Course Title :Principles Of Entrepreneurship

Course Code :BUS 321

Semister :Summer 2020
Section :02

Prepared and Submitted By :

Sumaiya Ahmed – 17304095

Umme Honey – 17104110

MuniraHasin – 17304100

Sabah Naureen – 16204010

Fahmida Akhter Jahan – 16204026

Submitted To :
MS. Raisa Tasneem Zaman
Lecturer, BRAC Business School

Date Of Submission :13th September 2020

1
Pinewood Studio
Your Preference is Our priority

Business Plan
January 2020

Sector 11, Road 16,

House no : 04, GareebNawaj Avenue,
Uttara, Dhaka.
01767853865
info@pinewood.com
https://sumaiya3480.wixsite.com/pine-wood

2
Table Of Contents : Pg
Abstract

Section -01
Background Of Business 5
Prototype 7
Feasibility Test 8
Product/Service feasibility
Industry and target market feasibility
Organizational feasibility

Section -02
Business Canvas Model 17

Marketing Plan 20
STP
4P’s 23
Marketing strategy

Section -03
Financial forecasting 25
Funding Source : Capital
Pro former income statement
Ratio Analysis
Break Even Point

3
Section – 04
Appendix
38
Reference

4
 Abstract
Pinewood is one of the first online retail business in Bangladesh which sell customized
furniture. We are introducing versatility of style and design, adding elegance and aesthetic
appeal to our products according to our customer preference. We are giving a platform for our
customer where they can design their furniture according their choice they like.
More than a hundred medium and large furniture factories have come up in the country over the
last 50 years. Companies like Hatil, Otobi, Akhtar, Athena's, Legacy, and Brothers have
varities of products. The country's furniture industry has seen a rapid growth in recent decades
with over 25 lakh workers currently employed in this sector. 
Though we have tough competitors in the market, but for sustain in the market our furniture
business is offering the right combination of variety, quality and price. We built personal
relationships with our suppliers, digitilized our catalogue and constantly improved our
operations. After carefully selecting and listing products, we use data analytics to track which
ones are the most popular and scale up or remove them accordingly. Based on consumer
choices, customer continually give feedback on designs when they will purchase furniture from
us.

5
 Section – 01

Background Of the Business

Company Overview

Pinewood Studio is a retail online business which is incorporated in Dhaka City. This idea was
being established by five of us, when we actually realized that although there are many retail
furniture business yet they are not enough as they only provide you what they have. Moreover
currently everything is getting online based as it is very much time consuming to visit the shop
and then buy also people don’t get enough choices to make. Which is why we came up with the
idea of an online retail furniture shop that will be very convenient for the customers to buy
furniture saves lots of time as they are getting it just by sitting at home. Furthermore what
makes us different from the competitors is that we are offering customized furniture for our
customers designed by expert artists. They will get high Quality products from us at a very
reasonable price and also very much convenient for our buyers. This idea was being
incorporated in Jan 1, 2020, we only have a small shop in Uttara GareebNawaj Avenue, sector
11. The shop and the warehouse are the private property of us that we are using for our business.

The entire business is being managed by 5 of us as it is completely online based. Moreover our
customers are getting the opportunity to directly contact with the sketch artist to make them
understand what designs they want.

Mission & Vision

6
Our Vision is to become the first leading digital marketplace of wooden furniture in Bangladesh.
Our Mission is to reach 1 million customers within 2025, to create a beautiful bond with our
furnitures.

Products and Services

We are Offering various products of home furnishings such as, bedroom furniture, dining, living
room, office furniture, shelves and few others. All these products are made with the finest woods
and various designs are there to be offered. Customers can even make up their own designs from
us. We will ensure the quality of the products and exclusively uniquely designed furniture.
Currently we are only providing our service with in Dhaka City only, but gradually onwards we
will expand our services to other cities as well.

Prototype

A prototype is the sample or model built to test a concept or process. This the raw or the beta
version of the website, sketch, models etc.

