Feasibility Study

Project Feasibility Study on CycleCourierservice

Supervised By:Ms. Jafrin SultanaAssistant ProfessorDept. of Business AdministrationDhaka City College

Submitted By:Group: Pathshala (06)Section: A 11th Batch BBAGroup Members NameId No.

Md. Ariful Haque021

Mst. Tahmina Akter026

Wahid Hossain030

Shams Zerin Chowdhury073

Shayla Sultana367

Date of Submission: May 13, 2013

Letter of TransmittalMay 6, 2013Ms. Jafrin SultanaAssistant ProfessorDepartment of Business AdministrationDhaka City CollegeDhanmondi, Dhaka.

Subject: Submission of Feasibility Study on CycleCourierservice

Dear Madam,Weve pleasure in submitting the feasibility study on CycleCourierservice, as required by you. This report contains the managerial aspects, market and demand analysis, technical analysis, financial aspects, economic and ecological analysis of the cycle courier service in Dhaka city.As a green business idea, weve choose cycle courier service. We think this business will provide more customize service profitably for customer and contribute to the welfare of society. We hope you find this report satisfactory.Respectfully submitted

Md. Ariful HaqueOn behalf of Group Pathshala.

Acknowledgement:

Thanks to Almighty Allah, weve successfully completed the business plan on Cycle Courier Service. A special note of thanks to Ms. Jafrin Sultana, Assistant Professor of Dhaka City College and Md. Shahinur Sobhan, Assistant Professor of Dhaka City College, for their expert guideline. A business report cant be done only single effort, we are cordially thanking to those people who are not in focus but give enormous effort i.e. our family member by helping us.

We would like to thanks Quazi Enterprise to give enough time and patience to make this report softcopy into hardcopy.

Table of ContentsExecutive Summary8Objective of the Report9Methodology9Primary Data9Secondary Data9Mission11Vision11Objective11Business Summary12Firm Ownership12Management Structure13Personnel Plan14Market and Demand Analysis16Market Analysis16Market Analysis17Trend Analysis17Elasticity of Demand19Market Growth20Market Need20Service Business, Competitor Analysis21Positioning/Competitive Advantage21Market Mix21Sales Strategy22SWOT Analysis23Strengths23Weaknesses23Opportunities23Threats23Service Offering23Keys to Success24Critical Issues25Technology27Technical Arrangement27Location and Site27Start-up Summary29Start-up30Start-up Funding30Break-even Analysis31Break-even Analysis31Net Profit Monthly32Payback Period (Discounted)33Accounting Rate of Return (ARR)33Projected Profit and Loss34Pro Forma Profit and Loss34Pro Forma Cash Flow35Pro Forma Balance Sheet36Economic Analysis39Ecological Analysis39

Introductory Part

Executive Summary

CycleCourierservice is a bicycle based courier service in Dhaka metropolitan city, catering to financial institution, Online shop, Industries and Professional & Household customers. The CycleCourierservice can transport documents as well as parcels to clients. Online shop and financial institution are the primary group of customers. As a green business CycleCourierservice will satisfy its customer and its an eco friendly business project so it can be brought revolutionary change in courier service industry.The CycleCourierservice will offer reliability and industry insight to corporate, customers, enabling it to provide superior service relative to the current service providers. This will allow the company to rapidly gain market share. Profitability will be reached by monthnine, and revenuefor year three will be very comfortable.

Objective of the ReportThe objectives of the report are the following1. To gather knowledge about business report writing2. To learn how to maintain a project on green business idea3. To gather knowledge practically on report writing by group work.4. To explore the information and idea to get the best idea and work on it.5. Introducing with business report writing criteria and content

Methodology

Primary DataPrimary data is collected by oral conversation with different retail shop which is connected with relevant sector.

Secondary DataThe secondary data is collected from different organizations website, internet, search engine etc. the followings are the secondary source of data.1. Webpages of different courier service2. Internet3. Books4. Articles5. Search engine

Management Aspects

MissionCycleCourierservices mission is to provide online b2c and c2c shop and Dhaka metropolitan corporate house with an environmentally friendly, expedient delivery service. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall in to place. Our services will exceed the expectations of our customers.

Vision

Our vision is to spread CycleCourierservice to most of the cities in Bangladesh within 10 years.

