BUS-201

Introduction to Business Studies

Section - 8

Submitted to

Ms. Afnan Ashfaque

Lecturer, School of Business and Entrepreneurship
Independent University, Bangladesh

Group - Amigos
Submitted by

Name I.D Semester- Year

Abrar Ahmed 1720754 12 Semester – 4th Year
th

Mirza Sadman Sakib 2030378 3rd Semester – 1st Year

Hrithik Sharker 2030369 3rd Semester - 1st Year
Shahedur Rahman Rishon 2010366 2nd Semester - 1st Year
Azmain Ahmed Nadeed 2030374 3rd Semester - 1st Year

Date of submission: 25/04/2021

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Letter of Transmittal

April 20th, 2021

To

Afnan Ashfaque

Lecturer

Independent University of Bangladesh

Dear Ma’am,

With due respect me, we have reported on “Fabrics & Scissors” under the course:
Introduction to Business.

Though we are still learning, this business plan has enabled us to gain insight into
the necessity of tailor-made clothes in our day-to-day lives. We tried our level best
in preparing this business plan. We fervently hope that you will find our business
plan worth reading. We hope you will appreciate our hard work and excuse the
minor issues. Without your in-class presentation and of course suggestions, this
business plan would have been an incomplete one.

Thank you

Yours’ sincerely,

Students

School of Business and Entrepreneurship

Independent University of Bangladesh

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Table of Contents
Section - 1................................................................................................................................................5
Executive Summary.....................................................................................................................................5
Section - 2................................................................................................................................................6
Company Background..................................................................................................................................6
Mission Statement......................................................................................................................................6
Vision Statement.........................................................................................................................................6
SWOT Analysis.........................................................................................................................................6
Strengths.....................................................................................................................................................6
Weakness....................................................................................................................................................6
Opportunities..............................................................................................................................................7
Threats........................................................................................................................................................7
Industry Analysis......................................................................................................................................8
PESTLE Analysis...........................................................................................................................................8
Section - 3................................................................................................................................................9
Management Team.....................................................................................................................................9
Business Organogram..............................................................................................................................9
Curriculum Vitae....................................................................................................................................10
Section - 4..............................................................................................................................................15
Product description...................................................................................................................................15
Section - 5..............................................................................................................................................19
Marketing Plan..........................................................................................................................................19
Target Market............................................................................................................................................19
Pricing Strategies.......................................................................................................................................19
Promotional Tools.....................................................................................................................................20
Section - 6..............................................................................................................................................21
Financing the Business..............................................................................................................................21
Total Budget and Sources of fund for the Business:..................................................................................21
Allocation of fund:.....................................................................................................................................21
Fixed assets:..............................................................................................................................................21
Initial purchase:.........................................................................................................................................22

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Projected Income Statement are as follows:.............................................................................................24
Profitability Analysis..................................................................................................................................25
Section - 7..............................................................................................................................................26
Conclusion.................................................................................................................................................26
Section - 8..............................................................................................................................................27
Referencing...............................................................................................................................................27

Section - 1
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Executive Summary

It is 2021 and technology is all around us. It is taking over everything slowly but surely,
including businesses and how businesses operate in general. Traditional ways of doing
business are being replaced by modern ways. We are following that modern path. Me and
my friends, 5 of us to be exact have gathered to start – up a new online business. We have
decided to call our new venture, Fabrics & Scissors. We would like to adopt the concept
of tailoring digitally. As this is going to be an online business, we do not have to worry
about a physical workplace or taxes initially. And the potential for our business growth is
limitless in our opinion. However, this is going to be easier said than done.

Our vision is to combine custom tailoring and delivery all under one roof. We plan to do
this by giving our customers as much freedom as possible. Our customers will be able to
pick a design of a dress from a variety of collections from our website. They will also
have the luxury to tailor fit their clothes if they desire. They will also get to choose the
fabric which will be used to create their dress. We plan to start our business online via a
website initially and support it with a custom-made application. This application will be
released on both Apple and Play Stores, respectively. It will be user-friendly and will
help us reach more audiences.

