Business Plan Final Copy Wedding Mart

MGT 368.
2
Business Plan
Company: Wedding Mart
Category: Wedding Related Products & Services.
Industry Analysis
Every business operates within the larger classification of an industry. We tried our
best in our business plan to address the forces at work in our industry, the basic trends
and growth over time and where our company fits in. understanding and anticipating
the important factors of our industry builds a case for our businesss success. This
section of the business plan will include an overview of the industry sector that our
business will be a part of, including industry trends, major players in the industry, and
a summary of our business's place within the industry.
FUTURE OUTLOOK AND TRENDS

Marriage is a very important part of every Bangladeshi peoples life. Now it has
become a trend to organize the marriage in a different and exceptional way. Now
people in Bangladesh spend a lot for the marriage and they want to do it in a very
decorative way staring from the shopping till the marriage ceremonies. And it will
continue to do so in future. In near future people will spend a lot to buy the marriage
staffs and will want a more high quality products. Along with this they will be more
demanding a place where they can get all the high quality marriage staffs under one
roof and in a very family and friendly environment. Also the trends in the wedding
dresses are also changing. Women are more interested to buy Lahenga instead of Sari.
Men prefer more suits in the place of Punjabi, Dhuti or Kurta. Also there is a changing
trend in the preference of the dress colors. Men and women both are preferring light
colors dress like light pink, lavender, white instead of deep colors like red, moron,
orange etc.
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ANALYSIS OF COMPETITORS
Criteria
Name of The Competitor
Existing Event Management Firms
Triune Exhibition & Event

Management Services (TEEMS).
ALBATROSS
AutoDen.info Event Management.
Visionary Event Mgt Ltd.
Golden Bengal Tours and event
management.
Wedding dresses
Mirpur Benarosi Palli

Shoppers World
One Stop Mall
Almas
Aarong
For Women
For Men
Reymond
Sunmon
Longla
Century
Dulhan
Jewelry
Almas
Priyo
Lavender
Cosmetics
Apex
Liberty
Priyo
Almas
Shoppers World
Apex
Liberty
Priyo
Almas
Shoppers World
Palki
Sanai
Bor-Kone
Dulhan
Professional Photographers
Wedding Shoes
Other Marriage Staffs
Photography
MARKET SEGMENTATION
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Market segmentation is a very important factor for every new business. Market
segmentation is the identification of portions of the market that are different from one
another. Segmentation allows the firm to better satisfy the needs of its potential
customers. We will do the target marketing instead of mass as target marketing on the
other hand recognizes the diversity of customers and does not is to identify different
market segments and their needs. In this part we will focus on specific market, who
will be our customers, business environment of that market segment, and the
geographic area where our business will compete. This part is significantly important
for preparing our marketing plan. We will segment our market based on the following
variables:
o
o
o
o
o
o
Needs
Profilers
Geographic
Demographic
Psychographic
Behavioral
o Geographic Segmentation:
Geographic segmentation is based on regional variables such as region, climate,
population density, and population growth rate. We will mainly target the higher class
and the urban people as most of our products are branded and designed products.
Thats why primarily we will launch our branch in Dhaka at Dhanmmondi. Also in
future we have a plan to expand in Gulshan, Banani, Uttara and other part of the
Dhaka city like Chittagong.
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o Demographic Segmentation:
Demographic segmentation is based on variables such as age, gender, ethnicity,
education, occupation, income, and family status. As we said we are mainly targeting
the higher class people. So their income level should be very high. Also we will be
focusing on the business people as well as other high ranking job holders. Education
level of our target customers is a very important factor but it does not apply to all
class people as it will allow them to go for the high quality products even it they are
very expensive. We will collection for both men and women wedding things. So are
targeting the both. Age limit for our target customers are 20-40 years but its not that
other this age limit others cannot come and go shopping at our shop. At last but not
the least we will be targeting mainly Hindu and Muslim. But other religion people is
always well come to our shop.
o Psychographic Segmentation:
Psychographic segmentation the division of a heterogeneous market into relatively
homogeneous groups on the basis of their attitudes, beliefs, opinions, personalities
and lifestyles; sometimes called "State-of-Mind" Segmentation. We will also segment
our market on the basis of Psychographic factors.
We will be targeting the high class people with a belief that high quality and designed
marriage products can be very expensive and they are ready to buy excusive marriage
products to make the wedding memorable. So our target customers have to have the
mentality and lifestyle to buy all the products from one place where they can get all
the marriage items and other services like marriage event management in a very
family environment with a high class car parking facilities.
o Behavioral Segmentation:
Behavioral segmentation is based on actual customer behavior toward products. It is
based on variables such as usage rate and patterns, price sensitivity, brand loyalty, and
benefits sought. Behavioral segmentation has the advantage of using variables that are
closely related to the product itself. It is a fairly direct starting point for market
segmentation. We are targeting high class people because they will come to buy these
exclusive marriage products like dresses, ornaments on a regular basis as they have
the buying habit of purchasing expensive things. But the middle class people will
come occasionally to buy our products. So we have to focus more on the regular
customers as they will have high brand loyalty. Also our target customers will also be
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very low price sensitive so that they do not switch to a cheaper brand if price
increases for any valid reason.
INDUSTRY FORECASTS
Today information and communication technology is progressing at a faster and faster
pace. Knowledge and other assets are rapidly becoming devaluated and outdated
while traditional business models are replaced by new models. In this changing
business environment, industry forecasting will help us a lot to show the "big picture",
comprising of aspects of technology, society, economy, politics, customers and
competition. Understanding relevant trends and possible outcomes provides insight to
support fruitful business strategies which lead to successful business decision-making
and leverage technology innovation to lead the industry in dynamic new directions.
o Industry Condition in next 5 years:

Selling wedding products and organizing the wedding is a business that much more
depending on the current market trend which is ever changing. This is very difficult to
predict the future fashion trend. Our business success depends on how well we can
predict the future trend of wedding fashion industry. In future there will be a huge
change in the wedding industry.
Now there is no business like us who is selling all the items required for the marriage
as well as providing services pertains to the marriage such as organizing the marriage,
decorator service, photography, DJ service, decorators service etc under one roof.
Seeing us we think there will be many businesses like this in the industry within the
next five years. So we will have to face a huge competition in the next five years.
Also there will be huge demand of this type shop from the customers side. So to face
the future competition and the fulfill the customers demand and retaining them we
will have to increase our branches in different place and along with this we will also
have to increase our products quality so that we can face the competition and maintain
the pioneer position in the industry.
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PEST ANALYSIS
The PEST analysis is a useful tool for understanding market growth or decline, and as
such the position, potential and direction for a business. PEST analysis measures the
market potential and situation, particularly indicating growth or decline, and thereby
market attractiveness, business potential, and suitability of access.
o The PEST tool table:
POLITICAL
ECONOMIC
Ecological/environmental issues
Overseas economies and trends
Current legislation home market
General taxation issues
Future legislation
Taxation specific to product &

