MGT368.

4| GROUP REPORT
Course Title: Entrepreneurship
Business Plan on Babysitting Service ‘’ MOTHER’S LAP’’
Submitted To:

Faculty-Samuel Mursalin (SmM4)

Department of Management, North South University

Submitted By:

Tamanna Binte Newaz 1821379630

Sajibul Islam 1530762630
Abir Hasan 1530863630
Atikul Islam 1310235030
A.K.M. Mahdi Islam 1822067630
Sadat Ahmed Sammo 1722258030
Md. Masidur Rahman 1510490030
Tanha Noor Azad 1812229630

Date of submission- 30th September,2020

Our Business Logo

 Letter of Transmittal
September 29, 2020
Samuel Mursalin
Lecturer
Department of Management
School of Business & Economics
North South University

Dear Sir,

In response to the project we were given as a part of our MGT368 course, we

present you our business plan, which is essential for completing the course.
For this business plan, we tried our best to provide accurate information to make it
more genuine and informative. We also tried to relate to our course learnings, class
lectures and contents to gather relevant information needed to prepare the business
plan.
We hope that our report includes all topics demanded by the project outline
accurately.

Yours faithfully,

Team Mother’s Lap

 Executive Summary
In Dhaka City, an increasing amount of families have now become dependent on
two incomes. which creates the need of a child care industry Both parents are
working, as a result there’s no one to look after their child. Keeping their beloved
child under the care of maids or servants becomes risky as these parents cannot
monitor their child during their absence.

As a team of young entrepreneurs, we have decided to come up with a solution for

these working parents by coming up with our very own babysitting service,
Mother’s Lap. Our aim is to take care of children whose parents are busy and
cannot look after their child during their working hours

This business plan consists of even breakdown of plans that our entreprenuers
decided to follow as we launch this service for the people living in Uttaraa. Our
business plan will include, Introduction about our organization, a Business model
which will include all 9 key elements, a deep analysis on Business environment,
our Service Delivery Model, Operational plan of the organization, Marketing Plan
Organizational Plan, Assessment of Risks and finally, the Financial Plan.
 Table of Contents

Letter of Transmittal.....................................................................................................................2
Executive Summary.......................................................................................................................3
Introduction....................................................................................................................................5
Business Model Canvas.................................................................................................................8
Business Environment Analysis....................................................................................................9
Service Delivery Model................................................................................................................17
Operations plan............................................................................................................................20
Marketing plan.............................................................................................................................23
Organizational Plan.....................................................................................................................28
Risk Assessment...........................................................................................................................30
Financial Plan...............................................................................................................................33
 Introduction
Mothers lap is a babysitting service which provides occasional child care for few
hours at a time. Our service is designed for infants to eight years old kid whose
parents are part time or full-time workers. Parents who are working nine to five
outside and cannot take care of their babies can easily be safe at our baby care
place, Mother’s Lap. Our main purpose is to create difference in child life, teach
them valuable skills and help them to grow personally. Caring for babies is our
calling in life. We service is open 24/7. We maintain full hygiene and security for
babies. We have 24/7 medical services and emergency services as well. We ensure
all the facilities that babies will need and it is another home for babies.

Name and Address of Business

Name: MOTHER’s LAP

Address: Our head office is located in Uttara, Sector-6 and our care center is
located in Sector-4 House-44, Road-32, Uttara, Dhaka-1230 Bangladesh.
Name and address of principles: Our business is a partnership business. We are
eight partners mutually owning the business. The name and address are given
below-

NAME ADDRESS (Dhaka)

Tamanna Binte Newaz Uttara

Abir Hasan Mohammadpur
Sajibul Islam Bashundhara
Atikul Islam Mohammadpur
Sadat Ahmed Sammo Mirpur
Tanha Noor Azad Mirpur 13
A. K. M. Mahdi Islam Shyamoli
Masidur Rahman Shafy Nikunjo

Nature of business

The nature of our business is Babysitting. Our service is mainly full-time child-
care service. We also work on child growth and development of both mental and
physical health. We offer fresh and safe environment for child’s mental growth.
We are mainly targeting the middle-class family who does not have abilities to
keep babysitter at home. So, they can easily keep their baby safe at our place.

