Date post: | 06-Apr-2018 |
Category: |
Documents |
Upload: | 123456789123456789 |
View: | 216 times |
Download: | 0 times |
of 27
8/2/2019 The Business Plan-101
1/27
Report on
The Business Plan
Prepared For:
Business Plan Competition
Prepared By:
Angelic Mind
Batch: 101
(Bachelor of Business Administration)
Submission Date:
20thFebruary, 2012.
8/2/2019 The Business Plan-101
2/27
Business Plan Concept
Easy Recycling Process of Paper
(Re-Writeable Paper, Erasable Ink Pen, Easy Spray)
For Business Plan Competition
Primeasia University
8/2/2019 The Business Plan-101
3/27
Index
8/2/2019 The Business Plan-101
4/27
Executive Summary
A. Business Idea:Our business plan is a process to convert used paper to the new, re-
writeable paper. The process is known as easy recycling process.
B. Implementation Plan:In the initial stage, we will start with the establishment of
small/medium scale firm with support of Government in order to sustain in
case of initial losses. Well try to capture the market by different means of
marketing (Electronic, Print, Radio, TV etc). When our product captures
target proportion of market, well then
plan for the extension of the firm, either by expanding the plant size in the
same area or installation of new plant on new piece of land.
C. Financial Plan:Initial capital requirement for this processing will be around Tk.
50,00,000/-.
D. Social and Economic Benefits: This process can reduce water use in paper production by nearly
60% and energy consumption by 40%.
Air pollution can be decreased by 74% and water pollution. by35%.
Re-useable paper products are friendly to environment. Most of thepeople dont know about the concept of reusable paper. If
awareness is created amongst the individuals, this will lead to
increase in re-useable products demand.
Return on Investment:
We plan to a lot his percentage of return on investment to our investor.
However, if the net profit falls below the return value, we will then go for a
different percentage which will be based on not profit.
8/2/2019 The Business Plan-101
5/27
General Company Description:
Company overview
Papyrus paper mills is situated at Rupgang in Naraengang. It was formed by
A.K. Khan in December 2010. It provides deluxe paper, erasable ink pen and
spray. Papyrus Paper mill will used raw materials of sugar cane waste and
jute pulp. If people encourage using our paper surely it will reduce the
cutting of trees.
Mission and Vision:
Mission: Papyrus Paper Mills Ltd. believes in achieving intact rate of growth &
being one of the best paper manufacturer organizations. Our aim is to keepour own position compact as well as to create national economic growth &value for our shareholders. Our primary objective of trade & commerce is tosatisfy customers, investors, shareholders & employees; and to develop thesociety. Overall, our program is directed for these purposes. Manufacture &distribution of quality grade papers at reasonable prices is our main focus.Business is directed through maintaining strong moral quality which enables us to createassets for the organization
Vision: To create social and environmental awareness against deforestation
and wastage of paper.
Products Overview
Papyrus Paper Mills will provide the following products:
Re-writeable paper Erasable ink pan Easy spray.
Erasable Inks (Blue):
8/2/2019 The Business Plan-101
6/27
We provide a wide range of Erasable inks to our clients entire range of
erasable inks provided by our company is manufactured by using high grade
raw materials sourced from reliable vendors.
Paper Re-writeable process include the following main steps:
At first you have to write with erasable ink pan (blue) on the re-writeable paper.
Then apply erase spray over the particular paper.Within a few seconds ink of your paper will be vanished.
Now, your paper is ready to re-write.
Figure: Product Life Cycle
Benefits and features
There will be reduction of cost and wastage of paper. Rate of cutting of trees will be minimized. Our product is environment friendly and harmless.
8/2/2019 The Business Plan-101
7/27
Strengths and core competencies
Experienced R & D department. High quality product in comparison to competitors. Environment eco-friendly and healthy products. Owners commitment and dedication towards anti-pollution.
Challenges:
Papyrus Paper Mills will face a challenging situation in creating its brand
image and attracting customers towards its products due to presence of
already established competitors in the local market.
Such as:
Bashundhara Paper Mills Khulna Newsprint Mills TK Papers Mills Karnaphuli Paper Mills.
Industry Analysis
A Paper mill can be described as a manufacturing facility that is intended to
provide convenience product with the help of special chemicals such as Si02,
C, ethanol ... etc. It normally serves the educated people specially students
and teachers.
