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Ecommerce, a new horizon for commerce which has opened up by the internet, requires the use of internet for buying, selling and delivering products and services. To left behind all of its economic backwardness, Bangladesh has easily entered to IT world and it is hopeful for us that, ecommerce already made inroads in our society, indeed into our psyche
Contents 1.0 Executive Summary 1.1 Objectives 1.2 Mission 1.3 Keys to Success 2.0 Company Summary 2.1 Start-up Summary 2.2 Company Ownership 3.0 Products & Services 4.0 Market Analysis Summary 4.1 Market Segmentation 4.2 Industry Analysis 4.2.1 Competition and Buying Patterns 5.0 Strategy Implementation Summary 5.1 Competitive Edge 5.2 Marketing Strategy 5.3 Sales Strategy 5.3.1 Sales Forecast 5.4 Milestones 6.0 Web Plan Summary 6.1 Website Marketing Strategy 6.2 Development Requirements 7.0 Management Summary 7.1 Personnel Plan 8.0 Financial Plan 8.1 Pro Forma Financial Statement 8.2 Pro Forma Cash Flow 8.3 Pro Forma Balance Sheet
1.1 Objectives
To make Vitaco an icon brand. To develop an effective, well placed e-commerce site for sales of homeopathic and Naturopathic products. To launch a laser-focused marketing campaign in a controllable and measurable market that will drive customer's toward the company's web site. To create an infrastructure for the fulfillment of Web-based sales.
1.2 Mission
Vitaco 's mission is to provide the finest in natural supplements using the Internet to lower the consumer's cost. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers.
1.3 Keys to Success
Legal fees for the business formation. Office supplies. Web development (by Bit Birds). Telephone line installation. Desk, chair, filing cabinets. Shelving units for inventory storage. Computer system with Microsoft Office, QuickBooks Pro, CD-RW, printer, and a broadband Internet connection.
2.2 Company Ownership Vitaco is a privately held organization. [Md. Miraj Hussain Kaji] Vendor will be the majority owner. The company intends to recruit a sophisticated team of owner board members [Asif Ahmed, Golam Miraj, Zahirul Islam]. The board members will be granted shares of stock to provide an incentive for their performance on the board.
3.0 Products
Vitaco will market and sell private label (manufactured by a company that places the retailer's name on the packaging) Naturopathic homeopathic dietary supplements to individual consumers via the Internet. These products will include ginseng, ginkoba, and various antioxidants. After year one additional product will be offered.
GNC (General Nutritional Companies): This Company is a nationwide specialty retailer of vitamins, minerals, and sports nutrition supplements with over 3,000 stores. National Vitamin Company: NVC manufactures, packages, sells, and distributes private label vitamins and nutritional supplements in drug stores, supermarkets and health food stores.
Mass market retailers Direct Sales organizations. Health Food Stores Mail order catalogs and the Internet.
4.2.1 Competition and Buying Patterns Within the mass market retailer channel, the three main primary vitamin and supplement product categories are national brands, broad-line brands, and private label brands. The national and broad line brands consist of 60% of the domestic market, which the private label brands account for the remaining 40% of the market.
5.2 Marketing Strategy Vitaco is focused on the merging/redefined the Internet marketplace. The long range goal of Vitaco is not only to dominate the Naturopathic and homeopathic supplement market, but to create an icon brand. Initially the company will:
Engage in Web-based marketing for the next year to generate awareness of the company and product information. Engage in outdoor advertising providing general awareness to the public at large and direct individuals to the company's website.
5.3 Sales Strategy Vitaco will process 90% of its sales online through a secure socket layer (SSL), and secure Internet connection. All orders will be charged to Visa, MasterCard, or American Express. 5.3.1 Sales Forecast The first month and a half will be used to develop and ready the site. There will be no sales. From month two on, Vitaco expects a gradual rise in sales.
Business plan completion. Office setup. Website completed. Complete hiring of the initial company personnel.
7.1 Personnel Plan Quack and Bit Birds wart will be on the payroll starting month one and a customer service agent and distribution agent will be hired for month two. One programmer in addition to Stew will be hired in month one.
