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M/s. Alpona Label
Plot-36, Road- M. Bir Uttam Road
Ashulia, Savar, Dhaka.
Phone No: 02-9895777
Sl. No Name Title Address Contract
1Md. Bhuiyan Al Mahiuddin General
Manager
(GM)
247, ConcordTower, Katabon
Road, Katabon,Dhaka.
01671139861
2 Md. Saiful Islam Masud Assist.
General
Manager(AGM)
10/4, 3rd Floor,
Shantibag, Malibag,
Dhaka.
01815483804
3 Md.Shaiful Hassan Marketing
Manager
House: 128, Road: 7,
Dhanmondi, Dhaka.
01737195614
4 Md. Habibur Rahman Marketing
Manager
House: 37, Road: 5,
Banani, Dhaka.
01918780728
5 Mahmuda Akter Accountant House: 15, Babor
Ali Road,
Mohammadpur,
Dhaka.
01736323933
6 Sabiha Afsari Finance
Manager
123/6, Uttora,
Dhaka.
01915998068
7 Nazmun Nahar Production
Manager
House: 45, Road: 6,
Kazipara, Mirpur,
Dhaka.
01920646176
8 Md. Sahadat Shikdar DeliveryManager
79/13, Shantinagar,Dhaka,
01723220768
9 Md. Rafiqul Islam Delivery
Manager
House: 258, Road:2,
Shaorapara, Mirpur,
Dhaka.
01710178597
Prepared Date:
07 October, 2010.
Prepared By:
Partners of the business.
Number of Copy: 20
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Executive Summary
Alpona - a brand of M/s.Alpona Label - is going to capture label market both in home and
abroad by satisfying target customers, providing the best quality product in just time. In
garments industry label is a complementary product used in garments products having huge
demand with oligopolistic competition. For this we are going to form a business on
partnership basis to be a branded business partner by helping garments industry. Our
projected location is Ashulia, Savar, Dhaka.
At first our employed sales representatives will get order directly or presenting sample
designs of label from customers (RMG industry, apparel industry). Then the representatives
send order to the production department. The production department approves label from
customer through representatives, in this stage the representatives will finalize all terms and
conditions. After producing the labels, the delivery department will delivery the labels to the
customers. The uniqueness or USP (Unique Selling Proposition) of our business is delivery
product just-in-time.
To conduct our business we need 50 lakh taka in which, we (all the partners) will contribute
40% of total investment and rest of the investment (60%) from bank loan. The debt-equity
ratio is 60:40. Initially, the loan amount will be used to purchase machinery, furniture,
computer, office security, raw materials and to bear establish expenses.The 1
stthree-year projected sales is about TK 7 crore 80 lakh, 10 crore 50 lakh, and 12 crore
15 lakh respectively when net income will be TK 1 crore 1 lakh, 1 crore 91 lakh, and 2 crore
3 lakh. The break even sales is 3 crore 25 lakh taka when label volume will be 2.5 crore for
1st year. Every year we will repay 8,73,853 TK including interest for bank loan.
To achieve these financial goals, we will emphasize on marketing. Our marketing strategy
includes database marketing, promotional sales strategy, providing sales incentives to
employees as well as sales representatives. Occasionally we also give some incentives to our
customers. To increase sales we will emphasis on networking, customer relationship
management, attractive pricing, advertising campaigns and customer service. We will
implement our marketing strategy in-house responsibility.
To manage above all activities properly, we have a good management team having a GM
who is an expert in label business. We have 1 Assistant GM and 7 managers for production,
marketing, accounting & finance, and delivery department. These 8 managers are our
business partner. We have total 31 employees including GM, sales representative, graphic
designer, production supervisor, deliveryman and workers for 3-shift work hour.
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Table of Contents
Chapter Topics Page No.
Title Page 1Executive Summary 2
1.0 The Organizational Plan 4-14
1.1 Description Of The Business 4
1.2 Product 7
1.3 Intellectual Property 7
1.4 Location 7
1.5 Legal Structure 7
1.6 Management 8
1.7 Personnel 121.8 Accounting & Legal 13
1.9 Insurance 14
1.10 Security 14
2.0 The Marketing Plan 15-18
2.1 Overview And Goals Of Marketing Plan 15
2.2 Market Analysis 15
2.3 Marketing Strategy 17
2.4 Customer Service 18
2.5 Implementation Of Marketing Plan 18
3.0 The Financial Plan 19-23
3.1 Summary Of Financial Need 19
3.2 Loan Fund Dispersal Statement 19
3.3 Pro Forma Cash Flow Statement 20
3.4 Three Year Income Projection 21
3.5 Projected Balance Sheet 22
3.6 Break-Even Analysis 23
4.0 Supporting Documents
A Personal Resume A1-A9
B Owners Financial Statement B1-B8
C Rental Agreement C1
D Partnership Agreement D1-D3
E Trade License, Trade Mark Registration I,II
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1.1Description of the Business:In garments industry labeling is an important part to make the final product. There are ample
opportunities to enter in to the textile label market. Many companies exist to provide these
products to this industry, but most of them are often fail to provide quality product or just-in-
time supply.
