EXECUTIVE SUMMARY

Deco-Smart is a furniture company providing modern and elegant multifunctional

furniture to customers. With the slogan:" Let's innovation bright your house", Deco-Smart

spreading the concept of saving living space among young generation.

Manufacturing place is located in NE3 Street, My Phuoc III Industrial Park, Binh

Duong Province while showroom is situated in 817 Lac Long Quan Street, Ward 10, Tan

Binh District, Ho Chi Minh City.

Since the price for living space becomes more expensive in urban areas,

multifunctional furniture with elegant design can help people save money, save space while

still providing aesthetic decoration for the house.

The company's target customer are people aged 25-50 living in medium and small

apartments or houses. Most of them are office workers and people who do small business in

Ho Chi Minh City, having the income of over 8 million Vietnam Dong per month.

The advantage of Deco-Smart is the emerging multifunctional furniture market in

Vietnam. Deco-Smart benefits the low-cost land rent, cheap outsourcing cost in Binh Duong,

and up-to-date materials to provide customer high-quality product at reasonable cost. The

rising number of people migrating to urban areas also enhances the trend of space-saving

which paves the way for the application of multifunctional furniture.

With the mission of bringing innovations to Vietnamese furniture industry and

improving quality of life, Deco-Smart would like to solve the overpopulation issues and

densely populated area in big cities while providing customers the best products and services.

Deco-Smart aims at an efficient workforce, so both managers and employees must

follow the business ethics. They are required to be punctual, cooperative, work effectively

and have good attitudes.

 As a responsible business, the company spends 5% of the revenue each year for

planting more trees in Vienam's forest, taking part in the process of preventing global

warming and climate change.

Deco-Smart implements two types of plan for business goals: Short-term and Long-

term Achievements, to help the company meets the pay-back period, enlarges the market and

spreads out the concept of space-saving among Vietnamese.

The business is run under Limited Liability Partnership to take its advantages in

capitalization, duties allocation, the independence of liability, debts and individual capital

contribution. Head managers are divided as follow:

- General Manager and HR Manager: Formulate policies, manage daily operations, and

plan the use of materials and human resources.

- Marketing Manager: Do market research, manage marketing mix, develop and

implement marketing strategies and plans, and manage customer relationships.

- Sales Manager: Ordering, receiving, changing prices, handling damaged products;

and handling problems and questions from customers; indeed being responsible for

building sales plan, analyzing sales data.

- Accounting and Finance Manager: determining financial impacts due to product cost

reductions, preparing periodic forecasts; doing research and analyzing accounting data

and preparing reports.

- Production Manager: Manage the processes of selecting, ordering and purchasing

materials; designing products; negotiating and managing contracts with suppliers;

prepare inventories; tracking shipments and stock levels; controlling the quality

output which meets the customer demands.

The marketing research is based on the income and educational level of customer,

status of the furniture industry in Vietnam, competitors' information, opportunities and

threats. Target location is Ho Chi Minh City. There are three main competitors which provide

multifunctional furniture in Ho Chi Minh: Noi That Xep Gon, Noi That Nhap Khau, Noi That

Thong Minh TD.

Products features three main values: Core product, actual product and augmented

product.

Designing is crucial for differentiating the product, make-to-order and personal

customization increases the satisfaction of customer. High quality materials are guaranteed.

To save money, time and maximize profit, Deco-Smart uses outsourcing for most parts of the

products.

To set a reasonable price for customer and maximize profit, price skimming,

psychological pricing, bundle pricing and high-low pricing is applied. For distribution, direct

selling is applied for first few years to gain more reputation and profit.

Online promotion and public relation are methods used for the promotion. Many

discount methods are used to improve sales while customer services enhance the loyalty of

customers.

For financing, high cost from variable cost and start-up cost demands the initial

investment of Two Billion Vietnam Dong for the first year. The Partnership shall have a total

initial capitalization of up to Two Billion Five Hundred Million Vietnam Dong

(2,500,000,000 VND) in order to meet the Payback Period in roughly 2.7 years

PART 1: Introduction

o Business name - DECOSMART, it stands for smart decoration.

