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Executive summary

Renaissance a business venture initiated by a group of ten people, the main purpose of this

business is to help the graduates, women and other people of the society intend to become

entrepreneurs. In today’s context it is not that easy to find a good job promptly and sometimes

jobs are not that much enriched. Graduates study and witness several issues throughout their

learning, they are taught in a pragmatic manners so that they can do something unconventional

but it has been deteriorating tendency among many graduates of being entrepreneur. That’s

why Renaissance comes up with the ideas of making entrepreneurs for the nation. It will ensure

a couple of benefits first, people can awake their dormant talents and there will be lots of

business opportunities for the country. The vision of Renaissance is “Making the country one of

the most appealing business states across the globe”.

The second part of the report is the industry analysis where it has been stated some key

aspects, history, economic ups and downs critical success factors etc. regarding this industry. As

it has been found that the key success factors are; efficiency, strong management team, bunch

of prudent consultants, service variety, a field of specialization and partnerships. Consulting

firms have been providing several services in such areas like; finance, management, marketing,

technical and scientific areas. They work as an extended wing of the clients. Firms must be

quite efficient and their service has to be the reliable one and upon depending on their services

clients can overcome their road blocks. This industry has faced several upturns during 1980s

and 190s and due to slump in 2009 it also faced a downturn as well.

Market segments for Renaissance have been the youth society, and other aged people

interested in business of both urban and rural dwellers. These people have the quality of

openness to change and enthusiastic in business. SWOT analysis have also been conducted

where Renaissance’s main strengths are innovative business project with its unconventional

business thought, its expert subject matter experts who are quit knowledgeable in their fields.

Weaknesses have been its newness that questions its reliability and unavailability of the experts

as sometimes it incurred plenty of expenses to hire expert consultants. Opportunities are

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viewed as there are lots of talented graduates who can really initiate their own businesses and

lack of quality jobs that actually encourage customers being entrepreneurs. Threats are such

that poor economic conditions that impede smooth business for the customers and also fears

of many customers to become entrepreneurs because of the perception of being failure.

Marketing plans have been quite transparent, here key promotional tools are advertising on

different social networks, daily newspapers, direct communications, posters and also some

prudent methods such as; seminars, talk shows in different areas. there are four types of

services such as; Arun Tarun (Youths resemble to the sun), Alokito Jibon ( Enlightened life),

Sreshtha (The great one) and Einstein Hawkins and these services will be available respectively

to the youths, females, people intending to business and technical people like engineers,

agriculturists, information technologists and so one. So the pricing strategy has been quite fair.

For any type of small business the consulting fees are BDT: 10,000 to 15,000 for a technical

business the prices will be BDT 20,000 to 30,000 and for large business initiatives prices will be

BDT 100,000 to 200,000.

Renaissance management team comprise with the teams of foundation, management,

advisors, SMEs etc. In the founding team it has got an organogram topping with Chairman, then

vice chairman and eight of directors. Advisors are also there to provide guidelines in legal,

taxation issues. SMEs are those consultants who provide constructive ideas for a business they

are of different fields such as; finance, economics, marketing, engineering, agriculture etc. the

management team contains chief executive officers, other chief officers in different

departments.

At present Renaissance has four types of services for each of them, firm is prepared enough but

it also requires some more developments. Right now services can be conducted at a moderate

manner but later on there will be some additional investments and some local foreign experts

will also be hired to provide best services.

Locations have also been selected considering the convenience in reaching the customers and

its business suitability. Right now there will be a head office at Dhaka at either Banani or

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Dhanmondi or at both because of reaching graduates more easily as there are plenty of

universities located. And regional offices are being planned to establish in both Chittagong and

Sylhet because the two cities are vital points of business and also there lots of private and

public universities.

The venture will start with an amount of BDT 5,000,000 where 100,000 BDT will be acquired

from the creditors. According to the financial projection Renaissance will achieve a net profit of

BDT 546,000 in fiscal year 2014-15 and BDT 828,100 that indicates an increase of 66% increase

in profits. There will also be increased in the balance sheet. Ratio analysis also indicates a sound

condition; current ratio has been 3.32 and 3.76 for the next year, profit margin ration has been

21.84% and 27.60% for the year, asset turnover ratio has been .47 times for the fiscal year

2015-16, return on asset is 13%, return on equity 15.96%, debt to asset ratio is 19.48% for the

fiscal year 2014-15 and for 2015-16 the ratio is 18.46% and the times interest earned ratio is

8.8% for 2014-15 and for 2015-16 10.86%.

