Business Pitch

Course: MGT 368

Section: 01

Prepared by:
Mehnaz Ahmed Khan (1610168030) (50)
Mohammad Sazzad Khan (1620425030) (50)
Shohanur Rahman Shohan (1530839630) (40)
Tahsin Islam (1611452030) (45)

Submitted to:
Mohammad Asif Gazi (MAG)
Lecturer
Department of Management

Date of submission: 25/08/2019

We Eat Waste to Save The Rest
 Letter of Acknowledgement

25th August 2019

Mohammad Asif Gazi

Lecturer, Department of Management

School of Business and Economics, North South University

Subject: Submission of Business Pitch on “Waste Eaters”

Dear Sir,

With due respect it is a pleasure for us to have the opportunity to present our business pitch on

“Waste Eaters” as a requirement of the course Entrepreneurship, under the BBA program of

North South University. First we would like to thank our respected and beloved faculty

Mohammad Asif Gazi for his precise guidance and constant effort which allowed us to finish

our business pitch in due time with ease.

We also would like to admit the support of Fahim Uddin Shuvo, Founder and CEO of

GARBAGEMAN who shared valuable information of the company and industry with us

without which the project would have been difficult to complete if not impossible.

Last but not the least, we appreciate the invariable support and coordination of our group

members that allowed us to finish our work in prescribed time.

Yours Sincerely,

Mehnaz Ahmed Khan (1610168030)

Mohammad Sazzad Khan (1620425030)

Shohanur Rahman Shohan (1530839630)

Tahsin Islam (1611452030)

 Executive Summary

This business pitch report is based on an idea of manufacturing of vermi-compost company

called “Waste Eaters”. “Waste Eaters” is a vermi-compost manufacturing company that has an

aim to free the society from hazardous effects of landfill expansion, pollution of soil water and

air. It is an unique idea where the raw material used here is organic waste. As the process of

urbanization is rapidly progressing so is the increment of waste. Use of the scientific knowledge

in order to make the society more sustainable and relying on renewable resources is one of the

major concern in this modern age.

The value proposition of the product is we are converting the waste that was supposed to go to

the landfill but ending up as a raw material for our organic vermicompost fertilizer. We are

working for a better and cleaner Dhaka. With a more scientific approach and improved waste

management system and utilization of waste, our strategies focuses on reduction of “use of

landfills” and its environmental hazards. At the same time creating employment opportunities

and improving their skills, socioeconomic and health-care condition is also our goal. “Waste

Eaters” is entering a niche market where municipal waste has not been recycled on any sizeable

scale in Dhaka or any other region in Bangladesh. This is a unique and viable concept that

addresses the needs of various customers and reaches an untapped market with tremendous

growth potential. Due to a large need for these products and services, and a lack of direct

competition, our projection of quick profitability is attainable. Moreover, our fertilizer is far

better and superior in quality than any other fertilizer available in the market. Furthermore, we

incorporate our customers to be more concern at how to dispose waste segregating organic and

inorganic and a part of the process of saving the waste from going to the landfill being more

sustainable.
 Table of Contents
Introduction .............................................................................................................................. 1

Name of the Business ............................................................................................................. 1

Statement of the financing need ............................................................................................. 2

Statement of confidentiality off report ................................................................................... 2

The team and experience ......................................................................................................... 3

Skills that can contribute in the venture ................................................................................. 4

Justification ............................................................................................................................ 5

Evidence of the problem .......................................................................................................... 6

Business Environment Analysis .............................................................................................. 8

PESTEL Analysis ................................................................................................................... 8

Porter’s five forces analysis ................................................................................................... 9

SWOT Analysis.................................................................................................................... 12

Stakeholders Analysis .......................................................................................................... 13

Market Analysis ................................................................................................................... 15

Target market segment strategy ........................................................................................... 15

Size of Target Market ........................................................................................................... 16

Market Demand .................................................................................................................... 17

Country at a glimpse ............................................................................................................ 19

Industry outlook ................................................................................................................... 20

Business Model ....................................................................................................................... 24

Pricing Model ....................................................................................................................... 27

Social Goal ........................................................................................................................... 27

Sustainability ........................................................................................................................ 27

Eco friendly .......................................................................................................................... 27

Ethical................................................................................................................................... 28

Description of venture ........................................................................................................... 29

 Product ................................................................................................................................. 29

Product usage ....................................................................................................................... 30

Product specifications .......................................................................................................... 31

Office equipment and personnel .......................................................................................... 32

Production plan/ Service delivery model ............................................................................. 33

Raw materials and suppliers ................................................................................................. 33

Technology used in material procurement ........................................................................... 34

Technology used in the production ...................................................................................... 36

Equipment ............................................................................................................................ 40

Technology for packaging .................................................................................................... 41

Technology for storing ......................................................................................................... 42

Technology for promotion, distribution ............................................................................... 42

Operational Plan .................................................................................................................... 43

Customer Service ................................................................................................................. 43

Quality Control ..................................................................................................................... 43

Product and Service Improvement ....................................................................................... 43

Legal environment................................................................................................................ 44

Flow of orders for goods and/or services ............................................................................. 44

Technology utilization.......................................................................................................... 45

Market plan (7 P’s) ................................................................................................................ 46

Product ................................................................................................................................. 46

Pricing .................................................................................................................................. 46

Promotion ............................................................................................................................. 46

Place ..................................................................................................................................... 48

Packaging ............................................................................................................................. 48

Positioning............................................................................................................................ 48

People ................................................................................................................................... 48
Organizational Plan ............................................................................................................... 49

Form of ownership ............................................................................................................... 49

Identification of partners or principal shareholders ............................................................. 49

Authority of principals ......................................................................................................... 50

Management team background ............................................................................................ 51

Roles and responsibilities of members organization ............................................................ 52

Assessment of Risk ................................................................................................................. 55

Weakness of Business .......................................................................................................... 55

Challenges of Business......................................................................................................... 55

Contingency Plan ................................................................................................................. 56

Financial Plan ......................................................................................................................... 57

Pro forma Income Statement ................................................................................................ 57

Pro forma Balance Sheet ...................................................................................................... 58

Pro forma Cash Flow Statement........................................................................................... 59

Net present value (NPV) ...................................................................................................... 60

Break even analysis .............................................................................................................. 60

Growth Analysis ................................................................................................................... 60

Sources and application of funds ......................................................................................... 61

Investment deal .................................................................................................................... 61

References ............................................................................................................................... 62
 Introduction

Name of the Business: Waste Eaters

Address: House – 102, Road – 118, Sector – 42, Uttara, Dhaka – 1230.

Name(s) and address(s) of the principal(s):

Chief Executive Officer: Mohammad Sazzad Khan (House – 102, Road – 118, Sector – 42,

Uttara Model Town, Dhaka – 1230, Phone: +88 23668 652 789)

Chief Marketing Officer: Tahsin Islam (House – 11, Road – 11, Sector – 4, Uttara Model

Town, Dhaka – 1230, Phone: +88 56987 489 312)

Chief Operational Officer: Shohanur Rahman Shohan (House – 45, Road – 18, Sector – 39,

Uttara Model Town, Dhaka – 1230, Phone: +88 26498 562 349)

Chief Financial Officer: Mehnaz Ahmed Khan (House – 100, Road – 104, Sector – 40,

Uttara Model Town, Dhaka – 1230, Phone: +88 45689 254 961)

Nature of the business:

Waste Management Service

The business will be based on waste management service, where we will convert the organic

waste into a better fertilizer than in the market. As Dhaka is rapidly getting urbanized so the

generation of waste has also increased progressively. Moreover, due to overpopulation we need

more land area and cannot allow the expansion of the landfill which is hazardous in nature.

Furthermore, the waste management industry is unique, viable and sustainable that addresses

the needs of various customers and reaches an untapped market with tremendous growth

potential.

Page | 1
Statement of the financing need:

We would like to ask for an investment of 16,00,000 Taka (as per pro forma statements) for a

period of 5 years. Against the investment we would like to offer 30% of the equity. The investor

will get his/her invested amount within 3 years and can enjoy profits further being an owner.

Statement of confidentiality off report:

The undersigned reader acknowledges that the information provided by

_________________________ in this business plan is confidential; therefore, reader agrees

not to disclose it without the express written permission of_________________________.

It is acknowledged by reader that information to be furnished in this business plan is in all

respects confidential in nature, other than information which is in the public domain through

other means and that any disclosure or use of same by reader, may cause serious harm or

damage to _________________________.

Upon request, this document is to be immediately returned to_________________________.

Signature:

Name:

Date:

This is a business plan. It does not imply an offering of securities.

Page | 2
 The team and experience

One of the primary reason to pursue this specific venture is that Bangladesh is a developing

and densely populated country. Dhaka, capital of Bangladesh is expanding rapidly and turning

into a mega city with an enormous growth of population at a rate of around 6 percent a year

(Zahur, M., 2007). Due to the growth of population it has become a viable option for the people

of Dhaka city to live in high rise buildings. Greater number of people living per unit area has

resulted in subsequent increase in municipal waste generation. Consequently giving rise to

problems of waste disposal which has adversely affected both human health and the

environment. Dhaka City Corporation (DCC) is the only formal organization responsible for

waste management in an area of 360 square kilometre with a population of 7 million. The waste

generation of this area is estimated to be around 4000 tonnes every day. The total waste

collection rate in Dhaka is only 37% (Enyaetullah, Khan, S.S.S., Sinha, H.M., 2005).

