Business Plan

Vanguard Enterprise Solutions

Submitted by Ali Iqbal Murshed 0810028 Kazi Tanvir Ahmed 0830054 M. Hasan Tawfique 0830126 Pritom Kumar Saha 0820540 Samiul Haq 0930163 Najmin Naher Moon 0830240 Anusha Ali Khalid 0920779 Submitted to Md. Ali Arafat Faculty Lecturer School of Business Independent University, Bangladesh

02/08/12

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Table of Contents
Executive Summary................................................................................................ 3 Business Description .............................................................................................. 5 Product & Service .................................................................................................. 6 Business Environment Analysis .............................................................................. 8 Industry Background ............................................................................................ 10 Competitive Analysis............................................................................................ 12 Market Analysis ................................................................................................... 14 Sales and Marketing Plan ..................................................................................... 15 Operational Plan .................................................................................................. 20 Management Summary ....................................................................................... 20 Financial Plan ....................................................................................................... 21 Loan Proposal ...................................................................................................... 26 Reference ............................................................................................................ 27

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Executive Summary
Development of Vanguard Enterprise Security software will begin in January of 2014 and the first version will be released for beta testing within July 2016. It will be developed to significantly improve the way todays businesses are able to protect their digital information from theft and leakage. With the rapid growth of fear in relation to digital piracy, computer hackers and infectious viruses, the product offers tremendous advantages to professional business managers, as well as the thousands of other employees assigned with the responsibility of handling valuable company data on a day-to-day basis.

Vanguard Enterprise Security will be positioned as a high-end software and hardware installation package that enables project managers to monitor, maintain and secure their company database via proprietary state-of-the-art technology. There is currently no other company that is capable of providing these types of services with the set of features we plan on developing.

It will be packaged and sold in retail markets and outlets where computers and digital equipment are sold, through traditional online software vendors, through the official Vanguard Enterprise Security company website and will also be sold through targeted direct mail campaigns.

The potential market for the product is very promising as well. Kaspersky Lab, the world famous internet security solution provider, conducted a study in 2011 that revealed the level of computer infections (both in home & business) being reported by users in Bangladesh to be as high as 92.6%. Recently in Bangladesh Grameenphone has been working with Karpersky Lab in order to develop an IT protection system called the Enterprise Security Solution, which will accomplish everything that we plan on doing. This year, the government of Bangladesh has also managed to set up the Bangladesh Computer Security Incident Response Team (BD-CSIRT) that will be in charge of monitoring the countrys digital space for any suspicious activities that might be considered a threat to national security and also providing useful security solutions to organizations that demand it.

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Our financial projection for Year 1 is a net loss after taxes of 5,293,000 taka. Year 2 is projected at a net profit after taxes of 3,665,000 taka. Year 3 is projected at a net profit after taxes of 13,341,500 taka .We will be requiring an amount of 5,06,80,000 taka as loan from banks that preferably deal with small-medium enterprises and also provide suitable loan repayment schemes (e.g. BRAC Bank or Trust Bank). A certain portion of the investment is going to be derived from the strategic alliance agreement between us and Symantec Industries. Studies have shown that banks respond positively to loan appeals once they observe that the owners have substantial investments from partnerships formed internationally in the business.

The Management team members will have strong backgrounds in both computer hardware and software development. The CEO will be the former Business Development Officer from a reputed IT sector Company, the VP of Product Development will be formerly the Chief Software Engineer, the VP of Finance, and the VP of Marketing will be formerly the Sr. Marketing Director from a software development firm. The 5, 06, 80,000 million we are seeking will be used to begin production, packaging, and marketing, and for short term capital and overhead needs.

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The Business Description

Business Concept Vanguard Enterprise Security has produced a top-notch product that fills a gap in the business information and IT securities market. Current business security software in the local market does not come close to encompassing the features that Vanguard Enterprise Securitys product encompasses. Our software will not only allow the user to update and track progress on protection measurements via proprietary technology, but will also import real-time data from other businesses that utilize the same protection software packages. The Vanguard Enterprise Security's software along with its supplemental hardware component is intuitive and fully featured and will hopefully increase in popularity once launched in Beta testing.