DECOSMART provides people exceptional products with the

concepts of modern, space-saving, and up to date multi-functional

furniture.
o Business description: Living-spaces in big city in Vietnam are

getting smaller, so our company decide to take actions to address

this problem. Multi-functional furniture is the best solution for this

issue. Our company concentrates on manufacturing and sells our

space-saving furniture directly to consumers. Especially, a product

can perform many functions within its structure. Our manufacturing

is located in NE3 Street, My Phuoc III Industrial Park, Binh Duong

Province while our showroom is situated in 817 Lac Long Quan

Street, Ward 10, Tan Binh District, Ho Chi Minh City.

o Target customer:

The potential customers are people, who are in the age of 25 to 50 years old, lives in

Ho Chi Minh City. Their income level is over 8 million VND per month, especially

clerical workers or owners of small business. With this amount of income they tend to

live in small to medium houses or condominiums, so they want to use portable and

convenient furniture which can save space and perfrom more functions within limited

areas.

o Company advantages:

+ Ho Chi Minh is one of the most populated city in Vietnam with 7,681,700

people and has very high population density- about 3,336 persons per sp.km.

Therefore, this situation creates a big chance for us to

introduce this kind of furniture to a huge numbers of

customers and expand its influences in Vietnam’s furniture

market.

+ Our factory is located in Binh Duong, so the rent payment of

land is cheaper than that of in other province. Besides, we can

 rent a cheap piece of land, which is used as our showroom in

Ho Chi Minh City from one of our partners.

+ We offer really suitable price for our products to customers

because we can employ labors in Binh Duong province at very

low costs. Therefore the prices of products are between $100

and $250, which are much cheaper compared to those

imported from foreign companies.

+ Producing multifunctional and transformational furniture is a

new industry in Vietnam, so we have less competitors in

domestic market. It is one of our biggest strength to develop

and apply our creativity and innovations in this potential

market.

+ Space-saving furniture is suited to temporary trend and it

will easily become the best option for citizens living in big

cities.

o Company disadvantages

+ With limited start-up cost, our company have to make

decisions to allocate our cost suitably.

+ Producing multi-functional furniture is a new market in

Vietnam, so our major weakness are designing and finding

exactly our target customers.

+ We must also have difficulty in delivering materials and

furniture to our customers, we cannot deliver products to our

customers on time in case of traffic jam, so it can have bad

influence on our business trust.

 + Purchasing management is also a big weakness of our

company, we have to ensure materials are delivered on time

under any circumstances.

PART 2: Company & Management Plan

I. The mission statement

1. Mission statement:

To bring inspiration and innovation to furniture industry in Vietnam and

improve quality of life. Our mission is to provide our customers with the best

products, service and support.

2. Ethical issues:

a. In relation to employees of our company:

+ We treat employees with dignity, respect and fairness.

+ No discrimination against employees on the basis of race, religion,

age, nationality, gender or any other personal conditions and different

social conditions of merit and capacity.

+ Do not allow any form of workplace violence, harassment, or

violence.

+ Support to promote professional development and training of

employees.

+ Linking remuneration and promotion of employees with their

conditions of merit and capacity.

+ To ensure health and safety at work.

+ Promoting the participation of workers in the social work program of

the company.

a. In relation to Management functions:

 + To perform its activities in a professional, ethical and responsible

way.

+ Adhere to the ethical requirements rules of the company, make sure

everybody know and establish appropriate mechanisms to ensure

application.

+ Compliance and require compliance with accounting standards and

generally accept principles, establish risk management systems,

internal controls and external matching characteristics of the company.

+ Keep the books and ledgers of the company accurately and honestly,

to allow the information gathered, and decisions made on the basis of

responsible information.

+ Immediately notify the authorities as to any facts or circumstances

that would represent or could give rise to a conflict between the

interests of the company and the personal interests of directors or

managers.

+ Maintain confidentially the background, data and documents which

our employees can access through their positions in the company, even

if they can not be able perform that function.

+ Make payments and implementation of the company's debt without

undue delay or violation, and collect on balance due to the diligence

necessity in each case.

+ Prepare and maintain a plan in place for key positions in the

company, to ensure the continuity of the company is not dependent on

the presence of any director or the director made.