Estimated financial statement

For our business the total financing we will be needing is 32 Lac BDT. We have
investors from different sectors. We have included both our personal investment,
investment from investors and Bank loans. We are 8 members mutually
contributing 4 Lac from each member. We will also need bank loans to complete
our financing which is included in our personal investment.
Statement of confidentiality of report

All the data and information relevant to the business will be strictly confidential
and hidden from the third parties without prior written consent and approval of the
owners. The relevant source, data and information will be safe and will only
belong to MOTHER’s LAP authority and protected from outsiders. Point to be
noted that any breach of the contract will have to stand in front of lawsuit and will
be considered as violation of constitutional rules of Bangladesh.
 Business Model Canvas
Key Partners Key Activities Value Proposition Customer Customer Segments
 Medical  Babysitting  Safety of Relationships  Parents living
Support service babies  Word of in Uttara
 Equipment  Child care  Education for mouth  Working
Suppliers  Providing babies  Building trust Parents
 Toy stores hygienic fresh  Security of  Reviews  Single Parent
 Book Stores food babies  Loyalty  Upper class
 Retailers of  Refreshment  Parents can program parents
Baby products time for contact their  Referral  Middle Class
babies child anytime program Parents
 Multimedia they want to  Providing  Urban people
class for excellent baby  Parents who
babies care service are looking
for safe
babysitting
experience
Key Resources Channels
 Human  Advertising in
resources Television
 Capital  Promotion in
 Equipment Facebook and
 Digital Media Instagram
 Expert Health  Advertising in
Consultants Newspapers
 Social
Networking
Sites
 References

Cost Structure Revenue Stream

 Employee Salaries  Enrollment
 Staff Salaries  Babysitting charge
 Cost of business location
 Cost of interior and exterior design
 Cost of electricity, water etc.
 Cost of Equipment, maintenance and rent
 Cost of Advertising
 Cost of baby products
 Cost of baby toys
 Cost of milk, pampers etc.
 Cost of Medical Equioment
 Business Environment Analysis

Future Outlook and Trends

In Bangladesh mostly women take care of their children. But as nowadays the
working woman of our country has been increasing it is getting harder for them to
maintain time for their children. A recent article says that: The number of working
women increased to 18.6 million in 2016-2017 from 16.2 million in 2010.
Bangladesh secured the 47th position among 144 countries in 2017 as per the
Global Gender Gap Report, whereas India, Sri-Lanka, Nepal, Bhutan remains at
108,109,119,124 and 143 positions respectively "Dhaka Tribune, 2020". That
means in future mothers will want to rely on a babysitting care. Many foreign has
already established this type of business so there is high chance in future it might
take a successful business in our country.
 PESTEL Analysis

PESEL Analysis is a tool or framework that is used by the marketers to monitor

and identify the macro environmental forces of a business. The word PESTEL is a
mnemonic where P stands for political, E stands for economic, S stands for Social,
T for Technological, E for Environmental, and L for Legal. This PESEL analysis
will give us the bird’s eye view of the whole environment which will help us to
contemplate about a certain Idea or plan.

Political: Political environment means how much influence that the government
has on certain criteria. The government of Bangladesh wants to make our country
Digitalized by providing proper education with the help of computer and
technology. Since, we will provide the children with primary education without
giving them the pressure they get from schools it will give them better
understanding of their higher education. As our service helps the government’s
mission, hopefully we will have support from political environment.

Economic: Economic factors include economic growth, exchange rate, inflation,

business etc. Babysitting services are well-established in many foreign countries.
As we want to work nationally by providing the good service, if we execute our
business right it will surely help us to contribute to the country by improving the
overall economic environment of our country.

Social: Social environment factor is involved on sharing same belief and attribute
of certain area. Our business focuses on making life easier for people. As we are
giving the students primary education in a digitalized way unlike the traditional
schooling system, it will help our business to get social acceptance.

Technological: technology changes by time and it affects the whole business

operating. As the technological environment changing and developing by time and
mostly our service includes technologies it supposed to work in our favor.

Environmental: Our business interior would be full of greenery. It will be

smoothing to the eyes and also environment friendly. It will also us create fresh
environment to help the children think positively.
Legal: To start our business in a complete way then continuing it afterwards, we
will follow legal policies and laws that need to follow. We will do copyright to our
service to ensure the legal support.