A significant percentage of the population has zero access to proper waste disposal service.

When waste is not properly collected it is illegally disposed of and this poses serious

environmental and health hazards to city dwellers. Due to lack of funding, there are also

insufficient subsidies put in place for the issue of waste management. The solid waste of Dhaka

generally has a high organic content (60% to 70%) and a low proportion of combustible matter.

Separation of waste according to components and utilizing them can reduce environmental

hazards and save us money. Environmental degradation due to unplanned waste disposal and

improper waste management was not the prime concern even few decades ago in the

developing countries like Bangladesh (Bhuiya et al.2005). The population growth and rise of

complexity in the disposal process made the environmentalist think about the scientific and

efficient waste management. We are working for a better and cleaner Dhaka. With a more

scientific approach and improved waste management system and utilization of waste, our

strategies focuses on reduction of “use of landfills” and its environmental hazards.

Page | 3
We do not have any sort of experience to start a business but this is our business idea which

we believe if we can make this happen it will change the waste management industry and have

a significant impact on peoples’ lives.

Skills that can contribute in the venture:

This venture is all about using organic waste to prepare fertilizer. It is required to have a leader

who sees business not only as a business but also a sustainable way of worth solving problem

by making profit. This person shall always come up with all creative ideas and think out of the

box.

Mehnaz Ahmed Khan here will perform the role of a Chief Financial Officer. Currently he is

pursuing his undergrad studies at North South University majoring in Finance. He has prior

experience of research and he is quite skilled in spreadsheet applications. He worked as a

research assistant with faculty members which will definitely help tremendously in doing

market research. Also he worked in a team of artist management during a classical music fest

organized by Bengal during 2017 which can help him to work as a team in this venture and

also balance the team dynamics. His subject knowledge can help him to make quantitative and

analytical decisions. We need an expert for book keeping purpose and forecasting cash flows

to analyse business performance and his abilities fits the best.

Tahisn Islam will perform the role of Chief Marketing Officer in this venture. She is also

currently pursuing her BBA at North South University majoring in Marketing. She has prior

experience of being a sub executive of the prestigious club NSU YES! where she learned how

to work as a team member and she was engaged in promotional and organizing activities of

different club events. She will be handling our promotional activities of this venture.

Furthermore, she worked as a volunteer in JAAGO foundation which gave her an exposure

towards social service activities that will allow her to understand the market. Also she has the

Page | 4
subject knowledge regarding the marketing field. We believe she is the appropriate individual

in this business who can use proper channel to capture our targeted customer and advertise the

product in such way where it will meet its value proposition.

Shohanur Rahman Shohan is currently pursuing BBA in human resource management at North

South University. He is an ex cadet from Mirzapur Cadet College. Because of his disciplined

lifestyle we chose him to look after the operations. He will be performing the role of Chief

Operational Officer since he has prior experience of doing business before. Moreover, he has

prior experience of logistics and operations since he worked as a volunteer during 25 years

celebration of North South University. Furthermore, his subject knowledge of human resource

management will allow him to better deal with employees than any one of us.

Mohammad Sazzad Khan is also a student of North South University, majoring in Finance and

Marketing. He will be performing the role of CEO because of his diverse experience. He has

prior experience of participating in different business competitions and club activities.

Currently he is the head of publication in ICMA student chapter. During his college years he

was an important part of the organizing team of international summit. He was also a member

of the North South University Debating Club. It is important to have a front person with a great

communication skill which will help to convince stakeholders to understand the business

venture.

Justification:

By the combination of all these expertise, it would be possible to make Waste Eaters a

successful and sustainable business. This type of business always face critical problems all the

time so a creative individual could guide us to the proper solutions. From collecting raw

materials, negotiating with stakeholders we need a good correspondent and it would quite

Page | 5
impossible to get a wide exposure without an expert advertiser. It is mandatory for every

business to evaluate its performance numerically in a sense of accounting and finance.

Evidence of the problem

The most popular technique for the final disposal of urban solid waste is the disposal of solid

waste in open dumps. There are designated dumping sites in some cities and towns where the

collected waste is dumped in an unhealthy way. These dumpsites do not use waste segregation,

waste compaction or daily top seal. In regions where there is no particular dump site, the

situation is even worse. The waste gathered is disposed of in low-lying regions, adjacent water

bodies or on a vacant lot through crude dumping. Much of the waste that is not collected is also

disposed of in the same way. In a study by JICA (2004) it has been found that during wet season

the waste generation rate increases by 46%. In another study by Ahmed (1991) this variation

was found to be within 15% to 50%. As such to estimate the waste generation rates in wet

season an increase of 46% is considered. Finally, average of dry and wet season is considered

to arrive at the average waste generation rate, taking into account the seasonal variation.

Page | 6
The environmental hazards of landfill are given below:

 Green house gas emission

 Surface water contamination
 Ground water contamination
 Land contamination
 Air pollution
 Odour

Vermi-Composting is organic materials biological decomposition. In the process of

decomposition, bacteria, fungi, protozoans, insects, worms and other organisms typically play

a role. Composting is the recycling method of nature. It will transform the clipping of grass,

leaves, vegetables, fruit and other organic materials into a very useful soil modification.

Composting is also an efficient way to reduce the quantity of solid waste that goes into the

landfills of our nation. The Waste Eaters method will significantly accelerate the natural

process of composting. The raw material of our fertilizer is the organic waste going to the

landfill. From the above mentioned graph it is clearly evident that firms like Waste Eaters are

necessary in waste management industry. Another graph illustrating how it would turn out with

the presence of composting.

Page | 7
 Business Environment Analysis

PESTEL Analysis:

Political factors: Political atmosphere in the country is stable these days and it is anticipated

to be in near future. The issues are not to have any possibility to harm the business operation

and the same has no involvement directly to the political territory.

Economic factors: Economic health of the country is in developing phase and warmly

embraces such initiatives. The agro is a key concern for smooth growth of economy and

government along with other authorities completely emphasizing on and patronize this type of

venture.

Social factors: Social environment is in favour of such venture; even this type of venture

promotes social development by making sure the contribution of social units to such noble

cause and at a time by ensuring the social components to be improvised like, limiting

environmental pollution. The venture facilitates the most neglected workforce by making

them an integral part of social development.

Technological factors: The business needs very comfortable technology for production

process, and does not claim any highly capital intensive, import oriented foreign technology.

The technology used in the business utilizes the elements from surroundings, and these are

economic.

Page | 8
Environmental factors: Environmental issues have no objection with this business rather it

enhances the ability of the country to completely comply with environmental development.

The business itself is a tool for developing fair environment.

Legal factors: Legal authorities have very little concern with this business. The business is a

sole proprietorship business and produces products that do not violate any social or legal

commitments that is expected by any business unit.

Porter’s five forces analysis:

Threats of New Entry

Potential Competitors

Our Prime Minister Sheikh Hasina has been trying to make ‘Digital Bangladesh’

possible by investing in many developing sector and technology is one of them. New

digital technologies has offered such advantage to some companies where they can

become potential competitors to other companies. For example; Waste Eaters uses Red

wigglers to make fertilizer from the organic waste. For a certain time there is potential

competitors for this business but when the other recycle companies start to have access

to this Red wigglers, they will be able to make fertilizer like Waste Eaters. The chances

of potential competition are high because we can find around 40 big companies in

Bangladesh who are running recycle business successfully. Threat of new entry is high.

Economies of Scale

This concept deals with such condition when unit costs get low by expanding the output

of the product. Waste Eaters will achieve Economies of Scale (EOS) within 3 months.

Every month we will increase our production making fixed cost constant as we have

expected the demand for the product fertilizer is there. As we are focusing niche

Page | 9
 marketing strategy, we won’t need to spend high amount of capital after the first month

which will enable us to save some money. In the course of time, our distribution channel

will become more efficient which will save more cost. We will make a deal with Pathao

which can be used to send our fertilizer to the purchaser what would be considered as

cost effective strategy. Waste Eaters will be starting to produce standardized fertilizer

after 1 month of experience and expanding its production to a greater quantity if funding

is available. For the new entrants it will be hard to gain EOS while Waste Eaters will

already be present in the market. Social media can also be used to make digital

advertisement as a cost effective method.

Customer Switching Cost

For the new entrants, it will be challenging to get competitor’s customers. Waste Eaters

customers already are aware about it. New entrants will have to make those customers

to know about their products which means customers have to study the market again to

know their existence. Suppose, when a customer of Waste Eaters can place an order of

a fertilizer just with a touch of a fingerpoint and a Pathao Parcel will provide that

product, why would a customer will move on to another company’s product where s/he

has to learn a new way of ordering something. New entrants have high customer

switching cost. Threat of new entry is low.

Rivalry in the Industries

There are so many industries which are competing with each other to capture the major

market share. However, most of the industries are not technologically advanced which

gives other industries an opportunity to come up with a new technology and capture the

major share of the market. Using Red wigglers will give Waste Eaters a competitive

technological advantage over other industries which will help it to compete competitors

Page | 10
 more. Though there will always be competition in the industry, new technology will

help Waste Eaters to grow in a very competitive market.

