Business Plan for a new product

7/30/2019 Business Plan for a new product

1/57

Business Plan on

Green CoconutJuice

1 | P a g e


2/57

Business Plan on Green Coconut Juice

Prepared for

Mr. Fakhrul Islam Hemel

Lecturer

Prepared by

Group SPARKLE

Batch 43, Section F,

BBA Program

2 | P a g e


3/57

Department of Business Administration

STAMFORD UNIVERSITY BANGLADESH

Date: 24.07.2013

Group Members

IDno Name Sex

BBA04313

625

Shah Alam Hera Male

BBA04313

674

Zarin Rafa Female

BBA04313

650

Raisul Islam Male

BBA04313

624

Methun Kumar

Sharkar

Male

BBA04313 Jamshed Ahmed Male

3 | P a g e


4/57

663BBA04313

661

Rubayeat

Ferdous

Male

Acknowledgement

First of all, we would like to thanks to Almighty Allah for his kindness and blessings

that we have finished our project report in a short period of time. This report has been

prepared as a part of the requirement of our Ice Breaking Programmed under the

BBA Course being implemented by individual students of Stamford University

Bangladesh, Dhaka. Though we are quite novice in preparing this kind of report, in

spite of this we individually have tried to build our business sense by overcoming our

shines. The group objective of the report is to know about the individual business planas an entrepreneur.

We are enthusiastic to you for giving us the opportunity to undergo such an experience.

Here is the Business Plan of Green Coconut Juice, which plans to produce fresh

coconut juice in container with various design and shape. While preparing this

Business Plan, we have tried to pursue the instructions that you had assigned in the

class. We have tried our level best to gather the possible information regarding the

focus. This assignment is based on the class lecture and market survey of jute product

4 | P a g e


5/57

sector in Dhaka, Bangladesh. For preparing this assignment; we used the ideas from

customer demand and opportunity of making profit by producing different kinds of

jute products with various shape and design.

This is an enormous opportunity for our future accomplishment and achievements of

my goals by preparing an assignment on this attractive focus. We have tried to follow

the guidelines of preparing a formal Business Plan, which will be beneficial for me in

future. We want to express my acknowledgement and appreciation to Mr.Fakhrul

Islam sir for his friendly cooperation. He shared his valuable time and information

with us and also helps us to achieve our destination.

Table of

Contents

Chapters Contents Page NumberExecutive Summary

Chapter

1

Introduction 1ObjectiveMethodologyLimitation

Description of

BusinessIndustry BackgroundBusiness HistoryBusiness MissionBusiness Vision

Business scope

5 | P a g e


6/57

Chapter

2

Legal Form of

Business

Business plan

Organizational

Structure of

BusinessManagement teams

backgroundManagement team

key personal

Management

summary

Chapter

3

Chapter

4

Technical segmentLocation analysisProduct of BusinessService of BusinessProduction

FlowchartManufacturing Cost

DataMarketing StrategyMarket

SegmentationCurrent Scenario in

BusinessOur SWOT AnalysisCompetitor AnalysisTarget Market

Pricing StrategyConsumer BehaviorProduct Future out

LookOffice Equipment

and PersonalEmployscompunction and

Benefit Packages

Financial SegmentIncome Statement

6 | P a g e


7/57

Chapter

5

Capital RequirementOwners ContributionFund ResourceBuilding CostLand Side

developmentPerpetrating

ExpansionFinancial Plan and

Lone RequirementUtility Cost

Chapter

6

Contingency PlanConclusionBibliography

Executive Summary

The upcoming report is about the comprehensive topic upon the effect of the business plan of a

new business named Green Coconut Juice owned and managed by a group of seven

entrepreneurs known as SPARKEL. The name of our product is NOCONUT.

For this purpose, it was the first step to collect the necessary information from the market.

Most of data is collected from secondary sources but we also discussed about our plan with

some other entrepreneurs and shop managers.

In the next step, we have determined the macroeconomics variables of Bangladesh that affects

our factorys operation. An industrial analysis in this regard has also been conducted. Besides

the macroeconomic and industry analysis we also made micro and macro screening to identity

7 | P a g e


8/57

the best projects. Finally we concluded that the location of the factory, availability of raw

materials and procurement of machineries would be our prime sector of investment.

To implement our business we need a practical business plan including the Purchase plan,

organizational plan, managerial plan and other important things. But the most prominent plan

is marketing and financial plan of our project. In marketing plan we identified the SWOT

analysis, product demand, promotional activities, consumers behavior analysis etc. In the part

of financial plan our report reveals first three years pro-forma statement, BEP analysis, cash

budget, ratio analysis, policies regarding to the business. The business will be run as a joint

proprietorship business and 70% of the total equity amount will be given by 9 entrepreneurs

and the rest will be arranged from bank loan.