service.
international legislation
Seasonality/weather issues
Regulatory bodies and processes
Market and trade cycles
Government policies
Specific industry factors
Trading policies
Customer/end-user drivers
Funding, grants and initiatives
International trade/monetary issue
Home market lobbying/pressure groups
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SOCIAL
TECHNOLOGICAL
Lifestyle trends
Competing technology development
Demographics
Associated/dependent technologies
Consumer attitudes and opinions
Replacement technology/solutions
Media views
Maturity of technology
Law changes affecting social factors
Information and communications
Brand, company, technology image
Technology legislation
Consumer buying patterns
Innovation potential
Major events and influences
Intellectual property issues
Advertising and publicity
o Political Analysis:
There are many important political and legal issues in starting a new venture. The
entrepreneurs should be prepared for any future legislation that may affect the
products or service or promotion strategy. We opened our partnership business
following the rules and regulations under Partnership Act 1932. We also do all our
contracts based on the Contract Act 1872. Following the Building Code of the
Bangladesh we have a separate space used as parking lot. We also considered our
countrys environmental issues in starting our business. Also we will follow the
international legislation and trading policy when importing products. We will also
have to be prepared to face the future changes and uncertainty in the countrys
legislation. Also we will also have to be ready to face the home market lobbying or
pressure from different groups.
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Business Plan
o Economical Analysis:
Every business should consider the trends in the GNP, unemployment by geographic
area, disposable income. We have products to sell to address the current trends. We
will also follow the existing taxation policy on the profits earned from the business.
As in our country the higher level people has a quite high monthly income. As a result
we are targeting those people to fulfill their demand for high quality branded wedding
products and world class event management services.
o Social Analysis:
Analyzing the social factors is a very important thing for the any business. We have
done our social analysis properly and carefully. We have analyzed the demographic
needs and current Lifestyle trends and to address the trends we have come with the
wedding products that will meet their needs properly. We also have addressed
Consumer attitudes and opinions, law changes that affecting social factors, Consumer
buying patterns, Major events and influences affecting our business, and at last but
not the least we will be doing proper Advertising and publicity to attract our potential
customers.
o Technological Analysis:
Technology is not an important factor for our business but we cannot ignore the
effects of emerging technological changes. We have to understand that we will be
communicating our products information through the use of some technological
media like TV, Internet, and Ads. We have to choose a media which is technologically
advanced and it can provide the appropriate message about our products and services
to the potential target customers.
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Description of Venture
Wedding Mart is a shop come event management organization. We provide some
extraordinary and flexible services to our valued customers. We will provide various
products and services in terms of selling and lending wedding materials and will
organize wedding ceremony.
o Mission Statement
We, the employees and management of wedding mart, make this pledge to you, our
valued customers:
We pledge that we will provide high quality and branded wedding product in a
friendly manner.
We pledge that we will provide only quality product that meet the growing
demand of our target customers.
We pledge that we will provide service to organize wedding ceremony and
other decorator services to our valued customers.
We pledge that we will be good community citizen, respectful to the
environment and friendly nature to the surrounding business.
We pledge that we will always provide positive public image and make our
establishment one that you can visit with safety and peace of mind.
We pledge that we will we will be responsive to you suggestion concern
If we dont keep our pledge of satisfaction, you do not pay!
o Vision Statement
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In three years Weeding Mart will be established in Dhaka city and the expansion plan
will be developed to expand in other parts of the country to meet the growing demand
of wedding products and event management services together.
PRODUCTS MATERIALS
Dress of bride & bridegroom
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Bride-Groom
Products Name:
Sherwani
Punjabi
Dhoti
Suit
Tie
Shirt
Fotua
Products Name:
Sari
Lehenga
Lasa
Galara
Salwar kamiz.
Bride
Ornaments & cosmetics
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Ornaments
Products Name:
Antic
Metal
Stone
Sample jewelry
Cosmetics
Products Name:
Cream
Foundation
Lotion
Shampoo
Hair oil
Perfume
Soap
Lipsticks
Face powder
Eye shadow
Kajol
Eye liner
Bassoon
Shoes
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Male
Products Name:
Nagra
Shoes
Sandal
Female
Undergarment products
Products Name:
Blouse
Petticoat
Under garments
Socks
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Accessories
Personnel
Products Name:
Turban
Purse
Sindoor
Churi
Wallet
Watch
Cough link
Beauty box
Products Name:
Suitcase
Ribbon
Betel
Sugar
Nut
Dallas for Halud & Punchini
Fancy Pot
Event Management
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SERVICES
Our service for the valued customers and clients are as follows:
Event management: We will provide various types of event management which is
related to the wedding occasion of Bangladesh. Like wedding ceremony, engagement
program, Gaya Halud will be organized by us in the renowned community center in
Dhaka city and every responsibility regarding this management we will be ours. We
also organize Gaya Halud, Engagement ceremony in house, roof-top who are want to
organize it in clients own house.
o Photographic & video services:

We will provide professional photographer services to our clients for the wedding
purposes. And we have a contract with the photographer where it discloses entire
terms and condition. We also provide still photograph & video service with CD &
DVD service so that clients can get full satisfaction about our services. And we value
our customer most.
o Orders on Dress designing & tailoring service:

We keep order on dress for both male and female so that customer can buy their
desired dress easily. They can see our products quality and style and order their
design. We also provide tailoring service to our valued customers because it is
obvious that ready mate dresses are not fir to all which are not fit to all.
o Decoration & wrapping service:

On event management side we provide the service of decoration on wedding hall,
decoration of Gaya Halud, car, Shohag raat, lighting of house on the basis of clients
demand and the charge is separate for each item. As our customer demand we provide
wrapping services of Gaya Halud and Punchini products which are related programs
of Bengali wedding.
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o Car rent and decoration:

For the purpose of wedding ceremony, we will provide rent a car services and car
decoration service to our valued customer. We have contract with rent a company for
the wedding purposes and have contract with car decorator who will decorate the
wedding car in the name of Wedding Mart. We also provide only car decoration
services that has car already.
o Catalog on jewelry:
We will keep some sample ornaments in our shop come office so that customer can
buy the product as well as give order to jewelers through us. We have contract with
some Jewelry house like Amin Jewelers, Kalpona Jewelers, Venus Jewelers who will
take our order and will give 5-8% discount to our customers so that they can have
more deals. We also keep antic ornaments, stone ornaments in our shop so that
customer can but his or her right choice.
o Decorator service:
We arrange the decorator services of home organized Gaya halud, engagement
ceremony. We have contract with the famous decorator who is working in community
centers. So we give contract to them and organize the whole procedure eventually.
o Band party & DJ service:

We have contract with the famous band party of old town who serves in wedding
ceremony and produce wedding music all the time. We also have contract with
famous DJ so that they can entertain their guests properly. We do not hire any
ammeter in this regards. DJ service is now very popular in upper class wedding.
o Tom-tom service:
We have contract with tom-tom driver of old town so that we can provide to tom-tom
services to our clients for meeting their needs. Nowadays tom-tom is very popular in
Dhaka city. It is used to bear the groom to the wedding ceremony. We have paid a
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fixed amount of money to the drivers so that we can call them any time when we need
it.
o Flower services:
Nowadays flowers are very popular in decorating the events, house, community
centers, Shohag raat and so on. So we have contract with some flower producer and
deliver who will deliver flowers timely and can decorate the whole program or event
by flowers. Flowers are also needed to decorate car. Bride sometimes needs flower to
make over.
o Parlor services:
We have contract with some famous parlor house in Dhaka city for both male and
female so that customer or client can get the services in a discount. For this reason we
keep contract with Persona, Farzan Shakiel, Habib where people can get 5-8%
discount service in make over processing.
o Kazi & Pundit services:

For Muslim wedding we provide Kazi services to our potential customers because it is
hassle for call kazi individually. So we have contract with Kazi on monthly basis. As
we target Hindu religion people we also provide Pundit services to our valued client.
o Website Services:
We open our website address in the internet. Anyone can get us from any parts of the
country as well as foreign country. It will help the foreigner as well as non resident
Bengalese to give orders by the website browsing. It also reduces time of shopping
and excitement in regards of organizing wedding ceremony.
o Discount options:
we provide various types of discount so that customers and clients are being attracted
and that leads to sales increases. We have contract with several shops in discount
contract. We will provide 8% discount on shopping more than 2,00,000 taka. There is
also a bonus option to our valued customer. Clients have to choose some of cards
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where it gives some size of discount. We also have contract with Gramen Phone and
Aktel to provide thank you services to the customers.
SIZE OF THE BUSINESS

We first start our business with Dhanmondi branch because it is situated in posh place
and can easily attract target customers. For this we have rented a floor in three storied
building for six months advance. The rental charge for every month is 45,000 taka.
The place is 3,000 square ft and we can change the style of the floor easily for
decorating the shop. So we only created 4 rooms for our operation and relevant toilets
to provide best services to clients. After three years adventure, we will expand our
business in other sections at the Dhaka city.
OFFICE EQUIPMENT AND PERSONNEL

The office equipment and number of employees are worked in the company are stated
below:
o
Equipment:
For the first years operation we have to buy many equipments to decorate the place.
We have to buy three air conditioners, seven desks for our honorable directors and
managing directors and regular twenty chairs so that client can sit. For removing the
hot temperature we have to buy five fashionable fans, spot lights, tube lights, shelves,
file cabinets, hanger, showcases, and glass selves to decorate the entire shop and run a
new business.
o Employee:
Without five partners we have in total 19 employees to administer the business. It also
increases the efficiency of attracting clients. The employees position and hiring
number is stated below
Employee position
Data entry
Security guard
Cashier
Personal assistant
Event organizer
Number of Employees
2
2
1
1
3
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Sales people
10
BACKGROUND OF ENTREPRENEURS
Wedding Mart is fully financed by our five equal partners. All the rights are divided
and disclosed as the Partnership Act 1932. All the partners have good and sound
educational background in this sector. Their educational background and experience
in this sector will help them to introduce a new innovative idea of Wedding Mart.
So, they can run the business successfully without facing lots of problems. Their
Educational Background is stated below.
o M Saiful Islam
Managing director of Wedding Mart is Tarana Alam. Her major subjects are Human
Resource Management and Marketing. She also has a good command over other area.
So, she is elected as the managing director of the company by their partners. Her
excellent educational background will help Wedding Mart to be popular to everyone
in short period of time and growth of the company will be extremely high.
He is also the director of Finance and Accounting. He has a very good command over
Finance and Accounting. His clear concept of this side helps Wedding Mart to survive
in the long run. His valuable services for the company will help to budget the expanse
for the year and realize the actual profit for the organization.
o Tarana Alam
She is the director of Marketing. She manages all the responsibility related to
promotions of the product and services of Wedding Mart and organizes promotion
campaign to launch our product. Her educational life is on Marketing and has good
command over promotions. Her valuable service will make Wedding Mart
renowned to every person in Dhaka City.
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o MD. Rahat Khan

He is the director of K&D what we introduced first in our country. His responsibilities
are organizing event management in a new and innovative idea. His education level is
based upon Human resource. He has minor in Marketing. He has sound knowledge
about the research and development side and has idea of event management so far.
o Mushfiqur Rahman
He is the director of Human Resource and Administration of the company. His
education is based upon Human Resource Management and Marketing. So he has a
good command over managing the employees and administrative work much. His
valuable service for the company leads it to grow fast and creates an example for
other competitors.
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Production Plan
We do not need any manufacturing process as
we are retail and service based business:
As our business is totally retail and service based, there is no manufacturing factors
involved in our operational plan. We will have contract with our suppliers and
distributors both within and outside of the country for supplying our products. We will
store that and will display for sales to the customers and also for rent. We will
maintain a lower inventory level as our business products are very changing with the
trends. For our services, except the Event Management service, we will have contract
with some service providers and our customer will go to them through using our
medias.
Physical plant
Wedding Mart is located in 27, Dhanmondi, House No # 06, Dhaka 1209. Here we
have all the high class shopping facilities like one can easily park his car and also it is
easy to find out the location as it is beside the main road.
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Physical Plant Layout:
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Wedding Materials and Equipments with the

Names of the Suppliers:
We have mainly two different types of wedding material supplier. One is wedding
produce supplier and another is service provider. However, here we will briefly
describe both of the wedding material suppliers accordingly.
Product Suppliers:
As we are not manufacturing anything, there is no supplier for providing us the raw
materials. But to supply us our selling products we have contracted with several types
of the wedding product suppliers.
Names of the bridal products suppliers

Products Name
Wedding Dresses
Suppliers Name
Jays Designer Boutique Ltd
K.S. Bridal
Raj Exports Sarees And Bridal Wears
B.C.M.Bridal Co.,Ltd
Benarosi Palli
Shoes
Apex
Liberty
Cosmetics
INTERMIX
Nasik
LAKME
PERSONI
Jewelry
A.K.Gems and Jewellers
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FusionJewels.Com
Venus International
Goina Ghor
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We will collect necessary bridal products materials from above suppliers. On the other
hand as we already differentiate the necessary product, so it will be easy for us to get
the supply of the following products as per needs. And obviously we need to have
good communications as well as alternative suppliers at a time so that we can provide
the bridal products absolutely in time to our customers with their full satisfaction.
Dress of bride & bridegroom

Bride-Groom
Products Name:
Sherwani
Punjabi
Dhoti
Suit
Tie
Shirt
Fotua
Bride
Products Name:
Sari
Lehenga
Lasa
Salwar kamiz.
Ornaments & Cosmetics

Ornaments
Products Name:
Antic
Metal
Stone
Sample jewelry
Cosmetics
Products Name:
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Cream
Foundation
Lotion
Shampoo
Hair oil
Perfume
Soap
Lipsticks
Face powder
Eye shadow
Kajol
Eye liner
Bassoon
Others
Products Name:
Nagra
Petticoat
Shoes
Under garments
Sandal
Socks
Blouse
Accessories
Personnel
Products Name:
Turban
Purse
Sindoor
Churi
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Wallet
Watch
Cough link
Beauty box
Event Management
Products Name:
Suitcase
Ribbon
Betel
Sugar
Nut
Dallas for Halud & Punchini
Fancy Pot
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Service Suppliers:
We are going to provide only the event management service by our own event
organizers. And for providing other services to our final customers, we will have
contract with other suppliers.
Names of the bridal service suppliers

