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Department of Banking
University of Dhaka

TERM PAPER ON
Preparing a business plan

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Department of Banking
University of Dhaka
The Assignment: Topic: Preparing a business plan Course: Introduction To Business Course No: 101

SUBMITTED TO
Mr. Abdullah Al Mahmud Lecturer Department of BANKING University of Dhaka

SUBMITTED BY:
Md. Jamal Hosen Roll No. 16-056 Department of Banking University of Dhaka

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Date of submission:

April 25, 2010

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Letter of Transmittal
April 29, 2010 Mr. Abdullah Al Mahmud Lecturer Department of BANKING University of Dhaka

Sir I have great pleasure in submitting the term paper on Assignment on preparing business plan. I have taken this term paper as a great chance to know more about business plan. This report gives a Practical scenario of business Planning. This will help me to get idea about business planning. And finally I can see that how much significant business Planning in real life situation is. I would like to thank you again for giving me such an interesting task.

Yours faithfully
Md. Jamal Hosen BBA-16th batch Roll No. 16-056 Department of Banking University of Dhaka

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Table of contents

Sl.no.

Name
Table Of Content Executive Summary Company Summary Products Market Analysis Summary Strategy and Implementation Summary Management Summary Financial Plan References

Page
04 05-06 07-09 09-10 10-12 12-13 13-14 14-18

01. 02. 03. 04. 05. 06. 07. 08. 09.

Telephone Sales Business Plan

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University Telephones

1. Executive Summary

1.1 Owner MD. Jamal, owner of Jamal University Telephones Enterprise, is the student department of banking of the university of Dhaka and is very familiar with his target customer base. 1.2 Ownership style
. Soleproprietorship business

1.3My business Jamal University Telephones Enterprise is a unique business in university


campus interested to deal in Telephones. 1.4 My philosophy University Telephones will offer Dhaka University students with other customers landline phones, cell phones, and cell phone plans.
.

1.5 Site selection Neelkhet, university area, because it is located just a half block from campus which is the major entrance and exit from campus.
.

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1.6 Customer Each year, students spend in excess of TK-10,00,000 for products and services with businesses serving the university community. University Telephones will focus on students that live on and off campus by offering products and service plans that are tailored to student needs. Approximately six thousand students live on campus. An additional twelve thousand students live off campus. University Telephones is accessible to all students & also others (non- students). 1.7 Competitive edge Unique business, well customer service, lower price etc.

1.8 Mission
University Telephones' mission is to offer its customers the highest quality telephone products and services. I focus on personalized service to my customers by offering convenience and rapid service. Additionally, University Telephones has the technologically expertise assist customers in picking the product and service that best meets the student's needs. Finally, I have strong vendor relationships with the product suppliers and will be able to meet customer's demand for the newest innovation in telephone technology.

1.9 Keys to Success


University Telephones' keys to success will include: 1. 2. 3. 4. Excellent customer service. Grow and maintain a referral network of customers. Focus expertise in cell phones and cell phone programs. Rapid response to customer problems with product or plan.

2. Company Summary

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University Telephones will offer Dhaka University students landline phones, cell phones, and cell phones plans. I, owner of University Telephones, believe the store is the perfect location to capture students as they make crucial purchases at the beginning of each term. University Telephones will provide students support and convenience second to none.

2.1 Company Ownership


MD .Jamal is the sole owner of University Telephones.

2.2 Start-up Summary


I will invest 400,000 in University Telephones. I will also secure a 500,000 longterm loan. The following chart shows projected initial start-up costs for University Telephones.

