A Business Plan On

Mushroom Cultivation

Prepared For

Ms Jafrin Sultana
Assistant Professor
Department of Business Administration
Dhaka City College
Dhaka
Prepared By
Group : Eleven Star
Section : A
Batch 13
Session : 2010-11
Department of Business Administration
Dhaka City College
Dhaka
Submission Date : 30 March 2011

GROUP MEMBERS

ID No.
Name
24
A. K. M. Maidul Islam Zico
25

Saima Bente Rahman

26

Md. Sirajul Islam

27

Apsonara Himi

28

Mreedula Chaity

29

Tanvir Ahamed

30

Shachee Barnaba Gomes

31

Shamal Bhadra

32

Kaniz Fatema Mitu

33

Shimu Das Trishna

Image

Letter of Transmittal
March 30, 2011
Ms. Jafrin Sultana
Assistant Professor
Dept. of Business Administration
Dhaka City College
Dhanmondi, Dhaka.
Subject: Submission on a Business Plan on Mushroom Cultivation.
Dear Sir,
We, the member of the group Eleven Star are very glad to inform you that we have
successfully completed the report on a business plan on Mushroom Cultivation. In preparing
the report we were committed to enrich the report by giving our sincere effort and including
authentic facts and figure. We hope that this report will serve the purpose ambitioned by you
and also the need of concerned people.
In preparing the report we had limitations of time, money, insufficient manpower and is
assistance of the organization.
Therefore, you honor would be kind to accept the report considering our limitations.
Thank You
Yours Sincerely
Shamal Bhadra (Group Leader)
ID No. 31
on the behalf of
Group- Eleven Star

Acknowledgement
We, the member of Group Eleven Star are very please to accomplish the assign task given by
our revered teacher Ms. Jafrin Sultana on a business plan on Mushroom Cultivation In
preparing the report as the given subject we faced different problems such as shortage of
time. Data insufficient manpower etc. But we have been able to overcome the problems with
direct and indirect assistance from some persons. In this regard we are extremely grateful to
Md. Abdul Aziz. Who provided us with all the supportive materials for completing our task
properly.
Above all, we cannot refrain our selves from giving heartfelt thanks to our teacher Ms. Jafrin
Sultana. Who remain with us all the time for completing with complete Job.
Finally, we are please to complete the report as the given subject properly and authentically.

Executive Summary
The report is about a business plan on mushroom cultivation and production The New Life
Mushroom Firm. Here we have mainly emphasized on mushroom cultivation and
distribution of mushroom in the local market as well as to the general people. Our vision is to
become the leader is producing mushroom to the market at a lower cost and introduce our
nation as a strongest and healthiest nation in the world. Our mission is to fulfill the total
demand of nutrition of each and every family of our country at a minimum cost by providing
mushroom.
However the plan is operated in large scale. The prime promoter of

The New Life

Mushroom Firm is Shamal Bhadra along with Shimu Das, Aposonara Himi, Sachee Barnaba
Gomes, A. K. M. Maidul Islam Zico, Kaniz Fatema Mitu, Md. Sirajul Islam, Mreedula
Chaity, Tanvir Ahamed, Saima Bente Rahman. Here we followed the DEED of
PARTNERSHIP AGREEMENT. We took the help of two banks. They are Dutch Bangla
Band and IFIC Bank.
We have targeted to produce 2,000 kg of Mushroom per month. To produce 24,000 kg of
mushroom we have to invest around 2,00,00,000 Tk. in total. We are locating our project at
Kerarigonj in Dhaka district. We have selected this location for some environmental
advantages.
There are many manufacturing companies involved with mushroom production. But in
Bangladesh we are facing some problems in producing Mushroom such as, lack of efficient
HR and awareness of people. Above all, by overcoming all these problems and proper
investment, mushroom production may have a brighter prospect in Bangladesh.
We usually offer product to the customer. The major competitors of mushroom are mushroom
cultivation technology, Savar, Dhaka, PAMBO BANGLA Mushroom Ltd, The marketing
objectives of The New Life Mushroom Firm may be increase consumer awareness through
creating like and establishing banner indifferent popular web pages,