3. Social responsibility:
 We are a part of the world, so we are responsible for protecting the

environment. Global warming is one of the most serious problems that we

have to face recently. All of our products are made by wood, so we decided to

spend 5% of our revenue each year for planting more trees. A sustainable

world can be created by our responsibility.

II. Business goals

o Short-term achievements: (1-2 years)

Net income accounts for 30-35 % of the initial investment

annually. Introduce multi-functional products made by

Vietnam with high quality at reasonable prices to customers.

Spreading out the concepts of space-saving among

Vietnamese.

o Long-term achievements:

To meet the pay-back period within 3 years, expand our

market and target customers domestically and produce more

types of products. Enlarge our factory and showroom.

Cooperate with other multi-functional companies to create

better products with innovative design.

III. Organizational structure:

1. Legal form of the organization: Limited liability

partnership

a. The reasons why we choose this form of the

organization:

+ Furniture business needs a modest amount of capital for beginning

development compared to other types of businesses, while limited liability

 partnership makes the start-up cost and taxation lower, indeed opens

greater venture capital and borrows capacity.

+ Also, there are many important positions in our business such as

production management, marketing management, sales management,

marketing management etc; so partnership is the most suitable form

because managerial duties should be divided equally or separated based on

each partner’s experience.

+ Limited Liability Partnership protects individual partners from personal

liability for negligent acts of other partners or employees who are not

under their direct control.

+ In addition, individual partners are not personally responsible for

company debts and have the authority to decide how they will individually

contribute to business operations.

+ The partnership of the firm is based on a written contract which is duly

sign by all partners of the firm. So by law the firm is operated and

managed by the articles of partnership: Join and leave agreements, profit

and liability agreements, legal actions agreements.

b. Partnership agreement: Attached file.

2. Management team:

a. General Manager and HR manager: Ms. Ninh Thi Trang

Having been studying at EIU for more than 2 years, Ms. Trang has a

lot of experience in Human Resources Management, both knowledge

and practical skills. Furthermore, she also has experience in runing a

business and a depth understanding about furniture market as her

family own a personal furniture manufacturers. Ms. Trang is a good

leader and she knows how to motivate other people, indeed she can

help employees get their job satisfaction from working. Ms Trang has

to formulate policies, manage daily operations, and plan the use of

materials and human resources.

b. Marketing Manager: Mr. Vo Hoang Long

Long is an event-coordinator and his major at EIU is marketing. Long

is creative, flexible, and friendly. Photoshop and graphic design are his

advantages. Mr. Long is expert at advertising, publicity & PR, personal

selling and sales promotions. He is also good at market research which

can benefit the company. Mr. Long has to do market research, manage

marketing mix, develop and implement marketing strategies and plans,

and manage customer relationships also.

c. Sales manager: Ms. Nguyen Thi Hong Loan

Ms. Loan has an interest in sales. Now, she is an online retailer for

many shoes brands such as Nike, Adidas, etc. With knowledge

acquired from university and profound budget, planning and

negotiation skills, Ms. Loan would like to work with our team to

manage the sales department. Ms. Loan will work as company's store

manager and sales director. She has to manage product, which includes

ordering, receiving, changing prices, handling damaged products; and

handling problems and questions from customers. Ms. Loan is also

responsible for building sales plan, analyzing sales data.

d. Accounting & Financial Manager: Ms. Ho Thi Truc Linh

Linh has been studying finance at EIU for a year. She is good at

accounting and preparing monthly analysis cost of goods sold and

 operational expenses against prior year and budget. She can also

provide explanations and business solutions to help mitigate the risks.

She must also partner with Product Manager and Purchasing Manager

in determining financial impacts due to product cost reductions,

preparing periodic forecasts; doing research and analyzing accounting

data and preparing reports.

e. Production Manager: Mr. Vo Van Minh

Mr. Minh can learn a lot from a manufacturing company of his family

in order to help our company. He knows how to manage production

lines and quality output. He also has many close relationships with

suppliers which can benefit the supply chain system of the company.

He has to manage the processes of selecting, ordering and purchasing

materials; designing products; negotiating and managing contracts with

suppliers; prepare inventories; tracking shipments and stock levels;

controlling the quality output which meets the customer demands.