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Section: 1

Company Description

1.1 Introduction

The name of the proposed venture is “Renaissance” it’s a consulting firm that aims at

producing well knowledgeable and enthusiast entrepreneurs for the country. The firm will be

based on providing realistic advises so that entrepreneurs may find the best businesses in

accordance to their preferences. The firm has been thought considering some important issues

as the customers (especially graduates) can think beyond the conventionality and innovate the

brand new ideas for ventures. The focal point here the customers will be solicited to attend

seminars, workshops or different symposiums that will be arranged by the company, attendees

will later on will be provided the proper scenario of a particular business. These will be

organized in different parts of the country, especially in campuses, or other places to attract the

graduates.

In today’s context the most important thing has been the more innovation the better prospect

to explore, if it confirms the worthiness. That’s why Renaissance has come up with the idea of

promoting the notion of making entrepreneurs so that the graduates can be self-reliant. It’s

been a trend that many of the graduates actually fantasize about being the incumbent of the

posts in different Multi-National Corporations, Banks or other prestigious organizations. In spite

of the talent they are quite risk averse. According to an article of business week it has revealed

that only 42% among the students want to make entrepreneurs. In another study conducted by

Karen & Klein in business week shows that 5.9% decrease in new ventures in 2011 from 2010

where only 543,000 new businesses has been created in USA. So considering this fact this firm

(Renaissance) is being implanted to make the graduates become self-reliant ones and make

their own bosses.

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2: Vision, Mission and Objectives

In the previous discussion it’s been conspicuous that Renaissance will help make entrepreneurs,

yet there have been some strategic facts that actually speak profusely of the firm. The firm’s

vision, mission and goals are as follows:

Vision:

“Making the country one of the most appealing business states across the globe”

Mission:

“Generating plenty of feasible business ideas that pave business opportunities amongst the

people of the country”

Objectives

To accomplish the mission Renaissance has set some goals which will be corresponding and

time perspective such as:

To set a target market (graduates, youth society or other interested people)

To encourage the customers in a relevant manner

To surface out excellent business ideas that will help create meaningful aspirations

amongst the graduates and the customers.

To build a strong rapport with the target customers and communicate them at regular

intervals.

To make a market irrespective of rural and urban territories.

These are the strategies point of views of Renaissance with some meaningful aspirations.

Nonetheless these are not that easy to achieve, some contingencies will take place that could

impede the pace the firm. But if things are thought in advance it will later help assume things

more preciously.

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1.3 Proposed Services

Services that Renaissance intend to provide to its customers, the services have been named

with respect that best fit the title and that are the means of generalizing the broad customers’

segmentations;

Arun Tarun (Youths resemble to the Sun): both of the terms are Bengali, as Arun means the

sun and Tarun means the youth, these have named considering the youths who are highly

aspirant and most of them aged from 22-26 the fresh graduates. These people usually

belong to generation ‘Y’ the people who are born after the year 1979, these people tend to

be much entrepreneurial, having sound knowledge in technology and most of them are

aware of multiple cultural aspect as they surf internet regularly, watch English and Hindi

movies a lot. They will be encouraged through different promotional means which will be

discussed later of the report. They will be encouraged to launch ventures of different

categories such as; E-commerce business such as; online retailing of different products,

small and medium enterprises such as fast food businesses, fashion house, or other

agricultural businesses that will require less capital to start.

Shreshtha (The greatest): this Bengali term “Sreshtha” used for females, who are actually

the best ones. Here the potential and the greatness of women are being admired. Women

in our country have to sacrifice their hopes and aspirations and must conform to the

expectations of their families in some cases. Nowadays things have started changing and

women are becoming entrepreneurs and initiate splendid ventures. As in our country some

admirable business women have ensured a recognized identity such as; Biwi Rasel, Farzana

Shakil, Kaniz Almas Khan, Tamara Abed etc, both have been quite successful in their areas of

expertise. Women will be counseled by some expert women and they will be assisted to

venture their own businesses in their special areas like: Fashion house, beauty parlor, handy

crafts’ businesses

Alokito Jibon (Enlightened life): under this category a broad number of people will be tried

to include. It will be emphasized for both men and women at different ages. People may or

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may not be the graduates or from both urban and rural dwellers. A huge number of

business ventures will be taken into the account. Subject Matter Experts SME will counsel

them and provide them the best expert opinions to start a business

Einstein-Hawkins: This service is actually named by the two great physics scholar Albert

Einstein and Stephen Hawkins. This scheme is especially for the technical people such as:

Information Technologists, Architects, and Engineers of different disciplines. They will be

assisted venture their own businesses they will be counseled by the SMEs of their fields.

