Student Name: Sumaiya Kalammeah

Student ID: 10136833

Course Code: BUS 101

Assignment Question: Starting a new business requires careful planning and strategy. Consider a
business which you wish to start, prepare a basic business plan showing clearly how you will start-up your
business and manage finances from an Islamic perspective. Point out clearly the risks involved in the
business you intend to start.

Attempt Count: 1

Start-up Business Plan

Executive Summary

Sylhet is a small city where education was not regarded as a necessity in former times because most of the
families had someone from the family living overseas and relied on their income. However, in recent times
people are becoming more aware of education and how it plays a vital role in our lives. In addition to this,
it’s developing at quite a fast pace so people from other areas have shifted to the city due to increasing job
opportunities. This resulted in rising demand of new schools which means the need for stationaries is also
rising as they are supplementary.

Trust Enterprise is a family-run start-up business of three people dedicated to providing stationary products
with best quality and reasonable price in the market.

Our main aim is ensure students, teachers and schools are getting the materials needed for their studies, job
and daily operation respectively. We will also provide delivery service for schools with big orders

The nearest Stationary shop is 1 km away from this. We believe, consumers will make most of their
purchases from us as we provide the facility of printing and binding books which our competitors do not
have.

Objectives

 To attract a minimum of 60 customers per day for purchases

 To get contracts from schools on regular basis
 To ensure satisfaction of customers with less than 1 percent complaints
 To generate positive cash flow from operations and at least 30 percent net profit to sales

Page | 1
Mission

Trust Enterprise’s mission is to offer the local students, teachers and schools with stationary products of best
quality in reasonable price and reach the level beyond our customers’ expectations.

Trust Enterprise will use its strategy and staff to ensure that each and every customer of ours is given equal
priority and their need always comes first. We will also ensure the products are delivered at the right time.

Vision

Our vision is to become the first choice for stationary purchases in the area and a respected store as
measured by our customers, our staffs and the local community. In addition, we want to constantly be
quicker, better and innovative. All the members of Trust Enterprise promise to work as a team with strong
commitment, trust and loyalty.

Keys to success

Our ways of moving upward the ladder to success are:

 Excellent product and quick delivery service that will help in building and retaining customer loyalty
 A location that will be visible to the customers and close to the main road
 Good teamwork and management ability to successfully run similar business.
 Our desire to continuous improvement and provide high standard services

Start-up costs and funding

We have done extensive research on the ideal location for nearly 8 months and finally found one in Madina
market which is a densely populated area of the City.

We have estimated total start-up costs of 6, 00,000 taka. The start-up capital will be used for legal costs,
decoration, banner, fixtures and fittings, printer, photocopier, sundry expenses, inventory on hand at start up,
rent, promotion, business permission and other costs.

Sumaiya, Waleed and khalid as co-owners will provide the cash for startup. Each of them will contribute
2, 00,000 tk from their savings (33.33% ownership each).

Company Ownership

Trust Enterprise will be partnership business owned by three siblings – Sumaiya, Waleed and Khalid. Each
sibling will possess 1/3 of ownership.

Page | 2
Products and Services

We are planning to provide a wide range of products to our consumers. The list is given in the table below:

Pens- blue, black, red Highlighter Permanent marker Pencil and sharpener

Sticky tape and Correction pen/ fluid Plain paper (for Notebooks, ruled
packing tape printing) paper, binder books

Art book Color pencils Color pens Marker colors

Color glitter pens Glue Eraser Rubber bands

Paper clip Stapler and staples Hole puncher folders

Drawing pins Folder dividers Hanging files Filing trays

Sticky labels Index cards Label maker and Box cutter/ Utility
spare tape knife

Scissors Calculator Envelopes memory sticks

Cells and Batteries Calendar Wall Planner Desk pad

Whiteboard markers Whiteboard duster Color paint Paint brush

Our Services include:

 Delivering products to schools or other institutions if purchases amount exceeds 2000 taka
 Printing and binding booklets based on order

Market

Madina market is a growing middle-to-upper class area and most of the residents are families of 5 or more.
The average income for the area is nearly 3, 60,000 taka annually. There are nearly three hundred and fifty
businesses close to our location.

