business plan s&m group

Introductory page Name &Address of the company: S&M Garments Com. Ltd. 21, Tipusultan Road, Wari, Dhaka-1100 Description of the business: This business will provide the garments product on the basis to small and medium-sized business.service include we designe product and modles . By utilizing Virtual Design Center, we will work in real-time with our customers to meet their design needs, which will reduce errors and detect design flaws early in the process.

Additionally, our unique Virtual Design Center gives us a definitive advantage.

Financing: Titus Mold Manufacturing, Inc. requires 3,00,00,000tk. to launch. At present, we have raised 3,00,00,000tk. in venture capital funds. We are currently seeking funds from outside investors and business loans.

The start-up funds will be used to cover the facility, build-out costs, equipment, software and initial operating costs including payroll, taxes, and utilities.

EXECUTIVE SUMMARY COMPANY Titus Mold Manufacturing, Inc. designs prototypes and molds, which are used by production manufacturers to fabricate consumer products. We are a start-up company that developed and patented revolutionary design software called Virtual Design Center. Our initial plan is to create a precision manufacturing facility to produce prototypes and molds for clients. Our goal is to provide our customers with fast turnaround, exceptional quality, unparalleled customer service, and competitive pricing.

PRODUCTS & SERVICES We design and manufacture prototypes and molds. By utilizing Virtual Design Center, we will work in real-time with our customers to meet their design needs, which will reduce errors and detect design flaws early in the process. In turn, this will save the customer time and money. We plan to position ourselves as a forward-thinking company that continually invests in new ideas and technologies – unlike our competitors, which are similar mold

manufacturing facilities. Because of our unique software, sophisticated technology and efficient processes, we will be in a position to potentially compete on price and quality.

Additionally, our unique Virtual Design Center gives us a definitive advantage.

STRATEGY & IMPLEMENTATION To achieve our business goals, we will create a high-tech, precision manufacturing facility and will implement highly efficient operations processes. We plan to promote our proprietary Virtual Design Software with an aggressive, targeted marketing campaign. This will include a media campaign, print and online advertising and a targeted direct-mail campaign. In addition, we will focus heavily on establishing our presence within the industry at relevant trade shows.

MANAGEMENT Our leadership team currently consists of Chief Executive Officer Sokamal asha, President Mydul Islam. Additional key leaders will include directors of finance, marketing and sales, human resources, information technology and operations. While these positions remain unfilled at this time, we do have several extremely qualified candidates interested in joining with us in this new venture.

FINANCIAL PLAN Our Company will earn revenue from the sale of design services and manufactured molds.

The attached Income Statement demonstrates that our gross profit margin will exceed 52%, and we will achieve break-even with sales of XXX,XXXtk. We expect to reach profitability by the middle of Year 2.

LEGAL ENTITY & OWNERSHIP S&M Garments Com. Ltd. will provide All garments product. The company's principal owners are Sokamal saha, Md.mydul Islam who hold equal shares of ownership in the company.

COMPANY HISTORY TO DATE

Our company is a new business that will create prototypes and quality molds, utilizing the latest design software, e-commerce technology, high tech machinery and innovative operations processes. As the company's founders and owners After recognizing the need for and value of creating a more efficient customer experience to secure and retain business KEY ASSETS Titus Mold Manufacturing holds a patent for its revolutionary Virtual Design Center (VDC).

The VDC combines the best of virtual and in-person presentations and meetings, allowing customers to work in real-time with our design engineers. This allows us to serve clients nationwide.

Industry Analysis: Market Area and Size and Characteristics Market is a collection of buyers and sellers, where buyer share a particular need or want that can be satisfied by a company’s products or services. Every business sells some type of product or service to people. Not every buyer will buy every one’s product. People who can be counted as potential customers are divided into three categories: •

People who need or want the service or products

•

People who are able to buy the services or products

•

People who are willing to buy the services or products

Market Area: Market area is the most important marketing considerations to thoroughly know and understand the potential customers. As new entrepreneurs we have to analysis that in which area we can target for our potential customers, how many they are what actual services or product they want, why and when they want and so on. For our Traxcom Knitwear business the potential market will be in North America such as USA, Canada and Europe. As the preliminary stage our market area will not be so large but we are optimistic to increase our market area step by step in near future.

