Assignment: Report on Business Plan

COURSE SECTION
MGT 368 6

Prepared For
Faculty Initial
Faisal Wali FsW

Prepared By
NAME ID
S.M. Abraar Karim 1210033030
Farhad Bin Alam 1210739030
Md. Muhtasim Muneem 1210902030
Md. Ahadul Islam 1220050030
LETTER OF TRANSMITTAL

09-12-2015
Faisal Wali
Director, CPC
Senior Lecturer
School of Business
North South University

Subject: Submission of the business plan

Dear Sir,

We are pleased to submit the business plan on MOTORHEADS Cafe as a part of

Requirement for our MGT 368 course.

In preparing this business plan, we have tried our level best to include all the relevant
Information and explanations to make the report informative and comprehensive.

It was a very enriching experience for us to prepare this business plan. We will be available
for any clarification, if required. Thank you for giving us this wonderful opportunity to work
on this business plan.

Sincerely,

S.M. Abraar Karim 1210033030

Farhad Bin Alam 1210739030
Md. Muhtasim Muneem 1210902030
Md. Ahadul Islam 1220050030
 EXECUTIVE SUMMARY
State of the art automobile repair shop, Jaw dropping Vehicle modification, Foods that tingles
your tastebud and a Go-Kart racing track that leaves you breathless, is Motorheads.
Motorheads is a brain-child project of 5 automobile lovers and enthusiasts that covers an area of
17000sqft dedicated to automobile enthusiasts of Bangladesh. The goal of this synergetic project
is to bring together Car and Bike enthusiasts to a place, where they can become one community
and get their precious automobile machine the best possible maintenance service. After extensive
market research, it was identified that:

1) There are very few/negligible number of Auto-garage that provides trustworthy services.
2) Given the increasing number of Premium brand cars and bikes, the number of high end garage
are still the same and the owners are in desperate need for premium service garage. In addition,
there is no service center in Bangladesh that provides vehicle service with state of the art, high
tech machineries.
3) The automobile enthusiasts, who in every case drives/rides their own vehicle, when servicing
their ride has to pass idle time, and has to go to distant places for food and other refreshments.
4) Vehicle modification, let that be of Cars or Bikes, is increasingly becoming a craze among the
enthusiasts, but theyre unable to act of the craze because of unavailability of quality
modifications parts and accessories.
5) Automobile enthusiasts love to drive/ride fast, but are unable to enjoy because of the poor
road condition and capital city traffic.
And the solution to the analysis was Motorheads, where all the above 5 issues will be addressed
and in addition to that, technology is about to be used in such extent that will leave the customers
starstruck. As of this very moment, Motorheads has no direct competitors and the segmented
ones arent providing the standard of service Motorheads plans on introducing.
The mission of Motorheads caf is as follows:
1) Becoming a place, that the automobile enthusiasts can call their second home.
2) Introduction of the most technology bound, state of the art machinery equipped vehicle
workshop that ensures service like no other workshops. The vehicle may be Toyota, or it may be
a Ferrari, the service we shall provide is premium-most.
3) A caf that reflects the passion of automobile enthusiasts in every aspect.
4) Inventory of Original, high end modification parts for the modification enthusiasts, and
dealership of modification parts giants like TRD, Sparco, HKS etc.
5) A Go-Kart racing track, that will undoubtedly leave speed lovers breathless.
As automobile enthusiasts, we know what someone just like us can ask for, and we
Motorheads are set to provide that and even more.
 TABLE OF CONTENTS
TOPIC PAGE NUMBER
INTRODUCTION 5
STATEMENT OF CONFIDENTIALITY 6
BUSINESS MODEL 7
BUSINESS MODEL CANVAS 8
BUSINESS ENVIRONMENT ANALYSIS 9,10,11
PORTER'S FIVE FORCES & SWOT 12
ANALYSIS
STAKEHOLDER'S ANALYSIS 12
DESCRIPTION OF VENTURE 12
GARAGE AND MODIFICATION SHOP 13
SERVICES
CAF (RESTAURANT) SERVICES 14,15,16
EMPLOYEES & EQUIPMENT 17
BACKGROUND OF ENTREPRENEURS 18
SERVICE DELIVERY MODEL 18