In Bangladesh we have get a very large mill at Chandraghona in Rangamati
district. There is another paper mill at Pakshi in North Bengal. The Khulna
Newsprint Paper mill is also a large one.
Why do people buy our products?
8/2/2019 The Business Plan-101
8/27
Paper is a thing which is used in our daily basis. it is used in schools,
colleges, offices, universities, courts etc. Huge amount of paper is needed to
fulfill the demand. Everyday huge amount of paper are used & wasted.
Students also buy paper for their writing purposes. If they buy our re-
writeable paper they will not only minimize their cost but also they will
contribute to save our environment. Because to make paper every year we
cut huge amount of trees. Papers is usually made from wood grasses,
bamboos and sugar cane wastes. For instance, the Karnaphully paper mill of
Chandroghona used bamboo and Khulna Newsprint Mill uses Gaowa as raw
materials.
8/2/2019 The Business Plan-101
9/27
Market Analysis:
Industry life cycle:
Paper mill industry in Bangladesh still at growing stage. According to central
bank statistics, Tk. 29.0 billion was spent to produce imported pulp, weste
paper, finished and specialized paper during the 2008-9 fiscal year.
However, the countrys demand for industrial paper is around 250,000 tones,
writing paper around 250,000 tones, newsprint around 40,000 tones and
specialized paper around 10,000 tones, according to industry insiders.
Most of the leading paper manufacturers are now expanding their plants
aggressively.
The growth in demand for industrial and specialized paper including offset, A-
4, and carbon-less is rising by more than 10 percent annually while the
demand for writing paper remained almost static in recent years.
Double A of Thailand is supplying 63% of the computer and photocopy paper
and century of India has captured 12% of the countrys specialized category
paper market.
Industry insiders said Bashundhara Group, which had lunched paper
production on large scale in 1996-97 with a capacity of 100 tons a day in the
private sector, is the countrys market leader.
Earlier, there were four static owned paper mills. Khulna Newsprint Mills was
established in 1996 in Khulna based on Gewa wood is now closed. Another
government paper mill was in Pakshi and its raw materials was cane
bagasses but it is also closed now.
Only KPM is still in production and its capacity is 100 tons a day.
8/2/2019 The Business Plan-101
10/27
SOWT Analysis
Strengths:
Management committed towards to a result oriented approach toattract and maintain customers in a highly competitive market.
Company will hire qualified, educated, and skilled chemist. We can patent our product. Science this is a non existing product in the market we dont have
direct competitors.
Weaknesses:
Since this is the first stage of our business initial cost are high. The marketing budget of our company is short to attract large
business clients.
Though it is a new category of paper in the market so customers donot know about our papers benefit. Thats why they are not
willingly to buy this products.
Opportunities:
In todays world people are more aware of the environment whichfits our product and its a positive side for us.
Though the expense is increasing in our daily life and if peoplerealize that our product will minimize their expense then they will
interested to buy our product.
We can easily capture the market because our product is unique.Threats:
Since we are lunching our product for the first time, we have to sellthe 3 products re-writeable paper, erasable ink and easy spray)
together at the same time.
Normal paper is a great invention in human civilization so wecannot ignore it if we want.
Threat of intense segment rivalry: Though there is a lot of aggressive
paper company in the market such as Bashundhara, TK, Karnaphuly etc but
there product is almost similar without any unique feature.
8/2/2019 The Business Plan-101
11/27
Our most opportunity is that we have no close competitors. Double A,
Kornofuli paper are our indirect competitors. Although, our product is
different from our competitors product. So, in this segment our competitive
advantage is very high.
Threat of new entry: We get extra opportunity because we have no
nearest competitors and there is no possibility to enter a new company as
like us. We must patent our product so that no company can capture our
product feature.
To enter the market properly, try to good performing and in our business our
investment is not so high, because our production cost is comparatively low.
So, exit barrier is low.
Suppliers bargaining power: Our Paper industry uses sugarcane wasteand jute pulp as raw materials so we think suppliers bargaining power is very
low since Bangladesh is a land of golden fiver.
Buyers bargaining power: Though similar product is available in the
market but our product feature is absolutely unique. For these reason buyers
bargaining power is also low.
Threat of substitute: Normal paper can play a substitute role as an
alternative to our paper. Computers and paperless office also a good
substitution of our product but that is too much expensive.