These are some glimpses of the proposed services in the chapter of Service development and

strategies will be discussed in details.

1.4 Legal Status:

The firm is registered under “The Company Act-1994” and it will be initially a private company

as it ranges the member of 10 who are the key business people.

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Section: 2

Industry Analysis

Renaissance is consulting firm and it has to be sated that it’s a unique firm. It rarely resembles

to other types of consulting firms in the country. There are plenty of consulting firms in the

country who provide services of different types. Consulting firms usually do partnership with

many of the large organizations to provide particular activities on behalf of the firms.

2.1 History of the consulting industry

According to the article regarding management consulting in Wikipedia the first firm is Arthur D.

Little Inc. founded in the year 1886 and their field of expertise was in general management by

conducting technical research. However it is also believed that the first consulting procedure

was established in 1893 by Fredrick Winslow Taylor who independently provided consulting

practices in Philadelphia. Booz Allen Hamilton was founded by Edwin G. Booz, a graduate of the

Kellogg School of Management at Northwestern University, initiated management consultancy

in 1914 being the first ever service provider for both government and industry clients.. Later

1926, James O. McKinsey, professor of Managerial Accounting at the University Of Chicago

Booth School Of Business, founded McKinsey

2.2 Major areas of consulting

Consulting firm provides different types of services for smoothing out the business operations.

In many cases firms and individuals depend on consulting firm in order to minimize the costs

and utilize the expert advices. Consulting firms provide such services

o Management

o Technical

o Scientific

o Logistics

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o Security & vigilance

o Human resources

o Information technology

o Marketing

o Finance and Accounting

2.3 Some international consulting firms

US based consulting firms

o Booz Allen

o Deloitte Consulting

o IBM Global Services

o McKinsey & Company

Irish based consulting firm

o Accenture

German based consulting firm

o Roland Berger

Indian based consulting firm

o Tata Consultancy Services

2.4 Some national consulting firms

In Bangladesh there several consulting firms who provide excellent services in different aspects

and they partner with sever national and international organizations. Some of these are

o Pro age associates

o HR kites

o E-zone HR ltd

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o Sirus Marketing and so on

2.5 Key success factors in the industry

Efficiency: The most important factor for this industry and for survival is the efficiency.

Firms in the industry can be outcast if they lack efficiency. Firms must provide best

services to its customers in terms of expertise and money.

Strong management team: Firms must be incorporated with prudent management.

They also need the expert consultants having adequate and updated knowledge of their

respective areas

Particular specialization: Consulting firms usually an area of specialization such as;

technology, production, management, scientific etc. they must ensure it and they have

to be competitive in respective aspects.

Variety in the services: Firm should be versatile enough and must not rely on particular

issues. The more they offer variety of services, the more reliable it can become to its

customers.

Partnerships: To quite an extent the firms must rely on partnerships with large

corporations and distinguished individuals. So promotional has to be defined in such a

way that will enhance the scopes of much partnership with the clients.

This business contains that much rick as in other manufacturing and commercial

establishments. The consulting firms must be aware of the characteristics that mentioned

earlier other it become too difficult to survive.

2.6. Economic states of the industry:

The industry has been facing several ups and downs since its inception. It acquired a growth of

20% in 1980s and 1990s. It has also had a fall in 2001-2003 worldwide because of economic

conditions. It also grew smoothly by 2009’s economic downturn.

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Section: 3:

Market Analysis

In this chapter key market prospects and the target customers’ depiction will be elucidated. As

the firm while intending to explore or make a good business out of it, it must define its market

well to assess its potential buyers and the mode of competition properly. The focal issues are

here; the market segmentation, buyer and the competitor analyses will be discussed in detail to

generalize the market more specifically.

3.1 Market Segmentation

Literally market segmentation is to divide the customers into distinct groups such as;

geographic and demographic.

S.l. Segmentation type Target Markets

1.

Geographic

Urban dwellers

Rural ( Mostly the graduates/people from remote areas)

2. Demographic

The young people mostly aged up to 22-26 years

Male, female ( who are highly expected and tried to

attract the most )

The educated society who have had graduates from

universities or colleges

3. Psychographic

The target market has the youth so it’s obvious to attract

the people who are gregarious in nature and having an

ease to change.