Service Name
Suppliers Name
Flowers
Shabag Flower Centre
Decorator Service
Banani Decorator
Tomtom Car
Old Dhaka
DJ Service
Music Club
Kazi/Pundit Service
Pakhi Vai
Pundit Shankar
Tailoring Service
Femina Tailors
Photography Service
Professional Photographers
Parlor Service
Farzana Shakil
Quebella
Dreams
We already have distinguished our service for the valued customers and clients. And
from our above service suppliers we will ensure the best quality service and obviously
in time which our valuable customer will recollect forever. However, our main
ensuring services are as follows:
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Event management: We will provide various types of event

management which is related to the wedding occasion of Bangladesh. Like
wedding ceremony, engagement program, Gaya Halud will be organized by us
in the renowned community center in Dhaka city and every responsibility
regarding this management we will be ours. We also organize Gaye Halud,
Engagement ceremony in house, roof-top who are want to organize it in
clients own house.
Photographic & video services: we will provide professional

photographer services to our clients for the wedding purposes. And we have a
contract with the photographer where it discloses entire terms and condition.
We also provide still photograph & video service with CD & DVD service so
that clients can get full satisfaction about our services. And we value our
customer most.
Orders on Dress designing & tailoring service: We keep

order on dress for both male and female so that customer can buy their desired
dress easily. They can see our products quality and style and order their
design. We also provide tailoring service to our valued customers because it is
obvious that ready mate dresses are not fir to all which are not fit to all.
Decoration & wrapping service: On event management side we

provide the service of decoration on wedding hall, decoration of Gaya Halud,
car, Shohag raat, lighting of house on the basis of clients demand and the
charge is separate for each item. As our customer demand we provide
wrapping services of Gaya Halud and Punchini products which are related
programs of Bengali wedding.
Car rent and decoration: For the purpose of wedding ceremony, we

will provide rent a car services and car decoration service to our valued
customer. We have contract with rent a company for the wedding purposes and
have contract with car decorator who will decorate the wedding car in the
name of Wedding Mart. We also provide only car decoration services who has
car already.
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Catalog on jewelry: We will keep some sample ornaments in our shop

come office so that customer can buy the product as well as give order to
jewelers through us. We have contract with some Jewelry house like Amin
Jewelers, Kalpona Jewelers, Venus Jewelers who will take our order and will
give 5-8% discount to our customers so that they can have more deals. We also
keep antic ornaments, stone ornaments in our shop so that customer can but
his or her right choice.
Decorator service: We arrange the decorator services of home

organized Gaya halud, engagement ceremony. We have contract with the
famous decorator who is working in community centers. So we give contract
to them and organize the whole procedure eventually.
Band party & DJ service: We have contract with the famous band
party of old town who serves in wedding ceremony and produce wedding
music all the time. We also have contract with famous DJ so that they can
entertain their guests properly. We do not hire any ammeter in this regards. DJ
service is now very popular in upper class wedding.
Tom-tom service: We have contract with tom-tom driver of old town so

that we can provide to tom-tom services to our clients for meeting their needs.
Nowadays tom-tom is very popular in Dhaka city. It is used to bear the groom
to the wedding ceremony. We have paid a fixed amount of money to the
drivers so that we can call them any time when we need it.
Flower services: Nowadays flowers are very popular in decorating the

events, house, community centers, fulshojja and so on. So we have contract
with some flower producer and deliver who will deliver flowers timely and
can decorate the whole program or event by flowers. Flowers are also needed
to decorate car. Bride sometimes needs flower to make over.
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Parlor services: We have contract with some famous parlor house in

Dhaka city for both male and female so that customer or client can get the
services in a discount. For this reason we keep contract with Persona, Farzan
Shakiel, Habib where people can get 5-8% discount service in makeover
processing.
Kazi & Pundit services: For Muslim wedding we provide Kazi

services to our potential customers because it is hassle for call kazi
individually. So we have contract with Kazi on monthly basis. As we target
Hindu religion people we also provide Pundit services to our valued client.
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Business Plan
Operational Plan
Operational Process combined with flow of

order of the bridal products and services:
In the operational plan we will describe the chronological steps in completing our
business transaction. As we are not manufacturing business but retail and service
based business we will be buying our product from our suppliers within and outside of
the country. We will store that and will display for sales to the customers and also for
rent. We will also provide services to organize the marriage. We will also provide
decorator, DJ, photograph and parlor services to the customers on a contractual basis.
We will have contacts with those service providers. If any customers demand for
those services they at first will have to contact with us and then we will give the order
to the service providers and they will provide service thorough us. We will maintain a
inventory level but it will be very low as our business products are very changing with
the trends. Customers can also orders us for the products though phone, E-mail, Fax.
To maintain proper image of a product we have to consider many factors such as

costs, discounts, freight, markups etc. price estimation of a product is very difficult
because it is directly associated with the demand of the customers. For a product we
should research market, analyze competitors prices of product and select a fair price
that consumers can pay satisfactorily.
We also involve in contractual activities, such as photography, decoration, car

arrangement, concert arrangement, food arrangement, arrangement of community
centre etc. that means here, we are not directly related with these activities. In this
case, we just take order according to the plan, choice and budget of the customers and
fix up all the sides.
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We have four different types of bridal packages. These package prices will be
determined along with location or venue which actually means where our client wants
to arrange the program. On the other hand the time, that is when he or she wants the
program to arrange. Currently most popular community centers are; Darbar Hall,
Senakunjjo, Bangobandhu International Conferrance Centre, Bashundhara
Convention centre, Trust Milanayton, Party Centre, Abacus Convention centre and
priyanka community centre. However, our packages are:
Technology utilization:
Website Services: We will open our website address in the internet.
Anyone can get us from any parts of the country as well as foreign country. It
will help the foreigner as well as nonresident Bengalese to give orders by the
website browsing. It also reduces time of shopping and excitement in regards
of organizing wedding ceremony.
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Business Plan
Pricing
Pricing of our products and services is one of the important determinants whether will
be able to attract our target customers and make profit out of our business or not. We
will categorize our pricing list in two different segments; one for general and
exclusive wedding products and another for the event management services which
will be calculated in different package for the ease of our clients. We will also have
our specific pricing method and payment method and attractive discount as well.
Mainly we will try to use psychological pricing strategy which is high price-high
quality strategy for our exclusive products and services. Along with this we will also
use promotional and differentiated pricing. After three years when we will move to
other regions and cities we might introduce geographical pricing in different cities
analyzing the income level of target customers.
Exclusive Wedding Products:

To maintain proper image of a product we have to consider many factors such as
costs, discounts, freight, markups etc. price estimation of a product is very difficult
because it is directly associated with the demand of the customers. For a product we
should research market, analyze competitors prices of product and select a fair price
that consumers can pay satisfactorily.
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In the following, the huge collection of product list and range of the prices which we
have in our business are given:
Clothing Section
Product
Price Range
Sharee
2000-50000
Lahenga
5000-50000
Sherwani
3000-30000
Punjabi
1000-3000
Shirt
800-3000
Suit
4000-35000
Tie
700-3000
Accessories Section:
Product
Price Range
Shoes/ Nagra
1500-8000
Pagri
1000-3000
Watch
2000-25000
Walet
300-1500
Parse
650-6000
Coughlin
1050-2000
Belt
450-3000
Towel
100-450
Handkerchief
50-250
Socks
50-350
Undergarments
250-4000
Decorative Materials
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Product
Price Range
Fancy Pot
250-4000
Decorating Piece
100-5000
Gift Box
200-2500
Gift/ Wrapping papers
50-300
Dala/ Kula
350-1200
Ribbon, Bow, Lace, Other decorating

materials
50-1000
Cosmetics Section
Product
Price Range
Perfume
500-8000
Lipstick/ Lip gloss
100-2500
Lip liner
50-150
Eye liner
250-1500
Mascara
250-1500
Eyebrow pencil/ Kajol
150-500
Eye shadow
350-2500
Eye lashes
400
Contact lens
1500-2500
Foundation
200-1500
Face powder/ Pan cake
90-1500
Blashon
350-1500
Beauty Box
800-5000
Nail Polish
150-500
Kumkum/ Color pencil
300-650
Cleanser
100-550
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Business Plan
Face wash
100-700
Soap
30-800
Toner
100-350
Cream
350-2000
Lotion
350-2000
Oil
800-650
Liquid Soap
100-300
Shower gel
190-500
Face pack
80-350
Scrub
90-350
Shampoo
300-1200
Conditioner
250-1000
Powder
80-300
Comb
40-200
Mirror
80-550
Hair gripper/ punch clip/ Band
30-350
Razor
100-1200
Shaving foam/ cream
200-500
After shave
150-450
Jewelry Section
Product
Price Range
Necklace/ Har
800-25000
Ring
1000-5000
Bangles/ Churi
500-8000
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Tikli
1000-3000
Ear rings
550-8000
Noth
1000-4500
Biccha
1000-3500
Mantasha
1000-3500
In our business we have arranged a collection of emitation, metallic, silver, oxidize,

stone based ornaments. We are keeping catalogue, designs, and samples of normal and
gold jewelry for taking order and make contract with different jewelry shops. So
customers can effortlessly come in our shop, select design and give an order of
particular ornaments.
Exclusive wedding services