posters, magazines, newspaper etc. Our marketing mix is based on product identification,
pricing the product, selecting the place and advertisement and promotion analysis is based on
geographical and segmental segmentation.
Our total investment for the project is 20,000,000. Our project cost in 127,00,000 From our
total investment we have collected 1,04,00,000 from our partners and other 60,00,000 is
funded by the Dutch Bangla Bank Ltd. at an interest rate of 13.5% and IFIC Bank Ltd at 14%
interest rate. For producing mushroom we are costing almost 37,00,000 per year. However
we are generating profit of 20,19,500 per year.
Our main social responsibility is that we want to remove malnutrition from our country. Our
business ethics would be maintain good relationship with customers by satisfying and
providing them timely a quality product at a lower cost, no compromise with product quality
maintain a friendly environment in the organization to work smoothly.
Our contribution towards economy is employing such number of people that can make on
effective contribution towards the action of removing unemployment. And the people
concerned with project will be more benefited economically & at large it is contributing to
the livestock portion of the total GDP of the country.

Table of Contents
Chapters
Chapter One

Chapter Five
Chapter Two

Marketing Strategy
Target Market
Topics
Marketing mix analysis
Introduction
Production : Production whiteness and features
Objective
of the
report
Price : Prices
strategy
Methodology
of Distribution
the report of Channel
Place : Types of
Limitations
the report
Promotion : of
Advertising
Business Description
and Management Segment
Events Sponsorship
General Description
the Business
Personalofselling
Industry
(Bangladesh)
CorporateBackground
social Responsibility
(CSR)
Organizational
Profile
Financial Segment
Companies
Mission
Cost of Project
Companies
Vision
Land and site Development cost
Management
of theworks
Business
Building and civil
Organization
Structure
Plan and Machinery
Management
: Key Personal
Pre-Operatingteam
Expenses

Technical
Segment
Means of Financing

Location
Analysis
Capital Structure
Production
needs facilities, Utilities and Equipments
Cost of Production
Transportation Factors
Chapter Three Supplier/
Material Cost
Sources
of
Utility Cost Raw Materials
Labor
FactorySupply
overhead cost
Production
Flow Chart
Income Statement
(for one year)

ChapterFour
Six
Chapter

Marketing
Segment(for five year)
Pro-facility Projection
Current
scenario
in Bangladesh
Concludery
Part
Situation
Analysis
Conclusion
SWOT
Analysis
Appendix
& Bibliography

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15 No.
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15-16
173
173
4
17-18
5-9
18
185
5
18-19
6
20-25
207
207
207
207-8
208-9

10-12
21

2110
2210
2211
2211
2212
2312
13-20
24-25
13
26-27
2613
13-14
27

Chapter One

Introduction

Indroduction

Mushroom is a very nutritious, delicious and fully 'halal' vegetable having medicinal
qualities. Though its acceptance once was limited to a handful of people, now there has been
a gradual change in the impression.
Mushroom cultivation in Bangladesh began in 1979 with assistance from Japanese
organization JOCDV. Later, Japan International Cooperation Agency (JAICA) came up in
1987 with its assistance. Mushroom cultivation slowed down in 1990 following withdrawal
of JAICA's support.
In 2003, the government introduced a Mushroom Development Project under Agriculture
Extension

Department

for

making

mushroom

popular

among

the

people.

