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Social Business Plan

In: Business and Management

Submitted By paperplane
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Pages 23
INTRODUCTION

Normally Bangladesh is country where most people suffer from malnutrition. There are lots of people who suffer from this problem, to eradicate every government take many steps. But not always every step bears fruits. In most cases these steps wont work. Because of lack of monitoring and awareness efforts. The government efforts are given;
The public health nutrition program under the Ministry of Health and Family Welfare of Bangladesh is operated through Institute of Public Health Nutrition (IPHN) and two major programs under the Health, Nutrition and Population Sector Program (HNPSP). These two programs are Micronutrient Supplementation (MS) and National Nutrition Program (NNP).

The IPHN and MS work under the Directorate General of Health Services (DGHS) and the NNP works directly under the ministry.

Conventionally the director of IPHN works as the line director of MS, and nutrition programs of both IPHN and MS are carried out under one platform. The programs include: (a) Control of micro-nutrient deficiencies focusing nutritional blindness of vitamin A; (b) Control of Protein Energy Malnutrition (PEM); (c) Control and prevention of iron deficiency and other nutritional anemia; (d) Control of iodine deficiency disorders and other micronutrient problems; (e) School health nutrition education program targeting school children; and (f) Revitalization of existing baby friendly hospitals. The programs of IPHN and MS cover the entire country.

The coverage of NNP, on the other hand, is in 172 upazilas, which will be scaled to 232 upazilas by 2011 and to all 483 upazilas by 2021. In NNP program area, satellite community nutrition center is operated 6 days a week, one per 1,200 people. One lady community nutrition worker runs the nutrition center. There are 36,764 community nutrition workers for the 172 upazilas and 3,732 community nutrition organizers, 960 field supervisors and 172 upazila managers. The target populations of NNP’s nutrition programs are: (a) under-2 children; (b) pregnant and lactating mothers; (c) newly married couples; (d) adolescents boys and girls; and (e) in-laws and

(f) husbands of pregnant women. The latter two target groups are for advocacy. The services include nutrition supplementation of malnourished children and all pregnant and lactating women; monitoring weight of under-2 children and pregnancy weight gain; training; behavior change communication; and food security interventions through vulnerable group feeding as well as through encouraging people for homestead gardening and poultry farming.

In Bashundhara Residential just beside the campus of North South University there is slum entitled as Taltola Slum. Primarily our Social Business Plan is targeted for the people who are living in the Taltola Slum. And after observing and surveying the area we have found out that the people of Taltola Slum are also suffering from malnutrition. So through our social business plan we will try to solve the problem of malnutrition of these poor people.

Vision
Malnutrition in Bangladesh, in simple mathematical terms, is among the highest in the world. More than 54% of preschool-age children, equivalent to more than 9.5 million children, are stunted, 56% are underweight and more than 17% are wasted. Malnutrition among women is also extremely prevalent in Bangladesh showing more than 50 percent of women suffering from chronic energy deficiency.

(Source: http://www.fao.org/ag/agn/nutrition/bgd-e.stm)

The above mentioned scenario calls for products that may address the problem of malnourishment. With the poverty rate being extremely high as well, the food item must be cheap so that it remains affordable to the poor population of Bangladesh. And that is why the vision of our business will be – “Eradicating malnutrition to build a better nation through a well-defined sustainable and profitable social business”

Mission
Bounce is the perfect protein supplement in the form of biscuit for children to address the problem of malnutrition. Its high rich protein ingredient Spirulina needs to be consumed at a very low level ranging from 1 to 10 gram per day, to fulfill daily protein need. One packet of Bounce supplements the protein need of 2 children a day. With price as low as taka 7 per packet, it is quite affordable for the lower and lower middle class income groups. So, the mission of our venture is going to be – “Eliminating protein deficiency from the underprivileged inhabitants of Bangladesh”

