Business plan in BANALATA SWEETS

CHAPTER
CHAPTER

11

INTRODUCTORY
INTRODUCTORYPAGE
PAGE

BANALATA SWEETS
41/2, Pallabi Bus Stand,
Section-12, Mirpur, Dhaka-1216

C0-Owners:
1. Umme Salma

Address: Rampura Banasri, Dhaka

2. Utpal Sarker

Address: Dhanmondi Kolabagan, Dhaka

3. Md. Sayemuzzaman

Address: North Shahjahanpur, Dhaka

4. Abu Zafar

Address: Mirpur, Dhaka

Description of Business:
This business will produce and supply of sweet item, bakery, fast food, and home made food
item. The items will be sold in wholesale and retail basis on its own outlets. It will also supply
the food items in different social arrangement like marriage, milad, etc.

Financing:
Owners Capital:
Umme Salma

100,000 Taka

Utpal Sarkar

50,000 Taka

Md. Sayemuzzaman

50,000 Taka

Abu Zafar

50,000 Taka

Total =

250,000 Taka

Bank Loan:
Islami Bank, Mirpur Branch 300,000 Taka

CHAPTER
CHAPTER

22

ENVIRONMENTAL
ENVIRONMENTALAND
AND
INDUSTRY
INDUSTRYANALYSIS
ANALYSIS

2.1: Environmental Analysis

A business converts inputs into outputs in order to make a profit. However, our business
BANALATA SWEETS does not exist in a vacuum; it also exists within an external
environment consisting of the actions of other players who are outside the business. The main
external environment factors consist of:

Social It deals with how consumers, households and communities behave and their
beliefs. For instance, changes in attitude towards health, or a greater number of
pensioners in a population. In our country each occasion there is a special need of sweets.
It is a tradition of our culture that every occasion there is need of some traditional sweets,
like: bundia, kalojam, chomchom, rosogolla, etc.

Legal The BANALATA SWEETSwill mainly food (sweets) manufacturing firm so it

will be their duty to get registration from the BSTI. It also needed to get registered from
the Dhaka City Corporation for trade license. Tax Identification Number (TIN) to pay the
tax, vat and other duty to the respective authority.

Economic The economy affects the business in terms of taxation, government

spending, general demand, interest rates, exchange rates and other economic factors. For

BANALATA SWEETS these factors may not affect that much but the general demand
is very essential external factor.

Political Changes in government policy might affect the business e.g. a decision of
operating the business. Like in the political action like Hartal, Political Meeting, Political
action in different days will affect the business.

Technological BANALATA SWEETS will be semi automated firm, the procedures of

producing sweets will be strictly observed by the supervisor. For maintain the quality of
food items proper preservative action should be taken.

Ethical We, BANALATA SWEETS very much concerned about the hygienic factors
of our quality. The main concerning factor is to provide quality foods to get higher
customer satisfaction.

Competitors There are already some existing competitors in market, like: Ali Sweets,
Bonoful, Prince, etc. To compete with this type of old and popular sweets stores so, we
should make many things in concern, like: the location, customer profile, etc.

2.2: Industry Analysis:

Focus should be on task environment. For BANALATA SWEETS, our focus factors are:

Industry Demand: The demand for sweets is not fixed; rather in occasional program its
demand is significant. Like: S.S.C, H.S.C result date, Puja, Marriage ceremony etc.

Competition: Though a business does not want competition from other businesses,
inevitably most will face a degree of competition. The BANALATA SWEETS will not
in exception case. But our location of business may help it to achieve its target.

The BANALATA SWEETS could react to an increase in competition in future in the following
ways:

Cut prices: by adopting new technologies with time.

Improve quality: it may increases the cost but ultimately it may help to increase
customer satisfaction.

Spend more on promotion: may help to increase brand loyalty;

Cut costs: by using cheaper materials, make some workers redundant cost may be
reduced in future.

