BDT 80,000 BDT 40,000
Staffs BDT 5,000 BDT 125,000 BDT 50,000
Total BDT 345,000 BDT 190,000

PART 3: TECHNICAL ASPECT
3.1 Introduction
Computer programs greatly simplify the financial recordkeeping for today’s businesses.
Our resort will need to watch its expenses closely. By utilizing the existing software
packages available in resort industry, including room and facility management database,
controlled bar and inventory measuring system, and room key cards that that allow patrons
to charge directly to their room account, this technology will assist management in
controlling costs, reducing cash management and maximizing revenue.
3.2 Utilities
We will try to provide maximum utilities to our guests so that they feel comfortable and
praise to others about our resort. Our rooms will be well spacious with sufficient utility
products such as electricity, LED television; air condition; well shower system and some
rooms have refrigerators too. Apart from that, we have enough gas supply, cooking
materials and well managed food store. Our utilities will fascinate our guests for sure.
3.3 Information and communication technology

We want to do something different from our near competitors. We will launch a website
where all information related to our resort will be available. Anyone who will visit our
website gets all information like room rent, facilities, food availability and so on. We will
also have several email accounts where clients can send emails and our information and
communication manager replies to all email messages.
We will also have several land phones and few mobile phone. Clients can pre order or
book rooms without facing receptionists. Anyone can collect any information regarding
our resort or about the place they come to visit by these land phones or mobile phone.

3.4 Supplies & sources of raw materials

All supplies and raw materials will be collected from local market of Netrokona and
Dhaka.
3.5 Structure and civil works

Construction of building
The construction of the building will be given to a building construction firm on contract
basis. They will provide all the materials needed for the construction and be responsible
for the structure of the building. They will build the whole building for us. We will
contract with the firm for 3 core Taka. The construction of the building supposedly will
take 1.5 to 2 years to finish the whole structure of the building.
Design of the building

The construction site is composed of 50 shotangsho of land approximately valued at BDT
10,000,000 in the selected place for the Resort at Birishiri, Durgapur Upozila in Netrakona
District which is about 200 km away from Dhaka city. The building will be 3 storied
building composed 50 to 60 rooms approximately with a ground-floor entirely for the
purpose of lobby, restaurant and other administrative purpose. We will hire an architect
engineering who will be assisting us during the whole process of the construction to the
start of our operation. He will also act as a coordinator between us and the building
construction firm.
Civil Structural Construction

Civil Structural Construction Works right from foundation stage to the completion stage,
which includes erection of form-work, steelwork, concreting. We will use specialists and
engineers in this purpose. Our work for Civil Structural Construction is as follows.
 Foundations
 Substructures
 Super structures
Architectural and Finishing Works

 Finishing works & painting and laying of marble floors

 Fixing of joinery works like doors windows, Painting, Tiling, Screeding

and Ornamental Work
 Dry Partitions, False Ceiling
Masonry Works and Plaster

This part includes masonry works of all types such as fixing of solid/ hollow/ aerated
cement concrete, various types of plaster including decorative type with both manual and
mechanized techniques
HVAC, Plumbing and Electrical Works

We will employ highly experienced and competent workforce for execution of HVAC,
Plumbing and Electrical works.
Waterproofing and Insulation Works

Waterproofing and Insulation forms essential part of all the modern architectures. It
controls the temperature directly, and affects the movement of moisture to and from the
building spaces. We will use specialized and trained workforce for undertaking various
kinds of Water Proofing and Insulation Work.

PART 4: MARKETING ASPECT
4.1 Market Analysis

Birishiri Paradise Resort, like all businesses, is affected by forces and trends in the market
environment. These include economic, geographical, competitive, legal/political, and
technical.
Economic Environment
Positive forces include the generally developing economy that is currently in place,
creating employment, rising wages, leading more people to be able and willing to spend
money and to get away for some time. The resort will give an affordable opportunity to
enjoy the beauty of Birishiri.
Geographical/Competitive Environment
The Birishiri Paradise Resort is located at Birishiri, Durgapur Upozila in Netrakona
District which is about 200 km away from Dhaka city. It’s not only blessed by charismatic
natural beauty, is also reach in ethnic culture as there are many ethnic groups like –
Hajong, Garo, Achik and Mandietc live here. The main attraction of Birishiri is the
ceramic hill of Durgapur and the picturesque landscape along the Shomeshwari River.
Except the rainy season it’s hard to find any water in the river and that’s why the river
changes its landscape color with the seasons. Ranikong is another beautiful place at
Birishiri where there is a border camp between India and Bangladesh and from there the
scenic beauty of hills and river gives a overwhelming pleasure. There is also an ethnic
museum at Birishiri. It’s a must place to visit while you are in Birishiri.
Legal/Political Environment
Birishiri Paradise Resort will not move the project forward until it has obtained permission
from the Deputy Commissioner an trade license from the Durgapur municipal authority.
As faced by all businesses, the proper insurance needs shall be met and all operations and
policy manuals shall be reviewed by appropriate legal experts. The facility will obtain all
the necessary building permits prior to construction.

