Business Plan

BUSINESS PLAN GLOBAL MUSHROOM COMPANY LTD. -“quality first” MS in Agricultural Economics(Agribusiness and Marketing) MD. TAUHIDUL ISLAM LEVEL-4; SEMESTER-1 ID. NO. : 09 AEAM JD 03M REG. NO. :31636 Group : C DEPT. of AGRIBUSINESS & MARKETING BANGLADESH AGRICULTURAL UNIVERSITY. MYMENSINGH BUSINESS PLAN SECTION 1: THE BUSINESS PROFILE Description of My Business Our product is Mushroom. We will produce, package and set price in our own farm. Targeted Market and Customers Our customers will be different departmental store, hotels and restaurants. Our product is new arrival in Bangladesh and it is highly nutritious. Growth Trends In This Business

Yes, the market for our products is growing, because our product has increasing demand to the people, specially to the educated people. Pricing Power The unique qualities of our product are:- -nutritious -nontoxic -it is suitable for all classes of people, especially for diabetic patient and educated people. SECTION 2: THE VISION AND THE PEOPLE We are passionately committed of our new business to provide highly qualified mushroom to all classes of people specially for highly educated people. THE PEOPLE Work Experience Related to My Intended Business We got training from reputed mushroom cultivation training centre.

Again we will appoint a mushroom cultivation specialist. Personal Background and Education Credentials We are expected to complete graduation this year from Bangladesh Agricultural University, Mymensingh . SECTION 3: COMMUNICATIONS Computer and Communications Tools Resource Requirements: Communications -Telephone/ mobile phone Tk. 10000/year -Advertisement Tk. 80000/year -Leaflet Tk. 5000/year -Internet Tk. 14000/year Telephones Telephone/mobile phone Tk. 10000/year

Computers One computer and one printer Tk. 25,000 Computer accessories Tk. 5000 Internet Internet Tk. 14,000/year SECTION 4: ORGANIZATION Business Organization We want to form a JOINTSTOCK business organization. It is our intention to grow our company into a large farm throughout the country. Professional Consultants I feel it is important that my team of professional advisors be in place before I start in business. Here is a list of these professionals: 1. Lawyer-A. T. M. Golam Hossain 2. Accountant: Rakibul Hasan 3. Insurance Agent: Real Insurance Company 4 .

Banker: Abdul Bari 5. Trainer: Aktaruzzaman Licenses 1. Trade license SECTION 5: LICENSES, PERMITS AND BUSINESS NAMES Due Diligence Procedures for Licenses, Permits and Business Names: Licenses: State: Trade license Slogan: Indicate your slogan intentions if any exist Our slogan is “quality first”. SECTION 6: INSURANCE Insurance (Session 6): List the form of insurance coverage including cost are anticipated. We plan to use the services of Real Insurance Company, as our insurance agent. SECTION 7: PREMISES Location Criteria •space requirements : 71 decimal •future requirements : 33 decimal

SECTION 8: ACCOUNTING AND CASH FLOW Accounting COMPARATIVE ANALYSIS OF BALANCE SHEET Particulars Year20082009201020112012 Assets: Cash 50,000 60,000 75,000 90,000 1,00,000 Land3,22,7274,02,7274,82,7275,67,2725,67,272 Building(office room , store house & warehouse)4,00,0003,95,0003,90,0003,85,0003,80,000 Less: depreciation5,0005,0005,0005,0005,000 3,95,0003,90,0003,85,0003,80,0003,75,000 Computer , printer30,00028,00026,00024,00022,000 Less: depreciation2,0002,0002,0002,0002,000 28,00026,00024,00022,00020,000 Hut4,62,9905,78,7376,94,4846,94,4846,94,484

Equipment(rack & sprayer)65,20080,20097,80085,80073,800 Less: depreciation8,0009,50012,00012,00012,000 57,20070,70085,80073,80061,800 Vehicles(car & van)2,10,0001,99,0001,88,0001,77,0001,66,000 Less: depreciation11,00011,00011,00011,00011,000 1,99,0001,88,0001,77,0001,66,0001,55,000 Value of life insurance20,00020,00020,00020,00020,000 Raw materials inventories2,400,00030,00,00036,00,00039,60,00043,20,000 Supplies1,00,0001,20,0001,50,0001,80,0002,00,000 Total Assets40,34,91748,56,16456,94,01161,53,55665,13,556 Liabilities and Owners equity Liabilities : Bank loan20,00,00020,00,00015,00,00010,00,0008,00,000

Accounts payable1,00,9172,56,1646,94,0116,53,55611,13,556 Owners equity15,00,00020,00,00025,00,00030,00,00030,00,000 Retain earning4,34,0006,00,00010,00,00015,00,00016,00,000 Total Liabilities and Owners Equity40,34,91748,56,16456,94,01161,53,55665,13,556 Particulars Year20082009201020112012 Revenue: Gross sales48,00,00063,00,0007920,0008640,0009180,000 Less: sales return and allowance1,00,0002,00,000100,00025,00025,000 Net sales47,00,00061,00,0007820,0008615,0009155,000 Cost of goods sold: Inventory01,00,000200,000250,000250,000 Purchase24,00,00030,00,0003600,0003960,0004320,000 Less: purchase return 50,00075,00080,000100,000100,000

