Bangladesh University of Professionals
“Business Plan”
Entrepreneurship Term Paper
Paper Code: EPD 3501
Submitted to
Assistant Professor
Md. Ahasan Uddin
Faculty of Business Administration
Bangladesh University of Professionals
Submitted by
Name
Adiba Kabir
Ahnaf Allavi
Anik Paul Akash
Syed Rakibul Hasan
ID
B16231017
B16231047
B16231021
B16231073
BBA 2016 (A)
BUP, FBS
Dated: 11th April 2018
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Business Plan on “Revival of Cottage Industry”
RENESA
“Let’s Grow Together”
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Letter of Transmittal
April 11, 2018
Assistant Professor
Md. Ahasan Uddin
Faculty of Business Administration
Bangladesh University of Professionals
Subject: [Submission for semester term paper]
Sir,
This is a great honor for me to present our business plan on “Revival of cottage industry”
authorized under your supervision. The reports endeavors to analyze the learnings and
experiences of our past 5 months-entrepreneurship course.
We are eagerly thankful for your kind support for the preparation of this business plan and
we hope that we would be able to live up to your expectations regarding the quality of
the paper. We have tried to put our best effort for the preparation of this report. Yet if any
shortcomings arise, it will be our pleasure to answer any clarification and suggestion
regarding this report.
Sincerely Yours
On behalf of the team,
Adiba Kabir
Business Undergraduate
BBA 2016 (A)
BUP
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STATEMENT OF AUTHORSHIP
We hereby declare that we are the authors of this Term paper and that we have not
used any sources other than those listed in the bibliography and identified as references.
We further declare that we have not submitted this paper at any other institution.
Date:
Adiba Kabir
Date:
Syed Rakibul Hasan
Date:
Date:
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Ahnaf Allavi
Anik Paul Akash
ACKNOWLEDGEMENT
At the very outset, we are very much thankful to Almighty Allah for giving us the
strength, courage and ability to accomplish the research program as well as the
term paper report in a scheduled time in spite of various complications. It gives us
immense pleasure to thank a large number of individuals for their cordial
cooperation and encouragement which has contributed directly or indirectly in
preparing this report. First of all, we would like to express my gratitude to my
supervisor Assistant Professor Md. Ahasan Uddin for her guidance and feedback
which made everything clear to me to complete this report. At first, we were so
confused that whether we would be able to make a fruitful report but with his
assistance, we found a way to do everything immaculately and in time. It’s been
possible for me to make the report as impeccable as possible.
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CERTIFICATE OF SUPERVISION
This is to certify that Adiba Kabir, Anik Paul Akash, Syed Rakibul Hasan and Ahnaf
Allavi have worked under my supervision in preparing the term paper. This paper
is prepared with sincerity and dedication and carried out with effort by this
team.