Technology Environment
Computer programs greatly simplify the financial recordkeeping for today's businesses. As
a small business, Birishiri Paradise Resort will need to watch its expenses closely. By
utilizing the existing software packages available in the hotel industry, including: room
and facility management database, and controlled inventory measuring systems, this
technology shall assist management in controlling costs, reducing cash management, and
maximizing revenue. Birishiri Paradise Resort shall attract the resources necessary to train
and operate the system in order to generate the reports and manage the inventory.
4.2 SWOT Analysis

Strength
 Beautiful location,
 Travel and Vacation spot,
 Rapid growing demand as a tourism spot,
 Need of a better hotel service at Birishiri for the tourists,
 First luxurious resort at Birishiri,
 Very low competition,
 Easy financial and governmental support for developing tourism.
 Price and cost advantage.
Weakness
 Weak brand value,
 Poor road infrastructure in some areas,
 Remote area,
Opportunity
 Diverse target markets,
 Developing tourism spot,
 Other business opportunity like ceramic, stone, sands business or
transportation etc,
 Improvement of transportation facilities.

Threats
 Natural calamities mainly flood,
 Limited staff and skill availability.
4.3 Competitor Analysis

Competitive Environment
Very few hotels are built at Birishiri. There are only two hotels named YWCA and YMCA
which serves the tourists who visit Birishiri. The quality of service of those hotels is so
poor compare to their hotel fees. People do not want pay a visit with their family in
Birishiri for accommodation and food problem. So, Birishiri Paradise Resort will help
them by reducing such problems by giving them a luxurious accommodation experience
and helps them to enjoy the tremendous beauty of Bangladesh which is laid down at
Birishiri.
Competitive Advantage
Resort is the first which serves people a high quality hotel and The Birishiri Paradise
Resort utilizes the four building blocks of a competitive advantage:
 Luxury: Birishiri Paradise Resort is the first luxurious resort at Birishiri. It
will lessen the problems of the tourists who want to stay at Birishiri as well
as give a charming and peaceful experience to them itself.
 Quality: The Birishiri Paradise Resort is a luxury hotel, with of course
great quality. That includes the quality of the service, rooms and food. .
From the linens and pillows in the room, the delicious food we ate for
dinner. . Along with that, resort values itself on quality and provides it
whenever required.
 Package tour service: Birishiri Paradise Resort will give not only hotel
service but also some package services to the customers like family tour,
honeymoon trip, convention center etc.
 Responsiveness to Customers: Birishiri Paradise Resort tries to serve the
all possible classes of customers. It tries to find out customer’s needs as
well as solving their problems regarding resort service.
 Industry Keys to Success: these are as following.

1. A property designed for the guest and/or lounge patron,

2. Controlled overhead and operational costs,
3. Regular and ongoing guest feedback,
4. Latest technology/software capacity,
5. Unique, timeless and comfortable environment,
6. Dedicated management and associate support staff.
4.4 Porter’s five forces model

The five competitive forces model is a framework for understanding the structure of an
industry. The framework is comprised of the forces that determine industry profitability.
These forces are: the threat of substitutes, the entry of new competitors, rivalry among
existing firms, the bargaining power of suppliers, and the bargaining power of buyers.
Now we discuss how this model is used for our industry profitability analysis.
Threat of substitutes
In general, industries are more attractive when the threat of substitutes is low. This means
that product or services from other industries can’t easily serve as substitutes for the
product or services being made and sold in the focal firm’s industry.
As our business, providing luxurious hotel and resort services, our threat of substitutes are
Low. Because local lower class hotel will try to attract customers at a lower cost. In the
area and its adjacent, there is no good quality and standard grade hotels or resorts to serve
both national and international tourists. But we hope we will get enough customer because
of our higher class services, as the extent to which suppress the profitability of an industry
depends on the propensity for buyers to substitute alternatives.
Threat of new entrants

In general, industries are more attractive when the threat of entrants is low. This means
that competitors cannot easily enter in the industry. There are number of ways that firms in
an industry can keep the number of new entrants low .These barriers to entry are-
economies of scale, product differentiation, capital requirements, cost advantages
independent of size, etc.

