business plan

YOUR TOTAL RENT SOLUTION

BUSINESS ADMINSTRATIoN DISCIPLINE

Business Plan Development

RentDoors

Course Name: Entrepreneurship Development

Course Code: BA-3105

Submitted to

Dr. Md. Noor Un Nabi

Professor

Submitted By

Group Name - Untitled Name ID

Shuvro Kumar Paul 110326 Md. Abdus Shakur 120303 Md. Jannat Ul Islam Saikat 120306 Md. Sohel Rahman 120322

Date of Submission: 20 April, 2015

Business Administration Discipline

Khulna University

No. Topic Page

1 EXECUTIVE SUMMARY 1

2 2. ENTERPRIZE OVERVIEW 3

2.1 Mission Statement 3

2.2 Vision 3

3 SERVICE DESCRIPTION 3

3.1 Main Service Portfolio 3

3.1.1 Rent Information for Rent Seekers 4

3.1.2 Rent Management for Apartment Owners/Landlords 4

3.2 Subsequent Wings 4

3.2.1 Grocery Service 4

3.3 Opening Hours 4

4 MARKET AND COMPETITION ANALYSIS 4

4.1 Market Analysis 4

4.1.1 Target Market Demographics 5

4.1.1.1 Population Growth 5

4.1.1.2 Age Segment and Gender Ratio 5

4.1.1.3 Trend of Income and Expenditure 6

4.1.2 Current Apartment Rents 6

4.1.3 Summary of Customer Segment 7

4.1.4 Future Growth 7

4.1.4 Future Growth 7

4.2 Competition Analysis 7

4.2.1 Porters 5 forces 8

4.2.2 SWOT Analysis 9

4.2.3 Pestel Analysis 10

5 Marketing Strategy 11

TABLE OF CONTENTS

5.1 Target Market: 11

5.2 Objective 11

5.3 Marketing Mix 11

5.3.1 Product 12

5.3.2 Place 13

5.3.3 Pricing 13

5.3.4 Promotion 14

5.4 Brand 14

6 THE BUSINESS MANAGEMENT SYSTEM AND STURCTURE 15

6.1 Location 15

6.2 Legal Issues 16

6.3 Enterprise Licensing 17

6.4 Organizational Hierarchy and Structure 18

6.4.1 Roles 17

6.4.2 Qualifications of Internal Stakeholders 19

7 Financial Planning 21

7.1 Sales Forecast Table and Breakdown First Year 21

7.2 Initial Investment Table 21

7.3 Marketing Cost 22

7.4 Monthly Operation Cost 22

7.5 Profit & Loss Statement 23

7.6 Return on Investment 23

8 JohnSon & Scholes justification 23

Reference (footnotes) 25

RENTDOORS BUSINESS PLAN 1

1. EXECUTIVE SUMMARY

Considering the present scenario of housing necessity, it is quite obvious to realize the

importance an organized platform to seek rent service, weather it is an entire apartment or

merely two or three room apartment facility. The population growth rate in Bangladesh has

always been on the rise for last few decades and this rapid growth of population has accelerated

the necessity of a solution-platform where to find available rent information according to the

respective necessity, choice and comfort.

According to the recent population census, the official size of population of Bangladesh has

already reached around 160 millions. Comparatively, in proportion with the increasing

population size, the number of service holders and corporate officials (both government and non-

government) has increased. About 70-75% families in this country do not have own

accommodation/housing facilities. Some of them have to, or in other ways, prefer to live in

rented apartment buildings. Interestingly, the majority of such tenants belong to the Job Holder

Class (JHC). However, this large segment usually is seen facing difficulties to find suitable location

or apartments to facilitate their accommodation needs according to their budget, requirements

and comfort.

To grab this opportunity of need prevailing in the market segment, RentDoors has come to make

help home seekers with rent solution according to their budget, preference and location. The

idea was conceived by one of the founder of RentDoors who along with other key partners of the

business is a student of Business Studies and Management Science. Hence, the educational

expertise in management field in addition with practical market knowledge and experience will

surely be a good combination for RentDoors success.