Different research works are being conducted under the project in addition to providing,
training on mushroom cultivation. Apart from Savar, this project has activities in Dinajpur,
Jessore, Barisal, Chittagong, Sylhet, Comilla, Khulna, Mymensingh, Bandarban, Rangamati,
Chapainawabganj and Rangpur for motivating people to cultivate mushroom.
13 species of mushroom are cultivated in Bangladesh of which Wester Mushroom is
produced commercially to a large extent. Mushroom fanning is in fact a very easy job. There
is an opportunity to make good profit by investing a little amount of capital and labour.
There are such advantages in mushroom cultivation that cannot be found in farming of other
crops. Mushroom is a fungus-type colorless plant. As they are colorless, they do not need
sunlight to survive or grow. Besides, mushroom cultivation does not require

soil. Mushroom seed can be sowed using industrial waste like wooden dust and husk of wheat
and rice. After production, these elements become fertilizer. There is no need of

any insecticide or chemical fertilizer for mushroom farming. Given a suitable environment
and proper nursing its cultivation is possible throughout the year. Electricity is not needed for
mushroom cultivation.
Experts in a health-related website said edible mushrooms have multi-dimensional effects
that help prevent different diseases. Special elements of some species of mushroom
particularly work in preventing diseases like cancer, kidney problems, hepatitis, AIDS,
asthma, diabetes, insomnia and tumor. Medicinal mushroom also plays a role in reducing
cholesterol and ridding of mental exhaustions. It is learnt from an alternative medicinerelated website that a mushroom called Reishi is being used in AIDS treatment.
On inventing medicine from mushroom in the 21st century, ST Chang says it can be said
based on the research in the last two decades mushroom will be able to play a successful role
in

the

future

in

those

fields

where

modem

medicine

system

will

fail.

There is a huge prospect of mushroom cultivation in Bangladesh. It can play an important

role in eradicating malnutrition, one of the main problems of the people, and preventing
diseases. By mushroom cultivation, it is possible to alleviate poverty and providing
employment for educated unemployed, youths, adolescents and women.

Objective & Scope

Some basic objective has encourages us to study to the topics & to prepare the report they are
as follows:

To full fill the course requirement of IBP.

To know the role of mushroom in economy of Bangladesh.

To know the present status of mushroom.

To be informed about various mushroom product.

To know the usefulness of mushroom.

To be informed about the lacking of mushroom product.

Informed the amount of demand of mushroom.

To know how to conduct feasibility study.

To know how a business project can be establish.

Methodology
To do a feasibility study on Mushroom food project. All the definitions and concepts are to be
taken from different books, articles and internet. The preparation of report of feasibility
study of mushroom based involves the following steps:
Firstly, we have tried to identify the required data and data sources of the study. For selecting
the relevant data we followed

Our course instructors advice.

Training report on mushroom cultivation by scrabble sanchita.

Data Collection:
We use both primary and secondary data from Market survey
Other official reports
Internet

 Visiting competitions firm.

To prepare this project we also use MS-Word 2003, MS-Excel- 2003.

Next, we started our work of collecting data regarding the price of machineries raw material
etc.
Then we visit some other agro based project for practical field experience for preparing
financial calculations we used

Working capital requirements

Expected cash generation.

Projected cash flow estimation

Risk analysis.

Finally, we prepare the feasibility study report by analyzing all information in some specific
areas like management, technical, marketing and financial.

Limitations
Preparation of feasibility study of mushroom based farm involves a number of limitations in
its various stages. While preparing the report, we face the following problems which we tired
best to avoid.
Collection of data is a hard job in the stage of project because many prevailing farms are not
interested to share there confidential information.

Price of raw material is not accurately know every time.

It is difficult to estimate and do all the financial projections accurately according to

the current market.

