Cover page

Course Title:
Course Code: F-306

Submitted to: Tazrina Farah
Lecturer
Dept. of Finance
University of Dhaka

Submitted by: Masud Ahmed | | Kazi Umme Sumaiya | 16-022 | Khaleda Aziz | | Akhter-E-Tamanna | | Arjumand Naznin | 16-120 | Shahriar Azad Shashi | 16-142 | Sameya Azad | | Tasrifa Sultana | 16-154 | Mohammad Mominuzzaman Bhuiyan | | Mst. Shamsunnahar | 16-176 |

Date of Submission: 21st Nov, 2012

Letter of Transmittal |

21st November, 2012
Tazrina Farah
Lecturer
Department of Finance
University of Dhaka

Dear Madam
Here is a report on the “New business Idea”. In this report we have presented the whole Market and Demand analysis of our new business of bamboo furniture named ‘Oitijjho- the heritage of Bangladesh ’ .

At University of Dhaka, we appreciate having this assignment. If you need any assistance in interpreting this report or if you have any query, please contact with us on the given mail address starz@yahoo.com
Sincerely yours,

KAzi Umme Sumaiya
On behalf of the group
3rd Year 6th Semester
B.B.A 16th Batch
Department of Finance.

Table of Contents |

Sl no. | Contents | Page no. | 1. | Executive Summary | | 2. | Business Idea | | | 2.1 | Firm & Promoters | | | 2.2 | Why to behave entrepreneurially | | 3. | Industry & Competitive Analysis | | | 3.1 | Introduction to overall furniture industry of Bangladesh | | | 3.2 | Bamboo in general | | | 3.3 | Environmental advantages of bamboo | | | 3.4 | Bamboo furniture versus wooden Furniture | | | 3.5 | Porters five forces model of industry analysis | | 4. | Goals & Objectives | | 5. | Business & Operational Plan | | | 5.1 | Business process | | | 5.2 | Business start-up activities & cost | | | 5.3 | Product line | | 6. | Marketing Plan | | | 6.1 | Target market | | | 6.2 | Market segmentation | | | 6.3 | Marketing Mix | | 7. | Organizational Plan | | 8. | SWOT & Social Cost Benefit Analysis | | 9. | Risk Analysis & Mitigation | | 10. | Financial Plan | | | 10.1 | Proforma Income Statements | | | 10.2 | Proforma Balance Sheet | | | 10.3 | Proforma Cashflows Statements | | | 10.4 | NPV & IRR | | | 10.5 | BEP Analysis | | | 10.6 | Ratio Analysis | | 11. | Conclusion | | 12. | Assumptions | | 13. | Appendix | |

1. Executive Summary |

Bamboo can be seen as a very suitable, eco-friendly and easy usable substitute for wood. But it is considered as an inferior material in Bangladesh. Since bamboo mainly grows in rural bamboo areas where daily income is below $2, - (below poverty line) it is seen as a poor-man’s-material. People don’t even know the difference between bam-boo (a grass) and rattan (a tree) and its distinguished species. This is due to little information and knowledge about bamboo and its possibilities. So we have taken our idea to introduce its possibility. The name of our firm will be “Oitijjho- the heritage of Bangladesh”. We have selected the name because through this business we will manufacture and trade furniture made of bamboo. As well as these environmental advantages, bamboo furniture looks great due to its fine grain that allows for detailed design features. It also is incredibly strong and durable and is highly resistant to warping due to atmospheric changes such as high humidity. Our company will be a private ltd. company with 10 shareholders who will have equal equity and rights in the firm. All the shareholders will provide equal amount of capital and have equal proportions of profit. Before taking this project we have completed a projected market and demand analysis. First we have done industry analysis. Our furniture industry is mostly dominated by the wooden furniture. As entrepreneurs we have decided to enter into the furniture industry with bamboo furniture because it will be both less competitive and creative. Unlike other types of wood, bamboo furniture is resistant to swelling or shrinking due to climate changes. The competitiveness of our industry is being evaluated using the Porter’s five forces model. We have faced threat of existing domestic and foreign as Furniture Company but as we have used local man power and bamboo to produce different types of furniture we can supply them furniture with little cost. We have mainly targeted Household Customer and Institutional Customer. We have also completed an operational and business plan. We assume to start our business within 300 days. Our marketing plan is different than any other company. We not only have furniture in our show room but also we will show different design of furniture of house and resort to the customer and also take customer’s choice. We also give them service as a interior designer. Our organization structure will be a flat one. We have made the proforma income statements, balance sheets and cash flow statements for 5 years. We have also showed the NPV and IRR of our project to show whether our plan is commercially viable or not. We have also showed the financial ratios for the ease of understanding the financial strength of the proposal. A key characteristic of today’s global Furniture market is the speed with which fashion styles and product designs change, resulting in increasingly shorter product life cycles. As we belong to the developing country, this risk is pretty high. Because in Bangladesh, market trends are changing frequently and the product life cycle could becomes shorter like one or two years. Existing renowned companies in Furniture industry are constantly changing their Bamboo furniture with the change in the market trends. As a new Entrepreneur, we want to stay ahead of our competition by replacing old ones with greater frequency than in the past and constantly develop new designs and products. Break-even points out the level beyond which we have to sell our products for earning profit. We have also calculated our BEP which is at 505units. We have calculated the NPV and IRR of this proposal for which we have assumed our discount rate to be 20% with 11% after tax cost of debt and 9% cost of equity. Our calculations suggest that it is an attractive project for investment as our NPV is positive and the IRR is pretty high. We can get back our invested capital within 2 years and several months. After examining all the details, we think that the idea of making bamboo furniture and crafts is very innovative, advantageous and at the same time commercially viable. as entrepreneurs we are very much confident of our project.

2. Business Idea |

2.1. Firm & promoters:
The name of our firm will be “Oitijjho- the heritage of Bangladesh”. We have selected the name because through this business we will manufacture and trade furniture made of bamboo. Firstly it will be a new step to become greener with our home interiors. Secondly, we will use domestic resources and labor for our business. It will be a private ltd. company with 10 shareholders who will have equal equity and rights in the firm. All the shareholders will provide equal amount of capital and have equal proportions of profit. The names of the shareholders are: Masud Ahmed | Kazi Umme Sumaiya | Khaleda Aziz | Akhter-E-Tamanna | Arjumand Naznin | Shahriar Azad Shashi | Sameya Azad | Tasrifa Sultana | Mohammad Mominuzzaman Bhuiyan | Mst. Shamsunnahar |

All the shareholders will provide tk.500,000 as capital individually. So, promoters will provide a total amount of (500000*10)= tk.50,00,000.

2.2. Why to behave entrepreneurially:
A question can come into our mind why we are interested in opening our own business. There are some factors that have made us behave entrepreneurially. The factors are:

Personal Characteristics
Personal Goals
Personal Environment

Decision to Behave Entrepreneurially

Ideas
Business Environment

1. Personal characteristics:
We think it is far better to have our own business than to work under other persons in others’ organizations.