Here is the sample for the prototype of our business :

https://sumaiya3480.wixsite.com/pine-wood

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Feasibility Test
Product/Service Feasibility :

For our startup business “Pinewood Studio” we have gone through service desirability and we
get to know about how would be our service demand. First of all we thought about some
questions, for instance is our service that we are giving reasonable? Are customers going to like
or accept our service? Is it a perfect time to introduce our service? To know all these in a proper
way we made survey questions for general people who might be our customers and then we have
got a good amount of response as it is going a pandemic situation so we got 54 responses from
our online survey.
Then we describe in concept test about our service that we are producing online customized
furniture according to customers’ choice and we give best quality wood from our own country
and we are giving sample wood for choosing also. On the basis of that we made survey
questions. On the basis of that we get to know about customers’ feedback.
In our Survey we asked 11 questionnaires. From those what we have get to know, an overall
description of those are given bellow:
First of all we asked about when do they like to buy furniture and 83% of them said that they buy
it when it becomes necessity. So it remains a positive interest of them as it can be seen in the
picture given bellow.

8
Secondly we asked about the age of them and we got most of the responses from 20 to30 years’
old aged people. About 75.7% of them were from 20 to30. So we get to know about a
demographic idea about customers.

Then we asked about in which are do they live in? Then we get to know that most of they are
from Dhaka. So we focused on Dhaka and Chittagong. From Dhaka we got 74.1% responses.

Then we asked about

whether they like
customized
furniture or not. Here
we get positive
answer from most of
them. So here we think
it is right time to start
our business.

9
After that we asked about what type of wood they prefer and got response about all type of wood
the most and it was about 33.3%. So we decide to keep all type of wood for them so they can
choose.

When we asked about what kind of purchase they like the most. Most of them answered about
offline purchase. From this we realized that we have to do a lot of promotional activities to get
their attention in our business.

10
As we get to know most of them face quality issue when they buy from off line shop so we
decide to give them the best quality product. Then we are also focusing on providing as much
sample as we can.

When we asked whether they face any other problems or not they replied that they generally do
not face any other problems. Then we asked about website of us then they give positive response
that it would be helpful if they get a good quality website so that they can get to know about us
and our service and products. We also get to know from them that they expect the best worker

11
who can make good furniture. So we are trying to have best labor for our business. We are also
focusing on making the household furniture as those are mostly required by them.

12
So this was our Survey Questions for our service feasibility. So by these we set up our business
according to the choice of general people through online survey.

Industry and target market Feasibility:

Target segment and benefit attractiveness (Market Domain/Micro Level):

In Bangladesh, wood-basedfurniture organisation has a high growth rate over the last decade.
Now it has become a source of news employment sector after RMG. The growing rate of
demanding new designed with best quality has given this market to grow faster. Our customer
segment is not that large but the growing trend might add an extra advantage to our start-up
venture.

2. Market Attractiveness (Market Domain/Macro Level):

As we are targeting the consumers who are more passionate towards designing their own stuffs
by themselves, so this type of people will get most benefit from our venture. We are providing

13
fully customized product ensuring high1 quality materials. It would differentiate our venture
from others whereas in our country is lacking behind providing the both together. As customized
stuffs are becoming popular among consumers we can say, the growing trend will be higher in
future.

3. Industry Attractiveness (Industry Domain/Macro Level):

Here we get an idea about how much our venture will sustain in the market. Our unique selling
proposition is customized furniture by best designers, maintaining quality of material. As any
other organisation can duplicate the products' designs easily, we have patent for our designs. so,
we can claim if any organisation duplicates our designs. Here, we need to analyse Porter’s five
forces also to determine industry attractiveness at macro level.

A. Bargaining power of suppliers: In this industry, we would face high bargaining power
of the suppliers of the raw materials. Firstly, our Government has taken reforestation
initiative for the sake of saving environment. So, the domestic market has a certain
number of suppliersof core raw material for possessing furniture. On the other hand,
nowadays, people are likely the coming from Myanmar, Malaysia, Africa, India and
those countries are reliable suppliers. So, the choices are still abundant.

