Multilevel Marketing Business Plan

Business Plan for MLM Developed by Abul Khayer Kazi
Executive Summary
One of the main struggles that were at the start of business, the idea was, in fact.
Which is wanted something scalable and necessary in our society. Through hundreds
of ideas before combed current companies business. By this time of discovery, I
found what I will be the five most important concepts in order to determine what to
believe is the perfect business idea. So, what is the perfect idea? Each entrepreneur
has any concept of your business. While Google is a big deal for the founders of the
company – can be a major problem for others, only on the technology or do not want
to run a large organization. Therefore, the company is defined by the perfect
business owners. In this sense, we’ll start in my five concepts to find the right one:
Understand Number One – Customers: This may seem odd to start here, how do you
know your customers before they have a business idea into effect. The answer is
simple to make – your customer transactions, so there is no business without
customers. If you have a business idea, does not seek to develop the idea of what
potential customers want or need to think, but know what your customers really
want. Too often, entrepreneurs have an idea on its head and the right to jump with
both feet. But after this they soon discover that their target audience, what they
have to offer. Have used time and money on a single project is not the perfect
business idea.
On the other hand say that you have no idea to go – and the understanding of the
consumers (who lead your customers) on the perfect idea. Learn what consumers
need and potential construction meets these needs that the customers their way into
your home – is the perfect business idea. Number Two – Passion: Passion here does
not mean that you are a fan of your product or service. However, this means an
interest in what you do. More often than not, it will be 15 to 18 hours a day working
on your business from the outset – usually during the first 12 to 18 months (more
than 2 years) in this economy. You need to constantly considering how to improve
and grow your business and talk to everyone, everywhere. If you only have one
company that has no passion for something that does not jump out of bed every
morning to start, it becomes very difficult to put in the time and energy to make it a
success – as an idea of a perfect fit.
Number Three – Understand your competition: Every company has competition – is
made either directly or indirectly. Think of the movies. You have the direct
responsibility of the videotapes, or television rental shops at home. They also have
All right Reserved to Khayer@odesk.com 1

indirect competition from any other activity where consumers spend their disposable
income, such as bowling, paintball, golf, etc. Whatever the people in their spare
time. In addition, some competitors are ruthless. This means that if you promote and
deliver a product that is similar to them, but at a lower price to achieve only
competitors to lower their prices or to strike. If you have already started businesses
– may be able to undercut their prices enough to make the drive out of business.
Please note, your competitors – what they are willing to do to get it out of your
market – you can spend more time in a price war, while the growth of your business
– not the idea of enterprise perfectly.
Number Four – Cash Flow: Many entrepreneurs enter the business world with big
ideas but very poor understanding of the necessary capital to the about your
company. Most of them are prototypes of your product or service and understand
what it is on the product or service production, but not the necessary capital to the
rest of the organization – including marketing management (very expensive but very
necessary), rather than add staff ( salary or wages), insurance or supplies and other
costs very quickly, such as telephone, Internet, etc., the knowledge of the entire
cash flow is used to ensure that all costs (fixed and variable) by the company —
perfect business idea will be covered. I have seen too many words, companies with
excellent products fail because they simply do not cover the rent or utilities.
Number Five – She: Do you know who you are. Know your strengths and
weaknesses. Knowing that you are willing to do the ready and capable of what it
takes to lead your business successful. I worked with several entrepreneurs in the
past that I think we all need to do is hang the shingles and they did. So when it
comes to the actual day-to-day business to run – are not willing to devote time,
energy or money to invest for success. Therefore, we know how much you are willing
to work. In addition, you know your personal financial situation and what the
company needs to generate to cover your lifestyle. If you think your company pays
you a salary for a big day – it will not. And if you are not the perfect business idea
for you. Take the outside distractions, how your personal financial situation – You
Get Those commissioned – so if your business concept to materialize – you will be
able to focus exclusively on the design and growth. Ultimately, the financial security
they need is – the perfect business idea. Whatever your level of desire for your
business – a way of life of the mother-and-pop operation or a multinational
conglomerate with – if you develop a business idea with these five concepts in mind
– is your idea of business “idea that you perfect.

Multi-Level Marketing (MLM) opportunities seem to be everywhere you turn these

days, not only online, but in every part of your life including school and church,
where fervid entrepreneurs lobby even their bible study groups to buy their product
or service. Even police departments have been invaded by MLM schemes. The San
Diego police department actually had an illegal pyramid scheme discovered within
one of its departments!
Equally prevalent are the misconceptions of what this business is and whether it
really is a legitimate business or a scam. Trying to find "truth" in this morass of
information is a challenge. The appeal of a business with minimal investment and a
support system in place cannot be denied. But is this for real? Let's take a look.
One of the most confusing aspects of assessing the viability of many of the business
"opportunities" being hyped is the variety of terms used to describe them. MLM is
also frequently called network marketing, consumer direct marketing, or seller
assisted marketing and other terms continue to surface.
The Concept
Multi-Level Marketing
MLM is essentially any business where payouts occur at two or more levels. For
instance, if you make a sale, both you and the person who recruited you will get a
portion of the proceeds. This is the most commonly used term partly because its
definition fits within the legal restrictions for this type of business.
Network Marketing
Network Marketing means that a distributor network is needed to build the business.
Usually such businesses are also MLM in nature in that payouts also occur at more
than one level. The term Network Marketing is sometimes also incorrectly used to
indicate that the business uses a network of product suppliers in order to offer a
broader selection of products. Businesses that describe themselves this way are
usually trying to differentiate themselves, suggesting that their program is superior
to other programs.
Consumer Direct Marketing
Consumer Direct Marketing is a deceptive term that labels the distribution chain as
consumers rather than distributors. In such businesses the distributor must also buy
the product for their personal use.

