MGT 368

Entrepreneurship

SPRING 2015

FINAL REPORT
BUSINESS PLAN MID LEVEL RETAILERS IN THE WOOD &
FURNITURE INDUSTRY

Company Name Got Wood

Submitted to:
Mr. Maruf Ibne Wali
Lecturer
The School of Business
North South University

Submitted by:

Sabreen Sayeed Haider

Maruf Abedin
Arefin Taher
Oli Ullah Chowdhury
Khalifun Nahar Moutusy

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111
122
122
093

0637
0167
1016
0357
0731

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530
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530

Executive Summary

This report is based in the Supply chain of the Wood and Furniture industry in Bangladesh. We have
chosen to focus on the retail part of the supply chain and thus our company is named GOT WOOD.
We have carried out a complete and detailed business analysis in order to produce this business plan. Got
Wood is a retail store that brings to the customers high quality, durable and trendy furniture at a great
price. We also provide customization facilities to our customers. The customized orders that are taken are
made by our very own carpenters who use the wooden boards that we also sell as retailers. Our target
groups include other small furniture retailers and individual customers who purchase for final use.
We have provided the business canvas model, that covers the various aspects of the business and provides
an overview of the entire business plan. Further we have also carried out many analysis that were stated
as requirement of the report. Through our research and analysis we have recognized that this business will
prove to be sustainable and profitable if adaptation is embraced by the firm.
Further we follow international ethical standards. We strongly believe in education for children and thus
is it our social drive that covers our CSR activities.
We also import furniture from other countries to keep up with the trend for foreign furniture.

Contents
Business Canvas Model.............................................................................................. 3
Pricing Model.............................................................................................................. 5
Social Goal.................................................................................................................. 5
Sustainability.............................................................................................................. 6
Eco- friendly............................................................................................................... 6
Ethical........................................................................................................................ 6
PESTLE Analysis:......................................................................................................... 8
Porters 5 forces:........................................................................................................ 9
SWOT analysis:......................................................................................................... 11
Stakeholder analysis:............................................................................................... 12
A. Description of companys operation:....................................................................15
Customer service:.................................................................................................... 16
Training program:..................................................................................................... 16
Inventory and Stock Management............................................................................16
B. Flow of orders for goods and/or services:.............................................................17
C. Technology utilization:......................................................................................... 17
Evaluation of weaknesses:....................................................................................... 24
New Technologies:.................................................................................................... 25
Contingency Plan:.......................................................................................................... 25

Introduction
Got Wood is a retail furniture store that provides their customers with high quality, trendy furniture at a
great price. The main retail outlet of Got Wood is located in Savar on the outskirts of Dhaka. The Head
office of Got Wood is located at Elephant road which is the hub of all large scale transactions that will
cater to the needs of our other retail customers.
Got wood is a mid-level retail store in the entire supply chain of the wood industry. We work as
intermediaries that move the products from the manufacturers to the consumers. We however also provide
customization facilities which requires us to make the furniture from the wooden boards that we receive
from manufacturers.
After carrying our various cost and financial analysis we have recognized that a total of 19,50,000 BDT is
the required start up cost of the business. Out of which 3,50,000 BDT will be partners contribution and
16,00,000 BDT will be raised through loans, equity and debts.

Business Model
Business Canvas Model
Customer Segments: Since we are a retail company, our target segments include individual customers
purchasing for direct use and other small retail businesses. We target consumers from Socio Economic
Class A & B.
Customer Relationships: Customer relationship is vital for our business to ensure repeat purchase. We will
be maintaining two separate databases for the two customer groups. Other retail companies will be kept
on continuous tab about the trade discounts and discounts on bulk purchase. On the other hand individual
customers purchasing for final use will be kept on tab about the seasonal sales and discount offers.
Further after purchase augmented services will be provided such as free repair if damage caused in the
first 6 months. Employees who will be in direct contact with the customers will be trained to ensure
optimum service and enable building customer relationship

Channels: Our products will be available at our outlets and in other small retail stores that will sell our
products. Our main and largest outlet will be in Savar, Dhaka and we will have an office at Elephant road
inside Dhaka where orders will be taken and product will be made.
Value Proposition: We are providing our customers with excellent quality furniture which are both locally
made and imported at a reasonable price. We are providing premium products to our customers at a
comparatively low price. They get good quality products that are very durable at a great price! We also
provide the customization facility.
Key Activities: our key activities include

Taking orders from customers in Dhaka and at Savar

Ensuring smooth supply and availability of various product designs
Making the order taken from customers (Customized option)
Carrying out sales transactions
Delivering products to customers
Providing augmented services
Transporting products to all of our retail outlets
Carrying out promotion activities online and otherwise
Keeping a tab of good that are to be imported

Key Resources include:

Wood and wooden board (as part of raw materials)

Equipment
Human Resource (Carpenters, sales employee, delivery men, accountants, etc)
Nuts, bolts, polishing requirements
Office, retail outlets, etc
Office equipment and supplies
Power supply

Key Partners include:

Wood and Wooden board suppliers

Equipment suppliers
Complete furniture suppliers
Import agents
Government
Customers

Distribution channel participants

Intermediaries
Employees sales, production, marketing

Cost: From our financial analysis we have recognized that cash flow from operations will approximately
sum up to be 400,000 BDT.