B. Threads of substitutes:In Bangladesh, if we look in this industry there are no direct

substitutes specially, for woods. The furniture which is made from other materials, like
plastic, board, steel have become more reasonable for the consumers but it cannot take
place or make thread for the furniture’s made with wood because it has different image
within customers.

C. Threat from new entrants: This market is growing day by day and has become
crowded. So, many entrants are coming with the new ideas for grabbing consumers
attention and a few barriers to get permission and doing all legal activities before setting
up a venture in this industry.Still it won't create much threads as there is much intense
competitions in this market and our start-up is based on customization; it doesn’t be that
much affected because most brands don’t have customization services.

D. Rivalry: In our country, this industry has boomed up vastly.  There are many rivals but
few rivals having much reputation such as Hatil, Akhter, Otobi art dominating thewhole
market. They are promising to provide quality material, best designs and services. So,
this would dominate the business growth but our business is based oncustomization and
for this it might have different priorities costumers as nowadays most of us like to
customers on things as well our preferences.

E. Bargaining power of buyers: As there are many rivals from the industry, the bargaining
power of buyers will also be very high. They can select the reasonable one within the

14
 similar furniture after doing a basic research. But the people who like to customize, there
won’t have much choices and it would be an advantage for our business strategies.

4.Sustainable Advantage (Industry Domain/Micro Level):

In our country, few organisations in this industry,dominate others such as Hatil, Akhter, Parrtex,
and some others. The industry is growing gradually and becoming popular in foreign countries
also. Theseventures are in this market since many years and got established. Moreover, they are
much more experienced, having loyal customers who won’t switch for another one. But most of
them only have fix services rather than customized one. So, here we might get an extra
advantage by giving the unique designs.

5. Mission, aspiration, propensity for risk (Team Domain):

Our goals and motivation are to provide unique product to every consumer as their preference.
We are committed to provide the best quality product to our consumers. There are many
propensities of risk of falling in our business because many consumers are loyal to others, they
are habitude purchasing from them. So, it won’t be easy for them to switch to other as then know
the quality of the current one. In this industry, we have several weak sides to fallout but our USP
can give us position into the market.

6. Ability to execute CSFsrisk (Team Domain):

We have to make sure the best quality products. There are many medium and small ventures who
are providing designs which look good but the quality is very poor. There are many opportunities
for gaining profits but we would like to get a position by making sure our quality product rather
than gaining the high profit.

7. Connectedness, Up, down, across value chainrisk (Team Domain):

Our venture is based on wood so, we have solid wood from the domestic wood suppliers
especially inside Bogra. We may face difficulties in many areas. In our country, because of
traffic system, it is very common to reach timely. Moreover, if the suppliers increase the price
level per unit then it can hamper our supply chain directly. On the other hand, the government
policies and legal implications can have a great impact on our venture because our government
has taken reforesting initiative.

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Organizational feasibility:

Management prowess:

The process is a self-assessment test in which one venture need to do check their capabilities for
ensuring a strong management team to run the organisation smoothly. Nowadays, every industry
is shifting to online based platforms and giving many more services which making the
consumers easy to select and purchase staying at home. So, we had an idea to provide customize
furniture and for this, we have chosen this platform as it is growing and consumers are also
becoming flexible with the online platform. So, if we can groom our services, it can make a
position. Besides, this industry is much powerful to compete with but our venture has a unique
service which will differentiate us from the competitors. For this, our venture can create
attractiveness, durability to our targeted segments.

Human resources:

As our venture is based on customization, we are aiming to hire professional designers who can
make the accurate design seeing the sketch and the direction of consumers. Moreover, as the
industry is growing, we have sufficient suppliers and distributors available. Moreover, as the
industry has grown up, and people already know about this very well, we don’t need to describe
much about our products from the beginning.
Besides in this market the skilled labour is also available as the market is the second largest
growing market in getting employment opportunities in Bangladesh.