Supervisor
April 11th 2018
Assistant Professor
Md. Ahasan Uddin
FBS, BUP
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Contents
1.0 Executive Summary ................................................................................................................................. 9
2.0 Company description ............................................................................................................................ 10
2.1 Company description ........................................................................................................................ 10
2.2 Company History ............................................................................................................................... 10
2.3 Mission Statement, Vision and tagline ............................................................................................. 10
2.4 Current Company Status ................................................................................................................... 11
2.5 Products and services ....................................................................................................................... 11
2.6 Legal status and ownership .............................................................................................................. 11
2.7Key Partners: ...................................................................................................................................... 12
3.0 Industry analysis.................................................................................................................................... 12
3.1 Industry Size, Growth Rate, and Sales Projections: .......................................................................... 12
3.2 Industry Structure: ............................................................................................................................ 14
3.3 Key Success Factors:.......................................................................................................................... 15
3.4 Highlighting Industry Analysis: .......................................................................................................... 15
4.0 Market analysis ..................................................................................................................................... 18
4.1 Market size ........................................................................................................................................ 18
4.2 Target market selection and customer segment .............................................................................. 18
4.3 Buyers Behavior ................................................................................................................................ 19
4.4 Competitor Analysis .......................................................................................................................... 19
5.0 Marketing Plan ...................................................................................................................................... 20
5.1 Overall marketing strategy ............................................................................................................... 20
5.2 Marketing mix ................................................................................................................................... 21
6.0 Management team and company structure ......................................................................................... 22
6.1 Management Team ........................................................................................................................... 22
6.2 Board of advisors .............................................................................................................................. 22
6.3 Board of directors ............................................................................................................................. 22
6.4 Company Structure ........................................................................................................................... 23
7.0 Operation plan ...................................................................................................................................... 24
7.1 General Approach to operations ...................................................................................................... 24
7.2 Business Location .............................................................................................................................. 24
7.3 Facilities and Equipment ................................................................................................................... 24
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8.0 Design and development plan .............................................................................................................. 25
8.1 Development status and task ........................................................................................................... 25
8.2 Challenges and risk ........................................................................................................................... 25
8.3 Property issues .................................................................................................................................. 25
9.0 Financial Projection ............................................................................................................................... 26
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1.0 Executive Summary
The most of the time people talk about the poverty and unemployment problem of Bangladesh.
Several measures have failed to do anything. Survey shows that people like artisan. craftsman in
the villages among them are great in numbers. The prime cause of their not having source of
earning money is not education it is lack of platform to sell their products. People does not have
any idea about these cottage products. On top of that the money lender to whom they are debtors
take the advantage of their not having money to buy materials to produce product by charging
them high interest. So a reasonable and good platform is needed to sell their products and make it
known to both inside and outside of the country. Research have also stated that the natural
resource is not being used as expected.
The cottage products are the symbol of our long-lost tradition. Besides that, the materials used
are eco –friendly and does not need machineries or require high capital investment and
infrastructure. All that is needed is training and short term financial support and mass media
marketing to promote these products. Renessa, our business is such of a kind. It is an online
merchandising company which in collaboration with IT is creating a platform for the poor
fellows to sell their products in the global arena, creating potential market for them and ensuring
the proper use of eco –friendly natural resources.
The company aims at increasing the boom in cottage sector. The collaboration of suppliers who
are basically the poor village artisan and cottage product makers who are getting loan and
training and marketing benefit working with the company thus a significant reduction in
unemployment in rural arena. The suppliers will have to pay a very little amount of interest
which is 1% only. The other revenue drivers are the online selling of the products. Currently the
market size is small but it has an opportunity in future that it will have a huge expansion which
the industry growth is telling.
The customer reach is easy as it is an online platform. The unique and fashionable products are
certainly going to attract the customer. As the price is cheap so anybody can be the buyer of the
product basically the youth who have sense of art and culture. Easy payment method system is
in it creating high possibilities and the return policy making it more convenient. The scale of the
business is very small but since after covering the fixed cost, the expenses per unit of service is
negligible, thus it ensures a sufficient contribution margin for the feasibility of the business.
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2.0 Company description
2.1 Company description
Renessa is an online merchandising company who are giving a platform to the laborer and artisan
of cottage products to sell their products in both within country and in global platform. The aim is
to revive the long lost culture of Bangladesh traditional cottage products which includes giving
sufficient help to the supplier (Artisan and Labor who make products) by selling their products
online and also giving them financial support (Loans, Advance Payments) and Technological
support (Training). Currently the company will sell only cottage products along with few
electronic accessories but in future it has a plan to set up its own factory for making products.