Porter's Five Forces

Threats of new entrants (Moderate): Investment for this business is pretty high
and it is not that easy to start and maintain. But if we get success in this field, there
might be new entrants of baby care center in future. Because of that, we can say
that threats of new entrants are moderate.
Industry rivalry (High): Nowadays we have some baby care Centre in Dhaka
including SOS children’s village, Singapore int. school, child cheer and etc.
because of that the industry rivalry is high for the business.

Threats of substitute (High): Threats of substitute is also high for the business.
The customers have other options. Primary school can be call as substitute for this
business.

Bargaining power of customer (Moderate): We do have some baby care Centre

in Dhaka but quantity of that is very low because of that the customer will feel
difficult to find a new baby care with all the facilities we are giving also new
administration process could be expensive.

Bargaining power of supplier (Low): It is easy to switch to another supplier in

this sector and there is no scope of monopolizing because of that we can say the
bargaining power of the supplier is low in this sector.
 SWOT Analysis

Strength:

 Our business will hire employees with skills that is needed for our service. It
will create opportunity for many people
 For financial support we will take help from the bank. We will have backup
to continue work if any financial problem occurs. Hopefully there will no
financial crisis.
  For ensuring safety for the children, we will maintain security. Employees
that are going to work in the organization will be provided with their
background information and past experience so that we can ensure the
secure and experienced employees. Also, inside that day care, we will have
CCTV camera for 24hours, enough security guards to make sure the security
of the children.
 As our work is not only taking care of the children for certain time, we also
want to provide them primary education with the proper help of technologies
so we will have professional teacher for that.

Weakness

 High cost of setting up the business. Also, the rental cost is very high.
 Pricing for the services should be appropriate as there is some is some
daycare those are already providing these services.

Opportunity

 In our country day care service businesses is pretty new and not well-
established. We can take the advantage of it take it as a big opportunity for
us.
 Customer demand for this service is very high and in future the demand will
increase in high rate as working parents our country is increasing.
 There are fewer competitors in this sector. So, we have to compete with a lot
of businesses.

Threats
  Because of the Corona pandemic the economic situation is unstable. It will
be the cause of big problem of our business if the economy gets stuck in the
starting of our business.
 In this Corona pandemic situation, many people are switching their jobs to
find the better income source and facilities. We wanted to train up the
employees before we start, so if they leave after some months it will cause
loss for our business and all the hard work will go in vain.

Stakeholder Analysis

The lists of stakeholders we will have are given below:

Shareholders: We have 8 members in our groups. We will work as shareholders

of the company.
Customers: The customer of our service will be the working parents.
Government: As we are going to follow all the legal rules and regulation and we
will do copyright; the government will give us acceptance to start our business.
Co-workers: We will have our own working team.
Suppliers: To get equipment and employees there might be need of the supplier.
 Service Delivery Model
Service process

As ours is a service, so we try to provide best service to our customers. The service
process will be done by our company and organization Mother’s lap. Before
providing the service, we conduct a research over our population thinking, then we
make a map by that research and try to provide service according to that map.

Source

Our organization conduct an interview process before hiring employee. The

employee should be fulfilling all the requirements before involve with our
company. We try to select best employee because this baby-sitting business is very
sensitive issue and this is directly or indirectly related to baby. If we provide bad
service or bad employee this could be threat to us. So, we decide to ensure the best
employee and not only that we also ensure the best training to our employee before
engaging them to this kind of job.
Sorting

We sort our employee with some category like, we list some employee who can
care very little baby and another we select who can care little bit big baby like 5 to
8 years. We also list some employee who can not only take care baby but also can
make baby foods and light housework. These types of employees we provide and
parents can select their desire service from our category-based employees.

Machineries and equipment

Another information we not only provide service to only home. We have some
branch in different area in Dhaka city. Parents can hand over their kids at any
branch as their wish. We will provide expert employees for taking care of their
kids.

There’s some machineries and equipment list we provide for our service

 Office table
 Reception desk
 Proper Internet service
 Clean room for keeping baby
 Bunch of toys
 Carpeting
 Hot water system
 Sofa set
 Multiple projectors
 Proper lighting
 Personal laptop and computers
  Medical center
 Well trained security guards
 CCTV camera
 Intercom
 Air condition and fan
 Room heater for winter season
 Ips and generator system
 Proper filter water
 Printer
 Weight machine

Service provided by our employees

Here some responsibility for our organization

 Ensuring baby’s safety

 Preparing foods for baby
 Helping baby with their homework
 Playing games and have fun with baby
 Changing baby’s diapers
 Getting baby to bed in time
 Laundry baby’s cloths
 Bathing and dressing to baby
 Cleaning baby’s bottles
 Sometimes go out with baby for their refreshment.