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In the above table it has been discussed about the target market segments. The segments have

been divided into three parts. In the geographic segmentation is has stated about both the

urban and the rural people, as the youths are the key targets so it does not generalize in way of

focusing a distinct part. The rural people who are from remote areas where opportunities are

few and people are of these areas mostly dependent on the urban areas. It will be emphasized

to make a worthy venture in these areas so that employment opportunities of these areas can

be paved.

Demographically it has been focused the people of aged up to 28 but this does not mean that

only the people up to these ages will be targeted. It will expand up to other aged people. Both

male and female are targeted and women who are one of the most key parts of economic

growth of the country so their participation is the most key thing over here.

Psychographic issues have been mentioned as firm focuses the people who are enthusiast and

challenging that’s extrovert people are the targets. As the people who are conservative and

reluctant to change they might find such initiative not that much significant. But if it is done so

firm will lose its universal appeal. That’s why some strategies have to be undertaken to make it

a worthy one to everyone.

3.2 SWOT analysis

One of the most substantial factors that determine the internal and external aspects that

directly and indirectly the business operations is the SWOT analysis, which states

S: Strength

W: Weakness

O: Opportunity

T: Threat

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Now Renaissance SWOT analysis will be discussed as follows

Strength: The key strengths for this venture are

Innovativeness: As this firm has had a different appeal and such venture will attract its

target customers well. It deals with the people who intend to become entrepreneurs

and people do feel quite afraid when they plan a new venture. They think their hard-

earned money will go in vein. So by its distinct mode it will show the proper paths

towards the people to make a worthy venture where profitability is quite assured by

expert opinions

Expert team: Another significant aspect is the SME who are quite knowledgeable and

can guide people fruitfully. The SME includes all types of experts who are highly prudent

and have had a well round of real experiences in their field of expertise. They will be of

both from the firm and also from outside. These people are; real business and financial

analysts, entrepreneurs (male & female), technical people such as; engineers, IT

specialists, agriculturists and researcher in different fields. It will maximize the reliability

to the customers

Financial backups: The venture will start with sound financial backups so that it assures

a sound durability for the firm. At least three years financial backups are ensured by its

owners.

Legal status: As it’s been mentioned earlier that the firm will be registered under ‘The

Company Act: 1994’. So it is a legally recognized venture which enhances the trust to

the customers.

Weakness: Despite having all these factors it also has got some impediments which work as

a stigma for the firm. The basic weaknesses are for the venture as follows;

Nature of the business: As it’s not a manufacturing unit, so the firm does not deal

with a tangible product nor is it that easy to make profit. So all it depends on the

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service that it provides. A lack of expansion in the business may occur if it fails to

attract its potential customers. Service oriented firms must rely on the reputation or

a strong brand name, but it does not come overnight.

Availability of SMEs: It has been stated earlier that the SMEs will be hired outside it

it’s needed, so it is a question how better and the perfect ones are being hired. If it’s

not ensured then all the efforts will go in vein.

Lack of reliability among the customers: Customers are not that easy to attract. As

it’s a new one and has not had that prestige it could cause a sense of not a reliable

one to the customers. Customers may find this business a non-worthy one.

Opportunity: An external aspect but strongly influence the business here Renaissance has got

opportunities in spite of some inevitable weaknesses such as

Increased numbers of graduates in the country as people are much conscious about

education and lots of students get enrolled in universities every year. So the graduates

are a huge market for the firm and most of them intend to launch their own star ups

Lack of quality jobs in the market except a few jobs most of the jobs don’t attract the

graduates in terms of standards and salaries. Graduate often regret for the jobs they

currently hold and that makes them go abroad for a better standard of living.

Private university graduates who can amass a handsome sum for a new start up. The

students of these particular area specially graduates of North South, BRAC or

Independent University Bangladesh are usually affluent ones and they can initiate their

business

Sound knowledge of technology among the youths which can create a lot of business

opportunities for them. Computer based business has ensured a lot of opportunities in

the country

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Threats: Threats can be depicted as follows

Poor or moderate economic status of the customers which can impede them to dare

think of a new venture

Reluctance to the people of being entrepreneurs as they may think of a job where they

can assure themselves of steady income at regular intervals

Political turmoil which affects business and our country has to tolerate a plenty of loses

every year

Bank loans with the impact of usury, venture may definitely needs capital sometimes

loans from the financial institute and the borrowers face the curses of high interest

rates and failure to pay the interest may even cause of termination of the venture or

even bankruptcy which will definitely affect the target customers

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Section: 4

Marketing Plan One of the most important parts for any business to set a well marketing plan to reach the

target customers well, at this point Renaissance’s marketing plan will be depicted in detail

where it will be focusing key marketing plans and how well it will try its target market

segmentations.

