Business Plan of Handicrafts and Origami Production House

[Group Name: EQUITY]

SOUTHEAST UNIVERSITY

Business Plan of Handicrafts and Origami Production House

Syeda Khadiza Akter Course Lecturer

Course Title: Introduction to Business Course Code: BUS1111

Department of Bachelor of Business Administration School of Business Studies

Southeast University, Dhaka - 1213

Md. Towfiqur Rahman -------------------- ID: 2016010000139 Farhana Nazneen -------------------- ID: 2016010000116 S.M Tarek Isteak Tonmoy -------------------- ID: 2016010000130 Md. Mirajul Islam Shadin -------------------- ID: 2016010000134 Fuad Sadman -------------------- ID: 2016010000113 Rukonozzaman -------------------- ID: 2016010000129

BBA Program

Batch 42nd, Section: BUS1111 (D) School of Business Studies

Southeast University, Dhaka – 1213

Submission Date: April 19, 2016

Letter of Transmittal

Date: April 19, 2016 Dear Madam, This is our truthful declaration that our assignment on “Business Plan of Handicrafts and Origami Production House” which we have prepared is not a copy of any other assignment made by any other students. We also express our honest confirmation in support to the fact that the said assignment has neither been used before to fulfill to any other course related purpose not it will be submitted to any other persons nor any authority in future. Yours Truly, Md. Towfiqur Rahman [On behalf of the group Equity] ID: 2016010000139 Batch 42nd Section – D Department of Bachelor of Business Administration School of Business Studies Southeast University

Southeast University, Dhaka – 1213

Acknowledgement

At first I desire to express my deepest sense of gratitude of Almighty Allah. We are the students of Bachelor of Business Administration, Batch – 42nd, Section – D was assigned to prepare an assignment on the “Business Plan of Handicrafts and Origami Production House”. While Preparing such an assignment we learned a comprehensive aspect that how to build up a business. We had research subject and rush to different resources for gathering the information which are necessary for completing the assignment With profound regard we gratefully acknowledge our respected course teacher Syeda Khadiza Akter, Lecturer. School of Business Studies, Department of Bachelor of Business Administration. For her generous help and day to day suggestion during the survey. We also acknowledge the media, mobile, honorable personalities and sources that helped us cordially.

Southeast University, Dhaka – 1213

Executive Summary

This report is based on a business plan. To prepare the report we have decided to establish an organization named “Handicrafts and Origami Production House”. This organization will produce various types of products like Banner Making, Canvas Work, Lace Making, Toy Making, Card Making, Origami or Paper Folding, Floral Design, show piece, Home decorator products like flower vase, Origami Foldable Basket, Modular Lighting System etc. We are six members in our business plan. We all have equally contribute taka 3 lakh and in future we can increase the amount of money by taking the consent of our partners. In case if we face in any capital problem we can take loan from our friends and family. For our business our supplier will be different kinds of handicrafts company for that we can also import from foreign country or local market. We will set the reasonable price for our product so that customer can easily buy our product. We will distribute our products in online and offline way. If the customers want to buy product from online there will be a webpage for our business from where the customer can buy the products. Objectives We offer a host of products tailored to the needs of our customers. We believe that in order to succeed, a business needs a strong client base and therefore concentrate on achieving the above said. Keys to Success The keys to success are as follows-

• We focus on purchasing quality materials at minimum cost. • Charging competitive rates by our clients for the products. • Maintaining a favorable working condition for the employees and a good relationship

with suppliers and distributors.