Objective
Our social business is focused on removing protein deficiency from the poor and underprivileged people of our country by providing them protein concentrated energy biscuits. But as most of the population over here live below poverty line, the biscuits are thus produced from Spirulina which will ensure the affordability of the people. Now what is Spirulina? Spirulina is an aquatic micro-organism with exceptional nutritional characteristics. Spirulina are multi-cellular and filamentous blue-green microalgae belonging to two separate genera: Spirulina and Arthrospira and consists of about 15 species. It grows in water, can be harvested and processed easily and has significantly high macro- and micronutrient contents.
So, the objectives of our social business will be based on the health benefits of Spirulina – * Getting rid of malnutrition and protein deficiency * Fighting Night Blindness & Other Vitamin Deficiency Diseases * Preventing anemia and iron deficiency * Mitigating Arsenic Poisoning * Benefitting farmers and empowering women

INDUSTRY ANALYSIS

Analysis of competitors

There are hardly any protein biscuit available in the rural market within the reach of the poor people. The protein content of the biscuits that are readily available in the market is very low compared to a high protein biscuit. Some of the nutritional facts can be seen from the table below –

Biscuit | Protein (gm/100 gm) | Biscuit | Protein (gm/100 gm) | Olympic Energy Plus | 7.30 | Horlicks | 9.5 | Olympic Tip | 7.05 | Olympic Crackjack | 7.72 |
Table 1: Protein content of widely available biscuits and other sources

Now, let us look at the daily consumption of food items by the rural people. The protein content of these are listed below –

Item | Protein (gm/100 gm) | Item | Protein (gm/100 gm) | Rice (average) | 7.3 | Chicken | 25.9 | Pulses (Moog) | 24.5 | Egg | 10.3 | Pulse (Masur) | 25.1 | Milk | 3.2 | Beef | 22.6 | Lal shak | 5.3 | Hilsha | 21.8 | Biscuit (sweet) | 6.4 | Banana | 7.0 | Biscuit (salted) | 6.3 |
Table 2: Protein content of daily food
(Source: Statistical Pocket Book Bangladesh 2008, Page394, 395)

The protein amount of some of these sources is high enough but these are not consumed regularly to meet the daily protein need of children. Therefore always there is the prevailing problem of malnutrition among the children. The shortage in the supply of high protein sources at low cost creates an unmet demand which could be addressed by our product.

Market segmentation
We divide the market on basis of age and need mix. Different age group has different degree of needs of Spirulina

Vulnerable groups | Daily requirements | Infants (from 6 to 24 months ) | 1 g of Spirulina every day for 90 days | Children ( from 2 to 5 years ) | 1 g of Spirulina every day, or minimum 90 days | Children ( from 6 to 15 years) | 2 g of Spirulina every day, or minimum 90 days | Pregnant and lactating mothers | 5 g of Spirulina every day | Severe malnutrition and HTV/AIDS-affected persons | 5-10 g of Spirulina according to their well-being |

(Source: Sustainable Approaches to Combat Malnutrition by Urs Heierliwith support and contribution from Enis Von Der Weid, Page 36)

Target Market
On basis of segmentation, we are targeting children, primarily aged between 6 to 15 years old, whose buying decision is fully or partially influenced by their mother or family members. As our product will be cheaper than the other protein sources, the price sensitive segment consisting of the low and lower middle income groups will be inclined to buy our product.
Income of Consumers
On average, the income of our target group customers family vary between taka 4000 to 5500. The product will be positioned as a tasty protein supplement biscuit. The product will be targeted towards children so branded in terms of taste and health benefits.