Chapter Two

Business
Description &
Management
Segment

General Description of the Mushroom Business

We are going to start a firm which name is New Life Mushroom Firm. We will cultivate
and provide mushroom to the people who want to read a healthy life.
We see, most of the people of our country are facing many physical problems and losing their
health kidney problems, diabetics, cardio logical problems, skin problems are the common
problems of all ages of people. As mushroom is a nutritious food and also has a great
medicine value. It has a great importance to prevent these problems. It also fulfills the
demand of vitamins and calcium.
Mushroom is now considered both socially and commercially significant plant ever have
discovered and is widely distributed in the indo-pacific region including Bangladesh. Now
mushroom is getting converted as a product. Besides that, we have a very a warm, mild
climate thought the year. We get more sun-deep that any other location in Bangladesh which
is suitable for mushroom cultivation. So, we decide to establish a mushroom firm.
Our business ethics would be maintain good relationship with supplier by cleaning payment
timely, and providing them other facilities and maintain good relationship with customers by
satisfying and providing them timely a quality product at a lower cost, no compromise with
product quality maintain a friendly environment in the organization to work smoothly.
Always follow chain of command in decision making and other activity.

Industry Background
Although, mushroom is a popular and nutritious food in many countries of the world, many
in Bangladesh had long been ignoring this stuff considering it a fungus. Now there has been a
gradual change in the impression. Bangladesh is a development countries.

Where 80% of child and women are attacked different diseases like cancer, kidney, diabetes.
Mushroom can prevent this easily. There are some organization are related with producing
mushroom. They are1. Mushroom cultivation technology, Savar, Dhaka.
2. PANBO BANGLA MUSHROOM LTD.
3. Green House Mushroom Center.
4. Ocean Enterprise.
5. Khondoker Trading Co.
6. Expo BD Trading Company
7. Advanced Mushroom firm
8. Mycolife Food & Nutrition Ltd.
9. Mushroom Valley
10. Dream Integrated Agro Complex

Organizational Profile

New Life Mushroom Firm

Keranigonj
Dhaka
Phone : 02-9222667
Cell No. : 01754743136
Web Site : www.newlifemushroomfirm.com
Email Address : nlmf@yahoo.com

Mission
Fulfill the total demand of nutrition of each an every family of our country at a minimum cost
by providing mushroom.

We will expand our business in all districts and attract general customers.

Our sales department will distribute mushroom among the retailers shop owners.

Through this our business we will be able to provide people with nutritious Food mushroom.
So we desire to be a successful entrepreneurs organization.

Vision
To become the leader in producing & exporting mushroom in the market
at a lower cost and introduce our nation as a strongest and healthiest nation
in the world.

The Management of New life Mushroom Firm

The part of the feasibility study of New Life Mushroom Firm contains the management
aspect of the firm. A brief description of the promoters, partners and their share holding
status, the legal form of business, organizational structure that is the organ gram, the key
resource person the firm and the bankers are given below.

Organizational Structure

New Life Mushroom Firm has got a very sound list of qualified and skilled workforce having
wide range of experience in the related position. Under the head of organization structure
firms organ gram is demonstrate and brief explanation is also given for better understanding
of the authority and responsibility.

Chairman

Managing Director

General Manager

Production
manager

Financial
Manager

Supervisor

Executive

Accounts
Manager

Sales man

Sales
Manager

Marketing
Manager

Sales man

Chairman; Shamal Bhadra: He is the prime partner of New Life Mushroom Firm. He is the
chairman of the firm. He has long experience in mushroom Agriculture and its subsector in
the country area. He is very young energetic and dynamic person. He was an active partner of
all the small mits of the family business for the last 4 years.
Managing Director; Shimu Das Trishna: She is also an active partner of the New Life
Mushroom Firm. She is the managing Director of the firm. However, she has similar
experience in another food firm and her academic knowledge will help the firm to achieve the
efficiency and effectiveness in the operation.

General Manager; Apsonara Himi: She is also an active partner of New Life Mushroom
Firm. She is the General Manager of the firm. She is very young energetic and dynamic
person.

