1
Department of Management
North South university
Entrepreneurship Practice
Mohammad Asif Gazi
Section- 09
COURSE: MGT 368
Fall 2019
Faculty: MAG
Business name: COMPASS
Submitted By
Name
ID
Ismat Jahan Eva
Zamila Akter Maliha
Taiba Un Zaman
Aquib Ajwad Bhuiyan
Sheikh Istiaque Shudipto
1610371030
1610701030
1811789630
1421867030
1610074030
2
LETTER OF TRANSMITTALS
Mohammad Asif Gazi
Course Instructor
Entrepreneurship (Mgt-368)
School of Business
North South University
Subject: Submission of business plan
Sir, it was a great pleasure for us to submit this business plan on our business idea. We are
pleased to inform you that we have thoroughly enjoyed working through this business plan and
all of our representatives have contributed efficiently and moreover effectively to finish this
significant report. This has enabled us to gain valuable knowledge and experience that will help
us significantly in our future. Therefore, we would like to take this opportunity to convey our
deep regards for your valuable guidance and sincere inspiration. We hope you will enjoy reading
this paper.
Yours sincerely,
Ismat Jahan Eva
Zamila Akter Maliha
Taiba Un Zaman
Aquib Ajwad Bhuiyan
Sheikh Istiaque Shudipto
1610371030
1610701030
1811789630
1421867030
1610074030
3
Contents
1. Introduction: ...................................................................................................................................4
Nature of the business: ....................................................................................................................4
2.Evidence of a strong team, with the relevant skills/experience.............................................................5
3. Market gap that our service will address ...........................................................................................6
4. Business Environment Analysis/ Evidence of market opportunity
by research ..................................8
PESTEL Analysis ...........................................................................................................................8
Porter's five forces ........................................................................................................................ 10
SWOT ......................................................................................................................................... 12
5. Business Model Canvas................................................................................................................. 13
6. Description of venture ................................................................................................................... 15
7. Service delivery plan ..................................................................................................................... 17
Suppliers of the merchandise ......................................................................................................... 17
Inventory control system ............................................................................................................... 17
Flow of services to customers ........................................................................................................ 17
Technology utilization requirements .............................................................................................. 18
8.Operational Plan............................................................................................................................ 18
a. Description of company's operation............................................................................................... 18
b. Flow of orders for service ............................................................................................................. 19
c. Technology Utilization ................................................................................................................. 20
9.Market Plan (7 P’s) ........................................................................................................................ 20
10. Organizational plan ..................................................................................................................... 22
11. Risk assessment .......................................................................................................................... 25
Weakness ..................................................................................................................................... 25
New technology............................................................................................................................ 25
12. Financial plan ............................................................................................................................. 25
ASSUMPTIONS (Based on Cash Flow): Cash Receipts: ................................................................. 25
Pro forma income statement .......................................................................................................... 28
Pro forma balance sheet................................................................................................................. 29
Breakeven Analysis ...................................................................................................................... 30
Growth Analysis ........................................................................................................................... 31
Reference:........................................................................................................................................ 33
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1. Introduction:
Name of the company: COMPASS
Name(s) and address(s) of the principal(s):
NAME OF THE PRINCIPALS ADDRESS ADDRESS
ISMAT JAHAN EVA
Eastern housing, Mirpur,Dhaka-1216
ZAMILA AKTER MALIHA
Eastern Housing,Mirpur,Dhaka-1216
SHEIKH ISTIAQUE SHUDIPTO
Green road, Dhaka-1205
TAIBA UN ZAMAN
Kuril
AQUIB AJWAD BHUYAN
Bashundhara R/A
Nature of the business: It is a basically a skill based service organization. We do research and
collect data regarding the job market and trending business organizations. We analyze the data of
different financial market and make projections regarding the future job market. We share this
information with job seekers and people who are careful in choosing a career pathway. Besides,
we provide training offering different skills. Counseling from professionals will also be provided
to the students. People will be offered different skill set with consultancy for choosing the right
career path.
Statement of confidentially report:
This is a legally binding contract under the laws of the people’s republic of Bangladesh between
–
__________,
______________,
address_________________,
____________,
address________________,
________________
address______________________,
_____________,
address
________________
and
____________________,
address______________________.
All of the parties signing this contract agree to the following terms and conditions: This plan has
confidential information. This includes crucial forecasts, management techniques, unique strategy
and services, information about important stakeholders, proposed trademarks, organiza tio n
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structure, operation plans, key research findings, legal and statutory information about the
company. Each party signing the contract agrees that any deliberate or in deliberate disclosure of
the aforementioned information will result in legal proceedings, loss of jobs, fines etc. according
to the laws of the people’s republic of Bangladesh.
