A Business Plan

on
Boutique House
Course Title: Entrepreneurship Development
Course Code: MKT-323

Submitted By
Md. Ali Hossen Ridoy
Id No: R-172567
3rd Year 2nd Semester
Department of Marketing
Islamic University, Kushtia, Bangladesh.

Submitted to

Dr. Dhanonjoy Kumar

Assistant Professor
Department of Management
Islamic University, Kushtia, Bangladesh
Executive Summary:
This report focuses on the different compensation practices designed by a
company called “Inter fashion Boutique” for different levels of employees. In this
report I have discussed about the organization, its vision, mission, product and
service offerings, its organogram and the total compensation package it offered. I
have also focused about the financial projections of this organizations with cash
flow, total capital, balance sheet etc. Here, I can try to find out that what
determining factors are affected this compensation programs in our country
perspective, because compensations system varies country to country. While
determining compensations, it must consider its other competitor’ position and
market trends. So comparing to other rivalry it try to determine its compensation
and other allowance with basic pay, because this company is a retail organization.

Compensation program from the perspectives of both the employees and the
employers. Later, I came up with few recommendations of this business that can
utilize to enhance its employee satisfaction which increase its productivity. I think
that at last its effort will bring fruitful ending.

So it offer our product in a different way and it creates a unique position of its
brand to the target customer. Recently it Plan to run 1 outlays and expand 3 more
outlays in Dhaka city, Siddheswari (First branch), Bannai branch (Proposed).And
the other two branches in Dhanmondi (Proposed). This organization is planning to
establish 3 more outlays in Chittagong and Rajshahi. It is also trying to expand its
business in out of the country. At present this organization hope to capture the
40% of the market share in this sector (Estimated). Though it has some limitation
but it is sure that it can be able to overcome that and touch the number 3
position providing better compensation package.
Table of contents

1 Introduction

2 Mission Statement

3 Organization structure

4 Product offering

5 Financial Structure

6 Marketing activity

7 SWOT analysis

8 Compensation package

9 Conclusion

1. Introduction
Entrepreneurs are frequently thought of as national assets. Great entrepreneurs
have the ability to change the way we live and work. If successful, their
innovations may improve standards of living, and in addition to creating wealth
with entrepreneurial ventures, they also create jobs and contribute to a growing
economy. New products and services created by entrepreneurs can produce a
cascading effect, where it stimulates related businesses or sectors that need to
support the new venture, furthering economic development.

Time of establishment 15 January,2016

Type of business Fashion and Jewelry Business
Total Branch 4 (1st at Siddheswari in 2016, 2nd at
Dhanmondi in 2016, Banani and
Rifles’s square in 2017.
 2. Mission Statement

This company wants to succeed through a strong customer loyalty. For this, it has
a mission and vision. Vision is a long term outlook of an organization which is
possibly impossible to achieve. On the other hand, Mission is the part of vision
which can be practiced or implemented. The vision and mission of “INTER
FASHION BOUTIQUE” are given below-

 Vision
 Inter Fashion Boutique has a vision to establish them as
Bangladesh’s leading famous fair trade fashion house and to
remain market leader throughout its business.
 It expand its business in international area. Inter Fashion
House has a dream to develop more artisans of Bangladesh
and make them self-dependent and attract more and more
international customers towards Bangladeshi culture.

 Mission
 To become one of the 3rd business tycoon in this sector of
Bangladesh.
 Providing Modern and latest designed clothing for men and
women.
 To maintain and expose the traditional culture of
Bangladesh
 Creating loyal customer by fair pricing with quality product.
 Organizational Structure

Managing Director

General Manager Deputy General Manager

Chief operating Manager
officer (Finance & accounts) HR training

General Manager General Manager Assistant Manager Senior Manager Senior Manager
Administrative & Design Merchandising Quality control IT
services

E-commerce Marketing
Executive officer
Inventory control

 Other Employee

Designer 30
Sales personnel 52
Cutting master 40
Tailors and others 33
Total employee 155
Product Offering
  Men’s clothing and accessories
 Women’s clothing and accessories
 Kid’s clothing and Toys
 Shoes ( for men,women and kids)
 Home Décor
 Office accessories
 Books and Stationary
 Nakshi kantha
 Wedding Clothing and Accessories
 Jewellery
 Taaga.

