3D VISUALS |PROFESSIONAL CONSULTANTS |DECORATING PACKAGES

Entrepreneurship
MGT368
Section: 2

Submitted to:
Muhammad Maruf Ibne Wali
Lecturer, Department of Management
School of Business & Economics, North South University

Submitted by:
Name ID
Nafisa Amin 1812198030
Nurea Meherin 1731768630
Wasif Saleh 1811218030

Date of submission: 17/01/21

Table of Contents
Introduction..........................................................................................................................................4
Names & Addresses of the Principals...............................................................................................5
Nature of the business.......................................................................................................................5
Statement of Financing Needed........................................................................................................6
Statement of Confidentiality Report.................................................................................................7
Business Model......................................................................................................................................8
Business Model Canvas.....................................................................................................................8
Pricing Model....................................................................................................................................9
Social Goal.......................................................................................................................................10
Sustainability...................................................................................................................................11
Eco-friendly.....................................................................................................................................12
Ethical.............................................................................................................................................12
Business Environmental Analysis.......................................................................................................12
Future Outlook & Trends...............................................................................................................12
PESTLE Analysis............................................................................................................................12
Economic.........................................................................................................................................13
Social...............................................................................................................................................13
Technology......................................................................................................................................13
Environment....................................................................................................................................14
Legal................................................................................................................................................14
Threat of new entry.........................................................................................................................15
Bargaining power of customers......................................................................................................15
Bargaining power of Suppliers.......................................................................................................15
Competitive rivalry.........................................................................................................................15
Threat of substitution......................................................................................................................15
SWOT Analysis...............................................................................................................................16
Strength.......................................................................................................................................16
Weakness.....................................................................................................................................16
Opportunities...............................................................................................................................16
Threat..........................................................................................................................................16
Industry & Market Analysis.......................................................................................................16
Stake Holders Analysis....................................................................................................................17
Description of Ventures......................................................................................................................18
Mission............................................................................................................................................18
 Vision...............................................................................................................................................18
Size of the business..........................................................................................................................18
Office Equipment............................................................................................................................18
Background of entrepreneurs...........................................................................................................0
Marketing Plan.....................................................................................................................................0
Product..............................................................................................................................................0
Pricing...............................................................................................................................................1
Promotion..........................................................................................................................................1
Place..................................................................................................................................................2
Distribution.......................................................................................................................................2
Service delivery model..........................................................................................................................2
Machineries & Equipment................................................................................................................2
Names of suppliers of raw materials.................................................................................................3
Operational plan...................................................................................................................................3
Authority of Principals.....................................................................................................................5
Human Resource Management Plan....................................................................................................5
Management/Team Background......................................................................................................6
Introduction
Name & address of the business: Our company’s name is "Plush Décor". This will be a one-
stop online shop in the form of an app where consumers can conveniently access the interior
design platform. Our office will be located in Bashundhara R/A Block: A, near North South
University.

Names & Addresses of the Principals

• Wasif Saleh- (Chief Executive Officer,
CEO) Bashundhara R/A, Block: C, Road:
03.

• Nurea Mehrin Meghla- (Chief Financial Officer, CFO)

House- 381, Road 9A, Block- D

• Nafisa Amin- (Chief Marketing Officer, CMO)

3/2 Eastern Panaroma, Segun Bagicha, Dhaka.

Nature of the business

Our company will be focused on a collaboration of 3 people. Essentially, it is a one-stop online
shop in the form of an app where consumers can conveniently access items related to interior
design, such as paint, tiles, furniture, curtains, toiletries, etc. Customers normally have to search
for their desired products at various specialized shops, which would take more time, and this is
the reason for selecting this particular product. It was because of its beauty. The “Plush Décor"
app will be a luxury icon. That's why we're going to concentrate primarily on the upper middle
class and high income earners. We know that completion will inevitably come, but we hope to
resolve it by being loyal; by maintaining a strong customer relationship without sacrificing the
standard of service at an affordable price.
Statement of Financing Needed

We need an office to function for our company. So, our big investment will be in our office
leasing, equipment, web developers, and brand promoters. The largest investment will be the
advance charge that we pay for the office. It is projected that our overall initial investment will
be approximately 3 million. We depend mainly on investors and the rest will be handled by us.
The areas where we will spend most of the time are explained below:

• Office: Our main investment will be to rent the office. So, we've got to pay a huge
amount of advance payment along with a monthly rent. We're going to rent a nice
location so that we can connect places easily. That's why the payment would be higher
in this field of investment.

• Equipment: We have to buy some equipment for the company, such as desktop,
laptop, air conditioner, printer, etc. We will need to buy a coffee machine, a table, a
chair, a sofa and lights, etc.

• Interior design: Another huge investment will be in our office interior design. We're
going to decorate our office with an interior designer to cut a decent portion of our
investment.

• Brand Promoter: We are a young business on this platform, so we are willing to

invest in our marketing field.