Industry and Market forecasts

Overview of the biscuit Industry

The analysis of the overall market for toast biscuits has revealed that the growing market has been exhibiting the following stable trends over the last few years

* Breakfast is the least important meal, particularly in urban parts of the country. Convenience is the key factor. * The competition in the biscuit market is stiff with more and more players entering the market. * Branded and non-branded biscuits both prevail in the country .Unpackaged products attract consumers with low unit price, variety of choices and freedom in mixing at the same unit price and paying by weight * The market is geographically segmented to a great extent * The consumers are price driven, looking for value for money working mothers, it has become a very popular Tiffin for children and evening snack for the family as it is cheap and a suitable snack with tea * Health awareness concerns have driven people to choose low calorie foods. Dietetic products, products with reduced content of greases and cholesterol and natural products are widely sought after * Since all the products are priced in around a cluster , the consumers tend to be brand loyal * Always an profitable product since it is traditionally incorporated into the eating habits of some individuals

The basic needs for biscuit market are instant availability, appetizing and healthy product, and different flavors. These needs can be further put into categories based on the prices and alternative ingredients of the biscuits
In Bangladesh, we use biscuit mostly with morning tea or snack purposes for the children as well as for other members of the family in school, work and at home. In these cases variation of tastes and quality of the product comes in action. When the children are given biscuits as lunch at school, they prefer to have some added taste and variety to their food. This is one of the many reasons why Pran captured market share so quickly and also for this reason most of the companies come with more than one flavoring.
Another factor is availability. Consumers frequently go to market with a blank mind. In this cases retailer references or availability is a dominant factor in creating new consumers and holding on to existing customers. This also follows that the market is geographically segmented.
Recently, in our country, there have been changes in the role of women in a family. Today, a lot of mothers living in the urban areas of the country are working mothers and they play a vital role in family’s income and purchase decision making. For the working mother, the time and the process of preparation of foods are quite important. Working mothers prefer a quick and hassle-free method of presenting snacks. And thus, a rise in the number of working women has also induced the need for food products that are easy to manage.
Another important factor is the overall build up of awareness of the nutritious values of food products. The anti-contamination campaigns undertaken by the government has rung an alarm in individuals purchase behavior. People are more conscious about harmful ingredients and foul process of manufacturing . This means that people are expecting sincere behavior from companies in the market for food product.
Sugar-free biscuits for diabetics, digestive biscuits for adults, calcium-rich or vitamin-rich biscuits for children and high-fiber biscuits for the health conscious group have emerged in the market. In general there is an overall tendency in people to favor low calorie food items to avoid. Although people are not fully aware of the ingredients they are prepared to pay slightly higher prices for quality ingredients.

PESTLE ANALYSIS
Political & Environmental Factors
The country political and environment is currently volatile so business will hamper.
Economic Factors
According to the World Bank Bangladesh Economic Update, the real GDP (Gross Domestic Product) is projected to grow at around 6.2% in the fiscal year 2011 up from 5.8% in the fiscal year 2010. This means that the domestic demand would remain strong with consumption expenditures receiving a boost from increased public and private wages and investment has likely to have increased as well. On the other hand inflation is rising; the consumer price index stands to be 10.5% in March 2011 which has been significantly contributed by a rise in food prices which is 13.9%.
Social Factors * There has been a cultural transmission in Bangladesh. * Gone are those days where Bangladesh were considered orthodox. * The people are not hesitant to try out new things. * Even the quality of life has improved which has led people to spend more.
Technological factors * Automation in Bangladesh is widespread in most industries. * Even for manufacture of biscuits the imported machinery is available which will help in * Mass production and reap benefits of economies of scale. * So the technological knowhow and equipments are available for development of the biscuits industry.
Legal Factor
There is no legal factor and trade restriction of setting up a biscuit factory in our country.

The Porter’s Five Forces Analysis * Bargaining power of suppliers: Moderate * Bargaining power of customers: High * Threat of new entrants: High * Threat of substitutes: Moderate * Competitive rivalry between existing players: Moderate

ABELL’s Framework

* What consumer’s need:
The people of kolatoli slum are mainly poor people . Mostly there income is poor so they want to fulfill their basic human needs.

* How can the need be fulfilled: They want food which is high protein, high-in-nutrients.

* How our organization can fulfill the need:
Bounce Biscuit is s high protein, high-in-nutrients biscuit that contains 10% of Spirulina, is a low-cost, protein and vitamin rich micro-lge. The high nutritional value of Spirulina means Bounce biscuit is an ideal supplement of protein, and effective in preventing diseases such as night blindness and anemia. Low cost of production for Spirulina also means that price of the product can be kept within the reach of the lower income groups.