Revenue: Our revenue source is from the sale of products from out outlets and customized design orders
taken.

Pricing Model
Since Got Wood is positioned as a premium retail supplier of finished furniture and our target customers
being members of the Socio economic class A & B, our prices will be premium prices too.. however,
compared to other premium competitors our prices will be low. We aim to provide high quality, durable,
and even customized furniture at a low price to the market.

Social Goal
Thinking socially we aim to reduce unemployment by providing employment opportunities to skilled and
unskilled labor. In our entire business chain we require many individuals to meet our daily operations
need. Further we also believe in youth empowerment, hence we will be donating part of our profits for the
education of underprivileged children. We will also provide for the education of the children of our
employees.
Financial Sustainability
We believe that our business is financially sustainable since the demand for wooden furniture has been
increasing over the past few years. Our cash flows discussed in the financial section of the report will
further transparently show the expected cash flows over the first five years thus displaying the financial
sustainability.

Sustainability
In order to ensure sustainability we will look into adaptability. Our designs and products other than being
customized will also be very updated with the new trends. Further our main outlet is at Savar on the
outskirts of Dhaka, since it is a much less saturated market than Dhaka is. This gives us the chance to
effectively exploit the market and strengthen our position in the market. Over time when savar market
will begin getting more saturated we will be able to expand to further markets thus ensuring our
sustainability.

Eco- friendly
Since the environment is a major global concern, we look into making our products as environmentally
friendly as possible. Our carpenters will be trained to reduce wastage or raw materials (Wood & wooden
boards) as much as possible, thus also decreasing the cost. Further we will indulged in recycling and
reusing wood. We also will use environment friendly wooden boards that are much more durable than the
plain wooden chip board.

Ethical
We will ensure ethical practices by passing ethical policies that have to be followed by employees within
the organization and while dealing with customers. Further we will maintain a well defined ethical
standard in terms of employee treatment and wage. We will not skip tax as over the long run it proves to
be harmful to the business image.

POLITICAL

There is quite a large tariff on the import of wood which varies from 10 to 80% of
the price of the wood. This puts quite a barrier on the price competitiveness of the
furniture itself. However as the tariff is put on all the imported wood this puts the

producers at a level playing ground, which means all are competing at similar cost.
Tax on the manufacturers and retailers are quite reasonable to make decent profits.

ECONOMIC

Growth rate in the wood industry is around 20% for the last five years. Inflation rate
is about 12% in Bangladesh. Labor cost is cheap in Bangladesh compared to other
countries and compared to china it is actually very feasible as the cost is almost one
third of that in china. Business cycle of the wood industry is in its growth stage.
Large scale manufacturing only started properly from the 90s and the demand for
furniture is only increasing with the growth of the country itself.

SOCIAL

Population of Bangladesh is very young as the average age is only somewhere

around thirty. So its a growing population and a population that is increasing in
education as well means there will be further improvement in the income
distribution in the coming years. This in turn will increase the demand for all
household items including furniture.

TECHNOLOGY

Bangladesh is comparatively lagging behind in the use of high tech machinery to

produce quality furniture that can compete with others. There is still a definite
waste of wood in all productions when it comes to the process of carving the wood
which is not yet really solved. Designs need to be improved as well as they have not
been really been upgraded for quite some time in most of the large scale
manufacturers and small investments do not have the know how to come up with
new designs. Labor skills are also quite unrefined as there are not many training
centers and most of the carpenters are apprentice of seniors and learn the work on
first hand basis. Needless to say they have much basic education.

Business Environment Analysis

PESTLE Analysis:
POLITICAL
There is quite a large tariff on the import of wood which varies from 10 to 80% of the price of the wood.
This puts quite a barrier on the price competitiveness of the furniture itself. However as the tariff is put on
all the imported wood this puts the producers at a level playing ground, which means all are competing at
similar cost. Tax on the manufacturers and retailers are quite reasonable to make decent profits.

ECONOMIC
Growth rate in the wood industry is around 20% for the last five years. Inflation rate is about 12% in
Bangladesh. Labor cost is cheap in Bangladesh compared to other countries and compared to china it is
actually very feasible as the cost is almost one third of that in china. Business cycle of the wood industry
is in its growth stage. Large scale manufacturing only started properly from the 90s and the demand for
furniture is only increasing with the growth of the country itself.

SOCIAL
Population of Bangladesh is very young as the average age is only somewhere around thirty. So its a
growing population and a population that is increasing in education as well means there will be further
improvement in the income distribution in the coming years. This in turn will increase the demand for all
household items including furniture.