$0 $0
$1,283 $2,995
$2,068 $4,824
$2,612 $6,096
$3,415 $7,967
$4,843 $11,301
$5,480 $12,786
$6,146 $14,340
$6,811 $15,893
$7,508 $17,519
$8,177 $19,079
$8,477 $19,779
0.00%
70.00%
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$53 $0
($11,703)
($14,458)
($12,629)
($11,357)
($9,486)
($6,152)
($4,667)
($3,113)
($1,560)
$66
$1,626
$2,326
($11,650) $0
($14,405) $0
($12,576) $0
($11,304) $0
($9,433) $0
($6,099) $0
($4,614) $0
($3,060) $0
($1,507) $0
$119 $0
$1,679 $0
$2,379 $0
$0 ($11,703) 0.00%
$0 ($14,458) -337.97%
$0 ($12,629) -183.24%
$0 ($11,357) -130.43%
$0 ($9,486) -83.34%
$0 ($6,152) -38.10%
$0 ($4,667) -25.55%
$0 ($3,113) -15.20%
$0 ($1,560) -6.87%
$0 $66 0.26%
$0 $1,626 5.97%
$0 $2,326 8.23%
$0 $0
$4,278 $4,278
$6,892 $6,892
$8,708 $8,708
$11,382 $11,382
$16,145 $16,145
$18,265 $18,265
$20,485 $20,485
$22,704 $22,704
$25,027 $25,027
$27,256 $27,256
$28,255 $28,255
0.00%
$0
$0
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$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 Month 1
$4,278 Month 2
$6,892 Month 3
$8,708 Month 4
$11,382 Month 5
$16,145 Month 6
$18,265 Month 7
$20,485 Month 8
$22,704 Month 9
$25,027 Month 10
$27,256 Month 11
$28,255 Month 12
$0
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10
Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$65,600 $0
$56,995 $0
$44,555 $0
$32,738 $0
$21,960 $0
$13,303 $0
$8,585 $0
$4,586 $0
$2,169 $0
$1,305 $0
$2,098 $0
$4,424 $0
$7,092 $0
$65,600
$56,995
$44,555
$32,738
$21,960
$13,303
$8,585
$4,586
$2,169
$1,305
$2,098
$4,424
$7,092
$3,200 $0
$3,200 $53
$3,200 $106
$3,200 $159
$3,200 $212
$3,200 $265
$3,200 $318
$3,200 $371
$3,200 $424
$3,200 $477
$3,200 $530
$3,200 $583
$3,200 $636
$3,200 $68,800
$0 $0 $0
$3,045 $0 $0
$5,011 $0 $0
$5,769 $0 $0
$6,295 $0 $0
$7,071 $0 $0
$8,452 $0 $0
$9,067 $0 $0
$9,711 $0 $0
$10,354 $0 $0
$11,028 $0 $0
$11,674 $0 $0
$11,964 $0 $0
$0
$3,045
$5,011
$5,769
$6,295
$7,071
$8,452
$9,067
$9,711
$10,354
$11,028
$11,674
$11,964
$68,800
$57,097
$42,639
$30,010
$18,653
$9,167
$3,015
($1,652)
($4,766)
($6,326)
($6,260)
($4,634)
($2,308)
11
"Spirit of Service"
2012
www. Nohasslereturn.com
Contents 1.0 Executive Summary 1.1 Objectives 1.2 Positioning Statement 1.3 Mission 1.4 Keys to Success 2.0 Company Summary 2.1 Start-up Summary 2.2 Future Financial Predictions 3.0 Services 4.0 Order Process 4.1 Return Policies 4.2 Sequence of Process 5.0 Benefits Summary 5.1 Benefits to Merchants 5.2 Benefits to Consumers 5.3 Benefits to Online Community 6.0 Market Analysis Summary 6.1 Market Segmentation 6.2 Competition 6.2.1 Direct Competitors 6.2.2 Internal Competitors 6.2.3 Channel Competitors 7.0 Strategy and Implementation Summary 7.1 Pricing 7.2 Sales Forecast 8.0 Financial Plan 8.1 Pro Forma Cash Flow 8.2 Break-even Analysis 8.3Projected Profit and Loss 8.4 Projected Balance Sheet
1.0 Executive Summary NoHassleReturn.com is an e-commerce start-up company positioning itself to become the market leader in offering online merchants and consumers a uniform and trouble-free way to return merchandise purchased online. The company offers a business-to-business solution to online merchants of physical, nonperishable products. The company utilizes a consolidation approach in handling all product returns that allow online merchants to instantly save bad sales, restore customer satisfaction and stimulate repeat sales, while offering consumers a convenient, centralized online location to claim returns. By creating a new service category and utilizing the first-mover advantage, NoHassleReturn.com positions itself for rapid growth and gains a strong opportunity to raise entry barriers for possible competition. 1.1 Objectives The ultimate benefit of the program is that it enhances the overall image of the online merchant. Consumers demand not only convenience but a peace of mind. The proposed program offers both, and it will increase the number of online shoppers, thus causing a market expansion for online merchants. 1.2 Positioning Statement NoHassleReturn.com strives to position itself as a strategic partnership between online merchants, Web hosting companies and portals, shipping companies, and online payment agents. 1.3 Keys to Success In order for the company to operate, a number of specific ingredients are needed. Following are things to put in place before the service can be offered. 1. Develop a customer service & customer satisfaction software application that uses order number (of a merchandise item) and merchant's Web address to: 2. Develop successful relationships with online merchants to facilitate exchange of information.
