Objective

The objective of this paper is to present the favorability of starting a new

company titled „Furnapp Limited‟ and thus the aim is to attract investors and
customers in order to strengthen the creation of the company. But the objectives
is not limited with in above, behind this study is something broader. Objectives
of the study are summarized in the following manner:

 To make a successful business plan;

 To establish a successful business. We named it “Furnapp Limited”
 To identify the business objectives as well as goals;
 To set a mission and vision of “Furnapp Limited”
 To research about customers demand;
 To set the features and services of “Furnapp Limited” according to
customers‟ demand;
 To make a plan and some strategy to gain profit as well as to
provide best service;

Methodology

Since we are going to introduce a new form of business which is not exists in
our country, we found it very difficult to collect all types of information we
need. But for researching our target market and suppliers, we collect
information from both Primary and secondary data sources. To select our
suppliers and to know the information about the cost of the furniture and
appliances we went to a market visit.From there we enriched with some primary
data. During this job we get a help from one of our business partner‟s uncle, as
he has a furniture business. Online journals, scholarly and newspaper articles
have also been used for the purpose of receiving the secondary sources of data.

Section I: Summary

The online furniture and appliance market is highly competitive and growing at
a very rapid pace. We‟re heading to a new segment and indirectly this
marketing is our competitors and focal point as well.

Page | 1
Among major Bangladeshi markets, Dhaka has the highest penetration of online
furniture and appliances sales and is expected to experience the fastest online
growth in the category going forward.

Although traditional brick-and-mortar home furnishings retailers still generate

the largest chunk of industry revenue, these stores are tending to lose market
share to rival channels such as specialty chains, off-price retailers and dedicated
Internet-only retailers.

In the last few years, numerous innovative pure-play furniture and home
furnishings retailers were established across the world, but few have reached
critical mass. Furnapp is the only online pure-play furniture and appliance
sharing company which will make its customers‟ lifestyle easier and make
smoother.

Starting from Dhaka Furnapp will cover the whole country and we have also a
plan to expand our business abroad, model sharing. A prototyped financial
model has been presented, which reflects how we will handle the financial
issues. With the skilled workforce from the management to bottom line people,
Furnapp will try its best to bring smile on its customers‟ face.

Heading from online channel, Furnapp meant to trendy and efficient marketing
strategy and it‟ll make easier to reach our potential customers. If Furnapp can
milestones properly, it will surely reach its goal as per the plan, planned by the
owners.

Section II: Business Description Segment

 Company Name: The name of our company is “Furnapp Limited”

 Business Structure: Partnership Business
 Business Concept: Selling and sharing-furniture and appliances
 Partners:
1. Afrin Sultana – the CEO
2. Md. Zihad Ahmed – The IT and Marketing Junkie
3. Faysal Sarker – Mr. Accountant
4. Md. Mehedi Al JohabAbhi - The Carrier

Page | 2
 Services:
“Furnapp Limited” is furniture and appliances sharing business. Furn stands
for furniture & app stands for appliances. But we are not only getting
involved in selling the productsonly, but we are going to rent them also. In
fact our main focus is to sharing or renting all types of household
accessories. In furniture sector we will have all types of furniture like living
room, kitchen, or bedroom furniture etc.And in appliance section we will
have television, fridge, fan, AC, oven etc. We will offer different packages
like: Shasroiyee Package (student package), Polished Package (for
corporates), and Family Package (for households/families). Family Package
will also be divided further into living room, kitchen room, dining room or
bedroom furniture. Anyone can take any package for a single room or for a
whole flat or can take only one product for a monthly subscription fee. When
someone shifts to a new place it is always a hassle to rent a place, and the
biggest challenge is to either shift the furniture or to buy new furniture or
appliances for the new place. In both cases, the person ends up spending a lot
of money. So, our rental business will help them to get any kinds of
household accessories at a reasonable charge/fee and without any hassle. We
will take the responsibilities to deliver their desired furniture and appliance
items at their place. The person who wants to take our services he or she can
visit our website or our facebookpage to order for the product what he or she
wants. He or she can call on our hotline and tell the product code what he or
she wants and within a short time they will get their desired product at their
place. We will deliver their desired products and also install the products at
their house or in working place. When they end up their needs of those
products we will also take the responsibility to take those out from their
place. The person who has the burden of their household accessories, they
can also share their accessories to our “Furnapp” and earn money. So, that
they not only can get the relief of their burden but also make a profit from
their burden. Our customer will spend a reasonable subscription fee and we
will take their entire headache.