TECHNOLOGY
Bangladesh is comparatively lagging behind in the use of high tech machinery to produce quality
furniture that can compete with others. There is still a definite waste of wood in all productions when it

comes to the process of carving the wood which is not yet really solved. Designs need to be improved as
well as they have not been really been upgraded for quite some time in most of the large scale
manufacturers and small investments do not have the know how to come up with new designs. Labor
skills are also quite unrefined as there are not many training centers and most of the carpenters are
LEGAL
Ironically there is not much pressure in case of environmental laws in the furniture industry as most of the
wood is imported from Myanmar and Africa. there is however a lack of labor laws in the industry as of
safety standards or overtime. Only a few general labor laws are practiced and then only in the registered
big firms only.

ENVIRONMENTAL
As the wood is mostly imported there is very less impact on the environment. However there is still a lot
of wastage that should be channeled to better use.

Porters 5 forces:
New entrants:
Threat of new entry is high in the small scale producers, because investment is very low for that group.
But in case of large scale manufacturing it is quite high as the manufacturing machinery is quite
expensive and resourcing of raw materials is difficult. So there is only a limited number of large scale
producers. But there are very few entrants in the retail market for the wood industry. Most large scale
producers are themselves the retailers.

Suppliers:

Working on the retail section there will be some problem with the big producers of furniture but pricing
should be quite competitive from the small scale manufacturers. This business already has a forward
integration so there is already a threat to the business.

Buyers:
We are focusing on the end market of the wood industry so our buyers are direct customer and its a b2c
business. Customer market is quite progressive in this industry and the growth of sectors like developer
business and ship building puts in new segments to the customer demography. There is very less chance
of backward integration from the customers so there is not much threat from it. Our customer locations
will cover the whole country as we are going on a national level.

Substitute:
Our costing should be same or lower than the price of the existing companies that are producing and
retailing themselves. We will occur less costs due to easy monitoring process from the head office and
sourcing from the local producers.
The large companies produce a general line of designs which we will retail but in addition we provide
customization of design to cater to customers which is actually not provided by any of the large
producers. And the small time makers charge more for customization and cannot maintain proper quality
so we have a service that is hard to copy or substitute.

Industry competitors:
Industry is very much competitive due to the similarity of the product and designs. Exit barriers are high
if there is already a large investment in the manufacturing sector. So once the market entry in made it is
seldom that a company exits. There are very few well-established brands but the market is saturated in
those brands. Cost efficiency is high for the existing large firms because of the economies of scale. So
entry in both manufacturing and retail is difficult to maintain with a medium amount of investment. So
the market is determined by the large quantity industrialized producers or the cottage producers.

SWOT analysis:
Strengths:
Serving to various corners of the country will be our main strength coupled with the management team
and the variety of brands of products we will be selling at a low price.
The concept of retail chain in the furniture industry is rarely thought of so there are very few competitors
in that specific market.

Weakness:
One weakness will be that the existing suppliers will most likely have their own outlets that we will be
competing against.
Supply chain management can be difficult, as we will need warehouses that might increase cost to a
disadvantage.

Opportunities:
The customization of furniture will be a new market that we can work on. Online designs can be received
from customers and it can be an order based supply.

Threats:
Marketing furniture in rural areas is difficult as we will be competing with the small manufacturers. We
have to find a way to sell machine produced furniture to have price bargains and the customer.

Stakeholder analysis:
Banks, investors and shareholders:

As the business will be start up with bank investments or investor funding there is always a need to
update them on the current situation of the business. Shares will not be issued in the beginning, they will
be published in a later time once the business is up and running and needs a further investment.

Customers:
Customer interaction is vital for this business as the motive has to be diverting loyal customers from the
existing sellers to us. After sales services has to be provided with optimum care. Long term relationship is
important in this business as customers do go for repeat orders. Our sales team will be most hospital in
handling customers and building long term relationships.
Suppliers:
Outmost communication has to be maintained with the suppliers to ensure just in time supply of goods.
Negotiations need to be well handled in maintaining a profit incentive for both parties. As said before big
manufacturers may be difficult to negotiate with as they have quite an upper hand but it can be bypassed
by diplomatic solutions.

Employees:
There will be limited number of employees as this is a retail chain. So it is easier to oversee the team and
come to quick solutions in case of problems as communication should be high. We will try to hire
employees in the districts that we build our chain shops as this will give us better management of the
showrooms and reduced cost of housing. There will be allocated training period for all sales men that they
must pass before getting in the job.

