Bus Plan Edited

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Date: May, 2009

Ms. Robaka shamsher

Lecturer, school of businessIndependent university Bangladesh

12, Jamalkhan road,

Chittagong

SUBJECT: A business plan about

Dear Madam,

It is indeed a great pleasure for us to be able to hand over the result of our hardship of the

business plan on “COOL ZONE”. Our knowledge has increased immensely since the

beginning of the semester.

We take the opportunity to thank you very much for your kind cooperation, supervision

and suggestion in preparing this plan. We have enjoyed the whole program with Great

Spirit and enthusiasm.

We, fervently hope that you will find this plan worth reading. Please feel free for any query

or clarifications that you would like us to explain. Many documents are not attached with

this report. If necessary those can be furnished for more clarifications.

Thanking you.

Yours sincerely,

(ID#) 0731023

(ID#) 0811035

(ID#) 0831007

(ID#) 0831018

(ID#) 0831076

(ID#) 0831038

(ID#) 0831045



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At the very outset we would like to pay our solemn gratitude to the Almighty who has turned all

our effort into a great success.

This project report has given us the most valuable resource needed to become successful in

our professional lives and has taught us the art of creative thinking and the value of

hardship.

A special debt is due to out respected Faculty member and Course instructor Ms. Robakashamsher for providing us valuable guidance and suggesting us about accumulating the

preparation of this report. We would like to thank him for assigning us an exclusive topic that

has helped us to develop our business and marketing knowledge in a truly unique way.

Moreover we have been benefited form the help from many people in the evolution of this

report. They have gleesomely supplied insightful comments, helpful suggestions, and

contributions all of which have progressively enhanced this report.

Finally, heartiest appreciation goes to all our BUS-201associates and to all the special

people who motivated us.



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Title: Page No:



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The Following business plan has been formulated to obtain Tk.18,00,000 (Eighteen Lacs) in

venture capital from the investors to establish an entertainment club in Chittagong .It will

also serve as a formal outline for the first three years of club’s operation. A partnership

business has been chosen to maintain limited liability for the partners, combined with

various tax advantages. We will have five partners each partner will contribute Tk.2,

00,000(Two Lacs) and in total Tk.10, 00,000 (Ten Lacs) will be generated from all the

partners. Detailed financial projections show that we can repay the venture capital in 60

equal monthly payments at competitive interest rates. At the same time, there will be

sufficient profit to meet our goals of providing ourselves with both an adequate living and a

return on our investment. The funds we wish to borrow will be allocated to procure our

initial inventory as well as equipments, buildings purchase, interior designing, advertising

and working capital as indicated in this proposal. Due to limitation of funds we are

purchasing the building on installment basis. We think we are heading towards the right

direction and our investors can also invest on us for the following reasons-

1. Our market analysis research demonstrates the concept is sound and that we have more

than enough potential customers to make it work.

2. We have several unique marketing ideas, which should attract customers.

3. No competitor targets our customers systematically.



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INTRODUCTION

Name and Address of Principals .

The business consists of 7 (seven) owners. The names and addresses of the owners are as

Follows along with their respective designations.

1. Name: Shiblu Barua

Designation: Finance & Planning Director

Address: House no.510; Road no. 1; Block – „B‟

Chandgaon CDA R/A

2. Name: Salman Hasan

Designation: Finance & Planning Director Address: Flat# B-1,Panorama housing society,East

Nasirabad,Chittagong.

3. Name: Robin Saha

Designation: Managing Director

Address: 1221/A Hillveiw Housing Society; East Nasirabad

Chittagong

4. Name: S. M. Zainul Abedin Designation: Director

Address: 1221/C Hillveiw Housing SocietyEast Nasirabad; Chittagong

5. Name: Md . Moinul Karim

Designation: Director

Address: 183/B West Highlevel Road ; Lalkhan BazaarChittagong

6. Name: Afza Sharmin

Designation: Director

Address: 23, West Dewangipukur Par; Rahamatganj;

Chittagong

7. Name: Avishek Das Gupta Designation: Director Address: 20 north Nalapara, Shirazul Haque Building,

Chittagong.



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Nature of Business

Our business is a service-oriented business. It is a sort of small entertainment club or a

hang out spot for the people of different age that provides service to the customers.

Financial Indicators

We started the business with a capital of Tk.10, 00,000 (ten lacks) and we need loan of an

amount Tk.18, 00,000 (eighteen lacks). To begin this project we, the five owners are going to

contribute Tk.2, 00,000 (two lacks) each.

