Professional Documents
Culture Documents
Nest interior decor is a proposed venture that will offer comprehensive interior design services for homes and offices in the Framgate, Dhaka area. Nest Interior Decor also will provide access to products to complement the design consulting services including furniture, both new and antique, decorator fabric, and home and office accessories. This venture offers the personalized services the target market desires and can afford in a way that is unique from concept to implementation. Recent market research indicates a specific and growing need in the area for the interior design consulting services and products Nest Interior Decor offers the market it will serve. The market strategy will be based on a cost effective approach to reach this clearly defined target market. Although the population of Dhaka is 15 million, in this huge population a big amount is middle class. Some people buying flat but the do not how they will decorate their flat or small business enterprises do not how they will decorate their office. Nest Interior Decor motto is building an interior designing culture in middle class people or in society. The approach to promote Nest Interior Decor is give interior designing service in cheap rate to their client. Nest Interior Decor will focus on developing solid and loyal client relationships offering design solutions based on the client's taste, budget, use, and goals for the space. The additional selection, accessibility of product, design services, and value-based pricing will differentiate Nest Interior Decor from the other options in the area. Our capital is Tk. 40, 00,000 and all of our partner contribute it equally.
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Objectives
Realize an average of tk 100000 of sales each business month for the first year,
tk 175000 for the second, and tk 200000 for the third year. billing. Establish a commercial revenue client base accounting for 10% of total Generate a minimum of 45% of revenues from product sales versus consulting
revenues.
Mission
Nest Interior Decor is an interior design service for discerning, quality-conscious clients that seek assistance in their design choices for their primary residences, vacation homes, and businesses. This experience offers personal attention through the design process and also provides design resources and products to its clients through special purchases of furniture, fabric, and accessories. The total experience is provided in a way to inform, inspire, and assist people through the process of transforming their home or business environment to become a unique and personalized expression of themselves and add to their enjoyment of that interior space.
Keys to Success
The primary keys to success for will be Nest Interior Decor based on the following factors: 1. 2. Provide the highest quality interior design consulting experience possible. Sell specially selected products to these clients to further meet their interior
design needs. 3. Communicate with our client base through the website and personalized
communication techniques. 4. Retain clients to generate repeat purchases and initiate referrals.
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Company Summary
Nest Interior Decor is a start-up business that will offer comprehensive interior design services for home and office. This business will assist those that want to have guidance and council in developing a basic design concept of their project, to the person that desires someone to take it from concept to complete implementation. Nest Interior Decor will offer the ability for clients to purchase new and antique furniture, art work, decorator fabric, and home accessories. The website www.nestinteriordecor.com will be used as another way to communicate the services available and provide a portfolio of the work accomplished. The business will begin as a home-based business and is expected to remain in this structure through at least the first three years.
Company Ownership
Nest Interior Decor is a partnership business. Its capital will shared equally among 4 members, as we as its liabilities also. Its profit will divide equally among the partner. Here are some criteria that should be in partnership deed: Partners will run the business. One of the partners will be CEO. Under his/her
supervision all works will done with the permission of other partners. The CEO will select for a time period than next CEO will be another partner. This decision will decided with negotiation with the partners Partners cannot add or remove new partners without permission of all other
partners. Any bad situation will handle with the partners decision
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If any instant decision require partners can decide but first the decision should
known by all
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Personal assistance from a complementary product offering, including hard-covering window treatment, hardware, and home accessories that fit the look and objectives of each project.
Competitive Comparison
Our competition is primarily from other interior designers. Looking at a broader picture, there is also competition from the "do-it-yourself" resource providers that have retail stores and websites that include the following: We have done agreement with Hatil, Otobi for providing furniture but we dont take the regular designed furniture of hatil or otobi. First we talk with our clint try to understand about their demand then we make design by our designer and that design furniture make otobi and hatil. Bed sheet, pillow and other fabric related accessories we collect from otobi and home textile but we try to change color, print and some design of fabric according to our customer choice. Other accessories also made in different way according to our customer choice.
Sales Literature
A simple and professional looking catalog will be available to provide to transfer sources, leave at seminars and on a select basis, use for direct mail purposes.
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be prized and loyal clients. This information will be leveraged to better understand who Nest Interior Decor will serve, their specific needs, and how to better communicate with them.
Market Segmentation
The profile of the Nest Decor Interior client consists of the following geographic, demographic, psychographic, and behavior factors:
Geographics
The geographic market is the well-off sector within the Dhaka area with a population of The total target market population is estimated at 2 million based on the following
15 million. demographics.