CHAPTER
CHAPTER

33

THE
THEDESCRIPTION
DESCRIPTIONOF
OFTHE
THE
VENTURE
VENTURE

The main mission is to established profitable and quality sweet manufacturing firm. We want to
establish sweet store which will be renowned for its quality and create a brand image. We have
already started our business from 2009. This firm will be successful in future because our aim is
attainable and our spirit is strong enough to achieve our goal. After deciding to start the sweet
business, four of us are finding a name for our shop. Umme Salma one of our partner suggest a
name that is BANALATA. She also gives the justification behind this name, she select this
name after the name of Banalata Sen of Nator. And the other reason behind it is that she wants to
gift something natural to the customer. This idea impresses us and immediately it is decided to go
for this name the BANALATA SWEETS.
We will try to produce each and every type of sweets. We are trying to produce all the
traditionally preferable sweets and also want to bring some sweets items from other place like:
Tangails Chomchom, Baguras Doi, etc to get customers higher satisfaction. Lalmohon,
kalojaam, roshogollah, shondesh, chomchom & yoghurt should be our main special sweets
which will be produced in our production house first. We offer Tangails Chomchom, Baguras
Doi because customers even now want the Doi made in Bagura, Chamcham made in Tangail
rather than made in here. So these sweets we try to bring here which may differentiate us from
our competitors. Again we have an idea to introduce special sweets for diabetic patients and we
are quite sure that it will help us to differentiate ourselves and providing the customers the real
taste and flavor.
We try to locate our business in Pallabi-Mirpur. We chose the place by considering some factors,
like: In Pallabi we have own land and building which will be easy for us to make a Sweet Store.
It is about one Bigha. Behind the main building their is a Pucca tin shed building which will be
use as factory or manufacturing unit of bakery and sweets.
The only community center named Appayon is situated near our located store, which is always
busy with different ceremonies; seminars etc. It may help us to increase our sales volume. Our
building is besides a market place which will also help in increasing our sales volume. And
5

another important factor behind choosing this location is that Mirpur is developing day by day.
Lots of housing societies and individual entrepreneurs are making multistoried buildings in
Pallabi areas. In Mirpur the development of the number of garments industries are significant.
So, we have a huge chance of attracting customers and gaining a brand name.
We are already found sufficient Karigar for our business. But it was a difficult task for us to
manage the Karigar. Later we were able to employ only 8 karigar for our shop. But with these
karigar they had 2 more helpers to support them.
We collect our initial capital by generates loan for the capital, from our savings amount and some
cash from one of our partners father which he invests for our business. In the way we will able
to accumulate 2.5 lakh taka as an initial invest. With this amount we will try to start our business
in the name of the Almighty.

CHAPTER
CHAPTER

44

THE
THEPRODUCTION
PRODUCTIONPLAN
PLAN

We will be involved in the whole producing process of our products. Means we will produce all
sorts of sweets which will be found in our in our stores except some items like the boguras doi,
tangailer chomchom from outside. We will make contract with some sweets stores in Bagura and
Tangail who will ensure us to supply pure doi and chomchom from their own production or
production units. We will be very careful about selecting these stores because our main target is
to provide high quality products which are our main goal. Our company is semi automated, so
there is need of some fixed machines. For the purchase of fixed machines we obviously focus on
the machines that will long lasting quality and have lower maintenance costs. The karigors
(worker) we chose for production of sweets are very skilled. In choosing the procurement
ingredients we also concern about the quality of the ingredients. The procurement ingredients for
our production are: milk, ghee, sugar, maoya, cheese, etc. Milk vitas factory is established in
Mirpur. So, it will be easy for us to collect some procurement ingredients from here, it will also
help us to reduce the transaction costs too. We will also fix contract with our suppliers about the
quality, quantity, prices of the procurement ingredients. Another most important objective of us is
that we have an idea for expanding our business in future from BANALATA SWEETS to
BANALATA SWEETS & BAKERIES, also a plan to make some branches of our stores in
some selected area of Dhaka city.