The Name of the principals Address:
Signature_____________________ (name 1)
Signature_____________________ (name 2)
Signature_____________________ (name 3)
Signature_____________________ (name 4)
Signature_____________________ (name 5)
2.Evidence of a strong team, with the relevant skills/experience
Youth unemployment issue is crucial for sustainable development of Bangladesh. The youth
unemployment has increased significantly over the years whereas the overall unemployme nt
remained stable. The annual rise in population is increasing the share of the working- age
population, as a mass of new employees joining the workforce of the country. The BBS reported
that, in 2016, the youth population in Bangladesh has been about 52 million which is more than
33 percent of the total population. Over the next 10 years, the working-age population structure
has been expected to grow more than 2.2 million annually. As the employment is falling with a
simultaneous slow response on job creation, it would be an issue for the Bangladeshi policy
makers. Similarly, global youth unemployment is in the more critical situation than the overall
unemployment. ILO reported that one-third of the young people, 1.8 billion, were not involved in
employment, education or training. It is expected that around one billion youth would enter the job
market and only 40 percent of them would be able to get jobs in the next decade. Many employers
do not seem to value skills acquired in existing TVET and emphasize transferrable and soft skills,
general basic education do not offer effectively. There appears to be a low-skills equilibrium in
which the economy and the private sector are trapped. The economy seems to have adjusted to a
state of low skill and low productivity of workers at the cost of low productivity of the economy,
and generally low earning and underemployment among workers, with or without skill training.
‘The university graduates struggle in the job market competing with the foreigners as most of the
education institutions in the country lag behind in providing skill-oriented education in compliance
with the market demands, in most cases, the institutions, beginning from the schools, do not pay
much attention to developing knowledge, competency, and technical knowhow, professional and
communicational skills of the pupils for which they lag behind in performances in professiona l
careers. This is one of the many reasons why foreigners are dominating the job markets in the
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private and multi- national sectors in Bangladesh,’ North South University Vice-chance llor
Professor Atique Islam said on an interview of New Age on October 19,2019.
A World Bank study has found as high as 46 percent National University students remain
unemployed for at least three years on completio n of their graduation.
“This share is very high in any standard. Unemployment thus is a grave issue for graduates from
NU-affiliated colleges and requires special attention,” said the study report released on March
31,2019.
We have seen some people who are struggling in their job still after 4-years of graduation.
Universities provides only academic knowledge of any subjects but can’t provide practical
experiences. That’s why it become difficult for people to come up with real life situations. It’s
necessary to get necessary knowledge before get into any job, so that people can get fully ready.
The reason behind of this problems are:



Lack of ICT in College/University education
Lack of non-cognitive skills
Lack of English proficiency of students
We have gathered some knowledge’s regarding these problems. We can use that knowledge’s to
run this venture. Also we will seek helps from industry leaders to get to know more problems they
see in new joiners so that we can come up with some ideas to cope up this situation.
3. Market gap that our service will address
Brac’s senior director for communication mentioned in a presentation that every year more than 2
million people are entering into job market which will grow up to 76 million in the year 2025
among them 40% of the entering workforce are going to be unskilled. (Prothom Alo English Desk,
2018)
According to the ministry of Finance most of the educational institutions in our country only focus
on the basic education. So, employers find it difficult to find employees with required job skills.
Institutions neither emphasis on practical works nor any skills related courses. (Bhuyan & Sen,
2017)
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Also there are various training centers where they only focus on teaching the students the basic
elements of English speaking, MS office etc. but they do not provide them with proper guideline
about corporate culture. One very obvious problem of these training center is they only train them
to be skillful but they do not direct the students to a distinct job position which matches with the
student’s skills. In the current situation most of the firms are looking for employees who are good
with their skills rather than their academic result. It can also work as an advantage to have the
skills that are required prior the job interview, because if the company takes candidates who are
not trained, they would require training which is costly and time consuming. For this reason,
students face lots of problems not only to get a job but also cope up in their corporate life.
According to survey, we found out most of the SSC, HSC graduate and university graduate face
problems to enter a job market because the type of skills they needed to enter a job market which
they never learn from their institutes. As a result, some of them said they feel frustrated and cannot
decide the suitable path.
There are organizations like Nebulas, New horizon, Wings learning center which provides
trainings like





English language course
basic computer training
Microsoft office
Digital marketing
Freelancing and out sourcing
But the way these organizations are different from us is that we will teach them:
a) Day to day business interaction like:
 How to conduct business communication (writing and replying business letter,
mails in a professional manner for both positive and negative interactions also
writing attractive CV, cover letter)
 How to make business paper and present it in an interesting way.
b) Along with these we will teach them how to operate MS office, speaking English,
c) Also we will work as a third party candidate provider: we can contact with differe nt
companies so that they can let us know whenever they need candidates with certain
qualities.
d) For the students we will work as a mentor to help them find the best opportunity available.
In this way we can serve as a bridge between skillful candidates and organizations seeking
candidates and this could be our little contribution in reducing unemployment.
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4. Business Environment Analysis/ Evidence of market opportunity
research
by
PESTEL Analysis
PESTEL analysis is consisting with the Political, Economic, Legal, Social, Technological,
Environmental factors. Each and every factor can affect our organization’s operations.