OPERATIONAL PLAN 19

MARKETING PLAN 19

ORGANIZATIONAL PLAN 20

ASSESMENT OF RISK 21

FINANCIAL PLAN 22-40

APPLICATION AND SOURCES OF 41

FUND

APPENDIX 42
 INTRODUCTION
The name of our corporation is Motorheads Corp and the name of our venture is Motorheads.
Our business is located at Purbachal area.
Name(s) and address(s) of the principal(s):
Motorheads is the brain-child of 5 entrepreneurs, who sought to come up with a venture like
never before. The entrepreneur name and email address are given bellow:
Members Phone No. Email
S.M. Abraar Karim 01720578756 ABRAAR.KARIM.RAFAT@GMAIL.COM
Farhad Bin Alam 01760301787 SHANTOALAM123@GMAIL.COM
MD. Muhtasim 01939427806 MUHTASIM.MUNEEM360@GMAIL.COM
Muneem
Md. Ahadul Islam 01682017623 AHADKHAN337@YAHOO.COM

Nature of the business:

Our business is the combination of a Cafe, Automobile Repair and Modification garage,
surrounded by a Go-Kart racing track, is what Motorheads is. Actually, the nature of our
business is provides ultimate car racing opportunity for car lover and also give excellent car
modification for the customer. However customer can also have coffee and different fast food
items from the coffee shop.
Statement of the financing needed:
The investment financing budget of our business is 100 crore taka. Around 40 crore taka are
collected by all five members in our business which is 8 crores per member. And other 60 crores
were collected through bank loan.
 Statement of Confidentiality
Motorheads Cafe & Modification Shop is a trusted provider of genuine automobile parts and
portraits itself as a beacon of pure products served throughout Dhaka. Motorheads Cafe will
maintain in confidence all confidential information produced within the Cafe in connection with
services provided by the modification shop and only use such confidential information only for
its intended purpose.
Confidential Information means information that the Cafe provides it to the others. Motorheads
Cafe will not by any means disclose information to any third party except as necessary to fulfill
the services to be performed by the Cafe and Modification Shop for their customers.
Upon request, this document is to be returned immediately to Motorheads Cafe and
Modification Shop

________________
Signature

S.M Abraar Karim

Chairman
Motorheads Corp.

_________________
Date
 BUSINESS MODEL
Motorheads plans to capture the market as soon as it starts its business and looks forward
to build a customer base, comprising of every single automobile enthusiasts. We plan to penetrate
the market, and our pricing will comply with our strategy. The amount we will charge for our
services will reflect the quality for the service and usage of state of the art machinery without a
premium price tag. The market we plan to target will comply with our pricing as they also would
not compromise.

The pricing strategy that Motorheads Cafe and Modification Shop will use isn't different
at all as used by other ventures. For the Go-Kart area, we would use the Price Skimming strategy,
charging a high price for it at the introduction stage of the business and later decrease the price
over time depending on whether the customers would prefer a lower price. On the other hand for
the cafe and car modification shop we would use the Premium pricing as most of the products
sold will not be for the mass market, rather than for the niche market. We are setting a
benchmark for this venture as there are no competitors for Motorheads Cafe.