Start-up Requirements
TK

Start-up Expenses Legal Expenses


Insurance Rent Expensed Equipment

15,000 20,000 35,000 80,000

Total Start-up Expenses Start-up Assets


Cash Required Start-up Inventory

150,000

50,000 200,000

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Long-term Assets Total Assets

500,000 750,000

Total Requirements

900,000

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Start-up Funding
Start-up Expenses to Fund Start-up Assets to Fund 150,000 750,000

Total Funding Required

900,000

Assets
Non-cash Assets from Start-up Cash Requirements from Start-up Cash Balance on Starting Date 670,000 30,000 50,000

Total Assets

750000

Liabilities and Capital


Liabilities
Long-term Liabilities Other Current Liabilities (interest-free) 500,000 0 500,000

Total Liabilities

Capital
Planned Investment Jamal Other Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital Total Capital and Liabilities 400,000 0 0 400,000 (80,000) 320,000 820,000

Total Funding

900,000

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2.3 Company Locations and Facilities


Jamal University Telephones Enterprise is located on Neelkhet Street (university area) behind registered building, because it is located just a half block from campus which is the major entrance and exit from campus.

3. Products
The following are the products and services offered by University Telephones:

Landline Phones: Sony, RCA, Panasonic, Toshiba, GE, Sanyo, and Conair. Cell Phones: Ericsson, Sprint, Motorola, Neopoint, Nokia, Panasonic, and Sanyo. Cell Phone Accessories: antennas, batteries, belt clips, cables and adapters, cases, chargers, faceplates, and modems. Cell Phone Plans: local service, regional service, national service, prepaid service.

4. Market Analysis Summary


The university community serves 18,000 students. Each year, students spend in excess of 10,00,000 for products and services with businesses in the university community. In a recent campus survey, over 75% of students reported that they own cell phones. Of that number, over 80% reported that they also have a landline phone. This represents a multi-million money market in the university community. University Telephones will focus on students that live on and off campus by offering products and service plans that are tailored to student needs. Approximately, 6,000 students live on campus. An additional 12,000 students live off campus. Currently, there is no telephone equipment outlet operation within five miles of the campus.

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4.1 Market Segmentation


University Telephones will focus on two customer groups:

Students living on campus; Students living off campus; Non-students that work or live in university area. This group includes university faculty, administration, and university-area residents.

Market Analysis
Year 1 Potential Growth TK Customers Students Living 2% 6,000 On Campus Students Living 3% 12,000 Off Campus Non-students 5% 7,000 Year 2 TK 6,120 12,360 7,350 Year 3 TK 6,242 12,731 7,718 Year 4 TK 6,367 13,113 8,104 6,494 13,506 8,509 Year 5 CAGR 2.00% 3.00% 5.00%

Total

3.34% 25,000 25,830 26,691 27,584 28,509 3.34%

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4.2 Target Market Segment Strategy


The market for telephone equipment and cell phone plans is very fragmented, crowded and competitive. Among these, there are only a few large local firms that serve the entire city of Dhaka. The remainder are small firms that sell from kiosks in the surrounding malls. University Telephones' current niche is its location on Neelkhet Street. At the beginning of each term, a number of telephone equipment and service providers set up tables and kiosks on Neelkhet Street but after day ten, they have all left the area. University Telephones will have a permanent home on Neelkhet street and we believe that will be seen as a advantage by our customers.

5.Strategy and Implementation Summary

Jamal University Telephones Enterprise will promote the store opening. We will advertise in the university daily student newspaper as well as the university area advertising flyer. In the advertisements for the store opening, we will have a 20% off coupon for product purchases over twenty thousands. We will continue this discount for the first month of operation.

5.1 Competitive Edge


The University Telephones' competitive edge is:

Location: Jamal University Telephones Enterprise is located on NEELKHET Street, just a half block from campus. The foot traffic on NEELKHET Street is very strong. It is sandwiched between a popular student espresso shop and the University Bookstore. Customer Service: I, owner of Jamal University Telephones Enterprise, am a student of the department of banking of DU and am very familiar with my target customer base. I have an excellent reputation in area of campus. Most importantly, the store location will improve customer satisfaction when

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problems with product or service occur. Customers will value the ability to come into the store between classes to resolve any problems that come up.

5.2 Sales Strategy


The sales strategy of my enterprise is simple. The key to customer satisfaction is having the product and services that meet the customer's needs. A crucial part of that is to also have knowledgeable employees to help customers find what they want quickly.