Description of ventures
a. Product:

We are concentrating on the retail section of the supply chain management in the furniture business.
Our product is any type of furniture. Our mission is providing quality products to the customers.
b. Service(s)
Our services include customized furniture that we will provide for customers within an allocated
time frame. Other services that we will provide is home delivery and after sales services such as
maintenance of wooden items and resale of old furniture.
c. Size of business
We will operate in medium sized outlets, which will be rent based. So our cost should remain less
with a maximum of four staff in each outlet. These staff will be trained in sales, management and
also software operation for the custom design creation. However we plan to open chain shop all over
the country in the future so size of the venture will increase drastically in the future.
d. Office equipment and personnel
Head office will be situated in Dhaka which will correspond all over the country with the outlets.
Our initial office space needed is only moderate as we are only starting up. And to save costs we ill
rent our office space. Initial office will start with only the entrepreneurs working full time, we will
hire part timers from different universities at first with a scope for full time if their work is good.
There is only need for a few computers and tables to operate the business in initial stage. We will be
making most of the supply from the suppliers through the head office to the outlets. There will be
need of expansion in the future as the business grows.
e. Background of entrepreneurs.
Our entrepreneurs are all graduates of North South University. Two of the heads have job experience
from different furniture manufacturing companies and have vast knowledge in the supply chain
management in the wood industry. Another one of them is a second-generation businessman in this
sector. We also have a marketing and innovation expert in the team.

Retail Operation or Service:

From whom will merchandise be purchased?
Ours is a retail service so we have to first purchase the goods from the manufacturers. We will
target high-end manufacturers like Otobi, Hatil, Aktar and we will import some of the furniture

that meets our quality. This is to meet our mass production to supply or retail chains. Our other
products that are custom designed will be made by local suppliers who are small time
manufacturers or cottage producers. These type of suppliers are available in various places in and
around Dhaka city and also the rest of the urban and suburban areas of Bangladesh.
How will the inventory control system operate?
Each outlet will have its own separate inventory control system that is computer operated. Here
data is collected from time to time and reports are sent to the head office. Inventory will mostly
be of the displayed products as storage space will be limited as explained in the next point.
What are the storage needs of the venture and how will they is promoted?
We will try not to keep many warehouses as it will increase cost. We will manage by just in time
supply for the mass produced designs. Supply will be made from the suppliers warehouse to the
customers house. This service has to be well thought of in terms of managing the procedure in
real life scenarios. In cases where this will be not possible, as in outlets that are far from the
suppliers, we will rent warehouses. Also we will not need warehouse in supplying the custom
made items as the goods will be directly sent from their workshop to customer homes.
How will the goods flow to the customer?
Goods will be delivered to customers by paid delivery services. We have had meetings with some
local delivery service companies that operate in the main cities and for delivery in the sub urban
and rural areas we will use rent-based approach. There will be some delivery charge included in
the sale of the goods.
Chronologically, what are the steps involved in a business transaction?
In case of general item sale:
1 sale is made
2 customer leaves home address
3 order-sheet is sent to factory or nearest warehouse of the supplier
4 the specific item is delivered from there to the customers house.
In case of customized item sale:
1
2
3
4

customer chooses design and pays half to begin order

design is sent to carpenters with a deadline given
after it is finished the good is sent from their workshop directly to the customers house
and rest of the payment is received.

What are the technology utilization requirements to service customers effectively?

Customers can effectively design on their own in our website and send order online. They can check their
update on delivery of their goods here. They can also check the progress of their order on searching for
their job number from the websites.

Operational Plan
A. Description of companys operation:
Every company has to operate their business by their own process.it basically shows that how a company
runs their business by daily activities. Our company will do wood business and we will also have formula
by that we can operate our daily operations. As we know our companys name will be wood wanger and
our product is furniture.so main operations activities include drying, waxing, sanding, finishing and other
activities that have to maintain all the time if we want to run successfully our business. Activities are
described under here which are very important.
Store Environment:
Store environment is very important fact.it should be positive to the customers. If they like the
environment they will be impressed ad can enjoy their shopping. We offer a good environment which will
give good attraction to our customer and they will come again to visit our store.
The store should have a good looking with well space.
All the products should be arrange in a proper place and maintain serial. Also have to make sure
that products should not fall from the space or shelves.
The store should have a good smell which will be attract the customers
Good sells person are need to gain customer attraction.
Have to make a space where customer will leave their accessories before entering the store.

Customer service:
Well come customer with happy face. Smile is needed to gain customers attraction.
Help them to choosing good products and give details of every product. At the same time
catalogue can be provided foe selecting.
As retailer it is necessary to remind that they must not over sell their products to customers. Let
them decide their own.

Training program:
The store manager must have frequent training program.it is necessary for the sales representatives,
cashier and other team members to motivate them from time to time.it could also increase the sell.

Inventory and Stock Management

The retailer must ensure that the product should not be out of stock. If it is then they have
to restore them.
Every retail chain should have its own warehouse to stock the merchandise.
Every week need to check inventory and stock to maintain it properly if there is a problem
with stock immediately correction or investigations is needed.

B. Flow of orders for goods and/or services:

First customer needs to give us an order from our products list which is available in our catalogue, online
and webpages. Then the order will process in to our database and we will receive the order. Then we will

fix the order that the customer asked for in online or our store. Then we will pick the order from the
warehouse. We will do some finishing work on it then Deliver the goods to the customer. When customer
receives the order then he will pay the bill by online or what process they want. Thats how we will
deliver the goods to our final customer or end customer. This is the final process of how an order and
delivery will be given.