To make a luxurious hotel capital is a major fact. It isn’t easy to gather a large sum of
money to start this type of business. This will create an advantage for us. The other
barriers will also help us to keep the threat of new entrants low.
Rivalry among existing firm

In most industries, the major determinant of industry profitability is the level of
competition among the firms already competing in the industry. There are four primary
factors that determine the nature and intensity of the rivalry among existing firms in an
industry: number and balance of competitors, degree of difference between products,
growth rate of an industry & level of fixed cost.
For our business rivalry among existing firm is lower because the number and balance of
competitors are lower, degree of difference between products or services are higher as we
will provide first class service and the level of fixed cost is a big factor for the
competitors.
Bargaining power of suppliers

Industries are more attractive when the bargaining power of suppliers is low. There is no
bargaining power of suppliers because we will try to provide best services by collecting
the best materials from different sources therefore the power is in our control.
Bargaining power of buyers

Industries are more attractive when the bargaining power of buyers is low. The bargaining
power of buyers is low because we will try to provide best services. The available hotel
and resorts services are too much lower that tourists don’t want to stay there. If we provide
better services then the customers will accept it without any bargaining.
Threat of industry profitability
Competitive Forces
Low Medium High
Threat of substitutes 
Threat of new entrants 
Rivalry among existing firms 
Bargaining power of suppliers 
Bargaining power of buyers 

From the table we can see the industry profitability is satisfactory. We can emerge our
business without any hesitation.
4.5 Marketing Mix

Defining a proper marketing mix for resort industry is crucial for the success of resort
marketing efforts. A marketing mix is used to indicate the several marketing variables
used by the sales team to target specific guests or target market segments (E.g.: Corporate,
Transient, Groups, Conference, Leisure etc.).
Service / Facilities
This is considered as the first because without this resort marketing team will have nothing
to deliver to the potential guest/ customers. Our resort will offer products like:
 Guest rooms  Health and wellness
 Food and beverage facilities
 Conference facilities  Executive lounge
 Recreational facilities  Business Centre
 Parking facilities etc.

Place
When comparing to other products normally hotels products doesn’t travel to customers
but the customers come to the product. For this reason we select a plot on the selected
location so that customers can easily come to our resort to enjoy their vacations.
Distribution
We will use either direct or indirect distribution methods to reach out its potential
customers, below are few channels:
Direct methods
 Sales through the hotel  Printed media
sales team Advertisements
 Personal telephone calls  Other Media
 Online pay per click or Advertisements
Banner Advertisements  Hotel Website Booking
(Facebook ads etc.) System (WBS)
Indirect methods
 Travel Agents  Independent hotel
 Independent Travel agents representative.
 Event Planners
Promotions and communications

Below are few promotions and communication channel that we will use:
 Brochures  Hotel pens & pencils
 Television commercials  Scratch pads with hotel
 Hotel Websites logo
 Facebook Page  Billboards
 Google + Page  TV Commercials
Room Rate or Pricing:

Defining the correct pricing strategy is one of the most important aspects of the marketing
mix. If the hotel products like Guest rooms, Food and beverage menu etc. are not priced

competitively then the potential guest may reject the use of hotel services. Generally the
hotel room rates are defined as per the below season.
Peak Season
Room type max price
Deluxe double room(TV, free wifi) 2 1000 tk
Super deluxe twin room(AC, TV, free wifi) 2 2000 tk
Super deluxe double room with king bed 2 2500 tk
Executive suite(AC, TV, free wifi with 2 3000 tk
luxury)
Off Season
Room type max price
Deluxe double room( TV, free wifi) 2 700 tk
Super deluxe twin room(AC, TV, free wifi) 2 1200 tk
Super deluxe double room with king bed 2 1800 tk
Executive suite, (AC, TV, free wifi with 2 2500 tk
luxury)
4.6 STP Analysis

Market Segmentation
For the purpose of a resort business, we can segment our market by following criteria’s-
 Economic segmentation,
 Occupational segmentation,
 Regional segmentation.
Target Market
The following groups and individuals are the target market of Birishiri Paradise Resort.
Target Group
 Business travelers,
 Leisure travelers,
 Families,
 Honeymooners.

Target Markets - Consumer:

 New visitors traveling to the area
 Middle- and upper-income bracket
 Returning visitors to the area
 Businesses needing to hold small overnight planning and strategy sessions
 Area wedding parties
 Couples
Positioning and Product Strategy

For its guests, Birishiri Paradise Resort will be positioned as a new, beautifully
landscaped, nature-filled, unique atmosphere hotel with many luxurious services. A full
range of referral services (i.e. transportation, area attractions) will be made available and
tailored to the needs of the particular guest.
Birishiri Paradise Resort will aim to attract business guests and their partners needing to
hold planning or strategy sessions away from the office in a new and comfortable
surroundings.

