spirit bangladesh business plan

Roam with the flavor of Bangladesh



Business plan for SHOPPING BAGS

Course Name# Entrepreneurship DevelopmentCourse no# BA-305

Submitted to#Mr. Md. Nur AlamAssistant Professor

Submitted by#Mehdad Mamur Mannan, ID# 040301

Tareq Islam Shuvo, ID# 040303Farjana Ehsan, ID# 040319

Shahana Ferdousi, ID# 040334

Business Administration Discipline Khulna University November 06, 2006.

31. Executive Summary 5-62. Description of the Business 7-10

2.1. Business Idea2.2. Goals & Objectives2.3. Market Opportunities2.4. Mission2.5. Description of the Product2.6. Business Objectives

3. Evaluation of Market Opportunity 11-133.1. Market Size & Trends3.2. Customers3.3. Competition3.4. Differentiation

4. Marketing Plan 14-184.1. Marketing Objectives4.2. Marketing Strategy

5. Description of Development and Production 19-245.1. Development of Product5.2. Production Process5.3. Human Resource Planning5.4. Future Product Development


Contents

Page Numbers1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37

46. Management & Operations Plan 25-28

6.1. Management Description6.2. Support Services6.3. Ownership

7. Financial Plan 29-347.1. Funding & Breakeven Point7.2. Pro forma statement of activities 7.3. Analysis of Major Expenditures & Incomes

8. Risk Assessment & Contingency Plan 35

9. Supporting Documents A


Contents

Page Numbers1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37

An idea changes lives- people often say so and many times we have seen the proof of that. However, idea needs to be feasible so that it can be turned in to innovation. Now SpiritBangladesh is here top turn an idea in to a wonderful innovation. Basically SpiritBangladesh is a shopping bag manufacturer that wants to fetch a revolution in the shopping bag industry of Bangladesh.

Business- SpiritBangladesh SpiritBangladesh wants to do business with the unbeatable spirit of Bangladesh, therefore it wants to attach the spirit of the country with its products that is shopping bags. Unlike other conventional shopping bag SpiritBangladesh will bring the pictures of Bangladesh’s nature, places, personalities, culture, heritage, history etc. on its shopping bags. These will drive the people emotionally towards the spirit of Bangladesh. Apart from that SpiritBangladesh has got a noble mission to contribute its 7% of profit for the cancer patients of Bangladesh.

Market-SpiritBangladeshNow all people are feeling irritate of having excess and traditional shopping bags. Even if all the stores are already taking shopping bag from their suppliers but yet there is a huge potential left for new and innovative idea to grab the market. The marketing object of SpiritBangladesh will be to attract the customers and the users as well. The idea and distinctive features are the strength of SpiritBangladesh, at the same time the weakness is motivating the customers with the new idea. Yet there is a huge potential left for SpiritBangladesh.


Executive Summary

6

Production- SpiritBangladeshThe production plant of SpiritBangladesh will be in the capital city Dhaka because all the raw materials required for that can be available there. SpiritBangladesh’s all the bags will be very much environment friendly. There will be standard of quality assurance.

Management & Human Resource- SpiritBangladeshSpiritBangladesh believes in creating skilled workforce who will be derived by innovation. There will be regular training program for all the personnel to ensure efficiency and up gradation. SpiritBangladesh will be a learning organization for the employees. The expertise of the management is beyond question. Operation & Finance- SpiritBangladeshSpiritBangladesh’s will be strictly monitored by the top management. The top management will be the owner of the venture and they will share the profit. It is expected that the company will reach the breakeven with in 2009. The company will be able to decrease its costs after 2 years of operation. And finally the SpiritBangladesh has already been decided to provide 7% of its profit fie the cancer patients.


Executive Summary

2.1. Business Idea

SpiritBangladesh will be a shopping bag manufacturing company that will produce shopping bags for the consumers of different renowned shops, outlets and shopping malls/super stores. However this company will not produce the conventional paper bags or shopping bags. Basically image craft will produce bags of 3types of materials. They are- *) Paper- All Environmental friendly papers will be used for making these bags. For making the handles, high quality threads will be used. *) Cloth- Pure Bangladeshi cotton fabric will be used for these cloth bags. *) Jute- Jute is our lost glory. To reign this, SpiritBangladesh will produce aristocratic jute bags. These will be a bit expensive and internationally presentable.