CHAPTER
CHAPTER

55

THE
THEMARKETING
MARKETINGPLAN
PLAN

5.1: Defining the business situation

We know that for analyzing market demand for first, it is very important to analyze the situation
and specify the objective of the project. It is very important to understand the current market
situation; the demand for Sweets is always same. Means in our country whatever the occasion it
is whether religious occasions, or ceremony parties, or any occasion sweet is must. The main
objective of BANALATA SWEETS is to provide high quality and hygienic sweets in local
market, because the people;e are now-a-days more concern about their health and nutrition. In
this Pallabi of Mirpur there are already exists some sweets stores but we want to provide better
products with various types of flavors to our local customers. Though the new product of us has
been received a new market challenge to cope with the existing companies. However, the
BANALATA SWEETS is quite confident about quality and own self.

5.2: Defining the Target market/Opportunities and Threats

Sweets are always favorable to all. So, its difficult for us to segment the market. We will
obviously ensure about the quality of our sweets and its variety of flavors. But we want to make
us differentiate ourselves by providing special diabetic sweets for diabetic patient specially. We
mainly go for geographical segmentation first, where our main target is the pallbis people of
Mirpur. We also projected an assumption of numeric figure that our local customers means the
people of pollobi are about 60% others come from outside the Pollobi about 40%. We can show
our target segment through the following pie chart:

Figure 1: Target Customer

BANALATA SWEETS is a new firm and it can take opportunity of easy to enter in market.
Means in this market it is easy to enter for any organization. Consumer income is increasingwhich may also work as our opportunities. Our country is on the rise in economy our consumer
income is increasing. And as a result of better income the consumers are willing to pay for
hygienic commodities. BANALATA SWEETS may have to face some threats in their business,
like: they may face the threat in term of capture the market because already there are some
existing popular sweet stores in Mirpur so; its a challenge to capture the market share.

5.3: Considering the Strength and Weakness

Strength: BANALATA SWEETS has several powerful strengths on which to build:

New Positioning: The BANALATA SWEETS position the products with the higher
quality and locally produced product.

Core Strength: Proving high quality product and also want to give some new flavor.

Image: We will try to build our image with our quality products gradually.
9

Location: We chose this location considering many factors

Weakness: BANALATA SWEETS has some major weaknesses:

Competitors: The major weakness of our firm is that there is already some existing
sweets stores some of them are also have some popularity.

Lack of brand awareness: BANALATA SWEETS is new in Pallabias well as in the

market. So, it has no brand or image in the market. Whereas our major competitors like
Muslim, Prince, Bonoful and all other major rivals have strong brand identification in the
market.

We also done the PEST analysis and find that there is not such thing that m,ay cause any threat or
weakness for us rather we get positive results which also influences to start the business as soon
as possible.

5.4: Developing Own Marketing Goals and Objectives

BANALATA SWEETSs marketing goal is to introduce us to the local and targeted people
about our quality and brand. To achieve the goal we also take some sorts of marketing strategies.
The main objectives are to gain the higher customer satisfaction with our high quality products
and the some sort of customer services like: for local people we will provide home delivery
services.
BANALATA SWEETSs positioning will be the product quality and its features to its
geographical segmented target customers. With its ability to provide hygienic high quality
sweets product, BANALATA SWEEETS can serve all these consumers and can achieve
satisfaction.
Mission:
BANALATA SWEEETS will produce high quality food items and will try to bring newer
tastes and flavor in its products maintaining the quality standard to gain customer satisfaction.
We also try to provide our products to our targeted customers with a reasonable price.