SWOT Analysis
Strengths
* Brand Image: We will have a strong branding campaign so we will have a string brand image

* Unparallel Distribution Network: The entire network is owned by the company itself, which includes delivery vehicles, people, storage etc.

* Highest quality ingredients: Bounce Biscuit contains ingredients of the highest quality, and is beneficial for health. As compared to competitor’s product, it does not contain harmful contents such as monosodium glutamate, testing salt etc. Different herbal ingredients are used in the product.

* Fully automated production: Bounce Biscuit is the only company of having their entire production process going for full automation. Currently, some of elements in the production process occur manually, but most of the machineries are being imported and are going to be set up within the next month.

Weaknesses * Low capacity: Bounce Biscuit has been recently launched with limited capacity in terms of production. As a result, their overall production is significantly low.

* Low awareness: Bounce Biscuit is a new product as a result, consumers still do not have enough knowledge about the presence of the product in the market.

* Labor Dependency: Although Bounce Biscuit is going for full automation within the coming months, the production process is still dependent on manual labor input. There are issues of hygiene, negotiation with labor unions, shortage of skilled labor, etc.

Opportunities * High market rate growth: Currently, market growth rate is steadily increasing as there is a huge demand from the middle-class and lower-class people. Although many competitors are present to meet this demand, there is still enough untapped market for Bounce Biscuit to utilize.

* Scope of Export to neighbor countries: There is a demand within the sub-continent region, especially in India and Pakistan. As a result, there is an opportunity for the export of Bounce Biscuit to the foreign market.

Threats * Low entry barrier for new firms: There is relatively low or no entry barriers for new firms to enter into the market. Much like Bounce Biscuit, other companies can easily the market and utilize the untapped market potential for the market. This would intensify the competitive scenario of the energy biscuit industry.

* Strong established competitors in the market: Market leaders such as Parle G, Energy Plus have already secured significant market share in the market. There is a persistent threat of the competition securing more of the untapped market share.

* Fluctuations in raw material price: Raw materials are constantly becoming more expensive to purchase. As a result, the company may be forced to increase the price of the product itself in the market to compensate for the increased production cost.

* Presence of alternative products: In the current market, more alternative products such as chips, chanachur etc. are becoming more popular for the consumers, especially in the urban market. These consumers prefer these other products, rather than Bounce Biscuit

Production and Operations
Spirulina will produced by farmers located in Jaipurhat through contract farming system. We will contract the farmers to produce specific amount of every month. The farmers will be organized by NGOs already working in Jaipurhat. The monthly requirement in the first year is 600 Kg. So in order to have adequate supply of Spirulina 60 farmers have to cultivate Spirulina in 0.7 acre of space throughout the year. The farmers will be paid a predetermined price, the market price at the time of contracting. Women will encouraged to part in Spirulina cultivating activities as it requires little manpower and time.
The Value Chain
The Process in Brief: farmers will produce Spirulina on contract farming basis. They will be coordinated by local NGOs who will collaborate with the company. Other ingredients necessary for making the biscuit will be purchased from regular suppliers. Manufacturing and packaging of the "Bounce" biscuit will take place in the biscuit factory located in Jaipurhat. The finished product will then be distributed in two ways: 75% of it will be given to professional distributors to reach retail marketers, while 25% total production will be distributed through village women, who will engage in door-to-door sales.