In the next step we build alternative plans and contingency plans which would help us to

confront situations in unexpected bad situations. At last we summarize the major findings of

the business plan and add a conclusion of our report.

Introduction

Green Coconut Juice Factory is a newly formed business for our country Bangladesh.

The idea behind the business is to provide healthy and nutritious Green Coconut Water

via different types of containers for exporting as well as to make it available in the local

market. Green coconut water always has a great demand in Bangladesh as well as in

foreign countries. In addition to produce Green Coconut juice, the business also plans

to familiarize the people to use our product as an alternative to different kinds of

8 | P a g e


9/57

beverage. As it is cool in nature, so people will prefers this juice especially in summer.

But usually peoples bye coconut and drink that in an open air which is not so hygienic

and healthy also. Considering all these situations we will provide healthy and nutritious

coconut water in a packing container which name is NOCONUT and it will be

prepared by GREEN COCONUT JUICE. The product of our can be easily carried

from one place to another and people can drink whenever they become thirsty.

So if we can produce such kind of nutritious juice for a developing country like

Bangladesh, the economy sector will have a great benefit through this product. The

management, marketing, financial and technical part are given in details in the

following pages. We also furnish herewith a clear view of our business.

Objectives

Our business object is about to preserve the people a fresh and hygienic coconut water.

By packing coconut water it into different containers. The business over look object is

given below

To produce and provide people a delicious and nutritious juice.

To earn a huge profit by investing a few money.

To acquaint ourselves with entrepreneurship development.

To improve Bangladeshs export sector.

To ensure heats conscious among people in Bangladesh.

9 | P a g e


10/57

Methodology

We use theoretical approach to prepare this report and for this purpose we have been

collected both primary and secondary data from the following sources:

Primary source

10 | P a g e


11/57

We took interviews of some entrepreneurs.

Visiting some well-known juice company.

Face to face conversation with existing company likes:

Coco cola, Mango, Mojo, Fruitlike Etc.

Secondary source

We have collected some information through internet and also searched the local and

foreign websites.

We took help from some previous reports and got some idea about the aspect of

reports.

We also went through English and Bengali newspapers.

Published reports

Books

Journals

Website, Etc

Limitations

In preparing our first business report we had faced different kinds of limitations. Some

of these are as follows:-

As we know Green Coconut Juice is a new business in Bangladesh. It was quite

different to collect recent data about local producers. Moreover the time was not

enough. Some issues were new for us and of Corse the load shedding problem and some

other is as following Belo

11 | P a g e


12/57

In our country juice farming are developing but it not too much develop as we

need. So it will be very tuff to establish a juice farm which will be able to fulfill

the demand of Coconut juice.

We have a very little knowledge about Coconut juice. So its really hard to

prepare a business plan with such a little knowledge.

We got very little time to prepare a business plan. So its difficult to make a

business plan in a little time.

Most juice productive farms are not interested to share their confidential

information.

Description of Business

We are living in the world of business. Business is the Root of the economy activity of

the economy activity and everything is encompassing it. Thinking about a business is

like leading an adventure. However, we are going to take an adventure with Coconut

juice factory. Every year we have to import huge amount of coconut juice in which

more than 45 %.

12 | P a g e


13/57

The Business which we want to start is a factory of green coconut juice. Green coconut

ware had its humble beginnings in our country. It is abundantly found only in the

coastal areas of our country. Through our business we want to make Green coconut

water available all over the country. Thus we have invented a new product whichcontains fresh and nutritious coconut drink which name is NOCONUT.

To start this business we need a huge green coconut tree which we already have in our

country. So coconut supplier is able vale hear. Considering all that we are hardly want

to start this business in our country.

Industry Background

The green coconut juice factory in an newly found business by us in our country thus

why we wont have any king of industry background.

Business History

Green coconut ware had its humble beginnings in our country. It is abundantly found

only in the coastal areas of our country. Through our business we want to make Green

coconut water available all over the country. Thus we have invented a new product

which contains fresh and nutritious coconut drink which name is NOCONUT.

In foreign coconut Juice's operations have expanded dramatically over the past three

years. Currently, the company has a staff of ten in production, delivery, and sales.

Initially, the fruit drinks were sold at Richmond's weekend craft fair. They proved to

be so popular that the partnership pooled their resources and began coconut Juice.

13 | P a g e


14/57

Over the next three years, Coconut Juice's drinks, shakes, and smoothies have become

one of the city's most visible signs of a healthy life style.

The following table and chart will show us the rapid sales success of coconut Juice in

foreign country.

Business Mission

Noconut Juice's mission is as follows:

14 | P a g e


15/57

Quality: Our Noconut juices are the finest quality, most nutritious food

products are mixed with many pungent tests but they are not good for our

health and body. Thats why we will take only finest quality of coconut water

accept nothing less.