We also involve in contractual activities, such as photography, decoration, car
arrangement, concert arrangement, food arrangement, arrangement of community
centre etc. that means here, we are not directly related with these activities. In this
case, we just take order according to the plan, choice and budget of the customers and
fix up all the sides.
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These package prices will be determined along with location or venue (where our
client wants to arrange), time (when he/ she want the program to arrange) and days we
will get to arrange it etc.
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Video and Camera Systems

Photography
4500-15000
Video Camera recording
6000-12000
Editing
2500
VHS and VCD
800
Projector
4000
Sound
3600
Decoration
Gate
2500-15000
Car
1000-15000
Stage
6000-30000
Room
5000-10000
Car Arrangement
Private Car
1500-2500
Micro bus
2000-3000
Concert Arrangement
Popular Band
20000-40000
Local Band
5000-15000
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Distribution
Placement is a very important part of the marketing strategy. While choosing location
we have considered attractiveness, visibility and accessibility to the location. Being
aware of it, we have decided to place Wedding mart at Dhanmondi. Dhanmondi is
almost at the middle place as per our target consumer profiles region part, under
which we have targeted. Wedding mart will be heavily and nicely decorated to attract
the attention of our target customers. As we have already mentioned that, we will rent
a place of 3000 sq ft where all the necessary wedding products will be available.
While shopping people trends to come with number of family members, so we will try
to create a family environment at our shopping section.
Promotion
We will move on with different promotion techniques. We believe that a satisfied
consumer brings in more consumers. Our target will be to please and satisfy the
consumer. If a consumer is pleased, he or she will discuss regarding the matter with
his/her family members, friends, and relatives. These family members, friends, and
relatives will come to our place sometime or the other. In that sense, somehow we will
focus on word of mouth techniques as well.
But our primary promotional techniques consist of three categories;

Advertising:
i.
ii.
iii.
iv.
Print and broadcast ads

Brochures and booklets
Posters
Billboards
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Direct Marketing
i.
ii.
iii.
iv.
v.
Catalogs
Mailing
Telemarketing
Electronic Shopping (by website)
E-mail
Sales Promotion
vi.
vii.
viii.
Fair and Trade show

Exhibitions
Discount
Product forecasts:
We expect that within 2/3 months of the inauguration of our venture, we will be able
to catch the attention of our target customers not only because of heavy promotional
activities but also our creativity, innovativeness and flexibility. We will create such an
image that people will feel pride if they hire us to arrange their wedding program and
it will be count us showing of social status as well.
In second year, we will set up another branch of wedding mart at Gulshan area after
evaluating customers demand and trend with modified and more attractive facilities.
From third year, we will try to expand our branches outside the Dhaka city. First, we
will cover Chittagong district and gradually we will cover the whole country.
We will also come up with seasonal promotional package such as in rainy season we
might offer more discount than winter season when wedding rate is relatively higher.
Controls
Measuring and controlling the effectiveness of the promotional program is a critical
element in the promotional planning process. We will arrange monthly meeting to
evaluate the performance of our business and decide whether any strategic change is
required or not. We will use both telephony and email medium for collecting the
feedback of our customers and effective market will also be done as a necessary
ingredient to a continuing planning process.
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Wedding Mart is a partnership company. Five equal partners are in the position of
managing this company. Our organization structure and organization plan is very
effective and appropriate. There are no conflicts among the partners. Every partner
maintains their responsibility prudently which will lead the company to a prosperous
future. We also hope that we will expand our business in other parts of the country
after facing the satisfaction of the valued customers.
Form of Ownership and Management

Team Background
We the four co-owner named M Saiful Islam, Tarana Alam, MD. Rahat Khan, and
Mushfiqur Rahman of WEDDING MART formed the partnership organization
under the Partnership Act 1932 and our main office is at Dhanmondi. We will share
equal rights in operating the business because we provide same amount of investment
to form the organization. We will realize equal profits and loss through the year end
operation of business. If there is any loss we will equal liable to our creditors and
debtors. There are no forms of majority or minority of partnership. If there is any
disability about the partnership business that will be realize by the Partnership Act.
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Business Plan
Authority of Partners
Figure: Organization Chart for Wedding Mart.
Wedding Mart is a partnership business where we will follow a line of authority

depicted in the above chart where Managing Director is the top most position holder
in the business and are responsible for controlling the activities of the four director of
the business who are also the partners of the business. This provides a clear
understanding to the others about who controls the organization and how each
member interact in performing their management function.
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Identification, Roles and

Responsibilities of the members of
the organization:
Below we have given a description of Name, Designation & Responsibilities of each
member:
Name: M Saiful Islam

Designation: Managing Director; Director of Accounting &
Finance.
Responsibilities as a m.d.:
Planning:
i.
ii.
iii.
iv.
v.
Designing the strategic plan, and implement the strategic plan for
their company in the most cost effective and time efficient manner.
Developing the strategic plan, and
Implementing the strategic plan for the business in the most cost
effective and time efficient.
Developing business plans for the long term future of the
organization.
Oversee marketing, long-range planning, public and city relations.
Managing activities:
vi.
vii.
viii.
ix.
The Managing director is responsible for both the day-to-day

running of the business.
Oversee and maintain day-to-day administrative operations.
Create, develop and implement comprehensive funding program
Supervise full-time and part-time staff members.
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Business Plan
Responsibilities as the director of

accounting and finance:
Financial tasks:
i.
ii.
iii.
iv.
v.
Preparing Financial reports at the end of the year

Doing the ration analysis and assess the financial condition
Extending credit to customers
Evaluating proposed large expenditures
Raising money to fund the organizations operation
Financial analyst:
i.
ii.
iii.
iv.
v.
Preparing the financial plans and budget

Monitoring and controlling the budget
Managing the cash flows, sometimes even in different
currencies
Assessing all kind of risks against the organization
Forecasting and comparing the future trends beforehand
Cost allocations:
i.
ii.
iii.
Structure the accounts by understanding the power of the chart

of accounts
Projecting the cost centers
Identifying and managing both direct & indirect costs
Monitor & Control the Cashier:

i.
ii.
Monitoring and controlling the casher through taking monthly

report of all transactions.
Having internal control through using common sense
precautions
Name: Tarana Alam

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Designation: Director of Marketing
Responsibilities:
Sales Management:
i.
ii.
Directing the effort of sales professionals by assigning territories,

establishing goals,
Developing training programs, and supervising local sales managers
and their personnel.
Advertising Management:
Overseeing account services, creative services, and media services
department.
Promotional Management:
i.
ii.
iii.
Directing promotional programs

Combining advertising with purchase incentives.
Increasing the sales of the firms goods and services.
Public Relations Management:

i.
ii.
iii.
Responsible for communicating with the firms various publics

conducting policy programs
Supervising the specialists who implement the programs.
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Name: MD. Rahat Khan.