PART 5: FINANCIAL ASPECTS
Here we tried to focus the necessary parts and information for the understanding of our
project. The detailed financial aspects, calculation and information are given in the
appendix part of the report attached at the end of the report.
5.1 Cost of project

The following table shows the overall cost related to our project. For further information
regarding the cost of project are given in the appendix part. [Appendix, page 1]
overall cost of the project
Land BDT 10,000,000
Land development cost BDT 2,000,000
engineering and architecture fees BDT 500,000
Construction of Building BDT 30,000,000
Fixtures and fittings BDT 5,000,000
Interior decoration cost BDT 45,000,000
premise decoration BDT 1,000,000
power and utilities BDT 1,500,000
vehicles BDT 5,000,000
BDT 100,000,000
The historical value of fixed assets and depreciation expense are as follows.
fixed asset Historical value Salvage Value Depreciation
Building BDT 36,500,000 BDT 7,300,000 BDT 1,460,000
Interior decoration BDT 45,000,000 BDT 9,000,000 BDT 1,800,000
power and utilities BDT 1,500,000 BDT 300,000 BDT 60,000
vehicles BDT 5,000,000 BDT 1,000,000 BDT 200,000
BDT 88,000,000 BDT 3,520,000
We used straight line depreciation method for the calculation of depreciation of fixed
assets. We used 20% of the fixed assets as the salvage value. Depreciation expense is BDT
3,520,000. The historical value of fixed assets is BDT 88,000,000.

The construction cost of the building is BDT 30,000,000 which is the payment to the
construction firm that we hired for the construction of building in the location of the
Resort.
5.2 Means of financing

equity financing BDT 50,000,000
debt financing BDT 70,000,000
total BDT 120,000,000
equtiy financing
no. of shareholders 20
no of common stock 50
debt financing
long term loan @14%, 20 years BDT 70,000,000
We used CAPM to calculate the cost of equity. The formula is as follow

ke= Rf+ β (Rm– Rf)
ke= 0.0825+1.1×(0.14-0.0825)
The cost of equity, ke=0.14575
The cost of debt is after taxed.

kd = 0.14× (1-0.355)
kd =0.0903
The WACC or weighted average cost of capital is 11.34%. [details in appendix]

[Appendix, page 2]
Repayment of long-term bank loan

The long-term bank loan’s principal will be paid back after the maturity term of the loan.
For the repayment of loan we will create a sinking fund provision for the repayment after
the six year of operation.

5.3 Operational Activities

Our operating cost needed for the maintaining the operations in the resort are as follows.
These costs can be considered as the cost necessary to run our Resort. Here we show our
operation activities and cost of sales both divided among on-seasons and off-seasons.
Operation activities
On-seasons BDT 3,450,000
Off-seasons BDT 1,593,600
Total yearly costs BDT 6,143,600
Cost of sales
On-seasons BDT 3,960,000
Off-seasons BDT 1,020,000
Total yearly costs BDT 4,980,000
We finance our operational activities from the cash in hand available to us and from the
revenue income generated from our resort and restaurant operation. [details in appendix]
[Appendix, page 3].
5.4 Sources of revenue

These are our main sources of revenue
1. Rental service
2. Food and beverage
3. Transportation service
4. Investment income.
The yearly expected revenue from the operation of resort is BDT 26,400,000. [details in
appendix] [Appendix, page 4]

5.5 Projected income statement

We prepared the projected income statement in the third year of our project operation as
we used the first two years in the construction and preliminary works before we started the
business. For the first two years’ interest expense will be paid over the next 18 years of the
loan equally with the interest expense for each year.
The projected net income from the income statement is BDT 1,842,378 [details in
appendix] [Appendix, page 5]
5.6 Projected cash flow statement

Net cash inflow/(outflow) for the period (BDT 110,726,511)
Add: Cash & Cash Equivalents at the beginning of the year BDT 120,000,000
Cash & Cash Equivalents at the end of the year BDT 9,273,489
[details in appendix] [Appendix, page 6]
5.7 Projected balance sheet

Fixed assets are shown at their book value (excluding depreciation expenses from the
historical value of fixed assets). We used straight line depreciation @5% for all the fixed
assets. For the first two years’ interest expense will be paid over the next 18 years of the
loan equally with the interest expense for each year. This is adjusted with interest payable
and retained earnings.
The projected total asset and total owner’s equities and liabilities are BDT 120,753,489

5.8 OCF and FCF valuation

The assumptions we have taken are as follow in OCF and FCF valuation. These are as
follow.
FCF growth rate 0.02
sales growth rate 6%
operating income 11%
tax rate 35.5%
discount rate 11.34%
Net Income % of sales 6.98%
EBT growth rate 5%
The growth rate of FCF will be @2% constant over the life time of the firm and we used it
to calculate the terminal value of the firm after the fifth year of operations. The calculated
terminal value is BDT 221,034,037.
The firm value, using discounted FCFs, is BDT 189,150,806.