Mission Statement To provide the most cutting edge IT security services to industries and organizations of the country in dire need for protection; while striving to develop the industry and make technological breakthroughs for future generations to the best of our ability.

Business History There are competing claims for the innovator of the first antivirus product. Possibly the first publicly documented removal of a computer virus was performed by Bernard Fix in 1987. There were also two antivirus applications for the Atari ST platform developed in the same year, one was the G Data and the other was UVK 2000. Fred Cohen, who published one of the first academic papers on computer viruses in 1984, began to develop strategies for antivirus software in 1988 that were picked up and continued by later software developers. Before internet connectivity was widespread, viruses were typically spread by infected floppy disks. Antivirus software came into use, but was updated relatively infrequently.

During this time virus checkers essentially had to check executable files and the boot sectors of floppy disks and hard disks. However as internet usage became common viruses began to spread online. As always-on broadband connections became the norm, and more and more viruses were released, it became essential to update virus checkers more and more frequently. Even then, a new zero-day virus could become widespread before antivirus companies released an update.
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Current Market Situation The developers and visionaries of Vanguard Enterprise Security will be working on the product from January of 2014. The first six months included research into the project management software market and the PDA markets. The information gleaned from that research laid the foundation for the key features of Vanguard Enterprise Security. The programmers of the product will begin to work in April of 2014 and the product will go into beta testing in July of 2016. The reviews and feedback from beta testing have indicated an excellent acceptance level for the product, and therefore, funding is being sought to get the product finalized, packaged, and into the market.

Objectives Our objectives are going to be:

1. To hold 20% of the security software market for the IT industry by January of 2014. 2. To see a positive ROI by January 2015. 3. To hold 20% of the security software software market for the Telecommunications industry by January of 2016. 4. To hold 20% of the security software market for the Business and Finance services industries by January 20017.

The Product and Service

What we plan on offering the market is a full-fledged security software solution that will help protect the electronic databases and servers of any organization or institution from external attacks as well as information leakages. Our firmware along with complimentary hardware installations will ensure that organizations, relying on advanced technological components to conduct crucial business activities, are able to secure their valuable digital data from being hacked or infected by digital viruses. Our services will range from installation and maintenance of security servers to providing complete training programs for management employees on IT security measures.

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Vanguard Enterprise Security software offers five specific versions that, while still being totally customizable, are also specifically targeted to groups such as IT, Finance, Manufacturing, and Telecommunications. This specialization will make setting up new databases less time consuming because the framework is already in place. Other innovative features include the capability for saving customized formats as templates for use in other similar businesses. We are also not going to limit our business objectives by simply following a Business-to-Business (B2B) model but plan on expanding towards mass-market consumers with generic antivirus software for personal computers.

Features & Benefits

Protection and encryption of large amounts of bulk data that is not achievable through generic antivirus software. Protection against the threats of hacking or theft of highly valuable and confidential information from company databases. Protection from virus infections that simultaneously break down all connected devices and spread through digital imprints in the form of e-mails, e-advertisements etc. Unique feature also includes the ability to provide backup support for bulk data in case of complete system failure. Transferring of data and information from device to device through secure digital channels built and encrypted for maximum fortification.

Product Line

Peer-to-Peer Package Client-Server Package Single-Host Package

The product and service we are planning to deal with is very technical-intensive in nature and the modes of operation are somewhat new to the market and industry. The first step of setting up a virtual security platform is to develop a Total Control Protocol (TCP/IP) and File Transfer

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Protocol (FTP) Server application that will be used in conjunction to a stand-alone physical server drive.