 Industry Background
There are many companies and brands in our country, which manufacture
verities furniture and also have many branded appliances. We are going to
start up a company named “Furnapp Limited” which will also belong to

Page | 3
furniture and appliance industries. But we are going to do this business in a
different way. We will sell as well as rent our furniture and appliances to our
customer and in return they will pay alittle monthly fee for those products.
Not only that but also those who have extra furniture and electronics item
which they don‟t need actually, they can invest them into our business and
can get profit from our business. Though “Furnapp Limited” belongs to the
furniture and appliance industries, but it is quite different from the traditional
furniture and appliance business, available in our country.

 Company History
Transferring from one place to another place is a part of our life. When we
shift to a new place it is always a hassle to rent a place, and the biggest
challenge is to either shiftthe furniture or to buy new furniture for the new
place. In both cases, the person ends up spending a lot of money. Towards
the end of his stint at the city, finding buyers for the used furniture or costs
involved in transporting them to another city is such a pain! So, when we are
making a business plan, we thought that why not we start a business which
may reduce the hassle of shifting furniture and household appliances. We are
going to rent the furniture and the appliances to the people of our country.
Ours is a partnership business. We are five partners. (Afrin Sultana, Md.
Zihad Ahmed, Faysal Sarker, Md. Mehedi Al JohabAbhi). At the very initial
period we will rent the furniture we have excess in our house. Later we have
a plan to manufacture and to get those people‟s furniture who have extra
furniture and appliances in their house and rent them.

 Goals
Initially for three years we will serve only in Dhaka City, After 3 years we
will cover Chittagong division and after two years we will expand our
business toward Rajshahi and Khulna. After three years we have a plan to
cover the whole country.

 Mission Statement
Our mission is to providing maximum satisfaction to our customers by
providing their desired furniture and appliances at a very lower cost. We
belong to a developing country. So, all of us who don‟t have not the ability
to buy all kinds of household accessories we need, can get meet up their

Page | 4
needs. So, our goal is to provide the necessity items with a very low
payment.

 Vision
Our vision is to expand our business to cover the whole country and provide
the best service in this sector.

 Slogan

“Spend less, enjoy the best | One’s burden, another’s necessity”

 Uniqueness
“Furnapp Limited” will going to provide this sort of service which no one of
our country can even think before. “Furnapp” will rent all types of household
appliances and also give the investment facilities. That means those who
have excess can meet others‟ necessity of household accessories.This type of
business is not exist in our country but the people of our country those who
are living and shifting themselves from here and there for their work or for
the study purpose are getting bored to shift and buy new furniture for their
new apartment. This problem is questionable now-a-days. This is why we
are here. We are here to solve their problem.We think this is a unique
business plan. Because:

1. New concept: This is a new concept of business which is not

eventhinkbefore in our country.
2. Hassle Free: After shifting a place to another place, the biggest challenge
is to shift the furniture or buy new furniture. This is the biggest hassle.
So, he or she may just contact with us and we will pick it up at their
convenient time at no added expense.
3. Save Money: Anyone can select and rent from a range of furniture within
his/her budget. Why should they invest a huge amount of money in
purchasing furniture when they can have an option to use the best and
most desirable furniture in the market at cheaper monthly subscription?
They can save a considerable amount of money by renting furniture and
this money can be invested in assets that give good returns.

Page | 5
 4. Swap and change: Our customers can invest their furniture what they
don‟t need and they can get those furniture and appliances what they
exactly needed. They can change the decoration of their room at any time.