Demographics
Female, married and have attended university. Have children, but they are not necessarily at home. A combined household annual income greater than tk100000. Age range of 35 to 55 years, with a median age of 42. They and/or their spouse work in a professional setting and may have interior design
requirements for their office space as well as their homes. The following is known regarding the profile of the typical resident of Dhaka: 67% have lived in the area for seven years or more. 23% are between the ages of 35 and 44. 40% have completed their education.
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24% are managers, professionals and/or owners of a business. 53% are married. 65% have no children living at home. 56% own their residence.
Psychographics
The appearance of her home is a priority. Entertaining and showing her home is important. She perceives herself as creative, tasteful and able, but seeks validation and support regarding her decorating ideas and choices. She reads one or more of the following magazines: Mirror. Canvas. Anannya Nishorga Utsab.
Behaviors
She takes pride in having an active role in decorating their home. Her home is a form of communicating "who she is" to others. Comparison positioning and stature within social groups are made on an ongoing basis, but rarely discussed. Nest Interior Decor is providing its clients the opportunity to create a home environment to express who they are. They seek design assistance and have the resources to accomplish their goals. They desire their home to be personal, unique, and tasteful as it communicates a message about what is important to them. Nest Decor Interiors will seek to fulfill the following benefits that are important to our clients.
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Now days In Bangladesh flat buying trends are more popular. Because making building is very costly & difficult job. Middle class people whose earning tk100000 or more then that they buy flat. And they want to decorate their flat tastefully & attractively. So growth of interior designing market increasing day by day. Market Needs Nest Interior Decor will provide its clients the opportunity to create a home environment to express who they are. They have the choice to actively participate in the design, look, and feel of their home. They desire their home to be personal, unique, and tasteful as well as communicate a message about what is important to them. Nest Interior Decor seeks to fulfill the following benefits that we know are important to our clients. Service Business Analysis The industry continues to be competitive with a "commodity" concern with "designers" of all skill and background levels available throughout the market.
Potential Competitors: There are many other interior designers in the Dhaka area and
these competitors range from those that provide simple-focused services, such as draperies only, to a more full-service interior design approach similar to Nest Interior Decor
Power of Suppliers: Moderately high in most anyone that has a business license can Power of Buyers: Very low as buyers work within the financial terms and product Competition: Moderately low with the "territorial" structure that the industry
have access to wholesale purchase of furniture, fabrics and accessories. availability offered through the suppliers that specify the terms and conditions. experiences and moderately low exit barriers. The easy entry is accompanied with an easy exit and people get out when it is not working. With the slow, but steady, growth of the past few years, the industry is now experiencing a "cautious optimism" regarding the future. Growth and expansion activities for most areas of the interior design industry appear to be carefully considered. Many in the industry continues
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to decide what to do and buy as the economy has experienced a slowdown and increased uncertainty from the more economically confident 2000's. Distributing a Service We offer three different package for home designing and two for office designing. The packages mention below: For home design:
1.
Plywood charm: under this package all furniture will made by plywood. This package Ironic splendor: under this package all furniture will made by iron. This package price Wooden grace: under this package all furniture will made by wood. This package price
is tk70, 000.included only fabrics. 3. is tk1, 00,000.here we only provide furniture. For office design:
Office xatras: here we will use plywood & metal made furniture. Office royalty: here we will use all wood made furniture.
Main Competitors
Current local competition includes the following:
Interior Designers: There are 18 interior designers listed in the Bangladesh Yellow Pages that offer fabric as a part of their services. Interior designers make profit off markup of fabric in addition to their hourly services charges. Their costs per yard are typically higher since they do not benefit from retail or volume discounts. Therefore, their costs to their client are often two to four times higher than the price per yard from Nest interior decor.
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House of Fabrics: Nationwide recognition and buying power of numerous types of dated fabric with strong product availability. This store has experienced financial difficulty in recent years and has closed several locations throughout the country.
Warehouse Fabrics: Locally owned, offering low-cost products with a wide selection of discontinued fabrics and only a limited number of "current" fabrics. This warehouse concept offers marginal client service with what many "upper end" clients consider to be an "undesirable" shopping environment.
Website Providers: Fabric sales over the Web are limited at this time, and this will be a source of competition for the future to watch. Currently, there is no measurable impact on our market through competitive websites.
service throughout.
SWOT Analysis
The following SWOT analysis captures the key strengths and weaknesses relating to the market analysis summary and describes the opportunities and threats facing Nest Interior Decor. Strengths
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The proven ability to establish excellent personalized client service. Strong relationships with suppliers that offer flexibility and respond to special Good referral relationships with architects and local 0rganizations. Client loyalty developed through a solid reputation among repeat, a little bit
product requirements.
higher purchase clients. Weaknesses Opportunities A significant portion of our target market is desperately looking for the services Strategic alliances offering sources for referrals and joint marketing activities to Promising activity from new home and real estate construction firm. Changes in design trends can initiate home updating and, therefore, generate The subscriber is still not aware of interior decoration. Not well established in a market where a variety of interior design options exist. Challenges of the seasonality of the business.