Political Factors: Political environment of Bangladesh is stable for a longer period of time. It is
claimed by international media that Bangladesh is a one state country. It means there is no
opposition political party currently. So, political environment will be stable for longer.
Economic Factors: The economic condition of our country is very good at the moment. The Asian
Development Bank says Bangladesh has the fastest-growing economy in the Asia-Pacific region.
Purchasing power of customers increased. As living standard is developing, people tend to seek
perfect career opportunity in a very competitive market. Our customer like students, organizatio ns
will be willing to get services for us.
Social Factors: The social trend is always inconsistent. Easy access to internet made our
modernization and westernization faster than ever. Organizations are trying to cope up with the
changing economy and society. So, companies are demanding both quality and quantity of
employees. Now students most likely choose technical subjects to serve easily for a corporation
and to get a better job. Educational institutions have become more concerned about updated
education system. Most universities follow the latest method of teaching. parents are concerned to
prepare their children for the fast-changing market. Expansion of private universities all over
Bangladesh is the clear indication.
Technological factor: Radical development of internet has a huge impact on Bangladesh.
Industries and lifestyle is going through a drastic change for last 12 years. Lowering tax on tech
products and government incentives for technology forced every industry to change so as
educational institutes. Technological advancement can bring both positive and negative effects to
us organization. So, we should be more concern for adopting new technology because in future
competitor may rise in the industry.
Environmental factors: We should stay concern about the environmental factors is very low.
Though disaster can hamper our business. Bangladesh has not seen earthquake for over a century.
Sometimes cyclone becomes disastrous in the southern part of this country.
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Legal factors: As education is privatizing more and more every day. Any organization who works
for the betterment of student has no legal barrier. If an organization operates legally and deals
ethically with students, it will be appreciated by the law.
What are the major economic, technological, legal, and political trends on a national and an
international level?
Economic trends: According to “Bangladesh Bank” Bangladesh is a developing country.
Bangladesh became second in South Asia in GDP growth in 2019. The literacy rate is also rising
along with economic development. Both public and private educational institutes are increasing
investment. With current development of various industry, we have more employme nt
opportunities than ever. Our institute can cooperate with students to have a better career in this
competitive era.
Technological trend: We live in an era where technology is fastest changing phenomenon. It is
also transforming the education system. From generalized education system, to personalized
education system. Reliance on book is on the decline so as old methods. We will offer latest
methods and latest trainings for students to cope up with next fast pace economy. Student needs
digital trading if they want to make a living in this digital world. It is assumed that development
of artificial intelligence will kill millions of jobs and will create millions of different jobs. Our aim
is to support the new students and provide them guidance and skill trainings.
Legal trend: Globalization is the first thing to be discussed in this topic. Revolution of electronic
telecommunication and limited free market is fueling up globalization for more than a decade.
Globalization has radically transformed the world in every possible way. Globalization not only
share economic resource but also share consciousness. According to UNESCO, Total 34155
Bangladeshis enrolled at universities in Malaysia, 5,441 in the United States, 4,652 in Australia,
3,599 in the United Kingdom, 2028 in Canada, 2008 in Germany, 1099 in India, 870 in Saudi
Arabia, 810 in Japan and 637 in the United Arab Emirates in 2017. Career solution to huge number
of students will be a good revenue making opportunity for our company.
Political trend: After World war 2, no major conflict happened on Earth except tensions in middle
east. Political condition in Bangladesh is also stable as it is quoted as an “one party state” by
international media Aljazeera. Bangladesh is very suitable for career development. Recently
foreign students are coming here for better education. Somalian and Chinese students are the
majority.
What are total industry sales over the past five years?
As it is a dynamic market, determining industry sale is quite impossible.
What is anticipated growth in this industry?
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Textile industry is the biggest industry of Bangladesh. Shipbuilding and it sectors are booming in
recent years. Bangladesh is mainly a tropical area. This country is suitable for agriculture. About
60% of the population work in agriculture and about 30% of the GDP also comes from agriculture
Huge number of population can easily fit themselves in various industries among various roles.
Porter's five forces
Porter’s five forces can define sustainability and profitability in an industry.
Industry Rivalry“Compass” is new in the market. This tells about market monopoly for this organization. In the
near future rivals may appear if we can successfully achieve our company’s goal.
Threat of new Entry- At the moment we are only organization that's offering service as a
consultancy firm for organizations, students, parents and educational institution. In future new
entry may appear but we will hold the power of first mover in the market.
Power of suppliersThe power of our supplier will be low as we are the sole organization that will be working with
our supplier.
Power of CustomersThe power of customer is also less. As this is the only firm that will be providing our unique
services. This situation is good but will work hard to meet their satisfaction level with our product
for long term customer relationship.
Threat of Substitution- At the moment there is no substitute. So there is no threat of substitutes.
But in the near future, it can change.
How many new firms have entered this industry in the past three years?
Especially universities and educational institutions serve opportunity seeking people. But there is
no dedicated agency to do the job. So, we can say there is no new firms entered in past three years.
What new products have been recently introduced in this industry?
“Academic Explorer” is a service based business.