3. Organizational chart:

General
Manager

Accounting &
Marketing Production
Financial Sales Manager HR Manager
Manager Manager
Manager

Staff Staff Staff Designer

Staff
PART 3: Marketing Strategy

I. Market research: Online research

1. Target customer

a. Location: Ho Chi Minh city

b. Age: aged between 18 and 50

c. Income

Salary (VND) Proportion (%)

< 3.000.000 12.35

3.000.000 – 5.000.000 35.77
5.000.000 – 8.000.000 33.46
8.000.000 -10.000.000 7.74
10.000.000 -15.000.000 5.61
> 15.000.000 5.07

d. Educational level

Technical Qualifications
19% Unskilled workers
30%
3% Unskilled and semi-
skilled workers
4%
Skilled craft workers

Vocational certification
10%
Undergraduate degree
34% Professional degree or
higher

2. Our competitors: Three companies listed below also

introduces multi-functional products

a. Noi That Xep Gon: 19 D Nguyễn Hữu Cảnh, P19, Q Bình

Thạnh, TP Hồ Chí Minh

Strength Weakness
- Big company with branches in Ho - Design is unattractive
 Chi Minh City and Ha Noi - High price

- Produce a varied types of product - Do not provide customization in

(desk, table, chair, bed, shoes color and material of the product.

cabinet)

- Professional Online Customer

Service

- Many discount events

b. Noi That Nhap Khau: 1465/31 Lê Văn Lương, Huyện Nhà Bè, Thành

Phố Hồ Chí Minh

Strength Weakness:

- Professional website - Very high price products

- Provide many sets of products - Do not provide customization in

- Provide imported and domestic color and material of the product.

products

- Four showrooms

c. Noi That Thong Minh TD: 61 đại lộ 2, P.Phước Bình, Quận 9,

TP.HCM

Strength Weakness
- Customer service at house (Free - Do not have discount events

assembly) - Limited products

- Normal materials

- Do not provide customization in

color and material of the product.

The furniture industry in Vietnam

+ Vietnam has achieved 20 years of rapid economic development since it

opened its door to international markets widely. In particular, the furniture

industry has advanced significantly and powerful, and the country is fast

becoming an important export base and world-class location for setting up the

furniture factory. Furniture industry has been a significant contribution to the

Vietnamese GDP in recent years. The furniture industry in Vietnam has

converted from a small industry into manufacturing and exporting industry,

which can generate substantial profits for the whole nation. Production clusters

around Ho Chi Minh City currently has about 70% of the 600 largest furniture

manufacturer in Vietnam.

+ Quality management is often neglected in domestic production and only a

small handful of companies hold international certificates. Most products do not

focus on specific segment of furniture manufacture, which makes it impossible

to specialize in certain production. Therefore they do not have the opportunity

to improve their productivity and reduce the cost per unit. Small and medium

enterprises (SMEs) produce furniture, which meet the demands for the global

market, but the relationship with their customers seem to be loose, in most

cases, they completely base on the market.

+ A few domestic manufacturers produce parts or finished furniture components

directly to the supplier of furniture famous abroad called IKEA. Generally,

furniture manufacturers in Vietnam can be ranked into three categories:

1. Small scale plants established and operating by private families.

2. Medium scale companies-local owned.

3. Large manufacturing companies-joint venture and foreign owned.

+ Vietnam has about 2,000 furniture manufacturing in which 15% isfocused on

exporting and sector currently employs around 200,000 workers. According to

official statistics, there are over 1.300 wood processing and manufacturing

factories with a total round wood capacity of 2 million cubic meters per year.

Foreign investment in wood-processing industry, especially furniture industry is

still low, although this field plays an important role in Vietnamese economy.

Around 60 companies with foreign capital currently operate in Vietnam, either

as joint ventures or as wholly foreign owned companies. These companies

typically come from other big countries in the region, e.g. Singapore and

Taiwan. Foreign investments have made it possible technologically to

modernize manufacture, so they bring access to new markets.

+ Despite the global economic crisis, furniture exports of Vietnam still grew in

2012, reaching US$5 million, up 18% compared to 2011. As a result, Vietnam

now ranks the world’s sixth largest furniture exporter and second in Southeast

Asia. Vietnam’s furniture products have been bought by buyers from over 120

countries, while the US, China, EU and Japan importing are our main

customers.
 Furniture exports of Vietnam

13%
The US
5%
39% China
EU
14%
Japan
South Korea
Other countries
14%
15%

o Opportunities that our company faces

In most major cities around the world, people’s living space is getting smaller.

