Social Business

1. Introduction

Social business is a cause-driven business. In a social business, the investors or owners can gradually
recoup the money invested, but cannot take any dividend beyond that point. Purpose of the investment
is purely to achieve one or more social objectives through the operation of the company; no personal
gain is desired by the investors. The company must cover all costs and make profit, at the same time
achieve the social objective, such as, healthcare for the poor, housing for the poor, financial services for
the poor, nutrition for malnourished children, providing safe drinking water, introducing renewable
energy, etc. in a business way.
The impact of the business on people or environment, rather the amount of profit made in a given
period measures the success of social business. Sustainability of the company indicates that it is running
as a business. The objective of the company is to achieve social goals.
Social businesses are allowed to make profit with the condition that profit stays with the company; the
owners will not take profit beyond the amount equivalent to investment. Social business is a new
category of business. It does not stipulate the end of the existing type of profit-making business. It
widens the market by giving a new option to consumers. It does not intend to monopolies the market
and take the existing option away. It adds to the competition. It brings a new dimension to the business
world, and a new feeling of social awareness among the business community.

Our social business model and plan:

2. Social business model
Social business model name: Portable water filter by using recycle bottle

Overview:
This is a business plan to market and sell the portable water filter in Bangladesh. The mission of this
business is to inform people about the importance of drinking clean water, offer them affordable clean
water solutions and the potential to earn income by selling water filters. We will start the social business
under the brand name Pure

Portable Purifier.

Non-profit business objectives:

The mission of Pure Portable Purifier is to effectively help poor people become self-sufficient. All
revenue acquired from this water business, beyond what is required to grow the business, will be
invested to fulfill the social needs of poor people of Dhaka, especially for those people who live in slum.
We are operating this as a business because people value things they buy. So while clean water is
important and is one of those things that arguably should be given away for free, we operate on a nonprofit business model to help people appreciate these products and enable us to grow the business.

Description of the business plan:

We will start our business under the brand/company name Pure Portable Purifier. Our initial
investment will be optimum and our main target will be betterment of slum based people (Especially in
Dhaka city).

We will choose our shop in a slum of Dhaka. We will rent the room by maintaining all possible
environmental issue. We will use our shop to manufacture product as well as to sell product. Initially we
will appoint five lady workers from a particular slum. We will train them to make our product. We will
buy the raw material (filter cartridge) from local market after ensuring the raw material quality. And we
will use one litre (1000 ml) vacant bottle as a recycle product. We will make a TV commercial based on
slam woman to promote our product. So our initial investment will be providing the raw materials, room
rent, TVC making cost and workers salary only. We will sell our product through a website
(www.purepurifier.org.bd). We will develop the website by ourselves. We will receive our order through
our website. Our target consumer will be school, college and university going students and also office
going people. We will receive order through online. To deliver our product we will charge very low
delivery cost. Consumer will also able to collect our product directly from our shop. We will also make a
plan for personal selling for our workers. If any of our workers able to sell the product to other people
then we will give her commission against that personal selling. One portion of initial revenue will be
used for expansion of our business and other part will be used to cover our initial investment. We also
use a part of revenue to establish our female workers family (Children education, health care etc.). We
will engage more female workers in future as a part of business expansion process. In future when we
will receive profit we will use that for our workers betterment and will take several moves to meet up
the social needs of slum people.

3. Justification of our social business model

Justification against seven principles of social business model
i.

Our business objective is overcome poverty, or one or more problems (such as

education, health, and environment) which threaten poor people (slum living people).

ii.

To gain financial and economic sustainability for slum living people.

iii.

We will get back our investment amount only; no dividend is given beyond investment
money

iv.

When we will receive investment amount, company profit stays with the company for
expansion and improvement of the workers.

v.

We will use recycle bottles (water/cold drinks bottle) that ensure product recycling
which is environmentally conscious

vi.

Our workers will get market wage with better working conditions

vii.

We will execute and do our works with joy

 Pricing model
Our pricing model of social business (portable water purifier) is based on lower prices, better
service and greater accessibility. We will sell our product at minimum cost which is about BDT
200 per water purifier. Thus, our business is designed and operated just like a regular business
enterprise, with products, services, customers, markets, expenses and revenues. Our social
business company is a no-loss, no-dividend, self-sustaining company that sells goods or services
and repays investments to us, but our primary purpose is to serve society and improve social
goals of slum living people.

Social goal
The main goal behind our social business is to serve society and improve the lot of the slum
living poor people. Our social business plan introduces a totally revolutionary dimension to the
free market economy. The satisfaction gained in achieving the stated social goals are the only
motive behind the investment, and the business will be evaluated according to that standard.
Essentially it is a non-loss, non-dividend business aimed at social objectives education, health,
environment, whatever is needed to address the problems faced by society. The profits here
remain with the business and help it to grow further. We will spend profit for the expansion of
our business as well as for the betterment of our workers and slum living people across Dhaka.