2.2 Company History
Renessa will be the largest company in Bangladesh who will be selling cottage products both
within and outside the company. The initiator Rakib with his friend Business analyst Adiba Kabir
founded the company in June 15,2018. The duo duo having gone from a small basement operation
Rakibs home successfully launching their online store and scaling their operations. After both
founders worked for several years in the retail and fashion industries respectively, one thing
became increasingly clear to both of them, the trend is not long lasting and with increasing changes
in fashion trend the cottage products are becoming popular day by day. But the products maker is
deprived of their rights and getting poor payment as they don’t have training, education and
platform to sell their products. while getting the products from them the retailer is making
increasingly high profit with charging high prices. To make an end of the situation and to bring
the best service in town the duo with Ahnaf allavi who was the former supply chain head of an
MNC formed the company committing to providing the best in class customer service in addition
to working with only the most detail oriented local manufacturers and promoting eco-friendly
fashion to the mainstream.
2.3 Mission Statement, Vision and tagline
Reviving the long lost tradition and culture with reducing poverty and creating potential
employment opportunity to the artisan and crafts makers.
Vision and Tagline:
The vision is to create potential market and export destination for traditional and cottage related
product with association of removing the poverty. The tagline is “Let us grow together”
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2.4 Current Company Status
Renessa was established in June 15,2018 with head office located in Motijhil commercial area.
Currently it has 4 offices or hubs in Dhaka for inventory management located in four important
places of the capital city which are Dhanmondi , Mirpur , Uttara , Gulshan, . Also the company
has a future plan of establishing 7 more hubs in outside Dhaka. Besides that, the company owns
two showrooms in Gulshan and uttra for attracting customer and product display. Since sourcing,
manufacturing, and selling out of Rakib’s basement to friends, family, and through local retailers,
the company has grown to have its own online store, relationships with suppliers (artisan and crafts
maker) of Gazipur ,Norshingdi ,Chittagong .
2.5 Products and services
Renessa has variety of products and services included in its product line. The traditional and
trendy fashionable products and home decoration related products such as Embroidered Quilts
(wall-mat, Pictionary, home décor) Textile (money bag, wallets, handbags, parts) Electronic
accessories (science experiments, science fair, class assignments) Ornaments (wooden, nonmetallic) Pottery (variety, colourful and show-piece products) (Du art and craft) Online flower
selling (design and decoration with flowers) Brass and bell-metal (novelty products). Besides
that, loan amount for the supplier for purchasing their raw materials with a little interest rate.
Beside that electronic parts for science fair and national robotics competition.
2.6 Legal status and ownership
The company will work as a corporation with majority shares hold by the founding trio Rakib,
Allavi and Adiba in equal amount of capital in shares. An additional investor is invited to hold the
10% of shares plans to issue 10,000 shares of BDT1000 per value common stock. The issued and
outstanding common stock would be 10000000. In return for investing 10000000 in the company's
capital, the new investor would receive10,000shares at BDT1000 par value, or 10% ownership.
The new investor would be invited to discuss the quantity and quality of the stock to be issued,
before the incorporation procedures are started. Additional information about investor's interest,
entry, and exit strategy is available in the important assumptions section of this plan. The company
is registered with following all the legal procedures with the help of legal partner KM Hasan
advocacy firm.
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2.7Key Partners:
The key partners are the suppliers who are the artisan and craft makers from whom we get the
products. Also government and its cottage industry control authority BISIC who will give the
company employees and suppliers 360-degree marketing support, technical assistance, financial
support as well. The law firm called KM Hasan advocacy firm will give legal assistance to the
company. Also kashem & Rafiq CA firm which will give us the auditory help.
3.0 Industry analysis
3.1 Industry Size, Growth Rate, and Sales Projections:
The online merchandising system and the cottage industry labor, artisan, and products and
products are highly in alien terms with each other. So, to get a clear picture of the industry we
will follow through the colliding industries of e commerce and the heritage of our country ‘The
cottage industry’.
Cottage Industry is the traditional artisanship of the rural people of Bangladesh, who produce
various household items with locally available raw materials and artistic skills inherited from
their ancestors. Cottage industry are primarily handicrafts, artistic work in wood and metal,
amateur artworks and rural artistry. Traditionally, cottage industries have been rural-based, but in
course of time and with technological advancements, they spread to urban areas to avail of
transport and marketing facilities and financial support from investment sources. The area of
cottage industries has now broadened astonishingly from simple indigenous technology based
and home-made products to sophisticated handicrafts of wide varieties.