2. Personal environment:
Our family environment is very suitable for entrepreneurial efforts. Some of us have entrepreneur parents. Some of us have close relatives who are entrepreneurs.

3. Personal goals:
All of us want to do our own business. We have a goal to see us as successful owners of a reputed and well known organization. We want to be successful entrepreneurs.

4. Business environment:
Bangladesh is a developing country. There are many business sectors that have not that much developed yet. We have selected such a sector which is handicrafts. Though the political and legal environment is not that much supportive in our country, we all are prepared to deal with this risk for our better future.

5. Ideas:
Today is the age of business. Many business opportunities are there yet to be flourished and many opportunities are being discovered day by day. We thought about many business ideas but we selected to do business of handicrafts as there are much opportunities of success and less competition in this industry. We believe that we will be able to do better in this field.
All the above mentioned forces encouraged us to behave entrepreneurially and open our own organization. 1. Industry & Competitive Analysis |

“Oitijjho” will be organizations that will manufacture and trade bamboo crafts and furniture made by our domestic labors with our domestic resources. We focused on this sector because the furniture industry is a booming industry of our country. Now people have been more interested in different types of furniture other than wooden furniture. People’s taste of furnishing and decorating their homes is changing. Bamboo furniture and crafts have been becoming very popular in our country and in abroad. Moreover, bamboo is a cheap and available raw material in our country. So there is a huge opportunity to shine in bamboo furniture and crafts sector. For assuming the viability of our business we have to look at the furniture industry our country first.

3.1. Introduction to the overall furniture industry of Bangladesh:

Furniture is one of the rapidly growing sectors of Bangladesh constituting of more than 41,500 enterprises all over the country. In Dhaka alone, there are 2000 enterprises producing a wide variety of furniture items and employing over 40,000 workers. In 2007, the total market size was estimated at USD 1.6 billion, with an annual average growth rate of 15-20% over the period of 2000-2005 and a projected growth rate of 23% over the period 2007-2012. Diversity in product portfolio is one of the key strengths of Bangladesh furniture industry. The main varieties are wood, processed wood, laminated board, bamboo, wrought iron and more. Bangladesh’s recent export to US, Japan, Europe, India and other South East Asian countries demonstrated the potential of its expanding export market. Recently ship builders like Western Marine and Ananda have established trade linkages with Bangladeshi furniture manufacturers to receive furniture supply and furnishing materials to meet their export orders. Considering the growth, the furniture sector has been included as a thrust sector in the Bangladesh Industrial Policy 2009 and the Government has extended support to assist and promote this industry through the Export Promotion Bureau of Bangladesh.

Mass urbanization over a short period of time is a defining characteristic of Bangladesh as know it today. While demand in general has gone up for almost all household and lifestyle products, the demand for furniture in particular has had a substantial growth. With urbanites looking for variety and diversity in furniture for their homes and offices, the furniture industry has come onto a market which has enabled them to experiment with different types and styles of furniture along with the materials with whom they are made.

Our furniture industry is mostly dominated by the wooden furniture. As entrepreneurs we have decided to enter into the furniture industry with bamboo furniture because it will be both less competitive and creative. Let’s have a look on bamboo, its production and its usefulness.

3.2. Bamboo in general:
Bamboos are plants of enormous importance to the rural people in several regions of the world, but there usefulness is great in Bangladesh. In Bangladesh bamboos are used for construction, scaffolding, ladders. Matt, baskets, fencing, tool-handles, pipes, toys, fishing rods, fishing traps, handicrafts etc and for several other articles for everyday use. In some parts of the country, the bamboo leaves are used as thatching materials and it is a good fodder. For tropical countries, bamboo is one of the important raw materials for paper industries. Considering the wide range of uses as construction material, it is called the “poor man’s timber”.

Did you know that bamboo provided the first re-greening in Hiroshima after the atomic blast in 1945? And Thomas Edison successfully used a carbonized bamboo filament in his first experiment with the light bulb. Bamboo can be seen as a very suitable, eco-friendly and easy usable substitute for wood. There are over 1000 species of bamboo on the earth. The diversity makes bamboo adaptable to many environments. The plant tolerates extremes of precipitation, from 30-250 inches of annual rainfall. It is also the fastest growing woody plant on this planet.

It grows one third faster than the fastest growing tree. Some species can grow up to one meter per day. One can almost “watch it grow”. This growth pattern makes is easily accessible in a minimal amount of time. It can be harvested in 3-5 years versus 10-20 years for most softwood.

The sum of stem flow rate and canopy intercept of bamboo is 25% which means that bamboo greatly reduces rain run-off, preventing massive soil erosion. Its anti-erosion properties create an effective watershed, stitching the soil together along fragile river banks, deforested areas. Product wise the material is very strong: Bamboo’s tensile strength is 28,000 per square inch versus 23,000 for steel. The basic manufacturing of bamboo doesn’t require special skills or expensive tools. Since it almost grows everywhere, has good material characteristics and is easy to manufacture it is very suitable for agricultural and crafting approaches for rural communities. It is an important mean for generating income and improving the nutritional status of poor and disadvantaged people. The climate of Bangladesh is very suitable for growing bamboos. There are almost 22 species under 9 genera of bamboos produced in Bangladesh. Bamboos occur in the eastern and southern part of Bangladesh. Bamboos are woody grasses that grow up to 15 meters tall. Naturally occurs in pure and mixed with trees.
Major species of bamboo are Muli (Melocanna Baccifera), Mitenga (Bambusa Tulda), Dalu(Neohouzeaua Dullooa), Orah (Dendrocalamus Longispathus), Kalichari (Oxytenanthera Nigrociliata) etc.

There are many bamboo species and varieties and over 100 of them are commonly cultivated. Depending on the genetic characters, species vary in growth and development pattern and in their response to environmental conditions.

A list of the 19 most commercially important clump-forming species (tropical and subtropical) with their uses is given below. Selection must also take into account prevailing environmental conditions. INBAR is presently producing a species-to-site matching database and this is available via the INBAR website. * Species and main uses: * B. balcooa: Construction, implements, pulp, fodder. * B. bambos: General purpose, construction, shoots, pulp, furniture, medicine, windbreak. * B. blumeana: General purpose, furniture, chopsticks, handicrafts. * B. polymorpha: Construction, pulp, shoots. * B. textilis: Weaving, landscaping, * B. tulda: Construction, shoots, pulp, handicrafts, musical instruments. * B. vulgaris: Construction, furniture, pulp, ornament, handicrafts. * C. pergracile: Thatching and walling, furniture, handicrafts, weaving. * D. asper: Construction (very good quality), furniture, handicrafts, musical instruments, shoots. * D. giganteus: Construction, pulp, furniture, handicrafts, shoots. * D. latiflorus: Construction, shoots (very good), furniture, weaving, ornamental * D. strictus: Construction, pulp (very good), utensils, fodder. * G. apus: Construction, handicrafts, utensils,. * G. levis: Construction, utensils, pulp. * G. pseudoarundinacea: Construction, handicrafts, utensils, chopsticks, shoots (v. good). * G. angustifolia: Construction (very good) * M. baccifera: Weaving, construction, shoots. * O. species: Pulp, construction, handicrafts. * T. siamensis: Construction, shoots, pulp, handicrafts, ornamental.