Section III: Marketing Strategy Segment

(A) Research and Analysis

1. Target Market

At the initial stage we will follow the niche market strategy. That means we will
cover a small area including small portion of customer. At first we will start
with the Dhaka Metropolitan area. Initially our main target customers are the
students those who are shifted from their hometown to Dhaka city due to their
studies and the people who have shifted here due to their job. The students need
a bed, Table, Chair, Book shelf, Fan and etc. But after completing their study or
when they get the hall facility they don‟t need their accessories anymore. So,
here “Furnapp” will work. It says that “No, need to buy luxurious furniture, pay
a little and enjoy a lot.”We will open our service for all types of people of this
area from the initial stage.

2. Market Size

Our strategy is to define our market size properly, which may not provide an
uncalculated amount of risk or loss. In the initial stage we define the Dhaka
Metropolitan as our market area. Because we all know that this area will help to
make us profit because people from different cities are shifting themselves here
every day for job purpose and study purpose. So, we think that the initial market
size is neither too much small to see the door of losses nor too much large to
handle.

3. Competitor

There are so many furniture and appliances companies exist in our country.
They sell their product all over the country. But we are going to invent
something new to this industry. We will rent these products to our customer for
a monthly subscription. So, we think that these branded or non-branded
companies may our indirect competitor but they cannot compete with us in such
a manner. Because they sell their product at a huge price like they sell AC at

Page | 6
huge price but this machine is not necessary for all the season, “Furnapp” can
provide this item in which season a person need and such a low subscription
like less than 1000 tk per month. That is why a middle class or lower middle
class people can also get the luxurious household accessories. So, we don‟t
think that these companies will be able to compete with us.

4. Estimate Market Share

As “Furnapp Limited” is a new business concept and it has not the direct
competitor, it can cover the whole market share and we also wish that.

(B) Marketing Plan

“Furnapp” has a unique marketing plan, which will help it to introduce the
feature of its service very soon to the whole country. It has some marketing,
pricing and promotional strategy. They are:

1. Marketing Strategy

Our marketing strategy is to start with the niche marketing. To capture the large
market we will go for the digital marketing to promote our business. Initially we
will contact with the landlords those who rent their flat. We can communicate
with our customers through them. To increase our revenue we will offer
different packages.

2. Pricing Strategy

According to our plan, our subscription fee will be reasonable that a person of
any status can take our services. Trust is the main component which we will
build in our customers‟ heart that though we will take reasonable subscription
fee but will give them the best service. Our promotional team will work there to
get their trust. Our strategy is to make small profit from a single customer but
we will cover a huge market to make huge profit in total. “Furnapp” will also
have some exciting offers. Those who will take our services in a package they
will get some discount, those who‟ll take more than one package they will get
more discount. For example, if a person takes 2 packages: Bedroom & Dining
room Packages he or she will get 18%discounts. We are also concerned for the
students. We will give discounts on their first payment. So that students can feel
more interested to get our services.

Page | 7
 3. Advertising and Promotion

Social networking sites are leading the marketing platform right now. So,our
strategy is to start with digital marketing. At first we will go with Facebook,
Twitter, Instagram and Google ad marketing. And this is so called budget
friendly strategy of us. After that we will come up with billboard, campaigning,
TVCs and other stuffs.

At the beginning we aim to reach 10000 people per day through our social
media pages and Google ad marketing, where we will promote our Facebook
page along with our own Website.

We already develop an exciting TVC which will be uploaded in the social

media very soon and it costs only 20000tk. From this all the users of social
media will get the information of new service of “Furnapp Limited”. They will
also be informed about the exciting offers and features about our service which
will attract them we hope. We will also go for guerilla marketing.

