eent management

8/8/2019 Eent Management

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Description of business:

Our business will provide products including wedding dresses, cosmetics items and

event management service on a contract basis to the customers. On our event

management plan, Community center, decoration facility, photographers, renting

out the dresses and rent a car services are included. We will also maintain afriendly, fair and creative service environment, which greetings diversity, ideas, and

hard work. The contact will be on package system. Event management contacts will

depend according to the customers demand. We are assuring you a perfect

arrangement of starting a new part of life.

Financing:

Our total invested money is TK.50 lakh. Equally we will invest TK10 lakh by each

partner. We also have an alternative plan to take a loan which will amount the 50%

of the total invested money and to be paid off over 3 years with 10% interest. For

carry on the business this debt will cover the portion of the expenses which we

cannot finance with our invested amount of money. It might include office

equipment, office rent, stationary items etc.

This report is confidential and is the property of the co-owners listed above. Any

written or oral documents will be secret by the business owners. Any kind of copy or

change of this document is legally prohibited. It can be used only by the people who

are recommended to by the authority person to use it.

Political Environment:

Sound political situation helps to grow sound business condition. In our country

Political situation is not good at all. It always inhibits the growing of business. In this

case we can face problems to run our business due to politically unfriendly

environment.

Economic Environment:

Bangladesh is a developing country. The national economy has been gaining

momentum recently. The national unemployment rate has been hovering at a

relatively low level for two years. On the divisional level, especially Dhaka and

Chittagong continue to experience rapid expansion and prosperity. As these

regions accept many newcomers from the rust belt and other areas, it has become

more business focused. Business is booming in the grass root level. The annual

growth rates of new small businesses are soaring. Many businesses continue to


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expand in the countryside. Net job creation has advanced at a steady clip. High

technology areas have grown up in Dhaka, Rajsahai, Chittagong. According to

statistical yard book, our per capita income was $450 in the last year. For the next

five year, our economy is extremely favorable for doing business.

After 9/ 11 economic relations in Middle East and Asian countries especially the

Muslim countries have been greatly hampered with European, Australian and

American countries. The war in Iraq had influence on total international economic

environment but it did not cause any lethal for Bangladesh in relationship with outer

world.

Technology:

Advances in technology are difficult to predict. We have planned to provide serviceslike photography, decoration, sound system to our customers. We have a good

technology environment in our country. Here, instruments used for photography,

sound system and decorations are available. So, we can easily collect them. Also,

from the end of the 20th century, use of computer and other technology have

increased in a dramatic rate. People are very much familiar with them and want to

use them. So, any operation related to those technologies should not face any

problem regarding market demand.

Legal Concern:

Constitution of the people republic of Bangladesh consists of important laws andACTS to govern the business of the country. Some of the laws are from the English

Common law and other laws are from Indian Law. Here Contract ACT of 1872 and

Sale of goods ACT of 1930 are followed to govern the business. These laws are

written precisely and very much related to the business environment of the country.

There are no confusion going on regarding those LAWS and it supports all the legal

operation to make profit.

Current Marketing Situation:

Our Wedding Mall is a start-up company for which the most vital issue to its success

and profitability in the long run is marketing. We will offer superior and uniqueproducts and services to our customers. Most of the customer go abroad to do their

shopping. We want to attract those customers providing them quality products.

Also, we will provide them better sound system, photography services to make their

occasions valuable. In Dhaka, the market for a wedding service is yet wide open as

there is no such company which has dedicated its concentration solely toward this

service. There are some well-known malls that are providing with the different

services like photography, decoration on contractual basis. We think, we have


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likelihood to acquire the largest share of this yet-to-identify market as we possess

the knowledge and skills as well as the intention to do so. But, we must make sure

that we carefully perform all the marketing functions.

Industry Demand:

Bangladesh is a populated country with a population near 15 crore. About 20%

percent of them are young and labor market is very cheap. After the war of 1971,

this country is developing and the living standard and life style of people in

developing. So, we can say that the market is growing here and also the demand of

customers

Market Segmentation:

It is one of the most important parts of marketing research and analysis. We cannot

just go for the whole potential market. We have to select a target segment from the

potential market and communicate with them in order to sell our service. The

products and services we are going to offer are unique and exclusive. So we have to

identify the consumer segment that is willing to take these unique and exclusive

services, and is affordable of buying them.