The most influential analytical model for assessing the nature of competition
in an industry is Michael Porter's Five Forces Model, which is described
below:
8/2/2019 The Business Plan-101
12/27
Porter explains that there are five forces that determine industryattractiveness and long-run industry profitability. These five "competitiveforces" are
- The threat of entry of new competitors (new entrants)- The threat of substitutes
- The bargaining power of buyers- The bargaining power of suppliers- The degree of rivalry between existing competitors
8/2/2019 The Business Plan-101
13/27
Figure: Porters Five Forces
There is no near substitute for our product, because we are firstintroducer, though we have no competitors, which are why we get extraadvantages at this stage.Threat of buyers bargaining power:We offer a package for the consumer. If they will buy our product, theyalmost get extra benefit because it will reduce their cost as well as theyexpense, we think they will not bargaining to buy our product.
Figure: Graphical Presentation of SWOT
8/2/2019 The Business Plan-101
14/27
Mass Supply / Mass sale
Papyrus Paper mill produces paper in its paper mill and it sell their products
in its own stationary named Papyrus stationeries. It also distributes its
products in other stationeries as well. By this process it can spread its
product all over the country.
Media Advertising:
Papyrus Paper Mill will use internet, newspaper, magazines, television and
radio as the medium of advertisement. In addition it will print 5000
brochures / leaflet for creating awareness in the market about their health
care services, it distributed in major social awareness seminars, book fairs,
education fairs and events where Papyrus Paper Mill will participate.
Product Execution Timeline:
Papyrus Paper Mill will follow this product execution model to enter in the
paper market
Task Execution Period
January February March April May June July
Choosing
location
Website
development
Hiring
training and
admin staff
Advertising
Lunching of
products
Location:
Papyrus Paper Mill will start its business at Rupgang area in Narayngang.
8/2/2019 The Business Plan-101
15/27
Personnel:
Papyrus paper mill will start with a total of 200 initial staffs members,
laborersand owners as well.
Cyclical Trends in Industry:
Paper Industry is pretty much affected by our various cultural trends. Such
as book fairs, board examinations.
Market Demand:
Ease of product: People are looking for paper that is re-useable and less
expensive.
Effectiveness of product: It can be re-used multiple times and reduce
wastage of paper.
Eco-friendly: this paper works indirectly for anti-pollution.
Market Facts:
In Bangladesh there are many educational institutes that order tonsof paper for educational purposes.
News paper is still a huge source of entertainment in Bangladesh.As a result huge amount of paper is used in our print media.
Students of all ages use books, note books, diaries etc around thecountry.
Paper industry is cutting town a lot of trees in order to make paperevery year.
Bangladesh is way behind in technology. As a result it is not yetpossible to make a paperless office.
Facts about papers and paper waste:
Approximately 324 of water is used to produce 1 kg of paperSource: Environment Canada
Average worldwide annual paper consumption is 48 kg per person.
8/2/2019 The Business Plan-101
16/27
8/2/2019 The Business Plan-101
17/27
Price
New-product Pricing Strategies:
Market Penetration Pricing:
Papyrus paper mills will face a challenging situation in highly competitive
market of Dhaka, Chittagong, Comilla, Rajshahi ,Khulna, Shylet and Barishal
all over the divisional city in Bangladesh. We target this divisional city for the
reason of highly reputed educational institution.Therefore, we will offer high
quality product at cost less than its benefits than existing market
competitors.
Rather them retting a high initial price to skim off small but profitable market
segments, we use market perpetration pricing. We set a low initial price in
order to penetrate the market quickly and deeply to attract a large number
of buyers quickly and win a large market share. The high sales volume
results in falling cost, allowing the companies to cut it prices even further and
it will be very helpful to receive a loan.
Figure: Pricing Strategies Matrix
Product Mix Pricing Strategies:
Product Bundle/Package Pricing:
8/2/2019 The Business Plan-101
18/27
We will make a bundle of products (25 pieces A4 paper + erasable ink pan +
easy spray) and offer the bundle at a reduced price of Tk. 95 only.