Southeast University, Dhaka – 1213

Table of Contents

Serial No. Name of Topics Page No. 1. Introduction 1 2. Objectives of the Study

• Establishing Business • Business Problem • Overcome Business Problem

1 - 2

3. Limitations of the Study • Limitation of Time • Limitation of Knowledge • Limitation of Information • Limitation of Support

2

4. Organizational Profile • Name of the Organization • Location • Capital • Product • Partner • Employee

3

5. Findings and Analysis • Partnership Deed/Agreement • Sources of Fund • Marketing Mix • Customer • Supplier • Production Process • Pricing Strategy

4 - 8

6. Conclusion 8

Introduction

A business plan is a formal statement of business goals, reasons they are attainable, and plans for reaching them. It may also contain background information about the organization or team attempting to reach those goals. Business plans may target changes in perception and branding by the customer, client, taxpayer, or larger community. When the existing business is to assume a major change or when planning a new venture, a 3 to 5 year business plan is required, since investors will look for their investment return in that timeframe. In the sense that business involves the exchange of good, service or money for mutual benefit, we are all involve in business. Our business plan is about produce Handicrafts product. Handicrafts are unique expressions and represent a culture, tradition and heritage of a country. The handicraft industry is one of the important productive sectors. Various attempts have been made to define this board and diversified industry. The following definition strives to cover diversity and complexity of Handicraft Industry. Handicrafts and Origami can be defined as products which are produced either completely by hand or with the help of tools. Handicrafts are made from raw materials and can be produced in unlimited numbers. Such products can be utilitarian, aesthetic, artistic, creative, culturally attached, decorative, functional, traditional, religiously and socially symbolic and significant.

Objectives of the Study

The human element is the core of business. Business needs people as owner, managers, employees and consumers. People need business for the production of goods and service and the creation of job.

• Establishing Business: Establishing our business takes research and planning. If we take the time to understand what is required, we can make the best decisions for our business. There are many elements to consider when we establish our business, including the business structure and name that is appropriate for us. It's also important to ensure that we take the time to investigate premises and leasing options so we find the business location that will attract our target market. We also need to consider how we will finance our business and organize our banking.

• Business Problem: Starting a business is a big achievement for many entrepreneurs, but maintaining one is the larger challenge. There are many standard challenges that face every business whether they are large or small. These include things like hiring the right people, building a brand and so on. However, there are some that are unique to small businesses - ones most large companies have grown out of long ago. There’s nothing easy about starting own business. The road to success is a bumpy one indeed and we’re sure to encounter some problems along the way. There’s no need to worry, however, because every problem has a solution. Just like anything else, building our business is a process that takes a lot of work.

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• Overcome Business Problem: Before we even get started we need to develop a business plan. Our mission statement for what we want to achieve with our business needs to be very clear. If we don’t have set goals, we won’t have anything to reach for. We can build a business all we want but if no one knows about it, we’re not going to get very far. Developing a marketing strategy is a must. We need to cover all angles when it comes to marketing. However, we shouldn’t get so wrapped up in social media that we disregard conventional marketing means such as print ads, radio advertisements and more. To stand strong we need to have a marketing campaign that covers everything.

Limitations of the Study

• Limitation of Time: Our business is along with six party. The time limitation of our business is about 4 years. If the members of our party want we can extend the time limitation of our business.

• Limitation of Knowledge: Because we are doing business for the first time that’s why we don’t have enough knowledge on our business. That’s why we can’t run our business properly. And also we need to face so many problems.

• Limitation of Information: Because we are doing business for the first time we can’t gather all the information of business within a short time. That’s why we can’t maintain our business properly, because of this may be we have to face a big amount of loss in future.

• Limitation of Support: For doing business we need a huge amount of asset but sometime we cannot arrange enough assets for business that time if we don’t have any other way to collect money from different sources that’s called limitation of support.

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Organizational Profile

The Organizational Profile is a snapshot of your organization, the key influences on how it operates, and the key challenges it faces. Organizational profile or company profile essentially contains brief information about the history and evolution of the company, the performance history and anticipated performance in the future, the reputation of the company and details of the goods and services provided by them.

• Name of the Organization: The name of our organization is Handicrafts and Origami Production House. It is general type of Partnership business.

• Location: The location of our organization is in BAFWA Complex, Tejgaon, Dhaka – 1207. It is beside Dhaka Cantonment opposite of BAF Shaheen College Dhaka.