16
 Section – 02

Business Canvas Model For Pinewood Studio:

Key Partners Key Activities Value Proposition Customer Customer
Relationship Segmentation

Freelancer who will Building Online

act as creative website of Develop customer
artistfor sketching the information about 1. Providing a relationship by
platform One stop online
design online. furniture. providing best in
where solution for
quality product and
customer will specific group of
innovative design
choose their people of upper
Wood supplier: Al Customer will according to our
design, class, who
Amin Enterprise, consult online and colour, and customer
shared common
Bogra give their design to types of preference.
needs regarding
us so that we can wood they using hand
make furniture preferred. crafted wooden
according to 2. Offering furniture.
customer choice. reasonable
price than
competitors.
Boosting sales, 3. Furniture
marketing, performance,
monitoring activities aesthetic
and reporting. features,
reliability,
durability
and
serviceability
these
qualities are
fully assured
by us.
4. Giving
discounts
occasionally

Key Resources Channels

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 Direct sales force is website from where the
service is available for selling the customized
Employees who will control the website and
furniture.
give online customer service.

Woodmen who are going to make furniture

and arrange delivery for the customer.

Cost Structure Revenue Streams

Salaries of its employees and woodmen. Generating revenues from online advance
payment of 15%
Van cost
Profit objective 10 % from selling every unit
Equipment cost
furniture.
Inventory cost
Utilities cost

Customer Segmentation: Here we are looking for specific group of people who would love to
decorate their homes, office by using hand crafted wooden furniture according to their choice.
Locally upper class people, those earning level 70000 thousand or plus and who premium
product with quality with their budget; these narrow and niche group of people are appropriate
for purchasing furniture from our online store.

Customer Relationship:Develop customer relationship by providing best in quality product and

innovative design according to our customer preference.Here, customer will get a platform to
consult with our designer who will design the furniture and get feedback from the customer. In
this way we share a strong bond with our customer by interacting thoroughly.

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Value Proposition:We will provide a platform where customer will choose their design, colour,
and types of wood they preferred for making their furniture. Then we are offering reasonable
price than other competitors like Hatil, Otobi, Brothers Furniture etc. Furthermore, furniture
performance, aesthetic features, reliability, durability and serviceability these qualities are fully
assured by us. Besides these, we are giving discounts, coupons occasionally to cheer up our
customers always.

Channels: As it online based platform to design as well as order the furniture so we will focus
direct sales from our own website which is pinewoodstudio.com

Key Activities: We will build online website of information about wooden furniture features,
pictures of different types of furniture, there is an option to choose the wood type and colour
according to customer preference. Customer will consult online and give their design to our
creative artist so that we can make furniture according to customer choice. Not only these,
boosting sales, marketing promotion, monitoring activities of employer to woodmen who will
deliver the product and reporting on time.

Key Partners: It is a very important aspect. Like other business we have partnership to some
freelancer who called as creative artist and they will play role as a designer who will
communicate with the customer and design the furniture according to customer preference. On
the other hand, AL Amin Enterprise, they will be our supplier from Bogra for arrange and deliver
different types of wood.

Key Resource: As it is technology based platform we have intellectual human resource of

employees who will control the website and give online customer service time to time.
Moreover, we have physical human resource of woodmen who will make furniture and arrange
delivery for the customer.

Cost Structure:

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 Salaries Woodmen 7000taka
Creative artist 5000 taka
Employee 20000
Van 200000 fixed cost
Equipment cost 300000 taka cost
inventory 50000 taka cost
Utilities 7000

Note to mention that we have owned a flat at Uttara where it will use as our physical studio and
in the garage woodmen will have enough space to make the designer furniture.

Revenue Streams: We will generate revenues from online advance payment of 15% of the
whole order and profit objective is 5 % from selling every unit furniture.