5.2 Sales Forecast


The following is University Telephones' sales forecast for three year:

Sales Forecast
Year 1 Year 2
TK 151,500 251,000 166,000 544,000

Year 3
TK 160,000 440,000 214,000 790,000

Sales
Land Line Phones Cell Phones Cell Phone Accessories Cell Service Plans

TK 102,000 130,000 106,000 4,64,000

Total Sales Direct Cost of Sales


Land Line Phones Cell Phones Cell Phone Accessories Cell Service Plans

802,000 1102,500 16,04,000 Year 1


TK 55,500 70000 85,500 290,000

Year 2
TK 90,000 190,000 106,000 394,000

Year 3
TK 90,000 210,000 200,000 450,000

Subtotal Direct Cost of Sales 501,000

780,000

950,000

6. Management Summary

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Md. Jamal will manage the daily operations of Jamal University Telephones Enterprise .

6.1 Personnel Plan


University Telephones will have a staff of five: * Manager; * Store Staff (4).

Personnel Plan

Year 1
Jamal 136,000

Year 2
140,000 306,000 5 5

Year 3
144,000 266,000

Store Staff (4) 196,000 Total People 5

Total Payroll

332,000

446,000

400,000

7. Financial Plan

The following is the financial plan for University Telephones Enterprise.

7.1 Projected Balance Sheet


The following table highlights the projected balance sheet for the next three years.

Pro Forma Balance Sheet


Year 1 Year 2 Year 3

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Assets
Current Assets Cash Inventory Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets 321,509 115875 437,384 228733 103484 332217 337,092 99921 437013

830,000 105000 725000

830,000 105000 725000

830,000 105000 725000

1162384 1057,217 1162013

Liabilities and Capital


Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Earnings Total Capital Total Liabilities and Capital Net Worth

Year 1 Year 2

Year 3

317,184 0 0 317,184 239,200 556,384

216,817 0 0 216,817 228,400 445,217

317,913 0 0 317,913 217,600 535,513

400,000 400,000 400,000 (206,000) (212,000) (226,500) 606,000 612,000 626,500 1162384 1057,217 1162013 1162384 1057,217 1162013

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7.3 Projected Profit and Loss


The following table and charts highlight the projected profit and loss for the next three year

Pro Forma Profit and Loss


Year 1
Sales Direct Cost of Sales Other Production Expenses Total Cost of Sales Gross Margin Gross Margin % 540,000 259,300 0 259300 280,700 53.15% -4.27%

Year 2
559,000 262,000 0 262000 297,000 54.87% 5.74% 504,000 266,000 0 266000 238,000 58.91% 6.45%

Year 3

Net Profit/Sales

7.4 Projected Cash Flow


The following table highlight the projected cash flow for the next three years.

Pro Forma Cash Flow


Year 1
Cash Received
Cash from Operations Cash Sales 540,000 559,000 604,000

Year 2

Year 3

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Subtotal Cash receive from Operations 540,000

559,000

604,000

Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Long-term Liabilities Principal Repayment Subtotal Cash Spent Net Cash Flow

Year 1

Year 2

Year 3

132,000 177,691 309,691

146,000 204,976 350,976

158,000 216,840 $374,840

10,800 320,491 380491

10,800 361,776 197224

10,800 385,640 218360

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 3661, Telephone Equipment, are shown for comparison.

Ratio Analysis
Sales Growth Percent of Total Assets Inventory Other Current Assets Total Current Assets Long-term Assets Year 1 Year 2 Year 3 0.00% 5.59% 12.53%

17.79% 0.00% 43.38% 56.62%

19.22% 0.00% 42.89% 57.11%

16.33% 0.00% 55.17% 44.83%

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Total Assets
Current Liabilities Long-term Liabilities

100.00% 20.44% 46.63% 67.07% 32.93%

100.00% 21.25% 35.88% 57.13% 42.87%

100.00% 18.76% 18.43% 37.19% 62.81%

Total Liabilities
Net Worth

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References
We use information for preparing such business plan from: Goggle search,, Senior brother ( Department of A & I S ) Senior brother (Department of Banking) A format for presenting business plan is given by honorable teacher

Mr. Abdullah Al Mahmud Lecturer Department of BANKING University of Dhaka

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