Target Market:

Lovely Weddings market consists of consumers-brides & bridegrooms, who are

going to get married and want to buy or borrow bridal dresses, cosmetics, flowers,

shoes, and other accessories needed in a wedding. There are several steps in a

wedding. At first the Gaye Holud takes place in the houses of bride and

bridegroom one or two days before the wedding ceremony. Usually after one day of

the wedding, a party called Bou Bhat is held. So in each occasion people wear

different kinds of dresses. People who are invited in the parties also wear special

dresses suited for a wedding related party. So, invited people in the parties are also

our potential customers.

Its a common and traditional scenario that most of the time the brides or

bridegrooms parents or guardians or other family members are seen to shop for

them for the wedding occasions, and those shoppers are mostly women. So, the

middle-aged married women and their other family members are the most likely

customers of our store. Furthermore, we will also try to change the tradition by

encouraging the young couple-to-be people to come and shop themselves for their

wedding.


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Occasion:

The whole wedding ceremony consists of different activities. Customers demand

differs according to each activity. So, we can segment our market according to

occasion to better understand the need of customers.

Gaye Holud of Bride

Gaye Holud of Bridegroom

Wedding Ceremony

Bou Bhat

Religion:

We have planned to provide services for all the religious groups. Most of people

here is Muslim but still there are some people from Hindu, Khristian and other

religion.

0

10

20

30

40

50

60

70

80

90

1st Qtr

Muslim

Hindu

others

Target Consumer Profile:

Age 18 to 55.

Profession Students, businessmen, and professionals.


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Region The north part of Dhaka (Banani, Gulshan, Baridhara, Uttara, and

Cantonment.)

Income Level Family income of BDT 25,000 and above per month.

Health Consciousness Moderate to high.

Personality Gregarious and ambitious.

Attitude Towards Dining Out Moderate to high.

Willingness to Experiment Moderate to high.

We have described many things about our business, what we will do in future, our

ownership form etc etc. Nevertheless, it is time to describe about our product on a

precise form. We are going to describe our products too in this section.

Product:

Bangladeshi people used to wear different colors and varieties of dresses on

different part of a wedding ceremony. The dresses include sharies, panjabies,

sherwany, pagri, nagra etc. From our product section, we will arrange all those

things in a reasonable price for our customers. We will not only have wedding

dresses but also cosmetics items for the bride and bridegrooms. Our products willcontain all the things that brides and bridegroom of all religions and races require in

the wedding ceremony. We will also arrange products for the relatives and friends

and other invited people in the wedding ceremony.

Dresses for brides include saries, lehengas, and scarves etc. Sharies will include the

ones for wedding, Gaye holud (before wedding party), Bou vhat (after wedding

party), Sagai, after the wedding saries etc. Dress for bridegrooms include Sherwany

(long and heavy coat), Pagris (a kind of wedding cap), Punjabis, Pajamas, Coats,

Nagra (a kind of wedding shoes) etc.

Our other categories of cosmetic items will be the following:

All sorts of cosmetics, cosmetics boxes, artificial hairs, perfumes, etc for

brides.


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All kinds of accessories that bridegroom need for wedding and other

parties that include perfumes, men cosmetics, wrist watches etc.

All other accessories necessary to decorate a wedding party that include

festoons, balloons, flowers etc.

Special s shoes for wedding and other parties. Some sherwany, pagries,

coats, nagras will be there for renting.

Services:

Our Services will include wedding party management, providing rent-a-car service,

decorating the event and photography. We hope, if we can emphasize these

services and represent these in an attractive way; customers will find interest to

buy these services and will be satisfied. A wedding ceremony is mostly about family

prestige and respect. If it cant be arranged in a way it has to be than long term

dissatisfaction between two families will arise. Thus, to accomplish the programs in

a proper way and get all things done in a harmonious way we will be there to help

our customers. Recruiting us to organize and buying goods from our store will help

the customers to be cost efficient. Precisely, our offered service will be:

Decoration of house, stages, gate through lightings, flowers, net and other

festoons according to the customer demand and ability.

Camera with photographer to capture and save the lovely moments of the

parties.

High quality video recording and early delivery service.

Rent-a-car for bridegroom, for the guest and also for the transportation of

food.