Seller Assisted Marketing
Seller Assisted Marketing Plans is a term used by California law to describe a variety
of business forms which include MLM. A minimum $500 investment must be involved
to qualify as a Seller Assisted Marketing Plan.
Here is some information to help you decide if this is a good path for you.
The Legality of Multilevel Marketing
MLM companies operate under their own set of guidelines which come in every
possible variety imaginable. The general looseness of the guidelines has resulted in a
large number of lawsuits from distributors who have lost substantial sums of money
in the programs. The landmark legal case for the industry is the 1979 Federal Trade
Commission ruling on Amway which found that although Amway engaged in
deceptive practices, as long as profits were made through the sale of product, the
company could continue to operate within the law.
For MLM businesses to operate legally, they must meet the following criteria:
1. The company brings a product or service to the marketplace that is (a) retailable
and (b) being retailed;
2. The product or service reaches the end user through direct sales representatives
(independent contractors), rather than through traditional retail establishments;
3. The company's compensation plan (a) is designed to reward representatives for
the sales of the product or service they make, and (b) includes a feature that
additionally rewards a representative who introduces an additional representative to
the company, based on the sales volume of the second representative.
A business that has all these components except for 3 (b) is a single-level direct
selling company. 3 (b) is what makes it an MLM. All of the criteria above must be
met for the MLM business to be legal. Any missing component turns it into an illegal
business. For instance, if in 3. the second representative does not personally sell the
product or service, the business is no longer legal. How much that percentage of
sales needs to be has not been defined. If a program compensates representatives,
directly or indirectly, simply for the introduction or enrollment of other participants in
the program, it is considered to be a pyramid scheme which is illegal.
Additionally, recent court decisions have ruled that at least 70% of all goods sold by
the MLM company must be purchased by non-distributors.
Beyond understanding what an MLM is, however, there is still an incredible
controversy raging about whether these companies really do what they say they do.

The Truth Be hind the Claims

Let's look at what an MLM promises and the truth behind those promises. Some of
the claims made are:
1. Network marketing is a way to make tons of money.

The Truth
2. MLM is the wave of the future. Eventually all products will be sold by MLM.
The Truth
3. MLM operations don't have huge advertising and marketing budgets so they can
afford to pump a lot more dollars into developing their products, resulting in a higher
quality product that can still be sold at a lower price than comparable items sold
through conventional means.
The Truth
4. There are an endless group of recruits available to be down line distributors.
The Truth
5. It is easy to sell to your friends and family. They love you and want you to
succeed.
The Truth
6. MLM can be done in your spare time. You make millions while you sleep.
The Truth
Many people liken what happens in many MLM companies to being brainwashed by a
cult. Members mouth company mottos with no conscious awareness of how ludicrous
the claims may be. There are families who feeling they have "lost" a family member
to an MLM scheme, have initiated cult deconditioning to "rescue" their family
member from the organization. While this is not true of most MLM organizations, do
question all exaggerated claims asking for substantiation of facts. In suspect
organizations, instead of facts, a smokescreen of counter challenges will be the usual
response.
Are there good MLMs and is this a viable way to make a living? Of course. In sense,
the success of the good companies is what has attracted so many scammers. But the
scammers are so invasive and overwhelming in their sales pitches, it is difficult to dig
down to the real gems in this field.

The Market
One, Two, Step! will grow at 3% and there are many potential customers now, patiently
awaiting the start of business. One, Two, Step! will differ from other retail ICT Modules
stores because we will always be less expensive than the competition, but we will still
maintain the high quality of our ICT Moduless.
Also, we will offer a sales promotion on a monthly basis, such as:
• buy one, get one half price

• buy one, get one free
• half off on ICT Moduless from the previous season
• "One, Two, Step!" dollars (for every $50 dollar purchase, the consumer receives
an additional 20% off of their next purchase)
The Sales Strategy

Our marketing strategy will not exceed 5% of our annual gross sales. We will use a wide
range of approaches, including our website with free shipping, postcards, business cards,
and word of mouth.
Objectives
The objectives of One, Two, Step! are:

1. To market trendy, elegant ICT Modules, ranging from sizes 5-13, that will cater
to the needs of the everyday woman.
2. To receive a 50% profit margin within the first year.

3. To provide customer service, measured through new and repeat business (our goal
is that 50% of our customers will return within 6 months for an additional
purchase) and multiple sales (our goal is that 30% of our non-running and 60% of
our running ICT Modules sales are accompanied by an additional purchase).
4. To achieve a net profit of $5,000 by year two and $15,000 by year five.
Mission
The One, Two, Step! mission is to offer quality, name brand ICT Modules and
accessories in an assortment of sizes and styles to accommodate the chic in every human.
Keys to Success
In order to succeed in the women's ICT Modules industry One, Two, Step! must:
• Carry an assortment of ICT Moduless sizes and style to fit the personalities of any
woman.
• Provide customers with top-notch personalized customer service in an atmosphere
of southern hospitality.
• Advertise and promote in all areas so that our customer base will learn more about
One, Two, Step!
• Continuously review our inventory and sales and adjust our inventory levels
accordingly.
• Most importantly, always stay on top of the latest trends in the style of women's
ICT Modules
How to Find a Good Multilevel Marketing Business

For your initial MLM experience it is usually wise to start with a company that has
been in business at least three years and is a public company. Eighty-five percent of
network companies fail within the first 18 months so you know it has made it
through some major hurdles if it is still around after three years. And, if it is publicly
traded, you have access to information about its background and the background of
the officers. Find out what the compensation method is for the officers. A percentage
of sales in addition to salary indicates that they have an investment in you doing
well, which is a good sign.