Production Manager; Shachee Barnaba Gomes: She is also an active partner of the firm
New Life Mushroom Firm. She is the production manager. She got the experience to do
production mushroom in firm. Last 3 years she was involves with an agriculture.
Financial Manager; A. K. M. Maidul Islam Zico: He is a Partner of the New Life
Mushroom Firm. He tooks after the financial section of the project. He is very effective in
his working.
Accounts Manager; Kaniz Fatema Mitu: She is are of the most active partners of the firm.
She is the Accounts Manager of the firm. She does not have much experience is this sector
but his academic qualification relating to accounting knowledge. She will look after final
accounting segment of the firm.
Sales Manager; Md. Sirajul Islam: He is also an active partner of New Life Mushroom
Firm. He is the sales manager of the firm.
Marketing Manager; Tanvir Ahamed: He is also an active partner of the firm New Life
Mushroom Firm. He is the marketing manager of the firm. He got the experience to do
market of mushroom in local market.
Supervisor; Mreedule Chaity: She is an essential partner of the firm. She will look after
about the quality improvement of mushroom.
Executive; Saima Bente Rahman: She is also as active partner of the firm. She is as
Executive of the firm. She also see financial sector of the firm.

Chapter Three

Technical
Segment

Location Analysis

We are locating our project at Keranigonj in Dhaka district. We have selected this location for
some environmental advantages, we have a very warm, mild climate throughout the year so
we can produce throughout the year, we get more sun deep than any other location in
Bangladesh and sun deep is absolutely is absolutely essential for the growth of mushroom.

Figure : Map of our location

Production related facilities

We need power supply and regular water supply. We need an office to perform our daily
activities. Our office will be situated in Keranigonj. We also need file cabinets, computer
desks. We will also keep contact with our suppliers. So that we will get our production
materials easily. We need nets to save fruits from other insets. Then we need fertilizer to give
nutrition to the plants.

Transportation Facilities
After harvesting Mushroom we need to take then to our processing center. Then we have to
take the processed items to the customers. So we need to take the buyers order to the local
market. Thats why we need to have our own transportation facilities. We will have our
delivery vans in three roots.

Sources of Raw Materials

In our mushroom cultivation business, the main raw material is spawn. We will collect
it from Mushroom Development Project Center, Sobahanbag, Savar, Dhaka. Other
materials - Paddy straw
- Plastic sheet
- Wooden mould
- Hand chopper
- Jute rope
- Coconut rope or Plastic ropes,
- Summy leas
- Straw

- Storage sheet 10x8m

We collect these from local market.

Labor Supply
Labor is an important part of our firm. We will collect our labor from the local area.
We will give train about mushroom cultivation. We think labor will be available here
and they will be interested to work with us. Here labor cost is not very high.

Production Flow Chart

Production Area

Transportation

Whole sell Market

Local Market

Consumer
Consumer

Chapter Four

Marketing
Segment

Current scenario in Bangladesh

Current scenario in Bangladesh is Positive. Many firms and research centers are cultivating
mushroom in many places. Showers expects nearly 17,000 tones of output from other
companies over the years The initial production will meet 50 percent of the gross annual
demand for mushroom. People are getting health conscious day by day. A healthy person
need 200-250 gram vegetables per day. But 87% people of our country are lack of vitamins.
So mushroom play a vital role in our country 50% of women and Childs are lack of vitamins
and calcium mushroom can prevent this easily.

People in different classes are getting

interested in mushroom. They are getting aware about the nutrition and usage of mushroom.
Retailers are interested in selling mushroom because of its high price. So current position of
mushroom business is in a good stage. And we will use this opportunity.

Situation Analysis
Our mushroom cultivation is production oriented business. Our market size is not small. We
will serve different class. Our market consists of general consumers, retailers, super stores. As
many foods are produced from mushrooms. So those food industries are our customers.
Customers want quality product. They prefer mushroom which are good in look large in size
and tasty. So we have to meet the whole demand. Market trends are two types. One is market
skimming and another is market penetration. Our market trend would be market penetration
Because our purpose is to run the business for a long time.

