Documente Academic
Documente Profesional
Documente Cultură
“Mentors””
The University of Asia Pacific
Group: Mentors
(MHR-303)
“Entrepreneurship Development and Small Business”
Report on
Establishing a New Business Plan
Submitted to:
Jesmin Sultana
(Course Instructor)
Submitted by:
Mritunjay Biswas (07)
Md. Nasim-Bin-Alam (25)
Nusrat Jahan Urmi (05102901)
Md. Rashedul Islam (18)
Rafia Ahmed (22)
Date of Submission:
05-09-07
September 05, 2007
Jesmin Sultana
Course Instructor, DBA
The University of Asia Pacific.
Dear Madam,
This report has been prepared under your guidance and due to our
limited knowledge there might be some errors in our report which we
hope that you will pardon us considering the fact we are still students
and within a learning process.
Yours sincerely,
------------------------
Mritunjay Biswas
------------------------
Md.Rashedul Islam
------------------------
Md. Nasim-Bin-Alam
------------------------
Rafia Ahmed
------------------------
Our heart –felt thanks to Almighty Allah, our creator and
World.”
Fit Body & Be Happy
Table of Content
Serial Content Page
1. Executive Summary
2.1 Introduction
3. Company Profile
3.3 Partners
3.8 Services
4. Data Collection
4.4 Customers
5.3 Logo
5.4 Publicity
5.5 Location
5.7 Transportation
5.8 Survey
5.9 Pricing
6. Management Strategy
6.7 Risk
7. Forecasting Results
11. Conclusion
12. Bibliography
A business plan is a document that is used as a base for future action of the
Most of the time customers facing different types of health problems like
physical fitness, execs fat, dieses, beauty of the body etc. We want to start
this business; the people who are needed to take such services on the basis
conscious about their health and must be control their body as a smart
shape, reducing fat, making them strong and fit for every event as a smart
partnership business. The name of our health club service business is “Fit
The following services will be offered through our business: Weight Loss,
Weight Gain, Belly Reduction, Hip Reduction, Physical Fitness and Body
Building, Reduce extra fat, Increase Stamina and energy etc. Such kind of
businesses is so easier to form and have a vast profit. This type of business
1
Our business will be situated beside the Stamford University, House No:
16/A, Road no: 19, Shatmosjid road, Dhanmondi Dhaka where we will get a lot
The partners who are related in different sectors share the overall
the VIP Sports, Tazgoan, Dhaka and Flora computer ltd. Computer City, IDB
The health club “Fit Way” provides services. The general service of our firm
is that how do we help the customers and how can we satisfy the customers'
need. Our main service as a health club is the customers’ fitness and body
things for the business are market area, size and characteristics.
There are only three health clubs that provide almost same services who are
our main competitors. Our main competitions as health club are “Fitness
2
Introduction to
Business
Plan
3
2.1 Introduction:
A business plan is a document that is used as a base for future action of the
provides entrepreneur’s road map for successful enterprise. The person who
takes risk for establishing new venture or who has the capability of taking
Our vision is to provide the best quality services in reasonable price under
Now a days, people very much conscious about their health. If a person’s
point of view, we are going to establish a health club named “Fit Way” on
January, 2008.
Today increasing demand of health club expands the market. To fulfill the
4
Our target customers are the people, specially studying in Collages and
Mritunjay Biswas is the Director of our firm and Md. Nasim-Bin-Alam is the
Partners. To bearing all the expenses to start business we need TK. 53,
00,000 as capital. Our initial investment is TK. 70, 00,000 by sharing each
partner equally. In the very first year, our cash in hand is TK.7, 72,400 and
bank balance is TK.34, 05,000. Out total cost is TK. 58, 13,300. it is required
for the first year operation. The business will be self sustained by the end
instructor Jesmin Sultana on the very first day of our MHR-303 class.
5
2.3. OBJECTIVES OF THE REPORT:
Primary objective:
Secondary objective:
report which we feel is important for us to improve our grade and our
These are several health clubs in Bangladesh but we have focused our
of the “Fitness World” were extremely busy we could only get a quick
look of their services and have tried our best to show their customer
6
2.5. SOURCES OF DATA:
Primary source:
Secondary source:
7
2.6. METHODOLOGY OF THE REPORT:
following:
Development and Small Business” course instructor and she helped us a lot.
