Executive Summary

     In January, 2008, Mr. Ashik Mahmudul Hoque will be established a paper
furniture manufacturing company. The company name will be Paper furniture
which will be located in Dhanmondi.

Paper Furniture has been riding a growth spurt, having discovered the high-
end direct mail channel that gave us a push to new potential volumes through
channels. Bolstered by appearances in specialty catalogs, we were able to
develop another additional channel through distributors of home furniture that
sell directly to customers.

We also expect to be profitable as never before. In all, this plan is a healthy

company with good growth prospects, looking to manage its orderly growth in
the near future.

1.1 Mission

Paper Furniture will create stylish paper made furniture with the modern
technology in which real people can live happily. We will always provide the
best possible value to our customers who care about quality home
environments. We will seek fair and responsible profit, enough to keep the
company financially healthy for the long term and to fairly compensate owners
and investors for their money and risk.

 Customer Focused : To take customers interest at heart

 Excellence in Design : To strive for high creativity and conceptual
breakthrough in design Service
 Uncompromising Quality Standard : To constantly set high quality
standards for products
 Advanced Technology : To leverage on advanced technology for
competitive advantage

1.2 Keys to Success

 Uncompromising commitment to the quality of the end product: quality raw

material, quality workmanship, quality design, quality of end result.
 Successful niche marketing: we need to find the quality-conscious customer in
the right channels, and we need to make sure that customer can find us.

 
 2.0 Company Summary

     

Paper Furniture is a privately-owned specialty manufacturer of high-end home

furniture for the family people. Our customers are in all levels of upper class
people who can afford very high quality home furniture, plus a growing portion
of high-end home environment.

2.1 Company Ownership

Paper Furniture Company will own entirely by Mr. Ashik Mahmudul Hoque. It
will be established in 2008.

2.2 Basic Data of Company

Name of the Company : Paper Furniture Ltd.

Company Status : Private Limited Company

Head Office : 12/A, Mohammadpur  Dhaka-1207

Display Center : Road#15, house # 122, Dhanmondi C/A

Factory : 12/A, Nurjahanroad, Mohammadpur, Dhaka-1207

Contact Numbers. : Tel: 9893148, 8850472

Fax: 880 ? 02 ? 8850474
E-mail: Paperfurniture@yahoo.com

2.3 Major Machinery

 

 Tube Bending Machine SB50NC

 “Holytek” Router Machine
 “Holytek” Band saw Machine
 Sunfluid Hydraulic Guillotine
 SPA MODEL STDE 3+3 Spindles
 “Formahero” FH-302V4HP Multi Horizontal & Vertical Boring
 BS-120 Speedy Panel Saw M/C

2.4 Major Raw Material used

 Imported Paper And Paper core

 Imported Glue.
 Imported Fitting & Accessories
 Imported Laminated Paper Board.
 Imported Other Accessories.

3.0 Products

Paper Furniture Company will offer very high quality home furniture which is
made by quality paper and will be designed for the living room, dining room,
drawing room as well as the home environment. The paper made sofa and
chair looks very stylish and high quality home furniture.

3.1 Product Description

1. The company’s main product will be the paper made chairs in various styles.
These are the elegant piece of home furniture designed to look good and
stylish for home environment,
2. The company will also make paper made sofas in various styles. These are
the elegant piece of home furniture designed to look good and stylish for
home environment.

3.2 Competitive Comparison

Within our niche we have two significant competitors, Navana Furniture and
Otobi Furniture. Navana is a bigger company but operating mainly in our same
niche, whose marketing is better than its product quality. Otobi is a major
furniture manufacturer, which has recently targeted our niche.

In general, however, our competition is not in our niche. We compete against

generalized furniture manufacturers, cheaper home furniture. It isn’t that
people choose our competitors instead of our product; it is that they choose
lesser quality, mainstream materials instead of the higher quality furniture we
offer.

3.3 Sales Literature

In 2009 we plan to develop a company catalog, which will include some other
products for the same target customers. The focus will be the executive office
catalog, with furniture, lamps, and other accessories.

3.4 Sourcing

Our Oregon location is a distinct advantage for paper and paper core. Paper
cores are an industrial by-product that is as strong as wood and lightweight.
By spinning a strip of paper dipped in glue, a paper cylinder of desired
thickness and length can be made. Materials such as carpet, fabric and plastic
come in rolls where the core is a paper cylinder. Paper cores are made of
recycled paper, have stable qualities and are highly durable.

We will work with three paper and paper core suppliers, all local. We will also
work with a number of specialty manufacturers for furniture fittings, drawer
accessories, glass, shelving accessories, and related purchases.