Market Size and Characteristics:

As market size will be large it will be flexible to do business. There are four type of market size exists in a country.

Monopoly market: here only one company exists in a market.

Duopoly market: here two companies exist in a market.

Oligopoly market: In oligopoly market system more than two companies exist in the market.

Perfect Competitions: This type of market system is practiced largely. In this system every one can do business free and fairly. Business can be flexible in perfect competition. The overall market condition remains stable in perfect competition.

As new entrepreneurs of NTRS energy savings bulb business our market size will not be so large. Approximately 600000 units of product will be sold in 2011. Then will try to.increase the number production unit double in the next year.

Description of the Product Basic T- Shirt: Normal T – Shirt that means which have only color like white, red, black, green etc. In this T-Shirt we are not using any kind of design.

Polo Shirt:

Which T-Shirt those have no round collar only using collar. In this

T-Shirt we are using different kind of color and also design.

Tank Top:

Tank top includes in ladies collection. We are using different design

and various kind of color both light and dark color.

Shorts:

We have two types of shorts. Ladies and gents. In here we are using

different design and color to attract the customer.

Trousers: both ladies

We made and gents trousers.

Trousers and shorts are not same type or same size.

Tops: Tops are ladies and kids wear. These are different in color and design. In here mainly we are using light color like pink, blue, yellow etc.

Baby Sets: We are also made baby sets which are very soft. In here we are using mainly light Color like pink.

Customer Our main target customers are North American and European buyer. In North America, Canada and America is our main customer. On the other hand, In Europe, England, France, Germany, Italy, Nominee, Check Republic, Denmark etc are the buyer.

We have two types of customerDirect customer: Direct customers are those customers, who buy our product directly via L/C and don’t have any middle man in between.

Indirect customer: Indirect customers are those customers who buy our product indirectly via buying house.

Here, buying house get some commission gives the L/C in the name of the company.

Name of buyers

Name of buying house

Country of origin

Remards

H&M

H&M

Sweden

Direct

Kiabi Wall mart Addidus Next Jackpot Zava Amcom

Tritox texle ltd Fashion maker World of texlite Vsage Ic company Zava Am com

France Canada Germany UK Denmark Itally Canada

Direct

Competitor We will find to different kind of competitors here. One is the local competitors and the other is the international competitors. Our local knitwear company is our local competitors like: Nasa Knitwear, logos knitwear, mondol knitwear etc. Our international competitors are china, India, Hong Kong, Vietnam, Indonesia, Pakistan etc.

In here we have some advantages. LikeChina: Right now China is shifting to the luxuries product. They have no interest on knit wear business any more. This is an advantage for us. So, we might capture some more new market which is right now capturing by the China.

India: In India, there product price is relatively high compare to Bangladesh. One the other hand, there product quality not so good again compare to Bangladesh. As a result we might get some competitive advantage here.

Pakistan: Right now Pakistan is facing political problem. As a result, no buyer is interested to invest in Pakistan.

If our diplomacy with other country is good we might enjoy some benefit. For example: Quota system. In early age of 2000 Canada gave us quota benefit, where our business organization has to buy the quota. So, we have to make strong diplomacy policy with North America and European country to enjoy this kind of benefit.

Marketing Mix Strategy Marketing mix is the set of marketing tools that the farm uses to pursue its marketing objectives in the target market. As a new entrepreneur we will try to utilize these marketing tools in a proper way.

Figure: Marketing Mix

Product The products of S&M Garments Com. Ltd include: trouser, t-shirt, polo shirt, under wear etc. Here we will try to maintain the best quality and design of the product according to the customer’s requirement. Our product will be available in different sizes, such as extra large, large, medium and small sizes. In case of packaging we will try to maintain well designed package to increase the promotional value. Usually we will not provide any warranties for our product, but if there is any problem in our product then we will try to adjust it with the next shipment.