Another good sign is if the MLM is a member of the Direct Selling Association, a
major industry organization which monitors MLM activities worldwide. Also, check out
what your state's laws are on MLM organizations. The "toughest" states are
considered to be Michigan, Arkansas and Georgia. If an MLM practices in more than
one state, it is meeting more than one set of legal requirements, which may indicate
a solid footing for the company.
After you have investigated the company itself, take a look at the product.
• Why would someone want to buy it from you rather than an established retail
establishment?
• Is it unique?
• Is it something lots of people would use so you have a large number of
potential buyers?
• Is it something people need to buy frequently?
• Is this something that is a fad and will go out of style?
Be truthful with yourself. Just because you think a certain vitamin will save the
world, can you convince others enough to make a decent living at this business?
What type of bonus or commission plan does the company offer? Most companies
base commission on the sales of you and your "down line". Bonuses are offered by
some companies as are group health insurance programs, reduced rates for products
purchased for your own use, and other variations on compensation add-ons. Be
certain to ask when and how you get paid. Is it a regular payment plan?
Additional benefits come from support that the company may offer in terms of
literature, audio and video tapes, training, conventions, newsletters, online access
and web pages. Investigate costs for each of these services. Some companies make
the majority of their money from selling you support, rather than selling products.
Your sponsor is part of that support system and should be accessible and provide
you with training and the information needed for you to be successful.
The internet has become a powerful tool for MLM entrepreneurs. That does not mean
spamming everyone you can get an email address on with your sales pitch. Sale or
valid contacts are rarely made that way. It is an expensive, nonproductive way to
expend your efforts, no matter what people tell you who are selling mailing lists with
"prequalified" buyers.
What does work? Online discussion groups and chat rooms are great places to
network. If you set up a website, you can set up auto responders to deliver
additional information if someone selects the opportunity for more information on the

site or forms can be used to allow the visitor to leave contact information should
they wish to contact you directly. Subscribe to online newsletters which may allow
advertising
It is also wise to contact the Better Business Bureau and the Direct Selling
Association for any complaints about the company.
Questions to Ask Before Investing

There are many resources available to help make an informed choice if MLM sounds
like something you want to try. For starters, the Federal Trade Commission gives
some excellent words of wisdom:
1. Avoid any plan that includes commissions for recruiting additional distributors.
It may be an illegal pyramid.
2. If the pay plan does not pay out 75 percent or more in the first two levels,
don't bother looking at the program.
3. Beware of plans that ask new distributors to purchase expensive inventory.
These plans can collapse quickly - and also may be thinly-disguised pyramids.
4. Be cautious of plans that claim you will make money through continued
growth of your "downline" - the commissions on sales made by new
distributors you recruit - rather than through sales of products you make
yourself.
5. Beware of plans that claim to sell miracle products or promise enormous
earnings. Just because a promoter of a plan makes a claim doesn't mean it's
true. Ask the promoter of the plan to substantiate claims with hard evidence.
6. Beware of shills - "decoy" references paid by a plan's promoter to describe
their fictional success in earning money through the plan.
7. Don't pay or sign any contracts in an "opportunity meeting" or any other
high-pressure situation. Insist on taking your time to think over a decision to
join. Talk it over with your spouse, a knowledgeable friend, an accountant or
a lawyer.
8. Do your homework. Check with your local Better Business Bureau and state
Attorney General about any plan you're considering - especially when the
claims about the product or your potential earnings seem too good to be true.
If you think you want to invest, you should:

• Be wary if the start-up cost for the investment is substantial

• Find out if the company will buy back inventory

• Look into what the consumer market is for the products (i.e., how many
people would realistically buy this product)
Industry Watchdogs
The Federal Trade Commission (FTC), Better Business Bureau (BBB), and the United
States Post Office (USPS) have investigated a number of multilevel marketing
businesses.
The Better Business Bureau gives the following advice:
• Before investing, get all the facts about the company, its officers, its
products. Find out the start-up cost, and the company's buy-back policy.
• Get written copies of the company's marketing plan and sales literature.
• Check with others who have experience with the company and its products.
Are the products actually being sold to consumers?
• To check on a company, contact your local Better Business Bureau, district
attorney or state attorney general's office.
The United States Postal Inspection Service advises:
"Fraudulent pyramid schemes typically violate the Postal Lottery Statute (Title 18,
United States Code, Section 1302). They contain all three elements of a lottery: prize
(expectation of monetary or other gain from participation in the pyramid); chance
(the monetary return you may receive from your participation is entirely up to
chance, that is, dependent on the efforts of those below you in the pyramid); and
consideration (the fee you pay to become a distributor). Frequently, the entrance fee
into the pyramid is very high. In many cases, the money spent for such an entrance
fee can often be considered lost the moment you pay.
To protect yourself against falling victim to a multi-level marketing scheme, note
whether the basis of the promotion is the sale of a product at the retail level, as
opposed to an emphasis on recruiting more and more distributors to help you
increase your income. "
Numerous consumer advocacy groups monitor and post information about scams.
Check them out before signing any agreement. If there is high pressure to sign up,
you don't want to be part of this organization. Typical come-on lines include sales
pitches like "new opportunity, only taking the first 100 applicants" or "this price is
good for today only." Walk away from these "deals." You will not regret it.