Financial and economic sustainability

The aim of our social business (Portable water filter by using recycle bottle) is to have a social
goal that our company (Pure Portable Purifier) can pursue on behalf of us. At the same time we
have aimed at being self sustainable meaning it we must avert losses just as any other normal
company. Our profits are reinvested for expansion and further social benefit by providing a
service at the best price to help the people. To sum it all our social business is a company aimed
at providing a service to help the people while operating with the motto of no loss and dividend.
This way we will ensure the financial and economic sustainability.

Type of our social business model

There are two types of social business model. Type one focuses on businesses dealing with
social objectives only. Type two can take up any profitable business so long as it is owned by the

poor and the disadvantaged, who can gain through receiving direct dividends or by some
indirect benefits. Our social business eventually falls under type two, because we will hire our
workers from slum and we will make and sell our product by them. We will also arrange
commission/incentive facilities for personal selling. In future, profit will use for business
expansion and to fulfill the social needs of workers as well as slam people.

PESTEL Analysis
a. Political analysis
Bangladesh is a South-Asian country surrounded by India and Bay of Bengal. It is considered as a
developing country that has high hope in the world economy. Recently it has been going
through a huge change in a form of economical prospective and political prospective too. In the
5th January, 2014 the national election was arranged by the election commission of Bangladesh
through which Bangladesh Awami-League was elected as the next government. Although the
election was hugely controversial due to the lack of attendance of mass people and due to the
absent of one of the big political party in Bangladesh, which is Bangladesh National party. All
in all Bangladesh Awami-League easily went through an easy win in the election and the party
became the next government ruling party for the next five years.
In recent past years of around ten to fifteen years Bangladesh economy has gone a long way and
has been able to make names in the sectors like RMG and labor supply industry. Bangladesh also
made its name in the world economy when they were able to stand alone in times of world
recession in 2008 when the world economy was in trouble. Almost all the business has gone a
long way in last ten years or so. Among them NGO is one of the most influential sector that has
gone a long way which was beyond anybodies imagination. Dr. Muhammad Yunus is the person
that showed that world through his micro credit business that how poverty can be removed
from a country like Bangladesh where this policy played a huge role. Bangladesh government
has always been supportive to this type of business and rules and regulations are there that
supports this type of business. But it needs some proper modification due to the change in the
whole globe both from the economical and modern life style prospective. In the recent past
years of 1 to two years Bangladesh government has tried to modify different rules regarding
NGO business in Bangladesh and they were unable to solve the entire problem. So, it is
becoming a huge challenge for the present and the new NGO business entrepreneurs to come
and contribute in this type of business.

Another important factor that is affecting Bangladesh is the corruption. Corruption in Bangladesh has
been a continuing problem with the country being ranked as the most corrupt country for the year 2005

in the list published by Transparency International. The country's ranking on the same list for the years
2011 and 2012 is 120 and 144 respectively.
Companies report that they are subjected to costly and unnecessary license and permit requirements,
while e-governance is not yet developed in Bangladesh. Face-to-face encounters with public officials are
therefore inevitable and facilitate the solicitation of bribes. Tendering processes and awarding contracts
Reports of corruption in the awarding of public and private tenders are frequent. Collusion between
political leaders and bureaucrats in public contracting occurs in favor of particular bidders.

Crime in Bangladesh is present in various forms such as Drug Trafficking , Money Laundering , Extortion,
Contract killing , Fraud , Human Trafficking , Robbery , Corruption, Black Marketeering , Political Violence
, Terrorism and Abduction among others. Bangladesh is used as a transit route for narcotics produced in
neighboring countries. The Annual Report for 2007 from the International Narcotics Control Board
(INCB), reports that Bangladesh is now the main transit point for the movement and trafficking of heroin
from Southeast Asia into the European market. The report noted that the porous borders between
Bangladesh and India contribute to the cross-border trafficking of narcotics.

To get rid of all this corruption, a regulatory body was formed in the name of :

) often abbreviated: ACC ( Bengali : ). This was formed through an act promulgated on 23
February 2004 that into force on 9 May 2004. Although initially, it could not make the desired impact,
but immediately following its reconstitution in February 2007, the ACC began working with renewed
vigor and impetus duly acceding to the United Nations ' convention against corruption that was adopted
by the General Assembly away back on 31 October 2003.
Another body that is trying to solve this problem is Transparency International Bangladesh ( TIB ) is a
non- governmental organization that monitors and publicizes corporate and political corruption in
Bangladesh. It has elaborate research and advocacy programmes for policy change and institutional
reform for creating conditions for reducing corruption and promoting good governance in Bangladesh.

b. Economic Analysis
Bangladesh is a nation that has developed a lot over the last few years. Very recently it has been
announced by the Bangladesh Bank that it has reached the highest amount of foreign reserve in
the history of Bangladesh. Also Bangladesh has been a steady nation that has been growing on
GDP regularly over the last few years.

Through this graph we can see how the investment in the public and private sector in Bangladesh has
grown over the years. Also it shows that gradual growth in the economy of Bangladesh.