Objective

The objectives of the report include:1. To provide courier service with affordable price.2. Providing fast delivery with priority basis.3. Achieving target level of delivery.4. Customer or clients satisfaction

Business SummaryThe CycleCourierservice is a bicycle courier service that serves the online b2c and c2c firms and corporate house of Dhaka Metropolitan city. The firm offers a document & parcel delivery service for financial institution, corporate house and city dwellers. The firm can offer a scheduled pick up as well as a spontaneous run. Withinnine months the business will be profitable.

Firm OwnershipThe firm will be a partnership firm and registered under section 58, chapter vii, Partnership Act, 1932. The firm owned entirely by Md. Ariful Haque, Tahmina Akter, Wahid Hossain, Shams Zerin & Shayla Sultana. The contractual relationship among partners will be equal partnership i.e. partners contribute and share equally in investment and profit of the firm.

Management Structure

In management structure, the partners are participating without remuneration.

Personnel PlanThe CycleCourierservice will consist of Partners of firm completingHR functions, financial functions, and general business management. The firm will hire a full-time dispatcher and eight bicycle messengers. While bicycle messengers seem to be transient, the training of a new one is relativelyquick and cheap, so if one leaves, he/she can be replaced quickly.

Personnel Plan

Year 1

Network Executive Cum Order Receiver 240,000

Marketing Executive 240,000

Messenger 144,000

For first four years firms payroll plan will be unchanged. Firms will recruit new messengers as per need. The 10 messengers are permanent. And part time messengers will be recruited as per heavy delivery order. The part time messengers will be paid weekly basis. They are paid tk. 60 per hour of work.

Marketing Aspects

Market and Demand Analysis

Market AnalysisThe courier business is related to service business. Now a day the term courier is widely used in business world. Financial institutions, firms, professionals, business persons, households uses courier to send their need documents, gift, samples, passports, medicine etc with in very short time.Bicycle courier service will open new experiences of every business person, professionals, institutions and assorted customer to send their parcel within very short time and very cheap rate.Bicycle courier service primarily serving the financial institution and online based business of all over Dhaka city. This is a particularly attractive segment because financial institutions and online shopping have a constant need for delivery services. Most institutions have a constant need for delivery services to one branch to another branch and one institution to another institution of financial institutions and b2c and c2c online shopping business. Most institutions and online shopping business are sending things constantly during the day. Bicycle courier will be able to set-up contracts with organizations and online business to provide multiple scheduled pick-ups each day.The Bicycle Courier service also serves non-financial institutes customers who are in need of a courier service. In addition to document, the Bicycle courier can transport small parcels, gift, samples, passports, medicine etc. within the Dhaka city firstly.Bicycle Courier will serve three distinct groups. The first group of customer: financial institutions. This will be the group that is targeted primarily. Financial institutions are constantly in need of document delivery to branch to branch. It is may be to clients, other financial institutions, Bangladesh Bank or to corporate branch. On the other hand the online shopping business also need to delivery their product within very short time with low price and reliably. This is the regularity of needed delivery is the reason that financial institution and online shopping business are targeted. One a financial institution and an online shopping company have become satisfied customer, it is likely that they will begin to increase their delivery needs. This then become a steady, high frequency, long term customer. Financial institutions and online shopping business have constant delivery activity; many institutions require pick-ups through the day and require dependability, which is one of the competitive advantages of Bicycle Courier service. Another advantage is to deliver the documents, gift, samples, passports, medicine etc. within very short time with low price. The other groups are assorted deliveries needed in the city. This could come from a wide variety of business that requires delivery within the city.

Market Analysis

Potential customersGrowthYear-1Year-2Year-3Year-4Year-5

Financial institutions10%2100023100254102795130746

Online shopping 15%2475028463327323764243288

Assorted customers6%2175023055244382590427458

Total -75000746188258091497101492

Trend AnalysisYearYear-1Year-2Year-3Year-4Year-5

Demand75000746188258091497101492

The R-squared value indicates how closely trend line follows data; the closer its value is to 1, the closer it follows data. Here, R = 0.924 so it is much closer to 1.The Linear Equation, y = 6986.x + 64079 shows the a= 64079 and b= 6986.