Innovative: We aspect that our products will always be in the forefront of the

health and nutrition wave. Innovative products, state of the art manufacturing,

quality assurance and industry expertise are the bases for our present and

future successes.

Integrity: Our customers can depend on the quality of our juice products rather

than any kind of beverage. Our commitment to the highest standard is thefoundation of our customer's trust in Noconut Juice. Delivering freshly made

juice to consumers depends on extensive cooperation and mutual reliance

between supplier and retailer. We stand behind our product, our service and

our word.

Business Vision15 | P a g e


16/57

The vision of Green Coconut Juice Factorys to become the number one exporter of

Green Coconut Water of Bangladesh. We also want to be the pioneer in the local

market. We also have a vision to set up a Green Coconut Water firm like the Green

Coconut Water firms in USA.

Business Scope

Noconut juice has very good possibility to do a good business in our country. As it is a

pure Green coconut water people will like to accept our product easily and also because

of its new outlook .If it does a good business in our country we will look forward to sell

our product in various countries.

Legal Form of Business

16 | P a g e


17/57

Green Coconut Juice Factory is formed under the partnership Act of 1932 and is consists of nine

partners. We have some company policy and also have some rules and regulation of the partnership

business which are as follow:-

1. Name of the Business Plan: Green Coconut Juice Factory.

2. Name of our product: NOCONUT

3. Address:

4. Work place of the project:

5. Capital: 70% provided by nine partners and other 30% provided through Bank loan.

6. Withdrawing money: Partners cannot withdraw more than 5% of the total money which

invested for the Business plan. This rule is applicable for every partner individually.

7. Interest over withdraw: Every partner has to give 10% interest yearly on withdrawing money.

8. Distribution of profit: Rational distribution method, according to every ones invested capital.

9. Name of bank:

10. Name of the bank account manager:

11. Accounting year: From January to December the total project will run individually accounting

year.

12. Publishing of Final account: On the 31 of December, or maximum 30 days before than 31st of

December every year. The final account will be published.

13. Solving problems: Any kind of problem related to the partnership business could be solved by

the deed of partners.

14. Changing of rules: In future if any at the rules may need to be changed then all partnership act

1932, will change the rule.

15. Dissolution of partners: If there is any mandatory reason for dissolution, then the business will

be dissolute by the partnership act 1932.

Business plan

17 | P a g e


18/57

Green coconut ware had its humble beginnings in our country. It is abundantly found

only in the coastal areas of our country. Through our business we want to make Green

coconut water available all over the country. Thus we have invented a new product

which contains fresh and nutritious coconut drink which name is NOCONUT.

The green coconut water has become very popular in foreign and its profit is

outstanding. Here are is our business plan in graft:

Figer1: Business plan

Organizational Structure

of Business

18 | P a g e


19/57

The company will consist of the nine partners as owners and board of directors. Out of the five,

one will be the managing director and the others will be in charge of the different departments.

This will change over a period of one year. The two designers will be working under and

reporting to the managing director. Any problem will be reported to the managing director

first and then to the partner holding the position of the managing director.

Figer2: Organizational Structure

There will be four major departments for five most important functions of our company. These

are as follows:

1. Finance & Accounting department

2. Human Resource department

3. Marketing department

4. Sales department

19 | P a g e


20/57

Management Teams

BackgroundName: Zarin Rafa

Age: 32

Address: 132,133 Ahammedbagh,Dhaka 1214,

Profession: Woman Entrepreneur

Nationality: Bangladesh

Education Qualification: BBA, MBA, Stamford University Bangladesh

Name: Shah Alam Hera

Age: 28

Address: sotht rahamatpur,jatrabari,Dhaka-1204

Profession: Entrepreneur



Name: Raisul Islam

Age: 28

Address: Sydabad, DhakaProfession: Entrepreneur



Name: Methun Kumar Sharkar

Age: 29

Address: Zinia, 29A/4, Raza Bazar, Farmgate-1215


20 | P a g e


21/57



Name: Jamshed AhmedAge: 29

Address: , Basabo, khilgong, Dhaka




Name: Rubat Ferdous

Age: 28

Address: 623, Baro Moghbazar, Melody Homes Apartment, Dhaka-1217




Management Team Key

Personnel

Our management team is contains 7 members of our board of director. They are working

different position is our organization through planning and decision making. Our managing

director manages the whole management sectors definition is given below.