The social goal of our venture is to unite the Automobile enthusiasts of our country and
start a culture, the culture of Motorheads, where the car enthusiasts and bike enthusiasts will
come together and form a community. Motorheads will often hold seminars and take other steps
to promote safe driving in Bangladesh.
We are very optimistic about the financial sustainability of Motorheads as there is no
other venture in Bangladesh like that of Motorheads, which plans on fulfilling demands of many
group of people regarding automobile services and modification. We think the quality and range
of services we will provide will capture market as soon as we start the business and thus are not
worrying about the high startup cost of the business.
Motorheads is about automobiles and the first thing that comes in the mind of people
when they hear automobiles is environment pollution. Motorheads plans on eradicating this
misconception and show the people that Automobile servicing business can be done without
polluting the environment. Our service garage will be equipped with machineries that filters the
harmful materials and we will make sure the waste materials are properly managed, ensuring no
environmental harm.
Honesty is rare nowadays, especially in business ventures, where business people only
thinks about making profit by ripping off customers in any way possible. Motorheads will be a
place where our customers can trust with their vehicles, our modification and service garage will
be under surveillance 24x7. The customer can watch their vehicle getting service via our
Motorheads app, or our self-provided tablet PCs, and they can also view the copy of the video of
servicing if they leave their vehicle. The parts, let that be for servicing or modification will be
100% genuine, which will be guaranteed by Motorheads, and in case of custom imports, the
customer can purchase through our trusted dealers for ensuring genuine products.
 BUSINESS ENVIRONMENT ANALYSIS
Bangladesh is on the verge of becoming a frontier market, with improving GNP, steady decline
in unemployment and people with increasing amount of disposable income. The rate of car
imports in Bangladesh is higher than ever and it is still rising. The Government is working
continuously for the improvement of the roads of the country especially that of Dhaka as it is the
capital.
The culture of Bangladesh is heavily influenced by that of West, and craze regarding
Automobile is the key factor in our venture. We plan on capturing market of young people who
are increasingly becoming fond of tuned and modified cars, but are unable to act on their interest
due to lack of proper places.
Even if there are some places in Dhaka that may serve the market, but dividedly.
Currently Motorheads has no direct competitors. If seen separately, then Crimson Cup, Captains
World, Butlers Chocolate Caf and Gloria Jeans are the potential competitors for our Caf
business. BDKitz, Autosmith, Reload Autos are the competitors for our modification and repair
service. We are the very first venture that plans to combine all of the features that the customers
want and need, and provide service like never before with our arsenal of high-tech equipments,
that the existing automobile shops of Dhaka lacks badly.
The demand for quality automobile repair shop has been there in Dhaka for a very
longtime, and for the past few years the number of vehicles in Bangladesh is increasing. People
are now capable of buying cars of exotic brands such as Audi, Chevrolet, Chrysler, Jaguar,
BMW, Mercedes, Ferrari etc. but the number of shops for repair/maintenance of such are very
few. So the market for high-tech automobile garage is very lucrative for tapping.
Motorheads will feature Go-Kart racing track, for the first time inside Dhaka city. We all
know the current condition of Dhaka traffic, and even with the increase in number of roads and
improvements of the existing ones, the roads wont be sufficient for those who just want to drive
interruptedly on pure tarmac. Currently the only place that provides Go-Kart for customers and
our only competitor is Fantasy Kingdom, which is far away from the city.
 Business Environment Analysis
PESTEL Analysis:
PESTLE analysis, which is sometimes referred as PEST analysis, is a concept in marketing
principles. Moreover, this PEST is an acronym for Political, Economic, Social and
Technological. For our business its very important because it will help us to improve our
performances and activities in the long run.
Political factor: Our political situation is quite stable right now, which help us to do business for
a very long term. We will run our business very indigently which will help us to maintain
Political stability, tax guidelines, trade regulations, safety regulations, and employment laws.
Economic Factor: Bangladesh is the verge of becoming a frontier market, with improving GNP,
steady decline in unemployment and people with increasing amount of disposable income. The
rate of car imports in Bangladesh is higher than ever and it is still rising which shows the
excellent economic status in Bangladesh. We plan on capturing these economic market of young
people who are increasingly becoming fond of tuned and modified cars, but are unable to act on
their interest due to lack of proper places.
Social factor: There is no doubt that the society is continually changing. The tastes and fashions
are a great example of this change. One of the most significant differences is the growing
popularity of social media. After looking into these regions many social accounts we ended up
taking this decision that the new generation are into cars and bikes heavily. They love speed
related activities which totally flourishes our business venture.
Technological factor: The new generation of Bangladesh is more into the technological
changes, and the kids these days are more into car modifications through Need For Speed games.
When the kids are turning into adulthood the passion for car modification is still in them. The use
of technological advances inside the shop will be of top notch equipment to provide the best
service.
Environmental factor: Currently in Bangladesh there are only a handful of hybrid cars as
people are more concerned of the pollution caused by vehicles. Keeping that in mind only three
mechanics in entire Bangladesh are capable of handling hybrid vehicles, but they dont provide
any assurance whether the particular service is of the top mark. Motorheads will provide the best
service along with the complete assurance that all our valued customers will receive 100%
assurance for the changes made accordingly.
Legal factor: The garages in Bangladesh are lenient over the legal issues as many of them are
not even registered, considering that factor Motorheads will have the leniency for acquiring the
documents but we will follow the international laws and regulations so that there will wont be
any legal issues over a period of time in the near future.
Porter's five forces:
Threats of new entrance: Since Motorheads is a combination of caf, garage and modification
shop, which is first of its kind, we dont have any direct competitors. Although we might face
competition from start-up restaurants, caf or a garage but we may not face any direct
competition.
Supplier Power: The amount of suppliers are in a large quantity, thus we can easily imply the
buyers power over them.
Buyers Power: There is a wide variety of choices, since the buyers buying power is more than
the suppliers power. The niche market that we are looking for is very small because there are
very less amount of garages that would provide the similar service as Motorheads.
Threats of substitutes: There are a range of local garages which are not intense in the similar
field of work as compared with the service which will be provided at Motorheads, the number of
substitutes will be very low as they may or may not be able to find a location which would be
inside the capital city and which would provide a Go-Kart racing track.
Competitive Rivalry: There will be competitors for our venture such as cafs in Bangladesh
such as Gloria Jeans, Butlers Chocolate Caf and Tealeaf and Coffee Bean and car modification
shops will include BDKitz, Reload Autos. For go-kart racing track the direct competitor for
Motorheads would be Fantasy Kingdom, but within Dhaka city there are no competitors as of
now.
SWOT Analysis of Motorhead Cafe:
Strengths Weakness
Have expertise to work on a
variety of vehicle models.
Extensive training to complete Repair cost is little bit high.
complicated types of repairs. Sometimes not meet customer
Specialization in specific types of need.
repairs such as petrol cars or Business area little bit distance for
hybrids. lots of customer.
Provides imported car body parts. Maintenance cost is high.
Experienced employees.
Opportunities Threats
Number of sports car is increasing
Lots of well-established cafes are
rapidly. present in the market.
Young generation is getting more Well established modification shops are
into modified cars. also there.
Now a days people are more into Competition is very intense in the
dinning outside and hang around in restaurant business.
cafes. new technology which our employees
People simply love speedy dont have the knowledge.
experience of go cart racing.
Stake Holders Analysis:
Due to the positive environmental effects of widespread use of hybrid car, humanity at large is a
key stakeholder. The movement toward these vehicles can count on strong support from
environmental organizations, and from the scientific community. Support from the public sector
will vary with public opinion, as well as with the effectiveness of lobbying efforts from various
industry stakeholders. Resistance will come from industries and countries that rely heavily on
oil and gas resources.
As of yet there are no competitors for Motorheads Cafe and Car Modification shop as there are
no businesses that would provide a Go-Kart track with an authentic car modification shop. The
profile of the customers is normally the higher end class in the society, these are for the people
who wouldnt mind spending a little more for a quality product for their preferred vehicle.