Nest Interior Dcor will offer. extend our reach. sales. Threats Continued price pressure due to competition or the weakening market reducing Dramatic changes in design, including fabric colors and styles can present
contribution margins. challenges to keep pace with what is desired by what is expected to be a leading-edge client base. Expansion of products and services offered by other firms and stores into the local market.
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Catalog resources and foreign based decoration in multinational organization. This analysis indicates solid potential success, but the weaknesses and threats
Strategy Pyramid
The following three strategies summarize our implementation process for the upcoming year. They address in revenue, expansion to revenue sources, and Web-based sales activities. STRATEGY #1 - Generating Referrals Tactic #1A - Build a client base through contacts with probable clients and with Tactic #1B - Build a referral network through professional contacts. Offer
the architecture firm. special discount in reasonable time frame and enable to provide something very unique for each customer. Program #1A - Press release in the local paper announcing the business is Program #1B - Offer seminars through organizations to promote the concept of designer and using Nest Interior Decor. flourishing day by day. using an interior
STRATEGY #2 - Product Sales Tactic #2A - Promotion of products available through Nest interior Decor. Program #2A - Seminars and demonstration promotions. Program #2B - Cross selling activities with home and office consulting. Tactic #2B - Promotion of art and antiques. Program #2C - Demonstrate the unique qualities Nest deco offers to promote
these higher priced activities. Program #2D - Display this through the online and notebook portfolio.
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Tactic #3A Better facilitates and communicates Nest Interior Decor services Program #3A - Design of www.nestinteriordecor.com. Program #3B - Integration of complete client work. Tactic #3B - Monthly assessment of performance of email inquiries. Program #3C - Establish goals of the program. Program #3D - Evaluate the client work initiated through the site.
Value Proposition
Nest Interior Decor offers the highest interior design experience for the home and office conveniently available for those in the urban and semi-urban area. The concept is unique through the selection of antiques, home accessories, and complementary products along with the interior design consulting experience.
Competitive Edge
Nest Interior Decor will be differentiated from other interior designers by the value it offers in quality, sought-after products not found through other designers or store choices, and through the excellent service and support it offers. It will offer best post operational service.
Marketing Strategy
The marketing strategy is based on establishing Nest Interior Decor as the resource of choice for people in need of interior design ideas and products. The more involved "do-it-yourself" and the "buy-it-yourself" clients will find the consulting and guidance helpful. All clients will find Nest Interior Decor to be a resource to decorate their homes and offices in a way that is inspiring, inviting, motivating and good looking. Our marketing strategy is based on superior performance in the following areas: Unique consulting services. Product choices specifically chosen for each individual client project.
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Overall quality of the experience and the result. Excellent client service and support regardless.
This marketing strategy will create awareness, interest, and appeal from our target market for what Nest Interior Decor offers our clients. This will be executed in a manner that will welcome them to come back for repeat purchases and encourage them to refer friends and professional contacts.
Pricing Strategy
Product pricing is based on offering competitive value to our clients compared to others in the market. Value is determined based on the best design services, providing a "picture" of what the space will look like before the work begins convenience, and timeliness in accomplishing the goal.
Promotion Strategy
The promotion strategy will focus on generating referrals. Other potential sources of promotion include:
Newspaper Advertisements: Select advertisements in the National Daily Bengali and Television Advertisements: Introduce a documentary program on "Interior Quarterly Postcard: A greetings card to be distributed to the client mailing list on Website: Traffic from www.nestinteriordecor.com.
English newspaper. Decoration" and attractive advertisements in local television channels. different occasions.
Distribution Strategy
The primary source of distribution is through the tradition retail distribution channel. On a secondary basis, it will be through the website via e-mail inquiries and phone sales, or directly from the site itself.
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Marketing Programs
The single objective is to position Nest Interior Decor as the premier source for home decorator service in the urban and semi urban area, commanding a majority of the market share within three years. The marketing strategy will seek to first create client awareness regarding the products and services offered, develop that client base, establish connections with targeted markets and work toward building client loyalty and referrals. Nest Interior Decors four main marketing strategies are: 1. 2. 3. 4. Increased awareness and image. Leveraging existing client base. Cross selling. New home construction promotion.