As this is a start-up, entry into the market is crucial. We plan to strengthen it via heavy
advertising. We have decided to use famous fashion designers and tailoring celebrities
and influencers to help us enter the market. Slowly, but surely, we will use their influence
and fan-base to help spread the name of Fabrics & Scissors. This will assist us to increase
sales and overall profit in the long run. This will also give allow us to gain brand loyalty.

(How to Write an Executive Summary, 2020)

Section - 2

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Company Background

Mission Statement: To provide quality made tailored products at your doorstep.

Vision Statement: We strive to be a market leader in fashion-knit and fashion

outerwear industry by empowering innovation to provide complete customer satisfaction.

This is mainly an online-based business. From designing, ordering and the transaction of
the business will be done online. If this business is successful, it will be a great advantage
for working people here in Bangladesh. As people and technology are getting advanced
day by day they can design and order their clothes using our App or website at a
reasonable price. If they face any problem, they can reach our hotline number.

SWOT Analysis

Strengths
 We are allocating the best tailors in the city and bringing them under one roof.
 Less time-consuming and easy to reach us.
 This will be helpful during this time of Pandemic.

Weakness
 For the consumers, it will take a bit of time to understand and get used to our
system.
 Tailor loyalty might be an issue.
 Lack of experience might also play a role.

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Opportunities
 Sponsors - If the business starts shining then we will try to look for more sponsors
to finance our business. We will try to expand my website and even hire people to
look after it if I get sponsors.
 Partnerships – Easy to startup the business as a partnership requires less formal
and legal documentation than limited companies. In partnership, we can share our
area of specialization, knowledge, and experiences.

Threats
 Technical difficulties – This is a website after all and technical issues may arise
like the server not working at all, also known as a server error.
 Potential competitor – Although there is not any competition right now, someone
with a huge financial backup can penetrate the market, takes our idea, and knocks
us out of the market.
 Security – The website will have to be protected with state-of-the-art encryption to
prevent theft or data loss as hacking is an issue. This will be very costly.

(How SWOT (Strength, Weakness, Opportunity, and Threat) Analysis Works, n.d.)

Industry Analysis
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PESTLE Analysis:

• Political- The current political situation of Bangladesh is quite stable for the time
being.

• Economical- Economical factors such as inflation rates, interest rates, etc. will
influence our business.

• Social- Social factors will positively affect our business as it does not target any
particular religion, it is ethical, and it follows current market trends (e-business).

• Technological- Right now it is difficult to predict the performance of our product. But
we can assure that it will provide state of the earth technology and we will also have
experts on our team. We will try to update the technologies involved in our production
and to co-op with the changes in the future market demand.

• Legal- We will have to analyze and act accordingly to all the legal developments
happening around the environment.

• Environmental- Environmental factors will not affect our business. As our business is
not influenced by any environmental factors. Neither does it create any pollution.

(Corporate Finance Institute, n.d.)

Section - 3
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Management Team
Business Organogram

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Curriculum Vitae

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Section - 4

Product description
Tailoring at your doorsteps. Fabrics & Scissors is trying to bring you a whole new
experience of your wardrobe preference. From ready-made to custom, from western to
cultural outfit, from Suits to Punjabis, from floral touch fairy gowns to Salwar & Kamiz.
You can just choose what you want to wear and get it at your doorsteps without moving
at all. We at Fabrics & Scissors intend to target customers of every age group and gender,
from children to senior citizens.

People of Bangladesh want to follow the trend, they also want to wear designer and
branded clothes, which is very rare and expensive in our country. Realizing the situation
we 5 (Mirza Sadman Sakib, Azmain Nadeed, Abrar Ahmed, Rishon Rahman, and Hrithik
Sharker) planned to open up a business where we will provide designer and branded
quality clothes to our customers at a much cheaper rate.