One interesting commonality that we found between economy and politics is political business.
Bangladesh has turned the political business cycle phenomenon upside down. Political business cycles
are cycles in macroeconomic variables output, unemployment, inflation induced by the electoral
cycle. This type of business cycle results primarily from the manipulation of policy tools by incumbent
politicians hoping to stimulate the economy just prior to an election and thereby improve their
reelection chances. Expansionary monetary and fiscal policies have politically palatable consequences in
the short run. When pursued to excess, these very policies can also have very unpleasant consequences
in the longer term in the form of accelerating inflation, decreasing savings, worsening foreign trade
balance, and long-term expansion of government's share of the GDP at the expense of private
consumption and investment. So immediately after the election, politicians tend to bite the bullet
and reverse course by raising taxes, cutting spending, slowing the growth of the money supply, and

allowing interest rates to rise. As a result, the regular holding of elections tends to produce a boom-andbust pattern in the economy because of the on-again-off-again pattern of government stimulus and
restraint to induce an artificial boom at every election time. Bangladeshs experience also shows the
existence of a political business cycle in GDP growth, albeit with exactly the opposite pattern of boom
and bust. GDP growth has consistently declined in each of the last five election years. It happened in
1991, 1996, 2002, 2007 (an election year without election) and 2009. From the perspective of Western
political business cycle theory these growth tendencies appear suicidal for the incumbent. Instead of
expanding the economy faster to gain votes, the incumbents appear to be shooting themselves in the
foot by allowing the pace of expansion to slow in the election year!

Bangladesh is a land of all most 160 million people. But most of the population are unskilled thus can
contribute a little in the economy of Bangladesh. So, the unemployment rate is going up and the
demand for skilled workers are is going up. Export of skilled workers is also another reason that
Bangladesh is losing man power. Government is trying hard and soul to create self made entrepreneur
by providing loans and training to the people who can later on work on his own and earn. Especially in
rural areas the government is running different programs to solve this problem.
Other important factor is the globalization factor in the present economy. In the modern world due to
the blessings of internet and social websites the world communication has gone so far that it is
impossible for a human being to live without any impact of globalization. So, as a modern business
organization or as a modern entrepreneur it is very important for him/her to bring on the globalization
factors in the business to run it with success.

SOCIAL
Currently, the population of Bangladesh is 163,654,860, which is almost close to 16.4 crore. This is an
estimated figure for July 2013. The population growth is expected to be 1.59%. The trend for the
population growth rate in Bangladesh is increasing from 2009 onwards. This can be shown in the chart
below:

Fig: 1 Population Growth Rate

From the above diagram, it is seen that from 2009 onwards, the trend is increasing. However, after
2010, the growth of population slowed down and having a very insignificant increase in the population.
Thus, it is expected that after 2013, it will either stay constant or have a very insignificant amount of
increase in the trend.

The age profile of Bangladesh is also shown in the following table:

AGE RANGE
0-14 years
15-24 years
25-54 years
55-64 years
65 years and over

% OF POPULATION
33
18.8
37.6
5.7
4.9

The age profile will likely to change because people who are between 0-14 years old will shift to the next
age range. Thus, the 1st range will decrease due to the shift as well as decrease in the birth rate since
nowadays; people are concerned with their family planning. Currently, the birth rate is only 22.07 births
per thousand populations. The other 3 ranges are expected to rise. And the age range of 65 years above
people will also increase since the death rate of the country is also decreasing which is 5.67 deaths per
thousand of population.
Generational Shifts
This generation shifts will most likely affect our business, since we are targeting between the age ranges
of 15-64 years old. So, if it is expected that all the three ranges in Table 1 is expected to increase, this
means that our target population will increase significantly and we will be able to attract more

customers to buy our products. And, buying more products will mean that production will increase
which will help more unemployed people to get job opportunities.

Society's levels of health, education, and social mobility

The infant mortality rate is 47.3 deaths/ 1000 live births and the life expectancy rate is 70.36 years. So,
all this data proves that, the societys health conditions as well as the health care provisional facilities
have also improved. The literacy rate of the country is 57.7 %; people at the age of 15 or above can
read and write. The figure of literacy rate is very lower. In 2011, the rate was 59.82%, meaning that the
rate is going down. This is a very critical issue as the educational standard of the society is not up to the
mark and there are no signs of improvement seen in this sector. It is seen that the school life
expectancy is only 8 years. That means, the children are only attending education for only 8 years. This
has a direct connection with the issue of child labor. The total number of children used for labor is
approximated to 4,485,497, which generally means that the school deprived children are joining as
labor. In case of social mobility, that the urban population is 28.4% of total population, that means still
maximum number of people are in rural areas.
These mixed changes in the societys level of health, education and social mobility will have a large
impact on our business. The health care facilities are improving for why the infant mortality rate is very
low; as a result, it shows the increased health consciousness of the people. This is beneficial for our
business because we are giving people access to purified drinking water. So, health conscious people will
surely consume our products. However, we see that the urban population is very lower, meaning that
we have less target population in urban areas, in which we are highly focusing.