Statement of Financing

Investment from the partners 10,00,000

Venture capital 18,00,000

Total i.e. Start up capital 28,00,000



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2. COMPANY OVERVIEW

Formalities of Starting a Business

Before starting the business certain formalities are to be done. The documents that are

needed to start off a partnership business are all shown in the appendix with details along with

other information.

Vision

Our dream is to contribute with passion and ensure a dynamic club with quality service.

Mission

Our mission is to fulfill the demanding wants of juvenile people with great zeal and

enthusiasm.

Products and Services

“COOL ZONE” is all about giving its customers a real good time. It is a recreation club

where there would be a pool room, a DVD store and a fast food corner in the ground floor. In the

first floor we would be having a Dolby Sound system cinema hall and a small cyber cafe --- all

in one. Our pool accessories would all be bought from India. The CDs, DVDs and game CDs

would be brought from Web World in Chittagong. Our food items would all be prepared in our

own kitchen by our professional chefs and the raw materials‟ suppliers would be Minabazzar. On



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the other hand, for the arrangement of our first floor, the Dolby surround system is going to be

bought from The World Audio Center PTE Ltd, Singapore while all the computers would be

having broadband connection from Dot Com.

Strategic Goals and Objectives

As we are focusing hard on superior quality of our club there are certain things that we

have to make sure of. To keep up the high standard, our workforce must be highly skilled and

should perform their respective jobs sincerely with full devotion. If they lack professionalism, it

must be made sure that they are being properly trained. But our motto will be to recruit only

skilled workers. Our management should be active and alert as long as they are doing their

works. Because their slightest inefficiency might boil everything down to zero. All our raw

materials will be bought from good places, though it might be slightly expensive, but will be

done so just to maintain the standard. Keeping a substantial amount of profit we are ready to give

our customers the time that they have been longing for.

Size of the Business

As “COOL ZONE” would be an independently owned and maneuvered entertainment

club, it can therefore be called a small business. It is not at all going to be dominant in its

industry i.e. would not be controlling a large market share. Moreover it would be starting with a

moderate investment for that industry. Besides, our number of employees will not exceed more

than twenty.



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3. MANAGEMENT TEAM

Form of Ownership

It is a partnership business and the five partners will be sharing the total profit/loss

equally here.

Organizational chart



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Roles and Responsibilities of Members

Our three directors will be giving an estimated amount of money as investment and they

will be sharing the amount of profit or loss from the venture equally. Our Director Finance &

Planning will be in charge of the daily transaction and will report to our Managing Director. He

will also be planning different events, marketing strategies, looking after the salary payments and

different costs that will be incurred to run the club successfully. Our Managing Director will

supervise the total proceeding and will maintain liaison with different organizations and club

members of “COOL ZONE” as they will be our customers. He will also monitor different

strategies and will transfer different responsibilities to the employees.

Human Resource Requirements

One cashier

One pool marker

One competent cook

One manager for restaurant

Four waiters for restaurant

One operator for the cinema hall.

One ticket man

One salesperson

One operator for cyber computers.

One security hired from Group four.



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Salary and Other Benefits of Employees

Total payment for Human Resource Requirements

To motivate our employees we will give them commission or bonus according to their

performance and company profit.

One cashier 4000One pool marker 3000

One competent cook 4000

One manager for the Restaurant 4000

Four waiters for restaurant 1500 (each) x 4=6000

One operator for the cinema hall 3000

One ticket man 1500

One salesperson 2500

One operator for cyber cafe computers 2500

One security (hired from Group four) 4500

____________



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4. FINANCIAL PLAN

Cost control

The management will always monitor the service provided to the customers and the

expenses incurred in this regard. Management will also monitor the bill submitted by the

suppliers.

Income Statement forecast

PARTICULARS AMOUNT

Service Revenue 1,42,800

(-) Expenses :

(i) Salary 35,000

(ii) Building Installment 20,000

(iii)Electricity,gas,water,broadband 12,000

(iv) Interest payment to investors 25,000

(v) Other expenses 3,000

95,000

Net income before tax 47,800

(-) Income tax (30%) 14,340

Net Income after tax 33,460



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Balance Sheet forecast

ASSETS AMOUNT LIABILITIES AMOUNT

Fixed Assets: Partners capital 50,00,000

i. Pool table (40,000 x 4) 1,60,000

ii. Dolby Cinema Hall 4,00,000

iii. Interior design 8,00,000

iv. AC (56,000 x 6) 3,36,000

v. Television (28,000 x 2) 56,000

vi. Refrigerator 65,000

vii. DVD player 30,000

viii. Computer

(45,000 x 6)

2,70,000

ix. Building 30,00,000

x. Other Assets 3,00,000

xi. Cash 79,000

50,00,000 50,00,000



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The major risk that we can think of at this moment is that, if at the end of the year the

management fails to generate the break-even expenses then we will have to bear a heavy amount

of loss. But we have already calculated that if we can comprise at least 50 members then it would

be good enough to generate quite a substantial amount of profit each month and that is very

much possible by using our directors‟ own contacts. All these are happening, as we will be

concentrating greatly in our marketing strategies and quality service to our customers from the

very beginning of our business.