Business Environment Analysis

Political

Sociocultural

Economic

Vanguard

Technological

Legal

Environmental

Figure 1: PESTEL Analysis of Vanguard

Our idea is unique to the market we are planning to enter and we have managed to conduct an analysis of the environment in which we plan on operating our business. The analysis has generated the following outlook on environmental scenarios:

Political Context:

Politically the environment is slightly unstable. There have been severe instances in the past of collision between the two major political parties of the country, Bangladesh Nationalist Party (BNP) and the Awami League (AL). Most business activities are

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negatively affected by the constant level of strikes that take place both on nation-wide and regional levels. However the current government has been very progressive in their approach to the digitization and technological sophistication of the entire countrys administrative structure. For this reason the current government has become a strong advocate for technology based businesses and is providing strong support to entrepreneurs who are attempting to develop the technological infrastructure of the nation. The current taxation policy is extremely flexible that favor businesses related to IT industry. The import policy for electronic equipment consists of a mere 6.25% tax allocated to each single unit of goods being brought in. This is a very subliminal amount being charged for importing goods in comparison to other products, such as automobiles, and government has imposed several incentives for business to business operations.

Economic Factors:

Economically the country is stable and gradually developing. Purchasing power of the consumers has gone up significantly over the last five years and there has been sudden rise in the middle class segment as income levels have gone up considerably.

Businesses have been flourishing in the recent years and the garments sector has seen a massive upsurge in its reputation worldwide. The technology and IT based industry is growing with significant pace and several incentives provided by private MNCs have further boosted development in the industry.

Sociocultural Factors:

Demographically the population of the country is mostly distributed in the rural areas with a comparatively small portion residing in the urban cities. However this specific group of people residing in the cities constitutes the highest portion of consumers contributing to the countrys GDP.

Lifestyles have drastically changed for the urban population over the years along with an increase in living standards. There has been a great deal of Western ideologies having influenced the way of life for urban and suburban population of the country. This has

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generated a great deal of consumption and demand for technology over the last few years. All the most high-end technological products have found a successful and loyal consumer base within the mainstream markets of Bangladesh.

Technological Factors:

The technological infrastructure in the country is not solid enough but is gradually improving as both private and public sectors are working towards sophistication. The government has already managed to launch this year a special unit dedicated to the monitoring and protection of the national internet grid space called the Computer Security Incident Response Team (CSIRT).

The recent introduction of 4G technology through the WiMAX internet services has boosted the growth of technology in the country. There are also initiatives being taken by the government to launch official licenses for 3G networking within Bangladesh.

Environmental Factors:

Environmental protection laws are not strongly enforceable in Bangladesh. There are several independent environment awareness agencies but no holistic level of resistance exists. Therefore environmental and waste disposal policies are weakly enforced and many businesses choose to avoid these measures.

Legal Situation:

The legal system of the country is filled with instability and uncertainty. Corruption is a deeply serious problem in the administrative system and there is a major tendency for businessmen to manipulate legal structures for illegal personal gains.

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Industry Background

The ICT sector of Bangladesh is one of the fastest growing sectors of its economy. The Government has declared ICT as the thrust sector. Realizing the importance of ICT, the name of the Ministry has been changed from "Ministry of Science and Technology" to the "Ministry of Science and Information & Communication Technology. The Government organization entrusted for the development and promotion of the ICT sector is the Ministry of Science and Information & Communication Technology. Bangladesh Computer Council (BCC), the apex body for promotion of all kinds of ICT activities in the country, works under the Ministry of Science and Information & Communication Technology.

The Government of Bangladesh has given immense importance to ICT for development (ICT4D) for economic growth and poverty reduction. To develop this sector, the government has taken several projects and programs, formulated legal frameworks to implement the Declaration of Principles and Plan of Action of WSIS process. The committee is holding regular meeting, agenda consultation, sharing of information to keep themselves prepared to play the right role in the process for the second phase. The following table shows the present status of MOSICT activities according to Declaration of Principles and Action Plan of WSIS. Mostly all 50 Software Developing Houses in Bangladesh have worked with proprietary technology like MySQL database server, PHP, Perl, Apache web server etc.

More than 25% of Total 21 Public and 51 Private Universities, which producing 6000 ICT related graduate every year in Bangladesh, have contributed massively to technology development. Bangladesh University of Engineering and Technologys (BUET) Institute of Information and Communication Technology (IICT) took the leading role to promote ICT development among academics and industries with BANGLA-IT joint initiative. Different universities are already taking initiative for extensive use of technology in their practices and more than 50% government ministry offices have begun to utilize technologies like digital administration software and MySQL databases.