Elasticity of DemandFrom 2005, the document delivery market in Dhaka alone achieved million of revenue. In Dhaka city there are situated the head office of almost every business and financial organizations there need to delivery important document to one branch to another branch. So the demand of CycleCourierservice will gradually increase constantly for the online shopping business now a day it become most popular to the customers. It saves time and cost. For the reason the targeted market will expand in very future. Online c2c shopping site faces problems of delivery. They feel insecurity to collect the purchased product. B2b types online shopping business also faces problem to deliver the item sold in short time. Many buying house also send their samples to their prospected customers. CycleCourierservice is here for solving those types of problems. Provides all the documents, parcels, gifts, and online shopping delivery services in the Dhaka city area with very short time relatively low price with full of reliability. Probable demand estimation chart is for five financial year of CycleCourierservice. Y axis shows the delivering every parcel delivery in a year.

Figure: Probable Demand Estimation

Market GrowthCycleCourierservice is target basically financial institutions and online shopping firms and other assorted business the market must grow in significantly. The market may grow 10% for financial institutions, 15% for online shopping and 6% for all other business. Since 2005 the courier service is increasing day by day.

Figure: Market Growth

Market NeedCycleCourierservice is providing its customers with a fast, reliable document, gift, samples, passports, and medicine etc. delivery service throughout the whole Dhaka city area. CycleCourierservice seeks to fulfill the following benefits that are important to satisfy customers: Professionalism:While the delivery service does not inherently represent the firm, the firm will not use a service that is not professional to avoid any type of "halo effect" where the actions of the delivery service are interpreted to be indicative of the firm itself. Expedited Service:Financial organizations conduct business within a set of closely monitored by corporate branch and Bangladesh Bank.The online business firms also delivery their product with in very short time for developing customer belief and satisfaction. The deliveries must always be made on time for both firms. This not a concern for CycleCourierservice because they utilize a redundant backup system, ensuring prompt delivery.

Service Business, Competitor AnalysisThere are approximately 20 different delivery servicesin the Dhaka city area, they provide courier or messenger services. They use cars as the means of transportation. In general, the bicycle messengers are less expensive because they have lower overhead. In the heart of Dhaka city, the bicycle messengers can be as fast as or faster than the car-based courier services because of all the automobile traffic.

There are five different companies that target financial organizations and online shopping industries by catering to their special needs. All of these are car-based services.

In according to other, all other courier service company there may face the problems of traffic jam, threat of political violence. For these reason there faces insecurity of delivering the important documents timely and delivering online shopping products within very short time. For that reason the organizational works may stop for a little time which directly affects the total economic development of a country. On the other hand CycleCourierservice low cost, convenience and reliable to all parties because it must registered under the post office (amendment) Act 2010.

Positioning/Competitive AdvantageCycleCourierservice will position them as a professional, reliable delivering service for the Dhaka. Financial institutions and online shopping business require a delivery service as it is more efficient to have documents delivered to other branch or corporate office than for them to make the delivery themselves. This positioning will be achieved by leveraging CycleCourierservices competitive edges, reliability and industry insight:

Reliability is a characteristic that is very important to courier service. The target market requires reliable deliveries. The delivery of financial documents is critical. CycleCourierservice wills to achieve reliability through a redundant backup system that always provides an alternative method of delivery if the specific bicycle messenger encounters difficulty. By having a back-up system, CycleCourierservice ensures that even if the primary messenger fails, there is a backup ready to complete the delivery. The second competitive advantage is relevant and convenience. It is a true advantage for CycleCourierservice. The low price and delivering with very short time the necessary document, parcel, gift and online products delivery is another competitive advantage for CycleCourierservice.

Market MixCycleCourierservice marketing mix is comprised of the following approaches to pricing, distribution, advertising and promotion, and customer service. Pricing:The pricing model will be flexible; it can be either a par delivery charge or a monthly subscription based on the number of pickups during the time period. Distribution:CycleCourierservice will service the downtown Dhaka community. Advertising and Promotion:A multi-faceted campaign will be used to accomplish the stated marketing objectives. Customer Service:CycleCourierservice recognizes that superior customer service is a necessary characteristic in order to gain market penetration.

Sales StrategyCycleCourierservice recognizes that it is difficult to break into many financial and online shopping businesses and displace their current service provider and will offer a 20% discount for a months worth of services. While this is a bit of a hit in terms of profitability, it is only a short-term concern. The long-term gain is securing a repeat customer.

In addition to this economic incentive, The CycleCourierservice will employ the marketing persons powers of persuasion when they are speaking with prospective clients and firms. Marketing force will directly targetthe company's reliability andfool-proof back-up systems.

