EXECUTIVE SUMMARY

This group field assignment on a small business financial survey includes how a daily vegetable hawker finances their business. For this report we have interviewed 4 vegetable hawkers from Bashundhara Bazar and Banasree Bazar. After collecting and analyzing the data, we have found that the financial perspectives of each of the 4 hawkers are almost more or less the same, i.e. funds with which they have stared their business, equity funds and debts, risks, expansion plan, etc. So for the data collection and analysis part we have randomly selected ones information. From the analysis we have found that 4 of the vegetable hawkers are in this business for a long period of time and each of them have started their business with their personal funds, which means Debt funds are nil. So, they are quite flexible with their business. Whatever they earn goes in their pocket, except of some expenses. It is also found that besides investing for purchasing the raw materials they carry extra Tk.150 to Tk.200 cash for other activities. They price of the goods they sell is determined by the market and they their cash Conversion Cycle is very efficient, i.e. they are recovering their cash on a daily basis with profits. Besides they have got very little scope of expanding their business as their profit margin is low. The 4 daily hawkers who we have interviewed have desire to expand their business. Though this is their only business, each of them mentioned that they are quite happy and what they earn is quite enough to support them through out the year.

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DATA COLLECTION
We have interviewed 4 vegetables hawkers (from Bashundhara and Banasree Bazaar) based on their business and financial matters. The collection of interviews is shown later at the appendix part of the report. After gathering the 4 interviews, we have randomly selected a particular interview to do our financial analysis. The statistics showed that almost each and every one of the vegetable hawkers has more or less the same kind of information pattern. Limitations: Scope: Due to time constraint, we could not do thorough analysis of the interviewed data. The group has to convince the hawkers for the interview session. As this report is written on the basis of interview there is a question of reliability of the interview, provided by the hawkers. As the hawkers run day to day business, they are very busy during their business time and they did not want to give enough time for the interview session. The hawkers were not willing to disclose their proper information (income source).

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DATA ANALYSIS
Net Working Capital = Current Assets Current Liabilities. Net Working Capital = (Tk. 2,000 Tk 0) Net Working Capital = Tk. 2,000 15 years back Day 1 Day 2 300 300 + 0 0 300 300 + % % 300 + 300 + Present Day 1 2,000 0 2,000 15 % 2,300 Day 2 2,000 0 2,000 15 % 2,300

Started with Cash Equity or Debt Inventory bought Rate of Return Ending cash balance

15 years back he started saving a little amount from this ending cash balance (Tk. 300 +) to reach at his present fund Tk. 2,000. Notes: Ending cash balance (Present): Out of Tk. 2,300, he is reinvesting Tk. 2,000 on the next day. This Tk. 300 is his profit that is kept aside. As he is not reinvesting anything from his profit, anything left after daily business and personal expenses is additional to his daily ending cash balance. E.g. Beginning Cash Balance Add: Daily Profit Less: Expenses: Business expense Personal expense Ending Cash Balance Day 1 * 1,000 300 (100) (50) 1,150 Day 2 1,150 300 (100) (50) 1,300 Day 3 1,300 300 (100) (50) 1,450

* Suppose this Tk. 1,000 was made previously by the additional to his daily ending cash balance.

CASH CONVERSION CYCLE

Cash Conversion Cycle is the number of days between paying for raw materials and receiving cash from selling goods made from that raw materials.

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The higher the number, the longer money is tied up in business operations and unavailable for other activities such as investing. Cash Conversion Cycle of this vegetable hawker: Cash Conversion Cycle = (Days of Sales Outstanding + Days of Sales Inventory Days of Payable Outstanding) Cash Conversion Cycle = 1 day + 0 day 0 day Cash Conversion Cycle = 1 day.

Cash

Inventories

Cash Retained Earnings

Dividend

Net Income

Income Statement Of a Daily Vegetable

(Figures Taka)

Hawker

Net sales Cost of Good Sold

2,400 (2,000)
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Gross Profit Operating Expenses : Transportation Cost Food and Refreshment Other Expenses Total Operating Expenses Net Income Recommendation:
Though all hawkers business strategy is same but they can maximize their value by developing certain activities. 1) They can invest more money to expand their business. 2) For expanding business, it is essential to diversify their business product to get higher profit. 3) It is better to borrow some money with minimum interest or without interest to expand their business. 4) They must keep in mind that they should try to achieve economies of scale according to market demand. 5) For expanding business, they can hire unpaid family member to increase their sales in different location. 6) They should minimize their refreshment cost to increase profit. We think, being a poor, they are just wasting their money for smoking.