As entrepreneur, we have found these opportunities to enter in to this market and to become
successful. In this sector there is oligopolistic competition. There is both local and
international demand for label. As a result, we have also the opportunities to expand our
business both domestic and international market.
By observing these opportunities, we are going to start a business which is committed to
provide the product better than the competitions do.
Mission:
Our businesss mission is divided into two parts as Short term and Long term:
Short term Mission:
1. To penetrate local market2. To increase market share3. To help garments industry
Long term Mission:
1. To be a leader in local label market2. To expand our business globally3. To manufacture all types of labels.4. To be a branded business partner.
1. The Organizational Plan
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Business Model:
At first our employed sales representatives will get order directly or presenting sample
designs of label from customers (RMG industry, apparel industry). Then the representatives
send order to the production department; the production department takes final design of
label from our designer. The production department approves label from customer through
representatives, in this stage the representatives will finalize all terms and conditions
including pricing, volume, date of delivery and other necessary information and inform these
to the production department. Now production department purchase inventory on the basis of
customers order from suppliers. In this stage, the processing unit produce/manufactures label.Here the cutting unit will cut the labels. After packing the labels, the delivery department will
delivery the labels to the customers through delivery man or by the customers own self
predefined while contact finalized.
The uniqueness or USP (Unique Selling Proposition) of our business is delivery product
just-in-time. Our management is different from the competitors management because a
little number of businesses has organized management. On the other hand, we have
emphasized on sales strategy. Our representatives will communicate with customers regularly
to build a strategic relationship, one time this strategic relationship will be profitable
relationship and we will be successful.
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Strategy:
To establish and to penetrate market, our pricing will be attractive than competitorsprice.
To control quality of our product, we will emphasis on quality proved raw materials. To expand our business, we will setup new production unit every year. To increase sales volume, we will offer incentives to customers and employees.
Strategic Relationships:
To maintain strategic relationship with our business partners including suppliers, transporters
we will communicate with them regularly and occasionally we will gift diary, calendars and
so on.
SWOT Analysis
Now a days demand of readymade garments is increasing both in national and international
market. Every garments product need to be labeled to focus or highlight their uniqueness.
Because of lacking of the quality labeling, the garments products fail to differentiate their
uniqueness in both national and international markets. We are providing better quality
labeling facility for the garments products.
Strength
Best quality label Just-in-time supply Reasonable price
Weakness
Lack of experience Lack of finance
Opportunity
Expandable garment &apparel market
Up coming ICC worldcup
Threat
Collecting quality rawmaterials
Instability of garmentsindustry.
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1.2 Product
Product Category: Textile Label
M/s. Alpona Label is a garments label manufacturing firm. At first we will design some
label by our graphic designer. Then we will go to garments manufacturers and show themthese labels. Then we will take orders according to the choice of garments product
manufactures. We will deliver the labels within contract time. Because our main focus will be
onbest quality, and in just time delivery.
In manufacturing process, we will collect raw materials from importers of our country who
imports raw materials mainly from china. Cotton yarn, synthetic yarn, different types of
paper, different types of color and chemical are the raw materials of our product. After
collecting raw materials, we will produce the quality labels in our processing unit. We always
preserve minimum amount (safety stock) of raw materials for Just-in-time delivery.
1.3 Intellectual Property
M/s. Alpona labels trade mark is
approved by trade mark registrar.
1.4 Location
Projected location of our firm is at Savar.
Plot-36, Road- M. Bir Uttam Road, Ashulia, Savar, Dhaka.
Projected cost associated with the location is-
Security of factory and office rent-1,20,000 TK. Monthly rent- 40,000 TK. Monthly utility cost- 12,000 TK.
Note: Rental Agreement is included in Supporting Documents Part.
1.5 Legal Structure
Our business firms is formed based on partnership agreement. Partnership agreement will
help us to solve any internal problems. This legal agreement will help us to run our business
smoothly.
