Final Business Plan Edited by Istiaque

7/31/2019 Final Business Plan Edited by Istiaque

1/26

I.EXECUTIVE SUMMARY

Processed fish have been considered a widespread industry since a very long time. Frozen foods

are the second largest export sector of the economy. The massive natural resources available inBangladesh make this sector particularly promising for us to make invest. Export oriented fishprocessing plants produce Fresh Water shell On (FWSO), Sea Water shell On (SWSO), shrimpproducts under the most hygienic and sanitary condition under the supervision, control andguidance of foreign trained handling & processing experts. At all levels, USFDA registrations anddirectives of the European Communities concerning the production and exportation of frozen

foods are strictly followed.

Loose packaged fish available in local market has led to the dissatisfaction among the customersbecause of its unavailability in proper packaging. This dissatisfaction provides a window of greatopportunity for hygienically processed and packed fish which satisfies the need of the customers.

FIAM Fresh Fish Group (Ltd.) will make use of modern technology and will offer hygienicallypacked fish. Hygienic fish with a good quality will be the USP of the company. This property willmake the company vastly superior to the currently available loose packaged fish market.

According to the market survey consumers wont mind paying a premium if they are providedhygienically processed and packaged fish. FIAM Fresh Fish Group (Ltd.) will be marketing the

product by giving advertisements in the company website, other web based business platform

like cellbazzar, clickbd, newspapers and commercial ads for the television, radios.

The entrepreneurial team consists of Director Strategy, Production Manager, logistics Manager,Marketing Manager and Quality control Manager. The team members know each other for severalyears and are highly compatible.

A pilot plant would be set up in Gazipur and will be functioning from June 2012.Manufacturingwill include in-house function like filleting, trimming and packaging of fishes.

The project will require funding from Venture Capitalists as well as bank and personal finances ofall directors.


2/26

The business will sell raw and processed fresh fish to the citizen of Dhaka. The company will buy,and then cut, wash, and freeze fish for customers and then sell them through departmental

stores and its own selling staff. Our customers can also place order through our website andphone also. The firm will be located at Gazipur where we do small scale of production in primarystage. Majority of the raw fish are supplied by the third party by ensuring our quality controlsteps. By selling processed fish, the firm is expected to generate moderate profit.

More than fifteen million people live in Dhaka, capital city. More than 200,000 Kg. fishes are

needed daily to meet their demand. But most of the time, they do not get fresh fishes because of

its scarcity and costliness in Dhaka. If we can buy fresh fishes at low prices at distant places and

can sell them to the citizens of Dhaka after processing the fishes that will be a lucrative business

which is the idea behind launching the business of a fish processing firm. Before deciding to

launch this business, we took the help of a micro screening. We had a number of alternativessuch as meat firm, restaurant business, fast food business, horticulture etc. the business of fish

processing was selected because it earned highest score.

The product of the firm will be fresh fishes processed and packed fresh fishes. Fresh fishes will

be available in packets of 1/2 Kg, 1 Kg and 2 Kg. the most attractive feature of the product is

that the fishes will be indigenous and fresh. The product will have a manufacturing date as well

as an expiry date. The good thing is that the difference between these two dates will be only two

days. That is, the fishes will not be left in the freezes for infinite time period. The retailers must

sell them within two days. This will make sure that the customers will get fresh fishes.

Website:

There will be a website for FIAM Fresh Fish Group (Ltd.) named , through which willshow the entire market of our product at a glance on computer screen. Like This:

Fish Type Size Price

RuiKatla

TelapiaFarmed Koi
http://www.cellbazaar.com/web/items/category/agri-wholesale/fish/Rui/page-1/sort/0.aspxhttp://www.cellbazaar.com/web/items/category/agri-wholesale/fish/Katla/page-1/sort/0.aspxhttp://www.cellbazaar.com/web/items/category/agri-wholesale/fish/Telapia/page-1/sort/0.aspxhttp://www.cellbazaar.com/web/items/category/agri-wholesale/fish/FarmedKoi/page-1/sort/0.aspxhttp://www.cellbazaar.com/web/items/category/agri-wholesale/fish/Rui/page-1/sort/0.aspxhttp://www.cellbazaar.com/web/items/category/agri-wholesale/fish/Katla/page-1/sort/0.aspxhttp://www.cellbazaar.com/web/items/category/agri-wholesale/fish/Telapia/page-1/sort/0.aspxhttp://www.cellbazaar.com/web/items/category/agri-wholesale/fish/FarmedKoi/page-1/sort/0.aspx


3/26

Farmed Pangas

HilshaGrasscarpSilvercarpMirrorcarpKarfu

CatFishSharputiShrimpOther

Anyone with internet access can browse our website and give order for our product. Itemsposted by WEB, WAP or SMS are instantly visible to users of any platform. Web platform willmake our business available to an international audience. By using the website we will be able toreach our customer very easily. We can present our product with picture in the website.