400 80 80 20 (180) 220

APPENDIX

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Name: Dullal Business: Vegetable Hawker

1. How long is he/she in business? ------------2. How much funds did he/she start with? Today their 3. 4. 5. 6. funds are? ---------------------------Equity or Debt funds? ------------------------------------Repayments and Terms? ---------------------------------Interest rates? -----------------------How do they carry out their business/trade? a. What time do they start? ------------------------b. How much cash they invest in the morning? -c. How much cash do they carry with them? Why? ------------------------

2 years He stared with Tk. 1500 cash and today his fund is Tk. 1500. Equity none No interest 7-8 in the morning He buys his vegetable at night 10 pm and invest all his 1500 He keeps 100 tk with him in the morning as changes

d. Where do they sell? Why? ----------------------- He sells at purbo Rampura are and some e. How do they price their goods? ----------------f. How long does it take them to recover their cash? -----------------------------------------------7. What are the risks they face? a. Business risks? -----------------------------------time in banasree as he lives near by. Keeping a little profit and by 12 at most if not for some reason then sits at evening to 9 pm As he has no fix place to sell his product he is always at risk eradication

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b. Political risks? -------------------ss

No

c. Mastaans / Criminal risks? ---------------------8. Expenses in carrying out their business? a. Business Expenses? -----------------------------b. Personal Expenses? ------------------------------9. Earnings Net Income? ----------------------------------10. Can they increase their business? How? What would they need? ----------------------------

He have to pay 10 taka everyday to the police and some at paikary bazar Around 100 tk for rent of ven 50 tk 200-300 tk He wishes to buy a fix place in a bazaar as it is uncertain not to have a place and may not find a place to sell. Which will require 5000- 8000 taka Yes, this is his only business and it is enough to support him through out the year.

11. Is it their only business? Is it enough to support them? Through out the year? -----------------------------

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Name: Siddiqur Rahman. Business: Vegetable Hawker

1. How long is he/she in business? ------------------------2. How much funds did he/she start with? Today their funds are? --------------------------------------------------3. Equity or Debt funds? ------------------------------------4. Repayments and Terms? ----------------------------------

5 Months He stared with Tk. 2500 cash and today his fund is Tk. 3000. Equity Since he is not in debt, so he has no repayments and terms. Nil.

5. Interest rates? ----------------------------------------------6. How do they carry out their business/trade? a. What time do they start? ------------------------- 5:00 am b. How much cash they invest in the morning? -- Tk. 3,000 c. How much cash do they carry with them? He carries Tk. 200 to Tk. 300 with. This cash Why? ----------------------------------------------is for giving changes to customers, taking his breakfast and refreshments etc. d. Where do they sell? Why? ----------------------- He sells at Banasree Residential Area by a van, because this is the place where he lives and also convenience for him to get customers e. How do they price their goods? ----------------easily. Since he sells in Banasree Residential area, where there are other hawkers selling same goods, so the price is determined by the market. f. How long does it take them to recover their

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cash? -----------------------------------------------7. What are the risks they face? g. Business risks? ------------------------------------

By 8-10 pm Market price fluctuation. May have to sell at reduced price and sometimes he is unable to sell his whole products. No 10-20 tk. Per day Tk. 80 to Tk. 100 Expense of van Tk. 50 Tk. Tk.500 to Tk. 600 Yes, He wishes to purchase a space in Banasree Kacha Bazar. For his business increase, he would need an investment of Tk.40, 000 to Tk.50, 000. Yes, it is his only business and it is enough to support him through out the year.

h. Political risks? ------------------------------------i. Mastaans / Criminal risks? ---------------------8. Expenses in carrying out their business? j. Business Expenses? -----------------------------k. Personal Expenses? ------------------------------9. Earnings Net Income? ----------------------------------10. Can they increase their business? How? What would they need? ---------------------------------------------------

11. Is it their only business? Is it enough to support them? Through out the year? -----------------------------

Name: Harun Miah. Business: Vegetable Hawker.