The uniqueness that SpiritBangladesh will bring in its product is demonstrating the Bangladeshi spirit. Basically on this bags, like the other conventional shopping bags, the name logo, address or features of a particular shop/ outlet / super store will be printed. Besides these bags will come up with the printed pictures our Bangladesh’s nature, culture, heritage or even the famous personalities. That means these bags will portray the image of Bangladesh. Through these bags “SpiritBangladesh” will try to encourage people to explore Bangladesh. Even on these bags there will be lives of Bangladesh’s famous patriotic songs or poems, that will create a strong emotional impact among people. But perhaps the most amazing feature of this company will be its social awareness through its business. The company has a vision to aid the cancer patients of this country. For this the company will contribute 7% money for its every unit of sale to the cancer victim of the country. Therefore , Spirit Bangladesh is going start a kind of business that has never seen yet in the history of Bangladesh.


Description of the Business

It is not only a shopping producing firm, rather it’s a venture to explore, innovation, serve the country.

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2.2. Goals and objectives

SpiritBangladesh is going to established with some goals and objectives. Primarily we may say that these goals and objectives are-

*) Producing carriage solution to the consumers. *) Enhancing the use of environment friendly materials, that can meet demands in

reasonable price yet does not harm the environment. *) Focusing the beauty and glory of Bangladesh among people so that they become

even more inclined to explore Bangladesh. *) Fostering the patriotic emotion among the people. *) Finally to contribute the society by standing beside the cancer victims of the nation.

2.3. Marketing Opportunities

Every now and then the number of consumers of different shops and super stores are increasing. So the demand for the shopping bags is ever going high. SpiritBangladesh is primarily targeting the superstores of Bangladesh and other renowned departmental stores of Dhaka and other major cities. But it has a vision to spread it’s a result the company has got a huge market opportunity. Every day many new superstores and shopping malls are getting established in Bangladesh. This is also indicating a very prospective market for Spirit Bangladesh.



92.4. Mission

Spirit Bangladesh is a shopping bag manufacturer that not only produces its product but also fosters the spirit of Bangladesh among its consumers. By carrying commodities in the bags of “Spirit Bangladesh”, people are also contributing for the cancer victims of the nation and exhibiting their consciousness to keep their environment healthy. Thus Spirit Bangladesh wants to do a simple business in a distinctive manner for the welfare of people and nation in the class of its own.

2.5. Description of the product

Product Name- Shopping Bag.No. Of Types- 3Material- Paper, Cloth and Jute (100% environment friendly)Size- 6 Different sizes.Special Feature- Name, logo, address and feature of a particular shop/outlet/superstore. Further the bags will have printed picture on Bangladesh’s nature, heritage, culture and personalities. On the pictures, lives from our famous patriotic songs or poems will be printed.



Thus Spirit Bangladesh wants to do a simple business in a distinctive manner for the welfare of people and nation in the class of its own.

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2.6. Business Objectives

The following is a list of the significant business objectives of “Spirit Bangladesh”.

=Promote and popularize the spirit and affection for the Bangladesh among the people.=Grab as much market share as possible since we are completely innovative in this sector.=Maximizing profit so that we can contribute more to the cancer patients of the country.=Delivering optimum service to the consumer so that they not only fall for our idea but also

become loyal to our products.



3.1. Market size and Trends

Spirit Bangladesh will be very selective in choosing its markets. Only the renowned and trusted shops/outlets/superstores and their consumers will be the market of this company. So at initial stage the company is starting with some super stores and some other renowned shops.

These days people are quite conscious about the environment. So they want to use environment friendly shopping bags. Moreover, with the growth of population the number of consumers of different shops/outlets/superstores are increasing. So the demand for shopping bag has got a new dimension. Finally all the renowned shops want to deliver their product in a nice , useful and standard shopping bag that also bears the image of the particular shop. So the current trend looks very very promising.