10

Non-financial objectives:
The non-financial objectives are: to cerate and maintain a very healthy growth of business with
desired image ensuring the quality first, will try to add a new taste and flavor of sweets, and to
ensure optimum utilization of all resources.
Financial Objective:
The main financial objective is to earn a strong profit base in the first few years because we
know that it can bear profit only for a short time but in the long run it will not work. Another
financial objective is to ensure an adequate return on investment, to obtain a return on investment
the first year and second year objective of the company.
Segmentation:
BANALATA SWEEETS segmented their consumers based on geographical segmentation,
with the consideration of behavioral factor like occasion, user status, and user rate.
Targeting the Market:
BANALATA SWEEETSs primarily target the all people of Pallabi and also other people
outside of Pallabi for which we make focus on the location in terms of choosing the business
place.
Positioning:
Using high quality and focusing on the location of it, we are positioning BANALATA
SWEEETS as the identical product. The marketing strategy will focus on the providing quality
food product as the main feature. We will also try to introduce some different taste and feature to
our products.

11

5.5: Defining Marketing Strategy and Acton Plan

Our marketing-mix strategy is based on superior performance in the following areas:

Product quality

Consumers preference

Geographical Segmented Area

Our marketing strategy will create awareness, interest, and appeal from our target market for
what New-Born offers our customers.
BANALATA SWEEETS marketing mix strategy comprised of these approaches to product
strategy, customer services, pricing strategy, placing strategy, and promotional or distributional
strategy.
Product Strategy:
People are more conscious about food day to day because it is directly related with the health and
another reason behind it that the income of the people are increasing with our economy. Here our
prime focused segment is the Pallabis people. The BANALATA SWEEETS focuses in to
introduce high quality sweets with various tastes and flavor and also willing to introduce new
special sweets for the Diabetic patient. Our company mainly wants to establish this
BANALATA SWEEETS as specialty product (Consumer Food Product).We will also want to
follow the organizational marketing strategy and some other marketing strategy. We also expand
our business in bakeries in future. To support our products position in the target market segment,
our product will provide the higher performance quality to our targeted consumers. Our company
will strive for high level of conformance quality. The brand name is BANALATA SWEEETS
a new brand in the market and we tried to follow the strategy to select this brand name. The
BANALATA SWEEETS will provide all sorts of sweets items to gain the higher customer
satisfaction, like- rajvog, kalojam, doi, rosmalai, shondesh, lalmohon, rosogolla, chomchom,
bundia, laddu, and many more various types of sweets to attract the targeted consumers. We will
try to ensure the customer about the products name, brand name, its content, about its quality,
and how hygienic the products are, where it is made, etc. We also give the opportunity to the

12

customers to taste before buy which will obviously help us to make a special place in the
customers mind.
Customer Services:
Customer service is known as the word of mouth. For our company BANALATA SWEEETS
meeting the customer needs and creating loyalty is the primary goals. If the customer services are
poor than the customers may chose to buy from our competitors and reality is that we have to
face a high competition in market. We also have some plan to take some necessary steps to gain
high customer satisfaction.
-

We will try to provide the home delivery services to the local customers, which
will obviously differentiate us from the other competitors.

We will give the option to the customers to taste the sweets before giving
purchase decision.

The employees performance in term of their behavior with the customers, etc.

Pricing Strategy:
The BANALATA SWEEETS pricing strategy will be Our company will give comparative
benefit to our customer by pricing strategy. Price will be reasonable for the market. Our pricing
objectives will be market share leadership. We will use market-penetration pricing. But, later we
will also price-adjustment strategies like- set the price based on the reasonability towards the
customers and its quality, promotional pricing etc. Our initial pricing will be quality based
pricing. The BANALATA SWEEETS use the market-skimming pricing strategy to set price.
Placing Strategy (Distribution Strategy):
The BANALATA SWEEETS will be located in Pallabi-Mirpur. We chose the place by
considering some factors, like: In Pallabi we have own land and building which will be easy for
us to make a Sweet Store. It is about one Bigha. Behind the main building their is a Pucca tin
shed building which will be use as factory or manufacturing unit of bakery and sweets. The only
community center named Appayon is situated near our located store, which is always busy
with different ceremonies; seminars etc. It may help us to increase our sales volume. Our
13

building is besides a market place which will also help in increasing our sales volume. And
another important factor behind choosing this location is that Mirpur is developing day by day.
Lots of housing societies and individual entrepreneurs are making multistoried buildings in
Pallabi areas. In Mirpur the development of the number of garments industries are significant.
So, we have a huge chance of attracting customers and also can build a brand image in market.
Promotional Strategy:
The BANALATA SWEEETS wants to promote both customers and retailers by promotional
offerings. For customers we will offer

Home delivery services

Allow the customers to taste before purchase

Give facilities to the customers to taste our sweets and know about the quality, for first few
days.