Firstly, installing our app from the play store or app store, customers have to register in
our app, and then the customers can order their desired goods and services through the
app. We will be just one order away from our customers. Fabrics & Scissors will be
bringing a very convenient app that will make the work easier for our customers. After
placing the order, we will start producing the product in our workshop with highly skilled
workers and imported efficient machines. If anyone is unsure about the measurements,
one of our tailor masters will go to the address of our potential customers. Our tailor
master, after going there will take the necessary measurements and details of the
customer. After that our tailor master will show a dummy of the finished product to the
customer on a tab as a 3D diagram and will also give the privilege to the customer of
choosing the fabrics, buttons, and other accessories of the dress. If someone is not good
to go with the app and reach us through Facebook or our hotline number, we will assist
them by creating a user id in our company. Every customer of Fabrics and scissors will
have a user id with a unique identification number, which will help us to track our
customer’s past orders and preferences with just one click.

Fabrics & Scissors are hiring the top most experienced tailors around Bangladesh, our
fashion designers have participated in many competitions on fashion designing. They also
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worked under well-known brands like Fit Elegance, UniQlo, Vasavi, Bishworang, etc.
One of them also got training under Davide Taub, Head cutter and bespoke tailor of
Gieves & Hawkes, in England. Our tailors & designers have represented Bangladesh in
the world’s most famous fashion designing competitions like Dorchester Fashion Prize,
2016 San Diego International Kids Film Festival Fashion Competition.

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Figure – 1

Figure – 2

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Figure – 3 Figure – 4 Figure - 5

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Section - 5

Marketing Plan

Target Market
Generally speaking, our target market is everyone. Everyone who has a smartphone. But
to be precious our target market is working men and women who work all day and do not
have the time to buy clothes for their family members and themselves. We will reach out
to them through our website instead of them coming to us. Fabrics & Scissors will get
them the best tailors in the city. and that too within a few minutes. We are also giving
them the luxury of ordering their children’s uniforms using our app.

Older citizens can also reach us since some of them might not be able to visit the tailor or
order using our website. In that case, they will only contact us using our official mobile
number and we will be at their doorstep to take their order. Our team members will take
all the measurements and other necessary steps to complete their orders. We will also
deliver them to their doorstep within due time.

Pricing Strategies
Fabrics & Scissors is not going to compromise on quality. And quality has a price to pay.
Undoubtedly we need to be reasonable as well but at the same time, we will need to make
enough money before the other competitors enter this business.

Initially, Fabrics & Scissors will be a business-to-consumer (B2C) business. So we need

to make the best use of it. My team members have done their research in the market and
managed to come up with pricing which might be convenient for the business and at the
same time suitable for our consumers. We have categorized it into three sections. Men,
women, and children. For the men’s section, we are offering tailor-made Punjabi, pajama,
shirts, and pants. We are charging TK 500 for the Punjabi, TK 300 for pajama. For shirts
and pants, Fabrics & Scissors are charging TK.650 for each.

For the women’s category, we are providing kamiz, salwar kamiz, and plazo. Kamiz will
be charged TK.500, salwar kamiz TK.800 and TK.500 for the plazo. And at last, we will
be providing frock for the girls and shirts for the boys. Both of them will cost TK.350.For
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school uniforms, we will charge TK.600. We are estimating a delivery charge of TK.60
AND TK.100 if we have to take the order from the customer’s house. The price of the
product might vary by the design given by our customer.

Promotional Tools
As we have mentioned earlier, Fabrics & Scissors will be bringing in the best tailors of
the city under one roof. If we can do this successfully, then we will be able to attain a
loyal customer base into our business. A recent study has revealed that people normally
don’t prefer changing their tailor and barber too often. They are more comfortable in
getting their services from their previous tailor and barber. If we can manage to grab
those customers and assure them that they will receive the same service from their tailors
as before and that too sitting at their home, this will be a huge success for the company.