Zoom babysitter’s service

This sound could be interesting but yes, we will also provide such kinds of service
where babysitters can conduct their work by online. During the time of Covid-19
most of the parents are staying at home. They can look after their baby in this case
but it also very difficult to them to engage another some kinds of works. And one
of the most important things is now it’s not safe time for entering another person in
house. This could be harmful for both baby and their parents. By thinking this
situation our organization decided to provide online service. By this term’s
babysitters can engage children by video call or zoom call. They can play different
types of games with baby via video call. Another sometimes single parent or living
lonely parent face some problems like they want to go washroom but can’t keep
their baby alone. So, they also can apply this service. This could be effective for
both parents and their children.

Operations plan
Statement of organization’s operation

Babysitting service will be provided by us to the working mother of the Dhaka

city. Day care service for the babies. Nannies will look out of the babies. Nannies
look out of the babies when the guardian put of their babies at the beginning of the
day. Our service will be monthly and hourly basis including food, cloth, medicine
and so on service for the children. Some parents want half day service so that that
service will be provided. Our educated nannies will help the older child to prepare
their homework as well. There will be also prenatal service for pregnant women, so
that we will provide well health consultant and trainer and that will be hourly and
monthly charge and also some exciting packaging services.

Our business is a partnership based where all partners take equal risk and profit.
Our partners take proper steps for our business more gainful, efficient and
arranged. Our office will be located at Dhaka and advertise our business through
TVC, Newspaper, Facebook page and other digital and physical advertisement for
our clients to know everything of our business. We will do every understandable
action for our clients to build long term relationship with our clients.
Operational flow chart of MOTHER’s LAP

Clients will pick

Clients will visit Clients
services for themwill
pick
our organization services for their Finalize the order
Babies. babies

Provide services for babies

Registration and Provide services

Document fill up Payment
for babies
Uses of Technology

Technology all-time gives extra attention and benefit for an organization. By noted
that for our organization will bring in latest technology which will ensure babies'
comfort and security Such as:

1. CC tv coverage all over the place

2. RFID system for authorized entry.

3. We will introduce an app through which parents will be able to monitor their
children’s activity

4. We will have large screen computers for an entertaining education experience.

5.In every entry point there will automated metal detection checking.
 Marketing plan
Customer analysis

The company mission is to serve the residential community. Our clients are working
and single parents or guardians who cannot constantly visit their child.

Market segmentation (Demographic)

 Gender - Male and Female

 Age group – 22- 40 years
 Occupation – Students, young professionals, office goers in general
 Education – College, University and upper
 Social Class – Upper class.

Working parents: Our biggest client will be the parents, where both colleagues are
earning at the same time. Parents who did not need to take their children to some
day care centers needed such a short but faithful prophet to take care of their
children for a few hours at home, had to go a few times for a few occasions. Parents
are leaning towards sitters who know how to have fun with kids and control all the
rules and can also meet recovery crises, so we’ve got unique ideas for preparing our
sitters.

Single parents: Single men or ladies who require help of a sitter to require care of
their children while they are active within the family chores or whereas they are out
of the house, will be our moment target gather.

Guardians of children with incapacities or sickness: Parents who have moderate

learning or some kind of illness in their children need to take care of their child on a
regular basis.
Services

We pay attention to children because we don’t have enough time to take care of
children in certain families. Numerous long lesson practitioners who do not need to
take care of their child. As a result, their housekeepers or workers take care of their
children. That’s why kids ’progress can’t keep up with their values. This rate is
expanding day by day.

We pay attention to pregnant women. We offer our administration to those target

families with our pro kids. A child caregiver can be a farming child pioneer master
who centers on creating encounters and openings that welcome investigation and
increase the rapid and noticeable progress that occurs in a child as the year begins.
We care about children in the long run, encourage and protect them. For
instructions, in addition we have some staff or teaching bolster or a few more
mature kids. They will help wrap up their homework, we will charge for a few hours
for our clients.
 The Marketing 4ps

Pricing:

Cost-based pricing: Our facilities are expensive so we do not rely on entry

estimates. We have a lot of cost tags, taking leases, compensating workers, transport
costs, calculating tolls for toys, nutrition or other useful numbers. Based on these
things we are going to fix our cost 20000tk (baby per month)

Value-based pricing bring an expense that our clients are willing to pay. So, we will
try to bring the best value of the bundle while maintaining all the cost intelligence to
provide the best conceivable benefits to our clients. The cost of our items varies
depending on the age of the child and his other necessary benefits. Young people
are more sensitive so it will start from BDT 20000 per month.