C. Technology utilization:
Technology is the most important fact for any business.it is a crucial weapon for a business. Most of the
businesses in modern time are succeed because of advance technology. Any company can survive if they
have proper utilization as a furniture company we will also need some advance technology to show the
potential of our products. We must utilize technology for our business. Under the below technologies are
given which will be most important to utilize for survive in modern time.
Machineries:
Good and heavy machineries are needed to make furniture from wood.at present there are different kinds
of machineries are available which prices are different. Machineries should be advance in technology. We
have to make lot of furniture as soon as possible to serve the customers. So we will buy the machineries
which are works fast. Price are also varies.it depends on our budget.

Internet:
The world cant run without internet. The whole world depends on internet. We will have Wi-Fi
technology in our store so when customer will come they can use Wi-Fi free and also can compare prices
with others.

Online:

Our products will be available in online.so customer can pre order the furniture from online. They can
also review our newly arrived products. They can also comment about our products which they like or
not.
Payment:
We will receive credit cards, BKash etc. customer can also pay through online. Online and mobile
payment is very popular in this time.so we will make sure that our customer will get this service.
Websites:
We will have our own website, Facebook pages. Facebook is very popular in our country so we will have
good business if we open a group of our products where we will give pictures of our products.
Transportation:
We will delivery our products by our companies vehicles.it will charge for free. Customer dont need to
take tension we will take liabilities and delivery the products in time. Our vehicle service will be fast in
chnology.

Market Plan:
A. Product:
Our main target is we will provide best services and products to our customer. Our product will be
different than other competitors.it will be premium products. Our important fact is that we will ensure that
quality of our product will be solid as the customer expected. We will always try to give innovative and
modern design to our customer. All the furniture will be different in design and products will be updated
in every specific period.
B. Price:

Our pricing will be fixed and we will try to give them our premium quality furniture at a moderate cost so
middle class people can also buy our products. We will give discount when our new products will come.
Then almost every kind of people who have lower income can buy our products at a cheaper rate.
We will also offer some combo sets of furniture. Where customer can choose which set of furniture they
want. We will make sets by offering full room furniture. We will also make some category of combo sets.
C. Promotion:
We are doing this business include having five partners. So, our budget is not a lower at all.so we have to
promote our products if we want to come in a good position. We have spent good amount of money for
this promotion. For promotion we can use different media which is given under below:

Newspaper:

One of the most common media in our country. Almost every kind of people read newspaper.it is cheap
but content lots of news.so we can give our advertisement in newspaper.it could be front page or last
page. But to give advertisement in newspaper on our expectation we have to give extra money to News
Company. Because if we do this than every people will know about our product.

Online:

Now a day without internet no one can survive. Especially new generation is crazy about internet.so it
makes sense that we give our advertisement to the online.so when people will use internet they can see
our product advertisement. We have to give advertisement in few pages where people visit lot of time like
Facebook, twitter etc. social sites and the web sites where people visit for buy and sell.

Radio:

Most of people like to listen radio especially when they are in home and long drive so we will give our
advertisement on there so it will also help to promote our product and giving advertisement in radio is not
very expensive.

Television:

It is a very expensive media and could be our main turning point. Every person watch television.at this
modern time lot of competitors are giving advertisement in television during break of programme.so we

already have lot of competitor and we have to make a unique advertisement otherwise no one will watch
our promotion. We will also lose our investment on there. We will make a good advertisement by AD
agency and give advertisement in television.
D. Place:
After discussing we decided our store will be Savar, Dhaka. Its not so far from our city. The main cause
for open our show room in Savar because in Dhaka there is a lot of traffic jam and environment is not
very good so we are taking our store in savar.it is traffic free area and our store will be big in size but in
main city it is difficult to find big place. All the places are booked and another important fact is there is a
lot of competitor in Dhaka so if we open our show room in Savar we hope it will be work. Other side our
head office will be in new elephant road. Here we will take order if anyone asked and we will make our
furniture here. Other side in our city lot of parts available if needed. After making we will take our
furniture to Savar anyone want they can come our head office. We think our place is perfect for our store.
Other side it is also famous place in Dhaka.

E. Packaging:
Packaging another important source for attract customers and other stores. We will make our product
package so different and unique. Print of our package will gain attention to the customer. We will try to
make our every product unique and colorful. Our package will be made by strong paper which will be
protecting our product from any occurrence. Our design of package will be made by professional designer
and they will be paid high charge. Our main motto is to make different and look different, so this is a very
important issue for us and we believe that we can make our packaging level best than other competitors.
F. Positioning:
positioning is an important part for every business.it makes our position in business.in positioning most
important is that how attractive is our company name and how people are taking in their mind. How we
are success in branding our product. If we are able to establish a successful brand and reach top of mind
then we can success or can say we have established well known business. Place is also depend on
positioning.
G. People:

The entire employee should be good and well behaved because they are important part of our business.
Our customer increasing number, popularity, reputation is also depend on their behave and service. How
they are treating customer and how customer are taking it is an important fact.so we will hired well
behaved and well-mannered managers and employee.