3. Develop strategic alliances with online merchants, shipping companies, and credit card issuers to negotiate reduction or elimination of the shipping costs to consumers on returned merchandise. 4. Design, maintain, and promote a user-friendly website, the corporate trademark, that offers an easy and trouble-free merchandise return procedure for consumers. 1.4 Mission Our mission is to enhance customer service of online merchants, boost their customer retention and increase their sales. We strive to improve the overall image of the online merchant and therefore stimulate growth of online shopping. 2.0 Company Summary The vision behind the company is to provide a return service that is safe, convenient, and easy to use. 2.1 Start-up Summary NoHassleReturn.com is currently looking for early-stage funding and strategic partnerships to execute the program. The table below outlines the start-up expenses.
2.2 Future Financial Predictions The company anticipates starting approaching potential investors in February by this year. The funds will be used to develop the core of the proprietary software program, begin designing the website, test-market the service, and set up corporate headquarters. Also, recruitment of the key sales representatives will begin and major strategic alliances initiated. The second funds will be used to fully cover the software, systems and website development; test-run and fine-tune the operational process; provide necessary staffing; and start the industrial marketing campaign. 3.0 Services By accessing the NoHassleReturn.com website consumers can claim product returns in a quick and trouble-free fashion. NoHassleReturn.com serves as a centralized online location that matches the return policy of a given merchant against the returning item, obtains authorization if required by merchant, and assists consumers in following the return time frames. The company's website also generates and prints a return label to ease the shipping process for consumers. 4.0 Order Process Only two input variables are needed to easily find the merchant and identify a particular merchandise item. The customer's last name is asked for verification purposes only. In case the merchandise was sent as a gift to another person who does not have access to the Internet, a toll-free telephone number will be provided to call in. An operator, with access to the Internet, will use the same exact sequence of onscreen entries and will relay options and procedures to the customer over the phone. 4.1 Return Policies Once the item has been identified, the return policies that apply to that particular item will be retrieved. NoHassleReturn.com will summarize the return policy to
the point of available options. This means that based on the item (regular merchandise, on-sale merchandise, etc.) different return options and procedures may apply. The customer will be given the shortest An option to look up the merchant's entire return procedures will also be given to consumers. A link will be established that brings up the page containing return procedures in a separate window. Once reviewed, the window can simply be closed. 4.2 Sequence of Process The list below describes the sequence of actions taking place during the return process. 1. Consumer claims an item through NoHassleReturn.com. 2. NoHassleReturn.com gains merchant's authorization, if required, and alerts the merchant about what is claimed for return and why. 3. Merchant tries to save the sale by offering a replacement or other products. 4. Consumer makes a new purchase, unless refund is demanded. 5. NoHassleReturn.com generates a return label for the returning item. 6. Merchant's website appears again to offer new products to the consumer. 7. Consumer makes a new purchase. 8. Consumer ships back the returning item. 9. Shipping company delivers the item to the merchant. 10. Consumer buys more from the merchant knowing that the return process is easy and trouble-free. 5.0 Benefits Summary At NoHassleReturn.com, we feel we provide a value-added service to a variety of consumers. By having a safe and easy-to-use return service, the company benefits more people than simply the average customer. 5.1 Benefits to Merchants
Increase revenues! Enhance customer satisfaction and retention with the quick and easy return process and boost repeat sales!
Improve customer service with a simple, trouble-free way to return merchandise! Simplify the shipping hassle for consumers! Improve inventory management and logistics! Enhance your image!
Return merchandise with ease! Buy online, return online! No need to look up every single merchant for return policies every time! Generate a shipping label! Reduce or eliminate shipping costs! Keep track of your returns!