Employment patterns and job market trends

As a labor abundant country, the prospect of the entire economy of Bangladesh depends on the
features of the labor market (Woahid, 2009). The demand for labor is not sufficient enough for the ever
increasing supply of labor. For this reason, the market is always in the disequilibrium position. In the
labor market, employment is determined by the supply of labor in situations of full employment. But in
situations of unemployment and underemployment, employment is determined by the demand factors.
Hence, the components of the supply function and the determinations of employment need to be
analyzed separately (Rahman, 1993). The changing patterns of the employment varies from factors like,
demography, structural change, change of social attitude, trends of economic activities, the
macroeconomic policies initiated by private and public sectors as well as multilateral organizations
specially the World Bank, IMF, United Nation, etc. For example, Chletsos and Michael (2005) found that
the growth rate has a positive impact on the employment level; however, there is a negative
relationship between employment and labor productively. These problems are seen in all the age groups
who are actively taking part in sort of economic activities.

Social attitudes
The social attitude towards buying our product will vary according to type of areas in which we will be
targeting our consumers. In case of the rural areas, people do not have the habit of carrying bottle with
them while they are at work. So they this attitude of the rural people will affect our business adversely.
However, if we can aware them about the importance of consuming purified water, the adverse impact
can be alleviated. In case of the urban areas, there is mixed results. People in the colleges or universities
are also very reluctant to carry water bottle, like the rural people. They either buy mineral water from
shop, and throw the bottle when they are done drinking, or use the filter provided at colleges or
universities. This attitude of the students will also adversely affect our business. But again, this problem
can be solved by raising awareness among the students, as it will be easy to educate them about
drinking purified water. On the other hand, the office going people are regularly carrying their lunch box
as well as a drinking bottle, as they will need it throughout their office time. So, this attitude of them can
positively act on behalf of our business, as they will be interested in buying our product, since they can
use tap water and purify it inside the bottle. That means the lifestyle choice highly affects the population
for using this product. Here, no religious beliefs hamper the decision. Some other social cultural factors
also affect the decision of buying the products. This is because, in some rural areas, if a family is seen to
be conscious about drinking pure water, then it is thought that the family members possess some
diseases for which they are acting reactively. They do not understand that this consciousness can also
act as a proactive measure. So if this attitude can be changed of the rural people, then it will help to
prevent them from getting diseases from water and get access to purified water on the move.

Technology
Mainly, we will be using a small filter cartridge that will help to purify the water inside the bottle. So,
except for this, we do not need any other technical components for our product. By the use of filter and
plastic bottle, we can build up our product. We dont think that there are any new technologies on the
horizon that could radically affect our work or industry. However, the competitors can get access to our
product, and by the help of reverse engineering, they can imitate our product very easily. In that case
we will try our low cost strategy to give them as a barrier to entry. Moreover, as there is no use of
technology here, so there is no chance of using or introducing any technology by the competitors.
However, if the people (from whom we will produce our products) want, then they can start their own
business enterprise. We will act as a supplier to them by supplying filter cartridges and help them
produce the product from the reuse of plastic bottles. Generally government and educational
institutions focus their research on technology and other ways of achieving social welfare to the public.
Recently it has been seen that Bangladesh, like other developing countries is increasing the number of
business incubators. Business incubators are companies which help the new entrepreneurs to start up
their business, check on their feasibility of the business and provide other assistance to the company.
So, we can take help from one of the business incubators present in Bangladesh in order to judge our
feasibility of our social business.

The recent infrastructural changes that affect work patterns are not very much of concern to us.
Changes like remote working, or rural to urban migration of people is of a less concern to us. This is
because; there are lots of unemployed people, especially women who are facing many difficulties to
earn their living. So, when they are done with their household work, they can give time to help us
producing our product. This will benefit us, as well as the people who will earn their living. Apart from
these, we can think of other technological factors, such as using such a machine, which will produce the
filter cartridge, so that we do not have to import from foreign country. However, this will be very
difficult to adopt this policy, so an alternate strategy that can be used, is to find local suppliers of this
filter cartridges.

5. Industry analysis
In Bangladesh, the major reason for lack of safe water is either scarcity of water or contamination of
water sources. Lack of safe drinking water is due to both lack of investment in water systems and
inadequate maintenance of existing systems. In Bangladesh, drinking water is highly subsidized for those
connected to the system, generally well-to-do people while poor must rely on either expensive private
sellers or unsafe sources. In Bangladesh, our social business seeks to find sustainable, yet economically
and socially practical solutions to the problems associated with polluted water. Many techniques such as
chlorination, distillation, boiling, sedimentation, and use of high tech filters have been utilized to purify
water. These methods, however, face major barriers such high price, maintenance, conservation of fossil
fuels, and unhygienic waiting periods. Our proposed solution to this problem involves production of a
low cost and effective water filter, which requires no electricity. Besides being sustainable, it is
environmentally friendly, easily implemented, and easily produced by a limited workforce.