5.8 NPV and IRR calculation

We consider 5 year expected operating cash flows and after five years the terminal value
of the resort is BDT 221,034,037. The results show a positive NPV of BDT 94,966,850
for this project and IRR is 30.32%which is greater than our WACC of 11.34%. If the
project is undertaken, it will be financially profitable for the company.
The discounted payback period is 8.33 years.


5.9 Ratio analysis

Current Ratio 1.311293
Gross Profit Margin 0.811364
Net Profit Margin 0.069787
Asset Turnover Ratio 0.218627
Equity Multiplier 3.745179
ROE 0.057142
debt-equity ratio 1.4

PART 6: SOCIO-ECONOMIC ASPECTS
6.1 Social responsibility

To us, corporate social responsibility is about much more than business, it goes right to the
heart of philosophy. We are a family company and believe that, by operating in the right
way, we can create a better world for generation to come. We strive to make our resort
socially responsible, treating our communities, guests and stakeholders with the
understanding and respect that we would show our loved ones.
Our resort is a “home away from home” for our guests. As a natural extension, we will be
committed to alleviating poverty, feeding the hungry, and creating place for people in
times of disaster. We will make corporate contribution, fundraise and in kind donation to
help victims of disaster.
We will be committed to training and educating the next generation. We will create
opportunity opportunities through programs that provide work experienced life skills to
youth, and provide on the job training in our resort. Our resort will help young people
from disadvantaged backgrounds by providing employment skills training and vocational
opportunities.
6.2 Business Ethics

Our values can be split into three clear categories – people, guests. Business.
People
 As employers, we will provide a stimulating and ethical environment.
 We will encourage everyone to express their views and to be respectful and
understanding towards each other’s needs.
 We believe in fair recruitment, two-way communication and will continue
to invest in training and development.
 Together we will take pride in our staff facilities and the operational
efficiency of our back of house areas.

Guest
 We will consistently look after our guests with genuine hospitality.
 We will continually seek innovative and valuable feedback from our guest
and staff.
 We will achieve the highest possible standards by maintaining, evolving
and investing in our guest facilities.
Business
 We believe in conducting our business on an ethical manner.
 We will develop and grow the business using a thorough understanding of
how and why our guests use facilities.
 We will have efficiently produced information that is timely, accurate and
meaningful, with appropriate data capture and control.
 We should achieve an equitable return on investment.
6.3 Environmental impact of the project:

Our sustainability strategy supports business growth and reaches beyond the doors of our
resort to preserve and protect our country’s natural resources. We will address
environmental challenges thorough innovative conservation initiatives including rainforest
protection and water conservation.
We will recognize our responsibility to reduce consumption of water, waste and energy in
our resort and corporate office and will be focused on integrating greater sustainability
throughout our business. We will use Energy and Environmental Action Plans (EEAP) to
help our properties, achieving energy and water reduction goals.
We have teamed up to our vendors to provide price-neutral products that conserve energy,
reduce and divert waste and are comprised of more sustainable materials. Low-energy
light bulbs, showerheads that use less water, “room-ready” towels, recycled key cards and
pens, and biodegradable laundry bags are just some of the products that help our resort
meet our sustainability goals. We will also provide guidance to encourage our
sustainability in our kitchen through actions such as purchasing organic and responsibly

sourced food, planting herb gardens, sourcing sea food caught in a sustainable manner and
recycling cooking oil.
Our efforts are more successful when create awareness among associates with guests and
inspire them to partner with us on sustainability initiatives. We invite our guests and
associates to support the environmental awareness through everyday actions at home, at
work and while traveling.
6.4 Contribution towards the economy:

Our resort will make a significant impact on the economy of the economy of our country.
We will create employment for at least 100 people. We not only create employment but
also provide them food and accommodation. We will make Birishiri an attractive place for
tourists since there are no developed hotel and resort in Birishiri and tourists are not
interested to it. But our resort will help to improve socioeconomic condition of the people
of the Birishiri. It also attracts foreign tourists as they are interested to looking for natural
beauty of Beautiful Bangladesh and Birishiri is the right place to observe natural beauty. It
brings foreign currency to our country and thus increases the balance of foreign currency.
Birishiri lacks well developed hotel and resort, well food stuff and recreation center. We
will try to provide all three in one system of our resort. That really helps our economy of
our country to boost up and we hope so.