On the other hand, security is also a great problem in Bangladesh. So our security system

has to be spotted on. We will have one security from Group four. It might increase in to three

when we will be projecting movies in the first floor twice every week. We will maintain a liaison

with the Police Station to prevent uncalled-for incidence that may hinder our business.



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5. CAPITAL REQUIRED

USE OF FUND:

Machinery and Equipment

Pool Tables:

We would be bringing four Pool tables from India. Shown below is the standard size of a

pools table and each table will be attached with two standard pool queue and one set of balls.

One table will cost us 40,000 Tk. which means the total cost for four tables will be 40,000 x 4 =

1,60,000 Tk.

One of our Pool Tables that we have ordered



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Super Dolby Sound System:

We will be bringing Super Dolby Sound System from Singapore and getting it from

SONY (World Audio Center PTE LTD) Singapore. It will cost around Tk.3,00,000 (three lacs)

approximately including shipping cost and other custom formalities.

Sonny sound system

Interior Designing Firm:

We have decided to hire one of the prominent interior-designing firms „ORANJE‟.

The Address of Our Interior Designing Firm

They will be designing everything inside the

club and will also be installing furniture, lights,

paintings, kitchen etc and decorating the place to

make it attractive and eye catching. They will be charging

a total amount of Tk.5,00,000 for the entire interior designing. We have seen their plans and we

are quite convinced and confident enough that their work will create a lively impression among

our customers.



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Spilt Air-Conditioner:

We will need about 6 Split Air Conditioners 24,000 Btu/h each in total. After extensive

market survey we came to a decision that if we buy Gree AC it will be relatively cheaper and has

got good service reputation regarding durability and overall service of the machine.

Gree A/C that we are planning to buy

We are planning to buy six ACs, Tk.56,000 (each), and total cost for six of them together

will be 56,000X6 = 3,36,000 Tk.

Television:

We are Planning to buy Two Samsung Flat T.V of Tk.28,000 each for our ground floor.

The Samsung Flat that we are planning to buy

Total cost for two TV will therefore be 28,000 x 2 = 56,000 Tk.



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Refrigerator:

We are planning to buy two refrigerators for our restaurant. One is 15 liter, which will

cost Tk.25,000 and another one is 25 liter, which will cost 40,000 taka .

Whirpool Refrigerator that we are planning to buy

We will take whirpool refrigerator as they are offering us special discount for the entire

electronics item that we are planning to buy from their Company i.e. The whirpool Company

Samsung DVD Player:

We are buying a top class latest model DVD player of the latest model for our CD &

DVD corner, which will cost us 30,000 taka.

Samsung DVD playe



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Computers:

We will be buying six “Pentium duel core” computers with DVD -rom where each will be

costing 45,000 taka and the total cost for six computers will stand to 45,000 x 6 = 2,70,000 taka.

We will be buying our computers from SALTA.

It will also work as a retailer for our DVD store.

Names of Suppliers of Raw Materials

Our CD suppliers will be “Web world” and we will be bringing four pool tables from

India and the ingredients for our restaurant‟s food items would be brought from our retailers i.e.

“Minabazzar”.



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6. MARKETING PLAN

Product Forecasts

Marketing Research:

We have conducted a small marketing research where our sample size was fifty (50). Our

respondents were business professionals, students, and respondents from different other

professions.

Our objective behind doing this research is ---a

o To find what citizens consider as recreation.

o How the people of Chittagong rank the existing facilities offered by other clubs.

o The facilities they would like to see in a club.

o To come out with the possible answers that the people are missing and want to see

in a club.

Method:

The questioner is designed with both open-ended question & close-ended questions. The

questions are basically undisguised questions, which is clear and simple. The questions are easily

understandable, research related & based on the background analysis of the overall respondents.



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The research based on the questionnaire:

Findings and Analysis:

1. How often do you think you have no place for recreation?

Among the total respondents 60% think as always, about 12% rated as frequent and about 16%

think as sometimes as they were asked how often they think, they have no place for recreation. In

this case the researcher found that the average respondents rated that we have a real vacuum for

quality places where citizens of Chittagong can have an excellent recreational and entertaining

time.

