1.

Executive Summary

2. Introduction of the Business:

We want to start a new business that named Friends Fashion House. Here we will provide the
different types of cloths for the man & woman. In this way our clothes bear the extra quality like
as block, batik & embroidery.

Business Plan: we are planning to start a new boutique house in the area of Sree Mongol,
Moulovibazar & Hobiganj. We are just planning to have womens cloth like Salwar-kamiz,
fotuya. We will purchase the raw material from Dhaka and sell the cloths to 3 places of Sylhet
Division. Our product features will be,

Making with Pure cotton clothes.

Have different type of clothes.
Fashionable design.
Sustainable colors.
Choose able color.
Making with new technology.
Ensure 100% finishing product.
Introducing new sewing technology.
Focuses with unique fashionable dress.
With reasonable price.

Company Profile: Our "Friends Fashion House" will soon be located in sylhet, As soon
as possible we will started our business, we will provide clothes for women in the any level of
age. During 2011 we will start 3 showrooms in differently commercially important location in
Sree Mongol, Moulovibazar & Hobiganj. The company main products are for woman salwar -
kamize, fotua, oarna. For starting the business we have the following mission & vision for our
business.
 Objective of the Business Plan:

There is some objective of our business. The main objectives of our business are:
Our company is a profit oriented company.
No perfect competition, so this will be like a monopoly market & we can earn maximum
profit;
To expand production annually;
To reach at the Break Even Point at 2.50 years
By making maximum profit we will try to launch more showrooms in different location
Maintaining corporate & business ethics
The mission of the company is to provide a new look for consumers, based on style and
quality.
Mission of the Business Plan:

To be most caring, customer friendly & profit oriented business.

To provide clothes at a competitive price through the Bangla.
Above all, to add effective contribution to the national economy.
Vision of the Business Plan:
To be the most wanted & best qualify boutique provider in Bangladesh.

Friends Fashion Houses Virtual Production Plan:

We will not go for any production. Because our production process is virtual. By cost-benefit
analysis we want to go through virtual production.

Our estimated virtual production Daily

cost set rill quantity Yards in a per
Rill yard
price
per rill 1,050.00 5.00 1.00 30.00 35.00
per set cost 210.00 1.00
daily needed 315,000.00 1,500.00 300.00
monthly cost 9,450,000.00 45,000.00 9,000.00 45,000.00
Yearly cost 113,400,000.00 540,000.00 108,000.00
We had assumed
that,
 Total number of production
production (in workers by one
set) worker (in
set)
Daily Production 1500 30 50
1500 set
monthly production 45000 30 1500

3.Feasibility Planning of our Business Plan on Friends Fashion House is given below:

Economic Planning:

The economy has grown 5-6% per year since 1996 despite political instability, poor infrastructure,
corruption, insufficient power supplies, and slow implementation of economic reforms.
Bangladesh remains a poor, overpopulated, and inefficiently-governed nation. Although more than
half of GDP is generated through the service sector, about 45% of Bangladeshis are employed in
the agriculture sector, with rice as the single-most-important product. Bangladesh's growth was
resilient during the 2008-09 global financial crisis and recession. Garment exports, totaling $12.3
billion in FY09 and remittances from overseas Bangladeshis totaling $9.7 billion in FY09
accounted for almost 25% of GDP.

Economic Overview of Bangladesh

Serial Economic Heading Condition of Bangladesh

no
01 GDP (purchasing power parity): $229.5 billion (2008 est.)

$216.5 billion (2007 est.)

note: data are in 2009 US dollars

02 GDP (official exchange rate): $93.2 billion (2009 est.)
03 GDP - real growth rate: 5.6% (2009 est.); 6% (2008 est.); 6.2% (2007
est.)

country comparison to the world: 18

04 GDP - per capita (PPP): $1,600 (2009 est.); $1,500 (2008 est.); $1,400
(2007 est.)

country comparison to the world: 193

note: data are in 2009 US dollars

05 GDP - composition by sector agriculture: 18.6%

industry: 28.6%

Services: 52.8% (2009 est.)