Financial Structure
Inter Fashion Boutique is financially strong. It’s a partnership firm. It is not public limited
company so it’s still does not offer shares to the public and doesn’t published its annual financial
report to the public. It earns approximately 70% profit annually.

Inter Fashion
Dresses Customers TK
Boutique

Delivery

Profit

 Financial Objectives
Inter Fashion
 To attain 95% sales growth rate by the year 2021 Boutique House
 To lever up the business at year 2020
 To attain net profit margin of 80% in 2016, 85% in 2017, 90% in 2018 and
93% in 2019.
  To offer quality products at a competitively lower price.
 To maintain strong cash flow blances.

Capital Requirements

It started with 1,00,000,00 taka. It’s a

partnership firm. There are six partners.
All are invested taka 70,00,000. And rest
30,00,000 taka invested from bank.
 Invested from own source:

Investors Amount (Tk)

Sonia Akter (20%) 14,00,000
Tania Ahmed (20%) 14,00,000
Jufrin Akter (30%) 21,00,000
Susan Farabi (15%) 10,50,000
Shahidul Islam (15%) 10,50,000
Total 70,000,00

 Investment from Bank

It took a long term bank loan from BRAC Bank, 13,000,00 taka at the interest rate
16% but from the next year it will pay rate at 17%.

Interest rate

2016-20 16.5%

2021-24 17%

 Start-up requirements:
Start-up expenses
Legal TK 3,00,000
Rent TK 5,00,000
Insurance TK 2,00,000
Setup fixtures TK 3,00,000
Equipment TK 10,00,000
Other TK 4,00,000
Total start-up expenses TK 27,00,000
Start-up assets TK 10,00,000
Cash required TK 5,000,00
Start-up inventory TK 4,00,000
Other current assets TK 5,00,000
Long term assets TK 15,00,000
Total start-up assets TK 39,00,000
Total start-up requirements TK 66,00,000

 Start-up Funding
Start-up expense to fund TK 27,00,000
Start-up assets to fund TK 39,00,000
Loans TK 30,00,000
Investment TK 70,00,000

Inter Fashion Boutique

Cash Flow Statement
(Estimated)
For the year ended 31st December, 2016
Particulars TK TK
Cash at hand (beginning of the 5,00,000
year)

Cash flow from operational activities

Cash receipt from customers 30,00,000

(-) cash paid to suppliers and 25,00,000
employees(15,00,000+10,00,000)
 Cash generated from operations 5,00,000
Cash flow from Investment activities
Addition to equipment 15,00,000
Purchasing securities 10,00,000
Net cash flow from Investment (25,00,000)
activities
Cash flow from financial activities
Borrowing 30,00,000
Net cash flow from financial 30,00,000
activities
Net increase in cash at hand TK. 15,00,000

Inter Fashion Boutique

Income Statement (Estimated)
For the Year Ended December 31, 2016.
Particulars Dr. Cr.
Revenues 95,00,000
Gross revenues
(-) Expenses 5,00,000
Advertising
Salaries 42,84,000
Legal and Professional 3,00,000
Services

Rent 3,00,000
Materials 1,71,000
Office Expenses 1,00,000
Utilities 2,00,000
Commissions 5,00,000
Bank interest 4,95,000
 Interest of capital 7,00,000
Entertainment 1,00,000
Insurance 2,00,000
Sales transportation 1,50,000
Total Expense 80,00,000
Operating Income 15,00,000
(-) Provision for income 1,50,000
Net Income TK. 13,50,000

Inter Fashion Boutique

Balance sheet
(Estimated)
For the Year Ended 31 December, 2016
Particulars Tk Tk
Assets
Current assets
Cash 15,00,000
Bank balance 10,00,000
Ending inventory 5,00,000
(finished products)
Sundry debtor 4,00,000
Advance expenses 1,50,000
Other current assets 5,00,000
Total current assets 40,50,000
Investment (long term 15,00,000
assets)
All fixed assets 35,00,000
Goodwill 9,50,000
Primary Expense 20,00,000
Total fixed assets 79,50,000
 Total Assets 1,20,00,000
Capital and liabilities
Current liabilities 5,00,000
Long term liabilities 30,00,000
Provision for income 1,50,000
Total liabilities 36,50,000
Capital 7,00,000
(+) Net income 13,50,000
Total equity 83,50,000
Total liabilities and 1,20,00,000
capital