Action Plan:
BANALATA SWEEETS is a new brand of sweets manufacturing company will be introduced
in the middle of this year. We like to introduce an action plan for next six months. We hope that
if the first six months action programs will run well, then we will achieve our objective quickly.
Within these months our main concern is to attain our break even point. We are very concern
about our new product, like product quality, customers acceptability, comparative advantages
etc. We also go for some sort of promotional activities to the consumers by offering them to taste
our sweets in the store which will be free, this will be done not more than 1 week. This offer will
be given just for introducing our sweet to the local people and make them aware about our
products quality and taste.

5.6: Coordinating the Planning Process

As a new business, we must coordinate our planning process with implementation. We will make
continuous feedback and review from our customers. Our plan should be made on the basis of
our marketing goals and objectives. We should take corrective action to close the gaps between

14

its goals and its performance. This may require changing the action programs or even changing
the goals. We have the plan to observe the quality and customer service satisfaction closely. The
monitoring will helps us in quick response in correcting any problems that may occur. We are
also contriving to monitor any deviation from our plan including monthly sales and monthly
expenses.

5.7: Designing the Responsibilities

The plan must be implemented effectively in order to meet all the desired goals and objectives.
The responsibilities must be divided perfectly otherwise it may arise that the chain of command
may hamper. So its necessary to have a unity of command in the company. One of our partners
will directly supervise the manufacturing activities. The karigors of manufacturing unit are
bound to take responsibility from him. Another partner will sit on store and will serve or deal the
customer directly. Our company follows the most common form of marketing organization the
Functional Organization, where different marketing activities are headed by a Functional
specialist.

5.8: Budgeting the Marketing Strategy

This section will offer a financial overview of BANALATA SWEEETS as it relates to our
marketing activities. We will address Budget information in details.
We will decorate our outlet to attract customers, which will cost 175,000 taka. We will set up a
digital signboard in front of our outlet which will cost 12,000 taka. In promoting our new food
item we will introduce special discount on this item for the 1 month, which we will subsidize
around Taka 20,000.

5.9: Implementation
In our marketing implementation process, our marketing strategies and plans will turns into
marketing actions in order to accomplish strategic marketing objectives. Though in this market
there is huge competition but we have our own strategy to face it. Because our strategy is not to
make profit or to expand our business rather capture the targeted market through our quality
products and better customer services.

15

5.10: Monitoring Progress

After Implementation its necessary to monitor that whether the business is on right tract to
obtain the established goals or not. We also take the following steps in consideration which will
help us to keep on track our company. If we fail in any of these areas, we will need to re-evaluate
our business model:

Gross margin at above 45%.

Do not depend on the credit line to meet cash requirements.

Month-to-month annual comparisons indicate an increase of 45%.(as to

achieve the first mover advantages)

16

CHAPTER
CHAPTER

66

THE
THEORGANIZATIONAL
ORGANIZATIONALPLAN
PLAN

This organizational plan helps to describe the ventures form of ownership. The BANALATA
SWEETS is a partnership firm. We are four founder of this BANALATA SWEETS. We all are
equally responsible for the liability of BANALATA SWEETS. For starting this business we
have to face some costs. Any of our partners can transfer his interest only consent of all other
partners. All of us (partners) have equal control in the business though our responsibilities and
authorities may be divided according to our consent. We decided not to take any profit for first
three to four months after that it will be divided or provided according to our consent. For the
first months we are more concern about our businesss primary goal which is to introduce our
BANALATA SWEETS to general people and build our image to in people mind. The
organizational chart of BANALATA SWEETS is given bellow:

Banalata
Sweets

Sayem

Utpal & Salma

Abu Zafar

(Accounts)

(Supply and
Maintanence)

(Production)

2 Assistant

8 Karigor

17

Figure 2: Organizational Chart

CHAPTER
CHAPTER

77

ASSESSMENT
ASSESSMENTOF
OFRISK
RISK

As we know when we are able to consider probability or assumption with events, we can
consider it as risk or risky criteria and when we cannot add assumption then it is considered as
uncertainty. So it is a very important issue for businesses to eliminate uncertainty through
assumptions. Now, as a consequence BANALATA SWEETS is also trying to convert their risk
into return. There are three ways that need to be considered and those are:
Risky Elements or Factors:
BANALATA SWEETS, today is dominating in Mirpur-Pallabi area, as consequences
competitors are finding it lucrative business. If we define risky factors then that could be fierce
competition among Musilim Sweets, Banaful, Alauddin etc. And another important issue could
be fluctuation of ingredient prices though it will be applicable for all participants but question
will be arose who will dominate?
Consequences of Risky Events:
As we know, impact of risk is very much harmful for any business but the nature of the risk will
not affect every business equally. The possible consequences for BANALATA SWEETS is

Reduce customer (as increase quality competitors or price fluctuation or lack of

differentiation)
Reduction in sales
Lowering goodwill (as if there is any adulteration willingly or unwillingly/ quality

measurement)
Wind-up (due to personal reason or forcefully due to fierce competition)

18

Prevention Policy:
BANALATA SWEETS should concentrate on following issues;

Provide variation in products

Set optimum price to be superior in the market
Make physical outlet in other areas (as the business grow bigger for diversification)
Maintain quality (as ensured as before)
Find best Sweets concept from best area (will add value)
Keep active workers motivated (as the secret recipe will be hidden for others)
Always concentrate on demand issues (to reduce wastage)
If possible, provide special offers during peak seasons (like; eid, bangle new year,
SSC/HSC resultetc.)

All above issues are prime guidelines for BANALATA SWEETS to always be the superior
among the sweet business.

19

CHAPTER
CHAPTER

88

THE
THEFINANCIAL
FINANCIALPLAN
PLAN

In preparing financial plan we have to forecasted the following financial statements1. Production Budget
2. Forecasted Income Statement
3. Forecasted Cash Flow
4. Forecasted Balance Sheet
The details plan is given below-

20

Production Budget

2009
(In Kilograms)
Projected Sales
Add: Ending
Inventory
Available for Sale
Less: Beginning
Inventory

Jan Feb Mar Apr

.
.
.
.
300 250 280 270

Ma
y
290

Jun
.
300

305

257

284

276

293

302

Jul
.
31
0
8

Aug
.
300

Se
p.
280

Oct Nov
.
.
270 290

Dec
.
320

31
8
2

306

285

274

297

325

Tot
al
346
0
62
352
2
57

2010

201
1

3500

3600

70

80

3570

3680

60

70

21

Total Production
Required

305

252

277

272

287

299

31
6

298

279

269

293

318

346
5

3510

3610

Forecasted Income Statement

January
Sales

80,000

Februa
ry
60,000

Less: Cost
of Goods
Sold
Gross Profit

24,000

18,000

56,000

42,000

Marc
h
75,00
0
22,50
0

April

May

2009
June

70,00
0
21,00
0

78,00
0
23,40
0

84,00
0
25,20
0

52,5
00

49,0
00

54,6
00

58,8
00

2010
July

Sep.

Oct.

Nov,

Dec.