3.5 Technology

We depend on our dominance of the latest in technology of ergonomics,

combined with classic design elements of fine furniture. We must remain on
top of new technologies in display, input and output, and communications.

4.0 Marketing Plan

4.1 Market Demand

 

In the Dhaka city there are many furniture companies but the paper made
furniture is the new idea. The furniture company will use modern technology to
manufacturing process. The company will manufacture the most stylish
furniture by using paper as raw material. As because it’s different type of
product rather then the other type of furniture that’s why we will get large
number customer.

4.2 Target market

            The target market is the family person who wants to have very fine and
light furniture with the latest in design. And at the first time the target area will
be the Dhanmondi area of Dhaka city and after that we will expand our
business to the every division of Bangladesh, This target market can be in the
Home, small or medium business. The common bond is the appreciation of
quality, and as well as the reasonable price.

4.3 Market Segmentation

 Family person: Our market research indicates a large market of potential

customers who are the head of the family and the house wife. The target
customer is going to be at a high level and mid level income people.

4.4 Customer profile

Name of the Customer:

Address:

Cell number:

1. What is your occupation?

¨ Government
¨ Private

¨ Business

¨ Others

2. Income level

¨ Bellow 20000

¨ 20000 – 30000

¨ 30000 – 40000

¨ Above 40000

3. How many people live in your family?

¨ 2      ¨ 3      ¨ 5  ¨ 6

4. Are you satisfied to using our product?

¨ Yes              ¨ No

If no then please give us some reason why you are not satisfy with our
product?

______________________________________________________________
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________

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If you have any suggestion on any other comments about our product then
please write that bellow:

______________________________________________________________
______________________________________________________________
________

______________________________________________________________
______________________________________________________________
________

4.5 Competitors

Navana Furniture Company:

Navana furniture company is the largest furniture company in Bangladesh.

This company is one of our main competitors. It was one of the first, certainly
the first we are aware of, to develop home furnishings and office furnishing
and market through advertising in in news paper, billboard, magazines, TV
commercial. They have a very nicely done catalogue and good relationships
with distributors.

Strengths: good marketing, strong advertising budget, relationships with

distributors, strong direct sales.
Weaknesses: the product is more standardized, and of lesser quality, with less
sense of design and materials and workmanship.

Otobi furniture :

Otobi furniture is another competitor which is the second largest

manufacturers of Bangladesh home furnishings. We see very good quality
product, and an excellent sense of design, but little movement in channels or
catalogues.

Strengths: financial backing, product quality.

Weaknesses: This company has not seemed to understand our niche, where
to find the buyers, how to market as a specialty niche instead of the more
traditional furniture channels.

Other Furniture companies: There are other furniture companies in Dhaka

like Akter furniture, Hatil furniture, and various types of home furnishing
companies who are the minor competitors of our company.

4.6 Marketing Strategy

Our product is positioned very carefully that this furniture is for the customer
who wants the quality product within the reasonable price. Unlike the
mainstream products, we do not use any harmful raw material

Our marketing strategy is based mainly on making the right information

available to the right target customer. Because in Dhanmondi area the
majority are the upper class and the upper middle class people. That’s why we
make our product more stylish and high quality but in a reasonable price.
What we really do is make sure that those who have the budget and
appreciate the product know that it exists, and know where to find it.

The marketing has to convey the sense of quality in every picture, every
promotion, and every publication. We can’t afford to appear in second-rate
catalogues with poor illustrations that make the product look less than it is. We
also need to leverage our presence using high-quality catalogues and
specialty distributors.

4.7 Product

We will offer the best and stylish furniture in the market which is made by
paper. At the first time we will manufacture only the paper made chair, and
after that we will manufacture paper made table, bed, computer table, book
self and other types of house and office furniture.

4.8 Pricing

We will maintain our pricing position as upper class and upper middle class
customers. We are the best product available for consumer. We maintain our
product price not that much higher or not that much cheaper but in the
reasonable price.

4.9 Place

The product manufacture industry will be in Mohammadpur area and our

showroom will be in Dhanmondi area.

4.10 Promotion

                The most important vehicle for sales promotion is the direct mail
catalogue published by the specialty retailer such as Sharper Image and its
competitors. Our advertising budget mainly for space in the specialty
catalogue and newspaper add. We will also promote our products with an in-
house catalogue including our own products plus related merchandise of
interest to the same target market.

4.11 Marketing approach

The company’s aim to aware consumer by the direct mail catalogue service
and by the Tv commercial. We will provide yearly membership card. And we
will give our members special discount. We will have participated in trade
show for our advertisement and marketing.