RentDoors will provide available rent information to its clients on the basis of location, room

requirements, budget range etc. Besides, it will meet the necessity of apartment owners or

landlords by getting their house/apartments rented. RentDoors will operate as a rent agent

among the rent seekers and rent providers. The operational and service domain of RentDoors

will be run in three major citiesDhaka, Khulna and Chittagong.

The marketing strategy of RentDoors will be extensive for initial periods because the concept is

not yet implemented in Bangladesh. The market will require making educated and realizing the

necessity and value of the service proposition.

The profit-loss statement of RentDoors show the viability and profitability of the venture. One of

the main advantages of this venture is its required investment to startup. The venture needs very


marginal amount of cash for initial investment in comparison with its potential growth and

profitability.

In short, RentDoors will be a successful profitable venture with high growth potential. RentDoors

promises high quality rent facility within the reach and in the easiest effortless way.


2. ENTERPRIZE OVERVIEW

RentDoors will be established as a partnership enterprise under the Partnership Act 1932. The

main operation of the enterprise will be run in Dhaka, Khulna and Chittagong cities. The partners

with overall responsibility will solely manage the capital funding of RentDoors.

2.1 Mission Statement

RentDoors : your total rent solution

The mission of RentDoors is to provide clients with a well-organized platform for their complete

rent solution. We emphasize on client satisfaction and long-term customer relationship.

2.2 Vision

Our vision is to be the largest home rent service portfolio in Bangladesh through quality client

service and familiarizing RentDoors as the number one choice for rent solution.

3. SERVICE DESCRIPTION

RentDoors will be the only service enterprise that works for rent solution. The operation will be

established in Khulna, Dhaka and Chittagong simultaneously. RentDoors care clients preference,

satisfaction and need. The following services will be available at RentDoors with 24 hours/7days

online access.

3.1 Main Service Portfolio

RentDoors have planning to extend business operation by expanding its service portfolio after

five to six years of initial operation. Moreover, the enterprises main service portfolio includes

the following:

3.1.1 Rent Information for Rent Seekers

RentDoors will manage a database where the available updated rent information will be available

according to the location, room size and budget scale. The database can be accessed through

Internet browsing our website (rentdoors.com.bd) or the rent seeker may come in person to our

Chamber Station which will be available in every city where RentDoors will operate.


3.1.2 Rent Management for Apartment Owners/Landlords

The apartment owners and local landlords are another customer segment of RentDoors.

RentDoors will serve this segment by advertising and getting their home/apartments rented.

RentDoors will maintain their to let information in the database with the facility of 360 angle

view and necessary details of the apartments to be rented. The apartment owners will also enjoy

the facility of customizing the information of their respective apartments by including extra

features and description.

3.2 Subsequent Wings

Besides the main service offering, RentDoors

has some future planning regarding additional

service offering. Some of those future

offerings are:

3.2.1 Grocery Service

RentDoors will offer day-to-day grocery

service to the clients. Order can be placed

online or through mobile SMS with quantity,

quality and necessary attributes mentioned.

RentDoors will reach the ordered grocery

items to the intended address.

3.3 Opening Hours

The customer Chamber Station will be open everyday except the weekly holiday (Friday) from

9:00 AM to late 11:30 PM. Besides, the online portal will be available for 24 hours and 7 days a

week. Database will automatically update after each 48 hours interval.

4 MARKET AND COMPETITION ANALYSIS

4.1 Market Analysis

In Bangladesh, the house rent market is very big and maintaining a constant growth rate. A large

number of people seek for a rent everyday whether it is for living purpose or official purpose.


According to National Bureau of Statistics (NBS), Bangladesh, the large portion of the populace is

composed of age segment ranging from 15 to 50 years.

4.1.1 Target Market Demographics

Our target market is the class of people who live in rented apartment buildings and corporate

business firms searching for suitable office space. Market demographics cover the entitys

different social-economic attributes for example, age, sex, education, income status etc.

4.1.1.1 Population Growth

According to the recent population census (2011) data of Bangladesh National Bureau of

Statistics, the population has reached its 140 million in 2011 and increasing at an average growth

rate of 1.2%. Among this huge span of population, around 70% people live in the rented

house/apartment buildings.

4.1.1.2 Age Segment and Gender Ratio

The age of RentDoors primary target market segment fall between 20-50 years who are usually

seen seeking rent. The bars of the following Age graph show the number of people who are aged

in between 20 and 50 years. RentDoors marketing strategy will focus appealing this segment to

grab the potential opportunity.