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1.6 Management
The organogram of our business is shown as below:
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Responsibilities and the Abilities of the management members
General Manager: Md. Bhuiyan Al Mahiuddin
Responsibilities:1. Manage firms entire department efficiently.2. Challenged to make efficient use of resources.3. Challenged with getting things done through people.4. Use of all the tools of management that any other manager uses.5. Developing the business' mission and objectives and determining how they will be
accomplished.
6. Establishing the internal organizational structure of the organization.7. filling and keeping filled with qualified people all positions in the business8. Influencing people's behavior through motivation, communication, group dynamics,
leadership and discipline.
Projected Salary: 30,000 taka
Assistant General Manager: Md. Saiful Islam Masud
Responsibilities :
1. Establishing performance standards based on the firm's objectives, measuring andreporting actual performance, comparing the two, and taking corrective or preventive
action as necessary.
2. Helping the general manager in the ongoing process of developing the business'mission and objectives and determining how they will be accomplished.
3. Distribute responsibility and authority to job holders in this function of management.4. Taking the all responsibility in absence of GM.5. Concerned with scope of the business and what distinguishes this business from
similar businesses.
6. Influencing the behavior of people in the organization depends on the goals to beachieved.
Projected Salary: 10,000 taka
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Marketing Manager (Promotion): Md. Shaiful Hassan
Responsibilities:
1. Development of marketing goals and strategy. 2. Conducting marketing researches and monitoring customer needs. 3. Promotion and advertisement.4. Establishing rules and business concept of how the organization will conduct itself on
the market, what marketing instruments will be used, what goals will be set and what
strategies should be applied to attaining effective advertising campaigns.
5. Developing a market-based business strategy that provides unique value to thecustomers on all services and products of the organization.
Projected Salary: 10,000 taka
Marketing Manager (Sales): Md. Habibur Rahman
Responsibilities:
1. Implementing the marketing goals and strategy.2. Focus on the Customer demands.3. Monitor the Competition to increase sales.4. Create new market.5. Communicate Internally.6. Conducting the advertising campaign based on that research.
Projected Salary: 10,000 taka
Accounting Manager: Mahmuda Akter
Responsibilities:
1. Receipt of money, paying bills, payroll, recording.2. Tracking assets and inventory, and financial reporting.3. Forecasting, budgeting and internal control. Responsible for supervising and
mentoring the accounting staff.
4. Ensure timely and accurate completion of account reconciliations and analyticalreports. Responsible for ensuring the accurate accounting and reporting of labor and
cost standards including variances, inventory and warranty. Managing the Accounts
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Payable and Receivable processes. Assist with quarterly and annual filings by
providing supporting schedules as needed.
5. Assist with the annual overhead budget process including preparation of seniormanagement presentation and variance analysis.
6. Review of department expenditures and the actual to budget comparison. Preparationand distribution of the monthly executive financials including commentary.
7. Assist with special projects including system implementations and initiating variousprocess improvements utilizing Six Sigma tools. Evaluation of Six Sigma baseline
calculations.
Projected salary: 10,000 taka.
Finance Manager: Sabiha Afsari
Responsibilities:
1. Provide strategic financial support for business and operational planning.2. Meet external and internal financial reporting requirements.3. Provide daily financial services functions.4. Proper preparation of the annual budget as well as compliance of regulatory codes is
both important responsibilities of a finance manager.
5. Administering employee expenses and salaries.6. Budget preparation Budget administration.7. Distribution of pass-through funds, Cash flow, Investments.
Projected salary: 10,000 taka.
Production Manager: Nazmun Nahar
Responsibilities:
1. Setting standards and targets for each section of the production process. The quantityand quality of products coming off a production line will be closely monitored. In
businesses focusing on lean production, quality will be monitored by all employees at
every stage of production, rather than at the end as is the case for businesses using a
quality control approach.
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2. Providing the materials, components and equipment required to keep the productionprocess running smoothly.
3. Responsible for stocking all the necessary tools, spares, raw materials and equipmentrequired to service the manufacturing process.
4. Responsible for researching new products or modifications to existing ones,estimating costs for producing in different quantities and by using different methods.
5. Concerned with the manufacture of products.
Projected Salary: 10,000 taka
Product delivery Manager: Md. Sahadat Shikdar and Md. Rafiqul Islam
Responsibilities:
Communicating with the Management, Resources, Project Managers and most
importunately, the Client. The communication should be crisp, clear and unambiguous
without leaving any doubt in the minds of the listener.
