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IIUC Tower, 13th

Floor, 1700/A, Sk.


Mujib Road,
Agrabad,
Chittagong4100, Bangladesh

p. +880 31
717437
f. +880 31
718186

info@flashnet.co
m
www.flashnet.co
m

FlashNet Online
Ltd.

Executive Summary
FlashNet Online Ltd. Online Ltd. provides broadband Internet connections to several Chittagong
neighborhoods. Utilizing WDM technology and proprietary antennas and repeaters, FlashNet
Online Ltd. Online Ltd. will be able to serve a large area with broadband Internet connections.
The market for broadband Internet connections is wide open. Demand for traditional broadband
connections is surpassing conservative forecasts. The market is even more exciting due to the
significantly lower costs needed in terms of delivery infrastructure. As FlashNet Online Ltd.
Online Ltd.' customer base grows, costs decrease through scales of economy, creating an even
more compelling argument for FlashNet Online Ltd. Online Ltd.' existence.
FlashNet Online Ltd. Online Ltd. has targeted three distinct groups. The first is Home, a market
segment that uses the Internet the most and also have high expectations regarding the speed of
the connection. The second group is Office, people with disposable income, not a lot of
excessive time on their hands, and a group that uses the Internet a fair amount, both personally as
well as professionally. The last group that will be targeted is techies. This group is the early
adopters of any type of technology and spend incredible amounts of time immersed in Internet
technology.
FlashNet Online Ltd. Online Ltd. is a compelling business concept that leverages advances in
technology and proprietary tools to offer a market need at below market prices. In addition to
earning great margins with low infrastructure costs, margins increase as the customer base
increases. This exciting business plan has a high likelihood of success. The business will
earn modest profits in year two, increasing exponentially in year three. Net profit is forecasted to
be commensurate in years two and three.

FLASHNET ONLINE LTD. -

Highlights
BDT 2,500,000.00

BDT 2,000,000.00

BDT 1,500,000.00

BDT 1,000,000.00

BDT 500,000.00

BDT 0.00

Year 1

Year 2

Year 3

(BDT 500,000.00)

(BDT 1,000,000.00)
Sales

Expense

Net Profit

Mission
Committed to provide quality internet services by implementing next generation
technologies with the strongest network coverage & innovative team for ultimate
customer satisfaction.

Vision
The internet is one of the most liberating, exciting features of life in the 21st century. Whatever
youre into music, news, views, video, information, chat, and contact, research, for business,
pleasure or education we think you should be able to enjoy uninterrupted access to it, wherever
you are, whenever you want.

FLASHNET ONLINE LTD. -

Objectives
Provide, fast, reliable, wireless Internet access.
Treat customers with the upmost respect.
Become profitable within two years

Keys to Success
Practice disciplined growth.
Reach profitability by year two.
Ensure that the customer's needs are met and maintain a 90% customer retention ratio.

Industry Analysis
The annual earnings from broadband internet penetration in Bangladesh is expected to reach Tk.
128 billion by 2020 if the country ensures a rule-based policy regime.
Bangladesh's internet penetration rate may grow to 32 percent at household level and 66 percent
at business level by 2020 from the existing average of four percent, according to the study
conducted by Boston Consulting Group USA.
GSM (Global System of Mobile Communication) Association safeguards the interest of the
mobile communications industry globally. The association unites around 800 mobile operators
from 219 countries.
Bangladesh has a bigger chance than any other countries to use its 3G (third generation)
spectrum for broadband rollout.
Spectrum cost should be nominal to ensure the affordability of broadband services.
1.3 billion fixed phones now cover 19.4 percent of the world's total population, while 4.3 billion
mobile lines link 64 percent. GSM operators cover 80 percent of the total mobile subscribers.
A 10 percentage-point increase in internet penetration leads to 1-1.25 percent leap in GDP (gross
domestic product), 3-10 percent jump in production, one percent in new business, 2 percent in
FDI (foreign direct investment) and 8-9 percent increase in government revenues.