World”
• We discussed with our group members and also discussed with our
• Shortage of time.
• Some time one or two student did not participate due to personal
problems
8
9
3.1. Name of the Business:
10
3.2. Address of the Business
House no # 16/A
Road no # 19 (Old)
Dhanmondi, Dhaka-1209
Bangladesh
Partners:
Mritunjay Biswas
Rafia Ahmed
11
3.3. Partnership agreement:
Fit way:
Shatmosjid road,
Dhanmondi Dhaka-1209.
Mritunjay Biswas
12
Md. Rashedul Islam
House: 9/1/A
Road: 4/A
Rafia Ahmed
Dhaka-1211
Hazaribug,
Dhaka-1205
3. Types of business:
“Fit Way” is a health club. We have a along desire to provide maximum health
benefit to the people so that they can enjoy a healthy & happy life. That’s
why we are going to open a health club which makes people fit.
4. Amount of investment:
Each partner contributes 14 lakh. We are 5 partners that’s why our total
13
5. How profit and losses will be shared:
As all parterres contribute equal amount of money, profit & losses will be
shared equally.
Each partner can draw out tk.2lakh at a time. If a partner wants to withdraw
14
7. A job description detailing duties & responsibilities of each
partner:
Director:
Mritunjoy Biswas
• Motivating employees.
Manager:
Md. Nasim- Bin-Alam
• Preparing payroll.
• Supervise subordinate.
15
8. A limits on the action each partner can take without
consent of other:
If one partner takes any action without consent of others, it may break the
partnership. So, to take any action each partner has to get the consent of
• By agreement: Our firm may be dissolved any time with the consent of
all the partners of the firm. Partnership is created by contract; it can also be terminated by
contract.
one of the partners becomes insolvent. Again, our firm is dissolved by the happening of any
dissolve a firm if one of the partners becomes unsound mind or permanent incapacity due to
illness.
16
11. A process for expelling partners:
regulation:
• Employees
• Consumers
• Competition and
• The environment
17
3.6. Regulations which affect our Business:
regulation. The regulations which will affect our venture in our district are:
• Business registration
• Licensing requirements
• Sales tax
• Income tax
• Labor legislation
central and ministries of consumer and commerce affairs. The laws cover
18
3.8. Services:
‘Fit way will provide services which are essential for building a person’s body.
It is not only beneficial for building a person’s body, but also beneficial for
about how to exercise properly so that they can achieve maximum benefit
• Trained Instructor
• Suitable Environment
• Weight Training
• Medical Consultant
• Aerobics
• Sauna
• Appropriate price
• Fitness Assessment
• Nutrition
• Steam Bath
• Massage
19
20
4.1. Description of the firm:
“Fit way” is a health club which will be established to build good health.
Dhanmondi, Dhaka-1209
present, the company does not have any fulltime employee. The two
We, five partners, including Mritunjay Biswas & Md. Nasim bin Alam,each
own equal share of the firm. Any questions relating to business plan is
21
4.2. The Market place:
The market place for ‘Fit way” are throughout Dhaka especially in
30% over the next five years. The following market values are based on
an average:
22
4.4. Customers:
The young people are conscious about their health and are interested to fit
their body. That’s why our target customer is young people studying in
to establish our health club ‘Fit Way’ in Dhanmondi. Because there are so
• Fitness world
• Lady line
• King shook
admissions and tk. 600 for monthly payment & tk. 1500 per customer on
semi-annually basis for admission & tk. 600 for monthly payment.
23
“Lady Line” is located in Dhanmondi 9/A. It owns the 20% share of the
market. On yearly basis it charges tk. 4500 per customer for admission and
tk. 700 for monthly payment. On semiannually basis it charges tk. 2500 for
admission & tk. 600 for monthly payment. Lady Line is only for women. That’s
“King shook is located in Dhanmondi 32/A. It owns the 22% share of the
market. It charges tk. 3500 for yearly admission and tk. 650 for monthly
payment. On semi- annually basis, it charges tk. 2000 for admission tk. 700
competitors to analyze them and set the pricing. We will charge tk.