Our customer can order for our products through phone calls.

Now a day, more food items are contaminated and our city lives are getting busy day by day. So,

lots of entrepreneurs are intending to manufacture contamination-free products and products

those will be convenient for the busy city dwellers.

We five friends from IBA-JU, when doing entrepreneurship course first decide to establish abusiness as our course requirement. We are pretty much confident that after completing ourcourse we can work our business plan to make it a successful venture.
http://www.cellbazaar.com/web/items/category/agri-wholesale/fish/FarmedPangas/page-1/sort/0.aspxhttp://www.cellbazaar.com/web/items/category/agri-wholesale/fish/Hilsha/page-1/sort/0.aspxhttp://www.cellbazaar.com/web/items/category/agri-wholesale/fish/Grasscarp/page-1/sort/0.aspxhttp://www.cellbazaar.com/web/items/category/agri-wholesale/fish/Silvercarp/page-1/sort/0.aspxhttp://www.cellbazaar.com/web/items/category/agri-wholesale/fish/Mirrorcarp/page-1/sort/0.aspxhttp://www.cellbazaar.com/web/items/category/agri-wholesale/fish/Karfu/page-1/sort/0.aspxhttp://www.cellbazaar.com/web/items/category/agri-wholesale/fish/CatFish/page-1/sort/0.aspxhttp://www.cellbazaar.com/web/items/category/agri-wholesale/fish/Sharputi/page-1/sort/0.aspxhttp://www.cellbazaar.com/web/items/category/agri-wholesale/fish/Other/page-1/sort/0.aspxhttp://www.cellbazaar.com/web/items/category/agri-wholesale/fish/FarmedPangas/page-1/sort/0.aspxhttp://www.cellbazaar.com/web/items/category/agri-wholesale/fish/Hilsha/page-1/sort/0.aspxhttp://www.cellbazaar.com/web/items/category/agri-wholesale/fish/Grasscarp/page-1/sort/0.aspxhttp://www.cellbazaar.com/web/items/category/agri-wholesale/fish/Silvercarp/page-1/sort/0.aspxhttp://www.cellbazaar.com/web/items/category/agri-wholesale/fish/Mirrorcarp/page-1/sort/0.aspxhttp://www.cellbazaar.com/web/items/category/agri-wholesale/fish/Karfu/page-1/sort/0.aspxhttp://www.cellbazaar.com/web/items/category/agri-wholesale/fish/CatFish/page-1/sort/0.aspxhttp://www.cellbazaar.com/web/items/category/agri-wholesale/fish/Sharputi/page-1/sort/0.aspxhttp://www.cellbazaar.com/web/items/category/agri-wholesale/fish/Other/page-1/sort/0.aspx


4/26

The goal of this business will be to sell fresh fishes to the citizens of Dhaka as well as to make

some profit. We always provide the best possible value to our customers who care about quality

fish, and we want every Taka spent with us to be well spent. We seek fair and responsible profit,enough to keep the company financially healthy for the long term and to fairly compensate

owners and investors for their money and risk. Through this business, we want to contribute

somehow in the economy of the country.

The idea seems to be new; we think the industry will grow at a moderate rate.

There are some reasons for which we think we can succeed in this business. They are-

Now a day, housewives are busier with other affairs than cooking. We think that

they will prefer processed fishes to eat.

We will have uncompromising commitment to the quality of the end product:

quality fishes, quality washing, quality packing, and quality of end result.

We will make fresh fishes available at the doorsteps of the citizens. They will not

have to go to the market to buy fishes; rather they will be able to order it from

the website or phone calls. They can also use their credit card. So we hope they

will like our product.

We are blending the concept of e- commerce and traditional business.

Most of the fishes available in Dhaka city are not fresh and hygienic. We will

supply hygienic fishes and hope that the citizens of Dhaka will prefer our product

than that of other sources.

MARKETING SEGMENT


5/26

Different Types of Consum

35%

20%

45%

H ouseholds

H otels

Service H olders & Students

Our market survey showed that there are mainly 3 types of consumers in Dhaka;

households, hotels and restaurants, students and service holders residing in messes.