Name Age Qualification ExperiencePosition in

management

Zarin Rafa 32 BBA, MBA, Four Year Company M.D

21 | P a g e


22/57

Stamford

university

Bangladesh

Shah Alam Hera 28 BBA, MBA,Stamford

university

Bangladesh

Three Year Finance&Account

Manager

Raisul Islam 28 BBA, MBA,

Stamford

university

Bangladesh

Two Year Marketing

Manager

Jamshed Ahmed 29 BBA, MBA,Stamford

university

Bangladesh

Two Year Human resourceManager

Rubayet Ferdous 28 BBA, MBA,

Stamford

university

Bangladesh

One Year Sales Manager

Methun Kumar

Sharkar

29 BBA, MBA,

Stamford

university

Bangladesh

One Year Frontline

Manager

Management Summary

Green coconut juice factory will be organized and managed in a creative and

innovative way to generate very high quality product for customer satisfaction, we need

to create a working climate conductive to a high degree of personal development and

economic satisfaction for employees.

22 | P a g e


23/57

Our management team consists of people that have mastered their technical skills and

have a desire to share that knowledge with new talent entering the industry. Career

experience expands over five years is the prerequisite for all employees. Portfolio of the

employees is also available for viewing.

Training session will be there to help the employees to improve their product

knowledge and skills on a regular basis. As the business moves into growing stage, the

company will start to offer an employee benefit package including health, residence

and vacation facilities for everyone.

Technical

Segment

We have to locate our technical sights for our business. Its a very core site for the

business.

Location

Analysis

For any kind of business location analysis is very important. Before choosing our

business location we have to analysis that areas demand, capability, scopes, raw

23 | P a g e


24/57

materials able vale Etc. Very wisely. So considering all that we think Khulna will be a

suitable place for us.

Address: Fultala, Khulna.

Product of

BusinessThe product that we are going to produce is Green Coconut Water. This is a very new

Business for the Bangladeshi market. Green Coconut Water is a potential of

Bangladesh and its commercial production is possible in temperate and sub-tropical

areas of the country. Green Coconut Water cultivation has been gaining popularity in

the northwestern districts since the last couple of years as the Product has tremendous

economic prospect for the coconut seller.

The product which is imported in Bangladesh with packaging those all are packed in

different containers. So we will sell our product in open market. But we are packing

our product in different containers, Such as:

24 | P a g e


25/57

120ml

220ml

So that the general public can buy our product as they need. As well as bottles also

protecting coconut water from being polluted with air .So people will become eager to

consume our product.

Service of

BusinessWe will provide different kind services to our clients. As we are going to export our

product, we will assist our foreign buyers to get easily our product. For the local

business buyers we will provide transport service for them. It will be our responsibility

to reach Green Coconut Water in their factories. For the consumer we always have

sample for tasting. They can test our product before buying it. In special occasions like

Eid, chrisms, we will give special as sale offer for our customers. We believe that abusiness can only be successful if its buyers are satisfied

25 | P a g e


26/57

Production Flowchart

The production program of our product is given below in flowchart:

Figer3: Production Flowchart.

26 | P a g e

Production

area

Transport

Whole

seller

market

Whole

seller

market

Customer

Market


27/57

Manufacturing Cost DataOur product needs some manufacture such as coconut water storing bucket, purified

and processing machine. The cost of our machinery is follow:

Particulars Amount(taka)

Office room 500000

Machine Room 1200000

Motor pump room 50000

Care taker room 50000

Garden 100000

Store room 400000

Extra room 200000

Total 2500000

Sources of Raw Materials

27 | P a g e

Particulars COST(TAKA)

Green coconut Water storingbuckets(5500*600)

3300000

Filter 300000

Purifying and processing machine 1000000

Total 4600000


28/57

We can easily get sources of raw materials easily in Khulna at

square pharmaceuticals.

It is cheaper than other sources.

We can get coconut also at a reasonable price in Khulna.

Labor Supply

Our production labor will distribute the product in our retail store.

We will operate our machineries by skillful workers.

Distributor will supply honey in rural and urban area.

28 | P a g e


29/57

Size of Business

Our business is basically a small business. A small business may be defined as a

business with a small number ofemployees. The legal definition of "small" often varies

by country and industry, but is generally under 100 employees. These businesses are

normally privately owned corporations, partnerships, or sole proprietorships.

Marketing Strategy

Market Segmentation

For selling our product we are dividing our target market into 3 groups. These are

The foreign Buyers; these is huge demand of Green Coconut

Water all over the world. Our main target buyer is the foreign countries like

Canada, UK, USA, and also middle-east. We will directly export the big portion of

our production in the countries.

29 | P a g e
http://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Employeehttp://en.wikipedia.org/wiki/Employeehttp://en.wikipedia.org/wiki/Employeehttp://en.wikipedia.org/wiki/Corporationshttp://en.wikipedia.org/wiki/Partnershiphttp://en.wikipedia.org/wiki/Sole_proprietorshiphttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Employeehttp://en.wikipedia.org/wiki/Employeehttp://en.wikipedia.org/wiki/Corporationshttp://en.wikipedia.org/wiki/Partnershiphttp://en.wikipedia.org/wiki/Sole_proprietorship


30/57

The Local Bulk buyers: there is also very high demand of Green

Coconut Water in the local manufactures and hotels. So we will also supplies Green

Coconut Water to 5 start or 3 start hotel, milk manufacturing companies, juice

companies and fast food shops. The local drink shop can buy Green Coconut Water

from us. By using them we can supply Green Coconut Water all over the

Bangladesh.

