ASSIGNMENT

On Business Plan
Course Title: Entrepreneurial policies & Practices Course Code: MGT-404

Submitted to:
Md. Rafiqul Amin Lecturer in Management Department of Management (BUBT).

Submitted by:
Ronay Das ID: 08092101349 Intake -18th sec-08

Bangladesh University of Business & Technology

Date of Submission:10.09.2011

Business Plan

Venture: Solar Power Source of new idea: Government, Existing distribution channel Method generating idea: Brain storming

Introductory page

Bangladesh Advance Technology (Solar power solution) 29, kallyanpur,Mirpur road,Dhaka Nature of Business:
Partnership Business

Statement of financing need:

To running my business I have to need fixed capital and Pre-production Capital.

Fixed Capital: Furniture, Equpment,Computer, Total Capital FIXED

Capital-80,000

Pre-production Capital: Rent agreement,Trade licence ExportImport Licence and other expense. Total Pre-production Capital140,000

Executive Summery
Bangladesh is developing country. Its develop has hampered in many cause. Or problem one of the main problem is electricity. Electricity problems hamper our developing process. To reduce electricity problems and self electricity produce, Here I try to analysis marketing plan, production plan, financial plan. In business our total investment 7,00,000. We hope our business helps to reduce electricity problems and self electricity produce as well as social responsibility for the society

Industry Analysis:
Future outlook and trends:
At present this types of business is increasing day by day. This business future is very bright. Because our natural gas and all types of natural energy will be finished. Our all power plants depend on natural gas. It is anxiety for us. So we must think alternatives source. In developed country already use this system .But it is new idea or new thinking for our country. Government also encourage to use this system. So this business future outlook and trends is very well.

Analysis of competitors:
It is evaluated by Potters five forces. Thats are 1. Threat of new entrants 2. Threat of substitute product 3. Bargaining power of buyers 4. Bargaining power of suppliers 5. Rivalry among the existing competitors.

1. Threat of new entrants:

In my business threat of new entrants is high. Due to easy of government. rules and regulation. But here market exist is so much low. So Competitors are increased day by day.NGO are now main threat for my business.

2. Threat of substitute product:

Substitute product of my business are Charger light,DESCO, DESA. At present their capacity is not fulfilled. Thats why threat of substitute product is low.

3. Bargaining

power of buyers

At now main problem is electricity. So bargaining power of buyer is low. But my product price is high. so I want to sell my product in installment process.

4. Bargaining

power of suppliers

Bargaining power of suppliers is high .they control the Market price.

5. Rivalry among the existing competitors. Solar power business is growing business. For staying in the market is so tuff for myself. By using high technology we will be stayed for long time.

Market segmentation:
In my business Market segmentations are: 1. Rural area

2. Urban area: Industrial area, Office Building, Flat My main area is urban area specially industrial area, office building

Industry and Market Analysis:

At present my target customer is industrialist, high rise building, office building and flat. In future I want to increase my profit.

Description of the Venture

Products= Solar power, LED Light

Service= to setup solar power system, providing LED light system

Size of Business: Small business

Office Equipment and Personnel= Office equipments are computer, equipment.

Personnel = Office pain-1

Technical expert-3

Background of Entrepreneurs:
Ronay Das Graduation complete from BUBT Age: 22 Istiak Tanvir Nishat Graduation complete from Eastern University Age: 22

Production Plan
In my business production plan fully depend on according to demand and supply. Customer convinces is the main source of sales. More customer convince increase my sales

Size of business: Small business Name of suppliers of raw Materials: Solar panel, LED light comes from China

Suppliers name: Hong Kong trade International

China, Phone: 710820

Marketing plan
Pricing: Pricing system of my product is installment process. If any one purchase our product than payment system procedures is firstly payment 60% and 40%is paid in installment.

Distribution: Distribution system is directed. Promotion: Advertising in Newspaper, Banner, Sign board, Personal selling.

Product Forecast: In future we want to purchase high tech solar panel.

Control: To control all marketing plan we should consider distribution channel ware
house pricing strategy etc. If we control above this elements. We will be achieved success in future.

Organizational Plan
Form of ownership: Form of ownership is partnership way.

Identification of partners or principal share holder.

1. 2. 3. 4. Profit is divided by equally. Business is running by two partners. Every month owner will take 20,000 salary. All problems or uncertain problems or Business related problem is solved by partnership act- 1932.

Authority of principal:
1. Two partners are beard equal authority. 2. All decision in Business related is taken by two partners.

Roles and responsibility of members of organization.

Every one responsible for his work even owners. Every one accountable for his duty

When any one purchase anything we must be submitted the cash memo, Memorandum, Bill. All information of the Business is secreted. For business benefit we can flash information otherwise not.

Assessment of Risk

Evaluate weakness of business:

1. 2. 3. 4.

Poor capital. High cost of product import. Installment process. Poor expert.

New technologies we want to use latest technology in solar panel system. Due to capital crisis at present we cant use new technology. We hope in future we use new technologies.

Cost of production statement (For two years)

Particulars Direct material Purchase Solar (8x 24x 20000) Other accessories Shipping Cost Carrying cost Tax & Duty Cost of goods sold

Tk.

Tk.

Tk.

38,40000 20,000 40,000 30,000 1,000 39,31000

Marketing & Selling overhead Administrative cost Stationary Advertising Other expense Employee salary 16,000 2,000 20,000 10,000 60,000 1,08,000 40% Profit Total Sales 40,39,000 16,15,600 56,54,600

Financial Plan (For two years)

Particulars Solar panel (8 x 24 Month x 20,000) Interest expense Other accessories Shipping cost Carrying cost Tax & duty cost Export & Import License Trade License Loan (17%) Computer Furniture Equipment & Machine Rent Agreement (for five years) Interest payable Salary Other expense Stationary Advertising cost Administrative expense Taka 384000 85000 20000 40000 30000 12000 80000 5000 500000 20000 25000 20000 100000 8000 60000 10000 2000 20000 16000

Pro-forma Income Statement

Particular Sales (-) Cost of goods sold Gross profit Administrative expense Stationary Other expenses Salary Advertising cost Rent Agreement Total Operating Expense 56,54,600 39,31,000 17,23,600 16,000 2,000 10,000 60,000 20,000 40,000 1,48,000 15,75,600 Interest expense Profit before tax Tax (20%) Net Profit 85,000 14,90,600 2,98,120 11,92,480 Tk. Tk.

Pro-forma Balance Statement

Particular Fixed asset Equipment & Machinery 20,000 (-) Depreciation 500 19,500 Computer (-) Depreciation Furniture (-) Depreciation Export & Import License Trade license Current Asset Rent Agreement Liabilities and owner equity Loan (5 years) Interest payable 2,00,000 8,000 60,000 20,000 1000 19,000 25,000 500 24,500 80,000 5,000

Tk.

Tk.

2,08,000

2,08,000

Source and application of capital:

In business we are invested 700000

Internal Source:
Ronay 100000 Nishat 100000

External source:
Bank Loan 500000 We have taken loan from AB Bank. For small business purpose. Here interest rate 17%. We have shown some documents that are given bellowTrade license. Export & Import license Partnership agreement documents. Rent agreement documents. Pro-forma income sheet & balance sheet

First we fill up the application form with attached above those documents. Then they visited our office and observation our documents. then they will give us loan.