SWOT Analysis
SWOT Analysis is a very important of marketing plan. Here we discuss about our strength,
weakness, opportunity and threat our plan is to produce a nutritious and a tasty food. And we
will meet the local and international demand. We found following points through SWOT
Analysis.

Our Strengths

Our Weakness

1. Lower Cost

1. Shortage of capital

2. Chemical Free

2. Lack of insufficient HR

3. Huge Production

3. Lack of people awareness

4. Strong distribution
Our Opportunities

4. Limited customer
Our Threats

1. We want to make a soup powder for

1. Political crises

the diabetics patients.

2. Export and tax procedure may be

2. We will export our product

3. Dont have much local competitors.

changed
3. Rising of International food price
4. Strict legislation could impact the
market.

Marketing strategy
We have classified our market according to their class, needs, behaviors. We will satisfy our
all customers by different service. There are three types of customers. They are general
people, middleman, and industry market. We have to capture the whole market. For this we
have done a marketing research regarding mushroom among people. In that research some
thing are found this things are given below:

Customers want quality products, nutrition at a reasonable price

Our target customers are consumers, retailers, food industries, super store.

As there are small entrepreneurs are in this business, they can be convinced to buy
our product.

There is not any popular brand of mushroom. So customers are not so much aware
of the brands.

Different kinds of promotional activities can help us getting a good result.

Target Market
Target Market

Geography

Class

Local Market
Super Shop
Food Industry
Towns
Districts

Root level
General customer

Marketing Mix Analysis

Production:
Product Uniqueness and Features:

Our business product is mushroom, Hypomyces lactifluorum (Binomial name) they are
popular for their usage and taste. It can be gown in home, outside on that places those are not
used in home. In the firm they can be grown in significant system.
Scientific Classification:
Kingdom

: Fungi

Division

: Ascomycota

Class

: Sordariomycetes

Order

: Hypocreales

Family

: Hypocreacese

Yenus

: Hypomyces

Species

: H. Lacitifluorum

Mushroom is nutritious food. It has some common features. They are.

For producing Antibiotic Penicillin

Preventing Hypertension

Prevention Cancer and Tumor

Developing Immure system of childs body

Mushroom is also important for Diabetics and constipation patient. So all of ages people can
cat mushroom easily.
Mushrooms are great of benefits. They are non calories, rich in vitamin B, Calcium,
Phosphorus, Potassium, Sodium, Thiamin, riboflavin niacin etc. They have been used in
medicines. Different types of foods are made from it. Mushroom fry, Mushroom soup,
Mushrooms Jam, salad etc.

Vitamin B
Thiamin
mg
Riboflavin
mg
Niacin
mg
Biotin
mg
Nicotinic Acid mg
Pertotinic Acid mg
Ascorbic Acid mg

4.8
4.7
108.7
1.8
58.2
23.8
81.9

Minerals
Calcium, ca
mg
Phosphorus, P mg
Potassium, K
mg
Sodium, Na
mg
Total

333
1348
3703
837
6221

Price :
Prices Strategy : Our cultivation cost will be 3700000 taka. And the overall cost will be

9600000 taka. Considering competitive price and amount of profit, we fixed 400 taka per kg.
If we sell at this rate, we can earn about 23% profit which is good for us. Other cultivators get
between 600 to 800 per kg. So, we think that customers will get a quality product at a
reasonable rate. This will be effective for us.