Increase awareness in the community! Cross reference marketing leads! Improve the overall image of the online merchant!
6.0 Market Analysis Summary First, it charges online merchants a flat fee for the program, which averages only 0.5% of a given merchant's total sales. Secondly, NoHassleReturn.com charges merchants a low flat 8% rate on every item's listed price that has been claimed through its website.
6.1 Market Segmentation
Year 1999 2000 2001 2002 Total Internet Retail Sales $10,800,000 $17,000,000 $26,000,000 $40,600,000
Market Analysis Year 1 Year 2 Potential Customers Books/CD/Video Toys/Games Electronics Computer Total Growth 25% 40% 30% 65% 45.83% 48,000 76,000 65,000 90,000 279,000 60,000 106,400 84,500 148,500 399,400
Year 5 117,188 291,962 185,647 667,080 1,261,877 CAGR 25.00% 40.00% 30.00% 65.00% 45.83%
6.2 Competition The company foresees three types of competition for the services we offer: 1. Direct 2. Internal 3. Channel These types of competitors are discussed in the following three sections. 6.2.1 Direct Competitors Based on the current intelligence, there is no independent company out there specializing in a "returned merchandise" service to online consumers. No single company is known to be employing a concept of establishing a single point of presence on the Internet for consumers to claim returns.
6.2.2 Internal Competitors The first competitors to the new service are the online retailers themselves. Since NoHassleReturn.com will need to strike partnerships and strategic agreements with retailers in order to offer its services 6.2.3 Channel Competitors Carriers such as UPS and FedEx may try to enter the arena. Those organizations have extensive networks of facilities, experience in shipping, and a track record of quality. 7.0 Strategy and Implementation Summary The company will utilize a dual-pricing approach to ensure a recurring revenue model. Online retailers will be charged a flat annual or quarterly program fee based on their sales volume, product categories, and specific return conditions ("no-questions-asked" or prior authorizations required, etc.). 7.1 Pricing The following table presents the proposed allocations to cover the shipping costs so that consumers could enjoy free returned merchandise shipping.
Average Price Per Item (API) Average Shipping Cost (ASC) Merchant's Share of ASC, 65% Shipping Company's Share of ASC, 20% Credit Card Company's Share of ASC, 5% Total Shares of ASC, 90% NoHassleReturn.com Rebate, 4% of API Total Allocations ASC Coverage Ratio Books/CD/Video $12 $4.50 $2.93 $.90 $.23 $4.05 $.48 $4.53 101% Toys/Games $35 $6 $3.90 $1.20 $.30 $5.04 $1.40 $6.80 113% Electronics $180 $15 $9.75 $3 $.75 $13.50 $7.20 $20.70 138% Computers $1,000 $60 $39 $12 $3 $54 $40 $94 157%
$0
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$0 $0 $0 $0 $0 $0 $0 $0 $0 $4,110,000 $4,110,000 Year 1 $200,000 $2,149,150 $2,349,150 $0 $0 $0 $0 $0 $1,380,000 $0 $3,729,150 $380,850 $427,850
$4,758,000 $14,274,000 $19,032,000 $0 $0 $0 $0 $0 $0 $0 $19,032,000 Year 2 $1,960,000 $11,445,858 $13,405,858 $0 $0 $0 $0 $0 $323,544 $0 $13,729,402 $5,302,598 $5,730,448
$14,859,600 $44,578,800 $59,438,400 $0 $0 $0 $0 $0 $0 $0 $59,438,400 Year 3 $4,105,000 $26,737,688 $30,842,688 $0 $0 $0 $0 $0 $653,822 $0 $31,496,510 $27,941,890 $33,672,338
$222,417 0% $222,417
Sales Direct Cost of Sales Other Total Cost of Sales Gross Margin Gross Margin % Expenses Payroll Sales and Marketing and Other Expenses Depreciation Research & Development Payroll Taxes Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales
$427,850 $0 $0 $427,850 $1,380,000 $69,000 $1,311,000 $1,738,850 Year 1 $250,850 $0 $0 $250,850 $0 $250,850 $4,160,000 ($3,000) ($2,669,000) $1,488,000 $1,738,850 $1,488,000
$5,730,448 $0 $0 $5,730,448 $1,703,544 $154,177 $1,549,367 $7,279,815 Year 2 $1,002,538 $0 $0 $1,002,538 $0 $1,002,538 $4,160,000 ($2,672,000) $4,789,277 $6,277,277 $7,279,815 $6,277,277
$33,672,338 $0 $0 $33,672,338 $2,357,366 $272,045 $2,085,321 $35,757,659 Year 3 $2,304,640 $0 $0 $2,304,640 $0 $2,304,640 $4,160,000 $2,117,277 $27,175,741 $33,453,018 $35,757,659 $33,453,018
10
Executive Summary
Ii
Iii
Iv
Organization Structure
Market of Business
Vi
Marketing Strategy
Vii
Financial Budget
Executive Summary:
The Business Network is a world class Mobile Accessories firm where you can find your Mobile Accessories solutions. We are providing mobile accessories for your business. We Bangladeshi People have not enough mobile accessories facilities in our business. We will provide the business organization or owner enough mobile accessories facility but affordable price. If a business owner has a better mobile accessories facility then he can do better business from before. He can communicate his workers, employees and also his co-owners. It will take less time and give better understanding in business operation. So we provide our mobile accessories service to our business or home-business client for a better work environment. We accept online orders with online money transaction and online communication. The online communication system gives you a better chance to connect with us in a few seconds. You dont need any more to come to us by vehicles or taking the hassle of traffic jam.