1. Focused on solving the clients problems and providing the client with a long lastingsolution to run their business effectively and efficiently.
2. Delivering the product with right time and right place.3. Maintaining better relationship among the channel members.
Projected Salary: 10,000 taka (Per Person)
1.7 Personnel
Our total employee will be 31. Among them
General Manager- 1 Plant Engineer- 1 Graphics designer-1 Sales representative-5 Delivery man-1 Production Supervisor-3 Production worker- 18 Office assistance-1
http://www.thetimes100.co.uk/glossary--service-4455.phphttp://www.thetimes100.co.uk/glossary--costs-3466.phphttp://www.thetimes100.co.uk/glossary--costs-3466.phphttp://www.thetimes100.co.uk/glossary--service-4455.php -
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Qualification required for the Personnel:
Engineer: M. Sc in mechanical engineering from reputed govt. engineering university.
Designer: MFA from a reputed university.Sales representative: Bachelor degree from any discipline having good communications and
selling skill.
Delivery man: B. Com with hard working mentality.
Office assistant: HSC
Production supervisor: HSC and having good quality on controlling power.
Production workers: Having 2/3 years experience in related work.
Salaries:
Designation Number of
employee
Working Hours Salary per
Month
Total
Salary
Plant Engineer 1 Office hour but
responsible when
problem occur
15000 15000
Graphics designer 1 Office hour 10000 10000
Sales representative 5 Office hour 6000 30000
Delivery man 1 Office hour 5000 5000
Production Supervisor 3 Any of three shift
production hours
5000 15000
Production worker 18 Any of three shift
production hours
4000 72000
Office assistance 1 Office hour 4000 4000
If we will increase our production then some additional workers may be added.
1.8 Accounting & Legal
For daily accounting system we will follow standard accounting system. Our accounting and
financial managers will be responsible for periodic financial statement analysis.
There will be no attorney for our business but if need, we will employ on contract basis.
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1.9 Insurance
We will carry property insurance for our machinery. The insurance cost per year is 36,000 tk.
The insurance carrier is Dhaka Insurance Ltd.
1.10 Security
In terms of inventory control our employed supervisor will be responsible. For this purpose
there will be no cost.
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2.1Overview and Goals of Marketing StrategyTextile label is a complementary product. So, our market is basically business market.
Specially, our market/customers include Readymade Garments (RMG) industry, textile,
apparel, knitwear, as well as tailors who need textile labels. Oligopolistic competition is
underlined in our business or target market. We will get order from our customer to produce
textile label. After producing in time we will distribute to them or others predefined by two
parties. Our products pricing strategy will be cost plus. In this case price will be determined
by adding all the costs with certain percent of profit on cost. As a part of our promotional
activities we will give rebates to the customers and commission to the sales representatives.
We will implement our marketing strategy in-house responsibility. For these activities we
have separate department known as Marketing Department.
The marketing goals are:
1. To establish a customer base of 20 percent of the defined target market in the firstyear.
2. To generate 6 crores labels in sales for the first year.3. To increase sales by 25 percent annually for the first year.4. To expand at least two new production units by the end of the first three years.5. To provide the best quality product in just time.
2.2 Market Analysis
Market analysis includes target market, competition, market trends and market research.
Target Market:The target market of our business is made up of business customer specially who make
garments products like T shirt, sports items, knit wear, woven sweaters and other cloths.
We have segmented our product market based on both demographically and geographically.
So the target market includes RMG industry, tailors industry, sports items manufacturing
industry and other clothing industry in Bangladesh.
Competition:
Oligopolistic competition is underlined in our business or target market. The major
competitors of us are Maruf International, S.M Label and New Textile Label.
2. Marketing Plan
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Their strengths and weakness are assessed as below:
Competitor 1
Maruf International
Competitor 2
S. M. Label
Competitor 3
New Textile Label
Product andservice
strategies
Quality product within
time
Quality product in
lower cost
Quality product
Quality product
Pricing
strategies
Cost based Cost based Cost based
Distribution
strategies
Both own delivery man
and by customer
Both own delivery
man and by
customer
Both own delivery
man and by customer
Promotion
strategies
Commission to the
representative or sales
promotion
Commission to
sales promotions
and rebate to
customer
Rebate to the
customer
Strengths
weakness
Large market share Lower cost Production efficiency
Limited sales force Unable to deliver
timely
Limited sales force
Market Trends /Industry Analysis:
Textile label is a complementary product. So, our market is basically business market.
Specially, our market/customers include Readymade Garments (RMG) industry, textile,
apparel, knitwear, as well as tailors who need textile labels.