3.3. Environmental advantages of bamboo:
Bamboo can be seen as a substitute for wood, since it grows faster and lends itself to easy agricultural approaches in many different climates and in this manner it can prevent the scarce natural source of wood from being depleted. Apart from this, bamboo growth can also results in healing degraded land, stopping soil erosion and helping in drought-proofing. It has an underground root-and-rhizome system that effectively binds the top one foot soil that is critical for soil health. Bamboo is a critical element in maintaining the balance of oxygen and carbon dioxide. Carbon gets trapped within bamboo forests, thus reducing carbon dioxide gases. It also lowers the intensity of light and protects us from harmful ultra-violet rays. In addition, it sequesters carbon and releases approximately 35% more oxygen than comparable hardwood trees. Bamboo forests nurture wildlife. Apart from the endangered panda, the most famous symbol of bamboo forests, many birds, monkeys and boars depends on bamboo shoots.
A problem that is recently occurring in China is the harvesting of wild grown bamboo in nature with the result of endangering this local fauna. In India small farmers cut their bamboo in their jungle backyard for an extra income. Although when harvested with care it is possible to cut wild bamboo without harming the environment (cutting one bamboo culm results in three new ones), most people don’t know this. That’s why awareness programs have been set up. Also several bamboos nurseries have been implemented. The nurseries grow shoots of the most suitable available species of bamboo and sell these to farmers so they can grow their own crops. In the end this will improve quality of the harvested grass.

Bamboo versus Wood:
If anyone has considered going green with his home decorating, but he is not sure where to begin, bamboo is a stylish and affordable choice. Not only is bamboo strong, inexpensive and visually appealing, it’s renewable! Adding bamboo furniture to one’s home is a simple way to help him become more environmentally friendly.

Bamboo is technically a grass and in many places, it is considered to be a weed. It is a hardy plant that is found on almost all continents and can be grown in many diverse climates and conditions. Bamboo grows quickly and spreads across areas, which is why it is often thought of as a weed. When bamboo is cut, it sends up new shoots to replace those that have been removed and those shoots can mature in just five years. Compared to other hardwood species, which take at least 50 years, bamboo is extremely renewable. An added bonus is that bamboo does not need fertilizers or pesticides to grow, making it an organic product also.
Bamboo has been used to make all kinds of products from food to fabrics to paper and construction materials. It has actually been used longer for making construction materials and furniture than any other hardwood. There are all kinds of different styles of furniture to choose from that are made from bamboo, ensuring one will find something that will match the current decor of his home.
3.4. Advantages of Bamboo Furniture over Wooden Furniture:
There are many different reasons for choosing bamboo furniture when decorating one’s home. On top of the obvious environmental advantages, the following is also true of bamboo furniture: * It is extremely durable and can withstand damage a lot more than traditional hardwoods. This is why bamboo is often used for cutting boards as it can take a lot more strokes from a knife before becoming scratched and marked. * Bamboo grows in a straight line, unlike trees with knuckles that actually strengthen, not weaken, the bamboo shoots. This makes bamboo, and anything made from it, very strong. It is often used to also strengthen other materials. * Unlike other types of wood, bamboo furniture is resistant to swelling or shrinking due to climate changes. * Bamboo has a very fine grain, allowing it to come in a variety of styles and finishes. Designers use bamboo in all kinds of innovative furniture designs so your personal style does not need to be compromised. * Bamboo furniture can be used indoors or outdoors and is very easy to care for. You can clean your bamboo furniture as you would any other hardwood furniture. All you need to pay particular attention to is avoiding prolonged exposure to moisture.

3.5. Porter’s Five Forces Model for industry competitiveness analysis:
The competitiveness of our industry is being evaluated using the Porter’s five forces model
Force 1: Threats of existing firms:
The furniture industry is in boom in our country. So, we have decided to enter into this sector as there is a huge opportunity to excel in this field. Again, we selected to do business in bamboo furniture and crafts bearing in mind the usefulness and demand of bamboo and its products. Though the furniture industry is developing in our country, the whole industry is mainly concentrated in wooden furniture. There are very few enterprises that deal in bamboo furniture. In our country the produced bamboos are exported to Germany, England, Netherlands, Australia and United States (US). Those counties use these bamboos to make furniture and other things made of bamboos and earn more income. Instead of exporting the bamboo we can process them and turn them into lucrative furniture, crafts; and then we can export them earning a huge income. As there are very few enterprises that are producing some bamboo made furniture, we think that there is no direct big competitor of our business. Yet, we have to compete with the enterprises that produce wooden furniture. We have to create the demand for our product. The facts that should be noted here are; * People’s tastes and concepts are changing todays. Now people don’t concentrate their choice of furniture only in wooden things. People’s choice has been more diversified. They are now more attracted towards fashionable and creative furniture. So it will be not that much difficult to create demand for our products. * We will be using bamboo which grows abundantly in our country and our local labor which is very cheap in comparison to other countries. Moreover bamboo is far cheap than wood. So, it will be easy for us to earn and retain our profit.

Force 2: Threats of new entrants:
As there is small number of competitors the risk of entering into the industry will be low. Profits can be made and retained easily. But we have to strengthen our marketing policies to create a demand for bamboo furniture and crafts.
Force 3: Threats of substituting products:
This risk is pretty high in our case as there are a lot of substitutes to bamboo furniture and crafts. We think the wooden furniture will be the biggest threat. People are used to buying furniture made of wood for their durability. But, if properly processed bamboo can last for a long time. And again we have mentioned before that people’s thoughts and tastes are changing. So, if we try we think we can motivate people for our products.
Force 4: Buyers bargaining power:
There are to conditions here: * Price sensitivity: It refers to whether the buyers want to bargain. Furniture is a thing of people’s need. But today it is not only a matter of need, for many people it has become the way of reflecting their taste, status and aristocracy. In some case it has become the way of reflecting their tradition. People generally do not bargain when buying furniture and home decorative. Moreover, we will offer our products within a price range for both medium income level and higher income level. * Bargaining power: As there are not so many enterprises that offer bamboo-made furniture the power of bargaining of people will be less. Moreover, the bamboo furniture will be cheaper than the wooden furniture. So, people will have less or no incentive to bargain.
Force 5: Bargaining power of suppliers:
We will purchase bamboo from the domestic farmers who produce bamboo. When our business will expand we will produce bamboo in our own land so that our cost of raw materials will be less than before. So the bargaining power of the supplier will be less in our case.
Here the five forces of Porter are shown in a tabulated form: Forces | Proposition | Profit Generating Capabilities:Moderate | This analysis shows the firm can generate a steady growth of earnings also it is able to retain its profit. | Intra Industry Rivalry | Moderate | | | Threat of
Substitutes | High | | | Entry
Barriers | Low | | | Buyer
Power | Low | Profit retention Capabilities:High | | Supplier
Power | Low | | |