While no one really makes the millions promised by so many of the scams, many
people find a very satisfying career in some of the multi-level marketing ventures.
With the right company, you may find like-minded colleagues who are pursuing
similar goals. In some ways, it can be the best of all worlds -- no boss, but a good
social network and a job where hard work pays off. However, don't leap without
looking carefully. There are also deep shoals that can draw you in over your head
rapidly. If you tiptoe into the water carefully, checking that you have firm footing all
the way, you will find yourself swimming happily into entrepreneurship.
Company Summary
One, Two, Step! is organized as a sole proprietorship in the name of Chloe Goodlowe.
One, Two, Step! will be located at 123 ICT Modules Lane in Houston, TX temporarily,
until we have the volume to expand into a separate store, to be located in West Houston.
The site is the owner's house, along a busy pedestrian area in the trendy shopping section
of downtown, and is zoned for commercial/residential use. A prominent street-level
entrance leads into a foyer and 2 parlors which are already renovated to accommodate the
business. Built-in shelving with under-shelf lighting will highlight the ICT Moduless,
while antique display tables will hold special and sale items, and accessories. The house
is equipped with security monitors, and the second parlor is fully wired for phone and
internet access. We will use a point-of-sale system to handle in-house sales. Website
sales will be processed by an online credit card processor affiliated with our website
hosting company.
The hours of operation will be Monday - Friday 10 a.m. - 6 p.m., Saturday 10 a.m. - 8
p.m., and closed on Sundays. Customers will be able to purchase directly from our
website and VIP Showcase Events. There will be extended special hours designated
during Christmas holiday shopping season.
All merchandise will be purchased according to the company's mission and customer
focus of ICT Moduless ranging from sizes 5-13 and accessories.
Company Ownership
One, Two, Step! is organized as a sole proprietorship where I, Chloe Goodlowe, am

responsible for the daily management, sales, and development of the company.
Start-up Summary
One, Two, Step! start-up costs are listed below. The company will start with two months
of inventory on hand for ICT Moduless and accessories, as this is the main revenue
generator. The majority of the company's assets will reside in inventory. The opening
day's cash on hand balance will be $10,000.

Successful operation and building a loyal customer base will allow One, Two, Step! to be
self-sufficient and profitable in year two.
Start-up
Requirements
Start-up Expenses
Legal $500
Stationery, business cards etc. $500
Credit Card Set-up $200
UPS Account $300
Supplies (special made ICT Modules boxes, invoices, etc.) $500
Website Start-up $3,000
Total Start-up Expenses $5,000
Start-up Assets
Cash Required $10,000
Start-up Inventory $15,000
Other Current Assets $5,000
Long-term Assets $0
Total Assets $30,000

Total Requirements $35,000
Strategy and Implementation Summary
One, Two, Step! will use a strategy of providing a service to all women consumers with
regular ICT Moduless and "plus size" ICT Moduless. We will offer a product that most
women consumers will require. We will create an atmosphere that is appealing to the
truly fashion forward consumer.
Strategic Assumptions:
1. Every female resident in Houston,TX is a potential customer.

2. Promoting on the Web, by word of mouth and promotional postcards will give
One, Two, Step! the opportunity to draw customers from outside Houston, TX.
3. One, Two, Step! will aggressively pursue all contacts through networking.
Competitive Edge
One, Two, Step! will differ from other retail ICT Modules stores because we will always
be less expensive than the competition, but we will still maintain the high quality of our
ICT Moduless.
Also, we will offer a sales promotion on a monthly basis, such as:
• buy one, get one half price

• buy one, get one free
• half off on ICT Moduless from the previous season
• "One, Two, Step " dollars (for every $50 dollar purchase, the consumer receives
an additional 20% off of their next purchase)
Marketing Strategy
Our marketing strategy will not exceed 5% of our annual gross sales. Marketing will be
via:
• 1, 2 Step! website (to be launched in the first year of business)- free shipping if
ordered by 2pm central.
• Advertisement postcards
• Business Cards
• Word of mouth
Sales Strategy
Our key to sales strategy at One, Two, Step! will be a great buying experience, every
time. Once a customer comes in the door, they will be greeted and assisted as much or as

little as they wish. Some customers are uncomfortable with lots of personal attention;
others expect it. Chloe's experience as a retailer has taught her how to read the subtle
signs that tell her what a customer is seeking when they enter. All customers will be
offered tea or coffee while they shop, and we will have comfortable chairs for friends to
sit in while waiting.
Our sales goal is to generate repeat business and strong word-of-mouth advertising based
on this great buying experience. Word of mouth in new women's apparel and accessory
stores tends to spread to family, friends, co-workers, church members and people we
depend on to provide us a service (hair stylist, nail salon,doctors, etc.), in and out of
state.
We also plan to have software to collect customer information such as:
• Names, addresses, email addresses and phone numbers

• What type of ICT Moduless the customers prefer
One, Two, Step! will also accept returns/exchanges of unworn ICT Moduless with receipt
within 30 days of their purchase to build a trust with all of our customers.
Sales Forecast
I expect a growth rate of 3% annually on ICT Modules sales. I am projecting my sales to

be at this level due to the low wholesale prices and the demand for women's ICT
Moduless. If you notice in my forecast table for the Christmas holidays and summer time,
sales will increase. College kids will be out of school from May to August. Research
shows that most consumers tend to spend the most money during the holidays for
Christmas gifts and they can't miss out on all of the great holiday sales.
In January, sales will most likely decrease because the average consumer has spent a lot
of money for the holidays. January is the month to play "catch-up" on paying their credit
card bills and restoring their bank accounts back to normal.
Direct costs for ICT Modules and accessory sales are set at 70% for the first three years.
This is much higher than normal for the industry, because of our pricing and specials - we
can undersell the competition not through volume, but through the value-added of an
exclusive location, personal service, and the owner's independent income, which does not
require a paid salary.