Though garments industry is the biggest industry in our country having about 5000 garments
which are exporting a lot of product every year. As they manufacture more products, they
need more label as our market will expand and vise-versa.
On the other hand instability in garments industry also disrupts or has a great affect on our
label market. As a profitable business, now label industry is expanding day by day.
Market Research:
We will collect primary data through observation, experimentation and networking methods.
Secondary data will be collected from government agency and BGMEA, and other related
associations.
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2.3 Marketing strategy:
To increase our sales through getting more orders from customers, we will emphasis on
customer oriented marketing strategy including pricing, proper distribution, database
marketing, sales incentives, advertising and networking. For these purpose we have allocated2% of total investment in first year.
Expected ROI=
=
=202.98%Methods of Sales and Distribution:
We will get order from our customer to produce textile label. After producing in time we will
distribute to them or others predefined by two parties.
Packaging:
For our product packaging is not so important. Then we will try to pack our product, so that
customers can carry their product easily.
Pricing:
Our products pricing strategy will be cost plus. In this case price will be determined by
adding all the costs with certain percent of profit on cost. Cost includes production cost, cost
of goods sold and operating expenses.
The Formula is
Price (Per Label): Cost per Label + 12% profit on cost
= (1.14 + 0.16) TK
= 1.30 TK per Label
We will try to keep our products price lower than others products.
Branding:
For better banding in the market we will emphasize on quality control, better service with
minimum cost in just time.
Database Marketing:
At the beginning we will enlist or make database of the customers of our targeted market.
Then our representatives will communicate with them to get order.
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Sales Strategy:
We will follow direct sales. Following database marketing we will keep good connection
with our customers. For this purpose we will recruit some representatives to communicate
with our customers and get orders. We will design the tag and taking improvement from
customers. Then we will produce and supply to the customer within just time.
Sales Incentives/Promotions:
As a part of our promotional activities we will give rebates to the customers and commission
to the sales representatives.
Advertising strategies:
For advertising we will follow traditional strategies like advertisement on trade magazine. In
addition we will take long term sponsorship of sports teams in different competitions.
Public Relation:
We will participate in different trade fair, trade show .So that customers know us.
Networking:
Networking is very important for a business to be successful within a short time. Within a
few months of starting in our industry we will try to get membership in our industry related
association. Within a few years we will try to achieve a leadership position.
2.4 Customer service:
We will be very serious in customer service. Our sales representative will communicate with
customers on a regular basis and they also will note down customers suggestion if any.
2.5 Implementation of Marketing Strategy:
We will implement our marketing strategy in-house responsibility. For these activities we
have separate department known as Marketing Department that is responsible for all
marketing activities and our two partners will act as marketing manager. For this some
persons will be employed under a marketing manager. The Marketing manager will make all
the marketing related decisions.
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3.1 Summary of Financial Needs
Money is the blood flow of a business. So, to run our business, we need a huge amount of
money. But we (all the partners) will not able to finance all amount of money. We are
applying for financing to bye machinery, furniture, office equipment, computer, raw
materials and to pay office and factory security.
We need 50 lakh taka, in which loan amount is 30 lakh and partners contribution is 20 lakh
taka.
So, the debt-equity ratio is 60:40.
3.2 Loan Disbursement
For the following purposes the loan fund will be utilized:
Particulars TK.