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1. How long is he/she in business? ------------------------2. How much funds did he/she start with? Today their funds are? --------------------------------------------------3. Equity or Debt funds? ------------------------------------4. Repayments and Terms? ----------------------------------

7 years He stared with Tk. 600 cash and today his fund is Tk. 2500. Equity Since he is not in debt, so he has no repayments and terms. Nil.

5. Interest rates? ----------------------------------------------6. How do they carry out their business/trade? a. What time do they start? ------------------------- 6:00 am b. How much cash they invest in the morning? -- Tk. 2,500 c. How much cash do they carry with them? He carries with him Tk. 100. This cash is Why? ----------------------------------------------for giving changes to customers and other expenses. d. Where do they sell? Why? ----------------------- He sells at Badda bazaar because this is the place where he could easily get customers. The other reason is he lives e. How do they price their goods? ----------------nearby. As he sells in a bazaar and there are other hawkers selling same goods, thats why the price is determined by the market. f. How long does it take them to recover their cash? -----------------------------------------------7. What are the risks they face? a. Business risks? -----------------------------------b. Political risks? ------------------------------------c. Mastaans / Criminal risks? ---------------------d. Other risks? ---------------------------------------8. Expenses in carrying out their business? a. Business Expenses? -----------------------------b. Personal Expenses? ------------------------------9. Earnings Net Income? ----------------------------------10. Can they increase their business? How? What would 1 day. Price and sell fluctuation. no Sometimes they may be the victim of mastaans. Sometimes give bribes to police near the wholesale market. Tk. 100 to Tk. 200 Tk. 50 to Tk. 100 Approximately 500 Tk. According to his opinion, there are purchasing a space. (may require around Page 10 of 14

they need? --------------------------------------------------- chances to expand his business by

11. Is it their only business? Is it enough to support them? Through out the year? -----------------------------

50000) Yes, it is his only business and is good enough to support him through out the year.

Name: Abul Hasan Business: Vegetable Hawker. 1. How long is he/she in business? ------------------------2. How much funds did he/she start with? Today their funds are? --------------------------------------------------3. Equity or Debt funds? ------------------------------------4. Repayments and Terms? ---------------------------------5. Interest rates? ----------------------------------------------6. How do they carry out their business/trade? a. What time do they start? ------------------------b. How much cash they invest in the morning? -c. How much cash do they carry with them? Why? ----------------------------------------------3years He stared with Tk. 1500 cash and today his fund is Tk. 3,000. Equity Since he is not in debt, so he has no repayments and terms. Nil. 5:00 am Today Tk. 2800-3000 He carries Tk. 200 to Tk. 250 with him for giving changes to customers, breakfast and other expenses. d. Where do they sell? Why? ----------------------- He sells at Mirpur bazaar because this is e. How do they price their goods? ----------------the place where he lives. Since he sells in a bazaar, where there are other hawkers selling same goods, so the price is determined by the market. Page 11 of 14

f. How long does it take them to recover their cash? -----------------------------------------------7. What are the risks they face? a. Business risks? -----------------------------------b. Political risks? ------------------------------------c. Mastaans / Criminal risks? ---------------------d. Other risks? ---------------------------------------8. Expenses in carrying out their business? a. Business Expenses? -----------------------------b. Personal Expenses? ------------------------------9. Earnings Net Income? ----------------------------------10. Can they increase their business? How? What would 1 day.

Price and sell fluctuation. May be unable to sell whole goods some day. Sells sometimes interrupted due to hartal. Risks of mastaans (sometimes). Sometimes give bribes to polices Tk. 250 to Tk. 300 Tk. 100 to Tk. 120 Tk.400 to Tk. 500 Possibilities to increase his business by hawker sits with their goods. (may require

they need? --------------------------------------------------- purchasing a space in a bazaar where the 35000-45000) Yes, it is his only business and sometimes it is not enough to support him through out the year because of his large families.

11. Is it their only business? Is it enough to support them? Through out the year? -----------------------------

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