4.1.1.3 Trend of Income and Expenditure

According to World Bank record, the current per capita GDP of Bangladesh is $958 with an annual

growth rate of 6%. The nominal has increased in last few years though the real income has not

increased that much.

However, peoples lifestyles have changed a lot that are being expressed in terms of expenditure

pattern and allocation. Recently, the trend of expenditure on accommodation sector has

increased as the standard of living is improving gradually.

4.1.2 Current Apartment Rents

Considering last few years data on rent status, the current rent fare is lower than that of last few

years. The reason behind this diminishing trend is the availability of rent because of sudden

growth in house-building

industry. The number of

apartment buildings has

increased in greater

number last few years

and the trend is still on

the rise. The average rent

fare varies from region to

region. In city center

areas, the rate is very high

whereas with same

facilities the fare is

remarkably lower outside of city center areas.

Rent Fare Comparison


4.1.3 Summary of Customer Segment

Summarizing the potential customer based on the indicators and studies mentioned

above, the target market statistical portfolio is:

Target Market: Rent Seekers and Apartment Owners/Local Landlords

Population of Locality: 30 million gross (Including Dhaka, Khulna, Chittagong)

Percentage of Total Potential Customers: 60% of total population in target market

Income Group of Potential Customers: Upper-middle to Lower-middle Class

Age of Potential Customers: 20-50 (primarily)

Average Spending Power (on accommodation): 15000 BDT/per month

Average Growth of Target Market: 1.5% yearly

4.1.4 Future Growth

The market will grow in proportion with the total population. Current statistics show that the

growth rate of population in Bangladesh is very high and the number of rent seekers is also

increasing. So, it will be a rational estimate to assume that RentDoors will experience a profitable

constant growth in revenue and resources. The business will grow rapidly in association with the

expanding target market.

4.1.4 Future Growth

The market will grow in proportion with the total population. Current statistics show that the

growth rate of population in Bangladesh is very high and the number of rent seekers is also

increasing. So, it will be a rational estimate to assume that RentDoors will experience a profitable

constant growth in revenue and resources. The business will grow rapidly in association with the

expanding target market.

4.2 Competition Analysis

Since the industry is new in Bangladesh and has a growing demand for the service, RentDoors will

introduce a new way of accommodation in Bangladesh. It will give a competitive edge in the market. This

innovative idea will create an urge to the customers to find accommodation not by themselves but

through RentDoors. They have never before been introduced by this aspect of finding proper


accommodation. It will ensure a helpful hand for the home owners too. In order to have a clear idea about

our business idea, we have introduced Michael Porters Five Factor model.

4.2.1 Porters 5 forces

Threat of the new entrants: Industry characteristics is very important to determine the threat of the new

entrants. It depends more on the barrier to entry to the industry. That means the larger the barriers to

entry the more difficult to enter the industry. In this case, the industry is new, so the threat will be higher.

Because, barriers of entry is low. More companies will be interested to come into the industry. Economies

of scale can be useful in the section. If our company can get in the stage of economies of scale then it will

be very expensive to match there service with RentDoors.

RentDoors will have the control over the suppliers because it will capture the supplier market first as it is

the first company to enter into the market. There will be less chance for the switching. So, it will be easier

to control the market share.

Threat of Substitute Products: In every industry there will be a substitute product or service for one. In

the case of RENTDOORS, whole apartment selling and arrangements by Property Bazar Limited and

Property listing.com is the main substitute product for our product. They can enter the market. Online

shops like bikroy.com can introduce apartment renting section and thus it will be our substitute service.

Threat is high in this sector.

Bargaining power of buyers: Customers are essential for the survival of the business. Here buyers power

are low because switching cost is low in this side. And also the number of supplier is very low, so the

bargaining power of buyer is low in this sector of RentDoors.


Bargaining Power of suppliers: Here supplier means the land owners. In other sense they are our

customers too. Here there are too much suppliers, so the bargaining power of suppliers are also low.

There is no scope of our suppliers to get into a direct business in an organized way so that condition fulfills

the situation.