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Other things such as sherwanis, pagries, and some other things for the

wedding are often borrow the bridegroom. We will provide the facilities by

keeping a portion of reserve in the inventory to rent them out.

We will arrange some package according to the different income level. Our

target customers will be upper middle and upper class people.

Size of a business:

Our new venture will be on Lovely wedding and there will be different segment. For

this we need a shop of 1700 square feet room in a well-known area like Elephant

Road, to keep our target market in mind.

Here we need 4-5 rooms for displaying product, show room of wedding

cloths, office room for communicate with the customer and a office for event

management section.

Getting experienced worker easily and the transportation cost should be low.

Jam free and well parking area because of the target market.

Around 15-20 workers need for the new venture. Among them 2people are

guards, 4 people to sale wedding things, 1persone to keep record of all the

Employees:

Position Number of employees

Manager 1

Event manager 1

Accountant 1


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Site officers 3

Sales Men/Women 4

Security Guard 2

Cleaner 2

Driver 1

Total employees 15

Office equipment:

To decorate our office and maintain our work properly we will use different things to

attract our customer. Some example are given below

Manager: 1 table, 6 chairs, a personal computer, and stationary items

Event Manager: 1 table, 2 chairs, a personal computer, and stationary items.

Accountant: 1 table, 2 chairs, a personal computer, a calculator, and

stationary items

Customers: 8 chairs on product section.

Showcases to display the products.

Decorating Items for the office.

Light and fan

2 air cooler.

Production plan:


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Physical plant:

The Uthshob mall will be located at Elephant Road, Dhaka where most of the

wedding malls are there. It will just beside the two big stores Shanai and Palki so it

will be easily noticeable by most of our customers. Main reasons of locating our

wedding mall at Elephant Road are:

Most of the customers know that all the wedding malls are located at

Elephant Road.

Elephant Road is easily reachable from any corner of the Dhaka city. Regular

counter buses and other transport facilities are available from Elephant Road.

Community center, photographers and a rent-a-car are also located near the

elephant road.

It is the most important commercial area in Dhaka city

Most people of the city used to go there for shopping and thats why it is the

most recognized place.

Our shop will be of 1700 square feet thus we hope, we can manage to all the

products and service portion of our business under a single roof.

Supplier of Products:

Wearing : Cosmetics :


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Elegance, Panthopoth, Jordana, National Museum

Dhaka Dhaka

Ferdous, Dhaka LOreal, Dhanmondy

Dhaka

Service Supplier:

Rent a Car:

ALIF rent-a-car

Decoration:

SHAJ GHAR

Photography:

Machinery and equipment:

Canon D50 Camera and Nikon .

Sony video recorder

Hp LaserJet Printer

Marketing Plans

Product Strategy:


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We will sell most of our products in our shop. Those will include sharies,

scarves, gowns, artificial hair, cosmetics, flowers etc for bides. For

bridegrooms, we will sell sherwanis, pagris, nagras, Punjabis, coats,

pajamas, men-cosmetics, and perfumes etc.

However, we will reserve a portion of our inventories to rent out only to

bridegrooms. We will not rent out any product to brides because it will not

be very profitable worth the effort since brides dont usually rent their

dresses or other things because their product price is quite cheep.

We will also sell dresses and other accessories to be used by the parents

and other relatives of the brides and bridegrooms because they will becoming in the store to shop for wedding more often than brides or

bridegrooms will.

To make our once-customers remember our store whenever they will need

to do bridal shopping we will deign our product packages featuring the

main aspects and benefits of purchasing from our store. Thus we will be

able to maximize the lifetime value of a customer. We will also include

some societal and environmental advices so that the customers feel good

for our store.

We will not only provide the dress for the bride and groom but also

targeted to supply some services like- rent a car, still picture taking and

video services, and decoration services especially, decoration of gaye

holod and club stage. These services will handle two of our friends. As

purchase a car is a matter of huge money so we are going to rent the cars

from rent car service providers in a contract basis. If the customers wantto hire the car from the rent a car company they can do it but definitely it

will take at least half times more money then ours. On the other hand, we

will purchase two or three camera as well as two video cameras for our

business which will be good branded product so that we can attract our

customer by this. In addition, to handle these cameras we will hire four

employees who have the tremendous efficiency in handling the cameras.