Market Plan

Market Segmentation and Positioning Strategy for Pinewood Studio:

We have successfully created the STP model in order to have a clear idea about our consumers
and continue to create our marketing strategy accordingly. The model is elaborated in the below
segment:

Market Segmentation:
We have segmented the market into 4 different categories according to our survey:

Geographic Demographic Psychographic Behavioural

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Target Market:
Initially, we have selected out target market on a small parameter. We have a vision to widen the
target market with time since more people are getting technologically educated. The selection of
target market has been made based on market segmentation which is discussed below:

Target Market Based on Geographic segmentation

Country: Bangladesh
City :Dhaka
Language : English and Bangla
Area: Mainly Urban area of Dhaka

Target Market Based on Demographic segmentation

Age: 25 >Gender: Male, Female
Occupation :Self-employed, professional, service holder, business person, industrial people.
Family Size: both extended and nuclear family, office place
Income: 70000>

Target Market Based on Behavioral Segmentation

Usage Occasion: Festive occasion, gift-giving, special occasion, necessity
Benefit sought: Quality, convenience, service level
Loyalty status: Loyal
Buyer readiness: Aware, intention to buy.
Attitude to product: Enthusiast, price conscious
Adopter status: Early adopter

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 Target Market Based on Psychographic Segmentation
 Tech Savvy
 Competitive
 Demanding
 Focuses on quality
 Enthusiastic
 Concern about lifestyle

Positioning:
Pinewood Studio has just started their business. For the time being when we will grow up
broadly, we can assure that customers are going to remember for our quality full product, and
customization facility. Because in this country we are the first one who are giving this
customization facility. We have so many furniture shop like Hatil, Otobi, Akhter Furniture but
they do not give us customized furniture. They only provide their designed furniture to their
customer. In our case we have our own designed furniture and also customized furniture which is
our main attraction for the customer. Nowadays customer does not want to go to physical store
like our mother or father, they just want a good looking and budget friendly designed furniture.
So our customer will remember us for our premium quality furniture and also we are giving them
100% wood made product, not any mixed product. As we are first mover in this business, so we
have a advantage for this. Because customers or consumers are most likely to remember the first
innovative thing for a very long time.

Marketing 4p’s

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Product/service:
We are serving customized furniture to our customer and our business name is ‘Pinewood
Studio’. We are different from typical furniture shop, because they serve people only their
designed furniture but we are making customized furniture. We have our own design too, but our
main focus to satisfy customer by prioritize their preference. We have our own sample to show
our customer on our website, so it may help them to design their desired furniture. Its all going to
100% wood without mixing it with any other material. Our only target is giving our customer a
real thing within budget and also considering their preference. Our service start from a side small
table to king size bed or whole room decoration, we can give them within their budget.

Place:
If anyone wants to buy our furniture, they can just have a look on our website as we have our
own sample of our furniture. And if they like anything they can place order online, but if they
have their own choice then they can simply visit our shop which is at Uttara. Customer mainly
prefers to see the product face to face as they are investing a lot of money in it. So they are more
likely to visit shop and want to see it by their own. As a start up, we only have one shop right
now. But our future goal is to have more shops in all over Bangladesh. And right we are not
paying any rent for this shop, as it is one of our business partners space. We have our own
designer so that if a customer wants to customize then they can describe their design to him/her.

Price:
We are providing premium quality furniture. Our price range starts from 5000(single chair)
to120,000 for whole room decorated furniture. The upper class people whose income is monthly
70000+ can easily buy our product. We have set our price with every product on our website. If a
customer wants to customize anything then price may change in a slight amount. Its not going to
make a significant change in price as we are providing premium design, that’s why changes in
design won’t make any huge difference. We follow value based pricing where prices are based
mostly on consumer perceived value of the product. We are also providing 15% discounts for
our loyal customers.
Promotion:
For our business we have opened a face book page and a website named Pinewood Studio. On
the opening day we had created a event on face book and got a really good response from people.
For our loyal customers we will give them 15% discount on any of their desired furniture. Apart
from that there will be so many occasional discount and offers for the rest of the year.