Section IV: Manufacturing and Operating Segment

 Location Analysis:

We believe location analysis is very important for any business enterprise. We

want to establish our factory come warehouse in Solmaid, Beparibari,
Notunbazar, and Dhaka. The main reason for selecting this place is that we can
rent this place at a very low cost from one of our relatives and most importantly
the place is very close to our suppliers and our niche market. So, it will save our
transportation cost. There are some other reasons for selecting Notunbazar for
our factory and those are as follows:

1. Supply of electricity is available

2. Supply of gas is available
3. Transportation system is very good
4. Law and order situation is excellent

 Production Needs:

We will use different kinds of equipment in order to make our production

process faster and simpler. For furniture manufacturing and repairing the
required tools are:
Page | 8
 1. Power jointer and thickness planer
2. Circular saw (for rough dimensioning)
3. Hand saw
4. Drill machine with different kinds of bits
5. Jigsaw (for cutting curves)
6. Combination square, tape measure, pencil and awl for marking
7. Sprayer

As we are going to buy second hand electronic equipment,so we will not need
that much costlyequipment. The equipment needed for repairing are:

1. Claw hammer
2. Different kinds of pliers
3. Wire cutter/strippers, multi screwdriver, adjustable wrench etc.
4. Voltmeter.

 Transportation:

For transportation, initially we are going to use one of our relative‟s pick-up
which is currently unused and needs repairing. So,we will bear the repairing
cost. After the establishment of our business we can buy new pick-up.

 Sources of Raw Materials:

Woods and melamine boards are the main raw materials for furniture. These
are found at a wholesale rate in Tongi area, Badda area. So, we are going to
collect our raw material from that area. For the second hand furniture and
electronic goods we will go Baridhara J block which is a huge market for
second hand product and very close to our warehouse/factory. On the other hand
all of our partner‟s will use our unused furniture.

Name Of The Suppliers Of Raw Materials:

1. Md. Saheen Islam (wood supplier); Office: Mill gate, Tongi.

2. Md.Mazharul Islam Bipu(board supplier);Office:Prembagan, Airport.
3. Md. ShelimurRahman( second hand product supplier);Office:Baridhara J
block.

 Labor Supply and Facility:

Page | 9
Labor supply is an essential element in a manufacturing process. So supply of
labor, their wages and other facilities are important. We will hire some skilled
labor for 2 months initially. The reason is we are actually renting our product
and if someone is interested in buying our product he/ she can buy them. So we
are not going to sell our product overnight. Keeping the labors for furniture
manufacture for a long time could be counterproductive. But we will hire some
labor for repairing electric goods.

Section V: Management Segment

Management is the administration of an organization. Management includes the

activities of setting the strategy of an organization and coordinating the efforts
of its employees (or of volunteers) to accomplish its objectives through the
application of available resources, such as financial, natural, technological,
and human resources.

 Management Team:

The management team is an essential part of every business. Furnapp‟s

management team is definitely capturing the strategy to reach its organizational
goal. Here the entrepreneur will play the top management position.They will
analyze and identify the business‟ goals and objectives and implements and
enforces the strategies the employees need to achieve success. We are four team
members are the entrepreneurs and owners of “Furnapp”. “Furnapp” has four
departments:

1. Finance Department
2. Supply Chain Management Department
3. Marketing Department
4. IT Department

1. Finance Department:

The part of Finance department of an organization is to produce financial

statements. Its primary responsibility, though, is to ensure that the company
optimizes its use of limited financial resources. Over time, finance employees
track spending relative to budgets and alert leaders to concerns. Faysal Sarker,
Page | 10
one of our entrepreneurs will handle this department. He wii be the finance
manager of “Furnapp”. Total budget and cost of the business is projected.

2. Supply Chain Management Department:

Supply Chain Management is all about the flow of our business. Md. Mehedi Al
JohabAbhi, one of our entrepreneurs will be the Supply Chain manager, as he
has the idea about the Supplier, Raw materials and our target Customer. This
information he gathered from his uncle, who hasa furniture business.

We believe that if supply chain is managed correctly, our business will be able
to provide our services fast and cost effective way to our customer.

Suppliers &
Warehouse Customers
Investors

3. Marketing Department:

Marketing department will partially be associated by Afrin Sultana, the CEO of

our company. She will associate the marketing strategy, research and analysis,
which will directly influence the size of manufacturing operations.
Mainly,she‟ll work as the coordinator of the total management team. She‟ll be
the key player in organizational decision making activities.