Competitive Rivalry: Rivals are the companies with same type of products targeting same customer

group. In this case Property Bazar Limited and Property listing.com are the main competitor. Apart from

this Bikroy.com and ekhoni.com are also competitors. But all those competitors are our indirect

competitors and those are not involved in the manufacturing process of our product.

The different approach of RentDoors will attract the customers towards an easy living situation and tensed

free switching. This integration of easy living solutions will grow customer base more quickly.

4.2.2 SWOT Analysis

To understand the viability of the business and its potential threat we have made this SWOT

analysis to go into the deeper.

Strength

RentDoors, first of all, has its first movers advantages, as there is no such service given

by any other companies.

The market of rent service is very big and the necessity of the service tells about itself.

The partners of the business are experienced in business field, so, that is another

strength that ensures the highest efficiency.

Weakness

Being a partnership business, there may occur some bureaucratic complexities that can

slow it down.

As the operation will be run in three different cities, it may create some difficulties in

running the enterprise properly.

Opportunity

RentDoors have some additional potential opportunity to extend its portfolio alongside

the rent service

The initial investment and operational capital is few in amount in comparison to its

yearly/monthly revenue generation

Since the service has an all over demand in the entire country, RentDoors can easily

expand its operation in future to some other cities.


Threats

The idea of this enterprise can easily be copied some other companies. So, there is a

potential competitive threat of the enterprise

As a partnership organization the continuity of the business a major question of

concern.

4.2.3 Pestel Analysis

Now, we will do a PESTEL analysis for our business plan for the analysis of the macro environment. PESTEL

summarizes the possible influence of success and failure of a particular strategy.

Environmental analysis can be summarized into six categories. For the house rent industry in Bangladesh,

can be summarized below

Political: Political situation in Bangladesh is not stable but it wont affect the House Rent industry. Security

controls are high. Easy generation of the license will make it easier for a service company to start the

business. In summary we can say

Instability of government

High security controls

Easy licensing

Economic: Economic condition of people in Bangladesh is not so high like developed countries. But the

growth rate is high. More companies are investing here and more job opportunities are opening. For this,

there will be job switching and more accommodation will be needed. Commercial home apartment

builders are developing also. In summary

Low income

High economic growth rate

More job opportunities

Commercial Home Apartments

Social: People with different cities find it difficult to cope up with the situation and find proper

accommodation in the new city. More students are engaging in the higher education and find it difficult

to get an accommodation in the new place, especially in big cities. Moreover, some people wants their

tenant with some special requirements. Religious pressure is also there too.

Hard to find accommodation in new place

More higher education

People traveling more

Special wants of house owners.


Technological: World is developing with the technology. We are also developing to get into the vibe of

technological revolution. More ecommerce site is emerging in the business world. Advanced database

management technology will help secure database management for our customers. Teleconferencing can

be also helpful.

More ecommerce sites

Advanced database management

Advance payment technology

Mobile application technology

Environment: Overall climate conditions in Bangladesh is vibrant in different seasons. Moreover people

are not willing to go for a search in highly rainy day or in a hot summer day. More land for apartments

and housing.

Vibrant season

More land for apartments

Legal: There are some legal restrictions in providing an accommodation services. People need to agree on

the contract with the owners. Legal considerations must be given by the both parties.

Legal restrictions

Legal papers and considerations.

We can see that the macro environmental factors are acceptable for RentDoors. We will do a JohnSon &

Scholes Model for the business plan to justify it after our marketing and financing plan. We will discuss

about it later in the plan.

5 Marketing Strategy

Marketing strategy is the way to achieve our objectives to grab the market share. Its a game

plan. An ideal marketing mix with proper target market will set the proper market plan.

5.1 Target Market: We have set a target group of job holders and students. Our main focus is to

help our customers to get proper accommodation.

5.2 Objective: RentDoorss main objective is to give proper accommodation solution to

customers and also to give proper tenant according to the requirements given by the owners.

5.3 Marketing Mix

RentDoors rely on the services and the satisfaction of the customers. Customer retention and

satisfaction is very important in this business. A proper marketing mix will serve RentDoors to

reach its objective.


5.3.1 Product: RentDoors is a service company. It is providing a different product or service

available to the customers to suit their needs for the accommodation. There will be no service

category for RentDoors but 2 types of product for two types of customers. In a sense, our

suppliers are also our customers.