Price While setting the price, we will try to cover the price in such a way that must have acceptable to the customer, must have competitive with similar products and will cover the cost. For our product the list price will start from $ 1 to $ 30 .It can vary from product to product. We will also provide discount system; it may be occasional discount, seasonal discount, and discount for regular buyers and so on.

Place For our knitwear products, we will have no distribution channel. We will hire cargo and directly put it to the ship. It will be our distribution channel. More over us will set the appropriate location for our product. In case of inventory we will always keep 5% of product in the warehouse in case of shortage and surplus. The transportation, our company will use to reach the target customer will be cargos and ships.

Promotion We will provide different types of short term incentives to encourage the purchase. By building good relations with the company’s favorable publicity, building up a good corporate image and handling unfavorable events we can increase the promotion for our product.

Critical risk and Assumption Here, we will discuss about the risk our business might face. We have to try to minimize it as much as possible.

Competitor risk: Competitor always risk for an organization. It is true for international business or local business. In here we might face competition by local company or by the international parties.

•

Local company

•

International parties

Local company: We have a lot of Knitwear Company in our country. If we face competition by them, that refer to local company competition. For example: Nasa Group, Mondol group, Logos etc.

International parties: If we face competitor by the other country like: China, Vietnam, Hong Kong etc. That goes to country competitor or international parties’ competition.

Quota Risk: It is directly effect to the price & quantity of the product that refers to non-tariff Barriers. In 2004, USA & CANADA had a Quota system. They said that they will import a fix amount of product each year from Bangladesh and our business organization used to buy it. But now we don’t enjoy this benefit anymore.

Political risk:

We might face political risk when we involve in international business. Here we have to talk about two parties. •

Local political risk

•

International political risk

Local political risk: We see sometime political party put presser in the Business organization for their own benefit we need to calculate that all the time.

International political risk: If two countries government make decision that they will not do business with each other and also government does not allow to do business with other country our business might be effected.

For example: Israel, we are not allowed to do business with Israel.

Economic risk:

Right now the whole world is facing the economic crisis. It also heavily affects the international business. We see that people does not have enough money in their hand so they can not purchase the product.

Price risk: People do not have enough money so their purchasing power decreases. As a result our product price also decreases but still people are not buying the product. Right now the whole world is facing the price risk.

Demand risk: Day by day people demand is decreasing because they don’t have money in their hand. For example: we read an article in internet where I find that whoever used to buy 10 T-shirt now they are buying 3 or 4 T-shirt.

Market risk: We heavily depend on North America & European market. Now their demand decreases. So we are facing the Market risk. Here, we have to find the new market to minimize the market risk.

Suppliers risk: Suppliers form an important link in the company’s overall customer value delivery system.

They provide the resources need by the company to the product its goods and services.

Supplier problems can seriously affect the organization. Organization managers must watch suppliers problem such as (supply shortages or delays, labor strikes and other events can cast sales in the short run) that it may not create risk of the organization.

Inflation risk: Inflation is very much related with economic growth of a country. High inflation create problem for economic growth. If we can minimize the inflation rate that will help us to do the economic growth it also affected the international business. So we have to minimize it as much as possible.

Currency risk:

We are doing international business .As a result we have to deal with international currency .It might fluctuate more than we expected some time. We have to set a price for currency with the bank so that we can minimize the currency risk.

Investment risk: Any investments for a new business always hold the risk. As investment is high risk will be also high. So the company should take better investment decision and have to have risk taking capacity.

Culture risk: Culture refers to the learned norms based on attitudes, values and beliefs of a group of people because people simultaneously belong to different groups that have different culture and most of the culture are interrelated various aspects. If we don’t know the culture of each other we might face lot of problem to do business.

Management risk: Many management problems and issues can be approached in ways that are rational, logical, objective, and systematic. Managers can gather data, facts and objective information quantitative model and decision making techniques .If the management can not make right decision or adopt decision making skills organization can fall management risk.

Marketing risk: Right now we are facing the marketing risk. The buyer is not placing the order so companies cannot get the order from the market that really creating big problem for the companies.

Worker risk: If the worker does not perform their work properly that might create huge risk for the company. If worker goes against their employer that is main risk for the organization.