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Pricing Strategy:

We will follow Wal-Mart somewhat in our pricing strategy. We will clearlymention in all of our banners and advertisements as well as everywhere in

our store Right Price, Always! which entails customers will be able to buy

products from our store for the mot reasonable price.

We will charge a bit lower price for our products comparison to our

competitors. Since our store is new and most of the customers dont know

about us, lowering prices might be suicidal because then the other well-

known stores will also lower their prices and thus will be able to retain their

customers. So, lowering prices than the market price will not be a winningformula.

Price list of Competitors:

Products:

Lovely

wedding

Bor Koney Sanai Dulhan Palki

Sherwani 8000-30000 5000-15000 6000-35000 10000-40000 5000-25000

Pagri 1000-6000 500-3000 400-3500 700-5000 650-4500

Coat 5000-25000 3000-15000 3200-12000 4000-20000 3500-18000

Nagra 1000-8000 800-5000 500-4500 800-7000 600-5500

Punjabi 3000-15000 500-10000 800-12000 1500-15000 1000-13000

Sari 3500-40000 600-40000 1000-20000 2500-35000 2000-25000


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Lehenga 5000-35000 5000-25000 4500-15000 8000-30000 6000-20000

Scarva 1000-4000 800-1500 1000-4000 1200-4500 1000-3500

Shoe 1200-14000 900-4500 1000-6000 1500-12000 1200-8000

Perfume 800-10000 80-1000 150-1500 200-8000 150-5000

Rakhi 800-2500 80 100-500 150-1000 120-1000

Services:

Video and Sound system

Name Lovely wedding Advanced video

recording Centre

The New Lava

Video Centre

Prime Video

DV camera

recording

6000-15000 6000 6500 5800

Video camera

recording

6500-9000 6500 7000 6500

Editing 2600 2500 3000 2000

VHS to VCD 700 700 500 500

Projector 4200 2000 4000 2500

Still photography 1500 1000(per roll) 1500 1100


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Sound 3600 2000 3500 2500

Decoration:

Name Lovely wedding Advanced

Multimedia

Production

Malancha Katabon

Gate(Entrance) 5000-15000 4000 7000 5000

Car 5000-15000 3000 5000 4200

Stage 6000-12000 5500 8000 6000

Room 6000-10000 4500 7500 5000

Placement:


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The Lovely Wedding mall will be located at Elephant Road. It will locate very close

to the steers so it will be easily noticeable for the customers when they in the

market. Main reasons of locating our wedding mall at Elephant Road are:

Most of the customers know that all the wedding malls are located at

Elephant Road which is a very busy and congested area. For this reason we

have located our shop here where customer will get a nice, cool, fresh

environment for their shopping. Besides, there is a big car parking lot for the

car parking. As we have targeted upper middle and high classs people as our

targeted customers and most of theme have the car. So, we believe that our

customers will enjoy this facilities a great deal.

It is easily reachable from all corners of Dhaka city. Regular counter buses

are also use the panthopoth road so customers can also take the bus facility

as well.

In future, we have planed to open another store at Riffle Square because a lot

of people visit there everyday. Thus customers will get familiarized of our

store and habituated of preferring to come in our store because in this

occasion they will be able to do shopping in other products stores too.

Promotional Strategy:

We will do strong promotions so that the customers will be lured to come and buy

wedding accessories from our store.

We will advertise our store, products and services on Friday newspapers only

because most of the weddings are held on Fridays and most of the readers

eager to read newspapers on Fridays. We will advertise on Porothom Alo,

Janakantha and Daily Star only, including the Friday magazines of Janakantha

and Daily Star because most of the potential customers are assumed to read

those newspapers mostly.


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We will advertise on every publication of the best chosen magazines,

especially on those for females and fashion lovers, including Shanonda and

Anondo Alo.

We will post banners in front of all the community and party centers of Dhaka

and Narayanganj cities.

We will also post banners in front of all the universities including, Dhaka

University, Jahangirnagar University, BUET, Dhaka Medical College, Sir

Salimullah Medical College, North South University, AIUB, Brac University,

East West University, Stamford University, and more because universities

students normally play a big role in the marriage ceremony. If we can aware

of these students with our wedding mall probably they will have a positive

intention about our services. When they will involve with the shopping for any

marriage for their relatives we think they will favor our shop.