Sales Forecast
Year 1 Year 2 Year 3 Year 4 Year 5
Sales
ICT Modules $106,440 $109,633 $112,922 $116,309 $119,799
Accessories $1,419 $1,461 $1,505 $1,550 $1,597
Total Sales $107,859 $111,094 $114,427 $117,859 $121,396
Direct Cost of Sales Year 1 Year 2 Year 3 Year 4 Year 5

ICT Modules $63,864 $65,780 $67,753 $63,970 $59,900
Accessories $852 $877 $903 $899 $926
Boxes and bags $1,079 $1,111 $1,144 $1,179 $1,214
Shipping costs for website sales $2,157 $2,222 $2,289 $2,357 $2,428
Subtotal Direct Cost of Sales $67,951 $69,989 $72,089 $68,405 $64,468
BANGLADESH NIRMAAN
PROJECTS
E-Membership

E-Shop
E-Learning
E-Commerce
Project Developed By: ……………………………………………………
Company Information
• Company Name : …………………………………………..
• Address : 448 MM Ali road, Chittagong.
• Contact No : +880-31-2865023, 01917719980
• Corporate E-mail :
• Support :
• Bankers : Standard Chartered Bank,
BRAC Bank.
About e-shop
• An Bangladesh is racing towards the new millennium, we are witness a sea ch
ange in the way of business is being done. What was unimagined and untaug
ht – of even a decade ago is fast concretizing into an
exciting business opportunity. ………………………………………………. Ltd. has
capitalized on its scope and established several business units servicing the
diverse segments of customers in Bangladesh. We want to coil up through a
chain. it never means opposite. But it’s an upgraded version based on
concrete reality. We know how to satisfy. And firmly we want to launch it. We
started to inaugurate a business that means delivery on demand in
99.99% up-time.
• E-shop is one of the platforms to tailor the needs of customers of

………………………………………………….. which aims to develop

communication among product manufacturers, marketers, service providers,

ultimate consumers. It wants to develop an e-chain among the & e-shops
and e-stakeholders through digitalizing business services and solutions for
facilitating business efficiency.
Business, Partners & Customers

What is our business?
To make the business more productive through electronic manifold business services
to provide better value to the customer by benchmarking
the supply chain and value delivery Network.
Who are our customers and partners?
In this competitive and Hi-tech business arena every services is going to be under th
e shade of digitalization and we have equipped to facilitate services where there are
potentialities and gapes to re-engineer the business
services process. Under the umbrella of ……………………………………………. we are going to
serve in the following area:
Farmers, Producers, Services providers,Technology vendors, Supply

chain members, End user/Customer/Consumer ,
Target Group
Value to the Customer

………………………………………………. Ltd. is ready to extend its hand to customize
services so that you may feel us your reliable partner.
We make the services:
COST- EFFECTIVE
HOME DELIVERY
LESS MONITORING INVOLVEMENT
LEES PHYSICAL INVOLVEMENT

We have efficient and dedicated team members to facilitate

the customers effectively. We personating services
to tailor and serve individual needs.
Our Strengths
Human Capital
We are in a position to handle enough amount of liquid money for our e-business
in the e-world through our efficient and expert multi dimensional team. They are
really very much equipped and conversant with the related business area.
Who are in our team?
• ICT Professionals.
• ICT Engineers.
• ICT Consultant.
• Expert Executives.
• Marketing Consultant.
 Marketing Team.
 Sales Team.
 Management consultants.
Our Mission and Vision

………………………………………………………… Ltd.’s mission is to provide
manifold services to customers through “e-shop” & e-shop provides
consumer products and services and even from the e-health care services to
legal aids “we exist to attract and maintain our member. With a strict
adherence to this maxim success will be ensured. Our services and products
will exceed the expectations of the customers”. And to deliver value added
services toward our member. ……………………………………… Ltd.’s
understands people’s needs best and through “e-shop” it tailors the needs
of its customers which aim to develop communication among product

consumers. Its talent vision is to bring equal facility in service getting. It

wants to develop an e-chain among the & e-shops and e-stakeholders
through electronic and digital business services and solutions for facilitating
business efficiency.

Mission
+ Balance in distributing the goods & services.
+ Building Platform for product manufacture, distributors,
retailer, for the general consumers, which platform will be sustainable
& profitable.
+ As per demand of the consumers the stream of supply of
goods & services storing & production can be maintained.
+ Organizing the retails & distributors, developing a social investment
within a platform. Creating a goods & services market, whereby socially
profitable of goods & services will be accommodated. Which
can ensure the win situation for all concern.
+ Developing a sustainable & perfect market
for the product manufacturers, importers, service providing
companies etc..

Vision
Introducing a sustainable platform based on Win-Win strategy
& method for product manufacturers, service providers,
distributors, whole-seller, retailers, & general
consumers by which balanced distribution, production & of daily
necessaries goods & services can be maintained.

e-shop Background
We have been supplying for over a decaled the daily necessaries
goods & services to the entire retailers of Chittagong successfully.
Our remarkable success since 1998 to till today in distribution of every
production of BRAC Dairy & foods projects i.e. Aarong milk &
other product of Aarong foods.
Although we started the distribution & supply business
only from the Kotwali Zone but today with the help of Almighty
“ALLAH” we have spread our distribution & supply chain all
over the Chittagong metro as SOLE DISTRIBUTORS of BRAC Dairy & Food
project successfully.
And we have been entitled as the only one
successful distributor. Achieved the ample success in marketing.
Our Marketing Network

The revolutionary change will come in the life style of million of
peoples it will bring improvement in their standard of life in
this new millennium due to the development of e-network among the
consumers, distributors & companies.
We firmly believe change cannot be resisted so we are working as
the introducer of tele-Commerce, m-commerce, e-Commerce by developing
the Tele-network, e-network.
Goal of Our Network