Biscuit Manufacturing Process
Automated Biscuit making process involves five basic stages namely mixing, forming, baking, cooling and packing.
Mixing: This is a process where all ingredients are put together in right proportion for dough formation. These ingredient are then fed into Mixers where mixing is done and dough is prepared for molding
Molding: In this section we laminate the dough into sheet which then passes down to gauge rollers and sheet thickness is achieved for cutting. Here we have a cutter or a molder as per the variety where one gets the shape and sizes of biscuits.
Baking: This is the area where we pass these molded wet biscuit into baking oven .The biscuits are baked on desired temperature s..Heating of biscuit is done by conduction; convection and radiation inside the oven .Dampers are provided to control moisture inside the oven section. Different heating profiles are maintained for different varieties of biscuit.
Cooling: These baked biscuits are then passed on to cooling conveyors for natural cooling prior to packing .The temperatures are brought down to room temperatures .Natural cooling is preferred over forced cooling as it maintains the texture quality of biscuit.
Packing: These biscuit are then stacked and fed into packing machine for packing. Different packing material are available for packing of these biscuit in different packs .slug packs, pouch pack or family packs etc. These packs are then put into secondary packaging like cartons to be transported to retailers.

Description of the Machine: Components & Functions
The machine equipments required for the biscuit production line, as well as the functions they perform is mentioned below

Mixing Stage:
Horizontal dough mixer
Function: This machine is suitable to mix all types of biscuit dough and to blend other raw materials. Continuously and equable dough mixing can be achieved.

Molding Stage:
Laminator
Function: The laminator has functions of sheeting, fat spreading and laminating. For getting high quality of sheets, it is completed with the HF400 type biscuit-shaping machine for pre-treating the dough. First rolling the sheet, and then feeding it out perpendicularly. In the course the sheet is equably laminated in many layers. The sheets get multiplayer and high surface quality and little change. It is necessary for the production of high quality hard biscuit (soda crackers and fermentation biscuit).
Sheet forming and cutting machine
Function: This machine reduce the dough several times to a required thickness and print the biscuit design on the continuously fed sheet and cut out the individual dough pieces. For hard biscuit.
Including gauge roll (with hopper), gauge roll /2/3, rotary cutter, rest conveyor and panner, connecting parts.
Rotary molder
Function: the rotary molder produces biscuit shapes of soft dough products. The forcing roll pulls dough from the hopper and presses it against the molding roll to fill a series of biscuit impressions engraved on the roll periphery. Excess dough is removed by a scraper on the molding roll's surface and is returned to the hopper by adhesion to the forcing roll.
Salt sprinkler
Function: coat the top of the goods with granular materials such as salt or sugar or sesame. It may be mounted on several parts of the line.

Baking Stage:
Oven Drive and Oven Tension
Function: this unit includes oven drive drum and oven tension and tracking drum. The principal function of oven drive is provided the drive to oven band. The tension drum provides a turning point for the oven band at the feed end. It gives constant tension for the band and allows for any expansion or contraction of it.
Tunnel Type Biscuit Backing Oven
Function: the tunnel type electric biscuit baking oven is an important part of the line. It's made up of oven chamber, heating system, fully automatic temperature control system. It is suitable to every biscuit baking techniques.

Cooling and Finishing Stage:
Peeling Machine
Function: this unit strips the biscuit by a stripper knife from the oven band and transfers them to the oil sprayer; in this case the residue is removed.
Oil Sprayer
Function: this unit sprays oil on surface of the biscuit out of the oven. The quality of color, taste and smell is ameliorated. The nozzles atomize the oil and equably spray them on biscuit surfaces. The quantity of oil is adjustable. The excessive oil is filtered when the sprayed biscuit sent by its wire band.
Cooling Conveyor
Function: biscuits leave the oven in a hot plastic state and need to be cooled to achieve stability and facilitate handing. Cooling conveyor carry the hot biscuits for an appropriate length of time and their configuration are designed to suit the available space.

Packing Stage:
Packing Conveyor
Function: provide a table for handling biscuit. Formed steel section side plates are connected by stretchers.
Packaging Machine
Function: Applicable for packing various solid regular objects such as biscuit or loaded by box/tray etc.