Organizational plan
A. Form of ownership:
It will be a partnership business and all the members will be responsible for the business. Partners will be
equally and jointly liable for all debts of the company. We are five partners and we all will have same
share.
B. .Identification of partners or principal shareholders:

The name of our company will be Got Wood Company. The location of our firm will be at Savar,

Dhaka and head office will be in new elephant road, Dhaka.

We will be five partners of this company. Our partners name and e-mails are given under below

Maruf Abedin
Oli Ullah Chowdhury
Sabreen Sayeed
Khalifun Nahar Moutusy
Arefin Taher

It will be furniture business and we will be retailers. We will make furniture from wood and sell

them to local markets.

Each partners will be investing the same amount and each one will be giving 1 crore tk and total

investment will 5 crore tk.

If any partners want to withdraw money in every month they will have fixed amount that they can

withdraw.
Each partner will share profit and loss equally because their investment is equal.

C. Authority of principals:
Authority of principals will be all the partners and other executive officers who are permitted to be part
principals. Their main duties are to monitor the company and make plan for how to run the company.

They all are made rules and regulation. They are the highest level of authority and make any decision
what they want to take.
D. Management-team background:
All the members of management team will be qualified. Our MD of the company will be selecting the
employees on a basis of their background. We will make hard management team so that we can compete
with others. Everyone will be trained by managers for developing their skills. Other side our marketing
,R&D, production ,Human resource ,finance all this sectors are called management team so everyone will
be responsible for their work. All the members will follow the rules and regulation. Rules will be same for
all. Voting system will be available. Every partners and managers will have their own specialty and will
assign to the post for which they are suitable.
E. Roles and responsibilities of members organization:
The company will have many roles and suitable persons will be assigning for every roles. Under below
roles and responsibilities are given:
Managing Director (MD):
Our company will have one MD and he will be responsible for selecting employee and have
responsibility for success and failure of a company. He has to manage all form of incoming and out
coming communication. Though he is a partner of ownership but he will be paid. Khalifun Nahar
Moutusy will be MD of our business.

Marketing Head:
He will be our partner and he is Arefin Taher. All the marketing planning will be made by him. Other
marketing managers can suggest him if they have plan. He also has core responsibility for company. He
has to analysis market and make plan. Assign work to others marketing managers. He will be also paid by
companies.

Production Manager:
Maruf Abedin will be our production manager. He will organize the production department of the
organization. The key responsibilities of this position are stated below: Control the whole production

process. Ensuring raw material is providing timely and made into finished goods effective. Set standard
and targets for each section for production process. Monitoring the quantity and quality of raw material
used and produced goods of a production line.
R&D:
Another partner will be R & D manager of our company. He will be Oli Ullah Chowdhury. R&D
managers major duties are: Research for the new product idea or modify the existing one. Eliminating
cost for producing by using different method. Design of new product process and type. Focus on
improvement, development, modification and introduction of new product, features, process. Be up to
date with new technologies, approach.

Finance Head:
Sabreen Sayeed will be the Finance Head of our company. Finance managers major duties are: Finance
manager oversees the preparation of financial reports, direct investment activities, and implement cash
management strategies. Develop and implement accounting and internal control systems, standard
operating procedures. To deliver accurate and timely finance transactional processing in finance shared
service center. A financial manager is responsible for providing financial advice and support to elements.
Formulating strategies and long-term business plan. Developing financial management mechanisms that
minimize financial risk.

On the other side we will managers and employees who will work under our company. Everyone will get
bonuses and incentives on the basis of their performance. They get promoted and will also get higher
salaries.

Assessment of Risk
Evaluation of weaknesses:
Lack of experience: We are very new to this retail based wood business and we have a very little
experience about this business. But, as we are pretty passionate about this business, we think we will be

able to overcome this problem by various kinds of diversification strategies and new technologies. This
business is very competitive in Bangladesh as a lot of wood based retail business has developed.
Experience can be one of the weaknesses that we might encounter.
Level of competition: Bangladesh is an emerging market with a growing economy. A lot of business has
been developing everyday here. Got wood is also a new business and has to face a lot of competition
throughout the country. Most of the existing businesses have a huge amount of paid up capital and these
can be one of their advantages while competing with others because they can easily follow the dumping
strategy which might cost us.
Lack of preparation: Lack of preparation is among the most significant weaknesses in small-business
financing, and its a weakness with multiple components and potential negative outcomes. Small
businesses typically run on tight budgets with slim profit margins, and startups, in particular, may find it
difficult to gauge financial needs in the early stages of operation. Research, planning and preparation can
help eliminate some of the most notable pitfalls for this business.
Lack of strong contingency planning: In Bangladesh, small-business owners understand the importance of
planning for the worst as well as best outcomes when it comes to business operations. Failure to do so can
become a liability. For example, a late shipment or a major client loss could derail our business that has
no financial contingency plan in place. Likewise, a rush demand for our product or above-average growth
also can be detrimental if our business is not financially prepared to order additional inventory, add staff
or expand facilities.
Lack of resources: Without pre-established, solid financial resources to draw from, a business is in a
precarious position. If our business needs financial padding to make it through a slow period or to invest
in essential new equipment, having no backup financing becomes a major obstacle. The opportunity to
take advantage of a great new business opportunity also falls by the wayside when there are no resources
to draw from. This weakness can be reduced by identifying appropriate funding sources before the
financial need arises.