E‐commerce or electronic commerce is the conduct of a financial transactions by electronic
means with the huge success of commerce on the Internet, e commerce usually
Refers to shopping at online stores on the worldwide Web, also known as e‐commerce Websites.
E commerce industry has seen a drastic growth in day to day market share over the past decade.
Easy to use web application and widespread internet use has popularized features like online
transaction and web business startup.
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Bangladesh’s e-commerce sector is expected to grow 70 per cent in 2017 as the rollout of 3G
internet 3-4 years back led to rapid adoption of online shopping.
The size of Bangladesh’s e-commerce market is estimated to be $110-115 million ( around Tk
900 crore ) this year, growing from $65-70 million in 2016, said the report referring to RedSeer
Consulting. The e-commerce size is still is a mere 0.7 per cent of the country’s total retail
market.
Rocket internet-backed online marketplace Daraz, Foxconn-backed e-retailer Pickaboo,
Bagdoom and Chaldal are among the leading startups in the country.
Internet penetration to 40 per cent of Bangladesh’s 165-million population has bolstered the
growth of local e-commerce, F-commerce (merchants conducting online business through
facebook pages) and e-grocery startups.
The size of Bangladesh’s e-grocery market is much smaller at $4-5 million, or about 0.03 per
cent of the country’s overall grocery market. Even so, analysts are predicting that Bangladesh’s
e-commerce market will surge to $20 billion by 2020 according to Goldman Sachs.
But as we go on projecting the sales for this very business we see insignificant market threats as
a result of lacking existing competitors in the market to sell the same class products. But we can
also assume that growing number of market competitors might affect the sales growth in coming
years. An assumed sales projection chart of 3 year tenure is shown:
Growth Rate
3.5
3
2.5
2
1.5
1
0.5
0
0
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0.5
1
1.5
2
2.5
3
3.5
3.2 Industry Structure:
A. Business to Consumers (B2C):
B2C Stands for business to Consumer as the name suggests, it is the model taking businesses and
consumers interaction. Online Business sells to individuals. The basic concept of this model is to
sell the product online to the consumers. B2C or Business to Consumer has lately gained a big
popularity due to simplified and accelerated way to buy products. B2C is the indirect trade between
the company and consumers. It provides direct selling through online. For example: if someone
want to sell goods and services to customer so that anybody can purchase any products directly
from supplier’s website. Directly interact with the customers is the main difference with other
business model. As B2B it manages directly relationship with consumers, B2C Supply chains
normally deal with business that are related to the customer.
B. Business to Business (B2B):
B2B Stands for Business To Business. It Consists of the largest form of Ecommerce. This model
defines that buyer And seller are two different entities. It is similar to manufacturer issuing goods
to the retailer or wholesaler. Dell Deals computers and other associated accessories online but it is
does not make up all those products. So, in govern to deal those products, first step is to purchases
them from unlike businesses i.e. the producers of those products.
C. Consumer to Consumer (C2C):
C2C Stands for Consumer To Consumer. Consumer to Consumer (C2C) or (Citizen To citizen)
electronic commerce involves the electronically facilitated transactions between consumers
through some third party. A common example is the online auction, in which a consumer posts an
item for sale and other consumers bid to purchase it; the third Party generally charges a flat fee or
commission. The Sites are only intermediaries, just there to match consumers. They do not have
to check quality of the products being offered. It helps the online dealing of goods or services
among people. Though there is no major parties needed but the parties will not fulfill the
transaction without the program which is supplied by the online market dealer.
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D. Peer to Peer (P2P):
It is a discipline that deal itself which assists people to instantly shares related computer files and
computer sources without having to interact with central webserver. Peer to Peer is sometimes
unified with e-commerce type C2C Because of the same parties participating in the transaction.