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Competitive Analysis

Factor

Me Main product is complete 360 Degree corporate IT protection software & hardware. Alternate product is antivirus software for mass consumers. The corporate IT security package will cost around BDT 6 Lakhs including hardware installation. Annual fee of BDT 50000 for after sales services. The antivirus will be sold at a retail market price of BDT 2000. Product & service quality will be ensured through strict quality control guidelines.

Strength Highly customizable product range with unique service features that have yet to be available in the market

Weakness

eScan

Kaspersky Internet security and antivirus software. Attempting to introduce new Enterprise Security Solutions with Grameenphone

OSS

Importance to Customer

Product

Servers consume large amounts of energy and disperse a lot of heat

Internet security and antivirus software for mass-market consumers

Open Source Software that are available for free on the internet

Price

Price and overall costs are cheap compared to alternatives that are provided by external markets

Prices may seem expensive to industries not seeking to invest upon such areas

Price for software ranges between $29 $46

Price for software ranges between

Freeware

Quality

Strong quality maintenance guidelines with help from experienced

Quality of service depends on infrastructure

Good perceived quality of product

Very high perceived quality of product

Average perceived quality

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partner

Service

Expertise

Services include hardware installation and after sales services like maintenance and training programs. Highest technical expertise required to develop firmware and technology updates. B2B business with direct interaction to clients Billboards, printads, TVCs & online website sponsors

Solid after sale services that include semiannual maintenance and repairing plans Highly skilled software developers consistently conducting R&D Direct supply chain with client organization Solid initiatives towards brand promotion

Difficulty with after sale services because of geographical context Difficult to find local talent without added training programs Lack of logistical infrastructure Inadequate market links to ensure brand familiarity

Product warranty and exchange policy

Product warranty and exchange policy

No after sale services provided

No expertise in the country

R&D expertise brought in the country Direct retailing vendors and about to start B2B operations Online ads, printads, billboards & TVCs

No expertise in the country

Sales Method

Direct retailing vendors

Online download

3.5

Advertising

Online advertisements

No advertisements

Ranking Criteria: 1 (Critical) - 5 (Not Important)

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Market Analysis

Market Size & Growth The IT industry in Bangladesh has grown rapidly since the 1990s. However, the industry remains in a perpetual state of infancy since then, and the value of exports have actually declined slightly in 2007. While the decline in export value in 2007, as seen in Figure 1 below, was partly impacted due to the change in accounting method in 2006, it is still an alarming trend, considering the global IT/ITES market has been expanding and there is still a significant untapped market for Bangladesh to capture.

Export Value (US$ in Millions)

30 25 20 15 10 5 0 2002-03 2003-04 2004-05 2005-06 2006-07

The IT industry in Bangladesh, especially the IT/ITES industries, is relatively small compared to the size of the national population of 160 million, and the size of national economy at US$65 billion GDP in 2006. The statistics indicate that the IT/ITES industry in this country have been rapidly growing since 2002, but has floundered in recent years.

According to the BASIS survey in 2006, the total size of the IT market, excluding telecom, in Bangladesh was estimated to be US$300 million, out of which the IT/ITES industry share contributed to 39% or US$117 million.

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More than 400 IT/ITES companies are registered in Bangladesh and employ over 12,000 ICT professionals. Export earnings from IT/ITES were USD 27.01 million in the fiscal year 2005-06 registering high growth of 113% from the previous year (2004-05). However, the growth rate has been negative in the years after and this could be due to various reasons, including the political instability and subsequent state of emergency which lasted for two years until it was lifted in December 2008, and the change in Bangladesh Banks accounting methodology.

The major export market is North America, but recently many IT companies started export to EU countries and East Asian countries, especially to Japan. About 100 companies export their products, and at least 30 of those companies are established through joint-venture with an overseas company or as an offshore development center (ODC) with 100 percent foreign capital. Most of these companies started their operations within the last two or three years, indicating that the Bangladesh IT/ITES industries have started to be focused overseas.