New Technologies:
New-edge technology can create high benefits for businesses that are willing to be early adopters. This
strategy, however, requires businesses to abandon technologies that never fully mature or that are
themselves dropped by their parent companies. Since wood and furniture is very competitive type of
business in Bangladesh, we will be selling furniture via online. We will utilize the fast growing internet
sector in Bangladesh to supply the finished wood furniture to our customer. Besides, there will be some

section where customers will decide from what type of wood they want to have their furniture and the
design of the furniture. Customization in this industry is a new way to penetrate the market for this
business. Besides, we will be having some customized wood cutting materials which will reduce the
wastages that usually are generated from cutting the woods. Besides, we will be collecting the raw
materials directly from the suppliers that are located in west side of Bangladesh. We will be using a fast
track system which will enable us to give signal whenever we have a shortage of raw materials
automatically. This will strengthen our supply chain activity smoothly. In addition, we will be using eco
friendly sustainable wood to produce the furniture that is going to the customers.

Contingency Plan:
A contingency plan is a 'Plan B' that provides other options to address a change in the original plan. It
means being proactive and planning ahead, rather than reacting to an unplanned situation and ensuring
that there is flexibility within the planning process to allow for unforeseen circumstances.
Our alternative plan for our business will be to sell the customized furniture to already established
business and serve them as a supplier of furniture. This plan will be immediately in action if the main
objective of our business is not achieved. There are large potential for the suppliers of furniture business
because there are a lot of furniture business which has developed without having a strong brand name.
They are locally based business and most of the customers of those businesses are lower middle class
people. We would be supplying our finished furniture to them at a large quantity within a very reasonable
price. This strategy may help us in case there is any kind of discrepancy on our business plan and the
outcome of it.
Besides, we would be having another plan to bid on the contract on that are given by the schools, colleges
and universities for making a large quantity of table and chairs for the student. This market does have a
huge potential because there is a growing number of schools, colleges and universities establishing. And
interestingly the number of students in Bangladesh is also increasing in growing number. Most of schools,
colleges and universities offer tender to buy a specific amount of tables and chairs for their students and
teachers. We think that this market can be profitable for us if we bid in the contract offered by those
educational institutions. Once we get an offer, we will be making the tables and the chairs in the same
design that will be chose by their authority. This alternative will satisfy our investors as it is very strong
based emerging market and level of competition in this sector is also not up to the level of that of the
furniture business.

Financial Plan:
A)
Assumptions of financial plans:
As furniture is very attractive and moderate form of business, we have made our financial plans based on
some significant assumptions. Our main assumptions are based on the sales of furniture and solid
marketing plan. The sales of furniture will be only way to boos t our business and with the increasing
amount of sales, our business will grow. We have assumed that our sales will grow by 25% each of the
first three years and most of the items in the income statement and balance sheet will also be growing by
almost the same amount. But, there may be some exceptions which are mainly assumed by the situations
that we are going to face. Cash flow statements are also being made based on the same assumptions as
with the sales. As the business requires a lot of cash on hand we will be mainly focusing on cash sales but
sometimes we will be making some credit sales for the lower middle class people. We think that this
method may increase our sales as majority of the Bangladeshi people are below middle class people. The

balance sheets items are also figured by the amount that we assumed from the growing number of sales.
Equities are assumed by adding the retained earnings in the business in order to lower the dependency on
the Bank loan. Besides, in order to expand our business we need to reinvest some of the portion of income
in our business. In summary, most of the items are assumed based in the sales and some of it have been
determined by focusing on market and future situation of the business

B)
Got Wood
Pro Forma Income Statement
Five years
1st

2nd

3rd

4th

year(BDT)

year(BDT)

year(BDT)

year(BDT)

5th year(BDT)

Revenue

20,00,000

25,00,000

30,00,000

40,00,000

45,00,000

(-)Direct cost of sales

(5,00,000)

(7,00,000)

(10,00,000)

(12,00,000)

(15,00,000)

Gross profit

15,00,000

18,00,000

20,00,000

28,00,000

30,00,000

2,50,000

3,50,000

4,00,000

4,00,000

5,00,000

50,000

70,000

80,000

90,000

1,00,000

Utilities

20,000

25,000

30,000

45,000

45,000

Rent

60,000

60,000

60,000

60,000

80,000

Other operating expense

50,000

50,000

50,000

60,000

75,000

Interest expense

70,000

70,000

70,000

70,000

70,000

Total Expense

(5,00,000)