The strategies will be implements through the following marketing tactics and programs. Strategy #1 INCREASED AWARENESS and IMAGE - Informing those not yet aware of what Nest Interior Deco offers. Advertising Daily News Paper Television channels. Referral Generation
"Open house" promotions. Complementary customer referrals. Organization Relationships Co-sponsorship of fund raising activities. Participating in social and service events.
Strategy #2 LEVERAGING CLIENT BASE - Our best sales in the future will come from our client base.
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Client Service and Relationships Exceptional client service in the store. Follow up contact. Personal shopper support. Additional Experiences Classes. Demonstrations.
Strategy #3 CROSS SELLING - Increasing the average amount per transaction. Internal Additional sales of furniture, art pieces, and fabric and home accessories. Look for office/commercial assignments. Prospecting Ongoing work including more involvement in the implementation phase. Future assignments based on additional work initiated by family changes and
transitions. Strategy #4 NEW HOME CONSTRUCTION PROMOTION - Connecting with people involved in the building process. Connecting with "Suppliers" Gift certificate program. Builders design support services. Loan Officers gift certificate program. Connecting with "Clients" Subscription and use of "newcomers" report. Chamber of Commerce new members update.
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Positioning Statement
For the person that seeks to create a personalized and unique impression of home, Nest interior dcor is the source for client-oriented design services. Clients will be impressed with, and return for, the services they receive and the outcome they have enjoyed. Unlike other interior designers or stores, Nest Interior Decor is a pleasant and tasteful resource that encourages everyone in the process of decorating their home. Unlike using the services of other interior decorators, Nest Interior Decor allows the individual to participate in their design choices to the extent they choose, and realize greater value which they invest.
Sales strategy
The key to our sales strategy is referrals from pleased clients that are proud of the result Nest Interior Dcor provided them and pleased to tell their friends-people much like them. Keeping in contact with past clients to acquire repeat business and to remind them of this referral opportunity will be key. Sales activities will depend on creating awareness about the services Nest Interior Dcor offers and then build on each and every client as they make the decision to refer to others.
Sales Forecast
The sales forecast is broken down into three main revenue streams; residential consulting revenue, commercial consulting revenue, and product sales. The goal is to have these two revenue streams be equal by the second year, with product sales slower to secure during year one. The revenue forecast for the upcoming year is based on a modest 50% growth rate. The economic unpredictability adds to the difficulty of making these projections. Table of Sales Forecast is given below: Sales Forecast Sales Residential Consulting 50,000.00 80,000.00 170,000.00 Amount tk. Year 1 Amount tk. Year 2 Amount tk. Year 3
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Commercial Consulting Product Sales Other Total Sales Direct Cost of Sales Residential Consulting Commercial Consulting Product Sales Other Subtotal Direct Cost of Sales
20,000.00 30,000.00 0.00 100,000.00 45,000.00 20,000.00 20,000.00 15,000.00 100,000.00 Table: Sales by Year
Sales Programs
In brief, our marketing mix is comprised of these approaches to pricing, distribution, advertising and promotion, and client service.
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Pricing - Residential consulting will bill at an average of Tk.75.00 per hour and commercial consulting at Tk.100.00per hour.
Distribution - All services and products will be distributed directly through the personal contact. Advertising and Promotion We promote our service by giving wide and effective advertisement. Client Service Excellent and personalized client service is essential. This is perhaps the only attribute that cannot be duplicated by any competitor. The first goal is to recognize individualized needs of each client. If they are a repeat client, they benefit from the knowledge regarding their lifestyle and taste that was gained from the previous experience.
Strategic Alliances
Nest Interior Decor does have some dynamic alliances. Based on initial research and contacts, several architect firms are willing to refer clients to Nest Interior Decor, Other alliances include a retail store which focuses on gallery-type pieces for the home and office and is expected to refer clients. There is also a positive relationship with "Interior Fabricators" and this business is expected to be a referral resource. Strategic online alliances do not exist at this time. This will be an area of concentrated development for the future and is reflected in our milestone chart.
Milestones
The milestone chart below accompanied by the graphic outlines key activities that will be critical to Nest Interior Decors success in the coming year. Milestones Milestone Year Buying
Budget 20,000
Manager Antora
Department Products
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Program Advertising Seminar Schedule & Prep. Seminars Client Review/Analysis Year End Evaluation Totals
20/12/2012
31/12/2012
17,500 1,27,500
Antora
Management
Financial Plan
The initial investment will be tk. 40 000 00/= will be invested equally by partners each of tk. 10, 000, 00/= of per share. The goal is to fund the growth of the business from its earnings. The financial plan contains these essential factors:
A growth rate in sales of 25% for the year 2011 and 50% for 2012. An average sales per month that increases each year, averaging tk. 100000/= in the first year, Tk. 125000/= in the second, and tk. 175000/= in the third year. Continue to fund the growth of the business from the revenues it generates.