06 Labor force 72.35 million

country comparison to the world: 8

note: extensive export of labor to Saudi

Arabia, Kuwait, UAE, Oman, Qatar, and
Malaysia; workers' remittances estimated at
$4.8 billion in 2005-06. (2009 est.)
07 Labor force - by occupation: agriculture: 45%; industry: 30%; services:
25% (2008)

08 Unemployment rate: 2.5% (2009 est.); 2.5% (2008 est.)

country comparison to the world: 19

09 Population below poverty line 36.3% (2008 est.)
10 Investment (gross fixed) 24.2% of GDP (2009 est.)

country comparison to the world: 52

11 Budget: revenues: $11.4 billion
 Expenditures: $16.3 billion (2010 est.)
12 Inflation rate (consumer prices) 5.4% (2009 est.); 8.9% (2008 est.)

country comparison to the world: 148

13 Central bank discount rate: 5% (15 December 2009)

country comparison to the world: 106

5% (31 December 2008)

14 Industries: cotton textiles, jute, garments, tea processing,
paper newsprint, cement, chemical fertilizer,
light engineering, sugar
15 Industrial production growth rate: 5.9% (2009 est.)

country comparison to the world: 16

16 Exports: $15.91 billion (2009 est.)

country comparison to the world: 70

$15.44 billion (2008 est.)

17 Exports - commodities garments, frozen fish and seafood, jute and
jute goods, leather

18 Exports partners US 20.24%, Germany 12.75%, UK 8.64%,

France 6.48%, Netherlands 5.9% (2009)

19 Imports: $20.22 billion (2009 est.)

country comparison to the world: 68

$21.51 billion (2008 est.)

20 Imports - commodities: machinery and equipment, chemicals, iron
and steel, textiles, foodstuffs, petroleum
products, cement
 21 Imports - partners: China 16.16%, India 12.61%, Singapore
7.55%, Japan 4.63%, Malaysia 4.46% (2009)

22 Reserves of foreign exchange and $10.32 billion (31 December 2009 est.)
gold:
country comparison to the world: 68

$5.789 billion (31 December 2008 est.)

23 Debt external $23.22 billion (31 December 2009 est.)

country comparison to the world: 63

$22.83 billion (31 December 2008 est.)

24 Stock of direct foreign investment - at $5.617 billion (31 December 2009 est.)
home
country comparison to the world: 83

$4.817 billion (31 December 2008 est.)

25 Stock of direct foreign investment - $82 million (31 December 2009 est.)
abroad:
country comparison to the world: 79

$81 million (31 December 2008 est.)

26 Exchange rates: taka (BDT) per US dollar - 69.047 (2009),
68.554 (2008), 69.893 (2007), 69.031 (2006),
64.328 (2005)

Economy of Bangladesh

The economy of Bangladesh is constituted by that of a developing country. Its per capita income
in 2008 was est. US$1,500 (adjusted by purchasing power parity) significantly lower than India,
Pakistan, both which are also lower than the world average of $10,497. According to the gradation
by the International Monetary Fund, Bangladesh ranked as the 48th largest economy in the world
in 2008, with a gross domestic product of US$224.889 billion. The economy has grown at the rate
of 6-7% p.a. over the past few years. More than half of the GDP belongs to the service sector;
nearly half of Bangladeshis are employed in the agriculture sector, with RMG, fish, vegetables,
leather and leather goods, ceramics, rice as other important produce.

Remittances from Bangladeshis working overseas mainly in the Middle East is the major source of
foreign exchange earnings; exports of garments and textiles are the other main sources of foreign
exchange earning. GDP's rapid growth due to sound financial control and regulations has also
contributed to its growth. However, foreign direct investment is yet to rise significantly.
Bangladesh has made major strides in its human growth index.

The land is devoted mainly to rice and jute cultivation of rice, fruits and produce, although wheat
production has increased in recent years; the country is largely self-sufficient in rice production.
Bangladesh's growth of its agro industries is due to its rich deltaic fertile land that depend on its
six seasons and multiple harvests.

Improving at a very fast rate, infrastructure to support transportation, communications, power

supply and water distribution are rapidly developing. Bangladesh is limited in its reserves of oil,
but recently there was huge development in coal mining. The service sector has expanded rapidly
during last two decades, the country's industrial base remains positive.[3] The country's main
endowments include its vast human resource base, rich agricultural land, relatively abundant
water, and substantial reserves of natural gas, with the blessing of possessing the two worlds only
natural sea ports in Mongla and Chittagong, in addition to being the only central port linking two
large burgeoning economic hub groups SAARC and ASEAN.