• Web developer: We must employ skilled web developers to create content, design
graphics, build websites, etc. Also, we need few more employees to handle the
delivery system and management. So, we've got to deal with their monthly salaries
and other incentives and increments.
Statement of Confidentiality Report

This agreement acknowledges that the information given by “Plush Décor" in this business
plan is exclusive to this business and classified; thus, anyone reading this plan agrees not to
disclose any information in this business plan without the written permission of the " Plush
Décor" BOD. The reader of this business plan also agrees that the information contained in this
business plan, other than information in the public domain, will cause significant harm or
damage and will be held in the strictest confidence.

Upon request, this document is to be immediately returned to “ Plush Décor”.

Signature:

Name:

Date:
Business Model
Business Model Canvas

Key Key Value Customer Customer

partnership Activities Proposition Relationship Segment

Investors Home service Upper Middle

class

Providing

Interior designing

Interior
designers Paints, tiles, toiletries Interior

with exclusive Online order system High

Furnitures, curtains, design Income

Lighting, including Discounts earners

customization

Bank options in Membership cards

affordable

price. Communication&

Government Feedback

Transport

Company
Key Channels
 Resources

Telecommunication,

Human Resource Email, social media

Technology &

equipment

Cost Revenue

Structure Stream

Employee salary Service based

Our revenues are based on predictable service provided

by our app. So, this will be the main source of our

Marketing campaigns revenue stream.

Transaction
cost

Equipment cost

Advance payment
Pricing Model

Interior designing:

Premium (Start from) 5,00,000/- tk

Furniture

Premium (start from) 80,000/- tk

Tiles (start from) 150/- tk/sq

Paint (start from) 5,000/- tk/drum

Curtains 7/9’ (starts from) 4,000/- tk/piece

Toiletries all &bath fittings (start from) 90,000/- tk/per

Social Goal
Any company should have some social goals and objectives that can be of value to society. The
social aim of our company is to raise the overall community understanding of how quickly
young people come up with new ideas. Another social purpose is to offer decent services to
society. Our goal of this company is to gain publicity in a competitive market through media
coverage. We're still going to try to provide some unique service that gives people ideas to get
interested in the company of some unique products. We're going to inspire young generations to
get involved in this kind of business and make it easy for them to excel in their lives. This will
give our workers a sense of accomplishment and encourage them to focus on work.
Sustainability
Company sustainability is also known as corporate sustainability, which handles and
coordinates environmental, social and financial criteria. In a wider sense, the three foundations
of sustainability are known to be social and economic, and we are striving very hard to achieve
the triple bottom line in order to be competitive in the sector. The target of our company
sustainability requires a longer timeframe for return on investment but, once initial investment
is made, it can potentially lead to higher profitability. Our investment in social ethics practices
may initially cost our business capital, but will usually lead to improved demand branding and
public relations, both of which appear to lead to “Plush Décor" profitability.
Eco-friendly
Our company will be very eco-friendly because the customization option that we will add will
prefer the customer's wishes first. Our marketing department can enable the consumer to
make the right decision according to the customer's preferences. Even, we're going to try to
get the best support through the app. We will not sell or use any goods that damage the
environment or society in our business.

Ethical
To boost income, most IT business people use fraud policy and attempt to obtain personal
information from consumers or offer low-quality ingredients, or whatever is unethical in our "
Plush Décor " so we will only provide the service that will please our customers and there will
be a strict company policy to work with ethical service delivery processes.

Business Environmental Analysis

Future Outlook & Trends
At first, our business in Dhaka will be limited. Initially we will try to emphasize the city of
Dhaka and we want to see our business as the top company based in the city and our goal is to
make our business as popular so that future generations will also think about this kind of
business first to succeed.

PESTLE Analysis
• Political: If we look at the political situation of our country in recent years, it gives us
optimistic views. Nowadays, the political situation of our country is still very peaceful
and business-friendly. Political aspect plays a very important role in any kind of sector.
The government of Bangladesh also encourages people to come and do business, both
domestically and abroad. Bangladesh is a democratic country in the world. One big issue
is that when governments reform that law and order, as well as changes to the rules and
regulations of business, this is a big obstacle to doing business in our country.
Economic
Another important factor that has a direct effect on the company. Every courtier's business depends
mostly on their economy. The stronger the economy, the more stable and profitable the company. It
is definitely a positive sign that our country's economic situation is improving on a regular basis.
Bangladesh Economic growth is also on the rise. Another positive reason is that the upper middle
class income is increasing, and the estimated rate of income growth is 7.65 per cent. The
inflation rate of the last five years has been in a really strong condition. The unemployment
rate is also dropping due to the declaration by our present government that they will ensure that
no one is unemployed.
Social
The people of Bangladesh are now lovers of gadgets. Now they're more free to use and make
smart use of all sorts of software and others. They are also familiar
with foodpanda, Pathao, Shohoz, Uber, etc., all of which are applications-providing services.
Most teens love to order or book via this app. They prefer to order, then run shop to shop, and an
intense booking cab that they prefer to book via a more secure app. Today, this is a common
scenario in our world.
Technology
Technologically, we are sufficiently developed, our sector has improved a lot and they have taken it
to a higher level. The first condition is to have a good technological understanding if any nation
wants to develop any business sector. We have a good hand in Bangladesh because we take a look at
our surroundings and we will see that technology can make our daily lives so easier. After providing
our service, we can get feedback from our customers. Anyone can order from Dhaka City from our
social media page and within a short period of time we will deliver the product or service to them.
Environment
We will keep in mind the environmental factor; keeping our environment clean and free of
corporate contamination is our first priority. There is a certain environmental law that will
ensure this. But we should worry about certain environmental factors such as environmental
laws and regulation, then global warming and other environmental issues are a global level.

