Business Plan

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 1. Contents
2. Introduction ............................................. 3
3. Executive Summery ................................ 4
4. Industry Analysis: ................................... 4
5. Description of the Venture ...................... 7
6. Production Plan ....................................... 8
7. Marketing plan ........................................ 8
8. Organizational Plan ................................. 9
9. Assessment of Risk ............................... 10
10. Cost of production statement (For two
years) ......................................................... 11
11. Financial Plan (For two years) ............ 12
12. Pro-forma Income Statement............... 13
13. Pro-forma Balance Statement .............. 14
14. Source and application of capital: ....... 15
15. Reference: ............................................ 16

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 2. Introduction

Venture: Solar Power

Source of new idea: Government, Existing distribution channel

Method generating idea: Brain storming

Location: Bangladesh Advance Technology (Solar power

solution) 29, Kallyanpur, Mirpur Road, Dhaka.

Nature of Business:
Partnership Business

Statement of financing need:

To running my business I have to need fixed capital and Pre-production

Capital.

Fixed Capital: Furniture, Equipment, Computer, Total Capital FIXED

Capital-80,000

Pre-production Capital: Rent agreement, Trade license Export-

Import License and other expense. Total Pre-production Capital-
140,000

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 3. Executive Summery
Bangladesh is developing country. It’s develop has hampered in many cause.
Or problem one of the main problem is electricity. Electricity problems
hamper our developing process. To reduce electricity problems and self-
electricity produce, here I try to analysis marketing plan, production plan,
and financial plan. In business our total investment 7,00,000. We hope our
business helps to reduce electricity problems and self electricity produce as
well as social responsibility for the society

4. Industry Analysis:

Future outlook and trends:

At present this types of business is increasing day by day. This business future is very
bright. Because our natural gas and all types of natural energy will be finished. Our all
power plants depend on natural gas.

It is anxiety for us. So we must think alternatives source. In developed country already
use this system .But it is new idea or new thinking for our country.
Government also encourage to use this system. So this business future outlook and
trend’s is very well.

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Analysis of competitors:
It is evaluated by Potters five forces. That’s are
1. Threat of new entrants
2. Threat of substitute product
3. Bargaining power of buyers
4. Bargaining power of suppliers
5. Rivalry among the existing competitors.

1. Threat of new entrants:

In my business threat of new entrants is high. Due to easy of
government. Rules and regulation. But here market exist is so much
low. So Competitors are increased day by day.NGO are now main
threat for my business.

2. Threat of substitute product:

Substitute product of my business are Charger light, DESCO, and DESA. At

present their capacity is not fulfilled. That’s why threat of substitute product is
low.

3. Bargaining power of buyers

At now main problem is electricity. So bargaining power of buyer is low. But my

product price is high. So, I want to sell my product in installment process.

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 4. Bargaining power of suppliers

Bargaining power of suppliers is high .they control the Market price.

5. Rivalry among the existing competitors.

Solar power business is growing business. For staying in the market is so tuff for
myself. By using high technology we will be stayed for long time.

Market segmentation:

In my business Market segmentations are:

1. Rural area
2. Urban area: Industrial area, Office Building, Flat

My main area is urban area specially industrial area, office building

Industry and Market Analysis:

At present my target customer is industrialist, high rise building, and office building and
flat.
In future I want to increase my profit.

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 5. Description of the Venture

Products= Solar power, LED Light

Service= to setup solar power system, providing LED light system

Size of Business: Small business

Office Equipment and Personnel = Office equipment’s are computer, equipment.

Personnel = Office pain-1

Technical expert-3

Background of Entrepreneurs:

Rakib Ahmed
Graduation complete from Islamic University
Age: 22

Istiak Tanvir Abdullah

Graduation complete from Eastern University
Age: 22

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 6. Production Plan

In my business production plan fully depend on according to demand and supply.

Customer convinces is the main source of sales. More customer convince increase my
sales

Size of business: Small business

Name of suppliers of raw Materials: Solar panel, LED light comes from China

Suppliers name: Hong Kong trade International

China, Phone: 710820

7. Marketing plan
Pricing: Pricing system of my product is installment process. If any one purchase our
product than payment system procedures is firstly payment 60% and 40%is paid in
installment.