The local individual consumer: people of Bangladesh like

to drink Green Coconut Water. But right now they cannot afford to drink it

because it not safe to drink it in open air and also not cheap at all. So we will have

taken it seriously and try to convert into a containers. They can also buy it from

local fruit shop as we are going to sell them to local fruit shops. We have identified

six metro locations within the country where we can reach our target customers:

KHULNA

CHITTA GONG

SHEYLET

COMILLA

KUSHITA

RAJSHAHI

Some local area of Khulna:

30 | P a g e


31/57

Current Scenario in

Bangladesh

Though green coconut water is very much wanted is our country, but it is not easyto establish our business. There are several types of problem that we are felt to be

as a threat. So we need to analyses and solved it out very soon.

Figer4: Current Scenario.

SWOT Analysis31 | P a g e


32/57

Figer5: SWOT Analysis

Strengths

Using a more scientific approach for producing our product. Most of the juice

producing factory follows traditional method of production.

We intent to follow that system also in our green coconut juice factory.

If we can get 1litter coconut water into par coconut, we can contained them in 5

120ml bottle and we will offer very chafe ret which will be benefited for us to

perform in the market.

We will offer our product around tk. 10-12(per120ml) bottles. This will give us

the benefits of price leadership into the market.

Weaknesses

32 | P a g e


33/57

Our machinery includes higher initial cost and greater management skill.

Involves more risks.

Require more knowledge and hard work than the traditional methods.

Opportunities

Green Coconut Water farming will soon gain huge popularity everywhere in the

country.

According to experts Bangladesh has huge potential to export Green Coconut

Water in other countries.

They said that the soil, climate and topographic conditions of the country is

suitable for our product.

ThreatsThere is still no established market in Bangladesh.

The international Green Coconut Water market is very competitive. So, we have

to ensure low price and high quality to capture the market.

Green Coconut Water still is cultivated through the more traditional way; there

are no implementations of more scientific methods.

33 | P a g e


34/57

Competitor Analysis

Competitor analysis is a very major part for any kind of business. In this part we have

to analysis our Direct and Indirect competitor who will be a threaten sine for our

business is need to identify.

Direct competitor: All kinds of soft drinks will be our direct competitor. They are

such as.. Water, Coco cola, Mojo, Mango juice etc.

Indirect competitor: Our indirect competitor will be the foraging juice products

which have a huge demand in our country.

Target Market

34 | P a g e


35/57

In our country we have no coconut juice brand. So its a great opportunity for us to

capture the market. We want to be the market leader of this type of business. Our

customers will be the all classes of people so that we can sale our product widely.

We will sale your product in low price than any other foreign brand.

Pricing Strategy

Green Coconut Juice Factory will follow the price push strategy. We will create

awareness of our product and make sure that our buyer will be able to buy our product

at an affordable price. Because of that we have to set the price reasonably in the first

year we have huge amount of promotional. Our promotional costs will be incurred in

the in the following ways: cost of

Taste sampling

Relative promotional cost

35 | P a g e


36/57

From the second year the promotional cost will decrease. As a result Green

Coconut Juice Factory will decrease it price around tk. 350-450 tk. The pricing

strategy from the second year will mostly depend on the reaction of the competitors.

Sales Strategy

We have 3 different kinds of buyer. One is foreign buyer, another is local buyer and

last one is the final consumer. Our sales strategy will be varied from customer to

customer. though we are providing superior quality of Green Coconut Water , but we

are not charging high price. It is because we are new in the market; moreover the

foreign buyers do not have any idea about our country. So we want to create brand of

our product in the outer world. For the local market we will also follow the same

strategy. The wholesale buyer will get different kinds of discounts from us. We offer

special price for the final consumer because all of we know about Green Coconut

Water but very few have ever tasted it. So we want to make to possible that everyone

can taste the real taste of Green Coconut Water for once.

This is why Green Coconut Juice Factory will sell Green Coconut Water

directly to the buyers. This will give us an opportunity to create relationship with the

buyers. We will also take order through telephone. We will create database about the

buyers for future use.

36 | P a g e


37/57

Promotion Strategy

Our company will enjoy a premium in promotional cost. Because we are marketing

such a product that people need. This product is soft deinking product and also

picketing in a moderate way which will be a great attraction for the consumers

and also People can drink as an alternative beverage.