The Bargaining Power of Buyers

This concept deals with how much degree a buyer has to bargain about the product. We

do not expect our niche customers to buy a large quantity of fertilizer for a small size

garden which means they will have low bargaining power. Waste Eaters will have made

the purchase process very easy so that customers can order our product very easily and

enables to increase customer switching cost high, as a result, bargaining power for

buyer would be low. As we are making fertilizer from the waste material in the

environment so the customers will consider our work to be eco-friendly and loses its

bargaining power.

The Bargaining Power of Suppliers

This concept deals with how much degree suppliers have to bargain about supplies.

Waste Eaters suppliers can be classified into two categories- i. Key Suppliers, ii. Non-

Key Suppliers.

i. Key Suppliers: GarbageMan will be key supplier of our business. They will

provide us the key ingredient which is the Red wigglers. Very few of the

suppliers can provide these. So, key supplier will have more bargaining power.

ii. Non-Key Suppliers: Our targeted flats of some particular houses in Uttara will

be our non-key suppliers. We will buy the organic wastes from them. These

wastes are easily available. So, these flat owners will have comparably low

bargaining power at selling their wastes to Waste Eaters.

In a nutshell, our company will face a balanced bargaining power of suppliers.

Page | 11
Threat of Substitutes

Threat of substitute is considered to be the final force in Porter’s model. Waste Eaters

direct substitute product is the fertilizer of GarbageMan. We will buy Red wigglers

from GarbageMan. It will minimize the competition between Waste Eaters and

GarbageMan because we will become their customers. If we lose our market share,

GarbageMan will also lose a potential customer of Red wigglers. Threat of substitutes

is low.

On the other hand, indirect substitutes would be the local fertilizer providers. However,

our product quality is superior to the local providers. Our focus is to target those

customers who prefer superior quality of fertilizer. So, the threat of substitutes would

be low.

SWOT Analysis

Strengths:

1. Scientific approach and improved waste management.

2. Reduce the usage of chemical fertilizers in farming lands.

3. Decrease the cost of waste disposal by introducing a more efficient waste management

system; thus reduce landfills.

4. Lower down the hazardous impact of improper waste management.

5. Reduce the demand gap of organic fertilizers by increasing usage of organic vermi

compost in the local community.

Weaknesses:

1. Organic wastes are hard to store.

Page | 12
 2. Organic wastes might cause air-pollution.

3. Sometimes it’s hard to identify the appropriate organic wastes for making fertilizers.

4. Red wigglers are sometimes difficult to find.

Opportunities:

1. The rapid growth of high population resulted into a significant increase in household

waste.

2. Everyday 4,500 tonnes of rubbish is dumped in landfill sites under DNCC.

3. The solid waste of Dhaka generally has a high organic content and a low proportion of

combustible matter.

4. New platform for entrepreneurs to provide many jobs in future.

Threats:

1. Arriving of potential rivals.

2. Unplanned waste disposal.

3. Technological development.

4. Discover of new cheap scientific methods.

Stakeholders Analysis:

Customers: Customer plays a vital role as a stakeholder. Business is not possible if there is

no customers. Waste Eaters will target a very niche segmented people. These

targeted people practice homestead agriculture in their balcony or on their roof

top. Most of this people belong to upper-middle class or middle class family.

Gardening is their hobby. In their leisure time, they take care of their plants.

They want to ensure their plants getting appropriate minerals. In order to do so,

Page | 13
 these people never compromise with quality of fertilizer. So, Waste Eaters will

become their first choice to buy the fertilizer

Suppliers: Owners of the flats would be the supplier of our organic wastes. Waste Eaters

will motivate these suppliers by expressing how their contribution and concern

towards environment is playing an important role to save it. We will buy Red

wigglers from our direct competitor GarbageMan. To keep up their selling at

optimum point, GarbageMan will sell the key ingredients at a low price to hold

Waste Eaters as a potential customer which will help them to expand their

business.

Government: Government is now imposing many laws which are concerned with

environment. Government spend a huge amount of expenditure just to destroy

wastes. If someone recycle these wastes, it will save a huge cost of the govt. So,

govt. will encourage such business like Waste Eaters to grow.

Non-profitable Fund:

Such an eco-friendly business like Waste Eaters will get non-profitable fund as

an option to perform a CSR by other big firms. This kind of businesses attracts

big firms for fund because by funding these type of businesses helps them to get

rid of taxes.

Shareholders: Shareholders are the main reasons of running the business. Maximizing

shareholders’ equity is the primary objective of every firm and most of the firms

follow capitalist traits to do so. However, shareholder of this type of eco-

friendly, ethical, sustainable, etc. business are different. They are visionary and

Page | 14
 always think about the welfare of the society first. They are always churning

around with disruptive ideas.

Market Analysis:

At both ends of our supply chain, there are clients who will profit from our services and goods.

Potential clients who will profit from our compost product include farms, suppliers of

fertilizers, nurseries, landscapers, golf courses, homeowners, and even the government for use

in reseeding road construction. Therefore, we have two fundamental market segments; waste

treatment facilities benefiting from our services and customers benefiting from our product.

Landfills are overflowing and sewage and garbage disposal expenses are increasing. City

officials can ease municipal budgets, stop drinking water contamination, and assist farmers

create healthier soils by recycling waste back to farms. We give a service that allows

municipalities to dispose of their waste without having to fill it with soil anywhere. For this to

client, this is of great value. Five main compost market segments were recognized:

 Agriculture ( For food and non-food crops and sod farms)

 Landscapers (for industrial and commercial properties; golf courses, cemeteries, and

athletic fields; landfill covers; and damaged soils)

 Nurseries (for plant and forest seeding crops and reforestation projects)

 Public agencies (for highway median strips, parks, recreational areas, and other public

property)

 Residents (for home landscaping and gardening)

Target market segment strategy:

We looked at market trends to target our customers. Products from Waste Eaters target organic

fertilizer buyers and soil enhancers. In latest years, this market has risen substantially and we

expect to capture an important part of this market. A more health-conscious customer is fuelling

Page | 15
this market development. People are better advised about the potential side effects to their

health and the environment connected with chemical fertilizer goods. Growth of a more organic

gardening approach comes at a time of diminishing chemical options. Researchers indicate that

organic fertilizer-based regenerative agricultural management systems can maintain soil

carbon and nitrogen, thereby lowering emissions. In addition, they maintain that organic

methods can produce the same yields as conventional fertilizer-using systems. Products from

Waste Eater will assist fill the increasing need for organic fertilizers and soil modifications,

while helping to fix the dwindling landfill space issue.

Size of Target Market:

The entire city is full of buildings; very few of those can be found where the owner has no

appetite to have garden in the terrace. Not only has the terrace, each apartment had one or

more than one balcony where trees are found. They are the users of such product.

The below statistics states the agro land measure in the Dhaka and area surrounding Dhaka:

District Net cropped area (in Contribution

square meter)
01. Dhaka 14,65,014 23.10%
02. Gazipur 18,04,962 28.46%
03. Manikganj 13,84,074 21.83%
04. Munshiganj 10,03,656 15.83%
05. Narayanganj 6,83,943 10.79%
Total 63,41,649
Table: Cropped area in five districts

Another target is the growing government projects. Beautification attempt of Dhaka by the

government opens a new market. The islands in the roads and small spaces that are being

planted are good to think for supplying the product. And other space that needs fertilizers

regularly is a good place to supply includes National Zoo, Botanical Garden, and Government

Page | 16
Nurseries etc. The four districts surrounding Dhaka stated above is the most important source

of vegetables, fruits consumed by the capital thus a biggest potential customer (F. Shuvo,

personal communication, July 19, 2019).

Market Demand:

The production of fertilizer in the country is almost one fifth of the demand, thus the market

has scope to grow manifold as both the organic feature and the production supply gap are to

force the market to boost. Especially people who plant trees as a hobby is

much concerned to consume healthy supplements, and consumers of these days seeks

healthy foods though cost is high. Even the farmers are interested in this type of product with

proper marketing and awareness growth as it offers economic cultivation with more

production. The market size considering Uttara, Banani and Gulshan per year there is an

estimated 5.5 million Taka worth vermicompost is required for rooftop gardening. (F. Shuvo,

personal communication, July 19, 2019)

Some graphical representation of statistics:

Page | 17
Page | 18
Country at a glimpse:

 Number of families – 2,86,95,763

 Contribution of agriculture to GDP -14.75%

 Number of families directly active in agriculture – 15,183,183

 Population in agriculture – 35.56 million 2014

 Employment in agriculture - 47.48%

Page | 19
  Crop production index 143 ( 1999-2001 = 100) 2014

 Gross agricultural land – 85,609.65 million square meter

 Gross arable land – 12,458.42 million square meter

 Fertilizer consumption in Bangladesh is 469% of production 2014

 27.9 kg of fertilizer used per square meter 2014

 Agricultural raw material imports – 7.3% of total merchandise imports 2014

 By volume per area of using fertilizer Bangladesh is on 25th position in the

world where Qatar has the highest consuming rate and India is on 54, Pakistan

65.