3.2. Customers

-Customer SegmentationSince we want to sell our product to only those

shops/outlet/superstores which have a minimum reputation. We are taking some super stores and some other renowned shops as our potential customers. However we do have a market segmentation according to the volume of purchase by the customers. That segmentation as follows-

Master Consumer: Customers that purchase 15,000 unit per month.Elite Customer: Customers who purchase more than 7000 but less than 12,000 unit per month.General Customer: Customers who purchase more than 4,500 but less than 6,000 units are of this group.


Evaluation of Market Opportunity

12

3.2. Customers

-Customer’s Motivation

The customers will be motivated by our-• Attractive price• Unbeatable Idea• Supreme quality• Excellent Service• Motto to contribute to the society

3.3. Competition

Though there is no other company in the market that is doing business with our idea. But yet we are not free from the competitors threat. We have-

Direct Competition: We have direct competition with all the shopping bag manufacturers and printing presses that are doing business with the current shopping bag manufacturers within Khulna city.

Indirect Competition: We have indirect competition with all the manufacturers of small paper packets and net bags. Still some people are illegally producing banned poly-bags. These people are also competing with us indirectly.

Potential Competitors: All the potential companies that might come up with new ideas and materials in packaging industry are Spirit Bangladesh’s potential competitors.



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3.4. Differentiations

-Strength• Unbeatable idea• Attractive price• 100% environment friendly high quality material.• Flexible offerings• Efficient Workforce• Smooth distribution network• Strong customer service

-Weakness• Completely new idea• Availability of raw material

-Opportunity• Opportunity to contribute to the society• Ever increasing number of consumers.• Absence of new idea.• Wide opportunity to expand.

-Threats• Misrepresentation of customer psychology• Misinterpretation from the part of customer• Emergence of any new company with any other idea.• Withdrawal of restrictions on poly bags.


StrengthWeakness

Opportunity & Threats


Innovation is our strength

4.1. Marketing Objectives

-Marketing Objectives are

• Ensuring excellent quality all through• Assessing customers demand and meeting them adequately.• Marketing customers satisfied with the asking price.• Ensuring wide availability of product.• Building “Spirit Bangladesh” a strong brand.


Marketing Plan

154.2. Marketing Strategy

-Product

Product Name- Shopping Bag.No. Of Types- 3Material- Paper, Cloth and Jute (100% environment friendly)Size- 6 Different sizes.Special Feature- Name, logo, address and feature of a particular shop/outlet/superstore.

Further the bags will have printed picture on Bangladesh’s nature, heritage, culture and personalities. On the pictures, lives from our famous patriotic songs or poems will be printed.


Marketing Plan

Its environmental friendly

16


-Price

Price would be a crucial issue for our products. We Know for new product pricing we can use two pricing strategies- Market Skimming and Market Penetration. Here, SpiritBangladesh will adopt Market Penetration Strategy. That means the firm will set an initial low price in order to penetrate the market quickly and deeply- to attract a large number of buyers quickly and win a large market share. As a result, the high sales volume results in falling costs, allowing the company to cut its price further if needed.Since SpiritBangladesh makes shopping bags of 3 different materials, the price of each type will vary. The price will mainly depends up on the cost and availability of the raw materials, competitor’s price and of course up on our cost of goods sold and there by our targeted profit margin. Basing up on all these variables for each type, SpiritBangladesh has decided to fix its initial price mix in the following way-Paper Bags- 5.00 taka per unit (average price, because price will vary in terms of size).Cloth Bags- 7.00 taka per unit (average price, because price will vary in terms of size).Jute Bags- 10.00 taka per unit (average price, because price will vary in terms of size).However price may change depending on different variables.


The firm will set an initial low price in order to penetrate the market quickly and deeply- to attract a large number of buyers quickly and win a large market share.