Legal
We can guarantee that we will not do any kind of business that will have a bad impact on our
country's economy. We will always clear out tax on time. We will ensure that our company
does not violate any legislation and regulations in our nation. And we're not going to allow
any employees to work more than eight hours in a day
SWOT Analysis
Strength
Our first focus is on our personalized service. In our country, most interior designers have
fixed designs that are unlikely to be attractive but popular. So, we're focused on consumer
choice. Another thing that lies underneath our strength is our price. We offer these goods and
services at a regular price. And our marketing officers are another strength. They are well
trained and have the experience to satisfy the consumer.

Weakness
We take our vulnerability as our challenge to maintain on this business platform. Our biggest
drawback is that we have come up with a brand new startup, but rivals can come up with more
convenient ideas. Which is going to be very competitive. While we have ample manpower to
meet the challenges, even for premium orders, it is always risky, as a start, to deal with new
types of services on the mass market. So, we've got to make a good impression and run with a
great momentum.

Opportunities
In our country we are now advanced with technologies and day by day it increasing. Also, we
use so many applications in our daily life. So, we are actually rely much on app based product
and services. Though our target market are higher income earners, they don’t have much time to
spend on this kind of things which is our job. So, they want a platform whom they can give it.
And we are here for them in a manner to satisfy them. These kinds of products are available in
our platform they are mostly customized.

Threat
The threat is likely that we will compete with more developed brands, and so many entrepreneurs
are likely to launch this kind of application. Another threat is that we are launching a new brand
in this crowded market so that the risk is higher.

Industry & Market Analysis

After a market study, we know about the competitors in our company and then we choose the
location for our business in Bashundhara R/A. In Dhaka, we find that there is no other app where
the same categories of services are offered as ours. We can easily draw customers to this place
through university lobbying for ICCB functions, etc. In Bashundhara, we've seen that there are
villas, offices, restaurants, buildings under construction, and from our office, we can easily set
up a campaign in the places we want. So, for these reasons, we decide to set up our business in
the Bashundhara R/A sector.
Stake Holders Analysis

Keep Satisfied: Manage closely:

 Local law enforcement  Customer

 Government  Investors

 Police  Partners

 Local authorities  Community

 Corporate office

Monitors: Keep Informed:

 Employees  Partners

 Competitors  Banks

 Suppliers

We need to keep local law enforcement, government, police and local authorities happy with our
business. We would keep them happy to receive some political and social advantages in
exchange for the provision of basic goods that can be shared by the unorganized general
population and to shield ourselves from the social problems that they can solve.
We need to handle clients, investors, creditors, associates, the society and corporate offices
closely in order to achieve their satisfaction and gain more benefit and popularity.
We will track the workers and suppliers closely as well. We will monitor the employees to
inspire them to operate, the rivals to beat them and win more customers than them and the
suppliers so that we can make good promises with them in order to acquire good quality
ingredients.
We will always keep our Partners and banks updated so that we can keep a proper record of our
financial sector.

Description of Ventures
Mission
Plush Décor’s Mission Statement is to deliver the highest quality of goods and services at an
affordable price

Vision
Our vision is to improve our client's interaction. To have the greatest quality product and best
facilities in this industry would allow us doing that. This continually improves each part of our
company in order to ensure our long term success themselves.

Products:

 Interior Design  Furnitures

 Paints  Curtains
 Tiles  Toiletries

Size of the business

When we are beginners, in this industry, we will retain the medium scale. We will
steadily extend our enterprise. Upon achievement of the target, different goods or services
will likewise be launched.

Office Equipment
As we open a new company, we need some equipment for our office.