4. Information Technology Department:

The IT Department will play a pivotal role for our company. Md. Zihad Ahmed
will be the Chief Marketing Officer (CMO) and Head of IT Department. He is
working for a software company so he has better knowledge about IT sector. He
will manage our social media platforms and website.This department will result
a trendy marketing effect for the company.

Page | 11
  Legal Structure:

Ownership:

We, the five team members are the entrepreneurs and owners of the business.
Our total capital is TK 5, 00,000 and everyone will contribute the same portion

Owners Contribution (Estimated)

Afrin Sultana TK 2, 00,000
Md. Zihad Ahmed TK 75,000
FaysalSarker TK 75,000
Md. Mehedi Al JohabAbhi TK 50,000
Bank Loan TK 1, 00,000
 Organizational Structure:

Page | 12
 Section VI: Financial Segment (prototype)
1. Income statement

Pro forma Income Statement

Furnapp Limited
For 2019 to 2021

%change(19- %change
Revenues 2019 2020 2021
20) (20-21)
Renting furniture 110540 165200 178420 1.49 1.00
Renting appliance 54560 60000 81400 1.1 1.08
Sharing commission of
furniture 115320 213420 234240 1.9 1.36
Sharing commission of
appliance 45050 43050 52380 1.0 1.10
Other revenues 0 0 12100 1.22
Total Revenues 325470 481670 558540 1.5 1.16

Expenses
Supplies expense 12000 16500 23400 1.4
Utilities expense 36000 36000 36000 1.0 1.42
wages & salary expense 100000 120000 125000 1.2 1.00
website maintenance
expense 15000 15000 15000 1.0 1.04
Repairing expense 0 67400 66400 1.00
Transport cost 40000 65800 70500 1.6 0.99
Marketing expenses 20000 25000 62420 1.3 1.07
Rent expense 60000 60000 60000 1.0 2.50
Other operating
expenses 15000 42350 43000 2.8 1.00
Total Expenses 298000 448050 501720 1.5 1.02

Income Before interest 27470 33620 56820 1.2 1.69

& dep.
Depreciation expense 19000 23000 30000 1.2

Page | 13
interest expense 10000 10000 10000 1.0 1.30
Total Dep.& interest
expenses 29000 33000 40000 1.1 1.00
Net operating income -1530 620 16820 -0.4 1.21

2. Balance sheet

Pro Forma Balance Sheet

Furnapp Limited
For the year ended 2019 to 2021
Assets: 2019 2020 2021
current assets :
Cash 43420 40620 45980
Inventory supplies 15000 17400 21440
Revenue receivable 25400 32400 25000
Total current Assets 83820 90420 92420

Long-Term Assets:
Furniture 90000 104000 112500
Less: Accumulated Depreciation. -5000 -9500 13500
Appliances 100000 95000 106400
Less: Accumulated Depreciation. -8000 -7500 -9500
Equipment 43650 48500 51000
Less: Accumulated Depreciation. -6000 -6000 -7000
website 55000 55000 55000
Total long-Term asset 269650 279500 321900
Total assets: 353470 369920 414320

Liability & Owners equity

Loan from family member 120000 120000 120000
Expense payable 30000 44300 22500
total liability 150000 164300 142500

Page | 14
 Equity
Paid up capital by owners 205000 205000 205000
add/ loss from retained earnings -1530 620 16820
paid up capital by investors 0 0 50000
Total equity 203470 205620 271820
Total liability & equity 353470 369920 414320

3. Cash flow statement

Pro forma cash flow

FurnApp
For 2019 to2021
Items 2019 2020 2021
Cash at the beginning 3250 43420 40620
cash in-flows
Revenues 300070 449270 533540
Collection from receivable 0 24000 28500
Loan from family members 100000 0 0
Total inflows 400070 473270 562040
Total cash available 403320 516690 602660