Make social networking with our clients in all time website connected environments. Make better connection and communication service in working place. Do better service with all time security and maintenance facilities. Collects profit huge rate but keep track clients affordability. We are a mobile accessories service business to provide your business a better mobile accessories service for communicating and data share in remote areas.
Organization Structure:
We have strong management teams with great skills. Our organization structure is top level, mid level, lower level. Top level is Chairman, Vice Chairman, Board Members. Mid level is Administrative Manager, Marketing Manager, and an Engineer. Low level is a field marketing worker, technical worker, and administrative worker. We always work as team with democratize sense.
Market of Business:
The Business Network is mobile accessories service to connect our clients. Our main business market is medium services whose need to connect with their business environment people over the online connection or internet.
Marketing Strategy:
The Business Network is mobile accessories service. We connect your business environment with our mobile accessories services. We provide our services through direct email marketing, website marketing, direct marketing, and social media marketing. We give our service in affordable price, promoting our service through online and direct marketing, sale our product through online and direct or mobile or telecommunication system.
Financial Budget:
Pro Forma Profit and Loss Sales Direct Cost of Sales Other Total Cost of Sales Gross Margin Gross Margin % Expenses Payroll Sales and Marketing and Other Expenses Depreciation Research & Development Payroll Taxes Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales Year 1 $0 $0 $0 $0 $0 0.00% $200,000 $2,170,000 $69,000 $200,000 $30,000 $0 $2,669,000 ($2,669,000) ($2,600,000) $0 $0 ($2,669,000) 0.00% Year 2 $19,032,000 $0 $0 $0 $19,032,000 100.00% $1,960,000 $9,355,520 $85,177 $951,600 $294,000 $0 $12,646,297 $6,385,703 $6,470,880 $0 $1,596,426 $4,789,277 25.16% Year 3 $59,438,400 $0 $0 $0 $59,438,400 100.00% $4,105,000 $16,379,882 $117,868 $1,783,152 $615,750 $0 $23,001,652 $36,436,748 $36,554,616 $0 $9,261,007 $27,175,741 45.72%
Pro Forma Balance Sheet Year 1 Assets Current Assets Cash Accounts Receivable Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth Year 2 Year 3
$427,850 $0 $0 $427,850 $1,380,000 $69,000 $1,311,000 $1,738,850 Year 1 $250,850 $0 $0 $250,850 $0 $250,850 $4,160,000 ($3,000) ($2,669,000) $1,488,000 $1,738,850 $1,488,000
$5,730,448 $0 $0 $5,730,448 $1,703,544 $154,177 $1,549,367 $7,279,815 Year 2 $1,002,538 $0 $0 $1,002,538 $0 $1,002,538 $4,160,000 ($2,672,000) $4,789,277 $6,277,277 $7,279,815 $6,277,277
$33,672,338 $0 $0 $33,672,338 $2,357,366 $272,045 $2,085,321 $35,757,659 Year 3 $2,304,640 $0 $0 $2,304,640 $0 $2,304,640 $4,160,000 $2,117,277 $27,175,741 $33,453,018 $35,757,659 $33,453,018
54/A, Road 12, Gulshan Commercial Area, Dhaka, Bangladesh. Phone: 02-9403222 Email: mobileaccessories@thebusinessnetwork.com www.thebusinessnetwork.com
pg. xx
Contents 1.0 Executive Summary 1.1 Mission 1.2 Keys to Success 2.0 Company Summary 2.1 Start-up Summary 2.2 Company Ownership 3.0 Products & Services 4.0 Market Analysis Summary 4.1 Market Segmentation 5.0 Strategy Implementation Summary 5.1 Competitive Edge 5.2 Marketing Strategy 5.2.1 Pricing Strategy 5.3 Sales Strategy 5.3.1 Sales Forecast 6.0 Management Summary 6.1 Personnel Plan 7.0 Financial Plan 7.1 Break-even Analysis 7.2 Projected Profit and Loss 7.3 Projected Cash Flow 7.4 Projected Balance Sheet
Accessible website that is entertaining to surf. Establishing a strong advertising campaign in a traditional media vehicle An excellent vendor relationship that will facilitate quality manufacturing of Liquid Culture's clothing and quick shipment of orders. Acquiring an excellent design staff.
