Assignment on Fundamental of Good Feasibility Plan - Assignment Point
Assignment on  Fundamental of Good Feasibility Plan
Subject: Marketing | Topics:

Executive Summary : A good feasibility plan will identify the essential information needed by investors and bankers to make decisions about equity financing or loans .It will be succinct, yet through. It will be clearly written and include essential details with supporting documentation without the tedious attention to detailed research that might characterize a fully developed business plan in a major company. The feasibility plan is meant to be an initial effort to show that a business idea can be realized and to give reason why it will succeed. The plan will describe the entrepreneurial team and the crucial assumptions underpinning projections for success.

Venture Defined:

Here we will produce strawberry commercially

Product and service                

Here product is only one that is strawberry

Market characteristics:

Market size is in some specific area in our country like Banani, Golshan Uttara, Dhanmondy etc. and also all over the country.

 Entrepreneurial Team:

 Here there are three enterpenure , they are Suma, Kawser and Shohag. This is a partnership business so in this partner there is one position of managing partner & others are only partners.

 Financial Summary:   

Fixed cost                                        :  1,010,5524

Sales                                                  :  5, 040, 0000

Cost of raw materials                  :  1, 63, 50,000

Wages and salary                         ; 55, 20,000

Depreciation                                  ; 6.75.000

Utility cost                                       ; 2, 01,600

Cost of goods sold                                    : 2, 08, 49,600

Net Profit                                         : 1,49,87,236

 

2. Business Concept:

I am always tried to set up new business & that is totally exceptional from others. I find out strawberry business and we think it is totally innovative& new idea to the market in our perspective. Still now most of the people in our country is not familiar with strawberry but have lost of demand in some specific area and also can get more profit by exporting it. The demand of strawberry in Bangladesh is increasing day by day and from that realization we start it. And I’ll commercially produce it.

3. Product and service                       

       Here product is only one that is strawberry

4. Market Research and analysis:

 Identify Potential customers:

Some specific city and area in our country and also export to others county

Evaluate Market :

Strawberries are growing in many areas of Bangladesh has became very popular. Strawberry were not grow in large quantities few years break but with gradual increase in demand for table varieties as well as from processing unit, number of farmers have now taken up this activity. Some progressive formers should undertaken strawberry processing as a measure of forward integration with assured supply of good quality. Strawberries, quality of products would be very good and the competitive edge would also go up.

The demand of strawberry in the domestic & international market is very high.

Present and projected demand

Country: Bangladesh

Year201020112012
Ton35100200

       Analyze competitor

This business is totally new idea in our country nevertheless there are very few competitor here.

       Describe Assumption:

Pricing strategy: This product is totally new in the market. But it is very much important for the quality of product. And the price will vary on the quality of the product & customer demand.

Distribution channel: Distribution channels are various-

Super shops (upper class and upper middle class)Agora(4 outlets),Shopno(among 41 outlets ,we will target only 5-6), Lavender(1 outlet), Nandan(4 outlets)Fruit Market of Bannai and Gulshan

5. The Market Plan:

The market plan describes an enterprenure’s intended strategy. It build on market research and distinct characteristics of the business to explain how the venture will succeed.

 Product or Service:  Strawberry

 Pricing system

The price will vary on the quality of the product & customer demand.

 Promotional Mix:

We advertise about our product by using print and electronic media for promotion our product,

 Distribution Channels: Distribution channels are various

Market Leadership:

market leadership is to develop by sales training , commission structure, recruitment and sales management.

7. Entrepreneurial Team:

The business of “Strawberry firm is a partnership business. This business is totally new & innovative for us. So in the management we all partners are taking our shares by following the chart; in the partnership business there is one position of managing partner & others are only partners.

Name of the partners

Percent (%) of share holdings

Status

Mst Suma Akter

40%

Managing partner

Mr. Golam Mostafa

30%

Partner

Mr. Kawser Ahmed

20%

Partner

 enterprenur

9. Financial Documentation

Fixed Cost of the Business:

Items

Local Cost

Foreign Cost

Total

Land(50 bigha@1lac, 70% advance payment)

35,00,000

35,00,000

Building

18,00,000

18,00,000

Imported Machinery

17,50,000

17,50,000

Imported Duty

1,57,500

1,57,500

Installation Fee

30,000

30,000

IDCP

62,969

62,969

Local Machinery

12,00,000

12,00,000

Vehicles

11,50,000

11,50,000

Computer

80,000

80,000

Office Equipment & Furniture

2,20,000

2,20,000

Deposit to PDB

30,000

30,000

Pre-operating Expense

25,000

25,000

Consultancy Fee (1% of the Project Cost)

1,00,055

1,00,055

Initial Investment of the Business:

1,010,5524

Sales Revenue

ItemQuantitySelling PriceTotal Amount
Strawberry100( ton)5040005,040,0000

Cost of Raw material:

Item

Quantity

Unit cost

Total cost

Plant

2,50,000

38

95,00,000

Fertilizer

—-

60,00,00

60,00’000

Chemical

—-

8,00,000

8,00,000

Others Equipment

—-

50,000

50,000

Total

1,63,50000

Wages & salaries:

Particular

Quantity

Salary/Monthly

Salary/Yearly

Firm Manager

1

20,000

20,000

Supervisor

3

10,000

3,60,000

Machine Operator

2

90,000

2,16,000

Labor

35

6,000

25,20,000

Driver

2

7,000

1,68,000

Peon

2

4,000

96,000

Security Guard

2

7,000

1,68,000

Total

35,48,000

Administrative Expense:

Particular

Quantity

Salary/Monthly

Salary/Yearly

Managing Director

1

35,000

4,20,000

Marketing Executive

2

14,000

3,36,000

Sales Executive

5

12,000

7,20,000

Accountant

1

15,000

1,80,000

Research & Development

1

13,000

1,56,000

Computer Operator

1

12,000

1,44,000

Total

19,56,000

Depreciation Schedule:

Item

Value

Percent (%) Rate

Total Amount

Land

35,00,000

0%

0

Building

18,00,000

5%

90,000

Machineries (Foreign + Local)

29,50,000

10%

2,95,000

Vehicle

11,50,000

20%

2,30,000

Furniture & office Equipment

3,00,000

20%

60,000

Total

6,75,000

Utility Cost:

Item

Cost/Monthly

Cost/Yearly

Electricity Bill

5,000

60,000

Telephone Bill

4,000

48,000

Internet Bill

1,800

21,600

Fuel Cost

6,000

72,000

Total

201600

Cost of Goods Sold:

Item

Total Amount

Raw material

1,63,50,000

Wages & salaries

35,48,000

Depreciation

6,75,000

Utility Cost

201600

Advertisement Cost (Assumption Expense)

75000

Total

2,08,49,600

Financial Expense & Installation:

Item

Value

Percent (%)/Year

Total Amount

Interest

3820352

13%

4,96,646

Installment (Repay time)

3820352

5

7640704

Total

12607164

 

Earning Forecast:

Item

Amount

Sales Revenue

5,040,0000

(-) Cost of goods sold

2,08,49,600

Gross profit

29550400

(-) Administrative expense

19,56,000

Profit

27594400

(-) Financial expense & installation

12607164

Net profit before tax

14987236

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