Since the business is a different one and also a new venture the inevitability of marketing plan

is much substantiated. If it lacks or contains a poor one to strategize it might cause a sheer

failure for the business. The marketing plans will be depicted in terms prices, and promotions.

4.1 Marketing Strategy at a glance

Previously four types of services have been stated such as: Arun Tarun, Sreshtha, Alokito Jibon

and Einstein-Hawkins. Each of them needs distinct modes of plans to strategize to make these

worthy ones. main focuses are the youth society and as per the segmentation process it has

been depicted about both urban and rural dwellers and the people who are inquisitive in

nature they are targeted so the key things are here to identify the graduates who are of these

nature, quite challenging, skilled communicator outspoken, creative, and confident and capable

of coping up with any situations. So to make aware of this an acute survey will be conducted by

the research assistants at different universities and different locations to assess who are really

capable of doing a business and intend to become entrepreneurs. Things like their personal

lives, belongingness, financial soundness, family backgrounds and most importantly their

interests of being entrepreneurs.

By doing so it will help identify the customers and provide assumptions who are our potential

buyers for the services. They will later be communicated and influenced to take services from

the firm. This is a continuous process that will be conducted in different time perspectives.

Strategies will also be created to make more customers.

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4.2 Promotion means

Promotions require intellect and money to spend. It brings a lot of success for the organization,

this is the way to make aware the customers more about products. This also bridges the gaps

between service introducers and the customers. Here main focuses of the promotions are as

follows;

Advertisement: The initial approach for promoting the services is the advertising.

Advertisements will be made by experienced advertisers to attract the customers more

efficiently. The modes will be of different type. One of these will be online advertising which

has become very popular and for this business as it will appeal the youth society who is

quite active in social networking websites such as: Facebook, Twitter etc. there will be a

Facebook fan page. A website will be created to make aware the target customers more

about the firm. Other means such as Television advertising which can cover a huge portion.

Billboards in different major areas of Dhaka city so that customers can have a glimpse on it,

a toll free customer care number will be shown there so that customers can clear their

quarries. Newspapers will be one of the most effective modes of promotions; here

attractive ads will be published on the pages of newspapers. The most popular newspapers

will be chosen such as; Prothom Alo, Ittefak, The Daily Star, The observer etc.

Seminars, talk shows: Another means will be seminars talk shows at different universities,

areas or convention centers. This is a broad means of promotions seminars or talk shows

will be conducted by the speakers who are expert in particular fields such as; financial

analysts, researchers, technical people like engineers, architects, agriculturists, information

technologist, women entrepreneurs etc. these arrangements will also be telecast on

television channels. These are treated as promotional means because it will approach the

customers about the firm so that they can become eager for the firm’s services. Seminars

will be advertised on posters, social networking sites so that customers know about these

and attend them regularly. Seminars or talk shows will be organized at different times on

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different issues. Different types of seminars will be conducted to attract different types of

customers.

4.2 Pricing Strategy

Pricing should be strategized in such ways so that it ensures the optimality between the quality

and the prices. As the key source for the firm’s revenues is the consulting fee. The fees are

planned in such ways so that it can be easily bought by the customers.

For general business plan (Small or Medium venture) consulting the price is BDT 10,000-

15,000 depending on the nature of business. Where it includes all making the business

plan, its feasibility, how it well fits, profitability, key markets. So at this price level

customers will get all sorts of benefits and be adequate aware the business they intend

to initiate.

For technical business plan (Einstein-Hawkins) charge will be BDT 20,000-30,000 for

small business where expert people will provide the counseling to the entrepreneurs.

Different issues regarding the venture, its markets, points of differentiations will be

focused as well. Some foreign experts might be hired in case of any complicated

business plans.

For a large investment business where the investment amount is relatively higher and it

requires more accurate information the consulting fees will be higher it can be BDT

100,000 -200,000 it can be for both general and technical business plans. There will be

much more research on the business and consulting will be more delicate and accurate

to make the venture a worthy one.

Seminars and talk shows will tried to be conducted at free of cost at different

universities in terms of promotions. But some seminars will be conducted for generating

revenues at different places. In this case a small amount will be charged it can range

from BDT 100-1000

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Section: 5

Management Team Renaissance’s management team includes different types of personnel, owners, advisors and staffs (Salaried) etc.