Net cost purchase2350,0002925,0003520,000386,0004220,000 Cost of goods available for sale 2350,0003025,0003720,0004110,0004470,000 Less: inventory1,00,000200,000250,000250,000250,000 Cost of goods sold22,50,0002825,0003470,0003860,0004220,000 Gross margin24,50,0003275,0004350,0004755,0004935,000 Operating expenses:, Advertisement cost80,000150,000100,00050,00025,000 Payroll4,68,000500,000560,000600,000600,000 Expense in license9,000 Transportation expenses1,50,000180,000280,000330,000330,000 Repairing and maintenance cost50,00060,00070,00070,00070,000 Insurance (fire)20,00020,00020,00020,00020,000

Telephone and internet24,00030,00035,00035,00035,000 Other expenses13,60020,00025,00050,00050,000 Cumulative depreciation27,50027,50030,00030,00030,000 Total operating expenses8,42,100987,5001120,0001185,0001160,000 Net earnings16,07,9002287,5003230,0003570,0003775,000 Less :interest expense2,40,000240,000180,000120,00096,000 Net profit / loss13,67,9002047,5003049,9703450,0003679,000 Growth(profit/sales*100)29. 1%33. 57%39%40. 05%40. 19% COMPAR ATIVE ANALYSIS OF INCOME STATEMENT Cash Flow Planning Checklist (Tk. /year) operating expenses: Advertisement cost80,000 Payroll468,000

Expense in license9,000 Transportation expenses150,000

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Repairing and maintenance cost50,000 Insurance (fire)20,000/ Telephone and internet24,000 Other expenses13,600 Cumulative depreciation27,500 Total operating expenses 842,100 Capital investment1500000 Estimated sales4800000 Analysis of Costs Fixed costs: Land, building, equipment, hut, computer, depreciation, managers salaries, insurance, license cost, interest expense and vehicles. Variable costs: labor cost, Straw, Spawn, formalin, repair and maintenance cost and advertisement cost.

Product cost: Straw, Spawn, formalin packaging and formalin. Delivery cost: Fuel, vehicles and drivers’ salaries . Internal Controls We will always supervise the overall activities in strong hand. If we get any dishonesty or carelessness in any kinds of business activities then we take necessary steps for controlling them properly. We will give rewards and incentives for appreciating the good works and punishments for skulking. We will keep record of every transaction and also we will try to ensure friendly environment for all employees in the company. SECTION 10: E-COMMERCE E-Commerce Plans

We plan to build and install a registered website name www. glbmashroom. com . This site will contain attractive advertisement on our product. Buyers will get update information and they can merchandise via this website. E-Commerce Budgeting 1. Rent for domain – Tk. 1,000/year E-Commerce Competition We will provide more discount comparatively our best competitors. We will send our e-mail to our expected buyers containing our product advertisement. SECTION 11: ACQUISITIONS Due Diligence Procedures for Acquisitions # Our consulting team: Lawyer, accountant, banker, trainer, etc. # How we plan to authenticate-

By providing sales receipt. # Sellers records to be inspected: Financial statements, sales backlog, cash deposit records, utility bills, accounts payable and receivable, financial comparisons of similar businesses, etc. # Appraisals, as appropriate. Yes. # Market conditions. Oligopoly market. # Value of goodwill exists. # Method of purchase: stock, assets, etc SECTION 12: MARKETING Marketing Plan We will personally contact with the buyers. We give fresh styling, quality product price incentive to them. We provide the transport facilities and arrange Mushroom food product festival every year to create more concentration of buyers.

Advertising and Promotion Plans Plans Budget(Tk. /year) Internet 10,000 Television 40,000 Newspaper 20,000 Poster 5,000 leaflet 5,000 Training Policies We will hire a honest, skill and smart trainer for increasing the efficiency of our sales manager for specific period of time. The Competition BRAC is our strongest competitor, because they have -large overhead structure -large amount of capital -strong brand recognition But we intend to compete with the BRAC by the following ways- -attractive packaging price incentive -Mushroom food product festival -quality maintain -advertising -transportation facilities. How I Plan to Take Advantage of Competitors Weak Points The shortcomings of our competitors are as follows -slow motive to change product quality -price of product relatively higher than us -insufficient supply We plan to overcome their leadership with fresh new designs, artwork packaging and to provide at a lower price. SECTION 13: GROWTH PROGRAM Expansion Sources of financing :Bank and own capital Cash flow: Mushroom sale(cash inflow) Input purchase(cash outflow)

Benefit package and policies: Those who are regular customer we sell the product to them at a lower price and sometime we will offer discount for product. Handling Major Problems Adverse conditions Response 1. Reduction in sales -sales promotion 2. Fall in price -reduce supply 3. Rise in input price -increase in output price How and where we reduce costs- -In advertising(in case of leaflet and postering ) -transportation cost will reduce when the company acquired goodwill to all kinds of customers.

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