Financial difficulties and risks Slow sales resulting in less-than-projected cash flow. Unexpected and excessive cost increases compared to the planned expenses. Overly aggressive and debilitating actions by competing designers. A parallel entry by a new competitor further diminishing revenue generation potential. Determining the business cannot support itself on an ongoing basis. Dealing with the financial, business, and personal damage of the business enterprise failure.
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Break-even Analysis
The break-even analysis below is expressed as a per-month. This is based on average monthly billing; service earned, and costs per client. Break even point is monthly client basis. Given in next page:
Units (# of client) 0 1 2 3 4 5 6 7 8 9 10
Fixed Costs Tk. 50,000 Tk. 50,000 Tk. 50,000 Tk. 50,000 Tk. 50,000 Tk. 50,000 Tk. 50,000 Tk. 50,000 Tk. 50,000 Tk. 50,000 Tk. 50,000
Total Costs Tk. 50,000 Tk. 51,000 Tk. 52,000 Tk. 53,000 Tk. 54,000 Tk. 55,000 Tk. 56,000 Tk. 57,000 Tk. 58,000 Tk. 59,000 Tk. 60,000
Total Revenue Tk. 0 Tk. 50,000 Tk. 100,000 Tk. 150,000 Tk. 200,000 Tk. 250,000 Tk. 300,000 Tk. 350,000 Tk. 400,000 Tk. 450,000 Tk. 500,000
Profit (Tk. 50,000) (Tk. 1,000) Tk. 48,000 Tk. 97,000 Tk. 146,000 Tk. 195,000 Tk. 244,000 Tk. 293,000 Tk. 342,000 Tk. 391,000 Tk. 440,000
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Chart: Break-even Analysis At unit 2 our break even will occur. It means. Only two clients will per month will break even occur.
Important Assumptions
The following are critical assumptions will determine the potential for future success. A healthy economy that supports a moderate level of growth in the market. The ability to support a gross margin percentage in excess of 65%. Keeping operating costs low, particularly in the areas of product purchases ongoing monthly expenses. Receiving an initial payment for each project of 50% of estimated time and product purchases and collecting the balance of these revenues within 45 days of completing each project.
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General Assumptions Current Interest Rate Long-term Interest Rate Tax Rate Other Year 1 16% 15% 28.17% 0 Table: General Assumptions Year 2 16% 15% 28.00% 0 Year 3 16% 15% 28.17% 0
Start-up Summary
The following details the initial start-up expenses for Nest Interior decor. Most equipment costs are office related. Sample and display costs include books, samples and resources necessary to promote furniture, fabric and other home accessory products.
Nest Interior decor Start Up Expenses Schedule For the period ending 12/31/201
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Expenses Bank Fees Brochures Legal Office Expenses Office Furniture & Decoration Rent Trade & License fee Utilities: Gas & Electric Utilities: Telephone Total Expenses
Amount tk. 50,000 10,000 30,000 30,000 100,000 5000 20,000 1500 1000 240,750
( 240,750)
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Long-Term Assets Fixed Assets Less Accumulated Depreciation Net Fixed Assets Other Long-Term Assets Total Long-Term Assets Total Assets Liabilities Short-Term Liabilities Accounts Payable Other Short-Term Liabilities Total Short-Term Liabilities Long-Term Liabilities Loans Payable Other Long-Term Liability Total Long-Term Liabilities Total Liabilities Capital Owners Equity Retained Earnings Total Capital Total Liabilities and Capital Total funding
0 0 0 0
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Year 1 -569000
Year 2 12500
Year 3 316500
Operating Adjustments Depreciation (Increase) Decr. A/R (Increase) Decr. Inventory (Increase) Decr. Oth. S-T Assets (Decrease) Incr. A/P (Decrease) Incr. Oth. S-T Liabilities Total Operating Adjustments 5000 -20000 0 5000 50000 0 40000 5000 -50000 0 5000 100000 0 60000 5000 -60000 0 5000 150000 0 100000
-529000
72500
416500
Investing / Financing Activities (Purchase) Sale. Fixed Assets (Increase) Decr. Other L-T Assets (Payment) Issuance Loans (Decrease) Incr. Other L-T Liabilities Increase (Decr.) Owners Equity Total Inv. / Fin. Activities -20000 0 0 0 0 -20000 -10000 0 0 0 0 -10000 -5000 0 0 0 0 -5000
-549000
62500
411500
4000000 3451000
3451000 3513500
3513500 3925000
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