5.1 The Founding Team

This team includes the people who actually run the firm and key decision makers. They have

significant impact on the organizations the key people are here as follows;

5.4 Management Team

Abovementioned departments are the heads and key controller of the respective functional

departments that will be responsible for their respective departments. Some line managerial

posts will be occupied by talented and experienced people for the departments to carry out the

Chairman

Vice- Chairman

Director Director Director Director Director Director Director Director

Chief Executive Officer (CEO)

Chief Marketing Officer (CMO)

Chief Finance Officer (CFO)

Chief Information Officer (CIO)

Chief Procurement Officer (CPO)

Chief Research & Development Officer (CRO)

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operations for each department. Staffs will be recruited who will report to their immediate

supervisors of the departments. These people are salaried and be hired based on qualifications.

5.2 Advisory Board:

It will also contain an advisory board will be advising the firm on different aspect a chief

advisors will be recruited, some advisors will be appointed or hired in different aspects such as;

legal, accountancy or taxation related affairs.

5.3 Board of SME

A board of subject matter experts will be appointed from both internally and externally. These

subject matter experts will provide the consultancy to the customers. They are expert in their

respective fields. This board contains people form finance, economics, marketing, information

technology, engineering, statistics, agriculture, university faculty members and entrepreneurs

of different fields.

5.5 Strategic Partners

Apart from this a strategic partnerships will be built with some people who will have influences

on the firms, such people can be the University Faculty members, (these people will be of

different disciplines such as; business administration, economics, science, information

technology, engineering, agriculture) and researchers of different fields.

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Section: 6

Operations Plan Renaissance is not a manufacturing unit; it is a service oriented business. Hence it doesn’t have a procedure of production. Throughout this section some operational factor, location planning will be discussed.

6.1 Location

The location for the proposed venture is being tried to be in the commercial areas of Dhaka

especially at Dhanmondi or Banani and some other two major cities of Bangladesh Chittagong

and Sylhet will be made offices later.

6.2 Reasons behind choosing these locations

Dhaka being the capital of Bangladesh and the most preferred city for a business. The

city has been the address of plenty of large and small business organizations. It has also

been stated earlier that Dhanmondi and Banani are going be the offices. Firm’s

management is considering at least one of these two areas and they might make offices

in both of these areas latter. Renaissance’s key customers are the students and in the

city Dhaka there are some major public universities such as; Dhaka University,

Bangladesh University of Engineering and Technology, Sher-E-Bangla Agriculture

University and also lots of Private Universities. Dhanmondi and Bananai these two areas

have got plenty of private universities. So it will be an ease for the firm to reach the

graduates more easily than any other areas.

It has also been mentioned about other two major cities of Bangladesh, Chittagong and

Sylhet. These two areas have also got some reputed universities like, Chittagong

University of Engineering and Technology, Chittagong University and in Sylhet one of the

best science and Technology Universities Shajalal University of Science and Technology

is located with numerous private universities.

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These areas have some business appealing features such as; sophisticated places for

offices with modern amenities, good communications systems and ease of

communicating with the consultants.

6.3 Basic pitfalls of the locations

Despite having a lot of facilities here some disadvantages are about to be faced such as;

Excessive office rent: In the areas of Banani and Dhanmondi the office rents are

skyscraping which will incur a huge expenditure for the firm. Such expenditures such as;

advance office rent that requires a lot of money at a time.

Traffic Jam: Another head burning problem is in the Dhaka city is intolerable traffic jam

which will also impede the business smoothness. It will cause several problems such as;

employees’ late arrival in the office, late arrival of necessary things for the office and

also it might create problems for the customers in rendering the services.

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Section: 7

Service Design and Development Plan There have been four different types of services with distinct features all these are in

developing stage. These services are being planned delicately so that these can be worthy in

terms of necessity and profitability. Now the development phases of the proposed services are

being depicted as follows.

7.1 Services at a glance

SL Services name Target Markets Key promotions’ means

1 Arun Tarun Youths aged from 22-26 Social networking websites

Direct communications

2 Sreshtha Graduate Women

Women of different places

Social networking websites

Direct communications

3 Alokito Jibon

People of different ages of

different places

Direct communications

Seminars/Talk shows

4 Einstein Hawkins Graduates in engineering, IT,

agriculture etc.

Direct communications

Invitations for joint research

work

Social networking sites

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These are the services, target markets and key promotional means, as discussed earlier in

different sections.