Total

90,00
0
27,00
0

Augu
st
85,00
0
25,50
0

78,00
0
23,40
0

74,00
0
22,20
0

81,00
0
24,30
0

94,000

949,000

28,200

284,700

63,0
00

59,50
0

54,6
00

51,8
00

56,7
00

65,80
0

664,30
0

22

950,00
0
285,00
0
665,0
00

Operating
Expenses:
Selling
Expenses
Salaries and
wages
Rent

2,400

1,800

2,250

2,100

2,340

2,520

2,700

2,550

2,340

2,220

2,430

2,820

28,470

28,500

20,000

20,000

6,000

20,00
0
10,00
0
9,000

20,00
0
10,00
0
8,500

20,00
0
10,00
0
7,800

20,00
0
10,00
0
7,400

20,00
0
10,00
0
8,100

120,000

8,000

20,00
0
10,00
0
8,400

10,000

Utilities

20,00
0
10,00
0
7,800

240,000

10,000

20,00
0
10,00
0
7,000

20,000

10,000

20,00
0
10,00
0
7,500

9,400

94,900

240,00
0
120,00
0
95,000

Interest

10,000

10,000

10,00
0
3,900

10,00
0
4,200

10,00
0
4,500

10,00
0
4,250

10,00
0
3,900

10,00
0
3,700

10,00
0
4,050

120,000

3,000

10,00
0
3,500

10,000

4,000

10,00
0
3,750

4,700

47,450

54,400

50,800

53,50
0

52,60
0

54,04
0

55,12
0

56,20
0

55,30
0

54,04
0

53,32
0

54,58
0

56,920

650,820

651,00
0

1,600

-8,800

1,00
0

3,60
0

560

3,68
0

6,80
0

4,200

560

1,52
0

2,12
0

8,880

13,480

14,00
0

Miscellaneo
us
Total
Operating
Expenses
Net profit

In forecasting the items in income statements, cost of goods sold is 30% of sales. Selling expense is 3% of sales. Utilities expense is
10% of sales. Miscellaneous expense is 5% of sales.

23

120,00
0
47,500

Forecasted Cash Flow

Janua
ry

Febru
ary

Marc
h

April

May

2009
June
July

Aug.

Sep.

Oct.

Nov.

Dec.

Total

76000

57000

7125
0

6650
0

7410
0

7980
0

8550
0

8075
0

7410
0

7030
0

7695
0

8930
0

10000
0

10000
0

5000
0

19200

14400

1600

1200

1800
0
1500

1680
0
1400

1872
0
1560

2016
0
1680

2160
0
1800

2040
0
1700

1872
0
1560

1776
0
1480

20000

20000

Rent

10000

10000

Utilities

7600

5700

2000
0
1000
0
7125

2000
0
1000
0
6650

2000
0
1000
0
7410

2000
0
1000
0
7980

2000
0
1000
0
8550

2000
0
1000
0
8075

2000
0
1000
0
7410

Interest

10000

10000

Miscellaneo
us
Total
Disburseme
nt
Cash Flow

3800

2850

1000
0
3563

1000
0
3325

1000
0
3705

1000
0
3990

1000
0
4275

1000
0
4038

17220
0

16415
0

1201
88

6817
5

7139
5

7381
0

7622
5

96200

2705

5990

55000
0
45380
0

4893
8
3466
50
2977
13

-1675

Beginning
Balance
Ending
Balance

10715
0
45380
0
34665
0

2977
13
2960
38

2960
38
2987
43

2987
43
3047
33

Receipt
Sales
Disburseme
nt
Furniture
and
Equipment
Cost of
Goods Sold
Packing
Materials
Salaries