4000 for admission & tk. 500 for monthly payment on yearly basis. On
semiannually basis, we will charge tk. 1500 for admission & tk. 800 for
monthly payment.
24
25
Image:
a huge amount of money. For developing the image of our business, we will do
Sales promotion:
• Refreshment.
-Blood donation
26
Customer Services:
Customer is our main focus. We want to give the best quality services to our
• Reasonable price
have a great demand on this. That’s why, we will provide electronic machine.
arranged.
27
Advertising:
Slogan:
28
5.2. Visiting Cards:
“Fitway” as the health club service business; it has two visiting cards for
29
5.3. Logo:
30
5.4. Publicity:
The impact of publicity for a business is very important. Publicity can create
a large number of sales. So, we have to careful about our publicity. We will
Newspaper:
For our business we have selected Daily Star, Prothom Alo, Janakantha etc.
Leaflet:
We will provide our leaflet near different schools, universities, restaurants
etc. in Dhanmondi.
Magazine:
We will publish add in magazines like e-biz, science world etc.
31
5.5. Location:
consider cost for analyzing location. For finding location, we have considered
a suitable location where customers are available for our business. The
For our health club, the main customers are young people. There are so many
the main issue for which we have selected Dhanmondi for our business.
5.7. Transportation:
32
5.8. Survey:
5.9. Pricing:
introduce a new company no one does not aware our company, so face the
For our company’s product we sets the market penetration price mean we set
a low initial price in order to penetrate the market quickly and deeply to
attract a large number of buyers and win a large number of share in market.
Price is very sensitive issue to our customers. Slightly changed price can
create a large impact on our business. For setting price we have considered
• We have conducted a survey and have found the price which is the
33
5.10. Sales plan & credit terms:
will be able to make profit, we will expand our business in another area. Any
types of purchasing decisions are taken by manager. For increasing our sales
have to pay lower monthly payment than semiannually basis. Any types of
Mohammadpur, Kalabagan & Samoli. Information was also obtained from the
following publications:
34
35
6.1. Core Management Team:
The current members of the management group are the principals of the Fit
way. Mritunjoy Biswas is the managing director of the firm. His main
responsibility is to innovate new idea which is beneficial for our business.
Md. Nasim Bin Alam is the manager of the firm whose main function is to
evaluate employee works and manage the total business.
Manager:
36
Accountant:
Trainer:
Assistant:
Cleaner:
Receptionist:
37
6.3. Organization Management Organogram
To manage our business we require the following number & types of employees.
1 Director 1 person
2 Manger 1 person
3 Trainer Male... 3 person
Female… 2 person
4 Accountant 1 person
5 Doctor 1 person
6 Cleaner 1 person
7 Receptionist 1 person
Director
Manager
38
3.5. Salary Structure:
Skill:
We need a skilled employee to operate our business. A skilled employee has
the capability to run a business smoothly.
Manner:
An employee’s manner can bring the success of a firm. If the customers are
satisfied with the manner of employees, it will bring a long term profit for
the firm.
39
Commitment & loyalty:
A committed 7 loyal employee can reach a firm to its goal. That’s why we
want committed 7 loyal employees.
Salary:
Salary is the most important expectations. Because it affects the
employee’s lifestyle. We will give our employees reasonable salary.
Working environment:
Employees want a good & healthy working environment. We will provide our
employees a suitable environment from where they will be motivated to do
their work properly.
Benefit:
Our time schedule is flexible. Our employees can utilize this opportunity. If
our employees can hire customers, we will give them commission.
40
6.7. Risk:
Each business faces different types of risk to operate their business. We
have identified some risks. If we don’t handle these risks carefully, it will
affect our business. The risks are as follows:
Competitors:
Competitor is a major risk for our business. Our competitions are “Fitness
World”, “King shook”, & "Lady Line". They have captured maximum share of
the industry. That’s why; we have to compete with them with a strong
marketing strategy so that we can get a large number of customers.
Customer Response:
As we are a new entrepreneur of this business, customer response is lower.
Services of instrument:
To operate our business successfully, we have to use a lot of instrument
daily for a long time. These instruments may out of order at any time. If any
instrument is out of order, it will hamper our daily work schedule. Many of
our customers will deprived of using that instrument and may become
dissatisfied.