We will place a Bill Board at Farmgate initially because numerous people pass

this place and they will get to know about our store easily. It will be very

effective advertising. Besides, we will also use the some cable channels for

our advertising in a monthly payment basis with the cable operators. In the

beginning of our business we are not going any direct TV advertisement of

our shop because it will take huge money.

Bou Shajo contest will be held throughout the first 6 year of the starting of

our wedding mall. In this contest, all the customers who will buy minimum

Tk.10,000 worth of products from our store will be eligible for the contest.

Every 15 days all the eligible customers will be invited. The winner will be

chosen by a lottery draw among them. But this is not the end. The winner will

have to sit the whole day in the get of a bride in our store to be eligible for

the prize.

Because of the Bou Shajo contest, there will definitely be crowd of public in

front of our store, which will most likely attract reporters. Thus there will be

an easy media coverage and publicity. We will also advertise for the contest

in all the potential places possible. It will change the tradition and encourage

young people to come and shop for their wedding on their own.


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In the Bou Shajo contest, we will call for a partner sponsor djuice since they

are most likely to be one. Thus we will be able to higher the level of the prize

and get more publicity. The prize will be A free 3 days honeymoon in Coxs

Bazaar at a five star hotel including bus tickets.

We will give the price discount offer for our loyal customers from the

beginning of our business but the condition is that they have to buy 10,000tk

product from our store then they will get the 5% discount on this purchase.

Management Team

Here, in the business the manager will have the check signing authority. Sometimes

it is important to finance something instantly and in that situation, if manager do

not have the authority to sign the check it we might lose any chance to be

benefited!


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Management will be totally decentralized. For example, officer for the event

management will be free to take any decision required in a short time. And he/she

can command his/her substitute to have the best output. We are putting emphasis

on decentralized management system because if we maintain chain of command on

the organization then it would be time consuming and in a sense decision making

will be a lengthy process.

Backgrounds of the management employees:

Our management employees should be experienced and good communicator. As

our shop is about wedding and providing marital service, therefore, we need such

Manager

Service

DepartmentProduct

Department

Managing Officers

[Event]

DirectorsDirectors

Supplier

Site Officers

Supervisor

Employee

Accountant

PROCESS

DAT

A


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kind of people who can well communicate with the customers and make them to

buy our products and services. The officers who will work on site should be

experienced as well. We need experienced person here because to manage an

event is not an easy task and to have cost efficiency and to control any unexpected

situation, an experienced person is much better choice. An experienced person

does not mean that the employees must be educated. Any one who has deal withsuch event for long time can be eligible for the position.

Roles and `responsibilities:

Manager:

There will one manager in the firm, who will deal with all official and related issues

of the business. All kinds of official affairs will be reported to the manager.

Moreover, manager will possess the authority to change any procedure if he thinks

necessary, but in this case, decision of the directors is mandatory

Job Title: Manager

Available Positions: 1

Job description

After the four owners, he is the second most important and powerful position in the

shop. The main responsibility of this post is to carry out the policies issued by the

owners. He also oversees the present ongoing situation in the shop so that

everything goes towards shops prosperity.

Duties & Responsibilities

o Coordination and control all department.

o Always need to oversee the present ongoing situation in the shop

o Implements policies for the sound growth of shop.

o Maintain a sound environment in the factory through monitoring the people

o Resolve any critical issues related to HR or day to day operations

Accountant:


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Job position: Accountants

Reports to: Manager

Available Position: 1

Job Description:

Keeping record of the inventory, deal with the employees salary, financial support,

and other issues. The accountant will report to the manager about the financial

condition of the firm on a daily basis.

Duties and responsibilities:

Preparing the financial statement for the organization on each six months.

Recording inventory items, whether going out or in and how much is there on

the store etc.

Recording daily sales and income on daily basis.

Event Manager:

The duty of event manager will be managing all the issues related with our service

department. He will be responsible for the events management, like, managing

decoration, rent-a car, community hall, and managing the employees in charge at

site (event). In addition, the event manager will report to the manager for any kind

of help and

Job responsibility will be same like managers. But he/she need to be well on

managing site officers and report their activities to the manager.

Site officers:

These are the group of employee who will be posted on the event what we will

organize. Their duty will be managing the event from the site, monitoring the

assigned task and reporting the information to the event manager. The recruitment

of these people will be on contractual basis.