Our main service is to provide proper accommodation and tenants. Two types of service is

described below

Accommodation: RentDoors will provide accommodation service to those who will try to find it

in a new city which is unknown. When someone get into a city, it is very tough for him or her to

find a proper accommodation suitable to him or her. RentDoors will provide information

according to the requirements and also can get him or her to rent the apartment or the house. It

gives a competitive advantage to RentDoors as it will be different from other services. Property

Bazar Limited is giving apartment listing to buy it but RentDoors is giving proper solution to rent

the house or apartment. It can be an indirect substitute product not substitute as we are

contacting our customers over the air and can help them get the home signed in papers for rent.

Tenants: According to the objective RentDoors will provide proper accommodation solution. It

needs to have a liaison with the owners. RentDoors will contract the owner make liaison with the

owner to give tenants according to their choice. Sometimes, it happens that owner is not willing

to give rent to a customer who doesnt suits his or her requirements. We will find a sort list in

our database and customer will choose from his according to the requirements and it will also

suit the need of the owner. Both parties need to sign an agreement of rent abiding the

requirements given by the both parties.

So, our service is different in the ways

Modified service

Suits requirements

Convenience of the service

Customer retention program for our customers (will be discussed in the promotion)

Agreement between both parties to resolve future dilemma.

These differentiation factors in RentDoorss service are

unavailable in the market and therefore will encourage promising results in sales and promotion.


5.3.2 Place: RentDoors is a service company. It will provide accommodation services through

online. But it needs to have a physical office in which the papers will be stored and physically

search for the apartment displayed in the office.

The venue or the location of the office will be in a place where people can sassily reach and

overall our office is on the air. Our main office is one the air online portal. People can search in

our page, get membership and go for the apartment needed. The office will be a small room.

There will be place for taking token and there will be a line to get into the place where you will

see the listing.

Above all, RentDoors will work through mainly online portals. It will create a database online and

there will be a mobile application to link it with the webpage database.

5.3.3 Pricing: RentDoors is one of the companies that can earn profit through easy means of

service. Our pricing strategy will be very unique. We wont charge our customers for the

information or getting into the database. We will charge when they were taking the rent. There

will be easy pricing strategy. We will charge differently to our two different customers

Rent Seekers: We will charge 30% amount of the value of the rent for the first month only. And

if we take the customer to the place and get things done through RentDoors then a 1000 tk

charge will be taken along with the 30% value.

House Owners: For the house owners, we will take 40% of the rent amount given by his or her

tenant in the 1st month. No extra charge for the paper work. Only the first months amount is

charged.

So, if we summarize the pricing strategy, it will be like this below

Customer Service Charge Documentation Charge

Rent Seekers 10% of the Rent 1000

House Owners 10% of the Rent No charge

It has been generated after an average costing of the rents and decided on the profit over the

costs. That means RentDoors has created a costing plan and allocated the rent charges calculating

the cities average rent.

RentDoors decided to change its pricing strategy according the Product or service Life Cycle

position. It will add value to the product or service. If we look at the product life cycle, RentDoors

are in the introductory stage of the life cycle. Presented pricing will be suitable for the service to

grab the market. It will take time to move on to a higher pricing strategy if our product reaches

higher level in the life cycle stage.


5.3.4 Promotion:

Promotion is the core effect of marketing mix. RentDoorss success primarily depends on the

promotion. Getting people involved in the promotional affairs will need a heavy promotional

programs. But technically we can do it through initially with normal budget. Promotional

activities would include social promotion with some commercial ones.

Main Promotional activities includes

Television Commercial: There will be a 50 sec television commercial for our service

developed by advertising agencies.

Social Media Promotion: To engage more people, RentDoors will have social media pages

with different offers. It will include Facebook page, Google Plus page and twitter page.

Banner: Banners in cities different places will be placed to get people know about our service.

Mobile Application: A mobile application will be developed to increase the participation and

service differentiation. It will be developed for Android OS, iOs and also for windows phone

users.

Leaflet: Leaflets concerning our offers will be promoted in different places and occasions.

Campaign: Easy living campaign will be conducted in the launching ceremony of our each

branches.