DESCRIPTION OF VENTURE
Mission Statement: "Amaze your tastebuds and Experience the thrill of Go-Kart while we
ensure Premium Vehicle Modification and Repair Service that your ride deserves"
Vision Statement: One-stop shop for all Motorheads out there
The reason for going into this business is because these sort of venture which aim for
automobile enthusiasts are very rare to find in Bangladesh nowadays. A love for automobile, the
thirst to find a venture where all the minds only talk and think about automobile modification
and a caf with it. It's more of a plus one for any enthusiasts. The demand for the services we
plan on providing were there for a very long time, and we plan on bringing the market of Vehicle
Modification, Vehicle Repair, and Automobile themed restaurant together and create a new
market, which will fulfill the demand of all three market with an added advantage, no direct
competitors.
At the moment, firstly there arent any automotive themed caf with a garage and a go-
kart track involved in Bangladesh. Secondly we would provide genuine parts from HKS, Sparco,
and TRD which would be used in the customers car modification shop. The only go-kart track in
Bangladesh is situated in Fantasy Kingdom (26.5 km from Dhaka) which becomes a hassle for
people as there is a want for driving on a race track and that need isnt being fulfilled by anyone
as of yet. Thus we think that if we can provide a venture that provides something that is out of
the box for the general public living in Dhaka, we can surely know there will be a boom in the
market.
We are optimistic about the success of this venture is because the market we plan to
penetrate is untapped and the variation we provide is unmatched. The demand for the services we
plan on providing were there for a very long time, and we plan on bringing the market of Vehicle
Modification, Vehicle Repair, and Automobile themed restaurant together and create a new
market, which will fulfill the demand of all three market with an added advantage, no direct
competitors.
 So far only the planning for the venture has been done, but we plan to act on our dream
project as soon as possible.
GARAGE AND MODIFICATION SHOP SERVICES:
Services Features of Services
Free of Cost Services Wiper Blade Installation
Engine Light Code Retrieval
Air Filter Replacement
Starting and Charging System
Maintenance Service Headlight Restoration
Cabin Air Filter Installation
Small Bulb Installation
Spring Maintenance Package
System Evaluation A/C System Leak Evaluation
Coolant System Evaluation
Steering and Suspension System
Evaluation
Fluid Service Engine Flush Service
Transmission Fluid Service
Brake Fluid Change
Coolant Drain ad Fill
Power Steering Flush
Tune-ups Smoke test Diagnostic
Spark Plug Installation
Turbo Installation
Supercharger Installation
Air-Cooled Turbo Installation
Fluid Exchange Fluid Leak Check
Brake Fluid Change
Power Steering Fluid Change
Inspection Services 40 steps prevention
Maintenance and Safety Inspection
Battery Services Battery Protection and Checkup
Headlights Projection Light Installation
Angel eyes installation
Kit Installation
Bodykit Set Installation
Custom Parts Installation
CAF (RESTAURANT) SERVICES:
Sandwich & Burger Vegetable Burger
Chicken Sandwich
Chicken Burger
Beef Burger
Sharma Roll
Tuna Sandwich
Appetizer Shrimp Cocktail
Fish Finger
Fried Prawn
Vegetable Spring Roll
Chicken Wonthon
Prawn on toast
Vegetable Pakura
Fried Calamari
Fish Tempura
Chicken Nugget
French Fries
Soup French Onion Soup
Chicken Corn Soup
Thai Thick Soup
Minestrone Soup
Seafood Clear Soup
Thai Clear Soup
From the garden Fresh Garden Salad
Chef Special Salad
Russian Salad
Chicken Cashew Nut Salad
Grill Chicken Salad
Greek Salad
Shrimp & Pasta Salad
Cucumber Yogurt Salad