FLASHNET ONLINE LTD. -

In Bangladesh, 48 percent urban people are aware of internet services, while 29 percent of the
rural population have heard about the service..
Bangladesh will have around 20 million internet subscribers by 2020 if proper policy support is
provided, and 90 percent of the users will be added through wireless connections.
The study was part of an in-depth research into the adoption rate of internet and its impact in the
emerging economies with special focus on Bangladesh, Thailand and Serbia.
Currently around five million people in Bangladesh enjoy internet services offered by both
mobile and fixed internet service providers.

Description of Business
FlashNet Online Ltd. Online Ltd. will be formed in 2015 to offer an inexpensive broadband
Internet connection to compete with DSL or cable offerings. Using WDM technology, it is
inexpensive to set up a neighborhood network. The company was founded by S.M. Rasel along
with Shahinur Rashid, Shafiqur Rahman and Shakila Akter Shipu. We will rely on outside
investors for the necessary start-up costs.

Company Ownership/Legal Entity


FlashNet Online Ltd. Online Ltd. is a partnership business. The name of partners are S.M. Rasel,
Shahinur Rashid, Shafiqur Rahman and Shakila Akter Shipu
FlashNet Online Ltd. Online Ltd. - a registered trade name - is a Licensed ISP & IPTSP by
Bangladesh Telecommunication Regulatory Commission providing Internet, Internet Telephony
and many other IT related services and solutions.

Location
The corporate office of FlashNet Online Ltd. Online Ltd. located at IIUC Tower, 13th Floor,
1700/A, Sk. Mujib Road, Agrabad, Chittagong, Bangladesh. Our primary objective to cover
Agrabad area.

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Interior
FlashNet Online Ltd. Online Ltd. will provide fiber optic networks using latest WDM
technology in Chittagong. We will have 25 POP stations in Chittagong Metropolitan Area that
enable to connect user easily with low cost investment, Where Core fiber Network is fully
Redundant. We will also have wireless backup backbone in case of physical connection of both
trunk has been disconnected. It will connection oriented routing protocol and connectionless
oriented routing protocol. To more security in user LAN we would provide different subnet and
VLAN facilities each and every users LAN.

Hours of Operation
Our Corporate office will start from 8 am and will be close at 9 pm every day except Sunday.

Products and Services


We will provides ours main product PC Based Broadband by ensuring a minimum guaranteed
bandwidth which makes the package awesome. By using this package users can enjoy the
minimum guaranteed bandwidth (which is a feature of dedicated bandwidth) as well as burst able
bandwidth also. By using fiber optic or wireless radios between the state-of-the-art POPs and the
gateway/router that connects customers LAN, COL establishing the connectivity.
Facilities all the way:

Committed Help desk, Support & Customer Relation Tea

24/7 technical support

Continuous monitoring and SMS service

Primary connectivity through BTCL bandwidth with backup bandwidth from Mango Tele
Services

Massive fiber redundancy each and every POP if both are fails the Wireless back up will
active

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Data and mail security according to users demand

Dedicated Infrastructure team for instant link renovation

Stand by generator and personnel at important POP

Stand by vehicle with generator to recover the backup power failure at COL POP

Maintaining Quality of Service (Qos) -client demand, and customized

Management
S. M. Rasel, founder and president will be the anchor of the management team. S. M. Rasel
received his undergraduate degree in BBA from Bangladesh University of Business and
Technology (BUBT). While he enjoyed the course work he recognized that it was not something
that he was interested in pursuing as a career. He decided that it would be in his best interest to
study for an MBA, however, he was not immediately ready to do this.
He began the MBA program at Chittagong University. His course of study concentrated on
entrepreneurial ventures, recognizing at some point his desire to start his own business. Near the
end of his second year, He began to hear about WDM technology. He became interested in what
he saw was a strong market need for inexpensive broadband Internet connections transmitted
wirelessly, thereby significantly decreasing delivery costs. Rasel formed FlashNet Online Ltd.
Online Ltd. to fulfill this market need.
The management team consists of other three key people. See the table

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S.M.RASEL
Founder
President

SHAHINUR
RASHID

Operational
Manager

SHAKILA
SHAFIQUR
AKTER
RAHMAN
SHIPU
Financial
Marketing
Manager

Manager

Operations Strategy
Dimension
Capacity

Strategy
Growth as needed through additional place - but capacity added
carefully

Facilities

Distributed facilities, each facility being very similar to the next, all
focused around the same package - although the uniformity is

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beginning to change
Process

High degree of process understanding, emphasis on "fool-proof"

Technology

processes
A leader in the technology of ISP.