Web page promotion: Website design and website promotion will be conducted with the

integration of social media pages. Database panel will be made different for the registered

users.

Customer Retention Program: Customer retention program will be initiated with proper

discounts. If anyone avails our service for a single time, he will be entitled to get a 20%

discount in the two successive services. Also there will be special offers with different

program will be mailed to them through newsletters and also via cell phone calls.

All the branches will be promoted timely. It will give RentDoors a competitive advantage as the

monopoly marketer of the service. If above mentioned marketing mix or blend can be done

perfectly, RentDoors will achieve its objective in time.

5.4 Brand

RentDoors is a brand decided by all of our partners.

Language The official Language for our product is English

Name The name RentDoors emphasizes the way to get your suitable accommodation.

Quality The picture in the logo is a home that represents the suitable destination of anybody.

Colors Primary colors are Yellow and Green in our logo


Font Simple font is used

Logo

6. THE BUSINESS MANAGEMENT SYSTEM AND STURCTURE

6.1 Location

RentDoors will serve in three major cities of BangladeshDhaka, Khulna and Chittagong. Each

city with its special characteristics provides some opportunities as well some challenges. One of

the main advantages is the distribution of risks among the three different regions. For example,

if there is a slump in any particular year for one region, the deficit can be distributed to others.

Khulna City: Khulna is the third-largest city of Bangladesh and has a population of about 1.5

million (2012) . Khulna is an old river port located on the Rupsha River. It is an important hub of

Bangladeshi industry and hosts many national companies. Port of Mongla, the second largest

seaport in the country, serves it. It is also one of the two principal naval command centers of the

Bangladesh Navy. The current population density is 19000/per square kilometer. The city is

located at the southwestern region of the country with an areal of 59.57 square kilometer where

the total district covers around 4394.46 km .

Dhaka City: Dhaka is the capital city of Bangladesh and the tenth largest city in the world. It has

an estimated population of more than 15.5 million people in the Greater Dhaka Area. Dhaka is

one of the major cities of South Asia, being Bangladesh's seat of government and an important

cultural and financial center, alongside Chittagong. Dhaka is situated in the economic and

commercial heartland of Bangladesh. It is the seat of the Bangladesh Bank and the Dhaka Stock

Exchange. The city registered a gross municipal product of US$85 billion in 2008. It has seen

strong growth in finance, real estate, telecoms, insurance and technology. Dhaka is one of the

fastest growing startup hubs in the world . There is a large concentration of multinational

companies. The main commercial areas of the city are Motijheel, Dilkusha, Kawran Bazar,

Gulshan, Mohakhali and Banani. The city has a growing middle class, driving the market for


modern consumer and luxury goods.

Three Operating Areas in Google Map view

Chittagong City: Chittagong is the second largest city of Bangladesh with a population of 4.5

millions. Often described as the commercial capital of Bangladesh, Chittagong is the largest

seaport and most diversified industrial center in the country; accounting for 80% of international

trade, 40% of industrial output and 50% of tax revenues . It home to many of the oldest and

largest companies in Bangladesh. The Chittagong Stock Exchange has a market capitalization of

US$25 billion. The Port of Chittagong is one of the hundred major container ports in the world,

ranking 90th in 2012. Its annual cargo tonnage was worth over US$60 billion. Chittagong was

ranked as the most efficient port in Asia in 2013. In recent years, it has emerged as one of the

fastest-growing cities in the world. It has a leading per-capita GDP among South Asian cities,

registering at US$5,492 in 2008.

6.2 Legal Issues

As a formal constructive issue, formation of any business venture requires some legal

foundations and legitimate characteristics. RentDoors will be established as a partnership

enterprise under the Partnership Act 1932. The main operation of the enterprise will be run in

Dhaka, Khulna and Chittagong cities. The partners with overall responsibility will solely manage

the capital funding of RentDoors. Along with the founders investment, external equity may

compose the overall operating capital. Whatever the case is, for any such external funding the

responsibility will spread over the founders and partners of the enterprise.


6.3 Enterprise Licensing

In Bangladesh, Partnership firms can operate freely without being registered. However, we would

like to register RentDoors under the Partnership Act 1932. The direct authority of commerce

ministry, The Registrar of Joint Stock Companies and Firms (RJSC) deals the licensing procedures.