Future outlook and trends

Globally more than one billion people lack access to safe drinking water, nearly all of them in the
developing countries, including Bangladesh. Nearly a third of the worlds population worldwide live
in water-stressed areas. This figure is expected to rise to two-third of the population by 2025. With
increasing number of people becoming conscious of the risks of drinking contaminated water, the
demand for water purifiers is rising rapidly. In the past few years, Bangladesh water purifier industry
has witnessed an exponential growth of 9-11%. The water purifier industry sale is improving
demand and expanding production capacity. The industry saw high growth rate increasing
awareness for safe drinking water. The Bangladeshi market has tremendous potential. If we
consider the current growth rate and trends, water purifier business plan will be profitable for us.

After considering the current trend, our business plan has enough potentiality and space to boost up
our sales revenue.

Analysis of competitors
In Bangladesh, several local and international companies are present who are manufacturing and
selling water purifier. Another competitor for our portable water purifier is bottled water provider.
Now day bottled water has become popular in Bangladesh for easily availability. Some popular
water purifier providers in Bangladesh are Grameen Veolia Water Ltd, Kent, Unilever Water
Purifier, APEC Water Technology and A Plus Bangladesh etc. These water purifier providers are
mainly sell imported water purifiers which are large in size, costly and unportable. Some popular
bottle water brands are Partex group (Mum), Pran group, Square group etc. Bottle water is also
costly if we want to drink them on regular basis. But our portable water purifier will be less costly
and easily portable. Cost effectiveness of our product will attract more consumer especially our
target customer group. If we consider other competitors and their product our product is
affordable, reusable and eco-friendly. It would be a plus point for our business plan.

Market segmentation
Bangladesh has been blessed with sufficient natural water resources, but an alarming increase in
population and global warming along with rapid industrialization has resulted in an increased rate
of water utilization and consumption. Further, inadequate management of water supply systems
has led to worsened condition of supply networks and the wastage of water. This has led to the
scarcity of clean drinking water, which in turn, has opened opportunities for entrepreneurs like us
to venture into the water purifying process. Following are the market segments for water
purification business.
i.

Fixed or portable water purifier provider: Its market is segmented into three types of water
purifiers the ultra-violet, reverse osmosis (RO) and resin- based one. RO-based purifiers
are the most expensive - priced at BDT. 15,000 and above, while UV-based purifiers are
priced between BDT. 5,000 and 10,000. Non Electric water purifiers are more affordable at
BDT 2,500 and onwards.

ii.

Purified water supplier (Jar business)

iii.

Bottle water: Its market is segmented into packaged drinking water and packaged natural
mineral water. And price range is from BDT 15 to 20.

Bottled water is a rapidly growing in Bangladeshi market and major portion of purified water
market is under them. But portable water purifier is getting popular as a solution of long time
water purifying process. A significant portion of the population, specially the middle and the upper
income groups, is keen on safe, portable water purifier, giving rise to a new trend of water
consumption. Our water purifier is less expensive and easy to use. So we have enough places to
execute our business plan.

Industry and market forecast

According to Bangladeshi water purifier market forecast reports, water purifier market in
Bangladesh has shown tremendous growth during the last few years. The water purifier market is
expected to grow at the CAGR of 11% in upcoming year. The high population density and increasing
shortage of safe drinking water are contributing to the increasing demand for water purifiers in
Bangladesh. The domestic and foreign manufacturers are expanding their scale of operations to
attain more sales in the market. In 2010, leading consumer goods company, Unilever Bangladesh
entered the Bangladesh water purifier market with its brand Pureit. Besides international brand
local companies are also increases their business day by day. So we have enough chance to grip the
industry through our product that will be available at optimum cost.

Market size
I.

Market trends: Non electric water purifiers sales rate is higher than other type of purifiers.
And it is increasing day by day. So market trend is positive for our water purifying business
plan.

II.

Market growth rate: Current growth rate of water purifier in Bangladesh has shown
tremendous growth opportunities in last couple of years. So our business plan would be
profitable for us in near future.

III.

Market profitability: Our target customers are basically school, college and university going
people as well as office workers. We will try to identify their actual needs regarding water
purifier and will try to implement those by maintaining the optimum price level. We will try to

improve our product and service to maximize the revenue for further business expansion and
for betterment of slum living people.
IV.

Industry cost structure: Price of available water purifier in Bangladeshi market is starts from
BDT 2,500. But we will sell our product at minimum cost which will be around BDT 200. So we
have a fair chance to sustain in the market for long time and also make our business plan
viable.

V.

Distribution channel: Available water purifier groups operating their business through strong
distribution channel. As our initial investment will be optimum and we will do the business as a
social business so our distribution and marketing process will be done through our official
website and our slum based female works.

VI.

Key success factor: If we compare our product with other available purifying product, our key
success factors will be low cost, portability, easy handling process.

VII.

Key success detail: Main USP of our product will be the optimum cost and portability. Our
product is eco-friendly. We will use vacant bottle that will enhance product recycling process.
Anyone can use it and buy it to ensure safe drinking water.