Designation: Director K&D
Event Management:
x.
xi.
xii.
xiii.
xiv.
xv.
Designing the event management plan, and implement that strategic

plan to organize the wedding events.
Keeping better relationship to the suppliers.
Keeping in touch of valued clients and seeing their problems.
Managing the three event organizers in managing the occasions.
Having contract with the parlor, decorator, rent a car, wedding
house.
Overseeing the market situation of price.
Research and innovation:

xvi.
xvii.
xviii.
xix.
xx.
xxi.
Having market research on current fashion and style for wedding

decoration to wedding dress.
Innovating new idea in presenting the wedding dress
Innovative and architectural idea in event management which will
create new tradition toward Bangladeshi.
Researching on cost calculation to make it more attractive.
Researching on Bangladeshi culture, tradition and fashion.
Overseeing the market demand for the product and services.
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Name: Mushfiqur Rahman

Designation: Director, HR & Administration
Responsibilities:
HR Operations:
i. Identifying salary of the employees
ii. Introducing appropriate compensation package for the
employees
iii. Observation and evaluation of their performances
Resourcing & Employer Branding:

i. Recruiting and hiring the right person for particular position
ii. Delivering the responsibilities
HR Development:
i. Introducing proper training program to improve the efficiency
ii. Ensuring the outstanding customer service to make the
customers satisfied.
Health Safety & Environment:

i. Managing a healthy working environment within the premises
ii. authenticating employee attendance and sudden leaves
Administration:
i. Managing and distributing the responsibilities
ii. Making all the office equipment available at the right time for
efficient performance.
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Assessment of Risk
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
These are all those things that make us feel we do better than the
competition. They may be innovative product features, ways we
deal with customers, patents in place, or a particularly skilled
staff.
These are the things the competition does better than us. They
may be processes you feel are inefficient, areas in which you feel
exposed, skills we dont have, or product features that are falling
behind.
These are the trends, changes, and characteristics of our market
that may offer opportunities for us business now or in the future.
This may include new legislation that allows us to move into a
new market, or makes our product even more attractive to
customers.
These are all the changes, and trends associated with our market
that may present our business with problems either now or in the
future. This may include new legislation that forces us to make
expensive product changes, or even makes our product illegal.
Business Strength
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Innovative Business Concept:

Selling all the wedding products and providing all wedding related services is first in
Bangladesh and this is a unique business idea which Wedding Mart is going to start.
There is lots of business who is selling wedding Sari, some is selling Serwani,
Punjabi, or other is selling wedding cosmetics and others staffs. There is no such
business who is selling all the products together. But there is a high demand from a
particular customer segment who wants to buy all the wedding related products and
services under one roof and in a family environment. This unique will help us to get
the market share quickly and loyalty among the customers.
Competitive Price:
Wedding Mart is going to selling all its products items and services at a very
competitive price which will attract potential customers. We have done the market
research on the products price that we are going to sell. We collect the market price of
our products and services. Based on that we have decided our products price which is
very reasonable and competitive.
High Quality Products & Services:
Wedding Mart has a collection of wedding goods and services which is very high
branded quality and world class service quality. Our main mission is to selling high
quality branded products and services to our target customers. As we are targeting the
high class there will be a high demand of this branded products who are not very price
sensitive. Seeing our reasonable and competitive price other customers will be also
be attracted which will increase our potential customers list.
Product & Service Diversity:
Wedding Mart has a huge collection of products and services starting from wedding
dress, cosmetics, to wedding organization, decorators services. Seeing the demand we
have come up with a plan to establish a business where we will all the things
necessary for a marriage. We have a diversified wedding products collection like sari,
lagenga, Punjabi, serwani, cosmetics, shoes, bags etc. we also provides marriage
related services like event management, decorator, DJ, flowers services etc. so we
have a huge and diversified collection of products and services to meet the diversified
demand of the customers.
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Comfortable Shopping within less time:

In Wedding Mart people can buy the entire necessary item under one roof comfortable
which will save their time. In Wedding Mart we have a collection of all the marriage
related products and services and people can come here and can see all the items
under one roof and buy form here within less time. They do not have to go here and
there to buy different items. So it will be comfortable for them and less time
consuming.
Family Environment:
Wedding Mart has a unique environment where people can come with all the family
members and can do shopping in a family environment. Wedding Mart has a unique
feature that is its family environment. Here people can come together with their
family members and do shopping comfortable without any hassle. Also the place is
not crowded so people can move here comfortable.
Multiple Facilities:
Wedding Mart offers a multiple facilities to their customers like parking facilities, trial
room facilities, washroom facilities etc to make the customers shopping pleasant and
memorable. Along with providing diversified products and services, Wedding Mart
also offers multiple facilities to the customers who come to for shopping. They
provides many facilities like parking facilities, trial room facilities, washroom
facilities which will make the customers to do the shopping comfortable and trail
room facilities will allow them to chose their products perfectly.
Attractive packaging:
Wedding Mart offers attractive packing facilities to the customers who will buy its
products by wrapping the products or gifts with very attractive and nice wrapping
papers. It is necessary to do attractive packaging to target the customers and retained
them. After the shopping we will do the packaging of the products with very nice
wrapping papers chosen by the customers if the customers want. This will make the
products and gifts much more attractive and interesting to the others.
Business Weakness
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Area limitation:
Wedding Mart opens their business only at Dhanmondi residential area in Dhaka city.
For the first year they keep their business binding at Dhanmondi because Wedding
Mart is not only a wedding shop but also a event organizer. So the capital for open
this business is relatively high. And most important thing is that it is completely new
concept in Bangladesh. So the expectation of the customers and clients is very high
and it will be cost for the partners if the business can not fulfill this expectation.
Limited operation:
Wedding Mart will confine their business in a single floor. As it is the first operation
of the partners in the business era, they want to confine their business only in a single
floor of the rental house. On the other hand house rent creates extensive cost for the
company if they want to enlarge their operation in a duplex house or in a two floor
based office come shop. The capital for the required operation is also high in opening
business at a posh area.
Uncertainty:
Wedding Mart is introduced in Bangladesh for the very first time. As it is a new
concept for the business people may not accept the idea properly. On the other hand
competitors are for the business is not seen directly, but the suppliers are the most and
big competitors for the company. If people do not take the style and concept of the
business as well as its flexibility, it will be a loss project for the five equal partners.
High capital requirements:

Starting cost for Wedding Mart is extensively high. The company needs huge capital
to start the new concept, new era in Bangladesh. The capital requirements are too high
because there is no such existing business in Bangladesh and the partners of the
business are all entrepreneur. So the Bank who can be the big financer of the business
cannot rely on the entrepreneurs. So the initial capital or investment for the business is
extensively high and the co-owners have to bear unlimited liability with uncertain
capital gain. The co-owners are in uncertainty about the breakeven of the business in
the competitive market.
High Start up cost:

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To open Wedding Mart in Bangladesh needs high start up cost. The initial cost for the
business is too high because the company needs to give several advances to rent
business floor, contract with suppliers and contract with decoration of the business
floor. They also need to purchase a huge amount of office equipment and supplies at
this moment. And in the first six months the business does not go for operations but
the expenses are incurred eventually. So the company has to face a huge start up cost
for the first years of organization and operation.
Business Opportunities
No direct competition:
Even though there are numbers of shopping malls around the Dhaka city and many
event management firms have already been established successfully, we do not see
anyone who is directly competing with us. Actually we are totally new in such of
business segment and that is our greatest opportunity. It will be easier for us to capture
the market initially.
New Concept:
Getting all types of wedding products under a roof is totally a new concept in
Bangladesh and our services will catch the attraction of affluent families as well.
Actually our job is to ease the arrangement of huge wedding function for affluent
families and they will be able to give more time to their families from their busy
schedule. In future we are planning to introduce honeymoon package for newly
married couple.
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Changing Trends and Psychology:

Nowadays families are spending huge money in the wedding function and this is one
kind of showing off tendency and that will create opportunity for our business. Now
both boys and girls want expensive not only dresses but also jewelry in their wedding.
At the same time, young generations want more fun in the wedding program and from
them we will arrange reputed band team and DJ party as per demand from our
customers.
Customized Product:
From our website our clients will get all the information of our new product
collections and services. We will give them opportunity to customize their demand
and it will give them more flexibility to work with us. Actually we will forecast
according to our customers demands and suggestion.
Growth Opportunity:
We have protected expansion opportunity as all the main cities now have all types of
facilities for our business such as transportation, community centre, electricity,
expensive shopping mall etc. Gradually we will set up our branches all over the
country and arrange function for all types of people and region in the country.
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Business Threats
Our suppliers are the big competitors:
We are planning to buy some of our selling products from Chadnichok market, Mirpur
Benaroshi Polli, and other cheap places. But many people are already aware of the
fact that in those places the product prices are much lower than any other places in
Dhaka. So they often go to these markets for shopping their necessary things for a
wedding occasion. Therefore, we have to face many problems to capture the market
initially.
Limited market:
As we are targeting only the two groups of people on the basis of their income levelhigh and higher middle class, our market is very limited. We will keep mostly the
expensive products with high quality in our shop and will also provide all services at
higher prices. So only the high class and higher-middle class families can afford our
products. In this way we are not able to capture the majority market as most of our
population belongs to under middle-class families and it might affect our business
profit margin.
Future Competitors:
After the establishment of our business there might come some other business
organizations following us with same product and service facilities. At that time they
might come up with even better options for capturing the market. So it can be a threat
for us as our captured customers can be attracted towards those shops for buying
products or services with better facilities.
Our Political and Economical aspects:

The most critical consideration for entering into a new market place is to assess the
political and economical conditions of that country. We will start our business in next
year when there a new political party will be leading the country. So on that time new
rules might be developed, tax and tariff can be increased; strikes or any political
unrest situation can be arisen. Therefore, this political and economical unrest can
affect our business badly in future.
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Better communication with the neighbor

country:
Nowadays people, especially the high class and higher-middle class people, tends to
do the wedding shopping from India if they can afford the cost. And the reduction in
transportation cost to go to India has facilitated them even more. Though we will
provide those people the same products imported from India, them may not trust on
our products and may find better to go there themselves for shopping those products
at a cheaper transportation cost.
New Technologies
Here basically we have to find out threats regarding new technologies. But as our
business is not a manufacturing organization, we do not have any specific threat in
this particular area. In this competitive age technology means a lot. As our business is
totally based on providing services and selling final products to the customers, we
might need to adopt updated technologies to maintain or increase our operational
efficiency. But it does not bring us any threats. If we were a manufacturing
organization then we had to be more aware of the fact and adopt new technologies
time to time.
Contingency Plan
Now-a-days companies are willing to launch contingency planning initiatives. In
many cases failures are occurring at an increasing rate and contingency invocation is
just on the horizon. We also have our contingency plan for the future security.
We have two different and independent businesses; one is selling of wedding products
and another event management activities though we are planning to limit in only to
wedding function. So in any one of our segments fails to make profit we will focus on
the safe one.
Along with this we might have another opportunity to involve in import export of
wedding products. That also has an ample opportunity in our current market and
global market.
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So our contingency plans ensure the security of our investment and create some other
opportunity as well which we might include in future as well.
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FINANCIAL MANAGEMENT PLAN:

Assumptions & Financial Plans:
While calculating the pro forma Income Statement we followed a simple method
called percentage-of-sale method. This method forecasts sales and then expresses the
various income statement items as percentages of projected sales. We estimated our
sales for the first year is Tk.200000 and estimated an increase by 10% for the next
two years and other incomes increases by 2%.
We have also assumed that Administrative and General Expenses are 10% of Incomes
from operations, and the Marketing / Advertisement costs are 5% of the incomes from
operations. Other miscellaneous expenses are assumed to be constant throughout the
year.
Depreciation charges for building are assumed to be 2%, and the Straight-line method
of calculation depreciation was used. For Fixtures & Equipments, depreciation
charges are assumed to be 5%, higher than Building because of more frequent use.
Fixture & Equipments is depreciated using the Reducing-balance method.
Items that are considered under Income from Operation are:

1) Wedding Products
2) Wedding Services
Items that are considered under Other Incomes are:

1) Rent wedding program related accessories
2) Bookings / Rentals
Items that are considered under Administrative and General

Expenditures are:
1. Salaries & Wages
2. Repairs & Maintenance
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3. Electricity
4. Water
5. Gas
6. Entertainment
7. Telecommunication Charges
8. Cleaner & Laundry
9. Computerization & Software Service Charge
10.
Security
While calculating the pro forma Balance Sheet, we have assumed that the value of
Property appreciates by 2% every successive year.
The amounts receivables were assumed to be 10% of the Income from Operation as
few maybe few loyal customers we might be willing to give credit facilities and
others.
The Amounts payable was assumed to be 2% of the total expenses that incurs in the
pro forma income statement, for e.g. there could be delayed payments of bills and
others.
Finally, we have included an extra item in the Balance sheet, named as Adjustments or
other amounts receivables, where every other amount are considered to balance our
accounts at the end of the day.
We also found out that we can finance our company by taking loan from the financial
institutions (i.e. Banks) at the rate of 13%. As we are financing 42.31% of our initial
investment by taking loan from banks, we were able to calculate our interest
expenses. During our research we also found out that the business is subject to 35%
city corporation tax rate and we used this rate to calculate our tax liabilities.
Cost of Capital:
The cost of capital is the rate of return that a firm must earn in the projects in which it
invests to maintain the market value of its stock. We can also think of it as the rate of
return required by the market suppliers of capital to attract their funds to the firm. If
risk is held constant, projects with a rate of return above the cost of capital will
61
MGT 368.2
Business Plan
increase the value of the firm, and projects with a rate of return below the cost of
capital will decrease the value of the firm.
The cost of capital is an extremely important financial concept. It acts as a major link
between the firms long-term investment decisions and the wealth of the owners as
determined by investors in the marketplace. The cost of capital is a dynamic concept
affected by a variety of economic and firm-specific factors. To isolate the basic
structure of the cost of capital, we have to make some key assumptions relative to risk
and taxes:
1. Business risk- this assumption means that the firms acceptance of a given
project does not affect its ability to meet operating costs.
2. Financial risk- This assumption means that projects are financed is such a way
that the firms ability to meet required financing costs is unchanged.
3. After-tax costs are considered relevant. This assumption is consistent with the
frame-work used to make capital budgeting decisions.
There are four basic sources of long-term funds for the business firm: long-term debt,
preferred stock, common stock, and retained earnings.
The Weighted Average Cost of Capital (WACC), ka, reflects the expected average
future cost of funds over the long run. It is found by weighting the cost of each
specific type of capital by its proportion in the firms capital structure.
Calculation:
Interest on Loan = 13%
After Tax Cost of Debt
=13% x (1 - 0.35)
= 8.45%
WACC = WdKd + WcKc