 Bangladesh uses fertilizer other than chemical fertilizer of 18.90% of total

fertilizer usage 2011

 Vegetables are grown in more than 20.64% area, fruits are grown in more than

0.99% of total area in Bangladesh

Industry outlook:

The industry is stable in nature because the demand of such product is confirmed and the

differentiating nature of the product that is the organic feature is the key driver of the

demand. Current situation, the use of chemical products for growing crops, especially fruits

and vegetables is a great concern of the consumers and people who work on environmental

issues. Health-care people of the country are very eager with the concern and working hard

to make the awareness. Media plays a vital role to make consumers aware of unhealthy

products, consuming chemical and environmental issues. That derived a demand for healthy

food and good environment. Another concept go-green introduced a popularity of tree

plantation especially in the urban area. Everything forces a growth of consuming organic

products (F. Shuvo, personal communication, July 19, 2019).

Page | 20
The growth of using organic fertilizer is -11.04% on an average in 5 years (2006-2011). The

industry is anticipated to grow rapidly for current awareness of the environmental and

health concerns and the import-dependence of the fertilizer usage. Several villages in

Bangladesh, one of those, Jhenaidah, have become a role model in developing the profession

as a way of their economic independence. The easy availability and low costing nature of

the resources, very comfortable production process, steeper demand of the product, and

economic sales and distribution process confirms the financial payback from such business.

The industry is a complete match with the nation’s culture and female workforce can be

involved in the industry easily. Financing need of such business is low that is another driver

for the growth of the industry. It does not need any complicated technology and can be

operated within the house premise. Weather of Bangladesh is good for such production.

Need low promotional activities.

 New entrepreneur in the industry is not a threat to the existing producers rather

they have keen interest to grow the number of members in the community.

 It is very easy to access in the industry from both aspects, financial, technological

and operational.

 It is too easy to exit from the business as the investment is not strategic

investment.

As many ventures are to open their business in the industry the demand and usage of the

product will grow further. The existing venture is interested to spread the technological training

to new people to establish a strong market. The benefit is for the country as a whole and for the

individuals for many reasons, like, health, cost saving in harvesting, crops production growth,

enhancing further production capacity of soil, and environmental issues.

Page | 21
  There is no rivalry that exists in the industry. In the agriculture industry the nation is to

spread and practice any new innovation with well acceptance.

 The major portion of the population is employed in the industry; the industry has always

been patronized directly by the governmental unit.

 This industry’s product is a key resource of living thus is in great concern of all.

 Any new technology used in agriculture never introduced any rivalry in the production

process rather it has been an intangible asset that helped the country to become more

complete and independent in the world.

Research is being done to evolve new techniques for advancement in the agriculture and trying

to diversify the production portfolio and volume. Even overseas innovation is being introduced

in the industry continuously. In this situation private producers of fertilizer are very important

for the nation (F. Shuvo, personal communication, July 19, 2019).

 Raw material suppliers will be accessible easily as they have to manage the wastage by

their own otherwise. The project is to facilitate them with the service that their garbage

is to be managed by some organized people in an efficient way. The cause behind the

act is good. The only thing to do is contact the suppliers and get a space to store the

garbage in a container. No financial transaction is to appear; moreover they will be

happy with such initiative that is anticipated.

 High demand in the urban area for organic crops, new materials for producing crops

and environmental concern is the key factor that states there will be low need for any

bargaining or negotiation between seller and the purchaser of the product. Urban

producers and consumer of crops are interested to see the existence of such market.

The financial benefit from low cost of production and high volume of production offsets

any pricing concern. People are waiting for a strong market for such product.

Page | 22
 There is no substitute for fertilizer but organic fertilizer has a substitute that is chemical

product. The differentiating feature of the product is such strong that it says everything

about the product. It cannot be said that chemical fertilizer is substitute of

Waste Eaters rather they have very different functions and effects that make no sense

to compare the two in single platform.

Page | 23
 Business Model

A business model canvas is constructed below:

Key Partners

Waste Picketers- They play a very vital role in our business. They collect the wastes from home
to home or from street to street. We will have a deal with them.

Municipality- It has the total control over the waste management of a specific municipal. We
will have an agreement with it so that we may collect these wastes to make fertilizer.

Residential Houses- These houses are the key source of our raw waste material. We will make
a deal with the house owners so that they may dump their wastes in a particular directed way
by us.

Page | 24
Nurseries- Our targeted customers are often likely to visit nurseries. We would promote our
products into these nurseries to reach our targeted customers.

Pathao- It has the parcel service which would make parcel delivery service comparably easy.

Key Activities

Sales- It is the most important activity. Without sales, our company wouldn’t see any profit.

Local Marketing- We would sell our product on the basis of local need. So, we need to promote
our product locally.

Waste management- We need to collect the organic and inorganic waste separately to produce
fertilizer. In order to that, we need the proper management of waste.

Key Resources

Organic Waste- We basically need organic waste to produce our expected fertilizer.

Red Wigglers- This is a special kind of insect which would make the fertilizer so effective and
different than rest of the conventional fertilizers.

Technology- As we have discussed that we would use new technology to produce our product.
This specific technology is required to make our product.

Dedicated Team- It is almost impossible to run the business successfully if the team is not
dedicated enough.

Value Proposition

Better Fertilizer- We are committed to our customer with the better fertilizer than the rest of
the competitor company.

Affordability- We wouldn’t charge high so that any customer with middle income can easily
buy our product.

Quality Ensured- Quality of the product would be ensured before packaging it.

Eco-Friendly- We collecting waste to produce fertilizer.

Page | 25
Customer Relationship

Premium Personal Assistance- We would treat our customer in a premium manner.

Channels

Online Order- A customer can place an order for our product online.

Pathao Parcel- Our products can be delivered through Pathao parcel service.

Customer Segmentation

Niche Targeted People- We have targeted a niche group of people.

Gardening as a hobby- We would target those customers who have a hobby of gardening.

Upper Middle Class and Middle Class- People having high or middle income would be targeted
by us.

Involved in Social Services- We would target those people who want to serve the society.

Revenue Streams

Fertilizer Sale- Our only way of generating revenue is to sell our fertilizer to our potential
customers as of now.

Cost Structure

Branding- To keep our business name alive, we need to keep advertising our product.

Storage- Storing our product for the future need of the customers.

Municipal fees- We would pay a fee to the municipal govt. to use these wastes to produce our
product.

Page | 26
Pricing Model:

The going rate per kg for compost is 75 Taka and above. This price is low enough to ensure

rapid growth in the market yet still provide a very healthy profit, given that we have no direct

competition (only two company named Waste Concern and Garbageman) and chemical

fertilizer is much more expensive. This is possible because we are on the front end of the

industry growth in this region.

Social Goal:

The project invites those people of the society, who would be unemployed or rarely paid for

the work, the cheapest and most neglected workers in the society. They are being treated as

key resources for the project which ensures their social acceptance and worth. They are serving

the society with their effort which ensures an economic independence to them.

Sustainability:

It is difficult for the world to keep up with the rapid waste generation that is occurring.

Composting and vermicomposting are very well known treatment process of managing organic

waste all around the world. These two methods are regarded as clean and sustainable, biological

treatment method. Hence using organic waste as a primary raw material for creating

vermicompost fertilizer is a biologically sustainable process. Also this kind of business

approach is quite rare in Bangladesh so with a certain degree of certainty we can assure that

this business will be sustainable.

Eco friendly:

The product has a very high degree of environmental impact. It is to keep the environmental

pollution away while cultivating. It keeps the quality of the soil intact. It ensures the health of

humanity safe and sound. It reduces the need of irrigation and keeps the moisturising feature

of the soil at high degree. On the other hand it is using the garbage as raw material which is not

Page | 27
properly treated in the society where the recycling is a rare thinking indeed. The wastages are

wasted, as these are not being used or recycled. At a time in several cases they are not removed

or transmitted to the bin properly that causes harm to the environment thus the society.

Ethical:

One of the most crucial issue for any business venture is to answer the question that is the

venture has ethical standards or not. Since the inception of the idea of turning waste into

something so useful itself tells everyone that the business is ethical. The business is focused on

green technology which clearly has a positive impact on the society and environment.

Page | 28
 Description of venture

Product

The product of the venture is vermi-compost fertilizer that is to be produced by processing

the garbage collected from the local restaurants and households. Fertilizer is an essential

product in cultivating. There are several products available in the market, when we

categorize those, they are (a) chemical products; which are produced with the help of

chemical components, not always healthy for the soil, environment and the crops. It

diminishes the reproduction ability and nutrient components of the soil. Sometimes it is

harmful for the trees, fruits, vegetables grains. Chemical fertilizer is harmful for other

environmental components as well, like water. For human health it is not a recommended

one. (b) Natural fertilizer; which includes, rotten perishable trees fruits, vegetables and

other items. It can be natural by-products like cow-dung or direct input of protein. The

product of the venture falls into the latter category. There are three types of compost

available; they are (i) vermin-compost, (ii) quick-compost and (iii) trico-compost.

The product is mainly for the urban customers who gardens basic vegetables, fruits, herbs

and flowers on the terrace. Other users are private nurseries, government projects and

farmers surrounding the Dhaka city. The main feature of the product is, it is a natural

fertilizer, which completely enhances the acceptability from environmental issues.

We believe that this venture will be successful cause this venture is human centric. This venture

works for the betterment of the society, it has sustainable practises, eradicates different

environmental problems in society and most importantly the world is focusing on green

technology and this venture is all about that. Till now we haven’t completed any task but we

are planning to start our operations soon. In terms of patents and trademark status, our product

isn’t patented. The business will first start its operation from our own house. We will start our

Page | 29
pilot production using the roof top. We are doing this in our own house because we don’t have

any options right now but to start from our own house. In order to be successful in a business

we believe we have the right thing and that is a team. Our team has a good understanding and

coordination which will allow us to grow in the near future.