SWOT AnalysisThe following SWOT analysis captures the key strengths and weaknesses within the CycleCourierservice and describes the opportunities and threatsfacing outside of the CycleCourierservice.Strengths Unmatched industry insight. Benchmarked training programs ensuring professionalism and efficiency. The use of fast, eco-friendly delivery vehicles (bicycles). Frequent move in any time, any reluctant condition of the country. Traffic jam no more hamper in any transferring important documents, gift, parcel, passport, medicine or online shopping delivery. There is no check point for bicycle rider.Weaknesses The lack of brand image, a factor of being a start-up. The struggle to convince financial institutions, online shopping and other assorted business to ditch their current service provider in favor of CycleCourierservice. The ability to balance time devoted to operations versus business development.

Opportunities The continual need for document delivery by CycleCourierservice. The increasingly developed infrastructure for bicycles. Huge turnover may contribute to economical development of a country.

Threats High turnover within the messenger industry. Covering only the Dhaka city area. Lack of trust an important factor of being a start-up. Electronic filing. Technology use.

Service Offering CycleCourierservice will provide a bicycle messenger service that targets basically financial institutions and online shopping business. The service can be used to serve by CycleCourierservice. For financial institutions to transport documents to a client or other branches of same institutions as well as to other financial organization. In addition to responding to immediate calls for delivery, CycleCourierservice will set up a payment basis with financial organization for a regular pick up every day to deliver documents and parcels. Although CycleCourierservice will target to delivery financial and online shopping service. It will accept jobs from other companies, business organizations, professionals and individuals that require a messenger service in Dhaka city. These jobs will be accepted but not solicited. The messenger service offers delivery times ranging from one to three hours only.In addition to document delivery and shopping and sample item delivery, small packages can be delivered. It is rare that a financial institution is in need to deliver packages so this will generally apply to the ancillary business. The maximum dimensions for package deliveryare 12x8x8.

Keys to SuccessThe keys to success are for CycleCourierservice: Reliability Convenience Custom service E-commerce Technology Effective customer relationshipCritical IssuesCycleCourierservice is still in the speculative stages as a start-up organization. The critical issues that it faces are: The need to take a conservative approach to expansion. Expansion must not occur forthe sake of growth in itself, but should occur because the customers will be better served.

Technical Aspects

TechnologyFor CycleCourierservice, often some important technologies are available. We use technology for delivery purpose.1. Messengers use Google map on their smartphones and find the destination.2. Messengers can contact with destination point through their phone.3. Customers can order through online via phone app or web browser. Or they can call our hot number.4. We maintain a website and everything will be monitor by network manager. Customer can chat with network manager throw our chat box.5. Customer can track their delivery through our website. Because messenger will monitor by network manager through GPS On their phone.

Technical ArrangementSatisfactory arrangement must be made to obtain the technical know-how needed for the proposed service process. Our technical arrangement to serve the customer with more efficient and effective way, the following arrangement is ready to delight customer. Collaboration with network support provider to our website and cellular network with teletalk internet and cellular line. The period of collaboration agreement will be ten years. A server will be used to keep the information through online GPS Tracking device is to be used to monitor the delivery

Inputs and UtilityThis project is totally service oriented. Here the main input is human labor. Human skills are needed to run this business. There will be two types of labor input messenger and executive level management skills input.Utilities are obvious factor of any organization. Power will be needed for office equipment, water is needed for refreshment. Here no fuel is required due to green business idea. So we are CO2 free organization. There will be needed very little amount of power because its required for only office purpose not like the production unit. The availability of power is satisfactorily sufficient; we also ensure the power backup system through IPS and UPS.

Service MixService & Delivery ZoneCycle courier collects & deliverers within a parameter of X kilometer. We will Take in any parcel of X kg & within ? X ? X ?cm boundary.For regular collection on monthly basis, please contact our sales for optionprice & service option.Zone A up to X km1. Green Collection before x hour, delivery by the day ends x hr2. Yellow Collection before x hour, delivery by the day ends x hr3. Red Hot! Collection before x hour, delivery by the day ends x hrZone B up to K km4. Green Collection before x hour, delivery by the day ends x hr5. Yellow Collection before x hour, delivery by the day ends x hr6. Red Hot! Collection before x hour, delivery by the day ends x hrZone C up to K km7. Green Collection before x hour, delivery by the day ends x hr8. Yellow Collection before x hour, delivery by the day ends x hr9. Red Hot! Collection before x hour, delivery by the day ends x hrZone D up to K km10. Green Collection before x hour, delivery by the day ends x hr11. Yellow Collection before x hour, delivery by the day ends x hr12. Red Hot! Collection before x hour, delivery by the day ends x hr