Place:

We are focusing on higher paid individuals in higher education and refraining from
all aspects of providing our expensive administration. We need to discover our
active, personal or any position by focusing on the rich clients (rich person) live.
We are setting up our trade in UTTARA so that our target can reach the clients
effectively from there.
Distribution channel- The channel we spread should be conventional or traditional.
A routine scatter channel consists of one or more free manufacturers, wholesalers
and retailers. Divided trade to maximize the benefits of each claim. On the other
hand, the vertical promotional framework is acting as a bound together framework.
So, it takes more cash.

Promotion:

Promotion is very important to reach people. We are doing some stuff. We are
focusing on online progress. Online is a huge source for publishing a wide number
of people. So through Facebook, online stores like Daraz, Alibaba, Pickaboo we
will forward our step. Newspaper promotion will draw in our clients as most
working individuals and adults often take after daily papers and magazines.

It may be clever to be a modern entrepreneur after this approach as it can cover a

wide area. Mailing to loyal clients so that they can remind us almost the benefit. It
makes a difference us keep up to date with our commerce. Another important thing
is social media. We are making advance and keep up existing pages by means of
social media pages like Facebook and LinkedIn. Making different brochures to
incorporate the administrations and programs advertised. There is deal and bolster
hotline for our clients. We keep up open relations as much as conceivable.
People:

Target Individuals: We are focusing on numerous higher course business

individuals who do not have time to care for their children. Large-scale family and
parents are both working in outdoor homes.

Representatives: On the other hand we contract individuals who have at slightest A

level or HSC degree. They ought to be savvy, good-looking and uncommonly
prepared for child caring.
 Organizational Plan
Form of Ownership

Our business will be a partnership business comprised of eight entrepreneurs. We

formed this business according to the partnership act 1932.

Authority of Principal

Entrepreneur Name Percentage of Jurisdiction Rank

ownership
Md. Masidur 12.5% Check signing Chief Executive
Rahman authority Officer
Tanha Noor Azad 12.5% Advisor Chief Operating
Officer
Sajibul Islam 12.5% Financial jurisdiction Chief Financial
Officer
Abir Hasan 12.5% External Affaires Head of Public
relation
Tamanna Binte 12.5% Internal Affaires Head of public
Newaz Relation
Atikul Islam 12.5% Promotion & Head of Marketing
Campaign
Sadat Ahmed 12.5% Sales Head of Marketing
Sammo
A.K.M. Mahdi Islam 12.5% Technical jurisdiction Head of IT
Payment Policy
Since our company is very new so we will take low salary and profit will be shared
equally among the co-founders.

Salaries & Bonuses

Name Amount
CEO 15,000 and profit
COO 12,000 and Profit
CFO 12,000 and Profit
Head of PR 12,000 and Profit
Head of Marketing 12,000 and Profit
Head of IT 12,000 and Profit

Key Employees

Key employees are basically considered as lower level employees and they maintain
the entire process of a company. As a result, we have to recruit skill, hardworking,
dedicating and smart employees who can run the business.

Rank Number of employees

Chief Engineer 1
Executive 8
Junior Executive 8
Financial Manager 1
Accounts officer 2
Sales man 5
Technician 2
 Risk Assessment
What is a Risk Assessment in Babysitting Care?

In order to ensure that this is the case, risk management is necessary, babysitting is
a critical sector of our community, and babysitting organizations is expected to be
ultimately secure. Children are vulnerable to falls and trips, so a risk assessment
would ensure that the atmosphere is secure and healthy for a child to be there in
order to minimize the likelihood of all accidents.

Risk assessments are a legal responsibility. In order to prevent consequences,

babysitting organizations should adhere to Bangladesh Health and Safety Law. To
ensure the respective health and safety of baby-sitting organizations, risk
assessments must be carried out.

Why are risk assessments necessary in Babysitting?