Product supervisor and sales man:


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Product supervisor will be in charge of managing the employees who will show the

products to the customer. He will be a supervisor as well as sales man, will get bit

higher salary and will report manager about the daily sales and which product are

sold.

Job Title: Sales man/woman

Reports to: Manager


Job description

Since our customers will be both male and female, and because of our culture,

there are many customers who normally do not feel comfortable to talk with an

opposite sex, so we will keep sales man and woman both.


o Sales the products

o Behave such a way with customers so that they feel comfortable to buy our

products.

Cleaner:

Job Title: Cleaner

Reports to: Manager


Job description

He/she will be responsible to keep the shop environment neat and clean



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.

o Clean and sweep the shop floor.

o Maintain a neat and clear environment in the shop

Clean the shop equipments

Security Guard:

Two security guards will be recruited on shifting basis on our shop. Their salary will

be decided according to the typical salary rate on the market.

Job Title: Security Guard

Reports to: Manager


Job description

He has the job of keeping the security system of the shop and helps the Factory

Manager to keep the shop secured.


.

o Handle any awkward situation.

o Ensure shop security.

o Examines doors, windows, and gates to determine that they are secure.

Payment policies:


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Salaries: All the employees except site officers will get monthly salary for their

regular job. Their salary plan will be decided by the normal salary rate of

Bangladesh. In addition, if any change on pay scale is required it would be decided

by the discussion between director board and employees. Beside this, the

employees will get a proportion of sales revenue if there are good profits in any

time.

Manager:

Others

o Yearly holy day 15 days without government declared holy day.

o Two bonuses per year

Sales men/women:

Basic allowance 4000

Travel Allowance( 10% of the basic salary) 400

Others

o Maternity Leave: This is one type of leave that is given to the female

workers (sales women) who are expecting. But this leave is given to the

female workers during the first two months of pregnancy and the last two

months. In the meantime, they will have to continue with their work.


o Two bonuses per year


Travel allowance (10% of the basic salary) 800

Mobile bill (5% of the basic salary) 400


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Security Guard:


Others


o Two bonuses per year.

New technologies:

Software:

To run the business, we need some database software to keep the record of

our employee and inventory section. It can be used to record any kinds of

data about storage items, to adjusting the entries at the end of the day and

to update any changes on the physical storage of the product.

For editing the photos we will use photo editing software like AdobePhotoshop. To operate this software we need specialized people on editing

sector. Thus, we have to train employee to keep pace with the recent update

on the photography world. By specializing employee we can also reduce our

hiring cost of employees to edit the picture.

Camera:

To keep our service attractive and bit qualitative we will use high qualitycameras for photography purpose on the wedding ceremony

We prefer Canon and Nikon SLR camera as our photography equipment. We

can be assured about the quality of the picture and the usage period

therefore, using these branded products will be less risky for us to deal with.


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Printer:

Not only camera we also need a good printer service to get the copies of thepicture. Thus, we are thinking to buy an Hp Laser jet printer. Hp is a well known

brand and quite popular in the market. To get the better picture we should have

one printer like this.

COMPUTER:

Computer is an essential element for any business. It is important for our business

as well. Why should we need computer on our business? The reasons are given

below:

In the computer we can store all kinds of important data. These data refers to

our employees and inventory. We can keep record through creating an

employee database.

At the finishing of the month we can calculate the financial data which can

manipulate our revenue and expenses. From that we know how much profit

we achieve and loss incurred as well.

We can keep the data of the existing customers. From the data of existing

customers we can identify the best seller zone and the group who mostly buy

our product.

Computer makes our daily life easier. We have our webpage and can sell

goods and can have virtual contracts of organizing parties out there on

internet.


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Financial Goals

The first step in financial planning is controlling the day-to-day financial affairs to enable to do

the things that bring the business success and satisfaction and enjoyment to the owners. This is

achieved by planning.