2. Goals and Objectives | |

Goals and objectives describe what the program or project is striving to accomplish. We have also set some goals and objectives for our bamboo furniture business. Those are:

Short Term goals

Long Term goals

| * To enlarge the business geographical area. * To monopoly the furniture market in Bangladesh. * To cultivate bamboo after 5 or 6 years operation of business. | | * To maintain the quality. * To make only marginal profit to catch the market in initial stage. | Strategic objectives

| * To satisfy customers by providing new designs with good quality. * To promote our heritage through the products so that we can attract the foreign customers. * To empower destitute rural women by providing opportunities for employment and income generation. * To create a cooperative society for the employees and provide them incentives. | Marketing objectives

| * To offer lower price than wooden furniture. * To offer discount on some products during special occasion. * To open more outlets within the country like in Chittagong division as well as other countries. | Financial objectives | * To capture at least 15-20% of market share in the first year of operation. * To catch up a growth of around 25% on an average of profit and revenue (based on our calculation). | 3. Business & Operational plan |

5.1. Our business process: As “Oitijjho” will be dealing in bamboo furniture and crafts there will be a variety of products that will be offered by it. We have to build up an on going processing system for turning the bamboos into attractive furniture and crafts. Here is our operational plan discussed in short: 1. Purchasing Bamboos: Our main raw material is bamboo which will be purchased from Gazipur. In Gazipur there is a huge production of bamboo. Other raw materials like glue, rope, glasses, pins etc will also be purchased from the available sources. 2. Sending bamboos to factory: After purchasing the bamboo and other raw materials our next task will be to send the raw materials to our factory in Savar for processing which will be not very far from the collection site of bamboo. For transportation hired trucks will be used. 3. Processing bamboos: Bamboos need to be processed before turning them into furniture. There will be two phases of processing bamboos. There will be three tinshed factory houses for the processing of bamboos. a. Pre-construction phase (factory house no.1): One house will be used for the pre-construction activities. The main activities of pre-construction are pealing skin, removing knots, preservation and conserving, length sawing, splitting and bending whole bamboo and slats. b. Furniture construction, assembly and Post-construction phase (factory house no.2): Post-construction consists of sandpapering and applying varnish. The construction and assembly of the bamboo is done in the second factory house. Around six different types of bamboo construction methods are used and all of them are similar to wooden construction techniques. c. Crafts making phase (factory house no.3): Besides furniture we will also produce crafts for home decoration like lamps, flower vases, wall mats, fences etc made of bamboo. So for this purpose we will use our third factory house.
Most work is done by hand using sizzles, hammer and hack saw. Small electrical equipment, like a column drill and hand drills, is also used. A full time (construction) designer will be directing most of the projects. In special occasions professional architects or constructors are approached. 4. Transporting the products to the showroom: after production we need to transport the products to our showroom in Mirpur, Dhaka. We have selected SA Paribahan as a way of transportation.

5. Selling to the customers: On the reception of the products we will arrange the products in our showroom with their price tags. So, people can choose easily what they want according to their level of income. We will arrange our products in two section- a) simplicity (furniture and crafts with plane design ranging from tk.300 to tk.30,000) b) aristocracy (furniture and crafts with extra-ordinary design ranging from tk.1000 to tk.80,000)

The whole processing of our business is illustrated here through a chart:
Sending raw material (bamboo) to the Savar factory
Pre-construction processing of bamboo in factory house no.1
Furniture construction, assembly and post construction work in factory house no.2
Crafts construction and post construction work in factory house no.3
Purchasing raw material (bamboo) from Gazipur

Providing designs

Selling to the customers
Transporting the products to the showroom through SA Paribahan

6.2. Business start-up activities and cost:

Serial number | Start-up activities | Time | Cost (Taka) | 1. | Plan preparation | 60 days | | 2. | Registration fee | 5 days | 6000 | 3. | Trade License | 3 days | 7500 | 4. | Advance for contract farming | 30 days | 30,000 | 5. | Application for loan and loan processing fee | 45 days | 25,000 | 6. | Land and Site development | 60 days | 350,000 | 7. | Recruitment and training cost | 30 days | 200,000 | 9. | Advance for showroom | 37 days | 30,00,000 | 10. | Others | 15 days | 100,000 | Total = | | 300 days | 37,18,500 |

5.3. Our product lines:
We will be producing attractive, durable and stylish bamboo furniture and crafts. Here are the samples of bamboo products and crafts with their relative prices that we will be manufacturing: Bamboo Furniture | Bamboo sofa sets with small tablesPrice- tk. 10,000-60,000 | | Bamboo dining setsTk.15,000-50,000 | | Bamboo chairsTk. 1000-3000 | | Bamboo bedsTk. 12,000-80,000 | | Bamboo shelvesTk. 8000-30000 | | Bamboo cupboards and wardrobesTk. 15,000-70000 | | Bamboo room dividersTk. 4000-8000 | | Bamboo Crafts | Bamboo lampsTk. 800-3000 | | Bamboo wall matsTk. 300-1000 | | Bamboo basketsTk. 300-1000 | | Bamboo photo framesTk.300-800 | | Bamboo showpiecesTk. 300-2000 | |

There are many more crafts that can be made of bamboo like bamboo trays, bamboo candle holders, handfans, pen holders etc. We will expand our product line as our business expands. We will also offer the customers an opportunity to select designs from our design books. We will produce furniture and crafts as per our customer’s requirements.
Bamboo furniture line will also be expanded as the demand of our products increase. There are many more kinds of furniture that are made of bamboo. We will always try to blend modern designs in our products. When we will be able to fulfill our domestic demand we will go for the export of our products.

We will also contract with new restaurants, hotels and resorts for their interior decorations with bamboo. Now the owners of hotels, restaurants and resorts are very much eager to make there places look attractive. They are very much interested in fashionable and stylish bamboo interiors. Here is a sample of bamboo interior of a restaurant:

Nowadays these types of extra-ordinary interior designs with environment friendly things have become a trend of modern age. It is simple, aristocrat and stylish at the same time.

6. Marketing Plan |

6.1. Our target market: Our target market is quite big. In our bamboo furniture business we have two main types of customer one is Household Customer and another is Institutional Customer. As Household we targeted middle class, upper middle and high class of our society and as Institutional Customer we targeted hotel, motel, restaurant, cottages office and showrooms. Our business is not only limited to furniture we will also decorate and designs interiors.
We know that we have the largest sea-beach of the world. For that we have many sea-shore hotels, resorts, cottages. We targeted those as our institutional customers. In environmental issues, poverty reduction, rural communities and durability bamboo has a great benefit.