Vertical

Long-term relationship with customers to promote innovation and

Integration

quality improvement

Workforce

Operators: high-turnover, cheap

Financial Management
START-UP FUNDING
Start-up Expenses to Fund

Tk. 95,000

Start-up Assets to Fund

Tk. 10,05,000

TOTAL FUNDING REQUIRED

TK. 11,00,000

Assets
Non-cash Assets from Start-up
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Tk. 50,000

Cash Requirements from Start-up

Tk. 9,94,500

Cash Balance on Starting Date

Tk. 55,500

TOTAL ASSETS

TK. 11,00,000

Liabilities and Capital


Liabilities
Current Borrowing

Tk. 0

Long-term Liabilities

Tk. 0

Accounts Payable (Outstanding Bills)

Tk. 0

TOTAL LIABILITIES

TK. 0

Capital
Planned Investment
Investor 1

Tk. 5,50,000

Investor 2

Tk. 5,50,000

TOTAL PLANNED INVESTMENT

TK. 11,00,000

Loss at Start-up (Start-up Expenses)

(Tk. 95,000)

TOTAL CAPITAL

TK. 10,05,000

TOTAL CAPITAL AND LIABILITIES

TK. 11,00,000

Total Funding

Tk. 11,00,000

Start-up Expenses
Legal

Tk. 10,00,000

Stationery etc.

Tk. 10,000

Consultants

Tk. 5,000

Insurance

Tk. 30,000

Rent

Tk. 24,000

Research and Development

Tk. 5,000

Expensed Equipment

Tk. 5,000

TOTAL START-UP EXPENSES

TK. 10,79,000

Start-up Assets
Cash Required

Tk. 9,00,000

Long-term Assets

Tk. 2,00,000

TOTAL ASSETS

TK. 11,00,000

Total Requirements

Tk. 11,00,000

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Start-Up Summary

Start-up s ummery
BDT 1,100,000.00
BDT 1,100,000.00

BDT 1,100,000.00
BDT 1,095,000.00
BDT 1,090,000.00
BDT 1,085,000.00
BDT 1,080,000.00

BDT 1,079,000.00

BDT 1,075,000.00
BDT 1,070,000.00
BDT 1,065,000.00
A sset

In ve s t m e n t

Loan

Ex p e n s e

Profit and Loss Account


PROJECTED PROFITAND LOSS
YEAR 1

YEAR 2

YEAR 3

Sales

Tk. 5,65,840

Tk. 15,26,650

Tk. 23,14,430

Direct Cost of Sales

Tk. 18,290

Tk. 66,330

Tk. 1,05,720

Other Costs of Sales

Tk. 0

Tk. 0

Tk. 0

TOTAL COST OF SALES

TK. 18,290

TK. 66,330

TK. 105,720

Gross Margin

Tk. 5,47,550

Tk. 14,60,320

Tk. 22,08,710

Gross Margin %

95.00%

95.00%

95.00%

Tk. 7,88,000

Tk. 9,56,000

Tk. 10,76,000

Tk. 56,000

Tk. 1,20,000

Expenses
Payroll
Sales

and

Marketing

and

Other Tk. 24,000

Expenses
Depreciation

Tk. 9,960

Tk. 10,020

Tk. 10,020

Rent

Tk. 24,000

Tk. 24,000

Tk. 24,000

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Utilities

Tk. 96,000

Tk. 1,30,000

Tk. 1,50,000

Insurance

Tk. 30,000

Tk. 30,000

Tk. 30,000

Payroll Taxes

Tk. 88,200

Tk. 1,13,400

Tk. 1,31,400

Other

Tk. 60,000

Tk. 60,000

Tk. 60,000

Total Operating Expenses

Tk. 9,20,160

Tk. 11,79,420

Tk. 14,01,420

Profit Before Interest and Taxes

(Tk. 5,72,610)