• Capital: The amount of total capital is 3 Lakh. But in case of necessity, all the parties on their mutual consent will be able to increase the amount of capital in future. All the six parties will supply capital of equal amount.

• Product: There are almost as many variations on the theme of handicrafts as there are crafters with time on their hands. Banner Making, Canvas Work, Lace Making, Toy Making, Card Making, Origami or Paper Folding, Floral Design etc.

• Partner: In our business we are the six partners. Their names are Md. Towfiqur Rahman, Farhana Nazneen, SM Tarek Isteak Tonmoy, Md. Mirajul Islam Shadhin, Fuad Sadman Rukonozzaman.

• Employee: For our business we need some employee. So we have hired about ten employees. Because our business is online and offline based business. If the customers buy our products from online to serve the products we need employee.

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Findings and Analysis

Partnership Agreement

The Partnership agreement of Handicrafts and Origami Production House

First Party

Md. Towfiqur Rahman S/O Md. Shafiqur Rahman 93, Akota Bhaban, North Dhamalcoat, Din Mohammad Colony, Dhaka Cantonment, Bhashantek, Dhaka – 1206 Second Party

Farhana Nazneen D/O A.K.M Golam Sarwar 203, West Nakhalpara, Tejgaon, Dhaka - 1207

Third Party

S.M Tarek Isteak Tonmoy S/O S.M. Momtaz Uddin Mogbazar Dillu Road, 9/10, Dhaka

Fourth Party

Md. Mirajul Islam Shadhin S/O Md. Abul Bashar Section - 7, Road No - 24, Uttara, Dhaka – 1230 Fifth Party

Fuad Sadman S/O Md. Rashidur Rahman Sarker Kadda, Gazipur

Sixth Party

Rukonozzaman S/O Md. Fazlul Hoque Sreepur, Gazipur

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The partnership agreement is entered into on February 9, 2016. The above mentioned six parties have agreed to form a partnership business named Handicrafts and Origami Production House. On the basis of the terms and conditions mentioned below and they have signed on this deed. The above mentioned six parties are adults, physically and mentally sound and are Bangladeshis by birth. All the six parties shall be bound by the terms and conditions of as contained in this deed of contract. Any conditions of the deed can be changed with the mutual consent of all the six parties.

The Terms and Conditions of the Agreement:

1. The name of the organization: Handicrafts and Origami Production House

2. Address of the business: BAFWA Complex, Tejgaon, Dhaka - 1207

3. Type or nature of the business: To produce different types of show piece, Home decorator products like flower vase, Origami Foldable Basket, Modular Lighting System etc. and conduct retailing and wholesaling business.

4. Amount of the capital: The amount of total capital is 3 lakh taka for the time being. But in case of necessity, all the parties on their mutual consent will be able to increase the amount of capital in future.

5. Supply of capital: All the six parties will supply capital of equal amount.

6. Distribution of profits and losses: The profit and loss of the business will be divided equally to all the partners.

7. Amount that partners will withdraw for service: All the partners will withdraw taka 15,000 for service.

8. Procedure for withdrawal of funds: All the partners will have to withdraw their funds monthly.

8. The name and address of the bank: Sonali Bank, Dhaka Cantonment, Dhaka - 1206

9. Operating the Bank Account: A current account will be open in the said bank against the name of the firm and Mr. S.M. Tarek Isteak Tonmoy, the third party will operate the account.

10. The fiscal year: The period from January to the 31st December will be considered as the fiscal year of the organization.

11. The final account: Every year within the 31st December, the final accounts will be prepared and will be audited by a Chartered Accountant.

13. Expected life of a Partnership: Our partnership business of Handicrafts and Origami Production House will be continue up to 4 years, after that if all the partners give their mutual consent then we can increase the life of partnership business.

14. Management and Directorship: All the six parties will be responsible for directing the business. But 1st party, Md. Towfiqur Rahman, will work as the Managing Partner. P a g e | 5

For this he will not get any extra allowance or remuneration. 2nd party will be the designer of the business, 3rd and 4th party will be the assistant manager of the business and 5th, 6th and 7th party will be the sales manager.