Fire:
If our flat is burnt by fire, our instrument will be turned into ash.
41
6.8. Solution:
42
6.9. SWOT Analysis:
S= Strength
W= Weakness
O= Opportunity
T=Threat
Strength:
Weakness:
43
Opportunity:
popular.
Threat:
Competitors are the main threat for us.
44
45
Year-1
Month Customer no. X Monthly fee Monthly
1 25(25X500) 12,500
2 17(25+17)X500 21,000
3 21(63X500) 31,500
4 17(80X500) 40,000
5 24(104X500) 52,000
6 21(125X500) 62,500
7 20(145X500) 72,500
8 24(169X500) 84,500
9 17(186X500) 93,000
10 18(204X500) 1,02,000
11 22(226X500) 113,000
12 24(250X500) 125,000
Total =18,09,500
47
Semiannually:
(1500X150)
Total =7,76,200
48
7.3. Five Years Sales Forecasting:
Light 7,500
Installation & decoration 4,00,000
Office equipment 30,000
TV(2) 30,000
Computer with sound system 35,000
Telephone, mobile 6000
Insurance 60,000(12X5000)
License 50,000
Total fixed cost 43,45,500
Variable cost
Advertisement
Leaflet 9000
Newspaper 12, 09,600
Magazine 50,000
Total advertisement =12, 68600
Electricity 96,000(12X8000)
Telephone 3600(300X12)
Mobile 3600(300X12)
Refreshment (staff) 40,000
Refreshment (customer) 6000
Other expense 50,000
Total variable cost 14, 67,800
50
Break-even annunity =
S – VC
43, 45,500
= 6464.25-3669.5
43, 45,500
= 2794.75
= 1554.98
= 1555
FC
Break-even sales =
1-VC/S
43,45,500
=
1-0.568
= 43,45,500
0.432
=Tk.100, 59,027.78
54
R=6464.25q
q r (q , r)
0 0 (0,0)
400 2585700 (400 , 2585700)
1555 10051908.75 (1555 , 10059027.78)
2000 12928500 (2000 , 12928500)
C=3669.5q+4345500
q c (q , c)
0 0 (0,0)
1555 10051572.5 (1555, 10059027.78)
2000 11684500 (2000, 11684500)
400 5813,300 (400, 5813,300)
55
Sales
TC
1.3C
1.2C
1.1Cr
90L
80L
70L
60L
50L
40L FC
30L
20L
10L
Q
500 1000 1500 2000
56
7.9. Ratio analysis:
1. Current Ratio:
We have no current liabilities, so we don’t need to find out acid test ratio.
57
3. Debt Equity Ratio:
Debt
Formula:
Equity
For operating our business we don’t take any debt, so we don’t need to find
out debt equity ratio.
35, 19,880 33, 85,280 22, 90,280 22, 85,280 22, 85,280
29, 90,700 35, 43,680 40, 41,354 45, 20,750 55, 33,159
Here we see day by day operating expanse ratio is lower. It indicates the
signal of our success.
58
5. Inventory Turnover Ratio:
Our business is a service business, that’s why we don’t have any cost of
goods sold, so doesn’t need to find out inventory turnover ratio.
Accounts receivable
Formula: X 365
Annual sales
59
7. Return on Total Assets:
Operating income
From the above calculation we see the return on total asset ratio is
increasing.
8. Return on Equity:
Net income
Formula:
Shareholder Equity
From the above calculation we see, return on equity ratio is increasing unto
three years & then 3 to 5 years it remains constant.
60
61
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63
64
65
73
Conclusion:
their health. For this reason, they should look for a good health club
where they will get the required services and we promise to give them
The study confirms that the demand of health club is increasing day
by day. In recent years, several changes are observed that people are
BOOKS
Entrepreneurship
-By Peggy Lambing & Charles Kuehl
SURVEY
Customer Survey
Competitor Survey
WEB SITES
www.worldhealthclub.com
www.google.com
www.bodybuilderbd.com
HEALTH CLUB
Fitness World
Dhanmondi, Dhaka
Lady Line
Dhanmondi, Dhaka
76