Premium RUSH X Zone13. Green Collection before x hour, delivery by the day ends x hr14. Yellow Collection before x hour, delivery by the day ends x hr15. Red Hot! Collection before x hour, delivery by the day ends x hr

Location and SiteThe choice of location and site follows an assessment of demand, size, and input requirements. Location of CycleCourierservice is in Dhaka metropolitan city and site would be four economically important zone of Dhaka i.e. Head office in Motijhil, branch office will be in Mirpur, Dhanmondi and Gulshan. These four Business hubs will be work for delivery the document, parcel or other delivery items. The sites are chosen for our potential market. We emphasize on Mottijhil commercial area. The branch will be interlinked with a server. The server Computer will be monitored by CEO.Proximity to Employee and MarketThe service point or business hub will be proximate to the employee and messengers. Due to its business nature its totally market or customer oriented. The business will be in commercial and business oriented zone of Dhaka Metropolitan city.

Governmental Policies:Its a green business, so government encourages us to operate it without any regulations. The only courier service related regulations are implied.

Machines and EquipmentThere will be following machine and equipment required for the business office branch.1. Server for recording data and maintain the communication to the clients.2. GPS Tracking device3. Bicycle related equipment

Project Charts and LayoutProject charts and layout is very important issue to both service or product oriented business. The following project charts and layout is designed to delivery service.

Financial Aspects

Start-up SummaryCycleCourierservice will incur the following start-up costs: Office furniture including: two desks,two chairs, and two file cabinets. Two computer systems including a printer, IPS & UPS for power cut, CD-RW, and a broadband Internet connection. Two phone lines. Fax machine and copier. Development of a website that allows delivery orders to be placed online and received every five minutes. Legal fees for the incorporation of the firm. Symphony W30 smartphone with teletalk 3G.Ten handsets will be needed initially. Messenger bags with firm logo.

Figure: Start-Up of the Firm

Start-up

RequirementsAmount

Start-up Expenses

Legal 550,000.00

Stationery etc. 10,000.00

Brochures 2,000.00

Consultants 20,000.00

Insurance 0.00

Rent 0.00

Research and development 0.00

Expensed equipment 0.00

Other 18,000.00

Total Start-up Expenses 600,000.00

Start-up Assets

Cash Required 600,000.00

Other Current Assets 0.00

Long-term Assets 3,400,000.00

Total Assets 4,000,000.00

Total Requirements 4,600,000.00

Start-up Funding

Start-up Expenses to Fund 600,000.00

Start-up Assets to Fund 4,000,000.00

Total Funding Required 4,600,000.00

Assets

Non-cash Assets from Start-up 3,400,000.00

Cash Requirements from Start-up 600,000.00

Additional Cash Raised 0.00

Cash Balance on Starting Date 600,000.00

Total Assets 4,000,000.00

Liabilities and Capital

Liabilities:

Current Borrowing 0.00

Long-term Liabilities 2,100,000.00

Accounts Payable (Outstanding Bills) 0.00

Other Current Liabilities (interest-free) 0.00

Total Liabilities 2,100,000.00

Capital:

Planned Investment

Md. Ariful Haque 500,000.00

Shayla Sultana 500,000.00

Shams Zerin 500,000.00

Wahid Hossain 500,000.00

Tahmina Akter 500,000.00

Additional Investment Requirement 0.00

Total Planned Investment 2,500,000.00

Loss at Start-up (Start-up Expenses) 600,000.00

Total Capital 1,900,000.00

Total Capital and Liabilities 4,000,000.00

Total Funding 4,600,000.00

Break-even Analysis

The Break-even Analysis indicates what The CycleCourierservice will need to achieve in monthly revenue to reach their break-even point.

Break-even Analysis

Monthly Revenue Break-even 482,105

Assumptions:

Contribution Margin Ratio95%

Estimated Monthly Fixed Cost 458,000

Total RevenueUnit SalesTotal CostFixed Cost20000 458,000Break- even pointFigure: Break-even Analysis

Net Profit Monthly

Figure: Monthly Net ProfitPayback Period (Discounted)

Calculation of Discounted Payback Period

YearCash FlowPresent Value @10%Cumulative Net Cash Flow after Discounting

0- 4,000,000.00- 4,000,000.00- 4,000,000.00

1 303,666.00 276,060.00- 3,723,940.00

2 477,794.00 394,871.07- 3,329,068.93

3 1,373,352.00 1,031,819.68- 2,297,249.24

4 3,364,191.00 2,297,787.72 538.48

Discounted Payback Period = A +B/CWhere,A= Last period with a negative discounted cumulative cash flow;B= Absolute value of discounted cumulative cash flow at the end of the period A;C= Discounted cash flow during the period after A.