The second step in personal financial planning is choosing and following a course toward long-

term financial goals. As with anything else, without financial goals and specific plans for meeting

them, some businesses drift along and leave their future to chance. A wise man once said:

"most people don't plan to fail; they just fail to plan." The end result is the same: failure to reach

financial stability. The third step in personal financial planning, "Building a Financial Safety Net,"

Lovely Weddings financial goal is the same, that is to achieve financial stability and thats why

it is a must to prepare a plan. We five partners have equally invested BDT1,000,000 each to

make a total investment ofBDT 50,000,000 initially for the store. Well equally distribute any

profit among ourselves. But the main goal is to get the most of the investment as soon as

possible. That is, the payback period should be very short. The figures in the income statement

also have to be significant otherwise its not so profitable compared to other stores. The graph

has to go higher. We want to stabilize our business financially so that new competitors cannot

cope up with us by any means. Whenever there will be any problem, it could be solved instantly

without any hassle. And it is possible to get the payback period very short and also this market

segment is comparatively profitable.


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Pro Forma Income

Statement

Year 1 2 3

Revenues 100% 42500,000 63750,000 85,000,000

Cost of goods sold 60% 25,500,000 38,250,000 51,000,000

Gross Profit 40% 17,000,000 25,500,000 34,000,000

Variable Cost 9,643,750 22,500,000 30,500,000

Advertisement 2,000,000 2,500,000 3,000,000

Depreciation Fixed 500,000 500,000 500,000

Total Operating Expense 12,643,750 15,698,437.5 16,575,000

EBIT 4,356,250 9,801,562.5 17,425,000

Tax (2.5%) 2.5% 106,205 239,062.5 425,000

Net Income

1st yr-10%

2nd yr- 15%

3rd yr- 20% 4250,000 9,562,500 17,000,000

.


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Operating Cash Flow

01 02 03

EBIT 4356250 9801562.5 17425000

Depreciation 500,000 500,000 500,000

Taxes 106,205 239,062.5 425,000

Operating Cash Flow 3750,045 9062,500 16,500,000


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Pro Forma Balance Sheet

01 02 03

Assets

Current Assets

Cash 2000000 1500000 1800000

Inventory 5000000 4000000 2500000

Other Current Assets 0 0 0

Total Current Assets 7000,000 6500,000 4300,000

Long Term Assets

Long Term Assets 2650,000 8562500 18200,000

Accumulated Depreciation 500000 1000000 1500000

Total Assets 10,150,000 16,062,500 24,000,000

Liability and Capital 01 02 03

Current Liabilities

Accounts Payable 900,000 1500,000 2000,000

Current Borrowing 0 0 0

Other Current Liabilities 0 0 0

Subtotal Current Liabilities 0 0 0


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Long Term Liabilities 0 0 0

Total Liabilities 900,000 1500,000 2000,000

Paid-in Capital 0 0 0

Capital investment 5,000,000 5,000,000 5,000,000

Earnings 4250,000 9,562,500 17000,000

Total Capital 9250,000 14562500 22000000

Total Liabilities and

Capital

10150000 16062500 24000000

Income Statement

Income statement is a financial statement for companies that indicate how net

revenue (money received from the sale of products and services before expenses

are taken out, also known as the "top line") is transformed into net income (the

result after all revenues and expenses have been accounted for, also known as the

"bottom line"). The purpose of the income statement is to show managers andinvestors whether the company made or lost money during the period being

reported.

The income statement we have prepared for Lovely Wedding shows that its number

of bridal parties or customer groups has increased enormously in the 2nd year. This

is because of the extensive marketing activities. As a result the revenues have also

become very high along with other parts.

We have used straight line depreciation method for depreciating the value of the

fixed assets. Every five years well change our decoration and everything so well

need BDT 2,500,000 for equipment every five years and it is depreciated every

year by BDT 30,000. We have found out that the current corporate tax rate in

Bangladesh is 2.5% and we used it as our tax rate. In the first year of operation the

Net Income is BDT 4,250,000.

Operating Cash Flow


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The cash generated from the operations of a company, generally defined as

revenues less all operating expenses, but calculated through a series of

adjustments to net income. The OCF can be found on the statement of cash flows.

Also known as "cash flow provided by operations" or "cash flow from operating

activities.

One method of calculated OCF is:

Operating cash flow is the cash that a company generates through running its

business. It's arguably a better measure of a business's profits than earnings

because a company can show positive net earnings (on the income statement) and

still not be able to pay its debts. It's cash flow that pays the bills!

From the Excel spreadsheet we see that in the first year, cash flow from operating

activities was BDT 3750,045.

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

eent management

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