Tk. 80,900

Tk. 6,07,290

EBDIT

(Tk. 5,62,650)

Tk. 90,920

Tk. 6,17,310

Interest Expense

Tk. 0

Tk. 0

Tk. 0

Taxes Incurred

Tk. 0

Tk. 24,270

Tk. 1,82,190

Net Profit

(Tk. 5,72,610)

Tk. 56,630

Tk. 4,25,100

Net Profit/Sales

-156.52%

4.27%

20.10%

YEAR 1

YEAR 2

YEAR 3

Cash

Tk. 2,21,720

Tk. 3,00,420

Tk. 7,60,140

Other Current Assets

Tk. 0

Tk. 0

Tk. 0

TOTAL CURRENT ASSETS

TK. 2,21,720

TK. 3,00,420

TK. 7,60,140

Long-term Assets

Tk. 50,000

Tk. 50,000

Tk. 50,000

Accumulated Depreciation

Tk. 9,960

Tk. 19,980

Tk. 30,000

TOTAL LONG-TERM ASSETS

TK. 1,40,040

TK. 1,30,020

TK. 1,20,000

TOTAL ASSETS

TK. 3,61,760

TK. 4,30,440

TK. 8,80,140

Liabilities and Capital

Year 1

Year 2

Year 3

Accounts Payable

Tk. 1,29,380

Tk. 1,41,420

Tk. 1,66,030

Current Borrowing

Tk. 1,00,000

Tk. 1,00,000

Tk. 1,00,000

Other Current Liabilities

Tk. 0

Tk. 0

Tk. 0

SUBTOTAL CURRENT LIABILITIES

TK. 29,380

TK. 41,420

TK. 66,030

Long-term Liabilities

Tk. 1,00,000

Tk. 1,00,000

Tk. 1,00,000

Balance Sheet
PROJECTED BALANCE SHEET
Assets
Current Assets

Long-term Assets

Current Liabilities

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TOTAL LIABILITIES

TK. 3,29,380

TK. 3,41,420

TK. 3,66,030

Paid-in Capital

Tk. 7,00,000

Tk. 7,00,000

Tk. 7,00,000

Retained Earnings

(Tk. 95,000)

(Tk. 6,67,610)

(Tk. 6,10,980)

Earnings

(Tk. 5,72,610)

Tk. 56,630

Tk. 4,25,100

TOTAL CAPITAL

TK. 32,390

TK. 89,020

TK. 5,14,120

TOTAL LIABILITIES AND CAPITAL

TK. 3,61,760

TK. 4,30,440

TK. 7,80,140

Break-Even Analysis
Average per-unit revenue: based on the Tk. 700 monthly access fee.
Average per-unit variable cost: costs based on infrastructure, and administrative costs.
Estimated monthly fixed costs: Internet connections costs.

Break-Even Analysis
7000
6000
5000
4000
3000
2000
1000
0
-1000
-2000
-3000
-4000
-5000
-6000
-7000

BREAK-EVEN ANALYSIS
Monthly Revenue Break-even
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Tk. 80,720