Financial statement: Some country government wants the financial statement once in a year some government want it twice in a year and also three times in a year .It might increase or decrease the cost of the organization so we have to think about it too.

Partnership Risk: Here, we might face problem by the partners too. We have to keep in mind that and try to minimize that as much as possible Environment risk: The wastages of our product make create problem for the environment and it make create problem for the organization.

Social risk:

As a business organization we can not do any thing that create problem for the society and society people. If we do so we might face problem by the social interest group, politician and public etc.

Contingent risk: Contingent refers damage to property. Such as Due to fire, Due to accidents, Due to floods, Buildings failures, Automobile \Vehicles, Machinery, fixtures, Materials stocks, Due to burglars\thefts. So if thus things are happened it may create risk for the organization.

Compensation and Ownership PARTNERSHIP DEET Name & Address of the Firm:

S&M Garments Com. Ltd.

334, Elephant Road (2nd Floor),

Corporate address:

Telephone: 02-966011 Mobile: 01717-425855 Dhaka-1205.

Factory address:

21,Tipusultan Road,Wari,Dhaka-1100 e-mail: S&M@yahoo.com Tel:028124962,029133468 Mobile:01918979240, 0191566116

Name & Address of the Partners: •

Name: Sokamal saha

Fathers Name: Address: •

Name: Md.Mydul Islam

Fathers Name: Address: Type of Business: It’s a Two man partnership business. Production item is basic t shirts, polo shirts, tank top, baby sets, ladies wear etc.

The amount of investment by the partners: NAME Md.Mydul Islam Sokamal Saha TOTAL

CONTRIBUTION IN (TAKA) 15000000 15000000 30000000

Profit and Loss shared by the partners: The profit and the losses will be distributed to the partner equally.

NAME RATIO Md.Mydul Islam 50% Sokamal Saha 50% TOTAL 100% Monthly a partner can withdraw 30000 taka. So it will be yearly 360000 per person The duties and responsibilities of the partners: The limitation of the action of each partner can take without the consent of the firm: If any person go abroad, sick, or go for a holiday, on that situation the person will give his/her responsibilities to the other director. And that person’s decision will be final on behave of that person.

Method for Arbitrating and Resolving Disputes: Major and minor problems will be solved by the partners. The decision will be taken by the partners by taking vote. The majority of the decision will be taken. For example: we have five partners. If three partners take the same decision and other two are not agree, the three partner’s decision will be taken.

Process for dissolving the partnership: 

We will dissolve the partnership because for the following reason.



If any partner file bankrupted



If any partner cheat with the firm



If any partner died



If any partner will become mentally disorder



If any partner want to sell his/her partnership



If any partner want to transfer his/her partnership.



If any partner sell his/her share to other person, without give announcement to the partners.

Partner’s per-emptive right: If any partner want to leave form the firm. He can give his/her partnership to his/her sun, daughter, wife, brother, sister. Or his partnership can distribute equally to the partners. Or any individual partner can buy his/her partnership share.

Process for Expelling partners Fairy: •

If any partner will bankrupted

•

If any partner cheat with the firm

•

If any partner will cross the money withdraw agreement Cash Requirement S&M Garments Com. Ltd.

Fixed cost Land

Variable cost 20,000,000

Raw material cost

Building

25,000,000

Factory overhead cost

Machine

15,000,000

Office Stationary

1,000,000 1,200,000 100,000

Generator

500,000

Bills (telephone, gas,

Boiler

600,000

water etc.)

200,000

Repairing costs

100,000

Furniture

6,000,000

Ac

100,000

Knitting

Fans

60,000

Dying

5,000,000

Lights

40,000

Accessories

1,500,000

Fixed Deposit Insurance Salary

5,000,000 10,000,000 5,000,000

Yarn Lucre (yarn)

1,000,000

10,000,000 2,000,000

Electric wave

50,000

Computers

100,000

Television

35,000

Fridge

30,000

Fax

20,000

Total Fixed Cost

87,535,000

Total Variable Cost

22,100,000

Total Cost = Fixed Cost + Variables Cost = 87535000 + 22100000 = 10963500 Breakeven Analysis S&M Garments Com. Ltd.