Thai/Chinese Cuisine Thai/Chinese Style Vegetable Fried

Rice
Prawn with Garlic Sauce
Schezwan Chicken/Beef
Beef Sizzling
Chicken Sizzling
Prawn Sizzling
Crab Chili Paste
 Sweet & Sour Prawn Chicken
Chicken Lemon
Beef with Basil Leaf
Beef/ Chicken with Oyster Sauce
Italian Penne Arabiata
Spaghetti Bolognaise
Spaghetti Carbonara
Fettuccini Pesto
Farfalle Chicken/ Seafood
Beef Lasagne
Continental Grill Chicken (Half)
Beef/Chicken Stroganoff
Chicken Steak
Beef Steak
T-Bone Steak
Grill Snapper
Fish Munnieur
Grilled Fish
BBQ Chicken
Seafood Platter
Pepper Steak
Steak Dine
Sirloin Steak
Indian Cuisine Chicken Bhuna/Rezela/Do-Piaza
Beef Bhuna
Mutton Bhuna
Fish Masala
Prawn Malai Curry
Chicken/Mutton Korma
Chicken Butter Masala
Beef Satroka
Beef Achari
Chicken Biryani
Mutton Biryani
Vegetable Biryani
Seafood Pomfoet Fry/Curry
Prawn Tempura
Crab Chilli Paste
Fish & Chips
Grill Lobster
Grill Salmon
Grill Kattel Fish
Steam Fish
 Hilsha Fry/Curry
Tandoori & Kebabs Beef Boti Kebab
Chicken Tikka Kebab
Chicken Reshmi Kebab
Tandoori Chicken
Tangri Kebab
Mutton Boti Kebab
Beef Seekh Kebab
Fish Boti Kebab
Cocktail Kebab
Pizza
Pizza Bolognaise
Pepperoni Pizza
Hawaiian Pizza
Meat Lovers Pizza
Vegetarians Hub Mixed Vegetable Curry/Fried
Aloo Mutter Peneer
Vegetable Navarantina
Zira Aloo
Palak Paneer
Vegetable Dopiaza
Side Menu Chapati
Paratha
Naan
Masala Kulcha
Kashmiri Naan
Plain Rice
Peas Pillau
Kashmiri Pillau
Mashed Potato
Chana Masala
Plain Yogurt
French Fries
Drinks Coke, Sprite, Fanta
Tonic Water
Fresh Lime Soda
Fresh Cocktail juice
Lipton Tea
Milk Shake
Hot Beverages Hot Chocolate
Cappuccino
Black Coffee
Espresso
 Flat Coffee
Mocha Coffee
Double Espresso
Latte
Ice Caf Mocha
Irish Latte
Dessert Tiramisu
Lemon Cheese Cake
Red Velvet Cakes
Ice Cream (Vanilla, Chocolate, Butter
Scotch, Dark Chocolate, Mango, Strawberry
flavors)
Fruit Salad with ice cream
Fruit Platter
Cream Caramel
Crapes
Banana Split