23
MarketingPlan of Pinewood Studio:
Update our website: Most people will research a company online before they shop in-store. This
means it’s more important that our website must look to be attractive, optimized, and user-
friendly so that customer easily use the website and get the information about us and willingly
purchase product from us by giving their design.
Digital Marketing: Our online furniture store business is basically tech based platform so we will
focus more on search engine optimization, social media marketing, videos so that we can raise
awareness, how pinewood studios’ furniture create value towards their customer by explaining
competitive benefit and features of our product.
Engage our customer: We will give sponsorship to one of our favorite Petuk Couple so that we
can engage with our customer online easily.

Section – 03
Financial Forecasting: We have prepared Pro Former Income statement for 3 years. Here we have done
ratio analysis based on income statement and also done breakeven point to analysis if our online retail

24
business for customized furniture will turn out as a profitable venture or not. As we have varieties of
furniture price is different than each other according customer preference without compromising
quality.

What we have done:

1. We express the total asset and equity of our business for the first year 0f 2020. Though we have
invested 20 lac that is why we did not take any loan from the bank.
2. We have also forecast sales of 2020, 2021, 2022 according to our similar business have done and
given values of units with price according to our website.
3. We have also the mention the monthly cost of our employees so that you can easily predict the
cost for 1 year.
4. In our income statement, from 2021 we have taken 5 lac loan with 5% interest for 5 years and
we have shown interest expense at 2021 and 2022.
5. We have shown 15% tax that must be given to our government according to our profit from the
2nd year of our business.
6. First year we did not take loan so from the income statement in ratio analysis we could not
calculate any liquidity ratio and leverage financial ratio for the first year of 2020.
7. We have also shown fixed cost, variable cost, sales per unit to determine breakeven point.
8. We have also calculated sales and marketing cost yearly and depreciation cost, website cost is
included at maintaining and controlling expense.

Startup Funding:

Starup expense to fund 550000 taka

Startup asset to fund 14500000 taka

1st January, 2020

Current Asset ( cash ) 450000 taka

Inventory of wood 50000

Fixed Asset:
Van 200000
Equipment 300000
Building 1000000
Total Asset 2000000
Equity & Liability
Equity 2000000
Liability 0000000
Total Equity & Liability 2000000

25
 Monthly cost
woodmen wages 5 7000 35000
labour wages 2 5000 10000
van driver salary 1 10000 10000
utilities 7000
employees 3 20000 60000
freelancer( part time) 2 5000 10000

2020 sales forecast table

items price per order ( unit) total taka
order
wardrobe 38000 10 380000
40000 1 40000
X bedroom 17000 4 68000
90000 1 90000
dining table 16000 5 80000
comfortable chair 9000 3 27000
centre table(s) 95000 1 95000
7500 10 75000
11000 2 22000
reading table 7000 5 35000
2021 forecast sales      
5000 8 40000
items price per order orders BDT
living room 65000 3 195000
wardrobe 60000 2 120000
80000 1 80000
  35000 15 525000
shelves 16000 4 64000
  45000 4 180000
tv cabinet 24000 3 72000
bedroom 120000 2 240000
16000 6 96000
  100000 1 100000
divine 13000 10 130000
  17000 10 170000
total order 77 1589000
dining table 26000 1 26000
  20000 4 80000
centre table 11000 6 66000
  95000 3 285000
reading table 7000 8 56000
living room 65000 4 260000
  55000 5 275000
shelves 16000 1 16000
  14500 1 14500
  18000 1 18000
tv cabinet 16000 10 160000
  21000 3 63000 26
divine 5000 4 20000
    85 2674500
X

2022 forecast sales      

total
items price per order orders BDT
wardrobe 60000 2 120000
  35000 17 595000
  30000 10 300000
bedroom 120000 2 240000
  20000 4 80000
  17000 10 170000
  100000 3 300000
dining table 26000 2 52000
  20000 10 200000
  17000 8 136000
  7000 10 70000
  9000 3 27000
centre table 10000 8 80000
  11000 3 33000
  9000 4 36000
  7500 8 60000
reading table 7000 10 70000
  5000 10 50000
shelves 20000 3 60000
  15500 6 93000
tv cabinet 21000 10 210000
  16000 15 240000
divine 9000 4 36000
27
  13000 3 39000
office furniture 80000 2 160000
  70000 3 210000
    170 3667000
Pro Former Income 2020 2021 2022
Statement
BDT BDT BDT
Units 77 Orders 85 Orders 170 Orders
Sales 1589000 2674500 3667000
Cost of direct sales:
Woodmen payment 420000 420000 420000
Labour cost 120000 120000 120000
Van driver cost 120000 120000 120000
Direct material 15000 20000 25000
Indirect material 5000 12000 12000
Total cost of direct sales 680000 6992000 697000