NOVA will offer creative women's outdoor clothing, online, that is both functional and beautiful.
NOVA 's start-up costs consist mostly of design and marketing. Liquid Culture has $260,000 in investments and $200,000 in a short-term loan.
3.0 Products
Dresses. Occasion & evening wear. Tops. Shoes & boots. Handbags & purses. Coats & jackets. Jumpers & cardigans. Shirts & blouses. Trousers & leggings. Skirts. Maternity clothing. Petite. Playsuits & jumpsuits. Swimwear & beachwear.
Women 17-25 years of age: Youth drives the market so this is the important group to attract to the website. They have less money than the older group so we must give them what they want for less. Women 26-40 years of age: They are the core group that will drive NOVA 's success. This target group is responsible for the growth of outdoor women's wear. They will be harder to pull into the website
Market Analysis Year 1 Potential Growt Year 2 Year 3 Year 4 Year 5 CAG
h 20%
R 6,000,000 7,200,000 8,640,000 10,368,00 12,441,60 20.00 0 0 % 5,000,000 5,750,000 6,612,500 7,604,375 8,745,031 15.00 % 0 0 0 0 0 0.00% 11,000,00 12,950,00 15,252,50 17,972,37 21,186,63 17.81 0 0 0 5 1 %
15%
0% 17.81 %
6. 0 Management Summary
Rana will manage the marketing team, as well as the development and administration of NOVA 's website. He will be in charge of the clothing design team. 6.1 Personnel Plan Besides Larry and Maggie, NOVA will have a staff of eight: Three member clothing design team. Web administrator. Two member marketing team. Office manager. Accountant.
$1,800,000 $2,580,000
Gross Margin Gross Margin % Expenses Payroll Sales and Marketing and Other Expenses Depreciation Leased Equipment Utilities Insurance Rent Payroll Taxes Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales
$0 $0 $2,400 $0 $24,000 $79,740 $0 $902,740 $18,260 $18,260 $17,574 $206 $481 0.02%
$0 $0 $2,400 $0 $24,000 $86,250 $0 $1,027,650 $172,350 $172,350 $13,281 $47,721 $111,349 3.71%
$0 $0 $2,400 $0 $24,000 $92,100 $0 $1,172,500 $547,500 $547,500 $8,801 $161,610 $377,089 8.77%
7.3 Projected Cash Flow The following table and chart are the projected cash flow for three years. Pro Forma Cash Flow Year 1 Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Year 2 Year 3
$2,170,000 $2,170,000
$3,000,000 $3,000,000
$4,300,000 $4,300,000
Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance
7.4 Projected Balance Sheet Pro Forma Balance Sheet Year 1 Assets Current Assets Cash Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth Year 2 Year 3
$404,264 $264,000 $0 $668,264 $0 $0 $0 $668,264 Year 1 $311,080 $0 $0 $311,080 $155,204 $466,284 $260,000 ($58,500) $481 $201,981 $668,264 $201,981
$243,008 $380,464 $0 $623,473 $0 $0 $0 $623,473 Year 2 $199,736 $0 $0 $199,736 $110,408 $310,144 $260,000 ($58,019) $111,349 $313,329 $623,473 $313,329
$496,214 $545,332 $0 $1,041,546 $0 $0 $0 $1,041,546 Year 3 $285,516 $0 $0 $285,516 $65,612 $351,128 $260,000 $53,329 $377,089 $690,418 $1,041,546 $690,418
54/A, Road 12, Gulshan Commercial Area, Dhaka, Bangladesh. Phone: 02-9403222 Email: webuildnetwork@thebusinessnetwork.com www.thebusinessnetwork.com
pg. xxii
Executive Summary
Ii
Iii
Iv
Organization Structure
Market of Business
Vi
Marketing Strategy
Vii
Financial Budget
Executive Summary:
The Business Network is a world class IT firm where you can find your IT solutions. We are providing Network Server Design, Network Server Implementation, Network Server Integration, and Network Server Maintenance. We Bangladeshi People have not enough networking facilities in our business. We will provide the business organization or owner enough network facility but affordable price. If a business owner has a better network facility then he can do better business from before. He can communicate his workers, employees and also his co-owners. It will take less time and give better understanding in business operation. So we provide our network service to our business or home-business client for a better work environment. We accept online orders with online money transaction and online communication. The online communication system gives you a better chance to connect with us in a few seconds. You dont need any more to come to us by vehicles or taking the hassle of traffic jam.