The global IT/ITES market continues to grow and due to its large market size, there is huge potential for any country or competent company to grab additional market share. While several Bangladeshi companies have already been successful in penetrating the global IT/ITES market, generally, there has been a lack of concerted effort at the national level to develop and launch an aggressive and coordinated plan to support further expansion of Bangladeshi interests. Many emerging competitors such as Pakistan have succeeded in expanding their profile in the IT/ITES market, despite the challenges, due to their strategic national planning targeting this industry. The negative growth rates during the year 2006-2008, as seen on Table 2 above, indicates that unless Bangladesh addresses some fundamental issues, this downward trend may continue.

Sales and Marketing Plan

Vanguard Enterprise Solutions will be initially positioned as a premier product that caters to data security needs for both businesses and individual users. Therefore the target market for the company comprises of
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1. Businesses 2. Personal Computer Users

Product Vanguard has two main products which are shown in the flow chart below.

Products

Server

Software

Dedicated Server

Shared Server

Specialized Security

Antivirus

These four sub-categories of products will be combined to form four service offerings. Two of these are directed towards the businesses and two for home users. Businesses Plan A Plan B Home Users Plan C Plan D Dedicated Server + Specialized Security Software Shared Server + Specialized Security Software Shared Server + Antivirus Only Antivirus

If a business chooses to subscribe to plan A, a client server will be stationed at the place of business installed with the specialized security software. This is basically for the larger businesses which need dedicated servers due to their sheer size of data and can afford one. For SME plan B Is more suitable since, this allows the business to get connected to a shared server assigned for 4 other companies. This means that in total of 10 companies will share one server.

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Home users can pick from plan C or D. Plan C is where a user subscribes for both server connectivity and antivirus software. In plan C, 100 individual subscribers will be connected to one single server. A user, regardless of being business and home user, can also select their own combination and thus have customized service offerings.

Price Product Plan A Price 5,00,000 (server) + 50,000 (software) + 50,000 (installation) = 6,00,000 Plan B 60,000 (server) + 50,000 (software) + 10,000 (installation) = 1,20,000 Plan C 3000 (server) + 2000 (antivirus) + 1000 (installation) = 6,000 Plan D 2000 (antivirus)

Plan A, which is designed for businesses, will cost the user 600.000 taka. The price for the server is 500,000 and the specialized software together with installation cost will amount to 100,000. Business consumers will enjoy 1 year of free maintenance, after which they have to pay 50000 taka every year for maintenance and software upgrades. Plan B users will have to pay 15000 for maintenance and software upgrade cost each year after the first year of subscription. Plan C users will have to pay 2000 taka year after the first year for maintenance and software upgrades. To continue getting regular upgrades and modifications after year one, Plan C user will have to pay an additional 1500 taka.

Place Both direct and indirect channels will be used for distribution. Initially for indirect channel distributors and retailers will be chosen in the divisional cities only. For Plan A & B users the distribution channel will be a direct one. Businesses will only have to contact the head office via email or phone calls and ask for the intended plan. After that a team of technicians led by an engineer will visit the business sites and install the servers and the necessary software.

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For personal users, an indirect channel will be used. The antivirus software will be given to registered dealers who will then distribute it among retailers willing to retail our product. For Plan C, the personal user has to fill up a form available at the retailers who will relay the request to the head office or branch office.

Promotion Since Vanguard has two distinct target markets, there will be two separate sets of promotional or advertising strategies. The marketing campaign will be divided into three phases. In the first phase the objective will be to build consumer awareness. This can be done by arranging seminars and workshops for the B2B market and providing incomplete advertisements on various media for the consumer market. In this phase it is necessary to make consumers aware of the hazards resulting from data theft and loss. All the marketing efforts will be directed towards making customers realize the threat that cyberspace holds without proper security measures being undertaken.