5.0 Strategy and Implementation

We focus on a special kind of customer, the person who wants very high
quality and comfortable home furniture customized to work beautifully with
modern technology. Our customer might family person, service holder or
business owner. What is important to the customer is elegance, fine
workmanship, ease of use, ergonomics, and practicality.
Our marketing strategy assumes that we need to go into specialty channels to
address our target customer’s needs. The tie-in with the high-end quality
catalogs like Sharper Image is perfect, because these catalogs cater to our
kind of customers. We position as the highest quality, offering status and
prestige levels of purchase.

5.1 Value Proposition

Paper furniture will gives the discriminating home furniture, which cares about
design, and quality furniture and quality of living environment, a combination
of highest quality furniture and latest technology, at a relatively high price.

5.2 Sales Strategy

Our strategy focuses first on maintaining the identity with the high-end buyer
who appreciates the best available quality. We’ve been able to find these
customers using a combination of direct mail catalogs and direct sales to
distributors.

For the next year we continue to focus on growing presence in the high-end
direct mail catalog that finds our specialty customer. We will work with Sharper
Image and Broadview more than ever, and we expect to gain position in the
major airline catalogs as well. Specialty retail is a new channel that could
become important for us.

Our work with distributors has been promising. We hope to continue the
relationship with distributors selling directly to larger corporations, even though
this takes working capital to support receivables.

5.3 Sales Forecast

Our sales forecast assumes no change in costs or prices, which is a

reasonable assumption for the last few years. We are expecting to increase
sales grow from 40%to 50% thousand in the next year.

We are projecting significant change in the product line, or in the proportion

between different lines. The key to our growth is the growth of the new
channels, with the main line.

5.4 Sales Programs

Specific sales programs:

1. Catalog sales: develop placement with one additional catalog catering to the
high-end office executive, paying of course for space and positioning.
2. Distributor sales: we will need to develop at least new distributor, spending for
co-promotion as required, and making direct sales calls.
3. Direct sales: we will do a mailing of a new in-house catalog, developed by the
marketing department, to add to our direct telephone sales. Jan will be
responsible, without a budget or a deadline because the catalog is a
marketing program.

6.0 Management

The company should ensure that right employers will be recruited in right
place as well as those potential employers must be highly educated, trained
and be experienced.

This furniture company’s management team will be;

1. Managing Direcetor: Ashik Mahmudul Hoque

2. Director of Sales : Mr. Akmol Hydar
3. Director of finance: Mr. Karim.
4. Disigner: Mr. Rahman Ali
5. CEO        : Mr. Maruf Khan & Mrs. Selina Akter
6. COO        : Mrs. Ferdousi Rahman

Management style reflects the participation of the owners. The company

respects its community of co-workers and treats all workers well. We attempt
to develop and nurture the company as community.

6.1 Organizational Structure

Ashik Mahmudul Hoque as a managing director, is responsible for overall

business management. Our managers of finance, marketing, and sales report
directly to Mr hasan ali.

Mr. Rahman ali, as a designer, is responsible for product design and

development, assembly, and manufacturing. The workshop manager reports
directly to Mr. Rahman.

 
 

6.2 Management Team Gaps

We depend on our professionals, our CPA and our attorney, for some key
management help. We don’t have a strong background in finance or business
management.

As we grow we will need to develop more manufacturing technique, more

mass production. Leslie grew up with the hand-made and custom furniture
business, knows fine furniture styling well, but admits a weakness in
establishing standardized assembly.

6.3 Number of Staff & Employees

 Mechanical Graduate Engineer – 01 Nos.

 Electrical Graduate Engineer – 01 Nos.
 Administrative Staff – 04 Nos.
 Sales & Marketing Staff – 06 Nos.
 Skilled & Semi Skilled Worker – 08 Nos.

7.0 Financial Plan

7.1 Capitalization flow

           

Capital required:

            Paper Furniture Company’s owner Mr. Ashik Mahmudul Hoque. As

because this is a furniture business that’s way at the first time there will no
need for huge investment.

Required for starting this business we have to consider on:

–          Decorated Office

–          Decorated Showroom

–          Manufacturing place

–         Manufacturing machinery

–         Technological support

–         Vehicles.

–         Cash (5,00,000) taka only

Regarding those requirement it will need more than (20, 00,000) twenty five
lakhs taka.  The company already has inventory (Office, manufacturing place,
transportation) and rest of the amount we are collecting from bank loan.