Description of venture
We will be conducting a new form of social business with an aim to solve the problem of purified water
that common people lack in their houses and their work places. Due to the availability of purified water
Bangladesh is still considered as one of the short listed country that is prone to water born diseases. A
small and light weight water purifier that can be carried to any place one wants. Our main target
customer will be students and the executives. Through this process we will be empowering poor women
as initially poor womens will be working for us. Also they will be our commission agent business partner
is well. Initially we have a plan to start the business in a small dimension in some specific location, later
on we have a plan to expand our business throughout the country. We also have a plan to go online.
Due to the dominance of social websites in business and in every aspect of life we thought we could go a
long way if we conduct with our customers online too. We will be selling and taking orders through
online is well. All in all if everything goes according to the plan we have an ambition to reach every
corner of Bangladesh and make Bangladesh free from water born diseases.
Another ambition behind our business is the recycling of plastic water bottles that would eventually
been dumped and been polluted to the environment.

Production Plan
For the production of our water purifier we are planning to rent spaces where the rents are moderate
and where poor womens can be accessed easily. We will be providing the raw materials such asbottles, cutter, and the water purifier chalk. Initially we are planning to train them how to make the
product. Later on we will be expanding our business and we have a plan to expand our production area
in different locations throughout the country so, that our customers can reach us very easily.

Operational Plan
We will be operating this business both from our spot shop and also through virtual shop. We have a
plan to sale our water purifier bottle not only from the production place, but also through our own
websites and our social web pages. As, we will be taking orders and if anybody wants we will be
providing delivery service to their desired locations. We have also planned to use womens that will be
working for us as not only for the production but also as a commission agent in our business. We will
encourage to sale our product door to door through the womens that will be working for us. In return
they will be getting extra commission for that.

4. Marketing plan
Our social business company Pure Portable Purifier is dedicated to converting vacant plastic bottle
into commercially viable products, utilizing environmentally friendly recycling and manufacturing
methods. We intend to make an environment friendly portable water purifier to generate a significant
return for our investment and to finance continued growth and continued development in quality
products and to meet up the social needs of our workers and slum living people. We will also maintain a
friendly, fair, and creative work environment, which respects diversity, new ideas and hard work. As a
part of marketing plan we will do following things to sell our product.

Marketing Objectives
Main objective behind marketing our products is as follows
I.

To increases awareness about our product which ensures environment friendly product at
optimum cost.

Target Customers

Our target customers are basically school, college and university going people as well as office
workers. We will also involve our women workers to sell the product to other people.
We will also try to cover the following customer segments in future for our business expansion.
I.

Individual people as customers

II.

Communities

III.

Companies or bulk purchases We will also look to expand our capacity to reach
businesses, schools and other non-profits.

Order receiving and delivery plan

We will develop our official website by ourselves to sell our product. Consumer will able to place an
order through our official website. We will deliver the product with minimum delivery cost.
Consumer will also able to collect our product directly from our shop after placing an order through
website. Or they can come directly to buy a product. Personal selling is also applicable for our
product. Our female workers will able to sell the product to other people by themselves. For that
they will received a certain amount of commission for that personal selling.

Marketing strategy
We will sell and promote our product through our official website. We will make a TVC to promote
our product (Portable water filter by using recycle bottle). TVC will be based on slum people. We
will make the TVC in such way so that our TVC will not only promote our product but also contain a
social message regarding slum living people. Our TVC will be aired through different
communication medium (TV, Internet). Through our TVC we will try to pass a social message that
will develop awareness about drinking clean water. Our official website will contain detail
information about our product and order placement module. Besides that it will contain
information about slam people and their lifestyle that will address the social issue related slum
people. Which may invoke appeal in consumers about poor people and consumers can involve
themselves to fix the social issue related with slum living people.

Promotion and direct response plan

We will use different social medium like YouTube, Facebook, Twitter, and Google+ to promote our
product. We will create page in different social medium which will also promote our product along
with our official website.

ORGANIZATIONAL PLAN
As our business strategy will mainly focus on attracting maximum number of customers, we will focus on
using more attractive promotion through the popular social networking website, facebook. Not only
that, the slum people, who will be preparing the product will also try to acknowledge people about our
product by word of mouth. After that we will be focusing on promoting our goal to the potential
employees so that they are clear about their job fit. This can be mainly done by raising awareness to the
slum people by acknowledging them about how they are acting environmental friendly. Thus, it is
helping the unskilled workers to know about the environmental concerns. It is helping them realize that
they can also be a part of those who can act environmentally friendly. In addition, they are also
encouraged to come up with new, innovative ideas to further expand our business.
We have to focus on demand for labor in order to find out what kind of people will actually be required
to be a part of our business. Information like, which jobs wills the firm need, what competencies are
required, what is our expected level of business activity, how many workers are needed, etc.
We also need to focus on supply of labor in order to find out that which competencies are available, will
we be able to find those competencies, whether any training is required or not, etc.
So, once we forecast these things, we should identify gaps like shortage or surplus of employees. Once
the gap is identified, we will take our action. Last of all, we will evaluate whether the workforce planning
has been effective or not in terms of meeting our recruiting and hiring goal.