Product usage:

It can be used every 10 days on plants with no environmental pollution and side effects. It is

recommended for plants in the shocking period especially when the trees are transplanted

from one place to another.

Basically the product is used in the cultivating process which enhances the ability of the soil

to support the growth of the plants and the crops. At a time it ensures the size and quality of

the crops. The fertilizer is to keep the reproduction capability of the soil intact even it enhances

the said quality of the same. The product is to keep the volume and quality of the

food supplied. At a time it ensures the soil to be kept in good condition for further

production. It ensures the nutritious value of the food and ensures the absence of the

environmental pollution in such cultivating process.

It enhances the moisturising capability of the soil. It limits the diseases and insects attack for

the plants. It increases the sprouting ability of the soil. There will be more branches and

grains of the crops while using the product. The texture of the soil upgrades with the usage

of the product. It can increase the production even 10 times that is suggested by the

national researchers. It boosts the organic components of the soil where these components

in the soil of Bangladeshi cultivating area fall by 80% recently. And the usage of such

product is the most economic one.

Page | 30
Product specifications:

Features Specifications

01 Brand name Waste Eaters

02 Product category Vermi-compost
03 Scientific specifications Composition:
1. PH - 7.48 ± 0.03
2. Organic Carbon% - 0.008 ± 0.001
3. Nitrogen% - 0.01 ± 0.005
4. Available Phosphorus – 1.69 ± 0.05
5. Potassium (ppm) – 25 ± 2

Micro nutrients:

Qty (ppm)
1. Sodium 8±1
2. Calcium 3±1
3. Copper 0.01 ± 0.001
4. Ferrous 0.06 ± 0.001
5. Magnesium 158.44 ± 23.42
6. Manganese 0.58 ± 0.04
7. Zinc 0.02 ± 0.001
04 Benefits of the product The product contains:
Hormones- Auxins, Cytokinin, Amino acids and Microbes
Major nutrients- Nitrogen, Phosphorous, Potash (NPK)
Micro nutrients- Sodium, Calcium, Copper, Ferrous,
Magnesium, Manganese and Zinc
Nitrogen fixing Bacteria- AZATOBACTER,
RHIZOBIUM and
PHOSPHATE SOLUBILIZING BACTERIA (PSB)
• Slows down bacterial diseases, don’t allow bacterial
infection
• Increases the photosynthesis in plants and increases yield
• Increases the resistance of the plants

05 Solidity Solid

06 Weight 25 kg per package

Page | 31
Office equipment and personnel:

In future, our office will be segmented into four departments namely i) Operations department

ii) Marketing department iii) Finance and accounts department iv) Research and development

department.

Currently there is no office space for us right now but in the near future when we’ll have, the

equipment that we will need includes computer, printer, internet routers, projectors, air

conditioner, shelves, chairs, tables, etc.

For future operational years when we’ll need people for the departments.

Marketing department:

Two marketing officers – Making sure all campaigns and promotional activities are organized

accordingly. They report directly to the CMO.

Operations department:

Two operations executive – They will make sure the proper functioning of the operations

without lag time and will report directly to the COO.

Finance and accounts department:

One officer is required who will manage book keeping and keep track of all the cash flows. He

will report to CFO for further decision making.

Research and development department:

Here one research enthusiast will be required who will try to make improvements on the

product for better quality.

Page | 32
 Production plan/ Service delivery model

Raw materials and suppliers:

Very few elements are required for the production of vermi-compost. These are (a) perishable

leftovers of the vegetables, and other food items, (b) vermin/worm, (c) cow dung, and (d) water.

These are all local elements, easily accessible with low costs.

a. Garbage: Material food-leftover, is a day to day part of the urban people. In recent

years most of the area from Dhaka city has been managed to treat these things in not an

environment-friendly manner. All the left-over cannot be used in the production for the

venture. The needed element must be segregated from the entire garbage. It is not

feasible to perform the process by collecting the garbage from municipal-authority

provided garbage container. The process will be easy if the needed part can be

segregated initially before throwing out to the common bin. Families that produce such

garbage are one of the prime source of such material. Also another most efficient source

is local tea stall that generates such garbage. The project is situated in the Uttara area.

The surrounding areas are good place for accessing tea stall. The frequency is greater

in the commercial area which ensures the greater volume of garbage as well. At a time,

the size and structure of such tea stalls are in favour of such material collection. Thus

these are appropriate source of the prime material of production, the wastage.

b. Vermi/ Worm: Vermi is used in several agro purposes in the country. The harvesting

of crops needs vermi, protein factories like chicken farming and such other farming

needs vermin too. Fish production process has usage of the vermi. Vermi is very

common and easily available in Bangladesh, and it costs very low. The reproduction of

vermi is an easy process and do not need any complex procedure. The production

process of the project itself will grow the volume of vermin. There are several types of

vermin available in the country, the type of vermin being used in the project is Red

Page | 33
 Wiggler which will cost around 2500 Taka to 3000 Taka for 1000 worms. 1000 worms

will be enough to start our initial operations and we will buy these worms from the

waste management company GARBAGEMAN.

c. Cow dung: A signatory element, a natural by product from cattle farming in

Bangladesh. Though it is the biggest natural blessing to the nation, it costs the users in

the urban area. Several nurseries sells cow-dung. The source of this material for the

project is the farms surrounding the project site and costs actually minimal.

d. Water: The water supplier for the dwellers in the city is WASA, which is of minimum

cost. The project does not need any dedicated source, the regular supply is enough for

the production.

The materials are not only cheap and easily accessible, rather the production process

ensures of proper usage of such resources and guarantee of increasing the natural wealth of

the nation. The materials are not being consumed rather growing in the process of

producing the compost. The quality and required components both are guaranteed for the

environmental elements and crop harvesting in the procedure that adds a very different and

important dimension to the project idea. At the same time cleanliness of the city atmosphere

is being promoted through the project.

Technology used in material procurement:

Materials for the production are listed as below:

Particulars Composition
01 Restaurant and household wastage: Foods and vegetables 8 unit
02 Vermin 0.2 unit
03 Cow-dung 1 unit
04 Water As needed

Page | 34
On source segregation of waste is necessary for smooth production. For on source segregation

of waste we need two buckets. One is yellow and another is green. Yellow is for dry or

inorganic waste and the green is for organic waste similar to the photo shown below.

Every family in the building is provided with two such buckets, yellow and green. Also the tea

stalls are provided with yellow and green buckets for initial waste segregation. Now in order

to collect the waste we need a worker who will collect the waste from nearby tea stalls using a

cart and transport to the production unit. Generally City Corporation doesn’t bother about such

waste collection as long as they get the money for waste collection. Every family pays 150

Taka monthly to City Corporation for waste collection and we have to pay that amount on

behalf of these families and this is our cost of raw material garbage.

Page | 35
This is the procedure to collect raw materials at the initial stage of the project. The most

important material, the vermin, is to be reproduced in the compost producing process itself.

There are no significant machinery needed that consumes fuel to procure the raw material, only

few types of equipment are needed that are listed as below:

Particulars
01 Waste bin
02 A cart for carrying waste bins
03 Shovel
04 Shredder
05 Uniform

Technology used in the production:

In the second phase after material procurement, the production of the compost starts.

Page | 36
Upon arrival at the production unit (which is our rooftop), another separation of waste is done

according to their type. Inorganic waste that can be recycled can be sold in the recycling market

or we can also go for some creative recycling in the future. Organic/food waste will be placed

into one of organic in vessel digesters. In the blue drum (as shown in the picture) in vessel

composting is done. Vermicomposting takes place in the wooden box (as shown in the picture).

In the blue drum we keep the organic waste for 7 days, and in the wooden box we keep it for

15 days. The organic waste is kept on the blue drum along with dried leaves. These dried leaves

are collected from roadsides. Each blue coloured drum can carry 100 kg of wastes. It takes 3

to 4 days for filling up the first blue drum out of the two completely. On 4th day the second

blue drum starts filling up. On an average every family generates 1 to 1.5 kg of organic waste

daily. There are 12 families in our building thus daily generating 18 kg of organic waste

roughly. Also there are organic waste from local tea stalls. Thus it takes 3 to 4 days for filling

Page | 37
up each blue drum of 100 kg. Once these blue drums are completely filled they are kept for

decomposing for 7 days. So 10 to 11 days for the first blue drum to be emptied and 13 to 14

days for the second blue drum to be emptied. The decomposed materials from the blue drum is

then transferred to the wooden box (vermi-bed designed with proper drainage system and

controlled environment) along with vermin for another 15 days for the production of the

compost. The vermin eats the wastage and the discharge by the vermin is the product, the

compost. After keeping for 15 days, maturing needs to be done along with screening. The

discharge is dark in colour and wet. The discharge is separated from the vermin with the help

of a net. Maturing basically means drying the discharge. Once the colour of the extract turns

dark brown, then the extract is ready for packaging and sale.