CONCLUSION
It is evident from the above discussion that tourism worldwide including in the
Bangladesh is an expanding sector. It is already a significant source of foreign exchange
earnings and employment generation in our country. Bangladesh has potentials to harness,
individually and collectively, for development of tourism sector. However, the progress in
cooperation in this area in our region is quite slow, with no substantive achievement even
in any particular area. Low levels of inter-regional tourism within Bangladesh need to be
addressed. It is expected that the governments of Bangladesh, with lessons learned from
other groups in the world, will take vigorous steps to remove the barriers standing in the
way. Bangladesh has many lessons to learn from other countries in the world.

REFERENCE
1. “Entrepreneurship” by Barringer and Ireland
2. “Project development” by Parash Chandra
3. “Financial Accounting: Professional stage (Application level)” by ICAB.

APPENDIX
1. Cost of project page 1

2. Means of financing and cost of capital page 2
3. Operational activities page 3
4. Sources of revenue page 4
5. Projected income statement page 5
6. Projected cash flow statement page 6
7. Projected balance sheet page 7
8. OCF & FCF valuation page 8
9. NPV & IRR of the Project page 9
10. Ratio Analysis page 10

Business plan of Birishiri Resort project Appendix, page 1
cost of project
overall cost of the project
Land BDT 10,000,000
Land development cost BDT 2,000,000
engineering and architecture fees BDT 500,000
Construction of Building BDT 30,000,000
Fixtures and fittings BDT 5,000,000
Interior decoration cost BDT 45,000,000
premise decoration BDT 1,000,000
BDT 100,000,000
depreciation of fixed assets & ATVS
fixed asset Salvage Value Depreciation
Building BDT 36,500,000 BDT 7,300,000 BDT 1,460,000
Interior decoration BDT 45,000,000 BDT 9,000,000 BDT 1,800,000
power and utilities BDT 1,500,000 BDT 300,000 BDT 60,000
vehicles BDT 5,000,000 BDT 1,000,000 BDT 200,000
BDT 88,000,000 BDT 3,520,000
means of financing and cost of capital
own capital and longterm loans from bank
equity financing BDT 50,000,000
debt financing BDT 70,000,000
total BDT 120,000,000 *wacc 0.113404
cost of equity 0.14575
cost of debt 0.0903
equtiy financing wighted avarage
no. of shareholders 20 for equty 0.416667
no of common stock 50 for debt 0.583333
debt financing
long term loan @14%, 20 years BDT 70,000,000
WACC* 11.34%
operational activities
sources operating costs
(on seasons) (off seasons) Yearly cost estimation
Particulars monthly 6 months monthly 6 months
salary & wages BDT 345,000 BDT 2,070,000 BDT 190,000 BDT 1,140,000 BDT 3,210,000
utilities bill BDT 180,000 BDT 1,080,000 BDT 55,600 BDT 333,600 BDT 1,413,600
transportation costs BDT 20,000 BDT 120,000 BDT 10,000 BDT 60,000 BDT 180,000
Insurance primium BDT 500,000
Advertising cost BDT 600,000
other costs BDT 30,000 BDT 180,000 BDT 10,000 BDT 60,000 BDT 240,000
BDT 575,000 BDT 3,450,000 BDT 265,600 BDT 1,593,600 BDT 6,143,600
cost of sales (on seasons) (off seasons) Yearly cost estimation
monthly 6 months monthly 6 months
food & beverage BDT 600,000 BDT 3,600,000 BDT 150,000 BDT 900,000 BDT 4,500,000
maintenance cost BDT 60,000 BDT 360,000 BDT 20,000 BDT 120,000 BDT 480,000
BDT 660,000 BDT 3,960,000 BDT 170,000 BDT 1,020,000 BDT 4,980,000
sources of revenue
Expected Revenue (season wise)
On-season off season
Rental service BDT 13,500,000 BDT 6,300,000
Food and bevarage BDT 5,000,000 BDT 1,200,000
Transportation service BDT 300,000 BDT 100,000
BDT 18,800,000 BDT 7,600,000
Revenue (yearly) BDT 26,400,000
investment income
saving deposit in bank BDT 15,000,000
interest income @ 6% BDT 900,000
projected income statement
Revenues BDT 26,400,000
cost of sales BDT 4,980,000
gross profit BDT 21,420,000
income from investment BDT 900,000
operating revenue BDT 22,320,000
Operating expenses:
salary & wages BDT 3,210,000
utilities bill BDT 1,413,600
transportation costs BDT 180,000
Insurance primium BDT 500,000
Advertising cost BDT 600,000
other costs BDT 240,000
Total operating expenses BDT 6,143,600
EBITDA BDT 16,176,400
Depreciation expense BDT 3,520,000
EBIT BDT 12,656,400
interest expense BDT 9,800,000
EBT BDT 2,856,400
tax expense BDT 1,014,022
net income BDT 1,842,378
projected cash flow statement
tk tk
Cash Flow from Operating Activities
cash generated from operations * BDT 15,276,400
interest paid ** (BDT 10,888,889)