Marketing Plan

17


-Promotion

SpiritBangladesh always considers its product as a creative piece. Therefore the company believes in promotional activities that not only attract its customer by their rational value but also by their emotional drive. But in this case we have financial limitations. So we think to popularize our idea and thereby our product we need effective but cost efficient promotional method like Personal Selling. This method will major emphasize. Besides we will establish some billboards in front of the renowned super stores and shopping malls all around the country. Without that we will also have billboards in all the major tourist cities (i.e. Cox’s Bazar, Sylhet, Chittagong Hill Tracts and so on) of Bangladesh as our product does bear some tourism value. Some specimen of our promotion has been provided in the appendices.


Spiri

tBa

ngla

desh

Marketing Plan

18


-Place

We want to do our activities being very close to our customer. That is why SpiritBangladesh wants to maintain a very strong and smooth distribution network all through. Our distribution will be conducted by the Company Sales Force. The nature of distribution is basically Selective Distribution. The company itself will manage all its logistic support. In the following flow chart we might have an insight of the SpiritBangladesh’s distribution channel.


Suppliers

Suppliers

Suppliers

Labor force

Region

Region

Region

Stores

Stores

Stores

Emergency

SpiritBangladesh

The nature of distribution is basically Selective Distribution.

Marketing Plan

5.1. Development of Product

-Product Development

SpiritBangladesh is a company which produces packet or shopping bags for the departmental and chain stores. Focusing on the customers need and buying pattern SpiritBangladesh has developed its product. Its products are-

-Shopping bag made of papers: Paper will be used as raw material for this type of bags. There will be difference of size of these bags. All these size will be determined by the current product available in the market and as per the requirement of the owners of the shopping centers.

-Shopping bag made of Cloth: Cloth will be used as raw material for this type of bags. There will be difference of size of these bags. All these size will be determined by the current product available in the market and as per the requirement of the owners of the shopping centers.

-Shopping bag made of Jute: This is another special type of bags. This bags will be made to promote the jute of our country and as well as to remind the golden days of our jute. This bag will be bit expensive but also bit aristocratic. This bag can be internationally presentable.


SpiritBangladesh

Development and Production

5.1. Development of Product

-Milestones

The milestone of our product will be measured in two terms. First of all we want to create a strong customer and users base through emotional representation. Then we will look for increasing the usage rate of our bags. Our target is to attract our customers as well as users in terms of quality, design, emotional attachments, pricing and comforts.

-Patents

SpiritBangladesh will hold the patent of the new and innovative institutionalization of shopping bag manufacturing. SpiritBangladesh will hold the authority to produce, develop and modify the product. In this competitive age it is the interactive right to have the authority of a unique business idea where the image of the country uplifted and explored. It is not less than representing the country with the business venture.

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5.2. Production Process

-Production Method (i.e., Internal or outsourcing)

It is a great consideration how SpiritBangladesh will produce this large number of shopping bags. It is a matter of manifold considerations including supplies of raw materials, designing, equipments, materials etc. to operate the production unit locally. But as SpiritBangladesh want to explore its potential in the whole country, initially it will establish its production unit in Dhaka but gradually it will establish its production units focusing on its markets and customers. SpiritBangladesh will not produce all the things by itself. Raw materials like papers, cloths, jute will not be internally completed. But other things like printing materials, assembling the whole bag, distributing will be done by SpiritBangladesh. SpiritBangladesh will buy the printing machine although these are expensive but just to hold the quality of picture. SpiritBangladesh will also appoint fulltime designer in order to ensure the changing trends of design so that users never get irritated.

-Milestones

The ultimate goal of SpiritBangladesh in production process is to develop a very much cost efficient production method of shopping bag manufacturing. The method will be developed in such a way so that easy diversification is possible. The production method will also be the matter of patent.


Spirit

Bangladesh


225.2. Production Process

-Suppliers

In case of selecting suppliers, SpiritBangladesh will focus on three considerations-Quality: Suppliers should ensure the required quality of raw materials.

Another consideration is there should not be any substances that can harm the environment in the raw material. That is all the raw materials should environment friendly. As the raw materials will not be changed in the main production, it will just modify so SpiritBangladesh will be very cautious in the quality of the raw materials.

Price: Price is a vital consideration in case of raw material supplies. No business can be economically feasible without having cost effective raw materials. So the supplier should ensure the least price for the best raw materials.