Page | 38
Figure: A graphical representation of on source segregation of waste to vermi-compost

Page | 39
 Collection of
Prepare the
the materials:
vermi bed
Restaurant
again for
wastages,
further
Vermi, Cow
production
dung, Water

Transmit the
Collect the
garbage on the
extracts from
top to segregate
the vermi bed
the required
meanwhile
elements

Chop those,
The process prepare the
takes 22 days to vermi bed for
complete pouring the
materials into it
Mix the
material on
proper
proprotion and
pour it to the
vermi bed

Figure: Production process

Equipment:

The equipment needed in the procedure are listed as below:

1. Two buckets (yellow and green) for each 12 families and 5 tea stalls = 34 buckets X

200 Taka is equal to 6,800 Taka.

2. Two blue coloured drum for in vessel composting along with wooden pivot structure

costs around 8,000 Taka.

3. Wooden Vermi-bed (3.5’ x 7’ x 2.5’) along with labor cost is 9,000 Taka.

4. Each net for screening costs 2000 Taka.

Page | 40
 5. 5 shovels costs 1,000 Taka. (200 Taka each)

6. Cost of 1,000 Red Wiggler is 3,000 Taka

7. Temperature meter, moisture meter, Terpal and other equipments that are necessary

for maintaining wooden vermi-bed is 4,000 Taka.

8. Monthly salary for waste collector is 5,000 Taka.

9. Each kg of polythene bags costs 200 Taka. In each kg of polythene bags contains 20

to 25 bags that are used to collect waste.

10. Monthly cost of collecting waste by paying the bill for City Corporation on behalf of

each families (12 families, 150 Taka each) = 1,800 Taka

Equipment 1 to 7 are fixed costs and are one time investment only, on the other hand 8 to 10

are variable costs and are needed mostly on monthly basis except number 9.

Total initial one time investment (equipment 1 to 7) = 33,800 Taka

This numerical figure is basically for an initial pilot setup on a rooftop. Eventually we will

need an operational place to scale growth.

Considering all the facts shared, the cost of production of the vermi-compost per kg is 18

Taka. We are charging almost similar to our competitor which is 75 Taka.

Technology for packaging:

Currently the packaging needs a simple element, plastic bottle. But it is recommended that the

packing needs to be designed in a new way. The packaging can be plastic sachet or bottle that

are currently in use that contains brand name, brand colour, logo, product specification, using

guide, certification from standard testing authority, clearance declaration form legal authority,

and manufacturing-packaging-expiration date. This package production can be done with sub

contract to the package producing units. Another way to package is using jute produced bags

Page | 41
which are economic and environment friendly at a time. This packaging will increase the

marketability of the product. The product then will be easily affordable and effective to buy as

it can be offered in several different volumes. The package will be easy to carry for distribution

and sale and safe for moving.

Technology for storing:

There are no scientific procedure needed that involves electronic equipment. Usually the

product has no specific expiry, only by storing for long period of time the moisture level may

vary. The only necessity is storing it in a cool space to maintain a certain level of temperature

that ensures the moisturising content intact for the product.

Technology for promotion, distribution:

The medium for promotion is to be the social and print media that claims no technological

support specific for the project, except a computer system with internet connection. It is not

essential that dedicated facilities have to be there for the purpose, the existing facility

available will work. For distribution vehicles are to be rented or Pathao parcel can be used.

Page | 42
 Operational Plan

At the heart of this venture, it allows the community to be a part of reducing the landfills and

lower down the hazardous impact of it. In addition, the venture promotes the usage of organic

fertilizer rather than chemical fertilizer. It will empower the local community by creating new

employments and make people more aware of proper waste disposal methods. The daily

operations of this venture is basically observing each steps of production, making it more

efficient and precise so that it can readily respond to the market demand. Since it is a

manufacturing venture, so the manufacturing unit must be checked and monitored periodically

for minor mistakes in order to provide the best quality product.

Apart from that, our objective is to be better than our competitors in terms of production and

respond to our customers demand as fast as possible. For that to take place it will make us more

cost effective and increase our operational efficiency.

Customer Service: We will make the process of contacting us very convenient by providing

customers an online platform. We will build a website where people can ask for products and

also maintain dedicated blogs on the website so that we can receive instant feedback and start

working on it. Each customers will feel that their opinion is heard and they will feel valued

once their feedback is evaluated. We also have future plan on building an application based

platform along with the website.

Quality Control: Perhaps the most important factor for a manufacturing firm is quality control.

We will use our operations manager to continuously monitor our operations so that we can

provide our customers with a superior quality product to capture market share and become the

market leader.

Product and Service Improvement: The environment and the world is changing fast. With

the advent of technology and modern scientific knowledge, it is of utmost important obligation

Page | 43
for a sustainable environment friendly company to continuously update and improve our

product and services. We will encourage customers to provide feedback and based on that we

will understand the market demand and along with our research we will improve and align our

operations and service to meet the customer needs.

Legal environment: In order to run the business smoothly these are the licenses that are

required.

 Trade license: For every business organization or firm, to operate in this country

requires trade license. It is mandatory to have trade license for businesses according to

the Bangladesh Government.

 Taxpayer’s Identification Number (TIN Certificate): For every individual and

company who falls under a certain income bracket are mandated to give tax as long as

they fall under the tax bracket. Renewal is not necessary for this certificate unlike the

other ones.

 VAT or Value Added Tax Registration Certificate: VAT certificate is required for

all the businesses that are supposed to pay VAT according to the law. This certificate

is issued by the National Board of Revenues (NBR), a part of the Finance Ministry of

Bangladesh.

 Fire License: This license is an obligatory permit that is required by all the factories

to setup in Bangladesh according to the Fire Prevention and Fire Fighting Act, 2003.

Given the safety factor of the workers, our surroundings and long term assets it is of

utmost important to abide by the law and obtain the fire license.

Flow of orders for goods and/or services:

The customer can order the product initially through phone or Facebook page and we will send

the product to the customer’s house through Pathao parcel or through our own delivery method.

Page | 44
At the later stage of the business we would like to take orders through website and apps and

use Pathao parcel for delivery purpose.

Technology utilization:

1. A basic internet connection for placing the order.

2. A computer/ smartphone/ Notebook/ Netbook.

3. A smartphone or mobile phone for order confirmation.

Page | 45
 Market plan (7 P’s)

Product

The product that we are offering is a far better in terms of quality, affordability and most

importantly we are converting waste into resources. Vermi-compost is an organic product

which has a clear advantage over chemical fertilizers in terms of quality and considering the

environmental and ethical factors. The product is basically a recycled product from waste that

to some extent eliminates the waste disposal issue too. Landfills are increasing and the product

has a positive impact on reducing pressure on landfill by transforming waste into an organic

fertilizer of better quality. Also our product creates a perception that people are more engaged

in saving the waste from going to the landfill and saving the environment.

Pricing

The going rate per kg for compost is 75 Taka and above. This price is low enough to ensure

rapid growth in the market yet still provide a very healthy profit, given that we have no direct

competition (only two company named Waste Concern and Garbageman) and chemical

fertilizer is much more expensive. This is possible because we are on the front end of the

industry growth in this region.

Promotion

For our promotional strategy it will be done on two phases. The first phase will concentrate on

six months to a year time period of our opening and the second phase of promotional strategy

is for long term. This first phase will done because we want to enter the market swiftly which

will allow us sustainable revenue generation. The second phase will allow us to run after our

vision, our strategic growth across Dhaka and also inside the country.

1st phase promotional activities:

Page | 46
Publicity: We will try to use newspapers as one of our sources of promotional activities. News

articles about entrepreneurs in the newspapers will definitely catch peoples’ attention specially

our target market generation that still reads newspapers rather than online sources.

Personal selling: Since as a student of North South University we would like to set up

promotional booths under Social Service Clubs of this university. Letting the students know

what we are offering and making people more aware of the innovative product that we have

brought in to the market.

Social media pages: We will create a Facebook page named “Waste Eaters” where we will

effectively communicate with our stakeholders and convey the message of our product and the

value proposition.

2nd phase promotional activities:

Web banner ads: We will use banner ads in different websites by paying a commission to the

publishers. Now a days people are more into online world so banner ads is an effective way of

promotions.

News media: As our publicity will start growing we will try to seek more footage through

news media.

Interstitial ads: These are the types of ad that is shown between contents. Our advertisement

will be done in Facebook and YouTube videos where people will come to know about us.

Geolocation: This technology allows to target your audience more accurately and this what

we will use in the future to locate our audiences precisely.

Social media pages: In this phase we will try to reach more customers through boosting in

Facebook where we’ll already have the page.

Page | 47
Place

The main platform where we will meet our customers is primarily online and also they can visit

our production facility anytime. But they can get the entire product through online and they

can use online payment or may use different mobile banking services like Bkash.

Packaging

Currently the packaging needs a simple element, plastic bottle. But it is recommended that the

packing needs to be designed in a new way. The packaging can be plastic sachet or bottle that

are currently in use that contains brand name, brand colour, logo, product specification, using

guide, certification from standard testing authority, clearance declaration form legal authority,

and manufacturing-packaging-expiration date. This package production can be done with sub

contract to the package producing units. Another way to package is using jute produced bags

which are economic and environment friendly at a time. This packaging will increase the

marketability of the product. The product then will be easily affordable and effective to buy as

it can be offered in several different volumes. The package will be easy to carry for distribution

and sale and safe for moving.