Gross profit 909000 1982500 2970000

Gross profit margin% 57.21 74.13 80.99

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 Operating expense
Sales and marketing 40000 55000 55000
Utilities 84000 84000 84000
Salaries:
Freelancer artist ( part time) 120000 120000 120000
Employees 720000 720000 720000
Maintaining and controlling 15000 20000 20000
cost( depreciation cost
included)
Total cost of operating expense 979000 999000 999000

Profit before interest & tax 983500 1971000

Interest expense loan 126456 126456
Profit after interest expense 857044 1844544
Tax 15 % 128556 276681
Net profit ( 70000) 728488 1567863

1st January, 2020

Financial Ratio table 2020 2021 2022

Liquidity Ratio
Current Ratio nil 3.5 3.5
Quick Ratio nill 3.1 3.1

Profitability Ratio
Gross Profit Margin 57.21% 74.13% 80.99%
Operating profit margin 4.40% 36.77% 53.74%
Net profit margin 4.41% 27.23% 42.76%
Return on asset ratio 0.035 0.49 0.99

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 Leverage financial Ratio
Debt to asset ratio nil 0.25 0.25
Interest coverage ratio nil 7.77 15.5

Investment Measure
ROI 2.8% 29.23% 62.7%

Efficiency Ratio
Asset Turnover Ratio 0.79 1.34 2.34

Fixed Cost 2020

Fixed Cost Person BDT 1 month Yearly

Cost ( 12
BDT months)
BDT
Woodmen wages 5 7000 35000 420000
Labour wages 2 5000 10000 120000
Van driver salary 1 10000 10000 120000
Utilities 7000 84000
Employees 3 20000 60000 720000
Freelancer( part time) 2 5000 10000 120000
Total fixed Cost 1584000

Variable Cost 2020

Variable cost in 12 months BDT

Direct materials 15000

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 Indirect materials 5000

Sales and marketing 40000

Maintaining & controlling 15000

Total variable cost 75000

Variable cost per unit ( 77) 75000/77 = 974 taka

Sales ( 2020) 1589000 taka

Sales unit 77

Sales per unit 20636

Breakeven-point in unit = Fixed cost / (selling per unit – variable cost per unit)

= 1584000/ (20636 – 974)

= 80.56 units

Breakeven-point in taka = Breakeven-point in units* per unit selling price

= 80.56 * 20636

= 1662436 taka.

In our income statement, 2020 we only sold 77 units that is why we did not cover the breakeven point.

BEPP = (Fixed cost + profit objective)/ (unit selling price – variable cost per unit)

=1584000+ 500000 / (20636- 974) = 105 Units need to be sold to get 500000 profit.

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 Fixed cost 2021

Fixed Cost Person BDT 1 month Yearly

Cost ( 12
BDT months)
BDT
Woodmen wages 5 7000 35000 420000
Labor wages 2 5000 10000 120000
Van driver salary 1 10000 10000 120000
Utilities 7000 84000
Employees 3 20000 60000 720000
Freelancer( part time) 2 5000 10000 120000
Interest expense 126456
Total fixed Cost 1710456

Variable Cost 2021

Variable cost in 12 months BDT

Sales ( 2021)
Direct materials 2674500
20000

Indirect
Sales unit materials 8512000

Sales and marketing 55000

Sales per unit 31464

Maintaining & controlling 20000

Total variable cost 107000

Variable cost per unit (85) 107000/ 85 = 1258 taka

Breakeven-point in unit = Fixed cost / (selling per unit – variable cost per unit)

= 1710456/ (31464 – 1258)

= 56.62 units

Breakeven-point in taka = Breakeven-point in units* per unit selling price

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 = 56.62 * 31464

= 1781491 taka.