As a registered firm, RentDoors can enjoy some legal rights and facilities.

To Start a Partnership Firm following task to be required:

Prepare a Partnership Agreement

Partners Meeting Minutes

Trade License

TIN Certificate

VAT Registration Certificate

Import Registration Certificate

Export Registration Certificate

Various License/Permission according to the nature of business

Bank Account

Membership Certificate of respective Trade Body

6.4 Organizational Hierarchy and Structure

As an organizational being, a proper management structure is required to maintain the operation

successfully. RentDoors will maintain a simple four level of tall hierarchy in its operation. On the

top of the level, the responsibility will be bestowed upon the founding partners equally, in

specialization basis. Under the direct supervision of top layer there will be a manager for each

region. The manager will supervise the next level of hierarchy with direct contact with database

operator, telephone operator. And both the manager and database operator will have reporting

relationship with the bottom level employee, the data collector/manager.


Figure 2: Organization Hierarchy

6.4.1 Roles

Partners

The main duties and responsibilities that will handled by the founder partners of the organization

are:

Regularly visiting the regional chamber stations and ensuring smooth management.

Negotiating with the apartment owners community/local landlords

Banking roles and cash management

Keeping relationship with key stakeholders

Ensuring employee salaries and payment system

Managing marketing and promotional activities

Managers

Keeping updates of day-to-day operations.

Supervising subordinates and taking care of their regular activities

Managing office hours from 9:30 AM to 11:00 PM

Initial personnel attendance record maintenance

Providing regular updates to the partners


Observing the cleanliness of the premises and directing as observed

Keeping a record of all billing and payments made

Database Operator

Updating regularly the available rent information in the database

Maintain online order placement and service delivery

Keeping records of day-to-day sales and forecasting and providing the information to the

regional manager

Reporting to the upper level or the regional manager about the current facilities and required

technological updates if necessary.

Telephone Operator

Regularly receiving clients call and providing them with quality feedback with care

Taking records of SMS booking of any apartment/flat.

Merging the sales information regularly and keeping contact with the regional manager

Data Collector

Collecting rent data time to time and providing the available rent information to the database

operator

Checking and maintaining interval in areas when collecting rent data

6.4.2 Qualifications of Internal Stakeholders

Partner 1 : Shuvro Kumar Paul

Educational Profile Bachelor of Business Administration, Management & Business Administration School, Khulna University, Bangladesh. Major in Marketing.

Diploma in Business Studies and Management Science, Universidade de Santiago de Compostela


Profession Profile PR and Communication Officer at Google Business Group, Khulna Region,

Bangladesh.

Partner 2 : Md. Jannat Ul Islam Saikat


Partner 3 : Abdus Shakur


Profession Profile Owner and manager of Family Business.

Partner 4 : Sohel Rahman


Project management, Masaryk Uniersity


7. Financial Planning

7.1 Sales Forecast Table and Breakdown First Year

Month Number of Customers (DAY)

Total Customers (monthly)

Rent charge

Documentation

Charge from Owner

Total Spending

% Increase Total Sales

January 8 192 1500 1000 1500 4000 768000

February 11 264 1500 1000 1500 4000 37.5 1056000

March 9 216 1500 1000 1500 4000 -18.18181818 864000

April 12 288 1500 1000 1500 4000 33.33333333 1152000

May 14 336 1500 1000 1500 4000 16.66666667 1344000

June 13 312 1500 1000 1500 4000 -7.142857143 1248000

July 15 360 1500 1000 1500 4000 15.38461538 1440000

August 13 312 1500 1000 1500 4000 -13.33333333 1248000

September 14 336 1500 1000 1500 4000 7.692307692 1344000

October 13 312 1500 1000 1500 4000 -7.142857143 1248000

November 14 336 1500 1000 1500 4000 7.692307692 1344000

December 16 384 1500 1000 1500 4000 14.28571429 1536000

TOTAL 14592000

We have hypothetically estimated the sales of each day, then multiply it for the month. As a result we got

our total sales for the whole 12 months and a total of 1 year sales.