1. If you were looking for fun/entertainment, where would you prefer to go?

Library

Club

Cinema

Shopping

If others please specify__________________________________

Market research

Always

Frequent

Sometime

seldom

Never



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Among the total respondents 58% wants to go to a club, about 22% rated want to go for cinema

if quality cinema is being projected and about 18% wants to go for shopping. The researcher

found that there is excellent scope of a venture if the venture is installing a club where dynamic

facilities can be given to satisfy the needs and demands of the young generation.

2. Do you think the clubs at present for the young crowd in Chittagong can satisfy the

young peoples’ demands?

Yes

No

If “No”, why? ____________________________________________

About 66% think negative regarding the service that the present clubs are offering to the young

people in Chittagong. They think that these clubs have limited options and facilities to attract

people in order to give them a pleasurable time.

Club58%

Cinema22%

Library

2%

Shop

18%

Market Research



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3. In a club what would you look for? (Please tick according to your own interest-------

not general interest.)

Pool

Music

Food

Dolby Surround System Cinema Hall

Dance

Video games

Other indoor sports

According to our respondents we found that in a club the Dolby Surround System Cinema Hall is

the most attractive option to the respondent. The second most attractive item to them is Dance

and the third most attractive one is the Food. So we found that there is a huge demand for the

Dolby surround system cinema hall in a club.

0%

100%

Yes

No

Yes, 24%No, 66%

Market Research



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4. According to you, what sort of facilities should an entertainment club have?

5. What sort of movies would you prefer watching in a Dolby surround sound system

cinema hall, if a club provides one?

(a) English

Action

Comedy

Romance

(b) Hindi

Action

Comedy

Romance

(c) Bengali

Action

Comedy

Romance

According to our respondents we found that 64% want to see English movies mostly action and

comedy and 30% wants to see Hindi movies mostly Romance movies.



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6. What do you think is very important for a club to have? or What are the things that

a club should emphasize on, the most?

Environment / Security

Food

Pool tables

Music

Surround cinema hall

T.V. with cable connection

Efficient Management

Here we found that according to our respondents the most important thing is the Efficient

Management, the second important thing they ranked is Environment and Security and the third

thing they ranked is the Dolby Surround Cinema Hall in this aspect.

Pricing

As our club will be only used by our members, we will be charging for lifetime

membership of Tk. 5,000 for students and 10,000 taka for professionals.

Pool Game:

Pool table per game 10 taka.



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CD Section:

CD Audio Tk. 60

VCD Tk. 75

DVD Tk. 100

Cinema Hall:

Ticket per person (members) – 30 taka

Rent Cinema Hall 2000 taka for 4 hours and per extra hour 800 taka additional.

Browsing:

Members (per hour) Tk. 20

Non members (per hour) Tk. 40

Promotion

As our target customer is the young generation so the premier amount of marketing will

be done with in the Schools, Colleges and Universities. After the inauguration of our business

we will provide articles in the local dailies where we will try to highlight all the features of our

clubs and the items we will offer to our target customers. One sales person will be recruited who

will be responsible to inform the different institutions (Schools, colleges, Universities) about the

new offers through. He will receive and reply e-mails and calls from the prospective customers

about the new offers and also about our operations. He will maintain liaison with the different

organizations and their executives and local newspapers as our cinema hall would be rented

every now and then.



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Sales

Our lifetime membership fees is Tk.10,000 and 50% discount would be offered to the

students based on their ID cards or supporting documents or a recommendation letter from their

respective institutions. We will be giving our lifetime members a 20% discount in the fast food

section. A 50% discount will also be given to all the customers during special days like

Independence Day, New Year‟s Day etc. and festivals like Eids, Pujas, and Christmas.

Advertising

Advertisements in the local dailies will be given quite often. Our sale executive will be

providing information about our services to the different schools, colleges, and Universities

through attractive leaflets.

Posters & leaflets



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7. Location analysis

Location of the Business

This building will be located in one of the most prominent places of Chittagong i.e. the

GEC More (712, O.R. Nizam Road, Chittagong). We plan to own the two floors of our club

building i.e. the ground floor and the first floor for “COOL ZONE”, which will be costing us

Tk.30,000,000 (thirty lacs; 15,00,000 each floor). So we will be giving Tk.3,00,000 (three lacs)

as advance and the rest amount in monthly basis installment i.e. Tk.20,000 which will end within

12 years.