6.2. Market segmentation: After identifying our target market our Partnership firm will be manufacturing furniture and Decorating designing interiors that appeal to that section of market.
6.3. Marketing Mix: Our four P's of marketing mix includes product, price, promotion and place. Our following shows how Our Partnership firm is planning to use our marketing mix to promote and sell our products.
a. Product mix
Variety: There will be a lot of variety in the product line. We will manufacture furniture and Decorating designing interiors for household and Institution. From which anything can be selected by the customer according to his or her choice or need. We will also design exclusive product considering special need specimen. Such as:
Quality: The quality of the products will be superior and of international standards as the Partnership firm will also be exporting them in future.
Design: There will be a variety of designs in each category. We will hire Designers to design product.
Sizes: The products will be available in different sizes and Styles and also according to the demand and specimen.
Features: Many and new sophisticated designs, size, fashion will cover many income group, institution and tastes.
Brand name: The brand name of our organization will be “Oitijjho”.

b. Price mix
Fixed price: The prices of are products will be given with the product on a price tag .i.e. is there is no bargaining, sold in fixed price.
Discounts: Special cash discounts will be given to our clients on special occasions like Eid, Puja, etc. and also discounts for bulk purchases.
Payments: cash, check, Debit and Credit card payment will be the accepted as modes of payment. These will also be useful in case of international transactions in future.
Credit terms: No credit facility will be given to customer.

c. Promotion mix
Advertising: Product advertisements will be given in Bill boards, local newspapers, distribution of pamphlets and through word-of-mouth awareness. Advertisements will also be given on Television but after one or two years. We also build up a website for our organization where all the information regarding our products will be provided. We hope we can give online shopping facilities in future. As we know a huge number of people are connected with the internet it will work as good advertisement policy.
Sales focus: Sales focus will be towards middle class, upper middle class and high class of our society for household and hotel, motel, restaurant, cottages office and showrooms as institutional customer.
Direct market: All products will be sold in our showroom. Our main and first showroom will be in Gulshan then Banani, Mirpur, Dhanmondi. We will also make a showroom in Chittagong within two years.

d. Place mix
Channels: We will directly sell in our showroom and in future we will export our product as our business expands. The products will also be displayed in exhibitions in many fair like Trade fair. We will also organized fair in other town like Chittagong, Cox’s Bazar etc.
Coverage: The coverage area would be now in Dhaka, then big towns like Chittagong, Cox’sBazar, Khulna etc. and then outside the country.
Location: The location will be now in our main showroom Gulshan. The reasons for the outlet at Gulshan are as follows:
This is one of the fashion capitals of Bangladesh. The target market for our product is the upper middle class, middle class and high class. Products are designed keeping the target customer in mind. Dhaka has the highest number of shoppers in Bangladesh.

7. Organizational Plan |
The business as mentioned earlier will have ten partners. The structure will be a flat one. They will be equal partners who will bring in the capital necessary for the starting of business. The sources of capital and its disbursement are already given above regarding the initial capital. The partners will look and run the business in equal measure.
Duties and responsibilities of the partners:
Masud Ahmed: Marketing Manager. He will manage our promotion and market advertisement.
Khaleda Aziz: Sells Manager. She will set the projected sells and try to achieve.

Tasrifa Sultana: Accounting Manager. She will manage reporting the transactions.

Akhter-E- Tamanna: Production Manager. She will manage product line and its production and responsible for the amount of raw materials required for desired amount production and cost of production.

Arjumand Naznin: Production Manager. She will also manage product line and its production and responsible for the amount of raw materials required for desired amount production and cost of production.

Sameya Azad: Supervisor: She will be responsible for supervising the employees with their works and the transportation of the products of factory 1.

Mst. Shamsunnahar: Supervisor: She will be responsible for supervising the employees with their works and the transportation of the products of factory 2.

Kazi Umme Sumaiya: Supervisor: She will be responsible for supervising the employees with their works and the transportation of the products of factory 3.

Shahriar Azad Shashi: Finance Manager. She will be responsible for determining sources of funds and the proper disbursement of these collected.
Mohammad Mominuzzaman Bhuiyan:
Quality control manager. He will be responsible for the controlling quality of the product at the predetermined level.

Reasons for succeeding in the Business
There are some reasons for which we think we can succeed in this business. They are;
If anyone has considered going green with his home decorating, but he is not sure where to begin, bamboo is a stylish and affordable choice. Not only is bamboo strong, inexpensive and visually appealing, it’s renewable! Adding bamboo furniture to one’s home is a simple way to help him become more environmentally friendly. * General improvements involve the using of bamboo nails instead of iron nails. Iron nails will get rusty after a while and this will affect the product quality and durability in a negative way.

* Secondly the cane bindings should not be used at all. Market research shows that already after one year of use these bindings start to come off. This affects not only the looks but also the whole image of the bamboo. People see it as a fact of indurability and that’s not true since these bindings are mainly used for aesthetic reason (hide iron nails) and they don’t add to the product strength. From a Western perspective a chair without binding looks more appealing because the product doesn’t seem to be kept together by strings.

* A third change comes from the artisan corner. They suggest using the Mannga, bamboo, instead of Kanak, for the making of the shaped slats. Mannga is better to manufacture and looks better. When producing these special curved splits, different malls should be used in which the revered position is calculated and tested. * It is extremely durable and can withstand damage a lot more than traditional hardwoods. This is why bamboo is often used for cutting boards as it can take a lot more strokes from a knife before becoming scratched and marked. * Unlike other types of wood, bamboo furniture is resistant to swelling or shrinking due to climate changes. * Bamboo furniture can be used indoors or outdoors and is very easy to care for. You can clean your bamboo furniture as you would any other hardwood furniture. All you need to pay particular attention to is avoiding prolonged exposure to moisture.

8. SWOT & Social Cost- Benefit Analysis |

Here is the SWOT analysis of our business plan where we have shown all the strengths, weaknesses, opportunities and threats relating to our business:

Strengths 1. Small number of competitors 2. Large number of suppliers 3. Wide range of products 4. Available raw materials 5. Low labor cost 6. No use of heavy and expensive machinery | Weaknesses 1. Low capital 2. Small production capacity 3. More substitutes 4. Declining growth of bamboo cultivation | Opportunities 1. Increasing demand for bamboo furniture and crafts 2. Opportunity for exporting 3. Opportunity of infusing modern design with domestic resources 4. Cheap manpower | Threats 1. Poor political and legal conditions 2. Competition with well established wooden furniture manufacturers. 3. New entrants in the market 4. Foreign established industry of bamboo furniture. |

Social Cost-benefit Analysis:

Social costs: * Initial investment needed is Taka 10, 000,000. This money could be used in other projects. This opportunity cost is a social cost. * If we sell our processed goods some of our competitors of substitute product will lose their market share.

Social Benefits: * People can fulfill their utility with exclusive design than other. * People can support their own culture with exclusive taste. * People will be discouraged to foreign products. * People can get updated designs within own country utilizing domestic resources and culture. * It will help to balance our environment. * More Durable than wood. So wood cutting will be discouraged.