There's no mystery that children can be tentative and sometimes wounded over their
feet. If your company cares for children, the first step to ensure this is achieved in
the right and productive manner is the risk evaluation. Initially, risk evaluations
classify all of the possible hazards in a childcare facility.

How can we conduct a risk assessment?

1) Danger or threat detection in your work environment.

2) Who is in danger? What specific kids could be more vulnerable or is this

particular threat for workers and babysitting personnel?

3) The control measures should be calculated. This danger will be shielded from
check measures.
4) Record your risk management step by step. Through doing this, you will show all
the authorities concerned that you have taken the requisite measures.

5) Ensure that your risk assessment is controlled and checked periodically,

particularly as new children come and new babies arrive.

Technological advancement

1. Our whole area is controlled under CCTV camera, so that parents can watch
their child anytime from anywhere.
2. We have developed a separate video communication app where parents can
communicate with their children which allow the child to feel more
comfortable and also the parents to stay motivated in their workplace.
3. We used a new kind of napkins, we call it ‘Smart Nappies’. It can alert us
when babies need their nappies changed.
4. We have fingerprint security where parents need to register their finger and
they need to confirm their identity while meeting their children or taking
them home.
Contingency Plan

1. Child and child safety strategies in need strategies for children or needy
parents should understand how children could be harmed as a result of
parental vulnerability. Such as
 Is the weakness motivating?
 Ability to look after oneself and children or the capacity to prioritize?
 Does the child encounter actions like self-harm, general weakness,
strange or alarming behaviors that can be distressing??
 If so, what can be done or assisted to help and improve the safety of
children?

2. Our Professionals always understand how a parent and his child can handle
changes in circumstances. In the case of, for example, a hospital admitted
parent or a job, or whether the mental health of the parent deteriorates, care
plans should be reported clearly.

3. The Child Safety Risk Assessment Organization is good practice for

practitioners in agencies in order to provide preventive assistance and crisis
management.

4. The families should agree on the care arrangements, child safety programs
and children in emergency plans and provide communications with family
members when necessary to provide supplementary assistance if the situation
is deteriorating. In order to recognize and express issues to family members
or experts, contingency planning should clearly articulate what will happen.

5. When ceasing to help needy parents, practitioners ought to take careful note
of the consequences for children.
 Financial Plan
Revenue Structure

ITEM TAKA

ADMISSION FEE(ONE TIME) 20000

Day care service (monthly fee) 20000

Physical instructor and other service (for 15000

mother and pregnant)

Break Even analysis

TAKA
ITEM
PER CHILDREN PER YEAR 240,000

APPROX NUMBER OF CHILDREN IN 50

ST
1 YEAR
ST
1 YEAR REVENUE GENERATION 120,00,000

ST
1 YEAR PROFIT MARGIN 40% 400,00,000

ND
NO CHILDREN 2 YEAR 100

AFTER INCREASE IN NO CHILDREN 200,00,000

@100
PROFIT@100 CHILDREN AT 40% 800,00,000
Assumptions

• Sales revenue will grow 10% annually.

• Monthly salaries of the employee 80,000

• Rent will be 60,000tk monthly

• Other expense 40,000 monthly

• Average salary increment is assumed to be 5% for personnel (Excluding adjustment for the hike
in inflation rate).

• COGS is assumed to be 60% of the total revenue.

• Fixed Assets will grow at a constant rate of 5%.

Summarized pro-forma income statement

Details 2020 2021 2022 2023 2024

Sales/ Revenue 631739.00 821260.70 1067638.91 1387930.58 1804309.76
Cost of Goods (293826.00) (323208.60) (355529.46) (391082.41) (430190.65)
Sold
Gross Profit 337913.00 498052.10 712109.45 996848.18 1374119.11
Total Selling and (216278.00) (237905.80) (261696.38) (287866.02) (316652.62)
Admin expenses
Earnings before 121635.00 260146.30 450413.07 708982.16 1057466.49
Interest and Tax
Interest Expenses (462720.00) (462720.00) (462720.00) (462720.00) (462720.00)
Tax (45613.12) (97554.86) (168904.90) (265868.31) (396549.93)
Earnings after
interest and Tax (386698.12) (300128.56) (181211.83) (19606.15) 198196.56