Selling price = =

$

Tk.

2 *

68

136

Variable cost per unit = Variable cost / unit produce

Break even quantity

=

22100000 / 505000

=

43.76237624

= Fixed cost / (Selling price-Variable cost) = 87535000 / (136-44) = 951467.3913 units

To reach the breakeven we have to produce 951467.3913 units

S&M Garments Com. Ltd. Income Statement At the year ended December, 31 Amount in Tk.

Particulars

2010

Sales

68680000

COGS

-22600000

2011

81600000

2012

2013

2014

136000000

204000000

231200000

-27120000

Gross Margin 66420000

-36612000

54480000

-49426200

-66725370

154573800

164594630

99388000

AdminExpense -40000000

-42000000

-50000000

-65000000

-78000000

Selling Expense -10000000

- 12000000

-18600000

-21460000

- 24606000

EBIT

4800000

30788000

68113800

61988630

TAX(25%) Net Profit

16420000 4105000 12315000

1200000 3600000

7697000 23091000

17028450 51085350

15497157 46491472

S&M Garments Com. Ltd.

Cash Sales Accounts Receivable Sale of fixed assets Other cash received Total cash in Cash Disbursements Management salaries and other salary Legal & audit fees Utilities (heat, light & water) Repairs & maintenance Insurance Payment on purchase of fixed assets Income tax payments Payments on acc. pay./ Inventories Add: Cash in Deduct: cash out Surplus or Closing cash balance Ending balance

2010 68680000 8000000

2011 81600000 8000000

2012 2013 2014 136000000 204000000 231200000 10000000 20000000 12000000

200000 500000 77380000

300000 520000 90420000

450000 670000 720000 850000 1000000 1070000 147300000 225670000 232579000

40000000

42000000

50000000

65000000

78000000

100000 200000

1000000 220000

1200000 300000

120000 530000

1200000 570000

100,000

130000

270000

340000

360000

700000 250000

700000 250000

700000 250000

700000 250000

700000 250000

4105000

1200000

7697000

17028450

15497157

2842500

3516000

1262000

1500000

1254000

77380000 48297500

90420000 49016000

147300000 225670000 232579000 61661000 85468450 97831157

29082500 41404000 85639000 140201550 134757843 CASH FLOW STATEMENT

S&M Garments Com. Ltd. Balance Sheet Year ended December, 31 .

Particulars

Amount in Tk

Liabilities and Owners Equity Assets Current Assets Cash

40000000

Account Receivable

7000000

Inventory

1005000

Fixed Assets Land

20,000,000

Building

25,000,000

Equipment Total Fixed Assets Total Assets

16270000 61270000 109275000

Liabilities Current Liabilities Accounts Payable

2842500

Notes Payable

6432500

Total current Liabilities

9275000

Long Term Liabilities Bank Loan Shareholder’s Equity

70000000 30000000

Total Liabilities and Owner’s Equity

1092750000

S&M Garments Com. Ltd. Balance Sheet At the year ended 2011-2014 Dec 31

Asset Current asset: Cash Account Receivable Inventory Total current asset Fixed asset: Land Building Equipment Total fixed asset Total asset Liabilities Current liabilities Account Payable Notes Payable Total current Liabilities Long term Liabilities Bank Loan Shareholder’s Equity Retain Earnings Total long term liabilities Total liabilities and owner’ equity

Year 2011

Year 2012

Year 2013

Year 2014

45000000 8000000 2000000 55000000

46000000 10000000 1500000 57500000

55000000 10000000 6492000 71492000

63000000 12000000 8000000 83000000

18000000 2250000 13016000 53516000 108516000

16000000 20000000 9762000 45762000 103262000

14000000 17500000 6508000 38008000 109500000

12000000 15000000 3254000 30254000 113254000

3516000 10000000 13516000

1262000 12000000 13262000

1500000 13000000 14500000

1254000 12000000 13254000

60000000 30000000 5000000 95000000

50000000 30000000 10000000 90000000

40000000 30000000 25000000 95000000

30000000 30000000 40000000 100000000

108516000

103262000

109500000

113254000