Process | Machine 1 | Machine 2 | Machine 3 | Machine 4 | Mixing | Horizontal dough mixer | | | | Molding | Laminator | Sheet forming and cutting machine | Rotary molder | Salt sprinkler | Baking | Oven drive and oven tension | Tunnel type biscuit baking oven | | | Cooling | Peeling machine | Oil sprayer | Cooling conveyor | | Packing | Packing conveyor | Packaging machine | | |

Organizational Plan Founder
The four members of our group will be the founders and form a partnership company. Management Team
The management team will consist of one director, one marketing manager, two contract forming agents, two Spirulina quality control officers and one accountant. The detailed responsibility is given in the annex. Factory Workers
A total of 13 factory workers will be needed to operate the machines. They will be properly trained up by professionals.

Designation | Number | Educational Qualification | Responsibility | Director | 1 | | Responsible for monitoring the whole operation of the company | Marketing Manager | 1 | BBA\ Bachelor in Marketing | To watch over the entire distribution and sales process | Contract Farming Agent | 2 | Bachelor Degree | To communicate the traits of contract farming to the farmers, persuade them to enter into contract, and supervise the whole process | Spirulina Quality Control Officer | 2 | B.Sc. in Food and Nutrition Studies\ Microbiology | To ensure that desired quality of the product is maintained | Factory Supervisor | 2 | Mechanical Engineering | To ensure production process,including the machineries andother components of value chain function smoothly | Manager – Finance & Accounting | 1 | Bachelor in Finance & Accounting | To maintain the books of account |

Structure

MARKETING PLAN Product
The product is called Bounce: a tasty protein supplement biscuit for children. The quality of the biscuit will be certified under standard BDS 383:2001 of Bangladesh Standards and Testing Institutions (BSTI). By type, it will be a sweet biscuit having 10 % Spirulina (weight/weight) in each as the main protein ingredient. Each packet will weight 40 grams and have 10 biscuits, resulting in a weight of 4 grams per biscuit. The dimension of each biscuit will be 7 cm 3.5 cm 0.4 cm. One packet of Bounce meets the daily protein supplement requirement of 2 children between 6 to 15 years. The biscuit will be made with ingredients and production process of a popular tasty energy biscuit known as Bounce with added tasteless supplement of Spirulina.
Logo

Tag Line “Nutritious food at affordable price.”
Pricing
The factory price per packet of biscuit will be set at taka 5 and the retail price will be taka 6 which is affordable, for the low income groups. The distributor will enjoy a margin of 13% and retailer a margin of 7%, which is higher than the regular rate, generally set at 10% and 5% respectively.

Place
The place of marketing will be kolatoli bazaar Two distribution channels will be used – * women will be appointed to sell the biscuits from door to door. A margin of taka 1 per packet will be allocated for her. * Local distribution channel is to be used to supply the biscuit to local stores, tea stalls and groceries.

Promotion
Several promotional activities will be undertaken at different phases of the business to promote the product. * Direct door to door promotion and selling. This will continue round the year. The benefits of Spirulina as well the biscuit will be conveyed to the mothers of each household. * Posters, leaflets, calendars for shops to create a buzz in the local market. * Free samples at schools for the first three months, in each Saturday, biscuit samples will be distributed in schools. * Promoting at sports related children's activities. These biscuit will be promoted in all kinds of sports programs of children arranged in the locality * Hospitals/clinic and doctors: Hospitals could be a major place to promote the products. Pens, writing pad will be provided to doctors to maintain relationship and they will be told about the high nutritional values of the biscuits, so that they could convey the message to the patients. * Promote through NGOs: Collaboration with NGO's from year to convince the local people about the health benefits of Spirulina People We will use local people for the promotion and some of the people will work.
Process
The distribution and production method will be the process ( add production chart )
Physical evidence
There is lots of physical evidence , the machine for the production , packaging will be the physical evidence.

Activities to Achieve Objectives
The pre-defined objectives of our social business will be achieved mostly through the manufacturing, distribution and sales of our product that is the Spirulina biscuits. They are described in detail below

Getting rid of malnutrition and protein deficiency
The protein content of Spirulina varies between 50 % and 70% of its dry weight. Spirulina proteins are complete as all amino acids are present, forming 47% of total protein weight. The best sources of vegetable protein achieve only half these levels. For example, soybean flour contains 'only' 35% crude protein, while 18 grams of milk or 5 grams of an egg have the same protein content as one gram of Spirulina.