Bangladesh Garments Industry

The shift from a rural, agrarian economy to an urban, industrial economy is integral to the process
of economic development (Kaldor, 1966, 1967). Although policymakers in the least developed
countries (LDCs) have, at various times, attempted to make agriculture the primary engine of
economic growth and employment generation, this approach has not worked, not least because of
the contributions of the Green Revolution, which has had the dual effect of increasing agricultural
productivity in the LDCs and displacing the rural labour force at the same time. Led by the
example of the East Asian economies, most LDCs now accept the need for greater
industrialization as the fastest path to economic growth. In particular, countries such as Japan,
Taiwan and South Korea have demonstrated that an export-oriented industrial strategy can not
only raise per capita income and living standards in a relatively short time; it can also play a vital
role in modernizing the economy and integrating it with the global economic system.
Bangladesh, one of the archetypal LDCs, has also been following the same route for the last 25
years. Once derided as a basket-case by Henry Kissinger (The Economist, 1996), the country
stumbled across an economic opportunity in the late 1970s. New rules had come to govern the
international trade in textiles and apparel, allowing low-cost suppliers to gain a foothold in
American and European markets. Assisted by foreign partners, and largely unaided by the
government, entrepreneurs seized the opportunity and exploited it to the fullest. Over a period of
25 years, the garments export sector has grown into a $6 billion industry that employs over a
million people. In the process, it has boosted the overall economic growth of the country and
raised the viability of other export-oriented sectors.This essay analyzes the processes by which
global trading rules came to help out a poor country like Bangladesh. It demonstrates the impact of
the rule changes on the garments sector, and the response of the sector to multiple challenges and
obstacles. It also discusses what steps Bangladesh should take in order to deal with the full
liberalization of the international garments trade, which occurred in January 2005 and which could
potentially threaten the countrys growth prospects. Finally, it details some of the recent
developments that have occurred since liberalization took effect.

Techological plan:

Technology means adding some extra benefit with a product because of the day to day operation
changes inside and outside of the organization. With the help of new technologies people make the
world small. For our Boutique house Todays Fashion House we believe in different changes,
and we want to fulfill the dream of our Government to build a Digital Bangladesh we will adopt
following technologies:

Using of CAD software for new quick designs;

Launching a new website named www.todaysfashionhouse.com;
Using computer with internet connection;

Launching Website: Here another part of our technological plan will be, we will launch a website
for our company own named www.todaysfashionhouse.com we will provide our every product
information there. Our customers can order if they want to be the unique one. Then there will be a
contact with us box. There our customers can be able to communicate with our design masters
directly. We think this will be the easiest way to communicating with our customers. We are
promising that , our customers are our assets so will take care of you anyhow, any time with the
help of latest technology.

Product features will be in the Website: Another thing our product features will be given in the
website. If customers want that they wants to modify our product feature then they can do that via
communicating directly with the customers.

Computer with internet connection: to communicate with managers other customers we will
have internet connected computers in our showroom as well as production house to know what is
the production, when the raw materials coming to the house delivered to the showrooms and other
customers with in the time.

Financial Study:

We are thinking that, our company is seeking a substantial long-term business loan for the purpose
of developing the clothing line. We are assuming to start our business operation from the month of
January 2011. After a long calculation we had assumed that we can go to the Break Even point in
the February, 2013. We are giving a summary of the total projects financial plan.

1. Pre-Operation Plan;
2. Post-operation Plan.

Pre Operation Plan: here we had assumed in which sources we are going to invest and as we
said earlier our company owner will be 5 persons. Our estimated project cost & our owners
investment portion with loan are given below:

Estimated Project Cost Amount

Virtual production 2,680,000

Building and other civil Works 1,000,000

Security Money for 3 Showrooms (3@ 150000) 450,000
Warehouse(5 katha)& Showroom Decoration (200000*3) 600,000
Furniture & Electronic Equipment (Chair- Table, AC- 600,000
3(37000*3=111000), Generator-1-150000, Fan,Iron,light)
Computer (8@25000) 200,000
Transportation (1 Covered Pick-up Van) 1,000,000
Telephone(Land Phone4*2000) 8,000
Cash in hand 10,166,466
Patent (USD $ 4200*69.77) 293,034
Trade License 2,500
Total Estimated Project Cost 17,000,000