Who are the nearest competitors?
Career development programs offered by several universities like BRACU, North South
University and Daffodil International University are the nearest competitors.
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How will your business operation be better than this?
By recruiting more people and space we can improve our business model. people who are good
academics and have experience will make a good mentor. People from different area of Dhaka can
also help us. They can be creating different branches is different are. This would help us expand
and grow.
Are the sales of each of your major competitors growing, declining, or steady?
Sales of our major competitors are increasing with the rising number of students.
What are the strengths and weaknesses of each of your competitors?
Main weakness of our competitors is their operation is their own institution centric. We will
operate with almost every institution. On the other hand, the main strength of our competitors is
their good investment and their highly qualified work force. If we think about North South
University, their work force is stronger and eligible in every way than ours.
What is the profile of your customers?
A recent study shows that number of students in higher secondary level increased 21%. Another
study shows that unemployment Rate in Bangladesh averaged 3.86 percent from 1991 until 2018.
Currently the rate is 4.30 percent. Along with undergraduates and graduates, unemployed people
are also our clients. Anyone in this country can get a good career with proper determination.
How does your customer profile differ from that 'of your competition?
We target college students who only ask assistance from private tutors and coaching centers.
Sometimes they are misguided because our education system does not support individualism. We
will offer distinct but qualitative training and consultant.
Is there any evidence from your potential customer that they will accept your product?
Not yet. Our business model need supervision before execution. But we have conduct a survey
which gave us a positive hypothetical assumption.
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SWOT
SWOT analysis can be defined as the model that helps an organization to understand the
internal factors play which plays an important role in business, and those factors which can be
controlled. SWOT analysis is consisting with internal Strengths, Opportunities, Weakness, and
Threats.
Strengths



New category in education business.
professional network.
Specified knowledge, organizational skills, and capabilities.
Strong professional consultant and specialist of marketing and psychology.
Weaknesses
Limited access to the capital investment due to new type of business.
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

Long-term Integrated marketing campaign.
Building a relationship with various institutes and students.
Opportunities




High demand in the market.
Our strong professional network will bring a large number of customers.
Opportunity to serve with educational institutions and doing business with reputed strong business.
Organizations which are looking for employees.
Large number of parents and students looking for a consultant for their future steps.
Threats
Threat of new entry.
5. Business Model Canvas
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Key Partners
Key Activities
-Educational
institutions
-Market research
Value Proposition Customer
Relationships
-Skill
development
-Short term
Customer
Segments
-University
students
-College students
-Finding out gaps
-Website
designer and
maintainers
-Consulting and
Advising
-Introducing
students to
corporate culture
-Mentor and
teachers
-Developing skills
Key Resources
-Co-operative
mentors
-Capital
-Better
-Online contact
environment with
updated
-Face to face
equipment
-YouTube ads
-Human resources
-Customer
database
Channels
Cost Structure
-Contact through
telephone
Revenue Streams
-Salary of employees
-Charges for services
-Website designing and maintenance cost
-Payment from online subscription
-Rent
-Revenues from ads
-Cost of office equipment
-Utility cost
Pricing model:
Compass follows the fixed pricing model. This model charges a fixed price to the client for a
specific service. (Gina, 2012) Compass is going to charge a fixed amount of money for differe nt
courses. The amount of money depends on the difficulty of the course and the amount of time the
mentors have to give to each students.
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Social goal:
Studies have found only 35 students out of 100 can really finish their higher studies. And they are
also not very efficient in on the job training as the graduates are. (World Bank, 2017) So most of
the early drop outs becomes frustrated when they cannot find a job, as a result they might choose
to do unethical or lower level jobs or worst they might get involved in substance abuse and
gangsterism. Skills development programs not only help to reduce poverty, it also can reduce
crime. (HR Plus, 2016) Thus ‘Compass’ can help to achieve this social goal.
Financial Sustainability:
Eco friendly:
Eco friendly simply means something that doesn’t harm the earth. Also referred to as
environmentally friendly, nature friendly. Products or services that doesn’t pollute the air, water
or land. (Derek, 2016)
Around 17 billion cubic feet of trees are cut of every year and a lion share of 60% is for producing
paper. (Hewlet, 2018) Compass is not the type of business that would cause pollution or harm to
the nature. As far as the advertising goes, our promotions are going to be online based so there is
going no usage of leaflets and banners.
Ethical:
In a business ethical behavior means some principal and fair behaviors that applies for both
coworkers and customers. A business being ethical always leads to a good path as it attracts the
workers and customers more than other organizations. (Brian, 2019) Compass is going to be fully
ethical towards its mentors and students also other workers. We are never going to differentiate or
be bias toward students based on their age, race, religion, gender. Every mentors and workers are
going to be paid a fair amount of money for the amount of service or time they have invested,
within the agreed time. Being ethical pays off in the long run.
6. Description of venture
Mission: Guiding people for better career opportunity.