= (8.45% x 0.4231) + (16% x 0.5769)
= 3.58% + 9.23%
= 12.81%
= 13%
62
MGT 368.2
Business Plan
WEDDING MART
ESTIMATED COST OF THE PROJECT
EQUITY
LOAN
TOTAL
Tk.
Tk.
Tk.
Building
5,000,000
1,000,000
6,000,000
Furnitures and Equipments
1,000,000
200,000
1,200,000
Total Fixed Cost of the Project
6,000,000
1,200,000
7,200,000
Add: Working Capital Required
5,000
TOTAL COST OF PROJECT
6,005,000
1,200,000
Sources of Finance
Tk.
Equity
6,005,000
83.34%
Loan
1,200,000
16.66%
Total
7,205,000
100.00%
PARTICULARS
63
5,000
7,205,000
MGT 368.2
Business Plan
64
MGT 368.2
Business Plan
WEDDING MART
INCOME STATEMENT [2012-2016]
PARTICULARS
Income from Operation (Increases by 10%)
Other Incomes (Increases by 2%)
Total Income
Less: Expenditures
Administrative & General (10% of Opt. Income)
Marketing (5% of Opt. Income)
Other Expenses
Depreciation:
Building (2% Straight Line)
Fixtures & Equipments (5% Reducing Balance)
Total Expenditures
EBIT
Less: Interest Expenses (Bank: 13%)
EBT
Less: City Corporation Taxes (35%)
NET INCOME
2012
2013
2014
2015
2016
Tk.
200,000
500,000
700,000
Tk.
220,000
525,000
745,000
Tk.
242,000
551,250
793,250
Tk.
266,200
578,813
845,013
Tk.
292,820
607,753
900,573
20,000
10,000
200,000
22,000
11,000
200,000
24,200
12,100
200,000
26,620
13,310
200,000
29,282
14,641
200,000
120,000
60,000
410,000
120,000
57,000
410,000
120,000
54,150
410,450
120,000
51,443
411,373
120,000
48,870
412,793
290,000
156,000
134,000
46,900
87,100
335,000
156,000
179,000
62,650
116,350
382,800
156,000
226,800
79,380
147,420
433,640
156,000
277,640
97,174
180,466
487,780
156,000
331,780
116,123
215,657
65
MGT 368.2
Business Plan
WEDDING MART
BALANCE SHEET [2011-2015]
ASSETS
2012
2013
2014
2015
2016
Tk.
Tk.
Tk.
Tk.
Tk.
Fixed Assets:
Land Property
Building
Fixtures & Equipments
6,000,000
1,200,000
5,880,000
1,140,000
5,760,000
1,083,000
5,640,000
1,028,850
5,520,000
977,408
Current Assets:
Cash
Amounts Receivable (10% of Opt. Incomes)
Adjustments / Other Amounts Receivables
-10,000
20,000
192,100
10,000
22,000
245,800
32,000
24,200
309,350
56,200
26,620
383,303
82,820
29,282
469,293
TOTAL ASSETS
7,300,300
7,416,650
7,564,079
7,744,563
7,960,249
1,200,000
8,200
1,200,000
8,200
1,200,000
8,209
1,200,000
8,227
1,200,000
8,256
6,005,000
87,100
6,005,000
203,450
6,005,000
350,870
6,005,000
531,336
6,005,000
746,993
LIABILITIES
Bank Loan
Amounts Payable (2% of Total Expenses)
EQUITY
Owners Equity
Retained Earnings
66
MGT 368.2
Business Plan
TOTAL LIABILITIES + CAPITAL
7,300,300
7,416,650
7,564,079
7,744,563
7,960,249
WEDDING MART
FREE CASH FLOW [2011-2015]
DESCRIPTION
PRESENT
2012
2013
2014
2015
2016
Tk.
Tk.
87,100
Tk.
116,350
Tk.
147,420
Tk.
180,466
Tk.
215,657
180,000
267,100
177,000
293,350
174,150
321,570
171,443
351,909
168,870
384,527
200,000
220,000
242,000
266,200
292,820
20,000
-30,000
22,000
2,000
24,200
2,200
26,620
2,420
29,282
2,662
-10,000
20,000
-10,000
10,000
22,000
10,000
32,000
24,200
32,000
56,200
26,620
56,200
82,820
Net Income
Cash Flow from Operating Activities
Adjustments for non Cash Items
Depreciation
Operating Cash Flows
Income from Operation
Initial Working Capital
Net Working Capital Required (10% of Income)
Change in Working Capital
Cash Generated During the Year
Add: Cash at the Beginning of the year
FREE CASH FLOW
50,000
-10,000
67
MGT 368.2
Business Plan
WEDDING MART
NET PRESENT VALUE (NPV)
Cost of Capital =
Number of Years =
7205
5
Initial Investment
-7,205,000
-10,000
10,000
32,000
56,200
Present Value
1
(1)
(4)
(8)
(11)
(24)
NPV = PV - Initial Investment
NPV =
7,204,976
Decision Criteria:
If NPV > Tk.0 , accept the project.
If NPV < Tk.0, Reject the project.
68
82,820
MGT 368.2
Business Plan
The project can be accepted because it can earn a return grater than its costs of capital.
69

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MGT 368.

FUTURE OUTLOOK AND TRENDS

Name of The Competitor

Existing Event Management Firms

Triune Exhibition & Event

Mirpur Benarosi Palli

Other Marriage Staffs

o Industry Condition in next 5 years:

o The PEST tool table:

Overseas economies and trends

Current legislation home market

General taxation issues

Taxation specific to product &

Competing technology development

Consumer attitudes and opinions

Law changes affecting social factors

Information and communications

Brand, company, technology image

Consumer buying patterns

Major events and influences

Intellectual property issues

Advertising and publicity

Dress of bride & bridegroom

Ornaments & cosmetics

o Photographic & video services:

o Orders on Dress designing & tailoring service:

o Decoration & wrapping service:

o Car rent and decoration:

o Band party & DJ service:

o Kazi & Pundit services:

SIZE OF THE BUSINESS

OFFICE EQUIPMENT AND PERSONNEL

o MD. Rahat Khan

Physical Plant Layout:

Wedding Materials and Equipments with the

Names of the bridal products suppliers

A.K.Gems and Jewellers

Dress of bride & bridegroom

Ornaments & Cosmetics

Names of the bridal service suppliers

Shabag Flower Centre

Event management: We will provide various types of event

Photographic & video services: we will provide professional

Orders on Dress designing & tailoring service: We keep

Decoration & wrapping service: On event management side we

Car rent and decoration: For the purpose of wedding ceremony, we

Catalog on jewelry: We will keep some sample ornaments in our shop

Decorator service: We arrange the decorator services of home

Tom-tom service: We have contract with tom-tom driver of old town so

Flower services: Nowadays flowers are very popular in decorating the

Parlor services: We have contract with some famous parlor house in

Kazi & Pundit services: For Muslim wedding we provide Kazi

Operational Process combined with flow of

To maintain proper image of a product we have to consider many factors such as

We also involve in contractual activities, such as photography, decoration, car

Exclusive Wedding Products:

Gift/ Wrapping papers

Ribbon, Bow, Lace, Other decorating

Lipstick/ Lip gloss

Eyebrow pencil/ Kajol

Face powder/ Pan cake

Kumkum/ Color pencil

Hair gripper/ punch clip/ Band