 Computer  Laptop
 Air conditioner  Sofaset
 Shelf  Printer
 Chair  Table
 White Board  Fan
 Office appliance  Internet connection
 Instant power supply  Coffee machine
Background of entrepreneurs

North South University (Finance)

Wasif Saleh Experience: Marketing officer of Royalty
Bangladesh
Contact: 01630919159
North South University (International Business)
Nurea Mehrin Meghla Experience:
Contact:
North South University (International Business)
Nafisa Amin Experience:
Contact:

Marketing Plan
Product
Plush Décor is an online interior design hub. It is a one stop online shop in the form of an app
where customers can easily get access to any type of products related to interior decoration for
example, paint, tiles, furniture, curtains, toiletries, and etc. Usually customers would have to
search for their desired items at different specialized shops which would consume more time.
Plush Décor limits the time spent on countless shops since there a variety of different specified
products under one roof for consumers to enjoy. Therefore, someone who might need to
purchase paint as well as new showerheads can easily do so through the Plush Décor app, which
will directly connect to the relevant shops on our app and showcase the appropriate items of the
customer’s choice. The app will feature the products of choice of the customer in 3D according
to their preferences so that the customer gets a complete visual of what they will be playing for,
thus increasing reliability. The customers will need to make an account on the app during their
first use after which they are welcome to the Plush Décor world for life. Additionally, customers
are at liberty to consult our professional interior decorators for any kind of queries they might
have or confusion that they might face. Customers can also avail packages where they will be
offered a range of products and services catered to their needs and wants.

Pricing
Since our target audience are the high income earners and the upper middle class of Dhaka, we
will be charging premium prices from our customers. At first we will be contacting various
retailers in the interior décor industry with good quality products but low recognition. The
business contract will clearly mention that the companies who go into business with Plush Décor
will need to provide their products are a discount rate of 15% for displaying and selling their
products on our platform. Plush Décor will impose a mark-up of 10% on the price (after
discount) of each product87, which will be our revenue for the business.

Promotion
Since our venture is an online shop, we are more inclined to do our promotions online rather than
expensive offline promotions. Online promotions will be cost efficient as well as a quicker way
of reaching more of our target audience through demographic targeting, thus helping us to track
and measure our results.

 Social Media: Social media platforms like Facebook and Instagram will be used to
introduce and promote our app to potential customers. We will have a greater reach this
way as the majority is of the population is online now, thus improving our chances of
higher conversion rates. Still pictures and video form of content will be used to attract
more traffic and a result our brand recognition will improve as well.
 Content marketing: We will be publishing content related to Plush Décor on publications
such as “Showcase” and “Interior Knowledge” to promote our app to attract the attention
of readers.
 Direct Messaging and E-Mail Marketing: By collecting date through surveys and other
sources we will be sending messages and emails directly to the devices of potential and
regular customers.
 Google Ads: By using digital ad banners, SEO and SERP Plush Décor will be promoted
on Google. Therefore, someone searching content associated to interior decorations will
be exposed to our advertisement within our chosen demography and geographic location.

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  YouTube: We will create digital advertisements and broadcast the ad in between
YouTube videos, especially the ones related to interior decorations, to peak our target
customer’s interest. The addition of CTA features will make it more accessible for our
customers to communicate with us directly.
 Influencer marketing: We will be contacting one or two well-known influencers whose
content are based on interior decorations, have a good reputation, and a large following to
promote Plush Décor. This way we will have a greater reach to customers within and out
of our target demography.

Place
Since our venture is based online, it will only be available on the digital space, which is not only
convenient during the Covid-19 pandemic but also for the pandemic is over. Customers will have
the comfort of staying indoors and renovating their homes as they would prefer.

Distribution
The products will be directly distributed from the individual designated shops of each product to
the homes of the customers who ordered. The shops are located at various areas around Dhaka,
and all products will be transported to the final destination with the use a of third party delivery
company.

Service delivery model

Since Plush Décor is an online based shop, our services will be conducted through the digital
space and thus will not need any physical raw materials in the process. However, there are some
key elements we will be needing for our operations in order to conduct business.

Firstly we will need to develop our website and app in order to conduct our business and
properly communicate with our customers. The customer will be able to open their account in
Plush Décor with the assistance of our well-developed app and/or website and use our services
for their purposes. Algorithms will be set up by our IT partner to display the best suited products
to the customers according to the specific features they choose.

Machineries & Equipment

We will be needing a just essential machineries and equipment to carry out the business activities
since we will be solely online based. We will be renting an office in Bashundhara R/A which we
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will decorate the way the team wants to in order to keep morale up. We will need to purchase
laptops, desks, chairs, file cabinets, ceiling fans, lights, boards, visiting cards and etc. Therefore,
our initial cost will be high but it will be dispersed over the years.

Names of suppliers of raw materials

The raw materials needed for Plush Décor are mainly the app, the website, and the equipment
needed to carry out the business activities. Echo Studios will be the IT partner for Plush Décor to
develop the website and the app.

A flow is presented to illustrate the whole service delivery process:

Step 1: Download the Step 6: Provide contact

Step 7: Select payment
app or open the details like address,
method.
website. phone number etc

Step 2: Make an
account with individual Step 5: Provide Step 8: Track the
ID and password. necessary information product while waiting
about product features. for it to be delivered.