Vision: Help people grow both educationally and financially
Reason for doing this business: As entrepreneurs, we always find out the gaps in the market and
try to fulfill it. In our country, we have seen students are getting only education from the
educational institutions. But education is not the only thing that helps to get a job. There are lots
of requirements that a candidate has to fulfill before enter a job market. Educational institutio ns
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are not helping them to introduce corporate culture and develop their corporate skills which are
very necessary for a candidate to cope up with a corporate environment. As a result, sometimes
students get frustrated and cannot decide the right direction. So, we feel that there is a huge
opportunity for making profit by helping them to develop their skills and counseling them about
the carrier opportunity. Thus, we can work for the betterment of our society, and at the same time
make good profit.
Why we think we will be successful: First of all, there are lots of institutions, which are not
introducing the basic corporate work to the students such as professionalism, MS office work,
problem solving skills, communication skills and so on. We are students of North South Univers ity
practicing these kinds of activities in every semester. So, we think we can give them proper
guideline about the corporate culture. Secondly, there are some organizations who also teach this
kind of staff but they are not guiding them; they are randomly giving the training. But we planned
our program with three different steps that makes our idea superior than the existing organizatio ns.
At first, we will start with a counseling session where we will find out a candidate’s interest; which
sector’s job he/she prefer to do such as banking sector, telecommunication sector, teaching sector,
IT firm and so on. According to his/her interest, we will provide them require skills. As a result,
he/she need not to be learnt multiple skills and will be more focused and determined to their work.
Then, after complete the program we will help them to apply various suitable sectors. Fourth, we
are the only one will give the opportunity to develop their skills through online platform.
What development work has been completed to date: we have created our business model and
roughly estimated the financial expense for the first year of the business. We also decided the
structure of our organization and how much every partners need to be invested in the business. We
have selected the place where our organization will be located, how many types of services we
will provide, and which marketing strategy we will follow to promote our business.
Product and service: we do not have any tangible product as we are service based organizatio n.
Our services include:
● Introducing them to the corporate culture and developing their skills practicing through the
corporate related work.
● Counseling them to focus on their interest and show the right direction to achieve that.
Trademark: We will trademark our company’s name and logo. We cannot patent our business
model; operations strategy or marketing strategy as such is not allowed in Bangladesh.
Size of the business: The size of our business is medium, but if we get a good response we will
grow our business rapidly.
Location: The organization will be located in K.B tower (level-6) Building number 38, Farmgate,
Dhaka.
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Building: The building where we want to establish our business is pretty old. So, we need some
renovation. We estimated around 50000 taka for the renovation and decoration purpose. At the
initial stage, the floor we leased from the owner for two years with 1 lakh taka paid in advance.
Why this building and location is right: We think that this location is right because our targeted
customers are mainly students or just finished the graduation. Framgate area is mostly known for
huge number of well-known schools, colleges and coaching center. Besides, this place is also full
of many business organizations, banks, insurance company where many people come here looking
for jobs. So, here it is easy to seek attention from our targeted customer.
Office equipment: Printers, scanners, computers, phones, close circuit TV cameras, stationery,
servers, microphones, speakers, lighting systems, video cameras, routers, WIFI’s, tables, chairs,
air conditioners, sofas, alarm bells, fire extinguishers. We hope to purchase all of our office
equipment.
Experience needed to successfully implement the business plan: We do not need any special
experience as we are serving the basic corporate skills that we already have. We just need to hire
one or two employee to look after our office.
7. Service delivery plan
Suppliers of the merchandise
As compass is only providing service we will not need too much equipment, but we will need many
computers and updated software. These computers and other electronics will be collected from one of our
known suppliers, Dolphin Computers limited, situated in Agargoan. They provide all sorts of latest models
and updated computers and software.
As well as the information about the job market and students will also be counted as inventory for the kind
of business we are running. These kind of inventories will be collected from direct market research and also
from internet.
Inventory control system
Compass is a kind of business where we improve skills of students by directing, and mentoring them, in
this kind of business we need little to no inventory. We will be having enough computers to serve the
students that comes to us.
Flow of services to customers
1. Customers can contact us through direct call, mail or via Facebook.
2. Per schedule they can come to the office or anytime we ae available.
3. Students either have to fill up a written form in the office or they can do an online registration, also
online subscription is possible.
4. Students would be then further notified via cell or online.
5. The students will pay the course fees beforehand.
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Technology utilization requirements
The main technology we are using is the computers and the software. High quality computers are going to
be used to train the students and updated software. For communicating, we will use emails, messenger, fax
and telephone. For advertising, we may use YouTube and other apps were it is easier to grab customer’s
attention.
8.Operational Plan
a. Description of company's operation
Examining and gathering information about the job market. Then we will interview clients online,
by phone or personally. After that we will gather data from the secondary sources. Then we will
Analyze all the data we have collected and we will arrive at a resolution. Next we will make
projections about the future by making diagrams, graphs, charts so forth. Now we can expect that
clients will fill a form to sign in either on the web or personally in the office. This is how we can
capitalize people's need and make clients pay either on the web or actually. After these process,
we will be giving face to face consultation to clients either through the web or in the workplace.