Financial Plan
Start-up Expenses
The start-up expenditures for Papyras Paper mill are summarized below:
Start-up ExpensesPapyrus
Sources of capital:
8/2/2019 The Business Plan-101
19/27
Investmentrequirement Tk.: 9,000,000
-_____________________Totalinvestment Tk: 9,000,000
_____________________
Start-up Expenses: Tk______________
________
Factory 2,000,000
Machines 15, 00,000Delivery Van 15, 00,000Capital Expenditures 5, 00,000Promotion 5, 00,000Labor cost 2,000,000
__________________
Total Start-upExpenses 8,000,000
_____________________
8/2/2019 The Business Plan-101
20/27
Balance sheet (Projected)Papyrus Paper Mill
Assets:Current Assets:
Cash in BankAccount ReceivablePrepaid Expense
90,000-15,000
12,770,0001,00,000
15,000
105,000 12,885,000
8/2/2019 The Business Plan-101
21/27
Fixed Assets:
FactoryMachinesDelivery van
Total fixed assets
Total Assets
Liabilities and Equity:
Current Liability:
Accounts payable
Long term Debt:
Bank Loans payableTotal Liabilities
2,000,00015,00,00015,00,000
-1,000,00015,00,000
5,000,000 25,00,000
5,105,000 15,385,000
-
-
6,00,000
9,000,000
0 96,00,000
Owners Equity:
Retained earnings beginning
Retained earnings current
Total owners equity
Total liabilities and equity
5,105,000
-
5,105,000
6,80,000
5,105,000 5,785,000
5,105,000 15,385,000
8/2/2019 The Business Plan-101
22/27
Revenue Forest (3-year)
Sales forecast (3-year)Papyrus paper mill
Explanations Year-1 Year-2 Year-3
Year-1:50,000 Packages * Tk. 95
All packages (40 pcs): 40,000*tk. 50Erasable Ink Pen: 30,000 * tk.15Easy spray ( 300 ml): 20,000 *tk. 80
Year-2:60,000 Packages * Tk. 95All packages (40 pcs): 50,000*
tk. 50Erasable Ink Pen: 37,500 * tk.15Easy spray ( 300 ml): 25,000 *tk. 80
Year-3:
78,000 Packages * Tk. 95All packages (40 pcs): 75,000*tk. 50Erasable Ink Pen:48,000 * tk.15Easy spray ( 300 ml): 32,000 *tk. 80
47,50,000
2,000,0004,50,000
16,00,000
57,00,00025,00,0005,62,500
2,000,000
74,10,00037,50,0007,20,000
26,00,000
88,00,000 107,62,500 14,480,000
8/2/2019 The Business Plan-101
23/27
Profit and loss projection (3 year)Papyrus paper mill
8/2/2019 The Business Plan-101
24/27
Explanations Year-1 Year-2 Year-3
Revenue:
Sales
Total Revenue
Operating cost:
FactoryMachinesDelivery vanCapital expendituresPromotionLabor cost
Total Operating Expenses
Profit before taxes
Taxes (15%)
Net profit
8,800,000 10,762,500 14,480,000
8,800,000
2,000,00015,00,00015,00,0005,00,0005,00,000
2,000,000
10,762,500
5,00,0006,00,000
25,00,000
14,480,000
5,00,0007,00,000
3,000,000
8,000,000
8,00,000
1,20,000
36,00,000
71,62,500
10,74,375
42,00,000
10,280,000
15,42,000
6,80,000 60,88,125 87,38,000
Pro forma Cash flowsPapyrus paper mill
8/2/2019 The Business Plan-101
25/27
Explanations Year-1 Year-2 Year-3
Cash Received:
Cash From Operations;
Cash Sales
Sub total cash from operations
Additional cash received:
New borrowing
Sub total cash Received
Expenditures:
PromotionLabor cost
Sub total spent on operations
Additional Cash Spent:
Taxes
Purchases of long term assets
Sub total cash spent
Net cash flow
8,800,000 10,762,500 10,762,500
8,800,000
9,000,000
10,762,500
-
10,762,500
-
17,800,000
5,00,0002,000,000
10,762,500
6,00,0002,500,000
14,480,000
7,00,0003,000,000
2,500,000
1,20,000
5,000,00025,00,000
31,00,000
10,74,375
-
37,00,000
15,42,000
-
51,20,000 41,74,375 52,42,000
12,680,000 19,358,125 28.596,125
8/2/2019 The Business Plan-101
26/27
References:
http://www.ehow.com/list_7401309_chemicals-make-ink_.html
http://www.ehow.com/how_12217240_make-erasable-ink.html
http://www.paperonweb.com/chemical.htm