Assumptions:
Average Percent Variable Cost

5%

Estimated Monthly Fixed Cost

Tk. 76,680

Ratio Analysis
RATIO ANALYSIS
YEAR 1

YEAR 2

YEAR 3

INDUSTRY
PROFILE

Sales Growth

0.00%

262.63%

59.38%

15.97%

Other Current Assets

0.00%

0.00%

0.00%

56.35%

Total Current Assets

35.17%

76.99%

96.55%

87.48%

Long-term Assets

64.83%

23.01%

3.45%

12.52%

TOTAL ASSETS

100.00%

100.00%

100.00%

100.00%

Current Liabilities

47.56%

31.76%

11.38%

30.66%

Long-term Liabilities

0.00%

0.00%

0.00%

23.07%

Total Liabilities

47.56%

31.76%

11.38%

53.73%

NET WORTH

52.44%

68.24%

88.62%

46.27%

Sales

100.00%

100.00%

100.00%

100.00%

Gross Margin

95.00%

95.00%

95.00%

100.00%

90.73%

74.90%

73.80%

Percent of Total Assets

Percent of Sales

Selling, General & Administrative 251.52%


Expenses
Advertising Expenses

0.00%

0.00%

0.00%

1.37%

Profit Before Interest and Taxes

-156.52%

6.10%

28.72%

1.03%

Main Ratios
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Current

0.74

2.42

8.48

1.97

Quick

0.74

2.42

8.48

1.50

Total Debt to Total Assets

47.56%

31.76%

11.38%

59.78%

Pre-tax Return on Net Worth

-1767.98%

90.88%

118.12%

2.93%

Pre-tax Return on Assets

-927.10%

62.02%

104.68%

7.28%

Additional Ratios

Year 1

Year 2

Year 3

Net Profit Margin

-156.52%

4.27%

20.10%

N/A

Return on Equity

-1767.98%

63.62%

82.69%

N/A

Accounts Payable Turnover

11.59

12.17

12.17

N/A

Payment Days

27

26

24

N/A

Total Asset Turnover

5.92

10.17

3.64

N/A

0.91

0.47

0.13

N/A

Net Working Capital

(Tk. 765)

Tk. 5,900

Tk. 49,412

N/A

Interest Coverage

0.00

0.00

0.00

N/A

Assets to Sales

0.17

0.10

0.27

N/A

Current Debt/Total Assets

48%

32%

11%

N/A

Acid Test

0.74

2.42

8.48

N/A

Sales/Net Worth

11.30

14.90

4.11

N/A

Dividend Payout

0.00

0.00

0.00

N/A

Activity Ratios

Debt Ratios
Debt to Net Worth
Liquidity Ratios

Additional Ratios

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Marketing
FlashNet Online Ltd. Online Ltd. will take various marketing plan to establish in market. In this
market Chittagong is not so competitive. We will set an attractive price also take various
promotional strategy.

Market Analysis
Within the last three years there has been a proliferation of broadband Internet connections. With
so many people enjoying fast connections at work, they are no longer willing to deal slow
connection. With the advent of WDM technology, customers can now enjoy a fast connection
with inexpensive way. The targeted market segments are: Home, Office and Techies.

MARKET ANALYSIS (PROJECTED CLIENTS)


Potential Customers

Year 1

Year 2

Year 3

Home

5,400

6,000

7,500

Office

3,400

3,600

4,200

Techies

1,000

1,100

1,300

Total

9,800

10,700

13,000

Customers will grow slowly in first two years but after the complete of second year customers
will increase very fast. So revenue will increase in third year.

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Local Market Growth


35%
30%
25%
20%

% growth over prior period

15%
10%
5%
Techies
Office
Home

0%
Year 1
Year 2

Year 3
Home

Office

Techies

Market Segmentation
FlashNet Online Ltd. Online Ltd. has chosen the three aforementioned target markets due to their
adoption of broadband Internet technology. It is these three groups that are most likely to use a
fast connection and the most willing to pay a premium for the connection.

Market Segments

Techies; 10%
Home

Office
Office; 35%

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Techies
Home; 55%

Competition
As mentioned in the previous section, DSL, cable, and satellite access are the competitors in the
broadband market. Consumer buying patterns are based on two factors:

Availability: not every type of broadband connection is available to every consumer.


Consumers often pick service providers based on what is available to them.

Convenience: this is often based on where the outlet cords are based in the house,
whether the computer will be located closer to the cable TV or nearer to a phone jack.
There are two main competitors in this area- Chittagong Online Limited (COL), Chittagong
Telecom Services Ltd (CTSL).

Pricing
As mention earlier we will provide inexpensive broadband connection compare to our
competitors. Our main target is to provide internet service with least cost and capture market
with lower price.
Our Price

Competitors Price
COL

Package

CTSL

Price

396 kbps

Tk. 500

N/A

N/A

512 kbps

Tk. 800

Tk. 1,000

Tk. 1,000

1 mbps

Tk. 1,400

Tk. 1,750

Tk. 1,800

1.5 mbps

Tk. 2,000

N/A

N/A

2 mbps

Tk. 2,500

Tk. 3,000

Tk. 3,200

4 mbps

Tk. 3,500

N/A

N/A

5 mbps

Tk. 4,000

N/A

N/A

*Youtube speed- 10 mbps and FTP Server speed- 20 mbps for all users.