Management Team

SABBIR

FARZANA

SADIQUL

NOVAIRA

(Human Resource)

(Finance)

(Operations)

(Marketing)

WORKERS
(SLUM People)

The person involved with the human resource, will deal with hiring the lady workers. Proper assessment
will be done before hiring. They have to be interested in contributing to this good cause. They have to
be able to produce uniform products. All these human related issues will be solved by the person
involved with it. Another partner will be involved with finance, where all the accounting tasks,
budgeting, keeping records and other financial tasks will be handled. The operation manager will be
handling all the production related activities, like bringing raw materials, which is importing filter
cartridges, in our case. Other operational tasks may involve monitoring the production process, finding
any defects, etc. Last but not the least; a marketing person should be there as proper marketing needs
to be done, such as price, product, promotion and place. So all the workers will be accountable to all
four partners and enhance the business performance.

ASSESSMENT OF RISK
There are many possible risks that our social business can face. Firstly, the imitation of our business
model by the competition can decrease our competitiveness in the market. As the model is very easy to
produce, the competitors can buy our product and by reverse engineering, they can very easily imitate
the product. This is one major barrier. Another barrier includes, the exporter may no longer willing to
supply their filter cartridges to us. So, if this import channel is stopped, it may be tough to find out other
supply chains. And if no other channels found, then we might to have to stop our production. Some
other barriers may involve like changes in people demand; they might not accept our product, etc.

FINANCIAL PLAN
Assumptions

There is no debt financed, it is 100% equity financed

There is no Fixed Asset needed, except for a Computer
50% of profit is returned to investors, 50% of profit is expansion purpose, unless the capital
invested by the partners is paid back.

Initial Cost
ITEM
Advance Rent
Connection For Utilities

TAKA
1,000
3,000

Total Cost

4,000

FIXED ASSET
ITEM
Equipment

TAKA
40,000

Total Fixed Asset

40,000

CURRENT ASSET
ITEM
Cash on hand

TAKA
100,000

Stocks for filter

Total Current Asset

150,000
250,000

Total Investment
ITEM

TAKA

Total Fixed Asset

Total Current Asset
Total Initial Cost
Total Investment

40,000
250,000
4,000
294,000

List Of Fixed Asset & Their Depreciation

Item
Equipment
Total
Depreciation

Cost
40000

%
5

Amount per year (Taka)

2000
2000

Administrative Expenditure
ITEM
TAKA
Salary (5 * 2000)
10,000

Utilities
Stationeries
Depreciation
Total Expenses

4,000
500
2,000
16,500

Start up Funding
ASSET
Total Fixed Asset
Total Current Asset
Total Asset

TAKA
40,000
250,000
290,000

Liability
Long term liability
Account Payable
Total Liability

50,000
50,000

Capital
Planned Investment
No.of
4
investors
Profit at start up
Total Capital & Liabilities