Though it is distinguished by the process itself.P2P is not only an e-commerce type but also a
technology that allows people to share computer files and computer resources without going
through a central webserver. The required software should be installed by both sides so that they
can communicate on the common platform. As from the beginning this type of e-Commerce has
been launched to the free usage, it has quite low revenue. It consists in mutual help of consumers.
This model of transaction often entangles cyber laws. The transactions without the program which
is supplied by the online market dealer.
3.3 Key Success Factors:
1. Regulation of product pricing
2. Maintaining high quality products
3. Improving store accessibility
4. Making an integrated marketing plan
5. Taking advantage of M-commerce.
3.4 Highlighting Industry Analysis:
In this highlighted segment of the industry analysis we will see the challenges in the booming ecommerce industry of Bangladesh considering 5 vital measurement instrument of the atmosphere
of the business which are; Political factor, Economical factor , Social factor , Technological factor
, Environmental factor , legal factor.
Political factors:
While the threats may not be the same before the e-retailers as the physical retailers, still there
are several political hurdles before them. There are several risk factors affecting the e-businesses.
Several news reports highlight how Red Tape in Bangladesh can become major difficulty in the
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way of new businesses trying to extend their presence here. The political and regulatory
challenges before the e-businesses have kept rising. Political issues are not limited to just those
discussed above but there are many more. Political stability in most regions of the world leads to
economic stability. Political chaos can result to disruption of business both online and physical.
Overall, political issues can have a significant impact on ecommerce and its growth.
Economic factors:
Economic factors are very significant in terms of businesses. Whether it is an online business or
in the area of e-retail, economic factors can have a significant effect. It is because economic
factors are directly related to business and their effect is also direct on business revenue and
profits. During the period of recession, spending had decreased people had adopted cost cutting
measures as the level of economic activity and employment gone down. During such periods
when economic activity has gone down, the profits and revenue of businesses can go down. Ebusinesses too cannot remain unaffected. Economic fluctuations since the recession have also
kept affecting businesses from time to time since the recession. In developing economy like
Bangladesh, these economic fluctuations affected both global and local businesses. Now that the
recession has passed and economic activity has returned on track, the ecommerce industry has
flourished in the recent years. Higher economic activity means faster growth and higher revenue
for the Ecommerce industry whereas lower economic activity means just its opposite. In this
way, economic factors can have a direct and deep impact in the ecommerce industry of this
country.
Social factors:
Socio cultural factors too have a deep impact in ecommerce industry. Most importantly e-retail
brands find it the easiest to flourish locally. Growth in foreign markets can be full of challenges,
as a result of unique specification of products. Changing trends can also have an impact on
businesses. The growing use of mobile technology has affected ecommerce. In most societies the
mobile technology has been very popular and a larger number of people worldwide are now
using mobile gadgets for shopping and other purposes. Socio cultural factors affect businesses in
other ways too. Cultural factors have an impact on how these ecommerce businesses market
themselves. In several societies of the world ecommerce is still seen as a sign of Westernization
due to which it has seen low growth in these areas.
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Technological:
Technological factors are very important in the context of the ecommerce industry. It is because
the industry relies heavily on technology. Everything is based on technology in e-retail from
sales to customer service. All the ecommerce brands are in a race to be technologically ahead of
their competitors. From Daraz to Pathao and Bikroy.com, every brand is investing a lot in
technology to find faster growth. Technology decides several things in the ecommerce world
from popularity to profits. The reason that Amazon is ahead of the others is because it is
technologically ahead of the others. It has managed its customer experience so well that its
popularity is very high. In this way, technology is a major influence on businesses and in case of
ecommerce technological factors acquire a very special importance.
Environmental:
Environmental factors too have a special importance in the context of Ecommerce industry.
While the direct environmental impact of this industry is very low and nearly zero, it still focuses
heavily on sustainability. Brands like Amazon have invested heavily in technology. Even in
Ecommerce there are several areas where investing in sustainability can be highly productive.