But this doesnt mean that we dont need advertising. As we are starting the business,

we need to make people know that our product Noconut is being prepared in our

country. There is a matter of patriotic motivation.

Advertising: As a new company, our prime target is to aware people about

our products and services. We will initially use the Shot Gun method and use

different communication tools to send our message to our target customers. Doing all

this media Is our prime source to publishing the product.

Sales Promotion: It our customers order us with 1st 9 month. We will

provide some discount to them. Different types of discount will be provided by us whichis given below.

37 | P a g e


38/57

1st month---------3rd month---------------------------------------------

8%

4th month---------6thmonth---------------------------------------------

5%

7th month---------9th month---------------------------------------------

3%

Promotion through Website: There will be a website of our

company informing people about our product and services. Website will be a great way

to communicate with the customers and it will in future bring online selling also.

38 | P a g e


39/57

Consumer Behavior

It entails the attitude and the perception of the consumers before and after sells. As a

shopkeeper we will have to take into account all the factors that influence their buying

behavior i.e. Premium quality at high price or premium quality at an affordable price,

unique and artistic arrangement of flower bouquet, posh and plush decoration, etc. To

attract new customers we will come up with some unique decoration of the shop with

bamboo and acrylic to make it look like a fusion of east and west. We will also make the

product categories as cost effective as possible for our consumers.

39 | P a g e


40/57

Figer6: Customer Behavior

40 | P a g e


41/57

Product Future OutlookGreen Coconut Water cultivation has been gaining popularity since the last couple of

years as the fruit has tremendous economic prospect for the grassroots farmers. With

great export potential, the attractive fruit could open a new horizon for the farmers to

earn more profits from less land area and their interest is gradually increasing day by

Office Equipment and

Personnel

Our Green coconut factory and office are located in two different places. Therefore our

office equipment and personnel are divided into two parts.

41 | P a g e


42/57

Manager: we will have a manager in the farm. He will keep all the

expenses that occurred in the farm and also inform all kinds information to the

Khulna office.

Worker: we will have 3 maintain ace worker in our farm. They will take

care the farm and also work in the Green Coconut Water factory.

Adviser: we will hire Mr. A K M Nabil Kodak as an adviser to help in theproduction of Green Coconut Water. He has 3 year knowledge of producing juice.

Contract Personnel: we hire workers in the time of cultivating

and harvesting Green Coconut Water. It depends on the production how many

daily labors will be required. We are estimating that this number could vary 10 to

20 people.

They will be utilized initially for the moving and setting up of the vegetable farm,

greenhouses, and the building of the manure composting facility.

Office Equipment and

Personnel for farm

Office assistant: there will be 2 office assistant in the Khulna office.

They will help the directors in their works.

Sales person: there will be 2 sales persons they will sell the product to

consumer in the Khulna shop.

42 | P a g e


43/57

Equipments

Computer Desks

Tables

Chairs & Seating

Charts & Bulletin Boards

Computers

Air conditions

Chairs

Telephones

Mirrors

Record Keeping

Software

Cash Register

Product Catalog

Internet Connection

Fan

Lighting

43 | P a g e


44/57

Compensation and benefit

packages

Compensation and benefit are very complicated issue for every business. Fair and

attractive compensation packages are important for attracting and retaining

employees. We will try to provide good compensation and benefit packages for our

employees.

Compensation: Our compensation offerings include-

Salary: It will be the main component of our compensation package. The

employees will be paid a fixed monthly salary. We will pay our employees

reasonable salary to retain them in our business. Salary will be tied to a person's

skills and experience. Subsequent increases will be based on our employee's

performance, value and contribution to our organization.

Bonuses: We will be offering bonuses to our employees once a year.

The yearly salaries of employees are given below.

Assistant Manager and

Designer(outlet 1)

(BDT)

108,000

Assistant Manager and

Designer(outlet 2)

108,000

Accountant 1(outlet 1) 60,000

Accountant 2(outlet 1) 60,000

Sales personnel 1(outlet 1) 36,000




Total Employees 10

44 | P a g e


45/57

Total Payroll 480,000

Benefits Package:

Our benefit packages will include-

Vacation: We will allow our employees one-week vacation after each year of

employment.

Sick and personal days: Due to situations such as personal emergencies or

religious holidays, our company will provide extra paid personal and sick days to

employees.