Organization Structure:
We have strong management teams with great skills. Our organization structure is top level, mid level, lower level. Top level is Chairman, Vice Chairman, Board Members. Mid level is Administrative Manager, Marketing Manager, and an Engineer. Low level is a field marketing worker, technical worker, and administrative worker. We always work as team with democratize sense.
Market of Business:
The Business Network is networking service to connect our client. Our main business market is medium services whose need to connect with their business environment people over the online connection or internet.
Marketing Strategy:
The Business Network is a network connecting service. We connect your business environment with our network services. We provide our services through direct email marketing, website marketing, direct marketing, social media marketing. We give our service in affordable price, promoting our service through online and direct marketing, sale our product through online and director mobile or telecommunication system.
Financial Budget:
Pro Forma Profit and Loss Sales Direct Cost of Sales Other Total Cost of Sales Gross Margin Gross Margin % Expenses Payroll Sales and Marketing and Other Expenses Depreciation Research & Development Payroll Taxes Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales Year 1 $0 $0 $0 $0 $0 0.00% $200,000 $2,170,000 $69,000 $200,000 $30,000 $0 $2,669,000 ($2,669,000) ($2,600,000) $0 $0 ($2,669,000) 0.00% Year 2 $19,032,000 $0 $0 $0 $19,032,000 100.00% $1,960,000 $9,355,520 $85,177 $951,600 $294,000 $0 $12,646,297 $6,385,703 $6,470,880 $0 $1,596,426 $4,789,277 25.16% Year 3 $59,438,400 $0 $0 $0 $59,438,400 100.00% $4,105,000 $16,379,882 $117,868 $1,783,152 $615,750 $0 $23,001,652 $36,436,748 $36,554,616 $0 $9,261,007 $27,175,741 45.72%
Pro Forma Balance Sheet Year 1 Assets Current Assets Cash Accounts Receivable Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth Year 2 Year 3
$427,850 $0 $0 $427,850 $1,380,000 $69,000 $1,311,000 $1,738,850 Year 1 $250,850 $0 $0 $250,850 $0 $250,850 $4,160,000 ($3,000) ($2,669,000) $1,488,000 $1,738,850 $1,488,000
$5,730,448 $0 $0 $5,730,448 $1,703,544 $154,177 $1,549,367 $7,279,815 Year 2 $1,002,538 $0 $0 $1,002,538 $0 $1,002,538 $4,160,000 ($2,672,000) $4,789,277 $6,277,277 $7,279,815 $6,277,277
$33,672,338 $0 $0 $33,672,338 $2,357,366 $272,045 $2,085,321 $35,757,659 Year 3 $2,304,640 $0 $0 $2,304,640 $0 $2,304,640 $4,160,000 $2,117,277 $27,175,741 $33,453,018 $35,757,659 $33,453,018
54/A, Road 12, Gulshan Commercial Area, Dhaka, Bangladesh. Phone: 02-9403222 Email: webdesign@thebusinessnetwork.com www.thebusinessnetwork.com
pg. xxi
Executive Summary: The Business Network is a world class Web Design firm where you can find your Web Design solutions. We are providing web design for your business. We Bangladeshi People have not enough website networking facilities in our business. We will provide the business organization or owner enough website network facility but affordable price. If business owner has better website network facility then he can does better business from before. He can communicate his workers, employees and also his co-owners. It will take less time and give better understanding in business operation. So we provide our Website Design service to our business or home-business client for better work environment. We accept online order with online money transaction and online communication. Online Communication system gives you better chance to connect with us in a few seconds. You dont need any more to come to us by vehicles or taking hassle of traffic jam.