Distribution: Distribution system is directed.

Promotion: Advertising in Newspaper, Banner, Sign board, Personal selling.

Product Forecast: In future we want to purchase high tech solar panel.

Control: To control all marketing plan we should consider distribution channel ware
house pricing strategy etc. If we control above this elements. We will be achieved success
in future.

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 8. Organizational Plan

Form of ownership: Form of ownership is partnership way.

Identification of partners or principal share holder.

1. Profit is divided by equally.

2. Business is running by two partners.
3. Every month owner will take 20,000 salary.
4. All problems or uncertain problems or Business related problem is solved by
partnership act- 1932.

Authority of principal:

1. Two partners are beard equal authority.

2. All decision in Business related is taken by two partners.

Roles and responsibility of members of organization.

 Every one responsible for his work even owners.

 Every one accountable for his duty

 When any one purchase anything we must be submitted the cash memo,
Memorandum, Bill.

 All information of the Business is secreted. For business benefit we can flash
information otherwise not.

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 9. Assessment of Risk
Evaluate weakness of business:

1. Poor capital.
2. High cost of product import.
3. Installment process.
4. Poor expert.

New technologies we want to use latest technology in solar panel system. Due to capital
crisis at present we can’t use new technology. We hope in future we use new
technologies.

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 10. Cost of production statement (For two
years)

Particulars Tk. Tk. Tk.

Direct material

Purchase Solar (8x 24x 20000) 38,40000

Other accessories 20,000
Shipping Cost 40,000
Carrying cost 30,000
Tax & Duty 1,000

Cost of goods sold 39,31000

Marketing & Selling overhead

Administrative cost 16,000

Stationary 2,000
Advertising 20,000
Other expense 10,000
Employee salary 60,000

1,08,000

40,39,000
40% Profit 16,15,600

Total Sales 56,54,600

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 11. Financial Plan (For two years)
Particulars Taka
Solar panel (8 x 24 Month x 20,000) 384000
Interest expense 85000
Other accessories 20000
Shipping cost 40000
Carrying cost 30000
Tax & duty cost 12000
Export & Import License 80000
Trade License 5000
Loan (17%) 500000
Computer 20000
Furniture 25000
Equipment & Machine 20000
Rent Agreement (for five years) 100000
Interest payable 8000
Salary 60000
Other expense 10000
Stationary 2000
Advertising cost 20000
Administrative expense 16000

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 12. Pro-forma Income Statement

Particular Tk. Tk.

Sales 56,54,600
(-) Cost of goods sold 39,31,000

Gross profit 17,23,600

Administrative expense 16,000
Stationary 2,000
Other expenses 10,000
Salary 60,000
Advertising cost 20,000
Rent Agreement 40,000

Total Operating Expense 1,48,000

15,75,600

Interest expense 85,000

Profit before tax 14,90,600

Tax (20%) 2,98,120

Net Profit 11,92,480

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 13. Pro-forma Balance Statement

Particular Tk. Tk.

Fixed asset

Equipment & Machinery 20,000

(-) Depreciation 500
19,500
Computer 20,000
(-) Depreciation 1000
19,000

Furniture 25,000
(-) Depreciation 500
24,500

Export & Import License 80,000

Trade license 5,000

Current Asset

Rent Agreement 60,000

Liabilities and owner equity 2,08,000

Loan (5 years) 2,00,000

Interest payable 8,000
2,08,000

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 14. Source and application of capital:
In business we are investing 700000

Internal Source:
RAKIB 100000
ABDULLAH 100000

External source:

Bank Loan 500000

We have taken loan from AB Bank. For small business purpose. Here interest rate 17%.
We have shown some documents that are given bellow-

Trade license.
Export & Import license
Partnership agreement documents.
Rent agreement documents.
Pro-forma income sheet & balance sheet

First we fill up the application form with attached above those documents. Then they
visited our office and observation our documents. Then they will give us loan.

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 15. Reference:
Mozibar Rahman,
Chairman,
BRB Group

SAYEED RAHMAN
Managing Director,
Arab Bangladesh Bank

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