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Advertising and Promotion


As the name implies, FlashNet Online Ltd. will be using an approach to developing awareness of
the offered services. FlashNet Online Ltd. will adopt a multi-pronged marketing approach:

Advertising/postings with local retailers and commercial businesses. This will provide
FlashNet Online Ltd. with great visibility in the exact community that it operates in.

Mailings. FlashNet Online Ltd. will adopt a targeted mailing campaign to local residents.

Website. FlashNet Online Ltd. will leverage its website as a comprehensive and efficient
source of marketing/sales information.

Sales Strategy
The sales strategy that FlashNet Online Ltd. will adopt is based on developing an awareness of
FlashNet Online Ltd.' service as a viable alternative to Cable and DSL within the community.
The message used will be that you can receive broadband speed connections to your computer,
wherever it may be, even your laptop on your front lawn, at a price that is a fraction of the
current competitors'. This will be done with targeted advertising with local retail/commercial
establishments in the area. Additionally, FlashNet Online Ltd. will rely on mailings to get the
word out. Lastly, FlashNet Online Ltd. will have a website for marketing, sales, and
administrative purposes.

Sales Forecast
FlashNet Online Ltd. has developed a conservative sales forecast. Adoption rates of
customers are fairly steady from one month to the next. A conservative approach has been
adopted to minimize any external variables that may affect future operations.
FlashNet Online Ltd. believes that it will experience extensive growth for several years
for several reasons. The first is the general adoption of broadband connections which has
been encouraging for the last several years. Another reason FlashNet Online Ltd. believes

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their forecast to be accurate is it offers a viable, less expensive alternative to current


broadband connections.

monthly s ales
60000
50000
40000
30000
20000
10000
0

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Sales by years
BDT 2,500,000.00
BDT 2,314,430.00
BDT 2,000,000.00
BDT 1,526,650.00

BDT 1,500,000.00

BDT 1,000,000.00
BDT 565,840.00
BDT 500,000.00

BDT 0.00
Ye a r 1
Ye a r 2
Ye a r 3

SALES FORECAST
YEAR 1

YEAR 2

YEAR 3

Monthly Internet Service

Tk. 5,65,840

Tk. 15,26,650

Tk. 23,14,430

Other

Tk. 0

Tk. 0

Tk. 0

TOTAL SALES

TK. 5,65,840

TK. 15,26,650

TK. 23,14430

Sales

Strategy and Implementation


Simply put, FlashNet Online Ltd.' strategy is to offer a service, demanded by customers, at a
price that undercuts the competition. This will be accomplished, not by accepting below-market
margins, but by leveraging technology, to help drive FlashNet Online Ltd.' costs down.
Awareness regarding FlashNet Online Ltd.' services will be generated effectively and
inexpensively to the specific target segments that FlashNet Online Ltd. has focused on.

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Launch Strategy
FlashNet Online Ltd. will open its doors for business on April 1, 1996. S.M. Rasel is already
devoting full time to this venture. Shahinur Rashid, Shafiqur Rahman and ShakilaAkterShipu are
contributing many hours to the planning and launch phase of this business. They will transition
to salaried contributors as the business evolves.
Equipment will be ordered on March 1, 2016. The long lead item which was ordered on February
1, 2016. The install date promised is March 15, 2016. This allows two weeks for debugging and
testing of the system.

Growth Strategy
Growth is expected to be very fast. After the third month it is expected that 100 new users will be
added each month. Our current staffing will be able to accommodate this until the sixth month
when two additional part-time technical people will be hired to handle the phones. We will hire
Computer Science majors from University. The key concern is to be prepared for growth that is
twice as fast as this. We must have sufficient resources (funding) to meet the demand in this
burgeoning market.
Several key changes will be investigated when the subscriber base reaches 1,000. The first major
change will be to upgrade our bandwidth to 10Mbps.

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