Accounting Rate of Return (ARR)Calculation of Accounting Rate of Return

Average/Annual Cash Inflow 1,379,750.75

Annual Depriciation 300,000.00

Average Accounting Income 1,079,750.75

Initial Investment 4,000,000.00

Accounting Rate of Return

ARR = 27%

Projected Profit and LossPro Forma Profit and Loss

Year 1Year 2Year 3Year4

Sales 5,274,813 6,857,257 8,914,434 10,697,321

Direct Cost of Sales 263,741 342,863 445,722 534,866

Other 0 0 0 0

Total Cost of Sales 263,741 342,863 445,722 534,866

Gross Margin 5,011,072 6,514,394 8,468,712 10,162,455

Gross Margin %95%95%95%95%

Expenses

Payroll 3,360,000 3,360,000 3,360,000 3,360,000

Sales and Marketing and Other Expenses 600,000 600,000 900,000 990,000

Depreciation 300,000 300,000 300,000 300,000

Cellular service 36,000 37,800 43,200 43,200

Utilities 180,000 190,800 194,400 198,288

Insurance 60,000 72,000 78,000 101,400

Rent 960,000 979,200 1,028,160 1,130,976

Wage of Part time Messenger 96,000 360,000 1,080,000 1,188,000

Total Operating Expenses 5,592,000 5,899,800 6,983,760 7,311,864

Profit Before Interest and Taxes -580,928 614,594 1,484,952 2,850,591

Interest Expense 252,000 226,800 201,600 176,400

Taxes Incurred 0 0 0 0

Net Profit -883,328 387,794 1,283,352 2,674,191

Net Profit/Sales-16.75%5.66%14.40%25.00%

Figure: Projected Profit and LossPro Forma Cash Flow

Year 1Year 2Year 3Year4

Cash Received

Cash from Operations

Cash Sales 4,219,850 5,485,806 6,240,104 8,557,857

Cash from Receivables 894,225 1,371,451 2,674,330 2,139,464

Subtotal Cash from Operations 5,114,075 6,857,257 8,914,434 10,697,321

Additional Cash Received

Sales Tax, VAT, HST/GST Received 0 0 0 0

New Current Borrowing 0 0 0 0

New Other Liabilities (interest-free) 0 0 0 0

New Long-term Liabilities 0 0 0 0

Sales of Other Current Assets 0 0 0 0

Sales of Long-term Assets 0 0 0 0

New Investment Received 0 0 0 0

Subtotal Cash Received 5,114,075 6,857,257 8,914,434 10,697,321

ExpendituresYear 1Year 2Year 3Year4

Expenditures from Operations

Cash Spending 263,741 342,863 445,722 534,866

Bill Payments 4,944,000 5,826,600 6,885,360 7,188,264

Subtotal Spent on Operations 5,207,741 6,169,463 7,331,082 7,723,130

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out 0 0 0 0

Principal Repayment of Current Borrowing 0 0 0 0

Other Liabilities Principal Repayment 0 0 0 0

Long-term Liabilities Principal Repayment 210,000 210,000 210,000 210,000

Purchase Other Current Assets 0 0 0 0

Purchase Long-term Assets 0 0 0 0

Dividends 0 0 0 0

Subtotal Cash Spent 5,417,741 6,379,463 7,541,082 7,933,130

Net Cash Flow- 303,666 477,794 1,373,352 2,764,191

Cash Balance 296,334 1,077,794 1,973,352 3,364,191

Pro Forma Balance Sheet

Year 1Year 2Year 3Year4

Assets

Current Assets

Cash 296,334 1,077,794 1,973,352 3,364,191

Accounts Receivable 1,371,451 2,674,330 2,139,464 2,265,040

Other Current Assets 0 0 78,189 108,960

Total Current Assets 1,667,786 3,752,124 4,191,005 5,738,191

Long-term Assets

Long-term Assets 3,400,000 3,100,000 2,800,000 2,500,000

Accumulated Depreciation 300,000 300,000 300,000 300,000

Total Long-term Assets 3,100,000 2,800,000 2,500,000 2,200,000

Total Assets 4,767,786 6,552,124 6,691,005 7,938,191

Liabilities and CapitalYear 1Year 2Year 3Year4

Current Liabilities

Accounts Payable 844,554 1,377,072 1,437,653 1,504,000

Current Borrowing 0 0 0 0

Other Accumulation 416,560 607,258 0 0

Subtotal Current Liabilities 1,261,114 1,984,330 1,437,653 1,504,000

Long-term Liabilities 1,890,000 1,680,000 1,470,000 1,260,000

Total Liabilities 3,151,114 3,664,330 2,907,653 2,764,000

Paid-in Capital 2,500,000 2,500,000 2,500,000 2,500,000

Retained Earnings 0 0 0 0