15. Inclusion of a new partner: If necessary, a new partner will be included on the consent of both the parties.

16. Death of a partner: If a partner dies, his lawful heir if wishes will be the partner of the business. But he has to sign the deed of contract and take the consent of the other party.

17. Repayment of Share: The dues of the dead partner have to be ascertained within next three months and it has to be repaid in six three-monthly installments.

18. Dissolution of the business: If there is a necessity of dissolution of the business, it has to be done by court order according to section (44) of Partnership Act 1932.

We, all the parties, accepting the terms and conditions of this deed have signed it consciously and in a sound state of mind in front of the following witness:

Md. Towfiqur Rahman Farhana Nazneen S.M. Tarek Isteak Tonmoy

Date: 09.02.2016 Date: 09.02.2016 Date: 09.02.2016

Md. Mirajul Islam Shadhin Fuad Sadman Rukonozzaman

Date: 09.02.2016 Date: 09.02.2016 Date: 09.02.2016

Signature of the two witness:

1) 2)

Syeda Khadiza Akter A.M Chowdhury

Lecturer, Southeast University, Advocate, Dhaka Supreme Court,

House – 64, Road – 18, Block – B 19, Circular Road, Dhaka

Banani, Dhaka – 1213 P a g e | 6

Sources of Fund

• Personal Savings: As we are the six members of this partnership business. We all the members will equally contribute 3 lakh taka. But in case of necessity, all the parties on their mutual consent will be able to increase the amount of capital in future.

• Friends and Family: As well as we need some extra source of fund for our small business for this extra source of fund we will borrowed from our friends and family. Borrowing from your friends and family is a good way for new businesses to get money. However, such borrowed fund brings an extra risk.

Marketing Mix

The combination of four elements or 4P – product, price, promotion and place (distribution) used to satisfy the needs of the target market and this is known as marketing mix.

• Product: Product can be a good, service or an idea including all the tangibles and intangibles provided in an exchange between buyer and seller. Our product is for personal and family consumption. For buying our product buyer will expend a little time to purchase as well as it is said that our product is consumer product.

• Price: Once a firm develops a product, it must set a price. So for our business the price should be regional so that our buyer can easily buy our products.

• Place (Distribution): We have set or product and product price so we also need to set the right place for distribute our product. Our business is a online and offline based business so if the consumers wants to buy our product they can easily buy from online and if they wants to buy in offline process they have to come to our shop.

• Promotion: Before consumers buy our product, consumers need to know about our products and its availability, characteristics or benefits. For that we need to advertise for our products by sharing products outlet. We can also do personal selling for our products promotion.

Customer

A customer may or may not also be a consumer, but the two notions are distinct, even though the terms are commonly confused. We will look after the all levels of customers like lower level until the higher level customer. All levels of customer can buy our product.

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Supplier

A party that supplies goods or services. A supplier may be distinguished from a contractor or subcontractor, who commonly adds specialized input to deliverables. Our supplier will be different kinds of handicrafts company for that we can also import from foreign country or local market.

Production Process

We will purchase the product from different kind of handicraft industries. After purchasing the products we will modify the products then we will sell it to our customers.

Pricing Strategy

A business can use a variety of pricing strategies when selling a product or service. The price can be set to maximize profitability for each unit sold or from the market overall. It can be used to defend an existing market from new entrants, to increase market share within a market or to enter a new market. Our price will be like the present market price.

Conclusion

As our business plan is about Handicrafts and Origami Production House, so the main purpose of this business is to make various types of hand made products for decorations as well as for different uses. This type of products attracts customers a lot. School/College or University students buy this kinds of product a lot. So as our concept we can say that our business will go very well and our business will approved by our society because this kind of products are very popular. And with the view of this concept the earning profit will also be good. And if our business product known to all people we hope that we can also extend the life of our business.

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