9. Risk Analysis & Mitigation |

Market Trends Change Risk:
A key characteristic of today’s global Furniture market is the speed with which fashion styles and product designs change, resulting in increasingly shorter product life cycles. As we belong to the developing country, this risk is pretty high. Because in Bangladesh, market trends are changing frequently and the product life cycle could becomes shorter like one or two years. Existing renowned companies in Furniture industry are constantly changing their Bamboo furniture with the change in the market trends. As a new Entrepreneur, we want to stay ahead of our competition by replacing old ones with greater frequency than in the past and constantly develop new designs and products.

Demand risk:
There is a worldwide Demand for Bamboo furniture and in Bangladesh, it’s not different. For its large demand, the price is also growing high. We are going to introduce bamboo goods with contemporary styling—sophisticated, stylish products. We can get through the demand risk by ensuring quality. We are trying to maintain a strong control and mentoring over our business so that others cannot capture the whole market. As we are producing Bamboo furniture in a low cost and our selling price is low, the risk of reduction in demand is low in this sector.

Quality risk:
As we have said before, quality assurance is a big factor in this business. So, if our product is not up to the mark comparing to the others in the furniture market we will soon lose our market. So, we think it is the risk to which we will have to look at all the time.

Consumer’s choice change Risk or Differentiation Risk:
Recently we have observed that consumers change their taste recurrently and they want to use differentiated products. To differentiate products we will have to work with new materials and techniques and artisans. It will be a big challenge for new entrepreneur to match up with the consumers taste. Moreover, There are a lot of substitutes to bamboo furniture and crafts. So, in the Bamboo furniture’s business this risk is pretty high.

Technological risk:
The project involves very low-tech process. So, the risk of getting the technology obsolete is low.

Strategic Risks:
Changes of customer’s demand are common in Bangladesh. Now people don’t concentrate their choice of furniture only in wooden things. People’s choice has been more diversified. They are now more attracted towards fashionable and creative furniture. As Bamboo furniture’s are fashionable and newly introduced in Bangladesh, we need to bear moderate cost in R&D for introduce more new products . So, this risk is moderate .

Compliance risks:
In Bangladesh Market trends are changing continuously. So, the need to act in a manner which customers expect is important. So, For our Bamboo Furniture business this risk is moderate.

Financial risk :
For assessing Financial risk, we will definitely take into account external factors such as interest rates and foreign exchange rates. Because, Rate changes will affect our debt repayments and the competitiveness of our goods and services compared with those produced abroad. At present, the trading terms we choose, it takes longer to receive payment and there is a wide change in Interest rate in our country.
As we will involve in international trade in Future, we have to face even greater financial risks. So, that time it can be more difficult to assess the creditworthiness of an overseas client and to recoup unpaid debts.

Operational risks:
Because, labor and transportation cost in our bamboo furniture business is not huge. As we mentioned earlier that after purchasing the bamboo and other raw materials we send the raw materials to our factory in Savar for processing which is not very far from the collection site of bamboo. For transportation hired trucks will be used. This risk is low. Moreover we don’t need to use advanced machineries to develop our products.

Cash flow risk:
We've considered various risks - things like cash flow, what happens if a member of staff leaves, if someone decides to sue us, or if our computers go down. We have put in place a basic, written, action plan for each so that if they happen it is not so much of a crisis.

Risk of Competitor’s better performance:
This risk is very low for our business. Because we will be up-to-date with the competitor’s performance to minimize our risk. As there are small numbers of competitors the risk of entering into the industry will be low. Profits can be made and retained easily.
If our website and database were lost, it would represent three years' worth of work. Our technology is so vital that our systems are backed up two times. We have a back-up server in the house and one in the office.
We also look carefully at our insurance policies annually, assess where our risk is and make sure that we are covered for those eventualities.
Finally, we are diversifying our risk by increasing service lines in to three services so that we can be compensated in case of failure in one arena.
Major Risk Area that are to be considered :

Name of the risk | Level of the risk | Market Trends Change Risk | pretty high | Demand risk | low | Quality risk | low | Consumer’s choice change Risk | pretty high | Technological risk | low | Compliance risks | moderate | Financial risk | high | Operational risks | low | Cash flow risk | moderate | Risk of Competitor’s better performance | low |

10. Financial Plan |

In this section we have showed all the forecasted financial plans. We have made the proforma income statements, balance sheets and cashflow statements for 5 years. We have also showed the NPV and IRR of our project to show whether our plan is commercially viable or not. We have also showed the financial ratios for the ease of understanding the financial strength of the proposal. All our calculations for preparing these statements are attached with this report in the appendix section.
10.1. Income Statements: Proforma Income Statement | | 1st year | 2nd year | 3rd year | 4th year | 5th year | Sales | 8,580,000 | 19,265,000 | 29,215,000 | 44,190,000 | 68,885,000 | Less: COGS | 3,343,750 | 7,706,000 | 11,686,000 | 17,676,000 | 27,554,000 | Gross profit | 5,236,250 | 11,559,000 | 17,529,000 | 26,514,000 | 41,331,000 | Less: Administrative &selling expenses | 4,026,925 | 9,054,550 | 13,731,050 | 20,769,300 | 32,375,950 | EBIT | 1,209,325 | 2,504,450 | 3,797,950 | 5,744,700 | 8,955,050 | Less: Interest | 887,500 | 776,563 | 665,625 | 554,688 | 443,750 | EBT | 321,825 | 1,727,887 | 3,132,325 | 5,190,012 | 8,511,300 | Less: Tax | 120,684 | 647,958 | 1,174,622 | 1,946,255 | 3,191,738 | Net profit | 201,141 | 1,079,929 | 1,957,703 | 3,243,758 | 5,319,563 | less: Dividend | 30,177 | 215,986 | 391,541 | 648,752 | 1,063,913 | Retained earnings | 170,964 | 863,944 | 1,566,163 | 2,595,006 | 4,255,650 |