7.2 Initial Investment Table

Cost Item Amount

IT/ Office equipment 800000

Phone Installation Cost (3x3000) 9000

Office Establishment 3000000

Documentation (legislation) 600000

Furniture and equipment 500000

Transportation (10*70000) 700000

Total 5609000

0

500000

1000000

1500000

2000000

Monthly Income

Monthly Income


Total Investment will be done through loan. According to the partnership business law, each partner will

be equally liable for the loan amount. And no partner can withdraw money from the profit until it reaches

return on invest = 0 point or the breakeven point. It should be mentioned that a operation expense will

be included in the loaned amount. So, a total of 6006000 taka can be loaned. So, approx. loaned amount

is 6050000 Taka.

7.3 Marketing Cost

Cost Item Amount

TVC 2000000

Media Publishing 1000000

Online Promotion 10000

Mobile application Development 100000

Other Promotion 1500000

Total 4610000

Marketing costs will start from the making of Television Commercial. As it is a new industry. We need to

focus more on promotion. So, here we estimated our marketing costs considering high interest in

promotion to increase the need of the people or increase the population of the market.

7.4 Monthly Operation Cost

Cost Amount

Rent 80000

Employee Salaries 3*30000 = 90000 3*20000 = 60000 3*15000 = 45000 6*10000 = 60000

255000

Office maintenance 12000

Utility Cost 50000

Total 397000

We have incurred monthly costs of Renting 3 offices which is estimated at 40000 taka at Dhaka, 25000

Taka at Chittagong and 15000 Taka at Khulna regional branch. Employee salaries have been divided. And

an office maintenance cost of 12000 taka and utility costs of 50000 Taka has been included

hypothetically.


7.5 Profit & Loss Statement

Particulars Amount

Sales (projected) 14592000

Operation Cost (Monthly*12) 4764000

Marketing Cost 4610000

EBIT 5218000

Interest @ 18% on Loaned amount 1089000

EBT 4129000

TAX @ 15% 619350

Net Profit 3509650

7.6 Return on Investment

Now we will see how our business model make returns on investment. We have calculated our ROI for

the first 2 years below -

Year 1 = ROI = (3509650-4609000)/4609000 = (23.85) %

Year 2 = ROI = (7019300-4609000)/4609000 = 52.29 %

We can see that our hypothetical data shows we will get our return on the second year. The break even

point will be in the 2nd or 3rd quarter of the 2nd year.

8. JohnSon & Scholes justification

In the JohnSon & Scholes model we have Suitability, Acceptability, Feasibility justifications.

Suitability: Here strategic choices are suitable with the existing environment. We have done PESTEL

analysis and Porters 5 Factor Model to determine the environmental condition and the position of the

competitors. In both cases, the model suits the environment.

Feasibility: Feasibility focuses on whether the organization has the resources to pursue the strategic

choice. We can see in a hypothetical way that RentDoors can pursue.

Acceptability: It focuses on the financial aspect and stakeholders aspect. Here, it is feasible in both

cases. As the model represents a sound growth and breakeven in the second year, stakeholders will find

it very usefull.

So, the model is perfect.

RentDoors will be a successful profitable venture with high growth potential. Market analysis

shows it is feasible to invest in the business. Investors will be very happy to see the returns So,


RentDoors promises high quality rent facility within the reach and in the easiest effortless way.

So, it is the perfect model for rent solutions.


Reference (According to Footnotes)

1. Bangladesh National Bereua of Statistics, Census, 2011

2. World Bank Report, 2013

3. Demographics of Bangladesh, Bangladesh Yellow Pages

4. 2007 population estimate, Bangladesh Yellow Pages, 2007

5. Bangladesh Bureau of Statistics; Area, Population and Literacy Rate by Paurashava 2001

6. Anushay & Hossain, "Branding Bangladesh: India's Neighbor Is Becoming A Major Startup

Hub | Anushay Hossain". Huffingtonpost.com.

7. Daily Star, http://archive.thedailystar.net/newDesign/news-details.php?nid=229505

8. "AK Khan group to invest big fund in infrastructure, tourism, textiles". The Financial

Express.

9. Thomas Wu, Kaplan Financial, Learning center, Strategic Choice, Page 6

COVER1Cover 2indexbody

business plan

Documents

rent service

market analysis

rent management

rapid growth of population

population growth rate

rent seekers

competition analysis

future growth