Positioning

Our product will be positioned as a better alternative for any organic and chemical fertilizer

with a sense of acknowledgement that people are actively participating in saving the

environment by allowing us to convert waste into a valuable resource.

People

We are more human centric as we engage our vendors and stakeholders to educate people to

separate waste on source. We engage people in our business and creates an employment

opportunity and provides better workplace in a controlled environment. We also inspire people

to use organic fertilizer for the soil which is more eco-friendly and sustainable in the long run.

Page | 48
 Organizational Plan

Form of ownership

At the very early stage of business we plan to form partnership business named Waste Eaters.

With the passage of time when the business will reach its maturity we plan to change the form

of partnerships to corporations. We certainly believe that Waste Eaters has the potential to

become the market leader of a huge untapped market of waste management. Primarily we plan

to start our operations from Uttara even for that to start we require a decent amount of funding.

This funding can be managed by forming a partnership business which we plan to do so. Finally

when we reach maturity phase of the business we intend to form corporations.

Identification of partners or principal shareholders

The partnership will form between Mehnaz Ahmed Khan, Mohammed Sazzad Khan, Shohanur

Rahman Shohan and Tahsin Islam.

Terms of agreement:

 Name: The partnership firm name is “Waste Eaters”

 Term: The partnership will begin on October 1st, 2019 and will continue until 5 years.

 Place of business: The prime location of the business will be at House – 102, Road –

118, Sector – 42, Uttara, Dhaka – 1230.

 Capital contributions: All partners will contribute equally (20,000 Taka each) and will

hold equal company shares.

 Withdrawal of capital: Without the express consent of the other partners, no partners

are allowed to withdraw any portion of his or her capital.

 Remuneration: The partners can work for their firm and thus receive remuneration.

 Dissolution: Except as otherwise provided in this agreement, the partnership may be

dissolved only with the unanimous consent of all partners.

Page | 49
  Distribution of property on Dissolution of Partnership: In the event of the dissolution

of the partnership, each partner will share equally in any meaning assets or liabilities

of the partnership.

Authority of principals

 Capital Accounts: An individual capital account will be created and maintained for

the partnership business in the firm’s name.

 Financial Decisions: Decision regarding the distribution of profits, allocation of

losses, and the requirement for additional capital contributions as well as all other

financial matters will be decided by a unanimous vote of the partners.

 Admitting a new partner: A new partner may only be admitted to the partnership with

a unanimous vote of the existing partners.

 Voluntary withdrawal of a partner: Any partner will have the right to voluntarily

withdraw from the partnership at any time. Written notice of intention to withdraw must

be served upon the remaining partners at least 3 months prior to the withdrawal of the

partnership.

 Involuntary withdrawal of a partner: Events resulting in the involuntary withdrawal of

a partner from the partnership will include but not limited to: death of a partner; Partner

mental incapacity; Partner disability preventing reasonable participation in the

partnership; Partner incompetence; breach of fiduciary duties by a partner; criminal

conviction of a partner; Expulsion of a Partner; Operation of law against a partner; or

any act or omission of a partner that can reasonably be expected to bring the business

or societal reputation of the Partnership into disrepute.

 Voting: Any vote required by the Partnership will be assessed where each Partner

receives one vote carrying equal weight.

Page | 50
Management team background

Mehnaz Ahmed Khan here will perform the role of a Chief Financial Officer. Currently he is

pursuing his undergrad studies at North South University majoring in Finance. He has prior

experience of research and he is quite skilled in spreadsheet applications. He worked as a

research assistant with faculty members which will definitely help tremendously in doing

market research. Also he worked in a team of artist management during a classical music fest

organized by Bengal during 2017 which can help him to work as a team in this venture and

also balance the team dynamics. His subject knowledge can help him to make quantitative and

analytical decisions. We need an expert for book keeping purpose and forecasting cash flows

to analyse business performance and his abilities fits the best.

Tahisn Islam will perform the role of Chief Marketing Officer in this venture. She is also

currently pursuing her BBA at North South University majoring in Marketing. She has prior

experience of being a sub executive of the prestigious club NSU YES! where she learned how

to work as a team member and she was engaged in promotional and organizing activities of

different club events. She will be handling our promotional activities of this venture.

Furthermore, she worked as a volunteer in JAAGO foundation which gave her an exposure

towards social service activities that will allow her to understand the market. Also she has the

subject knowledge regarding the marketing field. We believe she is the appropriate individual

in this business who can use proper channel to capture our targeted customer and advertise the

product in such way where it will meet its value proposition.

Shohanur Rahman Shohan is currently pursuing BBA in human resource management at North

South University. He is an ex cadet from Mirzapur Cadet College. Because of his disciplined

lifestyle we chose him to look after the operations. He will be performing the role of Chief

Operational Officer since he has prior experience of doing business before. Moreover, he has

Page | 51
prior experience of logistics and operations since he worked as a volunteer during 25 years

celebration of North South University. Furthermore, his subject knowledge of human resource

management will allow him to better deal with employees than any one of us.

Mohammad Sazzad Khan is also a student of North South University, majoring in Finance and

Marketing. He will be performing the role of CEO because of his diverse experience. He has

prior experience of participating in different business competitions and club activities.

Currently he is the head of publication in ICMA student chapter. During his college years he

was an important part of the organizing team of international summit. He was also a member

of the North South University Debating Club. It is important to have a front person with a great

communication skill which will help to convince stakeholders to understand the business

venture.

Roles and responsibilities of members organization

Mohammad Sazzad Khan (Chief Executive Officer) will be responsible for:

 Growing excellent business systems and plans guaranteeing their arrangement with

present moment and strategic goals.

 Driving and persuading dependents to propel worker commitment build up a high

performing administrative group.

 Regulating all tasks and business exercises to guarantee they produce the optimum

results and are steady with the general technique and mission.

 Only the CEO will have check signing authority and control.

Mehnaz Ahmed Khan (Chief Financial Officer) will be responsible for:

 Help with playing out all errands important to accomplish the association's central

goal and help execute staff progression and development plans.

Page | 52
  Train the Fund Unit and other staff on bringing issues to light and learning of

budgetary administration matters.

 Work with the CEO and COO on the vital vision including encouraging and

developing partner connections on city, state, and national levels, just as aiding the

advancement and arrangement of agreements.

 Participate in growing new business, explicitly: help the COO in distinguishing new

subsidizing chances, the drafting of planned automatic spending plans, and deciding

cost adequacy of forthcoming administration conveyance.

 Survey the advantages of every imminent contract and exhort the Official Group on

automatic structure and execution matters.

 Guarantee satisfactory controls are introduced and that substantiating documentation

is endorsed and accessible with the end goal that all buys may pass autonomous and

legislative reviews.

 Furnish COO with a working spending plan.

Shohanur Rahman Shohan (Chief Operational Officer) will be responsible for:

 Work together with the supervisory group to create and actualize plans for the

operational framework of frameworks, procedures, and faculty intended to suit the

quick development goals of our association.

 Speak to the firm with customers, speculators, and colleagues.

 Work together with the supervisory group to create and execute plans for the

operational framework of frameworks, procedures, and staff intended to oblige the

quick development targets of our association.

 Guarantee execution of the considerable number of tasks of the business firm inside

the financial limit.

Page | 53
Tahsin Islam (Chief Marketing Officer) will be responsible for:

 Implementing and overseeing marketing budget

 Preparing the marketing plan.

 Create content for all media channels.

 Regularly implement social media and offline marketing.

 Overseeing the development of promotions and offers.

Page | 54
 Assessment of Risk

Weakness of Business

i. Presence of Competitors: GarbageMan and Waste Concern is playing a leading role in this

business. It has already captured a significant amount of share in the market. It will be hard for

‘Waste-Eaters’ to adapt with such environment. Also this concept of turning waste into a

resource is a new idea for people. People needs to understand first that we are not just any

company selling organic fertilizers but we have the potential to bless our future generation with

a cleaner environment and society.

ii. Lack of Experience: Four of ‘Waste-Eaters’ entrepreneurs are currently enrolled in an under

grad school. None of them have any taste or experience about practical business world.

Experience is a vital element in a start up from procurement of raw materials to sourcing and

gathering funds in every step experience matters. Though we are still students but we believe

that we have the perseverance and will power to acquire experience in due time and make the

business a success.

iii. Managing Supplies: It is a matter of fact that ‘Waste-Eaters’ will be purchasing its key

supply as known as ‘Red Wiggler’ from the greatest competitor GarbageMan.

iv. Business and financial risk: The project goes with the nature of climate and geographic style

of the country and has no such business risk involved. The project will be financed completely

by investors, and has a very little financial risk involved.

Challenges of Business

People of Bangladesh never had the practice of dumping the waste in a specific way which is

required for our business to collect the raw materials. It will be hard for them to get used to this

particular method of dumping their wastages. As a new entrant there would be trust issue about

Page | 55
our product. Further also there can be advent of any new technology that can completely

eradicate the entire industry but we hope that it will not happen in any near future.

Contingency Plan

There is a huge edge for us if the business fails to make profit because we make our products

from wastage which are recyclable. So, there is market demand for these raw materials. We

would sell these raw materials to the potential recycler buyer.