10.2. Balance Sheet: Proforma Balance Sheet | ASSETS &PROPERTIES | Items | 1st year | 2nd year | 3rd year | 4th year | 5th year | Current Assets | | | | | | Cash and bank balance | 1,267,086 | 2,553,518 | 6,612,852 | 8,480,083 | 14,522,262 | Accounts receivables | 429,000 | 963,250 | 1,460,750 | 2,209,500 | 3,444,250 | Prepaid expenses | 536,658 | 771,942 | 829,838 | 892,075 | 958,981 | Other current assets | 1,110,395 | 500,000 | 475,000 | 485,000 | 235,000 | Total current assets | 3,343,139 | 4,788,710 | 9,378,440 | 12,066,658 | 19,160,493 | | | | | | | Fixed Assets | | | | | | Machinery & equipment | 540,000 | 540,000 | 540,000 | 540,000 | 540,000 | Office equipments | 770,000 | 770,000 | 770,000 | 770,000 | 770,000 | Land & building | 2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 | Other fixed assets | 4,002,500 | 4,002,500 | 4,002,500 | 4,002,500 | 4,002,500 | Total fixed assets | 7,312,500 | 7,312,500 | 7,312,500 | 7,312,500 | 7,312,500 | Total assets | 10,655,639 | 12,101,210 | 16,690,940 | 19,379,158 | 26,472,993 | | | | | | | LIABILITIES & EQUITY | Current liabilities | | | | | | Current portion of LTD | 625,000 | 625,000 | 625,000 | 625,000 | 625,000 | Accounts payable | 175,000 | 892,500 | 2,641,063 | 2,905,169 | 3,195,686 | Accrued expenses | | 489,127 | 2,364,131 | 2,843,237 | 6,015,905 | Total current liabilities | 800,000 | 2,006,627 | 5,630,194 | 6,373,406 | 9,836,591 | Long term liabilities & equity | | | | | | Bank loan | 4,375,000 | 3,750,000 | 3,150,000 | 2,500,000 | 1,875,000 | Accumulated depreciation & amortization | 309,675 | 309,675 | 309,675 | 309,675 | 309,675 | Equity capital | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | Retained earnings | 170,964 | 1,034,908 | 2,601,071 | 5,196,077 | 9,451,727 | Total long term liabilities & equity | 9,855,639 | 10,094,583 | 11,060,746 | 13,005,752 | 16,636,402 | Total liabilities | 10,655,639 | 12,101,210 | 16,690,940 | 19,379,158 | 26,472,993 |

10.3. Cashflows Statements: Statements of Cashflows | | 1st year | 2nd year | 3rd year | 4th year | 5th year | Beginning balance | 3,000,000 | 1,267,806 | 2,553,518 | 6,612,852 | 14,843,443 | Cash inflows: | | | | | | Sales | 7,293,000 | 16,375,250 | 24,832,750 | 37,561,500 | 58,552,250 | Loan | 5,000,000 | | | | | Personal Loan | 2,000,000 | | | | | Debtor receipts | 858,000 | 1,926,500 | 2,921,500 | 4,419,000 | 6,888,500 | Total cash inflow | 18,151,000 | 19,569,556 | 30,307,768 | 48,593,352 | 80,284,193 | | | | | | | Cash outflow: | | | | | | Capital expenses | 2,824,000 | | | | | Cost of raw materials | 926,000 | 2,311,800 | 3,505,800 | 10,605,600 | 22,043,200 | Wages | 2,304,000 | 2,304,000 | 2,304,000 | 2,304,000 | 2,304,000 | Factory overhead cost | 113,750 | 308,240 | 467,440 | 1,767,600 | 2,755,400 | Preliminary expenses | 3,718,500 | | | | | Administrative expenses | 4,026,925 | 9,054,550 | 13,731,050 | 20,769,300 | 32,375,950 | Office equipment | 770,000 | | | | | Interest paid | 887,500 | 776,563 | 665,625 | 554,688 | 443,750 | Loan payments | 625,000 | 625,000 | 625,000 | 625,000 | 625,000 | Income tax | 120,684 | 647,958 | 1,174,622 | 1,946,255 | 3,191,738 | Prepaid expenses | 536,658 | 771,942 | 829,838 | 892,075 | 958,981 | Dividends | 30,177 | 215,986 | 391,541 | 648,752 | 1,063,913 | Total outflow | 16,883,194 | 17,016,039 | 23,694,916 | 40,113,269 | 65,761,931 | Ending balance | 1,267,806 | 2,553,518 | 6,612,852 | 8,480,083 | 14,522,262 |

10.4. NPV & IRR:
We have calculated the NPV and IRR of this proposal for which we have assumed our discount rate to be 20% with 11% after tax cost of debt and 9% cost of equity. Our calculations suggest that it is an attractive project for investment as our NPV is positive and the IRR is pretty high. We can get back our invested capital within 2 years and several months.

NPV | 13,936,804 | IRR | 59% | Payback period | 2.01years | Discounted payback period | 2.07years |

10.5. Break-even Analysis:
Break-even points out the level beyond which we have to sell our products for earning profit. It is the point where there is no gain no loss. We have also calculated our BEP which is at 505units.
As we have products of different categories we used the average variable cost, average selling price for the calculation. Relevant calculations are shown in the appendix. Here we have represented the BEP graphically:

10.6. Ratio Analysis: Sl | Ratio | Reference | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | 1 | Return on investment | Net profit/Total investment | 2.01% | 10.80% | 19.58% | 32.44% | 53.20% | 2 | Gross profit margin | Gross profit/Net sales | 61.03% | 60.00% | 60.00% | 60.00% | 60.00% | 3 | Operating profit ratio | EBIT/Net Sales | 14.09% | 13.00% | 13.00% | 13.00% | 13.00% | 4 | Net profit margin | EAT (Earnings after tax)/Net sales | 2.34% | 5.61% | 6.70% | 7.34% | 7.72% | 5 | Interest coverage ratio | EBIT/Interest expense | 1.36 | 3.23 | 5.71 | 10.36 | 20.18 | 6 | Acid test ratio | Quick assets/Current liabilities | 2.12 | 1.75 | 1.43 | 1.68 | 1.83 | 7 | Current ratio | Current assets/Current liabilities | 4.18 | 2.39 | 1.67 | 1.89 | 1.95 | 8 | Debt to equity ratio | Total debt/Equity | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 9 | Return on asset | EAT/Total assets | 2% | 8.92% | 11.73% | 16.74% | 20.09% |

11. Conclusion |

In this report we have presented our business idea of bamboo furniture and crafts. We have discussed what our plan is, why we have chosen it, what are the advantages, what our products would be, what will be our business process, what are our estimations regarding its financial strengths. After examining all the details, we think that the idea of making bamboo furniture and crafts is very innovative, advantageous and at the same time commercially viable. as entrepreneurs we are very much confident of our project. If it is executed properly, it will be a success.

12. Assumptions |

For making these report we had to make some assumptions. But, we tried to be realistic with our assumptions as far as possible. Here those assumptions that we made for this report: 1. The business will run its operation for infinite time period. “ Going Concern Principle” will be followed by our company. 2. For making the financial analysis relevant international accounting standards and current laws and rules of Bangladesh have been maintained. 3. According to NBR we have to pay 37.5% as income tax as our organization is a non-publicly traded company. 4. Around 20% of the profit will be paid as dividend and the rest of the profit will be retained 5. Depreciation of all fixed assets has been charged according to “Straight-line method”. 6. Wages and Transportation costs are assumed by reasonable forecasting. 7. We will provide a one month credit facility for our customers. 8. We have decided to maintain accounts receivable at 5% of the total sales. 9. We assumed our loan repayment system to be “Equal principal repayment” method. 10. We assumed our cost of goods sold to be 45% and administrative and marketing cost to be 40% of total sales for the forecasted period.