7.2 Use of fund statement

Cost (in taka)                   One year (in tk)           Total (in tk)

1. Showroom Rent                 5,000                                60,000                           

60,000

2. Insurance                          1,000                                 12,000               12,000

3. Account                            10,000                              1,20,000                        

1,20,000

4. Phone                               500                                     6,000                             

6,000

5. Salary                                   3,500                            42,000                

42,000

6. Machinery                             10,00,000                          –                                 

10,00,000

Operating expenses

6. Raw Materials                          3,00,000                                     –                         

3,00,000
7. Other equipment                       2,00,000                                    –                          
2,00,000

Total                                                                                                                    
17, 40,000

Assets Amount Liabilities Amount

Manufacturing 4,00,000 Purchase 1,00,000
place
Insurance 1,50,000 Bank 1,50,000
Prepaid rant 50,000 Unpaid salary 25,000
Inventory 40,000
Vehicle 1,00,000    
Total asset 7, 50,000 Total liabilities 2,75,000

Company’s net worth = 4,75,000

7.3 Use of Fund

1. Cash capital:

Company cash on hand 5,00,000tk and furniture and computer.

2. Credit capital:

We are purchasing 40% on cash and 60% in installment system

3. Debt capital:

We have to need more then 12, 00,000 tk and arrange from Ba

7.4 Cash Flow Statement

For the Year ended 2008

 
 

Jan Feb Mar Apr May Jun July Aug Sep Oct

Cash Sales 30000 20000 24000 25000 40000 22000 25000 21000 40000 30000

area 2500 1400 1900 4700 3400 1800 1500 2200 2400 2800

Total CS 32500 21400 25900 29700 43400 23800 26500 23200 42400 32800

Salary 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500

Rent 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000

Insurance 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000

Account 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000

Phone 500 500 500 500 500 500 500 500 500 500

Total 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000
Expences

Net profit 12500 1400 5900 9700 23400 3800 6500 3200 22400 12800

7.5 Income statement

Year ended Dec 31, 2008, 2009 , 2010

2008 2009 2010
Sales 240000 460000 850000
COGS 100000 140000 350000
Gross profit 140000 320000 500000
Less
Manufacturing 8500 10200 40000
Place
Salary 40000 50000 200000
Insurance 4000 6000 150000
Prepaid rent 30000 50000 150000
 Inventory 2000 5000 40000
Vehicles 10000 15000 100000
Advertising 10000 20000 200000
Total 104500 156200 124000
Net Income(before 35500 140580 1116000
tax)
Less 3550 14058 111600
Net Income(After 31950 139122 1004400
tax)
 

7.6 Profit and less Appropriation Account

  2008 2009 2010

Net Income(After tax) 31950 139122 1004400
Fund for paying principal loan 50000 500000 800000
7.7 Balance Sheet

For the year ended Dec 31 2008, 2009, 2010

Current A/c 2008 2009 2010

 
           Cash

Total current asset

Fix Asset :             

Other equipment

Materials

Machinery
Total Asset

Current liabilities:

Unpaid salary

Long term liabilities:

Bank

Owner equity

Retained earning

Fund for paying principal loan

Total Liabilities

500000

500000

200000

300000

1000000

2000000

5000

1000000

500000

445000

50000

2000000

800000
800000

200000

500000

300000

1800000

10000

400000

800000

300000

300000

1800000

1000000

1000000

200000

1000000

500000

2700000

50000

300000

1500000

500000

400000
2700000

8.0 Application for loan

     

To

The manager,

Eastern Bank limited

Dhanmondi

Dhaka, 1209

Sub: prayer for loan sanction.

Sir,

I, on behalf of the owners of Paper furniture company, beg to draw your

attention to the fact that we are starting a new business. It’s a furniture
company and its corporate office in Dhanmondi. To starting our project we are
setting financial plan about 20, 00, 000 laks taka and all ready we have 7,
50,000 laks taka to setting startup cost. Now we have to need rest (12, 00,000
laks tk) of the money for operating our service. We are presenting to you a
biography of this company and some business document.

In the circumstances stated above; therefore pray and hope that you would
take necessary steps to providing loan from your organization. We have the
promise to maintain all the criteria to getting the loan.

 
Date: 25h May, 2006

——————-

Yours truly,

Mr. Ashik Mahmudul Hoque

Paper Furniture Company

8. Conclusion

After making the business plan it was not find out that though Bangladesh has
a competitive advantage over many other countries in the world in this
industry it also have very big problems. If all these are not properly managed
the advantage shell not be there any more. By the year 2005 all the survival
requirements must have to be fulfilled to be what it is now. And It also required
that, to the advice of RMG and full fill their interest and they should go beyond
their existence facilities.