We will also help Giving clients research reports and CV. We will also Provide customers with
typed personality profiles and recommendations.
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b. Flow of orders for service
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c. Technology Utilization
Internet: We need internet to offer online service to our customers. This can be through video
calls, audio calls, emails and voice messaging. Also, we need to use the internet for research and
promotional activities.
Servers: We need computer servers to save customer information, and also research data that we
have collected
High tech camera: We want to use high quality cameras for our online services.
software: We need software like MySQL, SQL, SPSS and Microsoft office suite to conduct our
research and analysis activities. We are going to use Google docs, Yondo, and slack for
correspondence; Mail Chimp and Buzzsumo for marketing management; Due, Severa and
Ecquire for productivity management.
9.Market Plan (7 P’s)
7Ps: 7 p s is comprising with seven components that causes an association to focus available and
run their promoting
program successfully. That is mean by taking the assistance of associations individuals utilizing
the correct procedure to place right item in the opportune spot in ideal time at the correct cost. 7ps
is expanded rendition of 4 ps.
1.
2.
3.
4.
5.
6.
7.
Place
Price
Promotion
People
Process
Physical environment
Product
Product:
Our service is unique in this existing market. Our main offerings are consultancy, contracting and
enrolling administrations. We should guarantee the best administrations for the clients with the goal that
they can get the best fulfillment from our company.
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Price:
Pricing is significant for continuing in the market. The client frequently contrasts the cost of the item and
the item's exhibitions. We have set various costs for counseling understudies, guardians, and we will
charge expenses regarding the administration that we will serve to associations and individual clients.
Place:
Place is additionally critical to focus on the clients. Setting the association in right places brings additional
focal point of clients and benefit to the clients. From the outset, we are making a beeline for start our
business at Road No 7, Dhanmondi, Dhaka. This 650 square feet office space is situated near “Dhaka
Mohila College”.
Promotion:
Promoting the association is one of the most significant part for us. We are new in the market and our
business is very one of a kind. In this way, we will do a moderate number of limited time promotion.
Advertisement will tell our clients about our service and company. We are intending to do limited time
promotion in TV, social media and leaflet. We are focusing on doing personal relationship (PR) activities
with our clients.
People:
People are viewed as the people that are working with an association and the clients. We are thinking
about to inspire our employees and construct individual relationship with the clients. We will probably
assemble clients help work area in the association. We will take their feedback and criticism normally so
that we can expand our quality.
Process:
Process has enormous impacts in the execution of the administrations. We should have well-custom
made procedure for lessening expenses and increase the quality. Our procedure predominantly focuses
on getting clients at office or on the web, and then offering them customized consultancy. Our procedure
additionally cooperates heading out and talking with individuals to gather look into information.
Physical Evidence:
22
Physical proof can be characterized as the nature of an association. For our association the physical proof
will be the administrations was conveyed. We should offer best organization to our clients so that at
whatever point they will consider taking assistance from any consultancy firm, compass will ring a bell.
10. Organizational plan
Organizational Plan
A. From of ownership
The ownership of our firm ‘COMPASS’ will be a partnership. Partnership is a type of business model
where two or more partners form an entity to do business.
Partnership Firm: The name of our company is ‘COMPASS’.
Nature of Business: we will provide service. We will offer various courses that will help students to
develop their skills. We also help them to seek jobs and better carrier opportunity.
Business Address: K.B tower (level-6) Building number 38, farm gate, Dhaka
Duration of Partnership: The duration of our partnership firm is fixed up to twenty years base on the
consent of each partner.
Share of profit taken by each Partner: we will share all of our profit by 1:5.
Amount of capital contribution of each partner: All of the partner will invest same amount of capital.
(100000 BDT)
Terms of Retirement: Any partner can retire by providing prior notice with the consent of all partners.
Decision-making and resolving dispute: All the decision should be taken by the consent of every partner.
B. Identification of partners or principal shareholders
Name, Present Address, Permanent Address of the Partner:
Name
Present Address
Permanent Address
23
Ismat Jahan Eva
Eastern
Mirpur,Dhaka-1216
housing, Same
Zamila Akter Maliha
Eastern
Mirpur,Dhaka-1216
housing, Same
Taiba Un Zaman
Kuril,Dhaka-1229
Same
Aquib Ajwad Bhuiyan
Sheikh Istiaque Shudipto
Bashundhra R/A,Dhaka-1229
Green road, Dhaka-1205
Same
Same
C. Authority of Principals
All the partners of ‘COMPASS’ have the same authority except Zamila Akter Maliha will have the
authority to sign financial documents as she will be dealing with the finance department.
D. Management Team
The success behind every company is their management team. How much successful a company will be,
it depends on their management team because management team make plans and strategies to achieve
organizations goals. Management teams are also accountable for every single decision. We ‘Compass’
also believe this kind of thing. We five members will work for managing our business. Initially we won’t
hire anyone to look after our business. We will make our own plans and strategy for achieving the goals.
But if we expand our business we will hire expert for manage our business.