45 | P a g e


46/57

Financial Segment

Financial strategy is a major part for business. In here we have to overlook our whole

business cost and analysis them

Income Statement (1 year)

Amount(tk) Amount(tk)

Sales revenue(300kg4daysper unitprice 350tk12month)

Less: cost of production/cogs

Raw materials

Fixed cost

Labor

Total cost of production

57,00,000

1,15,00,000

45,50,000

5,04,00,000

2,17,50,000

Gross profit

Less: administrative expenses

Selling expenses

Total operating expenses

60,00,000

6,00,000

2,86,50,000

66,00,000

Operating profit(EBIT)

Less: financial expenses

Depreciation(55,00,000+25,00,000)2

0%

Earning before tax(EBT)

Less: provision for taxation(20%)

Earning after tax(EAT)

2,20,50,000

25,50,000

16,00,000

1,79,00,000

35,80,000

1,43,20,000

46 | P a g e


47/57

Projected Income Statement (5 years)

Particulars Year -1 Year-2 Year-3 Year-4 Year-5

Salesrevenue(purchasing unit)

1,44,000 1,92,000 2,40,000 2,88,000 3,36,000

Less: cost ofproduction/cogs

Raw materials 57,00,000 76,00,000 95,00,000 1,14,00,000 1,33,00,000

Fixed cost 1,15,00,000

1,53,33,333

1,91,66,667

2,30,00,000

2,68,33,333

Labor 45,00,000

60,66,667

75,83,333

91,00,000

1,06,16,667

Gross profit

Less:administrationcost

2,86,50,000

3,82,00,000

4,77,50,000

5,73,00,000

6,68,50,000

Administration

expense

60,00,00

0

80,00,00

0

1,00,00,0

00

1,20,00,0

00

1,40,00,000

Selling expense 6,00,000 8,00,000 10,00,000

12,00,000

14,00,000

Operatingprofit(EBIT)

Less :FinancialcostFinancialexpense

25,50,000

29,40,000

36,75,000

44,10,000

51,45,000

Depreciation 16,00,000 21,33,333 26,66,667 32,00,000 37,33,333

Earning beforetax

1,79,00,000

2,38,66,667

2,98,33,333

3,58,00,000

4,17,66,667

Less: Provisionfor taxation(20%)

35,80,000

47,73,333

59,66,667

71,60,000

83,53,333

Earning AfterTax

1,43,20,000

1,90,93,333

2,38,66,666

2,86,30,000

3,3413333

Capital Requirement

47 | P a g e


48/57

Capital requirement Amount(tk) Amount(tk)

land and site development

building

transport

equipment

total fixed asset

pre-operating expenses

working capital

raw materials

labor

administration

other

total working capital

total working requirement

20,00,000

25,00,000

30,00,000

40,00,000

57,00,000

45,50,000

60,00,000

45,50,000

1,15,00,000

2,00,000

2,08,00,000

3,25,00,000

Owners Contribution

Providers Contributed capital

48 | P a g e


49/57

Shah Alam Hera 2242000

Zarin Rafa 1057000

Jamshed Ahmed 973000

Methun Kumar Sharkar 973000

Rubayeat Ferdous 973000

Raisul Islam 973000

Fund Resource

Particulars Amount

Risk Fund 500000Poor Fund (5%) 200000

Bonus (7%) 318500Extra fund 300000

Building CostParticulars Amount(taka)

Office room 500000

Machine Room 1200000

Motor pump room 50000

Care taker room 50000

Garden 100000

Store room 400000

Extra room 200000

Total 2500000

LOAN REPAYMENT SCHEDULE

49 | P a g e


50/57

Pv =X

Or,22750000 =X

Or, X =

Or, X =

LOAN REPAYMENT SCHEDULECALCULATE OF IN STALLMENT

Year Principal

Amount

Outstanding

Installme

nt

Interest

@14%

Principal

Repayme

nt

Remaining

Balance

1 2,27,50,000 66,25,506 31,85,000 34,40,506 1,93,09,494

2 1,93,09,494 66,25,506 27,03,329 39,22,177 1,53,87,317

3 1,53,87,317 66,25,506 21,54,224 44,71,282 1,09,16,035

4 1,09,16,035 66,25,506 15,28,245 50,97,261 58,18,774

5 58,18,774 66,25,506 8,14,628 58,17,878 896

The loan exists due to considering fraction consideration.

LAND SIDE DEVELOPMENT

50 | P a g e


51/57

PARTICULARS COST (TK)Cost of land 1600000Cost of internal road 70000

Cost of gate 70000Cost of clean 50000

Total 179000

PREOPERATING EXPENSES

We have some pre operating expenses also such as Trade License, insurance charges,

export license and miscellaneous expenses.

Particulars Cost (taka)

Trade license fee and Gov. fees 100000

Insurance 50000

Miscellaneous 50000

Total 200000

Financial plan and loan requirement

Noconut plans to contribute taka 3, 25, 00,000 covering the cost of the land and

building and pre-operating expenses. A loan will be required for the rest of the project

cost.