200,000

40,000
290,000

CAPITAL INVESTED BY EACH OWNER

OWNER
FARZANA
SABBIR
SADIQUL
NOVAIRA
TOTAL CAPITAL

AMOUNT (TK)
50,000
50,000
50,000
50,000
200,000

Capital Invested By Each Owners

25%
TK 50,000

25%
TK 50,000

FARZANA

25%
TK 50,000

SABBIR

25%
TK 50,000

SADIQUL
NOVAIRA

BUDGET
Units Sold

2014
150

2015
170

2016
180

2017
200

2018
220

Sales per unit

Sales
Raw material
Per unit
Purchase
No. of workers
Salary per unit
sold
Salary

350
52,500
150

350
59,500
150

350
63,000
150

350
70,000
150

350
77,000
150

22,500
4
100

25,500
5
100

27,000
7
100

30,000
8
100

33,000
10
100

15,000

17,000

18,000

20,000

22,000

INCOME STATEMENT FOR 5 YEARS

ITEM

INCOME STATEMENT
BDT
2014
2015
2016

2017

2018

REVENUE
Sales Income
Cost of goods
produced
Gross Profit

52,500
22,500

59,500
25,500

63,000
27,000

70,000
30,000

77,000
33,000

30,000

34,000

36,000

40,000

47,000

EXPENSES
Rent
Depreciation
Stationeries
Salaries
Utility
Total Expenses

4,000
2,000
500
15,000
1,000
22,500

4,500
2,000
200
17,000
1,200
24,900

5,000
2,000
200
18,000
1,500
26,700

5,500
2,000
100
20,000
2,000
29,600

6,000
2,000
200
22,000
2,200
32,400

Net Income

7,500

9,100

9,300

10,400

14,600

Appropriated Income
Partners
Sabbir
Sadiqul
Farzana
Novaira

937.5
937.5
937.5
937.5

1125
1125
1125
1125

1162.5
1162.5
1162.5
1162.5

1300
1300
1300
1300

1825
1825
1825
1825

3750
7,500

4550
9,100

4650
9,300

5200
10,400

7300
14,600

Retained Earnings

BALANCE SHEET
ITEM
ASSETS
CURRENT ASSET
Cash
Stock

2015

BDT
2016

2014

2017

2018

143,250
22,500

143,050
25,500

143,650
27,000

143,200
30,000

144,300
33,000

Total Current Asset

165,750

168,550

170,650

173200

177,300

40,000
2,000

38,000
2,000

36,000
2,000

34,000
2,000

32,000
2,000

38,000

36,000

34,000

32,000

30,000

203,750

204,550

204,650

205,200

207,300

50,000

55,000

60,000

65,000

70,000

50,000

55,000

60,000

65,000

70,000

Net Assets

153,750

149,550

144,650

140,200

137,300

EQUITY
Capital
Retained Earnings
Total Equity

200,000
3,750
203,750

200,000
4,550
204,550

200,000
4,650
204,650

200,000
5,200
205,200

200,000
7,300
207,300

FIXED ASSET
Cost
Accumulated
Depreciation
Book Value Of Fixed
Asset
Total Assets
LIABILITIES
Trade & Other
Payables
Total Liability

CURRENT RATIO:

Current Ratio = Current Assets / Current Liabilities

For the five years:

ITEM
Current Asset
Current Liability
Current Ratio

CURRENT RATIO
YEAR 1
YEAR 2
YEAR 3
YEAR 4
YEAR 5
165,750
168,550
170,650
173200
177,300
50,000
55,000
60,000
65,000
70,000
3.32

3.1

2.84

2.66

2.53

From this table, we can conclude that in the 1st year, the company has TK 3.32 in current assets for every
TK 1 in current liability, or we could say its current liability covered 3.32 times over. And for the rest four
years it has decreased. A low ratio indicates low liquidity, but it also means that less resources are sitting
idle, which is good for the company.

PROFITABILITY RATIO

PROFIT MARGIN:
Profit Margin = Net Income / Sales
For the five years:

ITEM
Net Income
Sales
PROFIT MARGIN

YEAR 1
7,500
52,500
14.29%

PROFIT MARGIN
YEAR 2
YEAR 3
9,100
9,300
59,500
63,000
15.29%
14.76%

YEAR 4
10,400
70,000
14.86%

YEAR 5
14,600
77,000
18.96%

From the above table, we see that in the 1st year, the profit margin for the company is 14.29%. This
means that the company generates a TK 14.29 in profit for every TAKA in sales. A relatively high margin
is obviously desirable and from the table it is seen that profit margin has been increasing, while a little
decrease is there in the third year.

PROFIT MARGIN IN 5 YEARS

18.96%
20.00%
18.00%

14.29%

15.29%

14.76%

14.86%

PERCENTAGE

16.00%

Year 1

14.00%

Year 2

12.00%

Year 3

10.00%
8.00%

Year 4

6.00%

Year5

4.00%
2.00%
0.00%
YEAR

RETURN ON EQUITY:
Return on equity (ROE) is a measure of how the stockholders fared during the year. It is the true
bottom-line measure of performance (Ross, Westerfield, & Jordan, 2010). ROE is usually measured as
follows:
Return on Equity = Net Income / Total Equity
ROE for the five years:

Net Income
Total Equity
ROE

Year 1
7,500
203,750
3.68

RETURN ON EQUITY
Year 2
Year 3
9,100
9,300
204,550
204,650
4.45
4.54

Year 4
10,400
205,200
5.07

Year 5
14,600
207,300
7.04

From this table, we conclude that in the 1st year, for every TK in equity, the company will generate 3.68
% in profit and it is increasing for the continuous 5 years

RETURN ON EQUITY IN 5 YEARS

7.04

8
7
PERCENTAGE

6
5

4.45

4.54

Year 1

5.07

Year 2

3.68

Year 3

Year 4

Year 5

2
1
0
YEAR

RETURN ON INVESTMENT:
Return on investment (ROI) deals with the money invested in the company and the return realized on
that money based on the net profit of the business (Entrepreneur, 2012). It is calculated as follows:
Return on Investment = Net Income / Total Investment
= 7,500/ 294,000
= 2.55 %

RETURN ON INVESTMENT
2.55 %

TOTAL INVESTMENT
NET INCOME

TOTAL ASSET TURNOVER RATIO:

Total Asset Turnover = Sales / Total Assets
TOTAL ASSET TURNOVER RATIO
YEAR 1
YEAR 2
YEAR 3
YEAR 4
YEAR 5
52,500
59,500
63,000
70,000
77,000
203,750
204,550
204,650
205,200
207,300

ITEM
Total Revenue
Total Asset
Total Asset Turnover Ratio

25.76

29.09

30.78

34.11

37.14

From this above table, we see that for every TK in assets, the company generated 25.76% in sales in the
1st year. And it has been continuously increased for the first five years.

BREAK-EVEN POINT
It is the level of sales at which revenue equals expenses and net income is zero (Horngren, Sundem, &
Sratton, 2002)
Break-Even Point (in revenue) = Fixed Cost/ Contribution Margin Ratio

ITEM
Fixed
Cost
CM Ratio
BER

Year 1
6,000
0.68
8823

BREAK-EVEN REVENUE
Year 2
Year 3
6,500
7,000
0.69
9420

0.69
10145

Year 4
7,500

Year 5
8,000

0.68
11029

0.68
11765

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