From sustainable packaging to waste reduction and renewable energy there are several areas
where the e-retailers can invest in sustainability. Amazon has invested in renewable energy to
gain freedom from the use of non-renewable energy resources.
Legal:
Legal compliance is just as important for the businesses globally. Any tussle with the law can be
a costly affair and even the e-retail brands can become a target unless they take care of
compliance. It is why the big E-retail brands have separate teams to take care of the legal issues.
Noncompliance can result in financial losses as well as loss of image and reputation. From labor
laws to sustainability laws, there are several areas where the e-retail brands have to be careful
regarding compliance. Moreover, these laws differ from nation to nation and market to market
and compliance in every area is important. So, in case of the companies operating in countries
like bangladesh law can lead to major pressures and an increase in operational costs. The e-retail
brands also have to be careful about the applicable laws and compliance.
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4.0 Market analysis
4.1 Market size
A recent report looking at the Global cottage product consumption and export by 2012-2013 was
worth an estimated $51.6 billion and is at pace to grow to $56.2 billion by the year 2014.In
Bangladesh where the growth was like 5% in FY2014, now it is 10.7% in FY 2017. The growth
rate is almost double. So the growth can very well have understood as well as the demand also.
The research report has given enough proofs that the market is going to boom very soon.
4.2 Target market selection and customer segment
 Youth (Today’s trendy youth are hugely influenced by an influx of new fashion. Our
aesthetic products will give them a vintage feeling.)
 Sophisticated people (The people who know the real value of fashion and more importantly
culture will tend to have an emotional attachment to our products.)
 Massive market for woman (With almost 50% of Bangladesh’s population and some of our
product lines being dedicated exclusively for women, it is bound to have a positive impact)
 Students especially from science background (One of our product lines, electronic
accessories are dedicated only for them).

Social Media Savvy graciously active on popular social networks like Facebook, Twitter,
Instagram, Pinterest, and Tumblr

Fashion Forward with a keen eye on their day to day wear, these male and female
fashionistas dress to impress

Addicted to Mobile they Instagram their food, check their Facebook status while waiting
in line, and tweet every traffic disruption they experience.
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4.3 Buyers Behavior
However, when it comes to consumer behavior and trends most cottage products purchaser value
t citing the reason over its brand name. Interestingly enough though, 73 percent prefer to purchase
the same brand as the one they own with men showing more loyalty at 64 percent than women at
45 percent.
Going deeper into the growing level of awareness around environmental sustainability and climate
change, the cottage Incorporated 2013 Environment Survey found that 51 percent of consumers
say that environmentally friendliness is important to their purchase decisions. Digging a little
further, about 33 percent are actually more likely to seek out environmentally products for
themselves.
When it comes to the material of their products though, nearly 72 percent of survey respondents
say that natural raw materials used for production are better for the environment than synthetics,
with 51 percent of consumers willing to pay more for them. Such trends are driving global brands
like Gucci, Timberland, and others to focus.
4.4 Competitor Analysis
There are not much companies or organization who are selling the cottage products. The prominent
one are Bengal craft, kumudini craft and Aarong . So for varieties of products the company are
getting advantage here. Besides that, Aarong sell their cottage products offline while the other two
are selling online. The prices are high in Aarong while other two charges less but do not have good
marketing and promotion policy like Aarong have. The Company is getting advantages also from
that point view.
By swot analysis we see that
Our strengths are new innovative designs and untapped market. Weakness are the customer’s
loyalty to other brands. Our opportunity to expand the business and innovate new product is huge.
Other new entrants threat our existence by copying our designs.
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5.0 Marketing Plan
5.1 Overall marketing strategy
For the marketing of the products as it is not well known the marketing is a big challenge for them.
For marketing the company will follow two marketing strategy both online and offline. As we are
getting government full fledge support so our first strategy is to arrange exhibitions to promote our
product in various national event liker SME fair and showrooms for offline selling. The online or
the internet world are the biggest arena to promote or to reach our customer. The online and offline
marketing things are stated below.