Creating a common network of business running mechanism

by partnering the producers, distributors, all of the agent whole seller’s
retailers of the country in a linear platform where all of the
concerned STAKEHOLDER exists in their chair. And all of the necessary
activities & communication can maintain harmoniously among this chain
member. So there will have no chance of deterioration in the chain
relationship which will be easy to take any key decision regarding anything.
No development is possible before ensuring the

continuous development of technology getting along
with the changing circumstances & time, rice, Dal, wheat, milk product
including all of the service & goods. If these can be made available to the
general & ultimate consumer through electronic mechanism, then only
a country wide e-distribution platform can be developed
continuously along with it all to the concerned stakeholders & institution
in this distribution network & chain will be benefited. It
will add new dimension in the strain of development of the country’s
economy.
Who is Behind US?

e-shop comes forward to serve the people with its intrinsic attributes with the hand
of ICT & e-shop Development Ltd. Its first setup of operation in Bangladesh to
ensure the unique and equal “IT” and “e-services” services to the all classes
people in the society and to reduce discrimination in this regard. ICT & e-shop
Development Ltd. is one of the most dynamic IT based business powerhouse in
Bangladesh. …………………………………………………… Ltd. is based in Chittagong. It
provides all kinds of ICT solution like
Telecommunication.
Software.
Web based Services & application.
Call centre.
&

Data network solution.
Sales & Distribution Network of e-Shop

e-Shop HQ
Sales & Distribution Centre
Rice & Potato comes from
Farmer/Manufacturer
Onion & Dal comes from
Farmer/ Manufacturer
Order
Order
Supply as per order
Supply as per order
Supply as per order
Supply as per order
Order
Order
Ultimate Chain Network of e-Shop

Khulna
Barisal
Rajshahi
Sylhet
Dhaka
Chittagong
Developed Bangladesh.
Rangpur

Media of Order & Supply Management

Order Collection Media :
• e-Commerce based web portal.
• Call Centre.
• Daily Schedule basis.
Supply Media:
• Through own transport (Direct Supply).
• Through Manufacturer.
• Through Rented Transport
Ultimate Product & Services of e-Shop

Community based e- Health
Community based e-Marketing
Community based Housing
Community based e-Learning & u-Learning
Community based e-Security Service
Community based e-Care Services
Community based Telecom Services
Community based Call Centre Solutions and services
Community based e-Commerce
Community based production and distribution
community based Public Information and e-Care centre
Community based Cooperative society or ltd. company
e-NGO for community based development
Community based Poverty reduction projects
e-Money

Management Summary
When the company begins the start-up phase, I want to hire an assistant to basically be
my right hand and one other person for coverage. The hire process will be well-thought-
out and will take serious consideration to make sure that the employees will be
trustworthy, have great attitudes and can provide excellent customer service. I
will continue to be in charge of Operations.
I also would like to reach out to college students looking for part-time jobs or just a
summer job to earn some extra money for school. I am also willing to hire to the "right"
person with no experience, because I feel that everyone has to start somewhere. I
remember someone who gave me a chance when I had no experience and now I feel it's
my turn.
Personnel Plan
There will be two part-time employees working 20-30 hours per week. They will be paid
at a rate of $9.00 per hour. All employees will benefit from a one day paid holiday on
their respective birthdays and one week of paid vacation after twelve months of
employment. Bonuses will be given annually in the month of December.
At this time medical/dental benefits will not be offered to employees. As profits increase
in the future medical/dental benefits will be offered to all employees.
Personnel Plan
Operations Assistant (part-time) $12,150 $12,200 $12,300 $12,300 $12,300
Sales Associate (Part-Time) $9,360 $9,400 $9,400 $9,400 $9,400
Total People 2 2 2 2 2
Total Payroll $21,510 $21,600 $21,700 $21,700 $21,700
Financial Plan
Sales growth will be aggressive the first 18 months as we sharpen our merchandise
assortment, size scales, and stock levels to better meet our customers' requirements.
However, it is expected that One, Two, Step! will become profitable in the first year, but
not excessively so. This is partly due to our lower overall sales price for merchandise,
compared to our competitors, but also due to the fact that all our sales must come from
customers lured away from other retailers. Once we have a solid customer base, we can
increase our margins slightly without risk of losing customers.

Break-even Analysis
Our break-even analysis is summarized by the following chart and table. In order to break
even, we must sell at least $7,312 of ICT Modules and accessories per month. We should
easily sell more than this even in our first month.
Break-even Analysis
Monthly Revenue Break-even $6,585
Assumptions:
Average Percent Variable Cost 63%
Estimated Monthly Fixed Cost $2,436
Projected Profit and Loss
The following table and charts show our profitability for the next three years, and detail
our operating expenses. these include a portion of the mortgage for my house, for the
spaces which will be dedicated solely to business operations.