As the population is growing with time, the opportunity to serve the residents has increased as well. We will
sell to individuals and also accept large orders with delivery service.

Our main market segments are: (a) Primary and high school students (b) University Students (c) Teachers
and (d) Schools and other organizations for large orders

Strategy

Page | 3
Our strategy is building a strong customer base by having large number of permanent customers in the
market. We want our business to be considered as the first option for all the stationary related needs for the
people in this area and nearby areas.

Management

Allocation of resources, profitable operations and paying our suppliers on time and abiding by laws and
regulations is our management’s top priority. Our management’s philosophy is based on team work,
responsibility and mutual respect. We will operate in a friendly atmosphere that will encourage our
customers’ opinion.

Waleed will be the manager of Trust Enterprise assisted by his brother khalid and his sister Sumaiya.
Waleed has previous experience of 3 years, working in a large stationary business which will be a plus point.
He also holds a diploma in Management and Hospitality. In addition, Khalid has a previous experience of
owning his own business and knows how things are to be done along with a diploma in Accounting. Also,
Sumaiya has previous experience of 5 years, working in promotion department of a large company. This will
enable in increasing awareness of our product and reaching more people.

Financials

According to our estimates, Trust enterprise is expected to maintain a good financial position over the next 5
years. We are looking forward to making profit in the first year of operation with gradual increase in profit
in the next four years as we build a strong customer base.

We have to make sure that we will have sufficient cash on hand to pay or suppliers and others and meet
unexpected needs of cash. Our conservative projections indicate that our business will be able to generate
positive cash flows and sufficient cash reserves.

The forecast ratio analysis clearly shows that Trust Enterprise’s financial position is expected remain strong
as measured by its liquidity, long-term solvency and cash flow adequacy ratios.

Risks

The management of a business is responsible for identifying what could possibly go wrong, evaluating
which risks should be dealt with and taking corrective measure to avoid adequate prevention, control and
Page | 4
risk reserves. We have identified many risks that are connected with our business project. We have grouped
all the risks as follows:

a) External Risks. (These risks are not within the businesses control and are more difficult to prevent
and control)

Economic depression – Current trend indicate that the economic worsening is reaching its bottom and
likelihood is that the recovery method can begin presently. However, without any doubt, it’s a slow process
which will take many years until complete recovery and full growth are attained.

Competition – As the population is constantly rising, chances are high that new competitors can arrive
within the relevant marketplace. However, we will stay as our customers first and foremost preference by
constant improvement in management strategy and cost control techniques. In addition, the prediction of
increasing population will further help us to maintain and boost sales.

Suppliers – Our business does not rely on a single supplier or small group of suppliers. So, the risk of facing
supply constrictions is low.

Location – The chosen location will leased for minimum seven years with a high possibility of extending the
lease period next time for another similar span of time.

b) Internal Risks. (These risks are from inside the business and are under control.)

Manpower – Our workplace does not require much skill which means it will be easier for us to find
employees easily to whom we will initially familiarize with the business so that they feel motivated and a
part of it.

Cash flow deficiency – Our main concern will be to have sufficient cash on hand to satisfy our payment
obligations and be ready for surprising desires of cash. Our predictions indicate that our business is ready to
get positive flow of cash and sufficient money reserves to scale back the danger of cash flow deficiency.

Management – Sumaiya, Waleed and khalid have tried expertise in successfully running businesses in the
city possessing relevant skills.

References

Page | 5
1. Rampton, J. (2019). 7 steps to a perfectly written business plan. Retrieved from
https://www.entrepreneur.com/article/281416
2. Parsons, N. (2019). How to write a business plan. Retrieved from https://articles.bplans.com/how-
to-write-a-business-plan/

Page | 6