The pie chart shows their proportion:

Our target market is quite big. Almost 15 million people live in Dhaka. A research

revealed that on an average 375000(avg 25 gm per head) kg fish is needed daily to

meet the demand of the citizen living in Dhaka.


6/26

We will sell fresh fishes to the households, service holders through our distributors. Our

sales team will supply fishes to hotels, restaurants and super shops also.

With the convenience of buying fish at such an easy way people will prefer our service.

Competition

We do not have any direct competitors. The numerous competitors we have are indirect

ones. There are wholesalers of fish, retailers, and hawkers- all sale fishes. Now a day,

some super shops like Nandan, Agora, Mantra, and PQS sell fishes. All these are our

competitors but all of them sale raw fish. The competitive advantages we will have are

listed below:

We will sale processed fish that will take less time and effort to be cooked. The

housewives will prefer processed fish to raw ones.

We will offer pure fresh fish.

Our product will be available at the doorsteps of the consumers. So they will

need less cost and effort to buy them. They will also need less time, cost and

effort to buy from us.

Our product will be frozen. So, we make sure that the consumer will not

have to eat rotten fish.

Though the idea of selling processed fish and raw fish through internet and phone calls,,

we think the industry will grow at a moderate rate.


7/26

We will have two types of distribution policy. Firstly, we will supply the fishes to ourinstitutional buyers and secondly to household consumers who can process orders

through phone call or web based platform. Initially we will launch web based platform

and phone call order placement system at a very limited scale.

Our processed fishes will be carried to Dhaka by a big frozen truck. Then the fishes will

be delivered to the distributors and customers by small delivery pickups. We will buy 5

such pickups. We will choose one hundred big and medium departmental stores as our

distributors. Each distributor will get a refrigerator from the firm in which they will keep

the fish. They will not pay for the refrigerator but each distributor must pay a refundable

security deposit of Tk. 25,000 (twenty five thousand). The delivery vans will deliver the

fish within 9 a.m.

We will maintain our pricing position as a premier provider. We offer the best product

available, for our valued consumer. We intend to maintain our separation from the price

competition at the lower end of the business. Our plan calls for no significant changes in

pricing.

Price list for the next 3 years is given below:

Chicken 120 130 135

Mutton 270 280 290

Beef 180 190 200


8/26

Fresh Fish is going to be a relatively new product for our target customers. We will

have a promotion policy that will use newspapers as well as fm radio, leaflet, internet

adds. We also send our sales team into different hotels and resorts for promotional

purpose.

Firstly we will advertise in the newspaper for our products. The features we will highlight

are listed below:

The citizens of Dhaka eat rotten fishes. If they choose Fresh Fishes, they will

be able to eat fresh and hygienic fishes.

The consumers will be able to eat pure indigenous fish if they choose Fresh

Fishes.

Fresh Fishes will be ready for cooking. So it will save valuable time of the

housewives which they can utilize in their own way.

Fresh Fish will be comparatively cheap than the other ones available in the

market place.

Our distributors will also advertise for our product. They suggest their valued customers

to choose Fresh Fish instead of other fishes available in the market place.Anticipated cost for advertisement in the first year is Tk.4, 400,000 (4.4 million).

Suppliers and transportation factorsMajority of the raw fish collected from inside and outside Gazipur locally situatedfish farms. We contract three fish farms which will provide us raw fish according toour quality standard and requirements. Suppliers will provide the fish to ourfactory at their own cost.

PRODUCTION PLAN


9/26

The company will process fresh fishes. So the manufacturing process is much simple.

The suppliers will supply fresh fishes to the farm. Then the fishes will be cut, washed,

packed and kept in the cold storage for freezing. The frozen fishes will then be carried

to Dhaka in a frozen lorry and the delivery vans will supply them to the institutional

buyers. The steps of the manufacturing process are:

Suppliers supply the raw fishes to the farm. In fact there will be numerous suppliers.

They will deliver these to the farm. Our buying agent will maintain affairs with them.

The fishes will be cut by the workers. Workers will wear hygienic uniform and the

cutting process will be completed hygienically and manually.

Then the workers will wash the fishes. These workers will also wear uniforms .

The fishes are weighed and packed. The fishes will be weighed using automatic scales

and packed using machines.

The fishes are kept in the cold storage. There will be a cold storage which will be used

to freeze the fishes.