The young tend to go to big cities for greater opportunities and active

lifestyles. However, this phenomenon makes the living conditions in these

areas become worse. High population density leads to many other issues such

as rising house prices and energy costs. They are common problems in urban

areas today. Space-saving furniture is one of the most suitable options to

resolve these problems. Therefore, this is a golden opportunity for our

company to compete to other companies in this industry.

o Threats to our company

+ Threat of Larger Companies and Economies of Scale: Large furniture

companies can make it difficult for our company to attract customers as we

enter Vietnam’s furniture market. Large companies invest significant resources

in marketing campaigns and take advantage of economies of scale, thus they

can easily decrease their manufacturing costs and prices charged to the
 consumer. For example, many large furniture stores in Vietnam as Hoang Anh

Gia Lai, Hoa Phat, Xuan Hoa, Nha Dep, Nha Xinh, have the ability to leverage

their size to lower manufacturing costs and sell furniture at low prices.

+ Relationships Established by Existing Companies: Furniture purchases are

often large expenditures where families look for both exceptional quality and

value. Bigger companies can take advantage of brand recognition and

reputation to attract customers, making it difficult for new furniture stores to

attract a clientele. Furniture stores of any size that have been part of a

community for many years may also pose a similar threat to a new store.

Family and neighborhood connections may have generations of customers

returning to the same store.

+ Strategic Barriers: Strategic barriers are created by existing companies to

prevent other businesses from establishing themselves in the market. These

barriers can be difficult for new furniture companies to circumvent. Creating

barriers based upon exclusivity may result in an anticompetitive environment

and make it difficult for a new furniture store to attract to customers.

II. Product

1. Product’s features and benefit at 3 levels

a. The core product: Multi-functional furniture seems to be the best tool

for people who live and work in limited spaces, so they can save money and

use their living spaces efficiently. Using multi-functional furniture helps to

create some extra spaces to perform other functions of products in same

spaces.

b. Actual product: Protective packing ensures protection against damage. Each

product’s packaging includes content description, company’s branding,

 product name, code bar, instructions and caution. Company divides products

into 2 main groups, make-to-order product and stock products. Stock

products are designed and produced to meet the majority of customers’

demands, while make-to-order products are designed to serve a part of

customers, who have higher income level compared to the rest of customers.

Multi-functional furniture can save space and money for people who live

and work in narrow space areas, performing different functions within a

single product. The product has modern styles and materials reflects and

brightens a room making it feel larger. Furthermore, products are user-

friendly.

c. Augmented product: After buying our product we ensure that we deliver

that product to customers’ places safel. We also provide after sale services

that can help customer to arrange furniture in their apartments and instruct

them the way to use it effectively. Products are guaranteed within 1 year for

customers. If there is any damage during that year, we will offer new

product for them.

2. Differentiating our product: Basing on the theories of

creating actual products. Differentiating product is essential

for us to compete to other competitors. We base on two main

elements, they are the income level of our customers and

product’s characteristics

+ Income level of customers: at which level of price that

customers are willing to buy our products. The prices of

products must be harmonized with their income level.

 + Design and quality: The company creates modern and

elegant design that meet the trend by using high-quality and

up-to-date goods. Personal Customization is applied to

increase customer satisfaction.

Name of Our Product Imported product

product
1. Modern - Price: 8,699,000 VND - Price: 12,000,000 VND (Noi

Space- - Materials: That Xep Gon)

Saving + Walnut Lumber or High - Materials:

Dinning Gloss Acrylic + Walnut combines with

Table + Can be used for 10 or 12 MDF- Venner walnut

people if needed + Can be used for 12 or 14

+ Acrylic material can be people if needed

used as a substitution of

glass. It is safer than glass

for house having small

children, because it is not

easy to break.

+ Acrylic material can also

be used in fluorescent or

light diffusers, so it can

make house become

brightener.