Step 3: Browse the app Step 9: Pay through

Step 4: Select the
or the website for bkash or the bank after
preferred product(s).
desired product(s). products are delivered.

Operational plan
The main focus of the business will be to make it easier for users to improve their interior décor
needs by providing the best service to increase customer satisfaction. Plush Décor will employ
the necessary trained and experienced staff needed to conduct day to day business activities
successfully. We will be contacting various businesses in the home decoration industry with
whom we wish to do business. The firms we will go into business with will be providing a
certain percentage

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Bangladesh is an emerging country with a lot of local vendors selling quality products without
recognition while also facing heavy competition from foreign businesses. Plush Décor will reach
out to these vendors and go into contract with them. We will be displaying the products on our
website and the app, where the customers will be able to see them in 3D on their devices from
the comfort of their homes. If an order is placed for any product, the system will immediately let
the corresponding vendor know about the order placement, for which they will have 2-5 working
days to deliver the product to the customer and also set it up once it has been delivered. A third
party delivery company will be used to deliver the products safely to the destination. The items
will be shown as “out of stock” if it not available in inventory of each designated vendor. The
vendors will have their own personal access to the server where they can update their respective
inventory for each product at hand. The app will show the whole process till the product is
delivered and have been paid for, which will help the customer track their ordered products. The
payment can be made digitally through the Bkash app or transferred through the bank account.

At Plush Décor, our target sales for the first year is between Tk. 8 lac to Tk. 10 lac. During this
time, we intend to secure at least 10 loyal customers. We hope to gain brand recognition through
our marketing activities in the first year and eventually gain momentum through positive word of
mouth through year 2 and 3. In the next 5 years, we hope to expand

We will utilizing different types of technology in our business activities. We will be developing a
website along with our very own application where customers will be able to see the products of
their choice and attain our other services as well. Furthermore, since we will be using online
methods of payment, all our financial transactions will be done online. Since a high percentage
of the Bangladeshi population has Bkash accounts and/or bank accounts, it will be convenient for
them to conduct transactions online. Additionally, almost all of our marketing and
advertisements will be done online for effective promotions of our brand. It will help us to reach
more customers in the fastest and most cost efficient way possible.

The biggest risk we will face is from the physical stores themselves. This is because our target
customers are mostly the high income earners and upper middle class society of Dhaka who will
prefer to do shopping online. However, some of them might want to go to the physical stores to
personally see the products and make their purchases. So the physical stores for home décor will
be our competition. However, our platform will be providing almost all interior decoration

4
services and options all in one site, therefore customers will not need to roam to multiple
showrooms for their desired products.

Authority of Principals
The authority of each partner has been stated in our agreement. Since all three partners have
invested equally, it has earned each of us equal shares of benefits as well as losses and liabilities.
Each partner at Plush Décor has equal decision-making authority. In the designated divisions of
the company, each partner carries out individual duties. They have the full authority to operate in
compliance with their own decisions. However, no significant change in organization can be
made in the absence of any partner. The sign of each partner must be on every contract or else it
will be deemed void.

Human Resource Management Plan

The authority of each partner has been stated in our agreement. Since all three partners have
invested equally, all benefits as well as losses and liabilities will be shared equally. Each partner
has equal decision-making power and authority. In respective divisions of the company, each
partner carries out individual duties. They have the full authority in those departments to operate
in compliance to their own decisions. Although, in the absence of any partner, no significant
change in organization cannot be made. The sign of each partner must be on all contracts,
otherwise it will be deemed void.

Wasif Saleh
CEO

Nurea Meherin Nafisa Amin

CFO CMO
5
In order to smoothly run the business, Plush Décor will be hiring a third party IT firm who will
be working on the servers to make sure the website and the app is working perfectly round the
clock for our customer’s accessibility. Additionally, we will also be hiring two consultants who
will be available to help the customers with any kind of query about which products to choose,
which brand is better, what color paint goes with the furniture and etc. Lastly, an employee will
be hired to handle customer feedback.

Management/Team Background
Name of partner Position Qualification Check signing power

Wasif Saleh CEO Major in Finance Yes

Major in International
Nurea Meherin CFO Yes
Business

Major in International
Nafisa Amin CMO Yes
Business

Organizational Plan:

 Partners of Plush Décor

Form of Ownership:

The three of us decided to open this organization Plush Décor together to assist people in making
their home décor dreams into a reality. We are operating as an online platform, in the form of an
app where there are products related to interior decoration, where the current and potential

6
customers can easily access them anywhere they feel like. Our business is formed as a
Partnership business.