Availability: A supplier with best quality and least price will not be selected unless the supply of their raw materials is continuous. So availability is a vital factor that has to be by a supplier. SpiritBangladesh will consider this thing in case of selecting raw materials.

-Quality Assurance or Continuous Improvement

There will be provision for quality assurance through practicing some of the quality assurance tools. The business will be driven by the thirst of continuous improvement. It will also be driven by the beauty of innovation, exploration, exposition and composition. These all things are required to ensure the continuous improvement.



Quality, Price & Availability are our consideration in selecting our suppliers.

235.3. Human Resource Planning

-Labor Requirements

SpiritBangladesh need adequate and skilled labor to fulfill its mission. It will not continue operation on the basis of day to day demand. Rather considering the fact of unpredictability, SpiritBangladesh will focus on producing adequate shopping bags. The labor requirement will be determined by two factors, the quality and another one is quantity of the labor. Below there is a projection towards labor requirements for preparing the final bags.

QuantityAverage labor capacity per hour= 100 bags (5% error acceptable)Average working hour a day= 7hoursAverage production capacity for a labor per day= 100*7=700 bags.Total number of labor will be determined by total number of demand.

Skill requirementEducational Requirement: At least 8 years completed in school.Skill: Should have basic knowledge in bag preparing. Must have the capacity to work using both hands. The labors should also have some aesthetic sense.Physic: The workers should be physically fit to do the work continuously.

-Training

There will be provision to train the labors. The basic of their training is to accelerate accuracy in assembling bags. Their will be some training to grow the geometrical sense, speed etc.


We will train up our employees regularly, so that continuous improvement can be ensured.


Deve

lopm

ent

245.4. Future Product Development

SpiritBangladesh has a plan to grab the export oriented market. The packaging of export goods will be supplied by SpiritBangladesh. These products include cartons, containers and other export packaging. These products will represent the culture, history, traditions, natural beauty of our country. Some other businesses can be enhanced through this packaging. Image of the country is an indicator of the future economic growth of the country. So, our future plan regarding our forecasted product is to be the representative of our country as well as economically beneficial one. As our product will be protected by the patent, so we can share our idea with the some other country to be economically benefited. The future version of our product can be the global door to exchange cultures, history and tradition.


The future version of our product can be the global door to exchange cultures, history and tradition.


6.1. Management Description

The executive management team for the SpiritBangladesh is comprised of four members, described below. This team is responsible for strategic development and daily operations of the Marketplace. This team holds formal weekly meetings and is in regular communication to make all critical decisions relating to the SpiritBangladesh.

-Expertise

• Executive Management Team.President. Mr. Mehdad Mamur Mannan, co-founder and President of SpiritBangladesh, serves as President of the SpiritBangladesh and as its primary champion. Mehdad has completed his graduation in the country’s leading business school Business Administration discipline of Khulna University. He has expertise in Marketing and global business. In addition, Mehdad has successfully designed and launched several new ventures, including the event management unit of SpiritBangladesh and the marketing strategies for Warid telecom. Mehdad is responsible for the development and implementation of the marketing plan for the Marketplace and he oversees all planning and operations of the Marketplace. Mr. Tareq Islam Shuvo, Ms. Shahana Ferdousi, and Ms. Farjana Ehsan report to Mr. Mehdad.

The efficient team of SpiritBangladesh knows to share, lead, guide and win.


Management & Operations Plan


-Expertise

Executive Director. Ms. Shahana Ferdousi is serving as the Interim Executive Director of the SpiritBangladesh and is primarily responsible as Project Manager for the growth of the business, including negotiations for product procurement as well as marketing initiatives. Ms. Shahana in an entrepreneur with marketing experience. Over the course of her career, she has experiences in economics and planning. A results-oriented executive with extensive experience, she combines knowledge of marketing and promotion with expertise in strategic planning, business management, and negotiation. Shahana oversees product selection processes, negotiations with suppliers and printing, as well as managing operations and logistics.Chief Financial Officer. Mr. Tareq Islam Shuvo, who serves as the Chief Financial Officer for event management unit of SpiritBangladesh. Shuvo has expertise in financial forecasting and planning. He did his major in Corporate Finance. As being creative in nature, he always tries to use his financial knowledge in innovative businesses. Shuvo has superior skills in financial management and has provided strategic guidance for SpiritBangladesh’s event management unit during a period of unparalleled growth. Shuvo is responsible for the finances of the Marketplace and will contribute to the planning and implementation of strategic corporate involvement.Director of Operations. Ms. Farjana Ehsan, the Executive Director of the SpiritBangladesh, serves as the Director of Operations for the event management unit. Farjana has a by born ability to motivate and lead the people. Having this leadership skill she will oversee all the operations with her wise jurisdiction.