Fighting Night Blindness & Other Vitamin Deficiency Diseases
Each kilogram of dry Spirulina contains between 700 and 1700 mg of Beta-carotene and about 100 mg of Cryptoxanthin. Only few other Vitamin A sources are as effective as Spirulina. An average person requires at least one carrot a day, as 50 to 100 grams are needed. A similar amount, 100 to 200 gram of spinach is needed to satisfy daily requirement while this can be fulfilled with only 1 gram of Spirulina.

Preventing anemia and iron deficiency
The very high iron content of Spirulina is important since there are not too many other good sources and the iron deficiency problem is widespread. As anemia is one of the most prevalent chronic forms of malnutrition - especially among pregnant and lactating women and thus their children - Spirulina can really play a major role in combating iron deficiency.

Mitigating Arsenic Poisoning
Bangladeshi researchers conducted a three-month hospital-based study in which 33 arsenic affected patients were given Spirulina and 17 were given placebo doses. 82 % of those taking Spirulina showed tremendous improvement. (Dr. Hassina Momotaj and Dr.A.Z.M Iftikhar Hussain: Effect of Spirulina on Arsenicosis Patients in Bangladesh Presentation prepared for 'Arsenic in Drin-king Water: An International Conference at Columbia University, New York, November 26-27, 2001)

Benefitting farmers and empowering women
Spirulina production process employs more people in relatively smaller tracts of land than any other crop (15 people can be employed in s production facility of 700 square meter). Since the procedure is not physically demanding, women can easily take this as their profession, as well as on the distribution, subsequently ensuring their own empowerment. Since production of Spirulina is not too complicated or too time consuming, it does not have to be the only source of household's income, rather it can be an effective additional source. No specific soil condition is necessary for setting up Spirulina manufacturing facilities, meaning it can be done in any piece of non-arable or unused land round the household. Spirulina provides the rural people with s very effective source of protein t s cost lower than any other source.

FINANCIALS

Sources of fund: No. | Details | Amount | Total | 1. | Share Holder’s Equity | | | | Hasin Abrar | 25,000 | 1,00,000 | | Shah Md. Junayed | 25,000 | | | Md. Asifur Rahman | 25,000 | | | Nafis M Zaman | 25,000 | | | | | | 2. | Debt | | | | EEF from ICB | | 2,00,000 | | | | | | Total | | 3,00,000 |

The ration will be 1:2, which mean we will fund 66.66% from the external sources, as per the constitution in Bangladesh. This will enable to start the business within 2 months time, from the day of getting the money.

The money will be taken on a due date after ten years, as the business is small and will take a huge time to regenerate money for investment.

The partner will share the profit equally.

Fixed Asset Requirements No. | Items | Floor Area (SFT) | Price per unit | Quantity | Amount(BDT) | 1. | Mixer | 15 | 15,000 | 2 | 30,000 | 2. | Oven | 250 | 65,000 | 1 | 65,000 | 3. | Burner | 20 | 7,500 | 2 | 15,000 | 4. | Cooler | 50 | 20,000 | 2 | 40,000 | 5. | Packing Machine | 150 | 50,000 | 1 | 50,000 | 6. | Shelf | 50 | 35,000 | 1 | 35,000 | 7. | Trays | - | 250 | 40 | 10,000 | 8. | Table for production | 30 | 5,000 | 4 | 20,000 | 9. | Vertical Freezer | 50 | 25,000 | 1 | 25,000 | 10. | Weighing Scale | - | 5,000 | 1 | 5,000 | | | | | | | | Total | 790 | | | 2,95,000 |