Terms of Agreement:

As this is a partnership business, the agreements are presented in a written deed. The agreements
of Plush Décor include the following:

 Share of Profit and Losses

 Daily Operations

 Contributions of the Partners

 Formation and Termination of Partnership Agreement

 Steps to be taken of dispute

Identification of Partners:

The following table contains the contact details of the Partners:

NAME MOBILE ADDRESS EMAIL

NUMBER

Nafisa Amin 01753419550 3/2,Eastern nafisaamin1998@gmail.com

Panaroma,Segun
Bagicha, Dhaka

Nurea Meherin 01853699766 House-381,Road nureameghla1998@gmail.com

9/A,Block-D,
Bashundhara
Residential Area

Wasif Saleh 01630919159 908-Kulsuma wasif0178chy@gmail.com

Bhabon,
Biswaspara, Clonel

7
 Jonesroads,
Chittagong

Authority and Control of Partners:

POSITIO
N
NAME QUALIFICATIONS CHECK SIGNING
POWER

NAFISA AMIN CMO Major in International Yes

Business

NUREA CFO Major in International Yes

MEHERIN Business

WASIF SALEH CEO Major in Finance Yes

Team Member Role and Responsibility in Organization:

Management plays an important role in the organization and considerably will play an efficient
step to ensure that the activities are done properly. Every organization has a hierarchical
structure of the management team. This structure of an organization will help to manage the
activities and achieve the targets that are set. Hence, the partners play an important role to
determine how the different aspects of the organization will work and function simultaneously
altogether.

Name: Wasif Saleh

Position: Chief Executive Officer(CEO)

Qualification: Major in Finance from North South University

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Role in Business: Wasif Saleh will take care of the responsibility and the role of being the Chief
Executive Officer for the business. He will be responsible for managing the development and all
the other goals and strategies that are set for the long term, as per having the intention of being a
team player and make sure to increase the value of each other. He takes the responsibility of
managing and regulating the work of all the departments.

Name: Nafisa Amin

Position: Chief Marketing Officer(CMO)

Qualification: Major in International Business from North South University

Roles in the Business: Nafisa Amin will be the designated Marketing Officer of Plush Décor, as
she ascertains the innovative and good communication skills amongst the bunch and has the
ability to lead her team to be more effective and guide to better solutions to the problems, as well
as taking in the responsibility of guiding the sales management team, and the market research
and customer services. She makes sure that the sales target and objectives of the business are
met.

Name: Nurea Meherin

Position: Chief Finance Officer(CFO)

Qualification: Major in International Business from North South University

Roles in the Business: Nurea Meherin is an able and important part of our team who has proven
to engage in her work sincerely and is a critical and talented in her field of work. Her work is to
deal with the financial planning, managing the resources, budget and expenses control that are
needed.

Risk Management Plan:

Evaluation of the Weaknesses of the Business:

9
According to the research of the vital risks the business might face, there are certain aspects that
might cause hurdles in the business process. For instance, as Plush Décor will be acting as the
middle men between the shops and the customers, to get desirable products according to their
taste and preference, some customers might prefer to directly contact the shops rather than
browsing through the app to look over for options. Moreover, with the increase of the desirability
and the profitability of the shops, there might be a rise in the level of competition in the market
with development of apps with similar features and new shops offering competitive prices to
directly attract the consumers. Furthermore, the shops might even offer discounted prices of their
products and services to the customers directly, and be more promised to work without any kind
of sources.

Contingency Plan:

To avoid the possible lagging and discrepancies that the business might face in the long haul
there are certain management and back up plans that are in order to make sure the business is
running smoothly. To get a better response Plush Décor will provide loyalty cards to the
customers for repetitive use of our services, where they can avail various offers and discounts.
Moreover, our app will have the feature where the customers will have consultancy services
along with various options, which can save a lot of time and effort in finding the desired products
and services all in one platform with the option to save with our discounted prices.

Financial Plan:

Assumptions:

It is assumed that It is assumed that the tax rate is will considerably be stable and constant for the
next 5 years. With the expected growth and demand that Plush Décor is considered to achieve it
is assumed that the revenue growth rate is 10% yearly. Additionally, Bangladesh’s inflation rate
has been increasing by 5% each year hence, the expected expenses will increase by 5% each year
as well.

10
 DETAILS ASSUMPTIONS

Tax Rate 25%

Revenue Growth Rate 10%

Depreciation rate(straight-line basis for 5 years) 10%

Salaries growth rate 5%

Expense Growth rate 5%

Sales Forecast:

DETAILS 2021 2022 2023 2024 2025

BDT BDT BDT BDT BDT

TOTAL
REVENUE
14,20,0000 15,620,000 17,182,000 18,900,200 20,790,220

11
We expect to get a return of almost half of the investment of capital given initially of BDT 30
lakhs, in the first year of operations.