SEO: Our content and blogging efforts will be targeted at having us rank competitively for
keywords like “long lost culture”, “tradition”, and “eco-friendly products”.

Paid Search: We will invest in both Google Adwords and Facebook Ads to take advantage
of their PPC services with optimized landing pages for conversion.

Instagram: We will launch campaigns and contest to encourage user-generated images
which we will then upload to our product pages to build a community around our brand
and the values we stand for.

TV Advertising Renessa for being the largest online business in terms of selling cottage
products has using the concept of TV advertising from the very beginning of its journey.
TV ads has become on the most important and vital way of communicating with the
different guys from different sectors. It has potential market in Bangladesh and that’s why
it’s still working better.

Billboard: Renessa uses the painted billboard on that it can easily have to public access to
share what actually this company is doing. It’s a huge opportunity for them to make them
different in the market through the strategy of billboard selection.
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
Facebook: Now a day’s not only personal branding but also for organizational perspective
Facebook has been using worldwide. For this reason, Renessa also uses Facebook to reach
its target customers as its online selling website where everyone can get all sorts of services
like selling and purchasing anything. Renessa took Facebook as a potential source of
sharing information and captures the market of the young generation.

Radio Ads: In our country almost 73% mobile phone has radio accessibility and 34% use
the utility of Radio. So Renessa uses the Radio ads strategy to reach the customers because
it’s another easiest way to reach the customers.

YouTube: Most of consumers in our country are using YouTube for their different
purposes and Renessa is getting the real test from its marketing strategy.

Mobile Marketing Advertising: Renessa has been using this marketing strategy to capture
the market and information their offerings to the mass people. Those who have internet
access and who is willing to buy something is the target customer of Renessa

Networking: An extremely important way to promote your website is through networking.
Renessa has been trying to build strong network among the country and create good image
in the market.

PR: We will promote our story, values, and fashion to leading fashion blogs and print
magazines emphasizing our earth-friendly and ethically manufactured clothing

Business Development: We will actively look for the most popular local fashion boutiques
frequented by our target market that shares in our values and beliefs.
5.2 Marketing mix
Service Product: The service is to replace the foreign products which are expensive rather resulting
in using our own product.
Price: Very cheap and convenient to any user of the product.
Promotions: The service will be promoted though our app and digital marketing and will be
promoted as a flexible and compatible product for user.
Distribution: For distribution and smooth reaching of the customer there will be both online and
offline distribution.
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6.0 Management team and company structure
6.1 Management Team
The management team has 5 developers and 3 system engineer for frond and back end development. The
development process is to be supervised by head of R&D department who is hired by the company having
an experience of 10 years in the IT field. For the operation and other business process will be supervised
by CEO with association of CFO and MD and other two deputy managing directors. The marketing and
sales department head is to implement the company policy in field hired by organization.
6.2 Board of advisors
Since the business is in its initial phase and we need a lot of marketing strategy and technical
assistances for smooth running of our business. The area head of BISIC will be an advisor for
export, training and other technical assistance.
6.3 Board of directors
The board of directors will be consisting of Chairman and CEO, CFO, MD, DMD and One
independent director.
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6.4 Company Structure
Chairman
CEO
CFO
MD
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R&D Head
HeadMarketing
7.0 Operation plan
7.1 General Approach to operations
As soon as we will be having the Trade License and TIN certificate, the development process
will begin with a small development team. The approach for the main operations will be starting
from the launch of website and developed apps.
7.2 Business Location
The head office will be located in Motijhil commercial area as also the main inventory place.
Besides there will be four more hub in Uttra , Rampura ,Bonani and in Gulshan . The sales will be
conducted through websites and apps in line with this 5 hub and gradually three or four more hub
will be established in the metropolitan city of other divisions of the country.