7.2 Current development Plans for proposed services

For Arun Tarun firm right now is planning some easy and flexible business plans. Such

plans are of the venture of

o Small restaurant,

o Coffee shop

o Fashion house

o Online shopping

o Music stores

o Small department shop

o Native hand crafts

o Agricultural (Small sized crabs, mushroom or prawn farming)

o Garments’ accessories

o Event management

These businesses are about to be carried out by the fresh graduates these don’t require a lot of

capital. Currently Renaissance’s management team is planning to hire such consultants who

have expertise in these fields. Firm will provide adequate counseling in these issues. A city wide

survey is going to be conducted and an adequate number of research assistants are appointed

to make survey around the city of Dhaka initially on these businesses prospects. The key things

are here; firm has adequate number of business analysts who have had previous experience in

these businesses fields and numerous research assistants.

For Sreshtha which is designed for especially for women, here both graduates and other

types of women who are interested in business will be approached. They are encouraged to

initiate such ventures

o Beauty Parlor

o Boutique Shop

o Online shopping

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o Event management

And also any other businesses they intend to launch. Firm initially has some expert women who

are real life entrepreneurs they will counsel them and provide adequate information of such

business and the remaining things are same that previously discussed.

For Alokito Jibon the business will be a big one. A huge sum is required to start up that’s

why it covers a huge number of people across the nation. The ventures can be ;

o Ready-made garments factory

o Real estate business

o Manufacturing unit of different industries

o Agricultural businesses of large amount

o Shipping corporations

o Printing press

o Broker house

o Large department shop

To counsel the customers of such ventures firm has experts, analysts and technical personnel

with lots of experiences and recognitions. These also require prudent research resources of

industry analyses. Some real life entrepreneurs and foreign experts are also hired to provide

consultancy to the customers.

For Einstein-Hawkins project firm initially plans to help start ventures which are less risky

and capital oriented. The ventures over here can be

o Architect firms

o Software firms

o Constructions firms

o Research firms

o Audit firms

o Manufacturing units of different technical products such as; electric, machineries,

constructions, hardware, power plants, bio gas, agricultural; fertilizers, seeds,

pesticides and so on

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To fulfill the plans of the customers firm has appointed engineers, Information technologists

agriculturists, architects, Chartered accountants, Industrial engineers and also financial and

economic analysts as previously stated

7.3Proposed plans

Firm management team also plans for some business ventures in future. These plans will be

implanted very soon to enrich the quality of the firm such plans are

Hiring more consultants in numbers in different areas. It aims at servicing more

customers and customers will get consultancy from multiple consultants at different

aspects.

Introducing more unique business ideas in different sectors for the customers so that

innovation can be well addressed and by doing so customers can get a strong market

share and a profitable business.

Taking adequate initiatives to reach country wide, since Dhaka, Chittagong and Sylhet

are being tried to localize but in future renaissance will be available in most of the areas

of Bangladesh to ensure regional development to get much closer to our vision.

Partnering with other consulting firms of home and abroad to maximize the value of the

services that will ensure increased number of expert and recognized experts.

Ensuring international alliance by hiring more international consultants so that the

customers can aware of international industry trends of their proposed ventures.

Focusing more in women empowerment and for this numerous business prospects will

be paved for women so that our country’s women can become self-reliant and integral

parts for nation’s economic development.

Providing plans for technical business establishments so that our country can much rely

on its own talented people.

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Section: 8

Financial Projection Renaissance is a consulting firm; it can be referred to a medium size business organization. It does not require plenty of money to start up nor does it require a small sum like other typical small businesses. There are so many areas of expenditures and as the key source of revenue has been the consulting fee. Financial aspects of the Renaissance are as follows

8.1 Source of funds

Since it is a private limited company it cannot source any fund from stock markets like the public limited company. The funds will be amassed from the key people of founding team, who are the real financers of the venture.

8.2 Invested sum for the venture

The assumed invested sum for the venture is BDT 5,000,000 of equivalent to $ 62,500. This sum

will be collected from the founders and a portion from creditors who are acquainted of the

founders and only the investors and they will be provided interest including the principal

amount.

8.3 Detail of the investment by the founders and investors

Chariman Vice Chariman Directors InvestorsSeries1 1,000,000 600,000 2,400,000 1,000,000

0

1

1

2

2

3

3

Amou

nt in

mill

ions

Investments made by the founders

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Here in the above chart the key financers are the chairman and vice chairman who provide 32%

of the total sum and eight directors will provide a sum of BDT 2,400,000 or 48% of the total

investment and the rest BDT1,000,000 will be provided by the creditors that has to be replayed

with 10% simple interest.