Mehdad Mamur MannanShahana FerdousiTareq Islam ShuvoFarjana Ehsan




-Team Formulation

The following teams will actively participate in the activities of SpiritBangladesh.o Information Technology. SpiritBangladesh has a highly skilled and dedicated IT staff and design team led by one chief designer. Under this team most of the members are part time worker. This team will manage the design, testing, and implementation of the pilot phase of the SpiritBangladesh. o Logistics and Implementation. Under Farjana Ehsan’s leadership, the SpiritBangladesh has strong raw material supplies infrastructure. A senior logistics team at the Menna Bazaar packaging, has also indicated their willingness to lend their expertise to the effort.o Communications. A broad range of communications needs is required to launch and maintain the Marketplace. Spirit Bangladesh’s Senior Manager of Communications, Md. Arif Zaman, will contribute oversight duties to the SpiritBangladesh. o Marketing & Distribution. Strong and persistent outreach to the full range of potential consumers will be required for the long-term success of the Marketplace. President Mehdad Mamur Mannan is leading the marketing efforts for SpiritBangladesh. • Governance. As the SpiritBangladesh’s business is a highly patriotic one, so the management team and the board of directors are highly enthusiastic to make a new thing happen. In addition, the SpiritBangladesh will recruit one voluntary external committees to assist the venture, as follows:o The National intellectuals. To provide informal guidance regarding the development of the idea as well as to increase the awareness and prominence of the venture, SpiritBangladesh is recruiting a small group of highly visible individuals to assist in a range of activities. The nominating process is underway and individuals currently under consideration include prominent writers, business leaders, and intellectuals.

SpiritBangladesh has all the supporting departments that a global business should have



286.2. Support Services

SpiritBangladesh is committed to explore the country in a unique way with profit. To ensure that efficient management is essential. So there will be learning session for the management team. The focus of the coaching programs will be drive the management towards efficiency

6.3. OwnershipBoard of Directors are the owner of the company. President will get 30% of

the profits, and other 3 will equally get the rest of the profits.


Spirit

Bangladesh


7.1. Funding & Breakeven Point

-Funding & Breakeven Point

SpiritBangladesh made the initial cash investment of BDT4000,000 for start up the venture. Additional costs of raw materials and day to day operation totaled BDT7500,000. The venture will be initiated using newly installed resources of SpiritBangladesh, including technological infrastructure, facility and staff time. A prorated portion of staff time and facility rent, totaling BDT200,000, was attributed to the SpiritBangladesh. There will be significant cash flow from the very beginning. The company will receive significant cash flow from the first year of its operation. It is anticipated that break even cash flow for SpiritBangladesh will come by December 2008.

Breakeven Sales=BDT11970000


Year

Sales in BDT

11970000

19000000

1 2 3Breakeven Point Analysis in total sales.

Financial Plan

Break even within 2 years of operation

30

7.1. Funding & Breakeven Point

-Economies of Scale and Infrastructure

The SpiritBangladesh during its pilot phase utilized the technological infrastructure, facility, database, staff, inventory and warehousing maintenance capacity, database of several thousand potential customers, and warehousing and publisher relationships of the other company. With this advantage, at this time there are no significant venture-specific facility costs, leasing issues, or equipment purchases. A percentage of infrastructure, facility and administrative costs are allocated to the SpiritBangladesh, as well as increases in marketing expenses and operations.