Earnings -883,328 387,794 1,283,352 2,674,191

Total Capital 1,616,672 2,887,794 3,783,352 5,174,191

Total Liabilities and Capital 4,767,786 6,552,124 6,691,005 7,938,191

Net Worth 767,786 2,552,124 2,691,005 3,938,191

Figure 2: Monthly Cash Flow

Economical and Ecological Aspects

Economic Analysis

As a green business CycleCourierservice is a social revolutionary idea. Bangladesh is well resource of human. So labor intensive industry will shine here for its cheap labor. The CycleCourierservice is totally labor intensive service firm. It takes part in highly social benefit. It creates employment opportunity for the society. The following economic benefits are brought by CycleCourierservice.

The CycleCourierservice impacts on distribution of income in the society It impacts on the level of savings and investment in the society It contributes in self-sufficiency, employment and social order.

Ecological Analysis

In recent years, environmental concerns have assumed a great deal of significance and rightly so. The CycleCourierservice is fully eco-friendly business idea, so it is pollution free and need not concerned with environmental damage. The following aspects are advantage for CycleCourierservice

There is no environmental damage is concerned with it So there is no need for taking any restoration measure

CycleCourierserviceFeasibility Study

37

Prepared by: Pathshala

Sales Forecast

Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12

Sales

Financial Institution 55,620 60,050 72,150 86,500 102,540 124,500 156,030 174,580 203,045 221,350 230,120 236,250

Online B2C and C2C shop 45,201 48,000 52,520 56,500 64,500 82,500 102,530 124,060 150,210 172,640 185,042 186,940

Industries 30,210 42,000 51,200 54,040 61,070 76,090 94,250 105,640 131,020 143,025 152,010 165,040

Professional and Household 25,010 36,000 44,300 48,600 56,400 70,540 86,400 110,500 135,600 156,580 190,450 215,460

Total Sales 156,041 186,050 220,170 245,640 284,510 353,630 439,210 514,780 619,875 693,595 757,622 803,690

Direct Cost of SalesMonth 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12

Financial Institution 2,781 3,003 3,608 4,325 5,127 6,225 7,802 8,729 10,152 11,068 11,506 11,813

Online b2c and c2c shop 2,260 2,400 2,626 2,825 3,225 4,125 5,127 6,203 7,511 8,632 9,252 9,347

Industries 1,511 2,100 2,560 2,702 3,054 3,805 4,713 5,282 6,551 7,151 7,601 8,252

Professional and Household 1,251 1,800 2,215 2,430 2,820 3,527 4,320 5,525 6,780 7,829 9,523 10,773

Subtotal Direct Cost of Sales 7,802 9,303 11,009 12,282 14,226 17,682 21,961 25,739 30,994 34,680 37,881 40,185

Appendix

Personnel Plan

Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12

Network Executive 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000

Marketing Executive 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000

Messenger 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000

Total PeopleNo. of Personnel

Network Executive4 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000

Marketing Executive4 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000

Messenger10 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000

Total Payroll 280,000 280,000 280,000 280,000 280,000 280,000 280,000 280,000 280,000 280,000 280,000 280,000

Pro Forma Profit and Loss

Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12

Sales 156,041 186,050 220,170 245,640 284,510 353,630 439,210 514,780 619,875 693,595 757,622 803,690

Direct Cost of Sales 7,802 9,303 11,009 12,282 14,226 17,682 21,961 25,739 30,994 34,680 37,881 40,185

Other 0 0 0 0 0 0 0 0 0 0 0 0

Total Cost of Sales 7,802 9,303 11,009 12,282 14,226 17,682 21,961 25,739 30,994 34,680 37,881 40,185