The fishes are carried to Dhaka by a frozen truck. A big frozen truck will be bought in

order to carry the fishes to Dhaka.

All the products will be manufactured in the farm. There will be no subcontract.


10/26

The plant will be a one storied building which will contain a cold storage as well as office

rooms. The processing plant will have adequate space for processing fish. There will be

mainly three units in the plant: cutting, washing, and packaging. All units will be

equipped according to the necessity.

The production process is more a manual one than an automated one. So the

equipment needed will not be costly ones. We will need some pots, knives, scales,

packaging machines etc. The most important machinery will be the machinery used to

freeze the fish. Cold storage will be built and anticipated cost for building a 900 square

feet cold storage is Tk. 1,000,000 (one million). We will hire two diploma engineers for

the maintenance of the cold storage.

Fresh Fish Processing Firm will be established as a partnership firm. All of them have

equal shares in the venture.

ORGANIZATIONAL PLAN


11/26

There will five partners in the business. They are:

Md. Istiaque Ahmed Mon Mon Akter

Mohammad Arafat Hossain

Fatema Tuz - Zohara

Mohammad Mufakkharul Islam

General manager. He will act as In-charge of the Dhaka office. He will supervise

the entire production process.

Marketing manager. She will act as In-charge of the Gazipur office. She will look after

the selling and distribution process.

Finance manager. He will be responsible for determining sources of funds and the

proper disbursement of these collected.

Production manager. He will be responsible for the amount of raw fishes required for

desired amount production and cost of production.

Quality control manager, diploma engineers. They will be responsible for the controlling

quality of the product at the predetermined level.

Accounting manager. She will be responsible for recording, classifying, summarizing

financial transactions.


12/26

GeneralManager

BuyingManager

Production

Manager

QualityControl

Manager

ProductionSupervisorBuying agent Quality Control

Assistant

ProductionWorker

Accounting

ManagerFinance

Manager

The firm will maintain a . In the factory, there will

be general manager and all three managers will report to him. The managers will be

liable for the activities of their subordinates. The following figure illustrates the

management hierarchy. In Dhaka office, the entrepreneur will direct all his subordinates.

A joint account will be open in the name of the firm. The checks will need to be signed

by General Managers and Head of Accounts.

ASSESSMENT OF RISK


13/26

The proposed fish processing and selling business is almost free from any direct

competition. But in a few years there will be a number of competitors as this business is

lucrative and there are a few barriers to enter this business. The firm will

. So, carrying cost is high for the firm. If any similar firm

is established somewhere near Dhaka, they will have very low carrying cost. So, they

can offer a lower price. The firm will then face vigorous competition. Price of raw

materials (fresh fishes) may increase in future. Then the firm will face struggle to sell

processed fishes at prevailing prices.

When the competition will rise, the firm will adapt some of the following policies:

The firm may start poultry business. The products of the poultry firm will be flesh

and egg. Besides, the faces of chicken will be used as food of the fishes. This

business will act as a backward linkage of the existing business.

The firm may start a meat business. So, it will act as a backward linkage of the

fish processing business

The firm may start a dairy firm. The main product of the dairy firm will be milk.

But cow dung will be another important bi-product which will be used in

production of fish.

Social CostSOCIAL COST & BENEFIT ANALYSIS


14/26

Initial investment needed is Taka 60,000,000. This money could be used in otherprojects. This opportunity cost is a social cost.

If we sell processed meats to the households, some hawkers who used to sell

meats to the households, will loose their job.

The citizens of Dhaka eat rotten and poisonous chemical-mixed fished which can

cause various diseases for them. Our &&&& will save them from this kind ofharm.

A good number of village people will get employment in the firm. This is surely a

social benefit.

SWOT ANALYSIS


15/26


16/26

FINANCIAL PLAN

A projected financial statement is presented below and necessary workings are shown

later.