http://www.paperonweb.com/wood.htm#top1
http://www.ehow.com/list_7401309_chemicals-make-ink_.htmlhttp://www.ehow.com/how_12217240_make-erasable-ink.htmlhttp://www.paperonweb.com/chemical.htmhttp://www.paperonweb.com/wood.htm#top1http://www.paperonweb.com/wood.htm#top1http://www.paperonweb.com/chemical.htmhttp://www.ehow.com/how_12217240_make-erasable-ink.htmlhttp://www.ehow.com/list_7401309_chemicals-make-ink_.html8/2/2019 The Business Plan-101
27/27
http://www.id2.ca/downloads/eco-design-paper-facts.pdf
http://en.wikipedia.org/wiki/Paper_pollution
http://wiki.answers.com/Q/What_chemicals_are_used_to_make_writing_pap
er
http://en.wikipedia.org/wiki/Methanol
http://mpra.ub.uni-muenchen.de/17206/1/MPRA_paper_17206.pdf
http://www.ehow.com/how-does_5019302_ink-eraser-work.html
http://www.indiamart.com/rayudulaboratories/
http://www.indiamart.com/rayudulaboratories/erasable-inks.html
http://www.worldscrap.com/modules/news/article.php?aid=13501
www.thefinancialexpress-bd.com
http://en.wikipedia.org/wiki/Invisible_ink#Properties_of_an_.22ideal.22_invi
sible_ink
http://chemistry.about.com/library/weekly/aa121602a.htm
http://tutor2u.net/business/strategy/porter_five_forces.htm
http://www.netmba.com/marketing/product/lifecycle/
http://marketingteacher.com/lesson-store/answer-pricing.html
Principles of Marketing (13e)
By Philip Kotler and Gary Armstrong
http://www.id2.ca/downloads/eco-design-paper-facts.pdfhttp://en.wikipedia.org/wiki/Paper_pollutionhttp://wiki.answers.com/Q/What_chemicals_are_used_to_make_writing_paperhttp://wiki.answers.com/Q/What_chemicals_are_used_to_make_writing_paperhttp://en.wikipedia.org/wiki/Methanolhttp://mpra.ub.uni-muenchen.de/17206/1/MPRA_paper_17206.pdfhttp://www.ehow.com/how-does_5019302_ink-eraser-work.htmlhttp://www.indiamart.com/rayudulaboratories/http://www.indiamart.com/rayudulaboratories/erasable-inks.htmlhttp://www.worldscrap.com/modules/news/article.php?aid=13501http://www.thefinancialexpress-bd.com/http://en.wikipedia.org/wiki/Invisible_ink#Properties_of_an_.22ideal.22_invisible_inkhttp://en.wikipedia.org/wiki/Invisible_ink#Properties_of_an_.22ideal.22_invisible_inkhttp://chemistry.about.com/library/weekly/aa121602a.htmhttp://tutor2u.net/business/strategy/porter_five_forces.htmhttp://tutor2u.net/business/strategy/porter_five_forces.htmhttp://www.netmba.com/marketing/product/lifecycle/http://www.netmba.com/marketing/product/lifecycle/http://marketingteacher.com/lesson-store/answer-pricing.htmlhttp://marketingteacher.com/lesson-store/answer-pricing.htmlhttp://marketingteacher.com/lesson-store/answer-pricing.htmlhttp://www.netmba.com/marketing/product/lifecycle/http://tutor2u.net/business/strategy/porter_five_forces.htmhttp://chemistry.about.com/library/weekly/aa121602a.htmhttp://en.wikipedia.org/wiki/Invisible_ink#Properties_of_an_.22ideal.22_invisible_inkhttp://en.wikipedia.org/wiki/Invisible_ink#Properties_of_an_.22ideal.22_invisible_inkhttp://www.thefinancialexpress-bd.com/http://www.worldscrap.com/modules/news/article.php?aid=13501http://www.indiamart.com/rayudulaboratories/erasable-inks.htmlhttp://www.indiamart.com/rayudulaboratories/http://www.ehow.com/how-does_5019302_ink-eraser-work.htmlhttp://mpra.ub.uni-muenchen.de/17206/1/MPRA_paper_17206.pdfhttp://en.wikipedia.org/wiki/Methanolhttp://wiki.answers.com/Q/What_chemicals_are_used_to_make_writing_paperhttp://wiki.answers.com/Q/What_chemicals_are_used_to_make_writing_paperhttp://en.wikipedia.org/wiki/Paper_pollutionhttp://www.id2.ca/downloads/eco-design-paper-facts.pdf