Gross Margin 148,239 176,748 209,162 233,358 270,285 335,949 417,250 489,041 588,881 658,915 719,741 763,506

Gross Margin %95.00%95.00%95.00%95.00%95.00%95.00%95.00%95.00%95.00%95.00%95.00%95.00%

Expenses

Payroll 280,000 280,000 280,000 280,000 280,000 280,000 280,000 280,000 280,000 280,000 280,000 280,000

Sales and Marketing and Other Expenses 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000

Depreciation 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000

Cellular service 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000

Utilities 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000

Insurance 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000

Rent 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000

Wage of Part time Messanger 0 0 0 0 0 0 8,000 8,000 16,000 16,000 24,000 24,000

Total Operating Expenses 458,000 458,000 458,000 458,000 458,000 458,000 466,000 466,000 474,000 474,000 482,000 482,000

Profit Before Interest and Taxes -309,761 -281,253 -248,839 -224,642 -187,716 -122,052 -48,751 23,041 114,881 184,915 237,741 281,506

Interest Expense 25,200 25,200 25,200 25,200 25,200 25,200 25,200 25,200 25,200 25,200 25,200 25,200

Taxes Incurred 0 0 0 0 0 0 0 0 0 0 0 0

Net Profit -334,961 -306,453 -274,039 -249,842 -212,916 -147,252 -73,951 -2,159 89,681 159,715 212,541 256,306

Net Profit/Sales-214.66%-164.72%-124.47%-101.71%-74.84%-41.64%-16.84%-0.42%14.47%23.03%28.05%31.89%

Pro Forma Cash Flow

Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12

Cash Received

Cash from Operations

Cash Sales 124,833 148,840 176,136 196,512 227,608 282,904 351,368 411,824 495,900 554,876 606,098 642,952

Cash from Receivables 0 31,208 37,210 44,034 49,128 56,902 70,726 87,842 102,956 123,975 138,719 151,524

Subtotal Cash from Operations 124,833 180,048 213,346 240,546 276,736 339,806 422,094 499,666 598,856 678,851 744,817 794,476

Additional Cash Received

Sales Tax, VAT, HST/GST Received0.00% 0 0 0 0 0 0 0 0 0 0 0 0

New Current Borrowing 0 0 0 0 0 0 0 0 0 0 0 0

New Other Liabilities (interest-free) 0 0 0 0 0 0 0 0 0 0 0 0

New Long-term Liabilities 0 0 0 0 0 0 0 0 0 0 0 0

Sales of Other Current Assets 0 0 0 0 0 0 0 0 0 0 0 0

Sales of Long-term Assets 0 0 0 0 0 0 0 0 0 0 0 0

New Investment Received 0 0 0 0 0 0 0 0 0 0 0 0

Subtotal Cash Received 124,833 180,048 213,346 240,546 276,736 339,806 422,094 499,666 598,856 678,851 744,817 794,476

ExpendituresMonth 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12

Expenditures from Operations

Cash Spending 7,802 9,303 11,009 12,282 14,226 17,682 21,961 25,739 30,994 34,680 37,881 40,185

Bill Payments433,000 433,000 433,000 433,000 433,000 433,000 433,000 433,000 433,000 433,000 433,000 433,000

Subtotal Spent on Operations440,802 442,303 444,009 445,282 447,226 450,682 454,961 458,739 463,994 467,680 470,881 473,185

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out 0 0 0 0 0 0 0 0 0 0 0 0

Principal Repayment of Current Borrowing 0 0 0 0 0 0 0 0 0 0 0 0

Other Liabilities Principal Repayment 0 0 0 0 0 0 0 0 0 0 0 0

Long-term Liabilities Principal Repayment 210,000

Purchase Other Current Assets 0 0 0 0 0 0 0 0 0 0 0 0

Purchase Long-term Assets 0 0 0 0 0 0 0 0 0 45,000 0 0

Dividends 0 0 0 0 0 0 0 0 0 0 0 0

Subtotal Cash Spent 440,802 442,303 444,009 445,282 447,226 450,682 454,961 458,739 463,994 512,680 470,881 683,185

Net Cash Flow -315,969 -262,254 -230,663 -204,736 -170,490 -110,876 -32,867 40,927 134,862 166,171 273,936 111,292

Cash Balance 284,031 337,746 369,338 395,264 429,511 489,125 567,134 640,927 734,862 766,171 873,936 711,292