2010

2011

90155
0

9025
00

9310
00

25000
0

5000
0

5000
0

1944
0
1620

2256
0
1880

22776
0
18980

2000
0
1000
0
7030

2000
0
1000
0
7695

2000
0
1000
0
8930

24000
0
12000
0
90155

1000
0
3705

1000
0
3515

1000
0
3848

1000
0
4465

12000
0
45078

7421
3

7139
5

6978
5

7260
3

7783
5

11119
73

2280
00
1900
0
2400
00
1200
00
9025
0
1200
00
4512
5
9123
75

2352
00
1960
0
2400
00
1200
00
9310
0
1200
00
4655
0
9244
50

9275

6538

2705

515

4348

1146
5

-9875

6550

3047
33
3140
08

3140
08
3205
45

3205
45
3232
50

3232
50
3237
65

3237
65
3281
13

3281
13
3395
78

21042
3
55000
0
33957
8

3395
78
3297
03

3297
03
3362
53

24

In forecasting cash flow statement, we assume that 95% of sales will be in cash. Furniture and equipment will be purchased for the
following 3 months. Cost of goods sold will be 80% on sales. Packing materials will be 2% of sales in cash. Utilities expense will be
10% of Sales receipts. And miscellaneous expense will be 5% of Sales receipts.

25

Balance Sheet
2009

2010

2011

339,578

329,703

336,253

Accounts Receivables

47,450

47,500

49,000

Inventory

10,965

26,172

40,597

397,993

403,375

425,850

250,000

300,000

350,000

Less: Depreciation

25,000

30,000

35,000

Total Fixed Assets

225,000

270,000

315,000

Total Assets

622,993

673,375

740,850

59,513

59,375

61,250

Bank loan

300,000

350,000

400,000

Total Liabilities

359,513

409,375

461,250

100,000

100,000

100,000

Md. Sayemuzzaman

50,000

50,000

50,000

Umme Salma

50,000

50,000

50,000

250,000

250,000

250,000

13,480

14,000

29,600

622,993

673,375

740,850

Assets
Current Assets
Cash

Total Current Assets

Fixed Assets
Furniture and Equipment

Liabilities and Owner's Equity

Account's Payable

Owner's Equity
Utpal Sarker

Total Equity
Net Profit
Total Liabilities and Equity

CHAPTER
CHAPTER

99

LIMITATIONS
LIMITATIONSOF
OFBANALATA
BANALATA
SWEETS
SWEETS

26

Problems Associated with Entrepreneur:

The partners of BANALATA SWEETS faced some problems when they starts-up their business
like1. Difficult to arrange finance: It was difficult for them to take bank loan or to manage
other sources of large fund.
2. Long hour and hard work: Initially they had to do lots of work because they were
involved for the very first time with such type of business. So, that it was needed long
hour and hard work to carry out the activities.
3. Higher level of stress: This business is full of high level of stress, so that always they
had to feel pressure to overcome it.
4. Complete responsibility: They were new with such types of business so, they had to
face high risk with high responsibility.
5. Existing Competitors were a big threat: It was a big challenge for BANALATA
SWEETS to compete with the existing competitors in market. The parents have to be
very concern to choosing the strategies for the business.

CHAPTER
CHAPTER

10
10

THE
THERECOMMENDATION
RECOMMENDATION

27

After preparing the business plan some points are found which the entrepreneur could made in
concern which will definitely help them a lot. To obtain the goals and objectives of the
BANALATA SWEETS more efficiently and quickly these points could help a lot:
The members did not prepare the written business plan. But in reality the written business
plan might work as a guideline for the members, and it would also help them in taking the
strategies that obviously help to their business.
The members do not preserve the documents of their business, which might cause legal
problems and also could create the members conflict of interest.
They did not prepare written forecasted financial statements. For this reasons their
projection is not matched fully with the actual cash inflows-outflows, operational
expenses, assets and liabilities, gross profit/losses, net profit/loss, main part the Sales.
They (Partners) were not concern about the proper accounting system. For this reason
they have to face some problems in calculating the costs that occurred before production.
The members are busy with several activities, for that reason they could not give proper
time in preparing business plan before establishing the business.
The partners were made their main focus on profit. Because they dont have any idea
about that BANALATA SWEETS can bear profit only for a short time but in the long
run it will not work.
They did not forecasted about the demand of their products by following the demand
factors. So, first they have to face problem of mismatched in the actual demand and their
projection.
They plan for introduce special sweets for the diabetic patient but which can not be
fulfilled in reality.
There is a mismatch in the projection about the raw materials that are needed in actual
manufacturing process.

28