Financial Plan

317.2. Pro forma statement of activities


Yr. One Forecast

Yr. One Forecast

Yr. One Forecast

Operating RevenueSales

Total Operating Revenue

Cost of ProductSalary & BenefitsRaw MaterialsOverheadInfrastructure Costs

Total Cost of goods

Grant Profit

ExpensesDepreciationStart up cost

Total Expenses

Net Income/ (Loss)7% of the incomeNet Income

8000000 14000000 190000008000000 14000000 19000000

2500000 3000000 40000005000000 9000000 11000000150000 225000 365000220000 250000 275000

7870000 12475000 15640000

130000 1525000 3360000

100000 100000 100000 4000000 - -

4100000 100000 100000

(3970000) 2545000 3260000- 178150 228200- 2366850 3031800

Key Assumptions:Here is a projected statement of activities for the next 3 years. All the values are projected and can be changed.As we are producing only one product so our it is assumed that shopping bags are the only source of our earning.Our startup capital will come from our savings and donations. So, there is no interest charge.

Financial Plan

327.3. Analysis of Major Expenditures and Income

Here is a projected analysis of major expenditures of SpiritBangladesh-

Raw Materials- Expenses on machineries are one of the major expenses in this business. As the vision of SpiritBangladesh is a high, they have decided to buy their own printing and cutting machines to reflect their vision. This huge expense will cost BDT 3000000.

Salaries- There are huge expense for paying the salaries of the labors and management. There is another expense for regularly train up the employees. SpiritBangladesh want to be a learning organization where performance and learning will be evaluated together. For the first year this expense will be BDT2500000.

Marketing Expense- SpiritBangladesh will go for personal selling for its customers. So, there will be salaries instead of marketing expenses. But there will some other promotional activities too.

Distribution Expense: We have expenditure for distributing our product to the customers. For this purpose we will hire vehicles from outside though the distribution channel will be on the company’s control.

Here is a projected analysis of major Income of SpiritBangladesh-

Sales- Sales is the only source of earning in this business. From the second year of operation there will be rapid increase in sales revenues. This revenue is projected to reach almost BDT19000000 in the third year, 200% of second year.


Sales

Raw MaterialsSalariesMarketingDistribution

Financial Plan



Cost Treands

7870000

12475000

15640000

Year

Cost

s

Series1

In the graph beside it is clear that there is a downward trend of costing. Efficiency in operations resulted that.

Financial Plan



Sales Trends

8000000

14000000

19000000

1 2 3

Year

Sale

s

Series1

In the graph beside it is clear that there is a upward trend of sales. Efficiency in marketing and distribution resulted that.

Financial Plan

-Major Risks and Management Plan to Mitigate Risk

• Risk: Low sales. Mitigation: if sales go downward then SpiritBangladesh will give its effort for personal selling. Excellent and trained sales force can help to increase the sales.

• Risk: Competition. Mitigation: Competition is inevitable. Our distinctive features are the key to our sales. In case of competition we will attract our customers with our distinctive features.

• Risk: Difficulty attracting talented staff. Mitigation: It may seem difficult to find the appropriate personnel. But attractive package offering for the personnel and opportunity to learn can motivate the right personnel.

• Risk: Marketing barriers. Mitigation: SpiritBangladesh believes that the expertise of experience Mehdad Mamur Mannan is well enough to destroy marketing barriers. But in case of emergency we will develop some contingency planning for consistent performance

• Risk: Crisis in reputation. Mitigation: from the very begging SpiritBangladesh will try to create its value in its own market. Our value will be our recovery in the situation of crisis on reputation. We also can make advertisement to remove any rumor.

• Risk: Inadequate space. Mitigation: Our operations team will always look at that.


Our contingency plan in every section is capable enough to rescue the venture.

Risk Assessments and Contingency Plan


Sample Advertisements

Spirit

Bangladesh

SpiritBangladesh

Get smart Get the spiritof Bangladesh

Get smart Get the spiritof Bangladesh


Sample Billboard

Spiri

tBa

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desh

THINK LIGHT, THINK DIFFERENT


spirit bangladesh business plan

Documents

strength of spiritbangladesh

shopping bags course

flavor of bangladesh

traditional shopping

cloth bags

shopping bag manufacturer

business objectives

management description