tax paid (BDT 1,014,022)
net cash flow from operating activities BDT 3,373,489
Cash Flow from investing Activities
asset purchase (BDT 100,000,000)
short term investment (BDT 15,000,000) *cash generated from operations
investment income BDT 900,000 profit before tax BDT 2,856,400
net cash flow from investing activities (BDT 114,100,000) depreciation charges BDT 3,520,000
cash flow from financing activities interest expense BDT 9,800,000
proceeds from issue of share interest income (BDT 900,000)
proceeds from long term loan BDT 15,276,400
net cash flow from financing activities **net interest paid
Net cash inflow/(outflow) for the period (BDT 110,726,511) current interest BDT 9,800,000
Add: Cash & Cash Equivalents at the beginning of the year BDT 120,000,000 portion of interest payable BDT 1,088,889
Cash & Cash Equivalents at the end of the year BDT 9,273,489 total paid BDT 10,888,889
projected balance sheet
ASSETS
fixed asset**
land BDT 12,000,000
Building BDT 35,040,000
Interior decoration BDT 43,200,000
total fixed asset BDT 96,480,000
Current asset
investment BDT 15,000,000
cash and cash equivalent BDT 9,273,489
total current asset BDT 24,273,489
total asset BDT 120,753,489
OWNER'S EQUITIES AND LIABILITIES
liabilities
current liabilities
interest payable* BDT 18,511,111
longterm liabilities
longterm bank loan @14%, 20 years BDT 70,000,000
total liabilites BDT 88,511,111
owner's equtities
common stock BDT 30,400,000
retained earnings BDT 1,842,378
total owner's equities BDT 32,242,378
total owner's equities and liabilities BDT 120,753,489
*net interest payable
interest payable BDT 19,600,000
paid BDT 1,088,888.89
BDT 18,511,111
** depreciaton calculation of fixed asset are shown in the cost of project sheet [in appedix,page 1]
OCF & FCF valuation
assumptions
FCF growth rate 0.02
sales growth rate 6%
operating income 11%
tax rate 35.5%
discount rate 11.34%
Net Income % of sales 6.98%
EBT growth rate 5%
particulars Year-1 Year-2 Year-3 Year-4 Year-5
NET SALES BDT 26,400,000 BDT 27,984,000 BDT 29,663,040 BDT 31,442,822 BDT 33,329,392
EBIT BDT 12,656,400 BDT 14,048,604 BDT 15,593,950 BDT 17,309,285 BDT 19,213,306
depreciation,depletion&amortization BDT 3,520,000 BDT 3,520,000 BDT 3,520,000 BDT 3,520,000 BDT 3,520,000
EBT BDT 2,856,400 BDT 2,999,220 BDT 3,149,181 BDT 3,306,640 BDT 3,471,972
Tax Expense BDT 1,014,022 BDT 1,064,723 BDT 1,117,959 BDT 1,173,857 BDT 1,232,550
net income BDT 1,842,378 BDT 1,952,920.68 BDT 2,070,096 BDT 2,194,302 BDT 2,325,960
OCF BDT 15,162,378 BDT 16,503,881 BDT 17,995,991 BDT 19,655,428 BDT 21,500,756
Change in NWC (BDT 1,320,000) (BDT 1,399,200) (BDT 1,483,152) (BDT 1,572,141) (BDT 1,666,470)
after tax EBIT BDT 8,163,378 BDT 14,048,604 BDT 15,593,950 BDT 17,309,285 BDT 19,213,306
FCF BDT 10,363,378 BDT 16,169,404 BDT 17,630,798 BDT 19,257,144 BDT 21,066,837
terminal value BDT 221,034,037
no. of year 1 2 3 4 5
discount factor 0.8981 0.8067 0.7245 0.6507 0.5844
discounted FCF BDT 9,307,866 BDT 13,043,423 BDT 12,773,748 BDT 12,531,037 BDT 141,494,732
Firm value BDT 189,150,806
NPV & IRR of the Project
Discount rate 11.34%
Year-0 Year-1 Year-2 Year-3 Year-4 Year-5
OCF BDT 15,162,378 BDT 16,503,881 BDT 17,995,991 BDT 19,655,428 BDT 21,500,756
Opportunity Cost (BDT 10,000,000) BDT 10,000,000
Change in NWC (BDT 1,320,000) (BDT 1,399,200) (BDT 1,483,152) (BDT 1,572,141)
(BDT 1,666,470)
NCO (BDT 90,000,000)
Terminal Value BDT 221,034,037
PCF (BDT 100,000,000) BDT 13,842,378 BDT 15,104,681 BDT 16,512,839 BDT 18,083,287 BDT 250,868,323
no. of year 1 2 3 4 5
Discount factor 0.89815 0.80667 0.72451 0.65072 0.58445 Total
Discounted PCF BDT 12,432,529 BDT 12,184,540 BDT 11,963,771 BDT 11,767,183 BDT 146,618,828 BDT 194,966,850
NPV BDT 94,966,850
IRR 30.32%
Discounted Payback period
Discount rate 0.1134
OCF growth Rate 0.02
OCF No. of year Discount Factor Discounted OCF Cumalative OCF Remaining Balance
Year-0 (BDT 100,000,000) 0 (BDT 100,000,000)
Year-1 BDT 15,162,378 1 0.89815 BDT 13,618,087 BDT 13,618,087 (BDT 86,381,913)
Year-9 BDT 23,273,110 9 0.38031 BDT 8,851,023 BDT 105,896,485 BDT 5,896,485
Year-10 BDT 23,738,572 10 0.34158 BDT 8,108,536 BDT 114,005,020 BDT 14,005,020
Discounted Payback
period 8.33 year
Ratio Analysis
Current Ratio 1.311293
Gross Profit Margin 0.811364
Net Profit Margin 0.069787
Asset Turnover Ratio 0.218627
Equity Multiplier 3.745179
ROE 0.057142
debt-equity ratio 1.4