24
E. Members of the management team, roles and backgrounds
Name
Background
Role
Ismat Jahan Eva
Studies Bachelor of Business
Administration in Economics at
North South University
Chief Operations Officer
Studies Bachelor of Business
Administration in Economics,
Accounting & Marketing at
North South University
Chief Finance Officer
Zamila Akter Maliha
Taiba Un Zaman
Aquib Ajwad Bhuiyan
Sheikh Istiaque Shudipto
Studies Bachelor of Business
Administration
in
Human
Resource Management North
South University
Studies Bachelor of Business
Administration in Marketing at
North South University
Studies Bachelor of Business
Administration in Marketing at
North South University
Oversee and direct
operational activities
business.
all
of
Oversee and direct all
financial & accounting
activities of business.
Chief Human Resource
Manager
Oversee and direct all
human
resource
&
administrative duties of
business.
Chief Technology Officer
Oversee and direct all
technology
related
activities of business.
Chief Marketing Officer
Oversee and direct all
marketing related activitie s
of business.
25
11. Risk assessment
Weakness
As we are new to the market, we will have only one branch, which will grab a certain areas
customers. People will not come to take our service from another site of the city. As a result, we
would not be able to reach the entire customer in the market. Another weakness might be our
competitors. As some of the company is already providing similar kind of service, we will face
challenge to survive the market. However, obviously we have some especial survives that our
competitors do not provide so we do not think it would be that much serious for our business.
New technology
Nowadays, people are choosing technology over manual labor. Because of modern technology,
people can easily access YouTube, Google and many applications, which are also providing many
services. Therefore, we assume if people get the chance to learn things at home they would
probably less like to take physical services.
12. Financial plan
ASSUMPTIONS (Based on Cash Flow): Cash Receipts:
Payment from online subscription: As we planned to take online classes, we assumed that we
will get quite good payment from the online students. Here we assumed that we would charge 399
BDT per month.
Charges from students: As we are going to provide several services, we made a package based
program. If a student chooses a package, he/she has to pay 8000 BDT for each package or anyone
can choose separate course then it will depend on this:
Course Name
BDT
English course
Painting
Microsoft office work
Graphics design
5000
8000
5000
8000
Business communication
5000
26
Advertising revenue: This revenue will be generated from our website for advertising other
company or product. At the very first month, we are not expecting any profit from this as our
website is also new. However, in the future we will earn from this site since our expectation is
getting popular day by day.
Owner’s contributions: At the very beginning, every owner will invest 100000 BDT and total
investment will be 500000 BDT. As our business is small, this amount of investment will be
enough for us. Later, when we will be started making profit, we will keep some portion of the
profit for further investment to expand our business.
CASH PAID OUT:
Advertising: As we are new to the market, we want to introduce our company through advertising.
Therefore, at the initial point, we are expecting the advertising cost will be high considering the
ad making charges. We will use both of the advertising system digital and traditional (digita lsocial medial platform, traditional- banner, leaflet, signboard etc.). In total, this will be cost around
10000 to 12000 BDT.
Wages and salaries: We are planning to hire an employee who will be stay in the office for 24/7
for giving the necessary information to the clients. In addition, we will pay him/her around 10000
BDT per month.
Office expense: This expense is very uncertain, but we have taken the amount roughly around
10,000 per year.
Office equipment: As we are providing educational services, we just need some benches,
computers and white board, few chairs and tables. For this, we are estimating 150000 BDT.
Rent or lease: Rent of our office space based on the location will remain around 40,000 per month.
Website design and maintenance: From developing the website to the maintenance, a fixed cost
will be incurred each year and the estimated amount is 60,000 BDT.
Taxes and licenses: As ours, business is partnership, business tax rate is going to be 20% and we
need to pay 7,000 BDT yearly for our trade license.
Utilities: Utilities’ bill will be fluctuated around 72,000 to 75,000 yearly, based on today’s data.