Cost of start-up (Initial Expense)

DETAILS UNITS COSTS PER UNIT TOTAL COST

Start-up Assets needed: BDT

Office Equipment 4 35,000 140,000

Start-up Expenses:

Office Rent and Deposit 1 year 600,000 600,000

Utilities Set Up 1 30,000 30,000

Software Program Set Up 2 20,000 40,000

Website and App Expense 1 25,000 25,000

Initial Marketing Expense 1 50,000 50,000

12
 Total Start-up cost = 885,000

Pro-Forma Income Statement:

Pro Forma Income Statement

Details 2021 2022 2023 2024 2025

BDT BDT BDT BDT BDT

Revenue 14,20,0000 15,620,000 17,182,000 18,900,200 20,790,220

Cost of sales:

Commission to
consultants 2,350,400 2,702,960 3,108,404 3,574,664 4,110,864

Gross profit 1,18,49,600 1,29,17,040 1,40,73,596 1,53,25,536 1,66,79,356

Operating expenses:

Staff salaries 720,000.00 756,000.00 793,800.00 833,490.00 875,164.50

Office rent expense 660,000.00 693,000.00 727,650.00 764,032.50 802,234.13

Utilities expense 360,000.00 378,000.00 396,900.00 416,745.00 437,582.25

Advertising and
promotion expense 780,000.00 819,000.00 859,950.00 902,947.50 948,094.88

Depreciation: 20,800.00 30,800.00 34,800.00 40,800.00 45,800.00

Computer equipment

13
(10%)

Depreciation: Office
equipment (10%) 7,000.00 10,000.00 10,000.00 12,000.00 15,000.00

Total operating
expenses 2,547,800.00 2,686,800.00 2,823,100.00 2,970,015.00 3,123,875.75

Operating profit 93,01,800 1,02,30,240 1,12,50,496 1,23,55,521 1,35,55,480.2

Tax rate (25%) 244450 341910 459876.5 597995.475 760605.1712

Net profit 92,77,350 98,88,330 107,90,620 1,17,57,856 1,27,94,875

Pro-Forma Balance Sheet:

Pro Forma Balance Sheet

Details 2021 2022 2023 2024 2025

ASSETS BDT BDT BDT BDT BDT

Property, plant &

equipment:

Computer equipment 208,000.00 308,000.00 348,000.00 408,000.00 458,000.00

Less: Accumulated
Depreciation 20,800.00 51,600.00 86,400.00 127,200.00 173,000.00

14
Office equipment 70,000.00 100,000.00 100,000.00 120,000.00 150,000.00

Less: Accumulated
Depreciation 7,000.00 17,000.00 27,000.00 39,000.00 54,000.00

Property, plant &

equipment - net 250,200.00 339,400.00 334,600.00 361,800.00 381,000.00

Current Assets:

Cash and cash

equivalents 2,806,710.00 3,906,030.00 5,456,359.50 7,402,834.93 9,810,876.44

Total current assets 2,806,710.00 3,906,030.00 5,456,359.50 7,402,834.93 9,810,876.44

Total assets 3,056,910.00 4,245,430.00 5,790,959.50 7,764,634.93 10,191,876.44

EQUITY AND
LIABILITIES

Equity:

Owner's Equity 2,100,00.00 2,100,000.00 2,100,000.00 2,100,000.00 2,100,000.00

Retained Earnings 92,77,350 9,88,88,330 107,90,620 1,17,57,856 1,27,94,875

Total equity 1,13,77,350 10,09,88,330 1,28,90,620 1,38,57,856 1,48,94,875

Liabilities:

Current Liabilites

Accounts payable 83,20,440 386,350.00 552,250.00 731,939.00 877,365.00

Total liabilities 83,20,440 386,350.00 552,250.00 731,939.00 877,365.00

15
Total equity and
liabilities 3,056,910.00 4,245,430.00 5,790,959.50 7,764,634.93 10,191,876.44

Cash Flow Projections:

Statement of Cash Flows

Details 2021 2022 2023 2024 2025

BDT BDT BDT BDT BDT

Cash at the beginning

of the year 2,100,000.00 2,806,710.00 3,906,030.00 5,456,359.50 7,402,834.93

Cash flow from

operating activities:

Cash Inflow

Receipts from the sale

of service 5,876,000.00 6,757,400.00 7,771,010.00 8,936,661.50 10,277,160.73

Receipts from website

advertisement 2,204,110.00 2,767,590.00 3,752,053.50 5,148,053.03 6,807,655.75

Total Cash Inflow

from Operations 8,080,110.00 9,524,990.00 11,523,063.50 14,084,714.53 17,084,816.48

Cash Outflow

16
Cost of sales 2,350,400.00 2,702,960.00 3,108,404.00 3,574,664.60 4,110,864.29

Office rent expense 660,000.00 693,000.00 727,650.00 764,032.50 802,234.13

Staff salaries 720,000.00 756,000.00 793,800.00 833,490.00 875,164.50

Utilities expense 360,000.00 378,000.00 396,900.00 416,745.00 437,582.25

Marketing,Advertisin
g and promotion
expense 810,000.00 819,000.00 859,950.00 902,947.50 948,094.88