Fabrics & Scissors will use Instagram influencers to promote our business since all our
group members know a lot of influencers. We will be sending them our products to
review them and ask them to put a story of our product on their Instagram account. We
will be putting ads on Facebook and YouTube as well. One of our group members has a
friend on the local radio station and he will help us to spread the word.

Fabrics & Scissors will introduce lucrative offers such as BOGOF, vouchers & coupons,
loyalty cards, referral codes, and discounts during festivals like Pohela Falgun, Pohela
Boishak(Bengali New Year), Eid-Ul-Fitr, Eid-ul- Azha, Durga Puja, and Christmas Day.

After three years, we are planning to sponsor underground football and cricket
tournaments to attract popularity and to catch an eye. In the long run, we plan to use
athletes like Sakib Al Hasan and Jamal Bhuiya, and actors like Siam Ahmed and
Mehzabin to promote our business.

(By: Noah Parsons et al., n.d.)

Section - 6
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Financing the Business

Total Budget and Sources of fund for the Business:

By doing all the hard works since our O’level days till our last job we five came up with a saving
of TK. 5, 00,000 each by giving tuitions, saving money from our day to day expenditures and
saving a petty amount each month from salaries that we used to get from our job. To set up the
business we need TK. 60, 00,000 in total to start the business. All together we raised an amount
of TK. 25, 00,000 and need a loan of TK. 35, 00,000.

Allocation of fund:
There are Capital expenditures that will occur at the start. We need machinery to produce goods
and services, we need desks, tables, chairs, fans, AC, fixtures, and fittings for workshop, office,
and warehouse, 6 computers are required to keep track of the business. As it is mostly an online
base shop, computers will take out most of the operations and few of our pieces of machinery are
run by computer commands. As we are building the app it will cost around $10000(TK.8, 50,000
approx.). Our Workshop, office, and warehouse are under one roof and advance payment is
required to rent out the 6,000 sq. ft. of premise and all of these will be our fixed asset for the
business. The following sets up costs are estimated as follows:

Fixed assets:
Fixtures and Furniture TK.15,00,000

Computers TK.3,00,000

Machinery TK.4,00,000

Software TK.8,50,000

Workshop and warehouse advance TK.12,00, 000

Initial purchase:
Raw materials TK.8, 00,000

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Fixed Assets and Initial purchase for setting up the business will cost us around TK. 50, 50,000,
and the remaining TK. 9, 50,000 will be allocated as working capital for the business and the
money will be kept in the business’ bank account. Working capital is the lifeblood of a business.
No business can run effectively without a sufficient quantity of working capital. A business with
ample working capital is always in a position to take advantage of any favorable opportunities
such as buying raw materials at a discount rate, implementing customers’ special orders, to
payday today's cost of the business. The overall success of a business depends upon its working
capital position so it should be handled properly because it shows the efficiency and financial
strength of a business.

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Fig - 6

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Fig - 7

Projected Income Statement are as follows:

Details: As of 31 As of 31 As of 31
July’2022 July’2023 July’2024
(Tk. 000) (TK. 000) (TK. 000)
Revenue 3400 3903 4400
(-)Cost of goods sold:
Opening inventory - 120 100
Purchase 800 850 880
Carriage inward 50 53 55
(-)Closing inventory (120) (100) (110)
Cost of sales (730) (923) (925)
Gross Profit/loss 2670 2980 3475
(-)Expenses:
Salaries and wages 1000 1000 1000
Machinery maintenance cost 15 15 15
Advertisement 100 100 100
Rents 500 500 500
Electricity 385 395 350
Water 60 45 50
Stationery and Printing 25 20 18
Carriage outward 50 55 57
Service charge 150 150 150
Interest on loan 300 300 300
Depreciation:
Machinery 40 40 40
Fixtures and fittings 300 300 300
Computers 60 60 60
(2985) (2980) (2940)
Profit/(loss) before tax and interest (315) 0 535
(-)Tax (7.5%) - - (40)
Net profit/(loss) for the year (315) 0 495
(-)Appropriation:
Share of profit/(loss):
Azmain 1/5 (63) 0 99
Hrithik 1/5 (63) 0 99
Mirza 1/5 (63) 0 99
Rishon 1/5 (63) 0 99
Abrar 1/5 (63) 0 99
(315) 0 495