+ There is a variety of
 acrylic material

differentiated by colors, so

it can be used in any kind

of houses.
2. Modern - Price: 3,490,000 VND - Price: 3,999,000- 4,850,000

Wall VND

Shelve - Material: Walnut Lumber ( Don Gian La Dep)

or High Gloss Acrylic - Material: MDF and polished

- Every product is made by 2D- paint.

from Walnut Lumber and - It can be used to separate

Acrylic, so it has high room into small parts or

quality and variable decoration.

designs.

- Each type of product is

also re-designed annually

in order to meet

customer’s demand.

c. Materials and supplies:

i. Designing

- Product must has two features:

 Multifunction

 Modern and elegant

- Make to order and Customization for customer is

allowed.
ii. Production

- Deco-Smart uses outsourcing to produce parts of the

products before assembling them at Deco-Smart in

order to:

 Reduce the cost of purchasing and

maintenance of machines, equipment.

 Reduce the cost of electricity and the cost

of depreciation.

 Reduce the cost of labors used to

transform raw materials to processed

parts.

 Save time and money for designing

department.

- Due to outsourcing, company use little and basic

machines and equipment to assemble parts.

- High-quality goods are used to create products:

 High Gloss Acrylic and Walnut Lumber are

used to create Compact-Dinner Coffee

Table and Modern-Space saving Dinning

Table.
  ABS Plastic is used to create Modern Wall

Out-sourced Walnut
High Gloss Acrylic
ABS Plastic
Shelves and Cube Wall Shelves

- Future products: Each year company will introduce

new products to customers:

 New design of multifunctional tables and

modern shelves

 Transforming sofa-bed

 Compact chairs and desk.

- Production process:

 Buy raw materials

 Transfer raw material to out-sourcing

companies

 Receive out-sourced materials

 Integrate out-sourced goods into finished

products

 Deliver to customers

- To maximize profit, company uses Economic Order

Quantity method and Re-order point method.

iii. Materials is rated based on their high quality not their

cheap price
 - Supply sources are located near the company's

manufacturing place to reduce the shipping cost.

- We consider to purchase metal and paint from reliable

suppliers. After doing price research, we can make

decision to buy these material from the adequate

suppliers.

- Outsourcing – company: CÔNG TY TNHH MTV THƯƠNG

MẠI XNK GỖ THANH BÌNH (44C, KP. Hòa Long, Lái

Thiêu, Thuận An, Bình Dương)

III. Pricing

o Demand-based pricing: Customer’s demand is central element

that help us to set suitable prices for our products. This

strategy includes:

- Price skimming: Set the highest price that customer

willing to buy when furniture market is on the rise.

(during winter, spring, before school, holidays)

- Psychological pricing:

 Odd price is set for most products.

 Use percentage discount instead of absolute

discount.

 Add slight price differences to similar products.

 Emphasize the fairness of the price - Our product

are made from high-quality walnut imported

from the USA.

  Bundle expensive product with expensive

product.

- Bundle pricing: is applied with discount to enhance the

consumption.

o High-low pricing is then applied when the furniture market is

Compact Din
Modern Spac
down – summer.

IV. Distribution

1. Where will customers find our products? We have a

showroom in Ho Chi Minh City, so we directly sell our products

to customers. They can easily find suitable products for their

apartments via visual products displayed in our showroom.

2. Distribution channel and the way to sell our product:

+ At the beginning: We choose to sell directly to consumers.

Limited start-up costs cannot allow us to produce a large

volume of products. We also have difficulty in advertising and

 bringing our products closer to customers. However, we will

create a web page on the internet for advertisement.

+ After 4 -5 years working: We try to expand our

manufacturing and make a network of relationships with our

customers. By that time, we will have chosen to sell through

wholesalers, so we can meet customers’ demands in many

provinces in Vietnam by producing a large amount of

products.

3. The way to deliver our products to consumers.

+ Selling method: Direct selling - To gain reputation and keep

price under control.

+ Products are delivered to customers from the showroom

(small warehouse) in Ho Chi Minh City. Customer service is

provided at the showroom.

+ Products are delivered from the warehouse in Binh Duong to

Ho Chi Minh City in case the showroom in Ho Chi Minh City

does not meet the demand.