Business Description & Vision: The Business Network is a website designing business. Our mission is to connect your business client and your business operation and employees and of course all business environment in a website design with great performance. Our mission will complete when our client will satisfy to get a better website networking environment in his business. Our vision is capture all markets in Dhaka, Chittagong, Rajshahi, Sylhet, Khulna, Barisal and Rangpur and also all connected areas of your business. Our Goal is to provide social network service with great environment at a cheaper rate and make considerable profit. Our objective is to collect huge amount of clients to serve them our website service as their needs. Our principles are: Make social network with our clients in all time website connected environment. Make better connection and communication service in working place. Do better service with all time security and maintenance facilities. Collects profit huge rate but keep track clients affordability. We are a website service business to provide your business a better website service for communicating and data share in remote areas.
Description of Product & Service: We sell excellence with website design. Website Design: We Build website to connect your business according to your want. Website Implementation: Website Implementation for better performance. Website Integration: Website Integration for less cost and better connectivity. Website Troubleshooting: Website troubleshooting for problem solving and remove server jam. Website Data Security: Website Data Security for safe data sharing and remove virus and hacker attack. Website Maintenance: Website Maintenance for solving mechanical problem.
Organization Structure: We have strong management team with great skills. Our organization structure is top level, mid level, lower level. Top level is Chairman, Vice Chairman, Board Members. Mid level is Administrative Manager, Marketing Manager, and Software Developer. Low level is field marketing worker, technical worker, and administrative worker. We always work as team with democratize sense.
Market of Business: The Business Network is a website design service to connect our clients. Our main business market is medium services whose need to connect with their business environment people over the online connection or internet.
Marketing Strategy: The Business Network is a website designing service. We connect your business environment with our web design services. We provide our services through direct email marketing, website marketing, direct marketing, and social media marketing. We give our service in affordable price, promoting our service through online and direct marketing, sale our product through online and director mobile or telecommunication system.
Financial Budget: Pro Forma Profit and Loss Year 1 Year 2 $0 $19,032,000 $0 $0 $0 $0 $0 $0 $0 $19,032,000 0.00% 100.00% $200,000 $2,170,000 $69,000 $200,000 $30,000 $0 $2,669,000 ($2,669,000) ($2,600,000) $0 $0 ($2,669,000) 0.00% $1,960,000 $9,355,520 $85,177 $951,600 $294,000 $0 $12,646,297 $6,385,703 $6,470,880 $0 $1,596,426 $4,789,277 25.16%
Sales Direct Cost of Sales Other Total Cost of Sales Gross Margin Gross Margin % Expenses Payroll Sales and Marketing and Other Expenses Depreciation Research & Development Payroll Taxes Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales
Year 3 $59,438,400 $0 $0 $0 $59,438,400 100.00% $4,105,000 $16,379,882 $117,868 $1,783,152 $615,750 $0 $23,001,652 $36,436,748 $36,554,616 $0 $9,261,007 $27,175,741 45.72%
Pro Forma Balance Sheet Year 1 Assets Current Assets Cash Accounts Receivable Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth
Year 2
Year 3
$427,850 $0 $0 $427,850 $1,380,000 $69,000 $1,311,000 $1,738,850 Year 1 $250,850 $0 $0 $250,850 $0 $250,850 $4,160,000 ($3,000) ($2,669,000) $1,488,000 $1,738,850 $1,488,000
$5,730,448 $0 $0 $5,730,448 $1,703,544 $154,177 $1,549,367 $7,279,815 Year 2 $1,002,538 $0 $0 $1,002,538 $0 $1,002,538 $4,160,000 ($2,672,000) $4,789,277 $6,277,277 $7,279,815 $6,277,277
$33,672,338 $0 $0 $33,672,338 $2,357,366 $272,045 $2,085,321 $35,757,659 Year 3 $2,304,640 $0 $0 $2,304,640 $0 $2,304,640 $4,160,000 $2,117,277 $27,175,741 $33,453,018 $35,757,659 $33,453,018
Table of Contents
Serial
Description
Page
Executive Summary
Ii
Iii
Iv
Organization Structure
Market of Business
Vi
Marketing Strategy
Vii
Financial Budget
pg. xxiii
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