Pro Forma Profit and Loss

Sales $107,859 $111,094 $114,427 $117,859 $121,396
Direct Cost of Sales $67,951 $69,989 $72,089 $68,405 $64,468
Other Costs of Sales $0 $0 $0 $0 $0
Total Cost of Sales $67,951 $69,989 $72,089 $68,405 $64,468
Gross Margin $39,908 $41,105 $42,338 $49,454 $56,928

Gross Margin % 37.00% 37.00% 37.00% 41.96% 46.89%
Expenses
Payroll $21,510 $21,600 $21,700 $21,700 $21,700
Marketing/Promotion $2,375 $1,500 $2,000 $2,500 $2,750
Depreciation $0 $0 $0 $0 $0
Mortgage %/Rent $1,800 $1,800 $1,800 $1,800 $1,800
Utilities $960 $1,000 $1,100 $1,200 $1,300
Insurance $1,800 $1,850 $2,000 $2,200 $2,250
Website maintenance $372 $375 $375 $375 $375
POS contract/fees $420 $450 $450 $450 $450
Payroll taxes $0 $0 $0 $0 $0
Total Operating Expenses $29,237 $28,575 $29,425 $30,225 $30,625
Profit Before Interest and Taxes $10,671 $12,530 $12,913 $19,229 $26,303
EBITDA $10,671 $12,530 $12,913 $19,229 $26,303
Interest Expense $2,274 $1,875 $1,459 $1,042 $626
Taxes Incurred $2,519 $3,196 $3,436 $5,456 $7,703
Net Profit $5,878 $7,458 $8,018 $12,731 $17,974

Net Profit/Sales 5.45% 6.71% 7.01% 10.80% 14.81%
Start-up Funding
I will be investing $10,000 in the business, and am seeking another $25,000 in SBA long-
term loans, to be repaid over six years.

Start-up Funding
Start-up Expenses to Fund $5,000

Start-up Assets to Fund $30,000
Total Funding Required $35,000
Assets
Non-cash Assets from Start-up $20,000
Cash Requirements from Start-up $10,000
Additional Cash Raised $0
Cash Balance on Starting Date $10,000
Total Assets $30,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $25,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $25,000
Capital
Planned Investment
Owner $10,000
Investor $0
Additional Investment Requirement $0
Total Planned Investment $10,000
Loss at Start-up (Start-up Expenses) ($5,000)

Total Capital $5,000
Total Capital and Liabilities $30,000
Total Funding $35,000
Projected Cash Flow
Our projected cash flow is outlined in the following chart and table. The table lists sales
tax collected and paid out, as well as repayment of the loan we are seeking.

Pro Forma Cash Flow

Cash Received
Cash from Operations

Cash Sales $107,859 $111,094 $114,427 $117,859 $121,396
Subtotal Cash from Operations $107,859 $111,094 $114,427 $117,859 $121,396
Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0
Subtotal Cash Received $107,859 $111,094 $114,427 $117,859 $121,396
Expenditures Year 1 Year 2 Year 3 Year 4 Year 5
Expenditures from Operations

Cash Spending $21,510 $21,600 $21,700 $21,700 $21,700
Bill Payments $70,868 $82,102 $84,729 $82,123 $81,093
Subtotal Spent on Operations $92,378 $103,702 $106,429 $103,823 $102,793
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $4,164 $4,165 $4,165 $4,165 $4,165
Purchase Other Current Assets $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0
Subtotal Cash Spent $96,542 $107,867 $110,594 $107,988 $106,958
Net Cash Flow $11,317 $3,227 $3,833 $9,871 $14,438

Cash Balance $21,317 $24,544 $28,377 $38,248 $52,686

Important Assumptions
I assume that the economic conditions will improve in the next two to three years.
Therefore, business will be good in year one, but years two and years three. One, Two,
Step! will be very successful.
General Assumptions
Plan Month 1 2 3 4 5
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0
Projected Balance Sheet
The table below outlines the projected balance sheet. While, as a retail store, we have no
plans for long-term assets, we will have a healthy cash balance, growing over the next
five years. We plan to pay off our loan within six years, and increase the net worth of the
business from $5,000 at start-up to over $15,000 by the end of five years.
Pro Forma Balance Sheet

Assets
Current Assets
Cash $21,317 $24,544 $28,377 $38,248 $52,686
Inventory $13,255 $12,111 $12,475 $10,905 $10,208
Other Current Assets $5,000 $5,000 $5,000 $5,000 $5,000
Total Current Assets $39,573 $41,655 $45,852 $54,154 $67,894
Long-term Assets
Long-term Assets $0 $0 $0 $0 $0
Accumulated Depreciation $0 $0 $0 $0 $0
Total Long-term Assets $0 $0 $0 $0 $0
Total Assets $39,573 $41,655 $45,852 $54,154 $67,894
Liabilities and Capital Year 1 Year 2 Year 3 Year 4 Year 5
Current Liabilities
Accounts Payable $7,859 $6,649 $6,992 $6,728 $6,660
Current Borrowing $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0
Subtotal Current
$7,859 $6,649 $6,992 $6,728 $6,660
Liabilities
Long-term Liabilities $20,836 $16,671 $12,506 $8,341 $4,176

Total Liabilities $28,695 $23,320 $19,498 $15,069 $10,836
Paid-in Capital $10,000 $10,000 $10,000 $10,000 $10,000

Retained Earnings ($5,000) $878 $8,336 $16,354 $29,084

Earnings $5,878 $7,458 $8,018 $12,731 $17,974

Total Capital $10,878 $18,336 $26,354 $39,084 $57,059
Total Liabilities and
$39,573 $41,655 $45,852 $54,154 $67,894
Capital
Net Worth $10,878 $18,336 $26,354 $39,084 $57,059
Business Ratios
One, Two, Step!'s ratios can be seen in the table below. For comparison, we have
included standard business ratios for the Miscellaneous retails stores industry, SIC Code
5999.
Ratio Analysis
Industry
Profile
Sales Growth n.a. 3.00% 3.00% 3.00% 3.00% 2.79%
Percent of Total Assets

Inventory 33.50% 29.08% 27.21% 20.14% 15.03% 33.69%
Other Current Assets 12.64% 12.00% 10.90% 9.23% 7.36% 24.88%
Total Current Assets 100.00% 100.00% 100.00% 100.00% 100.00% 75.34%
Long-term Assets 0.00% 0.00% 0.00% 0.00% 0.00% 24.66%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Current Liabilities 19.86% 15.96% 15.25% 12.42% 9.81% 37.95%