Total Cash Outflow

from Operations 4,900,400.00 5,348,960.00 5,886,704.00 6,491,879.60 7,173,940.04

Net Cashflow from

Operating activites 3,179,710.00 4,176,030.00 5,636,359.50 7,592,834.93 9,910,876.44

Cashflow from
Investing Activities:

Net Cash inflow from

Investing Activities 0.00 0.00 0.00 0.00 0.00

Cash Outflow from

Investing Activities

Office equipment 70,000.00 30,000.00 0.00 20,000.00 30,000.00

Computer equipment 208,000.00 100,000.00 40,000.00 60,000.00 50,000.00

17
Utilities set-up 30,000.00 55,000.00 100,000.00 45,000.00 0.00

Software program set-

up 45,000.00 75,000.00 25,000.00 50,000.00 10,000.00

Website and app

designing expense 20,000.00 10,000.00 15,000.00 15,000.00 10,000.00

Total Cash Outflow

from Investing
activities 373,000.00 270,000.00 180,000.00 190,000.00 100,000.00

Net Cash Outflow

from Investing
Activities -373,000.00 -270,000.00 -180,000.00 -190,000.00 -100,000.00

Cash at the end of the

year 2,806,710.00 3,906,030.00 5,456,359.50 7,402,834.93 9,810,876.44

Sources and Applications of Funds:

DETAILS AMOUNT(BDT)

Total Funds Available 3,000,000

18
 Total Start-Up Cost 8,85,000

Total Funds Available for Operations 21,15,000

For Plush Décor it was estimated that the total funds required for the total start-up cost was
around 8,85,000 which would be wired around the costs of the initial asset requirements of the
business and the expenses including the rent, salaries and the miscellaneous expenses that are
needed to set it up. The owners of Plush Décor will invest around 10 lakh each for the business
from their personal funds for an equal stake of ownership in the business.

Breakeven analysis:

Break-even Analysis

Details 2021 2022 2023 2024 2025

Total Fixed Cost 660,000 693,000 727,650 764,040 802,235

Sales(Revenue) 14,20,0000 15,620,000 17,182,000 18,900,200 20,790,220

Variable cost 360,000 378,000 396,900 416,745 437,582

Breakeven

Performance Indicators:

2021 2022 2023 2024 2025

Current 19.86 29.28 43.56 62.33 75.62

Ratio

19
Total Debt to 0.05 0.04 0.02 0.01 0.01
Equity

Return on 22.67% 21.05% 20% 19.62% 18%

Assets

(ROA)

Return on 18.42% 19.71% 19.92% 20.82% 22%

Investment

Asset 2.08 0.7 0.62 0.43 0.32

Turnover

Appendix:

Letter to Investment:

Mr. X

Company X

Location X

Dear Mr. X,

I hope you are doing well and safe in this global pandemic. I appreciated for letting me speak
with you over call and giving me a chance to pitch my business to you. I am very excited to
show you my business proposal as to move forward in creating a mutual investment relationship
in the future.

I and 3 of my friends are planning for a long time to open up an online platform that will provide
interior designing solutions to everyone. We have done all the research we need and we are

20
hopeful that this initiative will become a success as we have envisioned for this venture. And to
begin our production lines your approval to invest in our business plan.

I am positive that after my appointment with you will find my business proposal desirable
enough to get on aboard with us in this new journey. We promise to make this journey as fruitful
for you as possible. It would be greatly appreciated if you could miss and discuss this plan in
person so we can take this forward if all goes well according to all of our best interest.

Sincerely,

Wasif Saleh

CEO, Plush Décor

Price list:

Interior designing:

Premium (Start from) 5,00,000/- tk

Furnitures

Premium (start from) 80,000/- tk

Tiles (start from) 150/- tk/sq

Paint (start from) 5,000/- tk/drum

Curtains 7/9’ (starts from) 4,000/- tk/piece

21
 Toiletries all ss&bath fittings (starting
from) 90,000/- tk/per

Market Research Data:

1) How often do you face difficulties to find suitable products for your home décor
according to your preference?

Diffi culty in fi nding suitable products

Most of the time Sometimes Rarely None

10%

10%

20% 60%

22
2) Would it be helpful if you could find all the desired products all in the same platform?

Finding everything in the same platform

Very Helpful Maybe Helpful Not Helpful 4th Qtr

27%

55%

9%

9%

3) Will consultancy regarding these products will be a of good usage?

Product Consultancy
Definitely will use it Might use this service
Will not need the service Might be time consuming

Might be time
consuming
30%

Definitely will use

it
50%

Will not need the

service
10%
Might use this
service
10%

23
4) Do the products you find related to home décor in different stores are pricey?

Pricey Products
Expensive products mainly Moderately pricey
Not Pricey No Comments

19%

14%
57%

10%

24