Machinery
Office equipment
Computer
Office/factory security
Raw material & Establish Expense
20,00,000
1,40,000
2,40,000
1,20,000
5,00,000
Total TK. 30,00,000
Debt,60%
Equity,40%
Graphical Presentation of
Debt-Equity Ratio
3. Financial Documents
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3.3 Cash Flow Statement (projected)
M/s. Alpona Label
Pro Forma Cash Flow Statement
Particulars 2011 2012 2013
Receipt:
Sales
Disbursements:
Equipment purchase
Inventory
Salaries
RentUtilities
Advertising
Insurance
Office expense
Commission
Travel expense
Transportation
Office security
Interest & tax
Loan paid
Total disbursement
Cash inflow
Beginning balance
Ending Balance
73000000
2380000
54000000
2964000
480000175000
100000
36000
60000
60000
20000
25000
120000
3793000
453853
6,44,66,853
8533147
5000000
1,35,33,147
100000000
-------
68000000
2964000
480000170000
120000
36000
55000
70000
25000
30000
120000
6737846
517392
7,93,25,238
20674762
13533147
3,42,07,909
118500000
-------
82000000
2964000
480000165000
130000
36000
55000
80000
25000
35000
120000
7052270
589827
9,37,32,097
24767903
34207909
5,89,75,812
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3.4 Three-Year Income Projection:
M/s. Alpona Label
Pro Forma Income Statement
Particulars 2011 2012 2013Sales
Less: Cost of goods sold
Gross profit
Operating expenses
Salaries
Rent
Utilities
Advertising
Transportation
Insurance
Depreciation
Office expense
Bad debt expense
Commission
Travel expense
Total Operating Expense
Earnings Before Interest &Tax
(-) Interest expense
Earnings Before Tax
(-) Tax
Net Income
7,80,00,000
(6,00,00,000)
1,80,00,000
29,64,000
4,80,000
1,75,000
1,00,000
25,000
36,000
1,58,000
60,000
10,000
60,000
20,000
(40,88,000)
1,39,12,000
(4,20,000)
1,34,92,000
(33,73,000)
1,01,19,000
10,50,00,000
(7,50,00,000)
3,00,00,000
29,64,000
4,80,000
1,70,000
1,20,000
30,000
36,000
1,58,000
55,000
10,000
70,000
25,000
(41,181000)
2,58,82,000
(3,56,461)
2,55,25,539
(63,81,385)
1,91,44,154
12,15,00,000
(9,00,00,000)
3,15,00,000
29,64,000
4,80,000
1,65,000
1,30,000
35,000
36,000
1,58,000
55,000
10,000
80,000
30,000
(41,43,000)
2,73,57,000
(2,84,026)
2,70,72,974
(67,68,244)
2,03,04,730
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3.5 Balance Sheet (projected)
M/s. Alpona Label
Pro Forma Balance Sheet
Particulars 2011 2012 2013Current Asset
Cash & Bank
Inventory
A/C receivable
Total Current Asset
Fixed Asset
Equipment( machinery, computer,
furniture) 2380000
(-) Depreciation 158000
Office security
Total Fixed Asset
Total Asset
Liabilities & Equities
Current liability
A/c payable
Long-term Liabilities
Loan 3000000
(-) Installment 453853
Total Liabilities
Owners equity
Net income
Total equity
Total Liabilities & Equities
1,35,33,147
50,00,000
1,87,90,000
3,73,23,147
22,22,000
1,20,000
23,42,000
3,96,65,147
2,50,00,000
25,46,147
2,75,46,147
20,00,000
1,01,19,000
1,21,19,000
3,96,65,147
3,42,07,909
60,00,000
3,09,00,000
7,11,07,909
20,64,000
1,20,000
21,84,000
7,32,91,909
4,00,00,000
20,28,755
4,20,28,755
1,21,19,000
1,91,44,154
3,12,63,154
7,32,91,909
5,89,75,812
65,00,000
4,55,05,000
11,09,80,812
19,06,000
1,20,000
20,26,000
11,30,06,812
6,00,00,000
14,38,928
6,14,38,928
3,12,63,154
2,03,04,730
5,15,67,884
11,30,06,812
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23
EXPLORER
3.6 Break-even analysis
Breakeven mean when total revenue is equal to total cost. At this point, there is no profit and
no loss.
Break Even Point:Sales = VC + FC + Profit
1.30Q = 1.14Q + 40,00,000 + 0
0.16Q = 40,00,000
Q = 2.5 crore labels.
Break even sales price:
= (1.30 * 2.5 Crore Label)
= 3.25 crore TK.
Loan Amortization
Step: 01
PVA=
30,00,000 =
=
=TK. 8,73,853.06 (approx) per year
Step: 02
Separation of interest and principal amount.
1 2 3 4= (3 5= (2-4) 6= (3-5)
End of
the year
Loan
installment
Loan at the
beginning
Interest
payment
Principal
amount
Loan outstanding
at the end of the
year
1 873853 3000000 420000 453853 2546147
2 873853 2546147 356461 517392 2028755
3 873853 2028755 284026 589827 1438755
4 873853 1438928 201450 672403 766525
5 873853 766525 107314 766525 0
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24
Risk Assessment:
In our country instability in RMG industry is a general incident. This instability may be
disrupts our business operation properly through reducing demand of label. The other risks
are-1. Price Risk: Price variation due to changing customer preferences, supply condition
and general business condition.
2. Demand Risk: Demand for label may not be as high as we expected.3. Economical risk: The plan is based on the current market trends. Change in
economic pattern may include substantial change in the plan.
4. Estimation Risk: The financial amount may be overestimate and underestimate.