Page | 56
 Financial Plan

Pro-Forma Income Statement

Year 2020 2021 2022 2023 2024

Sales Revenue BDT 900,000.00 BDT 1,008,000.00 BDT 1,260,000.00 BDT 1,575,000.00 BDT 1,968,750.00
COGS BDT 155,520.00 BDT 174,182.40 BDT 195,084.29 BDT 218,494.40 BDT 244,713.73
Maintainence cost BDT 24,000.00 BDT 26,880.00 BDT 30,105.60 BDT 33,718.27 BDT 37,764.46
Total Variable Cost BDT 179,520.00 BDT 201,062.40 BDT 225,189.89 BDT 252,212.67 BDT 282,478.20
Gross profit BDT 720,480.00 BDT 806,937.60 BDT 1,034,810.11 BDT 1,322,787.33 BDT 1,686,271.80
Rent BDT 120,000.00 BDT 132,000.00 BDT 145,200.00 BDT 159,720.00 BDT 175,692.00
Employee salary BDT 216,000.00 BDT 237,600.00 BDT 261,360.00 BDT 287,496.00 BDT 316,245.60
Utility BDT 24,000.00 BDT 24,000.00 BDT 24,000.00 BDT 24,000.00 BDT 24,000.00
Account Opening BDT 1,000.00
Trademark & Logo BDT 10,000.00
Registration BDT 40,000.00
License BDT 5,000.00 BDT 5,000.00 BDT 5,000.00 BDT 5,000.00 BDT 5,000.00
Advertisement BDT 72,000.00 BDT 79,200.00 BDT 87,120.00 BDT 95,832.00 BDT 105,415.20
Total Fixed Expense BDT 488,000.00 BDT 477,800.00 BDT 522,680.00 BDT 572,048.00 BDT 626,352.80
Depreciation BDT 40,750.00 BDT 40,750.00 BDT 40,750.00 BDT 40,750.00 BDT 40,750.00
EBT BDT 191,730.00 BDT 288,387.60 BDT 471,380.11 BDT 709,989.33 BDT 1,019,169.00
Tax BDT 47,932.50 BDT 72,096.90 BDT 117,845.03 BDT 177,497.33 BDT 254,792.25
Net Income BDT 143,797.50 BDT 216,290.70 BDT 353,535.08 BDT 532,491.99 BDT 764,376.75

We are expecting to sell 1000 pieces of our product every month on an average. Each of the

package would cost BDT 75.00 which contains 75kg of fertilizer. Our sales revenue will follow

12% growth rate for the first two years and 25% growth rate for the last three years. For the

items such as account opening, trademark & logo and registration are only for the first year.

We have considered tax to be the 25%. We have followed the straight-line method to calculate

depreciation where assets having the salvage value of 50% of its historical purchasing price.

We assumed expenses to increase by 10% each year.

It is quite evident in the statement that the net income is increasing every year indicating our

company would do great in the long-run.

Page | 57
Pro-Forma Balance Sheet:
Class 2020 2021 2022 2023 2024
ASSETS
Fixed Assets
Property Plant & Equipment
Infrastruture and setup 350000 392000 439040 491724.8 550731.776
Drums and devices 17500 19600 21952 24586.24 27536.5888
Pick up van 20000 22400 25088 28098.56 31470.3872
Uniform and safety gears 10000 11200 12544 14049.28 15735.1936
Tools 10000 11200 12544 14049.28 15735.1936
0 0 0 0 0
Website design & App Development 250000 280000 313600 351232 393379.84
0 0 0 0 0
Capital Work in Progress 100000 112000 125440 140492.8 157351.936
Trade License 5000 5600 6272 7024.64 7867.5968

Total Fixed Asset 762500 854000 956480 1071257.6 1199808.512

Current Asset
Cash 720000 806400 903168 1011548.16 1132933.939
Accounts Receivable 180000 201600 225792 252887.04 283233.4848
Advance for Land Lease(5x) 50000
Total Current Assets 950000 1008000 1128960 1264435.2 1416167.424

Total Assets 1712500 1862000 2085440 2335692.8 2615975.936

EQUITY

Retained Earnings 0 0 0 0 0
Sazzad, Mehnaz, Tahsin & Shohan (4x) 80000 80000 80000 80000 80000
Investor 1 400000 400000 400000 400000 400000
Investor 2 400000 400000 400000 400000 400000
Investor 3 400000 400000 400000 400000 400000
Investor 4 400000 400000 400000 400000 400000
Loss as a starup 588000 504000 420000 336000 336000
TOTAL EQUITY 1092000 1176000 1260000 1344000 1344000

Liability
Non- Current Liabilities
Long-Term Loan 0 0 57120 131174.4 308195.328
Current Liabilities
Accounts Payables 620500 686000 768320 860518.4 963780.608

TOTAL Liabilities 620500 686000 825440 991692.8 1271975.936

TOTAL EQUITY & LIABILITIES 1712500 1862000 2085440 2335692.8 2615975.936

Page | 58
We assumed our cash would be the 80% of the sales revenue and accounts receivable would

be 20% of the sales revenue. We wouldn’t take any long-term loan for the first two years. We

have also considered a loss on start-up on equity section which is the 35% of the total equity.

We are not sure about the retained earning section so we have put zero in the equity section.

Every year total assets are increasing indicating the business is expanding.

Pro-Forma Cash flow Statement

2020 2021 2022 2023 2024

Net Income 143797.50 216290.70 353535.08 532491.99 764376.75

Add
Depreciation 40750.00 40750.00 40750.00 40750.00 40750.00
Less
Accounts Receivable -153000.00 -18360.00 -20563.20 -23030.78 -25794.48
Add
Accounts Payables 485500.00 49300.00 64176.00 71877.12 80502.37

Cash from operation 517047.50 287980.70 437897.88 622088.33 859834.65

Capital Expenditure -762500.00 -91500.00 -102480.00 -114777.60 -128550.91

Cash for investment -762500.00 -91500.00 -102480.00 -114777.60 -128550.91

Net Borrowings 0.00 0.00 57120.00 74054.40 177020.93

Cash from financing 0.00 0.00 57120.00 74054.40 177020.93

Net CashFlow -245452.50 196480.70 392537.88 581365.13 908304.67

Here, we have followed the indirect method of calculating cash flow statement. In the first year,

we can see the negative cash flow but in following years our company has generated positive

cash flows.

Page | 59
Year 2020 2021 2022 2023 2024 2025
OCF BDT 184,547.50 BDT 257,040.70 BDT 394,285.08 BDT 573,241.99 BDT 805,126.75
Change in NWC BDT - BDT - BDT - BDT - BDT - BDT -
Net Capital Spending BDT (1,460,500.00) BDT 152,812.50
CFFA $ (1,460,500.00) BDT 184,547.50 BDT 257,040.70 BDT 394,285.08 BDT 573,241.99 BDT 957,939.25

Net Present Value (NPV)

Numbers Year Cash flow Present value of

Cash flow
0 2020 BDT (1,460,500.00) BDT (1,460,500.00)
1 2021 BDT 184,547.50 BDT 164,774.55
2 2022 BDT 257,040.70 BDT 204,911.27
3 2023 BDT 394,285.08 BDT 280,644.33
4 2024 BDT 573,241.99 BDT 364,305.65
5 2025 BDT 957,939.25 BDT 543,560.46
Discount rate 12% NPV BDT 97,696.27

Amazingly, our company will have a positive NPV after five years of successful operation.

Having a positive NPV would attract potential investors to invest in our company therefore we

can grow more.

Break even analysis

In order to calculate the breakeven we will consider the profit that we will make over each

product. Cost of each good is BDT 18. Selling price is BDT 75. Hence a profit of 57 for each

product. So in order to reach the breakeven we need to sell (16,00,000/57) = 28,071 units

approx. Each year according to our estimates we are planning to sell 12,000 units and within 2

and a half year we will reach breakeven.

Growth Analysis

As we can observe in our pro forma income statement that we have considered only 12% of

growth for the year 2020 and 2021 (first 2 years). Then we expected our growth rate to be

25% for the next 3 years onwards (2022, 2023, and 2024) assuming the fact that the market

Page | 60
will be more matured and the demand for our sustainable product will go up because mass

consciousness.

Sources and application of funds

We will be starting with initial equity of 16,00,000 BDT. This initial equity will be used for

operational expenses for project that we will be conducting on a separate operational platform.

A significant portion of this money will be spent on infrastructural development of the

operational facility (as per the pro forma balance sheet). This includes mainly the development

of the vermi bed for composting purpose along with controlled drainage system and

temperature.

Investment deal

We are asking for BDT 16,00,000 from investors to invest in this venture and in return, the

investor will be able to enjoy the following benefits:

 The investor will be allowed to enjoy 30% share on business equity. If there are

multiple investors still they’ll have to share this 30% equity among themselves based

on their investment amount.

 The investor can liquidate his/her entire equity of the company after 5 years in

exchange of giving up their rights.

 The maximum debt that the firm wishes to bear is 40% of the entire enterprise value.

Page | 61
 References

Enayetullah, I., Shinha, A.H.M. (2005).Urban solid waste management scenario of

Bangladesh, 5-6.

Enayetullah, (1994); 'A Study of Solid Waste Management for Environmental Improvement

of Dhaka City’, Master thesis Department of URP, Bangladesh University of

Engineering and Technology; Dhaka.

Zahur, M. (2007).Solid waste management of Dhaka city: Public and private community

partnership, 95.

Page | 62