27
Cash flow projection
28
Pro forma income statement
Year 1
Year 2
Year3
Year 4
Year 5
Sales
Sales from
Services
Others
744000
800000
750000
900000
9400000
5988
49940
87904
119880
122880
749988
Total sales
Less COGS
0
849940
0
749988
Gross profit
837904
1019880
9522880
0
0
0
849940
Operating
expense
Advertising
payment
wages and
salaries
Website
maintenance
Office
Equipment
Office Rent
144000
144000
100000
100000
80000
120000
180000
240000
240000
300000
60000
60000
80000
80000
80000
150000
60000
30000
30000
30000
120000
120000
120000
120000
120000
Tax and
license
Utilities
7000
7000
7000
7000
7000
72000
72000
80000
80000
80000
Total
operating
expense
673000
643000
585000
585000
697000
Net Income
76988
206940
252904
252904
8825880
29
Pro forma balance sheet
Asset
Current
Asset
Cash
other
Total current
Asset
Long term
Asset
Equipment
Less
accumulated
depreciation
Net property
Total long
term Assets
Total Asset
Liabilities
and
shareholders’
equity
Short term
debt
Salaries
payable
Income taxes
payable
Accrued
liabilities
Total current
liabilities
Long term
liabilities
Year 1
Year 2
Year 3
Year 4
Year 5
500000
0
500000
656988
50000
706988
993928
50000
1043928
1304832
80000
1384832
1827712
100000
1927712
150000
10000
60000
5000
80000
10000
80000
5000
80000
5000
140000
140000
55000
55000
75000
75000
75000
75000
75000
75000
640000
761988
1118928
1459832
2002712
0
0
0
0
0
120000
180000
240000
240000
300000
0
40000
60000
80000
100000
0
0
0
0
0
120000
220000
300000
320000
400000
30
Shareholders’
Equity
Common
stock
Available
investment
Retain
earnings
Total
shareholders’
Equity
Total
Liabilities
and
Shareholders’
Equity
0
0
0
0
0
200000
250000
300000
500000
800000
320000
291988
518928
639832
802712
520000
541988
818928
1139832
1602712
640000
761988
1118928
1459832
2002712
Breakeven Analysis
Year 1
Breakeven 382000/3149912000=
Point=
FC/SP-VC
19.59
So, if 20
people take
our service, we
will achieve
our breakeven.
Year 2
Year 3
Year 4
Year 5
437000/3149912000=
530000/3149912000=
525000/31499833.33=
585000/314996666.67=
22.41
So, if 23
people take
our service, we
will achieve
our breakeven.
27.18
So, if 28
people take
our service, we
will achieve
our breakeven.
17.120
So, if 18
people take
our service, we
will achieve
our breakeven.
23.55
So, if 24
people take
our service, we
will achieve
our breakeven.
31
Growth Analysis
There are five stages in these planning and development process. Here we are trying to give an
estimated amount of money in each stage we have to invest and how much we are hoping to get
back.
In idea stage we do not need any specific amount of money as we are generating new idea which
can help to fill the market gap. So, here we might need 50 to 100 taka for internet to find the idea
is worth it or not; is the kind of product or service is exiting in the market or not. If our idea is
accepted then we will move forward to concept stage where we will let know about our idea to the
customer to test their reaction. As we are going to give service, we can do it by conducting a survey
on our customer. Here, we are estimating to expense maximum 200 taka. Afterwards, in the
development stage as we cannot provide service a group of potential customer, we can compare
our service with other competitors such as risk analysis, intensity of preference analysis to
determine customer preference. Here, the estimated cost would be maximum 1000 taka. Then, we
will make some marketing plan for test marketing stage such as promoting our service to the
students by providing leaflet, giving discount or offering some trail classes, which will indicate
the acceptance level of customers. Here, it could be around 2000 taka cost. We will not get any
kind of money from these stages, as we did not commercialize our service yet into the market.
In the introduction stage, we are estimating 300000 BDT to expense because here we have to rent
a commercial space and buy equipment is to provide the service. In addition, initially we can get
around 200000 BDT. Afterwards, in growth stage we might expense 600000 BDT, as we will be
in higher stage, which will lead us to expand our business. As a result, we will get opportunity to
32
provide more service and hope to return 800000 BDT. In maturity stage, our service will be low
and as a result, we can collaborate with other company or take some investors, which will cost
around 1000000 BDT, and from this, we can make profit 1500000 BDT. In addition, in the last
stage, our service will be low and we expect to earn less estimating to invest 700000 BDT and
earn 300000 BDT.
A. Sources and Applications of Fund:
As we are going to start a partnership business at the initial stage we will invest all of our own
money in the business. It will help us to avoid taking loans and keep our interest expense zero.
After one or two years we will invest more from our own savings and a huge amount of retaining
earnings will be reinvested to expand our business.
After five years, if we get opportunity to open branches throughout the country, we can take more
partners to invest our money.
B. Investment proposal
Mr. ‘X’
Owner, Z Company
438 Apple Street
Dhaka-1000
1st January, 2020
Dear Mr. ‘X’
We hope you are doing well. We are very thankful to you for receiving our letter in your busy
schedule.
As you already know about our business (what type of service we are proving, how much we
invested initially and now in which position we are at etc.), let us come straight to the point.
We started our business few years ago with our own investment; that time we did not need investor
as our business was comparatively small. After one year we gained 800000 BDT investing on
500000 and day by day our services is getting very popular. Now we are in the position where we
realize that we can expand our business throughout the country, it will help to earn twice the
amount of profit.
To avoid risk we have done a great research on everything such as location, profit making
opportunity and customer behavior and so on. And we are hoping to get customer’s attraction
easily outside Dhaka as we already made a good impression in the market.
33
We know that investors in Bangladesh appreciate in helping small business to grow and with your
help opening branch in new location would help turn our business to expand more that we had
always hoped for. Your investment would not only benefit our company, but yourselves as
investors (as the profit will keep on rising as the business grows) our partners and the surrounding
neighborhood.
Thank you for your consideration, we will be happy to answer any question you may have.
Sincerely,
‘Y’
Owner, ‘T’ company
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