EMPLOYEES:
International Chef
Waiters
Specialized Mechanics
Helping Assistants
Time-Keeper
Track Security
Cahsier
Security Guard

EQUIPMENTS:
LED monitors
Helmets
Go-Karts
Worn-out Tyers for Lane Division
Lap Timer
Display
Safety Equipments
Reception Desk

Motorheads is planned to be situated in Purbachal area, with an area of 16800sqft. We

will lease the plot and build the whole thing from the scratch. The reason for choosing such
location is because it is inside the capital city but still far away from the hassle that comes with
it.
We will patent the name Motorheads, the Logo and designs. The plot on which we are going to
establish the venture will be leased, we are closing in on a deal of leasing per katha plot for
BDT300,000. Everything for the venture will be built from the scratch as we start working on it.

BACKGROUND OF ENTREPRENEURS:
The five entrepreneurs who have thought hard and well for establishing Motor Heads Caf are
listed below with a brief information about themselves.
1) S.M. Abraar Karim: Major in Marketing and International Business, also a car enthusiast.
He was successfully engaged in second hand car market for the last six to seven years. He
is also actively engaged in several automobile groups of Dhaka and Chittagong.
2) Md. Muhtasim Muneem: Major in Finance (Concentration), shows enthusiasm in
Automobile technology and gadgets. He was a part of Pathao, a startup business and
guided the team through the pilot phase of the venture, thus has experience being an
active part of a venture that was built from scratch as well.
3) Farhad Bin Alam: Major in International Business, he was brought up in Saudi Arabia.
He has started working at Hotel Bengal Blueberry as the Executive Director from the
start of the hotel period, thus has prior experience of managing a business. He is also an
interest on hyper/sports car that are available in Bangladesh.
4) Ahadul Islam- Major in Accounting and Finance, he is an expert in financial analysis.
Also specializes in competitive analysis, problem solving, merger and acquisition.

SERVICE DELIVERY MODEL

As Motorheads is a combination of an Automobile Servicing and Modification Shop and

Restaurant which features a Go-Kart racing track, it has to maintain inventory for each of the
branches. The Automobile merchandizes that Motorheads will provide would be imported,
purchased by cash from Auto Accessories Center, Bangkok (http://www.autobangkok.com/)
and Best Cars Camina,Bangkok (http://caminamoshaciat.blogspot.com/2014/11/car-
performance-parts-bangkok.html).

Motorheads will provide 100% guarantee of authenticity of parts. For the Caf, Motorheads
will source its inventory from Agora, through a contract.
As Motorheads will be getting its inventory from Agora on a bi-weekly basis, the
storage requirement for caf section wont be that high. Most of the storage space will be used up
by Servicing and modification parts, which will be imported on a monthly basis and also
according to customer order. The inventory book-keeping will be automated, as it will be shared
with our Motorheads app.
 Motorheads will not have any branches in its initial stage of operations, and the services
will be provided directly from our shop. We will provide light automobile services to customers
home.
Motorheads will not provide any kind of credit purchases/services. Our customers can
avail our services through cash, Debit card or Credit card.
Motorheads will implement technology on a heavy basis. Our whole venture is planned to
be automated and Motorheads will have its own app. All the machineries and equipments will be
state of the art and our team of engineers will ensure flawless service provision.