We will collect the fund by the following proportion:

Source of Fund: Amount Amount

Paid up Capital

proportion of
owners'
1st owner 1,900,000.00
2nd owner 1,900,000.00
3rd owner 1,900,000.00
4th owner 1,900,000.00

5th owner 1,900,000.00

9,500,000.00
Project Loan 7,500,000.00
Total Source of Fund 17,000,000.00

Post-Operation Plan: in Post operation plan of our project there will be main 4 statements.
Those will be:

Income Statement;
Balance Sheet;
 Owners Equity Statements &
Cash Flow Statement.

Income Statement: Income statement is a company's financial statement that indicates how the
revenue (money received from the sale of products and services before expenses are taken out,
also known as the "top line") is transformed into the net income (the result after all revenues and
expenses have been accounted for, also known as the "bottom line"). From the following statement
we can see that our net income is increasing day by day because we will expand our business and
try to reach at the BEP within 2.20 years.

Net Profit after tax

35,484,267.5
3
27,446,514.5
1
20,154,335.3
13,734,042.1 2
5
7,980,475.00

1 2 3 4 5

Balance Sheet: Balance Sheet is the statement where all kinds of Asset, Liability & Owners equity
took place. This is just the summary of an organization. A balance sheet or statement of
 financial position is a summary of the financial balances of a sole proprietorship, a business
partnership or a company. Assets, liabilities and ownership equity are listed as of a specific date,
such as the end of its financial year. A balance sheet is often described as a "snapshot of a
company's financial condition". Of the four basic financial statements, the balance sheet is the only
statement which applies to a single point in time of a business' calendar year.

We all know, A = L + OE. Balance sheet is the place to show that within a quick view.

Particulars Year 01 Year 02 Year 03 Year 04 Year 05

Asset
Non-current
Asset:

Tangible assets 3,858,000.00 3,858,000.00 3,858,000.00 3,858,000.00 3,858,000.00

Less: 346,972.00 693,944.00 1,040,916.00 1,387,888.00 1,734,860.00

Depreciation
Net Tangible 3,511,028.00 3,164,056.00 2,817,084.00 2,470,112.00 2,123,140.00
assets
Intangible asset:
Patent (USD $ 293,034.00 293,034.00 293,034.00 293,034.00 293,034.00
4200*69.77)

Trade License 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00

295,534.00 295,534.00 295,534.00 295,534.00 295,534.00

Net non current 3,806,562.00 3,459,590.00 3,112,618.00 2,765,646.00 2,418,674.00

Asset

Current Asset

Virtual 2,640,000.00 2,640,000.00 2,640,000.00 2,640,000.00 2,640,000.00

Agreement

Cash in hand 4,692,475.00 7,808,712.16 16,392,486.82 31,356,858.47 54,261,941.38

Ending Inventory 6,466,133.33 13,957,273.51 22,525,008.06 32,208,126.78 43,026,295.52

Accounts 34,351,333.33 55,153,918.52 69,487,842.41 80,908,693.27 91,206,064.88
Receivable
Net Current 45,509,941.67 76,919,904.18 108,405,337.29 144,473,678.52 188,494,301.77
Asset

Total Asset 51,755,475.67 82,577,438.18 113,474,871.29 148,955,212.52 192,387,835.77

Liabilities

Fixed Liability

Owners Equity 14,180,475.67 30,861,188.18 53,969,871.29 83,538,337.52 123,845,523.27

Non Current
Liability:
Outstanding long 6,000,000.00 4,500,000.00 3,000,000.00 1,500,000.00 0.00
term loan
Total Fixed 20,180,475.67 35,361,188.18 56,969,871.29 85,038,337.52 123,845,523.27
liability

Current Liability

Accounts Payable 28,875,000.00 44,756,250.00 54,285,000.00 61,936,875.00 66,802,312.50

Long Term Loan 2,700,000.00 2,460,000.00 2,220,000.00 1,980,000.00 1,740,000.00

Paid
short term loan 0.00 0.00 0.00 0.00 0.00
paid
Total current 31,575,000.00 47,216,250.00 56,505,000.00 63,916,875.00 68,542,312.50
liability

Total Liability 51,755,475.67 82,577,438.18 113,474,871.29 148,955,212.52 192,387,835.77

Owners Equity Statement: Owners Equity is owner's ownership (equity) in the business, or the
amount of the business assets owned by the business owners. The calculation for owners equity is
assets minus liabilities.