Demographic analysis of consumers

Demographic encompasses a population‟s numerical characteristics such as sex, age,

ethnicity, religion, education, occupation, income and other quantifiable factors. Here, we will

perform it as the occupation basis because most of the students who will enjoy their time in the

COOL ZONE, they are not the earning persons. This format will be the easiest way to show that

whom we will target & who will be our potential consume

Occupation Percentage Market Size (Million)

Student 12% .92

Young & Upcoming Professionals 10% .77

Businessmen 5% .38

Employees 3% 0.23

Foreigners .2% 0.015

Total 30.2% 2.7

Labor Skill Requirements



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We will be recruiting one sales executive, one manager and four waiters for the fast food

corner, two sales person for the CD store, one marker for taking care of the pool tables and one

casher who will be responsible for collecting money from CD store, restaurant, pool table, the

cinema hall and the cyber cafe. As we have a plan to install a Dolby surround sound system

cinema hall in our first floor a few months just after the inauguration of our club, we will need

two more persons who will be exclusively in charge of it. They will be accountable for the

projection of DVDs. One operator will be recruited to take care of the six computers of the cyber

café that we would initially install

To judge the strengths, weaknesses, opportunities and threats of “COOL ZONE”, the

SWOT analysis has been done below.

Strengths:

High quality product:

“COOL ZONE” would be providing its customers with the high quality products and

services. The CD store will be carrying all the latest original copies of CDs and VCDs. Food will

be prepared in its own kitchen by the professional chefs and supplied hygienically the entire

time. The movie hall will be specially installed with the Dolby surround system that would make

our customers feel worth coming.

Good price structure:

A very good price structure will be maintained in “COOL ZONE”. With a reasonable

profit margin things will be priced. Compared to its other competitors “COOL ZONE” will be

offering its products and services at a quite reasonable cost.



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Well-known associates:

As the directors of “COOL ZONE” are quite well known in Chittagong and carry a very

good reputation, they have plenty of good connections. These quality associates or customers can

be a source of gaining a substantial amount of profit if “COOL ZONE” ever faces tremendous

loss for any reason.

Trained workforce:

“COOL ZONE” will be recruiting a set of professional trained workforce who would be

maintaining the standard of the club the whole time through their mannerism, etiquette and

service to the customers, which would definitely make the customers leave a very good

impression behind. The workforce starting from the group of directors to the ground level

workers should know what they would be doing that would surely help them to create a very

good image. The staff would be monitored frequently in their respective jobs to ensure quality

service.

Weaknesses:

Raw materials restrictions:

“COOL ZONE” migt face some problem with the supply of raw materials‟ for our fast

food section. As we want to provide our customers with the best, we would be getting our raw

materials by our suppliers from Wellmart since they carry the best products in a hygienic manner

though it is going to be comparatively a bit expensive. And since we would be depending on

them so much, our supply might get hampered if for any reason their shortage occurs.



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Incompletion of work

Since our business is being done on the basis of deep research about the demands of the

young people of this town and as our motto is to ensure quality time to the customers, it would

be taking us a little more time to complete our entire settings of the first floor with the surround

system movie hall and the cyber cafe even after the inauguration of the club.

Opportunities:

High demand of such a club:

As Chittagong lacks entertainment spots, the young generation is in need of such a

recreation spot. Since this would be the first time multi entertainment club, we are looking

forward to a great bunch of young vibrant people enjoying to their hearts‟ extent.

Less competitors:

Another best thing about “COOL ZONE” is that it has the least number of competitors

who are not at all up to the mark. The plans and ideas that “COOL ZONE” is coming up with,

would be really easy for it to compete with its insignificant group of indirect competitors.

Threats:

Unwanted strikes or hartals:

It would be extremely against “COOL ZONE” if any uncalled for strikes or hartals occur.

The frequent occurrence of these would eventually lead us to bear a huge loss.

Government’s sudden regulations:

Government‟s sudden rules and regulations can be a great threat to “COOL ZONE” and

hinder its success.



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9. CONCLUSION

An analysis of this type not only assesses financial opportunities but also provides ideas

about how to complete better, given structural characteristics of the category. By analyzing every

aspect we can conclude that COOL ZONE will have a bright prospect in Chittagong.

10. Appendix

9. Reference

1.www.google.com

2.www.yahoo.com

3.www.ask.com

Management marketing, 10th edition, Philip kotler

Understanding Business. 6th

edition

http://www.google.com/

http://www.yahoo.com/

http://www.ask.com/

http://www.ask.com/

http://www.yahoo.com/

http://www.google.com/

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