(6,25,000)

(6,90,000)

(7,25,000)

(8,70,000)

Net Profit

10,00,000

11,75,000

13,10,000

20,75,000

21,30,000

Expenses:
Payroll
Sales, Marketing and other
expenses

C)

Got Wood
Pro-Forma Cash Flow statement
For five years

1st

2nd

3rdyear(BDT

4th year (BDT)

5th

year(BDT)

year(BDT)

Cash from sales

10,00,000

12,00,000

16,00,000

24,00,000

30,00,000

Cash from receivables

6,00,000

8,00,000

10,00,000

12,50,000

14,00,000

Total cash inflow

16,00,000

20,00,000

26,00,000

36,50,000

44,00,000

Cash outflow for

(4,00,000)

(5,00,000)

(6,00,000)

(6,50,000)

(7,00,000)

(11,00,000)

(9,00,000)

(7,00,000)

(2,00,000)

(4,50,000)

1,00,000

6,00,000

13,00,000

28,00,000

32,50,000

year(BDT)

Cash received

operations
Cash outflow for fixed
asset
Total cash flow to
business

D)
Got Wood
Pro-forma Balance Sheet
Next Five years
1st

2nd

3rd

4th

5th

year(BDT)

year(BDT)

year(BDT)

year(BDT)

year(BDT

Assets:
Current Asset
Cash

1,00,000

6,00,000

13,00,000

28,00,000

32,50,000

Accounts Receivable

4,00,000

7,00,000

10,00,000

11,00,000

12,00,000

Inventory

3,50,000

4,00,000

4,50,000

5,00,000

5,50,000

Other current assets

2,00,000

2,50,000

3,00,000

3,50,000

4,00,000

Total current asset

10,50,000

19,50,000

30,50,000

47,50,000

54,00,000

Long term Asset

16,00,000

20,00,000

25,00,000

30,00,000

35,00,000

Total asset

25,50,000

39,50,000

45,50,000

67,50,000

89,00,000

Accounts payable

2,50,000

7,50,000

10,50,000

14,00,000

21,00,000

Current borrowing

2,00,000

1,50,000

4,00,000

5,00,000

4,00,000

Other current liabilities

1,50,000

2,00,000

2,00,000

3,50,000

5,00,000

16,00,000

20,00,000

20,00,000

35,00,000

45,00,000

Paid up capital

3,50,000

8,50,000

9,00,000

10,00,000

14,00,000

Total Liabilities and equities

25,50,000

39,50,000

45,50,000

67,50,000

89,00,000

Fixed asset

Liabilities and Equities:

Current liabilities

Long term liabilities

Long term liability
Equities

E)
Break even analysis:

2000000
1500000
1000000
500000
0
500

1000

1500

2000

2500

3000

3500

4000

-500000
-1000000
-1500000
Break Even Analysis

Linear (Break Even Analysis)

On the above graph, we can see the break even analysis of Got Wood. Here, X-axis represents the
number of units or furniture that we will be selling and the Y- axis represents the amount of money that
we will be generating by selling the furniture or number of units. If we sell less than 2000 units of
products or furniture, than we will be incurring losses. In order to break even, we need to sell 2000 units
of our furniture. At this point, we will be covering all the expenses that we will incur to start and run the
business. After selling 2000 units of furniture, we can then realize that all the cost that we will be
incurring has been made up. Above the point 2000, we will be generating profit to run the business
smoothly.

F)
Sources of funds and applications:
In order to set up and run our business, we need a lot of financing from the investors, Bank loan or selfinvestment. We have decided that as we are five partners of this business, we all will be contributing by
portion of money to set up the business. At the very starting time of our business, each of us will be
contributing BDT70, 000 and will be taking a loan from the bank which is worth of BDT 12, 00,000. So
for the first year our sources of funds will be:
Sources of funds

BDT

Investment of owners

3, 50, 000

Bank Loan

16, 00, 000

Later on, we will be taking additional amount of loans from the bank to cope with the expansion of the
business. We have forecasted the Pro-forma balance Sheet where we showed we will be taking an
additional amount of loans from the bank. Besides, we will be reinvesting the income that we will be
generating by running the business. As we have forecasted that there will be a handsome amount of net
profit we will be going to have of our assumptions gone perfect. From the net profit of the first year
which is BDT10, 00,000, we will be reinvesting BDT 5 00,000 and the rest of the money will be equally
divided by us. We will be following the same method for the next years in order to expand our business
and create a strong business value.

Appendix:
1

O. Mandie,. (2009, march 6). Retail furniture manufacturer business plan. The house of Pine.
Retrieved from:
http://www.bplans.com/retail_furniture_manufacturer_business_plan/financial_plan_fc.php

Lots of small business ideas which one is best for you.(2010) Opening a small business.

Retrieved from: http://www.opening-a-small-business.net/small-business-ideas.html

The small business plans.( 2012). Business week. Bloomberg business Retrieved from:
http://www.businessweek.com/small-business