A Report On Business Plan of Birishiri Resort Project

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

A Report On Business Plan of Birishiri Resort Project

Uploaded by

Copyright:

Available Formats

Business plan of

Birishiri Resort project

Course Code: F-306

“Business plan of Birishiri Resort project”

ID no. Name Remark

B.B.A. 18th Batch

Submission Date: November 15, 2014

Business plan of Birishiri Resort project 2 | Page

Business plan of Birishiri Resort project 3 | Page

November 15, 2014

Subject: Submission of Term Paper.

___________________________ ____________________ ____________________

______________________ ____________________ ___________________

B.B.A. 18th Batch

Business plan of Birishiri Resort project 4 | Page

Business plan of Birishiri Resort project 5 | Page

Business plan of Birishiri Resort project 6 | Page

Business plan of Birishiri Resort project 7 | Page

Origin Of The Report ...................................................................................................... 10

Objectives Of The Report ............................................................................................... 10

Scope Of The Report....................................................................................................... 11

Limitation Of The Report................................................................................................ 11

Part 1: Business Introduction .............................................................................................. 12

1.1 General description of the resort .............................................................................. 12

1.2 Industry Background ................................................................................................ 12

1.3 Company Background.............................................................................................. 12

1.4 Goals and Milestones ............................................................................................... 13

1.5 Uniqueness of our Service ....................................................................................... 14

Part 2: Management aspect ................................................................................................. 15

2.1 Ownership Aspects .................................................................................................. 15

2.2 Managerial Aspects .................................................................................................. 15

Part 3: Technical Aspect ..................................................................................................... 17

3.1 Introduction .............................................................................................................. 17

3.2 Utilities ..................................................................................................................... 17

3.3 Information and communication technology ........................................................... 17

3.4 Supplies & sources of raw materials ........................................................................ 18

3.5 Structure and civil works ......................................................................................... 18

Part 4: Marketing Aspect .................................................................................................... 20

4.1 Market Analysis ....................................................................................................... 20

4.2 SWOT Analysis ....................................................................................................... 21

4.3 Competitor Analysis ................................................................................................ 22

Business plan of Birishiri Resort project 8 | Page

4.4 Porter’s five forces model ........................................................................................ 23

4.5 Marketing Mix ......................................................................................................... 25

4.6 STP Analysis ............................................................................................................ 27

Part 5: Financial Aspects..................................................................................................... 29

5.1 Cost of project .......................................................................................................... 29

5.2 Means of financing................................................................................................... 30

5.3 Working capital requirement and its financing ........................................................ 31

5.4 Sources of revenue ................................................................................................... 31

5.5 Projected income statement...................................................................................... 32

5.6 Projected cash flow statement .................................................................................. 32

5.7 Projected balance sheet ............................................................................................ 32

5.8 NPV and IRR calculation ......................................................................................... 33

5.9 Ratio analysis ........................................................................................................... 34

Part 6: Socio-Economic Aspects ......................................................................................... 35

6.1 Social responsibility ................................................................................................. 35

6.2 Business Ethics ........................................................................................................ 35

6.3 Environmental impact of the project:....................................................................... 36

6.4 Contribution towards the economy: ......................................................................... 37

Business plan of Birishiri Resort project 9 | Page

Origin of the Report

Objectives of the Report

_______

____ _