Cash flow Projections and Source and Application of funds

Details 2019 2020 2021 2022 2023

Beginning cash 4100000 (302491.60) (220660.08) (107902.80) 45695.58
Sources of cash
Net income (386698.13) (300128.56) (181211.83) (19606.15) 198196.56
+ 100000.00 100000.00 100000.00 100000.00 100000.00
depreciation/amortization
+ changes in accounts (63173.9) (82126.07) (106763.9) (138793.0583) (180430.9758)
payable
+ short-term debt 0 0 0 0 0
Total sources of cash (349872.03) (282254.63) (187975.72) (58399.21) 117765.58
Uses of cash
Less changes in accounts (47380.43) (61594.55) (80072.92) (104094.79) (135323.23)
receivable
Less payment for fixed 0 0 0 0 0
assets
Total uses of cash (47380.43) (61594.55) (80072.92) (104094.79) (135323.23)
Ending Cash (302491.60) (220660.08) (107902.80) 45695.58 253088.81
30 days are considered in a month and government holidays will be given to employees

• Advertising cost will be 8000tk per month because we have to promote our new business
as we are focusing more on social media the cost is less here.

• Selling price will remain constant for first three years.

Cash Flow

We projected cash flow for the year 2020 from July to December

Cash flow Statement

Details July August Sept Oct Nov Dec

Cash Inflow

Revenue 300,000 300000 300,000 300,000 300,000 300,000

Total Cash
300,000 300,000 300,000 300,000 300,000 300,000
inflow

Equipment 200,000

Furniture 100,000

Other assets 40,000

Salary 80,000 80,000 80,000 80,000 80,000 80,000

Rent 30,000 30,000 30,000 30,000 30,000 30,000

Advertising
4000 4000 4000 4000 4000 4000
Cost

Electricity
10,000 10,000 10,000 10,000 10,000 10,000
Bills
Miscellaneous
5,000 5,000 5,000 5,000 5,000 5,000
Expense

Office
Interior 65,000 0 0 0 0 0
;2Expense

Total Cash
534,000 ;2194,000 194,000 194,000 194,000 194,000
Outflow

(+) Beginning
0 -234,000 -128,000 -22000 84,000 190,000
Cash

Net Cash flow -234,000 -128000 -22000 84,000 190,000 296,000

Pro Forma Balance sheet

Pro Forma Balance sheet

Particulars 2020 2021 2022 2023 2024

;8

Assets
Inventories 2,773,900 2,912,595 3,087,351 3,272,592 3,501,673

Trade receivables 4,160,850 4,368,893 4,631,026 4,908,888 5,252,510

Cash & cash 200,000 210,000 222,600 235,956 252,473

equivalents

Prepayments (989,769) (1,039,257) (1,101,613) (1,167,710) (1,249,449)

Other receivables 124,826 131,067 138,931 147,267 157,575

Total Current Assets 6,269,807 6,583,297 6,978,295 7,396,992 7,914,782

Property Plant & 6,000,000 6,300,000 6,615,000 6,945,750 7,293,038

Equipment
(Depreciation
Excluded)

Goodwill 60,000 63,000 66,150 69,458 72,930

Capital Work in 500,000 525,000 551,250 578,813 607,753

Progress
Total Non Current 6,560,000 6,888,000 7,232,400 7,594,020 7,973,721
Assets

Total Assets 12,829,807 13,471,297 14,210,695 14,991,012 15,888,503

Equity and Liabilities

Trade Payables 277,390 291,260 308,735 327,259 350,167

Other creditors and (943,126) (990,282) (1,049,699) (1,112,681) (1,190,569)

accruals

Total Current (665,736) (699,023) (740,964) (785,422) (840,402)

Liabilities

Business loan 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000

Total Non Current 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000

Liabilities
Capital 2,000,000 1,884,953 2,045,129 2,211,918 2,401,368

Total Equity 2,000,000 1,884,953 2,045,129 2,211,918 2,401,368

Total Owners Equity & 7,334,264 7,185,930 7,304,164 7,426,496 7,560,967

Liabilities
Break Even Analysis

Details (Tk.)

Revenue per day (Average) 8,000

Less: Variable expenses per day

4000
(Average)

Contribution margin per unit 4000

Fixed Expenses 75000

75000

Break-even point (Units) 20

10,00,000
 20
We will need approximately more than 5 years to overcome our losses and gain extra profit.
 Appendix

Our Facebook Page

 Our Business Website
Website Link: https://mothers-lap.wixsite.com/mothers-lap