8.4 Pro forma Income Statement for the years 2014-2015 & 2015-2016

Renaissance Income Statement

For the year ended June 30, 2015 & 2016 Years

2014-15 2015-16

Revenues

Consulting &Seminars’ revenues BDT: 2,500,000 3,000,000 Direct cost of revenues BDT: 0 0 Other BDT: 0 0 Total cost of sales BDT: 0 0

BDT: 2, 5000,000 3,000,000

Gross margin BDT: 2, 500,000 3,000,000

Expenses

Salary BDT: 1,2000,000 1,250,000 Rentexpense BDT: 250,000 260,000 Depreciation BDT: 10,000 11,000 Utilities BDT: 60,000 66,000 Marketing expense BDT: 100,000 110,000

Total operating expense BDT: 1,620,000 1,697,000

Earnings before interest and taxes BDT: 880,000 1,303,000

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Intei

8.5 Pro forma Balance Sheet

Interest expenses BDT: 100,000 120,000

Earnings before tax BDT: 780,000 1,183,000

Tax (30%) BDT: 234,000 354,900

Net Profit BDT: 546,000 828,100

Renaissance Balance Sheet

June 30, 2015 & 2016 Years

2015 2016

Assets

Cash BDT: 3,656,000 4,959,100 Equipment BDT: 2,000,000 2,200,000

Less: Accumulates Depreciation BDT: 10,000 11,000 BDT: 1,990,000 2,189,000

Total Assets: BDT: 5,646,000 7,148,100

Liabilities and Owner’s Equity

Liabilities:

Accounts payable BDT: 1,000,000 1,200,000 Interest Payable BDT: 100,000 120,000

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8.6: Pro forma Cash Flows

Owners’ Equity:

Owners’ Investments BDT: 4,000,000 5,000,000 Add: Net Income BDT: 546,000 828,100

Owner’s Capital BDT: 4,546,000 5,828,100

Total Liabilities & Owners equity BDT: 5,460,000 7,148,100

Renaissance Pro forma Cash flows

For the month ended June, 30 2015 & 2016 Years

2014-15 2015-16 Cash flows from operating activities

Cash receipts from revenues BDT: 2,500,000 3,000,000 Cash payments for expenses BDT:( 1,844,000) (1,990,900) Net cash provided by operating activities BDT: 656,000 959,100

Cash from investing activities Purchase of equipment BDT: (2,000,000) (2,200,000)

BDT: (1,344,000) (1,240,900) Cash flow from financing activities

Investments by owners BDT: 4,000,000 5,000,000 Loans BDT: 1,000,000 1,200,000

Net cash BDT: 3,656,000 4,959,100

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Through these assumed financial statement is has been conspicuous that there will be an

increase in every aspect of the financial projections in the fiscal year 2015-16. And firm is being

expected to have a growth in its total business.

8.7: Ratio Analysis

Current Ratio:

2014-15: Cash/ Accounts Payable, & Interest Payable = BDT 3,656,000/1,100,000 or 3.32

2015-16: Cash/ Accounts Payable & Interest Payable = BDT: 4,959,100/1,320,000 or 3.76

This actually states that for every BD T 1 liabilities firm has BDT3.32 and 3. 76 current assets to

meet the current liabilities.

Profit Margin Ratio:

2014-15: Net Income/Net Sales: 546,000/2,500,000 or 21.84%

2015-16: Net Income/ Net Sales: 828,100/3,000,000 or 27.60%

It states for that 21.84% and 27.60% of Sales contribute in the net profit.

Asser Turnover Ratio:

2015-16: Net Sales/Average Assets: 3,000,000/ (5,646,000+7,148,100/2) or .47 times

For each BDT sales the invested assets have been BDT.47

Return on Assets:

2015-16: Net Income / Average Assets: 828,100/ 6,397,050 or 12.94%

Assets contribute up to 13% to the net income.

Return on equity

2015-16: Net income/ Average Owner’s equity: 828,100/ (4,546,000+5,828,100/2) 15.96%

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15.96 % of Net income comes from the owner’s investment.

Debt to Asset Ratio

2014-15: Total Debt/Total Asset: 1,100,000/5,646,000 0r 19.48%

2015-16: Total Debt/Total Asset: 1,320,000/7,148,100 or 18.46%

Here only 19.8% & 18.46% of total assets are provided by the creditors.

Times Interest earned

2014-15: Earnings before Interest and Tax/Interest Expense: 880,000/100,000 or 8.8 times

2015-16: Earnings before Interest and Tax/Interest Expense: 1,303,000/120,000 or 10.86 times

To cover up the payments of interest there are 8.8 & 10.86 times earnings.