Phase 1

Objective: Creating awareness and interest in the product Length: 3 months Objective: Giving out information to the and building on interest Length: 2 months

Phase 2

Phase 3

Objective: Making the user base growth Length: 2 months

In the second phase of the campaign the objective will be giving out more information to build on the interest of the customers. In this phase, the company will focus on getting the customer familiar with the product. Since the product is highly technical and often users might find it to be

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full of credence quality, it is absolutely necessary that users clearly understands the product offering and has enough information to make educated decision.

The objective of the final phase will be to make the user base grow. This can be achieved by focusing on the benefits inherent to the product itself. For personal users emotional appeal can work effectively in this phase. The specific marketing strategies for the 3 phase marketing campaign includes:

For Businesses: Participation in trade shows Arranging workshops and seminars on the importance of cyber security Press releases Advertisements in specialized business journals TV advertisements during News Programs Direct Mails and phone calls Sponsoring trade fairs Ads on social media such as LinkedIn

For Home users: Billboard Advertisements Television Advertisements Social media advertisements on Facebook & YouTube Organizing programming competitions Social media presence (e.g. YouTube channel & Facebook page) Sales promotion Point of sales promotion Advertisements in computer magazines.

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Operational Plan

Purchase Supplies

Ship to Vanguard

Warehousing

Wholesalers

Management Summary

CEO

COO

VP finance

VP Sales & marketing

VP research & Dev

Manager

Manager

Accountant

Sales Manager

Sales Manager

Engineer

Engineer

Software Developer

Emplpyee

Employee

Sales Rep

Sales Rep

Technician

Technician

Employee

Employee

Sales Rep

Sales Rep

Technician

Technician

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Position Level 4 Level 3 Level 2 Level 1 Total Staffing Cost (1st year)

Salary (1 year) 12,00,000 8,40,000 X 4=33,60,000 3,60,000 X 8=2880000 1,20,000 X 12=14,40,000 88.80,000

Financial Plan
Sales Projection Year 2014 2015 2016 Plan A 20 25 35 Plan B 40 50 65 Plan C 100 120 150 Plan D 5000 6000 8000

Revenue model Vanguards revenue will be brought in through product sales, upgrades, and annual renewals of support contracts. Future avenues for revenue include product training workshops and a bimonthly magazine.

Sales Revenue Year 2014 2015 2016 Revenue (20*6,00,00)+(40*1,20,000)+(100*6000)+(5000*2000) Total 2,74,00,000

(25*6,00,000)+(50*1,20,000)+(120*6000)+(6000*2000) 3,37,20,000 (35*6,00,000)+(65*1,20,000)+(150*6000)+(8000*2000) 4,57,00,000

Revenue From Renewal of Upgrade and Maintenance (assuming a 100% customer retention) Year 2015 2016 Revenue (20*50000)+(40*15000)+(100*2000)+(5000*1500) Total 93,00,000

93,00,000+(25*50000)+(50*15000)+(120*2000)+(1500*6000) 2,05,40,000

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Financial Needs Summary Investment funding is needed for capital expenses and operating expenses for the first year of operation.

Capital Expenses: The servers will be manufactured by ZTE corporation in China and will be imported for 3,00,000 taka. Each of these server can accommodate 100TB of data which is the typical volume for a big company. SMEs have a volume of 10TB of data and hence they perfectly fit in plan B. Home users are expected to have data of 1TB and can easily be fit into Plan C.

The antivirus software is developed by Symantec Corp and will require a hefty amount of 50, 00,000 taka initially for the patented technology. In the following years Vanguard has to pay Symantec 15, 00,000 every year as a licensing fee.

The specialized security software is another area of capital investment for vanguard technologies. This software is developed in strategic alliance with Symantec and will cost Vanguard 1, 50, 00,000 taka with a renewal cost of 30, 00,000 per year.