Place :

Types of Distribution Channel: Our products will be distributed by a well planned

distribution channel. Our channel is indirect but small. So sell as a consumer product we will
use a distribution channel. And as a industry product. We will use another distribution
channel.
So sell as a consumer product, a channel is given below:

Producer

Whole
seller

Retailers

Consumer

To sell as a industry product a channel is given below:

Food
industry

Producer

Whole
seller

Retailer

Consumer

Promotion:

Promotion is the way to increase the sells of a organization. We will perform different
promotional activities. We can draw their attention to our product by promotion. We have
some idea to promote our product. They are:
o Advertising : We will do different types of advertisements. They are given below:

Newspaper

Magazine

Television

Radio

Open advertisement

Transport advertisement

Leaflet

o Events sponsorship: We will keep good relation with public. For this we will be
sponsor of various cultural program or health conscious program. So that can we
keep in touch with public. We will gain publicity also.
o

o Personal Selling: We will do survey in market time to time. We will do different

short term activities. We will servive through Our personal sell center
Super shop

Corporate Social Responsibility (CSR)

Every business has a social responsibility. It shows our awareness about society. It will
introduce us in a better way. Our corporate slogan is.

Better life through nutritious Food

We will donate 3% of our profit for cancer patients who cant get a better treatment because
of poverty.
We will collect information abut our product from the market. We will keep update and take
their feedback about our mistakes and mismanagements and take steps to control them.

Organizational constituents are the people and organization who are directly affected by the
behaviors of an organization and who have a stake in its performance. The interests of people
who own and invest in an organization are affected by virtually anything the firm does. It the
firms manager commits criminal acts or violates acceptable ethical standards. The resulting
bad press and public outcry will likely hurt the organization profits and prices.
Organization also has a responsibility to their creditors. It poor social performance hurts
organizations abilities to repay its debts, those creditors and their employer will also suffer.

Chapter Five

Financial
Segment

Cost of the Project

Particulars

Cost of Assets
Amount in Tk.
Amount in Tk.

Fixed Assets:
Land

30,50,000

Office building

25,00,000

Plant and machinery

12,00,000

Vehicles

20,00,000

Miscellaneous
Total Fixed Assets
Pre-Operating Expenses
Total cost of the Project

1,50,000
89,00,000
1,00,000
90,00,000

Means of financing
Our total investment for the project in Tk. 20,000,000. Our total project and production cost
in 12,700,000. From our total investment we have collected tk. 14,000,000 from our New
Life Mushroom Firm partners and others from Dutch Bangla Bank Ltd. and IFIC Bank Ltd.
Loan Capital:
Name of the Bank
IFIC Bank Ltd.
Dutch Bangla Bank Ltd.

Total Amount
30,00,000
30,00,000

Interest Rate
14%
13.5%

Capital Structure & Chart:

Equity

Loan

Total

1,40,00,000

60,00,000

2,00,00,000

33%

Equity
Loan

67%
Figure : Capital Structure

Cost of the Production

Particulars

Cost of Production
Amount in Tk.
Amount in Tk.

Material Cost:
Raw materials :
Spawn
Paddy Straw
14-18 PP Bag
Sammy leags

10,00,000
1,00,000
60,000
1,00,000

Jute rope

20,000

Coconut Rope

20,000

Rubber Band

40,000

Brown Paper

40,000

Balance

20,000

14,00,000

Chemicals :
Calcium Carbonate

50,000

Casing Soil

50,000

1,00,000 15,00,000

Utilities cost:
Power

1,00,000

Water

3,00,000

Labor Cost
Factory Overhead cost:

4,00,000

Repairs maintenance

5,00,000

Rent

1,00,000

Taxes

6,00,000

Insurance

2,00,000

Cost of Production

4,00,000

14,00,000
37,00,000

Income Statement (one year)

Particulars
Sales Revenue (2,000 12 400)

Amount in Tk.