Long-term Liabilities 52.65% 40.02% 27.27% 15.40% 6.15% 16.70%
Total Liabilities 72.51% 55.98% 42.52% 27.83% 15.96% 54.65%
Net Worth 27.49% 44.02% 57.48% 72.17% 84.04% 45.35%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Gross Margin 37.00% 37.00% 37.00% 41.96% 46.89% 31.49%
Selling, General & Administrative
31.55% 30.29% 29.99% 31.16% 32.09% 18.95%
Expenses
Advertising Expenses 0.00% 0.00% 0.00% 0.00% 0.00% 1.80%
Profit Before Interest and Taxes 9.89% 11.28% 11.28% 16.32% 21.67% 1.05%
Main Ratios
Current 5.04 6.27 6.56 8.05 10.20 1.77
Quick 3.35 4.44 4.77 6.43 8.66 0.70
Total Debt to Total Assets 72.51% 55.98% 42.52% 27.83% 15.96% 61.43%
Pre-tax Return on Net Worth 77.19% 58.11% 43.46% 46.53% 45.00% 2.23%
Pre-tax Return on Assets 21.22% 25.58% 24.98% 33.58% 37.82% 5.78%
Additional Ratios Year 1 Year 2 Year 3 Year 4 Year 5

Net Profit Margin 5.45% 6.71% 7.01% 10.80% 14.81% n.a
Return on Equity 54.03% 40.68% 30.42% 32.57% 31.50% n.a
Activity Ratios
Inventory Turnover 5.95 5.52 5.86 5.85 6.11 n.a
Accounts Payable Turnover 10.02 12.17 12.17 12.17 12.17 n.a
Payment Days 27 33 29 31 30 n.a
Total Asset Turnover 2.73 2.67 2.50 2.18 1.79 n.a

Debt Ratios
Debt to Net Worth 2.64 1.27 0.74 0.39 0.19 n.a
Current Liab. to Liab. 0.27 0.29 0.36 0.45 0.61 n.a
Liquidity Ratios
Net Working Capital $31,714 $35,007 $38,860 $47,425 $61,235 n.a
Interest Coverage 4.69 6.68 8.85 18.45 42.03 n.a
Additional Ratios
Assets to Sales 0.37 0.37 0.40 0.46 0.56 n.a
Current Debt/Total Assets 20% 16% 15% 12% 10% n.a
Acid Test 3.35 4.44 4.77 6.43 8.66 n.a
Sales/Net Worth 9.92 6.06 4.34 3.02 2.13 n.a
Dividend Payout 0.00 0.00 0.00 0.00 0.00 n.a
N.B. The Information is collected from the Web and Local Market in Bangladesh, Asian
Region.

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Business Plan for MLM Developed by Abul Khayer Kazi

All right Reserved to Khayer@odesk.com 1

All right Reserved to Khayer@odesk.com 2

Multi-Level Marketing (MLM) opportunities seem to be everywhere you turn these

All right Reserved to Khayer@odesk.com 3

Seller Assisted Marketing

All right Reserved to Khayer@odesk.com 4

The Truth Be hind the Claims

1. Network marketing is a way to make tons of money.

All right Reserved to Khayer@odesk.com 5

Also, we will offer a sales promotion on a monthly basis, such as:

• buy one, get one half price

The Sales Strategy

The objectives of One, Two, Step! are:

All right Reserved to Khayer@odesk.com 6

2. To receive a 50% profit margin within the first year.

How to Find a Good Multilevel Marketing Business

All right Reserved to Khayer@odesk.com 7

All right Reserved to Khayer@odesk.com 8

Questions to Ask Before Investing

If you think you want to invest, you should:

All right Reserved to Khayer@odesk.com 9

• Find out if the company will buy back inventory

All right Reserved to Khayer@odesk.com 10

One, Two, Step! is organized as a sole proprietorship where I, Chloe Goodlowe, am

All right Reserved to Khayer@odesk.com 11

All right Reserved to Khayer@odesk.com 12

Total Requirements $35,000

Strategy and Implementation Summary

1. Every female resident in Houston,TX is a potential customer.

Also, we will offer a sales promotion on a monthly basis, such as:

• buy one, get one half price

All right Reserved to Khayer@odesk.com 13

We also plan to have software to collect customer information such as:

• Names, addresses, email addresses and phone numbers

I expect a growth rate of 3% annually on ICT Modules sales. I am projecting my sales to

All right Reserved to Khayer@odesk.com 14

Direct Cost of Sales Year 1 Year 2 Year 3 Year 4 Year 5

All right Reserved to Khayer@odesk.com 15

• E-shop is one of the platforms to tailor the needs of customers of

All right Reserved to Khayer@odesk.com 16

communication among product manufacturers, marketers, service providers,

Business, Partners & Customers

Farmers, Producers, Services providers,Technology vendors, Supply

Value to the Customer

All right Reserved to Khayer@odesk.com 17

We have efficient and dedicated team members to facilitate

Our Mission and Vision

All right Reserved to Khayer@odesk.com 18

consumers. Its talent vision is to bring equal facility in service getting. It

Our Mission and Vision

Our Mission and Vision

All right Reserved to Khayer@odesk.com 19

Our Marketing Network

Goal of Our Network

All right Reserved to Khayer@odesk.com 20

Creating a common network of business running mechanism

No development is possible before ensuring the

Who is Behind US?

All right Reserved to Khayer@odesk.com 21

Data network solution.

Sales & Distribution Network of e-Shop

Ultimate Chain Network of e-Shop

All right Reserved to Khayer@odesk.com 22