Financing needs

Servers Software Computers Office Furniture Rent (office) Salary Expenses Utilities Marketing & Selling expenses Insurance Total Financing need for 2014

30*300000=90,00,000 50,00,000+1,50,00,000=2,00,00,000 20,00,000 5,00,000 24,00,000 88.80,000 2,00,000 75,00,000 200000 5,06,80,000

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Pro forma Income Statement

REVENUE Gross sales Less sales returns and allowances Net Sales

2014 $27,400,000 0 $27,400,000

2015 43,020,000 0 $43,020,00 0

2016 66240000 0 $66,240,000

COST OF SALES Beginning inventory Plus goods purchased / manufactured Total Goods Available Less ending inventory Total Cost of Goods Sold $0 9,000,000 $9,000,000 1,500,000 7,500,000 $1,500,000 10,500,000 12,000,000 2,100,000 9,900,000 $2,100,000 15,000,000 17,100,000 3,000,000 14,100,000

Gross Profit (Loss)

19,900,000

33,120,000

52,140,000

Expenses Salaries and wages Advertising and marketing expense Insurance Rent Utilities Depreciation & amortization Office supplies Interest 8880000 7,500,000 200,000 2400000 200000 250,000 10,000 5,068,000 $9,768,000 9,000,000 220,000 2,600,000 300,000 250,000 50,000 5,068,000 11,721,600 9,900,000 264,000 3,120,000 360,000 300,000 60,000 5,068,000

Total Operating Expenses

24,508,000

27,256,000

30,793,600

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Net Income Before Taxes Taxes on income Net Income After Taxes

-4,608,000 685,000 -5,293,000

$5,864,000 2,199,000 3,665,000

$21,346,400 8,004,900 13,341,500

Extraordinary gain or loss Income tax on extraordinary gain

$0 0

$0 0

$0 0

NET INCOME (LOSS)

($5,293,000 )

$3,665,000

$13,341,500

Pro Forma Cash Flow FY 2013 Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Subtotal Spent on Operations Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Purchase Other Current Assets 685,000 9000000 $2,199,000 1,05,00,000 8,004,900 $15,000,000 24,258,000 24258000 $27,006,000 $30,493,600 27,006,000 $30,493,600 50680000 $0 $0 0 78080000 FY 2014 $0 $0 $0 $0 43020000 FY 2015 $0 $0 $0 $0 66240000 FY 2016 27400000 27400000 43020000 43020000 66240000 66240000 FY 2014 FY 2015

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Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance

2,25,00,000 $0 $33,943,000 $44,137,000 $48,007,000

$0 $0

$0 $0

$29,205,000 $53,498,500 $13,815,000 $12,741,500 $61,822,000 $74,563,500

Pro Forma Balance Sheet FY 2004 Assets Current Assets Cash Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Earnings Net Worth $0 $0 $0 $0 $50,680,000 $50,680,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $25,000,000 $250,000 $24,750,000 $70,387,000 FY 2014 $25,000,000 $25,000,000 $500,000 $800,000 $45,637,000 $63,922,000 $77,563,500 $44,137,000 $1,500,000 $61,822,000 $74,563,500 $2,100,000 $3,000,000 FY 2005 FY 2006

$24,500,000 $24,200,000 $88,422,000 $101,763,500 FY 2015 FY 2016

$50,680,000 $50,680,000 $50,680,000 $50,680,000 $0 $0 $13,341,500

($5,293,000) $3,665,000 $70,387,000

$88,422,000 $101,763,500

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Loan Proposal

The initial financing required for the business amounts a little more than 5 crores. This classifies the company as a SME and a SME startup loan can be obtained from Bangladesh Bank at a flat rate. The other sources of finance could be: Commercial Banks Private Investors Finance and leasing companies

The loan will be used for the following areas on the business Servers Software Computers Office Furniture Rent (office) Salary Expenses Utilities Marketing & Selling expenses Insurance Total Financing need for 2014 30*300000=90,00,000 50,00,000+1,50,00,000=2,00,00,000 20,00,000 5,00,000 24,00,000 88.80,000 2,00,000 75,00,000 200000 5,06,80,000

The loan will be paid off after 10 years. For this 10 year period the lender will receive an interest payment of 10% annually. After 10 years the principal amount will be paid off.

The loan payment will be generated from the sales of our product which is relatively stable. Even if the company faces a considerable loss, the firm will be able to absorb the loss with it capital support and pay the interest amount.

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Reference

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