7.3 Facilities and Equipment
The facilities that Renessa will give is the buy and sell of traditional products and also loan and
other support for the suppliers with low amount of interest. Not only that the supplier or seller will
be able to do free marketing to make their products known. The equipment’s are printers,
computer, routers, server, websites and apps which are the prime tools to sell products and to reach
customers. The website and app is user friendly and payments can be made through easy medium
via individual account and also via Bikash, rocket, Paypal , Payza , Pioneer.
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8.0 Design and development plan
8.1 Development status and task
To ensure the highest customer satisfaction Renessa has started some development project which
is still near the dear of implementation as there is yet to check market and financial feasibility.
Some new features are tending to be added with the old features. They are designed and other
apps for android user are in the development process.
8.2 Challenges and risk
The most vital challenge is the maintenance of the website and inventory. Inventory is the place
where the inbounding and outbounding work take place. The server management is also a great
concern. As we have very few members as human resource and a traffic and overflow might
cause the whole system to be collapsed. That can block the service which can cause customer
dissatisfaction.
8.3 Property issues
Trade License and TIN certificate- The substance of the business is to be secured by the
exchange permit and TIN authentication.
Trademark- Business Logo and Tagline will be secured by the trademark
Copyright- Website will be subjected to copyright security
Patent- The application we will give is to be protected and the administration is to be limited to
be duplicated by different associations.
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9.0 Financial Projection
Forecasted Income Statement
Pro Forma Income Statement
Sales
Direct Cost of Sales
Other Production Expenses
Total Cost of Sales
Gross Margin
Gross Margin %
Expenses
Payroll
Sales and Marketing and Other Expenses
Depreciation
Leased Equipment
Utilities
Insurance
Rent
Payroll Taxes
Other
Total Operating Expenses
Profit Before Interest and Taxes
EBITDA
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales
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Year 1
Year 2
Year 3
395,650 610,000
750,000
50,370
82,000
105,000
50,370
82,000
105,000
100,740 164,000
210,000
294,910 446,000
40,000
74.54%
73.11%
72%
177,600
0
7,140
0
6,000
6,000
24,000
26,640
0
247,380
47,530
54,670
13,830
10,110
23,590
5.96%
192,600
130,000
7,140
0
6,000
6,000
24,000
28,890
0
394,630
51,370
58,510
12,750
11,586
27,034
4.43%
212,000
150,000
7,140
0
6,000
6,000
24,000
31,800
0
436,940
103,060
110,200
12,570
27,147
63,343
8.45%
Forecasted Balance Sheet
Year 1
Year 2
Year 3
Assets
Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets
137,293 168,118 220,978
6,270
10,207
13,070
19,800
39,600
59,400
163,363 217,926 293,448
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
50,000
50,000
50,000
7,140
14,280
21,420
42,860
35,720
28,580
Total Assets
206,223 253,646 322,028
Liabilities and Capital
Year 1
Year 2
Year 3
Current Liabilities
Accounts Payable
9,633
31,822
38,661
Current Borrowing
0
0
0
Other Current Liabilities
0
0
0
9,633
31,822
38,661
Subtotal Current Liabilities
Long-term Liabilities
128,400 126,600 124,800
Total Liabilities
138,033 158,422 163,461
Paid-in Capital
200,000 200,000 200,000
Retained Earnings
Earnings
23,590
27,034
Total Capital
68,190
95,224 158,567
Total Liabilities and Capital
Net Worth
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63,343
206,223 253,646 322,028
68,190
95,224
158,567
Forecasted cash flow statement
Pro Forma Cash Flow
Year 1
Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance
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395,650
395,650
Year 2
610,000
610,000
Year 3
750,000
750,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
395,650
610,000
750,000
Year 1
Year 2
Year 3
177,600
103,957
281,557
192,600
364,975
557,575
212,000
463,540
675,540
0
0
0
21,600
19,800
0
0
322,957
72,693
137,293
0
0
0
1,800
19,800
0
0
579,175
30,825
168,118
0
0
0
1,800
19,800
0
0
697,140
52,860
220,978
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