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 Profitability Analysis

Details As of 31 July,’2022 As of 31 July,’2023 As of 31 July,’2024

Gross Profit Margin % (2670/3400) x 100 (2980/3903) x 100 (3475/4400) x 100

= (Gross Profit/Sales) x 100 = 78.53% = 76.35% = 78.98%

Net Profit Margin % (-315/3400) x 100 (0/3903)/100 (495/4400) x 100

= (Net Profit/Sales) x 100 = -9.26% = 0% = 11.25%

In the first year of the business, our gross profit margin is 78.53% and as we are making a
net loss over the year the net profit margin is reflected at a negative rate of (-9.26%). In
the following year of Fabrics & Scissors is making a gross profit margin of 76.35% and a
net profit margin of 0% because we will be reaching the break-even point, where the
business is making neither loss nor profit. In the third year, the gross profit margin has
increased by 2.63% and the net profit margin rises 11.25%.

Fabrics & Scissors are making a loss and break-even at the first two years respectively
but in the third year, they are facing profit. The business has got potential to be successful
in the long run. Fabrics & Scissors is incurring loss in the first year and reached the
break-even point in the second year in accounting terms as we are including non-cash
expense such as depreciation. We are considering depreciation as the “Prudence concept”
states that do not overestimate the number of revenues recognized or underestimate the
number of expenses.

(SEC.Gov | Beginners’ Guide to Financial Statement, n.d.)

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Section - 7

Conclusion
In general, startup companies like Fabrics & Scissors operate in a world of their own. We
personally think that we can make this business shine in the online realm as it is the first
of its kind. We hope that consumers will positively react to this business. Failures due to
financial instability or due to competitors throwing us out of the market are unlikely.

As all 5 of us are well known in our respective friend circles. We have both access and
good relationships with a few specific celebrities and influencers. We plan to use their
help to grow our business and find venture capitalists. We are confident that we will be
able to find people who are willing to invest in our business.

Due to Fabrics & Scissors aggressive marketing strategy and establishment of the
company as a "unique" entity in its industry. Our business has the potential to provide
lucrative returns to potential investors. Provided that our business can acquire its funding
requirements. Our business will be able to achieve operational success for many years
ahead.

(Business Plan Conclusion, n.d.)

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Section - 8

Referencing

 Business Plan Conclusion. (n.d.). Nicholascoriano. Retrieved April 23, 2021, from

http://www.nicholascoriano.com/2013/09/business-plan-conclusion.html

 Corporate Finance Institute. (n.d.). PESTEL Analysis. Retrieved April 23, 2021, from

https://corporatefinanceinstitute.com/resources/knowledge/strategy/pestel-analysis/

 How SWOT (Strength, Weakness, Opportunity, and Threat) Analysis Works. (n.d.).

Investopedia. Retrieved April 23, 2021, from

https://www.investopedia.com/terms/s/swot.asp

 By: Noah Parsons, Berry, T., Berry, T., Mann, N., T., & T. (n.d.). How to Write a

Business Plan in 2021 — Comprehensive Guide. Bplans Blog. Retrieved April 23, 2021,

from https://articles.bplans.com/how-to-write-a-business-plan/

 How to Write an Executive Summary. (2020, February 6). Inc.Com.

https://www.inc.com/guides/2010/09/how-to-write-an-executive-summary.html

 SEC.gov | Beginners’ Guide to Financial Statement. (n.d.). SEC. Retrieved April 23,

2021, from https://www.sec.gov/reportspubs/investor-

publications/investorpubsbegfinstmtguidehtm.html

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