13. Appendix |

13.1. Sales forecasting:
Year 1 Description of product | Quantity | Total sales | Bamboo sofa sets | 10 | 500,000 | Bamboo room divider | 40 | 180,000 | Bamboo dining tables | 12 | 420,000 | Bamboo beds | 8 | 560,000 | Bamboo cupboards | 15 | 900,000 | Bamboo shelves | 20 | 560,000 | Bamboo dressing tables | 12 | 300,000 | Bamboo chairs (Household) | 50 | 100,000 | Bamboo wardrobes | 8 | 480,000 | Bamboo tables &chairs (Restaurants & resorts) | 200 | 4400000 | Bamboo crafts | 150 | 180,000 | Total | | 8,580,000 |

Year 2 Description of product | Quantity | Total sales | Bamboo sofa sets | 20 | 10,00,000 | Bamboo room divider | 70 | 315,000 | Bamboo dining tables | 40 | 14,00,000 | Bamboo beds | 15 | 10,50,000 | Bamboo cupboards | 20 | 12,00,000 | Bamboo shelves | 30 | 840,000 | Bamboo dressing tables | 20 | 500,000 | Bamboo chairs (Household) | 80 | 160,000 | Bamboo wardrobes | 20 | 12,00,000 | Bamboo tables &chairs (Restaurants & resorts) | 500 | 11000000 | Bamboo crafts | 500 | 600,000 | Total | | 19,26,5000 |

Year 3 Description of product | Quantity | Total sales | Bamboo sofa sets | 30 | 1500000 | Bamboo room divider | 100 | 450000 | Bamboo dining tables | 70 | 2450000 | Bamboo beds | 25 | 1750000 | Bamboo cupboards | 35 | 2100000 | Bamboo shelves | 50 | 1400000 | Bamboo dressing tables | 25 | 625000 | Bamboo chairs | 120 | 240000 | Bamboo wardrobes | 35 | 2100000 | Bamboo tables &chairs (Restaurants & resorts) | 700 | 15400000 | Bamboo crafts | 1000 | 1200000 | Total | | 29215000 |

Year 4 Description of product | Quantity | Total sales | Bamboo sofa sets | 60 | 3120000 | Bamboo room divider | 130 | 560000 | Bamboo dining tables | 110 | 4180000 | Bamboo beds | 40 | 2800000 | Bamboo cupboards | 50 | 3050000 | Bamboo shelves | 80 | 2400000 | Bamboo dressing tables | 40 | 1080000 | Bamboo chairs | 200 | 500000 | Bamboo wardrobes | 40 | 2400000 | Bamboo tables &chairs (Restaurants & resorts) | 950 | 21850000 | Bamboo crafts | 1500 | 2250000 | Total | | 44190000 |

Year 5 Description of product | Quantity | Total sales | Bamboo sofa sets | 100 | 5200000 | Bamboo room divider | 200 | 1000000 | Bamboo dining tables | 200 | 7600000 | Bamboo beds | 80 | 5600000 | Bamboo cupboards | 100 | 6100000 | Bamboo shelves | 120 | 3600000 | Bamboo dressing tables | 80 | 2160000 | Bamboo chairs | 350 | 875000 | Bamboo wardrobes | 70 | 4200000 | Bamboo tables &chairs (Restaurants & resorts) | 1200 | 28800000 | Bamboo crafts | 2500 | 3750000 | Total | | 68885000 |

14.3. Description of Assets: Asset | Quantity | Price(BDT) | Durability | Depreciation | Land & building (Factory) | 5 katha | 20,00,000 | 5 years | | Machinery & equipment: (Including installation cost) | | | | | (1) Cutting machine | 3 pieces | 50,000 | 10 years | 5000 | (2) Peeling machine | 2 pieces | 250,000 | 20 years | 12,500 | (3) Splitting machine | 3 pieces | 225,000 | 20 years | 11,250 | (4) Others (Saw, pin, machete etc) | As required | 15,000 | | | Total cost of machinery & equipment | | 540,000 | | 28,750 | Office & showroom equipment:(Including installation cost) | | | | | (1) Furniture | As required | 200,000 | 10 years | 20,000 | (2) Computer | 4 pieces | 140,000 | 10 years | 14,000 | (3) Generator | 1 piece | 170,000 | 10 years | 17,000 | (4) IT Support (Local Area Networking) | | 10,000 | 10 years | 1000 | (5) Air cooler | 3 pieces | 240,000 | 10 years | 24,000 | (6) Other accessories | | 10,000 | | | Total cost of office & showroom equipment: | | 770,000 | | 76,000 | Other fixed assets: | | | | | Trademark | | 224,000 | 16 years | 14,000 | Technical know-how | | 60,000 | 12 years | 5000 | Start-up costs | | 37,18,500 | 20 years | 185,925 | Total other fixed assets | | 40,02,500 | | 204,925 | Total fixed assets | | 73,12,500 | | 309,675 |

14.4. Cost of raw materials: Description of raw material | Quantity | Unit | Unit price (Taka) | Cost (1st year) | Bamboo | 4000 | Pieces | 225 | 900,000 | Preservative | Boric acid | 100 | kilogram | 4 | 400 | | Borax | 150 | kilogram | 4 | 600 | Water | | 5000 | Liters | 5 | 25,000 | Total = | | | | 926,000 |

14.5. Factory overhead cost: Serial number | Description | Cost (1st year) | 1. | Utilities | 70,000 | 2. | Depreciation | 28750 | 3. | Repair and maintenance | 10,000 | 4. | Others | 5000 | Total = | | 113,750 |

14.6. Production cost: Serial number | Description | Cost (1st year) | 1. | Cost of raw materials | 926,000 | 2. | Factory overhead cost | 113,750 | 3. | Wages (Direct labor) | 23,04,000 | Total = | | 33,43,750 |

14.7. Workforce engaged: Cost 1st year | Indirect labor | Taka | Designation | Number of person | | | Manager | 1 | 420,000 | | | | | 420,000 | Accountant | 1 | 252,000 | | Showroom in charge | 1 | 246,000 | | Sales persons | 4 | 576,000 | | Guards (Semi-skilled) | 1 | 72,000 | | Total | 7 | | 11,46,000 | Direct labor | | | Factory in charge | 3 | 432,000 | | Skilled workers for processing operations | 15 | 14,40,000 | | Unskilled workers for processing & maintenance | 6 | 432,000 | | Total | 24 | | 23,04,000 | Total employees | 32 | Total salary and wages | 38,70,000 |

14.8. Administrative and Marketing expenses:

Serial number | Description | Cost (1st year) | 1. | Depreciation of office equipment | 76,000 | 2. | Amortization | 204,925 | 3. | Salary (Indirect labor) | 15,66,000 | 4. | Office rent | 600,000 | 5. | Office utilities | 60,000 | 6. | Telephone | 6000 | 7. | Advertisement | 15,00,000 | 8. | Stationeries | 10,000 | 9. | Others | 4000 | Total = | | 40,26,925 |