OPERATIONAL PLAN
Motorheads is a combination of a caf, modification shop and garage, and we plan to serve all
our customer bases equally. Well appoint international chef for our caf, thus will be providing
food of great quality. We plan on maintaining inventory of high-end modification parts and
therell be provision for custom order made by customers. For body kit sets, well store parts
from Rocket Bunny, Liberty Walk etc. well store rims of BBS, Enkei, SSR, WorkEmotion etc.
Well also get sole dealership from Sparco, HKS, TRD for the first time in Bangladesh, thus
assuring unmatched quality. Every product purchased for inventory maintenance will be
purchased through cash, there will be no credit purchases made by Motorheads.
Motorheads will implement all the latest possible technology for providing service,
whether its for caf or Modification shop or service garage. The whole area will be connected
through our personal server. Motorheads will have its own website and mobile application for
both Android and IOS. When a customer visits for the first time, theyll be registered in our
system and theyll get access to all of our services through the app/website. Using their customer
ID, they can browse through our caf menu and order food and they can purchase parts from our
inventory custom order their preferred parts from our dealers outside the country. As our whole
modification and repair shop will be covered by CCTV cameras, the customer can get live
footage of the car being serviced or modified. It can also interact with the senior mechanic
working on his/her car. For the customers who doesnt have their own smartphone devices, well
provide tablet PCs. All the machines that will be used for the modification/service purposes will
be state of the art for flawless operation.
MARKETING PLAN
Motorheads Cafe and Car Modification shop will provide a range of products that would be sold
to their valued customers, as mentioned above on "Description of Venture" under Cafe
(restaurant). Motorheads Cafe will also provide a go-kart track for those people who would
prefer having a skill set for driving on an actual race track. Such a track is hard to find in
Bangladesh as these are only provided at places outside Dhaka.
For pricing, in the go-kart area, Motorheads Cafe would use the price skimming strategy since
charging high price for a luxury product is feasible since the market for such venture is only for
those who can afford to pay up. As time goes on, Motorheads would decrease their price
depending on whether there is a fall in the customers or not.
Thirdly Promotion, Motorheads Cafe prefers the use of social media, brochures, posters, an
entire page on the newspaper defining the new era of a cafe plus a race track and daily
advertisements on bill boards and television would help the venture promote their product to the
general public. On occasions such as Rally Cross or Car Expo, Motorheads Cafe would promote
themselves by sponsoring on the events, by this more people would know that there is a shop that
would sell genuine products to their valued customers.
The Place where the Motorheads Cafe is situated is in Purbachal area, where the area would be
specialized f or automobile in super, sports, collector's edition and hybrid cars.
The distribution channel will be from Chittagong and Syhlet.
Furthermore Packaging, since most of the products inside the cafe would be easy to carry,
Motorheads cafe would provide proper packaging facilities for their products to be taken out for
home.
Motorheads Cafe and Car Modification shop will position itself in such a manner that only
premium line automobile solution will only be provided. Nowadays, other than Toyota,
Mitsubishi is being purchased but there is not a single authentic garage which would provide
authentic products straight from Thailand. The younger generation tends to purchase more of the
sports car nowadays. The price of a sports car is falling drastically which makes it easier for
people to purchase them rather than getting a sedan.
Last but not least, People, as we know Motorheads Cafe would recruit waiters, baristas,
mechanic, one or two staff members for the race track. Motorheads cafe would surely create
problems with the Islamic culture in Bangladesh with that of the foreign culture. To prevent such
things to occur it would be wise to have an open mind rather than a narrow mind.
ORGANIZATIONAL PLAN
Motorheads is a part of Motorheads Corporation, which is comprised of 5 members. The venture
is privately owned and the Members of the Board of Directors are the current shareholders. The
chairman of BOD has the privilege of casting 2 votes and the other members has the provision of
1 vote each. The current Chairman of the corporation and Head of foreign deals is S.M Abraar
Karim, Md. Muhtasim Muneem is the head of Finance, Md. Ahadul Islam is the head of HR,
Farhad Bin Alam is the head of Promotion and PR and the head of Food and Beverage. The
members of the BOD are also the head of management of respective departments. Every head of
Department has employees working under them. The salaries and other remuneration of the BOD
members and the employees are mentioned later in Financial plan. As the Head of Departments
are also the head of their respective department, he/she will take honorarium for their services
only.
*Two Eid bonuses will be given to the employees, which is 50% of their Salaries.
*10% commission will be given if specific target given to employees are met.
*If your significant other is pregnant, we will be rewarding them with an amount of BDT10000.
 ASSESMENT OF RISK
1) Weakness of the Business: one of the significant weakness of the venture is to employ
skilled workers, which is hard to find in this country. That is why we will provide the
mechanic and other workers proper training so that they can provide the best possible
service. We will have to employ foreign employees for training the employees and other
workers. This will cost the firm additional expenses in the beginning. Research and
Development will cost less as we are targeting a market which has an existing demand.