Cash outflows
Supplies expense 27000 38500 45500
Utilities expense 41450 40000 42500
wages & salary expense 125000 135000 145500
website maintenance expense 15000 15000 15000
Repairing expense 0 67400 66400
Transport cost 40000 42000 55400
Marketing expenses 20000 25000 31500
Rent expense 60000 60000 60000
Other operating expenses 21450 43170 84880
interest expenses 10000 10000 10000
Total cash outflows 359900 476070 556680

cash position for the year ended 43420 40620 45980

Page | 15
 4. Break-even point analysis

7000000

6000000

5000000

4000000
rvenue
3000000 total cost
net income
2000000

1000000

0
2018.5 2019 2019.5 2020 2020.5 2021 2021.5
-1000000

NPV:
PBP:
IRR

Section VII: Critical Risks Segment

Potential Problems:

1. Trust
Since we are starting a new business, it will very difficult to build trust in
customers mind as well as in investors mind. So, trust issues are going to play a
vital role here.

2. Multiple Supplier
Since we do not deal with only one product, we have to work with multiple
suppliers. It will be very challenging to manage all the suppliers in different part
of the country for sourcing our product.

Obstacles and Risk:

Page | 16
 1. Financial Risk

Financial risk, of course, is the big one. New business faces significant financial
risk. A lack of startup funds poses a considerable threat to the business.

2. Legal Risk

Any capable entrepreneur starts out knowing the laws controlling his business.
Trouble is, laws can change. So, we have to keep in mind about the laws and
regulations of our country by considering the legal risk.

3. Operations Risk

One of the major risks of our new start up business is operational risk. So, we
have to consider this also. The risk that operating costs are greater than
budgeted, or that the service cannot be provided at the projected costs.

4. Management Risk:
The organizational structure of a new business or lack thereof, is another risk in
starting a new business. New business owners with little or no management
experience face significant challenges in running a successful company.

5. Volume/Demand Risk:

The risk is that the actual market‟s demand for our service will not yield the
projected sales volumes. So, we have to consider demand risk too.

6. Marketing Risk:
Marketing is essential to online business success. A service based business can't
succeed unless someone‟s taking the services. Even if we are not able to
conduct a good research, it may turn out customers don't feel interested to take
our services. Even if customers love our offerings, tastes may change or a new,
stronger competitor can start slicing market share away.

7. Depreciation of assets:
Every fixed asset has its depreciation. Since “Furnapp‟s” service is to rent the
household accessories, so it will have to face the depreciation of its assets. So,

Page | 17
the market value of the assets will decrease. So we have find and alternative
course of action.

8. Careless use of furniture by customers:

If our customers use our furniture and appliances carelessly, these may cause
damage to our product. We have to make a plan to reduce the risk.

Alternative Courses of Action

1. Improving Organization’s Image

It's an extremely important factor considering that without a website, blog, or
online presence prospective clients could begin to wonder how serious we are
about business. So, to improve our organization image we develop a strong
website, which will provide our customers and investors a clear view of our
organization. Our face book page and group will be faster responsive
tocustomers and investors to improve our organization‟s image.

2. Build Customer Trust

To build a strong faith to the customers mind we need to describe products and
our policy accurately. All the way through our site we must give the buyer
absolute confidence in our business. We could post customer reviews on your
site as people respond well to these as they trust the opinions of other
consumers.

3. Keep An Account Against Depreciation:

As we know that every fixed asset has its depreciation, so we will keep an
account against depreciation in monthly basis. So, we will not face extreme
losses at a time. We can cover the cost from the account.

4. Penalty for Damages:

If a customer makes damage to our product, he or she has to pay a penalty due
to his or her careless use.

5. Increase Company Responsiveness

Faster response time means happier clients. That‟s why if we increase our
response in delivering proposal, purchase order, order confirmation etc than it
will get more customer satisfaction.

Page | 18
 6. Provide The Best Quality Service:

If we are able to provide the best quality service, we can build trust in our
customers and investors mind so that, they will show their interest to take our
service, which will help to increase our profit.

7. Reach The Potential Investors:

Here the investors‟ means the potential furniture and electronics appliance
provider who wish to earn profit by investing their unused furniture and
electronics items because, we will rent those items, which our investors invests
in our business. So, we have to find out our potential investors.

Page | 19