FINANCIAL PLAN


17/26

1

3

4

200,750,000

173,565,000

27,185,000

17,800,000

9,385,000

55,000

9,330,000

1,200,000

0

220,825,000

190,921,500

29,903,500

19,600,000

10,303,500

40,500

10,263,000

1,131,619

0

242,907,500

210,013,650

32,893,850

21,600,000

11,293,850

14,550

11,289,300

1,055,032

0


18/26

2,050,000

1,000,0009,000,0001,300,000450,000

250,000

1,650,0007,500,0003,800,158

2,025,000

1,000,0008,000,0001,015,000405,000

300,000

1,815,0008,250,0005,203,920

1,802,500

1,000,0007,200,0001,093,000364,500

112,000

1,996,5009,075,0005,411,793

9,400,058

30,100

1,440,000

1,600,0001,600,0001,600,0001,600,0001,600,000

8,130,000

8,751,035

41,035

2,090,604

1,600,0001,600,0001,600,0001,600,0001,600,000

9,131,381

8,056,100

21,025

1,742,400

1,600,0001,600,0001,600,0001,600,0001,600,000

10,234,268


19/26

199,100,000

10,000,000

8,000,000

171,725,0003,283,0004,400,000

240,0001,800,000

200,00046,000

3,000,000

3,836,000

15,500,000

1,769,842205,799,84211,300,158

-

220,660,000

190,270,8966,152,4324,840,000

264,0001,980,000

214,00056,600

5,841,132

7,117,336

0

1,769,842

218,506,2382,153,762

11,300,158

242,726,000

2103618546,767,6765,324,000

290,4002,178,000

240,40057,260

6,100,000

11072095

0

1,769,842

244,161,5271,032,873

13,453,920


20/26

After calculating the ratios of the firm, we found that gross profit ratios and net profit

ratios are not satisfactory because the cost of goods sold and the operating cost is very

high in the first three years. But the other ratios are satisfactory because this firm is

very profitable firm to invest in long term. We assume as a new type of business the

demand for this kind of product will increase day by day. As a result the profit will be

relatively high than previous year.

Here, we assumed that there will be no inventory available in hand. Therefore the quick

ratio will be same as the current ratio.


21/26

5,000 5,500 6,050200,750,000 220,825,000 242,907,500

140 150 160

91.64 95.80 96.38

8,130,000 9,131,381 10,234,268

33,507,000 28486425 30,071,948

16.69% 12.90% 12.38%1,316,449 1,284,753 1,379,373

144,809,390 141,322,830 151,731,03055,940,610 79,502,170 91,176,470

4.12 3.11 2.93


22/26

Opening stock of finished goodsAdd : cost of goods manufacturecost of goods available for saleLess : closing stockCost of goods sold

0173,565,000173,565,000

0173,565,000

WORKINGS


23/26

Selling, administrative and distribution expensesSalariesHealth and other welfare expenses

Bank chargesAdvertisementFestival bonusFuelServer expenseWeb hostingRepairs and maintenanceConvenience expensesStationaryTraveling expense

Leasing expenseTelephone expensesRentBed debtLegal fees

Auditors feesInsuranceLand revenueDepreciation

Vehicle 1,000,000Furniture 50,000

Partners feesSalary 2,400,000Bonus 600,000

2,804,000200,000

50,0004,400,000

300,0002,100,000

200,00090,00076,000

800,000120,000100,000

200,000169,0001,800,000

40,000100,000100,000240,000

6,000

1,050,000

3,000,000

Total 17,855,000


24/26

The firm will take a loan of Tk 10 million which will be amortized over the next 10 years.

The interest rate will be 12%. The amortization schedule is shown below:

1,769,842 1,200,000 569,842 9,430,1581,769,842 1,131,619 638,223 8,791,9351,769,842 1,055,032 714,810 8,077,1251,769,842 969,255 800,587 7,276,538

1,769,842 873,185 896,657 6,379,8811,769,842 765,586 1,004,256 5,375,6251,769,842 645,075 1,124,767 4,250,8581,769,842 510,103 1,259,739 2,991,1191,769,842 358,934 1,410,908 15,802,11

1,769,842 189,625 1,580,211 -

CONCLUSION


25/26

FIAM Fresh Fish Group (Ltd.) is really an absolute and real thought of aninnovative business in this modern competitive business world. And we prepareour business plan in the way that it will sure be a successful businessentrepreneurship if anybody takes an initiative to formulate the business plan. Andit must be seeing the light of success if other things being constant though wehave considered the price effect of the meats in the future market by consideringthe flow of rising the price in the market since last few years but a question alwaysremain in the back of this event and it is the limitation of our study with thismatter.

At last we hope that this business will sure be able to achieve the faith of generalpeople and do its projected business well. We want to establish this firm as like asa new brand of our country where people think before they eat in hotel or inhouse. In future they will be in relaxation thinking that they are eating the rightmeat from FIAM Fresh Fish Group (Ltd.) .


26/26

Date post:	05-Apr-2018
Category:	Documents
Upload:	istiaque-ahmed
View:	218 times
Download:	0 times

Final Business Plan Edited by Istiaque

Documents