Particulars Owners Equity Loan Total

51 | P a g e


52/57

Fixed capitalLoan 20,00,000 20,00,000

Building 25,00,000 25,00,000Transport 30,00,000 30,00,000Equipment 12,00,000 20,00,000 32,00,000

Pre-operatingexpense

2,00,000 2,00,000

Working capital 38,50,000 1,77,50,000 2,16,00,000

Total 97,50,000 2,27,50,000 3,25,00,000

Percent 30,00% 70,00% 100,00%

Balance Sheet

We start our calendar year with 25, 00,000 BDT in cash in 1 st year. During the year we

expect to run the business adjusting payments from revenue. However the projection

shows that we have a loss in year 1st year so we adjust that money from our cash in

hand. So at the beginning of year 2nd year we have 2, 10,000 BDT of cash in hand and

inventory of 90,000 BDT. We proceed through next two years applying the right

strategy and as shown in the balance sheet, we expect a healthy growth in net worth,

from approximately 310,000BDT in year two to 365,000BDT by the end of year five.

Year -1 Year -2 Year -3 Year -4 Year -5

Assets

Current

Assets

Cash 25,00,000 25,00,000 25,00,000 25,00,000 25,00,000

Inventory 1,25,000 1,35,000 2,50,500 3,21,201 2,75,000

Other

Current

Assets

0 0 0 0 0

Total Current 26,25,000 26,35,000 27,50,500 28,21,201 27,75,000

52 | P a g e


53/57

Assets

Long Term

Assets

Long Term

Assets

3,20,000 3,12, 213 4,23, 650 3,12,542 1,25,432

Accumulated

Depreciation

27,000 35,652 26,532 25,320 24,201

Total Long-

Term

Assets

2,70,552 2,50,620 1,95,230 3,25,620 2,65,251

Total

Assets

6,07,552 6,01,620 6,18,230 6,57,620 4,24,201

Liability

and Capital

Current

Liabilities

0 0 0 0 0

Accounts

Payable

0 0 0 0 0

Current

Borrowing

0 0 0 0 0

Other

Current

Liabilities

0 0 0 0 0

Subtotal

Current

Liabilities

0 0 0 0 0

Long Term

Liabilities

Total

Liabilities

1,33,53,620 1,35,25,026 1,12,15,350 1,08,20,604 1,02,20,604

Paid-in

Capital

0 0 0 0 0

Retained

Earning

0 0 0 0 0

53 | P a g e


54/57

Earnings 1,43,20,000 1,90,93,333 2,38,66,666 2,86,30,000 3,3413333

Total

Capital

2,16,00,000 2,16,00,000 2,16,00,000 2,16,00,000 2,16,00,000

Total

Liabilities

and Capital

3,59,53,620 3,00,78,646 3,30,10,934 3,24,20,604 3,18,20,604

Net Worth 3,59,53,620 3,00,78,646 3,30,10,934 3,24,20,604 3,18,20,604

UTILITIES COST

We use electricity, gas, telephone, and internet for the producing process well as export

process. The cost is:

Utility Cost(Tk)Electricity 90,000Gas 16,500

Telephone 12,000Internet 4,000

Total 1,22,500

BUILDING AND CIVIL WORKERS

PARTICULARS AmountBuilding 25,00,000Equipment 32,00,000Transport 30,00,000Total 75,00,000

Contingency Plan

54 | P a g e


55/57

If our project fails to generate the income we are expecting and if it becomes really

tough on our part to pay back the bank loan we would have to go for an exit strategy.

Deciding on this contingency approach is one of the toughest decision and we wouldhave to take care of it very seriously. And before taking any drastic action we would go

over the whole situation more carefully to see where it is possible to deal with the

problem or not. If nothing works out, we would sell all the fixed assets and first of all

pay back the money borrowed from the bank. If we have any money left, we would

disperse that amount equally amongst all the partners.

Conclusion

Bangladesh is an agricultural country. So we will try to make a good advantage of it.

As we know that coconut water has a long history in our country. It has also a role in

religion and symbolism. Flavors of our product are varying based on the natural

source and chemical ferry. The study of pollens and spores in row materials can

determine floral sources of coconut. Coconut produced by other labors and employs

has distinctly different properties. It gets it sweetness from monosaccharide fructoseand glucose and has approximately the same relative. As we select Khulna as our

location, we will get well facilities there. In present, the contribution of our juice

production in our country is 24%.The total cost of our green coconut water production

is 3, 25, 00,000. We use 30% equity amount and 70% debt amount. In this way, we can

play vital role in our economic side. However, we have some weakness and threats. We

will try our best to remove them so that we can go ahead easily. In the end we can tell

our consumers that we will be one of the top factories in our country within 5 years.

55 | P a g e


56/57

Bibliography

A Business Plan on different Juice factory

Some Business Plan reports from BBA seminar.

Some by business module classes.

56 | P a g e


57/57

Business Plan for a new product

Documents

Transcript of Business Plan for a new product