2) New Technology: The machineries will be imported from Japan, which will be the state
of the art. As we will be recruiting foreign employees, and since they will be training the
employers regarding operating the machines, maintenance and efficient use wont be a
problem. With the mix of efficiency and productivity, and providing customers with top
notch services, reaching breakeven wont be a matter of concern for our venture. If the
plan of our venture is successful, and we reach our goals the way we strategized, we can
reach economies of scale in a very short period of time and gain huge amount of profit in
the future.

3) Contingency Plan: As the local employees has the possibility of being less experienced
was a concern, we will be recruiting foreign employees from Japan and Taiwan, and this
approach will cost Motorheads a substantial amount of money. But as this will help our
venture in the long run, we are willing to take this risk. And since we are bringing state of
the art machineries directly from Japan, which will hugely increase our productivity, we
can go for more foreign employees if needed. The price we plan to charge the customers
despite being the best in the industry with latest machineries and highly skilled
employees, will be considerably less, because we plan to go for market penetration. All of
the points considered, we are prepared for the worst and are still confident of a profitable
outcome.
 FINANCIAL PLAN
Assumptions

We start our analysis with the following assumptions

Business Growth: Company growth: The BOD of Motorhead's doesn't plan on any sort of
expansion in its initial stages of business. As we dont have any direct competitor in the market
for our venture, we are assuming a growth rate of 15% annually.

Tax rate: It should remain unchanged in the foreseeable future (at 35% as it was during the year
ended July 1st 2015 to June 30th 2016)

Inflation rate: Inflation rate remains constant at 7.01%.

Revenue: Our main source of revenue is from restaurant, automobile garage, modification shop
and go-kart racing track

Expenses: The expenses are categorized as fixed, which would remain same for the next 5 years,
and variable which would increase or decrease, depending on the economy and the services
provided.
 APPLICATION AND SOURCES OF FUND
The money that we invested in this venture of ours mainly came from 2 sources, us 5
members will be investing a total of 40 crore, and well be taking a loan of 60 crore from
bank with an interest rate of 9% , which will be repaid over the course of 10 years. Well be
leasing plot, construct required buildings, build go-kart racing track, purchase machineries
and equipments, perform marketing activities etc. from our initial investments. Initial
operating expenses and salaries expenses will be covered from initial investment, in order to
maintain a smooth flow of business in the initial stages.
Appendix:
http://www.bestbuyautoequipment.com/
http://www.hksusa.com/
https://gensteel.com/steel-building-kits/auto-repair
https://www.appointment-plus.com/articles/how_to_open_an_auto_repair_shop.php
http://www.caranddriver.com/features/the-well-equipped-garage-everything-you-
need-to-create-yours-feature
http://www.doityourself.com/stry/how-to-build-a-go-kart-track
https://www.polepositionraceway.com/blog/how-build-go-kart-track/
http://www.inc.com/articles/201111/business-start-up-costs-restaurant.html
https://www.bb.org.bd/fnansys/interestlending.php
http://www.nbr.gov.bd/contents/publication/50.pdf
http://xtremeracingbd.com/
http://bdnews24.com/land/rajuk-purbachal-plot-price.html