In our income statement, 2021 our units sold 85 units that is high than the break even units and we
easily cover up the loss at 2020.

BEPP = (Fixed cost + profit objective)/ (unit selling price – variable cost per unit)

= (1710456 + 800000) / (31464- 1258)

= 83.11 Units need to sell to earn profit 8 lac in a year.

Fixed Cost 2022

Fixed Cost Person BDT 1 month Yearly

Cost ( 12
BDT months)
BDT
Woodmen wages 5 7000 35000 420000
Labor wages 2 5000 10000 120000
Van driver salary 1 10000 10000 120000
Utilities 7000 84000
Employees 3 20000 60000 720000
Freelancer( part time) 2 5000 10000 120000
Interest expense 126456
Total fixed Cost 1710456

Variable cost 2022:

Variable cost in 12 months BDT

Direct materials 25000

Indirect materials 12000

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 Sales and marketing 55000

Maintaining & controlling 20000

Total variable cost 112000

Variable cost per unit (170) 112000/ 170 = 659 taka

Sales 2022:

Sales 3667000 taka

Sales unit 170

Sales per unit 21570 taka

Breakeven-point in unit = Fixed cost / (selling per unit – variable cost per unit)

= 1710456/ (21570 – 659)

= 81.7 units

Breakeven-point in taka = Breakeven-point in units* per unit selling price

= 81.7 * 21570

= 1762269 taka.

In our income statement, 2022 our units sold 170 units that is high than the break even units.

BEPP = (Fixed cost + profit objective) / (unit selling price – variable cost per unit)

= (1710456 + 1200000) / (21570 – 659)

= 139 units need to sell to get profit 12 lac in 3 rd year.

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 Section -04
Appendix
Survey Question

It is an online start up business where we sell customized furniture with high quality wood.

1. When do you generally buy furniture?

 Often
 Sometimes
 Most of the time
 When it becomes necessity

2. What is your age range

 from 10 tp 20
 from 20 to 30
 From 30 to 40
 above 40

3. In which area do you live in Bangladesh

 Dhaka
 Chittagong
 Rajshahi
 Khulna
 Barishal
 Sylhet
 Mymensingh

4. Do you like customized Furniture according to your own choice?

 Yes
 No
 Maybe

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5. What type of wood do you prefer the most for your furniture?

 Rose wood
 Oak wood
 all
 Other

6. What kind of purchase would you like to have for buying furniture generally?

 Online
 Offline
 Both

7. What kind of problems You generally face when you buy wooden furniture from
local offline shop?

 Lack of Design
 Lack of sample
 Quality issue

8. If there is any other problem that you may face then please explain that.

Your answer

9. If you get online website where you get chance to get customized your own
furniture according to your own preference then will you be appreciated?

Your answer

10. If we assure you to provide best wood furniture maker from the whole country then
would you like to be our customer?

 Yes
 No
 Maybe

11. For which place generally you by wooden furniture?

 For office
 For house
 For educational institution
 For Other places

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Reference
https://www.bertelsmann.com/news-and-media/news/bertelsmann-supports-further-growth-of-
pepperfry.com.jsp#:~:text=Pepperfry%20is%20the%20leading%20digital,and%20home%20accessories
%20in%20India.&text=Pepperfry%20Founder%20%26%20CEO%20Ambareesh%20Murty,enable%20us
%20to%20achieve%20this.

http://www.nshm.com/pepperfry-com-brought-furniture-online/

https://www.imd.org/research-knowledge/articles/Ikea-v-Pepperfry-India-the-venue-for-a-David-and-
Goliath-furniture-fight/

https://www.lightcastlebd.com/insights/2016/01/31/market-insight-bangladesh-furniture-industry

https://tbsnews.net/economy/industry/future-burns-bright-furniture-38827

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