V. Promotion
1. Tell people about our products and persuade potential

customers to buy it.

a. Online advertising: Staff establish a company’s fan page

on Facebook and Google+ in which we provide all Deco-

Smart product’s information such as design, price and

size of products. We also open message as well as

receive comments from customers and try to satisfy

their demands. Online Customer Service is put on

priority.

b. Publicity and public relation: Get involved with the social

activities to contribute a small contribution in voluntary

program such as helping children and elderly people in

orphanages or raising funds for protecting the

environment.

c. Sale promotion
 - Discount 10% shipping fee for customers with over

VND 10 million payments.

- Discount 25% shipping fee for customers VND 18

million to VND 25 million bill payments.

- Free shipping within 30km for customers with bill

payments over VND 27 million bill payments - If

customer had already got the “25% discount shipping

fee”, they tend to spend 2 more million to get “Free

shipping package”.

2. Other promotion method.

a. Event discount: We offer a big discount up to 20% for

every product at Christmas Eve, before Tet Holiday and

on the Company’s birthday.

b. Quantity discount: We interact and give an incentive for

our potential customer who order a large amount of our

product like restaurant and coffee owner’s.

c. Loyal customers: We maintain positive relationships

with our customers by giving them a member card

which can up to VIP card when they buy a large number

of our products or they introduce customers to our

company. Send greetings and small gifts to those who

have a member card on their birthday and different

holidays to maintain customer loyalty.

3. Maintain relationship with customers.

- Customer service:
  The company opens Architecture Column in

webpage to provide customers information about

furniture, how to decorate their house and link

those information to the benefit of company’s

product. This provides customers initiative to

buy company’s product.

 Facebook fan page will introduce post about the

famous houses applying Space-saving

Architecture in real life and new space-saving

technology in Architecture Field. This can

enhance the customer’s interest in company’s

products.

VI. Financial Plan

1. Expected revenue: The company categorizes products

into:

a. Tables - Material: Walnut and High Gloss Acrylic (Red,

White)

b. Shelving – Material: ABS Plastic (Blue, White, Black,

Red)

The price of product depends on its model and may

fluctuate when there is discount or sale. The following

table will show clearly the data of estimated first-year

revenue that our business may have:

Compact Din
Modern Spac

2. Costs

a. Fixed Costs (in Vietnam Dong)

Rent

Salary and wa
b. Variable Costs

Outsourced H
Outsourced D
Outsourced A
 3. Startup Costs

Land Rent
Showroom R
Warehouse
4. Capitalization

- Partners of the company decided to get the capital

from their own assets which is less risky than getting a

loan in case the company cannot make profit; indeed

there is nothing value enough to be put up as a

collateral for the bank. However, if the company

desperately need more capital, money contributed by

the Admission of Additional Limited Partners is more

potential than a loan.

- The required capital of DecoSmart is 1,992,680,000

million VND in order to support the start-up cost and

variable cost for the first year.

- The Partnership shall have a total initial capitalization

of up to One Billion Two Hundred Thousand Vietnam

Dong (2,500,000,000 VND).This amount includes the

equity from five individuals. Each Partner shall

contribute the sum of Twelve Million Vietnam Dong

(25,000,000 VND) for each one percent (1%) of

interest in the Partnership (as stated in LLP agreement,

Article III).

 Ms Ninh Thi Trang: 600,000,000 VND – 24%

 Mr Vo Hoang Long: 525,000,000 VND – 21%

 Mr Ho Van Minh: 500,000,000 VND – 20%

 Ms Ho Thi Truc Linh: 437,500,000 VND – 17.5%

 Ms Nguyen Thi Hong Loan: 437,500,000 VND –

17.5%

- In case more capital is needed for further

development, the company's partners can accept:

 Admission of Additional Limited Partners: "A

person may acquire an interest in the

Partnership directly from the Partnership and be

admitted as an Additional Limited Partner only

with the approval of the General Partner and

 fifty-one percent (51%) of all Partners" (LLP

Agreement, n.d.)

 Loan: "No Partner shall loan any money to the

Partnership unless approved by a fifty-one

percent (51%) vote of all Partners." (LLP

Agreement, n.d.)

5. Payback period

Initial Investment Initial Investment 2,000,000,000

Payback period= = =
Annual Net Cash Flow Net Profit + Depreciation 724,417,416+ 18,000,000

6. Income statement: Attached file

7. Balance sheet: Attached file