OE = A L (Owners Equity = Asset Liability)

 Particulars Year 01 Year 02 Year 03 Year 04 Year 05

14,180,475.6 30,861,188.1 53,969,871.2

Paid up Capital 9,500,000.00 83,538,337.52
7 8 9

add:
5,000,000.0 6,000,000.0 6,000,000.0
new capital 0.00 9,000,000.00
0 0 0

18,734,042.1 26,154,335.3 33,446,514.5

net profit after tax 7,980,475.00 44,484,267.53
5 2 1

32,914,517.8 57,015,523.5 87,416,385.8 128,022,605.0

17,480,475.00
1 0 0 5

less:
1,000,000.0 2,000,000.0
Sales of capital 0.00 0.00 3,000,000.00
0 0

withdraw 3,299,999.33 2,053,329.63 3,045,652.21 3,878,048.28 4,177,081.78

30,861,188.1 53,969,871.2 83,538,337.5 123,845,523.2

owners equity 14,180,475.67
8 9 2 7

Cash flow statement: A cash flow statement, also known as statement of cash flows or funds
flow statement is a financial statement that shows how changes in balance sheet accounts and
income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and
financing activities.

Particulars Year 01 Year 02 Year 03 Year 04 Year 05

Net Profit after tax 7,980,475.00 13,734,042.15 20,154,335.32 27,446,514.51 35,484,267.53

Less: Operating activities, cash flows provided by or used in:

Depreciation 588,000.00 588,000.00 588,000.00 588,000.00 588,000.00

Increase in accounts 0.00 20,802,585.19 14,333,923.89 11,420,850.86 10,297,371.60
receivable
Increase in accounts 0.00 15,881,250.00 9,528,750.00 7,651,875.00 4,865,437.50
Payable
Increase in 0.00 7,491,140.18 8,567,734.55 9,683,118.72 9,683,118.72
inventories
Net cash flow from 7,392,475.00 10,576,237.16 15,803,774.67 20,944,371.65 30,645,082.91
operating activities
Less: Cash flow from Investing Activities
Sales of Fixed 0.00 0.00 1,000,000.00 2,000,000.00 3,000,000.00
Assets
Purchase of Fixed 0.00 (5,000,000.00) (5,000,000.00) (4,000,000.00) (6,000,000.00)
Assets
Net cash flow from
Investing 7,392,475.00 5,576,237.16 10,803,774.67 16,944,371.65 24,645,082.91

Activities
Less: Cash flow from Financing Activities
Project Loan 2,700,000.00 2,460,000.00 2,220,000.00 1,980,000.00 1,740,000.00
paid/(received)
Short Term Loan 0.00 0.00 0.00 0.00 0.00
Paid /(received)
Net cash flow
from Financing 2,700,000.00 2,460,000.00 2,220,000.00 1,980,000.00 1,740,000.00

Activities
Net (Decrease)/ 4,692,475.00 3,116,237.16 8,583,774.67 14,964,371.65 22,905,082.91
Increase in cash
Beginning cash 0.00 4,692,475.00 7,808,712.16 16,392,486.82 31,356,858.47
balance
Ending Cash 4,692,475.00 7,808,712.16 16,392,486.82 31,356,858.47 54,261,941.38
Balance
 Cash flow of our Company

60,000,000.00

50,000,000.00
Net (Decrease)/ Increase
40,000,000.00 in cash
Amount

Beginning cash balance

30,000,000.00

20,000,000.00 Ending Cash Balance

10,000,000.00

0.00
1 3 5 7 9
year

Break Even Point: From Payback period we had came to know that, if our estimated project run
properly then we can cover our capital cost in 2.20 years.

Year 05

Year 04

Year 03 BEP point (Investment = profit will be 0 at IRR 29.058724%)

Year 2.20 tk. 9,500,000

Year 02

Year 01

Financial Analysis:

Two Major information about the financial statement of Friends Fashion House is like:
1. Payback period 2.20 Years
2. IRR (%)
29.058724 %