Amount in Tk.
96,00,000

Less: Cost of Production

Material cost

15,00,000

Utilities cost

4,00,000

Labor cost

4,00,000

Overhead cost
Gross Profit
Less: Administrative Expense

14,00,000

Office Salaries

9,00,000

Office Supplies

80,000

Telephone Expense

20,000 10,00,000

37,00,000
59,00,000

Less : Selling Expense

Packing Expense

1,50,000

Postage & Stationary

Earning before Interest and Tax.
Less: Financial Expense

1,50,000 3,00,000
8,25,000

Depreciation

8,90,000

Earning Before Tax

Less: Provision for Taxation 30%
Profit After Tax

17,15,000
28,85,000
8,65,500
20,19,500

Note :
1. We produce 2,000 kg per month and sales 400 Tk. per kg.
2. Financial expenses:

13,00,000
46,00,000

30,00,000 14%

= 4,20,000

30,00,000 13.5 %

= 4,05,000
8,25,000

3. Depreciation: 89,00,000 10%

= 8,90,000

4. Tax: 28,85,000 30%

= 8,65,500

Projected Income Statement (Five Years)

Sales Revenue
Loss. cost of
Production
Gross profit
Less:
Administrative
expense
Selling
expense
EBIT
Less:
Financial
expense
Depreciation
EBT
Less:
Provision for
taxation (30%)
Profit after tax

Year-1
96,00,000
(37,00,000)

Year-2
1,00,00,000
(40,00,000)

Year-3
1,20,00,000
(45,00,000)

Year-4
1,50,00,000
(48,00,000)

Year-5
2,00,00,000
(50,00,000)

59,00,000
(10,00,000)

60,00,000
(12,00,000)

75,00,000
(15,00,000)

1,02,00,000
(17,00,000)

1,50,00,000
(20,00,000)

(3,00,000)

(5,00,000)

(7,00,000)

(8,00,000)

(10,00,000)

46,00,000
(8,25,000)

43,00,000
(10,00,000)

53,00,000
(15,00,000)

77,00,000
(17,00,000)

1,20,00,000
(20,00,000)

(8,90,000)
28,85,000
8,65,500

(9,50,000)
23,50,000
7,05,000

(11,00,000)
27,00,000
8,10,000

(12,00,000)
48,00,000
14,40,000

(14,00,000)
86,00,000
2,58,000

20,19,500

16,45,000

18,90,000

33,60,000

60,20,000

Note:
1. Sales Revenue Raising Rate :
Years 2 :

1,00,00,000 96,00,000
4.16%
1,00,00,000

Years 3 :

1,20,00,000 1,00,00,000
16.67%
1,20,00,000

Years 4 :

1,50,00,000 1,20,00,000
20%
1,50,00,000

Years 5 :

2,00,00,000 1,50,00,000
25%
2,00,00,000

2. Cost of the Production :

Years 2 :

40,00,000 37,00,000
8.10%
37,00,000

Years 3 :

45,00,000 40,00,000
12.5%
40,00,000

Years 4 :

48,00,000 45,00,000
6.67%
45,00,000

Years 5 :

50,00,000 48,00,000
4.167%
48,00,000

Chapter Six

Concludery Part

Conclusion
In Bangladesh mushroom cultivation is still an unfamiliar business. Most of the people are
unknown to this business. But the demand of mushroom has inspired us to start a mushroom
firm like ours New Life Mushroom Firm. I regard of this firm we tried to collect huge
informations to run our firm successfully. By analyzing information we found that
mushroom business is such a business where we can invest a little but profit a lot.
New Life Mushroom Firm will provide healthy and various hinds of mushrooms at a
suitable price. We will focus on all classes of people. For this reason we will plan for
consumers, retailers and food industry. We are very hopeful about this business plan and we
expect that we will fulfill the customers satisfaction.
With the help of proper and qualified management we will be able to maintain our business
properly and successfully as it is the first condition of a successful firm. Also it is the strength
of our business plan.

Appendix & Bibliography

Website:
UNDP.org/tede/best prace/agri/cases/India-3htm mushroom org.com
Fungi,com
mushroom.com
mushroom recipes.com
G.mushroom.com

Reference Books:
Training Guide Shak Rohol Amin.
Mushroom cultivation technology or A.B. Siddiki
Mushroom Cultivation Sodamol Condrode
Food and Nutrition Prof. Syheeda Halima Rahman.
Food and medicine Prof. Syheeda Halima Rahman