Cost of making a batch (200 biscuits) No. | Ingredients | Cost per unit | Quantity | | Amount | 1. | Flour | 50/kg | 3kg | | 150 | 2. | Egg | 7/pc | 8 | | 56 | 3. | Baking Powder | 100/kg | 0.2kg | | 20 | 4. | Butter | 150/kg | 0.2kg | | 30 | 5. | Spirulina | 15/kg | 4kg | | 60 | 6. | Sugar | 70/kg | 0.4kg | | 28 | 7. | Flavors | 500/ltr | 0.1 | | 50 | | | | | | | | Total | | | | 394 |

Sales Budget (packets) | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | 2013 | 0 | 0 | 2000 | 2200 | 2400 | 2700 | 3000 | 3200 | 3400 | 3400 | 3200 | 3200 | 28700 | 2014 | 3000 | 3000 | 3200 | 3200 | 3500 | 3500 | 3600 | 3700 | 3800 | 3800 | 4000 | 4000 | 42300 | 2015 | 4200 | 4500 | 4500 | 5000 | 5200 | 5400 | 5600 | 5800 | 6000 | 6000 | 6200 | 6500 | 64900 |

1 packet= 10 biscuits
1 packet cost= 19.7
Selling price= 13 taka to seller
MRP= 15 taka

Operating Cost per month No. | Details | Quantity | Cost per unit | | Amount | 1. | Land | 800 sft | 5/sft | | 4,000 | 2. | Production Manager | 1 | 8,000 | | 8,000 | 3. | Worker | 2 | 3,000 | | 6,000 | 4. | Driver | 1 | 2,000 | | 2,000 | 5. | Security guard | 1 | 3,000 | | 3,000 | 6. | Electricity | 1 | 3,000 | | 3,000 | 7. | Maintenance | | | | 1,000 | | | | | | | | Total | | | | 27,000 |

Average Monthly Sales:
(28700 + 42300 + 64900)/34
3997 packets Operating Cost/ packet
27,000/3997
6.75 taka
Total Cost of 1 packet

Income Statement Details | | 2013 | 2014 | 2015 | | | | | | Revenues | {28700,42300,64900}x13 | 373,100 | 549,900 | 843,700 | Sales | | | | | (-) Cost of goods sold | | | | | Production Cost | {28700,42300,64900}*19, 17, 15 | 545,300 | 719,100 | 11,03,300 | Gross Profit | | (172,200) | (169,200) | (259,600) | | | | | | Expenses | | | | | Salary & Wages | 19,000x13 | 247,000 | 247,000 | 247,000 | Rent | 4000x12 | 48,000 | 48,000 | 48,000 | Electricity | 3000x12 | 36,000 | 36,000 | 36,000 | Maintenance | | 12,000 | 12,000 | 12,000 | Depreciation | | 10,000 | 10,000 | 10,000 | Total Cost | | 353,000 | 353,000 | 353,000 | | | | | | Net profit/ (loss) | | (525,200) | (522,200) | (612,600) | | | | | |

Balance Sheet Details | | 2013 | 2014 | 2015 | | | | | | Asset | | | | | Machineries | 285,000 | 275,000 | 265,000 | 255,000 | | | | | | Current Asset | | | | | Cash | | 10,000 | 15,000 | 20,000 | | | | | | Current Liabilities | | | | | Bank o/d | | (500,200) | (492,200) | (577,600) | Net Worth | | (215,200) | (212,200) | (302,600) | | | | | | Share holders Equity | | | | | Capital | 300,000 | 300,000 | 300,000 | 300,000 | (+/-) Profit/ (loss) | | (525,200) | (522,200) | (612,600) | | | | | | Shareholder’s Fund | | (215,200) | (212,200) | (302,600) | | | | | |

Break Even Analysis: 200,000 packets
Profit occurs on further sales.

Assumptions
No of Working Days in One Year 365
No. of Working Hours in One Day 8
No. of Shifts 2
No. of Outlets 1
Working Hours of Outlets 8

Sales growth rate 15%
Salaries, wages growth rates (as %age of annual Salaries and Wages) 5%

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